1.  Nature of Operations
 
 KCL Infra Projects Limited (the Company) was incorporated on 21s''
 July, 1995 at Jaipur, India. The main object of the company is to carry
 on business of Construction & Infrastructure Activities. In addition to
 that company is also engaged in dealings of Shares & securities,
 derivatives and other investments.
 
 2.  Basis of Accounting
 
 The financial statements have been prepared and presented under the
 historical cost convention on accrual basis of accounting, in
 accordance with the accounting principals generally accepted in India
 and comply with the applicable accounting standards issued by the
 Institute of Chartered Accountants of India (ICAI) and the relevant
 provisions of the Companies Act, 1956, to the extent applicable. Except
 where otherwise stated, the accounting principles have been
 consistently applied.
 
 3.  Fixed Assets
 
 Fixed Assets are stated at cost less accumulated depreciation.
 Depreciation is provided on Straight Line method on prorata basis at
 the rates, which are prescribed in Schedule XIV of the Companies Act,
 1956.
 
 4.  Investments
 
 Long term investments are stated at cost and provision is made to
 recognize any diminution in value, other than that of a temporary
 nature.
 
 5.  Inventories
 
 Inventories are valued as follows:
 
 Constructions & Infrastructure
 
 Projects in progress are valued at cost.
 
 • Equity Shares & Units of Mutual Fund
 
 Equity Shares & Units of Mutual Fund are valued at Cost or realizable
 value, whichever is lower. Cost is determined on a First in First out
 Basis.
 
 6.  Revenue recognition
 
 Revenue is recognized to the extent that it is probable that the
 economic benefits wi II flow to the Company and the revenue can be
 reliably measured.
 
 The Company is also carrying on business in Derivative segment. The
 Company has recorded the turnover on the basis of Contract Notes of
 Purchase & Sell.
 
 7.  Income taxes
 
 Tax expense comprises both current and deferred taxes. Current
 income-tax is measured at trie amount expected to be paid to the tax
 authorities in accordance with the Indian Income Tax Act. Deferred
 income taxes reflect the impact of current year timing differences
 between taxable income and accounting income for the year and reversal
 of timing differences of earlier years. Deferred tax is measured based
 on the tax rates and the tax laws enacted or substantively enacted at
 the balance sheet date. Deferred tax assets are recognised only to the
 extent that there is reasonable certainty that sufficient future
 taxable income will be available against which such deferred tax assets
 can be realised. Deferred tax assets are recognised on carry forward of
 unabsorbed depreciation and tax losses only if there is virtual
 certainty that such deferred tax assets can be realised against future
 taxable profits.
 
 8.  Earnings per Share
 
 Basic earnings per share are calculated by dividing the net profit or
 loss for the period attributable to equity shareholders by the number
 of equity shares outstanding during the period.
 
 9.  Segment Reporting Policies Identification of segments:
 
 The Company''s operating businesses are organized and managed separately
 according to the nature of products and services provided, with each
 segment representing a strategic business unit that offers different
 products and serves different markets.
 
 Allocation of common costs:
 
 Common allocable costs are allocated to each segment according to the
 relative contribution of each segment to the total common costs.
 
 Segment Policies:
 
 The Company prepares its segment information in conformity with the
 accounting policies adopted for preparing and presenting the financial
 statements of the Company as a whole.
 
 10.  Provisions and Contingent Liabilities
 
 The Company recognizes a provision where 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.
 Disclo- sures 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. Where there is a possible
 obligation or a present obligation that the likelihood of outflow of
 resources is remote, no provision or disclosure is made.