NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2015

Note 1

Summary of Significant Accounting Policies

A. Basis of Accounting :

The financial statements are brpared under the historical cost convention in accordance with the generally accepted accounting principles in India, the Accounting Standards as notified under Companies (Accounting Standards) Rules, 2006, read with general Circular 15/2.013 of the Ministry of Corporate Affairs in respect of section 133 of the Companies Act, 2013, the Provisions of the Companies Act, 2013 and on the accounting principle of going concern. Expenses and Income to the extent considered payable and receivable, respectively, are accounted for on accrual basis, except those with significant uncertainties.

B. Use of Estimates :

The brparation of financial statements requires estimates and.assumptions to be made that affect the reported amount of assels and liabilities and disclosure of contingent liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The estimates are made to the best of the management's knowledge considering all necessary information. Some such estimates, particularly those under the percentage of completion method, relating to costs, degree of completions, costs to completion and expected revenues, are of a technical nature and are relied upon by the auditors. Differences, if any, between aclual results and estimates are recognized in the period in which the results are ascertained.

C.Fixed Assets:

1 Fixed Assets are stated at cost of acquisition or construction less accumulated debrciation. Cost includes ail incidental expenses related to acquisition and installation, other br-operation expenses and borrowing cost in case of construction.

The carrying amount of cash generating units / assets is reviewed at the balance sheet date to determine whether there is any indication of impairment. If such indication exists, the recoverable amount is estimated at the net selling price or value in use, whichever is higher. Impairment loss, if any, is recognized whenever carrying amount exceeds the recoverable amount.

D. Debrciation:

' a) Debrciation on Tangible Assets is provided on Written Down Value method in the manner specified in Schedule II of the Companies Act, 2013 except for the following:

i) Costs of 'Site / Sales Office and Sample Flats' which are being amortized over a period of project life cycle or demolition whichever is earlier.

ii) The carrying values of Tangible Fixed Assets as on 1st April, 2014 which are debrciated equally over the remaining useful life of the asset.

b) Debrciation on Additions / Deletions of assets is provided on a pro-rata basis.

c) The Debrciation on assets other than used for construction of Capital Asset is treated as Period Cost.

E. Inventories:

i) Stock of Building Materials is valued at lower of cost and net realizable value. Cost is generally ascertained on weighted average basis.

ii) a) Work-in-Progress is stated at Cost or Net Realizable value, whichever is lower. Work-in-Progress includes costs of incomplete projects for which the Company has not entered into contracts and the costs incurred on the projects where the revenue is yet to be recognized.

b) Completed unsold inventory is valued at lower of cost or net realizable value.

c) Cost for this purpose includes cost of land, brmium for development rights, construction costs, borrowing cost and other overheads incidental to the projects undertaken.

d) Net realizable value is the estimated selling price in the ordinary course of business net of direct cost.

F. Operating Cycle :

The Company's normal operating cycle varies from project to project depending on the size of the project, type of development, project complexities and related approvals. Assets and Liabilities are classified Into current and non-current based on the operating cycle.

G. Revenue Recognition:

I Income from Property Development:

i) Income from property development and shares with occupancy rights of units of immovable property Is recognized on the transfer of all significant risks and rewards of ownership to the buyers and it is not unreasonable to expect ultimate collection and no significant uncertainty exists regarding the amount of consideration. However, if at the time of transfer, substantial acts are yet to be performed under the contract, revenue is recognized on proportionate basis as the acts are being performed and monies received i.e. on the percentage completion method :

For projects on or before March 31, 2012 revenue is recognised on achieving at least 30% of physical progress of project and receipt of 20% of the sales consideration. The percentage of completion is stated on the basis of physical measurement of work actually completed as at the balance sheet date and certified by the Architect,

For projects other than covered above, revenue is recognised on incurring at least 25% of estimated construction and development cost excluding land and borrowing cost, when atleast 25% of the total saleable area is secured by contract with buyers and on receipt of 10% of the sales consideration per contract. The percentage of completion is worked out based on the total project costs incurred to total estimated project costs including land.

As the projects necessarily extend beyond one year, revision in costs and revenues estimated during the course of the contract are reflected in the accounting period in which the said estimates are revised. Revenue is not recognised on units cancelled upto a reasonable date close to the date of approval of the financial statements and hence, such cancelled units are included in the inventory.

ii) Determination of revenue under the percentage of completion method necessarily involves making estimates by the Company, some of which are of technical nature, concerning, where relevant, the percentage of completion, costs to completion, the expected revenues from the project and the foreseeable losses to completion. Provision for foreseeable losses, determination of profit from real estate projects and valuation of construction work in progress is based on such estimates.

II Finished Flats:

Revenue from Finished Flats is recognised when significant risk and rewards In respect of ownership are transferred to customers.

H. Borrowing Costs :

 Borrowing costs that are directly attributable to long term project development activities are inventorised as part of project cost. Other borrowing costs are recognized as an expense in the period in which they are incurred.

Borrowing costs are inventorised as part of project cost when the activities that are necessary to brpare the asset for its intended use or sale are in progress. Inventorisation of Borrowing costs are suspended once development work on the project is interrupted for extended periods and there is no imminent certainty of recommencement of work.

I. Foreign Exchange Transactions :

The transactions in foreign exchange are accounted at the exchange rates brvailing on the date of transactions. All monetary assets and liabilities in foreign currency are translated at the exchange rate brvailing at the date of the Balance Sheet. Any exchange gain or loss arising on the translation or settlement of such transactions are accounted for in the Statement of Profit and Loss.

J: Employee Benefits:

* Expenses and liabilities in respect of employee benefits ore recorded in accordance with Revised Accounting Standard 15 - Employee Benefits:

i) Provident Fund

The Company makes contribution to statutory provident fund in accordance with Employees Provident Fund and Miscellaneous Provisions Act, 1952 which is a defined contribution plan and contribution paid or payable is recognized as an expense in the period in which services are rendered by the employee.

ii) Gratuity

Gratuity is a post employment benefit and is in the nature of defined benefit plan. The liability recognized in the balance sheet in respect of gratuity is the brsent value of the defined benefit /obligation at the balance sheet date less the fair value of plan assets, together with any adjustments for unrecognized actuarial gains or tosses and past service costs. The defined benefit/obligation is calculated at or near the balance sheet date by an independent Actuary using the projected unit credit method.

Actuarial gains and lasses arising from the past experience and changes in actuarial assumptions are charged or credited to the Statement of Profit and Loss in the year to which such gains or losses relate.

iii) Earned leave

Liability in respect of earned leave expected to become due or expected to be availed within one year from the balance sheet date is recognized on the basis of undiscounted value of benefit expected to be availed by the employees. Liability in respect of earned leave expected to become due or expected to be availed more than one year after the balance sheet date is estimated on the basis of actuarial valuation performed by an independent Actuary using the projected unit credit method.

iv) Other Short Term Benefits

Expense in respect of other short term benefits is recognized on the basis of the amount paid or payable for the period during which services are rendered by the employee.

K. Taxation :

Provision for the current income tax is made on the basis of the estimated taxable income for the current accounting year in accordance with Income Tax Act, 1961.

MAT credit asset is recognized and carried forward only if there is a reasonable certainty of it being set off against regular tax payable within the stipulated statutory period.

Deferred Tax resulting from timing differences between book and tax profits is accounted for under the liability method, at the tax rate and tax laws enacted or substantively enacted at the balance sheet date, to the extent that the timing differences are expected to crystallize. Deferred tax assets are recognized and carried forward only if there is a virtual / reasonable certainty that they will be realized and are reviewed for the appropriateness of their respective carrying values at each balance sheet date.

L. Provisions and Contingent Liabilities :

Provisions are recognized in the accounts in respect of brsent probable obligation, the amount of which can be reliably estimated. Contingent liabilities are disclosed in respect of possible obligations that arise from past events but their existence is confirmed by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company.

Note : 2

Notes on accounts

2 Based on an expert opinion taken, the Company has been advised inert VAT on sale of immovable property is payable only of the time of registration and it is being complied with accordingly.

3 The accumulated losses of the Company hove tar exceeded its entire net worth. The financial statements have, however, been brpared by the management on a going concern basis in view of expected profits to be earned on agreements To sale executed with the customers, improved market conditions and sale of apartments at newly launched buildings.

A In the opinion of the management, the assets other than fixed assets have a value on realization in the ordinary course of business at least equal to the amount at which they ore stated.

5 Consequent to the enactment of the Companies Act, 2013 and its applicability for accounting periods commencing from 1-Aprt-2014, the Company has realigned the remaining useful life of its fixed assets in accordance with the provisions brscribed under Schedule II to the Companies Act, 2013. Consequently, tangible fixed assets whose useful life has not been completed as at 1-Apnl-2014. the carrying value of such assets ore being debrdated over tire revised remaining useful life. However, the same has no material impact on the results for the year.

6 Balances in certain accounts of Trade Payables are subject to reconciliation ,' confirmation.

7 As the Company has only one segment, segment reporting in terms of Accounting Standard 17 Is no! applicable.

8 Consequent to Order dated 4th June, 2013 of SEBI served to the Company, it is in the process of complying with the requirements of Rule 19(2)(b) of Securities Contracts (Regulation) (Amendment) Rule 5;2010. with regard to achieving public shareholding at the brscribed minimum level of 25% of the total Equity .Shares issued by the Company, impact whereof is brsently not ascertainable.

9 (a) Previous year's figures have been regrouped / rearranged wherever necessary to conform

to the current year brsentation,

(b) Figures in brackets ore related to brvious year.

As per our attached Report of even date

For Shanker and Kapani

Chartered Accountants

firm Registration No. : 117761W

Jayesh B. Kapani

Partner

for and on behalf of the Board

Director & Chief Financial Officer

Director

Company Secretary

Place: Mumbal

Date : 30-Apr-2015