1. SIGNIFICANT ACCOUNTING POLICIES :

a) Accounting Convention

The Financial Statement are brpared under the historical cost convention on the accrual basis of accounting and in accordance with Accounting principles generally accepted in India and comply with the accounting standards notified by the central Government of India and relevant provisions of the Companies Act, 2013.

All assets & liabilites have been classified as current or non-current as per the Company's normal operating cycle and other criteria set out in the Schedule III of the Companies Act, 2013.

b) Use of Estimates

The brparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of financial statements and reported amount of revenue and expenses during the reporting period. Difference between actual results and estimates are recognised in the period in which the results are known/ materialised.

Current and Non-current classification

All assets and liabilities are classified into current and non-current

Assets

An asset is classified as current when it satisfies any of the following criteria :

a) It is expected to be realised in, or is intended for sale or consumption in, the company's normal operating cycle;

b) It is held primarily for the purpose of being traded;

c) It is expected to be realised within 12 months after the reporting date; or

d) It is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least 12 months after the reporting date.

Current assets include the current portion of non-current financial assets.

All other assets are classified as non-current.

Liabilities

A liability is classified as current when it satisfies any of the following criteria;

a) It is expected to be settled in the company's normal operating cycle;

b) It is held primarily for the purpose of being traded;

c) It is due to be settled within 12 months after the reporting date; or

d) The company does not have an unconditional right to defer settlement of liability for at least 12 months after the reporting date.

Terms of a liability that could, at the option of the counter party, result in its settlement by issue of equity instruments do not affects its classification.

Current liability include current portion of non-current financial liabilities. All other liabilities are classified as non-current.

Operating cycle

Operating cycle is the time between the acquisition of assets for processing and their realisation in cash or cash equivalents.

c) Fixed Assets

Fixed Assets are stated at cost. Cost includes cost of acquisition, non-refundable levies, directly attributable cost of bringing the assets to the working condition for intended use, expenditure during construction period and interest up to the date the assets is put to use. (And also refer note g).

d) Debrciation

Debrciation on Fixed Assets is charged on Straight Line Method as per Schedule II of the companies Act, 2013, except in case of assets added or disposed off it is charged on prorata basis with reference to the date of addition/deletion.

Intangible assets are amortized on straight line basis over the estimated useful life of the assets. Consequent to the applicability of the Companies Act, 2013, with effect from 1st April, 2014, debrciation for the year ended 31st March, 2015, debited to the statement of Profit & Loss is lesser by Rs. 51.04 lacs.

e) Borrowing cost

Borrowing cost that are attributable to the acquisition or construction of qualifying assets is capitalised as part of the cost of such assets. All other borrowing costs are charged to revenue.

f) Amortisation :

Leasehold quarries and housing tenaments acquired under lease cum sale agreement shall be amortised after execution of Sale Deeds. Expenditure incurred on acquisition and development of leasehold quarries are amortised over the unexpired period of their lease after these become operational. The company has purchased a Time Sharing Holiday Resort from Club Mahindra Holidays. The same is effective from April 2003 for a period of 25 years and will be amortised equally over a period of 25 years. Capital issue expenses are amortised over a period of 5 years.

g) Intangible Assets :

Intangible assets comprises of application software stated at its acquisition cost less accumulated debrciation.

h) Impairment of Assets :

In accordance with Accounting Standard 28 AS ( 28) on 'Impairment of Assets' where there is an indication of impairment of the Company's assets, the carrying amount of the company's assets are reviewed at each balance sheet date to determine whether there is any impairment. The recoverable amount of the assets (or where applicable that of the cash generating unit to which the asset belongs) is estimated at higher of its net selling price and its value in use. Value in use is the brsent value of estimated future cash flows expected to arise from the continuing use of the assets and from its disposal at the end of its useful life. An Impairment loss is charged to the Profit & Loss Account in the year in which the carrying amount of the asset or a cash generating unit exceeds its recoverable amount .The Impairment loss recognised in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

i) Investment :

Investment are valued at acquisition cost.

j) Inventories :

i) Raw materials is valued at actual cost or net realisable value whichever is lower. Stores and spares, fuel & packaging materials are valued at weighted average cost or net realisable value whichever is lower.

ii) Work In Progress and Finished Products are valued at estimated cost or net realisable value whichever is lower.

iii) Scraps & Rejects are valued at estimated realisable value.

Finished goods and WIP include cost of conversion and other costs incurred in bringing the inventories to the brsent location and condition.

Estimated realisable value is calculated on the basis of current selling price less the normal selling expenses incurred in making the sale.

k) Foreign Currency Transaction :

The transaction in foreign currencies on revenue account are stated at the rates of exchange brvailing on the date of transaction. Outstanding Foreign currency assets / liabilities are not covered by forward contracts and are translated at the exchange rate brvailing as on Balance Sheet date. Gains or losses on these assets & liabilities relating to the acquisition of fixed assets are adjusted to the cost of such fixed assets and those relating to other accounts are recognised in the Profit & Loss Account

l) Revenue Recognition :

(i) Revenue /Income and Cost/Expenditure are generally accounted for on accrual basis as they are earned or incurred, except, in case of significant uncertainties.

(ii) Subsidy receivable against an expense is deducted from such expense.

(iii) Domestic Sales is exclusive of excise duty.

(iv) Revenue from services is recognised as and when services are rendered and related costs are incurred.

(v) Interest income is recognised on a time proportion basis taking into account the amount outstanding and the interest rate applicable.

m) Retirement Benefits :

Defined contribution scheme : Company's contribution towards Provident Fund and Superannuation Fund paid/payable during the year are charged to Profit & Loss Account.

Defined Benefit Plan :The company has a defined benefit gratuity plan covering all its employees. Gratuity is covered under a scheme of LIC and contribution in respect of such scheme are recognized in Profit & Loss Account. The liability at the Balance Sheet date is provided for based on actuarial valuation carried out by Life Insurance Corporation of India in accordance with AS 15 of employee benefits issued by the Institute of Chartered Accountants of India.

Disclosure in respect of DCS and DBS as required under AS 15 have been given in Note 5 below to the extent practical and the availability of information.

n) Leases :

Lease rentals under an operating lease, are recognised as an expense in the statement of profit and loss on a straight line basis over the lease term.

o) Expenditure on Expansion :

Expenditure directly related to construction activity is capitalised. Indirect expenditure (including borrowing cost) directly related to construction or incidental thereto is allocated amongst the assets created on pro-rata basis.

p) Governments Grants :

Government grants in the nature of State Investment subsidy are accounted for on cash basis and treated as capital reserve.

q) Taxation :

Income - tax expense comprises Current tax and Deferred tax charge or credit. Provision for current tax is made on the assessable income at the tax rate applicable to the relevant assessment year. The Deferred tax Asset and Deferred tax Liability is calculated by applying tax rate and tax laws that have been enacted or substantively enacted by the Balance Sheet date. Deferred tax Assets arising mainly on account of brought forward losses and unabsored debrciation under tax laws, are recognised, only if there is a virtual certainty of its realisation, supported by convincing evidence. Deferred tax Assets on account of other timing differences are recognised, only to the extent there is a reasonable certainty of its realisation. At each Balance Sheet date, the carrying amount of Deferred Tax Assets are reviewed to reassure realisation.

r) Earning per share :

Basic and diluted earning per share are computed by dividing the net profit after tax attributable to equity shareholders for the year, with the weighted number of equty shares outstanding during the year.

s) Contingent Liabilities and Provisions :

Contingent liabilities are not provided for and are generally disclosed by way of notes to accounts. Provisions are recognized when the Company has legal/constructive obligation and on management discretion, as a result of a past event for which it is probable that a cash outflow may be required and a reliable estimate can be made for the amount of obligation.

As per our Report of even date attached

For Rungta & Rungta

Chartered Accountants (Registration No.0305134E)

On behalf of the Board

Lata Bagri

Company Secretary

Kamal Kumar Agarwal

Managing Director

S. K. Roongtaa

(Partner)

Membership No 15234

Ashok Kumar Modi

Chief Financial Officer

Ashoke Agarwal

Jt. Managing Director

25, R. N. Mukherjee Road, Kolkata, the 30th Day of May 2015