Accounting Policies of Premier Energy and Infrastructure Ltd. Company

Mar 31, 2016

Notes forming part of Standalone Financial Statements for the year ended 31^st March, 2016 Background

Premier Energy and Infrastructure Limited (PEIL) is focused on the Construction, housing development and energy sector.

The following are the subsidiaries:

a) RCI Power Limited - 100%

b) RCI Power AP Limited - 100%

c) EMAS Engineers & Contractors Pvt Ltd - 50.1%

Note 1 : Significant accounting policies a) Basis of preparation of financial statements

The financial statements of the Company have been prepared in accordance with the Indian Generally Accepted Accounting Principles (Indian GAAP) and presented under the historical cost convention on accrual basis. GAAP comprises mandatory accounting standards as prescribed under section 133 of the Companies Act 2013 (“The Act”) read with Rule 7 of the Companies (Accounts) Rules 2014 and the provisions of the act to the extent notified. Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or revision to an existing accounting standard requires a change in the accounting policy hitherto in use. The financial statements are presented in Indian currency rounded off to the nearest Rupee.

b) Use of estimates

The preparation of the financial statements in conformity with GAAP requires the management to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures of contingent liabilities as at the date of the financial statements and reported amounts of revenue and expenses for the year. The key estimates made by the Company in preparing these financial statements comprise provisions for doubtful debts, future obligations under employee retirement benefit plans, income taxes and the useful lives of assets. Actual results could differ from those estimates.

c) Tangible fixed assets

Tangible Fixed Assets are stated at cost less accumulated depreciation and impairment losses ,if any. The cost of an asset comprises its purchase price, duties, taxes, freight and other directly attributable cost incurred to bring the assets to its working condition for the intended use.

d) Depreciation

Depreciation is provided on Straight Line Method over the useful life of the assets as prescribed in Schedule II of the Companies Act, 2013. If the management’s estimate of the useful life of a fixed asset at the time of acquisition of the asset or of the remaining useful life on a subsequent review is shorter than that envisaged in ‘the Act’, depreciation is provided based on the management’s estimate of useful life/ remaining life.

e) Revenue recognition

Revenue from Infrastructure Development is recognised on percentage completion method as per Accounting Standard AS-7 (Revised).

Long Term Contracts are progressively evaluated at the end of each accounting period. On contracts under execution which have reasonably progressed, profit is recognised by evaluation of the percentage of work completed at the end of each accounting period. Whereas, foreseeable losses are fully provided for in the respective accounting period. The percentage of work completed is determined by the expenditure incurred on the job till each review date to total expected expenditure of the job based on technical estimates.

Additional Claims (including for escalation), which in the opinion of the Management are recoverable on the contract, are recognised at the time of evaluating the job.

Dividend Income on Investments is accounted for when the right to receive the payment is established.

Interest on investments/ loans are recognised on time proportion basis taking into account the amounts invested and the rate of interest.

Profit / (Loss) on Sale of Current Investments, being the difference between the contracted rate and the cost (determined on weighted average basis) of the investments is recognised on sale.

Rental income is recognised on straight line basis over the primary period of the arrangement.

f) Investments

Investments which are readily realizable and intended to held for not more than one year from the date on which such investments are made , are classified as current investments .All other investments are classified as long term investments. On initial recognition ,all investments are recognised at cost. The cost comprises purchase price and directly attributable acquisition charges such as brokerage, fees and duties. Current investments are carried in the financial statements at lower of cost and fair value determined on an individual investment basis. Long term investments are carried at cost. However, provision for diminution in values is made to recognise a decline other than temporary in the value of the investments. On disposal of an investment, the difference between its carrying cost and net disposal proceeds is charged or credited to statement of profit and loss.

g) Inventories

Inventories are valued at cost or net realizable value, whichever is lower.

h) Cash and cash equivalents

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term balances (with an original maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

i) Employee benefits

1 Short term employee benefits

All short term employee benefit plans such as salaries, bonus, medical benefits and, leave salary which fall due within 12 months of the period in which the employee renders the related services which entitles him to avail such benefits are recognized on an undiscounted basis and charged to the Statement of profit and loss.

2 Defined contribution plan - Provident Fund

The Company had only 9 employees during the reporting period. Due to number of employees being lesser than threshold limit required under the provisions of Employees Provident Fund and Miscellaneous Provisions Act,1952.Hence Employer and employee contribution towards Provident fund is not made.

3 Defined benefit plan - Gratuity

Employees in India are entitled to benefits under the Payment of Gratuity Act, 1972, a defined benefit retirement plan covering eligible employees of the Company. The Plan provides a lump-sum payment to eligible employees at retirement or on termination of employment. The gratuity benefit conferred by the Company on its employees is equal to or greater than the statutory minimum. The year-end gratuity liability is determined based on actuarial valuation performed by an independent actuary using the Projected Unit Credit Method.

4 Leave encashment:

Liability in respect of leave encashment becoming due to the employees is recognised on the basis of actuarial valuation performed by an independent actuary using the Projected Unit Credit Method.

j) Income taxes:

1 Income tax

Provision for current income tax is made based on the estimated tax liability in accordance with the relevant tax rates and tax laws. Current income tax is payable on taxable profits, which differ from profit or loss in the financial statements. Current income tax is computed based on tax rates and tax laws that have been enacted or substantively enacted by the end of the reporting period.

2 Deferred tax

Deferred income taxes reflect the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years. Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date. 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. Unrecognized deferred tax assets of earlier years are re-assessed and recognized to the extent that it has become reasonably certain that future taxable income will be available against which such deferred tax assets can be realized.

3 Minimum alternate tax

Minimum Alternate Tax (MAT) Credit is recognized as an asset only when and to the extent there is convincing evidence that the Company will pay Normal Income tax during the specified period. In the year in which the MAT Credit becomes eligible to be recognized as an asset in accordance with the recommendation contained in the Guidance Note issued by the Institute of Chartered Accountants of India if it is recognized, by way of credit to the Statement of Profit and Loss and shown as MAT Credit Entitlement. The Company reviews the same at each Balance Sheet Date and writes down the Carrying amount of MAT Credit Entitlement to the extent there is no longer convincing evidence to the effect that Company will pay normal income tax during the specified period.

k) Borrowing cost

Borrowing costs are recognised in the financial statements in accordance with the Accounting Standard -16 as prescribed under section 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014 .Borrowing cost includes interest. Such costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of the respective asset. All other borrowing costs are expensed in the period they occur.

l) Earnings per share

Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting preference dividends and attributable taxes) by the weighted average number of equity shares outstanding during the period. The weighted average number of equity shares outstanding during the period is adjusted for events including a bonus issue, bonus element in a rights issue to existing shareholders, share split and reverse share split (consolidation of shares). For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares. In determining Earnings per Share, the Company considers the net profit after tax and includes the post-tax effect of any extra-ordinary / exceptional item. The number of shares used in computing basic earnings per share is the weighted average number of shares outstanding during the period.

m) Provision and contingencies

The Company creates a provision when there is present obligation as a result of past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made. Contingent assets are neither recognized nor disclosed in the financial statements.

n) Impairment of assets

The Company assesses at each balance sheet date whether there is any indication that an asset may be impaired. If any such indication exists, the Company estimates the recoverable amount of the asset. Recoverable amount is the higher of the asset’s net selling price and its value in use. Value in use is the present value of estimated future cash flows expected to arise from the continuing use of an asset and from its disposal at the end of its useful life. If such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognised in the Statement of profit and loss. If at the balance sheet date there is an indication that if a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount subject to a maximum of depreciated historical cost.

o) Leases

Leases where the less or effectively retains substantially all the risks and benefits of ownership of leased term are classified as operating leases. Operating lease payments are recognized as an expense in the Statement of Profit and Loss on a straight-line basis over the term of the lease.

p) Segment reporting

The company carries out business operations only in one business segment viz. infrastructure and hence segmental reporting does not arise.

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Mar 31, 2015

A) Basis of preparation of financial statements

The financial statements of the Company have been prepared in accordance with the Indian Generally Accepted Accounting Principles (Indian GAAP) and presented under the historical cost convention on accrual basis. GAAP comprises mandatory accounting standards as prescribed under section 133 of the Companies Act 2013 ("The Act" ) read with Rule 7 of the Companies (Accounts) Rules 2014 and the provisions of the act to the extent notified. Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or revision to an existing accounting standard requires a change in the accounting policy hitherto in use. The financial statements are presented in Indian currency rounded off to the nearest Rupee.

b) Use of estimates

The preparation of the financial statements in conformity with GAAP requires the management to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures of contingent liabilities as at the date of the financial statements and reported amounts of revenue and expenses for the year. The key estimates made by the Company in preparing these financial statements comprise provisions for doubtful debts, future obligations under employee retirement benefit plans, income taxes and the useful lives of assets. Actual results could differ from those estimates.

c) Tangible fixed assets

Tangible Fixed Assets are stated at cost less accumulated depreciation and impairment losses, if any. The cost of an asset comprises its purchase price, duties, taxes, freight and other directly attributable cost incurred to bring the assets to its working condition for the intended use.

d) Intangible assets

Goodwill on Amalgamation has been fully amortised using Straight line method over a period of 5 years.

e) Depreciation

Depreciation is provided on Straight Line Method over the useful life of the assets as prescribed in Schedule II of the Companies Act, 2013. If the management''s estimate of the useful life of a fixed asset at the time of acquisition of the asset or of the remaining useful life on a subsequent review is shorter than that envisaged in ''the Act'', depreciation is provided based on the management''s estimate of useful life/ remaining life.

f) Revenue recognition

Revenue from Infrastructure Development is recognised on percentage completion method as per Accounting Standard AS-7 (Revised)

Long Term Contracts are progressively evaluated at the end of each accounting period. On contracts under execution which have reasonably progressed, profit is recognised by evaluation of the percentage of work completed at the end of each accounting period. Whereas, foreseeable losses are fully provided for in the respective accounting period. The percentage of work completed is determined by the expenditure incurred on the job till each review date to total expected expenditure of the job based on technical estimates.

Additional Claims (including for escalation), which in the opinion of the Management are recoverable on the contract, are recognised at the time of evaluating the job.

Dividend Income on Investments is accounted for when the right to receive the payment is established.

Interest on short term investments are recognised on time proportion basis taking into account the amounts invested and the rate of interest.

Profit / (Loss) on Sale of Current Investments, being the difference between the contracted rate and the cost (determined on weighted average basis) of the investments is recognised on sale.

Rental income is recognised on straight line basis over the primary period of the arrangement.

g) Investments

Investments which are readily realizable and intended to held for not more than one year from the date on which such investments are made , are classified as current investments .All other investments are classified as long term investments. On initial recognition ,all investments are recognised at cost. The cost comprises purchase price and directly attributable acquisition charges such as brokerage,fees and duties. Current investments are carried in the financial statements at lower of cost and fair value determined on an individual investment basis. Long term investments are carried at cost. However, provision for diminution in values is made to recognise a decline other than temporary in the value of the investments. On disposal of an investment, the difference between its carrying cost and net disposal proceeds is charged or credited to statement of profit and loss.

h) Inventories

Inventories are valued at cost or net realizable value, whichever is lower.

i) Cash and cash equivalents

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term balances (with an original maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

j) Employee benefits

1 Short term employee benefits

All short term employee benefit plans such as salaries, bonus, medical benefits and, leave salary which fall due within 12 months of the period in which the employee renders the related services which entitles him to avail such benefits are recognized on an undiscounted basis and charged to the Statement of profit and loss.

2 Defined contribution plan - Provident Fund

The Company had only 8 employees during the reporting period. Due to number of employees being lesser than threshold limit required under the provisions of Employees Provident Fund and Miscellaneous Provisions Act,1952.Hence Employer and employee contribution towards Provident fund is not made.

3 Defined benefit plan - Gratuity

Employees in India are entitled to benefits under the Payment of Gratuity Act, 1972, a defined benefit retirement plan covering eligible employees of the Company. The Plan provides a lump-sum payment to eligible employees at retirement or on termination of employment. The gratuity benefit conferred by the Company on its employees is equal to or greater than the statutory minimum. The year-end gratuity liability is determined based on actuarial valuation performed by an independent actuary using the Projected Unit Credit Method.

4 Leave encashment:

Liability in respect of leave encashment becoming due to the employees is recognised on the basis of undiscounted value of salary eligible for the unavailed leaves required to be paid to the employees.

The Company presents the entire leave as a current liability in the balance sheet, since it does not have an unconditional right to defer its settlement for twelve months after the reporting date.

k) Income taxes:

1 Income tax

Provision for current income tax is made based on the estimated tax liability in accordance with the relevant tax rates and tax laws. Current income tax is payable on taxable profits, which differ from profit or loss in the financial statements. Current income tax is computed based on tax rates and tax laws that have been enacted or substantively enacted by the end of the reporting period.

2 Deferred tax

Deferred income taxes reflect the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years. Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date. 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. Unrecognized deferred tax assets of earlier years are re-assessed and recognized to the extent that it has become reasonably certain that future taxable income will be available against which such deferred tax assets can be realized.

3 Minimum alternate tax

Minimum Alternate Tax (MAT) Credit is recognized as an asset only when and to the extent there is convincing evidence that the Company will pay Normal Income tax during the specified period. In the year in which the MAT Credit becomes eligible to be recognized as an asset in accordance with the recommendation contained in the Guidance Note issued by the Institute of Chartered Accountants of India if it is recognized, by way of credit to the Statement of Profit and Loss and shown as MAT Credit Entitlement. The Company reviews the same at each Balance Sheet Date and writes down the Carrying amount of MAT Credit Entitlement to the extent there is no longer convincing evidence to the effect that Company will pay normal income tax during the specified period.

l) Borrowing cost

Borrowing costs are recognised in the financial statements in accordance with the Accounting Standard -16 as prescribed under section 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014 Borrowing cost includes interest. Such costs directly attributable to the acquisition,construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of the respective asset. All other borrowing costs are expensed in the period they occur.

m) Earnings per share

Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting preference dividends and attributable taxes) by the weighted average number of equity shares outstanding during the period. The weighted average number of equity shares outstanding during the period is adjusted for events including a bonus issue, bonus element in a rights issue to existing shareholders, share split and reverse share split (consolidation of shares). For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares. In determining Earnings per Share, the Company considers the net profit after tax and includes the post-tax effect of any extra-ordinary / exceptional item. The number of shares used in computing basic earnings per share is the weighted average number of shares outstanding during the period.

n) Provision and contingencies

The Company creates a provision when there is present obligation as a result of past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made. Contingent assets are neither recognized nor disclosed in the financial statements.

o) Impairment of assets

The Company assesses at each balance sheet date whether there is any indication that an asset may be impaired. If any such indication exists, the Company estimates the recoverable amount of the asset. Recoverable amount is the higher of the asset''s net selling price and its value in use. Value in use is the present value of estimated future cash flows expected to arise from the continuing use of an asset and from its disposal at the end of its useful life.

If such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognised in the Statement of profit and loss. If at the balance sheet date there is an indication that if a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount subject to a maximum of depreciated historical cost.

p) Leases

Leases where the lessor effectively retains substantially all the risks and benefits of ownership of leased term are classified as operating leases. Operating lease payments are recognized as an expense in the Statement of Profit and Loss on a straight-line basis over the term of the lease.

q) Segment reporting

The company carries out business operations only in one business segment viz. infrastructure and hence segmental reporting does not arise.

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Jun 30, 2014

A) Basis of preparation of financial statements

The financial statements are prepared in accordance with Generally Accepted Accounting Principles ("GAAP") applicable in India. GAAP comprises mandatory accounting standards prescribed by the Companies {Accounting Standards) Rules, 2006 and the provisions of the Companies Act, 1956. Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use. The management evaluates all recently issued or revised accounting standards on an on-going basis.

b) Use of estimates

The preparation of the financial statements in conformity with GAAP requires the management to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures of contingent liabilities as at the date of the financial statements and reported amounts of revenue and expenses for the year. The key estimates made by the Company in preparing these financial statements comprise provisions for doubtful debts, future obligations under employee retirement benefit plans, income taxes and the useful lives of assets. Actual results could differ from those estimates.

c) Tangible fixed assets

Tangible Fixed Assets are stated at cost less accumulated depreciation and impairment losses ,if any. The cost of an asset comprises its purchase price, duties, taxes, freight and other directly attributable cost incurred to bring the assets to its working condition for the intended use.

d) Intangible assets

Goodwill on Amalgamation has been fully amortised using Straight line method over a period of 5 years.

e) Depreciation

Depreciation on Fixed Assets is provided on Straight Line Method at the rates and in the manner specified in Schedule XIV to the Companies Act, 1956 except for Fixed Assets costing less than Rs 5,000/-, which are fully depreciated in the year of Purchase. Depreciation for assets purchased/sold during a period is proportionately charged. Incremental Depreciation on account of enhancement in value of Fixed Assets due to revaluation is charged against Fixed Assets Revaluation Reserve

f) Revenue recognition

Revenue from Infrastructure Development is recognised on percentage completion method as per Accounting Standard AS-7 (Revised).

Long Term Contracts are progressively evaluated at the end of each accounting period. On contracts under execution which have reasonably progressed, profit is recognised by evaluation of the percentage of work completed at the end of each accounting period. Whereas, foreseeable losses are fuliy provided for in the respective accounting period. The percentage of work completed is determined by the expenditure incurred on the job till each review date to total expected expenditure of the job based on technical estimates.

Additional Claims (including for escalation), which in the opinion of the Management are recoverable on the contract, are recognised at the time of evaluating the job.

Dividend Income on Investments is accounted for when the right to receive the payment is established.

Interest on short term investments are recognised on time proportion basis taking into account the amounts invested and the rate of interest.

Profit / (Loss) on Sale of Current Investments, being the difference between trie contracted rate and the cost (determined on weighted average basis) of the investments is recognised on sale.

Rental income is recognised on straight line basis over the primary period of the arrangement.

g) Investments

Investments which are readily realizable and intended to held for not more than one year from the date on which such investments are made , are classified as current investments .All other investments are classified as long term investments. On initial recognition ,all investments are recognised at cost. The cost comprises purchase price and directly attributable acquisition charges such as brokerage ,fees and dutiesCurrent investments are carried in the financial statements at lower of cost and fair value determined on an individual investment basis. Long term investments are carried at cost. However, provision for diminution in values is made to recognise a decline other than temporary in the value of the investments On disposal of an investment, the difference between its carrying cost and net disposal proceeds is charged or credited to statement of profit and loss.

h) Inventories

Inventories are valued at cost or net realizable value, whichever is lower.

i) Cash and cash equivalents

Cash and cash equivalents consists of cash, balance in bank and Deposits with Bank.

j) Employee benefits

1 Short term employee benefits

All short term employee benefit plans such as salaries, bonus, medical benefits and, leave salary which fall due within 12 months of the period in which the employee renders the related services which entitles him to avail such benefits are recognized on an undiscounted basis and charged to the Statement of profit and loss.

2 Defined contribution plan - Provident Fund

The Company had only 6 employees during the reporting period. Due to number of employees being lesser than threshold limit required under the provisions of Employees Provident Fund and Miscellaneous Provisions Act, 1952. Hence Employer and employee contribution towards Provident fund is not made.

3 Defined benefit plan - Gratuity

Employees in India are entitled to benefits under the Payment of Gratuity Act, 1972, a defined benefit retirement plan covering eligible employees of the Company. The Plan provides a lump-sum payment to eligible employees at retirement or on termination of employment. The gratuity benefit conferred by the Company on its employees is equal to or greater than the statutory minimum. The year-end gratuity liability is determined based on actuarial valuation performed by an independent actuary using the Projected Unit Credit Method.

4 Leave encashment:

Liability in respect of leave encashment becoming due to the employees is recognised on the basis of undiscounted value of salary eligible for the unavailed leaves required to be paid to the employees.

k) Income taxes:

1 income tax

Provision for current income tax is made based on the estimated tax liability in accordance with the relevant tax rates and tax laws. Current income tax is payable on taxable profits, which differ from profit or loss in the financial statements. Current income tax is computed based on tax rates and tax laws that have been enacted or substantively enacted by the end of the reporting period.

2 Deferred tax

Deferred income taxes reflect the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years. Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date. 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. Unrecognized deferred tax assets of earlier years are re-assessed and recognized to the extent that it has become reasonably certain that future taxable income will be available against which such deferred tax assets can be realized.

3 Minimum alternate tax

Minimum Alternate Tax (MAT) Credit is recognized as an asset only when and to the extent there is convincing evidence that the Company will pay Normal Income tax during the specified period. In the year in which the MAT Credit becomes eligible to be recognized as an asset in accordance with the recommendation contained in the Guidance Nole issued by the institute of Chartered Accountants of India if it is recognized, by way of credit to the Statement of Profit and Loss and shown as MAT Credit Entitlement. The Company reviews the same at each Balance Sheet Date and writes down-the Carrying amount of MAT Credit Entitlement to the extent there is no longer convincing evidence to the effect that Company will pay normal income tax during the specified period.

I) Borrowing cost

Borrowing costs are recognised in the financial statements in accordance with the Accounting Standard -16 of Companies (Accounting Standards) Rules, 2006 .Borrowing cost includes interest. Such costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of the respective asset. All other borrowing costs are expensed in the period they occur.

m) Earnings per share

Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting preference dividends and attributable taxes) by the weighted average number of equity shares outstanding during the period. The weighted average number of equity shares outstanding during the period is adjusted for events including a bonus issue, bonus element in a rights issue to existing shareholders, share split and reverse share split (consolidation of shares). For the purpose of calculating diluted earnings per share, the net profit or loss for the period attri butable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares. In determining Earnings per Share, the Company considers the net profit after tax and includes the post-tax effect of any extra-ordinary / exceptional item. The number of shares used in computing basic earnings per share is the weighted average number of shares outstanding during the period.

n) Provision and contingencies

The Company creates a provision when there is present obligation as a result of past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made. Contingent assets are neither , recognized nor disclosed in the financial statements.

o) Impairment of assets

The Company assesses at each balance sheet date whether there is any indication that an asset may be impaired. If any such indication exists, the Company estimates the recoverable amount of the asset. Recoverable amount is the higher of the asset''s net selling price and its value in use. Value in use is the present value of estimated future cash flows expected to arise from the continuing use of an asset and from its disposal at the end of its useful life. If such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognised in the Statement of profit and loss. If at the balance sheet date there is an indication that if a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount subject to a maximum of depreciated historical cost.

p) Leases

Leases where the lessor effectively retains substantially all the risks and benefits of ownership of leased term are classified as operating leases. Operating lease payments are recognized as an expense in the Statement of Profit and Loss on a straight-line basis over the term of the lease.

q) Segment reporting

The company carries out business operations only in one business segment viz. infrastructure and hence segmental reporting does not arise,

c) Rights, preferences and restrictions attached to equity shares

The Company has only one class of equity shares having a par value of Rs 10 per share. Each shareholder is eligible for one vote per share held by him. Dividend proposed if any by the Board of Directors is subject to the approval of shareholders in the Annual General Meeting, except in the case of interim dividend. In the event of liquidation, equity shareholders are eligible to receive any of the remaining assets of the Company after distribution of all preferential amounts in proportion to their shareholding.

d) Shares reserved for issue under options and contracts - NIL

e) Shares convertible into securities - NIL .

f) Calls Unpaid - NIL

4A. Term Loan with Small Industries development bank of India are Secured by charges: (i) Primary Security:

First charge by way of mortgage in favour of SIDBI of all the immovable property belonging to M/s PL Finance and Investments Limited and M/s Premier Energy and Infrastructure Limited located at Luz church road, part Mylapore vil lage and Triplicane -Mylapore tank, Chennai .The land given as a primary security which was purchased during the year 2007-08 (In joint name with another company) has not been registered and the charge under the Companies Act has not yet been created by the company.

(ii) Guarantee:

Irrevocable and unconditional, (i) Corporate guarantee for the total amount borrowed was given by: a) Shri Housing Private Limited, b) PL Finance and Investment Limited, c) Premier Energy and Infrastructure Limited and (ii) Shriram Auto Finance (firm)

4B. Disclosure in respect of continuing default for the term loan from SIDBI of Rs.10 crores:

There is no default in the repayment of interest during the period and the principal repayment starts only after the moratorium period of 6 months which is on 7-November-2014.

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Jun 30, 2013

A Basis of preparation of financial statements

The financial statements have been prepared and presented under the historical cost convention on the accrual basis as a going concern in accordance with Generally Accepted Accounting Principles ('' Indian GAAP''), Accounting Standards notified by the Companies ( Accounting Standards) Rules, 2006, as applicable, and the relevant provisions of the Companies Act,1956.

b Use of estimates

The preparation of financial statements in conformity with the generally accepted accounting principles requires the management to make estimates and assumptions that affect the reported amount of assets and liabilities, as at the date of balance sheet and the reported amount of revenue and expenses for the period and disclosure of contingent liabilities as at the date of the balance sheet. Actual amount could differ from these estimates. The differences if any will be dealt accordingly in subsequent periods.

c Tangible fixed assets

Tangible Fixed Assets are stated at cost less accumulated depreciation. The cost of an asset comprises its purchase price and any directly attributable cost of bringing the asset to its present condition for intended use

d Intangible assets

Goodwill on Amalgamation has been fully amortised using Straight line method over a period of 5 years. e Impairment of assets

Management periodically assesses using, external and internal sources, whether there is an indication that an asset may be impaired. An asset is impaired when the carrying amount of the asset exceeds its recoverable amount. An impairment loss is charged to Profit and Loss Account in the year in which an asset is identified as impaired.

f Depreciation

Depreciation on Fixed Assets is provided on Straight Line Method at the rates and in the manner specified in Schedule XIV to the Companies Act, 1956 except for Fixed Assets costing less than Rs 5,000/-, which are fully depreciated in the year of Purchase.Incremental Depreciation on account of enhancement in value of Fixed Assets due to revaluation is charged against Fixed Assets Revaluation Reserve

g Revenue recognition

Revenue from Infrastructure Development is recognised on percentage completion method.Dividend Income on Investments is accounted for when the right to receive the payment is established.Interest on short term investments are recognised on time proportion basis taking into account the amounts invested and the rate of interest.Profit / (Loss) on Sale of Current Investments, being the difference between the contracted rate and the cost (determined on weighted average basis) of the investments is recognised on sale.

h Investments

Long term Investments are valued at cost and provision for diminution in value is made for any decline, other than temporary, in the value of such Investments for each category. The Current Investments are valued at Cost and Fair value whichever is lower. Cost of Acquisition is inclusive of expenditure incidental to acquisition.

i Inventories

Inventories are valued at cost or net realizable value, whichever is lower. j Cash and cash equivalents

Cash and cash equivalents consists of cash, balance in bank, fixed deposits maturing in less than three months.

k Employee benefits

1 Short term employee benefits

All short term employee benefit plans such as salaries, bonus,medical benefits and, leave salary which fall due within

12 months of the period in which the employee renders the related services which entitles him to avail such benefits are recognized on an undiscounted basis and charged to the Statement of profit and loss.

2 Defined contribution plan

The Company had only 9 employees during the reporting period. Due to number of employees being lesser than threshold limit required for Provident & Pension Fund, the provisions for Provident Fund are not applicable.

3 Defined benefit plan

Liability towards gratuity is provided on the basis of an actuarial valuation using the Projected Unit Credit method and debited to the Statement of profit and loss on an accrual basis. Actuarial gains and losses arising during the year are recognized in the Statement of Profit and Loss.

l Earnings per share

Basic earnings per share are 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.For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

m Taxation

1 Income tax

Income tax expense comprises current tax for the year determined in accordance with the Income Tax Act, 1961.

2 Deferred tax

Deferred taxation is provided using the liability method in respect of the taxation effect originating from all material timing differences between the accounting and tax treatment of income and expenditure, which are expected with reasonable probability to reverse in subsequent periods. The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognized using the tax rates that have been enacted or substantively enacted as at the balance sheet date. Deferred tax assets are recognized only to the extent there is reasonable certainty that the assets can be realized in future; however, where there is unabsorbed depreciation or carried forward loss under taxation laws, deferred tax assets are recognized only when there is a virtual certainty of realization of such assets. Deferred tax assets are reviewed as at each balance sheet date and written down or, written up to reflect the amount that is reasonably/virtually certain (as the case may be) to be realized.

3 Minimum alternate tax

Minimum Alternate Tax (MAT) Credit is recognized as an asset only when and to the extent there is convincing evidence that the Company will pay Normal Income tax during the specified period. In the year in which the MAT Credit becomes eligible to be recognized as an asset in accordance with the recommendation contained in the Guidance Note issued by the Institute of Chartered Accountants of India if it is recognized, by way of credit to the Statement of Profit and Loss and shown as MAT Credit Entitlement. The Company reviews the same at each Balance Sheet Date and writes down the Carrying amount of MAT Credit Entitlement to the extent there is no longer convincing evidence to the effect that Company will pay normal income tax during the specified period.

n Provision and contingencies

A provision is recognized when the company has present obligations as a result of past event, it is probable that an outflow of resources will be required to settle the obligations, in respect of which reliable estimate can be made. Provisions are not discounted to its present value and are determined based on the best estimates required to settle the obligations as at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect a current best estimate.All known liabilities wherever material are provided for. Liabilities which are material and whose future outcome cannot be ascertained with reasonable certainty are treated as contingent and disclosed by way of notes to the accounts.

o Segment reporting

The company carries out business operations only in one business segment viz. infrastructure and hence segmental reporting does not arise.

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Jun 30, 2012

(i) Basis of preparation of financial statements

The financial statements have been prepared and presented under the historical cost convention on the accrual basis of accounting in accordance with Generally Accepted Accounting Principles (' Indian GAAP'), Accounting Standards notified by the Companies ( Accounting Standards) Rules, 2006, as applicable, and the relevant provisions of the Companies Act, 1956.

(ii) Use of estimates

The preparation of financial statements is in conformity with Indian Generally Accepted Accounting Principles (GAAP) which requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the period reported. Actual results could differ from these estimates.

(iii) Revenue Recognition

Revenue from Infrastructure Development is recognised on percentage completion method.

Dividend Income on Investments is accounted for when the right to receive the payment is established.

Interest on short term investments are recognised on time proportion basis taking into account the amounts invested and the rate of interest.

Profit/ (Loss) on Sale of Current Investments, being the difference between the contracted rate and the cost (determined on weighted average basis) of the investments is recognised on sale.

Rental income is recognised on straight line basis over the primary period of the arrangement.

(iv) Expenditure

Expenses are accounted for on accrual basis.

A Provision is recognised when an enterprise has a present obligation as a result of past event; it is probable that an outflow of resources will be required to settle an obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are determined based on a best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

(v) Fixed assets

(a) Tangibles

i. Buildings are stated at revalued amount less accumulated depreciation and impairment losses, if any. ii. Other fixed Assets are stated at cost less accumulated depreciation and impairment losses, if any.

(b) Intangibles:

Goodwill is amortised using Straight line method over a period of 5 years. Goodwill is tested for impairment every year.

(vi) Impairment:

All the fixed assets are periodically assessed using external (if need be) and internal sources for any indication of impairment at the end of each financial year. 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, if any, is determined as the excess of the carrying amount over the higher of the asset's net sales price or present value as determined above.

Contingencies are recorded when it is probable that a liability will be incurred and the amount can be reasonably estimated. Actual results could differ from these estimates.

(vii) Depreciation:

Depreciation on Fixed Assets is provided on Straight Line Method at the rates and in the manner specified in Schedule XIV to the Companies Act, 1956 except for Fixed Assets costing less than Rs 5,000/-, which are fully depreciated in the year of Purchase.

Incremental Depreciation on account of enhancement in value of Fixed Assets due to revaluation is charged against Fixed Assets Revaluation Reserve

(viii) Investments:

Long term Investments are valued at cost and provision for diminution in value is made for any decline, other than temporary, in the value of such Investments for each category. The Current Investments are valued at Cost and Fair value whichever is lower. Cost of Acquisition is inclusive of expenditure incidental to acquisition.

Transfer of investments from current to long term is made at lower of cost or market value prevalent on the date of transfer.

(ix) Employee Benefits:

(a) Short term employee benefits:

All short term employee benefit plans such as salaries, wages, bonus, special awards, medical benefits and, leave salary which fall due within 12 months of the period in which the employee renders the related services which entitles him to avail such benefits are recognized on an undiscounted basis and charged to the Statement of profit and loss.

(b) Defined Contribution Plan:

The Company had only 9 employees during the reporting period. Due to number of employees being lesser than threshold limit required for Provident & Pension Fund, the provisions for Provident Fund are not applicable.

(c) Defined Benefit Plan:

Liability towards gratuity is provided on the basis of an actuarial valuation using the Projected Unit Credit method and debited to the Statement of profit and loss on an accrual basis. Actuarial gains and losses arising during the year are recognized in the Statement of Profit and Loss.

(x) Taxes on Income

In accordance with the provisions of the Income Tax Act 1961, current tax is determined as the amount of tax payable to the taxation authorities in respect of taxable income for the year. Deferred tax is accounted for under the liability method, subject to the consideration of prudence for deferred tax assets, on timing differences being the difference between taxable and accounting income that originate in one period and are capable of reversal in one or more subsequent years

Minimum Alternate Tax (MAT) Credit is recognized as an asset only when and to the extent there is convincing evidence that the Company will pay Normal Income tax during the specified period. In the year in which the MAT Credit becomes eligible to be recognized as an asset in accordance with the recommendation contained in the Guidance Note issued by the Institute of Chartered Accountants of India if it is recognized, by way of credit to the Statement of Profit and Loss and shown as MAT Credit Entitlement. The Company reviews the same at each Balance Sheet Date and writes down the Carrying amount of MAT Credit Entitlement to the extent there is no longer convincing evidence to the effect that Company will pay normal income tax during the specified period.

(xi) Contingent Asset and Liabilities:

Provision is not recognized for:-

(a) Any possible obligation that arises from past events and the existence of which will be confirmed only by the occurrence or non occurrence of one or more uncertain future events not wholly within the control of the company; or

(b) Any present obligation that arises from past events but is not recognized because :-

- It is not probable that an outflow of resources embodying economic benefits will be required to settle an obligation; or

- A reliable estimate of the amount of obligation cannot be made.

Such Obligations are recorded as Contingent Liabilities. These are assessed periodically and only that part of the obligation for which an outflow of resources embodying economic benefits is probable, is provided for, except in the extremely rare circumstances where no reliable estimate can be made.

Contingent Assets are recognized in the Financial Statements only when certainity of realization is ascertained.

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Jun 30, 2011

(i) Basis of preparation of financial statements

The financial statements have been prepared and presented under the historical cost convention on the accrual basis of accounting in accordance with Generally Accepted Accounting Principles (' Indian GAAP'), Accounting Standards notified by the Companies ( Accounting Standards) Rules, 2006, as applicable, and the relevant provisions of the Companies Act,1956.

(ii) Use of estimates

The preparation of financial statements is in conformity with Indian Generally Accepted Accounting Principles (GAAP) which requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the period reported. Actual results could differ from these estimates.

(iii) Revenue Recognition

Dividend Income on Investments is accounted for when the right to receive the payment is established.

Interest on short term investments are recognised on time proportion basis taking into account the amounts invested and the rate of interest.

Profit / (Loss) on Sale of Current Investments, being the difference between the contracted rate and the cost (determined on weighted average basis) of the investments and recognised on sale.

Rental income is recognised on straight line basis over the primary period of the arrangement.

Revenue from Infrastructure Development is recognised on percentage of completion method.

(iv) Expenditure

Expenses are accounted for on accrual basis.

A Provision is recognised when an enterprise has a present obligation as a result of past event; it is probable that an outflow of resources will be required to settle an obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are determined based on a best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

(v) Fixed assets

(a) Tangibles

i. Buildings are stated at revalued amount less accumulated depreciation and impairment losses, if any.

ii. Other fixed Assets are stated at cost less accumulated depreciation and impairment losses, if any.

(b) Intangibles:

Goodwill is amortised using Straight line method over a period of 5 years. Goodwill is tested for impairment every year.

(vi) Impairment:

All the fixed assets are periodically assessed using external (if need be) and internal sources for any indication of impairment at the end of each financial year. 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, if any, is determined as the excess of the carrying amount over the higher of the asset's net sales price or present value as determined above.

Contingencies are recorded when it is probable that a liability will be incurred and the amount can be reasonably estimated. Actual results could differ from these estimates.

(vii) Depreciation:

Depreciation on Fixed Assets is provided on Straight Line Method at the rates and in the manner specified in Schedule XIV to the Companies Act, 1956 except for Fixed Assets costing less than Rs 5,000/-, which are fully depreciated in the year of Purchase.

Incremental Depreciation on account of enhancement in value of Fixed Assets due to revaluation is charged against Fixed Assets Revaluation Reserve

(viii) Investments:

Long term Investments are valued at cost and provision for diminution in value is made for any decline, other than temporary, in the value of such Investments for each category. The Current Investments are valued at Cost or Fair value whichever is lower. Cost of Acquisition is inclusive of expenditure incidental to acquisition.

Transfer of investments from current to long term is made at lower of cost or market value prevalent on the date of transfer.

(ix) Employee Benefits:

(a) Short term employee benefits:

All short term employee benefit plans such as salaries, wages, bonus, special awards, medical benefits and, leave salary which fall due within 12 months of the period in which the employee renders the related services which entitles him to avail such benefits are recognized on an undiscounted basis and charged to the profit and loss account.

(b) Defined Contribution Plan:

The Company had only 9 employees during the reporting period. Due to number of employees being lesser than threshold limit required for Provident & Pension Fund, the provisions for retirement benefit as per AS 15 does not arise.

(c) Defined Benefit Plan:

Liability towards gratuity is provided on the basis of an actuarial valuation using the Projected Unit Credit method and debited to the profit and loss account on an accrual basis. Actuarial gains and losses arising during the year are recognized in the profit and loss account. During the previous year gratuity was provided for on basis of actual payment due if all the employees retire on the balance sheet date.

(x) Taxes on Income

In accordance with the provisions of the Income Tax Act 1961, current tax is determined as the amount of tax payable to the taxation authorities in respect of taxable income for the year. Deferred tax is accounted for under the liability method, subject to the consideration of prudence for deferred tax assets, on timing differences being the difference between taxable and accounting income that originate in one period and are capable of reversal in one or more subsequent years

Minimum Alternate Tax ( MAT) Credit is recognized as an asset only when and to the extent there is convincing evidence that the Company will pay Normal Income tax during the specified period. In the year in which the MAT Credit becomes eligible to be recognized as an asset in accordance with the recommendation contained in the

Guidance Note issued by the Institute of Chartered Accountants of India by way of credit to the Profit & Loss Account and shown as MAT Credit Entitlement. The Company reviews the same at each Balance Sheet Date and writes down the Carrying amount of MAT Credit Entitlement to the extent there is no longer convincing evidence to the effect that Company will pay normal income tax during the specified period.

(xi) Contingent Asset and Liabilities:

Provision is not recognized for:-

(a) Any possible obligation that arises from past events and the existence of which will be confirmed only by the occurrence or non occurrence of one or more uncertain future events not wholly within the control of the company; or

(b) Any present obligation that arises from past events but is not recognized because :-

- It is not probable that an outflow of resources embodying economic benefits will be required to settle an obligation ;or

- A reliable estimate of the amount of obligation cannot be made.

Such Obligations are recorded as Contingent Liabilities. These are assessed periodically and only that part of the obligation for which an outflow of resources embodying economic benefits is probable, is provided for, except in the extremely rare circumstances where no reliable estimate can be made.

Contingent Assets are recognized in the Financial Statements only when certainity of realization is ascertained.

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Jun 30, 2010

(i) Basis of preparation of finanual statements

The financial statements have been prepared and presented under the historical cost convention on the accrual basis of accounting in accordance with Generally Accepted Accounting Principles ( Indian GAAP), Accounting Standards notified by the Companies ( Accounting Standards) Rules, 2006, as applicable, and the relevant provisions of the Companies Act, 1956.

(ii) Use of estimates

The preparation of financial statements is in conformity with Indian Generally Accepted Accounting Principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the period reported. Actual results could differ from these estimates.

(iii) Revenue Recognition

Dividend Income on Investments is accounted for when the right to receive the payment is established. Interest on short term investments are recognised on time proportion basis taking into account the amounts invested and the rate of interest.

Profit / (Loss) on Sale of Current Investments, being the difference between the contracted rate and the cost (determined on weighted average basis) of the investments and recognised on sale.

Rental income is recognised on straight line basis over the primary period of the arrangement.

(iv) Expenditure

Expenses are accounted for on accrual basis.

A Provision is recognised when an enterprise has a present obligation as a result of past event; it is probable that an outflow of resources will be required to settle an obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are determined based on a best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

(v) Fixed assets

(a) Tangibles

Fixed Assets are stated at revalued amount less accumulated depreciation and impairment losses, if any.

(b) Intangibles:

Goodwill are amortised using Straight line method over a period of 5 years. Goodwill is tested for impairment every year. (vi) Impairment:

All the fixed assets are periodically assessed using external (if need be) and internal sources for any indication of impairment at the end of each financial year. 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, if any, is determined as the excess of the carrying amount over the higher of the assets net sales price or present value as determined above.

Contingencies are recorded when it is probable that a liability will be incurred and the amount can be reasonably estimated. Actual results could differ from these estimates.

(vii) Depreciation:

Depreciation on Fixed Assets is provided on Straight Line Method at the rates and in the manner specified in Schedule XIV to the Companies Act, 1956 except for Fixed Assets costing less than Rs 5,000/-, which are fully depreciated in the year of Purchase.

Incremental Depreciation on account of enhancement in value of Fixed Assets due to revaluation is charged against Fixed Assets Revaluation Reserve

(viii) Investments:

Long term investments are valued at cost and provision for diminution in value is made for any decline, other than temporary, in the value of such Investments for each category. The Current Investments are valued at Cost or Fair value whichever is lower Cost of Acquisition is inclusive of expenditure incidental to acquisition.

(ix) Property Held for Development:

Property held for Development has been stated at cost or net realisable value which ever is lower..

(x) Employee Benefits:

(a) Short term employee benefits-

Short term employee .benefits are recognized as an expense as per Companys scheme based on the expected obligation on an undiscounted basis,

(b) Defined Contribution Plan:

The Company had only 11 employees during the reporting period. Due to number of employees being lesser threshold limit than required for Provident & Pension Fund, the provisions for retirement benefit as per AS 15 does not arise.

(c) Defined Benefit Plan:

The Company has provided for gratuity on the basis of actual payment due if all the employees retire on the Balance Sheet date.

(d) Other Long term Employee benefits:

Company does not extend any leave encashment benefits to employees. Hence, provision for retirement benefit as per AS 15 does not arise. (In view of this, no disclosure is made as required by AS-15)

Taxes on Income

Current tax is measured at the amount expected to be paid to tax authorities in accordance with the Income Tax Act, 1961.

Deferred income taxes reflect the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing difference of earlier years.

Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date.

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.

Minimum Alternate Tax ( MAT) Credit is recognized as an asset only when and to the extent there is convincing evidence that the Company will pay Normal income tax during the specified period. In the year in which the MAT Credit becomes eligible to be recognized as an asset in accordance with the recommendation contained in the Guidance Note issued by the Institute of Chartered Accountants of India by way of credit to the Profit & Loss Account and shown as MAT Credit Entitlement. The Company reviews ti\e same at each Balance Sheet Date and writes down the Carrying amount of MAT Credit Entitlement to the extent there is no longer convincing evidence to the effect that Company will pay normal income tax during the specified period.

Contingent Asset and Liabilities:

Provision is not recognized tor-

(a) Any possible obligation that arises from past events and the existence of which will be confirmed only by the occurrence or non occurrence of one or mors uncertain future events not wholly within the control of the company: or

(b) Any present obligation that arises from past events but is not recognized because :-

- It is not probable that an outflow of resources embodying economic benefits will be required to settle an obligation ;or

- A reliable estimate of the amount of obligation cannot be made.

Such Obligations are recorded as Contingent Liabilities. These are assessed periodically and only that part of the obligation tor which an outflow of resources embodying economic benefits is probable, is provided for, except in the extremely rare circumstances where no reliable estimate can be made.

Contingent Assets are recognized in the Financial Statements only when certainity of realization is ascertained.

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Mar 31, 2009

1." The Financial statements are prepared under the Historical Cost convention and applicable Mandatory Accounting Standards. Generally revenues are recognized on accrual basis with provision made for known losses and expenses are accounted on accrual basis.

2. Fixed Assets are stated at original cost of acquisition and are shown net of accumulated Depreciation.

3. Depreciation: Fixed Assets and assets given on lease are depreciated on straight line method in accordance with Schedule XIV of the Companies Act, 1956.

4. Investments: Long Term investments are stated at cost net of diminution in their value other than temporary with reference to the Market Value / Net worth.

5. Property Development Project in progress: Property Development projects in progress are valued at the lower of cost (inclusive of attributable overheads and interest) and net realizable value taking into consideration the estimated cost to complete.

6. Revenue Recognition: Revenue from Property Development projects in progress is recognized on a percentage of completion basis as certified by architects after considering any possible foreseeable losses,