1.  GENERAL
 
 The accounts of the company are prepared under the historical cost
 convention using accrual method of accounting with generally accepted
 accounting principles.
 
 2.  FIXED ASSETS
 
 Fixed assets are stated at cost of acquisition, including any
 attributable cost for bringing the assets to its working condition for
 its intended use/sale/development, less accumulated depreciation.
 
 3.  DEPRECIATION
 
 Depreciation is provided on Straight Line Method at the rates given in
 Schedule XIV of the Companies Act, 1956.
 
 4.  INVESTMENTS
 
 Investments are valued at cost.
 
 5.  INVENTORIES
 
 Inventory representing project work-in-progress is valued at cost,
 which includes expenditure incurred for development, other related cost
 and cost of land. Other inventories in the nature of unsold flats and
 textile goods are valued at Cost.
 
 6.  SALES & REVENUE RECOGNISATION
 
 I. Sales/ Other income are net of cancellation of sale and amount
 payable to the developer and taxes, if any.
 
 ii. The Company is engaged in the Business of textiles and development
 of property. In consonance with the practice followed, the sales/
 revenue is being recognised on substantial completion and/or sale of
 the property / unit in respect of business of development of property.
 
 iii. All expenses incurred, including interest and selling &
 distribution expenses, on project is shown under Work-in-progress and
 amount received from Customer towards booking of the area is shown in
 Project Advances in respect of properties under construction.
 
 7.  FOREIGN CURRENCY TRANSACTION
 
 Transactions in Foreign Exchange are accounted at the exchange rate
 prevailing on the date the transaction has taken place.
 
 8 RETIREMENT BENEFITS
 
 The Company shall provide for the Retirement Benefits for the
 employees, as and when it is due.
 
 9 CONSTRUCTION ACTIVITIES
 
 Construction cost incurred in respect of Project under construction at
 Sewri and Kurla are considered as W.I.P and shown as Current Assets
 under inventories. The amount received as sale of units in respect of
 properties under construction are considered as Project Advances
 reduced to the extent it is paid/payable to the developer.
 
 10.  TAXATION
 
 Tax comprises both current and deferred tax. Current Income Tax is
 determined on the basis of tax payable on taxable income for the year.
 In compliance with Accounting Standard-22, deferred tax is calculated
 at current income tax rate and is recognized on timing difference
 between taxable income and accounting income subject to consideration
 of prudence and to the extent there is a virtual certainty.