1 The Company is in process of obtaining mining rights. The Company has secured the mining rights through e-auction. The Environmental Clearance (EC) has been granted as of 18 April 2025. Company had applied for non-agriculture (NA) status for company-owned land spanning 22 hectares. It is anticipating that the completion of the NA process will occur by June 2026. As per the terms and conditions outlined in the Letter of Intent (LOI) for the mining lease, the management is expecting to register the lease deed by September 2026.
2 Borrowing costs are capitalised in case of qualifying assets in accordance with Ind AS 23 ' Borrowing Costs. Interest on Term Loan is 8.65% p.a. amount of ' 565.19 lakhs (31 March 2025: ' 555.40) was capitalised during the year pertaining to interest & other borrowing cost.
3 Directly attributable costs on the project, other than borrowing cost, capitalised during the year ended 31 March 2026 amounted to ' 608.29 Lakhs (31 March 2025 : ' 336.15 Lakhs)
4 Captive consumption of cement for capital work in progress capitalised during the year ended 31 March 2026 amounted to ' 34.22 Lakhs (31 March 2025 : ' 220.15 Lakhs).
5 Provision for Corporate Enviornment Responsibilities(CER) capitalized during the year ended 31 March 2026 amounted to ' NIL. (31 March 2025 : ' 847.33 lakhs)
6 Properties with a carrying amount during the year ended 31 March 2026 amounted to ' 32,985.14 Lakhs (31 March 2025 : ' 19,315 Lakhs) are subject to first charge to secure bank loans (See Note 18 & 21)
7 The carrying amount of Leasehold Land (in respect of which the Company pays nominal ground rent) at Sikka, Gujarat is Nil. The lease period expires on November 20, 2044 and the Company has an option to renew the same for further period of 99 years.
4(D) INTANGIBLE ASSETS UNDER DEVELOPMENT
The Company has acquired mineral rights of three mines i.e. Debhar-Bhavneshwar, Mokhana and Pachhtardi having total expected Limestone Reserve of 27.49 million tons. Out of which, company has got the clearance for Pachhtardi mine. The value of the same mine has been moved to Intangible assets under Mining right (land). However, Company is yet to obtain environment clearance on remaining mines from Ministry of Environment & Forest, Climate Change. These mines are outside the Eco-Sensitive Zone but Debhar-Bhavneshwar and Mokhana mines major portion fall within 1km restrictions of Barda Wildlife Sanctuary. Company has made various representation to Ministry of Environment and Forest and State Government. Management is confident of getting positive response from the respective authorities and will be able to get the requisite clearance. This matter is an industry wide issue.
b) Rights, preferences and restrictions attached to equity shares
The Company has one class of equity shares having a par value of ' 10 per share. Each shareholder is eligible for one vote per share held. In the event of liquidation the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amount, in proportion to their shareholding. The Dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting except in the case of interim dividend.
c) 265,212 equity shares (March 31, 2025: 265,212) are kept in abeyance out of the Rights Issue entitlement pending settlement of disputes.
d) 3,035 equity shares (March 31, 2025: 3,035) were issued in past but remain unsubscribed.
g) There are no shares bought back or allotted either as fully paid up by way of bonus shares or allotted under any contract without payment received in cash during 5 years immediately preceding March 31,2026.
h) During the year ended March 31, 2026, the Company has allotted 55,000 (March 31, 2025 : 4,07,500) equity shares of ' 10/- each to the option grantees upon exercise of Option under the Company's Employees Stock Option Scheme - 2019. Pursuant to this allotment, the paid up equity share capital of the Company has increased from 14,78,14,278 equity shares of ' 10/- each to 14,78,69,278 equity shares of ' 10/- each.
1) Capital Reserve : The Company had issued 6% non-cumulative compulsorily convertible preference shares to its then parent company. Subsequently, the preference shareholders relinquished their right and resultant gain was recorded in the capital reserve in the year of 2010. It also include subsidies received from State Government in the year 2002-03.
2) Capital Redemption Reserve : This was created on redemption of 14% redeemable cumulative preference shares in year 1996-97.
3) Securities Premium : Securities premium is used to record the excess of the amount received over the face value of the shares. This can be utilised in accordance with the provision of the Companies Act, 2013.
4) Shares Options Outstanding : The Company has share option schemes under which options to subscribe for the Company's shares have been granted to specific employees. The share-based payment reserve is used to recognise the value of equity-settled share-based payments provided to certain class of employee as part of their remuneration. Refer to Note 46 for further details of these plans.
5) General Reserve : The Company has transferred a portion of the net profit of the Company before declaring dividend to general reserve. However, mandatory transfer to general reserve is not required under the Companies Act, 2013.
6) Statement of profit and loss represent surplus/accumulated earnings of the Company and are available for distribution to shareholders.
7) Dividend :
The following dividend were declared and paid by the Company.
Note : Term loans have been availed during the year under a consortium arrangement with ICICI Bank and Axis Bank.
The existing term loan from ICICI Bank for the Grinding Unit has been refinanced and replaced with fresh term loans of ' 6,606.67 lakhs each from ICICI Bank and Axis Bank (total ' 13,213.33 lakhs). These loans carry interest at rates ranging from 8.70% to 8.90% p.a. (average 8.80%) (31 March 2025 8.5%) and are repayable in 51 structured monthly instalments commencing from 31 March 2026 up to 31 May 2030.
Further, term loans of '17,800.00 Lakhs each have been sanctioned by ICICI Bank and Axis Bank (total ' 35,600.00 lakhs) for financing acquisition of distribution rights for Hi-Bond cements. These loans carry interest at rates ranging from 8.70% to 8.90% p.a. (average 8.80%) and are repayable in 28 structured quarterly instalments commencing from 30 June 2027 up to 17 March 2034.
The above borrowings are secured by first pari-passu charge by way of hypothecation on all movable assets (present and future), including plant and machinery, equipment and other movable assets, along with charge on intangible assets, goodwill, uncalled capital and rights under security deposits, as per the terms of the respective sanction agreements.
The amounts disclosed under borrowings are net of transaction costs.
a) A sum of ' 767.84 lakhs (March 31, 2025: ' 767.84 lakhs) on account of arrears, rent, service charges, way leave fees of certain leasehold property, consequent to the Order of the Estate Officer of Mumbai Port Trust (MPT) dated February 28, 2007, has not been provided for as the said property was assigned in an earlier year to M/s Dinbandhu Estate Pvt. Ltd. (the Assignee). The assignment was subject to the approval of MPT which was to be arranged by the Assignee. The Company is contesting the said Order before the High Court.
b) In respect of retrospective revision (August 2012 to January 2018) of electricity duty the Company has received a demand of ' 1,472 lakhs from Paschim Gujarat Vij Company Limited. The Company has filed a writ petition with the High Court. Management believes that the probability of the above matter converting into a liability for the Company is remote basis various precedents and applicable laws. As per the direction received from High Court, the Company has deposited ' 500 lakhs as fixed deposit with the High Court in July 2018 which has been disclosed as contingent liability above. Company has recognised contingent liability of ' 49.65 Lakhs (March 31, 2025: ' 49.65 Lakhs) towards other civil matters.
c) It is not practicable for the Company to estimate the timing of cash outflows, if any, in respect of the above pending resolution of the respective proceedings. The Company does not expect any reimbursements in respect of the above contingent liabilities.
d) Competition Commissioner of India ("CCI") had directed the Director General ("DG") to investigate certain allegations of contravention of the provisions of the Competition Act, 2002 against the Company and certain other cement companies. Pursuant to such directions, the DG initiated investigation against the Company and conducted a search and seizure on the Company's premises on 22 December, 2022. During the current year, the Company has received a 'non-confidential and incomplete version' of an investigation report submitted by the Office of the Director General (DG) to the CCI. The matter before the CCI is at a preliminary stage and no contravention has been made out by the CCI against the Company as on date. The Company has not indulged in any activity which is in violation of the Competition Act, 2002 and management does not expect this matter to have any material impact on the standalone financial statements of the Company.
e) The Company had on 06 April 2022 executed the Power Purchase Agreement ("PPA") with CGE Shree Digvijay Cement Green Energy Private Limited ("CGE"), a Special Purpose Vehicle and a subsidiary of Continuum Green Energy Ltd ("Continuum") for supply of a contracted capacity of 8.10 MW hybrid wind and solar power ("Project"). The Company, CGE and Continuum also executed the Share Purchase Share Subscription Agreement ("SPSA") on 6 April 2022. As per the PPA, the Project was scheduled to be fully commissioned from the Scheduled Commencement Date of 06 January 2023. However, due to delay, fundamental breaches and negligence on the part of Continuum, the Project was partly commissioned on 19 June 2023 and fully commissioned only on 24 January 2025.
As per the PPA, CGE and Continuum were obligated to compensate the Company for delayed commissioning, non-supply and short supply of electricity as per PPA. In this regard, as on 31 March 2026, the Company has claimed ' 2,437.60 lakhs by issuing debit notes to CGE in terms of the PPA. Further due to ongoing dispute on payment of compensation by CGE under PPA, the Company has during the year invoked arbitration as per the PPA. Arbitral Tribunal has been constituted and arbitration process has started. The Company has filed its Statement of Claim before the Tribunal. Considering existing dispute arbitration proceedings and the facts, and subject to Arbitral Tribunal decision, it is likely that the order will be in the favour of the Company and accordingly there will not be any material impact on the standalone financial statements of the Company.
f) The amount assessed as contingent liability do not include interest till the reporting date that could be claimed by counter parties.
ii) Capital commitments :
Estimated amount of contracts remaining to be executed on capital account (net of advances) and not provided for is ' 445.41.00 lakhs (March 31,2025: ' 3,884.40 lakhs).
Note: Under Brand Usage, Supply and Distributorship Agreement ("BDA") executed between the Company and Hi-Bond Cement (India) Private Limited ("Hi-Bond") on September 4, 2025 relating to the exclusive long term distribution of cement products manufactured by Hi-Bond, the Company has paid refundable security deposit of ' 40,000 Lakhs to Hi-Bond in terms of BDA. Further the Company has effective from 19 March, 2026 commenced purchase and distribution of cement manufactured by Hi-Bond as per BDA. The BDA stipulates minimum volume commitment requiring the Company to absorb substantially all of Hi-Bond's output at cost plus pre-determined margin.
Pursuant to the Options Agreement ('OA') entered by the Company, Hi-Bond and the selling shareholders of Hi-Bond on September 4, 2025, the Company has been granted by the selling shareholders a call option (to be exercised at the Company's sole and absolute discretion) to purchase all the shares of Hi-Bond held by the selling shareholders at a value to be determined based on the criteria as set out in the OA.
In view of the unconditional call option granted to the Company under the OA, management has evaluated that basis its current expectation of exercising the call option, the BDA qualifies as a short-term lease under Ind AS 116 - Leases. Accordingly, the cost of cement purchased from Hi-Bond during the period from 19 March 2026 until 31 March 2026 has been allocated as lease component (' 25.40 lakhs included in Rent in Note 35 - Other Expenses) and non-lease component (' 1309.73 lakhs disclosed as subcontracting cost of purchased cement).
Based on the evaluation of the terms of BDA and options agreement, management is of view that it does not have any rights or exposure to variable returns or the ability to take / direct material operational or financial decisions of Hi-Bond in a manner to affect the Company's returns and therefore has no 'control' over Hi-Bond as contemplated under Ind AS 110 - Consolidated Financial Statements.
ii) Defined-benefits plans
The Company provides for gratuity, a defined benefit retirement plan covering eligible employees. The Gratuity Plan provides a lump sum payments to vested employees at retirement, death, incapacitation or termination of employment, as per the Company's policy. Vesting occurs on completion of 5 continuous years of service as per Indian law. However, no vesting condition applies in case of death. The gratuity payable to employees is based on the employee's tenure of service and last drawn salary at the time of leaving the services of the Company. The gratuity plan is a funded plan and is administrated through a trust namely Shree Digvijay Cement Co. Ltd. Employee Gratuity Fund.
iii) Risk Exposure
The Gratuity scheme is Defined Benefit Plan that provides for a lump sum payment made on exit either by way of retirement, death, disability or voluntary withdrawal. The benefits are defined on the basis of final salary and the period of service and paid as lump sum at exit. The risks commonly affecting the defined benefit plan are expected to be:
Demographic Risk: This is the risk of variability of results due to unsystematic nature of decrements that include mortality, withdrawal, disability and retirement. The effect of these decrements on the defined benefit obligation is not straight forward and depends upon the combination of salary increase, discount rate and vesting criteria. It is important not to overstate withdrawals because in the financial analysis the retirement benefit of a short career employee typically costs less per year as compared to a long service employee.
Salary Inflation Risk : Higher than expected increases in salary will increase the defined benefit obligation.
Interest-rate risk: The defined benefit obligation calculated uses a discount rate based on government bonds. If bond yields fall, the defined benefit obligation will tend to increase.
iv) Defined Benefit Liability and Employer Contributions
The Company considers that the contribution rates set at the last valuation date are sufficient to eliminate the deficit over the agreed period and that regular contributions, which are based on service costs, will not increase significantly.
The weighted average duration of the defined benefit obligation is 4.43 years (March 31,2025 - 3.15 years). The expected maturity analysis of undiscounted gratuity is as follows:
37D No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities ("Intermediaries") with the understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries). The Company has not received any fund from any party(s) (Funding Party) with the understanding that the Company shall whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
38 FAIR VALUE MEASUREMENTS
Accounting classification and fair values:
Carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy, are presented below. It does not include the fair value information for financial assets and financial liabilities not measured at fair value if the carrying amount is a reasonable approximation of fair value.
(i) Financial instruments by category
There are no financial assets/liabilities that are measured at fair value through statement of profit and loss or other comprehensive income. The following financial assets / liabilities are measured at amortised cost:
(ii) Fair value hierarchy
This section explains the judgements and estimates made in determining the fair values of the financial instruments that are (a) recognised and measured at fair value and (b) measured at amortised cost and for which fair values are disclosed in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial instruments into the three levels prescribed under the accounting standard. An explanation of each level is as follows:-
Level 1 : Level 1 hierarchy includes financial instruments measured using quoted prices.
Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.
Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.
iii) Fair value of financial assets and liabilities measured at amortised cost
The carrying amounts of term deposits and interest there on, trade receivables, cash and cash equivalents, other financial assets, borrowings, trade payables and other current financial liabilities are considered to be the same as their fair values due to their short-term nature.
39 FINANCIAL RISK MANAGEMENT
The Company's activities expose it to a variety of financial risks: credit risk, liquidity risk and market risk. The Company's focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its financial performance. The market risk to the Company is foreign exchange risk and interest rate. The Company's exposure to credit risk is influenced mainly by the individual characteristic of each customer.
39A Credit Risk
Credit risk comprises of direct risk of default, the risk of deterioration of creditworthiness as well as concentration risks. It mainly arises from trade receivables, cash and cash equivalents (excluding cash on hand) and bank deposits.
(i) Credit risk management
a) Trade receivables
The carrying amount of trade receivables represent the maximum credit exposure net of provision for impairment. The maximum exposure to credit risk was ' 3,716.71 lakhs as of March 31, 2026 ( March 31, 2025 - ' 1,795.72 lakhs).
Trade receivables are derived from revenue earned from customers. Credit risk for trade receivable is managed by the Company through credit approvals, establishing credit limits and periodic monitoring of the creditworthiness of its customers to which the Company grants credit terms in the normal course of business. Further, there are customers covered either by security deposits or bank guarantee. The Company's credit period generally ranges from 0-30 days.
As per simplified approach, the Company uses a provision matrix to compute the expected credit loss allowance for trade receivables. The provision matrix takes into account a continuing credit evaluation of Company's customers' financial condition; aging of trade accounts receivable, the extent of credit insurance coverage; the value and adequacy of collateral received from the customers in certain circumstances; the Company's historical loss experience; and changes in credit risk and capital availability of the Company's customers resulting from economic conditions. The Company defines default as an event when there is no reasonable expectation of recovery.
b) Cash and cash equivalent and bank deposits
Credit risk on cash and cash equivalents and bank deposits is generally low as the said deposits have been made with banks having good reputation, good past track record and high quality credit rating and the Company also reviews their credit-worthiness on an on-going basis.
c) Loan to employees and other financial assets
All employee loans are measured at amortised cost and are recovered through monthly salary deductions. Accordingly, management assesses these loans as having low credit risk, as recoveries are secured through payroll, and any outstanding balances are recoverable from full and final settlements in the event of employee resignation or termination. Security deposits with the supplier is having low risk as it is secured through multiple forms of collateral, including first ranking charges over the supplier's fixed and current assets, exclusive mortgages over specified immovable properties, and an exclusive pledge over 100% of the supplier's equity shares. Other receivables includes receivable from supplier on account of contractual breach, management considers these other receivables to be of low credit risk, as the amounts are contractually enforceable and supported by favorable legal opinion.
39B Liquidity Risk
Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities (comprising the undrawn borrowing facilities below), by continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and liabilities.
The Company manages liquidity risk by ensuring the availability of sufficient funds to meet its financial commitments at minimal additional cost. One of the primary tools for monitoring liquidity is the cash flow projection, which is prepared for a minimum period of 12 months from the reporting date.
(i) Financing arrangements
The Company has undrawn borrowing facilities of ' 9,478.36 lakhs as at March 31,2026 (' 4,356.02 lakhs as at March 31, 2025). Undrawn credit facilities comprises of fund based and non-fund based.
Commodity Price Risk
The Company is exposed to the movement of coal prices linked to various external factors. Any increase or decline in the prices of these commodities will have an impact on the profitability of the Company. To manage this risk, the Company take steps such as monitoring of prices, optimising fuel mix and pursue longer and fixed price contracts, where considered necessary. Additionally, processes and policies related to such risks are controlled by central procurement team and reviewed by the senior management.
40 CAPITAL MANAGEMENT
The Company's objectives when managing capital are to safeguard the Company's ability to continue as a going concern in order to provide returns for shareholders and to maintain an optimal capital structure to reduce the cost of capital. In order to maintain or adjust the capital structure of the Company, Management can make, or may propose to the stockholders when their approval is required, adjustments to the amount of dividends paid to stockholders, return capital to stockholders , issue new shares or sell assets to reduce, for example, debt.
The Company considers total equity reported in the standalone financial statements to be managed as part of capital.
Note :
1. Current Ratio during the year has improved due to significant increase in other financial assets and trade receivables, along with reduction in trade payables.
2. Debt-Equity Ratio in current year has increased significantly due to substantial increase in borrowings taken for purchasing Distribution Rights for Hi Bond Cement.
3. Debt Service Coverage Ratio during the year has decreased significantly due to substantial increase in debt and corresponding finance costs, despite marginal improvement in operating profit.
4. Net Profit Ratio during the year has marginally decreased due to proportionately higher increase in expenses compared to growth in revenue, resulting in lower profitability.
5. Return on Equity during the year has marginally decreased due to slight decline in profitability (PAT), despite relatively stable shareholders' funds.
6. Return on capital employed ratio during the year has reduced due to significant increase in capital employed on account of capitalization of Grinding Units Project
7. Net Capital Turnover Ratio during the year has decreased due to significant increase in working capital, which has outpaced the growth in revenue.
48 OTHER STATUTORY DISCLOSURES :
(i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.
(ii) The Company does not have any transactions with companies struck off.
(iii) The Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets or both during the current or previous year.
(iv) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
(v) The Company has not 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
(vi) The Company has borrowings from banks and financial institutions on the basis of security of current assets. The quarterly returns or statements of current assets filed by the Company with banks and financial institutions are in agreement with the books of accounts.
(vii) None of the entities in the Company have been declared wilful defaulter by any bank or financial institution or government or any government authority.
(viii) The Company has complied with the number of layers prescribed under the Companies Act, 2013. (xi) The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous financial year.