Sagar Cements Limited: SCL:SEC:NSE:BSE:2018-19

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) SAGAR CEMENTS LIMITED
SCL:SEC:NSE:BSE:2018-19 I 0th October 2018
The National Stock Exchange of India Ltd., The Secretary

"Exchange Plaza", 5 th Floor Bombay Stock Exchange Limited
Sandra - Kurla Complex P J Towers
Sandra (East) Dalal Street
Mumbai - 400 051 Mumbai - 400 001
Symbol: SAGCEM ocl':502090

Series: EO
Dear Sirs
Sub: Fi ling of annual accounts for the year ended 31 st March, 20 I 8 - under Regulation 34
(I) of the SEBI (LODR) Regulations 2015
We refer to our letter dated 3•d September, 2018 forwarding soft copy of our Annual Report
containing, inter-alia, the audited Annual Accounts for the year ended 3 I st March, 2018,
Director's Report, Auditor's Report and Notice of the Annual General Meeting (AGM).
We wish to inform you that the audited annual accounts as contained in the above said report
were later adopted by our shareholders at their 37 th Annual General Meeting held on 27th
September, 2018.
In compliance with Regulation 34 (1) of the SEBI (Listing Obligations and Disclosure
Requirements) Regulation 2015, we now forward herewith the Annual Report as adopted at the
above said AGM.
Thanking you
Yours faithfully
For Sag·ir Cements Limited
Encl.
MGUI SYS
RYA C 218
Registered Office : Plot No. 111, Road No. I 0,Jubilee HIiis, Hyderabad - 500 033
Phone : +91-40-23351571, 23356572 Fax: +91-40-23356573 lnfo@sagarcements.in www.sagarcements.in
CIN : L26942TG 1981PLC002887
INDEX
Corporate Details 2
Notice 3
Directors' Report with Annexures 11
Corporate Governance Report 36
Independent Auditors’ Report 50
Balance Sheet 55
Statement of Profit & Loss 56
Cash Flow Statement 58
Notes to the Financial Statements 60
Independent Auditors' Report on Consolidated Financial Statements 92
Consolidated Balance Sheet 96
Consolidated Statement of Profit & Loss 97
Consolidated Cash Flow Statement 99
Notes on Consolidated Financial Statements 101
Attendance Slip and Proxy Form 135
Route Map 137
Sagar Cements Limited - Annual Report 2017-18 1

CORPORATE DETAILS (AS ON 19TH JULY, 2018)
BOARD OF DIRECTORS
Shri O.Swaminatha Reddy Chairman – Independent
Shri S.Veera Reddy Managing Director
Dr.S.Anand Reddy Joint Managing Director
Shri S.Sreekanth Reddy Executive Director
Mrs.S.Rachana Non Executive Director
Shri K.Thanu Pillai Independent
Shri V.H.Ramakrishnan Independent
Shri John-Eric Fernand Pascal Cesar Bertrand Non Executive
Shri T.Nagesh Reddy APIDC Nominee
Shri Jens Van Nieuwenborgh Alternate Director to Shri John-Eric Fernand Pascal
Cesar Bertrand (From 29.05.2017 to 22.09.2017)
COMPANY SECRETARY Shri R.Soundararajan
CHIEF FINANCIAL OFFICER Shri K.Prasad
SENIOR MANAGEMENT TEAM
Corporate Office:
Shri M.S.A.Narayana Rao Group President
Shri K.Ganesh President (Projects)
Shri P.S.Prasad President (Marketing)
Shri O.Anji Reddy Sr.Vice President (Electrical & Instrumentation)
Shri K.V.Ramana Sr.Vice President (Mines)
Shri D.S.N.V.Prasad Sr.Vice President (Works)
Shri M.V.Ramana Murthy Sr.Asst.Vice President (Production & QC)
AUDITORS
Deloitte Haskins & Sells
Chartered Accountants (FR No.008072S)
KRB Towers, Plot No.1 to 4 & 4A, 2nd & 3rd Floor,
Jubilee Enclave, Madhapur, Hyderabad-500 081
COST AUDITORS
M/s.Narasimha Murthy & Co.,
Cost Accountants (FR No.000042)
104, Pavani Estates, Y.V.Rao Mansion,
Himayathnagar, Hyderabad – 500 029
BANKERS
State Bank of India Yes Bank Limited IDBI Bank Limited
REGISTERED OFFICE
Plot No.111, Road No.10, Jubilee Hills
Hyderabad-500 033. Tel: 040 – 23351571, Fax: 040 - 23356573
website: www.sagarcements.in, e-mail: info@sagarcements.in
CORPORATE IDENTITY NUMBER
L26942TG1981PLC002887
PLANTS
Cement Plants: Hydel Power Units:
1. Mattampally, Via Huzurnagar, 1. Guntur Branch Canal Hydel Project
Nalgonda District, Telangana - 508 204 Tsallagundla Adda Road, Nekarikallu Mandal
Tel: 08683 – 247039 Guntur District, Andhra Pradesh – 522 615
2. Bayyavaram Village, Kasimkota Mandal, 2. Lock-in-Sula- Hydel Project
Visakhapatnam District, Andhra Pradesh - 531031. Banumukkala Village, Banakacherla Regulator
Tel: 08924 – 244098 / 244550 Pamulapadu Mandal, Kurnool District, A.P.- 518 422
2 Sagar Cements Limited - Annual Report 2017-18

NOTICE
SAGAR CEMENTS LIMITED

(CIN : L26942TG1981PLC002887)
Notice is hereby given that the 37th Annual General Meeting of the Members of Sagar Cements Limited will be held on
Thursday the 27th September, 2018 at 4.00 p.m. at Hotel Golkonda, Masab Tank, Hyderabad – 500 028, to transact the
following business:
ORDINARY BUSINESS
1. To receive, consider and adopt the audited stand-alone and consolidated Financial Statements of the Company for
the financial year ended 31st March, 2018 together with the Reports of the Directors and Auditors thereon and in this
regard to pass the following resolution as an Ordinary Resolution.
“Resolved that the audited stand-alone Financial Statements of the Company for the year ended 31 st March, 2018
together with the reports of the auditors and directors thereon and the audited Consolidated Financial Statements of
the Company for the year ended 31st March, 2018 together with the report of the auditors thereon be and are hereby
received, considered, approved and adopted.
2. To confirm the interim dividend already paid on the equity shares of the company and to declare a further dividend
on the said shares for the financial year ended 31st March, 2018 and in this regard to pass the following resolutions
as an Ordinary Resolutions.
“Resolved that the interim dividend of ` 2.50 per share (25%) on the 2,04,00,000 equity shares of ` 10/- each of the
company already paid to the shareholders for the year ended 31st March, 2018 be and is hereby confirmed.
“Resolved Further that a further dividend of ` 1.50 per share (15%) on the said 2,04,00,000 equity shares be and is
hereby declared for the year ended 31st March 2018.”
3. To re-appoint the retiring director, Dr.S.Anand Reddy (DIN: 00123870), who retires by rotation and being eligible,
offers himself for re-appointment and in this regard to pass the following resolution as an Ordinary Resolution.
“Resolved that Dr.S.Anand Reddy (DIN: 00123870) who retires by rotation in accordance with Section 152 of the
Companies, Act, 2013 be and is hereby re-appointed as a director liable to retire by rotation.”
4. To re-appoint the retiring director, Shri John-Eric Fernand Pascal Cesar Bertrand (DIN: 06391176), who retires by
rotation and being eligible, offers himself for re-appointment and in this regard to pass the following resolution as an
Ordinary Resolution.
“Resolved that Shri John-Eric Fernand Pascal Cesar Bertrand (DIN: 06391176) who retires by rotation in accordance
with Section 152 of the Companies Act, 2013 be and is hereby re-appointed as a director liable to retire by rotation.”
SPECIAL BUSINESS
5. Amendment to the Memorandum of Association of the Company.
To consider and, if thought fit, to pass the following resolution as a Special Resolution:
“Resolved that pursuant to the provisions of Section 4, 13 and all other applicable sections and provisions, if any, of
the Companies Act, 2013 (the “Act”) read with applicable Rules and Regulations made thereunder (including any
modification(s) or reenactment(s) thereof for the time being in force) and subject to such approvals, permissions and
sanctions of Registrar of Companies, appropriate authorities, departments or bodies as may be and to the extent
necessary, consent of the members of the Company be and is hereby accorded for effecting the alterations in the
Memorandum of Association of the Company by inserting the following sub-clause after its existing sub-clause 7 of
Clause III (A):
“8. To promote, own, run, install, takeover, set up power plants of any kind as may be permitted by law and to
generate, co-generate, transmit, buy and distribute electric power for captive consumption, accumulation, sale
and re-sale.”

6. Ratification of remuneration payable to the Cost Auditors.
To consider and, if thought fit, to pass the following resolution as an Ordinary Resolution:
“Resolved that pursuant to Section 148(3) and other applicable provisions of the Companies Act, 2013 read with
Rule 14 of the Companies (Audit and Auditors Rules), 2014 (including any statutory modification(s) or re-enactment
thereof, for the time being in force), the Company hereby ratifies the approval of payment of remuneration of `
3,25,000/- plus reimbursement of actual travel and out of pocket expenses and applicable taxes to M/s.Narasimha
Murthy & Co., Cost Accountants, Hyderabad, the Cost Auditors (Firm Registration No.000042), to conduct the audit
of the cost records of the company for the financial year ending March 31, 2019.”
By Order of the Board of Directors
R.Soundararajan
19th July, 2018 Company Secretary
Registered Office:
Plot No.111, Road No.10
Jubilee Hills, Hyderabad – 500 033, Telangana.
Notes:
1. The Statement setting out material facts concerning the business under Items No.5 and 6 in the Notice is given in the
Annexure-1, which forms part of this Notice.
2. The details that are required to be given under Regulation 36(3) of SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015 in respect of the persons seeking re-appointment as directors, are given in the
Annexure-2.
3. A Member entitled to attend and vote at the Annual General Meeting is entitled to appoint a proxy to attend and vote
instead of himself and the said proxy need not be a member of the company. The instrument appointing the proxy,
in order to be effective, must be deposited at the Registered Office of the company, duly completed and signed, not
less than forty eight hours before the commencement of the meeting.
4. A person can act as a proxy on behalf of members upto and not exceeding fifty and holding in aggregate not more
than ten percent of the total share capital of the Company carrying voting rights. A member holding more than ten
percent of the total share capital of the Company carrying voting rights may appoint a single person as proxy and
such proxy shall not act as a proxy for any other person or member.
5. Corporate members intending to send their authorized representative(s) to attend the Meeting are requested to send
to the Company a duly certified copy of the Board Resolution authorising their representative(s) to attend and vote
on their behalf at the Meeting.
6. Members holding shares in dematerialized form are requested to intimate all changes pertaining to their bank details
such as bank account number, name of the bank and branch details, MICR Code and IFSC Code, mandates,
nominations, power of attorney, change of address, change of name, email address, contact numbers etc to their
depository participant (DP). Changes intimated to the DP will then be automatically reflected in the Company’s
records. Similarly, Members holding their shares in physical form are requested to inform the above changes to the
Company or its Registrar and Share Transfer Agents (RTA), M/s.Karvy Computershare Private Limited (Karvy).
The Securities and Exchange Board of India (“SEBI”) has mandated the submission of Permanent Account Number
(PAN) by every participant in securities market. Members holding shares in electronic form are, therefore, requested
to submit the PAN to their depository participants with whom they are maintaining their demat accounts. Members
holding shares in physical form can submit their PAN details to Karvy.
7. To promote green initiative, members are requested to register their e-mail address through their Depository Participants
for sending future communications to them by e-mail. Members holding the shares in physical form may register
their e-mail addresses through the RTA, giving reference of their Folio Number.
8. Electronic copy of the Annual Report is being sent to all the members whose e-mail IDs are registered with the
Company’s RTA/Depository Participants, unless such members have requested for a hard copy of the same. However,
for members, who have not yet registered their e-mail address, physical copies of the Annual Report are being sent
through the permitted mode.

9. The Register of Members and Share Transfer Books of the Company will remain closed during the period from 21 st
September, 2018 to 27th September, 2018 (both days inclusive) for the purpose of determining members eligible for
participation in voting on the resolutions contained in the Notice of AGM and for the further dividend, to be declared
at the AGM.
10. The un-claimed dividends for the financial year ended 31st March, 1996 onwards and up to the financial year ended
31st March, 2010 were duly transferred to the Investors Education and Protection Fund (IEPF) set up by the Government
of India in accordance with the Companies Act as applicable at the time of such transfer. No claim is entertained
against the IEPF or the Company for the amount so transferred.
Pursuant to the provisions of the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and
Refund) Rules, 2016 and Amendment Rules, 2017 notified by the Ministry of Corporate Affairs, the Company is
required to transfer all shares in respect of which dividend has not been claimed by the members concerned for
seven consecutive years or more to Investor Education and Protection Fund (“IEPF”). Adhering to various requirements
set out in the Rules, the Company has taken appropriate action for transferring the shares to the Demat Account
opened by the IEPF Authority.
The company has already sent notices to all the Members whose Dividends are lying unclaimed against their name
for seven consecutive years or more. The Company has also uploaded on its website, www.sagarcements.in, the
details of such members whose shares have been transferred to IEPF Suspense Account. The shares transferred to
IEPF Suspense Account including all benefits, if any, accruing on such shares, can be claimed by the members
concerned from IEPF Authority, after following the procedure prescribed under the said Rules. The company has
transferred 1,49,334 shares to IEPF as per the requirements of the IEPF Rules in respect of the said unclaimed
dividend.
11. Members who have not yet encashed their dividend warrants in respect of the dividend declared for subsequent
years as detailed below are requested to make their claims to the Company. The details of dividend lying un-claimed
in respect of these years are available in the Company’s website, www.sagarcements.in.
Year Nature of Dividend Rate of Dividend
2010-11 Final 20% (` 2/- per share)
2011-12 Final 30% (` 3/- per share)
2012-13 Final 10% (` 1/- per share)
2014-15 Interim 50% (` 5/- per share)
2014-15 Final 25% (` 2.50/- per share)
2015-16 Interim 50% (` 5/- per share)
2016-17 Final 15% (` 1.50/- per share)
2017-18 Interim 25% (` 2.50/- per share)
12. Members may note that the Annual Report for 2017-18 is also available on the Company’s website
www.sagarcements.in for download.
13. Voting through Electronic Means
Pursuant to Section 108 of the Companies Act, 2013, read with its relevant Rules and the Regulations, the Company
is pleased to provide the facility to Members to exercise their right to vote by electronic means (Remote e-voting) for
all the Resolutions proposed to be passed at the AGM. The Members, whose names appear in the Register of Members /
list of Beneficial Owners as on 20th September, 2018, i.e. the date prior to the commencement of book closure date
are entitled to vote on the Resolutions set forth in this Notice. The remote e-voting period will commence at 9.00
a.m. on 23rd September, 2018, and will end at 5.00 p.m. on 26th September, 2018. The Company has appointed
M/s.B S S & Associates, Company Secretaries (Unique Code of Partnership Firm: P2012AP02600), as the ‘Scrutinizer’,
to scrutinize the e-voting process and voting through ballot in a fair and transparent manner. The Members desiring
to vote through remote e-voting may refer to the detailed procedure given hereinafter.
PROCEDURE AND INSTRUCTIONS FOR e-VOTING
I. Remote e-voting: In compliance with the provisions of Section 108 of the Companies Act, 2013, read with Rule
20 of the Companies (Management and Administration) Rules, 2014, as amended and the provisions of Regulation
44 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations,

2015, the Members are provided with the facility to cast their vote electronically, through the e-voting services
provided by Karvy Computershare Private Limited (Karvy) on all resolutions set forth in this Notice, from a place
other than the venue of the Meeting (Remote e-voting).
(A) In case a Member receives an email from Karvy [for Members whose email IDs are registered with the Company/
Depository Participants (s)]:
i. Launch internet browser by typing the URL: https://evoting.karvy.com.
ii. Enter the login credentials (i.e. User ID and password). In case of physical folio, User ID will be EVEN
(E-Voting Event Number) xxxx followed by folio number. In case of Demat account, User ID will be your
DP ID and Client ID. However, if you are already registered with Karvy for e-voting, you can use your
existing User ID and password for casting your vote.
iii. After entering these details appropriately, click on “LOGIN”.
iv. You will now reach password change Menu wherein you are required to mandatorily change your password.
The new password shall comprise of minimum 8 characters with at least one upper case (A- Z), one lower
case (a-z), one numeric value (0-9) and a special character (@,#,$, etc.,). The system will prompt you to
change your password and update your contact details like mobile number, email ID etc. on first login.
You may also enter a secret question and answer of your choice to retrieve your password in case you have
forgotten it. It is strongly recommended that you do not share your password with any other person and
that you take utmost care to keep your password confidential.
v. You need to login again with the new credentials.
vi. On successful login, the system will prompt you to select the “EVENT” i.e., ‘Name of the Company”
vii. On the voting page, enter the number of shares (which represents the number of votes) as on the Cut-off
Date under “FOR/AGAINST” or alternatively, you may partially enter any number in “FOR” and partially
“AGAINST” but the total number in “FOR/AGAINST” taken together shall not exceed your total shareholding
as mentioned herein above. You may also choose the option ABSTAIN. If the Member does not indicate
either “FOR” or “AGAINST” it will be treated as “ABSTAIN” and the shares held will not be counted under
either head.
viii. Members holding multiple folios/demat accounts shall choose the voting process separately for each folio/
demat accounts.
ix. Voting has to be done for each item of the notice separately. In case you do not desire to cast your vote on
any specific item, it will be treated as abstained.
x. You may then cast your vote by selecting an appropriate option and click on “Submit”.
xi. A confirmation box will be displayed. Click “OK” to confirm else “CANCEL” to modify. Once you have
voted on the resolution (s), you will not be allowed to modify your vote. During the voting period, Members
can login any number of times till they have voted on the Resolution(s).
xii. Corporate/Institutional Members (i.e. other than Individuals, HUF, NRI etc.) are also required to send
scanned certified true copy (PDF Format) of the Board Resolution/Authority Letter etc., together with
attested specimen signature(s) of the duly authorised representative(s), to the Scrutinizer at email
bssass99@gmail.com with a copy marked to evoting@karvy.com. The scanned image of the above mentioned
documents should be in the naming format “Corporate Name_Event No.”
(B) In case of Members receiving physical copy of Notice [for Members whose email IDs are not registered
with the Company/Depository Participants (s)]:
i. E-Voting Event Number – XXXX (EVEN), User ID and Password is provided in the Attendance Slip.
ii. Please follow all steps from Sl. No. (i) to (xii) above to cast your vote by electronic means.
II. Voting at AGM: The Members, who have not cast their vote through Remote e-voting or by sending their assent/
dissent through post can exercise their voting rights at the AGM. The Company will make necessary arrangements
in this regard at the AGM Venue. The facility for voting through electronic voting system (‘Insta Poll’) shall be
made available at the Meeting. Members who have already cast their votes by Remote e-voting or through post

are eligible to attend the Meeting; however these Members are not entitled to cast their vote again in the
Meeting.
A Member can opt for only single mode of voting i.e. through Remote e-voting or by sending their assent/dissent
through post or by voting at the AGM. If a Member casts votes by both electronic mode and through post, then
the voting done through Remote e-voting shall prevail over the vote cast through post.
OTHER INSTRUCTIONS
a. In case of any query and/or grievance, in respect of voting by electronic means, Members may refer to the
Help & Frequently Asked Questions (FAQs) and E-voting user manual available at the download section of
https://evoting.karvy.com (Karvy Website) or contact Mr.G.Ramesh Desai (Unit: Sagar Cements Limited) of
Karvy Computershare Private Limited, Karvy Selenium Tower B, Plot 31-32, Gachibowli, Financial District,
Nanakramguda, Hyderabad - 500 032 or at evoting@karvy.com or Phone No. 040 – 6716 1500 or call
Karvy’s Toll free No.1-800-34-54-001 for any further clarifications.
b. You can also update your mobile number and e-mail id in the user profile details of the folio which may be
used for sending future communication(s).
c. The remote e-voting period commences on 23rd September, 2018 at 9.00 A.M. (IST) and ends at 5.00 p.m.
(IST) on 26th September, 2018. During this period, Members of the Company, holding shares either in
physical form or in dematerialized form, as on the cut-off date of 20 th September, 2018, may cast their votes
electronically. A person who is not a Member as on the cut-off date should treat this Notice for information
purposes only. The remote e-voting module shall be disabled for voting thereafter. Once the vote on a
resolution(s) is cast by the Member, the Member shall not be allowed to change it subsequently.
d. The voting rights of Members shall be in proportion to their share of the paid up equity share capital of the
Company as on the cut-off date i.e. 20th September, 2018.
e. In case a person has become a Member of the Company after dispatch of AGM Notice but on or before the
cut-off date for E-voting i.e., 20th September, 2018, he/she may obtain the User ID and Password in the
manner as mentioned below :
i. If the mobile number of the member is registered against Folio No./ DP ID Client ID, the member may
send SMS: MYEPWD <space> E-Voting Event Number+Folio No. or DP ID Client ID to 9212993399
Example for NSDL:
MYEPWD <SPACE> IN12345612345678
Example for CDSL:
MYEPWD <SPACE> 1402345612345678
Example for Physical:
MYEPWD <SPACE> XXXX1234567890
ii. If e-mail address or mobile number of the member is registered against Folio No. / DP ID, Client ID,
then on the home page of https://evoting.karvy.com, the member may click “Forgot Password” and
enter Folio No. or DP ID, Client ID and PAN to generate a password.
iii. Member may call Karvy’s toll free number 1800-3454-001.
iv. Member may send an e-mail request to evoting@karvy.com. However, Karvy shall endeavour to send
User ID and Password to those new Members whose mail ids are available.
v. The results will be declared on or after the AGM. The results along with the Scrutinizer’s Report, will
also be placed on the website of the Company.
PROCEDURE AND INSTRUCTIONS FOR WEB CHECK-IN/ATTENDANCE REGISTRATION
1. Web Check- in / Attendance Registration: Members are requested to tender their attendance slips at the registration
counters at the venue of the AGM and seek registration before entering the meeting hall. Alternatively, to
facilitate hassle free and quick registration/entry at the venue of the AGM, the Company has provided a Web-
Check in facility through Karvy’s website. Web Check-in on the Karvy’s website enables the Members to register
attendance online in advance and generate Attendance Slip without going through the registration formalities at
the registration counters.

Procedure of Web Check-in is as under:
a. Log on to https://karisma.karvy.com and click on “Web Checkin for General Meetings (AGM/EGM/CCM)”.
b. Select the name of the company: Name of the Company.
c. Pass through the security credentials viz., DP ID/Client ID/Folio No. entry, PAN No & “CAPTCHA” as
directed by the system and click on the submission button.
d. The system will validate the credentials. Then click on the “Generate my attendance slip” button that
appears on the screen.
e. The attendance slip in PDF format will appear on the screen. Select the “PRINT” option for direct printing
or download and save for the printing.
f. A separate counter will be available for the online registered Members at the AGM Venue for faster and
hassle free entry and to avoid standing in the queue.
g. After registration, a copy will be returned to the Member.
h. The Web Check-in (Online Registration facility) is available for AGM during e-voting Period only i.e., from
9.00 a.m. (IST) on 23rd September, 2018 to 5.00 p.m. (IST) on 26th September, 2018.
i. The Members are requested to carry their valid photo identity along with the above attendance slip for
verification purpose.
14. The company has appointed M/s.B S S & Associates, Practicing Company Secretaries (Unique Code of Partnership
Firm: P2012AP02600), as the ‘Scrutinizer’ to scrutinize the voting and remote e-voting process (including the Ballot
Form received from the members who do not have access to the e-voting process) in a fair and transparent manner.
15. The Scrutinizer shall, immediately after the conclusion of voting at the AGM count the votes cast at the AGM,
thereafter unblock the votes cast through remote e-voting in the presence of at least two witnesses not in the employment
of the Company and not later than two days of conclusion of the AGM, submit a a consolidated Scrutinizer’s Report
of the total votes cast in favour or against, to the Chairman or a person authorized by him in writing, who shall
countersign the same. The result declared along with the Scrutinizer’s Report shall be placed on the Company’s
website www.sagarcements.in immediately. The Company shall simultaneously forward the results to National Stock
Exchange of India Limited and BSE Limited.]
16. In case a Member is desirous of obtaining a duplicate Ballot Form, he may send an e-mail to einward.ris@karvy.com
by mentioning his Folio/DP ID and Client ID No. However, the duly completed Ballot Form should reach the
Scrutinizer, M/s.B S S & Associates, Company Secretaries, Office: Parameswara Appartments, # 6-3-626, 5th Floor, 5
– A, Anand Nagar, Khairatabad, Hyderabad-500004 not later than 26 th September, 2018 (5.00 p.m. IST). Ballot Form
received after this date will be treated as invalid.
17. All documents referred to in the accompanying Notice and the Explanatory Statement shall be open for inspection at
the Registered Office of the company during normal business hours (9.30 a.m. to 6.00 p.m.) on all working days
except Saturdays and Sundays, up to the date of the Annual General Meeting of the Company.
18. Section 72 of the Companies Act, 2013 provides for Nomination by the shareholders of the Company and the
shareholders are requested to avail this facility.
R.Soundararajan
Registered Office:
Plot No.111, Road No.10, Jubilee Hills,
Hyderabad – 500 033, Telangana.

Annexure to the Notice of the 37th Annual General Meeting
Annexure 1
Statement pursuant to Section 102 (1) of the Companies Act 2013
As required by Section 102 of the Companies Act, 2013 (the Act), the following Explanatory Statement sets out all
material facts relating to the business mentioned under Item Nos.5 and 6 of the accompanying Notice dated 19th July
2018.
On Item No.5
The company presently meets its power requirement for its operations at its units in Mattampally and Bayyavaram from its
captive power units consisting of a thermal power plant located at its subsidiary company’s plant, waste heat recovery
plant and solar power plant located at its Mattampally Plant and the two mini hydel power plants one in Guntur District
and the other in Kurnool district, both in Andhra Pradesh. In addition to these sources, the company also buys power
from market through power exchange.
To enable your company to sell the power that may be rendered surplus after meeting its captive requirements from the
above sources as well as to set up / acquire power plants to meet its future requirements and, if need be, to sell surplus
power from them to third parties, it is proposed to insert a fresh sub-clause in the Memorandum of Association of the
Company as mentioned in the resolution. Accordingly, a resolution seeking amendment to the objects clause in the
Memorandum of Association to this effect is submitted in the Item No.5 of the Notice for approval of the members.
The Draft MoA of the Company will be open for inspection between 9:30 a.m. to 6:00 p.m. on all working days except
Saturdays and Sundays at the registered office of the Company situated at Plot No.111, Road No.10, Jubilee Hills, Hyderabad-
500 033, up to the date of the AGM of the Company.
None of the Directors or Key Managerial Personnel (KMP) or relatives of Directors and KMPs is concerned or interested,
financially or otherwise in the said Resolution.
Your directors recommend the passing of the resolution.
On Item No.6
In accordance with the provisions of Section 148 of the Act, 2013 and the Rules made there under, the remuneration
payable to the Cost Auditors needs to be ratified by the shareholders of the company.
The Board, on the recommendation of its Audit Committee, has approved the appointment of M/s.Narasimha Murthy &
Co., Cost Accountants as the Cost Auditors for the Financial Year 2018-19 and for payment of remuneration to the said
Cost Auditors.
Accordingly, an Ordinary Resolution as set out at Item No.6 of the Notice containing the remuneration recommended for
Cost Auditors is submitted for approval of the members.
None of the Directors or Key Managerial Personnel (KMP) or relatives of Directors and KMPs is concerned or interested,
financially or otherwise in the said Resolution.
Your directors recommend the passing of the resolution.
Hyderabad R.Soundararajan
Registered Office:
Jubilee Hills

Annexure 2
(Pursuant to Regulation 36(3) of SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015)
Details of Directors retiring by rotation and seeking re-appointment at the Annual General Meeting
Name of the Director Dr.S.Anand Reddy Shri John-Eric Fernand Pascal Cesar Bertrand
Date of birth 10.06.1964 16.11.1977
Experience in specific Corporate Executive Investment Manager
functional areas
Qualification M.B.B.S. University of Louvain (UCL)Master in
International Management Community of
European Management Schools (CEMS) Master
in Business Administration (MBA), INSEAD
Directorships in other Sagar Cements (R) Ltd. AvH Resources India Pvt.Ltd.
Companies Sagar Power Ltd., Oriental Quarries and Mines Pvt. Ltd.
Sagar Priya Housing and Industrial
Enterprises Ltd.
Panchavati Polyfibres Ltd.
Super Hydro Electric Pvt. Ltd.
SPL Renewable Energy Pvt. Ltd.
Membership of Audit / Sagar Cements Ltd., Member, Nil
Shareholders / Investors Stakeholders’ Relationship
Grievances Committees of Committee
other Public Limited Companies
No. of shares held in 13,03,524 Nil
Sagar Cements Ltd.
Inter-se relationship with Related to Shri S.Veera Reddy, None
other Directors of the Company Managing Director, Shri S.Sreekanth
Reddy, Executive Director and
Mrs. S.Rachana, Director
Hyderabad R.Soundararajan
Registered Office:
Jubilee Hills

DIRECTORS' REPORT AND MANAGEMENT
DISCUSSION AND ANALYSIS REPORT
DIRECTORS’ REPORT AND MANAGEMENT DISCUSSION AND ANALYSIS REPORT

Dear Members
Your Directors are pleased to present their Thirty Seventh Annual Report together with the audited Stand-alone and
Consolidated financial statements of the Company for the year ended 31 st March, 2018.
To avoid repetition in the Directors’ Report and the Management Discussion and Analysis Report, the information under
these reports is furnished below as a composite summary of the performance of the various aspects of the business of
your company.
Financial Results
This discussion on the financial condition and results of operations of the Company should be read in conjunction with
the Company’s audited stand-alone and consolidated financial statements and notes thereto for the year ended 31st March
2018, which are summarized below: ` in Lakhs
Stand-alone Consolidated
Particulars 2017-18 2016-17 2017-18 2016-17
Total income 79,461 64,312 1,08,502 94,511
Total expenses 71,852 61,908 1,03,935 94,089
Profit before tax 7,609 2,404 4,567 422
Total Tax 2,670 1,155 1,941 814
Profit after Tax 4,939 1,249 2,626 (392)
Other Comprehensive Income (20) (4) (12) (23)
Total Comprehensive Income 4,919 1,245 2,614 (415)
Basic & Diluted Earnings per share of ` 10 each 24.21 6.98 12.87 (2.19)
Higher capacity utilisation and growth in demand for cement in 2017-18 enabled your company to achieve its highest
ever revenue from its stand-alone operations registering a growth of 23% over the previous year. On a consolidated basis,
the total revenue crossed ` 1,000 crores during the year under report.
Dividend
Dividend is recommended by your Board in the context of the Company’s overall profitability, free cash flow, capital
requirements and other business needs as well as the applicable regulatory requirements.
In this background, an interim dividend of ` 2.50 (25%) per share on the 2,04,00,000 equity shares of ` 10/- was
announced for the year 2017-18 on 26th October, 2017 and the same was paid on 16th November, 2017. Your Board has
recommended a further dividend of ` 1.50 (15%) per share for the year 2017-18. The total dividend for the year 2017-18
would accordingly work out to ` 4/- (40%) per share, involving a sum of ` 9,82,11,840, which includes a sum of `
1,66,11,840 towards dividend tax.
The above said further dividend of ` 1.50 per share, if approved by the shareholders at the ensuing Annual General
Meeting, will be paid within 30 days of the said approval.
Transfer to reserves
As no transfer to any reserve is proposed, the entire balance available in the Profit and Loss Account is retained in it.
Share Capital
The paid up share capital of the company is ` 20,40,00,000/- consisting of 2,04,00,000 equity shares of ` 10/- each and
there was no change in share capital during the year under report.
Pursuant to the approval accorded by the Shareholders at their Extraordinary General Meeting held on 23.11.2016, your
board in the year 2016-17 had raised a sum of ` 48.96 crores by preferential allotment of 6,11,986 equity shares of
` 10/- each at a premium of ` 790/- per share and by allotment of 24,00,000 equity shares of ` 10/- each at a premium of
` 710/- per share through Qualified Institutional Placement, to fund the expansion of grinding capacity of your unit at
Bayyavaram from 0.3 million tons to 1.5 million tons, for setting up of a coal based power plant of 18 MW capacity at
your Mattampally Unit and for meeting its other general corporate purposes from time to time. Your directors are happy
to inform you of the successful completion of the expansion of the said grinding unit well ahead of the schedule. The
setting up of the power plant, which is progressing well, is also expected to be completed by the end of March, 2019.

Industry Structure and Development
Cement being a basic building material used widely in housing and industrial sectors and in developing infrastructure, its
per capita consumption is an important index for measuring the economic growth of a country. India being the world’s
second largest producer of cement and because of its strong connection with other sectors such as construction,
transportation, coal and power, cement industry occupies an important place in the economy, providing employment
directly and indirectly to more than a million people.
One of the main features of the Indian cement industry is that the location of limestone reserves in some of its states has
resulted in the formation of what is popularly known as cement clusters and Nalgonda in Telangana, where your company’s
Mattampally unit is located, is one of such clusters . The proximity to coal deposits is also an important factor in setting
up of a cement plant. Cement being a high bulk and low value commodity, competition also tends to be localized, since
the cost of transportation of cement to distant markets often results in the product being uncompetitive in those distant
markets.
Further, though the structure of Indian cement industry is considered to be a highly fragmented one, still 70 % of the total
cement production is from its top 20 cement companies.
Apart from the ready availability of raw materials such as limestone and coal, the other factor contributing to the growth
of this industry is increasing demand for cement emanating from the development in the infrastructure and construction
sectors. In this connection, some of the recent major initiatives such as development of ‘smart cities’ which are giving a
push to the demand for cement, providing further boost to this sector, augur well for the industry.
Whether it is affordable housing, roads, highways or ‘smart cities’, the entire industry has high hopes from the Government
as far as infrastructure spending is concerned and on such hopes materializing, the industry will look up and hopefully
grow by 8% in the current year.
Company’s stand-alone performance with reference to its operational performance:
Demand for cement is a derived demand, as it depends on growth of Infrastructure, construction and realty sectors, which
were on the path of recovery after a slow-down witnessed in the later part of the year 2016-17 due to disruption caused
by demonitisation. Further, revival of demand for cement in Telangana and Andhra Pradesh that was expected following
the bifurcation of the erstwhile State of Andhra Pradesh is also now gaining momentum, easing the pressure on the
pricing front, though only marginally. However, even as the infrastructure sector is slowly looking up, the housing segment,
which is the biggest demand driver for cement is yet to resume its potential growth.
Viewed in the above background, the overall performance of your company on a stand-alone basis during the year 2017-
18 in terms of production, sale, revenue and average net sales realization per ton of cement is satisfactory.
In terms of volume, your company achieved an increase of 28% and 30% in the cement production and sales respectively
over the previous year which, aided by a marginal increase in average sales realization per tonne of cement by 4.5%,
resulted in an increase of 23% in revenue and a 68% increase in the EBITA over the previous year.
Particulars 2017-18 2016-17
Cement Production in MTs 19,41,145 15,21,565
Cement Sales in MTs 20,04,808 15,37,237
Average Net Sales Realization per MT (` ) 3,214 3,077
Total Revenue ( ` in lakhs) 79,461 64,312

Subsidiaries, Joint Ventures and Associate Companies
In the year 2015, your company acquired the entire equity stake in BMM Cements Limited, which has now been re-
named as Sagar Cements (R) Limited. This wholly-owned subsidiary has its cement plant of 1.00 Million MTs per annum
capacity along with a coal based captive power plant of 25 MW capacity in Gudipadu Village in Ananthapur District, A.P.
After overcoming the initial constraint of operating at a very low capacity due to outsourcing lime stone at a higher cost
for its cement production on account of lack of permission to extract the limestone available in its captive mines, this unit
is now making use of the lime-stone available in the said captive mines after obtaining necessary permission therefor and
is currently operating at around 70% capacity. Its power unit is operating at 87% capacity.
As you are aware, the cement produced by this subsidiary is sold under the brand name “SAGAR CEMENT”. With this
subsidiary further consolidating itself and improving upon its operations, the investments made by your company in this
subsidiary will prove to be beneficial to your company in the long run.
Statement containing salient features of the financial statement of the above mentioned subsidiary has been given in Form
AOC-1 in the Annexure 1 to this report.
Your Company does not have any Joint Ventures or Associate Companies.
Grinding Unit in Bayyavaram
We had earlier informed you of the acquisition of a grinding unit of 1,81,500 MT capacity at Bayyavaram in Visakhapatnam
District in Andhra Pradesh and of the company’s plan to expand its capacity to 1.5 million tons. Your Directors are happy
to inform you that the said expansion as earlier mentioned in this report has since been completed.
The acquisition of the above said grinding unit and the subsequent expansion of its capacity, enable your company to
transport the surplus clinker available at its plant in Mattampally to the said unit, for grinding into slag cement to meet
the demand in markets in Odisha, West Bengal and in the Vizag region of Andhra Pradesh where, with the identification
of Vishakhapatnam and Kakinada in Andhra Pradesh and Bhubaneswar in Odisha for development as ‘smart cities’ under
the Prime Minister’s ‘Smart Cities Mission’, the focus is currently more on the investments in their infrastructure sector.

Opportunities and threats:
Constraints on inputs:
The cement industry is a highly energy intensive sector. Energy, along with other raw materials mainly comprising coal
and lime stone, forms a most critical component in the manufacture of cement. While your company does not face any
problems with respect to the availability of limestone, it attaches high priority to keep its energy cost, which forms a
significant portion of the input costs, to the minimum. This is sought to be achieved, among other means, by ensuring an
optimum combination in the consumption of indigenous coal along with imported coal, which is relatively cheaper.
After successfully commissioning the Waste Heat Recovery Plant with an initial capacity of 6 MW capacity, which is
presently operating at 8.50 MW capacity at its Mattampally plant, your company is now setting up a coal based plant of
18MW capacity at the said unit. Further, as your company is also keen on meeting its power requirement from renewable
energy sources, apart from setting up of a solar power plant of 1 MW capacity at the said plant, it has recently acquired 2
mini hydel power units, one with a capacity of 4.3 MW on the Guntur Branch Canal and the other with a capacity of 4
MW in Lock-in-Sula in Kurnool District, both in Andhra Pradesh.
Your directors hope that the above measures would contribute to your company’s efforts in further optimizing its energy
cost.
Freight cost
Cement being a freight-intensive industry, transportation of cement over long distances can be uneconomical and this has
made it largely a regional play. As the logistics and the optimizing the freight cost continue to be the main area of
concern with the distribution cost remaining a significant component in the cost structure notwithstanding the availability
of a railway siding at your plant, your company is also weighing various other options available to it like setting up of
grinding stations/full fledged cement plants in distant areas where opportunities exist, to cater to the local market and
this is sought to be achieved through routes like mergers, acquisitions, joint ventures, strategic marketing tie-ups and
setting up of green field projects. As part of optimizing the freight cost, demand in the Eastern markets, which until
recently was served by your company from its plant at Mattampally in Nalgonda District of Telangana is now being
serviced from its plant at Bayyavaram in Visakhapatnam in A.P.
Lower demand
Housing sector which accounts for a major portion of cement demand is yet to pick-up in a big way both in Telangana
and Andhra Pradesh, which are significant markets for your company. While the initiatives by the governments, like
‘Smart Cities Mission’, ‘affordable housing’ will help the construction, real estate, infrastructure and cement sectors in
due course, the cement industry may have to wait for some more time to see any significant revival in demand in these
states.
In the above circumstance, your company which has its major markets in Telangana, Andhra Pradesh and in the border
areas of the other neighboring States, needs to look into expanding its Markets beyond these areas. However, the freight
cost involved in moving the material from its plants at Mattampally and Bayyavaram to these areas, discourages it to do
so, as the price of the locally produced cement in such areas would tend to be much cheaper.
As the company cannot afford any more to ignore the growing demand for cement in its neighboring states just because
of the transportation cost involved in catering to these markets, apart from serving these markets from its own production,
it buys cement in bulk from other sources located in these states and sell the same in the retail markets in those areas
under the brand name ‘Sagar Cement’, wherever there is cost advantage in doing so. It is hoped that this, apart from
increasing the sales turnover of the company without incurring any additional capital expenditure and in turn improving
its bottom line, would help it in popularizing its brand in new areas as well as in firmly establishing it in the areas where
it might only have a token presence at present.
Impact of new entrants:
The Indian cement industry with its huge potential continues to attract the entry of global cement majors and encourages
the strengthening of production bases by existing companies. This may lead to a substantial part of the cement capacity
being controlled by a few players. Sagar Cements proposes to meet some of the challenges posed by this development, by
focusing on cost reduction and by further improving its brand image, greater expenditure on advertising, strengthening its
distribution networks as well as by other customer-focused initiatives. Apart from these, Sagar Cements is looking for
opportunities to expand its market through strategic alliance and setting up of grinding stations, wherever viable.

Segment-wise /product-wise performance:
As your company operates in only one segment, namely manufacture and sale of cement, there is no other reportable
segment or product.
Future outlook
The per capita consumption of cement is still very low in India and therefore there is a vast scope for growth in its demand
on the long term. However, for such a real growth to happen, there should be an overall growth in investments in the real
estate and infrastructure sectors. Since India is emerging as one of the fastest growing economies in the world, the future
outlook for cement looks to be bright, provided government formulates growth oriented policies, so that our per capita
cement consumption matches at least with some of the developing economies. Notwithstanding the plans to expand its
market in other states, Telangana and Andhra Pradesh will continue to be the major markets for your Company. With the
respective Governments in these states rightly focusing on the development of infrastructure along with the importance
given by the Union Government for the development of National Highways, Rural and Urban Roads, Affordable Housing,
Port Connectivity, Development of smart cities, etc., coupled with private agencies coming up with a slew of their own
infrastructure development projects, demand for cement in these and their neighboring states is expected to see a significant
growth, which augurs well for your company, which, with its aggressive and innovative marketing duly supported by its
well motivated marketing personnel, is poised to grab the opportunity available in this scenario.
However, till such time that the above scenario becomes a reality, your company may have to continue to face the
problems like rising input and distribution costs, despite the efforts being made by your company as mentioned above to
mitigate the same.
The impact of the Goods and Services Tax rate has since been absorbed by the cement industry. The Company, on its
part, will optimize the distribution/warehouse network under GST regime to further improve its operational efficiency.
Therefore, taking an overall view of the above, your Board is cautiously optimistic about the future outlook for your
company.
Risk Management System:
Your Company attaches utmost importance to the assessment of internal risks and the management thereof in all its
dealings. Your Company is constantly on the lookout for identifying opportunities to enhance its enterprise value. Keeping
the need to minimize the risks associated with such efforts, every proposal of significant nature is screened and evaluated
for the risks involved and then approved at different levels in the organization before implementation.
With a view to overcoming the risk of dependence upon any particular marketing segment or region, your Company is
trying to reach out to a wider section of its ultimate consumers. As the cement industry is witnessing rapid additions to its
capacity in Telangana and A.P., in order to mitigate the risk associated with it, Sagar Cements, whose revenue is mainly
from sales in these two states, is looking for growth opportunities in other States as well, where infrastructure spending is
set to get a boost.
Your Company has adequate system to manage the financial risks of its operations. This system is implemented through
imposition of checks and balances on extending credit to the customers, audits like internal audit, statutory, cost and
secretarial audit, all of which are periodically carried out through external firms, proper appraisal of major capital
expenditure, adherence to the budget norms covering all areas of its operations and by adequate insurance coverage for
the company’s facilities.
Internal Control System and its adequacy:
Your Board of Directors are satisfied with the adequacy of the internal control system currently in force in all major areas
of operations of the Company, which is supported by an ERP and compliance management systems. Their audit committee
assists the board of directors in monitoring the integrity of the financial statements, reservations, if any, expressed by the
company’s auditors including, the financial, cost, internal and secretarial auditors and based on their inputs, your board
is of the opinion that the company’s internal controls are adequate and effective.
Human resource development and Industrial Relations
Your Company continues to enjoy cordial relationship with all its personnel working at its Plants, Offices and on the field.
Your company is organizing training programmes wherever required for the employees concerned to improve their skill.
Employees are also encouraged to participate in the seminars organized by the external agencies on the subjects related
to the areas of their operations.

Your company continues to focus on attracting and retaining competent personnel and providing them with a holistic
environment where they get opportunities to grow and realize their full potential. Your company is committed to providing
all its employees with a healthy and safe work environment.
Sexual Harassment
Under the Sexual Harassment of Women at the work place (Prevention, Prohibition & Redressal) Act, 2013, your company
has constituted an Internal Complaints Committee. No complaints were received or disposed off during the year under
the above Act.
Awards and Recognitions
Your company has already achieved ISO Certification ISO 9001:2008 for Quality Management System Standard, ISO
14001:2004 for Environmental Management System Standard and OHAS 18001:2007 for Occupational Health and Safety
Management System Standard.
As you are aware, your company’s Laboratory at its Plant in Mattampally is the recipient of the Accreditation by the
National Accreditation Board for Testing and Calibration Laboratories (NABL), which is the sole accreditation body for
testing and calibration of laboratories under the aegis of Department of Science and Technology, Government of India.
Directors Responsibility Statement
Pursuant to Section 134 (5) of the Companies Act, 2013, your board of directors, to the best of their knowledge and
ability, confirm that:
i. in the preparation of the annual accounts, the applicable accounting standards have been followed and there are
no material departures;
ii. the directors have selected such accounting policies and applied them consistently and made judgments and
estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the company at
the end of the financial year and of the profit of the company for that period;
iii. the directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance
with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting fraud
and other irregularities;
iv. the directors have prepared the annual accounts on a going concern basis;
v. the directors have laid down internal financial controls to be followed by the company and such internal financial
controls are adequate and operating effectively;
vi. the directors have devised proper systems to ensure compliance with the provisions of all applicable laws and that
such systems are adequate and operating effectively.
Directors and Key Managerial Personnel
In accordance with the provisions of Section 152 of the Companies Act, 2013, Dr.S.Anand Reddy and Shri John-Eric
Fernand Pascal Cesar Bertrand will be retiring by rotation at the ensuing Annual General Meeting and being eligible, offer
themselves for re-appointment. Accordingly, the resolutions seeking the approval of the members for the said re-
appointments have been incorporated in the notice of the annual general meeting of the company.
Excepting Mrs. S.Rachana, who is a director in Panchavati Polyfibres Limited and in R.V.Consulting Services Private
Limited, whose transactions with the company have been reported under the related parties disclosure under notes to the
accounts, none of the non-executive directors has had any pecuniary relationship or transactions with the company, other
than the receipt of sitting fee for the meetings of the Board and Committees thereof attended by them.
Independent Directors Declaration
The company has received the necessary declaration from each Independent Director in accordance with Section 149 (7)
of the Companies Act 2013, that he meets the criteria of independence as laid out in sub-section (6) of Section 149 of the
Companies Act 2013.
Number of meetings of the board
Six (6) meetings of the board were held during the year 2017-18. Details of these meetings have been given in the
corporate governance report, which forms part of the Annual Report.

Policy on directors’ appointment and remuneration and other details
The company’s policy on directors’ appointment and remuneration and other matters provided in Section 178 (3) of the
Act have been disclosed in the corporate governance report.
Under Section 178 (3) of the Companies Act, 2013, the Nomination and Remuneration Committee of the board has
adopted a policy for nomination, remuneration and other related matters for directors and senior management personnel.
A gist of the policy is available on the Companies website, www.sagarcements.in.
Board evaluation
The Board of directors have carried out an evaluation of its own performance and of its committees as well as its individual
directors, on the basis of criteria such as composition of the board / committee structure, effectiveness, its process,
information flow and functioning etc.
Auditors
M/s. Deloitte Haskins & Sells, Chartered Accountants (FR No.008072S) were appointed as Statutory Auditors of the
company by the company at the 34th Annual General Meeting held on 23rd September, 2015, to hold office from the
conclusion of the said Annual General Meeting till the conclusion of the 39th Annual General Meeting. Though the said
appointment was required to be ratified at every annual general meeting under Section 139, in accordance with the
Companies Amendment Act 2017, enforced from 7th May, 2018 by Ministry of Corporate Affairs, the appointment of
Statutory Auditors is not required to be ratified at every annual general meeting anymore.
Auditors’ Report and Secretarial Auditors’ Report
Auditors’ Report
The auditors’ report on the financial statements of the company is part of this report and it does not contain any qualifications,
reservations or adverse remarks.
Secretarial Auditors’ Report
In accordance with Section 204 (1) of the Companies Act, 2013, the report furnished by the Secretarial Auditors, who
carried out the secretarial audit of the company under the said Section, is given in the Annexure 2, which forms part of
this report. There are no adverse remarks in the said report. Your company has complied with the Secretarial Standards
applicable for holding Board and General Meetings.
Cost Auditors
M/s.Narasimha Murthy & Co., (FR No.000042) Cost Auditors of the company have been appointed as Cost Auditors of the
company for the year ending 31st March, 2019. A resolution seeking shareholders’ ratification of the remuneration payable
to the Cost Auditors has been included in the notice of the AGM. The reports submitted by the Cost Auditors are filed with
the appropriate authorities.
Particulars of loans, guarantees and investments
The particulars of loans, guarantees and investments have been disclosed in the financial statements at appropriate places.
Transactions with related parties
None of the transactions with related parties falls under the scope of Section 188 (1) of the Act. Information on transactions
with related parties pursuant to Section 134 (3) (h) of the Act read with rule 8 (2) of the Companies (Accounts) Rules, 2014
are given in Annexure-3 in Form AOC-2 and the same forms part of this report.
All related party transactions entered into during the financial year were on arms length basis and in the ordinary course
of business. There were no materially significant related party transactions entered into by the company with the promoters,
key management personnel or other designated persons that may have potential conflict with the interests of the company
at large. All related party transactions had prior approval of the Audit Committee and were later ratified by the Board.
Corporate Social Responsibility
The brief outline of the Corporate Social Responsibility (CSR) Policy of your company along with the initiative taken by it
are set out in Annexure-4 of this report in the format prescribed in the Companies (Corporate Social Responsibility Policy)
Rules, 2014. The policy is available on the website of the company, http://www.sagarcements.in/csr.html.

Extract of Annual Return
As provided under Section 92 (3) of the Act, an extract of annual return is given in Annexure-5 in the prescribed Form
MGT-9, which forms part of this report, a copy of the same is also available on the company’s website www.sagarcements.in.
Particulars of Employees
The information required under Section 197 of the Act read with Rule 5 (1) and 5 (2) of the Companies (Appointment and
Remuneration of Managerial Personnel) Rules are given in the Annexure-6, which forms part of this report.
a. The ratio of the remuneration of each director to the median remuneration of the employees of the Company for the
financial year is as under:
Particulars Ratio to Median Remuneration
Non-Executive Directors *
Executive Directors
Shri S.Veera Reddy 63.14
Dr.S.Anand Reddy 53.25
Shri S.Sreekanth Reddy 48.30
*Non-Executive Directors are not paid any remuneration, other than sitting fee.
b. The percentage increase in the remuneration of each director, chief executive officer, chief financial officer, company
secretary in the financial year is as under:
Director, Chief Executive Officer, Chief Financial Officer % increase in remuneration in the
and Company Secretary financial year
Shri O.Swaminatha Reddy During the financial year, these directors were
Shri K.Thanu Pillai not paid any remuneration, other than sitting
Shri T.Nagesh Reddy (APIDC Nominee) fee, in which there was no increase
Shri John-Eric Fernand Pascal Cesar Bertrand
Shri V.H.Ramakrishnan
Mrs.S.Rachana
Shri S.Veera Reddy 112.46
Dr.S.Anand Reddy 79.12
Shri S.Sreekanth Reddy 115.61
Shri R.Soundararajan 9.56
Shri K.Prasad 12.47
c. The percentage increase in the median remuneration of employees in the financial year: 5.62%
d. The number of permanent employees on the rolls of Company: 507
e. The explanation on the relationship between average increase in remuneration and Company performance:
On an average, employees in India received an annual increase of around 10%.
In order to ensure that remuneration reflects Company performance, the performance of the company is also one of
the parameters for fixing the remuneration to the employees.
f. Comparison of the remuneration of the key managerial personnel against the performance of the Company:
Aggregate remuneration of key managerial personnel (KMP) in FY 2017-18 (` crores) 3.24
Revenue (` crores) 794.61
Remuneration of KMPs (as % of revenue) 0.41
Profit before Tax (PBT) (` crores) 76.09
Remuneration of KMP (as % of PBT) 4.26
g. Variations in the market capitalization of the company, price earnings ratio as at the closing date of the current
financial year and previous financial year are as under:

Particulars March 31, 2018 March 31, 2017 % Change
Market capitalization (in Crores) 1,886.02 1,622.72 16.23
Price Earning Ratio 38.19 113.96 66.49
h. Percentage increase or decrease in the market quotations of the shares of the company in comparison to the issue
price at which the company came out with its last public offer:
Particulars March 31, 2018 June 22, 1992 % Change
Market Price in NSE 923.00 Not listed -
Market Price in BSE 924.55 45.00 1954.56
i. Average percentage increase already made in the salaries of employees other than the managerial personnel in the
last financial year and its comparison with the percentile increase in the managerial remuneration and justification
thereof.
The average annual increase was around 15.42% for personnel other than managerial personnel.
Increase in the managerial remuneration (Whole-time Directors) for the year was 101.21% (including commission).
j. Comparison of remuneration of the each key managerial personnel against the performance of the Company:
Description MD CS CFO
Remuneration in FY2017-18 (lakhs) 268.00 27.52 34.65
Revenue (lakhs) 79,461
Remuneration as % of revenue 0.337 0.035 0.044
Profit before Tax (PBT) (lakhs) 7,609
Remuneration (as % of PBT) 3.522 0.362 0.455
k. The key parameters for any variable component of remuneration availed by the directors:
Commission is the only variable component which depends on profit earned by the comapny during the relevant
year and the same is subject to approval of the shareholder/remuneration committee / Board and to other applicable
regulatory approvals.
l. The ratio of the remuneration of the highest paid director to that of the employees who are not directors but receive
remuneration in excess of the highest paid director during the year: None.
m. Affirmation that the remuneration is as per the remuneration policy of the Company:
The Company affirms that remuneration is as per the remuneration policy of the Company.
Other Disclosure requirements
A report on corporate governance together with auditors’ certificate thereon has been furnished as part of the Annual
Report.
Policy on dealing with related party transactions is available on the website of the company (www.sagarcements.in).
The company has formulated and published a Whistle Blower Policy to provide Vigil Mechanism for employees of the
company to report their genuine concerns. The provisions of this policy are in line with the provisions of the Section 177
(9) of the Act and the Listing Regulations and the same is available on the company’s web site.
Deposits from public
The company has not accepted any deposits from public and as such, no amount on account of principal or interest on
deposits from public was outstanding as on the date of the balance sheet.
Conservation of Energy, Technology absorption and Foreign Exchange Earnings and Outgo:
The particulars required under Section 134 (3) (m) of the Companies Act, 2013 have been provided in the Annexure 7,
which forms part of the Report.

Insurance
All the properties of the Company have been adequately insured.
Pollution Control
Your company is committed to keep the pollution at its plants within the acceptable norms and as part of this commitment,
it has inter-alia, adequate number of bag filters in the plant.
Sub Committees of the Board
The Board has Audit Committee, Nomination and Remuneration Committee, Investment Committee, Corporate Social
Responsibility Committee, Stakeholders’ Relationship Committee and Securities Allotment Committee. The composition
and other details of these committees, have been given in the Report on the Corporate Governance forming part of the
Annual Report.
Compliance Certificate
A certificate as stipulated under Schedule V (E) of the Listing Regulations from the Statutory Auditors of the Company
regarding compliance with the conditions of Corporate Governance is attached to this Report along with a report on
Corporate Governance.
Material changes and Commitments since the end of the Financial Year
There were no material changes or commitments between the end of the financial year and the date of this report.
Cautionary Statement
Statements in these reports describing company’s projection statements, expectations and hopes are forward looking.
Though, these expectations etc., are based on reasonable assumption, the actual results might differ.
Acknowledgement
Your Directors wish to place on record their appreciation of the valuable co-operation extended to your Company by its
bankers and various authorities of the State and Central Government. They thank the Distributors, Dealers, Consignment
Agents, suppliers and other business associates of your Company for their continued support. Your Board also takes this
opportunity to place on record its appreciation of the contributions made by employees of your company at all levels and
last but not least, of the continued confidence reposed by you in the Management.
For and on behalf of the Board of Directors
Hyderabad O. Swaminatha Reddy

19th July, 2018 Chairman

Annexure 1
Form AOC-1
(Pursuant to first proviso to sub-section (3) of Section 129 read with rule 5 of Companies (Accounts) Rules, 2014)
Statement containing salient features of the financial statement of subsidiaries/associate companies/joint ventures
Part “A”: Subsidiaries
(Information in respect of each subsidiary to be presented with amounts in Lakhs)
Sl. No. Particulars Details
1. Name of the subsidiary SAGAR CEMENTS (R) LIMITED
2. Reporting period for the subsidiary concerned, if different from the holding Not Applicable
company’s reporting period
3. Reporting currency and Exchange rate as on the last date of the relevant Indian Rupees
Financial year in the case of foreign subsidiaries
4. Share Capital 10,381
5. Reserves & surplus (3,013)
6. Total Assets 55,054
7. Total Liabilities 55,054
8. Investments Nil
9. Turnover 34,375
10 Loss before taxation (2,876)
11. Provision for taxation 729
12. Loss after taxation 2,147
13. Proposed Dividend Nil
14. % of shareholding 100%
Notes: The following information shall be furnished at the end of the statement:
1. Names of subsidiaries which are yet to commence operations: Nil.
2. Names of subsidiaries which have been liquidated or sold during the year: Nil
Part “B”: Associates and Joint Ventures
The Company doesnot have any Associates or Joint Ventures
Statement pursuant to Section 129 (3) of the Companies Act, 2013 related to Associate Companies and Joint Ventures:
Name of Associates/Joint Ventures Nil
Latest audited Balance Sheet Date Nil
Shares of Associate/Joint Ventures held by the company on the year end Nil
No. Nil
Amount of Investment in Associates/Joint Venture Nil
Extent of Holding% Nil
Description of how there is significant influence Nil
Reason why the associate/joint venture is not consolidated Nil
Net worth attributable to shareholding as per latest audited Balance Sheet Nil
Profit/Loss for the year Nil
Considered in Consolidation Nil
Not Considered in Consolidation Nil
1. Names of associates or joint ventures which are yet to commence operations: Nil
2. Names of associates or joint ventures which have been liquidated or sold during the year: Nil
S.Veera Reddy Dr.S.Anand Reddy
Managing Director Joint Managing Director
S.Sreekanth Reddy K.Prasad
Executive Director Chief Financial Officer
Place: Hyderabad R.Soundararajan
Date: July 19, 2018 Company Secretary

ANNEXURE – 2
Form No. MR-3
Secretarial Audit Report
For the Financial Year ended on 31st MARCH, 2018
[Pursuant to Section 204(1) of the Companies Act, 2013 and
Rule No. 9 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014]
To,
The Members,
Sagar Cements Limited,
Plot No.111, Road No.10,
Jubilee Hills,
Hyderabad-500033, Telangana.
We have conducted the secretarial audit of the compliance of applicable statutory provisions and the adherence to good
corporate practices by Sagar Cements Ltd., (hereinafter called “the Company”). Secretarial Audit was conducted in a
manner that provided us a reasonable basis for evaluating the corporate conducts/statutory compliances and expressing
our opinion thereon.
Based on our verification of Sagar Cements Ltd’s books, papers, minute books, forms and returns filed and other records
maintained by the company and also the information provided by the Company, its officers, agents and authorized
representatives during the conduct of secretarial audit, we hereby report that in our opinion, the Company, during the
audit period covering the financial year ended on March 31, 2018 complied with the statutory provisions listed hereunder
and also the Company has proper Board-processes and compliance-mechanism in place to the extent, in the manner and
subject to the reporting made hereinafter:
We have examined the books, papers, minute books, forms and returns filed and other records maintained by Sagar
Cements Ltd (“the Company”) for the financial year ended on March 31, 2018 according to the provisions of:
1) The Companies Act, 2013 (the Act) and the rules made thereunder;
2) The Securities Contracts (Regulation) Act, 1956 (‘SCRA’) and the rules made thereunder;
3) The Depositories Act, 1996 and the Regulations and Bye-laws framed thereunder;
4) Foreign Exchange Management Act, 1999 and the rules and regulations made thereunder to the extent of Foreign
Direct Investment, Overseas Direct Investment and External Commercial Borrowings;
5) The following Regulations and Guidelines prescribed under the Securities and Exchange Board of India Act, 1992
(‘SEBI Act’):-
a. The Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations,
2011;
b. The Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015;
c. The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009;
d. Securities and Exchange Board of India (Share Based Employee Benefit) Regulations, 2014 - Not applicable as
the Company has not granted any Options to its employees during period under review;
e. Securities and Exchange Board of India (Issue and Listing of Debt Securities) Regulations, 2008 - Not applicable
as the Company has not issued any debt securities during the period under review;
f. Securities and Exchange Board of India (Registrars to an Issue and Share Transfer Agents) Regulations, 1993
regarding the Companies Act and dealing with client - Not applicable as the Company is not registered as
Registrar to an Issue and Share Transfer Agent during the period under review;
g. Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2009 - Not applicable as the
Company has not delisted its equity shares from any stock exchange during the financial year under review; and

h. Securities and Exchange Board of India (Buyback of Securities) Regulations, 1998 - Not applicable as the Company
has not bought back its securities during the period under review.
6) Employees Provident Fund and Miscellaneous Provisions Act, 1952
7) Employees State Insurance Act, 1948
8) Employers Liability Act, 1938
9) Environment Protection Act, 1986 and other environmental laws
10) Equal Remuneration Act, 1976
11) Factories Act, 1948
12) Hazardous Wastes (Management and Handling) Rules, 1989 and Amendment Rule, 2003
13) Maternity Benefits Act, 1961
14) Minimum Wages Act, 1948
15) Negotiable Instruments Act, 1881
16) Payment of Bonus Act, 1965
17) Payment of Gratuity Act, 1972
18) Payment of Wages Act, 1936 and other applicable labour laws
19) Laws specially applicable to the industry to which the Company belongs, as identified by the Management:
i. Cement Cess Rules, 1993;
ii. Cement (Quality Control) Order, 1995;
iii. Environmental (Protection) Act, 1986 Read with Environmental Protection Rules, 1986;
iv. The Hazardous Wastes (Managements Handling and Transboundry Movement) Rules, 2008;
v. The Water (Prevention & Control of Pollution) Act, 1974 read with Water (Prevention & Control of Pollution)
Rules, 1975;
vi. Water (Prevention & Control of Pollution) Cess Act, 1977;
vii. The Air (Prevention & Control of Pollution) Act, 1981 read with Air (Prevention & Control of Pollution) Rules,
1982;
viii. The Noise Pollution (Regulation And Control) Rules, 2000; and
ix. Mines Act, 1952 and Rules issued thereunder.
We have also examined compliance with the applicable clauses of the following:
(i) Secretarial Standards issued by the Institute of Company Secretaries of India;
(ii) The SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
During the period under review the Company has complied with the provisions of the Act, Rules, Regulations, Guidelines,
Standards, etc. mentioned above.
We further report that on examination of the relevant documents and records and based on the information provided by
the Company, its officers and authorized representatives during the conduct of the audit, and also on the review of
compliance reports by respective department heads / Company Secretary of the Company, in our opinion, there exist
adequate systems and processes and control mechanism exist in the Company to monitor and ensure compliance with
applicable general laws.
We further report that the compliances by the Company of applicable financial laws, like direct and indirect tax laws,
have not been reviewed in this audit since the same have been subject to review by internal auditors and other designated
professionals.

We further report that the Board of Directors of the Company has been duly constituted with proper balance of Executive
Directors, Non-Executive Directors and Independent Directors. There were no changes in the composition of Board of
Directors during the period under review.
We further report that adequate notice was given to all directors to schedule the Board Meetings and agenda with
detailed notes there on were sent to them at least seven days in advance, and a system exists for seeking and obtaining
further information and clarifications as may be required by them on the agenda items before the meeting and for meaningful
participation at the meeting.
As per the minutes of the meetings duly recorded and signed by the Chairman, the decisions of the Board were without
any dissent.
We further report that during the year under our audit no event having a major bearing on the Company’s affairs
occurred.
For B S S & Associates
Company Secretaries
S.Srikanth
Partner
Place: Hyderabad ACS No.: 22119
Date: 14-05-2018 C P No.: 7999
This Report is to be read with our letter of even date which is annexed as Annexure A and forms an integral part of this
report.
Annexure A
To,
The Members,
Sagar Cements Ltd.,
Plot No.111, Road No.10,
Jubilee Hills, Hyderabad-500033, Telangana.
Our report of even date is to be read along with this letter.
1. Maintenance of Secretarial record is the responsibility of the management of the Company. Our responsibility is to
express an opinion on these secretarial records based on our audit.
2. We have followed the audit practices and processes as were appropriate to obtain reasonable assurance about the
correctness of the contents of the Secretarial records. The verification was done on test basis to ensure that correct
facts are reflected in Secretarial records. We believe that the process and practices, that we followed provide a
reasonable basis for our opinion.
3. We have not verified the correctness and appropriateness of financial records and Books of Accounts of the Company.
4. Wherever required, we have obtained the Management representation about the Compliance of laws, rules and
regulations and happening of events etc.
5. The compliance of the provisions of Corporate and other applicable laws, rules, regulations, standards is the
responsibility of management. Our examination was limited to the verification of procedure on test basis.
6. The Secretarial Audit report is not an assurance as to the future viability of the Company or of the efficacy or
effectiveness with which the management has conducted the affairs of the Company.
For B S S & Associates
Company Secretaries
S.Srikanth
Partner
Place: Hyderabad ACS No.: 22119
Date: 14-05-2018 C P No.: 7999

Annexure 3
Form No. AOC-2
[ Pursuant to Clause (h) of sub-section (3) of Section 134
of the Act and Rule 8 (2) of the Companies (Accounts) Rules, 2014 ]
Form for disclosure of particulars of contracts / arrangements entered in to by the company with related parties referred to
in sub-section (1) of section 188 of the Companies Act, 2013 including certain arms length transactions under third
proviso thereto.
1. Details of contracts or arrangements or transactions not at arm’s legth basis:
Sagar Cements Limited has not entered into any contract or arrangement or transaction with its related parties which
is not in its ordinary course of business or at arm’s length during financial year 2017-18.
2. Details of material contracts or arrangements or transactions at arm’s length basis:
There were no material contracts or arrangements or transactions with related parties during the financial year
2017-18.
On behalf of the Board of Directors
Hyderabad O.Swaminatha Reddy
19th July, 2018 Chairman
Annexure 4
Annual Report on CSR Activities
1. A brief outline of the company’s CSR policy, including overview of projects or programmes proposed to be undertaken
is given below and the same is also available on the website of the company, www.sagarcements.in.
SCL is committed to operate and grow its business in a socially responsible way, while reducing the environmental
impact of its operations and increasing its positive social impact.
It aims to achieve growth in a responsible way by encouraging people to take small every day actions that will impact
a big difference. This SCL CSR Policy is guided by the following principles:
1. To conduct its operations with integrity and responsibility keeping in view the interest of all its stakeholders.
2. It believes that growth and environment should go in hand and hand.
3. It looks formal collaboration with different stakeholders including Governments, NGOs, IGOs, Suppliers, Farmers
and Distributors to tackle the challenges faced by the society.
The activities undertaken / to be undertaken by the company as CSR activities are not expected to lead to any
additional surplus beyond what would accrue to the company in the course of its normal operations.
In accordance with Section 135 (5) of the Companies Act, 2013, the company is committed to spend atleast 2% of
the average net profit made during the three immediately preceding financial years in areas listed out in the Schedule
7 of the Companies Act, 2013.
The company has a structured governance procedure to monitor its CSR activities, for which purpose, it has constituted
a CSR Committee with an independent director as its Chairman.
2. The composition of the CSR Committee:
The company has a CSR committee of directors comprising of Shri K.Thanu Pillai, Chairman of the Committee,
Dr.S.Anand Reddy and Shri S.Sreekanth Reddy as its members.
3. Average net Profit/(Loss) of the company for last three financial years for the purpose of computation of CSR:
` 4,142.41 lakhs.
4. Prescribed CSR Expenditure (two per cent of the amount as in Item 3 above): ` 82.85 lakhs.
5. Details of CSR spent during the financial year:
a. Total amount spent for the financial year: ` 94.78 lakhs.
b. Amount unspent: Nil

26
Sagar Cements Limited - Annual Report 2017-18 c. Manner in which the amount was spent during the financial year: (in Rs.)
Sl. CSR Project or Sector in which Projects or programs Amount Amount spent Cumulative Amount
No Activity identified the project is covered (1) Local area or other Outlay (budget) on the projects Expenditure Spent:
(2) Specify the State project or or programs upto the Direct or
and district where programs wise Subheads : reporting through
projects or programs (1) Direct period implementing
was undertaken Expenditure agency
(2) Overheads
01 Preventive health care Preventive health care and Local Areas of 27,37,747 27,37,747 37,94,040 Direct
and promotion for promotion of sanitation Nalgonda Dist,
safe drinking water and making available safe Telangana
drinking water.
02 Training and educating Promotion of Education Local Areas of 36,94,974 36,94,974 57,55,931 Direct
and infrastructure for it. Nalgonda Dist,
Telangana
03 Training and promotion Organizing sports events Local Areas of 10,26,786 10,26,786 22,95,006 Direct
of sports and sponsor of Nalgonda Dist,
sports personnel Telangana
04 Rural Development Laying of Roads and Local Areas of 20,18,475 20,18,475 82,44,568 Direct
related works Nalgonda Dist,
Telangana
Total CSR Spent 94,77,982 94,77,982 2,00,89,545
6. In case the company has failed to spend the two percent of the average net profit of the last three financial years or any part thereof, the company
shall provide the reasons for not spending the amount in its Board report:
Not applicable
7. A responsibility statement of the CSR committee that the implementation and monitoring of CSR policy, is in compliance with CSR objectives and
policy of the company:
We hereby declare that implementation and monitoring of the CSR policy are in compliance with the CSR objectives and the policy of the company.
S.Veera Reddy K.Thanu Pillai

Managing Director Chairman, Corporate Social Responsibility Committee
Hyderabad, 19th July, 2018

Annexure 5
Form No.MGT-9
Extract of Annual Return
as on the financial year ended on March 31, 2018
[ Pursuant to Section 92 (3) of the Companies Act, 2013 and rule 12 (1) of the Companies
(Management and Administration) Rules, 2014 ]
I. Registration and other details

i. CIN : L26942TG1981PLC002887
ii. Registration Date : 15.01.1981
iii. Name of the Company : Sagar Cements Limited
iv. Category / Sub-Category of the Company : Company Limited by Shares /
Indian Non-Government Company
v. Address of the Registered Office and contact details : Plot No.111, Road No.10, Jubilee Hills
Hyderabad-500 033
Tel: 91 40 23351571, Fax: 91 40 23356573
Email: soundar@sagarcements.in
Website: www.sagarcements.in
vi. Whether listed company : Yes
vii. Name, Address and Contact details of Registrar : Karvy Computershare (P) Limited
and Transfer Agent, if any Karvy Selenium Tower B, Plot 31-32 Gachibowli,
Financial District Hyderabad -500032
Tel: 040-67162222, Fax: 040-23001153
e-mail: einward.ris@karvy.com
Toll Free No: 1800-3454-001
Website: karvycomputershare.com
II. Principal Business Activities of the Company

All the business activities contributing 10% or more of the total turnover:
Sl. Name and Description of NIC Code of the % to total turnover
No. main products / services Product / Service of the company
1 Manufacture of Cement 23941 100
III. Particulars of Holding, Subsidiary and Associate Companies

S. Name and Address CIN/GLN Holding/ % of Applicable
No of the Company Subsidiary/ Shares held Section
Associate
01 Sagar Cements (R) Limited U40300KA2007PLC043746 Subsidiary 100% 2(87)
(Formerly known as
BMM Cements Ltd.)
19/13, Old # 19/5, 19/6,
3rd Floor, Western Side,
Kareem Towers,
SRT Road, (Cunningham Road),
Bengaluru – 560052, Karnataka

28
Sagar Cements Limited - Annual Report 2017-18 IV. SHARE HOLDING PATTERN (Equity Share Capital Break up as percentage of Total Equity)
(i) Category-wise Shareholding
No. of shares held at the No. of shares at the % of
beginning of the year end of the year change
Category of Shareholder Demat Physical Total % of Demat Physical Total % of during
total total the year
shares shares
(A) Shareholding of Promoter and Promoter Group2
1 Indian
(a) Individuals/ Hindu Undivided Family 9003118 0 9003118 44.13 9001866 0 9001866 44.13 0
(b) Central Government/ State Government(s)
(c) Bodies Corporate 1204785 0 1204785 5.91 1204785 0 1204785 5.91 0
(d) Financial Institutions/ Banks
(e) Any Others(Specify)
Sub Total(A)(1) 10207903 0 10207903 50.04 10206651 0 10206651 50.04 0
2 Foreign
(a) Individuals (Non-Resident Individuals/
Foreign Individuals)
(b) Bodies Corporate
(c) Institutions
(d) Qualified Foreign Investor
(e) Any Others(Specify)
Sub Total(A)(2)
Total Shareholding of Promoter and Promoter 10207903 0 10207903 50.05 10206651 0 10206651 50.04 -0.01
Group (A)= (A)(1)+(A)(2)
(B) Public shareholding
1 Institutions
(a) Mutual Funds 2776263 1600 2777863 13.62 2598532 1400 2599932 12.74 -0.88
(b) Financial Institutions / Banks 3950 567 4517 0.02 3735 3850 7585 0.04 0.02
(c) Central Government / State Government(s)
(d) Venture Capital Funds
(e) Insurance Companies 300741 0 300741 1.47 320741 0 320741 1.57 0.10
(f) Foreign Institutional Investors / FPIs 779559 0 779559 3.82 728893 0 728893 3.57 -0.25
(g) Foreign Venture Capital Funds
IV. SHARE HOLDING PATTERN (Equity Share Capital Break up as percentage of Total Equity)
(i) Category-wise Shareholding
No. of shares held at the No. of shares at the
beginning of the year end of the year % of
Category of Shareholder Demat Physical Total % of Demat Physical Total % of during
total total the year
shares shares
(h) Qualified Foreign Investors
(i) Any Other (specify) (Trust)
Sub-Total (B)(1) 3860513 2167 3862680 18.93 3651901 5250 3657151 17.92 -1.01
2 Non-institutions
(a) Bodies Corporate
i. Indian 4651379 5076 4656455 22.83 4718380 3101 4721481 23.14 0.31
ii. Overseas
(b) Individuals
i. Individual shareholders holding 905086 460143 1365229 6.69 980594 290403 1270997 6.23 -0.46
nominal share capital up to ` 1 lakh
ii. Individual shareholders holding nominal 214120 0 214120 1.05 285735 0 285735 1.40 0.35
share capital in excess of ` 1 lakh.
(c) NRIs
(c-i) Foreign Corporate Body
Sagar Cements Limited - Annual Report 2017-18
(c-ii) Hindu Undivided Families 0 0 0 0.00 0 0 0 0.00 0.00

(c-iii) Clearing Members 11982 0 11982 0.06 3563 0 3563 0.02 -0.04
(c-iv) NBFCs Registered with RBI 648 0 648 0.00 9260 0 9260 0.05 0.05
(c-v) NRIs 80983 0 80983 0.39 91328 0 91328 0.45 0.06
(c-vi) Trusts 0 0 0 0.00 4500 0 4500 0.02 0.02
(c-vii) IEPF 0 0 0 0.00 149334 0 149334 0.73 0.73
Sub-Total (B)(2) 5864198 465219 6329417 31.02 6242694 293504 6536198 32.04 1.02
(B) Total Public Shareholding (B)= 9724711 465786 10192097 49.95 9894595 298754 10193349 49.96 0.01
(B)(1)+(B)(2)
TOTAL (A)+(B) 19932614 465786 20400000 100.00 20101246 298754 20400000 100.00
(C) Shares held by Custodians for 0 0 0 0.00 0 0 0 0 0.00
GDRs & ADRs
GRAND TOTAL (A)+(B)+(C) 19934214 465786 20400000 100.00 20101246 298754 20400000 100.00
29
(ii) Shareholding of promoters
Shareholding at the Shareholding at the %
beginning of the year end of the year change
(01-04-2017) (31-03-2018) in
Sl. No. of % of % of No. of % of % of share
No. Shadeholder’s name Shares total Shares Shares total Shares holding
shares pledged / shares pledged/ during
of the encum- of the encum- the year
company bered company bered
to total to total
shares shares
1 S VEERA REDDY 1643795 8.06 Nil 1643795 8.06 Nil
2 S ARUNA 1369545 6.71 Nil 1369545 6.71 Nil
3 S RACHANA 1164280 5.71 Nil 1164280 5.71 Nil
4 S ANAND REDDY 1304776 6.40 Nil 1303524 6.39 Nil -0.01
5 SREEKANTH REDDY SAMMIDI 1238753 6.07 Nil 1238753 6.07 Nil
6 S VANAJATHA 990769 4.86 Nil 990769 4.86 Nil
7 W MALATHI 755400 3.70 Nil 755400 3.70 Nil
8 N MADHAVI 533800 2.62 Nil 533800 2.62 Nil
9 P V NARSIMHA REDDY 2000 0.01 Nil 2000 0.01 Nil
10 ANDHRA PRADESH INDUSTRIAL 313285 1.54 Nil 313285 1.54 Nil
DEVELOPMENT CORPORATION LTD
11 PANCHAVATI POLYFIBRES LTD 31500 0.15 Nil 31500 0.15 Nil
12 SAGAR PRIYA HOUSING & 860000 4.22 Nil 860000 4.22 Nil
INDUSTRIAL ENTERPRISES LTD
TOTAL 10207903 50.05 Nil 10206651 50.04 Nil -0.01
(iii) Change in Promoters’ Shareholding
Shareholding at the beginning Cumulative Shareholding
Sl. of the year during the year
Description
No. No. of shares % of the No. of shares % of the
total shares total shares
of the Company of the Company
At the beginning of the year 10207903 50.05 10207903 50.05
Acquired during the year
Acquired *
Sold * 1252 -0.01 1252 -0.01
At the end of the year 10206651 50.04 10206651 50.04
* Shares of the Company are traded on a daily basis and hence the date wise increase or decrease in the
shareholding is not furnished.

(iv) Shareholding Pattern of top ten Shareholders (other than Directors, Promoters and Holders of GDRs and ADRs.
Shareholding at the beginning Shareholding at the end
Sl. of the year 01-04-2017 * of the year 31-03-2018 **
No. Top 10 Shareholders No. of % of the No. of % of the
shares total shares shares total shares
of the Company of the Company
1 AVH RESOURCES INDIA PRIVATE LTD. 3583704 17.57 3583704 17.57
2 HDFC TRUSTEE COMPANY LTD. - 920000 4.51 1416000 6.94
HDFC PRUDENCE FUND
3 SBI MAGNUM COMMA FUND/ 918729 4.50 173919 0.85
SBI INFRASTRUCTURE FUND
4 TWINVEST FINANCIAL SERVICES LTD. 813327 3.99 813327 3.99
5 ICICI PRUDENTIAL FUND 560000 2.75 79139 0.39
6 KOTAK MAHINDRA (INTERNATIONAL) 375000 1.84 0 0.00
LTD.
7 KITARA INDIA MICRO CAP 0 0.00 375000 1.84
GROWTH FUND
8 ICG Q LIMITED 330000 1.62 330000 1.62
9 IDFC CLASSIC EQUITY FUND 305235 1.50 894584 4.39
10 BAJAJ ALLIANZ LIFE INSURANCE 300741 1.47 320741 1.57
COMPANY LTD.
11 VANAJA SUNDAR IYER 160000 0.78 200000 0.98
12 IEPF 0 0.00 149334 0.73
* In the list of top 10 as on 1-4-2017;
** In the list of top 10 as on 31-03-2018
Note: As the shares of the Company are traded on a daily basis, the date wise increase or decrease in the
shareholding is not furnished.
(v) Shareholding of Directors and Key Managerial Personnel
Shareholding Shareholding
at the beginning at the end
of the year of the year
01-04-2017 31-03-2018
Sl. For each of the Directors Date Reason No. of % of No. of % of
No. and KMP Shares total Shares total
shares shares
of the of the
Com- Com-
pany pany
Directors
1 Shri O.Swaminatha Reddy 01/04/2017 At the beginning of the year Nil Nil
31/03/2018 At the end of the year Nil Nil
2 Shri S.Veera Reddy 01/04/2017 At the beginning of the year 1643795 8.06
31/03/2018 At the end of the year 1643795 8.06
3 S Rachana 01/04/2017 At the beginning of the year 1164280 5.71
4 S Anand Reddy 01/04/2017 At the beginning of the year 1304776 6.40

5 Sreekanth Reddy Sammidi 01/04/2017 At the beginning of the year 1238753 6.07
6 Shri K.Thanu Pillai 01/04/2017 At the beginning of the year Nil Nil
7 Shri V.H.Ramakrishnan 01/04/2017 At the beginning of the year Nil Nil
8 Shri John-Eric Fernand 01/04/2017 At the beginning of the year Nil Nil
Pascal Cesar Bertrand 31/03/2018 At the end of the year Nil Nil
9 Shri T.Nagesh Reddy 01/04/2017 At the beginning of the year Nil Nil
Key Managerial Personnel
1 Shri R.Soundararajan, 01/04/2017 At the beginning of the year 10 0
Company Secretary 31/03/2018 At the end of the year 10 0
2 Shri K.Prasad, 01/04/2017 At the beginning of the year Nil Nil
Chief Financial Officer 31/03/2018 At the end of the year Nil Nil
V. INDEBTEDNESS
Indebtedness of the company including interest outstanding / accrued but not due for payment (` in lakhs)
Secured Loans Unsecured Total
Particulars excluding Loans Deposits Indebtedness
deposits (Note1) (Note2)
1 Indebtedness at the beginning of the year

i Principal Amount 23,276.00 - 3,978.59 27,254.59
ii Interest due but not paid - - - -
iii Interest accrued but not due 63.00 - - 63.00
Total (i+ii+iii) 23,339.00 - 3,978.59 27,317.59
Change in the indebtedness during the
financial year
Addition 2,256.00 - 1,952.66 4,208.66
Reduction 3,130.00 - 1,831.70 4,961.70
Net Change (874.00) - 120.96 (753.04)
Indebtedness at the end of the year
i Principal Amount 26,147.00 - 4,270.00 30,417.00
ii Interest due but not paid - - - -
iii Interest accrued but not due 98.00 - - 98.00
Total (i+ii+iii) 26,245.00 - 4,270.00 30,515.00
Note: 1. These liability represents obligations under finance lease including current portion of obligations.
2. These are deposits received from vendors for contracts to be executed.

VI. Remuneration of Directors and Key Managerial Personnel
A. Remuneration to Managing Director, Whole-time Directors and/or Manager (in `)
Sl. Name of MD/WTD/Manager Total

No. Particulars of Remuneration Shri S.Veera Dr.S.Anand Shri S.Sreekanth Amount
Reddy (M.D) Reddy (J.M.D) Reddy (E.D)
1 Gross Salary
(a) Salary as per provisions contained in
Section 17 (1) of the Income-Tax 1,68,00,000 1,26,00,000 1,05,00,000 3,99,00,000
Act, 1961
(b) Value of perquisites u/s.17 (2) of - - - -
Income-Tax Act, 1961
(c) Profits in lieu of salary under Section - - - -
17 (3) of Income-Tax Act, 1961
2 Stock Option - - - -
3 Sweat Equity - - - -
4 Commission 1,00,00,000 1,00,00,000 1,00,00,000 3,00,00,000
- as % of profit 1.35 1.35 1.35 4.05
- Others, specify (arrears relating to - - - -
previous year)
5 Total (A) 2,68,00,000 2,26,00,000 2,05,00,000 6,99,00,000
Ceiling as per the Act 7,38,22,885
B. Remuneration to other Directors (in `)

Sl. Name of the Director Total
No. Particulars of Shri O. Shri K. Thanu Shri.V.H. Amount
Remuneration Swaminatha Pillai Ramakrishnan
Reddy
1 Independent directors
- Fee for attending board/ 2,80,000 3,00,000 2,40,000 8,20,000
committee meetings
Total (1) 2,80,000 3,00,000 2,40,000 8,20,000
Name of the Director Shri Van Total
Shri T.Nagesh Shri John Eric Smt.S. Nieuwenborgh Amount
Reddy Fernanad Rachana Jens
2 Other Non-Executive Directors (APIDC’s Pascal Cesar (Alternate
Nominee) * Bertrand Director to
Shri John Eric
Fernanad
Pascal Cesar
Bertrand
- Fee for attending board/ 1,20,000 40,000 1,20,000 20,000 3,00,000
committee meetings
Total (2) 1,20,000 40,000 1,20,000 20,000 3,00,000
Total (B) = (1+2‘) 11,20,000
Total Managerial
Remuneration (A + B) 7,10,20,000
Overall Ceiling as per the Act 8,12,05,173
* Sitting Fee paid to the Institution, he represents viz., APIDC directly.

C. Remuneration to Key Managerial Personnel other than MD / Manager / WTD (in `)
Sl. Key Managerial Personnel Total
Particulars of Remuneration Amount
No. Shri R Soundararajan Shri K.Prasad
1 Gross Salary
a. Salary as per provisions contained
in Section 17 (1) of the Income-Tax Act, 1961 27,51,769 34,64,596 62,16,365
b. Value of perquisites u/s.17 (2) of
Income-Tax Act, 1961
c. Profits in lieu of salary under Section 17 (3)
of Income-Tax Act, 1961
2 Stock Option
3 Sweat Equity
4 Commission
- As % of profit
- Others, specify
5 Others, Allowances
Total 27,51,769 34,64,596 62,16,365
VII. PENALTIES / PUNISHMENT / COMPOUNDING OF OFFENCES

There were no penalties, punishment or compounding of offences during the year ended March 31, 2018.
Annexure - 6
Particulars of employees as required under Section 197 of the Companies Act read with Rule 5 of the Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014
Name of the Employee Shri S.Veera Reddy Dr.S.Anand Reddy Shri S.Sreekanth Reddy
Designation Managing Director Joint Managing Director Executive Director
Age 82 years 54 years 46 years
Remuneration received (` ) 1,68,00,000 1,26,00,000 1,05,00,000
Commission received (` ) 1,00,00,000 1,00,00,000 1,00,00,000
Nature of employment Contractual Contractual Contractual
Nature of duties General Management General Management General Management
Qualification - M.B.B.S. B.E. (I & P)
P.G. Dip. in
Cement Technology
Experience (Years) 57 25 22
Date of Commencement 13.07.1991 21.11.1992 26.6.2003
of Employment
Last Employment held Nil Nil Nil
Shri S.Veera Reddy, Dr.S.Anand Reddy and Shri S.Sreekanth Reddy are related to each other.

Annexure 7
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION & FOREIGN EXCHANGE EARNINGS AND OUTGO
The information required under Section 134 (3)(m) of the Companies Act, 2013, read with Rule 8 of the Companies
(Accounts) Rules, 2014 is given below:
Conservation of Energy and Technology Absorption
Your company attaches utmost importance to conservation of energy by adopting innovative measures through usage of
eco-friendly and cheaper fuels, reducing wastage and optimizing the consumption of energy. Some of the specific measures
undertaken in this direction are listed below.
1. Coal Mill and Cement Mill filter bags have been replaced with Membrane bags to reduce emission levels from 50
mgm/nm3 to 30 mgm/nm3.
Optimization of Plant Capacity
Company has taken up Plant optimization program to enhance the production capacity and reduce the Power and Fuel
Consumption.
The following initiatives have been taken.
1. Optimization of Cement Production.
2. Completion of enhancement in the capacity of Grinding Unit at Bayyavaram Village, Anakapally, Visakhapatnam
from 0.30 million tons to 1.5 million tons.
3. Commissioning of 6 MW WHR Power Plant.
4. Commissioning of 1.25 MW Solar Power Plant.
5. Setting-up of 18 MW Coal Based Power Plant (under implementation).
6. Acquisition of 8.3 MW Hydel Power Plants.
Research and Development
Your Company Collaborates with National Council for Cement Building & Materials for Research and Development
activities and appointed CII for Plant Energy Audit.
Foreign Exchange earnings and Outgo
Details of foreign exchange earnings and outgo as per the Companies Act, 2013, are given below.
(` in Lakhs)
For the year ended For the year ended
S.No Particulars
31st March, 2018 31st March, 2017
1 Outgo 1720.19 167.52
2 Inflow Nil Nil

Corporate Governance Report for the year 2017-18
1. Company’s philosophy on code of governance:
Sagar Cements believes that adherence to good corporate practice leads to transparency in its operations and
improvement in the quality of its relationship with all its stakeholders.
The Company is in compliance with the requirements applicable under SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015 (SEBI Listing Regulations) with regard to corporate governance.
2. Board of Directors:
Composition:
The Board of Directors has an optimum combination of Executive and Non-Executive Directors and its composition
is in conformity with Regulation 17 of the SEBI Listing Regulations read with Section 149 of the Companies Act 2013
(“Act”). All the Directors have made the requisite disclosures regarding directorships and Committee positions held
by them in other Companies.
i. As on March 31, 2018, the Company had nine Directors on its Board. Of the said nine Directors, six are Non-
Executive Directors, which include three Independent Directors.
Following was the composition of directors as on March 31, 2018.
Sl No. Name of the Director Category of Directorship

1 Shri O.Swaminatha Reddy, Chairman Independent and Non-Executive
2 Shri S.Veera Reddy, Managing Director Executive - Promoter Group and Non-Independent
3 Dr.S.Anand Reddy, Joint Managing Director Executive - Promoter Group and Non-Independent
4 Shri S.Sreekanth Reddy, Executive Director Executive - Promoter Group and Non-Independent
5 Mrs.S.Rachana, Director Non-Executive – Promoter Group and Non-Independent
6 Shri K.Thanu Pillai Independent and Non-Executive
7 Shri V.H.Ramakrishnan Independent and Non-Executive
8 Shri John-Eric Fernand Pascal Cesar Bertrand Non-Executive and Non-Independent
9 Shri T.Nagesh Reddy Non-Executive-Nominee Director of APIDC,
(Equity Investor)
ii. None of the Directors on the Board holds directorships in more than ten public companies. Further, as on 31 st
March, 2018, none of them was a member of more than ten committees or chairman of more than five committees
across all the public companies in which he/she was a Director. Necessary disclosures regarding Committee
positions in other public companies as on March 31, 2018 have been made by the Directors. Following directors
are related inter-se:
Dr.S.Anand Reddy and Shri S.Sreekanth Reddy are the sons of Shri S.Veera Reddy and Smt.S.Rachana is wife of
Shri S.Sreekanth Reddy.
iii. All the Independent Directors are non-executive directors in accordance with Regulation 16(1)(b) of the SEBI
Listing Regulations read with Section 149(6) of the Act. The current tenure of all the independent directors is for
5 years. All the Independent Directors have confirmed that they meet with the criteria as mentioned under
Regulation 16(1)(b) of the SEBI Listing Regulations read with Section 149(6) of the Act.
iv. The names and categories of the Directors on the Board, their attendance at the Board Meetings held during the
year and the number of Directorships and Committee Chairmanships / Memberships held by them in other
public companies as on March 31, 2018 are given hereunder. Other directorships do not include their other
directorships if any in private limited companies, foreign companies and companies under Section 8 of the Act.
Chairmanships / Memberships of Audit Committee and Stakeholders’ Relationship Committee are alone
considered for the purpose.

Name of the Category Number of board Whether Number of Number of
Director meetings during attended Directorships Committee positions
the year 2017-18 last AGM in other Public held in other
held on Companies Public Companies
Held Attended 22.9.2017 Chairman Director Chairman Member
Shri O.Swaminatha Independent 6 6 Yes 2 5 4 2
Reddy and
Non-Executive,
Chairman
Shri S.Veera Reddy Managing 6 2 No - 5 1 -
Director,
Promoter
Dr.S.Anand Reddy Joint Managing 6 6 Yes - 4 - -
Director,
Promoter
Shri S.Sreekanth Executive 6 6 Yes 1 3 - -
Reddy Director,
Promoter
Mrs. S.Rachana Non-Executive, 6 5 Yes - 1 - -
Promoter
Shri K.Thanu Pillai Independent 6 6 Yes - 7 - 1
and
Non-Executive,
Director
Shri V.H. Independent 6 6 Yes - 2 - 3
Ramakrishnan and
Non-Executive,
Director
Shri T.Nagesh Nominee 6 6 Yes ‘ - - -
Reddy Director of
APIDC,
(Equity Investor)
Shri John-Eric Non-Executive 6 3 Yes - - - -
Fernand Pascal
Cesar Bertrand
Van Nieuwenborgh Alternate 2 2 - - - - -
Jens(From 29.5.17 Director to
to 22.9.17) Shri John-Eric
Fernand Pascal
Cesar Bertrand
v. Board met six times during the year and the gap between their two consecutive meetings did not exceed one
hundred and twenty days. The dates of the above meetings were:
29.05.2017, 27.07.2017, 22.09.2017, 26.10.2017, 24.01.2018 and 26.02.2018.
vi. Information applicable and falling under Part A of the Schedule II of SEBI Listing Regulations, were placed
before the Board for its consideration.
vii. The terms and conditions of appointment of the Independent Directors are available on the website of the
Company.
viii. During the year, the Independent Directors held their separate meeting on 24.01.2018.
ix. The Board periodically reviews the reports furnished to it by the company on compliance with laws applicable
to the Company.

x. The details of the familiarization programme of the Independent Directors are available on the website of the
Company (www.sagarcements.in).
xi. Details of equity shares of the Company held by the Directors as on March 31, 2018 are given below:
Name Category Number of equity shares
Shri S.Veera Reddy Managing Director – Promoter 16,43,795
Dr.S.Anand Reddy Joint Managing Director - Promoter 13,03,524
Shri S.Sreekanth Reddy Executive Director - Promoter 12,38,753
Mrs.S.Rachana Non-Executive, Promoter 11,64,280
The Company has not issued any convertible instruments. None of the Non-Executive Directors other than the
one mentioned above was holding any shares in the company as on 31st March, 2018.
3. Audit Committee:
i. The composition of the audit committee of the Board is in line with the provisions of Regulation 18 of SEBI
Listing Regulations, read with Section 177 of the Act.
ii. The terms of reference of the audit committee is as per Part C of the Schedule II of the SEBI Listing Regulations
and include:
l Oversight of the Company’s financial reporting process and the disclosure of its financial information to
ensure that the nancial statement is correct, sufficient and credible;
l Recommendation for appointment, remuneration and terms of appointment of auditors of the Company;
l Approval of payment to statutory auditors for any other services rendered by them;
l Reviewing, with the management, the annual financial statements and auditors’ report thereon before
submission to the board for approval, with particular reference to:
v Matters required to be included in the Directors' Responsibility Statement for inclusion in the Board’s
report in terms of clause (c) of sub-section 3 of section 134 of the Act.
v Changes, if any, in the accounting policies and practices and reasons for the same.
v Major accounting entries involving estimates based on the exercise of judgment by management.
v Significant adjustments made in the financial statements arising out of audit findings.
v Compliance with listing and other legal requirements relating to financial statements.
v Disclosure of related party transactions
v Qualifications in the draft audit report.
• Reviewing with the management, the quarterly financial statements before submission to the board for
approval;
• Reviewing and monitoring the auditors’ independence and performance, and effectiveness of audit process;
• Approval or any subsequent modications of transactions with related parties;
• Scrutiny of inter-corporate loans and investments;
• Examination of the financial statement and the auditors’ report thereon;
• Evaluation of internal financial controls;
• Establishment of vigil mechanism for directors and employees to report genuine concerns.
• Calling for the comments of the auditors about internal control systems, the scope of audit, including the
observations of the auditors and review of financial statement before their submission to the Board and
discussions on any related issues with the internal and statutory auditors and the management of the
Company;
• Review of the information required as per SEBI Listing Regulations.

iii. The audit committee invites to its meetings such of the executives, as it considers appropriate (particularly the
head of the finance function). Representatives of the statutory auditors and internal auditors are also present at
such meetings. The Company Secretary acts as the Secretary to the Committee.
iv. Shri R.Soundararajan, Company Secretary, has been appointed as the Compliance Officer by the Board to
ensure compliance and effective implementation of the Insider Trading Code.
v. The previous Annual General Meeting (“AGM”) of the Company was held on September 22, 2017 and the
Chairman of the audit committee was present at the said meeting.
vi. The composition of the Audit Committee as on 31st March, 2018 and the details of attendance at its meetings
during the year 2017-18 are given below:
Number of meetings during the
Name Category financial year 2017-18
Held Attended
Shri O.Swaminatha Reddy Independent and Non-Executive Director 5 5
Chairman
Shri K.Thanu Pillai Independent and Non-Executive Director 5 5
Shri V.H.Ramakrishnan Independent and Non-Executive Director 5 5
vii. Audit committee met 5 times during the year 2017-18 and the dates of such meeting are:
29.05.2017, 27.07.2017, 26.10.2017, 24.01.2018 and 26.02.2018.
4. Nomination and Remuneration Committee:
i. Composition of the nomination and remuneration committee of the Board is in line with the Regulation 19 of
SEBI Listing Regulations, read with Section 178 of the Act.
ii. The terms of reference of the nomination and remuneration committee are available on the company’s website
www.sagarcements.in.
Nomination and Remuneration policy:
The Committee has adopted a Policy for Nomination and Remuneration, which is aimed at attracting, retaining,
developing and motivating workforce. Individual performance is assessed and rewarded through annual appraisal
process.
Details of such a policy are available on the company’s web site, www.sagarcements.in.
iii. Following was the composition of the Nomination and Remuneration Committee as on 31 st March, 2018:
Name Category
Shri K.Thanu Pillai, Chairman Independent and Non-Executive
Shri O.Swaminatha Reddy Independent and Non-Executive
Smt S.Rachana Non-Executive
The Committee did not hold any meetings during the year 2017-18.
iv. The Company presently does not have any Employee Stock Option Scheme.
v. Performance Evaluation Criteria / Policy for Directors:
The company has adopted a Policy for evaluating the performance of its management personnel, which is
available on the company’s web site.

5. Remuneration of Directors
Remuneration to Non-Executive Directors:
Non-Executive Directors are not paid any remuneration other than the sitting fee of ` 20,000/- for each meeting of
the Board and Committees thereof attended by them.
Sitting fees payable to the nominee directors are paid directly to the institutions they represent. Details of sitting fees
paid to the non-executive directors during the year 2017-18 are given below:
Sl.No. Name of the Director ` in Lakhs)
Sitting Fee (`
1 Shri O.Swaminatha Reddy 2.80
2 Shri K.Thanu Pillai 3.00
3 Shri.V.H.Ramakrishnan 2.40
4 Shri T.Nagesh Reddy (APIDC Nominee) 1.20
5 Shri John-Eric Fernand Pascal Cesar Bertrand 0.40
6 Smt.S.Rachana 1.20
7 Shri Van Nieuwenborgh Jens 0.20
Total 11.20
Remuneration to the Managing Director and other Whole time Directors:
The Company pays remuneration to its Managing Director and other Whole time Directors by way of salary and
perquisites, which are fixed components and by way of commission, a variable component. Remuneration is paid in
accordance with the recommendation made by the Nomination and Remuneration Committee and approved by the
Board of Directors which is subject to further approval of the shareholders and Central Government, wherever
required.
The whole-time directors were entitled to the following remuneration for the year 2017-18. (` in Lakhs)
Description Shri S.Veera Reddy Dr.S.Anand Reddy Shri S.Sreekanth Reddy
Salary and Perks 168.00 126.00 105.00
Commission 100.00 100.00 100.00
Total 268.00 226.00 205.00
In addition to the above, the Managing/Whole-time directors are entitled to contribution to P.F., Superannuation
Fund or Annuity to the extent these are not taxable, gratuity at a rate not exceeding half a month’s salary for each
completed year of service and encashment of leave at the end of their tenure.
Services of the Managing Director / Whole-time Director with the company may be terminated by either party,
giving the other party six months’ notice.
6. Stakeholders’ Relationship Committee
i. The stakeholders’ relationship committee was in line with the provisions of Regulation 20 of SEBI Listing
Regulations read with Section 178 of the Act as applicable on 31.03.2018.
ii. The broad terms of reference of the stakeholders’ relationship committee are as under:
• Consider and resolve the grievances of security holders of the Company including redressal of investor
complaints such as transfer or credit of securities, non-receipt of dividend/notice/ annual reports, etc. and
all other securities-holders related matters.
• Consider and approve issue of share certicates (including issue of renewed or duplicate share certicates),
transfer and transmission of securities, etc.

iii. Composition of the Stakeholders’ Relationship Committee:
The Stakeholders Relationship Committee of the Board constituted in accordance with SEBI Listing Regulations
then applicable, had the following directors as its members as on 31st March, 2018:
Name Category
Shri T.Nagesh Reddy, Chairman Non-Executive
Dr.S.Anand Reddy, Member Executive
Shri R.Soundararajan, Company Secretary, is the compliance officer for the above purpose. Based on the
information obtained from the Company’s Registrars, the Company had received 41 complaints from the investors
during the year 2017-18 and all these complaints, being routine in nature, were redressed in the normal course
by the Registrars themselves. There were no complaints pending as on 31st March, 2018. In view of these and
also of the fact that all requests for transfer of shares held in physical forms were swiftly approved by the officials
of the Company in terms of the authorization given to them by the Board, the need for physically convening a
meeting of the Committee was not felt during the year 2017-18.
iv. Name, designation and address of Compliance Officer:
Shri R.Soundararajan
Company Secretary
Sagar Cements Limited
Regd.Office: Plot No.111, Road No.10
Jubilee Hills, Hyderabad-500 033
Telephone: 91 40 23351571 Fax: 91 40 23356573
Other Committees
Investment Committee
With a view to evaluating major capital expenditure proposals and investment opportunities available to the
Company from time to time, the Board has constituted an Investment Committee with the following directors as
its members:
Shri O.Swaminatha Reddy Chairman
Shri S.Veera Reddy Member
Shri K.Thanu Pillai Member
Meetings held:
The Investment Committee met 2 times during the year and the dates of such meetings are:
24.01.2018 and 26.02.2018.
Securities Allotment Committee
With a view to allot securities as and when approved by the Board/Shareholders, the company has constituted
a committee known as Security Allotment Committee with the following Independent Directors as its members:
Shri O.Swaminatha Reddy Chairman
Shri K.Thanu Pillai Member
Shri.V.H.Ramakrishnan Member
The need for convening a meeting of the Committee was not felt during the year 2017-18.
Corporate Social Responsibility Committee
CSR Committee of the Company has been constituted in line with the provisions of Section 135 of the Act.

The company is committed to operate and grow its business in a socially responsible way, while reducing the
environmental impact of its operations and increasing its positive social impact. It aims to achieve growth in a
responsible way by encouraging people to take small every day actions that will make a big difference. This SCL
CSR Policy is guided by the following principles:
1. To conduct its operations with integrity and responsibility keeping in view the interest of all its stakeholders.
2. It believes that growth and environment should go in hand and hand.
3. It looks forward to collaborate with different stakeholders including Governments, NGOs, Suppliers and
Distributors to tackle the challenges faced by the society.
During the year, one meeting of the CSR Committee was held on 24.01.2018.
The composition of the CSR Committee and details of the meeting attended by its members are given below:
Number of meetings during the
Name Category financial year 2017-18
Held Attended
Shri K.Thanu Pillai (Chairman) Independent, Non-Executive 1 1
Dr.S.Anand Reddy Executive, Promoter Group and 1 1
Non-independent
Shri S.Sreekanth Reddy Executive, Promoter Group and 1 1
Non-independent
Mrs.S.Rachana Non-Executive, Promoter Group and 1 1
Non-independent
7. General Body Meetings:

i. General Meeting
The details of the time, venue and the date of the last three Annual General Meetings of the Company are given
below:
AGM Date Time Venue
36th AGM 22nd September, 2017 4.00. p.m.
Hotel Golkonda, Masab Tank,
35th AGM 28th September, 2016 4.00. p.m.
Hyderabad - 500028
34th AGM 23rd September, 2015 4.00. p.m.
Details of Special Resolutions passed in the above said Annual General Meetings are given below:
No Special Resolutions were passed at the 36th Annual General Meeting.
At the 35th AGM, three special resolutions approving the reappointment and payment of Remuneration to
Shri.S.Veera Reddy, Dr.S.Anand Reddy and Shri S.Sreekanth Reddy as Managing Director, Joint Managing Director
and Executive director, respectively were passed.
At the 34th AGM, three special resolutions, one to modify the terms of payment of remuneration to Shri S.Veera
Reddy, Managing Director and one for alteration of Memorandum and one for altering the Articles of Association
of the company, to bring these documents in line with Companies Act, 2013 were passed.
Details of Special Resolutions passed through Postal Ballot: Nil
Other than the above said resolutions, the company did not pass any resolution exclusively through Postal
Ballot in the year 2017-18. However, in order to enable its Members, who did not have the access to e-voting
facility to enable them to send their assent or dissent in writing in respect of resolutions as set out in the Notice,
the company forwarded Ballot Forms along with the Notice of all the general meetings referred to above.
M/s.BSS & Associates, Practicing Company Secretaries conducted ballot exercise in connection with all the
above said resolutions.

There is presently no proposal to pass any special resolution exclusively through postal ballot. However, the
company is forwarding the ballot forms along with the Notice of the Annual General Meeting in order to enable
its members, who do not have access to e-voting facility, to send their assent or dissent in writing in respect of
resolutions proposed to be passed in the AGM.
8. Means of communication
Quarterly results:
As part of compliance with Regulation 33, 10 and 47 of the SEBI Regulations, the Company furnishes its quarterly
financial results to the Stock Exchanges where its shares have been listed, followed by publication in the newspapers
in accordance with the said Regulations.
Newspapers in which the results were published:
Details of newspapers in which quarterly results relating to the Financial Year 2017-18 were published are given
below:
Name of the newspapers
Quarter ended Date of Publication carrying the publication
30th June, 2017 29.07.2017 Financial Express and Andhra Praha
30th September, 2017 27.10.2017 “
31st December, 2017 25.01.2018 “
31st March, 2018 31.05.2018 “
Website where displayed:

The Financial Results and Shareholding pattern of the Company are available on the Company’s website
‘www.sagarcements.in’ and also on the website of NSE and BSE as part of corporate filing made by the Company
from time to time with the said stock exchanges.
Press Release
Press Releases as and when issued by the company in respect of financial results are also made available on the
company’s website.
Presentation made to Institutional Investors and Financial Analysts:
Excepting the occasions when the Company had to respond in a general way to the queries now and then received
from investors / analysts regarding the affairs of the company, there were no specific presentations made to any of
them during the year 2017-18. Copies of the press-release, as and when issued by the Company, mostly after
submission of financial results to the Stock Exchanges, are simultaneously made available to the Stock Exchanges
and the transcription of conference call held with the analysts / investors following the declaration of financial results
are furnished to the stock exchanges and place on the company’s website.
Management Discussion and Analysis Report
The Annual Report of the Company contains the Management Discussion and Analysis as part of the Directors’
Report.
Subsidiary companies
The Company has a wholly owned subsidiary, Sagar Cements (R) Limited (Formerly known as BMM Cements Limited).
The audit committee reviews the consolidated financial statements of the Company and also the financial statements
of the said subsidiary. The minutes of the board meetings along with its subsidiary, are periodically placed before the
Board of Directors of the Company. Shri O.Swaminatha Reddy, Shri.K.Thanu Pillai and Shri.V.H.Ramakrishnan,
who are independent directors of the company are also on the Board of the said subsidiary.

9. General Shareholder information:
a. Annual General Meeting:
Date & Time : 4.00 p.m. on Thursday, the 27th September, 2018
Venue : Hotel Golkonda, Masab Tank, Hyderabad - 500 028.
b. Financial Year : 1st April to 31st March
c. Book Closure Dates : From 21.09.2018 to 27.09.2018 (both days inclusive)
d. Dividend payment date :
The Board of Directors on October 26, 2017 announced an Interim Dividend of ` 2.50 per equity share (25%)
on the 2,04,00,000 equity shares of ` 10/- each of the company for the year 2017-18 and paid the same on
November 16, 2017.
The Board has since recommended a further dividend @ 15% i.e., ` 1.50 per share, subject to its declaration by
the members at the Annual General Meeting, which will be paid to the shareholders within 30 days of the said
declaration.
e. Listing on Stock Exchanges:
The paid up share capital of the company is ` 20,40,00,000/- consisting of 2,04,00,000 equity shares of ` 10/-
each. All these shares have been listed on the National Stock Exchange of India Ltd. Mumbai and BSE Ltd.
Mumbai. There are no dues against listing fee payable to these stock exchanges.
f. Stock and ISIN Codes for the Company’s shares:
ISIN code and Stock Exchange codes for the Company’s shares:
Name of the Stock Exchange Scrip Code
National Stock Exchange of India Limited, “Exchange Plaza”, 5th Floor, SAGCEM
Bandra – Kurla Complex, Bandra (East), Mumbai – 400 051
BSE Limited, P J Towers, Dalal Street, Mumbai – 400 001 502090
ISIN INE229C01013
g. Market price details:
High, Low and closing prices for the Company’s shares during the Financial Year as traded on the BSE Limited
(BSE) and National Stock Exchange of India Limited (NSE) are given below:
Month BSE NSE
High Low Close High Low Close
April 2017 869.00 760.00 848.35 870.00 755.00 847.60
May 2017 940.00 791.00 852.15 942.15 783.00 850.75
June 2017 889.85 776.00 816.45 887.95 775.05 820.60
July 2017 888.85 785.00 839.30 878.80 792.00 841.45
August 2017 862.00 773.00 853.80 864.90 766.00 850.40
September 2017 858.00 800.55 830.70 860.00 800.00 820.50
October 2017 895.45 811.00 853.90 890.00 805.25 859.00
November 2017 885.60 800.05 872.15 885.05 807.00 872.10
December 2017 894.75 800.10 848.40 889.75 796.55 842.30
January 2018 1161.40 850.00 992.30 1175.50 846.45 996.40
February 2018 1035.00 816.70 980.00 1037.00 833.40 975.95
March 2018 985.00 850.00 924.55 988.80 845.65 923.00

Sagar Cements Share Price movements during the year 2017-18 as compared with SENSEX and NIFTY, are depicted
below:
Dividend History
* Subject to approval of the shareholders at the ensuing AGM

h. Disclosure with respect to unclaimed shares:
a Aggregate number of shareholders and the 8 shareholders in aggregate
shares remaining unclaimed at the beginning of the year holding 2815 shares
b Number of shareholders who approached claiming shares against the above Nil
c Number of shareholders to whom shares were transferred against (a) above Nil
d Aggregate number of shareholders and the 8 shareholders in aggregate
shares remaining at the end of the year holding 2815 shares
The voting rights on the unclaimed shares outstanding as on March 31, 2018 shall remain frozen till the rightful
owners of such shares claim the shares concerned.
i. Transfer of unclaimed / unpaid dividend amounts to the Investor Education and Protection Fund (“IEPF”):
The un-claimed dividends for the financial year ended 31st March 1996 onwards and up to the financial year
ended 31st March 2010 (Final dividend) were duly transferred to the Investors Education and Protection Fund
set up by the Government of India in accordance with the Companies Act as applicable at the time of such
transfer. Details of the unclaimed dividends are available on the company’s website, www.sagarcements.in.
j. Registrars and Share Transfer Agents:
Karvy Computershare (P) Limited
Karvy Selenium Tower B, Plot 31-32, Financial District,
Nanakramguda, Serilingampally Mandal, Hyderabad -500032
Phone:040-67161500, e-mail: einward.ris@karvy.com
Toll Free No: 1800-3454-001, mailmanager@karvy.com, Website: karvycomputershare.com
k. Share Transfer System:
Around 98.54% of the shares of the Company are held in electronic form. Transfer of these shares is affected
through the depositories with no involvement of the Company.
As regards transfer of shares held in physical form, the transfer documents can be lodged either with the
Company at its Registered Office or with the Company’s Registrars and Share Transfer Agents, whose address
has been given above.
All proposals for transfer of shares held in physical form are scrutinized by the Company’s Share Transfer Agents
and, subject to the same being found to be in order, are approved jointly by the Joint Managing Director and the
Company Secretary, who, for administrative convenience and speedy approvals, have been delegated with the
necessary authority for the purpose by the Board of Directors, who take on record these transfers at their subsequent
meetings. However, the shareholders may kindly note that in accordance with SEBI Notification dt.8.6.2018,
with effect from 5.12.2018, except in case of transmission or transposition of securities, requests for affecting
the transfer of securities (shares) shall not be processed by the Company/Registrar (RTA), if the shares concerned
are held in physical form.
l. Shareholdings particulars as on March 31, 2018
(i) Distribution of shareholdings:
Shareholding range Shares % Holders %
50 and less 1,05,950 0.52 5,950 53.01
51 to 100 3,38,663 1.66 3,516 31.33
101 to 200 1,25,282 0.61 730 6.50
201 to 300 74,375 0.36 274 2.44
301 to 500 1,38,749 0.68 315 2.81
501 to 1000 1,77,521 0.87 222 1.98
1001 to 5000 3,46,876 1.70 163 1.45
5001 to 10000 1,22,421 0.60 17 0.15
10001 to 20000 1,00,948 0.49 8 0.07
20001 to 50000 1,79,174 0.88 6 0.05
50001 to 100000 1,31,521 0.64 2 0.02
More than 100000 1,85,58,520 90.97 21 0.19
Total 2,04,00,000 100.00 11,224 100.00
(ii) Shareholding pattern:
No. of % to in Demat Form
Description holders / Shares Total No. of Shares % to total
held Folios Share Capital held in shares
Demat Form held
Promoter group 12 1,02,06,651 50.04 1,02,06,651 100.00
Domestic Companies 201 47,21,481 23.14 47,18,380 99.93
Mutual Funds 8 25,99,932 12.74 25,98,532 99.95
Public - Individuals 10,604 15,30,692 7.50 12,40,289 81.03
Foreign Portfolio Investors 14 7,28,893 3.57 7,28,893 100.00
Insurance Companies 1 3,20,741 1.57 3,20,741 100.00
Non Resident Indians 205 91,328 0.45 91,328 100.00
Hindu Undivided Families 140 26,040 0.13 26,040 100.00
Clearing Members 27 3,563 0.02 3,563 100.00
Indian financial Institutions 4 4,764 0.02 914 19.19
Non Banking Financial Companies 4 9,260 0.05 9,260 100.00
Banks 2 2,821 0.01 2,821 100.00
Trust 1 4,500 0.02 4,500 100.00
IEPF 1 1,49,334 0.73 1,49,334 100.00
Total 11224 2,04,00,000 100.00 2,01,01,246 98.54
m. Dematerialization of Shares and liquidity:
Trading in the shares of the Company has to be in the electronic form only. The Company has subsisting
agreements with both NSDL and CDSL for the purpose. The ISIN number for the company’s shares is –
INE229C01013. Shares representing more than 98.54% of the share capital were kept in dematerialized form as
on 31 st March, 2018 as detailed below:
In Demat Form
In physical form With NSDL With CDSL Total
Shares % Shares % Shares % Shares %
298754 1.46 1,95,94,562 96.06 5,06,684 2.48 2,04,00,000 100
n. Details of outstanding GDR / ADR / Warrants or any other convertible instruments:
There are no outstanding GDR / ADR / Warrants or any other convertible instruments.
o. Plants Location:
Cement Plants: Hydel Power Units:
1. Mattampally, Via Huzurnagar, 1. Guntur Branch Canal Hydel Project
Nalgonda District, Telangana - 508 204 Tsallagundla Adda Road, Nekarikallu Mandal
Tel: 08683 – 247039 Guntur District, Andhra Pradesh – 522 615
2. Bayyavaram Village, Kasimkota Mandal, 2. Lock-in-Sula Hydel Project
Visakhapatnam District, A.P. - 531031. Banumukkala Village, Banakacherla Regulator
Tel: 08924 – 244098 / 244550 Pamulapadu Mandal, Kurnool District, A.P.- 518 422
p. Address for investors related correspondence:
Company Secretary
Sagar Cements Limited
Registered Office:
Plot No.111, Road No.10, Jubilee Hills, Hyderabad – 500033
Tel. 040 – 23351571, Fax: 040 – 23356573
Email: soundar@sagarcements.in

10. Other disclosures
i. Related Party Transactions:
Full disclosures of related party transactions during the year 2017-18 as per the Ind As 24 issued by the ICAI
have been given under note 34 of the Notes to Financial Statements of the Annual Accounts for the year ended
31st March, 2018. These transactions were entered into by the company in its ordinary course of business and
at arm’s length. There were no materially significant transactions with Directors, their relatives or the Senior
Management or other related entities that may have potential conflict with the interests of the Company at large.
The Register of Contracts containing transactions in which Directors are deemed to be interested, is placed
before each meeting of the Board. All related party transactions had prior approval of the Board’s Audit Committee,
which later reviewed and ratified these transactions.
ii. Statutory compliance, Penalties and Strictures:
There was no instance of non-compliance by the Company on any matter relating to capital market during the
last three years or any penalties imposed or strictures passed on the Company by the Stock Exchanges, SEBI or
other statutory authorities relating to capital market during the said period.
iii. Establishment of Vigil mechanism, Whistle Blower Policy and affirmation
The Company has adopted a ‘Vigil Mechanism’ and ‘Whistle Blower Policy’ and affirms that no personnel has
been denied access to the audit committee. The said policy has been put up on the website of the Company.
iv. Compliance with Mandatory requirements and adoption of Non-Mandatory requirements:
(a) The Company has implemented all the mandatory requirements under SEBI Listing Regulations, as currently
in force.
(b) The audited financial statements of the Company are unqualified.
(c) The Internal Auditors directly report to the Audit Committee, and make presentations on their reports.
(d) The policy on dealing with related party transactions and the policy for determining ‘material’
subsidiaries are available on the company’s website http://www.sagarcements.in/
PolicyonRelatedPartyTransaction.html) and (http://www.sagarcements.in/
PolicyonMaterialSubsidiary.html) respectively.
(e) Reconciliation of Share Capital Audit:
A firm of practicing Company Secretaries carried out a share capital audit to reconcile the total admitted
equity share capital with the National Securities Depositories Limited (NSDL) and the Central Depository
Services (India) Limited (CDSL) and the total issued and listed equity share capital. Their audit report
confirms that the total issued / paid-up capital is in agreement with the aggregate of the total number of
shares in physical form and the total number of dematerialized shares held in demat form with NSDL and
CDSL.
(f) The Company has adopted a Policy on Determination of Materiality for Disclosures and the said policy has
been put up on the website of the Company.
(g) Code of Conduct
The members of the board and senior management personnel have affirmed their compliance during the
year ended March 31, 2018 with the Code applicable to them. The annual report of the Company contains
a certicate by the CEO / Managing Director on the compliance declarations received from Independent
Directors, Non-executive Directors and Senior Management.
11. The company has duly complied with the requirements of the Corporate Governance Report of Sub-paras 2 to 10 of
Part (C) of Schedule V of the SEBI Listing Regulations.
12. The following discretionary requirements have been adopted pursuant to Part E of Schedule II of SEBI Listing
Regulations.
(a) The Company has a separate Chairman and a separate Managing Director.
(b) The Internal Auditors of the company are directly reporting to the Audit Committee.
13. The company is in due compliance with corporate governance requirements specified in regulation 17 to 27 and
clauses (b) to (i) of sub-regulation (2) of regulation 46 of SEBI Listing Regulations.

DECLARATION REGARDING COMPLAINCE BY BOARD MEMBERS AND SENIOR MANAGEMENT PERSONNEL WITH
THE COMPANY’S CODE OF CONDUCT
This is to confirm that the Company has adopted a Code of Conduct for its employees including the Managing Director
and Executive Directors. In addition, the company has adopted a Code of Conduct for its Non-Executive Directors and
Independent Directors. These Codes are available on the company’s website.
I confirm that the company has in respect of the year ended March 31, 2018, received from the Senior Management Team
of the Company and the Members of the Board, a declaration of compliance with the Code of Conduct as applicable to
them.
For the purpose of this declaration, Senior Management Team means the Chief Financial Officer, employees in the Vice
President and above cadre and the Company Secretary as on March 31, 2018.
Hyderabad S.Veera Reddy

29th May 2018 Managing Director
INDEPENDENT AUDITOR'S CERTIFICATE ON CORPORATE GOVERNANCE

To the Members of Sagar Cements Limited
1. This certificate is issued in accordance with the terms of our engagement letter dated September 27, 2017.
2. We, Deloitte Haskins & Sells, Chartered Accountants, the Statutory Auditors of Sagar Cements Limited ("the Company"), have
examined the compliance of conditions of Corporate Governance by the Company for the year ended on March 31, 2018, as
stipulated in regulations 17 to 27 and clauses (b) to (i) of regulation 46(2) and para C and D of schedule V of the SEBI (Listing
Obligations and Disclosure Requirements) Regulations, 2015 (the Listing Regulations).
Managements' Responsibility
3. The compliance of conditions of Corporate Governance is the responsibility of the Management. This responsibility includes the
design, implementation and maintenance of internal control and procedures to ensure the compliance with the conditions of the
Corporate Governance stipulated in Listing Regulations.
Auditor's Responsibility
4. Our responsibility is limited to examining the procedures and implementation thereof, adopted by the Company for ensuring
compliance with the conditions of the Corporate Governance. It is neither an audit nor an expression of opinion on the financial
statements of the Company.
5. We have examined the books of accounts and other relevant records and documents maintained by the Company for the
purposes of providing reasonable assurance on the compliance with Corporate Governance requirements by the Company.
6. We have carried out an examination of the relevant records of the Company in accordance with the Guidance Note on Certification
of Corporate Governance issued by the Institute of the Chartered Accountants of India (the ICAI), the standards on Auditing
specified under Section 143(10) of the Companies Act 2013, in so far as applicable for the purpose of this certificate and as per
the Guidance Note on Reports or Certificates for Special Purposes issued by the ICAI which requires that we comply with the
ethical requirements of the Code of Ethics issued by the ICAI.
7. We have complied with the relevant applicable requirements of the Standard on Quality Control (SQC) 1, Quality Controls for
Firms that Perform Audits and Reviews of Historical Financial Information, and Other Assurance and Related Services Engagements.
Opinion
8. Based on our examination of the relevant records and according to the information and explanations provided to us and the
representations provided by the Management, we certify that the Company has complied with the conditions of Corporate
Governance as stipulated in regulations 17 to 27 and clauses (b) to (i) of regulation 46(2) and para C and D of Schedule V of
Listing Regulations during the year ended March 31, 2018.
9. We state that such compliance is neither an assurance as to the future viability of the Company nor the efficiency or effectiveness
with which the Management has conducted the affairs of the Company.
For DELOITTE HASKINS & SELLS
Chartered Accountants
(Firm’s Registration No. 008072S)
Ganesh Balakrishnan
Partner
Hyderabad, July 19, 2018 (Membership No. 201193)

AUDITORS' REPORT
Independent Auditors’ Report

To the Members of Sagar Cements Limited
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of Sagar Cements Limited (“the Company”), which
comprise the Balance Sheet as at March 31, 2018, and the Statement of Profit and Loss (including Other Comprehensive
Income), the Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and a summary of the
significant accounting policies and other explanatory information.
Management’s Responsibility for the Standalone Financial Statements
The Company’s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (“the
Act”) with respect to the preparation of these standalone financial statements that give a true and fair view of the financial
position, financial performance including other comprehensive income, cash flows and changes in equity of the Company
in accordance with the Indian Accounting Standards (Ind AS) prescribed under section 133 of the Act read with the Companies
(Indian Accounting Standards) Rules, 2015, as amended, and other accounting principles generally accepted in India.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act
for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and
application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the
accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial
statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express an opinion on these standalone financial statements based on our audit.
In conducting our audit, we have taken into account the provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder
and the Order issued under section 143(11) of the Act.
We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing specified
under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform
the audit to obtain reasonable assurance about whether the standalone financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone
financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of
material misstatement of the standalone financial statements, whether due to fraud or error. In making those risk assessments,
the auditor considers internal financial control relevant to the Company’s preparation of the standalone financial statements
that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates
made by the Company’s Directors, as well as evaluating the overall presentation of the standalone financial statements.
We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our audit opinion on the
standalone financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone
financial statements give the information required by the Act in the manner so required and give a true and fair view in
conformity with the Ind AS and other accounting principles generally accepted in India, of the state of affairs of the Company
as at March 31, 2018, and its profit, total comprehensive income, its cash flows and the changes in equity for the year ended
on that date.
Report on Other Legal and Regulatory Requirements
1. As required by Section 143(3) of the Act, based on our audit we report, to the extent applicable that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and
belief were necessary for the purposes of our audit.
b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears
from our examination of those books.

c) The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive Income, the Cash Flow
Statement and Statement of Changes in Equity dealt with by this Report are in agreement with the books of
account.
d) In our opinion, the aforesaid standalone financial statements comply with the Indian Accounting Standards
prescribed under section 133 of the Act.
e) On the basis of the written representations received from the directors of the Company as on March 31, 2018
taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2018 from
being appointed as a director in terms of Section 164(2) of the Act.
f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the
operating effectiveness of such controls, refer to our separate Report in “Annexure A”. Our report expresses an
unmodified opinion on the adequacy and operating effectiveness of the Company’s internal financial controls
over financial reporting.
g) With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the
Companies (Audit and Auditors) Rules, 2014, as amended, in our opinion and to the best of our information
and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its standalone
financial statements;
ii. The Company did not have any long-term contracts including derivative contracts for which there were
any material foreseeable losses.
iii. There were no amounts which were required to be transferred to the Investor Education and Protection
Fund by the Company.
2. As required by the Companies (Auditor’s Report) Order, 2016 (“the Order”) issued by the Central Government in
terms of Section 143(11) of the Act, we give in “Annexure B” a statement on the matters specified in paragraphs 3 and
4 of the Order.
Ganesh Balakrishnan
Partner
Hyderabad, May 29, 2018 (Membership No. 201193)
ANNEXURE “A” TO THE INDEPENDENT AUDITORS’ REPORT

(Referred to in paragraph 1(f) under ‘Report on Other Legal and Regulatory Requirements’ section of our report of even date)
Report on the Internal Financial Controls Over Financial Reporting under Clause (i) of Sub-section 3 of Section 143 of the
Companies Act, 2013 (“the Act”)
We have audited the internal financial controls over financial reporting of Sagar Cements Limited(“the Company”) as of
March 31, 2018 in conjunction with our audit of the standalone Ind AS financial statements of the Company for the year
ended on that date
Management’s Responsibility for Internal Financial Controls
The Company’s management is responsible for establishing and maintaining internal financial controls based on the internal
control over financial reporting criteria established by the Company considering the essential components of internal control
stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of
Chartered Accountants of India. These responsibilities include the design, implementation and maintenance of adequate
internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business,
including adherence to company’s policies, the safeguarding of its assets, the prevention and detection of frauds and errors,
the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as
required under the Companies Act, 2013.

Our responsibility is to express an opinion on the Company’s internal financial controls over financial reporting of the
Company based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial
Controls Over Financial Reporting (the “Guidance Note”) issued by the Institute of Chartered Accountants of India and the
Standards on Auditing prescribed under Section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of
internal financial controls. Those Standards and the Guidance Note require that we comply with ethical requirements and
plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial
reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls
system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial
reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a
material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the
assessed risk. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material
misstatement of the standalone Ind AS financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on
the Company’s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A company’s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding
the reliability of financial reporting and the preparation of standalone Ind AS financial statements for external purposes in
accordance with generally accepted accounting principles. A company’s internal financial control over financial reporting
includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately
and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that
transactions are recorded as necessary to permit preparation of standalone Ind AS financial statements in accordance with
generally accepted accounting principles, and that receipts and expenditures of the company are being made only in
accordance with authorisations of management and directors of the company; and (3) provide reasonable assurance regarding
prevention or timely detection of unauthorised acquisition, use, or disposition of the company’s assets that could have a
material effect on the standalone Ind AS financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion
or improper management override of controls, material misstatements due to error or fraud may occur and not be detected.
Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to
the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions,
or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, to the best of our information and according to the explanations given to us, the Company has, in all material
respects, an adequate internal financial controls system over financial reporting and such internal financial controls over
financial reporting were operating effectively as at March 31, 2018, based on the criteria for internal financial control over
financial reporting established by the Company considering the essential components of internal control stated in the Guidance
Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of
India.

Ganesh Balakrishnan
Partner

ANNEXURE “B” TO THE INDEPENDENT AUDITOR’S REPORT
(Referred to in paragraph 2 under ‘Report on Other Legal and Regulatory Requirements’ section of our report of even date)
(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation
of property, plant and equipment.
(b) The Company has a program of verification of property, plant and equipment to cover all the items in a phased
manner over a period of three years which, in our opinion, is reasonable having regard to the size of the Company
and the nature of its assets. Pursuant to the program, certain property, plant and equipment were physically verified
by the Management during the year. According to the information and explanations given to us, no material
discrepancies were noticed on such verification.
(c) According to the information and explanations given to us and the records examined by us and based on the
examination of the registered sale deed / transfer deed provided to us, we report that, the title deeds, comprising all
the immovable properties of land and buildings which are freehold, are held in the name of the Company as at the
balance sheet date. Immovable properties of land and buildings whose title deeds have been pledged as security
for loans are held in the name of the Company based on the confirmations directly received by us from lenders.
(ii) As explained to us, the inventories were physically verified during the year by the Management at reasonable intervals
and no material discrepancies were noticed on physical verification.
(iii) According to the information and explanations given to us, the Company had granted unsecured loans to a company
covered in the register maintained under section 189 of the Companies Act, 2013, in respect of which:
(a) The terms and conditions of the grant of such loans are, in our opinion, prima facie, not prejudicial to the Company’s
interest.
(b) The schedule of repayment of principal and payment of interest has been stipulated and repayments or receipts of
principal amounts and interest have been regular as per stipulations.
(c) There is no overdue amount remaining outstanding as at the year-end.
(iv) In our opinion and according to the information and explanations given to us, the Company has complied with the
provisions of Sections 185 and 186 of the Companies Act, 2013 in respect of grant of loans, making investments and
providing guarantees and securities, as applicable.
(v) According to the information and explanations given to us, the Company has not accepted any deposit falling under the
purview of the provisions of section 73 to 76 of the Companies Act, 2013 during the year and does not have any
unclaimed deposits, and hence reporting under clause (v) of the order is not applicable.
(vi) The maintenance of cost records has been specified by the Central Government under section 148(1) of the Companies
Act, 2013. We have broadly reviewed the cost records maintained by the Company pursuant to the Companies (Cost
Records and Audit) Rules, 2014, as amended prescribed by the Central Government under sub-section (1) of Section 148
of the Companies Act, 2013, and are of the opinion that, prima facie, the prescribed cost records have been made and
maintained. We have, however, not made a detailed examination of the cost records with a view to determine whether
they are accurate or complete.
(vii) According to the information and explanations given to us, in respect of statutory dues:
(a) The Company has generally been regular in depositing undisputed statutory dues, including Provident Fund,
Employees’ State Insurance, Income-tax, Sales Tax, Service Tax,Customs Duty, Excise Duty, Value Added Tax,
Goods and Services Tax,cess and other material statutory dues applicable to it to the appropriate authorities.
(b) There were no undisputed amounts payable in respect of Provident Fund, Employees’ State Insurance, Income-tax,
Sales Tax, Service Tax, Customs Duty, Excise Duty, Value Added Tax, Goods and Services Tax, Cess and other
material statutory dues in arrears as at March 31, 2018 for a period of more than six months from the date they
became payable.
(c) Details of dues of Income-tax, Sales Tax, Custom Duty, Excise Duty, Value Added Tax and Entry Tax which have
not been deposited as on March 31, 2018 on account of disputes are given below:

Name of Nature of Forum where Dispute Period to Amount Amount
Statue Dues is Pending which the Involved Unpaid
Amount Relates ` lakhs)
(` ` lakhs)
(`
Central Excise Excise duty Customs, Excise and Service 2011-13 214 168
Act, 1944 Tax Appellate Tribunal
(CESTAT)
Commissioner of Appeals 2015-16 834 11
High Court of Telangana 2006-10 1,302 1,302
and Andhra Pradesh
Assistant Commissioner 2014-16 15 15
Sales Tax and Sales tax and Sales Tax Appellate Tribunal 1999-2000 20 15
Values Added VAT
Tax (VAT) Laws Enforcement Wing, CTO 2010-2011 7 7
Customs Act, Customs duty CESTAT 2012-13 193 189

1962
Finance Act, Service Tax CESTAT 2014-15 13 12
1994
Income Tax Income Tax Income Tax Appellate Tribunal 2005-06
Act, 1961 2008-10 1,190 971
2011-12
Local Areas Act, Entry tax High Court of Telangana 2016-17 65 65
2001 and Andhra Pradesh
Additional Divisional 2012-13 to 11 10
Commissioner, Rural Division, 2015-16
Hyderabad
There are no dues of Service tax and Goods and Services tax as on March 31, 2018 on account of disputes.
(viii) In our opinion and according to the information and explanations given to us, the Company has not defaulted in the
repayment of loans or borrowings to financial institutions, banks and government. The Company has not issued any
debentures.
(ix) The Company has not raised moneys by way of initial public offer or further public offer (including debt instruments). In
our opinion and according to the information and explanations given to us, money raised by way of term loans have been
applied by the Company during the year for the purposes for which they were raised other than temporary deployment
pending application of proceeds.
(x) To the best of our knowledge and according to the information and explanations given to us, no material fraud by the
Company and no material fraud on the Company by its officers or employees has been noticed or reported during the
year.
(xi) In our opinion and according to the information and explanations given to us, the Company has paid / provided managerial
remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule
V to the Companies Act, 2013.
(xii) The Company is not a Nidhi Company and hence reporting under clause (xii) of the Order is not applicable.
(xiii) In our opinion and according to the information and explanations given to us the Company is in compliance with Section
177 and 188 of the Companies Act, 2013, where applicable, for all transactions with the related parties and the details of
related party transactions have been disclosed in the financial statements etc. as required by the applicable accounting
standards.
(xiv) During the year, the Company has not made any preferential allotment or private placement of shares or fully or partly
convertible debentures and hence reporting under clause (xiv) of Order is not applicable to the Company.
(xv) In our opinion and according to the information and explanations given to us, during the year the Company has not
entered into any non-cash transactions with its directors or directors of its subsidiary company or persons connected with
them and hence provisions of section 192 of the Companies Act, 2013 are not applicable.
(xvi) The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.
Hyderabad, May 29, 2018 Ganesh Balakrishnan
Partner
(Membership No. 201193)
BALANCE SHEET
Balance Sheet as on March 31, 2018 All amounts are in ` lakhs unless otherwise stated
Particulars Note As at As at
March 31, 2018 March 31, 2017
ASSETS
Non-current assets
a) Property, plant and equipment 2 55,233 49,451
(b) Capital work-in-progress 12,206 5,165
(c) Intangible assets 3 15 16
(d) Financial assets
(i) Investments
(a) Investment in subsidiaries 4 26,595 25,759
(b) Other investments 4 - 28
(ii) Loans 5 2,500 -
(iii) Other financial assets 6 1,435 1,589
(e) Advance income tax 27 71 100
(f) Other non-current assets 7 5,123 2,366
Total Non-current assets (1) 1,03,178 84,474
Current assets
(a) Inventories 8 6,757 7,296
(b) Financial assets
(i) Trade receivables 9 5,847 4,634
(ii) Cash and cash equivalents 10 4,050 16,116
(iii) Bank balances other than (ii) above 11 1,597 869
(iv) Other financial assets 6 4,200 4,068
(c) Other current assets 7 5,801 4,237
Total Current assets (2) 28,252 37,220
Total Assets (1+2) 1,31,430 1,21,694
EQUITY AND LIABILITIES
Equity
(a) Equity share capital 12 2,040 2,040
(b) Other equity 13 80,343 76,407
Total Equity (1) 82,383 78,447
Liabilities
Non-current liabilities
(a) Financial liabilities
(i) Borrowings 14 13,783 14,829
(ii) Other financial liabilities 15 4,491 4,280
(b) Provisions 16 328 199
(c) Deferred tax liabilities (Net) 27 4,030 3,003
(d) Other non-current liabilities 18 179 178
Total Non-current liabilities (2) 22,811 22,489
Current liabilities
(i) Borrowings 14 9,577 5,800
(ii) Trade payables 17 7,841 8,420
(iii) Other financial liabilities 15 3,844 2,940
(c) Current tax liabilities (Net) 27 232 62
(d) Other current liabilities 18 4,542 3,380
Total Current liabilities (3) 26,236 20,758
Total Liabilities (4=2+3) 49,047 43,247
Total Equity and Liabilities (1+4) 1,31,430 1,21,694
Corporate information and significant accounting policies 1
See accompanying notes forming part of the financial statements
In terms of our report attached For and on behalf of the Board of Directors
For Deloitte Haskins & Sells S.Veera Reddy Dr.S.Anand Reddy S.Sreekanth Reddy
Chartered Accountants Managing Director Joint Managing Director Executive Director
Ganesh Balakrishnan R.Soundararajan K.Prasad
Partner Company Secretary Chief Financial Officer
Place : Hyderabad, Date : May 29, 2018 Place: Hyderabad, Date: May 29, 2018
STATEMENT OF PROFIT AND LOSS

Statement of Profit and Loss for the year ended March 31, 2018
All amounts are in ` lakhs unless otherwise stated
Particulars Note
March 31, 2018 March 31, 2017
I Revenue from operations 19 77,601 62,000
II Other income 20 1,860 2,312
III Total Income (I + II) 79,461 64,312
IV Expenses
(a) Cost of materials consumed 21 10,713 7,214
(b) Purchase of stock-in-trade 1,726 -
(c) Changes in inventories of finished goods, 22 (1,650) 297
work-in-progress and stock-in-trade
(d) Excise duty 41 2,802 8,424
(e) Employee benefit expenses 23 4,494 3,635
(f) Finance costs 24 2,973 3,045
(g) Depreciation and amortisation expense 25 3,330 2,800
(h) Other expenses 26 47,464 36,493
Total Expenses 71,852 61,908
V Profit before tax (III - IV) 7,609 2,404
VI Tax Expense
(a) Current tax 27 1,641 469
(b) Deferred tax 27 1,029 686
Total Tax expense 2,670 1,155
VII Profit after tax (V - VI) 4,939 1,249
VIII Other comprehensive income
(i) Items that will not be reclassified to profit or loss
(a) Remeasurement of the defined benefit plans (32) (8)
(b) Equity instruments through - 1
other comprehensive income
(c) Gain on sale of investments in 1 -
unquoted equity instruments
(ii) Income tax relating to items that will not be 11 3
reclassified to profit or loss
(20) (4)
IX Total Comprehensive Income for the year (VII + VIII) 4,919 1,245
X Earnings Per Share (Face value of ` 10 each)
Basic and Diluted 36 24.21 6.98
See accompanying notes forming part of the financial statements
For Deloitte Haskins & Sells S.Veera Reddy Dr.S.Anand Reddy

Chartered Accountants Managing Director Joint Managing Director
Ganesh Balakrishnan S.Sreekanth Reddy K.Prasad

Partner Executive Director Chief Financial Officer
R.Soundararajan
Company Secretary
Place : Hyderabad Place: Hyderabad

Date : May 29, 2018 Date: May 29, 2018

Statement of changes in equity for the year ended March 31, 2018
A. Equity share capital
Particulars Amount
Balance at March 31, 2016 1,739
Changes in equity share capital during the year 301
Changes in equity share capital during the year -
B. Other equity
Items of other
Reserves and surplus comprehensive income
Capital Securities General Retained Equity Other Total
Particulars reserve premium reserve earnings instruments items of other
account through other other equity
comprehensive comprehensive
income income
Balance as at the March 31, 2016 35 10,503 3,598 39,469 12 41 53,658
Profit for the year - - - 1,249 - - 1,249
Issue of equity shares - 21,875 - - - - 21,875
Share issue expenses (net of tax ` 197) - (371) - - - - (371)
Other comprehensive income for the year - - - - 1 (5) (4)
(net of tax ` 8)
Balance as at March 31, 2017 35 32,007 3,598 40,718 13 36 76,407
Dividend on equity shares (including tax) - - - (983) - - (983)
(net of tax ` 11)
Transfer from Reserve for equity instruments - - - 14 (14) - -
Balance as at March 31, 2018 35 32,007 3,598 44,688 - 15 80,343
See accompanying notes forming part of the standalone financial statements
R.Soundararajan
Company Secretary
Date : May 29, 2018 Date: May 29, 2018

CASH FLOW STATEMENT

Statement of cash flows for the year ended March 31, 2018
Particulars March 31, 2018 March 31, 2017
A. Cash flows from operating activities
Profit after tax 4,939 1,249
Adjustments for
Tax expense 2,670 1,155
Depreciation and amortization expense 3,330 2,800
Finance costs 2,973 3,045
Interest income (1,778) (2,220)
Liabilities no longer required written back (64) -
Provision for doubtful trade receivables 79 33
Profit on sale of plant and equipment (net) (9) (41)
Dividend income (` 26,000 for the year ended - -
March 31, 2018 and March 31, 2017)
Impairment of non-financial asset - 7,201 88 4,860
Operating profit before working capital changes 12,140 6,109
Changes in working capital:
Adjustments for (increase) / decrease in operating assets:
Trade receivables (1,292) (66)
Inventories 539 (726)
Other financial assets 297 2,346
Other assets (1,564) (2,020) (302) 1,252
Adjustments for increase/(decrease) in operating liabilities:
Trade payables (558) (665)
Other financial liabilities 290 (25)
Provisions 149 (2,336)
Other liabilities 1,206 1,087 (207) (3,233)
Cash generated from operating activities 11,207 4,128
Less: Income tax paid (1,442) (549)
Net Cash generated from operating activities 9,765 3,579
B Cash Flow from investing activities
Capital expenditure on property, plant and equipment (18,116) (13,417)
including capital advances
Deposits not considered as cash and cash equivalents
- Placed (1,483) (232)
- Matured 607 -
Proceeds from disposal of plant and equipment 28 75
Proceeds from sale of investments 28 -
Interest received 822 266
Dividend income (` 26,000 for the year ended - -
March 31, 2018 and March 31, 2017)
Net cash used in investing activities (18,114) (13,308)

C Cash flow from financing activities
Proceeds from issue of shares including securities premium - 22,176
Expenses on issue of shares - (568)
Proceeds from non-current borrowings 2,334 10,204
Repayment of non-current borrowings (3,240) (5,327)
Loan given to related parties (2,500) (1,499)
Proceeds from unsecured loans to related parties - 4,982
Proceeds/ (Repayments) from current borrowings (net) 3,777 (1,113)
Finance costs (3,105) (3,027)
Dividends paid including tax (983) -
Net cash generated from/(used in) financing activities (3,717) 25,828
Net increase in cash and cash equivalent (A+B+C) (12,066) 16,099
Cash and cash equivalent at the beginning of the year 16,116 17
Cash and cash equivalent at the end of the year (Refer Note 10) 4,050 16,116
R.Soundararajan
Company Secretary
Date : May 29, 2018 Date: May 29, 2018

Notes to the Financial Statements
1. Corporate information and significant accounting policies
a) Corporate Information
Sagar Cements Limited (“the Company”) was incorporated under the Companies Act, 1956 as a public limited
company on January 15, 1981. The Company is engaged in the business of manufacture and sale of cement.
b) Significant accounting policies
(i) Statement of compliance
The financial statements have been prepared in accordance with Indian Accounting Standards prescribed
under section 133 of the Companies Act, 2013(“the Act”) read with the Companies (Indian Accounting
Standards) Rules, 2015 as amended and other accounting principles generally accepted in India and
guidelines issued by the Securities and Exchange Board of India (SEBI).
(ii) Basis of preparation and presentation
The financial statements have been prepared on the historical cost basis except for certain financial
instruments that are measured at fair values at the end of each reporting period, as explained in the
accounting policies below.
Historical cost is generally based on the fair value of the consideration given in exchange for goods and
services.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date, regardless of whether that price is
directly observable or estimated using another valuation technique. In estimating the fair value of an
asset or a liability, the Company takes into account the characteristics of the asset or liability if market
participants would take those characteristics into account when pricing the asset or liability at the
measurement date. Fair value for measurement and/or disclosure purposes in these financial statements
is determined on such a basis, except for net realisable value in Ind AS 2 or value in use in Ind AS 36 that
have some similarities to fair value but are not fair value.
In addition, for financial reporting purposes, fair value measurements are categorised into Level 1, 2, or
3 based on the degree to which the inputs to the fair value measurements are observable and the
significance of the inputs to the fair value measurement in its entirety, which are described as follows:
Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the
entity can access at the measurement date;
Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the
asset or liability, either directly or indirectly; and
Level 3 inputs are unobservable inputs for the asset or liability.
(iii) Use of estimates
In the application of the accounting policies, which are described in Note 1(b), the management of the
Company are required to make judgements, estimates and assumptions about the carrying amounts of
assets and liabilities that are not readily apparent from other sources. The Management believes that the
estimates used in preparation of the financial statements are prudent and reasonable and the associated
assumptions are based on historical experience and other factors that are considered to be relevant.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognised in the period in which the estimate is revised if the revision affects only that
period, or in the period of the revision and future periods if the revision affects both current and future
periods. The significant areas of estimation, uncertainty and critical judgements in applying accounting
policies that have the most significant effect on the amount recognised in the financial statements is
included in the following notes:

• Useful lives of property, plant and equipment and intangible assets
• Assets and obligations relating to employee benefits
• Evaluation of recoverability of deferred tax assets
• Financial instruments
• Provisions and contingencies
• Expected credit losses
(iv) Revenue recognition
Revenue is measured at the fair value of the consideration received or receivable. Revenue is reduced
for estimated rebates and other similar allowances. Revenue is measured at fair value of the consideration
received or receivable, after deduction of any trade discounts, volume rebates and any taxes or duties
collected on behalf of the government which are levied on sales such as sales tax, value added tax,
goods and services tax, etc.
Sale of goods
Revenue from the sale of goods is recognised when the goods are delivered and titles have passed, at
which time all the following conditions are satisfied:
• the Company has transferred to the buyer the significant risks and rewards of ownership of the goods;
• the Company retains neither continuing managerial involvement to the degree usually associated
with ownership nor effective control over the goods sold;
• the amount of revenue can be measured reliably;
• it is probable that the economic benefits associated with the transaction will flow to the Company;
and
• the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Dividend and interest income
Dividend income from investments is recognised when the shareholder’s right to receive payment has
been established.
Interest income from a financial asset is recognised when it is probable that the economic benefits will
flow to the Company and the amount of income can be measured reliably. Interest income is accrued on
a time basis, by reference to the principal outstanding and at the effective interest rate applicable.
(v) Borrowing costs
Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets,
which are assets that necessarily take a substantial period of time to get ready for their intended use or
sale, are added to the cost of those assets, until such time as the assets are substantially ready for their
intended use or sale.
Interest income earned on the temporary investment of specific borrowings pending their expenditure
on qualifying assets is deducted from the borrowing costs eligible for capitalisation.
All other borrowing costs are recognised in the statement of profit and loss in the period in which they
are incurred.
(vi) Government grants
Government grants and subsidies are recognised when there is reasonable assurance that the Company
will comply with the conditions attached thereto and that the grants will be received.
(vii) Employee benefits
Employee benefits include provident fund, superannuation fund, employee state insurance scheme, gratuity
fund and compensated absences.

Defined Contribution Plans:
The Company’s contribution to provident fund, superannuation fund and employee state insurance scheme
are considered as defined contribution plans and are charged as an expense based on the amount of
contribution required to be made and when services are rendered by the employees.
Defined Benefit Plans:
For defined benefit retirement benefit plans, the cost of providing benefits is determined using the projected
unit credit method, with actuarial valuations being carried out at the end of each annual reporting
period. Re-measurement, comprising actuarial gains and losses, the effect of the changes to the asset
ceiling (if applicable) and the return on plan assets (excluding net interest), is reflected immediately in
the balance sheet with a charge or credit recognised in other comprehensive income in the period in
which they occur. Re-measurement recognised in other comprehensive income is reflected immediately
in retained earnings and is not reclassified to profit or loss. Past service cost is recognised in profit or loss
in the period of a plan amendment. Net interest is calculated by applying the discount rate at the beginning
of the period to the net defined benefit liability or asset. Defined benefit costs are categorised as follows:
• service cost (including current service cost, past service cost, as well as gains and losses on curtailments
and settlements);
• net interest expense or income; and
• re-measurement
Short-term employee benefits
The undiscounted amount of short-term employee benefits expected to be paid in exchange for the
services rendered by employees are recognized during the year when the employees render the service.
These benefits include performance incentive and compensated absences which are expected to occur
within twelve months after the end of the period in which the employee renders the related service.
(viii) Taxation
Income tax expense represents the sum of current tax and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from ‘profit before
tax’ as reported in the statement of profit and loss because of items of income or expense that are taxable
or deductible in other years and items that are never taxable or deductible. The Company’s current tax is
calculated using tax rates that have been enacted or substantively enacted by the end of the reporting
period.
Deferred tax
Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities
in the financial statements and the corresponding tax bases used in the computation of taxable profit.
Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax assets
are generally recognised for all deductible temporary differences to the extent that it is probable that
taxable profits will be available against which those deductible temporary differences can be utilised.
Such deferred tax assets and liabilities are not recognised if the temporary difference arises from the
initial recognition (other than in a business combination) of assets and liabilities in a transaction that
affects neither the taxable profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced
to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or
part of the asset to be recovered.
Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in
which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted
or substantively enacted by the end of the reporting period.
The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow
from the manner in which the Company expects, at the end of the reporting period, to recover or settle
the carrying amount of its assets and liabilities.

Current and deferred tax are recognised in profit or loss, except when they relate to items that are
recognised in other comprehensive income or directly in equity, in which case, the current and deferred
tax are also recognised in other comprehensive income or directly in equity respectively.
(ix) Property, plant and equipment
Property, plant and equipment are carried at cost less accumulated depreciation and impairment losses,
if any. The cost of property, plant and equipment comprises its purchase price net of any trade discounts
and rebates, any import duties and other taxes (other than those subsequently recoverable from the tax
authorities), any directly attributable expenditure on making the asset ready for its intended use, other
incidental expenses and borrowings costs attributable to acquisition of qualifying property, plant and
equipment up to the date the asset is ready for its intended use. Freehold land is not depreciated.
Properties in the course of construction for production, supply or administrative purposes are carried at
cost, less any recognised impairment loss. Cost includes professional fees and, for qualifying assets,
borrowing costs capitalised in accordance with the Company’s accounting policy. Such properties are
classified to the appropriate categories of property, plant and equipment when completed and ready for
intended use. Depreciation of these assets, on the same basis as other property assets, commences when
the assets are ready for their intended use.
An item of property, plant and equipment is derecognised upon disposal or when no future economic
benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the disposal
or retirement of an item of property, plant and equipment is determined as the difference between the
sales proceeds and the carrying amount of the asset and is recognised in profit or loss.
Depreciation is recognised so as to write off the cost of assets (other than freehold land and properties
under construction) less their residual values over their useful lives.
Depreciation on plant and machinery and railway siding is charged under straight line method and on
other assets depreciation is charged under WDV method, based on the useful life prescribed in Schedule
II to the Companies Act, 2013 except in respect of the following categories of assets, in whose case the
life of the assets has been assessed as under based on technical advice, taking into account the nature of
the asset, the estimated usage of the asset, the operating conditions of the asset, past history of replacement,
anticipated technological changes, manufacturers warranties and maintenance support, etc.
• Railway siding - 25 years
• Plant and machinery other than continuous process plant – 25 years
The estimated useful lives, residual values and depreciation method are reviewed at the end of each
reporting period, with the effect of any changes in estimate accounted for on a prospective basis.
The Company follows the process of componentization for property, plant and equipment. Accordingly,
the Company has identified a part of an asset as a separate component in whole asset value (beyond
certain value) and useful life of the part is different from the useful life of the remaining asset. The useful
life has been assessed based on technical advice, taking into account the nature of the asset / component
of an asset, the estimated usage of the asset / component of an asset on the basis of management’s best
estimation of getting economic benefits from those class of assets / components of an asset. The Company
uses its technical expertise along with historical and industry trends for arriving the economic life of an
asset/component of an asset.
Individual assets costing less than or equal to ` 5,000 are depreciated in full in the year of acquisition.
(x) Intangible assets acquired separately
Intangible assets with finite useful lives that are acquired separately are carried at cost less accumulated
amortisation and accumulated impairment losses. Amortisation is recognised on a straight-line basis
over their estimated useful lives. The estimated useful life and amortisation method are reviewed at the
end of each reporting period, with the effect of any changes in estimate being accounted for on a
prospective basis.

(xi) Inventories
Inventories are valued at the lower of cost and net realisable value after providing for obsolescence and
other losses, where considered necessary. Cost includes all charges in bringing the goods to the point of
sale, including octroi and other levies, transit insurance and receiving charges. Net realisable value
represents the estimated selling price for inventories less all estimated costs of completion and costs
necessary to make the sale. Work-in-progress and finished goods include appropriate proportion of
overheads.
The methods of determining cost of various categories of inventories are as follows:
Raw materials and coal Weighted average method
Stores and spares and packing materials Weighted average method
Work-in-progress and finished goods (manufactured) Weighted average method and including an
appropriate share of applicable overheads.
(xii) Cash and cash equivalents (for purposes of Cash Flow Statement)
Cash comprises cash on hand, in bank and demand deposits with banks. Cash equivalents are short-term
balances (with an original maturity of three months or less from the date of acquisition), highly liquid
investments that are readily convertible into known amounts of cash and which are subject to insignificant
risk of changes in value.
Cash flows are reported using indirect method whereby profit/ (loss) after tax is adjusted for the effects of
transaction of non-cash nature and any deferrals or accruals of past or future cash receipts and payments.
The cash flows from operating, investing and financing activities of the Company are segregated based
on the available information.
(xiii) Foreign currency transactions and translations:
Transactions in foreign currencies entered into by the Company are accounted at the exchange rates
prevailing on the date of the transaction or at rates that closely approximate the rate at the date of the
transaction.
Foreign currency monetary items of the Company, outstanding at the balance sheet date are restated at
the year-end rates. Non-monetary items of the Company that are measured in terms of historical cost in
a foreign currency are not retranslated.
For the purposes of presenting these financial statements, the exchange differences on monetary items
arising, if any, are recognised in the statement of profit and loss in the period in which they arise.
(xiv) Financial Instruments:
(A) Initial recognition:
Financial assets and financial liabilities are recognized when a Company becomes a party to the
contractual provisions of the instruments.
Financial assets and financial liabilities are initially measured at fair value. Transaction costs that
are directly attributable to the acquisition or issue of financial assets and financial liabilities (other
than financial assets and financial liabilities at fair value through profit or loss) are added to or
deducted from the fair value of the financial asset or financial liabilities, as appropriate, on initial
recognition. Transaction costs directly attributable to the acquisition of financial assets or liabilities
at fair value through profit or loss are recognized immediately in profit or loss.
(B) Subsequent measurement:
a. Financial assets carried at amortized cost: A financial asset is subsequently measured at
amortized cost if it is held within a business model whose objective is to hold the asset in
order to collect contractual cash flows and the contractual terms of the financial asset give
rise on specified dates to cash flows that are solely payments of principal and interest on the
principal amount outstanding.

b. Financial assets at fair value through other comprehensive income: A financial asset is
subsequently measured at fair value through other comprehensive income if it is held within
a business model whose objective is achieved by both collecting contractual cash flows and
selling financial assets and the contractual terms of the financial asset give rise on specified
dates to cash flows that are solely payments of principal and interest on the principal amount
outstanding. The Company has made an irrevocable election for its investments which are
classified as equity instruments to present the subsequent changes in fair value in other
comprehensive income based on its business model.
c. Financial assets at fair value through profit or loss: A financial asset which is not classified in
any of the above categories are subsequently fair valued through profit or loss.
d. Financial liabilities: Financial liabilities are subsequently carried at amortized cost using the
effective interest method, except for contingent consideration recognized in a business
combination which is subsequently measured at fair value through profit and loss. For trade
and other payables maturing within one year from the Balance Sheet date, the carrying amounts
approximate fair value due to the short maturity of these instruments.
Investment in subsidiaries: Investment in subsidiaries is carried at cost in the separate financial
statements.
(C) De-recognition of financial assets and liabilities:
a. Financial assets:
The Company derecognizes a financial asset when the contractual rights to the cash flows
from the asset expire, or when it transfers the financial asset and substantially all the risks and
rewards of ownership of the asset to another party. If the Company retains substantially all the
risks and rewards of ownership of a transferred financial asset, the Company continues to
recognize the financial asset and also recognizes a collateralized borrowing for the proceeds
received.
On de-recognition of a financial asset in its entirety, the difference between the asset’s carrying
amount and the sum of the consideration received and receivable and the cumulative gain or
loss that had been recognized in other comprehensive income and accumulated in equity is
recognized in profit or loss if such gain or loss would have otherwise been recognized in
profit or loss on disposal of that financial asset.
b. Financial liabilities:
The Company derecognizes financial liabilities when, and only when, the Company’s
obligations are discharged, cancelled or have expired. The difference between the carrying
amount of the financial liability derecognized and the consideration paid and payable is
recognized in profit or loss.
(xv) Impairment of assets
The Company recognizes loss allowances using the expected credit loss (ECL) model for the financial
assets which are not fair valued through profit or loss. Loss allowance for trade receivables with no
significant financing component is measured at an amount equal to lifetime ECL. For all other
financial assets, expected credit losses are measured at an amount equal to the 12-month ECL,
unless there has been a significant increase in credit risk from initial recognition in which case
those are measured at lifetime ECL. The amount of expected credit losses (or reversal) that is required
to adjust the loss allowance at the reporting date to the amount that is required to be recognized is
recognized as an impairment gain or loss in profit or loss.
For trade receivables only, the Company applies the simplified approach permitted by Ind AS 109
Financial Instruments, which requires expected lifetime losses to be recognized from initial
recognition of the receivables.

As a practical expedient, the Company uses a provision matrix to determine impairment loss of its
trade receivables. The provision matrix is based on its historically observed default rates over the
expected life of the trade receivable and is adjusted for forward looking estimates. The ECL loss
allowance (or reversal) during the year is recognized in the statement of profit and loss.
b. Non-financial assets:
Intangible assets and property, plant and equipment are evaluated for recoverability whenever
events or changes in circumstances indicate that their carrying amounts may not be recoverable.
For the purpose of impairment testing, the recoverable amount (i.e. the higher of the fair value less
cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does not
generate cash flows that are largely independent of those from other assets. In such cases, the
recoverable amount is determined for the CGU to which the asset belongs.
If such assets are considered to be impaired, the impairment to be recognized in the Statement of
Profit and Loss is measured by the amount by which the carrying value of the assets exceeds the
estimated recoverable amount of the asset. An impairment loss is reversed in the statement of profit
and loss if there has been a change in the estimates used to determine the recoverable amount. The
carrying amount of the asset is increased to its revised recoverable amount, provided that this
amount does not exceed the carrying amount that would have been determined (net of any
accumulated amortization or depreciation) had no impairment loss been recognized for the asset
in prior years.
(xvi) Earnings per share
Basic earnings per share is computed by dividing the profit / (loss) after tax (including the post-tax effect
of extraordinary items, if any) by the weighted average number of equity shares outstanding during the
year. Diluted earnings per share is computed by dividing the profit / (loss) after tax (including the post-tax
effect of extraordinary items, if any) as adjusted for dividend, interest and other charges to expense or
income (net of any attributable taxes) relating to the dilutive potential equity shares, by the weighted
average number of equity shares considered for deriving basic earnings per share and the weighted
average number of equity shares which could have been issued on the conversion of all dilutive potential
equity shares.
(xvii) Provisions
Provisions are recognised when the Company has a present obligation (legal or constructive) as a result
of a past event, it is probable that the Company will be required to settle the obligation, and a reliable
estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the
present obligation at the end of the reporting period, taking into account the risks and uncertainties
surrounding the obligation. When a provision is measured using the cash flows estimated to settle the
present obligation, its carrying amount is the present value of those cash flows (when the effect of the
time value of money is material).
(xviii)Operating cycle
Based on the nature of activities of the Company and the normal time between acquisition of assets and
their realisation in cash or cash equivalents, the Company has determined its operating cycle as twelve
months for the purpose of classification of its assets and liabilities as current and non-current.
(xix) Recent accounting pronouncements
Standards issued but not yet effective:
In March 2018, The Ministry of Corporate Affairs issued the Companies (Indian Accounting Standards)
Amendment Rules, 2018 notifying Ind AS 115 Revenue from Contracts with Customers and amendments
to Ind AS 21 The Effects of changes in Foreign Exchange Rates, applicable for annual periods beginning
on or after April 01, 2018.

Ind AS 115 – Revenue from Contracts with Customers:
Ind AS 115 establishes a single comprehensive model for entities to use in accounting for revenue arising
from contracts with customers. Ind AS 115 will supersede the current revenue recognition standard IND
AS 18 – Revenue and Ind AS 11 – Construction Contracts when it becomes effective.
The core principle of Ind AS 115 is that an entity should recognise revenue to depict the transfer of
promised goods or services to customers in an amount that reflects the consideration to which the entity
expects to be entitled in exchange for those goods or services, based on the five step approach as defined
in this standard.
Under this standard, an entity recognises revenue when (or as) a performance obligation is satisfied, i.e.
when ‘control’ of the goods or services underlying the particular performance obligation is transferred to
the customer.
The Company is evaluating the impact of this amendment on its financial statements.
Ind AS 116 – Leases
Ind AS 116 sets out a comprehensive model for identification of lease arrangements and their treatment
in the financial statements of the lessor and lessee. Ind AS 116 will supersede the current leases standard
IND AS 17 – Leases when it becomes effective.
Ind AS 116 applies a control model for the identification of leases, distinguishing between leases and
service contracts on the basis of whether there is an identified asset controlled by the customer.
The Company is evaluating the impact of this amendment on its financial statements.

2. Property, plant and equipment
As at As at
Land - freehold 6,197 5,728
Land restoration 152 161
Buildings 11,266 11,414
Plant & machinery 28,780 22,898
Furniture and fittings 136 186
Office and other equipment 567 644
Electrical installations 1,816 1,887
Computers 33 42
Vehicles 219 175
Railway siding 6,067 6,316
Total 55,233 49,451

68
For the year 2017-18 All amounts are in ` lakhs unless otherwise stated
Sagar Cements Limited - Annual Report 2017-18
Description of assets Land- Land Buildings Plant & Furniture Office Electrical Computers Vehicles Railway Total
freehold restoration machinery and and other installations siding
fittings equipment
I. Gross block
Opening Balance 5,728 179 16,045 38,406 707 3,555 5,246 221 735 6,684 77,506
Additions 469 - 768 7,473 - 2 276 10 132 - 9,130
Disposals - - - 70 - - - - 27 - 97
Balance as at March 31, 2018 6,197 179 16,813 45,809 707 3,557 5,522 231 840 6,684 86,539
II. Accumulated depreciation
and impairment
Opening Balance - 18 4,631 15,508 521 2,911 3,359 179 560 368 28,055
Depreciation expense - 9 916 1,575 50 79 347 19 85 249 3,329
Eliminated on disposal of assets - - - 54 - - - - 24 - 78
Balance as at March 31, 2018 - 27 5,547 17,029 571 2,990 3,706 198 621 617 31,306
Net block (I-II)
Carrying value as at March 31, 2018 6,197 152 11,266 28,780 136 567 1,816 33 219 6,067 55,233
For the year 2016-17
Description of assets Land- Land Buildings Plant & Furniture Office Electrical Computers Vehicles Railway Total
freehold restoration machinery and and other installations siding
fittings equipment
I. Gross block
Opening Balance 4,158 179 13,101 35,494 688 3,516 4,938 194 795 6,427 69,490
Additions 1,570 - 2,944 2,948 19 39 308 27 74 257 8,186
Disposals - - - 36 - - - - 134 - 170
Balance as at March 31, 2017 5,728 179 16,045 38,406 707 3,555 5,246 221 735 6,684 77,506
II. Accumulated depreciation and
impairment
Opening Balance - 9 3,767 14,370 455 2,814 3,000 166 596 128 25,305
Impairment losses recognised - - 85 - - - 3 - - - 88
in profit or loss
Net block (I-II)
As at As at
3. Intangible assets
Computer software 15 16
Total 15 16
Computer Software:
As at As at
Particulars
March 31, 2018 March 31, 2017
I. Gross block
Opening Balance 267 264
Additions - 3
Closing Balance 267 267
II. Accumulated amortization
Opening Balance 251 249
Amortisation expense 1 2
Closing Balance 252 251
Net block (I-II)
Carrying Value 15 16
As at March 31, 2018 As at March 31, 2017
Note Particulars No. of No. of
shares Amount shares Amount
4. Investments (Unquoted)
Investments in subsidiary
Sagar Cements (R) Limited
Equity shares (Refer Note (i) below) 10,38,12,925 18,553 10,38,12,925 18,553
8% Cumulative redeemable preference shares 4,30,00,000 8,042 4,30,00,000 7,206
(Refer Note (ii) below)
26,595 25,759
Investments in equity instruments - others
Panchavati Polyfibres Limited - - 26,000 26
PCL Financial Services Limited - - 1,000 2
- - - 28
Aggregate amount of unquoted investments 26,595 25,759
Aggregate amount of investment carried at fair value through - - - 28
Notes
1 (i) Includes investment of ` 401 (March 31, 2017: ` 401) on account of fair valuation of corporate guarantee given by the
company on behalf of Sagar Cements (R) Limited, a wholly owned subsidiary.
(ii) During the year 2016-17, the Company converted the outstanding loan balance of ` 17,200 given to its wholly-owned
subsidiary, Sagar Cements (R) Limited, to 43,000,000 8% cumulative redeemable preference shares of ` 10 each at a
premium of ` 30 each. At initial recognition, the preference shares are measured at fair value. The difference between the
fair value at initial recognition and the transaction price is accounted as deemed capital contribution to the subsidiary
company. Accordingly, ` 6,866 is accounted as the fair value of the preference shares and ` 10,334 is accounted as
deemed investment on conversion of loan to preference shares at concessional rate and added to the cost of investment
held in the subsidiary. As at March 31, 2018, ` 836 (March 31, 2017: ` 340) has been recognised as interest income on
preference shares and added to the cost of preference shares.

As at As at
Note Particulars
March 31, 2018 March 31, 2017
5. Loans (Unsecured, considered good)
Non-current
Loans to related party (Refer Note 34) 2,500 -
Total Loans 2,500 -
6. Other financial assets (Unsecured, considered good)
Non-current
(a) Security deposits 1,281 1,589
(b) Balance held as margin money deposit against borrowings 154 -
Total 1,435 1,589
Current
(a) Security deposits 90 95
(b) Advances to employees 68 51
(c) Interest accrued but not due 4,042 3,922
Total 4,200 4,068
Total other financial assets 5,635 5,657
7. Other assets (Unsecured, considered good)
Non-current
(a) Capital advances 5,120 2,363
(b) Prepaid expenses 3 3
Total 5,123 2,366
Current
(a) Advances to suppliers 578 613
(b) Advances to related parties (Refer Note below) 3,690 2,459
(c) Prepaid expenses 170 152
(d) Balances with government authorities (other than income taxes) 836 486
(e) Excise duty refund receivable 194 194
(f) Incentives receivable from government 333 333
Total 5,801 4,237
Total other assets 10,924 6,603
Note: Includes ` 2,979 (As at March 31, 2017: ` 1,763) paid to subsidiary company

As at As at
Note Particulars
March 31, 2018 March 31, 2017
8. Inventories (at lower of cost and net realisable value)
(a) Raw materials 394 493
(b) Coal 1,437 2,078
(c) Work-in-progress 3,314 1,580
(d) Stores and spares 1,201 1,266
(e) Packing materials 237 209
(f) Finished goods 154 238
Total (A) 6,737 5,864
Goods-in-transit:
(b) Coal 1 1,396
(c) Packing materials 15 31
Total (B) 20 1,432
Total inventories (A+B) 6,757 7,296
9. Trade receivables
Secured, considered good 751 1,157
Unsecured, considered good 5,096 3,477
Unsecured, doubtful 148 69
Sub-total 5,995 4,703
Less: Provision for doubtful trade receivables (148) (69)
Total trade receivables 5,847 4,634
The Company has used a practical expedient by computing the expected credit loss allowance for trade receivables
based on a provision matrix. The provision matrix takes into account historical credit loss experience and adjusted
for forward looking information. The expected credit loss allowance is based on the ageing of the days the
receivables are due and the rates as per the provision matrix. The ageing of the receivables is as follows:
As at As at
Particulars
March 31, 2018 March 31, 2017
Within the credit period 4,185 3,019
1-30 days past due 431 597
91-180 days past due 119 228
More than 180 days past due 849 238
Total 5,995 4,703
Movement in expected credit loss allowance
Balance at the beginning of the year 69 36
Movement in expected credit loss allowance on trade receivables 79 33
Balance at the end of the year 148 69

As at As at
Note Particulars March 31, 2018 March 31, 2017
10. Cash and cash equivalents
(a) Cash in hand 2 2
(b) Balances with banks 48 3,569
(c) Deposits with banks 4,000 12,500
(d) Cheques on hand - 45
Total cash and cash equivalents 4,050 16,116
11. Other bank balances
(a) Unpaid dividend account 64 58
(b) Deposits held as margin money/security for bank guarantees 1,533 811
Total other bank balances 1,597 869
Amount Amount
shares shares
12. Equity share capital
Authorised:
Equity shares of ` 10 each 2,20,00,000 2,200 2,20,00,000 2,200
Issued, subscribed and fully paid:
Equity shares ` 10 each 2,04,00,000 2,040 2,04,00,000 2,040
(a) Reconciliation of equity shares and amount outstanding at the beginning and at the end of the year:
Opening balance 2,04,00,000 2,040 1,73,88,014 1,739
Shares issued (Refer Note (d) below) - - 30,11,986 301
Closing balance 2,04,00,000 2,040 2,04,00,000 2,040
(b) Rights, preferences and restrictions attached to the equity shares:
The Company has only one class of equity shares having a par value of ` 10 each per share. Each holder of
equity shares is entitled to one vote per share. The dividend proposed by the Board of Directors is subject to
the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend.
In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining
assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to
the number of equity shares held by the shareholders.
(c) Details of shareholders holding more than 5% shares in the Company:

Name of the shareholder No. of % of No. of % of
shares holding shares holding
S. Veera Reddy 16,43,795 8.06% 16,43,795 8.06%
S. Aruna 13,69,545 6.71% 13,69,545 6.71%
Rachana Sammidi 11,64,280 5.71% 11,64,280 5.71%
Dr. S. Anand Reddy 13,03,524 6.39% 13,04,776 6.40%
S. Sreekanth Reddy 12,38,753 6.07% 12,38,753 6.07%
S. Vanajatha 9,90,769 4.86% 9,90,769 4.86%
HDFC Trustee Company Limited - Prudence Fund 14,16,000 6.94% 9,20,000 4.51%
AVH Resources India Private Limited 35,83,704 17.57% 35,83,704 17.57%

(d) (i) During the year 2016-17, the Company made a preferential allotment of 611,986 equity shares of ` 10
each at a premium of ` 790 per share aggregating ` 4,896 (including securities premium of ` 4,835) to the
promoter and non-promoter group. (Refer Note 39)
(ii) During the year 2016-17, the Company raised a sum of ` 17,280 (including securities premium of
` 17,040) by allotment of 2,400,000 equity shares of ` 10 each at a premium of ` 710 per share through
Qualified Institutions Placement. (Refer Note 39)
As at As at
13. Other equity
Capital reserve 35 35
Securities premium account 32,007 32,007
General reserve 3,598 3,598
Retained earnings 44,688 40,718
Reserve for equity instrument - 13
Other items of other comprehensive income 15 36
Total other equity 80,343 76,407
Movement in other equity is as follows:
Securities premium account
(i) Opening balance 32,007 10,503
(ii) Proceeds from issue of shares - 21,875
(iii) Share issue expenses - (568)
(iv) Income tax relating to issue of shares - 197
32,007 32,007
Retained earnings
(ii) Profit for the year 4,939 1,249
(iii) Transfer from Reserve for equity instruments 14 -
45,671 40,718
Less: Appropriations
(i) Dividend on equity shares 817 -
(ii) Tax on dividend 166 -
44,688 40,718
Reserve for equity instruments
(i) Opening balance 13 12
(ii) Fair valuation of unquoted equity instruments - 1
(iii) Gain on sale of investments in unquoted equity instruments 1 -
(iv) Transfer to Retained earnings (14) -
- 13
Other items of other comprehensive income
(i) Opening balance 36 41
(ii) Other comprehensive income for the year (21) (5)
15 36
Total 80,343 76,407

Nature of reserves
(a) Capital reserve
This represents subsidies received from the government.
(b) Securities premium account
Amounts received on issue of shares in excess of the par value has been classified as securities premium.
(c ) General reserve
This represents appropriation of profit by the company.
(d) Retained earnings
Retained earnings comprises of prior years undistributed earnings after taxes.
(e) Reserve for equity instruments
This represents fair valuation of equity instruments which is routed through other comprehensive income.
(f) Other items of other comprehensive income
Other items of other comprehensive income consist of fair value on fair value through other comprehensive income
financial assets and financial liabilities and re-measurement of net defined benefit liability/ asset.
As at As at
14. Non current borrowings* (Secured, at amortised cost)
Term loans from banks 13,783 14,829
Total non current borrowings 13,783 14,829
*Current maturities of non-current borrowings have been disclosed under the head “Other financial liabilities”.
Notes:
As at March 31, 2018
Loan Rate of
Bank Terms of repayment
outstanding interest
ICICI Bank Limited (Refer Note 1 below) 5,233 19 quarterly instalments 9.00%
Yes Bank Limited (Refer Note 3 below) 3,448 25 quarterly instalments 10.65%
Yes Bank Limited (Refer Note 2 below) 2,500 60 monthly instalments 9.95%
Yes Bank Limited (Refer Note 3 below) 400 16 quarterly instalments 9.95%
State Bank of India (Refer Note 4 below) 3,999 32 quarterly instalments 9.50%
Vehicle loans from various banks (Refer Note 5 below) 491 4 - 32 monthly instalments 9.00% to
12.50%
Less: Current maturities of non-current borrowings (2,787)
Total 13,783
Loan Rate of
State Bank of India (Refer Note 1 below) 1,016 18 monthly instalments 12.15%
Vehicle loans from various banks (Refer Note 5 below) 72 10 - 30 monthly instalments 9.00% to
12.50%
Less: Current maturities of non-current borrowings (2,647)
Total 14,829

1. The term loan from the bank is secured by pari-passu charge on the property, plant & equipment i.e., land,
buildings, plant & machinery and mining equipment owned by or belonging to the Company both present
and future, and by second charge on the current assets of the Company and are guaranteed by S. Veera
Reddy, Managing Director, Dr. S. Anand Reddy, Joint Managing Director and S. Sreekanth Reddy, Executive
Director.
2. The term loan was secured by pari-passu charge on the property, plant and equipment i.e., land, buildings,
plant and machinery and mining equipment owned by or belonging to the borrower company both present
and future, and by second charge on the current assets of the company and are guaranteed by Dr S. Anand
Reddy, Joint Managing Director and S. Sreekanth Reddy, Executive Director.
3. The term loan from the bank is secured by exclusive charge of all property, plant and equipment of the
grinding unit at Bayyavaram near Vishakhapatnam, Andhra Pradesh both present and future and second
pari-passu charge on current assets of the Company, both present and future and is guaranteed by Dr. S.
Anand Reddy - Joint Managing Director and S. Sreekanth Reddy - Executive Director.
4. The term loan from the bank is secured by exclusive charge on the assets of 6.00 MW Waste heat recovery
power plant, hypothecation of plant & machinery and is guaranteed by S.Veera Reddy - Managing Director,
Dr. S. Anand Reddy - Joint Managing Director and S. Sreekanth Reddy - Executive Director.
5. Vehicle Loans from various banks/financial institutions are secured by the hypothecation of specific assets
purchased from those loans.
Current borrowings (Secured, amortised at cost)
Cash credit facilities 9,577 5,800
Total current borrowings 9,577 5,800
Note: The Company has availed cash credit facilities from Banks. This facility is secured against stocks of raw
materials, finished goods, trade receivables, stores and spares, present and future, and by second charges
on property, plant and equipment of the Company and are guaranteed by S. Veera Reddy, Managing
Director, Dr. S. Anand Reddy, Joint Managing Director and S. Sreekanth Reddy, Executive Director.
The loans are repayable on demand and carries interest @ 7.65% p.a. to 13.20% p.a. (2016-17: 12.5%
p.a to 13.25% p.a)
As at As at
15. Other financial liabilities
Non-current
(a) Security deposits received 4,270 3,979
(b) Guarantee obligation 221 301
Total 4,491 4,280
Current
(a) Current maturities of non-current borrowings 2,787 2,647
(b) Interest accured but not due on borrowings 98 63
(c) Unpaid dividends 64 58
(d) Payables on purchase of property, plant and equipment 895 172
Total 3,844 2,940
Total other financial liabilities 8,335 7,220

As at As at
16. Provisions
(a) Gratuity (Refer Note 32) 302 199
(b) Compensated absences (Refer Note 32) 226 156
Total provisions 528 355
Non-current
(a) Gratuity 167 199
(b) Compensated absences 161 -
Total 328 199
Current
(a) Gratuity 135 -
(b) Compensated absences 65 156
Total 200 156
17. Trade payables
(a) Due to micro, small and medium enterprises (Refer Note 29) 3 5
(b) Due to others 7,838 8,415
Total trade payables 7,841 8,420
18. Other liabilities
Non-current
Liability for land restoration 179 178
Total 179 178
Current
(a) Advance from customers 2,730 2,185
(b) Statutory remittances 1,812 1,195
Total 4,542 3,380
Total other liabilities 4,721 3,558

19. Revenue from operations
(a) Revenue from sale of goods (Refer Note 41) 77,083 61,609
(b) Other operating income
- Income from trademark and staffing charges to subsidiary 360 360
- Sale of scrap 142 30
- Insurance claims - 1
- Others 16 -
Total revenue from operations 77,601 62,000
20. Other income
(a) Interest Income on financial assets at amortized cost 1,778 2,220
(b) Profit on sale of plant & equipment 9 41
(c) Liabilities no longer required written back 64 -
(d) Others 9 51
Total other income 1,860 2,312
21. Cost of materials consumed
Opening stock 493 309
Add: Purchases 10,614 7,398
Less: Closing stock 394 493
Total cost of materials consumed 10,713 7,214
Details of materials consumed:
Limestone 4,176 3,270
Laterite 1,844 865
Iron-ore sludge 535 679
Gypsum 1,166 1,116
Fly ash 1,235 1,093
Slag and others 1,757 191
Total 10,713 7,214
22. Changes in inventories of finished goods,
Inventories at the beginning of the year:
Finished goods 238 654
Work-in-progress 1,580 1,461
1,818 2,115
Inventories at the end of the year:
3,468 1,818
Net (increase)/ decrease (1,650) 297

23. Employee benefit expenses
(a) Salaries and wages, including bonus 3,864 3,130
(b) Contribution to provident and other funds 314 238
(c) Staff welfare expenses 316 267
Total employee benefit expenses 4,494 3,635
24. Finance cost
(a) Interest expense 2,551 2,531
Less: Amounts included in the cost of qualifying assets (87) (177)
(b) Other borrowing cost 509 691
Total finance cost 2,973 3,045
25. Depreciation and amortization expense
(a) Depreciation of property, plant and equipment 3,329 2,798
(b) Amortization of intangible assets 1 2
Total depreciation and amortization 3,330 2,800
26. Other expenses
Coal consumed 14,189 10,449
Power 8,498 7,140
Packing materials consumed 3,232 2,641
Stores and spares consumed 1,676 1,497
Repairs and maintenance
Plant & equipment 751 1,153
Buildings 15 30
Others 488 333
Freight and forwarding expenses 15,121 10,091
Selling expenses 2,152 1,541
Rent 176 174
Insurance 149 103
Rates and taxes 164 320
Expenditure on corporate social responsibility 95 47
Payment to auditors (Refer Note (i) below) 26 45
Impairment of non - financial assets - 88
Travelling and conveyance 244 217
Security services 119 103
Donations and contributions 41 54
Legal and other professional charges 224 232
Administrative expenses 182 204
Printing and stationery 38 19
Communication 66 62
Net Loss on foreign currency transactions and translation 1 1
Directors sitting fees 11 18

Miscellaneous expenses 25 30
Decrease of excise duty on inventory (Refer Note (ii) below) (18) (37)
Captive consumption of cement (280) (95)
Total other expenses 47,464 36,493
Note(i):
Payment to Auditors (net of service tax) comprises:
For audit 18 18
For limited review 6 6
For other services 1 19
Reimbursement of expenses 1 2
Total 26 45
Note(ii):
Consequent to implementation of Goods and Services tax effective
from July 01, 2017, excise duty on opening stock of finished goods as
at April 01, 2017 has been reversed.
27. Income tax expense
(a) Income tax recognized in the statement of profit & loss
Current tax:
In respect of current year 1,641 510
In respect of prior years - (41)
1,641 469
Deferred tax
In respect of current year origination and reversal of 1,789 686
temporary differences
MAT Credit (760) -
1,029 686
Total tax expense 2,670 1,155
(b) Reconciliation of estimated income tax expense at Indian
statutory income tax rate to income tax expense reported in
the statement of profit and loss is as follows:
Profit before tax 7,609 2,404
Indian Statutory Income Tax Rate 34.94% 34.61%
Expected income tax expense 2,659 832
Tax effect of expenses that are not deductible in 11 364
determining taxable profit
Tax effect on prior year expenses - (41)
Total Income Tax Expense 2,670 1,155
Total income tax expense 1,155 2,189

(c) Movement in deferred tax assets and liabilities for the year 2017-18:
Opening (Recognized) / Reversed Recognized Credit Reclassified Closing
balance reversed through other directly utilised from equity balance
Particulars through the comprehensive in equity to the
statement of income statement of
profit and loss profit
and loss
Property, plant and 5,626 1,814 - - - - 7,440
equipment and intangible
assets
Provision for employee (174) (10) 11 - - - (173)
benefits
Provision for doubtful (22) (28) - - - - (50)
trade receivables
MAT credit entitlement (2,230) (760) - - - - (2,990)
Others (197) - - - - - (197)
Total Deferred tax liability
3,003 1,016 11 - - - 4,030
(Net)
Movement in deferred tax assets and liabilities for the year 2016-17:
profit and loss profit
and loss
Property, plant and 5,284 342 - - - - 5,626
equipment and intangible
assets
Provision for employee (154) (23) 3 - - - (174)
benefits
Provision for doubtful - (22) - - - - (22)
trade receivables
MAT credit entitlement (2,452) - - - 222 - (2,230)
Others (389) - - (197) - 389 (197)
Total Deferred tax liability
(Net) 2,289 297 3 (197) 222 389 3,003
(d) Current tax assets and liabilities

As at As at
Advance income tax 71 100
Current tax liabilities (232) (62)
Net current tax assets/(liabilities) (161) 38

28. Contingent liabilities, corporate guarantees and capital commitments
a) Contingent Liabilities:
Based on legal opinion/advice obtained, no financial implication to the Company with respect to the
following cases is perceived as on the Balance Sheet date:
i) Claims against the Company not acknowledged as debt:
As at As at
Direct tax matters 1,190 1,199
Indirect tax matters (Refer Note (ii) below) 1,850 1,896
Others 428 428
ii) The Finance Minister of Government of India has announced in the budget for the year 2010-11,
imposition of clean energy cess as a duty of excise on coal, lignite and peat. This came into force with
effect from July 1, 2010. As advised by the legal experts, the Company took CENVAT credit pertaining
to clean energy cess on coal for an amount of ` 834 (As at March 31, 2017: ` 834) from July 2010 to
March 2016. The Department of Central Excise issued an order and asked to reverse the amount on
the ground that the clean energy cess is not specified tax for input CENVAT credit, thus the credit
availed on cess is irregular. Based on department’s order, the amount of ` 823 was reversed, but under
protest. The balance of ` 11 pertains to the penalty imposed by the department and disclosed in
contingent liabilities under indirect taxes. The matter is pending before the Department. Credit will be
taken again once the issue is settled in favour of the Company.
b) Corporate Guarantees:
The Company furnished a corporate guarantee of ` 15,000 to IDBI Trusteeship Services Limited to secure
the 1,500 Non-Convertible Debentures (` 10 lakhs each) aggregating to ` 15,000 (2016-17: ` 15,000)
issued by its wholly-owned subsidiary, Sagar Cements (R) Limited, to International Finance Corporation
and a further guarantee to secure the credit facilities aggregating ` 6,000 (2016-17: ` 14,900) availed by
the said subsidiary from its lenders.
c) Capital Commitments:
As at As at
Estimated amount of contracts remaining 10,628 6,448
to be executed on capital account and
not provided for (net of capital advance)
29. Disclosures required under Section 22 of the Micro, Small and Medium Enterprises Development Act, 2006:
Dues to Micro, Small and Medium Enterprises have been determined to the extent such parties have been identified
on the basis of information collected by the Management. This has been relied upon by the auditors. The amount
of dues payable to micro, small and medium enterprises are as follows:

As at As at
The principal amount and interest due thereon remaining unpaid to any
supplier as at the end of the financial year 3 5
The amount of interest paid by the buyer under the Act along with the
amounts of payment made to the supplier beyond the appointed day
during each accounting year - -
The amount of interest due and payable for the year (where the principal
has been paid but interest under the Act not paid) - -
The amount of interest accrued and remaining unpaid at the end of the
accounting year - -
The amount of further interest due and payable even in the succeeding
year, until such date when the interest dues as above are actually paid to
the small enterprise, for the purpose of disallowance as a deductible
expenditure under section 23. - -
30. Financial Instruments:

The significant accounting policies, including the criteria for recognition, the basis for measurement and the basis
on which income and expenses are recognized, in respect of each class of financial asset, financial liability and
equity instrument are disclosed in Note 1(b)(xiv) to the financial statements.
A. Capital Management
The Company manages its capital to ensure that it will be able to continue as going concern while maximizing
the return to stakeholders through the optimization of the debt and equity balances.The capital structure of
the Company consists of net debt (borrowings as detailed in Notes 14 and 15 offset by cash and bank
balances) and total equity of the Company.The Company is not subject to any externally imposed capital
requirements.The Company’s management reviews the capital structure of the Company on monthly basis.
As part of this review, the management considers the cost of capital and the risks associated with each class
of capital.
Gearing ratio
The gearing ratio at the end of the reporting period was as follows:
As at As at
Description March 31, 2018 March 31, 2017
Debt (Refer Note below) 26,245 23,339
Cash and bank balances 5,647 16,985
Net debt 20,598 6,354
Total equity 82,383 78,447
Net debt to equity ratio 0.250 0.081
Note: Debt is defined as current and non-current borrowings as described in Notes 14 and 15.

B. Financial Assets and Liabilities
The carrying value of financial instruments by categories as on balance sheet date is as follows:
As at As at
Financial Assets
Measured at amortised cost
(i) Investments 26,595 25,759
(ii) Loans 2,500 -
(iii) Trade receivables 5,847 4,634
(iv) Cash and cash equivalents 4,050 16,116
(v) Other bank balances 1,597 869
(vi) Other financial assets 5,635 5,657
Sub total 46,224 53,035
Measured at FVTOCI
(i) Investments - 28
Sub total - 28
Total Financial assets 46,224 53,063
As at As at
Financial Liabilities
(i) Borrowings 26,147 23,276
(ii) Trade payables 7,841 8,420
(iii) Other financial liabilities 5,548 4,573
Total Financial liabilities 39,536 36,269
There are no financial assets and financial liabilities measured at fair value through profit and loss.
C. Fair value hierarchy
Valuation technique and key inputs
Level 1 - Quoted prices (unadjusted) in an active markets for identical assets or liabilities.
Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or
liability, either directly(i.e. as prices) or indirectly (i.e. derived from prices).
Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable
inputs).
Quantitative disclosures of fair value measurement hierarchy for financial instruments:
Fair value measurement at the end of year using level 3
As at As at
Assets
Investment in unquoted equity shares (Refer Note 4) - 28
There have been no transfers among Level 1, Level 2 and Level 3 during the year.
The fair values of the unquoted equity shares had been estimated using a DCF model. The valuation
requires management to make certain assumptions about the model inputs, including forecast cash flows,
earnings growth, discount rate, and probabilities of the various estimates within the range used in
management’s estimate of fair value for these unquoted equity investments. During the current year, the
Company sold the above unquoted equity shares.

Valuation inputs and relationships to fair value:
The following table summarizes the quantitative information about the significant unobservable inputs
used in Level 3 fair value measurements, being investments in unquoted equity shares:
Fair value Significant Sensitivity of the
as at as at unobservable Valuation process inputs to fair value
March 31, 2018 March 31, 2017 inputs
- 28 Earnings Earnings growth factor for unlisted Any increase in the
growth rate equity shares are estimated based earnings growth rate
on the market information of would result in an
similar type of companies and increase in fair value.
also considering the economic
environment impact.
Discount rate Discount rates are determined Any increase in the
using a capital asset pricing model discount rate would
to calculate a pre-tax rate that result in a decrease in
reflects the current market the fair value.
assessments of the time value of
money and risk specific to that asset.
D. Financial risk management objectives:
The Company’s corporate finance function monitors and manages the financial risks relating to the operations
of the Company through internal risk reports which analyze exposures by degree and magnitude of risks.
These risks include market risk (includes interest rate risk), credit risk and liquidity risk.The Company seeks
to minimize the effects of these risks through continuous monitoring on day to day basis. The Company
does not enter into or trade financial instruments, including derivative financial instruments, for speculative
purposes.The corporate finance function reports monthly to the Company’s management which monitors
risks and policies implemented to mitigate risk exposures.
i) Market risk:
The Company’s activities expose it primarily to the financial risk of changes in interest rates. The
Company seeks to minimize the effect of this risk through continuous monitoring and take appropriate
steps to mitigate the aforesaid risk.
Interest rate risk management:
The Company is exposed to interest rate risk because it borrows funds at both fixed and floating
interest rates. The risk is managed by the Company by maintaining an appropriate mix between fixed
and floating rate borrowings.
Interest rate sensitivity analysis
The sensitivity analysis below have been determined based on the exposure to interest rates at the end
of the reporting period. For floating rate liabilities, the analysis is prepared assuming the amount of the
liability outstanding at the end of the reporting period was outstanding for the whole year. A 50 basis
point increase or decrease is used when reporting interest rate risk internally to key management
personnel and represents management’s assessment of the reasonably possible change in interest rates.
If interest rates had been 50 basis points higher/lower and all other variables were held constant, the
Company’s Profit for the year ended March 31, 2018 would decrease/increase by ` 131 (for the year
ended March 31, 2017: decrease/increase by ` 116). This is mainly attributable to the company’s
exposure to interest rates on its variable rate borrowings.
ii) Credit risk management:
Credit risk refers to the risk that a counter party will default on its contractual obligations resulting in
financial loss to the Company. The Company has adopted a policy of dealing with creditworthy
counterparties and obtaining sufficient collateral, where appropriate, as a means of mitigating the risk

of financial loss from defaults. Credit exposure is controlled by counterparty limits that are reviewed
and approved by the management.
Trade receivables consist of a large number of customers, spread across diverse industries and
geographical areas. Ongoing credit evaluation is performed on the financial condition of accounts
receivable.
The Company does not have significant credit risk exposure to any single counterparty. Concentration
of credit risk to any counterparty did not exceed 5% of gross monetary assets at any time during the
year.
In addition, the Company is exposed to credit risk in relation to financial guarantees given to banks by
the Company on behalf of its subsidiary. The Company’s maximum exposure in this respect is the
maximum amount the Company could have to pay if the guarantee is called on (Refer Note 28).
E. Liquidity risk management:
Financing facilities:
As at As at
Secured bills acceptance facility, reviewed annually
- amount used 1,262 1,378
- amount unused 938 1,822
Total 2,200 3,200
Secured bank overdraft facility reviewed annually and
payable at call
- amount unused 2,623 3,900
Total 12,200 9,700
Secured bank loan facilities with varied maturity dates and
which may be extended by mutual agreement
- amount used 16,570 17,476
- amount unused 4,002 869
Total 20,572 18,345
F. The Company does not have any derivative instruments or unhedged foreign currency exposures as on the
balance sheet date.
31. Disclosure as per Regulation 34(3) of the SEBI (Listing obligation and disclosure requirements) Regulations, 2015
The details of loans and advances to subsidiary are given below:-
Maximum amount outstanding
Balance as at
Particulars during the year ended
March 31, 2018 March 31, 2017 March 31, 2018 March 31, 2017
Sagar Cements (R) Limited 5,479 8,969 6,542 22,540

32. Employee benefits:
The employee benefit schemes are as under:
(i) Defined contribution plan:
Provident Fund
The Company makes provident fund contributions which are defined contribution plans for qualifying
employees. Under the scheme, the Company is required to contribute a specified percentage of the payroll
costs to fund the benefits. These contributions are made to the Fund administered and managed by the
Government of India. The Company’s monthly contributions are charged to the Statement of Profit and
Loss in the period they are incurred. Total expense recognized during the year aggregated ` 196 (2016-17:
` 156).
Superannuation Fund
Few directors receive benefit under a Superannuation scheme which is a defined contribution scheme
wherein the director has an option to choose the percentage of contribution in between 5% to 15% of the
basic salary of the covered employee. These contributions are made to a fund administrated by Life Insurance
Corporation of India. The Company’s monthly contributions are charged to the Statement of Profit and Loss
in the period they are incurred. Total expense recognized during the year aggregated ` 34 (2016-17: ` 48).
Employee State Insurance
The Company makes employee state insurance contributions which are defined contribution plans for
qualifying employees. Under the scheme, the Company is required to contribute a specified percentage of
the payroll costs to fund the benefits. These contributions are made to the funds administered and managed
by the Government of India. The company’s monthly contributions are charged to the Statement of Profit
and Loss in the period they are incurred. The total expense recognized during the year aggregated ` 10
(2016-17: ` 10).
(ii) Defined benefit plan:
Gratuity:
In accordance with the ‘Payment of Gratuity Act, 1972’ of India, the Company provides for gratuity, a
defined retirement benefit plan (the ‘Gratuity Plan’) covering eligible employees. Liabilities with regard to
such gratuity plan are determined by an independent actuarial valuation and are charged to the Statement
of Profit and Loss in the period determined. The gratuity plan is administered by Life Insurance Corporation
of India.
The following table sets out the Defined Benefit Plan - as per actuarial valuation as at March 31, 2018 and
March 31, 2017:
a) The principal assumptions used for the purposes of actuarial valuations were as follows:
a) Mortality table (LIC) IALM 2006-08 IALM 2006-08
(Mod.) (ultimate) (ultimate)
b) Discounting rate (p.a.) 8% 7.90%
c) Expected rate of return on plan asset 7.65% / 8.05% 8.25%
d) Expected average remaining working lives of employees 16.05 years 16.08 years
e) Rate of escalation in salary 5% 5%
f) Attrition rate 4% 4%

b) Components of defined benefit costs recognized in profit and loss and other comprehensive income:
Amount recognized in statement of profit and loss
in respect of defined benefit plan is as follows:
Current service cost 71 45
Interest expense 48 47
Acquisition adjustment/ New policy/ Premium adjustment - 1
Expected return on plan assets (35) (33)
Defined benefit cost included in profit and loss 84 60
Re-measurement effects recognized in
Other Comprehensive Income (OCI)
Actuarial losses 32 8
Components of defined benefit costs recognized in OCI 32 8
c) Key Results - Reconciliation of fair value of assets and obligations:
Description
March 31, 2018 March 31, 2017
Present value of funded defined benefit obligations 765 655
Fair value of plan assets (463) (456)
Net liability arising from defined benefit obligation 302 199
d) Movement in present value of defined benefits obligation are as follows:
Description
March 31, 2018 March 31, 2017
Defined benefit obligation at the beginning of the year 655 606
Interest cost 48 47
Re-measurements - Actuarial losses 29 8
Benefits paid (38) (51)
Defined benefit obligation at the year end 765 655
e) Movement in fair value of plan assets are as follows:
Description
March 31, 2018 March 31, 2017
Opening fair value of the plan assets 456 435
Expected return on plan assets 35 33
Contributions from the employer 11 40
Re-measurement – Actuarial losses (3) -
Other adjustments 2 (1)
Fair value of plan asset at the year end 463 456

f) Sensitivity Analysis:
Sensitivity to significant actuarial assumptions is computed by varying one actuarial assumption used for
the valuation of the defined benefit obligation by one percentage, keeping all other actuarial assumptions
constant.
Increase Decrease Increase Decrease
Effect of 1% change in assumed discount rate (694) 772 (582) 687
Effect of 1% change in assumed salary rate 775 (690) 663 (596)
Effect of 1% change in assumed attrition rate 738 (723) (582) 687
Compensated absences:
The accrual for unutilized leave is determined for the entire available leave balance standing to the
credit of the employees at the period-end. The value of such leave balance eligible for carry forward, is
determined by an independent actuarial valuation and charged to the statement of profit and loss in the
period determined.
The key assumptions as provided by an independent actuary, used in the computation of provision for
compensated absences are as given below:
Discount Rate 8% -
Salary escalation rate 5% -
Attrition rate 4% -
Mortality tables IALM 2006-08
(Mod.) (ultimate) -
The Company has made provision for compensated absences based on the actuarial valuation for the
financial year 2017-18, consequent to change in leave policy during the year.
33. The Company is exclusively engaged in the business of cement and cement related products. As per Ind AS
108"Operating Segments”, specified under Section 133 of the Companies Act, 2013, there are no reportable
business and geographical segment applicable to the Company.

34. Related Party Disclosure:
The list of related parties of the Company is given below:
Name Relationship
Sagar Cements (R) Limited Subsidiary Company
Key managerial personnel (KMP):
Name Relationship
Swaminatha Reddy Onteddu Chairman of the Board of Directors
S. Veera Reddy Managing Director (MD)
Dr. S. Anand Reddy Joint Managing Director (JMD)
S.Sreekanth Reddy Executive Director (ED)
Kolappa Thanu Pillai Director
T.Nagesh Reddy Nominee Director
Valliyur Hariharan Ramakrishnan Director
Rachana Sammidi Director
John Eric Fernand Pascal Cesar Bertrand Director
K.Prasad Chief Financial Officer (CFO)
R.Soundararajan Company Secretary (CS)
Relatives of KMP:
Name Relationship
S. Vanajatha Wife of Shri S. Veera Reddy
Panchavati Polyfibres Limited Enterprise where KMP along with their relatives exercise significant
influence
Sagar Power Limited Enterprise where KMP along with their relatives exercise significant
influence
RV Consulting Services Private Limited Enterprise where KMP along with their relatives exercise significant
influence
Sagarsoft (India) Limited Enterprise where KMP along with their relatives exercise significant
influence
Summary of the transactions and balances with the above parties are as follows:
Year Ended Year Ended
Nature of Transaction Party Name March 31, 2018 March 31, 2017
Purchase of raw materials Panchavati Polyfibres Limited 3,642 3,003
Purchase of power Sagar Cements (R) Limited 3,793 1,749
Purchase of scrap Sagar Cements (R) Limited 8 -
Sale of scrap Sagar Cements (R) Limited 10 10
Rent expenses paid Dr. S. Anand Reddy 29 29
S. Sreekanth Reddy 28 28
S. Vanajatha 28 28
Total 85 85
Services rendered Sagar Cements (R) Limited – 360 360
Trademark and staffing charges
Services received Sagarsoft (India) Limited – Staffing resource 26 33
RV Consulting Services Private Limited – 2,121 890
Consultancy for capital items
Total 2,147 923

Nature of Transaction Party Name
March 31, 2018 March 31, 2017
Reimbursement of Sagarsoft (India) Limited 12 6
expenses received RV Consulting Services Private Limited 9 6
Sagar Power Limited 10 6
Total 31 18
Dividend income Panchavati Polyfibres Limited (` 26,000 - -
for the current year and previous year)
Interest earned on loan, Sagar Cements (R) Limited 1,181 2,005
corporate guarantee and
cumulative redeemable
preference shares
Loans and advances given Sagar Cements (R) Limited – Loan 2,500 -
Sagar Cements (R) Limited – Advance 5,355 5,329
Total 7,855 5,329
Repayment received against Sagar Cements (R) Limited - 6,799
loans and advances given
Conversion of loan to 8% Sagar Cements (R) Limited (Refer Note 4) - 17,200
cumulative redeemable
preference shares
Compensation to key managerial personnel is as follows:
For the year ended
Nature of Transaction Party name March 31, 2018 March 31, 2017
Short-term benefits MD, JMD, ED, CS and CFO 699 403
Other benefits Chairman, MD, JMD, ED, CS, CFO and
non-executive and Independent Directors 11 67
Outstanding balances:
As at As at
Nature of the balance Party Name
March 31, 2018 March 31, 2017
Loan given Sagar Cements (R) Limited 2,500 -
Advances given Sagar Cements (R) Limited 2,979 1,763
RV Consulting Services Private Limited 4 -
Total 3,690 2,459
Interest accrued but not due Sagar Cements (R) Limited 3,852 3,614
Trade payables Sagarsoft (India) Limited - 2
Panchavati Polyfibres Limited 391 111
Total 391 113
Payable on purchase of RV Consulting Services Private Limited - 32
property, plant and
equipment
Rent payable Dr. S. Anand Reddy 2 2
S. Vanajatha 2 2
Total 6 6
Corporate guarantee Sagar Cements (R) Limited (Refer Note 28) 21,000 29,900
8% Cumulative redeemable Sagar Cements (R) Limited 8,042 7,206
preference shares

35. Operating Lease
The Company has taken various residential premises, office premises and warehouses under operating lease
agreements. These are generally cancellable and are renewable by mutual consent on mutually agreed terms. The
operating lease expense recognized in the Statement of Profit and Loss aggregate ` 176 (2016-17 ` 174)
36. Earnings per share
Particulars
March 31, 2018 March 31, 2017
Profitafter tax (` in lakhs) 4,939 1,249
Weighted average number of equity shares outstanding 20,400,000 17,891,681
Earnings per share:
Basic and Diluted (in `) 24.21 6.98
37. Corporate Social Responsibility (CSR) activities:

As per Section 135 of the Companies Act, 2013, a Corporate Social Responsibility (CSR) committee has been
formed by the Company. A company meeting the applicability threshold of this section needs to spend at least
2% of its average net profit for the immediately preceding three financial years on CSR activities. The areas for
CSR activities are promoting sports, education, adoption of schools, medical and other social projects. All these
activities have been covered under Schedule VII to the Companies Act, 2013. The Company has spent an amount
of ` 95 (Previous year ` 47) towards CSR activities based on the recommendations of CSR Committee constituted
by the Board. Expenses incurred on CSR activities are charged to the Statement of Profit and Loss under Other
Expense.
38. The Company has certain mining leases granted by the Government for limestone mining in Pedaveedu Village,
Mattampally up to August 17, 2024.
39. During the year 2016-17, the Company raised amounts of ` 4,896 and ` 17,280 through preferential issue of
equity shares and Qualified Institutional Placement (QIP) issue respectively. The objective of raising funds through
preferential and QIP issue was to meet the capital expenditure requirements for expansion of the grinding unit in
Bayyavaram to 1.5 million MT and to setting up a coal based captive power unit of 18 MW capacity at its plant in
Matampally, Nalgonda District, for other general corporate purposes and any other purposes as may be permissible
under applicable law. A part of the amount was used for the purpose for which it was raised and the balance
amount is invested in fixed deposits pending utilization, as at March 31, 2018 and March 31, 2017.
40. Dividends
The Board of Directors declared and paid an interim dividend of ` 2.50 per equity share (25%) on 2,04,00,000
equity shares of face value of ` 10 each during the year. Further, a final dividend of ` 1.50 (2016-17: ` 1.50) per
equity share (15%) for the year 2017-18 on May 29, 2018 has been recommended by the Board of Directors,
subject to the approval of shareholders at the Annual General Meeting. The dividends declared by the Company
are based on the profits available for distribution as reported in the financial statements of the Company.
41. The Government of India introduced the Goods and Services Tax (GST) with effect from July 01, 2017. Accordingly,
in compliance with Indian Accounting Standards (Ind AS) 18- ‘Revenue’, Revenue from operations for the year
ended March 31, 2018 is net of GST. For the year ended March 31, 2017, Revenue from operations includes
excise duty which is now subsumed in GST.
42. These financial statements were approved by the Company’s Board of Directors on May 29, 2018.
43. Previous year’s figures have been regrouped/ reclassified wherever necessary to correspond with the current
year’s classification/ disclosures.

S.Veera Reddy Dr.S.Anand Reddy S.Sreekanth Reddy
Managing Director Joint Managing Director Executive Director
Place: Hyderabad K.Prasad R.Soundararajan

Date: May 29, 2018 Chief Financial Officer Company Secretary

INDEPENDENT AUDITORS’ REPORT
To The Members of Sagar Cements Limited
Report on the Consolidated Financial Statements
We have audited the accompanying consolidated financial statements of Sagar Cements Limited (hereinafter referred to
as “the Company”) and its subsidiary (the Company and its subsidiary together referred to as “the Group”),comprising the
Consolidated Balance Sheet as at March 31, 2018, the Consolidated Statement of Profit and Loss (including other
comprehensive income), the Consolidated Cash Flow Statement, the Consolidated Statement of Changes in Equity, for the
year then ended, and a summary of the significant accounting policies and other explanatory information (hereinafter
referred to as “the consolidated financial statements”).
Management’s Responsibility for the Consolidated Financial Statements
The Company’s Board of Directors is responsible for the preparation of these consolidated financial statements in terms of
the requirements of the Companies Act, 2013 (hereinafter referred to as “the Act”) that give a true and fair view of the
consolidated financial position, consolidated financial performance including other comprehensive income, consolidated
cash flows and consolidated statement of changes in equity of the Group including its Associates and Joint ventures in
accordance with the Indian Accounting Standards (Ind AS) prescribed under section 133 of the Act read with the Companies
(Indian Accounting Standards) Rules, 2015, as amended, and other accounting principles generally accepted in India.
The respective Board of Directors of the companies included in the Group are responsible for maintenance of adequate
accounting records in accordance with the provisions of the Act for safeguarding the assets of the Group and for preventing
and detecting frauds and other irregularities; the selection and application of appropriate accounting policies; making
judgments and estimates that are reasonable and prudent; and the design, implementation and maintenance of adequate
internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting
records, relevant to the preparation and presentation of the consolidated financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error, which have been used for the purpose of preparation
of the consolidated financial statements by the Directors of the Company, as aforesaid.
Our responsibility is to express an opinion on these consolidated financial statements based on our audit. In conducting
our audit, we have taken into account the provisions of the Act, the accounting and auditing standards and matters which
are required to be included in the audit report under the provisions of the Act and the Rules made thereunder.
We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those
Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance
about whether the consolidated financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the consolidated
financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of
material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant to the Company’s preparation of the consolidated
financial statements that give a true and fair view in order to design audit procedures that are appropriate in the
circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company’s Board of Directors, as well as evaluating the overall presentation of
the consolidated financial statements.
We believe that the audit evidence obtained by us, is sufficient and appropriate to provide a basis for our audit opinion on
the consolidated financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid consolidated
financial statements give the information required by the Act in the manner so required and give a true and fair view in
conformity with Ind AS and other accounting principles generally accepted in India, of the consolidated state of affairs of
the Group as at March 31, 2018, and their consolidated profit, consolidated total comprehensive income, their consolidated
cash flows and consolidated statement of changes in equity for the year ended on that date.

Report on Other Legal and Regulatory Requirements
As required by Section 143(3) of the Act, based on our audit, we report, to the extent applicable that:
(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief
were necessary for the purposes of our audit of the aforesaid consolidated financial statements.
(b) In our opinion, proper books of account as required by law relating to preparation of the aforesaid consolidated
financial statements have been kept so far as it appears from our examination of those books.
(c) The Consolidated Balance Sheet, the Consolidated Statement of Profit and Loss (including Other Comprehensive
Income), the Consolidated Cash Flow Statement and Consolidated Statement of Changes in Equity dealt with by
this Report are in agreement with the relevant books of account maintained for the purpose of preparation of the
consolidated financial statements.
(d) In our opinion, the aforesaid consolidated financial statements comply with the Indian Accounting Standards
prescribed under Section 133 of the Act.
(e) On the basis of the written representations received from the directors of the Company as on March 31, 2018 taken
on record by the Board of Directors of the Company and the reports of the statutory auditors of its subsidiary
company, incorporated in India, none of the directors of the Group companies, incorporated in India is disqualified
as on March 31, 2018 from being appointed as a director in terms of Section 164 (2) of the Act.
(f) With respect to the adequacy of the internal financial controls over financial reporting and the operating effectiveness
of such controls, refer to our separate Report in “Annexure A”, which is based on the auditors’ reports of the
Company, subsidiary company incorporated in India. Our report expresses an unmodified opinion on the adequacy
and operating effectiveness of the Company’s/subsidiary company’s internal financial controls over financial reporting.
(g) With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the Companies
(Audit and Auditor’s) Rules, 2014, as amended, in our opinion and to the best of our information and according to
the explanations given to us:
i. The consolidated financial statements disclose the impact of pending litigations on the consolidated financial
position of the Group.
ii. The Group did not have any material foreseeable losses on long-term contracts including derivative contracts.
iii. There has been no delay in transferring amounts required to be transferred, to the Investor Education and
Protection Fund by the Company.
Ganesh Balakrishnan
Partner

ANNEXURE “A” TO THE INDEPENDENT AUDITORS’ REPORT
(Referred to in paragraph (f) under ‘Report on Other Legal and Regulatory Requirements’section of our report of even
date)
Report on the Internal Financial Controls Over Financial Reporting under Clause (i) of Sub-section 3 of Section 143 of
the Companies Act, 2013 (“the Act”)
In conjunction with our audit of the consolidated financial statements of the Company as of and for the year ended March
31, 2018, we have audited the internal financial controls over financial reporting of Sagar Cements Limited (hereinafter
referred to as “Company”) and its subsidiary company,which is incorporated in India, as of that date.
Management’s Responsibility for Internal Financial Controls
The respective Board of Directors of the Company and its subsidiary company, which is incorporated in India, are
responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting
criteria established by the respective Companies considering the essential components of internal control stated in the
Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered
Accountants of India (ICAI). These responsibilities include the design, implementation and maintenance of adequate
internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business,
including adherence to the respective company’s policies, the safeguarding of its assets, the prevention and detection of
frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial
information, as required under the Companies Act, 2013.
Our responsibility is to express an opinion on the internal financial controls over financial reporting, based on our audit.
We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial
Reporting (the “Guidance Note”) issued by the Institute of Chartered Accountants of India and the Standards on Auditing,
prescribed under Section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial
controls. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform
the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was
established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls
system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial
reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk
that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based
on the assessed risk. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of
material misstatement of the consolidated Ind AS financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion
on the internal financial controls system over financial reporting of the Company and its subsidiary company,which is
incorporated in India.
Meaning of Internal Financial Controls Over Financial Reporting
A company’s internal financial control over financial reporting is a process designed to provide reasonable assurance
regarding the reliability of financial reporting and the preparation of consolidated Ind AS financial statements for external
purposes in accordance with generally accepted accounting principles. A company’s internal financial control over financial
reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail,
accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance
that transactions are recorded as necessary to permit preparation of consolidated Ind AS financial statementsin accordance
with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in
accordance with authorisations of management and directors of the company; and (3) provide reasonable assurance
regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the company’s assets that
could have a material effect on the consolidated Ind AS financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of
collusion or improper management override of controls, material misstatements due to error or fraud may occur and not
be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods
are subject to the risk that the internal financial control over financial reporting may become inadequate because of
changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion to the best of our information and according to the explanations given to us, Company and its subsidiary
company,which is incorporated in India, have, in all material respects, an adequate internal financial controls system
over financial reporting and such internal financial controls over financial reporting were operating effectively as at
March 31, 2018, based onthe criteria for internal financial control over financial reporting established by the respective
companies considering the essential components of internal control stated in the Guidance Note.
Ganesh Balakrishnan
Partner

CONSOLIDATED BALANCE SHEET

Consolidated Balance Sheet as on March 31, 2018 All amounts are in ` lakhs unless otherwise stated
As at As at
Particulars Note March 31, 2018 March 31, 2017
ASSETS
Non-current assets
(a) Property, plant and equipment 2 98,500 93,125
(b) Capital work-in-progress 12,538 5,534
(c) Goodwill 3,873 3,873
(d) Intangible assets 3 2,882 3,057
(e) Financial assets
(i) Investments 4 - 28
(ii) Other financial assets 5 1,584 1,924
(f) Advance income tax 26 71 100
(g) Deferred tax assets 26 3,188 2,463
(h) Other non-current assets 6 5,260 2,436
Total Non-current assets (1) 1,27,896 1,12,540
Current assets
(a) Inventories 7 9,491 11,035
(b) Financial assets
(i) Trade receivables 8 9,258 8,083
(ii) Cash and cash equivalents 9 4,100 16,178
(iii) Bank balances other than (ii) above 10 1,710 869
(iv) Other financial assets 5 382 693
(c) Other current assets 6 4,223 3,922
Total Current assets (2) 29,164 40,780
Total Assets (1+2) 1,57,060 1,53,320
EQUITY AND LIABILITIES
Equity
(a) Equity share capital 11 2,040 2,040
(b) Other equity 12 75,880 74,256
Total Equity (1) 77,920 76,296
Liabilities
Non-current liabilities
(i) Borrowings 13 32,972 34,967
(ii) Other financial liabilities 14 5,065 4,587
(c) Deferred tax liabilities (Net) 26 4,030 3,003
(d) Other non-current liabilities 17 229 229
Total Non-current liabilities (2) 42,690 43,022
Current liabilities
(i) Borrowings 13 11,526 9,561
(ii) Trade payables 16 13,680 14,777
(iii) Other financial liabilities 14 5,077 5,079
(c) Current tax liabilities (Net) 26 232 62
(d) Other current liabilities 17 5,707 4,315
Total Current liabilities (3) 36,450 34,002
Total Liabilities (4=2+3) 79,140 77,024
Total Equity and Liabilities (1+4) 1,57,060 1,53,320
See accompanying notes forming part of the consolidated financial statements
Ganesh Balakrishnan K.Prasad R.Soundararajan
Partner Chief Financial Officer Company Secretary

CONSOLIDATED STATEMENT OF PROFIT AND LOSS

Consolidated Statement of Profit and Loss for the year ended March 31, 2018
Particulars Note
March 31, 2018 March 31, 2017
I Revenue from operations 18 1,07,772 94,159
II Other income 19 730 352
III Total Income (I + II) 1,08,502 94,511
IV Expenses
(a) Cost of materials consumed 20 14,194 10,310
(b) Purchase of stock-in-trade 1,726 -
(c) Changes in inventories of finished goods, 21 (1,409) 135
(d) Excise duty 39 3,963 12,775
(e) Employee benefit expenses 22 5,129 4,311
(f) Finance costs 23 5,929 6,208
(g) Depreciation and amortisation expense 24 5,362 4,759
(h) Other expenses 25 69,041 55,591
Total Expenses 1,03,935 94,089
V Profit before tax (III - IV) 4,567 422
VI Tax expense
(a) Current tax 26 1,641 469
(b) Deferred tax 26 300 345
Total Tax expense 1,941 814
VII Profit/ (Loss) after tax (V - VI) 2,626 (392)
VIII Other comprehensive income
(i) Items that will not be reclassified to profit or loss
(a) Remeasurement of the defined benefit plan (20) (37)
(b) Equity instruments through - 1
(c) Gain on sale of investments in 1 -
unquoted equity instruments
(ii) Income tax relating to items that will not be 7 13
reclassified to profit or loss
(12) (23)
IX Total comprehensive income for the period (VII + VIII) 2,614 (415)
X Earnings per share (Face value of ` 10 per share)
Basic and Diluted 36 12.87 (2.19)
Ganesh Balakrishnan K.Prasad R.Soundararajan
Partner Chief Financial Officer Company Secretary

Consolidated statement of changes in equity for the year ended March 31, 2018
A. Equity share capital
Particulars Amount
Changes in equity share capital during the year 301
Changes in equity share capital during the year -
B. Other equity
Items of other
Reserves and surplus comprehensive income
Capital Securities General Retained Equity Other Total
Particulars reserve premium reserve earnings instruments items of other
account through other other equity
comprehensive comprehensive
income income
Loss for the year - - - (392) - - (392)
Issue of equity shares - 21,875 - - - - 21,875
Share issue expenses (net of tax ` 197) - (371) - - - - (371)
(net of tax ` 8)
Other adjustments - - - (1) - - (1)
Dividend on equity shares (including tax) - - - (983) - - (983)
Other comprehensive income for the year - - - - - (13) (13)
(net of tax ` 7)
Gain on sale of investments in unquoted - - - - 1 - 1
equity instruments
Transfer from Reserve for equity instruments - - - 14 (14) - -
Other adjustments - - - (7) - - (7)
Balance as at March 31, 2018 35 32,007 3,598 40,236 - 4 75,880
R.Soundararajan
Company Secretary
Date : May 29, 2018 Date: May 29, 2018

CONSOLIDATED CASH FLOW STATEMENT

Consolidated statement of cash flows for the year ended March 31, 2018
A. Cash flow from operating activities
Profit/ (Loss) after tax for the year 2,626 (392)
Adjustments for
Tax expense 1,941 814
Depreciation and amortization expense 5,362 4,759
Finance costs 5,929 6,208
Interest income (650) (260)
Liabilities no longer required written off (64) -
Provision for doubtful trade and other receivables, 99 33
loans and advances
Profit on sale of plant and equipment (7) (41)
Dividend income (` 26,000 in the current year and - -
previous year)
Impairment of non-financial asset - 12,610 88 11,601
Operating profit before working capital changes 15,236 11,209
Changes in working capital:
Adjustments for (increase) / decrease in operating assets:
Trade receivables (1,274) (22)
Inventories 1,544 (1,983)
Financial assets 272 2,654
Other assets (313) 229 (548) 101
Adjustments for increase/(decrease) in operating liabilities:
Trade payables (1,074) 1,536
Other financial liabilities 449 312
Provisions 162 (2,342)
Other liabilities 1,436 973 (187) (681)
Cash generated from operating activities 16,438 10,629
Less: Income tax paid (1,442) (530)
Net cash generated from operating activities 14,996 10,099
B Cash Flow from investing activities
Capital expenditure on property, plant and equipment (19,649) (14,518)
including capital advances
Deposits not considered as cash and cash equivalents
- Placed (1,483) (690)
- Matured 910 -
Proceeds from disposal of plant and equipment 28 75
Proceeds from sale of investments 28 -
Dividend received (` 26,000 in the current year - -
and previous year)
Interest received 766 70
Net cash used in investing activities (19,400) (15,063)

C Cash flow from financing activities
Proceeds from issue of shares including - 22,176
securities premium (net)
Expenses on issue of shares - (568)
Proceeds from non-current borrowings 2,334 12,885
Advance to related parties (net) 12 (21)
Repayment of non-current borrowings (5,127) (8,775)
Proceeds from current borrowings (net) 1,993 862
Finance costs (5,903) (5,714)
Dividend paid including tax (983) -
Net cash (used in)/ generated from financing activities (7,674) 20,845
Net increase in cash and cash equivalent (A+B+C) (12,078) 15,881
Cash and cash equivalent at the beginning of the year 16,178 297
Cash and Cash equivalent at the end of the year (Refer Note 9) 4,100 16,178
R.Soundararajan
Company Secretary
Date : May 29, 2018 Date: May 29, 2018

Notes to the consolidated financial statements
1. Corporate information and significant accounting policies
(a) Corporate Information
Sagar Cements Limited (“the Company”) and its wholly owned subsidiary Sagar Cements (R) Limited (together
referred to as “the Group”) are engaged in the business of manufacture and sale of cement and generation of
power for sale and captive consumption. The name of the wholly owned subsidiary was changed from BMM
Cements Limited to Sagar Cements (R) Limited with effect from March 28, 2017.
(b) Significant accounting policies
(i) Statement of compliance
The consolidated financial statements have been prepared in accordance with Indian Accounting Standards
prescribed under section 133 of the Companies Act, 2013 (“the Act”) read with the Companies (Indian
Accounting Standards) Rules, 2015 as amended and other accounting principles generally accepted in
India and guidelines issued by the Securities and Exchange Board of India (SEBI).
(ii) Basis of preparation and presentation
The consolidated financial statements have been prepared on the historical cost basis except for certain
financial instruments that are measured at fair values at the end of each reporting period, as explained in
the accounting policies below.
Historical cost is generally based on the fair value of the consideration given in exchange for goods and
services.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date, regardless of whether that price is
directly observable or estimated using another valuation technique. In estimating the fair value of an
asset or a liability, the Group takes into account the characteristics of the asset or liability if market
participants would take those characteristics into account when pricing the asset or liability at the
measurement date. Fair value for measurement and/or disclosure purposes in these financial statements
is determined on such a basis, except for net realisable value in Ind AS 2 or value in use in Ind AS 36 that
have some similarities to fair value but are not fair value.
In addition, for financial reporting purposes, fair value measurements are categorised into Level 1, 2, or
3 based on the degree to which the inputs to the fair value measurements are observable and the
significance of the inputs to the fair value measurement in its entirety, which are described as follows:
Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the
entity can access at the measurement date;
Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the
asset or liability, either directly or indirectly; and
Level 3 inputs are unobservable inputs for the asset or liability.
(iii) Use of estimates

In the application of the Groups’ accounting policies, which are described in Note 1, the management of
the Company are required to make judgements, estimates and assumptions about the carrying amounts
of assets and liabilities that are not readily apparent from other sources. The Management believes that
the estimates used in preparation of the consolidated financial statements are prudent and reasonable
and the associated assumptions are based on historical experience and other factors that are considered
to be relevant.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognised in the period in which the estimate is revised if the revision affects only that

period, or in the period of the revision and future periods if the revision affects both current and future
periods. The significant areas of estimation, uncertainty and critical judgements in applying accounting
policies that have the most significant effect on the amount recognised in the financial statements is
included in the following notes:
• Useful lives of property, plant and equipment and intangible assets
• Assets and obligations relating to employee benefits
• Evaluation of recoverability of deferred tax assets
• Financial instruments
• Measurement of recoverable amounts of cash generating units
• Provisions and contingencies
• Expected credit losses
(iv) Basis of consolidation
The consolidated financial statements incorporate the financial statements of the Company and the entities
controlled by the Company. Control is achieved when the Company:
• has power over the investee;
• is exposed, or has rights, to variable returns from its involvement with the investee; and
• has ability to use its power to affect its returns.
Entities controlled by the Company are consolidated from the date control commences until the date
control ceases.
When necessary, adjustments are made to the financial statements of the subsidiaries to bring their
accounting policies into line with the Group’s accounting policies.
All intragroup assets and liabilities, equity, income, expenses, and cash flows relating to transactions
between members of the Group are eliminated in full on consolidation.
Following subsidiary company has been considered in the preparation of the consolidated financial
statements:
Name of the entity Relationship Country of Ownership % of Holding and
Incorporation held by voting power
held directly
Sagar Cements (R) Limited Subsidiary India Sagar Cements 100%
Limited
(v) Business combination

The Group accounts for its business combinations under acquisition method of accounting. The
consideration transferred in a business combination is measured at fair value, which is calculated as the
sum of the acquisition-date fair value of assets transferred by the group, liabilities incurred by the group
to the former owners of the acquiree and the equity interest issued by the group in exchange of control
of the acquire. Acquisition related costs are generally recognised in consolidated statement of profit and
loss as incurred.
Goodwill is measured as the excess of the sum of the consideration transferred, the amount of any non-
controlling interests in the acquiree, and the fair value of the acquirer’s previously held equity interest in
the acquiree (if any) over the net of the acquisition-date amounts of the identifiable assets acquired and
liabilities assumed.
If those amounts are less than the fair value of the net identifiable assets of the business acquired, the
difference is recognised in other comprehensive income and accumulated in equity as capital reserve
provided there is clear evidence of the underlying reasons for classifying the business combination as
bargain purchase. In other cases, the bargain purchase gain is recognised directly in equity as capital
reserve.

(vi) Goodwill
Goodwill arising on an acquisition of a business is carried at cost as established at the date of acquisition
of the business less accumulated impairment losses, if any.
For the purposes of impairment testing, goodwill is allocated to each of the Group’s cash-generating
units (or groups of cash-generating units) that is expected to benefit from the synergies of the combination.
A cash-generating unit to which goodwill has been allocated is tested for impairment annually, or more
frequently when there is an indication that the unit may be impaired. If the recoverable amount of the
cash-generating unit is less than its carrying amount, the impairment loss is allocated first to reduce the
carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro rata
based on the carrying amount of each asset in the unit. Any impairment loss for goodwill is recognised
directly in profit or loss. An impairment loss recognised for goodwill is not reversed in subsequent
periods.
On disposal of the relevant cash-generating unit, the attributable amount of goodwill is included in the
determination of the profit or loss on disposal.
(vii) Revenue recognition
Revenue is measured at the fair value of the consideration received or receivable. Revenue is reduced
for estimated rebates and other similar allowances. Revenue is measured at fair value of the consideration
received or receivable, after deduction of any trade discounts, volume rebates and any taxes or duties
collected on behalf of the government which are levied on sales such as sales tax, value added tax,
goods and services tax, etc.
Sale of goods
Revenue from the sale of goods is recognised when the goods are delivered and titles have passed, at
which time all the following conditions are satisfied:
• the Group has transferred to the buyer the significant risks and rewards of ownership of the goods;
• the Group retains neither continuing managerial involvement to the degree usually associated with
ownership nor effective control over the goods sold;
• the amount of revenue can be measured reliably;
• it is probable that the economic benefits associated with the transaction will flow to the Group; and
• the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Generation of Power
In case of power generation, revenue from sale of energy is recognized on accrual basis. Claims for
delayed payment charges and any other claims, which the Group is entitled to, on grounds of prudence
are accounted on admittance basis.
Dividend and interest income
Dividend income from investments is recognised when the shareholder’s right to receive payment has
been established.
Interest income from a financial asset is recognised when it is probable that the economic benefits will
flow to the Group and the amount of income can be measured reliably. Interest income is accrued on a
time basis, by reference to the principal outstanding and at the effective interest rate applicable.
(viii) Borrowing costs
Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets,
which are assets that necessarily take a substantial period of time to get ready for their intended use or
sale, are added to the cost of those assets, until such time as the assets are substantially ready for their
intended use or sale.
Interest income earned on the temporary investment of specific borrowings pending their expenditure
on qualifying assets is deducted from the borrowing costs eligible for capitalisation.

All other borrowing costs are recognised in the statement of profit and loss in the period in which they
are incurred.
(ix) Government grants
Government grants and subsidies are recognised when there is reasonable assurance that the Group will
comply with the conditions attached thereto and that the grants will be received.
(x) Employee benefits
Employee benefits include provident fund, superannuation fund, employee state insurance scheme, gratuity
fund and compensated absences.
Defined Contribution Plans
The Group’s contribution to provident fund, superannuation fund and employee state insurance scheme
are considered as defined contribution plans and are charged as an expense based on the amount of
contribution required to be made and when services are rendered by the employees.
Defined Benefit Plans
For defined benefit retirement benefit plans, the cost of providing benefits is determined using the projected
unit credit method, with actuarial valuations being carried out at the end of each annual reporting
period. Re-measurement, comprising actuarial gains and losses, the effect of the changes to the asset
ceiling (if applicable) and the return on plan assets (excluding net interest), is reflected immediately in
the balance sheet with a charge or credit recognised in other comprehensive income in the period in
which they occur. Re-measurement recognised in other comprehensive income is reflected immediately
in retained earnings and is not reclassified to profit or loss. Past service cost is recognised in profit or loss
in the period of a plan amendment. Net interest is calculated by applying the discount rate at the beginning
of the period to the net defined benefit liability or asset. Defined benefit costs are categorised as follows:
• service cost (including current service cost, past service cost, as well as gains and losses on curtailments
and settlements);
• net interest expense or income; and
• re-measurement
Short-term employee benefits
The undiscounted amount of short-term employee benefits expected to be paid in exchange for the
services rendered by employees are recognized during the year when the employees render the service.
These benefits include performance incentive and compensated absences which are expected to occur
within twelve months after the end of the period in which the employee renders the related service.
(xi) Taxation
Income tax expense represents the sum of current tax and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from ‘profit before
tax’ as reported in the consolidated statement of profit and loss because of items of income or expense
that are taxable or deductible in other years and items that are never taxable or deductible. Current tax is
calculated using tax rates that have been enacted or substantively enacted by the end of the reporting
period.
Deferred tax
Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities
in the consolidated financial statements and the corresponding tax bases used in the computation of
taxable profit. Deferred tax liabilities are generally recognised for all taxable temporary differences.
Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it
is probable that taxable profits will be available against which those deductible temporary differences
can be utilised. Such deferred tax assets and liabilities are not recognised if the temporary difference
arises from the initial recognition (other than in a business combination) of assets and liabilities in a
transaction that affects neither the taxable profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced
to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or
part of the asset to be recovered.
Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in
which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted
or substantively enacted by the end of the reporting period.
The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow
from the manner in which the Group expects, at the end of the reporting period, to recover or settle the
carrying amount of its assets and liabilities.
Current and deferred tax are recognised in profit or loss, except when they relate to items that are
recognised in other comprehensive income or directly in equity, in which case, the current and deferred
tax are also recognised in other comprehensive income or directly in equity respectively.
(xii) Property, plant and equipment
Property, plant and equipment are carried at cost less accumulated depreciation and impairment losses,
if any. The cost of property, plant and equipment comprises its purchase price net of any trade discounts
and rebates, any import duties and other taxes (other than those subsequently recoverable from the tax
authorities), any directly attributable expenditure on making the asset ready for its intended use, other
incidental expenses and borrowings costs attributable to acquisition of qualifying fixed assets up to the
date the asset is ready for its intended use. Freehold land is not depreciated.
Properties in the course of construction for production, supply or administrative purposes are carried at
cost, less any recognised impairment loss. Cost includes professional fees and, for qualifying assets,
borrowing costs capitalised in accordance with the Group’s accounting policy. Such properties are
classified to the appropriate categories of property, plant and equipment when completed and ready for
intended use. Depreciation of these assets, on the same basis as other property assets, commences when
the assets are ready for their intended use.
An item of property, plant and equipment is derecognised upon disposal or when no future economic
benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the disposal
or retirement of an item of property, plant and equipment is determined as the difference between the
sales proceeds and the carrying amount of the asset and is recognised in profit or loss.
Depreciation is recognised so as to write off the cost of assets (other than freehold land and properties
under construction) less their residual values over their useful lives.
Depreciation on plant and machinery and railway siding is charged under straight line method and on
other assets depreciation is charged under WDV method, based on the useful life prescribed in Schedule
II to the Companies Act, 2013 except in respect of the following categories of assets, in whose case the
life of the assets has been assessed as under based on technical advice, taking into account the nature of
the asset, the estimated usage of the asset, the operating conditions of the asset, past history of replacement,
anticipated technological changes, manufacturers warranties and maintenance support, etc.:
• Railway siding - 25 years
• Plant and machinery other than continuous process plant – 25 years
In case of the Subsidiary company, depreciation has been provided on straight-line method for all the
class of depreciable assets as per the useful life prescribed in Schedule II to the Companies Act, 2013,
except in respect of the following categories of assets, in whose case the life of the assets has been
assessed as under based on technical advice, taking into account the nature of the asset, the estimated
usage of the asset, the operating conditions of the asset, past history of replacement, anticipated
technological changes, manufacturers warranties and maintenance support, etc.
• Electrical Equipment (Plant & Machinery) - 15 years
The estimated useful lives, residual values and depreciation method are reviewed at the end of each
reporting period, with the effect of any changes in estimate accounted for on a prospective basis.

The Group follows the process of componentization for property, plant and equipment. Accordingly,
the group has identified a part of an asset as a separate component in whole asset value (beyond certain
value) and useful life of the part is different from the useful life of the remaining asset. The useful life has
been assessed based on technical advice, taking into account the nature of the asset / component of an
asset, the estimated usage of the asset / component of an asset on the basis of management’s best estimation
of getting economic benefits from those class of assets / components of an asset. The Group uses its
technical expertise along with historical and industry trends for arriving the economic life of an asset/
component of an asset.
Individual assets costing less than or equal to ` 5,000 are depreciated in full in the year of acquisition.
(xiii) Intangible assets acquired separately
Intangible assets with finite useful lives that are acquired separately are carried at cost less accumulated
amortisation and accumulated impairment losses. Amortisation is recognised on a straight-line basis
over their estimated useful lives. The estimated useful life and amortisation method are reviewed at the
end of each reporting period, with the effect of any changes in estimate being accounted for on a
prospective basis.
(xiv) Inventories
Inventories are valued at the lower of cost and net realisable value after providing for obsolescence and
other losses, where considered necessary. Cost includes all charges in bringing the goods to the point of
sale, including octroi and other levies, transit insurance and receiving charges. Net realisable value
represents the estimated selling price for inventories less all estimated costs of completion and costs
necessary to make the sale. Work-in-progress and finished goods include appropriate proportion of
overheads.
The methods of determining cost of various categories of inventories are as follows:
Raw materials and coal Weighted average method
Stores and spares and packing materials Weighted average method
Work-in-progress and finished goods (manufactured) Weighted average method and including an
appropriate share of applicable overheads.
(xv) Cash and cash equivalents (for purposes of Cash Flow Statement)
Cash comprises cash on hand, in bank and demand deposits with banks. Cash equivalents are short-term
balances (with an original maturity of three months or less from the date of acquisition), highly liquid
investments that are readily convertible into known amounts of cash and which are subject to insignificant
risk of changes in value.
Cash flows are reported using indirect method whereby profit/ (loss) after tax is adjusted for the effects of
transaction of non-cash nature and any deferrals or accruals of past or future cash receipts and payments.
The cash flows from operating, investing and financing activities of the group are segregated based on
the available information.
(xvi) Foreign currency transactions and translations
Transactions in foreign currencies entered into by the Group are accounted at the exchange rates prevailing
on the date of the transaction or at rates that closely approximate the rate at the date of the transaction.
Foreign currency monetary items of the Group, outstanding at the balance sheet date are restated at the
year-end rates. Non-monetary items of the Group that are measured in terms of historical cost in a
foreign currency are not retranslated.
For the purposes of presenting these financial statements, the exchange differences on monetary items
arising, if any, are recognized in the statement of profit and loss in the period in which they arise.
(xvii) Segment Reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief
operating decision maker.

The management evaluates the Group’s performance and allocates resources based on analysis of various
performance indicators by business segments.
(xviii) Financial Instruments
(A) Initial recognition
Financial assets and financial liabilities are recognized when a Company becomes a party to the
contractual provisions of the instruments.
Financial assets and financial liabilities are initially measured at fair value. Transaction costs that
are directly attributable to the acquisition or issue of financial assets and financial liabilities (other
than financial assets and financial liabilities at fair value through profit or loss) are added to or
deducted from the fair value of the financial asset or financial liabilities, as appropriate, on initial
recognition. Transaction costs directly attributable to the acquisition of financial assets or liabilities
at fair value through profit or loss are recognized immediately in profit or loss.
(B) Subsequent measurement
a. Financial assets carried at amortised cost: A financial asset is subsequently measured at
amortised cost if it is held within a business model whose objective is to hold the asset in
order to collect contractual cash flows and the contractual terms of the financial asset give
rise on specified dates to cash flows that are solely payments of principal and interest on the
principal amount outstanding.
b. Financial assets at fair value through other comprehensive income: A financial asset is
subsequently measured at fair value through other comprehensive income if it is held within
a business model whose objective is achieved by both collecting contractual cash flows and
selling financial assets and the contractual terms of the financial asset give rise on specified
dates to cash flows that are solely payments of principal and interest on the principal amount
outstanding. The Company has made an irrevocable election for its investments which are
classified as equity instruments to present the subsequent changes in fair value in other
comprehensive income based on its business model.
c. Financial assets at fair value through profit or loss: A financial asset which is not classified in
any of the above categories are subsequently fair valued through profit or loss.
d. Financial liabilities: Financial liabilities are subsequently carried at amortised cost using the
effective interest method, except for contingent consideration recognized in a business
combination which is subsequently measured at fair value through profit and loss. For trade
and other payables maturing within one year from the Balance Sheet date, the carrying amounts
approximate fair value due to the short maturity of these instruments.
(C) De-recognition of financial assets and liabilities
The Group derecognizes a financial asset when the contractual rights to the cash flows from
the asset expire, or when it transfers the financial asset and substantially all the risks and
rewards of ownership of the asset to another party. If the Group retains substantially all the
risks and rewards of ownership of a transferred financial asset, the Group continues to recognize
the financial asset and also recognizes a collateralized borrowing for the proceeds received.
On de-recognition of a financial asset in its entirety, the difference between the asset’s carrying
amount and the sum of the consideration received and receivable and the cumulative gain or
loss that had been recognized in other comprehensive income and accumulated in equity is
recognized in profit or loss if such gain or loss would have otherwise been recognized in
profit or loss on disposal of that financial asset.
b. Financial liabilities:
The Group derecognizes financial liabilities when, and only when, the Group’s obligations
are discharged, cancelled or have expired. The difference between the carrying amount of

the financial liability derecognized and the consideration paid and payable is recognized in
profit or loss.
(xix) Impairment of assets
The Group recognizes loss allowances using the expected credit loss (ECL) model for the financial
assets which are not fair valued through profit or loss. Loss allowance for trade receivables with no
significant financing component is measured at an amount equal to lifetime ECL. For all other
financial assets, expected credit losses are measured at an amount equal to the 12-month ECL,
unless there has been a significant increase in credit risk from initial recognition in which case
those are measured at lifetime ECL. The amount of expected credit losses (or reversal) that is required
to adjust the loss allowance at the reporting date to the amount that is required to be recognized is
recognized as an impairment gain or loss in profit or loss.
For trade receivables only, the Group applies the simplified approach permitted by Ind AS 109
Financial Instruments, which requires expected lifetime losses to be recognized from initial
recognition of the receivables. As a practical expedient, the Group uses a provision matrix to
determine impairment loss of its trade receivables. The provision matrix is based on its historically
observed default rates over the expected life of the trade receivable and is adjusted for forward
looking estimates. The ECL loss allowance (or reversal) during the year is recognized in the statement
of profit and loss.
b. Non-financial assets:
Intangible assets and property, plant and equipment are evaluated for recoverability whenever
events or changes in circumstances indicate that their carrying amounts may not be recoverable.
For the purpose of impairment testing, the recoverable amount (i.e. the higher of the fair value less
cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does not
generate cash flows that are largely independent of those from other assets. In such cases, the
recoverable amount is determined for the CGU to which the asset belongs.
If such assets are considered to be impaired, the impairment to be recognized in the Statement of
Profit and Loss is measured by the amount by which the carrying value of the assets exceeds the
estimated recoverable amount of the asset. An impairment loss is reversed in the statement of profit
and loss if there has been a change in the estimates used to determine the recoverable amount. The
carrying amount of the asset is increased to its revised recoverable amount, provided that this
amount does not exceed the carrying amount that would have been determined (net of any
accumulated amortisation or depreciation) had no impairment loss been recognized for the asset
in prior years.
(xx) Earnings per share
Basic earnings per share is computed by dividing the profit / (loss) after tax (including the post-tax effect
of extraordinary items, if any) by the weighted average number of equity shares outstanding during the
year. Diluted earnings per share is computed by dividing the profit / (loss) after tax (including the post-tax
effect of extraordinary items, if any) as adjusted for dividend, interest and other charges to expense or
income (net of any attributable taxes) relating to the dilutive potential equity shares, by the weighted
average number of equity shares considered for deriving basic earnings per share and the weighted
average number of equity shares which could have been issued on the conversion of all dilutive potential
equity shares.
(xxi) Provisions
Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a
past event, it is probable that the Group will be required to settle the obligation, and a reliable estimate
can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the
present obligation at the end of the reporting period, taking into account the risks and uncertainties
surrounding the obligation. When a provision is measured using the cash flows estimated to settle the

present obligation, its carrying amount is the present value of those cash flows (when the effect of the
time value of money is material).
(xxii) Operating cycle
Based on the nature of activities of the Group and the normal time between acquisition of assets and
their realization in cash or cash equivalents, the Group has determined its operating cycle as twelve
months for the purpose of classification of its assets and liabilities as current and non-current.
(xxiii) Recent accounting pronouncements
Standards issued but not yet effective:
In March 2018, The Ministry of Corporate Affairs issued the Companies (Indian Accounting Standards)
Amendment Rules, 2018 notifying Ind AS 115 Revenue from Contracts with Customers and amendments
to Ind AS 21 The Effects of changes in Foreign Exchange Rates, applicable for annual periods beginning
on or after April 01, 2018.
Ind AS 115 – Revenue from Contracts with Customers:
Ind AS 115 establishes a single comprehensive model for entities to use in accounting for revenue arising
from contracts with customers. Ind AS 115 will supersede the current revenue recognition standard IND
AS 18 – Revenue and Ind AS 11 – Construction Contracts when it becomes effective.
The core principle of Ind AS 115 is that an entity should recognise revenue to depict the transfer of
promised goods or services to customers in an amount that reflects the consideration to which the entity
expects to be entitled in exchange for those goods or services, based on the five step approach as defined
in this standard.
Under this standard, an entity recognises revenue when (or as) a performance obligation is satisfied, i.e.
when ‘control’ of the goods or services underlying the particular performance obligation is transferred to
the customer.
The Group is evaluating the impact of this amendment on its financial statements.
Ind AS 116 – Leases
Ind AS 116 sets out a comprehensive model for identification of lease arrangements and their treatment
in the financial statements of the lessor and lessee. Ind AS 116 will supersede the current leases standard
IND AS 17 – Leases when it becomes effective.
Ind AS 116 applies a control model for the identification of leases, distinguishing between leases and
service contracts on the basis of whether there is an identified asset controlled by the customer.
The Group is evaluating the impact of this amendment on its financial statements.
2. Property, plant and equipment All amounts are in ` lakhs unless otherwise stated
As at As at
Land - freehold 8,917 8,448
Land - restoration 196 208
Buildings 14,568 14,686
Plant & machinery 62,962 57,674
Furniture and fittings 171 226
Office and other equipment 1,055 1,134
Electrical installations 4,065 3,909
Computers 58 94
Vehicles 441 430
Railway siding 6,067 6,316
Total 98,500 93,125

110
Sagar Cements Limited - Annual Report 2017-18 For the year 2017-18 All amounts are in ` lakhs unless otherwise stated
Land- Land Buildings Plant & Furniture Office Electrical Computers Vehicles Railway Total
Description of assets freehold restoration machinery and and other installations siding
fittings equipment
I. Gross block
Opening balance 8,448 229 19,477 75,385 754 4,118 7,559 310 1,028 6,684 1,23,992
Additions 469 - 909 8,293 - 66 697 9 141 - 10,584
Disposals - - - 70 - - - - 32 - 102
Balance as at March 31, 2018 8,917 229 20,386 83,608 754 4,184 8,256 319 1,137 6,684 1,34,474
II. Accumulated depreciation
and impairment
Opening balance - 21 4,791 17,711 528 2,984 3,650 216 598 368 30,867
Depreciation expense - 12 1,027 2,992 55 145 541 45 122 249 5,188
Net block (I-II)
Carrying value as at March 31, 2018 8,917 196 14,568 62,962 171 1,055 4,065 58 441 6,067 98,500
Land- Land Buildings Plant & Furniture Office Electrical Computers Vehicles Railway Total
Description of assets freehold restoration machinery and and other installations siding
fittings equipment
I. Gross block
Opening Balance 6,878 229 15,993 72,316 735 3,879 7,251 279 970 6,427 1,14,957
Additions 1,570 - 3,484 3,105 19 239 308 31 192 257 9,205
Disposals - - - 36 - - - - 134 - 170
Balance as at March 31, 2017 8,448 229 19,477 75,385 754 4,118 7,559 310 1,028 6,684 1,23,992
II. Accumulated depreciation and
impairment
Opening Balance - 10 3,821 15,193 457 2,831 3,111 177 603 128 26,331
Impairment losses recognised in - - 85 - - - 3 - - - 88
profit or loss
Net block (I-II)
3. Other Intangible assets
As at As at
Particulars
March 31, 2018 March 31, 2017
Computer software 32 43
Mining rights 2,850 3,014
Total 2,882 3,057
Particulars Computer software Mining rights Total
I. Gross block
Opening balance 304 3,276 3,580
Additions - - -
Balance as at March 31, 2018 304 3,276 3,580
Opening Balance 261 262 523
Amortisation expense 10 164 174
Other adjustments 1 - 1
Balance as at March 31, 2018 272 426 698
Net block (I-II)
Carrying value as at March 31, 2018 32 2,850 2,882

Particulars Computer software Mining rights Total
I. Gross block
Opening Balance 294 3,276 3,570
Additions 10 - 10
Balance as at March 31, 2017 304 3,276 3,580
Opening Balance 250 98 348
Amortisation expense 10 164 174
Other adjustments 1 - 1
Balance as at March 31, 2017 261 262 523
Net block (I-II)

Amount Amount
shares shares
4. Investments (Unquoted)
Investments in equity instruments -
others (Unquoted, fully paid up)
Panchavati Polyfibres Limited - - 26,000 26
PCL Financial Services ltd - - 1,000 2
Total - 28
Aggregate amount of investment carried at fair value - 28
through other comprehensive income
As at As at
5. Other financial assets (Unsecured, considered good)
Non-current
(a) Security deposits 1,388 1,645
(b) Balance held as margin money deposit against borrowings 196 279
Total 1,584 1,924
Current
(a) Security deposits 103 136
(b) Advances to employees 68 51
(c) Interest accrued but not due 211 327
(d) Balances held as margin money deposit against borrowings - 179
Total 382 693
Total other financial assets 1,966 2,617
6. Other assets (Unsecured, considered good)
Non-current
(a) Capital advances 5,243 2,419
(b) Prepaid expenses 17 17
Total 5,260 2,436
Current
(a) Advances to suppliers 922 980
(b) Advances to related parties 771 783
(c) Prepaid expenses 201 208
(d) Balances with government authorities (other than income taxes) 1,027 651
(e) Excise duty refund receivable 194 194
(f) Incentives receivable from government 1,060 1,060
(g) Others 48 46
Total 4,223 3,922
Total other assets 9,483 6,358

As at As at
7. Inventories (at lower of cost and net realizable value)
(b) Coal 2,384 3,097
(c) Work-in-progress 3,642 2,051
(d) Stores and spares 1,911 1,762
(e) Packing materials 317 297
(f) Finished goods 400 582
Total (A) 9,401 8,595
Goods-in-transit:
(b) Coal 55 2,404
(c) Packing materials 30 31
Total (B) 90 2,440
Total inventories (A+B) 9,491 11,035
8. Trade receivables
Secured, considered good 975 1,554
Unsecured, considered good 8,283 6,529
Unsecured, doubtful 195 96
Sub-total 9,453 8,179
Less: Provision for doubtful trade receivables (195) (96)
Total trade receivables 9,258 8,083
The Company has used a practical expedient by computing the expected credit loss allowance for trade receivables
based on a provision matrix. The provision matrix takes into account historical credit loss experience and
adjusted for forward looking information. The expected credit loss allowance is based on the ageing of the days
the receivables are due and the rates as per the provision matrix. The ageing of the receivables is as follows:
As at As at
N Particulars March 31, 2018 March 31, 2017
Within the credit period 6,421 5,194
1-30 days past due 694 1,120
91-180 days past due 275 405
More than 180 days past due 1,325 246
Total 9,453 8,179
Movement in expected credit loss allowance
Balance at the beginning of the year 96 63
Movement in expected credit loss allowance on trade receivables 99 33
Balance at the end of the year 195 96

As at As at
9. Cash and cash equivalents
(a) Cash in hand 3 4
(b) Balances with banks 97 3,629
(c) Deposits with banks 4,000 12,500
(d) Cheques on hand - 45
Total cash and cash equivalents 4,100 16,178
10. Other bank balances
(a) Unpaid dividend account 64 58
(b) Deposits held as margin money/security for bank guarantees 1,646 811
Total other bank balances 1,710 869
Amount Amount
shares shares
11. Equity share capital
Authorised:
Equity shares of ` 10 each 2,20,00,000 2,200 2,20,00,000 2,200
Preference shares of ` 10 each - - - -
Total 2,20,00,000 2,200 2,20,00,000 2,200
Issued, subscribed and fully paid up:
Equity shares ` 10 each 2,04,00,000 2,040 2,04,00,000 2,040
Total 2,04,00,000 2,040 2,04,00,000 2,040
(a) Reconciliation of equity shares and amount outstanding at the beginning and at the end of the year:
Particulars No. of No. of
shares Amount shares Amount
Opening balance 2,04,00,000 2,040 1,73,88,014 1,739

Shares issued during the year (Refer Note (d) below) - - 30,11,986 301
Closing balance 2,04,00,000 2,040 2,04,00,000 2,040
(b) Rights, Preferences and Restrictions attached to the Equity Shares:
The Company has only one class of equity shares having a par value of ` 10 per share. Each holder of
equity shares is entitled to one vote per share. The dividend proposed by the Board of Directors is subject
to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim
dividend. In the event of liquidation of the Company, the holders of equity shares will be entitled to
receive remaining assets of the Company, after distribution of all preferential amounts. The distribution
will be in proportion to the number of equity shares held by the shareholders.

(c) Details of shareholders holding more than 5% shares in the Company:
Name of the shareholder No. of % of No. of % of
shares holding shares holding
S. Veera Reddy 16,43,795 8.06% 16,43,795 8.06%
S. Aruna 13,69,545 6.71% 13,69,545 6.71%
Rachana Sammidi 11,64,280 5.71% 11,64,280 5.71%
Dr. S. Anand Reddy 13,03,524 6.39% 13,04,776 6.40%
S. Sreekanth Reddy 12,38,753 6.07% 12,38,753 6.07%
S. Vanajatha 9,90,769 4.86% 9,90,769 4.86%
HDFC Trustee Company Limited - Prudence Fund 14,16,000 6.94% 9,20,000 4.51%
AVH Resources India Private Limited 35,83,704 17.57% 35,83,704 17.57%
(d) (i) During the year 2016-17, the Company made a preferential allotment of 611,986 equity shares of ` 10
each at a premium of ` 790 per share aggregating ` 4,896 (including securities premium of ` 4,835) to
the promoter and non promoter group. (Refer Note 37)
(ii) During the year 2016-17, the Company raised a sum of ` 17,280 (including securities premium of
` 17,040) by allotment of 2,400,000 equity shares of ` 10 each at a premium of ` 710 per share
through Qualified Institutions Placement. (Refer Note 37)
As at As at
12. Other equity
Securities premium account 32,007 32,007
Reserve for equity instruments - 13
Retained earnings 40,236 38,586
Other items for other incomprehensive income 4 17
Total other equity 75,880 74,256
Movement in other equity is as follows:
As at As at
Particulars
March 31, 2018 March 31, 2017
Securities premium account
(i) Opening Balance 32,007 10,503
(ii) Proceeds from issue of shares - 21,875
(iii) Share issue expenses incurred during the year - (568)
(iv) Income tax relating to issue of shares - 197
32,007 32,007
Retained earnings
(ii) Profit/ (Loss) for the year 2,626 (392)
(iii) Other adjustments (7) (1)
(iv) Transfer from Reserve for equity instruments 14 -
41,219 38,586

As at As at
Particulars
March 31, 2018 March 31, 2017
Less: Appropriations
(i) Dividend on equity shares 817 -
(ii) Tax on dividend 166 -
40,236 38,586
Reserve for equity instruments
(i) Opening Balance 13 12
(ii) Fair valuation of unquoted equity instruments - 1
(iii) Gain on sale of investments in unquoted equity instruments 1 -
(iv) Transfer to Retained earnings (14) -
- 13
Other items of other comprehensive income
(i) Opening Balance 17 41
(ii) Other comprehensive income (13) (24)
4 17
Total 75,880 74,256
Nature of reserves:
(a) Capital Reserve
This represents subsidies received from the government.
(b) Securities premium account
Amounts received on issue of shares in excess of the par value has been classified as securities premium.
(c) General reserve
This represents appropriation of profit by the company
(d) Retained earnings
Retained earnings comprises of prior years undistributed earnings after taxes.
(e) Reserve for equity instruments
Reserve for equity instruments arises on account of fair valuation of equity instruments which is routed through other
comprehensive income.
(f) Other items of other comprehensive income
This represents income/ expense arising out of remeasurement of defined benefit obligation (net of taxes).
As at As at
13. Non current borrowings* (Secured, at amortised cost)
(a) Debentures (Refer Note (ii) below) 15,000 15,000
(b) Term Loans (Refer Note (i) below) 17,972 19,967
Total non-current borrowings 32,972 34,967
*Current maturities of non-current borrowings are disclosed under the head “Other financial liabilities”.
Note (i): As at March 31, 2018
Loan Rate of

Loan Rate of
Bank outstanding Terms of repayment interest
Vehicle loans from various banks 586 4 - 32 monthly instalments 9.00% to
(Refer Note 6 below) 12.50%
Less: Current maturities of non-current (3,335)
borrowings
17,972
Loan Rate of
Bank outstanding Terms of repayment interest
State Bank of India (Refer Note 1 below) 1,016 18 monthly instalments 12.15%
State Bank of Hyderabad 1,300 5 quarterly instalments 12.75%
(Refer Note 5 below)
Corporation Bank (Refer Note 5 below) 170 1 quarterly instalment 16.25%
Vehicle loans from various banks 223 35-36 monthly instalments 9.00% -
(Refer Note 6 below) 12.50%
Less: Current maturities of non-current (4,130)
borrowings
19,967
Notes:
1. The term loans from the bank is secured by pari-passu charge on the property, plant & equipment i.e., land, buildings,
plant & machinery and mining equipment owned by or belonging to the Company both present and future, and by
second charge on the current assets of the company and are guaranteed by S. Veera Reddy, Managing Director, Dr. S.
Anand Reddy, Joint Managing Director and S. Sreekanth Reddy, Executive Director.
2. The term loan was secured by pari-passu charge on the property, plant and equipment i.e., land, buildings, plant &
machinery and mining equipment owned by or belonging to the borrower company both present and future, and by
second charge on the current assets of the company and are guaranteed by Dr S. Anand Reddy, Joint Managing Director
and S. Sreekanth Reddy, Executive Director.
3. The term loan from the bank is secured by exclusive charge of all property, plant and equipment of the grinding unit at
Bayyavaram near Vishakhapatnam, Andhra Pradesh both present and future and second pari-passu charge on current
assets of the company, both present and future and is guaranteed by Dr. S. Anand Reddy - Joint Managing Director and
S. Sreekanth Reddy - Executive Director.
4. The term loan from the bank is secured by exclusive charge on the assets of 6.00 MW Waste heat recovery power plant,
hypothecation of plant & machinery and is guaranteed by S.Veera Reddy - Managing Director, Dr. S. Anand Reddy -
Joint Managing Director and S. Sreekanth Reddy - Executive Director.
5. The term loan from other parties was secured by pari-passu charge on the property, plant and equipment i.e., land,
buildings, plant & machinery and mining equipment owned by or belonging to the borrower company both present and
future, and by second charge on the current assets of the company.
6. Vehicle Loans from various banks/financial institutions are secured by the hypothecation of specific assets purchased
from those loans.

Note (ii): Non-Convertible Debentures (NCD) have been issued to International Finance Corporation. A total of 1,500 NCD’s
have been issued ( `10 lakhs each) aggregating ` 15,000. Interest payable on the NCD’s is @11.60%.The NCD’s
were issued on March 23, 2016. Interest is payable at half yearly rest with effect from May 31, 2016. Repayment
for the NCD’s are to be made in 13 equal half yearly installments of ` 1,154 starting from May 2019 onwards. The
NCD’s are secured by pari-passu charge on the property, plant and equipment i.e., land, buildings, plant & machinery
and mining equipment owned by or belonging to the borrower company both present and future, and by second
charge on the current assets of the company and are guaranteed by Dr. S. Anand Reddy - Joint Managing Director
and S. Sreekanth Reddy, Executive Director. The Holding Company has furnished a corporate guarantee to IDBI
Trusteeship Services Limited to secure the NCD’s.
As at As at
Current borrowings (at amortised cost)
Loans repayable on demand
Cash credit facilities 11,526 9,561
Total secured borrowings 11,526 9,561
Note: The group has availed cash credit facilities from Banks. This facility is secured against stocks of raw materials,
finished goods, trade receivables, stores and spares, present and future, and by second charges on property,
plant and equipment of the Company and are guaranteed by S. Veera Reddy, Managing Director, Dr. S.
Anand Reddy, Joint Managing Director and S. Sreekanth Reddy, Executive Director. The loans are repayable
on demand and carries interest @ 7.65% p.a. to 15.10% p.a. (2016-17: 12.5% p.a to 15.10% p.a)
As at As at
14. Other financial liabilities
Non current
(a) Security deposits received 5,006 4,556
(b) Loan from others 59 31
Total 5,065 4,587
Current
(a) Current maturities of non-current borrowings 3,335 4,130
(b) Interest accured but not due on borrowings 743 718
(c) Unpaid dividends 64 58
(d) Payables on purchase of property, plant and equipment 935 173
Total 5,077 5,079
Total other financial liabilities 10,142 9,666
15. Provisions
(a) Gratuity (Refer Note 30) 340 236
(b) Compensated absences (Refer Note 30) 282 208
Total Provisions 622 444
Non-current
(a) Gratuity 191 236
(b) Compensated absences 203 -
Total 394 236
Current
(a) Gratuity 149 -
(b) Compensated absences 79 208
Total 228 208

As at As at
Note Particulars
March 31, 2018 March 31, 2017
16. Trade payables
(a) Due to micro, small and medium enterprises (Refer Note 28) 3 5
(b) Due to others 13,677 14,772
Total trade payables 13,680 14,777
17. Other liabilities
Non current
Liability for land restoration 229 229
Total 229 229
Current
(a) Advance from customers 3,245 2,617
(b) Statutory remittances 2,462 1,698
Total 5,707 4,315
Total other liabilities 5,936 4,544
For the For the
Note Particulars year ended year ended
March 31, 2018 March 31, 2017
18. Revenue from operations
(a) Revenue from
- Sale of cement (Refer Note 39) 1,06,964 92,088
- Sale of power 576 1,458
(b) Other operating income
- Sale of scrap 172 44
- Incentives received from government 60 562
- Insurance claims - 7
Total revenue from operations 1,07,772 94,159
19. Other income
(a) Interest Income on financial assets at amortized cost 650 260
(b) Profit on sale of property, plant & equipment 7 41
(c) Liabilities no longer required written back 64 51
(d) Others 9 -
Total other income 730 352
20. Cost of materials consumed
Opening stock 806 464
Add: Purchases 14,133 10,652
Less: Closing stock 745 806
Total cost of materials consumed 14,194 10,310
Details of materials consumed
Limestone 5,815 4,846
Laterite 2,648 1,652
Iron-ore sludge 846 861
Gypsum 1,624 1,500
Flyash 1,397 1,260
Slag and others 1,864 191
Total 14,194 10,310

For the For the
March 31, 2018 March 31, 2017
21. Changes in inventories of finished goods, work-in-progress and
stock-in-trade
Inventories at the beginning of the year:
2,633 2,768
Inventories at the end of the year:
4,042 2,633
Net (increase)/ decrease (1,409) 135
22. Employee benefit expenses
(a) Salaries and wages, including bonus 4,409 3,751
(b) Contribution to provident and other funds 369 248
(c) Staff welfare expenses 351 312
Total employee benefit expenses 5,129 4,311
23. Finance cost
(a) Interest expense 5,270 5,586
Less: Amounts included in the cost of qualifying assets (87) (177)
(b) Other borrowing cost 746 799
Total finance cost 5,929 6,208
24. Depreciation and amortisation expense
(a) Depreciation of property, plant and equipment 5,352 4,585
(b) Amortization of intangible assets 10 174
Total depreciation and amortisation expense 5,362 4,759
25. Other expenses
Coal consumed 28,198 21,470
Power 4,947 5,719
Packing materials consumed 4,423 3,717
Stores and spares consumed 2,929 2,746
Repairs and maintenance
Plant & equipment 1,528 1,881
Buildings 15 38
Others 584 487
Freight and forwarding expenses 21,793 15,112
Selling expenses 2,596 2,231
Rent 221 220
Insurance 212 142
Rates and taxes 236 458
Expenditure on corporate social responsibility 95 47
Payment to Auditors (Refer Note (i) below) 40 61

For the For the
March 31, 2018 March 31, 2017
Impairment of non-financial assets - 88
Travelling and conveyance 321 293
Security services 224 206
Donations and contributions 43 56
Legal and other professional 520 346
Administrative expenses 209 230
Printing and stationery 42 24
Communication 76 71
Net Loss on foreign currency transations and translation 1 1
Directors sitting fees 14 23
Miscellaneous expenses 38 46
Decrease of excise duty on inventory (Refer Note (ii) below) (58) (20)
Captive consumption of Cement (305) (135)
Total other expenses 69,041 55,591
Note (i):
Payment to Auditors (net of service tax) comprises:
For audit 28 28
For limited reviews 10 10
For other services 1 21
Reimbursement of expenses 1 2
Total 40 61
Note(ii):
Consequent to implementation of Goods and Services tax effective from July 01, 2017, excise duty on opening
stock of finished goods as at April 01, 2017 has been reversed.
For the For the
March 31, 2018 March 31, 2017
26. Income tax expense
(a) Income tax recognized in the Statement of Profit & Loss
Current tax:
In respect of the current year 1,641 510
In respect of prior years - (41)
1,641 469
Deferred tax
In respect of current year origination and reversal of temporary differences 1,060 345
MAT Credit (760) -
300 345
1,941 814

profit and loss profit and loss
Property, plant and equip- 12,382 2,583 - - - - 14,965
ment and intangible assets
Provision for employee (219) 6 7 - - - (206)
benefits
Provision for doubtful (22) (44) - - - - (66)
trade receivables
MAT credit entitlement (2,230) (760) - - - - (2,990)
Carry forward business (9,174) (1,490) - - - - (10,664)
losses and depreciation
Others (197) - - - - - (197)
Total Deferred tax 540 295 7 - - - 842
liability (Net)
profit and loss profit and loss
Property, plant and equip- 11,305 1,077 - - - - 12,382
ment and intangible assets
Provision for employee (167) (46) 13 - (19) - (219)
benefits
Provision for doubtful - (22) - - - - (22)
trade receivables
MAT credit entitlement (2,452) - - - 222 - (2,230)
Carry forward business (8,121) (1,053) - - - - (9,174)
losses and depreciation
Others (389) - - (197) - 389 (197)
Total Deferred tax
liability (Net) 176 (44) 13 (197) 203 389 540
Gross deferred tax assets and liabilities are as follows:

As at March 31, 2018 Assets Liabilities Net Liability
Deferred tax assets/(liabilities) in relation to:
Property, plant and equipment and intangible assets (7,525) 7,440 14,965
Provision for employee benefits 33 (173) (206)
Allowance for credit losses 16 (50) (66)
MAT credit entitlement - (2,990) (2,990)
Carry forward business losses and depreciation 10,664 - (10,664)
Others - (197) (197)
Total 3,188 4,030 842

As at March 31, 2017 Assets Liabilities Net Liability

Deferred tax assets/(liabilities) in relation to:
Property, plant and equipment and intangible assets (6,756) 5,626 12,382
Provision for employee benefits 45 (174) (219)
Allowance for credit losses - (22) (22)
MAT credit entitlement - (2,230) (2,230)
Carry forward business losses and depreciation 9,174 - (9,174)
Others - (197) (197)
Total 2,463 3,003 540
Current tax assets and liabilities
As at As at
Particulars
March 31, 2018 March 31, 2017
Advance income tax 71 100
Current tax liabilities 232 62
Net current tax assets/(liabilities) (161) 38
27. Contingent liabilities, corporate guarantees and capital commitments
a) Contingent Liabilities:
Based on legal opinion/advice obtained, no financial implication to the Company with respect to the following
cases is perceived as on the Balance Sheet date.
(i) Claims against the Company not acknowledged as debt:
As at As at
Direct taxes related 1,798 1,214
Indirect taxes related 2,348 2,394
Others 428 428
(ii) The Finance Minister of Government of India has announced in the budget for the year 2010-11,
imposition of clean energy cess as a duty of excise on coal, lignite and peat. This came into force with
effect from July 1, 2010. As advised by the legal experts the Company took CENVAT credit pertaining
to clean energy cess on coal for an amount of ` 1,145 (As at March 31, 2017: ` 1,145) from July 2010
to March 2016. The Department of Central Excise issued an order and asked to reverse the amount on
the ground that the clean energy cess is not specified tax for input CENVAT credit, thus the credit
availed on cess is irregular. Based on department’s order the amount of ` 1,134 was reversed, but
under protest. The balance of ` 11 pertains to penalty imposed by the department and disclosed in
contingent liabilities under indirect taxes. The matter is pending before the Department. Credit will be
taken again once the issue is settled in favour of the Company.
b) Corporate Guarantees:
The Company has furnished a corporate guarantee of ` 15,000 to IDBI Trusteeship Services Limited to
secure the 1,500 Non-Convertible Debentures (` 10 lakhs each) aggregating to ` 15,000 (2016-17: ` 15,000)
issued by its wholly owned subsidiary, Sagar Cements (R) Limited, to International Finance Corporation and
a further guarantee to secure the credit facilities aggregating ` 6,000 (2016-17: ` 14,900) availed by the said
subsidiary from its lenders.
c) Capital Commitment:
As at As at
Estimated amount of contracts remaining to be executed on 11,358 6,606
capital account and not provided for (net of capital advance)

28. Disclosures required under Section 22 of the Micro, Small and Medium Enterprises Development Act, 2006:
Dues to micro, small and medium enterprises have been determined to the extent such parties have been identified
on the basis of information collected by the management. This has been relied upon by the auditors. The amount
of dues payable to micro, small and medium enterprises is as follows:
As at As at
The principal amount and interest due thereon remaining unpaid to any
supplier as at the end of the financial year 3 5
The amount of interest paid by the buyer under the Act along with the
amounts of payment made to the supplier beyond the appointed day
during each accounting year - -
The amount of interest due and payable for the year (where the principal
has been paid but interest under the Act not paid) - -
The amount of interest accrued and remaining unpaid at the end of the
accounting year - -
The amount of further interest due and payable even in the succeeding
year, until such date when the interest dues as above are actually paid
to the small enterprise, for the purpose of disallowance as a deductible
expenditure under section 23. - -
29. Financial Instruments:

The significant accounting policies, including the criteria for recognition, the basis for measurement and the basis
on which income and expenses are recognized, in respect of each class of financial asset, financial liability and
equity instrument are disclosed in Note 1(b)(xviii) to the financial statements.
A) Capital Management
The group manages its capital to ensure that it will be able to continue as going concern while maximizing
the return to stakeholders through the optimization of the debt and equity balances. The capital structure of
the group consists of net debt (borrowings as detailed in Notes 13 & 14 offset by cash and bank balances)
and total equity of the group. The group is not subject to any externally imposed capital requirements. The
group’s management reviews the capital structure of the group on a monthly basis. As part of this review, the
management considers the cost of capital and the risks associated with each class of capital.
Gearing ratio
The gearing ratio at the end of the reporting period was as follows:
As at As at
Debt (Refer Note below) 48,635 49,407
Cash and bank balances 5,810 17,047
Net debt 42,825 32,360
Total equity 77,920 76,296
Net debt to equity ratio 0.550 0.424
Note: Debt is defined as current and non-current borrowings as described in Notes 13 & 14.

B) Financial Assets and Liabilities:
The carrying value and fair value of financial instruments by categories as of March 31, 2018 and March 31,
2017 is as follows:
As at As at
Financial Assets
(i) Trade receivables 9,258 8,083
(ii) Cash and cash equivalents 4,100 16,178
(iii) Other bank balances 1,710 869
(iv) Other financial assets 1,966 2,617
Sub total 17,034 27,747
Measured at fair value through other comprehensive income
(i) Investments - 28
Sub total - 28
Total Financial assets 17,034 27,775
As at As at
Financial liabilities
(i) Borrowings 47,834 48,658
(ii) Trade payables 13,680 14,777
(iii) Other financial liabilities 6,807 5,536
Total Financial liabilities 68,321 68,971
There are no financial assets and financial liabilities measured at fair value through profit and loss
C) Fair value hierarchy
Valuation technique and key inputs:
Level 1 - Quoted prices (unadjusted) in an active markets for identical assets or liabilities.
Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability,
either directly (i.e. as prices) or indirectly (i.e. derived from prices).
Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable
inputs).
Quantitative disclosures of fair value measurement hierarchy for financial instruments are as follows:
Fair value measurement at the end of year using level 3
Particulars As at March 31, 2018 As at March 31, 2017
Assets
Investment in unquoted equity shares (Refer Note 4) - 28
There have been no transfers among Level 1, Level 2 and Level 3 during the year.
The fair values of the unquoted equity shares have been estimated using a DCF model. The valuation requires
management to make certain assumptions about the model inputs, including forecast cash flows, earnings
growth, discount rate, and probabilities of the various estimates within the range used in management’s
estimate of fair value for these unquoted equity investments.

Fair value measurements using significant unobservable inputs (Level 3)
Valuation inputs and relationships to fair value:
The following table summarizes the quantitative information about the significant unobservable inputs used
in Level 3 fair value measurements, being investments in unquoted equity shares:
Fair value Significant Sensitivity of the inputs
As at As at unobservable Valuation process to fair value
March 31, 2018 March 31, 2017 inputs
- 28 Earnings Earnings growth factor for unlisted Any increase in the
growth rate equity shares are estimated based on earnings growth rate
the market information of similar type would result in an
of companies and also considering increase in fair value.
the economic environment impact.
Discount rate Discount rates are determined using Any increase in the
a capital asset pricing model to discount rate would
calculate a pre-tax rate that reflects result in a decrease
the current market assessments of in the fair value.
the time value of money and risk
specific to that asset.
D) Financial risk management objectives:

The group’s corporate finance function monitors and manages the financial risks relating to the operations of
the group through internal risk reports which analyze exposures by degree and magnitude of risks. These
risks include market risk (includes interest rate risk), credit risk and liquidity risk.
The group seeks to minimize the effects of these risks by continues monitoring on day to day basis. The
group does not enter into or trade financial instruments, including derivative financial instruments, for
speculative purposes.
The corporate finance function reports monthly to the group’s management, which monitors risks and policies
implemented to mitigate risk exposures.
i) Market risk:
The group’s activities expose it primarily to the financial risk of changes in interest rates. The group
seeks to minimize the effect of this risk by continues monitoring and take appropriate steps to mitigate
the aforesaid risk.
Interest rate risk management:
The group is exposed to interest rate risk because it borrows funds at both fixed and floating interest
rates. The risk is managed by the group by maintaining an appropriate mix between fixed and floating
rate borrowings.
Interest rate sensitivity analysis
The sensitivity analysis below has been determined based on the exposure to interest rates at the end
of the reporting period. For floating rate liabilities, the analysis is prepared assuming the amount of the
liability outstanding at the end of the reporting period was outstanding for the whole year. A 50 basis
point increase or decrease is used when reporting interest rate risk internally to key management
personnel and represents management’s assessment of the reasonably possible change in interest rates.
If interest rates had been 50 basis points higher/lower and all other variables were held constant, the
group’s: Profit for the year ended March 31, 2018 would decrease/increase by ` 242 (for the year
ended March 31, 2017: decrease/increase by ` 242). This is mainly attributable to the group’s exposure
to interest rates on its variable rate borrowings.

ii) Credit risk management:
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in
financial loss to the Company. The group has adopted a policy of dealing with creditworthy
counterparties and obtaining sufficient collateral, where appropriate, as a means of mitigating the risk
of financial loss from defaults. Credit exposure is controlled by counterparty limits that are reviewed
and approved by the management.Trade receivables consist of a large number of customers, spread
across diverse industries and geographical areas. Ongoing credit evaluation is performed on the financial
condition of accounts receivable.
The group does not have significant credit risk exposure to any single counterparty. Concentration of
credit risk to any counterparty did not exceed 5% of gross monetary assets at any time during the year.
E) Liquidity Risk Management:
Financing facilities:
As at As at
Secured bills acceptance facility, reviewed annually
Total 3,700 4,700
Secured bank overdraft facility reviewed annually
and payable at call
- amount used 11,526 9,561
Total 16,200 13,700
Secured bank loan facilities with varied maturity dates and
which may be extended by mutual agreement
- amount used 21,307 24,097
- amount unused 4,000 869
Total 25,307 24,966
Secured non-convertible debentures
- amount used 15,000 15,000
- amount unused - -
Total 15,000 15,000
F) The group does not have any derivative instruments or unhedged foreign currency exposures as on the
balance sheet date.
30. Employee benefits:
The employee benefit schemes are as under:
(i) Defined contribution plan:
Provident Fund
The group makes provident fund contributions which are defined contribution plans for qualifying employees.
Under the scheme, the group is required to contribute a specified percentage of the payroll costs to fund the
benefits. These contributions are made to the Fund administered and managed by the Government of India.
The group’s monthly contributions are charged to the Statement of Profit and Loss in the period they are
incurred. Total expense recognized during the year aggregated ` 238 (2016-17: ` 191).

Superannuation Fund
Few directors receive benefit under a Superannuation scheme which is a defined contribution scheme wherein
the director has an option to choose the percentage of contribution in between 5% to 15% of the basic salary
of the covered employee. These contributions are made to a fund administrated by Life Insurance Corporation
of India. The group’s monthly contributions are charged to the Statement of Profit and Loss in the period they
are incurred. Total expense recognized during the year aggregated ` 34 (2016-17: ` 48).
Employee State Insurance
The group makes employee state insurance contributions which are defined contribution plans for qualifying
employees. Under the scheme, the group is required to contribute a specified percentage of the payroll costs
to fund the benefits. These contributions are made to the funds administered and managed by the Government
of India. The group’s monthly contributions are charged to the Statement of Profit and Loss in the period they
are incurred. The total expense recognized during the year aggregated ` 14 (2016-17: ` 10).
(ii) Defined benefit plan:
Gratuity:
In accordance with the ‘Payment of Gratuity Act, 1972 of India, the group provides for gratuity, a defined
retirement benefit plan (the ‘Gratuity Plan’) covering eligible employees. Liabilities with regard to such
gratuity plan are determined by an independent actuarial valuation and are charged to the Statement of
Profit and Loss in the period determined. The gratuity plan is administered by Life Insurance Corporation of
India.
The following table sets out the funded status of the gratuity plan and the amounts to be recognized in the
financial statements as per actuarial valuation as at March 31, 2018 and March 31, 2017:
a) The principal assumptions used for the purposes of actuarial valuations were as follows:
For the For the
Particulars year ended year ended
March 31, 2018 March 31, 2017
Mortality table (LIC) IALM 2006-08 IALM 2006-08
(Mod.) (ultimate) (ultimate)
Discounting rate (p.a.) 8% 7.90%
Expected rate of return on plan asset 7.65% / 8.05% 8.25%
Expected average remaining working lives of employees 16.05 years 16.08 years
Rate of escalation in salary 5% 5%
Attrition rate 4% 4%
b) Components of Defined benefit costs recognised in profit and loss and other comprehensive income:
For the For the
Description year ended year ended
March 31, 2018 March 31, 2017
Amount recognized in statement of profit and loss in respect
of defined benefit plan is as follows:
Interest expense 52 49
Acquisition adjustment/ New policy/ Premium adjustment - 2
Expected return on plan assets (36) (34)
Defined benefit cost included in profit and loss 97 68
Re-measurement effects recognized in Other Comprehensive
Income (OCI)
Actuarial (gain)/loss 20 37
Components of defined benefit costs recognized in OCI 20 37

c) Key Results - Reconciliation of fair value of assets and obligations:
For the For the
March 31, 2018 March 31, 2017
Present value of funded defined benefit obligations 816 718
Fair value of plan assets (476) (482)
Net liability arising from defined benefit obligation 340 236
d) Movements in present value of defined benefits obligation are as follows:

For the For the
March 31, 2018 March 31, 2017
Defined benefit obligation at the beginning of the year 718 632
Interest cost 52 49
Re-measurements - Actuarial (gain) / loss 17 37
Defined benefit obligation at the year end 816 718
e) Movements in fair value of plan assets are as follows:

For the For the
March 31, 2018 March 31, 2017
Opening fair value of the plan assets 482 435
Expected return on plan assets 37 34
Contributions from the employer 11 66
Re-measurement – Actuarial losses (3) -
Acquisition Adjustment/ New Policy/Premium Expenses 1 (2)
Fair value of plan asset at the year end 476 482
f) Sensitivity Analysis:
Sensitivity to significant actuarial assumptions is computed by varying one actuarial assumption used
for the valuation of the defined benefit obligation by one percentage, keeping all other actuarial
assumptions constant.
Increase Decrease Increase Decrease
Effect of 1% change in assumed discount rate (742) 828 (639) 757
Effect of 1% change in assumed salary rate 831 (738) 732 (656)
Effect of 1% change in assumed attrition rate 790 (774) (639) 757
Compensated absences:
The accrual for unutilized leave is determined for the entire available leave balance standing to the
credit of the employees at period-end. The value of such leave balance eligible for carry forward, is
determined by an independent actuarial valuation and charged to the statement of profit and loss in
the period determined.

The key assumptions as provided by an independent actuary, used in the computation of provision for
compensated absences are as given below:
For the For the
March 31, 2018 March 31, 2017
Discount Rate 8% -
Salary escalation rate 5% -
Attrition rate 4% -
Mortality tables IALM 2006-08 -
(Mod.) (ultimate)
The Company has made provision for compensated absences based on the actuarial valuation for the
financial year 2017-18, consequent to change in leave policy during the year.
31. Segment Reporting:
Operating segments are defined as components of an enterprise for which discrete financial information is available
that is evaluated regularly by the chief operating decision maker, in deciding how to allocate resources and assessing
performance.
The Group has identified business segments as its reportable segment. Business segments are primarily cement
manufacturing segment and power generation segment. Revenues and expenses directly attributable to segments
are reported under each reportable segment. All other expenses which are not attributable or allocable to segments
have been disclosed as un-allocable expenses. Assets and liabilities that are directly attributable or allocable to
segments are disclosed under each reportable segment. All other assets and liabilities are disclosed as un-allocable.
Property plant and equipment that are used interchangeably amongst segments are not allocated to reportable
segments.
Business segments
Particulars Manufacturing of cement Power generation Total
2017-18 2016-17 2017-18 2016-17 2017-18 2016-17
Revenue 107,195 92,701 7,690 6,160 114,885 98,861
Less: Inter-segment revenue 7,113 4,702
Total 107,195 92,701 7,690 6,160 107,772 94,159
Segment result 10,263 6,136 (497) 142 9,766 6,278
Unallocable expenses (net) 5,199 5,856
Profit before taxes 4,567 422
Tax expense (1,941) (814)
Profit/ (Loss) for the year 2,626 (392)
Business segments
Particulars Manufacturing of cement Power generation Total
2017-18 2016-17 2017-18 2016-17 2017-18 2016-17
Segment assets 131,069 129,354 12,853 16,382 143,922 145,736
Un-allocable assets 13,138 7,584
Total assets 157,060 153,320
Segment liabilities 36,754 31,359 1,985 3,461 38,739 34,820
Un-allocable liabilities 4,094 3,107
Total liabilities 42,833 37,927

32. Related Party Disclosures:
The list of related parties of the Group is given below:
Name Relationship
Key managerial personnel (KMP)
Swaminatha Reddy Onteddu Chairman of the Board of Directors
S.Veera Reddy Managing Director (MD)
Dr.S. Anand Reddy Joint Managing Director (JMD)
S.Sreekanth Reddy Executive Director (ED)
Kolappa Thanu Pillai Director
T.Nagesh Reddy Nominee Director
Valliyur Hariharan Ramakrishnan Director
Rachana Sammidi Director
John Eric Fernand Pascal Cesar Bertrand Director
S.Sahithi Executive Director (ED) (in subsidiary)
K.Prasad Chief Financial Officer (CFO)
R.Soundararajan Company Secretary (CS)
Relatives of KMP:
S.Vanajatha Wife of S. Veera Reddy
Panchavati Polyfibres Limited Enterprise where KMP along with their relatives exercise significant
influence
Sagar Power Limited Enterprise where KMP along with their relatives exercise significant
influence
RV Consulting Services Private Limited Enterprise where KMP along with their relatives exercise significant
influence
Sagarsoft (India) Limited Enterprise where KMP along with their relatives exercise significant
influence
Summary of the transactions and balances with the above parties are as follows:
March 31, 2018 March 31, 2017
Purchase of raw materials Panchavati Polyfibres Limited 4,965 4,107
Rent expenses paid Dr. S. Anand Reddy 29 29
S. Vanajatha 28 28
Total 85 85
Services received Sagarsoft (India) Limited – Staffing 40 47
resource services
RV Consulting Services Private Limited – 2,121 890
Consultancy services
Total 2,161 937

March 31, 2018 March 31, 2017
Reimbursement of expenses Sagarsoft (India) Limited 12 6
received RV Consulting Services Private Limited 9 6
Total 31 18
Dividend income Panchavati Polyfibres Limited (`26,000
received in the current and previous year) - -
Repayment of advances given RV Consulting Services Private Limited 50 -
Advance given RV Consulting Services Private Limited - 40
Compensation to key managerial personnel:

For the year ended
March 31, 2018 March 31, 2017
Short-term benefits MD, JMD, ED, CS and CFO 723 415
Other benefits Chairman, MD, JMD, ED, CS, CFO and 22 71
non-executive and Independent Directors
Outstanding balances:
As at As at
Nature of the balance Party Name March 31, 2018 March 31, 2017
Advances and deposits given Sagar Power Limited 767 756
RV Consulting Services Private Limited 4 50
Total 771 806
Trade payables Sagarsoft (India) Limited 1 3
Panchavati Polyfibres Limited 560 307
Total 561 310
Payable on purchase of RV Consulting Services Private Limited - 32
property, plant and
equipment
Rent payable Dr. S. Anand Reddy 2 2
S. Vanajatha 2 2
Total 6 6
Payable to KMP Short term benefits payable to - 18
key managerial personnel
33. Operating Lease
The Group has taken various residential premises, office premises and warehouses under operating lease agreements.
These are generally cancellable and are renewable by mutual consent on mutually agreed terms. The operating
lease expense recognized in the Statement of Profit and Loss aggregate ` 221 (2016-17: ` 220).

34. Earnings per Share
For the For the
March 31, 2018 March 31, 2017
Profit/ (Loss)after tax (` in lakhs) 2,626 (392)
Weighted average number of equity shares outstanding 20,400,000 17,891,681
Earnings per share:
Basic and Diluted (in ` ) 12.87 (2.19)
35. Corporate Social Responsibility (CSR) activities:
As per Section 135 of the Companies Act, 2013, a Corporate Social Responsibility (CSR) committee has been formed
by the Company. A company meeting the applicability threshold of this section needs to spend at least 2% of its
average net profit for the immediately preceding three financial years on CSR activities. The areas for CSR activities
are promoting sports, education, adoption of schools, medical and other social projects. All these activities have been
covered under Schedule VII to the Companies Act, 2013. The Company has spent an amount of ` 95 (2016-17: ` 47)
towards CSR activities based on the recommendations of CSR Committee constituted by the Board. Expenses incurred
on CSR activities are charged to the Statement of Profit and Loss under Other Expense.
36. The Group has certain mining leases granted by the Government for limestone mining in Pedaveedu Village,
Mattampally up to August 17, 2024 and in Gudipadu Village, Tadipatri upto December 14, 2035.
37. During the year 2016-17, the Company has raised amounts of ` 4,896 and ` 17,280 through preferential issue of
equity shares and Qualified Institutional Placement (QIP) issue respectively. The objective of raising funds through
preferential and QIP issue was to meet the capital expenditure requirements for expansion of the grinding unit in
Bayyavaram to 1.5 million MT and to setting up a coal based captive power unit of 18 MW capacity at its plant in
Matampally, Nalgonda District, for other general corporate purposes and any other purposes as may be permissible
under applicable law. A part of the amount was used for the purpose for which it was raised and the balance amount
is invested in fixed deposit pending utilization.
38. Dividends:
The Board of Directors of the Company declared and paid an interim dividend of ` 2.50 per equity share (25%) on
2,04,00,000 equity shares of face value of ` 10 each during the year. Further, a final dividend of ` 1.50 (2016-17:
` 1.50) per equity share (15%) for the year 2017-18 on May 29, 2018 has been recommended by the Board of
Directors, subject to the approval of shareholders at the Annual General Meeting. The dividends declared by the
Company are based on the profits available for distribution as reported in the financial statements of the Company.
39. The Government of India introduced the Goods and Services Tax (GST) with effect from July 01, 2017. Accordingly,
in compliance with Indian Accounting Standards (IndAS) 18- ‘Revenue’, Revenue from operations for the year ended
March 31, 2018 is net of GST. For the year ended March 31, 2017, Revenue from operations includes excise duty
which is now subsumed in GST.
40. These consolidated financial statements were approved by the Company’s Board of Directors on May 29, 2018.

134
Sagar Cements Limited - Annual Report 2017-18 All amounts are in ` lakhs unless otherwise stated
41. Disclosure of additional information as required by Paragraph 2 of the General instructions for preparation of consolidated financial statements to
Schedule III to the Companies Act, 2013:
As at and for the year ended March 31, 2018:
Net assets, Share of Share of other Share in total
i.e., total assets profit or loss comprehensive comprehensive
Name of the entity
minus total liabilities income income
% of total Amount % of total Amount % of total Amount % of total Amount
Sagar Cements Limited (Parent) 106% 82,383 188% 4,939 167% (20) 188% 4,919
Sagar Cements (R) Limited (Subsidiary) 9% 7,368 (82)% (2,147) (67)% 8 (82)% (2,139)
Adjustments arising out of consolidation (15)% (11,831) (6)% (166) - - (6)% (166)
Total 100% 77,920 100% 2,626 100% (12) 100% 2,614
As at and for the year ended March 31, 2017:
Net assets, Share of Share of other Share in total
i.e., total assets profit or loss comprehensive comprehensive
Name of the entity minus total liabilities income income
% of total Amount % of total Amount % of total Amount % of total Amount
Sagar Cements Limited (Parent) 103% 78,447 319% 1,249 17% (4) 300% 1,245
Sagar Cements (R) Limited (Subsidiary) 12% 9,507 (377)% (1,476) 83% (19) (360)% (1,495)
Adjustments arising out of consolidation (15)% (11,658) (42)% (165) - - (40)% (165)
Total 100% 76,296 100% (392) 100% (23) 100% (415)
42. Previous year’s figures have been regrouped/ reclassified wherever necessary to correspond with the current year’s classification/ disclosures.
S.Veera Reddy Dr.S.Anand Reddy

Managing Director Joint Managing Director
S.Sreekanth Reddy K.Prasad

Executive Director Chief Financial Officer
R.Soundararajan
Company Secretary
Place: Hyderabad
Date: May 29, 2018
Registered Office: Plot No.111, Road No.10, Jubilee Hills, Hyderabad-500 033
CIN : L26942TG1981PLC002887
Tel.No.: +91-40-23351571 Fax No.: +91-40-23356573 E-mail: info@sagarcements.in Website: www.sagarcements.in
ATTENDANCE SLIP
37th ANNUAL GENERAL MEETING ON THURSDAY, THE 27th SEPTEMBER, 2018 AT 4.00 P.M.
at Hotel Golkonda, Masab Tank, Hyderabad-500 028
Folio No. DP ID No. Client ID No.
I/We hereby record my/our present at the Thirty Seventh Annual General Meeting of the Company at Hotel Golkonda, Masab
Tank, Hyderabad, at 4.00 p.m. on Thursday, the 27th September, 2018.
Name of the Member : Signature :
Name of the Proxyholder : Signature :
Notes: 1. Only Member / Proxyholder can attend the Meeting.
2. Please complete the Folio No./DP ID No., Client ID No. and name of the Member / Proxyholder, sign this Attendance
Slip and hand it over, duly signed at the entrance of the Meeting hall.
3. A Member / Proxyholder attending the meeting should bring his/her copy of the Annual Report for reference at the
meeting.

Registered Office: Plot No.111, Road No.10, Jubilee Hills, Hyderabad-500 033
CIN : L26942TG1981PLC002887
Tel.No.: +91-40-23351571 Fax No.: +91-40-23356573 E-mail: info@sagarcements.in Website: www.sagarcements.in
PROXY FORM
(Pursuant to Section 105 (6) of the Companies Act, 2013 and Rule 19 (3) of the Companies
(Management and Administration) Rules, 2014)
Name of the Member (s) :
Registered address :
E-mail Id :
Folio No. / Client ID No. : DP ID No.
I/We, being the member(s) holding shares of Sagar Cements Limited, hereby appoint:
1. Name: Email ID:
Address:
Signature or failing him;
2. Name: Email ID:
Address:
Signature or failing him;
3. Name: Email ID:
Address:
Signature
as my/our Proxy to attend and vote (on a poll) for me/us and on my/our behalf at the Thirty Seventh Annual General Meeting of
the Company to be held on Thursday, the 27th September, 2018 at 4.00 p.m. at Hotel Golkonda, Masab Tank, Hyderabad-500
028 and at any adjournment thereof in respect of such resolutions as are indicated below:
P.T.O.
Sl. Description of Resolutions
No.
1 Adoption of audited stand-alone and consolidated financial statements, report of the Directors and auditors for the year
ended 31st March, 2018.
2 Confirmation of the Interim Dividend already paid and declaration of a further dividend as detailed in the notice.
3 Re-appointment of Dr.S.Anand Reddy, who retires by rotation and is eligible for re-appointment, as Director.
4 Re-appointment of John-Eric Fernand Pascal Cesar Bertrand, who retires by rotation and is eligible for re-appointment,
as Director.
5 Amendment to the Memorandum of the Association of the Company as detailed in the notice.
6 Ratification of remuneration payable to the cost auditors.
Please
Signed this _____ day of _______________ 2018 affix
Re. 1/-
Revenue
Stamp
Signature of shareholder ____________________ Signature of Proxyholder(s) ________________________
Note: 1. This Form in order to be effective should be duly completed and deposited at the Registered Office of the Company
at Plot No.111, Road No.10, Jubilee Hills, Hyderabad-500 033, not less than 48 hours before the commencement
of the Meeting.
2. A proxy need not be a member of the Company.
3. For the Resolutions, Explanatory Statement and Notes, please refer to the Notice of the 37th Annual General Meeting
of the Company.

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t!

) SAGAR CEMENTS LIMITED

SCL:SEC:NSE:BSE:2018-19 I 0th October 2018

The National Stock Exchange of India Ltd., The Secretary

Symbol: SAGCEM ocl':502090

Directors' Report with Annexures 11

Corporate Governance Report 36

Independent Auditors’ Report 50

Statement of Profit & Loss 56

Cash Flow Statement 58

Notes to the Financial Statements 60

Independent Auditors' Report on Consolidated Financial Statements 92

Consolidated Balance Sheet 96

Consolidated Statement of Profit & Loss 97

Consolidated Cash Flow Statement 99

Notes on Consolidated Financial Statements 101

Attendance Slip and Proxy Form 135

Route Map 137

Sagar Cements Limited - Annual Report 2017-18 1

2 Sagar Cements Limited - Annual Report 2017-18

SAGAR CEMENTS LIMITED

5. Amendment to the Memorandum of Association of the Company.

Sagar Cements Limited - Annual Report 2017-18 3

4 Sagar Cements Limited - Annual Report 2017-18

Sagar Cements Limited - Annual Report 2017-18 5

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Sagar Cements Limited - Annual Report 2017-18 7

By Order of the Board of Directors

8 Sagar Cements Limited - Annual Report 2017-18

Sagar Cements Limited - Annual Report 2017-18 9

By Order of the Board of Directors

10 Sagar Cements Limited - Annual Report 2017-18

DIRECTORS’ REPORT AND MANAGEMENT DISCUSSION AND ANALYSIS REPORT

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Hyderabad O. Swaminatha Reddy

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S.Veera Reddy K.Thanu Pillai

Hyderabad, 19th July, 2018

I. Registration and other details

II. Principal Business Activities of the Company

III. Particulars of Holding, Subsidiary and Associate Companies

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(c-ii) Hindu Undivided Families 0 0 0 0.00 0 0 0 0.00 0.00

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