1. Significant Accounting Policies

1.1 Basis of brparation of financial statements:

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

1.2 Presentation & disclosure of financial statements

The company has brpared & brsented the financial statements as on 31st March, 2015 as per the Schedule III notified under the Companies Act, 2013. The Cash Flow Statement has been br­pared and brsented as per the requirements of Accounting Standard (AS) 3 "Cash Flow State­ments".

1.3 Use of estimates:

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

1.4 Revenue Recognition

a) The Company is following the "Percentage of Completion Method" of accounting. As per this method, revenue from sale of properties is recognized in Statement of Profit & Loss in proportion to the actual cost incurred as against the total estimated cost of projects under execution with the Company on transfer of significant risk and rewards to the buyer. Up to 31st March 2013 revenue was recognized only if the actual project cost incurred is 20% or more of the total estimated project cost.

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

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

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

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

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

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

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

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

e) Interest income is recognised on time proportion basis.

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

1.5 Fixed Assets

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

1.6 Impairment

The Company assesses at each balance sheet whether there is any indication that assets may be impaired. If any such indications exist, the Company estimates the recoverable amount of the assets or the cash-generating unit and if the same is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognised in the statement of profit and loss. If at the balance sheet date there is an indication that if a brviously assessed impairment loss no longer exists, the recoverable amount is reas­sessed and the assets are reflected at the recoverable amount.

1.7 Debrciation

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

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

1.8 Inventories

Inventories are valued as under:

I Completed Flats - At lower of Cost or Market value

II Construction Work-in-Progress - At Cost

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

1.9 Investments

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

1.10 Employee Benefits Defined Contribution Plans

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

1.11 Borrowing Costs

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

1.12 Provisions, contingent liabilities and contingent assets

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

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

1.13 Tax Expense

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

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

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

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

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

1.14 Earnings Per Share

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

i i) For the purpose of calculating diluted earnings per share, the net profit for the period attributable to equity shareholders and the weighted average number of shares outstand­ing during the period are adjusted for the effects of all dilutive potential equity shares, if any.

1.15 Segment Reporting

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

1.16 Provisions, Contingent Liabilities and Contingent Assets

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

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

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

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

c) Contingent assets are not recognized.

The brvious figures have been regrouped/reclassified, wherever necessary to conform to the current year prasentation.

2. There was no earning/remittance in foreign currency.

3. Estimated amount of contracts remaining to be executed on capital account and not provided for: Rs. Nil (Rs. Nil).

4. In opinion of the directors, contingent liability not provided is Rs. Nil. (Rs. Nil).

5. Figures have been rounded off to the nearest rupee and brvious year's figures have been regrouped, rearranged and reclassified wherever necessary to confirm with current year's figures.

As per our Report of even date

For J. B. Shah & Co.

Chartered Accountants

Firm No: 121333W

Jasmin B. Shah

Proprietor M.No. 046238

For and on behalf of the Board of Maruti Infrastructure Limited

Nimesh D. Patel Managing Director

Chetan A. Patel Director

Place : Ahmedabad

Date : May 30, 2015