1.  SYSTEM OF ACCOUNTING:
 
 The company adopts the accrual concept in preparation of accounts.
 
 2.  RECOGNITION OF INCOME & EXPENDITURE
 
 All Income & Expenditure are accounted for on accrual basis.
 
 3.  FIXED ASSETS & DEPRECIATION:
 
 A.  Fixed assets are stated at cost of acquisition or construction less
 depreciation. Cost comprises the purchase price and other attributable
 costs including financing costs relating to borrowed funds attributable
 to construction or acquisition of fixed assets up to the date the
 assets is ready for use and adjustments consequent to subsequent
 variations in rates of exchange.
 
 B.  Depreciation on fixed assets:
 
 Depreciation is provided at the rates and in the manner laid down in
 Schedule XIV to the Companies Act, 1956 on Written down value method
 in respect of all assets.
 
 C.  In accordance with Accounting Standard –26 issued by The Institute
 of Chartered Accountants of India, Software is being amortized over a
 period of three years.
 
 4.  BORROWING COST:
 
 Borrowing costs attributable to the acquisition, construction or
 production of qualifying assets (i.e. assets that necessarily take
 substantial period of time to get ready for their intended use or sale)
 are capitalised as part of the cost of such asset up to the date when
 such asset is ready for its intended use or sale. Other borrowing costs
 are recognised as an expense in the period in which they are incurred.
 
 5.  TAXES ON INCOME:
 
 Provision for Current Tax is computed as per Total Income Returnable
 under the Income Tax Act, 1961 taking into account available deductions
 and exemptions.
 
 6.  DEFERRED TAX:
 
 Deferred tax is recognized, subject to the consideration of prudence in
 respect of deferred tax assets, 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
 periods.
 
 7.  INCOME FROM REAL ESTATE DEVELOPMENT PROJECTS:
 
 (a) The Company records revenue on all its Real Estate Development
 Projects based on Accounting Standard – 9. i.e. Revenue Recognition and
 also based on guidance note issued by the Institute of Chartered
 Accountants of India Revenue Recognition for Real Estate Developers.
 
 (b) The full revenue is recognized on sale of property when the Company
 has transferred to the buyer all significant risks & rewards of
 ownership and when the seller has not to perform any substantial acts
 to complete the contract.
 
 (c) However, when the Company is obliged to perform any substantial
 acts after transfer of all significant risks & rewards of ownership on
 sale of property, the revenue is recognized on proportionate basis as
 the acts are performed i.e. by applying the percentage completion
 method.
 
 8.  LEASE OF LAND OF SEZ PROJECT:
 
 Land given on perpetual lease is treated as actual sale of land.
 
 9.  RETIREMENT & OTHER EMPLOYEE BENEFITS:- A.  Defined Contribution
 Plans:- The company''s contribution paid / payable for the year to
 Provident Fund are recognized in the Profit & Loss Account. The company
 has no obligation other than the contribution payable to the
 Government.
 
 B.  The company has defined benefits plans for Gratuity. The liability
 for which is determined on the basis of an actuarial valuation at the
 year end an incremental liability is provided for in the books. The
 gratuity scheme is administered by a trust. The payment for gratuity is
 made to LIC of India through the trust.
 
 C.  The company has a system of providing accumulating compensating
 absences non-vesting and hence no provision is made in the books of
 accounts for the leaves.
 
 10.  IMPAIRMENT OF FIXED ASSETS:
 
 Consideration is given at each Balance Sheet date to determine whether
 there is any indication of impairment of the carrying amount of the
 Company''s fixed assets. If any indication exists, an asset''s
 recoverable amount is estimated. An impairment loss is recognized
 whenever the carrying amount of an asset exceeds its recoverable
 amount. The recoverable amount is the greater of the net selling price
 and value in use. In assessing value in use, the estimated future cash
 flows are discounted to their present value based on an appropriate
 discount factor.
 
 11.  INVENTORY:
 
 A.  In case of inventory of raw materials, the raw materials received
 on the site are treated as consumed in the books of the Company.
 
 B.  The Closing stock of WIP has been valued at cost.
 
 12.  TRANSACTIONS IN FOREIGN CURRENCY
 
 A.  Transactions denominated in foreign currencies are normally
 recorded at the exchange rate prevailing at the time of transaction.
 
 B.  Monetary items denominated in foreign currencies at the period end
 are restated at period end rates.
 
 C.  Non monetary foreign currency items are carried at cost.
 
 D.  Any income or expense on account of exchange difference either on
 settlement or on transaction is recognised in the profit and loss
 account.
 
 13.  EMPLOYEES STOCK OPTION SCHEME
 
 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 Compansation on a straight line basis over the
 vesting period in accordance with the SEBI (Employees Stock Option
 Scheme and Employees Stock Purchase Scheme) Guidelines, 1999 and
 Guidance Note 18 Share Based Payments issued by the ICAI.