A.  Basis of accounting:
 
 The financial statements have been prepared to comply in all material
 aspects with the notified accounting standards by Companies Accounting
 Standards Rules'' 2006 (as amended) and the relevant provisions of the
 Companies Act'' 1956. The financial Statements are prepared under the
 historical cost convention and income and expenses are accounted for on
 an accrual basis'' in accordance with the accounting principles
 generally accepted in India. The accounting policies have been
 consistently applied by the Company and are consistent with those used
 in the previous year.
 
 B.  Events Occurring After the Date of Balance Sheet:
 
 Material events occurring after the date of Balance Sheet are taken
 into cognizance.
 
 C.  Revenue Recognition:
 
 Income from Operations:
 
 Income from Operations is determined as the aggregate during the period
 of the project promotion fee earned'' value of the construction work
 done'' increase in land development cost'' sale of land and the proceeds
 from the demolition contracts.
 
 (a) Project Promotion Fee:
 
 Project promotion fee is the fee charged to the customers on allotment
 of flats at the specific rate per square foot of built up area to be
 constructed'' in consideration of the various services rendered by the
 company for promoting the respective projects. Project * promotion
 receipts include sale of land to the customers.
 
 (b) Value of Construction Work:
 
 The value of construction work done during the year is determined as
 follows:
 
 i. In the case of projects completed during the year'' it is the
 difference between the value of construction to the customers on
 completion of the project and the; value of construction to the
 customers at the beginning of the accounting year''
 
 ii. In the case of projects in progress at the close of the accounting
 period'' it is the difference between the value of construction to the
 customers determined at the close of the accounting period and the
 value of construction to the customers at the beginning of the
 accounting period.
 
 iii. Value of construction to the customers in respect of completed
 projects is the full value that is paid /payable by the customers for
 the project on this accourt.
 
 iv. Value of construction to the customers in respect of projects in
 progress at the beginning of the accounting period and at the close of
 the accounting period is the value of work-in-progress on those dates
 respectively.
 
 (c) Demolition Proceeds:
 
 Demolition proceeds for the period is the aggregate sum stated as
 consideration in the ''-——— demolition agreements executed during the
 period'' for demolition of existing structures on the properties taken
 up for development by the company.
 
 (d) Increase in Land Development Cost
 
 Increase in Land Development cost is the difference between the amount
 received from Prospective buyer and amount paid to the vendor at
 initial stage.
 
 (e) Service charges
 
 Service Charges is the nature of income which is generated from making
 out the deal between the land seller and prospective buyer''
 
 (1) Revenue from Sale of Land
 
 Revenue from Sale of land is the difference between the cost of land
 purchased (inclusive of stamp duty and other charges) and Sale value of
 the land.
 
 D.  Fixed Assets:
 
 Expenditure which is of a capita! nature is capitalised at cost which
 comprises purchase price (net of rebates and discounts)'' statutory
 levies and other expenses/charges directly expended in acquiring such
 assets.
 
 E.  Intangible Assets:
 
 There are no Intangible Assets of the Company.
 
 F.  Impairment:
 
 The company assesses at each balance shee* date whether there is any
 indication that an asset may be impaired. If any such indication
 exists'' then impairment loss is recognised wherever the carrying amount
 of an asset is in excess of its recoverable amount and the same is
 recognized as an expenses in the statement of profit and loss and
 carrying amount of the asset is reduced to its recoverable amount.
 
 Reveisal of impairment losses recognised in prior years is recorded
 when there is an ind.cation ¦*
 
 that the impairment losses recognized for the asset no longer exist or
 have decreased.
 
 G.  Depreciation:
 
 Depreciation is provided from the date on which assets have been
 installed and put to jse on Written down Value method at the rates
 specified under Schedule XIV to the Compani3s Act'' 1956. Depreciation
 is provided from the date of capitalization till the date of sale of
 assets.  According to the circular No. 14'' dated 20-12-1993''
 depreciation on assets'' whose actual cost does not exceed five thousand
 rupees have been provided at the rate of hundred percent.  Depr
 jciation is not provided on Land and building.
 
 H.'''' Work - In - Progress:
 
 Work - in - Progress in respect of each project in progress is first
 valued at the close of the accojnting year at the aggregate of the cost
 of materials consumed'' labour charges and the other expenditure
 incurred on the project. Thereafter the adjustment for value addition
 is made on the following basis:
 
 i. Where the actual expenditure incurred up to the end of the
 accounting year in a project is between 30% and 89% of its total
 estimated expenditure'' and this total expenditure is less than its
 total estimated revenue'' value addition is determined as 2/3rds of the
 propolionate estimated surplus (such proportion being the percentage of
 actual expenditure to total estimated expenditure). Where however the
 actual expenditure of a project up to the close .- __ of the accounting
 year is above 89% of the total estimated expenditure of the project''
 value addition is determined as the 4/5th of the proportionate
 estimated surplus (such proportion being the percentage of actual
 expenditure to total estimated expenditure)
 
 ii. Where total estimated expenditure of a project is inexcess of its
 total estimated revenue'' the entire actual expenditure comprising of
 the cost of the material consumed'' labour and other expenditure
 incurred on the project is considered as the value of work-in-progress
 till the project is completed.
 
 I.  Land Owner''s Account:
 
 Amounts due from customers towards land cost are debited to their
 accounts on the land cost falling due under the agreements of the
 project promotion and construction are credited to the respective land
 owner''s accounts. Advance to land owners are reflected as the aggregate
 of amounts paid to them and amounts due from them'' reduced by the
 amounts credited to them as aforesaid.
 
 J.  Inventories:
 
 The inventories are valued at cost''
 
 K.  Recognition of Income and Expenditure:
 
 Income and expenditure are recognised on accrual basis and provision is
 made for all known expenses.
 
 L.  Borrowing Costs
 
 There are no borrowing costs attributable to the acquisition or
 construction of assets'' Other borrowing costs are recognised as
 expenses in the period in which they are incurred.
 
 M'' Taxation
 
 Tax expense comprises current tax and deferred tax
 
 The accounting treatment for income-tax in respect of company''s income
 is based on the Accounting Standard 22 on ''Accounting for Taxes on
 Income'' issued by the Institute of Chartered Accountants of India.
 Provision for current income-tax is made in accordance with the Income-
 tax Act'' 1961.
 
 Deferred tax assets and liabilities are recognized at substantively
 enacted tax rates'' subject to the consideration of prudence'' on timing
 difference'' 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.
 
 N.  Employee Benefits:
 
 a.  Short term Employee Benefits
 
 All Short term employee benefits payable including salaries and other
 allowances are recognized on accrual basis'' in the manner provided in
 AS 15.
 
 b.  Other Long Term Employee Benefits
 
 No provision has been made for leave encashment retirement benefit for
 the pe''iod as the terms of employment does not provide for such
 obligation on the company.