[A] SIGNIFICANT ACCOUNTING POLICIES
 
 General:
 
 [i] The Accounts are prepared on the historical cost basis and on the
 principles of a going concern.
 
 [ii] Accounting policies not specifically referred to otherwise are
 consistent and in consonance with generally accepted accounting
 principles.
 
 Revenue Recognition:
 
 [i] Revenue/Income and Cost/Expenditure are accounted for on accrual
 basis.
 
 [ii] Cement Sales/ Clinker Sales/ Asbestos Sheets Sales are net of
 Excise Duty/Value Added Tax and exclusive of Self Consumption.
 
 [iii] Construction Revenue/Income from/in respect of Contracts entered
 on or after 01.04.2003 are accounted as per AS-7 [Revised].
 Construction Revenue/Income from/in respect of Contracts entered before
 01.04.2003 are accounted as per erstwhile AS-7.
 
 [iv] Entrance Fee for Golf Membership is recognised in the year of
 receipt, irrespective of the period of membership.
 
 [v] Advances received for Time Share Weeks are reckoned as income in
 equal amounts spread over the Time Share period commencing from the
 year in which full payment is received.
 
 [vi] Escalations/Claims are taken in the accounts on the basis of
 receipt or as acknowledged by the client depending upon the certainty
 of receipt.
 
 [vii] Revenue from Real Estate Development of constructed properties is
 recognised based on the Percentage of completion method. Total sale
 consideration as per the legally enforceable agreements to sell entered
 into is recognised as revenue based on the percentage of actual project
 costs incurred to total estimated project cost, subject to such actual
 cost incurred being 30 percent or more of the total estimated project
 cost. Project cost includes cost of land, estimated cost of
 construction and development of such properties. The estimates of the
 saleable area and costs are reviewed periodically and effect of any
 changes in such estimates recognised in the period such changes are
 determined. Where aggregate of the payment received from customers
 provide insufficient evidence of their commitment to make the complete
 payment, revenue is recognised only to the extent of payment received.
 
 Revenue from sale / sub-lease of undeveloped land is recognized when
 full consideration is received against agreement to sell / sub-lease;
 all significant risks and rewards are transferred to the customer and
 possession is handed over.
 
 Revenue from sale / sub-lease of developed land / plot is recognised
 based on the Percentage of completion method when a firm agreement
 has been entered into and 30 percent or more of the consideration is
 received and where no significant uncertainty exists regarding the
 amount of the consideration that will be derived from such sales and it
 is not unreasonable to expect ultimate collection, and all significant
 risks and rewards are transferred to the customer.
 
 [viii] (a) The costs that are incurred before a construction contract
 is secured are treated as expenses for the year in which these are
 incurred and charged to revenue.
 
 (b) The costs attributable to contracts are normally identified to
 respective contracts. However, the costs which cannot be
 identified/identifiable to a specified contract are charged to the
 general revenue in the year in which such costs are incurred.
 
 Use of Estimates:
 
 The preparation of financial statements in conformity with generally
 accepted accounting principles requires estimates and assumptions to be
 made that affect the reported amounts of assets and liabilities on the
 date of the financial statements and the reported amounts of revenues
 and expenses during the reporting period.  Differences between actual
 results and estimates are recognised in the period in which the results
 are known/ materialise.
 
 Fixed Assets:
 
 Fixed Assets are stated at Cost of acquisition or construction
 inclusive of freight, erection & commissioning charges, duties and
 taxes, expenditure during construction period, interest on borrowing
 and financial costs upto the date of acquisition/ installation. Major
 Expenditure in Hotel properties involving relocation and redesigning of
 various outlets, guest floors and additions thereto, enhancement in the
 value of assets and revenue generating capacity is capitalised.
 
 Depreciation:
 
 Depreciation on Fixed Assets is provided on Straight Line Method as per
 the classification and in the manner specified in Schedule-XIV to the
 Companies Act, 1956.
 
 Investments:
 
 Long term Investments are stated at Cost and where there is permanent
 diminution in the value of investments a provision is made wherever
 applicable. Current Investments are carried at lower of cost or quoted/
 fair value, computed categorywise. Dividend is accounted for as and
 when received.
 
 Employee Benefits:
 
 Employee Benefits are provided in the books as per AS -15 (revised) in
 the following manner :
 
 [i] Provident Fund and Pension contribution - as a percentage of
 salary/wages is a Defined Contribution Scheme.
 
 [ii] Gratuity and Leave Encashment is a Defined Benefit obligation. The
 liability is provided for on the basis of actuarial valuation made at
 the end of each financial year.
 
 Inventories :
 
 [i] Stock of Cement/ Asbestos Sheets is valued at estimated cost or net
 realisable value, whichever is less. Value of Cement, Asbestos Sheets
 and Clinker lying in the factory premises includes excise duty,
 pursuant to the Accounting Standard (AS-2) [Revised].
 
 [ii] The Closing stocks are valued on the basis of Weighted Average
 Cost Method. Material at Transit is taken at cost.
 
 [iii] Work-in-Progress/Material-in-Process are valued at estimated
 cost.
 
 [iv] Hotel Business - Stock of Food, Beverages, Operating Stores and
 Supplies are valued at cost. Consumption of material is valued at Cost.
 
 Project Under Development :
 
 Project Under Development includes cost of Land purchased and other
 costs incurred including internal development and external development
 charges, construction cost, material cost, cost of services and other
 related costs.
 
 Foreign Currency Transactions:
 
 [i] Monetary Assets and Liabilities related to Foreign Currency
 transactions and outstanding, except assets and liabilities hedged by a
 hedge contract, at the close of the year, are expressed in Indian
 Rupees at the rate of exchange prevailing on the date of Balance Sheet.
 
 [ii] Monetary Assets and Liabilities hedged by a hedge contract are
 expressed in Indian Rupees at the rate of exchange prevailing on the
 date of Balance Sheet adjusted to the rates in the hedge contracts. The
 exchange difference arising either on settlement or at reporting date
 is recognised in the Statement of Profit & Loss except in cases where
 they relate to acquisition of fixed assets, in which case they are
 adjusted to the carrying cost of such assets.
 
 [iii] Transactions in Foreign Currency are recorded in the Books of
 Account in Indian Rupees at the rate of exchange prevailing on the date
 of transaction.
 
 [iv] The Company uses foreign currency contracts to hedge its risks
 associated with foreign currency fluctuations. The Company does not use
 derivative financial instrument for speculative purposes.
 
 Lease Rentals:
 
 [i] Operating Leases: Rentals are expensed with reference to lease
 terms.
 
 [ii] Finance Leases: The lower of the fair value of the assets or
 present value of the minimum lease rentals is capitalised as fixed
 assets with corresponding amount shown as lease liability. The
 principal component in the lease rental is adjusted against the lease
 liability and the interest component is charged to Statement of Profit
 & Loss .
 
 Research and Development:
 
 Revenue expenditure on Research and Development is charged to Statement
 of Profit & Loss in the year in which it is incurred. Capital
 expenditure on Research and Development is shown as an addition to
 Fixed Assets.
 
 Miscellaneous Expenditure:
 
 [i] Preliminary and Share Issue Expenses are written-off in the year in
 which they are incurred.
 
 [ii] Hotel Business - Miscellaneous Expenditure is stated at cost less
 accumulated amortisation. Fees paid to the Franchiser is amortised over
 a period of five years.
 
 Expenditure During Construction Period:
 
 Expenditure incurred on projects/assets during construction
 
 /implementation is capitalised and apportioned to projects/ assets on
 commissioning.
 
 Earnings Per Share:
 
 Basic earnings per equity share is computed by dividing net profit
 after tax by the weighted average number of equity shares outstanding
 during the year. Diluted earnings per equity share is computed by
 dividing adjusted net profit after tax by the aggregate of weighted
 average number of equity shares and dilutive potential equity shares
 outstanding during the year.
 
 Borrowing Costs:
 
 Borrowing Costs that are attributable to the acquisition or
 construction of qualifying assets are capitalised as part of the cost
 of such assets. A qualifying asset is one that takes substantial period
 of time to get ready for intended use or sale. All other borrowing
 costs are charged to revenue.
 
 Segment Reporting:
 
 Revenue, operating results, assets and liabilities have been identified
 to represent separate segments on the basis of their relationship to
 the operating activities of the segment. Assets, Liabilities, Revenue
 and Expenses which are not allocable to separate segment on a
 reasonable basis, are included under Unallocated.
 
 Taxes on Income:
 
 Current Tax is determined as per the provisions of the Income Tax Act
 in respect of Taxable Income for the year. Deferred Tax Liability is
 computed as per Accounting Standard [AS-22]. Deferred Tax Asset and
 Deferred Tax Liability are computed by applying tax rates and tax laws
 that have been enacted or substantively enacted by the Balance Sheet
 Date.
 
 Impairment of Assets:
 
 If the carrying amount of Fixed Assets exceeds the recoverable amount
 on the reporting date, the carrying amount is reduced to the
 recoverable amount. The recoverable amount is measured as the higher of
 the net selling price or the value in use determined by the present
 value of estimated future cash flows.
 
 Provisions, Contingent Liabilities and Contingent Assets [AS - 29]:
 
 Provisions involving substantial degree of estimation in measurement
 are recognised when there is a present obligation as a result of past
 events and it is probable that there will be an outflow of resources.
 Contingent Liabilities are not recognised but are disclosed in the
 notes. Contingent Assets are neither recognised nor disclosed in the
 financial statements. The Provisions, Contingent Liabilities and
 Contingent Assets are reviewed at each Balance Sheet date.
 
 Accounting for Oil Activity:
 
 The Company has adopted Full Cost Method of Accounting for its Oil &
 Gas Exploration Activity and all costs incurred in Acquisition,
 Exploration and Development are accumulated.
 
 Premium on Redemption of Debentures
 
 Premium paid/ payable on Redemption of Debentures, net of tax impact,
 is adjusted against the Securities Premium Reserve.