1.  NATURE OF OPERATIONS
 
 Unitech Limited (the ''Company'') was incorporated in 1971. The Company''s
 main business is real estate development, construction and consultancy.
 
 2.  BASIS OF PREPARATION
 
 The financial statements have been prepared to comply in all material
 respects with the accounting standards notified by Companies Accounting
 Standards Rules, 2006 and the relevant provisions of the Companies Act,
 1956 (''the Act''). The financial statements have been prepared under
 historical cost convention on an accrual basis in accordance with
 accounting principles generally accepted in India.  The accounting
 policies have been consistently applied by the Company and are
 consistent with those used in the previous year.
 
 3.  USE OF ESTIMATES
 
 The preparation of financial statements in conformity with generally
 accepted accounting principles require the 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 result 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. Significant estimates used by the management in
 the preparation of these financial statements include computation of
 percentage completion for projects in progress, project cost, revenue
 and saleable area, estimates of the economic useful lives of fixed
 assets and provisions for bad and doubtful debts. Any revision to
 accounting estimates is recognized prospectively.
 
 4.  FIXED ASSETS AND DEPRECIATION
 
 a) Fixed Assets are stated at cost (Gross Block) less accumulated
 depreciation and impairment losses, if any. Cost comprises the purchase
 price and any attributable cost of bringing the asset to its working
 condition for its intended use.  Borrowing costs relating to
 acquisition of fixed assets which take substantial period of time to
 get ready for its intended use are also included to the extent they
 relate to the period till such assets are ready to be put to use.
 Depreciation on fixed assets held in India is provided at the rates and
 in the manner prescribed in Schedule XIV of the Companies Act, 1956 on
 straight-line method. In respect of assets held outside India,
 depreciation has been provided in accordance with the laws prevailing
 in that country.
 
 b) Fixtures installed in Leased Buildings are amortized over a period
 of lease from the date of capitalization.
 
 5.  IMPAIRMENT OF ASSETS
 
 Management periodically assesses using external and internal sources
 whether there is an indication that an asset may be impaired.
 Impairment occurs where the carrying value exceeds the present value of
 future cash flows expected to arise from the continuing use of the
 asset and its eventual disposal. The impairment loss to be expensed is
 determined as the excess of the carrying amount over the higher of the
 asset''s net sale price or present value as determined above.
 
 6.  LEASE ACCOUNTING
 
 In respect of operating lease, lease rentals are accounted on accrual
 basis in accordance with the respective lease agreements.
 
 7.  INVESTMENTS
 
 Long term investments are stated at cost. However, provision for
 diminution is made to recognise any decline, other than temporary, in
 the value of long term investments.
 
 Current Investments are stated at the lower of cost and fair value.
 
 8.  INVENTORIES
 
 a) Materials, stores & spares, tools and consumable are valued at cost
 or market value, which ever is lower on the basis of first in first out
 method reflecting the fairest possible approximation to the cost
 incurred in bringing the items of inventory to their present location
 and condition.
 
 b) Finished stock of completed real estate projects is valued at lower
 of cost or net realisable value on the basis of actual identified
 units.
 
 c) Scrap is valued at net realisable value.
 
 d) Work in Progress in respect of construction activities is valued at
 estimated cost.
 
 e) Shuttering and tools is valued at amortised cost, spread over a
 period of three year.
 
 9.  PROJECTS IN PROGRESS
 
 Projects in progress are valued at cost. Cost includes cost of land,
 development expenses, materials, construction, services, borrowing
 costs, other overhead relating to projects and advance against projects
 under execution.
 
 10.  BORROWING COST
 
 Borrowing cost relating to acquisition/ construction of qualifying
 assets are capitalized until the time all substantial activities
 necessary to prepare the qualifying assets for their intended use are
 complete. A qualifying asset is one that necessarily takes substantial
 period of time to get ready for its intended use/sale. Borrowing cost
 that are attributable to the projects are charged to the respective
 projects.  All other borrowing costs, not eligible for
 inventorisation/capitalisation, are charged to revenue.
 
 11.  RECOGNITION OF INCOME
 
 a) Real Estate Projects
 
 I.  Real Estate Projects undertaken up to 31st March, 2004.
 
 Revenue is recognized to estimate the profit @ 20% of actual receipts
 and installments fallen due during the year towards booking of plots/
 constructed properties, subject to final adjustment, on the completion
 of the respective project.
 
 II.  Real Estate Projects undertaken on and after 1st April, 2004:
 
 (i) Revenue from real estate projects is recognized on ''Percentage of
 Completion Method'' of accounting. Revenue comprises the aggregate
 amounts of sale price in terms of the agreements entered into and is
 recognized on the basis of percentage of actual costs incurred thereon,
 including proportionate land cost and total estimated cost of projects
 under execution, subject to such actual costs being 20 percent or more
 of the total estimated cost.
 
 (ii) Where aggregate of the payment received provide insufficient
 evidence of buyers'' commitment to make the complete payment, revenue is
 recognized only to the extent of realization.
 
 (iii) The estimates of the saleable areas and costs are reviewed
 periodically by the management and any effect of changes in estimates
 is recognized in the period such changes are determined. However, when
 the total project cost is estimated to exceed total revenues from the
 project, the loss is recognized immediately.
 
 III.  The interest on delayed payment and maintenance charges are
 accounted for on realization due to uncertainty of recovery of the
 same.
 
 IV.  The Sale proceeds of the Investments held in the Subsidiaries,
 Joint Ventures and Associates developing Real Estate Projects are
 included in real estate revenue, net of cost.
 
 b) Revenue from Sale of Land/Land Rights held by the Company itself and
 its wholly owned subsidiaries is recognised under the head as ''Sales
 and Others Receipts'' net of cost.
 
 c) Construction Contracts:
 
 I.  In Construction Contracts income is recognized on percentage of
 completion method.
 
 II.  Revenue on account of contract variations, claims and incentives
 are recognized upon settlement.
 
 d) Dividend Income
 
 Dividend Income is recognized when the right to receive is established.
 
 12. TRANSLATION OF FOREIGN CURRENCY TRANSACTIONS
 
 a) In respect of branch, which is integral foreign operations, all
 transactions are translated at actual rate at the date of transaction.
 Branch monetary assets & liabilities are restated at the year end
 rates.
 
 b) Non-monetary branch items are carried at cost.
 
 c) Any income or expense on account of exchange difference on
 translation is recognized in the Profit & Loss Account.
 
 13.  INTEREST TO/FROM SUBSIDIARY COMPANIES
 
 Interest is charged to/from subsidiary companies (other than wholly
 owned subsidiary companies) at average borrowing cost on the loan
 advanced.  In case of Inter Corporate Deposits to wholly owned
 subsidiaries, interest is charged considering commercial expediency and
 agreed stipulations.
 
 14.  REAL ESTATE, JOB AND CONSTRUCTION EXPENSES
 
 a) The expenses incurred under natural heads of accounts for execution
 of works are charged to job and construction expenses.
 
 b) The maintenance and other expenses which are obligatory and are
 incurred subsequently, after Completion of project(s), are booked as
 expenses under the head Real Estate Completed Projects.
 
 15.  TAXES ON INCOME
 
 a) Provision for tax for the year comprises current Income Tax and
 Deferred Tax and is provided as per the Income Tax Act, 1961.
 
 b) Deferred tax resulting from timing differences between the book and
 the tax profits is accounted for, at the current rate of tax, to the
 extent that the timing differences are expected to crystallize.
 Deferred tax assets are recognized only to the extent there is
 reasonable certainty that the assets can be realized in the future;
 however where there is unabsorbed depreciation or carried forward loss
 under taxation laws, deferred tax assets are recognized only if there
 is a virtual certainty of realization of such assets. Deferred tax
 assets/ liabilities are reviewed as at each balance sheet date.
 
 16.  EMPLOYEE BENEFITS
 
 A.  Short Term Employee Benefits:
 
 All employee benefits payable wholly within twelve months of rendering
 the service are classified as short term employee benefits and they are
 recognized in the period in which the employee renders the related
 service. The Company recognizes the undiscounted amount of short term
 employee benefits expected to be paid in exchange for services rendered
 as a liability (accrued expense) after deducting any amount already
 paid.
 
 B.  Long Term and Post-employment Benefits:
 
 (a) Defined contribution plans
 
 Defined contribution plans are post- employment benefit plans under
 which the company pays fixed contributions into separate entities
 (funds) or to financial institutions or state managed benefit schemes.
 The company''s contribution to defined contribution plans are recognized
 in the Profit and Loss Account in the financial year to which they
 relate.
 
 The company, as detailed hereunder, operates defined contribution plans
 pertaining to Provident Fund Scheme, Employee State Insurance Scheme,
 Government administered Pension Fund Scheme and Superannuation Scheme
 for eligible employees.
 
 (i) Provident Fund Plan:
 
 The Company makes specified monthly contributions towards Employee
 Provident Fund to a Trust administered by the Company. The rate
 notified by the Government is adopted by the Trust. The Company has an
 obligation to make good the shortfall, if any, between the return on
 investments of the Trust and the notified interest rate.
 
 (ii) Employees State Insurance/ Pension Fund Scheme:
 
 The Company makes specified monthly contribution towards Employees
 State Insurance Scheme and Government administrated Pension Fund Scheme
 which are recognized in the Profit and Loss Account in the financial
 year to which they relate.
 
 (iii) Superannuation Insurance Plan:
 
 The Company has taken Group Superannuation Policy with Life Insurance
 Corporation of India for superannuation payable to the eligible
 employees. Contribution towards aforesaid fund is charged to the Profit
 & Loss Account in the financial year to which it relates.
 
 (b) Defined Benefit obligations
 
 Gratuity liability & Long term leave encashment are defined obligations
 and are provided for on the basis of an actuarial valuation on
 projected unit credit method made at the end of each financial year.
 
 17. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS
 
 Provisions are recognized for liabilities that can be measured only by
 using a substantial degree of estimation, if
 
 a) the Company has a present obligation as a result of a past event;
 
 b) a probable outflow of resources is expected to settle the
 obligation; and
 
 c) the amount of the obligation can be reliably estimated.
 
 Reimbursement expected in respect of expenditure required to settle a
 provision is recognized only when it is virtually certain that the
 reimbursement will be received.
 
 Contingent Liability is disclosed in the case of:
 
 a.  a present obligation arising from a past event, when it is not
 probable that an outflow of resources will be required to settle the
 obligation;
 
 b.  a possible obligation, unless the probability of outflow of
 resources is remote.
 
 Contingent Assets are neither recognized nor disclosed.
 
 18. CASH & CASH EQUIVALENT
 
 Cash for the purposes of Cash Flow Statement comprise cash in hand and
 at bank (including deposits) and cash equivalents and the statement is
 prepared on the basis of indirect method.
 
 19. EARNING PER SHARE
 
 Basic earning per share is calculated by dividing the net profit or
 loss for the period attributable to equity shareholders by the weighted
 average number of equity shares outstanding during the period. The
 weighted average number of equity shares outstanding during the period
 are adjusted for events of bonus issue and share warrants conversion.