(1) Government Grants
 
 Grants of Capital nature and related to specific Fixed Assets are
 deducted from gross value of assets. Other grants of Capital nature are
 credited to Capital Reserve. Grant related to revenue are recognised in
 the Profit and Loss Account on a systematic basis to match them with
 related costs.
 
 2 (a) Radial car tyre project with 80 MT/day capacity at Balasore and
 further expansion of radial truck tyre by 85 MT/day at Uttarakhand
 taken up during the year 2009-10 are expected to commence commercial
 production by the end of 2011- 2012.
 
 ( b) The time frame for completion of expansion of Vasavadatta cement
 unit of the Company (clinker production capacity of 1.71 million
 MT/year together with captive power plant of 18 MW capacity at an
 estimated cost of Rs.925.00 crores and related grinding facility of 2.5
 million MT cement per annum to be situated at Solapur in the state of
 Maharashtra at estimated cost of Rs. 200.00 crores) is being extended
 beyond 2012-13.
 
 3 (a) The Company intends to hive off its Hindusthan Heavy Chemicals
 unit (the Unit) as reflected in the Board Resolution of 31st January,
 2006 and later on consented by the shareholders by postal ballot of
 24th March, 2006. The Unit is not significant in terms of the Companys
 total assets/liabilities/revenue/expenses/cash flows. Pending disposal
 of the Unit, the Unit is in operation and results thereof, have been
 reflected in these Accounts. The Company had to declare suspension of
 work at the unit effective 8th December, 2010 in consequence of illegal
 strike/activities by workmen.
 
 (b) The Companys Spun Pipes and Foundries Unit is under suspension of
 work effective 2nd May, 2008.
 
                                   31st March, 2011   31st March, 2010
                                         Rs.                 Rs. 
 
 4 Contingent Liabilities:
 
 (a)  Guarantees given -
 
 (i)  to excise authorities            11,73,223       11,73,223
 
 (ii) by Banks on behalf of the
      Company                       64,62,00,803    70,38,54,755
 
 (excluding relating to joint venture referred to in note 15 below)
 
 (b) Claims against the Company not acknowledged as debts :
 
 Rates, Taxes, Duties etc. demanded 
 by various Authorities           1,37,76,47,666  1,20,94,00,083
 
 Amount demanded by Provident Fund     86,86,000       86,86,000
 
 Authorities which is sub judice
 
                                  1,38,63,33,666  1,21,80,86,083
 
 (c) Rates, Taxes, Duties etc.      30,29,87,802     8,14,89,255
 
 (d) Amount payable in connection 
     with reorganisation of the
     Company in earlier year         3,59,00,565     3,71,22,132
 
 13 Miscellaneous expenses (Schedule 15) include Rs. 21,05,881 (Net)
 (2009-10 Rs. 10,91,48,160) excise duty related to the difference
 between the closing stock and opening stock.
 
 14 A.  In keeping with the Guidance on implementing Accounting Standard
 (AS) 15 on Employee Benefits issued by the Accounting
 
 Standards Board of the Institute of Chartered Accountants of India (ASB
 Guidance), employer-established provident fund trusts are treated as
 Defined Benefit Plans since the Company is obligated to meet interest
 shortfall, if any, with respect to covered employees. According to the
 management, in consultation with Actuary, actuarial valuation cannot be
 applied to reliably measure provident fund liabilities in absence of
 guidance from Actuarial Society of India. Accordingly, the Company is
 currently not in a position to provide other related disclosures as
 required by the aforesaid AS 15 read with the ASB Guidance, however,
 having regard to the position of the Fund (for covered employees) and
 confirmation from the Trustees of such Fund there is no shortfall as
 at the year end.
 
 14 B. In keeping with the Companys gratuity scheme (a defined benefit
 plan), eligible employees are entitled to gratuity benefit (at one half
 months eligible salary for each completed year of service) on
 retirement/death/incapacitation/termination. Also refer Note 1 (j) for
 accounting policy relating to gratuity. Following are the further
 particulars with respect to gratuity.
 
 17.1 7.30% secured redeemable non-convertible debentures aggregating
 Rs. 1,00,00,00,000 (31.03.2010 Rs. - 1,00,00,00,000), privately placed
 (allotment date -17th November, 2009) have been redeemed at par during
 the year. On the aforesaid redemption, Rs. 25,00,00,000 being 25% of
 the aforesaid value of debentures in Debenture Redemption Reserve, has
 been transferred from Debenture Redemption Reserve to the Profit and
 Loss Account.
 
 17.2 Short-term loans from others (Schedule 4) include :-
 
 (a) Zero coupon unsecured redeemable non-convertible debentures
 aggregating Rs. 1,10,00,00,000 (31.03.2010 - Rs. 1,10,00,00,000),
 privately placed (allotment date 15th March, 2010) are due for
 redemption at par at the end of 396 days from the date of allotment.
 
 (b) 7.75% unsecured redeemable non convertible debentures aggregating
 Rs. 50,00,00,000 (31.03.2010 - Rs. 50,00,00,000) privately placed
 (allotment date -19th March, 2010) are due for redemption at par on 5th
 April,2011
 
 (c) 7 % unsecured redeemable non convertible debentures aggregating Rs.
 1,00,00,00,000 privately placed (allotment date -17th May, 2010) are
 due for redemption at par at the end of 396 days from the date of
 allotment.
 
 18 Pursuant to the Announcement on Accounting for Derivatives issued by
 the Institute of Chartered Accountants of India in March, 2008, the
 Company has accounted for during the year net loss amounting to
 Rs.5,10,63,967 (31.03.10 - Rs. 1,43,41,747) in respect of outstanding
 derivative contracts at the Balance Sheet date by marking them to
 market as indicated in Note 1 (g) above and the resultant short
 liability of Rs. 3,67,22,220 net of realised gain(net) of Rs. 53,28,800
 during the year arising from derivative contracts are provided for and
 included in Miscellaneous Expenses under Schedule 15 to accounts. In
 2009-10, the aforesaid mark to market loss along with realised Gain
 (net) of Rs. 15,05,46,781 was included in Miscellaneous Income under
 Schedule 13 to accounts.
 
 19 a) Rent expenditure (Schedule 15) includes lease payments of Rs.
 85,15,640 (2009-10 - Rs. 18,19,595) relating to non-cancellable
 operating lease. The leasing arrangement is for three to nine years and
 is in respect of office premises. The significant leasing arrangement
 inter alia includes option for renewal.
 
 (i) not later than one year - Rs. 1,25,93,640 (2009-10 - Rs. 25,68,840)
 
 (ii) later than one year but not later than five years - Rs.
 4,14,16,105 (2009-10 - Rs. 33,18,085)
 
 (iii) later than five years - Rs. 4,12,15,264 (2009-10 - Nil)
 
 20 Information pursuant to the provisions of paragraphs 3, 4C and 4D of
 Part II of Schedule VI to the Companies Act, 1956 is given in Schedule
 18, which forms an integral part of this Schedule.
 
 25 Certain records/documents pertaining to production, raw materials,
 purchase records etc. of the Companys Assam Cotton Mills Unit were
 seized by the Excise Authorities and are presently not available with
 the Company.
 
 26 Previous years figures have been regrouped or rearranged where
 considered necessary.