Accounting Policies of India Cements Capital Ltd. Company

Mar 31, 2015

A. The Company complies with the directions of the Reserve Bank of India for Non deposit taking Non- Banking Financial Companies and the applicable Accounting Standards.

B. Income from Hire Purchase is accounted on accrual and due basis, as per the Hire Purchase Agreements under Internal Rate of Return Method.

C. In accordance with Accounting Standard on Income Recognition (AS-9), Additional Finance Charges and Compensation Charges for delayed repayment of Lease, Hire Purchase and Loan installments and income from forex advisory are accounted as and when received as they are contingent on realization.

D. Depreciation

Depreciation of Fixed Assets is charged over the useful life of the fixed assets on a straight-line basis at the rates and in the manner prescribed in Schedule II of the Companies Act 2013. In respect of assets which have no remaining useful life, the carrying cost less residual value as on 31st March 14 has been absorbed against retained earnings.

E. Valuation of Fixed Assets

Fixed Assets are disclosed at historical cost, less accumulated depreciation.

F. Retirement Benefits

a) Defined contribution plans

The Company makes Provident Fund and Superannuation Fund contributions to defined contribution retirement benefit plans for qualifying employee. Under the schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Provident Fund scheme additionally requires the Company to guarantee payment of interest at rates notified by the Central Government from time to time, for which shortfall has been provided for as at the Balance Sheet date.

b) Defined benefit plans

The Company makes annual contributions to the Employees Group Gratuity-cum-Life Assurance Scheme of the Life Insurance Corporation of India, a funded defined benefit plan for qualifying employee. The scheme provides for lump sum payment to vested employees at retirement, death while in employment or on termination of employment.

Leave encashment is recognized as short term employee benefits and is expected to be utilised within twelve months after the end of the year and is recognized as liability and provided for.

G. Investments

Long term investments in subsidiaries are strategic investments and are recorded at Cost and temporary diminution, if any, in the market value of investments is therefore not considered.

H. Deferred Taxation

Deferred Tax assets and liabilities are recognized for the future tax consequences of timing differences between carrying value of the asset and liabilities and their respective tax bases using enacted or substantially enacted tax rates. Deferred Tax Assets, subject to consideration of prudence are recognized and carried forward only to the extent they can be realized.

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Mar 31, 2014

A. The Company complies with the directions of the Reserve Bank of India for Non deposit taking Non- Banking Financial Companies and the applicable Accounting Standards.

B. Income from Hire Purchase is accounted on accrual and due basis, as per the Hire Purchase Agreements under Internal Rate of Return Method.

C. In accordance with Accounting Standard on Income Recognition (AS-9), Additional Finance Charges and Compensation Charges for delayed repayment of Lease, Hire Purchase and Loan installments and Income from Forex Advisory are accounted as and when received as they are contingent on realisation.

D. Depreciation

Depreciation on Fixed Assets is provided under straight-line method in accordance with Schedule XIV of the Companies Act 1956.

E. Valuation of Fixed Assets

Fixed Assets are disclosed at historical cost, less accumulated depreciation.

F. Retirement Benefits

a) Defined contribution plans

The Company makes Provident Fund and Superannuation Fund contributions to defined contribution retirement benefit plans for qualifying employee. Under the schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Provident Fund scheme additionally requires the Company to guarantee payment of interest at rates notified by the Central Government from time to time, for which shortfall has been provided for as at the Balance Sheet date.

b) Defined benefit plans

The Company makes annual contributions to the Employees'' Group Gratuity-cum-Life Assurance Scheme of the Life Insurance Corporation of India, a funded defined benefit plan for qualifying employee. The scheme provides for lump sum payment to vested employees at retirement, death while in employment or on termination of employment.

Leave encashment is recognised as short term employee benefits and is expected to be utilised within twelve months after the end of the year and is recognised as liability and provided for.

G. Investments

Long term investments in subsidiaries are strategic investments and are recorded at Cost and temporary diminution, if any, in the market value of investments is therefore not considered.

H. Deferred Taxation

Deferred Tax assets and liabilities are recognised for the future tax consequences of timing differences between carrying value of the assets and liabilities and their respective tax bases using enacted or substantially enacted tax rates. Deferred Tax Assets, subject to consideration of prudence are recognised and carried forward only to the extent they can be realised.

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Mar 31, 2013

A. The Company complies with the directions of the Reserve Bank of India for Non deposit taking Non- Banking Financial Companies and the applicable Accounting Standards

B. Income from Hire Purchase is accounted on accrual and due basis, as per the Hire Purchase Agreements under Internal Rate of Return Method.

C. In accordance with Accounting Standard on Income Recognition (AS-9), Additional Finance Charges and Compensation charges for delayed repayment of Lease, Hire Purchase and Loan installments and income from forex advisory are accounted as and when received as they are contingent on realisation.

D. Depreciation

Depreciation on Fixed Assets is provided under straight-line method in accordance with Schedule XIV of the Companies Act 1956.

E. Valuation of Fixed Assets

Fixed Assets are disclosed at historical cost, less accumulated depreciation.

F. Retirement Benefits

a) Defined contribution plans

The Company makes Provident Fund and Superannuation Fund contributions to defined contribution retirement benefit plans for qualifying employee. Under the schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Provident Fund scheme additionally requires the Company to guarantee payment of interest at rates notified by the Central Government from time to time, for which shortfall has been provided for as at the Balance Sheet date.

b) Defined benefit plans

The Company makes annual contributions to the Employees'' Group Gratuity-cum-Life Assurance Scheme of the Life Insurance Corporation of India, a funded defined benefit plan for qualifying employee. The scheme provides for lump sum payment to vested employees at retirement, death while in employment or on termination of employment

Leave encashment is recognised as short term employee benefits and is expected to be utilised within twelve months after the end of tiie year and is recognised as liability and provided for.

G. Investments

Long term investments in subsidiaries are strategic investments and are recorded at Cost and temporary diminution, if any, in the market value of investments is therefore not considered.

H. Deferred Taxation

Deferred Tax assets and liabilities are recognised for the future tax consequences of timing differences between carrying value of the asset and liabilities and their respective tax bases using enacted or substantially enacted tax rates. Deferred Tax Assets, subject to consideration of prudence are recognised and carried forward only to the extent they can be realised.

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Mar 31, 2012

A. The Company complies with the directions of the Reserve Bank of India for Non deposit taking Non- Banking Financial Companies and the applicable Accounting Standards.

B. Income from Hire Purchase is accounted on accrual and due basis, as per the Hire Purchase Agreements under Internal Rate of Return Method.

C. In accordance with Accounting Standard on Income Recognition (AS-9), Additional Finance Charges and Compensation charges for delayed repayment of Lease, Hire Purchase and Loan installments and income from forex advisory are accounted as and when received as they are contingent on realisation.

D. Depreciation

Depreciation on Fixed Assets is provided under straight-line method in accordance with Schedule XIV of the Companies Act 1956.

E. Valuation of Fixed Assets

Fixed Assets are disclosed at historical cost, less accumulated depreciation.

F. Retirement Benefits

a) Defined contribution plans

The Company makes Provident Fund and Superannuation Fund contributions to defined contribution retirement benefit plans for qualifying employee. Under the schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Provident Fund scheme additionally requires the Company to guarantee payment of interest at rates notified by the Central Government from time to time, for which shortfall has been provided for as at the Balance Sheet date.

b) Defined benefit plans

The Company makes annual contributions to the Employees' Group Gratuity-cum-Life Assurance Scheme of the Life Insurance Corporation of India, a funded defined benefit plan for qualifying employee. The scheme provides for lump sum payment to vested employees at retirement, death while in employment or on termination of employment.

Leave encashment is recognised as short terms employee benefits and is expected to be utilised within twelve months after the end of the year and is recognised as liability and provided for.

G. Investments

Long term investments in subsidiaries are strategic investments and are recorded at Cost and temporary diminution, if any, in the market value of investments is therefore not considered.

H. Deferred Taxation

Deferred Tax assets and liabilities are recognised for the future tax consequences of timing differences between carrying value of the asset and liabilities and their respective tax bases using enacted or substantially enacted tax rates. Deferred Tax Assets, subject to consideration of prudence are recognised and carried forward only to the extent they can be realised.

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Mar 31, 2010

A. The Company complies with all the directions of the Reserve Bank of India for Non deposit taking Non-Banking Financial Companies and the applicable Accounting Standards.

B. Income from Hire Purchase is accounted on accrual and due basis, as per the Hire Purchase Agreements under Internal Rate of Return Method.

C. In accordance with Accounting Standard on Income Recognition (AS-9), Additional Finance Charges and Compensation charges for delayed repayment of Lease, Hire Purchase and Loan installments and income from forex advisory are accounted as and when received as they are contingent on realisation.

D. Depreciation

Depreciation on Fixed Assets is provided under straight-line method in accordance with Schedule XIV of the Companies Act, 1956.

E. Valuation of Fixed Assets

Fixed Assets are disclosed at historical cost, less accumulated depreciation.

F. Retirement Benefits

a) Defined contribution plans

The Company makes Provident Fund and Superannuation Fund contributions to defined contribution retirement benefit plans for qualifying employee. Under the schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Provident Fund scheme additionally requires the Company to guarantee payment of interest at rates notified by the Central Government from time to time, for which shortfall has been provided for as at the Balance Sheet date.

b) Defined benefit plans

The company makes annual contributions to the Employees Group Gratuity-cum-Life Assurance Scheme of the Life Insurance Corporation of India, a funded defined benefit plan for qualifying employee. The scheme provides for lump sum payment to vested employees at retirement, death while in employment or on termination of employment

Leave encashment is recongnised as short terms employee benefits and is expected to be utilised within twelve months after the end of the year and is recongnised as liability and provided for.

G. Investments

Long term investments in subsidiaries are strategic investments and are recorded at Cost and temporary diminution, if any, in the market value of investments is therefore not considered.

H. Deferred Taxation

Deferred Tax assets and liabilities are recognised for the future tax consequences of timing differences between carrying value of the asset and liabilities and their respective tax bases using enacted or substantially enacted tax rates. Deferred Tax Assets, subject to consideration of prudence are recognised and carried forward only to the extent they can be realised.