Notes to Accounts of Landmark Property Development Company Ltd.

Mar 31, 2018

1. Segmental Reporting

Operating segments

Ind AS 108 “Operating Segment” (“Ind AS 108”) establishes standards for the way that public business enterprises report information about operating segments and related disclosures about products and services, geographic areas, and major customers. Based on the “management approach” as defined in Ind AS 108, Operating segments are to be reported in a manner consistent with the internal reporting provided to the Chief Operating Decision Maker (CODM).The CODM evaluates the Company''s performance and allocates resources on overall basis. The Company''s sole operating segment is therefore primarily Real Estate Development (including Advisory services). Accordingly, there are no additional disclosure to be provided under Ind AS 108.

b) The Company does not have any long term commitments or material non-cancellable contractual commitments/contracts, including derivative contracts for which there were any material foreseeable losses.

26 Related party disclosure a ) Name of related parties

Parties where control exists irrespective of whether transactions have occurred or not Particulars Entities

Enterprise over which Key Managerial Personnel - Landmark Land Holdings Private Limited is able to exercise significant influence) - Ansal Landmark (Karnal) Township Private Limited

- Astir Properties Private Limited

Names of other related parties with whom transactions have taken place during the year

Key Management Personnel Shri Rajeev Kumar Nair (Chief Financial Officer)

Shri S K Chawla (Company Secretary)

Chairperson and Managing Director Shri Gaurav Dalmia (Promoter, Executive and Non Independent

Director)

Relatives of Key Managerial Personnel Smt. Sharmila Dalmia (Wife of Shri Gaurav Dalmia)

Non-Executive Directors Shri H L Agarwal (Non Independent Director)

Shri G B Rao (Independent Director)

Shri H C Dua (Independent Director)

Shri Jai Karan Kapur (Independent Director)

Smt. Sharmila Dalmia (Non Independent Director)

The estimates of future salary increases, considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market.

Significant actuarial assumption for the determination of the defined obligation are discounted rate, expected salary escalation rate and withdrawal rate. The sensitivity analyses below have been determined based on reasonably possible changes of the respective assumption occurring at the end of the reporting period, while holding all other assumptions constant.

The above information is certified by the actuarial valuer.

The discount rate is based on prevailing market yield of Govt. Bonds as at the date of valuation.

Market Risk

The Company''s activities expose it primarily to the financial risks of changes in interest rates and foreign currency exchange rates.

a) Foreign Currency risk management

The Company undertakes transactions denominated in foreign currencies; consequently, exposures to exchange rate fluctuations arise. Exchange rate exposures are managed within approved policy parameters.

The carrying amounts of the Company''s foreign currency denominated monetary assets and monetary liabilities at the end of the reporting period are as follows:

Foreign currency sensitivity analysis

The company is only exposed to the USD currency.

The following table details the company''s sensitivity to a 1% increase and decrease in the ‘Rs. against the USD. 1% is the sensitivity rate used when reporting foreign currency risk internally to key management personnel and represents management''s assessment of the reasonably possible change in foreign exchange rates. The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at the period end for a 1% change in foreign currency rates. The sensitivity analysis includes external loans. A positive number below indicates an increase in profit or equity where the ‘ strengthens 1% against the relevant currency. For a 1% weakening of the ‘ against the relevant currency, there would be a comparable impact on the profit or equity, and the balances below would be negative.

b) Interest Rate risk management

The Company is not exposed to change in market interest rate risks as company is not borrowing funds . Company is only lending the funds at fixed rate of interest and accordingly there is no exposure to variance in market rate of interest .

c) Liquidity risk management

Ultimate responsibility for liquidity risk management rests with the board of directors, which has established an appropriate liquidity risk management framework for the management of the company''s short-term, medium-term and long-term funding and liquidity management requirements. The Company manages liquidity risk by maintaining adequate reserves and by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company''s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company''s reputation.

There was no transfer between Level 1 , Level 2 and Level 3 in the period

b) Financial Assets and Liabilities measured at Amortized Cost

The carrying amount of financial assets and financial liabilities measured at amortized cost in the financial statements are reasonable approximation of their fair values since the company does not anticipate that the carrying amount would be significantly different from the value that would eventually be received or settled.

34 A Business Transfer Agreement was signed on the 2nd April 2012 between Ansal Landmark Townships Pvt. Ltd., (ALTPL); Ansal Landmark (Karnal) Township Pvt. Ltd. (ALKTPL) & Ansal Properties & Infrastructure Ltd. Pursuant to the same, advances of Rs.499,374,839/- (including accrued interest up to June 30, 2008), which Landmark Property Development Co. Ltd. (the Company) had given to ALTPL stood transferred to a new entity set up to run the Karnal project, viz. ALKTPL. Following this new arrangement, the Company was entitled to allotment of Plots, Flats in Group Housing/Row Housing/Commercial property in the ongoing residential township being developed by ALTPL at Ghaziabad and ALKTPL at Karnal, in due course. As on March 31, 2018, the remaining amount outstanding is Rs.354,591,040/-

2. First Time Ind AS Adoption Reconciliations

For all periods up to and including the year ended 31st March, 2017, the Company had prepared its financial statements in accordance with the accounting standards notified under Section 133 of the Companies Act, 2013, read together with Rule 7 of the Companies (Accounts) Rules, 2014 (‘Previous GAAP''). This note explains the principal adjustments made by the Company in restating its financial statements prepared under Previous GAAP for the following

a) Effect of Ind AS adoption on the balance sheet as at March 31, 2017 and April 01, 2016.

b) Reconciliation of total equity as at March 31, 2017 and April 01, 2016.

c) Effect of Ind AS adoption on the profit and loss for the year ended March 31, 2017.

(a) Under Previous GAAP investment made in mutual fund by the company were measured at lower of cost or fair value. Under Ind AS, the company has recognized such investments at fair value through profit and loss thus leading to increase in the value of investment in mutual fund.

(b) Under previous GAAP, deferred taxes were recognized for the tax effect of timing differences between accounting profit and taxable profit for the year using the income statement approach. Under Ind AS, deferred taxes are recognized using the balance sheet for future tax consequences of temporary differences between the carrying value of assets and liabilities and their respective tax bases. The above difference, together with consequential tax impact of the other Ind AS transitional adjustments lead to temporary differences. Deferred tax adjustments are recognized in correlation to the underlying transaction either in retained earnings or through statement of profit and loss or other comprehensive income.

(c) Under previous GAAP, actuarial gains and losses were recognized in profit or loss. Under Ind AS actuarial gains and losses form part of remeasurement of the net defined benefit liability / asset which is recognized in other comprehensive income. Consequently, the tax effect of the same has also been recognized in other comprehensive income instead of profit or loss.

# Advances of Rs 37,78,91,040/- (refer Notes 6 ) are outstanding from Private Limited Companies in which Mr. Gaurav Dalmia , Managing Director is a member/ director. Part of these balances were taken over on merger of Real Estate undertaking of OCL India Limited, the effective date being 20th December 2007 and part of these were given before Mr. Gaurav Dalmia was appointed as the Director of the company w.e.f. 29th January, 2008.

3. The comparative financial information of the Company for the transition date opening balance sheet as at 1 April 2016 included in these Ind AS financial statements, are based on the statutory financial statements prepared in accordance with the Companies (Accounting Standards) Rules, 2006 for the year ended 31 March 2016 have been restated to comply with Ind AS and in accordance with the format prescribed in MCA Circular Notification No. GSR 404(E) [F.NO.17/62/2015CLV], dated 6 April 2016.

---

Mar 31, 2016

1. There is no impairment loss of fixed assets during the current financial year.

2. Disclosures as per Section 186 of Companies Act, 2013

3. Particulars as required by Schedule V of Securities and Exchange Board of India (Listing Obligations and Disclosure requirements) Regulations, 2015:

# Advances of Rs.377,891,040/- {refer Notes to Balance Sheet-H (b)} are outstanding from Private Limited Companies in which Mr. Gaurav Dalmia, Managing Director is a member/director. Part of these balances were taken over on merger of Real Estate undertaking of OCL India Limited, the effective date being 20^th December 2007 and part of these were given before Mr. Gaurav Dalmia was appointed as the Director of the Company w. e. f. 29th January, 2008.

4. In the opinion of the Board and to the best of their knowledge and belief, the value on realization of current assets, loans and advances in the ordinary course of business would not be less than the amount at which they are stated in the Balance Sheet.

5. The Company has not received any information from suppliers or service providers, whether they are covered under Micro, Small and Medium Enterprises (Development) Act 2006. Therefore, it has not been possible to give the information required under the Act.

6. A Business Transfer Agreement was signed on the 2^nd April 2012 between Ansal Landmark Townships Pvt. Ltd., (ALTPL); Ansal Landmark (Karnal) Township Pvt. Ltd. (ALKTPL) & Ansal Properties & Infrastructure Ltd. Pursuant to the same, advances of Rs.499,374,839/- (including accrued interest up to June 30, 2008), which Landmark Property Development Co. Ltd. (the Company) had given to ALTPL stood transferred to a new entity set up to run the Karnal project, viz. ALKTPL. Following this new arrangement, the Company was entitled to allotment of Plots, Flats in Group Housing/Row Housing/ Commercial property in the ongoing residential township being developed by ALTPL at Ghaziabad and ALKTPL at Karnal, in due course. As on March 31, 2016, the remaining amount outstanding is Rs.354,591,040/-

7. Employee Benefits (AS - 15 revised)

Following data are as per the report given by the Actuary

The Principal assumptions used in actuarial valuation are as below:

- Discount rate - 7.60% p. a.

- Expected rate of future salary increase - 8% p. a.

- Attrition Rate - 2% p.a.

8. Segment Report (AS - 17)

The Company is primarily engaged in the business of Real Estate Development (including advisory services), which as per Accounting Standard on Segment Report (AS-17) is to be only reportable business segment

9. Related Party Disclosure (AS -18)

Related parties, their relationships and transactions with the above in the ordinary course of business

---

Mar 31, 2015

I) In respect of Assessment Year 2007-08 and 2008-09, the Department has not adjusted credit of tax aggregating to Rs.97,02,000/- paid by M/s. OCL India Limited and transferred to the Company arising out of De-merger in the relevant period. These facts have been taken note of by the department but they have not been able to resolve the matter due to their procedural issue. Matter is being perused.

ii) In respect of Assessment Year 2009-10, the Department has not adjusted credit of the TDS amounting to Rs.1,49,290/-. The rectification U/s 154 of the Income Tax Act has been filed and matter is being perused.

1. There is no impairment loss of fixed assets during the current financial year.

2. Advances of Rs.377,891,040/- {refer Notes to Balance Sheet–H (b)} are outstanding from Private Limited Companies in which Mr. Gaurav Dalmia, Managing Director is a member/director. Part of these balances were taken over on merger of Real Estate undertaking of OCL India Limited, the effective date being 20th December 2007 and part of these were given before Mr. Gaurav Dalmia was appointed as the Director of the Company w. e. f. 29th January, 2008.

3. In the opinion of the Board and to the best of their knowledge and belief, the value on realization of current assets, loans and advances in the ordinary course of business would not be less than the amount at which they are stated in the Balance Sheet.

4. The Company has not received any information from suppliers or service providers, whether they are covered under Micro, Small and Medium Enterprises (Development) Act 2006. Therefore, it has not been possible to give the information required under the Act.

5. A Business Transfer Agreement was signed on the 2nd April 2012 between Ansal Landmark Townships Pvt. Ltd., (ALTPL); Ansal Landmark (Karnal) Township Pvt. Ltd. (ALKTPL) & Ansal Properties & Infrastructure Ltd. Pursuant to the same, advances Rs.499,374,839/- (including accrued interest up to June 30, 2008), which Landmark Property Development Co. Ltd. (the Company) had given to ALTPL stood transferred to a new entity set up to run the Karnal project, viz. ALKTPL. Following this new arrangement, the Company was entitled to allotment of Plots, Flats in Group Housing/Row Housing/Commercial property in the ongoing residential township being developed by ALTPL at Ghaziabad and ALKTPL at Karnal, in due course.

As on March 31, 2015, after adjustment of Rs.144,783,799/- against the allotment of Flats (including semi finished) and Plots, the remaining amount outstanding is Rs.354,591,040/-

6. Employee Benefits (AS – 15 revised)

Following data are as per the report given by the Actuary

The Principal assumptions used in actuarial valuation are as below:

- Discount rate – 7.90% p. a.

- Expected rate of future salary increase – 10% p. a.

- Attrition Rate – 2% p.a.

---

Mar 31, 2014

1. Contingent Liabilities

2013-14 2012-13 Amount Rs. Amount Rs.

Disputed demands in respect of Income Tax:-

-Assessment Year 2007-08 and 2008-09 1.27,91,380/- 1,29,36,758/- -Assessment Year 2009-10 1,56,300/- -

i) In respect of Assessment Year 2007-08 and 2008-09, the Department has not adjusted credit of tax aggregating to Rs.97,02,000/- paid by M/s. OCL India Limited and transferred to the Company arising out of De-merger in the relevant period. These facts have been taken note of by the department but they have not been able to resolve the matter due to their procedural issue. Matter is being perused.

ii) In respect of Assessment Year 2009-10, the Department has not adjusted credit of the TDS amounting to Rs.1,49,290/-. The rectification U/s 154 of the Income Tax Act has been filed and matter is being perused.

2. There is no impairment loss of fixed assets during the current financial year.

3. Advances of Rs.377,975,310/- {refer Notes to Balance Sheet-H (b)} are outstanding from Private Limited Companies in which Mr. Gaurav Dalmia, Managing Director is a member/director. Part of these balances were taken over on merger of Real Estate undertaking of OCL India Limited, the effective date being 20th December 2007 and part of these were given before Mr. Gaurav Dalmia was appointed as the Director of the Company w. e. f. 29th January, 2008. Accordingly, Section 295 and 297 of the Companies Act, 1956 do not apply to transactions entered prior to the date of his becoming the Director.

4. In the opinion of the Board and to the best of their knowledge and belief, the value on realization of current assets, loans and advances in the ordinary course of business would not be less than the amount at which they are stated in the Balance Sheet.

5. The Company has not received any information from suppliers or service providers, whether they are covered under Micro, Small and Medium Enterprises (Development) Act 2006. Therefore, it has not been possible to give the information required under the Act.

6. A Business Transfer Agreement was signed on the 2nd April 2012 between Ansal Landmark Townships Pvt. Ltd., (ALTPL);

Ansal Landmark (Karnal) Township Pvt. Ltd. (ALKTPL) & Ansal Properties & Infrastructure Ltd. Pursuant to the same, advances Rs.499,374,839/- (including accrued interest up to June 30, 2008), which Landmark Property Development Comany Ltd. (the Company) had given to ALTPL stood transferred to a new entity set up to run the Karnal project, viz. ALKTPL. Following this new arrangement, the Company was entitled to allotment of Plots, Flats in Group Housing/Row Housing/Commercial property in the ongoing residential township being developed by ALTPL at Ghaziabad and ALKTPL at Karnal, in due course.

As on March 31, 2014, after adjusting of Rs.144,699,529/- against the allotment of Flats (including semi finished) and Plots, the remaining amount outstanding is Rs.354,675,310/-

7. Employee Benefits (AS - 15 revised)

Following data are as per the report given by the Actuary

The Principal assumptions used in actuarial valuation are as below:

* Discount rate - 9.20% p. a.

* Expected rate of future salary increase - 10% p. a.

* Attrition Rate - 2% p.a.

8. Segment Report (AS - 17)

The Company is primarily engaged in the business of Real Estate Development (including advisory services), which as per Accounting Standard on Segment Report (AS-17) is to be only reportable business segment

9. Related Party Disclosure (AS -18)

Related parties, their relationships and transactions with the above in the ordinary course of business

---

Mar 31, 2013

1. Contingent Liabilities

2012-13 2011-12 Rs. Lakhs Rs.Lakhs

Disputed liability in respect of Income Tax Demands 129.37 257.60

2. There is no impairment loss of fixed assets during the current financial year.

3. Advances of Rs. 52.27 Crores (refer Notes to Balance Sheet -H(b)} are outstanding from Private Limited Companies in which Mr.Gaurav Dalmia, Managing Director is a member/director. Part of these balances were taken over on merger of Real Estate undertaking of OCL India Limited, the effective date being 20th December 2007 and part of these were given before Mr. Gaurav Dalmia was appointed as the Director of the Company w.e. f. 29th January, 2008. Accordingly, Section 295 and 297 of the Companies Act, 1956 do not apply to transactions entered prior to the date of his becoming the Director.

4. In the opinion of the Board and to the best of their knowledge andjbelief, the value on realization of current assets, loans and advances in the ordinary course of business would not be less than the amount at which they are stated in the Balance Sheet,

5. The Company has not received any information from suppliers or service providers, whether they are covered under Micro, Small and Medium Enterprises (Development) Act 2006. therefore, it has not been possible to give the information required under the Act.

6. A Business Transfer Agreement was signed on the 2nd April 2012 between Ansal Landmark Townships Pvt. Ltd.,(ALTPL) Ansal Landmark (Karnal) Township Pvt. Ltd.(ALKTPL) & Ansal Properties & Infrastructure Ltd. Pursuant to the same, advances aggregating Rs.4,993.75 lacs (including accrued interest up to June 30, 2008) which Landmark Property Development Co. Ltd. (the Company) had given to ALTPL stood transferred to a new entity set up to run the Karnal project, viz. ALKTPL. Following this new arrangement, the Company is entitled to allotment of Plots, Flats in Group Housing/Row Housing/Commercial property in the ongoing residential township being developed by ALTPL at Ghaziabad and ALKTPL at Karnal, in due course

7. Employee Benefits (AS -15 revised)

Following data are as per the report given by the Actuary

The Principal assumptions used in actuarial valuation are as below:

Discount rate - 8.10% p. a.

Expected rate of future salary increase- 10% p. a.

Attrition Rate - 2% p.a.

8. Segment Report (AS - 17)

The Company is primarily engaged in the Dusiness of Real Estate Development (including advisory services), which as per Accounting Standard on Segment Report (AS-17) is to be only reportable business segment

9. Related Party Disclosure (AS-18)

a) Related parties and their relationship:

i) Key management personnel: Shri Gaurav Dalmia (Managing Director)

ii) Enterprises over which key management personnel are able to exercise significant influence;

a) Landmark Landholdings Private Limited

b) Ansal Landmark (Karnal) Township Private Limited

c) Astir Properties Private Limited

d) OCL India Ltd.

b) Transactions with above in ordinary course of business:

* Loss on Investment of Rs,2698.68 incurred during the year on transfer of units from UTI Quarterly Plan Series to Daily Dividend Option plan.

10. The figures have been rounded off to the nearest rupee. Previous year figures have been regrouped where necessary to correspond with current year figures.

---

Mar 31, 2012

1. Contingent Liabilities

a) Bank Guarantees - Rs. 2.00 Lakh (Previous Year - Rs. 2.00 Lakh)

b) Disputed Income Tax Demands -Rs.257.60 Lacs for the Assessment Year 2007-08 and 2008-09 for which the Company has filed rectifications u/s 154 of the Income Tax Act, 1961. (Previous Year - Rs. NIL)

2. There is no impairment or loss of fixed assets during the current financial year.

3. Advances of Rs. 52.27 Crores (refer Notes to Balance Sheet -H) are outstanding from Private Limited Companies in which Mr.Gaurav Dalmia, Managing Director is a member I director. Part of these balances were taken over on merger of Real Estate undertaking of OCL India Limited, the effective date being 20lh December 2007 and part of these were given before Mr. Gaurav Dalmia was appointed as the Director of ' the Company w. e. f. 29th January, 2008. Accordingly, Section 295 and 297 of the Companies Act, 1956 do not apply to transactions entered prior to the date of his becoming the Director.

4. In the opinion of the Board and to the best of their knowledge and belief, the value on realization of current assets, loans and advances in the ordinary course of business would not be less than the amount at which they are stated in the Balance Sheet.

5. The Company has not received any information from suppliers or service providers, whether they are covered under Micro, Small and Medium Enterprises (Development) Act 2006. Therefore, it has not been possible to give the information required under the Act.

6. Segment Report (AS-17)

The Company is primarily engaged in the business of Real Estate Development (including advisory services), which as per Accounting Standard on Segment Report (AS-17) is to be only reportable business segment.

7. The Company, in pursuant to an agreement entered into with M/s Ansal Landmark Townships Pvt. Ltd., (ALTPL), has paid advances aggregating to Rs.4993.75 lacs including interest accrued on above advance up to 30.06.2008. The Company is entitled to allotment of Plots, Flats in GH/RH in the ongoing residential township being developed by ALTPL at Meerut, Ghaziabad and Karnal, in due course.

8. Related Party Disclosure (AS -18)

a) Related parties and their relationship:

i) Key management personnel: Shri Gaurav Dalmia (Managing Director)

ii) Enterprises over which key management personnel are able to exercise significant influence:

a) Landmark Landholdings Private Limited

b) Ansal Landmark Townships Private Limited

c) Astir Properties Private Limited

d) OCL India Ltd.

e) Skylark Consultants (India) Private Limited.

b) Transactions with above in ordinary course of business:

9. The figures have been rounded off to the nearest rupee. Previous year figures have been regrouped where necessary to correspond with current year figures including those on account adoption of revised Schedule-VI of the Companies Act, 1956 effective from 01.04.2011.

---

Mar 31, 2011

1. Contingent Liabilities

a) Bank Guarantees - Rs. 2.00 Lakh (Previous Year - Rs. 2.00 Lakh)

b) Service Tax on Rent - Rs. Nil (Previous Year-Rs. 2.21 Lakh)

c) Disputed Income Tax Demands- Rs. NIL (Previous Year - Rs. 78.37 Lakhs)

2. There is no impairment loss of fixed assets during the current financial year.

3. Advances of Rs. 52.27 Crores (refer Schedule - 7) are outstanding from Private Limited Companies in which Mr.Gaurav Dalmia, Managing Director is a member/ director. Part of these balances were taken over on merger of Real Estate undertaking of OCL India Limited, the effective date being 20th December 2007 and part of these were given before Mr. Gaurav Dalmia was appointed as the Director of the Company w. e. f. 29th January, 2008. Accordingly, Section 295 and 297 of the Companies Act, 1956 do not apply to transactions entered prior to the date of his becoming the Director.

4. In the opinion of the Board and to the best of their knowledge and belief, the value on realization of current assets, loans and advances in the ordinary course of business would not be less than the amount at which they are stated in the Balance Sheet.

5. The Company has not received any information from suppliers or service providers, whether they are covered under Micro, Small and Medium Enterprises (Development) Act 2006. Therefore, it has not been possible to give the information required under the Act.

6. Segment Report (AS - 17)

The Company is primarily engaged in the business of Real Estate Development (including advisory services), which as per Accounting Standard on Segment Report (AS-17) is to be only reportable business segment.

7. Employee Benefits (AS - 15 revised)

Following data are as per the report given by the Actuary

The Principal assumptions used in actuarial valuation are as below:

- Discount rate - 8.25% p. a.

- Expected rate of future salary increase - 5% p. a.

- Attrition Rate - 2% p.a.

8. The Company, in pursuant to an agreement entered into with M/s Ansal Landmark Townships Pvt. Ltd., (ALTPL), has paid advances aggregating to Rs.4993.75 lacs including interest accrued on above advance up to 30.06.2008. The Company is entitled to allotment of Plots, Flats in GH/RH in the ongoing residential township being developed by ALTPL at Meerut, Ghaziabad and Karnal, in due course.

9. Related Party Disclosure (AS -18)

a) Related parties and their relationship:

i) Key management personnel: Shri Gaurav Dalmia (Managing Director)

ii) Enterprises over which key management personnel are able to exercise significant influence:

a) Landmark Landholdings Private Limited

b) Ansal Landmark Townships Private Limited

c) Astir Properties Private Limited

d) OCL India Ltd.

e) Samridhi Townships Private Limited

f) Skylark Consultants (India) Private Limited.

---

Mar 31, 2010

1 Contingent Liabilities

a) Bank Guarantees - Rs. 2.00 Lakh ( Previous Year - Rs. 2.00 Lakh)

b) Service Tax on Rent - Rs. 2.21 Lakh ( Previous Year - Rs. Nil)

c) Disputed Income Tax demands not provided for - Rs.78.37 Lakhs (Previous Year - NIL)

(In pursuance to the assessment order passed U/s 143(3) of the Income Tax Act, 1961 for assessment year 2007-08 a demand of Rs.78.37 Lakhs, comprising of interest U/s 234B and 234C has been raised, which has been contested in appeal filed before the CIT (A) - Bhubaneshwar (Orissa).)

2 There is no impairment loss during the current financial year.

3 These advances of Rs. 52.27 Crores (refer Schedule - 8) were outstanding from Private Limited Companies in which Mr. Gaurav Dalmia, Managing Director is a member / director. Part of these balances were taken over on merger of Real Estate undertaking of OCL India Limited, the effective date being 20th December 2007 and part of these were given before Mr. Gaurav Dalmia was appointed as the Director of the Company w. e. f. 29th January, 2008. Accordingly, Sections 295 and 297 of the Companies Act, 1956 do not apply to transactions entered prior to the date of his becoming the Director.

4 In the opinion of the Board and to the best of their knowledge and belief, the value on realization of current assets, loans and advances in the ordinary course of business would not be less than the amount at which they are stated in the Balance Sheet.

5 The Company has not received any information from suppliers or service providers, whether they are covered under Micro, Small and Medium Enterprises ( Development ) Act 2006. Therefore, it has not been possible to give the the information required under the Act.

6 Segment Reporting (AS -17)

The Company is primarily engaged in the business of Real Estate Development ( including advisory services ) , which as per Accounting Standard on Segment Reporting ( AS-17) is to be only reportable business segment.

7 The Company, in pursuant to an agreement entered into with M/s Ansal Landmark Townships Pvt. Ltd., (ALTPL), has paid an advance aggregating to Rs. 4993.75 lacs including interest accrued on above advance upto 30.06.2008. The Company is entitled to allotment of Plots, Flats in GH/RH in the ongoing residential township being developed by ALTPL at Meerut, Ghaziabad and Karnal, in due course.

8 Related Party Disclosure ( AS -18 )

a) Related parties and their relationship :

i Key management personnel :Shri Gaurav Dalmia ( Managing Director)

ii Enterprises over which key management personnel are able to exercise significant influence :

a) Landmark Landholdings Private Limited

b) Ansal Landmark Townships Private Limited

c) Astir Properties Private Limited

d) Samridhi Township Private Limited