A.  System of Accounting:-
 
 (i) The Company follows the accrual system of accounting except :
 
 (a) in case of interest on allotment/call money in arrears on shares
 and debentures which are accounted as and when received and
 
 (b) Interest on delayed payment by customers against dues will be
 accounted for on cash basis owing to practical difficulties and
 uncertainties.
 
 (ii) Assets and Liabilities are recorded at historical cost.
 
 (iii) USE OF ESTIMATES: The preparation of financial statements in
 conformity with generally accepted accounting principles (GAAP)
 requires Management to make estimates and assumptions that affect the
 reported amounts of assets and liabilities and the disclosures of
 contingent liabilities on the date of financial statements and reported
 amounts of revenue and expenses for that year. Actual results could
 differ from these estimates. Any revision to accounting estimates is
 recognized prospectively in current and future periods.
 
 B.  Revenue Recognition :-
 
 (ia) In respect of Real Estate Projects undertaken upto 31.03.2005, the
 company continues to follow the complete project method of accounting
 for projects. Under this method, revenue is recognised only when
 project is completed or substantially completed, that is only minor
 work is expected other than warranty work. Cost and progress payments
 received are accumulated during the course of the project but revenue
 is not recognised until the project activity is substantially
 completed. The liquidated damages and other claims by customers are
 accounted for on final settlement. The construction and development
 cost relating to the sold units are considered for profit based on
 technical evaluation of cost for completion.
 
 (ib) In respect of Real Estate Projects undertaken w.e.f. 1st April,
 2005, the revenue is recognised on Percentage of Completion Method. The
 revenue is recognised, in relation to the sold areas only, on the basis
 of percentage of actual cost incurred thereon including land as against
 the total estimated cost of the projects under execution subject to
 such actual cost being 30% or more of the total estimated cost.  The
 estimates relating to saleable area, sale value and costs are revised
 periodically by the management.
 
 (i) In the case of projects relating to development and sale of plots
 and transfer/sale of right, revenue is recognised on execution of
 transfer documents/possession documents.
 
 (ii) Income from services is accounted for on the basis of the bills
 raised on customers.
 
 (iii) The rentals from leased premises are considered as revenue income
 on accrual basis. In case of sale of leased premises, rental income is
 accounted for up to the date of flat buyer agreement. The advance rent,
 if any, received from the lessees pertaining to the period after the
 date of flat buyer agreement is refundable to the buyer.
 
 C.  Fixed Assets :-
 
 Fixed Assets are stated at cost less depreciation.
 
 D.  Depreciation :-
 
 Depreciation is provided on Straight Line Method at the rate and in the
 manner prescribed in Schedule XIV to the Companies Act, 1956.
 
 E.  Inventories :-
 
 Inventories are valued at lower of cost or fair market value/ net
 realisable value.
 
 F.  Investments :-
 
 Investments (Long-Term) are valued at cost less permanent diminution,
 if any. Investments (Current) are valued at lower of cost or fair
 market value.
 
 G.  EMPLOYEE BENEFITS: - Employee Benefits are recognized/accounted for
 on the basis of revised AS-15 detailed as under:- 
 
 a) Short Term Employee benefits are recognized as expense at the
 undiscounted amount in the Profit & Loss account of the year in which
 they are incurred.
 
 b) Employee benefits under defined contribution plans comprise of
 contribution to Provident Fund. Contributions to Provident Fund are
 deposited with appropriate authorities and charged to Profit & Loss
 account.
 
 c) Employee Benefits under defined benefit plans comprise of gratuity
 and leave encashment which are accounted for as at the year end based
 on actuarial valuation by following the Projected Unit Credit (PUC)
 method. Liability for gratuity is funded with Life Insurance
 Corporation of India.
 
 d) Termination benefits are recognized as an Expense as and when
 incurred.
 
 e) The actuarial gains and losses arising during the year are
 recognized in the Profit & Loss account of the year without resorting
 to any amortization.
 
 H.  Taxation:-
 
 Tax expenses for the year comprises of current tax and deferred tax
 charge or credit.  The deferred tax asset and deferred tax liability is
 calculated by applying tax rates and tax laws that have been enacted or
 substantially enacted by the Balance Sheet date.  Deferred tax assets
 arising mainly on account of brought forward losses and unabsorbed
 depreciation under tax laws are recognised, only if there is a virtual
 certainty of its realisation. Other deferred tax assets are recognised
 only to the extent there is a reasonable certainty of realisation in
 future. Deferred tax assets /liabilities are reviewed at each balance
 sheet date based on developments during the year, further future
 expectations and available case laws to reassess
 realisation/liabilities.
 
 I.  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.
 
 Reversal of impairment losses recognized in prior years is recorded
 when there is an indication that the impairment losses recognized for
 the asset no longer exist or have decreased. However, the increase in
 carrying amount of an asset due to reversal of an impairment loss is
 recognized to the extent it does not exceed the carrying amount that
 would have been determined (net of depreciation) had no impairment loss
 been recognized for the assets in prior years.
 
 J.  Contingencies:
 
 The company creates a provision when there is present obligation as a
 result of a past event that probably requires an outflow of resources
 and a reliable estimate can be made of the amount of the obligation. A
 disclosure for a contingent liability is made when there is a possible
 obligation or a present obligation that may, but probably will not,
 require an outflow of resources. When there is a possible obligation or
 a present obligation in respect of which the likelihood of outflow of
 resources is remote, no provision or disclosure is made.
 
 K.  Borrowing Costs:-
 
 Interest and other borrowing costs on specific borrowings attributable
 to qualifying assets are capitalised. Other borrowing costs are charged
 to revenue over the tenure of loan.
 
 L.  Foreign Currency transactions:-
 
 Transactions in foreign currencies are recorded at the exchange rate
 prevailing on the date of the transactions. Monetary items denominated
 in foreign currency and outstanding at the balance sheet date are
 translated at the exchange rate prevailing on the balance sheet date.
 Exchange differences on traction of monetary assets and liabilities and
 realised gain and losses on foreign currency transactions are
 recognised in the Profit and Loss account.