1.  NATURE OF OPERATION
 
 RTCL Limited (The Company) is mainly engaged in Real Estate including
 renting activities.
 
 2.  SIGNIFICANT ACCOUNTING POLICIES AND NOTES ON ACCOUNTS A.
 SIGNIFICANT ACCOUNTING POLICIES
 
 (a) Basis of Preparation
 
 Financial statements are prepared under the historical cost convention
 in consonance and accordance with applicable accounting standards,
 accepted accounting principles and relevant presentational requirements
 of The Companies Act, 1956. Company follows accrual basis of accounting
 in accordance with the provisions of The companies Act, 1956.
 
 (b) Fixed Assets
 
 Fixed assets are recorded at cost. Cost comprises the purchase price
 and any attributable cost of bringing the asset to its working
 condition for its intended use. Physical verification of the assets is
 carried out once in three years.
 
 (c) Depreciation
 
 Depreciation on Fixed Assets has been provided on written down method
 at rates and method as per Income-tax Rules, 1962. No depreciation is
 charged on fixed assets sold during the year.
 
 (d) Investments
 
 Current investments are valued at the lower of cost and fair value and
 long- term investments are stated at cost in accordance with
 Accounting Standard - 13 on Accounting for Investments issued by the
 Institute of Chartered Accountants of India. Provision for diminution
 in the value of long-term investments is made only if such a decline is
 other than temporary.
 
 (e) Inventories
 
 Inventory of Land and Building and trading goods is valued at lower of
 cost and net realizable value. Cost of Land and Building includes
 acquisition cost of land and cost of super structure built thereupon.
 Cost of trading goods includes acquisition cost, taxes, duties and
 freight. Cost is computed on FIFO basis of costing.
 
 (f) Preliminary Expenses and Share Issue Expenses
 
 Preliminary expenses and Share issue expenses are to be written off in
 ten years in equal installment from the year in which commercial
 production commences.
 
 (g) Retirement Benefits
 
 Gratuity
 
 Provision of Gratuity is created for employees who have completed
 continuous five years'' of services at the rate of 15 days salary for
 every completed year of service based on the salary drawn during the
 last month of the financial year.
 
 Leave Encashment
 
 Unused leave are paid to the employees at the end of year and are not
 accumulated.
 
 Provident Fund
 
 Company''s contribution to provident fund is charged to profit and loss
 account.
 
 (h) Impairment of Assets
 
 If the carrying amount of fixed assets exceeds the recoverable amount
 on the reporting date, the carrying amount is reduced to the
 recoverable amount. The recoverable amount is measured as the higher of
 the net selling price and the value in use determined by the present
 value of estimated future cash flow.
 
 (i) Accounting for Taxes on Income
 
 Provision for current Income tax is made after taking in to
 consideration the benefits admissible under the provisions of the
 Income Tax Act, 1961.
 
 Deferred tax is recognized, on timing differences, being the difference
 between taxable and accounting income that originates in one period and
 are capable of reversal in one or more subsequent periods. Deferred tax
 assets in respect of unabsorbed depreciation and carry forward of
 losses are recognized if there is virtual certainty that there will be
 sufficient future taxable income available to realize such losses.
 
 (j) Foreign Currency Transactions
 
 Initial Recognition
 
 Foreign currency transactions are recorded in the reporting currency,
 by applying the exchange rate between the report- ing currency and the
 foreign currency to the foreign currency amount at the date of the
 transaction.
 
 Conversion
 
 Foreign currency monetary items are reported using the closing rate.
 Gains and losses, if any, at the year-end in respect of monetary assets
 and monetary liabilities not covered by the forward contracts are
 recognized in the profit and loss account.
 
 Exchange Difference
 
 Exchange difference arising on the settlement of monetary items at rate
 different from those at which they were initially recorded during the
 year, are recognized as income or as expense in the year in which they
 arise.
 
 (k) Revenue Recognition
 
 Revenue is recognized to the extent that it is probable that the
 economic benefits will flow to the company and the revenue can be
 reliably measured.
 
 Sale of Goods:
 
 Sales are recognized net of sales tax charged, and rebates/discounts
 allowed to customers.
 
 Sale of Services:
 
 Revenue from services is recognized on completion of services.
 
 Interest:
 
 Interest on fixed deposits is recognized on accrual basis on a time
 proportion basis taking in to account the amount outstanding and the
 rate applicable.
 
 Dividend:
 
 Revenue is recognized when the right to receive the income is
 established.
 
 Sale of Flats:
 
 Sale of flat purchased from other developers is recognized on execution
 of transfer deed in favour of the buyer.
 
 Real Estate Development Project''
 
 Revenue from each Real Estate Development Project is recognized:
 
 (i) On the basis of Percentage Completion Method
 
 (ii) The percentage completion method is applied on a cumulative basis
 in each accounting period to the current esti- mates of contract
 revenue and contract costs
 
 (iii) When the stage of completion of each project reaches a
 significant level, which is estimated to be at least 25% of the total
 estimated cost of project
 
 (iv) When no significant uncertainty exists regarding the amount of the
 consideration from sale, which is estimated on collection of at least
 25% of sale consideration.
 
 Rent:
 
 Revenue is recognized on an accrual basis in accordance with the terms
 of the relevant agreement.
 
 (l) Use of Estimates
 
 The preparation of financial statements requires estimates and
 assumptions to be made that affect the reported amount of assets and
 liabilities on the date of financial statements and the reported amount
 of revenues and expenses during the reporting period. Difference
 between the actual results and estimates are recognized in the period
 in which the results are known/materialized.
 
 (m) Earnings per Share
 
 The basic earnings per share are computed by dividing the net profit or
 loss attributable the equity shareholders for the period by the
 weighted average number of equity shares outstanding during the
 reporting period. The number of shares used in computing diluted
 earning per share comprises the weighted average number of shares
 considered for deriving basic earning per share and also the weighted
 average number of equity shares, which may be issued on the conversion
 of all dilutive potential shares, unless the results would be anti
 dilutive.