1. SIGNIFICANT ACCOUNTING POLICIES:
 
 A. Basis of Preparation of Financial Statements.
 
 1. The financial Statements have been prepared under the historical
 cost convention. In accordance with the generally accepted accounting
 principles and the provisions of the Companies Act, 1956 as adopted
 consistently by the Company.
 
 2. The presentation of financial statements in conformity with
 generally accepted accounting principles require the management to make
 estimates and assumptions that affects the amounts reported in the
 financial statements and accompanying notes.. Although these estimates
 are based on management's best knowledge of current events and actions,
 the company may undertake in future, actual results ultimately may
 differ from the estimates.
 
 B. Fixed Assets.
 
 Fixed Assets have been valued at Historical cost. The cost includes
 expenses relatable to the cost of acquisition and prorata
 capitalization of revenue expenditure attributable in bringing the
 assets to working condition, suitable for its intended use.
 
 C. Depreciation.
 
 The Company provided depreciation on W.D.V. method at the rates and in
 the manner prescribed in Schedule XIV of the Companies Act, 1956.
 
 D. Long Term Investments.
 
 No investments are made by the Company.
 
 E. Inventory.
 
 Raw materials, Rough blocks are valued at cost or market value
 whichever/ Lower Finished Goods have valued at cost.  Export rejects
 have been sold in local market at prices lower compared to production
 costs and such local sales has resulted in loss which has not been
 ascertained due to non-segregation of variety-wise rejects and sale.
 The Company has obtained requisite permission from concerned
 authorities to sell the said goods in local market.
 
 DESCRIPTION             QUANTITY           SALE VALUE
 
 Various Colours of                             Rs.
 Various sized slabs     6486.213 Sqmts.    Rs. 4325608/-
 
 F. Revenue Recognition.
 
 Revenue from sale of Finished Goods, i.e., Slabs and tiles etc., Is
 based on the material supplied and billed to the Consumer as per the
 terms agreed mutually.
 
 G. Foreign Exchange Transactions.
 
 Export sales denominated in Foreign Currencies are recorded at the bill
 discounted rates for bills realized subsequently and pending
 realisation.
 
 H. Expenditure.
 
 Expenditure accruing for the year ascertainable accurately on a cut off
 date is recognized and provided in the accounts.
 
 I. Retirement Benefit's to Employees.
 
 The Company's contribution to provident fund is charged to profit and
 loss account and the company has not made any provision towards future
 liability under gratuity payable to employees and also leave encashment
 due to employees.
 
 J. Contingent Liabilities.
 
 Contingencies, which can be reasonably ascertained, are provided for,
 if in the company's opinion there is probability that the future
 outcome may be materially determined. Bonds have been executed in
 favour of Deputy Commissioner of Customs for Rs. 2.00 Crores.
 
 K. Deferred Income Tax.
 
 Being 100% E.O.U there is no tax liability and hence provision towards
 deferred taxes are not made.