1.1 Basis for Preparation of Financial Statements: The Financial
 Statements are prepared under the historical cost convention, on the
 accrual basis of accounting and in accordance with generally accepted
 accounting principles in India and comply with the Accounting Standards
 prescribed by the Companies (Accounting Standards) Rules 2006, to the
 extent applicable and in accordance with the Provisions of the
 Companies Act, 1956.
 
 1.2.  Use of Estimates:
 
 Preparation of Financial Statements in conformity with Generally
 Accepted Accounting Principles requires Company Management to make
 estimates and assumptions that affect reported balance of assets and
 liabilities and disclosures relating to contingent assets and
 liabilities as of the date of Financials and reported amounts of income
 and expenses during the period. Examples of such estimate include
 Revenues and Profits expected to be earned on projects carried on by the
 Company, contract costs expected to be incurred for completion of
 project, provision for doubtful debts, income taxes, etc. Actual
 results could differ from these estimates. Differences, if any, between
 the actual results and estimates are recognised in the period in which
 the results are known or materialised.
 
 1.3.  Expenditure
 
 Expenses are accounted on the accrual basis and provi- sions are made
 for all known losses and liabilities.
 
 1.4.  Valuation of Inventories and Construction Work-in- Progress:
 
 a) Valuation of Inventories, representing stock of materials at project
 site/with contractors, has been done after providing for obsolescence,
 if any, at lower of Cost or Net Realisable Value. The cost is generally
 calculated on FIFO basis.
 
 b) Valuation of inventories, representing food and beverages, held at
 Sheraton Bangalore at Brigade Gateway has been done after providing for
 obsoles- cence, if any, at lower of Cost or Net Realisable Value. The
 cost is generally calculated on weighted average basis.
 
 c) The value of construction Work-in-Progress during the period is
 determined as follows:
 
 ¾ The aggregate of opening Work-in-Progress, cost of construction, and
 construction overheads incurred during the year as reduced by cost of
 completed contract transferred to income and closing stock of materials
 if any.
 
 ¾ The value of completed projects intended for immediate sale is
 considered as an inventory and value of completed projects/units
 intended to be retained/leased is considered as fixed asset.
 
 ¾ Land held for development, Work-in-Progress, Trans- ferable
 Development Rights, and Closing Stock of unsold units is valued at Cost
 or Net Realisable Value whichever is lower.
 
 1.5.  Cash Flow Statement:
 
 Cash Flows are reported using the indirect method, whereby Profit before
 tax is adjusted for the effects of transactions of a non-cash nature
 and any deferrals or accruals of past or future cash receipts or
 payments. The cash flows from regular revenue generating; fnancing and
 investing activities of the Company are segregated.
 
 1.6.  Events occurring after the date of Balance Sheet: Material events
 occurring after the date of Balance Sheet are taken into cognisance.
 
 1.7.  Depreciation:
 
 Depreciation in respect of fixed assets, is provided adopting Written
 Down Value Method at the rates provided under Schedule XIV to the
 Companies Act, 1956, except on assets held for the purpose of sale, no
 depreciation is charged.
 
 ¾ On the following assets leased out, depreciation is charged on
 Straight Line Method over the period of the lease as shown below.
 
 Depreciation is charged on a pro-rata basis for assets purchased / put
 to use / sold during the year. Individual assets costing less than Rs
 5,000/- is charged off in the year of purchase.
 
 1.8. Revenue Recognition: ¾ Income from operations is determined and
 recog- nised, based on the percentage of completion method, as the
 aggregate of the Profits earned on the projects completed/under
 completion and the value of construction work done during the period.
 
 Profit so recognised in respect of individual projects is adjusted to
 ensure that it does not exceed the estimated overall Profit margin. Loss
 on projects, if any, is fully provided for.
 
 Stage of completion of projects in progress is deter- mined on the
 basis of the proportion of the contract costs incurred, in respect of
 individual projects for work performed up to the period of the financial
 statements, bear to the estimated total project cost.  Income
 recognised as contract revenue during the period is based on the lower
 of stage of completion as determined above and percentage of actual
 amount received on sale (pursuant to agreements entered into by the
 Company) of the estimated contract value of these projects. Project
 revenues on new projects are recognised when the stage of completion of
 each project reaches a significant level, which is estimated to be at
 least 25%.
 
 The estimates for sale value and contract costs are reviewed by
 Management periodically and the cumulative effect of the changes in
 these estimates, if any, are recognised in the period in which these
 changes may be reliably measured.
 
 ¾ In respect of sale of completed units, revenue is recognised when the
 significant risks and rewards of ownership of the units in real estate
 have been passed on to the buyer.
 
 ¾ Interest income is recognised on time basis and is determined by the
 amount outstanding and rate applicable.
 
 ¾ Dividend income is recognised as and when right to receive payment is
 established.
 
 ¾ Rental income / lease rentals are recognised on accrual basis in
 accordance with the terms of agreement.
 
 ¾ Differential income arising on account of any charges collected
 including Deposits and the related expenses incurred are recognised in
 the year of completion of the project / handing over of the fats to the
 customers.
 
 ¾ Income for operations of Brigade International School at Gateway is
 recognised on accrual basis in accor- dance with the terms of
 agreement.
 
 ¾ In respect of Brigade Sheraton operation, revenue from rooms,
 restaurants, banquets and other services comprise of renting of rooms,
 sale of food and beverages, allied services relating to hotel
 operations, including net income from telecommu- nication services and
 management and operating fees. Revenue is recognised upon rendering of
 the services.
 
 1.9.  Fixed Assets:
 
 Fixed assets are stated at cost of acquisition including directly
 attributable costs for bringing the asset into use, less accumulated
 depreciation. Capital Work-in-Progress comprises the cost of fixed
 assets under construction and not yet ready for their intended use.
 
 1.10.  Foreign Currency Transactions:
 
 Foreign currency transactions are restated at the rates ruling at the
 time of receipt/payment and all exchange losses/gains arising there
 from are adjusted to the respective accounts.  All monetary items
 denominated in foreign currency are converted at the rates prevailing
 on the date of the Financial Statement.
 
 1.11.  Investments:
 
 Investments are classifed as Current Investments and Long Term
 Investments. Long Term Investments are carried at the cost, unless
 there is a permanent diminution in value of the investments and Current
 Investments are carried at the lower of cost or market value.
 
 1.12.  Employee benefits:
 
 a) Short-Term Employee benefits:
 
 The employee benefits payable only within 12 months of rendering the
 services are classifed as Short Term Employee benefits. benefits such as
 salaries, leave travel allowance, short term compensated absences,
 etc., and the expected cost of bonus are recognised in the period in
 which the employee renders the related services.
 
 b) Post Employment benefits: 
 
 i.  Defned Contribution Plans:
 
 The Company has contributed to state governed Provident Fund Scheme,
 Employee State Insurance Scheme, and Employee Pension Scheme which are
 Defned Contribution Plans. Contribution paid or payable under the
 Schemes is recognised during the period in which employee renders the
 related service.  
 
 ii.  Defned benefit Plans:
 
 The Employees Gratuity is a Defned benefit Plan.
 
 The present value of the obligation under such plan is determined based
 on the actuarial valuation using the projected unit credit method which
 recognises each period of service as giving rise to an additional unit
 of employee benefit entitlement and measures each unit separately to
 build up the financial obligation. The Company has an Employee Gratuity
 Fund managed by Life Insurance Corporation of India (LIC). Actuarial
 gains or losses are charged to Profit and Loss Account.
 
 
 iii. Liability in respect of leave encashment is provided for on
 actuarial basis using the projected unit credit method same as above.
 
 1.13.  Borrowing Costs
 
 Cost of funds borrowed for acquisition of fixed assets up to the date
 the asset is put to use is added to the value of the assets.
 
 1.14.  Earnings per Share:
 
 Basic Earnings per Share is computed by dividing net income by the
 weighted average number of common stock outstanding during the period.
 
 The number of shares used in computing diluted earnings per share
 comprises the weighted average shares considered for deriving basic
 earnings per share, and also the weighted average number of equity
 shares that could have been issued on the conversion of all dilutive
 potential equity shares. The diluted potential equity shares are
 adjusted for the proceeds receivable, had the shares been actually
 issued at fair value (i.e., the average market value of the outstanding
 shares). Diluted potential equity shares are deemed converted as of the
 beginning of the period, unless issued at a later date.
 
 1.15.  Provision for Taxation:
 
 Deferred Tax is recognised, subject to the consideration of prudence,
 in respect of deferred tax assets or liabilities, on timing
 differences, being the difference between taxable incomes and
 accounting incomes that originate in one period, and are reversible in
 one or more subsequent periods.
 
 The provision for taxation is made on Taxes Payable Method after
 considering the effect of deduction under Section 35D, Section 80IB and
 Section 115JBof the Income Tax Act, 1961.
 
 1.16.  Impairment of Assets:
 
 At the end of each year, the Company determines whether a provision
 should be made for impairment loss on fixed assets by considering the
 indications that an impairment loss may have occurred in accordance
 with Accounting
 
 Standard-28 Impairment of Assets prescribed under the Companies
 (Accounting Standards) Rules 2006, where the recoverable amount of any
 fixed asset is lower than its carrying amount, a provision for
 impairment loss on fixed assets is made for the difference.
 
 1.17.  Provisions and Contingent Liabilities:
 
 Provision is recognised when an enterprise has a present obligation as
 a result of past event and is probable that an outfow of resources will
 be required to settle the obligation, in respect of which a reliable
 estimate can be made. Provisions are determined based on management
 estimates required to settle the obligation at the balance sheet date.
 These are reviewed at each balance sheet date and adjusted to refect
 the current management estimate.  Where no reliable estimate can be
 made, a disclosure is made as contingent liability. A disclosure for a
 contingent liability is also made when there is possible obligation or
 a present obligation that may, but probably will not, require an outfow
 of resources. Where there is a possible obligation or a present
 obligation in respect of which the likelihood of outfow of resources is
 remote, no provision or disclosure is made.
 
 1.18.  Amortisation of Miscellaneous Expenditure: Expenses incurred
 towards Initial Public Offer and other deferred expenses (being
 operational expenses in respect of certain projects incurred till
 commencement of commercial operation) classifed under Miscellaneous
 Expenditure are written off equally over a period of 5 years.
 
 In case of Sheraton Hotel Bangalore at Brigade Gateway, pre-operative
 expenses incurred till commencement of commercial operation classifed
 under Miscellaneous Expenditure are written off equally over a period
 of 5 years.