1.  SYSTEM OF ACCOUNTING:
 
 The financial statements are prepared under historical cost convention,
 on accrual basis of accounting, in accordance with the provisions of
 the Companies Act, 1956 and the Generally Accepted Accounting
 Principles (GAAP) applicable in India which complies with the
 accounting standards prescribed in the Companies (Accounting Standards)
 Rules, 2006 issued by the Central Government, in consultation with the
 National Advisory Committee on Accounting Standards, to the extent
 applicable.
 
 2.  USE OF ESTIMATES
 
 The Preparation of the financial statements in conformity with Indian
 GAAP requires the management to make estimates and assumptions that
 affect the reported amounts of assets and liabilities, disclosure of
 contingent liabilities as at the date of financial statements and
 reported amounts of revenue and expenses during the reported period.
 Such estimates are on a reasonable and prudent basis taking into
 account all available information; actual results could differ from
 estimates. Differences are recognized in the year in which the results
 are ascertained. Differences on account of revision of estimates,
 actual outcome and existing estimates are recognized prospectively once
 such results are known / materialized in accordance with the
 requirements of the respective accounting standard as may be
 applicable.
 
 3.  INVENTORIES
 
 Inventory comprises of property held for sale, property under
 construction (work in progress) and stock of construction materials.
 
 Unsold premises held as stock in trade are valued at cost. Cost of
 construction/ development material is valued at lower of cost or net
 realizable value. Work-in-Progress comprises of cost of acquisition of
 land, if any, construction & development expenses, and borrowing cost.
 Necessary provisions are considered if net realizable value of premises
 is less than cost. The Company values the cost of inventories on FIFO
 basis.
 
 4.  FIXED ASSETS
 
 a) Intangible Assets
 
 i) Intangible assets are recognized if they are separately identifiable
 and the Company expects to receive the future economic benefits arising
 out of them. Such assets are stated at cost less accumulated
 amortization and impairment if any. Intangible assets comprises of
 Computer Software.
 
 b) Tangible Assets
 
 The fixed assets are stated at cost less accumulated depreciation and
 impairment, if any. Cost comprises of all expenses incurred in bringing
 the assets to its present location including installation and
 commissioning expenses.
 
 5.  DEPRECIATION / AMORTISATION:
 
 a) Computer Software is amortised over a period of five years.
 
 b) Depreciation on tangible fixed assets other than buildings is
 provided on written down value method, at the rates and manner
 prescribed in Schedule XIV to the Companies Act, 1956. In case of
 impairment of assets, depreciation is provided on the revised carrying
 amounts of assets over its remaining useful life.
 
 c) The depreciation in case of buildings is provided on straight line
 method at the rates and manner prescribed in Schedule XIV to the
 Companies Act, 1956.
 
 d) Assets costing Rs. 5000 or less individually are fully depreciated
 in the year of purchase.
 
 6.  A) RECOGNITION OF REVENUE & EXPENDITURE OF PROPERTY DEVELOPMENT
 BUSINESS:
 
 a) The Company adopts the accrual system of accounting. Revenue is
 recognised as and when there is a reasonable certainty of its ultimate
 realisation.
 
 b) Revenue from real estate projects under development is recognized
 upon transfer of all significant risks and rewards of ownership of such
 real estate/ property and is accounted on percentage completion method.
 
 Sales consideration includes the aggregate amounts of the sales price
 of the land and the development consideration as per the agreements
 entered into with the buyer and is recognised as a percentage of the
 construction cost incurred for work performed upto the reporting date
 bear to the estimated construction cost of the project.
 
 c) The expenditure incurred is accumulated under the head
 work-in-progress and collections are accumulated and carried forward
 under the head advance received from customers.
 
 B) Dividend income is recognized when the right to receive is
 established.
 
 C) Interest income is recognized on accrual basis.
 
 7.  INVESTMENTS:
 
 a) Long term investments in shares and capital of partnership firm are
 stated at cost. The provision for diminution in the value of long term
 investment is made if such a diminution is other than temporary in
 nature.
 
 b) Current investments are stated at lower of cost or fair value.
 
 8.  EMPLOYEE BENEFITS:
 
 a) Defined Contribution Plans
 
 Contributions paid/payable to defined contribution plan comprising of
 provident funds to employees is recognised in the profit and loss
 account each year.
 
 b) Defined Benefit Plans
 
 Post employment benefits are recognized as an expense in the profit and
 loss account for the year in which the employee has rendered services.
 The expense is recognized at the present value of the amount payable
 determined using actuarial valuation techniques. Actuarial gains and
 losses in respect of post employment benefits are charged to the profit
 and loss account.
 
 c) Short-term employee benefits
 
 Short-term employee benefits are recognized as an expense at the
 undiscounted amount in the profit and loss account of the year in which
 the related service is rendered.
 
 9.  BORROWING COSTS:
 
 Borrowing costs that are attributable to the acquisition, construction
 or production of qualifying assets are treated as direct cost and are
 considered as part of cost of such assets. A qualifying asset is an
 asset that necessarily requires a substantial period of time to get
 ready for its intended use or sale. All other borrowing costs are
 recognised as an expense in the period in which they are incurred.
 
 10.  LEASES:
 
 Lease arrangements where the risk and rewards incident to the ownership
 of the asset substantially vest with the lessor are recognized as
 operating lease.
 
 a) As Lessee - Operating Lease:
 
 Lease rentals in respect of assets taken on operating lease are charged
 to profit and loss account over the lease term on systematic basis
 which is more representative of the time pattern of the Companies
 benefit.
 
 b) As Lessor - Operating Lease:
 
 Lease income is recognized in the Profit and Loss Account over the
 lease term on systematic basis which is more representative of time
 pattern of Companies benefit.
 
 c) Initial direct cost is charged to profit & loss account in the year
 of lease.
 
 11.  TAXES ON INCOME
 
 a) Provision for current tax is made on the basis of taxable profits
 computed for the current accounting period (reporting period) in
 accordance with the provisions of Income Tax Act, 1961.
 
 b) Deferred tax is calculated at the rates and laws that have been
 enacted or substantively enacted as of the Balance Sheet date and is
 recognized on timing differences that originate in one period and are
 capable of
 
 reversal in one or more subsequent periods. Deferred tax assets are
 recognized on carry forward of unabsorbed depreciation and tax losses
 only if there is virtual certainty that sufficient future taxable
 income will be available against which such deferred tax asset can be
 realized. Other deferred tax assets are recognised only to the extent
 there is a reasonable certainty of realization in future. The effect on
 deferred tax assets and liabilities of change in tax rates is
 recognized in the profit & loss account in the period of enactment of
 the change.
 
 12.  IMPAIRMENT
 
 The Company assesses at each balance sheet whether there is any
 indication that assets may be impaired. If any such indications exist,
 the Company estimates the recoverable amount of the assets or the
 cash-generating unit and if the same is less than its carrying amount,
 the carrying amount is reduced to its recoverable amount.  The
 reduction is treated as an impairment loss and is recognized in the
 profit and loss account. If at the balance sheet date there is an
 indication that if a previously assessed impairment loss no longer
 exists, the recoverable amount is reassessed and the assets are
 reflected at the recoverable amount.
 
 13.  PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:
 
 a) A provision is recognised when the Company has a present obligation
 as a result of the past event and it is probable that an outflow of
 resources would be required to settle the obligation, in respect of
 which reliable estimate can be made. Provisions are reviewed on each
 balance sheet date to effect the current best estimation.
 
 b) Contingent liabilities are disclosed separately by way of note to
 financial statements after careful evaluation by the management of the
 facts and legal aspects of the matter involved in the case of
 
 i.  a probable obligation arising from the past event, when it is not
 probable that an outflow of resources will be required to settle the
 obligation.
 
 ii.  a possible obligation, unless the probability of out flow of
 resources is remote.
 
 c) Contingent assets are neither recognized nor disclosed.