Accounting Policies of RTCL Ltd. Company

Mar 31, 2024

4) SIGNIFICANT ACCOUNTING POLICIES

These Financial Statements have been prepared in accordance with the Indian Accounting Standards ("Ind AS")
as per the Companies (Indian Accounting Standards) Rules, (Amended) 2015 and notified by Ministry of Corporate
Affairs("MCA") pursuant to Section 133 of the Companies Act, 2013 read with Rule 3.

a) Revenue Recognition

Sale of Goods:

Sales include excise duty, where applicable and represent invoice value of goods sold as reduced by rebates
and discounts.

Sale of Flats:

Sale of flat purchased from other developers is recognized on execution of transfer deed in favour of the buyer.

In respect of development projects undertaken by the company, revenue is recognised when the significant
risks and rewards of ownership of the unit in real estate have passed to the buyer and the revenue is
recognized to the extent that it is probable that the economic benefit s will flow to the Company and the revenue
can be reliably measured.

Construction Contracts:

Revenue from each Real Estate Development Project is recognized:

(i) On the basis of "Percentage Completion Method"

(ii) The percentage completion method is applied on a cumulative basis in each accounting period to the current
estimates of contract revenue and contract costs

(iii) When the stage of completion of each project reaches a significant level, which is estimated to be at least 25%
of the total estimated cost of project

(iv) When no significant uncertainty exists regarding the amount of the consideration from sale, which is estimated
on collection of at least 25% of sale consideration.

Real Estate Development Project:

The Company follows completed project method of accounting ("Project Completion Method of Accounting").
Allocable expenses incurred during the year are debited to work-in-progress account. The income is accounted
for as and when the projects get completed or substantially completed and then revenue is recognized to the
extent that it is probable that the economic benefit s will flow to the Company and the revenue can be reliably
measured.

Royalty:

Revenue is recognized on an accrual basis in accordance with the terms of the relevant agreement.

Interest:

Interest on fixed deposits is recognized on accrual basis on a time proportion basis taking in to account the
amount outstanding and the rate applicable.

Dividend:

Revenue is recognized when the right to receive the income is established.

Rent:

Revenue is recognized on an accrual basis in accordance with the terms of the relevant agreement.

b) Property, Plant and Equipment

(i) Property, plant and equipment

The Company has applied Ind AS 16 with retrospective effect for all of its property, plant and equipment
as at the transition date, viz., 1 April 2016.

The initial cost of property, plant and equipment comprises its purchase price, including import duties and
non-refundable purchase taxes, attributable borrowing cost and any other directly attributable costs of
bringing an asset to working condition and location for its intended use. It also includes the present value
of the expected cost for the decommissioning and removing of an asset and restoring the site after its
use, if the recognition criteria for a provision are met.

Expenditure incurred after the property, plant and equipment have been put into operation, such as
repairs and maintenance, are normally charged to the statements of profit and loss in the period in which
the costs are incurred. Major inspection and overhaul expenditure is capitalized if the recognition criteria
are met

When significant parts of plant and equipment are required to be replaced at intervals, the Company
depreciates them separately based on their specific useful lives. Likewise, when a major inspection is
performed, its cost is recognised in the carrying amount of the plant and equipment as a replacement if
the recognition criteria are satisfied. All other repair and maintenance costs are recognised in the
statement of profit and loss as incurred.

Gains and losses on disposal of an item of property, plant and equipment are determined by comparing
the proceeds from disposal with the carrying amount of property, plant and equipment, and are recognized
net within other income/other expenses in statement of profit and loss.

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 derecognition of the asset (calculated as the difference between the net disposal
proceeds and the carrying amount of the asset) is included in the statement of profit and loss, when the
asset is derecognised.

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

(i) Depreciation

Assets in the course of development or construction and freehold land are not depreciated. Other
property, plant and equipment are stated at cost less accumulated depreciation and any provision for
impairment. Depreciation commences when the assets are ready for their intended use.

Depreciation is provided on a pro-rata basis on the straight line method based on estimated useful life
prescribed under Schedule II to the Company Act, 2013. The estimated useful life of determined by the
management based on technical estimates as follows:

Plant and Machinery 15 Years

Furniture and Fixtures 10 Years

Office Equipment 5 Years

Computers 3 Years

Vehicles 8 Years

Individual items of assets costing up to Rs. 5,000 are fully depreciated in the year of acquisition. Land is
not depreciated.

Major inspection and other direct costs are depreciated over the estimated life of the economic benefit
derived from such costs.

When significant spare parts of an item of property, plant and equipment have different useful lives, they
are accounted for as separate items (major components) of property, plant and equipment.

Depreciation methods, useful lives and residual values are reviewed at each financial year end and changes in
estimates, if any, are accounted for prospectively.

c) Intangible assets

Intangible assets acquired are measured on initial recognition at cost. Following initial recognition, intangible
assets are carried at cost less any accumulated amortisation and accumulated impairment losses.

The useful lives of intangible assets are assessed as either finite or indefinite. The Company currently does not
have any intangible assets with indefinite useful life. Intangible assets are amortised over the useful economic
life and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The
amortisation period and the amortisation method for an intangible asset are reviewed at least at the end of each
reporting period. Changes in the expected useful life or the expected pattern of consumption of future economic
benefits embodied in the asset are considered to modify the amortisation period or method, as appropriate, and
are treated as changes in accounting estimates. The amortisation expense on intangible assets is recognised in
the statement of profit and loss unless such expenditure forms part of carrying value of another asset.

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

d) Investment in Subsidiaries, Associates and Joint Venture

Investment in subsidiaries, associates and joint venture are carried at cost less accumulated impairment losses,if
any, Where an indication of impairment exists, the carrying amount of the investment is assessed and written
down immediately to its recoverable amount. On disposal of investment in subsidiaries, associates and Joint
Ventures, the difference between net disposal proceeds and carrying amount are recognized in the statement
of profit and loss.

e) Financial instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or
equity instrument of another entity.

Financial assets

Initial recognition and measurement

All financial assets are recognised initially at fair value plus, in the case of financial assets not recorded at fair
value through statement of profit and loss, transaction costs that are attributable to the acquisition of the financial
asset. Purchases or sales of financial assets that require delivery of assets within a time frame established by
regulation or convention in the market place (regular way trades) are recognised on the trade date, i.e., the date
that the Company commits to purchase or sell the asset.

Subsequent measurement

Subsequent measurement of financial assets is described below -
Debt instruments at amortised cost

A ''debt instrument'' is measured at the amortised cost if both the following conditions are met:

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

b) Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of
principal and interest (SPPI) on the principal amount outstanding.

After initial measurement, such financial assets are subsequently measured at amortised cost using the effective
interest rate (EIR) method. Amortised cost is calculated by taking into account any discount or premium on
acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included in finance income
in the statement of profit and loss. The losses arising from impairment are recognised in the statement of profit
and loss. This category generally applies to trade and other receivables.

Debt instrument at FVTOCI

A ''debt instrument'' is classified as at the FVTOCI if both of the following criteria are met:

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

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

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
P&L. On derecognition of the asset, cumulative gain or loss previously recognised in OCI is reclassified from the
equity to P&L. Interest earned whilst holding FVTOCI debt instrument is reported as interest income using the EIR
method.

Debt instrument at FVTPL

FVTPL is a residual category for debt instruments. Any debt instrument, which does not meet the criteria for
categorization as at amortized cost or as FVTOCI, is classified as at FVTPL.

In addition, the Company may elect to designate a debt instrument, which otherwise meets amortized cost or
FVTOCI criteria, as at FVTPL. However, such election is allowed only if doing so reduces or eliminates a
measurement or recognition inconsistency (referred to as ''accounting mismatch'').

The Company has designated its investments in debt instruments as FVTPL. Debt instruments included within the
FVTPL category are measured at fair value with all changes recognized in the P&L.

Financial Assets - Derecognition

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets)
is primarily derecognised (i.e. removed from the Company''s balance sheet) when:

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

(ii) The Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay
the received cash flows in full without material delay to a third party under a ''pass-through'' arrangement? and
either (a) the Company has transferred substantially all the risks and rewards of the asset, or (b) the Company
has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred
control of the asset.

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

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

Equity Instruments

All Investment in equity Instruments classified under assets are initially measured at fair value, the company
may, on initial recognition, irrevocably elect to measure to same either at OCI or FVTPL.

The company makes such election on instruments -by -instruments basis. Fair value changes on an equity
instrument is recognized as other income in the statement of profit and loss unless the company has elected to
measure such instrument at OCI. Fair value changes excluding dividends, on an equity instrument measured at
OCI are recognized in OCI. Amounts recognized in OCI are not subsequently reclassified to the statement of profit
and loss. Dividend income on the investments in equity instruments are recognized as "Other Income" in the
statement of profit and loss.

Impairment of financial assets

In accordance with Ind AS 109, the Company applies expected credit loss (ECL) model for measurement and
recognition of impairment loss on the financial assets that are debt instruments, and are measured at amortised
cost e.g., loans, debt securities, deposits and 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 18.

The Company follows ''simplified approach'' for recognition of impairment loss allowance on trade receivables.
The application of simplified approach does not require the Company to track changes in credit risk. Rather, it
recognizes impairment loss allowance based on lifetime ECLs at each reporting date, right from its initial recognition.

For recognition of impairment loss on other financial assets and risk exposure, the Company determines that
whether there has been a significant increase in the credit risk since initial recognition. If credit risk has not
increased significantly, 12-month ECL is used to provide for impairment loss. However, if credit risk has increased
significantly, lifetime ECL is used. If, in a subsequent period, credit quality of the instrument improves such that
there is no longer a significant increase in credit risk since initial recognition, the Company reverts to recognizing
impairment loss allowance based on 12-month ECL.

Lifetime ECL are the expected credit losses resulting from all possible default events over the expected life of a
financial instrument. The 12-month ECL is a portion of the lifetime ECL which results from default events that are
possible within 12 months after the reporting date.

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

ECL impairment loss allowance (or reversal) recognized during the period is recognized as income/ expense in
the statement of profit and loss. This amount is reflected under the head ''other expenses'' in the statement of
profit and loss. The balance sheet presentation for various financial instruments is described below:

(i) Financial assets measured as at amortised cost: ECL is presented as an allowance, i.e., as an integral
part of the measurement of those assets in the balance sheet. The allowance reduces the net carrying amount.
Until the asset meets write-off criteria, the Company does not reduce impairment allowance from the gross
carrying amount.

(ii) Debt instruments measured at FVTPL: Since financial assets are already reflected at fair value, impairment
allowance is not further reduced from its value. The change in fair value is taken to the statement of Profit and
Loss.

(iii) Debt instruments measured at FVTOCI: Since financial assets are already reflected at fair value, impairment
allowance is not further reduced from its value. Rather, ECL amount is presented as ''accumulated impairment
amount'' in the OCI.

For assessing increase in credit risk and impairment loss, the Company combines financial instruments on the
basis of shared credit risk characteristics with the objective of facilitating an analysis that is designed to enable
significant increases in credit risk to be identified on a timely basis.

The Company does not have any purchased or originated credit-impaired (POCI) financial assets, i.e., financial
assets which are credit impaired on purchase/ origination.

Financial liabilities - Recognition and measurement

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

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

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

The measurement of financial liabilities depends on their classification, as described below:

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

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

• Loans and Borrowings After initial recognition, interest-bearing loans and borrowings are subsequently
measured at amortized cost using the effective interest rate (hereinafter referred as EIR) method. Gains
and losses are recognized in statement of profit and loss when the liabilities are derecognized as well as
through the EIR amortization process. Amortized cost is calculated by taking into account any discount or
premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is
included as finance costs in the statement of profit and loss.

Financial liabilities - Derecognition

A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires.
When an existing financial liability is replaced by another from the same lender on substantially different terms,
or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the
derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying
amounts is recognized in the statement of profit and loss.

Offsetting of financial instruments

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

e. Cash and cash equivalents

Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term deposits
with an original maturity of twelve months or less, which are subject to an insignificant risk of changes in value.

For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and short-term
deposits, as defined above.

f. Borrowing Costs

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

g. Impairment of Non-financial assets

The Company assesses, at each reporting date, whether there is an indication that an asset may be impaired. If
any indication exists, or when annual impairment testing for an asset is required, the Company estimates the
asset''s recoverable amount. An asset''s recoverable amount is the higher of an asset''s or cash-generating unit''s
(CGU) fair value less costs of disposal and its value in use. Recoverable amount is determined for an individual
asset, unless the asset does not generate cash inflows that are largely independent of those from other assets
or groups of assets. When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset
is considered impaired and is written down to its recoverable amount.

In assessing value in use, the estimated future cash flows are discounted to their present value using a post-tax
discount rate that reflects current market assessments of the time value of money and the risks specific to the
asset. In determining fair value less costs of disposal, recent market transactions are taken into account. If no
such transactions can be identified, an appropriate valuation model is used. These calculations are corroborated
by valuation multiples, quoted share prices for publicly traded companies or other available fair value indicators.

The Company bases its impairment calculation on detailed budgets and forecast calculations, which are prepared
separately for each of the Company''s CGUs to which the individual assets are allocated.

Impairment losses of continuing operations, including impairment on inventories, are recognized in the statement
of profit and loss.

An assessment is made at each reporting date to determine whether there is an indication that previously
recognized impairment losses no longer exist or have decreased. If such indication exists, the Company estimates
the asset''s or CGU''s recoverable amount. A previously recognized impairment loss is reversed only if there has
been a change in the assumptions used to determine the asset''s recoverable amount since the last impairment
loss was recognized. The reversal is limited so that the carrying amount of the asset does not exceed its
recoverable amount, nor exceed the carrying amount that would have been determined, net of depreciation, had
no impairment loss been recognized for the asset in prior years. Such reversal is recognized in the statement of
profit and loss.

h. Inventories

Inventories are valued at the lower of cost and net realizable value except scrap and by products which are
valued at net realizable value.

Costs incurred in bringing the inventory to its present location and conditions are accounted for as follows:

a. Raw materials: cost includes cost of purchase and other costs incurred in bringing the inventories to
their present location and condition. Cost is determined on weighted average basis.

b. Finished goods and work in progress: cost includes cost of direct materials and labour and a proportion
of manufacturing overheads based on the normal operating capacity, but excluding borrowing costs.
Cost is determined on weighted average basis. Net realisable value is the estimated selling price in the
ordinary course of business, less estimated costs of completion and the estimated costs necessary to
make the sale.

i. Taxation

Current income tax

Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the
taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or
substantively enacted, at the reporting date.

Current income tax relating to items recognized outside profit or loss is recognized outside profit or loss (either
in other comprehensive income or in equity). Current tax items are recognized in correlation to the underlying
transaction either in OCI or directly in equity. Management periodically evaluates positions taken in the tax returns
with respect to situations in which applicable tax regulations are subject to interpretation and establishes
provisions where appropriate.

Deferred tax

Deferred tax is provided using the liability method on temporary differences between the tax bases of assets
and liabilities and their carrying amounts for financial reporting purposes at the reporting date. Deferred tax
liabilities are recognised for all taxable temporary differences, except when it is probable that the temporary
differences will not reverse in the foreseeable future.

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

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it
is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to
be utilized. Unrecognized deferred tax assets are re-assessed at each reporting date and are recognized to the
extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the
asset is 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 relating to items recognized outside profit or loss is recognized outside profit or loss (either in other
comprehensive income or in equity). Deferred tax items are recognized in correlation to the underlying transaction
either in OCI or directly in equity.

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.

Sales/ value added taxes paid on acquisition of assets or on incurring expenses

Expenses and assets are recognized net of the amount of sales/ value added taxes paid, except:

a) When the tax incurred on a purchase of assets or services is not recoverable from the taxation authority, in
which case, the tax paid is recognized as part of the cost of acquisition of the asset or as part of the expense
item, as applicable.

b) When receivables and payables are stated with the amount of tax included, the net amount of tax recoverable
from, or payable to, the taxation authority is included as part of receivables or payables in the balance sheet.

Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives future economic benefits in the
form of adjustment to future income tax liability, is considered as an asset if there is convincing evidence that the
Company will pay normal income tax. Accordingly, MAT is recognized as an asset in the Balance Sheet when it
is probable that future economic benefit associated with it will flow to the Company.

j. Employee benefit schemes
Gratuity

Provision of Gratuity is created for employees who have completed continuous five years'' of services at the rate
of 15 days salary for every completed year of service based on the salary drawn during the last month of the
financial year.

Leave Encashment

Unused leave are paid to the employees at the end of year and are not accumulated.

Provident Fund

Company''s contribution to provident fund is charged to profit and loss account.

k. Earnings per share

The Company presents basic and diluted earnings per share ("EPS") data for its equity shares. Basic EPS is
calculated by dividing the profit and loss attributable to equity shareholders of the Company by the weighted
average number of equity shares outstanding during the period. Diluted EPS is determined by adjusting the profit
and loss attributable to equity shareholders and the weighted average number of equity shares outstanding for
the effects of all dilutive potential equity shares.

l. Segment Reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief
operating decision-maker. Revenue and expenses are identified to segments on the basis of their relationship to
the operating activities of the segment. Inter segment revenue are accounted for based on the cost price.
Revenue, expenses, assets and liabilities which are not allocable to segments on a reasonable basis, are
included under "Unallocated revenue/ expenses/ assets/ liabilities".

m. Cash Flow Statement

Cash flows are reported using indirect method as set out in Ind AS -7 "Statement of Cash Flows", whereby profit
/ (loss) before tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals
of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of
the Company are segregated based on the available information.

n. Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and
rewards of ownership to the lessee. All other leases are classified as operating leases.

o. Use of Estimates and Judgments

The preparation of the financial statements in conformity with Ind AS requires management to make judgements,
estimates and assumptions that affect the application of accounting policies and the reported amounts of assets,
liabilities, income, expenses and disclosures of contingent assets and liabilities at the date of these financial
statements and the reported amounts of revenues and expenses for the years presented. Actual results may
differ from these estimates under different assumptions and conditions.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to Accounting estimates are
recognized in the period in which the estimate is revised and future periods affected.

b. Property, Plant and Equipment

Title deeds of Immovable Property not held in name of the Company:

All the Title Deeds of Immovable Properties are held in the name of the Company.

c. The Company does not have any Benami property, where any proceeding has been initiated or pending against
the Company for holding any Benami property.

d. The Company has not availed any fund based Cash Credit limit or any non-fund based limit against stock and
debtors at any time during the year

e. The Company has not been declared as a willful defaulter by any lender who has powers to declare a company
as a willful defaulter at any time during the financial year or after the end of reporting period but before the date
when the financial statements are approved.

f. The Company does not have any transactions with struck-off companies.

g. The Company does not have any charges or satisfaction which is yet to be registered with the Registrar of
Companies (ROC) beyond the statutory period.

h. The Company has compiled with the number of layers prescribed under clause (87) of section 2 of the Companies
Act 2013 read with Companies (Restrictions on number of Layers) Rules, 2017.

i. The company has advanced or loaned or invested funds to any other person(s) or entity(is), including foreign
entities(intermediaries), with the understanding that the intermediary shall;

• Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or
on behalf of the Company (Ultimate Beneficiaries), or

• Provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

j. The Company has not received any funds from any person(s) or entity(ies), including foreign entities (Funding
Party) with the understanding (whether recorded in writing or otherwise) that the Company shall;

• Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or
on behalf of the Company (Ultimate Beneficiaries), or

• Provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

k. The Company does not have any transactions which is not recorded in the books of accounts but has been
surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (
such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

l. The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

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Mar 31, 2015

A. Accounting Convention

The Financial Statements have been prepared to comply in all material respects with the mandatory Accounting Standards issued by the Institute of Chartered Accountants of India and the relevant provisions of the Companies Act, 2013. The Accounting statements have been prepared under the historical cost convention on an accrual basis. The Accounting policies have been consistently applied by the Company are consistent with those used in the previous year.

B. Fixed Assets

Fixed Assets are stated at their original cost including freight, duties, taxes and other incidental expenses relating to the acquisition and installation and are net of credit under the Excise Modvat Scheme, wherever applicable. The Company capitalizes all costs relating to the acquisition and installation of fixed assets.

C. Depreciation

Depreciation on fixed assets for the year is computed on the Straight Line Method (SLM) as per the method prescribed in Schedule II to the Companies Act, 2013.

D. Borrowing Cost

Borrowing costs that are attributable to the acquisition of qualifying assets are capitalized as part of cost of such assets till such time assets become ready for their intended use. All other Borrowing costs are recognized as expenses in the year in which they are incurred.

E. Inventories Land and Building

Direct expenses like cost at site, material used for project construction, costs for moving the plant and machinery to the site and general expenses incurred specifically for the respective project and construction overheads are taken as the total cost of the respective project.

(i) Work in progress, in the case of Real Estate Development projects, represents the cost incurred in respect of unsold area of the incomplete Real Estate Development projects.

(ii) Stock of Plots and apartments, classified as stock in trade, are valued at cost or net realizable value whichever is lower.

(iii) Building material purchased specifically for the projects are taken as consumed as and when received.

F. Revenue Recognition Sale of Goods:

Sales include excise duty, where applicable and represent invoice value of goods sold as reduced by rebates and discounts.

Sale of Flats:

Sale of flat purchased from other developers is recognized on execution of transfer deed in favour of the buyer.

In respect of development projects undertaken by the company, revenue is recognised when the significant risks and rewards of ownership of the unit in real estate have passed to the buyer and the revenue is recognized to the extent that it is probable that the economic benefit s will flow to the Company and the revenue can be reliably measured. Construction Contracts:

Revenue from each Real Estate Development Project is recognized:

(i) On the basis of "Percentage Completion Method"

(ii) The percentage completion method is applied on a cumulative basis in each accounting period to the current estimates of contract revenue and contract costs

(iii) When the stage of completion of each project reaches a significant level, which is estimated to be at least 25% of the total estimated cost of project

(iv) When no significant uncertainty exists regarding the amount of the consideration from sale, which is estimated on collection of at least 25% of sale consideration.

Real Estate Development Project:

The Company follows completed project method of accounting ("Project Completion Method of Accounting"). Allocable expenses incurred during the year are debited to work-in-progress account. The income is accounted for as and when the projects get completed or substantially completed and then revenue is recognized to the extent that it is probable that the economic benefits s will flow to the Company and the revenue can be reliably measured.

Royalty:

Revenue is recognized on an accrual basis in accordance with the terms of the relevant agreement.

Interest:

Interest on fixed deposits is recognized on accrual basis on a time proportion basis taking in to account the amount outstanding and the rate applicable.

Dividend:

Revenue is recognized when the right to receive the income is established.

Rent:

Revenue is recognized on an accrual basis in accordance with the terms of the relevant agreement.

G. Impairment of Assets

If the carrying amount of fixed assets exceeds the recoverable amount on the reporting date, the carrying amount is reduced to the recoverable amount. The recoverable amount is measured as the higher of the net selling price and the value in use determined by the present value of estimated future cash flow.

H. Preliminary & Preoperative Expenses

Preliminary Expenses are being amortized over a period of five years.

I. Provision for Taxation

Current Income Tax is measured at the amount expected to be paid to the tax authorities in Accordance with the Income Tax Act.

J. Foreign Currency Translations

Translations in Foreign Currency are recorded by the applying the exchange rate at the date of transaction. Monetary items denominated in Foreign Currency remaining unsettled at the end of the year, are translated at the closing rates, prevailing on the Balance Sheet date. Exchange difference arising as a result of the above are recognized as income are expenses in the Profit and Loss Account except for exchange difference arising on a monetary item which, in substance, from part of the company's net Investment in a non-integral foreign operation which is accumulated in a foreign currency translation reserve until the disposal of the net investment.

K. Investments

Current investments are valued at lower of cost and fair market value, and long-term investments are stated at cost in accordance with Accounting Standard - 13 on "Accounting for Investments" issued by the Institute of Chartered Accountants of India. Provision for diminution in the value of long-term investments shall be made only if such a decline is other than temporary.

L. Deferred Tax

Deferred income taxes 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. Deferred tax assets are recognized only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which deferred tax assets can be realized. Deferred tax assets are recognized on carry forward or unabsorbed depreciation and tax losses only if there is virtual certainty that such deferred tax assets can be realized against future taxable profits. Unrecognized Deferred Tax Assets of earlier years are re-assessed and recognized to the extent that it has become reasonably certain that future taxable income will be available against such deferred tax assets can be realized.

M. Earnings per Share

The basic earnings per share are computed by dividing the net profit or loss attributable the equity shareholders for the period by the weighted average number of equity shares outstanding during the reporting period. The number of shares used in computing diluted earnings per share comprises the weighted average number of shares considered for deriving basic earnings per share and also the weighted average number of equity shares, which may be issued on the conversion of all dilutive potential shares, unless the results would be anti dilutive.

N. Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

O. Impairment of Assets

As per Accounting Standard-28 issued by the Institute of Chartered Accountants of India, the company assesses at each Balance Sheet date whether there is any indication of impairment of carrying amount of the company's Assets. The recoverable amounts of such assets are estimated. If any indication exists, and impairment loss is recognized wherever the carrying amount of the assets exceeds its recoverable amount.

P. Provisions

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

Q. Retirement Benefits Gratuity

Provision of Gratuity is created for employees who have completed continuous five years' of services at the rate of 15 days salary for every completed year of service based on the salary drawn during the last month of the financial year. Leave Encashment

Unused leave are paid to the employees at the end of year and are not accumulated.

Provident Fund

Company's contribution to provident fund is charged to profit and loss account.

R. Use of Estimates

The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known/materialized.

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Mar 31, 2014

(a) Basis of Preparation

Financial statements are prepared under the historical cost convention in consonance and accordance with applicable accounting standards, accepted accounting principles and relevant presentational requirements of The Companies Act, 1956. Company follows accrual basis of accounting in accordance with the provisions of The companies Act, 1956.

(b) Fixed Assets

Fixed assets are recorded at cost. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use. Physical verifi cation of the assets is carried out once in three years.

(c) Depreciation

Depreciation on Fixed Assets has been provided on written down method at rates and method as per Income-tax Rules, 1962. No depreciation is charged on fi xed assets sold during the year.

(d) Investments

Current investments are valued at the lower of cost and fair value and long-term investments are stated at cost in accordance with Accounting Standard – 13 on "Accounting for Investments" issued by the Institute of Chartered Accountants of India. Provision for diminution in the value of long-term investments is made only if such a decline is other than temporary.

(e) Inventories

Inventory of Land and Building and trading goods is valued at lower of cost and net realizable value. Cost of Land and Building includes acquisition cost of land and cost of super structure built thereupon. Cost of trading goods includes acquisition cost, taxes, duties and freight. Cost is computed on FIFO basis of costing.

(f) Preliminary Expenses and Share Issue Expenses

Preliminary expenses and Share issue expenses are to be written off in ten years in equal installment from the year in which commercial production commences.

(g) Retirement Benefi ts Gratuity

Provision of Gratuity is created for employees who have completed continuous fi ve years'' of services at the rate of 15 days salary for every completed year of service based on the salary drawn during the last month of the fi nancial year.

Leave Encashment

Unused leave are paid to the employees at the end of year and are not accumulated.

Provident Fund

Company''s contribution to provident fund is charged to profi t and loss account.

(h) Impairment of Assets

If the carrying amount of fi xed assets exceeds the recoverable amount on the reporting date, the carrying amount is reduced to the recoverable amount. The recoverable amount is measured as the higher of the net selling price and the value in use determined by the present value of estimated future cash fl ow.

(i) Accounting for Taxes on Income

Provision for current Income tax is made after taking in to consideration the benefi ts admissible under the provisions of the Income Tax Act, 1961.

Deferred tax is recognized, on timing differences, being the difference between taxable and accounting income that originates in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets in respect of unabsorbed depreciation and carry forward of losses are recognized if there is virtual certainty that there will be suffi cient future taxable income available to realize such losses.

(j) Foreign Currency Transactions Initial Recognition

Foreign currency transactions are recorded in the reporting currency, by applying the exchange rate between the reporting currency and the foreign currency to the foreign currency amount at the date of the transaction.

Conversion

Foreign currency monetary items are reported using the closing rate. Gains and losses, if any, at the year-end in respect of monetary assets and monetary liabilities not covered by the forward contracts are recognized in the profi t and loss account.

Exchange Difference

Exchange difference arising on the settlement of monetary items at rate different from those at which they were initially recorded during the year, are recognized as income or as expense in the year in which they arise.

(k) Revenue Recognition

Revenue is recognized to the extent that it is probable that the economic benefi ts will fl ow to the company and the revenue can be reliably measured.

Sale of Goods:

Sales are recognized net of sales tax charged, and rebates/discounts allowed to customers.

Sale of Services:

Revenue from services is recognized on completion of services.

Interest:

Interest on fi xed deposits is recognized on accrual basis on a time proportion basis taking in to account the amount outstanding and the rate applicable.

Dividend:

Revenue is recognized when the right to receive the income is established.

Sale of Flats:

Sale of fl at purchased from other developers is recognized on execution of transfer deed in favour of the buyer.

Real Estate Development Project:

Revenue from each Real Estate Development Project is recognized:

(i) On the basis of "Percentage Completion Method"

(ii) The percentage completion method is applied on a cumulative basis in each accounting period to the current estimates of contract revenue and contract costs

(iii) When the stage of completion of each project reaches a signifi cant level, which is estimated to be at least 25% of the total estimated cost of project

(iv) When no signifi cant uncertainty exists regarding the amount of the consideration from sale, which is estimated on collection of at least 25% of sale consideration.

Rent:

Revenue is recognized on an accrual basis in accordance with the terms of the relevant agreement.

(l) Use of Estimates

The preparation of fi nancial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of fi nancial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known/materialized.

(m) Earnings per Share

The basic earnings per share are computed by dividing the net profi t or loss attributable the equity shareholders for the period by the weighted average number of equity shares outstanding during the reporting period. The number of shares used in computing diluted earning per share comprises the weighted average number of shares considered for deriving basic earning per share and also the weighted average number of equity shares, which may be issued on the conversion of all dilutive potential shares, unless the results would be anti dilutive.

---

Mar 31, 2013

(a) Basis of Preparation

Financial statements are prepared under the historical cost convention in consonance and accordance with applicable accounting standards, accepted accounting principles and relevant presentational requirements of The Companies Act, 1956. Company follows accrual basis of accounting in accordance with the provisions of The companies Act, 1956.

(b) Fixed Assets

Fixed assets are recorded at cost. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use. Physical verifi cation of the assets is carried out once in three years.

(c) Depreciation

Depreciation on Fixed Assets has been provided on written down method at rates and method as per Income-tax Rules, 1962. No depreciation is charged on fi xed assets sold during the year.

(d) Investments

Current investments are valued at the lower of cost and fair value and long-term investments are stated at cost in accordance with Accounting Standard - 13 on "Accounting for Investments” issued by the Institute of Chartered Accountants of India. Provision for diminution in the value of long-term investments is made only if such a decline is other than temporary.

(e) Inventories

Inventory of Land and Building and trading goods is valued at lower of cost and net realizable value. Cost of Land and Building includes acquisition cost of land and cost of super structure built thereupon. Cost of trading goods includes acquisition cost, taxes, duties and freight. Cost is computed on FIFO basis of costing.

(f) Preliminary Expenses and Share Issue Expenses

Preliminary expenses and Share issue expenses are to be written off in ten years in equal installment from the year in which commercial production commences.

(g) Retirement Benefi ts Gratuity

Provision of Gratuity is created for employees who have completed continuous fi ve years'' of services at the rate of 15 days salary for every completed year of service based on the salary drawn during the last month of the fi nancial year.

Leave Encashment

Unused leave are paid to the employees at the end of year and are not accumulated.

Provident Fund

Company''s contribution to provident fund is charged to profi t and loss account.

(h) Impairment of Assets

If the carrying amount of fi xed assets exceeds the recoverable amount on the reporting date, the carrying amount is reduced to the recoverable amount. The recoverable amount is measured as the higher of the net selling price and the value in use determined by the present value of estimated future cash fl ow.

(i) Accounting for Taxes on Income

Provision for current Income tax is made after taking in to consideration the benefi ts admissible under the provisions of the Income Tax Act, 1961.

Deferred tax is recognized, on timing differences, being the difference between taxable and accounting income that originates in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets in respect of unabsorbed depreciation and carry forward of losses are recognized if there is virtual certainty that there will be suffi cient future taxable income available to realize such losses.

(j) Foreign Currency Transactions Initial Recognition

Foreign currency transactions are recorded in the reporting currency, by applying the exchange rate between the reporting currency and the foreign currency to the foreign currency amount at the date of the transaction.

Conversion

Foreign currency monetary items are reported using the closing rate. Gains and losses, if any, at the year-end in respect of monetary assets and monetary liabilities not covered by the forward contracts are recognized in the profi t and loss account.

Exchange Difference

Exchange difference arising on the settlement of monetary items at rate different from those at which they were initially recorded during the year, are recognized as income or as expense in the year in which they arise.

(k) Revenue Recognition

Revenue is recognized to the extent that it is probable that the economic benefi ts will fl ow to the company and the revenue can be reliably measured.

Sale of Goods:

Sales are recognized net of sales tax charged, and rebates/discounts allowed to customers.

Sale of Services:

Revenue from services is recognized on completion of services.

Interest:

Interest on fi xed deposits is recognized on accrual basis on a time proportion basis taking in to account the amount outstanding and the rate applicable.

Dividend:

Revenue is recognized when the right to receive the income is established.

Sale of Flats:

Sale of fl at purchased from other developers is recognized on execution of transfer deed in favour of the buyer.

Real Estate Development Project:

Revenue from each Real Estate Development Project is recognized:

(i) On the basis of "Percentage Completion Method”

(ii) The percentage completion method is applied on a cumulative basis in each accounting period to the current estimates of contract revenue and contract costs

(iii) When the stage of completion of each project reaches a signifi cant level, which is estimated to be at least 25% of the total estimated cost of project

(iv) When no signifi cant uncertainty exists regarding the amount of the consideration from sale, which is estimated on collection of at least 25% of sale consideration.

Rent:

Revenue is recognized on an accrual basis in accordance with the terms of the relevant agreement.

(l) Use of Estimates

The preparation of fi nancial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of fi nancial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known/materialized.

(m) Earnings per Share

The basic earnings per share are computed by dividing the net profi t or loss attributable the equity shareholders for the period by the weighted average number of equity shares outstanding during the reporting period. The number of shares used in computing diluted earning per share comprises the weighted average number of shares considered for deriving basic earning per share and also the weighted average number of equity shares, which may be issued on the conversion of all dilutive potential shares, unless the results would be anti dilutive.

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Mar 31, 2012

(a) Basis of Preparation

Financial statements are prepared under the historical cost convention in consonance and accordance with applicable accounting standards, accepted accounting principles and relevant presentational requirements of The Companies Act, 1956. Company follows accrual basis of accounting in accordance with the provisions of The companies Act, 1956.

(b) Fixed Assets

Fixed assets are recorded at cost. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use. Physical verification of the assets is carried out once in three years.

(c) Depreciation

Depreciation on Fixed Assets has been provided on written down method at rates and method as per Income-tax Rules, 1962. No depreciation is charged on fixed assets sold during the year.

(d) Investments

Current investments are valued at the lower of cost and fair value and long-term investments are stated at cost in accordance with Accounting Standard - 13 on "Accounting for Investments" issued by the Institute of Chartered Accountants of India. Provision for diminution in the value of long-term investments is made only if such a decline is other than temporary.

(e) Inventories

Inventory of Land and Building and trading goods is valued at lower of cost and net realizable value. Cost of Land and Building includes acquisition cost of land and cost of super structure built thereupon. Cost of trading goods includes acquisition cost, taxes, duties and freight. Cost is computed on FIFO basis of costing.

(f) Preliminary Expenses and Share Issue Expenses

Preliminary expenses and Share issue expenses are to be written off in ten years in equal installment from the year in which commercial production commences.

(g) Retirement Benefits Gratuity

Provision of Gratuity is created for employees who have completed continuous five years' of services at the rate of 15 days salary for every completed year of service based on the salary drawn during the last month of the financial year.

Leave Encashment

Unused leave are paid to the employees at the end of year and are not accumulated.

Provident Fund

Company's contribution to provident fund is charged to profit and loss account.

(h) Impairment of Assets

If the carrying amount of fixed assets exceeds the recoverable amount on the reporting date, the carrying amount is reduced to the recoverable amount. The recoverable amount is measured as the higher of the net selling price and the value in use determined by the present value of estimated future cash flow.

(i) Accounting for Taxes on Income

Provision for current Income tax is made after taking in to consideration the benefits admissible under the provisions of the Income Tax Act, 1961.

Deferred tax is recognized, on timing differences, being the difference between taxable and accounting income that originates in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets in respect of unabsorbed depreciation and carry forward of losses are recognized if there is virtual certainty that there will be sufficient future taxable income available to realize such losses.

(j) Foreign Currency Transactions

Initial Recognition

Foreign currency transactions are recorded in the reporting currency, by applying the exchange rate between the reporting currency and the foreign currency to the foreign currency amount at the date of the transaction.

Conversion

Foreign currency monetary items are reported using the closing rate. Gains and losses, if any, at the year-end in respect of monetary assets and monetary liabilities not covered by the forward contracts are recognized in the profit and loss account.

Exchange Difference

Exchange difference arising on the settlement of monetary items at rate different from those at which they were initially recorded during the year, are recognized as income or as expense in the year in which they arise.

(k) Revenue Recognition

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured.

Sale of Goods:

Sales are recognized net of sales tax charged, and rebates/discounts allowed to customers.

Sale of Services:

Revenue from services is recognized on completion of services.

Interest:

Interest on fixed deposits is recognized on accrual basis on a time proportion basis taking in to account the amount outstanding and the rate applicable.

Dividend:

Revenue is recognized when the right to receive the income is established.

Sale of Flats:

Sale of flat purchased from other developers is recognized on execution of transfer deed in favour of the buyer.

Real Estate Development Project:

Revenue from each Real Estate Development Project is recognized:

(i) On the basis of "Percentage Completion Method"

(ii) The percentage completion method is applied on a cumulative basis in each accounting period to the current estimates of contract revenue and contract costs

(iii) When the stage of completion of each project reaches a significant level, which is estimated to be at least 25% of the total estimated cost of project

(iv) When no significant uncertainty exists regarding the amount of the consideration from sale, which is estimated on collection of at least 25% of sale consideration.

Rent:

Revenue is recognized on an accrual basis in accordance with the terms of the relevant agreement.

(l) Use of Estimates

The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known/materialized.

(m) Earnings per Share

The basic earnings per share are computed by dividing the net profit or loss attributable the equity shareholders for the period by the weighted average number of equity shares outstanding during the reporting period. The number of shares used in computing diluted earning per share comprises the weighted average number of shares considered for deriving basic earning per share and also the weighted average number of equity shares, which may be issued on the conversion of all dilutive potential shares, unless the results would be anti dilutive.

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Mar 31, 2011

1. NATURE OF OPERATION

RTCL Limited (The "Company") is mainly engaged in Real Estate including renting activities.

2. SIGNIFICANT ACCOUNTING POLICIES AND NOTES ON ACCOUNTS A. SIGNIFICANT ACCOUNTING POLICIES

(a) Basis of Preparation

Financial statements are prepared under the historical cost convention in consonance and accordance with applicable accounting standards, accepted accounting principles and relevant presentational requirements of The Companies Act, 1956. Company follows accrual basis of accounting in accordance with the provisions of The companies Act, 1956.

(b) Fixed Assets

Fixed assets are recorded at cost. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use. Physical verification of the assets is carried out once in three years.

(c) Depreciation

Depreciation on Fixed Assets has been provided on written down method at rates and method as per Income-tax Rules, 1962. No depreciation is charged on fixed assets sold during the year.

(d) Investments

Current investments are valued at the lower of cost and fair value and long- term investments are stated at cost in accordance with Accounting Standard - 13 on "Accounting for Investments" issued by the Institute of Chartered Accountants of India. Provision for diminution in the value of long-term investments is made only if such a decline is other than temporary.

(e) Inventories

Inventory of Land and Building and trading goods is valued at lower of cost and net realizable value. Cost of Land and Building includes acquisition cost of land and cost of super structure built thereupon. Cost of trading goods includes acquisition cost, taxes, duties and freight. Cost is computed on FIFO basis of costing.

(f) Preliminary Expenses and Share Issue Expenses

Preliminary expenses and Share issue expenses are to be written off in ten years in equal installment from the year in which commercial production commences.

(g) Retirement Benefits

Gratuity

Provision of Gratuity is created for employees who have completed continuous five years' of services at the rate of 15 days salary for every completed year of service based on the salary drawn during the last month of the financial year.

Leave Encashment

Unused leave are paid to the employees at the end of year and are not accumulated.

Provident Fund

Company's contribution to provident fund is charged to profit and loss account.

(h) Impairment of Assets

If the carrying amount of fixed assets exceeds the recoverable amount on the reporting date, the carrying amount is reduced to the recoverable amount. The recoverable amount is measured as the higher of the net selling price and the value in use determined by the present value of estimated future cash flow.

(i) Accounting for Taxes on Income

Provision for current Income tax is made after taking in to consideration the benefits admissible under the provisions of the Income Tax Act, 1961.

Deferred tax is recognized, on timing differences, being the difference between taxable and accounting income that originates in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets in respect of unabsorbed depreciation and carry forward of losses are recognized if there is virtual certainty that there will be sufficient future taxable income available to realize such losses.

(j) Foreign Currency Transactions

Initial Recognition

Foreign currency transactions are recorded in the reporting currency, by applying the exchange rate between the report- ing currency and the foreign currency to the foreign currency amount at the date of the transaction.

Conversion

Foreign currency monetary items are reported using the closing rate. Gains and losses, if any, at the year-end in respect of monetary assets and monetary liabilities not covered by the forward contracts are recognized in the profit and loss account.

Exchange Difference

Exchange difference arising on the settlement of monetary items at rate different from those at which they were initially recorded during the year, are recognized as income or as expense in the year in which they arise.

(k) Revenue Recognition

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured.

Sale of Goods:

Sales are recognized net of sales tax charged, and rebates/discounts allowed to customers.

Sale of Services:

Revenue from services is recognized on completion of services.

Interest:

Interest on fixed deposits is recognized on accrual basis on a time proportion basis taking in to account the amount outstanding and the rate applicable.

Dividend:

Revenue is recognized when the right to receive the income is established.

Sale of Flats:

Sale of flat purchased from other developers is recognized on execution of transfer deed in favour of the buyer.

Real Estate Development Project'

Revenue from each Real Estate Development Project is recognized:

(i) On the basis of "Percentage Completion Method"

(ii) The percentage completion method is applied on a cumulative basis in each accounting period to the current esti- mates of contract revenue and contract costs

(iii) When the stage of completion of each project reaches a significant level, which is estimated to be at least 25% of the total estimated cost of project

(iv) When no significant uncertainty exists regarding the amount of the consideration from sale, which is estimated on collection of at least 25% of sale consideration.

Rent:

Revenue is recognized on an accrual basis in accordance with the terms of the relevant agreement.

(l) Use of Estimates

The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known/materialized.

(m) Earnings per Share

The basic earnings per share are computed by dividing the net profit or loss attributable the equity shareholders for the period by the weighted average number of equity shares outstanding during the reporting period. The number of shares used in computing diluted earning per share comprises the weighted average number of shares considered for deriving basic earning per share and also the weighted average number of equity shares, which may be issued on the conversion of all dilutive potential shares, unless the results would be anti dilutive.

---

Mar 31, 2010

(a) Basis of Preparation

Financial statements are prepared under the historical cost convention In consonance and accordance with applicable accounting standards, accepted accounting principles and relevant presentational requirements of The Companies Act 1956. Company follows accrual basis of accounting in accordance with the provisions of The companies Act, 1956.

(b) Fixed Assets

Fixed assets are recorded at cost. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use. Physical verification of the assets is carried out once in three years.

(c) Depreciation

Depreciation on Fixed Assets has been provided on written down method at rates and method as per Income-tax Rules, 1962. No depreciation is charged on fixed assets sold during the year.

(d) Investments

Current investments are valued at the lower of cost and fair value and long-term investments are stated at cost in accordance with Accounting Standard - 13 on "Accounting for Investments" issued by the Institute of Chartered Accountants of India. Provision for diminution In the value of long-term investments is made only If such a decline is other than temporary.

(e) Inventories

Inventory of Land and Building and trading goods is valued at lower of cost and net realizable value. Cost of Land and Building includes acquisition cost of land and cost of super structure built thereupon. Cost of trading goods includes acquisition cost, taxes, duties and freight. Cost is computed on FIFO basis of costing.

(f) Preliminary Expenses and Share Issue Expenses

Preliminary expenses and Share issue expenses are to be written off in ten years in equal installment from the year in which commercial production commences.

(g) Retirement Benefits

Gratuity

Provision of Gratuity is created for employees who have completed continuous five years of services at the rate of 15 days salary for every completed year of service based on the salary drawn during the last month of the financial year.

Leave Encashment

Unused leave are paid to the employees at the end of year and are not accumulated.

Provident Fund

Companys contribution to provident fund Is charged to profit and loss account

(h) Impairment of Assets

If the carrying amount of fixed assets exceeds the recoverable amount on the reporting date, the carrying amount is reduced to the recoverable amount The recoverable amount is measured as the higher of the net selling price and the value in use determined by the present value of estimated future cashflow.

(i) Accounting for Taxes on Income

Provision for current Income tax is made after taking in to consideration the benefits admissible under the provisions of the Income Tax Act 1961.

Deferred tax is recognized, on timing differences, being the difference between taxable and accounting income that originates in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets in respect of unabsorbed depreciation and rjarry forward of losses are recognized if there is virtual certainty that there will be suf- ficient future taxable income available to realize such losses.

(j) Foreign Currency Transactions

Initial Recognition

Foreign cunency transactions are recorded in the reporting currency, by applying the exchange rate between the report- ing currency and the foreign currency to the foreign currency amount at the date of the transaction.

Conversion

Foreign currency monetary items are reported using the closing rate. Gains and losses, if any, at the year-end in respect of monetary assets and monetary liabilities not covered by the forward contracts are recognized in the profit and loss account

Exchange Difference

Exchange difference arising on the settlement of monetary items at rate different from those at which they were initially recorded during the year are recognized as income or as expense in the year in which they arise.

(k) Revenue Recognition

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured.

Sale of Goods:

Sales are recognized net of sales tax charged, and rebates/discounts allowed to customers.

Sale of Services:

Revenue from services is recognized on completion of services.

Interest:

Interest on fixed deposits is recognized on accrual basis on a time proportion basis taking in to account the amount outstanding and the rate applicable.

Dividend:

Revenue is recognized when the right to receive the income is established. Sale of Flats Sale of flat purchased from other developers is recognized on execution of transfer deed in favour of the buyer.

Real Estate Development Project:

Revenue from each Real Estate Development Project is recognized:

(i) On the basis of "Percentage Completion Method"


(iii) When the stage of completion of each project reaches a significant level, which is estimated to be at least 25% of the total estimated cost of project

(iv) When no significant uncertainty exists regarding the amount of the consideration from sale: which is estimated on collection of at least 25% of sale consideration.

Rent:

Revenue is recognized on an accrual basis in accordance with the terms of the relevant agreement.

v. Use of Estimates

The preparation of financiaI statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known/materialized.

(J) Earnings per Share

The basic earnings per share are computed by dividing the net profit or loss attributable the equity share holders for the period by the weighted average number of equity shares outstanding during the reporting period. The number of shares used in computing diluted earning per share comprises the weighted average number of shares considered for deriving basic earning per share and also the weighted average number of equity shares, which may be issued on the conversion of all dilutive potential shares, unless the results would be anti dilutive.