| 1. | Significant Accounting Policies | |
| l. | Government Grants | |
| Grants of Capital nature and related to specific Fixed Assets are deducted from gross value of assets. Other grants of Capital nature are credited to Capital Reserve. Grant related to revenue are recognised in the Profit and Loss Account on a systematic basis to match them with related costs. | ||
| 2. | Expansion activities taken up in 2006-07 relating to fourth production line at Company's Vasavadatta Cement Unit for 1.65 million tons capacity increase of cement is expected to be completed by first 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. | ||
| 3. | The 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 Company's 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. | |
| 4. | a. | The 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 Company's Tyre Unit declared suspension of production during the year for 41 days at its Balasore factory. | |
