a Basis of Acounting:
 
 i. The financial statements are prepared under Historical Cost
 Convention and on accrual basis and are in accordance with the
 requirements of the Companies Act, 1956 of India (the Act).
 
 ii. The Company generally follows mercantile system of accounting and
 recognizes significant items of income and expenditure on accrual
 basis.
 
 b Fixed Assets:
 
 Fixed Assets are stated at historical cost less accumulated
 depreciation. Cost is inclusive of inward freight, duties, taxes, and
 installation expenses;
 
 c Investments:
 
 Investments are stated at cost.
 
 d Depreciation:
 
 (i) Indian Companies
 
 Depreciation has been provided on all the Assets on Straight Line
 Method, at the rates specified under Schedule XIV of the Act.
 
 (ii) Foreign Companies
 
 Depreciation has been provided by the foreign companies on methods and
 at the rates required/permissible by the local laws so as to write off
 the assets over their useful life.
 
 e Transaction in Foreign Currency:
 
 i. Transactions denominated in foreign currencies are normally recorded
 at the exchange rate prevailing at the time of the transaction.
 
 ii. Monetary items denominated in foreign currencies at the year end
 and not covered by forward exchange contracts are translated at the
 year end rates and those covered by forward exchange contracts are
 translated at the rate ruling at the date of transaction as increased
 or decreased by the proportionate difference between the forward rate
 and exchange rate on the date of transaction, such difference having
 been recognized over the life of the contract.
 
 iii. Any income or expenses on account of exchange difference either on
 settlement or on translation is recognized in the profit and loss
 account.
 
 iv. Financial Statement in case of foreign operations of assets and
 liabilities are translated at the rate prevailing at the end of the
 year.
 
 f Expenditure Pending Allocation:
 
 i) All Expenses including construction materials are accounted on
 Mercantile System of Accounts.
 
 ii) Expenses incurred for project if not completed at the end of the
 period are carried forwarded as work in progress.
 
 iii) Amount paid for regularization of construction work to Municipal
 Corporation is considered as expenses.
 
 g Inventories:
 
 i.  Unsold Flats & Convenient Units are valued at cost.
 
 ii. Valuation of construction material is not considered on yeartoyear
 basis.
 
 h.  Borrowing Cost:
 
 Borrowing costs that are attributable to the acquisition or
 continuation of qualifying assets are capitalized as part of the cost
 of such assets. A qualifying asset is one that necessarily takes
 substantial period of time to get ready for intended use. All other
 borrowings cost are charged to revenue.
 
 i.  Sales:
 
 Sales Revenue has been recognized by applying percentage completion
 method with respect to transferring significant risk and rewards of
 ownership to the buyers based upon agreement / allotment entered with
 them.
 
 j.  Retirement benefit:
 
 In compliance with the Accounting Standard 15 Liability in respect of
 leave encashment and gratuity is provided on accrual basis. Company''s
 contribution to statutory welfare funds is charged to Profit and Loss
 Account.
 
 k.  Provision for Current & Deferred Taxation:
 
 (i) Indian Company
 
 Provision for current tax is made after taking into consideration
 benefits admissible under the provisions of the Income Tax Act, 1961.
 Deferred Tax Liability resulting from Timing difference between book
 & taxable profits is accounted for using the tax rates and laws that
 have been enacted or substantially enacted as on the balance sheet
 date. The deferred tax asset is recognized and carried forward only to
 the extent that there is reasonable certainty that the assets will be
 realized in future.
 
 However where there is unabsorbed depreciation or carried forward loss
 under taxation laws, deferred tax assets are recognized only if there
 is virtual certainty of realization of such assets. Deferred tax
 liabilities are reviewed as at each Balance Sheet date
 
 (ii) Foreign Company
 
 Foreign Companies recognize tax liabilities and assets in accordance
 with the applicable local laws.
 
 I.  Impairment of Assets:
 
 If the carrying amount of Fixed Assets exceeds the recoverable amount
 on the reporting date, the carrying amount is reduced to the
 recoverable amount.  The recoverable amount is measured as the higher
 of the net selling price and the value in use determined by the present
 value of estimated future cash flows.
 
 The carrying amounts of the fixed assets are reviewed at each Balance
 Sheet date. If the carrying amount exceeds the recoverable amount on
 the reporting date, the carrying amount is reduced to the recoverable
 amount. The recoverable amount is measured as the higher of the net
 selling price and the value in use determined by the present value of
 estimated future cash flows.
 
 m.  Contingent Liabilities:
 
 Contingencies, which are likely to materialize into liabilities till
 the date of approval of Accounts by the Board of Directors and having
 material effect, are being provided for. Other contingencies are shown
 as Contingent Liabilities by way of Notes to Accounts.