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Notes to Accounts of Kaushalya Infrastructure Development Corpn.Ltd.

Mar 31, 2015

Note 1: CORPORATE INFORMATION

Kaushalya Infrastructure Development Corporation Limited (the company) is a public limited company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on the Bombay Stock Exchange and National Stock Exchange. The company is primarily engaged in executing construction contracts relating to infrastructure and real estate developments. Moreover, it carries on the business in hotel segment, hotel industry and is also engaged in acquiring and purchasing of land. The company's services are limited to domestic markets only.

Note 2 : SHARE CAPITAL

(i) Rights, preferences and restrictions attached to equity shares:

The Company has issued only one class of equity shares having a par value of Rs. 10/- per share. Each holder of equity shares is entitled to one vote per share held. The dividend, if any, proposed by the Board of Directors is subject to approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. 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.

Note 3 : ADDITIONAL INFORMATION OF THE FINANCIAL STATEMENTS

3.1 : Contingent Liabilities and Commitments to the extent not provided for (Amount in Rs.)

Sl. Particulars As on As on No. 31.03.2015 31.03.2014

1. a. Performance guarantees issued by the banks to various Government 50,297,983 47,623,983 Authorises, for which the Company has provided counter guarantee against which fixed deposit receipts have been pledged by the Company.

b. Performance Guarantee issued on behalf of other company against 8,674,000 8,674,000 which fixed deposit receipts have been pledged by the Company ` c. Bank Interest Reversed 4,542,695 Nil

2. Claims not acknowledged as debts

Income Tax Demand Nil 3,771,602 (Assessment Year 2004-05)

Income Tax Demand 90,875 72,381 (Assessment Year 2005-06)

Income Tax Demand Nil 923,573 (Assessment Year 2006-07)

Income Tax Demand 2,846,864 4,098,684 (Assessment Year 2007-08)

Income Tax Demand 3,026,950 Nil (Assessment Year 2009-10)

Income Tax Demand 3,761,030 3,761,030 (Assessment Year 2010-11)

Income Tax Demand 190,580 4,165,834 (Assessment Year 2011-12)

Income Tax Demand 5,142,880 259,290 (Assessment Year 2012-13)

3.2 : Disclosures required under Section 22 of the Micro, Small and Medium Enterprises Development Act, 2006 The Company is in the process of identifying the suppliers, who would be covered under the Micro, Small and Medium Enterprises Development Act, 2006. As confirmed by the management, the company has not yet received any information about such registration from the vendors and such information will be provided as and when confirmation is received from them. However, as regards the same, no documentary evidence has been found during the course of audit.

3.3 : Disclosure as per clause 32 of the listing agreement

(Loans and advances in the nature of loans given to subsidiaries, associates and others and investment in shares of the Company by such parties)

The loans and advances in the nature of advances given by the company to its Subsidiaries and Associates, amounts to Rs. 482,462,888/-, in aggregate as on 31st March 2015. The details of the same have been provided below:

3.4 : Earning in foreign exchange (net of TDS): Nil

3.5 : Amount remitted in foreign currency during the year on account of dividend: Nil

3.6 : Current assets

In the opinion of the Board, the current assets have value on realization in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet. However, the following are the areas of concern:

a Outstanding Sundry debtors.

Out of total Sundry Debtors of Rs. 779,639,664/-, an amount of Rs. 737,506,104/- is outstanding since long, and out of which several debtors are under dispute.

b. Short-term Advances:

The Company had advanced a net amount of Rs. 34,474,964/- to Flare Realty Engineers Private Limited, for meeting its working capital requirements. However, the work for execution of part of the work at Sardasahar, Rajasthan of Nagar Palika project was awarded to the Company. Thereafter, Flare Realty Engineers Private Limited asked for security deposit against the said work and requested to transfer the working capital advance to Security Deposit. The Company has accepted the condition and agreed to transfer the working capital advance to Security Deposit.

3.7 : Statutory Compliances

The following areas are of concern :

a. Service Tax Payable: Following information is worth noting in this regard-

i. The company opted for the VCES, 2013 for the service tax payable corresponding to the period from April' 2009 to December, 2012. The total liability of the service tax for the said period stood to Rs. 1,59,43,004/-, payable in two equal installments on or before 31st Dec, 2013 and 30th June, 2014 respectively. The company has paid Rs. 79,72,657/- i.e 50% of declared liability till date. In, the mean time, the Company has received a show cause cum demand notice from Service Tax Commissionerate, Kolkata for Rs. 4,21,84,307/- for the said period. However, the hearing of the matter is still pending.

ii. Apart from the afore-mentioned amount due under VCES, 2013, the balance amount of Service Tax which is due to be paid is Rs. 1,04,51,981/-

iii. An amount of Rs. 14,01,229/- has been shown as Service Tax accrued but not due for payment. This amount comprises of the tax accrued on or before 1st July, 2011, which is to be paid on receipt basis,but not paid till date as no payment has been recovered from the debtors against the same since F.Y. 2010-11.

3.8 : Dilution of holding:

A) During the current financial year, the shareholding of the company has diluted in one of its subsidiary : Kaushalya Township Private Limited in which shareholding reduced from 73.49% to 48.69%. However, Kaushalya Township Private Limited continue to be the step-down subsidiary of the company as the company holds more than 50% of the shareholding through its other subsidiary.

B) Details of companies which have cease as subsidiary and become associates during the year under review as under:

a) Orion Abasaan Private Limited by reducing shareholding from 72.50% to 48.33% on 28th day of March, 2015

b) Kaushalya Nirman Private Limited by reducing shareholding from 68.66% to 46% on 31st ay Day of March, 2015

3.9 : Fixed Deposits:

All the fixed deposits have been made against the Bank Guarantee and under lien with the corresponding bank.

3.10 : Interest on credit cards:

The company has paid interest to the tune of Rs. 1,67,381/- on delayed payment of credit cards of the directors.

Note 4 : During the year borrowing cost is not capitalized.

Note 5 : Related Parties*, Related Party Transactions and Balances receivable/payable as at the end of the year

Related Party Disclosures as required by AS 18 issued by ICAI

I. Parties Where Control Exists Subsidiaries

1 Bengal Kaushalya Nirman Ltd.

2 Bengal KDC Housing Development Ltd.

3 Kaushalya Energy (P) Ltd.

Step Down Subsidiaries

4 Kaushalya Township (P) Ltd.

5 Azur Solar KDC (P) Ltd.

II. Joint Ventures

Jointly Controlled Entities

1 KIDCO - NACC

III. Associates

1 Kaushalya Nirman (P) Limited

2 Orion Abasaan (P) Limited

IV. Key Management Personnel :

1 Mr. Prashant Mehra, Managing Director

2 Mr. Ramesh Kumar Mehra, Chairman

3 Mr. Mahesh Mehra, Whole-time Director

4 Mr. Parag Keshar Bhattacharjee, Independent Director

5 Mr. Rajesh Kumar Agarwal, Independent Director

6 Mrs. Minoti Nath, Women Independent Director

V. Other Related Parties with whom the company had transactions during the year

Relatives of Key Management Personnel :

1 Mr Kartik Mehra

2 Mr Karan Mehra

3 Mrs. Neeru Mehra

4 Ramesh Kumar Mehra HUF

Note 6: Other information:

a. Projects in hand:

The company is having three major running projects, construction of integrated school and hostel complex for Westing House Saxby Farmer Ltd., contract value of Rs. 7.25 Cr., Mega Housing project for EWS, LIG & MIG through PPP in Sardarsahar, Rajasthan from Rajasthan Avas Vikas & Infrastructure Ltd. of Rs. 51.66 Cr & Construction of Swarigarh SHP from Uttarakhand Jal Vidyut Nigam (awarded to KIDCO-NACC Consortium) contract value Rs. 14.83 Cr. In these projects, revenue to the tune of Rs. 7.60 Crs. has already been recognized upto the year ending 31.03.2015.

b. Work order received from Power Department, Sikkim of Rs. 4,55,20,000/- in the year 2004-05. The company has completed the work to the tune of Rs. 2,92,43,450/- but it has not been certified by the said department and subsequently no payment has been released by them against the aforesaid work done. The reason for not receiving the funds as stated by the management is due to non availability of fund under the APDRP scheme (the scheme of the project) in Sikkim.

c. The Company had filed a claim with their client NPCC Ltd. the client in turn raised the claim to their principal NTPC and entered into arbitration via P.M.A. The arbitration has awarded a claim of Rs. 8,55,23,452/- against a demand of Rs. 77,66,336/- and against this award the principal has appealed before the Secretary of the P.M.A. As per term the claim received by NPCC shall be passed on to the company after deduction of their margins as per MOU.

d. It is also observed that the company has few debtors under dispute and in case where any order is received against the said claims, the company may prefer further appeal to the higher authority.

e. The bankers of the Company are considering a second restructuring which is under review by lead banker The State Bank of India. The SBI has also reversed part of earlier charged interest of Rs. 45.42 lacs in account. This has also resulted/refiected in lower finance cost in last quarter 31.03.2015. However, Bank shall have the right to recompense the reliefs/sacrifices/waivers extended upto this restructuring package.

Note 7 : Previous Year Figures

Previous year's figures have been regrouped / reclassified wherever necessary to correspond with the current year's classification / disclosure.


Mar 31, 2014

Note 1 : ADDITIONAL INFORMATION OF THE FINANCIAL STATEMENTS

1.1: Moneys received against share warrants

The Board of Directors of the Company at their meeting held on 31st August, 2011 and as approved at its Annual General Meeting held on 30th September, 2011 have resolved to create, offer, issue and allot up to 15,025,000 warrants, convertible into 15,025,000 equity shares of Rs. 11/- each on a preferential allotment basis, pursuant to Section 81(1A) of the Companies Act, 1956, at a conversion price of Rs. 11/- per equity share of the Company, arrived at in accordance with the SEBI Guidelines in this regard and subsequently these warrants were allotted on (date) to the promoters and others. It is noted that 100% application money amounting to Rs. 165,275,000/- was received from them before 21.05.2013. The Company converted said warrants into equivalent number of shares on 15.05.2013.

(Amount inRs) 1.2. Contingent Liabilities and Commitments to the extent not provided for

Sl.No. Particulars As on 31.03.2014 As on 31.03.2013

1.a.Counter guarantees given to Bankers to obtain various Bank Guarantees 56,297,983 31,070,270

against which fixed deposit receipts have been pledged by the Company.

b.Performance Guarantee given on behalf of Joint Venture Entities Nil 14,812,525

c.Share of the company in the Contingent Liability of Joint Venture Entities Nil Nil

d.Capital Commitment of the company in Joint Venture Entities Nil Nil

e.Share of the company in the Capital Commitment of the Joint Venture Nil Nil Entities

2.Claims not acknowledged as debts

Income Tax Demand (Assessment Year 2004-05) 3,771,602 3,771,602

Income Tax Demand (Assessment Year 2005-06) 72,381 72,381

Income Tax Demand (Assessment Year 2006-07) 923,573 923,573

Income Tax Demand (Assessment Year 2007-08) 4,098,684 4,098,684

Income Tax Demand (Assessment Year 2010-11) 3,761,030 3,761,030

Income Tax Demand (Assessment Year 2011-12) 4,165,834 NIL

Income Tax Demand (Assessment Year 2012-13) 2,59,290 NIL

1.3 : Disclosures required under Section 22 of the Micro, Small and Medium Enterprises Development Act, 2006

The Company is in the process of identifying the suppliers, who would be covered under the Micro, Small and Medium Enterprises Development Act, 2006. As confirmed by the management, the company has not yet received any information about such registration from the vendors and such information will be provided as and when confirmation is received from them. However, as regards the same, no documentary evidence has been found during the course of audit.

1.4 : Disclosure as per clause 32 of the listing agreement (loans and advances in the nature of loans given to subsidiaries, associates and others and investment in shares of the Company by the such parties)

The loans and advances in the nature of advances given by the company to its subsidiaries, amounts to Rs. 51,78,33,183/-, in aggregate as on 31st March, 2014. The details of the same have been provided below :

1.5 : Earning in foreign exchange (net of TDS): Nil

1.6 : Amount remined in foreign currency during the year on account of dividend: Nil

1.7 : Current assets

In the opinion of the Board, the current assets have value on realization in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet. However, the following are the areas of concern.

A Outstanding Sundry debtors.

Out of total Sundry Debtors of Rs. 763,680,548/-, an amount of Rs. 670,125,891/- is outstanding since long, and out of which several debtors are under dispute.

b. Sundry Debit/(Credit) Balance W/Off :

The total sundry debit balances, which had been written off during the financial year 2013-14 amounted to Rs. 41,216,937/- out of which, debit balance to the tune of Rs. 28,736,687/- had been netted off with the credit balance of the same amount and the balance had been shown under the head of other expenses as Sundry Debit/ (Credit) Balance W/Off, in the statement of Profit and loss.

c. Short-term Advances:

The Company had advanced a net amount of Rs. 19,063,637/- to Flare Realty Engineers Private Limited, which was incorporated as a step-down subsidiary of the company, for meeting its working capital requirements. However, Flare Realty Engineers Private Limited has subsequently raised additional equity from outsiders to finance the project further and hence it ceased to be the subsidiary of the company as on 31st March, 2014.

Note 1.8: Statutory Compliances

The following areas are of concern :

a. Service Tax Payable: Following information is worth noting in this regard-

i. The company opted for the VCES, 2013 for the service tax payable corresponding to the period from April'' 2009 to December'' 2012. The total liability of the service tax for the said period stood to Rs. 15,943,004/-, payable in two equal installments on or before 31st Dec, 2013 and 30th June, 2014 respectively. The company has paid Rs. 7,972,657/- till date and the balance is due to be paid within 30th June, 2014.

ii. Apart from the afore-mentioned amount due under VCES, 2013, the balance amount of Service Tax which is due to be paid in the current Financial Year is Rs. 6,109,751/-

iii. An amount of Rs. 1,401,229/- has been shown as Service Tax accrued but not due for payment. This amount comprises of the tax accrued on or before 1st July, 2011, which is to be paid on receipt basis, but not paid till date as no payment has been recovered from the debtors against the same since F.Y. 2010-11.

Note 1.9: Prior period items

An amount of Rs. 2,197,861/- against the BG Commission, pertaining to the prior period has been included in the Finance Costs.

Note 1.10: Dilution of holding:

During the current financial year, the shareholding of the company has diluted in some of the subsidiaries, the details of which is as follows:

a. Orion Abasaan Private Limited: Shareholding reduced from 96.67% to 72.50%

b. Kaushalya Township Private Limited: Shareholding reduced from 99.01% to 73.49%

c. Kaushalya Nirman Private Limited: Shareholding reduced from 97.87% to 68.66%

Note 1.11: Fixed Deposits:

All the fixed deposits have been made against the Bank Guarantee and under lien with the corresponding bank.

Note 1.12: Interest on credit cards:

The company has paid huge amount of interest (to the tune of Rs. 454,155/-) on delayed payment of credit cards of the directors.

2 : During the year borrowing cost is not capitalized.

3: Related Parties*, Related Party Transactions and Balances receivable/payable as at the end of the year

I. Parties Where Control Exists Subsidiaries

1 Bengal Kaushalya Nirman Ltd.

2 Bengal KDC Housing Development Ltd.

3 Kaushalya Energy (P) Ltd.

4 Kaushalya Nirman (P) Ltd.

5 Kaushalya Township (P) Ltd.

6 Orion Abasaan (P) Ltd.

Step Down Subsidiaries

7 Azur Solar KDC (P) Ltd.

II. Joint Ventures

Jointly Controlled Entities 1 New Asian Construction Co.

III. Key Management Personnel :

1 Mr. Prashant Mehra, Managing Director

2 Mr. Ramesh Mehra, Director

3 Mr. Mahesh Mehra, Whole-time Director

4 Mr. Parag Keshar Bhattacharjee, Independent Director

5 Mr. Rajesh Kumar Agarwal, Independent Director

6 Mr. Saktipada Banerjee, Independent Director

IV Other Related Parties with whom the company had transactions during the year

a) Relatives of Key Management Personnel :

1. Mr. Kartik Mehra

2. Mr. Karan Mehra

3. Mrs. Neeru Mehra

b) Associates Company:

1 Keleen worth Marketing Pvt. Ltd.

2 Mahanti Engineers Pvt. Ltd.

3 Sunkissed Merchandise Pvt. Ltd.

Note 4 : Other information :

a. Projects in hand:

The company is having three running projects, construction of integrated school and hostel complex for Westing House Saxby Farmer Ltd., contract value Rs. 7.25 crs., Mega Housing project for EWS, LIG & MIG through PPP in Sardarsahar, Rajasthan from Rajasthan Avas Vikas & Infrastructure Ltd. of Rs. 51.66 cr and construction of Swarigarh SHP from Uttrakhand Jal Vidyut Nigam (awarded to KIDCO-NACC consortium) contract value Rs. 14.83 crs. In these projects, revenue to the tune of Rs. 5.30 crs has already been recognized upto the year ending 31.03.2014.

b. Work order received from Power Department, Sikkim of Rs. 4,55,20,000/- in the year 2004-05. The company has completed the work to the tune of Rs. 2,92,43,450/- but it has not been certified by the said department and subsequently no payment has been released by them against the aforesaid work done. The reason for not receiving the funds as stated by the management is due to non availability of fund under the APDRP scheme (the scheme of the project)in Sikkim.

c. The Company had filed a claim with their client NPCC Ltd. the client in turn raised the claim to their principal NTPC and entered into arbitration via P.M.A. The arbitration has awarded a claim of Rs. 8,55,23,452/- against a demand of Rs. 77,66,336/- and against this award the principal has appealed before the Secretary of the P.M.A. As per term the claim received by NPCC shall be passed on to the company after deduction of their margins as per MOU.

d. It is also observed that the company has few debtors under dispute and in case where any order is received against the said claims, the company may prefer further appeal to the higher authority.

Note 5 : Previous Year Figures

The Revised Schedule VI has become effective from 1 April, 2011 for the preparation of financial statements. This has significantly impacted the disclosure and presentation made in the financial statements. Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure.


Mar 31, 2013

Note 1: CORPORATE INFORMATION

Kaushalya Infrastructure Development Corporation Limited (the company) is a public company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on the Bombay Stock Exchange and National Stock Exchange. The company is primarily engaged in executing construction contacts relating to infrastructure developments.

Moreover, it also carries on the business in hotel segment and hotel industry and is also engaged in acquiring and purchasing of land. The company''s services are limited to domestic markets only.

2.1: Moneys received against share warrants

The Board of Directors of the Company at their meeting held on 31st August, and as approved at its Annual General Meeting held on 30th September, 2011 have resolved to create, offer, issue and allot up to 15,025,000 warrants, convertible into 15,025,000 equity shares of Rs. 11/- each on a preferential allotment basis, pursuant to Section 81(1A) of the Companies Act, 1956, at a conversion price of Rs. 11/- per equity share of the Company, arrived at in accordance with the SEBI Guidelines in this regard and subsequently these warrants were allotted on (date) to the promoters and others. It is noted that 74.72% application money amounting to Rs. 123,495,000/- was received from them. The warrants may be converted into equivalent number of shares on payment of the balance amount at any time on or before 21.05.2013. In the event the warrants are not converted into shares within the said period, the Company is eligible to forfeit the amounts received towards the warrants.

2.2: Disclosures required under Section 22 of the Micro, Small and Medium Enterprises Development Act, 2006

The Company is in the process of identifying the suppliers, who would be covered under the Micro, Small and Medium Enterprises Development Act, 2006. As confirmed by the management, the company has not yet received any information about such registration from the vendors and such information will be provided as and when confirmation is received from them. However, as regards the same, no documentary evidence has been found during the course of audit.

2.3: Disclosures as per clause 32 of the listing agreement (Loans and advances in the nature of loans given to subsidiaries, associates and others and investment in shares of the Company by such parties)

2.4: Earning in foreign exchange (net of TDS): Nil

2.5: Amount remitted in foreign currency during the year on account of dividend: Nil

2.6: Current assets

a. In the opinion of the Board, the current assets have value on realization in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet. However, the following are the areas of concern.

b. Outstanding Sundry debtors.

Out of total Sundry Debtors of Rs. 95,02,45,551/-, an amount of Rs. 62,10,27,492/- is outstanding since long, and out of which several debtors are under dispute. Note 26: During the year borrowing cost is not capitalized.

Note 3: Other information:

a. Projects in hand:

The company is left with two running projects one namely Westing House Saxby Farmer Ltd., contract value Rs. 7.25 crs. and Uttrakhand Jal Vidyut Nigam contract value Rs. 14.83 crs out of which contract revenue to the tune of Rs. 2.76 crs has already been recognized upto the year ending 31.03.2013.

b. Work order received from Power Department, Sikkim of Rs. 4,55,20,0000/- in the year 2004-05. The company has completed the work to the tune of Rs. 2,92,43,450/- but it has not been certified by the said department and subsequently no payment has been released by them against the aforesaid work done. The reason for not receiving the funds as stated by the management is due to non availability of fund under the APDRP scheme (the scheme of the project) in Sikkim.

c. The Company had filed a claim with their client NPCC Ltd. the client in turn raised the claim to their principal NTPC and entered into arbitration via P.M.A. The arbitration has awarded a claim of Rs. 8,55,23,452/- against a demand of Rs. 77,66,336/- and against this award the principal has appealed before the Secretary of the P.M.A. As per term the claim received by NPCC shall be passed on to the company after deduction of their margins as per MOU.

Note 7 Previous Year Figures

The Revised Schedule VI has become effective from 1 April, 2011 for the preparation of financial statements. This has significantly impacted the disclosure and presentation made in the financial statements. Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure.


Mar 31, 2012

Note 1: CORPORATE INFORMATION

Kaushalya Infrastructure Development Corporation Limited (the company) is a public company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on the Bombay Stock Exchange and National Stock Exchange. The company is engaged in executing construction contacts relating to infrastructure developments. The company''s services are limited to domestic markets only.

2.1: Moneys received against share warrants

The Board of Directors of the Company at their meeting held on 31st August, and as approved at its Annual General Meeting held on 30th September, 2011 have resolved to create, offer, issue and allot up to 15,025,000 warrants, convertible into 15,025,000 equity shares of Rs. 11/- each on a preferential allotment basis, pursuant to Section 81(1A) of the Companies Act, 1956, at a conversion price of Rs. 11/- per equity share of the Company, arrived at in accordance with the SEBI Guidelines in this regard and subsequently these warrants were allotted on (date) to the promoters and the 58.11% application money amounting to Rs. 96,043,750/- was received from them. The warrants may be converted into equivalent number of shares on payment of the balance amount at any time on or before 21.05.2013. In the event the warrants are not converted into shares within the said period, the Company is eligible to forfeit the amounts received towards the warrants.

2.2: Disclosures required under Section 22 of the Micro, Small and Medium Enterprises Development Act, 2006

The Company is in the process of identifying the suppliers, who would be covered under the Micro, Small and Medium Enterprises Development Act, 2006. As confirmed by the management, the company has not yet received any information about such registration from the vendors and such information will be provided as and when confirmation is received from them. However, as regards the same, no documentary evidence has been found during the course of audit.

2.3: Earning in foreign exchange (net of TDS): Nil

2.4: Amount remitted in foreign currency during the year on account of dividend: Nil

2.5: Current assets

In the opinion of the Board, the current assets have value on realization in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet.

Note 3 : Details of borrowing cost capitalized during the year: Not Applicable

Note 4: Segment reporting

The company has no separately identifiable primary and secondary segments. Therefore, AS 17: Segment reporting issued by the ICAI are not applicable to the company.

Note 5: Related Parties*, Related Party Transactions and Balances receivable/payable as at the end of the year

I. Parties Where Control Exists Subsidiaries

1 Bengal Kaushalya Nirman Ltd.

2 Bengal KDC Housing Development Ltd.

3 Kaushalya Energy (P) Ltd.

4 Kaushalya Nirman (P) Ltd.

5 Kaushalya Township (P) Ltd.

6 Orion Abasaan (P) Ltd.

Step Down Subsidiaries

7 Azur Solar KDC (P) Ltd.

II. Joint Ventures

jointly Controlled Entities

1 New Asian Construction Co.

III. Key Management Personnel:

1 Mr. PrashantMehra, Managing Director

2 Mr. Ramesh Kumar Mehra, Director

3 Mr. Mahesh Mehra, Director

4 Mr. S.N.Mehra, Director

5 Mr. ParagKesharBhattacharjee, Independent Director

6 Mr. Shankar Saraf, Independent Director

7 Mr. Rajesh Kumar Agarwal, Independent Director

8 Mr. Saktipada Banerjee, Independent Director

IV. Other Related Parties with whom the company had transactions during the year Relatives of Key Management Personnel:

1 Mr Kartik Mehra

2 Mr Karan Mehra

3 Mrs. Neeru Mehra

4 Keleenworth Marketing Pvt. Ltd.

5 Mahanti Engineers Pvt. Ltd.

6 Sunkissed Merchandise Pvt. Ltd.

Note 6 Previous Year Figures

The Revised Schedule VI has become effective from 1 April, 2011 for the preparation of financial statements. This has significantly impacted the disclosure and presentation made in the financial statements. Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure.


Mar 31, 2010

1. Current tax is determined in respect of taxable income for the year based on applicable tax rates and Laws.

2. The Company is in the process of identifying the suppliers, who would be covered under the Micro, Small and Medium Enterprises Development Act, 2006. In this process the Company has given notice to its vendors/ suppliers to inform about whether any of them are registered under the said Act. The Company has not yet received any information about such registration from the vendors. Such information will be provided as and when confirmation is received from them.

3. Disclosure on Related Party Transactions as per AS 18 on "Related party disclosures" issued by The Institute of Chartered Accountants of India.

I. Parties Where Control Exists

Subsidiaries

1 Bengal Kaushalya Nirman Ltd.

2 Bengal KDC Housing Development Ltd.

3 Kaushalya Energy (P) Ltd.

4 Kaushalya Nirman (P) Ltd.

5 Kaushalya Township (P) Ltd.

6 Orion Abasaan (P) Ltd.

II. Key Management Personnel

1 Mr. Prashant Mehra, Managing Director

2 Mr. Sidhnath Mehra, Wholetime Director

3 Mr. Ramesh Kumar Mehra, Director

4 Mr. Mahesh Mehra, Director

III. Other Related Parties

Relatives of Key Management Personnel

1 Mr. Kartik Mehra

2 Mrs. Neeru Mehra

4. Loans & Advances include advances Nil (Previous Year Nil) paid to various parties as advances for purchase of capital items.

5. The Company has reviewed the possibility of any impairment of the fixed assets of the Company in terms of the Accounting Standard AS 28 – "Impairment of Assets" issued by The Institute of Chartered Accountants of India as at the balance sheet date and is of the opinion that no such provision for impairment is required.

6. Disclosure pertaining to Accounting Standard 29 – "Provisions, Contingent Liabilities and Contingent Assets" issued by The Institute of Chartered Accountants of India. Provisions involving substantial degree of estimation in measurement are recognized when there is a present 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 to accounts. Disputed demands in respect of Income Tax, Sales Tax are disclosed as contingent liability. Payments in respect of such demands, if any, are shown as advance, till the final outcome of the matter. Contingent Assets are neither recognized nor disclosed in the financial statements.

7. In the opinion of the Board of Directors, the Current Assets, Loans and Advances have value on realization in the ordinary course of business at least equal to the amount at which they have been stated in the Balance Sheet.

8. Service Tax of Rs.24,971,552/- (Previous Year Rs. 41,632,347/-) charged on works contract is included in contract received and shown under the head income from operation.

9. Income from operation is total of contract revenue received and net profit from hotel business.

10. Previous years figure have been re-grouped and rearranged wherever necessary.

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