Finance Division Policies:
 
 A.  The fixed assets of the Company are valued at historical cost less
 depreciation and lease adjustment account.
 
 B.  The company has provided depreciation on fixed assets as per
 written down value method under the Companies (Amendment) Act, 1988.
 Further depreciation on additions & sales of fixed assets during the
 year has been provided on pro-rata basis.
 
 C.  Stock on Hire/Hypothecation/Loan Syndication Principal represents
 disbursed value of assets less capital repayments matured including
 un-matured finance/hypothecation/loan syndication charges thereon as
 per IRR. The un-matured finance/hypothecation/loan syndication charges
 are reduced from stock on hire/hypothecation/loan syndication to
 reflect the net principal outstanding.
 
 D.  Lease Rentals are accounted for on accrual basis and full months
 rental is considered as income irrespective of the date on which the
 lease rentals fall due during the month. Further the company accounts
 for income arising out of leasing activities on the method recommended
 by the Institute of Chartered Accountants of India. For assets leased
 up to 31st March 2001, the lease income is recognised at an Internal
 Rate of Return (IRR) on the principal amount outstanding at the due
 date of the lease rental. An annual lease equalisation charge is
 computed by deducting from lease rentals the income derived at IRR,
 which is then compared with depreciation provided. The difference is
 adjusted through lease equalisation in lease adjustment account. No
 assets have been leased after 1-4-2001 and therefore the mandatory
 provisions under Accounting standard (A 8-9) in respect of leased
 assets after 1-4-2001 do not apply.
 
 E.  Hire Purchase Finance Charges/Hypothecation charges/Loan
 Syndication Charges have been accounted for on instalment due basis
 based on Internal Rate of Return.
 
 F.  All Incomes and expenses have been accounted for on accrual basis.
 Overdue charges from hirers/ lessees are accounted for on realisation.
 
 G.  Income Recognition, assets classification and provisioning in
 respect of Non- Performing Assets has been done in accordance with the
 Reserve Bank of India Directions, 1998 as amended upto 12th May, 1998.
 Income in respect of non performing assets has been considered on
 realisation basis.
 
 H. Revenue is being recognised in accordance with the guidance note on
 Accrual Basis of accounting issued by the Institute of Chartered
 Accountants of India. Accordingly, if there are any uncertainties in
 the realisation of income, the same are not accounted for.
 
 I.  Closing Stock of Shares/Securities has been valued at cost or
 market price which ever is lower.
 
 Manufacturing (Cement & Pole) Division policies:
 
 J. The accounts are prepared on the historical cost basis and on the
 accounting principles of a going concern.
 
 K. Accounting policies not specifically referred to otherwise are
 consistent and in consonance with generally accepted accounting
 principles.
 
 L.  Sales represent invoiced value of goods sold net of excise duty.
 
 M. Depreciation on Fixed Assets has been provided in accordance with
 the rates prescribed under Straight Line Method & in the manner
 specified in Schedule XIV of the Companies Act., 1956.
 
 N. Raw Material, Packing Materials, Stores and spares, Finished goods,
 Semi-finished goods & Stocks in process are valued at cost or market
 price whichever is lower, in accordance with valuation principles laid
 out in AS-2 issued by The Institute of Chartered Accountants of India.
 
 O.  Investments are stated at cost.  Other policies:
 
 P. Accounting for taxes on Income- Income Taxes are accounted for in
 accordance with Accounting Standard 22 on Accounting for Taxes on
 Income (AS-22) issued by the Institute of Chartered Accountants of
 India. Tax expenses comprise both current and deferred tax.
 
 Q. Current tax is determined as the amount of tax payable in respect of
 taxable income for the period using the applicable tax rates and tax
 laws. Deferred tax assets and liabilities are recognized, subject to
 consideration of prudence, on timing differences, being the difference
 between taxable incomes and accounting income, that originate in one
 period and are capable of reversal in one or more subsequent periods
 and are measured using tax rates enacted or substantively enacted as at
 the Balance Sheet date. The carrying amount of deferred tax assets and
 liabilities are reviewed at each balance sheet date.
 
 R. Contribution to Provident Fund is accounted for on accrual basis and
 charged to Profit and Loss Account.
 
 S. Provision for Gratuity Payable has been made in accordance with the
 period of qualifying service put in by the each employee of the Company
 from the date of joining and upto the end of the financial year.