1. Basis of Accounting :
 
 Financial statements are prepared under historical cost convention on
 accrual basis.
 
 2. Revenue Recognition :
 
 (i) The Company follows Completed Contract Method of accounting in
 respect of its construction activities. The revenue on sale of
 residential/commercial units is recognised in respect of such
 buildings/units wherein the work is completed or is substantially
 completed on the basis of technical estimate of the extent of work
 completed up to the end of the period. The sales are stated in the
 accounts net of Sales Returns.
 
 (ii) The revenue in respect of Manufacturing Activities is recognised
 at the time of despatch of the goods and are net of Sales Tax.
 
 (iii) The revenue from Construction Contracts is recognised on the
 basis of work certified by the Architect.
 
 3. Cost of Sale :
 
 (i) Construction :
 
 Cost of sale is ascertained in respect of units on which revenue is
 recognised during the period and is aggregate of proportionate cost of
 land development rights, certified proportionate cost of construction
 and a proportionate part of general administration, selling and finance
 overheads allocated to respective projects. (Refer to Note No. 12 of
 Schedule `0)
 
 (ii) Manufacturing :
 
 The cost of Sale of manufacturing items is ascertained by addition
 adding cost of Raw Material, Labour Overheads and part of
 Administrative and Finance Cost.
 
 4. Fixed Assets :
 
 Fixed Assets are stated at cost of acquisition less accumulated
 depreciation.
 
 5. Depreciation :
 
 (i) Depreciation has been provided on the Straight Line Method at the
 rates specified in Schedule XIV of the Companies Act, 1956 as amended
 from time to time.
 
 (ii) Depreciation on additions to and/or deletions from fixed assets
 has been charged proportionately for the period for which they were
 used.
 
 6. Inventories and Work-in-Progress :
 
 (i) Construction materials and Raw Material for Manufacturing
 Activities are valued at cost.
 
 (ii) Work-in-Progress comprises of : In case of Construction Activity,
 the cost of land development rights, construction, development costs
 and a part of general administration, selling and finance costs and in
 case of Manufacturing Activities, cost of Raw material, Labour
 overheads and part of administration, finance cost.
 
 (iii) Finished goods of Construction Activity and Manufacturing
 Activities are valued at Cost or Net Realisable Value whichever is
 lower.
 
 (Cost comprising of: For Construction Activities; land development
 rights, certified estimated cost of construction and development and
 part of general administration, selling and finance cost and for
 Manufacturing Activities; cost of Raw Material, Labour Overheads and
 part of administration, finance cost.)
 
 7. Administrative, Selling and Finance Costs :
 
 A part of general administration, finance and selling overheads is
 written off to Profit and Loss Account while rest of which is allocated
 to specific projects on an proportionate basis and is carried forward
 as part of the value of Inventory as certified by the management.
 Finance Cost comprises of interest on borrowings, and bank commission
 charges.
 
 8. Investments :
 
 Investments in Shares are valued at cost.
 
 9. Amounts received from prospective customers:
 
 Amounts received from Customers to whom specific unit is not yet
 allotted are included in the head Advances from customers and grouped
 under Current Liabilities.
 
 10. Retirement Benefits:
 
 (i) Contributions to Provident Fund are accounted on the basis of
 actual liability as per terms of employment.
 
 (ii) The Company contributes towards Group Gratuity Scheme of Life
 Insurance Corporation of India.
 
 11. Foreign Currency Transactions :
 
 Transactions in foreign currencies are recorded at the exchange rates
 prevailing on the date of transaction.