a.  Basis of preparation of financial statements
 
 The financial statements are prepared under historical cost convention,
 in accordance with the Accounting Principles Generally Accepted in
 India (Indian GAAP) and the provisions of Companies Act, 1956.
 
 b.  Use of estimates
 
 The preparation of financial statements in conformity with the
 Generally Accepted Accounting Principles requires management to make
 estimates and assumptions that affect the reported amounts of assets
 and liabilities and the disclosure of contingent liabilities on the
 date of the financial statements. Actual results could differ from
 those estimates. Any revision to accounting estimates is recognized
 prospectively in current and future periods.
 
 c.  Fixed assets
 
 Fixed assets are stated at historical cost less accumulated
 depreciation. Cost includes purchase price and all other attributable
 cost to bring the assets to its working condition forthe intended use.
 
 d.  Depreciation
 
 Depreciation on fixed assets is provided on written down value method
 in the manner and rates prescribed in Schedule XIV to the Companies
 Act, 1956 except in the case of steel shuttering and scaffolding
 material, which is treated as part of plant and machinery where the
 estimated useful life based on technical evaluation has been determined
 as five years.
 
 Cost of building constructed on land owned by third party under ''Build
 Own Transfer'' agreement is amortized over the period of the agreement.
 
 e.  Intangible assets
 
 Intangible assets comprising of ERP & other computer software''s are
 stated at cost of acquisition less accumulated amortization and are
 amortised over a period of four years on straight line method.
 
 f.  Borrowing costs
 
 Borrowing cost that are directly attributable to the acquisition or
 construction of a qualifying asset (including real estate projects) are
 considered as part of the cost of the asset/project. All other
 borrowing costs are treated as period cost and charged to the profit
 and loss account in the year in which incurred.
 
 g.  Impairment of assets
 
 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 asset. If
 such recoverable amount of the asset or the recoverable amount of the
 cash- generating unit to which the asset belongs 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.
 
 h.  Investments
 
 Long-term investments are stated at cost. Provision for diminution, if
 any, in the value of each long-term investment is made to recognize a
 decline, other than of a temporary nature.
 
 Current investments are stated at lower of cost or market value.
 
 i.  Inventories
 
 i. Building material and consumable stores are valued at cost, which is
 determined on the basis of the ''First in First out''method.
 
 ii. Land is valued at cost, which is determined on average method. Cost
 includes cost of acquisition and all related costs.
 
 iii. Construction work in progress is valued at cost. Cost includes
 cost of material, services and other related overheads related to
 project under construction.
 
 iv. Completed real estate project for sale and trading stock are valued
 at lower of cost or net realizable value.  Cost includes cost of
 materials, services and other related overheads.
 
 j.  Projects in progress
 
 Projects in progress are valued at cost. Cost includes cost of land,
 materials, construction, services, borrowing costs and other overheads
 relating to projects.
 
 k.  Revenue recognition
 
 i.  Real estate projects
 
 Revenue from real estate projects is recognized on the ''Percentage of
 Completion method'' (POC) of accounting.
 
 Revenues under the POC method is recognized on the basis of percentage
 of actual costs incurred, including land, construction and development
 cost of projects under execution subject, to such actual cost being 30
 percent or more of the total estimated cost of projects.
 
 The stage of completion under the POC method is measured on the basis
 of percentage that actual costs incurred on real estate projects
 including land, construction and development cost bears to the total
 estimated cost of the project. The estimates of the projected revenues,
 projected profits, projected costs,
 
 cost to completion and the foreseeable loss are reviewed periodically
 by the management and any effect of changes in estimates is recognized
 in the period such changes are determined.
 
 ii. Interest due on delayed payments by customers is accounted on
 receipts basis due to uncertainty of recovery of the same.
 
 iii.  Income from construction contracts
 
 Revenue from construction contracts is recognized on the ''Percentage of
 Completion method'' of accounting.
 
 Income from construction contracts is recognized by reference to the
 stage of completion of the contract activity as certified by the
 client.
 
 Revenue on account of contract variations, claims and incentives are
 recognized upon determination or settlement of the contract.
 
 iv.  Income from trading sales
 
 Revenue from trading activities is accounted for on accrual basis.
 
 v. Dividend income is recognized when the right to receive the payment
 is established.
 
 I.  Foreign currency transactions
 
 i. Foreign currency transactions are recorded at exchange rates
 prevailing on the date of respective transactions.
 
 ii. Current assets and current liabilities in foreign currencies
 existing at balance sheet date are translated at year-end rates.
 
 iii. Foreign currency translation differences related to acquisition of
 imported fixed assets are adjusted in the carrying amount of the
 related fixed assets. All other foreign currency gains and losses are
 recognized in the profit and loss account.
 
 iv. Foreign Exchange difference arising as a monetary item that, in
 substance, form part of company''s net investment is a non-integral
 foreign operation and is accumulated in a Foreign Currency Translation
 Reserve in the financial statement until the disposal of net investment
 at which time it is recognized as income or expenses.
 
 m.  Accounting for taxes on income
 
 i. Provision for current tax is made based on the tax payable under the
 Income Tax Act, 1 961.
 
 ii. Deferred tax on timing differences between taxable and accounting
 income is accounted for, using the tax rates and the tax laws enacted
 or substantially enacted as on the balance sheet date. Deferred tax
 assets are recognized only when there is a reasonable certainty of
 their realization. Wherever there are unabsorbed depreciation or carry
 forward losses under Tax laws, Deferred tax assets are recognized only
 to the extent that there is a virtual certainty of their realization.
 
 n.  Retirement benefits
 
 i. Contributions payable by the Company to the concerned government
 authorities in respect of provident fund, family pension fund and
 employee state insurance are charged to the profit and loss account.
 
 ii. The Company is having Group Gratuity Scheme with Life Insurance
 Corporation of India. Provision for gratuity is made based on actuarial
 valuation in accordance with Revised AS-1 5.
 
 iii. Provision for leave encashment in respect of unavailed leave
 standing to the credit of employees is made on actuarial basis in
 accordance with revised AS-1 5.
 
 o.  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 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.
 
 p.  Operating lease
 
 Lease arrangements where the risk and rewards incident to ownership of
 an assets substantially vest with the lessor are recognized as
 operating lease. Lease rent under operating lease are charged to profit
 and loss account on a straight line basis over the lease term.
 
 q.  Employee stock compensation cost
 
 In respect of stock options granted by the Company, the intrinsic value
 of the options (excess of market price of the shares over the exercise
 price of the option) is treated as employee compensation cost and is
 amortised over the vesting period.
 
 r.  Share issue expenses
 
 Share issue expenses are adjusted against the securities premium
 account.