1.  BASIS OF ACCOUNTING
 
 a) The financial statements have been prepared under the historical
 cost conversion in accordance with the generally accepted accounting
 principles and provisions.
 
 b) Accounting policies not specially referred to otherwise are
 consistently followed throughout the period under audit and in
 consonance with the generally accepted accounting principles followed
 by the Institute of Chartered Accountants of India.
 
 2.  USE OF ESTIMATES
 
 The preparation of financial statement in conformity with generally
 accepted accounting policies requires management to make estimates and
 assumptions that affect the reported amounts of assets and liabilities
 and disclosure of contingent liabilities at date of the financial
 statements and the reported accounts of revenues and expenses for the
 years presented. Actual results could differ from these estimates.
 
 3.  FIXED ASSETS AND DEPRECIATION
 
 a) The fixed assets are stated at cost less accumulated depreciation,
 cost includes all related expenses incurred up to the date the Assets
 is put to use.
 
 b) Depreciation on fixed asset is provided on straight line method as
 per rate and manner prescribes in schedule-XIV of the companies Act
 1956. The depreciation has been provided at 100% on the Assets
 purchased during the year the cost of which is less than Rs 5000/- c)
 Fixed assets acquired under hire purchase agreement are recorded at
 their cash values and finance charges thereon related to period are
 charged to revenue account. The vendors have lien on these Assets.
 
 4.  RECOGNITION OF INCOME
 
 The revenue is recognized on the Percentage of Completion Method of
 accounting of projects subject to percentage of confirmation of sales
 relating to each project.
 
 5.  SUNDRY DEBTORS
 
 Represents value of sales less amount received.
 
 6.  VALUATION OF INVENTORIES
 
 a) Work in progress : Work-in-progress comprises direct cost of project
 and valued at cost less cost of sales.
 
 b) Finished stock : Finished stocks consist of unsold stock in trade at
 the end of financial year.
 
 7.  INVESTMENTS
 
 The long term investments are carried at cost. The decline other than
 temporary, will reduced from carrying amount to recognize decline.
 
 8.  EMPLOYEE BENEFIT
 
 a) Provident Fund Plan
 
 The company is yet to remit the employees contribution to provident
 fund to the tune of Rs.12,30,745/- 
 
 b) Defend Gratuity obligation Liability for Gratuity and balance of 
 leave not availed due to employees are provided on the basis of actuarial 
 valuation carried out at the Balance Sheet date by an independent actuary 
 using the Projected Unit Credit (PUC) method.
 
 9.  TAXES ON INCOME
 
 Income tax comprises current tax and deferred tax.  Current tax is the
 amount of tax payable as determined in accordance with the provisions
 of the Income Tax Act 1961. Deferred tax assets and liabilities are
 recognized for the future tax consequences of timing differences,
 subject to the consideration of prudence. Deferred tax asset and
 liabilities are measured using the tax rates applicable to the company
 at the balance sheet date.
 
 10.  DEFERRED TAX
 
 Deferred tax liability is adjusted with the deferred tax asset and the
 closing balance standing at the end of the year is net off deferred tax
 asset created during the year. The details are as follows:-
 
 11.  CONTINGENT LIABILITIES AND CONTINGENT ASSETS
 
 i) Sales tax liability, if any on works contracts carried out by the
 company is considered by management as not material but if any
 liability arises it will be recovered from customers.
 
 ii) During the financial year the company has received a show cause
 notice from the service tax department in which they have asked for
 clarification from the company regarding the differences arises in the
 computation of service tax for the periods as given below. The total
 amount for which the explanation has been asked for is Rs.13,79,844/-.
 The details of the two show cause notice are as follows:- Date of
 Notice Pertaining to period Amount 19/10/2010 April,2009 to Sept.2009
 1379844/- The company has fle a writ petition against the above service
 tax levied by the department and the penalty levied by the service tax
 department to the tune of Rs 70 lakhs vide court case number-6562 /
 2011 before the honorable Madras High Court and the High Court has
 granted a stay until further orders.
 
 The Company has received notice from Income Tax Department for
 reopening the assessment for the assessment year 2004-05. The Company
 has decided to challenge the same in the appropriate forum.
 
 Chennai Metropolitan Development Authority:- The Company has built all
 properties in accordance to plan except minor deviations which are
 within permissible limits.
 
 iii) Contingent assets are neither recognized nor disclosed.
 
 12.  BORROWING COST
 
 Borrowing costs that are directly attributable to the acquisition or
 construction of qualifying asset are considered as part of the cost of
 that asset. Other borrowing costs are recognized as an expense in the
 year in which they are incurred. The Borrowing cost of the projects are
 charged to project accounts in the year in which they are incurred.