Note 1: Significant Accounting Policies

a) Basis of Accounting:

The Company maintains its accounts on accrual basis following the historical cost convention and in accordance with generally accepted accounting principles ["GAAP"], including the Accounting Standards notified under the relevant provisions of the Companies Act, 2013.

b) Use of Estimates:

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

c) Revenue Recognition:

All Income and expenditure are accounted for on accrual basis. In accordance with Accounting Standards (AS-9) on "Revenue Recognition" revenue from interest in case where ultimate collection is uncertain, is recognized in the year in which such interest is recovered.

d) Inventory:

Closing stock of construction material is valued at lower of cost or net realizable value.

e) Project Expenses:

Expenditure directly related to carrying out project activity are debited to the project account.

f) Fixed Assets:

Fixed Assets are stated at original cost less debrciation. Original cost includes all expenses incurred up to and incidental to the installation / acquisition.

g) Debrciation:

Debrciation on Fixed Assets is provided as per Straight Line Method and as per the life provided in Schedule II of the Companies Act, 2013

h ) Investments:

All the Investments are long term and carried at cost. However, provision is made for diminution in the value of investment other than of temporary nature. Current Investments are carried at lower of cost or fair value.

i) Employee Benefits:

i. Post-employment benefits under defined plans are recognized as an expense in the profit and loss account for the year in which the employee has rendered services. The expense is recognized at the brsent value of the amount payable towards contributions. The brsent value is determined using the market yields of government bonds, at the balance sheet date, at the discounting rate.

ii. Short term employee benefits and post-employment benefits under defined contribution plans are recognized as an expense at the undiscounted amount in the profit and loss account of the year in which the related services is rendered.

iii. Other long-term employee benefits are recognized as an expense in the profit and loss account for the period in which the employee has rendered services. Estimated liability on account of long-term benefits is discounted to the current value, using the yield on government bonds, as on the date of balance sheet, at the discounting rate.

iv. Actuarial gains and losses in respect of post-employment and other long-term benefits are charged to the profit and loss account.

j) Borrowing Costs:

Interest related to project is charged to cost of project and other interest is charged to revenue.

k) Operating Lease

Rentals are expensed with reference to lease terms and other considerations.

l) Provision for Current and Deferred Tax

Provision for current tax is made after taking into consideration benefits admissible under the Provisions of the Income tax Act, 1961.Deferred tax resulting from "timing difference" between book and taxable profit is accounted for using the tax rates and laws that have been enacted or substantively enacted as on the balance sheet date. The deferred tax asset is recognized and carried forward only to the extent that there is a reasonable certainty that the assets will be realized in future.

m ) Impairment of fixed assets

At the end of each year, the company determines whether a provision should be made for impairment loss on fixed assets by considering the indications that an impairment loss may have occurred in accordance with the Accounting Standard AS-28 on "Impairment of Assets" issued by the Institute of Chartered Accountants of India. An impairment loss is charged to the Profit & Loss Account in the year in which, an asset is identified as impaired, when the carrying amount value of the asset exceeds its recoverable value. The impairment loss recognized in prior accounting periods reversed, if there has been a change in the estimate of recoverable amount.

n ) Provisions, Contingent Liability, Contingent Assets:

Provisions involving substantial degree of estimation in measurement are recognized when there is a brsent 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) General:

Accounting policies not specifically referred to are consistent with generally accepted accounting practice.

1.Adjusted for bonus issue. Deferred Tax :

2.On consideration of prudence, deferred tax asset is not recognised in the accounts.

3.Balances in the Accounts of borrowers of housing loans, Trade Payables and loans and advances are subject to confirmation by the paries' consequential adjustments, if any, at the company level.

4.Details of Loan given, Investments made and Guarantee given covered under section 186 (4) of the Companies

Act, 2013

5."Loans given and investments made are given under the respective heads: "There are no corporate guarantees given by the company in respect of loans as at March 31, 2015.""

Figures of the Previous years are regrouped where necessary.

As per our audit report of even date attached

For Manubhai & Shah

Chartered Accountants

ICAI Firm Registration No. : 106041W

For and on behalf of the Board of Directors

Navneetbhai C. Patel

Chairman

K. B. Solanki

"Partner" "

Membership No. : 110299

Rushabh N. Patel

Managing Director

Riddhiben R. Patel Jt.

Managing Director

Place : Ahmedabad

Date : May 26, 2015