SYSTEM OF ACCOUNTING :
 
 The company adopts accrual basis of accounting in the preparation of
 accounts.
 
 FIXED ASSETS AND DEPRECIATION :
 
 (a) Fixed assets are valued at cost and depreciation is provided on
 straight line basis in accordance with the provisions of Schedule XIV
 to the Companies Act, 1956.
 
 (b) Capital work-in-Progress is valued at cost.
 
 INVENTORIES :
 
 Inventories are valued as follows:
 
 Construction Material: At Lower of cost and net realizable value.
 However, materials and other items are not written down below cost if
 the constructed units in which they are used are expected to be sold at
 or above cost.  Cost is determined on FIFO basis.
 
 Leasehold and Freehold Land: At Lower of cost and net realizable value.
 
 Unsold Completed Construction and Work in Progress: Cost includes
 direct materials, labour and construction overheads.
 
 REAL ESTATE PROJECTS
 
 (a) Revenue in respect of the projects undertaken before 31st March,
 2006 and the projects which have not reached the level of completion as
 considered appropriate by the management within 31st March, 2011, as
 discussed in (b) below, is accounted for (i) on delivery of absolute
 physical possession of the respective units on completion, or (ii) on
 deemed possession of the respective units on completion or (iii) on
 physical possession for fitout, as considered appropriate by the
 management based on circumstantial status of the project.
 
 (b) Revenue in respect of projects undertaken on or after 1st April,
 2006 which have reached the level of construction as considered
 appropriate by the management within 31st March, 2011 is recognised on
 the Percentage of Completion Method (POC) of accounting and
 represents value of units contracted to be sold to the extent of actual
 work done against total estimated cost of execution. The corresponding
 cumulative amount at the close of the year appears under ‘Current
 Liabilities as deduction from Advance from customers.
 
 The estimates of saleable area and Construction cost are reviewed
 periodically by the management and effect of any change in estimates is
 recognised in the period such changes are determined.
 
 (c) Interest on delayed payments and other charges are accounted for on
 certainty of realisation.
 
 HOTEL & CLUB
 
 Revenue from rooms, food and beverages, club and other allied services,
 is recognised upon rendering of the services.
 
 OTHER INCOME
 
 Other income is accounted on accrual basis except where the receipt of
 income is uncertain.
 
 TAXES ON INCOME
 
 (a) Current Tax is determined as the amount of tax payable in respect
 of taxable income for the year.
 
 (b) Deferred Ta x is recognised, subject to consideration of prudence,
 in respect of deferred tax Assets/Liabilities arising 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 period. Deferred tax in respect of differential
 income due to accounting of sales on percentage completion basis, being
 not determinate, is not recognised.
 
 INVESTMENTS
 
 (a) Long term investments are carried at acquisition cost and
 investments intended to be held for less than one year are classified
 as current investments and are carried at lower of cost and market
 value. Long Term Investments which have attained the stage of permanent
 diminution in their value are revalued at their current value.
 
 (b) Value of Intangible capital rights created in favour of the company
 in the process of Real Estate activities, being not determinate, are
 not shown in the books of accounts
 
 FOREIGN CURRENCY TRANSACTIONS
 
 Income and Expenditure in foreign currency is converted into rupee at
 the rate of exchange prevailing on the date of the transactions.
 
 EMPLOYEE BENEFITS
 
 (a) Short term employee benefits are charged off at the undiscounted
 amount in the year in which the related service is rendered.
 
 (b) Post employment and other long term employee benefits are charged
 off in the year in which the employee has rendered services. The amount
 charged off is recognised at the present value of the amounts payable
 determined using actuarial valuation techniques. Actuarial gain and
 losses in respect of post employment and other long term benefits are
 charged to Profit and Loss Account.
 
 USE OF ESTIMATES
 
 The preparation of financial statements in confirmity with generally
 accepted accounting principles requires estimates/ assumption to be
 made that affect the reported amount of assets and liabilities on the
 date of financial statements and the reported amount of revenues and
 expenses during the reporting period. Difference between actual results
 and estimates are recognised in the period in which the results are
 known/ materialised.
 
 IMPAIRMENT OF ASSETS
 
 Impairment Loss in the value of assets, as specified in Accounting
 Standard-28 is recognised whenever carrying value of such assets
 exceeds the market value or value in use, whichever is higher.