a Term Loans from the Banks and Financial Institutions viz. Axis Bank
 Ltd, Canara Bank, Central Bank of India, Corporation Bank, Indian
 Renewable Energy Development Agency Ltd (IREDA), Oriental Bank of
 Commerce, State Bank of Hyderabad, State Bank of India and State Bank
 of Mysore are secured by a pari passu first charge on all movable and
 immovable properties of the Company and second charge on current assets
 of the Company (both present and future) except receivables of Energy
 Division.
 
 b.  Term Loans availed from all Banks and Financial Institutions except
 Axis Bank are repayable in Quarterly Installments of Rs 1140 lakhs each.
 
 c.  Term Loans availed from Axis Bank are repayable in Monthly
 Installment of Rs 57 lakhs each.
 
 d.  Term Loans carries interest @ 9% to 14.50% p.a.
 
 e.  Vehicle and Equipment Loans from various Banks are secured by
 Hypothecation of respective assets financed, for a tenure of 35 to 45
 months and carries Interest @ 9% to 11% p.a.
 
 f.  Represents 8 years Interest free Sales Tax Deferment Loan received
 from Government of Andhra Pradesh. Repayment commences from January 31,
 2014 based on the deferment availed in the corresponding year.
 
 g.  No Default in repayment of any loan or interest thereon.
 
 a.  Deposits from Dealers / Stockiest represents amounts collected from
 Dealers / Stockiest / Agents as collateral at the time of granting the
 dealership to sell the products of the Company which is repayable on
 cancellation of the said dealership.  These deposits attract interest @
 6% p.a.
 
 b.  Public Deposits aggregating to Rs 2,713.23 lakhs (Previous year Rs
 1,907 lakhs) is repayable within one year and Rs 173.80 lakhs (Previous
 Year Rs 187.65 lakhs) is repayable within two years.
 
 Cash credit Loans from Banks viz. Axis Bank Ltd, IDBI Bank Ltd and
 State Bank of Hyderabad are secured by pari passu first charge on
 current assets of the Company excluding receivables of Energy Division
 (both present & future) and second charge on fixed assets of the
 company and are guaranteed by four promoter directors in their personal
 capacity. The cash credit is repayable on demand and carries interest @
 13% to 14.5% p.a.
 
 Based on the information available with the Company, amount of dues to
 Micro, Small and Medium Enterprises outstanding for more than 45 days
 as at 31st March 2012 is Rs. Nil (Previous Year: Rs. Nil)
 
 Note: Investor Education and Protection Fund will be credited by this
 amounts as and when due.
 
 Note: As per Andhra Pradesh State Industrial Policy 2005-10, Amounts of
 incentives from Industries Department receivable for the year amounting
 to Rs.793.12 lakhs (Previous Year Rs. 411.92 lakhs) is deducted from
 Taxes on Sales.
 
 Note: As per Andhra Pradesh State Industrial Policy 2005-10, Amounts of
 incentives from Industries Department receivable for the year amounting
 to Rs. 388.51 lakhs (Previous Year Rs. 80.69 lakhs) is deducted from
 the Cost of Power.
 
 The company operates in five segments namely, Cement, Boards, Prefab,
 Energy and RMC Divisions. Segments are identified and reported as
 required in AS 17 Segment Accounting Policies:
 
 In addition to the significant accounting policies applicable to the
 business, the accounting policies in relation to segment accounting are
 as under:
 
 a) Segment Assets and Liabilities:
 
 Segment assets include all operating assets used by the segment and
 consist principally of fixed assets, inventories, sundry debtors and
 loans & advances less current liabilities. Segment assets and
 liabilities do not include investments, cash and bank balances, inter
 corporate deposits, reserves and surplus, borrowings, provision for
 contingencies and income tax (both current and deferred).
 
 b) Segment Revenue and Expenses:
 
 Segment revenue and expenses are taken directly as attributable to the
 segment. It does not include interest income on inter-corporate
 deposits, profit on sale of investments, interest expense, provision
 for contingencies and income tax.
 
 1.1 Contingent Liabilities                             Rs- in Lakhs
 
                                 31-Mar-12              31-Mar-11
 
                           Disputed   Paid Under   Disputed   Paid Under
                            Amount    Protest         Amount     Protest
 
 Demand by Sales tax 
 authorities -Interest 
 on HSD Oil
 
 used in Tippers for 
 transportation of lime 
 stone (Note ''a'')        4.26        -             4.26        -
 
 Demand by Sales tax 
 authorities-Interest on 
 delayed                    16.88       4.00          16.88      4.00
 
 payment (Note ''b'')
 
 Demand by Sales tax 
 authorities for the 
 year 1997-98                9.81       4.90           9.81      4.90
 
 - on revised assessment 
 (Note ''c'')
 
 Demand by Sales tax 
 authorities for the 
 year 2004-05               14.92         -           14.92        -
 
 - Rate of tax on erection 
 of prefab structures on 
 CST. (Note ''d'')
 
 Claim of Input Tax on 
 purchase of Coal not 
 accepted by                  -           -            14.42       -
 
 Sales Tax Authorities , 
 the appeal was decided 
 in Company''s favour.
 
 Issues pertaining to F 
 forms non submission, 
 Entry Tax                    -           -             3.12       -
 
 on CST purchases which 
 were decided in company''s 
 favour
 
 Demand of Central Excise 
 Department denying 
 benefit of                  744.50       -           279.52       -
 
 Cenvat credit on capital 
 goods (Note ''e'')
 
 Demand of Central Excise 
 Department denying benefit  100.72        -           83.83       -
 
 of Cenvat credit on capital 
 goods (Note ''f'')
 
 Excise department claimed
  return refund of Excess     29.22        -           29.22       -
 
 Excise duty paid by the 
 Company (Note ''g'')
 
 Demand of Central Excise 
 Department denying 
 benefit of                   17.77        -           17.77       -
 
 Cenvat credit on capital 
 goods (Note ''h'')
 
 Demand of Central Excise 
 Department denying benefit   11.18        -           11.18       -
 
 of Cenvat credit on cement 
 transferred to Kondapalli 
 unit from
 Martially unit for dispatch 
 in a railway rake (Note 
 ''i'')
 
 Return of Refund of 
 Additional duty paid under 
 protest made                  18.41       -             -
 
 to the Company , claimed by 
 Excise department. (Note
  ''j'')
 
 Miscellaneous Issues pending 
 with Excise department          8.52      -             -
 
 Demand of NALA Tax pertaining 
 to Non Agricultural Tax        43.56      -           43.56        -
 
 in Mining Areas by the state 
 government ( Note ''k'')
 
 Service Tax on outward 
 transport & Insurance           2.17      -           15.10        -
 
 Demand raised for payment 
 of permit fee by the forest   105.39      -           52.36        -
 
 department for mining and 
 transportation of Lime 
 Stone ( Note ''l'')
 
 Counter Guarantees given 
 to Banks / FIs                342.61      -          245.51        -
 
 a.  Sales Tax Authorities treated the usage of HSD oil on Hired tippers
 on cost recovery basis for transport of Lime Stone From Mines to
 Factory, on the presumption that it is a sale. The company filed an
 appeal before the Sales Tax Appellate Tribunal. The matter is pending
 before STAT.
 
 b.  In the year 1999-00, Sales Tax Authorities raised a demand for
 Rs.16.88 lakhs as penalty on delayed payment. The Company has preferred
 an Appeal before the Sales Tax Appellate Tribunal. The company has paid
 an amount of Rs. 4.00 lakhs and obtained a stay from the
 Commissioner of Commercial Taxes
 
 c.  Demand raised by the Sales Tax Authorities on revised assessment
 for the year 1997-98 for a sum of Rs. 9.81 Lakhs levying tax on regular
 rate when the turnover was under works contract. Obtained a stay on
 payment after payment of 50% of Sales Tax demanded. Appeal is pending
 before STAT.
 
 d.  Sales Tax Authorities disputed the rate of tax for interstate
 supplies of prefab structures in the year 2004-05 and raised a demand
 for a sum of Rs. 14.92 Lakhs. Company preferred an appeal before STAT
 and is pending.
 
 e.  The Excise Department has raised a demand of Rs.744.50 lakhs
 disallowing the Cenvat credit on Steel items used in construction of
 plant structure at both Martially and Kondapalli. Company has
 preferred an appeal before CESTAT and is pending.
 
 f.  The Excise Department has raised a demand of Rs.100.72 lakhs
 disallowing the Cenvat credit on Steel items used in construction of
 plant structure at both Mattapally and Kondapalli. Company has
 preferred an appeal before Commissioner.
 
 g.  The Excise Department has claimed return of the refund of Rs. 29.22
 lakhs paid to the Company on their appeal decided in their favor by
 the Commissioner (Appeals). The Company preferred an appeal before the
 Honourable High Court.
 
 h.  Excise department has raised a demand of Rs. 17.77 lakhs denying
 the cenvat credit on usage of Cement, Steel, M.S.  Plates, M.S.Flats,
 M.S.Angles, M.S.Channels M.S.Coils, Steel Tubes, Pipes, beams,
 Plates/Sheets, Rebars, Conductors in construction of civil structures
 like Silo, Dump Hopper etc. The matter is contested and pending befoe
 the Appellate Authority.
 
 i.  Excise department has raised a demand of Rs. 11.18 lakhs denying
 the cenvat credit taken on transfer of cement from Mattapally unit to
 Kondapalli unit for dispatch by rail. The Company preferred an appeal.
 
 j. The Excise Department has issued a notice to return the refund of
 Additional Excise duty paid under protest, amounting to Rs. 18.41 lakhs
 paid to the Company. Company has filed a reply to the notice.
 
 k. The State Government has issued a notice claiming NALA Tax of Rs.
 43.56 lakhs regarding Non Agricultural Tax on Mining areas. On dismissal
 of our appeal by the Joint Collector of Nalgonda, Company filed a writ
 petition before the Honorable High Court of Andhra Pradesh. High Court
 has granted an interim stay on the total amount demanded.
 
 l.  Forest department demanded payment of permit fee for Lime Stone
 mining & Transportation @ 10/- per ton. Company filed a writ petition
 before the Honorable High Court of Andhra Pradesh. High Court has
 granted an interim stay subject to payment of 1/3rd of the demanded
 fee.
 
 Actuarial assumptions
 
 a) Mortality table (LIC) 1994-96 (ultimate)
 
 b) Discounting rate - 8.65 %
 
 c) Expected average remaining working lives of employees-13 Years
 
 d) Rate of escalation in salary - 6 %
 
 1.2 As required by Accounting Standards AS 18, the related parties''
 disclosure issued by the Institute of Chartered Accountants of India is
 as follows:
 
 a. List of related parties and relationships
 
 i.  Enterprises controlled by Key Management Personnel / Relatives of
 Key Management Personnel
 
 1.  NCL Alltek & Seccolor Limited
 
 2.  NCL Homes Limited
 
 3.  Kakatiya Industries (P) Limited
 
 4.  Nagarjuna Cerachem (P) Limited
 
 5.  NCL Wintech India Limited
 
 6.  Khandaleru Power Company Limited
 
 ii.  Key Management Personnel : Mr. K. Ravi, Managing Director