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Notes to Accounts of Birla Corporation Ltd.

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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