1.1 There were no loans repayable on demand and short term
 deposits/loans and advances from related parties
 
 1.2 There was no default as on 31.03.2012 and 31.03.2011 in repayment
 of loans and interest payments on working capital cash credit loans.
 
 1.3 SECURITY
 
 Cash Credits working capital loans from banks: Secured by hypothication
 of inventory of raw materials,finished goods, stocks in-process and
 book debts and first pari pasu charge on the current assets and second
 charge on fixed assets of the company and also by the personal gurantee
 of the above Directors and shareholders.
 
 1.4 There were no current maturities of Finance Lease Obligations,
 unpaid Dividends,unpaid matured Debentures or deposits and interest
 accrued thereon, Income received in advance and Application money
 received for allotment of securities.
 
 There were no investments in Subsidiaries, Associates, Joint Ventures
 and controlled special purpose Entities and in Preference Shares,
 Bonds,Debentures,Mutual Funds and in Partnership Firms
 
 2.1 Contingent Liabilities not provided in respect of :
 
                                                       RUPEES IN LAKHS
 
 SI.
 No.  PARTICULARS                                  2011-2012   2010-2011
 
 a)   As a signatory to the Memorandum of Cement 
      Allocation and                                    1.00        1.00
      Co-ordinating Organization
 
 b)   Guarantees given by the Bankers/Letters of 
      Credit (Net of                                  314.61       66.80
      margin money paid)
 
 c)   Corporate guarantee given to SIPCOT for 
      the financial                                  2351.62     1683.74 
      assistance availed by M/s.Cheran Cement 
      Limited (estimated liability)
 
                                                     6952.54     7742.77
 
 d)   Corporate guarantee given to SBI, SBH, 
      Bank of India, Syndicate Bank and Indian 
      Overseas Bank for financial assistance
      availed by S.P.Y. Agro Industries Limited
 
 e)   Arrears of dividend on C Cumulative 
      Preference shares held                           35.10       32.40  
      by institutions, being not redeemed and 
      requested for extension of time
 
 f)   Estimated amount of contracts remaining 
      to be executed on                               705.50      765.65 
      capital account (Net of advances)
 
 g)   Claims against the Company not 
      acknowlodged as debts being disputed
      and pending in appeals and not provided 
      for as the Company is hopeful of success 
      in appeals:
 
 i)   CENTRAL EXCISE AND CENVAT CREDIT: 
      CENVAT credits                                  950.51      878.62
      availed and utilized were subsequently 
      disallowed by the Department and demand 
      raised for differential duty and show 
      cause notice for irregular availment of 
      CENVAT credit (July 2006 to November 2007).
 
      The Company has contested in appeals and 
      are pending with the Commssioner of 
      Appeals or CEGAT/or A.P High Court (paid
      under protest Rs. 12.56 lakhs)
 
 ii)  ELECTRICITY MATTERS:
 
      Claim of APSEB for 10% voltage surcharge 
      for the period from September 1983 to
      November 1984 contested. High                    30.64      108.73
      Court granted stay and directed APSEB to 
      dispose off the pending representations 
      made by the company. (Provided during the 
      year Rs. 70.35 lakhs)
 
 iii) INCOME TAX MATTERS
 
      Demand raised by the Assessing Officer 
     (Addl.CIT, Kurnool)                             2601.00     2378.48
      for the Assessment year 2008-09 for 
      payment of capital gains tax on 
      Bengaluru/ Wire Division land under Joint
      Development Agreement and for assessment 
      year 2009-10 MAT liability on book profit 
      under section 115JB of IT Act, which are 
      contested by the company before the
      Commissioner of Income Tax (Appeals), 
      Hyderabad and the appeals are pending 
      and got stay/installments from the
      Commissioner for the balance amount.(Paid 
      under protest Rs. 144.70 lakhs)
 
 iv)  COMMERCIAL TAX MATTERS
 
 a)   Demand raised by the Commercial Tax 
      Department, Tamilnadu in respect of levy          5.56        5.56
      of penalty for the assessment year 1994-95 
      contested in appeal before Appellate 
      Authority and the matter was remanded to 
      assessing authority.
 
 b)   Demand raised by the Asst. Commissioner 
     (CT) Audit,                                         Nil       92.59
      Kurnool for payment of dirfferential 
      tax for the year 2007-08,contested in appeal 
      before the Appellate Dy.Commissioner,
      Kurnool and the Appeal was remanded during 
      the year. The Assessing Officer partly 
      allowed and the amount was paid (Rs.11.57 
      lakhs paid under protest in previous year was 
      adjusted during the year)
 
 c)   During the year Penalties levied by the 
      Commercial Tax                                   58.27         Nil
      Officer, Kurnool for non payment of tax 
      dues before the due date for which 
      installments were granted by the Department.
      The Company has requested the Government 
      for waiver of the penalities.
 
 v)   Penal Interest / Damages on PF Dues The 
      Department                                      277.59      399.69
      has levied penal interest and damages for  
      delay in P.F payments for the period from
      May 1989 to September 2001 and the company
      requested for waiver. (Paid during the year 
      Rs. 122.10 lakhs and previous year Rs.
      28.19 lakhs)
 
 vi)  Penal interest on Royalty Dues During the
      year Department                                 343.72         Nil
      of Mines and Geology has raised demand for
      penal interest up to 31.03.2011 of 
      Rs. 560.52 lakhs on royalty dues for delay in
      payments and the Company has filed Revision 
      Application for waiver of interest before the
      Department and Ministry of Mines, New Delhi. 
     (Part of the interest of Rs. 216.80 lakhs  
      was provided in earlier years)
 
 vii) Suits filed against the Company and the 
      Developers of                                 66625.12    66625.12
      Bengaluru Property, in the Court of City
      Civil Judge, Bengaluru by two prospective 
      buyers (Kare Electronics and Developments
      Private Limited and Pranava Electronics
      Private Limited) for specific performance 
      of agreements to sell the property of 
      Bengaluru land under development agreements
      and for refund of advances paid under the
      agreements to sell with interest, damages 
      and value of undivided right, title, 
      interest in the land entitlement as per 
      the agreements to sell, which were 
      contested by the company and the case was 
      dismissed by the City Civil Court and 
      High Court of Karnataka, Bengaluru and the 
      matter is pending before the Honourable 
      Supreme Court of India.
 
 viii)OTHER MATTERS
 
      Suits filed by the parties against 
      the company and                                 126.34      126.34
      pending in Appeals/Courts
 
 2.2. Under The Micro, Small and Medium Enterprises Development Act,
 2006 and in accordance with the notification issued by the Ministry of
 Corporate Affairs, certain disclosures are required to be made relating
 to Micro and Small Enterprises as defined in the said Act. The company
 is in the process of compiling the relevant information from its
 suppliers about their coverage under the said Act and hence required
 disclosures could not be made.
 
 2.3 Disclosure of discontinued operations of Wire / Engineering
 Division:
 
 The operations of the Wire/ Engineering Division at Bengalur were
 permanently discontinued from October 2005 and the division was closed
 on 31.01.2006. The company has entered into agreements for joint
 development of land with the developers. As per the requirements of
 Revised Schedule VI which is effective from 1st April, 2011, the book
 value Rs.  813.12 lakhs of land property under joint development
 agreements, was shown separately under Current Assets as current
 investment in land property and the amounts received from joint
 developers and advances received from intending buyers were shown
 separately under Non-Current Liabilities as other long term
 liability. There were no revenue income/expenses incurred during the
 year and in previous year.
 
 2.4 Belated charges/overdue interest on delay in payment of statutory
 dues liabilities have not been provided in the absence of demand for
 the same.
 
 2.5 The balances of sundry debtors, sundry creditors, other
 liabilities, advance to suppliers for raw materials and spares, other
 advances including claims and deposits have been shown as appearing in
 the books of account and are subject to reconciliation and
 confirmation.
 
 2.6 Lease payments:
 
 The Company has not taken any assets under non cancelable operating
 lease agreements and hence no future lease payments.
 
 2.7 Segment Reporting
 
 The business activity and geographical operations of the company is in
 one segment of cement product and hence segment reporting is not
 applicable.
 
 2.8 EARNING PER SHARE
 
 Basic and diluted earnings/(Loss) per share (face value of Rs.10/-each)
 calculated in compliance with the provisions of Accounting Standard 20
 for the year ended 31.03.2012 comes to Rs. 5.68 (Previous year (Loss)
 Rs.2.40).
 
 The denominator for basic/diluted EPS is 16018139 Equity Shares of
 Rs.10/- each numerator is profit after tax of Rs.913.28 lakhs for the
 year as per Statement of Profit and Loss (Previous year net loss
 Rs.381.20 lakhs) and as reduced by the preference dividend for the year
 of Rs. 2.70 lakhs on C Cumulative Redeemable Preference Shares,
 which is not provided.
 
 Therefore basic/diluted earning per share =Net Profit of Rs.
 910582016018139 shares=Rs.5.68.
 
 2.9 Figures have been rounded off to the nearest decimal of Lacs as
 required under Revised Schedule VI.
 
 2.10 The Revised Schedule VI has become effective from 1st April, 2011
 for preparation of financial statements for the year 2011 -12. This has
 significantly impacted the disclosure and presentation in financial
 statements. Consequently previous year''s figures have been regrouped
 / reclassified wherever necessary to correspond with the current
 year''s classification / disclosure as required under Revised Schedule
 VI.