1.1 METHOD OF ACCOUNTING:
 
 The company maintains its accounts on accrual basis. The financial
 statements are prepared under the historical cost conversion and on the
 accounting principles of a going concern.
 
 1.2 FXED ASSETS:
 
 Fixed Assets are stated at cost less depreciation.
 
 1.3 DEPRECIATION:
 
 Depreciation of fixed assets put to use have been provided for on the
 WDV method at the rates as specified by schedule XIV of the Companies
 Act,1956.
 
 1.4 INVESTMENTS:
 
 All investments are considered as long term investments and are stated
 at cost.
 
 1.5 INVENTORY VALUATION:
 
 i) Raw materials and stores are valued at lower of cost or net
 realisable value.
 
 ii) Property development projects in progress are valued at lower of
 cost and net realisable value (taking into consideration the estimate
 cost to complete)
 
 iii) Land (stock in trade) is valued at the lower of cost and net
 realizable value.
 
 1.6 REVENUE RECOGNITION:
 
 i) The company follows the mercantile system of accounting and
 recognizes
 
 Income and expenditure on accrual basis.
 
 ii) Turnover on property development projects:
 
 The company follows the percentage of completion method.
 
 1.7 RETIRMENT BENEFITS:
 
 a) Contribution to provident fund is made on actual liability and
 accounted for on accrual basis. No provision has been made for the
 retirement benefits of the employees.
 
 b) Provisions of payment of Gratuity Act applies to the company. Even
 though there are employees who have put in qualifying service to be
 eligible for Gratuity, provision against liability was not made in the
 accounts.
 
 c) Provisions of payment of Bonus Act are applicable to the company.
 Hence as per the Act, Bonus @ of 8.33% amount of Rs.2,37,001/- and the
 same was not provided in the accounts.
 
 1.8 DIVIDENDS:
 
 No dividend has been recommended by the board.