Bheema Cements Ltd. कंपली की लेखा नीति

Mar 31, 2025

C. Summary of Significant Accounting Policies

A summary of the significant accounting policies applied in the preparation of the financial statements are
as given below. These accounting policies have been applied consistently to all periods presented in the
financial statements.

1. Property, plant and equipment

1.1 Initial recognition and measurement

Items of property, plant and equipment are initially recognized at acquisition cost (net of taxes which
are claimed as input credits). Subsequent measurement is done at cost less accumulated
depreciation/amortization and accumulated impairment losses. Cost includes installation and
expenditure during construction period (including interest on borrowings till the date of capitalization),
that is directly attributable to bringing the asset to the location and condition necessary for it to be
capable of operating in the manner intended by management.

The mineral deposits and mining rights are stated at the estimated realizable value, based on valuation
by an independent valuer. When parts of an item of property, plant and equipment have different useful
lives, they are recognized separately.

Deposits, payments/liabilities made provisionally towards compensation, rehabilitation and other
expenses relatable to land in possession are treated as cost of land.

In the case of assets put to use, where final settlement of bills with contractors is yet to be effected,
capitalization is done on provisional basis subject to necessary adjustment in the year of final
settlement.

Assets and systems common to more than one generating unit are capitalized on the basis of engineering
estimates/assessments.

Expenditure on major inspection and overhauls of generating unit is capitalized, when it meets the asset
recognition criteria.

Items of spare parts, stand-by equipment and servicing equipment which meet the definition of
property, plant and equipment are capitalized. Other spare parts are carried as inventory and recognized
in the statement of profit and loss on consumption.

1.2 Subsequent costs

Subsequent expenditure is recognized as an increase in the carrying amount of the asset when it is
probable that future economic benefits deriving from the cost incurred will flow to the enterprise and
the cost of the item can be measured reliably.

The cost of replacing part of an item of property, plant and equipment is recognized in the carrying
amount of the item if it is probable that the future economic benefits embodied within the part will flow
to the Company and its cost can be measured reliably. The carrying amount of the replaced partis
derecognized. The costs of the day-to-day servicing of property, plant and equipment are recognized in
profit or loss as incurred.

1.3 Decommissioning costs

The present value of the expected cost for the decommissioning of the asset after its use is included in
the cost of the respective asset if the recognition criteria for a provision are met.

1.4 Derecognition

Property, plant and equipment is derecognized when no future economic benefits are expected from their
use or upon their disposal. Gains and losses on disposal of an item of property, plant and equipment are
determined by comparing the proceeds from disposal with the carrying amount of property, plant and
equipment, and are recognized in the statement of profit and loss.

1.5 Depreciation/amortization

Depreciation on Property, plant and equipment other than those mentioned hereunder is recognized in
statement of profit and loss on a straight-line basis over the estimated useful lives of each part of an item
of property, plant and equipment, as estimated by the Management / specified in Schedule II of the
Companies Act, 2013

Items of property, plant and equipment costing less than 0.05 Lacs are depreciated fully in the year of
acquisition.

Depreciation on the mineral deposits and mineral rights is provided, based on the estimated present value
of the consumption over the remaining estimated useful period, at an equated amount of the total
consumption so arrived.

Leased assets are depreciated over the shorter of the lease term and their useful lives unless it is
reasonably certain that the Company will obtain ownership by the end of the lease term.

Depreciation on the following assets is provided on their estimated useful life ascertained on technical
evaluation by Management:

Depreciation on additions to/deductions from property, plant & equipment during the year is charged on
pro-rata basis from/up to the month in which the asset is available for use/disposed.

Where the cost of depreciable assets has undergone a change during the year due to increase/decrease in
long term liabilities on account of exchange fluctuation, price adjustment, change in duties or similar
factors, the unamortized balance of such asset is charged off prospectively over the remaining useful life
determined following the applicable accounting policies relating to depreciation/ amortization.

Where it is probable that future economic benefits deriving from the cost incurred will flow to the
enterprise and the cost of the item can be measured reliably, subsequent expenditure on a PPE along
with its unamortized depreciable amount is charged off prospectively over the revised useful life
determined by technical assessment.

In circumstance, where a property is abandoned, the cumulative capitalized costs relating to the property
are written off in the same period.

2. Capital work-in-progress

The cost of self-constructed assets includes the cost of materials & direct labour, any other costs directly
attributable to bringing the assets to the location and condition necessary for it to be capable of operating
in the manner intended by management and borrowing costs.

Expenses directly attributable to construction of property, plant and equipment incurred till they are ready
for their intended use are identified and allocated on a systematic basis on the cost of related assets.

Deposit works/cost plus contracts are accounted for on the basis of statements of account received from the
contractors.

Unsettled liabilities for price variation/exchange rate variation in case of contracts are accounted for on
estimated basis as per terms of the contracts.

3. Intangible assets and intangible assets under development

3.1 Initial recognition and measurement

Intangible assets that are acquired by the Company, which have finite useful lives, are recognized at cost.

Subsequent measurement is done at cost less accumulated amortization and accumulated impairment losses.

Cost includes any directly attributable incidental expenses necessary to make the assets ready for its
intended use.

Expenditure incurred which are eligible for capitalizations under intangible assets are carried as
intangible assets under development till they are ready for their intended use.

3.2 Derecognition

An intangible asset is derecognized when no future economic benefits are expected from their use or
upon their disposal. Gains and losses on disposal of an item of intangible assets are determined by
comparing the proceeds from disposal with the carrying amount of intangible assets and are recognized
in the statement of profit and loss.

3.3 Amortization

Other intangible assets are amortized on straight line method over the period of legal right to use or life
of the related plant, whichever is less.

4. Borrowing costs

Borrowing costs that are directly attributable to the acquisition, construction/exploration/development or
erection of qualifying assets are capitalized as part of cost of such asset until such time the assets are
substantially ready for their intended use. Qualifying assets are assets which take a substantial period of
time to get ready for their intended use or sale.

When the Company borrows funds specifically for the purpose of obtaining a qualifying asset, the
borrowing costs incurred are capitalized. When Company borrows funds generally and uses them for the
purpose of obtaining a qualifying asset, the capitalization of the borrowing costs is computed based on the
weighted average cost of general borrowing that are outstanding during the period and used for the
acquisition, construction/exploration or erection of the qualifying asset.

Capitalization of borrowing costs ceases when substantially all the activities necessary to prepare the
qualifying assets for their intended uses are complete. Borrowing costs consist of interest and other costs
that an entity incurs in connection with the borrowing of funds. Income earned on temporary investment of
the borrowings pending their expenditure on the qualifying assets is deducted from the borrowing costs
eligible for capitalization.

Borrowing costs include exchange differences arising from foreign currency borrowings to the extent that
they are regarded as an adjustment to interest costs.

Other borrowing costs are recognized as an expense in the year in which they are incurred.

5. Inventories

Inventories are valued at the lower of cost and net realizable value. Cost includes cost of purchase, cost of
conversion and other costs incurred in bringing the inventories to their present location and condition. Cost
is determined on weighted average basis. Costs of purchased inventory are determined after deducting
rebates and discounts. Net realizable value is the estimated selling price in the ordinary course of business,
less estimated costs of completion and the estimated costs necessary to make the sale.

The diminution in the value of obsolete, unserviceable and surplus stores & spares is ascertained on review
and provided for.

6. Cash and cash equivalents

Cash and cash equivalents in the balance sheet comprise cash at banks and on hand and short-term deposits
with an original maturity of three months or less, which are subject to an insignificant risk of changes in
value.

7. Government grants

Government grants are recognized initially as deferred income when there is reasonable assurance that they
will be received and the Company will comply with the conditions associated with the grant.

Grants that compensate the Company for the cost of an asset are recognized in profit or loss on a systematic
basis over the useful life of the related asset.

Grants that compensate the Company for expenses incurred are recognized over the period in which the

related costs are incurred and deducted from the related expenses.

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Mar 31, 2013

I. BASIS OF PREPARATION:

The financial statements are prepared and presented under the historical cost convention on the accrual basis of accounting in accordance with the accounting principles and generally accepted in India and comply with mandatory Accounting Standards issued by the Institute of Chartered Accountants of India to the extent applicable and the relevant provisions of the Companies Act, 1956, except in respect of mineral deposits and rights which are recorded at estimated realizable value.

II. USE OF ESTIMATES:

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities on the date of the financial statements and reported amounts of revenues and expenses for the period. Actual results could differ from these estimates. Any revision to accounting estimates is recognized prospectively in the current and future periods.

III. FIXED ASSETS:

Fixed Assets are stated at acquisition cost (net of taxes which are claimed as input credits) less depreciation. Capital work-in-progress is stated at Cost. Cost includes installation and expenditure during construction period including interest on borrowings till the date of capitalization. The mineral deposits and mining rights are stated at the estimated realizable value, based on a valuation by an independent valuer.

Depreciation on fixed assets other than those mentioned hereunder has been calculated using the straight-line method at the rates arrived on the basis of useful lives of the assets as estimated by the Management. Assets costing less than Rs. 0.05 are depreciated fully in the year of acquisition.

Depreciation on the mineral deposits and mineral rights has been provided, based on the estimated present value of the consumption over the remaining estimated useful period, at an equated amount of the total consumption so arrived at.

Management estimates the useful life of various assets as follows:

Factory Buildings Owned 28 years

Non-factory Buildings 58 years

Plant & Machinery, Electrical Equipment 26 years

Furniture, Fixtures and Office Equipment 15 years

Vehicles 10 years

Computer Equipment 6 years

Mineral Deposits 13/15/20 years

Mining Rights 13/15/20 years

IV. INVENTORIES:

Inventories are valued at the lower of cost and net realizable value. Cost of inventories comprises all costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their present location and condition. The costs of Stores and Spares and Raw materials are arrived on FIFO basis.

V. INVESTMENTS:

Investments are classified into Long Term and are carried at cost. Provision for diminution, if any, in the value of each Long Term Investment is made only if such a decline is other than temporary in nature in the opinion of the management.

VI. EMPLOYEE BENEFITS:

The Company contributes to the funds administered by the Regional Provident Fund Commissioner towards Provident Fund. Contributions payable to an approved Gratuity Fund (a defined benefit plan), determined by an independent actuary at the Balance Sheet date, are charged to the Profit & Loss Account. Provision for leave encashment cost is made on the basis of actuarial valuation at the Balance Sheet date, carried out by an independent actuary.

VII. FOREIGN EXCHANGE TRANSACTIONS:

Foreign currency transactions are recorded using the exchange rates prevailing on the dates of the respective transactions. Exchange differences arising on the foreign currency transactions settled during the year are recognized in the profit & Loss A/c except that the exchange differences related to acquisition of fixed assets from a country outside India are adjusted in the carrying amount of the related fixed assets.

VIII. REVENUE RECOGNITION:

i) All income and expenditure are accounted on accrual basis, except other wise stated.

ii) In respect of derivative contracts, gain/loss is recognized on actual settlement of respective contracts.

Internal Consumption of the Company''s end product, which is other wise marketable, is accounted for at a transfer price and is included under sales.

IX. IMPAIRMENT OF ASSETS:

An Asset is treated as Impaired when the carrying of cost of Assets exceeds its receivable value. An impairment loss is charged for when the asset is identified as impaired. The impairment loss received in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

X. PROVISION, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:

Provisions involving Substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent assets are neither recognized nor disclosed in the financial statements.

XI. DEFERRED INCOME TAXES:

Deferred Tax charge or credit reflects that tax effects of timing differences between accounting income and taxable income for the period. The deferred tax charge or credit and the corresponding deferred tax liability or asset are recognized using the tax rates that have been enacted or substantial enacted by the Balance Sheet date. Deferred Tax assets recognized only to that extent there is reasonable certainty that the assets can be realized in future, however, where there is unabsorbed depreciation or carry forward losses, deferred tax assets are recognized only if there is virtual certainty of realization of such assets. Deferred tax assets are reviewed at each balance sheet date and written down or written up to reflect the amount that is reasonable/virtual certainty (as the case may be) to be realized.

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Mar 31, 2012

I. BASIS OF PREPARATION:

The financial statements are prepared and presented under the historical cost convention on the accrual basis of accounting in accordance with the accounting principles and generally accepted in India and comply with mandatory Accounting Standards issued by the Institute of Chartered Accountants of India to the extent applicable and the relevant provisions of the Companies Act, 1956, except in respect of mineral deposits and rights which are recorded at estimated realizable value.

II. USE OF ESTIMATES:

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities on the date of the financial statements and reported amounts of revenues and expenses for the period. Actual results could differ from these estimates. Any revision to accounting estimates is recognized prospectively in the current and future periods.

III. FIXED ASSETS:

Fixed Assets are stated at acquisition cost (net of taxes which are claimed as input credits) less depreciation. Capital work-in-progress is stated at Cost. Cost includes installation and expenditure during construction period including interest on borrowings till the date of capitalization. The mineral deposits and mining rights are stated at the estimated realizable value, based on a valuation by an independent valuer.

Depreciation on fixed assets other than those mentioned hereunder has been calculated using the straight-line method at the rates arrived on the basis of useful lives of the assets as estimated by the Management. Assets costing less than Rs. 0.05 are depreciated fully in the year of acquisition.

Depreciation on the mineral deposits and mineral rights has been provided, based on the estimated present value of the consumption over the remaining estimated useful period, at an equated amount of the total consumption so arrived at.

IV. INVENTORIES:

Inventories are valued at the lower of cost and net realizable value. Cost of inventories comprises all costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their present location and condition. The costs of Stores and Spares and Raw materials are arrived on FIFO basis.

V. INVESTMENTS

Investments are classified into Long Term and are carried at cost. Provision for diminution, if any, in the value of each Long Term Investment is made only if such a decline is other than temporary in nature in the opinion of the management.

VI. EMPLOYEE BENEFITS:

The Company contributes to the funds administered by the Regional Provident Fund Commissioner towards Provident Fund. Contributions payable to an approved Gratuity Fund (a defined benefit plan), determined by an independent actuary at the Balance Sheet date, are charged to the Profit & Loss Account. Provision for leave encashment cost is made on the basis of actuarial valuation at the Balance Sheet date, carried out by an independent actuary.

VI. FOREIGN EXCHANGE TRANSACTIONS:

Foreign currency transactions are recorded using the exchange rates prevailing on the dates of the respective transactions. Exchange differences arising on the foreign currency transactions settled during the year are recognized in the profit & Loss A/c except that the exchange differences related to acquisition of fixed assets from a country outside India are adjusted in the carrying amount of the related fixed assets.

VIII. REVENUE RECOGNITION:

i) All income and expenditure are accounted on accrual basis, except otherwise stated.

ii) In respect of derivative contracts, gain/loss is recognized on actual settlement of respective contracts.

Internal Consumption of the Company's end product, which is other wise marketable, is accounted for at a transfer price and is included under sales.

IX. IMPAIRMENT OF ASSETS:

An Asset is treated as Impaired when the carrying of cost of Assets exceeds its receivable value. An impairment loss is charged for when the asset is identified as impaired. The impairment loss received in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

X. PROVISION, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:

Provisions involving Substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent assets are neither recognized nor disclosed in the financial statements.

XI. DEFERRED INCOME TAXES:

Deferred Tax charge or credit reflects that tax effects of timing differences between accounting income and taxable income for the period. The deferred tax charge or credit and the corresponding deferred tax liability or asset are recognized using the tax rates that have been enacted or substantial enacted by the Balance Sheet date. Deferred Tax assets recognized only to that extent there is reasonable certainty that the assets can be realized in future, however, where there is unabsorbed depreciation or carry forward losses, deferred tax assets are recognized only if there is virtual certainty of realization of such assets. Deferred tax assets are reviewed at each balance sheet date and written down or written up to reflect the amount that is reasonable/virtual certainty (as the case may be) to be realized.

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Mar 31, 2011

1. BASIS OF PREPARATION:

The financial statements are prepared and presented under the historical cost convention on the accrual basis of accounting in accordance with the accounting principles and generally accepted in India and comply with mandatory Accounting Standards issued by the Institute of Chartered Accountants of India to the extent applicable and the relevant provisions of the Companies Act, 1956, except in respect of mineral deposits and rights which are recorded at estimated realizable value.

2. USE OF ESTIMATES:

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities on the date of the financial statements and reported amounts of revenues and expenses for the period. Actual results could differ from these estimates. Any revision to accounting estimates is recognized prospectively in the current and future periods.

3. FIXED ASSETS:

Fixed Assets are stated at acquisition cost (net of taxes which are claimed as input credits) less depreciation. Capital work-in-progress is stated at Cost. Cost includes installation and expenditure during construction period including interest on borrowings till the date of capitalization. The mineral deposits and mining rights are stated at the estimated realizable value, based on a valuation by an independent valuer.

Depreciation on fixed assets other than those mentioned hereunder has been calculated using the straight-line method at the rates arrived on the basis of useful lives of the assets as estimated by the Management. Assets costing less than Rs. 5.00 are depreciated fully in the year of acquisition.

Depreciation on the mineral deposits and mineral rights has been provided, based on the estimated present value of the consumption over the remaining estimated useful period, at an equated amount of the total consumption so arrived at.

Management estimates the useful life of various assets as follows:

Factory Buildings Owned 28 years

Non-factory Buildings 58 years

Plant & Machinery, Electrical Equipment 26 years

Furniture, Fixtures and Office Equipment 15 years

Vehicles 10 years

Computer Equipment 6 years

Mineral Deposits 13/15/20 years

Mining Rights 13/15/20 years

4. INVENTORIES:

Inventories are valued at the lower of cost and net realizable value. Cost of inventories comprises all costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their present location and condition. The costs of Stores and Spares and Raw materials are arrived on FIFO basis.

5. INVESTMENTS:

Investments are classified into Long Term and are carried at cost. Provision for diminution, if any, in the value of each Long Term Investment is made only if such a decline is other than temporary in nature in the opinion of the management.

6. EMPLOYEE BENEFITS:

The Company contributes to the funds administered by the Regional Provident Fund Commissioner towards Provident Fund. Contributions payable to an approved Gratuity Fund (a defined benefit plan), determined by an independent actuary at the Balance Sheet date, are charged to the Profit & Loss Account. Provision for leave encashment cost is made on the basis of actuarial valuation at the Balance Sheet date, carried out by an independent actuary.

7. FOREIGN EXCHANGE TRANSACTIONS:

Foreign currency transactions are recorded using the exchange rates prevailing on the dates of the respective transactions. Exchange differences arising on the foreign currency transactions settled during the year are recognized in the profit & Loss A/c except that the exchange differences related to acquisition of fixed assets from a country outside India are adjusted in the carrying amount of the related fixed assets.

8. REVENUE RECOGNITION:

i) All income and expenditure are accounted on accrual basis, except other wise stated.

ii) In respect of derivative contracts, gain/loss is recognized on actual settlement of respective contracts.

Internal Consumption of the Company's end product, which is other wise marketable, is accounted for at a transfer price and is included under sales.

9. IMPAIRMENT OF ASSETS:

An Asset is treated as Impaired when the carrying of cost of Assets exceeds its receivable value. An impairment loss is charged for when the asset is identified as impaired. The impairment loss received in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

10. PROVISION, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:

Provisions involving Substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent assets are neither recognized nor disclosed in the financial statements.

11. DEFERRED INCOME TAXES:

Deferred Tax charge or credit reflects that tax effects of timing differences between accounting income and taxable income for the period. The deferred tax charge or credit and the corresponding deferred tax liability or asset are recognized using the tax rates that have been enacted or substantial enacted by the Balance Sheet date. Deferred Tax assets recognized only to that extent there is reasonable certainty that the assets can be realized in future, however, where there is unabsorbed depreciation or carry forward losses, deferred tax assets are recognized only if there is virtual certainty of realization of such assets. Deferred tax assets are reviewed at each balance sheet date and written down or written up to reflect the amount that is reasonable/virtual certainty (as the case may be) to be realized

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Mar 31, 2010

1. BASIS OF PREPARATION:

The financial statements are prepared and presented under the historical cost convention on the accrual basis of accounting in accordance with the accounting principles and generally accepted in India and comply with mandatory Accounting Standards issued by the Institute of Chartered Accountants of India to the extent applicable and the relevant provisions of the Companies Act, 1956, except in respect of mineral deposits and rights which are recorded at estimated realizable value.

2. USE OF ESTIMATES:

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities on the date of the financial statements and reported amounts of revenues and expenses for the period. Actual results could differ from these estimates. Any revision to accounting estimates is recognized prospectively in the current and future periods.

3. FIXED ASSETS:

Fixed Assets are stated at acquisition cost (net of MODVAT) less depreciation. Capital work-in-progress is stated at Cost. Cost includes installation and expenditure during construction period including interest on borrowings till the date of capitalization. The mineral deposits and mining rights are stated at the estimated realizable value, based on a valuation by an independent valuer.

Depreciation on fixed assets other than those mentioned hereunder has been calculated using the straight-line method at the rates arrived on the basis of useful lives of the assets as estimated by the Management. Assets costing less than Rs. 5.00 are depreciated fully in the year of acquisition.

Depreciation on the mineral deposits and mineral rights has been provided, based on the estimated present value of the consumption over the remaining estimated useful period, at an equated amount of the total consumption so arrived at.

Depreciation on the 4.5MW wind farms has been provided at the rates specified in the Schedule-XIV of the Companies Act, 1956 at the appropriate rate on the basis of Straight Line Method.

Management estimates the useful life of various assets as follows:

Factory Buildings Owned 28 years

Non-factory Buildings 58 years

Plant & Machinery, Electrical Equipment 26 years

Furniture, Fixtures and Office Equipment 15 years

Vehicles 10 years

Computer Equipment 6 years

Mineral Deposits 13/15/20 years

Mining Rights 13/15/20 years

4. INVENTORIES:

Inventories are valued at the lower of cost and net realizable value. Cost of inventories comprises all cost of purchase, cost of conversion and other costs incurred in bringing the inventories to their present location and condition. The costs of Stores and Spares and Raw materials are arrived on FIFO basis.

5. INVESTMENTS

Investments are classified into Long Term and are carried at cost. Provision for diminution, if any, in the value of each Long Term Investment is made only if such a decline is other than temporary in nature in the opinion of the management.

6. EMPLOYEE BENEFITS:

The Company contributes to the funds administered by the Regional Provident Fund Commissioner towards Provident Fund. Contributions payable to an approved Gratuity Fund (a defined benefit plan), determined by an independent actuary at the Balance Sheet date, are charged to the Profit & Loss Account. Provision for leave encashment cost is made on the basis of actuarial valuation at the Balance Sheet date, carried out by an independent actuary.

7. FOREIGN EXCHANGE TRANSACTIONS:

Foreign currency transactions are recorded using the exchange rates prevailing on the dates of the respective transactions. Exchange differences arising on the foreign currency transactions settled during the year are recognized in the profit & Loss A/c except that the exchange differences related to acquisition of fixed assets from a country outside India are adjusted in the carrying amount of the related fixed assets.

8. REVENUE RECOGNITION:

i) All income and expenditure are accounted on accrual basis, except otherwise stated.

ii) In respect of derivative contracts, gain/loss is recognized on actual settlement of respective contracts.

Internal Consumption of the Companys end product, which is otherwise marketable, is accounted for at a transfer price and is included under sales.

9. IMPAIRMENT OF ASSETS:

An Asset is treated as Impaired when the carrying of cost of Assets exceeds its receivable value. An impairment loss is charged for when the asset is identified as impaired. The impairment loss received in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

10. PROVISION, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:

Provisions involving Substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent assets are neither recognized nor disclosed in the financial statements.

11. DEFERRED INCOME TAXES:

Deferred Tax charge or credit reflects that tax effects of timing differences between accounting income and taxable income for the period. The deferred tax charge or credit and the corresponding deferred tax liability or asset are recognized using the tax rates that have been enacted or substantial enacted by the Balance Sheet date. Deferred Tax assets recognized only to that extent there is reasonable certainty that the assets can be realized in future, however, where there is unabsorbed depreciation or carry forward losses, deferred tax assets are recognized only if there is virtual certainty of realization of such assets. Deferred tax assets are reviewed at each balance sheet date and written down or written up to reflect the amount that is reasonable/virtual certainty (as the case may be) to be realized

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Mar 31, 2009

1. BASIS OF PREPARATION:

The financial statements are prepared and presented under the historical cost convention, on the accrual basis of accounting in accordance with the accounting principles generally accepted in India and comply with mandatory Accounting Standards issued by the Institute of Chartered Accountants of India to the extent applicable and the relevant provisions of the Companies Act, 1956, except in respect of mineral deposits and rights which are recorded at estimated realizable value.

2. USE OF ESTIMATES:

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities on the date of the financial statements and reported amounts of revenues and expenses for the period. Actual results could differ from these estimates. Any revision to accounting estimates is recognized prospectively in the current and future periods.

3. FIXEDASSETS:

Fixed Assets are stated at acquisition cost (net of MODVAT) less depreciation. Capital work-in-progress is stated at Cost. Cost includes installation and expenditure during construction period including interest on borrowings till the date of capitalization. The mineral deposits and mining rights are stated at the estimated realizable value, based on a valuation by an independent valuer.

Depreciation on fixed assets, other than those mentioned hereunder, has been calculated using the straight-line method at the rates arrived on the basis of useful lives of the assets as estimated by the Management. Assets costing less than Rs.5,000 are depreciated fully in the yearof acquisition.

Depreciation on the mineral deposits and mineral rights has been provided, based on the estimated present value of the consumption over the remaining estimated useful period, at an equated amount of the total consumption so arrived at.

Depreciation on the 4.5MW wind farms has been provided at the rates specified in the Schedule-XIV of the Companies Act, 1956 at the appropriate rate on the basis of Straight Line Method. "

Management estimates the useful life of various assets as follows:

Factory Buildings Owned 28 years

Non-factory Buildings 58 years

Plant & Machinery, Electrical Equipment 26 years

Furniture, Fixtures and Office Equipment 15 years

Vehicles 10 years Computer Equipment 6 years

Mineral Deposits 13/15/20 years

Mining Rights 13/15/20 years

4. INVENTORIES:

Inventories are valued at the lower of cost and net realizable value. Cost of inventories comprises all cost of purchase, cost of conversion and other costs incurred in bringing the inventories to their present location and condition. The costs of Stores and Spares and Raw materials are arrived on FIFO basis.

5. INVESTMENTS

Investments are classified into Long Term and are carried at cost. Provision for diminution, if any, in the value of each Long Term Investment is made only if such a decline is other than temporary in nature in the opinion of the management.

6. EMPLOYEE BENEFITS:

The Company contributes to the funds administered by the Regional Provident Fund Commissioner towards Provident Fund. Contributions payable to an approved Gratuity Fund (a defined benefit plan), determined by an independent actuary at the Balance Sheet date, are charged to the Profit & Loss Account. Provision for leave encashment cost is made on the basis of actuarial valuation at the Balance Sheet date, carried out by an independent actuary.

7. FOREIGN EXCHANGE TRANSACTIONS:

Foreign currency transactions are recorded using the exchange rates prevailing on the dates of the respective transactions. Exchange differences arising on the foreign currency transactions settled during the year are recognized in the Profit & Loss A/c except that the exchange differences related to acquisition of fixed assets from a country outside India are adjusted in the carrying amount of the related fixed assets.

8. REVENUE RECOGNITION:

i) All income and expenditure are accounted on accrual basis, except other wise stated.

ii) In respect of desirable contracts, gain/loss is recognized on actual settlement of respective contracts.

Internal Consumption of the Companys end product, which is other wise marketable, is accounted for at a transfer price and is included under sales.

9. IMPAIRMENT OF ASSETS:

An Asset is treated as Impaired when the carrying of cost of Assets exceeds its receivable value. An impairment loss is charged for when the asset is identified as impaired. The impairment loss received in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

10. PROVISION, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent assets are neither recognized nor disclosed in the financial statements.

11. DEFERRED INCOME TAXES:

Deferred Tax charge or credit reflects that tax effects of timing differences between accounting income and taxable income for the period. The deferred tax charge or credit and the corresponding deferred tax liability or asset are recognized using the tax rates that have been enacted or subsequently enacted at the Balance Sheet date. Deferred Tax assets are recognized only to the extent there is reasonable certainty that the assets can be realized in future, however, where there is unabsorbed depreciation or carry forward losses, deferred tax assets are recognized only if there is virtual certainty of realization of such assets. Deferred tax assets are reviewed at each balance sheet date and written down or written up to reflect the amount that is reasonable/virtual certainty (as the case may be) to be realized.

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Mar 31, 2008

1. BASIS OF PREPARATION:

The financial statements are prepared and presented under the historical cost convention, on the accrual basis of accounting in accordance with the accounting principles and generally accepted in India and comply with mandatory Accounting Standards issued by the Institute of Chartered Accountants of India to. the extent applicable and the relevant provisions of the Companies Act, 1956, except in respect of mineral deposits and rights which are recorded at estimated realizable value.

2. USE OF ESTIMATES:

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities on the date of the financial statements and reported amounts of revenues and expenses for the period. Actual results could differ from these estimates. Any revision to accounting estimates is recognized prospectively in the current and future periods.

3. FIXED ASSETS:

Fixed Assets are stated at acquisition cost (net of MODVAT) less depreciation cost includes installation and expenditure during construction period including interest on borrowings till the date of capitalization. The mineral deposits and mining rights are stated at the estimated realizable value, based on a valuation by an independent valuer.

Depreciation on fixed assets other than those mentioned hereunder has been calculated using the straight-line method at the rates arrived on the basis of useful lives of the assets as estimated by the Management. Assets costing less than Rs. 5,000 are depreciated fully in the year of acquisition.

Depreciation on the mineral deposits and mineral rights has been provided, based on the estimated present value of the consumption over the remaining estimated useful period, at ah equated amount of the total consumption so arrived at.

Depreciation on the 4.5MW wind farms has been provided at the rates specified in the Schedule- XIV of the Companies Act, 1956 at the appropriate rate on the basis of Straight Line Method.

Management estimates the useful life of various assets as follows:

Factory Buildings Owned 28 years Non-factory Buildings 58 years Plant & Machinery, Electrical Equipment 26 years Furniture, Fixtures and Office Equipment 15 years Vehicles 10 years Computer Equipment 6 years Mineral Deposits 13/15/20 years Mining Rights 13/15/20 years

4. INVENTORIES:

Inventories are valued as under: Stores & Spares, Raw Materials and Work-in-process are valued at cost; finished goods are valued at lower of cost or net realizable value. The Cost is arrived on FIFO basis.

5. INVESTMENTS

Investments are classified into Long Term and are carried at cost. Provision for diminution, if any, in the value of each Long Term Investment is made only if such a decline is other than temporary in the opinion of the management.

6. LIABILITY FOR RETIREMENT BENEFITS:

The Company contributes to the funds administered by the Regional Provident Fund Commissioner towards Provident Fund and has also taken a group gratuity policy with the LIC of India covering its gratuity liability. The contribution and premium paid are charged to the Revenue Account.

7. FOREIGN EXCHANGE TRANSACTIONS:

Foreign currency transactions are recorded using the exchange rates prevailing on the dates of the respective transactions. Exchange differences arising on the foreign currency transactions settled during the year are recognized in the profit & Loss A/c except that the exchange differences related to acquisition of fixed assets from a country outside India are adjusted in the carrying amount of the related fixed assets.

8. REVENUE RECOGNITION:

i) All income and expenditure are accounted on accrual basis, except other wise stated.

ii) In respect of desirable contracts, gain/loss is recognized on actual settlement of respective contracts.

Internal Consumption of the Companys end product, which is other wise marketable, is accounted for at a transfer price and is included under sales.

9. IMPAIRMENT OF ASSETS:

An Asset is treated as Impaired when the carrying of cost of Assets exceeds its receivable value. An impairment loss is charged for when the asset is identified as impaired. The impairment loss received in prior accounting period is reversed if there has been a change in the estimate of recoverable amount. Ý

10. PROVISION, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:

Provisions involving Substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent assets are neither recognized nor disclosed in the financial statements.

11. DEFERRED INCOME TAXES:

Deferred Tax charge or credit reflects that tax effects of timing differences between accounting income and taxable income for the period. The deferred tax charge or credit and the corresponding deferred tax liability or asset are recognized using the tax rates that have been enacted or substantial enacted by the Balance Sheet date. Deferred Tax assets recognized only to that extent there is reasonable certainty that the assets can be realized in future* however, where there is unabsorbed depreciation or carry forward losses, deferred tax assets are recognized only if there is ritual certainty of realization of such assets. Deferred tax assets are reviewed at each balance sheet date and written down or written up to reflect the amount that is reasonable/ virtual certainty (as the case may be) to be realized.

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Mar 31, 2006

1 Accounting Convention: The financial statements are prepared under the historical cost convention in accordance with applicable accounting standards.

2. Fixed Assets: Fixed Assets are stated at acquisition cost (net of Modvat) less depreciation cost includes installation and expenditure during construction period including interest on borrowings till the date of capitalisation.

Depreciation on fixed assets has been calculated using the straight line method at the rates arrived on the basis of useful lives of the assets as estimated by the Managment. Assets costing less than Rs. 5,000 are drepreciated fully in the year of acquisition.

Management estimates the useful life of various assets as follows:

Factory Buildings Owned 28 years

Non factory Buildings 58 Years

Plant & Machinery, Electrical Equipment 26 years

Furniture, Fixtures and Office Equipment 15 years

Vehicles 10 years

Computer Equipment 6 years

3. Inventories: Inventories are valued as under: Stores & Spares, Raw Materials and Work-in-process are valued at cost, finished goods are valued at lower of cost or net realizable value. The Cost is arrived on FIFO basis.

4. Liability for retirement benefits: The Company contributes to the funds administered by the Regional Provident Fund Commissioner towards Provident Fund and has also taken a group gratuity policy with the LIC of India covering its gratuity liability. The contribution and premium paid are charged to the Revenue Account.

5. Foreign Exchange Transactions: There are no Foreign Exchange Transactions either on Capital or Revenue Account.

6. Revenue Recognition: All income and expenditure are accounted on accrual basis, except other wise stated.

7. Internal Consumption of the Companys end product, which are otherwise marketable, is accounted for at transfer price and is included under sales.

8. Provisions and Contingencies: A provision is made in the books of accounts when there is a present obligation as a result of past event that probably required an outflow of resources and a reasonable estimate can be made of the obligation.A disclosure for a contingent liability is made when there is a possible obligation or present obligation that arises from past events and the outflow of resources embedding economic benefit is not probable.A contingent liability or a provision at the Balance Sheet date is not disclosed or recognized unless the possibility of any outflow in settlement is remote;

9. Deferred Income Taxes: Deferred Tax charge or credit reflects that tax effects of timing differences between accounting income and taxable income for the period. The deferred tax charge or credit and the corresponding deferred tax liability or asset are recognized using the tax rates that have been enacted or substantial enacted by the Balance Sheet date. Deferred Tax assets recognized only to that extent there is reasonable certainty that the assets can be realized in future, however, where there is unabsorbed depreciation or carry forward losses, deferred tax assets are recognized only if there is ritual certainty of realization of such assets. Deferred tax assets are reviewed at each balance sheet date and written down or written up to reflect the amount that is reasonable/virtual certainty (as the case may be) to be realised

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Mar 31, 2003

SIGNIFICANT ACCOUNTING POLICIES

1. Fixed Assets: Fixed Assets are shown at acquisition cost. Depreciation is calculated as per the amended rates Prescribed Under Schedule XIV vide Notification dated 16th December, 1993 of Companies Act, 1956 on Straight line method, as per the provisions of Section 205(2)(b).

2. Inventories: Inventories are valued as under:

Stores & Spares, Raw Materials and Work-in-process are valued at cost, finished goods are valued at lower of cost or net realizable value. The Cost is arrived on FIFO basis.

3. Liability for retirement benefits : The Company contributes to the funds administered by the Regional Provident Fund Commissioner towards Provident Fund, and has also taken a group gratuity, policy with the LIC of India Covering its gratuity liability. The contribution and premium paid are charged to the Revenue Account.

4 Foreign Exchange Transactions: There are no foreign exchange transactions either on Capital or Revenue Account.

5. Revenue Recognition: All income and expenditure are accounted on accrual basis, except other wise stated.

6. Internal Consumption of the Company's end product, which are other wise marketable, is accounted for at transfer price and is included under sales.

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Mar 31, 2002

1. Fixed Assets: Fixed Assets are shown at acquisition cost. Depreciation is calculated as per the amended rates prescribed under Schedule XIV vide Notification dated 16th December, 1993 of Companies Act, 1956 on Straight line method, as per the provisions of Section 205(2)(b).

2. Inventories : inventories are valued as under: Stores & Spares, Raw Materials and Work-in-process are valued at average cost, finished goods are valued at cost or realizable value, which ever is lower. The Cost has been ascertained on FIFO basis.

3. Liability for retirement benefits: The Company contributes to the funds administered by the Regional Provident Fund Commissioner towards Provident Fund, and has also taken a group gratuity policy with the LIC of India covering its gratuity liability. The contribution and premium paid are charged to the Revenue Account.

4. Foreign Exchange Transactions: There are no foreign exchange transactions either on Capital or Revenue Account.

5. Revenue Recognition: All income and expenditure are accounted on accrual basis, except other wise stated.

6. Internal Consumption of the Companys end product, which are other wise marketable, is accounted for at transfer price and is included under sales.

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Mar 31, 2001

1. Fixed Assets : Fixed Assets are shown at acquisition cost. Depreciation is calculated as per the amended rates Prescribed Under Schedule XIV vide Notification dated 16th December, 1993 of Companies Act, 1956 on Straight line method, as per the provision of Section 205(2)(b).

2. Inventories : Inventories are valued as under : Stores & Spares, Raw Materials and Work-in-process are valued at average cost, finished goods are valued at cost or realizable value, whichever is lower. The Cost has been ascertained on FIFO basis.

3. Liability for retirement benefits : The Company contributes to the funds administered by the Regional Provident Fund Commissioner towards Provident Fund, and has also taken a group gratuity with the LIC of India covering its gratuity liability. The contribution and premium paid are charged to the Revenue Account.

4. Foreign Exchange Transactions : There are no foreign exchange transactions either on Capital or Revenue Account.

5. Revenue Recognition : All income and Expenditure are accounted on accrual basis, except other wise stated.

6. Internal Consumption of the Company's end product, which are other wise marketable, is accounted for at transfer price and is included under sales.

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Mar 31, 2000

1. Fixed Assets : Fixed Assets are shown at acquisition cost. Depreciation is calculated as per the amended rates prescribed Under Schedule XIV vide Notification dated 16th December, 1993 of Companies Act, 1956 on Straight line method, as per the provisions of Section 205(2)(b).

2. Inventories : Inventories are valued as under : Stores & Spares, Raw Materials and Work- in-process are valued at average cost, finished goods are valued at cost or realisable value, whichever is lower. The cost has been ascertained on FIFO basis.

3. Liability for retirement benefits : The Company contributes to the funds administered by the Regional Provident Fund Commissioner towards Provident Fund, and has also taken a Group Gratuity Policy with the LIC of India Covering its gratuity liability. The contribution and premium paid are charged to the Revenue Account.

4. Foreign Exchange Transactions : There are no foreign exchange transactions either on Capital or Revenue Account.

5. Revenue Recognition : All Income and Expenditure are accounted on accrual basis, except otherwise stated.

6. Internal Consumption of the Company's end product, which are other wise marketable, is accounted for at transfer price and is included under sales.

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Mar 31, 1996

1. Fixed Assets: Fixed Assets are shown at acquisition cost. Depreciation is calculated as per the amendment to Schedule XIV vide Notification dated 16th December, 1993 of Companies Act, 1956 on Straight line method, as per the provisions of Section 205(2) (b).

2. Inventories: Inventories are valued as under: Stores & Spares, Raw Materials, Work-in-progress are valued at cost, Finished Goods are valued at cost or market value, whichever is lower.

3. Liability for retirement benefits: The Company contributes to the funds administered by the Regional Provident Fund Commissioner towards Provident Fund, and has also taken a group gratuity policy with the LIC of India covering its gratuity liability. The contribution and premium paid are charged to the revenue Account.

4. Foreign Exchange transactions : There are no foreign exchange transactions either on Capital or Revenue Account.

a. Revenue Recognition All Income and Expenditure are accounted on accrual basis.

6. Internal Consumption of the Company's end products, which are other wise marketable is accounted for at transfer price and is included under sales.

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Mar 31, 1995

SIGNIFICANT ACCOUNTING POLICIES

1. Fixed Assets: fixed Assets are shown at acquisition cost.Depreciation is calculated as per the amendment to Schedule XIV vide Notification dated 16th December, 1993 of Companies Act, 1956 on Straight line method, as per the provisions of Section 205(2) (b).

2. Inventories: Inventories are valued as under : Stores & Spares, Raw Materials, Work-in-progress are valued at cost, finished goods are valued at cost or market value,whichever is lower.

3. Liability for retirement benefits: The Company has taken a Gratuity Policy covering the retirement benefits payable by the Company to its employees. The premium paid is charged to revenue.

4. Foreign Exchange transactions : There are no foreign exchange transactions either on Capital or Revenue Account.

5. Revenue Recognition : All income and Expenditure are accounted on accrual basis except for provision made for disputed power tariff.

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Mar 31, 1994

Fixed Assets:

Fixed Assets are shown at acquisition cost. Depreciation is calculated as per the amendment to Schedule XIV vide Notification dated 16th December, 1993 of Companies Act, 1956 on Straight line method, as per the provisions of Section 205 (2) (b). Depreciation has been provided in the books only upto the year ended 30th June, 1988. However, Depreciation after 1st July, 1988 is quantified and indicated in Note No.6 under Schedule `O'.

Inventories:

Inventories are valued as under: Stores & Spares, Raw Materials, Work-in-progress are valued at cost, finished goods are valued at cost or market value, whichever is lower.

Liability for retirement benefits:

The Company has taken a Gratuity Policy covering the retirement benefits payable by the Company to its employees. The premium paid is charged to revenue.

Foreign Exchange transactions:

There are no foreign exchange transactions either on Capital or Revenue Account.

Revenue Recognition:

All Income and Expenditure are accounted on accrual basis except for provision made for disputed power tariff.

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Mar 31, 1993

Fixed Assets:

Fixed assets are shown at acquisition cost. Depreciation is calculated at the rates specified.

Depreciation hasa been provided in the books only upto the year ended 30th June 1988.

Inventories:

Inventories are valued as under stores and spares, Raw materials, Work in progress are valued at cost, finished goods are valued at cost or market value, whichever is lower.

Foreign exchange transactions:

There are no foreign exchange transactions either on capital or revenue account.

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Mar 31, 1992

Depreciation has been provided in the books only upto the year ended 30th june, 1988. However, Depreciation after 1st July, 1988 is quantified and indicated in Note No.6.

The total amount of Depreciation that has not been provided for upto 31st March, 1992 is Rs.353.39 lakhs.

Inventories:

Inventories are valued as under : stores and spares, Raw materials, work in progress are valued at costd, finished goods are valued at cost or market value whichever is lower.

Revenue recognition: All income and expenditure are accounted on accrual basis except where stated otherwise.

Liability for retirement benefits: The company has taken a gratuity policy covering the retirements benefits payable by the company to its employees. The premium paid is charged to revenue.

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Mar 31, 1991

Fixed Assets : No Depreciation has been provided for the year amounting to Rs 96.70 lakhs (Previous Year Rs 91.43 lakhs), calculated on straight line method on Fixed Assets as per the provisions of Section 202 (2) (b) and at the rates specified in Schedule XIV of the Companies Act, 1956.

The total amount of Depreciation that has not been provided for upto 31st March, 1991 is Rs 254.75 lakhs.