1.  Contingent liabilities not provided for : Counter-guarantees in
 favour of banks: Rs. 8103.88 Lac (Previous Year Rs. 15595.50 Lac).
 
 2.  Estimated amount of contracts remaining to be executed on capital
 account (net of advances) Rs 19817.77 Lac (Previous Year Rs. 69313.03
 Lac).
 
 3.  Installments of Secured Loans falling due for repayment in next 12
 months amounting to Rs. 19301.43 Lac (Previous Year Rs. 5668.11 Lac).
 
 4.  Capital Work-in-Progress includes:
 
 a) Rs.  29880.88 Lac (Previous Year Rs.  29824.66 Lac) paid towards
 capital advances.
 
 b) Pre-operative expenses of Rs.  1831.33 Lac (Previous Year Rs.
 1968.39 Lac) which includes depreciation of Rs 45.87 Lac (Previous Year
 Rs. 140 Lac) on assets during construction period.
 
 5.  Disclosure of Sundry Creditors under Current Liabilities is based
 on the information available with the Company regarding the status of
 the suppliers as defined under the Micro, Small and Medium Enterprises
 Development Act, 2006” and there are no delays in payments to Micro,
 Small and Medium Enterprises as required to be disclosed under the said
 Act. This has been relied upon by the Auditors.
 
 (c) The estimates of future salary increases have been considered in
 actuarial valuation after taking into consideration the impact of
 inflation, seniority, promotion and other relevant factors such as
 supply and demand situation in the employment market.
 
 (d) In terms of the Guidance Note on implementing the Accounting
 Standard 15 (revised 2005), issued by the Accounting Standard Board of
 the Institute of Chartered Accountants of India, the provident fund set
 up by the company is treated as defined benefit plan since the Company
 has to meet the interest shortfall, if any.  However, as at the end of
 the year no shortfall remains unprovided for. As advised by an
 independent actuary, it is not feasible to actuarially value the
 liability considering that the rate of interest as notified by the
 Government can vary annually. Further the pattern of investments for
 investible funds is as prescribed by the Government.
 
 Accordingly other related disclosures in respect of provident fund have
 not been made.
 
 (e) Basis used to determine expected rate of return on assets:
 
 The expected return on plan assets is based on market expectation, at
 the beginning of the period, for returns over the entire life of the
 related obligations. The Gratuity Scheme is invested in a Group
 Gratuity-cum-Life Assurance cash accumulation policy offered by Life
 Insurance Corporation (LIC) of India. The information on the allocation
 of the fund into major asset classes and expected return on each major
 class are not readily available. We understand that LICs overall
 portfolio of assets is well diversified and the long term return on the
 policy is expected to be higher than the rate of return on Central
 Government Bonds. Historically too, the returns declared by LIC on such
 policies have been higher than Government Bond yields.
 
 (g) Amount recognized as an expense in respect of leave encashment and
 compensated absences is Rs. 617.25 Lac (Previous Year Rs. 484.71 Lac).
 
 6.  Revenue expenditure on Research and Development amounting to Rs.
 830.97 Lac (Previous Year Rs. 638.70 Lac) is included under relevant
 heads of expenditure. Capital expenditure relating to Research and
 Development amounting to Rs. 123.07 Lac (previous year Rs. 1787.83 Lac)
 has been included in fixed assets.
 
 7.  Balance with non scheduled bank represents balance in current
 account with Sir M. Vishweshwaraiah Sahakar Bank Niyamitha, Gulberga.
 Maximum balance outstanding during the year Rs. 104.78 Lac (previous
 year Rs. 247.36 Lac). None of the directors or their relatives are
 interested in the bank.
 
 8.  Segment Reporting:
 
 The Company has two primary business segments, namely Cement and Power.
 There is no reportable secondary segment as the Company operates only
 in one geographical area.
 
 9.  Related Party Disclosure (AS-18):
 
 Relationships:
 
 (a) Enterprises over which Key Management Personnel (KMP) are able to
 exercise significant influence 
 
 (i) The Kamla Company Limited
 
 (ii) Aqua Infra Project Limited
 
 (iii) Shri Venkatesh Ayurvedic Aushadhalaya
 
 (iv) Asish Creations Pvt. Ltd.
 
 (v) Alpha Buildhome Pvt. Ltd.
 
 (b) Key Management Personnel
 
 (i) Shri B.G. Bangur Executive Chairman
 
 (ii) Shri H.M. Bangur Managing Director
 
 (iii) Shri M.K. Singhi Executive Director
 
 (c) Relatives to key Management Personnel (i) Shri Prashant Bangur
 
 10.  The Equity Shares of the Company are listed at Bombay Stock
 Exchange Limited and National Stock Exchange of India Limited and the
 
 annual listing fee has been paid for the year
 
 11.  Information pursuant to provisions of paragraphs 3, 4-C and 4-D of
 Part-II of Schedule VI to the Companies Act, 1956.
 
 12.  The figures of previous year have been regrouped and rearranged
 wherever necessary.