(i) Fixed Assets
 
 a) Fixed assets are stated at cost of acquisition or construction (net
 of Cenvat credit availed) less accumulated depreciation / amortization
 and impairment losses if any, except freehold land which is carried at
 cost less impairment losses if any.
 
 b) Advances paid towards the acquisition of fixed assets outstanding at
 each Balance Sheet date and the cost of fixed assets not ready for
 their intended use before such date are disclosed under Capital
 Work-in-Progress.
 
 c) Machinery spares which can be used only in connection with a
 particular item of Fixed Assets and the use of which is irregular, are
 capitalized at cost net of Cenvat.
 
 d) Fixed assets held for disposal are stated at the lower of net book
 value and net realisable value.
 
 (ii) Depreciation and Amortisation
 
 a) Depreciation on fixed assets is provided using the straight-line
 method at the rates prescribed in schedule XIV to the Companies Act,
 1956, as the management estimate of useful life coincides with useful
 life based on the rate mentioned in the Schedule XIV. Depreciation is
 calculated on a pro-rata basis from the date of installation till the
 date the assets are sold or disposed off.
 
 b) Machinery spares which are capitalised are depreciated over the
 useful life of the related fixed asset. The written down value of such
 spares is charged to the Profit and Loss Account, on issue for
 consumption.
 
 c) Cost of leasehold land is amortised over the period of the lease.
 
 d) In respect of quarry freehold land, amortisation reserve is created
 by amortising the cost over the number of years of the mining rights of
 the quarries.
 
 (iii) Impairment
 
 The carrying amounts of assets are reviewed at each Balance Sheet date
 if there is any indication of impairment based on internal / external
 factors. An impairment loss is recognized wherever the carrying amount
 of an asset exceeds its estimated recoverable amount. The recoverable
 amount is the greater of the asset''s net selling price and value in
 use. In assessing the value in use, the estimated future cash flows are
 discounted to their present value using a pre-tax discount rate that
 reflects current market assessments of the time value of money and
 risks specific to the asset. Previously recognized impairment loss is
 further provided or reversed depending on changes in circumstances.
 
 (iv) Intangible Assets
 
 a) Computer Software cost is amortised over a period of three years
 using straight-line method.
 
 b) Costs incurred to gain access to mineral reserves are capitalised
 and amortised over the life of the quarry, which is based on the
 estimated tonnes of raw materials to be extracted from the reserves.
 
 (v) Borrowing Costs
 
 Borrowing costs relating to acquisition and construction of an asset
 which takes substantial period of time to get ready for its intended
 use are included to the extent they relate to the period till such
 assets are ready to be put to use. All other borrowing costs are
 charged to revenue. Borrowing costs consist of interest and other cost
 that an entity incurs in connection with borrowing of funds.
 
 (vi) Investments
 
 Current investments are carried at the lower of cost or fair value.
 Long term investments are stated at cost. Provision for diminution in
 the value of long-term investments is made only if such a decline is
 other than temporary.
 
 (vii) Inventories
 
 Inventories are valued after providing for obsolescence, as follows:
 
 a) Raw Materials, Stores & Spare Parts, Packing Material and Fuels
 
 Lower of cost and net realizable value. However, materials and other
 items held for use in the production of inventories are not written
 down below cost if the finished products in which they will be
 incorporated are expected to be sold at or above cost. Cost is
 determined on a weighted average basis.
 
 b) Work-in-progress and Finished goods
 
 Lower of cost and net realizable value. Cost includes direct materials
 and labour and a proportion of manufacturing overheads based on normal
 operating capacity. Cost of finished goods includes excise duty. Cost
 is determined on a weighted average basis.
 
 Net realizable value is the estimated selling price in the ordinary
 course of business, less estimated costs of completion and estimated
 costs necessary to make the sale.
 
 (viii) Cash and Cash equivalents
 
 Cash and cash equivalents for the purpose of cash flow statement
 comprise cash at bank, in hand (including cheques in hand) and
 short-term investments with an original maturity of three months or
 less.
 
 (ix) Revenue recognition
 
 Revenue is recognized to the extent that it is probable that the
 economic benefits will flow to the Company and the revenue can be
 reliably measured.
 
 Sale of Products and Services
 
 a) Revenue is recognised when the significant risks and rewards of
 ownership of the goods have passed to the buyer. Sales are disclosed
 net of sales tax / VAT, discounts and returns, as applicable. Excise
 duties deducted from turnover (gross) are the amounts that are included
 in the amount of turnover (gross) and not the entire amount of
 liability that arose during the year. Excise duties in respect of
 finished goods are shown separately as an item of Manufacturing
 Expenses and included in the valuation of finished goods.
 
 b) Revenue from services is recognised pro-rata over the period of the
 contract as and when services are rendered.
 
 Interest and Dividend Income
 
 Interest income is recognised on a time proportion basis taking into
 account the amount outstanding and the rate applicable.  Dividend
 income is recognised when the shareholders'' right to receive dividend
 is established by the Balance Sheet date.
 
 (x) Accounting of Claims
 
 a) Claims receivable are accounted at the time when such income has
 been earned by the Company depending on the certainty of receipts.
 Claims payable are accounted at the time of acceptance.
 
 b) Claims raised by Government Authorities regarding taxes and duties,
 which are disputed by the Company, are accounted based on the merits of
 each claim.
 
 (xi) Government Grants and Subsidies
 
 a) Government Grants and subsidies from the government are recognized
 when there is reasonable certainty that the grant/ subsidy will be
 received and all attaching conditions will be complied with.
 
 b) Government grants and subsidies receivable against an expense are
 deducted from such expense and subsidy/grant receivable against a
 specific fixed asset is deducted from cost of the relevant fixed asset.
 
 c) Government grants of the nature of promoters'' contribution are
 credited to Capital Reserve and treated as a part of shareholders''
 funds.
 
 d) Sales include the amount of Sales Tax / VAT refunds received / due
 in accordance with incentive schemes.
 
 (xii) Operating Lease
 
 Where the Company is the lessee
 
 Leases where the lessor effectively retains substantially all the risks
 and benefits of ownership of the leased item, are classified as
 operating leases. Operating lease payments are recognized as an expense
 in the Profit and Loss account on a straight-line basis over the lease
 term.
 
 (xiii) Research and development
 
 Expenditure on Research phase is recognised as an expense when it is
 incurred. Expenditure on development phase which results in creation of
 assets is included in Fixed Assets.
 
 (xiv) Foreign currency transactions
 
 Foreign currency transactions are initially recorded at the rates of
 exchange prevailing on the date of transactions. Foreign currency
 monetary items are subsequently reported using the closing rate.
 Non-monetary items which are carried in terms of historical cost
 denominated in a foreign currency are reported using the exchange rate
 at the date of the transaction. Exchange differences arising on the
 settlement of monetary items or on reporting Company''s monetary items
 at rates different from those at which they were initially recorded
 during the year, or reported in previous financial statements, are
 recognised as income or as expenses in the year in which they arise.
 The financial statements of an integral foreign operation are
 translated as if the transactions of the foreign operation have been
 those of the company itself.
 
 Derivative Instruments
 
 As per Accounting Standard (''AS'') 11 – ''The Effects of Changes in
 Foreign Exchange Rates'' the premium or the discount on forward exchange
 contracts not relating to firm commitments or highly probable forecast
 transactions and not intended for trading or speculation purpose is
 amortized as expense or income over the life of the contract. As per
 the ICAI Announcement, accounting for derivative contracts, other than
 those covered under AS – 11, are marked to market on a portfolio basis,
 and the net loss after considering the offsetting effect on the
 underlying hedge item is charged to the income statement. Net gains are
 ignored.
 
 (xv) Retirement and Other employee benefits
 
 a) Defined Contribution Plan
 
 Contribution to Officer''s Superannuation Fund, ESIC and Labour Welfare
 Fund are recognised as an expense in the Profit and Loss Account, as
 they are incurred. There are no other obligations other than the
 contribution payable to the respective trusts.
 
 b) Defined Benefit Plan and Other Long Term Benefits
 
 Retirement benefits in the form of gratuity, additional gratuity,
 provident fund, post retirement medical benefit schemes, medical
 benefits under voluntary retirement scheme and other long term benefits
 in the form of leave encashment, silver jubilee and long service awards
 are determined on the basis of an actuarial valuation using the
 projected unit credit method as at Balance Sheet date. Actuarial
 gains/losses are recognized immediately in the Profit and Loss Account.
 
 c) Short term compensated absences are provided based on past
 experience of leave availed.
 
 d) Payments made under the Voluntary Retirement Scheme are charged to
 the Profit and Loss Account immediately.
 
 (xvi) Employees Stock Option Scheme
 
 The intrinsic value of option granted under Employees Stock Option
 Schemes is written off over the vesting period.
 
 (xvii) Income taxes
 
 Tax expense comprises of current and deferred tax and includes any
 adjustments related to past periods in current and / or deferred tax
 provisions that may become necessary due to certain developments or
 reviews during the relevant period. Current income tax is measured at
 the amount expected to be paid to the tax authorities in accordance
 with the Indian Income Tax Act, 1961 enacted in India.
 
 Deferred income taxes reflect the impact of current year''s timing
 differences between taxable income and accounting income for the year
 and reversal of timing differences of earlier years.
 
 Deferred tax is measured based on the tax rates and the tax laws
 enacted or substantively enacted at the Balance Sheet date.  Deferred
 tax assets are recognised only to the extent that there is reasonable
 certainty that sufficient future taxable income will be available
 against which such deferred tax assets can be realised.
 
 The carrying amount of deferred tax assets are reviewed at each Balance
 Sheet date. The Company writes-down the carrying amount of a deferred
 tax asset to the extent that it is no longer reasonably certain that
 sufficient future taxable income will be available against which
 deferred tax asset can be realised. Any such write-down is reversed to
 the extent that it becomes reasonably certain that sufficient future
 taxable income will be available.
 
 (xviii) Contingencies / Provisions
 
 A provision is recognised when an enterprise has a present obligation
 as a result of past event; it is probable that an outflow of resources
 embodying economic benefit will be required to settle the obligation,
 in respect of which a reliable estimate can be made. Provisions are not
 discounted to its present value and are determined based on best
 estimate required to settle the obligation at the Balance Sheet date.
 These are reviewed at each Balance Sheet date and adjusted to reflect
 the current best estimates. A contingent liability is disclosed, unless
 the possibility of an outflow of resources embodying the economic
 benefit is remote.
 
 (xix) Earnings per share
 
 Basic earnings per share are calculated by dividing the net profit or
 loss for the year attributable to equity shareholders by the weighted
 average number of equity shares outstanding during the year.
 
 For the purpose of calculating diluted earnings per share, the net
 profit or loss for the year attributable to equity shareholders and the
 weighted average number of shares outstanding during the year are
 adjusted for the effects of all dilutive potential equity shares.
 
 (xx) Mines Restoration Expenditure
 
 The Company provides for the estimated expenditure required to restore
 quarries and mines. The initial recognition of the provision for mines
 restoration cost comprises of the estimated costs for restoration
 caused by operations necessary before the raw materials can be
 exploited. Actual payments for restoration are charged directly against
 the provision. The present obligation is revised annually based on
 technical estimates by internal or external specialists.