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Notes to Accounts of Birla Corporation Ltd.

Mar 31, 2017

- Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities

- Level 2 — Inputs other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly; and

- Level 3 — Inputs which are unobservable inputs for the asset or liability.

External valuers are involved for valuation of significant assets & liabilities. Involvement of external valuers is decided by the management of the company considering the requirements of Ind As and selection criteria include market knowledge, reputation, independence and whether professional standards are maintained.

4 Standards Issued but not yet effective

The standard issued but ot yet effective up to the date of issuance of the Company''s Financial Statements is disclosed below. The Company intends to adopt this Standard when it becomes effective.

- Ind-AS 7 - Statement of Cash Flows

The MCA has notified Companies (Indian Accounting Standards) (Amendment) Rules, 2017 to amend the above Ind-AS''s. The amendment will come into force from accounting period commencing on or after 1st April, 2017. The Company is in the process of assessing the possible impact of Ind-AS 7 : Statement of Cash Flows and will adopt the amendments on the required effective date.

5. Significant Judgments and Key sources of Estimation in applying Accounting Policies

Information about Significant judgments and Key sources of estimation made in applying accounting policies that have the most significant effects on the amounts recognized in the financial statements is included in the following notes:

- Recognition of Deferred Tax Assets : The extent to which deferred tax assets can be recognized is based on an assessment of the probability of the Company''s future taxable income against which the deferred tax assets can be utilized. In addition, significant judgment is required in assessing the impact of any legal or economic limits.

- Useful lives of depreciable/ amortizable assets (tangible and intangible) : Management reviews its estimate of the useful lives of depreciable/ amortizable assets at each reporting date, based on the expected utility of the assets. Uncertainties in these estimates relate to actual normal wear and tear that may change the utility of plant and equipment.

- Classification of Leases : The Company enters into leasing arrangements for various assets. The classification of the leasing arrangement as a finance lease or operating lease is based on an assessment of several factors, including, but not limited to, transfer of ownership of leased asset at end of lease term, lessee''s option to purchase and estimated certainty of exercise of such option, proportion of lease term to the asset''s economic life, proportion of present value of minimum lease payments to fair value of leased asset and extent of specialized nature of the leased asset.

- Defined Benefit Obligation (DBO) : Employee benefit obligations are measured on the basis of actuarial assumptions which include mortality and withdrawal rates as well as assumptions concerning future developments in discount rates, medical cost trends, anticipation of future salary increases and the inflation rate. The Company considers that the assumptions used to measure its obligations are appropriate. However, any changes in these assumptions may have a material impact on the resulting calculations.

- Restoration (including Mine closure), rehabilitation and decommissioning : Estimation of restoration/ rehabilitation/ decommissioning costs requires interpretation of scientific and legal data, in addition to assumptions about probability of future costs.

- Provisions and Contingencies : The assessments undertaken in recognizing provisions and contingencies have been made in accordance with Indian Accounting Standards (Ind AS) 37, ''Provisions, Contingent Liabilities and Contingent Assets''. The evaluation of the likelihood of the contingent events is applied best judgment by management regarding the probability of exposure to potential loss.

- Impairment of Financial Assets : The Company reviews its carrying value of investments carried at amortized cost annually, or more frequently when there is indication of impairment. If recoverable amount is less than its carrying amount, the impairment loss is accounted for.

- Allowances for Doubtful Debts : The Company makes allowances for doubtful debts through appropriate estimations of irrecoverable amount. The identification of doubtful debts requires use of judgment and estimates. Where the expectation is different from the original estimate, such difference will impact the carrying value of the trade and other receivables and doubtful debts expenses in the period in which such estimate has been changed.

- Fair value measurement of financial Instruments : When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be measured based on quoted prices in active markets, their fair value is measured using valuation techniques including the Discounted Cash Flow model. The input to these models are taken from observable markets where possible, but where this not feasible, a degree of judgment is required in establishing fair values. Judgments include considerations of inputs such as liquidity risk, credit risk and volatility.

Notes :

6 Includes Rs, 8.85 in Land and Rs, 915.26 in Building under Co-ownership basis and also Rs, 0.15 being value of investments in Shares of a Private Limited Company.

7 Other Adjustments include adjustment on account of foreign exchange differences pursuant to using the optional exemption available under Para D13AA of Ind AS 101 "First Time Adoption" for continuing with the policy adopted for accounting for exchange difference on the Long Term Foreign Exchange Monetary Items recognized under previous GAAP as described in note no. 38.2 to the financial statement. Accordingly, the amount recapitalized during the year with the Property, Plant and Equipment amounts to Rs, 11.93 (Previous Year capitalized Rs, 2,648.38) .

8 Other Adjustments also include finance costs capitalized during the year on the qualifying assets as required by IND AS 23 Borrowing Costs amounting to Rs, 87.79 (Previous Year Rs, 257.89). (Refer Note No. 36)

9 Refer note no. 45 for information on property, plant and equipment pledged as securities by the Company.

10 Refer note no. 44 for disclosure of contractual commitments for the acquisition of property, plant and equipment .

11 The fair value of the Company''s investment properties as at 1st April 2015, 31st March 2016 and 31st March 2017 are '' 2009.84, '' 2125.65 and '' 2240.48 Lacs respectively. The fair value has been arrived on the basis of valuation performed by an independent valuer, who is valuing these types of investments properties, having appropriate qualifications and recent experience in the valuation of properties in relevant location.

12 The amounts recognized in Statement of Profit and Loss in relation to the investment properties :

13 The fair valuation is based on current prices in the active market for similar properties and rental income of similar type of property in the same locality. The main inputs used are quantum, area, location, demand, restrictive entry to the land and building, age of the building and trend of fair market rent in the locality. This valuation is based on valuations performed by an accredited independent valuer. Fair valuation is based on depreciated open market price method and rental method. The fair value measurement is categorized in level 3 fair value hierarchy.

14 Refer note no. 45 for information on investment property pledged as securities by the Company.

15 Contractual commitments for the acquisition of Investment Property is NIL (Previous Year-31.3.2016 NIL and 1.4.2015 NIL).

19.1 Suspension of Operations was declared of the Company''s Unit Birla Carbide & Gases, Birlapur, West Bengal w.e.f. 29.10.2001. Subsequently, closure of the Unit was declared w.e.f. 31.01.2005. However, Plant & Machinery could not be disposed off due to absence of any Buyer to purchase the same in view of lot of technological developments taken place after commissioning of the Plant. A resolution was passed by Board of Directors of the Company on 4th November 2015 for disposal of assets of the Unit. Currently, there are several interested buyers and it is expected that sale will be completed by December, 2017.The assets of the Unit comprising plant & machineries is presented within total assets of the "unallocated corporate assets” under Segment Reporting.

Non recurring fair value measurements

The fair value of the Plant & Machineries, classified as held for sale, was determined using the sales comparison approach. This is level 2 measurement as per the fair value hierarchy set out in fair value measurement disclosures refer note no.58. The key inputs under this approach are price of the similar Plant & Machineries at the same location, condition and age.

16 Reconciliation of the number of shares at the beginning and at the end of the year

There has been no change/ movements in number of shares outstanding at the beginning and at the end of the year.

17 Terms/ Rights attached to Equity Shares

The Company has only one class of issued shares i.e., Ordinary Shares having par value of Rs, 10 per share. Each holder of the Ordinary Shares is entitled to one vote per share and equal right for dividend. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the ordinary shareholders are eligible to receive the remaining assets of the Company after payment of all preferential amounts, in proportion to their shareholding.

18 Shareholding Pattern with respect of Holding or Ultimate Holding Company

The Company does not have any Holding Company or Ultimate Holding Company.

iv) Rs, 3,997.20 payable in 2 equal installments from May/June 2021 to August/September 2021

v) Rs, 18,000.00 payable in 8 equal installments from November/December 2021 to August/September 2023

vi) Rs, 14,996.40 payable in 6 equal installments from November/December 2023 to February/March 2025

vii) Rs, 12,507.00 payable in 5 equal installments from May/June 2025 to May/June 2026

viii) Rs, 2,488.20 payable in August/September 2026

Rupee Term Loans are secured by first charge on movable and immovable Property, Plant and Equipment & certain intangible Assets of the Company''s Jute Division and land situated at Birlapur and Narkeldanga, ranking pari-passu.

(f) Foreign Currency Loans from Banks are repayable as under:-

Term Loan Rs, 66,220.77 (Rate of Interest LIBOR 1M/3M/6M Plus spread of 150 bps to 175 bps)

i) Rs, 4,608.52 repayable in remaining seven semi-annual installments.

The above loan is secured by first charge on the movable and immovable Property, Plant and Equipment & certain intangible Assets of the Company''s Cement Units at Chanderia (Rajasthan), ranking pari-passu with Debenture holders and other term lenders except Rupee Term Lenders.

ii) Rs, 25,478.75 includes Rs, 5,790.63 repayable in September, 2017, Rs, 8,106.87 repayable in September, 2018 and Rs, 11,581.25 repayable in September, 2019.

iii) Rs, 10,191.50 includes Rs, 2,316.25 repayable in September, 2017, Rs, 3,242.75 repayable in September, 2018 and Rs, 4,632.50 repayable in September, 2019.

iv) Rs, 25,942.00 repayable in 8 equal quarterly installments starting from October 2019 to July 2021.

The above loans are secured by first charge on the movable and immovable Property, Plant and Equipment & certain intangible Assets of the Company''s Cement Division, ranking pari-passu with Debenture holders and other term lenders except Rupee Term Lenders.

19 Finance Lease Obligation

The Company has entered into various finance lease arrangements mainly for land for terms ranging up to 99 years. The legal title to these items vests with the respective lessors. There are no restrictions imposed by lease arrangements. There are no sub-lease arrangements entered in to by the Company for these leases.

The Company has finance lease contracts and the obligation under finance lease are secured by the lessor''s title to the leased assets. Future minimum lease payments under finance lease contracts together with the present value of the net minimum lease payments.

20 Other Claims/Disputes/Demands (being less than Rs,100.00) pending in various legal forums for Sales Tax, Excise Duty & Service Tax, Rates & Taxes, E.S.I., Electricity Duty & Surcharge, Electricity Charges, Export Tax, Entry Tax including interest there on and other claims - Rs,53.44, Rs,331.98, Rs,72.06, Rs, 4.91,Rs, 0.56, Rs, 59.49, Rs, 82.96, Rs, 52.75, Rs, 170.03 (Previous Year - 31st March, 2016 Rs, 44.58, Rs,617.77, Rs, 72.06, Rs,4.91, Rs, 0.56,Rs, 59.49, Rs, 82.96, Rs, 24.56 and Rs, 206.08 (Previous Year - 1st April, 2015 -Rs,111.83, Rs,1101.78, Rs, 72.06, Rs,4.91, Rs, 0.56, Rs, 59.49, Rs, 82.96,Rs, 24.56 and Rs, 209.07) respectively.

21 Disputed amount of Rs,68.61[Paid under protest Rs,68.61] (Previous Year - 31st March, 2016 Rs,68.61[Paid under protest Rs,68.61]) (Previous Year - 1st April, 2015 Rs,68.61[Paid under protest Rs,68.61]) in respect of difference of Fuel Cost Adjustment Charges, Rs,463.60 [Paid under protest Rs,19.77] (Previous Year- 31st March, 2016 Rs,463.60 [Paid under protest Rs,19.77]) (Previous Year - 1st April, 2015 Rs,463.60 [Paid under protest Rs,19.77]) in respect of demand of Water Supply Charges, Rs,355.19 [Paid under protest Rs,137.39] (Previous Year - 31st March, 2016 Rs,355.19 [Paid under protest Rs,137.39]) (Previous Year -1st April,2015 Rs,355.19 [Paid under protest Rs,137.39]) in respect of Surcharge on Electricity, Rs,1965.30 [Paid under protest Rs,414.28] (Previous Year - 31st March,2016 Rs,1804.76 [Paid under protest Rs,377.50]) (Previous Year - 1st April,2015 Rs,1804.76 [Paid under protest Rs,376.00]) in respect of MODVAT/ CENVAT claims, Rs,3283.03 [Paid under protest Rs,1707.32] (Previous Year - 31st March,2016 Rs,4841.98 [Paid under protest Rs,2405.17]) (Previous Year - 1st April,2015 Rs,4516.13 [Paid under protest Rs,2065.36]) in respect of Sales Tax/VAT, Rs,358.35 [paid under protest Rs,24.62] (Previous Year - 31st March, 2016 Rs,2.23 [paid under protest Rs,0.35]) (Previous Year - 1st April, 2015 Rs,NIL [Paid under protest Rs,NIL]) in respect of Entry Tax, Rs,192.17 [Paid under protest Rs,30.19] (Previous Year - 31st March, 2016 Rs,12.99 [Paid under protest Rs,2.00]) (Previous Year - 1st April, 2015 Rs,12.99 [Paid under protest Rs,2.00]) in respect of Service Tax, Rs,3569.55 [Paid under protest Rs,3751.51] (Previous Year - 31st March, 2016 Rs,3569.55 [Paid under protest Rs,3751.51]) (Previous Year - 1st April, 2015 Rs,3231.51 [Paid under protest Rs,3751.51] ) in respect of Income Tax, Rs,3686.37 [Paid under protest Rs,272.36] (Previous Year - 31st March,2016 Rs,3756.97 [Paid under protest Rs,503.13]) (Previous Year - 1st April, 2015 Rs,2887.32 [Paid under protest Rs,240.32] ) in respect of Excise Duty, Rs,29.08 [Paid under protest Rs,10.76] (Previous Year - 31st March, 2016 Rs,29.08 [Paid under protest Rs,10.76]) (Previous Year - 1st April, 2015 Rs,29.08 [Paid under protest Rs,10.76]) in respect of Land Diversion Tax impose by SDO Raghuraj Nagar, Rs,29.70 [Advance paid Rs,29.70] (Previous Year - 31st March, 2016 Rs, 29.70 [Advance paid Rs, 29.70]) (Previous Year - 1st April, 2015 Rs, 29.70 [Advance paid Rs, 29.70]) in respect of octroi, Rs, 208.20 [Paid under protest Rs, 15.62] (Previous Year - 31st March, 2016 Rs,NIL [Paid under protest Rs,NIL]) (Previous Year - 1st April, 2015 Rs,NIL [Paid under protest Rs,NIL]) in respect of custom duty and Rs,2.41 [Paid under protest Rs,2.41] (Previous Year - 31st March, 2016 Rs,NIL [Paid under protest Rs,NIL]) (Previous Year - 1st April, 2015 Rs,NIL [Paid under protest Rs,NIL]) in respect of other claims, which have not been provided for, as the matters are subjudice.

22 In respect of the matters in note no. 42.1 to 42.3, future cash outflows are determinable only on receipt of judgements/decisions pending at various forums/ authorities. Furthermore, there is no possibilities of any reimbursements to be made to the company from any third party.

23. Operating leases

24 As Lessee

The company''s significant leasing arrangements are in respect of operating leases for premises (residential, office, stores, godown) etc. These leasing arrangements which are cancellable ranging between 11 months and 10 years generally, or longer, and are usually renewable by mutual consent on mutually agreeable terms. The aggregate lease rentals payable are charged as rent in the Statement of Profit and Loss. The company has also entered into agreement to take certain land on operating lease for manufacturing facilities from a third party. The lease arrangement is for 33 years. The lease rent of ''396.63 (Previous Year ''187.41) on such lease is included in Rent.

25 The Company has entered into leasing agreements under operating lease. Land for original lease period ranging upto 33 years. Amortisation of leasehold land included in the statement of profit and loss for the year is '' 1,477.66 (previous year '' 1,253.75).

26 As Less or

27 The Company leases out its investment property on operating lease basis on cancellable basis. Rental income earned and direct operating expenses incurred on property letting on lease has been disclosed in note no 6.

28 Defined Benefit Plan :

The following are the types of defined benefit plans.

29 Gratuity Plan

Every employee who has completed five years or more of service is entitled to gratuity on terms not less favorable than the provisions of the Paymet of Gratuity Act, 1972. The present value of defined obligation and related current cost are measured using the Projected Unit Credit Method with actuarial valuation being carried out at Balance Sheet date.

30 Pension Plan

Pension is payable to certain categories of employees who are eligible under the Company''s Pension Scheme.

31 Provident Fund

Provident Fund (other than government administered) as per the provisions of the Employees Provident Funds and Miscellaneous Provisions Act, 1952.

32 Risk Exposure Defined Benefit Plans

Defined benefit plans expose the Company to actuarial risks such as: Interest Rate Risk, Salary Risk and Demographic Risk.

a) Interest rate risk: The defined benefit obligation calculated uses a discount rate based on government bonds. If the bond yield falls, the defined benefit obligation will tend to increase.

b) Salary risk : Higher than expected increases in salary will increase the defined benefit obligation.

c) Demographic risk : This is the risk of variability of results due to unsystematic nature of decrements that includes mortality, withdrawal, disability and retirement. The effect of these decrements on the defined benefits obligations is not straight forward and depends on the combination of salary increase, discount rate and vesting criteria. It is important not to overstate withdrawals because in the financial analysis the retirement benefit of the short career employee typically costs less per year as compared to a long service employee.

33 Reconciliation of the net defined benefit (asset)/ liability

The following table shows a reconciliation from the opening balances to the closing balances for the net defined benefit (asset)/ liability and its components :

The Gratuity Scheme is invested in a Group Gratuity-cum-Life Assurance Cash accumulation policy offered by Life Insurance Corporation (LIC) of India, Cap Assure Group Gratuity Scheme offered by SBI Life Insurance Co. Limited, HDFC Life Group variable employee benefit plan offered by HDFC Standard LIfe Insurance Company Limited, India First New Corporate Benefit plan for gratuity offered by India First Life Insurance Company Limited and Bajaj Allianz Group Employee Care plan offered by Bajaj Allianz Life Insurance Company Ltd. The information on the allocation of the fund into major asset classes and expected return on each major class are not readily available.

34 Asset-Liability Matching Strategy

The Company''s investment is in Cash Accumulation Plan/Traditional Plan of various Insurance Companies, the investment are being managed by these insurance companies and at the yearend interest is being credited to the fund value. The company has not changed the process used to manage its risk from previous periods . The company''s investment are fully secured and would be sufficient to cover its obligations.

35. The Board of Directors of the Company at its meeting held on 25th July, 2013 had approved the Scheme of Amalgamation to amalgamate Talavadi Cements Limited, a 98% subsidiary with Birla Corporation Limited with an appointed date of 1st April, 2013. The Scheme is presently pending for the approval of the Hon''ble High Court, Kolkata.

36. Pursuant to the Share Purchase Agreement ("Agreement”), the company has acquired 100% equity shares of Reliance Cement Company Private Limited ("RCCPL”) from Reliance Infrastructure Limited on 22nd August,2016 at an enterprise valuation of '' 4,80,000. A sum of '' 2,25,352 has been paid/provided towards purchase consideration of Shares till 31st March, 2017 which may be further adjusted based on terms & condition of the agreement. The company does not envisage any material impact on account of above and there will not be any impact on the Statement of Profit and Loss.

37. In view of decision of Hon''ble Supreme Court dated 24th September 2014, the allocation of Bikram Coal Block to the company was cancelled. Subsequently, the Government promulgated The Coal Mines (Special Provisions) Act, 2015, which inter alia provides for compensation to prior allottees against expenditure incurred on the cancelled coal block. The company has submitted its claim for compensation of amount incurred on Coal Block amounting to '' 1,609.54. Consequential adjustment shall be made on settlement of the claim.

38. Certain Trade Receivables, Loans & Advances and Trade Payables are subject to confirmation. In the opinion of the management, the value of Trade Receivables and Loans & Advances on realization in the ordinary course of business, will not be less than the value at which these are stated in the Balance Sheet.

39 The Company''s Unit Soorah Jute Mills is under Suspension of Operations since 29th March, 2004.

40 The Company''s Unit Birla Vinoleum and Auto Trim Division at Birlapur, are under Suspension of Operations since 18th February, 2014.

41 In respect of mining matter of Chanderia before the Hon''ble Supreme Court, a comprehensive report has been submitted by Central Building Research Institute (CBRI) on full scale mining. Last hearing was held on 06-09-2016. Next date of hearing has not been fixed as yet.

42. Transition to Ind AS

43 Basis for Preparation

For all period up to and including the year ended 31st March, 2016, the Company has prepared its financial statements in accordance with generally accepted accounting principles in India (Indian GAAP). These financial statements for the year ended 31st March, 2017 are the Company''s first annual IND AS financial statements and have been prepared in accordance with IND AS.

The accounting policies set out in Note 3 have been applied in preparing the financial statements for the year ended 31st March 2017, the comparative information presented in these financial statements for the year ended 31st March, 2016 and in the preparation of an opening Ind AS balance sheet at 1st April, 2015 (the date of transition). This note explains the principal adjustments made by the Company in restating its financial statements prepared in accordance with previous GAAP, and how the transition from previous GAAP to Ind AS has affected the Company''s financial position, financial performance and cash flows.

44Exceptions and Exemptions Applied

IND AS 101 "First-time adoption of Indian Accounting Standards” (hereinafter referred to as Ind AS 101) allows first time adopters certain mandatory exceptions and optional exemptions from the retrospective application of certain IND AS, effective for 1st April, 2015 opening balance sheet. In preparing these Standalone financial statements, the Company has applied the below mentioned optional exemptions and mandatory exceptions.

45 Optional Exemptions Availed

a. Business Combinations

Ind AS 101 provides the option to apply Ind AS 103 prospectively from the transition date or from a specific date prior to the transition date. This provides relief from full retrospective application that would require restatement of all business combinations prior to the transition date.

The Standard has not been applied to acquisitions of subsidiaries, which are considered businesses for Ind AS, or of interests in associates that occured before the transition date i.e., 1st April, 2015.

b. Property Plant and Equipment, Intangible Assets and Investment Properties

As permitted by para D5-D8B of Ind AS 101, the Company has elected to continue with the carrying values under previous GAAP for all the items of property, plant and equipment. The same election has been made in respect of intangible assets and investment property also.

c. Determining whether an arrangement contains a Lease

Para D9-D9AA of Ind AS 101 includes an optional exemption that permits an entity to apply the relevant requirements in Appendix C of Ind AS 17 "Leases” for determining whether an arrangement existing at the date of transition contains a lease by considering the facts and circumstances existing at the date of transition (rather than at the inception of the arrangement). The Company has applied the above transitional provision and has assessed all the arrangements at the date of transition.

d. Investments in Subsidiaries and Associates

As permitted by para D14 & D15 of Ind AS 101, the Company has elected to measure the investments in subsidiaries and associates at Deemed Cost calculated at the previous GAAP carrying amount as on the date of transition, as the company has elected to measure such investments at Cost under Ind AS 27 "Separate Financial Statements”.

e. Designation of previously recognized financial instruments

Para D19B of Ind AS 101 permits an entity to designate particular investments in equity instruments as at fair value through other comprehensive income (FVOCI) based on facts and circumstances at the date of transition to Ind AS (rather at initial recognition). The Company has opted to avail this exemption to designate its investments in equity instruments (other than investment in subsidiaries and associates) as FVOCI on the date of transition.

f. Non-current Assets held for Sale and Discontinued Operations

As per Para D35AA a first time adopter have an option of measuring the non-current assets that meet the criteria of held for sale at lower of the carryin amount and fair value less cost to sales at the date of transition and recognize the difference of the amount so calculated and the previous GAAP carrying amount directly in retained earnings. The Company has elected to adopt this exemption.

46 Mandatory Exceptions

a. Estimates

As per para 14 of Ind AS 101, an entity''s estimates in accordance with Ind AS at the date of transition to Ind AS at the end of the comparative period presented in the entity''s first Ind AS financial statements, as the case may be, should be consistent with estimates made for the same date in accordance with the previous GAAP unless there is objective evidence that those estimates were in error. However, the estimates should be adjusted to reflect any differences in accounting policies.

As per para 16 of the standard, where application of Ind AS requires an entity to make certain estimates that were not required under previous GAAP, those estimates should be made to reflect conditions that existed at the date of transition or at the end of the comparative period. The Company''s estimates under Ind AS are consistent with the above requirement. Key estimates considered in preparation of the financial statement that were not required under the previous GAAP are listed below :

- Fair Valuation of financial instruments carried at FVTPL and/ or FVOCI.

- Fair Valuation of Biological Assets measured at fair value less cost to sell.

- Impairment of financial assets based on the expected credit loss model.

- Determination of the discounted value for financial instruments carried at amortized cost.

- Discounted value of mines restoration liability.

b. De-recognition of financial assets and liabilities

As per para B2 of Ind AS 101, an entity should apply the derecognition requirements in Ind AS 109, "Financial Instruments”, prospectively for transactions occurring on or after the date of transition to Ind AS. However, para B3 gives an option to the entity to apply the derecognition requirements from a date of its choice if the information required to apply Ind AS 109 to financial assets and financial liabilities derecognized as a result of past transactions was obtained at the initially accounting for those transactions. The company has elected to apply the derecognition provisions of Ind AS 109 prospectively from the date of transition to Ind AS.

c. Classification and measurement of financial assets

Para B8 - B8C of Ind AS 101 requires an entity to assess classification of financial assets on the basis of facts and circumstances existing as on the date of transition. Further, the standard permits measurement of financial assets accounted at amortized cost based on facts and circumstances existing at the date of transition if retrospective application is impracticable.

Accordingly, the company has determined the classification of financial assets based on facts and circumstances that exist on the date of transition. Measurement of the financial assets accounted at amortized cost has been done retrospectively.

47 Transition to Ind AS - Reconciliations

The following reconciliations provide a quantification of the effect of significant differences arising from the transition from previous GAAP to Ind AS as required under Ind AS 101 :

1. Reconciliation of material items of Balance sheet as at 1st April, 2015 (Transition Date) and as at 31st March, 2016

2. Reconciliation of Statement of Profit & Loss for the year ended 31st March, 2016

3. Reconciliation of Equity as at 1st April, 2015 and as at 31st March, 2016

4. Adjustments to Statement of Cash Flows

The presentation requirements under Previous GAAP differs from Ind AS, and hence, Previous GAAP information has been regrouped for ease of reconciliation with Ind AS. The Regrouped Previous GAAP information is derived from the Financial Statements of the Company prepared in accordance with Previous GAAP.

48 Explanations to the material adjustments made in the process of IND AS transition from previous GAAP

a. Fair valuation of investments

Under the Indian GAAP, investments in equity instruments and mutual funds were classified as long-term investments or current investments based on the intended holding period and reliability. Long-term investments were carried at cost less provision for other than temporary decline in the value of such investments. Current investments were carried at lower of cost and fair value. Under Ind AS, these investments are required to be measured at fair value. The resulting fair value changes of these investments (other than equity instruments designated as at FVOCI) have been recognized in retained earnings as at the date of transition and subsequently in the profit or loss for the year ended 31st March 2016.

Fair value changes with respect to investments in equity instruments designated as at FVOCI have been recognized in FVOCI - Equity investments reserve as at the date of transition and subsequently in the other comprehensive income for the year ended 31st March 2016.

b. Deferred Tax

Indian GAAP requires deferred tax accounting using the income statement approach, which focuses on differences between taxable profits and accounting profits for the period. Ind AS 12 requires entities to account for deferred taxes using the balance sheet approach, which focuses on temporary differences between the carrying amount of an asset or liability in the balance sheet and its tax base. The application of Ind AS 12 approach has resulted in recognition of deferred tax on new temporary differences which was not required under Indian GAAP. In addition, the various transitional adjustments lead to temporary differences. Deferred tax adjustments are recognized in correlation to the underlying transaction either in retained earnings or a separate component of equity.

c. Dividend

Under Indian GAAP, proposed dividends including Dividend Distribution Taxes (DDT) are recognized as a liability in the period to which they relate, irrespective of when they are declared. Under Ind AS, a proposed dividend is recognized as a liability in the period in which it is declared by the company (usually when approved by shareholders in a general meeting) or paid.

Since declaration of dividend occurs after period end in the Company, the Provision for proposed dividend has been derecognized against retained earnings on 1st April 2015 and Liabilities recognized in the year ended 31st March, 2016.

d. Restoration (including Mine closure), rehabilitation and decommissioning

Under IND AS Restoration/ Rehabilitation/ Decommissioning costs are provided for in the accounting period when the obligation arises based on the net present value of the estimated future costs of restoration to be incurred. Under Indian GAAP, the above obligation is not required to be discounted to its present value.

e. Re-Classifications

The Company has done the following reclassifications as per the requirements of Ind-AS :

i) Assets / liabilities which do not meet the definition of financial asset / financial liability have been reclassified to other asset / liability.

ii) The Company has re-classified certain leasehold land from Property Plant & Equipment to Mining Rights under Intangible Assets and Prepayment Lease Rental under operating lease.

iii) Under Indian GAAP, Live Stock were presented under Property,Plant & Equipment being measured at cost.Under IND AS the same have been reclassified from Property,Plant & Equipment to Biological Assets other than bearer plants and measured at fair value less cost to sale.

iv) Under Indian GAAP, investment properties were presented as part of non-current investments. Under Ind AS, investment properties have been separately presented on the face of the balance sheet.

v) Remeasurement gain/loss on long term employee defined benefit plans are re-classified from statement of profit and loss to OCI.

vi) The Company has re-classified unpaid dividend balance form cash and cash equivalents to other bank balances.

vii) Excise duty on sales was earlier netted off with Sales, has now been presented separately.

f. Long Term Borrowings

Under Indian GAAP, the Company accounted for long term borrowings measured at transaction value. Under Ind AS, the Company has recognized the long term borrowings at amortized cost using effective interest rate (EIR).

g. Forward Contract

Under IND AS mark to market gain/loss on restatement of forward contract as at the reporting date has been recognized in the statement of profit & loss.

h. Leases

Under Ind AS, where the payments to the less or are structured to increase in line with expected general inflation to compensate for the less or’s expected inflationary cost increases, straight lining of lease is not required. The same was required under AS-19.

The Company has initially recognized security deposit paid to the less or at fair value and subsequently at amortized cost as per Ind AS 109.

i. Expected Credit Loss Model

Ind-AS 109 requires to recognize loss allowances on trade receivable and other financial assets of the Company, at an amount equal to the lifetime expected credit loss or the 12 month expected credit loss based on the increase in the credit risk.

j. Deferred Revenue

Under India GAAP, grants received from government agencies against specific fixed assets (Property, Plant and Equipment) are adjusted to the cost of the assets. Under IND AS the same has been presented as deferred revenue being amortized in the statement of profit & loss on a systematic basis.

k. Leases/Depreciation and Amortization Expenses/Inventory

Under India GAAP, lease agreement to use land was excluded from accounting of leases under AS 19. Under IND AS, use of land is not excluded from accounting of leases. Due to the above, measurement amount of lease, operating or finance has been changed resulting into change in depreciation and amortization expenses and corresponding change in the inventory valuation.

49. Fair Value Hierarchy

The following are the judgments and estimates made in determining the fair values of the financial instruments that are (a) recognized and measured at fair value and (b) measured at amortized cost and for which fair value are disclosed in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the company has classified its financial instruments into the three levels of fair value measurement as prescribed under the Ind AS 113 "Fair Value Measurement”. An explanation of each level follows underneath the tables.

50 Liquidity Risk

The Company determines its liquidity requirement in the short, medium and long term. This is done by drawings up cash forecast for short term and long term needs.

The Company manage its liquidity risk in a manner so as to meet its normal financial obligations without any significant delay or stress. Such risk is managed through ensuring operational cash flow while at the same time maintaining adequate cash and cash equivalent position. The management has arranged for diversified funding sources and adopted a policy of managing assets with liquidity monitoring future cash flow and liquidity on a regular basis. Surplus funds not immediately required are invested in certain mutual funds and fixed deposit which provide flexibility to liquidate. Besides, it generally has certain undrawn credit facilities which can be assessed as and when required; such credit facilities are reviewed at regular basis.

d. The amounts are gross and undiscounted, and include contractual interest payments and exclude the impact of netting agreements (if any). The interest payments on variable interest rate loans in the tables above reflect market forward interest rates at the respective reporting dates and these amounts may change as market interest rates change. The future cash flows on derivative instruments may be different from the amount in the above tables as exchange rates change. Except for these financial liabilities, it is not expected that cash flows included in the maturity analysis could occur significantly earlier, or at significantly different amounts. When the amount payable is not fixed, the amount disclosed has been determined with reference to conditions existing at the reporting date.

51 Market Risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises four type of risks : Commodity Price Risk, Foreign Exchange Risk, Interest Rate Risk and Other Price Risk.

52 Commodity Price Risk

The Company primarily imports coal, pet coke, gypsum and raw jute. It is exposed to commodity price risk arising out of movement in prices of such commodities. Such risks are monitored by tracking of the prices and are managed by entering into fixed price contracts, where considered necessary.

53 Foreign Currency Risk

The Company has Foreign Currency Exchange Risk on imports of input materials, Capital Equipment(s) and also Borrows funds in foreign currency for its business. The Company evaluates the impact of foreign exchange rate fluctuations by assessing its exposure to exchange rate risks. Certain transactions of the Company act as a natural hedge as a portion of both assets and liabilities are denominated in similar foreign currencies. For the remaining exposure to foreign exchange risk, the Company adopts a policy of selective hedging based on risk perception of the management using derivative, wherever required, to mitigate or eliminate the risk.

The following table demonstrates the sensitivity in the USD, EUR and JPY to the Indian Rupee with all other variables held constant.

Terms and Conditions of transactions with Related Parties :

The sale to and purchase from Related Party are made in the normal course of business and on terms equivalent to those that prevail in arm''s length transactions. The Loans and Advances as well as Corporate Gurantee isuued to Related Parties are on terms equivalent to those that prevail in arm''s length transactions. Outstanding Balances at the yearend are unsecured and settlement occurs in cash for the year ended 31st March, 2017, the Company has recorded the receivable relating to amount due from Related Parties net of impairment. This assessment is undertaken each Financial Year through examining the Financial position of the Related Parties and the market in which the Related Party operates.

*The figures of the Relience Cement Company Pvt. Ltd. has been taken w.e.f. 22.08.2016.

Note: 1. None of the subsidiaries have reporting period different from the holding company.

54. None of the above mentioned subsidiaries are foreign subsidiaries.

55. a) Names of subsidiaries which are yet to commence operations.

i. M/s Lok Cements Limited.

ii. M/s Birla Cement (Assam) Limited.

iii. M/s M. P. Birla Group Services Pvt. Ltd.

b) Names of subsidiaries which have been liquidated or sold during the year : NIL.


Mar 31, 2015

1.1 Contingent Liabilities not provided for- 2014-15 2013-14

(a) Claims/Disputes/Demands not acknowledged as debts -

i) Demand notice for levying sales tax on packing material at the rate applicable on cement. Writ petition has 161 07 161 07 been filed and the matter is pending before Hon''ble High Court, Chandigarh.

ii) Demand for Water Supply Charges under Rajasthan Irrigation & Drainage Act, 1954. Writ petition has been 147 16 147 16 filed before the Hon''ble High Court, Rajasthan which has granted stay in the matter.

iii) Additional U. R Sales Tax demanded by enhancing the value of cement. The case has been decided by Tribunal 146 40 146 40 in Company''s favour. Department has filed revision petition before Hon''ble High Court, Allahabad against order of the Tribunal. The High Court has remanded the case to UP Trade Tax Tribunal.

iv) Demand for interest on delayed payment of Entry Tax raised by the U.R Trade Tax Department, Allahabad. 132 11 132 11 Writ petition has been filed before the Hon''ble High Court, Allahabad which has granted stay in the matter.

v) Cenvat Credit taken on Goods Transporting Agency service on the basis of TR-6 challan disallowed. Appeal 138 36 138 36 filed before the Custom, Excise & Service Tax Appellate Tribunal, New Delhi and stay has been granted in the matter.

vi) Stamp Duty for registration/execution of deed of certain Limestone Mining Lease. The matter is pending before 604 80 604 80 the Hon''ble Supreme Court.

vii) Renewable Energy Surcharge on account of shortfall of energy purchase from renewable energy sources as 1726 67 1726 67 per Rajasthan Electricity Regulatory Commission notification dt. 23.03.2007. The matter is pending before the Hon''ble High Court, Rajasthan.

viii) Appeal filed by the Excise Department before Custom, Excise & Service Tax Appellate Tribunal, New Delhi 141 93 141 93 on account of allowance of tolerance limit in weighment of packed cement which was earlier allowed in favour of the Company.

ix) Demand of penalty by Sub Divisional Officer, Raghuraj Nagar, for alleged impermissible mining in Village 1160.00 1160.00 Naina. Writ Petition has been filed and stay has been granted by Hon''ble M.R High Court, Jabalpur.

x) Demand under Income Tax Act, 1961 for Assessment Year 2011-12 & 2012-13, the matter is pending before 2632 09 2612 01 Commissioner of Income Tax (Appeals).

xi) Demand for Entry Tax and Interest there on under U.R VAT Act. Case is pending before Hon''ble Supreme 3349 99 2912 01 Court.

xii) Demand of House Tax under Rajasthan Municipalities (Land and Building Tax) Rules 1961 raised by Municipal 251 73 251 73 Board, Chittorgarh for the period 1987 to 2006. The matter is pending before Hon''ble High Court, Rajasthan.

xiii) Demand for Education cess by the Municipal Corporation, Satna. Appeal filed and pending before Hon''ble 118 29 118 29

M.R High Court, Jabalpur.

xiv) Entry Tax as per The West Bengal Tax on Entry of Goods into Local Areas Act, 2012 on the entry of goods in 708 56 386 64 the state of West Bengal. Matter is pending before Kolkata High Court.

xv) Hon''ble High Court, Rajasthan, levied a compensation for alleged damage to the Chittorgarh Fort. Special 450 00 450 00 Leave Petition has been filed before the Hon''ble Supreme Court and stay has been granted in the matter.

xvi) Cenvat Credit taken on Steel Items disallowed by Excise Authority which has demanded its recovery together 482.76 448.67 with interest. Appeal filed before the Custom Excise & Service Tax Appellate Tribunal, New Delhi. The Tribunal has remanded the case to Commissioner, Central Excise, Jaipur.

xvii) Other Claims/Disputes/Demands (being less than Rs. 100.00) pending in various legal forums for Sales Tax, Excise Duty & Service Tax, Rates & Taxes, E.S.I., Electricity Duty & Surcharge, Electricity Charges, Export Tax and other claims - Rs. 111.83, Rs. 624.18, Rs. 72.06, Rs. 4.91, Rs. 0.56, Rs. 59.49, Rs. 82.96, Rs. 209.07 (Previous Year Rs. 130.86, Rs. 699.85, Rs. 72.06, Rs. 4.91, Rs. 0.56, Rs. 99.15, Rs. 82.96 and Rs. 221.20) respectively.

(b) Disputed amount of Rs. 68.61 [Paid under protest Rs. 68.61] (Previous Year Rs. 68.61 [Paid under protest Rs. 68.61]) in respect of difference of Fuel Cost Adjustment Charges, Rs. 463.60 [Paid under protest Rs. 75.00] (Previous Year Rs. 463.52 [Paid under protest Rs. 75.00]) in respect of demand of Water Supply Charges, Rs. 355.19 [Paid under protest Rs. 137.39] (Previous Year Rs. 355.19 [Paid under protest Rs. 137.39]) in respect of Surcharge on Electricity, Rs. 6790.62 [Paid under protest Rs. 4099.71] (Previous Year Rs. 6790.62 [Paid under protest Rs. 4099.71]) in respect of demand of Royalty on Limestone including interest thereon, Rs. 1799.60 [Paid under protest Rs. 376.00] (Previous Year Rs. 1783.18 [Paid under protest Rs. 370.00]) in respect of MODVAT/ CENVAT claims, Rs. 4516.13 [Paid under protest Rs. 2065.36] (Previous Year Rs. 4047.62 [Paid under protest Rs. 1579.91]) in respect of Sales Tax/ VAT, Rs. 24.56 [Paid under Protest Rs. 12.28] (Previous Year Rs. 24.56) [paid under protest Rs. 12.28] in respect of interest on delayed payment of Entry Tax, Rs. 12.99 [Paid under protest Rs. 2.00] (Previous Year Rs. 12.99 [Paid under protest Rs. 2.00]) in respect of Service Tax, Rs. 3231.51 [Paid under protest Rs. 3231.51] (Previous Year Rs. 4506.15 [Paid under protest Rs. 3651.51]) in respect of Income Tax, Rs. 2887.32 [Paid under protest Rs. 240.32] (Previous Year Rs. 2502.26 [Paid under protest Rs. 22.27]) in respect of Excise Duty have not been provided for as the matters are subjudice, Rs. 29.08 [Paid under protest Rs. 10.76] (Previous Year NIL [Paid under protest NIL]) in respect of Land Diversion Tax imposed by Sub-Divisional Officer Raghuraj Nagar and NIL [Paid under protest NIL] (Previous Year Rs. 0.33 [Paid under protest Rs. 0.33]) in respect of Other claims.

In respect of above matters, future cash outflows are determinable only on receipt of judgements/decisions pending at various forums/authorities.

(c) Bills discounted with Banks remaining outstanding - Rs. 452.55 (Previous Year Rs. 789.81).

(d) Amount of Customs Duty including interest thereon, which may have to be paid on account of non-fulfillment of Export Obligation under EPCG Scheme - Rs. 183.53 (Previous Year Rs. 408.01).

1.2 Commitments Capital Commitments

Estimated amount of contracts remaining to be executed on Capital Account (Net of advances) and not provided for Rs. 4666.91 (Previous Year Rs. 6529.97).

1.3 Derivative Instruments and Unhedged Foreign Currency Instruments

(a) Outstanding Forward/ Future Contracts booked for the purpose of hedging receivables/ firm commitments are USD/INR 12.98 (Previous Year USD/INR 34.79) and payables/ firm commitments are USD/INR 190.00 (Previous Year USD/INR 357.66 ) and EURO/INR 0.00 (Previous Year EURO/INR 14.31). Outstanding Interest rate Swap Contracts booked for the purpose of hedging LIBOR against payables are USD Nil (Previous Year USD 3.14)

(b) Unhedged foreign currency receivables are USD 3.72 (Previous Year USD 3.12) and EURO 0.00 (Previous Year EURO 0.89 ) and payables are USD 1131.23 (Previous Year USD 972.64) and EURO 12.77 (Previous Year EURO 2.67).

1.4 Dues to Micro,Small and Medium Enterprises

The Company has made payments to Micro, Small and Medium Enterprises (MSMEs) as defined in the Micro, Small, Medium Enterprises Development Act, 2006, within the appointed date during the year and there are no MSMEs to whom the Company owes dues on account of principal amount along with interest at the Balance Sheet date, hence no additional disclosures have been made. The above information has been determined to the extent such parties have been identified on the basis of information available with the Company.

(ix) The Gratuity Scheme is invested in a Group Gratuity-cum-Life Assurance Cash accumulation policy offered by Life Insurance Corporation (LIC) of India and Cap Assure Group Gratuity Scheme offered by SBI Life Insurance Co. Ltd. The information on the allocation of the fund into major asset classes and expected return on each major class are not readily available. The expected rate of return on plan assets is based on market expectations, at the beginning of the period, for returns over the entire life of the related obligation.

(x) The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

(xi) The Company expects to contribute Rs. 1000 (Previous Year Rs. 1000) to its gratuity fund in 2015-16.

(xii) In respect of provident funds in the nature of defined benefit plans contribution amounting to Rs. 543.11 (Previous Year Rs. 618.02) and the accrued past service liability of NIL (Previous Year NIL) as valued by the actuary is recognized as an expense and included in ''Employee Benefits Expense''.

1.5 Charity & Donation includes political donation Rs. 25.00 (Previous Year Rs. 100.00) paid to Bharatiya Janata Party and NIL (Previous Year Rs. 100.00) paid to Indian National Congress.

1.6 The Board of Directors of the Company at its meeting held on 25th July, 2013 had approved the Scheme of Amalgamation to amalgamate Talavadi Cements Limited, a 98% subsidiary with Birla Corporation Limited with an appointed date of 1st April, 2013. The Scheme is presently pending for the approval of the Hon''ble High Court, Kolkata.

1.7 In view of decision of Hon''ble Supreme Court dated 24th September 2014, the allocation of Bikram Coal Block to the company was cancelled. Subsequently, the Government promulgated The Coal mines (Special Provisions) Ordinance, 2014, which inter alia provides for compensation to prior allottees against expenditure incurred on the cancelled coal block. The company has submitted its claim for compensation of amount incurred on Coal Block amounting to Rs. 1609.54 (Rs. 1211.40 appearing as "Other Current Assets" in note no. 2.13 and Rs. 398.14 as Fixed Assets in note no. 2.10). Consequential adjustment shall be made on settlement of the claim.

1.8 There being uncertainties in realization from Insurance Claims, the same are accounted for on settlemenVrealization.

1.9 Certain Trade Receivables, Loans and Advances and Creditors are subject to confirmation.

1.10 a) The Company''s Unit Soorah Jute Mills is under Suspension of Operations since 29th March, 2004.

b) The Company''s Units Birla Vinoleum and Auto Trim Division, at Birlapur, are under Suspension of Operations since 18th February, 2014.

c) In respect of mining matter of Chanderia before the Hon''ble Supreme Court, a comprehensive report has been submitted by Central Building Research Institution (CBRI) on full scale mining. The hearing fixed on 6th May, 2015 did not take place and the date of next hearing is yet to be decided.

1.11 Liability in respect of compensation/penalty, if any, for non-compliance of Jute Packaging Materials (Compulsory use of Packaging Commodities) Act, 1987 up to 30th June, 1997 being unascertainable shall be accounted for as and when settled.

B) Secondary Segment Information

The Company operates mainly in the Indian market and the export turnover being 1.73% (Previous year 2.15%) of the external sales of the Company, there are no reportable geographical segments.

C) Other Disclosures

The Company''s operations predominantly relate to Cement and other products are Jute Goods, Auto Trims and Steel Castings. Accordingly, these business segments comprise the primary basis of segmental information set out in these financial statements

Inter-segment transfers are based on prevailing market prices except for Iron & Steel Castings which is based on cost plus profit.

The accounting policies adopted for segment reporting are in line with the accounting policy of the Company.

1.12 Figures for the previous year have been regrouped wherever necessary.


Mar 31, 2014

For the year ended For the year ended 31st March, 2014 31st March, 2013

1.1 Contingent Liabilities not provided for - 2013-14 2012-13

(a) Claims/Disputes/Demands not acknowledged as debts- - -

i) Demand notice for levying sales tax on packing material at the rate applicable on cement. Writ petition has been filed and the matter is pending before Hon''ble High Court, Chandigarh. 161.07 161.07

ii) Demand for Water Supply Charges under Rajasthan Irrigation & Drainage Act, 1954. Writ petition has been filed before the Hon''ble High Court, Rajasthan which has granted stay in the matter. 147.16 147.16

iii) Additional U. R Sales Tax demanded by enhancing the value of cement. The case has been decided by Tribunal in Company''s favour. Department has filed revision petition before Hon''ble High Court, Allahabad against order of the Tribunal. The High Court has remanded the case to UP Trade Tax Tribunal. 146.40 146.40

iv) Demand for interest on delayed payment of Entry Tax raised by the U.R Trade Tax Department, Allahabad. Writ petition has been filed before the Hon''ble High Court, Allahabad which has granted stay in the matter. 132.11 132.11

v) Cenvat Credit taken on Goods Transporting Agency service on the basis of TR-6 challan disallowed. Appeal filed before the Custom Excise & Service Tax Appellate Tribunal, New Delhi and stay has been granted in the matter. 138.36 190.94

vi) Excise Duty rebate of Rs. 969.13 received in earlier year by a Unit of the Company has been contested and disallowed by the Excise Authorities, which has demanded its recovery together with interest, after the matter was remanded to it by the Hon''ble Supreme Court. The company is contemplating to file appeal before the Custom, Excise & Service Tax Appellate Tribunal. 2478.76 2304.32

vii) Stamp Duty for registration/ execution of deed of certain Limestone Mining Lease. The matter is pending before the Hon''ble Supreme Court. 604.80 777.60

viii) Renewable Energy Surcharge on account of shortfall of energy purchase from renewable energy sources as per Rajasthan Electricity Regulatory Commission notification dt. 23.03.2007. The matter is pending before the Hon''ble High Court, Rajasthan. 1726.67 1726.67

ix) Appeal filed by the Excise Department before Custom Excise & Service Tax AppellateTribunal, New Delhi on account of allowance of tolerance limit in weighment of packed cement which was earlier allowed in favour of the Company. 141.93 141.93

x) Demand of penalty by Sub Divisional Officer, Raghuraj Nagar, for alleged impermissible mining in Village Naina. Writ Petition has been filed and stay has been granted by Hon''ble M. R High Court, Jabalpur. 1160.00 1160.00

xi) Demand under Income Tax Act, 1961 for Assessment Year 2011 -12, the matter is pending before Commissioner of Income Tax (Appeals). 2612.01 Nil

xii) Demand for Interest on Entry Tax under U.R VAT Act. Case is pending before Hon''ble Supreme Court. 2912.01 2474.03

xiii) Demand of House Tax under Rajasthan Municipalities (Land and Building Tax) Rules 1961 raised by Municipal Board, Chittorgarh for the period 1987 to 2006. The matter is pending before Hon''ble High Court, Rajasthan. 251.73 251.73

xiv) M. R VAT on freight charges incurred in the state of Madhya Pradesh. Appeal filed and pending before the Hon''ble MR High Court, Jabalpur. 433.27 159.44

xv) Demand for Education cess by the Municipal Corporation, Satna. Appeal filed and pending before Hon''ble M. R High Court, Jabalpur. 118.29 97.41

xvi) Entry Tax as per The West Bengal Tax on Entry of Goods into Local Areas Act, 2012 on the entry of goods in the state of West Bengal. Matter is pending before Hon''ble High Court, Kolkata. 386.64 124.40

xvii) Hon''ble High Court, Rajasthan, levied a compensation for alleged damage to the Chittorgarh Fort. Special Leave Petition has been filed before the Hon''ble Supreme Court and stay has been granted in the matter. 450.00 450.00

xviii) Cenvat Credit taken on Steel Items has been disallowed by the Commissioner, Central Excise, Jaipur vide order dated 27.02.2014. The company is contemplating to file appeal before Custom Excise & Service Tax Appellate Tribunal, New Delhi. 448.67 Nil

xix) Other Claims/Disputes/ Demands (being less than Rs. 100.00) pending in various legal forums in regard to Sales Tax, Excise Duty & Service Tax, Rates & Taxes, E.S.I., Electricity Duty & Surcharge, Electricity Charges, Export Tax and other claims - Rs. 130.86, Rs. 699.85, Rs. 72.06, Rs. 4.91, Rs. 0.56, Rs. 99.15, Rs. 82.96, Rs. 221.20 (Previous Year Rs. 123.36, Rs. 648.42, Rs. 169.48, Rs. 4.91, Rs. 0.56, Rs. 99.15, Rs. 82.96 and Rs. 274.44) respectively.

(b) Disputed amount of Rs. 68.61[Paid under protest Rs. 68.61] (PreviousYear Rs. 68.61[Paid under protest Rs. 68.61] ) in respect of difference of Fuel Cost Adjustment Charges, Rs. 463.52 [Paid under protest Rs. 75.00] (Previous Year Rs. 463.52 [Paid under protest Rs. 75.00] ) in respect of demand of Water Supply Charges, Rs. 355.19 [Paid under protest Rs. 137.39] (Previous Year Rs. 355.19 [Paid under protest Rs. 137.39]) in respect of Surcharge on Electricity, Rs. 6790.62 [Paid under protest Rs. 4099.71] (Previous Year Rs. 6115.51 [Paid under protest Rs. 3912.68] ) in respect of demand of Royalty on Limestone including interest thereon, Rs. 1783.18 [Paid under protest Rs. 370.00] (Previous Year Rs. 390.59 [Paid under protest Rs. 20.00] ) in respect of MODVAT/CENVAT claims, Rs. 3614.35 [Paid under protest Rs. 1579.91] (Previous Year Rs. 2498.70 [Paid under protest Rs. 382.36] ) in respect of Sales Tax/VAT, Rs. 24.56 [Paid under Protest Rs. 12.28] (Previous Year Rs. 24.56 [Paid under protest Rs. 12.28]) in respect of interest on delayed payment of Entry Tax, Rs. 12.99 [Paid under protest Rs. 2.00] (Previous Year Rs. 12.99 [Paid under protest S.00]) in respect of Service Tax, Rs. 4506.15 [Paid under protest Rs. 3651.51] (Previous Year Rs. 9159.30 [Paid under protest Rs. 1905.68]) in respect of Income Tax, Rs. 23.50 [Paid under protest Rs. 22.27] (Previous Year Rs. 34.76 [Paid under protest Rs. 23.27] ) in respect of Excise Duty have not been provided for as the matters are subjudice and Rs. 0.33 [Paid under protest Rs. 0.33] (Previous Year Rs. 0.33 [Paid under protest Rs. 0.33]) in respect of Other claims.

(c) Bills discounted with Banks remaining outstanding - Rs. 789.81 (Previous Year Rs. 600.23).

(d) Amount of Customs Duty including interest thereon, which may have to be paid on account of non-fulfillment of Export Obligation under EPCG Scheme and Duty Exemption (Advance Authorisation) Scheme is Rs. 408.01 and Rs. NIL (Previous Year Rs. 834.96 and Rs. 301.82) respectively.

1.2 Commitments Capital Commitments

Estimated amount of contracts remaining to be executed on Capital Account (Net of advances) and not provided for Rs. 6529.97 (Previous Year Rs. 2496.72).

1.3 Derivative Instruments and Unhedged Foreign Currency Instruments

(a) Outstanding Forward/Future Contracts booked for the purpose of hedging receivables/firm commitments are USD/INR 34.79 (Previous Year USD/INR 2.13) and payables/firm commitments are USD/INR 357.66 and EURO/INR 14.31 and EURO/USD NIL (Previous Year USD/INR 282.00, EURO/INR NIL and EURO/USD 6.55).Outstanding Interest rate Swap Contract booked for the purpose of Hedging LIBOR against payable are USD 313830 ( Previous Year "Nil")

(b) Unhedged foreign currency receivables are USD 3.12 and EURO 0.89 (Previous Year USD 8.53 and EURO 0.23 ) and payables are USD 972.64 and EURO 2.67 (Previous Year USD 681.38 and EURO 2.00).

1.4 Dues to Micro,Small and Medium Enterprises

The Company has made payments to Micro, Small and Medium Enterprises (MSMEs) as defined in the Micro, Small, Medium Enterprises Development Act, 2006, within the appointed date during the year and there are no MSMEs to whom the Company owes dues on account of principal amount with interest at the Balance Sheet date, hence no additional disclosures have been made. The above information has been determined to the extent such parties have been identified on the basis of information available with the Company.

1.5. Employee Benefits Expense

In accordance with the revised Accounting Standard-15 i.e. Employee Benefits, the requisite disclosure are as follows :

(b) In respect of Defined Benefit Plans, necessary disclosures are as under-

(i) Benefits are of the following types:

Every employee who has completed five years or more of service is entitled to gratuity on terms not less favourable than the provisions of the Payment of Gratuity Act, 1972;

Pension is payable to certain categories of employees as per Company''s Pension Scheme;

Provident Fund (other than government administered) as per the provisions of Employees Provident Funds and Miscellaneous Provisions Act, 1952.

(ix) The Gratuity Scheme is invested in a Group Gratuity-cum-Life Assurance Cash accumulation policy offered by Life Insurance Corporation (LIC) of India and Cap Assure Group Gratuity Scheme offered by SBI Life Insurance Co. Ltd. The information on the allocation of the fund into major asset classes and expected return on each major class are not readily available. The expected rate of return on plan assets is based on market expectations, at the beginning of the period, for returns over the entire life of the related obligation.

(x) The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

(xi) The Company expects to contribute Rs. 1000.00 (Previous Year Rs. 1500.00) to its gratuity fund in 2014-15.

(xii) In respect of provident funds in the nature of defined benefit plans contribution amounting to Rs. 618.02 (Previous Year Rs. 580.44) and the accrued past service liability of Rs. NIL (Previous Year Rs. 188.33) as valued by the actuary is recognised as an expense and included in''Employee Benefit Expense''.

1.6 Charity & Donation includes political donation Rs. 100.00 (Previous Year Rs. Nil) paid to Bharatiya Janata Party and Rs. 100.00 (Previous Year Rs. Nil) paid to Indian National Congress.

1.7 The Board of Directors of the Company at its meeting held on 25th July, 2013 had approved the Scheme of Amalgamation to amalgamate Talavadi Cements Limited, a 98% subsidiary with Birla Corporation Limited with an appointed date of 1st April, 2013. The Scheme is presently pending for the approval of the Hon''ble High Court, Kolkata.

1.8 Based on the recommendation of Inter Ministerial Group, Bikram Coal Block in the state of Madhya Pradesh has been de-allocated by the Ministry of Coal vide letter dated 7th January, 2014. Pursuant to writ petition filed by the company challenging the same, Hon''ble High Court, Jabalpur has permitted the company to move the court in case any steps are taken by the government for re-allocation of the block and stayed encashment of bank guarantee. The case is pending for further hearing.

1.9 There being uncertainties in realisation from Insurance Claims, the same are accounted for on settlemenVrealisation.

1.10 Certain Trade Receivables, Loans and Advances and Creditors are subject to confirmation.

1.11 a) The Company''s Unit Soorah Jute Mills is under Suspension of Operations since 29th March, 2004.

b) The Company''s Units Birla Vinoleum, Birlapur and Auto Trim Division, Birlapur, are under Suspension of Operations since 18th February, 2014.

c) In respect of mining matter of Chanderia, Central Building Research Institute (CBRI) which was directed to conduct the study of impact of mining on Chittorgarh fort by the Hon''ble Supreme Court, has sought extension of time up to 30th September, 2014 for completion of study as it could not complete the study within 31st March, 2014. Hon''ble Supreme Court has fixed the next date of hearing on 13th October, 2014.

1.11 Liability in respect of compensation/penalty, if any, for non-compliance of Jute Packaging Materials (Compulsory use of Packaging Commodities) Act, 1987 up to 30th June, 1997 being unascertainable shall be accounted for as and when settled.

B) Secondary Segment Information

The Company operates mainly in the Indian market and the export turnover being 2.15 % (Previous year 1.59 %) of the external sales of the Company, there are no reportable geographical segments.

C) Other Disclosures

The Company''s operations predominantly relate to Cement and other products are Jute Goods.Auto Trims and Steel Castings. Accordingly, these business segments comprise the primary basis of segmental information set out in these financial statements

Inter-segment transfers are based on prevailing market prices except for Iron & Steel Castings which is based on cost plus profit.

The accounting policies adopted for segment reporting are in line with the accounting policy of the Company.

1.12 Related Party Disclosure

a) As defined in Accounting Standard - 18, the Company has a related party relationship in the nature of control over its subsidiaries namely : Birla Jute Supply Company Ltd. Talavadi Cements Ltd. Lok Cements Ltd. Budge Budge Floorcoverings Ltd. Birla Cement (Assam) Ltd. M.R Birla Group Services Pvt. Ltd. Birla Corporation Cement Manufacturing PLC

b) Other related parties with whom transactions have taken place during the year and previous year are :

i) Associates Birla Readymix Pvt. Ltd.

Birla Odessa Pvt. Ltd.

ii) Key Management Personnel

Shri Bachh Raj Nahar, Managing Director

1.13 Figures for the previous year have been regrouped wherever necessary.


Mar 31, 2013

A) There has been no change/movements in number of shares outstanding at the beginning and at the end of the reporting period.

b) The Company has only one class of issued shares i.e. Ordinary Shares having par value of Rs. 10/- per share. Each holder of Ordinary Shares is entitled to one vote per share and equal right for dividend. The dividend proposed by the Board of Directors is subject to the approval of shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the ordinary shareholders are eligible to receive the remaining assets of the Company after payment of all preferential amounts, in proportion to their shareholding.

c) The Company does not have any Holding Company/ultimate Holding Company.

d) Details of shareholders holding more than 5% shares in the Company:

e) No Ordinary Shares have been reserved for issue under options and contracts/commitments for the sale of shares/disinvestment as at the Balance Sheet date.

f) No shares have been allotted or has been bought back by the Company during the period of 5 years preceeding the date as at which the Balance Sheet is prepared.

g) No securities convertible into Equity/Preference shares have been issued by the Company during the year.

h) No calls are unpaid by any Director or Officer of the Company during the year.

a) Non-Convertible Debentures are redeemable fully at par as under :

i) 9.05% NCD 2020 on 13th October, 2020;

ii) 9.10% NCD 2020 on 29th March, 2020;

iii) 8.80% NCD 2017 on 6th February, 2017;

iv) 8.65% NCD 2015 on 4th March, 2015.

The Debentures are secured by first charge on the movable and immovable fixed assets of the Company''s Cement Division, ranking pari-passu with the term lenders.

b) Rupee Term Loans from Bank of Rs. 3975.00 is repayable on 30th September, 2013 and is secured by first charge on the movable and immovable fixed assets of the Company''s Cement Units at Satna (Madhya Pradesh) and Chanderia (Rajasthan), ranking pari-passu with Debenture holders and other term lenders.

c) Foreign Currency Loans from Banks of Rs. 8266.68 is repayable in remaining fifteen semi-annual instalments and is secured by first charge on the movable and immovable fixed assets of the Company''s Cement Units at Chanderia (Rajasthan), ranking pari-passu with Debenture holders and other term lenders.

d) Foreign Currency Loans from Banks of Rs. 4071.75 is repayable in July/August, 2016 and Rs. 9500.75 is repayable in December, 2016/January, 2017 and is secured by first charge on the movable and immovable fixed assets of the Company''s Cement Division, ranking pari-passu with Debenture holders and other term lenders.

e) Foreign Currency Loans from Banks of Rs. 19001.50 is repayable in five annual installment of Rs. 2035.87 in September, 2015, Rs. 2035.87 in September, 2016, Rs. 3393.13 in September, 2017, Rs. 4750.38 in September, 2018, Rs. 6786.25 in September, 2019 and is secured by first charge on the movable and immovable fixed assets of the Company''s Cement Division, ranking pari-passu with Debenture holders and other term lenders.

(b) Disputed amount of Rs. 68.61[Paid under protest Rs. 68.61] (PreviousYear Rs. 68.61[Paid under protest Rs. 68.61] ) in respect of difference of Fuel Cost Adjustment Charges, Rs. 463.52 [Paid under protest Rs. 75.00] (Previous Year Rs. 463.52 [Paid under protest Rs. 75.00] ) in respect of demand of Water Supply Charges, Rs. 355.19 [Paid under protest Rs. 137.39] (Previous Year Rs. 355.19 [Paid under protest Rs. 137.39] ) in respect of Surcharge on Electricity, Rs. 6115.51 [Paid under protest Rs. 3912.68] (Previous Year Rs. 4695.10 [Paid under protest Rs. 3912.68] ) in respect of demand of Royalty on Limestone including interest thereon, Rs. 390.59 [Paid under protest Rs. 20.00] (Previous Year Rs. 9.48 [Paid under protest Rs. 9.48] ) in respect of MODVAT/CENVAT claims, Rs. 2106.76 [Paid under protest Rs. 311.29] (Previous Year Rs. 2092.50 [Paid under protest Rs. 261.49] ) in respect of Sales Tax/VAT, Rs. 24.56 [Paid under Protest Rs. 12.28] (Previous Year Rs. 24.56) [Paid under protest Rs. 12.28] in respect of interest on delayed payment of Entry Tax, Rs. 12.99 [Paid under protest Rs. 2.00] (Previous Year Rs. 8.71 [Paid under protest Rs. 2.00] ) in respect of Service Tax, Rs. 2935.31 [Paid under protest Rs. 1905.68] (Previous Year Rs. 1986.18) [Paid under protest Rs. NIL] ) in respect of Income Tax and Rs. 30.67 [Paid under protest Rs. 19.18] (Previous Year Rs. 659.02 [Paid under protest Rs. 152.50] ) in respect of Excise Duty have not been provided for as the matters are subjudice.

(c) Bills discounted with Banks remaining outstanding - Rs. 600.23 (Previous Year Rs. 594.38).

(d) Amount of Customs Duty including interest thereon, which may have to be paid on account of non-fulfillment of Export Obligation under EPCG Scheme and Duty Exemption (Advance Authorisation) Scheme is Rs. 834.96 and Rs. 301.82 (Previous Year Rs. 1009.30 and Rs. 1116.91) respectively.

1.1 Commitments Capital Commitments

Estimated amount of contracts remaining to be executed on Capital Account (Net of advances) and not provided for Rs. 2496.72 (Previous Year Rs. 3617.25).

1.2 Derivative Instruments and Unhedged Foreign Currency Instruments

(a) Outstanding Forward/Future Contracts booked for the purpose of hedging receivables/firm commitments are USD/INR 2.13 (Previous Year USD/INR2.38) and payables/firm commitments are USD/INR 282.00 and EURO/INR NIL and EURO/USD 6.55 (Previous Year USD/INR 195.00 and EURO/INR 5.00 and EURO/USD NIL).

(b) Unhedged foreign currency receivables are USD 8.53, GBP NIL and EURO 0.23 (Previous Year USD 10.57, GBP 0.24 and EURO 0.23 ) and payables are USD 681.38 and EURO 2.00 (Previous Year USD 653.45 and EURO 0.71).

1.3 Dues to Micro,Small and Medium Enterprises

The Company has made payments to Micro, Small and Medium Enterprises (MSMEs) as defined in the Micro, Small, Medium Enterprises Development Act, 2006, within the appointed date during the year and there are no MSMEs to whom the Company owes dues on account of principal amount of with interest at the Balance Sheet date, hence no additional disclosures have been made. The above information has been determined to the extent such parties have been identified on the basis of information available with the Company.

(b) In respect of Defined Benefit Plans, necessary disclosures are as under- (i) Benefits are of the following types :

- Every employee who has completed five years or more of service is entitled to gratuity on terms not less favourable than the provisions of the Payment of Gratuity Act, 1972;

- Pension is payable to certain categories of employees as per Company''s Pension Scheme;

- Provident Fund (other than government administered) as per the provisions of Employees Provident Funds and Miscellaneous ProvisionsAct, 1952.

(ix) The Gratuity Scheme is invested in a Group Gratuity-cum-Life Assurance Cash accumulation policy offered by Life Insurance Corporation (LIC) of India and Cap Assure Group Gratuity Scheme offered by SBI Life Insurance Co. Ltd. The information on the allocation of the fund into major asset classes and expected return on each major class are not readily available. The expected return on plan assets is based on market expectations, at the beginning of the period, for returns over the entire life of the related obligation.

(x) The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

(xi) The Company expects to contribute Rs. 1500 (Previous Year Rs. 500) to its gratuity fund in 2013-14.

(xii) Provident funds in the nature of defined benefit plans contribution amounting to Rs. 580.44 (Previous Year Rs. 584.95) and the accrued past service liability of Rs. 188.33 (Previous Year Rs. 31.79) as valued by the actuary is recognised as an expense and included in ''Payments to and Provision for Employees''.

1.4 The Board of Directors in its meeting held on 28th July, 2012 has elevated Shri B.R. Nahar from Executive Director & Chief Executive Officer of the company to Managing Director and also revised the maximum limit of Performance Linked Bonus payable to him from Rs. 50 to Rs. 100. The above is subject to the approval of the shareholders of the Company in the ensuing General Meeting.

1.5 Consequent to the implementation of SAP ERP System at Cement and Steel Foundry Units from 1st December, 2012, the method of valuation of Inventory of Raw Materials has been changed from FIFO basis to Weighted Average basis. As a result of this change, Inventory Value as on 31st March, 2013 and profit for the year ended 31st March, 2013 are higher by Rs. 547.15.

1.6 There being uncertainties in realisation from Insurance Claims, the same are accounted for on settlement/realisation.

1.7 Certain Trade Receivables, Loans and Advances and Creditors are subject to confirmation.

1.8 a) The Company''s Unit Soorah Jute Mills is under Suspension of Operations since 29th March, 2004.

b) The Company''s Unit Birla Jute Mills was under Suspension of Operations from 31st March, 2012 to 17th October, 2012.

c) ''Lay Off'' was declared in Auto Trim Division, Birlapur, w.e.f. 28th August, 2012. Birla Vinoleum, Birlapur, continued to remain under ''Lay Off'' during year on account of lack of demand.

d) The Mining Operations of the Chanderia Unit of the Company remained suspended during the year owing to an order of the Hon''ble Rajasthan High Court at Jodhpur. A Special Leave Petition (SLP) was filed by the company before the Hon''ble Supreme Court against the order. While hearing prayer on 8th March, 2013 Hon''ble Supreme Court had permitted mining activities with mechanical means without blasting for a period of four weeks, i.e. from 18th March, 2013 to 14th April, 2013 to enable Central Building Research Institute, Roorkie (CBRI) to study the impact of such mining activities on Chittorgarh Fort. The final report of CBRI on such study is pending submission.

1.9 Liability in respect of compensation/penalty, if any, for non-compliance of Jute Packaging Materials (Compulsory use of Packaging Commodities) Act, 1987 up to 30th June, 1997 being unascertainable shall be accounted for as and when settled.

B) Secondary Segment Information

The Company operates mainly in the Indian market and the export turnover being 1.59% (Previous Year 2.83%) of the external sales of the Company, there are no reportable geographical segments .

C) Other Disclosures

The Company''s operations predominantly relate to Cement and other products are Jute Goods, Auto Trims and Steel Castings. Accordingly, these business segments comprise the primary basis of segmental information set out in these financial statements.

Inter-segment transfers are based on prevailing market prices except for Iron & Steel Castings which is based on cost plus profit.

Under the current business environment, generated power is primarily being used for captive consumption. Accordingly, based on the current internal financial reporting structure and having regard to the general industry practices, the Company has decided to consider Power as part of Cement Segment for Segment Reporting purpose.

The accounting policies adopted for segment reporting are in line with the accounting policy of the Company.

1.10 Related Party Disclosure

a) As defined in Accounting Standard - 18, the Company has a related party relationship in the nature of control over its subsidiaries namely : Birla Jute Supply Company Ltd.

Talavadi Cements Ltd.

Lok Cements Ltd.

Budge Budge Floorcoverings Ltd.

Birla Cement (Assam) Ltd.

M.P Birla Group Services Pvt. Ltd.

Birla Corporation Cement Manufacturing PLC

b) Other related parties with whom transactions have taken place during the year and previous year are :

i) Associates Birla Readymix Private Limited

Birla Odessa Industries Private Limited

ii) Key Management Personnel Shri Bachh Raj Nahar, Managing Director

1.11 Figures for the previous year have been regrouped wherever necessary.


Mar 31, 2012

A) There has been no change/movements in number of shares outstanding at the beginning and at the end of the reporting period.

b) The Company has only one class of issued shares i.e. Ordinary Shares having par value of Rs 10/- per share. Each holder of Ordinary Shares is entitled to one vote per share and equal right for dividend. The dividend proposed by the Board of Directors is subject to the approval of shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the ordinary shareholders are eligible to receive the remaining assets of the Company after payment of all preferential amounts, in proportion to their shareholding.

c) The Company does not have any Holding Company/ultimate Holding Company.

d) Details of shareholders holding more than 5% shares in the Company:

e) No Ordinary Shares have been reserved for issue under options and contracts/commitments for the sale of shares/disinvestment as at the Balance Sheet date.

f) No shares have been allotted or has been bought back by the Company during the period of 5 years preceeding the date as at which the Balance Sheet is prepared.

g) No securities convertible into Equity/Preference shares issued by the Company during the year.

h) No calls are unpaid by any Director or Officer of the Company during the year.

a) Non-Convertible Debentures are redeemable fully at par as under :

i) 9.05% NCD 2020 on 13th October, 2020;

ii) 9.10% NCD 2020 on 29th March, 2020;

iii) 8.80% NCD 2017 on 6th February, 2017;

iv) 8.65% NCD 2015 on 4th March, 2015.

The Debentures are secured by first charge on the movable and immovable fixed assets of the Company's Cement Division, ranking pari-passu with the term lenders.

b) Rupee Term Loans from Bank of Rs 3975.00 is repayable on 30th September, 2013 and is secured by first charge on the movable and immovable fixed assets of the Company's Cement Units at Satna (Madhya Pradesh) and Chanderia (Rajasthan), ranking pari-passu with Debentures and other term lenders. Rupee Term Loan from Bank of Rs 855.13 is repayable in quarterly instalments of Rs 73.75 starting from 31st March, 2013 and is secured by specific charge on certain Plant & Machineries of the Company's Unit Birla Jute Mills (West Bengal).

c) Foreign Currency Loans from Banks of Rs 8780.43 is repayable in remaining seventeen semi-annual instalments and is secured by first charge on the movable and immovable fixed assets of the Company's Cement Units at Chanderia (Rajasthan), ranking pari-passu with Debenture holders and other term lenders.

Foreign Currency Loans from Banks of Rs 3816.00 is repayable in July/August, 2016 and Rs 8904.00 is repayable in December, 2016/January, 2017. These Foreign Currency Loans are secured by first charge on the movable and immovable fixed assets of the Company's Cement Division, ranking pari-passu with Debenture holders and other term lenders.

Provision for current tax has been made u/s 115JB of the Income Tax Act, 1961. The company has not accounted for MAT credit u/s 115JAA of Rs 3763 (Previous Year Rs 925) as, in the opinion of the management, the company may continue to pay tax u/s 115JB of the Income Tax Act, 1961 in view of capital expenditure plans.

a) Working Capital Rupee Loans from Banks are secured by hypothecation of Current Assets,viz, Raw Materials,Stock-in-Trade, Consumable Stores and Book Debts, both present & future, and further by way of second charge on movable and immovable fixed assets of the Company's Cement Division.

b) Buyers Credit and Packing Credit in Foreign Currency (Secured) are secured against lien on certain Units of Mutual Funds.

c) Collateralised Borrowing and Lending Obligation is secured by deposit of Government Securities.

(a) Includes Rs 8.85 in Land and Rs 915.26 in Building under co-ownership basis and also Rs 0.15 being value of investments in Shares of a Private Ltd.Co.

(b) Includes Rs 88.50 being cost of Silo on lease hold land and Rs 88.50 being amortisation thereof up to 31st March, 2012.

(c) Includes Rs 590.63 being cost of flyash handling system on lease hold land and Rs 590.63 being amortisation thereof up to 31st March, 2012.

(d) Assets of the Cement Division were revalued during the year ended 31.03.85 and that of other units during the year ended 31.03.89 at 'net current value' on the basis of valuation report made by valuers and the amount added on such revaluation were Rs 7376.84 and Rs 2006.35 respectively.

(e) The Company has mortgaged a portion of land at Birlapur and Chanderia as security for subsidies received under Subsidised Housing Scheme for Industrial Workers.

(f) Other adjustment includes adjustment on account of borrowing costs & exchange differences.

* Amount is below the rounding off norm adopted by the company.

a) Although the market value of Investment in Birla Ericsson Optical Ltd. is lower than cost, considering the long-term and strategic nature of the investment, in the opinion of the management, such decline is temporary in nature and no provision is necessary for the same.

b) Deposited against Collaterized Borrowings and Lending Obligations except face value of Rs 1.00 (Lacs) of 6.05% GOI 2019.

c) Deposited with Government Departments as Security.

d) Lien Marked in favour of Banks.

e) Portion of Long-Term Investments, as defined by Accounting Standard - 13 'Accounting for Investments', which are expected to be realised within twelve months from the Balance Sheet date are disclosed under the head 'Current portion of Long-Term Investments' (See Note. 2.14).

Loans and Advances to Related Parties include :

i) Rs 207.90 (Previous Year Rs 204.36) to Lok Cements Ltd., a subsidiary, being interest free for setting up new projects and will be realised/adjusted on implementation of projects. The maximum amount outstanding at any time during the year Rs 207.90 (Previous Year Rs 204.36).

ii) Rs 3.03 (Previous Year Rs Nil) to Birla Corporation Cement Manufacturing PLC, a subsidiary, being interest free. The maximum amount outstanding at any time during the year Rs 3.03 (Previous Year Rs Nil).

iii) Rs Nil (Previous Year Rs Nil) to Talavadi Cements Limited, a subsidiary, being interest free. The maximum amount outstanding at any time during the year Rs 113.81 (Previous Year Rs 94.36).

iv) Rs Nil (Previous Year Rs Nil) to Budge Budge Floor coverings Limited, a subsidiary, being interest free. The maximum amount outstanding at any time during the year Rs 0.05 (Previous Year Rs 0.07).

* Amount is below the rounding off norm adopted by the company.

a) Portion of Long-Term Investments, as defined by Accounting Standard -13 'Accounting for Investments', which are expected to be realised within twelve months from the Balance Sheet date are disclosed as 'Current portion of Long-Term Investments'.

b) Lien Marked in favour of Banks.

(Rs in lacs)

1 Contingent Liabilities not provided for -

(a) Claims/Disputes/Demands not acknowledged as debts -

2011-12 2010-11

i) Demand notice for levying sales tax on packing material at the rate applicable on cement.

Writ petition has been filed and the matter is pending before Hon'ble High Court, Chandigarh. 161.07 161.07

ii) Demand for Water Supply Charges under Rajasthan Irrigation & Drainage Act, 1954. Writ petition has been filed before the Hon'ble High Court, Rajasthan which has granted stay in the matter. 147.16 147.16

iii) Additional U. P Sales Tax demanded by enhancing the value of cement. The case has been decided by Tribunal in Company's favour. Department has filed revision petition before Hon'ble High Court, Allahabad against order of the Tribunal. The High Court has remanded the case to UP Trade Tax Tribunal. 146.40 146.40

iv) Demand for interest on delayed payment of Entry Tax raised by the U.P Trade Tax Department, Allahabad. Writ petition has been filed before the Hon'ble High Court, Allahabad which has granted stay in the matter. 264.84 158.46

v) Cenvat Credit taken on GTA service on the basis of TR-6 challan disallowed. Appeal filed before the CESTAT, New Delhi and stay granted in the matter. 190.94 190.94

vi) Excise Duty rebate received in earlier year by a Unit of the Company has been protested by the excise authorities before the Hon'ble Supreme Court. The matter has been remitted to the Assistant Commissioner of Central Excise. Hearing held and order awaited. 969.13 969.13

vii) Stamp Duty for registration/ execution of deed of certain Limestone Mining Lease. The matter is pending before the Hon'ble Supreme Court. 777.60 777.60

viii) Entry Tax as per U.P VAT Act on clinker received at Raebareli from Satna. The matter is pending before the Hon'ble Supreme Court. 319.86 639.71

ix) Renewable Energy Surcharge on account of shortfall of energy purchase from renewable energy sources as per Rajasthan Electricity Regulatory Commission notification dt. 23.03.2007. The matter is pending before the Hon'ble High Court, Rajasthan. 1726.67 1726.67

x) Appeal filed by the Excise Department before CESTAT, New Delhi on account of allowance of tolerance limit in weighment of packed cement which was earlier allowed in favour of the Company. 141.93 141.93

xi) Demand for differential Property Tax and Penalty raised by Municipal Corporation, Satna as per their re-assessment. Appeal filed and pending before Mayor-in-Council, Satna. 1177.51 NIL

xii) Demand of penalty by SDO, Raghuraj Nagar, for alleged impermissible mining in Village Naina. Writ Petition has been filed and stay has been granted by Hon'ble High Court. 1160.00 1160.00

xiii) Demand under Income Tax Act, 1961 for Assessment Year 2008-09,the matter is pending before CIT(Appeals). 1986.18 4102.73

xiv) Demand under Income Tax Act, 1961 for Assessment Year 2009-10, the matter is pending before CIT(Appeals). 2851.05 NIL

xv) Demand for Interest on Entry Tax under U.P VAT Act. Case is pending before Hon'ble Supreme Court. 636.38 NIL

xvi) Demand for Interest on U.P Entry tax on Clinker and Cement. The matter is pending before Hon'ble Supreme Court. 947.10 NIL

xvii) Demand of House Tax under Rajasthan Municipalities (Land and Building Tax) Rules, 1961 raised by Municipal Board, Chittorgarh. The matter is pending before Hon'ble High Court, Rajasthan. 251.73 NIL

xviii) Other Claims/Disputes/Demands (being less than Rs 100.00) pending in various legal forums for Sales Tax, Excise Duty & Service Tax, Rates & Taxes, E.S.I., Electricity Duty & Surcharge, Electricity Charges, Export Tax and Other Claims - Rs 145.50, Rs 543.04, Rs 188.60, Rs 4.91, Rs 0.56, Rs 99.15, Rs 82.96, Rs 295.48 (Previous Year Rs 188.91, Rs 278.28, Rs 119.58, Rs 4.91, Rs 0.56, Rs 99.15, Rs NIL and Rs 312.28) respectively.

(b) Disputed amount of Rs 68.61[Paid under protest Rs 68.61](Previous Year Rs 68.61[Paid under protest Rs 68.61] ) in respect of difference of Fuel Cost Adjustment Charges, Rs 463.52 [Paid under protest Rs 75.00] (Previous Year Rs 461.31 [Paid under protest Rs 75.00] ) in respect of demand of Water Supply Charges, Rs 355.19 [Paid under protest Rs 137.39] (Previous Year Rs 355.19 [Paid under protest Rs 69.70] ) in respect of Surcharge on Electricity, Rs 4695.10 [Paid under protest Rs 3912.68] (Previous Year Rs 3464.25 [Paid under protest Rs 2309.50] ) in respect of demand of Royalty on Limestone including interest thereon, Rs 1194.63 [Paid under protest Rs 9.48] (Previous Year Rs 992.98 [Paid under protest Rs 9.48]) in respect of MODVAT/CENVAT claims, Rs 2092.50 [Paid under protest Rs 261.49] (Previous Year Rs 1913.34 [Paid under protest Rs 98.66] ) in respect of Sales Tax/VAT, Rs 24.56 [Paid Rs in lacs; under protest Rs 12.28] (previous year Rs 26.35)[paid under protest Rs Nil] in respect of interest on delayed payment of Entry Tax and Rs 659.02 [Paid under protest Rs 152.50] in respect of Excise Duty have not been provided for as the matters are sub judice.

(c) Bills discounted with Banks remaining outstanding - Rs 594.38 (Previous Year Rs 1394.87).

(d) Amount of Customs Duty including interest thereon, which may have to be paid on account of non-fulfillment of Export Obligation under EPCG Scheme and Duty Exemption (Advance Authorisation) Scheme is Rs 1009.30 and Rs 1116.91 (Previous Year Rs 685.15 and Rs 1142.09) respectively.

(e) The Company is liable to contribute upto a maximum of Rs 0.75 (Previous Year Rs 0.75) to C.A.C.O. in the event of its being wound-up during the time the Company continues to be its member or within one year thereafter.

2 Commitments Capital Commitments

Estimated amount of contracts remaining to be executed on Capital Account (Net of advances) and not provided for Rs 3617.25 (Previous Year Rs 14173.19).

3 Derivative Instruments and Unhedged Foreign Currency Instruments

(a) Outstanding Forward Exchange Contracts booked for the purpose of hedging receivables/firm commitments are USD 2.38 and EURO NIL (Previous Year USD NIL and EURO 0.88) and payables/firm commitments are USD 195.00 and EURO 5.00 (Previous Year USD 170.00 and EURO 20.00). Outstanding Cross Currency Swap Contracts booked for the purpose of hedging payables are CHF/USD NIL and CHF/EURO NIL (Previous Year CHF/USD 78.65 and CHF/EURO 4.55)

(b) Unhedged foreign currency receivables are USD 10.57, GBP 0.24 and EURO 0.23 (Previous Year USD 14.80, GBP 0.30 and EURO 0.75) and payables are USD 653.45, EURO 0.71 and CHF NIL (Previous Year USD 323.77, EURO 1.10 and CHF 0.17).

(c) The marked to market gain amounting to Rs NIL (Previous Year Rs 10.08) on Forward Exchange Contracts for firm commitments and highly probable forecast transactions has not been accounted for.

4 During the year, Company has exercised the option under paragraph 46A(1) of Accounting Standard-11 relating to "The Effects of Changes in Foreign Exchange Rates" as notified by the Ministry of Corporate Affairs on 29th December, 2011. Consequently, the Foreign Exchange loss arising on reporting of long-term foreign currency monetary items amounting to Rs 270.63 for the year ended 31st March, 2012 is added to the cost of depreciable fixed assets & CWIP and out of which Rs 269.57 remains unamortised as at 31.03.2012.

5 Dues to Micro, Small and Medium Enterprises

The Company has made payments to Micro, Small and Medium Enterprises (MSMEs) as defined in the Micro, Small, Medium Enterprises Development Act, 2006, within the appointed date during the year and there are no MSMEs to whom the Company owes dues on account of principal amount of with interest at the Balance Sheet date, hence no additional disclosures have been made. The above information has been determined to the extent such parties have been identified on the basis of information available with the Company.

(b) In respect of Defined Benefit Plans, necessary disclosures are as under- (i) Benefits are of the following types :

- Every employee who has completed five years or more of service is entitled to gratuity on terms not less favourable than the provisions of the Payment of Gratuity Act, 1972;

- Pension is payable to certain categories of employees as per Company's Pension Scheme;

- Provident Fund (other than government administered) as per the provisions of Employees Provident Funds and Miscellaneous Provisions Act, 1952.

a) Amount not recognised as an asset, because of the limit in paragraph 59 (b) of Accounting Standard-15 (Revised 2005) i.e. Employee Benefits is Rs Nil.

b) The fair value at the end of the year of any reimbursement right recognised as an asset in accordance with paragraph 103 is Rs Nil.

c) Fair value of plan assets does not include any amount for Companies own financial instruments or any property occupied by, or other assets used by, the Company to the extent of the information available.

(vi) The major categories of plan assets as a percentage of total plan assets are as follows :

(viii) The Gratuity Scheme is invested in a Group Gratuity-cum-Life Assurance Cash accumulation policy offered by Life Insurance Corporation (LIC) of India and Cap Assure Group Gratuity Scheme offered by SBI Life Insurance Co. Ltd. The information on the allocation of the fund into major asset classes and expected return on each major class are not readily available. The expected rate of return on plan assets is based on the assumed rate of return provided by Company's Actuary.

(ix) The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

(x) The Company expects to contribute Rs 500 (Previous Year Rs 300) to its gratuity fund in 2012-13.

(xi) In respect of provident funds in the nature of defined benefit plans contribution amounting to Rs 584.95 (Previous Year Rs 476.07) and the accrued past service liability of Rs 31.79 (Previous Year Rs 143.17) as valued by the actuary is recognised as expense and included in 'Payments to and Provision for Employees'.

6 The closing stock of Certified Emission Reductions (CERs) as on 31st March, 2012 is NIL (Previous Year 87157 units).

7 There being uncertainties in realisation from Insurance Claims, the same are accounted for on settlement/realisation.

8 Certain Sundry Debtors, Loans and Advances and Creditors are subject to confirmation.

9 a) The Company's Units: Soorah Jute Mills and Birla Jute Mills are under Suspension of Operations since 29th March, 2004 and 31st March, 2012 respectively.

b) The working of the Chanderia Unit has been severely hampered at the mining and blasting operation for limestone at the Chanderia Plant remained suspended since 20th August, 2011 in view of the Order of the Hon'ble Jodhpur High Court.

10 Liability in respect of compensation/penalty, if any, for non-compliance of Jute Packaging Materials (Compulsory use of Packaging Commodities) Act, 1987 upto 30th June, 1997 being unascertainable shall be accounted for as and when settled.

B) Secondary Segment Information

The Company operates mainly in the Indian market and the export turnover being 2.83% (Previous Year 4.31%) of the external sales of the Company, there are no reportable geographical segments .

C) Other Disclosures

The Company's operations predominantly relate to cement and other products are Jute Goods, Generation of Power, PV.C. Goods, Auto Trims and Steel Castings. Accordingly, these business segments comprise the primary basis of segmental information set out in these financial statements.

Inter-segment transfers are based on prevailing market prices except for Iron & Steel Castings and PVC Goods which are based on cost plus profit.

The accounting policies adopted for segment reporting are in line with the accounting policy of the Company.

11 Related Party Disclosure

a) As defined in Accounting Standard - 18, the Company has a related party relationship in the nature of control over its subsidiaries namely : Birla Jute Supply Company Ltd (Formerly Assam Jute Supply Company Ltd.)

Talavadi Cements Ltd.

Lok Cements Ltd.

Budge Budge Floor coverings Ltd.

Birla Cement (Assam) Ltd.

Birla North-East Cement Ltd.(under liquidation)

M.P Birla Group Services Pvt. Ltd.

Birla Corporation Cement Manufacturing PLC

12 Figures for the previous year have been regrouped wherever necessary.


Mar 31, 2011

1. Contingent Liabilities not provided for -

(a) Bills discounted with Banks remaining outstanding - Rs. 1394.87 (Previous Year Rs. 995.09).

(b) Guarantees and Counter-guarantees - Rs. 2366.41 (Previous Year Rs. 1596.11).

(c) Amount of Customs Duty which may have to be paid on account of non-fulfillment of Export Obligation under EPCG Scheme and Duty Exemption (Advance Authorisation) Scheme is Rs. 685.15 and Rs. 1142.09 (Previous Year Rs. 747.20 and Rs. 759.15) respectively.

(d) The Company is liable to contribute up to a maximum of Rs. 0.75 (Previous Year Rs. 0.75) to C.A.C.O. in the event of its being wound-up during the time the Company continues to be its member or within one year thereafter.

(e) Claims/Disputes/Demands not acknowledged as debts -

2010-11 2009-10

i) Demand notice for levying sales tax on packing material at the rate applicable on cement. Writ petition has been filed and the matter is pending before Honble High Court, Chandigarh. 161.07 161.07

ii) Demand for Water Supply Charges under Rajasthan Irrigation & Drainage Act, 1954. Writ petition has been filed before the Honble High Court, Rajasthan which has granted stay in the matter. 147.16 147.16

iii) Additional U. R Sales Tax demanded by enhancing the value of cement. The case has been decided by Tribunal in Companys favour. Department has filed revision petition before Honble High Court, Allahabad against order of the Tribunal. The High Court has remanded the case to UP Trade Tax Tribunal. 146.40 146.40

iv) Demand for interest on delayed payment of Entry Tax raised by the U.R Trade Tax Department. Allahabad. Writ petition has been filed before the Honble High Court, Allahabad which has granted stay in the matter. 158.46 158.46

v) Cenvat Credit taken on GTA service on the basis of TR-6 challan disallowed. Appeal filed before the CESTAT, New Delhi and stay granted in the matter. 190.94 190.94

vi) Excise Duty rebate received in earlier year by a Unit of the Company has been protested by the excise authorities before the Honble Supreme Court. The matter has been remitted to the Assistant Commissioner of Central Excise. Hearing held and order awaited. 969.13 969.13

vii) Stamp Duty for registration/execution of deed of certain Limestone Mining Lease. The matter is pending before the Honble Supreme Court. 777.60 777.60

viii) Entry Tax as per U.R VAT Act on clinker received at Raebareli from Satna. The matter is pending before the Honble Supreme Court. 639.71 639.71

ix) Renewable Energy Surcharge on account of shortfall of energy purchase from renewable energy sources as per Rajasthan Electricity Regulatory Commission notification dt. 23.03.2007. The matter is pending before the Honble High Court, Rajasthan. 1726.67 1089.74

x) Demand for Entry Tax under Rajasthan Tax on entry of goods into Local Area Act, 1999. Stay has been granted by the Honble High Court, Rajasthan. NIL 631.00

xi) Appeal filed by the Excise Department before CESTAT, New Delhi on account of allowance of tolerance limit in weighment of packed cement which was earlier allowed in favour of the Company. 141.93 141.93

xii) Demand for VAT including penalty and interest by ACCT (Audit), Patna under Bihar VAT Act, 2005. The matter is pending before Jt. Commissioner (Appeal), Patna. 1241.14 1241.14

xiii) Demand of penalty by SDO, Raghuraj Nagar, for alleged impermissible mining in Village Naina. Writ Petition has been filed and stay has been granted by Honble High Court. 1160.00 --

xiv) Demand under Income Tax Act, 1961 for Assessment Year 2008 - 09.The matter is pending before CIT (Appeals). 4102.73 --

xv) Other Claims/Disputes/Demands (being less than Rs. 100.00) pending in various legal forums for Sales Tax, Excise Duty & Service Tax. Rates & Taxes, E.S.I., Electricity Duty & Surcharge, Electricity Charges, and other claims - ^188.91, Rs. 278.28, Rs. 119.58, Rs. 4.91, Rs. 0.56. Rs. 99.15, Rs. 312.28 (Previous Year Rs. 158.59, Rs. 269.69, Rs. 114.20, Rs. 4.91, Rs. 0.56, Rs. 99.15, and Rs. 327.68) respectively.

2. Estimated amount of contracts remaining to be executed on Capital Account (Net of advances) and not provided for Rs. 14173.19 (Previous Year * 20600.89).

3. Disputed amount of Rs. 68.61[Paid under protest Rs. 68.61] (PreviousYear Rs. 68.61[Paid under protest Rs. 68.61] ) in respect of difference of Fuel Cost Adjustment Charges, Rs. 461.31 [Paid under protest Rs. 75.00] (Previous Year Rs. 450.83 [Paid under protest Rs. 75.00] ) in respect of demand of Water Supply Charges, Rs. 355.19 [Paid under protest Rs. 69.70] (Previous Year Rs. 206.02 [Paid under protest Rs. 69.70] ) in respect of Surcharge on

Electricity, Rs. 3464.25 [Paid under protest Rs. 2309.50] (Previous Year Rs. 3151.08 [Paid under protest Rs. 1782.88] ) in respect of demand of Royalty on Limestone including interest thereon, Rs. 992.98 [Paid under protest Rs. 9.48] (Previous Year Rs. 655.46 [Paid under protest Rs. 9.48] ) in respect of MODVAT/CENVAT claims, Rs. 672.20 [Paid under protest Rs. 98.66] (Previous Year Rs. 765.99 [Paid under protest Rs. 114.16]) in respect of Sales Tax/VAT and Rs. 659.02 [Paid under protest Rs. 152.50] (Previous Year Rs. 692.75 [Paid under protest Rs. 152.50]) in respect of Excise Duty have not been provided for as the matters are subjudice.

4. The Company has mortgaged a portion of land at Birlapur and Chanderia as security for subsidies received under Subsidised Housing Scheme for Industrial Workers.

5. Capital Work-in-progress includes other expenses during construction for project Rs. 142.25 (Previous Year Rs. 40.15).

6. Stores, Spare Parts etc under Schedule 8 "Inventories" include Rs. 128.58 (Previous Year Rs. 135.10) on account of Fixed Assets held for disposal. The same has been valued at Cost or Net Realisable value, whichever is lower.

7. Provision for current tax has been made u/s 115JB of the Income Tax Act, 1961. The company has not accounted for MAT credit u/s 115JAA of Rs. 925.00 as, in the opinion of the management, the company may continue to pay tax u/s 115JB of the Income Tax Act, 1961 in view of capital expenditure plans.

8. Advances to Employees Rs. 0.90 (Previous Year Rs. 0.37) are under litigation.

9. Certain Sundry Debtors, Loans and Advances and Creditors are subject to confirmation.

10. Loans and Advances include:

(a) Rs. 204.36 (Previous Year Rs. 201.11) to Lok Cements Ltd., a subsidiary, being interest free for setting up new projects and will be realised / adjusted on implementation of projects. The maximum amount outstanding at any time during the year Rs. 204.36 (Previous Year Rs. 201.11).

(b) Rs. NIL (Previous Year Rs. NIL) to Budge Budge Floorcoverings Ltd., a subsidiary, being interest free. The maximun amount outstanding at any time during the year Rs. 0.07 (Previous Year Rs. 0.19).

(c) Rs. Nil (Previous Year Rs. NIL) to Talavadi Cement Limited., a subsidiary, being interest free. The maximum amount outstanding at any time during the year Rs. 94.36 (Previous Year Rs. 1.31).

11. The Company has made payments to Micro, Small and Medium Enterprises (MSMEs) as defined in the Micro, Small, Medium Enterprises Development Act, 2006, within the appointed date during the year and there are no MSMEs to whom the Company owes dues on account of principal amount together with interest at the Balance Sheet date, hence no additional disclosures have been made. The above information and that given in "Current Liabilities - Schedule 12" regarding MSMEs has been determined to the extent such parties have been identified on the basis of information available with the Company.

12. (a) Outstanding Forward Exchange Contracts booked for the purpose of hedging receivables are USD NIL and EURO 0.88 (Previous Year USD

2.70 and EURO NIL) and payables are USD 170.00 and EURO 20.00 (Previous Year USD 45.00 and EURO NIL). Outstanding Cross Currency Swap Contracts booked for the purpose of hedging payables are CHF/USD 78.65 , CHF/EURO 4.55 and JPY/USD NIL (Previous Year CHF/USD 76.04, CHF/EURO NIL and JPY/USD 479.31).

(b) Unhedged foreign currency receivables are USD 14.80, GBP 0.30 and EUR 0.75 (Previous Year USD 4.95, GBP NIL and EUR NIL ) and payables are USD 323.77, EUR 1.10, CHF 0.17 and JPY NIL (Previous Year USD 233.93, EUR 2.73, CHF 22.77 and JPY 0.26).

(c) The marked to market gain amounting to Rs. 10.08 (Previous Year Rs. 4.16) on Forward Exchange Contracts for firm commitments and highly probable forecast transactions has not been accounted for.

13. Although the market value of Investment in Birla Ericsson Optical Ltd. is lower than cost, considering the long term and strategic nature of the investment, in the opinion of the management, such decline is temporary in nature and no provision is necessary for the same.

14. Liability in respect of compensation/penalty, if any, for non-compliance of Jute Packaging Materials (Compulsory use of Packaging Commodities) Act, 1987 up to 30th June, 1997 being unascertainable shall be accounted for as and when settled.

15. Miscellaneous Income under Schedule 15 includes Rs. 645.37 lacs on account of foreign exchange gain (Previous Year Rs. 700.76 lacs).

16. There being uncertainties in realisation from Insurance Claims, the same are accounted for on settlement/realisation.

17. The closing stock of Certified Emission Reductions (CERs) as on 31st March 2011 is 87157 units (Previous Year 96145 units).

18. Repairs to Buildings, Repairs to Machinery, Salary, Wages & Bonus etc and Transporting & Forwarding Expenses includes Voluntary Retirement Payments to employees on separation Rs. NIL, Rs. 12.93, Rs. 225.46 and Rs. 5.48 (Previous year Rs. 5.46, Rs. 11.14, Rs. NIL and Rs. NIL) respectively.

19. Sundry Adjustments include prior periods adjustments of Rs. 34.14 (Net Debit) [Previous Year Rs. 9.47 (Net Debit)].

20. The Companys Unit: Soorah Jute Mills is under Suspension of Operations since 29th March, 2004.

21. a) As defined in Accounting Standard - 18, the Company has a related party relationship in the nature of control over its subsidiaries namely :

Birla Jute Supply Company Ltd (Formerly Assam Jute Supply Company Ltd.)

Talavadi Cements Ltd.

Lok Cements Ltd.

Budge Budge Floorcoverings Ltd.

Birla Cement (Assam) Ltd.

Birla North-East Cement Ltd.

New-Age Cement Ltd.

Thiruvaiyaru Industries Ltd.

M.R Birla Group Services Pvt. Ltd.

b) Other related parties with whom transactions have taken place during the year and previous year are :

Key Management Personnel Shri Bachh Raj Nahar, E.D. & Chief Executive Officer

22. Figures for the Previous Year have been regrouped wherever necessary.


Mar 31, 2010

1. Contingent Liabilities not provided for -

(a) Bills discounted with Banks remaining outstanding - Rs. 995.09 (Previous Year Rs. 717.68).

(b) Guarantees and Counter-guarantees - Rs. 1596.11 (Previous Year Rs. 1578.14).

(c) Amount of Customs Duty which may have to be paid on account of non-fulfillment of Export Obligation under EPCG Scheme and Duty Exemption (Advance Authorisation) Scheme is Rs. 747.20 and Rs. 759.15 (Previous Year Rs. 395.29 and Rs. Nil) respectively.

(d) The Company is liable to contribute up to a maximum of Rs. 0.75 (Previous Year Rs. 0.75) tq CA.C.O. in the event of its being wound-up during the time the Company continues to be its member or within one year thereafter.

(Rs. in lacs)

(e) Claims/Disputes/Demands not acknowledged as debts -

2009-10 2008-09

i) Demand notice for levying sales tax on packing material at the rate applicable on cement.

Writ petition has been filed and the matter is pending before Honble High Court, Chandigarh. 161.07 161.07

ii) Demand for Water Supply Charges under Rajasthan Irrigation & Drainage Act, 1954. Writ petition has been filed before the Honble High Court, Rajasthan which has granted stay in the matter. 147.16 147.16

iii) Additional U. R Sales tax demanded by enhancing the value of cement. The case has been decided by Tribunal in Companys favour. Department has filed revision petition before Honble High Court, Allahabad against order of the Tribunal. The High Court has remanded the case to UP Trade Tax Tribunal. 146.40 146.40

iv) Demand for interest on delayed payment of Entry Tax raised by the U.P. Trade Tax Department, Allahabad. Writ petition has been filed before the Honble High Court, Allahabad which has granted stay in the matter. 158.46 158.46

v) Cenvat Credit taken on GTA service on the basis of TR - 6 challan disallowed. Appeal filed before the CESTAT, New Delhi and stay granted in the matter. 190.94 190.94

vi) Excise Duty rebate received in earlier year by a Unit of the Company has been protested by the excise authorities before the Honble Supreme Court. The matter has been remitted to the Assistant Commissioner of Central Excise. Hearing held and order awaited. 969.13 969.13

vii> Stamp Duty for registration/execution of deed of certain Limestone Mining Lease. The matter is pending before the Honble Supreme Court. 777.60 777.60

viii) Entry Tax as per U.R VAT Act on clinker received at Raebareli from Sarna. The matter is pending before the Honble Supreme Court. 639.71 573.82

ix) Renewable Energy surcharge on account of shortfall of energy purchase from renewable energy sources as per Rajasthan Electricity Regulatory commission notification dt. 23.03.2007. The matter is pending before the Honble High Court, Rajasthan. 1089.74 697.48

x) Demand for Entry Tax underRajasthan Tax on entry of goods into Local Area Act, 1999.

Stay has been granted by the Honble High Court, Rajasthan. 631.00 371.92

xi) Appeal filed by the Excise Department before CESTAT, New Delhi on account of allowance of tolerance limit in weighment of packed cement which was earlier allowed in favour of the Company. 152.10 --

xii) Demand for VAT including penalty and interest by ACCT (Audit), Patna under Bihar VAT Act. 2005. The matter is pending before Jt. Commissioner (Appeal), Patna. 1241.14 --

xiii) Other Claims/Disputes/Demands (being less than Rs. 100.00) pending in various legal forums for Sales Tax, Excise Duty & Service Tax, Rates & Taxes, E.S.I., Electricity Duty & Surcharge, Electricity Charges, and other claims - Rs. 158.59, Rs. 259.52, Rs. 114.20, Rs. 4.91, Rs. 0.56, Rs. 99.15, Rs. 327.68 (Previous Year Rs. 81.01, Rs. 314.35, Rs. 108.81, Rs. 4.91, Rs. 0.56, Rs. 99.15, and Rs. 318.91) respectively.

2. Estimated amount of contracts remaining to be executed on Capital Account (Net of advances) and not provided for Rs. 20600.89 (Previous Year Rs. 11455.48).

3. Disputed amount of Rs. 68.61[Paid under protest Rs. 68.61 ](PreviousYearRs. 68.61 [Paid under protest Rs.68.61]) in respect of difference of Fuel Cost Adjustment Charges, Rs. 450.83 [Paid under protest Rs. 75.00] (Previous Year Rs. 439.09 [Paid under protest Rs. 75.00]) in respect of demand of water supply charges, Rs. 206.02 [Paid under protest Rs. 69.70] (Previous Year Rs. 206.02 [Paid under protest Rs. 69.70]) in respect of Surcharge on Electricity, Rs. 3151.08 [Paid under protest Rs. 1782.88] (Previous Year Rs. 3265.79 Paid under protest Rs. 506.11]) in respect of demand of Royalty on limestone including interest thereon, Rs. 655.46 [Paid under protest Rs. 9.48] (Previous Year Rs. 655.68 [Paid under protest Rs. 10.15]) in respect of MODVAT/CENVAT claims, Rs. 765.99 [Paid under protest Rs. 114.16] (Previous Year Rs. 860.93 [Paid under protest Rs. 127.53]) in respect of Sales Tax/VAT and Rs. 692.75 [Paid under protest Rs.152.50] (Previous Year Rs. 1285.16 [Paid under protest Rs. 154.75]) in respect of Excise Duty have not been provided for as the matters are subjudice.

4. The Company has mortgaged a portion of land at Birlapur and Chanderia as security for subsidies received under Subsidised Housing Scheme for Industrial Workers.

5. Capital Work-in-progress includes other expenses during construction for project Rs. 40.15 (Previous Year Rs. 15.59).

6. Stores, Spare Parts etc under Schedule 8 "Inventories" include Rs. 135.10 on account of Fixed Assets held for disposal. The same has been valued at Cost or Net Realisable value, whichever is lower.

7. The amount of borrowing costs capitalised during the year is Rs. 91.65 (Previous Year Rs. 126.17).

8. Advances to Employees Rs, 0.37 (Previous Year Rs. 0.37) are under litigation.

9. Certain Sundry Debtors, Loans and Advances and Creditors are subject to confirmation.

10. Loans and Advances include:

(a) Rs. 201.11 (Previous Year Rs. 196.96) to Lok Cements Ltd., a subsidiary, being interest free for setting up new projects and will be realised / adjusted on implementation of projects. The maximun amount outstanding at any time during the year Rs. 201.11 (Previous Year Rs. 196.96).

(b) Rs. Nil (Previous Year Rs. 0.19) to Budge Budge Floorcoverings Ltd., a subsidiary, being interest free. The maximun amount outstanding at any time during the year Rs. 0.19 (Previous Year Rs. 0.19).

11. The Company has made payments to Micro, Small and Medium Enterprises (MSMEs) as defined in the Micro, Small, Medium Enterprises Development Act, 2006, within the appointed date during the year and there are no MSMEs to whom the Company owes dues on account of principal amount together with interest at the Balance Sheet date, hence no additional disclosures have been made. The above information and that given in "Current Liabilities - Schedule 12" regarding MSMEs has been determined to the extent such parties have been identified on the basis of information available with the Company.

12. (a) Outstanding Forward Exchange Contracts booked for the purpose of hedging receivables are USD 2.70 (Previous Year USD 0.70) and payables are USD 45.00 (Previous Year USD 32.50). Outstanding Cross Currency Swap Contracts booked for the purpose of hedging payables are CHF/USD 76.04 and JPY/USD479.31 (Previous Year CHF/USDNil and JPY/USDNil).

(b) Unhedged foreign currency receivables are USD 4.95, GBP Nil and EUR Nil (Previous Year USD 4.08, GBP 0.32 and EUR 0.20 ) and payables are USD 233.93 EUR 2.73, CHF 22.77 and JPY 0.26 (Previous Year USD 36.06, EUR 0.79, CHF Nil and JPY Nil).

(c) The marked to market gain amounting to Rs. 4.16 (Previous Year Rs. 2.36) on Forward Exchange Contacts for firm commitments and highly probable forecast transactions has not been accounted for. .

13. Although the market value of investment in Birla Ericsson Optical Ltd. is lower than cost, considering the long term and strategic nature of the investment, in the opinion of the management, such decline is temporary in nature and no provision is necessary for the same.

14. Liability in respect of compensation/penalty, if any, for non-compliance of Jute Packaging Materials (Compulsory use of Packaging Commodities) Act, 1987 up to 30th June, 1997 being unascertainable shall be accounted for as and when settled.

15. Miscellaneous Income under Schedule-15 includes Rs. 700.76 lacs on account of foreign exchange gain (Previous Year foreign exchange loss of Rs. 120.72 lacs and Rs. 4125 lacs grouped undedr "Other Expenses", in Schedule-20 and "Other Finance Changes" in Schedule-21 respectively).

16. There being uncertainties in realisation from Insurance Claims, the same are accounted for on settlement/realisation.

(viii) The Gratuity Scheme is invested in a Group Gratuity-cum-Life Assurance Cash accumulation policy offered by Life Insurance Corporation (LIC) of India and Cap Assure Group Gratuity Scheme offered by SBI Life Insurance Co. Ltd. The information on the allocation of the fund into major asset classes and expected return on each major class are not readily available. The expected rate of return on plan assets is based on the assumed rate of return provided by Companys Actuary.

(ix) The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

(x) The Company expects to contribute Rs. 600 to its gratuity fund in 2010-11.

(xi> In respect of provident funds in the nature of defined benefit plans, pending the issuance of the Guidance Note from the Actuarial Society of India, the Companys actuary has expressed his inability to reliably measure the provident fund liability and therefore contributions to those provident funds amounting to Rs. 518.95 (Previous Year Rs. 376.35) during the year is recognised as expense and included in Payments to and Provision for Employees. Shortfall of Rs.112.57 (Previous Year Rs. Nil) in the contribution to the provident funds in the nature of defined benefit plans is provided to the extent of the information available with the Company.

18. Repairs to Buildings and Repairs to Machinery, includes Voluntary Retirement Payments to employees on separation Rs. 5.46 and Rs. 11.14 (Previous year Rs. 11.13 and Rs. 110.20) respectively.

19. Sundry Adjustments include prior period adjustments of Rs. 9.47 (Net Debit) [Previous Year Rs. 2.85 (Net Debit)].

20. The Companys Unit: Soorah Jute Mills is under Suspension of Operations since 29th March, 2004.

21. Segment Reporting

B) Secondary Segment Information

The Company operates mainly "in the Indian market and the export turnover being 3.07% (Previous Year 4.72%) of the external sales of the Company, there are no reportable geogeophical segments.

C) Other Disclosures

The Companys operations predominantly relate to Cement and other products are Jute Goods, Generation of Power. PVC Goods, Auto Trims and Steel Castings. Accordingly, these business segments comprise the primary basis of segmental information set out in these Financial Statements,

Inter-segment transfers are based on prevailing market prices except for Iron & Steel Castings and PVC Goods which are based on cost plus profit.

The accounting policies adopted for segment reporting are in line with the accounting policies of the Company.

22. a) As defined in Accounting Standard - 18, the Company has a related party relationship in the nature of control over its subsidiaries namely :

Birla Jute Supply Company Ltd (Formerly Assam Jute Supply Company Ltd.)

Talavadi Cements Ltd.

Lok Cements Ltd.

Budge Budge Roorcoverings Ltd.

Birla Cement (Assam) Ltd.

Birla North-East Cement Ltd.

New-Age Cement Ltd.

Thiruvaiyaru Industries Ltd.

M.P. Birla Group Services Pvt. Ltd.

b) Other related parties with whom transactions have taken place during the year and previous year are :

Key Management Personnel

Shri Bachh Raj Nahar, E.D. & Chief Executive Officer

23. Figures for the Previous Year have been regrouped wherever necessary.

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