1.  (A) Basis of preparation of financial statements :
 
 i.  The financial statements have been prepared in compliance with all
 material aspects with the Accounting Standards notified by Companies
 (Accounting Standards) Rules, 2006 (as amended) and the relevant
 provisions of the Companies Act, 1956.
 
 ii.  Financial statements are based on historical cost and are prepared
 on accrual basis,
 
 iii. Accounting policies have been consistently applied by the Company
 and are consistent with those used in the previous year and except for
 the changes in accounting policy stated in 1(B).
 
 iv.  The preparation of financial statement 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
 financial statements and the results of operations during the reporting
 period end. Although these estimates are based upon management''s best
 knowledge of current events and actions, actual result could differ
 from these estimates.
 
 v.  During the year ended 31st December 2012, the revised Schedule VI
 notified under the Companies Act, 1956, has become applicable to the
 Company for preparation and presentation of its financial statements.
 The adoption of revised Schedule VI does not impact recognition and
 measurement principles followed for preparation of financial
 statements. However, it has significant impact on presentation and
 disclosures made in the financial statements. Previous year figures
 have been reclassified and regrouped in accordance with the
 requirements applicable in the current year.
 
 (B) Change in accounting policy :
 
 During the year, the Company has retrospectively changed its method of
 providing depreciation on fixed assets pertaining to its Captive Power
 Plants from the ''Straight Line'' to the ''Written Down Value'' at the
 rates prescribed in Schedule XIV to the Companies Act, 1956. This
 change results in more appropriate presentation and gives a systematic
 basis of depreciation charge, representative of the time pattern in
 which the economic benefits flow to the Company. Accordingly, the
 Company has recognized additional depreciation charge of Rs. 320.14
 crores. Amount relating to earlier years of Rs. 279.13 crores has been
 disclosed as exceptional item.
 
 Had the Company continued to use the earlier method of depreciation,
 profit after tax for the year ended 31st December, 2012 would have been
 higher by Rs. 216.27crores.
 
 b) Rights, preferences and restrictions attached to equity shares
 
 The Company has one class of equity shares having a par value of Rs. 2
 per share. Each shareholder is entitled to one vote per equity 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 equity shareholders are eligible to receive remaining
 assets of the Company, after distribution of all preferential amounts,
 in proportion to their shareholding.
 
 As per the records of the Company, including its register of
 shareholders / members and other declarations received from
 shareholders regarding beneficial interest, the above shareholding
 represent both legal and beneficial ownership of shares.
 
 e) Outstanding employee stock options exercisable into 10,165,025
 (previous year - 18,591,025) equity shares of Rs. 2 each fully paid up
 (Refer note 32 (b)).
 
 f) Outstanding tradable warrants and right shares kept in abeyance
 exercisable into 186,690 (previous year- 186,690) and 139,830 (previous
 year- 139,830) equity shares of Rs. 2 each fully paid-up respectively.
 
 * As on 31.12.2011, equity shares were held by erstwhile Ambuja Cement
 India Private Limited, subsidiary of HIL, since amalgamated with HIPL.
 HIL and HIPL are subsidiaries of Holcim Limited, Switzerland, the
 ultimate holding company (Refer note 40).
 
 Notes :
 
 1 Related party relationship is as identified by the Company on the
 basis of available information.
 
 2 During the previous year, the Company became a subsidiary of
 Holderind Investments Limited, Mauritius (HIL), Holderfin BV,
 Netherlands and Holcim Limited, Switzerland (Holcim group companies)
 and accordingly all other Holcim group companies have been reported as
 fellow subsidiaries.
 
 3 The Company carries its Corporate Social Responsibility (CSR)
 activities through Ambuja Cement Foundation (ACF) and run schools at
 plant locations through Ambuja Vidya Niketan Trust (AVN), charitable
 organization registered under Bombay Public Trust Act, 1950. The
 Company has contributed Rs. 35.00 crores (previous year - Rs. 28.10
 crores) to ACF and Rs. 4.80 crores (previous year - Rs. 4.38 crores) to
 AVN during the current year.
 
 b) Defined benefit plans - as per actuarial valuation
 
 The Company has defined benefit gratuity plan. Every employee who has
 completed five years or more of service gets a gratuity on departure at
 15 days salary (last drawn salary) for each completed year of service.
 The scheme is funded with Life Insurance Corporation of India.
 
 The Company has also agreed to provide certain additional
 post-employment healthcare benefits to senior employees. These benefits
 are unfounded.
 
 The following tables summaries the components of net benefit / expense
 recognized in the statement of profit and loss and the funded status
 and amounts recognized in the balance sheet for the respective plans :
 
 c) Basis used to determine expected rate of return on assets :
 
 To develop the expected long-term return on assets assumption, the
 company considered the current level of returns declared on its
 insurance policy. The fund manager is weighing the expected return for
 each asset class to determine the actual return on asset for the
 portfolio. This resulted in the selection of the 8.50 % assumption for
 gratuity (funded) plan and 8.52% assumption for provident fund plan
 managed by a trust set by the company.
 
 d) 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.
 
 e) The Company expects to contribute Rs. 7.50 crores (previous year -
 Rs. 6.00 crores) to gratuity fund in the next year.
 
 g) Amount recognized as an expense in respect of compensated absences
 is Rs. 18.59 crores (previous year - Rs. 14.02 crores).
 
 h) Provident fund managed by a trust set up by the Company
 
 The Company has contributed Rs. 6.33 crores (previous year - Rs. 6.66
 crores) towards provident fund liability. During the year, in
 accordance with guidance issued by the Actuarial Society of India for
 measurement of interest shortfall of provident fund liabilities,
 interest shortfall of Rs. 0.15 crore is charged to Statement of profit
 and loss. During the previous year, Rs. 0.76 crore was recognized
 towards deficit of provident fund liabilities.
 
 2.  During the previous year, the Company became a subsidiary of
 Holderind Investments Limited, Mauritius and Holcim Limited,
 Switzerland, the ultimate holding company.
 
 3.  Capital work in progress includes (a) machinery in transit Rs.
 10.38 crores (previous year- Rs. 11.29 crores) and (b) expenditure
 during construction for project Rs. 10.97 crores (previous year - Rs.
 5.82 crores).
 
 4.  Sale of products includes Sales tax / VAT remission and subsidy of
 Rs. 33.48 crores (previous year - Rs. 47.49 crores).
 
 5. Excise duty on sales amounting to Rs. 1,264.74 crores (previous
 year - Rs. 1,073.81 crores) has been reduced from sales in the
 Statement of profit and loss and excise duty on change in inventories
 of finished goods and work-in-progress amounting to Rs. 10.96 crores
 (previous year - Rs. 2.49 crores) has been considered as other
 expenses.
 
 6.  Loss on assets sold, discarded and written off includes
 preoperative expenses and capital work in progress incurred on certain
 capital projects written off during the year amounting to Rs. Nil
 (previous year - Rs. 8.92 crores).
 
 7.  During the year, the Company through its fraud risk management
 mechanism, has detected certain instances of misappropriation in the
 nature of receiving undue benefit by employees in collusion with
 vendors / others which has resulted in a loss to the Company of Rs.
 0.73 crore in one instance and amount is not determinable in other
 instances, which the management believes are insignificant to the size
 and operations of the Company. Investigations relating to these matters
 have completed and appropriate actions have been taken by the Company,
 
 8.  In the previous year, prior period expenses amounting to Rs. 3.81
 crores and Rs. 7.78 crores are included in Miscellaneous expenses and
 Legal and professional fees respectively.
 
 9.  During the previous year, the Company had changed (with
 retrospective effect) its method of measurement of compensation cost
 relating to employee stock options from intrinsic value method to fair
 value method for all outstanding unvested employee stock options at the
 beginning of the year. Accordingly the Company had recognized an
 additional expense of Rs. 33.12 crores. Amount relating to earlier
 years of Rs. 24.25 crores had been disclosed as exceptional item in the
 previous year.
 
 10.  Provision for doubtful debts and advances (net) includes Rs.
 31.84 crores pertaining to the period upto 31st December, 2011, towards
 claims in respect of certain incentives receivable from the government,
 where there exists an uncertainty with respect to its full
 recoverability due to government''s contention of non-fulfillment of
 certain conditions.
 
 11.  Figures less than Rs. 50,000/- have been shown at actual,
 wherever statutorily required to be disclosed, as the figures have been
 rounded off to the nearest lakh.
 
 12.  Figures of the previous year have been regrouped / rearranged
 wherever necessary to conform to the current year''s presentation.