India Cements Ltd. - Quarterly/Annual Result Disclosures and Notes dated 31 Dec 2024

Notes:

1.The above Financial Results have been reviewed by the Audit Committee and approved by the Board of Directors at the meetings held on 21st January 2025.

2 The Company is primarily engaged in manufacture and marketing of cement and cement related products. Subsidiaries and Associate companies are mainly engaged in the business of Sugar, Power, Financial Services, Trading, Mining and Transportation. The reportable segment is only cement.

3. On 24th December, 2024, UltraTech Cement Ltd (UltraTech) acquired 32.72% of the equity share capital of the Company, in accordance with Regulation 22(2) of the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulation, 2011. Ultratech’s aggregate shareholding in the Company has increased to 55.49%. Consequently, the Company has become a subsidiary of UltraTech w.e.f. 24th December, 2024

4 Certain assets of the Company having an aggregate carrying value of Rs.120.34 Crores were attached by a statutory authority during 2015. The Company has already appealed against the Order of the said attachment and the matter is presently Sub judice. The Auditors have continued to draw an emphasis on this matter in their Report.

5 The Competition Commission of India (CCI) vide its Order dated 31st August, 2016 imposed a penalty of Rs.187.48 Crores on the Company. The Company filed an appeal before COMPAT (Presently NCLAT). The COMPAT in its interim order directed the Company to pay 10% of the penalty amount (Rs 18.75 Crores) before granting stay which was deposited by the Company. NCLAT vide its order dated 25th July, 2018 dismissed the appeal filed by the Company. Against this the Company has filed an appeal in the Supreme Court challenging the NCLAT order and the Supreme Court vide its Order dated 5th October, 2018 admitted the Company’s appeal and directed that the interim order passed by the Tribunal in the matter, will continue. The Auditors have continued to draw an emphasis on this matter in their Report.

6. Exceptional items, during the quarter, include:
a) Impairment of carrying value of certain assets, upon classification as ‘held for sale’, provision for non-moving / obsolete stores and spares on change in estimates, certain onetime claims, true-up, discounts and commitment charges aggregating to Rs.142.69 Crores and provision for doubtful receivables from wholly owned subsidiaries Rs.59.66 Crores.
b) Premium received on exercise of put option on, Zero Coupon Unsecured Non-Convertible Redeemable Debenture issued by wholly owned subsidiary, of Rs.12.09 Crore.

7. The company has decided to sell its shareholding in two subsidiaries, Coromandel Electric Company Limited (CECL) and Coromandel Travels Limited (CTL). As a result, the company has classified these investments as "assets held for sale". In the consolidated statement, the assets and liabilities of CECL and CTL have been similarly classified.

8. During the quarter the company fair valued its Land, Mining lands and other PPE as at 24th Dec2024 and the incremental value in fair valuation amounting to Rs.5397.20 Crores considered as “Other Comprehensive Income” (OCI). Deferred tax liability arising on the same amounting to Rs.486.76 Crores is dealt in OCI.

9. (i) The Statutory Auditors have carried out a limited review of the financial results for the quarter ended 31st December 2024.
(ii) The previous periods figures have been regrouped to confirm to current periods required classification.

For THE INDIA CEMENTS LIMITED
K.C. JHANWAR
DIRECTOR

Mumbai
January 21, 2025