1.  Corporate information
 
 Premier Explosives Limited is a manufacturer of explosives having its
 registered office at Secunderabad, Andhra Pradesh, India. The
 company''s main manufacturing and research and development facilities
 are located at Peddakandukuru village in Nalgonda district of Andhra
 Pradesh with other manufacturing units located in Madhya Pradesh,
 Maharashtra and Tamilnadu. Listed on Bombay Stock Exchange, Premier is
 an ISO 9001 company having accreditation of National Accreditation
 Board for Testing & Calibration Laboratories (NABL) and recognition of
 Department of Scientific & Industrial Research (DSIR).
 
 2.  Presentation and disclosure of financial statements
 
 During the year ended 31st March 2012, the Revised Schedule VI notified
 under the Companies Act 1956, has become applicable to the company, for
 preparation and presentation of its financial statements. The adoption
 of Revised Schedule VI does not impact recognition and measurement
 principles followed for preparation of financial statements. However,
 it has significant impact on presentation and disclosures made in the
 financial statements. The company has also reclassified the previous
 year figures in accordance with the requirements applicable in the
 current year.
 
 3.  Contingent liabilities and commitments
 
                                                           (Rs. in lakhs) 
                                                   As at            As at
 
 Particulars                            31st March, 2012 31st March, 2011
 
 Contingent liabilities
 
 On account of guarantees issued by 
 the banks on behalf of the company             1,805.80         2,656.13
 
 Sales tax demands disputed by the 
 company pending in appeal                        151.31           151.31
 
 Guarantees issued by the company 
 on behalf of associate company                   171.91           253.91
 
 Commitments
 
 Estimated amount of contracts 
 remaining to be executed on capital 
 account and not provided for 
 (net of advances)                                345.44           178.80
 
 
 4.  Confirmation letters have been issued in respect of trade
 receivables and other receivables, loans and advances and trade
 payables and other payables of the company but not responded to in some
 cases. Hence, unconfirmed balances are subject to reconciliation and
 consequent adjustments, if any, would be determined / made on receipt
 of confirmation. However, in the opinion of the Board, all assets other
 than fixed assets and non- current investments have a realizable value
 in the ordinary course of business which is not different from the
 amount at which it is stated.
 
 5.  Donations include Rs.0.50 lakh paid to Communist Party (Marxist).
 (Previous year Rs.1.00 lakh paid to Telangana Rashtra Samithi.)
 
 6.  Excise duty
 
 Excise duty on sales for the year has been disclosed as reduction from
 turnover. Excise duty relating to the difference between closing stock
 and opening stock has been included in Note no. 25 Changes in
 inventories of finished goods, work-in-progress and scrap.
 
 7.  Segment reporting
 
 In accordance with Accounting Standard - 17 Segment Reporting issued
 under the Companies (Accounting Standard) Rules 2006, the Company''s
 business consists of two reportable segments i.e., Explosives &
 Accessories and Wind power.
 
 Segment information has been prepared in conformity with the accounting
 policies adopted for preparing and presenting the financial statements
 of the company.
 
 As part of secondary reporting, revenues are attributed to geographical
 markets based on the location of the customers.
 
 Operating lease expenses
 
 The company has various operating leases for equipment, office
 facilities and vehicles that are renewable on a periodic basis, by
 mutual consent, on mutually agreeable terms and cancellable at its
 option. Rental expenses on operating leases recognised in the Statement
 of profit and loss for the year is Rs.1.61 lakhs (previous year:
 Rs.3.46 lakhs)
 
 8.  Provision for taxation
 
 (i) Provision for current tax has been made based on an estimate of
 assessable income determined by the company under the Income Tax Act,
 1961.
 
 (ii) The company estimates the deferred tax charge/(credit) using the
 applicable rate of taxation based on the impact of timing differences
 between financial statements and estimated taxable income for the
 current year.