A Basis of preparation of financial statements
 
 1 The Company generally follows mercantile system of accounting and
 recognizes significant items of Income and Expenditure on accrual
 basis.
 
 2 The financial statements are prepared under the Historical Cost
 convention and the accounts are prepared in accordance with the
 generally accepted accounting principles, the mandatory Accounting
 Standards issued by the Institute of Chartered Accountants of India and
 the relevant provisions of the Companies Act, 1956 as adopted
 consistently by the Company.
 
 B Sales
 
 Net Sales exclude Excise Duty, Secondary and Higher Education Cess and
 VAT/CST.
 
 C Employee Benefits
 
 1 Short-term employee benefits viz., Salaries, Wages, are recognized as
 an expense at the undiscounted amount in the profit and loss account
 for the year in which the related service is rendered.
 
 2 Defined Contribution plan viz., Contributions to Provident fund and
 Superannuation fund are recognized as an expense in the profit and loss
 account for the year in which the employees have rendered services. The
 Company contributes to Provident fund administered by the Government on
 a monthly basis at 12% of employees basic salary. The Company also
 contributes for superannuation a sum equivalent to 15% of the
 employees eligible annual basic salary subject to a maximum of Rs.1
 Lac per annum to funds administered by trustees and managed by LIC.
 There are no other obligations other than the above defined
 contribution plans.
 
 3 Defined Benefit Plan:
 
 Gratuity:The Company has its own approved Gratuity Fund. It is in the
 form of lump sum payments to vested employees on resignation,
 retirement, death while in employment or on termination of employment
 of an amount equivalent to 15 Days basic salary payable for each
 completed year of service. Vesting occurs upon completion of 5 years of
 continuous service. The Company makes annual contributions to funds
 administered by Trustees and managed by Life Insurance Corporation of
 India, based on the Actuarial Valuation by an independent external
 actuary as at the Balance sheet date using the projected unit credit
 method.
 
 Leave Encashment: The Company has a policy of encashing unavailed leave
 for its employees. The obligation for the leave encashment is
 recognised based on an independent external actuarial valuation at the
 Balance Sheet date. The expense is recognized at the present value of
 the amount payable determined based on actuarial valuation using
 projected unit credit method.
 
 D Fixed Assets:
 
 Fixed Assets are accounted at acquisition cost (net of CENVAT / VAT
 wherever applicable) less accumulated depreciation.  Depreciation has
 been provided at the rates specified under rules / Schedule XIV to the
 Companies Act 1956 at the time of acquisition of the asset:
 
 Under Straight Line Method in respect of Fibre Cement Sheet Plants at
 Arakkonam, Karur, Maksi, Silvassa and Corporate Office and Textiles
 Division.
 
 Under Written Down Value Method in respect of Fibre Cement Sheet Plants
 at Kharagpur, Vijayawada, Bhuj & Gangaikondan, Calcium Silicate Board
 Plant at Arakkonam, Plastic Storage Container units at Silvassa and
 Maksi, Clinker Grinding unit at Kharagpur and Wind Electric Generators.
 
 The land acquired under lease are amortized equally over the lease
 period and such amount is included in depreciation.  
 
 E Valuation of Inventories:-
 
 1 Raw-materials, stores, spares and packing materials are valued at
 cost, computed on a moving weighted average basis
 except Fibre, which is valued at lot basis, including the cost incurred
 in bringing the inventories to their present location
 and condition or net realizable value whichever is lower.
 
 2 Process Stock is valued at cost including the cost of conversion. The
 cost of conversion includes direct costs, including a systematic
 allocation of production and administration overheads.
 
 3 Finished goods are valued at cost or net realizable value whichever
 is lower. Cost includes cost of conversion and other costs incurred in
 bringing the inventory to its present location and condition. In
 accordance with the Accounting Standard (AS-2) excise and customs duty
 have been included in the valuation. This has no impact on the profits.
 
 F Investments
 
 All Investments being long term and non-trade are valued at cost.
 Provision for diminution is made to recognize the decline
 
 other than temporary, in the value of investments.
 
 G Contingent Liabilities
 
 Provisions including substantial degree of estimation in measurement
 are recognized when there is a present obligation as a result of past
 event and it is possible that there will be an outflow of resources.
 Un-provided contingent liabilities disclosed in the accounts by way of
 notes. Contingent assets are not recognized.
 
 H Research and Development Expenditure
 
 Expenditure on Research & Development of revenue nature incurred by the
 Company is charged to Profit and Loss account under the respective
 revenue heads, while those of capital nature are treated as fixed
 assets.
 
 I Income from Windmill
 
 1 Under wheeling and banking arrangement:
 
 Units generated from windmills are adjusted against the consumption of
 power at our factories. The monetary value of the units so adjusted,
 calculated at the prevailing EB rates net of wheeling charges has been
 included in Power & Fuel. The value of unadjusted units as on the
 Balance Sheet date has been included under Loans and Advances.
 
 2 Under Power purchase agreement:
 
 Units generated from windmills are sold to State Electricity Board at
 agreed rates and the income is included in Value of power generated
 from wind farms.  J Lease
 
 Lease rentals are expensed off with reference to the lease terms.  K
 Borrowing Costs
 
 Specific borrowing costs that are directly attributable to the
 acquisition and construction of qualifying assets are capitalized as
 part of the cost of those assets as per AS 16. All other borrowing cost
 are charged to revenue.  L Earnings per Share
 
 Earnings per share (EPS) is calculated by taking into account, the net
 profit after tax, divided by the number of Equity Shares outstanding as
 on the Balance Sheet date.
 
 M Income Tax
 
 The tax provision is considered as stipulated in AS 22 (Accounting for
 taxes on income) and includes both current and deferred tax liability.
 The Company recognizes the deferred tax liability based on the
 accumulated timing difference using the current tax rate.
 
 N Foreign Currency Transactions
 
 1.  Transactions in foreign currency are accounted at the exchange
 rates prevailing at the time of transactions.
 
 2.  Covered liabilities in foreign currencies are accounted at the rate
 at which they have been covered. Uncovered liabilities in foreign
 currency are accounted at the rates as on the balance sheet date.
 
 3.  The difference between forward rate and exchange rate at the
 inception of a forward exchange contract is recognized as income or
 expenses over the life of the contract.
 
 4.  Exchange difference in respect of uncovered foreign currency
 liabilities are recognized in the profit and loss account.
 
 O Segment Reporting
 
 In terms of Accounting Standard (AS 17) relating to Segment reporting,
 the Company reports segment wise turnover / Income, Profit before
 interest and tax and return on capital employed as part of the
 financial statements.
 
 P Subsidies and Government Grants:
 
 Investment Subsidy/Grant received from the Government is treated as
 Capital Reserve or Revenue receipt based on the nature of subsidy/grant
 as per AS 12.
 
 Interest Subsidy under Technology Upgradation Fund Scheme (TUF) is
 credited to the Interest and Finance Charges.
 
 Q Impairment of assets
 
 The Company assesses at each Balance Sheet date whether there is any
 indication that an asset may be impaired. If any such indication
 exists, the Company estimates the recoverable amount of the asset. If
 such recoverable amount of the asset or the recoverable amount of the
 cash generating unit to which the assets belong is less than its
 carrying amount, the carrying amount is reduced to its recoverable
 amount. The reduction is treated as an impairment loss and is
 recognized in the Profit and Loss account. If at the Balance Sheet
 date, there is an indication that if a previously assessed impairment
 loss no longer exists, the recoverable amount is reassessed and the
 asset is reflected at the recoverable amount subject to a maximum of
 depreciated historical cost.