| 1. Corporation Information
The company was incorporated on 20th April, 1981 under the provision of
the Companies Act 1956, as a Public Limited Company. The Company
suffered losses and was declared a sick Company in the year 1998 under
the Sick Industrial Companies (Special Provision) Act, 1985. After
prolonged proceedings, the Company was declared a healthy one in the
year 2011 and was discharged from the purview of the BIFR on 27th July
2011.
2. Basis of Preparation
The Financial statements have been prepared in accordance with the
Generally Accepted Accounting principles in India (Indian GAAP) to
comply with the Accounting standards specified under Section 133 of
Companies Act, 2013 read with Rule 7 of the Companies (Accounts)
Rules,2014 and relevant provisions of the Companies Act, 2013. The
financial statements have been prepared under the historical cost
convention on accrual basis.
3. OTHER NOTES FORMING PART OF ACCOUNTS :
1. Contingent Liabilities not provided for
As on As on
Particulars 31.03.2015 31.03.2014
Rs.in Lakhs Rs.in Lakhs
Bank Guarantees 48.14 48.14
Sales Tax Demand under APVAT (2005-06
and 2006-07) paid - 20.26
Penalty for over drawal of Electricity
during Sept 12 - Nov 12 partly waived - 54.71
by A.P.Electricity Regulatory Commission,
now awarded in our favour.
Demand for Income tax for Asst year 2008-09
on re-opening the assessment was appealed
and was awarded in our favour by the
Commissioner, Hyderabad vide ITA No.0212/
DC-2(2)/CIT(A)-2/2014-15 Dt.27.2.15. - 265.86
Hence no provision during 2014-15.
Demand for Income tax for Asst year 2012-13
as per AO dated 31.3.15 is appealed before
the Commissioner of Appeals-2, Hyderabad. 330.88 -
The company is confident of favorable
appeal and hence no liability is provided.
2. Capital commitments not provided for on account of pending
execution (net of advance) - Rs. NIL (Previous Year Rs. NIL).
3. The Company has entered into an agreement with HCL Agro Power
Limited for purchase of 1.5 M.W. of power per hour from 1.7.2013 on a
captive basis and relevant declarations have also been given to
APSPDCL. Payments were made periodically calculating the power
requirements but as their generation did not stabilize, no power was
flown till March 2015. However, the company is confident of recovering
the moneys so far paid.
4. There are no delays in payments to Micro and Small Enterprises as
required to be disclosed under the Micro, Small and Medium Enterprises
Development Act, 2006. The information regarding Micro and Small
enterprises has been determined to the extent such parties have been
identified on the basis of information available with the Company. This
has been relied upon by the Auditors.
5. Excise Duty amounting to Rs. 393,680/- on Closing Stock of finished
Goods has been provided during the year to comply with ' Guidance Note
on Accounting treatment for Excise duty' issued by Institute of
Chartered Accountants of India.
6. Employee Benefits:
In accordance with Accounting Standard 15 "Employees Benefits", the
Company has classified various benefits provided to employees as under:
i. Defined Benefit Plans:
Provision for Gratuity & Leave Encashment has been provided in
accordance with AS-15 (Revised).
a) Disclosure relating to Employee benefits - As per AS 15 (Revised)
For defined benefit plan - Gratuity (Projected Unit Credit Method)
Reconciliation of opening and closing balances of the present value of
the defined benefit obligation
b) Other Employee Benefit Plan
The liability for Leave Encashment as at the year end is Rs.73,23,680
(previous year Rs.76,88,533) and the assumptions are as same as above.
7. Amount of borrowing costs capitalized during the year Rs. Nil.
8. Segmental Information:
Since the company has only one segment, i.e.; Cement Manufacturing,
Separate information on Segment reporting as per the Accounting
Standard 17 "Segment Reporting" issued by the Institute of Chartered
Accountants is not required.
9. Related Party Disclosures:
As required under Accounting Standard 18 "Related party Disclosures",
following are details of transactions during the year with the related
parties of the Company as defined in AS 18:
a) Name of the related parties and description of their relationship:
1. Key Managerial Personnel
Shri. P.RAVI (Chairman)
Shri. K.GOPI PRASAD (Managing Director)
Shri. VIVEK SIVA RAMAN (Director & CEO)
Mr. VELLI PARAMASIVAM (Company Secretary)
2. Director Interested Companies
M/s. HCL Agro Power Ltd
M/s. SRM Transport India Pvt Ltd
M/s SRM Civil Works Pvt Ltd
M/s. SRM Engineering Construction Corporation Ltd
M/s. SRM Global Cements Corporation Ltd
M/s. SRM Infrastructures Ltd
3 Relatives of Key Management Personnel
Shri. T.R.Pachamuthu
10. Under Section 135 of The Companies Act, 2013 the company is
required to spend Rs.13,72,660/- during the year under review towards
Corporate Social Responsibility (CSR). However, the Company has not
spent any amount.
11. The depreciation on various assets, recomputed in accordance with
part "C" of Schedule II of the Companies Act, 2013. Hence, the
transitional effect on account of such re-computation, to the extent of
Rs. 18,89,356/- has been adjusted against the opening General Reserve
as on 1st April 2014. Refer Note No. 9 - Fixed Assets.
12. Sundry debtors, creditors and loans and advances are subject to
confirmation.
13. Previous year's figures have been regrouped wherever necessary to
confirm to the current year's classification.
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