1.  Basis of preparation
 
 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. The financial statements have
 been prepared under the historical cost convention on an accrual basis
 except in case of assets for which revaluation is carried out. 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 the 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 management''s
 best knowledge of current events and actions, actual results could
 differ from these estimates.  Difference between the actual result and
 estimates are recognised in the period in which the results are known/
 materialized.
 
 3.  Fixed assets
 
 Fixed assets are stated at cost (or revalued amounts, as the case may
 be), less accumulated depreciation and impairment losses if any. Cost
 comprises the purchase price and any attributable cost of bringing the
 asset to its working condition for its intended use.
 
 Intangible assets are recognised on the basis of recognition criteria
 as set out in the relevant Accounting Standard.
 
 4.  Depreciation/amortisation
 
 Depreciation is provided on fixed assets over the useful lives of the
 assets estimated by the management, which are equivalent to the rates
 prescribed in Schedule XIV to the Companies Act, 1956. The following
 methods of depreciation are used for fixed assets:
 
 Plant and machinery at''         Straight Line Method 
 Salem (excluding earth
 moving machinery)
 and on all fixed assets
 at Wind Farm Unit,
 Bangalore Works and Dalmia 
 Chini Mills (Sugar Units) 
 
 Leasehold Land                    Amortised over the period of 
                                   lease, i.e., 99 years 
 
 Revalued assets                   Depreciation on amount added
                                   on revaluation of fixed assets
                                   is transferred from Revaluation
                                   Reserve.  
 
 Computer Software                 Amortised over a period of 3-5
                                   years on a Straight line basis.
 
 Remaining Fixed Assets            Written Down Value Method
 
 
 5.  Impairment of assets
 
 The carrying amounts of assets are reviewed at each balance sheet date
 if there is any indication of impairment based on internal/external
 factors, an impairment loss is recognized wherever the carrying amount
 of an asset exceeds its recoverable amount. The recoverable amount is
 the greater of the asset''s net selling price and value in use. In
 assessing value in use, the estimated future cash flows are discounted
 to their present value at the weighted average cost of capital.
 
 After impairment, depreciation is provided on the revised carrying
 amount of the asset over its remaining useful life.
 
 Previously recognised impairment losses are reversed to the extent the
 recoverable amount exceeds the carrying amount.
 
 6.  Leases
 
 Where the Company is the lessee
 
 Leases where the lessor effectively retains substantially all the risks
 and benefits of ownership of the leased item, are classified as
 operating leases. Operating lease payments are recognized as an expense
 in the Profit and Loss account on a straight-line basis over the lease
 term.
 
 Where the Company is the lessor
 
 Assets subject to operating leases are included in fixed assets. Lease
 income is recognised in the Profit and Loss Account on a straight-line
 basis over the lease term. Costs, including depreciation are recognised
 as an expense in the Profit and Loss Account. Initial direct costs such
 as legal costs, brokerage costs, etc. are recognised immediately in 
 the Profit and Loss Account.
 
 7.  Government grants and subsidies
 
 Grants and subsidies from the government are recognized when there is
 reasonable assurance that the grant/ subsidy will be received and all
 attaching conditions will be complied with.
 
 When the grant or subsidy relates to an expense item, it is recognized
 as income over the periods necessary to match them on a systematic
 basis to the costs, which it is intended to compensate.
 
 Where the grant or subsidy relates to an asset, its value is deducted
 from the gross value of the asset concerned in arriving at the carrying
 amount of the related asset.
 
 8.  Borrowing costs
 
 Borrowing costs directly attributable to the acquisition, construction
 or production of an asset that necessarily takes a substantial period
 of time to get ready for its intended use or sale are capitalized as
 part of the cost of the respective asset. All other borrowing costs are
 expensed in the period they occur. Borrowing costs consist of interest
 and other costs that an entity incurs in connection with the borrowing
 of funds.
 
 9.  Segment reporting Identification of segments
 
 The Company''s operating businesses are organized and managed separately
 according to the nature of products manufactured and services provided,
 with each segment representing a strategic business unit that offers
 different products. The analysis of geographical segments is based on
 the areas in which major operating divisions of the Company operate.
 
 Inter segment Transfers
 
 The Company accounts for intersegment sales and transfers as if the
 sales or transfers were to third parties at current market prices.
 
 Allocation of common costs
 
 Common allocable costs are allocated to each segment on reasonable
 basis.
 
 Unallocated items
 
 Includes general corporate income and expense items which are not
 allocable to any business segment.
 
 Segment policies
 
 The company prepares its segment information in conformity with the
 accounting policies adopted for preparing and presenting the financial 
 statements of the company as a whole.
 
 10.  Employee benefits
 
 a.  Employee benefits in the form of the Company''s contribution to
 provident fund, pension fund, superannuation fund and ESI are
 considered as defined contribution plan and charged to the profit and
 loss account of the year when the contributions to the respective funds
 are due. There are no other obligations other than the contributions
 payable to the respective funds.
 
 b.  Retirement benefits in the form of gratuity and provident fund
 contribution to Dalmia Cement Provident Fund Trust are defined benefit
 plans.  Gratuity is provided for on the basis of an actuarial valuation
 on projected unit credit method made at the end of each financial year.
 Contributions to Dalmia Cement Provident Fund Trust are charged to the
 profit and loss account of the year when the contributions to the fund
 is due. Shortfall in the funds, if any, is adequately provided for by
 the Company.
 
 c.  Leave encashment including compensated absences are provided for
 based on actuarial valuation at the year end. The actuarial valuation
 is done as per projected unit credit method.
 
 d.  Actuarial gains/losses are immediately taken to profit and loss
 account and are not deferred.
 
 e.  Payments made under the Voluntary Retirement Scheme are charged to
 the Profit and Loss account in the year in which the same are incurred.
 
 11.  Inventories
 
 a.  Finished goods are valued at lower of cost or net realisable value.
 In case of Dead Burnt Magnesits Dust Stocks to the extent these are
 considered saleable, valuation is done at raw materials cost plus
 packing charges or net realizable value, whichever is lower.
 By-products are valued at net realisable value. Cost includes direct
 materials and labour and a proportion of manufacturing overheads based
 on normal operating capacity. Cost of finished goods includes excise
 duty. Cost is determined on a weighted average basis.
 
 b.  Work in progress is valued at lower of cost or net realisable
 value. Cost is determined on a weighted average basis.
 
 c. Stores, Spares and Raw Materials are valued at lower of cost or net
 realisable value. However materials & other items of inventories held
 for use in the production are not written below cost if the finished
 products in which they will be incorporated are expected to be sold at
 or above cost. Cost is determined on a weighted average basis
 
 Net realizable value is the estimated selling price in the ordinary
 course of business, less estimated costs of completion and estimated
 costs necessary to make the sale.
 
 12.  Investments
 
 Investments that are readily realisable and intended to be held for not
 more than a year are classified as current investments. All other
 investments are classified as long- term investments. Current
 investments are carried at lower of cost and fair value determined for
 each category separately. Long-term investments are carried at cost on
 individual investment basis. However, provision for diminution in value
 is made to recognise a decline other than temporary in the value of the
 investments in case of long term investments.
 
 13.  Revenue recognition
 
 Revenue is recognized to the extent that it is probable that the
 economic benefits will flow to the Company and the revenue can be
 reliably measured.
 
 Sale of goods
 
 Revenue is recognised when the significant risks and rewards of
 ownership of the goods have passed to the buyer. Excise Duty deducted
 from turnover (gross) are the amount that is included in the amount of
 turnover (gross) and not the entire amount of liability that arose
 during the year. Sale is net of trade discount and sales tax.
 
 Dividends
 
 Revenue is recognised when the shareholders'' right to receive payment
 is established by the balance sheet date.
 
 Insurance Claim
 
 Claims lodged with the insurance companies are accounted on accrual
 basis to the extent these are measurable and ultimate collection is
 reasonably certain.
 
 14.  Foreign currency transactions 
 
 (i) Initial recognition
 
 Foreign currency transactions are recorded in the reporting currency,
 by applying to the foreign currency amount the exchange rate between
 the reporting currency and the foreign currency at the date of the 
 transaction.
 
 (ii) Conversion
 
 Foreign currency monetary items are reported using the closing rate.
 Non-monetary items which are carried in terms of historical cost
 denominated in a foreign currency are reported using the exchange rate
 at the date of the transaction; and non-monetary items which are
 carried at fair value or other similar valuation denominated in a
 foreign currency are reported using the exchange rates that existed
 when the values were determined.
 
 (iii) Exchange differences
 
 Exchange differences arising on a monetary item that, in substance,
 form part of the company''s net investment in a non-integral foreign
 operation is accumulated in a foreign currency translation reserve in
 the financial statements until the disposal of the net investment, at
 which time they are recognised as income or as expenses.
 
 Exchange differences arising on the settlement of monetary items not
 covered above, or on reporting such monetary items of company at rates
 different from those at which they were initially recorded during the
 year, or reported in previous financial statements, are recognized as
 income or as expenses in the year in which they arise.
 
 (iv) Forward exchange contracts not intended for trading or speculation
 purposes
 
 The premium or discount arising at the inception of forward exchange
 contracts is amortised as expense or income over the life of the
 contract. Exchange differences on such contracts are recognised in the
 statement of profit and loss in the year in which the exchange rates
 change. Any profit or loss arising on cancellation or renewal of
 forward exchange contract is recognised as income or as expense for the
 year.
 
 15.  Income taxes
 
 Tax expense comprises of current and deferred. Current income tax is
 measured at the amount expected to be paid to the tax authorities in
 accordance with the Income Tax Act, 1961. Deferred income tax reflects
 the impact of current year timing differences between taxable income
 and accounting income for the year and reversal of timing differences
 of earlier years.
 
 Deferred tax is measured based on the tax rates and the tax laws
 enacted or substantively enacted at the balance sheet date. Deferred
 tax assets and deferred tax liabilities are offset, if a legally 
 enforceable right exists to set off currentn tax assets against 
 current tax liabilities and the deferred tax assets and deferred 
 tax liabilities relate to the taxes on income levied by same 
 governing taxation laws.  Deferred tax assets are recognised only 
 to the extent that there is reasonable certainty that sufficient future
 taxable income will be available against which such deferred tax assets
 can be realised. In situations where the company has unabsorbed
 depreciation or carry forward tax losses, all deferred tax assets are
 recognised only if there is virtual certainty supported by convincing
 evidence that they can be realised against future taxable profits.
 
 At each balance sheet date the Company re-assesses unrecognised
 deferred tax assets. It recognises unrecognised deferred tax assets to
 the extent that it has become reasonably certain or virtually certain,
 as the case may be, that sufficient future taxable income will be
 available against which such deferred tax assets can be realised.
 
 The carrying amount of deferred tax assets are reviewed at each balance
 sheet date. The Company writes-down the carrying amount of a deferred
 tax asset to the extent that it is no longer reasonably certain or
 virtually certain, as the case may be, that sufficient future taxable
 income will be available against which deferred tax asset can be
 realised. Any such write-down is reversed to the extent that it becomes
 reasonably certain or virtually certain, as the case may be, that
 sufficient future taxable income will be available.
 
 MAT credit is recognised as an asset only when and to the extent there
 is convincing evidence that the company will pay normal income tax
 during the specified period.  In the year in which the Minimum
 Alternative tax (MAT) credit becomes eligible to be recognized as an
 asset in accordance with the recommendations contained in Guidance Note
 issued by the Institute of Chartered Accountants of India, the said
 asset is created by way of a credit to the profit and loss account and
 shown as MAT Credit Entitlement. The Company reviews the same at each
 balance sheet date and writes down the carrying amount of MAT Credit
 Entitlement to the extent there is no longer convincing evidence to the
 effect that Company will pay normal Income Tax during the specified
 period.
 
 16.  Earnings per share
 
 Basic earnings per share are calculated by dividing the net profit or
 loss for the period attributable to equity shareholders (after
 deducting preference dividends and attributable taxes) by the weighted
 average number of equity shares outstanding during the period. Partly
 paid equity shares are treated as a fraction of an equity share to the
 extent that they were entitled to participate in dividends relative to
 a fully paid equity share during the reporting period. The weighted
 average number of equity shares outstanding during the period is
 adjusted for events of bonus issue, bonus element in a rights issue to
 existing shareholders, share split, and reverse share split
 (consolidation of shares).
 
 For the purpose of calculating diluted earnings per share, the net
 profit or loss for the period attributable to equity shareholders and
 the weighted average number of shares outstanding during the period are
 adjusted for the effects of all dilutive potential equity shares.
 
 17.  Provisions
 
 Aprovision is recognised when an enterprise has a present obligation as
 a result of past event and it is probable that an outflow of resources
 will be required to settle the obligation, in respect of which a
 reliable estimate can be made. Provisions are not discounted to its
 present value and are determined based on best estimate required to
 settle the obligation at the balance sheet date. These are reviewed at
 each balance sheet date and adjusted to reflect the current best
 estimates.
 
 Contingent liabilities are shown by way of note in the Notes to
 Accounts in respect of obligations where based on the evidence
 available, their existence at the Balance Sheet date is considered not
 probable. Contingent assets are neither recognized in the accounts nor
 disclosed.
 
 18.  Cash and cash equivalents
 
 Cash and cash equivalents for the purposes of cash flow  statement
 comprise cash at bank and in hand.