b. Terms / rights attached to equity shares

(i) The Company has only one class of equity shares having a face value of '10 per share.

(ii) Each holder of equity share is entitled to one vote per share.

(iii) The dividends recommended by the Board of Directors if any, are subject to the approval the shareholders in the ensuing Annual General Meeting.

(iv) In the event of liquidation of the Company, the equity share holders are entitled to receive the remaining assests of the Company after distribution of all preferential claims, in proportion to the number of shares held.

A. All the installments falling due within 12 months from the date of Balance Sheet have been classified as current maturities, the aggregate amounts are shown under ‘short term borrowings’.

B. The term loan Axis Bank is secured by: promoters equivalent to 30% of the equity shares of the company. The said charges and the pledge are on pari passu basis.

(a) First charge on the fixed assets of the Company,

(b) Second Charge on Current Assets of the Company and

(c) Pledge of equity shares of the company held by the promoters equivalent to 30% of the equity shares of the company. The said charges and the pledge are on pari passu basis.

C. The term loan obtained from the bank( other than vehicle loans) are guaranteed by two of the directors of the Company in their individual capacities.

(i) Cash Credit from Axis Bank sanctioned limit of Rs.10.00 crores, is secured by way of hypothecation of work-in-process, finished goods, raw materials, stores and spares, receivables both present and future and also by a second charge on the immovable properties and other fixed assets of the company. Further working capital loans are guaranteed by two of the directors of the Company individually.

(ii) Working capital facility with Axis Bank obtained for cemet Division is secured against all the chargeable current assets of the company including raw materials, stock in progress, finished goods, stores and spares and receivables both present and future,To comply with the provisions of loan arrangments, select information relating to trade receivables,inventories and creditors for purchases are considered relevent. The difference as reported above is mainly attributed to use of information extracted from books prior to book closures. Management has taken necessary steps to mimimise such differences by way of seeking extension for submission of information only after formal book clousures for the relevant periods.

(iii) Bank Overdraft from State Bank of India is secured against pledge of Fixed Deposits and payable on Demand (Refer Note 4)

Details of Security:

(i) Cash Credit from Axis Bank sanctioned limit of Rs.10.00 crores, is secured by way of hypothecation of work-inprocessfiinished goods, raw materials, stores and spares, receivables both present and future and also by a second charge on the immovable properties and other fixed assets of the company. Further working capital loans are guaranteed by two of the directors of the Company individually.

(ii) Working capital facility with Axis Bank obtained for Cement Division is secured against all the chargeable current assets of the Company including raw materials, stock in progress, finished goods, stores and spares and both present and future. To comply with the provisions of loan arrangement, select information relating to trade receivables receivables, inventories, and creditors for purchases are considered relevant. The differences as reported above is mainly attributed to use of information extracted from books prior to book closures. Management has taken necessary steps to minimise such differences by way of seeking extension for submission of information only after formal book closures for the relevant periods.

Disclosure of payable to vendors as defined under the “Micro, Small and Medium Enterprise Development Act, 2006” is based on the information available with the Company regarding the status of registration of such vendors under the said Act, as per the intimation received from them on requests made by the Company. There are no overdue principal amounts / interest payable amounts for delayed payments to such vendors at the Balance Sheet date. There are no delays in payment made to such suppliers during the year or for any earlier years and accordingly there is no interest paid or outstanding interest in this regard in respect of payment made during the year or on balance brought forward from previous year.

The contract liabilities primarily relate to the advance consideration received from the customers.

c) Performance obligation:

All sales are made at a point in time and revenue is recognised upon satisfaction of the performance obligations which is typically upon dispatch/ delivery. The Company does not have any remaining performance obligation for sale of goods or rendering of services which remains unsatisfied as at March 31, 2025 or March 31, 2024.

d) Disaggregation of revenue:

Refer Note 41 for disaggregated revenue information. The management determines that the segment information reported is sufficient to meet the disclosure objective with respect to disaggregation of revenue under Ind AS 115 “Revenue from contract with customers”.

(ii) A.R General Sales Tax liability of Rs. 18.77 lakhs (Upto 31.03.2024 - Rs. 18.77 lakhs) on packing materials purchased during the accounting years 1990-91 and 1991-92 as the Company preferred appeals before Appellate Authorities and the same are pending.

(iii) In the year 2007-08, A.R Commercial Tax Department revised the CST Assessment for the year 2000-2001 and demanded Rs. 39.25 lakhs. The company got stayed the demand through an order from Hon’ble High Court of A.R and the department had collected Rs. 19.09 lakhs around 50% of the demand which is grouped under Other NonCurrent assets. On the Company’s Appeal to the Sales Tax Appellate Tribunal, the Tribunal has set aside the demand and remanded the matter to assessing authorities. No provision is made in the accounts for the disputed tax of Rs. 39.25 lakhs.

(iv) Karnataka Sales Tax demand of Rs. 6.20 lakhs (Upto 31.03.2024 - Rs. 6.20 lakhs,) for the accounting year 1993-94 as the company preferred an appeal in the Hon’ble High Court of Karnataka.

(v) Income Tax Demand - During the year the Company has received demand from Income Tax Department for Rs. 592.13 Lakhs pertaining to AY 2023-24. The Company has filed an appeal against such order before CIT(A). The Company believes that the liabilities with respect to the above matter is not likely to arise and therefore, no provision is considered necessary in the financial statements.

(vi) a) Voltage surcharge: In the year 2003-04, Central Rower Distribution Company of A.R Ltd. had levied Voltage

Surcharge of Rs. 130.29 lakhs for getting the energy through general lines over and above the contracted load instead of dedicated lines. As getting the energy through dedicated line is not within the control of the company, the company challenged the levy before Hon’ble High Court of Andhra Pradesh and the High Court was pleased to pass an order staying the collection of the said levy. However, the Company has paid Rs. 72.06 lakhs (31.03.2024 - Rs. 72.06 lakhs) under protest and shown under Other Noncurrent assets and the said amount was not provided for in the books. The appeal is pending.

b) Fuel Surcharge Adjustment (FSA): FSA for the period from April 2008 to June 2010 amounting to Rs. 248.75 lakhs which were stayed by the Hon’ble High Court of judicature at Hyderabad for the states of Telangana and Andhra Rradesh, were not accounted.

(vii) Commercial tax department, Government of Telangana has issued demand notice for the payment of entry tax Rs.46.89 lakhs pertaining to financial year 2012-13 to 2017-18. The company has filed an appeal before the Appellate Deputy Commissioner (CT), Hyderabad Rural Division, by paying 35% of the disputed tax. As the appeals are dismissed by the Appellate Deputy Commissioner (CT), the Company filed writ petitions before Hon’ble High Court of Telangana and Hon’ble High Court of Telangana has given stay orders.

(viii) Commercial tax department, Government of Telangana has issued a demand notice of Rs. 1445.68 Lakhs towards interest on the delayed repayment of sales tax deferment loan by applying amended Rule 67 of Telangana Value Added Tax Rules. Aggrieved by the order the Company has challenged the demand before Hon’ble High Court of Telangana and the Hon’ble High Court was pleased to pass an order staying the collection of the said levy. Accordingly, no provision is made in these financial statements as of March 31, 2024.

32.2 Capital Commitments

Estimated amount of contracts to be executed on capital account - Rs.89.74 Lakhs (Net of advances).

32.3 The National Savings Certificate VIII issue of Rs.6000/- (shown under non-current investments) has been pledged with Sales Tax Department towards Sales Tax Deposit by Electronics Division.

33. Capital Management

The company’s capital management is intended to create value for shareholders by facilitating the meeting of long-term and short-term goals of the company. The objective of the Company’s capital management policy is also to ensure the availability of funds at competitive cost for its operational and developmental needs and maintain a strong credit rating and healthy capital ratios in order to support its business and maximize shareholder value

The company determines the amount of capital required on the basis of annual operating plans and long-term product and other strategic investment plans. The funding requirements are met through equity and other long-term/short-term borrowings.

The company’s policy is aimed at the combination of short term and long-term borrowings. The company monitors the capital structure on the basis of total debt to equity ratio and maturity profile of the overall debt portfolio of the company.

F. Sensitivity Analysis

The financial results are sensitive to the actuarial assumptions. The changes to the Defined Benefit Obligations for an increase/decrease of 1% from the assumed salary escalation, withdrawal and discount rates are given below:

39. Fair Value Hierarchy of Financial Instruments

The following table provides an analysis of financial instruments that are measured subsequent to initial recognition at fair value, grouped into level 1 to level 3 as described below.

Level 1 - Quoted prices in an active market:

This level of hierarchy includes financial assets that are measured by reference to quoted prices (unadjusted) in active markets for identical assets or liabilities. This category consists of mutual fund investments.

Level 2 - Valuation techniques with observable inputs:

This level of hierarchy includes financial assets and liabilities, measured using inputs other than quoted prices included

within level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from

prices).

Level 3 - Valuation techniques with significant unobservable inputs:

This level of hierarchy includes financial assets and liabilities measured using inputs that are not based on observable

market data (unobservable inputs). Fair values are determined in whole or in part, using a valuation model based on

assumptions that are neither supported by prices from observable current market transactions in the same instrument nor

are they based on available market data.

40. Financial Risk Management Objectives and Policies

The company is exposed to financial risks arising from its operations and the use of financial investments. The key financial risks include interest rate risk, market risk, credit risk and liquidity risk. The company has a risk management policy which not only covers the foreign exchange risks but also risks associated with the financial assets and liabilities such as interest rate risks and credit risks. The risk management framework aims to:

1. Create a stable business planning environment by reducing the impact of currency and interest rate fluctuations on the company’s business plan.

2. Achieve greater predictability to earnings by determining the financial value of the expected earnings in advance.

The following sections provide details regarding the Company’s exposure to the financial risks associated with financial instruments held in the ordinary course of business and the objectives policies and processes for the management of these risks.

(i) Market Risk:

Market risk is the risk that the fair value or future cash flow of a financial instrument will fluctuate because of changes in market prices. Market prices comprise three types of risk, currency rate risk, interest rate risk and other price risks such as equity risk. Financial instruments affected by market risk include investments in mutual funds.

a. Interest Rate Risk

The interest rate risk is the risk that the fair value or future cash flows of the Company and the Company’s financial instruments will fluctuate because of changes in market interest rates. Since the Company has only fixed interest-bearing debts, exposure to interest rate risk is minimal.

b. Foreign Currency Risk

Currency risk is the risk that the value of a financial instrument will fluctuate due to changes in foreign exchange rates. Currency risk arises when transactions are denominated in foreign currencies.

The Company has transactional currency exposures arising from goods supplied or received that are denominated in a currency other than the functional currency. The foreign currencies in which these transactions are denominated are mainly in US Dollars ($). The Company’s trade receivable and trade payable balances at the end of the reporting period have similar exposures.

The following table demonstrates the sensitivity in the USD to the Indian Rupee with all other variables held constant. The impact on the company’s profit before tax due to changes in the fair value of monetary assets and liabilities is given below:

c. Foreign Currency risk

Other price risk is the risk that the fair value or future cash flows of the Company’s financial instruments will fluctuate because of changes in market prices (other than those arising from interest rate risk or currency risk) whether those changes are caused by factors specific to the individual financial instrument or its issuer or by factors affecting all similar financial instruments traded in the market.

The Company is exposed to price risk arising mainly from investments in Mutual Funds recognized at FVTPL. Sensitivity analysis of 1% change in price of security as on reporting date.

(ii) Credit Risk:

Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The credit risk arises from its operating activity primarily from trade receivable and from its financial activity. Customer credit risk is controlled by analysis of credit limit and credit worthiness of the customer on a continuous basis to whom the credit has been granted.

Long outstanding receivable from customers are regularly monitored. The maximum exposure to credit risk at the reporting date is the carrying value of trade and other receivable.

(iii) Liquidity Risk:

The risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash or another financial asset.

The company ensures that it has sufficient cash on demand to meet expected operational demands, including the servicing of financial obligations; this excludes the potential impact of extreme circumstances that cannot reasonably be predicted.

i) During the financial year ended March 31, 2025, there had been a decline in the sales volume and price when compared to the previous financial year, this impacted operating margins and increase in loss, resulting into variations in ratios as reported above.

ii) Decrease in trade payable turnover ratio is due to decrease in Purchases and Expenses on account of lower production.

iii) Debt Service Coverage Ratio has not been computed as Earnings available for debt service are negative for current year.

iv) Due to decrease in income from Investment in mutual funds.

43. Recognition of Government Grant - Power Subsidy: During the year, the Company received an amount of '40.00 lakhs towards reimbursement of power cost for the financial year 2016-17, against a sanctioned amount of '154.21 lakhs. The grant received has been recognized as Other Income in the Statement of Profit and Loss. As the disbursement of the grant is subject to government budgetary allocations and remains uncertain, the Company accounts for such grants when there is a reasonable assurance that the grant will be received and the Company will comply with all attached conditions.

44. Note on Breach of Debt Covenants: During the year, the Company could not comply certain debt covenants specified in the sanction letter. Consequently, Company may be liable to pay an additional interest of '61.77 lakhs. The management is in discussions with the bankers to obtain a waiver of the same. Hence, no provision is made in the books of account.

45. Waiver of Penalty - Fuel Supply Agreement with Singareni Collieries Limited: As per the terms of the agreement, Singareni Collieries Limited (SCL) may claim compensation equivalent to 10% of the value of the shortfall in lifting the minimum contracted quantity of coal. During the year the Company estimated such compensation on account of shortfall to be about '165.00 lakhs. Based on ongoing correspondence, the Company expects a waiver of the same. Hence, no provision has been made in the books of account.

46. Additional information

i) The Company does not have any Benami property and neither have any proceedings been initiated or is pending against the Company for holding any Benami property.

ii) The Company does not have any transactions with companies struck off.

iii) As of March 31, 2025, the register of charges of the Company as available in records of the Ministry of Corporate

Affairs (MCA) includes charges that were created/modified since the inception of the Company. There are certain changes which are historic in nature, and it involves practical challenges in obtaining no-objection certificates (NOCs) from the charge holders of such charges, despite repayment of the underlying loans. The Company is in the continuous process of filing the charge satisfaction e-form with MCA, within the timelines, as and when it

receives NOCs from the respective charge holders.

iv) The Company has not been declared a willful defaulter by any bank or financial institution or any other lender during the current period.

v) 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:

a. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or

b. provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

vi) 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 Company shall:

a. 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

b. provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

vii) The loan has been utilised for the purpose for which it was obtained, and no short-term funds have been used for long-term purposes.

viii) The Company is in compliance with the number of layers prescribed under clause (87) of section 2 of the Companies Act read with the Companies (Restriction on number of Layers) Rules, 2017.

ix) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year

x) The Company does not have any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as search or survey or any other relevant provisions of the Income Tax Act, 1961).

47. Previous Year’s figures have been reclassified, wherever necessary so as to conform with those of Current Year.