Accounting Policies of Gyan Developers & Builders Ltd. Company

Mar 31, 2015

A. Basis of accounting:

The financial statements have been prepared to comply in all material aspects with the notified accounting standards by Companies Accounting Standards Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 2013. The financial statements are prepared under the historical cost convention and income and expenses are accounted for on an accrual basis, in accordance with the accounting principles generally accepted in India. The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year.

B. Events Occurring After the Date of Balance Sheet:

Material events occurring after the date of Balance Sheet are taken into cognizance.

C. Revenue Recognition:

Income from Operations:

Income from Operations is determined as the aggregate during the period of the increase in land development cost, Service charges & sale of land. During the year there is no revenue generated from Increase in land development cost and Service charges.

(a) Increase in Land Development Cost

Increase in Land Development cost is the difference between the amount received from Prospective buyer and amount paid to the vendor at initial stage.

(b) Service charges

Service Charges is the nature of income which is generated from making out the deal between the land seller and prospective buyer.

(c) Revenue from Sale of Land

Revenue from Sale of land is the difference between the cost of land purchased (inclusive of stamp duty and other charges) and Sale value of the land.

D. Fixed Assets:

Expenditure which is of a capital nature is capitalised at cost which comprises purchase price (net of rebates and discounts), statutory levies and other expenses/charges directly expended in acquiring such assets.

E. Impairment:

The company assesses at each balance sheet date whether there is any indication that an asset may be impaired. If any such indication exists, then impairment loss is recognised wherever the carrying amount of an asset is in excess of its recoverable amount and the same is recognized as an expenses in the statement of profit and loss and carrying amount of the asset is reduced to its recoverable amount.

Reversal of impairment losses recognised in prior years is recorded when there is an indication that the impairment losses recognized for the asset no longer exist or have decreased.

F. Depreciation:

Depreciation is provided from the date on which assets have been installed and put to use on Written down Value method at the rates specified under Schedule II to the Companies Act, 2013. Depreciation is provided from the date of capitalization till the date of sale of assets. According to the circular No. 14, dated 20-12-1993, depreciation on assets, whose actual cost does not exceed five thousand rupees have been provided at the rate of hundred percent. Depreciation is not provided on Land and building since these assets are not used in the business either for production, or supply of goods and services for rental to others or for administrative purposes.

G. Land Owner's Account:

Advance to land owners are reflected as the aggregate of amounts paid to them and amounts due from them, reduced by the amounts credited to them if the agreement is cancelled or due to any change in the cost of the land.

H. Inventories:

The inventories are valued at cost. Inventory of the Company comprises of Lands purchased. Cost of the inventory shall also include the land development expenses incurred by the Company. Land development expenses are incurred for leveling of the land which is incidental for selling of the land.

I. Recognition of Income and Expenditure:

Income and expenditure are recognised on accrual basis and provision is made for all known expenses.

J. Borrowing Costs

There are no borrowing costs attributable to the acquisition or construction of assets. Other borrowing costs are recognised as expenses in the period in which they are incurred.

K. Taxation

Tax expense comprises current tax and deferred tax.

The accounting treatment for income-tax in respect of company's income is based on the Accounting Standard 22 on 'Accounting for Taxes on Income' issued by the Institute of Chartered Accountants of India. Provision for current income-tax is made in accordance with the Income- tax Act, 1961.

Deferred tax assets and liabilities are recognized at substantively enacted tax rates, subject to the consideration of prudence, on timing difference, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

L. Employee Benefits:

A. Short term Employee Benefits

All Short term employee benefits payable including salaries and other allowances are recognized on accrual basis, in the manner provided in AS 15.

B. Other Long Term Employee Benefits

No provision has been made for leave encashment retirement benefit for the period as the terms of employment does not provide for such obligation on the company.

C. Post Employment Benefits

(1) Defined Contribution Plans

No provision has been made for Provident Fund and other Superannuation benefits as the respective Acts are not applicable to the company.

(2) Defined Benefit Plans

No provision has been made for Gratuity liability for the period as the respective Acts are not applicable to the company.

M. Earning Per Share:

The earning considered in ascertaining the Company's earning Per Share ('EPS') comprise the net profit after tax. The number of shares used in computing basic EPS is the weighted average number of shares outstanding during the year. The diluted EPS is calculated on the same basis as basic EPS, after adjusting for the effects of potential dilutive equity shares unless impact is anti dilutive.

N. Provisions and Contingent Liabilities:

Provisions are recognized when the company has a present obligation as a result of past event; it is more likely than not that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made based on technical evaluation and past experience. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates. Contingent Liabilities are not provided for in the accounts and are disclosed by way of Notes.

O. Cash Flow Statement:

Cash Flow Statement has been prepared under indirect method, as prescribed in Accounting Standard 3. Cash and Cash Equivalents comprise Cash on Hand, current and other accounts held with Banks.

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Mar 31, 2014

A. Basis of accounting:

The financial statements have been prepared to comply in all material aspects with the notified accounting standards by Companies Accounting Standards Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements are prepared under the historical cost convention and income and expenses are accounted for on an accrual basis, in accordance with the accounting principles generally accepted in India. The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year.

B. Events Occurring After the Date of Balance Sheet:

Material events occurring after the date of Balance Sheet are taken into cognizance.

C. Revenue Recognition:

Income from Operations:

Income from Operations is determined as the aggregate during the period of the increase in land development cost, Service charges & sale of land. During the year there is no revenue generated from Increase in land development cost and Service charges.

(a) Increase in Land Development Cost

Increase in Land Development cost is the difference between the amount received from Prospective buyer and amount paid to the vendor at initial stage.

(b) Service charges

Service Charges is the nature of income which is generated from making out the deal between the land seller and prospective buyer.

(c) Revenue from Sale of Land

Revenue from Sale of land is the difference between the cost of land purchased (inclusive of stamp duty and other charges) and Sale value of the land.

D. Fixed Assets:

Expenditure which is of a capital nature is capitalised at cost which comprises purchase price (net of rebates and discounts), statutory levies and other expenses/charges directly expended in acquiring such assets.

E. Impairment:

The company assesses at each balance sheet date whether there is any indication that an asset may be impaired. If any such indication exists, then impairment loss is recognised wherever the carrying amount of an asset is in excess of its recoverable amount and the same is recognized as an expenses in the statement of profit and loss and carrying amount of the asset is reduced to its recoverable amount.

Reversal of impairment losses recognised in prior years is recorded when there is an indication that the impairment losses recognized for the asset no longer exist or have decreased.

F. Depreciation:

Depreciation is provided from the date on which assets have been installed and put to use on Written down Value method at the rates specified under Schedule XIV to the Companies Act, 1956. Depreciation is provided from the date of capitalization till the date of sale of assets. According to the circular No. 14, dated 20-12-1993, depreciation on assets, whose actual cost does not exceed five thousand rupees have been provided at the rate of hundred percent. Depreciation is not provided on Land and building since these assets are not used in the business either for production, or supply of goods and services for rental to others or for administrative purposes.

G. Land Owner''s Account:

Advance to land owners are reflected as the aggregate of amounts paid to them and amounts due from them, reduced by the amounts credited to them if the agreement is cancelled or due to any change in the cost of the land.

H. Inventories:

The inventories are valued at cost. Inventory of the Company comprises of Lands purchased. Cost of the inventory shall also include the land development expenses incurred by the Company. Land development expenses are incurred for leveling of the land which is incidental for selling of the land.

I. Recognition of Income and Expenditure:

Income and expenditure are recognised on accrual basis and provision is made for all known expenses.

J. Borrowing Costs

There are no borrowing costs attributable to the acquisition or construction of assets. Other borrowing costs are recognised as expenses in the period in which they are incurred.

K. Taxation

Tax expense comprises current tax and deferred tax.

The accounting treatment for income-tax in respect of company''s income is based on the Accounting Standard 22 on ''Accounting for Taxes on Income'' issued by the Institute of Chartered Accountants of India. Provision for current income-tax is made in accordance with the Income- tax Act, 1961.

Deferred tax assets and liabilities are recognized at substantively enacted tax rates, subject to the consideration of prudence, on timing difference, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

L. Employee Benefits:

a. Short term Employee Benefits

All Short term employee benefits payable including salaries and other allowances are recognized on accrual basis, in the manner provided in AS 15.

b. Other Long Term Employee Benefits

No provision has been made for leave encashment retirement benefit for the period as the terms of employment does not provide for such obligation on the company.

c. Post Employment Benefits

(1) Defined Contribution Plans

No provision has been made for Provident Fund and other Superannuation benefits as the respective Acts are not applicable to the company.

(2) Defined Benefit Plans

No provision has been made for Gratuity liability for the period as the respective Acts are not applicable to the company.

M. Earning Per Share:

The earning considered in ascertaining the Company''s earning Per Share (''EPS'') comprise the net profit after tax. The number of shares used in computing basic EPS is the weighted average number of shares outstanding during the year. The diluted EPS is calculated on the same basis as basic EPS, after adjusting for the effects of potential dilutive equity shares unless impact is anti dilutive.

N. Provisions and Contingent Liabilities:

Provisions are recognized when the company has a present obligation as a result of past event; it is more likely than not that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made based on technical evaluation and past experience. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates. Contingent Liabilities are not provided for in the accounts and are disclosed by way of Notes.

O. Cash Flow Statement:

Cash Flow Statement has been prepared under indirect method, as prescribed in Accounting Standard 3. Cash and Cash Equivalents comprise Cash on Hand, current and other accounts held with Banks.

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Mar 31, 2013

A. Basis of accounting:

The financial statements have been prepared to comply in all material aspects with the notified accounting standards by Companies Accounting Standards Rules, 2006 {as amended) and the relevant provisions of the Companies Act, 1956. The financial statements are prepared under the historical cost convention and income and expenses are accounted for on an accrual basis, in accordance with the accounting principles generally accepted in India. The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year.

B. Events Occurring After the Date of Balance Sheet:

Material events occurring after the date of Balance Sheet are taken into cognizance.

C. Revenue Recognition:

Income from Operations:

Income from Operations is determined as the aggregate during the period of the project promotion fee earned, value of the construction work done, increase in land development cost, sale of land and the proceeds from the demolition contracts.

(a) Project Promotion Fee:

Project promotion fee is the fee charged to the customers on allotment of flats at the specific rate per square foot of built up area to be constructed, in consideration of the various services rendered by the company for promoting the respective projects. Project promotion receipts include sale of land to the customers,

(b) Value of Construction Work:

The value of construction work done during the year is determined as follows:

i. In the case of projects completed during the year, it is the difference between the value of construction to the customers on completion of the project and the value of construction to the customers at the beginning of the accounting year.

ii. In the case of projects in progress at the close of the accounting period, it is the difference between the value of construction to the customers determined at the close of the accounting period and the value of construction to the customers at the beginning of the accounting period.

iii. Value of construction to the customers in respect of completed projects is the full value that is paid /payable by the customers for the project on this account.

iv. Value of construction to the customers in respect of projects in progress at the beginning of the accounting period and at the close of the accounting period is the value of work-in-progress on those dates respectively.

(c) Demolition Proceeds:

Demolition proceeds for the period is the aggregate sum stated as consideration in the demolition agreements executed during the period, for demolition of existing structures on the properties taken up for development by the company.

(d) Increase in Land Development Cost

Increase in Land Development cost is the difference between the amount received from Prospective buyer and amount paid to the vendor at initial stage.

(e) Service charges

Service Charges is the nature of income which is generated from making out the deal between the and seller and prospective buyer.

(f) Revenue from Sale of Land

Revenue from Sale of land is the difference between the cost of land purchased (inclusive of stamp duty and other charges) and Sale value of the land.

D. Fixed Assets:

Expenditure which is of a capital nature is capitalized at cost which comprises purchase price (net of rebates and discounts), statutory levies and other expenses/charges directly expended in acquiring such assets.

E. Intangible Assets:

There are no Intangible Assets of the Company.

F. Impairment:

The company assesses at each balance sheet date whether there is any indication that an asset may be impaired. If any such indication exists, then impairment loss is recognized wherever the carrying amount of an asset is in excess of its recoverable amount and the same is recognized as an expenses in the statement of profit and loss and carrying amount of the asset is reduced to its recoverable amount.

Reversal of impairment losses recognized in prior years is recorded when there is an indication that the impairment losses recognized for the asset no longer exist or have decreased.

G. Depreciation:

Depreciation is provided from the date on which assets have been installed and put to use on Written down Value method at the rates specified under Schedule XIV to the Companies Act, 1956. Depreciation is provided from the date of capitalization till the date of sale of assets. According to the circular No. 14, dated 20-12-1993, depreciation on assets, whose actual cost does not exceed five thousand rupees have been provided at the rate of hundred percent. Depreciation is not provided on Land and building.

H. Work - in - Progress:

Work - in - Progress in respect of each project in progress is first valued at the close of the accounting year at the aggregate of the cost of materials consumed, lab our charges and the other expenditure incurred on the project. Thereafter the adjustment for value addition is made on the following basis:

i. Where the actual expenditure incurred up to the end of the accounting year in a project is between 30% and 89% of its total estimated expenditure, and this total expenditure is less than its total estimated revenue, value addition is determined as 2/3rds of the proportionate estimated surplus (such proportion being the percentage of actual expenditure to total estimated expenditure). Where however the actual expenditure of a project up to the close of the accounting year is above 89% of the total estimated expenditure of the project, value addition is determined as the 4/5th of the proportionate estimated surplus (such proportion being the percentage of actual expenditure to total estimated expenditure)

ii. Where total estimated expenditure of a project is in excess of its total estimated revenue, the entire actual expenditure comprising of the cost of the material consumed, labour and other expenditure incurred on the project is considered as the value of work-in- progress till the project is completed.

I. Land Owner''s Account:

Amounts due from customers towards land cost are debited to their accounts on the land cost falling due under the agreements of the project promotion and construction are credited to the respective land owner''s accounts. Advance to land owners are reflected as the aggregate of amounts paid to them and amounts due from them, reduced by the amounts credited to them as aforesaid.

J. Inventories:

The inventories are valued at cost.

K. Recognition of Income and Expenditure:

Income and expenditure are recognized on accrual basis and provision is made for all known expenses.

L. Borrowing Costs

There are no borrowing costs attributable to the acquisition or construction of assets. Other borrowing costs are recognized as expenses in the period in which they are incurred.

M. Taxation

Tax expense comprises current tax and deferred tax.

The accounting treatment for income-tax in respect of company''s income is based on the Accounting Standard 22 on Accounting for Taxes on Income1 issued by the Institute of Chartered Accountants of India. Provision for current income-tax is made in accordance with the Income- tax Act, 1961.

Deferred tax assets and liabilities are recognized at substantively enacted tax rates, subject to the consideration of prudence, on timing difference, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

N. Employee Benefits:

a. Short term Employee Benefits

All Short term employee benefits payable including salaries and other allowances are recognized on accrual basis, in the manner provided in AS 15.

b. Other Long Term Employee Benefits

No provision has been made for leave encashment retirement benefit for the period as the terms of employment does not provide for such obligation on the company.

c. Post Employment Benefits

(1) Defined Contribution Plans

No provision has been made for Provident Fund and other Superannuation benefits as the respective Acts are not applicable to the company.

(2) Defined Benefit Plans

No provision has been made for Gratuity liability for the period as the respective Acts are not applicable to the company.

0. Earnings Per Share:

The earning considered in ascertaining the Company''s earnings Per Share (''EPS'') comprise the net profit after tax. The number of shares used in computing basic EPS is the weighted average number of shares outstanding during the year. The diluted EPS is calculated on the same basis as basic EPS, after adjusting for the effects of potential dilutive equity shares unless impact is anti dilutive.

P. Provisions and Contingent Liabilities:

Provisions are recognized when the company has a present obligation as a result of past event; it is more likely than not that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made based on technical evaluation and past experience. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates. Contingent Liabilities are not provided for in the accounts and are disclosed by way of Notes.

Q. Cash Flow Statement:

Cash Flow Statement has been prepared under indirect method, as prescribed in Accounting Standard 3 issued by The Institute of Chartered Accountants of India. Cash and Cash Equivalents comprise Cash on Hand, current and other accounts held with Banks.

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Mar 31, 2012

A. Basis of accounting:

The financial statements have been prepared to comply in all material aspects with the notified accounting standards by Companies Accounting Standards Rules' 2006 (as amended) and the relevant provisions of the Companies Act' 1956. The financial Statements are prepared under the historical cost convention and income and expenses are accounted for on an accrual basis' in accordance with the accounting principles generally accepted in India. The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year.

B. Events Occurring After the Date of Balance Sheet:

Material events occurring after the date of Balance Sheet are taken into cognizance.

C. Revenue Recognition:

Income from Operations:

Income from Operations is determined as the aggregate during the period of the project promotion fee earned' value of the construction work done' increase in land development cost' sale of land and the proceeds from the demolition contracts.

(a) Project Promotion Fee:

Project promotion fee is the fee charged to the customers on allotment of flats at the specific rate per square foot of built up area to be constructed' in consideration of the various services rendered by the company for promoting the respective projects. Project * promotion receipts include sale of land to the customers.

(b) Value of Construction Work:

The value of construction work done during the year is determined as follows:

i. In the case of projects completed during the year' it is the difference between the value of construction to the customers on completion of the project and the; value of construction to the customers at the beginning of the accounting year'

ii. In the case of projects in progress at the close of the accounting period' it is the difference between the value of construction to the customers determined at the close of the accounting period and the value of construction to the customers at the beginning of the accounting period.

iii. Value of construction to the customers in respect of completed projects is the full value that is paid /payable by the customers for the project on this accourt.

iv. Value of construction to the customers in respect of projects in progress at the beginning of the accounting period and at the close of the accounting period is the value of work-in-progress on those dates respectively.

(c) Demolition Proceeds:

Demolition proceeds for the period is the aggregate sum stated as consideration in the '-——— demolition agreements executed during the period' for demolition of existing structures on the properties taken up for development by the company.

(d) Increase in Land Development Cost

Increase in Land Development cost is the difference between the amount received from Prospective buyer and amount paid to the vendor at initial stage.

(e) Service charges

Service Charges is the nature of income which is generated from making out the deal between the land seller and prospective buyer'

(1) Revenue from Sale of Land

Revenue from Sale of land is the difference between the cost of land purchased (inclusive of stamp duty and other charges) and Sale value of the land.

D. Fixed Assets:

Expenditure which is of a capita! nature is capitalised at cost which comprises purchase price (net of rebates and discounts)' statutory levies and other expenses/charges directly expended in acquiring such assets.

E. Intangible Assets:

There are no Intangible Assets of the Company.

F. Impairment:

The company assesses at each balance shee* date whether there is any indication that an asset may be impaired. If any such indication exists' then impairment loss is recognised wherever the carrying amount of an asset is in excess of its recoverable amount and the same is recognized as an expenses in the statement of profit and loss and carrying amount of the asset is reduced to its recoverable amount.

Reveisal of impairment losses recognised in prior years is recorded when there is an ind.cation ¦*

that the impairment losses recognized for the asset no longer exist or have decreased.

G. Depreciation:

Depreciation is provided from the date on which assets have been installed and put to jse on Written down Value method at the rates specified under Schedule XIV to the Compani3s Act' 1956. Depreciation is provided from the date of capitalization till the date of sale of assets. According to the circular No. 14' dated 20-12-1993' depreciation on assets' whose actual cost does not exceed five thousand rupees have been provided at the rate of hundred percent. Depr jciation is not provided on Land and building.

H.''" Work - In - Progress:

Work - in - Progress in respect of each project in progress is first valued at the close of the accojnting year at the aggregate of the cost of materials consumed' labour charges and the other expenditure incurred on the project. Thereafter the adjustment for value addition is made on the following basis:

i. Where the actual expenditure incurred up to the end of the accounting year in a project is between 30% and 89% of its total estimated expenditure' and this total expenditure is less than its total estimated revenue' value addition is determined as 2/3rds of the propolionate estimated surplus (such proportion being the percentage of actual expenditure to total estimated expenditure). Where however the actual expenditure of a project up to the close .- __ of the accounting year is above 89% of the total estimated expenditure of the project' value addition is determined as the 4/5th of the proportionate estimated surplus (such proportion being the percentage of actual expenditure to total estimated expenditure)

ii. Where total estimated expenditure of a project is inexcess of its total estimated revenue' the entire actual expenditure comprising of the cost of the material consumed' labour and other expenditure incurred on the project is considered as the value of work-in-progress till the project is completed.

I. Land Owner's Account:

Amounts due from customers towards land cost are debited to their accounts on the land cost falling due under the agreements of the project promotion and construction are credited to the respective land owner's accounts. Advance to land owners are reflected as the aggregate of amounts paid to them and amounts due from them' reduced by the amounts credited to them as aforesaid.

J. Inventories:

The inventories are valued at cost'

K. Recognition of Income and Expenditure:

Income and expenditure are recognised on accrual basis and provision is made for all known expenses.

L. Borrowing Costs

There are no borrowing costs attributable to the acquisition or construction of assets' Other borrowing costs are recognised as expenses in the period in which they are incurred.

M' Taxation

Tax expense comprises current tax and deferred tax

The accounting treatment for income-tax in respect of company's income is based on the Accounting Standard 22 on 'Accounting for Taxes on Income' issued by the Institute of Chartered Accountants of India. Provision for current income-tax is made in accordance with the Income- tax Act' 1961.

Deferred tax assets and liabilities are recognized at substantively enacted tax rates' subject to the consideration of prudence' on timing difference' being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

N. Employee Benefits:

a. Short term Employee Benefits

All Short term employee benefits payable including salaries and other allowances are recognized on accrual basis' in the manner provided in AS 15.

b. Other Long Term Employee Benefits

No provision has been made for leave encashment retirement benefit for the pe'iod as the terms of employment does not provide for such obligation on the company.

---

Mar 31, 2011

A. Basis of accounting;

The financial statements have been prepared to comply in all material aspects with the notified accounting standards by Companies Accounting Standards Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The financial Statements are prepared under the historical cost convention and income and expenses are accounted for on an accrual basis, in accordance with the accounting principles generally accepted in India. The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year

B. Events Occurring After the Date of Balance Sheet :

Material events occurring after the date of Balance Sheet are taken into cognizance,

C. Revenue Recognition:

Income from Operations:

Income from Operations is determined as the aggregate during the period of the project promotion fee earned, value of the construction work done, increase in land development cost and the proceeds from the demolition contracts, interest receipts and other income.

(a) Project Promotion Fee:

Project promotion fee is the fee charged to the customers on allotment of flats at the specific rate per square foot of built up area to be constructed, in consideration of the various services rendered by the company for promoting the respective projects. Project promotion receipts include sale of land to the customers.

(b) Value of Construction Work:

The value of construction work done during the year is determined as follows:

i. In the case of projects completed during the year, it is the difference between the value of construction to the customers on completion of the project and the value of construction to the customers at the beginning of the accounting year.

ii. In the case of projects in progress at the close of the accounting period, it is the difference between the value of construction to the customers determined at the close of the accounting period and the value of construction to the customers at the beginning of the accounting period.

iii. Value of construction to the customers in respect of completed projects is the full value that is paid /payable by the customers for the project on this account.

iv. Value of construction to the customers in respect of projects in progress at the beginning of the accounting period and at the close of the accounting period is the value of work-in-progress on those dates respectively.

(c) Demolition Proceeds:

Demolition proceeds for the period is the aggregate sum stated as consideration in the demolition agreements executed during the period, for demolition of existing structures on the properties taken up for development by the company.

D. Fixed Assets:

Expenditure which is of a capital nature is capitalised at cost which comprises purchase price (net of rebates and discounts), statutory levies and other expenses/charges directly expended in acquiring such assets.

E. Intangible Assets:

There are no Intangible Assets of the Company.

F. Impairment:

The company assesses at each balance sheet date whether there is any indication that an asset may be impaired. If any such indication exists, then impairment loss is recognised wherever the carrying amount of an asset is in excess of its recoverable amount and the same is recognized as an expenses in the statement of profit and loss and carrying amount of the asset is reduced to its recoverable amount.

Reversal of impairment losses recognised in prior years is recorded when there is an indication that the impairment losses recognized for the asset no longer exist or have decreased.

G. Depreciation:

Depreciation is provided from the date on which assets have been installed and put to use on Written down Value method at the rates specified under Schedule XIV to the Companies Act, 1956. Depreciation is provided from the date of capitalization till the date of sale of assets. According to the circular No. 14, dated 20-12-1993, depreciation on assets, whose actual cost does not exceed five thousand rupees have been provided at the rate of hundred percent. Depreciation is not provided on Land and building.

H. Work - in - Progress:

Work - in - Progress in respect of each project in progress is first valued at the close of the accounting year at the aggregate of the cost of materials consumed, labour charges and the other expenditure incurred on the project. Thereafter the adjustment for value addition is made on the following basis:

i. Where the actual expenditure incurred up to the end of the accounting year in a project is between 30% and 89% of its total estimated expenditure, and this total expenditure is less than its total estimated revenue, value addition is determined as 2/3rds of the proportionate estimated surplus (such proportion being the percentage of actual expenditure to total estimated expenditure). Where however the actual expenditure of a project up to the close of the accounting year is above 89% of the total estimated expenditure of the project, value addition is determined as the 4/5th of the proportionate estimated surplus {such proportion being the percentage of actual expenditure to total estimated expenditure)

ii. Where total estimated expenditure of a project is in excess of its total estimated revenue, the entire actual expenditure comprising of the cost of the material consumed, labour and other expenditure incurred on the project is considered as the value of work-in-progress till the project is completed.

I. Land Owner's Account:

Amounts due from customers towards land cost are debited to their accounts on the land cost falling due under the agreements of the project promotion and construction are credited to the respective land owner's accounts. Advance to land owners are reflected as the aggregate of amounts paid to them and amounts due from them, reduced by the amounts credited to them as aforesaid.

J. Inventories:

The inventories are valued at cost. K. Recognition of Income and Expenditure:

Income and expenditure are recognised on accrual basis and provision is made for all known expenses.

L. Borrowing Costs

There are no borrowing costs attributable to the acquisition or construction of assets. Other borrowing costs are recognised as expenses in the period in which they are incurred.

M. Taxation

Tax expense comprises current tax, deferred tax and fringe benefits tax.

The accounting treatment for income-tax in respect of company's income is based on the Accounting Standard 22 on 'Accounting for Taxes on Income' issued by the Institute of Chartered Accountants of India. Provision for current income-tax is made in accordance with the Income- tax Act, 1961.

Deferred tax assets and liabilities are recognized at substantively enacted tax rates, subject to the consideration of prudence, on timing difference, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

N. Employee Benefits:

a. Short term Employee Benefits

All Short term employee benefits payable including salaries and other allowances are recognized on accrual basis, in the manner provided in AS 15.

b. Other Long Term Employee Benefits

No provision has been made for leave encashment retirement benefit for the period as the terms of employment does not provide for such obligation on the company.

c. Post Employment Benefits

(1) Defined Contribution Plans

No provision has been made for Provident Fund and other Superannuation benefits as the respective Acts are not applicable to the company.

(2) Defined Benefit Plans

No provision has been made for Gratuity liability for the period as the respective Acts are not applicable to the company.

O. Earning Per Share :

The earning considered in ascertaining the Company's Earning Per Share ('EPS') comprise the net profit after tax. The number of shares used in computing basic EPS is the weighted average number of shares outstanding during the year. The diluted EPS is calculated on the same basis as basic EPSt after adjusting for the effects of potential dilutive equity shares unless impact is anti dilutive.

P. Provisions and Contingent Liabilities:

Provisions are recognized when the company has a present obligation as a result of past event; it is more likely than not that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made based on technical evaluation and past experience. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates. Contingent Liabilities are not provided for in the accounts and are disclosed by way of Notes.

Q. Cash Flow Statement:

Cash Flow Statement has been prepared under indirect method, as prescribed in Accounting Standard 3 issued by The Institute of Chartered Accountants of India. Cash and Cash Equivalents comprise Cash on Hand, current and other accounts held with Banks.

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Mar 31, 2010

A. Basis of accounting:

The financial statements have been prepared to comply in all material aspects with the notified accounting standards by Companies Accounting Standards Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The financial Statements are prepared under the historical cost convention and income and expenses are accounted for on an accrual basis, in accordance with the accounting principles generally accepted in India. The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year.

B. Events Occurring After the Date of Balance Sheet :

Material events occurring after the date of Balance Sheet are taken into cognizance.

C. Revenue Recognition:

Income from Operations:

Income from Operations is determined as the aggregate during the period of the project promotion fee earned, value of the construction work done, increase in land development cost and the proceeds from the demolition contracts, interest receipts and other income.

(a) Project Promotion Fee:

Project promotion fee is the fee charged to the customers on allotment of flats at the specific rate per square foot of built up area to be constructed, in consideration of the various services rendered by the company for promoting the respective projects. Project promotion receipts include sale of land to the customers.

(b) Value of Construction Work:

The value of construction work done during the year is determined as follows:

i. In the case of projects completed during the year, it is the difference between the value of construction to the customers on completion of the project and the value of construction to the customers at the beginning of the accounting year.

ii. In the case of projects in progress at the close of the accounting period, it is the difference between the value of construction to the customers determined at the close of the accounting period and the value of construction to the customers at the beginning of the accounting period.

iii. Value of construction to the customers In respect of completed projects is the full value that is paid /payable by the customers for the project on this account.

iv. Value of construction to the customers in respect of projects in progress at the beginning of the accounting period and at the close of the accounting period is the value of work-in-progress on those dates respectively.

{c) Demolition Proceeds:

Demolition proceeds for the period is the aggregate sum stated as consideration in the demolition agreements executed during the period, for demolition of existing structures on the properties taken up for development by the company.

D. Fixed Assets:

Expenditure which is of a capital nature is capitalised at cost which comprises purchase price (net of rebates and discounts), statutory levies and other expenses/charges directly expended in acquiring such assets.

E. Intangible Assets:

There are no Intangible Assets of the Company.

F. Impairment:

The company assesses at each balance sheet date whether there is any indication that an asset may be impaired. If any such indication exists, then impairment loss is recognised wherever the carrying amount of an asset is in excess of its recoverable amount and the same is recognized as an expenses in the statement of profit and loss and carrying amount of the asset is reduced to its recoverable amount.

Reversal of impairment losses recognised in prior years is recorded when there is an indication that the impairment losses recognized for the asset no longer exist or have decreased.

G. Depreciation:

Depreciation is provided from the date on which assets have been installed and put to use on Written down Value method at the rates specified under Schedule XIV to the Companies Act, 1956. Depreciation is provided from the date of capitalization till the date of sale of assets. According to the circular No. 14, dated 20-12-1993, depreciation on assets, whose actual cost does not exceed five thousand rupees have been provided at the rate of hundred percent. Depreciation is not provided on Land and building.

H. Work - In - Progress:

Work - in - Progress in respect of each project in progress is first valued at the close of the accounting year at the aggregate of the cost of materials consumed, labour charges and the other expenditure incurred on the project. Thereafter the adjustment for value addition is made on the following basis:

i. Where the actual expenditure incurred up to the end of the accounting year in a project is between 30% and 89% of its total estimated expenditure, and this total expenditure is less than its total estimated revenue, value addition is determined as 2/3rds of the proportionate estimated surplus (such proportion being the percentage of actual expenditure to total estimated expenditure). Where however the actual expenditure of a project up to the close of the accounting year is above 89% of the total estimated expenditure of the project, value addition is determined as the 4/5th of the proportionate estimated surplus (such proportion being the percentage of actual expenditure to total estimated expenditure)

ii. Where total estimated expenditure of a project is in excess of its total estimated revenue, the entire actual expenditure comprising of the cost of the material consumed, labour and other expenditure incurred on the project is considered as the value of work-in-progress till the project is completed.

I. Land Owners Account:

Amounts due from customers towards land cost are debited to their accounts on the land cost falling due under the agreements of the project promotion and construction are credited to the respective land owners accounts. Advance to land owners are reflected as the aggregate of

amounts paid to them and amounts due from them, reduced by the amounts credited to them as aforesaid.

J. Inventories:

The inventories are valued at cost.

K. Recognition of Income and Expenditure:

Income and expenditure are recognised on accrual basis and provision is made for all known expenses.

L. Borrowing Costs

There are no borrowing costs attributable to the acquisition or construction of assets. Other borrowing costs are recognised as expenses in the period in which they are incurred.

M. Taxation

Tax expense comprises current tax, deferred tax and fringe benefits tax.

The accounting treatment for income-tax in respect of companys income is based on the Accounting Standard 22 on Accounting for Taxes on Income issued by the Institute of Chartered Accountants of India. Provision for current income-tax is made in accordance with the Income- tax Act, 1961.

Deferred tax assets and liabilities are recognized at substantively enacted tax rates, subject to the consideration of prudence, on timing difference, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

Fringe Benefit Tax {FBT) is accounted for on the estimated value of fringe benefits for the period as per the related provisions of the Income-tax Act.

N. Employee Benefits:

A. Short term Employee Benefits

All Short term employee benefits payable including salaries and other allowances are recognized on accrual basis, in the manner provided in AS 15.

B. Other Long Term Employee Benefits

No provision has been made for leave encashment retirement benefit for the period as the terms of employment does not provide for such obligation on the company.

C. Posf Employment Benefits

(1) Defined Contribution Plans

No provision has been made for Provident Fund and other Superannuation benefits as the respective Act3 are not applicable to the company.

(2) Defined Benefit Plans

No provision has been made for Gratuity liability for the period as the respective Acts are not applicable to the company.

0. Earning Per Share :

The earning considered in ascertaining the Companys Earning Per Share (EPS) comprise the net profit after tax. The number of shares used in computing basic EPS is the weighted average number of shares outstanding during the year. The diluted EPS is calculated on the same basis as basic EPS, after adjusting for the effects of potential dilutive equity shares unless impact is anti dilutive.

P. Provisions and Contingent Liabilities:

Provisions are recognized when the company has a present obligation as a result of past event; it is more likely than not that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made based on technical evaluation and past experience. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates. Contingent Liabilities are not provided for in the accounts and are disclosed by way of Notes.

Q. Cash Flow Statement:

Cash Flow Statement has been prepared under indirect method, as prescribed in Accounting Standard 3 issued by The Institute of Chartered Accountants of India. Cash and Cash Equivalents comprise Cash on Hand, current and other accounts held with Banks.