1 The Company is not a Small and Medium Sized Company (SMC) as defined
 in the General Instructions in respect of Accounting Standards notified
 under the Companies Act, 1956, inasmuch as its equity securities are
 listed on the National & Bombay Stock Exchanges, it did have borrowings
 (including public deposits) in excess of Rs. 10 crores at any time
 during the immediately preceding accounting year and its turnover
 (excluding other income) exceeded Rs. 50 crores in the immediately
 preceding accounting year.
 
 2 Accordingly, these financial statements comply in all material
 respects with the relevant provisions of the Companies Act, 1956, the
 Generally Accepted Accounting Principles in India, and the Accounting
 Standards issued by the Institute of Chartered Accountants of India
 which are prescribed in the Companies (Accounting Standards) Rules 2006
 notified by the Central Government under section 211(3C) read with
 sections 210A(1) and 642(1)(a) of the said Act. As required by AS 1
 issued by the Institute of Chartered Accountants of India, the
 accounting policies followed in the preparation of these financial
 statements are disclosed below.
 
 3 Basis of Preparation of Financial Statements
 
 a) Accounting Convention: These financial statements are prepared under
 the historical cost convention.
 
 b) Method of Accounting: As required by Section 209(3)(b) of the
 Companies Act, 1956, these financial statements are prepared in
 accordance with the accrual method of accounting with revenues
 recognized and expenses accounted on their accrual including provisions
 / adjustments for committed obligations and amounts determined as
 payable or receivable during the period.
 
 c) Use of Estimates: The preparation of financial statements requires
 management to make judgements, estimates and assumptions, that affect
 the application of accounting policies and the reported amounts of
 assets and liabilities and disclosures of contingent liabilities at the
 date of these financial statements and the reported amounts of revenues
 and expenses for the years presented. Actual results may differ from
 these estimates.
 
 Estimates and underlying assumptions are reviewed on an ongoing basis.
 Revisions to accounting estimates are recognised in the year in which
 the estimate is revised and future years affected.
 
 d) Consistency: These financial statements have been prepared on a
 basis consistent with previous years and accounting policies not
 specifically referred hereto are consistent with generally accepted
 accounting principles.
 
 e) Cash Flow Statements: Cash Flows are reported as per the Indirect
 Method as specified in AS 3 issued by the Institute of Chartered
 Accountants of India.
 
 f) Contingencies and Events occurring after the Balance Sheet Date: AS
 4 issued by the Institute of Chartered Accountants of India is not
 applicable since there are no such contingencies nor events.
 
 g) Net Profit or Loss for the Period, Prior Period Items and Changes in
 Accounting Policies: The Company''s Profit & Loss Account presents
 profit / loss from ordinary activities. There are no extraordinary
 items or changes in accounting estimates and policies during the year
 under review which need to be disclosed as per AS 5 issued by the
 Institute of Chartered Accountants of India. The prior period
 adjustments represent interest paid for delay in payment of income tax.
 
 h) Previous Year Figures: The figures in the balance sheet for the
 previous year have been rearranged to facilitate comparison.
 
 4 Effect of Changes in Foreign Exchange Rates: In accordance with AS 11
 issued by the Institute of Chartered Accountants of India, transactions
 in foreign currencies are recorded at the rate of exchange prevailing
 on the date of the transaction. Monetary items denominated in foreign
 currency and outstanding at the balance sheet date are translated at
 the rate of exchange prevailing on the balance sheet date. In the case
 forward contracts for foreign exchange, the difference between the
 forward rate and the exchange rate at the date of the transaction is
 recognized over the life of the contract. Such contracts outstanding at
 the year end are marked to market, and the resultant exchange
 difference is recognised as income or expense in the profit and loss
 account. The profit or loss arising on cancellation or renewal of such
 contracts is recognised as income or expense for the year.
 
 5 Fixed Assets
 
 a) Accounting for Fixed Assets: In accordance with AS 10 issued by the
 Institute of Chartered Accountants of India, Fixed Assets are stated at
 cost of acquisition or construction less accumulated depreciation. Cost
 includes all incidental expenses related to acquisition and
 installation, other pre-operative expenses and interest in case of
 construction.
 
 b) Leases: In accordance with Accounting Standard 19, issued by the
 Institute of Chartered Accountants of India, assets given / taken on
 lease under which all risks and rewards of ownership are effectively
 retained by the lessor are classified as operating lease. Lease income
 / payments under operating leases are recognised as an income / expense
 on a straight-line basis over the lease term. The Company has not so
 far entered into any financial lease arrangement.
 
 c) Borrowing Costs: In accordance with Accounting Standard 16 issued by
 the Institute of Chartered Accountants of India, borrowing costs that
 are attributable to the acquisition, construction or production of
 qualifying assets are capitalized as part of the cost of such assets. A
 qualifying asset is an asset is an asset that necessarily requires a
 substantial period of time to get ready for its intended use or sale.
 All other borrowing costs are recognized as an expense in the period in
 which those are incurred.
 
 d) Intangible Assets: In accordance with AS 26 & AS 10 issued by the
 Institute of Chartered Accountants of India, the Company has expensed
 the preliminary expenses and those pre-operative expenses which did not
 result in the creation of a tangible asset. However, share issue
 expenses (which are outside the purview of AS 26) are deferred and
 written off over a period of five years.
 
 e) Impairment of Assets: In accordance with AS 28 issued by the
 Institute of Chartered Accountants of India, the carrying amount of
 cash generating units / assets is reviewed at the balance sheet date to
 determine whether there is any indication of impairment. If such
 indication exists, the recoverable amount is estimated as the net
 selling price or value in use, whichever is the higher. Impairment
 loss, if any, is recognized whenever the carrying amount exceeds the
 recoverable amount.
 
 6 Investments: In accordance with AS 13 issued by the Institute of
 Chartered Accountants of India, investments are classified into long
 term and current investments. Long term investments are carried at
 cost. Provision for diminution, if any, in the value of each long term
 investment is made to recognize a decline other than of a temporary
 nature. Current investments are carried individually at lower of cost
 and fair value and the resultant decline, if any, is charged to
 revenue.
 
 7 Inventories: In accordance with AS 2 & 9 issued by the Institute of
 Chartered Accountants of India,
 
 a) Inventories of finished tenements are valued at the carrying value
 or estimated net realizable value, (as certified by the management)
 whichever is the less.
 
 b) Inventories of work in progress are valued, in accordance with the
 Percentage of Completion Method. Profit on incomplete projects is not
 recognized unless 20% expenditure has been incurred in respect of the
 project. Based on projections and estimates by the Company of the
 expected revenues and costs to completion, provision for losses to
 completion and / or write off of costs carried to inventories has been
 made on projects where the expected revenues are lower than the
 estimated costs to completion. In the opinion of the management, the
 net realisable value of the work in progress will not be lower than the
 costs so included therein.
 
 c) Inventories of construction materials are valued at cost of
 acquisition or net replacement value (as certified by the management),
 whichever is the less.
 
 8 Revenue Recognition :
 
 a) In accordance with AS 9 issued by the Institute of Chartered
 Accountants of India, income from real estate sales is recognized on
 the transfer of all significant risks and rewards of ownership to the
 buyer and it is not unreasonable to expect ultimate collection and no
 significant uncertainty exists regarding the amount of consideration.
 
 b) However, if, at the time of transfer, substantial acts are yet to be
 performed, revenue is recognized on proportionate basis as the acts are
 performed, that is, on the percentage of completion basis.
 Determination of revenues under the percentage of completion method
 necessarily involves making estimates by the Company, some of which are
 of technical nature, concerning, where relevant, the percentages of
 completion, costs to completion, the expected revenues from the project
 and the foreseeable losses to completion. As the construction projects
 necessarily extend beyond one year, revision in estimates of costs and
 revenues during the year under review are reflected in the accounts of
 the year.
 
 9 Expense Recognition: Revenue Expenses such as those incurred on
 foreign and domestic exhibitions, advertisement for sale of tenements,
 interest on borrowings attributable to specific projects are included
 in the valuation of inventories of work in progress. Indirect costs are
 treated as period costs and are charged to the Profit & Loss Account in
 the year incurred. Expenses incurred on repairs & maintenance of
 completed projects are charged to Profit & Loss Account.
 
 10 Employee Benefits :
 
 a) In accordance with Accounting Standard 15 issued by the Institute of
 Chartered Accountants of India, benefits to the employees comprising of
 payments under defined contribution plans like provident fund and
 family pension fund are charged to Profit & Loss Account. There are no
 defined benefit plans.
 
 b) The liability for gratuity is funded through Group Gratuity scheme
 of the Life Insurance Corporation of India which is in nature of a
 Defined Contribution Plan and accordingly periodic contributions to the
 LIC are charged to Profit & Loss Account.
 
 11 Provisions, Contingent Liabilities and Contingent Assets: In
 accordance with Accounting Standard 29 issued by the Institute of
 Chartered Accountants of India, provisions are recognized in the
 accounts in respect of present probable obligations, the amount of
 which can be reliably estimated. Contingent liabilities are disclosed
 in respect of possible obligations that arise from past events but
 their existence is confirmed by the occurrence or non-occurrence of one
 or more uncertain future events not wholly within the control of the
 Company. Contingent assets are not recognized.
 
 12 Tax Expense :
 
 a) In accordance with Accounting Standard 22 issued by the Institute of
 Chartered Accountants of India, Tax expense comprises current corporate
 tax and deferred corporate tax. Current corporate tax is measured at
 the amount expected to be paid to the tax authorities using the
 applicable tax rates and tax laws. Minimum Alternative Tax (MAT) credit
 for a particular assessment year is recognised as an asset only after
 the assessment for that year is complete and such credit is finally
 quantified. The recognition of such credit is limited to the extent
 there is convincing evidence that the Company''s corporate tax liability
 under the normal scheme of taxation, during the period in which the MAT
 Credit can be carried forward u/s 115JAA of the IT Act, 1961, will
 exceed the MAT liability u/s 115JB. In accordance with the
 recommendations contained in the guidance note issued by the Institute
 of Chartered Accountants of India (ICAI), in the year in which the MAT
 credit becomes eligible to be recognised as an asset, t he said asset
 is created by way of a credit to the profit and loss account and shown
 as MAT credit entitlement under the head Current Assets.
 
 b) The Company reviews the MAT credit entitlement at each balance
 sheet date and writes down its carrying amount to the extent such
 credit is set-off u/s 115JAA or there is no longer convincing evidence
 as stated supra. Deferred corporate tax assets and liabilities are
 recognized for future tax consequences attributable to the timing
 differences between taxable income and accounting income that are
 capable of reversal in one or more subsequent periods and are measured
 using tax rates enacted or substantively enacted as at the balance
 sheet date. Deferred corporate tax assets are not recognized unless, in
 the judgement of the management, there is virtual certainty that
 sufficient future taxable income will be available against which such
 deferred tax assets can be realized. The carrying amount of deferred
 corporate tax is reviewed at each balance sheet date.
 
 13 Related Party Disclosures: Please see Annexure
 
 14 Earnings per Share: The Company reports basic and diluted Earnings
 per share (EPS) in accordance with Accounting Standard 20, issued by
 the Institute of Chartered Accountants of India. Basic EPS is computed
 by dividing the net profit or loss for the year attributable to equity
 shareholders by the weighted average number of equity shares
 outstanding during the year. Diluted EPS is computed by dividing the
 net profit or loss for the year attributable to equity shareholders by
 the weighted average number of equity shares outstanding during the
 year as adjusted for the effects of all dilutive potential equity
 shares, except where the results are anti-dilutive. The basic & diluted
 EPS is stated in the Profit & Loss Account as well as in the Notes to
 Accounts.
 
 15 Consolidated Financial Statements: In accordance with AS 21 and AS
 27 issued by the Institute of Chartered Accountants of India, separate
 consolidated financial statements of the Company and its Subsidiaries
 and Jointly Controlled Entities have been prepared by combining on a
 line-to-line basis by adding together the book values of like items of
 assets, liabilities, incomes and expenses after fully eliminating
 intra-group balances, intra-group transactions and unrealised profits
 and losses.
 
 16 Financial Reporting of Interests in Joint Ventures: In accordance
 with Para 53 of AS 27 issued by the Institute of Chartered Accountants
 of India, the Company has made the necessary disclosures in Annexure 1
 hereto. The Consolidated Financial Statements include the book values
 of like items of assets, liabilities, incomes and expenses of the
 Company''s Joint Ventures after fully eliminating intra-group balances,
 intra-group transactions and unrealised profits and losses.
 
 17 Accounting Standards not applicable to the Company during the year
 under review:
 
 a) Construction Contracts: AS 7 is not applicable since the Company is
 not engaged in execution of construction contracts
 
 b) Accounting for Government Grants: AS 12 is not applicable since the
 Company has not so far received any Government Grants.
 
 c) Accounting for Amalgamations: AS 14 is not applicable since the
 Company has not entered into any amalgamation during the year under
 review.
 
 d) Segment Reporting: AS 17 is not applicable since the company
 operates only in one segment, namely, integrated real estate
 development and construction of residential and commercial tenements.
 
 e) Accounting for Investments in Associates in Consolidated Financial
 statements: AS 23 is not applicable because the Company has no
 associates.
 
 f) Discontinuing Operations: AS 24 is not applicable since the Company
 has not so far discontinued operations.
 
 g) Interim Financial Reporting: AS 25 is not applicable since these
 financial statements are not interim statements.
 
 h) Financial Instruments - Recognition & Measurement, Presentation &
 Disclosures: AS 30, 31 & 32 issued by the Institute of Chartered
 Accountants of India are recommendatory in nature for the intial period
 of two years, i.e; FYs 2009-10 & 2010-11 and will become mandatory
 w.e.f 01st April, 2011. Moreover, the said standards have not so far
 been notified by the Central Government u/s 211(3C) of the Companies
 Act,1956. Hence, the Company has not applied these accounting standards
 in the preparation and presentation of these financial statements.