(a) Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past
event and it is probable that an outflow of resources, that can be reliably estimated, will be required to settle such
an obligation.
(b) Contingent liability is disclosed in books for a present obligation arising from past events where it is not probable
that an outflow of resources will be required to settle the obligation and a reliable estimate is not possible.
Contingent assets are disclosed where an inflow of economic benefits is probable. Provisions, contingent liabilities
and contingent assets are reviewed at each Balance Sheet date.
Government grants which the company is entitled to based on investments made under State Investment Promotion
Scheme. The grant amount periodically computed based on income linked with VAT / GST payment are recognised in
the Statement of Profit and Loss in the period in which there is reasonable assurance that money becomes receivable.
The benefit of a government loan at below current market rate of interest is treated as a government grant. The loan is
recognised and measured in accordance with Ind AS 109. The benefit of the below market rate of interest/ interest free
loans is measured as the difference between the initial carrying value of the loan determined in accordance with Ind
AS 109 (at Fair Value) and the proceeds received, which is disclosed as deferred income liability. Government grant is
recognised in the statement of profit and loss on a systematic basis by transferring from deferred income liability over
the period of the loan during which the entity recognises as interest expense, the related costs for which the grants are
intended to compensate.
1C(xvii) LeasesAs a Lessee
The Company recognizes a right to use asset and the lease liability from the lease commencement date. The leased
asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease
payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs
to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less
any lease incentives received. The leased asset is subsequently depreciated using the straight-line method from the
commencement date to the end of the lease term. The Company uses its incremental borrowing rate as the discount
rate. The lease liability is subsequently measured at amortised cost using the effective interest method.
The Company applies the short-term lease recognition exemption to those leases that have a lease term of 12 months
or less (Short term Leases) from the commencement date and do not contain a purchase option. Lease payments on
short-term leases are recognised as expense on a straight-line basis over the lease term.
1C(xviii) 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. Financial assets and financial liabilities are recognised when a Company becomes a party
to the contractual provisions of the instruments.
Initial Recognition:
Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable
to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at
fair value through profit or loss and ancillary costs related to borrowings) are added to or deducted from the fair value of
the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to
the acquisition of financial assets or financial liabilities at fair value through profit or loss are charged to the Statement
of Profit and Loss over the tenure of the financial assets or financial liabilities. However, trade receivables that do not
contain a significant financing component are measured at transaction price (net of variable consideration).
Classification and Subsequent Measurement:
(a) Financial Assets:
The Company classifies financial assets as subsequently measured at amortised cost, Fair Value through Other
Comprehensive Income (“FVOCI”) or Fair Value through Profit or Loss (“FVTPL”) on the basis of following:
• the entity's business model for managing the financial assets and
• the contractual cash flow characteristics of the financial asset.
Amortised Cost:
A financial asset shall be classified and measured at amortised cost if both of the following conditions are met:
• the financial asset is held within a business model whose objective is to hold financial assets in order to collect
contractual cash flows and
• the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding.
In case of financial assets classified and measured at amortised cost, any interest income, foreign exchange gains or
losses and impairment are recognised in the Statement of Profit and Loss.
Fair Value through OCI (FVTOCI):
A financial asset shall be classified and measured at fair value through OCI if both of the following conditions are met:
• the financial asset is held within a business model whose objective is achieved by both collecting contractual cash
flows and selling financial assets and
• the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding.
Fair Value through Profit or Loss (FVTPL):
A financial asset shall be classified and measured at fair value through profit or loss unless it is measured at amortised
cost or at fair value through OCI.
For financial assets at FVTPL, net gains or losses, interest or dividend income, are recognised in the Statement of
Profit and Loss.
All recognised financial assets are subsequently measured in their entirety either at amortised cost or fair value,
depending on the classification of the financial assets. Financial assets are not reclassified subsequent to their initial
recognition unless the company changes its business model for managing financial assets, in which case all affected
financial assets are reclassified on the first day of the first reporting period following the change in the business model.
Classification and Subsequent Measurement:
Financial liabilities:
Financial liabilities are classified as either Financial Liabilities at FVTPL or Other Financial Liabilities.
Financial Liabilities at FVTPL:
Financial liabilities are classified as at FVTPL when the financial liability is held for trading or is a derivative (except for
effective hedge) or are designated upon initial recognition as FVTPL.
Gains or Losses, including any interest expense on liabilities held for trading are recognised in the Statement of Profit
and Loss.
Other Financial Liabilities:
Other financial liabilities (including borrowings and trade and other payables) are subsequently measured at amortised
cost using the effective interest method.
The effective interest rate is the rate that exactly discounts estimated future cash payments (including all fees and
points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or
discounts) through the expected life of the financial liability, or (where appropriate) a shorter period, to the amortised
cost on initial recognition.
Interest expense (based on the effective interest method), foreign exchange gains and losses, and any gain or loss on
derecognition is recognised in the Statement of Profit and Loss.
Impairment of financial assets:
Expected credit losses are recognized for all financial assets subsequent to initial recognition other than financials
assets in FVTPL category. For financial assets other than trade receivables, as per Ind AS 109, the company recognises
12 month expected credit losses for all originated or acquired financial assets if at the reporting date the credit risk of
the financial asset has not increased significantly since its initial recognition. The expected credit losses are measured
as lifetime expected credit losses if the credit risk on financial asset increases significantly since its initial recognition.
The Company's trade receivables do not contain significant financing component and as per simplified approach, loss
allowances on trade receivables are measured using provision matrix at an amount equal to life time expected losses
i.e. expected cash shortfall.
The impairment losses and reversals are recognised in Statement of Profit and Loss.
Derecognition of financial assets and financial liabilities:
The company derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or
when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another
party. If the company neither transfers nor retains substantially all the risks and rewards of ownership and continues to
control the transferred asset, the company recognises its retained interest in the asset and an associated liability for
amounts it may have to pay. If the company retains substantially all the risks and rewards of ownership of a transferred
financial asset, the company continues to recognise the financial asset and recognises an associated liability for
amounts it has to pay.
On derecognition of a financial asset, the difference between the asset's carrying amount and the sum of the consideration
received and receivable and the cumulative gain or loss that had been recognised in OCI and accumulated in equity
is recognised in the Statement of Profit and Loss.
The Company de-recognises financial liabilities when and only when, the company's obligations are discharged,
cancelled or have expired. The difference between the carrying amount of the financial liability de-recognised and the
consideration paid and payable is recognised in the Statement of Profit and Loss.
Financial Guarantee Contract Liabilities
Financial Guarantee Contract Liabilities are disclosed in financial statements in accordance with Ind AS 109, Financial
Instruments.
Offsetting of Financial Instruments:
Financial assets and financial liabilities are offset and the net amount presented in the balance sheet when, and only
when, the company currently has a legally enforceable right to set off the amounts and it intends either to settle them
on a net basis or to realise the asset and settle the liability simultaneously.
(b) Financial Liabilities and Equity instruments:Classification as debt or equity:
Debt and equity instruments issued by the company are classified as either financial liabilities or as equity in accordance
with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.
Equity instruments:
An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of
its liabilities. Equity instruments issued by a Company are recognised at the proceeds received.
Basic Earnings Per Share (“EPS”) is computed by dividing the net profit / (loss) after tax for the year attributable to
the equity shareholders by the weighted average number of equity shares outstanding during the year. The weighted
average number of equity shares outstanding during the year is adjusted for treasury shares.
For the purpose of calculating diluted earnings per share, net profit / (loss) after tax for the year attributable to the
equity shareholders is divided by the weighted average number of equity shares which could have been issued on the
conversion of all dilutive potential equity shares and is adjusted for the treasury shares held by the Holding Company
to satisfy the exercise of the share options by the employees.
1C(xx) Derivative Financial Instruments:
The Company enters into derivative financial instruments viz. foreign exchange forward contracts, interest rate swaps
and cross currency swaps to manage its exposure to interest rate, foreign exchange rate risks and commodity prices.
The company does not hold derivative financial instruments for speculative purposes.
Derivatives are initially recognised at fair value at the date the derivative contracts are entered into and are
subsequently remeasured to their fair value at the end of each reporting period. The resulting gain or loss is recognised
in the Statement of Profit and Loss immediately excluding derivatives designated as cashflow hedge or used in a net
investment hedge.
1C(xxi) Hedge Accounting:
The company designates certain hedging instruments in respect of foreign currency risk, interest rate risk and
commodity price risk as cash flow hedges. At the inception of the hedge relationship, the entity documents the
relationship between the hedging instrument and the hedged item, along with its risk management objectives and its
strategy for undertaking various hedge transactions. Furthermore, at the inception of the hedge and on an ongoing
basis, the company documents whether the hedging instrument is highly effective in offsetting changes in fair values
or cash flows of the hedged item attributable to the hedged risk.
The effective portion of changes in the fair value of the designated portion of derivatives that qualify as cash flow
hedges is recognised in OCI and accumulated under equity. The gain or loss relating to the ineffective portion is
recognised immediately in profit or loss.
Amounts previously recognised in OCI and accumulated in equity relating to effective portion as described above
are reclassified to Statement of Profit or Loss in the periods when the hedged item affects the Statement of Profit or
Loss, in the same line as the recognised hedged item. However, when the hedged forecast transaction results in the
recognition of a non-financial asset or a non-financial liability, such gains and losses are transferred from equity and
included in the initial measurement of the cost of the non-financial asset or non-financial liability.
Hedge accounting is discontinued prospectively when the hedging instrument expires or is sold, terminated, or
exercised, or when it no longer qualifies for hedge accounting. Any gain or loss recognised in OCI and accumulated
in equity at that time remains in equity and is recognised when the forecast transaction is ultimately recognised in the
Statement of Profit and Loss. When a forecast transaction is no longer expected to occur, the gain or loss accumulated
in equity is recognised immediately in the Statement of Profit and Loss.
1C(xxii) Segment Reporting - Identification of Segments:
An operating segment is a component of the Company that engages in business activities from which it may earn
revenues and incur expenses, whose operating results are regularly reviewed by the company's Chief Operating
Decision Maker (“CODM”) to make decisions for which discrete financial information is available. Based on the
management approach as defined in Ind AS 108, the CODM evaluates the Company's performance and allocates
resources based on an analysis of various performance indicators by business segments and geographic segments.
The company applies the acquisition method in accounting for business combinations. The consideration transferred
by the company to obtain control of a business is calculated as the sum of the fair values of assets transferred,
liabilities incurred and the equity interests issued by the company as at the acquisition date i.e. date on which it obtains
control of the acquiree which includes the fair value of any asset or liability arising from a contingent consideration
arrangement. Acquisition-related costs are recognised in the Statement of Profit and Loss as incurred, except to the
extent related to the issue of debt or equity securities.
A business combination involving entities or businesses under common control is a business combination in which
all of the combining entities or businesses are ultimately controlled by the same party or parties both before and
after the business combination and the control is not transitory. The transactions between entities under common
control are specifically covered by Ind AS 103. Such transactions are accounted for using the pooling-of-interest
method. The assets and liabilities of the acquired entity are recognised at their carrying amounts of the Company's
financial statements. The components of equity of the acquired companies are added to the same components within
the Company's equity. The financial statements in respect of prior periods have been restated as if the business
combination had occurred from the beginning of the preceding period in the financial statements.
Identifiable assets acquired and liabilities assumed in a business combination are measured initially at their fair values
on acquisition-date.
Intangible Assets acquired in a Business Combination and recognised separately from Goodwill are initially recognised
at their fair value at the acquisition date (which is regarded as their cost).
Subsequent to initial recognition, intangible Assets acquired in a Business Combination are reported at cost less
accumulated amortisation and accumulated impairment losses, on the same basis as intangible assets that are
acquired separately.
Goodwill is measured as the excess of the aggregate of the consideration transferred and the amount recognised
for non-controlling interests, and any previous interest held, over the net identifiable assets acquired and liabilities
assumed. A cash generating unit (CGU) to which goodwill has been allocated is tested for impairment annually, or
more frequently when, there is an indication that the unit may be impaired. If the recoverable amount of the CGU is less
than its carrying amount, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated
to the unit and then to the other assets of the unit pro-rata based on the carrying amount of each asset in the unit. Any
impairment loss for goodwill is recognised in profit or loss. An impairment loss recognised for goodwill is not reversed
in subsequent periods.
Where goodwill has been allocated to a CGU and part of the operation within that unit is disposed of, the goodwill
associated with the disposed operation is included in the carrying amount of the operation when determining the
gain or loss on disposal. Goodwill disposed in these circumstances is measured based on the relative values of the
disposed operation and the portion of the CGU retained. If the fair value of the net assets acquired is in excess of the
aggregate consideration transferred, the excess is termed as bargain purchase.
When a business combination is achieved in stages, the company's previously held equity interest in the acquiree is re¬
measured to its acquisition-date fair value and the resulting gain or loss, if any, is recognized in Other Comprehensive
Income.
Contingent consideration is classified either as equity or financial liability. Amount classified as financial liability are
subsequently re-measured to fair value with changes in fair value recognised in statement of profit and loss.
Terms / Rights / restrictions attached to shares
The company has only one class of Equity share. Each share has a paid up value of '10/- Every shareholder is entitled to one
vote per share, except for the holders of Global Depository Shares , as given below:
During the year 2005-06, the company allotted 5,12,27,592 underlying equity shares of '10/- each represented by 2,56,13,796
Global Depository Shares (GDS) in the ratio of 2:1. Holders of these GDSs have no voting rights with respect to the Deposited
shares.
During the years 2024-25 and 2025-26, the company has not declared any dividend.
During the year 2017-18, pursuant to the Scheme of Amalgamation of Trinetra Cement Limited and Trishul Concrete Products
Limited (Transferor Companies) with The India Cements Limited (Transferee Company) approved by the Hon'ble National
Company Law Tribunal, Division Bench, Chennai, vide its Order dated 20.04.2017, the Company has allotted, in June 2017,
9,73,544 equity shares of '10/- each fully paid-up to the eligible shareholders of Trinetra Cement Limited and erstwhile Trishul
Concrete Products Limited.
Shares reserved for issue under Employee stock option scheme:
As recommended by the Compensation Committee, the Board of Directors has granted, as on 01.04.2017, 18,35,000 options to
eligible employees under Employees Stock Option Scheme, 2016 (Scheme). The options granted under the Scheme got vested
with the employees on 01.04.2018 and the vested options were to be exercised within one year from the date of vesting. On
exercise of each option, one equity share of '10/- each fully paid-up were to be allotted at a price of ' 50/- per share, including a
premium of '40/- per share.
Out of the above, 17,45,000 Stock Options were vested on 01.04.2018 and the balance 90,000 Stock Options were cancelled.
During the year 2018-19, all the 17,45,000 options were exercised by the Option holders and equal number of equity shares were
allotted to them. Consequently the paid up equity share capital stands at '309.90 Crores.
Note 22.1: Supplier's Credit (Included in Acceptances)
Supplier's Credit represents the extended interest bearing credit offered by the supplier which is secured against Usance Letter of
Credit (LC). Under this arrangement, the supplier is eligible to receive payment from negotiating with bank prior to the expiry of the
extended credit period. The interest of the extended credit period payable to the bank on maturity of the LC has been presented
under Finance Cost.As at the reporting date, the carrying amount of trade payables subject to supplier finance arrangements was
'25,292.74 Lakhs (previous year: ' 6,838.06 Lakhs). The payment terms for such balances range between 0 to 180 days, which
are comparable to the Company's standard trade credit terms.
Cash outflows related to these arrangements are classified as cash flows from operating activities in the statement of cash flows.
Notes:-
1. Loans to Employees as per Company's policy are not considered.
2. None of the Loanees / Loanee Subsidiaries have per se made any investment in the shares of the Company. However,
pursuant to the scheme of Amalgamation approved by the Honorable High Court of Judicature at Madras, the Company
has issued equity shares to the Shareholders of Visaka Cement Industry Limited. [Visaka]. As per the said Order, 400
lakh shares of the Company have been allotted in aggregate, to the shareholders of transferor company of which 199.54
Lakhs shares to the subsidiaries of the company were held in a Trust on their behalf, (where the initial period Trust has
expired and the same has been extended). The entire shareholding has been transferred during the FY 2024-25 to
UltraTech Cement Company Ltd. vide SPA dated 28.07.2024
Fair Value Hierarchy
The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:
Level 1: Quoted (Unadjusted) prices in active markets for identical assets or liabilities
Level 2: Other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either
directly or indirectly
Level 3: Techniques which use inputs that have a significant effect on the recorded fair value that are not based on observable
market data.
37.13 Employee Benefits:
A. Employee Benefits:
Leave of absence and encashment:
The Company has different leave plans including paid leave of absence plans and encashment of leave plans for employees
at different grades and provision has been made in accordance with Ind AS 19. The total amount of provision available for
the unavailed leave balances as at 31st March 2026 is ' 2,503.72 Lakhs (as at 31st March 2025: ' 2,179.78 Lakhs). Liability
has been created based on actuarial valuation done during the year, with the Discount rate of 7.20% (Prev. Year 6.49%)
C. Defined Benefit Plan:
The details of parameters adopted for valuation of post-employment benefit plans and leave benefits, as per Ind AS 19, are
as under:
(a) Contribution to Pension Funds:
The company offers pension plans for managerial grade employees. While some of the employees are eligible for Defined
Benefit Plan of Pension, others are eligible for Defined Contribution Plan of Pension. The Defined Benefit Plans of pension
are managed by Life Insurance Corporation of India and the provision has been made on the basis of actuarial valuation
(b) Gratuity:
The employees are eligible for Gratuity benefits as per the Payment of Gratuity Act, 1972. The Gratuity Scheme is governed
by a Trust created for this purpose by the Company. The amount of Contribution to be made is arrived at based on an
actuarial valuation done at the Balance Sheet date.
37.14 (B) Additional regulatory Information required by Schedule III of Companies Act, 2013
1. Details of Benami property held:
No proceedings have been initiated on or are pending against the Company for holding benami property under the
Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.
2. Borrowing secured against current assets:
The Company has borrowings from consortium of banks based on security of its current assets. The Company has
been submitting stock, trade receivables, creditors statements and other financial information to the consortium of
banks on monthly basis as also the Quarterly Information Statements.
3. Willful defaulter:
The company has not been declared Willful defaulter by any bank or financial institution or government or any government
authority
4. Relationship with struck off companies:
The Company has transactions with the companies struck off under Companies Act, 2013 or Companies Act, 1956 and
below are the disclosure of dealings with struck off companies
5. Registration of charges:
Registration, Modification and Satisfaction of charges relating to the year under review, had been filed with the Registrar of
Companies (ROC), within the prescribed time or within extended time requiring the payment of additional fees.
6. Compliance with number of layers of companies:
The Company has complied with the number of layers prescribed under the Companies Act, 2013.
7. Compliance with approved scheme(s) of arrangements:
The accounting effect of the Scheme of Arrangement involving the Company's four wholly owned Indian subsidiaries, namely
ICL Securities Ltd., ICL Financial Services Ltd., ICL International Ltd., and India Cements Infrastructures Ltd., has been given
effect in the books of account in accordance with the applicable Indian Accounting Standards (Ind AS).
8. Utilization of borrowed funds and share premium:
The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities
(Intermediaries) with the understanding that the Intermediary shall directly or indirectly lend or invest in other persons or
entities identified in any manner whatsoever by or on behalf of the group (Ultimate Beneficiaries) or provide any guarantee,
security or the like to or on behalf of the ultimate beneficiaries.
The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with
the understanding (whether recorded in writing or otherwise) that the group shall 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
provide any guarantee, security or the like on behalf of the ultimate beneficiaries.
9. Undisclosed income:
There is no income surrendered or disclosed as income during the current or previous financial year in the tax assessments
under the Income Tax Act, 1961, that has not been recorded in the books of account.
10. Details of crypto currency or virtual currency
The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.
11. Valuation of Property, Plant and Equipment, intangible asset and investment property
The Company has not revalued its property, plant and equipment (including right-of-use assets) during the current financial
year.
12. Loans repayable on Demand or Without specifying any terms or period of repayment:
37.15 SECURITY CLAUSE FOR BORROWINGS [ Refer Note No.17]As on 31-03-2026
Item 1,2, 3 & 4 are secured by way of Pari Passu First Charge on the entire movable fixed assets of the Company, both
present and Future
As on 31-03-2025
Item 1, 2 & 3 are secured by way of Pari Passu First Charge on the entire movable fixed assets of the Company, both
present and Future
37.16 The Board in its meeting held on 26th April, 2025 approved amalgamation of the company's four wholly owned Indian
Subsidiaries, viz, ICL Securities Ltd, ICL Financial Services Ltd, ICL International Ltd and India Cements Infrastructures
Ltd, with the company (Scheme). The appointed date is 1st January, 2025. During the quarter ended 31st March 2026,
the Hon'ble National Company Law Tribunal (NCLT) passed an order sanctioning the scheme. The Order was filed with
the Registrar of Companies, Chennai and the Scheme has been made effective from 28th March 2026. Consequently, the
above mentioned wholly owned subsidiaries of the Company stand dissolved without winding up.
Since the amalgamated entities are under common control, the accounting of the said amalgamation had been done
applying Pooling of Interest method as prescribed in IndAS 103 Business Combinations. As per this method, the Company
has recorded all assets, liabilities and reserves attributable to the wholly owned subsidiaries at their carrying values as at
the appointed date. Consequently, the previous year ended March 31, 2025 figures had been restated from the date of
business combination i.e. January 01, 2025 being the appointed date.
Consequent to the amalgamation of the wholly owned subsidiaries into the Company, the Company recognised Deferred
Tax Assets on the business losses and other temporary differences in the current year as the scheme has been made
effective from March 28, 2026.
|