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).
 
 2. The Capital Work-in-progress relating to tangible fixed assets
 includes capital advances amounting to Rs. 15,077.68 lacs (Previous
 year: Rs. 1,026.10 lacs) and inventory of capital items in transit
 amounting to Rs. 2,089.73 lacs (Previous Year: Rs. 1,587.64 lacs).
 
 Capital work-in-progress includes expenditure during construction
 period on substantial expansion of existing units of the Company. There
 was no such expenditure in the previous year.
 
 3.  SEGMENTAL INFORMATION:
 
 (a) Business Segment
 
 The Company primarily deals in only one business segment i.e, Cement.
 
 (b) Geographical Segment
 
 The Company primarily operates into two geographical segments i.e.
 within India and outside India which are based on the location of the
 customers.
 
 4. RELATED PARTY DISCLOSURE
 
 (a) Names of related parties:
 
 Names of related parties where control exists 
 irrespective
 of whether transactions have occurred or not:  
 
 Ultimate Holding Company                        Heidelberg Cement AG
 
 Holding Company                                 Cementrum I.B.V
 
 Names of other related parties with whom 
 transactions
 have taken place during the year:
 
 Fellow Subsidiaries  HeidelbergCement Technology Center
 
                      Scancemlnternational Ans
 
                      HeidelbergCement Asia Pte Ltd
 
                      Cochin Cements Limited
 
                      HC Fuels Limited
 
                      PT Indocement Tunggal Prakarsa Tbk
 
                      HC Trading Malta Limited
 
 
 5. The Company has taken various residential premises, office premises
 and warehouses under operating lease agreements. These are generally
 cancellable and are renewable by mutual consent on mutually agreed
 terms except for one office premises which is taken on a
 non-cancellable lease. The Company has recognized Rs. 209.60 lacs
 (Previous year: Rs. 219.03 lacs) in respect of cancellable operating
 leases and Rs. 34.07 lacs (Previous year: Rs. 36.56 lacs) in respect of
 non-cancellable operating leases.
 
 6.  CAPITAL COMMITMENTS
 
 Estimated amount of contracts remaining to be executed on capital
 account and not provided for (net of advances) Rs. 84,109.97 lacs
 (Previous year: Rs. 5,135.52 lacs).
 
 7.  CONTINGENCIES
 
 (a) Contingent Liabilities not provided for        (Rs. in Lacs)
 
 Particulars                   December 31, 2010   December 31, 2009
 
 A. Disputed Statutory 
 claims / levies:
 
 Excise Duty / Service Tax           636.35            270.98
 
 Sales Tax/ Trade Tax              8,565.64          7,657.25
 
 Entry Tax                           605.18            593.97
 
 Differential Royalty on          13,999.51         12,098.38
 Limestone
 
 B. Claims against the Company       132.35            248.81
 not acknowledged as Debts
 
 Claims by various Suppliers         786.80            532.77
 of goods and Services
 
 Electricity charges                 250.71            593.51
 
 Claims by customers and others
 
 C. Show cause notices for levy       
 
 Excise Duty / Service Tax           508.80            649.76 
             
                                      54.00             54.00
 Sales Tax
  
 In respect of above cases based on the favorable decisions in similar
 cases/ legal opinions taken by the Company/ discussions with the
 solicitors etc., the management is of the opinion that it is possible,
 but not probable, that the action will succeed and accordingly no
 provision for any liability has been made in these financial
 statements.
 
 8. During the current year, the Company has exercised call option on
 May 11,2010 to redeem 9% Cumulative Redeemable Preference Shares of Rs.
 100 each aggregating to Rs. 1,349.34 lacs. The accumulated dividend
 amounting to Rs. 414.57 lacs, which includes dividend Rs. 370.98 lacs
 for the period December 12, 2006 to December 31,2009 and Rs. 43.59 lacs
 for the period January 1, 2010 to May 11, 2010 (being the date of
 redemption), has also been paid on such redemption alongwith the
 redemption proceeds.
 
 9. Excise duty on sales amounting to Rs. 11,983.21 lacs (Previous Year
 Rs. 10,384.63 lacs) has been reduced from sales and increase in the
 excise duty on closing inventories amounting to Rs. 129.29 lacs
 (Previous Year Rs. 25.95 lacs) has been considered as an expense in the
 Profit & Loss account.
 
 10. Gratuity and other employment benefit plans
 
 The Company has three post employment funded plans, namely Gratuity,
 Superannuation and Provident Fund.  Gratuity being administered by a
 Trust is computed as 15 days salary, for every completed year of
 service or part thereof in excess of 6 months and is payable on
 retirement/termination/resignation. The benefit vests on the employee
 completing 5 years of service. The Gratuity plan for the Company is a
 defined benefit scheme where annual contributions as demanded by the
 insurer are deposited to a Gratuity Trust Fund established to provide
 gratuity benefits. The Trust Fund has taken a Scheme of Insurance,
 whereby these contributions are transferred to the insurer. The Company
 makes provision of such gratuity asset/ liability in the books of
 accounts on the basis of actuarial valuation as per the Projected unit
 credit method. Plan assets also include investments and bank balances
 used to deposit premiums until due to the insurance company.
 
 Retirement benefits in the form of Superannuation Fund (being
 administered by Trusts) are funded 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.
 
 The Provident Fund being administered by a Trust is a defined benefit
 scheme whereby the Company deposits an amount determined as a fixed
 percentage of basic pay to the fund every month. The benefit vests upon
 commencement of employment. The interest credited to the accounts of
 the employees is adjusted on an annual basis to confirm to the interest
 rate declared by the Government for the Employees Provident Fund. The
 Guidance Note on implementing AS- 15, Employee Benefits (Revised 2005)
 issued by the Accounting Standard Board (ASB) states that provident
 funds set up by employers, which requires interest shortfall to be met
 by the employer, needs to be treated as defined benefit plan.  Based on
 certificate issued by the Actuary, there is no deficit in the fund.
 
 The following tables summarize the components of net benefit expense
 recognised in the Profit and Loss Account and the amounts recognised in
 the balance sheet for the Gratuity.
 
 11. Previous Year Comparatives
 
 Previous years figures have been regrouped where necessary to confirm
 to this years classification.