Bheema Cements Ltd. के अकाउंट के लिये नोट

Mar 31, 2025

8. Provisions and contingent liabilities

A provision is recognized if, as a result of a past event, the Company has a present legal or constructive
obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be
required to settle the obligation. If the effect of the time value of money is material, provisions are
determined by discounting the expected future cash flows at a pre-tax rate that reflects current market
assessments of the time value of money and the risks specific to the liability. When discounting is used, the
increase in the provision due to the passage of time is recognized as a finance cost.

The amount recognized as a provision is the best estimate of the consideration required to settle the present
obligation at reporting date, taking into account the risks and uncertainties surrounding the obligation.

When some or all of the economic benefits required to settle a provision are expected to be recovered from
a third party, the receivable is recognized as an asset if it is virtually certain that reimbursement will be
received and the amount of the receivable can be measured reliably. The expense relating to a provision is
presented in the statement of profit and loss net of any reimbursement.

Contingent liabilities are possible obligations that arise from past events and whose existence will only be
confirmed by the occurrence or non-occurrence of one or more future events not wholly within the control
of the Company.

Where it is not probable that an outflow of economic benefits will be required, or the amount cannot be
estimated reliably, the obligation is disclosed as a contingent liability, unless the probability of outflow of
economic benefits is remote. Contingent liabilities are disclosed on the basis of judgment of the
management/independent experts.

These are reviewed at each balance sheet date and are adjusted to reflect the current management estimate.

9. Foreign currency transactions and translation

Transactions in foreign currencies are initially recorded at the functional currency spot rates at the date the
transaction first qualifies for recognition.

Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency
spot rates of exchange at the reporting date. Exchange differences arising on settlement or translation of
monetary items are recognized in profit or loss in the year in which it arises.

Non-monetary items are measured in terms of historical cost in a foreign currency are translated using the
exchange rate at the date of the transaction.

10. Revenue

Company’s revenues arise primarily from sale of goods, apart from nominal other income.

Revenue from other income comprises interest from banks, employees, contractors etc., dividend from
investments, sale of scrap, other miscellaneous income, etc.

10.1 Revenue from sale of goods

Revenue from the sale of goods is measured at the fair value of the consideration received or receivable.

Revenue is recognized when the significant risks and rewards of ownership have been transferred to
the buyer, recovery of the consideration is probable, the associated costs can be estimated reliably, there
is no continuing management involvement, and the amount of revenue can be measured reliably.

Revenue from sale of goods includes an accrual for sales delivered to customers but not yet billed i.e.
unbilled revenue.

10.2 Revenue from services

Revenue from services if any, rendered is recognized in profit or loss in proportion to the stage of
completion of the transaction at the reporting date. The stage of completion is assessed by reference to
actual progress/technical assessment of work executed, in line with the terms of the respective
consultancy contracts. Claims for reimbursement of expenses are recognized as other income, as per
the terms of the consultancy service contracts.

10.3Other income

Interest income is recognized, when no significant uncertainty as to measurability or collectability
exists, on a time proportion basis taking into account the amount outstanding and the applicable interest
rate, using the effective interest rate method (EIR).

Scrap is accounted for as and when sold.

Revenue from rentals and operating leases is recognized on an accrual basis in accordance with the
substance of the relevant agreement.

For debt instruments measured either at amortized cost or at fair value through other comprehensive
income (OCI), interest income is recorded using the EIR. EIR is the rate that exactly discounts the
estimated future cash payments or receipts over the expected life of the financial instrument or a shorter
period, where appropriate, to the gross carrying amount of the financial asset or to the amortized cost
of a financial liability.

When calculating the EIR, the Company estimates the expected cash flows by considering all the
contractual terms of the financial instrument (for example, prepayment, extension, call and similar
options) but does not consider the expected credit losses.

Interest income is included in other income in the statement of profit and loss.

Dividend income is recognized in profit or loss on the date that the Company’s right to receive payment
is established, which in the case of quoted securities is the ex-dividend date.

11. Employee Benefits

The Company has the following employee benefit plans:

11.1Provident fund:

Provident fund is a defined contribution plan covering eligible employees. The Company and the
eligible employees make a monthly contribution to the provident fund maintained by the Regional
Provident Fund Commissioner equal to the specified percentage of the basic salary. The contributions
to the provident fund are charged to the statement of profit and loss for the year when the contributions
are due. The Company has no obligation, other than the contribution payable to the provident fund.

11.2 Gratuity

The Company has a scheme for payment of gratuity to all its employees as per provisions of the
Payment of Gratuity Act 1972. The Company provides for period end liability using the projected unit
credit method as per the actuarial valuation carried out by the Independent actuary. The cost of
providing benefit under gratuity plan are charged to the statement of profit and loss, except for there

measurements, comprising of actuarial gains and losses which are recognized in full in the statement
of other comprehensive income in the reporting period in which they occur.

11.3 Leave Encashment

The Company has a scheme for payment of leave encashment to all eligible employees. The Company
provides for period end liability using the projected unit credit method as per the actuarial valuation
carried out by the independent actuary. The cost of providing benefit under leave encashment is
charged to the statement of profit and loss, on year-to-year basis.

12. Income tax

Income tax expense comprises current and deferred tax. Current tax expense is recognized in profit or loss
except to the extent that it relates to items recognized directly in other comprehensive income or equity, in
which case it is recognized in OCI or equity.

Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or
substantively enacted and as applicable at the reporting date, and any adjustment to tax payable in respect
of previous years.

Deferred tax is recognized using the balance sheet method, providing for temporary differences between
the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for
taxation purposes. Deferred tax is measured at the tax rates that are expected to be applied to temporary
differences when they reverse, based on the laws that have been enacted or substantively enacted by the
reporting date.

Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax
liabilities and assets, and they relate to income taxes levied by the same tax authority.

Deferred tax is recognized in profit or loss except to the extent that it relates to items recognized directly in
OCI or equity, in which case it is recognized in OCI or equity.

A deferred tax asset is recognized to the extent that it is probable that future taxable profits will be available
against which the temporary difference can be utilized. Deferred tax assets are reviewed a teach reporting
date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized.

Additional income taxes that arise from the distribution of dividends are recognized at the same time that
the liability to pay the related dividend is recognized.

13. Leases

13.1As lessee

Accounting for finance leases

Leases of property, plant and equipment where the Company, as lessee has substantially all risks and
rewards of ownership are classified as finance lease. On initial recognition, assets held under finance
leases are recorded as property, plant and equipment and the related liability is recognized under
borrowings. At inception of the lease, finance leases are recorded at amounts equal to the fair value of
the leased asset or, if lower, the present value of the minimum lease payments. Minimum lease
payments made under finance leases are apportioned between the finance expense and the reduction of
the outstanding liability.

The finance expense is allocated to each period during the lease term so as to produce a constant
periodic rate of interest on the remaining balance of the liability.

Accounting for operating leases

Leases in which a significant portion of the risks and rewards of ownership are not transferred to the
Company as lessee are classified as operating lease. Payments made under operating leases are
recognized as an expense over the lease term. Lease incentives received are recognized as an integral
part of the total lease expense, over the term of the lease.

13.2 As lessor

At inception of an arrangement, the Company determines whether such an arrangement is or contains
a lease. A specific asset is subject of a lease if fulfillment of the arrangement is dependent on the use of
that specified asset. An arrangement conveys the right to use the asset if the arrangement conveys to
the customer the right to control the use of the underlying asset. Arrangements that do not take the legal
form of a lease but convey rights to customers/suppliers to use an asset in return for a payment or a
series of payments are identified as either finance leases or operating leases.

Accounting for finance leases

Where the Company determines a long term PPA to be or to contain a lease and where the off taker has
the principal risk and rewards of ownership of the power plant through its contractual arrangements
with the Company, the arrangement is considered a finance lease. Capacity payments are apportioned
between capital repayments relating to the provision of the plant, finance income and service income.
The finance income element of the capacity payment is recognized as revenue, using a rate of return
specific to the plant to give a constant periodic rate of return on the net investment in each period. The
service income element of the capacity payment is the difference between the total capacity payment
and the amount recognized as finance income and capital repayments and recognized as revenue as it
is earned. The amounts due from lessees under finance leases are recorded in the balance sheet as
financial assets, classified as finance lease receivables, at the amount of the net investment in the lease.

Accounting for operating leases

Where the Company determines a long term PPA to be or to contain a lease and where the Company
retains the principal risks and rewards of ownership of the power plant, the arrangement is considered an
operating lease. For operating leases, the power plant is capitalized as property, plant and equipment
and depreciated over its economic life. Rental income from operating leases is recognized on a straight
line basis over the term of the arrangement.

14. Impairment of non-financial assets

The carrying amounts of the Company’s non-financial assets are reviewed at each reporting date to
determine whether there is any indication of impairment considering the provisions of Ind AS
36‘Impairment of Assets’. If any such indication exists, then the asset’s recoverable amount is estimated.

The recoverable amount of an asset or cash-generating unit is the higher of its fair value less costs to
disposal and its value in use. In assessing value in use, the estimated future cash flows are discounted to
their present value using a pre-tax discount rate that reflects current market assessments of the time value
of money and the risks specific to the asset. For the purpose of impairment testing, assets that cannot be
tested individually are grouped together into the smallest group of assets that generates cash inflows from
continuing use that are largely independent of the cash inflows of other assets or groups of assets (the “cash¬
generating unit”, or “CGU”).

An impairment loss is recognized if the carrying amount of an asset or its CGU exceeds its estimated
recoverable amount. Impairment losses are recognized in profit or loss. Impairment losses recognized in
respect of CGUs are reduced from the carrying amounts of the assets of the CGU.

Impairment losses recognized in prior periods are assessed at each reporting date for any indications that
the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the
estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that
the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of
depreciation or amortization, if no impairment loss had been recognized.

15. Operating segments

In accordance with Ind AS 108, the operating segments used to present segment information are identified
on the basis of internal reports used by the Company’s Management to allocate resources to the segments
and assess their performance. The Board of Directors is collectively the Company’s ‘Chief Operating
Decision Maker’ or ‘CODM’ within the meaning of Ind AS 108. The indicators used for internal reporting
purposes may evolve in connection with performance assessment measures put in place.

Segment results that are reported to the CODM include items directly attributable to a segment as well as
those that can be allocated on a reasonable basis. Unallocated items comprise mainly corporate expenses,
finance expenses and income tax expenses.

Revenue directly attributable to the segments is considered as segment revenue. Expenses directly
attributable to the segments and common expenses allocated on a reasonable basis are considered as
segment expenses.

Segment capital expenditure is the total cost incurred during the period to acquire property, plant and
equipment, and intangible assets other than goodwill.

Segment assets comprise property, plant and equipment, intangible assets, trade and other receivables,
inventories and other assets that can be directly or reasonably allocated to segments. For the purpose of
segment reporting for the year, property, plant and equipment have been allocated to segments based on the
extent of usage of assets for operations attributable to the respective segments.

Segment assets do not include investments, income tax assets, capital work in progress, capital advances,
corporate assets and other current assets that cannot reasonably be allocated to segments.

Segment liabilities include all operating liabilities in respect of a segment and consist principally of trade
and other payables, employee benefits and provisions. Segment liabilities do not include equity, income tax
liabilities, loans and borrowings and other liabilities and provisions that cannot reasonably be allocated to
segments.

16. Dividends

Dividends and interim dividends payable to a Company’s equity shareholders are recognized as changes in
equity in the period in which they are approved by the shareholders’ meeting and the Board of Directors
respectively.

Dividends payable on Compulsorily Redeemable Preference Shares is recognized as a liability in
accordance with applicability of Ind AS 32.

17. Material prior period errors

Material prior period errors are corrected retrospectively by restating the comparative amounts for the prior
periods presented in which the error occurred. If the error occurred before the earliest period presented, the
opening balances of assets, liabilities and equity for the earliest period presented, are restated.

18. Earnings per share

Basic earnings per equity share are computed by dividing the net profit or loss attributable to equity
shareholders of the Company by the weighted average number of equity shares outstanding during the
financial year.

Diluted earnings per equity share is computed by dividing the net profit or loss attributable to equity
shareholders of the Company by the weighted average number of equity shares considered for deriving
basic earnings per equity share and also the weighted average number of equity shares that could have been
issued upon conversion of all dilutive potential equity shares. Basic and diluted earnings per equity share
are also computed using the earnings amounts excluding the movements in regulatory deferral account
balances.

19. Cash flow statement

Cash flow statement is prepared in accordance with the indirect method prescribed in Ind AS 7‘Statement
of Cash Flows’.

20. Financial instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability
or equity instrument of another entity.

20.1 Financial assets

Initial recognition and measurement

All financial assets are recognized initially at fair value plus, in the case of financial assets not recorded
at fair value through profit or loss, transaction costs that are attributable to the acquisition or issue of
the financial asset.

Subsequent measurement

Debt instruments are measured at amortized cost/FVTOCI/FVTPL, in accordance with Ind AS 109.

Equity investments in entities other than subsidiaries and joint ventures are measured at fair
value(either FVTPL or FVTOCI, in accordance with principles enshrined in Ind AS 109.

Equity investments in subsidiaries and joint ventures are measured at cost.

De Recognition

A financial asset (or, where applicable, a part of a financial asset or part of a Company of similar
financial assets) is primarily de recognized (i.e. removed from the Company’s balance sheet) when:

• The rights to receive cash flows from the asset have expired; or

• The Company has transferred its rights to receive cash flows from the asset or has assumed
an obligation to pay the received cash flows in full without material delay to a third party
under a ‘pass-through’ arrangement and either (a) the company has transferred substantially
all the risks and rewards of the asset, or (b) the Company has neither transferred nor retained
substantially all the risks and rewards of the asset, but has transferred control of the asset.

Impairment of financial assets

In accordance with Ind AS 109, the Company applies expected credit loss (ECL) model for
measurement and recognition of impairment loss on the following financial assets and credit risk
exposure:

(a) Financial assets that are debt instruments, and are measured at amortized cost e.g., loans, debt

(b) securities, deposits, trade receivables and bank balance.

(c) Financial assets that are debt instruments and are measured as at FVTOCI.

(d) Lease receivables under Ind AS 17.

(e) Trade receivables under Ind AS 18.

(f) Loan commitments which are not measured as at FVTPL.

(g) Financial guarantee contracts which are not measured as at FVTPL.

For recognition of impairment loss on other financial assets and risk exposure, the Company
determines that whether there has been a significant increase in the credit risk since initial recognition.
If credit risk has not increased significantly, 12 month ECL is used to provide for impairment loss.
However, if credit risk has increased significantly, lifetime ECL is used. If, in a subsequent period,
credit quality of the instrument improves such that there is no longer a significant increase in credit risk
since initial recognition, then the entity reverts to recognizing impairment loss allowance based on
12-month ECL.

20.2 Financial liabilities

Initial recognition and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through
profit or loss, borrowings, payables, or as derivatives designated as hedging instruments in an effective
hedge, as appropriate. All financial liabilities are recognized initially at fair value and, in the case of
borrowings and payables, net of directly attributable transaction costs. The Company’s financial
liabilities include trade and other payables, borrowings including bank overdrafts, financial guarantee
contracts and derivative financial instruments.

Subsequent measurement

The measurement of financial liabilities depends on their classification, as described below: Financial
liabilities are subsequently measured either at amortized cost or fair value through profit or loss, in
accordance with principles enshrined in Ind AS 109.

Derecognition

A financial liability is derecognized when the obligation under the liability is discharged or cancelled
or expires. When an existing financial liability is replaced by another from the same lender on
substantially different terms, or the terms of an existing liability are substantially modified, such an
exchange or modification is treated as the de recognition of the original liability and the recognition
of a new liability. The difference in the respective carrying amounts is recognized in the statement of
profit or loss.

21. Use of estimates and management judgments

The preparation of financial statements requires management to make judgments, estimates and
assumptions that may impact the application of accounting policies and the reported value of assets,
liabilities, income, expenses and related disclosures concerning the items involved as well as contingent
assets and liabilities at the balance sheet date. The estimates and management’s judgments are based on
previous experience and other factors considered reasonable and prudent in the circumstances. Actual
results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates
are recognized in the period in which the estimates are revised and in any future periods affected.

In order to enhance understanding of the financial statements, information about significant areas of
estimation, uncertainty and critical judgments in applying accounting policies that have the most significant
effect on the amounts recognized in the financial statements is as under:

(a) Useful life of property, plant and equipment

The estimated useful life of property, plant and equipment is based on a number of factors including the
effects of obsolescence, demand, competition and other economic factors (such as the stability of the
industry and known technological advances) and the level of maintenance expenditures require to obtain
the expected future cash flows from the asset.

Useful life of the assets is determined in accordance with Schedule II of the Companies Act, 2013.The
Company reviews at the end of each reporting date the useful life of property, plant and equipment, and are
adjusted prospectively, if appropriate.

(b) Recoverable amount of property, plant and equipment

The recoverable amount of plant and equipment is based on estimates and assumptions regarding in
particular the expected market outlook and future cash flows associated. Any changes in the se assumptions
may have a material impact on the measurement of the recoverable amount and could result in impairment.

(c) Post-employment benefit plans

Employee benefit obligations are measured on the basis of actuarial assumptions which include mortality
and withdrawal rates as well as assumptions concerning future developments in discount rates, the rate of
salary increases and the inflation rate. The Company considers that the assumptions used to measure its
obligations are appropriate and documented. However, any change in these assumptions may have a
material impact on the resulting calculations.

(d) Revenues

The Company records revenue from sale of goods as per principles enunciated under Ind AS 18.

(e) Leases not in legal form of lease

Significant judgment is required to apply lease accounting rules under Appendix C to Ind AS 116
‘Determining whether an arrangement contains a lease’. In assessing the applicability to arrangements
entered into by the Company, management has exercised judgment to evaluate the right to use the
underlying asset, substance of the transactions including legally enforceable agreements and other
significant terms and conditions of the arrangements to conclude whether the arrangement needs the criteria
under Appendix C to Ind AS 116.

(f) Assets held for sale

Significant judgment is required to apply the accounting of non-current assets held for sale under Ind AS
105 ‘Non Current Assets Held for Sale and Discontinued Operations’. In assessing the applicability,
management has exercised judgment to evaluate the availability of the asset for immediate sale,
management’s commitment for the sale and probability of sale within one year to conclude if their carrying
amount will be recovered principally through a sale transaction rather than through continuing use.

(g) Provisions and contingencies

The assessments undertaken in recognizing provisions and contingencies have been made in
accordance with Ind AS 37, ‘Provisions, Contingent Liabilities and Contingent Assets’. The evaluation of

the likelihood of the contingent events has required best judgment by management regarding the probability
of exposure to potential loss. Should circumstances change following unforeseeable developments, this
likelihood could alter.

(h) Impairment test of non-financial assets

The recoverable amount of investment in joint ventures is based on estimates and assumptions regarding in
particular the future cash flows associated with the operations of the investee company. Any changes in
these assumptions may have a material impact on the measurement of the recoverable amount and could
result in impairment.

1. Movements in equity share capital:

• The share capital i.e, 55,70,35,600/- of the Company shall be reduced to 2 Equity shares of Rs. 10 each ( i.e, 1
Equity share to the promoter group and 1 Equity share to public and individuals without any consideration payable
to the existing shareholders adhering to the provisions of Companies Act and SEBI Act as mentioned in the Order
dated 11.02.2020 by the Hon’ble NCLT, Hyderabad.

2. Terms/rights attached to equity shares

The Company has only one class of shares referred to as equity shares having a par value of Rs 10 each.Each holder
of the equity share, as reflected in the records of the Company as of the date of the shareholder meeting, is entitled
to one vote in respect of each share held for all matters submitted to vote in the shareholder meeting.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the
remaining assets of the Company after distribution of all preferential amounts in proportion to the number of equity
shares held by the shareholders.

In terms of the Ind AS 108 relating to “Segment Reporting”, the company operated only in Cement business segments during the
year and operates only in one geographical segment. Considering the source and nature of risks and returns the business segment will
be the primary segment for this purpose and there are no secondary segments. Consequently, in view of the management based on
control purposes, there are no reportable secondary segments in terms of the AS and hence the requirements there-under are not
applicable to the company for the year.

19. Related Party Transactions

The Company has entered with related party transactions during the year are disclosed in order to provide transparency on its financial
position and financial performance may be affected with related parties, conducted on arm’s length basis.

a. Current Year Taxation

The Company is not liable to pay any current taxes on account of current year losses, brought forward losses and unabsorbed
depreciation.

b. Minimum Alternate Tax (MAT)

The Company is not liable to pay any MAT for the current year as the Company does not have any book profits for the year.

23. Confirmation of Balances

The balances of Loans including deposits and advances are subject to confirmation from and reconciliation with the relevant parties

as on the date of balance sheet date. Any difference arising on reconciliation would be accounted in the year in which such

reconciliation is completed.

24. The promoters of the company has made the offer for sale of 48,91,500 shares between 04^th July 2022 to 05^th July 2022 and 26^th

July 2022 to 27^th July 2022 and realised Rs. 36,5126,549/- and the same is used for the business of the company,

25. Additional Regulatory Information

i. The title deeds, comprising all the immovable properties of land and buildings which are freehold, are held in the name of the
Company as at the balance sheet date.

ii. The Company has not revalued its Property, Plant and Equipment since the Company has adopted cost model as its accounting
policy to an entire class of Property, Plant and Equipment in accordance with Ind AS 16.

iii. The Company has not revalued its Intangible Asset since the Company has adopted cost model as its accounting policy to an
entire class of Intangible Asset in accordance with Ind AS 38.

iv. The Company has granted loans or advances in the nature of loans to promoters, directors, KMPs and other related parties
that are repayable on demand or without specifying any terms or period of repayment:

v. No Proceedings are initiated or are pending against the company for holding any benami property under the Benami

vi. The company has no borrowings from banks or financial institutions on the basis of security of current assets.

vii. The Company is not declared as willful defaulter by any bank or financial institution or other lenders.

viii. The company did not have any transaction with Companies struck off under Section 248 of Companies Act,2013 or section
560 of companies Act, 1956 considering the information available with the company.

ix. There are no charges or satisfactions yet to be registered with ROC beyond the statutory period by the company.

*Working capital changes in the company as a part of on-going re-structuring of business plans

“Increase in year-on-year losses incurred by the company resulting in a negative impact on the equity i.e., shareholder’s
funds

***Due to Increase in losses in the current year, there is a change in Return on Capital Employed.

xi. There are no Scheme of Arrangements approved by the Competent Authority in terms of sections 230 to 237 of the Companies
Act, 2013 during the year.

xii. To the best company’s knowledge and belief, other than as disclosed in the notes to accounts, the company has not advanced
or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of funds) to any other
person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding (whether recorded in writing or
otherwise) that the Intermediary shall (i) 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 (ii) provide any guarantee, security or the like
to or on behalf of the Ultimate Beneficiaries.

xiii. To the best company’s knowledge and belief, other than as disclosed in the notes to accounts, the company has not received
any fund from any other person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether
recorded in writing or otherwise) that the company shall (i) 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 (ii) provide any
guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

xiv. The Company does not have any transactions which are not recorded in the books of accounts that has been surrendered or

xv. The company is not covered under the provisions of section 135 of the Companies Act, 2013.

xvi. The Company did not trade or invest in Crypto Currency or virtual currency during the financial year. Hence, disclosures
relating to it are not applicable.

26. Previous year’s figures have been regrouped where necessary to conform to current year’s classification.

27. Figures have been rounded off to lakhs and decimals thereof.

SIGNATURE TO NOTES 1 To 30

As per our report of even date attached For and on Behalf of The Board

Bheema Cements Limited

Sd/- Sd/-

Tadimalla Raja kishore Kandula Prasanna Sai Raghuveer

For P.Murali& Co., ^{Director Mana}gⁱⁿg ^Director

Chartered Accountants ^DIN: 02091671 DIN:07063368

FRN: 007257S

Sd/- Sd/-

^Sd/- Tadimalla Uma RVSSN Varma

^{M V Joshi} Chief Financial Officer Chief Executive Officer

Partner

M.No: 020085

UDIN: 25024784BMIXTV8549 , ,

Anshul Singhai
Company Secretary

Place: Hyderabad M.No: A55037

Date: 30.05.2025

---

Mar 31, 2013

I. Contingent Liabilities not provided for:

a) Bank guarantees given for Rs.137.47 (Previous Year Rs. 37.33)

b) Estimated Amount of Contracts remaining to be executed on capital account and not provided for Rs.25.00 (Previous Year Rs.809.74)

c) Claims against the Company not acknowledged as debts: Rs. 31.56 (Previous Year Rs. 31.56) d) Arrears of fixed cumulative Dividend is Rs 98.68 (Previous Year Rs. 23.86)

II. Pursuant to sanctioning of a Debt Restructuring package in terms of CDR LOA , the company has entered into a Master Restructuring Agreement (MRA) with all bankers during the FY 2011-12. In terms of the MRA, the Bankers have restructured and rescheduled the existing term loans and other facilities and their terms of repayment. Further the company was also sanctioned fresh term loans, which were fully drawn and utilized towards the completion of the expansion project. The breakup of such loans and the particulars of the terms and conditions of payment of interest and repayment of loans are given in Note No. 4.

III. During the year the company completed its expansion project and commenced production from the expanded project. The date of commencement was 31/03/2013. Accordingly the expenditure incurred on the project upto that date Rs.27,575.22, including pre-operative expenditure and interest during construction period, had been capitalized and included in fixed assets under appropriate heads. The preoperative expenditure Rs.530.92 relatable to the project incurred upto the date and the Interest on the loans borrowed for expansion attributable to the period upto the date had been allocated to various fixed assets on pro- rata basis. The depreciation has been provided accordingly.

IV. REVALUATION AND ACCOUNTING OF MINERAL DEPOSITS AND RIGHTS:

The management had revalued and accounted the value in respect of mineral deposits and mining rights, during the earlier financial year, based on an estimate of the mineral quantities by M/s. C.C.Geo Engineering Consultants (P) Ltd. and of the realizable value by M/s. G.S.Sekhar, Chartered Accountants. According to the accounting policy adopted in this regard, during that year, the amount so revalued and included in the Fixed Assets is Rs.10,725.59 on account of Mineral Deposits and Rs.2,933.41 on account of Mining Rights totaling to Rs.13,659.00 During the year an amount of Rs.728.32 (previous year Rs.728.32) has been provided as depreciation and an amount equal to such depreciation has been with drawn from the Mineral Capitalization Reserve.

V. SEGMENT REPORTING:

In terms of the Accounting Standard 17 relating to "Segment Reporting" , the company operated only in Cement business segments during the year and operates only in one geographical segment viz. India. Considering the source and nature of risks and returns the business segment will be the primary segment for this purpose and there are no secondary segments. Consequently, in view of the management based on control purposes, there are no reportable secondary segments in terms of the AS and hence the requirements there-under are not applicable to the company for the year.

VI. RELATED PARTY TRANSACTIONS:

The Company has no related parties other than the key management personnel and relatives of such personnel in terms of Accounting Standard 18, in respect of the related party disclosure. The company paid remuneration to the Chairman, Managing Director, and Whole time Director among the key management personnel of Rs.24.00 each (Previous Year of Rs. 24.00 each) respectively. The company has no related party transactions with the relatives of key management personnel. In addition, the Company has paid Rs.2.00 (Previous Year Rs.1.44) as Directors Sitting fee to all the Directors.

VII. DEFERRED TAXATION:

Deferred Tax Liability included in the Balance Sheet comprises the following:

VIII. HOUSING SUBSIDY:

The Company has received a sum of Rs.10.75 from Government of India during earlier years for the purpose of constructing 50 tenements for housing to its personnel in its Limestone Mines. The Company has entered into an agreement with Government of India for a period of 20 years.

IX. The company has not received the required information from the suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006. Hence disclosures, if any, relating to amounts unpaid as at the period end together with interest paid/payable as required under the said Act have not been made.

X. REALIZATION OF ASSETS:

The Board is of the opinion that the Assets other than Fixed Assets have a value on realization in the ordinary course of business at least to the amount at which they are stated.

XI. Consumption of Raw Materials and value of Inventories includes Royalty and other levies paid to Government to the extent of Rs. 293.38 (previous year Rs. 233.57).

XII. Previous Year figures have been regrouped wherever necessary to conform to the groupings adopted in these accounts.

XIII. The amounts except the Share data and quantitative information have been rounded off to the nearest Lakh rupees and fraction thereof up to two decimals.

---

Mar 31, 2012

1) The Term Loans from banks, of Rs.17,326.41 lakhs, out of which Rs.14,430.17 Lakhs carries an interest rate @ 13.25% (Part of the interest @ 9% per annum till 31-03-2013 and @ 10% per annum during 01-04- 2013 to 31-03-2016 would be paid on due dates on cash basis and the balance of 4.25% per annum up to 31-03-2013 and 3.25% per annum of interest from 01-04-2013 to 31-03-2016 will be capitalized into equity shares in case of ICICI Bank and United Bank of India and other lenders CRPS (Zero Coupon) will be allocated and be redeemable after 2020) and the loan is repayable in 31 structured quarterly installments commencing from 30-09-2012 to 31-03-2020 with moratorium of two years from 01-07-2010 to 30-06-2012 and balance of Rs. 2,896.24 Lakhs carries an interest rate of @ 13.25% (Part of the interest @ 10% per annum during 01-04-2011 to 31-03-2016 would be paid on due dates on cash basis and the balance of 3.25% per annum up to 31-03-2016 will be capitalized into CRPS (Zero Coupon) will be allocated and be redeemable after 2020) and the loan is repayable in 28 structured quarterly installments commencing from 30.06.2013 to 31-03-2020 with a moratorium from the date of disbursement to 31-03- 2013.

All the aforementioned term loans are secured by equitable mortgage by deposit of title deeds by creating First Pari-Passu charge on immovable properties and second Pari-Passu charge by hypothecation of all current assets both present and future subject to First Pari-Passu charge on current assets infavour of companies bankers for working capital and also guaranteed by Promoter Directors in their individual capacities and also by pledge of 1,27,01,781 shares belonging to promoters as additional security.

I. Contingent Liabilities not provided for:

a) Bank guarantees given for Rs.37.33 (Previous Year Rs. 50.70)

b) Estimated Amount of Contracts remaining to be executed on capital account and not provided for Rs.809.74 (Previous Year Rs.3,456.00)

c) Claims against the Company not acknowledged as debts: Rs. 31.56 (Previous Year Rs. 31.56)

d) Arrears of fixed cumulative Dividend is Rs23.86 (Previous Year Rs. NIL)

II. Pursuant to sanctioning of a Debt Restructuring package in terms of CDR LOA during the previous year, the company has entered into a Master Restructuring Agreement (MRA) with all bankers during the current year. In terms of the MRA, the Bankers have restructured and rescheduled the existing term loans and other facilities and their terms of repayment. Further the company has also been sanctioned fresh term loans, a major portion of which has been released, to complete the expansion project. The breakup of such loans and the particulars of the term and conditions of payment of interest and repayment of loans are given in Note No. 4.

III. REVALUATION AND ACCOUNTING OF MINERAL DEPOSITS AND RIGHTS:

The management had revalued and accounted the value in respect of mineral deposits and mining rights, during the earlier financial year, based on an estimate of the mineral quantities by M/s. C.C.Geo Engineering Consultants (P) Ltd. and of the realizable value by M/s. G.S.Sekhar, Chartered Accountants. According to the accounting policy adopted in this regard, during that year, the amount so revalued and included in the Fixed Assets is Rs. 10,725.59 on account of Mineral Deposits and Rs. 2,933.41 on account of Mining Rights totaling to Rs. 13,659.00 During the year an amount of Rs.728.32 (previous year Rs.728.32) has been provided as depreciation and an amount equal to such depreciation has been with drawn from the Mineral Capitalization Reserve.

IV. SEGMENT REPORTING:

In terms of the Accounting Standard 17 relating to "Segment Reporting", the company operated only in Cement business segments during the year and operates only in one geographical segment viz. India. Considering the source and nature of risks and returns the business segment will be the primary segment for this purpose and there are no secondary segments. Consequently, in view of the management based on control purposes, there are no reportable secondary segments in terms of the AS and hence the requirements there-under are not applicable to the company for the year.

V. RELATED PARTY TRANSACTIONS:

The Company has no related parties other than the key management personnel and relatives of such personnel in terms of Accounting Standard 18, in respect of the related party disclosure. The company paid remuneration to the Chairman, Managing Director and Whole time Director among the key management personnel of Rs. 24.00 each (Previous Year of Rs. 122.88 each) respectively. The company has no related party transactions with the relatives of key management personnel. In addition, the Company has paid Rs. 1.44 (Previous Year Rs.0.84) as Directors Sitting fee to all the Independent Directors.

VI. HOUSING SUBSIDY:

The Company has received a sum of Rs. 10.75 from Government of India during earlier years for the purpose of constructing 50 tenements for housing to its personnel in its Limestone Mines. The Company has entered into an agreement with Government of India for a period of 20 years.

VII. The company has not received the required information from the suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006. Hence disclosures, if any, relating to amounts unpaid as at the period end together with interest paid/payable as required under the said Act have not been made.

VIII. REALIZATION OF ASSETS:

The Board is of the opinion that the Assets other than Fixed Assets have a value on realization in the ordinary course of business at least to the amount at which they are stated.

IX. The following table set out the status of the gratuity plan as required under AS 15 (Revised).

X. Previous Year figures have been regrouped as per New Revised Schedule VI to conform to the groupings adopted in these accounts.

XI. The amounts except the Share data and quantitative information have been rounded off to the nearest Lakh rupees and fraction thereof up to two decimals.

---

Mar 31, 2011

(Rs in ''000)

1. Contingent Liabilities not provided for:

(a) Bank guarantees given for Rs.5,069.97 (Previous Year Rs. 6,431.05)

(b) Estimated Amount of Contracts remaining to be executed on capital account and not provided for Rs.3,45,600.00 (previous year Rs.3,00,000.00)

(c) Claims against the Company not acknowledged as debts: Rs. 3,155.66 (Previous Year Rs. 3,155.66)

2. SECURED LOANS:

a) The Term loans in respect of Cement business from Axis Bank Limited, ICICI Bank Ltd, State Bank of Hyderabad, United Bank of India and Karnataka Bank Ltd are secured by equitable mortgage by deposit of title deeds by creating first charge on immovable properties and second charge by hypothecation of all current assets both present and future, subject to prior charge on current assets in favour of Company''s Bankers for Working Capital and also Guaranteed by Promoter Directors, in their individual capacities.

b) Cash Credit from the Axis Bank Limited, Corporation Bank and Karnataka Bank Ltd is secured by hypothecation of Raw Materials, Consumable Stores, Work-in-Process, Finished Goods and Book Debts etc. and is guaranteed by Promoters in their personal capacity and is further secured by way of second charge on fixed assets.

c) Deferred liabilities include the assets acquired under Hire purchase system are Secured by Hypothecation of those assets.

3. During the year the company has been sanctioned a Debt Restructuring Package by the CDR EG Cell vide their letter dated 28/03/2011. In terms thereof the company and the lending bankers had to enter into a Master Restructuring Agreement which is under progress. Further, in terms thereof, the company has been sanctioned a fresh term loan by majority of the bankers and the bankers had agreed to restructure the existing loans and facilities, for funding of interest from a cut-off date and upto 31st December, 2011, and rescheduling of loans. Further the promoters have to bring in additional share capital as their margin and have brought in a part thereof, which has been shown under share application money. Pending completion of all formalities as envisaged under the scheme like entering into MRA etc, the company has accounted in this balance sheet, the interest payable, i.e. Funded Interest Term Loan (FITL), for the period between the cut-off date and the balance sheet date of Rs.1,43,942.39, as Capital Work in Progress to the extent of Rs.97,616.21 and as a charge off to Profit & Loss a/c. to the extent of the balance amount. These amounts are however subject to reconciliation and confirmation by the bankers. The same will be reviewed and necessary entries would be passed once all the formalities in terms of the scheme are completed.

4. REVALUATION AND ACCOUNTING OF MINERAL DEPOSITS AND RIGHTS:

The management had revalued and accounted the value in respect of mineral deposits and mining rights, during the earlier financial year, based on an estimate of the mineral quantities by M/s. C.C. Geo Engineering Consultants (P) Ltd. and of the realizable value by M/s. G.S. Sekhar, Chartered Accountants. According to the accounting policy adopted in this regard, during that year, the amount so revalued and included in the Fixed Assets is Rs.1072558.92 on account of Mineral Deposits and Rs. 293341.10 on account of Mining Rights totaling to Rs.1365900.00. During the year an amount of Rs. 72832.38 (previous year Rs. 72832.38) has been provided as depreciation and an amount equal to such depreciation has been with drawn from the Mineral Capitalization Reserve.

5. SEGMENT REPORTING:

In terms of the Accounting Standard 17 relating to "Segment Reporting”, the company operated only in Cement business segments during the year and operates only in one geographical segment viz. India. Considering the source and nature of risks and returns the business segment will be the primary segment for this purpose and there are no secondary segments. Consequently, in view of the management based on control purposes, there are no reportable secondary segments in terms of the AS and hence the requirements there- under are not applicable to the company for the year.

6. RELATED PARTY TRANSACTIONS:

The Company has no related parties other than the key management personnel and relatives of such personnel in terms of Accounting Standard 18, in respect of the related party disclosure. The company paid remuneration to the Chairman, Managing Director, and Whole time Director among the key management personnel. The particulars of such remuneration are furnished in the Note No. 14(c) hereunder. The company has no related party transactions with the relatives of key management personnel. In addition, the Company has paid Rs. 84.00 (Previous Year Rs.138.00 as Directors Sitting fee to all the Directors.

7 CONVERTIBLE WARRANTS:

During an earlier year, the company under a scheme had issued a total of 20,00,000 Convertible Warrants of Rs.10/- each at a premium of Rs.230/- per warrant, by passing necessary resolutions, convertible into an equal number of equity shares of Rs.10/- each at a premium of Rs.230/- each, within a period of 18 months from the date of allotment of Warrants. The promoters were required to bring in 10% of the amount as application money, which had been brought in during such earlier year, and the balance amount within the specified period. However they have not brought in the balance amount in terms thereof and the company forfeited the 10% amount brought in as application money. The amount so forfeited has been accounted as Capital Reserve in the balance sheet.

8 HOUSING SUBSIDY:

The Company has received a sum of Rs.10.75 from Government of India during earlier years for the purpose of constructing 50 tenements for housing to its personnel in its Limestone Mines. The Company has entered into an agreement with Government of India for a period of 20 years.

9. The company has not received the required information from the suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006. Hence disclosures, if any, relating to amounts unpaid as at the period end together with interest paid/payable as required under the said Act have not been made.

10. CURRENT ASSETS & LOANS AND ADVANCES:

The Board is of the opinion that the Current Assets & Loans and Advances have a value on realization in the Ordinary Course of Business at least to the amount at which they are stated

11. The following table set out the status of the gratuity plan as required under AS 15 (Revised).

Reconciliation of opening and closing balances of the deferred benefit obligation:

12. PROFIT & LOSS ACCOUNT :

a) The company is not liable for income tax under regular provisions of the Act as well as in terms of sec.115JB of the act in view of current year losses and allowances.

b) Consumption of Raw Materials and value of Inventories includes Royalty and other levies paid to Government to the extent of Rs.23356.615 (previous year Rs.12733.84).

c) Particulars of Remuneration paid/provided to the, Chairman, Managing Director and Whole Time Director:

The Central Government has accorded its approval for the above remuneration in terms of the relevant provisions of the Companies Act, 1956

However the remuneration for a part of the year has been paid as agreed by the promoters in terms of the above referred restructuring package.

(13) Figures indicated in brackets relates to previous year.

14. Previous year figures have been regrouped wherever necessary to conform to the groupings adopted in these accounts.

15. The amounts except the Share data and quantitative information have been rounded off to the nearest thousand rupees and fraction thereof up to two decimals.

---

Mar 31, 2010

(Rsin000)

1. Contingent Liabilities not provided for:

(a) Bank guarantees given for Rs.6431.05 (Previous Year Rs. 6301.75).

(b) Estimated Amount of Contracts remaining to be executed on capital account and not provided for Rs. 300000.00, (previous year Rs.246390.00)

(c) Claims against the Company not acknowledged as debts: Rs. 3155.66 (Previous Year Rs. 5137.45)

2. SECURED LOANS:

a) The Term loans in respect of Cement business from Axis Bank Limited, ICICI Bank Ltd, State Bank of Hyderabad, United Bank of India and Karnataka Bank Ltd are secured by equitable mortgage by deposit of title deeds by creating first charge on immovable properties and second charge by hypothecation of all current assets both present and future, subject to prior charge on current assets in favour of Companys Bankers for Working Capital and also Guaranteed by Promoter Directors, in their individual capacities.

b) Cash Credit from the Axis Bank Limited, Corporation Bank and Karnataka Bank Ltd is secured by hypothecation of Raw Materials, Consumable Stores, Work-in-Process, Finished Goods and Book Debts etc. and is guaranteed by Promoters in their personal capacity and is further secured by way of second charge on fixed assets.

c) Deferred liabilities include the assets acquired under Hire purchase system are Secured by Hypothecation of those assets.

3. REVALUATION AND ACCOUNTING OF MINERAL DEPOSITS AND RIGHTS:

The management had revalued and accounted the value in respect of mineral deposits and mining rights, during the earlier financial year, based on an estimate of the mineral quantities by M/s. C.C.Geo Engineering Consultants (P) Ltd. and of the realizable value by M/s. G.S.Sekhar, Chartered Accountants. According to the accounting policy adopted in this regard, during that year, the amount so revalued and included in the Fixed Assets is Rs. 1072558.92 on account of Mineral Deposits and Rs.293341.10 on account of Mining Rights totaling to Rs. 1365900.00. During the year an amount of Rs.72832.38 (previous year Rs.72832.38) has been provided as depreciation and an amount equal to such depreciation has been with drawn from the Mineral Capitalization Reserve.

5. RELATED PARTY TRANSACTIONS:

The Company has no related parties other than the key management personnel and relatives of such personnel in terms of Accounting Standard 18, in respect of the related party disclosure. The company paid remuneration to the Chairman, Managing Director, and Whole time Director among the key management personnel. The particulars of such remuneration are furnished in the Note No. 13(c) hereunder. The company has no related party transactions with the relatives of key management personnel. In addition the Company has paid Rs.1, 38,000 (Previous Year Rs.1,92,000) as Directors Sitting fee to all the Directors.

8. CONVERTIBLE WARRANTS:

During an earlier year, the company under a scheme had issued a total of 20,00,000 Warrants of Rs.10/- each at a premium of Rs.230/- per warrant convertible into an equal number of equity shares of Rs10/- each at a premium of Rs.230/- each, by passing necessary resolutions, within a period of 18 months. The promoters were required to bring in 10% of the amount along with the application and the balance amount within the specified period. The amounts brought in as on the date of balance sheet but within the specified period, pending compliances with all terms and conditions of the scheme, are shown under the application money for warrants in the balance sheet. The shares are to be allotted at the end of the specified period upon receipt of the entire amount. The promoters have brought in a total of Rs.292030.00, as on the date of balance sheet, under the scheme and the same has been shown underthe application money for warrants.

9. HOUSING SUBSIDY:

The Company has received a sum of Rs. 10.75 from Government of India during earlier years for the purpose of constructing 50 tenements for housing to its personnel in its Limestone Mines. The Company has entered into an agreement with Government of India for a period of 20 years.

10. The company has not received the required information from the suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006. Hence disclosures, if any, relating to amounts unpaid as at the period end together with interest paid/payable as required under the said Act have not been made.

11. CURRENT ASSETS & LOANS AND ADVANCES:

The Board is of the opinion that the Current Assets & Loans and Advances have a value on realization in the Ordinary Course of Business at least to the amount at which they are stated

13. PROFIT & LOSS ACCOUNT :

a) The provision for Income Tax has been made in terms of the provisions of Sec.115 JB of Income Tax Act 1961.

b) Consumption of Raw Materials and value of Inventories includes Royalty and other levies paid to Government to the extent of Rs. 12733.84 (previous year Rs.6066.18).

15. Previous period figures have been regrouped wherever necessary to conform to the groupings adopted in these accounts.

16. The amounts except the Share data and quantitative information have been rounded off to the nearest thousand rupees and fraction thereof.

---

Mar 31, 2009

1. The company changed its name from Ckoramaandel Cements Ltd to Bheema Cements Ltd with effect from September 29,2008.

2. Contingent Liabilities not provided for:

(a) Bank guarantees given for Rs.6301.75 (Previous Year Rs.9207.32).

(b) Estimated Amount of Contracts remaining to be executed on capital account and not provided for Rs.246390.00 (Net of Advances) (previous year Rs.350563.67)

(c) Claims against the Company not acknowledged as debts: Rs.5137.45 (Previous Year Rs.4529.03)

3. SECURED LOANS:

a) The Term loans in respect of Cement business from Axis Bank Limited, ICICI Bank Ltd, State Bank of Hyderabad and United Bank of India are secured by equitable mortgage by deposit of title deeds by creating first charge on immovable properties and second charge by hypothecation of all current assets both present and future, subject to prior charge on current assets in favoui* of Companys Bankers for Working Capital and also Guaranteed by Promoter Directors, in their individual capacities.

b) The term loans in respect of Wind Farms from Axis Bank Ltd and ICICI Bank Ltd are secured by first charge on the three wind energy machines i.e. fixed assets purchased out of Axis Bank Ltd and ICICI term loan and second charge on all current assets of the company with the existing bankers and also guaranteed by Promoter Directors, in their individual capacities.

c) Cash Credit from the Axis Bank Limited and Corporation Bank is secured by hypothecation of Raw Materials, Consumable Stores, Work-in-Process, Finished Goods and Book Debts etc. and is guaranteed by Promoters in their personal capacity and is further secured by way of second charge on fixed assets.

d) Deferred liabilities include the assets acquired under Hire purchase system and are secured by hypothecation of those assets.

4. REVALUATION AND ACCOUNTING OF MINERAL DEPOSITS AND RIGHTS:

The management had revalued and accounted such value in respect of mineral deposits and mining rights, during the previous financial year, based on an estimate of the mineral quantities by M/s. C.C.Geo Engineering Consultants (P) Ltd. and of the realizable value by M/s. G.S.Sekhar, Chartered Accountants. According to the accounting policy adopted in this regard, during that year, the amount so revalued and included in the Fixed Assets is Rs.1072558.92 on account of Mineral Deposits and Rs.293341.10 on account of Mining Rights totaling to Rs.1365900.00. An amount of Rs.72832.38 (previous year Rs.72832.38) has been provided as depreciation and an amount equal to such depreciation has been with drawn from the Mineral Capitalisation Reserve.

5. SEGMENT REPORTING

In terms of the Accounting Standard 17 relating to "Segment Reporting", the company operates in two business segments viz. cement manufacturing and wind power generation and operates only in one geographical segment viz .India. Considering the source and nature of risks and returns the business segment will be the primary segment for this purpose and there are no secondary segments. The segment revenues and the assets and liabilities are stated below:

6. RELATED PARTY TRANSACTIONS:

The Company has no related parties other than the key management personnel and relatives of such personnel in terms of Accounting Standard 18, in respect of the related party disclosure. The company paid remuneration to the Chairman, Managing Director, and Whole time Director among the key management personnel. The particulars of such remuneration are furnished in the Note No. 14(c) hereunder. The company has no related party transactions with the relatives of key management personnel. In addition, the Company has paid Rs. 192.00 (Previous Period Rs.64.00) as Directors Sitting fee to all the Directors.

7. CONVERTIBLE WARRANTS:

During the current year, the company under another scheme had issued a total of 20,00,000 Warrants of Rs.10/- each at a premium of Rs.230/- per warrant convertible into an equal number of equity shares of Rs10/- each at a premium of Rs.230/- each by passing necessary resolutions within a period of 18 months. The promoters were required to bring in 10% of the amount along with the application and the balance amount within the specified period. The amounts brought in as on the date of balance sheet but within the specified period are shown under the application money for warrants in the balance sheet. The shares are to be allotted at the end of the specified period upon receipt of the entire amount.. The promoters have brought in a total of Rs.247730.00 under the scheme and the same has been shown under the applications money for warrants.

8. HOUSING SUBSIDY:

The Company has received a sum of Rs. 10.75 from Government of India during earlier years for the purpose of constructing 50 tenements for housing to its personnel in its Limestone Mines. The Company has entered into an agreement with Government of India for a period of 20 years.

9. The company has not received the required information from the suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006. Hence disclosures, if any, relating to amounts unpaid as at the period end together with interest paid/payable as required under the said Act have not been made.

10. CURRENT ASSETS & LOANS AND ADVANCES:

The Board is of the opinion that the Current Assets & Loans and Advances have a value on realization in the Ordinary Course of Business at least to the amount at which they are stated

11. The following table set out the status of the gratuity plan as required under AS 15 (Revised). Reconciliation of opening and closing balances of the deferred benefit obligation:

12. PROFIT & LOSS ACCOUNT :

a) The provision for Income Tax has been made in terms of the provisions of Sec.115 JB of Income Tax Act 1961.

b) Consumption of Raw Materials and value of Inventories includes Royalty and other levies paid to Government to the extent of Rs.6066.18 (previous period Rs. 19162.08).

c) Particulars of Remuneration paid/provided to the Chairman, Managing Director and Whole Time Director:

The Central Government has accorded its approval for the above remuneration in terms of the relevant provisions of the Companies Act, 1956

() Figures indicated in brackets relates to previous period.

(d) Employee cost includes gratuity payment of Rs.4288.09 towards employees benefits for earlier years.

13. The information required as per Clause 4 (c) and 4(d) and notes thereon Part II of Schedule VI of the Companies Act, 1956 (as certified by the Management).

14. Previous period figures have been regrouped wherever necessary to conform to the groupings adopted in these accounts and are not comparable as they represent 6months period from 01/10/2007 to 31/03/2008 as against the current year period of 12 months ending 31/03/2009.

15. The amounts except the Share data and quantitative information have been rounded off to the nearest thousand rupees and fraction thereof.

---

Mar 31, 2008

1. Contingent Liabilities not provided for:

(a) Bank guarantees given for Rs. 92,07,315/- (Previous Period Rs. 64,11,750/-.

(b) Estimated Amount of Contracts remaining to be executed on capital account and not provided for Rs.35,05,63,665 (Net of Advances) (previous year Rs. 8,77,23,069)

(c) Claims against the Company not acknowledged as debts: Rs. 31, 41,000/- (Previous Year Rs. 31,41,000/-)

2. SECURED LOANS:

a) The Term loans from Centurion Bank of Punjab Limited, Axis Bank Limited secured by equitable mortgage by deposit of title deeds by creating first charge on immovable properties and second charge by hypothecation of all current assets both present and future, subject to prior charge on current assets in favour of Companys Bankers for Working Capital and also Guaranteed by Promoter Directors, in their individual capacities.

b) The term loans from Axis Bank Ltd and ICICI Bank Ltd are secured by first charge on the three wind energy machines i.e. fixed assets purchased out of Axis Bank Ltd and ICICI term loan and second charge on all current assets of the company with the existing bankers and also guaranteed by Promoter Directors, in their individual capacities.

c) Cash Credit from the Centurion Bank of Punjab Limited and Axis Bank Limited is secured by hypothecation of Raw Materials, Consumable Stores, Work-in-Process, Finished Goods and Book Debts etc. and is guaranteed by Promoters in their personal capacity and is further secured by way of second charge on fixed assets.

d) Other liabilities include the assets acquired under Hire purchase system are Secured by Hypothecation of those assets.

3. ACCOUNTING OF THE VALUE OF MINERAL DEPOSITS AND RIGHTS:

The company owns lands and has leasehold rights in respect of other lands, beneath which lie Limestone deposits. The Limestone is excavated and used as a raw material in the production of Clinker. The lands are owned and held on lease for many years and the relevant costs had been accounted, during the relevant years, either as capital or revenue expenditure as the case may be. However, the minerals lying beneath the lands were not valued earlier. During the year the management reviewed and felt that the minerals have a long term commercial value adding benefit to the business of the company and that they should have been accounted & brought into books. Consequently it considered appropriate to value them and account for it in the books of account during the year.

Accordingly the company made an estimate of the quantity of minerals based on a report by M/s. C C Geo Engineering Consultants Pvt Ltd, Hyderabad, Hyderabad, independent Geological Consultants, and of the realizable value at Rs. 136, 59, 00,000 of those minerals based on a report by M/s. G.S.Sekhar, Hyderabad, independent Chartered Accountants. The value of minerals so estimated has been accounted in two parts namely Mineral Deposits to the extent of lands owned at Rs. 107, 25, 58,915 and Mineral Rights to the extent of lands held on lease at Rs.29,33,41,085. The said values have been debited and shown as a Mineral Deposits and Mineral Rights, as the case may be, under the Fixed Assets. A corresponding liability at Rs.136, 59, 00,000 has been credited as a Capital Reserve under the Reserves and Surplus. The value of assets so accounted has been depreciated, in accordance with the accounting policy mentioned hereinabove, by withdrawing an equal amount from the Capital Reserve.

The above accounting of mineral deposits resulted in change in accounting policy to the extent of preparing and presenting financials statements on and recording fixed assets at estimated realizable value in respect of mineral deposits and providing depreciation thereon. The change however has no impact on the profit of the company for the period but the net value of the assets has been overstated by an amount of Rs.129, 30, 67,619.

4. RELATED PARTY TRANSACTIONS:

The Company has no related parties other than the key management personnel and relatives of such personnel in terms of Accounting Standard 18, in respect of the related party disclosure. The company paid remuneration to the Chairman, Managing Director, and Whole time Director among the key management personnel. The particulars of such remuneration are furnished in the Note No. 10(c) hereunder. The company has no related party transactions with the relatives of key management personnel. In addition the Company has paid Rs. 64,000/- as Directors Sitting fee to all the Directors.

5. CONVERTIBLE WARRANTS:

During the current period a total amount of Rs.3, 55, 05,000 (previous year Rs. 9, 00,000) has been received from the promoters. It represents the monies receivable from them towards 41, 96,790 Convertible Warrants issued and allotted to them, during the previous period 2006-07. In terms of the relevant scheme, the promoters have an option to convert the warrants into shares within a period of 18 months from the date of allotment of warrants. An amount of Re.1 per warrant was paid by them at the time of allotment and the remaining amount is to be paid before the exercise of the said option. The amount so received till the date of balance sheet has been included under the Share Application Money.

6. HOUSING SUBSIDY :

The Company has received a sum of Rs.10, 75,000/- from Government of India during earlier years for the purpose of constructing 50 tenements for housing to its personnel in its Limestone Mines. The Company has entered into an agreement with Government of India for a period of 20 years.

7. The company has not received the required information from the suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006. Hence disclosures, if any, relating to amounts unpaid as at the period end together with interest paid/payable as required under the said Act have not been made.

There are no outstanding dues to SSI units for more than 30 days as at 31.03.08.

8. CURRENT ASSETS & LOANS AND ADVANCES:

The Board is of the opinion that the Current Assets & Loans and Advances have a value on realization in the Ordinary Course of Business at least to the amount at which they are stated.

9. PROFIT & LOSS ACCOUNT:

a) The provision for Income Tax has been made in terms of the provisions of Sec. 115 JB of Income Tax Act 1961. The company is not liable to Income Tax under regular provisions of the Act in view of brought forward losses and allowances.

b) Consumption of Raw Materials and value of Inventories includes Royalty and other levies paid to Government to the extent of Rs. 60, 66,185/- (previous period Rs. 1,91,62,079).

c) Particulars of Remuneration paid/provided to the, Chairman, Managing Director and Whole Time Director: .

10. Previous period figures have been regrouped wherever necessary to conform to the groupings adopted in these accounts and are not comparable as they repregent 18 months period from 01/04/2006 to 30/09/2007 as against the current year period of 6 months ending 31/03/2008.

11. The amounts have been rounded off to the nearest rupee.

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Mar 31, 2006

1. Contingent Liabilities not provided for:

(a) Bank guarantees given for Rs.41,06,823 (Previous Year Rs.57,00,000)

2. Claims against the Company not acknowledged as debts: Rs.31,41,000 (previous Year Rs. 31,41,000)

3. Secured Loans:

a) All the Term loans are secured by a joint equitable mortgage by deposit of title deeds with State Bank of India in favour of participating Banks as first charge on immovable properties and hypothecation of all movable assets (except book debts) both present and future, subject to prior charge on movable assets in favour of Companys Bankers for Working Capital and also Guaranteed by Promoter Directors, in their individual capacities.

b) The Term Loans from State Bank of India & State Bank of Hyderabad and Lord Krishna Bank rank pari-passu among themselves.

c) Cash Credit from the State Bank of India and State Bank of Hyderabad is secured by hypothecation of Raw Materials, Consumable Stores, Work-in-Process, Finished Goods and Book Debts etc. and is guaranteed by Promoters in their personal capacity and is further secured by way of second charge on fixed assets.

d) Other liabilities includes the assets acquired under Hire purchase system are Secured by Hypothecation of those assets.

4. In the opinion of the management there is no indication that any of the assets of the company has been impaired. Accordingly no loss on account of impairment has been recongnised during the year in terms of Accounting Standard 28-Impairment of Assets

5. (a) There are no reportable segments for the company in terms of Accounting Standard 17 "Segment Reporting" issued by the Institute of Chartered Accountants of India, as there are no varying risks and returns for the products of the company and geographical areas in which the company operates.

(b) The Company has no related parties other than the key management personnel and relatives of such personnel in terms of Accounting Standard 18, in respect of the related party disclosure. The company paid remuneration to the Chairman, Managing Director, and Whole time Director among the key management personnel. The particulars of such remuneration are furnished in the note no. 8(d) hereunder. The company has no related party transactions with the relatives of key management personnel. In addition the Company has paid Rs. 20,000/- as Directors Sitting fee to all the Directors.

(c) In terms of the provisions of Accounting Standard 22-"Accounting for taxes on incomer, The company has not recognised deferred tax asset/liability in view of the companys brought forward business losses and unabsorbed depreciation and in view of lack of future taxable income against which the Deferred tax asset can be realised.

(d) Earnings Per Share

The Computation of Earnings Per Share is set out below:

2005-06 2004-05

(a) Earnings 90,60,985 77,63,766

(b) Shares Weighted average No.of Equity Shares outstanding During the year 51,03,210 51,03,210

(c) Earnings per Share of face value of Rs10/- each (a/b) 1.78 1.52

6. During the year the Company has received an amount of Rs.2,11,25,000 (Previous Year Rs.90,59,850) as a Share Application money from the Promoters and their Associates. The allotment of shares against such Share Application money, which is pending as on the date of the Balance Sheet, is subject to approval of Shareholders and relevant statutory compliances.

7. Housing Subsidy: The Company has received a sum of Rs.10,75,000 from Government of India during earlier years for the purpose of constructing 50 tenements for housing to its personnel in its Limestone Mines. The Company has entered into an agreement with Government of India for a period of 20 years.

8. There are no outstanding dues to SSI units for more than 30 days as at 31st March 2006.

9 Current Assets & Loans and Advances:

The Board is of the opinion that the Current Assets & Loans and Advances have a value on realization in the Ordinary Course of Business at least to the amount at which they are stated.

10. Profit & Loss Account:

a) The provision for Income Tax has been made in terms of the provisions of Sec. 115 JB of Income Tax Act 1961. The company is not liable to Income Tax under regular provisions of the Act in view of brought forward tosses and allowances.

b) Consumption of Raw Materials and value of Inventories includes Royalty and other levies paid to Government to the extent of Rs. 90,35,992 (previous year Rs. 84,22,000).

c) Particulars of Remuneration paid/provided to the, Chairman, Managing Director and Whole Time Director:

S. Chandra S.R.B.Ramesh S.Kishore Mohan Chandra Chandra Chairman Managing Director Wholetime Director Current Year Current Year Current Year (Rupees) (Rupees) (Rupees)

Remuneration 12,00,000 11,40,000 10,80,000

(8,60,645) (8,00,645) (7,83,065)

Rent Free Accommodation 1,20,000 1,14,000 1,08,000

(86,065) (80,065) (78,307)

Provident Fund 9,360 9,360 9,360

(9,360) (9,360) (9,360)

Total 13,29,360 12,63,360 11,97,360

(9,56,070) (8,90,070) (8,70,732,)

() Figures indicated in brackets relates to Previous year.

12. Previous year figures have been regrouped wherever necessary to confirm to the classification adopted in the current year.

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Mar 31, 2003

1. Contingent Liabilities not provided for:

(a) Rs.18.02 lacs in respect of Mineral Revenue Tax & Cess (Previous Year Rs.18.02 lacs).

(b) Bank guarantees given for Rs.25.10 lacs (Previous Year Rs.3.25 lacs)

2. Claims against the Company not acknowledged as debts: Rs. 31.41 lacs (previous Year Rs.31.41 lacs)

3. Secured Loans:

a) All the Term loans are secured by a joint equitable mortgage by deposit of title deeds with State Bank of India in favour of participating Banks as first charge on immovable properties and hypothecation of all movable assets (except book debts) both present and future, subject to prior charge on movable assets in favour of Company's Bankers for Working Capital and also Guaranteed by Promoter Directors, in their individual capacities.

b) The Term Loans from State Bank of India & State Bank of Hyderabad rank pari-passu among themselves.

c) Cash Credit from the State Bank of India and State Bank of Hyderabad is secured by hypothecation of Raw Materials, Consumable Stores, Work-in-Process, Finished Goods and Book Debts, etc. and is guaranteed by Promoters in their personal capacity and is further secured by way of charge on fixed assets.

4 (a) There are no reportable segments for the company in terms of Accounting Standard 17 "Segment Reporting" issued by the institute of Chartered Accountants of India, as there are no varying risks and returns for the products of the company and geographical areas in which the company operates.

(b) The Company has no related parties other than the key management personnel and relatives of such personnel in terms of Accounting Standard 18, in respect of the related party disclosure. The company paid remuneration to the Managing Director, Joint Managing Director and Executive Director among the key management personnel. The particular's of such remuneration are furnished in the note no. 8(e) hereunder. The company has no related party transitions with the relatives of key management personnel.

(c) In terms of the provisions of Accounting Standard 22 in respect of "Accounting for taxes on income" the company has not recognized deferred tax asset/liability in view of the company's brought forward business losses and unabsorbed depreciation.

(d) Leave encashment is accounted for on payment basis.

5. Housing Subsidy: The Company has received a 6 sum of Rs. 10.75 lacs from Government of India during earlier years for the purpose of constructing 50 tenements for housing to its personnel in its Limestone Mines. The Company has entered into an agreement with Government Of India for a period of 20 years.

6. There are no out standings to SSI units for more than 30 days as at 31st March 2003.

7. Current Assets & Loans and Advances:

The Board is of the opinion that the Current Assets & Loans and Advances have a value on realisation in the Ordinary Course of Business at least to the amount at which they are stated.

8. Profit & Loss Account:

a) The Company has not provided depreciation for the year 1988-89 to 1993-94 amounting to Rs.304.66 laces, in view of Losses during those years.

b) The provision for Income Tax has been made to terms of the provisions of Sec. 115 JB of Income Tax Act 1961. The company is not liable to Income Tax under regular provisions of the Act in view of brought forward losses and allowances.

c) Prior period items (net) include Rs.2,45,483 towards additional charges levied by APCPDCL.

d) Consumption of Raw Materials and value of Inventories includes Royalty and other levies paid to Government to the extent of Rs. 76.39 lacs (previous year Rs. 74.80 lacs).

9. Previous year figures have been regrouped wherever necessary to conform to the classification adopted in the current year.

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Mar 31, 2002

1. Contingent Liabilities not provided for:

(a) Rs. 18.02 lacs in respect of Mineral Revenue Tax & Cess (Previous Year Rs.15.02 lacs).

(b) Bank guarantees given for Rs. 3.25 lacs (Previous Year Rs. 30.00 lacs)

2. Claims against the Company not acknowledged as debts: Rs. 31.41 lacs (previous Year Rs. 31.41 lacs)

3. Secured Loans:

a) All the Term loans are secured by a joint equitable mortgage by deposit of title deeds with State Bank of India in favour of participating Banks as first charge on immovable properties and hypothecation of all movable assets (except book debts) both present and future, subject to prior charge on movable assets in favour of Companys Bankers for Working Capital and also Guaranteed by Promoter Directors, in their individual capacities.

b) The Term Loans from State Bank of India & State Bank of Hyderabad rank paripassu among themselves.

c) Cash Credit from the State Bank of India and State Bank of Hyderabad is secured by hypothecation of Raw Materials, Consumable Stores, Work-in-Process, Finished Goods and Book Debts, etc. and is guaranteed by Promoters in their personal capacity and is further secured by way of charge on fixed assets.

4 (a) The Company has only one business segment and one geographical segment in terms of Accounting Standard 17 in respect of Segment Reporting. Hence, keeping in view the objective of the Accounting Standard, the Segment Reporting is not applicable to the Company.

(b) The Company has no related parties in terms of the Accounting Standard 18, except the key management personnel and other relatives. However, the Company has no related party transactions as referred to in the Accounting Standard.

(c) In view of the unabsorbed depreciation and brought forward losses under Tax Law, the Company has not made any provision towards deferred tax, and accordingly, deferred tax asset has not been recognized in terms of the Accounting Standard 22.

(d) Leave encashment is accounted for on payment basis.

5. Housing Subsidy : The Company has received a sum of Rs.10.75 lacs from Government of India for the purpose of constructing 50 tenements for housing personnel in its Limestone Mines. The Company has entered into an agreement with Government of India for & period of 20 years.

6. There are no SSI Units to whom amounts in excess of Rs. 1.00 lac each is due for more than 30 days as at 31st March, 2002.

7. Current Assets & Loans and Advances:

The Board is of the opinion that the Current Assets & Loans and Advances have a value on realisation in the Ordinary Course of Business at least to the amount at which they are stated.

8. Profit & Loss Account:

a) The Company has not provided depreciation for the year 1988-89 to 1993-94 amounting to Rs. 304.66 lacs, in view of previous year Losses.

b) Provision for regular taxation has not been made in view of carry forward losses. However provision for taxation is made as per section 115 JB of the income Tax Act.

c) Prior period items(net) includes Rs. 1,62,195/- towards excess provision of depreciation written back as it relates to earlier years.

d) In the previous year figures interest waiver from Financial institutions has been netted off against the Loss brought forward from the previous years.

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Mar 31, 2001

1. Contingent Liabilities not provided for :

(a) Rs.15.02 lacs in respect of Mineral Revenue Tax & Cess (Previous Year Rs.15.02 lacs).

(b) Bank guarantees given for Rs.30.00 lacs (Previous Year Rs.32.60 lacs)

2. Claims against the Company not acknowledged as debts: Rs.31.41 lacs (Previous Year Rs.31.41 lacs)

3. Secured Loans :

a) All the Term loans are secured by a joint equitable mortgage by deposit of title deeds with Industrial Development Bank of India in favour of all participating Financial Institutions as first charge on immovable properties and hypothecation of all movable assets (except book debts) both present and future, subject to prior charge on movable properties in favour of Company's Bankers for Working Capital and also Guaranteed by Promoter Directors, in their individual capacities.

b) The Term Loans from all the Financial Institutions rank paripassu among themselves.

c) Cash Credit from the State Bank of India and State Bank of Hyderabad is secured by hypothecation of Raw Materials, Consumable Stores, Work-in-Process and Finished Goods, Book Debts, etc. and is guaranteed by Promoters in their personal capacity and is further secured by way of second charge on fixed assets and sanctioned limit Rs.340 lacs (Previous Year Rs.365 lacs)

4. The Company was declared as a Sick Company with in the meaning of Section 3(1)(O) of Sick Industrial Companies (Special Provisions) Amendment Act 1993 vide Regn. No. 141/94 dated 15-09-994.

The revised sanctioned package was also could not be implemented and the company's revised settlement proposal submitted has been accepted by the Financial Institutions for an amount of Rs. 608.88 lacs towards full and final settlement of their dues. In view of the acceptance, the company has written back an amount of Rs. 1009.79 lacs as interest waiver including funded interest. The said relief /waiver is subject to fulfillment of the terms and conditions stipulated by the Financial Institutions. The Company has paid an amount of Rs. 52.2 lacs out of Rs. 608.88 lacs and the same is adjusted towards the outstanding amount. The balance amount along with interest is to be paid before 31st December 2001.

The Company has not provided interest on Term Loans for the period from 01-10-1998 to 31-03-2000 amounting to Rs. 462.95 lacs and for this year amounting to Rs. 273.16 lacs including penal interest in view of the sanction of scheme by Financial Institutions and waiver of interest till 31.03.2001.

5. Housing Subsidy : The Company has received a sum of Rs. 10.75 lacs from Government of India for the purpose of constructing 50 tenements for housing personnel in its Limestone Mines. The Company has entered into an agreement with Government of India for a period of 20 years.

6. There are no SSI Units to whom amounts in excess of Rs. 1.00 lac each is due for more than 30 days as at 31st March, 2001.

7. Current Assets & Loans and Advances:

The Board is of the opinion that the Current Assets & Loans and Advances have a value on realisation in the Ordinary Course of Business at least to the amount at which they are stated.

8. Profit & Loss Account :

a) The Company has not provided depreciation for the year 1988-89 to 1993-94 amounting to Rs. 305.27 lacs, in view of Losses.

b) Provision for taxation has not been made in view of carry forward losses and also the taxable income as per section 115JB is nil for the year.

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Mar 31, 2000

1. Contingent Liabilities not provided for :

a) Rs.15.02 lacs in respect of Mineral Revenue Tax & Cess (Previous Year 15.02 lacs).

b) Bank Guarantees given for Rs.32.60 lacs (Previous Year Rs.1 lac)

2. Claims against the Company not acknowledged as debts : Rs.31.41 lacs (Previous Year Rs.48.31 lacs)

3. Secured Loans :

a) All the Term loans are secured by a joint equitable mortgage by deposit of title deeds with Industrial Development Bank of India in favour of all participating Financial Institutions as first charge on immovable properties and hypothecation of all movable assets (except book debts) both present and future, subject to prior charge on movable properties by the Company's Bankers for Working Capital and also Guaranteed by Promoter Directors, in their individual capacities.

b) The Term Loans from all the Financial Institutions rank paripassu among themselves.

c) Deffered Compound Interest amounting to Rs.140.75 lacs, is carrying Zero rate of Interest.

d) Cash Credit from the State Bank of India and State Bank of Hyderabad is secured by hypothecation of Raw Materials, Consumable Stores, Work-in-Process and Finished Goods, Book Debts, etc., and is guaranteed by Promoters in their personal capacity and is further secured by way of Second Charge on fixed assets and sanctioned limit Rs.365 lacs (Previous year Rs.340 lacs).

e) The company was declared as a Sick Company with in the meaning of Section 3(1) (O) of Sick Industrial Companies (Special Provisions) Amendment Act 1993 vide Regn.No.141/94 dated 15-09-1994. In consequence thereof BIFR has sanctioned a package on 8th August, 1996. Further BIFR has sanctioned a Modified Rehabilitation Scheme vide their letter dated 05-03-1999 approving One Time Settlement (OTS) of Financial Institutions dues.

4. Housing Subsidy : The Company has received a sum of Rs.10.75 lacs from the Government of India for the purpose of constructing 50 tenements for housing personnel in its Limestone Mines. The Company has entered into an agreement with Government of India for a period of 20 years.

5. a) Sundry Creditors includes dues to Small Scale Industrial Undertakings amounting to Rs.2.97 lacs.

b) Small Scale Industrial Undertaking whose dues are in excess of Rs.1 lac and is outstanding for more than 30 days is M/s.Panchavati Polyfibres Ltd. - Rs.1.64 lacs.

c) The above information is complied based on the information available with the Company which has been relied upon by the Auditors

6. Current Assets & Loans and Advances

The Board is of the opinion that the Current Assets & Loans and Advances have a value on realisation in the Ordinary Course of Business at least to the amount at which they are stated.

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Mar 31, 1996

Secured Loans:

a) All the Term Loans are secured by a joint equitable mortgage by deposit of title deeds with Industrial Development Bank of India in favour of all participating Financial Institutions as first charge on immovable properties and hypothecation of all movable assets (except book debts) both present and future; subject to prior charge on movable properties by the Company's Bankers for Working Capital and also Guaranteed by Promoter Directors and a former Director in their individual capacities.

b) The Term Loans from all the Financial Institutions rank pari passu among themselves.

c) Cash Credit from the State Bank of India and State Bank of Hyderabad is secured by hypothecation of Raw Materials, Consumable Stores, Work-in-progress and Finished Goods, Book Debts, etc. and is guaranteed by Promoters in their personal capacity (limit Rs. 290 lakhs Previous year Rs.290 lakhs)

Housing Subsidy : The Company has received a sum of Rs.10.75 lakhs from Government of India for the purpose of constructing 50 tenements for housing personnel in its Limestone Mines. The Company has entered into an agreement with Government of India for a period of 20 years.

Profit & Loss Account:

a) The Company has not provided depreciation for the years 1988-89 to 1993-94 amounting to Rs.305.57 lakhs.

d) No provision for taxation has been made in view of carried forward losses and depreciation as per Income Tax Act, 1961.

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Mar 31, 1995

4. Secured Loans

a) All the Term Loans are secured by a joint equitable mortgage by deposit of title deeds with Industrial Development Bank of India in favour of all participating Financial Institutions as first charge on immovable properties and hypothecation of all movable assets (except book debts) both present and future; subject to prior charge on movable properties by the Company's Bankers for Working Capital and also Guaranteed by Promoter Directors and a former Director in their individual capacities.

b) The Term Loans from all the Financial Institutions rank paripassu among themselves.

c) Cash Credit from the State Bank of India and State Bank of Hyderabad is secured by hypothecation of Raw Materials, Consumable Stores, Work-in-progress and Finished Goods.Book Debts, etc. and is guaranteed by Promoters in their personal capacity (limit Rs. 290 lacs Previous year Rs. 290 lacs)

5. Housing Subsidy : The Company has received a sum of Rs.10.75 lacs (Previous Year 10.75 lacs) from Government of India for the purpose of constructing 50 tenements for housing to the personnel in its Limestone Mines. The Company has entered into an agreement with Government of India for a period of 20 years.

6. Profit & Loss Account:

a) The Company has lot provided depreciation for the Year 1988-89 to 1993-94. Amounting Rs. 366.62 lacs.

b) The Company has recomputed the Depreciation provided in 1986-87 and 1987-88 as per the amendment to the Schedule XIV of the Companies Act as per Notification dated 16th December, 1993. This has resulted an excess provision amounting to Rs. 31.89 lacs which has been written back in this account.

c) The Company has provided depreciation of Rs. 70.35 lacs for the Accounting year as per the notification mentioned above.

7. Profit & Loss Account

a) The Company's Special Leave Petition before the Honourable Supreme Court of India challenging the increase in power tariff by Andhra Pradesh State Electricity Board was dismissed by its judgment and order Dated 1.3.1995. The provision made for Disputed power tariff is written off.

b) Particulars of Remuneration paid/provided to the Managing Director and Joint Managing Director.

The remuneration paid to Sri S Chandra Mohan as Joint Managing Director is subject to the approval of shareholders and Financial Institutions.

c) Investment allowance reserve of earlier years amounting to Rs. 187.76 lacs has not been provided due to absence of taxable profits.

d) No provision for taxation has been made in view of carried forward losses and depreciation as per Income Tax Act, 1961.

e) The Company has not provided an amount of Rs. 1.91 lacs (Previous year Rs. 1.17 lacs) towards penal interest on the interest due to Financial Institutions.

8. The information required as per Clause 4(C) and 4(D) and notes thereon part II of Schedule VI of the Companies Act, 1956 (as certified by the Management)

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Mar 31, 1994

Secured Loans:

All the Term Loans are secured by a joint equitable mortgage by deposit of title deeds with Industrial Development Bank of India in favour of all participating Financial Institutions as first charge on immovable properties and hypothecation of all movable assets (except book debts) both present and future subject to prior charge on movable properties by the Company's Bankers for Working Capital and also Guaranteed by a Promoter Director and a former Director in their individual capacities.

The Term Loans from all the Financial Institutions rank paripassu among themselves.

Cash Credit from all the State Bank of India and State Bank of Hyderabad is secured by hypothecation of Raw Materials, Consumable Stores, Work-in-progress and Finished Goods, Book Debts, etc. and is guaranteed by Promoters in their personal capacity (limit Rs.290 lacs Previous Year Rs.290 lacs).

Housing Subsidy:

The Company has received a sum of Rs.10.75 lacs (Previous Year 9.67 lacs) from Government of India for the purpose of constructing 50 tenements for housing personnel in its Limestone Mines. The Company has entered into an agreement with Government of India for a period of 20 years.

Fixsed Assets:

No Depreciation (calculated as per the amendment to Schedule XIV vide Notification dated 16th December, 1993) has been provided for the year amounting to Rs.68.43 lacs (Previous Year Rs.101.90 lacs) in view of accumulated loss. The total amount of Depreciation that has not been provided upto 31st March, 1994 is Rs.523.72 lacs.

Loans and Advances:

Deposits includes Rs.53.85 lacs towards Consumption Deposit paid to Andhra Pradesh State Electricity Board calculated inclusive of the disputed tariff.

Profit & Loss Account:

The Company's Special Leave Petition before the supreme Court challenging the increase in power tariff by APSEB is still pending. The Company's liability has not ceased inspite of the pendency of the petition. The Company's Legal Advisor after considering the latest judicial thinking on the said subject has opined that the Company out of abundant caution should provide for the disputed power tariff in the accounts. The provisions of the disputed amount in the accounts without prejudice to the Company's right to recover the said sum from Andhra Pradesh State Electricity Board in the event, the petition is decided in favour of the Company.

The amounts provided amounting to Rs.453.84 lacs comprises of Rs.150.37 lacs pertaining to the Accounting Year 1993-94 and Rs.303.47 lacs pertaining to previous years.

The Company has paid and charged to revenue a sum of Rs.18.17 lacs to Andhra Pradesh State Electricity Board towards Fuel Cost Adjustment demanded by the Board from 1986 to 1993. Aggrieved against this the Company has filed a Writ Petition in the Andhra Pradesh High Court. The Andhra Pradesh High Court has passed interm orders directing Andhra Pradesh State Electricity Board to refund/adjust against future power bills payable. A sum of Rs.5.27 lacs has been adjusted upto 31.3.1994 which has been shown under other income.

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Mar 31, 1993

The Authorised equity share capital of the company has been increased from 2.95 crores to Rs. 4.70 crores, vide resolution passed at the AGM held on 21st September 1992

A sum of Rs. 292.14 lakhs has been paid to the Andhra Pradesh state electricity board under protest by the company towards increase in Powe tariff. The company's special leave petition is pending before the Supreme court. In order to avoid disconnection of lines the company has paid this amount subject to their right to claim refund in the event the petition being decided in favour of the company. No provision has been made in the accounts for the above amount and the same has been shown under loans and advances as recoverable due to the favorable opinion given regarding the outcome of the case by the company's legal adviser.

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Mar 31, 1992

The Company's special Leave Petition before the supreme Court against the increase in Power Tariff by A.P.S.E.B. is still pending. The company's Legal Adviser has opined that its case before the said Court would be ruled in favour of the company.

Hence, no provision has been considered in the accounts for an amount of Rs. 178.91 lakhs (w.e.f. 15-7-1987 to 31-3-1992) including Rs 79.08 lakhs for the current year. Out of this an amount of Rs 171.95 lakhs has been paid to the APSEB under protest and the same has been shown as an advance paid to the APSEB.

Investment allowance reserve of earlier years amounting to RS.187.76 lakhs has not been provided due to absence of taxable profits.

No provision for taxation has been made in view of carried forward losses and business losses as per Income- Tax Act, 1961.

The company has not provided an amount of Rs. 0.30 lakhs towards penal interest on the interest due to Financial Institutions.

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Mar 31, 1991

Profit & Loss Account : a) No provision has been made for accruing liability upto 31.03.91, for gratuity payable to employees in future as per Gratuity Act, amounting to Rs 3.05 lakhs (Previous Year Rs 2.25 lakhs).

b) The Company's Legal Adviser has opined that its case before the Supreme Court regarding the Power tariff increased by APSEB would be ruled in favour of the Company.

Hence, no provision has been considered in the accounts for an amount of Rs 99.83 lakhs (w.e.f. 15-7-1987 to 31-3-1991) including Rs 50.35 lacs for the current year. Out of this an amount of Rs 95.85 lacs has been paid to the APSEB under protest and the same has been shown as an advance paid to the APSEB.

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Mar 31, 1990

No provision has been made for accruing liability upto 31-3-90 for gratuity payable to employees in future as per gratuity act amounting to Rs. 2.25 lakhs

General expenses includes Rs. 97,729 towards the sales tax pertaining to the previous year.

An amount of Rs.97,120 has been credited to general expenses being the provision of the previous years for contribution to NCCBM which is no longer required.

The company has not provided an amount of Rs. 4.16 lakhs towards Penal interest on the interest due to financial institutions as the matter is pening with the lead financia institution ie IDBI

Other income includes an amount of Rs. 27.77 lakhs being the differential tariff charged in the earlier years.