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Notes to Accounts of Ansal Properties & Infrastructure Ltd.

Mar 31, 2015

1. i) The Company had consistently followed accounting policy of not considering borrowing costs likely to be incurred in future in general for determining the project revenues, project cost to be charged off, project inventory and debtors till March 31, 2013. However, in the previous year, the company had changed its accounting policy and considered borrowing costs likely to be incurred in future for determining project revenue, project cost, project inventory & debtors.

In compliance with the Accounting Standard (AS-5) notified by Companies (Accounting Standard) Rules, 2006 (as amended), project revenues & project cost to be charged off relating to ongoing projects at that time was recomputed from the date of commencement of those projects. Consequent to this, there was reduction in project revenue by Rs. 2952.77 lacs and increase in project cost by Rs 21.12 lacs. Profit for the previous year was lower by Rs 2,973.89 lacs due to this change.

ii) Policies had been consistently followed in the past in the preparation of accounts duly audited and accepted in respect of (a) project specific advertisement costs, (b) administration and payroll expenses incurred for marketing staff, (c) brokerage paid to dealers, (d) interest paid to customers on refund of customer advances on delayed project. The Company had switched over to new accounting policies in respect of each of these items by charging them off to Statement of Profit & Loss, as against earlier policy of considering them as part of project cost effective from April 01, 2009. Such amount incurred upto March 31, 2009 and included as part of project inventory could not be ascertained earlier due to practical difficulties. Therefore, it was carried forward as such in the financial statements upto the year ended March 31, 2013.

Having identified these items of expenditure incurred upto March 31,2009, project revenues and project costs was recomputed in previous year and the overall impact thereof upto March 31,2013 of Rs. 3,852.71 lacs was charged off to statement of profit & loss with a matching amount withdrawn from general reserve being adjustment relating to earlier years. Such adjustment relating to the previous financial year remained changed/credited to respective heads in Statement of profit & loss.

2. The company has claimed exemption of Rs. 3447.91 lacs upto March 31, 2015 under section 80 IA of the Income Tax Act, 1961 being tax profits arising out of sale of Industrial Park units, pending the notification of the same by Central Board of Direct Taxes (Competent Authority). The Competent Authority rejected the initial application against which the Company has fled review petition. The Company has taken opinion from a senior counsel that its review petition satisfies all the conditions specified in the said Scheme of Industrial Park under Industrial Park Scheme,2008 being replaced under Industrial Park (Amendment) Scheme, 2010, hence, eligible for notification under 80 IA (4) (iii) of the Act. No exemption is claimed during the current year as there are no sales of industrial park units.

3. The Company is carrying project inventory of Rs. 16,374.00 lacs (previous year Rs. 16,733.00 lacs) for Group Housing Project in Greater Noida. Due to downward trend in the market, the Greater Noida Industrial Development Authority (GNIDA) announced a Scheme whereby the developers have option to accept project on a smaller piece of land equivalent to the amount paid and surrender balance project land subject to certain conditions. The Company had applied to the Authority for developing the project on the basis of revised scheme announced by the Authority for which approval has been received envisaging developing the project on a smaller piece of land equivalent to the amount paid and surrender balance project land subject to certain conditions. Pending final decision of the Authority in the matter, the management is of the view that there is no impairment in the value of the land/ project.

4. Generally the Company is regular in repayments of dues to banks and financial institutions. However there were few delays during the year which have been made good.

5. Gratuity and Leave Encashment

Gratuity (being partly administered by a Trust) is computed as 15 days salary, for every completed year of service or part thereof and is payable on retirement/termination/resignation. The Gratuity plan for the Company is a defend benefit scheme where annual contributions as per actuarial valuation are charged to the Statement of Profit & Loss.

The Provident Fund is a defend contribution scheme whereby the Company deposits an amount determined as a fixed percentage of basic pay with the Regional Provident Fund Commissioner.

The Company also has a leave encashment scheme with defend benefits for its employees. The Company makes provision for such liability in the books of accounts on the basis of year end actuarial valuation. No fund has been created for this scheme.

For summarizing the components of net benefit expense recognized in the Statement of Profit and Loss and the funded status and amounts recognized in the Balance Sheet for the respective plans, the details are as under:

6. Prior Period Income/ Expenses

a. Prior Period incomes / expenses to the extent accounted for in the Statement of Profit & Loss are given below:

b. Cost of construction includes sales cancelled/surrenders of Rs. 2,071.46 lacs (previous year Rs. 803.62 lacs) related to sale made in the earlier years. The cost of sales amounting to Rs. 1,049.92 lacs (previous year Rs. 591.12 lacs) has been included in the closing stock. The net impact is loss of Rs. 1,021.53 lacs (previous year Rs. 212.50 lacs) charged to the Statement of Profit and Loss.

7. Segment Reporting

a. Having regard to integrated nature of real estate development business of the Company, there is only one reportable primary segment 'Real Estate Development' in view of which the disclosure requirement of "Segment Reporting" pursuant to Accounting Standard (AS-17) is not applicable.

b. The Company's windmill power project, in terms of revenue and assets employed, is not a reportable segment as per the Accounting Standard (AS-17) on Segment Reporting.

8. a) In the opinion of the Management there is no reduction in the value of any assets, hence no provisions is required in terms of Accounting Standard AS 28 "Impairment of Assets".

b) With a view to monetize its non-core assets, the company entered into an agreement to dispose off its wind business on slump sale basis at a total sales consideration of Rs. 3294 Lacs. The agreement envisages compliance of certain pre-conditions by the Company. Pending the fulfllment of these conditions, the assets sale has not been recognized in accounts. However, since carrying book value of net assets in wind business is higher than the net realizable value, there is possible impairment in the value of wind business of Rs. 1500 Lacs which has also not been recognized in view of continuing uncertainty. In case this transaction does not materialize in near future, the wind business will be reinstated in the books as a cash generating unit.

9. There are no present obligations requiring provisions in accordance with the guiding principles as enunciated in Accounting Standard (AS)-29 'Provisions, Contingent Liabilities & Contingent Assets.

10. There are no hedged or unheeded foreign currency exposures as at March 31, 2015 (previous year Rs. NIL)

11. During the year, pursuant to the provisions of the Companies Act, 2013 and requirements of notification G.S.R. 627 (E) dated August 29,2014, the company has reviewed and reassessed the estimated useful lives and residual value of its fixed assets and adopted useful lives of the assets as per Schedule II to the Companies Act,2013. Accordingly, the unamortized carrying value is being depreciated over the revised remaining useful lives. Consequently, the depreciation charge for the year ended March 31, 2015 is higher by Rs. 179.15 lacs. Depreciation of Rs. 77.09 lacs (net of deferred tax of Rs. 26.20 lacs) has been charged to the opening retained earnings, in accordance with the transitional provision to schedule II of the Companies Act, 2013

12. A. During the year, the Company has incurred an amount of Rs.300 lacs towards Corporate Social Responsibility expenditure.

B. Disclosure required under section 186(4) of the Companies Act, 2013

13. Previous year figures have been regrouped / rearranged wherever considered necessary, to make them comparable with current year's figures.


Mar 31, 2014

1. Contingent Liabilities: (Rs. in lacs)

SL Particulars 2013-14 2012-13

(i) Claims by customers/ex-employees for interest, 3,510.64 1,470.05 damages etc.(to the extent quantified)$ (See foot note i)

(ii) Income Tax demand disputed by the Company. (See foot note ii & iii)

a) On completion of regular assessment 4,974.54 3,225.26

b) On completion of block assessment 1,884.00 1,884.00

(iii) Guarantees given by the Company to Banks/ Financial Institutions/ 38,200.01 42,951.87

Others for loans taken by other Group Companies.

(iv) Service Tax/Sales Tax Demand disputed by the Company. (See foot note iv) 1,208.46 1,207.59

* Out of this amount, sum of Rs. 18.60 lacs (previous year Rs. 17.80 lacs) has already been deposited. $ Interest on certain claims may be payable as and when the outcome of the related claims finally determined and has not been included in above.

NOTES:

i. The management is of the view that in majority of the cases, claims will be successfully resisted or settled out of court on payment of nominal compensation.

ii. As regards income tax demands of Rs. 4,974.54 lacs (previous year Rs. 3,225.26 lacs) disputed by the Company are concerned, similar demands have been set aside by the Appellate Authorities in most of the cases in the past. Further company has deposited advance tax net of provision of income tax to the tune of Rs. 2,189.34 lacs (previous year Rs 1,228.28 lacs) against such demand.

iii. In respect of block assessment for the year 1st April, 1989 to 12th February, 2000, wherein cross appeals have been filed by the Company and the Tax department, Income Tax Appellate Tribunal (ITAT) has given full relief to the Company and rejected the department''s grounds of appeal and tax claim of Rs.4,409 lacs. The tax department has gone for further reference to the High Court. The Company, based on an arbitration award, had accounted for income of Rs. 4,200 lacs in the year 2002-03 and paid/provided income tax accordingly. The contingent liability not provided in the accounts in respect of block assessments is estimated at Rs. 1,884 lacs. The Company has been legally advised that it has a good case to succeed in the High Court.

iv. Though the assessment under Haryana Value Added Tax Act have been finalized upto financial year 2010-11, but after decision of Hon''ble Supreme Court in case of L & T, assessing authority have given notice for revision and re-assessment for financial year 2007-08,2008-09,2010-11. The revision notice for 2007-08 given by the assessing authority has been challenged in the Hon''ble High Court of Punjab & Haryana at Chandigarh and the Hon''ble Court has granted stay for finalizing re-assessment till the further hearing of the case.

3. The Company had consistently followed accounting policy of not considering borrowing costs likely to be incurred in future in general for determining the project revenues, project cost to be charged off, project inventory and debt- ors till March 31, 2013. However, during the current financial year, the company has changed its accounting policy & considered borrowing costs likely to be incurred in future for determining project revenue, project cost, project inventory & debtors.

In compliance with the Accounting Standard (AS-5) notified by Companies (Accounting Standard) Rule, 2006 (as amended), project revenues & project cost to be charged off relating to current projects has been recomputed from the date of commencement of the projects. Consequent to this, there is reduction in project revenue by Rs. 2952.77 lacs and increase in project cost by Rs 21.12 lacs. Profit for the year is lower by Rs 2973.89 lacs due to this change.

4. Policies have been consistently followed in the past in the preparation of accounts duly audited and accepted in respect of (a) project specific advertisement costs, (b) administration and payroll expenses incurred for marketing staff, (c) brokerage paid to dealers, (d) interest paid to customers on refund of customer advances on delayed project. The Company has switched over to new accounting policies in respect of each of these items by charging them off to Statement of Profit & Loss, as against earlier policy of considering them as part of project cost. The new accounting policies were adopted effective from April 01, 2009. Such amount incurred upto March 31, 2009 and included as part of project inventory could not be ascertained due to practical difficulties. Therefore, it was carried forward as such in the financial statements upto the year ended March 31, 2013.

Having identified these items of expenditure incurred upto March 31,2009, project revenues and project costs have been recomputed and the overall impact thereof upto March 31,2013 of Rs. 3,852.71 lacs has been charged off to statement of profit & loss with a matching amount withdrawn from general reserve being adjustment relating to earlier years.

5. The company has claimed exemption of Rs. 3447.91 lacs upto March 31, 2013 under section 80 lAofthe Income Tax Act, 1961 being tax profits arising out of sale of Industrial Park units, pending the notification of the same by Central Board of Direct Taxes (Competent Authority). The Competent Authority rejected the initial application against which the Company has filed review petition. The Company has taken opinion from a senior counsel that its review petition satisfies all the conditions specified in the said Scheme of Industrial Park under Industrial Park Scheme,2008 being replaced under Industrial Park (Amendment) Scheme, 2010, hence, eligible for notification under 80 IA (4) (iii) of the Act. No exemption is claimed during the current year as there are no sales of industrial park units.

6. The Company is carrying project inventory of Rs. 16,733.00 lacs (previous year Rs. 18,718.98 lacs) for Group Housing Project in Greater Noida. Due to downward trend in the market, the Greater Noida Industrial Development Authority (GNIDA) announced a Scheme whereby the developers have option to accept project on a smaller piece of land equivalent to the amount paid and surrender balance project land subject to certain conditions. The Compa- ny had applied to the Authority for developing the project on the basis of revised scheme announced by the Authority for which approval has been received envisaging developing the project on a smaller piece of land equivalent to the amount paid and surrender balance project land subject to certain conditions. Pending final decision of the Authority in the matter, the management is of the view that there is no impairment in the value of the land/ project.

7. Generally the Company is regular in repayments of dues to banks and financial institutions. However there were few delays during the year which have been made good.

Following delays exist as on March 31, 2014:

8. Gratuity and Leave Encashment

Gratuity (being partly administered by a Trust) is computed as 15 days salary, for every completed year of service or part thereof and is payable on retirement/termination/resignation. The Gratuity plan for the Company is a defined benefit scheme where annual contributions as per actuarial valuation are charged to the Statement of Profit & Loss.

The Provident Fund is a defined contribution scheme whereby the Company deposits an amount determined as a fixed percentage of basic pay with the Regional Provident Fund Commissioner.

The Company also has a leave encashment scheme with defined benefits for its employees. The Company makes provision for such liability in the books of accounts on the basis of year end actuarial valuation. No fund has been created for this scheme.

For summarizing the components of net benefit expense recognized in the Statement of Profit and Loss and the funded status and amounts recognized in the Balance Sheet for the respective plans, the details are as under:

The expenses and incomes comprise of various items of operational expenses and incomes mainly travelling, legal & professional and others arising and recognized during the year owing to errors/omissions in the prepara- tion of financial statements of earlier years for these items.

b. Cost of construction includes sales cancelled/surrenders of Rs. 803.62 lacs (previous year Rs. 4,038.40 lacs) related to sale made in the earlier years. The cost of sales amounting to Rs. 591.12 lacs (previous year Rs. 1,761.58 lacs) has been included in the closing stock. The net impact is loss of Rs. 212.50 lacs (previous year Rs. 2,276.82 lacs) charged to the Statement of Profit and Loss.

9. Segment Reporting

a. Having regard to integrated nature of real estate development business of the Company, there is only one reportable primary segment ''Real Estate Development'' in view of which the disclosure requirement of "Segment Reporting" pursuant to Accounting Standard (AS-17) is not applicable.

b. The Company''s windmill power project, in terms of revenue and assets employed, is not a reportable segment as per the Accounting Standard (AS-17) on Segment Reporting.

10. Earnings Per Share

Basic as well as diluted earnings per share calculated in accordance with the requirements of Accounting Standard 20- "Earnings Per Share" are given here under:-

Note:

Advances given to Subsidiary and Joint Venture Companies for purchase of land and other purposes are not considered advances in the nature of loans and have not been considered for the disclosure.

iv. Associates

The following are the enterprises where common control exists:-

1 Amba Bhawani Properties Private Limited

2 Ansal ColonisersS Developers Private Limited

3 Ansal Housing & Estates Private Limited

4 Ambience Hospitality Private Limited

5 Ansal Infrastructure Projects Limited

6 Ansal Projects & Developers Limited

7 Apna Ghar Properties Private Limited

8 Badrinath Properties Private Limited

9 Bajrang Realtors Private Limited

10 Chamunda Properties Private Limited

11 Chandi Properties Private Limited

12 Chiranjiv Investments Private Limited

13 Kalka Properties Private Limited

14 Naurang Investment & Financial Services Private Limited

15 New Line Properties & Consultants Private Limited

16 Plaza Software Private Limited

17 Prime Golf Ranking Private Limited

18 Prime Maxi Promotion Services Private Limited (Formerly Prime Maxi Mall Management Private Limited)

19 Sampark Hotels Private Limited

20 Satrunjaya Darshan Construction Co. Private Limited

21 Singa Real Estates Limited

22 Delhi Towers & Estates Private Limited

23 Sithir Housing & Constructions Private Limited

24 Ansal Retail Properties Private Limited*

25 Zameer Realtors Private Limited*

26 Ansal Infrastructure Developers Limited*

27 Ansal Township Developers Limited*

28 Augustan Infrastructure Private Limited*

29 Chakradhari Properties Private Limited**

30 Durga Buildtech Private Limited*

31 Gauri Realtors Private Limited*

32 Girija Shankar Properties Private Limited*

33 Katra Buildtech Private Limited*

34 Katra Real Estates Private Limited*

35 Katra Realtors Private Limited*

36 Pragati Techno Build Private Limited*

37 Satnam Buildtech Private Limited*

38 Ubiquity Realtors Private Limited*

39 Vishnu Real Estates Private Limited*

40 Yamnotri Properties Private Limited*

41 Eternity Real Estates Private Limited*

42 Star Estates Management Limited*

43 Pervasive Properties Private Limited*

44 Sarvatra Realtors Private Limited*

45 Sopanam Realtors Private Limited*

46 Sputnik Realtors Private Limited*

47 Sarvottam Realtors Private Limited*

48 Ansal Multiproducts (SEZ) Limited*

49 API India Realty Private Limited*

50 Ansal - Urban Infrastructure Developers Limited*

51 Arunodaya Infraprojects Private Limited*

52 Banyan Infratech Private Limited*

53 Braja Dham Constructions Private Limited*

54 Blessing Real Estates Private Limited*

55 Blossom Townships Private Limited*

56 Canyon Realtors Private Limited*

57 Darwin Realtors Limited*

58 Colorado Properties Private Limited*

59 Galaxy Infracon Limited*

60 Indigo Infratech Private Limited*

61 Ishatvam Developers Private Limited*

62 Jupiter Township Limited*

63 Lord Krishna Infraprojects Limited*

64 Magus Realtech Private Limited*

65 Ecobase Land Developers Private Limited*

66 Mercury Infratech Private Limited*

67 Niagara Realtors Private Limited*

68 Parisar Realtors Private Limited*

69 Saubhagya Real Estates Private Limited*

70 Sanraj Associates Private Limited*

71 Sushant Realtors Private Limited*

72 Ansal API Power Limited*

73 Ansal Urban Township Developers Private Limited*

74 Ansal API Affordable Homes Limited*

75 Caliber Properties Private Limited*

76 Ansal API Logistics Limited*

77 Utsav Hospitality & Clubs Private Limited

78 Knowledge Tree Infrastructure Limited

79 Orchid Realtech Private Limited

80 Sushil Ansal Foundation

81 Kusumanjali Foundation

82 Westbury Hotels Private Limited

83 Dharti Realtors Private Limited*

84 Icon Buildcon Private Limited*

85 Bhagirathi Realtors Private Limited*

86 Prithvi Buildtech Private Limited*

87 Rudraprayag Realtors Private Limited*

88 Vasundhra Realtors Private Limited*

89 Sky Scraper Infraprojects Private Limited

90 Alaknanda Realtors Private Limited*

91 Abhilasha Buildcon Private Limited*

92 Decorous Realtors Private Limited*

93 SFML HI Tech Facilities Management Private Limited

94 Upasana Buildtech Private Limited*

95 Bhumika Infracon Private Limited*

96 High Rise Buildtech Private Limited*

97 Pertinent Realtors Private Limited

98 Accurex Properties Private Limited*

99 G S Fincap Private Limited*

100 Capital Club Private Limited

101 Lotus Infratech Private Limited*

102 JMV Ecoteck Developers Limited*

103 Kabini Real Estates Private Limited*

104 Saraswati Buildwell Private Limited*

105 Kedarnath Infratech Private Limited*

106 Bedrock Realtors Private Limited*

1D7 f.hiraniiv f.haritahlp Trust

v. Associates in which there is "Significant Influence

1 Aesthete Realtors Private Limited*

2 Ansal Theatres & Clubhotels Private Limited

3 Discreet Realtors Private Limited*

4 Ansal Urban Condominium Private Limited

5 Rainbow Infratech Private Limited*

6 Chandra Maulishwar Properties Private Limited*

7 Vakrtunda Realtors Private Limited*

8 Efficacious Realtors Private Limited*

9 Aptitude Real Estates Private Limited*

10 Manikaran Realtors Private Limited*

11 Ecoland Developers Private Limited*

12 Scenic Real Estates Private Limited*

13 Heritage Infratech Private Limited*

14 AnsalAPI Affordable Homes Limited

15 Ansal API Power Limited

16 Star Estates Management Limited


Mar 31, 2013

1. Contingent Liabilities:

(Rs. in lacs)

S. Particulars 2012-13 2011-12 No.

(i) Claims by customers/ ex-employees for interest, 1,470.05 1,849.86 damages etc.(to the extent quantified) (See foot note i)

(ii) Income Tax demand disputed by the Company. (See foot note ii &

iii) a) On completion of regular assessment 3,225.26 948.12

b) On completion of block assessment 1,884.00 1,884.00

(iii) Guarantees given by the Company to Banks/Financial Institutions/ Others for loans taken by other Group Companies. 42,951.87 33,239.82

(iv) Service Tax / Sales Tax Demand disputed by the Company. 1,207.59* 822.61

*Out of this amount, sum of Rs. 17.80 lacs (previous year Rs. 15.30 lacs)has already been deposited.

NOTES:

i. The management is of the opinion that in majority of the cases, claims will be successfully resisted or settled out of court on payment of nominal compensation.

ii. As regards income tax demands of Rs. 3,225.26 lacs (previous year Rs. 948.12 lacs) disputed by the Company are concerned, similar demands have been set aside by the Appellate Authorities in most of the cases in the past. Further company has deposited advance tax net of provision of income tax to the tune of Rs. 1,228.28 lacs against such demand.

iii. In respect of block assessment for the year 1st April, 1989 to 12th February, 2000, wherein cross appeals have been filed by the Company and the Tax department, Income Tax Appellate Tribunal (ITAT) has given full relief to the Company and rejected the department''s grounds of appeal and tax claim of Rs.4,409 lacs. The tax department has gone for further reference to the High Court. The Company, based on an arbitration award, had accounted for income of Rs. 4,200 lacs in the year 2002-03 and paid/provided income tax accordingly. The contingent liability not provided in the accounts in respect of block assessments is estimated at Rs. 1,884 lacs. The Company has been legally advised that it has a good case to succeed in the High Court.

2. With regard to accounting for borrowing costs likely to be incurred in future, the Company is following the same accounting policy as consistently followed in the past, since having regard to the uncertainty of means of financing the project and the relevant cash flow in future, it is not possible to arrive at a precise estimate of the borrowing costs likely to be incurred in future in relation to each specific project.

3. Policies have been consistently followed in the past in the preparation of accounts duly audited and accepted in respect of (a) project specific advertisement costs, (b) administration and payroll expenses incurred for marketing staff, (c) brokerage paid to dealers, (d) interest paid to customers on refund of customer advances on delayed project. The Company has switched over to new accounting policies in respect of each of these items by charging off to Statement of Profit &Loss, as against hitherto, policy of considering them as part of project cost. The new accounting policies have been adopted w.e.f. April 01, 2009. Such amount incurred upto March 31, 2009 and included as part of project inventory cannot be ascertained due to practical difficulties.

4. The Company has claimed exemption of Rs. 3,447.91 lacs upto March 31, 2013(previous year Rs. 3,447.91 lacs) under section 80 IA of the Income Tax Act, 1961 being tax profits arising out of sale of Industrial Park units, pending the notification of the same by Central Board of Direct Taxes (CBDT) based on the opinion from a senior counsel that its application satisfies all the conditions specified in the said Scheme of Industrial Park. However, no exemption is claimed during the current year as there are no sales of industrial park units during the year.

5. The Company is carrying project inventory of Rs. 18718.98 lacs (previous year Rs. 16,833.04 lacs) for Group Housing Project in Greater Noida. Due to downward trend in the market, the Greater Noida Industrial Development Authority (GNIDA) announced a Scheme whereby the developers have option to accept project on a smaller piece of land equivalent to the amount paid and surrender balance project land subject to certain conditions. The Company had applied to the Authority for developing the project on the basis of revised scheme announced by the authority for which approval has been received envisaging developing the project on a smaller piece of land equivalent to the amount paid and surrender balance project land subject to certain conditions. Pending final decision of the authority in the matter, the management is of the view that there is no impairment in the value of the land/ project.

6. Generally the Company is regular in repayments of dues to banks and financial institutions. However there were few delays during the year which have been made good.

7. Gratuity and Leave Encashment

Gratuity (being partly administered by a Trust) is computed as 15 days salary, for every completed year of service or part thereof and is payable on retirement/termination/resignation. The Gratuity plan for the Company is a defined benefit scheme where annual contributions as per actuarial valuation are charged to the Statement of Profit & Loss.

The Provident Fund is a defined contribution scheme whereby the Company deposits an amount determined as a fixed percentage of basic pay with the Regional Provident Fund Commissioner.

The Company also has a leave encashment scheme with defined benefits for its employees. The Company makes provision for such liability in the books of accounts on the basis of year end actuarial valuation. No fund has been created for this scheme.

For summarizing the components of net benefit expense recognized in the Statement of Profit and Loss and the funded status and amounts recognized in the Balance Sheet for the respective plans, the details are as under:

8. Segment Reporting

a. Having regard to integrated nature of real estate development business of the Company, there is only one reportable primary segment ''Real Estate Development'' in view of which the disclosure requirement of "Segment Reporting" pursuant to Accounting Standard (AS-17) is not applicable.

b. The Company''s windmill power project, in terms of revenue and assets employed, is not a reportable segment as per the Accounting Standard (AS-17) on Segment Reporting.


Mar 31, 2012

A. Terms/rights attached to Equity Shares

The Company has only one class of Equity Shares having a par value of Rs.5/- each. Each holder of Equity Shares is entitled to one vote per share. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General meeting. In the event of liquidation of the company, the holders of Equity Shares will be entitled to receive remaining assets of the company , after distribution of all preferential amounts. The distribution will be in proportion to the number of Equity Shares held by the Shareholders.

b. Aggregate number of bonus shares issued, during the period of five years immediately preceeding the reporting period i.e. March 31,2012 1,50,07,125 Lacs Equity Shares of Rs.10/- each and 5,67,50,550 Lacs Equity Shares of Rs.5/-each have been issued as Bonus Shares by capitalization of Share Premium/General Reserves during the financial year 2005-06 and 2007-08 respectively.

Nature of Security and Terms of Repayment for Secured Borrowings

a. Debentures

(i) 2,073,770 Debentures of face value of Rs.100 with the issue price of Rs.305 per debenture aggregating to Rs.6,325 lacs carrying a coupon rate of 16.50% p.a, issued to HDFC Venture Trustee Company Limited on August 26,2008, were due for redemption on February 27,2010. The redemption was subsequently extended upto October 31,2010 and upto May 31,2012. Out oftotal value of Debentures amounting to Rs.6,325 lacs, the Company has repaid Rs.4893 Lacs. Out of balance outstanding Debentures of Rs.1,432.30 Lacs (Previous year Rs. 1825 Lacs), Rs.819.66lacs (Previous year Rs. 819.66 lacs) have been classified as secured against the security of flats belonging to the Company.

(ii) 10,000,000 debentures of Rs.100 each aggregating to Rs.100 crores carrying coupon rate of 11.50% were issued to LIC Mutual Fund on February 14,2008. These were restructured to be redeemed in 18 monthly instalments as per redemption schedule therein starting from February 25,2009 with revised coupon rate of 13% p.a. and further in 8 monthly installments as per redemption schedule therein starting from August 18,2011 with revised coupon rate of 17% p.a. The Debentures are secured by legal mortgage of property in Gujarat and equitable mortgage by deposit of title deeds of land at Lucknow owned by the Company. The outstanding balance due for payment as on March 31,2012 was Rs.819.23 lacs (Previous year Rs. 8,400 lacs) which has been paid subsequently.

b. Term Loans

(i) The outstanding balance of Rs.222.88 lacs as on March 31,2012 (Previous year Rs. 374.25 lacs), from banks/corporate bodies against Vehicle I Equipment loans are secured by hypothecation of vehicles and equipments. The outstanding balance as on March 31,2012 is repayable in 31 monthly installments ranging from Rs. 0.29 lacs to Rs. 2.18 lacs.

(ii) The outstanding balance of Rs.715.22 lacs as on March 31,2012 (Previous year Rs. 5,096.22 lacs), out of sanctioned loan ofRs.6,600 lacs is secured byway of first mortgage I charge on the immovable property located at Jaipur, Jodhpur and Ajmer. In addition, secured by exclusive charge on Project assets and receivables and by Personal Guarantee of two Promoter Directors.

(iii) The outstanding balance of Rs. 1,200 lacs as on March 31,2012 (Previous year Rs. 10,000 lacs), out of sanctioned loan of Rs. 12,500 lacs is secured by way of first mortgage I charge on the immovable property located at Panipat, Sonepat, Bijwasan and Jaipur. In addition, secured by exclusive charge on Project assets and receivables and by Personal Guarantees of two Promoter Directors.

(iv) The outstanding balance of Rs. 30,403.07 lacs as on March 31, 2012 (Previous year Rs. 30,018.93 lacs), out of sanctioned loan ofRs. 56,451.60 lacs is secured byway of first mortgage / charge on the immovable property located at Lucknow, Ansal Plaza (Khel Gaon New Delhi, Gurgaon and Greater Noida), Greater Noida, Sonepat, Palam Vihar, Sushant Lok, Badshahpur (Gurgaon). In addition, secured by exclusive charge on Project assets and receivables and by Personal Guarantee of two Promoter Directors. The outstanding balance as on March 31, 2012 is repayable in 108 monthly/quarterly installments ranging from Rs. 2.86 lacs to Rs.1,917 lacs.

(v) The outstanding balance of Rs. 9,278.39 lacs as on March 31, 2012 (Previous year Rs. 13,000 lacs), out of sanctioned loan of Rs. 13,000 lacs is secured by way of first mortgage / charge on the immovable property located at Panipat, Lucknow and Dadri (Uttar Pradesh) and units of Ansal Bhawan located at New Delhi. In addition, secured by exclusive charge on Project assets, receivables, Pledge of shares of the Company owned by Promoters and by Personal Guarantees of two Promoter Directors. The outstanding balance as on March 31, 2012 is repayable in 24 monthly installments ranging from Rs. 125 lacs to Rs. 466 lacs.

(vi) The outstanding balance of Rs. 6,925 lacs as on March 31,2012 (Previous year Rs. 1,000 lacs), out of sanctioned loan of Rs.7,500 lacs is secured by way of first mortgage / charge on the immovable property located at Lucknow. In addition, secured by exclusive charge on three Group Housing Projects assets and receivables and by Personal Guarantees of two Promoter Directors. The outstanding balance as on March 31, 2012 is repayable in 10 quarterly installments ofRs. 750 lacs each.

(vii) The outstanding balance of Rs. 3,400 lacs as on March 31,2012 (Previous year Rs. 3,775 lacs), out of sanctioned loan of Rs. 5,000 lacs is secured by way of exclusive charge on the machineries of Wind power Project located at Gujarat. In addition, secured by exclusive charge on project receivables and documents and by Personal Guarantees of two Promoter Directors. The outstanding balance as on March 31,2012 is repayable in 16 quarterly installments ranging from Rs. 150 lacs to Rs. 250 lacs.

(viii) The outstanding balance ofRs. 4,924.15 lacs as on March 31, 2012 (Previous year NIL), out of sanctioned loan ofRs. 5,000 lacs is secured byway of first mortgage / charge on the immovable property located at Kurukshetra and Mohali. In addition, secured by exclusive charge on Project assets and receivables and by Personal Guarantees of two Promoter Directors. The outstanding balance as on March 31,2012 is repayable in 11 quarterly installments ranging from Rs. 225 lacs to Rs. 850 lacs.

(ix) The outstanding balance of Rs. 2,500 lacs as on March 31,2012 (Previous year NIL), out of sanctioned loan of Rs. 2,500 lacs is secured by way of first mortgage / charge on the immovable property located at Yamuna Nagar and Mohali. In addition, secured by exclusive charge on Project assets and receivables and by Personal Guarantees of two Promoter Directors. The outstanding balance as on March 31,2012 is repayable in 11 quarterly installments ranging from Rs. 125 lacs to Rs. 300 lacs.

(x) The outstanding balance of Rs. 12,097.43 lacs as on March 31, 2012 (Previous year Rs. 16,310.87 lacs), out of sanctioned loan of Rs.17,500 lacs is secured byway of first mortgage / charge on the immovable property located at Agra, Sonepat and Mohali. In addition, secured by exclusive charge on Project assets and receivables and by Personal Guarantees of Promoter Director. The outstanding balance as on March 31,2012 is repayable in 21 monthly installments ranging from Rs. 550 lacs to Rs. 750 lacs.

(xi) The outstanding balance ofRs. 4,218.75 lacs as on March 31,2012 (Previous year Rs. 6,539.62 lacs), out of sanctioned loan of Rs.7,500 lacs is secured by way of first mortgage / charge on the immovable property located at Lucknow. In addition, secured by exclusive charge on Jaipur Phase-ll Project receivables and by Personal Guarantees of two Promoter Directors. The outstanding balance as on March 31, 2012 is repayable in 10 quarterly installments of Rs. 383.52 lacs each.

(xii) The outstanding balance of Rs.3,451.30 lacs as on March 31,2012 (Previous year Rs. 5,490 lacs), out of sanctioned loan of Rs. 6,000 lacs is secured by way of first mortgage / charge on the immovable property located at Sonepat. In addition, secured by exclusive charge on Project receivables and assets and by Personal Guarantees of two Promoter Directors. The outstanding balance as on March 31,2012 is repayable in 6 quarterly installments of Rs. 500 lacs each.

(xiii) The outstanding balance of Rs. 230 lacs as on March 31, 2012 (Previous year NIL), out of sanctioned loan of Rs.230 lacs is secured by lien over Fixed Deposits ofthe Company. The outstanding balance as on March 31,2012 is repayable in bullet payment of Rs.230 lacs.

(xiv) The outstanding balance of Rs. NIL (Previous year Rs. 4,500 lacs) as on March 31, 2012 , out of sanctioned loan of Rs.5,000lacs is secured by way of first mortgage / charge on the immovable property located at Kurukshetra and Mohali. In addition, secured by exclusive charge on Project assets and receivables and by Personal Guarantees of two Promoter Directors.

(xv) The outstanding balance of Rs. NIL as on March 31, 2012 (Previous year Rs. 684.49 lacs), out of sanctioned loan of Rs.2,500 lacs is secured by way of first mortgage / charge on the immovable property located at Shushant lok, Jodhpur project. In addition, secured by exclusive charge on Project assets and receivables and by Personal Guarantees of two Promoter Directors.

(xvi) The outstanding balance of Rs. NIL as on March 31,2012 (Previous year Rs. 1763.63 lacs), out of sanctioned loan of Rs.2,500 lacs is secured byway of first mortgage / charge on the immovable property located at Kurukshetra. In addition, secured by exclusive charge on Project assets and receivables and by Personal Guarantees of two Promoter Directors. The Interest on above term loans from banks and corporate bodies are linked to the respective Banks/ Institutions base rates which are floating in nature. Interest rates during the year varied from 8.16% to 18.00% per annum.

c. Deposits

Deposits from Shareholder and Public carry interest rate from 11.50% to 12.50% and are repayable in one year to three years.

1. Contingent Liabilities:

S. Particulars As at March 31,2012 As at March 31,2011 No. Rs. in lacs Rs. in lacs

(i) Claims by customers /ex-employees for interest, damages etc.(to the extent quantified) (See foot note i) 1,849.86 1,919.31

(ii) Claims by Local Authorities for Ground Rent* - 291.00

(iii) Income Tax demand disputed by the Company. (See foot note ii & iii)

a) On completion of regular assessment 948.12 815.83

b) On completion of block assessment 1,884.00 1,884.00

(iv) Guarantees given by the Company to Banks/Financial 33,239.82 23,308.74 Institutions/ Others for loans taken by other Group Companies.

(v) Service Tax/Sales Tax Demand disputed by the 822.61** 575.22 Company.

*Order passed in Company's favour & till date no fresh appeal has been filed by concerned authorities.

**Out of this amount, sum of Rs. 15.30 lacs has already been deposited.

NOTES:

i. The management is of the opinion that in majority of the cases, claims will be successfully resisted or settled out of court on payment of nominal compensation.

ii. As regards income tax demands of Rs. 948.12 lacs (Previous year Rs. 815.83 lacs) disputed by the Company are concerned, similar demands have been set aside by the Appellate Authorities in most of the cases in the past. Further company has deposited advance tax net of provision of income tax to the tune of Rs. 1,185.08 lacs against such demand.

iii. In respect of block assessment for the year 1st April, 1989 to 12th February, 2000, wherein cross appeals have been filed by the Company and the Tax department, Income Tax Appellate Tribunal (ITAT) has given full relief to the Company and rejected the department's grounds of appeal and tax claim of Rs. 4,409 lacs. The tax department has gone for further reference to the High Court. The Company, based on an arbitration award, had accounted for income of Rs. 4,200 lacs in the year 2002-03 and paid/provided income tax accordingly. The contingent liability not provided in the accounts in respect of block assessments is estimated at Rs. 1,884 lacs. The Company has been legally advised that it has a good case to succeed in the High Court.

2. With regard to accounting for borrowing costs likely to be incurred in future, the Company is following the same accounting policy as consistently followed in the past, since having regard to the uncertainty of means of financing the project and the relevant cash flow in future, it is not possible to arrive at a precise estimate of the borrowing costs likely to be incurred in future in relation to each specific project.

3. Policies have been consistently followed in the past in the preparation of accounts duly audited and accepted in respect of (a) project specific advertisement costs, (b) administration and payroll expenses incurred for marketing staff, (c) brokerage paid to dealers, (d) interest paid to customers on refund of customer advances on delayed project. The Company has switched over to new accounting policies in respect of each of these items by charging off to Statement of Profit & Loss, as against hitherto, policy of considering them as part of project cost. The new accounting policies have been adopted w.e.f. April 01, 2009. Such amount incurred upto March 31, 2009 and included as part of project inventory cannot be ascertained due to practical Difficulties.

4. The Company has claimed exemption of Rs. 3447.91 lacs upto March 31,2011 under section 80 lA of the Income Tax Act, 1961 being tax profits arising out of sale of Industrial Park units, pending the notification of the same by Central Board of Direct Taxes (CBDT) based on the opinion from a senior counsel that its application satisfies all the conditions specified in the said Scheme of Industrial Park. However, no exemption is claimed during the current year as there are no sales of industrial park units during the year.

5. In the earlier year, the company has raised an aggregate amount Rs. 30,195 lacs by way of issue & allotment of 85,50,000 Nos. of Equity shares of Rs. 51- each, fully paid up, to the five identified Resident investors on preferential issue basis for Rs. 7,054 lacs, And, 2,57,26,291 Nos. of Equity shares of Rs. 51- each, fully paid up to the QIB's under Qualified Institutions Placement for Rs. 23,141 lacs in terms of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009. The said amount of Rs. 30,195 lacs received from them has been fully utilized for the Company's ongoing projects, repayment of Loan & Debentures investment, corporate expenses/ purchase of land, sanctioning cost and QIP expenses.

6. a. The Company has given advances to land owning companies/collaborators/others for purchase/aggregation of land for others to the tune of Rs. 13,706.88 lacs (previous year Rs.16,603.64 lacs). This includes Rs. 10,000 lacs (previous year Rs. 10,000 lacs) as security deposits, the recoverability / adjustment of which is dependent upon the future events such as launch of project(s) for which steps have been or are being taken by the Company. As regards the balance amount of Rs. 3,706.88 lacs (previous year Rs. 6,603.64 lacs), pending details of land purchased and financial position of these parties, these advances are given in respect of ongoing transactions with collaborators / other parties and are regarded as being in the normal course of business.

b. The Company is carrying project inventory of Rs. 16,833.04 lacs (Previous year Rs. 16,719.00 lacs) for Group Housing Project in Greater Noida. Due to downward trend in the market, the Greater Noida Industrial Development Authority (GNIDA) announced a Scheme whereby the developers have option to accept project on a smaller piece of land equivalent to the amount paid and surrender balance project land subject to some deductions. The company had applied to the Authority for developing the project on the basis of revised Scheme announced by the Authority for which approval has been received envisaging developing the project on a smaller piece of land equivalent to the amount paid and surrender balance project land subject to certain conditions. Pending final decision of the Authority in the matter, the management is of the view that there is no impairment in the value of land/ project.

c. During the year under review, the Company has transferred Trunk Infrastructure Assets in one of the Integrated Hi-Tech Town-ship projects in Uttar Pradesh, to a wholly owned Infra Subsidiary Company on the basis of fair valuation by a certified valuer. The obligation of further development of Trunk Infrastructure, maintenance and charging for the same now lies with the subsidiary company. Resultant surplus of Rs. 7,005.71 lacs on transfer of such Infrastructure Assets, being the difference between the book value and transfer value has been recognised during the year. Further, pursuant to AS-21 which deals with consoli dated Financial Statements, such surplus has been eliminated in the consolidated financial results on account of this intra group transaction.

d. Generally the Company is regular in repayments of dues to banks and financial institutions. However, there were a few delays in payments of principal, interest & redemption premium to banks & financial institutions which have been paid during the year under review, as per details given as under:

7. Leases

The Company has taken heavy vehicles/ earth moving equipment on non-cancelable operating lease. The future minimum lease payments in respect of the same are as under:

8. Gratuity and Leave Encashment

Gratuity (being partly administered by a Trust) is computed as 15 days salary, for every completed year of service or part there of and is payable on retirement/termination/resignation. The Gratuity plan for the Company is a defined benefit scheme where ann-ual contributions as per actuarial valuation are charged to the Statement of Profit & Loss.

The Provident Fund is a defined contribution scheme whereby the Company deposits an amount determined as a fixed percen-tage of basic pay with the Regional Provident Fund Commissioner.

The Company also has a leave encashment scheme with defined benefits for its employees. The Company makes provision for such liability in the books of accounts on the basis of year end actuarial valuation. No fund has been created for this scheme. For summarizing the components of net benefit expense recognized in the Statement of Profit & Loss and the funded status and amounts recognized in the Balance Sheet for the respective plans, the details are given here under:

Statement of Profit and Loss Net employee benefit expense

# The amount of Rs. 42.56 lacs (Previous Year Rs. 62.97 lacs) was paid outside the trust fund which is included in the above benefit paid.

$ The amount of Rs. 62.97 lacs (Previous Year Rs. 4.58 lacs) was paid outside the trust fund which is included in the above benefit paid.

$$ The amount of Rs. 4.58 lacs was paid outside the trust fund which is included in the above benefit paid.

of financial statements of earlier years for these items.

b. Cost of construction includes sales cancelled/surrenders of Rs. 2,500.38 lacs (Previous year Rs. 3,377.57 lacs) related to sale made in the earlier years. The cost of sales amounting to Rs. 1,148.12 lacs (Previous year Rs. 1,372.20 lacs) has been included in the closing stock. The net impact is a loss of Rs. 1,352.26 lacs (Previous year of Rs. 2,005.37 lacs) charged to the Statement of Profit & Loss.

9. Segment Reporting

a. Having regard to integrated nature of real estate development business of the Company, the disclosure requirement of "Segment Reporting" pursuant to Accounting Standard (AS-17) is not applicable.

b. The Company's windmill power project, in terms of revenue and assets employed, is not a reportable segment as per the Accounting Standard (AS-17) on Segment Reporting.

Figures in brackets indicate previous year figures *Joint Venture upto August 30, 2011 Note:

Advances given to Subsidiary and Joint Venture Companies for purchase of land and other purposes are not considered advances in the nature of loans and have not been considered for the disclosure.

10. The Financial Statements for the year ended March 31, 2011 had been prepared as per then applicable, pre revised Schedule VI to the Companies Act, 1956. Consequent to the notification of Revised Schdule VI under the Companies Act, 1956, the financial statement for the year ended March 31,2012 are prepared as per Revised Schedule VI. Accordingly, the previous year figures have also been reclassified to conform to this year's classification. There is no change in the recognition & measurement, however, there are changes in the presentation & disclosures.


Mar 31, 2010

1. NATURE OF OPERATIONS

Ansal Properties and Infrastructure Ltd. ("APIL" or the "Company"), was incorporated in 1967. The Companys main business is real estate promotion and development in residential and commercial segment.

2. Contingent Liabilities:

Sl. Particulars As at As at

No. 31st March, 2010 31st March, 2009

Rs. in lacs Rs.in lacs

i) Claims by customers /ex-employees for

interest, damages etc.(to the extent quantified) (See foot note i) 1915 1932

(ii) Claims by local Authorities for Ground Rent 291 303

(iii)Income/Wealth Tax demand disputed by the

Company. (See foot note ii&iii) a) On completion of regular assessment 782 769

b) On completion of block assessment 1884 1884

(iv) Guarantees given by the Company to Banks/

Financial Institutions/Others for loans taken by 34673* 21808*

other Group Companies.

(v) Service Tax / Sales Tax Demand disputed by the 1121 730

Company (See foot note iv)

"Includes loan of Rs.5000 lacs (Previous year Rs 5000 lacs) taken byAnsal Colors Engineering SEZ Ltd. for which the Company has pledged shares ofRs.50 lacs in Ansal Seagull SEZ Developers Limited.

NOTES

(i). The management is of the opinion that in the majority of the cases, claims will be successfully resisted or settled out of court on payment of nominal compensation.

(ii). As regards income / wealth tax demands of Rs 782 lacs (Previous year Rs.769 lacs) disputed by the Company are concerned, similar demands have been set aside by the Appellate Authorities in most of the cases in the past.

(iii). In respect of block assessment for the year 1st April, 1989 to 12* February, 2000, wherein cross appeals have been filed by the Company and the tax department, Income Tax Appellate Tribunal (ITAT) has given full relief to the Company and rejected the departments grounds of appeal and tax claim of Rs. 4,409 lacs. The tax department has gone for further reference to the High Court. The Company, based on an arbitration award, had accounted for income of Rs. 4,200 lacs in the year 2002-03 and paid/provided income tax accordingly. The contingent liability not provided in the accounts in respect of block assessments is estimated at Rs1884 lacs. The Company has been legally advised that it has a good case to succeed in the High Court.

(iv). The Company has received show-cause notices from the Service tax Department amounting to Rs.757 lacs (Previous year Rs.568 lacs) payable up to the year 2009-2010. The Company has been advised that it has a good case to get the demand set aside and accordingly the company has submitted its reply protesting the demand.

3. a) The Company, as a matter of policy, considers all anticipated costs including land cost relating to the projects as part of the project cost for determining the profitability of each of the projects. However, owing to some practical difficulties involved/the Company has not been able to acquire a portion of land for one of the projects and the same will be considered as and when acquired.

b) With regard to accounting for borrowing costs likely to be incurred in future, the Company is following the same accounting policy as consistently followed in the past, since having regard to the uncertainty of means of financing the project and the relevant cash flow in future, it is not possible to arrive at a precise estimate of the borrowing costs likely to be incurred in future in relation to each specific project.

4. Policies have been consistently followed in the past in the preparation of accounts duly audited and accepted in respect of (a) project specific advertisement costs, (b) administration and payroll expenses incurred for marketing staff, (c) brokerage paid to dealers, (d) interest paid to customers on refund of customer advances on delayed project The Company has switched over to new accounting policies in respect of each of these items by charging off to profit and loss account, as against hitherto, policy of considering them as part of project cost. The new accounting policies have been adopted w.e.f. 01.04.2009 for the year ended 3103.2010.

5. The Company has claimed exemption of Rs.3408 lacs for the year u/s 80 IA of the Income Tax Act, 1961, being tax profits arising out of sale of Industrial Park units, pending the notification of the same by CBDT based on the opinion of senior counsel that its application satisfies all the conditions specified in the said scheme of Industrial Park.

6. (a) Total advances include Rs.36624 lacs given to land owning companies/collaborators/others for purchase of land parcels/ others for the business of the Company. Such advances are given in respect of ongoing transactions and are regarded as being in the normal course of business.

b) The Company is carrying project inventory of Rs. 16675 lacs for Group Housing Project in Greater Noida. Due to downward trend in the market, the Greater Noida Industrial Development Authority (GNIDA) announced a Scheme whereby the developers have option to accept project on a smaller piece of land equivalent to the amount paid and surrender balance project land subject to some deductions. The Company has applied to the Authority conveying its intention to develop the project under this Scheme and is awaiting its approval. Necessary adjustments will be carried out upon receipt of approval from the Authority and management is of the view that there is no impairment in the value of land/project.

c) The Company has entered into a Settlement with one of its collaborator for three projects and paid a total consideration of Rs. 11750 lacs (Out of this Rs.6280 lacs was paid as compensation for financial and business loss) for taking over of one Group Housing Project. This includes the consideration for land, development work and all rights, title and interest in this Group Housing Project wholly and exclusively in favour of the company as also settlement of claims and counter claims on all accounts in this regard. The Settlement Deed has been further ratified by way of an Arbitration Award. The Company has considered the entire amount paid pursuant to the Award as part of the Project Cost since the management considers such settlement as arising in the normal course of business for purchase of collaborators right, project land and consequently transfer of license in the name of the Company.

d) Provision for amounts relating to earlier years Rs. 2104 lacs represents impact of additional cost of land, internal and external development charges, which relate to earlier years. These have been provided for and corresponding amount has been withdrawn from reserves.

e) For Sundry creditors of Rs. 19199 lacs, the Company is taking all necessary action to arrange confirmations / reconciliations.

7. Deferred Tax Adjustments

Deferred Tax charge of Rs 877.35 lacs arising on account of timing differences as per Accounting Standard-22 for the current year (Previous year deferred tax credit (net) of Rs. 114.73 lacs) has been recognized in the accounts. Calculation of Deferred Tax Liability (Net) as on 31 st March, 2010 is as given below:

8. Leases

The Company has taken vehicles on non-cancelable operating lease. The future minimum lease payments in respect of the same are as under:

It has also taken houses on cancelable lease for its employees and for office use. The rent paid during the year and charged to the Profit & Loss Accountforsuch leases is Rs.12.59 lacs (Previous year Rs.29.23 lacs).

9. Gratuity and Leave Encashment

Gratuity (being partly administered by a Trust) is computed as 15 days salary, for every completed year of service or part thereof and is payable on retirement/termination/resignation. The Gratuity plan for the Company is a defined benefit scheme where annual contributions as per actuarial valuation are charged to the Profit & Loss Account.

The Provident Fund is a defined contribution scheme whereby the Company deposits an amount determined as a fixed percentage of basic pay with the Regional Provident Fund Commissioner.

The Company also has a leave encashment scheme with defined benefits for its employees. The Company makes provision for such liability in the books of accounts on the basis of year end actuarial valuation. No fund has been created for this scheme.

The following table summaries the components of net benefit expense recognized in the profit and loss account and the funded status and amounts recognized in the balance sheet for the respective plans.

Profitand Loss Account

Net employee benefit expense

* The amount of Rs.42.56 lacs was paid outside the trustfund which is included in the above benefit paid ** The amount of Rs.62.97 lacs was paid outside the trustfund which is included in the above benefit paid. *** The amount of Rs.4.58 lacs was paid outside the trust fund which is included in the above benefit paid.

10. Stock Options

On termination of Ansal API Employees / Directors Stock Options Scheme, 2006 (ESOS), Rs Nil (Previous year Rs.136.52 lacs) charged to the Profit & Loss Account in the earlier years on account of compensation expenses has been written backand included in Other Income in the Profit & Loss Account.

Reversal of forfeiture income, electricity charges, interest received, rent received and others arising and recognized during the year owing to errors/omissions in the preparation of financial statements of earlier years for these items.

b) Cost of construction includ essales can celled/ surrender sofRs. 1498. 06 lacs (PreviousyearRs.2019.81lacs) relate to sale made in the earlier years. The cost of sales amounting to Rs.1310.02 (Previous year Rs. 1170.00 lacs) has been included in the closing stock. The net impact is a loss of Rs.188.04 lacs (Previous year of Rs. 849 lacs) charged to the Profit and Loss Account. Accretion to Stock also includes Rs. Nil (Previous year Rs. 748.44 lacs) accounted for on reconciliation of plots sold in projects completed in the earlieryears.

11. Segment Reporting

a) Having regard to integrated nature of real estate development business of the Company, the disclosure requirement of "Segmental Reporting" pursuant to Accounting Standard (AS-17) is not applicable.

b) The Companys windmill power project, in terms of revenue and assets employed, is not a reportable segment as perthe Accounting Standard AS-17 on Segment Reporting.

12(A). Related Party Transactions in accordance with Accounting StandardAS-18 (i) Names of related parties and description of relationship:

Subsidiary Company Shareholding

Delhi Towers Ltd. 100% Subsidiary of API L

Star Estates Management Ltd. 100% Subsidiary of API L

Ansal IT City & Parks Ltd. 66.23% Subsidiary of APIL Ansal SEZ Projects Ltd. 51 % Subsidiary of APIL

Ansal API Infrastructure Ltd. (Formerly Ansal -Urban InfrastructureLtd.) 100% Subsidiary of APIL

Star Facilities Management Ltd. 100% Subsidiary of APIL

Ansal API Power Ltd. 100% Subsidiary of API

Ansal API Affordable Homes Ltd 100% Subsidiary of API L Ansal Hi-Tech Townships Ltd. 54.93% Subsidiary of APIL

(ii) Step down Subsidiaries:

Subsidiary Company Shareholding

Ansal Condominium Ltd 100% Subsidiary of Delhi Towers Ltd.

Aabad Real Estates Ltd. 100% Subsidiary of Ansal Hi-tech Townships Ltd.

Anchor InfraprojectsLtd. 100% Subsidiary of Ansal Hi-tech Townships Ltd.

Bendictory Realtors Ltd. 100% Subsidiary of Ansal Hi-tech Townships Ltd.

Caspian Infrastructure Ltd. 100% Subsidiary of Ansal Hi-tech Townships Ltd.

Celestial Realtors Ltd. 100% Subsidiary of Ansal Hi-tech Townships Ltd.

Chaste Realtors Ltd. 100% Subsidiary of Ansal Hi-tech Townships Ltd.

Cohesive Constructions Ltd. 100% Subsidiary of Ansal Hi-tech Townships Ltd.

Cornea Properties Ltd. 100% Subsidiary of Ansal Hi-tech Townships Ltd. Creative Infra Developers Ltd. 100% Subsidiary of Ansal Hi-tech Townships Ltd.

Decent Infratech Ltd. 100% Subsidiary of Ansal Hi-tech Townships Ltd.

Diligent Realtors Ltd. 100% Subsidiary of Ansal Hi-tech Townships Ltd.

Divinity Real Estates Ltd 100% Subsidiary of Ansal Hi-tech Townships Ltd.

Einstein Realtors Ltd. 100% Subsidiary of Ansal Hi-tech Townships Ltd.

Emphatic Realtors Ltd. 100% Subsidiary of Ansal Hi-tech Townships Ltd.

Harapa Real Estates Ltd. 100% Subsidiary of Ansal Hi-tech Townships Ltd.

InderlokBuildwell Ltd. 100% Subsidiary of Ansal Hi-tech Townships Ltd.

Kapila Buildcon Ltd. 100% Subsidiary of Ansal Hi-tech Townships Ltd.

KshitizRealtech Ltd. 100% Subsidiary of Ansal Hi-tech Townships Ltd.

Kutumbkam Realtors Ltd. 100% Subsidiary of Ansal Hi-tech Townships Ltd.

Lunar Realtors Ltd. 100% Subsidiary of Ansal Hi-tech Townships Ltd.

Marwar Infrastructure Ltd. 100% Subsidiary of Ansal Hi-tech Townships Ltd.

Muqaddar Realtors Ltd. 100% Subsidiary of Ansal Hi-tech Townships Ltd.

Paradise Realty Ltd. 100% Subsidiary of Ansal Hi-tech Townships Ltd.

Parvardigaar Realtors Ltd. 100% Subsidiary of Ansal Hi-tech Townships Ltd.

Pindari Properties Ltd. 100% Subsidiary of Ansal Hi-tech Townships Ltd.

Pivotal Realtors Ltd. 100% Subsidiary of Ansal Hi-tech Townships Ltd.

Plateau Realtors Ltd. 100% Subsidiary of Ansal Hi-tech Townships Ltd.

Retina Properties Ltd. 100% Subsidiary of Ansal Hi-tech Townships Ltd.

Sarvodaya Infratech Ltd. 100% Subsidiary of Ansal Hi-tech Townships Ltd.

Sidhivinayaklnfracon Ltd.100% Subsidiary of Ansal Hi-tech Townships Ltd.

Shohrat Realtors Ltd. 100% Subsidiary of Ansal Hi-tech Townships Ltd.

Superlative Realtors Ltd.100% Subsidiary of Ansal Hi-tech Townships Ltd.

Taqdeer Realtors Ltd. 100% Subsidiary of Ansal Hi-tech Townships Ltd.

Thames Real Estates Ltd. 100% Subsidiary of Ansal Hi-tech Townships Ltd.

Auspicious Infracon Ltd. 100% Subsidiary of Ansal Hi-tech Townships Ltd.

Haridham Colonizers Ltd. 100% Subsidiary of Ansal SEZ Projects Ltd.

(iii) Interest in Joint Ventures:

The Companys interest in jointly controlled entities is given below:

Joint Venture Company Shareholding

Green Max Estates (P) Ltd. 50% shareholding

Ansal Mittal Township (P) Ltd. 50% shareholding Ansal Landmark Township (P) Ltd.* 49.38% shareholding

Ansal Seagull SEZ Developers Ltd. 50% shareholding

Ansal Lotus Melange Pvt. Ltd. 50% shareholding

Ansal Township Infrastructure Ltd. 49.50% shareholding

*0.62% shareholding is with Promoter of API L

(iv) Associates

The following are the enterprises where common control exists:- Name of Associates

AmbaBhawani Properties Pvt. Ltd.

Ansal Colonisers & Developers Pvt. Ltd.

Ansal Housings Estates Pvt. Ltd.

Ambience Hospitality Pvt. Ltd.

Ansal Infrastructure Projects Ltd.

Ansal Projects & Developers Ltd.

ApnaGhar Properties Pvt. Ltd.

Badrinath Properties Pvt. Ltd.

Bajrang Realtors Pvt. Ltd.

Chamunda Properties Pvt. Ltd.

Chandi Properties Pvt. Ltd.

Chiranjiv Investments Pvt. Ltd.

Kalka Properties Pvt. Ltd.

Naurang Investment & Financial Services Pvt. Ltd.

New Line Properties & Consultants Pvt. Ltd.

Plaza Software Pvt. Ltd.

Prime Golf Ranking Pvt. Ltd.

Prime Maxi Promotion Service Pvt. Ltd.

(Formerly Prime Maxi Mall Management Pvt. Ltd.)

Sampark Hotels Pvt. Ltd.

Satrunjaya Darshan Construction Co. Pvt. Ltd.

Singa Real Estates Ltd.

Delhi Towers & Estates Pvt. Ltd.

Sithir Housing & Constructions Private Ltd.

Winsum Software Pvt. Ltd.

Medi Tree Infrastructure Ltd.

ZameerRealtorsPvt.Ltd.

Ansal Infrastructure Developers Ltd.

Ansal Township Developers Ltd.

Augustan Infrastructure Pvt. Ltd.

Chakradhari Properties Private Ltd.

DurgaBuildtech Private Ltd.

Gauri Realtors Private Ltd.

GirijaShankar Properties Private Ltd.

KatraBuildtech Private Ltd.

Katra Real Estates Private Ltd.

Katra Realtors Private Ltd.

Pragati Techno Build Private Ltd.

SatnamBuildtech Private Ltd.

Ubiquity Realtors Private Ltd.

Vishnu Real Estates Private Ltd.

Yamnotri Properties Private Ltd.

Eternity Real Estates Private Ltd.

Euphoric Properties Private Ltd.

Pervasive Properties Private Ltd.

Sarvatra Realtors Private Ltd.

Sopanam Realtors Private Ltd.

Sputnik Realtors Private Ltd.

Sarvottam Realtors Private Ltd.

AnsalMultiproducts(SEZ)Ltd.

API India Realty Private Ltd.

Ansal - Urban Infrastructure Developers Ltd.

Arunodayalnfraprojects Private Ltd.

Banyan Infratech Private Ltd.

Blessing Real Estates Private Ltd.

Blossom Townships Private Ltd.

Canyon Realtors Private Ltd.

Darwin Realtors Ltd.

Colorado Properties Private Ltd.

Galaxy Infracon Ltd.

Indigo Infratech Private Ltd.

Lord Krishna Infraprojects Ltd.

Magus Realtech Private Ltd.

Mercury Infratech Private Ltd.

Niagara Realtors Private Ltd.

Parisar Realtors Private Ltd.

Rainbow Infratech Private Ltd.

Saubhagya Real Estates Private Ltd.

Sushant Realtors Private Ltd.

Quest Realtors Private Ltd.

Ansal Urban Township Developers Private Ltd.

Ansal Urban Condominiums Private Ltd.

Caliber Properties Private Ltd.

Ansal API Logistics Ltd.

BrajaDham Construction Private Ltd.

Ecobase Land Developers Private Ltd. Ishatvam Developers Private Ltd. Sanraj Associates Private Ltd. Utsav Hospitality & Clubs Private Ltd Knowledge Tree Infrastructure Ltd.

(v) Associates in which there is "Significant Influence"

Name of Associates

Faber Star Facilities Management Ltd.

Ansal Colours Engineering SEZ Ltd.

{FormerlyAnsal Kamdhenu Engineering SEZ Ltd.}

Dharti Realtors Private Ltd.

Chandra Maulishwar Properties Private Ltd.

Alaknanda Realtors Private Ltd.

JMVEcoteck Developers Ltd.

Lotus Infratech Private Ltd.

Ansal Retail Properties Private Ltd.

UEM Builders-Ansal API Contracts Private Ltd.

Decorous Realtors Private Ltd.

Bhagirathi Realtors Private Ltd.

Icon Buildcon Private Ltd.

PrithviBuildtech Private Ltd.

Vasundhra Realtors Private Ltd.

Ansal Theatres &ClubotelsPvt. Ltd.

Ecoland Developers Private Ltd.

 
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