Accounting Policies of Ansal Buildwell Ltd. Company

Mar 31, 2024

1. Corporate information

Ansal Buildwell Limited (“the Company**) was set up as a Company registered under the Companies Act, 1956. It was incorporated on December 29,1983. The Company is primarily engaged in the business of promotion, construction and development of integrated lownships.residentiol and commercial complexes, multi-storeyed buildings. Mats, houses, apartments etc.

The Company is a public limited company incorporated and domiciled in India. The address of its registered & corporate office is 118, UFF, Prakashdeep, 7 Tolstoy Marg, New Delhi -110001. The Company is listed on the BSE Limited (BSE).

2. Basis of preparation

2.1 Statement of compliance

The standalone financial statements have been prepared in accordance with Indian Accounting Standards (Ind AS) notified under the Companies (Indian Accounting Standards ) Rules, 2015.

2.2 New and amended I nd AS that are effective for the current year

On 31 March 2023, the Ministry of Corporate Affairs notified Companies (Indian Accounting Standards) Amendment Rules. 2023 amending the Companies (Indian Accounting Standards) Rules, 2015. The amendments come into force with effect from I April 2023. i.c.. Financial Year2023-24.

2.3 Amendments to Ind AS I Presentation of Financial Statements: These amendments require the companies to disclose in their financial statements ‘material accounting policies'' as against the erstwhile requirement to disclose ‘significant accounting policies*. The word ‘significant* is substituted by ‘material''. Accounting policy information is material if. when considered together with other information included in corporation’s financial statements, it can reasonably be expected to influence decisions that the primary users of general purpose financial statements make based on those financial statements.

2.4 Amendments to Ind AS 8 Accounting Policies. Changes in Accounting Estimates and Errors—Definition

of Accounting Estimates: The amendments replace the definition of a change in accounting estimates with a definition of accounting estimates. Under the new definition, accounting estimates arc “monetary amounts in financial statements that arc subject to measurement uncertainty**. The definition of a change in accounting estimates was deleted.

Up to the year ended March 31.2017, the Company prepared its financial statements in accordance with the requirements of previous GAAP, which includes Standards notified under the Companies (Accounting Standards) Rules, 2006. The date of transition to Ind AS is April I, 2016. The financial statements are presented in rupees and all values are rounded to the nearest lakhs, except when otherwise indicated

3. Material accounting policies

3.1 Basis of preparation

The financial statements have been prepared on the historical cost basis except for certain financial instruments that arc measured at fair value at the end of each reporting period, as explained in the _L accounting policies mentioned below.

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Historical cost is generally based on the fair value of the consideration given in exchange for goods and services.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique.

In addition, for financial reporting purposes, fair value measurements are categorised into Level 1.2 or 3 based on the degree to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurement in its entirety, which are described as follows:

a) Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date:

b) Level 2 inputs are inputs, other than quoted prices included within Level I. that are observable for the asset or liability, either directly or indirectly; and

c) Level 3 inputs arc unobservable inputs for the asset or liability.

3.2 Current/ non-current classification

The Company presents assets and liabilities in the balance sheet based on current non-current classification. As asset is treated as current when it is:

a) Expected to be realised or intended to be sold or consumed in normal operating cycle;

b) Held primarily for the purpose of trading;

c) Expected to be realised within twelve months after the reporting period;

d) Cash and cash equivalents unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

All other assets are classified as non-current.

A liability is treated as current when:

a) It is expected to be settled in normal operating cycle:

b) It is held primarily for the purpose of trading;

c) It is due to be settled within twelve months after the reporting period, or

d) There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.

All other liabilities are classified as non-current.

3.3 Revenue recognition

Revenue is recognised to the extent that it is probable that economic benefit will flow to the Company and that the revenue can be reliably measured. Revenue is measured at the fair value of the consideration received or receivable, taking into account contractually defined terms of payments and excluding taxes and duties collected on behalf of the Government. Revenue is reduced for estimated customer returns, rebates and other similar allowances.

3.3.1 Revenue from constructed properties is recognised in accordance with Ind AS 115, the Revenue have been recognised when (or as) the entity satisfies a performation obligation by transferring a promised goods to a customer. An asset is transferred when (or as) the customers obtained control of that asset.

An entity transfers control of a good or service over time and. therefore, satisfies a performation obligation and recognise revenue over time, if one of the following criteria is met:

a) The customer simultaneously receives and consumes the benefits provided by the entity’s performance

as the entity performs.

b) The entity’s performance creates or enhances an asset that the customer controls as the asset is created orenhanced.

c) The entity’s performance does not create an asset with an alternative use to the entity and the entity has an enforceable right to payment for performance completed to date.

When the outcome of a real estate project can be estimated reliably and the above conditions are satisfied, revenue is recognised according to Ind AS 115.

The estimates relating to saleable area, sale value, estimated cost etc., arc revised and updated periodically by the management and necessary adjustments arc made in the current years account.

3.3.2 Revenue from sale of completed real estate projects, land, development rights and sale'''' transfer of rights in agreements are recognised in the financial year in which agreements of such sales are executed and there is no uncertainty about ultimate collections.

3.3.3 Whereas all income and expenses are accounted for on accrual basis, interest on delayed payments by customers against dues are taken into account on "Cash Basis” owing to practical difficulties and uncertainties involved.

3.3.4 Income from rent is recognised on accrual basis in accordance with the terms of agreement with the lessee.

3.3.5 Income from maintenance charges is recognised on accrual basis.

3.3.6 Interest income on bank deposits is recognised on accrual basis on a time proportion basis. Interest income on other financial instruments is recognised using the effective interest rate method.

3.3.7 Dividend income is recognised when the right to receive the dividend is established.

3.3.8 The Company pays interest on refund of registration money received for Future Projects in the eventuality if properly is not offered to the buyers and the same is demanded from the Company in the project against which such registration amounts are received. In view of the same interest is charged to the Statement of Profit & Loss only when liability of interest crystalizes.

3.4 Teasing

A contract contains a lease at the inception of a contract. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration To assess whether a contract conveys the right to control the use of an identified asset, the Company assesses whether : (i) the contract involves the use of an identified asset: (ii) it has substantially all of the economic benefits from use of the asset through the period of the lease, and (iii) it has the right to direct the use of the asset.

3.4.1 As lessor

Receipts from operating leases arc recognised in the Statement of Profit and Toss on a straight-line basis over the term of the relevant lease.

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Where the lease payments are structured to increase in line with expected general inflation to compensate for expected inflationary cost increases, lease income is recognised as per the contractual terms.

3.4.2 As lessee

The Lessee arrangements are recognised as right-of-use (ROU) asset and a corresponding lease liability for all lease arrangements in which it is a lessee, except for leases with a term of 12 months or less (short-term leases) and low-value leases. For these short-term and low-value leases, the Group recognizes the lease payments as an operating expense on a straight-line basis over the term of the lease.

3.5 Borrowing costs

Borrowing cost that are directly attributable to the acquisition or construction of a qualifying asset (including real estate projects) arc considered as part of the cost of the asset/ project. All other borrowing costs are treated as period cost and charged to the statement of profit and loss in the year in which incurred.

3.6 Investment in subsidiaries, associate and joint ventures

The Company records the investment in subsidiaries, associate and joint ventures at cost less impairment loss, if any.

On disposal of investment in subsidiary-, associate and joint venture, the difference between net disposal proceeds and the carrying amount is recognised in the Statement of profit and loss.

3.7 Foreign currency translation

3.7.1 Functional and presentational currency

The Company''s financial statements are presented in Indian rupees (INK), which is also the Company’s functional currency. Functional currency is the currency of the primary economic environment in which an entity operates and is normally the currency in which the entity primarily generates and expends cash.

3.7.2 Transactions and balances

Foreign currency transactions arc translated into the functional currency using the exchange rates at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities denominated in foreign currencies at year end exchange rates are generally recognised in the statement of profit or loss. They arc deferred in equity if they relate to qualifying cash How hedges.

Non-monctary items that are measured in terms of historical cost in a foreign currency arc translated using the exchange rates at the dates of the initial transactions. Non-monctary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value is determined. The gain or loss arising on translation of non-monctary items measured at fair value is treated in line with the recognition of the gain or loss on the change in fair value of the item (i.e., translation differences on items whose fair value gain or loss is recognised in other comprehensive income or profit or loss are also recognised in other comprehensive income or profit or loss, respectively).

3.8 Taxation

Income tax expense lor the year comprises of current tax and deferred lax.

3.8.1 Current tax

I''he tax currently payable is based on taxable profit for the year. Taxable profit differs from ’profit before tax'' as reported in the statement of profit and loss because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The Company''s current tax is calculated in accordance with the Income-tax Act, 1961, using tax rates that have been enacted or substantially enacted by the end of the reporting period.

3.8.2 Deferred tax

Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilised. Such deferred tax assets and liabilities arc not recognised if the temporary difference arises from the initial recognition (other than in a business combination) of assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profits.

The earning amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or pari of the deferred tax asset to be utilised. Unrecognised deferred lax assets are reassessed at each reporting date and are recognised to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realised or the liability is settled, based on tax rales (and tax laws) that have been enacted or substantively enacted at the reporting date.

3.8.3 Current and deferred tax for the year

Current and deferred tax are recognised in profit or loss, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax arc also recognised in other comprehensive income or directly in equity respectively.

3.9 Employee benefits

3.9.1 Short term employee benefits

Liabilities recognised in respect of short-term employee benefits in respect of wages and salaries, performance incentives, leaves etc. are measured at the undiscounlcd amount of the benefits expected to be paid in exchange for the related service.

3.9.2 Long term employee benefits

Accumulated leaves expected to be carried forward beyond twelve months, are treated as long-term employee benefits. I lability lor such long term benefit is provided based on the actuarial valuation using the projected unit credit method at year-end.

3.9.3 Defined contribution plan

The Company’s contribution to provident fund and employee state insurance scheme are considered as defined contribution plans and are charged as an expense to the Statement of Profit and Loss based on the amount of contribution required to be made.

3.9.4 Defined benefit plan

For defined benefit plan in the form of gratuity, the cost of providing benefits is determined using the projected unit credit method, with actuarial valuations being carried out at the end of each annual reporting period. Remeasurement, comprising actuarial gains and losses, is reflected immediately in the balance sheet with a charge or credit recognised in other comprehensive income in the period in which they occur. Remeasurement recognised in other comprehensive income is not reclassified to profit or loss in subsequent periods. Past sen ice cost is recognised in profit or loss in the period of a plan amendment. Net interest is calculated by applying the discount rate at the beginning of the period to the net defined benefit liability or asset.

3.10 Property , plant and equipment

3.10.1 Recognition and Measurement

Property, plant and equipment are stated at cost of acquisition or construction less accumulated depreciation and any recognised impairment losses, and include interest on loans attributable to the acquisition of qualifying assets uplo the date they are ready for their intended use. F reehold land is measured at cost and is not depreciated.

3.10.2 Depreciation

Depreciable amount for assets is the cost of an asset, or other amount substituted for cost, less its estimated residual value.

Depreciation on tangible fixed assets (other than free hold land) is recognised on written down value method as per the useful life prescribed in Schedule II to the Companies Act. 2013.

F,stimaied useful lives of the assets are as follows:

Plant and machinery 12-15 years

Air conditioners & refrigerators 15 years

Computers and information technology equipments 3 - 6 years

Furniture and fixtures 10 years

Office equipments 5 years

Motor vehicles 8-10 years

Freehold land is not depreciated.

Depreciation on car parking spaces is not charged during the year as the management treats the same as Land and not Building.

The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial year end and adjusted prospectively, i fappropriate.

An item of properly, plant and equipment is derecognised upon disposal or when no future economic benefits arc expected to arise from the continued use of the asset. Any gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between the sale proceeds and the carrying amount of the asset and is recognised in the statement of profit or loss._

3.11 Intangible assets

3.11.1 Recognition and Measurement

Intangible assets are stated at cost of acquisition or construction less accumulated amortisation and any recognised impairment losses, and include interest on loans attributable to the acquisition of qualifying assets upto the date they arc ready for their intended use.

3.11.2 Amortisation

Amortisation on intangible assets is recognised over the estimated useful life of the asset.

The residual values, useful lives and method of depreciation of intangible assets arc reviewed at each financial year end and adjusted prospectively, if appropriate.

An item of intangible asset is derecognised upon disposal or when no future economic benefits are expected to arise from the continued use of the asset Any gain or loss arising on the disposal or retirement of an item of intangible asset is determined as the difference between the sale proceeds and the carrying amount of the asset and is recognised in the statement of profit or loss.

3.12 Impairment of tangibleand intangible assets

The management periodically assesses whether there is any indication that an asset may have been impaired. If any such indication exists, the recoverable amount is estimated in order to determine the extent of impairment loss (if any). An impairment loss is recognized wherever the carrying value of an asset exceeds its recoverable amount. Recoverable amount is higher of an asset’s net selling price and its value in use. Value in use is the present value of estimated future cash flows expected to arise from the continuing use ofan asset and from its disposal at the end of the useful life.

Impairment losses recognized in prior years are reversed when there is an indication that the impairment losses recognized earlier no longer exist or have decreased. Such reversals are recognized as an increase in the carrying amount of the asset to the extent that does not exceed the carrying amounts that would have been determined (net ofdcprcciation) had no impairment loss been recognized in prior years.

3.13 Inventories

Inventories are valued at cost and net real isablc value .Cost is determined based on average cost basis.

a) Flats/ShopsHouscs/PIots/Stock of units Represents cost incurred in respect of completed

real estate project net cost of revenue.

b) Work in progress Represent cost incurred in repscct of projects

where the revenue is yet to be recognized and includes the cost of land.

3.14 Provisions and contingencies

3.14.1 Provisions

Provisions arc recognised when the Company has a present obligation 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 and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. When the effect of time value is material, the amount is determined by discounting the expected future cash flows.

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3.14.2 Contingent liabilities

Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle ora reliable estimate of the amount cannot be made.

3.15 Financial instruments

A 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.

3.15.1 Financial assets

3.15.1.1 Recognition and measurement

All financial assets are recognised initially at fair value plus (other than financial assets at fair value through profit or loss) transaction costs that are attributable to the acquisition of the financial asset. Purchases or sales of llnaneial assets that require delivery of assets within a time frame established by regulation or convention in the market place (regular way trades) are recognised on the trade date. i.c. the date that the Company commits to purchase or sell the asset.

All recognised financial assets arc subsequently measured in their entirety at either amortised cost or fair value, depending on the classification of the financial assets.

3.15.1.2 Classification of financial assets

Classification of financial assets depends on the nature and purpose of the financial assets and is determined at the time of initial recognition.

The Company classifies its financial assets in the following measurement categories:

a) Those measured at amortized cost,

b) Those to be measured subsequently at fair value, cither through other comprehensive income (FVTOCI) or through profit or loss (FVTPL)

Financial assets at amortised cost:

A financial assets is measured at the amortised cost if both the following conditions are met:

a) The asset is held within a business model w hose objective is to hold assets for collecting contractual cash flows, and

b) 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.

Financial assets at FVTOCI:

A financial asset is classified as at the FVTOCI if both of the following criteria are met unless the asset is designated at fair value through profit or loss under fair value option.

a) The objective of the business model is achieved both by collecting contractual cash flows and selling the financial asset, and

b) The asset’s contractual cash flows represent SPPI.

Financial assets at FVTPL:

FVTPL is a residual category'' for financial assets. Any asset, which docs not meet the criteria for categorization as at amortized cost or as FVTOCI. is classi lied as at FVTPL.

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3.15.1.3 Investments in equity instruments at FVTOCi

On iniiial recognition, the Company can make an irrevocable election (on an instrument-by-instrument basis) to present the subsequent changes in the fair value in other comprehensive income pertaining to investments in equity instruments. This election is not permitted if the equity investment is held for trading. These elected investments are initially measured at fair value plus transaction costs. Subsequently, they are measured at fair value with gains and losses arising front changes in fair value recognised in other comprehensive income and accumulated in the ''Reserv e for equity instruments through other comprehensive income''. The cumulative gain or loss is not reclassified to profit or loss on disposal of the investments.

A financial asset is held for trading if:

a) It has been acquired principally for the purposeof selling it in the near term: or

b) On initial recognition it is pari ofa portfolio of identified financial instruments that the Company manages logciher

and has an recent actual pattern ol''sliort-lenn profit-taking; or

c) It is a derivative that is not designated and effective as a hedging instrument ot a financial guarantee.

The Company has equity investment in three entities which arc not held for trading. The Company has elected the FVTOCI irrevocable option for this investment (Refer Note no. 10). Fair value is determined in the manner described in Note no. 39.

Dividend on above investment in equity instruments is recognised in profit or loss when the Company''s right to receive the dividend is established, it is probable that the economic benefits associated with the div idend will flow to the Company, the dividend docs not represent a recovery of part of cost of the investment and the amount of dividend can be measured reliably.

3.15.1.4 Derecognition

A financial asset is primarily derecognised when:

a) The rights to receive cash flows from the asset have expired, or

b) The Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay

the received cash flows in full without material delay to a third party under a ''pass through'' arrangement; and either (a) the Company has transferred substantially all the risks ami rewards of the asset, or (b> the Company has neither transferred nor retained substantially all the risks and rew ards of the asset, but lias transferred control of the asset.

3.15.1.5 I mpairment of financial assets

In accordance with Ind AS 109. the Company applies expected credit loss (ECL) model for measurement and recognition of impairment loss on the following financial assets and credit risk exposure:

a) Financial assets that arc debt instruments, and are measured at amortised cost c.g., loans, debt securities, deposits

and bank balance.

b) Any contractual right to receive cash or another financial asset that result from transactions that are within the

seopcoflndAS 18.

Hie Company believes that, considering their nature of business and past history, the expected credit loss in relation to its financial assets is non-existent or grossly immaterial. Thus, the Company has not recognised any provision for expected credit loss. The Company reviews this policy annually, if required.

3.15.2 Financial liabilities

3.15.2.1 Recognition and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, borrowings, payables, as appropriate.

All financial liabilities are recognised initially at fair value and. in the case of borrowings and payables, net of directly attributable transaction costs.

The Company’s financial liabilities include trade and other payablcsand borrowings.

All recognised financial liabilities arc subsequently measured in their entirety at cither amortised cost or fair value, depending on the classification of the financial liabilities.

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3.15.2.2 Derecognition

A financial liability is derecognised 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 modi fication is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the statement of profit or loss.

3.16 Offsetting financial instruments

Financial assets and liabilities are offset and the net amount is reported in the balance sheet where there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously.

3.17 Cash and cash cquivalcnts

Cash and cash equivalents comprises cash on hand, cash at bank and short term deposits with an original maturity of three months or less, which are subject to insignificant risk of changes in value.

318 Earnings pershare (EPS)

Basic earnings pershare has been computed by dividing the profit^ loss) after tax by the weighted average number of equity shares outstanding during the year.

For the purpose of calculating diluted earnings per share, the profif''(loss) after tax and the weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity share (ifany).

4 Recent accounting pronouncements

Amendments to Indian Accounting Standards (I nd AS) issued but not yet effective

The amendments to standards that are issued, hut not yet effective, up to the date of issuance of the financial statements are disclosed below. The Company intends to adopt these standards, if applicable, when they become effective.

The Ministry of Corporate Affairs (MCA) has issued the Companies (Indian Accounting Standards) Amendment Rules, 2017 and Companies (Indian Accounting Standards) Amendment Rules. 2018 amending the following standards:

Amendments to I nd AS 12 - Recognition of Defer red Tax Assets for Unrealised Losses

The amendments clarify that an entity needs to consider whether tax law restricts the sources of taxable profits against w hich it may make deductions on the reversal of that deductible temporary difference. Furthermore, the amendments provide guidance on how an entity should determine future taxable profits and explain the circumstances in which taxable profit may include the recovery of some assets for more than their carrying amount.

3.15.2 Financial liabilities

3.15.2.1 Recognition and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, borrowings, payables, as appropriate.

All financial liabilities are recognised initially at fair value and. in the case of borrowings and payables, net of directly attributable transaction costs.

I he Company''s financial liabilities include trade and other payables and borrowings.

All recognised financial liabilities arc subsequently measured in their entirety at either amortised cost or fair value, depending on the classification of the financial liabilities.

Entities are required to apply the amendments retrospectively. I lowevcr. on initial application of the amendments, the change in the opening equity of the earliest comparative period may be recognised in opening retained earnings (or in another component of equity, as appropriate), without allocating the change between opening retained earnings and other components of equity. Entities applying this relief must disclose that fact.

These amendments are effective for annual periods beginning on or alter April 1. 2018. These amendments are not expected to have material effect on Company’s standalone financial statements.

5 Material accounting judgements, estimates and assumptions

The preparation ofthe financial statements requires management of the Company to make judgements, estimates and assumptions that effect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods

In the process of applying the accounting policies, management has made the following judgements, which have the most significant effect on the amounts recognised in the financial statements:

Deferred tax assets

The extent to which deferred tax assets can be recognized is based on an assessment ofthe probability ofthe Company’s future taxable income against which the deferred tax assets can be utilized.

Defined benefit obligation (DBO)

Management’s estimate of the DBO is based on a number of critical underlying assumptions such as standard rates of inflation, medical cost trends, mortality^-, discount rate and anticipation of future salary increases. Variation in these assumptions may significantly impact the DBO amount and the annual defined benefit expenses.

Useful lives of porperty, plant and equipment and intangible assets

The Company reviews the estimated useful lives at the end of each reporting period.

Contingent liabilities

The Company has ongoing litigations with various regulatory'' authorities and others. Where an outflow of funds is believed to be probable and a reliable estimate ofthe outcome ofthe dispute can be made based on management’s assessment of specific circumstances of each dispute and relevant external advice, management provides for its best estimate ofthe liability.

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Mar 31, 2016

1 SIGNIFICANT ACCOUNTING POLICIES

A Basis of accounting and preparation of financial statements

These Financial statements have been prepared in accordance with the Indian Generally Accepted Accounting Principles (“Indian GAAP”) to comply with the Accounting Standards specified under Section 133 of the Companies Act, 2013 (“Act”) read with Rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provisions of the Act (to the extent notified). The financial statements have been prepared and presented under the historical cost convention on the accrual basis of accounting. The management evaluates all the recently issued or revised Accounting Standards on an ongoing basis.

Use of Estimates

The preparation of the financial statements in conformity with GAAP requires the Management to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to contingent assets and liabilities as at the date of financial statements and reported amounts of income and expenses during the period. Actual results could differ from the estimates. Any revision to accounting estimates is recognized prospectively in current and future periods.

B Valuation of Inventories

Projects in progress includes the value of materials and stores at sites.

Inventories are valued as under:

a) Flats/Shops/Houses/Plots At lower of cost or net realizable value

b) Projects in Progress At lower of cost or net realizable value C Cash Flow Statements

Cash flows are reported using the indirect method, whereby net profit before tax is adjusted for the effects of transactions of a non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from regular revenue generating, investing and financing activities of the Company are segregated. The Cash flow statement is separately attached with the Financial Statements of the company.

D Net Profit or Loss for the Period, Prior Period Items and Changes in Accounting Policies The prior period expenses are charged separately to the Statement of Profit and Loss. There is no change in the accounting policy during the year.

Depreciation on car parking spaces is not charged during the year as the management treats the same as Land and not Building.

Intangible Assets

Intangible assets are amortized using straight line method over the estimated useful life, not exceeding 3 years. Amortization method, useful life and residual value are reviewed periodically.

F Revenue Recognition

a) Revenue from constructed properties for all projects commenced on or before March 31, 2012 and where revenue recognition commenced on or before the above date, is recognized in accordance with the provisions of Accounting Standard (AS) 9 on Revenue Recognition, read with Guidance Note on “Recognition of Revenue by Real Estate Developers”. Revenue is computed based on the “percentage of completion method” and on the percentage of actual project costs incurred thereon to total estimated project cost, subject to such actual cost incurred being 30 percent or more of the total estimated project cost.

Revenue from constructed properties for all projects commenced on or after April 1, 2012 or project where the revenue is recognized for the first time on or after the above date, is recognized in accordance with the Revised Guidence Note issued by the Institute of Chartered Accountants of India (“ICAI”) on “ Accounting of Real Estate Transactions (Revised 2012).” As per this Guidence Note, the Revenue have been recognized on percentage of completion method provided all of the following conditions are met at the reporting date.

- required critical approvals for commencement of the project have been obtained

- at least 25% of estimated construction and development costs (excluding land cost) has been incurred.

- at least 25% of the saleable project area is secured by the Agreements to sell/ application forms (containing silent terms of the agreement to sell); and

- at least 10% of the total revenue as per agreement to sell are realized in respect of these agreements.

b) The estimates relating to saleable area, sale value, estimated cost etc., are revised and updated periodically by the management and necessary adjustments are made in the current years account.

c) Whereas all income and expenses are accounted for on accrual basis, interest on delayed payments by/to customers against dues are taken into account on “Cash Basis” owing to practical difficulties and uncertainties involved.

d) Dividend income is recognized when the right to receive the dividend is established.

e) Interest income is accounted for on time proportion basis taking into account the amount outstanding and applicable rate of interest.

f) The Company pays interest on refund of registration money received for Future Projects in the eventuality if property is not offered to the buyers and the same is demanded from the Company in the project against which such registration amounts are received. In view of the same interest is charged to the Statement of Profit & Loss only when liability of interest crystallizes.

g) Income from works contracts is recognized on the basis of running bills raised during the year.

h) The Company has not recognized the Revenue and has not charged the Cost incurred during the year of a project in Jammu amounting to Rs. 43,75,661/- in the Statement of Profit and Loss since the matter is under litigation and the same is postponed in accordance with para 10 read with para

11 of Accounting Standard 9 regarding “Revenue Recognition” because of the significant uncertainty of consideration and ultimate collection from the said project.

G Accounting for Fixed Assets

Fixed assets are stated at cost less accumulated depreciation. The Gross Block of fixed assets are shown at the cost of acquisition, which includes taxes, duties and other identifiable direct expenses incurred up to the date the asset is put to use. Assets costing less than Rs. 5,000/- are fully depreciated in the year of purchase. There was no revaluation of fixed assets carried out during the year.

H The Effects of Changes in Foreign Exchange Rates

Transactions in foreign currency are recorded at the exchange rate prevailing on the date of the transaction. Gains/ losses arising due to fluctuation, if any, in the exchange rates are recognized in the Statement of Profit & Loss in the period in which they arise. There is no gain or loss on account of exchange difference during the year.

I Accounting for Investments

Investments that are readily realizable and intended to be held for not more than a year are classified as current investments. All other investments are classified as long-term investments. Current investments are carried at lower of cost and fair value determined on an individual investment basis. Long-term investments are carried at cost. However, when there is a decline, other than temporary, in the value of the long term investment, the carrying cost is reduced to recognize the decline.

J Employee Benefits

a) Employee Benefits include provident fund, employee state insurance scheme, gratuity fund and leave encashment.

b) Defined Contribution Plans

The Company’s contribution to provident fund and employee state insurance scheme are considered as defined contribution plans and are charged as an expense to the Statement of Profit and Loss based on the amount of contribution required to be made.

c) Defined Benefit Plans

For defined benefit plans in the form of gratuity fund, the cost of providing benefits is determined using the Projected Unit Credit method, with actuarial valuations being carried out at each balance sheet date. Actuarial gains and losses are recognized in the Statement of Profit and Loss in the period in which they occur. Past service cost is recognized immediately to the extent that the benefits are already vested and otherwise is amortized on a straight-line basis over the average period until the benefits become vested.

d) Leave Encashment

Liability in respect of leave encashment becoming due or expected to be availed within twelve months from the balance sheet date is recognized on the basis of undiscounted value of estimated amount required to be paid or estimated value of benefit expected to be availed by the employees. Liability in respect of leave encashment not becoming due or expected to be availed more than twelve months after the balance sheet date is estimated on the basis of an actuarial valuation performed by an independent actuary using the projected unit credit method.

K Borrowing Costs

Borrowing costs which have a direct nexus and are directly attributable to the projects are charged to the projects and other borrowing costs are treated as periodic cost. Borrowing Costs are determined in accordance with the provisions of AS-16. Borrowing Costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to the Statement of Profit and Loss.

L Segment Reporting

Having regard to the integrated nature of the Real Estate Development business of the company, the disclosure requirement of “Segment Reporting” pursuant to the Accounting Standard (AS-17) is not applicable.

M Related Party Disclosure

The Details are stated in Note-34 “Related Party Transactions” below which are not reproduced here. N Leases

Financial Lease :

The company does not have any item covered under finance lease which needs disclosure as per Accounting Standard (AS-19) on “Leases”.

Operating Lease :

Leases where the less or effectively retains substantially all the risks and benefits of ownership of the leased term are classified as operating leases. Lease Rentals under Operating lease are recognized in the statement of profit and loss on a straight-line basis over the lease term.

O Earnings Per Share

In determining earnings per share, the Company considers the net profit after tax and includes the post-tax effect of any extraordinary / exceptional item. The number of shares used in computing basic earnings per share is the weighted average number of shares outstanding during the period. The number of shares used in computing diluted earnings per share comprises the weighted average number of shares considered for deriving basic earnings per share, and also the weighted average number of equity shares that could have been issued on the conversion of all dilutive potential equity shares.

The details are stated in Note-30 “Earnings Per Share” below which are not reproduced here.

P Consolidated Financial Statements

Consolidated financial statements of the company, its subsidiaries, Joint Ventures and Associates Companies, all incorporated in India, are enclosed separately.

Q Accounting for Taxes on Income In come Tax

Income-tax expense comprises of Current tax being amount of tax determined in accordance with the Income Tax Act, 1961. A provision is made for income-tax annually.

Deferred Tax

a) Current Tax is determined as the amount of tax payable as per Income Tax Act, 1961

b) Deferred Tax is recognized, subject to the consideration of prudence, on timing differences being differences between taxable income and accounting income, that originate in one period and are capable of being reversed in one or more subsequent periods, to the extent the timing differences are expected to crystallize.

c) The carrying amount of deferred tax assets are reviewed at each balance sheet date. The Company writes down the carrying amount of a deferred tax asset to the extent that it is no longer reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available against which deferred tax asset can be realized. Any such write down is reversed to the extent that it becomes reasonably certain or virtually certain, as the case may be that sufficient future taxable income will be available.

R Intangible Assets

Intangible Assets are stated at cost of acquisition net of recoverable taxes less accumulated amortization/ depletion. Cost comprises the acquisition price, development cost and any attributable / allocable incidental cost of bringing the asset to its working condition for its intended use.

S Financial Reporting of Interests in Joint Ventures

The management has applied Accounting Standard (AS) 27, Financial Reporting of Interests in Joint Ventures, in accounting for interests in joint venture and the reporting of joint venture’s assets, liabilities, income and expenses in the financial statements of venture, regardless of the structures or forms under which the joint venture activities take place. The details are stated in Note-36 “Interests in Joint Ventures” below which are not reproduced here.

T Impairment of Assets

At the Balance Sheet date an assessment is done to determine whether there is any indication of impairment in the carrying amount of the company’s fixed assets. If any such indication exist the asset’s recoverable amount is estimated. An impairment loss is recognized whenever the carrying amount of an asset exceeds it’s recoverable amount. After the recognition of impairment loss the depreciation charged for the assets is adjusted in future periods to allocate the asset’s revised carrying amount less the residual value, if any, on the written down value basis over it’s useful remaining life.

U Provisions, Contingent Liabilities and Contingent Assets

The company recognizes a provision when there is a present obligation as a result of a past event that probable requires an outflow of resources and a reliable estimate can be made of the amount of obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not require an outflow of resources or where the same cannot be reliably estimated.

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Mar 31, 2015

A Basis of accounting and preparation of financial statements

These Financial statements have been prepared in accordance with the Indian Generally Accepted Acounting Principles ("Indian GAAP") to comply with the Accounting Standards specified under Section 133 of the Companies Act, 2013 ("Act") read with Rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provisions of the Act (to the extent notified). The financial statements have been prepared and presented under the historical cost convention on the accrual basis of accounting. The management evaluates all the recently issued or revised Accounting Standards on an ongoing basis.

Use of Estimates

The preparation of the financial statements in confirmity with GAAP requires the Management to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to contingent assets and liabilities as at the date of financial statements and reported amounts of income and expenses during the period. Actual results could differ from the estimates. Any revision to accounting estimates is recognised prospectively in current and future periods.

B Valuation of Inventories

Projects in progress includes the value of materials and stores at sites.

Inventories are valued as under:

a) Flats/Shops/Houses/Plots At lower of cost or net realizable value

b) Projects in Progress At lower of cost or net realizable value

C Cash Flow Statements

Cash flows are reported using the indirect method, whereby net profit before tax is adjusted for the effects of transactions of a non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from regular revenue generating, investing and financing activities of the Company are segregated. The Cash flow statement is separately attached with the Financial Statements of the company.

D Net Profit or Loss for the Period, Prior Period Items and Changes in Accounting Policies

The prior period expenses are charged separately to the Statement of Profit and Loss. There is no change in the accounting policy during the year.

E Depreciation and Amortisation

Tangible Assets

Depreciation on tangible assets is provided on the Written Down Value Method over the useful lives of the assets as prescribed under Schedule-II of the Companies Act, 2013. Depreciation for assets purchased / sold during a period is proportionately charged. The useful lives of the assets as per Schedule-II of the Companies Act, 2013 as follows:

Class of Asset Useful Life

Air Conditioners & Refrigerators 15 Years

End user devices (Desktops, Laptops, etc.) 3 Years

Servers & Networks 6 Years

Furniture, Fixtures & Fittings 10 Years

Office Equipments 5 Years

Plant & Machinery (General) 15 Years

Plant & Machinery (Construction) 12 Years

Motor Vehicles (Motor Cycles, Scooters / Other Motor Vehicles) 10 Years / 8 Years

Depreciation on car parking spaces is not charged during the year as the management treats the same as Land and not Building.

Intangible Assets

Intangible assets are amortised using straight line method over the estimated useful life, not exceeding 3 years. Amortisation method, useful life and residual value are reviewed periodically.

F Revenue Recognition

a) Revenue from constructed properties for all projects commenced on or before March 31, 2012 and where revenue recognition commenced on or before the above date, is recognized in accordance with the provisions of Accounting Standard (AS) 9 on Revenue Recognition, read with Guidence Note on "Recognition of Revenue by Real Estate Developers". Revenue is computed based on the "percentage of completion method" and on the percentage of actual project costs incurred thereon to total estimated project cost, subject to such actual cost incurred being 30 percent or more of the total estimated project cost.

Revenue from constructed properties for all projects commenced on or after April 1, 2012 or project where the revenue is recognized for the first time on or after the above date, is recognized in accordance with the Revised Guidence Note issued by the Institute of Chartered Accountants of India ("ICAI") on " Accounting of Real Estate Transactions (Revised 2012)." As per this Guidence Note, the Revenue have been recognized on percentage of completion method provided all of the following conditions are met at the reporting date.

* required critical approvals for commencement of the project have been obtained

* atleast 25% of estimated construction and development costs (excluding land cost) has been incurred.

* atleast 25% of the saleable project area is secured by the Agreements to sell/ application forms (containing silent terms of the agreement to sell); and

* atleast 10% of the total revenue as per agreement to sell are realized in respect of these agreements.

b) The estimates relating to saleable area, sale value, estimated cost etc., are revised and updated periodically by the management and necessary adjustments are made in the current years account.

c) Whereas all income and expenses are accounted for on accrual basis, interest on delayed payments by/to customers against dues are taken into account on "Cash Basis" owing to practical difficulties and uncertainties involved.

d) Dividend income is recognised when the right to receive the dividend is established.

e) Interest income is accounted for on time proportion basis taking into account the amount outstanding and applicable rate of interest.

f) The Company pays interest on refund of registration money received for Future Projects in the eventuality if property is not offered to the buyers and the same is demanded from the Company in the project against which such registration amounts are received. In view of the same interest is charged to the Statement of Profit & Loss only when liability of interest crystalizes.

g) Income from works contracts is recognised on the basis of running bills raised during the year.

G Accounting for Fixed Assets

Fixed assets are stated at cost less accumulated depreciation. The Gross Block of fixed assets are shown at the cost of acquisition, which includes taxes, duties and other identifiable direct expenses incurred upto the date the asset is put to use. Assets costing less than Rs. 5,000/- are fully depreciated in the year of purchase. There was no revaluation of fixed assets carried out during the year.

H The Effects of Changes in Foreign Exchange Rates

Transactions in foreign currency are recorded at the exchange rate prevailing on the date of the transaction. Gains/ losses arising due to fluctuation, if any, in the exchange rates are recognised in the Statement of Profit & Loss in the period in which they arise. There is no gain or loss on account of exchange difference during the year.

I Accounting for Investments

Investments that are readily realisable and intended to be held for not more than a year are classified as current investments. All other investments are classified as long-term investments. Current investments are carried at lower of cost and fair value determined on an individual investment basis. Long-term investments are carried at cost. However, when there is a decline, other than temporary, in the value of the long term investment, the carrying cost is reduced to recognise the decline.

J Employee Benefits

a) Employee Benefits include provident fund, employee state insurance scheme, gratuity fund and leave encashment.

b) Defined Contribution Plans

The Company's contribution to provident fund and employee state insurance scheme are considered as defined contribution plans and are charged as an expense to the Statement of Profit and Loss based on the amount of contribution required to be made.

c) Defined Benefit Plans

For defined benefit plans in the form of gratuity fund, the cost of providing benefits is determined using the Projected Unit Credit method, with actuarial valuations being carried out at each balance sheet date. Actuarial gains and losses are recognised in the Statement of Profit and Loss in the period in which they occur. Past service cost is recognised immediately to the extent that the benefits are already vested and otherwise is amortised on a straight-line basis over the average period until the benefits become vested.

d) Leave Encashment

Liability in respect of leave encashment becoming due or expected to be availed within twelve months from the balance sheet date is recognised on the basis of undiscounted value of estimated amount required to be paid or estimated value of benefit expected to be availed by the employees. Liability in respect of leave encashment not becoming due or expected to be availed more than twelve months after the balance sheet date is estimated on the basis of an actuarial valuation performed by an independent actuary using the projected unit credit method.

K Borrowing Costs

Borrowing costs which have a direct nexus and are directly attributable to the projects are charged to the projects and other borrowing costs are treated as periodic cost.

Borrowing Costs are determined in accordance with the provisions of AS-16. Borrowing Costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to the Statement of Profit and Loss. L Segment Reporting

Having regard to the integrated nature of the Real Estate Development business of the company, the disclosure requirement of "Segment Reporting" pursuant to the Accounting Standard (AS-17) is not applicable.

M Related Party Disclosure

The Details are stated in Note-34 "Related Party Transactions" below which are not reproduced here.

N Leases

Financial Lease :

The company does not have any item covered under finance lease which needs disclosure as per Accounting Standard (AS-19) on "Leases".

Operating Lease :

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

O Earnings Per Share

In determining earnings per share, the Company considers the net profit after tax and includes the post-tax effect of any extraordinary / exceptional item. The number of shares used in computing basic earnings per share is the weighted average number of shares outstanding during the period. The number of shares used in computing diluted earnings per share comprises the weighted average number of shares considered for deriving basic earnings per share, and also the weighted average number of equity shares that could have been issued on the conversion of all dilutive potential equity shares.

The details are stated in Note-30 "Earnings Per Share" below which are not reproduced here.

P Consolidated Financial Statements

Consolidated financial statements of the company, its subsidiaries, Joint Ventures and Associates Companies, all incorporated in India, are enclosed separately.

Q Accounting for Taxes on Income

Income Tax

Income-tax expense comprises of Current tax being amount of tax determined in accordance with the Income Tax Act, 1961. A provision is made for income-tax annually.

Deferred Tax

a) Current Tax is determined as the amount of tax payable as per Income Tax Act, 1961

b) Deferred Tax is recognized, subject to the consideration of prudence, on timing differences being differences between taxable income and accounting income, that originate in one period and are capable of being reversed in one or more subsequent periods, to the extent the timing differences are expected to crystalise.

c) The carrying amount of deferred tax assets are reviewed at each balance sheet date. The Company writes down the carrying amount of a deferred tax asset to the extent that it is no longer reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available against which deferred tax asset can be realised. Any such write down is reversed to the extent that it becomes reasonably certain or virtually certain, as the case may be that sufficient future taxable income will be available.

R Intangible Assets

Intangible Assets are stated at cost of acquisition net of recoverable taxes less accumulated amortisation/depletion. Cost comprises the acquisition price, development cost and any attributable/allocable incidental cost of bringing the asset to its working condition for its intended use.

S Financial Reporting of Interests in Joint Ventures

The management has applied Accounting Standard (AS) 27, Financial Reporting of Interests in Joint Ventures, in accounting for interests in joint venture and the reporting of joint venture's assets, liabilities, income and expenses in the financial statements of venturer, regardless of the structures or forms under which the joint venture activities take place. The details are stated in Note-36 "Interests in Joint Ventures" below which are not reproduced here.

T Impairment of Assets

At the Balance Sheet date an assessment is done to determine whether there is any indication of impairment in the carrying amount of the company's fixed assets. If any such indication exist the asset's recoverable amount is estimated. An impairment loss is recognised whenever the carrying amount of an asset exceeds it's recoverable amount. After the recognition of impairment loss the depreciation charged for the assets is adjusted in future periods to allocate the asset's revised carrying amount less the residual value, if any, on the written down value basis over it's useful remaining life.

U Provisions, Contingent Liabilities and Contingent Assets

The company recognises a provision when there is a present obligation as a result of a past event that probable requires an outflow of resources and a reliable estimate can be made of the amount of obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not require an outflow of resources or where the same cannot be reliably estimated.

Provisions are reviewed at each Balance Sheet date and adjusted to reflect the current best estimate. If it is no longer probable that the outflow of resources would be required to settle the obligation, the provision is reversed.

Contingent assets are not recognised in the financial statements. However, contingent assets are assessed continually and if it is virtually certain that an economic benefit will arise, the asset and related income are recognised in the period in which the change occurs.

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Mar 31, 2014

A Basis of accounting and preparation of financial statements

The Financial statements are prepared and presented under the historical cost convention on the accrual basis of accounting and Generally Accepted Acounting Principles (GAAP) which include compliance with the Acounting Standards prescribed by the Companies (Accounting Standards) Rules, 2006, and the relevant provisions of the Companies Act, 1956, to the extent applicable. The management evaluates all the recently issued or revised Accounting Standards on an ongoing basis.

Use of Estimates

The preparation of the financial statements in confirmity with GAAP requires the Management to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to contingent assets and liabilities as at the date of financial statements and reported amounts of income and expenses during the period. Actual results could differ from the estimates. Any revision to accounting estimates is recognised prospectively in current and future periods.

B Valuation of Inventories

Projects in progress includes the value of materials and stores at sites.

Inventories are valued as under:

a) Flats/Shops/Houses/Plots At lower of cost or net realizable value

b) Projects in Progress At lower of cost or net realizable value

C Cash Flow Statements

Cash flows are reported using the indirect method, whereby net profit before tax is adjusted for the effects of transactions of a non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from regular revenue generating, investing and financing activities of the Company are segregated. The Cash flow statement is separately attached with the Financial Statements of the company.

D Net Profit or Loss for the Period, Prior Period Items and Changes in Accounting Policies

The prior period expenses are charged separately to the profit and loss account, except relating to sites and construction divisions, which have been charged to Work in Progress. There is no change in the accounting policy during the year.

E Depreciation and Amortisation Tangible Assets

Depreciation is provided on Written Down Value method on pro-rata basis at the rates as prescribed in Schedule XIV of the Companies Act, 1956 for the period the assets are held by the Company. The same are as given below:

Depreciation on car parking spaces is not charged during the year as the management treats the same as Land and not Building.

Intangible Assets

Intangible assets are amortised using straight line method over the estimated useful life, not exceeding 3 years. Computer Software Licenses are amortised over a period of 3 years. Amortisation method, useful life and residual value are reviewed periodically.

F Revenue Recognition

a) The company follows "Percentage of Completion method" of accounting under which Sales Turnover and corresponding Profit/ Loss on each project in progress is accounted for at the year end in the proportion that the actual cost incurred bears to the total estimated cost of such project, subject to actual cost being 30% or more of total estimated cost.

b) The estimates relating to saleable area, sale value, estimated cost etc., are revised and updated periodically by the management and necessary adjustments are made in the current years account.

c) Whereas all income and expenses are accounted for on accrual basis, interest on delayed payments by/to customers against dues are taken into account on "Cash Basis" owing to practical difficulties and uncertainties involved.

d) Dividend income is recognised when the right to receive the dividend is established.

e) Interest income is accounted for on time proportion basis taking into account the amount outstanding and applicable rate of interest.

f) The Company pays interest on refund of registration money received for Future Projects in the eventuality if property is not offered to the buyers and the same is demanded from the Company in the project against which such registration amounts are received. In view of the same interest is charged to the Statement of Profit & Loss only when liability of interest crystalizes.

g) Income from works contracts is recognised on the basis of running bills raised during the year. The related costs there against are charged to the Statement of Profit & Loss.

h) Indirect costs are treated as "Period Costs" and are charged to the Statement of Profit and Loss in the year in which they are incurred.

G Accounting for Fixed Assets

Fixed assets are stated at cost less accumulated depreciation. The Gross Block of fixed assets are shown at the cost of acquisition, which includes taxes, duties and other identifiable direct expenses incurred upto the date the asset is put to use. Assets costing less than '' 5,000/- are fully depreciated in the year of purchase. There was no revaluation of fixed assets carried out during the year.

H The Effects of Changes in Foreign Exchange Rates

Transactions in foreign currency are recorded at the exchange rate prevailing on the date of the transaction. Gains/ losses arising due to fluctuation, if any, in the exchange rates are recognised in the Statement of Profit & Loss in the period in which they arise. There is no gain or loss on account of exchange difference during the year.

I Accounting for Investments

Investments that are readily realisable and intended to be held for not more than a year are classified as current investments. All other investments are classified as long-term investments. Current investments are carried at lower of cost and fair value determined on an individual investment basis. Long-term investments are carried at cost. However, when there is a decline, other than temporary, in the value of the long term investment, the carrying cost is reduced to recognise the decline.

J Employee Benefits

a) Employee Benefits include provident fund, employee state insurance scheme, gratuity fund and leave encashment.

b) Defined Contribution Plans

The Company''s contribution to provident fund and employee state insurance scheme are considered as defined contribution plans and are charged as an expense to the Statement of Profit and Loss based on the amount of contribution required to be made.

c) Defined Benefit Plans

For defined benefit plans in the form of gratuity fund, the cost of providing benefits is determined using the Projected Unit Credit method, with actuarial valuations being carried out at each balance sheet date. Actuarial gains and losses are recognised in the Statement of Profit and Loss in the period in which they occur. Past service cost is recognised immediately to the extent that the benefits are already vested and otherwise is amortised on a straight-line basis over the average period until the benefits become vested.

d) Leave Encashment

Liability in respect of leave encashment becoming due or expected to be availed within twelve months from the balance sheet date is recognised on the basis of undiscounted value of estimated amount required to be paid or estimated value of benefit expected to be availed by the employees. Liability in respect of leave encashment not becoming due or expected to be availed more than twelve months after the balance sheet date is estimated on the basis of an actuarial valuation performed by an independent actuary using the projected unit credit method.

K Borrowing Costs

Borrowing costs which have a direct nexus and are directly attributable to the projects are charged to the projects and other borrowing costs are treated as periodic cost.

Borrowing Costs are determined in accordance with the provisions of AS-16. Borrowing Costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to the Statement of Profit and Loss.

L Segment Reporting

a) Having regard to the integrated nature of the Real Estate Development business of the company, the disclosure requirement of "Segment Reporting" pursuant to the Accounting Standard (AS-17) is not applicable.

b) The company''s Construction business, in terms of revenue, result and asset empolyed, is not reportable segment as per the Accounting Standard (AS-17) on "Segment Reporting".

M Related Party Disclosure

The Details are stated in Note-34 "Related Party Transactions" below which are not reproduced here.

N Leases

Financial Lease :

The company does not have any item covered under finance lease which needs disclosure as per Accounting Standard (AS-19) on "Leases".

Operating Lease :

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

O Earnings Per Share

In determining earnings per share, the Company considers the net profit after tax and includes the post-tax effect of any extraordinary / exceptional item. The number of shares used in computing basic earnings per share is the weighted average number of shares outstanding during the period. The number of shares used in computing diluted earnings per share comprises the weighted average shares considered for deriving basic earnings per share, and also the weighted average number of equity shares that could have been issued on the conversion of all dilutive potential equity shares. The details are stated in Note-30 "Earnings Per Share" below which are not reproduced here.

P Consolidated Financial Statements

Consolidated financial statements of the company and its subsidiaries M/s Ansal Real Estate Developers Private Limited, M/s Lancer Resorts and Tours Private Limited, M/s Potent Housing & Construction Private Limited, M/s Sabina Park Resorts and Marketing Private Limited and M/ s Triveni Apartments Private Limited, all incorporated in India, are enclosed separately.

Q Accounting for Taxes on Income

Income Tax

Income-tax expense comprises of current tax being amount of tax determined in accordance with the Income-tax law. A provision is made for income-tax annually.

Deferred Tax

a) Current tax is determined as the amount of tax payable as per Income Tax Act, 1961.

b) Deferred Tax is recognized, subject to the consideration of prudence, on timing differences being differences between taxable income and accounting income, that originate in one period and are capable of being reversed in one or more subsequent periods, to the extent the timing differences are expected to crystalise.

c) The carrying amount of deferred tax assets are reviewed at each balance sheet date. The Company writes down the carrying amount of a deferred tax asset to the extent that it is no longer reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available against which deferred tax asset can be realised. Any such write down is reversed to the extent that it becomes reasonably certain or virtually certain, as the case may be that sufficient future taxable income will be available.

R Intangible Assets

Intangible Assets are stated at cost of acquisition net of recoverable taxes less accumulated amortisation /depletion. Cost comprises the acquisition price, development cost and any attributable / allocable incidental cost of bringing the asset to its working condition for its intended use.

S Financial Reporting of Interests in Joint Ventures

The management has applied AS 27, Financial Reporting of Interests in Joint Ventures, in accounting for interests in joint venture and the reporting of joint venture assets, liabilities, income and expenses in the financial statements of venturer, regardless of the structures or forms under which the joint venture activities take place. The details are stated in Note-36 "Interests in Joint Ventures" below which are not reproduced here.

T Impairment of Assets

At the Balance Sheet date an assessment is done to determine whether there is any indication of impairment in the carrying amount of the company''s fixed assets. If any such indication exist the asset''s recoverable amount is estimated. An impairment loss is recognised whenever the carrying amount of an asset exceeds it''s recoverable amount. After the recognition of impairment loss the depreciation charged for the assets is adjusted in future periods to allocate the asset''s revised carrying amount less the residual value, if any, on the written down value basis over it''s useful remaining life.

U Provisions, Contingent Liabilities and Contingent Assets

The company recognises a provision when there is a present obligation as a result of a past event that probable requires an outflow of resources and a reliable estimate can be made of the amount of obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not require an outflow of resources or where the same cannot be reliably estimated.

Provisions are reviewed at each Balance Sheet date and adjusted to reflect the current best estimate. If it is no longer probable that the outflow of resources would be required to settle the obligation, the provision is reversed.

Contingent assets are not recognised in the financial statements. However, contingent assets are assessed continually and if it is virtually certain that an economic benefit will arise, the asset and related income are recognised in the period in which the change occurs.

(As per the records of the Company, including its register of shareholders / members and other declarations received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownership of shares.)

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Mar 31, 2012

A Disclosure of Accounting Policies

The Financial statements are prepared and presented under the historical cost convention on the accrual basis of accounting and Generally Accepted Acounting Principles (GAAP) which include compliance with the Acounting Standards prescribed by the Companies (Accounting Standards) Rules, 2006, and the relevant provisions of the Companies Act, 1956, to the extent applicable. The management evaluates all the recently issued or revised Accounting Standards on an ongoing basis.

Changes in presentation and disclosures of financial statements

During the year ended March 31, 2012, the revised schedule VI notified under the Companies Act, 1956, has become applicable, for preparation and presentation of financial statements. The adoption of revised schedule VI does not impact recognition and measurement principles followed for preparation of financial statements. However it has significant impact on presentation and disclosures made in financial statements. The Company has also reclassified the previous year figures in accordance with the requirements to conform to current year's classification, wherever necessary.

Use of Estimates

The preparation of the financial statements in confirmity with GAAP requires the Management to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to contingent assets and liabilities as at the date of financial statements and reported amounts of income and expenses during the period. Actual results could differ from the estimates. Any revision to accounting estimates is recognised prospectively in current and future periods.

B Valuation of Inventories

Projects in progress includes the value of materials and stores at sites.

Inventories are valued as under:

a) Flats/Shops/Houses/Plots At lower of cost or net realizable value

b) Projects in Progress At lower of cost or net realizable value

c) Stores & Spares At lower of cost or net realizable value

C Cash Flow Statements

Cash flows are reported using the indirect method, whereby net profit before tax is adjusted for the effects of transactions of a non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from regular revenue generating, investing and financing activities of the Company are segregated. The Cash flow statement is separately attached with the Financial Statements of the company.

D Net Profit or Loss for the Period, Prior Period Items and Changes in Accounting Policies

The prior period expenses are charged separately to the profit and loss account, except relating to sites and construction divisions, which have been charged to Work in Progress. There is no change in the accounting policy during the year.

E Depreciation and Amortisation Tangible Assets

Depreciation is provided on Written Down Value method on pro-rata basis at the rates as prescribed in Schedule XIV of the Companies Act, 1956 for the period the assets are held by the Company.

Depreciation on car parking spaces is not charged during the year as the management treats the same as Land and not Building.

Intangible Assets

Intangible assets are amortised using straight line method over the estimated useful life, not exceeding 3 years. Computer Software Licenses are amortised over a period of 3 years. Amortisation method, useful life and residual value are reviewed periodically.

F Revenue Recognition

a) The company follows "Percentage of Completion method" of accounting under which Sales Turnover and corresponding Profit/ Loss on each project in progress is accounted for at the year end in the proportion that the actual cost incurred bears to the total estimated cost of such project, subject to actual cost being 30% or more of total estimated cost.

b) The estimates relating to saleable area, sale value, estimated cost etc., are revised and updated periodically by the management and necessary adjustments are made in the current years account.

c) Whereas all income and expenses are accounted for on accrual basis, interest on delayed payments by/to customers against dues are taken into account on "Cash Basis" owing to practical difficulties and uncertainties involved.

d) Dividend income is recognised when the right to receive the dividend is established.

e) The Company pays interest on refund of Registration money received for Future Projects in the eventuality if property is not offered to them by the Company in the project against which such registration amounts are received. In view of the same interest is charged to Profit & Loss Account only when liability of interest crystalizes.

f) Income from works contracts is recognised on the basis of running bills raised during the year. The related costs there against are charged to the profit & loss account.

g) Indirect costs are treated as "Period Costs" and are charged to Profit and Loss Account in the year in which they are incurred.

G Accounting for Fixed Assets

Fixed assets are stated at cost less accumulated depreciation. The Gross Block of fixed assets are shown at the cost of acquisition, which includes taxes, duties and other identifiable direct expenses incurred upto the date the asset is put to use. Assets costing less than Rs. 5,000/- are fully depreciated in the year of purchase. There was no revaluation of fixed assets carried out during the year.

H The Effects of Changes in Foreign Exchange Rates

Transactions in foreign currency are recorded at the exchange rate prevailing on the date of the transaction. Gains/ losses arising due to fluctuation, if any, in the exchange rates are recognised in the Profit & Loss Account in the period in which they arise. There is no gain or loss on account of exchange difference during the year.

I Accounting for Investments

Investments that are readily realisable and intended to be held for not more than a year are classified as current investments. All other investments are classified as long-term investments. Current investments are carried at lower of cost and fair value determined on an individual investment basis. Long-term investments are carried at cost. However, when there is a decline, other than temporary, in the value of the long term investment, the carrying cost is reduced to recognise the decline.

J Employee Benefits

a) Provisions for Gratuity and Leave Encashment are made on the basis of Actuarial Valuation Certificate for the year ending 31.03.2012, in accordance with AS-15 (Revised 2005) on 'Employee Benefits'.

b) Provident Fund Contribution made during the year are charged to Profit & loss Account.

K Borrowing Costs

Borrowing costs which have a direct nexus and are directly attributable to the projects are charged to the projects and other borrowing costs are treated as periodic cost.Borrowing Costs are determined in accordance with the provisions of AS-16. Borrowing Costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to revenue.During the current year, no borrowing costs were capitalized in accordance with the provisions of AS-16. (Previous Year : NIL)

L Segment Reporting

a) Having regard to the integrated nature of the Real Estate Development business of the company, the disclosure requirement of "Segment Reporting" pursuant to the Accounting Standard (AS- 17) is not applicable.

b) The company's Construction business, in terms of revenue, result and asset empolyed, is not reportable segment as per the Accounting Standard (AS-17) on "Segment Reporting".

M Related Party Disclosure

The Details are stated in Note-34 "Related Party Transactions" below which are not reproduced here.

N Leases

Financial Lease :

The company does not have any item covered under finance lease which needs disclosure as per Accounting Standard (AS-19) on "Leases".

Operating Lease :

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

O Earnings Per Share

In determining earnings per share, the Company considers the net profit after tax and includes the

post-tax effect of any extraordinary / exceptional item. The number of shares used in computing basic earnings per share is the weighted average number of shares outstanding during the period. The number of shares used in computing diluted earnings per share comprises the weighted average shares considered for deriving basic earnings per share, and also the weighted average number of equity shares that could have been issued on the conversion of all dilutive potential equity shares. The details are stated in Note-30 "Earnings Per Share" below which are not reproduced here.

P Consolidated Financial Statements

Consolidated financial statements of the company and its subsidiaries M/s Ansal Real Estate Developers Private Limited, M/s Lancer Resorts and Tours Private Limited, M/s Potent Housing & Construction Private Limited, M/s Sabina Park Resorts and Marketing Private Limited and M/s Triveni Apartments Private Limited, all incorporated in India, are enclosed separately.

Q Accounting for Taxes on Income

Income Tax

Income-tax expense comprises of current tax being amount of tax determined in accordance with the Income-tax law. A provision is made for income-tax annually.

Deferred Tax

a) Current tax is determined as the amount of tax payable as per Income Tax Act, 1961.

b) Deferred Tax is recognized, subject to the consideration of Prudence, on Timing Differences being differences between taxable income and accounting income, that originate in one period and are capable of being reversed in one or more subsequent periods, to the extent the timing differences are expected to crystalise.

c) The carrying amount of deferred tax assets are reviewed at each balance sheet date. The Company writes down the carrying amount of a deferred tax asset to the extent that it is no longer reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available against which deferred tax asset can be realised. Any such write down is reversed to the extent that it becomes reasonably certain or virtually certain, as the case may be that sufficient future taxable income will be available.

R Intangible Assets

Intangible Assets are stated at cost of acquisition net of recoverable taxes less accumulated amortisation /depletion. Cost comprises the acquisition price, development cost and any attributable / allocable incidental cost of bringing the asset to its working condition for its intended use.

S Financial Reporting of Interests in Joint Ventures

The management has applied AS 27, Financial Reporting of Interests in Joint Ventures, in accounting for interests in joint venture and the reporting of joint venture assets, liabilities, income and expenses in the financial statements of venturer, regardless of the structures or forms under which the joint venture activities take place. The details are stated in Note-36 "Interests in Joint Ventures" below which are not reproduced here.

T Impairment of Assets

At the Balance Sheet date an assessment is done to determine whether there is any indication of impairment in the carrying amount of the company's fixed assets. If any such indication exist the asset's recoverable amount is estimated. An impairment loss is recognised whenever the carrying amount of an asset exceeds it's recoverable amount. After the recognition of impairment loss the

depreciation charged for the assets is adjusted in future periods to allocate the asset's revised carrying amount less the residual value, if any, on the written down value basis over it's useful remaining life.

U Provisions, Contingent Liabilities and Contingent Assets

The company recognises a provision when there is a present obligation as a result of a past event that probable requires an outflow of resources and a reliable estimate can be made of the amount of obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not require an outflow of resources.

Provisions are reviewed at each Balance Sheet date and adjusted to reflect the current best estimate. If it is no longer probable that the outflow of resources would be required to settle the obligation, the provision is reversed.

Contingent assets are not recognised in the financial statements. However, contingent assets are assessed continually and if it is virtually certain that an economic benefit will arise, the asset and related income are recognised in the period in which the change occurs.

---

Mar 31, 2011

1. Disclosure of Accounting Policies

The Financial statements are prepared and presented under the historical cost convention on the accrual basis of accounting and Generally Accepted Acounting Principles (GAAP) which include compliance with the Accounting Standards prescribed by the Companies (Accounting Standards) Rules, 2006, and the relevant provisions of the Companies Act, 1956, to the extent applicable. The management evaluates all the recently issued or revised Accounting Standards on an ongoing basis.

Use of Estimates

The preparation of the financial statements in confirmity with GAAP requires the Management to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to contingent assets and liabilities as at the date of financial statements and reported amounts of income and expenses during the period. Actual results could differ from the estimates. Any revision to accounting estimates is recognised prospectively in current and future periods.

2 Valuation of Inventories

Projects in progress includes the value of materials and stores at sites. Inventories are valued as under:

a) Flats/Shops/Houses/Plots At lower of cost or net realizable value

b) Projects in Progress At lower of cost or net realizable value

c) Stores & Spares At lower of cost or net realizable value

3 Cash Flow Statements

Cash flows are reported using the indirect method, whereby net profit before tax is adjusted for the effects of transactions of a non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from regular revenue generating, investing and financing activities of the Company are segregated. The Cash flow statement is separately attached with the Financial Statements of the company.

4 Net Profit or Loss for the Period, Prior Period Items and Changes in Accounting Policies

The prior period expenses are charged separately to the profit and loss account, except relating to sites and construction divisions, which have been charged to Work in Progress. There is no change in the accounting policy during the year.

5 Depreciation Accounting

Depreciation is provided on Written Down Value method on pro-rata basis at the rates as prescribed in Schedule XIV of the Companies Act, 1956 for the period the assets are held by the Company. The same are as given below:

Class of Asset Rate of Depreciation

Air Conditioners & Refrigerators 13.91%

Computers 40%

Furniture, Fixtures & Fittings 18.10%

Land 0%

Office Equipments 13.91%

Plant & Machinery 13.91%

Vehicles 25.89%

Depreciation on car parking spaces is not charged during the year as the management treats the same as Land and not Building.

6 Revenue Recognition

a) The company follows "Percentage of Completion method" of accounting under which Sales Turnover and corresponding Profit/ Loss on each project in progress is accounted for at the year end in the proportion that the actual cost incurred bears to the total estimated cost of such project, subject to actual cost being 30% or more of total estimated cost.

b) The estimates relating to saleable area, sale value, estimated cost etc., are revised and updated periodically by the management and necessary adjustments are made in the current year account.

c) Whereas all income and expenses are accounted for on accrual basis, interest on delayed payments by/to customers against dues are taken into account on "Cash Basis" owing to practical difficulties and uncertainties involved.

d) Dividend income is recognised when the right to receive the dividend is established.

e) The Company pays interest on refund of Registration money received for Future Projects in the eventuality if property is not offered to them by the Company in the project against which such registration amounts are received. In view of the same interest is charged to Profit & Loss Account only when liability of interest crystalizes.

f) Income from works contracts is recognised on the basis of running bills raised during the year. The related costs there against are charged to the profit & loss account.

g) Indirect costs (as detailed in Schedule 11) are treated as "Period Costs" and are charged to Profit and Loss Account in the year in which they are incurred.

7 Accounting for Fixed Assets

Fixed assets are stated at cost less accumulated depreciation. The Gross Block of fixed assets are shown at the cost of acquisition, which includes taxes, duties and other identifiable direct expenses incurred upto the date the asset is put to use. Assets costing less than Rs. 5,000/- are fully depreciated in the year of purchase. There was no revaluation of fixed assets carried out during the year.

8 The Effects of Changes in Foreign Exchange Rates

Transactions in foreign currency are recorded at the exchange rate prevailing on the date of the transaction. Gains/ losses arising due to fluctuation, if any, in the exchange rates are recognised in the Profit & Loss Account in the period in which they arise. There is no gain or loss on account of exchange difference during the year.

9 Accounting for Investments

Investments that are readily realisable and intended to be held for not more than a year are classified as current investments. All other investments are classified as long-term investments. Current investments are carried at lower of cost and fair value determined on an individual investment basis. Long-term investments are carried at cost. However, when there is a decline, other than temporary, in the value of the long term investment, the carrying cost is reduced to recognise the decline.

10 Employee Benefits

a) Provisions for Gratuity and Leave Encashment are made on the basis of Actuarial Valuation Certificate for the year ending 31.03.2011, in accordance with AS-15 (Revised 2005) on 'Employee Benefits'.

b) Provident Fund Contribution made during the year are charged to Profit & loss Account.

11 Borrowing Costs

Borrowing costs which have a direct nexus and are directly attributable to the projects are charged to the projects and other borrowing costs are treated as periodic cost. Borrowing Costs are determined in accordance with the provisions of AS-16.

Borrowing Costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to revenue.

During the current year, no borrowing costs were capitalized in accordance with the provisions of AS-16. (Previous Year : NIL)

12 Segment Reporting

a) Having regard to the integrated nature of the Real Estate Development business of the company, the disclosure requirement of "Segment Reporting" pursuant to the Accounting Standard (AS-17) is not applicable.

b) The company's Construction business, in terms of revenue, result and asset empolyed, is not reportable segment as per the Accounting Standard (AS-17) on "Segment Reporting".

13 Related Party Disclosure

The Details are stated in the financial notes below which are not reproduced here.

14 Leases Financial Lease :

The company does not have any item covered under finance lease which needs disclosure as per Accounting Standard (AS-19) on "Leases".

Operating Lease :

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

15 Earnings Per Share

In determining earnings per share, the Company considers the net profit after tax and includes the post-tax effect of any extraordinary / exceptional item. The number of shares used in computing basic earnings per share is the weighted average number of shares outstanding during the period. The number of shares used in computing diluted earnings per share comprises the weighted average shares considered for deriving basic earnings per share, and also the weighted average number of equity shares that could have been issued on the conversion of all dilutive potential equity shares. The details are stated in the financial notes below which are not reproduced here.

16 Consolidated Financial Statements

Consolidated financial statements of the company and its subsidiaries M/s Ansal Real Estate Developers Private Limited, M/s Lancer Resorts and Tours Private Limited, M/s Potent Housing & Construction Private Limited, M/s Sabina Park Resorts and Marketing Private Limited and M/s Triveni Apartments Private Limited, all incorporated in India, are enclosed separately.

17 Accounting for Taxes on Income Income Tax

Income-tax expense comprises of current tax being amount of tax determined in accordance with the Income-tax law. A provision is made for income-tax annually.

Deferred Tax

a) Current tax is determined as the amount of tax payable as per Income Tax Act, 1961.

b) Deferred Tax is recognized, subject to the consideration of Prudence, on Timing Differences being differences between taxable income and accounting income, that originate in one period and are capable of being reversed in one or more subsequent periods, to the extent the timing differences are expected to crystalise.

c) The carrying amount of deferred tax assets are reviewed at each balance sheet date. The Company writes down the carrying amount of a deferred tax asset to the extent that it is no longer reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available against which deferred tax asset can be realised. Any such write down is reversed to the extent that it becomes reasonably certain or virtually certain, as the case may be that sufficient future taxable income will be available.

18 Financial Reporting of Interests in Joint Ventures

The management has applied AS 27, Financial Reporting of Interests in Joint Ventures, in accounting for interests in joint venture and the reporting of joint venture assets, liabilities, income and expenses in the financial statements of venturer, regardless of the structures or forms under which the joint venture activities take place. The details are stated in the financial notes below which are not reproduced here.

19 Impairment of Assets

At the Balance Sheet date an assessment is done to determine whether there is any indication of impairment in the carrying amount of the company's fixed assets. If any such indication exist the asset's recoverable amount is estimated. An impairment loss is recognised whenever the carrying amount of an asset exceeds it's recoverable amount. After the recognition of impairment loss the depreciation charged for the assets is adjusted in future periods to allocate the asset's revised carrying amount less the residual value, if any, on the written down value basis over it's useful remaining life.

20 Provisions, Contingent Liabilities and Contingent Assets

The company recognises a provision when there is a present obligation as a result of a past event that probable requires an outflow of resources and a reliable estimate can be made of the amount of obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not require an outflow of resources.

Provisions are reviewed at each Balance Sheet date and adjusted to reflect the current best estimate. If it is no longer probable that the outflow of resources would be required to settle the obligation, the provision is reversed.

Contingent assets are not recognised in the financial statements. However, contingent assets are assessed continually and if it is virtually cetain that an economic benefit will arise, the asset and related income are recognised in the period in which the change occurs.

---

Mar 31, 2010

1. Disclosure of Accounting Policies

The Financial statements are prepared and presented under the historical cost convention on the accrual basis of accounting and Generally Accepted Accounting Principles (GAAP) which include compliance with the Acounting Standards prescribed by the Companies (Accounting Standards) Rules, 2006, and the relevant provisions of the Companies Act, 1956, to the extent applicable. The management evaluates all the recently issued or revised Accounting Standards on an ongoing basis.

Use of Estimates

The preparation of the financial statements in confirmity with GAAP requires the Management to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to contingent assets and liabilities as at the date of financial statements and reported amounts of income and expenses during the period. Actual results could differ from the estimates. Any revision to accounting estimates is recognised prospectively in current and future periods.

2. Valuation of Inventories

Projects in progress includes the value of materials and stores at sites. Inventories are valued as under:

a) Flats/Shops/Houses/Plots At lower of cost or market value

b) Projects in Progress At cost

c) Stores & Spares At cost

3. Cash Flow Statements

Cash flows are reported using the indirect method, whereby net profit before tax is adjusted for the effects of transactions of a non–cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from regular revenue generating, investing and financing activities of the Company are segregated. The Cash flow statement is separately attached with the Financial Statements of the company.

4. Net Profit or Loss for the Period, Prior Period Items and Changes in Accounting Policies

The prior period expenses are charged separately to the profit and loss account, except relating to sites and construction divisions, which have been charged to Work in Progress. There is no change in the accounting policy during the year.

5. Depreciation Accounting

Depreciation is provided on Written Down Value method on pro–rata basis at the rates as prescribed in Schedule XIV of the Companies Act, 1956 for the period the assets are held by the Company. The same are as given below:

Depreciation on car parking spaces is not charged during the year as the management treats the same as Land and not Building.

6 Revenue Recognition

a) The company follows "Percentage of Completion method" of accounting under which Sales Turnover and corresponding Profit/ Loss on each project in progress is accounted for at the year end in the proportion that the actual cost incurred bears to the total estimated cost of such project, subject to actual cost being 30% or more of total estimated cost.

b) The estimates relating to saleable area, sale value, estimated cost etc., are revised and updated periodically by the management and necessary adjustments are made in the current years account.

c) Whereas all income and expenses are accounted for on accrual basis, interest on delayed payments by/to customers against dues are taken into account on "Cash Basis" owing to practical difficulties and uncertainties involved. Dividend income is recognised when the right to receive the dividend is established.

The Company pays interest on refund of Registration money received for Future Projects in the eventuality if property is not offered to them by the Company in the project against which such registration amounts are received. In view of the same interest is charged to Profit & Loss Account only when liability of interest crystalizes.

d) Income from works contracts is recognised on the basis of running bills raised during the year. The related costs there against are charged to the profit & loss account.

e) Indirect costs (as detailed in Schedule 11) are treated as "Period Costs" and are charged to Profit and Loss Account in the year in which they are incurred.

7 Accounting for Fixed Assets

Fixed assets are stated at cost less accumulated depreciation. The Gross Block of fixed assets are shown at the cost of acquisition, which includes taxes, duties and other identifiable direct expenses incurred upto the date the asset is put to use. Assets costing less than Rs. 5,000/– are fully depreciated in the year of purchase. There was no revaluation of fixed assets carried out during the year.

8 The Effects of Changes in Foreign Exchange Rates

Transactions in foreign currency are recorded at the exchange rate prevailing on the date of the transaction.

9 Accounting for Investments

Investments that are readily realisable and intended to be held for not more than a year are classified as current investments. All other investments are classified as long–term investments. Current investments are carried at lower of cost and fair value determined on an individual investment basis. Long–term investments are carried at cost. However, when there is a decline, other than temporary, in the value of the long term investment, the carrying cost is reduced to recognise the decline.

10 Employee Benefits

a) Provisions for Gratuity and Leave Encashment are made on the basis of Actuarial Valuation Certificate for the year ending 31.03.2010, in accordance with AS–15 (Revised 2005) on ‘Employee Benefits.

b) Provident Fund Contribution made during the year are charged to Profit & Loss Account.

11 Borrowing Costs

Borrowing costs which have a direct nexus and are directly attributable to the projects are charged to the projects and other borrowing costs are treated as periodic cost.

12 Segment Reporting

Having regard to the integrated nature of the Real Estate Development/ Construction business of the company, the requirement of Segment Reporting persuant to AS–17 is not applicable.

13 Related Party Disclosure

The Details are stated in the financial notes below which are not reproduced here.

14 Leases

Operating Lease

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

15 Earnings Per Share

In determining earnings per share, the Company considers the net profit after tax and includes the post–tax effect of any extraordinary / exceptional item. The number of shares used in

computing basic earnings per share is the weighted average number of shares outstanding during the period. The number of shares used in computing diluted earnings per share comprises the weighted average shares considered for deriving basic earnings per share, and also the weighted average number of equity shares that could have been issued on the conversion of all dilutive potential equity shares.

The details are stated in the financial notes below which are not reproduced here. There is no diluted Earning per Share as there are no dilutive potential equity shares.

16 Consolidated Financial Statements

Consolidated financial statements of the company and its subsidiary M/s Ansal Chaudhary Developers Private Limited (Nepal), M/s Rahul Buildwell Private Limited (Nepal), M/s Rahul Township Private Limited (Nepal), M/s AC Shelter Private Limited (Nepal), M/s AC Infrastructure & Development Private Limited (Nepal), all of them being incorporated in NEPAL and M/s Ansal Real Estate Developers Pvt Ltd,M/s Lancer Resorts and Tours Pvt Ltd, M/s Potent Housing & Construction Pvt Ltd,M/s Sabina Park Resorts and Marketing Pvt Ltd and M/s Triveni Apartments Pvt Ltd , all incorporated in India, are enclosed separately.

17 Accounting for Taxes on Income

Income Tax

Income–tax expense comprises of current tax being amount of tax determined in accordance with the Income–tax law. A provision is made for income–tax annually, based on the tax liability computed after considering tax allowances and exemptions.

Deferred Tax

a) Current tax is determined as the amount of tax payable as per Income Tax Act, 1961.

b) Deferred Tax is recognized, subject to the consideration of Prudence, on Timing Differences being differences between taxable income and accounting income, that originate in one period and are capable of being reversed in one or more subsequent periods, to the extent the timing differences are expected to crystalise.

c) The carrying amount of deferred tax assets are reviewed at each balance sheet date. The Company writes down the carrying amount of a deferred tax asset to the extent that it is no longer reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available against which deferred tax asset can be realised. Any such write down is reversed to the extent that it becomes reasonably certain or virtually certain, as the case may be that sufficient future taxable income will be available.

Fringe Benefit Tax

No Provision for Fringe Benefit Tax (FBT) has been made as on 31st March,2010, as the same has been abolished by the Finance Act, 2009.

18 Financial Reporting of Interests in Joint Ventures

The management has applied AS 27, Financial Reporting of Interests in Joint Ventures, in accounting for interests in joint venture and the reporting of joint venture assets, liabilities, income and expenses in the financial statements of venturer, regardless of the structures or forms under which the joint venture activities take place. The details are stated in the financial notes below which are not reproduced here.

19 Impairment of Assets

At the Balance Sheet date an assessment is done to determine whether there is any indication of impairment in the carrying amount of the companys fixed assets. If any such indication exist the assets recoverable amount is estimated. An impairment loss is recognised whenever the carrying amount of an asset exceeds its recoverable amount. After the recognition of impairment loss the depreciation charged for the assets is adjusted in future periods to allocate the assets revised carrying amount less the residual value, if any, on the written down value basis over its useful remaining life.

20 Provisions, Contingent Liabilities and Contingent Assets

The company recognises a provision when there is a present obligation as a result of a past event that probable requires an outflow of resources and a reliable estimate can be made of the amount of obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not require an outflow of resources. Provisions are reviewed at each Balance Sheet date and adjusted to reflect the current best estimate. If it is no longer probable that the outflow of resources would be required to settle the obligation, the provision is reversed.

Contingent assets are not recognised in the financial statements. However, contingent assets are assessed continually and if it is virtually cetain that an economic benefit will arise, the asset and related income are recognised in the period in which the change occurs.