Accounting Policies of Kamanwala Housing Construction Ltd. Company

Mar 31, 2025

Note 1 Significant Accounting Policies

1.1 Basis of Preparation of Financial Statements

1.1.1 Statement of Compliance

The Standalone Financial Statements of the Company have been prepared in accordance
with the accounting principles generally accepted in India including Indian Accounting
Standards ("the Ind AS") prescribed under section 133 of the Companies Act, 2013 ("the
Act") read with the Companies (Indian Accounting Standards) Rules, 2015 as amended
and presentation requirement of Division II of Schedule III of the Act. Accordingly, the
Company has prepared these Financial Statements which comprise the Balance Sheet as
at 31^st March, 2025, the Statement of Profit and Loss, the Cash Flow Statement and the
Statement of Changes in Equity for the year ended as on that date, and accounting
policies and other explanatory information (together hereinafter referred to as
"Standalone Financial Statements" or "financial statements"). The aforesaid financial
statements have been approved by the Board of Directors in its the meeting held on 30^th
May, 2025 and are subject to approval of the shareholders at the ensuing Annual General
Meeting.

1.1.2 Basis of Preparation

The financial statements are prepared on accrual basis of accounting under the historical
cost convention except for certain items in the financial statements that are measured at
fair values at the end of each reporting period, as stated in the accounting policies set
out below. The accounting policies have been applied consistently over all the periods
presented in these financial statements.

Current / Non-Current Classification:

All assets and liabilities have been classified as current or non-current as per the
Company''s normal operating cycle and other criteria set out in the Division II of Schedule
III to the Companies Act, 2013. Based on the nature of business and the time between
the acquisition of assets for processing and their realization in cash and cash equivalents,
the Company has ascertained its operating cycle as 12 months for the purpose of current
& non-current classification of assets and liabilities.

The financial statements are presented in Rupees in Lakhs, the functional currency of the
Company. All amounts have been rounded off to the nearest Lakhs (except per share
data) to two decimals, unless otherwise indicated. Transactions and balances with values
below the rounding off norm adopted by the Company have been reflected as "0" in the
relevant notes to these financial statements.

Items included in the financial statements of the Company are recorded in INR using the
currency of the primary economic environment in which the company operates (the
''functional currency'').

1.2 Use of Estimates

The preparation of financial statements in conformity with Ind AS requires the
Management to make judgments, estimates and assumptions that affect the reported
amount of assets and liabilities, disclosure of contingent liabilities on the date of the
financial statements and the reported amount of revenues and expenses during the
reporting period and the accompanying disclosures. Difference between the actual
results and estimates are recognized in the period in which the results are known /
materialized.

In the assessment of the Company, the most significant effects of use of judgments and /
or estimates on the amounts recognized in the financial statements relate to the
following areas:

• Income taxes,

• Financial instruments,

• Useful lives of property, plant & equipment,

• Valuation of inventories,

• Measurement of recoverable amounts of assets / cash-generating units,

• Assets and obligations relating to employee benefits,

• Evaluation of recoverability of deferred tax assets; and

• Provisions and Contingencies.

1.3 Measurement of Fair Value

The Company measures financial instruments at fair value at each balance sheet date.
Fair value is the price that would be received on selling an asset or paid to transfer a
liability in an orderly transaction between market participants at the measurement date
in the principal or, in its absence, the most advantageous market to which the Company
has access at that date.

While measuring the fair value of an asset or liability, the Company uses valuation
techniques that are appropriate in the circumstances and for which sufficient data are
available to measure the fair value using observable market data as far as possible and
minimizing the use of unobservable inputs. Fair values are categorized into 3 levels as
follows:

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2: Inputs other than quoted prices that are observable for the asset or liability,
either directly (i.e., as prices for similar item) or indirectly (i.e., derived from
prices)

Level 3: Inputs that are not based on observable market data (unobservable inputs)

1.4 Property, Plant and Equipment & Depreciation

a) Tangible Assets

Tangible Assets are stated at cost net of recoverable taxes, trade discounts and rebates,
less accumulated depreciation, and impairment loss, if any. The cost of Tangible Assets
comprises its purchase price, borrowing cost if capitalization criteria are met and any cost
directly attributable to bringing the asset to its working condition for its intended use. All
other expenses on existing fixed Assets including day to day repair and maintenance
expenditure and cost of replacing parts, are charged to statement of profit and loss for
the period during which they are incurred. Gains or Losses arising from the de¬
recognition of fixed assets are measured as the difference between the net disposable
proceeds and the carrying amount of the assets and are recognized in the statement of
profit and loss as and when the assets are de recognized.

b) Intangible Assets

Intangible assets acquired separately are measured on initial recognition at cost.
Following initial recognition, intangible assets are carried at cost less accumulated
impairment losses, if any. Internally generated intangible assets, excluding capitalized
development costs, are capitalized and expenditure is reflected in the statement of profit
and loss in the year in which the expenditure is incurred. Cost comprises the purchase
price and any attributable cost of bringing the asset to its working condition for its
intended use. Gains or losses arising from de-recognition of an intangible asset are
measured as the difference between the net disposal proceeds and the carrying amount
of the asset and are recognized in the statement of profit and loss as and when the asset
is derecognized.

c) Depreciation and Amortization

Depreciation on tangible assets (other than land) is provided to the extent of depreciable
amount on Straight Line Method at the rates and in the manner specified in Schedule II
to the Companies Act, 2013 over its useful life. Depreciation for assets purchased /sold
during the period is calculated pro rata from the date of such addition or up to the date
of such sale / discarding, as the case may be.

d) Impairment of Non-financial assets

At the end of each reporting period, the Company reviews the carrying amounts of its
tangible and intangible assets to determine whether there is any indication that the
assets have suffered an impairment loss. If any such indication exists, the recoverable
amount of the asset is estimated in order to determine the extent of impairment loss (if
any).

If the recoverable amount of asset is estimated to be less than its carrying amount, the
carrying amount asset is reduced to its recoverable amount. An impairment loss is
recognised as an expense in the Statement of Profit and Loss.

When an impairment loss subsequently reverses, the carrying amount of as asset is
increased to the revised estimate of its recoverable amount, so that the increased
carrying amount does not exceed the carrying amount that would have been determined
had no impairment loss been recognised for the asset in prior years. A reversal of an
impairment loss is recognised immediately in the Statement of Profit and Loss.

1.5 Financial Instruments

Financial assets and financial liabilities are recognised when an entity becomes a party to
the contractual provisions of the instrument.

Financial assets and financial liabilities are initially measured at fair value. Transaction
costs that are directly attributable to the acquisition or issue of financial assets and
financial liabilities (other than financial assets and financial liabilities at fair value through
Statement of Profit and Loss (FVTPL)) are added to or deducted from the fair value of
the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction
costs directly attributable to the acquisition of financial assets or financial liabilities at fair
value through profit and loss are recognised immediately in Statement of Profit and Loss.

a) Financial assets

a. Recognition and initial measurement: -

A financial asset is initially recognised at fair value plus, for an item not recorded at FVTPL,
transaction costs that are directly attributable to its acquisition or issue. Purchases and
sales of financial assets are recognised on the trade date, which is the date on which the
Company becomes a party to the contractual provisions of the instrument.

b. Classification of financial assets:

On initial recognition, a financial asset is measured at amortised cost, fair value through
other comprehensive income (FVTOCI) or FVTPL.

A financial asset is measured at amortised cost if it meets both of the following
conditions and is not designated at FVTPL:

- The asset is held within a business model whose objective is to hold assets to collect
contractual cash flows; and

- The contractual terms of the financial asset give rise on specified dates to cash flows

that are solely payments of principal and interest on the principal amount

outstanding.

A debt instrument is classified as FVTOCI only if it meets both of the following conditions
and is not recognised at FVTPL,

- The asset is held within a business model whose objective is achieved by both
collecting contractual cash flows and selling financial assets; and

- The contractual terms of the financial asset give rise on specified dates to cash flows

that are solely payments of principal and interest on the principal amount

outstanding.

Debt instruments included within the FVTOCI category are measured initially as well as at
each reporting date at fair value. Fair value movements are recognized in the Other
Comprehensive Income (OCI). However, the Company recognizes interest income,
impairment losses & reversals and foreign exchange gain or loss in the Statement of Profit
and Loss. On de-recognition of the asset, cumulative gain or loss previously recognised in
OCI is reclassified from the equity to Statement of Profit and Loss. Interest earned whilst
holding FVTOCI debt instrument is reported as interest income using the EIR method.

All equity investments in scope of Ind AS 109 are measured at fair value. Equity
instruments which are held for trading and contingent consideration recognised by an
acquirer in a business combination to which Ind AS 103 applies are classified as at FVTPL.
For all other equity instruments, the Company may make an irrevocable election to
present in other comprehensive income subsequent changes in the fair value. The
Company makes such election on an instrument-by instrument basis. The classification is
made on initial recognition and is irrevocable.

If the Company decides to classify an equity instrument as at FVTOCI, then all fair value
changes on the instrument, excluding dividends, are recognized in the OCI. There is no
recycling of the amounts from OCI to Statement of Profit and Loss, even on sale of
investment. However, the Company may transfer the cumulative gain or loss within
equity.

Equity instruments included within the FVTPL category are measured at fair value with
all changes recognized in the Statement of Profit and Loss.

All other financial assets are classified and measured at FVTPL.

In addition, on initial recognition, the Company may irrevocably designate a financial
asset that otherwise meets the requirements to be measured at amortised cost or at
FVTOCI as at FVTPL if doing so eliminates or significantly reduces an accounting mismatch
that would otherwise arise.

Financial assets at FVTPL are measured at fair value at the end of each reporting year, with
any gains and losses arising on re-measurement recognized in statement of profit or loss.
The net gain or loss recognized in statement of profit or loss incorporates any dividend or
interest earned on the financial asset and is included in the ''other income'' line item.
Dividend on financial assets at FVTPL is recognized when:

- The Company''s right to receive the dividend is established,

- It is probable that the economic benefits associated with the dividends will flow to the
entity,

- The dividend does not represent a recovery of part of cost of the investment and the
amount of dividend can be measured reliably.

c. De-recognition of financial assets

The Company derecognizes a financial asset when the contractual rights to the cash
flows from the asset expire, or when it transfers the financial asset and substantially all
the risks and rewards of ownership of the asset to another party.

d. Impairment

The Company applies the expected credit loss model for recognising impairment loss on
financial assets measured at amortised cost, debt instruments at FVTOCI, lease
receivables, trade receivables, other contractual rights to receive cash or other financial
asset, and financial guarantees not designated as at FVTPL.

Expected credit losses are the weighted average of credit losses with the respective
risks of default occurring as the weights. Credit loss 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 Company expects to receive (i.e., all cash shortfalls), discounted
at the original effective interest rate (or credit-adjusted effective interest rate for
purchased or originated credit-impaired financial assets). The Company estimates cash
flows by considering all contractual terms of the financial instrument (for example,
prepayment, extension, call and similar options) through the expected life of that financial
instrument.

The Company measures 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. If the credit risk on a financial instrument
has not increased significantly since initial recognition, the Company measures the
loss allowance for that financial instrument at an amount equal to 12-month expected
credit losses. 12-month expected credit losses are portion of the life-time expected credit
losses and represent the lifetime cash shortfalls that will result if default occurs within the
12 months after the reporting date and thus, are not cash shortfalls that are predicted
over the next 12 months.

If the Company measured loss allowance for a financial instrument at lifetime expected
credit loss model in the previous year but determines at the end of a reporting year that
the credit risk has not increased significantly since initial recognition due to
improvement in credit quality as compared to the previous year, the Company again
measures the loss allowance based on 12-month expected credit losses.

When making the assessment of whether there has been a significant increase in credit
risk since initial recognition, the Company uses the change in the risk of a default
occurring over the expected life of the financial instrument instead of the change in the
amount of expected credit losses. To make that assessment, the Company compares
the risk of a default occurring on the financial instrument as at the reporting date with
the risk of a default occurring on the financial instrument as at the date of initial
recognition and considers reasonable and supportable information, that is available
without undue cost or effort, that is indicative of significant increases in credit risk since
initial recognition.

For trade receivables or any contractual right to receive cash or another financial asset
that result from transactions that are within the scope of Ind AS 115, the Company
always measures the loss allowance at an amount equal to lifetime expected credit
losses.

Further, for the purpose of measuring lifetime expected credit loss allowance for trade
receivables, the Company has used a practical expedient as permitted under Ind AS 109.
This expected credit loss allowance is computed based on a provision matrix which takes
into account historical credit loss experience and adjusted for forward-looking
information.

The impairment requirements for the recognition and measurement of a loss allowance
are equally applied to debt instruments at FVTOCI except that the loss allowance is
recognised in other comprehensive income and is not reduced from the carrying amount
in the balance sheet.

e. Effective interest method

The effective interest method is a method of calculating the amortised cost of a debt
instrument and of allocating interest income over the relevant year. The effective
interest rate is the rate that exactly discounts estimated future cash receipts (including
all fees and points paid or received that form an integral part of the effective interest rate,
transaction costs and other premiums or discounts) through the expected life of the
debt instrument, or, where appropriate, a shorter year, to the net carrying amount on
initial recognition. Income is recognised on an effective interest basis for debt instruments
other than those financial assets classified as at FVTPL. Interest income is recognized in
statement of profit or loss and is included in the ''Other income'' line item.

b) Financial liabilities and equity instrument

a. Classification as debt or equity

Debt and equity instruments issued by a Company are classified as either
financial liabilities or as equity in accordance with the substance of the
contractual arrangements and the definitions of a financial liability and an equity
instrument.

b. Equity Instrument

An equity instrument is any contract that evidences a residual interest in the assets
of an entity after deducting all of its liabilities. Equity instruments issued by the
Company are recognised at the proceeds received, net of direct issue costs.
Repurchase of the Company''s own equity instruments is recognised and deducted
directly in equity. No gain or loss is recognised in Statement of Profit and Loss on
the purchase, sale, issue or cancellation of the Company''s own equity instruments.

c. Financial Liabilities at FVTPL

Financial liabilities are classified as at FVTPL when the financial liability is either
held for trading or it is designated as at FVTPL.

A financial liability is classified as held for trading if: •

o It has been incurred principally for the purpose of repurchasing it in the near
term; or

o on initial recognition it is part of a portfolio of identified financial instruments
that the Company manages together and has a recent actual pattern of short¬
term profit-taking; or

o it is a derivative that is not designated and effective as a hedging instrument.

A financial liability other than a financial liability held for trading may be
designated as at FVTPL upon initial recognition if:

o such designation eliminates or significantly reduces a measurement or
recognition inconsistency that would otherwise arise,

o the financial liability forms part of a group of financial assets or financial
liabilities or both, which is managed, and its performance is evaluated on a fair
value basis, in accordance with the Company''s documented risk management
or investment strategy, and information about the grouping is provided
internally on that basis; or

o it forms part of a contract containing one or more embedded derivatives,
and Ind AS 109 permits the entire combined contract to be designated as at
FVTPL in accordance with Ind AS 109.

Financial liabilities at FVTPL are stated at fair value, with any gains or losses arising
on re-measurement recognised in Statement of Profit and Loss. The net gain or
loss recognised in Statement of Profit and Loss incorporates any interest paid on
the financial liability and is included in the Statement of Profit and Loss. For
Liabilities designated as FVTPL, fair value gains/ losses attributable to changes in
own credit risk are recognized in OCI.

d. Other financial liabilities:

The Company enters into deferred payment arrangements (acceptances)
whereby overseas lenders such as banks and other financial institutions make
payments to supplier''s banks for import of raw materials and property, plant and
equipment. The banks and financial institutions are subsequently repaid by the
Company at a later date providing working capital benefits. These arrangements
are in the nature of credit extended in normal operating cycle and these
arrangements for raw materials are recognized as Acceptances (under trade
payables) and arrangements for property, plant and equipment are recognised as
other financial liabilities. Interest borne by the company on such arrangements is
accounted as finance cost. Other financial liabilities (including borrowings and
trade and other payables) are subsequently measured at amortised cost using
the effective interest method.

e. Derecognition of financial liabilities:

The Company de-recognises financial liabilities when, and only when, the
Company''s obligations are discharged, cancelled or have expired. An exchange
between an existing borrower and lender of debt instruments with substantially
different terms is accounted for as an extinguishment of the original financial
liability and the recognition of a new financial liability. Similarly, a substantial
modification of the terms of an existing financial liability (whether or not
attributable to the financial difficulty of the debtor) is accounted for as an
extinguishment of the original financial liability and the recognition of a new
financial liability. The difference between the carrying amount of the financial
liability de-recognised and the consideration paid and payable is recognised in the
Statement of Profit and Loss.

1.6 Inventories

Items of inventory are measured as per basis mentioned below:-

Inventories are stated at the lower of cost and net realisable value. Cost of raw
materials includes cost of purchase and other costs incurred in bringing the
inventories to their present location and condition. Cost of finished goods and work
in progress include cost of direct materials and labour and a proportion of
manufacturing overheads based on the normal operating capacity but excluding
borrowing costs. Costs of inventories are determined on cost.

Construction Materials and Consumables

Construction Materials and Consumables are valued on FIFO basis at lower of cost
or net realizable value. The Construction materials and consumables purchased for
construction work issued to construction work in progress are treated as consumed.

Construction Work in Progress

Construction Works I\in Progress are valued at cost. Cost includes cost of land,
development rights, rates and taxes, construction costs, borrowing costs, other
direct expenditure, allocated overheads and other incidental expenses.

Finished Stock of Flats

Finished Stock of Flats is valued at cost or Net Realizable value whichever is lower.
Cost includes cost of finance, which consist of interest on loans which is capitalized
in proportion of its area remained unsold irrespective of its construction stage.

1.7 Revenue Recognition

The Company is following the "Percentage of Completion Method" of accounting for its
construction activities. As per this method, revenue from sale of properties is recognized
in Statement of Profit & Loss in proportion to the actual cost incurred as against the total
estimated cost of projects under execution with the Company on transfer of significant
risk and rewards to the buyer.

Revenue is measured at the fair value of the consideration received or receivable. The
Company recognizes revenue when the amount of revenue can be reliably measured, it
is probable that future economic benefits will flow to the entity and specific criteria
have been met for each of the Company''s activities as described below.

a) Revenue from sale of residential, commercial premises is recognized on issue of
allotment letters / execution of agreements.

b) Interest income is recognized on a time proportion basis taking into account the
amount outstanding and the interest rate applicable.

c) Profit / loss of the shares in partnership firm are recognized on the basis of audited
Financial Statements of the Partnership firm.

d) Other Income is accounted on accrual basis.

For other products, the Company recognizes revenue on the sale of products, net of
discounts, when the products are delivered, risks and rewards of ownership are
transferred to the dealer / customer. Sale of products is presented in financial
statements net of GST and other indirect taxes where applicable, and net of other indirect
taxes. Revenues are recognized when collectability of the resulting receivables is
reasonably assured.

1.8 Income Tax/Deferred Tax

Tax expense comprises of current tax and deferred tax.

a) Current Tax

Current Tax is determined, as the amount of tax payable in respect of taxable income
for the year, on the basis of Income Tax Act, 1961 u/s. 115BAA from AY 2024-25.
Hence MAT credit is not carried forward.

b) Deferred Tax

Deferred tax (both assets and liabilities) is recognised on difference between carrying
amount of assets and liabilities in the balance sheet and the corresponding tax base
used in computation of taxable profit.

Deferred tax assets are recognised for all taxable temporary differences.

Deferred tax assets are recognised for all deductible temporary differences to the
extent that it is probable that taxable profit will be available against those deductible
temporary differences.

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

Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right
exists to set off current tax assets against current tax liabilities and the deferred taxes
relate to the same taxable entity and the same taxation authority.

Valuation of deferred tax is dependent on management''s assessment of future
recoverability of the deferred benefit. Expected recoverability may result from
expected taxable income in the future, planned transactions or planned tax
optimizing measures.

As per Ind AS 12 the criteria for recognising deferred tax assets arising from carry
forward of unused tax losses are the same that of recognising deferred tax assets
arising from deductible temporary differences. However, the existence of unused
tax losses is strong evidence that future taxable profit may not be available. However,
deferred tax asset can be accrued on the basis of management probability of using
the unused tax losses against future taxable profits.

Current tax and Deferred Tax items are recognised in correlation to the
underlying transaction either in the Statement of Profit & Loss, other
comprehensive income or directly in equity.

1.9 EMPLOYEE BENEFITS

Short term employee benefits are recognized as an expense at an undiscounted amount
in the Statement of Profit & Loss for the year/period in which the related services are
rendered.

The Company''s post-employment benefit consists of provident fund, gratuity,
Company''s contributions to Provident Fund administered by Regional Provident Fund
Authorities and ESIC and Labour Welfare Fund, which are defined contribution plans,
are recognized as an expense in the Statement of Profit & Loss for the year/period in
which the services are rendered and the Company has no further obligation beyond
making the contributions.

The Company operates defined benefit plan for Gratuity. The cost of providing such
defined benefit is determined using the projected unit credit method of actuarial
valuation made at the end of the year.

Actuarial gains and losses are recognized in other comprehensive income for gratuity.

Re-measurements, comprising of actuarial gains and losses, the effect of the asset ceiling,
excluding amounts included in net interest on the net defined benefit liability and the
return on plan assets (excluding amounts included in net interest on the net defined
benefit liability), are recognized immediately in the balance sheet with a corresponding
debit or credit to retained earnings through OCI in the period in which they occur. Re¬
measurements are not reclassified to profit or loss in subsequent periods.

Past service costs are recognized in profit or loss on the earlier of:

• The date of the plan amendment or curtailment, and

• The date that the Company recognizes related restructuring costs

Net interest is calculated by applying the discount rate to the net defined benefit liability
or asset. The Company recognizes the following changes in the net defined benefit
obligation as an expense in the statement of profit and loss:

• Service costs comprising current service costs, past-service costs, gains and losses
on curtailments and non-routine settlements; and

• Net interest expense or income

During the Financial Year 2023-24, there was no employee with more than five years of
services in the Company.

1.10 Borrowing cost

Borrowing cost includes interest, amortization of ancillary costs incurred in connection
with the arrangement of borrowings and exchange difference arising from foreign
currency borrowings to the extent they are regarded as an adjustment to the interest
cost.

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 capitalized as part of the cost of the respective asset.

Transaction cost in respect of long-term borrowings is amortized over the tenor of
respective loans using effective interest method, all other borrowing costs are charged
in the statement of profit and loss in the period in which they are incurred.

1.11 Cash and Cash equivalents

Cash and cash equivalents include cash, cash at bank, cheques & drafts on hand. The
Company considers all highly liquid investments with a remaining maturity at the date
of purchase of three months or less and that are readily convertible to known amounts
of cash to be cash equivalents.

1.12 Cash Flows

Cash flows are reported using the indirect method, whereby net profit before tax is
adjusted for the effects of transactions of a non-cash nature, any deferrals, or accruals of
past or future operating cash receipts or payments and item of income or expenses
associated with investing or financing cash flows. The cash flows from operating,
investing, and financing activities are segregated.

1.13 Earnings Per Share

Basic earnings per share is computed by dividing the net profit for the period attributable
to the equity shareholders of the Company by the weighted average number of equity
shares outstanding during the period. The weighted average number of equity shares
outstanding during the period and for all periods presented is adjusted for events, such
as bonus shares, other than the conversion of potential equity shares that have
changed the number of equity shares outstanding, without a corresponding change in
resources.

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

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Mar 31, 2024

Note 1 Significant Accounting Policies

1.1 Basis of Preparation of Financial Statements

1.1.1 Statement of Compliance

The Standalone Financial Statements of the Company have been prepared in accordance
with the accounting principles generally accepted in India including Indian Accounting
Standards ("the Ind AS") prescribed under section 133 of the Companies Act, 2013 ("the
Act") read with the Companies (Indian Accounting Standards) Rules, 2015 as amended
and presentation requirement of Division II of Schedule III of the Act. Accordingly, the
Company has prepared these Financial Statements which comprise the Balance Sheet as
at 31^st March, 2024, the Statement of Profit and Loss, the Cash Flow Statement and the
Statement of Changes in Equity for the year ended as on that date, and accounting
policies and other explanatory information (together hereinafter referred to as
"Standalone Financial Statements" or "financial statements"). The aforesaid financial
statements have been approved by the Board of Directors in its the meeting held on 30^th
May, 2024 and are subject to approval of the shareholders at the ensuing Annual General
Meeting.

1.1.2 Basis of Preparation

The financial statements are prepared on accrual basis of accounting under the historical
cost convention except for certain items in the financial statements that are measured at
fair values at the end of each reporting period, as stated in the accounting policies set
out below. The accounting policies have been applied consistently over all the periods
presented in these financial statements.

Current / Non-Current Classification:

All assets and liabilities have been classified as current or non-current as per the
Company''s normal operating cycle and other criteria set out in the Division II of Schedule
III to the Companies Act, 2013. Based on the nature of business and the time between
the acquisition of assets for processing and their realization in cash and cash equivalents,
the Company has ascertained its operating cycle as 12 months for the purpose of current
& non-current classification of assets and liabilities.

The financial statements are presented in Rupees in Lakhs, the functional currency of the
Company. All amounts have been rounded off to the nearest Lakhs (except per share
data) to two decimals, unless otherwise indicated. Transactions and balances with values
below the rounding off norm adopted by the Company have been reflected as "0" in the
relevant notes to these financial statements.

Items included in the financial statements of the Company are recorded in INR using the
currency of the primary economic environment in which the company operates (the
''functional currency'').

1.2 Use of Estimates

The preparation of financial statements in conformity with Ind AS requires the
Management to make judgments, estimates and assumptions that affect the reported
amount of assets and liabilities, disclosure of contingent liabilities on the date of the
financial statements and the reported amount of revenues and expenses during the
reporting period and the accompanying disclosures. Difference between the actual
results and estimates are recognized in the period in which the results are known /
materialized.

In the assessment of the Company, the most significant effects of use of judgments and /
or estimates on the amounts recognized in the financial statements relate to the
following areas:

• Income taxes,

• Financial instruments,

• Useful lives of property, plant & equipment,

• Valuation of inventories,

• Measurement of recoverable amounts of assets / cash-generating units,

• Assets and obligations relating to employee benefits,

• Evaluation of recoverability of deferred tax assets; and

• Provisions and Contingencies.

1.3 Measurement of Fair Value

The Company measures financial instruments at fair value at each balance sheet date.
Fair value is the price that would be received on selling an asset or paid to transfer a
liability in an orderly transaction between market participants at the measurement date
in the principal or, in its absence, the most advantageous market to which the Company
has access at that date.

While measuring the fair value of an asset or liability, the Company uses valuation
techniques that are appropriate in the circumstances and for which sufficient data are
available to measure the fair value using observable market data as far as possible and
minimizing the use of unobservable inputs. Fair values are categorized into 3 levels as
follows:

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2: Inputs other than quoted prices that are observable for the asset or liability,
either directly (i.e., as prices for similar item) or indirectly (i.e., derived from
prices)

Level 3: Inputs that are not based on observable market data (unobservable inputs)

1.4 Property, Plant and Equipment & Depreciation

a) Tangible Assets

Tangible Assets are stated at cost net of recoverable taxes, trade discounts and rebates,
less accumulated depreciation, and impairment loss, if any. The cost of Tangible Assets
comprises its purchase price, borrowing cost if capitalization criteria are met and any cost
directly attributable to bringing the asset to its working condition for its intended use. All
other expenses on existing fixed Assets including day to day repair and maintenance
expenditure and cost of replacing parts, are charged to statement of profit and loss for
the period during which they are incurred. Gains or Losses arising from the de¬
recognition of fixed assets are measured as the difference between the net disposable
proceeds and the carrying amount of the assets and are recognized in the statement of
profit and loss as and when the assets are de recognized.

b) Intangible Assets

Intangible assets acquired separately are measured on initial recognition at cost.
Following initial recognition, intangible assets are carried at cost less accumulated
impairment losses, if any. Internally generated intangible assets, excluding capitalized
development costs, are capitalized and expenditure is reflected in the statement of profit
and loss in the year in which the expenditure is incurred. Cost comprises the purchase
price and any attributable cost of bringing the asset to its working condition for its
intended use. Gains or losses arising from de-recognition of an intangible asset are
measured as the difference between the net disposal proceeds and the carrying amount
of the asset and are recognized in the statement of profit and loss as and when the asset
is derecognized.

c) Depreciation and Amortization

Depreciation on tangible assets (other than land) is provided to the extent of depreciable
amount on Straight Line Method at the rates and in the manner specified in Schedule II
to the Companies Act, 2013 over its useful life. Depreciation for assets purchased /sold
during the period is calculated pro rata from the date of such addition or up to the date
of such sale / discarding, as the case may be.

d) Impairment of Non-financial assets

At the end of each reporting period, the Company reviews the carrying amounts of its
tangible and intangible assets to determine whether there is any indication that the
assets have suffered an impairment loss. If any such indication exists, the recoverable
amount of the asset is estimated in order to determine the extent of impairment loss (if
any).

If the recoverable amount of asset is estimated to be less than its carrying amount, the
carrying amount asset is reduced to its recoverable amount. An impairment loss is
recognised as an expense in the Statement of Profit and Loss.

When an impairment loss subsequently reverses, the carrying amount of as asset is
increased to the revised estimate of its recoverable amount, so that the increased
carrying amount does not exceed the carrying amount that would have been determined
had no impairment loss been recognised for the asset in prior years. A reversal of an
impairment loss is recognised immediately in the Statement of Profit and Loss.

1.5 Financial Instruments

Financial assets and financial liabilities are recognised when an entity becomes a party to
the contractual provisions of the instrument.

Financial assets and financial liabilities are initially measured at fair value. Transaction
costs that are directly attributable to the acquisition or issue of financial assets and
financial liabilities (other than financial assets and financial liabilities at fair value through
Statement of Profit and Loss (FVTPL)) are added to or deducted from the fair value of
the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction
costs directly attributable to the acquisition of financial assets or financial liabilities at fair
value through profit and loss are recognised immediately in Statement of Profit and Loss.

a) Financial assets

a. Recognition and initial measurement: -

A financial asset is initially recognised at fair value plus, for an item not recorded at FVTPL,
transaction costs that are directly attributable to its acquisition or issue. Purchases and
sales of financial assets are recognised on the trade date, which is the date on which the
Company becomes a party to the contractual provisions of the instrument.

b. Classification of financial assets:

On initial recognition, a financial asset is measured at amortised cost, fair value through
other comprehensive income (FVTOCI) or FVTPL.

A financial asset is measured at amortised cost if it meets both of the following
conditions and is not designated at FVTPL:

- The asset is held within a business model whose objective is to hold assets to collect
contractual cash flows; and

- The contractual terms of the financial asset give rise on specified dates to cash flows

that are solely payments of principal and interest on the principal amount

outstanding.

A debt instrument is classified as FVTOCI only if it meets both of the following conditions
and is not recognised at FVTPL,

- The asset is held within a business model whose objective is achieved by both
collecting contractual cash flows and selling financial assets; and

- The contractual terms of the financial asset give rise on specified dates to cash flows

that are solely payments of principal and interest on the principal amount

outstanding.

Debt instruments included within the FVTOCI category are measured initially as well as at
each reporting date at fair value. Fair value movements are recognized in the Other
Comprehensive Income (OCI). However, the Company recognizes interest income,
impairment losses & reversals and foreign exchange gain or loss in the Statement of Profit
and Loss. On de-recognition of the asset, cumulative gain or loss previously recognised in
OCI is reclassified from the equity to Statement of Profit and Loss. Interest earned whilst
holding FVTOCI debt instrument is reported as interest income using the EIR method.

All equity investments in scope of Ind AS 109 are measured at fair value. Equity
instruments which are held for trading and contingent consideration recognised by an
acquirer in a business combination to which Ind AS 103 applies are classified as at FVTPL.
For all other equity instruments, the Company may make an irrevocable election to
present in other comprehensive income subsequent changes in the fair value. The
Company makes such election on an instrument-by instrument basis. The classification is
made on initial recognition and is irrevocable.

If the Company decides to classify an equity instrument as at FVTOCI, then all fair value
changes on the instrument, excluding dividends, are recognized in the OCI. There is no
recycling of the amounts from OCI to Statement of Profit and Loss, even on sale of
investment. However, the Company may transfer the cumulative gain or loss within
equity.

Equity instruments included within the FVTPL category are measured at fair value with
all changes recognized in the Statement of Profit and Loss.

All other financial assets are classified and measured at FVTPL.

In addition, on initial recognition, the Company may irrevocably designate a financial
asset that otherwise meets the requirements to be measured at amortised cost or at
FVTOCI as at FVTPL if doing so eliminates or significantly reduces an accounting mismatch
that would otherwise arise.

Financial assets at FVTPL are measured at fair value at the end of each reporting year, with
any gains and losses arising on re-measurement recognized in statement of profit or loss.
The net gain or loss recognized in statement of profit or loss incorporates any dividend or
interest earned on the financial asset and is included in the ''other income'' line item.
Dividend on financial assets at FVTPL is recognized when:

- The Company''s right to receive the dividend is established,

- It is probable that the economic benefits associated with the dividends will flow to the
entity,

- The dividend does not represent a recovery of part of cost of the investment and the
amount of dividend can be measured reliably.

c. De-recognition of financial assets

The Company derecognizes a financial asset when the contractual rights to the cash
flows from the asset expire, or when it transfers the financial asset and substantially all
the risks and rewards of ownership of the asset to another party.

d. Impairment

The Company applies the expected credit loss model for recognising impairment loss on
financial assets measured at amortised cost, debt instruments at FVTOCI, lease
receivables, trade receivables, other contractual rights to receive cash or other financial
asset, and financial guarantees not designated as at FVTPL.

Expected credit losses are the weighted average of credit losses with the respective
risks of default occurring as the weights. Credit loss 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 Company expects to receive (i.e., all cash shortfalls), discounted
at the original effective interest rate (or credit-adjusted effective interest rate for
purchased or originated credit-impaired financial assets). The Company estimates cash
flows by considering all contractual terms of the financial instrument (for example,
prepayment, extension, call and similar options) through the expected life of that financial
instrument.

The Company measures 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. If the credit risk on a financial instrument
has not increased significantly since initial recognition, the Company measures the
loss allowance for that financial instrument at an amount equal to 12-month expected
credit losses. 12-month expected credit losses are portion of the life-time expected credit
losses and represent the lifetime cash shortfalls that will result if default occurs within the
12 months after the reporting date and thus, are not cash shortfalls that are predicted
over the next 12 months.

If the Company measured loss allowance for a financial instrument at lifetime expected
credit loss model in the previous year but determines at the end of a reporting year that
the credit risk has not increased significantly since initial recognition due to
improvement in credit quality as compared to the previous year, the Company again
measures the loss allowance based on 12-month expected credit losses.

When making the assessment of whether there has been a significant increase in credit
risk since initial recognition, the Company uses the change in the risk of a default
occurring over the expected life of the financial instrument instead of the change in the
amount of expected credit losses. To make that assessment, the Company compares
the risk of a default occurring on the financial instrument as at the reporting date with
the risk of a default occurring on the financial instrument as at the date of initial
recognition and considers reasonable and supportable information, that is available
without undue cost or effort, that is indicative of significant increases in credit risk since
initial recognition.

For trade receivables or any contractual right to receive cash or another financial asset
that result from transactions that are within the scope of Ind AS 115, the Company
always measures the loss allowance at an amount equal to lifetime expected credit
losses.

Further, for the purpose of measuring lifetime expected credit loss allowance for trade
receivables, the Company has used a practical expedient as permitted under Ind AS 109.
This expected credit loss allowance is computed based on a provision matrix which takes
into account historical credit loss experience and adjusted for forward-looking
information.

The impairment requirements for the recognition and measurement of a loss allowance
are equally applied to debt instruments at FVTOCI except that the loss allowance is
recognised in other comprehensive income and is not reduced from the carrying amount
in the balance sheet.

e. Effective interest method

The effective interest method is a method of calculating the amortised cost of a debt
instrument and of allocating interest income over the relevant year. The effective
interest rate is the rate that exactly discounts estimated future cash receipts (including
all fees and points paid or received that form an integral part of the effective interest rate,
transaction costs and other premiums or discounts) through the expected life of the
debt instrument, or, where appropriate, a shorter year, to the net carrying amount on
initial recognition. Income is recognised on an effective interest basis for debt instruments
other than those financial assets classified as at FVTPL. Interest income is recognized in
statement of profit or loss and is included in the ''Other income'' line item.

b) Financial liabilities and equity instrument

a. Classification as debt or equity

Debt and equity instruments issued by a Company are classified as either
financial liabilities or as equity in accordance with the substance of the
contractual arrangements and the definitions of a financial liability and an equity
instrument.

b. Equity Instrument

An equity instrument is any contract that evidences a residual interest in the assets
of an entity after deducting all of its liabilities. Equity instruments issued by the
Company are recognised at the proceeds received, net of direct issue costs.
Repurchase of the Company''s own equity instruments is recognised and deducted
directly in equity. No gain or loss is recognised in Statement of Profit and Loss on
the purchase, sale, issue or cancellation of the Company''s own equity instruments.

c. Financial Liabilities at FVTPL

Financial liabilities are classified as at FVTPL when the financial liability is either
held for trading or it is designated as at FVTPL.

A financial liability is classified as held for trading if: •

o It has been incurred principally for the purpose of repurchasing it in the near
term; or

o on initial recognition it is part of a portfolio of identified financial instruments
that the Company manages together and has a recent actual pattern of short¬
term profit-taking; or

o it is a derivative that is not designated and effective as a hedging instrument.

A financial liability other than a financial liability held for trading may be
designated as at FVTPL upon initial recognition if:

o such designation eliminates or significantly reduces a measurement or
recognition inconsistency that would otherwise arise,

o the financial liability forms part of a group of financial assets or financial
liabilities or both, which is managed, and its performance is evaluated on a fair
value basis, in accordance with the Company''s documented risk management
or investment strategy, and information about the grouping is provided
internally on that basis; or

o it forms part of a contract containing one or more embedded derivatives,
and Ind AS 109 permits the entire combined contract to be designated as at
FVTPL in accordance with Ind AS 109.

Financial liabilities at FVTPL are stated at fair value, with any gains or losses arising
on re-measurement recognised in Statement of Profit and Loss. The net gain or
loss recognised in Statement of Profit and Loss incorporates any interest paid on
the financial liability and is included in the Statement of Profit and Loss. For
Liabilities designated as FVTPL, fair value gains/ losses attributable to changes in
own credit risk are recognized in OCI.

d. Other financial liabilities:

The Company enters into deferred payment arrangements (acceptances)
whereby overseas lenders such as banks and other financial institutions make
payments to supplier''s banks for import of raw materials and property, plant and
equipment. The banks and financial institutions are subsequently repaid by the
Company at a later date providing working capital benefits. These arrangements
are in the nature of credit extended in normal operating cycle and these
arrangements for raw materials are recognized as Acceptances (under trade
payables) and arrangements for property, plant and equipment are recognised as
other financial liabilities. Interest borne by the company on such arrangements is
accounted as finance cost. Other financial liabilities (including borrowings and
trade and other payables) are subsequently measured at amortised cost using
the effective interest method.

e. Derecognition of financial liabilities:

The Company de-recognises financial liabilities when, and only when, the
Company''s obligations are discharged, cancelled or have expired. An exchange
between an existing borrower and lender of debt instruments with substantially
different terms is accounted for as an extinguishment of the original financial
liability and the recognition of a new financial liability. Similarly, a substantial
modification of the terms of an existing financial liability (whether or not
attributable to the financial difficulty of the debtor) is accounted for as an
extinguishment of the original financial liability and the recognition of a new
financial liability. The difference between the carrying amount of the financial
liability de-recognised and the consideration paid and payable is recognised in the
Statement of Profit and Loss.

1.6 Inventories

Items of inventory are measured as per basis mentioned below:-

Inventories are stated at the lower of cost and net realisable value. Cost of raw
materials includes cost of purchase and other costs incurred in bringing the
inventories to their present location and condition. Cost of finished goods and work
in progress include cost of direct materials and labour and a proportion of
manufacturing overheads based on the normal operating capacity but excluding
borrowing costs. Costs of inventories are determined on cost.

Construction Materials and Consumables

Construction Materials and Consumables are valued on FIFO basis at lower of cost
or net realizable value. The Construction materials and consumables purchased for
construction work issued to construction work in progress are treated as consumed.

Construction Work in Progress

Construction Works I\in Progress are valued at cost. Cost includes cost of land,
development rights, rates and taxes, construction costs, borrowing costs, other
direct expenditure, allocated overheads and other incidental expenses.

Finished Stock of Flats

Finished Stock of Flats is valued at cost or Net Realizable value whichever is lower.
Cost includes cost of finance, which consist of interest on loans which is capitalized
in proportion of its area remained unsold irrespective of its construction stage.

1.7 Revenue Recognition

The Company is following the "Percentage of Completion Method" of accounting for its
construction activities. As per this method, revenue from sale of properties is recognized
in Statement of Profit & Loss in proportion to the actual cost incurred as against the total
estimated cost of projects under execution with the Company on transfer of significant
risk and rewards to the buyer.

Revenue is measured at the fair value of the consideration received or receivable. The
Company recognizes revenue when the amount of revenue can be reliably measured, it
is probable that future economic benefits will flow to the entity and specific criteria
have been met for each of the Company''s activities as described below.

a) Revenue from sale of residential, commercial premises is recognized on issue of
allotment letters / execution of agreements.

b) Interest income is recognized on a time proportion basis taking into account the
amount outstanding and the interest rate applicable.

c) Profit / loss of the shares in partnership firm are recognized on the basis of audited
Financial Statements of the Partnership firm.

d) Other Income is accounted on accrual basis.

For other products, the Company recognizes revenue on the sale of products, net of
discounts, when the products are delivered, risks and rewards of ownership are
transferred to the dealer / customer. Sale of products is presented in financial
statements net of GST and other indirect taxes where applicable, and net of other indirect
taxes. Revenues are recognized when collectability of the resulting receivables is
reasonably assured.

1.8 Income Tax/Deferred Tax

Tax expense comprises of current tax and deferred tax.

a) Current Tax

Current Tax is determined, as the amount of tax payable in respect of taxable income
for the year, on the basis of Income Tax Act, 1961 u/s. 115BAA from AY 2024-25.
Hence MAT credit is not carried forward.

b) Deferred Tax

Deferred tax (both assets and liabilities) is recognised on difference between carrying
amount of assets and liabilities in the balance sheet and the corresponding tax base
used in computation of taxable profit.

Deferred tax assets are recognised for all taxable temporary differences.

Deferred tax assets are recognised for all deductible temporary differences to the
extent that it is probable that taxable profit will be available against those deductible
temporary differences.

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

Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right
exists to set off current tax assets against current tax liabilities and the deferred taxes
relate to the same taxable entity and the same taxation authority.

Valuation of deferred tax is dependent on management''s assessment of future
recoverability of the deferred benefit. Expected recoverability may result from
expected taxable income in the future, planned transactions or planned tax
optimizing measures.

As per Ind AS 12 the criteria for recognising deferred tax assets arising from carry
forward of unused tax losses are the same that of recognising deferred tax assets
arising from deductible temporary differences. However, the existence of unused
tax losses is strong evidence that future taxable profit may not be available. However,
deferred tax asset can be accrued on the basis of management probability of using
the unused tax losses against future taxable profits.

Current tax and Deferred Tax items are recognised in correlation to the
underlying transaction either in the Statement of Profit & Loss, other
comprehensive income or directly in equity.

1.9 EMPLOYEE BENEFITS

Short term employee benefits are recognized as an expense at an undiscounted amount
in the Statement of Profit & Loss for the year/period in which the related services are
rendered.

The Company''s post-employment benefit consists of provident fund, gratuity,
Company''s contributions to Provident Fund administered by Regional Provident Fund
Authorities and ESIC and Labour Welfare Fund, which are defined contribution plans,
are recognized as an expense in the Statement of Profit & Loss for the year/period in
which the services are rendered and the Company has no further obligation beyond
making the contributions.

The Company operates defined benefit plan for Gratuity. The cost of providing such
defined benefit is determined using the projected unit credit method of actuarial
valuation made at the end of the year.

Actuarial gains and losses are recognized in other comprehensive income for gratuity.

Re-measurements, comprising of actuarial gains and losses, the effect of the asset ceiling,
excluding amounts included in net interest on the net defined benefit liability and the
return on plan assets (excluding amounts included in net interest on the net defined
benefit liability), are recognized immediately in the balance sheet with a corresponding
debit or credit to retained earnings through OCI in the period in which they occur. Re¬
measurements are not reclassified to profit or loss in subsequent periods.

Past service costs are recognized in profit or loss on the earlier of:

• The date of the plan amendment or curtailment, and

• The date that the Company recognizes related restructuring costs

Net interest is calculated by applying the discount rate to the net defined benefit liability
or asset. The Company recognizes the following changes in the net defined benefit
obligation as an expense in the statement of profit and loss:

• Service costs comprising current service costs, past-service costs, gains and losses
on curtailments and non-routine settlements; and

• Net interest expense or income

During the Financial Year 2023-24, there was no employee with more than five years of
services in the Company.

1.10 Borrowing cost

Borrowing cost includes interest, amortization of ancillary costs incurred in connection
with the arrangement of borrowings and exchange difference arising from foreign
currency borrowings to the extent they are regarded as an adjustment to the interest
cost.

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 capitalized as part of the cost of the respective asset.

Transaction cost in respect of long-term borrowings is amortized over the tenor of
respective loans using effective interest method, all other borrowing costs are charged
in the statement of profit and loss in the period in which they are incurred.

1.11 Cash and Cash equivalents

Cash and cash equivalents include cash, cash at bank, cheques & drafts on hand. The
Company considers all highly liquid investments with a remaining maturity at the date
of purchase of three months or less and that are readily convertible to known amounts
of cash to be cash equivalents.

1.12 Cash Flows

Cash flows are reported using the indirect method, whereby net profit before tax is
adjusted for the effects of transactions of a non-cash nature, any deferrals, or accruals of
past or future operating cash receipts or payments and item of income or expenses
associated with investing or financing cash flows. The cash flows from operating,
investing, and financing activities are segregated.

1.13 Earnings Per Share

Basic earnings per share is computed by dividing the net profit for the period attributable
to the equity shareholders of the Company by the weighted average number of equity
shares outstanding during the period. The weighted average number of equity shares
outstanding during the period and for all periods presented is adjusted for events, such
as bonus shares, other than the conversion of potential equity shares that have
changed the number of equity shares outstanding, without a corresponding change in
resources.

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

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Mar 31, 2014

1.1. Basis of Preparation of Financial Statements

The Financial Statements have been prepared to comply in respects with the notified accounting standards by Companies Accounting Standards Rules, 2006 and the relevant provisions of the Companies Act, 1956. The Financial Statements have been prepared under the historical cost convention on an accrual basis in accordance with accounting principles generally accepted in India.

Presentation of Financial Statements as per the revised Schedule VI notified under the Companies Act,1956, has become applicable to the Company, from previous year.

1.2. Fixed Assets (Own)

Fixed Assets are stated at cost of acquisition including attributable interest & financial costs till date of acquisitions / installation of the assets and improvement thereon less accumulated depreciation/amortization, impairment losses, if any.

1.3. Depreciation and Amortization

Depreciation on Fixed Assets has been provided on Straight Line Method at the current effective rates prescribed under Schedule XIV to the Companies Act, 1956. Depreciation in respect of assets acquired during the year has been provided on pro-rata basis.

1.4. Investments

Investments which are readily realizable and intended to be held for not more than one year from the date on which such investment are made, are classified as current investments. All other investments are classified as long term investments.

Current Investments are carried in the Financial Statements at lower of cost or fair value determined on an individual investment basis. Long Term Investments are stated at cost of acquisition. Provision for diminution in the value of Long Term investments is made only if, such decline in the opinion of management is other than temporary.

1.5. Inventory

Items of inventory are measured as per basis mentioned below:- Raw Materials are valued at cost on FIFO basis.

Work In Progress is valued at cost including cost of finance, which consist of interest on loan from bank which is capitalized in proportion of its area remained unsold irrespective of its construction stage.

1.6. Gratuity/Retirement Benefits

Gratuity/Retirement Benefits are classified as Long Term Provisions as it will be payable after 12 months from the reporting date.

Gratuity has been determined and provided for all employees who have completed 5 years of continuous service. The total accrued liability of Gratuity will be deposited in Gratuity Fund with LIC of India in 2 years. The Company has formed the Trust for Group Gratuity Scheme with Life Insurance Corporation of India.

1.7. Revenue Recognition

Revenue from sale of flat is recognized on issue of letter of allotment/execution of agreement (whichever is earlier) as the project is near to completion.

1.8. Service Tax and Value Added Tax

Service Tax is paid on the services provided or to be provided on receipts basis. Value Added Tax is paid on the basis of Agreement registered during the year for booking made after 01.04.2010 inclusive of current year.

1.9. Provision for Current and Deferred Tax

1.9.1 Provision for Current Tax is made and retained in the accounts on the basis of estimated tax liability as per the applicable provisions of the Income Tax Act, 1961 and considering assessment orders and decisions of appellate authorities in the Company''s case.

1.9.2 Provisions for Current Tax is made after taking into considerations benefits admissible under the provisions of Income Tax Act, 1961. Deferred Tax resulting from "timing difference" between taxable and accounting income is accounted for using the tax rates and laws that are enacted or substantively enacted as on the Balance Sheet date.

1.10. Provisions, Contingent Liabilities and Contingent Assets

The Company recognizes a provision when there is present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for contingent liability is made when there is possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Contingent assets are neither recognized nor disclosed in the financial statements.

1.11. other Information and Explanations

1.11.1. Balances in various accounts included in Sundry Debtors, Sundry Creditors, Advances Recoverable, Deposits/ Advances from Customers and Joint Venture Accounts are subject to confirmation.

1.11.2. In the opinion of the Board, the aggregate value of current assets (including stock) and loans and advances on realization in the ordinary course of business will not be less than the amount at which these are stated in the Balance Sheet.

1.11.3. All lands/development rights/premises are purchased on agreement basis and conveyance in respect of the same will be executed directly in favor of Co-operative Societies whenever they are formed.

1.11.4. The Company has no information as to whether any of its suppliers constitute small-scale undertakings and therefore, the amount due to such suppliers has not been separately identified.

1.11.5. During the current year assessment of Income Tax for the A.Y. 2011-12 was completed and Order was passed by the Additional Commissoner of Income tax, wherein demand of Income Tax raised by the authority of Rs. 3.78 Crores. However, Company has filed an appeal with the Commissioner of Income Tax (Appeal).

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Mar 31, 2013

1.1. Basis of Preparation of Financial Statements

The fnancial statements have been prepared to comply in respects with the notifed Accounting Standards by Companies Accounting Standards Rules, 2006 and the relevant provisions of the Companies Act, 1956. The fnancial statements have been prepared under the historical cost convention on an accrual basis in accordance with accounting principles generally accepted in India.

Presentation of fnancial statements as per the revised Schedule VI notifed under the Companies Act, 1956, has become applicable to the Company, from previous year.

1.2. Fixed Assets (own)

Fixed Assets are stated at cost of acquisition including attributable interest & fnancial costs till date of acquisitions/ installation of the assets and improvement thereon less accumulated depreciation/amortization, impairment losses, if any.

1.3. Depreciation and Amortization

Depreciation on Fixed Assets has been provided on Straight Line Method at the current effective rates prescribed under Schedule XIV to the Companies Act, 1956. Depreciation in respect of asset acquired during the year has been provided on pro-rata basis.

1.4. Investments

Investments which are readily realizable and intended to be held for not more than one year from the date on which such investments are made, are classifed as current investments. All other investments are classifes as long term investments.

Current Investments are carried in the fnancial statements at lower of cost or fair value determined on an individual investment basis. Long Term Investments are stated at cost of acquisition. Provision for diminution in the value of Long Term Investments is made only if, such decline in the opinion of management is other than temporary.

1.5. Inventory

Items of inventory are measured as per basis mentioned below:-

Raw Materials are valued at cost on FIFO basis.

Work In Progress is valued at cost including cost of fnance, which consist of interest on loan from bank which is capitalized in proportion of its area remain unsold irrespective of its construction stage.

Finished Goods are valued at cost including borrowing cost.

1.6. Gratuity/Retirement Benefts

Gratuity/Retirement Benefts is classifed as Long Term Provisions as it will be payable after 12 months from the reporting date.

Gratuity has been determined and provided for all employees who have completed 5 years of continuous service. The total accrued liability of Gratuity will be deposited in Gratuity Fund with LIC of India in 5 years. The Company has formed the Trust for Group Gratuity Scheme with Life Insurance Corporation of India.

1.7. Revenue Recognition

Revenue from sale of fat is recognized on issue of letter of allotment/execution of agreement (whichever is earlier) and also sale completely recorded on booking of previous years as the project is near to completion.

1.8. Service Tax and Value Added Tax

Service tax is paid on the services provided or to be provided on receipts basis. Value Added Tax is paid on the basis of Agreement registered during the year or booking made after 01.04.2010 inclusive of current year.

1.9. Provision for Current and Deferred Tax

1.9.1 Provision for Current Tax is made and retained in the accounts on the basis of estimated tax liability as per the applicable provisions of the Income Tax Act, 1961 and considering assessment orders and decisions of appellate authorities in Company''s case.

1.9.2 Provisions for Current Tax is made after taking into considerations benefts admissible under the provisions of Income Tax Act, 1961. Deferred Tax resulting from "timing difference" between taxable and accounting income is accounted for using the tax rates and laws that are enacted or substantively enacted as on the Balance Sheet date.

1.9.3 Deferred Tax Liability has been reversed during the year and added in Statement of Proft and Loss as wrongly calculated in previous year.

1.10. Provisions, Contingent Liabilities and Contingent Assets

The Company recognizes a provision when there is present obligation as a result of a past event that probably requires an outfow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for contingent liability is made when there is possible obligation or a present obligation that may, but probably will not, require an outfow of resources. Contingent assets are neither recognized nor disclosed in the fnancial statements.

1.11. other Information and Explanation

1.11.1. Balances in various accounts included in Sundry Debtors, Sundry Creditors, Advances Recoverable, Deposits/ Advances from Customers and Joint Venture Accounts are subject to confrmation.

1.11.2. In the opinion of the Board, the aggregate value of current assets (including stock) and loans and advances on realization in the ordinary course of business will not be less than the amount at which these are stated in the Balance Sheet.

1.11.3. All lands/development rights/premises are purchased on agreement basis and conveyance in respect of the same will be executed directly in favor of Co-operative Societies whenever they are formed.

1.11.4. The Company has no information as to whether any of its suppliers constitute small-scale undertakings and therefore, the amount due to such suppliers has not been separately identifed.

1.11.5. The Company has taken the advances from various parties against the ongoing projects at BKC, Malad and Turbhe. Basically to promote the sale of the Company they can get minimum compensation or they can also apply the option to buy the Property at prevailing market rate. Meanwhile the Company is regularly paying commitment charges to the parties on amount paid by them.

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Mar 31, 2012

1.1. Basis of Preparation of Financial Statements

The financial statements have been prepared to comply in respects with the notified Accounting Standards by Companies Accounting Standards Rules, 2006 and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared under the historical cost convention on an accrual basis in accordance with accounting principles generally accepted in India.

During the year ended March 31, 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 recognition and measurement principles followed for preparation of financial statements. The Company has also classified previous yearRss figures in accordance with the requirements applicable in the current year.

1.2. Fixed Assets (Own)

Fixed Assets are stated at cost of acquisition including attributable interest & financial costs till date of acquisitions / installation of the assets and improvement thereon less accumulated depreciation/amortization, impairment losses, if any.

1.3. Depreciation and Amortization

Depreciation on Fixed Assets has been provided on Straight Line Method at the current effective rates prescribed under Schedule XIV to the Companies Act, 1956. Depreciation in respect of asset acquired during the year has been provided on pro-rata basis.

1.4. Investments

I nvestments which are readily realizable and intended to be held for not more than one year from the date on which such investments are made, are classified as current investments. All other investments are classified as long term investments.

Current Investments are carried in the financial statements at lower of cost or fair value determined on an individual investment basis. Long Term Investments are stated at cost of acquisition. Provision for diminution in the value of Long Term investments is made only if, such decline in the opinion of management is other than temporary.

1.5. Inventory

Items of inventory are measured as per basis mentioned below:- Raw Materials are valued at cost on First-In-First-Out basis.

Work In Progress is valued at cost including cost of finance, which consist of interest on loans from Banks capitalized in proportion of its area remain unsold irrespective of its construction stage.

Finished Goods are valued at cost including borrowing cost.

1.6. Gratuity/Retirement Benefits

Gratuity/Retirement Benefits are classified as Long Term Provisions as it will be payable after 12 months from the reporting date.

Gratuity has been determined and provided for all employees who have completed 5 years of continuous service. The total accrued liability of Gratuity will be deposited in Gratuity Fund with LIC of India in 5 years. The Company has already formed the Trust for Group Gratuity Scheme with Life Insurance Corporation of India.

1.7. Revenue Recognition

Revenue from sale of flats is recognized on issue of letter of allotment/execution of agreement (whichever is earlier), in proportion to completion of construction of flats and/or value of letter of demand issued during the year.

1.8. Service Tax and Value Added Tax

Service Tax has been paid on the services provided or to be provided on receipts basis.

1.9. Provision for Current and Deferred Tax

1.9.1 Provision for Current Tax is made and retained in the accounts on the basis of estimated tax liability as per the applicable provisions of the Income Tax Act, 1961 and considering assessment orders and decisions of appellate authorities in CompanyRss case

1.9.2 Provisions for Current Tax is made after taking into considerations benefits admissible under the provisions of Income Tax Act, 1961. Deferred Tax resulting from "timing difference" between taxable and accounting income is accounted for using the tax rates and laws that are enacted or substantively enacted as on the Balance Sheet date.

1.10. Provisions, Contingent Liabilities and Contingent Assets

The Company recognizes a provision when there is present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for contingent liability is made when there is possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Contingent Assets are neither recognized nor disclosed in the financial statements.

1.11. other Information and Explanation

1.11.1. Balances in various accounts included in Sundry Debtors, Sundry Creditors, Advances Recoverable, Deposits/ Advances from Customers and Joint Venture Accounts are subject to confirmation.

1.11.2. I n the opinion of the Board, the aggregate value of current assets (including stock) and loans and advances on realization in the ordinary course of business will not be less than the amount at which these are stated in the Balance Sheet.

1.11.3. All lands/development rights/premises are purchased on agreement basis and conveyance in respect of the same will be executed directly in favor of Co-operative Societies whenever they are formed.

1.11.4. The Company has no information as to whether any of its suppliers constitute small-scale undertakings and therefore, the amount due to such suppliers has not been separately identified.

1.11.5. The Company has taken the advances from various parties against the ongoing projects at BKC, Malad and Turbhe. Basically to promote the sale of the Company they can get minimum compensation or they can also apply the option to buy the property at prevailing market rate. Meanwhile the Company is regularly paying commitment charges to the parties on amount paid by them.

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Mar 31, 2011

(a) basis of Preparation:

the financial statements have been prepared to comply in respects with the notified accounting Standards by Companies accounting Standards rules, 2006 and the relevant provisions of the Companies act, 1956 (‘the act’). the financial statements have been prepared under the historical cost convention on an accrual basis in accordance with accounting principles generally accepted in India.

(b) Sales:

Sales of fats is recognized on issue of letter of allotment / execution of agreement (whichever is earlier), in proportion to completion of construction of fat and/or value of letter of demand issued during the year. however, Sales of BKC Project is recognized in the year of allotment of letter issued irrespective of the construction stage.

(c) Fixed assets:

Fixed assets are stated at cost less accumulated depreciation, impairment losses if any.

(d) Depreciation:

Depreciation on fixed assets has been provided on Straight line method at the current effective rates prescribed under Schedule xiv to the Companies act, 1956. depreciation in respect of asset acquired during the year has been provided on pro-rata basis.

(e) Investments:

Long term investments are stated at cost of acquisition. Provision for diminution in the value of long term investments is made only if, such decline in the opinion of management is other than temporary.

(f) Gratuity/retirement Benefits:

Gratuity has been determined and provided for all employees who have completed 5 years of continuous service.

(g) inventories :

Raw materials are valued at cost on FIFO basis.

Work in Progress is valued at cost including cost of finance, which consist of interest on loan from banks which is capitalized in proportion of its area remain unsold irrespective of its construction stage.

Finished Goods is valued at cost including borrowing cost.

(h) Contingent liabilities:

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

(i) Taxation:

(i) Provision for current tax is made and retained in the accounts on the basis of estimated tax liability as per the applicable provisions of the income tax act, 1961 and considering assessment orders and decisions of appellate authorities in Company’s case.

(ii) deferred tax for timing differences between tax profits and book profits is accounted by using the tax rates and laws that have been enacted or substantially enacted as of the balance Sheet date. deferred tax asset in respect of unabsorbed losses are recognized to the extent there is reasonable certainty that these assets can be realized in future.

(j) accounting Policies not specifically referred to above are consistent with earlier years and in consonance with generally accepted accounting principles.

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Mar 31, 2010

(a) System of Accounting:

The Company adopts the accrual basis in the preparation of the accounts.

(b) Sales:

Sales of Flats are accounted for at value in the year in which the agreements were entered into respective of the stage of completion of the projects Savoy Residency at Santacruz (West) & Manavsthal at Malad (West).

(c) Fixed Assets:

Fixed Assets are stated at cost.

(d) Depreciation:

Depreciation on Fixed Assets has been provided on Straight Line Method at the current effective rates prescribed under Schedule XIV to the Companies Act, 1956.

(e) Investments:

Long Term Investments are stated at cost of acquisition.

(f) Gratuity/Retirement Benefits:

Provision for Gratuity has been made and determined the liability for gratuity of eligible employees upto March, 2010.

(g) Stock:

Inventories are valued at cost.

(h) Contingent Liabilities:

These are disclosed by way of Notes to the Accounts.