1.  Basis of preparation
 
 (i) The financial statements have been prepared to comply in all
 material respects with the Accounting Standards notified by Companies
 (Accounting Standards) Rules, 2006 (as amended) and the relevant
 provisions of the Companies Act, 1956.
 
 (ii) The Financial statements have been prepared under the historical
 cost convention on an accrual basis, except where impairment is made.
 
 (iii) The Accounting policies have been consistently applied by the
 Company and are consistent with those used in the previous year.
 
 2.  Use of estimates
 
 The preparation of financial statements in conformity with generally
 accepted accounting principles requires management to make estimates
 and assumptions that affect the reported amounts of assets and
 liabilities and disclosure of contingent liabilities at the date of the
 financial statements and the results of operations during the reporting
 period. Although these estimates are based upon managements best
 knowledge of current events and actions, actual results could differ
 from these estimates.
 
 3.  Segment Reporting
 
 The Company has only one business segment ‘Cement as its primary
 segment and hence disclosure of segment-wise information is not
 required under Accounting Standard 17 - ‘Segment Reporting notified
 pursuant to the Companies (Accounting Standards) Rules, 2006 (as
 amended).
 
 The Company has only one Geographical Segment. The Company caters
 mainly to the needs of the domestic market. The export turnover is not
 significant in the context of total turnover.
 
 4.  Related Parties Disclosures
 
 (A) Names of the Related parties where control exists: Nature of
 Relationship
 
 (i) Bulk Cement Corporation (India) Limited Subsidiary Company (ii) ACC
 Mineral Resources Limited
 
 (Formerly The Cement Marketing Company of (India) Limited) Subsidiary
 Company
 
 (iii) Lucky Minmat Limited        Subsidiary Company
 
 (iv) ACC Concrete Limited Subsidiary Company
 
 (v) National Limestone Company Private Limited Subsidiary Company
 w.e.f. April 20, 2009
 
 (vi) Encore Cement and Additives Private Limited Subsidiary Company
 w.e.f. January 28, 2010
 
 (vii) MP AMRL (Semaria) Coal Company Limited Joint Venture of ACC
 Mineral Resources Limited
 
 (viii) MP AMRL (Bicharpur) Coal Company Limited Joint Venture of ACC
 Mineral Resources Limited
 
 (ix) MP AMRL (Marki Barka) Coal Company Limited Joint Venture of ACC
 Mineral Resources Limited
 
 (x) MP AMRL (Morga) Coal Company Limited Joint Venture of ACC Mineral
 Resources Limited
 
 (B) Others:
 
 (a) Names of other Related parties Nature of Relationship
 
 (i) Alcon Cement Company Private Limited Associate Company
 
 (ii) Asian Concretes and Cements Private Limited Associate Company
 w.e.f. April 01, 2010
 
 (iii) Ambuja Cement India Private Limited Promoter Group Company
 
 (iv) Ambuja Cements Limited Promoter Group Company
 
 (v) Holderind Investments Limited Promoter Group Company
 
 (vi) Holcim (India) Private Limited Promoter Group Company
 
 (vii) Holcim Services (Asia) Limited Promoter Group Company
 
 (viii) Holcim Group Support Limited Promoter Group Company
 
 (ix) Holcim (Singapore) Pte Limited Promoter Group Company
 
 (x) Holcim Trading FZCO Promoter Group Company
 
 (xi) Holcim (Lanka) Limited Promoter Group Company
 
 (xii) P T Holcim Indonesia Tbk Promoter Group Company
 
 (xiii) Holcim Services (South Asia) Limited Promoter Group Company
 
 (xiv) Siam City Cement Public Company Limited Promoter Group Company
 
 (xv) Holcim (Bangladesh) Limited Promoter Group Company
 
 (xvi) Holcim (Canada) INC Promoter Group Company
 
 (xvii) Holcim (Vietnam) Limited Promoter Group Company
 
 (xviii) Holcim Environment Services SA Promoter Group Company
 
 (xix) Holcim Foundation Promoter Group Entity
 
 (b) Key Management Personnel:
 
 Name of the Related Party Nature of Relationship
 
 (i) Mr. Kuldip K. Kaura (w.e.f. 05.08.10) CEO & Managing Director
 
 (ii) Mr. Sumit Banerjee (up to 13.08.10) Managing Director
 
 5.  Acquisitions / Subscriptions
 
 a) During the year the Company has acquired 100% stake in Encore Cement
 and Additives Private Limited for a total consideration of Rs. 11.78
 Crore, a Company engaged in manufacturing and supply of ground slag.
 
 b) During the year the Company has acquired 45% stake in Asian
 Concretes and Cements Private Limited for a total consideration of Rs.
 36.81 Crore, a Company engaged in manufacturing of various grades of
 cement.
 
 c) During the previous year the Company subscribed to 100,000,000 1%
 Cumulative Redeemable Preference Share for a total consideration of Rs.
 100 Crore in its wholly owned subsidiary ACC Concrete Limited.
 
 d) During the previous year the Company subscribed to 4,90,000 equity
 shares for a total consideration of Rs. 4.90 Crore in its wholly owned
 subsidiary ACC Mineral Resources Limited.
 
 e) During the previous year the Company has acquired 100% stake in
 National Limestone Company Pvt. Limited for a total consideration of Rs.
 16.24 Crore, a Company engaged in mining of limestone.
 
 f) During the previous year the Ministry of Coal allocated a coal block
 in the state of West Bengal to a consortium in which the Company is a
 member. The Company plans to carry out mining activities through a
 joint venture Company. During the year the Company has been allotted
 47,507 shares in Moira Madhujore Coal Ltd. for a total consideration of
 Rs. 0.35 Crore.
 
 g) During the previous year ACC Mineral Resources Ltd., a wholly owned
 subsidiary of ACC Limited has entered into four Joint Venture
 agreements with Madhya Pradesh State Mining Corporation Limited for
 mining of Coal in the state of Madhya Pradesh and Chattisgarh.
 
 6. Employee Benefits:
 
 a) Defined Contribution Plans – Amount recognised and included in
 Schedule 16 Contributions / Provisions to and for Provident and Other
 Funds of Profit and Loss Account Rs. 7.28 Crore (Previous Year Rs. 7.94
 Crore).
 
 b) Defined Benefit Plans – As per actuarial valuation on December 31,
 2010
 
 The Company has a defined benefit gratuity and post employment medical
 benefit plans as given below:
 
 i.  Every employee who has completed minimum five years of service is
 entitled to gratuity at 15 days salary for each completed year of
 services. The scheme is funded with insurance companies in the form of
 a qualifying insurance policy.  ii.  Benefits under Post Employment
 medical Benefit plans are payable for actual domiciliary treatment /
 hospitalization for employees and their specified relatives.
 
 c) The Guidance issued by the Accounting Standard Board (ASB) on
 implementing AS-15, Employee Benefits (revised 2005) states that
 provident funds set up by employers, which requires interest shortfall
 to be met by the employer, needs to be treated as defined benefit plan.
 The Fund does not have any existing deficit or Interest shortfall. In
 regard to any future obligation arising due to interest shortfall (i.e.
 Government interest to be paid on provident fund scheme exceeds rate of
 interest earned on investment), pending the issuance of the Guidance
 Note from the Actuarial Society of India, the Companys actuary has
 expressed his inability to reliably measure the same.
 
 d) Basis used to determine expected rate of return on assets:
 
 The expected return on plan assets is based on market expectation, at
 the beginning of the period, for returns over the entire life of the
 related obligation. The Gratuity Scheme is invested in Life Insurance
 Corporation (LIC) of Indias Group Gratuity-cum-Life Assurance cash
 accumulation policy and HDFC Standard Lifes Group Unit Linked Plan -
 For Defined Benefit Scheme.
 
 e) The estimates of future salary increases, considered in actuarial
 valuation, take account of inflation, seniority, promotion and other
 relevant factors, such as supply and demand in the employment market.
 
 f) The Company expects to contribute Rs. Nil to Gratuity fund in the year
 2011.
 
 g) Post employment defined benefit plan expenses are included under
 personnel expenses in Profit and Loss Account.
 
 h) During the previous year, pursuant to amendments in Post Employment
 Medical Benefits scheme the Company had recognised curtailment gain of
 Rs. 2.18 Crore.
 
 7. A) Contingent Liabilities Not Provided For –
 
 a) Guarantee given on behalf of subsidiary companies to the extent of Rs.
 0.51 Crore (Previous Year – Rs. 0.15 Crore).
 
 b) Indemnity, Guarantee/s given to Banks / Financial Institutions,
 Government Bodies and others Rs. 148.40 Crore (Previous Year – Rs. 138.85
 Crore).
 
 c) Sales Tax, Excise Duties & Other Dues Rs. 59.41 Crore (Previous Year –
 Rs. 46.96 Crore).
 
 In respect of item (c) future cash outflows in respect of contingent
 liabilities are determinable only on receipt of judgments pending at
 various forums / authorities.
 
 d) The Company had filed petitions against the orders / notices of
 various authorities demanding Rs. 155.21 Crore (Previous Year – Rs. 132.96
 Crore) towards payment of additional Royalty on Limestone based on the
 ratio of 1.6 tonnes of Limestone to 1 tonne of Cement produced at its
 factories in Madhya Pradesh and Chattisgarh and on cement produced vis
 a vis consumption of limestone at its factory in Tamil Nadu. The
 Company holds the view that the payment of royalty on limestone is
 correctly made based on the actual quantity of limestone extracted from
 the mining area.
 
 The Company has also received a demand resulting in a liability of Rs.
 45.37 Crore (Previous Year– Rs. 40.18 Crore) towards payment of
 additional Royalty on Limestone based on the ratio of 1.4 tonnes of
 Limestone to 1 tonne of Clinker for one of its plant in the state of
 Karnataka. The Company has conducted studies to establish the quantity
 of Limestone consumed in the manufacture of Clinker at this plant and
 royalty payments towards Limestone are in accordance with such
 consumption ratios.
 
 In view of these demands being legally unjustifiable, the Company does
 not expect any liability in these matters.
 
 B) a) The Company was entitled to receive Transport Subsidy against
 actual expenditure on freight incurred for a period of five years in
 respect of its new 1 million MTPA plant at Gagal (Gagal II), which went
 into commercial production on September 15, 1994. Accordingly, the
 Company accrued the subsidy claim (including subsidy on clinker)
 aggregating Rs. 80.65 Crore (Previous Year – Rs. 80.65 Crore) up to
 September 1999.
 
 In this respect, the Company had received part disbursement and the
 balance of Rs. 46.35 Crore was withheld on the ground that Gagal II is
 not a new unit but is an expansion of an existing unit, and thereby not
 eligible for subsidy under Transport Subsidy Scheme, 1971. Further, the
 Company had received a demand notice from the Government of Himachal
 Pradesh asking for refund of the subsidy already remitted.
 
 During the year, the Supreme Court confirmed the eligibility of Gagal
 II to receive transport subsidy as claimed, by rejecting the appeal of
 the Union of India against the orders of the High Court of Himachal
 Pradesh (single bench in Aug 2003 and Division Bench in April 2008)
 which had confirmed that Gagal II was a new unit and consequently
 eligible for Transport Subsidy.
 
 The Government has since accepted the verdict and has disbursed Rs. 45.19
 Crore (leaving out an amount of Rs. 1.15 Crore relating to transport
 subsidy on Clinker, which the Company intends to pursue).
 
 b) The Company had availed Sales-tax incentives in respect of Gagal II
 under the HP State Industrial Policy, 1991. The Company accrued
 Sales-tax incentives aggregating Rs. 56 Crore (Previous Year – Rs. 56
 Crore). However, the Sales tax authorities had introduced certain
 restrictive conditions after the commissioning of the unit, stipulating
 that the incentive is admissible only for the incremental amount over
 the base revenue and production. Company contends that Gagal II being a
 new unit, such restrictive conditions cannot be imposed on it as per
 the Industrial Policy. The Company is in appeal before the Himachal
 Pradesh High Court against the decision of the HP Tax Tribunal on this
 matter. Consequent to the decision during the year of the Supreme Court
 in the Transport Subsidy case and acceptance by the Central Government
 in that case that Gagal II is a new unit, management believes there is
 a material shift in the merits in favour of the Company in the
 Sales-Tax incentives case. Therefore, during the year, the Company has
 written back Rs. 56 Crore which was provided as a measure of abundant
 caution in earlier years. The Company had also provided an amount of Rs.
 7 Crore towards interest, which is also written back during the year.
 
 c) Pursuant to incentives available under a State Industrial Policy in
 respect of one of its cement plants, the Company had preferred claims
 and till Dec 2008 accrued Rs. 15 Crore on account of Capital Investment
 Subsidy and Rs. 29.44 Crore as Sales Tax / VAT subsidy receivable from
 the State Government. However, since the payments / reimbursements were
 not forthcoming, management considered it prudent to create a provision
 against the amounts receivable, and in an earlier year, provided for an
 amount of Rs. 29.44 Crore by charge to Profit and Loss Account and
 adjusted the Capital Reserve Account to the extent of the Capital
 Investment Subsidy. No further accruals of the subsidy have been made
 for the subsequent period though the Company continues to lodge its
 claims with the authorities. During the year, the Companys writ before
 the Jharkhand High Court for recovery of the eligible amounts from the
 Government Authorities has been admitted.
 
 8.  Estimated amount of contracts remaining to be executed on capital
 account and not provided for (net of advances) Rs. 259.05 Crore (Previous
 Year – Rs. 660.45 Crore).
 
 9.  There are no Micro, Small and Medium Enterprises, as defined in
 the Micro, Small, Medium Enterprises Development Act, 2006, to whom the
 Company owes dues.
 
 This information has been determined to the extent such parties have
 been identified on the basis of information available with the Company.
 This has been relied upon by the auditors.
 
 10.  Sales include Sales Tax incentive of Rs. 7.67 Crore (Previous Year -
 Rs. 60.51 Crore)
 
 11.  Deferred Payment Liability included in Unsecured Loans – Schedule
 4 comprises of Rs. 8.12 Crore (Previous Year - Rs. 9.74 Crore) payable to
 the Industrial Development Corporation of Orissa Limited (IDCOL) in
 eight equal annual instalments without interest or penalty. The fourth
 instalment was due for payment on December 22, 2010.
 
 12.  a) During the year, the Company changed its basis of identifying
 obsolescence of spare parts. Obsolescence of spare parts is now
 determined with respect to the actual usage pattern. Accordingly, an
 amount of Rs. 71.16 Crore is recognized under repairs to machinery in
 schedule 16 as a write down for the year (including Rs. 47.36 Crore
 pertaining to the period until December 31, 2009).  Had this change in
 basis not been made, the profit before tax for the year and the closing
 inventory of stores and spare parts as at the year end, would have been
 higher by Rs. 71.16 Crore.
 
 b) The Board of Directors have recommended payment of final dividend of
 Rs. 20.50 per share which is inclusive of an one-time special Platinum
 Jubilee dividend of Rs. 7.50 per share. Total dividend together with the
 interim dividend paid earlier aggregates to Rs. 30.50 per equity share.
 
 13 Previous years figures have been regrouped/restated wherever
 necessary to make them comparable with current years figures.