xii. Provisions and contingent liabilities

i) Provision:

A provision is recorded when the Company has a present or constructive obligation as a result of present
obligation, it is probable that an outflow of resources will be required to settle the obligation and the amount
can be reasonably estimated.

Provisions are measured at the present value of management's best estimate of the expenditure required to settle
the present obligation at the end of the reporting period. The discount rate used to determine the present value
is a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the
liability. The increase in the provision due to the passage of time is recognised as interest expenses.

ii) Contingent liabilities:

Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of
which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not
wholly within the control of the Company or a present obligation that arises from past events where it is either
not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot
be made, is termed as a contingent liability.

xiii. Government Grants

Grants from the government are recognised at their fair value where there is a reasonable assurance that the
grant will be received and the Company will comply with all the conditions attached to it.

Government grants relating to the purchase of property, plant and equipment are included in non-current
liabilities as deferred income and are credited to profit or loss on a straight-line basis over the expected lives
of the related assets and presented under other income.

Grants related to income are recognised in statement of profit or loss by deducting it from the related expense.

xiv. Earnings Per Share

The basic earnings per share is computed by dividing the profit/(loss) for the year attributable to the equity
shareholders by the weighted average number of equity shares outstanding during the year. For the purpose
of calculating diluted earnings per share, profit/(loss) for the year attributable to the equity shareholders and
the weighted average number of the equity shares outstanding during the year are adjusted for the effects of
all dilutive potential equity shares.

xv. Segment reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief
operating decision maker.

xvi. Cash and Cash equivalents

For the purpose of presentation in the statement of cash flows, cash and cash equivalents include cash on
hand, deposits held at call with financial institutions, other short-term, highly liquid investments with original
maturities of three months or less that are readily convertible to known amounts of cash and which are subject
to an insignificant risk of changes in value, and bank overdrafts. Bank overdrafts are shown within borrowings
in current liabilities in the balance sheet.

xvii. Trade receivables

Trade receivables are recognised initially at fair value and subsequently measured at amortised cost using the
effective interest method, less provision for impairment.

xviii. Trade payables

These amounts represent liabilities for goods and services provided to the Company prior to the end of
financial year which are unpaid. The amounts are unsecured and are usually paid as per the agreed terms.
Trade and other payables are presented as current liabilities unless payment is not due within 12 months after
the reporting period. They are recognised initially at their fair value and subsequently measured at amortised
cost using the effective interest method.

xix. Rounding off amounts

All amounts disclosed in the financial statements and notes have been rounded off to the nearest lakh as per
the requirement of Schedule III, unless otherwise stated.

xx. Recent accounting announcements

There is no such notification applicable from April 1,2025.

Nature and purpose of other reserves

(i) Securities premium

Securities premium is used to record the premium on issue of shares. The reserve can be utilised in accordance
with the provisions of the Companies Act, 2013.

(ii) General reserve

This reserve is used to record the transfers made from the retained earnings and was made on account of the
requirements of the Companies Act, 2013 for payment of dividends.

(iii) Retained Earnings

This reserve represents the cumulative profits of the Company and effects of the remeasurement of defined
benefit obligations. This Reserve can be utilised in accordance with the provisions of the Companies Act, 2013.

(ii) Post-employment obligations - gratuity

The Company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972. Employees
who are in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on
retirement/termination is the employees last drawn basic salary per month computed proportionately for 15 days
salary multiplied for the number of years of service. The gratuity plan is a funded plan and the Company makes
contributions to the recognised funds in India.

(vii) Risk exposure

Through its defined benefit plans, The company is exposed to a number of risks, the most significant of which are
detailed below:

Investment risks:

The present value of the defined benefit plan obligation is calculated using a discount rate determined by
reference to Government of India bond rate. If the return on plan asset is lower than this rate, then it will create
a plan deficit.

Interest risks:

A decrease in bond rate will increase the plan liability although this will be partially offset by an increase in the
value of the plans bond holdings.

Longevity risks (Life expectancy):

The present value of the defined benefit plan liability is calculated by reference to the best estimate of the
mortality of plan participants both during and at the end of the employment. An increase in the life expectancy
of the plan participants will increase the plan liability.

Salary risks

The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan
participants. An increase in the salary of the plan participants will increase the plan liability.

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity
instruments, traded bonds and mutual funds that have quoted price. The fair value of all equity instruments (including
bonds) which are traded in the stock exchanges is valued using the closing price as at the reporting period. The mutual
funds are valued using the closing NAV.

Level 2: The fair value of financial instruments that are not traded in an active market (for example, traded bonds,
over-the-counter derivatives) 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. This is the case for unlisted equity securities, contingent consideration and indemnification asset included
in level 3.

There are no transfers between levels 1 and 2 during the year. The company's policy is to recognise transfers into and
transfers out of fair value hierarchy levels as at the end of the reporting period.

The company's risk management is carried out by the treasury team under policies approved by the board of directors.
The treasury identifies, evaluates and hedges financial risks in close co-operation with the company's operating units.
The board provides written principles for overall risk management, as well as policies covering specific areas, such as
foreign exchange risk, interest rate risk, credit risk, use of derivative financial instruments and non-derivative financial
instruments, and investment of excess liquidity.

(A) Credit risk

Credit risk arises from cash and cash equivalents, deposits with banks and credit exposures to customers
including outstanding receivables with dealers and advances given to vendors.

(i) Credit risk management

Credit risk is managed on a wholistic basis. For banks and financial institutions, only high rated banks/institutions
are accepted.

For other financial assets, the Company assesses and manages credit risk based on external credit rating
system. The finance department under the guidance of the board, assess the credit rating system. Credit rating
is performed for each class of financial instruments with different characteristics. The company assigns the
following credit ratings to each class of financial assets based on the assumptions, inputs and factors specific to
the class of financial assets.

VL 1 : High-quality assets, negligible credit risk

VL 2 : Quality assets, low credit risk

VL 3 : Standard assets, moderate credit risk

VL 4 : Substandard assets, relatively high credit risk

VL 5 : Low quality assets, very high credit risk

VL 6 : Doubtful assets, credit-impaired

The company considers the probability of default upon initial recognition of asset and whether there has been a
significant increase in credit risk on an ongoing basis throughout each reporting period. To assess whether there
is a significant increase in credit risk The company compares the risk of a default occurring on the asset as at the
reporting date with the risk of default as at the date of initial recognition. It considers available reasonable and
supportive forwarding-looking information. Especially the following indicators are included -

- Internal credit rating assessment

- External credit rating (as far as available)

- Actual or expected significant adverse changes in business, financial or economic conditions that are expected
to cause a significant change to the borrower's ability to meet its obligations

- Macroeconomic information (such as regulatory changes, market interest rate or growth rates) is incorporated
as part of the internal rating model.

In general, it is presumed that credit risk has significantly increased since initial recognition if the payments are
more than 30 days past due.

A default on a financial asset is when the counterparty fails to make contractual payments within 60 days of when
they fall due. This definition of default is determined by considering the business environment in which entity
operates and other macro-economic factors.

(i) Foreign currency risk

The Company is not exposed to foreign exchange risk arising from foreign currency transactions during the year.
Foreign exchange risk arises from recognised liabilities denominated in a currency that is not the Company's
functional currency (INR).

a) Foreign currency exposure

The Company's exposure to foreign currency risk at the end of the current and previous reporting period is Nil.

(ii) Interest rate risk

The Company's main interest rate risk arises from borrowings with variable rates, which expose the Company to
cash flow interest rate risk.

The Company's fixed rate borrowings are carried at amortised cost. They are therefore 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 a change in market interest rates.

The Company has not taken any interest rate swaps to convert the floating rate borrowings to fixed rate loans. The
Company monitors the movement in the interest rates and uses the prepayment option to repay the borrowings
at the time when the interest rates are unfavorable. The assessment of viability of using the pre-payment option
shall be evaluated by the finance team.

Note - 33 : Capital management
(a) Risk management

For the purpose of capital management, capital includes issued equity capital attributable to the holding company.
The company's objectives when managing capital are to;

• Safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders
and benefits for other stakeholders, and

• Maintain an optimal capital structure to reduce the cost of capital.

In order to maintain or adjust the capital structure, The company may adjust the amount of dividends paid to
shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.

Consistent with others in the industry, The company monitors capital on the basis of the following gearing ratio:

Net debt (total borrowings net of cash and cash equivalents) divided by Total 'equity' (as shown in the balance sheet).

(e) Joint ventures in which the company is a joint venturer

The Company does not have any joint venture.

(f) Key management personnel(KMP) of the reporting company and holding of the reporting company.

Mr. M A M R Muthiah, Managing Director of holding Company

Mr. N. Venkat Raju, Managing Director of Reporting Company

Mr. Subhanaryan Muduli, Company Secretary

Mr. Rajesh Kumar Dhoot, Chief Financial Officer

Mrs. V. Valliammai, Non Executive Director of the Reporting Company

Mrs. S.B Nirmalatha, Non Executive Director of the Reporting Company

Mr. Gopal Perumal, Non Executive Director of the Reporting Company( From 23.06.2023)

Mr. Palani Ramkumar, Non Executive Director of the Reporting Company (From 11.08.2023)

Mr. R.M.Palaniappan, Non Executive Director of the Reporting Company (Till 15.04.2024)

Mr. Umesh Prasad Patnaik, Non Executive Director of the Reporting Company (From 15.05.2024)

Note - 42 :

No funds have been advanced / loaned / invested (from borrowed funds or from share premium or from any other
sources / kind of funds) by the Company to any other person(s) or entity(ies), including foreign entities (Intermediaries),
with the understanding (whether recorded in writing or otherwise) 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
(Ultimate Beneficiaries) or (ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

No funds have been received by the Company from any person(s) or entity(ies), including foreign entities (Funding
Parties), with the understanding (whether recorded in writing or otherwise) that the Company shall (i) 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 (ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

Note - 43 :

The Board of Directors of the Company at its meeting held on January 9, 2024 had considered and approved the draft
Scheme of Amalgamation of Bhavya Cements Private Limited, a Subsidiary Company of the Company into and with
the Company and their respective shareholders and creditors pursuant to Sections 230 to 232 and other applicable
provisions of the Companies Act, 2013 read with rules framed thereunder, subject to the requisite statutory and
regulatory approvals. Further, the Company is actively liasioning with the requisite statutory and regulatory authorities
for obtaining their approval in this regard.

Note - 44 :

The company is using accounting software for maintaining its books of account having the feature of recording audit
trail (edit log) facility and the same has been operated throughout the year for all relevant transactions recorded in the
respective softwares. The feature of recording audit trail (edit log) facility at database level is enabled.

Further, where audit trail (edit log) facility was enabled and operated throughout the year for respective accounting
software, there are no instances of audit trail feature being tampered with.

Additionally, the audit trail in respect of the previous year has been preserved by the company as per the statutory
requirements for record retention.

Note - 46 : Note on "Code on Security, 2020"

The Indian Parliament has approved the Code on Social Security, 2020 which would impact the contributions by the
company towards Provident Fund and Gratuity. The Ministry of Labour and Employment has released draft rules for
the Code on Social Security, 2020 on November 13, 2020, and has invited suggestions from stakeholders which are
under active consideration by the Ministry. The Company will assess the impact and its evaluation once the subject
rules are notified and will give appropriate impact in its financial statements in the period in which, the Code becomes
effective and the related rules to determine the financial impact are published.

The accompanying notes form an integral part of standalone financial statements.

As per our report of even date For and on behalf of the Board

For S C Bose & Co N Venkat Raju V. Valliammai S.B. Nirmalatha

Chartered Accountants Managing Director Director Director

FR No : 004840S | (DIN: 08672963) (DIN: 01197421) (DIN: 03092392)

Place: Hyderabad

Subhash C Bose Bendi j Gopal Perumal Palani Ramkumar Umesh Prasad Patnaik

Partner Director Director Director

Membership No : 029795 ; (DIN: 06630431) (DIN: 09207219) (DIN: 10619857)

Place: Hyderabad Rajesh Kumar Dhoot Subhanarayan Muduli

Date: 23rd May 2025 Chief Financial Officer Company Secretary

! PAN: ADMPD3180B M. No.A41513

Place: Chennai
Date: 23rd May 2025