1.  a.  Rehabilitation Scheme sanctioned by Honble Appellate Authority
 for Industrial and Financial Reconstruction
 
 (AAIFR) vide its order dated 21.11.2002 is under implementation and the
 proceedings under the provisions of Sick Industrial Companies (Special
 Provisions) Act, 1985 are pending.
 
 b. The Government of Gujarat filed the Letters Patent Appeal before the
 Honble High Court of Gujarat and have claimed an amount of Rs. 346.02
 crores in respect of interest and penal interest on dues to them. The
 decision is still pending and no interim relief has been granted by the
 Honble High Court. In view of this,-no provision has been made in
 respect thereof.
 
 2.  Estimated amount of contracts remaining to be executed on capital
 account and not provided for (net of advances) Rs. 148.40 lacs
 (Previous year Rs. 87.30 lacs).
 
 3.  Contingent liabilities not provided for in respect of:
 
                                    For the             For Eighteen
                                    Year ended          months ended
                                    March 31,2011       March 31, 2010
                                    Rs. In lacs         Rs. In lacs
 
 
 i.  Matters under disputes
 / appeals :
   Excise                           38.00               38.00
 
   Customs                          37.09               37.09
 
   Service Tax                      1298.74             993.92
 
   Sales tax
 
    - Rajasthan Sales tax           24.73               24.73
 
    - Gujarat Sales tax             138.55              138.55
 
    - Gujarat VAT                   224.59              -
 
   Income Tax-TDS                   1.30                -
 
 ii.  Claims against the
 company not acknowledged
 as debt                            1341.38             1,046.06
 
 
 4.  Local Gram Panchayat in earlier years had raised demands for octroi
 duty aggregating to Rs. 51.90 lacs. The Company has deposited an amount
 of Rs. 43.85 lacs with civil court, Veraval as per the order of the
 Honble High Court. No provision has been made for this demand for
 octroi duty as the Company has preferred appeals.
 
 5.  a.  Sundry creditors in Schedule 7 to the Accounts include Rs. NIL
 due to creditors registered with the Micro,
 
 Small and Medium Enterprises Development Act, 2006 (MSME).
 
 b.  No interest is paid / payable during the year to Micro, Small and
 Medium Enterprises.
 
 c.  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.
 
 6.  In view of the losses and unabsorbed depreciation under the Income
 tax Act, 1961, no provision for Income-tax is made.
 
 7.  Remuneration paid / payable to whole time directors :
 
 b.  Provision of incremental gratuity liability for the current year in
 respect of the above directors has not been considered above, since the
 provision is based on an actuarial valuation for the Company as a
 whole.
 
 10.  Related Parties Disclosure:
 
 A.  Promoter companies together with its subsidiaries and associate
 companies holding more than 20% of Equity Capital :
 
 1 Ria Holdings Ltd.*
 
 2 Pranay Holdings Ltd.*
 
 3 Reeti Investments Ltd.*
 
 4 Prachit Holdings Ltd.*
 
 5 Sumaraj Holding Pvt. Ltd.*
 
 6 Villa Trading Company Pvt. Ltd.
 
 7 Sunnidhi Trading Pvt. Ltd.
 
 8 Shree Anandeya Investment Pvt. Ltd.
 
 9 Sameta Export Pvt. Ltd.
 
 10 Pallor Trading Company Pvt. Ltd.
 
 11 The Mehta International Ltd.
 
 12 The Arj Investments Limited
 
 13 Euro India Investments Ltd.
 
 14 Exchange Management Ltd.
 
 15 Hopgood Investments Ltd.
 
 16 Treasurers Trading Limited
 
 17 Gujarat Industrial Investment Corp. Ltd.
 
 18 Saurashtra Cement Limited (holding company of Sr. No. 1 to 4)
 
 19 Industrial Construction Limited (holding company of Sr. No. 9)
 
 20 Sampson Limited (holding company of Sr. No. 6)
 
 21 Clarence Investments Limited ( subsidiary of Sr. No. 11)
 
 22 Glenn Investments Limited (subsidiary of Sr. No. 11)
 
 23 Aber Investment Limited (subsidiary of Sr. No. 11)
 
 24 Monza Limited (subsidiary of Sr. No. 11)
 
 *41,43,650 shares held as security by a bank for financial assistance
 granted.
 
 B.  Name of Key Management Personnel :
 
 1 Mr. Jay Mehta        Executive Vice Chairman
 
 2 Mr. M. S. Gilotra    Managing Director
 
 3 Mr. R. K. Poddar     Dy. Managing Director (Upto 13th September, 2010)
 
 D.  i.  Name of the transacting related party : Saurashtra Cement
 Limited
 
 ii.  Description of the relationship between the parties : Common Key
 Management Personnel
 
 11. In accordance with Accounting Standard 22 Accounting for Taxes on
 Income notified under the Companies Accounting Standard Rules, 2006,
 the company has reviewed its Deferred Tax Assets (DTA) recognized upto
 31st March, 2011 and has also, in terms of paragraph 15 to 18 of AS 22,
 examined the issue of recognizing DTA arising during the year on
 account of unabsorbed depreciation and carry forward losses. The
 financial projections of the company have been submitted to Honble
 AAIFR as a part of Rehabilitation Scheme. Having regard to this and
 also considering the present market scenario of the Companys products,
 the Management expects that the Company will have sufficient taxable
 income as envisaged in the Financial projections against which
 aggregate DTA recognized as on balance sheet date would be realised.
 
 13.  The Company has only one business segment Cement / Clinker as
 primary segment.
 
 14.  a.  The aggregate sum of Rs. 247.23 lacs was spent towards a
 project reflected under Capital Work-in-progress
 
 (CWIP) inter alia, included therein cost of consultancy relating to
 project viability and mobilisation expenses for civil work to be
 carried out and pre-operative expenses. However, later on due to non-
 disbursal of loans by lenders and insufficient internal accrual, the
 project could not be pursued. Therefore, an impairment loss of Rs.
 247.23 lacs as required under Accounting Standard 28 on Impairment of
 Assets is recognised in the Profit and Loss Account and reflected as a
 seperate line item. Considering the present situation there is no value
 in use for the project.
 
 b.  In the earlier years certain modification in Preheater plant was
 abandoned and consequently an impairment loss of Rs. 418.47 lacs was
 recognised. During the year the same project was revived and completed
 and therefore, impairment loss of Rs. 418.47 lacs has been reversed and
 credited to Profit and Loss Account.
 
 c.  The net effect of Rs. 171.24 lacs of impairment gain on reversal
 and provision is included in Profit and Loss Account.
 
 15.  Current years figures have been rearranged, regrouped and / or
 reclassified, wherever necessary. The figures of the current year are
 for the twelve months, and hence are not comparable with those of
 previous period, which is for eighteen months.