A.  BASIS OF PREPARATION OF FINANCIAL STATEMENTS
 
 1. The Financial Statements are prepared under historical cost
 convention on accrual basis and going concern concept and materially
 comply with Accounting Standards (AS) as mandated by Rule 3 of the
 Companies (Accounting Standards) Rules, 2006 and the relevant
 provisions of the Companies Act, 1956, to the extent applicable.
 
 2. The Company is a non small and medium sized company (Non-SMC) as
 defined in the General Instructions relating to Accounting Standards
 notified and accordingly the Company has complied with the Accounting
 Standards as applicable to Non-SMC.
 
 3.  Use of Estimates: The preparation of financial statements requires
 the Management of the Company to make estimates and assumptions
 considered in the reported amounts of assets and liabilities (including
 contingent liabilities) as of the date of the financial statement &
 reported income and expenses during the reporting period.  Examples of
 such estimates includes provisions for doubtful debts, employee
 retirement benefit plans, provisions for income taxes, useful life of
 fixed assets, accounting for work executed etc.
 
 B.  REVENUE RECOGNITION
 
 1.  In respect of property development and / or Construction contracts,
 the Company follows percentage completion method as per Accounting
 Standard 7 issued by the Institute of Chartered Accountants of India.
 The percentage of completion is stated on the basis of physical
 measurement of work actually completed/ actual cost incurred as
 compared to total estimated cost, at the balance sheet date, taking
 into account the contractual price and revision thereto. Losses on
 contracts are fully accounted for as and when incurred. Foreseeable
 losses are accounted for when they are determined except to the extent
 they are expected to be recovered through claims presented or to be
 presented to the customer or in arbitration. Expenditure incurred in
 respect of additional costs/ delays are accounted in the year in which
 they are incurred. Claims made in respect thereof are accounted as
 income in the year of receipt of arbitration award or acceptance by
 client or evidence of acceptance received from the client. Project
 Development Income is the fee charged to the customers on transfer of
 property in consideration of various services rendered by the Company
 for promoting the respective projects.
 
 2.  Dividend income is recognized when the right to receive the payment
 is established.
 
 3.  In respect of other incomes, accrual system of accounting is
 followed.
 
 C.  FIXED ASSETS, DEPRECIATION & IMPAIRMENT
 
 1.  The Fixed Assets are stated at cost of acquisition including
 interest paid on specific borrowings up to the date of acquisition /
 installation of the assets and improvement thereon less depreciation.
 
 2.  In respect of construction of assets forming part of expansion
 project, directly attributable costs including financing costs relating
 to specific borrowings are also capitalised.
 
 3.  Depreciation is provided on fixed assets, on straight-line method,
 on pro-rata basis as per the rates specified in Schedule XIV of the
 Companies Act, 1956.
 
 4.  All assets individually costing Rs. 5,000 or below are fully
 depreciated in the year it is put to use.
 
 5.  Advances paid towards acquisition of fixed assets and cost of
 assets not put to use before the year end are shown under Capital Work
 - in - Progress.
 
 6.  Intangible assets comprising SAP software and other computer
 software are stated at cost of acquisition less accumulated
 amortisation. The SAP software cost is amortised over a period of five
 years on a pro-rata basis.
 
 7. The Company assesses at each balance sheet date whether there is any
 indication that an asset may be impaired.  If any such indication
 exists the Company estimates the recoverable amount of the assets. If
 such recoverable amount of the asset or recoverable amount of the cash
 generating divisions which the assets belongs to is less than its
 carrying amount, the carrying amount is reduced to its recoverable
 amount. The reduction is treated as impairment loss and recognized in
 the profit and loss account.
 
 D.  OPERATING LEASES
 
 The Company is obligated under non-cancelable leases for office and
 residential space that are renewable on a periodic basis at the option
 of both the lessor and lessee. Lease expenses are charged to the profit
 and loss account on a straight line basis over the lease term.
 
 The Company leases office facilities and residential space/facilities
 under cancelable operating lease agreements.  Assets subject to
 operating leases are included under fixed assets or current assets as
 appropriate. Lease income is recognized in the profit and loss account
 on a straight-line basis over the lease term. Costs, including
 depreciation, are recognized as an expense in the profit and loss
 account.
 
 E. VALUATION OF CLOSING STOCK
 
 a.  Raw Material: Raw Material, Stores and Spares are valued at
 Weighted Average Cost. Cost comprises all costs of purchase.
 
 b.  Work-in-progress: Work-in-progress is valued at cost or the
 contract rates whichever is lower.
 
 c.  Completed projects: Completed Projects are valued at cost or net
 realizable value, whichever is less.
 
 F.  INVESTMENTS
 
 Investments are classified as long-term and current investments.
 Long-term investments are shown at cost or written down value (in case
 of other than temporary diminution) and current Investments are shown
 at cost or market value whichever is lower.
 
 G.  EMPLOYEE BENEFITS
 
 a. Short Term employee benefits
 
 All employee benefits falling due wholly within twelve months of
 rendering the service are classified as short term employee benefits.
 The benefits like salaries, wages, short term compensated absences etc.
 and the bonus, exgratia are recognized in the period in which the
 employee renders service.
 
 b.  Post employment benefits
 
 - Provident Fund
 
 The Company''s contribution to Provident Fund is deposited with the
 Regional Provident Fund Commissioner and is charged to Profit and Loss
 account every year.
 
 - Gratuity
 
 The Company is having Defined Benefit plan for the Gratuity and the
 provision is made based on actuarial valuation in accordance with the
 AS-15 of The Institute of Chartered Accountants of India.
 
 - Leave Encashment
 
 Provision for leave encashment in respect of unavailed leave standing
 to the credit of employees is made on actuarial basis in accordance
 with AS-15 of The Institute of Chartered Accountants of India.
 
 H. TAX ON INCOME
 
 a. The accounting treatment for income tax in respect of Company''s
 income is based on the Accounting Standard 22 on Accounting for Taxes
 on Income issued by the Institute of Chartered Accountants of India.
 Tax on income for the current period is determined on the basis of
 Taxable Income computed in accordance with the provisions of the Income
 Tax Act 1961.
 
 b.  Deferred Tax on timing differences between the accounting income
 and taxable income for the year is quantified using the tax rates and
 laws enacted or substantively enacted as on the Balance Sheet date.
 Deferred tax assets are recognized 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. In
 situations where the company has carry forward unabsorbed depreciation
 or carry forward tax losses, all deferred tax assets are recognized
 only if there is virtual certainty supported by convincing evidence
 that they can be realized against future taxable profits. At each
 Balance Sheet date unrecognized deferred tax assets of earlier years
 are re-assessed and recognized to the extent that it has become
 reasonably certain that future taxable income will be available against
 which such deferred tax assets can be realised.
 
 I. FOREIGN CURRENCY TRANSACTIONS
 
 Foreign currency transactions are accounted on the exchange rate
 prevailing at the date of the transaction. Foreign currency monetary
 items outstanding as at the Balance Sheet date are reported using the
 closing rate. Gains and losses resulting from the settlement of such
 transactions and translation of monetary assets and liabilities
 denominated in foreign currencies are recognized in the Profit and Loss
 Account.
 
 J. BORROWING COSTS
 
 Borrowing costs that are directly attributable to the acquisition or
 construction of a qualifying asset are considered as part of the cost
 of the asset/project. All the other borrowing costs are treated as
 period cost and charged to Profit and Loss account in the year in which
 they are incurred.
 
 K. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS
 
 A provision is recognized when:
 
 - The Company has a present obligation as a result of a past event;
 
 - It is probable that an outflow of resources embodying economic
 benefits will be required to settle the obligation; 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 not,
 require an outflow of resources. Where there is a possible obligation
 or a present obligation and the likelihood of outflow of resources is
 remote, no provision or disclosure is made.
 
 Contingent Assets are neither recognized nor disclosed.
 
 L. EMPLOYEE STOCK COMPENSATION COST
 
 In respect of the stock options granted by the Company, the intrinsic
 value of the options (excess of market price over the exercise price)
 of the shares is treated as employee compensation cost and is amortised
 over the vesting period, in accordance with Guidelines issued by SEBI
 in this regard.
 
 M. 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 weighted
 average number of equity shares outstanding during the period.
 
 For the purpose of calculating diluted earnings per share, the net
 profit or loss for the period attributable to equity shareholders and
 weighted average number of equity shares outstanding during the period,
 are adjusted for the effects of all dilutive potential equity shares.