1.1 Basis of Accounting :
 
 The financial statements are prepared as under :
 
 (a) on the historical cost convention,
 
 (b) on a going concern basis,
 
 (c) in accordance with the generally accepted accounting principles,
 
 (d) on an accrual system of accounting,
 
 (e) in accordance with the Accounting Standards referred to in Section
 211 (3C) of the Companies Act, 1956 which have been prescribed by the
 Companies (Accounting Standards) Rules, 2006,
 
 1.2 Use of Estimates:
 
 The preparation of the financial statements in conformity with the
 generally accepted accounting principles requires management to make
 estimates and assumptions that affect the reported amounts of revenues
 and expenses during the reporting year, the reported amounts of assets
 and liabilities and the disclosures of contingent liabilities as on the
 date of the financial statements. Examples of such estimates include
 useful life of Fixed Assets, provision for doubtful debts/ advances,
 deferred tax, etc. Actual results could differ from those estimates.
 Such difference is recognised in the year/s in which the results are
 known / materialised.
 
 1.3 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.
 
 (a) Claim against Railways for shortages / damages for cement in
 transit
 
 (b) Insurance Claims
 
 (c) Scrap Sales
 
 (d) Octroi Refund Claims
 
 1.4 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.
 
 1.5 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 Company''s fixed assets. If any indication exists, an asset''s
 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.
 
 1.6 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.
 
 1.7 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 prevailling 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.
 
 1.8 Foreign Currency Transactions :
 
 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
 Statement of Profit & Loss.
 
 1.9 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
 Statement of Profit & Loss.
 
 1.10 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 Standards) Rules,
 2006.
 
 1.11 Borrowing Cost :
 
 Borrowing costs, attributable to the acquisition / construction of
 qualifying assets, are capitalized. Other borrowing costs are charged
 to Statement of profit and loss.
 
 1.12 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.
 
 1.13 General :
 
 Accounting policies not specifically referred to are consistent with
 generally accepted accounting practice.
 
 (e) Rights, preferences and restrictions :
 
 (i) The Company has only one class of equity shares referred to as
 Equity shares having a par value of Rs. 10.  Each holder of equity 
 share is entitled to one vote per share.
 
 (ii) Dividends, if any, is declared and paid in Indian Rupees. The
 dividend, if any, proposed by the Board of Directors is subject to the
 approval of the shareholders in the ensuing Annual General Meeting.
 
 (iii) In the event of liquidation of the company, the holders of equity
 shares will be entitled to receive any of the remaining assests of the
 company, after distribution of all preferential amounts. However, no
 such preferential amounts exist currently. The distribution will be in
 proportion to the number of equity shares held by the shareholders.
 
 (i) Trade payables include Rs NIL (Previous year Rs NIL) due to creditors
 registered with the Micro, Small and Medium Enterprises Development
 Act, 2006 (MSME).
 
 (ii) No interest is paid / payable during the year to Micro, Small and
 Medium Enterprises.
 
 (iii) The above information has been determined to the extent such
 parties could be identified on the basis of information available with
 the Company regarding the status of suppliers under the MSME.
 
 (i) Term loan of Rs 11.59 lacs from a Financial Institution shown under
 Current maturities of long-term debts is secured by first mortgage on
 all movable and immovable assets of the Company, both present and
 future. The balance is under reconciliation and payable immediately
 after reconciliation.