Secured Loans
 
 1. Debentures
 
 1,01,714 (Previous Year 1,01,714) privately placed Zero Coupon
 Convertible Debentures of Rs. 1,000 each allotted w.e.f. April 25,2000,
 are redeemable at par in three equal annual installments at the end of
 5th, 6th and 7th year commencing from April 25, 2005. These debentures
 are secured by way of mortgage and first charge on all immovable
 properties of the Company, both present and future, vide trust deed
 dated May 29,2000, the charges to rank pari-passu with the mortgage and
 charges created/to be created in favour of existing first charge
 holders for their respective loans. Debentureholder will have an option
 to convert the above debentures into equity shares of the Company any
 time during the currency of debentures after giving 90 days notice at a
 price to be governed by prevailing SEBI guidelines as may be applicable
 at the time of conversion.
 
 2.  Loans from Banks aggregating Rs.3800 lacs (Previous Year Rs.7650
 lacs) are secured by a first charge ranking pari-passu with the charges
 created by way of hypothecation of entire current assets and movable
 plant and machinery of the Company and are also secured by way of a
 first pari-passu mortgage/charge to be created on all immovable
 properties of the Company-situated at Village Rabriyawas in the State
 of Rajasthan, both present and future. Due within a year Rs. 3800 lacs
 (Previous Year Rs. 5650 lacs).
 
 3.  Loans from banks aggregating Rs. Nil (Previous Year Rs. 10000 lacs)
 were to be secured by way of first pari-passu mortgage/charge to be
 created on all immovable properties of the Company situated at Village
 Rabriyawas in the State of Rajasthan, both present and future.
 
 (1) Gross block of Building and Roads includes Rs.89.51 lacs (Previous
 Year Rs.89.51 lacs) being cost of roads constructed by the Company,
 ownership of which vests with the Government/Local Authorities.
 
 (2) Additions to Plant and Machinery during the Year includes Rs. Nil
 (Previous Year Rs. 5.22 lacs) on account of foreign exchange
 fluctuations.
 
 4. The Company has not received any claim for interest from any
 supplier covered under the Interest on Delayed Payments to Small Scale
 and Ancillary Industrial Undertaking Act, 1993. There are no small
 scale industrial undertakings to whom dues are outstanding for more
 than 30 days as at June 30, 2003.
 
 5. The Company has only one business segment Cement and one
 geographical segment as the Sales of the Company are only in India.
 
 6. Earnings per share
 
 (Loss) for the year after adjustment of prior period items (Rs. in
 lacs)
 
 Weighted average number of equity shares outstanding
 
 Basic\diluted earnings per share in rupees (face value- Rs. 10 per
 share)
 
 7. As the Company has substantial unabsorbed depreciation and carried
 forward business losses under the Income Tax Act, 1961 and is unlikely
 to have taxable income in the foreseeable future, the deferred tax
 asset/liabilities have not been recognised. This is in accordance with
 Accounting Standard (AS-22) Accounting for Taxes on Income, issued by
 The Institute of Chartered Accountants of India.
 
 8. Consequent upon erosion of the entire net worth as on 30.06.2001,
 the Company has been declared as a Sick Industrial Company by the Board
 for Industrial and Financial Reconstruction (BIFR) .The Company has
 submitted a Draft Rehabilitation Scheme for the Approval of BIFR.
 
 9. Changes in Accounting Policies:
 
 a.  Depreciation on vehicles,which was hitherto provided on Straight
 Line Method, has now been provided on Written Down Value
 
 Method with retrospective effect.
 
 Further, pro-rata depreciation (where applicable) which was hitherto
 calculated with reference to the date of additions or deletions of the
 fixed assets as the case may be, has now been provided for with
 reference to the month of additions or deletions of fixed assets, as
 the case may be.
 
 Consequent upon the above changes the depreciation and loss for the
 year are higher by Rs. 28.86 lacs b.  Inventory of Coal, Fuel, Packing
 Materials, Stores and Spares and Raw Materials.which was hitherto
 valued on Annual Weighted
 
 Average basis, from this year, has been valued on FIFO basis and
 consequently the aggregate consumption of these items and loss for the
 year are lower by Rs. 9.32 lacs
 
 c. Leave encashment, which was hitherto valued on arithmetical basis,
 from this year, has been valued on an actuarial basis and consequently,
 the provision for leave encashment and loss for the year are lower by
 Rs. 4.83 lacs.
 
 d.  Consequent upon the above changes, net assets are lower and debit
 balance in Profit and Loss Account is higher by Rs. 14.71 lacs.
 
 10. Figures for the previous year have been regrouped/restated,
 wherever material.