The company was incorporated on 20th 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.

2. Basis of Preparation

The Financial statements have been prepared 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 prepared under the historical cost convention on accrual basis.

3. OTHER NOTES FORMING PART OF ACCOUNTS :

1. Contingent Liabilities not provided for

                                                As on         As on
Particulars                                   31.03.2015    31.03.2014
                                              Rs.in Lakhs   Rs.in Lakhs

Bank Guarantees                                  48.14        48.14

Sales Tax Demand under APVAT (2005-06
and 2006-07) paid                                    -        20.26

Demand for Income tax for Asst year 2008-09 on re-opening the assessment was appealed and was awarded in our favour by the Commissioner, Hyderabad vide ITA No.0212/ DC-2(2)/CIT(A)-2/2014-15 Dt.27.2.15. - 265.86 Hence no provision during 2014-15.

Demand for Income tax for Asst year 2012-13 as per AO dated 31.3.15 is appealed before the Commissioner of Appeals-2, Hyderabad. 330.88 - The company is confident of favorable appeal and hence no liability is provided.

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.

6. Employee Benefits:

In accordance with Accounting Standard 15 "Employees Benefits", the Company has classified various benefits provided to employees as under:

i. Defined Benefit Plans:

Provision for Gratuity & Leave Encashment has been provided in accordance with AS-15 (Revised).

a) Disclosure relating to Employee benefits - As per AS 15 (Revised) For defined benefit plan - Gratuity (Projected Unit Credit Method)

Reconciliation of opening and closing balances of the present value of the defined benefit obligation

b) Other Employee Benefit Plan

The liability for Leave Encashment as at the year end is Rs.73,23,680 (previous year Rs.76,88,533) and the assumptions are as same as above.

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

8. 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.

9. Related Party Disclosures:

As required under Accounting Standard 18 "Related party Disclosures", following are details of transactions during the year with the related parties of the Company as defined in AS 18:

a) Name of the related parties and description of their relationship:

1. Key Managerial Personnel

Shri. P.RAVI (Chairman)

Shri. K.GOPI PRASAD (Managing Director)

Shri. VIVEK SIVA RAMAN (Director & CEO)

Mr. VELLI PARAMASIVAM (Company Secretary)

2. Director Interested Companies

M/s. HCL Agro Power Ltd

M/s. SRM Transport India Pvt Ltd

M/s SRM Civil Works Pvt Ltd

M/s. SRM Engineering Construction Corporation Ltd

M/s. SRM Global Cements Corporation Ltd

M/s. SRM Infrastructures Ltd

3 Relatives of Key Management Personnel

Shri. T.R.Pachamuthu

10. 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.

11. The depreciation on various assets, recomputed in accordance with 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.

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

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