(xxii) Provisions and Contingencies
A Provision is recognized for a present obligation as
a result of past events if it is probable that an outflow
of resources will be required to settle the obligation
and in respect of which a reliable estimate can be
made. Provisions are measured at the present value
of management's best estimate of the expenditure
required to settle the present obligation at the end
of the reporting period. The discount rate used to
determine the present value is a pre-tax rate that
reflects current market assessments of the time
value of money and the risks specific to the liability.
The increase in the provision due to the passage of
time is recognised as interest expense. Liabilities
which are material and whose future outcome cannot
be ascertained with reasonable certainty are treated
as contingent and disclosed by way of notes to the
accounts. Contingent assets are also disclosed by
way of notes to the accounts.
(xxiii) Mines Restoration provisions
An obligation for restoration, rehabilitation and
environmental costs arises when environmental
disturbance is caused by the development or
ongoing extraction from mines. Costs arising from
restoration at closure of the mines and other site
preparation work are provided for based on their
discounted net present value, with a corresponding
amount being capitalised at the start of each project.
The amount provided for is recognised, as soon as
the obligation to incur such costs arises. These costs
are charged to the Statement of Profit and Loss over
the life of the operation through the depreciation of
the asset and the unwinding of the discount on the
provision. The costs are reviewed periodically and
are adjusted to reflect known developments which
may have an impact on the cost or life of operations.
The cost of the related asset is adjusted for changes
in the provision due to factors such as updated cost
estimates, new disturbance and revisions to discount
rates. The adjusted cost of the asset is depreciated
prospectively over the lives of the assets to which
they relate. The unwinding of the discount is shown
as a finance cost in the Statement of Profit and Loss.
(xxiv) Segment reporting
An operating segment is a component of the
Company that engages in business activities from
which it may earn revenues and incur expenses,
whose operating results are regularly reviewed
by the company's Chief Operating Decision Maker
("CODM") to make decisions for which discrete
financial information is available. Based on the
management approach as defined in Ind AS 108, the
CODM evaluates the Company's performance and
allocates resources based on an analysis of various
performance indicators by business segments and
geographic segments.
Note 7.2 : The carrying amount of deferred tax assets are reviewed at each balance sheet date. Based on the management's
estimate regarding the future projection, company expects to have sufficient future taxable profits against which above deferred
tax asset shall be realized.
Note 7.3 : The Company has evaluated the option under Section 115BAA (introduced by the Taxation Laws (Amendment) Ordinance,
2019) to pay tax at a concessional rate of 22% (plus surcharge and cess) and intends to transition from April 1, 2026. In line with
Ind AS 12, deferred tax balances have been re-measured which has resulted in a credit of ' 600.46 lakhs in the financial statement
for the current financial year. Furthermore, pursuant to the amendments introduced by the Finance Act, 2026, which permit the
utilization of previously accumulated Minimum Alternate Tax (MAT) credit under the concessional tax regime, the company has
continued carrying the unutilised MAT credit balances as on March 31, 2026 on the basis of its projection of future taxable profits.
Note 9.1 -Capital advances includes advance against land of '9,385.81 lakhs (March 31, 2025 - ' 5,404.28 lakhs).
Note 9.2 - Capital advances include an amount of ' 3,951.00 lakhs (March 31, 2025: nil) paid to the North Cachar Hills Autonomous
Council, Haflong, towards allotment of mining land and plant land. However, pending receipt of the necessary clearances and
complete possession, the said amount has been shown as capital advances.
Note 9.3 -Other advances represents upfront fees paid for allotment of Limestone mines amounting to ' 948.50 lakhs (March 31,
2025 : ' 948.50 lakhs).
Note 11.1 : There is no unbilled receivables at each reporting date.
Note 11.2 : Refer note 22 in respect of charge created against borrowings.
Note 11.3 : No trade receivables are due from directors or other officers of the Company, either severally or jointly with any other
person. Further no trade receivables are due from firms or private companies, respectively in which any director is a partner, a
director or a member.
Note 11.4 : Refer note 42 A (i) for details in movement of loss allowance.
Note 11.5 : Refer note 47 for details of transactions with related parties.
Note 13.1 : Fixed deposits with banks include fixed deposits of '3,140.48 lakhs (As at March 31, 2025: ' 683.00 lakhs) which have
been held as margin money with banks against bank guarantees given by them.
Note 13.2 : Balances in unpaid dividend accounts can be utilised by the company only towards settlement of the respective unpaid
dividends or toward transfer to investor education and protection fund (IEPF) in accordance with law.
a) Terms/Rights attached to equity shares
The Company has only one class of equity shares having face value of ' 1/- per share. Each holder of equity shares is entitled
to one vote per share. The Company declares and pays dividend 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 except in case of interim
dividend.
In the event of liquidation of the Company, the holders of the 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.
Capital reserve
This reserve has been created pursuant to scheme of amalgamation carried out in earlier years and can be utilized in accordance
with the provisions of the Companies Act, 2013.
Capital redemption reserve
In accordance with section 69 of the Companies Act, 2013, the Company creates capital redemption reserve equal to the nominal
value of the shares bought back as an appropriation from retained earnings.
General reserve
The Company had transferred a portion of the net profit of the Company before declaring dividend to general reserve pursuant
to the earlier provisions of Companies Act, 1956. Mandatory transfer to general reserve is not required under the Companies Act,
2013.
Retained earnings
Retained earnings represents accumulated profit of the Company as on reporting date. Such profits are after adjustment of
payment of dividend, transfer to any reserves and adjustment for remeasurement gain/loss on defined benefit plan.
Note 22.1 : Working capital borrowings of '345.22 lakhs (March 31, 2025: '201.66 lakhs ) from banks are secured by first charge on
current assets of the company's cement grinding unit at Guwahati, Assam.
Note 22.2 : Working capital borrowings of '4.51 lakhs (March 31, 2025: '58.15 lakhs ) from banks are secured by pari passu charge
on current assets of the Company's manufacturing facility at Lumshnong, Meghalaya.
Note 22.3 : Working capital borrowings of '73.79 lakhs (March 31, 2025: '1.29 lakhs ) from a bank is secured by first charge on all
current assets of the Siliguri Grinding Unit.
Note 22.4 : The rate of interest for the working capital facilities from banks ranges between 8.15% to 10.40% (March 31, 2025¬
8.25% to 9.80%).
Note 22.5 : Buyer's credit for capital expenditure from a bank as on March 31, 2025 - ' 3,195.65 lakhs carrying interest @ 6 months
EURIBOR 0.55% p.a was secured by way of exclusive charge on machinery imported under the facility sanctioned by the bank.
The same has been repaid during the year.
Note : 39 - Employees benefit obligations
Post-employment obligations
(A) Gratuity
Every employee who has completed five years or more of service is entitled to gratuity on terms not less favourable than
the provisions of the Code on Social Security, 2020. The present value of defined obligation and related current cost are
measured using the Projected Unit Credit Method with actuarial valuation being carried out at Balance Sheet date. The
scheme is funded with the insurance company.
(i) The amounts recognised in the Balance sheet and the movements in the net defined benefit obligation over the year are
as follows:
(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:
Investment risk:
The present value of the defined benefit plan liability is calculated using a discount rate determined by reference to the
Government of India bonds. If the return on plan asset is below this rate, it will create a plan deficit.
Interest risk:
A decrease in the interest rate on plan assets will increase the plan liability.
Life expectancy:
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 at the end of the employment. An increase in the life expectancy of the plan
participants will increase the plan liability.
Salary growth risk
The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants.
An increase in the life expectancy of the plan participants will increase the plan liability.
(vi) Defined benefit liability and employer contributions
Expected contributions to post-employment benefits plans for the year ending March 31, 2027 are ' 199.50 lakhs ( March
31, 2026 - '196.30 lakhs)
The weighted average duration of the defined benefit obligation is 4.51 years (March 31,2025: 4.63 years ). The expected
maturity analysis of undiscounted gratuity is as follows:
(B) Defined Contribution Plan:
In respect of defined contribution plan with respect to provident fund contribution and pension fund contribution, an amount
of ' 462.01 lakhs (March 31, 2025: '460.58 lakhs) has been recognised as expenses in the statement of profit and loss during
the year.
Note : 40 - Capital management
Risk management
The primary objective of capital management is to ensure the maintenance of healthy capital ratio in order to support its business
and maximise stakeholders value. The company manages its capital structure according to changing economic conditions. No
changes were made in the objectives, policies or processes during the year ended March 31, 2026 as compared to previous year.
There have been no breaches of financial covenants of any interest bearing loans and borrowings for the reported year. The
company monitors capital structure on the basis of debt to equity ratio. For the purpose of company's capital management, equity
includes paid up equity share capital and other equity, and debt comprises long-term and short-term borrowings including current
maturities of long term borrowings. The following table summarizes debt and equity of the company.
(i) Fair value hierarchy
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: 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 all
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 is not based on observable market data, the instrument is included in level 3.
(ii) Valuation technique used to determine fair value
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:
(a) The fair value of cash and cash equivalents, trade receivables and payables, short-term loans, current financial
liabilities and assets and current borrowings approximate their carrying amount largely due to the short-term nature
of these instruments. The management considers that the carrying amounts of financial assets and financial liabilities
recognised at nominal cost/amortised cost in the financial statements approximate their fair values. In respect of non
current borrowings and loans, fair value is determined by using discount rates that reflect the present borrowing rate of
the company .
(b) Investments (other than Investments in Subsidiaries) traded in the active market are determined by reference to the
quotes from the Stock exchanges as at the reporting date. Further, in case of bonds the net present value at current
yield to maturity have been considered. Unquoted investments in shares have been valued based on historical net
asset value as per the latest audited financial statements after considering the impact of fair valuation of immovable
properties which is based on valuation report from independent valuer.
Note : 42 - Financial risk management
The Company's activities are exposed to a varieties of financial risks viz credit risk, liquidity risk and market risk (i.e. foreign
currency risk, interest rate risk and price risk).This note explains the sources of risk which the entity is exposed to and how the
entity manages the risk.
(A) Credit risk
Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading
to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from
its financing activities including deposits placed with banks and financial institutions and other financial instruments.
i) Trade receivables
Customer credit risk is managed as per the Company's established policies, procedures and defined controls relating to
customer credit risk management. Trade receivables are non-interest bearing and are generally carrying 30 days credit terms
for trade customers. Outstanding customer receivables are regularly monitored and the Company receives security deposits
from its customers which mitigates the credit risk. No single customer accounted for 10% or more of the Company's net
sales. Therefore, the Company does not expect any material risk on account of non-performance by any of its counterparties.
For expected credit loss as at each reporting date, the Company assesses the risk profile of trade receivables and categorises
risk profile viz. trade receivables for which credit risk has not been significantly increased from initial recognition, trade
receivables for which credit risk has increased significantly but are not credit impaired and for trade receivables for which
credit risk has increased significantly and are credit impaired.
The Company has adopted simplified approach model to compute credit loss allowance based on a provision matrix. The
provision matrix is prepared based on historically observed default rates over the expected life of trade receivables and
is adjusted for forward-looking estimates. At each reporting date, the historically observed default rates and changes in
the forward-looking estimates are updated. Accordingly, loss allowances on trade receivables are measured using provision
matrix at an amount equal to life time expected losses i.e. expected cash shortfall.
ii) Financial instruments and deposits
Credit risk pertaining to balances with banks and financial institutions is managed by the Company's Treasury department in
accordance with Company's policy. Surplus funds are parked only within approved investment categories with well defined
limits. Investment category is periodically reviewed by the Finance committee.
Credit risk arising from short term liquid funds, other balances with banks and other cash equivalents is limited because the
counterparties are banks and recognised financial institutions with high credit ratings assigned by the credit rating agencies.
None of the financial instruments of the Company result in material concentration of credit risks.
Other financial assets mainly include incentives receivable from the government, insurance claim receivables, fixed deposits,
loans & interest thereon and security deposits given. There are no indications that defaults in payment obligations would
occur in respect of these financial assets.
The Company's maximum exposure to credit risk for the components of the Balance Sheet as at March 31, 2026 and March 31,
2025 is the carrying amounts as given in Note 41.
Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities that
are settled by delivering cash or another financial asset.
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of
funding through an adequate amount of committed credit facilities to meet obligations when due. Due to the nature of the
underlying business, the Company maintains sufficient cash and liquid investments available to meet its obligation.
As at 31 March 2026, the Company's current liabilities exceeded its current assets. However, based on the ageing profile and
expected realisation of financial assets, scheduled settlement of financial liabilities, anticipated future cash flows, available
sanctioned & unutilised banking facilities, the management believes that the Company will be able to meet its financial
obligations as and when they fall due within a period of one year from the balance sheet date.
Management further monitors rolling forecasts of the Company's liquidity position (comprising the undrawn borrowing
facilities below) and cash and cash equivalents on the basis of expected cash flows. The management also considers the
cash flows projection and level of liquid assets necessary to meet these on a regular basis.
(a) Other financial liabilities includes deposits received from customers amounting to ' 19,491.43 lakhs (March 31,2025 - '19,881.52
lakhs). 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.
(C) Market risk
(i) Foreign currency risk
The risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange
rates. The Company deals with international vendors with respect to stores & spares and capital goods procurement, which
rises exposure of the company to foreign exchange risk. In view of low proportion of import, as compared to the overall
operations, the exposure of the Company to foreign exchange risk is also not considered to be material and thus the company
has not entered into any derivative financial contracts as on March 31, 2026. The risk is measured through a forecast of highly
probable foreign currency cash flows.
(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 changes
in market interest rates. The Company exposure to the risk of changes in market interest rates relates primarily to the
Company debt obligations with floating interest rates.
The Company's Deposit taken from dealers is at fixed rate and measured at amortised cost. They are therefore not subject to
interest rate risk as defined in Ind AS 107, since neither the carrying amount nor the future cash flows will fluctuate because
of a change in market interest rates.
(a) Interest rate risk exposure on financial liabilities
The exposure of the Company's financial liabilities to interest rate risk is as follows:
The risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices
(other than those arising from interest rate risk or currency risk), whether those changes are caused by factors specific to the
individual financial instrument or its issuer or by factors affecting all similar financial instruments traded in the market.
The Company's exposure to equity securities price risk arises from investments held by the company in equity securities and
classified in the Balance Sheet as at fair value through profit and loss. The Company has investment in quoted and unquoted
equity securities as per details in note no 41. Investment is done in accordance with the limits set by the Company. The
Company's Finance Committee reviews and approves all investment decisions.
Note : 43 - Lease
a) The Company has entered into lease agreements with different parties for taking offices and land on lease and license basis
for business operation. The lease term of different contracts varies in a range of 2 to 99 years and price is on fixed rental basis
with escalation clauses in the lease agreements.
b) The Company also has certain leases with lease terms of 12 months or less. The Company applies the 'short-term lease'
recognition exemptions for these leases.
c) The weighted average incremental borrowing rate for lease liabilities are between 7.25% to 9.60% per annum (March 31, 2025:
8.71% to 8.84% per annum). Set out below are the carrying amounts of lease liabilities included under financial liabilities and
its movements during the year.
(a) Earlier the Company had received a demand notice dated February 19, 2020 from the Director of Mineral Resources, Meghalaya,
for payment of royalty, MEPRF, VAT/GST for '4,184.06 lakhs in pursuance to the National Green Tribunal (NGT) order dated
January 17, 2020 for alleged illegal coal procurement. By passing the said order NGT had accepted the recommendation
of 5th Interim Report of the Independent Committee set up by NGT, which then suggested imposition of penalty on cement
companies and thermal power plants in Meghalaya.
The Company did not purchase any illegal coal and had complied with all disclosure requirements of the various Government
Departments. The Report of NGT Committee was based on the assumptions & views of the Committee and not on hard facts.
Moreover neither the Company has been issued a show-cause nor any opportunity of being heard was given to the Company
before submitting the Interim reports by the Independent Committee to NGT. Further NGT did not serve any notice on the
Company before passing the impugned order which is a clear violation of principles of natural justice.
In an earlier year on an appeal by the Company, the Apex Court vide it's order dated May 2, 2023 restored the proceeding back
to NGT, at the stage, as it stood prior to the passing of the judgement dated January 17, 2020. Subsequently the matter has
been transferred to the NGT, Eastern Zone Bench, and the Company has filed necessary affidavits in the earlier year and the
matter is subjudice. No provision has been considered necessary at this stage.
(b) As reported in the earlier year, the Company had received a revised demand notice from the Divisional Mining Officer (DMO),
Directorate of Mineral Resources, Meghalaya, Jowai, towards alleged outstanding royalty and cess on coal, shale and clay
procured/consumed by the Company during certain periods between financial years 2012-13 and 2024-25 amounting to
'971.54 lakhs (as on March 31, 2025 '978.87 lakhs (including penal interest of '109.98 lakhs (as on March 31, 2025: '109.98
lakhs). Against the said demand, the Company had recognised a provision of '439.92 lakhs (as on March 31, 2025: '439.92
lakhs) in earlier years as a matter of prudence.
The Company is of the view that, in accordance with the provisions of the Mines and Minerals (Development and Regulation)
Act, 1957, the liability to pay royalty in respect of minerals extracted from a mining lease area rests with the holder of the
mining lease and not with the purchaser of such minerals. Accordingly, the Company believes that no liability arises in respect
of minerals procured from third-party vendors.
Based on the above developments and legal advice obtained, the management believes that no additional liability exists in
respect of the balance demand. Accordingly, no further provision has been considered necessary.
(c) The Company had received a demand notice from the Directorate General of Goods and Services Tax Intelligence (DGGI),
Shillong, regarding non-payment of GST under the Reverse Charge Mechanism (RCM) on royalty, District Mineral Foundation
(DMF), National Mineral Exploration Trust (NMET) contribution and Mineral Cess amounting to '861.23 lakhs, and wrongful
availment of Input Tax Credit (ITC) amounting to '239.23 lakhs during certain periods between July 2017 and December 2018.
The demand also includes equal amount of applicable interest and penalties.
The Company had discharged GST under RCM amounting to '239.23 lakhs at the applicable rate of 5% prior to the issuance
of the demand notice. However, the DGGI raised the demand by applying GST at the rate of 18%, relying on CBIC Circular No.
164/20/2021-GST dated October 6, 2021. The Company has contested the demand and submitted its detailed reply before the
DGGI, inter alia, relying upon judicial precedents in similar matters decided in favour of taxpayers.
No further communication has been received from the DGGI subsequent to the submission of the reply, and the matter
remains pending adjudication.
Based on legal advice obtained, the management believes that the demand is not sustainable and that the Company has a
strong case on merits. Accordingly, no provision has been considered necessary in respect of the aforesaid matter.
E) Terms and conditions of transactions with related parties:
(i) The sales and purchases transaction with related parties (including transactions related to property, plant and
equipment) are made in the normal course of business and on terms equivalent to those that prevail in arm's length
transactions. Outstanding balances at the year-end are unsecured and interest free and settlement occurs in cash.
(ii) Refer note 5 and note 18 for details ( viz payment terms and rate of interest) of inter corporate loans and inter corporate
borrowings.
(iii) For the year ended March 31, 2026, the Company has not recorded any impairment of receivables relating to amounts
owed by related parties. This assessment is undertaken each financial year through examining the financial position of
the related party and the market in which the related party operates.
(iv) The remuneration of directors and KMP is determined by the Nominations & Remuneration Committee having regard to
the performance of individuals and market trends.
(a) Average inventory (opening inventory closing inventory)/2
(b) Average trade receivable -: (opening trade receivable closing trade receivable)/2
(c) Average trade payable -: (opening trade payable closing trade payable)/2
(d) Capital employed -: Equity (incl. other equity-Intangible Assets- Intangible Assets under Development) Current Borrowing
Non Current Borrowing
(e) Average shareholders equity-: (opening equity (incl. other equity) closing equity (incl. other equity ))/2
(f) Average Investment -: (opening investment closing investment)/2
(g) Debt service -: Interest lease payments principal repayments
Explanation for variances exceeding 25% :
A Increase in EBITDA/net profit due to increase in sales and decrease in operating cost.
$ Increase in earnings availbale for debt service mainly due to increase in operating profits and increase in cash outflow due to
term loan repayment.
# Mainly due to increase in average trade payable along with lower purchases of raw materials
*Change in ratio is mainly on account of increase in sales and in increase working capital.
i) The Company has not advanced or loaned or invested funds to any other person or entity, including foreign entities
(Intermediaries) with the understanding that the Intermediary shall:
(a) 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
(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
ii) The company has not been declared as wilful defaulter by any bank of financial institution or other lender.
iii) The Company have not traded or invested in Crypto currency or Virtual currency during the current financial year and previous
financial year.
iv) The Company has not received any fund from any person or entity, including foreign entities (Funding Party) with the
understanding (whether recorded in writing or otherwise) that the Company shall :
(a) 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
(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
v) The Company has not entered into any such transaction which is not recorded in the books of accounts that has been
surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search
or survey or any other relevant provisions of the Income Tax Act, 1961).
vi) The Company has complied with the number of layers prescribed under the Companies Act, 2013.
vii) The Borrowing obtained by the company from banks have been applied for the purposes for which such loans were taken.
viii) Struck off Company: Transactions with the struck off companies under section 248 of the Companies Act,2013 is as under -:
The Company has been using various 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 except Audit trail feature
is not enabled at database level. Further, no instance of audit trail feature being tampered with was noted in respect of the
accounting software were the audit trail has been enabled.
Additionally, the audit trail of relevant prior years has been preserved by the company as per the statutory requirement for record
retention to the extent it was enabled and recorded in those respective years.
Note: 56
These financial statements have been approved by the Board of Directors of the Company on May 22, 2026 for issue to the
shareholders of the Company for the adoption.
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