1.  Basis of Accounting:
 
 The financial statements are prepared and presented under the
 historical cost convention on accrual basis of accounting in accordance
 with the Generally Accepted Accounting Principles (GAAP) in India and
 comply in all material aspects with the Accounting Standards (AS)
 notified under the Companies (Accounting Standard) Rules, 2006 (as
 amended), to the extent applicable, other pronouncements of the
 Institute of Chartered Accountants of India and with the relevant
 provisions of the Companies Act, 1956.
 
 2.  Use of estimates:
 
 The preparation of financial statements in conformity with the GAAP
 requires estimates and assumptions to be made that affect the reported
 amounts of assets and liabilities on the date of the financial
 statements, the reported amounts of revenues and expenses during the
 reported period and the disclosures relating to contingent liabilities
 as of the date of the financial statements.  Any revision to accounting
 estimates is recognised prospectively in the current and future
 periods.  Difference between actual results and estimates are
 recognised in the period in which the results are known or materialise.
 
 3.  Fixed Assets:
 
 Fixed assets, whether tangible or intangible, are stated at cost less
 accumulated depreciation / impairment loss (if any), net of Modvat /
 Cenvat (wherever claimed). The cost of fixed assets includes taxes,
 duties, freight and other incidental expenses incurred in relation to
 their acquisition and bringing the assets for their intended use.
 
 Advances paid towards the acquisition of fixed assets outstanding at
 each balance sheet date and the cost of fixed assets not ready for
 their intended use before such date are disclosed under Capital
 Work-in-Progress.
 
 Fixed Assets held for disposal are stated at lower of net book value
 and net realisable value.
 
 4.  Treatment of expenditure during construction period:
 
 Expenditure / Income, during construction period is included under
 Capital-Work-in-Progress and the same is allocated to the respective
 Fixed Assets on the completion of their construction.
 
 5.  Foreign Currency Transactions:
 
 (i) Transactions denominated in foreign currency are recorded at the
 exchange rate prevailing on the date of the transaction. Monetary
 assets and liabilities denominated in foreign currency at the balance
 sheet date are translated at the year-end rates.
 
 (ii) In respect of Forward exchange contracts, premium or discount,
 being the difference between the forward exchange rate and the exchange
 rate at the inception of contract is recognised as expense or income
 over the life of the Contract.
 
 (iii) Exchange difference including premium or discount on forward
 exchange contracts, relating to borrowed funds, liabilities and
 commitments in the foreign currency for acquisition of fixed assets,
 arising till the assets are ready for their intended use, are adjusted
 to cost of fixed assets. Any other exchange difference either on
 settlement or translation is recognised in the Profit and Loss account.
 
 (iv) Investments in equity capital of companies registered outside
 India are carried in the Balance Sheet at the rates at which
 transactions have been executed.
 
 6.  Derivatives:
 
 Financial Derivative Instruments
 
 Derivative instruments are used to hedge risk associated with foreign
 currency fluctuations and interest rates. The derivative contracts are
 closely linked with the underlying transactions and are intended to be
 held to maturity. These are accounted on the date of their settlement
 and realised gain/loss in respect of settled contracts is recognised in
 the Profit and Loss Account.
 
 Commodity Hedging
 
 The realised gain/loss in respect of commodity hedging contracts, the
 pricing period of which has expired or contracts cancelled during the
 year are recognized in the Profit and Loss Account.  However, in
 respect of contracts, the pricing period of which extends beyond the
 Balance Sheet date, suitable provision for likely loss, if any, is made
 in the accounts.
 
 7.  Investments:
 
 Investments are classified into long term investments and current
 investments. Long-term investments are carried at cost after deducting
 provisions made, if any, for diminution in value of investments other
 than temporary, determined separately for each individual investment.
 
 Current investments are carried at lower of cost and fair value,
 determined separately for each individual investment.
 
 8.  Inventories:
 
 Inventories are valued at the lower of weighted average cost and
 estimated net realisable value except waste/scrap which is valued at
 net realisable value.
 
 Cost of finished goods and process stock includes cost of conversion
 and other costs incurred in bringing the inventories to their present
 location and condition.
 
 9.  Depreciation and Amortisation:
 
 Depreciation is charged in the Accounts on the following basis:
 
 (A) Tangible Assets:
 
 (i) Depreciation is provided on the straight-line basis at the rates
 and in the manner prescribed in Schedule XIV to the Companies Act, 1956
 except for some of assets at the rates based on the useful life of the
 assets as determined by the management, which are higher than the rates
 specified in Schedule XIV to the Companies Act, 1956, as stated under:
 
 (a) Company Vehicles other than those provided to the employees at 20%
 per annum.
 
 (b) Roads, Culverts, Walls, Buildings etc. within factory premises at
 3.34% per annum.
 
 (c) Computer and Office Equipments at 25% per annum
 
 (d) Furnitures and Fixtures - 7 years
 
 (e) Mobile Phones - 3 years
 
 (f) Motor Cars given to the employees as per the Company''s Scheme are
 depreciated over the Scheme period.
 
 (ii) Assets acquired up to September 30, 1987, are depreciated at the
 rates prevailing at the time of acquisition.
 
 (iii) The value of leasehold land and mining lease is amortised over
 the period of the lease.
 
 (iv) Assets not owned by the Company are amortised over a period of
 five years or the period specified in the agreement.
 
 (v) Expenditure incurred on Jetty is amortised over the period of the
 relevant agreement such that the cumulative amortisation is not less
 than the cumulative rebate availed by the Company.
 
 (vi) Depreciation on additions is provided on a pro-rata basis from the
 month of installation or acquisition and in case of project from the
 date of commencement of commercial production, while depreciation on
 deductions/disposals is provided on a pro-rata basis upto the month
 preceding the month of deductions/disposals.
 
 (B) Intangible Assets:
 
 Specialised softwares are amortised over a period of 3 years.
 
 10.  Impairment of Assets:
 
 The carrying amounts of assets are reviewed at each balance sheet date
 if there is an indication of impairment based on the internal and
 external factors.
 
 An asset is treated as impaired when the carrying cost of the asset
 exceeds its recoverable amount. An impairment loss, if any, is charged
 to the Profit and Loss Account in the year in which the asset is
 identified as impaired. Reversal of impairment loss recognised in prior
 years is recorded when there is an indication that impairment loss
 recognised for the asset no longer exists or has been decreased.
 
 11.  Employee Benefits:
 
 (i) Short term employee benefits
 
 Short term employee benefits are recognised as an expense on accrual at
 the undiscounted amount in the Profit and Loss Account.
 
 (ii) Defined Contribution Plan
 
 Contributions payable to recognised provident fund and approved
 superannuation scheme, which are defined contribution plans, are
 recognised as expense in the Profit and Loss Account; as they are
 incurred.
 
 Contributions as specified by the law are paid to the provident fund
 set up as irrevocable trust by the holding company. The Company is
 generally liable for annual contribution and any shortfall in the fund
 assets based on the government specified minimum rates of return and
 recognises such contribution and shortfall, if any, as an expense in
 the year incurred.
 
 (iii) Defined Benefit Plan
 
 The obligation in respect of defined benefit plans, which cover
 Gratuity, Pension and Post retirement medical benefits, are provided
 for on the basis of an actuarial valuation, using the projected unit
 credit method, at the end of each financial year. Gratuity is funded
 with an approved fund. Actuarial gains/losses, if any, are recognised
 immediately in the Profit and Loss Account.
 
 Obligation is measured at the present value of estimated future cash
 flows using a discount rate that is based on the prevailing market
 yields of Government of India securities as at the balance sheet date
 for the estimated term of the obligations.
 
 (iv) Other Long Term Benefits
 
 Long-term compensated absences are provided for on the basis of an
 actuarial valuation, using the projected unit credit method, at the end
 of each financial year. Actuarial gains/ losses, if any, are recognised
 immediately in the Profit and Loss Account.
 
 12.  Borrowing Costs:
 
 Borrowing costs that are attributable to the acquisition or
 construction of a qualifying asset are capitalised as part of the cost
 of such asset till such time the asset is ready for its intended use.
 A qualifying asset is an asset that necessarily takes a substantial
 period of time to get ready for its intended use. All other borrowing
 costs are recognised as an expense in the period in which they are
 incurred.
 
 The difference between the face value and the issue price of
 ''Discounted Value Non-Convertible Debentures'', being in the nature of
 interest, is charged to the profit and loss account, on a compound
 interest basis determined with reference to the yield inherent in the
 discount.
 
 13.  Taxation:
 
 Current Tax is measured on the basis of estimated taxable income for
 the current accounting period and tax credits computed in accordance
 with the provisions of the Income Tax Act, 1961.
 
 Deferred Tax resulting from timing differences between book and
 taxable profit for the year is accounted for using the tax rates and
 laws that have been enacted or substantively enacted as on the balance
 sheet date. Deferred tax assets are recognised and carried forward only
 to the extent that there is reasonable certainty, except for carried
 forward losses and unabsorbed depreciation which are recognised based
 on virtual certainty, that the assets will be realised in future.
 
 14.  Revenue Recognition:
 
 (i) Sales Revenue is recognised on transfer of significant risks and
 rewards of ownership of the goods to the buyer. Sales are net of Sales
 Tax, VAT, trade discounts, rebates and returns but includes excise
 duty.
 
 (ii) Income from services is recognised as they are rendered, based on
 agreement/arrangement with the concerned parties.
 
 (iii) Dividend income on investments is accounted for when the right to
 receive the payment is established. Interest income is recognised on
 accrual basis.
 
 (iv) Export Incentives, insurance, railway and other claims, where
 quantum of accruals cannot be ascertained with reasonable certainty,
 are accounted on acceptance basis.
 
 15.  Mines Restoration Expenditure:
 
 The Company provides for the estimated expenditure required to restore
 quarries and mines. The total estimate of restoration expenses is
 apportioned over the estimate of mineral reserves and a provision is
 made based on minerals extracted during the year.
 
 The total estimate of restoration expenses is reviewed periodically, on
 the basis of technical estimates.
 
 16.  Provisions, Contingent Liabilities and Contingent Assets:
 
 Provisions are recognised when there is a present obligation as a
 result of past events and it is probable that an outflow of resources
 will be required to settle the obligation, in respect of which a
 reliable estimate can be made. These are reviewed at each Balance Sheet
 date and adjusted to reflect the current best estimate.
 
 Contingent Liabilities are not recognised but are disclosed and
 Contingent Assets are neither recognised nor disclosed, in the
 financial statements.
 
 17. Employees Share based payments:
 
 The Company follows intrinsic value method for valuation of Employees
 Stock Options. The excess of the market price of shares at the time of
 grant of options, over the exercise price to be paid by the option
 holder is considered as employee compensation expense and is amortised
 in the Profit and Loss account over the period of vesting, adjusting
 for the actual and expected vesting.
 
 18.  Earnings Per Share:
 
 The basic Earnings Per Share (EPS) is computed by dividing the net
 profit after tax for the year attributable to the equity shareholders
 by the weighted average number of equity shares outstanding during the
 year.
 
 For the purpose of calculating diluted earnings per share, net profit
 after tax for the year attributable to the equity shareholders and the
 weighted average number of equity shares outstanding during the year is
 adjusted for the effects of all dilutive potential equity shares.
 
 19.  Government Grants and Subsidies:
 
 (i) Government grants and subsidies are recognised when there is
 reasonable assurance that the Company will comply with the condition
 attached thereto and that the grants will be received.
 
 (ii) Capital Government Grants or Subsidies relating to specific fixed
 assets are deducted from the gross value of the respective fixed assets
 and capital grants for projects are credited to Capital Reserve.
 
 (iii) Revenue Government Grants or Subsidies relating to an expense
 item are recognised as income over the period to match them on a
 systematic basis to the costs or deducted from related expenses.
 
 20. Segment Reporting Policies:
 
 Primary Segment is identified based on the nature of products and
 services, the different risks and returns and the internal business
 reporting system. Secondary segment is identified based on geography in
 which major operating divisions of the Company operate.
 
 21.  Research and development expenditure:
 
 Revenue expenditure on research and development is expensed as
 incurred. Capital expenditure incurred on research and development is
 capitalised as fixed assets and depreciated in accordance with the
 depreciation policy of the Company.
 
 22.  Operating lease:
 
 Leases where significant portion of the risks and rewards of ownership
 are retained by the lessor are classified as operating leases and lease
 rentals thereon are charged to the Profit and Loss Account.