1.1 Basis of Preparation
 
 The financial statements have been prepared to comply in all material
 aspects with the Notified Accounting Standards by Companies (Accounting
 Standards) Rules, 2006 and the relevant provisions of the Companies
 Act, 1956.
 
 1.2 Method of Accounting and Revenue Recognition
 
 Accounts are maintained on an accrual basis and at historical cost.
 
 Sales are recognised on passing of risks and rewards attached to the
 goods. Sales include excise duty but do not include Value Added Tax
 (VAT) and Central Sales Tax (CST).
 
 Dividend income is recognised for when the right to receive is
 established. Interest income is recognised on a time proportion basis
 taking into account the amount outstanding and the rate applicable on
 Yield To Maturity (YTM) basis.
 
 1.3 Use of Estimates
 
 The preparation of financial statements in conformity with Indian
 Generally Accepted Accounting Principles (GAAP) requires management to
 make estimates and assumptions that affect the reported amounts of
 assets and liabilities and disclosures relating to contingent
 liabilities as at the date of financial statements and reported amounts
 of revenues and expenses during the reporting period. Actual results
 could differ from these estimates. Differences between the actual
 result and estimates are recognised in periods in which the results are
 known/materialised.
 
 1.4 Fixed Assets
 
 Fixed assets are stated at cost less depreciation/amortisation and
 impairment loss, if any. The cost is inclusive of interest and
 incidental expenses incurred during construction period and is net of
 cenvat credit availed.
 
 The fixed assets are tested for impairment if there is any indication
 of impairment, based on internal/ external factors. Impairment loss, if
 any, is provided by a charge to Profit and Loss Statement.
 
 Machinery spares, which are specific to a particular machinery and
 whose use is expected to be irregular, are capitalised and depreciated
 over the useful life of the related asset.
 
 Assets acquired under lease are treated as operating/finance lease as
 per the provisions of Accounting Standard - 19 Leases issued by the
 Institute of Chartered Accountants of India.
 
 1.5 Depreciation and Amortisation
 
 i.  Depreciation on additions to/deductions from fixed assets is being
 provided on pro-rata basis from/to the date of acquisition/disposal.
 
 ii Depreciation on foreign exchange differences on borrowings utilised
 for acquisition of assets is provided prospectively over the remaining
 life of the assets.
 
 iii The cost incurred to purchase mining land is bifurcated into cost
 of land and cost of estimated mining reserves for the purpose of
 depreciation. Amortisation of mining reserves is calculated by using
 Unit of Production Method and the same is charged to Profit and Loss
 Statement.
 
 iv Depreciation is provided on straight line method at the rates
 specified in the Schedule XIV to the Companies Act, 1956 except in the
 following cases where the rates are higher than Schedule XIV of the
 Companies Act, 1956.
 
 Cement Division :
 
 a.  For certain vehicles used by employees : 15.25%.
 
 b.  Expenses on mines development are capitalised and are amortised
 over a period of five years from the month of commencement of
 extraction of limestone from that area.
 
 c.  Leasehold land and mining surface rights are amortised from the
 month of commencement of commercial production, over the remaining
 lease period.
 
 a.  Cost of acquisition of leasehold land is amortised over the
 remaining lease period.
 
 b The civil and other costs attributable to the plants/office on leased
 premises are capitalised and are being written off over the unexpired
 period of the lease.
 
 a.  Cost of acquisition of leasehold land is amortised over the period
 of lease.
 
 b.  For certain vehicles used by employees : 15.25%.
 
 c.  Expenses on mines development are capitalised and amortised over a
 period of extraction on the basis of Unit of Production Method.
 
 1.6 Research and Development
 
 Revenue expenditure on research phase is recognised as an expense when
 it is incurred. Expenditure on development phase is capitalised as per
 Accounting Standard - 26.
 
 1.7 Investments
 
 Long Term Investments are carried at cost. Diminution, if any, other
 than temporary, is provided for Current investments are carried at
 lower of cost or fair value.
 
 1.8 Inventories
 
 Inventories are valued at lower of cost and net realisable value. They
 are valued after considering for obsolescence and other losses. The
 cost is worked out on weighted average basis.
 
 1.9 Foreign Currency Transactions
 
 Transactions in foreign currency are accounted at the exchange rate
 prevailing on the date of the transaction.  The exchange differences
 arising on restatement or on settlement are recognised in the Profit
 and Loss Statement.
 
 Forward contracts are entered into for hedging the foreign currency
 risk of the underlying outstanding at the Balance Sheet date. The
 premium or discount on such contracts is amortised as income or expense
 over the life of the contract. Any profit or loss arising on the
 cancellation or renewal of forward contracts is recognised as an income
 or expense for the period. The difference on account of exchange rate
 fluctuation is taken to Profit and Loss Statement.
 
 The Company has availed option provided under paragraph 46A of
 Accounting Standard - 11 : ''The Effects of Changes in Foreign Exchange
 Rates'', vide Notification dated December 29, 2011 issued by MCA.
 Exchange differences arising on principal amount of borrowings are not
 considered as borrowing costs and treated as part of exchange
 difference. Consequently, the exchange differences on long-term foreign
 currency monetary items, which were being recognised in the Profit and
 Loss Statement in the earlier years, are now being dealt with in the
 following manner :
 
 i.  Foreign exchange differences on long term borrowings utilised for
 acquisition of depreciable asset is treated as an adjustment to the
 cost of depreciable asset and the same is depreciated over the balance
 useful life of the asset.
 
 ii.  Foreign exchange differences arising from other long term monetary
 items are accumulated in a Foreign Currency Monetary Item Translation
 Difference Account, and amortised over the balance period of the said
 asset/liability.
 
 1.10 Borrowing Cost
 
 Borrowing costs that are directly attributable to the acquisition or
 production of qualifying assets are capitalised as the cost of the
 respective assets. Other borrowing costs are charged to the Profit and
 Loss Statement in the year in which they are incurred.
 
 1.11 Government Grants
 
 VAT subsidy is accounted on accrual basis, based on the entitlement.
 The said subsidy is considered as a part of sales under Revenue from
 Operations in the Profit and Loss Statement.
 
 1.12 Employee Benefits
 
 Superannuation and ESIC are defined contribution plans. Also Provident
 Fund is treated as defined contribution plan. A contribution is made to
 Regional Provident Fund Commissioner (RPFC) for certain employees and
 in case of other employees covered under the Provident Fund Trust of
 the Company, the management does not expect any material liability on
 account of interest shortfall to be borne by the Company. Gratuity
 benefits are treated as defined benefit plan. Gratuity obligation is
 worked out based on actuarial valuation.
 
 Employees are entitled to carry forward unutilised leave, the liability
 of which is arrived based on an actuarial valuation. Employees are also
 entitled to medical benefit for which premium is paid by Company.  The
 contribution made by the Company for Provident Fund, Superannuation and
 Medical Premium is charged to the Profit and Loss Statement.
 Incremental liability for leave entitlement and gratuity is charged to
 the Profit and Loss Statement.
 
 1.13 Taxes on Income
 
 The Company provides current tax based on the provisions of the Income
 Tax Act applicable to it. Timing differences between book profit and
 taxable profit is accounted as deferred tax. Deferred Tax Asset, if
 any, is recognised considering prudence.
 
 1.14 Provision and Contingent Liabilities
 
 A provision is recognised when an enterprise has a present obligation
 as a result of past event and it is probable that an outflow of
 resources will be required to settle the obligation in respect of which
 a reliable estimate can be made. Provisions are not discounted to its
 present value and are determined based on management''s estimate for the
 amount required to settle the obligation at the balance sheet date.
 These are reviewed at each balance sheet date and adjusted to reflect
 the current estimates of the management.
 
 A Contingent Liability is disclosed, unless the possibility of an
 outflow of resources embodying the economic benefit is remote.
 
 1.15 Segment Reporting
 
 The Company has identified primary segments based on the products and
 does not have any secondary segments. The primary segments identified
 are as follows : i. Cement
 
 ii TBK (Tile, Bath and Kitchen)
 
 iii RMC (Readymixed Concrete)
 
 Segment revenue, segment expenses, segment assets and segment
 liabilities have been identified to segments on the basis of their
 relationship to the operating activities of the segment. Revenue,
 expenses, assets and liabilities, which relate to the Company as a
 whole and are not allocable to segments on reasonable basis have been
 included under Unallocated revenue/expenses/assets/liabilities.
 
 However, segment information has been presented in the Consolidated
 Financial Statements as permitted by Accounting Standard - 17 on
 Segment Reporting as notified under the Companies (Accounting
 Standards) Rules, 2006.