India Cements Ltd. - Quarterly/Annual Result Disclosures and Notes dated 31 Mar 2023

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 23rd May 2023 and 24th May 2023 respectively.
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. 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.
4. The Competition Commission of India (CCI) vide its Order dated 31.08.2016 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 25 07-2018 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 5-10-2018 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.
5. Consequent to receipt of relevant final approvals (for change in the name from Trinetra Cement Limited to The India Cements Limited), from Govt of Rajasthan relating to Rajasthan Investment Promotion Scheme (RIPS), the company has,during the Quarter/Year, recognised the balance incentive entitlement of Rs.8.09 Crores pertaining to current and earlier periods.
6. Exceptional Items:
a. During the year the company concluded the sale of investment held in its subsidiary Springway Mining Private Limited (SMPL) for an agreed consideration of Rs.476.88 crores vide Share Purchase Agreement (SPA) on October 10, 2022.The investment represented the company's greenfield expansion initiatives. The Company had so far invested Rs.308.72 crores from time to time till October 7, 2022, including loans and advances to SMPL aggregating to Rs.126.12 crores towards procurement of land. The transaction for sale of investment stated above contemplates that the advances made towards the Purchase of Land amounting to Rs.126.12 crores shall also be returned to the Company. The transaction has since been consummated and the entire consideration has been received except for Rs. 3 crores retained for handing over possession of a small portion of Land. The profit on sale of Investments of Rs 294.28 Crores has been considered in the Standalone financial results for the quarter ended December 31,2022.
b. Company had invested in shares of Andhra Pradesh Gas Power Corporation Ltd (APGPCL), a gas based power generating company, for the purpose of obtaining Low cost power as a captive consumer. During the year under review, the operations of APGPCL were suspended due to various operational reasons. Considering the uncertainties prevailing at APGPCL, the Company impaired the carrying value of investments in APGPCL.The provision for impairment of investments amounting to Rs.113.83 crores has been disclosed as an exceptional item.
7. The company has opted for rates of Income tax as specified under Section 115BAA of The Income Tax Act 1961 for and from AY 22-23 i.e., for the year ended 31st March 2022.Consequent to which, the company's deferred tax has been recomputed during the current financial year.The reversal of deferred tax provision on opting of Income tax under section 115 BAA and deferred tax asset for the losses during the year resulted in credit of tax expense aggregating to Rs 218.36 crores during the current financial year.(Rs 24.46 crores for the Quarter ended 31st March 2023).
8. The figures for the quarter ended 31.03.2023 and 31.03.2022 are the balancing figures between audited figures in respect of the full financial year and year to date figures upto the third quarter of the relevant financial year.
9. i. The Statutory Auditors have carried out the audit of the financial results for the quarter and the year ended 31st March 2023.
ii. The previous periods' figures have been regrouped to conform to Current period's required classification.
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