1 Basis of Accounting:
 
 The financial statements are prepared under the historical cost
 convention and on an accrual basis.
 
 2 Fixed Assets:
 
 Fixed assets are stated at cost of acquisition including expenses
 related to acquisition and installation less accumulated depreciation.
 
 3 Depreciation:
 
 Depreciation of fixed assets is provided on written down value method
 under section 205(2)(a) of the Companies Act, 1956 as per the rates
 prescribed in schedule XIV.
 
 4 Inventories:
 
 Various items of inventories are valued as under
 
 a) Building Material :
 
 It is not separately taken and valued. It is treated as part of project
 cost on purchase of it for a particular project, Project WIP is
 accordingly valued.
 
 b) Work in Progress, in respect of construction activity:
 
 Work In Progress in respect of tenament of Flat/Shops booked valued at
 proportionate sale value. Work In Progress in respect of unsold
 Flat/Shops is taken at cost or net realisable value which ever is less.
 
 c) Estate Dealing / Development Activity :
 
 At cost including attributable development expenses or net realisable
 value, whichever is lower.
 
 d) TDR:
 
 i) Self generated TDR is valued at stipulated percentage of cost of
 area in respect of which TDR is generated.  
 
 ii) TDR purchased is valued at cost or net realizable value whichever
 is lower.
 
 5 Investments:
 
 Investments are stated at cost.
 
 6 Retirement Benefits:
 
 The Provision for Gratuity liability and Leave encashment is made on
 the basis of acturial valuation, as required by AS-15 (Revised)
 
 7 Revenue Recognition:
 
 a) In respects of Construction Activity :
 
 i)The Company follows the percentage of completion method of accounting
 to recognise revenue in respect of civil construction projects of real
 estate. The revenue is recognized on completion of project above
 stipulated percentage.
 
 ii)As the long-term projects necessarily extend beyond one year,
 revisions in cost estimated during the course of construction project
 are reflected in accounting period in which the facts requiring the
 revision become know. Incomplete project are carried as construction
 work in process.
 
 iii)Determination of revenue under percentage of completion method
 necessarily involved making estimate by the Company like additional
 cost to complete the project, percentage of completion which is being a
 technical in nature.The auditors have relied upon such estimates.
 
 b) In respect of estate dealing / development activity :
 
 i)The company recognizes income from estate dealing and development
 activity on fulfilling its all obligations in a substantial manner, as
 per the terms of contract and execution of agreement in writing, Costs
 are accumulated and charged to the property and the payments received
 from customers are shown as Advances Received as liability till such an
 event.
 
 ii) In order to arrive at cost of unsold stock or profit on sales in
 respect of Estate Dealing/ development Activity, it may be necessary to
 consider certain estimated balance costs of comDletion on the basis of
 technical estimates.
 
 c) Profit/Loss from Partnership firm:
 
 Share of Profit / Loss from partnership firm is accounted in respect of
 the financial year of the firm, ending on or before the balance sheet
 date.on the basis of their audited/unaudited accounts, as the case may
 be.
 
 d) Others:
 
 Other Revenues/Incomes are generally accounted on accrual basis as and
 when they earned.
 
 8 Advances & Sales :
 
 Advances received from customers against booking of flats/shops/plots
 are disclosed in the financial statement as a liability. These advances
 are adjusted against sales consideration receivable at the time of
 conclusion of transaction i.e. execution of saledeeds.
 
 Similarly, Advances given for purchase of flats/shops/land etc. are
 treated as assets i.e. receivable. These are transferred to Purchase
 Account on conclusion of transaction in case of estate dealing /
 development activity.
 
 9 Brokerage :
 
 Brokerage on estate/land dealing activity is accounted for as an
 expenses for the year and not allocated to each estate/ land
 separately.
 
 10 Borrowing Costs:
 
 Borrowing cost which is directly attributable to construction project /
 assets is allocated to the respective project/assets. Other borrowing
 costs are recognized as an expense in the period in which it is
 incurred.
 
 11 Taxation :
 
 Provision for current tax is based on amount of tax payable in respect
 of taxable income for the year. The deferred tax for timing difference
 between book profit & tax profit for the year is accounted for, using,
 the tax rates and laws that have been substantially enacted as of the
 balance sheet date.
 
 Deferred tax assets arising from timing difference are recognised to
 the extent there is reasonable certainty that these would be realised
 in future.
 
 12 Other Accounting Policies :
 
 The accounting policies not specifically referred to herein above are
 consistent and in consonance with generally accepted accounting
 principles.