1 BASIS OF ACCOUNTING:
 
 The financial statements are prepared under the historical cost
 convention on accrual basis in accordance with the generally accepted
 accounting principles and accounting standards issued by The Insti-
 tute of Chartered Accountants of India and the provisions of the
 companies act –1956.
 
 2 REVENUE RECOGNITION:
 
 Revenue from property development activity is recognized based on
 percentage of completion method, determine by applying the cost plus
 contracts in which contractor is reimbursed for allowable or defined
 cost plus percentage of these cost or a fixed fee. The development work
 done on behalf of the owner is directly debited to the owner and
 development charges are credited as contract receipts to profit and
 loss account. No charges are receivable during the year in respect of
 assignment where no work has been done during the year.
 
 3 FIXED ASSETS AND DEPRECIAION:
 
 Fixed Assets are stated at cost less depreciation. Depreciation is
 provided under Straight Line Method and at the rates specified in
 Schedule IVX of the Companies Act-1956.
 
 4 INVESTMENTS:
 
 Investments are stated at cost.
 
 5 TAX ON INCOME:
 
 Current tax is the amount of tax payable on the taxable for the year as
 determined in accordance with the provision of income tax act 1961.
 Deferred tax is recognized, on timing differences, being the difference
 between taxable incomes and accounting income that originate in one
 period and are capable of reversal in one or more subsequent periods.
 Deferred Tax Assets in respect of unabsorbed depreciation and carried
 forward of losses are recognized if, in the opinion of the management,
 there is virtual certainty that there will be sufficient future income
 available to realize such losses.
 
 6 DEFERRED REVENUE EXPENDITURE:
 
 Preliminary and public issue expenses are amortized over a period of
 ten year.
 
 7 INVENTORY VALUATION:
 
 There is no stock of building materials at the end of the year under
 review.
 
 8 BORROWING COST:
 
 Interest and other borrowing costs on specific borrowings, attributable
 to qualifying assets, are capitalized as part of cost of assets all
 other borrowing costs are charged to revenue.