a) Accounting Convention
 
 The financial statements are prepared under historical cost convention
 (except for certain fixed assets which are revalued), on a going
 concern basis and in accordance with applicable accounting standards
 prescribed under the Companies (Accounting Standards) Rules, 2006.
 
 b) Use of Estimates
 
 The preparation of financial statements requires management to make
 certain estimates and assumptions that affect the amount reported in
 the financial statements and notes thereto. Differences between actual
 results and estimates are recognised in the period in which they
 materialise
 
 c) Fixed Assets
 
 Land, Buildings, Plant and Machinery relating to Cement and Refractory
 Works acquired/installed upto 31.12.81 were revalued as at 31.12.85.
 All other fixed assets are shown at cost (net of cenvat). Borrowing
 costs attributable to the acquisition of qualifying assets and all
 significant costs incidental to the acquisition of assets are
 capitalised.
 
 d) Depreciation
 
 Depreciation on Plant and Machinery added in Cement & Refractory after
 31.12.81 is provided on straight line method and depreciation on all
 other assets including Kapilas Cement Works and Clinkerisation Unit at
 Rajgangpur (Line-II) is provided on reducing balance method.
 Depreciation has been calculated in the manner and at the rates
 specified in Schedule XIV to the Companies Act, 1956.
 
 e) Investments
 
 Long term Investments are valued at cost. Provision for diminution in
 value is made, if in the opinion of the management, such a decline is
 considered other than temporary. Current Investments are valued at Cost
 or Fair Value which ever is lower.
 
 f) Inventories
 
 Stocks of finished and partly finished products are valued at lower of
 cost or net realisable value and for this purpose, cost is determined
 on absorption costing method. Cost of finished goods includes excise
 duty. Raw Materials, other inputs, stores and spares are valued at
 lower of cost (net of cenvat) or net realisable value after providing
 for obsolescence. Cost is determined on FIFO / Weighted Average Basis.
 
 g) Revenue Recognition and Accounting for Sales
 
 Revenue from domestic sale of goods is recognised when significant
 risks and rewards are transferred to the customers. Export sales are
 accounted for on the basis of date of bill of lading. Sales are net of
 trade discount and sales tax but inclusive of excise duty. Bonus or
 penalty linked to operating efficiency of products, where applicable,
 is accounted for upon crystalization. Interest income is recognised on
 time proportionate basis. Dividend income is accounted for, when the
 right to receive the same is established.
 
 h) Treatment of Employee Benefits
 
 The Company makes regular contributions to duly constituted Funds set
 up for Provident Fund, Family Pension, Gratuity and Superannuation
 which are charged to revenue. Contribution to gratuity fund and
 provision for leave encashment are made on the basis of actuarial
 valuation.
 
 i) Research and Development
 
 Revenue expenses are charged off in the year in which it is incurred
 under the natural heads of account. Capital expenditure, when incurred
 is added to the cost of fixed assets.
 
 j) Foreign Currency Transactions
 
 Foreign currency transactions are recorded at exchange rate prevailing
 on the date of transaction/realisation. Current assets/liabilities are
 restated at rates prevailing at the year end and resultant exchange
 difference are recognised in the Profit and Loss Account. In case of
 forward exchange contracts, the premium or discount arising at the
 inception of such contracts is amortised over the life of the contract
 as well as the exchange difference on such contracts i.e., differences
 between the exchange rates at the reporting /settlement date and the
 exchange rate on the date of inception/last reporting date, is
 recognised in the Profit & Loss Account. Non-monetary items denominated
 in foreign currency are valued at the exchange rate prevailing on the
 date of transaction.
 
 k) Taxation
 
 Current Tax provision is made on the assessable income at the tax rate
 applicable to the relevant Assessment Year.  The Deferred tax asset and
 Deferred tax liability are calculated by applying tax rate and tax laws
 that have been enacted or substantively enacted by the balance sheet
 date. Deferred tax assets arising on account of ''Timing Differences''
 are recognised, only to the extent there is a reasonable certainty of
 its realisation.
 
 l) Impairment of Assets
 
 At each balance sheet date, the Company assesses whether there is any
 indication that an asset may be impaired.  If any such indication
 exists, the Company estimates the recoverable amount. If the carrying
 amount of the assets exceeds its recoverable amount, an impairment loss
 is recognised in the profit and loss account to the extent the carrying
 amount exceeds the recoverable amount.
 
 m) Provisions and Contingencies
 
 The Company creates a provision when there is a present obligation as a
 result of past event that probably requires an outflow of resources and
 a reliable estimate can be made of the amount of obligation. A
 disclosure of contingent liability is made when there is a possible
 obligation or a present obligation that will probably not require
 outflow of resources or where a reliable estimate of the obligation can
 not be made.