Accounting Policies of Arihant Foundations & Housing Ltd. Company

Mar 31, 2025

2. SUMMARY OF SIGNIFICANT
ACCOUNTING POLICIES

a) Basis of preparation and presentation of
financial statements

i) Accounting convention

The financial statements are prepared in accordance with
the Indian Accounting Standards (Ind AS) notified under the
Companies (Indian Accounting Standards) Rules, 2015 as
amended by the Companies (Indian Accounting Standards)
Amendment Rules, 2016.

All amounts included in the financial statements are reported
in Indian Rupees ('').

ii) Basis of measurement

The financial statements have been prepared on an accrual
basis and in accordance with the historical cost convention,
unless otherwise stated. These financial statements comply
in all material aspects with Indian Accounting Standards (Ind
AS) notified under Section 133 of the Companies Act, 2013
(the Act) [Companies (Indian Accounting Standards) Rules,
2015] and other relevant provisions of the Act. All assets and
liabilities are classified into current and non-current based
on the operating cycle of less than twelve months or based
on the criteria of realisation/settlement within twelve months
period from the balance sheet date.

b) Use of estimates

The preparation of the financial statements requires
management to make judgements, estimates and
assumptions that affect 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.

The Company bases its estimates and assumptions on
parameters available when the financial statements were
prepared. Existing circumstances and assumptions about
future developments, however, may change due to market
changes or circumstances arising that are beyond the
control of the Company. Such changes are reflected in the
assumptions when they occur

Significant management judgements

The following are significant management judgements in
applying the accounting policies of the Company that have
the most significant effect on the financial statements.

Classification of leases

The Company enters into leasing arrangements for various
assets. The classification of the leasing arrangement as a
finance lease or operating lease is based on an assessment
of several factors, including, but not limited to, transfer of
ownership of leased asset at end of lease term, lessee’s
option to purchase and estimated certainty of exercise of
such option, proportion of lease term to the asset’s economic
life, proportion of present value of minimum lease payments
to fair value of leased asset and extent of specialised nature
of the leased asset.

Recognition of deferred tax assets

The extent to which deferred tax assets can be recognised
is based on an assessment of the probability that future
taxable income will be available against which the deductible
temporary differences and tax loss carry forward can be
utilised. In addition, significant judgement is required in
assessing the impact of any legal or economic limits or
uncertainties in various tax jurisdictions.

Evaluation of indicators for impairment of assets

The evaluation of applicability of indicators of impairment of
assets requires assessment of several external and internal
factors which could result in deterioration of recoverable
amount of the assets. In assessing impairment, management
estimates the recoverable amount of each asset or cash
generating units based on expected future cash flows and
uses an interest rate to discount them. Estimation uncertainty
relates to assumptions about future operating results and the
determination of a suitable discount rate.

Recoverability of advances/receivables

At each balance sheet date, based on historical default rates
observed over expected life, the management assesses
the expected credit loss on outstanding receivables and
advances.

Useful lives of depreciable/amortisable assets

Management reviews its estimate of the useful lives of
depreciable/amortisable assets at each reporting date, based
on the expected utility of the assets. Uncertainties in these
estimates relate to technical and economic obsolescence
that may change the utility of certain items of property, plant
and equipment.

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.

Fair value measurements

Management applies valuation techniques to determine the
fair value of financial instruments (where active market quotes

are not available) and non-financial assets. This involves
developing estimates and assumptions consistent with how
market participants would price the instrument. Management
bases its assumptions on observable data as far as possible
but this is not always available. In that case management uses
the best information available. Estimated fair values may vary
from the actual prices that would be achieved in an arm’s
length transaction at the reporting date.

c) Current versus non-current classification

The Company presents assets and liabilities in the balance
sheet based on current/non-current classification.

An asset is treated as current when it is:

- Expected to be realized or intended to be sold or
consumed in normal operating cycle;

- Held primarily for the purpose of trading;

- Expected to be realized within twelve months after the
reporting period, or

- Cash or cash equivalent 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 current when:

- It is expected to be settled in normal operating cycle;

- It is held primarily for the purpose of trading;

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

- 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.

The operating cycle is the time between the acquisition of
assets for processing and their realization in cash and cash
equivalents. The Company has evaluated and considered its
operating cycle as 12 months.

d) Property, plant and equipment

Property, plant and equipment are stated at cost, less
accumulated depreciation and impairment, if any. Costs
directly attributable to acquisition are capitalised until the
property, plant and equipment are ready for use, as intended
by management.

Advances paid towards the acquisition of property, plant
and equipment outstanding at each balance sheet date
is classified as capital advances under other non-current
assets and the cost of assets not put to use before such date
are disclosed under ‘Capital work-in-progress’. Subsequent
expenditures relating to property, plant and equipment is

capitalised only when it is probable that future economic
benefits associated with these will flow to the Company and
the cost of the item can be measured reliably.

The cost and related accumulated depreciation are eliminated
from the financial statements upon sale or retirement of the
asset and the resultant gains or losses are recognised in the
statement of profit and loss. Assets to be disposed off are
reported at the lower of the carrying value or the fair value less
cost to sell.

Property, plant and equipment [other than freehold land and
lease hold land (perpetual lease)] are depreciated under
straight line method ("SLM method") over the estimated useful
lives of the assets, which are prescribed under Schedule II to
the Companies Act, 2013.

Useful life adopted by the Company for various class of assets
is as follows:

The Company has evaluated the applicability of component
accounting as prescribed under Ind AS 16 and Schedule II of
the Companies Act, 2013, the management has not identified
any significant component having different useful lives.

Depreciation methods, useful lives and residual values are
reviewed periodically and updated at each financial year end.

e) Intangible assets

The Company has elected to continue with the carrying
value for all of its intangible assets as recognized in its
Previous GAAP financial statements as deemed cost at the
transition date, viz., 1 April 2016.

Intangible assets are recorded at the consideration paid for
the acquisition of such assets and are carried at cost less
accumulated amortisation and impairment. Advances paid
towards the acquisition of intangible assets outstanding at
each balance sheet date are disclosed as other non-current
assets and the cost of intangible assets not ready for their
intended use before such date are disclosed as intangible
assets under development.

Gains or losses arising from derecognition of an intangible
asset are measured as the difference between the net
disposal proceeds and the carrying amount of the asset and
are recognised in the statement of profit and loss when the
asset is derecognised.

The residual values, useful lives and methods of amortization
of intangible assets are reviewed at each financial year end
and adjusted prospectively, if appropriate.

f) Impairment of property, plant and equipment
and intangible assets

At each reporting date, the Company assesses whether there
is any indication that an asset may be impaired, based on
internal or external factors. If any such indication exists, the
Company estimates the recoverable amount of the asset or
the cash generating unit. If such recoverable amount of the
asset or cash generating unit to which the asset belongs is
less than its carrying amount, the carrying amount is reduced
to its recoverable amount. The reduction is treated as an
impairment loss and is recognised in the statement of profit
and loss. If, at the reporting date there is an indication that a
previously assessed impairment loss no longer exists, the
recoverable amount is reassessed and the asset is reflected
at the recoverable amount. Impairment losses previously
recognised are accordingly reversed in the statement of profit
and loss.

Intangible assets that have an indefinite useful life are not
subject to amortisation and are tested annually for impairment,
or more frequently if events or changes in circumstances
indicate that they might be impaired. Other assets are tested
for impairment whenever events or changes in circumstances
indicate that the carrying amount may not be recoverable.

g) Revenue recognition
Revenue from projects

The Company has adopted Ind AS 115 “Revenue from
Contracts with Customers” effective April 1, 2018. Ind AS 115
supersedes Ind AS 11 “Construction Contracts” and Ind AS
18 “Revenue”. The Company has applied Ind AS 115 using the
modified retrospective method.

The Company recognises revenue from contracts with
customers when it satisfies a performance obligation by
transferring promised good or service to a customer. The
revenue is recognised to the extent of transaction price
allocated to the performance obligation satisfied.

Performance obligation is satisfied over time when the
transfer of control of asset (good or service) to a customer is
done over time and in other cases, performance obligation is
satisfied at a point in time.

For performance obligation satisfied over time, the revenue
recognition is done by measuring the progress towards
complete satisfaction of performance obligation. The
progress is measured in terms of a proportion of actual cost
incurred to-date, to the total estimated cost attributable to the
performance obligation.

Transaction price is the amount of consideration to which the
Company expects to be entitled in exchange for transferring
good or service to a customer excluding amounts collected
on behalf of a third party. Variable consideration is estimated
using the expected value method or most likely amount as
appropriate in a given circumstance.

Payment terms agreed with a customer are as per business
practice and there is no financing component involved in
the transaction price. Costs to obtain a contract which are
incurred regardless of whether the contract was obtained
are charged-off in Profit & Loss immediately in the period in
which such costs are incurred. Incremental costs of obtaining
a contract, if any, and costs incurred to fulfil a contract are
amortised over the period of execution of the contract in
proportion to the progress measured in terms of a proportion
of actual cost incurred to-date, to the total estimated cost
attributable to the performance obligation.

Significant judgments are used in:

1. Determining the revenue to be recognised in case of
performance obligation satisfied over a period of time;
revenue recognition is done by measuring the progress
towards complete satisfaction of performance obligation.
The progress is measured in terms of a proportion of
actual cost incurred to-date, to the total estimated cost
attributable to the performance obligation.

2. Determining the expected losses, which are recognised
in the period in which such losses become probable
based on the expected total contract cost as at the
reporting date.

Revenue from construction/project related activity is
recognised as follows:

1. Cost plus contracts: Revenue from cost plus contracts
is recognized over time and is determined with reference
to the extent performance obligations have been
satisfied. The amount of transaction price allocated to
the performance obligations satisfied represents the
recoverable costs incurred during the period plus the
margin as agreed with the customer.

2. Fixed price contracts: Contract revenue is recognised
over time to the extent of performance obligation
satisfied and control is transferred to the customer.
Contract revenue is recognised at allocable transaction
price which represents the cost of work performed
on the contract plus proportionate margin, using the
percentage of completion method. Percentage of
completion is the proportion of cost of work performed
to-date, to the total estimated contract costs.

Rental income

Income from rentals are recognized as an income in the
statement of profit and loss on a straight-line basis over
the lease term except where scheduled increase in rent
compensates the Company with expected inflationary costs.

Interest income

Interest income is reported on an accrual basis using the
effective interest method and is included under the head
“other income” in the statement of profit and loss.

Dividend income

Income from dividends are recognized when the Company’s
right to receive the payment is established, it is probable
that the economic benefits associated with the dividend will

flow to the Company, and the amount of the dividend can be
measured reliably.

h) Inventories
Raw materials

Inventory includes raw materials used for the construction
activity of the Company. Raw materials are valued at the lower
of cost and net realizable value with the cost being determined
on a ‘First In First Out’ basis.

Properties under development

Properties under development represents construction work
in progress which are stated at the lower of cost and net
realizable value. This comprises of cost of land, construction
related overhead expenditure, borrowing costs and other net
costs incurred during the period of development.

Properties held for sale

"Completed properties held for sale are stated at the lower
of cost and net realizable value. Cost includes cost of land,
construction related overhead expenditure, borrowing costs
and other costs incurred during the period of development.
Net realizable value is the estimated selling price in the ordinary
course of business less estimated costs of completion and
estimated costs necessary to make the sale.

Properties held for development

Properties held for development represents land acquired for
future development and construction, and is stated at cost
including the cost of land, the related costs of acquisition
and other costs incurred to get the properties ready for their
intended use.

i) Employee benefits

Expenses and liabilities in respect of employee benefits are
recorded in accordance with Ind AS 19, Employee Benefits.

Defined contribution plan

The Company’s contribution to provident fund is charged to the
statement of profit and loss or inventorized as a part of project
under development, as the case may be. The Company’s
contributions towards provident fund are deposited with
a government administered fund, in accordance with
Employees’ Provident Funds and Miscellaneous Provisions
Act, 1952.

Defined benefit plan
(i) Gratuity

The liability or asset recognised in the balance sheet in respect
of defined benefit gratuity plans is the present value of the
defined benefit obligation at the end of the reporting period
less the fair value of plan assets (if any). The cost of providing
benefits under the defined benefit plan is determined using
the projected unit credit method.

The present value of the defined benefit obligation
denominated in '' is determined by discounting the estimated
future cash outflows by reference to market yields at the end
of the reporting period on government bonds that have terms
approximating to the terms of the related obligation.

Service cost on the Company’s defined benefit plan is included
in employee benefits expense. Employee contributions, all of
which are independent of the number of years of service, are
treated as a reduction of service cost. Net interest expense on
the net defined benefit liability is included in finance costs.

Gains and losses through re-measurements of the defined
benefit plans are recognized in other comprehensive income,
which are not reclassified to profit or loss in a subsequent
period.

Short-term employee benefits

Short-term employee benefits comprise of employee costs
such as salaries, bonus etc. is recognized on the basis of the
amount paid or payable for the period during which services
are rendered by the employee.

j) Leases

"The determination of whether an arrangement is (or
contains) a lease is based on the substance of the
arrangement at the inception of the lease. The arrangement
is, or contains, a lease if fulfilment of the arrangement is
dependent on the use of a specific asset or assets and the
arrangement conveys a right to use the asset or assets,
even if that right is not explicitly specified in an arrangement.
For arrangements entered into prior to 1 April 2016 (date of
transition to Ind AS), the Company has determined whether
the arrangement contain lease on the basis of facts and
circumstances existing on the date of transition.

Finance Lease

A lease is classified at the inception date as a finance lease
or an operating lease. A lease that transfers substantially all
the risks and rewards incidental to ownership to the Company
is classified as a finance lease. Finance leases are capitalised
at the commencement of the lease at fair value of the leased
property or, if lower, at the present value of the minimum lease
payments, each determined at the inception of the lease.
Lease payments are apportioned between finance charges
and reduction of the lease liability so as to achieve a constant
rate of interest on the remaining balance of the liability. Finance
charges are recognised in finance costs in the statement of
profit and loss.

A leased asset is depreciated on a straight-line basis over the
useful life of the asset or the useful life, whichever is lower.
However, if there is no reasonable certainty that the Company
will obtain the ownership by the end of the lease term, the
capitalised asset is depreciated on a straight-line basis over
the shorter of the estimated useful life of the asset or the lease
period.

Operating Lease

Leases in which a significant portion of the risks and rewards
of ownership are not transferred to the Company as lessee
are classified as operating leases. Payments made under
operating leases (net of any incentives received from the
lessor) are charged to profit or loss on a straight-line basis over
the period of the lease unless the payments are structured to
increase in line with expected general inflation to compensate
for the lessor’s expected inflationary cost increases.

k) Foreign currency transactions
Functional and presentation currency

The functional currency of the Company is the Indian Rupee
(''). These financial statements are presented in Indian
Rupees ('').

Transactions and balances

Foreign currency transactions are 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 Statement of Profit or Loss.

- Foreign exchange differences regarded as an
adjustment to borrowing costs are presented in the
statement of profit and loss, within finance costs. All
other foreign exchange gains and losses are presented
in the statement of profit and loss on a net basis within
other gains/(losses).

- Non-monetary items that are measured at fair value in
a foreign currency are translated using the exchange
rates at the date when the fair value was determined.
Translation differences on assets and liabilities carried
at fair value are reported as part of the fair value gain or
loss.

l) Borrowing costs

Borrowing costs directly attributable to the acquisition,
construction or production of an asset that necessarily takes
a substantial period of time to get ready for its intended use
or sale are capitalised as part of the cost of the asset. All
other borrowing costs are expensed in the period in which
they occur. Borrowing costs consist of interest and other
costs that an entity incurs in connection with the borrowing of
funds. Borrowing cost also includes exchange differences to
the extent regarded as an adjustment to the borrowing costs.

m) Investments in subsidiaries

The Company’s investment in equity instruments in
subsidiaries are accounted for at cost. Where the carrying
amount of an investment in greater than its estimated
recoverable amount, it is written down immediately to its
recoverable amount and the difference is transferred to
the statement of profit and loss. On disposal of investment,
the difference between the net disposal proceeds and the
carrying amount is charged or credited to the statement of
profit and loss.

n) Government Grants

Government grants are recognised where there is reasonable
assurance that the grant will be received and all attached
conditions will be complied with. When the grant relates to an
expense item, it is recognised as income on a systematic basis
over the periods that the related costs, for which it is intended
to compensate, are expensed. When the grant relates to an
asset, it is adjusted against the cost of the depreciable asset,
to which the grant relates to, on receipt of such subsidy.

o) Income taxes

Income tax expense comprises current and deferred income
tax. Current and deferred tax is recognised in the statement
of profit and loss, except to the extent that it relates to items
recognised in other comprehensive income or directly
in equity In this case, the tax is also recognised in other
comprehensive income or directly in equity respectively

Current income tax for current and prior periods is recognised
at the amount expected to be paid to or recovered from the
tax authorities, using the tax rates and tax laws that have been
enacted or substantively enacted at the balance sheet date.

Deferred tax is recognized on temporary differences at the
balance sheet date between the tax bases of assets and
liabilities and their carrying amounts for financial reporting
purposes, except when the deferred income tax arises from
the initial recognition of goodwill or an asset or liability in a
transaction that is not a business combination and affects
neither accounting nor taxable profit or loss at the time of the
transaction.

Deferred income tax assets are recognized for all deductible
temporary differences, carry forward of unused tax credits
and unused tax losses, to the extent that it is probable that
taxable profit will be available against which the deductible
temporary differences, and the carry forward of unused tax
credits and unused tax losses can be utilized.

The carrying 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 part of the deferred tax asset to be utilised.
Unrecognised deferred tax assets are re-assessed 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 relating to items recognised outside profit
or loss is recognised outside profit or loss (either in other
comprehensive income or in equity). Deferred tax items are
recognised in correlation to the underlying transaction either
in OCI or directly in equity

"Deferred income tax assets and liabilities are measured
using tax rates and tax laws that have been enacted or
substantively enacted at the balance sheet date and are
expected to apply to taxable income in the years in which
those temporary differences are expected to be recovered or
settled. The effect of changes in tax rates on deferred income
tax assets and liabilities is recognised as income or expense
in the period that includes the enactment or the substantive
enactment date.

A deferred income tax asset is recognised to the extent that
it is probable that future taxable profit will be available against
which the deductible temporary differences and tax losses
can be utilised. The Company offsets current tax assets and
current tax liabilities, where it has a legally enforceable right
to setoff the recognised amounts and where it intends either
to settle on a net basis, or to realise the asset and settle the
liability simultaneously

---

Mar 31, 2024

1. Background

ArihantFoundations&Housing Limited("the company")wasincorporated on 6th March, 1992 as a limited company.Thecompany engagedinthe businessof constructions of residential,commercial complexes and IT parks.

2. Summaryofsignificantaccountingpolicies

a) Basisofpreparationandpresentation offinancialstatements

i) Accounting convention

The financial statements are prepared in accordance with the Indian Accounting Standards (Ind AS) notified under the Companies (Indian Accounting Standards) Rules, 2015 as amended by the Companies (Indian AccountingStandards)AmendmentRules,2016.

ANamountsincludedinthefinancial statements are reported in Indian Rupees (^).

ii) Basis of measurement

The financial statements have been prepared on an accrual basis and in accordance with the historical cost convention, unless otherwise stated. These financial statements comply in all material aspects with Indian Accounting Standards (Ind AS) notified under Section 133 of the Companies Act, 2013 (the Act) [Companies (Indian Accounting Standards) Rules, 2015] and other relevant provisions of the Act. All assets and liabilities are classified into current and non-current based on the operating cycle of less than twelve months or based on the criteria of realisation/settlement within twelve months period from the balance sheet date.

b) Use of estimates

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect 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.

The Company bases its estimates and assumptions on parameters available when the financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Company. Such changes are reflected in the assumptions when they occur.

Significant management judgements

The following are significant management judgements in applying the accounting policies of the Company that have the most significant effect on the financial statements.

Classification of leases

The Company enters into leasing arrangements for various assets. The classification of the leasing arrangement as a finance lease or operating lease is based on an assessment of several factors, including, but not limited to, transfer of ownership of leased asset at end of lease term, lessee''s option to purchase and estimated certainty of exercise of such option, proportion of lease term to the asset''s economic life, proportion of present value of minimum lease payments to fair value of leased asset and extent of specialised nature of the leased asset.

Recognition of deferred tax assets

The extent to which deferred tax assets can be recognised is based on an assessment of the probability that future taxable income will be available against which the deductible temporary differences and tax loss carry forward can be utilised. In addition, significant judgement is required in assessing the impact of any legal or economic limits or uncertainties in various tax jurisdictions

Evaluationofindicatorsforimpairmentofassets

The evaluation of applicability of indicators of impairment of assets requires assessment of several external and internal factors which could result in deterioration of recoverable amount of the assets. In assessing impairment, management estimates the recoverable amount of each asset or cash generating units based on expected future cash flows and uses an interest rate to discount them. Estimation uncertainty relates to assumptions about future operating results and the determination of a suitable discount rate.

Recoverabilityofadvances / receivables

At eachbalancesheetdate,based onhistorical defaultrates observed over expected life, the management assessestheexpectedcreditlossonoutstandingreceivablesand advances.

Usefullivesofdepreciable/amortisable assets

Management reviews its estimate of the useful lives of depreciable / amortisable assets at each reporting date, basedontheexpectedutilityof theassets.Uncertaintiesinthese estimates relate to technical and economic obsolescencethatmaychangetheutility ofcertainitemsofproperty, plant and equipment.

b) Use ofestimates (Continued)

Definedbenefitobligation(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.

Fair value measurements

Management applies valuation techniques to determine the fair value of financial instruments (where active market quotes are not available) and non-financial assets. This involves developing estimates and assumptions consistent with how market participants would price the instrument. Management bases its assumptions on observable data as far as possible but this is not always available. In that case management uses the best information available. Estimated fair values may vary from the actual prices that would be achieved in an arm''s length transaction at the reporting date.

c) Current versus non-current classification

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

- Expected to be realized or intended to be sold or consumed in normal operating cycle;

- Held primarily for the purpose of trading;

- Expected to be realized within twelve months after the reporting period, or

Cash or cash equivalent 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 current when:

- It is expected to be settled in normal operating cycle;

- It is held primarily for the purpose of trading;

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

- 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.

The operating cycle is the time between the acquisition of assets for processing and their realization in cash and cash equivalents. The Company has evaluated and considered its operating cycle as 12 months.

d)Property, plantandequipment

Property, plant and equipment are stated at cost, less accumulated depreciation and impairment, if any. Costs directly attributable to acquisition are capitalised until the property, plant and equipment are ready for use, as intended by management.

Advances paid towards the acquisition of property, plant and equipment outstanding at each balance sheet date is classified as capital advances under other non-current assets and the cost of assets not put to use before suchdate are disclosed under‘Capitalwork-in-progress''.Subsequent expenditures relating to property, plant and equipment is capitalised only when it is probable that future economic benefits associated with these will flowtothe companyand thecostofthe itemcanbe measuredreliably.

The cost and related accumulated depreciation are eliminated from the financial statements upon sale or retirement of the asset and the resultant gains or losses are recognised in the statement of profit and loss. Assets to be disposed off are reported at the lower of the carrying value or the fair value less cost to sell.

Property,plantand equipment [other thanfreeholdland and lease hold land (perpetual lease)] are depreciated under straightline method("SLM method")overthe estimateduseful lives of the assets, which are prescribed under ScheduleIIto the CompaniesAct, 2013.

Useful lifeadoptedbytheCompany for various class of assets is as follows:

Assets	Useful Lives
Vehicles
Motor cycle / Two Wheelers	8 Years
Motor cars	10 Years
On Furniture and fixtures	10 Years
On Office equipments	5 Years
On Computers & Accessories	3 years

The Company has evaluated the applicability of component accounting as prescribed under Ind AS 16 and Schedule II of the Companies Act, 2013, the management has not identified any significant component having different useful lives.

Depreciation methods, useful lives and residual values are reviewed periodically and updated at each financial year end.

e) Intangible assets

The Company has elected to continue with the carrying value for all of its intangible assets as recognized in its Previous GAAP financial statements as deemed cost at the transition date, viz., 1 April 2016.

Intangible assets are recorded at the consideration paid for the acquisition of such assets and are carried at cost less accumulated amortisation and impairment. Advances paid towards the acquisition of intangible assets outstanding at each balance sheet date are disclosed as other non-current assets and the cost of intangible assets not ready for their intended use before such date are disclosed as intangible assets under development.

Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognised in the statement of profit and loss when the asset is derecognised.

The residual values, useful lives and methods of amortization of intangible assets are reviewed at each financial year end and adjusted prospectively, if appropriate.

f) Impairment of property, plant and equipment and intangible assets

At each reporting date, the Company assesses whether there is any indication that an asset may be impaired, based on internal or external factors. If any such indication exists, the Company estimates the recoverable amount of the asset or the cash generating unit. If such recoverable amount of the asset or cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognised in the statement of profit and loss.

If,at thereportingdatethere isanindicationthatapreviously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount. Impairment losses previouslyrecognised areaccordinglyreversedin thestatementofprofit and loss.

Intangible assets that have an indefinite useful life are not subject to amortisation and are tested annually for impairment, or more frequently if events or changes in circumstances indicate that they might be impaired. Other assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amountmaynot berecoverable.

g) Revenue recognition

Revenuefromprojects

TheCompanyhasadoptedIndAS115 “Revenue fromContracts with Customers” effective April 1, 2018. Ind AS 115 supersedes Ind AS 11 “Construction Contracts” and Ind AS 18 “Revenue”. The Company has applied Ind AS 115 using the modified retrospective method and the cumulative impact of transition to Ind AS 115 has been adjusted against the Retained earnings as at April 1, 2018. Accordingly, the figures of the previous year are not restatedunderIndAS115.

The Company recognises revenue from contracts with customers when it satisfies a performance obligation by transferringpromisedgood orservice to a customer. The revenue is recognised to the extent of transaction price allocated to the performance obligation satisfied. Performance obligation is satisfied over time when the transfer of control of asset (good or service) to a customer is done over time and in other cases, performance obligation is satisfied at a point in time. For performance obligation satisfied over time, the revenue recognition is done by measuring the progress towards complete satisfaction of performance obligation. The progress is measured in terms of a proportion of actual cost incurred to-date, to the total estimated cost attributable to the performance obligation.

Transaction price is the amount of consideration to which the Company expects to be entitled in exchange for transferring good or service to a customer excluding amounts collected on behalf of a third party. Variable consideration is estimated using the expected value method or most likely amount as appropriate in a given circumstance. Payment terms agreed with a customer are as per business practice and there is no financing component involved in the transaction price.

C osts to obtain a contract which are incurred regardless of whether the contract was obtained are charged-off in Profit & Loss immediately in the period in which such costs are incurred. Incremental costs of obtaining a contract, if any, and costs incurred to fulfil a contract are amortised over the period of execution of the contract in proportion to the progress measured in terms of a proportion of actual cost incurred to-date, to the total estimated cost attributable to the performance obligation.

Significant judgments are used in:

1. Determining the revenue to be recognised in case of performance obligation satisfied over a period of time; revenue recognition is done by measuring the progress towards complete satisfaction of performance obligation. The progress is measured in terms of a proportion of actual cost incurred to-date, to the total estimated cost attributable to the performance obligation.

2. Determining the expected losses, which are recognised in the period in which such losses become probable based on the expected total contract cost as at the reporting date. Revenue from construction/project related activity is recognised as follows:

1. Cost plus contracts: Revenue from cost plus contracts is recognized over time and is determined with reference to the extent performance obligations have been satisfied. The amount of transaction price allocated to the performance obligations satisfied represents the recoverable costs incurred during the period plus the margin as agreed with the customer.

2. Fixed price contracts: Contract revenue is recognised over time to the extent of performance obligation satisfied and control is transferred to the customer. Contract revenue is recognised at allocable transaction price which represents the cost of work performed on the contract plus proportionate margin, using the percentage of completion method. Percentage of completion is the proportion of cost of work performed to-date, to the total estimated contract costs.

Rental income

Income from rentals are recognized as an income in the statement of profit and loss on a straight-line basis over the lease term except where scheduled increase in rent compensates the Company with expected inflationary costs.

Interest income

Interest income is reported on an accrual basis using the effective interest method and is included under the head“otherincome”inthestatement of profitand loss.

Dividend income

Income fromdividends arerecognizedwhentheCompany''sright to receive the payment is established, it is probable that the economic benefits associated with the dividend will flow to the Company, and the amount of the dividend can be measured reliably.

h) Inventories Rawmaterials

Inventory includes rawmaterials used for the construction activity of the Company. Raw materials are valued at the lower of cost and net realizable value with the cost being determined on a ‘First In First Out'' basis.

Properties under development

Properties under development represents construction work in progress which are stated at the lower of cost and net realizable value. This comprises of cost of land, construction related overhead expenditure, borrowing costs and other net costs incurred during the period of development.

Properties held for sale

“Completed properties held for sale are stated at the lower of cost and net realizable value. Cost includes cost of land, construction related overhead expenditure, borrowing costs and other costs incurred duringthe period ofdevelopment. Net realizable value is the estimated selling price in the ordinary course of business less estimated costs of completion and estimated costs necessary to make the sale.”

Properties held for development

Properties held for development represents land acquired for future development and construction, and is stated at cost including the cost of land, the related costs of acquisition and other costs incurred to get the properties ready for their intended use.

i) Employee benefits

Expenses and liabilities in respect of employee benefits are recorded in accordance with Ind AS 19, Employee Benefits.

Defined contribution plan

The Company''s contribution to provident fund is charged to the statement of profit and loss or inventorized as a part of project under development, as the case may be. The Company''s contributions towards provident fund are deposited with a government administered fund, in accordance with Employees'' Provident Funds and Miscellaneous Provisions Act, 1952.

Defined benefit plan

(i) Gratuity

The liability or asset recognised in the balance sheet in respect of defined benefit gratuity plans is the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets (if any). The cost of providing benefits under the defined benefit plan is determined using the projected unit credit method.

The present value of the defined benefit obligation denominated in ^ is determined by discounting the estimated future cash outflows by reference to market yields at the end of the reporting period on government bonds that have terms approximating to the terms of the related obligation.

“Service cost on the Company''s defined benefit plan is included in employee benefits expense. Employee contributions, all of which are independent of the number of years of service, are treated as a reduction of service cost. Net interest expense on the net defined benefit liability is included in finance costs. Gains and losses through re-measurements of the defined benefit plans are recognized in other comprehensive income, which are not reclassified to profit or loss in a subsequent period.

i) Employee benefits (Continued)

Short-termemployeebenefits

Short-term employee benefits comprise of employee costs such as salaries, bonus etc. is recognized on the basis oftheamountpaidorpayablefortheperiodduringwhich servicesare rendered by the employee

j) Leases

The determination of whether an arrangement is (or contains) a lease is based on the substance of the arrangement at the inception of the lease. The arrangement is, or contains, a lease if fulfilment of the arrangement is dependent on the use of a specific asset or assets and the arrangement conveys a right to use the asset or assets, even if that right is not explicitly specified in an arrangement. Forarrangementsentered into priorto 1 April 2016(dateoftransition to Ind AS), the Company has determined whetherthearrangementcontain lease on the basis of facts and circumstances existing on the date of transition.

Finance Lease

A lease is classified at the inception date as a finance lease or an operating lease. A lease that transfers substantially all the risks and rewards incidental to ownership to the Company is classified as a finance lease. Finance leases are capitalised at the commencement of the lease at fair value of the leased property or, if lower, at the present value of the minimum lease payments, each determined at the inception of the lease. Lease payments are apportioned between finance charges and reduction of the lease liability so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are recognised in finance costs in the statement of profit and loss.

A leased asset is depreciated on a straight-line basis over the useful life of the asset or the useful life, whichever is lower. However, if there is no reasonable certainty that the company will obtain the ownership by the end of the lease term, the capitalised asset is depreciated on a straight-line basis over the shorter of the estimated useful life of the asset or the lease period.

Operating Lease

Leases in which a significant portion of the risks and rewards of ownership are not transferred to the Company as lessee are classified as operating leases. Payments made under operating leases (net of any incentives received from the lessor) are charged to profit or loss on a straight-line basis over the period of the lease unless the payments are structured to increase in line with expected general inflation to compensate for the lessor''s expected inflationary cost increases.

k) Foreign currency transactions Functional and presentation currency

The functional currency of the Company is the Indian Rupee (^). These financial statements are presented in Indian Rupees (^) Transactions and balances

Foreign currency transactions are 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 Statement of Profit or Loss.

-Foreign exchange differences regarded as an adjustment to borrowing costs are presented in the statement of profit and loss, within finance costs. All other foreign exchange gains and losses are presented in the statement of profit and loss on a net basis within other gains/(losses).

-Non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined. Translation differences on assets and liabilities carried at fair value are reported as part of the fair value gain or loss.

l) Borrowingcosts

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalised as part of the cost of the asset. All other borrowing costs are expensed in the period in which they occur. Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds. Borrowing cost also includes exchange differences to the extent regarded as an adjustment to the borrowing costs.

m) Investmentsinsubsidiaries

The Company''s investment inequityinstruments insubsidiariesare accounted for at cost. Where the carrying amountof aninvestmentin greaterthan itsestimatedrecoverable amount, it is written down immediately to its recoverable amount and the difference is transferred to the statement of profit and loss. On disposal of investment,the differencebetweenthenetdisposalproceeds and the carrying amount is charged or credited to the statement of profit and loss.

n) GovernmentGrants

Government grants are recognised where there is reasonable assurance that the grant will be received and allattached conditionswillbecompliedwith.When the grantrelates to an expense item, it is recognised as incomeon a systematic basisover the periods that the related costs, for which it is intended to compensate, are expensed. When the grant relates to an asset, it is adjusted against the cost of the depreciable asset, to which the grant relates to, on receipt of such subsidy.

o) Income taxes

Income tax expense comprises current and deferred income tax. Current and deferredtaxis recognised inthe statement of profit and loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, the tax is also recognised in other comprehensive income or directly in equity, respectively. Current income tax for current and prior periods is recognised at the amount expected to be paid to or recovered from the tax authorities, using the tax rates and tax laws that have been enacted or substantively enacted at the balance sheet date.

Deferred tax is recognized on temporary differences at the balance sheet date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes, except when the deferred income tax arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and affects neither accounting nor taxable profit or loss at the time of the transaction.

Deferred income tax assets are recognized for all deductible temporary differences, carry forward of unused tax credits and unused tax losses, to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilized.

The carrying 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 part of the deferred tax asset to be utilised. Unrecognised deferred tax assets are re-assessed 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 relating to items recognised outside profit or loss is recognised outside profit or loss (either in other comprehensive income or in equity). Deferred tax items are recognised in correlation to the underlying transaction either in OCI or directly in equity.

Deferred income tax assets and liabilities are measured using tax rates and tax laws that have been enacted or substantively enacted at the balance sheet date and are expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of changes in tax rates on deferred income tax assets and liabilities is recognised as income or expense in the period that includes the enactment or the substantive enactment date. A deferred income tax asset is recognised to the extent that it is probable that future taxable profit will be available against which the deductible temporary differences and tax losses can be utilised. The Company offsets current tax assets and current tax liabilities, where it has a legally enforceable right to setoff the recognised amounts and where it intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

p) Provisionsandcontingencies Provisions

A provision is recognised if, as a result of a past event, the Company has a present legal or constructive obligation that is reasonably estimable, and it is probable that an outflow of economic benefits will be required to settle the obligation. If the effect of the time value of money is material, provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The increase in the provision due to the passage of time is recognised as interest expense.

Contingentliabilities

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed 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 is not recognised because it is not probable that an outflow of resources will be required to settle the obligation or it cannot be measured with sufficient reliability. The Company does not recognise acontingentliabilitybut discloses its existencein thefinancial statements.

Contingent assets

Contingent assets are neither recognised nor disclosed. However, when realisation of income is virtually certain, related asset is recognised.

q) Financial instruments Financial assets

Initial recognition and measurement

Financial assets (other than trade receivables) are recognized when the Company becomes a party to the contractual provisions of the financial instrument and are measured initially at fair value adjusted for transaction costs, except for those carried at fair value through statement of profit and loss which are measured initially at fair value. Subsequent measurement of financial assets is described below. Trade receivables are recognized at their transaction price as the same do not contain significant financing component.

Subsequent measurement

“For the purpose of subsequent measurement, financial assets are classified and measured based on the entity''s business model for managing the financial asset and the contractual cash flow characteristics of the financial asset at:

a. Amortized cost

b. Fair Value Through Other Comprehensive Income (FVTOCI) or

c. Fair Value Through Profit or Loss (FVTPL)”

All financial assets are reviewed for impairment at least at each reporting date to identify whether there is any objective evidence that a financial asset or a group of financial assets is impaired. Different criteria to determine impairment are applied for each category of financial assets, which are described below.

q) Financial instruments (Continued)

(i) Financial asset at amortised cost

“Includes assets that are held within a business model where the objective is to hold the financial assets to collect contractual cash flows and the contractual terms gives rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. These assets are measured subsequently at amortized cost using the effective interest method. The loss allowance at each reporting period is evaluated based on the expected credit losses for next 12 months and credit risk exposure. The Company shall also measure the loss allowance for a financial instrument at an amount equal to the lifetime expected credit losses if the credit risk on that financial instrument has increased significantly since initial recognition.

(ii) FinancialassetsatFairValueThroughOtherComprehensive Income (FVTOCI)

Includes assets that are held within a business model where the objective is both collecting contractual cash flows and selling financial assets along with the contractual terms giving rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. At initial recognition, the Company, based on its assessment, makes an irrevocable election to present in other comprehensive income the changes in the fair value of an investment in an equity instrument that is not held for trading. These elections aremadeonaninstrument-byinstrument(i.e. share-by-share) basis. If the Company decides to classify an equityinstrumentasatFVTOCI,then allfairvalue changeson the instrument, excluding dividends, impairment gains or losses and foreign exchange gains and losses, are recognized in other comprehensive income. There is no recycling of the amounts from OCI to profit or loss, even on sale of investment. The dividends from such instruments arerecognizedinstatementofprofitandloss.

The fair value of financial assets in this category are determined by reference to active market transactions or using a valuation technique where no active market exists.

The loss allowance at each reporting period is evaluated based on the expected credit losses for next 12 months and credit risk exposure. The Company shall also measure the loss allowance for a financial instrument at an amount equal to the lifetime expected credit losses if the credit risk on that financial instrument has increased significantly since initial recognition. The loss allowance shall be recognized in other comprehensive income and shall not reduce the carrying amount of the financial asset in the balance sheet.

(iii) Financial assets at Fair Value Through Profit or Loss (FVTPL)

Financial assets at FVTPL include financial assets that are designated at FVTPL upon initial recognition and financial assets that are not measured at amortized cost or at fair value through other comprehensive income. All derivative financial instruments fall into this category, except for those designated and effective as hedging instruments, for which the hedge accounting requirements apply. Assets in this category are measured at fair value with gains or losses recognized in statement of profit and loss. The fair value of financial assets in this category are determined by reference to active market transactions or using a valuation technique where no active market exists.

The loss allowance at each reporting period is evaluated based on the expected credit losses for next 12 months and credit risk exposure. The Company shall also measure the loss allowance for a financial instrument at an amount equal to the lifetime expected credit losses if the credit risk on that financial instrument has increased significantly since initial recognition. The loss allowance shall be recognized in the statement of profit and loss.

De-recognition of financial assets

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily derecognized (i.e. removed from the Company''s standalone balance sheet) 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 (i) the Company has transferred substantially all the risks and rewards of the asset, or (ii) the Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

When the Company has transferred its rights to receive cash flows from an asset or has entered into a passthrough arrangement, it evaluates if and to what extent it has retained the risks and rewards of ownership. When it has neither transferred nor retained substantially all of the risks and rewards of the asset, nor transferred control of the asset, the Company continues to recognise the transferred asset to the extent of the Company''s continuing involvement. In that case, the Company also recognises an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the Company has retained.

Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original carrying amount of the asset and the maximum amount of consideration that the Company could be required to repay.

Financialliabilities

Initial recognition and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and borrowings, payables, or as derivatives designated as hedging instruments in an effective hedge, as appropriate.

All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, netof directly attributabletransactioncosts.

The Company''s financial liabilities include trade and other payables, loans and borrowings including, financial guarantee contracts.

Subsequent measurement

Themeasurement offinancialliabilitiesdependson their classification, as described below: Financialliabilitiesatfairvaluethroughprofitorloss

Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated upon initial recognition as at fair value through profit or loss. Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the near term. This category also includes derivative financial instruments entered into by the Company that are not designated as hedging instruments in hedge relationships as defined by Ind AS 109 Financial Instruments.

Gains or losses on liabilities held for trading are recognised in the profit or loss.

Financial liabilities designated upon initial recognition at fair value through profit or loss are designated as such at the initial date of recognition, and only if the criteria in Ind AS 109 are satisfied. For liabilities designated as FVTPL, fair value gains/ losses attributable to changes in own credit risk are recognized in OCI. These gains/ loss are not subsequently transferred to P&L. However, the Company may transfer the cumulative gain or loss within equity. All other changes in fair value of such liability are recognised in the statement of profit or loss. The Company has not designated any financial liability as at fair value through profit and loss.

Loans and borrowings

This is the category most relevant to the Company. After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the EIR method. Gains and losses are recognised in profit or loss when the liabilities are derecognised as well as through the EIR amortisation process. Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included as finance costs in the statement of profit and loss.

Derecognition of financial liabilities

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 modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the statement of profit and loss.

Offsetting of financial instruments

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

r) Impairment of financial assets

In accordance with Ind AS 109 Financial Instruments, the Company applies expected credit loss (ECL) model for measurement and recognition of impairment loss for financial assets.

The Company tracks credit risk and changes thereon for each customer. For recognition of impairment loss on other financial assets and risk exposure, the Company determines that whether there has been a significant increase in the credit risk since initial recognition. If credit risk has not increased significantly, 12-month ECL is used to provide for impairment loss.

ECL is the difference between all contractual cash flows that are due to the Company in accordance with the contract and all the cash flows that the entity expects to receive (i.e., all cash shortfalls), discounted at the originalEIR.Whenestimatingthecashflows,anentityisrequiredto consider:

-All contractual terms of the financial instrument over the expected life of the financial instrument. However, in rare cases when the expected life of the financial instrument cannot be estimated reliably, then the entity uses the remaining contractual term of the financial instrument.

- Cash flows from the sale of collateral held or other credit enhancements that are integral to the contractual terms.

TheCompanyuses defaultrateforcredit risktodetermineimpairment loss allowance on portfolio of its trade receivables.

Trade receivables

TheCompany appliesapproach permitted byIndAS109Financial Instruments, which requires expected lifetime lossestoberecognised frominitialrecognitionofreceivables.

Otherfinancialassets

For recognition of impairment loss on other financial assets and risk exposure, the Company determines whether there has been a significant increase in the credit risk since initial recognition and if credit risk has increased significantly, impairment loss is provided.”

s) Fair value measurement

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. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:

- In the principal market for the asset or liability, or

- In the absence of a principal market, in the most advantageous market for the asset or liability The principal or the most advantageous market must be accessible by the Company.

The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest.

A fair value measurement of a non-financial asset takes into account a market participant''s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities

Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable

Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable

t) Cash and cash equivalents

Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term deposits with an original maturity of three months or less, which are subject to an insignificant risk of changes in value. For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and short-term deposits, as defined above, as they are considered an integral part of the Company’s cash management.

u) Segmentreporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The Company is primarily engaged in the business of real estate development and related activities including construction which constitutes its single reportable segment.

v) Earnings/ (Loss) per Share (EPS)

Basic EPS are calculated by dividing the net profit or loss for the period attributable to equity shareholders by theweighted averagenumberofequity sharesoutstanding during the period. Partly paid equity shares are treatedasafractionofanequityshare totheextentthatthey areentitled to participate in dividends relative to a fullypaidequityshareduringthereporting period. The weightedaverage number of equity shares outstanding during the period is adjusted for events such as bonus issue that have changed the number of equity shares outstanding,withoutacorrespondingchangeinresources.

Diluted EPS amounts are calculated by dividing the profit attributable to equity holders of the Company (after adjustingforintereston theconvertible preferenceshares,if any) by the weighted average number of equity shares outstandingduring theyearplus the weightedaverage number of equity shares that would be issued onconversionof all the dilutive potentialequity sharesintoequity shares. Dilutive potential equity shares are deemed converted as of the beginning of the period, unless issued at a later date. Dilutive potential equity shares aredeterminedindependentlyfor each period presented.

w) Cash flow statement

Cash flows are reported using the indirect method, whereby profit/(loss) before tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future receipts or payments. In the cash flow statement, cash and cash equivalents includes cash in hand, cheques on hand, balances with banks in current accounts and other short- term deposits with original maturities of 3 months or less, as applicable.

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Mar 31, 2023

2. Summary of significant accounting policies

a) Basis of preparation and presentation of financial statements

i) Accounting convention

The financial statements are prepared in accordance with the Indian Accounting Standards (Ind AS) notified under the Companies (Indian Accounting Standards) Rules, 2015 as amended by the Companies (Indian Accounting Standards) Amendment Rules, 2016.

All amounts included in the financial statements are reported in Indian Rupees (?).

ii) Basis of measurement

The financial statements have been prepared on an accrual basis and in accordance with the historical cost convention, unless otherwise stated. These financial statements comply in all material aspects with Indian Accounting Standards (Ind AS) notified under Section 133 of the Companies Act, 2013 (the Act) [Companies (Indian Accounting Standards) Rules, 2015] and other relevant provisions of the Act. All assets and liabilities are classified into current and non-current based on the operating cycle of less than twelve months or based on the criteria of realisation/settlement within twelve months period from the balance sheet date.

b) Use of estimates

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect 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.

The Company bases its estimates and assumptions on parameters available when the financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Company. Such changes are reflected in the assumptions when they occur.

Significant management judgements

The following are significant management judgements in applying the accounting policies of the Company that have the most significant effect on the financial statements.

Classification of leases

The Company enters into leasing arrangements for various assets. The classification of the leasing arrangement as a finance lease or operating lease is based on an assessment of several factors, including, but not limited to, transfer of ownership of leased asset at end of lease term, lessee''s option to purchase and estimated certainty of exercise of such option, proportion of lease term to the asset''s economic life, proportion of present value of minimum lease payments to fair value of leased asset and extent of specialised nature of the leased asset.

Recognition of deferred tax assets

The extent to which deferred tax assets can be recognised is based on an assessment of the probability that future taxable income will be available against which the deductible temporary differences and tax loss carry forward can be utilised. In addition, significant judgement is required in assessing the impact of any legal or economic limits or uncertainties in various tax jurisdictions

Evaluation of indicators for impairment of assets

The evaluation of applicability of indicators of impairment of assets requires assessment of several external and internal factors which could result in deterioration of recoverable amount of the assets. In assessing impairment, management estimates the recoverable amount of each asset or cash generating units based on expected future cash flows and uses an interest rate to discount them. Estimation uncertainty relates to assumptions about future operating results and the determination of a suitable discount rate.

Recoverability of advances / receivables

At each balance sheet date, based on historical default rates observed over expected life, the management assesses the expected credit loss on outstanding receivables and advances.

Useful lives of depreciable / amortisable assets

Management reviews its estimate of the useful lives of depreciable / amortisable assets at each reporting date, based on the expected utility of the assets. Uncertainties in these estimates relate to technical and economic obsolescence that may change the utility of certain items of property, plant and equipment.

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.

Fair value measurements

Management applies valuation techniques to determine the fair value of financial instruments (where active market quotes are not available) and non-financial assets. This involves developing estimates and assumptions consistent with how market participants would price the instrument. Management bases its assumptions on observable data as far as possible but this is not always available. In that case management uses the best information available. Estimated fair values may vary from the actual prices that would be achieved in an arm''s length transaction at the reporting date.

c) Current versus non-current classification

The Company presents assets and liabilities in the balance sheet based on current/ non-current classification.

An asset is treated as current when it is:

- Expected to be realized or intended to be sold or consumed in normal operating cycle;

- Held primarily for the purpose of trading;

- Expected to be realized within twelve months after the reporting period, or

- Cash or cash equivalent 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 current when:

- It is expected to be settled in normal operating cycle;

- It is held primarily for the purpose of trading;

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

- 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.

The operating cycle is the time between the acquisition of assets for processing and their realization in cash and cash equivalents. The Company has evaluated and considered its operating cycle as 12 months.

d) Property, plant and equipment

Property, plant and equipment are stated at cost, less accumulated depreciation and impairment, if any. Costs directly attributable to acquisition are capitalised until the property, plant and equipment are ready for use, as intended by management.

Advances paid towards the acquisition of property, plant and equipment outstanding at each balance sheet date is classified as capital advances under other non-current assets and the cost of assets not put to use before such date are disclosed under ''Capital work-in-progress''. Subsequent expenditures relating to property, plant and equipment is capitalised only when it is probable that future economic benefits associated with these will flow to the company and the cost of the item can be measured reliably.

The cost and related accumulated depreciation are eliminated from the financial statements upon sale or retirement of the asset and the resultant gains or losses are recognised in the statement of profit and loss. Assets to be disposed off are reported at the lower of the carrying value or the fair value less cost to sell.

Property, plant and equipment [other than freehold land and lease hold land (perpetual lease)] are depreciated under straight line method (“SLM method”) over the estimated useful lives of the assets, which are prescribed under Schedule II to the Companies Act, 2013.

The Company has evaluated the applicability of component accounting as prescribed under Ind AS 16 and Schedule II of the Companies Act, 2013, the management has not identified any significant component having different useful lives.

Depreciation methods, useful lives and residual values are reviewed periodically and updated at each financial year end.

e) Intangible assets

The Company has elected to continue with the carrying value for all of its intangible assets as recognized in its Previous GAAP financial statements as deemed cost at the transition date, viz., 1 April 2016.

Intangible assets are recorded at the consideration paid for the acquisition of such assets and are carried at cost less accumulated amortisation and impairment. Advances paid towards the acquisition of intangible assets outstanding at each balance sheet date are disclosed as other non-current assets and the cost of intangible assets not ready for their intended use before such date are disclosed as intangible assets under development.

Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognised in the statement of profit and loss when the asset is derecognised.

The residual values, useful lives and methods of amortization of intangible assets are reviewed at each financial year end and adjusted prospectively, if appropriate.

f) Impairment of property, plant and equipment and intangible assets

At each reporting date, the Company assesses whether there is any indication that an asset may be impaired, based on internal or external factors. If any such indication exists, the Company estimates the recoverable amount of the asset or the cash generating unit. If such recoverable amount of the asset or cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognised in the statement of profit and loss. If, at the reporting date there is an indication that a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount. Impairment losses previously recognised are accordingly reversed in the statement of profit and loss.

Intangible assets that have an indefinite useful life are not subject to amortisation and are tested annually for impairment, or more frequently if events or changes in circumstances indicate that they might be impaired. Other assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.

g) Revenue recognition Revenue from projects

“The Company has adopted Ind AS 115 “Revenue from Contracts with Customers” effective April 1,2018. Ind AS 115 supersedes Ind AS 11 “Construction Contracts” and Ind AS 18 “Revenue”. The Company has applied Ind AS 115 using the modified retrospective method and the cumulative impact of transition to Ind AS 115 has been adjusted against the Retained earnings

as at April 1,2018. Accordingly, the figures of the previous year are not restated under Ind AS 115. The Company recognises revenue from contracts with customers when it satisfies a performance obligation by transferring promised good or service to a customer. The revenue is recognised to the extent of transaction price allocated to the performance obligation satisfied. Performance obligation is satisfied over time when the transfer of control of asset (good or service) to a customer is done over time and in other cases, performance obligation is satisfied at a point in time. For performance obligation satisfied over time, the revenue recognition is done by measuring the progress towards complete satisfaction of performance obligation. The progress is measured in terms of a proportion of actual cost incurred to-date, to the total estimated cost attributable to the performance obligation. Transaction price is the amount of consideration to which the Company expects to be entitled in exchange for transferring good or service to a customer excluding amounts collected on behalf of a third party. Variable consideration is estimated using the expected value method or most likely amount as appropriate in a given circumstance. Payment terms agreed with a customer are as per business practice and there is no financing component involved in the transaction price. Costs to obtain a contract which are incurred regardless of whether the contract was obtained are charged-off in Profit & Loss immediately in the period in which such costs are incurred. Incremental costs of obtaining a contract, if any, and costs incurred to fulfil a contract are amortised over the period of execution of the contract in proportion to the progress measured in terms of a proportion of actual cost incurred to-date, to the total estimated cost attributable to the performance obligation.

Significant judgments are used in:

1. Determining the revenue to be recognised in case of performance obligation satisfied over a period of time; revenue recognition is done by measuring the progress towards complete satisfaction of performance obligation. The progress is measured in terms of a proportion of actual cost incurred to-date, to the total estimated cost attributable to the performance obligation.

2. Determining the expected losses, which are recognised in the period in which such losses become probable based on the expected total contract cost as at the reporting date.

Revenue from construction/project related activity is recognised as follows:

1. Cost plus contracts: Revenue from cost plus contracts is recognized over time and is determined with reference to the extent performance obligations have been satisfied. The amount of transaction price allocated to the performance obligations satisfied represents the recoverable costs incurred during the period plus the margin as agreed with the customer.

2. Fixed price contracts: Contract revenue is recognised over time to the extent of performance obligation satisfied and control is transferred to the customer. Contract revenue is recognised at allocable transaction price which represents the cost of work performed on the contract plus proportionate margin, using the percentage of completion method. Percentage of completion is the proportion of cost of work performed to-date, to the total estimated contract costs.”

Rental income

Income from rentals are recognized as an income in the statement of profit and loss on a straight-line basis over the lease term except where scheduled increase in rent compensates the Company with expected inflationary costs.

Interest income

Interest income is reported on an accrual basis using the effective interest method and is included under the head “other income” in the statement of profit and loss.

Dividend income

Income from dividends are recognized when the Company''s right to receive the payment is established, it is probable that the economic benefits associated with the dividend will flow to the Company, and the amount of the dividend can be measured reliably.

h) Inventories Raw materials

Inventory includes raw materials used for the construction activity of the Company. Raw materials are valued at the lower of cost and net realizable value with the cost being determined on a ''First In First Out'' basis.

Properties under development

Properties under development represents construction work in progress which are stated at the lower of cost and net realizable value. This comprises of cost of land, construction related overhead expenditure, borrowing costs and other net costs incurred during the period of development.

Properties held for sale

“Completed properties held for sale are stated at the lower of cost and net realizable value. Cost includes cost of land, construction related overhead expenditure, borrowing costs and other costs incurred during the period of development. Net realizable value is the estimated selling price in the ordinary course of business less estimated costs of completion and estimated costs necessary to make the sale.

Properties held for development

Properties held for development represents land acquired for future development and construction, and is stated at cost including the cost of land, the related costs of acquisition and other costs incurred to get the properties ready for their intended use.

i) Employee benefits

Expenses and liabilities in respect of employee benefits are recorded in accordance with Ind AS 19, Employee Benefits. Defined contribution plan

The Company''s contribution to provident fund is charged to the statement of profit and loss or inventorized as a part of project under development, as the case may be. The Company''s contributions towards provident fund are deposited with a government administered fund, in accordance with Employees'' Provident Funds and Miscellaneous Provisions Act, 1952.

Defined benefit plan

(i) Gratuity

The liability or asset recognised in the balance sheet in respect of defined benefit gratuity plans is the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets (if any). The cost of providing benefits under the defined benefit plan is determined using the projected unit credit method.

The present value of the defined benefit obligation denominated in '' is determined by discounting the estimated future cash outflows by reference to market yields at the end of the reporting period on government bonds that have terms approximating to the terms of the related obligation.

Service cost on the Company''s defined benefit plan is included in employee benefits expense. Employee contributions, all of which are independent of the number of years of service, are treated as a reduction of service cost. Net interest expense on the net defined benefit liability is included in finance costs. Gains and losses through re-measurements of the defined benefit plans are recognized in other comprehensive income, which are not reclassified to profit or loss in a subsequent period.

Short-term employee benefits Short-term employee benefits comprise of employee costs such as salaries, bonus etc. is recognized on the basis of the amount paid or payable for the period during which services are rendered by the employee

j) Leases

The determination of whether an arrangement is (or contains) a lease is based on the substance of the arrangement at the inception of the lease. The arrangement is, or contains, a lease if fulfilment of the arrangement is dependent on the use of a specific asset or assets and the arrangement conveys a right to use the asset or assets, even if that right is not explicitly specified in an arrangement. For arrangements entered into prior to 1 April 2016 (date of transition to Ind AS), the Company has determined whether the arrangement contain lease on the basis of facts and circumstances existing on the date of transition.

Finance Lease

A lease is classified at the inception date as a finance lease or an operating lease. A lease that transfers substantially all the risks and rewards incidental to ownership to the Company is classified as a finance lease. Finance leases are capitalised at the commencement of the lease at fair value of the leased property or, if lower, at the present value of the minimum lease payments, each determined at the inception of the lease. Lease payments are apportioned between finance charges and reduction of the lease liability so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are recognised in finance costs in the statement of profit and loss.

A leased asset is depreciated on a straight-line basis over the useful life of the asset or the useful life, whichever is lower. However, if there is no reasonable certainty that the company will obtain the ownership by the end of the lease term, the capitalised asset is depreciated on a straight-line basis over the shorter of the estimated useful life of the asset or the lease period.

Operating Lease

Leases in which a significant portion of the risks and rewards of ownership are not transferred to the Company as lessee are classified as operating leases. Payments made under operating leases (net of any incentives received from the lessor) are charged to profit or loss on a straight-line basis over the period of the lease unless the payments are structured to increase in line with expected general inflation to compensate for the lessor''s expected inflationary cost increases.

k) Foreign currency transactions

Functional and presentation currency

The functional currency of the Company is the Indian Rupee (''). These financial statements are presented in Indian Rupees ('')

Transactions and balances

Foreign currency transactions are 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 Statement of Profit or Loss.

- Foreign exchange differences regarded as an adjustment to borrowing costs are presented in the statement of profit and loss, within finance costs. All other foreign exchange gains and losses are presented in the statement of profit and loss on a net basis within other gains/(losses).

- Non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined. Translation differences on assets and liabilities carried at fair value are reported as part of the fair value gain or loss.

l) Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalised as part of the cost of the asset. All other borrowing costs are expensed in the period in which they occur. Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds. Borrowing cost also includes exchange differences to the extent regarded as an adjustment to the borrowing costs.

m) Investments in subsidiaries

The Company''s investment in equity instruments in subsidiaries are accounted for at cost. Where the carrying amount of an investment in greater than its estimated recoverable amount, it is written down immediately to its recoverable amount and the difference is transferred to the statement of profit and loss. On disposal of investment, the difference between the net disposal proceeds and the carrying amount is charged or credited to the statement of profit and loss.

n) Government Grants

Government grants are recognised where there is reasonable assurance that the grant will be received and all attached conditions will be complied with. When the grant relates to an expense item, it is recognised as income on a systematic basis over the periods that the related costs, for which it is intended to compensate, are expensed. When the grant relates to an asset, it is adjusted against the cost of the depreciable asset, to which the grant relates to, on receipt of such subsidy.

o) Income taxes

Income tax expense comprises current and deferred income tax. Current and deferred tax is recognised in the statement of profit and loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, the tax is also recognised in other comprehensive income or directly in equity, respectively. Current income tax for current and prior periods is recognised at the amount expected to be paid to or recovered from the tax authorities, using the tax rates and tax laws that have been enacted or substantively enacted at the balance sheet date.

Deferred tax is recognized on temporary differences at the balance sheet date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes, except when the deferred income tax arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and affects neither accounting nor taxable profit or loss at the time of the transaction.

Deferred income tax assets are recognized for all deductible temporary differences, carry forward of unused tax credits and unused tax losses, to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilized.

The carrying 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 part of the deferred tax asset to be utilised. Unrecognised deferred tax assets are re-assessed 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 relating to items recognised outside profit or loss is recognised outside profit or loss (either in other comprehensive income or in equity). Deferred tax items are recognised in correlation to the underlying transaction either in OCI or directly in equity.

Deferred income tax assets and liabilities are measured using tax rates and tax laws that have been enacted or substantively enacted at the balance sheet date and are expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of changes in tax rates on deferred income tax assets and liabilities is recognised as income or expense in the period that includes the enactment or the substantive enactment date. A deferred income tax asset is recognised to the extent that it is probable that future taxable profit will be available against which the deductible temporary differences and tax losses can be utilised. The Company offsets current tax assets and current tax liabilities, where it has a legally enforceable right to setoff the recognised amounts and where it intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

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Mar 31, 2016

COMPANY OVERVIEW

The company, Arihant Foundations and Housing Ltd was incorporated on 6th March, 1992. The Company is engaged in the business of real estate development of residential, commercial complexes and IT Parks.

NOTE-1: SIGNIFICANT ACCOUNTING POLICIES

A. BASIS OF PREPARATION

a) The financial statements have been prepared on accrual basis of accounting under the historical cost convention in accordance with the generally accepted accounting principles in India.

b) Accounting policies not specially referred to otherwise are consistently followed throughout the period under audit and in consonance with the generally accepted accounting principles.

B. USE OF ESTIMATES

The preparation of financial statement in conformity with generally accepted accounting policies requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at date of the financial statements and the reported accounts of revenues and expenses for the years presented. Although these estimates are based upon Management''s best knowledge of current events and actions, actual results could differ from these estimates.

C. FIXED ASSETS AND DEPRECIATION

a) The fixed assets are stated at cost less accumulated depreciation and impairment losses, if any. Cost includes all related expenses incurred up to the date the assets are put to use.

b) Depreciation on fixed assets is provided on straight line method as per rate and manner prescribes in schedule-XIV of the companies Act 1956. The depreciation has been provided at 100% on the Assets purchased during the year the cost of which is less than Rs 5000/-.

D. INTANGIBLES AND AMORTIZATION

Intangible assets are recognized when it is probable that future economic benefits that are attributable to these assets will flow to the company and the cost of the asset can be measured reliably.

E. IMPAIRMENT OF ASSETS

Management at each balance sheet date assesses using internal sources whether there is an indication that an asset or group of assets or a cash generating unit as the case may be, is impaired. Impairment occurs where the carrying value exceeds the higher of value in use represented by present value of future cash flows expected to arise from the continuing use of the asset and its realizable value. The impairment asset is charged off to statement of profit and loss.

F. INVESTMENTS

Trade investments are those made to enhance the Group''s business interests. Investments are classified as either current or long-term, based on the Management''s intention at the time of purchase.

Long-term investments

Long-term investments are stated at cost. However, provision is made for diminution in the value of the asset, which is other than temporary.

Quoted

The company holds investment in quoted securities. They are classified as long-term as the Management intends to hold the same for a period of more than twelve months. These investments are classified as non-trade.

Unquoted

The company holds investment in unquoted securities of its subsidiaries, joint ventures and associates. These investments are classified as trade.

G. INVENTORIES

a) Raw materials and consumables

The cost of inventories comprise of purchase cost and conversion cost, if any.

b) Work -in-progress

Costs generally include cost of land, construction costs, job work allocated borrowing costs and other costs that are attributable to project and such other costs as are specifically chargeable to the project. Work-in-progress are valued at cost less cost of sales.

c) Finished stock

Finished stock consists of completed real estate projects which are unsold at the end of the financial year.

H. BORROWING COST

Borrowing cost that are directly attributable to the acquisition or construction or development of qualifying assets of the company are capitalized until the time all substantial activities necessary to prepare the qualifying assets for the intended use are complete. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use or sale.

Borrowing cost that are attributable to any work-in-progress, qualifying land advances as well as capital work-in-progress are charged to the respective qualifying project. All other borrowing costs, not eligible for inventorisation or capitalization are charged to revenue in the year in which they are incurred.

I. REVENUE RECOGNITION

i) Construction Contracts

In construction contracts, revenue is recognized on percentage of completion method. The revenue is recognized on the basis of the Accounting Standard and as prescribed by Institute of Chartered Accountants of India.

Revenue on sale of land is recognized upon enter in to contract with the customer in the purchase of the said undivided share of land. The revenue also recognized at the time of registration of sale deed or completion of the project whichever is earlier.

ii) Revenue from lease rentals and related income

Lease income is recognized on accrual basis as per the Contract.

iii) Interest Income

Interest is recognized on accrual basis of accounting.

iv) Dividend Income

Dividend income is recognized when the right to receive the same is established or the receipt of the same whichever is earlier.

J. FOREIGN EXCHANGE TRANSACTIONS

The foreign exchange transaction recorded, on initial recognition in the reporting currency, by applying to the foreign currency amount, the prevailing exchange rate, as at the date of transaction.

K. TAXES ON INCOME

Tax expense comprises of current tax and deferred tax.

Current tax is measured at the amount expected to be paid to the tax authorities, using the applicable tax rates and tax laws that are enacted or substantially enacted.

Deferred Tax is recognized on timing differences, being the differences between taxable income and the accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets, subject to consideration of prudence, are recognized and carried forward, only to the extent that there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. The tax effect is calculated on the accumulated timing difference at the year end, based on the tax rates and laws enacted or substantially enacted on the balance sheet date. In situations where the company has unabsorbed depreciation or carry forward tax losses, all deferred tax assets are recognized only if there is virtual certainty supported by convincing evidence that sufficient future taxable income will be available against which such deferred tax asset can be realized. They can be realized against future taxable profits.

L. EMPLOYEE BENEFITS

Liability for employee benefits, both short and long term, for present and past services which are due as per the terms of employment and as required by law are recorded in accordance with Accounting Standard (AS)

15 (Revised) “Employee Benefits” issued by the Institute of Chartered Accountants of India.

i) Gratuity

Gratuity is a defined benefit plan. Liability for gratuity in respect of past services are provided for based on the actuarial valuation carried out annually as at the balanced sheet date by an independent actuary using the Projected Unit Credit (PUC) method.

ii) Provident Fund

The company''s contribution to Provident fund is considered as a defined contribution plan. Company''s contribution to provident fund is charged to the statement of profit and loss when the contribution is due.

M. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Provisions are recognized in respect of liabilities which can be measured only by using a substantial degree of estimation when:

a) the company has a present obligation as a result of past event;

b) a probable outflow of resources embodying economic benefits will be required to settle the obligation; and

c) the amount of obligation can be reliably estimated

Re-imbursement expected in respect of expenditure required to settle a provision is recognized only when it is virtually certain that the reimbursement will be received.

Contingent liability is disclosed in the case of:

a) a present obligation arising from a past event, when it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation.

b) a possible obligation, that arises out of past events and the existence of which will be confirmed only by one or more uncertain future events unless the probability of outflow of resources is remote. Contingents assets are neither recognized nor disclosed. However, when realization of income is virtually certain, related asset is recognized.

N. CASH AND CASH EQUIVALENTS

Cash and cash equivalents comprise cash in hand and at bank and short-term investments with an original maturity of three months or less.

O. EARNINGS PER SHARE

Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. The weighted average number of equity shares outstanding during the period are adjusted for events of bonus issue, share split and share warrants conversion.

Diluted earnings per share is calculated by adjusting net profit or loss for the period attributable to equity shareholders and the weighted number of shares outstanding during the period for the effect of all dilutive potential equity shares.

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Dec 31, 2014

A. BASIS OF PREPARATION

a) The financial statements have been prepared on accrual basis of accounting under the historical cost convention in accordance with the generally accepted accounting principles in India.

b) Accounting policies not specially referred to otherwise are consistently followed throughout the period under audit and in consonance with the generally accepted accounting principles.

B. USE OF ESTIMATES

The preparation of financial statement in conformity with generally accepted accounting policies requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at date of the financial statements and the reported accounts of revenues and expenses for the years presented. Although these estimates are based upon Management''s best knowledge of current events and actions, actual results could differ from these estimates.

C. FIXED ASSETS AND DEPRECIATION

a) The fixed assets are stated at cost less accumulated depreciation and impairment losses, if any. Cost includes all related expenses incurred up to the date the assets are put to use.

b) Depreciation on fixed assets is provided on straight line method as per rate and manner prescribes in schedule- XIV of the companies Act 1956. The depreciation has been provided at 100% on the Assets purchased during the year the cost of which is less than Rs 5000/-.

D. INTANGIBLES AND AMORTIZATION

Intangible assets are recognized when it is probable that future economic benefits that are attributable to these assets will flow to the company and the cost of the asset can be measured reliably.

E. IMPAIRMENT OF ASSETS

Management at each balance sheet date assesses using internal sources whether there is an indication that an asset or group of assets or a cash generating unit as the case may be, is impaired. Impairment occurs where the carrying value exceeds the higher of value in use represented by present value of future cash flows expected to arise from the continuing use of the asset and its realizable value. The impairment asset is charged off to statement of profit and loss.

F. INVESTMENTS

Trade investments are those made to enhance the Group''s business interests. Investments are classified as either current or long-term, based on the Management''s intention at the time of purchase.

Long-term investments

Long-term investments are stated at cost. However, provision is made for diminution in the value of the asset, which is other than temporary.

Quoted

The company holds investment in quoted securities. They are classified as long-term as the Management intends to hold the same for a period of more than twelve months. These investments are classified as non-trade.

Unquoted

The company holds investment in unquoted securities of its subsidiaries, joint ventures and associates. These investments are classified as trade.

G. INVENTORIES

a) Raw materials and consumables

The cost of inventories comprise of purchase cost and conversion cost, if any.

b) Work -in-progress

Costs generally include cost of land, construction costs, job work allocated borrowing costs and other costs that are attributable to project and such other costs as are specifically chargeable to the project. Work-in-progress are valued at cost less cost of sales.

c) Finished stock

Finished stock consists of completed real estate projects which are unsold at the end of the financial year.

H. BORROWING COST

Borrowing cost that are directly attributable to the acquisition or construction or development of qualifying assets of the company are capitalized until the time all substantial activities necessary to prepare the qualifying assets for the intended use are complete. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use or sale.

Borrowing cost that are attributable to any work-in- progress, qualifying land advances as well as capital work-in-progress are charged to the respective qualifying project. All other borrowing costs, not eligible for inventorisation or capitalization are charged to revenue in the year in which they are incurred.

I. REVENUE RECOGNITION

i) Construction Contracts

In construction contracts, revenue is recognized on percentage of completion method. The revenue is recognized on the basis of the Accounting Standard and as prescribed by Institute of Chartered Accountants of India.

Revenue on sale of land is recognized upon enter in to contract with the customer in the purchase of the said undivided share of land. The revenue also recognized at the time of registration of sale deed or completion of the project whichever is earlier.

ii) Revenue from lease rentals and related income

Lease income is recognized on accrual basis as per the Contract.

iii) Interest Income

Interest is recognised on accrual basis of accouting.

iv) Dividend Income

Dividend income is recognized when the right to receive the same is established or the receipt of the same whichever is earlier.

J. FOREIGN EXCHANGE TRANSACTIONS

The foreign exchange transaction recorded, on initial recognition in the reporting currency, by applying to the foreign currency amount, the prevailing exchange rate, as at the date of transaction.

K. TAXES ON INCOME

Tax expense comprises of current tax and deferred tax.

Current tax is measured at the amount expected to be paid to the tax authorities, using the applicable tax rates and tax laws that are enacted or substantially enacted.

Deferred Tax is recognized on timing differences, being the differences between taxable income and the accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets, subject to consideration of prudence, are recognized and carried forward, only to the extent that there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. The tax effect is calculated on the accumulated timing difference at the year end, based on the tax rates and laws enacted or substantially enacted on the balance sheet date. In situations where the company has unabsorbed depreciation or carry forward tax losses, all deferred tax assets are recognized only if there is virtual certainty supported by convincing evidence that sufficient future taxable income will be available against which such deferred tax asset can be realized. They can be realized against future taxable profits.

L. EMPLOYEE BENEFITS

Liability for employee benefits, both short and long term, for present and past services which are due as per the terms of employment and as required by law are recorded in accordance with Accounting Standard (AS) 15 (Revised) "Employee Benefits" issued by the Institute of Chartered Accountants of India.

i) Gratuity

Gratuity is a defined benefit plan. Liability for gratuity in respect of past services are provided for based on the actuarial valuation carried out annually as at the balanced sheet date by an independent actuary using the Projected Unit Credit (PUC) method.

ii) Provident Fund

The company''s contribution to Provident fund is considered as a defined contribution plan. Company''s contribution to provident fund is charged to the statement of profit and loss when the contribution is due.

M. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Provisions are recognized in respect of liabilities which can be measured only by using a substantial degree of estimation when:

a) the company has a present obligation as a result of past event;

b) a probable outflow of resources embodying economic benefits will be required to settle the obligation; and

c) the amount of obligation can be reliably estimated

Re- imbursement expected in respect of expenditure required to settle a provision is recognized only when it is virtually certain that the reimbursement will be received.

Contingent liability is disclosed in the case of:

a) a present obligation arising from a past event, when it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation.

b) a possible obligation, that arises out of past events and the existence of which will be confirmed only by one or more uncertain future events unless the probability of outflow of resources is remote.

Contingents assets are neither recognized nor disclosed. However, when realization of income is virtually certain, related asset is recognized.

N. CASH AND CASH EQUIVALENTS

Cash and cash equivalents comprise cash in hand and at bank and short-term investments with an original maturity of three months or less.

O. EARNINGS PER SHARE

Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. The weighted average number of equity shares outstanding during the period are adjusted for events of bonus issue, share split and share warrants conversion.

Diluted earnings per share is calculated by adjusting net profit or loss for the period attributable to equity shareholders and the weighted number of shares outstanding during the period for the effect of all dilutive potential equity shares.

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Sep 30, 2013

A. BAsis oF PrePArAtion

a) The fnancial statements have been prepared on accrual basis of accounting under the historical cost convention in accordance with the generally accepted accounting principles in India.

b) Accounting policies not specially referred to otherwise are consistently followed throughout the period under audit and in consonance with the generally accepted accounting principles.

B. use oF estimAtes

The preparation of fnancial statement in conformity with generally accepted accounting policies requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at date of the fnancial statements and the reported accounts of revenues and expenses for the years presented. Although these estimates are based upon Management''s best knowledge of current events and actions, actual results could differ from these estimates.

C. FiXed Assets And dePreCiAtion

a) The fxed assets are stated at cost less accumulated depreciation and impairment losses, if any. Cost includes all related expenses incurred up to the date the assets are put to use.

b) Depreciation on fxed assets is provided on straight line method as per rate and manner prescribes in schedule-XIV of the companies Act 1956. The depreciation has been provided at 100% on the Assets purchased during the year the cost of which is less than Rs 5000/-.

d. intAngiBLes And AmortiZAtion

Intangible assets are recognized when it is probable that future economic benefts that are attributable to these assets will fow to the company and the cost of the asset can be measured reliably.

e. imPAirment oF Assets

Management at each balance sheet date assesses using internal sources whether there is an indication that an asset or group of assets or a cash generating unit as the case may be, is impaired. Impairment occurs where the carrying value exceeds the higher of value in use represented by present value of future cash fows expected to arise from the continuing use of the asset and its realizable value. The impairment asset is charged off to statement of proft and loss.

F. inVestments

Trade investments are those made to enhance the Group''s business interests. Investments are classifed as either current or long-term, based on the Management''s intention at the time of purchase.

Long-term investments

Long-term investments are stated at cost. However, provision is made for diminution in the value of the asset, which is other than temporary.

Quoted

The company holds investment in quoted securities. They are classifed as long-term as the Management intends to hold the same for a period of more than twelve months. These investments are classifed as non-trade.

unquoted

The company holds investment in unquoted securities of its subsidiaries, joint ventures and associates. These investments are classifed as trade.

g. inVentories

a) raw materials and consumables

The cost of inventories comprise of purchase cost and conversion cost, if any.

b) Work -in-progress

Costs generally include cost of land, construction costs, job work allocated borrowing costs and other costs that are attributable to project and such other costs as are specifcally chargeable to the project. Work-in-progress are valued at cost less cost of sales.

c) Finished stock

Finished stock consists of completed real estate projects which are unsold at the end of the fnancial year.

h. BorroWing Cost

Borrowing cost that are directly attributable to the acquisition or construction or development of qualifying assets of the company are capitalized until the time all substantial activities necessary to prepare the qualifying assets for the intended use are complete. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use or sale.

Borrowing cost that are attributable to any work-in-progress, qualifying land advances as well as capital work-in-progress are charged to the respective qualifying project. All other borrowing costs, not eligible for inventorisation or capitalization are charged to revenue in the year in which they are incurred.

I. reVenue reCognition

i) Construction Contracts

In construction contracts, revenue is recognized on percentage of completion method. The revenue is recognized on the basis of the Accounting Standard and as prescribed by Institute of Chartered Accountants of India.

Revenue on sale of land is recognized upon enter in to contract with the customer in the purchase of the said undivided share of land. The revenue also recognized at the time of registration of sale deed or completion of the project whichever is earlier.

ii) revenue from lease rentals and related income

Lease income is recognized on accrual basis as per the Contract.

iii) interest income

Interest is recognised on accrual basis of accouting.

iv) dividend income

Dividend income is recognized when the right to receive the same is established or the receipt of the same whichever is earlier.

J. Foreign eXChAnge trAnsACtions

The foreign exchange transaction recorded, on initial recognition in the reporting currency, by applying to the foreign currency amount, the prevailing exchange rate, as at the date of transaction.

K tAXes on inCome

Tax expense comprises of current tax and deferred tax.

Current tax is measured at the amount expected to be paid to the tax authorities, using the applicable tax rates and tax laws that are enacted or substantially enacted.

Deferred Tax is recognized on timing differences, being the differences between taxable income and the accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets, subject to consideration of prudence, are recognized and carried forward, only to the extent that there is a reasonable certainty that suffcient future taxable income will be available against which such deferred tax assets can be realized. The tax effect is calculated on the accumulated timing difference at the year end, based on the tax rates and laws enacted or substantially enacted on the balance sheet date. In situations where the company has unabsorbed depreciation or carry forward tax losses, all deferred tax assets are recognized only if there is virtual certainty supported by convincing evidence that suffcient future taxable income will be available against which such deferred tax asset can be realized. They can be realized against future taxable profts.

L. emPLoYee BeneFits

Liability for employee benefts, both short and long term, for present and past services which are due as per the terms of employment and as required by law are recorded in accordance with Accounting Standard (AS) 15 (Revised) "Employee Benefts" issued by the Institute of Chartered Accountants of India.

i) gratuity

Gratuity is a defned beneft plan. Liability for gratuity in respect of past services are provided for based on the actuarial valuation carried out annually as at the balanced sheet date by an independent actuary using the Projected Unit Credit (PUC) method.

ii) Provident Fund

The company''s contribution to Provident fund is considered as a defned contribution plan. Company''s contribution to provident fund is charged to the statement of proft and loss when the contribution is due.

m. ProVisions, Contingent LiABiLities And Contingent Assets

Provisions are recognized in respect of liabilities which can be measured only by using a substantial degree of estimation when:

a) the company has a present obligation as a result of past event;

b) a probable outfow of resources embodying economic benefts will be required to settle the obligation; and

c) the amount of obligation can be reliably estimated

Re-imbursement expected in respect of expenditure required to settle a provision is recognized only when it is virtually certain that the reimbursement will be received.

Contingent liability is disclosed in the case of:

a) a present obligation arising from a past event, when it is not probable that an outfow of resources embodying economic benefts will be required to settle the obligation.

b) a possible obligation, that arises out of past events and the existence of which will be confrmed only by one or more uncertain future events unless the probability of outfow of resources is remote.

Contingents assets are neither recognized nor disclosed. However, when realization of income is virtually certain, related asset is recognized.

n. CAsh And CAsh eQuiVALents

Cash and cash equivalents comprise cash in hand and at bank and short-term investments with an original maturity of three months or less.

o. eArnings Per shAre

Basic earnings per share is calculated by dividing the net proft or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. The weighted average number of equity shares outstanding during the period are adjusted for events of bonus issue, share split and share warrants conversion.

Diluted earnings per share is calculated by adjusting net proft or loss for the period attributable to equity shareholders and the weighted number of shares outstanding during the period for the effect of all dilutive potential equity shares.

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Sep 30, 2012

A. BASIS OF PREPARATION

a) The financial statements have been prepared under the historical cost convention in accordance with the generally accepted accounting principles in India.

b) Accounting policies not specially referred to otherwise are consistently followed throughout the period under audit and in consonance with the generally accepted accounting principles and provisions.

c) During the year ended 30th September, 2012 the Revised Schedule VI notified under the Companies Act 1956, has become applicable to the company, for the preparation and presentation of its financial statements. The adoption of Revised Schedule VI does not impact the recognition and measurement principles followed by the company for the preparation of financial statements. However it has significant impact on the presentation and disclosures made in the financial statements. The company has also reclassified the previous year figures in accordance with the requirements applicable in the current year.

B. USE OF ESTIMATES

The preparation of financial statement in conformity with generally accepted accounting policies requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at date of the financial statements and the reported accounts of revenues and expenses for the years presented. Although these estimates are based upon Management''s best knowledge of current events and actions, actual results could differ from these estimates.

a) The fixed assets are stated at cost less accumulated depreciation and impairment losses, if any. Cost includes all related expenses incurred up to the date the assets are put to use.

b) Depreciation on fixed assets is provided on straight line method as per rate and manner prescribes in schedule-XIV of the companies Act 1956. The depreciation has been provided at 100% on the Assets purchased during the year the cost of which is less than Rs 5000/-.

D. INTANGIBLES AND AMORTIZATION

Intangible assets are recognized when it is probable that future economic benefits that are attributable to these assets will flow to the company and the cost of the asset can be measured reliably.

Intangible assets (acquired or developed in-house) are measured on initial recognition at cost. Following initial recognition, intangible assets are carried at cost less accumulated depreciation and accumulated impairment losses, if any.

E. IMPAIRMENT OF ASSETS

Management at each balance sheet date assesses using internal sources whether there is an indication that an asset or group of assets or a cash generating unit as the case may be, is impaired. Impairment occurs where the carrying value exceeds the higher of value in use represented by present value of future cash flows expected to arise from the continuing use of the asset and its realizable value. The impairment asset is charged off to statement of profit and loss.

F. INVESTMENTS

Trade investments are those made to enhance the Group''s business interests. Investments are classified as either current or long-term, based on the Management''s intention at the time of purchase.

Long-term investments

Long-term investments are stated at cost. However, provision is made for diminution in the value of the asset, which is other than temporary.

Quoted

The company holds investment in quoted securities. They are classified as long-term as the Management intends to hold the same for a period of more than twelve months. These investments are classified as non-trade.

Unquoted

The company holds investment in unquoted securities of its subsidiaries, joint ventures and associates. These investments are classified as trade.

Current invetsments

Current investments are carried at the lower of cost and fair value.

G. INVENTORIES

a) Raw materials and consumables

The cost of inventories comprise of purchase cost and conversion cost, if any.

b) Work -in-progress

Costs generally include cost of land, construction costs, job work allocated borrowing costs and other costs that are attributable to project and such other costs as are specifically chargeable to the project. Work-in-progress are valued at cost less cost of sales.

c) Finished stock

Finished stock consists of completed real estate projects which are unsold at the end of the financial year. It also includes cost of finished stock purchased from customers for the purpose of sale.

H. BORROWING COST

Borrowing cost that are directly attributable to the acquisition or construction or development of qualifying assets of the company are capitalized until the time all substantial activities necessary to prepare the qualifying assets for the intended use are complete. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use or sale.

Borrowing cost that are attributable to any work-in- progress, qualifying land advances as well as capital work-in-progress are charged to the respective qualifying project. All other borrowing costs, not eligible for inventorisation or capitalization are charged to revenue in the year in which they are incurred.

I. REVENUE RECOGNITION

i) Construction Contracts

In construction contracts, revenue is recognized on percentage of completion method. The revenue is recognized on the basis of the Accounting Standard and as prescribed by Institute of Chartered Accountants of India.

Revenue on sale of land is recognized upon enter in to contract with the customer in the purchase of the said undivided share of land. The revenue also recognized at the time of registration of sale deed or completion of the project whichever is earlier.

ii) Revenue from lease rentals and related income

Lease income is recognized on actual basis as per the Contract.

iii) Interest Income

Revenue is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable on daily basis. Interest is recognized on actual basis of accounting.

iv) Dividend Income

Dividend income is recognized when the right to receive the same is established or the receipt of the same whichever is earlier.

J. FOREIGN EXCHANGE TRANSACTIONS

The foreign exchange transaction recorded, on initial recognition in the reporting currency, by applying to the foreign currency amount, the prevailing exchange rate, as at the date of transaction.

K. TAXES ON INCOME

Tax expense comprises of current tax and deferred tax.

Current tax is measured at the amount expected to be paid to the tax authorities, using the applicable tax rates and tax laws that are enacted or substantially enacted.

Deferred Tax is recognized on timing differences, being the differences between taxable income and the accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets, subject to consideration of prudence, are recognized and carried forward, only to the extent that there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. The tax effect is calculated on the accumulated timing difference at the year end, based on the tax rates and laws enacted or substantially enacted on the balance sheet date. In situations where the company has unabsorbed depreciation or carry forward tax losses, all deferred tax assets are recognized only if there is virtual certainty supported by convincing evidence that sufficient future taxable income will be available against which such deferred tax asset can be realized. They can be realized against future taxable profits.

L. EMPLOYEE BENEFITS

Liability for employee benefits, both short and long term, for present and past services which are due as per the terms of employment and as required by law are recorded in accordance with Accounting Standard (AS) 15 (Revised) "Employee Benefits" issued by the Institute of Chartered Accountants of India.

i) Gratuity

Gratuity is a defined benefit plan. Liability for gratuity in respect of past services are provided for based on the actuarial valuation carried out annually as at the balanced sheet date by an independent actuary using the Projected Unit Credit (PUC) method.

ii) Provident Fund

The company''s contribution to Provident fund is considered as a defined contribution plan. Company''s contribution to provident fund is charged to the statement of profit and loss when the contribution is due.

M. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Provisions are recognized in respect of liabilities which can be measured only by using a substantial degree of estimation when:

a) the company has a present obligation as a result of past event;

b) a probable outflow of resources embodying economic benefits will be required to settle the obligation; and

c) the amount of obligation can be reliably estimated

Re-imbursement expected in respect of expenditure required to settle a provision is recognized only when it is virtually certain that the reimbursement will be received.

Contingent liability is disclosed in the case of:

a) a present obligation arising from a past event, when it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation.

b) a possible obligation, that arises out of past events and the existence of which will be confirmed only by one or more uncertain future events unless the probability of outflow of resources is remote.

Contingents assets are neither recognized nor disclosed. However, when realization of income is virtually certain, related asset is recognized.

N. CASH AND CASH EQUIVALENTS

Cash and cash equivalents comprise cash in hand and at bank and short-term investments with an original maturity of three months or less. Cash flow statement is prepared using indirect method.

O. EARNINGS PER SHARE

Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. The weighted average number of equity shares outstanding during the period are adjusted for events of bonus issue, share split and share warrants conversion.

Diluted earnings per share is calculated by adjusting net profit or loss for the period attributable to equity shareholders and the weighted number of shares outstanding during the period for the effect of all dilutive potential equity shares.

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Sep 30, 2011

1. BASIS OF ACCOUNTING

a) The financial statements have been prepared under the historical cost conversion in accordance with the generally accepted accounting principles and provisions.

b) Accounting policies not specially referred to otherwise are consistently followed throughout the period under audit and in consonance with the generally accepted accounting principles followed by the Institute of Chartered Accountants of India.

2. USE OF ESTIMATES

The preparation of financial statement in conformity with generally accepted accounting policies requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at date of the financial statements and the reported accounts of revenues and expenses for the years presented. Actual results could differ from these estimates.

3. FIXED ASSETS AND DEPRECIATION

a) The fixed assets are stated at cost less accumulated depreciation, cost includes all related expenses incurred up to the date the Assets is put to use.

b) Depreciation on fixed asset is provided on straight line method as per rate and manner prescribes in schedule-XIV of the companies Act 1956. The depreciation has been provided at 100% on the Assets purchased during the year the cost of which is less than Rs 5000/- c) Fixed assets acquired under hire purchase agreement are recorded at their cash values and finance charges thereon related to period are charged to revenue account. The vendors have lien on these Assets.

4. RECOGNITION OF INCOME

The revenue is recognized on the "Percentage of Completion Method" of accounting of projects subject to percentage of confirmation of sales relating to each project.

5. SUNDRY DEBTORS

Represents value of sales less amount received.

6. VALUATION OF INVENTORIES

a) Work in progress : Work-in-progress comprises direct cost of project and valued at cost less cost of sales.

b) Finished stock : Finished stocks consist of unsold stock in trade at the end of financial year.

7. INVESTMENTS

The long term investments are carried at cost. The decline other than temporary, will reduced from carrying amount to recognize decline.

8. EMPLOYEE BENEFIT

a) Provident Fund Plan

The company is yet to remit the employees contribution to provident fund to the tune of Rs.12,30,745/-

b) Defend Gratuity obligation Liability for Gratuity and balance of leave not availed due to employees are provided on the basis of actuarial valuation carried out at the Balance Sheet date by an independent actuary using the Projected Unit Credit (PUC) method.

9. TAXES ON INCOME

Income tax comprises current tax and deferred tax. Current tax is the amount of tax payable as determined in accordance with the provisions of the Income Tax Act 1961. Deferred tax assets and liabilities are recognized for the future tax consequences of timing differences, subject to the consideration of prudence. Deferred tax asset and liabilities are measured using the tax rates applicable to the company at the balance sheet date.

10. DEFERRED TAX

Deferred tax liability is adjusted with the deferred tax asset and the closing balance standing at the end of the year is net off deferred tax asset created during the year. The details are as follows:-

11. CONTINGENT LIABILITIES AND CONTINGENT ASSETS

i) Sales tax liability, if any on works contracts carried out by the company is considered by management as not material but if any liability arises it will be recovered from customers.

ii) During the financial year the company has received a show cause notice from the service tax department in which they have asked for clarification from the company regarding the differences arises in the computation of service tax for the periods as given below. The total amount for which the explanation has been asked for is Rs.13,79,844/-. The details of the two show cause notice are as follows:- Date of Notice Pertaining to period Amount 19/10/2010 April,2009 to Sept.2009 1379844/- The company has fle a writ petition against the above service tax levied by the department and the penalty levied by the service tax department to the tune of Rs 70 lakhs vide court case number-6562 / 2011 before the honorable Madras High Court and the High Court has granted a stay until further orders.

The Company has received notice from Income Tax Department for reopening the assessment for the assessment year 2004-05. The Company has decided to challenge the same in the appropriate forum.

Chennai Metropolitan Development Authority:- The Company has built all properties in accordance to plan except minor deviations which are within permissible limits.

iii) Contingent assets are neither recognized nor disclosed.

12. BORROWING COST

Borrowing costs that are directly attributable to the acquisition or construction of qualifying asset are considered as part of the cost of that asset. Other borrowing costs are recognized as an expense in the year in which they are incurred. The Borrowing cost of the projects are charged to project accounts in the year in which they are incurred.

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Sep 30, 2010

1. BASIS OF ACCOUNTING

a) The financial statements have been prepared under the historical cost conversion in accordance with the generally accepted accounting principles and provisions.

b) Accounting policies not specially referred to otherwise are consistently followed throughout the period under audit and in consonance with the generally accepted accounting principles followed by the Institute of Chartered Accountants of India.

2. FIXED ASSETS AND DEPRECIATION

a) The fixed assets are stated at cost less accumulated depreciation, cost includes all related expenses incurred up to the date the Assets is put to use.

b) Depreciation on fixed asset is provided on straight line method as per rate and manner prescribes in schedule-XIV of the companies Act 1956. The depreciation has been provided at 100% on the Assets purchased during the year the cost of which is less than Rs 5000/- c) Fixed assets acquired under hire purchase agreement are recorded at their cash values and fnance charges thereon related to period are charged to revenue account. The vendors have lien on these Assets.

3. RECOGNITION OF INCOME

The revenue is recognized on the "Percentage of Completion Method" of accounting of projects subject to percentage of confrmation of sales relating to each project.

4. SUNDRY DEBTORS

Represents value of sales less amount received.

5. VALUATION OF INVENTORIES

a) Work in progress

Work-in-progress comprises direct cost of project and valued at cost less cost of sales. Sizeable interest free deposits paid to land owners have been treated as part of project cost.

b) Finished stock

Finished stock consist of unsold stock in trade at the end of fnancial year.

6. INVESTMENTS

The long term investments are carried at cost. The decline other than temporary, will reduced from carrying amount to recognize decline.

7. EMPLOYEE BENEFIT

a) Provident Fund Plan

The company does not fall within the purview of Provident fund Act.

b) Employees State Insurance / Pension Fund scheme. The company does not fall within the purview of Employees State insurance / Pension fund scheme

c) Defned Gratuity obligation Provision for Gratuity liability has been made for the year as per the provisions of Gratuity Act. The Gratuity will be accounted as and when paid.

8. TAXES ON INCOME

The provision is made for taxation on proportionate period basis for the year ended 30.09.2010.

9. CONTINGENT LIABILITIES AND CONTINGENT ASSETS

i) Sales tax liability, if any on works contracts carried out by the company is considered by management as not material but if any liability arises it will be recovered from customers.

ii) Chennai Metropolitan Development Authority:- The Company has built all properties in accordance to plan except minor deviations which are within permissible limits.

iii) Contingent assets are neither recognized nor disclosed.

10) BORROWING COST

As the Company has borrowed funds for the projects, interest has been accordingly charged to respective projects for which borrowing was made.

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Sep 30, 2009

1. BASIS OF ACCOUNTING

a) The financial statements have been prepared under the historical cost convention in accordance with the generally accepted accounting principles and provisions except AS-15 and AS-22.

b) Accounting policies not specially referred to otherwise are consistently followed throughout the period under audit and in consonance with the generally accepted accounting principles prescribed by the Institute of Charted Accountants of India.

2. FIXED ASSETS AND DEPRECIATION

a) The fixed Assets are stated at cost of acquisition less depreciation, cost includes all the related expenses incurred upto the date the Asset is put to use.

b) Depreciation on Fixed Assets is provided on straight line method as per rate and in the manner prescribed in schedule XIV of the Companies Act, 1956.The depreciation has been provided at 100% on the Assets purchased during the year the cost of which is less than Rs.5000/-.

c) Fixed Assets acquired under hire purchase agreement are recorded at their cash values and finance charges thereon related to period are charged to revenue account. The Vendors have lien over these Assets.

3. RECOGNITION OF INCOME

The revenue is recognized on the "Percentage of Completion Method" of accounting of projects subject to percentage of confirmation of sales relating to each project.

4. SUNDRY DEBTORS

Represents value of sales less amount received

5. VALUATION OF INVENTORIES

(a) Work in Progress

Work in progress comprises direct cost of project and valued at cost less cost of sales. Sizeable interest free deposits paid to land owners have been treated as part of project cost.

(b) Finished stock

Finished stock consists of unsold stock in trade at the end of the financial year.

6. INVESTMENTS

The Long Term Investments are carried at cost. The decline other than temporary, will be reduced from carrying amount to recognize decline.

7. EMPLOYEE BENEFITS

a) Provident Fund Plan

The company does not fall with in the purview of Provident Fund Act.

b) Employees State Insurance/ Pension fund scheme:

The company does not fall with in the purview of Employees State Insurance/Pension fund scheme.

c) Defined Gratuity obligation:

Provision for Gratuity liability has not been made for the year as per the provisions of gratuity Act. The gratuity will be accounted as and when paid.

8. TAXES ON INCOME

The provision is made for taxation on proportionate period basis for the year ended 30.09.2009.

9. FRINGE BENEFIT TAX

Fringe benefit tax on all the expenses, as specified in the Income Tax Act, 1961, is recognized in the Profit and Loss Account when the underlying expenses are incurred upto 31.03.2009.

10. CONTINGENT LIABILITIES AND CONTINGENT ASSETS

i) Sales Tax liability, if any on works contract carried out by the company is considered by management as not material but if any liability arises it will be recovered from customers.

ii) Service Tax Liability : Th|e company has stopped collection of service tax on residential flats after issue of circular no. 108/02/2009 dated 29.01.2009 by CBEC. Any liability in respect of service tax if arises, the same will be recovered (from the customers.

iii) Chennai Metropolitan Development Authority : The Company has built all properties in accordance to plan except minor deviations which are within permissible limits.

iv) Contingent assets are neither recognized, nor disclosed.

11. BORROWING COST

As the company has borrowed funds for the projects, interest has been according y charged to respective projects for which borrowing was made