Accounting Policies of Alpine Housing Development Corporation Ltd. Company

Mar 31, 2023

1. Bakground of the Company and nature of operation

M/s. ALPINE HOUSING DEVELOPMENT CORPORATION LIMITED ("the Company"), was incorporated on 21st May 1992 as a company under the Companies Act, 195. The company is engaged in the business of Property Development, Construction and Railway Concrete Sleepers SG & Grey Iron Castings.The registered office of the Company is located at No.302, Alpine Arch No.10, Langford Road, Bangalore -560027 IN.

2. Basis of preparation, measurement and significant accounting policies 2.1 Basis of preparation and measurement

a. Statement of compliance:

The Balance Sheet of the Company as at 31 March 2023 and the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Changes in Equity and the Statement of Cash flows for the year ended 31 March 2023 and summary of significant accounting policies and other financial information (together referred as ‘Financial Statements’) has been prepared under Indian Accounting Standards (''Ind AS'') notified under Section 133 of the Companies Act, 2013 read with the Companies (Indian Accounting Standards) Rules, 2015 (as amended from time to time) and presentation requirements of Division II of Schedule III to the Companies Act, 2013 (Ind AS compliant Schedule III)

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.

As the quarter and year figures are taken from the source and rounded to the nearest digits, the figures already reported for all the quarters during the year might not always add up to the year figures reported in this statement.

b Current vs non-current classification:

All the assets and liabilities have been classified into current and non current.

Assets:

An asset is classified as current when it satisfies any of the following criteria:

a) it is expected to be realised in, or is intended for sale or consumption in, the Company’s normal operating cycle;

b) it is held primarily for the purpose of being traded;

c) it is expected to be realised within twelve months after the reporting date; or

d) it is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for atleast twelve months after the reporting date.

Liabilities:

A liability is classified as current when it satisfies any of the following criteria:

a) It is expected to be settled in the Company’s normal operating cycle;

b) It is held primarily for the purpose of being traded;

c) It is due to be settled within twelve months after the reporting date; or

d) The Company doesnot have an unconditional right to defer settlement of the liability for atleast twelve months after the reporting date. T ermsof a liability that could, at the option of the counter party, result in its settlement by the issue of equity instruments do not affect its classification.

Operating cycle:

All assets and liabilities have been classified as current or noncurrent as per the company normal operating cycle and other criteria set out in the Schedule III to the Companies Act 2013. Based on the nature of Operations and the time taken between acquisition of assets / inventories for processing and their realization in cash and cash equivalents, the Company has ascertained its operating cycle as Mentioned below for the purpose of the classification of assets and liabilities into current and non-current.

Operating Cycles of various businesses carried on by the Company:

	Nature Of Business	Operating Cycle
i.	Property Development	Seven Years
ii.	Railway Sleeper Manufacturing	Three Years
iii.	Other Manufacturing	Six Months

c Basis of measurement:

These financial statements have been prepared on accrual and going concern basis and the historical cost convention except for the following assets and liabilities which have been measured at fair value or revalued amount:

• Certain financial assets and liabilities (including derivative instruments) measured at fair value.

• Assets and liabilities assumed on business combination measured at fair value.

• Net defined benefit asset / liability - Fair value of plan assets less present value of defined benefit obligations.

d Key estimates and assumptions:

In preparing these financial statements, management has made judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.

The areas involving critical estimates or judgements are

i. Determination of useful lives of property, plant and equipment and intangibles; (Note 2.2(a))

ii. Recognition of deferred tax assets; (Note 2.2(m))

iii. Recognition and measurement of provisions and contingencies; (Note 2.2(j))

iv. Measurement of defined benefit obligations; (Note 2.2(I))

e Measurement of fair values:

Company’s accounting policies and disclosures requite the measurement of fair values, for both financial and non-hnancial assets and liabilities.

The Company has an established control framework with respect to the measurement of fair values (including Level 3 fair values). The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs.

Fair values are categorized into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows.

Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).

If the inputs used to measure the fair value of an asset or a liability fall into different levels of the fair value hierarchy, then the fair value measurement is categorized in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement.

The Company recognises transfers between levels of the fair value hierarchy at the end of the reporting year during which the change has occurred.

Further information about the assumptions made in measuring fair values is included in the notes on Financial instruments.

2.2 Significant accounting policies

a) (i) Property plant and equipment

Recognition and measurement:

Items of property, plant and equipment, other than freehold land are measured at cost less accumulated depreciation and any accumulated impairment losses.

Freehold land is carried at cost and is not depreciated. The cost of an item of property, plant and equipment comprises its purchase price, including import duties and non-refundable purchase taxes, (after deducting trade discounts and rebates), any directly attributable costs of bringing the asset to its working condition for its intended use and estimated costs of dismantling and removing the item and restoring the item and restoring the site on which it is located.

If significant parts of an item of property, plant and equipment have different useful lives, then they are accounted for as separate items (major components) of property, plant and equipment.

Any gain or loss on derecognition of an item of property, plant and equipment is included in statement of profit and loss when the item is derecognized.

Subsequent costs are included in the assets carrying amount or recognized as a separate asset, as appropriate only if it is probable that the future economic benefits associated with the item will flow to the Company and that the cost of the item can be reliably measured. The carrying amount of any component accounted for as a separate asset is derecognized when replaced. All other repair and maintenance are charged to statement of profit and loss during the reporting year in which they are incurred.

Depreciation:

Depreciation on property, plant and equipment, is provided under the written down value method in the manner prescribed under Schedule II of the Act.

Depreciation methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate.

(ii) Investment Property :

Investment properties are properties held to earn rentals and/or for capital appreciation (including property under construction for such purposes). Investment properties are measured initially at cost, including transaction costs. Subsequent to initial recognition, investment properties are measured in accordance with Ind AS 16''s requirements for cost model. The cost of Investment property includes the cost of replacing parts and borrowing costs for long-term construction projects if the recognition criteria are met. When significant parts of the investment property are required to be replaced at intervals, the Company depreciates them separately based on their specific useful lives. All other repair and maintenance costs are recognised in Statement of Profit and Loss as incurred.

b) Impairment of non-financial assets

The Company’s non-financial assets, other than inventories and deferred tax assets, are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated.

The recoverable amount of an individual asset (or where applicable, that of cash generating unit (CGU) to which the asset belongs) is the higher of its value in use and its fair value less costs to sell. Value in use is based on the estimated future cash flows, discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset (or CGU).

An impairment loss is recognised if the carrying amount of an asset or CGU exceeds its estimated recoverable amount. Impairment losses are recognised in the statement of profit and loss.

An impairment loss in respect of goodwill is not subsequently reversed. In respect of other assets for which impairment loss has been recognised in prior periods, the Company reviews at each reporting date whether there is any indication that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. Such a reversal is made only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised.

c) Recognition Of Revenue

Revenue from contracts with customers is recognised when control of the goods or services are transferred to the customer at an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. Revenue is measured based on the transaction price, which is the consideration, adjusted for discounts and other credits, if any, as specified in the contract with the customer. The Company presents revenue from contracts with customers net of indirect taxes in its statement of profit and loss.

The Company considers whether there are other promises in the contract that are separate performance obligations to which a portion of the transaction price needs to be allocated. In determining the transaction price, the Company considers the effects of variable consideration, the existence of significant financing components, noncash consideration, and consideration payable to the customer (if any).

a. Value of Contract completed is accounted as sales/income on raising of invoices on the basis of value of works completed as certified by the architects.

b. In the case of sales of Apartments under construction by the company of its own:

i. Value of sales of undivided share of title and interest in the land are accounted on execution of the agreement to sell.

ii. The values receivable towards the construction of the apartments under the construction agreement are accounted on the basis of the proportionate value determined and invoiced on the basis of certificate of the value of the works completed.

iii. The proportionate cost of construction apportioned to the apartments not yet sold as at the year-end are reckoned as work in progress at cost.

c. In case of sale of Apartments under construction by the company under joint development agreements:

i. Value of sale of company’s share of undivided share of title and interest in land in cases where the agreement to sell is executed and the values receivables towards the construction of the Apartments under the construction agreements are accounted on the basis of the proportionate sale value realizable on total sale of company’s share in the built up area in the same ratio as the total cost incurred would bear to the total estimated cost of construction of the project.

ii. The proportionate cost of the units in respect of which the agreement to sell is not yet executed are reckoned as work in progress at cost.

d. The percentage of completion of the various projects carried by the Company is ranging from 92% to 94%. And accordingly, the revenues are recognized for these projects. The balance work will be completed in the coming years.

e. In respect of Sale of Railway Sleeper:

i. Sales are accounted attendered price on dispatch of Railways Sleepers.

ii. The balance of the escalation will be accounted on availability of the latest applicable rates and as and when the company makes claims.

f. All other Sales revenues are accounted on accrual basis.

g. All incomes, to the extent they are ascertained, are accounted on accrual basis.

h. Incomes which are not ascertained and quantum whereof cannot be determined are accounted in the year in which the same are ascertained and determined or received, whichever is earlier.

d) Expenditure Recognition

1. Purchases are accounted at cost on accrual basis excluding input tax credit, if any, available thereon.

2. Liabilities in respect of all expenditure are accounted on accrual basis.

3. The liability in respect of any other expenditure which are not easily ascertainable are accounted in the year in which such liabilities are either ascertained or actually paid whichever is earlier.

4. The liability in respect of levies payable in respect of the escalation in price on sale of Railway Sleepers are accounted as and when the quantum of the escalation in price is finally determined by the Railways

5. Liability in respect of gratuity and leave encashment payable to employee’s on retirement is estimated and provided for in the accounts on the basis of the liability on the company as at the last day of the accounting period.

e) Inventory Valuation

a. Work-in-progress of Housing projects are valued at costas stated in 2.2 (c) (b) (iii) and 2.2 (c) (c) (ii) subpara.

b. Land & repurchased flats held in stock are valued at cost.

c. Raw Materials of Railway Sleeper Project are valued at cost; and

d. Finished products and works in progress at railway sleeper project are valued at cost or net realizable value whichever is lower.

f) Financial Instrument

Financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. Financial instruments also include derivative contracts such as call options to buy out stake in subsidiary.

g) 1. Financial Assets

Initial recognition and measurement

Financial assets are initially recognized when the Company becomes a party to the contractual provisions of the instrument. All financial assets other than those measured subsequently at fair value through profit and loss, are recognized initially at fair value plus transaction costs that are attributable to the acquisition of the financial asset.

Subsequent measurement

For the purpose of subsequent measurement, financial assets are classified in four categories:

¦Amortized cost,

• Fair value through profit(FVTPL)

• Fair value through other comprehensive income (FVTOCI)

on the basis of its business model for managing the financial assets and the contractual cash flow characteristics of the financial asset.

Amortized cost:

A financial instrument is measured at the amortized cost if both the following conditions are met: The asset is held within a business model whose objective is to hold assets for collecting contractual cash flows, and contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding.

After initial measurement, such financial assets are subsequently measured at amortized cost using the effectiveinterest rate (EIR) method.

Fair value through profit and loss(''FVTPL''):

All financial assets that do not meet the criteria for amortised cost or fair value through other comprehensive income are measured at fair value through profit or loss with all changes recognized in the statement of profit and loss. Interest income (basis EIR method), from financial assets at fair value through profit or loss is recognised in the statement of profit and loss within finance income/ finance costs separately from the other gains/ losses arising from changes in the fair value. Derivative financial instruments (call option over shares of subsidiaries) are classified as financial instruments at fair value through profit or loss. Such derivative financial instruments are initially recognised at fair value.They are subsequently re-measured at their fair value, with changes in fair value being recognised in the statement of profit and loss.

Fairvaluethrough Other Comprehensive Income (''FVOCI'')

Financial assets are measured at FVOCI if both the following conditions are met:

The asset is held within a business model whose objective is achieved by both

- collecting contractual cash flows and selling financial assets and

- contractual terms of the asset give rise on specified dates to cash flows that are SPPI on the principal amount outstanding.

After initial measurement, these assets are subsequently measured at fair value. Dividends, Interest income under effective interest method, foreign exchange gains and losses and impairment losses are recognized in the Statement of Profit and Loss. Other net gains and losses are recognized in other comprehensive Income

A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognized in the statement of profit or loss.

Derivative financial instruments

Derivative financial instruments are initially recognised at fair value on the date on which a derivative contract is entered into and are subsequently re-measured at fair value through profit or loss account. Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when the fair value is negative.

Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if there is a currently enforceable legal right to offset the recognized amounts and there is an intention to settle on a net basis, or to realize the assets and settle the liabilities simultaneously.

h) Investments in subsidiaries, associates and joint ventures:

No Investment held during the financial year by the company.

I) Cash and Cash Equivalents

Cash and cash equivalents in the balance sheet and cash flow statement includes cash at bank and on hand, deposits held at call with banks, with original maturities less than three months which are readily convertible into cash and which are subject to insignificant risk of changes in value.

j) Provisions, Contingent Liabilities and Contingent Assets

A provision is recognized when the enterprise has a present obligation (legal or constructive) as a result of a past event and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, in respect of which a reliable estimate can be made. These are reviewed at each balance sheet date and adjusted to reflect the current management estimates.

If the effect of the time value of money is material, provisions are determined by discounting the expected future cash flows specific to the liability. The unwinding of the discount is recognized as finance cost.

Contingent Liabilities are disclosed in respect of possible obligations that arise from past events but their existence is confirmed by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company.

A contingent asset is a possible asset that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity. Contingent Assets are not recognized till the realization of the income is virtually certain. However the same are disclosed in the financial statements where an inflow of economic benefit is probable.

k) Other income Interest income

For all financial instruments measured at amortized cost, interest income is recorded using the effective interest rate (EIR). EIR is the rate which exactly discounts the estimated future cash receipts over the expected life of the financial instrument to the gross carrying amount of the financial asset. When calculating the EIR the Company estimates the expected cash flows by considering all the contractual terms of the financial instrument (for example, prepayments, extensions, call and similar options); expected credit losses are considered if the credit risk on thatf inancial instrument has increased significantly since initial recognition.

l) Employee Benefits

(I) Short-term Employee benefits

Liabilities for wages and salaries, bonus and ex gratia including non-monetary benefits that are expected to be settled wholly within twelve months after the end of the year in which the employees render the related service are classified as short term employee benefits and are recognized as an expense in the Statement of Profit and Loss as the related service is provided.

A liability is recognized for the amount expected to be paid if the Company has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably.

(ii) Compensated absences

The Company provides for compensated absences. The employees are entitled to accumulate leave subject to certain limits, for future encashment or availment. The liability is accrued based on the number of days of unavailed leave at each Balance Sheet date. It is measured at the balance sheet date on the basis of an independent actuarial valuation using the Projected Unit Credit method. Actuarial gains and losses are recognised in full in the statement of profit and loss in the period in which they occur. The Company also offers a short term benefit in the form of encashment of unavailed accumulated compensated absences above certain limits for all of its employees and same is recognised as undiscounted liability atthe balance sheet date.

(iii) Share-based payments

The cost of equity settled transactions is determined by the fair value at the grant date which is based on the Black Scholes model. The grant date fair value of options granted to employees is recognized as an employee expense, with a corresponding increase in equity under ‘Employee Stock Options Reserve”, over the period that the employees become unconditionally entitled to the options.

The expense so determined is recognised over the requisite vesting period, which is the period over which all of the specified vesting conditions are to be satisfied. As at each reporting date, the Company revises its estimates of the number of options that are expected to vest, if required.

When the terms of an equity-settled award are modified, in addition to the expense pertaining to the original award, an incremental expense is recognised for any modification that results in additional fair value, or is otherwise beneficial to the employee as measured at the date of modification.

(iv) Post-Employment Benefits Defined Contribution Plans:

A defined contribution plan is a post-employment benefit plan under which a Company pays specified contributions to a separate entity and has no obligation to pay any further amounts. The Company makes contribution to provident fund in accordance with Employees Provident Fund and Miscellaneous Provisions Act, 1952 and Employee State Insurance. Contribution paid or payable in respect of defined contribution plan is recognized as an expense in the year in which services are rendered by the employee.

Defined Benefit Plans:

The Company''s gratuity benefit scheme is a defined benefit plan. The liability is recognised in the balance sheet in respect of gratuity is the present value of the defined benefit/obligation at the balance sheet date less the fair value of plan assets (being funded portion), together with adjustments for unrecognised actuarial gain losses and past service costs. The defined benefit/obligation are calculated at balance sheet date by an independent actuary using the projected unit credit method.

Re-measurement of the net defined benefit liability, which comprise actuarial gains and losses, the return on plan assets (excluding interest) and the effect of the asset ceiling (if any, excluding interest), are recognised immediately in other comprehensive income (OCI).

m) Income tax

Income tax expense /income comprises current tax expense income and deferred tax expense income. It is recognized in statement of profit and loss except to the extent that it relates to items recognized directly in equity or in Other Comprehensive Income, in which case, the tax is also recognized directly in equity or other comprehensive income, respectively.

CurrentTax

Current tax comprises the expected tax payable or recoverable on the taxable profit or loss for the year and any adjustment to the tax payable or recoverable in respect of previous years. It is measured at the amount expected to be paid to (or recovered from) the taxation authorities, using the applicable tax rates and tax laws.

* Currenttax assets and liabilities are offset only if, the Company has a legally enforceable right to set off the recognized amounts; and

¦ Intends eitherto settle on a net basis, or to realize the asset and settle the liability simultaneously.

Deferred Tax

Deferred Income tax is recognized in respect of temporary differences between the carrying amount of assets and liabilities for financial reporting purpose and the amount considered for tax purpose.

Deferred tax assets are recognized for unused tax losses, unused tax credits and deductible temporary differences to the extent that it is probable that future taxable profits will be available against which they can be utilized. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that sufficient taxable prof it will be available to allow the benefit of part or all of that deferred tax asset to be utilized such reductions are reversed when it becomes probable that sufficient taxable prof its will be available.

Unrecognized deferred tax assets are reassessed at each reporting date and recognized to the extent that it has become probable that future taxable prof its will be available against which they can be recovered.

Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, using tax rates enacted or substantively enacted by the end of the reporting period.

The measurement of deferred tax assets and liabilities reflects the tax consequences that would follow from the manner in which the Company expects, at the reporting date, to recover or settle the carrying amount of its assets and liabilities.

Deferred tax assets and liabilities are offset only if:

I) The entity has a legally enforceable right to set off currenttax assets against currenttax liabilities; and ii) The deferred tax assets and the deferred tax liabilities relate to income taxes levied by the same taxation authority on the same taxable entity.

n) Foreign currency transactions Functional and Presentation currency

The Company’s financial statements are prepared in Indian Rupees (INR) which is also company''s functional currency. Transactions and balances

There are no transactions in foreign exchange during the year.

o) Earnings per share:

Basic Earnings per share is calculated by dividing the profit or loss for the year attributable to the equity shareholders by the weighted average number of equity shares outstanding during the year.

For the purpose of calculating diluted earnings per share, the profit or loss for the period attributable to the equity shareholders and the weighted average number of equity shares outstanding during the period is adjusted to take into account:

* The after income tax effect of interest and other financing costs associated with dilutive potential equity shares, and

* Weighted average number of additional equity shares that would have been outstanding assuming the conversion of all dilutive potential equity shares.

p) Rounding off amounts

All amounts disclosed in financial statements and notes have been rounded off to the nearest digits as per the requirement of schedule III, under otherwise stated;

2 3 REGROUPING BASED ON “AMENDED SCHEDULE III” OF COMPANIES ACT, 2013 :

Appropriate regrouping have been made in the financial statements, where ever required by reclassification of the corresponding items of income, expenses, assets, liabilities and cash flows, in order to bring them in line with the nomenclature and classification as per the audited financial statements of the Company for the year ended March 31, 2022, prepared in accordance with the Schedule III of Companies Act, 2013, as amended (the “Amended Schedule III’), requirements of Ind AS 1 and other Ind AS principles.

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Mar 31, 2018

NOTES FORMING PART OF ANNUAL ACCOUNTS:

Particulars in respect of Long Term Borrowings are:

a Mortgage Term Loan (OSL)(M) due to Syndicate Bank Rs,1,56,32,187/- (P.Y. Rs. 1,68,23,766/-)

i Are secured Hypothecation of Stock of Raw Materials, Stock-in-process, Finished Goods, tools, spares, other receivables of Sleeper Hypothecation of Plant & Machinery of and by Unregistered Equitable Mortgage by deposit of title deeds of Land at Mangalore jointly owned by the company and Alpine Builders Private Limited as collateral security.

ii. Personal Guarantee of two of the Directors viz., Mr. S.A.Kabeer and Mr.S.A.Rasheed and that of M/s Alpine Builders Private Limited are provided

iii. Repayable in 120 Months EMI of Rs.2,73,238.65

iv. Amount of continuing default is Rs.Nil (Rs.Nil)

vi Long Term: Rs. 1,23,25,974/-(P.Y. Rs 1,42,20,793/-)Short Term: Rs. 19,51,458/-(P.Y. Rs 14,11,394/-)

b. Loan due to India Bulls Commercial Credit Ltd.,: Rs.7,42,44,761/- (P.Y.Rs.8,00,70,280/-):

i. Are secured by Equitable Mortgage of land bearing Sy.No.67/3, Sarakki gate, Kanakapura Main Road, Bangalore measuring in all to 1 Acre Nil Guntas belonging to the company.

ii. Repayable in 96 equated monthly installments of Rs.14,86,565/- (inclusive of interest)

iii. No default .

c. Line of Credit (LOC) due to Gruh Finance Limited for Alpine Fiesta Housing Project Rs,19,84,34,718/- (P.Y.Rs. 29,48,31,634/-)

i. Are secured by Equitable Mortgage of Developer share with 69% of undivided share of land and 256578 Sq. Feet of Super built up Area to be constructed where the Alpine Fiesta Housing Project is being developed as primary security.Equitable Mortgage of residential Plots No.49,51,52,53,54,55,56,57,63 & 64 at Boyalahalli, Jala Hobli, Bangalore, belonging to Mr.S A Kabeer Directory of the companyEquitable Mortgage of Residential Flat bearing no. 507 admeasuring 1458 sqft Sy.No.13 situated at Doddanekundi Village, K R Puram Hobli, Bangalore East Taluk belonging to M/s.Jaz Exports & Engineering Pvt Ltd, wher in som of the Directors of the company and their relative are interested as Directors.

ii. Repayable shall be a period of 48 Months for the last day of the month in which the first disbursement is made (ie., ending 10^th August, 2018.)

iii. No default .

d. Loan Against Property (Secured Loan) due to HDB Financial Services Limited Rs,2,05,76,947/- (P.Y.Rs. 2,31,74,870/-)

i Equitable Mortgage of Residential Property No.GF2 & GF3, Alpine Arch, No.10 Langford Bangalore - 560027. owned by Mrs.Athiya Begum wife of a Director of the company.

ii. Personal Guarantee of the Directors viz., Mr. S.A.Kabeer, Mr.S.A.Rasheed, Mr.S M Muneer, Mr.S M Mohsin and their wifes.

iii. Repayable in 84 Months EMI of Rs.4,10,939/-

iv. Amount of continuing default is Rs.Nil (Rs.Nil)

vi Long Term: Rs. 1,77,62,118/-(P.Y. 2,06,28,858/-)Short Term: Rs. 28,14,829/-(P.Y. 25,46,012/-)

e. Term Loan - I due to Capri Global Capital Limited (CGCL) for Alpine Vistula Housing Project Rs,10,36,62,881/-

(P.Y.Rs. Nil)

i. Are secured by Equitable Mortgage of Residential project titled “Alpine Vistula” situated at Survey No.139 of Seegehalli Village, Bidarahalli Hobli, Bangalore East Taluk Developer share of unsold flats of 115 No''s along with undivided share of land and 1,33,988 Sq. Feet of Super built up Area to be constructed where the Alpine Vistula Housing Project is being developed as security. Total facility amount of Rs.22 Crs. Drawdown in multiple tranches to be utilized towards construction and development of cost of the project.

ii. Repayable shall be a period of 30 Months First Instalment falling due at the end of 19^th month from the date of first disbursement along with project receivables • First 20 monthly installment of Rs.60.00 Lacs each* Balance 10 Monthly installment of Rs.1.00 Crs each

iii. No default

f. Term Loan - II due to Capri Global Capital Limited (CGCL) for Alpine Vistula Housing Project Rs,11,73,74,365/-

(P.Y.Rs. Nil)

i. Are secured by Equitable Mortgage of Residential Completed Flats of the project titled “Alpine Viva” situated at Survey No.139 of Seegehalli Village, Bidarahalli Hobli, Bangalore East Taluk Developer share of unsold flats of 39 No''s along with undivided share of land and 52,561 Sq. Feet of Super built up Area Construction Flats as security. Total facility amount of Rs.12 Crs. Drawdown for Corporate purpose.

ii. Repayable shall be a period of 30 Months tenor and 12 Months Moratorium and repayment in 18 monthly installments, First Installments falling due at the end of 13^th month from the date of first disbursement along with project receivables •

18 Monthly equal Installments

iii. No default

iv. Long Term: Rs. 7,73,74,365/-(P.Y. Nil) Short Term: Rs.4,00,00,000/—(P.Y. Nil)

g. Term Loan (Construction Finance Loan) due to Reliance Home Finance Limited for Alpine Pyramid Housing Project

Rs,10,07,56,720/- (P.Y.Rs. Nil)

i. Are secured by Equitable Mortgage of Residential project titled “Alpine Pyramida” situated at Survey No.1554/209,3,4,6,8 Kodigehalli Village Yelahanka Hobli,, Bangalore - 560092 Developer share of unsold flats of 71 No''s along with undivided share of land and 1,05,187 Sq. Feet of Super built up Area to be constructed where the Alpine Vistula Housing Project is being developed as security. Total facility amount of Rs.20 Crs. Drawdown in multiple tranches to be utilized towards construction and development of cost of the project.

ii. Repayable shall be a period of 42 Months tenor and 12 Months Moratorium and repayment in 24 monthly installments along with project receivables 24 Monthly Installments

iii. No default

iv. Long Term: Rs. 10,07,56,720/-(P.Y. Nil) Short Term: Rs. Nil /-(P.Y. Nil)

h. SOD Loan (OD) due to Syndicate Bank Rs. 2,04,09,221/- (P.Y. Rs. Nil)

i Are secured Hypothecation of Stock of Raw Materials, Stock-in-process, Finished Goods, tools, spares, other receivables of Sleeper Land at Mangalore jointly owned by the company and Alpine Builders Private Limited as collateral security.

ii. Personal Guarantee of two of the Directors viz., Mr. S.A.Kabeer and Mr.S.A.Rasheed and that of M/s Alpine Builders Private Limited are provided

iii. Repayable on demand

iv. Amount of continuing default is Rs.Nil (Rs.Nil)

i Term Loan due to various Banks and NBFC Hypothecation of Machinery and Vehicles: Rs. Nil (P.Y.Rs. 1,75,175/-) i. Due to:

1. Magma Finance Corporation Ltd: Rs.1,57,175/- (P.Y 1,57,175/-) secured by hypothecation of Nissan Terrona Car and Mahindra XUV Repayable in equated monthly installments. iii No default.

iv. Classified as :-Short Term Borrowings Rs. Nil (P.Y.Rs.1,57,175/-)

j. Term Loan due to various Banks and NBFC Hypothecation of Machinery and Vehicles: Rs,13,30,866/- (P.Y.Rs. Nil)

i. Due to

:1.TVS Credit Services Limited Rs.13,30,866/- (P.Y Nil) secured by hypothecation of Nissan Terrona Car and Mahindra XUV Repayable in equated monthly installments. iii No default.

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Mar 31, 2015

A. RECOGNITION OF INCOME:

a. Value of Contract completed is accounted as sales/income on raising of invoices on the basis of value of works completed as certified by the architects.

b. In the case of sales of Apartments under construction by the company of its own:

i. Value of sales of undivided share of title and interest in the land are accounted on execution of the agreement to sell.

ii. The values receivable towards the construction of the apartments under the construction agreement are accounted on the basis of the proportionate value determined and invoiced on the basis of certificate of the value of the works completed.

iii. The proportionate cost of construction apportioned to the apartments not yet sold as at the year-end are reckoned as work in progress at cost.

c. In case of sale of Apartments under construction by the company under joint development agreements:

i. Value of sale of company's share of undivided share of title and interest in land in cases where the agreement to sell is executed and the values receivables towards the construction of the Apartments under the construction agreements are accounted on the basis of the proportionate sale value realizable on total sale of company's share in the built up area in the same ratio as the total cost incurred would bear to the total estimated cost of construction of the project.

ii. The proportionate cost of the units in respect of which the agreement to sell is not yet executed are reckoned as work in progress at cost.

d. In respect of Sale of Railway Sleeper:

i. Sales are accounted at tendered price on dispatch of Railways Sleepers.

ii. The balance of the escalation will be accounted on availability of the latest applicable rates and as and when the company makes claims.

iii. Central Excise Duty recovered on sale of Railway Sleepers is recognized as income only to the extent of the modvat benefit entitled to be retained by the company in terms of the contract subsisting with the Indian Railways.

e. All other Sales revenues are accounted on accrual basis.

f. All incomes, to the extent they are ascertained, are accounted on accrual basis.

g. Incomes which are not ascertained and quantum whereof cannot be determined are accounted in the year in which the same are ascertained and determined or received, whichever is earlier.

B. EXPENDITURE RECOGNITION:

1. Purchases are accounted at cost on accrual basis excluding modvat credit, if any, available thereon.

2. Liabilities in respect of all expenditure are accounted on accrual basis.

3. The liability in respect of any other expenditure which are not easily ascertainable are accounted in the year in which such liabilities are either ascertained or actually paid whichever is earlier.

4. The liability in respect of levies payable in respect of the escalation in price on sale of Railway Sleepers are accounted as and when the quantum of the escalation in price is finally determined by the Railways.

5. Liability in respect of gratuity and leave encashment payable to employee's on retirement is estimated and provided for in the accounts on the basis of the liability on the company as at the last day of the accounting period.

C. INVENTORY VALUATION:

a. Work-in-progress of Housing projects are valued at cost as stated in 41 (A) (b)(iii) and 41 (A) (c)(ii) supra.

b. Land & repurchased flats held in stock are valued at cost.

c. Raw Materials of Railway Sleeper Project are valued at cost excluding central excise duty; and

d. Finished products and works in progress at railway sleeper project are valued at cost or net realizable value whichever is lower excluding central excise duty.

D . DEPRECIATION:

1. Up to financial year ended 31.3.2014 the depreciation on fixed assets is provided on Straight Line Method at the rates Specified in the specified in schedule XIV to the Companies Act, 1956.

2. For financial year 2014-2015 the depreciation on fixed assets is provided on estimated useful life as specified in schedule II to the Companies Act, 2013..

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Mar 31, 2014

A. RECOGNITION OF INCOME:

a. Value of Contract completed is accounted as sales/income on raising of invoices on the basis of value of works completed as certified by the architects.

b. In the case of sales ofApartments under construction by the company of its own:

i. Value of sales of undivided share of title and interest in the land are accounted on execution of the agreement to sell.

ii. The values receivable towards the construction of the apartments under the construction agreement are accounted on the basis of the proportionate value determined and invoiced on the basis of certificate of the value of the works completed.

iii. The proportionate cost of construction apportioned to the apartments not yet sold as at the year-end are reckoned as work in progress at cost.

c. In case of sale of Apartments under construction by the company under joint development agreements:

i. Value of sale of company''s share of undivided share of title and interest in land in cases where the agreement to sell is executed and the values receivables towards the construction of the Apartments under the construction agreements are accounted on the basis of the proportionate sale value realizable on total sale of company''s share in the built up area in the same ratio as the total cost incurred would bear to the total estimated cost of construction of the project.

ii. The proportionate cost of the units in respect of which the agreement to sell is not yet executed are reckoned as work in progress at cost.

d. In respect of Sale of Railway Sleeper:

i. Sales are accounted at tendered price on dispatch of Railways Sleepers.

ii. The balance of the escalation will be accounted on availability of the latest applicable rates and as and when the company makes claims.

iii. Central Excise Duty recovered on sale of Railway Sleepers is recognized as income only to the extent of the modvat benefit entitled to be retained by the company in terms of the contract subsisting with the Indian Railways.

e. All other Sales revenues are accounted on accrual basis.

f. All incomes, to the extent they are ascertained, are accounted on accrual basis.

g. Incomes which are not ascertained and quantum whereof can not be determined are accounted in the year in which the same are ascertained and determined or received, which ever is earlier.

B. EXPENDITURE RECOGNITION:

1. Purchases are accounted at cost on accrual basis excluding modvat credit, if any, available thereon.

2. Liabilities in respect of all expenditure are accounted on accrual basis.

3. The liability in respect of any other expenditure which are not easily ascertainable are accounted in the year in which such liabilities are either ascertained or actually paid which ever is earlier.

4. The liability in respect of levies payable in respect of the escalation in price on sale of Railway Sleepers are accounted as and when the quantum of the escalation in price is finally determined by the Railways.

5. Liability in respect of gratuity and leave encashment payable to employee''s on retirement is estimated and provided for in the accounts on the basis of the liability on the company as at the last day of the accounting period.

C. INVENTORY VALUATION:

a. Work-in-progress of Housing projects are valued at cost as stated in 41 (A) (b)(iii) and 41 (A) (c)(ii) supra.

b. Land & repurchased flats held in stock are valued at cost.

c. Raw Materials of Railway Sleeper Project are valued at cost excluding central excise duty; and

d. Finished products and works in progress at railway sleeper project are valued at cost or net realizable value whichever is lower excluding central excise duty.

D. DEPRECIATION:

Depreciation on fixed assets is provided on Straight Line Method at the rates Specified in schedule

XIV to the Companies Act, 1956, on prorate basis.

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Mar 31, 2013

A. RECOGNITION OF INCOME:

a. Value of Contract completed is accounted as sales/income on raising of invoices on the basis of value of works completed as certified by the architects.

b. In the case of sales of Apartments under construction by the company of its own:

i. Value of sales of undivided share of title and interest in the land are accounted on execution of the agreement to sell.

ii. The values receivable towards the construction of the apartments under the construction agreement are accounted on the basis of the proportionate value determined and invoiced on the basis of certificate of the value of the works completed.

iii. The proportionate cost of construction apportioned to the apartments not yet sold as at the year-end are reckoned as work in progress at cost.

c. In''.case of sale of Apartments under construction by the company under joint development agreements:

i. Value of sale of company''s share of undivided share of title and interest in land in cases where the agreement to sell is executed and the values receivables towards the construction of the Apartments under the construction agreements are accounted on the basis of the proportionate sale value realizable on total sale of company''s share in the built up area in the same ratio as the total cost incurred would bear to the total estimated cost of construction of the project.

ii. The proportionate cost of the units in respect of which the agreement to sell is not yet executed are reckoned as work in progress at cost.

d. In respect of Sale of Railway Sleeper:

i. Sales are accounted at tendered price on dispatch of Railways Sleepers. ii. The balance of the escalation will be accounted on availability of the latest applicable rates and as and when the company makes claims.

iii. Central Excise Duty recovered o^ sa e c* Ra Kvay Sleepers is recognized as income only to the extent of the —-".a: ce^e~t entitled to be retained by the company in terms of the contract surest ng wt- the Indian Railways.

e. All other Sales revenues are accounted on accrual basis.

f. All incomes, to the extent they are ascertained, are accounted on accrual basis.

g. Incomes which are not ascertained and quantum whereof can not be determined are accounted in the year in which the same are ascertained and determined or received, which ever is earlier.

B. EXPENDITURE RECOGNITION:

1. Purchases are accounted at cost on accrual basis excluding modvat credit, if any, available thereon.

2. Liabilities in respect of all expenditure are accounted on accrual basis.

3. The liability in respect of any other expenditure which are not easily ascertainable are accounted in the year in which such liabilities are either ascertained or actually paid which ever is earlier.

4. The liability in respect of levies payable in respect of the escalation in price on sale of Railway Sleepers are accounted as and when the quantum of the escalation in price is finally determined by the Railways.

5. Liability in respect of gratuity and leave encashment payable to employee''s on retirement is estimated and provided for in the accounts on the basis of the liability on the company as at the last day of the accounting period.

C. INVENTORY VALUATION:

a. Work-in-progress of Housing projects are valued at cost as stated in 41 (A) (b)(iii) and 41 (A) (c)(ii) supra.

b. Land & repurchased flats held in stock are valued at cost.

c. Raw Materials of Railway Sleeper Project are valued at cost excluding central excise duty; and

d. Finished products and works in progress at railway sleeper project are valued at cost or net realizable value whichever is lower excluding central excise duty.

D. DEPRECIATION:

Depreciation on fixed assets is provided on Straight Line Method at the rates Specified in schedule XIV to the Companies Act, 1956, on prorate basis.

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Mar 31, 2012

A. RECOGNITION OF INCOME:

a. Value of Contract completed is accounted as sales/income on raising of invoices on the basis of value of works completed as certified by the architects.

b. In the case of sales of Apartments under construction by the company of its own:

i. Value of sales of undivided share of title and interest in the land are accounted on execution of the agreement to sell.

ii. The values receivable towards the construction of the apartments under the construction agreement are accounted on the basis of the proportionate value determined and invoiced on the basis of certificate of the value of the works completed.

iii. The proportionate cost of construction apportioned to the apartments not yet sold as at the year-end are reckoned as work in progress at cost.

c. In case of sale of Apartments under construction by the company under joint development agreements:

i. Value of sale of company's share of undivided share of title and interest in land in cases where the agreement to sell is executed and the values receivables towards the construction of the Apartments under the construction agreements are accounted on the basis of the proportionate sale value realizable on total sale of company's share in the built u p area in the same ratio as the total cost incurred would bear to the total estimated cost of construction of the project.

ii. The proportionate cost of the units in respect of which the agreement to sell is not yet executed are reckoned as work in progress at cost.

d. In respect of Sale of Railway Sleeper:

i. Sales are accounted at tendered price on dispatch of Railways Sleepers.

ii. The balance of the escalation will be accounted on availability of the latest applicable rates and as and when the company makes claims.

iii. Central Excise Duty recovered on sale of Railway Sleepers is recognized as income only to the extent of the modvat benefit entitled to be retained by the company in terms of the contract subsisting with the Indian Railways.

e. All other Sales revenues are accounted on accrual basis.

f. All incomes, to the extent they are ascertained, are accounted on accrual basis.

g. Incomes which are not ascertained and quantum whereof can not be determined are accounted in the year in which the same are ascertained and determined or received, which ever is earlier.

B. EXPENDITURE RECOGNITION:

1. Purchases are accounted at cost on accrual basis excluding modvat credit, if any, available thereon.

2. Liabilities in respect of all expenditure are accounted on accrual basis.

3. The liability in respect of any o ther expenditure which are not easily ascertainable are accounted in the year in which such liabilities are either ascertained or actually paid which ever is earlier.

4. The liability in respect of levies payable in respect of the escalation in price on sale of Railway Sleepers are accounted as and when the quantum of the escalation in price is finally determined by the Railways.

5. Liability in respect of gratuity and leave encashment payable to employee's on retirement is estimated and provided for in the accounts on the basis of the liability on the company as at the last day of the accounting period.

C. INVENTORY VALUATION:

a. Work-in-progress of Housing projects are valued at cost as stated in 18 (A) (b)(iii) and 18(A) (c)(ii) supra.

b. Land & repurchased flats held in stock are valued at cost.

c. Raw Materials of Railway Sleeper Project are valued at cost excluding central excise duty; and

d. Finished products and works in progress at railway sleeper project are valued at cost or net realizable value whichever is lower excluding central excise duty.

D. DEPRECIATION:

Depreciation on fixed assets is provided on Straight Line Method at the rates Specified in schedule XIV to the Companies Act, 1956, on prorate basis.

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Mar 31, 2010

A. RECOGNITION OF INCOME:

a. Value of Contracts completed is accounted as sales/income on raising of invoices on the basis of value of works completed as certified by the architects.

b. In the case of sales of Apartments under construction by the company of its own:

i. Value of sales of undivided share of title and interest in the land are accounted on execution of the agreement to sell.

ii. The values receivable towards the construction of the apartments under the construction agreement are accounted on the basis of the proportionate value determined and invoiced on the basis of certificate of the value of the works completed.

iii. The proportionate cost of construction apportioned to the apartments not yet sold as at the year-end are reckoned as work in progress at cost.

c. In case of sale of Apartments under construction by the company under joint development agreements:

i. Value of sale of companys share of undivided share of title and interest in land in cases where the agreement to sell is executed and the values receivables towards the construction of the Apartments under the construction agreements are accounted on the basis of the proportionate sale value realizable on total sale of companys share in the built up area in the same ratio as the total cost incurred would bear to the total estimated cost of construction of the project.

ii. The proportionate cost of the units in respect of which the agreement to sell is not yet executed are reckoned as work in progress at cost.

d. In respectofSaleof Railway Sleeper:

i. Sales are accounted at tendered price on dispatch of Railways Sleepers.

ii. The balance of the escalation will be accounted on availability of the latest applicable rates and as and when the company makes claims.

iii. Central Excise Duty recovered on sale of Railway Sleepers is recognized as income only to the extent of the modvat benefit entitled to be retained by the company in terms of the contract subsisting with the Indian Railways.

e. All other Sales revenues are accounted on accrual basis.

f. All incomes, to the extent they are ascertained, are accounted on accrual basis.

g. Incomes which are not ascertained and quantum whereof can not be determined are accounted in the year in which the same are ascertained and determined or received, which ever is earlier.

B. EXPENDITURE RECOGNITION:

1. Purchases are accounted at cost on accrual basis excluding modvat credit, if any, available thereon.

2. Liabilities in respect of all expenditure are accounted on accrual basis.

3. The liability in respect of any other expenditure which are not easily ascertainable are accounted in the year in which such liabilities are either ascertained or actually paid which ever is earlier.

4. The liability in respect of levies payable in respect of the escalation in price on sale of Railway Sleepers are accounted as and when the quantum of the escalation in price isfinally determined by the Railways.

5. Liability in respect of gratuity and leave encashment payable to employees on retirement is estimated and provided for in the accounts on the basis of the liability on the company as at the last day of the accounting period.

C. INVENTORY VALUATION:

a. Work-in-progress of Housing projects are valued at cost as stated in 19 (A) (b)(iii) and 19(A) (c)(ii) supra.

b. Land & repurchased flats held in valued at cost.

c. Raw Materials of Railway Sleeper Project are valued at cost excluding central excise duty; and

d. Finished products and works in progress at railway sleeper project are valued at cost or net realizable value whichever is lower excluding central excise duty.

D. DEPRECIATION:

Depreciation on fixed assets is provided on Straight Line Method at the rates Specified in schedule XIV to the Companies Act, 1956, on prorate basis.

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Mar 31, 2001

A. RECOGNITION OF INCOME:

a. Value of Contracts completed are accounted as sales/ income on raising of invoice on the basis of value of works completed as certified by the architects.

b. In the case of sales of Apartments under construction by the company of its own:

i) Value of sales of undivided share of title and interest in the land are accounted on execution of the agreement to sell.

ii) The values receivable towards the construction of the apartments under the construction agreement are accounted on the basis of the proportionate value determined and invoiced on the basis of certificate of the value of the works completed.

iii) The proportionate cost of construction apportioned to the apartments not yet sold as at the year end are reckoned as work in progress at cost.

c. In case of sale of Apartments under construction by the company under joint development agreements:

i) Value of sale of companys share of undivided share of title and interest in the land in cases where the

agreement to sell is executed and the values receivable towards the construction of the Apartments under the construction agreements are accounted on the basis of the proportionate sale value realisable on total sale of companies share in the built up area in the same ratio as the total cost incurred would bear to the total estimated cost of construction of the project.

ii) The proportionate cost of the units in respect of which the agreement to sell is not yet executed are reckoned as work in progress at cost.

d. In respect of sale of Railway Sleeper

i) Sale are accounted at tendered price on despatch of RBI Railway Sleeper.

ii) Escalation in price are accounted on the basis of the index rates as at 31.3.99.

iii) The balance of the escalation will be accounted on availability of the latest applicable rates and as and when claims are made by the company.

iv) Central Excise Duty recovered on sale of Railway sleepers is recognised as income only to the extent of the modvat benefit entitled to be retained by the company in terms of contract subsisting with the Indian Railway.

e. Income from sale of other goods are accounted on accrual basis.

f. Other incomes like interest on deposits, dividends, Rents etc are accounted on accrual basis.

g. Incomes which, though accrued, cannot be quantified are accounted in the year in which the same quantified or received which ever is earlier.

B. EXPENDITURE:

a. Purchaser are accounted at cost on accrual basis excluding modavat credit, if any, available thereon.

b. Liabilities in respect of all expenditure are accounted on accrual basis.

c. The liability in respect of any other expenditure which are not easily ascertainable are accounted in the year in which such liabilities are either ascertained or actually paid which ever is earlier.

d. Liability in respect of gratuity payable to employee are accounted in the year in which the same are paid.

C. DEPRECIATION:

Depreciation on fixed assets is provided on straight line method at rates specified in schedule XIV to the Companies Act, 1956, on prorata basis.

D. INVENTORY VALUATION

a. Work-in-progress of Housing projects are valued at cost as are stated in b (iii) and c (iii) of A supra.

b. Land & repurchased flats held in stock are valued at cost;

c. Raw materials of Railway sleeper project are valued at cost excluding central excise duty; and

d. Finished products and works in process at railway sleeper project are valued at cost or net realizable value whichever is lower excluding central excise duty.

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Mar 31, 2000

(A) RECOGNITION OF INCOME

(a) Value of Contracts completed are accounted as sales / income on raising of invoice on the basis of value of works completed as certified by the architects.

(b) In the case of sales of Apartments under construction by the company of its own :

(i) Value of sales of undivided share of title and interest in the land are accounted on execution of the agreement to sell.

(ii) The values receivable towards the construction of the apartments under the constru- tion agreement are accounted on the basis of the proportionate value determined and invoiced on the basis of certificate of the value of the works completed.

(iii) The proportionate cost of construction apportioned to the apartments not yet sold as at the year end are reckoned as work in progress at cost.

(c) In case of sale of Apartments under construction by the company under joint development agreements :

(i) Value of sale of companys share of undivided share of title and interest in the land in cases where the agreement to sell is executed and the values receivable towards the construction of the Apartments under the construction agreements are accounted on the basis of the proportionate sale value realisable on total sale of companies share in the built up area in the same ratio as the total cost incurred would bear to the total estimated cost of construction of the project.

(ii) The proportionate cost of the units in respect of which the agreement to sell is not yet executed are reckoned as work in progress at cost.

(d) Income from sale of other goods are accounted on acrual basis.

(e) Other incomes like interest on deposits, dividends, Rents etc are accounted on acrual basis.

(f) Incomes which, though occured, cannot be quantified are accounted on acrual basis.

(g) Incomes which, though occured, cannot be quantified are accounted in the year in which the same quantified or received which ever is earlier.

(B) EXPENDITURE

(a) Purchaser are accounted at cost on acrual basis excluding modavat credit, if any, available thereon.

(b) Liabilities in respect all expenditure are accounted on acrual basis

(c) The liability in respect of any other expenditure which are not easily ascertainable are accounted in the year in which such liabilities are either ascertained or actually paid which ever is earlier.

(d) Liability in respect of gratuity payable to employee are accounted in the year in which the same are paid.

(C) DEPRECIATION:

Depreciation on fixed assets is provided on straight line method at rates specified in schedule XIV to the Companies Act, 1956, on prorata basis.

(D) INVENTORIES

(a) Inventories of Housing projects and contracts are valued at cost.

(b) Inventories of Railway Sleepers project are valued as under:

(i) Raw materials are valued at cost.

(ii) Works in process are valued at cost

(iii) Finished goods are valued at cost or net realisable value which ever is lower.

(c) That wherever modavat credit is applicable the cost of inventories are ascertain excluding the modavat credit available thereon.