(n) Accounting for Provisions, Contingent Liabilities and Contingent Assets:

Provisions are recognized, when there is a present legal or constructive obligation as a result of a past event, it is
probable that an outflow of resources will be required to settle the obligation, and when a reliable estimate of the
amount of the obligation can be made. If the effect of the time value of money is material, the provision is
discounted using a pre-tax rate that reflects current market assessments of the time value of money and the risks
specific to the obligation and the unwinding of the discount is recognised as interest expense.

Contingent liabilities are recognized only when there is a possible obligation arising from past events, due to
occurrence or non-occurrence of one or more uncertain future events, not wholly within the control of the
Company, or where any present obligation cannot be measured in terms of future outflow of resources, or where a
reliable estimate of the obligation cannot be made. Obligations are assessed on an ongoing basis and only those
having a largely probable outflow of resources are provided for. Contingent liabilities are not recognized in these
financial statements, but are disclosed in Note to financial statements.

v Contingent assets are not recognized in the financial statements. j

(o) Borrowing Costs:

General and specific borrowing costs directly attributable to the acquisition or construction of qualifying assets that
necessarily takes a substantial period of time to get ready for their intended use or sale, are added to the cost of those
assets, until such time as the assets are substantially ready for their intended use or sale. Borrowing costs consist of
interest and other costs that the company incurs in connection with the borrowing of funds.

Interest income earned on temporary investment of specific borrowings pending their expenditure on qualifying
assets is deducted from the borrowing costs eligible for capitalization. Borrowing costs that are not directly
attributable to a qualifying asset are recognised in the Statement of Profit or Loss using the effective interest method.

(p) Cash and Cash Equivalent (for the purpose of cash flow statements):

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term balances (with an
original maturity of three months or less from the date of acquisition), highly liquid investments that are readily
convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

(q) Cash Flow Statement:

Cash flows are reported using the indirect method, whereby profit/ (loss) before tax is adjusted for the effects of
transactions of no cash nature and any deferrals or accruals of past or future cash receipts or payments. Cash flow for
the year are classified by operating, investing and financing activities.

(r) Earnings Per Share:

Basic earnings per share is computed by dividing the profit / (loss) after tax (including the post-tax effect of
exceptional items, if any) by the weighted average number of equity shares outstanding during the year including
potential equity shares on compulsory convertible debentures. Diluted earnings per share is computed by dividing
the profit / (loss) after tax (including the post-tax effect of exceptional items, if any) as adjusted for dividend, interest
and other charges to expense or income (net of any attributable taxes) relating to the dilutive potential equity shares,
by the weighted average number of equity shares considered for deriving basic earnings per share and the weighted
average number of equity shares which could have been issued on the conversion of all dilutive potential equity
shares.

(s) Financial Instruments:

Financial Assets:

Classification

The Company classifies financial assets as subsequently measured at amortised cost, fair value through other
comprehensive income or fair value through profit or loss on the basis of its business model for managing the
financial assets and the contractual cash flow characteristics of the financial asset.

Initial Recognition and measurement:

All financial assets, in the case of financial assets not recorded at fair value through profit or loss, are recognised
initially at fair value plus transaction costs that are attributable to the acquisition of the financial asset. Purchases or
sales of financial assets that require delivery of assets within a time frame established by regulation or convention in
the market place (regular way trades) are recognised on the trade date, i.e., the date that the Company commits to
purchase or sell the asset.

Debt instruments at amortised cost

A ‘debt instrument’ is measured at the amortised cost if both the following conditions are met:

a) The asset is held within a business model whose objective is to hold assets for collecting contractual cash flows,
and

b) Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and
interest (SPPI) on the principal amount outstanding.

After initial measurement, such financial assets are subsequently measured at amortised cost using the effective
interest rate (EIR) method. Amortised cost is calculated by taking into account any discount or premium and fees or
costs that are an integral part of the EIR. The EIR amortisation is included in finance income in the Statement of
Profit and Loss. The losses arising from impairment are recognised in the Statement of Profit and Loss. This
category generally applies to loans and advances, deposits, trade and other receivables.

Debt instruments included within the fair value through profit and loss (FVTPL) category are measured at fair value
with all changes recognized in the Statement of Profit and Loss.

Equity investments

All equity investments in scope of Ind-AS 109 are measured at fair value. Equity instruments are classified as
FVTOCI. Investment in subsidiaries, joint ventures and associates are carried at cost less impairment, if any.

Derecognition

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is
primarily derecognised (i.e. removed from the Company’s balance sheet) when:

- The rights to receive cash flows from the asset have expired, or

- The Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay
the received cash flows in full without material delay to a third party under a ‘pass-through’ arrangement; and either:

(a) the Company has transferred substantially all the risks and rewards of the asset, or

(b) the Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has
transferred control of the asset.

When the Company has transferred its rights to receive cash flows from an asset or has entered into a pass-through
arrangement, it evaluates if and to what extent it has retained the risks and rewards of ownership. When it has
neither transferred nor retained substantially all of the risks and rewards of the asset, nor transferred control of the
asset, the Company continues to recognise the transferred asset to the extent of the Company’s continuing
involvement. In that case, the Company also recognises an associated liability. The transferred asset and the
associated liability are measured on a basis that reflects the rights and obligations that the Company has retained.

Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the
original carrying amount of the asset and the maximum amount of consideration that the Company could be
required to repay.

Impairment of financial assets

In accordance with Ind-AS 109, the Company applies Expected Credit Loss (ECL) model for measurement and
recognition of impairment loss on the following financial assets and credit risk exposure:

a) Financial assets that are debt instruments, and are measured at amortised cost e.g., loans, debt securities,
deposits, and bank balance.

b) Trade receivables.

c) Financial guarantee contracts which are not measured at FVTPL.

The Company follows ‘simplified approach’ for recognition of impairment loss allowance on trade receivables
which do not contain a significant financing component.

The application of simplified approach does not require the Company to track changes in credit risk. Rather, it
recognises impairment loss allowance based on lifetime ECLs at each Balance Sheet date, right from its initial
recognition.

Financial Liabilities

Classification

The Company classifies all financial liabilities as subsequently measured at amortised cost, except for financial
liabilities at fair value through profit or loss. Such liabilities, including derivatives that are liabilities, shall be
subsequently measured at fair value

Initial recognition and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans
and borrowings, payables, or as derivatives designated as hedging instruments in an effective hedge, as appropriate.

All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net
of directly attributable transaction costs.

The Company’s financial liabilities include trade and other payables, loans and borrowings including bank
overdrafts, financial guarantee contracts and derivative financial instruments.

Loans and borrowings

After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using
the EIR method. Gains and losses are recognised in the Statement of Profit and Loss when the liabilities are
derecognised.

Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that
are an integral part of the EIR. The EIR amortisation is included as finance costs in the Statement of Profit and
Loss.

This category generally applies to interest-bearing loans and borrowings.

Derecognition

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires.
When an existing financial liability is replaced by another from the same lender on substantially different terms, or
the terms of an existing liability are substantially modified, such an exchange or modification is treated as the
derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying
amounts is recognised in the Statement of Profit and Loss.

Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if there is a
currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to
realise the assets and settle the liabilities simultaneously.

Equity instruments

An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of
its liabilities. Equity instruments issued by the Company are recognized at the proceeds received, net of direct issue
costs.

(t) Corporate Social Responsibility:

The Company charges its CSR expenditure during the year to the statement of profit and loss.

35. The Company has been incurring continuous losses since the financial year 2022-23, and its
net worth lias been fully eroded as at 31st March 2025. To support its operations and meet
funding requirements, the Company by the approval of shareholders through EGM has
borrowed Rs.1,927.71 lakhs from its group companies during the current financial year (Refer
Note 16).

In August 2024, the Company temporarily suspended its manufacturing operations due to
adverse market conditions and a significant increase in production costs. Management is
currently evaluating various strategic and operational measures, including enhancing
production capacity and reducing operating costs, with the assistance of external consultants.
The Company is also closely monitoring market developments and intends to resume
operations once conditions are favourable.

The suspension of operations is considered temporary in nature. Furthermore, the group
companies have extended their continued financial support for future operational and capital
expenditure needs.

In view of the above and based on the ongoing support from group companies, the financial
statements have been prepared on a "going concern" basis.

36. Contingent Liabilities

Guarantees: Outstanding Guarantees furnished by banks on behalf of the company is
283.56Lakhs. (PY. 286.56Lakhs)

37. There is no foreign exchange earnings and expenditure during the year.

38. Information in respect of Micro, Small and Medium Enterprises

Amount remaining unpaid to any supplier:

a) Principal Amount - 19.23 Lakhs (PY 28.21 Lakhs)

b) Interest provided/due thereon - Nil (PY Nil)

The Company has not received any intimation from majority of suppliers regarding their
status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence
disclosures, if any, relating to amounts unpaid as at the yearend together with interest paid
/ payable as required under the Act have not been given.

Financial risk management

The Comp any's activities expose to limited financial risks: market risk, credit risk and
liquidity risk. The Company's primary focus is to foresee the unpredictability of financial
markets and seek to minimize potential adverse effects on its financial performance.

Market Risk

Market risk is the risk of loss of future earnings or fair values or future cash flows that may
result from a change in the price of a financial instrument.

The company is exposed to market risk primarily related to foreign exchange rate risk
(currency risk), Interest rate risk and the market value of its investments.

Credit Risk

Credit risk refers to the risk of default on its obligation by the counterparty resulting in a
financial loss. It principally arises from the Company's Trade Receivables, Advances and
deposit(s) made

Trade receivables:

The company has outstanding trade receivables amounting to Rs.375.76Lakhs and
Rs.1096.22Lakhs as of March 31,2025 and March 31,2024 respectively. Trade receivables are
typically unsecured are derived from revenue earned from customers. Company's exposure
to credit risk is influenced mainly by the individual characteristics of each customer. The
company is not exposed to concentration of credit risk to any one single customer. Default
on account of Trade Receivables happens when the counterparty fails to make contractual
payment when they fall due.

Further for amounts overdue are constantly monitored by the management and provision
towards expected credit loss are made in the books. Management estimated of expected
credit loss for the Trade Receivables are provided below with the classification on debtors.

Liquidity Risk

Our liquidity needs are monitored on the basis of monthly and yearly projections. The
company's principal sources of liquidity are cash and cash equivalents, cash generated from
operations and Short term facilities from banks and long term loans from group companies.

The company manages liquidity needs by continuously monitoring cash inflows and by
maintaining adequate cash and cash equivalents. Net cash requirements are compared to
available cash in order to determine any shortfalls.

Short term liquidity requirements consist mainly of sundry creditors, expense payable,
employee dues, advances received from customers during the normal course of business as
of each reporting date. We maintain a sufficient balance in cash and cash equivalents to
meet our short-term liquidity requirements.

Interest Rate Risk

The company has a limited exposure to Interest rate risk, as it does not have any variable
interest rate exposure.

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 benefits for
other stakeholders and to maintain an optimal capital structure. 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 or by adequate
funding by the shareholders to absorb the losses of the Company. The Company's capital
comprises equity share capital, retained earnings and other equity attributable to equity
holders. The primary objective of Company's capital management is to maximize
shareholders value. The Company manages its capital and makes adjustment to it in light of
the changes in economic and market conditions.

40. Disclosure in respect of Indian Accounting Standard (Ind AS)-19 "Employee Benefits"

i) General description of various defined employee's benefits schemes are as under:

a. Provident Fund:

The company's Provident Fund is managed by EPFO. The company pays fixed
contribution to provident fund at pre-determined rate.

b. Gratuity:

Gratuity is a defined benefit plan, provided in respect of past services based on the
actuarial valuation carried out by LIC of India and corresponding contribution to
the fund is expensed in the year of such contribution.

The scheme is funded by the company and the liability is recognized on the basis of
contribution payable to the insurer, i.e., the Life Insurance Corporation of India,

however, the disclosure of information as required under Ind AS-19 have been
made in accordance with the actuarial valuation.

ii) The summarized position of various defined benefits recognized in the Statement
of Profit &Loss, Other Comprehensive Income (OCI) and Balance Sheet & other
disclosures are as under:

43. Operating Segments

The Company is engaged in the production and sale of "Cement" and therefore, has only one
reportable segment in accordance with Ind AS 108 'Operating Segments'.

Information relating to geographical areas

The company's operations is restricted to India and the whole of company's revenue is received
from sales within India. The company's only manufacturing facility is located in Andhra
Pradesh, India and no non -current assets are held outside India.

44. Details relating to Title deeds of Immovable Property not held in name of the Company- Nil

45. The company has not revalued its property, plant and equipment during the year.

46. The company has not revalued its intangible assets during the year.

47. Details relating to loans or advances in the nature of loans to Promoters, Directors, KMP and
related parties- Nil

48. Aging schedule of Capital work-in-progress - Refer Note no.4

49. Details relating to ageing of Intangible assets under development- Nil

50. Details relating to Benami Property held by the Company- Nil

51. Details relating to declaration of the company as wilful defaulter by any bank or financial
institution or other lender- Nil

52. Details relating to the nature of transaction carried out with the struck- off company- Nil

53. Details regarding registration or satisfaction of charges with Registrar of Companies,
beyond the statutory period - Nil

54. Details regarding compliance with number of layers of companies - Nil

55. Details regarding compliance with approved scheme of arrangements- Nil

56. 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.

57. Share application money pending allotment - Nil

58. Details relating to the undisclosed income reported- Nil

59. Under section 135 of the Companies Act, 2013 the company is required to spend Nil/-(P.Y
Nil) during the year under review towards Corporate Social Responsibility (CSR) activities as
framed by the company in its Corporate Social responsibility program.

60. Details relating to the transactions under taken in Crypto or Virtual currency- Nil

61. There is no Material difference between the stock and book debts statements submitted to
the bank and books of accounts.

62 The company has not declared any dividend during the year.

63. Ratios are attached.

64. Previous year's figures have been regrouped and reclassified wherever necessary.

As per our report of even date

For S B S B AND ASSOCIATES For and on behalf of the Board

Chartered Accountants
(Firm Regn. No. 012192S)

Ramachandran Harikrishna Dr. Sivasamy Raju

Director Director

D.Sharath Kumar DIN: 07131420 DIN:06961330

Partner
M.No: 024568

UDIN: 25024568BMOSYL9928

Place: Chennai Sujay Sambamoorthy K.Suryanarayanan Krish Narayanan

Date: 03.05.2025 Chief Executive Officer Chief Financial Officer Company Secretory