NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st MARCH, 2015 1 SIGNIFICANT ACCOUNTING POLICIES & PRACTICES

1.1 ACCOUNTING CONCEPTS

(a) The financial statements are brpared under the historical cost convention on accrual basis of accounting as going concern and in accordance with the generally accepted accounting principles, accounting standards as specified under Section 133 of the Companies Act 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014, as applicable and the relevant provisions, rules and disclosure requirements of the Companies Act, 2013.

(b) USE OF ESTIMATES

In brparing the financial statements in conformity with the generally accepted accounting principles management is required to make estimates and assumptions that may affect the reported amount of assets and liabilities and disclosure of contingent liabilities as at the date of financial statements and the amount of revenue and expenses during the reported period. Actual results could differ from those estimates. Any revision to such estimates is recognised in the period the same is determined.

1.2 FIXED ASSETS, REVALUATION OF ASSETS AND DEbrCIATION

(a) Fixed assets are stated at their original cost of acquisition including cost of installation. MODVAT/ CENVAT availed, if any, are being deducted from the cost of respective asset.

(b) In case of Revaluation of Fixed Assets, the concerned asset is stated at revalued amount with the creation of Revaluation Reserve. Consequent debrciation on revalued portion of fixed assets based on the remaining useful life is being withdrawn from Revaluation reserve crediting the Profit & Loss.

(c) The Company has provided debrciation on its Fixed Assets in accordance with the provisions contained in Schedule II of the Companies Act, 2013 with reference to the useful life of various assets as brscribed in Part C of the said Schedule on straight line method. Assets whose useful lives have expired have been debrciated by retaining 5% residual value and have accordingly been charged in the Statement of Profit & Loss under Debrciation account.

1.3 IMPAIRMENT OF ASSETS

(a) The carrying amounts of fixed assets are reviewed at each balance sheet date, if there is any indication of impairment based on internal /external factors.

(b) An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount and the same is recognized as an expense in the statement of Profit & Loss and Carrying amount of the asset is reduced to recoverable amount.

(c) Reversal of impairment losses recognized in prior years is recorded when there is an indication that the impairment losses recognized for the assets no longer exists or have decreased.

1.4 REVENUE

(a) Revenue on transfer of leasehold land is recognised on the basis of transfer or relinquishment of rights along with the related risk and rewards to the buyer.

(b) Sales is recognized on dispatch of goods and includes excise duty but excludes sales tax, rebate & discount allowed, as applicable and is net of return/rejections.

(c) Interest on receivables are accounted only on the receipt or settlement of the same, which ever is earlier. Other interest income is recognized on a time proportion basis taking into account the amount outstanding and the applicable rate of interest

1.5 INVENTORIES

Valuation of stocks is done as mentioned below:

Raw Material and Stores & Spares :At lower of cost or Net realisable value

Work-in-Process :At cost of material included therein or net realizable value whichever is lower.

Finished Goods :At lower of cost or net realizable value

Leasehold Land held for sale :At lower of book value or net realizable value

Saleable Waste, Inventory Held for Disposal : At Net estimated realizable value and by products

(a) Cost is arrived at using monthly weighted average method.

(b) Cost of Finished Goods is inclusive of Excise Duty.

(c) Cost of Leasehold land is determined after including the expenditure incurred on the development thereof.

1.6 TAXATION

(a) Current Tax

Provision for Taxation is ascertained on the basis of assessable profits computed in accordance with the provisions of Income Tax Act, 1961. However, where the tax is computed in accordance with the provision of Section 115 JB of the Income Tax Act, 1961, as Minimum Alternate Tax (MAT), it is charged off to the Statement of Profit & Loss of the relevant year.

(b) Deferred Tax

Deferred Income Tax is recognized, subject to the consideration of prudence, as the tax effect of timing difference between the taxable income and accounting income computed for the current accounting year and reversal of earlier years' timing differences.

Deferred Tax assets are recognized and carried forward to the extent there is reasonable certainty, except arising from unabsorbed debrciation and carry forward losses which are recognized to the extent of deferred tax liabilities or there is virtual certainty, that sufficient future taxable income will be available against which such deferred tax assets can be realized.

1.7 Refunds of Taxes and Duties

Refund claims arising out of monies paid under protest or under appeals and charged to Revenue are accounted for at the time of receipt of orders or actual refunds whichever is earlier.

1.8 Contingent Liabilities

Disputed liabilities and claims against the company including claims raised by fiscal authorities (e.g. Sales Tax, Income Tax, Excise etc.) except frivolous claims for which no reliable estimate can be made of the amount of the obligation or which are remotely poised for crystallization are not provided for in accounts but disclosed in notes to accounts. However, brsent obligation as a result of past event with possibility of outflow of resources, when reliably estimable, is recognized in accounts.

2. Contingent Liabilities

2..1 Contingent Liabilities & Commitments (To the extent not provided for)

Claims against the Company not acknowledged as debts including excise, sales tax, Income Tax, Labour

Disputes, Legal and other Disputes Rs. 9,73,06,619/- Previous year Rs. 8,67,21,964/-).

2.2 Based on the confirmations from the suppliers, who have registered themselves under the Micro, Small and Medium Enterprises Development Act, 2006, received so far with the company, no balance is due to Micro & Small Enterprises as defined under the Micro, Small and Medium Enterprises Development Act, 2006 as on 31st March 2015. Further during the year no interest has been paid or payable under the terms of the said Act.

2.3 Balances appearing for few inoperative bank accounts, Trade Receivable and Payables, loans & advances and short term borrowing are subject to confirmation, reconciliation and adjustments, if any

2.4 The company has provided interest on loan taken from both the secured lenders in accordance with the Memorandum of Understanding signed with them. Similarly, interest recoverable on delayed receipt of sales consideration has been accounted for in accordance with agreed terms. Independent year end confirmations are awaited from the respective parties.

2.5 Company has started developing the Plots as per the approved plan of UPSIDC and accordingly has incurred an expenditure of Rs.27,64,194/- (Previous year Rs.19,70,444/- excluding write back of Rs. 31,37,718), which is allocated proportionately on the saleable area and unallocated portion made a part of stock in Trade.

2.6 Considering the Binding Sales Agreement and the provisions as specified in the Accounting Standard-22 "Accounting for taxes on Income" issued by the Institute of Chartered Accountants of India, the company has recognised Deferred Tax assets (DTA) based on the principle of virtual certainty.

2.7 The Company has claimed losses in the return filed for subsequent years till Assessment years 2014-15 and is of the view that majority of the same will be available for set off against future profits. In view of the losses and unabsorbed debrciation and based on the legal opinion obtained by the company, no provision for tax has been considered necessary in the accounts.

2.8 During the year, the Company has changed the method of providing debrciation on assets other than Buildings and Plant & Machinery from Written Down Value method to Straight Line Method. Further, useful lives of the assets have been changed in terms of Schedule II of the Companies Act 2013. Due to these changes, debrciation for the year has increased by Rs. 44,635/- with a corresponding reduction in net block and Reserves and Surplus.

2.9 The figures reported in financial statements have been rounded off to the nearest rupee.

2.10 Previous year figures have been regrouped, rearranged or reclassified where ever necessary.

As per our report of even date attached

For Sanmarks & Associates

Chartered Accountants

Firm Regn. No. 003343N

Sd/- S.K. Bansal

Partner

M No. - 082242

Sd/- (S. B. Singh) Director (DIN No. 03225016)

Sd/- (Promod Pandey) Chief Financial Officer

Sd/- (B. Mehrotra) Director

(DIN No. 03279399)

Sd/- (Bhawna Gupta) Company Secretary

Place : Faridabad

Date : 27th May, 2015