(a) Basis of Accounting
 
 The financial statements are prepared under the historical cost
 convention, on an accrual basis and in accordance with the generally
 accepted accounting principles in India, the applicable mandatory
 Accounting Standards as notified by the Companies (Accounting Standard)
 Rules, 2006 and the relevant provisions of the Companies Act, 1956.
 
 (b) Use of Estimates
 
 The preparation of financial statements require estimates and
 assumptions to be made that affect the reported amount of assets and
 liabilities on the date of the finanacial statements and the reported
 amount of revenues and expenses during the reporting period. Difference
 between actual results and estimates are recognized in the period in
 which the results are known/materialised.
 
 (c) Fixed Assets
 
 Fixed Assets, other than those which have been revalued, are stated at
 their original cost which includes expenditure incurred in the
 acquisition and construction/installation and other related expenses.
 In respect of qualifying assets, related pre-operational expenses
 including borrowing cost are also capitalised and included in the cost.
 Claims in respect of capital assets are adjusted as and when settled.
 Revalued assets are stated at the values determined on revaluation.
 
 Assets acquired under finance lease are recognised at lower of fair
 value or present value of minimum lease payment
 
 Capital Work in Progress is stated at cost which includes expenses
 incurred during construction period, interest on amount borrowed for
 acquisition of qualifying assets, advances to suppliers and other
 expenses incurred in connection with project implementation in so far
 as such expenses relate to the period prior to the commencement of
 commercial production.
 
 (d) Depreciation
 
 i) Depreciation on assets is provided on Straight Line Method as
 follows :
 
 On assets of Cement Division acquired after 1st April, 1987,
 depreciation is provided at the rates prescribed in Schedule XIV to the
 Companies Act, 1956. On other assets of Cement Division, depreciation
 is provided on the specified period basis as per the rates as
 prescribed in Schedule XIV to the Companies Act, 1956.
 
 On the assets of other Divisions, depreciation is provided at the rates
 prescribed in Schedule XIV to the Companies Act, 1956.
 
 On amount added on revaluation, depreciation is provided at the rates
 considered reasonable.
 
 On assets acquired under finance lease on or after 1st April, 2001,
 depreciation is provided at the rates precribed in Schedule XIV to the
 Companies Act,1956.
 
 ii) Leasehold land is amortised over the period of the lease.
 
 iii) Depreciation on assets built on leasehold land, which is
 transferable to the lessor after the lease period is amortised over the
 lease period of the land.
 
 (e) Investments
 
 i) Long Term Investments are stated at cost. Provision for diminution
 in value is made if the decline in value is other than temporary in the
 opinion of the management.
 
 ii) Current Investments are stated at lower of cost or fair value.
 
 If) Inventories
 
 i) Stock-in-Trade viz. Raw Materials, Finished Goods and Materials
 under Process are valued at Cost or Net Realisable Value, whichever is
 lower. Cost of Raw Materials are determined on FIFO basis except for
 Jute Division where it is determined on weighted average basis. Cost of
 Finished Goods and Materials under Process are determined on weighted
 average basis. Net Realisable Value is the estimated selling price in
 the ordinary course of business less estimated cost of completion and
 the estimated cost necessary to make the sale. Stores and Spare Parts
 etc. are valued at cost determined on weighted average basis. However
 materials and other items held for use in the production of inventories
 are not written down below cost if the finished products in which they
 will be incorporated are expected to be sold at or above cost.
 
 ii) Machinery Spares not in regular use are written off over the
 estimated useful life of the respective assets.
 
 iii) Excise Duty & Cess on finished goods are shown separately in
 (Increase)/Decrease in Stocks.
 
 (g) Employee Benefits
 
 i) Employee benefits of short term nature are recognized as expense as
 and when it accrues.
 
 ii) Employee benefits of long term nature are recognized as expense
 based on actuarial valuation using projected unit credit method.
 
 iii) Post employment benefits in the nature of Defined Contribution
 Plans are recognized as expense as and when it accrues and that in the
 nature of Defined Benefit Plans are recognized as expenses based on
 actuarial valuation using projected unit credit method.
 
 iv) Actuarial gains and losses are recognized immediately in the Profit
 & Loss Account as income or expense.
 
 v) Expenditure incurred on Voluntary Retirement Scheme is charged to
 Profit & Loss Account immediately.
 
 (h) Foreign Currency Transactions and Derivatives
 
 i) Transactions in foreign currency are recorded at the rate of
 exchange prevailing on the date of transaction. Year end balance of
 foreign currency transactions is translated at the year end rates.
 Exchange differences arising on settlement of monetary items or on
 reporting of monetary items at rates different from those at which they
 were initially recorded during the period or reported in previous
 financial statements are recognized as income or expense in the period
 in which they arise.
 
 ii) In respect of transactions covered by Forward Exchange Contracts
 (except for firm commitments and highly probable forecast
 transactions), the difference between the forward rate and exchange
 rate at the inception of the contract is recognized as income or
 expense over the life of the contract. Exchange differences between
 rate at the inception of such contracts and rate on the reporting date
 are recognized as income or expense for the period.
 
 iii) Outstanding forward contracts for firm commitments and highly
 probable forecast transactions and derivative contracts, other than
 those stated above, are marked to market and the resulting loss, if
 any, is charged to the Profit & Loss Account. Gain, if any, on such
 marking to market is not recognized as a prudent accounting policy.
 
 (i) Recognition of Income and Expenditure
 
 i) All Income and Expenditure are accounted for on accrual basis except
 as otherwise stated.
 
 ii) Gross Sales are inclusive of excise duty and net of returns, claims
 and discount etc.
 
 iii) Export benefit entitlements to the Company under the EXIM/Foreign
 Trade Policy is recognised in the year of exports on accrual basis.
 
 iv) Sale of Certified Emission Reductions (CERs) is recognized as
 income on the delivery of the CERs to the buyers account as evidenced
 by the receipt of confirmation of execution of delivery instructions.
 
 0) Taxation
 
 Provision for Current Income Tax is made in accordance with the Income
 Tax Act, 1961 The deferred tax charge or credit is recognised using
 substantively enacted tax rates subject to consideration of prudence on
 timing differences between book and tax profits.
 
 Provision for wealth tax liability is estimated in accordance with the
 Wealth Tax Act, 1957.
 
 (k) Government Grants
 
 Grants received from Government agencies against specific fixed assets
 are adjusted to the cost of the assets and capital grants for Project
 Capital Subsidy are credited to Capital Reserve. Revenue Grants are
 recognized as Other Income or reduced from respective expenses.
 
 (l) Impairment
 
 An asset is treated as impaired when the carrying cost of the asset
 exceeds its recoverable value being higher of value in use and net
 selling price. Value in use is computed at net present value of cash
 flow expected over the balance useful life of the assets. An impairment
 loss is recognised as an expense in the Profit & Loss Account in the
 year in which an asset is identified as impaired. The impairment loss
 recognised in earlier accounting period is reversed if there has been
 an improvement in recoverable amount.
 
 (m) Borrowing Costs
 
 Interest and other borrowing costs directly attributable to the
 acquisition, construction or installation of qualifying capital assets
 till the date of commencement of commercial use of the assets are
 capitalised. Other borrowing costs are recognised as an expense in the
 period in which they are incurred.
 
 (n) Provisions
 
 Provisions are recognised where reliable estimate can be made for
 probable outflow of resources to settle the present obligation as a
 result of past event and the same is reviewed at each Balance Sheet
 date.
 
 (o) Contingent Liabilities
 
 Contingent Liabilities are not provided for and are separately shown by
 way of a note in this Schedule.