1.  BASIS OF PREPARATION OF FINANCIAL STATEMENT
 
 (A) Basis of Accounting
 
 The financial statements have been prepared and presented under the
 historical cost convention on accrual basis of accounting to comply
 with the accounting standards prescribed in the Companies (Accounting
 standards) Rules, 2006 and with the relevant provisions of the
 Companies Act, 1956.
 
 (B) Use of Estimates
 
 The preparation of financial statements in conformity with Generally
 Accepted Accounting Principles (G.A.A.R) in India requires management
 to make estimates and assumptions that affect the reported amounts of
 assets and liabilities and the disclosures of contingent liabilities on
 the date of financial statements.
 
 2.  REVENUE RECOGNITION
 
 (A) Manufacturing Division
 
 i) Sales are exclusive of duties and taxes and after adjustment for
 liquidated damages.  ii) Sales and Services are accounted on dispatch
 of goods and services rendered to customers on accrual basis.
 
 (B) Realty Division
 
 i) Sales of flats representing Book Value of Ghatkopar Project in
 Schedule 5 are accounted on transfer of significant risk and rewards to
 the buyer.
 
 ii) Project at Ghatkopar Property Building No. 4:
 
 The Company is following the Percentage of Completion Method of
 accounting. As per this method, revenue from sale of properties is
 recognized in Profit and Loss Account in proportion to the actual cost
 incurred as against the total estimated cost of project under execution
 with the Company on such portion of the property where there is a
 transfer of significant risk and rewards to the buyer.
 
 iii) Skyline Riverside Project (Karjat):
 
 The Company is following the Percentage of Completion Method of
 accounting. As per this method, revenue from sale of properties is
 recognized in Profit and Loss Account in proportion to the actual cost
 incurred as against the total estimated cost of project under execution
 with the Company on such portion of the property where there is a
 transfer of significant risk and rewards to the buyer. If the actual
 project cost incurred is less than 20% of the total estimated project
 cost, no income is recognized in respect of that project in the
 relevant period.
 
 (C) Other Income
 
 i) Interest income is accounted on accrual basis.
 
 ii) Dividend Income is accounted for when the right to receive income
 is established.
 
 3.  FIXED ASSETS & DEPRECIATION
 
 i) Fixed assets are stated at cost less accumulated depreciation. Cost
 includes all expenses related to the acquisition and installation of
 fixed assets.
 
 ii) Depreciation has been provided on straight line method at the rates
 specified in Schedule XIV of the Companies Act, 1956.  
 
 iii) Assets of individual value upto Rs. 5,000/- at 100%
 
 4.  IMPAIRMENT OF ASSET
 
 The Company reviews the carrying values of tangible and intangible
 assets for any possible impairment at each balance sheet date. An
 impairment loss is recognized when the carrying amount of an asset
 exceeds its recoverable amount. In assessing the recoverable amount,
 the estimated future cash flows are discounted to their present value
 based on appropriate discount rates.
 
 5.  INVESTMENTS
 
 Long term Investments are carried at cost. Provision for diminution in
 the value of long-term investments is made only if such a decline is
 other than temporary in the opinion of the management Current
 investments are carried at lower of cost and fair value. The comparison
 of cost and fair value is done separately in respect of each category
 of investments.
 
 6.  INVENTORIES Manufacturing Division:
 
 i) Raw Materials, Components, Stores and Spare Parts are valued at
 lower of cost and net realizable value.
 
 Work-in-Process of the Construction Machinery is valued at estimated
 cost.  ii) Finished Goods are valued at lower of cost and market value.
 
 7.  EMPLOYEES'' BENEFITS
 
 i) The Company''s contribution to Provident Fund and ESIC are charged to
 the profit and loss account.
 
 ii) Liability for Payment of gratuity and superannuation to employees
 is covered through the Croup Gratuity and superannuation Schemes of
 Life Insurance Corporation of India. Gratuity is accounted on the basis
 of the premium paid to Life Insurance Corporation of India under the
 Croup Gratuity Scheme.
 
 iii) Provision for Leave Encashment is determined on basis of actuarial
 valuation.
 
 8.  FOREIGN EXCHANGE TRANSACTIONS
 
 Transactions in foreign currency are recorded at the exchange rate
 prevailing on the date of the transaction. Exchange differences arising
 on foreign currency transactions settled during the year are recognized
 in the Profit and Loss Account of the year.
 
 Monetary assets and liabilities denominated in foreign currencies,
 which are outstanding as at the year end are translated at the closing
 exchange rate and the resultant exchange differences are recognized in
 the Profit and Loss Account.
 
 9.  TAXATION
 
 Income tax comprises current tax and deferred tax. Provisions at full
 rate for income tax are made in accordance with the Income Tax Act,
 1961.
 
 Deferred tax assets and liabilities are recognized for the future tax
 consequences of timing differences, subject to the consideration of
 prudence. Deferred tax assets are recognized only to the extent that
 there is reasonable certainty that sufficient future taxable income
 will be available against which such deferred tax assets can be
 realized.
 
 Deferred tax assets and liabilities are measured using the tax rates
 enacted or substantively enacted at the Balance Sheet date.
 
 10. EARNINGS PER SHARE
 
 Basic earning per share [EPS] are calculated by dividing the net profit
 or loss for the period attributable to equity shareholders by the
 weighted average number of equity shares out standing during the
 period.  For the purpose of calculating diluted EPS the net profit or
 loss for the period attributable to equity shareholders and the
 weighted average number of equity shares outstanding during the period
 are adjusted for the effects of all dilutive potential equity shares.
 
 11. BORROWING COST
 
 Borrowing costs that are directly attributable to long term projects /
 development activities are treated as part of the respective project
 cost and added to the stock in trade upto the date when such projects /
 development activities are completed. Other borrowing costs are charged
 as an expense in the year in which they are incurred.
 
 12. CONTINGENCIES/PROVISIONS
 
 The Company creates a provision when there exists a present obligation
 as a result of a past event that probably requires an outflow of
 resources and a reliable estimate can be made 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 . When there is a possible obligation
 or a present obligation in respect of which likelihood of outflow or
 resources is remote, no provision or disclosure is made.