A. NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED 31.03.2015

Summary of Significant Accounting policies:

Corporation Information

The company was incorporated on 20,h April, 1981 under the provision of the Companies Act 1956, as a Public Limited Company. The Company suffered losses and was declared a sick Company in the year 1998 under the Sick Industrial Companies (Special Provision) Act, 1985. After prolonged proceedings, the Company was declared a healthy one in the year 2011 and was discharged from the purview of the BIFR on 27th July 2011.

Basis of Preparation

The Financial statements have been brpared in accordance with the Generally Accepted Accounting principles in India (Indian GAAP) to comply with the Accounting standards specified under Section 133 of Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules,2014 and relevant provisions of the Companies Act, 2013. The financial statements have been brpared under the historical cost convention on accrual basis.

Summary of Significant Accounting policies:

a. Presentation and Disclosure of accounting policy

During the year ended 31 March 2015, the Schedule III notified under the Companies Act 2013, has been applied for brparation and brsentation of its financial statements. It has significant impact on brsentation and disclosures made in the financial statement. The Company also reclassified the brvious year figures in accordance with the requirements applicable in the current year.

b. Use of Estimates

The brparation of financial statements in conformity with generally accepted accounting principles that require management to make estimates and assumptions that affect the reported value of assets and liabilities on the date of the financial statements and reported amount of revenue and expenditure for the year. Actual results could differ from these estimates. Any revision to accounting estimates is recognized prospectively in the current and future periods.

c. Revenue recognition:

Revenue from sales is recognized on deispatch to customers and is recorded net of Excise Duty and Sales tax.

d. Fixed assets:

All the Fixed Assets are stated at cost together with resultant write-up due to revaluation as there may be and by reducing debrciation, wherever applicable. Cost comprises the purchase price and any other attributable costs of bringing the assets to its working condition for its intended use. 

e. Debrciation:

i) Debrciation on buildings, plant & machinery and electrical installations is provided on straight-line method and on written down value method on other assets in accordance with the rules brscribed under part "C" of Schedule II of the Companies Act, 2013.

ii) The company follows the policy of charging debrciation on pro-rata basis on the assets acquired or disposed off during the year.

iii) In the case of revalued assets, the difference between the debrciation based on revaluation and the debrciation charged on historical cost is transferred from revaluation reserve to profit and loss account.

f. Capital work-in-progress:

The cost incurred for fixed assets under construction/installation are included under capital work-in-progress and the same are classified to the respective assets on the completion.

g. Investments:

Long term investments are stated at cost and provision for diminution is made if the decline in value is other than temporary in nature. Investments other than Long Term Investments are stated at cost or market value whichever is less. Any increase/reduction in the carrying cost is credited / charged to the Profit and Loss account.

h. Inventories:

i) Stock of raw materials are stated at cost and valued on weighted average basis.

ii) Stores & Spare parts are stated at cost and valued on FIFO basis.

iii) Work-in-progress is stated at cost.

iv) Finished goods are valued at the lower of costs or net realizable value.

i. Retirement Benefits:

The company has Defined Contribution Plan for its employees' retirement benefits comprising of Provident Fund. The Company contributes to State Plans namely Employees' State Insurance Fund and Employees Pension Scheme, 1995.

The Company has Defined Benefit Plan comprising of Gratuity Fund. The liability for the Gratuity Fund is determined on the basis of an independent actuarial valuation done at the year-end. Actuarial Gains and Losses comprise experienced adjustments and the effect of I changes in the actuarial assumptions and are recognized immediately in the Profit and Loss Account as income or expense. The Company's Leave encashment policy entitles the employees to accumulate leave for future encashment or availment.  The liability is provided based on the number of days of unavailed leave at each balance sheet date on the basis of an independent actuarial valuation. 

j. Borrowing cost:

Borrowing Costs that are directly attributable to the acquisition of a fixed asset are capitalized as part of the cost of the asset till the date the asset is ready for commercial use. All other borrowing costs are charged to revenue.

k. Income Tax:

i) The current charge for tax is calculated in accordance with relevant tax regulation applicable to the company.

ii) The deferred tax for the timing difference between the book and tax profits for the year is accounted for by using tax rates and laws that have been substantially enacted as of the Balance Sheet date.

iii) Deferred tax Assets arriving from timing difference are recognized and carried forward only if there is reasonable certainty that they will be realized in future and reviewed for the appropriateness of their respective carrying value at each Balance Sheet date.

I. Earning Per Share:

The basic Earning Per Share (EPS) is computed by dividing Net Profit after tax for the year by the weighted average number of Equity Shares out standing during the year.

m. Impairment of Assets:

The company assesses at each balance sheet date whether there is any indication that an asset may be impaired. If any such indication exists, the company estimates the recoverable amount of the asset. If such recoverable amount of the asset or the asset or the recoverable amount of the cash-generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognized in the profit and loss account. If at the balance sheet date there is an indication that if a brviously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount.

n. Provisions and Contingent Liabilities:

The company recognizes a provision when there is a brsent obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a brsent obligation that may, but probably will not, require an outflow of resources. Where there is possible obligation of a brsent obligation that the likelihood of outflow of resources is remote, no provision or disclosure is made. 

29. OTHER NOTES FORMING PART OF ACCOUNTS

2. Capital commitments not provided for on account of pending execution (net of advance) - Rs. NIL (Previous Year Rs. NIL). 

3. The Company has entered into an agreement with HCL Agro Power Limited for purchase of 1.5 M.W. of power per hour from 1.7.2013 on a captive basis and relevant declarations have also been given to APSPDCL. Payments were made periodically calculating the power requirements but as their generation did not stabilize, no power was flown till March 2015. However, the company is confident of recovering the moneys so far paid.

4. There are no delays in payments to Micro and Small Enterprises as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006. The information regarding Micro and Small enterprises has been determined to the extent such parties have been identified on the basis of information available with the Company. This has been relied upon by the Auditors.

5. Excise Duty amounting to Rs. 393,680/- on Closing Stock of finished Goods has been provided during the year to comply with ' Guidance Note on Accounting treatment for Excise duty' issued by Institute of Chartered Accountants of India. 

8. Amount of borrowing costs capitalized during the year Rs. Nil.

9. Segmental Information:

Since the company has only one segment, i.e.; Cement Manufacturing, Separate information

on Segment reporting as per the Accounting Standard 17 "Segment Reporting" issued by the

Institute of Chartered Accountants is not required.  

13. Under Section 135 of The Companies Act, 2013 the company is required to spend Rs.13,72,660/- during the year under review towards Corporate Social Responsibility (CSR). However, the Company has not spent any amount.

14. The debrciation on various assets, recomputed in accordance wth part "C" of Schedule II of the Companies Act, 2013. Hence, the transitional effect on account of such re-computation, to the extent of Rs. 18,89,356/- has been adjusted against the opening General Reserve as on 1st April 2014. Refer Note No. 9 - Fixed Assets.

15. Sundry debtors, creditors and loans and advances are subject to confirmation.

16. Previous year's figures have been regrouped wherever necessary to confirm to the current year's classification.

As per our report of even date

For B PURUSHOTTAM & CO

Chartered Accountants

(Firm Regn.No.002808S)

B.S. PURSHOTHAM

PARTNER

M No : 026785

for and on behalf of the Board

p Ravj Chairman

Vjvek SJvaraman Director & CEO

Velli Paramasivam SeCretary

PLACE : CHENNAI

DATE : 12.08.2015