1.  NATURE OF OPERATIONS
 
 Ansal Properties and Infrastructure Ltd. (APIL or the Company''''),
 was incorporated in 1967. The Company''s main business is real estate
 promotion and development in residential and commercial segment.
 
 2.  BASIS OF PREPARATION OF ACCOUNTS
 
 The Financial Statements have been prepared to comply in all material
 respects with the mandatory Accounting Standards notified by the
 Central Government as per the Companies Accounting Standard Rules, 2006
 and the relevant provisions of the Companies Act, 1956. The Financial
 Statements have been prepared under the historical cost convention, on
 the basis of going concern and on an accrual basis except as stated
 otherwise.
 
 3.  USE OF ESTIMATES
 
 The preparation of financial statements in conformity with generally
 accepted accounting principles requires management to make estimates
 and assumptions that affect the reported amounts of assets and
 liabilities and disclosure of contingent assets and liabilities at the
 date of the financial statements and the results of operations during
 the reporting period. Although these estimates are based upon
 management''s best knowledge of current events an actions, actuals
 results could differ from these estimates. Difference between the
 actual result and estimates are recognised in the period in which the
 results are known / materialised.
 
 4.  FIXED ASSETS
 
 Fixed Assets are stated at cost less accumulated depreciation. Some of
 the flats owned by the Company which have been revalued are stated at
 revalued amounts less depreciation.
 
 5.  INVENTORIES
 
 Inventories are valued as under:- 
 
 i) Building Materials, Stores, Spare Parts at weighted average cost 
 
 ii) Shuttering & Scaffolding Materials at depreciated cost
 
 iii) Apartments / Houses / Shops/ Flats at lower of cost or market
 value
 
 iv) Projects in Progress at cost
 
 6.  DEPRECIATION
 
 a) Depreciation on Plant and Machinery relating to Windmill is provided
 on Straight Line Method and in respect of remaining fixed assets, on
 Written Down Value Method at the rates and the manner prescribed in
 Schedule –XIV to the Companies Act, 1956.
 
 b) Cost of Leasehold land is amortised over the period of lease.
 
 c) Assets costing up to Rs.5,000/- are fully depreciated in the year of
 purchase
 
 7.  INVESTMENTS
 
 Current investments are stated at lower of cost and market value. Long
 term investments are stated at cost. Decline in value of long term
 investments is recognized, if considered other than temporary.
 
 8.  REVENUE RECOGNITION
 
 a) The Company follows Percentage of Completion Method of accounting
 for contracts and constructed residential, Institutional and commercial
 properties. As per this method, the revenue is recognized in proportion
 to the actual costs incurred as against the total estimated cost of the
 projects under execution subject to actual cost being 30% or more of
 the total estimated cost.
 
 In case of FSI sale, revenue is recognized to the extent of -
 
 - 50% if the sale consideration received is at least 20 %,
 
 - 100% if the sale consideration received is more than 50 %.
 
 b) Income from know how fee is recognized as per the terms of the
 agreement with the recipient of know how.
 
 c) The estimates relating to saleable area, sale value, estimated costs
 etc., are revised and updated periodically by the management and
 necessary adjustments are made in the current year''s accounts.
 
 d).  Indirect costs (as detailed in Schedule 16) are treated as Period
 Costs and are charged to the Profit & Loss Account in the year in
 which they are incurred.
 
 e).  Surrender of flats by buyers are valued at cost and accounted for
 as surrender of rights under `Cost of Construction'' in the case of
 projects in progress and once sold, proceeds are treated as `Sales''.
 
 f).  For recognizing income and working out related cost of
 construction, in case of developed land, flats / shops/ houses/ farms
 etc., major self contained residential township projects are divided
 into various schemes such as plotted area, constructed houses and
 commercial area, malls etc.
 
 g).  Whereas all income and expenses are accounted for on accrual
 basis, interest on delayed payments by customers against dues and
 holding charges, interest claims for delay in projects and assured
 returns to customers are taken into account on realization or payment
 owing to practical difficulties and uncertainties involved.
 
 h).  Income from Windmill is accounted for on the basis of power
 supplied to the Customer as per the terms of the Power Purchase
 Agreement with the respective party.
 
 i).  The maintenance and other expenses incurred subsequent to
 completion of projects are charged off to the Profit & Loss Account
 under the head Expenditure on Completed Projects.
 
 j) Interest income on fixed deposit with bank is recognised on time
 proportion basis taking into account the amount outstanding and the
 rate applicable.
 
 k) Dividend income from investments is recognised when the Company''s
 right to receive payment is established.
 
 9.  ADVANCES TO SUBSIDIARIES, ASSOCIATES AND OTHERS FOR PURCHASE OF
 LAND.
 
 Advances given to subsidiary and land holding companies for acquiring
 land are initially classified as ''Advances'' for purchase of land under
 Loans & Advances. On obtaining the license for a land, the full cost of
 the land is transferred to cost of land, an item of cost of
 construction, from ''Advance against land''.
 
 10.  RETIREMENT AND OTHER BENEFITS
 
 a) Contribution to the Provident Fund is charged to the revenue each
 year.
 
 b) Provisions for Gratuity and leave encashment are made on the basis
 of actuarial valuation at the year-end in accordance with Accounting
 Standard AS 15 (Revised 2005) on ''Employee Benefits''.
 
 11.  FOREIGN CURRENCY TRANSLATION / CONVERSION
 
 Transactions in foreign currency are recorded at the exchange rate
 prevailing on the date of transactions. Gains / Losses arising due to
 fluctuations in the exchange rates are recognized in the Profit & Loss
 Account in the period in which they arise.
 
 Gains / Losses on foreign exchange rate fluctuations relating to
 monetary items at the year-end are accounted for in the Profit & Loss
 Account.
 
 12.  BORROWING COSTS
 
 Borrowing costs that are attributable to the projects are charged to
 the respective Project on the basis of net cash inflows. Other
 borrowing costs are expensed as period costs.
 
 13.  TAXES ON INCOME
 
 Income tax expense is accounted for in accordance with AS-22,
 Accounting for Taxes on Income, as stated below:
 
 a) Provision for current tax is made based on taxable income for the
 year computed in accordance with provisions of the Income Tax Act,
 1961.
 
 b) Deferred tax is recognized, subject to the consideration of
 prudence, on timing differences, being the difference between taxable
 income and accounting income that originate in one period and are
 capable of reversal in one or more subsequent periods.
 
 c) Deferred tax asset is recognized and carried forward to the extent
 that there is a reasonable certainty of realization. In the case of
 unabsorbed depreciation and carry forward losses deferred tax asset is
 recognized, to the extent there is virtual certainty that sufficient
 future taxable income will be available against which such deferred tax
 assets can be realized.
 
 14.  IMPAIRMENT
 
 At each Balance Sheet date, the management reviews the carrying amounts
 of Fixed Assets to determine whether there is any indication that these
 assets suffered an impairment loss. If any such indication exists, the
 recoverable amount of the asset is estimated in order to determine the
 extent of impairment loss and necessary provisions are made against
 such impairment. Reversal of impairment loss is recognized as income in
 the Profit & Loss Account to the extent of impairment loss previously
 recognized.
 
 15.  LEASE
 
 When Company is the lessee
 
 Leases where the lessor effectively retains substantially all the risks
 and benefits of ownership of the leased item, are classified as
 operating leases. Operating lease payments are recognised as an expense
 in the Profit and Loss account on a straight-line basis over the lease
 term.
 
 When the Company is the lessor
 
 Assets subject to operating leases are included in fixed assets. Lease
 income is recognised in the Profit and Loss Account on a straight-line
 basis over the lease term. Costs including depreciation are recognised
 as an expenses in thew Profit and Loss Account .Initial direct costs
 such as legal costs, brokerage costs, etc. are recognised immediately
 in the Profit and Loss Account.
 
 16.  PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS
 
 Provisions for expenses are recognized for liabilities that can be
 measured by using a substantial degree of estimation, if
 
 a) the Company has a present obligation as a result of past events.
 
 b) a probable outflow of resources is expected to settle the
 obligation, and
 
 c) the amount of the obligation can be reliably estimated.
 
 Contingent liability is disclosed in the case of
 
 a) A present obligation arising from a past event when it is not
 probable that an outflow of resources will be required to settle the
 obligation.
 
 b) A possible obligation, unless the probability of outflow of
 resources is remote.  Contingent assets are neither recognized nor
 disclosed.
 
 17.  CASH AND CASH EQUIVALENTS
 
 Cash and cash equivalents in the cash flow statement comprise cash at
 bank cash / cheques in hand and fixed deposits with banks.