1.  Contingent Liabilities
 
 a) Claims against the Company not acknowledged as liabilities in
 respect of:
 
                                               As at         As at
 Particulars                              31.03.2011    31.03.2010
                                        (Rs. /Lakhs)  (Rs. /Lakhs)
  
 i.  Sales tax matters                      4,244.18      4,176.11
 
 ii. Customs, excise and service
     tax matters                              173.99      2,598.36
 
 iii. Income Tax matters                    2,236.61      2,149.02
 
      Total                                 6,654.78      8,923.49
 
 iv.  Advance paid against above            2,129.71      1,591.81
 
 b) Guarantees issued by bank have been secured by a first pari-passu
 charge on the entire current assets, present and future, including
 receivables of the Company and second pari-passu charge on all fixed
 assets, land and buildings present and future, except land and building
 situated at Podanur (on which State Bank of India has exclusive charge)
 and at Kolkata, to the extent of Rs. 1,814.91 lakhs (previous year Rs.
 2,606.56 lakhs).
 
 c) Estimated amount of contracts to be executed on capital account .–
 Rs. 424.26 lakhs (net of advances – Rs. 342.40 lakhs), [previous year –
 Rs. 326.35 lakhs (net of advances Rs. 136.58 lakhs)].
 
 2.  Disclosure of Retirement Benefits under Accounting Standard
 AS15-Employee Benefits
 
 a.  Defined contribution plan
 
 The Companys contributions of Rs. 266.94 Lakhs (previous year Rs.
 266.98 Lakhs) towards provident fund and Rs. 102.05 Lakhs (previous
 year Rs. 98.64 Lakhs) towards superannuation fund are charged to Profit
 and Loss account. The contributions payable to the plan by the Company
 are at a rate specified in rules to the schemes.
 
 b.  Defined Benefit plan
 
 The Companys contribution towards its gratuity liability is a defined
 benefit retirement plan. The Company makes contributions to the trust
 from time to time which in turn makes contributions to the Employees
 Group Gratuity-cum-Life Assurance scheme of the Life Insurance
 Corporation of India. The scheme provides for lump sum payment to
 vested employees at retirement, death while in employment or on
 termination of employment of an amount equivalent to fifteen days
 salary payable for each completed year of service or part thereof in
 excess of six months. Vesting occurs upon completion of five years of
 service.
 
 The present value of the defined benefit obligation and the related
 current service cost were measured using the Projected Unit Credit
 Method with actuarial valuations being carried out at each balance
 sheet date.
 
 3.  Current tax is net off excess provision of earlier years written
 back Rs. 86.20 lakhs (previous year Rs. Nil).
 
 4.  Proposed dividend includes Rs. 7.85 lakhs pertaining to the
 previous year. Tax on distributed profits includes Rs. 1.30 lakhs
 pertaining to the previous year and is net off Rs. 2.56 lakhs reversed
 during the year.
 
 5.  Related Party Disclosures a.  List of related parties
 
 i.  Holding company
 
 - M/s Everest Finvest (India) Private Limited (till 25 March, 2010) 
 
 ii. Enterprise exercising significant influence
 
 - M/s Everest Finvest (India) Private Limited (with effect from 26
 March, 2010) 
 
 iii.  Subsidiary company
 
 - M/s Everest Building Solutions Limited (till 13 April, 2010) 
 
 iv. Associate company *
 
 - M/s Everest Building Solutions Limited (with effect from 14 April,
 2010)
 
 v.  Key management personnel
 
 - Mr. Aditya Vikram Somani, Chairman with effect from 21 June, 2010
 
 - Mr. Manish Sanghi (COO and Director till 30 September, 2010),
 Managing Director with effect from 1 October, 2010
 
 - Mr. M.L. Gupta (Managing Director till 30 September, 2010)
 
 - Mr. Y. Srinivasa Rao, Executive Director (Operations)
 
 *Has not commenced operations
 
 6.  Segment Information
 
 a.  Business Segments:
 
 Based on the guiding principles given in Accounting Standard AS-17
 “Segment Reporting” notified under Companies (Accounting Standard)
 Rules, 2006. The Companys business segments include Building
 products and Steel buildings.
 
 Building products include roofing, ceiling, wall, floor solutions and
 its accessories.
 
 Steel buildings consists of manufacture and supply of pre – engineered
 and smart steel buildings and its accessories.
 
 b.  Geographical segments:
 
 Since the Companys activities/operations are primarily within the
 country and considering the nature of products/services it deals in,
 the risks and returns are the same and as such there is only one
 geographical segment.
 
 c.  Segment accounting policies:
 
 In addition to the significant accounting policies applicable to the
 business segments as set out in note a above, the accounting policies
 in relation to segment accounting are as under:
 
 i.  Segment revenue and expenses:
 
 Segment revenue and expenses include the respective amounts
 identifiable to each of the segments. Unallocable items in segment
 results include income from bank deposits and corporate level expenses.
 
 ii.  Segment assets and liabilities:
 
 Segment assets include all operating assets used by a segment and
 consist principally of operating cash, debtors, inventories and fixed
 assets, net of allowances and provisions, which are reported as direct
 offsets in the balance sheet. Segment liabilities include all operating
 liabilities and consist principally of creditors and accrued
 liabilities. Segments assets and liabilities do not include deferred
 income taxes.
 
 7.  Changes in Foreign Exchange Rates
 
 During the previous years, the Company had changed its policy on
 accounting for fluctuation on foreign exchange based on notification
 F.No.17/33/2008/CL-V dated 31 March, 2009, issued by the Ministry of
 Corporate Affairs, which was effective 7 December 2006, allowing
 capitalisation of exchange differences arising on revaluation of long
 term foreign currency monetary items (like ECB) pertaining to
 depreciable capital assets to the cost of fixed assets and deferment of
 similar exchange fluctuation in “Foreign Currency Monetary Item
 Translation Difference Account” (FCMITDA) where it does not relate to
 acquisition of fixed assets. Further the balance transferred to the
 FCMITDA was amortised over the period that is shorter of the maturity
 period of the monetary items or 31 March, 2011. Unamortised amount in
 FCMITDA was carried forward as deferred cost in the financial
 statements.
 
 In accordance with the said notification, the Company during the
 current year has de-capitalised Rs. 10.29 lakhs (previous year Rs.
 614.15 lakhs) from the cost of fixed assets and transferred Rs. Nil
 (previous year Rs. Nil) to FCMITDA. The aforesaid amounts are being
 depreciated over the remaining useful life of the fixed assets and the
 balance in the FCMITDA account is being amortised over the period 1
 April, 2008 to 31 March, 2011 which is shorter of the maturity period
 of the monetary items or 31 March, 2011.
 
 8.  Employee Stock Option Scheme
 
 The Company has granted 147,705 options (previous year 140,000 options)
 during the year ended 31 March, 2011. The exercise price per option
 shall be the average of the two weeks high and low price of the share
 preceding the date of grant of options on BSE/NSE or closing price of
 the Companys share on that stock exchange on the date prior to the
 date of grant of options, whichever is less. Options granted shall vest
 with the grantee after a period of one year from the date of grant. The
 exercise period of the options is a period of four years after the
 vesting of the options.
 
 The Company has accounted the above options using the intrinsic value
 method. As noted by the Compensation Committee, the exercise price has
 been determined at Rs. 174 and thus there is no stock compensation
 expense under the intrinsic value method for the options granted.
 
 The Guidance Note issued by the Institute of Chartered Accountants of
 India requires the disclosure of pro forma net results and EPS both
 basic and diluted, had the Company adopted the fair value method. Had
 the Company accounted the option under fair value method, amortising
 the stock compensation expense thereon over the vesting period, the
 reported profit for the year ended March 31, 2011 would have been lower
 by Rs. 81.99 lakhs (previous year Rs. 35.56 lakhs) and the basic and
 diluted EPS would have been revised to Rs. 26.55 (previous year Rs.
 20.03) and Rs. 26.55 (previous year Rs. 20.03) respectively. The fair
 value of stock based awards to employees is calculated through the use
 of option pricing models, requiring subjective assumptions which
 greatly affect the calculated values. The said fair value of the
 options have been calculated using Black-Scholes option pricing model,
 considering the expected term of the options to be 5 years, an expected
 dividend yield of 2.60% (previous year 2.84%) on the underlying equity
 shares, volatility in the share price of 44.50% (previous year 53.30%)
 and a risk free rate of interest of 8.06% (previous year 7.42%). The
 Companys calculations are based on a single option valuation approach,
 and forfeitures are recognised as they occur. The expected volatility
 is based on historical volatility of the share price during the year
 after eliminating the abnormal price fluctuations.
 
 9.  Previous year figures have been recast/ regrouped wherever
 necessary to conform to the current years presentation.