P.K & Associotes

Charlered Accountonts

Tebqhaf , Kothnondu, P.O. Box No. ?132, Ph.-4ZZ?538

Shio am Cemet t s Limite iL

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We havc audited the accompanying financial statements of Shivanr Cements Limited: $.Nch conrprise theSratenrent of Financill positionas at fuhad 32n d, m75 $uly rc, zrin! and the related Statenrent ot Prafit or bss, staremenr of changes in Equi\r anl Statement of CashFlows for the Period ended on that date.

M anagonanf s Rzsvonsibili ty /o ( the fidancial StateacatsManagement of the company k responsible for the preparation and fair presentation of these financi.rl Statenrents in accortiancr ryithNepal Accounting Standards. This resporuibility inctudes designing, implerrenting and nraintairring internal mntrol relevant to l6eprcparation and fair presenlation aI ti.a.rcialstatements that are free from nraterinl mirstntenrent, rthetirer 4ue to fraud or error; srlettirrgand apglying appropriate accounting policies; and making accounting estimntes th,rt are ri:asonatdr: in the circunlstalrces.

At d i t o t/ s R es fl o Bi l' il i tyO-ur rcs_pon;ibilir'/ i9 lo exprest an opinion on thecc {inancial rtatemcntr bascd cn cur audit. l!,c eonductr:rl orrr cudit lt actcrdlnce rvithNcpal Standards on Audiling. Tho:c Standards r*guire that rrc ccmply n-ith ethkal rtpirf,nlcnts ontl plarr and pcrfornr thr audit toobtain rcaronablc asssrancc about *'hether lhc {iruncirl rbtrmcnts an lmr fmm nrtcriil nlia{titcnlr,rtt.An autf it involvcs perktrming pr<xcdurcx ln olrttin auclit er.ir!r.r$r.rlrrut tlre ilfir$unt-\ iuril rli$dosurcs in thc finnnCill stalenrcnts. Tlreprrrcctluressc|ccter'ldcpcntIonourprof**riarr.rljurr5rnr*"rrre|r:ilinxllre*sgtrrnlrnl$'|h("risL.i$tal0nlcnl..',whclhcrr|rrcklfralrd0'(.r'0r,|nnuLirrxth<xenr!.'{!,{lts!:1fnl.r,preporrtitrnatrrlfair|)'c5cn|irti('ntr{thc{irr.rlxir|!|"1'f''!$11ht**rtlrrttrtcti1t;ttli|i|irrtrct't|rtrcircunlrlance!t,brrtnotfortlr*pur;tieo{crpr*sling.rnrrprni*nrtrrh*{*nrpany'rintcrr.rltintml.r\rrnurlitnlsoinclttt'lcsnpproprialcrlc.ssrrflhcnccounlln6po|ici*iu*r|ur!|ltllrrg$;i}!qt.a1*,dfm$nlin}:cstitrr;l|s'snrat|ctryevalilnting tlrc ovcrall prc.{*ntttioil $f lhr finalxirl rt:rrfi*c!1tr

Wc bclicvc tlrirt thc nurlit avidcnce rvc ablainrd tr ru{f*r:r* | *$ *yyt*V'ttalr r!'} f r#!,i(l* $ hrrii.s fw our opinion.

llrr.sis /rrr Diseltinrcr of OpiniottThe|ngtitutcofC|tart*rct|Accnunltrnt*o(N*p,r|{I(AtJch.rn6*|tlrrr11trc*hle|rrrr.rri*l|tr.1wr|ingl'r;rnrr.wtlrltItcportitrg Slnldllrdr (Nfn$)" fmnr "llrpnl,rlrrortlirrlg" $tarrd,rrtrfitranclalr(Po}|illllfranrcl.r,orkrerprirct||r,lrr,ri|jontn**flts***t!*th}u|1,'3fl&Posilicn, Two Sitrlcntents of Conrp*hr.nsir.r Inronre, C**h Ft**, {f*ngr* tn lfuh1., Trro $aparale brconrc St1tcnlcnf$ an4 rclalcrl notcs,inclurlirrrt conrp[rntivc Infornrntion.

I-lorvcver, Firrnnciat statenrcnt of ShiYnnr ccnrr'ntx timited. h*r nr{ b,ffn prrparcd b.rs*d cn Transitjnnal provision of NFRS - 1 whic}rrcquirct klcntificntio& l{estnlcment, Itrcstntalisn & Di*clcoure *l Finaxi.rl lnfcrmalion ba:cd on nsw accounting poticies as per NFRS.

Tlrc eumtrhtive cffeet ol not R("shtin& Prestnling & Disclcsing Finrrrcial Infornration in compliancc with Transitional l,rovision of NF,I€Ls unccrtailr antl coulcl bc nrntcrial & frcrrasivt.

Disclahner of OpittionBrcruse of sigrificnnce ol the nratters described in lhe Basis fsr Disclaimer ol Opinibn paragtaph, wc havc not bren abtc to obtainsufficicnt appropriate audit evidence for cumulative effec! of not rertating financial iterns and making aclditional digosure u. ,"quir",l bifirst tinrc adoptcr of NfR$ to provide a basis for an audit opinion Accordingly, we do not express an opinion on the financiat stutemeniswhich havc not becn prerrared in accordancrg rvith I\FRS .

Refort on OtherLeeal adl Regtlatoru RcauireneatsOn thc basis of our examination anrl explanations gwen to us. u'e n'ould like to report tha!lfe havc olrtainetl all the infomution antl explanations,'which r*ere considered necessary for the purpose lor our audit.Conrpany has kepl proper lnoks of accounls as tequired by law, so far as it appears from examination of those books of account.'lhe Statement of Financial Popitio+ Statenrent of Profit or [nss, Cash FlsB'Statement, Statement of C]ranges in Equity dealt with by thisreport is in agreenrent r*ith the b'ooks of account nraintained by the Company.

iv. During our cxanrinatiorr of the lnoks of account of th€ Company, we have not ccnr across thc cases where the Board of Directors or anvmember of there or any rePresentatiee or any of6ce holder or any ernployee of the Company has acted contrary to the prwisioru of law o'rcaused loss or danuge lo the Conrpann and

v- lVe have not cone across anv fraudulence in the accouflts.

?lace: KathnranduDater JDTC; €.Dg

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Shivam Cements Limited.

Etatement of Financial Position

As On 32nd Ashad, 2075 (76thfuly,2018)

InNPRsN. Particulars Note Ashad-32,2075 Ashad-Sl,2V74

A Assets

Non - CrrreittAssifsProperty, Plarrt & EquipnrentlnvestmentDeferred Tax Assets

1

z

4,649,087,224.63

3,965,703,000.04

3,656,900.00

4,793,907,005.42"1,,276,040,000.00

24,592,317.80

Total Non - Current Assets 8,0a/-.8,441,124,63 5,494499,32L42

Current Assets

Cash & Cash Equivalents

Inventories

Trade Receivalrles

Advances, Loan & Deposits

c4

5

o

94,993,627.97

2,259,429,780:1"6

7,778,772,799.38

1,171,763,004.1'1,

20,593,764.49't.,6a4,713,342.90

918,55\,777.33

5A7,612,A80.90

Total Current Assets 4,7M,959,211,62 3,050,870,365,62

Total Assets 72,763,400,336.25 8,545,369,688.04

B Equity & LiabilitiesEquityFwrdEquity Share CapitalRetained Earnings 8

3,872,000,000.00

2,385,424,'1.07.35

2,500,000.000.00'J.,49't,429,394.56

Total Equify Fund 6,257,424,707.35 3,991,429,394,66

Non - Currut LialtilitiesInterest Bearin g Borrowings

Provisions & Payables

9

10

2,484,CI77,439.49 2,350,871,619.74

Total Non - Current Liabilities 2,494,017,439.49 2,350,871,6L9.24

Current LiabilitiesInterest Bearing BorrowingsTrade PayablesProvisions & Payables

9

10

7,813,69A,677.95

960,966,311..60

1,?47348,?59.87

875,997,875.83

664,736,?41..?3

6623]4,357.48

Total Current Liabilities 4;021965;189.42 2,203,A68,674.74

Total Equify & Liabilities 12,7634A0,336.26 &545,369,688.04

Significant Accounting Policies &Notes to Finadcial Statement

Kathmand

76

As Per Our Attacheil Report of Even Date

CA. Parul KediaProprietor

Date:3oF5'd

Shivam Cements Limited'Staternent of Profit or Loss

For the Period Ending 32nd Ashad,2075 (76thluly'20781

InNPRsN. Particulars Note Current Year Previous Year

1

2

Reveirue Fro,q Operatiorr

Cost of Sales 17

7A,265,064,452.04

6,817,373,992.04

7,363,683,755.26

4,907,W0,699.72

3 Gross Profit (1-2) 3,447,750A60,40 2,456,653,9555,4

4

J

Other Income

Expenses:

Administrative Expense

Distribution Expense

Depreciation & AmortizationFiuarrcial Charges

12

13

14

7

15

6,968459.46

1.67,6?3,459.36

657,791,785.92

675,g51.,834.93

366,875,A39.31

't6,484,489.41

't473U,572.54

363,463,860.52

7ffi,7M,990.87

206,171,979.29

fotal Expenses 1,857,642A19,53 7A20,115,343.77

6 Net Profit/{Loss) Before Bonus & Tax {3+4-5) 7,587,476,799,93 't,a53,027,801.77

7 Statutorv Bonus 744,279,7'I0.DA 42000,000.00

I Net Profit/(Loss) After Bonus & Before Tax (*\ 7,M2,797,489.93 7,A77,02X,801"77

9 Provision For Corporate Social Responsibility 1.4,427,974.90 ^10,710,278.02

10 Net Profit/(Loss) Before Tax (8-9) 7,428,369,119.03 1,000,911"583.75

11 Tax Expense{a+b) 285,094,A29,00 18953&705.00

[a) Curlent Tax

fb) Deferred Tax

264,1.58,672.04

2A,935,417.40

188,777,266.04

1,4:11,,M4.44

17 Net Profitlposs) For the Period (10-11) 1;143,275,090.03 871,372,877.75

othPart

rr Comprehensive Income Not Falling as

of Profit or Loss Statemen* -Sain/Loss on Translation of Foreign CurrencyShanges in Revaluation Reserve

13 Total Other Comprehensive Income

Iota Comprehensive Incorne to Equity (12+13) ,.,L43.275,490.A3 8I7,372,877.75

Significant Accounting Policies &Notes to Financial Statement t6

As Per Our Attached of Even Date

For: P. K. sFsSiS

CA. Parul Kedia

Proprietor

Shivam Cements Limited'Statement of Cash Florv

For the Period Ending 32nd Ashad,2075 (15thluly,2018)

NPInNPRs.N. Particulars Current Year

A

FF')

v/-t

CashFlow From Operating Activities:Net Profit After Tax

Non Cash & Non Operating Activities

Depreciation & A mortizationFinancial Charge on Long Term Financing

Gain on Sale of Land

CSR Payable lVritten Back

Deferred Tax Expense

Changes in Working Cagital

Clranges in InventoriesChanges in Trade Receivables

Changes in Advances, Loans & Deposits

Changes in Current Liabilities

'1.,'1.43,275,090.03

960,908,088.19

675,951,834.93

250,051,213.61

13,969,6n.65

?0,935,4:t7.00

199,207,532.76

655,316,137.26

300,2?1,622.05

66r,150,923.21

1,818,896,515.2S

Net CashFIow From Opcrating Activities 23A3390,714.99

B CashFlow From lnvesting Activitics:Acquisition of I'roperty, Plarrt & frlaiprnenlIieccipls Fronr Disposal of Fixetl .,\ss*l*

Irrsurance lleceipts For Fixcd r\*s{:ts llantltr;r-'s

Irrcrcasc in Invcsttncttl in Sltivanl l-k-rldilrli Prr l.'ltl

1,13+,903,065.30

3,782,0'11"62

?,0139,703,000.00

Nct CirshFlorv Fronr Invcsting Activilit's 3,220,8?9,053.68

c CashFlow Fronr financing Aclivit ics:

Fresh Issrre of Equity Shnre Capital

Net Changcs in Ternr Firrlncing

Financing Charges in Ternr Finnncing

Distribution of Divielend

1;72,000,000.00

133,139,424.25

250,05.1,214.08

263,254,004,04

Net CashFlorv From Financing Activities 991,838,7A6,17

D Net Changes in Cash & Cash Equivalents 74,399,863.48

E Effects of Changes in FOREX

F Opening Cash & Cash Equivalents 2A,593,7&.49

G Closing Cash & Cash Equivalents 94,993,627.97

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Slrivam Cements Limited.Notes Forming Part of Financial Statement

For the Period Ending 32nd Ashad ,ZA7S (76th|uly,201g)

Investment

Cash & Cash Equivalenis

Figs.IrNPRNote - 2

Note - 3

SN. Particulars Ashad-3Z,2075 Ashad-37,2W4

1

lnvestmeFt in Equity Shares ofShivam Holdine (P) l,td:-CY:35.200,000 Equity Shares @ NPR 9S.6tA6

{PY: 12,760,000 Equity Shares @ NPR 100.00)

3,365,703,AA0.00 7,276,000,000.00

Total Investment t361703,000.00 1,276,840,W.4O

sN. Particulars Ashad-32,2075 Ashad-3t,2W4A Cash in Hand 327,204.46 507,X54.24

At ljetauda Branch

At Kathmandu Corporate Office1,87,766.72

144,037.M

761'419.29

246,lM.95B Balance Maintained At BFI 94,242,2503A 19,749,090.65

lCenhlry Comnrercial Bank Ltd.t'lEverest Bank Ltd.I

lCtottat Bank Ltcl.

lruaUit Bank - Dharauti A/C

lNepal Bangladesh Bank Ltcl.

lNepal Bank Ltd.NepalS,B.I.Bank Ltd.NMB Bank Ltd.Rastriya Baniiya Bank Ltd.Sanima Bank Ltcl.

Bank of Kathmandu Ltd., HetauclaSiddhartha Bank Ltcl., HetaudaNepal Investment Bank Ltd., HetaudaNIC Asia Bank Ltd.

'1,866,498.72

?'1,929,736.27

23,919,114.29

47,931.1,6

6,954,908."14

514,220:tA'11,837,^191.67

10,380,304.41"t4342.69

228,766.09

21",650.00

5,802,500.00

75,970.00

14,713,756.77

326,909.32

6,715,692.22

2,476,529.24

1A37.1.6'1,,429,M6.88

3,148,338.11

5,696,495.02

367,827.y3

1,0,642.69

235,6?r'.,48

C Balance Maintained At FOREX 4U,173.61 338,519.50

Cash In Hancl - Chinese Yuan

Cash In Hand - USD

Cash At Bank - NIBL USD Card

294,34:8.76

\ 77,631,.40

5e193.45

218,??3.60

72,5V.00

47,742-00

Total Cash & Cash Equivalents (A+B+C) {:^ENfu}q3,627.97 24,593,7&.49

r*?,

PJ M)€t(

I

Shivam Cemenfs Limited-Notes Forming Part af Financial Statement

For the Period Ending 32nd Asha4 2075 (16th luin 2018)

lnventories

Trade Receivables

Frgs Ia NPRNote - 4

Note - 5

5N. Particulars Ashad-32,2075 Ashad-3l,2074A Raw Materials {Clinker/Cement}: 1381.338,080.73 u03.282902.64

Limestone

Iron Ore

Bouxite

MarbleGypsum

1,?3{,{.1'{,181-43

16"007,536.64

47"/8.5t2.93n7,459.96

27.S30.359.76

"1,a74,784,979.73

1*,0s8381.83

?,7V8,51?.93

29,184.96

11,636,873.19

B Powcr & Fuel: 318,142F99.5i1 187,339,631,07

Coal

Coal Stock af ltarwanipurFurrrace ()ilDiesel

196,596,663.0S

110320,560.16

4,602,699.42

$,622,676.88

"17.1,811,280.20

4,$89,.167.29

7,638,883.58

C Packins Materials: 23,679,4:14.97 24,625,782.87

Polv Bar n,679,0t4.97 20,(r25|l&2.e7

D WII'Stock: 3,\O9,217.42 2,454,324,94

Rau, MillStock 3,"109,2:t7.42 2,454,324.90

I Firrished Stock: 438,016,603.36 1?5,365,591.52

Cernent in Silo

Clinker

Clinker Stock at Paiwanipur

14,722,935,24

24A,94t,564.66"t52,932,743.45

49,731.,327"91

75,634,263.61

F Other Stock 795,74J,2&.75 165,M0,7CI9.9\

Stores & Spares 195,744,2&.15 165,44A,709,97

Total Value of Inventorv 2,759,429,784J6 7,6A4,773,34L90

sN. Particulars Ashad-3Z,7W5 Ashad-3l,2874

1 Debtors (Cement I Clinker lOthers) 1,218,772,799.38 918,551.fn33

Total Trade Receivables L218,n2,799.38 %8,SStlns3

Shivam Cements Limited.Notes Forming part of Financial Statement

For the Period Ending 32nd Ashad, Z07S t16th IuIy, 201g)

Advances, Loan & Deposits

Frgc ftilr{PR

Note - 6

Note - 7

sN. Particulars Ashad-32,2075 Ashadr?l,2074A Against Taxation

299,607,684,53 203,726,7A9,26Advance Income TaxVAT Aelvances

?60,26'1.,738.27

39316,546.26

?43J26,708.26

B Prepaymenty'Prepaid539,419,795.40 5,432J08.21

Prepaid Expense

Insurance - Open PolicyPrepaicl Expense - Coal at HaldiaIPO Preliminary Expenses

30.695,496.61

379,842.04

486,451.,609.15

"1,893,S37.60

5,432,308.?1

C Deposits 10,810J23.51" 9,759,476.51Uu$tom Deposit

Other Deposits

Deposit Against Tax Assessment

3,131,947.60

3,1.17,527.95

.1,508,047.96

2,773,940.60

2,477,527.95

4.508,047.96D Letter of Credil 10J62.155.98 9,707,792.09E Bank Cuarantee/Margin 2.8d0,634.00 1,246,524.A0F LC Margin 4,403,9?9.$0G Other Advances & Lcans 3(X,313,9.t0.89 278,345,931,.84

Advance For Expenscs

Advarrce tr: SuppliersAclvnncc Against Lalrd lturclrascShare Application h.loney {$hiv*rm llolding}A,dvlrrce Against Stnff & Lrbors

1,375,401,64

29,1,8-13,375.32

1,66.1,000.00

6.430,163,93

2,637,999,22

256,212,534"06

5,547,726.00

t838,500.007,"t09,173.56

Total Advances, Loan & Depcsil* {A*fr+C+t}+U+i:} 1,177,763,0A4.11 507,612,A90.90

Equity Share Capital

SN. Particulars Ashad-32,2A75 Ashad-S"J,,2074A Authorized Equity Share Capital

70,000,000 Equity Share @ NPR 100.00 Each 2000,00CI000.00 2000000,000.00B Subscribe{fssued Equity Share Capital

50000000 Equiry Share @ NPR 100.00 Each 5,000000,000.00 5,000,000,000.00c Paid Up Equity Share Capital

38,720,A40 Equity Shares @ NPR 100.00 Eaclr(25,000,000 Equity Shares @ NPR 100.00 Each)

3,872.,440,004.0A

?500,00o000,00Eq u ity Share Capital At Reprcfffn* Q:--tS 3,872,440,088.00 2"500000,000.00

a

w;q

Shivam Cements Limited.Notes Forming Part of Financial Statement

For the Period Ending 32nd Ashad, Z0?S (16th July, 2019)

Retained Earnings

Interest Bearing Borrowingb

Figs InNPRNote-8

Note - 9

sN. Particulars Ashad-32,2075 Ashad-31,2074A At Beginning of Reporting Period 1491,429394.66 890,656$6.91(*)

{+)(-)

Profit/(lross) For the Period

Provision For CSR Written Back

Dividend Distribution from Previous Year's Profit

1,143,275,090.03

73,969,6n.65

253,250,000.00

877,372,9n.75

210,600,000,00B At Closing of Reporting Period 2385,424;t07.35 1,491,429,394,66

sN. Particulars Ashad-32,2075 Ashad-31,207{A Hire Purchase Loan Agreement From: L81,072,312.79 125J19,745.30

Bank r:f Kathmandu Ltd.NabilBank Ltcl.

Nepal Investment Bank Ltd.

1ru63,958.66

+5,10,3,090.00

38'600,?6,t.13

20,137,312.83

52136,818,00

{8,245,614.47B Long Tgrrn Loan Arrangement (Consortia) From: 2,382,938,7?6.70 2,225,351,873.94

Phase I ;Ilank of Kathmandu LtdLaxmi Bank LtdNitbilllank LtdNepalBank Ltcl

Nepal Investmerrt llank LtdNepnl$lll Bank Ltcl

NMB lJnnk LtdRastriya llanijya Bank Ltcl

Saninu Bnnk Ltcl

Sitldhartha Ilank l-tel

Plrase II :

Barrk of Kathmanclu LtdNabilBank LtdNepal Investment Bank Ltdianinra Bank LtdPhase IV:Laxrrri Bank Ltd)Iabil Bank Ltd\lepal Investnrent Bank Ltd\Iepal SBI Bank Ltdlastriya Banijl'n Bank Ltdiarrinra Bank Ltd , ')hase V:]ank of Kathmandu Ltd-axmi Bank Ltc{

{abil Bank Ltd{epal Bank Ltdilepal Investment Bank Ltdkstriya Banijya Bank Ltdianima Bank Ltdiiddhartha Bank Ltd

Ica\

-\. L:'

a"th.

er.a,ueo,1

%"

319,993,708.0{) 559,992,001.00

?s,56$,000.00

18,571,708,00

65.704,000.00

35,70.1,000,00

6.1,?8O000.0t)

21,'132,0CI0.00

11,432,000,00

?8,569,000.00

1'1,296,000.00

2l,il3?,004.00

d9,992000.00

'19,999,001.00-114,991,000,00

62,491,000.00

11e499,000.00

37,503,000.00

---20,003,000,00

49,997,AA0.A0

25,009,000.00

32503,000.00

54,005,999,39 77,747,999.39

III

I

I

II

I

5,AA5,999.38

?5,409,000.aa

1't497,004.00

12,494,000.AA

7,747,999.39

35,722,404,00

16,426,444.0A

77,852,04A,AA

z4'1",892,932.94 3M,362,778,30

20,550,795.2A

87,577,707.A0

74,546,451.74

?3,q32,94't,.00

19,575,770.40

21,749,855-00

24,876,552.0A

143,045,707.00

94,077,8y33A

n0,276,947.00

24,719,77A.0A

27,465,955.0A't338,0U,779,39 7,293,M9,155.26

100,853,000.00

119,892,999.90

380,71,4,400.AA

112,231,AAA.AA

334,294178.58

95,834,349.47

173,909,937.75

36't,7-t6,559.44

146,677,27A.76

326,360,97A.85 Is)\\

r4u,H,wv,vu I Lt+,or+,t'v,?f(

ti 105,620,000.00 | 100J4S,ee5#S

I 6z,s59,ooo.oo | 64,t87,!a4s.V*

e\r$rIF

'Fr

\ ' '"i;\'-'

Shivam Cements Limited.Notes Forming Part of Financial Statement

For the Period Ending 32nd Ashad, 2075 t16th July, 2018)

Fiss.InAIPR

l'hase vIl :

Bank Of Kathmandu Ltd.

Laxmi Bank Ltd.Nabil Bank Ltd.

Nepal Bankltd.Nepal Investment Bank Ltd.Nepal9bi Bank Ltd.Rastriya Ban\ya Bank Ltd.

Sanima Bank Ltd.

Siddhartha Bank Ltd.

428,98t",948.W

29,793,429.00

34,789,967.04

152153,5n.0020,370574.40

1A6,726,927-04

8,i185356.00

35,072807.00

2rt,602434.00

16,78a1{9.00

C Overdraft Arrangement/Fa'cility From: 9723s8J86,9s 800,997,875.e1

Bank of Kathmandu Ltd.

Laxnri Bank Ltd.Nabil Bank Ltd. (Fletauda Branch)

Nabil Bank Ltd. (Kathmandu Branch)

Nepal Investnrent llank Ltd.

llastriya ilanijya llank Ltd.$anima llank Ltd.Sicldhartha Bank l.tcl,

Nepal Bank Ltd,NepnlSlll llank Ltcl.

Nabil llank - Credit Carc{

51,575.S14.01

1i10,056.953.18

13.?12,179.55

.146,733,253.61

73.650,436..16

136,213,884.35

77,759,479.67

9,113,173.35

78,?15,139.00

1,818,1?3,77

68.493,803.59

95,07A,?3,0.26

9,355,356.09

237,974,625.19

270,932,422.84

79,372,367.74

37,751,201.14

2,W7,"147,73

11,721.25

D Dcmaud Loan Arrangement From: 673,20O000.00 75,00o000.00

Nabil llank Ltd,

Nepal Bank Ltt{.

Nepal Investrnent Bank Ltd.

500,000,000.00

173,200,000.00

75,000,000.00

E Trust Receipt Loan 158,132,231,40

Natril Bank l,kl 168,132,?31.44

Total Interest Bearing Secured Borrorvings (A+B+C+D+E] 4,297147,657.M 3,226,869495,07

DiscioscrlAs:

Non - Current Portion

Current Portion

2AMfi17,439.49

7,813,690,677,95

2350,877,619,24

875,997,875.83

ftTS

MNEP

7s7E/<t

ft ,b,

Shivam Cements Limited.Notes Forming Part of Financial Staternent

For the ?eriod Ending 32nd Ashad 2A75 {16t}:.July.2018)

Provisions & PaYables

Frgs.InIWRNote-10

sN. Particulars Ashad-32,2075 Ashad-31,2074

A Statutory LiabilifY: 3A7,242,M3.09 232:t92,985.97

Excise Payable

Royalty Payable

VAT Payable

TDS Payable

Income Tax PaYable

77,064,662.04

5,?3'1,,163.44

25,748,A06.49

261,758,612.A0

8,902,471.60

5,76t,725.00

76,1.&,642.47

13,833839.00

788,727,266.00

B Liability Against EmPloYeesi 791,,790,028,59 87,386,4148.91

Bonrrs Payable

CIT Payable

Kalyankari Kosh

Payable to Director

Payable to Staff

Provision For GratuitY

Provident Fund PaYable

Salary Payable

Staff Deposit Payable

Wanp.s Pavable

114,279,71.0.00

693,100.00

1,51{.941.61

8,383,066.69

8{7,690.50

26,919,575.59

8,212,712.35

909,231.85

42,000000.00

518,600.00

11.,500.00

1,437A36.79

1,69'1.,909-75

6,464,281.30

1.,175,782.20

24,629,774.28

6,262,678.59

3,254,486.00

C Other Provisions & PaYables 74:8,315,788,19 342,755,723.76

Rece ipt From Customer As Advance

Audit l""ee PaYable

Prov ision For Corporn tc $ocia l ltespeirrsibility

Deposit From TransPorters

Freiglrt Payable

Payable Against Letter of Credit (LC)

Payatrle Against Lanel Purchase

Provision for Expenses

-

?lJL,694,X51,24

344.750,00

',,0,568,566.27

16,591,359.19

2,804,965.04

489,A25,4A4.77

w5,156.53

3,990,235.79

96,839,702.M

246,250.04

10,770,218.02

16,659,000.00

6,544,795.75

199,983,447.88

295,145.56

1'J,,977,229.51.

D r)rnrrieinn Fnr.Frcrronses - Otlrer't",2473A8,59.87 662,334,557,08Total Provisions & PaYables

7,247308,?59.87 662,334,557.A8

Discloserl As;

Non - Current Portion

Current Portion

:( hk)s7--\ YW/4wr'

Shivam Cements Limited.Notes Fcrming Part of Financial Statement

For the Period Ending32nd Ashad,2075 (16th tufy,201S)

Cost of Sales

Prsduction lixpenses

Frgs.IrNPRNote - 11

Notc - 11 A

sN. Particulars Current Year Previous YearAB

cDE

F

G

Raw lvfaterial ConsumptionPacking Material Consumpfion

Cost of Sales of Oil & Fuel

Cost of Sales of CoaI

Cost of Sales of Limesbone I lvlarble

Cost of Sales of Store & Spares

Production Expenses {Note - 11 A)

3,6*1,807,027.93't90,824,016.37

1,626"212-07

85"297,947.87

596,?00.27

3,0{3,8n,505.b

2,647,470,929.60

150,259,105.98

3,062,625.10

433,240.04

329,{90.93

?,475,896,313.57

Tbtal Expense 5,977,012"900.43 4,877,451,6M.07

{+)

(-)

Opening Stock Value of:Cement

ClinkerClosing Stock Y.?lu.e sf;CementClinker

+9,7313?;.91

75.634,263.61

4{,1?2,935.2.*

2"10,9.11,56{,66

43,299,951.51

111,fi.1,735.66

49,731,327.91.

75,63&,?63.61

Total Cost of Sales 6,S12313,992.04 4,997,030,699.72

sN. Particulars Currcnt Ycar Previous Year

I

!t

5

5

7

it

9

10

11

12

13

14

Conl Consurnptinrr

Cousultnncy Charges

Iilectricity Ixpense

Excavntor & Lorrcler Charges

Generator Running Expenses

Other Prr:tlrr Expenses

Mines Expenses

Repair & Mairrterrance (Block "D")Salaq, & Allolgarrces

I-eave Encashnrent

Diesel General & Vehicle Running

Security Expenses

Stores & Spares

Wages

"1,.193,389,n7.0n

1,53e574,80

s58,285,808.25

10,897,94134

758,2A5,452.66

2,8'4'5,%7.78

3,641,99?,36

34,8t4,084.39

133,130,589.93

6,86AA70.Vt

70,127346.76\, 9,u2,576.4g

212,85A,W5.45

51,442,704.75

1,A11,975,546,94

898,82?.52

357,465,297.68

9,682,579,79

221",848146,88

3,45't,993.85

4,3&,269.47

33/724,583,74

72',1.,24,7?5,66

5,753,194.11

50,9?5,447.45

9,760,178.45

187,378,737.87

57A83,n5.62

Total Produclion Expenses 3,M3,87r,505.99 2,W5,896313.52

aAqk/.r."..uu\?'

e( mkleZ\ VW/4We

Shivam Cements Limited.Notes Forming Part of Financial statement

For the Period Ending 32nd Asha4 2075 {16th}uly,2CIt8}

Other Income

Administrative Expenpe

Distribution Expense

Frgc IlrNPR

Note - 12

Note - 13

Note -14

sN. Particulars CurrentYear Previous Year1

7

4

Written Off Figures

Other Incidental IncomeGain on Sale of LandInterest Income

1"350"00

6,$76,250.09

90,E59.37

3,695,951.56

1?,7?8,137.85

660,000.00

Total Other Incomes 6,968,459.46 16,484,089.41

sN. Particulars Current Year Previous Year1

2

*5

6

II

10

1l12

13

14

15

16

t/1B

19

2A

21

Employment Expense

llank Charges

Iiates & Taxes

Rcgistration & Renervable ChargcsAfficc ltent llxpensc*Auclit Fee

Cuest Enterta innrent iSxpepscs

Cucst tleiu.re lixpcrts*sIn$urirrrce fixpcnscs

Intcrne t lixpensesl-egal nnd Ceinsultancy ChargesFostage & Courier exp.Books and Periot{icalsI'rinting & StationeryItepa ir & Maintertancc (l3lock';\")Repair' & Nlaintennnce (lSlock'B')Repair & Maintenance (Bloclt "Cu)'felephone ExperuesTravelliug & Conveyance

CSR Expenses

Other Ad rninistration E:ipense

55,872,151.56

1?,223.570.3{

5,075.258.05

5,395,38.t"36

3,697,843.61

350,000.00.1,.101,55.1."1'l

Tlll,lt 1.1,1

23,475,434.89

1,117,587.97;t,57(),825,?2

197,672,00

6,900.00

938,058.03

1,461,335.76

243,565.52

3,782342.60

7,892,886.40

71,025397.97

73969,622.65

7,U1,997.15

53,930.743.82

1,272,60'1.23

5,79&435.23

:1,682,1'19.65

4,110,375,02

250.000.00

5,77O601.00

574,999.99

25,34-,1'15.64

1,164,067.76

3,337106,08

789,191.,64

35,659.00

\419,496.283,175,398.04

28t,553,26

5,389,926.24

2,688,457,72

20,433,831.57

7,888,834.44

Total Administration Expenses 767,6?3,459.36 147334,572.54

SN. Particulars Cur:ent Year Previous Year

1

2

,t5

o

Adverfuement & Publicity Expenses

Carriage OutrvardSaleslncenHvg 'Sales CommissionSales PromotionLeave EncashmentSalarv & Wases

45,8U,643.77

43,478,844.44

572fi04.0Q

473,670347.24

46,987,8l.8.79

2,286,8?3.41

4376,863.37

5't,740,654.98

4,491,38L.00

1,126"550,00

?A.8,872,978.85

74,950394.43

1.,917,737.37

40 404 233.89

Total Distribution Expense 657,197,785,92 363463,864.52

Shivam Cements Limited.Notes Forming Part of Financial Statement

For the Period Ending 32nd Ashad,2075 (l6thlulR 2018)

Financial Charges

Figs.lnNPRNote - 15

SN, Particulars Current Year Preyious Year

I

2

3

+

5

Interest on Denrand Loan

Interest on Overclraft Loan

Interest oh Term Loan

lnterest on Bridge Gap Loan

Other Interest Charses {On HP Loan)

M,2M,453.1088,482,804.99

254,051,273.67

22,041,578.23

12,994,435.94

26p4s37s.9847,U5497.20

774,585,48?"37

6,472,499.28

Gross Financial Charges 477,414,425.87 255,149,855.83

(-) Financial Charge Capitaliz-ed to Fixed Assets 50,539,386.56 48,977,876.54

Net Financial Chhrges Recognized in PL Statement 366,875,439.31 2A6,777,979,29

ma( ftk-)BOS-<wtiFeD

Shivam Cements Ltd" l

Schedules Forming Part of the Accounts

For the Period Ending 32nd Ashad, 2075 {16th luly,20l8}

Note -16

Significant Accounting Policies & Notes to the Accounts

l, Significant Accounting Policies

1 AccountingConventions

Thc Fi'ancial statements lave been preparetr uncler the Histrociat cost convention on an Accural concept unless otherwise stated antl are

in acconlancs wirh Nepal eccoont;g stanrlarfu (NAs) and others applicable lar,'s prevalent in Nepal. The accounting policies are

consistently applied by the company'

2 Use of estimales:

The preparation of Financial statements in confirmity with generally acceptetl accounting principles requires estimates and assumPfions to

tre made that affect the reported arnounts of assets i ruralti"r and disclosure of contigent liability on the date of the financial statements

anrl ihe reported amounttof revenu'e & exPenses during the repo*ing period-

3 Property, Plani & Equipment and Depreciafion

- Cnpitulisatiot of Assets

., property, plant & Equipment arc stated at cost inclusive of all directl intlirc'ct expenses incurretl irr ceinrnrissioningl puttittg lhem into use'

'l lcss deorcciatiott.

- t tttUnort of DcPreciatlan

'-DcprcciationttlrI'roperty,Plant&Equiplnenthasbccncharg,edrrn1VrittrtnDorr"tt\'a|ucf'\'D\')N.Icthtrtlirspcr|lrcrirtesprescribcv lnconrs"lax Acl 205tt.

4 llevcnrteRecognition

. Revcnuc from lhc sale of goorls is rceogrnizcd in lh* incom* rlllf,r:rrnl rthr:n th* *ig,nificant risks nntl rcn'artls of ownership lnve becn

trirnsfcrrctl to thc l)uycr'

tnvcntorics ( As takcn, V;tlucrt & Ccrtificd by thc lrlanag,*ilfnl ;r prr Inrnmc Itx ll(t ,2058)l

Raw lvhtcrials httvs bcett valuctl ot l{cig,htcrl Aver.rpe eml

ljinisltcrl Corxls ltilvc lrt'en vitltrttl itl Cosl

Rctirtrncnt Ilenefits

Tlrc cor*p.ny lras scheme.s of retircrnurt bencf irg fcr sl.rff* ln ltrrrn nf Frnrident fund & gratui$' contributions to Provident Fund are

clrargctl tn rc'cnue. In this financial yeirr grirtuity has bc*n pr*vbinnrd as pcr the conlpanys norms but a fund for the same is yet to bc

J

0ii)

{t

cstirblishcrl.

7 DebtorslCrcclitor{Advlnces to SupPliers

Dcbhrrs/Crerlitors & Arlvanccs To/Frour are subi(.ct to confinnation'

3 Going Concern

The lhrancial stilteurc'nts are prepared on a going concern basis.

Y Provisions

A provision is rccogniserl rvhen an enterprise has a present obligation as a result of ptt events and it is probable that an outflow of

resiurces u,ill be requiretl to settle tlre obligation in respect of which a reliable estimate can be made'

0T$.Y,i#

B

Shivam Cements Ltd.Schedules Forming Part of the Accounts

For the ?eriod Ending 32nd Ashad. 2075 (16th |uly' 2CI18)

Note - 16

Notes to the Accounts

Litigation & Legal Matters

Companl, has not recogliscd the contigent Liabilities of lncome Tax'as assessed by LTO as the company has applicd for amendment of the

same a t Revenue Tribunal f or Fisca] Y ear 2067 / 68, 2M8 / 69, 2070 / 77 &. 2A7 1 / 2

Proposed DividendThe boar6 of directors has proposerl to declare 13% dividend on paid up capital. The said amount shall be payable a{ter the approval of

annual g,eneral meering. Tliis dividend is declared alter rhe balance sheet date but before the financial statenrents are authoristd for issue,

antl thui not recognised as liability at the balance sheet date as per the Nepal Accounting Standard (NAS) - 5 (12).

Corporate Social ResponsibilitY

Provision for Corporate Social Responsibilihy-, as required under the pror.ision of Industrial Enterprise Act, ?073 Sec: 48 has been

crea ted.

Investment in SubsidiarY

During the year the entily has made

88%. Details of tlrc samc is as stated below:

Rccognition of Dcferrcd Tax Assct$ & LiabilityNe1ln|Accorrrrlin1;Stirntlart|ttttlncolrrcTaxcsas|?{ilir\$l?}.-lncrrnr*Tarr*'isstrci|trvr\cctrunlirratlopll'11.

Dcferrcdlitxistttcirsurcc|[rascr|<tnlhstirxri|tt:5ir||dirrcrr,co11rrizertl<rn|y1othccxtcntth.rt|hcrrrds{crrcrl tax irssr'ts irt'o reilirc(|.

Thurrtnrpatrylrasrcco1illizct|rlcft.rrr.t|tar.tlr*l-rlli.rlri|ilr',rntr-nlirlrctrvcctttheBookPro{itantl'IrrxPrrrfi|.firrlhrlrelrrrrling;nrrira|r:nr|rr|hldrvhiclr is iui under':

llcgrouping of Figrrcs:- Plcvious Yeat's f\;rrres havc bcvn tcgroup*df rr'arnngr:d ;ts and rshcrc ntttsgary.

IVliscellancousl

(i) All amounts ilre in Nepalesc Rupccs unless othen\:ise statd.(ii) All figures :rrt! in the ne.lrest rupet and rotrrrded off as and rthcrc neccssary

(iii) Notc I kr 16 fornrs an iutegral part of financial slnlemcnt ending 32nd Ashad, W75 11

further investnrent in "Shivarn Holding Pvt Ltd.* anrl there.by increasecl ib shareholding to

5

a)

tr)

*fi

Current Year Previous Year Increase

I'articulars Ouantitv Amounl Ouantitv ..\motrnt Qunntity Amount

ilrivanr l"lolelinq Pvt. Ltd. 35,2A0,0ci"] 3,355,703,000 12,760,0100 1,276,rn0,000 22,;140,000 2,089,703,000

tr$$\\a

-if,