1.  Basis of accounting
 
 The Financial Statements are prepared under historical cost convention,
 on accrual basis, in accordance with the generally accepted accounting
 principles in India and to comply with the Accounting Standards
 prescribed in the Companies (Accounting Standards) Rules, 2006 issued
 by the Central Government in exercise of the power conferred under
 sub-section (I) (a) of section 642 and the relevant provisions of the
 Companies Act, 1956 (the Act).
 
 2.  Use of estimates
 
 The preparation of financial statements in conformity with generally
 accepted accounting principles requires the management to make
 estimates and assumptions that affect the reported amounts of assets
 and liabilities and the disclosure of contingent liabilities on the
 date of the financial statements and the results of operations during
 the reporting periods.  Although these estimates are based upon
 managements knowledge of current events and actions, actual results
 could differ from those estimates and revisions, if any, are recognised
 in the current and future periods.
 
 3.  Intangible assets and amortisation
 
 Softwares which are not integral part of the hardware are classified as
 intangibles and are stated at cost less accumulated amortisation.
 These are being amortised over the estimated useful life of 5 years, as
 determined by the management.
 
 4.  Fixed assets and depreciation/ amortisation
 
 a) Fixed assets (gross block) are stated at historical cost less
 accumulated depreciation and impairment (if any). Cost comprises the
 purchase price and any attributable cost of bringing the asset to its
 working condition for its intended use.
 
 Building / specific identifiable portions of building, including
 related equipments are capitalised when the construction is
 substantially complete or upon receipt of the occupancy certificate,
 whichever is earlier.
 
 Depreciation on assets (including buildings and related equipments
 rented out and included under current assets as stocks) is provided on
 straight-line method at the rates and in the manner prescribed in
 Schedule XIV to the Companies Act, 1956.
 
 b) Capital work-in-progress represents expenditure incurred in respect
 of capital projects under development and are carried at cost. Cost
 includes land, related acquisition expenses, development/ construction
 costs, borrowing costs and other direct expenditure including advances
 to contractors and others.
 
 c) Leasehold land, under perpetual lease, is not amortised. Leasehold
 lands, other than on perpetual lease, are being amortised on time
 proportion basis over their respective lease periods.
 
 5.  Investments
 
 Investments are classified as long term or current, based on
 managements intention at the time of purchase. Investments that are
 readily realisable and intended to be held for not more than a year are
 classified as current investments. All other investments are classified
 as long-term investments.
 
 Trade investments are the investments made for or to enhance the
 Companys business interests.
 
 Current investments are stated at lower of cost and fair value
 determined on an individual investment basis. Long-term investments are
 stated at cost and provision for diminution in their value, other than
 temporary, is made in the financial statements.
 
 Profit/loss on sale of investments is computed with reference to the
 average cost of the investment.
 
 6.  Stocks
 
 Stocks are valued as under:
 
 a) Land and plots other than area transferred to constructed properties
 at the commencement of construction are valued at lower of cost/
 approximate average cost/ as revalued on conversion to stock and net
 realisable value. Cost includes land (including development rights and
 land under agreements to purchase) acquisition cost, borrowing cost,
 estimated internal development costs and external development charges.
 
 b) Constructed properties other than Special Economic Zone (SEZ)
 projects includes the cost of land (including development rights and
 land under agreements to purchase), internal development costs,
 external development charges, construction costs, overheads, borrowing
 cost, development/ construction materials and is valued at lower of
 cost/ estimated cost and net realisable value.
 
 c) In case of SEZ projects, constructed properties include internal
 development costs, external development charges, construction costs,
 overheads, borrowing cost, development/ construction materials, and is
 valued at lower of cost/ estimated cost, and net realisable value.
 
 d) Development rights represents amount paid under agreement to
 purchase land/ development rights and borrowing cost incurred by the
 Company to acquire irrevocable and exclusive licenses/ development
 rights in identified land and constructed properties, the acquisition
 of which is at an advanced stage.
 
 e) Construction/ development material is valued at lower of cost and
 net realisable value.
 
 f) Rented buildings and related equipments are valued at lower of cost
 (less accumulated depreciation) and net realisable value.
 
 7.  Revenue recognition
 
 a) Revenue from constructed properties:
 
 (i) Revenue from constructed properties, other than SEZ projects, is
 recognised on the percentage of completion method. Total sale
 consideration as per the duly executed, agreements to sell /
 application forms (containing salient terms of agreement to sell), is
 recognised as revenue based on the percentage of actual project costs
 incurred thereon to total estimated project cost, subject to such
 actual cost incurred being 30 per cent or more of the total estimated
 project cost. Estimated project cost includes cost of land/ development
 rights, borrowing costs, overheads, estimated construction and
 development cost of such properties. The estimates of the saleable area
 and costs are reviewed periodically and effect of any changes in such
 estimates is recognised in the period in which such changes are
 determined. However, when the total project cost is estimated to exceed
 total revenues from the project, loss is recognised immediately.
 
 (ii) For SEZ projects, revenue from development charges is recognised
 on the percentage of completion method in accordance with the terms of
 the Co-developer Agreements / Memorandum of understanding (MOU), read
 with addendum, if any. The total development charges is recognised as
 Revenue on the percentage of actual project cost incurred thereon to
 total estimated project cost subject to such actual cost incurred being
 30% or more of the total estimated project cost. The estimated project
 cost includes construction cost, development and construction material,
 internal development cost, external development charges, borrowing cost
 and overheads of such project. Revenue from Lease of land pertaining to
 such projects is recognised in accordance with the terms of the
 Co-developer Agreements/ MOU on accrual basis.
 
 b) Sale of land and plots (including development rights) is recognised
 in the financial year in which the agreement to sell/ application forms
 (containing salient terms of agreement to sell) is executed. Where the
 Company has any remaining substantial obligations as per the
 agreements, revenue is recognised on the percentage of completion
 method of accounting, as per (a) (i) above.
 
 c) Sale of development right is recognized in the financial year in
 which the agreements of sale are executed.
 
 d) Revenue from wind power generation is recognised on the basis of
 actual power sold (net of reactive energy consumed), as per the terms
 of the power purchase agreements entered into with the respective
 purchasers.
 
 e) Income from interest is accounted for on time proportion basis
 taking into account the amount outstanding and the applicable rate of
 interest.
 
 f) Dividend income is recognised when the right to receive is
 established.
 
 g) Share of profit/ loss from firms in which the Company is a partner
 is accounted for in the financial year ending on (or immediately
 before) the date of the balance sheet.
 
 h) Rent, service receipts and interest from customers under agreement
 to sell is accounted for on accrual basis except in cases where
 ultimate collection is considered doubtful.
 
 i) Sale of Certified Emission Reductions (CERs) and Voluntary Emission
 Reductions (VERs) is recognised as income on the delivery of the
 CERs/VERs to the customers account and receipt of payment.
 
 8.  Unbilled receivables
 
 Unbilled receivables disclosed under Schedule 11 - Other Current
 Assets represents revenue recognised based on Percentage of completion
 method (as per para no. 7(a) and 7(b) above), over and above the amount
 due as per the payment plans agreed with the customers.
 
 9.  Co st of revenue
 
 a) Cost of constructed properties other than SEZ projects, includes
 cost of land (including cost of development rights/ land under
 agreements to purchase), estimated internal development costs, external
 development charges, borrowing costs, overheads, construction costs and
 development/ construction materials, which is charged to the profit and
 loss account based on the percentage of revenue recognised as per
 accounting policy no. 7 (a) above, in consonance with the concept of
 matching costs and revenue. Final adjustment is made upon completion of
 the specific project.
 
 For SEZ projects, cost of constructed properties includes estimated
 internal development costs, external development charges, borrowing
 costs, overheads, construction costs and development/ construction
 materials, which is charged to the profit and loss account based on the
 percentage of revenue recognised as per accounting policy no. 7 (a)
 above, in consonance with the concept of matching costs and revenue.
 Final adjustment is made upon completion of the specific project.
 
 b) Cost of land and plots includes land (including development rights)
 acquisition cost, estimated internal development costs and external
 development charges, which is charged to profit and loss account based
 on the percentage of land/ plotted area in respect of which revenue is
 recognised as per accounting policy no. 7(b) above to the saleable
 total land/ plotted area of the scheme, in consonance with the concept
 of matching cost and revenue. Final adjustment is made upon completion
 of the specific project.
 
 c) Cost of development rights is measured at the rate at which the same
 have been purchased from the LOCs as per the agreement.
 
 10.  Borrowing costs
 
 Borrowing costs that are attributable to the acquisition and/or
 construction of qualifying assets are capitalised as part of the cost
 of such assets, in accordance with notified Accounting Standard 16
 Borrowing Costs. A qualifying asset is one that necessarily takes a
 substantial period of time to get ready for its intended use.
 Capitalisation of borrowing costs is suspended in the period during
 which the active development is delayed due to, other than temporary,
 interruption. All other borrowing costs are charged to the profit and
 loss account as incurred.
 
 11.  Taxation
 
 Tax expense for the year comprises current income tax and deferred tax
 Current income tax is determined in respect of taxable income with
 deferred tax being determined as the tax effect of timing differences
 representing
 
 the difference between taxable income and accounting income that
 originate in one period, and are capable of reversal in one or more
 subsequent period(s). Such deferred tax is quantified using rates and
 laws enacted or substantively enacted as at the end of the financial
 year.
 
 12.  Foreign currency transactions
 
 Transactions in foreign currency are accounted for at the exchange rate
 prevailing on the date of the transaction. All monetary items
 denominated in foreign currency are converted into Indian rupees at the
 year-end exchange rate. Income and expenditure of the overseas liaison
 office is translated at the yearly average rate of exchange.
 
 The exchange differences arising on such conversion and on settlement
 of the transactions are recognised in the profit and loss account.
 
 In terms of the clarification provided by Ministry of Corporate Affairs
 (MCA) vide a notification no. G.S.R.225(E) on Accounting Standard –
 11 Changes in Foreign Exchange Rates, the exchange gain/loss on long
 term foreign currency monetary items are adjusted in the cost of
 depreciable capital assets. The other exchange gains/ losses related to
 current assets has been recognised in the profit and loss account.
 
 13.  Employee benefits
 
 Expenses and liabilities in respect of employee benefits are recorded
 in accordance with the notified Accounting Standard 15 - Employee
 Benefits.
 
 (i) Provident fund
 
 The Company makes contribution to statutory provident fund in
 accordance with the Employees Provident Funds and Miscellaneous
 Provisions Act, 1952. In terms of the Guidance on implementing the
 revised AS – 15, issued by the Accounting Standards Board of the ICAI,
 the provident fund trust set up by the Company is treated as a defined
 benefit plan since the Company has to meet the interest shortfall, if
 any. Accordingly, the contribution paid or payable and the interest
 shortfall, if any is recognised as an expense in the period in which
 services are rendered by the employee.
 
 (ii) Gratuity
 
 Gratuity is a post employment benefit and is in the nature of a defined
 benefit plan.  The liability recognised in the balance sheet in respect
 of gratuity is the present value of the defined benefit/ obligation at
 the balance sheet date, together with adjustments for unrecognised
 actuarial gains or losses and past service costs. The defined benefit/
 obligation is calculated at or near the balance sheet date by an
 independent actuary using the projected unit credit method.
 
 Actuarial gains and losses arising from past experience and changes in
 actuarial assumptions are credited or charged to the profit and loss
 account in the year in which such gains or losses are determined.
 
 (iii) Compensated absences
 
 Liability in respect of compensated absences becoming due or expected
 to be availed within one year from the balance sheet date is recognised
 on the basis of undiscounted value of estimated amount required to be
 paid or estimated value of benefit expected to be availed by the
 employees. Liability in respect of compensated absences becoming due or
 expected to be availed more than one year after the balance sheet date
 is estimated on the basis of an actuarial valuation performed by an
 independent actuary using the projected unit credit method.
 
 Actuarial gains and losses arising from past experience and changes in
 actuarial assumptions are credited or charged to the profit and loss
 account in the year in which such gains or losses are determined.
 
 (iv) Employee Shadow Option Scheme (Cash Settled Options)
 
 Accounting value of Cash Settled Options granted to employees under the
 Employees Shadow Option Scheme is determined on the basis of
 intrinsic value representing the excess of the average market price,
 during the month before the reporting date, over the exercise price of
 the shadow option. The same is charged as employee benefits over the
 vesting period, in accordance with Guidance Note No. 18 Share Based
 Payments, issued by the ICAI.
 
 (v) Other short term benefits
 
 Expense in respect of other short-term benefits is recognised on the
 basis of the amount paid or payable for the period during which
 services are rendered by the employee.
 
 Contribution made towards Supernnuation Fund (funded by payments to
 Life Insurance Corporation of India (LIC)) are charged to the profit
 and loss account on accrual basis.
 
 14.  Leases
 
 Assets subject to operating leases are included under fixed assets or
 current assets as appropriate. Rent (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 expense in the
 profit and loss account.
 
 15.  Employees Stock Option Plan (ESOP)
 
 Accounting value of stock options is determined on the basis of
 intrinsic value representing the excess of the market price on the
 date of grant over the exercise price of the options granted under the
 Employees Stock Option Scheme of the Company, and is being amortised
 as Deferred employee compensation on a straight-line basis over the
 vesting period in accordance with the SEBI (Employee Stock Option
 Scheme and Employee Stock Purchase Scheme) Guidelines, 1999 and
 Guidance Note 18 Share Based Payments issued by the ICAI.
 
 16.  Impairment of assets
 
 The Company assesses at each balance sheet date whether there is any
 indication that an asset may be impaired. If any such indication
 exists, the Company estimates the recoverable amount of the asset. If
 such recoverable amount of the asset or the recoverable amount of the
 cash generating unit to which the asset belongs is less than its
 carrying amount, the carrying amount is reduced to its recoverable
 amount and the reduction is treated as an impairment loss and is
 recognised in the profit and loss account. If at the balance sheet date
 there is an indication that a previously assessed impairment loss no
 longer exists, the recoverable amount is reassessed and the asset is
 reflected at the recoverable amount subject to a maximum of depreciated
 historical cost and is accordingly reversed in the profit and loss
 account.
 
 17.  Contingent liabilities and provisions
 
 Depending upon the facts of each case and after due evaluation of legal
 aspects, claims against the Company are accounted for as either
 provisions or disclosed as contingent liabilities. In respect of
 statutory dues disputed and contested by the Company, contingent
 liabilities are provided for and disclosed as per original demand
 without taking into account any interest or penalty that may accrue
 thereafter.  The Company makes a provision when there is a present
 obligation as a result of a past event where the outflow of economic
 resources is probable and a reliable estimate of the amount of
 obligation can be made. Possible future or present obligations that may
 but will probably not require outflow of resources or where the same
 cannot be reliably estimated, is disclosed as contingent liability in
 the Financial Statements.
 
 18.  Earning Per Share
 
 Basic Earning Per Share is calculated by dividing the net profit or
 loss for the period attributable to equity shareholders by the weighted
 average number of equity shares outstanding during the period. The
 weighted average numbers of equity shares outstanding during the period
 are adjusted for events including a bonus issue, bonus element in a
 rights issue to existing shareholders, share split, and reverse share
 split (consolidation of shares).
 
 For the purpose of calculating diluted earning per share, the net
 profit or loss for the period attributable to equity shareholders and
 the weighted average number of shares outstanding during the period are
 adjusted for the effects of all dilutive potential equity shares. The
 period during which, number of dilutive potential equity shares change
 frequently, weighted average number of shares are computed based on a
 mean date in the quarter, as impact is immaterial on Earning Per Share.