a) Accounting Convention
 
 The financial statements are prepared in accordance with applicable
 Accounting Standards in India. A summary of important accounting
 policies, which have been applied consistently, is set out below.
 
 This is the first year of application of the revised schedule VI to the
 Companies Act, 1956 for the preparation of the financial statements of
 the Company. The revised schedule VI introduces some significant
 conceptual changes as well as new disclosures. These include
 classification of all assets and liabilities into current and
 non-current. The previous year figures have also undergone a major
 reclassification to comply with the requirements of the revised
 Schedule VI.
 
 b) Use of Estimates
 
 The preparation of financial statements requires estimates and
 assumptions to be made that affect the reported amount of assets and
 liabilities on the date of financial statements and reported amount of
 revenue and expenses during the reporting period. Difference between
 actual results and estimates are recognised in the period in which the
 results are known/ materialised.
 
 Current and Non-current classification
 
 All assets and liabilities are classified into current and non-current.
 
 Assets
 
 An asset is classified as current when it satisfies any of the
 following criteria :
 
 a) It is expected to be realised in, or is intended for sale or
 consumption in, the company''s normal operation cycle;
 
 b) It is held primarily for the purpose of being traded;
 
 c) It is expected to be realised within 12 months after the reporting
 date ; or
 
 d) It is cash or cash equivalent unless it is restricted from being
 exchanged or used to settle a liability for at least 12 months after
 the reporting date.
 
 Current assets include the current portion of non-current financial
 assets.
 
 All other assets are classified as non-current.
 
 Liabilities
 
 A liability is classified as current when it satisfies any of the
 following criteria;
 
 a) It is expected to be settled in the company''s normal operating cycle
 
 b) It is held primarily for the purpose of being traded;
 
 c) It is due to be settled within 12 months after the reporting date;
 or
 
 d) The Company does not have an unconditional right to defer settlement
 of liability for at least 12 months after the reporting date. Terms of
 a liability that could, at the option of the counterparty, result in
 its settlement by issue of equity instruments do not affects its
 classification.
 
 Current liability include current portion of non-current financial
 liabilities.
 
 All other liabilities are classified as non-current.
 
 Operating Cycle
 
 Operating cycle is the time between the acquisition of assets for
 processing and their realisation in cash or cash equivalents.
 
 c) Fixed Assets
 
 Fixed Assets are stated at cost. Cost includes cost of acquisition,
 non-refundable levies, directly attributable cost of bringing the
 assets to the working condition for intended use, expenditure during
 construction period and interest up to the date the assets is put to
 use.  (And also refer note i).
 
 d) Depreciation
 
 Depreciation on Fixed Assets is charged on Straight Line Method as per
 Schedule XIV of the companies Act, 1956, except in case of assets added
 or disposed off it is charged on prorate basis with reference to the
 date of addition/deletion.
 
 Assets costing Rs.5,000/- or less are being fully depreciated in the
 year of acquisition Intangible assets are amortized on straight line
 basis over the estimated useful life of the assets.
 
 e) Amortisation
 
 Leasehold quarries and housing tenaments acquired under lease cum sale
 agreement shall be amortised after execution of Sale Deeds. Expenditure
 incurred on acquisition and development of leasehold quarries are
 amortised over the unexpired period of their lease after these become
 operational. The company has purchased a Time Sharing Holiday Resort
 from Club Mahindra Holidays. The same is effective from April 2003 for
 a period of 25 years and will be amortised equally over a period of 25
 years. Capital issue expenses are amortised over a period of 5 years.
 
 f) Intangible Assets
 
 Intangible assets comprises of application software stated at its
 acquisition cost less accumulated depreciation.
 
 g) Impairment of Assets
 
 In accordance with Accounting Standard 28 AS (28) on ''Impairment of
 Assets'' where there is an indication of impairment of the Company''s
 assets, the carrying amount of the company''s assets are reviewed at
 each balance sheet date to determine whether there is any impairment.
 The recoverable amount of the assets (or where applicable that of the
 cash generating unit to which the asset belongs) is estimated at higher
 of its net selling price and its value in use.  Value in use is the
 present value of estimated future cash flows expected to arise from the
 continuing use of the assets and from its disposal at the end of its
 useful life. An Impairment loss is charged to the Profit & Loss Account
 in the year in which the carrying amount of the asset or a cash
 generating unit exceeds its recoverable amount. The impairment loss
 recognised in prior accounting period is reversed if there has been a
 change in the estimate of recoverable amount.
 
 h) Investment
 
 Investment are valued at acquisition cost.
 
 i) Inventories
 
 i) Raw materials is valued at actual cost or net realisable value
 whichever is lower. Stores and spares & packaging materials are valued
 at weighted average cost or net realisable value whichever is lower.
 
 ii) Work in Progress and Finished Products are valued at estimated cost
 or net realisable value whichever is lower.
 
 iii) Scraps & Rejects are valued at estimated realisable value.
 
 Finished goods and WIP include cost of conversion and other costs
 incurred in bringing the inventories to the present location and
 condition.
 
 Estimated realisable value is calculated on the basis of current
 selling price less the .normal selling expenses incurred in making the
 sale.
 
 j) Foreign Currency Transaction
 
 The transaction in foreign currencies on revenue account are stated at
 the rates of exchange prevailing on the date of transaction.
 Outstanding Foreign currency assets/liabilities are translated at the
 exchange rate prevailing as on Balance Sheet date. Gains or losses on
 these assets & liabilities relating to the acquisition of fixed assets
 are adjusted to the cost of such fixed assets and those relating to
 other accounts are recognised in the Profit & Loss Account.
 
 k) Revenue Recognition
 
 i) Revenue/Income and Cost/Expenditure are generally accounted for on
 accrual basis as they are earned or incurred, except, in case of
 significant uncertainties.
 
 ii) Subsidy receivable against an expense is deducted from such
 expense.
 
 iii) Domestic Sales is exclusive of excise duty
 
 iv) Revenue from services is recognised as and when services are
 rendered and related costs are incurred. 
 
 v) Interest income is recognised on a time proportion basis taking into
 account the amount outstanding and the interest rate applicable.
 
 I) Retirement Benefits
 
 Defined contribution scheme : Company''s contribution towards Provident
 Fund and Superannuation Fund paid/payable during the year are charged
 to Profit & Loss Account.
 
 Defined Benefit Plan : The company has a defined benefit gratuity plan
 covering all its employees. Gratuity is covered under a scheme of LIC
 and contribution in respect of such scheme are recognized in Profit &
 Loss Account. The liability at the Balance Sheet date is provided for
 based on actuarial valuation carried out by Life Insurance Corporation
 of India in accordance with AS 15 of employee benefits issued by the
 Institute of Chartered Accountants of India.
 
 Disclosure in respect of DCS and DBS as required under AS 15 have been
 given in Note 5 below to the extent practical and the availability of
 information.
 
 m) Leases
 
 Lease rentals under an operating lease, are recognised as an expense in
 the statement of profit and loss on a straight line basis over the
 lease term.
 
 n) Expenditure on Expansion
 
 Expenditure directly related to construction activity is capitalised.
 Indirect expenditure (including borrowing cost) directly related to
 construction or incidental thereto is allocated amongst the assets
 created on pro-rata basis.
 
 o) Governments Grants
 
 Government grants in the nature of State Investment subsidy are
 accounted for on cash basis and treated as capital reserve.
 
 p) Taxation
 
 Income-Tax expense comprises Current tax and Deferred tax charge or
 credit. Provision for current tax is made on the assessable income at
 the tax rate applicable to the relevant assessment year. The Deferred
 tax Asset and Deferred tax Liability is calculated by applying tax rate
 and tax laws that have been enacted or substantively enacted by the
 Balance Sheet date. Deferred tax Assets arising mainly on account of
 brought forward losses and unabsored depreciation under tax laws, are
 recognised, only if there is a virtual certainty of its realisation,
 supported by convincing evidence. Deferred tax Assets on account of
 other timing differences are recognised, only to the extent there is a
 reasonable certainty of its realisation. At each Balance Sheet date,
 the carrying amount of Deferred Tax Assets are reviewed to reassure
 realisation.  
 
 q) Earning per share
 
 Basic and diluted earning per share are computed by dividing the net
 profit after tax attributable to equity shareholders for the year, with
 the weighted number of equity shares outstanding during the year.
 
 r) Contingent Liabilities
 
 Contingent liabilities are not provided for and are generally disclosed
 by way of notes to account.