1.  NATURE OF OPERATIONS
 
 HeidelbergCement India Limited (hereinafter referred to as HCIL or
 the Company) is a Company formed and registered under the Companies
 Act, 1956. The principal activity of HCIL is the manufacture of
 Portland cement at its four locations viz. Ammasandra (Karnataka),
 Damoh (Madhya Pradesh), Jhansi (Uttar Pradesh) and Raigad
 (Maharashtra).
 
 (a) Basis of Preparation
 
 The financial statements have been prepared to comply in all material
 respects with the Notified Accounting Standard by the 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 provision for impairment is made and
 revaluation is carried out. The accounting policies are consistent with
 those used in the previous year.
 
 (b) Use of Estimates
 
 The preparation of financial statements 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 the
 financial statements and the results of operations during the
 reporting year. Although these estimates are based upon management''s
 best knowledge of current events and actions, actual results could diff
 er from these estimates.
 
 (c) 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. Borrowing costs
 relating to acquisition of fixed assets which takes substantial period
 of time to get ready for its intended use are also included to the
 extent they relate to the period till such assets are ready to be put
 to use.
 
 (d) Depreciation on fixed assets
 
 (i) Depreciation on all fixed assets is provided on Straight Line
 Method as per Schedule XIV of the Companies Act, 1956 on pro-rata basis
 with reference to the month of addition/ sale. The management of the
 Company is of the view that this depreciation rate fairly represents
 the useful life of the assets. Most of the Plant and Machinery have
 been considered as continuous process plant based on technical
 evaluation and reports.
 
 (ii) Ropeways are depreciated over an estimated useful life of 2-8
 years.
 
 (iii) Motor Cars are depreciated over an estimated useful life of 5
 years.
 
 (iv) Assets costing less than Rs.5,000 are fully depreciated in the
 year of purchase.
 
 (v) In respect of the revalued assets, the diff erence between the
 depreciation calculated on the revalued amount and that calculated on
 the original cost is recouped from the Revaluation Reserve Account.
 
 (vi) Leasehold Land is amortized over the period of initial lease term
 ranging from 5 to 20 years.
 
 (e) Intangibles
 
 Costs incurred on acquisition of intangible assets are capitalized and
 amortized on a straight-line basis over their technically assessed
 useful lives, as mentioned below:
 
 (f) Impairment
 
 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 fl ows are discounted
 to their present value using a pre-tax discount rate that refl ects
 current market assessments of the time value of money and risks specifi
 c to the asset. For the purpose of accounting of impairment, due
 consideration is given to revaluation reserve, if any.  After
 impairment, depreciation is provided on the revised carrying amount of
 the assets over its remaining useful life.
 
 A previously recognized impairment loss is increased or reversed
 depending on changes in circumstances. However the carrying value after
 reversal is not increased beyond the carrying value that would have
 prevailed by charging usual depreciation if there was no impairment.
 
 (g) 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 on
 an individual investment basis. Long-term investments are carried at
 cost. However, provision for diminution in value is made to recognise a
 decline other than temporary in the value of the investments.
 
 (h) Inventories
 
 Inventories are valued as follows:
 
 Raw materials, stores and spares Lower of cost and net realisable
 value. However, materials and other and Packing materials 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.  Cost is determined on a weighted
 average basis and includes cost incurred in bringing the material to
 its present location and condition.  Stock-in-process and Finished
 goods Lower of cost and 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.  Scrap Net
 realizable value.  Net realisable 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.
 
 (i) 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.
 
 (i) Sale of Goods
 
 Revenue is recognised when the significant risks and rewards of
 ownership of the goods is passed to the buyer. Excise Duty deducted
 from turnover (gross) is the amount that is included in the amount of
 turnover (gross) and not the entire amount of liability arose during
 the year. Sales are reported net of sales tax, incentives and rebates.
 
 (ii) Interest
 
 Revenue is recognised on a time proportion basis taking into account
 the amount outstanding and the rate applicable.
 
 (j) 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.
 
 (k) Leases
 
 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 recognised as an expense
 in the Profit & Loss Account on a straight line basis over the lease
 period.
 
 (l) 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 settlement of monetary items or on
 reporting Company''s monetary items at rates different from those at
 which they were initially recorded during the year, or reported in
 previous financial statements, are recognised 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 (not for hedging firm commitment/highly probable forecast
 transactions) 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.
 
 (m) Derivative financial instruments and hedge accounting
 
 The Company has adopted the principles of AS 30 Financial Instruments:
 Recognition and Measurement in respect of its derivative financial
 instruments that are not covered by AS 11 Accounting for the effects
 of changes in Foreign Exchange Rates.
 
 The Company uses derivative financial instrument such as cross
 currency interest rate swaps to hedge its foreign currency risks and
 interest rate risks. Such derivative financial instruments are
 initially recognised at fair value on the date on which a derivative
 contract is entered into and are subsequently premeasured at fair value.
 Derivatives are carried as financial assets when the fair value is
 positive and as financial liabilities when the fair value is negative.
 Any gains or losses arising from changes in the fair value of
 derivatives are taken directly to the Profit and loss account, except
 for the effective portion of cash fl ow hedge, which is recognised in
 Hedging Reserve Account included in the Reserves and Surplus while any
 ineffective portion is recognised immediately in the Profit and loss
 account.  For the purpose of hedge accounting, hedges are classified
 as:
 
 - Fair value hedges when hedging the exposure to changes in the fair
 value of a recognised asset or liability.
 
 - Cash flow hedges when hedging exposure to variability in cash fl ows
 that is either attributable to a particular risk associated with a
 recognised asset or liability.
 
 At the inception of a hedge relationship, the Company formally
 designates and documents the hedge relationship to which the Company
 wishes to apply hedge accounting and the risk management objective and
 strategy for undertaking the hedge. The documentation includes identifi
 cation of the hedging instrument, the hedged item or transaction, the
 nature of the risk being hedged and how the entity will assess the eff
 ectiveness of changes in the hedging instrument''s fair value in off
 setting the exposure to changes in the hedged item''s fair value or cash
 flows attributable to the hedged risk. Such hedges are expected to be
 highly effective in achieving off setting changes in fair value or
 cash flows and are assessed on an ongoing basis to determine that they
 actually have been highly effective throughout the financial
 reporting periods for which they were designated.
 
 (n) Employee Benefits
 
 (i) Superannuation Fund (being administered by Trusts) and Employees''
 State Insurance Corporation (ESIC) are defined contribution schemes
 and the contributions are 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 contribution payable to the
 respective funds.
 
 (ii) Retirement benefits in the form of Provident Fund contributed to
 Statutory Provident Fund is a defined contribution scheme and the
 payments are charged to the Profit and Loss Account of the year when
 the payments to the respective funds are due. There are no obligations
 other than contribution payable to Provident Fund Authorities.
 
 (iii) Retirement benefits in the form of Provident Fund contributed to
 Trust set up by the employer is a defined benefit scheme and the
 payments are charged to the Profit and Loss Account of the year when
 the payments to the Trust are due. Shortfall in the funds, if any, is
 adequately provided for by the Company.
 
 (iv) Gratuity liability (being administered by a Trust) is a defined
 benefit obligation and is provided for on the basis of an actuarial
 valuation done using projected unit credit method at the end of each 
 financial year.
 
 (v) Short term compensated absences are provided for based on
 estimates. Long term compensated absences are provided for based on
 actuarial valuation using projected unit credit method at the end of
 each financial year.
 
 (vi) Actuarial gains/ losses are immediately taken to Profit and Loss
 Account and are not deferred.
 
 (vii) Expenses incurred under Voluntary Retirement Scheme are charged
 to Profit & Loss account immediately.
 
 (o) Income Taxes
 
 Tax expense comprises of current, deferred and fringe benefit tax.
 Current income tax and fringe benefit tax is measured at the amount
 expected to be paid to the tax authorities in accordance with the
 Indian Income-tax Act, 1961. Deferred income taxes reflect 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 off set, if a legally
 enforceable right exists to set off current 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 recognizes 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
 eff ect that Company will pay normal Income Tax during the specifi ed
 period.
 
 (p) Segment Reporting Policies
 
 (i) Identification of segments:
 
 The Company''s operating businesses are organized and managed according
 to the nature of products and predominant source of the risk for the
 Company is business product, therefore business segment has been
 considered as primary segment. The analysis of geographical segments is
 based on the areas in which the Company operates.  (ii) 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.
 
 (q) Provisions
 
 A provision 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 are adjusted to reflect the current best
 estimates.
 
 (r) 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.
 
 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, if
 any.
 
 (s) Cash and Cash Equivalents
 
 Cash and cash equivalents in the cash fl ow statement comprise cash at
 bank and in hand and short-term investments with an original maturity
 of three months or less.