1.   Basis of Accounting :
 
 The financial statements have been prepared to comply in all material
 respects with the Accounting Standards notified by Companies
 (Accounting Standards) Rules, 2006, (as amended) and the relevant
 provisions of the Companies Act, 1956. The financial statements have
 been prepared under the historical cost convention on an accrual basis.
 
 Use of Estimates :
 
 The preparation of financial statements in conformity with generally
 accepted accounting principles requires management to make estimates
 and assumptions that affect the reported amounts of assets and
 liabilities and disclosure of contingent liabilities at the date of the
 financial statements and the results of operations during the reporting
 period.Although these estimates are based upon management''s best
 knowledge of current events and actions, actual results could differ
 from these estimates.
 
 2.  Accounting for Construction Division :
 
 Revenue from sale of properties under construction is recognized on the
 basis of actual bookings done (provided the significant risk and
 rewards have been transferred to the buyer and there is reasonable
 certainty of realization of proceeds) proportionate to the percentage
 of physical completion of construction / development work certified by
 the Architect.
 
 3.  Revenue Recognition :
 
 a) Revenue is recognized when the substantial risks and rewards of
 ownership is transferred to the buyer on dispatch of goods.
 
 b) Interest income is recognized on time proportionate basis.
 
 c) Dividend income from investments is recognized when the right to
 receive the dividend is established.
 
 d) Claims and damages are accounted as and when they are finalized.
 
 4.  Fixed Assets :
 
 All Fixed assets are stated at cost of acquisition less accumulated
 depreciation and impairment losses if any.  The cost of fixed assets
 includes taxes and duties (other than those subsequently recoverable
 from respective authorities), freight and other incidental expenses
 related to acquisition and installation of respective assets.
 
 5.  Depreciation:
 
 a.  Depreciation on Fixed Assets is provided on Straight Line Method
 based on the useful life of the assets estimated by the management
 which is as per the rate prescribed in Schedule XIV of the Companies
 Act, 1956.
 
 b.  Depreciation on addition / deletion is provided pro-rata basis with
 reference to the date of addition / deletion as the case may be.
 
 c Individual assets acquired for less than Rs. 5000/- are depreciated
 fully in the year of acquisition.
 
 6.  Impairment of Assets :
 
 a.  The carrying amounts of assets are reviewed by the management at
 each balance sheet date if there is any indication of impairment based
 on internal / external factors. An impairment loss is recognized
 wherever the carrying amount of assets exceeds its recoverable amount.
 The recoverable amount is greater of asset''s net selling price and
 value in use. In assessing value in use, the estimated future cash
 flows are discounted to there present value at the weighted average
 cost of capital.
 
 b. After impairment, depreciation is provided on the revised carrying
 amount of the asset over its remaining useful life. A previously
 recognized impairment loss is increased or reversed depending upon
 changes in circumstances. However the carrying value after reversal is
 not increased beyond the carrying value that would have prevailed by
 charging usual depreciation if there was no impairment.
 
 7.  Excise Duty :
 
 Excise duty, if applicable, has been accounted on the basis of payment
 made in respect of finished goods cleared. No provision is made for the
 finished good lying in bonded warehouse.
 
 8.  Foreign Currency Transactions :
 
 Foreign currency transactions are recorded in the reporting currency,
 by applying to the foreign currency amount the exchange rate between
 the reporting currency and the foreign currency at the date of the
 transaction.
 
 The gain or loss arising out of settlement / translation of the assets
 and the liabilities at the closing rates due to exchange fluctuations
 is recognized as income / expenditure in the profit and loss account.
 
 9.  Investments :
 
 Investments that are readily realizable and intended to be held for not
 more than a year are classified as current investments. All other
 investments are classified as long-term investments.
 
 Current investments are carried at lower of cost and fair value
 determined on an individual investment basis.  Long-term investments
 are carried at cost. However, provision for diminution in value is made
 to recognize a decline other than temporary in the value of the
 investments.
 
 10.  Valuation of Inventories :
 
 a.  Raw Material and Stores & Spares are valued at cost ( on first
 in first out basis ) or market value whichever is lower.
 
 b.  Stocks in transit are valued at cost or market value whichever is
 lower.
 
 c.  Finished goods are valued at cost or net realizable value,
 whichever is lower.
 
 11.  Employee''s Benefits :
 
 Long Term Employee Benefits :
 
 a.  Defined Contribution Plan :
 
 The company has Defined Contribution plans for post employment benefits
 namely Provident Fund.  Under the provident Fund Plan, the company
 contributes to a Government administered provident fund on behalf of
 its employees.
 
 The Company''s contributions to the above funds are charged to revenue
 every year.
 
 b.  Defined Benefit Plans :
 
 The Company''s liabilities towards gratuity and leave encashment are
 determined using the projected unit credit method as at the balance
 sheet date. Actuarial gains / losses are recognized immediately in the
 profit and loss account. Long term compensated absences are provided
 for based on actuarial valuations.
 
 12.  Borrowing Cost :
 
 Borrowing costs directly attributable to the acquisition, construction
 or production of an asset that necessarily takes a substantial period
 of time to get ready for its intended use or sale are capitalized as
 part of the cost of the respective asset. All other borrowing costs are
 expensed in the period they occur. Borrowing costs consist of interest
 and other costs that an entity incurs in connection with the borrowing
 of funds.
 
 13.  Segment Reporting :
 
 The accounting policies adopted for segment reporting are in line with
 the accounting policies of the company. Segment assets include all
 operating assets used by the business segments and consist principally
 of fixed assets, debtors and inventories. Segment liabilities include
 the operating liabilities that result from the operating activities of
 the business. Segment assets and liabilities that cannot be allocated
 between the segments are shown as part of unallocated assets and
 liabilities respectively. Income / Expenses relating to the enterprise
 as a whole and not allocable on a reasonable basis to business segments
 are reflected as unallocated income / expenses.
 
 14.  Earning per Share (EPS) :
 
 Basic earnings per share are calculated by dividing the net profit or
 loss for the year attributable to equity shareholders (after deducting
 attributable taxes) by the weighted average number of equity shares
 outstanding during the year.
 
 15.  Provision for Current and Deferred Tax :
 
 a.  Provision for the current tax is made after taking into considering
 benefits admissible under the provisions of the Income Tax Act, 1961.
 
 b.  Deferred Tax charge or credit reflects the tax effects of timing
 differences between accounting income and taxable income for the
 period. The deferred tax charge or credit and the corresponding
 deferred tax liabilities or assets are recognized using the tax rates
 that have been enacted or substantively enacted by the balance sheet
 date. Deferred tax assets are recognized only to the extent there is
 reasonable certainty that the assets can be realized in future.
 Deferred tax assets are reviewed at each balance sheet date and is
 written down or written up to reflect the amount that is reasonably or
 virtually certain, as the case may be, to be realized.
 
 16.  Provisions :
 
 A provision is recognized when the company has a present obligation as
 a result of past events and it is probable that there will be an
 outflow of resources to settle the obligation, in respect of which a
 reliable estimate can be made. Provisions are not discounted to its
 present value and are determined based on best estimate required to
 settle the obligation at the balance sheet date. These are reviewed at
 each balance sheet date and adjusted to reflect the current best
 estimates.
 
 17.  Contingent Liabilities :
 
 Contingent liabilities, if any are disclosed in the notes on accounts.
 Provision is made in the accounts in respect of those contingencies
 which are likely to materialize into liabilities after the year end
 till the approval of the accounts by the board of directors and which
 have material effect on the position stated in the balance sheet.