| 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 | Amalgamation of Bulland Buildmart Private Limited, a wholly owned subsidiary Company (Transferor Company) with Kesoram Industries Limited (Transferee Company) | ||
| 2.1 | Pursuant to a scheme of Amalgamation (the ‘Scheme’) sanctioned by the High Court at Calcutta in July 2009 under the provisions of the Companies Act,1956, the Transferor Company has been amalgamated with Transferee Company in these accounts with retrospective effect from 1st October, 2008 (Appointed Date). The Scheme has been accounted for using the ‘Purchase Method’ set out in Accounting Standard 14 on ‘Accounting for Amalgamation’. | ||
| 2.2 | The Transferor Company was primarily engaged in the business of purchasing land for sale/ development and civil & constructional work relating to building, roads, bridges etc. | ||
| 2.3 | In accordance with the scheme, all assets and liabilities of the Transferor Company immediately preceding the Appointed Date have been incorporated in the books of account of Transferee Company at their respective book values on the basis of audited accounts of the Tranferor Company. The net assets as per the books of account of the Transferor Company after cancellation of investment of the Transferee Company in Tranferor Company as on 30th September, 2008 has been credited to Capital Reserve of the Transferee Company in 2009-10 and the results of the Tranferor Company for the period 1st October, 2008 to 31st March, 2009 has been adjusted with the opening credit balance in Profit and Loss Account of Transferee Company. | ||
| 3 | (a) | 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 has commenced commercial production on 7th August, 2009. The related clinker plant commenced commercial production on 1st June, 2009. | |
| (b) | Radial truck tyre (140 MT/day) and motor cycle tyre (95 MT/day) projects taken in 2008-09 at Uttarakhand commenced commercial production in March, 2010 and in phases from October, 2009 to March, 2010 respectively. Further expansion in bias tyre at Uttarakhand by 60 MT/day taken up in 2008-09 has been completed during the year. | ||
| (c) | Radial car tyre project with 80 MT/day capacity at Balasore and further expansion of radial truck tyre by 85 MT/day at Uttarakhand taken up during the year are expected to commence commercial production by the end 2010-2011. | ||
| 4 | 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. | ||
| The Company’s Spun Pipes and Foundries Unit is under suspension of work effective 2nd May, 2008. | |||
