Rights, preferences and restrictions attached to:

Equity Shares:- The Company has only one class of equity share having a par value of Rs 10 per share. Each shareholder is eligible for one vote per share. In the Event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts in proportion to their shareholding.

2. Notes forming part of Financial Statements

2.1 The presentation in the Balance Sheet, Profit and Loss Statement and Notes to the Accounts is in terms of the Revised Schedule VI to the Companies Act, 1956 which has become mandatory with effect from 1st April, 2011. The assets and liabilities have been classified as current and non-current based on a twelve month operating cycle. Previous year's figures have regrouped/reclassified wherever necessary to conform to the current year's presentation.

2.2 Segment Reporting:

The board of directors of the company is of the opinion that there are no separate reportable segments as per Accounting Standard-17, as the operations of the company are in the nature of an integrated system of the function.

2.3 Related Parties Disclosures:

Related party disclosures, as stipulated by Accounting Standard-18 - 'Related Party Disclosures', are give below:

a) Related Parties and their relationships

(1) Associates:

i) R. P. Villas Private Limited

ii) RPT Constructions Private Limited

iii) REL Builders Private Limited

iv) REL Housing Development Private Limited

(2) Key Managerial Personnel:

i) Lingam Ravindra Rao

ii) Lingam Tulasi Prasad

iii) Kilaru Harischandra Prasad

iv) Tummala Sri Rambabu

v) Kanuru Koteswara Rao

vi) Anne Srinivas

vii) Ponnapalli Srinivasa Phani Bhushan Maruthi

viii) Burugulla Venkata Ravi Kumar Maruthi

ix) Koti Surya Prakasa Rao Mullapudi

x) Anjaneyulu Chunchu

2.4 Accounting for taxes on income as per Accounting Standard-22

The deferred tax Asset for the year 2013-14 due to timing differences between financial statements and taxation statements as per the applicable rate of taxation, estimated as Rs. 38,762/- and the same has been credited to Profit & Loss Account as per the procedure prescribed in Accounting Standard-22 "Accounting for Taxes on Income" issued by the ICAI.