Accounting Policies of Maruti Infrastructure Ltd. Company

Mar 31, 2024

CORPORATE INFORMATION

Maruti Infrastructure Limited ("the company") is a public limited company domiciled and incorporated in India and its shares are publicly traded on the Bombay Stock Exchange ("BSE"), India. The registered office of the company is situated at 802, Surmount, Opp Reliance Mart, S G Highway, Ahmedabad 380015. The principal business activity of the company is Real Estate Development & Construction activities. The company has its presence in the states of Gujarat.

The financial statements were authorised for issue in accordance with a resolution passed by the Board of Directors on 30^th May , 2024.

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES1.1 Basis of preparation of financial statements:

The financial statements (Separate financial statements) have been prepared on accrual basis in accordance with Indian Accounting Standards (Ind AS) notified under the Companies (Indian Accounting Standards) Rules, 2015 and the provisions of the Companies Act, 2013.

For all periods up to and including the year ended March 31, 2024, the company prepared its financial statements in accordance with accounting standards notified under section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (previous GAAP).

The financial statements have been prepared on a historical cost basis, except for certain financial assets and liabilities which have been measured at fair value (refer accounting policy regarding financial instruments). The financial statements are presented in Indian Rupees, except as stated otherwise.

1.2 Estimates and Judgements

The preparation of the financial statements in conformity with Ind AS requires management to make estimates, judgments and assumptions. These estimates, judgments and assumptions effect the application of accounting policies and the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the period. Application of accounting policies that require critical accounting estimates involving complex and subjective judgments and the use of assumptions in these financial statements have been disclosed in note 2.2. Accounting estimates could change from period to period. Actual results may differ from those estimates. Appropriate changes in estimates are made as management becomes aware of changes in circumstances surrounding the estimates. Changes in estimates are reflected in the financial statements in the period in which changes are made and, if material, their effects are disclosed in the notes to the financial statements.

1.3 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 realised or intended to be sold or consumed in normal operating cycle

¦ Held primarily for the purpose of trading

¦ Expected to be realised 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.

Deferred tax assets and liabilities are classified as non-current assets and liabilities.

The normal operating cycle, in the context of the company, is the time between the acquisition of land for a real estate project and its realisation in cash and cash equivalents by way of sale of developed units.

1.4 Property, Plant and Equipment

Freehold/Leasehold land and capital work-in-progress is carried at cost. All other items of property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment loss, if any.

The cost of an item of property, plant and equipment comprises of its purchase price, any costs directly attributable to its acquisition and an initial estimate of the costs of dismantling and removing the item and restoring the site on which it is located, the obligation for which the company incurs when the item is acquired. Subsequent costs are included in the asset''s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the company and the cost of the item can be measured reliably. All other repairs and maintenance are charged to profit or loss during the reporting period in which they are incurred. On transition to Ind AS, the company has elected to continue with the carrying value of all its property, plant and equipment recognised as at April 1, 2015 measured as per the previous GAAP and use that carrying value as the deemed cost of the property, plant and equipment.

Depreciation on property, plant and equipment is calculated using the straight-line method to allocate their cost, net of their residual values, over their estimated useful lives. The useful lives estimated for the major classes of property, plant and equipment are as follows:

The useful lives have been determined based on technical evaluation done by the management''s experts, which in few cases are different than the lives as specified by Schedule II to the Companies Act, 2013. The residual values are not more than 5% of the original cost of the asset. The asset'' residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period.

An item of property, plant and equipment and any significant part initially recognised is derecognised upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on de-recognition of the asset is included in the statement of profit and loss when

the asset is derecognised.

1.5 Inventories

Inventories are valued as under:

I. Completed Flats - At lower of Cost or Market value

II. Construction Work-in-Progress - At Cost

Construction Work-in-Progress includes cost of land, premium for development rights, construction costs, allocated interest and expenses incidental to the projects undertaken by the Company.

1.6 Cash and Cash Equivalents

Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short term deposits maturing within twelve months from the date of Balance Sheet, which are subject to an insignificant risk of changes in value. Bank overdrafts are shown under borrowings in the Balance Sheet.

1.7 Financial Instruments

A. Financial Instruments - Initial recognition and measurement

Financial assets and financial liabilities are recognised in the company''s statement of financial position when the company becomes a party to the contractual provisions of the instrument. The company determines the classification of its financial assets and liabilities at initial recognition. All financial assets are recognised initially at fair value plus, in the case of financial assets not recorded at fair value through profit or loss, transaction costs that are attributable to the acquisition of the financial asset.

B. Financial assets -Subsequent measurement

The Subsequent measurement of financial assets depends on their classification which is as follows:

a) Financial assets at fair value through profit or loss

Financial assets at fair value through profit and loss include financial assets held for sale in the near term and those designated upon initial recognition at fair value through profit or loss.

b) Financial assets measured at amortised cost

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. Trade receivables do not carry any interest and are stated at their nominal value as reduced by appropriate allowance for estimated irrecoverable amounts based on the ageing of the receivables balance and historical experience. Additionally, a large number of minor receivables are grouped into homogenous groups and assessed for impairment collectively. Individual trade receivables are written off when management deems them not to be collectible.

All equity investments, except investments in subsidiaries, joint ventures and associates, falling within the scope of Ind AS 109, are measured at fair value through Other Comprehensive Income (OCI). The company makes an irrevocable election on an instrument by instrument basis to present in other comprehensive income subsequent changes in the fair value. The classification is made on initial recognition and is irrevocable. If the company decides to designate an equity instrument at fair value through OCI, then all fair value changes on the instrument, excluding dividends, are recognized in the OCI.

C. Financial assets -Derecognition

The company derecognises a financial asset when the contractual rights to the cash flows from the assets expire or it transfers the financial asset and substantially all the risks and rewards of ownership of the asset. Upon derecognition of equity instruments designated at fair value through OCI, the associated fair value changes of that equity instrument is transferred from OCI to Retained Earnings.

D. Financial liabilities -Subsequent measurement

The Subsequent measurement of financial liabilities depends on their classification which is as follows:

a) Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities held for trading, if any.

b) Financial liabilities measured at amortised cost

Interest bearing loans and borrowings are subsequently measured at amortised cost using the effective interest rate method (EIR). Amortised cost is calculated by taking into account any discount or premium on acquisition and fee or costs that are integral part of the EIR. The EIR amortised is included in finance costs in the statement of profit and loss.

The company has taken loan from NBFCs for project. As per Ind AS, the cost of processing should be added to Loan amount and to be transferred to profit and loss account as per tenure of Term loan.

Since, the amount of processing charges and impact of Ind AS applicability is not material, the company has decided to take exemption from conversion of the same on the basis of materiality concept.

E. Financial liabilities -Derecognition

A financial liability is derecognised when the obligation under the liability is discharged or expires.

F. Offsetting Financial Instruments

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

The company measures certain financial instruments at fair value at each reporting date. 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 presumption that the transaction to sell the asset or transfer the liability takes place either:

¦ In the principal market for the assets 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 to the company.

The company uses valuation technique 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.

1.8 Revenue Recognition

a) The Company is following the "Percentage of Completion Method" of accounting. 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.

Construction revenue on projects have been recognized on percentage of completion method provided the following thresholds have been met:

I. All critical approvals necessary for the commencement have been obtained;

II. The expenditure incurred on construction and development costs is not less than 25 per cent of the total estimated construction and development costs;

III. At least 25 percent of the saleable project area is secured by contracts or agreements with buyers; and

IV. At least 10 percent of the agreement value is realized at the reporting date in respect of such contracts and it is reasonable to expect that the parties to such contracts will comply with the payment terms as defined in the contracts.

b) Determination of revenues under the percentage of completion method necessarily involves making estimates, some of which are of a technical nature, concerning, where relevant, the percentages of completion, costs to completion, the expected revenues from the project or activity and the foreseeable losses to completion. Estimates of project income, as well as project costs, are reviewed periodically. The effect of changes, if any, to estimates is recognized in the financial statements for the period in which such changes are determined. Losses, if any, are fully provided for immediately.

c) Revenue from the Construction contracts is recognised on the basis of percentage of completion method as specified under Ind AS 15 issued by the Institute of the Chartered Accountants of India. Accordingly the revenue is recognised after assessing the stage of completion as at the Balance Sheet date.

d) For completed projects revenue is recognised when significant risks and rewards in respect of ownership of the goods are transferred to the customer.

e) Interest income is recognised on time proportion basis.

f) Dividend income is recognized when the right to receive the same is established

1.9 Impairment of Assets

The Company assesses at each reporting date whether there is any indication that assets may be impaired. If any such indications exist, the Company estimates the recoverable amount of the assets or the cash-generating unit and if the same 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 balance sheet date there is an indication that if a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the assets are reflected at the recoverable amount.

1.10 Depreciation and Amortization

Depreciation on tangible assets is provided on the straight-line method over the useful lives of assets estimated by the Management. Depreciation for assets purchased / sold during a period is proportionately charged. Intangible assets are amortized over their respective individual estimated useful lives on a straight-line basis, commencing from the date the asset is available to the Company for its use.

Depreciation is provided based on useful life of the assets as prescribed in Schedule II to the Companies Act, 2013

1.11 Employee Benefits Defined Contribution Plans

A defined contribution plan is a post-employment benefit plan under which the Company pays specified contributions for provident fund and pension as per the provisions of the Provident Fund Act, 1952 to the government. The Company''s contribution is recognised as an expense in the Profit and Loss Statement during the period in which the employee renders the related service. The company''s obligation is limited to the amounts contributed by it.

Currently, only defined benefit plan such as Provident Fund Is applicable to the Company since employees on payroll of the company is very less.

If the company hire more employees and it exceeds threshold specified in Gratutiy Act, then the company will have to make provision for defined Long term benefit plans. For this the company have to take actuarial valuation report.

1.12 Borrowing Costs

Borrowing costs that are directly attributable to the acquisition, construction or production of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to Profit & Loss Account.

1.13 Tax Expense

i. Tax expense comprises of current tax and deferred tax.

ii. Current tax is measured at the amount expected to be paid to the tax authorities, using the applicable tax rates as per the Income Tax Act, 1961.

iii. Deferred income tax reflect the current period timing differences between taxable income and accounting income for the period and reversal of timing differences of earlier years/ period. Deferred tax assets are recognised only to the extent that there is a reasonable certainty that sufficient future income will be available.

iv. Deferred tax assets and liabilities are measured using the tax rates and tax law that have been enacted or substantively enacted by the Balance Sheet date.

1.14 Earnings Per Share

i) Basic earnings per share are calculated by dividing the net profit for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.

ii) 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 are adjusted for the effects of all dilutive potential equity shares, if any.

1.15 Provisions, Contingent Liabilities and Contingent Assets

a) A provision is recognised when the Company has a present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to their present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

b) Contingent liabilities, if any, are disclosed separately by way of note to financial statements after careful evaluation by the management of the facts and legal aspects of the matter involved in case of:

¦ A present obligation arising from the past event, when it is not probable that an outflow of resources will be required to settle the obligation.

¦ A possible obligation, unless the probability of outflow of resources is remote.

c) Contingent assets are not recognized.

1.16 Dividends

Provision is made for the amount of any dividend declared, being appropriately authorised and no longer at the discretion of the company, on or before the end of the reporting period but not distributed at the end of the reporting period.

1.17 Exceptional Items

Exceptional items refer to items of income or expense within statement of profit and loss from ordinary activities which are non-recurring and are of such size, nature or incidence that their separate disclosure is considered necessary to explain the performance of the company.

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Mar 31, 2023

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

1.1 Basis of preparation of financial statements:

The financial statements (Separate financial statements) have been prepared on accrual basis in
accordance with Indian Accounting Standards (Ind AS) notified under the Companies (Indian Ac¬
counting Standards) Rules, 2015 and the provisions of the Companies Act, 2013.

For all periods up to and including the year ended March 31, 2023, the company prepared its finan¬
cial statements in accordance with accounting standards notified under section 133 of the Compa¬
nies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (previous
GAAP).

The financial statements have been prepared on a historical cost basis, except for certain financial
assets and liabilities which have been measured at fair value (refer accounting policy regarding
financial instruments). The financial statements are presented in Indian Rupees, except as stated
otherwise.

1.2 Estimates and Judgements

The preparation of the financial statements in conformity with Ind AS requires management to
make estimates, judgments and assumptions. These estimates, judgments and assumptions effect
the application of accounting policies and the reported amounts of assets and liabilities, the disclo¬
sures of contingent assets and liabilities at the date of the financial statements and reported amounts
of revenues and expenses during the period. Application of accounting policies that require critical
accounting estimates involving complex and subjective judgments and the use of assumptions in
these financial statements have been disclosed in note 2.2. Accounting estimates could change
from period to period. Actual results may differ from those estimates. Appropriate changes in esti¬
mates are made as management becomes aware of changes in circumstances surrounding the
estimates. Changes in estimates are reflected in the financial statements in the period in which
changes are made and, if material, their effects are disclosed in the notes to the financial state¬
ments.

1.3 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 realised or intended to be sold or consumed in normal operating cycle

¦ Held primarily for the purpose of trading

¦ Expected to be realised 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.

Deferred tax assets and liabilities are classified as non-current assets and liabilities.

The normal operating cycle, in the context of the company, is the time between the acquisition of
land for a real estate project and its realisation in cash and cash equivalents by way of sale of
developed units.

1.4 Property, Plant and Equipment

Freehold/Leasehold land and capital work-in-progress is carried at cost. All other items of property,
plant and equipment are stated at cost less accumulated depreciation and accumulated impair¬
ment loss, if any.

The cost of an item of property, plant and equipment comprises of its purchase price, any costs
directly attributable to its acquisition and an initial estimate of the costs of dismantling and remov¬
ing the item and restoring the site on which it is located, the obligation for which the company
incurs when the item is acquired. Subsequent costs are included in the asset''s carrying amount or
recognised as a separate asset, as appropriate, only when it is probable that future economic ben¬
efits associated with the item will flow to the company and the cost of the item can be measured
reliably. All other repairs and maintenance are charged to profit or loss during the reporting period
in which they are incurred. On transition to Ind AS, the company has elected to continue with the
carrying value of all its property, plant and equipment recognised as at April 1, 2015 measured as
per the previous GAAP and use that carrying value as the deemed cost of the property, plant and
equipment.

Depreciation on property, plant and equipment is calculated using the straight-line method to allo¬
cate their cost, net of their residual values, over their estimated useful lives. The useful lives esti¬
mated for the major classes of property, plant and equipment are as follows:

The useful lives have been determined based on technical evaluation done by the management''s
experts, which in few cases are different than the lives as specified by Schedule II to the Companies
Act, 2013. The residual values are not more than 5% of the original cost of the asset. The asset''
residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each re¬
porting period.

An item of property, plant and equipment and any significant part initially recognised is derecognised
upon disposal or when no future economic benefits are expected from its use or disposal. Any gain

or loss arising on de-recognition of the asset is included in the statement of profit and loss when
the asset is derecognised.

1.5 Inventories

Inventories are valued as under:

I. Completed Flats - At lower of Cost or Market value

II. Construction Work-in-Progress - At Cost

Construction Work-in-Progress includes cost of land, premium for development rights, construc¬
tion costs, allocated interest and expenses incidental to the projects undertaken by the Company.

1.6 Cash and Cash Equivalents

Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short term
deposits maturing within twelve months from the date of Balance Sheet, which are subject to an
insignificant risk of changes in value. Bank overdrafts are shown under borrowings in the Balance
Sheet.

1.7 Financial Instruments

A. Financial Instruments - Initial recognition and measurement

Financial assets and financial liabilities are recognised in the company''s statement of fi¬
nancial position when the company becomes a party to the contractual provisions of the
instrument. The company determines the classification of its financial assets and liabilities
at initial recognition. All financial assets are recognised initially at fair value plus, in the
case of financial assets not recorded at fair value through profit or loss, transaction costs
that are attributable to the acquisition of the financial asset.

B. Financial assets -Subsequent measurement

The Subsequent measurement of financial assets depends on their classification which is
as follows:

a) Financial assets at fair value through profit or loss

Financial assets at fair value through profit and loss include financial assets held
for sale in the near term and those designated upon initial recognition at fair value
through profit or loss.

b) Financial assets measured at amortised cost

Loans and receivables are non-derivative financial assets with fixed or determin¬
able payments that are not quoted in an active market. Trade receivables do not
carry any interest and are stated at their nominal value as reduced by appropriate
allowance for estimated irrecoverable amounts based on the ageing of the receiv¬
ables balance and historical experience. Additionally, a large number of minor re¬
ceivables are grouped into homogenous groups and assessed for impairment col¬
lectively. Individual trade receivables are written off when management deems
them not to be collectible.

All equity investments, except investments in subsidiaries, joint ventures and asso¬
ciates, falling within the scope of Ind AS 109, are measured at fair value through
Other Comprehensive Income (OCI). The company makes an irrevocable election
on an instrument by instrument basis to present in other comprehensive income
subsequent changes in the fair value. The classification is made on initial recogni¬
tion and is irrevocable. If the company decides to designate an equity instrument
at fair value through OCI, then all fair value changes on the instrument, excluding
dividends, are recognized in the OCI.

C. Financial assets -Derecognition

The company derecognises a financial asset when the contractual rights to the cash flows from the
assets expire or it transfers the financial asset and substantially all the risks and rewards of owner¬
ship of the asset. Upon derecognition of equity instruments designated at fair value through OCI,
the associated fair value changes of that equity instrument is transferred from OCI to Retained
Earnings.

D. Financial liabilities -Subsequent measurement

The Subsequent measurement of financial liabilities depends on their classification which is as fol¬
lows:

a) Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities held for
trading, if any.

b) Financial liabilities measured at amortised cost

Interest bearing loans and borrowings are subsequently measured at amortised cost using the ef¬
fective interest rate method (EIR). Amortised cost is calculated by taking into account any discount
or premium on acquisition and fee or costs that are integral part of the EIR. The EIR amortised is
included in finance costs in the statement of profit and loss.

The company has taken loan from NBFCs for project. As per Ind AS, the cost of processing should be
added to Loan amount and to be transferred to profit and loss account as per tenure of Term loan.

Since, the amount of processing charges and impact of Ind AS applicability is not material, the
company has decided to take exemption from conversion of the same on the basis of materiality
concept.

E. Financial liabilities -Derecognition

A financial liability is derecognised when the obligation under the liability is discharged or expires.

F. Offsetting Financial Instruments

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

The company measures certain financial instruments at fair value at each reporting date. Fair value
is the price that would be received to sell an asset or paid to transfer a liability in an orderly trans¬
action between market participants at the measurement date. The fair value measurement is based
on presumption that the transaction to sell the asset or transfer the liability takes place either:

¦ In the principal market for the assets 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 to the company.

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

1.8 Revenue Recognition

a) The Company is following the "Percentage of Completion Method" of accounting. 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.

Construction revenue on projects have been recognized on percentage of completion
method provided the following thresholds have been met:

I. All critical approvals necessary for the commencement have been obtained;

II. The expenditure incurred on construction and development costs is not less than
25 per cent of the total estimated construction and development costs;

III. At least 25 percent of the saleable project area is secured by contracts or agree¬
ments with buyers; and

IV. At least 10 percent of the agreement value is realized at the reporting date in re¬
spect of such contracts and it is reasonable to expect that the parties to such con¬
tracts will comply with the payment terms as defined in the contracts.

b) Determination of revenues under the percentage of completion method necessarily in¬
volves making estimates, some of which are of a technical nature, concerning, where rel¬
evant, the percentages of completion, costs to completion, the expected revenues from
the project or activity and the foreseeable losses to completion. Estimates of project in¬
come, as well as project costs, are reviewed periodically. The effect of changes, if any, to
estimates is recognized in the financial statements for the period in which such changes
are determined. Losses, if any, are fully provided for immediately.

c) Revenue from the Construction contracts is recognised on the basis of percentage of
completion method as specified under Ind AS 15 issued by the Institute of the Chartered
Accountants of India. Accordingly the revenue is recognised after assessing the stage of
completion as at the Balance Sheet date.

d) For completed projects revenue is recognised when significant risks and rewards in re¬
spect of ownership of the goods are transferred to the customer.

e) Interest income is recognised on time proportion basis.

f) Dividend income is recognized when the right to receive the same is established

1.9 Impairment of Assets

The Company assesses at each reporting date whether there is any indication that assets may be
impaired. If any such indications exist, the Company estimates the recoverable amount of the as¬
sets or the cash-generating unit and if the same 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 balance sheet date there is an indication that if a
previously assessed impairment loss no longer exists, the recoverable amount is reassessed and
the assets are reflected at the recoverable amount.

1.10 Depreciation and Amortization

Depreciation on tangible assets is provided on the straight-line method over the useful lives of
assets estimated by the Management. Depreciation for assets purchased / sold during a period is
proportionately charged. Intangible assets are amortized over their respective individual estimated
useful lives on a straight-line basis, commencing from the date the asset is available to the Com¬
pany for its use.

Depreciation is provided based on useful life of the assets as prescribed in Schedule II to the Com¬
panies Act, 2013

1.11 Employee Benefits
Defined Contribution Plans

A defined contribution plan is a post-employment benefit plan under which the Company pays
specified contributions for provident fund and pension as per the provisions of the Provident Fund
Act, 1952 to the government. The Company''s contribution is recognised as an expense in the Profit
and Loss Statement during the period in which the employee renders the related service. The
company''s obligation is limited to the amounts contributed by it.

Currently, only defined benefit plan such as Provident Fund Is applicable to the Company since
employees on payroll of the company is very less.

If the company hire more employees and it exceeds threshold specified in Gratutiy Act, then the
company will have to make provision for defined Long term benefit plans. For this the company
have to take actuarial valuation report.

1.12 Borrowing Costs

Borrowing costs that are directly attributable to the acquisition, construction or production of quali¬
fying assets are capitalised as part of the cost of such assets. A qualifying asset is one that neces¬
sarily takes substantial period of time to get ready for intended use. All other borrowing costs are
charged to Profit & Loss Account.

1.13 Tax Expense

i. Tax expense comprises of current tax and deferred tax.

ii. Current tax is measured at the amount expected to be paid to the tax authorities, using the
applicable tax rates as per the Income Tax Act, 1961.

iii. Deferred income tax reflect the current period timing differences between taxable income
and accounting income for the period and reversal of timing differences of earlier years/
period. Deferred tax assets are recognised only to the extent that there is a reasonable
certainty that sufficient future income will be available.

iv. Deferred tax assets and liabilities are measured using the tax rates and tax law that have
been enacted or substantively enacted by the Balance Sheet date.

1.14 Earnings Per Share

i) Basic earnings per share are calculated by dividing the net profit for the period attributable
to equity shareholders by the weighted average number of equity shares outstanding dur¬
ing the period.

ii) 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 outstand¬
ing during the period are adjusted for the effects of all dilutive potential equity shares, if
any.

---

Mar 31, 2016

1.1 Basis of preparation of financial statements:

The financial statements have been prepared and presented under the historical cost convention, on the accrual basis of accounting in accordance with the accounting principles generally accepted in India (''Indian GAAP'') and comply with the Accounting standards prescribed in the Companies (Accounting Standards) Rules, 2006 which continue to apply under Section 133 of the Companies Act, 2013, (''the Act'') read with Rule 7 of the Companies (Accounts) Rules, 2014 and other relevant provisions of the Companies Act, 2013, to the extent applicable. Further, the guidance notes/announcements issued by the Institute of Chartered Accountants of India (ICAI) are also considered, wherever applicable.

1.2 Presentation & disclosure of financial statements

The company has prepared & presented the financial statements as on March 31, 2016 as per the Schedule III notified under the Companies Act, 2013. The Cash Flow Statement has been prepared and presented as per the requirements of Accounting Standard (AS) 3 "Cash Flow Statements".

1.3 Use of estimates:

The preparation of the financial statements in conformity with Indian GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent liabilities as at the date of financial statements and reported amounts of revenue and expenses during the reported period. Such estimates are on a reasonable and prudent basis taking into account all available information; actual results could differ from estimates. Differences on account of revision of estimates actual outcome and existing estimates are recognized prospectively once such results are known / materialized in accordance with the requirements of the respective accounting standard, as may be applicable.

1.4 Revenue Recognition

a) The Company is following the "Percentage of Completion Method" of accounting. 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. Up to March 31, 2013 revenue was recognized only if the actual project cost incurred is 20% or more of the total estimated project cost.

Effective April 1, 2013, in accordance with the "Guidance Note on Accounting for Real Estate Transactions (Revised 2012)" (Guidance Note), all projects commencing on or after the said date or projects which have already commenced, but where the revenue is recognized for the first time on or after the above date, Construction revenue on such projects have been recognized on percentage of completion method provided the following thresholds have been met:

I. All critical approvals necessary for the commencement have been obtained;

II. The expenditure incurred on construction and development costs is not less than 25 per cent of the total estimated construction and development costs;

III. At least 25 percent of the saleable project area is secured by contracts or agreements with buyers; and

IV. At least 10 percent of the agreement value is realized at the reporting date in respect of such contracts and it is reasonable to expect that the parties to such contracts will comply with the payment terms as defined in the contracts.

b) Determination of revenues under the percentage of completion method necessarily involves making estimates, some of which are of a technical nature, concerning, where relevant, the percentages of completion, costs to completion, the expected revenues from the project or activity and the foreseeable losses to completion. Estimates of project income, as well as project costs, are reviewed periodically. The effect of changes, if any, to estimates is recognized in the financial statements for the period in which such changes are determined. Losses, if any, are fully provided for immediately.

c) Revenue from the Construction contracts is recognized on the basis of percentage of completion method as specified under AS 7 issued by the Institute of the Chartered Accountants of India. Accordingly the revenue is recognized after assessing the stage of completion as at the Balance Sheet date.

d) For completed projects revenue is recognized when significant risks and rewards in respect of ownership of the goods are transferred to the customer.

e) Interest income is recognized on time proportion basis.

f) Dividend income is recognized when the right to receive the same is established

1.5 Fixed Assets

The fixed assets are stated at cost less accumulated depreciation and impairment, if any. Cost comprises of all expenses incurred in bringing the assets to its present location, including installation and commissioning expenses. The indirect expenditure incurred during the recommencement period is allocated proportionately over the cost of the relevant assets.

1.6 Impairment

The Company assesses at each balance sheet whether there is any indication that assets may be impaired. If any such indications exist, the Company estimates the recoverable amount of the assets or the cash-generating unit and if the same 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 recognized in the statement of profit and loss. If at the balance sheet date there is an indication that if a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the assets are reflected at the recoverable amount.

1.7 Depreciation

Depreciation on tangible assets is provided on the straight-line method over the useful lives of assets estimated by the Management. Depreciation for assets purchased / sold during a period is proportionately charged. Intangible assets are amortized over their respective individual estimated useful lives on a straight-line basis, commencing from the date the asset is available to the Company for its use.

Depreciation is provided based on useful life of the assets as prescribed in Schedule II to the Companies Act, 2013

1.8 Inventories Inventories are valued as under:

I Completed Flats - At lower of Cost or Market value

II Construction Work-in-Progress - At Cost

Construction Work-in-Progress includes cost of land, premium for development rights, construction costs, allocated interest and expenses incidental to the projects undertaken by the Company.

1.9 Investments

Noncurrent Investments are carried at cost. Provision for diminution in the value of long-term investment is made only if such a decline is other than temporary.

1.10 Employee Benefits Defined Contribution Plans

A defined contribution plan is a post-employment benefit plan under which the Company pays specified contributions for provident fund and pension as per the provisions of the Provident Fund Act, 1952 to the government. The Company''s contribution is recognized as an expense in the Profit and Loss Statement during the period in which the employee renders the related service. The company''s obligation is limited to the amounts contributed by it.

1.11 Borrowing Costs

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

1.12 Tax Expense

i. Tax expense comprises of current tax and deferred tax.

ii. Current tax is measured at the amount expected to be paid to the tax authorities, using the applicable tax rates as per the Income Tax Act, 1961.

iii. Deferred income tax reflect the current period timing differences between taxable income and accounting income for the period and reversal of timing differences of earlier years/period. Deferred tax assets are recognized only to the extent that there is a reasonable certainty that sufficient future income will be available.

iv. Deferred tax assets and liabilities are measured using the tax rates and tax law that have been enacted or substantively enacted by the Balance Sheet date.

v. Minimum Alternate Tax (MAT) credit is recognized as an asset when and to the extent there is a convincing evidence that the company will pay income tax higher than that computed under MAT, during the period that MAT is permitted to be set off under the Income Tax Act, 1961 (specified period). In the year, in which the MAT credit becomes eligible to be recognized as asset in accordance with recommendations contained in the Guidance Note issued by Institute of Chartered Accountants of India (ICAI), the said asset is created by way of credit to the profit and loss account and shown as MAT credit entitlement. The company review the same at each balance sheet date and writes down the carrying amount of MAT credit entitlement to the extent there is no longer convincing evidence to the effect that company will pay Income Tax higher than MAT during the specified period.

1.13 Earnings Per Share

i) Basic earnings per share are calculated by dividing the net profit for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.

ii) 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 are adjusted for the effects of all dilutive potential equity shares, if any.

1.14 Segment Reporting

The company is operating only in the business of construction contracts. Again the Company operates only under one geographical segment. So the disclosures in pursuant to Accounting Standard (AS-17) issued by the ICAI are not applicable to the Company.

1.15 Provisions, Contingent Liabilities and Contingent Assets

a) A provision is recognized when the Company has a present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to their present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

b) Contingent liabilities, if any, are disclosed separately by way of note to financial statements after careful evaluation by the management of the facts and legal aspects of the matter involved in case of:

- A present obligation arising from the past event, when it is not probable that an outflow of resources will be required to settle the obligation.

- A possible obligation, unless the probability of outflow of resources is remote.

c) Contingent assets are not recognized.

---

Mar 31, 2015

1.1 Basis of preparation of financial statements:

The financial statements have been prepared and presented under the historical cost convention, on the accrual basis of accounting in accordance with the accounting principles generally accepted in India ('Indian GAAP') and comply with the Accounting standards prescribed in the Companies (Accounting Standards) Rules, 2006 which continue to apply under Section 133 of the Companies Act, 2013, ('the Act') read with Rule 7 of the Companies (Accounts) Rules, 2014 and other relevant provisions of the Companies Act, 1956, to the extent applicable. Further, the guidance notes/ announcements issued by the Institute of Chartered Accountants of India (ICAI) are also consid- ered, wherever applicable.

1.2 Presentation & disclosure of financial statements

The company has prepared & presented the financial statements as on 31st March, 2015 as per the Schedule III notified under the Companies Act, 2013. The Cash Flow Statement has been pre- pared and presented as per the requirements of Accounting Standard (AS) 3 "Cash Flow State- ments".

1.3 Use of estimates:

The preparation of the financial statements in conformity with Indian GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent liabilities as at the date of financial statements and reported amounts of revenue and expenses during the reported period. Such estimates are on a reasonable and pru- dent basis taking into account all available information; actual results could differ from estimates. Differences on account of revision of estimates actual outcome and existing estimates are recognised prospectively once such results are known / materialised in accordance with the requirements of the respective accounting standard, as may be applicable.

1.4 Revenue Recognition

a) The Company is following the "Percentage of Completion Method" of accounting. 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. Up to 31st March 2013 revenue was recognized only if the actual project cost incurred is 20% or more of the total estimated project cost.

Effective 1st April 2013, in accordance with the "Guidance Note on Accounting for Real Estate Transactions (Revised 2012)" (Guidance Note), all projects commencing on or after the said date or projects which have already commenced, but where the revenue is recog- nized for the first time on or after the above date, Construction revenue on such projects have been recognized on percentage of completion method provided the following thresh- olds have been met:

I. All critical approvals necessary for the commencement have been obtained;

II. The expenditure incurred on construction and development costs is not less than 25 per cent of the total estimated construction and development costs;

III. At least 25 percent of the saleable project area is secured by contracts or agree- ments with buyers; and

IV. At least 10 percent of the agreement value is realized at the reporting date in respect of such contracts and it is reasonable to expect that the parties to such contracts will comply with the payment terms as defined in the contracts.

b) Determination of revenues under the percentage of completion method necessarily involves making estimates, some of which are of a technical nature, concerning, where relevant, the percentages of completion, costs to completion, the expected revenues from the project or activity and the foreseeable losses to completion. Estimates of project income, as well as project costs, are reviewed periodically. The effect of changes, if any, to estimates is recog- nized in the financial statements for the period in which such changes are determined. Losses, if any, are fully provided for immediately.

c) Revenue from the Construction contracts is recognised on the basis of percentage of comple- tion method as specified under AS 7 issued by the Institute of the Chartered Accountants of India. Accordingly the revenue is recognised after assessing the stage of completion as at the Balance Sheet date.

d) For completed projects revenue is recognised when significant risks and rewards in respect of ownership of the goods are transferred to the customer.

e) Interest income is recognised on time proportion basis.

f) Dividend income is recognized when the right to receive the same is established

1.5 Fixed Assets

The fixed assets are stated at cost less accumulated depreciation and impairment, if any. Cost comprises of all expenses incurred in bringing the assets to its present location, including installa- tion and commissioning expenses. The indirect expenditure incurred during the pre-commence- ment period is allocated proportionately over the cost of the relevant assets.

1.6 Impairment

The Company assesses at each balance sheet whether there is any indication that assets may be impaired. If any such indications exist, the Company estimates the recoverable amount of the assets or the cash-generating unit and if the same 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 balance sheet date there is an indication that if a previously assessed impairment loss no longer exists, the recoverable amount is reas- sessed and the assets are reflected at the recoverable amount.

1.7 Depreciation

Depreciation on tangible assets is provided on the straight-line method over the useful lives of assets estimated by the Management. Depreciation for assets purchased / sold during a period is proportionately charged. Intangible assets are amortized over their respective individual estimated useful lives on a straight-line basis, commencing from the date the asset is available to the Com- pany for its use.

Depreciation is provided based on useful life of the assets as prescribed in Schedule II to the Com- panies Act, 2013

1.8 Inventories

Inventories are valued as under:

I Completed Flats - At lower of Cost or Market value

II Construction Work-in-Progress - At Cost

Construction Work-in-Progress includes cost of land, premium for development rights, con- struction costs, allocated interest and expenses incidental to the projects undertaken by the Company.

1.9 Investments

Noncurrent Investments are carried at cost. Provision for diminution in the value of long-term investment is made only if such a decline is other than temporary.

1.10 Employee Benefits

Defined Contribution Plans

A defined contribution plan is a post-employment benefit plan under which the Company pays specified contributions for provident fund and pension as per the provisions of the Provident Fund Act, 1952 to the government. The Company's contribution is recognised as an expense in the Profit and Loss Statement during the period in which the employee renders the related service. The company's obligation is limited to the amounts contributed by it.

1.11 Borrowing Costs

Borrowing costs that are directly attributable to the acquisition, construction or production of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to Profit & Loss Account.

1.12 Provisions, contingent liabilities and contingent assets

A provision is recognised when the Company has a present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to their present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

Contingent liabilities are disclosed by way of notes to accounts unless the possibility of an outflow is remote. Contingent assets are not recognised or disclosed.

1.13 Tax Expense

i. Tax expense comprises of current tax and deferred tax.

ii. Current tax is measured at the amount expected to be paid to the tax authorities, using the applicable tax rates as per the Income Tax Act, 1961.

iii. Deferred income tax reflect the current period timing differences between taxable income and accounting income for the period and reversal of timing differences of earlier years/period. Deferred tax assets are recognised only to the extent that there is a reasonable certainty that sufficient future income will be available.

iv. Deferred tax assets and liabilities are measured using the tax rates and tax law that have been enacted or substantively enacted by the Balance Sheet date.

v. Minimum Alternate Tax (MAT) credit is recognised as an asset when and to the extent there is a convincing evidence that the company will pay income tax higher than that computed under MAT, during the period that MAT is permitted to be set off under the Income Tax Act, 1961 (specified period). In the year, in which the MAT credit becomes eligible to be recognised as asset in accordance with recommendations contained in the Guidance Note issued by Institute of Chartered Accountants of India (ICAI), the said asset is created by way of credit to the profit and loss account and shown as MAT credit entitlement. The company review the same at each balance sheet date and writes down the carrying amount of MAT credit entitlement to the extent there is no longer convincing evidence to the effect that company will pay Income Tax higher than MAT during the specified period.

1.14 Earnings Per Share

i) Basic earnings per share are calculated by dividing the net profit for the period attribut- able to equity shareholders by the weighted average number of equity shares outstanding during the period.

ii) 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 outstand- ing during the period are adjusted for the effects of all dilutive potential equity shares, if any.

1.15 Segment Reporting

The company is operating only in the business of construction contracts. Again the Company oper- ates only under one geographical segment. So the disclosures in pursuant to Accounting Standard (AS-17) issued by the ICAI are not applicable to the Company.

1.16 Provisions, Contingent Liabilities and Contingent Assets

a) A provision is recognised when the Company has a present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obliga- tion, in respect of which a reliable estimate can be made. Provisions are not discounted to their present value and are determined based on best estimate required to settle the ob- ligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

b) Contingent liabilities, if any, are disclosed separately by way of note to financial state- ments after careful evaluation by the management of the facts and legal aspects of the matter involved in case of:

* A present obligation arising from the past event, when it is not probable that an outflow of resources will be required to settle the obligation.

* A possible obligation, unless the probability of outflow of resources is remote.

c) Contingent assets are not recognized.

---

Mar 31, 2014

A) Basis of preparation of financial statements:

The financial statements have been prepared in accordance with the generally accepted accounting principles in India. The Company has prepared these financial statements to comply in all material respects with the Accounting Standards notified under the Companies (Accounting Standards) Rules,2006 (as amended) and other relevant provisions of the Companies Act, 1956, read with General Circular l!y£013 dated September 13, 2013 issued by the Ministry of Corporate Affairs, in respect of section 133 of the Companies Act, 2013 under the historical cost convention on an accrual basis. The accounting policies have been consistently applied by the Company.

b) Use of estimates:

The presentation of financial statements in conformity with the generally accepted accounting principles requires estimates and assumptions to be made that may affect the reported amount of assets and liabilities and disclosures relating to contingent liabilities as at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimated.

c) Revenue Recognition

The Company is following the "Percentage of Completion Method" of accounting. 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. Up to 31st March 2013 revenue was recognized only if the actual project cost incurred is 20% or more of the total estimated project cost.

Effective 1st April 2013, in accordance with the "Guidance Note on Accounting for Real Estate Transactions (Revised 2012)" (Guidance Note), all projects commencing on or after the said date or projects which have already commenced, but where the revenue is recognized for the first time on or after the above date, Construction revenue on such projects have been recognized on percentage of completion method provided the following thresholds have been met:

I. All critical approvals necessary for the commencement have been obtained;

II. The expenditure incurred on construction and development costs is not less than 25 per cent of the total estimated construction and development costs;

III. At least 25 percent of the saleable project area is secured by contracts or agreements with buyers; and

IV. At least 10 percent of the agreement value is realized at the reporting date in respect of such contracts and it is reasonable to expect that the parties to such contracts will comply with the payment terms as defined in the contracts.

Determination of revenues under the percentage of completion method necessarily involves making estimates, some of which are of a technical nature, concerning, where relevant, the percentages of completion, costs to completion, the expected revenues from the project or activity and the foreseeable losses to completion. Estimates of project income, as well as project costs, are reviewed periodically. The effect of changes, if any, to estimates is recognized in the financial statements for the period in which such changes are determined. Losses, if any, are fully provided for immediately.

Revenue from the Construction contracts is recognised on the basis of percentage of completion method as specified under AS 7 issued by the Institute of the Chartered Accountants of India. Accordingly the revenue is recognised after assessing the stage of completion as at the Balance Sheet date.

For completed projects revenue is recognised when significant risks and rewards in respect of ownership of the goods are transferred to the customer.

Interest income is accounted on an accrual basis at contracted rates.

Dividend income is recognized when the right to receive the same is established.

d) Fixed Assets

Fixed assets are stated at cost, less accumulated depreciation and impairment losses, if any. Cost includes all expenditure necessary to bring the asset to its working condition for its intended use.

The carrying amounts of the assets belonging to each cash-generating unit (''CGU'') are reviewed at each balance sheet date to assess whether they are recorded in excess of their recoverable amounts, and where carrying amounts exceed the recoverable amount of the assets'' CGU, assets are written down to their recoverable amount.

e) Depreciation

Depreciation is provided on Fixed Assets at the rates for Straight Line prescribed by Schedule XIV of the Companies Act, 1956.

f) inventories

Inventories are valued as under:

I Completed Flats - At lower of Cost or Market value

II Construction Work-in-Progress - At Cost

Construction Work-in-Progress includes cost of land, premium for development rights, construction costs, allocated interest and expenses incidental to the projects undertaken by the Company.

g) Investments

Long Term Investments are carried at cost. However, provision is made to recognise a decline, other than temporary, in the value of long term investments.

h) Retirement and other employee benefits

Retirement and other employee related benefits are provided for as and when incurred.

i) Borrowing Costs

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

j) Provisions, contingent liabilities and contingent assets

A provision is recognised when the Company has a present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to their present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

Contingent liabilities are disclosed by way of notes to accounts unless the possibility of an outflow is remote. Contingent assets are not recognised or disclosed.

k) Income Tax

Tax expense for a year comprises of current tax, deferred tax. Current tax is measured after taking into consideration, the deductions and exemptions admissible under the provisions of the Income Tax Act, 1961.

Deferred tax reflects the impact of current year timing differences between taxable j income and accounting income for the year and reversal of timing differences of earlier years. Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date.

l) Earnings Per Share

Basic earnings per share are calculated by dividing the net profit for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.

m) Segment Reporting

The business of the Company is only construction and hence it''s operating only in one business segment. Again the Company operates only under one geographical segment. So the disclosures in pursuant to Accounting Standard (AS-17) issued by the ICAI are not applicable to the Company.

---

Mar 31, 2013

A) Basis of preparation of financial statements:

The financial statements have been prepared under the historical cost convention, on accrual basis of accounting to comply in all material respects, with the mandatory accounting standards as notified by the companies (Accounting Standards) Rules ,2006 as amended(''the rules'') and the relevant provisions of the Companies Act,1956(''the Act'') The accounting policies have been consistently applied by the Company; and the accounting policies not referred to otherwise, are in conformity with Indian Generally Accepted Accounting Principles(''Indian GAAP'').

b) Change in accounting policy:

Presentation and disclosure of financial statements

During the year ended March, 31 2013, the revised Schedule VI notified under the Act has become applicable to the company, for 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. However, it has significant impact on presentation and disclosures made in financial statements. The company has also reclassified the previous year figures in accordance with the requirements applicable in the current year.

c) Use of estimates:

The presentation of financial statements in conformity with the generally accepted accounting principles requires estimates and assumptions to be made that may affect the reported amount of assets and liabilities and disclosures relating to contingent liabilities as at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimated.

d) Revenue Recognition

Revenue from the Construction contracts is recognized on the basis of percentage of completion method as specified under AS 7 issued by the Institute of the Chartered Accountants of India. Accordingly the revenue is recognized after assessing the stage of completion as at the Balance Sheet date.

Revenue is recognized when significant risks and rewards in respect of ownership of the goods are transferred to the customer.

e) Fixed Assets

Fixed assets are stated at cost, less accumulated depreciation and impairment losses, if any. Cost includes all expenditure necessary to bring the asset to its working condition for its intended use.

The carrying amounts of the assets belonging to each cash-generating unit (''CGU'') are reviewed at each balance sheet date to assess whether they are recorded in excess of their recoverable amounts, and where carrying amounts exceed the recoverable amount of the assets'' CGU, assets are written down to their recoverable amount.

f) Depreciation

Depreciation is provided on Fixed Assets at the rates for Straight Line prescribed by Schedule XIV of the Companies Act, 1956.

g) Inventories

Inventories of raw materials and work in progress are valued at the lower of the cost and estimated net realizable value.

The cost of finished goods includes the cost of material, labour and other direct overheads.

h) Investments

Long Term Investments are carried at cost. However, provision is made to recognize a decline, other than temporary, in the value of long term investments.

i) Retirement and other employee benefits

Retirement and other employee related benefits are provided for gas and when incurred. j) Borrowing Costs

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

k) Provisions, contingent liabilities and contingent assets

A provision is recognized when the Company has a present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to their present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

Contingent liabilities are disclosed by way of notes to accounts unless the possibility of an outflow is remote. Contingent assets are not recognized or disclosed.

l) Income Tax

Tax expense for a year comprises of current tax, deferred tax. Current tax is measured after taking into consideration, the deductions and exemptions admissible under the provisions of the Income Tax Act, 1961.

Deferred tax reflects the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years. Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date.

m) Earnings Per Share

Basic earnings per share are calculated by dividing the net profit for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.

n) Segment Reporting

The business of the Company is only construction and hence it''s operating only in one business segment. Again the Company operates only under one geographical segment. So the disclosures in pursuant to Accounting Standard (AS-17) issued by the ICAI are not applicable to the Company.

---

Mar 31, 2010

A) Basis of preparation of financial statements:

The financial statements have been prepared under the historical cost convention, on accrual basis of accounting to comply in all material respects, with the mandatory accounting standards as notified by the companies (Accounting Standards) Rules ,2006 as amended(the rules) and the relevant provisions of the Companies Act,1956(the Act) The accounting policies have been consistently applied by the Company; and the accounting policies not referred to otherwise, are in conformity with Indian Generally Accepted Accounting Principles(lndian GAAP).

b) Use of Estimates

The presentation of financial statements in conformity with the generally accepted accounting principles requires estimates and assumptions to be made that may affect the reported amount of assets and liabilities and disclosures relating to contingent liabilities as at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimated.

c) Revenue Recognition

Revenue from the Construction contracts is recognised on the basis of percentage of completion method as specified under AS 7 issued by the Institute of the Chartered Accountants of India. Accordingly the revenue is recognised after assessing the stage of completion as at the Balance Sheet date.

Revenue is recognised when significant risks and rewards in respect of ownership of the goods are transferred to the customer.

d) Fixed Assets

Fixed assets are stated at cost, less accumulated depreciation and impairment losses, if any. Cost includes all expenditure necessary to bring the asset to its working condition for its intended use.

The carrying amounts of the assets belonging to each cash-generating unit (CGU) are reviewed at each balance sheet date to assess whether they are recorded in excess of their recoverable amounts, and where carrying amounts exceed the recoverable amount of the assets CGU, assets are written down to their recoverable amount.

e) Depreciation

Depreciation is provided on Fixed Assets at the rates for Straight Line prescribed by Schedule XIV of the Companies Act, 1956.

f) Inventories

Inventories of raw materials and work in progress are valued at the lower of the cost and estimated net realisable value.

The cost of finished goods includes the cost of material, labour and other direct overheads.

g) Investments

Long Term Investments are carried at cost. However, provision is made to recognise a decline, other than temporary, in the value of long term investments.

h) Retirement and other employee benefits

Retirement and other employee related benefits are provided for as and when incurred.

i) Borrowing Costs

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

j) Provisions, contingent liabilities and contingent assets

A provision is recognised when the Company has a present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to their present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

Contingent liabilities are disclosed by way of notes to accounts unless the possibility of an outflow is remote. Contingent assets are not recognised or disclosed.

k) Income Tax

Tax expense for a year comprises of current tax, deferred tax. Current tax is measured after taking into consideration, the deductions and exemptions admissible under the provisions of the Income Tax Act, 1961.

Deferred tax reflects the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years. Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date.

l) Earnings Per Share

Basic earnings per share are calculated by dividing the net profit for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.

m) Segment Reporting

The business of the Company is only construction and hence its operating only in one business segment. Again the Company operates only under one geographical segment. So the disclosures in pursuant to Accounting Standard (AS-17) issued by the ICAI are not applicable to the Company.