| NOTES ON ACCOUNTS FOR THE YEAR ENDED 31ST MARCH, 2009 | ||
| m. | Goodwill on Consolidation | |
| 2. | e. | The excess of cost to the Parent Company of its investment in the subsidiary over the parent's portion of equity of the subsidiary at the date it became subsidiary is recognised in the Consolidated Financial Statements as Goodwill. |
| 3. | Expansion activities taken up in 2006-07 relating to fourth production line at Parent Company's Vasavadatta Cement Unit for 1.65 million tons capacity increase of cement is expected to be completed by fi rst quarter of 2009-10. The related Clinker Plant is under trial run since 12th March, 2009. | |
| 17.5 MW Captive power plant taken up along with aforesaid cement expansion commenced power generation effective 28th February, 2009. | ||
| The greenfield tyre project in Uttarakhand with production capacity of 257 MT / day, taken up in 2006-07, has commenced commercial production in phases during the year and is complete. | ||
| Radial tyre (100 MT/day), bias tyre (125 MT/day) and motor cycle tyre (70 MT/day) projects taken up during the year are expected to commence commercial production by end 2009 / early 2010. | ||
| 4. | The Parent Company intends to hive off its Hindusthan Heavy Chemicals unit (the Unit) as reflected in the Board Resolution of 31st January, 2006 and later on consented by the shareholders by postal ballot of 24th March, 2006. The Unit is not significant in terms of the consolidated total assets / liabilities / revenue / expenses / cashflows. Pending disposal of the Unit, the Unit is in operation and results thereof, have been reflected in these Accounts. | |
| 5. | a. | The Parent Company's Spun Pipes and Foundries Unit is under suspension of work effective 2nd May, 2008. |
| b. | Consequent to sluggish demand resulting, interalia from partial production shutdown by certain major automobile manufacturers, the Parent Company's Tyre Unit declared suspension of production during the year for 41 days at its Balasore factory. | |
