KYC is one time exercise with a SEBI registered intermediary while dealing in securities markets (Broker/ DP/ Mutual Fund etc.).   |   Prevent unauthorized transactions in your account – Update your mobile numbers / email ids with your stock brokers. Receive information of your transactions directly from exchange on your mobile / email at the EOD | Filing Complaint on SCORES - QUICK & EASY a) Register on SCORES b) Mandatory details for filing complaints on SCORE - Name, PAN, Email, Address and Mob. no. c) Benefits - speedy redressal & Effective communication   |   BSE Prices delayed by 5 minutes... << Prices as on Aug 11, 2022 >>  ABB India 2798.4  [ 0.98% ]  ACC 2228.6  [ 0.06% ]  Ambuja Cements Ltd. 380.3  [ 0.03% ]  Asian Paints Ltd. 3404.9  [ -0.22% ]  Axis Bank Ltd. 759.2  [ 2.75% ]  Bajaj Auto 4031.2  [ -0.08% ]  Bank of Baroda 123.2  [ 3.83% ]  Bharti Airtel 709.55  [ -0.76% ]  Bharat Heavy Ele 52.9  [ 0.57% ]  Bharat Petroleum 328.25  [ -0.03% ]  Britannia Ind. 3640.45  [ -0.17% ]  Cairn India Ltd. 285.4  [ 0.90% ]  Cipla 1038.4  [ 0.02% ]  Coal India 218.6  [ -0.57% ]  Colgate Palm. 1576.1  [ -0.64% ]  Dabur India 582.05  [ -0.46% ]  DLF Ltd. 372.45  [ 1.10% ]  Dr. Reddy's Labs 4257.15  [ 0.35% ]  GAIL (India) 128.7  [ -1.61% ]  Grasim Inds. 1599.85  [ -0.69% ]  HCL Technologies 962.05  [ 1.00% ]  HDFC 2453.6  [ 2.32% ]  HDFC Bank 1486.75  [ 1.42% ]  Hero MotoCorp 2785.3  [ 0.33% ]  Hindustan Unilever L 2612.35  [ -1.04% ]  Hindalco Indus. 433.5  [ -1.49% ]  ICICI Bank 859.3  [ 1.27% ]  IDFC L 62.25  [ 2.81% ]  Indian Hotels Co 277.3  [ 3.43% ]  IndusInd Bank 1078.95  [ 1.60% ]  Infosys 1619.7  [ 1.14% ]  ITC Ltd. 306.3  [ -1.56% ]  Jindal St & Pwr 398.05  [ 0.44% ]  Kotak Mahindra Bank 1854.15  [ 1.46% ]  L&T 1867.25  [ 0.68% ]  Lupin Ltd. 689.9  [ 3.02% ]  Mahi. & Mahi 1265.55  [ -0.15% ]  Maruti Suzuki India 8818  [ -0.69% ]  MTNL 23.7  [ 0.85% ]  Nestle India 19688.45  [ -0.39% ]  NIIT Ltd. 353.75  [ 1.80% ]  NMDC Ltd. 115.75  [ -0.26% ]  NTPC 153.55  [ -1.38% ]  ONGC 132.7  [ -0.86% ]  Punj. NationlBak 33.4  [ 1.21% ]  Power Grid Corpo 222.8  [ -0.25% ]  Reliance Inds. 2590.2  [ 0.32% ]  SBI 524.55  [ 1.95% ]  Vedanta 256.4  [ -0.10% ]  Shipping Corpn. 112.05  [ 5.61% ]  Sun Pharma. 920  [ 0.07% ]  Tata Chemicals 1075.3  [ 0.10% ]  Tata Consumer Produc 773.3  [ -2.13% ]  Tata Motors Ltd. 476.65  [ 0.22% ]  Tata Steel 109.1  [ -0.14% ]  Tata Power Co. 229.45  [ 0.44% ]  Tata Consultancy 3422.45  [ 1.98% ]  Tech Mahindra 1077.15  [ 2.12% ]  UltraTech Cement 6595.35  [ 0.06% ]  United Spirits 784.9  [ 1.08% ]  Wipro 438.4  [ 1.93% ]  Zee Entertainment En 248  [ -0.82% ]  

Company Information

Indian Indices

  • Loading....

Global Indices

  • Loading....

Commodity

  • Loading....

Forex

  • Loading....

ULTRATECH CEMENT LTD.

11 August 2022 | 12:00

Industry >> Cement

Select Another Company

ISIN No INE481G01011 BSE Code / NSE Code 532538 / ULTRACEMCO Book Value (Rs.) 1,747.15 Face Value 10.00
Bookclosure 17/08/2022 52Week High 8269 EPS 254.42 P/E 25.93
Market Cap. 190439.21 Cr. 52Week Low 5157 P/BV / Div Yield (%) 3.78 / 0.58 Market Lot 1.00
Security Type Other

NOTES TO ACCOUNTS

You can view the entire text of Notes to accounts of the company for the latest year
Year End :2022-03 

1. Tangible Assets include assets for which ownership is not in the name of the Company - Gross Block of ' 426.78 Crores (March 31,2021 ' 442.04 Crores).

2. Buildings include ' 12.13 Crores (March 31,2021 ' 12.13 Crores) being cost of Debentures and Shares in a company entitling the right of exclusive occupancy and use of certain premises.

3. Opening Gross Block includes Research and Development Assets (Building, Plant and Equipment, Furniture and Fixtures, Office Equipment and Intangible Assets) of ' 43.49 Crores (March 31,2021 ' 43.19 Crores) and Net Block of ' 20.02 Crores (March 31,2021 ' 21.19 Crores). Addition for the Research and Development Assets during the year is ' 1.55 Crores (March 31,2021 ' 0.30 Crores).

The total cash outflow for leases for year ended March 31, 2022 is ' 159.59 Crores (March 31, 2021 ' 120.71 Crores).

Income from sub leasing of Right to use assets is for the year ended March 31, 2022 is ' 76.39 Crores (March 31, 2021 ' 61.28 Crores).

Impact of Ind AS 116 has resulted in lower expenses in Power and Fuel, Freight and Forwarding and Other Expenses by ' 134.32 Crores (March 31, 2021: ' 115.03 Crores) whereas Finance Costs and Depreciation and Amortisation expenses are higher by ' 72.32 Crores (March 31, 2021: ' 22.08 Crores) and ' 105.76 Crores (March 31,2021: ' 93.95 Crores) respectilvely.

c) Debenture Redemption Reserve (DRR): The Company has issued redeemable non-convertible debentures. Accordingly, the Companies (Share capital and Debentures) Rules, 2014 (as amended), requires the company to create DRR out of profits of the company available for payment of dividend. DRR is required to be created for an amount which is equal to 25% of the value of debentures issued. However, this requirement is no more applicable w.e.f. April 1,2018 as per the amendment in the Companies (Share capital and Debentures) Rules, 2014 vide dated August 16, 2019; accordingly the Company has not made any new addition in the said reserve and accounted the reversal of outstanding reserve linked to payment of specific non-convertible debentures.

The Company has only one class of Equity Shares having a par value of K 10 per share. Each shareholder is eligible for one vote per share held except for Global Depository Receipts. 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, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

d) General Reserve: The Company has transferred a portion of the net profit of the Company before declaring dividend to general reserve pursuant to the earlier provision of Companies Act, 1956. Mandatory transfer to general reserve is not required under the Companies Act, 2013.

e) Shares Options Outstanding Reserve: The Company has three share option schemes under which options to subscribe for the Company’s shares have been granted to certain executives and senior employees. The share-based payment reserve is used to recognise the value of equity-settled share-based payments provided to employees, including key management personnel, as part of their remuneration.

f) Treasury Shares: The Company has formed an Employee Welfare Trust for purchasing Company’s shares to be allotted to eligible employees under Employees Stock Options Scheme, 2018 (ESOS 2018). As per Ind AS 32 - Financial Instruments: Presentation, Reacquired equity shares of the Company are called Treasury Shares and deducted from equity.

g) Cashflow Hedge Reserve: The Company has designated its hedging instruments as cash flow hedges and any effective portion of cashflow hedge is maintained in the said reserve. In case the hedging becomes ineffective, the amount is recognised in the Statement of Profit and Loss.

The Description of the nature and purpose of each reserve within equity is as follows:

a) Capital Reserve: Company’s capital reserve is mainly on account of acquisition of cement business of Larsen & Toubro Ltd., Gujarat Units of Jaypee Cement Corporation Ltd (JCCL) and cement capacities of 21.2 MTPA of Jaiprakash Associates Ltd (JAL) and JCCL, being excess of the net assets acquired over the consideration paid.

b) Securities Premium: Securities premium is credited when shares are issued at premium. It is utilised in accordance with the provisions of the Act, to issue bonus shares, to provide for premium on redemption of shares or debentures, equity related expenses like underwriting costs, etc.

Cash outflows for the above are determinable only on receipt of judgments pending at various forums / authorities.

(b) The Company had filed appeals against the orders of the Competition Commission of India (CCI) dated 31 August 2016 (Penalty of ' 1,449.51 Crores) and 19 January 2017 (Penalty of ' 68.30 Crores). Upon the National Company Law Appellate Tribunal (“NCLAT”) disallowing its appeal against the CCI order dated 31 August 2016, the Company filed an appeal before Hon’ble Supreme Court which has, by its order dated 5 October 2018, granted a stay against the NCLAT order. Consequently, the Company has deposited an amount of ' 144.95 Crores equivalent to 10% of the penalty of ' 1,449.51 Crores. The Company, backed by legal opinions, believes that it has a good case in both the matters and accordingly no provision has been recognised in the financial statements.

(c) Guarantees:

The Company has issued corporate guarantees as under:

In favour of the Banks / Lenders on behalf of some of its Subsidiaries and Joint Venture (JV), as mentioned below, for the purposes of replacing old loans, acquisition financing, working capital and other general corporate purposes:

• UltraTech Nathdwara Cement Limited: ' 350.00 Crores (March 31, 2021 ' 3,050.00 Crores).

• Bhaskarpara Coal Company Limited (JV): ' 1.70 Crores (March 31, 2021 ' 1.70 Crores).

• UltraTech Cement Middle East Investment Limited and its subsidiaries: USD 191.30 Million (Equivalent to ' 1,449.89 Crores) {March 31, 2021 USD 161.30 Million (Equivalent to ' 1,179.24 Crores)}.

(These Corporate Guarantees are issued in different currencies viz. Indian Rupee, USD and UAE Dirham.)

Note 34: Capital and other commitments:

Estimated amount of contracts remaining to be executed on capital account not provided for (net of advances)

' 1,988.69 Crores. (March 31, 2021 ' 2,230.08 Crores).

Note 35

The Supreme Court of India has allowed an appeal filed by the State of Rajasthan in a matter relating to transfer of mining lease in the name of the Company’s wholly owned subsidiary, Gotan Lime Stone Khanij Udyog Private Limited (“GKUPL”) and has directed the State of Rajasthan to frame and notify its policy relating to transfer of mining lease and thereafter pass appropriate order in respect of the mining lease of GKUPL. State Government has notified the new policy related to transfer of new mining lease, based on which the Company has requested the State Government to consider reinstatement of the mines in its favour.

Note 36: Employee Benefits (Ind AS 19):

(A) Defined Benefit Plans:

(a) Gratuity:

The gratuity payable to employees is based on the employee’s service and last drawn salary at the time of leaving the services of the Company and is in accordance with the Rules of the Company for payment of gratuity.

Inherent Risk

The plan is defined benefit in nature which is sponsored by the Company and hence it underwrites all the risks pertaining to the plan. In particular, this exposes the Company to actuarial risk such as adverse salary growth, change in demographic experience, inadequate return on underlying plan assets. This may result in an increase in cost of providing these benefits to employees in future. Since the benefits are lump sum in nature, the plan is not subject to any longevity risks.

(b) Pension:

The Company considers pension for some of its employees at senior management based on the period of service and contribution for the Company. There is no material risk associated with this plan.

(c) Post-Retirement Medical Benefits:

The Company provides post-retirement medical benefits to certain ex-employees who were transferred under the Scheme of arrangement for acquiring Larsen & Toubro cement business and eligible for such benefits from earlier Company. There is no material risk associated with this plan.

(xii) Discount Rate:

The discount rate is based on the prevailing market rates of Indian government securities for the estimated term of obligations.

(xiii) Salary Escalation Rate:

The estimates of future salary increases are considered taking into account inflation, seniority, promotion and other relevant factors.

(xiv) Asset Liability matching strategy:

The money contributed by the Company to the Gratuity fund to finance the liabilities of the plan has to be invested.

The trustees of the plan have outsourced the investment management of the fund to an insurance Company. The insurance Company in turn manages these funds as per the mandate provided to them by the trustees and the asset allocation which is within the permissible limits prescribed in the insurance regulations. Due to the restrictions in the type of investments that can be held by the fund, it is not possible to explicitly follow an asset liability matching strategy.

There is no compulsion on the part of the Company to fully prefund the liability of the Plan. The Company’s philosophy is to fund these benefits based on its own liquidity and the level of underfunding of the plan.

(xv) The Company’s expected contribution during next year is ' Nil. (March 31, 2021 ' Nil).

(d) Provident Fund:

The Company is liable for any shortfall in the fund assets based on the Government specified rate of return. Such shortfall, if any, is recognised in the Statement of Profit and Loss as an expense in the year of incurring the same.

Amount recognized as an expense under the head “Contribution to Provident and other Funds” of Statement of Profit and Loss ' 90.07 Crores (March 31, 2021 ' 88.10 Crores).

The actuary has provided for a valuation and based on the below provided assumptions there is no shortfall as at March 31, 2022 (March 31, 2021: Nil):

(e) Contribution to Other Funds:

Amount recognized as an expense under the head “Contribution to Other Funds” of Statement of Profit and Loss ' 28.62 Crores (March 31,2021 ' 28.47 Crores).

(B) Amount recognized as an expense in respect of Compensated Absences is ' 51.35 Crores {March 31,2021 ' (8.04) Crores}.

(C) Amount recognized as expense for other long-term employee benefits is ' 0.44 Crores (March 31,2021 ' 0.86 Crores).

Terms and Conditions of transactions with Related Parties:

The sales to and purchases from related parties including 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.

The Company‘s inter corporate loan to its subsidiary which is repayable on demand, for the current year the rate of interest is 1 month MCLR. (March 31,2021: 1 month MCLR)

For the year ended March 31,2022, 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.

The weighted average share price at the date of exercise for options was ' 7,024.74 per share (March 31, 2021 ' 5,759.93 per share) and weighted average remaining contractual life for the share options outstanding as at March 31, 2022 was 4.62 years (March 31,2021: 5.10 years).

The weighted average remaining contractual life for SAR is 2.87 years (March 31, 2021: 3.22 years).

The exercise price for outstanding options and SAR is ' 10 per share for RSU’s and ranges from ' 1,965 per share to ' 7,424.70 per share for options.

(D) Fair Valuation:

1,24,616 share options were granted during the year. Weighted Average Fair value of the options granted during the year is ' 3,435.96 per share (March 31, 2021 ' 3,091.60 per share).

The fair value of option has been done by an independent firm of Chartered Accountants on the date of grant using the Black-Scholes Model Binomial Model.

The fair values of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in an orderly transaction in the principal (or most advantageous) market at measurement date under the current market condition regardless of whether that price is directly observable or estimated using other valuation techniques.

The Company has established the following fair value hierarchy that categorizes the values into 3 levels. The inputs to valuation techniques used to measure fair value of financial instruments are:

Level 1: This hierarchy uses quoted (unadjusted) prices in active markets for identical assets or liabilities. The fair value of all bonds which are traded in the stock exchanges is valued using the closing price or dealer quotations as at the reporting date.

Level 2: The fair value of financial instruments that are not traded in an active market (For example traded bonds, over the counter derivatives) is determined using valuation techniques which maximize the use of observable market data and rely as little as possible on company specific estimates. The mutual fund units are valued using the closing Net Asset Value. 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.

The management assessed that cash and bank balances, trade receivables, loans, trade payables, cash credits,

commercial papers and other financial assets and liabilities approximate their carrying amounts largely due to the shortterm maturities of these instruments.

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

(a) The fair values of the quoted investments/units of mutual fund schemes are based on market price/net asset value at the reporting date.

(b) The fair value of interest rate swaps is calculated as the present value of the estimated future cash flows based on observable yield curves and an appropriate discount factor.

(c) The fair value of forward foreign exchange contracts is calculated as the present value determined using forward exchange rates and interest rate curve of the respective currencies.

(d) The fair value of currency swap is calculated as the present value determined using forward exchange rates, currency basis spreads between the respective currencies, interest rate curves and an appropriate discount factor.

(e) The fair value of foreign currency option contracts is determined using the Black Scholes valuation model.

(f) The fair value of the remaining financial instruments is determined using discounted cash flow analysis. The discount rates used is based on management estimates.

The significant unobservable inputs used in the fair value measurement of the fair value hierarchy together with a

quantitative sensitivity analysis as at March 31, 2022 and March 31, 2021 are as shown below:

The Company’s principal financial liabilities, other than derivatives, comprises of borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the Company’s operations. The Company’s principal financial assets, other than derivatives include trade and other receivables, investments and cash and cash equivalents that derive directly from its operations.

The Company’s activities expose it to market risk, liquidity risk and credit risk. The Company’s overall risk management focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the financial performance of the Company. The Company uses derivative financial instruments, such as foreign exchange forward contracts, foreign currency option contracts, principal only swaps, cross currency swaps that are entered to hedge foreign currency risk exposure, interest rate swaps, coupon only swaps to hedge variable interest rate exposure and commodity fixed price swaps to hedge commodity price risks. Derivatives are used exclusively for hedging purposes and not as trading or speculative instruments.

The Company has standard operating procedures and investment policy for deployment of surplus liquidity, which allows investment in debt securities, fixed deposits and mutual fund schemes of debt categories only and restricts the exposure in equity markets.

Compliances of these policies and principles are reviewed by the internal auditors/internal risk management committee on periodical basis.

The Corporate Treasury team updates the Audit Committee on a quarterly basis about the implementation of the above policies. It also updates the Risk Management Committee of the Company on periodical basis about the various risks to the business and status of various activities planned to mitigate the risks.

(I) Market Risk:

Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from a change in the price of a financial instrument. The value of a financial instrument may change as a result of changes in the interest rates, foreign currency exchange rates, commodity prices, equity prices and other market changes that affect market risk sensitive instruments. Market risk is attributable to all market risk sensitive financial instruments including investments and deposits, foreign currency receivables, payables and borrowings.

(A) Foreign Currency Risk:

Foreign currency risk is the risk of impact related to fair value or future cash flows of an exposure in foreign currency, which fluctuate due to changes in foreign exchange rates. The Company’s exposure to the risk of changes in foreign exchange rates relates primarily to the foreign currency borrowings, import of fuels, raw materials and spare parts, capital expenditure, exports of cement and the Company’s net investments in foreign subsidiaries.

When a derivative is entered into for the purpose of being a hedge, the Company negotiates the terms of those derivatives to match the terms of the hedged exposure.

The Company evaluates exchange rate exposure arising from foreign currency transactions. The Company follows established risk management policies and standard operating procedures. It uses derivative instruments like foreign currency swaps, options and forwards to hedge exposure to foreign currency risk.

(B) 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 Company’s borrowing with floating interest rates. For all long-term borrowings with floating rates, the risk of variation in the interest rates is mitigated through interest rate swaps. The Company constantly monitors the credit markets and rebalances its financing strategies to achieve an optimal maturity profile and financing cost.

(B) Cash Flow Hedges

The Company has foreign currency external commercial borrowings / investments and to mitigate the risk of foreign currency and floating interest rates the Company has taken forward contracts, currency options, currency swaps, interest rates swaps and principal only swaps. The Company is following hedge accounting for all the foreign currency borrowings/ investments raised on or after April 01, 2015 based on qualitative approach.

The Company assesses hedge effectiveness based on following criteria:

(i) an economic relationship between the hedged item and the hedging instrument;

(ii) the effect of credit risk; and

(iii) Assessment of the hedge ratio

The Company designates the derivatives to hedge its currency risk and generally applies a hedge ratio of 1:1. The Company’s policy is to match the critical terms of the forward exchange contracts to match with the hedged item.

(C) Commodity price risk management:

Commodity price risk for the Company is mainly related to fluctuations in coal and pet coke prices linked to various external factors, which can affect the production cost of the Company. Since the Energy costs is one of the primary costs drivers, any adverse fluctuation in fuel prices can lead to drop in operating margin. To manage this risk, the Company enters into fixed price swaps/other derivatives for imported coal, enter into long-term supply agreement for pet coke, identifying new sources of supply etc. While fixed price swaps/other derivatives are available in the markets for coal but in case of pet coke no such derivative is available; it has to be procured at spot prices. Additionally, processes and policies related to such risks are reviewed and controlled by senior management and fuel requirement are monitored by the central procurement team.

(II) Credit Risk Management:

Credit risk arises when a customer or counterparty does 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 / investing activities, including deposits with banks/financial institutions, mutual fund investments, and investments in debt securities, foreign exchange transactions and financial guarantees. The Company has no significant concentration of credit risk with any counterparty.

Trade receivables

Trade receivables are consisting 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. Wherever the Company assesses the credit risk as high the exposure is backed by either bank guarantee / letter of credit or security deposits.

Total Trade receivable as on March 31, 2022 is ' 2,706.82 Crores (March 31, 2021 ' 2,285.99 Crores). The Company does not have higher concentration of credit risks to a single customer. A single largest customer has total exposure in sales 2.51% (March 31, 2021: 2.10%) and in receivables 11.6% (March 31, 2021: 10.7%)

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.

As per policy, receivables are classified into different buckets based on the overdue period ranging from 6 months - one year to more than two years. There are different provisioning norms for each bucket which are ranging from 25% to 100%.

Investments, Derivative Instruments, Cash and Cash Equivalent and Deposits with Banks/Financial Institutions

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 rating agencies.

Credit Risk on Derivative Instruments are generally low as Company enters into the Derivative Contracts with the reputed Banks and Financial Institutions.

Investments of surplus funds are made only with approved Financial Institutions / Counterparty. Investments primarily include investment in units of mutual funds, quoted Bonds, Non-Convertible Debentures issued by Government / Semi Government Agencies / PSU Bonds / High Investment grade corporates etc. These Mutual Funds and Counterparties have low credit risk.

Total Non-current and current investments excluding Subsidiaries, Joint Ventures and Associates as on March 31, 2022 is ' 6,114.72 Crores (March 31, 2021 ' 12,022.46 Crores)

Financial Guarantees

The Company has given corporate guarantees amounting to ' 1,801.59 Crores in favour of its subsidiaries and joint ventures (Refer note 33 (c)).

(III) Liquidity risk management:

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 Capital management objective of the Company is to (a) maximise shareholder value and provide benefits to other stakeholders and (b) maintain an optimal capital structure to reduce the cost of capital.

For the purposes of the Company’s capital management, capital/equity includes issued equity share capital, share premium and all other equity.

The Company monitors capital using debt-equity ratio, which is total debt less liquid investments and bank deposits divided by total equity.

In addition, the Company has financial covenants relating to the borrowing facilities that it has taken from the lenders to manage interest coverage service ratio, Debt to EBITDA, etc. which is maintained by the Company.

Note 49: Research and Development

Revenue expenditure on Research and Development included in different heads of expenses in the Statement of Profit and Loss is ' 11.68 Crores. (March 31, 2021 ' 15.25 Crores).

(a) Other Operating Revenues include Incentives against capital investments, under State Investment Promotion Scheme of ' 456.43 Crores (March 31, 2021 ' 233.03 Crores).

(b) Sales Tax deferment loan granted under State Investment Promotion Scheme has been considered as a government grant and the difference between the fair value and nominal value as on date is recognized as an income. Accordingly, an amount of ' 74.44 Crores (March 31, 2021: 48.83 Crores) has been recognized as an income. Every year change in fair value is accounted for as an interest expense.

(c) Repairs and maintenance are net of subsidy received, under State Investment Promotion Scheme of ' 0.97 Crores. (March 31, 2021 ' 0.37 Crores).

(d) Cost of materials consumed are net of grants received towards royalty expense amounting to ' 13.26 Crores (March 31, 2021 ' 12.26 Crores)

Note 52: Assets held for Disposal (Ind AS 105):

The Company has identified certain assets like Land, Aggregate Mines, Coal Washery etc. which are available for sale

in its present condition. The Company is committed to plan the sale of asset and an active programme to locate a buyer

and complete the plan have been initiated. The Company expects to dispose off these assets in the due course.

Note 53: Revenue (Ind AS 115)

(A) The Company is primarily in the Business of manufacture and sale of cement and cement related products. The product shelf life being short, all sales are made at a point in time and revenue recognised upon satisfaction of the performance obligations which is typically upon dispatch/ delivery. The Company has a credit evaluation policy based on which the credit limits for the trade receivables are established, the Company does not give significant credit period resulting in no significant financing component. The Company, however, has a policy for replacement of the damaged goods.

The above information has been determined to the extent such parties have been identified on the basis of information available with the Company and the same has been relied upon by the auditors.

Note 56: COVID-19 (Global Pandemic)

In the face of COVID - 19 pandemic the Company’s operations across locations were stopped in line with the Government directives. This had an adverse impact on revenues during the quarter ended June 30, 2020, as expected.

Even before the formal announcement of the national lockdown, keeping in mind the well-being of its employees, the Company enabled ‘work from home’ for its employees and taken all necessary steps to ensure a seamless transition to the new ways of working for employees, while at the same time ensuring business continuity. The Company was in continuous engagement with all its stakeholders through various digital platforms. Critical Response Teams were set up across the organisation to plan scenarios and respond to the rapidly changing situation.

With the Government allowing select activities to operate, the Company gradually resumed operations at its establishments after obtaining necessary government approvals and ensuring compliance with the statutory guidelines in line with the standard operating procedure (SOP) announced by the Ministry of Home Affairs, Government of India.

With the easing of lockdown, operations gradually stabilised. The Company has the unique advantage of being able to cater to demand in different parts of the country.

The Company’s recovery from the Covid-19 led disruption of the economy has been rapid. It Company managed the crisis with a sharp focus on operational efficiencies. It was able to recover the carrying amount of all its inventories, receivables and loans in the ordinary course of business. It was able to service all its debt obligations as per schedule, with its capital and financial resources remaining entirely protected and its liquidity position adequately covered.

(i) As on March 31, 2022 there is no untilised amounts in respect of any issue of securities and long term borrowings from banks and financial institutions. The borrowed funds have been utilised for the specific purpose for which the funds were raised.

(ii) The Company do not have any transactions with struck off companies.

(iii) The Company do not have any charges or satisfaction, which is yet to be registered with Registrar of Companies beyond the statutory period.

(iv) The Company is in compliance with the number of layers prescribed under clause (87) of section 2 of the Companies Act read with the Companies (Restriction on number of Layers) Rules, 2017.

(v) The Company do not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

(vi) The Company have not traded or invested in Crypto currency or Virtual Currency during the financial year.

(vii) The Company have not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(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

(viii) The Company have not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

(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

(ix) The Company have not 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

The figures for the previous periods have been regrouped / rearranged wherever necessary to conform to the current periods classification in order to comply with the requirements of the amended Schedule III to the Companies Act, 2013 effective 1st April, 2021.