We have the pleasure in presenting the 35th Annual Report of the
 Company with audited statements of accounts for the year ended 31st
 March, 2011. The summarised Financial Results are given below:
 
 1.  FINANCIAL RESULTS
 
                                                    (Rs. in Lacs)
 
                               Current Year ended Previous Year ended 
                                 31st March, 2011    31st March, 2010
 
 Gross Sales                             56470.66            68183.82
 
 Less: Excise Duty                        7313.63             6814.74
 
 Net Sales                               49157.03            61369.08
 
 Operating Profit before Interest 
 and Financial Charges, Depreciation
 and Tax                                  7107.79            21145.35
 
 Less: Interest and Financial Charges      219.46              196.16
 
 Gross Profit before Depreciation 
 and Tax                                  6888.33            20949.19
 
 Less: Depreciation (net of 
 transfer from Revaluation Reserve)       2751.43             2535.96
 
 Profit before Tax                        4136.90            18413.23 
 
 Less: Provision for Tax:
 
 (a) Income Tax /MAT for current 
 year (Net)                                 25.00             6700.20
 
 (b) Income Tax for earlier years          455.76                   -
 
 (c) Deferred Tax Credit                 (168.00)            (168.00) 
 
 Net Profit After Tax                     3824.14            11881.03 
 
 Provision for Dividend for 2008-09 
 written back                                   -               73.67
 
 Corporate Dividend Tax provided 
 in 2008-09 written back                        -               12.52
 
 Profit brought forward from 
 previous year                           29555.00            20655.42 
 
 Profit available for appropriation      33379.14            32622.64 
 
 APPROPRIATIONS
 
 (a) Transfer to general Reserve           400.00             1200.00
 
 (b) Proposed Dividend on Equity Shares   1601.63             1601.63
 
 (c) Corporate Dividend Tax                259.82              266.01
 
 (d) Balance carried forward 
 to next year                            31117.69            29555.00
 
 TOTAL                                   33379.14            32622.64
 
 2.  DIVIDEND
 
 We recommend a dividend of Rs.6.00 per equity share of Rs.10/- each for
 the year ended 31st March, 2011. Total dividend outgo will be
 Rs.1861.45 Lacs including corporate dividend tax.
 
 3.  DEFERRED TAX
 
 In terms of the order dated 30th November, 2007 of the Honble High
 Court of Rajasthan, deferred tax liability of Rs.1164.00 Lacs for the
 year has been adjusted from the Securities Premium Account. Deferred
 tax assets of Rs.168 lacs of the current year has been credited to the
 Profit and Loss Account
 
 4.  OVERALL PERFORMANCE
 
 Performance of the Company has been comprehensively covered in the
 Management Discussions and Analysis Report which forms part of
 Directors Report.
 
 5.  WIND MILLS
 
 All the six wind mills of 1.25 MW capacity each installed at Jaisalmer,
 were commissioned in June, 2010 and with the commissioning of these
 wind mills, total capacity of wind mill power is 13.65 MW. Necessary
 steps have been taken to avail CDM benefit.
 
 6.  CAPTIVE THERMAL POWER PLANT (CPP)
 
 The second Captive Thermal Power Plant of of 17.5 MW capacity was
 commissioned in February, 2011. Now the combined capacity of both the
 CPPs is 35 MW. As the Company has now surplus power, it will try to
 sell the surplus power when profitable rate is available.
 
 7.  NEW PROJECTS AND CAPACITY EXPANSION
 
 The Board on re-examination of the project for expansion of plant
 capacity by 1.5 million MT p.a. at the existing site, considered it
 prudent to defer the project for the time being.  Instead, the company
 has decided to move forward to set up a clinker grinding unit in the
 District of Aligarh, U.P. with an installed capacity of upto 1.25
 million M.T. p.a. and barring any unforeseen circumstances, the unit is
 likely to be commissioned by the last Quarter of the financial year
 2012-13.
 
 The Company is also taking steps for upgradation of its existing plants
 for increasing clinker production by 5 Lac MT p.a.
 
 The total capital expenditure estimated for both the plants is Rs.300
 Cr appx which will be met partly by internal cash accruals and partly
 by loan from the Banks.
 
 8.  FINANCES
 
 The Company continued to be debt free as on 31st March, 2011, as there
 was no secured loan outstanding.
 
 9.  CREDIT RATINGS
 
 Your Directors are pleased to inform that Credit Analysis & Research
 Ltd (CARE) has renewed and assigned to the Company CARE AA- rating
 for long term and medium term facilities. CARE AA rating is
 considered to offer high safety for timely servicing of debit
 obligations. Such facility carries very low credit risk. CARE assigns
 + or - signs to be shown after the assigned rating (wherever
 necessary) to indicate the relative position within the band covered by
 the rating symbol.
 
 Further, CARE has re-affirmed PR1+ (PR One Plus) rating assigned to the
 short term facilities. This is the highest rating for short term
 facilities. PR1+ rating indicates strong capacity for timely payment of
 short term debt obligations and carries lowest credit risk.
 
 10. INSURANCE
 
 Adequate insurance cover has been taken for the properties of the
 Company including buildings, plant and machinery and stocks.
 
 11. DIRECTORS
 
 Shri T.S.Vishwanath has resigned from the Directorship of the Company
 effective from 21st day of April, 2011.
 
 The Board expressed its sincere appreciation and thanks for the
 efficient and matured advices of Shri T.S.Vishwanath given to the Board
 during the tenure of his office as Director of the Company.
 
 Subject to necessary approval of the shareholders, the Board appointed
 Shri A.V.Jalan and Smt.Vidula Jalan as Whole-time Directors (designated
 as Executive Directors) of the Company w.e.f. 1st April, 2011.
 Extra-ordinary General Meeting (EOGM) of the shareholders has been
 convened on 29th April, 2011 at the Registered Office of the Company.
 
 The current tenure of appointment of Shri K.C.Jain, Managing
 
 Director, expires on 30th April, 2011 and your Directors have
 considered his re-appointment for further period of 3 years w.e.f. 1st
 May, 2011 on the terms and conditions set out in the Notice of the
 Shareholders at their ensuing Annual General Meeting.
 
 In accordance with Article 99 of the Articles of Association of the
 Company Shri O.P.Gupta and Shri K.K.Mudgil, Directors of the Company,
 retire by rotation at the forthcoming Annual General Meeting of the
 members of Company and being eligible, offer themselves for
 re-appointment.
 
 12. MERGER OF MANGALAM TIMBER PRODUCTS LTD (MTPL)
 
 The merger of Mangalam Timber Products Ltd (MTPL) with the Company
 through the judicial process is in progress.  The Honble High Court of
 Rajasthan, Jaipur has directed convening of the meeting of unsecured
 creditors and shareholders of the Company which is scheduled to be held
 on Saturday, the 21st May, 2011 at the Registered office of the
 Company. The merger on approval by the Honble High Court of Rajasthan,
 Jaipur and Honble High Court of Orissa, Cuttack, will be effective
 from 1st April, 2010.
 
 13. AUDITORS REPORT
 
 Auditors Report to the Shareholders does not contain any
 qualification, reservation or adverse remark.
 
 14. STATUTORY AUDITORS
 
 M/s. Jain Pramod Jain & Co., Chartered Accountants, (Firm Registration
 No. 016746N), auditors of the Company will retire at the ensuing Annual
 General Meeting and are eligible for re-appointment and they have
 confirmed that their re-appointment, if made, shall be within the
 limits of Section 224 (1B) of the Companies Act, 1956. The Board
 recommends their re-appointment.
 
 15. COST AUDIT
 
 Pursuant to the directives of the Central Government under provisions
 of Section 233-B of the Companies Act, 1956, a Cost Auditor has been
 appointed to audit Cost Accounts of your Company for the year ended
 31st March, 2011.
 
 16. DIRECTORS RESPONSIBILITY STATEMENT
 
 In terms of provisions of Section 217(2AA) of the Companies Act, 1956,
 your Directors declare that :
 
 (i) in preparation of Annual Accounts, applicable accounting standards
 have been followed and that no material departure has been made from
 the same;
 
 (ii) they have selected such accounting policies and applied them
 consistently and made judgments and estimates that are reasonable and
 prudent so as to give a true and fair view of the state of affairs of
 the company for Financial Year ended 31st March, 2011 and of the profit
 of the company for that year;
 
 (iii) they have taken proper and sufficient care for maintenance of
 adequate accounting records in accordance with the provisions of the
 Companies Act, 1956 for safeguarding the assets of the Company and for
 preventing and detecting fraud and other irregularities.
 
 (iv) they have prepared the annual accounts on a going concern basis.
 
 17. PARTICULARS OF EMPLOYEES
 
 There is no employee during the year under review in respect of whom
 the particulars as required to be disclosed with reference to the
 Companies (Particulars of Employees) Rules, 1975 as amended.
 
 18. PARTICULARS OF ENERGY CONSERVATION ETC.
 
 Particulars as required to be disclosed as per Companies (Disclosure of
 Particulars in the Report of Board of Directors) Rules, 1988 are set
 out in the statement attached hereto and form part of this Report.
 
 19. CORPORATE GOVERNANCE
 
 A separate report on Corporate Governance is enclosed as part of this
 Annual Report. Certificate from the Auditors of the Company regarding
 compliance with the Corporate Governance norms stipulated in Clause 49
 of the Listing Agreement is annexed to the Report on Corporate
 Governance.
 
 20. PUBLIC DEPOSITS
 
 The Company has neither invited nor accepted any deposits from the
 public within the meaning of Section 58(A) of the Companies Act, 1956
 during the year under review. As such no amount of principal or
 interest was outstanding on the date of the Balance Sheet.
 
 21. CASH FLOW ANALYSIS
 
 In conformity with the provisions of Clause 32 of the Listing
 Agreement(s), cash flow statement for the financial year ended 31st
 March, 2011 is annexed hereto.
 
 22. AWARDS
 
 Your Directors are pleased to inform that the Company has received the
 following awards during the year :
 
 (a) During the First Mines Safety Week, 2010 of Hadoti Division,
 Gwalior Region celebrated under the aegis of Directorate General of
 Mines Safety, Govt of India, Dhanbad.
 
 1.  For Overall performance 
 1st prize.
 
 2.  Opencast working, places, plans and supervision 
 1st prize
 
 3.  Explosives (Storage, Transport and Use) 
 1st prize.
 
 4.  Transport roads and dust suppression 
 1st prize.
 
 5.  Welfare Amenities and Protective Equipment, 
 1st prize.
 
 6.  Publicity propaganda and House Keeping.  
 1st prize.
 
 7.  Electrical installation and Mines Lighting.  
 1st prize.
 
 8.  Heavy earth moving machinery and maintenance
  2nd prize.
 
 9.  Vocational training 
 2nd prize.
 
 10. In different trade tests
 1st prize 29 and 2nd prize 3.
 
 (b) During 21st Mines Environment and Mineral Conservation Week 2010-11
 celebrated under the aegis of Indian Bureau of Mines, Ajmer.
 
 1.  For overall performance
 
 1st and 2nd prize in cement Industry of Rajasthan.
 
 2.  Reclamation and Rehabilitation of land 
 1st prize.
 
 3.  For Environmental Protection and Mineral- Conservation
 1st prize.
 
 4.  Afforestation and plantation 
 2nd prize.
 
 5.  Water pollution control 
 3rd prize.
 
 6.  Poster competition 
 3rd prize.
 
 23. ACKNOWLEDGEMENTS
 
 Your Directors place on record, their deep appreciation of the devoted
 services rendered by the employees of the Company who have contributed
 towards an excellent performance of the Company. Their grateful thanks
 are due to the State Government of Rajasthan, investors, Bankers and
 the District level authorities for their support extended to the
 Company from time to time. Shareholders appreciation of the
 Managements efforts expressed at the General Meetings of the Company
 are a great fillip to strive for better performance.
 
                                                   Yours faithfully,
 
                                               O. P. Gupta, Chairman
 
                                              K. K. Mudgil, Director
 
                                        K.C. Jain, Managing Director
 
 New Delhi
 
 The 27th day of April, 2011