SuenASn & Co. Chaner€dAccountants Tel.: 01-4497223. 4482235House No. 199 P.O. Box: 129, KalhmanduTankaPrasadMarg E-mail:casubhash@outlook-comOld Ban6shwor H6ight

TNDE.ENDENT Aurrron 5ii[T8rlt lffihr rroo.rrrrro, o.Shioafi Cer errts Litfiited.

we hare audit€d the acrcmPanying financial statements ofShivam ce,renrs Limited. whrch compnse rhe sratement of Financial posirion

;",J"X:ltji:l#119*r.l.fl?l and the rerated srat€ment .r o-ru ".

,-.o i""-".i "ic(""g* , rq,,,y ,"0 staremenr or cash

Mamgemst of tlle (om?any is responsible lor the prepantion and fair presentation of the* financial Statemenrs in a.cordance withXl:,.j,.".::::,X,:::::::_,;^P::,fTg: ini,uies: aes,gning, r,".pd;;;;:r#ining inrernar contror rerevan*o th€preparation and rair presentarion or ridn iar sr.iemeno ,r," *" i*" r1.. i. i"i"i;ilffi;1.;';liJ[i:I: ;:XT:.ffilT,lX*;and apl'vins appropriate ac.ounrins poiicies; and maring

"..o".,ing *ri.";;,;;;;;;;;;i"," *..,..,-""""""

An di tot's Resb onsibititltou rcsPonsibility is to express an opinion on thes€ fiMncial sraiemenrs based on our audit. we conduded our audt nr accordance wirttNeral standads on Auditi.s. rhose srandar.rs requ,re .r,ar we (oDpry ;;;;*;;,1;;;;^-"." an.r prar and perrorm the audir toobtah .easonable assuran.e abort whether the tm c,ar sratements are rree from ma reria I missta temenr.

An audit nrvolves Frrorning p'ocedures to obtain audit evidence abort rhe amounts ancl .tiscrosures in the financiat staretuenrs. Therro'edures selected depend on our proressionar juds,""n,, i,,.r,aing .r," """"".,,,;;;;r ;,;;;;r ,"",".ial misstatement or the fntancialstate'nents, whether due to rraud d errq. In maring tho". .i"r.

""i"""-"nt", *" ..*,n""Jrr" -"*" -.trol rel€vant to company,sprepararion and fair p.esentation of tlre fimnciar sratemenb in_oder "

a*,g.-",iu p.i"o-es that were appropriate in thecircumstan(es butnotrorthePurposeofe\presstuganopiniononthecompany,si""..t..ii"t.a"*ai,atsoinctuclesevatuaringttrc

'r p rop ria t''ness oI rhe iccoun r n,s poriciFs used dnd the rcdsona breiess or'ac;*,,,g .,, ;;i", ,-" b, r he md rusen,enr. a 5 we, d 5.vdludling thp ovcrdll presentdhon or rhe rrnanr iat stabemenrs

We believe tlDt theaudfteviden.e we obtained issufficie.tan.t appropriare ro providea basis for our op,nron.

Basis fol Disclaifl'et of Opi,tioThe rn\hture or crhrlcred Ar'|ounranrs or \pnar rrcAN) chanSed ure apprkabr- Firdncur Reporhng Frdmewort to,N?pat FnQ .idtRepodt s stdnddr,t' tNrRst hom"N.Dat Atrn tit,ssrd'ia,,Nas,:'",,,i;,,,i",;;,;;;;";:i;,.,"",,r73,74(ie20r6r14.chdnsernfinan.idl rpmbng frimewort required rr.nsrrjon to NIRS asdl roltr luty.20to& p,espnlarron ol dr lFa\tThrep StdlemenB ot Fmdn,iar

l,ffi::"ji;:ff::::i[if.1l"::,ilpreheroive I*o,ne, cash Fr"*, cr",ig"j i" rq,"yii*. i,".* ,"--"

'."*.*rs and re]ated notes.

Restatnrg, PresentuS & Disclosing of Firan.ial Infonnation in o,nptiance with rransirional provision of NFRS is trnder process. TheDranage'nent is ascertainnrg ihe cunuldtive naterial eff(t for irnpLm*",i"..r r."*iii",,"i "rov6ron

of NFR5, 1 consrdering rrrtechnicaiity nr order to duly.oNply with the Financia I neporting rruework so l",Ja.*" 1," rtoN.Die.lainct oIOpinionBe(ause of significance of rhe nutters describe.tsufficien,app;opria,eaudi

",,a."."i...,,"J",l.J"l;..jit"i!H,if::'ffi":iii"l,,il",j;",iiJjlJi,l1l,i;l::,:ffI"::,ilT:f,;ri'st time adopter or NrRs to provide a basis ror an_a uai, opi"ion. e..oiai"gry, *" ;; ;; ;;;."" ".

.p,","" on trre rinanciar statemenrsB hrl, ha\ p not t@n prppa,ed in a(orddn, e wrth NrRr -'

oi the basis of our *amimtion and exptanation;given ro us, we would like to report that:i.

ii.

iii.

we.ave obtanre't a' the nlfor,ration and expramtions, wltch were considered recessary for the purpose ror ouraudit.company has kePt proper tooks ofa(counts as required by law, so far a5 ft appea* rr". "r"-rn"u.., urose books of accounrThe statenent of FinancialPosition, s(.tement ofP.onto. r-o"s, cortr rto* sltement, state entofchanges in Equfty dealt rvirh by thisrepoil is h ag.emenr with rhe books ofaccounr mainrained by the CoDpany.

Dudng our examinarion of rhe boolc of a.count of rhe Co.pu.y, _" f,."" ", .one across the cas,member of there or any reD.""".c",i* * "." "iir." * 3s where the Board of Directors or any

:l:lh::ff::Hy,::l:e:encativeoranyoffnehora*.i"^l;"*pr"y*.ii"c";;;;,;";.LH',";",:T'#::"1::,:'iijj:1caused loss or damage to the Company,.ndv. We have not come across any ftaudutence in rlrc accounts.

Dare: ?o. qCA. S. K. Jhunjhunwata

26\1

Shivam Cements Limited.

Statement of Financial Position

As On 31st Ashad,2076 (16thlutr2019)

NPRSN. Note Ashad-31, 2076 Ashad-32,2075

Notl - Curle t Assets

Property, Plant & Equipment

Deferred Tax Assets

1

z4,258,608,682.99

3,405,703,000.00

2,425,537 _04

4,649,081,224.63

3,365,703,000.00

3,656,900.00Total Non - Current Assets 7,667,137,219.99 8,018,441,124.63

Ctlrent Assets

Cash & Cash Eguivalents

Trade Receivables

Advances, Loan & Deposits

3

4

5

6

172,352,766_29

2,356,120,1A2.71

1,903,564,016.90

734,948,52'L22

94,993,627 _97

2,259,429,780.16

1,218,772,799 3A1,771,763,OO4.17

Total Current Assets 5,107,285,487.12 4,744,959.211.62

Total Assets 12774,422,707.11 12,763,400,336.26B Equity & Liabilities

Eauit! F ndEqu ity Share CapitalShare PremiumRetained Earnings

7

8

4,400,000,000.00

940,222,022.90

3,234,0aL780.17

3,872,000,000.00

23as,424,107.35Total Equity Fund 8,574,303,803.O7 6,257,424,107.35

Not - Curre t Liabilitieslnterest Bearing BorrowingsProvisions & Payables

9

10

't,266,787 ,A41 .61 2,484,011,O39 _19

Total Non - Current Liabilities 1,266,787,841.6't 2,484,011,039.49

Cune t Liabilitieslnterest Bearing BorrowingsTrade Payables

Provisions & Payables

9

10

548,044,9',t8.71

1,349,704,27a39

1,036,181,865.33

'1,813,690,677 .95

960,966,311 .60

1,247 ,308259 .87Total Current Liabilities \933,331,062.43 4,021,965,789.42

Total Equity & Liabilities 12,774,422,707 .11 12,763,400,336.26

SiSnificant Accounting Policies & 16

Our Attached Report of Even DateFor: Subhash & Co

rtered Accountants

KathmanduDate:

'q ' 2a,\"1CA. S. K. Jhunjhunwala

Partner

I!

D-il

<A>):3lul

tr*t)t '--./t?,AccotfY/

?^u,ou

Shivam Cements Limited.Statement of Profit or Loss

For th€ Pe od Ending 31st Ashad, 2076 (16th Jul, 2019)

', NPR

SN. Particulars Note Current Year

1

2

Revenue From OperationCost oI Sales '11

l't,345,1'13,979.98

7 ,270,878,921.86

't0,265,064,452.04

6,8't7,313,992.04

3 Gross Profit (1-2) 4,074,235,058,12 3,447,750,460.00

4

5

Other Income

Expenses:

AdminGtrative Expense

Distribution Expense

Depreciation & AmordzahonFinancial Charges

72

13

t41

15

'13,770,903.52

r92,r86,085.41

849,355,684.22

679,042,487 .94

346,377 ,84?.50

6,968A59.46

167 ,623,459.36

657,191,785.92

675,957,834.93

366,875,039.31

Total Expenses 2,066,962,100.08 7,867 ,64,719.536 Net Profiv{Loss) Before Bonus &Tax (3+4-5) 2,O21,O43,461.56 1,587 ,076,799.93

7 Statutorv Bonus 183,73'r,261.00 144,279,770.00

I NetProfiv(Lossl A{ter Bonus & Be{oreTax (67) 1,837,312,600.56 1442,797,089.93

9 Provision For Corporate Social Responsibility 78,373,126.01 14,427,970.90

10 Net Profiv[oss) Before Tax (8-9) L474,939,474.56 1,428,369,1't9.O3

11 Tax Expense la+b) 304,252,050.00 285,094,029.00

(a) currentrax(b) Deferred Tax

303,420,687 .00

831,363.00

264,158,612.00

20,935,417 .00

12 Net Proriv(Loss) For ihe Period (10-11) 1,514,687 ,424.56 1,143,275,090.03

Other Compr€hensive Income Not FallingasPart of Profit or Loss Statement -

Gain/ Loss on Translation of Foreign Curren yChans€s in Revaluation Res€rve

13 Total Other Comprehensive Income

Total Compr€hensive Income to Equity (12+13) L,574,687 ,424.56 '1,143,275,O90.O3

Significant Accountint Policies &Notes to Financial Statement

Kathn]andu

16

As Per Our Attached Report of Even Date

For: Subhash & CoChartered Accountants

Datei

ao q' 2c \cl

Zs+a}<,7 \. \2-s/l\\ast t\ tuiz\ ZR

S. K. Jhunjhunwala

Shivam Cements Limired.Stat€ment of Cash Flow

For the Period Ending 31st Ashad,2076 (16th July,2019)

, NPRS.N.

t+/-)

(+/-)

CashFlow From Operating Activities:Net Profit After Tax

Non Cash & Non Operatinq ActivitiesDepreciation & AmortizationFinancial Charge on Long Term FinancingCSR Payable Written BackDeferred Tax Expense

Chans€s in Wolki.q CiDitalChanges in lnventoriesChanges in Trade Receivables

Changes in Advances, Loans & DepositsChanges in Current Liabilities

1,s11,687 ,424.56

913,995,702.77

679,042,487 .94

205,4"13,603.56

28,708,248.27

831,363.00

- J,433,601264.1796,990,402.55

684,791,277.52

136,814,482.89

1,088,634,12t;.99Net CashFlow From Operatins A.rivities 995,081,863.16

B CashFlow From Investing Activities:Acquisition ofProperty, PIant & EquipnrentReceipts From Disposal of Fixed AssetsInsurance Receipts For Fixed Assets DamagesIncr€ase in Investment in Shivam Holdins Pvt Ltd

330,04s,281.44

41,475,334.63

40,000,000.00Net CashFlow From Investins ActivitieE 328,569,946.81

C CaEhFlow From Financing Activities:Fresh Issue of Equity Share CapitalShare premiumNet Changes in T€rm FinancingFinancing Charges in Term FinancingDistribution of Dividend

528,000,000.00

940,222,022.90

1,217 ,223,197 .88

205,413,604.03

694,738,000.00Net CaBhFlow From Financing A.tiviti€s 649,152,779.01

D Net Chang€s in Cash & Cash Equivalenrs 17,359,737.34

E Eff€.ts of Changes in FOREXF Opening Cnsh & C.sh Equival€nts 94,993,627.97G Closing Cash &Cash Equivatents 112,352,765.31

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Shivam Cem€nts Limited.Notes Formint Part of Financial Statement

For the Period Endint3lst Ashad,2076 (16th Julr 2019)

Ii8s. r,r NPi{Note - 2

Cash & Cash Equivalents

SN. Parti.ulars Ashad-31,2076 Ashad-32,2075

1

2

Investment in Equity Shares ofShivam Holding Pvt. Ltd.35,200,000 Unit Equity Shares @ NPR 95.6156

S.C.L. Investment Pvt. Ltd.400,000 Unit Equity Shares @ NPR 100.00

3,365,703,000.00

40,000,000.00

3,365,703,000.00

Total Investment 3,405,703,000.00 3,365,703,000.00

Note - 3

SN. Palticularc Ashad-31,2076 Ashad-32,2075Cash in Hand 2A45,155.81 327,204.06

At Hetauda Bran hAt Kathmandu Corporate Office

2,236,786.65

208,369.76

187,166.72

'140,037.34

B Balance Maintain€d At BFI 109,613,770.78 94,242,250.30

Bank ofKathmandu Ltd., HetaudaCentury Commer.ial Bank Ltd.Everest Bank Ltd.Global Bank Ltd.Nabil Bank Dharauti A/CNepal Bangladesh Bank Ltd.Nepal Bank Ltd.Nepal S.B.l.Bank Ltd.NMB BanK Ltd,Rastriya Barlijya Bank Ltd.Sanima Bank Ltd.Siddhartha BanI Ltd., H€taudaNepal Investment Bank Ltd., HetaudaNIC Asia Bank Ltd.

21,400.00

7,390423.94

12,352,289.01'15,506,721.98

47,93't_16'14,'163,998:53

7 ,479,647 .13

17,188,085.05

4,311,885.50

14,502.-69.

302,500.00

15,970.00

30,818,415.79

21,650.00

1,866,498.72

21,929,736.27

23,919,114.29

47,931.16

6,954,908.74

514,220.10't't,837 ,'191 .67

10,380,304.41

10,302.69

228,766.08

5,802,500.00

75,970.00

10,713,156.77C Balance Mainrained At FOREX 293,839.70 424,173.61

Cash ln Hand - Chinese YuanCash ln Hand - USDCash At Bank - NIBL USD Card

163,231.20

78,100.00

52,508.50

294,348.76

77,631.40

52,193.45

Total Cash & Cash Equivalents (A+B+C) 1'12,352,766.29 94,993,627.97

{x\zwia. i e

tFepD

Shivam Cements Limited.Notes ForminS Part of Financial Statement

For the Period Ending 31st Ashad,2076 (16th July,2019)

Trade Receivables

Ii8s. rn NPRNote -4

Note - 5

SN, Ashad-31, 2076 Ashad-32,2075

Raw Materials (Clink€r/Cement): 1,519,965,497.79 1,281,338,080.73

Limestone

lronOreBouxite

MarbleGypsum

1,477 ,672,603.01

28,'147 ,0'17 .00

2,'t85,210.57

642,503.7'l

11,318,163.51

1,234,444,181 .43

16,007 ,536.64

2,778,542.93

227,459_96

27 ,880,359.76B Power & Fuell 425,O20,390.76 318,142,599.54

Coal

Coal Stock at ParwanipurFurnace OitDiesel

235,562,761.59

17'1,357 ,'t87 .46

6,327 ,164.7811,773,276.93

196,596,663.08

110,320,560.16

4,602,699.42

6,622,676.88

C Packins Materials: 15,453,863.22 23,679,0't4.97

Poly Bas 15,453,863.22 23,679,074.97

I) WIP Stock: 3,48'L,789.12 3;109,2'17 .42

Raw Mill Stock 3,481,789.12 3,109 ,217 .42

E Finished Stock: 136,95't,737.54 438,016,603.36

Cement in SiloClinlerClink€r Stock at Parwanipur

56,266,964.59

80,684,768.95

41,122,915.24

240,91't,564.66

152,952,103.45

F Other Sto(k 5,546,904.24 795,144,264.15

Stores & Spar€s 255,546,904.28 195,144,264.15

Total Value of Inventoiy 2,356,420,182.71 2,259,429,780.16

sN. Particulars Ashad-31, 2076 Ashad-32,20751 Debtors (Cement lClinker I Others) 1,903,564,016.90 1,218,772,799.38

Total Trade Receivables 1,903,564,016.90 1,218,772,799.38

J^*8tAcco$)/

!,'.L1

Shivam Cement6 Limited.Notes Forming Pa of Financial Statement

For the Period Ending3lst Ashad,2076 (16th July,2019)

Advances, Loan & Deposits

Equity Share Capital

fi8s. L NPR

Note -6

Note - 7

SN. Particulars Ashad-31, 2076 Ashad-32,2075Against Ta)(ation 272,490,375.44 299,607,644.53

Advance Income Tax 272,490,375 .48 260,26't,138.27

39,346,546.26

a Prepayments/Prepaid 181,981,506.61 539419,785.4O

Prepaid Expense

tnsuran€e - Open PolicyPrepaid Exp€nse - Coal at HaldiaIPO Preliminary Expenses

75,896,204.32

451,552.05

165,633,750.24

30,695,496.61

379,842_04

486,451,609.15

21,892,837.60

C Deposits 9,947 ,892.65 10,810,523.51

Custom DepositOther Deposits

Deposit Against Tax Assessment

2,442,914.7 4

3,036,929.95

4,508,047 .96

3,154,947.60

3,147 ,527 .95

4,508,047 .96

D Letter of Credit 70,9m,750.10 10,367,455.98

E Bank Guarantee/4vlargin 1,044,018.00 2,840,684.00

F LC Margin '1,231,197.O2 4,403,929.80

C Other Advances & Loans 257 ,292,781.36 304,312,940.89

Advance For Expenses

Advance to SuppliersAdvance Against Land Purchase

Advance Against Share PurchaseAdvance Against Staff & Labors

791,006.02

232,218,193.59

1 ,627 ,OOO.O0

74,395,'125.75

8,267,456.00

'1,375,401 .64

294,843,375.32

1,664,000.00

6,430,163.93

Total Advances, Loan & Deposits (A+B+C+D+E+F) 734,948,52't.22 1,171,763,004.11

SN. Ashad-31,2076 Aehad-3z, 2075Authorized Equity Share Capital70,000,000 Equity Share @ NPR 100.00 Each 2000,000,000.00 7,000,000,000.00

B Subscribed/sEued Equity Share Capital50,000,000 Equity Share @ NPR 100.00 Each 5,000,000,000.00 5,000,000,000.00

C Paid Up Equity Share Capital44,000,000 Equity Shares @ NPR 100.00 Each

38,720,000 Equity Shares @,NPR 100.00 Each

4,400,000,000.00

3,872,000,000.00

Equity Share Capital At R€portinq Date 4,400,000,000.00 3,872,000,000.00

#*sx* [x",r.J,uu) *u#

Shivam Cements Limit€d.Notes Forming Part of Financial Statement

For the Period Ending 31st Ashad,2076 (16th July,2019)Ei8s. Ifl NPR

Note - 8Retained Earnings

Interest Bea ng Bonowings

SN. Particulars Ashad-31,2076 Ashad-32, 2075

At Beeinnine of ReDortins Period 2,345,424,107 .35 "t,491,429,394.66

(+)

(+)

G)

Profit/(Loss) For the Period

Provision For CSR Written Back

Dividend Dishibution from Previous Year's Profit

1,514,687 ,424.56

28,708,248.27

- 694,738,000.00

7,143,275,090.03't3,969,622.65

263,250,000.00

B At Closins of ReDortins Period 3,234,081,780.17 2,385,424.107.35

Note - 9

SN. Particulars Ashad-31,2076 I'shad-32, 2075

Hire Purchase Loan Aseement From: 36,932,657 .23 101,072,3'12.79

Bank of Kathmandu Ltd.Nabil Bank Ltd.Nepal lnvestment BanI Ltd.

72,988,207 .36

10,518,182.00

13,426,267.87

17 ,363,958.66

45,108,090.00

38,600,264.13

B LoneTerm Loan Arraneement (Consortia) from: 1,229,855,1a438 2,382,938,726.70

Phase l:Bank of Kathmandu LtdLarmi Bank LtdNabil Bank Lt{tNepal Bank LtdNepal Investment Bank LtdNepal SBI Bank LtdNMB Bank LtdRastriya Banijya Bank LtdSanima Bank LtdSiddhartha Bank LtdPhase II I

Bank ofKathmandu LtdNabil Bank LtdNepal Investment Bank LtdSanima Bank LtdPhase IV :

LaxniBank LtdNabil Bank LtdNepal Irrvestment Bank Ltd.Nepal SBI Bank LtdRastriya Banijya Bank LtdSanima Bank LtdPhase V :Bank ofKathmandu LtdLaxmi Bank LtdlNabit Bank Lrd

lNepal Banl Ltd

lNepal lnvesbnent Bank Ltd

lRastriya Baniiya Banl LtdlSan,Da Bank Ltdlsid.lharrha Banl Ltdlphase vrr :

In...r. o,r",r.-""a,, r ,a

@

ffi

319,993,708.00

28,568,000.00

28,577,704_00

65,701,000.00

3s,704,000.00

64,286,000.00

21,432,000_00

11,432,000.00

28,568,000.00

74,296,000.00

21,432,000.00

54,005,999.38

5,005,999.38

25,009,000.00

11,497,000.00

12,494,000 _O0

1,6,223,838.40 24'1,a92,932.94

16,223,434_40 20,550,195.20

81,577 ,707 .00

74,506,464.74

23,932,941.00

19,575,770 .00

21,749,855.00

805,020,s06.98 L$4,064,178.3451,338,400.00

'10't,448,999 .80

219,641,000.00

64,783,000.00

798,174;t07 .'t859,716,000.00

60,938,000.00

38,981,000.00

100,853,000.00'119,892,999.80

380,714,000.00

112,281,000.00

330,290,178.58

120,844,000.00

105,620,000.00

67,559,000.00

408,610,839.00 428,981,908.00

28,661,458.00 29793029

Shivam Cem€nts Limited,Nptes Formint Part of Financial Statement

For the Period Endint3lst Ashad,2076 (16th July,2019)T,8s. I,, NPR

Laxmi Bank Ltd.Nabil Bank Ltd.

Nepal Bank Ltd.

Nepal Inveshrent Bank Ltd.

Nepal SBI Bank Ltd.Rastriya Banijya Bank Ltd.Sanima Banl( Ltd.

Siddhartha Bank Ltd.

33,472,104.00

146,678,577.00

19,502,717 .00

106,726,927.00

z3,744,236.00

23,675,397.00

16,746,435.00

34,789,967.00

152,453,571.00

20,270,574.00

106,726,927.00

8,485,356.00

35,072,807 .00

24,607 ,534.00

16,782,149.00

C Overdraf t Anang€ment/Facility From: 345,317,820.52 972,358,386.95

Bank ofKathmandu Ltd.Laxmi Bank Ltd.Nabil Bank Ltd. (Hetauda Branch)

Nabil Bank Ltd. (Kathmandu Branch)

Nepal Bank Ltd.Nepal Inv€stment Bank Ltd.Nepal SBI Bank Ltd.Rastriya Banijya Bank Ltd.Sanima Bank Ltd.Siddhartha Banl Ltd.

9,302,695 .14

218,504,725.95

35,793,097 .99

7L,985,831 .07

6,0s0,038.50

3,681,428.87

51,575,814.01

140,066,953.r8

13,212,1,79.55

146,733,253_61

78,215,139 .00

73,650,436_46

't ,818,123.77

135,213,884.35

27,759 429.679,'r13,773.35

D Demand Loan Arranqement Fromi 3,735,000.00 673,200,000,00

Nepal BanI Ltd.Nepal lnvestment Bank Ltd. 3,735,000.00

500,000,000.00

173,200,000.00

E Trust Re.eipt Loan 198,992,098.19 168;132,231.00

NabilBank Ltd 198,992,098.'t9 L68,132,231 .00

Total Inteiest Bearins S€cured Borrowinss (A+B+C+D+E) 1,814,832,760.32 4,297 ,701,657 .44

Disclosetl As:

Non- Current PortionCurrent Portion

't,266,787 ,817 .61

548,044,978 .71

2,484,017,039.49

1,813,690,6't7 .95

Provisions & Payables Noie - 10

sN. Ashad-37, 2O76 Ashad-32,2075

Statutory Liabilitv: 412388,590.95 3O7,202"443.O9

Excise Payable

Royalty Payable

VAT Payable

TDS Payable

Income Tax Payable -1.-fi;

'14,502,628.80

7 ,129,665.00

46,904,994.83

45,430,615 .32

303,420,687 .00

12,064,662.00

5,231,763.00

25,748.006.09

264,1.58,612.00

u Liability Asainst Employees: /-Ay-:\b\ 336,591,775.49 191,790,028.59

Bonus Payable

CIT Payable

National Welfare Fund

,l

\ek9);s/

183,737,267.00

837,685.00

29,166,461.23

68,055,076.19

1,191,182.44

14,634,613.39

1,311,651.39

28,551,205.87

9,717,957.13

627.85

144,279,710.00

693,100.00

1 ,514,941 .61

8,383,066.69

847,690.50

26,9't9,575_59

8,242,7'12.35

909,231.85

Staff W€rare Fund Payable

Payable to StaffProvision For Gratuity & SSF

Provident Fund Payable

Salary Payable

Staff Deposit Payable

waSes Payable I

\ (3,-o 1"9filqa\ rN/q

{rve-en*

Shivam Cements Limited.Notes Forming Part of financial Statement

For the Period Ending 31st Ashad,2076 (16th July, 2019)

I, NPR

C Other ProviEions & Payables 282,201,558.89 748,315,784.79

Receipt From Customer as AdvanceAudit Fee Payable

Provision For Corporate So€ial ResponsibilityDeposit From Transporters

Freight Payable

Payable Against Letter of Credit (LC)

Payable ASainst Land Purchase

Provision for Expenses

270,247 ,860.62344,750.00

233,444.01

284,845.33

7 ,932,208 .99

262,156.53

8,a96,293.47

224,694,351.24

344,750.00

10,568,566.27

16,591,359.79

2,804,965.00

489,026,404.17

295,156.53

3,990,235.79

D Provision For Expenses - OtherTotal Provisions & Payables 1,036,181,865.33 1,247 ,308,259.87

Discloseil As:

Non- Current PortionCurrentPortion 1,036,181,865.33 7,247 ,308,259 .87

o/

Shivam Cements Limited.Notes formint Part of Financial Statement

For the P€riod Endint 31st Ashad,2076 (16th luly,2019)Ii8s. Ifl NPR

Note - 11Cost of Sal€s

Produ.tion Expenses

SN. Particulars

B

C

DE

rc

Raw Material ConsumptionPacking Material ConsumphonCost oI Sales of Oil & Fuel

Cost of Sales of CoalCost ofsales of Limestone MarbleCost of Sales of Store & Spaies

Production Expenses (Note - 11 A)

3,O03,747 ,989 _12

236,522,819.50

3,625,347 .75

197 ,792,631.29

97,0't4_25

3,680,940,357.29

3,654,801,027 .93

190,820,046.37

1,626,212.01

85,297 ,907 .87

596,200.27

3,0$,8n,505.99Total Expense 7 ,722,766,159,50 6,977,01L900.43

c)

(+) Opening Sto.k Value of:

Cenlent

ClnrkerClosine Sto.k Value of:Cemcnt

Chrker

44;122,935.24

240,94"1,564.66

56,266,964.59

80,684,768.95

49,n1327 .9'l75,634,263.67

44,"t22,935.24

240,941,564.66

Total Cost of Sales 7 ,270,878,92t .86 6,8a7 313,992.04

Note - 11 A

sN. Particulars Curr€nt Year

1

2

3

4

5

6

7

8

9

10

11

12

13

14

Coal ConsumptionConsultancy Charges

Electricity Expense

Excavator & Loader Charges

Generator Running Erpenses

Other Prodn Expenses

Mines Expens€s

Repair & Maintenance (Block "D")Salary & AllowancesLeave Encashment

Diesel General & Vehicle RunningSecurity Expenses

Stores & Spares

1,897 ,618,505.43

2,504,957 .37

1.,L26,055,199.89

32,097 ,355.0522,568,264.55

2603,324.958,909,940.60

27 ,758,932.93

158,358,859.59

8,831,485.11

76,149,976.89

14,982,408.28

234,548,483.63

68,552,663.O2

1,493,389,777.03

1,532,574.80

858,285,808.25-t0,897,941.30

158,205,052.66

2,845,252.78

3,641,992.36

30,814,084.39

133,130,589.93

6,860,470.24

70,127 ,306.16

9,847,576.49

212,850,975.45

5't,442,104.15

Total Production Expenses 3,680,940,357 .29 3,043,471,505.99

l"=

Shivam Cements Limited.Notes Formint Pa of Financial Statement

For the Period Ending3lst Ashad,2076 (16th ruly,2019)r'ss. L NPR

Note - 12Other In.ome

Administative Expense

Distribution Expense

sN. Particulars Current Year

1

2

3

4

Written Off Figures

Other Incidental Income

Int€r€st Income

Exchange gain /Loss

1,599,363.70

10,369,082.30

2,400,027 .57

597,569.99

1,350.00

6,876,250.09

90,859.37

Total Other lncomes 13,770,903.52 6,968,459.46

SN. Particulars Current Year

1

2

3

4

5

6

7

8

9

10

11

12

13't4

15

16

77

18

79

20

2t

Employment Expense

Bank Charges

Rates & Taxes

ReSishation & Renewable Charges

Office Rent Expenses

AuditFe€Guest Entertainment Expenses

Cuest House Expenses

In6urance Expenses

lnternet Expenses

Legal and Consultancy Charges

Postage & Courier exp.

Books and Periodicals

PrintinS & Stationery

Repair & Maintenance (Block "A')Repa'r & Maintenance (Bloct "B')Repair & Maintenan.e (Blocl "C")Telephone E'penses

Travelling & Conv€yance

lcsn e"p"n,""lOther Administration Erpen5e

65,192,509 .79

7,006,108.05

3,451,151.58

5,048,246.00

5,237 ,909.72350,000.00

5,235,713.98

845,694.47

73,376,732.09

L24L534.674,510,329.26

228,676.40

14,600.00

1,238,576.29

2,144,184.89

408,200.00

5,808,932.81

2,977 ,594.88

20,670,664.96

28,708,248.27

8,457,'137 .30

55,872,151.56

12,223,570.34

5,075,258.05

5,295,384.36

3,697,U3.61

350,000.00

4,407,554.14

7'r8,111.14

22,475,434.89

1,"137,587 .97

4,516,825.22

797,672.00

6,900.00

938,058.03

1,46't,335.76

243,565.52

3,782,302.60

2,892,886.40

21,025,397.97

13,969,622.65

7,34L,997 .15

Total Administration E,(p€nses 192,186,085.41 167 ,623,459.36

Note - 13

Note - 14

SN. Parti.ulars1

2

3

4

5

6

7

Advertisement & Publicity Expenses

Carriage OutwardSales Incentive

SalesCommission -rr*-;:*-. I N\l\ ! '/, -\\

f

89,134,801.01

44,'167,694.00

2,818,940.00

602,820,059.s7

54,684,074.74

45,884,603.77

43,478,800.00

572,500.00

473,610,347 .24

46,981,848.19

2,286,823.41

44,376,863.3'lLeave Encashment

Salary & Wases

/r+l

,3\/4

:.\\

^\!t,943,828.37

V86,2s6.s3rotal N*&ib'fionI Tfnse

rn

"a$dSlilss,684.22657 ,191,?85.92

(xff4wc

\

Shiva Cements Limited.NoteB Forming Part of Financial Statement

For the Period Ending3lst Ashad,2076 (16th Julr 2019)

Financiat Charges

L8s. L NPRNot€ - 15

sN. Pati.ulars CurrentYear1

2

3

4

5

Interest on Demand lnanInterest on Overdraft LoafiInterest on Term LoanInterest on Bridge Gap Loan

Other tnterest Charqes (On HP Loan)

43,343,'t12.04

100,640,602.89

205,413,603.56

10,076,545.58

44,244,453.'t0

88,082,804.99

250,051,213.61

2?,041,518.23

12,994,435.94

Cross Finan.ial Charges 359,473,864.07 417 ,414,425.87

c) Finan€ial Chaise Capitalized to Fix€d Assets 13,096,02't .57 50,539,386.56

Net Financial Charges Recognized in PL Stat€ment 346,377 ,442.50 366,875,039.31

1

5

i)ii)

5

i,

Note - 16

Siqnifi(ant A(countinc Poli.ie6 & Notes to the A((ornts

Signif icdt A..outing Policies

A.courtinS Coneention6

The Finmciat Statements have been prepared under the Hishmial Cost Convention o. atr Accural Concept unless otherwise stated and are

in accordan.e with Nepal A..ounting Standards (NAS) and others applicable laws prevalent in Nepal. The accounthg policies are

consistently applied by the company.

The preparatior of Fhatrcial Statementi in confimiry withgenerally accepted a.countnrg prnr.iplcs rcquires cslinrates and a$sumpttuns tobe made that affet the reported amounts of as*ts & liabilities and di$losure oI contigent liability on the date of th. Iinancial stalements

and the reported amounts of revenue & expenses during the reporting period.

Pioperty, PI t & Equipment and Depre.iation- Capitalisatiot ol Assets

Properly, Plant & E4uipnent are stated at .ost in.lusive of all dirdt/ indn{t expen*s incurred in cormisstuning/ putting them into u*,

- M.tho.l of Detrc.idtio

Depreciation on Property, Plant & Equlpment has b€m charged on Written Down Value (WD\4 Method as pe. the rates pres.ribed in the

In.ome Tax A.t 2058-

Revenue Re.ognition

Revenue from the sale oI goods is re(ognized in the in ome statement when the significantisk and rewads oI ownership have been

haNferred to lhe buyer.

Inventories (As take$ Valued & Cenified by the Manatement as per Incode tax A.t,20s8):Raw Materials havebenvalued atWeighled Average Cost

Finished Goods have b@n valu.d at Cost

The Company h6 schemB of retirement benefits for slafh in forn of Provident Fund, Cratuity & SGial S.curity Fund. Coniributions toProvident lund are.h.rged to revenue. In this finaNial year Graruity & SSF has been provisbned as per the .ompanys norms bul a Iutrdfn the saore is yet to be established..

Nepal Sto.k Erchange Lnniled listed 4 Crores 40 t alh unit IPO shaie of Shivam Cement Limited under Share Listing agreement so

conducted as on 05 L 12 | 2075. The entity had i$ued 52 Lakh 80 Thousnd share units to general public & localities on premium of Rs.200 &Rs.100 Each Per Share there by accumulating Share Pienium amounting to Rs.94 Crores INet of Share Issumce Expen*sl which has been

duly stated in the Financial Statemmt 6 per the appli.able leg.l provisions of the t2nd.

Shivah cements Ltd.

S(hedd€s rorming Pait of the Ac.ountsFor the Period Endirg 31st Asha4 2g16 (16th luly, 2019)

SubstantialSh eholdersFollowing are the shareholders ofShivam Cenrent Ltd. having shareholding erceeding s% of the total

Surendra Kumar Goel

Binod Kuma. Bhimaria

'RohitGupta

paid up opital as on 3lstAshad,

Sushil Gu

464,6i10,000

425,920,000

300,080,000

261,360,000

212000,000

232,320,000

"Noter Shareholding Repr@nled by Dir(tors.

Shivm Cements Ltd.Schedules lorming Pan of the Accounts

Ior the Peliod Ending 316t Asha4 2076 (16th Jul, 2019)

Rel.ted Party Dis.to6ues

The foltowing related parbes has ben identified alonS witl t. sactions so conducte.t during FY: m7s 76 in compliance with the

requnements oI NAS 24.

Modern Infrstructure Pvt, Ltd.

Aflind Emporium Pvt. Ltd.

Saptakoshi C€ment Pvl. Ltd.

Star Lime Industnes Pvt. Ltd.

Co$truction Sohtion Pvt. Lld.

Premier Wires Pvt. Ltd.

Pdhupad Synpa.k Ind. Pvi Ltd.

Te.hno lava lewellery r\t. Ltd.

341,409,076.74

297,773,449.65't,075,u5.w

4763130.00L7azsm.737.4n,162.571,fi9,264.b1,ZW6Z\.55

10

11

B

1

Debtory'CrediiorvAdvances to SuppliesDebto6/Credito6 & Advances Tolrrom are sub,e.t to.onfimtion

The Iin cial statements ar€ prepared on a going concem basis.

A provision is r{ognird when ar enterprise has a pre{nt obligation as a result of pnst ev.rts and il is probablt thai an outflow ot

resources willbe 'equned

to settle theobligation in resPect of which a reliable estimnte can be marle.

Notes to the A..ounts

Litigation & Letal Matteisln ome Tax & Assessment Related Matters

Company has nor recogniie.l rhe contigent Liabilihes of Incone Tax as assessed by LTO as the .ompany has apPljed lor amendment oI the

same at Revenue Tribunal fot Fhcal\eat 2067 / 68,2068/ 69,2070/n &m71/72.

Eledricity & It6 Related Matters

Company hs not dcertained the fimncial impacr of Interesr & Penatty so arisinS against a Writ Peftion which w6 caceled by Hono.able

High Courr paran for Elshicity Overbi]lhg issues with Nepal Electricity Authority but is categorising the same a contingent liability as on

thJreporting period. But .t lhe same time the entity is also sear.hing for altemative legal cou.se of action and has als identified &

accountedlheapplicablerelevmtexpensesforthesme,imPactofwhi.hisdulyrefle.tedintheprofitabiltyofFY:2075176'

The bcrd ofdn{b6 has propose.l to declare15.7895% cashdividend on paid up capital. Thesaid amountshall be payable after the

approval of mnual general m@ting. This dividend is declared afte. the balance sheet date but bcfore the financial statements are

auihori*d for isNe, ard thus not reognised as tiability atthc balance sheet datc as pe, thc NepalAccounting Standard (NAS) _ 5 (12).

Corporate Social Responsibilityprovision for Corporate Social Responsibility, as required underthe provision of hdustrial EnterPrise Act,2073 Se.:48 has been

Investment in Subsi

Quantity Quantity Quantity

Shivam Holdins Pvt. Ltd. 35,200,000 3,355,7G,0m 35,200,000 3,365,703,OW

S.C.L. Inveshnent PvL Ltd. 400,0m 4O000,000 400,000 40,000,000

.q\v ,NtYoa

shivam cements Ltd.S.hedules lorminS Part of the Accounts

ror th€ Period Ending }Ist Ashad, 2075 (16th luly, 2019)

5

a)

R.(ognition of Defeied Tu Assels & LiabilityNepal AccountinS Standard on lncome Taxes as 12 (NAS 12)-" Income Taxe$' issued by

Deferied tar is medured based on rhe td rates md the laws eMcted or substantively enacted at the bat,n.e shPr date. Deferred tax a$ets

are recognized oily ro ihe extent that there is ieasomble certaintly that sufficimt tuture taxable income will be available aSainst whi.hsuch defered tar asets are realized.

The .ompany has rsognized defered tax dsets/liability amounting to Rs. 2821537.00 whi.h resulted fron the timing diflerences

ietween the Book Profit and Tax Profit, for the reporting period ended Ashad 31, 2076 0uly 16, 2019) in In.ome Statemenis.

Regrouping of liSures:- Previous Yeafs figures have been regrouped/rea..an8ed as dd wl'ere necessary.

(i) All mountsare in Nepalese Rupees unless otherwie stated.(ii)All figures are in the nearest rupeeand rounded olf as and where n€essary(iii) Note 1 to 16 Iorms an nrregralpart of financial statement ending 31st Ashad,2076 (1€,dr luly,2019).

Note _ 16

Ac.ounting Standard B@rd Nepal, has been

b)

t(r

V.t'

7t!/,9