(a) The Company has accounted for investments in Subsidiaries and Associates at Cost. Refer Note No.54(a) and Note No.54(b) for information on principal place of business / country of incorporation and the Company’s interest /percentage of shareholding in the above subsidiaries and associates.

(b) By virtue of execution of Share Subscription and Purchase Agreement for sale and transfer of its entire shareholding of 49,95,16,202 equity shares held in Associate viz. Lynks Logistics Limited (“Lynks”) to Bundl Technologies Private Limited (“Bund” operating under the brand name “Swiggy”), Lynks ceased to be an Associate with effect from 12-072023. Accordingly, the Company discontinued the cost model and measured such investment at its fair value through OCI in accordance with Ind AS 109 read with IndAS 28. Consequent to that, on 29-08-2023, the Company has sold and transferred such shares, being a non-core investment, and simultaneously acquired 24,07,244 Compulsory Convertible Preference Shares (CCPS) of Bund, in consideration of the sale of shares for a value equivalent to Rs.86.15 Crores. The cumulative net gain on the disposal of such non-core investment amounted to Rs.32.32 Crores is included under ‘Other Comprehensive Income’.

(c) The carrying amount of Investment in Subsidiaries / Associates is tested for impairment in accordance with Ind AS 36. These investments are strategic and long term in nature. Impairment testing is carried out for listed securities based on fair market value prevailing in stock exchange. However, in case of unlisted securities, impairment testing is carried out based on the recent trade transactions with third parties or DCF method or valuation report by an independent valuer as it may be appropriate. Accordingly, no impairment is considered necessary as at the reporting date.

(a) By virtue of merger of HDFC Limited with HDFC Bank with effect from 01-07-2023, the Company was allotted 29,232 shares of HDFC Bank in the ratio 42 shares for every 25 shares held. Consequent to merger, the Company held totally, 34,232 shares of HDFC Bank prior to the date of derecognition i.e sale. Subsequent to that, the Company has sold such equity shares for Rs. 5.68 Crores equivalent to fair value on the date of derecognition, as part of non-core asset disposal strategy. The cumulative gain and current year gain on the disposal of such investments, net of its direct expenses amounted to Rs. 5.67 Crores and Rs.0.31 Crores, respectively is included under ‘Other Comprehensive income’.

(b) The Company has disposed HDFC Mutual Fund during the year. The cumulative gain and current year gain on the disposal of such investments, net of its direct expenses amounted to Rs.0.40 Crores and Rs.0.11 Crores, respectively is included under ‘Other income’.

(c) The Company’s investment of Rs.22.12 Crores (16,08,000 equity shares, out of which 3,08,200 shares were held jointly with related party) in Andhra Pradesh Gas Power Corporation Limited (APGPCL) has helped so far to source 6 MW of power at economical rates from APGPCL compared to the rates charged by AP State Electricity Board. However, in view of cancellation of Natural Gas allocation for APGPCL by Ministry of Petroleum and Natural Gas, the price per unit is not commercially viable for the participating industries including the Company. Consequently, APGPCL ceased its operations, shut down its plants and terminated its workforce, which invited the attention of material uncertainty on APGPCLs ability to continue as a going concern. Considering the absence of immediate prospects for plant restoration and prevailing uncertainities, the fair value of APGPCL investments is determined as Nil and recognised the resulting loss in carrying amount of investments of Rs.22.12 Crores as ‘Fair value loss on investments’ in ‘Other Comprehensive income’ during current year. However, the Company shall re-assess the fair value at each reporting date based on various inputs like resumption of operations, availability of power at subsidized prices etc. and recognize the gain in subsequent period in ‘Other Comprehensive income’.

(d) The Company opted to designate the investment in CCPS of Bundl Technologies Private Limited, being instruments entirely equity in nature in accordance with ind AS 32 and certain other equity shares, measured at Fair Value through Other Comprehensive income (FVTOCi) in accordance with ind AS 109 as these investments are not held for trading purpose and disclosing their fair value fluctuation in profit or loss will not reflect the purpose of holding. Consequently, the Company recognises the subsequent fair value loss of Rs.2.58 Crores through ‘Other Comprehensive income’ during current year.

(a) Loans are non-derivative financial assets and are carried at Amortized Cost, which generate a fixed or variable interest income for the Company.

(b) Secured Loans and considered good are covered by way of deposit of original title deeds / hypothecation of assets / creation of second charge of the underlying immovable properties.

(c) Loans to Subsidiaries represent Rs.Nil (PY: Rs.4.20 Crores) towards outstanding loans in connection with funding for acquisition of capital asset and Rs. 10.10 Crores (PY: Rs. 10.54 Crores) towards working capital in the normal course of business.

(d) The Company has not granted any loan or advance in the nature of loan to promoters, directors, KMPs and other related parties that are repayable on demand; or without specifying any terms or period of repayment.

(e) The details of loans outstanding with KMPs given as per Company’s policy are furnished in Note No.55(c)(10).

(a) Secured Capita! Advances are covered by way of Bank guarantees.

(b) The Company was declared as the Preferred Bidder by Department of Mines and Geology, Government of Karnataka for the Bommanalli Limestone Block in Kalburgi District, Karnataka and have been issued Letter of Intent dated 11-05-2022 for the grant of mining lease. Accordingly, as per the terms of LOI for grant of ML, the Company has deposited Rs.40.31 Crores (PY: Rs.40.31 Crores) with Department of Mines & Geology, as at the reporting date, towards upfront payment which are eligible for adjustment against royalty payable, upon commencement of production of mineral.

(c) The Company has not given any advances to directors or other officers of the Company or any of them either severally or jointly with any other persons or advances to firms or private companies respectively in which any director is a partner or a director or a member.

(b) Trade receivables are neither due from directors or other officers of the Company either severally or jointly with any other person, nor any trade or other receivables are due from firms or private companies respectively in which any director is a partner, a director or a member.

(c) Trade receivables in respect of cement are generally non-interest bearing. The average collection period stood at 26 days for the year ended 31-03-2024 (PY: 18 days).

(d) The receivables due from the related parties are furnished in Note No.55(c)(1).

(e) The Company has derecognised trade receivables of certain customers amounting to Rs.574.72 Crores (PY: Rs.647.92 Crores) in view of factoring facility availed from banks on non-recourse basis. However, a sum of Rs.339.30 Crores,

being the amount directly remitted by the customers to the Company subsequent to factoring, is disclosed as other financial liabilities, which is payable to the bank on respective due dates as per the terms of factoring arrangement. [Refer Note No.34].

(f) Refer Note No.57 & 59(e) for information about risk profile of Trade Receivables under Financial Risk Management and Ageing Schedule respectively.

(g) The Company considers its maximum exposure to credit risk with respect to customers as at the reporting date to

be Rs.852.15 Crores (PY: Rs.464.96 Crores), which is the carrying value of trade receivables after allowance for

expected credit losses.

(h) The total carrying amount of trade receivables has been pledged as security for Short term Borrowings.

(a) Loans are non-derivative financial assets and are carried at Amortized Cost, which generate a fixed or variable interest income for the Company.

(b) Secured Loans and considered good are covered by way of deposit of original title deeds / hypothecation of assets / creation of second charge of the underlying immovable properties.

(c) Loans to Subsidiaries comprises Rs.2.23 Crores (PY: Rs.4.20 Crores) towards outstanding loans in connection with funding for acquisition of capital asset and Rs.2.60 Crores (PY: Rs.2.60 Crores) towards working capital in the normal course of business.

(d) The Company has not granted any loan or advance in the nature of loan to promoters, directors, KMPs and other related parties that are repayable on demand; or without specifying any terms or period of repayment.

(a) Freight rebate receivable from Railways under LTTC Scheme: Nil (PY: Rs. 126.50 Crores) is included in ‘Claims receivable’.

(b) Industrial Promotion Assistance receivable represents amount receivable from Government of Andhra Pradesh.

(c) Unbilled Revenue being Contract assets represent power transmitted to grid for which the billing is done in the subsequent period as per the terms agreed with customer including the billing cycle.

(a) Unadjusted advances pertaining to related parties of Rs.2.01 Crores (PY: Rs.2.18 Crores) included in Advances to Suppliers & Service providers are included in Note No.55(c)(3).

(b) Tax Credit - Indirect taxes represent un-utilised input tax credit availed under GST. These credits are available for set-off in the subsequent periods.

(c) The Company has not given any advances to directors or other officers of the Company or any of them either severally or jointly with any other persons or advances to firms or private companies respectively in which any director is a partner or a director or a member.

(ii) Term/Rights/Restrictions attached to Equity Shares

The Company has one class of equity shares having a face value of Re.1/- each. Each shareholder is eligible for one vote per share held. The Company declares and pays dividend in Indian Rupees. In the event of liquidation of the company, the equity shareholders will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

(v) The Company do no have any shares held by its holding company or its ultimate holding company including shares held by subsidiaries or associates of the holding company or the ultimate holding company.

(vi) There are no instances of bonus shares issued, shares issued for consideration other than cash and shares bought back during the period of 5 years immediately preceding the Balance Sheet date. Further, there are no shares reserved for issue under options and contracts or commitments for the sale of shares or disinvestment.

(vii) The Company do not have any calls unpaid by directors or officers of the Company.

Nature of Reserve

Capital Redemption Reserve was created for a sum equivalent to its face value at the time of Buy-back of Shares. The Company can use this reserve for issuing fully paid up Bonus shares.

Nature of Reserve

Securities Premium was credited when shares are issued at a premium. The Company can use this reserve to issue bonus shares, to provide for premium on redemption of shares or debentures, preliminary expenses and the commission paid or discount allowed on, any issue of shares or debentures of the Company.

Nature of Reserve

General Reserve represents the statutory reserve in accordance with Companies Act, 2013 wherein a portion of profit is apportioned to general reserve. Under Companies Act, 1956 it was mandatory to transfer amount before a Company can declare dividend, however under Companies Act, 2013 transfer of any amount to General reserve is at the discretion of the Company.

Nature of Reserve

Fair Value through Other Comprehensive Income Reserve represents the balance in equity for items to be accounted in Other Comprehensive Income (OCI). The Company has opted to recognise the changes in the fair value of certain investments in equity instruments and remeasurement of defined benefit obligations in OCI. The Company transfers amounts from this reserve to Retained Earnings in case of actuarial loss / gain and in case of fair value recognition of equity instrument, the same will be transferred when the respective equity instruments are derecognised.

(iv) As per Companies (Share capital and Debentures) Amendment Rules 2019 notified on 16-08-2019, Debenture Redemption Reserve is not required to be created for privately placed debentures issued by listed companies. Since the Company has issued debentures by way of private placement, the debenture redemption reserve is not created.

(v) The transaction cost on issue of NCDs pertaining to Series I, Series J Series K Series L, Series M, Series N is adjusted against NCDs upon initial recognition and the same is amortised based on Effective Interest Rate method over the tenure of the Borrowings based on Amortized Cost model in accordance with Ind AS 109. The un-amortised transaction cost adjusted against NCDs as at the reporting date is Rs.3.17 Crores (PY: Rs.2.31 Crores). The Company has not incurred transaction cost in respect of NCD Series E, Series G & Series H, consequently coupon rate remains the effective interest rate for such NCD Series.

(c) Soft Loan from Government

(i) The Company has opted to apply the fair value measurements for the loans availed at a concessional rate prospectively and accordingly, the Company has used its previous GAAP carrying amount of the loan at the date of transition to Ind AS as the carrying amount of the loan in the opening Ind AS Balance sheet. The Company has measured the loans at fair value which are availed at a concessional rate subsequent to transition date. The difference between fair value of the loan and the carrying amount is classified as Deferred Grant.

(d) Interest free Deferred Sales tax Liability

(i) The Company has opted to apply the fair value measurements for the loans availed at a concessional rate prospectively and accordingly, the Company has used its previous GAAP carrying amount of the loan at the date of transition to IndAS as the carrying amount of the loan in the opening IndAS Balance sheet. The Company has not availed any interest free loan after the transition date.

(ii) The Company has availed Interest free Deferred Sales tax liability from State Government under Deferral Sales tax scheme for the Investments made in Jayanthipuram plant, which are measured at transaction value.

(c) Loans and advances from Director represents amount due to Managing Director, which carry an interest rate linked to SBI one-year Domestic Bulk Term Deposit Interest rate. The interest accrued during the year amounts to Rs. 0.07 Crores (PY: Rs.0.04 Crores).

(d) Other Short term borrowings availed during the year carry interest rates ranging from 6.95% to 782% p.a.in respect of Loan from Banks and 7.10°% to 7.84°% in respect of Commercial Papers.

(e) The Company has used the borrowings from banks and financial institutions for the specific purpose for which it was taken as at the reporting date.

(f) Refer Note No. 57 for information about risk profile of borrowings under Financial Risk Management.

(a) Amount recognised in Other Comprehensive Income represent remeasurement losses on defined benefit obligations i.e Gratuity fund, recognised in OCI.

(b) Refer Note No. 50 & 51 for disclosures pertaining to defined contribution plan and defined benefit obligations under Ind AS 19.

(c) Refer Note No. 60 for the information relating to amount of expenditure recognized in the carrying amount of an item of Property, Plant and Equipment in the course of its construction, included in Capital Work-in-Progress.

(d) The Central Government has published The Code on Social Security, 2020 and Industrial Relations Code,2020 (“the codes”) in the Gazette of India, interalia, subsuming various existing labour and industrial laws which deals with employees including post-employment period. The effective date of the code and the rules are yet to be notified. The impact of the legislative changes if any will be assessed and recognized post notification of relevant provisions.

(e) Employee Benefits Expense include Rs.0.97 Crores (PY: Rs.0.86 Crores) pertaining to employees working under CSR Division of the Company, which qualify as Administrative Overheads in accordance with Section 135 of the Companies Act, 2013 read with Companies (Corporate Social Responsibility Policy) Rules, 2014.

(a) Interest on Loans and Debentures represent interest calculated using the effective interest rate method.

(b) The above Finance Costs is net of capitalised portion of Rs. 78.24 Crores (PY: Rs. 105.92 Crores) attributable to the qualifying assets [Refer Note No.60].

(c) Others include unwinding of discounts on provisions of Rs.5.96 Crores (PY: Rs.4.58 Crores) and Rs.Nil (PY: Rs. 0.90 Crores) towards interest on shortfall in payment of advance tax.

(d) Refer Note No. 57 for information about Interest rate risk exposure under Financial Risk Management.

(e) Donations include Contributions to Chief Minister’s Relief Fund, Sikkim amounting to Rs.0.50 Crores (PY: Nil)

(f) The Company is required to spend gross CSR expenditure of Rs. 15.99 Crores for the year (PY: Rs. 18.10 Crores) in accordance with Section 135 of the Companies Act, 2013 read with Companies (Corporate Social Responsibility Policy) Rules, 2014. As against this, the Company has spent Rs. 19.49 Crores (PY: Rs. 1729 Crores) in the following categories, in cash, for the purposes other than the construction / acquisition of assets and Rs.0.97 Crores (PY: Rs.0.86 Crores) towards employee benefits expenses pertaining to employees working under CSR division. Consequently the Company has spent an excess of Rs.4.47 Crores (PY: 0.05 Crores) for the year and carried forward excess spent CSR of Rs.5.33 Crores (PY: 3.73 Crores) as at the reporting date, which is eligible for adjustment in subsequent years.

Notes: In respect of contingent liability covered under Note No.48.2:

(a) It is not practicable for the Company to estimate the timings of cash outflows, if any pertaining to the pending resolution of the respective disputes, as it is determinable only on receipt of judgements from the respective appellate authorities.

(b) The Company does not expect any reimbursements in respect of the above contingent liabilities.

(c) The Company has reviewed all its pending litigations and proceedings and has adequately provided for where provisions are required, or disclosed as contingent liabilities where applicable.

48.2.11 ncome tax assessments have been completed up to the accounting year ended 31-03-2022 i.e., Assessment Year 2022-23. The company has preferred appeals before appellate authorities in respect of various disallowances in assessments and the appeals are pending. As against the tax demand of Rs.150.16 Crores (PY: Rs.158.57 Crores), the Company has paid so far Rs.18.83 Crores (PY: Rs.18.83 Crores) as pre-deposit in compliance of Income tax laws for filing appeals with appellate authorities. Besides, the department had appropriated Rs.8.40 Crores (PY: Rs.2.99 Crores) against refund due / tax credits. The amount paid and the refunds appropriated so far are held in “Deposits under protest, in appeals” under other non-current assets.

Out of the disputed tax demands of Rs.150.16 crores (PY: Rs.158.57 Crores), a sum of Rs.75.53 Crores (PY: Rs.99.93 Crores) may not crystalize into a liability since the similar issues covered under the appeals are backed by judgements in favour of the company. In respect of issues decided in company’s favour before lower authorities, the department has preferred appeals for the disputed tax amounting to Rs.6705 Crores (PY: Rs.48.57 Crores), which is pending before various appellate fora. The management believes that the above issues may not crystalize into tax liability based on the decisions favourable to the Company.

Besides the above, the Income Tax officer, National Faceless Assessment Centre has passed a final assessment order dated 13-11-2023 for the Assessment year 2021-22 with a demand of Rs.21.41 Crores, without complying the mandatory statutory provision of issuing a draft assessment order as required under Section 144C of Income Tax Act, 1961. Aggrieved by the Assessment order, the Company had filed a Writ Petition before Madras High Court. Though the High Court set aside the demand, converted the impugned Assessment order into a draft Assessment order and directed the Company to file an appeal before the Dispute Resolution Panel (DRP). Aggrieved by the said direction of converting the final order into a draft assessment order, the Company preferred Writ Appeal before the Division Bench of Madras High court and obtained an interim order of status quo. The Appeal is now pending before Madras High Court.

48.2.2 I n respect of pending appeals before the appellate authorities under State Sales Tax Acts / VAT Acts & CST Act in various states, as against net tax demands amounting to Rs.9.83 Crores (PY: Rs.9.80 Crores), a sum of Rs.3.23 Crores (PY: Rs.3.23 Crores) have been paid as pre-deposits. Consequently, Rs.6.60 Crores (PY: Rs. 6.57 Crores) remain un-paid as at the reporting date. The amount paid under protest is held in “Deposits under protest, in appeals” under other non-current assets.

I n respect of appeals filed by the company under GST Acts before the appellate authorities against the demand of Rs. 65.99 Crores (PY: Rs. 46.20 Crores) towards the disallowances of post supply discounts given to buyers among other disallowances including levy of interest for the period from 2017-18 to 2022-23, a sum of Rs. 4.47 Crores (PY: Rs. 2.16 Crores) have been paid as pre-deposits. The amount paid is held in “Deposits under protest, in appeals” under other non-current assets. Consequently, Rs.61.52 Crores (PY: Rs. 44.04 Crores) remain un-paid as at the reporting date.

The Management believes that these demands may not crystalize into a liability since the requisite documentary evidences are available backed by favourable judgements at higher judicial forums.

48.2.3 In respect of levy of differential Excise Duty on bulk cement and supplies to industrial consumers, levy of excise duty on cement / dry mortar based on MRP including interest and penalty amounting to Rs.133.93 Crores (PY: Rs.140.92 Crores) demanded by the Department, a sum of Rs.129.29 Crores (PY: Rs.136.13 Crores) remain un-paid as at the reporting date. The Company has paid so far Rs.4.64 Crores (PY: Rs.4.79 Crores) as pre-deposit in compliance of the interim orders by the appellate authorities and is held in “Deposits under protest, in appeals” under other non-current assets as at the reporting date. The levy of excise duty on cement has been decided by various tribunals in favour of the industry including the company. The management believes that out of the disputed demands of Rs.133.93 Crores (PY: Rs.140.92 Crores), a sum of Rs.125.07 Crores (PY: Rs.128.73 Crores) may not crystalize into a liability since the issues covered under the appeals are backed by favourable judgements from various tribunals. However, in the matter of levy of excise duty on cement, the department has preferred appeal before the Hon’ble Supreme Court against the favourable order received by the company for one of its units, which is pending.

In respect of disallowance of CENVAT credit on inputs, capital goods, service tax on goods transports agency amounting to Rs.193.58 Crores (PY: Rs.207.59 Crores), a sum of Rs.178.15 Crores (PY: Rs.192.13 Crores) remain un-paid as at the reporting date. The Company has paid so far Rs.15.43 Crores (PY: Rs.15.46 Crores) as pre-deposit in compliance of the interim orders by the appellate authorities and such pre deposits were held in “Deposits under protest, in appeals” under other non-current assets as at the reporting date. The management believes that out of the disputed demands of Rs.193.58 Crores (PY: Rs.207.59 Crores), a sum of Rs.150.14 Crores (PY: Rs.155.89 Crores) may not crystalize into a liability since the issues covered under the appeals are backed by favourable judgements.

48.2.4 TANGEDCO has raised a demand towards compensation charges of Rs.0.92 Crores alleging that the Company has exceeded the quota of power consumption during evening peak hours. The Company has filed writ petition before the High Court of Madras and the same has been admitted. However, the Company had deposited the amount of Rs.0.92 Crores under protest and the same is held in “Deposits under protest, in appeals” under other non-current assets.

48.2.5 Government of Karnataka has imposed Environmental Protection Fee of Rs.5.80 crores, in connection with Company’s mining leases. In the writ petitions filed by the Company and other similarly affected companies, the High Court of Karnataka, has stayed the imposition of the fee. As per the interim order, the Company has deposited a sum of Rs.2.90 Crores (PY: Rs.2.90 Crores) and the same is held in “Deposits under protest, in appeals” under other non-current assets.

48.2.6 The Competition Commission of India (CCI) vide its order dated 31-08-2016 had imposed a penalty of Rs. 258.63 Crores on the company towards alleged cartelisation. Our appeal along with the appeals of other cement companies had been dismissed by NCLAT vide its order dated 25-07-2018. Against the order, the company appealed to the Honourable Supreme Court, which by its order dated 05-10-2018 admitted the appeal and directed to continue the interim order passed by NCLAT. Accordingly, the company re-deposited Rs.25.86 Crores being 10% of the penalty and the said deposit is classified under “Bank Balances other than Cash and Cash Equivalents’.’ The Company backed by legal opinion, believes that it has a good case and hence no provision is made.

48.2.7 The Writ Petitions filed by the company in the Madras High Court against Tamil Nadu Electricity Board (TNEB) towards levy of electricity tax at 15% on the generation of power from captive generator sets using furnace oil are pending.

The levy pertains to the period 01-01-1992 to 30-10-1997 The total disputed amount of Rs.1.34 Crores has been paid under protest and the same is held in “Deposits under protest, in appeals” under other non-current assets.

48.2.8 Southern Power Distribution Company of Andhra Pradesh Limited has demanded an amount of Rs.0.32 Crores towards alleged excess load factor incentives allowed by them. The Company has filed an appeal before High Court of Andhra Pradesh and obtained an order of interim stay.

48.2.9 Andhra Pradesh Transmission Corporation Limited (APTRANSCO) has levied Rs.5.91 Crores as Fuel Surcharge Adjustment (FSA) for the period from April, 2008 to December, 2012. Out of that, the company has paid and expensed Rs.3.85 Crores and the balance amount of Rs.2.06 Crores is not presently enforceable for the reasons that a part of the amount is covered in the appeal filed by the APTRANSCO before Supreme Court and the interim order granted in favour of the company by the Honourable AP High court. APERC has ordered that this FSA is not leviable from January, 2013 onwards.

48.2.10 The Director of Geology & Mining, Government of Tamil Nadu had raised additional Royalty demand on limestone, based on production of cement by the company instead of basing it on actual quantity of limestone mined. The demand for the company is Rs.9.66 Crores for the period from the year 1989 to year 2001. In the Writ petitions filed by the company and other similarly affected companies, the Madras High court has directed the companies to pay the Royalty as demanded in the impugned notice. Aggrieved by that, the Company has filed a writ appeal against the impugned order and it is pending.

48.2.11 Water Resources Department of Public Works Department, Government of Tamil Nadu had raised a demand of Rs.1.13 Crores contending that water charges are to be paid on the contracted quantity and not on the actual quantity of water drawn by the company from Arjuna River in Virudhunagar District. The demand pertains to the period from the year 1990 to year 2009. The company has obtained interim stay from the High Court of Madras. As per the interim order, the Company has deposited a sum of Rs.0.30 Crores with the Department and the same is held in “Deposits under protest, in appeals” under other non-current assets.

48.2.12 Environment, Forests Science & Technology Department, Government of Andhra Pradesh has increased the Royalty on the Limestone mined from the Forest Area from Rs.5/- per permit to Rs.10/- per ton from the year 2010-11 onwards. The company filed a writ petition before the High Court of Andhra Pradesh and obtained an interim order, to pay 1/3^rd of the demand. As per the Court order, the company has paid and expensed Rs.1.57 Crores, being the 1/3^rd portion up to 31-03-2017 The balance amount of Rs.3.15 Crores being 2/3^rd portion remain unpaid. However, there is no dispute with effect from 01-04-2017 onwards.

48.2.13 Under Tamil Nadu Electricity Regulatory Commission (Renewable Energy Purchase Obligations) Regulations, 2010, consumers owning grid connected captive power generating plants and open access consumers with a sanctioned demand of more than 2 MVA are obligated to consume a minimum of 9% and 0.5% of their energy requirements from wind and solar sources respectively. The non-complainants are required to purchase Renewable Energy Certificates (REC) from markets @ 1 REC per 1,000 units of shortage or deposit an equivalent amount in a separate designated fund. Even though the Company is consuming wind energy generated from its wind farms, it has been excluded for reckoning the obligatory consumption, since the company has wheeling and banking arrangement with TNEB. Aggrieved, the Company including other affected producers have approached the Madras High Court and obtained an interim stay against the implementation of the said regulation.

48.2.14 The Company had purchased around 40.36 acres of lands in Tamil Nadu after verification of title documents based on revenue records of the year 1987 as basis. Thereafter, the revenue officials verified the title documents and transferred the patta in the name of the Company. While this being so, the Sub-Collector, Ariyalur, by the order dated 10-02-2015, cancelled the said patta and reclassified the said land as Government poromboke ‘Anadheenam lands’ by placing reliance on revenue records of the year 1927 The Company has filed a Writ Petition before the Madras High

Court challenging the said cancellation of patta and the High Court has remanded back to the Commissioner of Land Administration for fresh adjudication. The Company has filed application with necessary documents and it is pending for further hearing.

48.2.15 The Department of Mines and Geology, Government of Karnataka by its order dated 31-10-2014 withdraw its mining lease granted to the company already granted for 30 hectares of forest land on a technical ground. Based on the writ petition filed by the company, the Honourable Karnataka High court has directed the State Government to consider the company’s representation. The Government vide its order dated 10-01-2016 has rejected the company’s representation. Aggrieved by the said order, the Company has again filed a writ petition before the Honourable Karnataka High Court and the same is pending.

48.2.16 The Special Deputy Collector (Stamps), Ariyalur had issued a notice demanding an amount of Rs.0.65 Crores for alleged deficiency in stamp duty in purchase of lands. Against the demand, the Company filed an appeal before Honourable High Court of Madras and it is pending.

48.2.17 As per the Grid Connectivity and Intra State Open Access Regulations, the TNERC has authorised TANGEDCO to collect Parallel Operation Charges of Rs. 30,000/- per MW from the power generators whoever availing only parallel operation with grid but without availing open access. Even though the Company had open access approval, TANGEDCO had sent demand notice for parallel operation charges for a sum of Rs.9.17 Crores levied retrospectively from 07-052014 to 31-12-2016. The Company has filed writ petition in the Honourable High Court of Madras and obtained the final order directing the TANGEDCO to settle the matter in TNERC within a reasonable period. TNERC ordered that the levy of parallel operation charges was leviable. Aggrieved by the said order, the company has filed an appeal before Appellate Tribunal for Electricity (APTEL) and has obtained interim stay against the order of TNERC.

48.2.18 The company along with other companies have challenged the validity of the “The West Bengal Tax on Entry of Goods into Local Areas Act, 2012” in the writ petitions before the Kolkata High court. The court had held the said Act was ultra-vires. Aggrieved by that, the Government preferred an appeal before the Division bench. The bench had passed an interim order not to enforce any demand until disposal of the writ petitions but permitted the department to do the assessment proceedings. The estimated contingent liability for the period from August, 2013 to June, 2017 is Rs.9.24 crores. The company has paid and expensed the said taxes upto July, 2013 since inception.

The Asst. Commissioner (CT) LTU, Vijayawada has issued a demand on 12-02-2019 for Rs.1.29 crores for the period from April, 2014 to March, 2017 towards entry tax on petroleum products viz., Diesel, Furnace oil under the Andhra Pradesh Tax of Entry of Goods into Local Areas Act, 2001. The company had filed a writ petition before Honourable AP High court, Vijayawada against the demand. As per the interim order, the Company has deposited a sum of Rs.0.32 Crores (PY: Rs.0.32 Crores) with the Department and the same is held in “Deposits under protest, in appeals” under other non-current assets. The appeal is pending.

48.2.19 The Company had held Mining Lease for an extent of 18.11.5 Ha for a period of 20 years from 25-10-1993 to 24-102013, which holding was later reduced to 4.68 Ha of leasehold area. The Company received a Memorandum dated 26-08-2019 issued by the District Collector, Perambalur, wherein the Company was directed to remit the amount of Rs.6.59 Crores being the 100% of the cost of mineral of 1.45 Lac metric tons of limestone mined from our leasehold area covering the period from 15-01-2016 to 10-01-2017, allegedly without Environmental Clearance. The Company believes that there is no violation and hence initiated steps to challenge this demand by way of a Writ Petition before the Honourable High Court of Madras, was dismissed. The Company has filed an appeal before division bench against the impugned order and the appeal is disposed off with direction to District Collector, Perambalur for fresh adjudication.

48.2.20 Haldia Port had raised a demand of Rs.9.48 Crores towards differential port charges payable computed on the basis of shortfall in Minimum Guaranteed Tonnage (MGT) by the Company and invocated the Bank Guarantee furnished as security. Aggrieved by the action of the Port, the Company filed a Writ Petition WPA No.15628 of 2023 in the Calcutta High Court. The Court had passed an interim order directing the company to pay to the Port an amount of Rs.4.25 Crores being the admitted amount by the company and deposit the balance amount of Rs.5.23 Crores in a separate bank account, which would be subject to the outcome of the final orders in the said writ petition, which is pending. In compliance of the order of the Court, the Company has remitted a sum of Rs.4.25 Crores to the Port on 05-07-2023 and expensed it. A sum of Rs.5.23 Crores is kept in a Fixed Deposit account opened in the name of the Company and is classified under “Bank Balances other than Cash and Cash Equivalents’.’ The Company backed by legal opinion, believes that it has a good case and hence no provision is made.

48.2.21 Southern Power Distribution Company of Andhra Pradesh levied Electricity duty at the rate of Re. 1/- per KWh (in excess of Rs.0.06 Paise) on energy sales as per G.O M.s No. 7 Energy (Power-III) Department dated 08-04-2022 in contradiction to the orders passed by the Hon’ble High Court of Andhra Pradesh in the batch of Writ Petitions filed by several industries and without any sanction from the State Government as contemplated under APED Act. Therefore, the Company filed a Writ Petition before the High Court of Andhra Pradesh challenging the said G.O and further sought for a direction to refund the amount collected towards Electricity duty or adjust the excess electricity duty paid in terms of the impugned G.O. The Company has obtained an interim order of stay in respect to the demand. The said Writ Petition is pending. The company has also paid the differential amount of Rs.0.94 Paise per unit amounting of Rs.29 Crores from April, 2022 to March, 2024 towards disputed electricity duty and expensed it.

Note: During the current year, the Company employee’s superannuation fund was wound up and the proceeds were remitted to respective employees’ NPS account with due approval from competent authority. Consequently the contribution for current year is remitted to NPS in lieu of superannuation.

51 As per Ind AS 19, the disclosures pertaining to “Employee Benefits” are given below:

The Gratuity payable to employees is based on the employee’s service and last drawn salary at the time of leaving the services of the Company and is in accordance with the rules of the Company read with Payment of Gratuity Act, 1972. This is a defined benefit plan in nature. The Company makes annual contributions to “The Ramco Cements Limited Employees’ Gratuity Fund” administered by trustees and managed by LIC of India, based on the Actuarial Valuation by an independent external actuary as at the Balance Sheet date using Projected Unit Credit method. The Company has the exposure of actuarial risk such as adverse salary growth, change in demographic experience, inadequate return on underlying plan assets. This may result in an increase in cost of providing these benefits to employees in future. Since the benefits are lump sum in nature, the plan is not subject to any longevity risks.

(a) The above sensitivity analysis is based on a change in an assumption while holding all other assumptions constant. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (projected unit credit method) has been applied as and when calculating the defined benefit obligation recognised within the Balance Sheet.

(b) Increase or decrease in expected return on plan assets has no effect on gratuity obligation since it has no relevance for computing present value of gratuity obligation.

52. Disclosures on Leases Company as a Lessee

Nature of leasing activities

The Company has entered into operating lease on certain assets i.e land and building. Lease rentals are determined based on agreed terms. There is escalation clause in certain lease agreements after a specified period and no restriction imposed by the lease arrangements.

(a) Short-Term Benefits comprises of salaries, bonus, sitting fees, and value of perquisites.

(b) Post-employment benefit include defined contribution plan which comprises of contribution to Provident fund and contribution to National Pension System.

(c) As the liability for defined benefit plan under Post-employment benefits viz. Gratuity and Other Long-term benefits viz. compensated absences are provided on actuarial basis for the Company as a whole, amounts accrued pertaining to key managerial personnel are not included above.

56 Disclosure of Fair value measurements

The fair values of financial assets and liabilities are determined at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. Fair value of cash and short-term deposits, trade and other short term receivables, trade payables, other current liabilities, short term loans from banks and other financial instruments approximate their carrying amounts largely due to their short term maturities of these instruments.

Note: Though investments in subsidiaries and associates are presented within ‘Financial Assets’, Ind AS 107 disclosure requirements are not applicable.

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.

57 Financial Risk Management

The Board of Directors (BOD) has overall responsibility for the establishment and oversight of the Company’s risk management framework and thus established a risk management policy to identify and analyze the risk faced by the Company. Risk Management systems are reviewed by the BOD periodically to reflect changes in market conditions and the Company’s activities. The Company through its training and management standards and procedures develop a disciplined and constructive control environment in which all employees understand their roles and obligations. The Audit Committee oversees how management monitors compliance with the Company’s risk management policies and procedures, and

Credit Risk

Credit Risk is the risk of financial loss to the Company if the customer or counterparty to the financial instruments fails to meet its contractual obligations and arises principally from the Company’s receivables, treasury operations and other operations that are in the nature of lease.

Receivables

The Company’s exposure to credit risk is influenced mainly by the individual characteristic of each customer. The Company extends credit to its customers in the normal course of business by considering the factors such as financial reliability of customers. The Company evaluates the concentration of the risk with respect to trade receivables as low, as its customers are located in several jurisdictions and operate in largely independent markets. The Company maintains adequate security deposits from its customers in case of wholesale and retail segment. In case of institutional segment, credit risks are mitigated by way of enforceable securities. The exposures with the Government are generally unsecured but they are considered as good. However, unsecured credits are extended based on creditworthiness of the customers on case to case basis. Besides, the Company also avails factoring facility on non-recourse basis by assigning its rights and privileges to the counterparty.

Trade receivables are written off when there is no reasonable expectation of recovery, such as a debtor declaring bankruptcy or failing to engage in a repayment plan with the company and where there is a probability of default, the company creates a provision based on Expected Credit Loss for trade receivables under simplified approach as below:

Financial Instruments and Cash deposits

Investments of surplus funds are made only with the approved counterparties. The Company is presently exposed to counter party risk relating to short term and medium term deposits placed with banks, and also investments made in mutual funds. The Company places its cash equivalents based on the creditworthiness of the financial institutions.

Liquidity Risk

Liquidity Risks are those risk that the Company will not be able to settle or meet its obligations on time or at reasonable price. In the management of liquidity risk, the Company monitors and maintains a level of cash and cash equivalents deemed adequate by the management to finance the company’s operations and to mitigate the effects of fluctuations in cash flows. Besides, the Company also avail supplier financing facility through reverse factoring arrangements for early payment to suppliers / service providers and the company shall pay such outstanding to the finance providers on the due date along with interest.

Fund Management

Due to the dynamic nature of the underlying business, the Company aims at maintaining flexibility in funding by keeping both committed and uncommitted credit lines available. The Company has laid well defined policies and procedures facilitated by robust information system for timely and qualitative decision making by the management including its day to day operations.

(a) The above table has been drawn up based on the undiscounted contractual maturities of the financial liabilities.

(b) Security deposits do not have a contractual payment term but are repayable on demand. Since, the Company does not have an unconditional right to defer the payment beyond 12 months from reporting date, these deposits have been classified under current financial liabilities. For including these amounts in the above-mentioned maturity analysis, the Company has assumed that these deposits will be repayable at the end of the next reporting period. The actual maturity period for the deposit amount can differ based on the date on which these deposits are settled to the customers.

Market Risk

Interest rate risk

Interest rate risk arises from long term borrowings with variable rates which exposed the company to cash flow interest rate risk. The Company’s fixed rate borrowing are carried at amortized cost and therefore are not subject to interest rate risk as defined in Ind AS 107 since neither the carrying amount nor the future cash flows will fluctuate because of the change in market interest rates. The Company is exposed to the evolution of interest rates and credit markets for its future refinancing, which may result in a lower or higher cost of financing, which is mainly addressed through the management of the fixed/floating ratio of financial liabilities. The Company constantly monitors credit markets to strategize a well-balanced maturity profile in order to reduce both the risk of refinancing and large fluctuations of its financing cost. The Company believes that it can source funds for both short term and long term at a competitive rate considering its strong fundamentals on its financial position.

Note: The above sensitivity analysis is based on a change in an interest rate by 100 bps while holding all other things (viz. Availment and Repayment of borrowings) as constant during the reporting period.

Foreign Currency Risk

The Company’s exposure in USD and other foreign currency denominated transactions in connection with import of capital goods, spares and fuel, besides exports of finished goods and borrowings in foreign currency, gives rise to exchange rate fluctuation risk. The Company has following policies to mitigate this risk:

Decisions regarding borrowing in Foreign Currency and hedging thereof, (both interest and exchange rate risk) and the quantum of coverage is driven by the necessity to keep the cost comparable. Foreign Currency loans, imports and exports transactions are hedged by way of forward contract after taking into consideration the anticipated Foreign exchange inflows/ outflows, timing of cash flows, tenure of the forward contract and prevailing Foreign exchange market conditions.

Other Price Risk: Commodity price risk

The Company is mainly exposed to the risk arises on account of fluctuations in price of raw materials and fuels viz. coal and pet coke, which are linked to various external factors. Since these are primary costs in cement production, any adverse fluctuation in these prices can lead to significant drop in operating profitability.

To mitigate this risk, the Company closely observe the prices and buy when the prices tend to come down and also taken steps to maintain three to four months inventory to beat the impact of upward cycle of commodity index, usage of other alternate fuels and optimum fuel mix to manage over fuel cost. The Company also enters into long term contracts with suppliers at competitive prices. These processes and procedures are reviewed by the management at regular intervals and measures have been taken to curb it.

58. Disclosures as required under Micro, Small and Medium Enterprises Development Act, 2006:

The categorization of supplier as MSME registered under the Act under the new definition, has been determined based on the information available with the Company as at the reporting date. The Company has also considered suppliers as MSME who possess the erstwhile MSME certificate for the period upto the reporting date, for the purpose of categorization and disclosures. The disclosures as required under Micro, Small, and Medium Enterprises Development Act, 2006:

Note: Out of Unbilled Revenue of Rs.2.51 Crores as at 31-03-2024, a sum of Rs.2.14 Crores remain unbilled to BESCOM for more than 3 years towards windmill units generated and pumped into the grids for want of confirmation from the counterparty.

(g) Undisclosed Income

The Company do not have any transaction which are not recorded in the books of accounts that has been surrendered or disclosed as income in the tax assessments under the Income Tax Act, 1961 during any of the years.

(h) Relationship with Struck off Companies

The Company did not have any transactions 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.

(i) Details of Crypto Currency or Virtual Currency

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

(j) Benami property

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

(k) The Company has neither advanced or loaned or invested, nor received any fund, to or from, any other persons or entities including foreign entities (intermediaries) with the understanding 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 or

ii. provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.

63 Capital Management

For the purpose of the Company’s capital management, capital includes issued equity share capital and all other equity reserves attributable to the equity holders of the Company. The primary objective of the Company’s capital management is to maximize the shareholders’ wealth. The Company manages its capital structure and makes adjustments in the light of changes in economic conditions and the requirements of the financial covenants. The Company monitors capital using a gearing ratio, which is net debt divided by total equity plus net debt.

I n order to achieve this overall objective, the Company’s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. There have been no significant breaches in the financial covenants of any interest-bearing loans/borrowing. The Company is not subjected to any externally imposed capital requirements. There are no significant changes in the objectives, policies or processes for managing capital during the years ended 31-03-2024 and 31-03-2023.

64. Closure of foreign branch in Sri Lanka

The Company has closed the operations of foreign branch in Sri Lanka in view of its un-viability with effect from 27-07-2021. The strike-off application for de-registration of the said branch has been approved by the Registrar of Companies, Colombo vide its communication dated 23-10-2023. Our application for de-activation of taxpayer identification number (TIN) with the Inland Revenue Department is under process. As advised by the Auditors in Sri Lanka, there is no necessity to prepare the audited accounts in respect of the said foreign branch in these circumstances. There is no material impact in the financial statements because of closure of said branch operation.