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.
 
 (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 managements best
 knowledge of current events and actions, actual result could differ
 from these estimates.
 
                                           As at        As at
                                        31.12.2010     31.12.2009
                                     Rs. in Crores     Rs. in Crores
 
 2. a)  Contingent liabilities not 
 provided for in respect of :
 
 (i) Bank Guarantee given to Mines & 
 Geology Dept. Government of Rajasthan 
 for setting up of Cement plant             -             2.00
 
 (ii) Claims against the Company not 
 acknowledged as debts
 
 (a)  Disputed liability relating to 
 labour matters                           38.46          44.09
 
 (b)  For acquisition of land             50.25          51.39
 
 (c)  For Non Agriculture Assessment Tax    -             2.65
 
 (d)  Others                               4.18          23.38
 
 (iii) Tax matters
 
 (a) Disputed liability in respect of 
 Income-tax demands (including interest) 
 -  matters                               57.53          60.78 
 under appeal
 
 
 (b) Disputed Sales-tax demands (including 
 interest and penalty)
                                          12.26          25.96
 
 (c)    Disputed Excise demands - matters 
 under appeal (Deposit with Excise 
 Department                                7.61          26.66
 Rs. 0.21 crore; Previous year Rs. 0.21 crore) 
 
 (d)  Disputed Customs demands - matters 
      under appeal                         0.52           1.43
 
 (e)  Disputed liability of RTO Tax on 
      Mining Machinery                     0.80           0.62
 
 (iv) Disputed liabilities relating to Railway Freight on Cement -
 matter once decided in favour of the Company by the Honourable High
 Court of Gujarat was remanded back by the Honourable Supreme Court
 pursuant to a Special Leave Petition filed by the railways. 
                                            5.51           5.51
 
 (v) Disputed liabilities relating to Coal 
     claims - matter pending in
     the Honourable High Court :
 
 (a) Railway freight on Coal                1.60           1.49
 
 (b) Penal freight on Excess Weight of Coal 0.24           0.24
 
 (c) Interest on Premium on Coal            3.29           3.29
 
 In respect of items above, future cash outflows in respect of
 contingent liabilities are determinable only on receipt of judgements /
 decisions pending at various forums / authorities.
 
 b) The Honourable High Court of Himachal Pradesh has passed an order in
 favour of the Company for its claim in respect of power subsidy in the
 form of Power Tariff Freeze (PTF) and Peak Load Exemption Charges
 (PLEC). Against this, Government of Himachal Pradesh on 1st May, 2004
 has issued 296 5.13% H P Infrastructure Development Bonds of face value
 of Rs.10 lacs each, having a value of Rs.29.60 crores redeemable after
 10 years and balance of Rs.0.08 crore is refunded to the Company.
 
 The Government of Himachal Pradesh has filed Special Leave Petition in
 the Honourable Supreme Court against the decision of the Honourable
 High Court of Himachal Pradesh. The Company has given an undertaking to
 refund Rs.29.68 crores paid by the State Government together with
 interest thereon up to the date of final judgment in time bound manner,
 in the event that the matter is decided against the Company.  29.68
 29.68
 
 c) The Government of Rajasthan has granted 75% exemption from Sales Tax
 in respect of Rabriyawas unit. However, the eligibility of exemption in
 excess of 25% has been contested by the State Government in a similar
 matter of another Company and the matter is pending before the
 Honourable Supreme Court. The Company has given an undertaking to the
 Government of Rajasthan that the Company will deposit the differential
 amount of Sales Tax, in case the Supreme Courts decision goes against
 in the matter referred above.  82.16 82.16
 
 d) Writ petition filed against the order of Madhya Pradesh State Mining
 Department demanding Rs. 4.76 crores and interest Rs. 1.13 crores
 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 factory
 in Chhattisgarh. The matter is now pending before Honourable High Court
 at Bilaspur.  56.25 52.51
 
 VIII Provident Fund managed by a Trust set up by the Company
 
 Pending the issuance of the Guidance Note from the Actuarial Society of
 India, the Companys actuary has expressed his inability to reliably
 measure the provident fund liability. The Company has recognised an
 expense of Rs. 0.43 crore (31.12.2009 Rs. 0.17 crore) towards the
 deficit in the fund.
 
 3.  Capital Work in Progress includes (a) machinery in transit Rs.
 10.50 crores (31.12.2009 - 8.93 crores) and (b) expenditure during
 construction for project - Rs.14.13 crores (31.12.2009 - Rs. 110.86
 crores).
 
 4.  During the current year, the Company has sold its investment in
 ING Vysya Life Insurance Company Limited and has recognised profit of
 Rs.  72.63 crores.
 
 5.  During the current year, the Company has estimated provision for
 slow and non moving spares based on age of the inventory. Accordingly,
 the Company has recognised a provision of Rs.61.03 crores as at
 December 31, 2010. The provision based on such parameters applied to
 spares inventory at the beginning of the year amounting to Rs.46.10
 crores has been disclosed as an exceptional item in the profit and loss
 account.
 
 6.  During the year, the Company has subscribed to 6.50% Cumulative
 Redeemable Preference Shares amounting to Rs.15 crores in M/s.  Counto
 Microfine Products Private Limited, India, a joint venture company. As
 per the Supplementary Share Subscription Agreement, the Company has
 agreed to buy 4,010,002 equity shares representing 50% equity stake in
 the Company at an average price of Rs.24.94 per share amounting to
 Rs.10 crores from the existing shareholders of the joint venture
 company. The Company has given an advance of Rs.7.50 crores for
 purchase of the said 50% stake which is included in Advances
 recoverable in cash or in kind.
 
 7. Excise duty on sales amounting to Rs. 866.82 crores (31.12.2009
 Rs.644.55 crores) has been reduced from sales in profit & loss account
 and excise duty on increase/decrease in stock amounting to Rs.4.92
 crores (31.12.2009 Rs.(3.27) crores) has been considered as (income)/
 expense in Schedule N of financial statement.
 
 8.  During the previous year the Company had prepaid deferred sales
 tax loan at one of its unit and had recognised discounting income of
 Rs.46.16 crores.
 
 9.  Figures less than Rs. 50,000/- have been shown at actuals,
 wherever statutorily required to be disclosed, as the figures have been
 rounded off to the nearest lac.
 
 10.  Figures of the previous year have been regrouped wherever
 necessary to conform to the current years presentation.