1 Nature of Operations
 
 The Company is engaged in the production and distribution of Fibre
 Cement Sheets, Aerocon Panels, AAC Blocks, Material Handling and
 Processing Plant and Equipment and Thermal Insulation Products
 (Refractories). The Company presently has manufacturing facilities at
 Hyderabad, Faridabad, Jasidih, Dharuhera, Thimmapur, Vijayawada,
 Chennai, Thrissur, Wada , Sathariya Balasore and Golan. During the year
 the Company has commenced generating power by setting up Wind Turbine
 Generator at Vandhiya village in Gujarat.
 
 2.  Segment Information
 
 Business Segments
 
 As of March 31, 2011 the Company has organised its operations into two
 major businesses: Building Products and Thermal Insulation Products
 (Refractories). A description of the types of products and services
 provided by each reportable business segment is as follows:
 
 Building Products: The Company manufactures and markets fibre cement
 sheets, Aerocon Panels and AAC blocks.  The said products are used in
 construction activity.
 
 Thermal Insulation Products (Refractories): The Company manufactures
 and markets insulation products used in Cement, Fertilizers and Power
 Sector in the Kilns, furnaces and boilers.
 
 Geographical Segments
 
 The analysis of geographical segments is based on the location of the
 customers i.e. domestic and overseas.
 
 3.  Related Party Disclosure
 
 No amount has been provided as doubtful debt or advance written off or
 written back in the year in respect of debts due from/to above related
 parties.
 
 Name of related parties
 
 Joint Venture             Supercor Industries Limited, Nigeria.
 
 Key Management Personnel  Mr. Abhaya Shankar (Managing Director)
 
 4.  Interest in Joint Venture Company
 
 The Companys share of the assets, liabilities, income and expenses of
 the jointly controlled entity as at and for the years ended December
 31, 2010 and 2009 are as follows:
 
 5.  Contingent Liabilities (not provided for) in respect of :
 
                                                         (Rs. In Lacs) 
                                                 2010-11       2009-10
 
 a) Demand raised by the Income Tax 
 authorities, being disputed by the Company       592.41        289.26
 
 b) Demands raised by Sales tax authorities,
 being disputed by the Company.                  1654.36       1155.83
 
 c) Demands (Including penalties) 
 raised by Excise authorities,being disputed 
 by the Company.                                 1139.44       1012.80
                       
 d) Appeal filed by the Company before 
 the High Court of Judicature of Andhra Pradesh 
 against the decision of appeal in favour of the
 Income tax department pertaining to 
 wealth tax matter.                                56.98         56.98
 
 e) Pending cases with Income Tax Appellate 
 Authorities where Income Tax Department has 
 preferred appeals.                            Liability     Liability
                                                     not           not
                                           ascertainable ascertainable
 
 f) Demand for Property Tax, being
  disputed by the Company                         401.68        401.68
 
 g) Other claims against the Company not 
 acknowledged as debts.                           246.00        182.60
 
 Based on favourable decisions in similar cases, legal opinion taken by
 the Company, discussions with the solicitors, etc., the Company
 believes that there is fair chance of decisions in its favour in
 respect of all the items listed above and hence no provision has been
 considered necessary against the same.
 
 6.  Employee Benefit Plans (AS 15 revised)
 
 The Employees Gratuity Fund Scheme managed by a trust is a defined
 benefit gratuity plan which is administered through Group Gratuity
 Scheme with Life Insurance Corporation of India. Every employee who has
 completed five years or more of service gets a gratuity on departure at
 15 days salary ( last drawn salary) for each completed year of service
 or part thereof in excess of six months.
 
 The following tables summaries the components of net benefit expense
 recognised in the profit and loss account, the funded/ non-funded
 status and amount recognised in the balance sheet for the gratuity
 plan:
 
 7.  a) Interest free sales tax loan from a financial institution is
 secured by way of first charge on the entire assets of the Sathariya
 Unit of the Company, both present and future.
 
 b) Cash Credit facilities from banks are secured by hypothecation of
 inventories and book debts and are further secured by second equitable
 mortgage of the Companys immovable properties and hypothecation of
 other fixed assets, both present and future, other than assets as
 disclosed in (a) above.
 
 8. Revenue and Capital expenditure debited to respective heads of
 account include expenditure incurred on Research and Development during
 the year amounting to Rs. 155.62 lacs and Rs. 8.40 lacs respectively
 (Previous Year Rs. 108.10 lacs and Rs. Nil respectively).
 
 9. Provision for employee related other costs and loss on onerous
 contracts
 
 a) The wage agreements at three of the manufacturing locations of the
 Company are pending as at March, 31 2011. The provision for wage
 arrears have been made on the basis of expected outflows. It is
 expected that agreement will be entered in next year and arrears would
 be paid based on the agreement.
 
 b) The Company is executing one supply and erection contract entered
 with a party. The estimated unavoidable future cost of meeting the
 obligations under the contract exceed the expected future economic
 benefits to be received under it by Rs.103.73 lacs (Previous Year Rs.
 154.63 lacs). Accordingly, provision for loss on onerous contract has
 been made for Rs.103.73 lacs. The contract is expected to be completed
 in next year.
 
 10.  In accordance with Explanation below para 10 of Notified
 Accounting Standard 9: Revenue Recognition, excise duty on sales
 amounting to Rs. 7760.69 lacs (Previous Year Rs. 5285.50 Lacs) has been
 reduced from sales in profit and loss account and expenditure during
 construction period. Excise duty income on decrease in stocks amounting
 to Rs.  204.35 lacs (Previous Year excise duty expense of Rs. 732.92
 lacs) has been considered in Schedule 17 of the financial statements
 and excise duty on closing stock out of trial run production amounting
 to Rs. 13.50 lacs (Previous Year Rs. 29.97 lacs) has been debited to
 expenditure during construction period.
 
 11.  Previous year figures have been regrouped/ rearranged wherever
 necessary to conform with current years classification.