Mangalam Cement

1.  Buildings, Plant and Machinery and Railway siding were revalued as
 on 1st January, 1988 by the valuer after considering useful life,
 quotations and R.B.I.  indices, etc. As a result net book value of such
 assets was increased by Rs.2355.16 lacs which was transferred to
 Revaluation Reserve. Depreciation for the year includes Rs.9.19 lacs
 (Previous year Rs.10.02 lacs) being depreciation on the increased
 amount of assets due to revaluation and an equivalent amount has been
 transferred from Revaluation Reserve to the Profit and Loss Account.
 
 2.  CONTINGENT LIABILITIES NOT PROVIDED FOR : (i) Claims against the
 Company not acknowledged as debts: Differential of royalty on
 imestone Rs.180.34 lacs (previous year Rs.180.34 lacs), Disputed 
 envat and other excise claims Rs.1017.53 lacs 
 previous year Rs.655.19 lacs), differential tax on raw
 material (Sales Tax) etc. Rs.9.72 lacs (previous
 year Rs.9.72 lacs), Turnover tax Rs.3.13 lacs (previous year Rs.3.13
 acs), Claims by customers and others Rs.87.79 lacs (previous year
 Rs.40.01 lacs), Income Tax matters Rs.76.26 lacs (previous year
 Rs.76.26 lacs), Differential of CST Rs.545.11 lacs (previous year Nil).
 
 (ii) The Jute Commissioner has issued a show cause notice dated
 14.08.2002 for non use of Jute Packaging Material as stipulated under
 the Jute Packaging Material (Compulsory use in Packing Commodities) Act
 1987, which has been stayed by the Honorable Rajasthan High Court, 
 Jodhpur. Liabilities on this account upto 30.06.1997 are presently not
 quantifiable.
 
 3.  Estimated capital commitments outstanding
 
 Rs.475.78 lacs (previous year Rs.297.41 lacs) against which advance
 paid Rs.115.15 lacs (Previous year Rs.43.82 lacs).
 
 4.  It is not possible to ascertain the quantum of accrual with
 reasonable certainty in respect of insurance, other claims and
 performance guarantees, the same are continued to be accounted on
 settlement basis.
 
 5.  Board of Directors have approved buy back of equity shares pursuant
 to section 77A, 77AA and 77B of the Companies Act, 1956 from open
 market through stock exchange mechanism subject to the maximum limit of
 9.94% of the total paid up equity share capital and free reserve of
 company as on 31.03.2008 i.e.  upto an amount of Rs.2150 lacs (maximum
 offer size) and subject to maximum of 4400000 equity shares (maximum
 offer shares) and minimum of 7,25,000 equity shares (minimum offer
 shares) at the maximum offer price of Rs.75/- per share inclusive 
 within a period of 365 days i.e. till 16th January, 2010.
 
 Accordingly the company has bought back 213560 equity shares at value
 of Rs.114.69 lacs, out of General Reserve which was also extinguished
 and the share capital has been reduced to this extent and total nominal
 value of equity shares purchased Rs.21.36 lacs have been transferred to
 Capital Redemption Reserve.
 
 6.  Maximum amount due at any time during the period from an officer of
 the Company under the head “Loans and Advances” is Rs.0.36 lac
 (Previous year Rs.0.10 lac).
 
 7.  (a) Capital work-in-progress includes advance
 against capital orders, machinery under installation and building and
 other assets under erection.
 
 (b) Addition to Fixed Assets/Capital work-in- progress includes
 following preoperative expenses:
 
 Bank details to avail the ECS facility should furnish the same only if
 there is any change.
 
 The ECS Mandate Proforma can be obtained from the Company’s Share
 Transfer Agents, M/s.MAS Services Ltd. at the address mentioned
 hereinbelow in Note 6.
 
 8.  The company has changed the method of computation of cost for the
 purpose of valuation of stores and spares from FIFO to weighted average
 method w.e.f. 1.10.2008 consequently consumption has been accounted for
 upto 30.09.2008 by FIFO and from 1.10.2008 to 31.3.2009 by weighted
 average method. Such change in the method is not having any material
 effect on valuation of stock, consumption and profit.
 
 9. Pursuant to Accounting Standard –15 (Revised), Defined Benefit
 Plans as per Actuarial Valuation as on 31st March, 2009 and recognised
 in the financial statements in respect of Employee Benefit Schemes:
 
 10.  (a) Other Income includes gain/capital receipt of Rs.1330.82 lacs
 being infrequent and exceptional in nature on discharge of deferred
 sales tax loan of Rs.3174.68 lacs, which was repayable during the
 period July 2013 to April 2015, by paying Rs.1843.86 lacs calculating
 the Net Present Value (NPV) as per the scheme of Government of
 Rajasthan.
 
 (b) No provision for tax has been considered on aforesaid, being
 capital receipt as per expert advise. Had this gain been considered for
 tax the impact on tax provision would have been higher by Rs 452.35
 lacs.
 
 11.  The company is engaged only in cement business and there are no
 separate reportable segments as per Accounting Standard 17.
 
 12.  Related party information
 
 i. relationships:
 
 (a) Key Management Personnel Shri K.C Jain (Managing Director)
 
 (b) Other related parties:
 
 (1) M/s. Kesoram Industries Ltd. (Shri KC Jain being Manager)
 
 Note:
 
 Related party relationship on the basis of the
 requirements of Accounting Standard 18 as in 1(a)
 to (b) above is pointed out by the management and
 relied upon by the Auditors.
 
 13.  Previous year’s figures have been regrouped and rearranged
 wherever necessary.