1 Historical Cost Basis :
 
 The Financial statements are prepared under the historical cost
 convention and in accordance with applicable mandatory Accounting
 Standards.
 
 2 Revenue Recognition :
 
 The Company generally follows accrual system of accounting as required
 under Section 209(3) (b) of the Companies Act, 1956. However,
 considering uncertainties and / or difficulties involved in estimation
 of liabilities and / or final determination of refund claims filed by
 the Company, the following items are considered to be accrued and
 accounted only when settled or agreed to with the party and / or
 receipts of necessary amount.
 
 i) Claim against Railways for shortages / damages for cement in transit
 
 ii) Insurance Claims
 
 iii) Scrap Sales
 
 iv) Octroi Refund Claims
 
 3 Fixed Asset and Depreciation :
 
 a) Fixed assets include all expenditure of capital nature and are
 stated at cost (net of Cenvat, wherever applicable) less accumulated
 depreciation.
 
 b) Depreciation on fixed assets is provided on straight-line method at
 the rates prescribed in Schedule XIV to the Companies Act, 1956.
 
 c) In respect of addition and sales of assets during the year,
 depreciation is provided on prorata monthly basis.
 
 4 Impairment of Fixed Assets :
 
 a) Consideration is given at each balance sheet date to determine
 whether there is any indication of impairment of the carrying amount of
 the Companys fixed assets. If any indication exists, an assets
 recoverable amount is estimated. An impairment loss is recognized
 whenever the carrying amount of an asset exceeds its recoverable
 amount.
 
 b) Reversal of impairment losses recognized in prior years is recorded
 when there is an indication that the impairment losses recognized for
 the asset no longer exists or have decreased.
 
 5 Inventories :
 
 a) Inventories are stated at cost or net realizable value, whichever is
 lower. For this purpose cost has been arrived at on the basis of moving
 weighted average. Cost of finished goods include all direct cost, other
 related factory overheads and excise duty.
 
 b) Provision for obsolescence is made wherever considered necessary.
 
 6 Sales:
 
 a) Sales figures are inclusive of excise duty, but are net of sales
 tax, sales returns and rate difference adjustment.
 
 b) Export sales are accounted on the basis of the rate of foreign
 exchange prevailing on dates of bills of lading/ mate receipts.
 
 c) Export benefits on account of entitlement to import duty free
 materials are recognized in the year of export.
 
 7 Foreign Exchange Transaction :
 
 Transactions of foreign currency are recorded at the exchange rate as
 applicable at the date of transaction. Monetary Assets / liabilities
 outstanding at the close of the financial year are stated at the
 contracted and / or appropriate exchange rate at the close of the year
 and the gain / loss is credited / charged to Profit & Loss Account.
 
 8 Employee Benefits :
 
 a) Short term employee benefits are charged off in the year in the
 which the related service is rendered.
 
 b) Post employment employee benefits under defined contribution plans
 are charged off in the year in which the employee has rendered
 services. In respect of Defined Benefit Plans, the amount charged off
 is recognised at the present value of the amounts payable determined
 using actuarial valuation techniques. Actuarial gains and losses in
 respect of post employment and other long term benefits are charged to
 Profit & Loss Account.
 
 9 Provisions, Contingent Liabilities and Contingent Assets :
 
 a) Provisions involving substantial degree of estimation in measurement
 are recognized when there is a present obligation as a result of past
 event and it is probable that there will be an outflow of resources.
 Contingent Liabilities are not recognized but are disclosed in the
 notes. Contingent Assets are neither recognized nor disclosed in the
 Financial Statements.
 
 b) Provisions, Contingent Liabilities and Contingent Assets are
 reviewed at each Balance Sheet date in accordance with the Accounting
 Standard AS-29 on Provisions, Contingent Liabilities And Contingent
 Assets notified under the Companies (Accounting Standard) Rules, 2006.
 
 10 Borrowing Cost :
 
 Borrowing costs, attributable to the acquisition / construction of
 qualifying assets, are capitalized. Other borrowing costs are charged
 to profit and loss account.
 
 11 Taxation :
 
 a) Income tax charge or credit comprises current tax and deferred tax
 charge or credit.
 
 b) Current Income tax is measured at the amount expected to be paid to
 Tax authorities in accordance with the Income Tax Act, 1961.
 
 c) Deferred tax asset or liability on timing difference are recognised
 using current rates and tax laws that have been enacted or
 substantively enacted by the Balance Sheet date. Deferred tax assets
 are recognised to the extent there exists a virtual certainty that
 these assets can be realised in future. Net deferred tax asset is
 recognised based on the principles of prudence. Deferred tax assets and
 liabilities are reviewed at each Balance Sheet date.
 
 12 General :
 
 Accounting policies not specifically referred to are consistent with
 generally accepted accounting practice.