a.  Basis of Accounting
 
 Financial statements are prepared under historical cost convention on
 accrual basis in accordance with the requirements of the Companies
 Act,1956, except in the case of items which are uncertain in nature and
 not possible to quantify.
 
 b.  Revenue Recognition
 
 i. The Company follows substantial completed contract method of
 accounting in respect of its construction activity. Under this method
 profit in respect of units sold is recognised only when the work in
 respect of the relevant units are substantially completed, which is
 determined on technical estimates as certified by management.
 
 ii. The completion status of a project at the end of each accounting
 period, the estimated cost for completion of the construction and
 development work relating to the units sold, which are considered for
 profit are estimated on the basis of technical evaluation and are so
 certified by the management.  The auditors have relied upon such
 management certifcate..
 
 iii. Revenue recognition in respect of transactions for sale of
 properties / development rights is on the date of execution of
 agreement to sale and are subject to conclusion of formalities as to
 conveyance and compliance of applicable legal formalities.
 
 iv. Revenue recognition in respect of constructed premises is on the
 basis of booking done by the prospective customer and the same is
 subject to execution of registered sale deed under the Maharashtra
 Ownership Flats Act (MOFA) and payment of consideration.
 
 v. Sales in respect of a particular project is accounted for, net of
 cancellation, in the same accounting period.
 
 c.  Fixed Assets :-
 
 Fixed Assets are stated at cost of acquisition less accumulated
 depreciation.
 
 d.  Depreciation
 
 i. Depreciation on fixed assets has been provided under Written Down
 Value method at the rates prescribed under Schedule XIV to the
 Companies Act, 1956.
 
 ii. Depreciation on additions to fixed assets has been charged from the
 date when they were frst put to use.
 
 iii. Goodwill is amortised over period of fve years in equal
 installments.
 
 e.  Inventories
 
 i.  Construction materials are valued at cost.
 
 ii. Work in progress are valued at costs consisting of land development
 rights, construction, development, administration, marketing and fnance
 expenses or market value whichever is lower. For this purpose items of
 the same project are compared in totality.
 
 iii. Finished goods are valued at cost consisting of land development
 rights, construction, development, administration, marketing and fnance
 expenses or market value whichever is lower. For this purpose items of
 the same project are compared in totality.
 
 2) LOANS & BORROWINGS:
 
 a.  Secured Loans are subject to charge created / to be created on the
 assets/properties of the Company.
 
 b.  In case of disputed /defaulted loans taken by the Company,
 provision for interest due on the outstanding secured loans has been
 made at the last contractual rate of interest. No provision is being
 made for interest on unpaid interest as also for any penal interest and
 other charges.
 
 c.  The Company is in the process of restructuring and renegotiating
 its outstanding unsecured loans.  Consequently provision for interest
 due on the outstanding unsecured loans has been made on simple interest
 basis at rate which is consistent with the trend at which other
 unsecured loans are restructured and renegotiated, and not at the
 original /last contracted rate of interest, further no provision for
 interest is being made on the unpaid interest amount. On account
 payments made by the Company to its lenders are frst apportioned
 towards unpaid principal, instead of unpaid interest, without the
 consent of the lenders, this practice would result in to reduction in
 provision for probable interest liability.
 
 d.  In respect of all the loans, secured and unsecured, (which are not
 re- negotiated) no provision has been made for compound interest and
 penal interest. The same will be accounted for on fnal settlement of
 the accounts with the lenders. To that extent Company has Contingent
 Liability which is unascertainable.
 
 e.  The Company in the past has entered into settlement with several
 lenders of which the company has failed to meet its commitment in
 respect of Ranbaxy Laboratories
 
 Ltd. The agreed liability as refected in the Books of Accounts of the
 Company is Rs.60 lacs in respect of Ranbaxy Laboratories Ltd. (Previous
 Year Rs.60 lacs).  The waiver of interest liability in terms of the
 settlement with Ranbaxy Laboratories Ltd amounting to Rs. 21.77 lacs
 was credited to Work in Progress account during the earlier years. In
 the opinion of the Company the revised liabilities as per the
 settlement with these parties are still valid and subsisting as the
 Company has not received any legal notice for termination of the
 settlement from the concerned Lenders.
 
 f. The balance in the secured loan account of State Bank of India as
 per the Company’s books of accounts as on 31.03.2011 is Rs. 4,580 lacs
 (including interest provision of Rs.1,857 lacs). This balance is based
 on the settlement arrived at with the Bank vide its letter dated 14th
 June 2006. As per the said settlement the entire dues were to be paid
 off by 14th December, 2007 to which the Company has not adhered. The
 Company is in continuous dialogue with the Bank to settle the dues. The
 Company has not received any formal notice terminating the settlement.
 The Company has also not received any balance confrmation from the
 Bank. As per the legal advice received by the Company, the settlement
 agreement dated 14th June 2006 is valid, subsisting and binding till
 date. In view of the facts as mentioned herein it is not possible to
 ascertain whether the Bank has withdrawn the concessions granted in the
 settlement of June 2006. Accordingly the fnal liability towards this
 Bank loan is not ascertainable. The Company has to that extent
 unascertainable contingent liability towards any additional claim which
 may be made by the Bank against this loan liability.