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Notes to Accounts of Oberoi Realty Ltd.

Mar 31, 2023

Under a DCF method, forecast cash flows are discounted back to the present date, generating a net present value for the cash flow

stream of the business.

A terminal value at the end of the explicit forecast period is determined and that value is also discounted back to the Valuation Date to

give an overall value for the business.

(i) A Discounted cash flow methodology typically requires the forecast period to be of such a length to enable the business to achieve a stabilised level of earnings, or to be reflective of an entire operation cycle for more cyclical industries.

(ii) The rate at which the future cash flows are discounted ("the discount rate") should reflect not only the time value of money, but also the risk associated with the business future operations. The discount rate most generally employed is Weighted Average Cost of Capital ("WACC"), reflecting an optimal as opposed to actual financing structure.

(iii) In calculating the terminal value, regard must be had to the business potential for further growth beyond the explicit forecast period. The Constant Growth Model, which applies an expected constant level of growth to the cash flow forecast in the last year of the forecast period and assumes such growth is achieved in perpetuity, is a common method. These results would be cross-checked, however, for reasonability to implied exit multiples.

Generally, a change in the assumption made for the estimated rental value is accompanied by:

(a) A directionally similar change in the rent growth per annum and discount rate (and exit yield).

(b) An opposite change in the long term vacancy rate.

4.4 Fair value

As at March 31, 2023 the fair values of the properties are '' 2,51,447.52 lakh ('' 2,45,764.94 lakh). These valuations are based on valuations performed by independent registered valuer. All fair value estimates for investment properties are included in level 3.

The Company has no restrictions on the readability of its investment properties subject to note 20.

18.2 Terms/rights attached to equity shares

The Company has only one class of equity shares having par value of '' 10 per share. Each shareholder of equity shares is entitled to one vote per share. The Company declares dividends in Indian Rupees. 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.

The Board of Directors of the Company has proposed dividend of '' 4 ('' 3) per equity share for the financial year 2022-23. The payment of dividend is subject to approval of the shareholders in the ensuing Annual General Meeting of the Company. The total cash outflows on account of Proposed Equity Dividend would be '' 14,544.09 lakh ('' 10,908.07 lakh).

(a) General reserve - The general reserve is used from time to time to transfer profits from retained earnings for appropriation purposes.

(b) Cap ital redemption reserve - The Company recognises profit and loss on purchase, sale, issue or cancellation of the Company''s own equity instruments to Capital redemption reserve.

(c) Cap ital reserve - Upon redemption of preference shares, the excess of face value over the redemption value of preference shares has been recognized as Capital reserve by the Company.

(d) Securities premium - Securities premium reserve is used to record the premium on issue of shares. The reserve is utilised in accordance with the provisions of the Act.

(e) Retained earnings - The cumulative gain or loss arising from the operations which is retained by the Company is recognised and accumulated under the heading of retained earnings.

(a) In December 2021, the Company availed a working capital credit limit of '' 30,000.00 lakh from Axis Bank Limited for meeting working capital requirement of its various under construction projects. The said credit limit is repayable on demand and is to be renewed annually. The closing balance thereof as on March 31, 2023 is '' 10,076.78 lakh ('' Nil). The Loan is secured by mortgage of the identified commercial units in one of the projects of the Company. The security cover as required under the terms of the loan was maintained (refer note 4).

(b) In January 2023, the Company availed a credit facility of '' 1,00,000.00 lakh (Term Loan of '' 1,00,000.00 lakh with an Overdraft facility not exceeding '' 10,000.00 lakh and Working Capital Demand Loan of '' 6,000.00 lakh as a sublimit of the said Overdraft facility) from ICICI Bank Limited for meeting the operational costs of the Company and acquisition cost of units. Currently this credit facility is on a monthly interest payment of 8.45% p.a. (N.A.) (MCLR Spread), and closing balance thereof as on March 31, 2023 is '' 92,072.66 lakh (Term loan '' 90,354.21 and Working Capital Demand Loan '' 1,718.45) (N.A.). The term loan is for a period of 48 months including 8 months of moratorium from the date of first disbursement. The said term loan is scheduled for repayment in 14 quarterly instalments starting from 9th month from the date of first disbursement. The credit facility is secured by (i) mortgage of the unsold identified residential units in the residential project of the Company and (ii) charge on receivables and Escrow Account into which receivables are deposited from the sale of flats in this project of the Company. The security cover as required under the terms of the credit facility is maintained (refer note 11).

(c) In December 2021, the Company allotted 2,500 5.90% Redeemable non-convertible debentures (NCDs) (Series I) of '' 10.00 lakh each amounting to '' 25,000.00 lakh, 3,500 6.40% Redeemable non-convertible debentures (NCDs) (Series II) of '' 10.00 lakh each amounting to '' 35,000.00 lakh and 4,000 6.80% Redeemable non-convertible debentures (NCDs) (Series III) of '' 10.00 lakh each amounting to '' 40,000.00 lakh, respectively through private placement. The entire issue proceeds have been utilised in accordance with the objects of the issue. The interest is payable semi-annually. The Company has an option to redeem these NCDs prior to the scheduled redemption date on certain predetermined dates. These Debentures are secured by (i) mortgage of the unsold identified residential units (inventories) on pari passu basis in 2 projects of one of the subsidiary Company and (ii) charge on receivables and Escrow Account into which receivables are deposited on pari passu basis from the sale of flats in 2 projects of one of the subsidiary Company (iii) further, secured by way of corporate guarantee of a Subsidiary Company. The security cover as required under the terms of the issue of the said Debentures was maintained.

(d) In February 2021, the Company availed a Term Loan of '' 1,80,000.00 lakh from HDFC Limited for meeting the development and related cost of an under construction commercial project. Currently this Term Loan is on a monthly interest payment of 11.70% p.a. (9.10% p.a.) (HDFC CF-PLR minus spread), and the closing balance thereof as on March 31, 2023 is '' 1,03,410.58 lakh ('' 67,316.59 lakh). The Term Loan is for a period of 144 months, from the date of first drawdown. The Term Loan is repayable in 102 Equated Monthly Instalments (EMIs) after 42 months from the date of first drawdown by the Company. The Term Loan is secured by (i) mortgage of current and future FSI to be used for the under construction commercial project and (ii) charge on the receivables therefrom. The security cover as required under the terms of the Term Loan is maintained (refer note 3).

(e) In March 2021, the company had availed an unsecured overdraft limit of '' 5,000.00 lakh from Kotak Mahindra Bank Ltd. for meeting its working capital requirement. This overdraft limit is renewed annually. The closing balance thereof as on March 31, 2023 is '' Nil ('' Nil).

(f) The Company has filed quarterly returns or statements with banks which are in agreement with books of account of the Company for the borrowings which have been sanctioned on the basis of security of current assets.

The average duration of the defined benefit plan obligation at the end of the reporting period is 10 years (11 years).

36.8 Risk exposure

(i) Asset volaitilty:

The plan liabilities are calculated using the discount rate set with reference to Government securities bond yields; if plan assets underperform this yield, this will create a deficit.

(ii) Change in Government securities bond yields:

A decrease in bond yields will increase plan liabilities, although this will be partially offset by an increase in the value of the plans'' bond holdings.

36.9 The Code on Social Security,2020 ("Code") relating to employee benefits during employment and post employment benefits received Presidential assent in September 2020. The Code has been published in the Gazette of India. However, the date on which the Code will come into effect has not been notified. The Company will assess the impact of the Code when it comes into effect and will record any related impact in the period the Code becomes effective.

A. Based on the “management approach” as defined in Ind AS 108 Operating Segments, the Chairman and Managing Director/ Chief Financial Officer evaluate the Company''s performance based on an analysis of various performance indicators by business segment. Accordingly information has been presented along these segments. The accounting principles used in the preparation of the financial statement are consistently applied in individual segment to prepare segment reporting.

B. Unallocated Corporate Assets primarily comprise of corporate investments and certain property, plant and equipment and Unallocated Corporate Liabilities primarily comprise of tax and deferred tax liabilities. Income earned on temporary investment of the same has been shown in ''Unallocable Income net of Unallocable Expenditure''.

NOTE 39. LEASES_

The lease expense for cancellable and non-cancellable operating leases was '' 15.68 lakh ('' 16.25 lakh) for the year ended

March 31, 2023.

There are no future minimum lease payments under non-cancellable operating lease.

(iii) The application filed by the Company under Section 245C of the Income tax Act in an earlier year, has been concluded in April 2023 and accordingly the Company has made additional provision of '' 799.99 lakh towards tax and interest thereon in the financial statements.

(iv) The sales tax department of the government of Maharashtra has completed the Value Added Tax (VAT) assessments w.r.t. the returns filed by the Company on the sale of flats to the customers during the period beginning from June 2006 till March 2012 and determined the VAT and interest liability. For some of the years, the Company has challenged the assessment order and opted for appeal, which is pending for hearing. Vide an order of the Hon''ble Supreme Court of India, the recovery of interest amounts in such cases has been stayed. However, the Company has opted to settle and pay interest for some of the years under The Maharashtra Settlement of Arrears in Disputes Act, 2016. Part of the amount has been collected by the Company from the flat purchasers on account of such liability and the Company is reasonably confident of recovering all the outstanding amount on account of VAT from flat purchasers.

The amount of interest due and payable for the year due to delay in making payment under Micro, Small and Medium Enterprise Development Act, 2006 is '' Nil ('' Nil). No interest is accrued/unpaid for the current year.

Dues to Micro, Small and Medium Enterprises have been determined to the extent such parties have been identified on the basis of information collected by the Management. This has been relied upon by the auditors.

The management assessed that carrying amount of cash and cash equivalents, other bank balances, trade receivables, loans, investment in government securities, investment in preference shares of joint venture, other financial assets, secured and unsecured borrowings, trade payable and other financial liabilities approximate their fair values largely due to the short-term maturities of these instruments.

42.3 Transfers between Levels 1 and 2

There have been no transfers between Level 1 and Level 2 during the year.

42.4 Financial risk management

The Company has exposure to the following risks arising from financial instruments:

(i) Credit risk ;

(ii) Liq uidity risk ; and

(iii) Market risk

Risk management framework

The Company''s Board of Directors has overall responsibility for the establishment and oversight of the Company''s risk management framework. The Board of Directors has established the Risk Management Committee, which is responsible for developing and monitoring the Company''s risk management policies. The committee reports regularly to the Board of Directors on its activities.

The Company''s risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company''s activities. The Company, through its training and management standards and procedures, aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations.

(i) Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company''s receivables from customers and investments in debt securities.

42.4 Financial risk management

The carrying amount of the financial assets which represents the maximum credit exposure is as follows:

(a) Trade and other receivables

The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer. However, credit risk with regards to trade receivable is almost negligible in case of its residential sale and lease rental business. The same is due to the fact that in case of its residential sell business it does not handover possession till entire outstanding is received. Similarly in case of lease rental business, the Company keep 3 to 12 months rental as deposit from the occupants

No impairment is observed on the carrying value of trade receivables.

(b) Cash and cash equivalents

Credit risk from balances with banks and financial institutions is managed by the Company''s treasury department in accordance with the Company''s policy. Investments of surplus funds are made only with approved counterparties and within credit limits assigned to each counterparty. Counterparty credit limits are reviewed by the Investment committee comprising of Mr. Venkatesh Mysore (Chairperson, Independent Director), Mr. T P. Ostwal (Independent Director) and Mr. Vikas Oberoi (Non-Independent Director) on an annual basis, and may be updated throughout the year subject to approval of the Company''s Investment Committee. The limits are set to minimise the concentration of risks and therefore mitigate financial loss through counterparty''s potential failure to make payments.

(ii) 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 condition, without incurring unacceptable losses or risking damage to the Company''s reputation.

The Company''s objective is to maintain a balance between continuity of funding and flexibility through the use of surplus funds, bank overdrafts, bank loans, debentures and inter-corporate loans.

The Company assessed the concentration of risk with respect to refinancing its debt and concluded it to be low. The Company has access to a sufficient variety of sources of funding.

Exposure to liquidity risk

The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and undiscounted, and include estimated interest payments and exclude the impact of netting agreements.

(iii) Market Risk

Market risk is the risk that changes in market prices - such as foreign exchange rates, interest rates and equity prices - will affect the Company''s income or the value of its holdings of financial instruments. Market risk is attributable to all market risk sensitive financial instruments including foreign currency receivables and payables and long term debt. The Company is exposed to market risk primarily related to foreign exchange rate risk, interest rate risk and the market value of certain commodities. Thus, our exposure to market risk is a function of investing and borrowing activities and revenue generating and operating activities. The objective of market risk management is to avoid excessive exposure in our revenues and costs.

(a) Currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company''s exposure to the risk of changes in foreign exchange rates relates primarily to the Company''s operating activities (when expense is denominated in a foreign currency).

The Company closely tracks and observes the movement of foreign currency with regards to INR and the forward cover rate. The Company decides to cover or keep the foreign currency exposure open based on the above.

(d) Interest Rate Risk

Interest rate risk can be either fair value interest rate risk or cash flow interest rate risk. Fair value interest rate risk is the risk of changes in fair values of fixed interest bearing investments because of fluctuations in the interest rates. Cash flow interest rate risk is the risk that the future cash flows of floating interest bearing investments will fluctuate because of fluctuations in the interest rates.

(f) Commodity price risk

The Company''s activities are exposed to steel and cement price risks and therefore its overall risk management program focuses on the volatile nature of the steel and cement market, thus seeking to minimize potential adverse effects on the Company''s financial performance on account of such volatility.

The risk management committee regularly reviews and monitors risk management principles, policies, and risk management activities.

42.5 Capital Management

The Company''s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of the business. Management monitors the return on capital as well as the level of dividends to ordinary shareholders.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using a gearing ratio, which is net debt divided by total capital. The Company includes within net debt, interest and non interest bearing loans and borrowings, less cash and cash equivalents, excluding discontinued operations.

NOTE 46._

Advances to Vendors'' and Security deposits comprise advances/deposits of '' 32,738.50 lakh ('' 48,713.50 lakh) towards land and transferable development rights (''projects''). Having regard to the nature of business, these include amounts relating to projects that could take a substantial period of time to conclude. Management has evaluated the status of these projects and is confident of performance of obligations of the counter-parties. In view of the management, these advances are in accordance with the normal trade practice and are not in the nature of loans or advance in the nature of loans.

NOTE 47._

The Company has maintained proper books of account as prescribed under Section 128(1) of the Companies Act, 2013 (as amended). The books of accounts are maintained in electronic mode as required under Section 128 (1) of the Companies Act, 2013 read with the Companies (Accounts) Rules, 2014 (as amended). Back-ups of books of account and other relevant books and papers maintained in electronic mode is kept as per the policy of the Company effective August 5, 2022. The back-up of the principal accounting system is kept in a server physically located in India and is done on a daily basis. However, there were a few instances where back-ups were not completed on the same date but were subsequently taken. Further, there are a few systems whose servers are physically located outside India, though daily back-ups of the same are taken.

NOTE 48._

The Board of Directors of Oberoi Realty Limited at its board meeting held on August 9, 2022, approved the Scheme of Amalgamation of Oberoi Constructions Limited, Oberoi Mall Limited, Evenstar Hotels Private Limited and Incline Realty Private Limited (the wholly owned subsidiaries) with Oberoi Realty Limited pursuant to the provisions of Sections 230 to 232 and other applicable sections and provisions of the Companies Act, 2013. The said Scheme of Amalgamation, with an Appointed Date of April 1, 2022, is subject to the requisite approvals and sanction of the jurisdictional bench of National Company Law Tribunal ("NCLT") and subject to the approval of shareholders and/or creditors of the Company, Central Government, or such other competent authority as may be directed by the NCLT. The Company Scheme Petition filed has been admitted by the NCLT and is pending.

NOTE 49. OTHER STATUTORY INFORMATION_

(i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

(ii) The Company has transacted with one struck off company, Netfix Networks (OPC) Private Limited for payment of internet charges during the year amounting to '' 0.30 lakh ('' Nil) having outstanding balance of '' Nil ('' Nil).

(iii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period,

(iv) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

(v) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

Previous year figures have been regrouped, re-arranged and re-classified wherever necessary to conform to current year''s classification.


Mar 31, 2022

Under a DCF method, forecast cash flows are discounted back to the present date, generating a net present value for the cash flow

stream of the business.

A terminal value at the end of the explicit forecast period is determined and that value is also discounted back to the Valuation Date to

give an overall value for the business.

(i) A Discounted cash flow methodology typically requires the forecast period to be of such a length to enable the business to achieve a stabilised level of earnings, or to be reflective of an entire operation cycle for more cyclical industries.

(ii) The rate at which the future cash flows are discounted ("the discount rate") should reflect not only the time value of money, but also the risk associated with the business future operations. The discount rate most generally employed is Weighted Average Cost of Capital ("WACC"), reflecting an optimal as opposed to actual financing structure.

(iii) In calculating the terminal value, regard must be had to the business potential for further growth beyond the explicit forecast period. The Constant Growth Model, which applies an expected constant level of growth to the cash flow forecast in the last year of the forecast period and assumes such growth is achieved in perpetuity, is a common method. These results would be cross-checked, however, for reasonability to implied exit multiples.

Generally, a change in the assumption made for the estimated rental value is accompanied by:

(a) A directionally similar change in the rent growth per annum and discount rate (and exit yield).

(b) An opposite change in the long term vacancy rate.

4.4 Fair value

As at March 31, 2022 the fair values of the properties are '' 2,45,764.94 lakh ('' 2,14,110.00 lakh). These valuations are based on valuations performed by independent registered valuer. All fair value estimates for investment properties are included in level 3.

The Company has no restrictions on the readability of its investment properties subject to note 19.

17.2 Terms/rights attached to equity shares

The Company has only one class of equity shares having par value of ''10 per share. Each shareholder of equity shares is entitled to one vote per share. The Company declares dividends in Indian Rupees. 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.

The Board of Directors of the Company has proposed dividend of '' 3 ('' Nil) per equity share for the financial year 2021-22. The payment of dividend is subject to approval of the shareholders in the ensuing Annual General Meeting of the Company. The total cash outflows on account of Proposed Equity Dividend would be '' 10,908.07 lakh ('' Nil).

17.5 Shares reserved for issue under options

During the previous year FY 2020-21 ''ORL Employee Stock Option Plan 2020'' ("ESOP 2020"), was approved by the Nomination and Remuneration Committee, Board of Directors, and Members of the Company. During the previous year FY 2020-21 an aggregate of 15,30,378 options were granted under ESOP 2020. However, all of the said options stand cancelled for want of acceptance by the options grantees within the stipulated time. Hence there were no outstanding options under ESOP 2020 as on March 31, 2021.

(a) In March 2021, the Company had availed an unsecured overdraft limit of '' 5,000.00 lakh from Kotak Mahindra Bank Ltd. for meeting its working capital requirement. This overdraft limit has been fully repaid and closed in January 2022 (Balance outstanding as on March 31, 2021 was '' 2,933.80 lakh).

(b) In September 2020 and October 2020, the Company allotted 1,980 7.12% Redeemable non-convertible debentures (NCDs) (Series I) of '' 10.00 lakh each amounting to '' 19,800.00 lakh and 5,000 7.85% Redeemable non-convertible debentures (NCDs) (Series II) of '' 10.00 lakh each amounting to '' 50,000.00 lakh, respectively through private placement. The entire issue proceeds were utilised in accordance with the objects of the issue.

The coupon rate was 7.12% p.a. for Series I, and 7.85% p.a. for Series II, payable semi-annually. The Company had an option to redeem the Series I and Series II NCDs prior to the scheduled redemption date on certain predetermined dates. In previous year FY 2020-21, the Company redeemed entire 1,980 7.12% Redeemable non-convertible debentures (NCDs) (Series I) of '' 10.00 lakh each amounting to '' 19,800.00 lakh before their due date of September 28, 2022. The Company also partly redeemed an amount of '' 8,000.00 lakh from Series II NCDs of '' 10.00 lakh, by way of face value reduction from '' 10.00 lakh to '' 8.40 lakh per NCD. In FY 2021-22, the Company has redeemed balance amount of '' 42,000.00 lakh from Series II NCDs of '' 10.00 lakh.

These debentures were secured by (i) mortgage of the unsold identified residential units (inventories) in 2 projects of the Company and (ii) charge on receivables and Escrow Account into which receivables are deposited from the sale of flats in 2 projects of the Company. The security cover as required under the terms of the issue of the said debentures was maintained (refer note 10).

(c) In December 2021, the Company allotted 2,500 5.90% Redeemable non-convertible debentures (NCDs) (Series I) of '' 10.00 lakh each amounting to '' 25,000.00 lakh, 3,500 6.40% Redeemable non-convertible debentures (NCDs) (Series II) of '' 10.00 lakh each amounting to '' 35,000.00 lakh and 4,000 6.80% Redeemable non-convertible debentures (NCDs) (Series III) of '' 10.00 lakh each amounting to '' 40,000.00 lakh, respectively through private placement. The entire issue proceeds have been utilised in accordance with the objects of the issue. The interest is payable semi-annually. The Company has an option to redeem these NCDs prior to the scheduled redemption date on certain predetermined dates.

These Debentures are secured by (i) mortgage of the unsold identified residential units (inventories) on pari passu basis in 2 projects of one of the subsidiary company and (ii) charge on receivables and Escrow Account into which receivables are deposited on pari passu basis from the sale of flats in 2 projects of one of the subsidiary company (iii) further, secured by way of corporate guarantee of a subsidiary company. The security cover as required under the terms of the issue of the said Debentures was maintained.

(d) In September 2017, the Company availed working capital credit limit of '' 30,000.00 lakh from Axis Bank Limited for meeting working capital requirement of its various under construction projects. The said credit limit was for a period of 48 months with scheduled repayment of 25% at the end of each year, from the date of first drawdown. The said limit has been fully repaid by the company on August 2021 (Balance outstanding as on March 31, 2021 was '' 3,368.85 lakh).

The Loan was secured by mortgage of the identified commercial units in one of the project of the Group. The security cover as required under the terms of the loan was maintained (refer note 4).

(e) In February 2021, the Company availed a Term Loan of '' 1,80,000.00 lakh from HDFC Limited for meeting the development and related cost of an under construction commercial project. Currently this Term Loan is on a monthly interest payment of 9.10% p.a. (8.90% p.a.) (HDFC CF-PLR minus spread), and the closing balance thereof as on March 31, 2022 is '' 67,316.59 lakh ('' 3,350.00 lakh). The Term Loan is for a period of 144 months, from the date of first drawdown. The Term Loan is repayable in 102 Equated Monthly Instalments (EMIs) after 42 months from the date of first drawdown by the Company.

The Term Loan is secured by (i) mortgage of current and future FSI to be used for the under construction commercial project and (ii) charge on the receivables therefrom. The security cover as required under the terms of the Term Loan is maintained (refer note 3).

(f) In December 2021, the Company has availed a working capital credit limit of '' 30,000.00 lakh from Axis Bank Limited for meeting working capital requirement of its various under construction projects. The said credit limit is for a period of 12 months with scheduled full repayment at the end of each year, from the date of first drawdown. The closing balance thereof as on March 31, 2022 is Nil.

The Loan was secured by mortgage of the identified commercial units in one of the projects of the Company. The security cover as required under the terms of the loan was maintained (refer note 4).

A. Based on the "management approach" as defined in Ind AS 108 Operating Segments, the Chairman and Managing Director/ Chief Financial Officer evaluate the Company''s performance based on an analysis of various performance indicators by business segment. Accordingly information has been presented along these segments. The accounting principles used in the preparation of the financial statement are consistently applied in individual segment to prepare segment reporting.

B. Unallocated Corporate Assets primarily comprise of corporate investments and certain property, plant and equipment and Unallocated Corporate Liabilities primarily comprise of tax and deferred tax liabilities. Income earned on temporary investment of the same has been shown in ''Unallocable Income net of Unallocable Expenditure''.

(iii) During the previous year ended March 31, 2021, the Company had with a view to avoid protracted tax litigation and for expeditious resolution preferred an application under Section 245C of the Income Tax Act for the earlier 11 financial years. The net unrecorded income as per the application was not significant considering the size of the operations and the Company had paid estimated tax liability of '' 697.71 lakh (Tax '' 431.82 lakh and interest amounting to '' 265.89 lakh) which was provided for in the books of accounts in that year. The proceedings in respect of the same are pending. Management believes that there should not be any further material tax liability arising on this account.

(iv) The sales tax department of the government of Maharashtra has completed the Value Added Tax (VAT) assessments w.r.t. the returns filed by the Company on the sale of flats to the customers during the period beginning from June 2006 till March 2012 and determined the VAT and interest liability. For some of the years, the Company has challenged the assessment order and opted for appeal, which is pending for hearing. Vide an order of the Hon''ble Supreme Court of India, the recovery of interest amounts in such cases has been stayed. However, the Company has opted to settle and pay interest for some of the years under The Maharashtra Settlement of Arrears in Disputes Act, 2016. Part of the amount has been collected by the Company from the flat purchasers on account of such liability and the Company is reasonably confident of recovering all the outstanding amount on account of VAT from flat purchasers.

41.4 Financial risk management

The Company has exposure to the following risks arising from financial instruments:

(i) Credit risk;

(ii) Liq uidity risk; and

(iii) Market risk

Risk management framework

The Company''s Board of Directors has overall responsibility for the establishment and oversight of the Company''s risk management framework. The Board of Directors has established the Risk Management Committee, which is responsible for developing and monitoring the Company''s risk management policies. The committee reports regularly to the Board of Directors on its activities.

The Company''s risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company''s activities. The Company, through its training and management standards and procedures, aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations.

(i) Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company''s receivables from customers and investments in debt securities.

The carrying amount of the financial assets which represents the maximum credit exposure is as follows:

(a) Trade and other receivables

The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer. However, credit risk with regards to trade receivable is almost negligible in case of its residential sale and lease rental business. The same is due to the fact that in case of its residential sell business it does not handover possession till entire outstanding is received. Similarly in case of lease rental business, the Company keep 3 to 12 months rental as deposit from the occupants.

No impairment is observed on the carrying value of trade receivable.

(b) Investment in debt securities

The Company has investment only in redeemable optionally convertible debentures and the settlement of such instruments is linked to the completion of the respective underlying projects. No impairment has been recognised on such investments till date.

(c) Cash and cash equivalents

Credit risk from balances with banks and financial institutions is managed by the Company''s treasury department in accordance with the Company''s policy. Investments of surplus funds are made only with approved counterparties and within credit limits assigned to each counterparty. Counterparty credit limits are reviewed by the Investment committee comprising of Mr. Venkatesh Mysore (Chairperson, Independent Director), Mr. T. P. Ostwal (Independent Director) and Mr. Vikas Oberoi (Non-Independent Director) on an annual basis, and may be updated throughout the year subject to approval of the Company''s Investment Committee. The limits are set to minimise the concentration of risks and therefore mitigate financial loss through counterparty''s potential failure to make payments.

(ii) 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 condition, without incurring unacceptable losses or risking damage to the Company''s reputation.

The Company''s objective is to maintain a balance between continuity of funding and flexibility through the use of surplus funds, bank overdrafts, bank loans, debentures and inter-corporate loans.

The Company assessed the concentration of risk with respect to refinancing its debt and concluded it to be low. The Company has access to a sufficient variety of sources of funding.

Exposure to liquidity risk

The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and undiscounted, and include estimated interest payments and exclude the impact of netting agreements.

(iii) Market risk

Market risk is the risk that changes in market prices - such as foreign exchange rates, interest rates and equity prices - will affect the Company''s income or the value of its holdings of financial instruments. Market risk is attributable to all market risk sensitive financial instruments including foreign currency receivables and payables and long term debt. The Company is exposed to market risk primarily related to foreign exchange rate risk, interest rate risk and the market value of certain commodities. Thus, our exposure to market risk is a function of investing and borrowing activities and revenue generating and operating activities. The objective of market risk management is to avoid excessive exposure in our revenues and costs.

(a) Currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company''s exposure to the risk of changes in foreign exchange rates relates primarily to the Company''s operating activities (when expense is denominated in a foreign currency).

The Company closely tracks and observes the movement of foreign currency with regards to INR and also forward cover rate. The Company decides to cover or keep the foreign currency exposure open based on the above.

(d) Interest Rate Risk

Interest rate risk can be either fair value interest rate risk or cash flow interest rate risk. Fair value interest rate risk is the risk of changes in fair values of fixed interest bearing investments because of fluctuations in the interest rates. Cash flow interest rate risk is the risk that the future cash flows of floating interest bearing investments will fluctuate because of fluctuations in the interest rates.

(e) Exposure to interest rate risk

Company''s interest rate risk arises from borrowings. Borrowings issued at fixed rates exposes to fair value interest rate risk. The interest rate profile of the Company''s interest-bearing financial instruments as reported to the management of the Company is as follows:

(f) Commodity price risk

The Company''s activities are exposed to steel and cement price risks and therefore its overall risk management program focuses on the volatile nature of the steel and cement market, thus seeking to minimize potential adverse effects on the Company''s financial performance on account of such volatility.

The risk management committee regularly reviews and monitors risk management principles, policies, and risk management activities.

41.5 Capital Management

The Company''s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of the business. Management monitors the return on capital as well as the level of dividends to ordinary shareholders.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using a gearing ratio, which is net debt divided by total capital. The Company includes within net debt, interest and non interest bearing loans and borrowings, less cash and cash equivalents, excluding discontinued operations.

(i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

(ii) The Company does not have any transactions with companies struck off.

(iii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period,

(iv) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

(v) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

(vi) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries,

NOTE 48._

Previous year figures have been regrouped, re-arranged and re-classified wherever necessary to conform to current year''s classification.


Mar 31, 2021

(i) A Discounted cash flow methodology typically requires the forecast period to be of such a length to enable the business to achieve a stabilised level of earnings, or to be reflective of an entire operation cycle for more cyclical industries.

(ii) The rate at which the future cash flows are discounted ("the discount rate") should reflect not only the time value of money, but also the risk associated with the business future operations. The discount rate most generally employed is Weighted Average Cost of Capital ("WACC"), reflecting an optimal as opposed to actual financing structure.

(iii) In calculating the terminal value, regard must be had to the business potential for further growth beyond the explicit forecast period. The "Constant Growth Model", which applies an expected constant level of growth to the cash flow forecast in the last year of the forecast period and assumes such growth is achieved in perpetuity, is a common method. These results would be cross-checked, however, for reasonability to implied exit multiples.

Generally, a change in the assumption made for the estimated rental value is accompanied by:

(a) A directionally similar change in the rent growth per annum and discount rate (and exit yield).

(b) An opposite change in the long term vacancy rate.

17.2 Terms/rights attached to equity shares

The Company has only one class of equity shares having par value of '' 10 per share. Each shareholder of equity shares is entitled to one vote per share. The Company declares dividends in Indian Rupees. 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.

The Board of Directors of the Company has not proposed any dividend on equity share for the FY 2020-21and FY 2019-20.

17.4 Shares reserved for issue under options

During FY 2020-21 ''ORL Employee Stock Option Plan 2020'' ("ESOP 2020"), was approved by the Nomination and Remuneration Committee, Board of Directors, and Members of the Company. During FY 2020-21 an aggregate of 15,30,378 options were granted under ESOP 2020. However, all of the said options stands cancelled for want of acceptance by the options grantees within the stipulated time. Hence there are no outstanding options under ESOP 2020 as on March 31,2021.

(a) In March 2021, the Company has availed an unsecured overdraft limit of '' 5,000.00 lakh from Kotak Mahindra Bank Ltd. for meeting its working capital requirement. Currently this overdraft limit is on a monthly interest payment of 8.10% p.a. (Nil) (MCLR Spread), and the closing balance thereof as on March 31,2021 is '' 2,933.80 lakh ('' Nil). This Overdraft limit is for a period of 12 months and can be renewed in January 2022.

The Company can utilise this overdraft limit as per the business requirements.

(b) In September 2020 and October 2020, the Company alloted 1980 7.12% Redeemable non-convertible debentures (NCDs) (Series I) of '' 10.00 lakh each amounting to '' 19,800.00 lakh and 5000 7.85% Redeemable non-convertible debentures (NCDs) (Series II) of '' 10.00 lakh each amounting to '' 50,000.00 lakh, respectively through private placement. The entire issue proceeds have been utilised in accordance with the objects of the issue.

The coupon rate is 7.12% p.a. for Series I, and 7.85% p.a. for Series II, payable semi-annually. The Company has an option to redeem the Series I and Series II NCDs prior to the scheduled redemption date on certain predetermined dates. The Company has redeemed entire 1980 7.12% Redeemable non-convertible debentures ((NCDs) (Series I) of '' 10.00 lakh each amounting to '' 19,800.00 lakh before their due date of September 28, 2022. The Company has also partly redeemed an amount of '' 8,000.00 lakh from Series II NCDs of '' 10.00 lakh, by way of face value reduction from '' 10.00 lakh to '' 8.40 lakh per NCD.

The Debentures are secured by (i) mortgage of the unsold identified residential units (inventories) in 2 projects of the Company and (ii) charge on receivables and Escrow Account into which receivables are deposited from the sale of flats in 2 projects of the Company. The security cover as required under the terms of the issue of the said Debentures is maintained (refer note 10).

(c) In September 2017, the Company has availed working capital credit limit of '' 30,000.00 lakh from Axis Bank Limited for meeting working capital requirement of its various under construction projects. The current drawing power (DP) under this limit is '' 7,500.00 lakh (15,000.00 lakh), as per the terms of sanction. This credit limit carries a monthly interest of 8.20% p.a. (9.20% p.a.) (MCLR Spread) and as on March 31,2021, '' 3,368.85 lakh ('' 406.00 lakh) was drawn by the Company. The said credit limit is for a period of 48 months with scheduled repayment of 25% at the end of each year, from the date of first drawdown.

The Loan is secured by mortgage of the identified commercial units in one of the project of the Company. The security cover as required under the terms of the loan is maintained (refer note 4).

(d) In February 2021, the Company has availed a Term Loan of '' 180,000.00 lakh from HDFC Limited for meeting the development and related cost of a under construction commercial project. Currently this Term Loan is on a monthly interest payment of 8.90% p.a. (N.A.) (HDFC CF-PLR minus spread), and the closing balance thereof as on March 31, 2021 is '' 3,350.00 lakh ('' Nil). The Term Loan is for a period of 144 months, from the date of first drawdown. The Term Loan is repayable in 102 Equated Monthly Instalments (EMIs) after 42 months from the date of first drawdown by the Company.

The Term Loan is secured by (i) mortgage of current and future FSI to be used for the under construction commercial project and (ii) charge on the receivables therefrom. The security cover as required under the terms of the Term Loan is maintained (refer note 3).

(e) In November 2017, the Company had availed a Term Loan of '' 75,000.00 lakh from HDFC Limited for meeting its working capital requirement. This Term Loan was on a monthly interest payment of 9.75% p.a. (10.75% p.a.) (Base Rate PLC), and has been fully repaid by the Company on October 1,2020 (Balance outstanding as on March 31,2020 was '' 59,350.36 lakh).

(f) In August 2019, the Company had availed a Term Loan of Rs. 30,000.00 lakh from HDFC Limited for meeting its working capital requirement. This Term Loan was on a monthly interest payment of 9.75% p.a. (Nil) (Base Rate PLC), and has been fully repaid by the Company on October 1,2020 (Balance outstanding as on March 31,2020 was '' 18,129.36 lakh).

35.8 Risk exposure(i) Asset volaitilty:

The plan liabilities are calculated using the discount rate set with reference to Government securities bond yields; if plan assets underperform this yield, this will create a deficit.

(ii) Change in Government securities bond yields:

A decrease in bond yields will increase plan liabilities, although this will be partially offset by an increase in the value of the plans'' bond holdings.

Based on the "management approach" as defined in Ind AS 108 Operating Segments, the Chairman and Managing Director/ Chief Financial Officer evaluate the Company''s performance based on an analysis of various performance indicators by business segment. Accordingly information has been presented along these segments. The accounting principles used in the preparation of the financial statement are consistently applied in individual segment to prepare segment reporting.

Unallocated Corporate Assets primarily comprise of corporate investments and certain property, plant and equipment and Unallocated Corporate Liabilities primarily comprise of tax and deferred tax liabilities. Income earned on temporary investment has been shown in ''Unallocable Income net of Unallocable Expenditure''.

To avoid protracted tax litigation and for expeditious resolution, the Company has preferred an application under Section 245C of the Income Tax Act in January 2021 for the earlier 11 financial years and paid estimated tax liability of '' 697.71 lakh including interest which has been provided for in the books of accounts. The proceedings in respect of the same are pending. The amounts involved in the application are not significant considering the size of the operations of the Company and the management believes that there should not be any further material tax liability arising on this account.

The sales tax department of the government of Maharashtra has completed the VAT assessments w.r.t. the returns filed by the Company on the sale of flats to the customers during the period beginning from June 2006 till March 2012 and determined the VAT and interest liability. For some of the years, the Company has challenged the assessment order and opted for appeal, which is pending for hearing. Vide an order of the Hon''ble Supreme Court of India, the recovery of interest amounts in such cases has been stayed. However, the Company has opted to settle and pay interest for some of the years under The Maharashtra Settlement of Arrears in Disputes Act, 2016. Part of the amount has been collected by the Company from the flat purchasers on account of such liability and the Company is reasonably confident of recovering all the outstanding amount on account of VAT from flat purchasers.

Transfers between Levels 1 and 2

There have been no transfers between Level 1 and Level 2 during the respective period presented above.

41.4 Financial risk management

The Company has exposure to the following risks arising from financial instruments:

(i) Credit risk ;

(ii) Liquidity risk ; and

(iii) Market risk

Risk management framework

The Company''s Board of Directors has overall responsibility for the establishment and oversight of the Company''s risk management framework. The Board of Directors has established the Risk Management Committee, which is responsible for developing and monitoring the Company''s risk management policies. The committee reports regularly to the Board of Directors on its activities.

The Company''s risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company''s activities. The Company, through its training and management standards and procedures, aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations.

(i) Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company''s receivables from customers and investments in debt securities.

The carrying amount of the financial assets which represents the maximum credit exposure is as follows:

(a) Trade and other receivables

The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer. However, credit risk with regards to trade receivable is almost negligible in case of its residential sale and lease rental business. The same is due to the fact that in case of its residential sell business it does not handover possession till entire outstanding is received. Similarly in case of lease rental business, the Company keep 3 to 12 months rental as deposit from the occupants.

No impairment is observed on the carrying value of trade receivable.

(b) Investment in debt securities

The Company has investment only in redeemable optionally convertible debentures and the settlement of such instruments is linked to the completion of the respective underlying projects. No impairment has been recognised on such investments till date.

(c) Cash and cash equivalents

Credit risk from balances with banks and financial institutions is managed by the Company''s treasury department in accordance with the Company''s policy. Investments of surplus funds are made only with approved counterparties and within credit limits assigned to each counterparty. Counterparty credit limits are reviewed by the Investment committee comprising of Mr. Venkatesh Mysore (Chairperson, Independent Director), Mr. T. P. Ostwal (Independent Director) and Mr. Vikas Oberoi (Non-Independent Director) on an annual basis, and may be updated throughout the year subject to approval of the Company''s Investment Committee. The limits are set to minimise the concentration of risks and therefore mitigate financial loss through counterparty''s potential failure to make payments.

(ii) 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 condition, without incurring unacceptable losses or risking damage to the Company''s reputation.

The Company''s objective is to maintain a balance between continuity of funding and flexibility through the use of surplus funds, bank overdrafts, bank loans, debentures and inter-corporate loans.

The Company assessed the concentration of risk with respect to refinancing its debt and concluded it to be low. The Company has access to a sufficient variety of sources of funding.

Market risk is the risk that changes in market prices - such as foreign exchange rates, interest rates and equity prices - will affect the Company''s income or the value of its holdings of financial instruments. Market risk is attributable to all market risk sensitive financial instruments including foreign currency receivables and payables and long term debt. The Company is exposed to market risk primarily related to foreign exchange rate risk, interest rate risk and the market value of certain commodities. Thus, our exposure to market risk is a function of investing and borrowing activities and revenue generating and operating activities. The objective of market risk management is to avoid excessive exposure in our revenues and costs.

(a) Currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company''s exposure to the risk of changes in foreign exchange rates relates primarily to the Company''s operating activities (when expense is denominated in a foreign currency).

The Company closely tracks and observes the movement of foreign currency with regards to INR and also forward cover rate. The Company decides to cover or keep the foreign currency exposure open based on the above.

Interest rate risk can be either fair value interest rate risk or cash flow interest rate risk. Fair value interest rate risk is the risk of changes in fair values of fixed interest bearing investments because of fluctuations in the interest rates. Cash flow interest rate risk is the risk that the future cash flows of floating interest bearing investments will fluctuate because of fluctuations in the interest rates.

Exposure to interest rate risk

Company''s interest rate risk arises from borrowings. Borrowings issued at fixed rates exposes to fair value interest rate risk. The interest rate profile of the Company''s interest-bearing financial instruments as reported to the management of the Company is as follows:

('' in I akh)

i Fair value sensitivity analysis for fixed-rate instruments

The Company does not account for any fixed-rate financial assets or financial liabilities at fair value through profit or loss. Therefore, a change in interest rates at the reporting date would not affect profit or loss.

ii Fair value sensitivity analysis for floating-rate instruments

The following table demonstrates the sensitivity to a reasonably possible change in interest rates on that portion of loans and borrowings affected. With all other variables held constant, the Company''s profit before tax is affected through the impact on floating rate borrowings is as follows:

(f) Commodity price risk

The Company''s activities are exposed to steel and cement price risks and therefore its overall risk management program focuses on the volatile nature of the steel and cement market, thus seeking to minimize potential adverse effects on the Company''s financial performance on account of such volatility.

The risk management committee regularly reviews and monitors risk management principles, policies, and risk management activities.

41.5 Capital Management

The Company''s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of the business. Management monitors the return on capital as well as the level of dividends to ordinary shareholders.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using a gearing ratio, which is net debt divided by total capital. The Company includes within net debt, interest and non interest bearing loans and borrowings, less cash and cash equivalents, excluding discontinued operations.

NOTE 47.

The Company''s operations were impacted by the Covid 19 pandemic. In preparation of these financials, the Company has taken into account internal and external sources of information to assess possible impacts of the pandemic, including but not limited to assessment of liquidity and going concern, recoverable values of its financial and non-financial assets, impact on revenues and estimates of residual costs to complete ongoing projects. Based on current indicators of future economic conditions, the Company has sufficient liquidity and expects to fully recover the carrying amount of its assets. Considering the evolving nature of the pandemic, its actual impact in future could be different from that estimated as at the date of approval of these financials. The Company will continue to monitor any material changes to future economic conditions.

NOTE 48.

Advances to Vendors'' and Security deposits comprise advances/deposits of '' 49,163.50 lakh ('' 50,013.50 lakh) towards land and transferable development rights (''projects''). Having regard to the nature of business, these include amounts relating to projects that could take a substantial period of time to conclude. Management has evaluated the status of these projects and is confident of performance of obligations of the counter-parties.

NOTE 49._

The Company elected to exercise the option permitted under Section 115BAA of the Income Tax Act, 1961 as introduced by the Taxation Laws (Amendment) ordinance, 2019 while filing the tax return for the year ended March 31, 2020 in the current year. Accordingly, the Company has recognised provision for current tax for the year ended March 31,2021 and re-measured its current tax for the year ended March 31,2020 and deferred tax assets and liabilities basis the rate prescribed in that section. The full impact of this change has been recognised in the tax charges for the year ended March 31,2021.

NOTE 50.

Previous year figures have been regrouped, re-arranged and re-classified wherever necessary to conform to current year''s classification.


Mar 31, 2018

cross-checked, however, for reasonability to implied exit multiples.

Generally, a change in the assumption made for the estimated rental value is accompanied by:

1. A directionally similar change in the rent growth per annum and discount rate (and exit yield).

2. An opposite change in the long term vacancy rate.

(ii) Contractual obligations

Refer note 40 for disclosure of contractual obligations to purchase, construct or develop investment properties or its repairs, maintenance or enhancements.

(iii) Leasing arrangements

The Company''s investment properties consist of three commercial properties in Mumbai. The management has determined that the investment properties consist of — Commerz, Commerz II Phase I and Oberoi International school based on the nature, characteristics and risks of each property.

(iv) Fair value

As at March 31, 2018 the fair values of the properties are Rs, 1,98,610 lakh (Rs, 1,80,100 lakh). These valuations are based on valuations performed by independent valuer. All fair value estimates for investment properties are included in level 3.

The Company has no restrictions on the reliability of its investment properties.

The employee share based payments have been accounted using the intrinsic value method measured by a difference between the market price of the underlying equity shares as at the date of grant and the exercise price. Since the market price of the underlying equity shares on the grant date is same as exercise price of the option, the intrinsic value of option is determined as '' Nil ('' Nil). Hence no compensation expense has been recognized. Under the fair value method, there would have been no impact on the basic and diluted EPS for the year.

*Interest free and repayable on demand

a) During the year ended on March 31, 2018, the Company has availed working capital credit limit of Rs, 30,000.00 lakh from Axis Bank Ltd. for meeting working capital requirement of its various under construction projects. This credit limit carries a monthly interest of 8.90% p.a. (Base Rate PLC) and as on March 31, 2018, Rs, 323.00 lakh was drawn by the Company. The said credit limit is for a period of 48 months with scheduled repayment of 25% at the end of each year, from the date of first drawdown.

The Loan is secured by mortgage of the identified commercial units in one of the project of the Company. The security cover as required under the terms of the Loan is maintained. (refer note 4)

b) During the year ended on March 31, 2018, the Company has availed a Term Loan of Rs, 75,000.00 lakh from HDFC Ltd. for meeting its working capital requirement. Currently this Term Loan is on a monthly interest payment of 9.15% p.a. (Base Rate PLC) on Rs, 68,500.00 lakh drawn by the Company till March 31, 2018. The Term Loan is for a period of 60 months, from the date of first drawdown. The Company has an option to pre-pay the loan fully or partially.

The Term Loan is secured by mortgage of the unsold identified residential units (inventories) in two projects of the Company with charge on receivable therefrom. The security cover as required under the terms of the term loan is maintained.

Guarantee liabilities are on account of financial guarantee given to the subsidiary companies / on behalf of joint venture.

Trade deposits are deposits received from the tenants for leasing of commercial properties. These deposits are interest free and are repayable as per the terms of the contract. These are carried at amortized cost.

Capital creditor are creditors for the acquisition of property, plant and equipments and investment properties.

Other financial liabilities includes amounts payable to vendors / customers in the usual course of business.

The average duration of the defined benefit plan obligation at the end of the reporting period is 15 years (15 years).

Risk exposure a. Asset volatility:

The plan liabilities are calculated using the discount rate set with reference to Government securities bond yields; if plan assets underperform this yield, this will create a deficit.

b. Change in Government securities bond yields:

A decrease in bond yields will increase plan liabilities, although this will be partially offset by an increase in the value of the plans bond holdings.

NOTE 1. RELATED PARTY DISCLOSURES A. Name of related parties and related party relationship i) Related parties where control / joint control exists

Subsidiaries Oberoi Constructions Limited

Oberoi Mall Limited Kingston Property Services Limited Kingston Hospitality and Developers Private Limited Sight Realty Private Limited Buoyant Realty LLP Astir Realty LLP

Expressions Realty Private Limited Incline Realty Private Limited Perspective Realty Private Limited Integrus Realty Private Limited

Joint ventures Sangam City Township Private Limited

l-Ven Realty Limited

ii) Other parties with whom transactions have taken place during the year

Key management Vikas Oberoi

personnel and their Santosh Oberoi

relatives Bindu Oberoi

Gayatri Oberoi Saumil Daru Darsha Daru Anil Harish Tilokchand Ostwal Venkatesh Mysore Karamjit Singh Kalsi

Entities where key R. S. Estate Developers Private Limited

management personnel Oberoi Foundation have significant influence R. S. V. Associates

Neo Realty Private Limited Aquila Realty Private Ltd

Entities where significant Shri Siddhi Avenue LLP influence exist Oasis Realty

NOTE 2. SEGMENT INFORMATION

For management purposes, the Company is organised into business units based on its services and has two reportable segments, as follows:

1. The Real Estate segment which develops and sells residential properties and lease commercial properties.

2. The Hospitality segment which is into the business of managing the hotel.

Notes:

A. Based on the "management approach" as defined in Ind AS 108 - Operating Segments, the Chairman and Managing Director / Chief Financial Officer the Company''s performance based on an analysis of various performance indicators by business segment. Accordingly information has been presented along these segments. The accounting principles used in the preparation of the financial statement are consistently applied in individual segment to prepare segment reporting.

B. Unallocated Corporate Assets includes temporary surplus and Unallocated Corporate Liabilities includes deferred tax liabilities. Income earned on temporary investment of the same has been shown in ''Unallocable Income net of Unallocable Expenditure''.

NOTE 3. LEASES

The lease expense for cancellable and non-cancellable operating leases was Rs, 22.44 lakh ('' 17.28 lakh) for the year ended March 31, 2018.

There is no future minimum lease payments under non-cancellable operating lease.

C. Other Litigations

A. The Company is subject to legal proceedings and claims, which have arisen in the ordinary course of business, the impact of which is not quantifiable. These cases are pending with various courts. After considering the circumstances and legal advice received, management believes that these cases will not adversely affect its financial statements.

B. The sales tax department of the government of Maharashtra has completed the VAT assessments w.r.t. the returns filed by the Company on the sale of flats to the customers during the period beginning from June 2006 till March 2012 and determined the VAT and interest liability. For some of the years, the Company has challenged the assessment order and opted for appeal, which is pending for hearing. Vide an order of the Hon''ble Supreme Court of India, the recovery of interest amounts in such cases has been stayed. However, the Company has opted to settle and pay interest for some of the years under The Maharashtra Settlement of Arrears in Disputes Act, 2016. Part of the amount has been collected by the Company from the flat purchasers on account of such liability and the Company is reasonably confident of recovering all the outstanding amount on account of VAT from flat purchasers.

The amount of interest due and payable for the year due to delay in making payment under Micro, Small and Medium Enterprise Development Act, 2006 is '' Nil ('' Nil). No interest is accrued / unpaid for the current year.

Dues to Micro, Small and Medium Enterprises have been determined to the extent such parties have been identified on the basis of information collected by the Management. This has been relied upon by the auditors.

The management assessed that carrying amount of cash and cash equivalents, trade receivables, loans, Investment in government securities, unsecured borrowings, trade payable and other financial liabilities approximate their fair values largely due to the short-term maturities of these instruments.

Transfers between Levels 1 and 2

There have been no transfers between Level 1 and Level 2 during the respective period presented above.

D. Financial risk management

The Company has exposure to the following risks arising from financial instruments:

- Credit risk ;

- Liquidity risk ; and

- Market risk

Risk management framework

The Company''s board of directors has overall responsibility for the establishment and oversight of the Company''s risk management framework. The board of directors has established the Risk Management Committee, which is responsible for developing and monitoring the Company''s risk management policies. The committee reports regularly to the board of directors on its activities.

The Company''s risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company''s activities. The Company, through its training and management standards and procedures, aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations.

NOTE 4 FINANCIAL INSTRUMENTS - FAIR VALUES AND RISK MANAGEMENT (CONTD.)

i. Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company''s receivables from customers and investments in debt securities.

The carrying amount of the financial assets which represents the maximum credit exposure is as follows:

Trade and other receivables

The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer. However credit risk with regards to trade receivable is almost negligible in case of its residential sale and lease rental business as the same is done to the fact that in case of its residential sell business it does not handover possession till entire outstanding is received. Similarly in case of lease rental business, the Company keep 3 to 12 months rental as deposit from the occupants.

No impairment is observed on the carrying value of trade receivable.

Investment in debt securities

The Company has investment only in redeemable optionally convertible debentures and the settlement of such instruments is linked to the completion of the respective underlying projects. No impairment has been recognized on such investments till date.

Cash and cash equivalents

Credit risk from balances with banks and financial institutions is managed by the Company''s treasury department in accordance with the Company''s policy. Investments of surplus funds are made only with approved counterparties and within credit limits assigned to each counterparty. Counterparty credit limits are reviewed by the Investment committee comprising of Mr. Venkatesh Mysore (Chairperson), Mr. Anil Harish, Mr. T.P. Ostwal (Independent Directors) and Mr. Vikas Oberoi (Non-Independent Director) on an annual basis, and may be updated throughout the year subject to approval of the Investment Committee. The limits are set to minimise the concentration of risks and therefore mitigate financial loss through counterparty''s potential failure to make payments.

ii. 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 condition, without incurring unacceptable losses or risking damage to the Company''s reputation.

The Company''s objective is to maintain a balance between continuity of funding and flexibility through the use of surplus funds, bank overdrafts, bank loans, debentures and inter-corporate loans.

The Company assessed the concentration of risk with respect to refinancing its debt and concluded it to be low. The Company''s has access to a sufficient variety of sources of funding.

Exposure to liquidity risk

The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and undiscounted, and include estimated interest payments and exclude the impact of netting agreements.

iii. Market risk

Market risk is the risk that changes in market prices - such as foreign exchange rates, interest rates and equity prices - will affect the Company''s income or the value of its holdings of financial instruments. Market risk is attributable to all market risk sensitive financial instruments including foreign currency receivables and payables and long term debt. We are exposed to market risk primarily related to foreign exchange rate risk, interest rate risk and the market value of certain commodities. Thus, our exposure to market risk is a function of investing and borrowing activities and revenue generating and operating activities. The objective of market risk management is to avoid excessive exposure in our revenues and costs.

Currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company''s exposure to the risk of changes in foreign exchange rates relates primarily to the Company''s operating activities (when expense is denominated in a foreign currency).

The Company closely tracks and observes the movement of foreign currency with regards to INR and also forward cover rate. The Company decides to cover or keep the foreign currency exposure open based on the above.

Sensitivity analysis

A reasonably possible strengthening (weakening) of the Indian Rupee against US dollars / EUR / SGD at March 31 would have affected the measurement of financial instruments denominated in US dollars and affected equity and profit or loss by the amounts shown below. This analysis assumes that all other variables, in particular interest rates, remain constant and ignores any impact of forecast sales and purchases.

Interest rate risk

Interest rate risk can be either fair value interest rate risk or cash flow interest rate risk. Fair value interest rate risk is the risk of changes in fair values of fixed interest bearing investments because of fluctuations in the interest rates. Cash flow interest rate risk is the risk that the future cash flows of floating interest bearing investments will fluctuate because of fluctuations in the interest rates.

NOTE 5. FINANCIAL INSTRUMENTS - FAIR VALUES AND RISK MANAGEMENT (CONTD.)

Commodity price risk

The Company''s activities are exposed to steel and cement price risks and therefore its overall risk management program focuses on the volatile nature of the steel and cement market, thus seeking to minimize potential adverse effects on the Company''s financial performance on account of such volatility.

The risk management committee regularly reviews and monitors risk management principles, policies, and risk management activities.

E. Capital management

The Company''s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of the business. Management monitors the return on capital as well as the level of dividends to ordinary shareholders.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company includes within net debt, interest and non interest bearing loans and borrowings, less cash and cash equivalents, excluding discontinued operations.

* For the purposes of this clause, the term ''Specified Bank Notes'' shall have the same meaning provided in the notification of the Government of India, in the Ministry of Finance, Department of Economic Affairs number S.O. 3407(E), dated the 8th November, 2016.

NOTE 6. CORPORATE SOCIAL RESPONSIBILITY

As per section 135 of the Companies Act, 2013 read with relevant rules thereon, the Company was required to spend Rs, 914.80 lakh on Corporate Social Responsibility (CSR) activities during FY 2017-18. Against it, the Company has during the year under review spent an amount of Rs, 280.49 lakh (Rs, 43.16 lakh) towards CSR activities, out of which Rs, 150.00 lakh (nil) has been spent towards construction activities. In respect of CSR spending for the year under review, there are no amounts which are yet to be paid in cash.

NOTE 7. Previ ous year figures were audited by Chartered Accountant firm other than S R B C & CO LLP!

NOTE 8. STANDARDS ISSUED BUT NOT YET EFFECTIVE

The amendments to standards that are issued, but not yet effective, up to the date of issuance of the Company''s financial statements are disclosed below. The Company intends to adopt these standards, if applicable, when they become effective.

The Ministry of Corporate Affairs (MCA) has issued the Companies (Indian Accounting Standards) Amendment Rules, 2017 and Companies (Indian Accounting Standards) Amendment Rules, 2018 amending the following standard:

Ind AS 115 Revenue from Contracts with Customers

Ind AS 115 was issued on 29 March 2018 and establishes a five-step model to account for revenue arising from contracts with customers. Under Ind AS 115, revenue is recognized at an amount that reflects the consideration to which an entity expects to be entitled in exchange for transferring goods or services to a customer.

The new revenue standard will supersede all current revenue recognition requirements under Ind AS and the guidance note of real estate issued by ICAI. Ind AS 115 is applicable to the Company for annual periods beginning on or after April 1, 2018.

Based on the preliminary discussion with legal experts, management believes that the contract satisfies the conditions of Ind AS 115 for recognition of revenue over time. Hence the effects of applying Ind AS 115 on the financial statements will be immaterial.

NOTE 9. Previous year figures have been regrouped, re-arranged and re-classified wherever necessary to conform to current year''s classification.


Mar 31, 2017

Explanations for the reconciliation of the Balance Sheet and Profit and Loss Statement as previously reported under IGAAP to Ind AS:

1. Property Plant and Equipment, Investment Properties and Intangible Assets

Under the previous Indian GAAF, investment properties were presented as part of Fixed Asset, whereas under Ind AS, investment properties are required to be shown separately under the head "Investment Property". The Company has elected to measure an item of property, plant and equipment, intangible assets and investment properties at deemed cost at the date of transition to Ind AS.

2. Lease straight lining

On the transition date, the Company has recognized operating lease rentals on a straight line basis retrospectively from the date of commencement of lease, including fit-out (rent free) period.

3. Foreign currency derivative

Under the previous Indian GAAP forward premium is required to be amortized over the forward contract period. Under Ind AS, the fair value (marked to market gains and losses) of forward foreign exchange contracts is to be recognized in statement of profit and loss.

4. 0% Optionally convertible debentures (OCD)

Under the previous Indian GAAF, OCDs has been classified as investment measured at cost. Under Ind AS, OCDs are measured at fair value on initial recognition. The discounting rate to be used is the borrowing rate applicable to the borrower on the date of issue of OCDs. The difference between the fair value and the nominal value of loan is considered as investment in other equity of joint ventures and subsequent recognition has been measured at amortized costs using the Effective Interest Rate (EIR) method. The unwinding of discount is treated as finance income and recognized in statement of profit and loss.

5. Non cumulative Non convertible Preference shares (NCPS)

Under the previous Indian GAAF, NCPS has been classified as long term investment and are carried at cost. Under Ind AS, initially the same have been measured at fair value. Subsequently they have been measured at amortized costs using the EIR method. The unwinding of discount is treated as finance income and recognized in statement of profit and loss. The excess of carrying amount over the fair value of NCPS after discounting has been shown as Investment in other equity of joint ventures.

6. Fair Value of Investment

Under the previous Indian GAAP investment in mutual funds were classified as current investments. Current investments were carried at lower of cost and fair value. Under Ind AS, these investments are required to be measured at fair value. The resulting fair value changes of these investments have been recognized in retained earnings / statement of profit & loss.

7. Inter-company loans

Under the previous Indian GAAP, the interest free inter-company loans were carried at nominal amount. Under Ind AS, such loans are measured at fair value on initial recognition. The discounting rate to be used is the borrowing rate applicable to the borrower on the date of the loan. The difference between the fair value and the nominal value of loan is considered as investment in subsidiaries / joint ventures.

Subsequently such loans are measured at amortized costs. The unwinding of discount is treated as interest income and is accrued as per the EIR method.

8. Security deposits

Under the previous Indian GAAP, the interest free security deposits both received and paid were carried at nominal amount. Under Ind AS, Lease / Security deposits received and paid, are measured at fair value on initial recognition. Unwinding of discount is treated as interest expense / income and is accrued as per the EIR method. The difference between the fair value and the nominal value of deposits is considered as rent in advance / prepaid rent and recognized over the lease term on a straight line basis.

9. Corporate guarantee

Under Ind AS corporate financial guarantee given are measured at their fair value on initial recognition. Subsequently these contracts are measured at the higher of amount of impairment loss allowance as per Ind AS 109 and amount initially recognized less, where appropriate, cumulative amortization recognized.

10. Deferred Tax

The previous Indian GAAP required deferred tax accounting using the income statement approach, which focuses on differences between taxable profits and accounting profits for the period. Ind AS 12 requires entities to account for deferred taxes using the balance sheet approach, which focuses on temporary differences between the carrying amount of an asset or liability in the balance sheet and its tax base. The application of Ind AS 12 approach has resulted in recognition of deferred tax on new temporary differences which was not required under previous Indian GAAP.

11. Proposed dividend

Under the previous Indian GAAP, proposed dividend including dividend distribution tax (DDT), were recognized as liability in the period to which they relate, irrespective of when they were declared. Under Ind AS, proposed dividend is recognized as a liability in the period in which it is declared by the Company, usually when approved by shareholders in a general meeting or paid.

12. Defined benefit liabilities

Both under previous Indian GAAP and Ind AS, the Group recognized costs related to its post-employment defined benefit plan on an actuarial basis. Under previous Indian GAAF, the entire cost, including remeasurements, are charged to profit or loss. Under Ind AS, remeasurements [comprising of actuarial gains and losses, the effect of the asset ceiling, excluding amounts included in net interest on the net defined benefit liability and the return on plan assets excluding amounts included in net interest on the net defined benefit liability] are recognized immediately in the balance sheet with a corresponding debit or credit to retained earnings through OCI.

13. Figures for the previous year have been regrouped, re-arranged, reclassified wherever necessary.

(ii) Contractual obligations

Refer Note 37 for disclosure of contractual obligations to purchase, construct or develop investment property or its repairs, maintenance or enhancements.

(iii) Leasing arrangements

The Company''s investment properties consist of three commercial properties in Mumbai. The management has determined that the investment properties consist of — Commerz, Commerz II phase I and Oberoi International School based on the nature, characteristics and risks of each property.

(iv) Fair value

As at March 31, 2017, March 31, 2016 and April 1, 2015, the fair values of the properties are Rs, 1,80,100 lakh, Rs, 1,46,050 lakh and Rs, 1,39,080 lakh respectively. These valuations are based on valuations performed by independent valuer. All fair value estimates for investment properties are included in level 3.

The Company has no restrictions on the reliability of its investment properties and no contractual obligations to purchase, construct or develop investment properties or for repairs, maintenance and enhancements.

B. Terms / rights attached to equity shares

The Company has only one class of equity shares having par value of Rs, 10 per share. Each shareholder of equity shares is entitled to one vote per share. The Company declares dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

The Board of Directors of the Company has proposed dividend of Rs, 2 per equity share for the financial year 2016-2017. The payment of dividend is subject to approval of the shareholders in the ensuing Annual General Meeting of the Company. For the previous year, the Board of Directors of the Company recommended and shareholders approved dividend of Rs, 2 per equity share.

A. Name of related parties and related party relationship

i) Related parties where control exists

Subsidiaries Oberoi Constructions Limited

Oberoi Mall Limited Kingston Property Services Limited Kingston Hospitality and Developers Private Limited Sight Realty Private Limited Buoyant Realty LLP Astir Realty LLP

Expressions Realty Private Limited Incline Realty Private Limited Perspective Realty Private Limited Integrus Realty Private Limited

Joint ventures Sangam City Township Private Limited

l-Ven Realty Limited

ii) Other parties with whom transactions have taken place during the year

Key management Vikas Oberoi

personnel and their Ranvir Oberoi

relatives Santosh Oberoi

Bindu Oberoi Gayatri Oberoi Saumil Daru Darsha Daru Ashwin Daru Anil Harish Tilokchand Ostwal Venkatesh Mysore Karamjit Singh Kalsi

Entities where key R. S. Estate Developers Private Limited

management Oberoi Foundation

personnel have R. S. V Associates

significant influence Neo Realty Private Limited

Joint Venture of Shri Siddhi Enterprises (from April 15, 2015 till March 16, 2016)

wholly owned Shri Siddhi Avenue LLP (from March 1 7, 201 6)

subsidiary company Oasis Realty

C. The Company has issued an irrevocable and unconditional corporate guarantee in respect of debentures issued by a wholly owned subsidiary and the outstanding amount along with accrued interest as on March 31, 2017 aggregated to Rs, 74,571.73 lakh (Rs, 35,703.47 lakh).

D. The sales tax department of the government of Maharashtra has completed the VAT assessments w.r.t. the returns filed by the Company on the sale of flats to the customers during the period beginning from June 2006 till March 2012 and determined the VAT and interest liability. For some of the years, the Company has challenged the assessment order and opted for appeal, which is pending for hearing. Vide an order of the Hon''ble Supreme Court of India, the recovery of interest amounts in such cases has been stayed. However, the Company has opted to settle and pay interest for some of the years under The Maharashtra Settlement of Arrears in Disputes Act, 2016. Part of the amount has been collected by the Company from the flat purchasers on account of such liability and the Company is reasonably confident of recovering all the outstanding amount on account of VAT from flat purchasers.

The amount of interest due and payable for the year due to delay in making payment under Micro, Small and Medium Enterprise Development Act, 2006 is Rs, Nil (Rs, Nil). No interest is accrued / unpaid for the current year.

Disclosure of trade payables under current liabilities is based on the information available with the Company regarding the status of the suppliers as defined under the Micro, Small and Medium Enterprises Development Act, 2006.

D. Financial risk management

The Company has exposure to the following risks arising from financial instruments:

- Credit risk

- Liquidity risk and

- Market risk

Risk management framework

The Company''s board of directors has overall responsibility for the establishment and oversight of the Company''s risk management framework. The board of directors are responsible for developing and monitoring the Company''s risk management policies. The committee reports regularly to the board of directors on its activities.

The Company''s risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company''s activities. The Company, through its training and management standards and procedures, aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations.

i. Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company''s receivables from customers and investments in debt securities.

The carrying amount of following financial assets represents the maximum credit exposure:

Trade and other receivables

The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer. However credit risk with regards to trade receivable is almost negligible in case of its residential sale and lease rental business as the same is due to the fact that in case of its residential sell business it does not handover possession till entire outstanding is received. Similarly in case of lease rental business, the Company keeps 3 to 12 months rental as deposit from the occupants.

No impairment is observed on the carrying value of trade receivables.

Investment in debt securities

The Company has investment only in redeemable optionally convertible debentures and the settlement of such instruments is linked to the completion of the respective underlying projects. No impairment has been recognized on such investments till date.

Cash and cash equivalents

Credit risk from balances with banks and financial institutions is managed by the Company''s treasury department in accordance with the Company''s policy. Investments of surplus funds are made only with approved counterparties and within credit limits assigned to each counterparty. Counterparty credit limits are reviewed by the Investment Committee of the Board comprising of Mr. Venkatesh Mysore (Chairperson), Mr. Anil Harish, Mr. TP Ostwal, (Independent Directors) and Mr. Vikas Oberoi (Non-Independent Director) on an annual basis, and may be updated throughout the year subject to approval of the Investment Committee. The limits are set to minimize the concentration of risks and therefore mitigate financial loss through counterparty''s potential failure to make payments.

ii. 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 condition, without incurring unacceptable losses or risking damage to the Company''s reputation.

The Company''s objective is to maintain a balance between continuity of funding and flexibility through the use of surplus funds, bank overdrafts, bank loans, debentures and inter-corporate loans.

The Company assessed the concentration of risk with respect to refinancing its debt and concluded it to be low. The Company has access to a sufficient variety of sources of funding.

iii. Market risk

Market risk is the risk that changes in market prices — such as foreign exchange rates, interest rates and commodity prices — will affect the Company''s income or the value of its holdings of financial instruments. Market risk is attributable to all market risk sensitive financial instruments including foreign currency receivables and payables and long term debt. We are exposed to market risk primarily related to foreign exchange rate risk, interest rate risk and the market value of certain commodities. Thus, our exposure to market risk is a function of investing and borrowing activities and revenue generating and operating activities. The objective of market risk management is to avoid excessive exposure to these risks in our revenues and costs.

Currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company''s exposure to the risk of changes in foreign exchange rates relates primarily to the Company''s operating activities (when expense is denominated in a foreign currency).

The Company closely tracks and observes the movement of foreign currency with regards to INR and also forward cover rate. The Company decides to cover or keep the foreign currency exposure open based on the above.

Interest rate risk

Interest rate risk can be either fair value interest rate risk or cash flow interest rate risk. Fair value interest rate risk is the risk of changes in fair values of fixed interest bearing investments because of fluctuations in the interest rates. Cash flow interest rate risk is the risk that the future cash flows of floating interest bearing investments will fluctuate because of fluctuations in the interest rates.

The Company do not have any long term external borrowing as on March 31, 2017.

Commodity Price Risk

The Company''s activities are exposed to steel and cement price risks and therefore its overall risk management program focuses on the volatile nature of the steel and cement market, thus seeking to minimize potential adverse effects on the Company''s financial performance on account of such volatility.

E. Capital Management

The Company''s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of the business. Management monitors the return on capital as well as the level of dividends to ordinary shareholders.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using a gearing ratio, which is net debt divided by total capital. The Company includes within net debt, interest and non interest bearing loans and borrowings less cash and cash equivalents, excluding discontinued operations.

* For the purposes of this clause, the term ''Specified Bank Notes'' shall have the same meaning provided in the notification of the Government of India, in the Ministry of Finance, Department of Economic Affairs number S.O. 3407(E), dated the November 8, 2016.

NOTE 41 : OTHER NOTES

A. In our opinion, all current assets appearing in the Balance Sheet as at March 31, 2017 have a value on realization in the ordinary course of the Company''s business at least equal to the amount at which they are stated in the Balance Sheet.

B. Balance of trade receivables, trade payables and loans and advances are subject to confirmation from respective parties and reconciliation, if any.

C. The Company is primarily engaged in real estate development. The Company has acquired various lands / development rights and certain projects are at initial stage of implementation. The projects may be developed with various end uses, such as hotel, retail outlets, plots, residential, commercial and IT specific use. Such projects will be classified under investment properties, PPE or inventories, as the case may be, based on ultimate end use as per final development of the property. Pending such reclassification on final development of such properties, such plots and the cost incurred on development of projects is included under the head ''Works in progress'' or ''Plots of land'' as part of ''Current assets''.

D. As per section 135 of the Companies Act, 2013 read with relevant rules thereon, the Company was required to spend Rs, 834.15 lakh on Corporate Social Responsibility (CSR) activities during FY 2016-17, against which the Company has spent Rs, 43.16 lakh during the year under review majorly towards maintaining green initiatives and beautification of public spaces and other CSR initiatives.

E. The share of profit / (loss) in the LLP is accounted in the books of the Company as and when the same is credited / debited to the. Partners'' Capital Account.

F. Standards issued but not yet effective

The Government of India through the Ministry of Corporate Affairs in consultation with the National Advisory Committee on Accounting Standards has issued the Companies (Indian Accounting Standards) (Amendment) Rules, 2017 which are effective from April 1, 2017. These amendments are as follows:

1. Amendments to IND AS 102 that address three main areas: the effects of vesting conditions on the measurement of a cash-settled share-based payment transaction; the classification of a share-based payment transaction with net settlement features for withholding tax obligations; and accounting where a modification to the terms and conditions of a share-based payment transaction changes its classification from cash settled to equity settled. On adoption, entities are required to apply the amendments without restating prior periods, but retrospective application is permitted if elected for all three amendments and other criteria are met. The Company is assessing the potential effect of the amendments on its financial statements [the same is not expected to have a material impact on its financial statements].

2. The amendments to IND AS 7 Statement of Cash Flows are part of the IASB''s Disclosure Initiative and require an entity to provide disclosures that enable users of financial statements to evaluate changes in liabilities arising from financing activities, including both changes arising from cash flows and non-cash changes. On initial application of the amendment, entities are not required to provide comparative information for preceding periods. Application of amendments will result in additional disclosure provided by the Company.

G. Previous year figures have been regrouped, re-arranged and re-classified wherever necessary to conform to current year''s classification.

H. Figures have been rounded off to the nearest thousand.


Mar 31, 2016

A. Terms / rights attached to equity shares

The Company has only one class of equity shares having par value of Rs. 1 0 per share. Each shareholder of equity shares is entitled to one vote per share. The Company declares dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

During the year, the Board of Directors of the Company has declared and paid interim dividend of Rs. 2 per equity share for the financial year 201 5-201 6. The said interim dividend shall be considered as the final dividend for the said financial year. For the previous year the Board of Directors of the Company recommended and shareholders approved dividend of Rs. 2 per equity share.

B. General Description of significant defined plans Gratuity plan

Gratuity is payable to all eligible employees on death or on resignation, or on retirement after completion of five years of service.

Leave plan

Eligible employees can carry forward leave in month of April of every year during tenure of service or encash the same on death, permanent disablement or resignation.

C. The Company has mortgaged certain immovable properties and granted hypothecation and escrow of the receivables thereof as a security in respect of the debentures outstanding along with accrued interest as on March 31, 201 6 aggregating to Rs.35,703.47 Lakh issued by a wholly owned subsidiary. The Company has also issued an irrevocable and unconditional corporate guarantee in respect of the same.

D. The sales tax department of the Government of Maharashtra has completed the VAT assessments in connection with the returns filed by the Company on the sale of flats to the customers during the period beginning from June 2006 till March 201 2 and determined the interest liability at Rs.290.03 Lakh on the assessed amounts. However, vide an order of the Hon''ble Supreme Court of India, the recovery of interest amounts in such cases has been stayed. Part of the amount has been collected by the Company from the flat purchasers on account of such liability. Pending the final decision in the matter, no effect is given in the profit and loss account for the same.

NOTE 1 : OTHER NOTES

A. In our opinion, all current assets appearing in the Balance Sheet as at March 31, 201 6 have a value on realisation in the ordinary course of the Company''s business at least equal to the amount at which they are stated in the Balance Sheet.

B. Balance of trade receivables, trade payables and loans and advances are subject to confirmation from respective parties and reconciliation, if any.

C. The Company is primarily engaged in real estate development. The Company has acquired various lands / development rights and certain projects are at initial stage of implementation. The projects may be developed with various end uses, such as hotel, retail outlets, plots, residential, commercial and IT specific use. Such projects will be classified under fixed assets or inventories, as the case may be, based on ultimate end use as per final development of the property. Pending such reclassification on final development of such properties, such plots and the cost incurred on development of projects is included under the head ''Work in progress'' or ''Plots of land'' as part of ''Current assets''.

D. The Company''s normal operating cycle in respect of operations relating to the construction of real estate projects may vary from project to project depending upon the size of the project, type of development, project complexities and related approvals. Operating cycle for all completed projects and hospitality business is based on 1 2 months period. Assets and liabilities have been classified into current and non-current based on the operating cycle.

E. As per section 135 of the Companies Act, 2013 read with relevant rules thereon, the Company was required to spend Rs.736.71 Lakh on Corporate Social Responsibility (CSR) activities during FY 2015-16, against which the Company has spent Rs.44.67 Lakh during the year under review majorly towards maintaining green initiatives and beautification of public spaces and Rs.500.00 Lakh as contribution to Maharashtra Chief Minister''s Relief Fund for mitigation of drought situation in the State of Maharashtra.

F. The share of profit / loss in the LLP is accounted in the books of the Company as and when the same is credited / debited to the Partners'' Capital Account.

G. Previous year figures have been regrouped, re-arranged and re-classified wherever necessary to conform to current year''s classification.

H. Figures have been rounded off to the nearest thousand.


Mar 31, 2015

NATURE OF OPERATIONS

Oberoi Realty Limited (the ''Company'' or ''ORL''), a public limited company, is engaged primarily in the business of real estate development and hospitality.

NOTE 1 : RELATED PARTY DISCLOSURES

A. Name of related parties and related party relationship i) Related parties where control exists

Subsidiaries

Oberoi Constructions Limited

Oberoi Mall Limited

Kingston Property Services Limited

Kingston Hospitality and Developers Private Limited

Sight Realty Private Limited

Buoyant Realty Private Limited (up to March 3, 2015)

Perspective Realty Private Limited

Expressions Realty Private Limited

Incline Realty Private Limited

Integrus Realty Private Limited

ii) Related parties with whom transactions have taken place during the year

Jointly controlled entities

Sangam City Township Private Limited Astir Realty LLP I-Ven Realty Limited

Buoyant Realty LLP (from March 4, 2015)

Joint venture of subsidiaries Oasis Realty

Key management personnel and their relatives

Vikas Oberoi Ranvir Oberoi Santosh Oberoi Bindu Oberoi Gayatri Oberoi

Entities where key management personnel have significant influence

R S Estate Developers Private Limited Oberoi Foundation R. S. V. Associates Neo Realty Private Limited



NOTE 2 : CONTINGENT LIABILITIES AND CAPITAL COMMITMENTS

2015 2014

A. Summary details of contingent liabilities

1. Letters of credit net of margin - -

(gross Rs.36.00 Lakh, previous year Rs.93.39 Lakh)

2. Bank guarantees net of margin - -

(gross Rs.1,175.21 Lakh, previous year Rs.1,651.79 Lakh)

3. Indemnity bonds given in favour of the government under Export 863.77 1,365.76

Promotion Capital Goods Scheme (net of bank guarantees)

4. Litigations

a) Legal cases against the Company not acknowledged as 1,933.60 5.47 debt (excluding certain matters where amounts are not ascertainable)

b) MVAT matters in dispute 320.55 495.60

c) Income-tax matters in dispute 881.88 1,722.27

d) Service tax matters in dispute 203.83 218.09

e) Property tax matters in dispute 395.15 -

5. Claims against the Company not acknowledged as debt - 3,845.06

6. Certain other additional matters which are under dispute but Amount not Amount not which are not acknowledged as debt by the Company ascertainable ascertainable

7. Corporate guarantees given (excluding corporate guarantee given 61,966.44 35,000.00 for raising debentures in a subsidiary, refer note C below)

B. Capital commitments

Capital contracts (net of advances) 1,218.55 20,007.29

C. The Company has mortgaged certain immovable properties and granted hypothecation and escrow of the receivables thereof as a security in respect of the debentures outstanding as on March 31, 2015 aggregating to H65,100.00 Lakh issued by a wholly owned subsidiary. The Company has also issued an irrevocable and unconditional corporate guarantee in respect of the same.

D. The sales tax department of the Government of Maharashtra has completed the VAT assessments in connection with the returns filed by the Company on the sale of flats to the customers during the period beginning from June 2006 till March 2012 and determined the interest liability at H197.54 Lakh on the assessed amounts. However, vide an order of the Hon''ble Supreme Court of India, the recovery of interest amounts in such cases has been stayed. Part of the amount has been collected by the Company from the flat purchasers on account of such liability. Pending the final decision in the matter, no effect is given in the profit and loss account for the same.

NOTE 3 : OTHER NOTES

A. In our opinion, all current assets appearing in the Balance Sheet as at March 31,2015 have a value on realisation in the ordinary course of the Company''s business at least equal to the amount at which they are stated in the Balance Sheet.

B. Balance of trade receivables, trade payables and loans and advances are subject to confirmation from respective parties and reconciliation, if any.

C. The Company is primarily engaged in real estate development. The Company has acquired various lands / development rights and certain projects are at initial stage of implementation. The projects may be developed with various end uses, such as hotel, retail outlets, plots, residential, commercial and IT specific use. Such projects will be classified under fixed assets or inventories, as the case may be, based on ultimate end use as per final development of the property. Pending such reclassification on final development of such properties, such plots and the cost incurred on development of projects is included under the head ''Work in progress'' or ''Plots of land'' as part of ''Current assets''.

D. The Company''s normal operating cycle in respect of operations relating to the construction of real estate projects may vary from project to project depending upon the size of the project, type of development, project complexities and related approvals. Operating cycle for all completed projects and hospitality business is based on 12 months period. Assets and liabilities have been classified into current and non-current based on the operating cycle.

E. As per section 135 of the Companies Act, 2013 read with relevant rules thereon, the Company was required to spend H696.00 Lakh on Corporate social responsibility (CSR) activities during FY2014-15, against which the Company has spent H15.94 Lakh during the year under review majorly towards maintaining green initiatives and beautification of public spaces.

F. The share of profit / loss in the LLP is accounted in the books of the Company as and when the same is credited / debited to the Partners'' Capital Account.

G. Previous year figures have been regrouped, re-arranged and re-classified wherever necessary to conform to current year''s classification.

H. Figures have been rounded off to the nearest thousand.


Mar 31, 2014

NATURE OF OPERATIONS

Oberoi Realty Limited (the ''Company'' or ''ORL''), a public limited company, is engaged primarily in the business of real estate developments and hospitality.

(Rs.in Lakh)

NOTE 1 :

CONTINGENT LIABILITIES, CAPITAL COMMITMENTS 2014 2013 AND OTHER COMMITMENTS

A. Summary details of contingent liabilities Letters of credit net of margin (gross H Nil previous year H 36.00 Lakh) - -

Bank guarantees net of margin - - (gross H 1,651.79 Lakh previous year H 2,412.12 Lakh)

Indemnity bonds given in the favour of the government under Export 1,365.76 3,446.85 Promotion Capital Goods Scheme (net of bank guarantees)

Legal cases against the Company not acknowledged as debts 0.50 -

Claims against the Company not acknowledged as debts 3,850.03 2,786.15

Certain other additional matters which are under dispute (including Amount not Amounts not some matters which are pending in court) but which are not ascertainable ascertainable acknowledged as debts by the Company

Custom duty matters in dispute - 44.00

Service tax matters in dispute 218.09 189.53

Income-tax matters in dispute 1,722.27 1,670.55

MVAT matters in dispute 495.60 -

Corporate guarantee given 35,000.00 5,000.00

B. Capital Commitments

Capital contracts (net of advances) 20,007.29 21,270.66

C. Other commitments

Other commitments 1,06,388.50 -

D. In respect of the leasehold property at Worli, which was assigned to I-Ven Realty Limited (the Company''s JV) in 2005, the Municipal Commissioner (MC) of the Municipal Corporation of Greater Mumbai (MCGM) has, pursuant to an order of the Bombay High Court, passed an order dated April 25, 2014 holding, inter alia, that the transfer of lease is valid, and that the approvals obtained by the Company''s JV were also valid.

E. The Hon''ble Supreme Court in its order dated September 26, 2013, upheld that the levy of VAT w.e.f. June 20, 2006 under MVAT Act, 2002 on property under construction, is constitutionally valid. Though the Government of Maharashtra has made consequential amendments to the MVAT Act, 2002, the same have been challenged by Builders Association of India (BAI) by way of writ petition before Bombay High Court and is pending for hearing.

In view of the above, the Company has determined the VAT liability in accordance with the amendments and has under protest, discharged the principal VAT liability excluding the interest thereon. No effect has been given in respect of this matter in the statement of Profit & Loss Account and the net balance has been carried to Balance Sheet. The net amount of H 267.54 Lakh, being the excess of liability over collection has been included as a contingent liability.

NOTE 2 : OTHER NOTES

A. In our opinion, all current assets appearing in the Balance Sheet as at March 31, 2014 have a value on realisation in the ordinary course of the Company''s business at least equal to the amount at which they are stated in the balance sheet

B. Balance of trade receivable, trade payables and loans and advances are subject to confirmation from respective parties and reconciliation, if any.

C. The Company is primarily engaged in real estate development. The Company has acquired various lands / development rights and certain projects are at initial stage of implementation. The projects may be developed with various end uses, such as hotel, retail outlets, plots, residential, commercial and IT specific use. Such projects will be classified under fixed assets or inventories, as the case may be, based on ultimate end use as per final development of the property. Pending such reclassification on final development of such properties, such plots and the cost incurred on development of projects is included under the head ''Works in progress'' or ''Plots of land'' as part of ''Current assets''.

D. The Company''s normal operating cycle in respect of operations relating to the construction of real estate projects may vary from project to project depending upon the size of the project, type of development, project complexities and related approvals. Operating cycle for all completed projects and hospitality business is based on 12 months period. Assets and liabilities have been classified into current and non-current based on the operating cycle.

E. The share of profit / loss in the LLP is accounted in the books of the Company as and when the same is credited / debited to the Partners'' Capital Account.

F. Previous year figures have been regrouped, re-arranged and re-classified wherever necessary to conform to current year''s classification.

G. Figures have been rounded off to the nearest thousand.


Mar 31, 2013

NATURE OF OPERATIONS

Oberoi Realty Limited (the ''Company'' or ''ORL''), a public limited company, is engaged primarily in the business of real estate development and hospitality.

A. Name of related parties and related party relationship

i) Related parties where control exists

Subsidiaries Buoyant Realty Private Limited

Expressions Realty Private Limited

Kingston Hospitality and Developers Private Limited

Kingston Property Services Limited

Oberoi Constructions Limited

Oberoi Mall Limited

Perspective Realty Private Limited

Sight Realty Private Limited

Triumph Realty Private Limited (till May 23, 2011)

ii) Related parties with whom transactions have taken place during the year

Jointly controlled entities Astir Realty LLP

I-Ven Realty Limited (from September 29, 2011) Sangam City Township Private Limited

Joint venture of subsidiaries Oasis Realty (AOP)

Key management personnel and their relatives Bindu Oberoi

Gayatri Oberoi Ranvir Oberoi Santosh Oberoi Vikas Oberoi

Entities where key management personnel Oberoi Foundation have significant influence R. S. Estate Developers Private Limited

NOTE 1 : OTHER NOTES

A. The Institute of Chartered Accountants of India has issued Guidance Note on Accounting for Real Estate Transactions (Revised 2012) in connection with the revenue recognition for a real estate project which commences on or after April 1, 2012 and also to real estate projects which have already commenced but where revenue is being recognised for the first time on or after April 1, 2012.

During the year under consideration, there is no real estate project for which revenue has been recognised under the said Guidance Note, hence there is no impact of the same in the statement of profit and loss for the year ended March 31, 2013.

B. In our opinion, all current assets appearing in the Balance Sheet as at March 31, 2013 have a value on realisation in the ordinary course of the Company''s business at least equal to the amount at which they are stated in the balance sheet.

C. Balance of trade receivable, trade payables and loans and advances are subject to confirmation from respective parties and reconciliation, if any.

D. The Company is primarily engaged in real estate development. The Company has acquired various lands / development rights and certain projects are at initial stage of implementation. The projects may be developed with various end uses, such as hotel, retail outlets, plots, residential, commercial and IT specific use. Such projects will be classified under fixed assets or inventories, as the case may be, based on ultimate end use as per final development of the property. Pending such reclassification on final development of such properties, such plots and the cost incurred on development of projects is included under the head ''Work in progress'' or ''Plots of land'' as part of ''Current assets''.

E. The Company''s normal operating cycle in respect of operations relating to the construction of real estate projects may vary from project to project depending upon the size of the project, type of development, project complexities and related approvals. Operating cycle for all completed projects and hospitality business is based on 12 months period. Assets and liabilities have been classified into current and non-current based on the operating cycle.

F. The share of profit / loss in the LLP is accounted in the books of the Company as and when the same is credited / debited to the Partners'' Capital Account.

G. Previous year figures have been regrouped, re-arranged and re-classified wherever necessary to conform to current year''s classification.

H. Figures have been rounded off to the nearest thousand.


Mar 31, 2012

Nature of Operations

Oberoi Realty Limited (the ''Company'' or ORL''), a public limited company, is engaged primarily in the business of real estate development and hospitality.

A. Terms / rights attached to equity shares

The Company has only one class of equity shares having par value of Rs 10 per share. Each equity share is entitled to one vote. The Company declares dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

During the year ended March 31, 2012, the amount of per share dividend recognised as proposed for distribution to equity share- holders was Rs 2 (Rs 1), which is subject to approval of shareholders in Annual General Meeting.

B. Redemption of redeemable non-convertible cumulative preference shares

During the year, the Company has redeemed all 359 redeemable non-convertible cumulative preference shares ofRs 10,00,000 each aggregating to Rs 35,90,00,000 for an amount of Rs 1 and balance Rs 35,89,99,999 has been transferred to capital reserve.

C. Shares reserved for issue under options

The Company instituted an Employees Stock Option Scheme (''ESOP 2009'') pursuant to the Board and Shareholders'' resolution dated December 04, 2009. As per ESOP 2009, the Company is authorised to grant 14,43,356 options comprising equal number of equity shares in one or more tranches to the eligible employees of the Company and its subsidiaries. The employee will have the option to exercise the right within three years from the date of vesting of options. Under ESOP 2009, 13,49,553 options have been granted.

The employee share based payments have been accounted using the intrinsic value method measured by a difference between the market price of the underlying equity shares as at the date of grant and the exercise price. Since the market price of the underlying equity shares on the grant date is same as exercise price of the option, the intrinsic value of option is determined as Nil. Hence no compensation expense has been recognised. Under the fair value method, the basic and diluted EPS would have been lower byRs 0.11.

D. General description of significant defined plans Gratuity plan

Gratuity is payable to all eligible employees of the Company on death or on resignation, or on retirement, after completion of five years of service.

Leave plan

Eligible employees can carry forward leave in month of April of every year during tenure of service or encash the same on death, permanent disablement or resignation.

2012 2011 NOTE 1 : CONTINGENENT LIABELITIES CAPITAL COMMITMENTS AND OTHER COMMITMENTS A. Summary details of contingent liabilities

Letters of credit 316.48 -

Bank guarantees(gross) 2,563.78 3,282.23

Indemnity bonds given in favour of the government under Export Promotion Capital 3,721.18 3,721.18 Goods Scheme (net of bank guarantees)

Legal cases against the Company not acknowledged as debts 200.15 1,540.00

Claims against the Company not Acknowledged as debts 80.00 698.11

Certain other additional matters which are under dispute (including some matters Amounts not Amounts not

which are pending in court) but which are not acknowledged as debts by the Company ascertainable ascertainable

Service tax matters in dispute 85.88 85.88

Corporate guarantees given 5,000.00 -

Custom duty matters in dispute 44.00 -

Income-tax matters in dispute 1,077.54 232.85

B. Capital commitments

Capital contracts(net of advances) 25,920.81 11,145.50

C. Other commitments

Other commitments 1,884.67 -

D. During the year, the Company has acquired 50% interest in l-Ven Realty Limited (JV) which holds a leasehold property at Worli, assigned to it in 2005. The Municipal Commissioner (MC) of the Municipal Corporation of Greater Mumbai (MCGM) has passed an order in 2009 revoking various permissions granted earlier by the MCGM and also invalidating the transfer of lease to the JV.

The assignor of the lease had filed a writ petition before the Bombay High Court against the MCGM and others (to which the JV has also been made a party) seeking among other things that the order passed in 2009 be set aside. Vide order dated 25th May, 2012, the Bombay High Court has quashed and set aside the order passed in 2009 by the MC.

The JV has also filed a writ before the Bombay High Court against the MCGM and others seeking among other things that the order passed in 2009 be quashed and set aside. The matter is pending.

It is not possible to ascertain the monetary liability on this account.

E. The Maharashtra Chamber of Housing Industry (MCHI) had filed a writ petition in Bombay High Court challenging the levy of VAT w.e.f. June 20, 2006 under MVAT Act, 2002 on property under construction which has been recently dismissed by the High Court. Under the premises ownership agreement / letter of allotment entered into by the Company, such liability ultimately needs to be borne by the purchaser of the premises, for which the purchasers have created lien on bank deposits or has given bank guarantees / registered undertakings and / or adequately indemnified the Company and hence no provision has been made in the books.

Shareholders in the Annual General Meeting held on June 30, 2011 have passed the special resolution to vary and / or revise the utilisation proceeds from the Initial Public Offering (''IPO'') of Equity Shares to utilise the proceeds of IPO including change in allocation for construction of ongoing projects, towards acquisition of land or land development rights and /or general corporate purposes, change in amount or schedule of deployment for the projects identified in the Prospectus, as the case maybe.

A. In our opinion, all current assets appearing in the Balance Sheet as at March 31, 2012 have a value on realisation in the ordinary course of the Company''s business at least equal to the amount at which they are stated in the balance sheet.

B. Balance of trade receivable, trade payables and loans and advances are subject to confirmation from respective parties and reconciliation, if any.

C. The Company is primarily engaged in real estate development. The Company has acquired various lands / development rights and certain projects are at initial stage of implementation. The projects may be developed with various end uses, such as hotel, retail outlets, plots, residential, commercial and IT specific use. Such projects will be classified under fixed assets or inventories, as the case may be, based on ultimate end use as per final development of the property. Pending such reclassification on final development of such properties, such plots and the cost incurred on development of projects are included under the head ''Work in progress'' or ''Plots of land'' as part of ''Current assets''.

D. The Company''s normal operating cycle in respect of operations relating to under construction real estate projects may vary from project to project depending upon the size of the project, type of development, project complexities and related approvals. Operating cycle for all completed projects and hospitality business is based on 12 months period. Assets and liabilities have been classified into current and non-current based on the operating cycle of respective businesses.

E. The share of profit / loss in the LLP is accounted in the books of the Company as and when the same is credited / debited to the Partners'' Capital Account.

F. Figures have been rounded off to the nearest thousand.

Till the year ended March 31, 2011, the Company was following pre-revised Schedule VI to the Companies Act 1956, for preparation and presentation of its financial statements. During the year March 31, 2012, the revised Schedule VI notified under the Companies Act, 1956 has become applicable to the Company. The Company has reclassified / re-grouped the previous year figures to conform to this year''s classification. The adoption of revised Schedule VI does not impact recognition and measurement principles followed for preparation of financial statements. However, it significantly impacts presentation and disclosures made in financial statements, particularly presentation of balance sheet.


Mar 31, 2011

1. We have reviewed financial statements and the cash flow statement of Oberoi Realty Limited for the year ended March 31, 2011 and that to the best of our knowledge and belief :

i. these statements do not contain any materially untrue statement or omit any material fact or contain statements that might be misleading;

ii. these statements together present a true and fair view of the companys af airs and are in compliance with existing accounting standards, applicable laws and regulations.

2. There are, to the best of our knowledge and belief, no transactions entered into by the Company during the year which are fraudulent, illegal or violative of the companys code of conduct.

3. We accept responsibility for establishing and maintaining internal controls for financial reporting and that we have evaluated the ef ectiveness of internal control systems of the company pertaining to fi nancial reporting and we have disclosed to the auditors and the Audit Committee, defi ciencies in the design or operation of such internal controls, if any, of which we are aware and the steps we have taken or propose to take to rectify these defi ciencies. In our opinion there are adequate internal controls over financial reporting.

4. We have indicated to the auditors and the Audit committee

i. significant changes in internal control over financial reporting during the year;

ii. significant changes in accounting policies during the year, if any, have been disclosed in the notes to the financial statements; and

iii. that there are no instances of significant fraud of which we have become aware and the involvement therein, if any, of the management or an employee having a significant role in the companys internal control system over financial reporting.

1. Nature of operations:

Oberoi Realty Limited (the Company or ORL), a public limited company, together with its subsidiaries and joint ventures (collectively referred to as the Group) is engaged primarily in the business of Real Estate Development and Hospitality.



5. Contingent liabilities not provided for in respect of:

(Rs. in Lakh)

No. Particulars March 31, 2011 March 31, 2010

A. Letters of Credit (net of margin) - 18.04

B. Bank Guarantees (gross) 3,332.23 2,578.38

C. Capital Contracts (net of advances) 27,649.18 34,691.77

D. Groups share of commitment in Joint Venture 2,400.00 4,000.00

E. Indemnity Bonds given in favour of the Government under Export Promotion 3,721.18 3,627.73 Capital Goods Scheme (net of Bank Guarantees)

F. Legal cases against the Group not acknowledged as debts 1,560.00 5.00

G. Claims against the Group not acknowledged as debts 2,860.19 669.23

H. Certain other additional matters which are under dispute (including some Amounts not Amounts not matters which are pending in court) but which are not acknowledged as ascertainable ascertainable debts by the Group

I. Service tax matters in dispute 215.91 215.91

J. Customs duty matters in dispute 3.30 -

K. Income-tax matters in dispute 1,051.97 1,410.24

L. SRPL, a joint venture of a subsidiary, had entered into a Master Asset Purchase Agreement (Agreement) to purchase immovable and movable properties of hotel located at Juhu, Mumbai, for a consideration of Rs.34,906.00 Lakh with the Vendor Company. SRPL has paid an advance of Rs. 7,500.00 Lakh towards the same.

Due to various disputes with the vendors, the said transaction has not been completed. Consequent to Arbitration applications being fi led, the Honble Bombay High Court has passed an order directing the parties to maintain the status quo. In the arbitration proceedings, the vendors have lodged various claims against the SRPL. The maximum liability claimed under various alternatives is Rs. 23,200.00 Lakh and interest thereon. Matter being subjudice, in view of the terms and conditions of the Agreement and one of the relief claimed by the vendors to terminate the Agreement and refund the advance paid by the SRPL, the SRPL is confi dent that it will succeed in its case against the vendors and others and no amounts would be payable towards the claims fi led. Accordingly, no provision has been made in the books of accounts.

Two writ petitions have been fi led in the Honble Bombay High Court by Tulip Star Hotel and others against the orders dated September 21, 2005 and January 13, 2006 passed by the Industrial Court in a complaint fi led by the Union of Centaur-Tulip Employees. Both the writ petitions have by orders dated July 7, 2010 been disposed of by the Honble Bombay High Court. The orders of July 7, 2010 have been challenged by Tulip Star Hotel vide two appeals fi led in the Honble Bombay High Court and the same are currently pending.

6. The Government of Maharashtra had amended the provisions of Maharashtra Value Added Tax Act, 2002 (MVAT Act), and to provide that Value Added Tax (VAT) is leviable under the provisions of MVAT Act on sale of premises under construction by the enterprise engaged in the business of construction. Maharashtra Chambers of Housing Industry (MCHI) had fi led a writ petition challenging the constitutional validity of the amendment. By the Interim Order dated December 7, 2007, the Honble Bombay High Court, has directed the members of the MCHI not to register as Dealer under the provisions of MVAT Act and no order of assessment be passed, subject to compliance of certain formalities. This stay of the Honble Bombay High Court is still pending clearance.

Further, the Government of Maharashtra has introduced a scheme of composition for registered dealers under sub section (3A) of section 42 of the MVAT Act, vide Notifi cation No. VAT 1510 / CR-65 dated July 09, 2010. Under this scheme, a registered dealer who undertakes construction of fl ats or buildings and transfers them in pursuance of an agreement along with land, an amount of 1% of the aggregate amount specifi ed in the agreement or the stamp duty value, whichever is higher, shall be payable.

By virtue of the Premises Ownership Agreement / Letter of Allotment entered into by the Group with the purchasers of the premises, the purchaser is liable to pay, and Group is entitled to recover, any VAT that may be leviable on the said transaction and hence Group does not have any liability in connection with the same.

7. The Group has raised invoices on various tenants / licensees for rent / licence fee and service tax thereon, in accordance with the terms of the agreements with the tenants / licensees, which provide that the tenants / licensees are liable to pay the service tax on the rent / licence fees. The matter of levy of service tax on rent has been the subject matter of litigation in various courts and various courts have passed orders in connection with the same.

In cases where the Group has received the service tax amount on the rent / licence fees from the tenants / licensees, the same has been deposited with the Government Treasury, in accordance with the provisions of Finance Act, 1994. However, in the cases where the tenants / licensees have protested levy of service tax and contended that they are covered by the judgements of various courts, the Group has not received service tax on the rent / licence fee from the tenants / licensees and accordingly, same has not been deposited with Government Treasury.

As at March 31, 2011, the amount of such service tax (excluding interest and penalty) not received from the tenants is Rs. 677.84 Lakh (PY Rs. 448.25 Lakh). The amount of sundry debtors is net of the said service tax amount.

8. Work-in-progress as at March 31, 2011, includes an amount of Rs. 29,734.13 Lakh (PY Rs. 29,383.53 Lakh) in respect of the Companys property at Mulund, Mumbai (Mulund Property). The Government of Maharashtra had purportedly declared the Mulund Property to be covered by the provisions of the Maharashtra Private Forest (Acquisition) Act, 1975 along with various other properties in Mumbai. The Company had fi led a writ against the State of Maharashtra challenging the same in the Honble Bombay High Court and subsequent to the judgment of the Honble Bombay High Court, the Company had fi led Special Leave Petition (SLP) in the Honble Supreme Court.

By an order dated September 30, 2009, the Honble Supreme Court had held that the petitioners, who are prepared to pay the net present value, would be at liberty to pay the same to the Forest Department. Accordingly, the Company had paid an amount of Rs.1,091.00 Lakh, being the net present value payable, as determined by the Conservator of Forest.

By an order dated January 25, 2010, the Honble Supreme Court has vacated its stay and the Company is at liberty to make use of the land or to go on with the construction on the said land and create third party interest, subject to the decision of the MOEF. The matter is pending for fi nal disposal.

9. The Company and its subsidiaries recognise revenue on Percentage of Project Completion Method in respect of projects. One of the subsidiaries has claimed 100% deduction of Profit for computing the tax liability in respect of certain Residential Projects. Provision for Income-tax has been made, keeping in view, the following:

A. The Profits computed on Percentage of Project Completion Method are derived from construction and development project and are eligible for 100% deduction under section 80IB (10) of the Income-tax Act, 1961 subject to compliance of the conditions enumerated therein.

B. Clarification issued by Central Board of Direct Taxes that the deduction of Profits under section 80IB of the Income-tax Act, 1961, can be claimed on a year to year basis where Profits are shown on partial completion of the Project every year.

In the event, the subsidiary is unable to satisfy the conditions enumerated in section 80IB (10) of the Income-tax Act, 1961, more particularly of completing the Project within the specifi ed time period, the deduction shall stand withdrawn for the respective year(s), and the subsidiary would be called upon to pay Income-tax along with interest / penalty thereon.

8. 359 Preference shares of Rs. 10 Lakh each aggregating to Rs. 3,590 Lakh were due for redemption on January 1, 2011 either at par or for an aggregate amount of Re. 1, based on certain terms. Subsequently, in the Board meeting held on May 4, 2011, the Board has approved the redemption of the said Preference Shares for an aggregate amount of Re. 1. Also, the excess provision of dividend of Rs. 83.11 Lakh made during the year ended March 31, 2010 has also been reversed.

9. Employee Stock Option Scheme:

The Company instituted an Employees Stock Option Scheme 2009 (ESOP 2009) pursuant to the Board and Shareholders resolution both dated December 4, 2009. As per ESOP 2009, the Company is authorised to grant 1,443,356 options comprising equal number of equity shares in one or more tranches to the eligible employees of the Company and its subsidiaries. The employee will have the option to exercise the right within three years from the date of vesting of options.

10. Related Party Disclosure: A. Related Parties

i) Key Management Personnel and their Relatives:

(a) Vikas Oberoi

(b) Ranvir Oberoi

(c) Santosh Oberoi

(d) Bindu Oberoi

(e) Gayatri Oberoi

ii) Entities where Key Management Personnel have signifi cant infl uence:

(a) R. S. Estate Developers Private Limited

(b) Oberoi Foundation

(c) Splendor Developers Private Limited (from Oct. 1, 2009)

(d) Neelkamal Realtors & Builders Private Limited

(e) Sky Lark Buildcon Private Limited

(f) I - Ven Realty Limited

iii) Association of Persons

(a) Zaco Aviation

(b) Oasis Realty (Excess Share on Consolidation)

iv) Joint Ventures

(a) Siddhivinayak Realties Private Limited (Excess Share on Consolidation)

(b) Sangam City Township Private Limited (Excess Share on Consolidation)

11. Loans and advances includes sum of Rs. 16,302.16 Lakh towards MAT credit which is eligible for set of against future Income- tax liability of the Group and is available up to a specifi c period. In the event of inadequacy of future Profits, the same would be written of on expiry of specifi c period.

12. The Group is engaged in real estate development. The Group has acquired various lands / development rights and certain projects are at initial stage of implementation. The projects may be developed with various end uses, such as hotel, retail outlets, plots, residential, commercial and IT specifi c use. Such projects will be classifi ed under Fixed Assets or Inventories, as the case may be, based on ultimate end use as per fi nal development of the property. Pending such reclassifi cation on fi nal development of such properties, such plots and the cost incurred on development of projects is included under the head Work-in-progress or Plots of land as a part of Current Assets.

13. In our opinion, all Current Assets appearing in the Balance Sheet as at March 31, 2011 have a value on realisation in the ordinary course of the Groups business at least equal to the amount at which they are stated in the Balance Sheet.

14. Balance of Sundry Debtors, Sundry Creditors and Loans and Advances are subject to confi rmation from respective parties and reconciliation, if any.

15. Figures have been rounded of to the nearest Rupee and previous year fi gures have been regrouped, re-arranged and re-classifi ed wherever necessary to conform to current years classifi cation.


Mar 31, 2010

1. Contingent liabilities not provided for in respect of:

Sr. No. Particulars 31st March, 2010 31st March, 2009 Rupees Rupees

a Letter of Credit (Gross) 664,403 8,402,651

b. Bank Guarantee Gross) 253,037,456 186,694.446

c. Claim against Company

(i) In one of the residential projects, two persons have filed a complaint before the Consumer Dispute Redressal Forum, against the Company for alleged deficiency in services in failure to handover ownership and possession of flat. The Company believes that the aforesaid suits are prima facie not sustainable. The claim if any will be less than Rs. 0.5 Million.

(ii) In respect of property situated at Mumbai held by one of the subsidiary company, Company is also made a party to the suit filed against subsidiary company, seeking possession of a portion of Land admeasuring 108 Square meters. The Company believes that it is not liable since it is neither the owner nor the developer of the said property nor it has given any guarantees in respect of the same. The matter is pending before Hon''ble Bombay High Court.

(iii) a. In case of a Slum Rehabilitation Project carried out by Company at Mumbai, a person has filed a suit claiming possession of land admeasuring 750 sq. yards. The suit has been dismissed and plaintiff has preferred an appeal against the said order before the Hon''ble Bombay High Court. The plaintiff had also taken out a civil application for certain interim reliefs. The said civil application was rejected by the Hon''ble Bombay High Court on January 25, 2010. The appeal filed before the Hon''ble Bombay High Court is currently pending. The claim amount can not be ascertained.

b. In respect of project at Mumbai, two of the customers, have filed a suit claiming possession of two flats without making payment of the amount due and interest thereon. As per the interim order passed by the Hon''ble Bombay High Court, a Court Receiver has been appointed in respect of the said two flats and directed Receiver to put the said flats in to possession of said two customers. The Company was directed not to dispose off or create any third party rights in regards to both the flats and the customers were asked to deposit further sum of Rs. 1 Million each in court till disposal of suit.

c. In case of a Slum Rehabilitation Project of Company at Mumbai, a person has inter alia claimed alternative accommodation on ownership basis of a flat admeasuring 225 Sq. Feet Carpet Area under the SRA Scheme. The suit has been dismissed and the person has again approached another court on same grounds.

The Company believes that the aforesaid suits are not prima facie sustainable and therefore no provision has been made for the same._

(iv) Claim of US $ 375,000 (equivalent to Rs. 16.97 Million) made by an individual on the Company in connection with the termination of an agreement. The Company has contended that it is not liable to pay the amount inter alia since the agreement never came into effect. In view of the same, the Company has not made any provision in respect of the same.

(v) A vendor has issued a notice claiming Rs. 0.76 million towards amounts due in relation to advertisements issued on the instructions of the Company. The Company believes that the alleged demands are prima facie not sustainable.

(vi) In one of the projects of a special purpose vehicle (SPV) (in which the Company holds 31.67% interest), some persons have filed a suit for an order and declaration that they are entitled to an undivided share in the suit property admeasuring 33,083 square meters, the development rights of which has been acquired by the SPV. The SPV believes that the aforesaid proceedings are prima facie not sustainable and hence no provision has been made.

d. The Company has imported capital goods under the Export Promotion Capital Goods (EPCG) Scheme at a concessional rate of Customs Duty against export obligation. Indemnity Bond of Rupees 362.77 million (Net of Bank Guarantee) [P.Y. Rupees 274.63 million] is given in favour of the Government.

f. As of March 31, 2010, Income Tax assessments of the Company, in respect of earlier years has been completed and tax liability of Rs. 78.32 million has been determined over and above the provisions made in the books of accounts. The Income Tax Department has also issued the notice under section 274 of the Income Tax Act, 1961, in respect of the same. The Company has filed appeal against the said orders.

g. In one of the projects of a special purpose vehicle (SPV) (in which the Company holds 31.67% interest), SPV has entered into Development Agreements with various parties. Under the terms of certain agreements, it is the SPV''s responsibility to obtain certain approvals failing which, the certain amount paid can be forfeited by the parties. As on March 31, 2010, Company''s share of the total amounts paid initially by the SPV which can be forfeited by the parties is Rs. 4.70 Crores (Previous Year - Rs.4.61 Crores).

Out of which, an amount of Rs. 3.52 Crores (Previous Year - Rs.1.49 Crores) is liable to be forfeited, as the agreed time limit has expired. However, SPV''s management is confident of getting the approvals and/or able to get the time line extended by the parties and hence I no provision has been made in the books of SPV._ 3. The Company has raised invoices on various customers for Rent and Service Tax, thereon.

The matter of levy of Service Tax on Rent has been the subject matter of litigation in various courts.

The Hon''ble Bombay High Court has granted a stay for the levy of service tax on the renting of immovable property in pursuance of notice of Motion No 173 of 2008 in writ petition no. 1263 of 2008 vide order dated July 30, 2008. Additionally, the High Court of Delhi in a writ petition filed in the case of M/s. Home Solutions Retail India Ltd. v/s. Union of India dated April 18,2009 has held that renting of immovable property for use in the course or furtherance of business or commerce cannot be regarded as a service and hence would not be eligible to service tax.

In the light of the above, where the Company has received the Service Tax amount on the rentals from the customers, Company has deposited the same with the Government Treasury, in accordance with the provisions of Finance Act, 1994. However, in the cases, where the customers have protested levy of Service Tax and contended that they are covered by aforesaid judgement of Delhi High Court, the Company has not received Service Tax on the rentals from the customers and accordingly, same has not been deposited with Government Treasury.

In the Finance Budget for the year 2010-11, there is a proposal to levy service tax on rent with retrospective effect from 01.06.2007 by amending the definition of taxable service to include the renting service per se for the purpose of levy of service tax.

In case, the said proposal comes into force, the company has the right to recover service tax with interest by virtue of its agreement with tenants.

As at March 31, 2010, the amount of such Service Tax (excluding interest and penalty) protested by the tenants and not received from the tenants is Rs. 1,613,130. The amount of sundry debtors is net of the said service tax amount.

2. Government of Maharashtra has amended the provisions of Maharashtra Value Added TaxcAct, 2002 (MVAT Act), and issued a trade circular No. 23T of 2006 datedcSeptember 11, 2006. The Sales Tax Department has purported to take stand that the provisions of the MVAT Act have been amended to apply to ruling of the Supreme Court in the case of K. Raheja Development Corporation (141 STC 298). Accordingly, as per the Sales Tax Department, Valued Added Tax (VAT) is leviable under the provisions of MVAT Act on sale of premise under construction by the enterprise engaged in the business of construction.

Maharashtra Chambers of Housing Industries (MCHI) has filed a writ petition, being tax writ petition No. 2022 of 2007, challenging the constitutional validity of the amendment. By the Interim Order dated December 7, 2007, the Hon''ble High Court of Bombay, has directed the

members of the MCHI not to register as Dealer under the provisions of MVAT Act and no order of assessment be passed, subject to compliance of certain formalities.

By virtue of the Premises Ownership Agreement / Letter of Allotment entered into by the Company with the purchasers of the premises, the purchaser is liable to pay and Company is entitled to recover any VAT that may be leviable on said transaction.

In view of the above, the Company has not made provision for VAT leviable and collectible from the purchaser of the Premises.

* Number of Equity Shares for calculation of Earnings Per Share for all the years have been adjusted for Bonus Equity Shares in line with Accounting Standard 20 "Earnings per share" notified by the Companies (Accounting Standard) Rules 2006.

Note 1 - ''Depreciation Rs. 1,973,015 pertaining to Hotel Fixed Assets has been debited to pre- operative Expenditure

3. The Company''s Hotel at Goregaon is under construction and expenses incurred during the Pre-Opening, such as Purchases (net of closing stock of Food & Beverages), Employee Cost, Administration, Power & Fuel, etc. have been treated as Pre-Operative expenses and have been added to Capital Work in Progress. Correspondingly, the receipts of Rs. 70,181,441 (net of taxes and duties) during the Pre-Opening have been reduced from Pre-Operative expenses.

* Employer''s Contribution to Provident Fund amounting to Rs.5,342,975, Employer''s Contribution to Provident Fund amounting to Rs. 1,546,983 & Employer''s Contribution to ESIC amounting to Rs.31,083 pertaining to Hotel Fixed Assets has been debited to pre-operative Expenditure.

Defined Benefit Plans

Amount of Rs. 3,945,414 is recognised as expense on account of Gratuity and Rs 5,834,677 has been recognised as Expense on account of Leave Salary Provision and included in "Employee Cost" in Profit and Loss Account for the year ended March 31, 2010. Amount of Rs.276,585 on account of Gratuity and Rs.2,015,451 On account of leave Salary pertaining to Hotel Operations has been debited to pre-operative Expenditure.

4. On September 25, 2009, the Company has sold its entire holding in its Joint Venture Shashbindu Constructions Private Limited.

5. Cost of Construction / Development includes allocation of proportionate cost under the head Employee Cost, Administration Expenses and Interest & Finance Charges. Accordingly, Employee Cost, Administration Expenses and Interest & Finance Charges reflecting in Summary Statement of Profits and Losses are net of expenses allocated to cost of Construction / Development / Capitalised.

6. The Company is engaged in real estate development The Company has acquired various lands / development rights and certain projects are at initial stage of implementation. The projects may be developed with various end uses, such as hotel, retail outlets, plots, residential, commercial and IT specific use. Such projects will be classified under Fixed Assets, Investment Properties or Inventories, as the case may be, based on ultimate end use as per final development of the Property. Pending such reclassification on final development of such properties, such Plots and the cost incurred on development of projects is included under the head ''Work in Progress'' or "Plots of Land'' under the head Current Assets.

7. On December 4. 2009, Shareholders approved Employee stock option scheme (ESOP 2009), for the grant of 1,443,356 options eligible for equivalent number of Equity Shares to eligible employees of the Group as defined in the scheme. Option can be granted in one or more tranches.

8. In the opinion of the Board of Directors, all current assets, loans and advances appearing in the balance sheet as at March 31, 2010have a value on realisation in the ordinary course of the Company''s business at least equal to the amount at which they are stated in the balance sheet.

9. As the Company is involved in the business of real estate and other related activities the information pursuant to the provisions of paragraphs 3 (ii) and 4C of Part II of Schedule VI to the Companies Act, 1956 is not practicable.

10. The name of the Company has changed from "Kingston Properties Private Limited" to "Oberoi Realty Private Limited" and fresh certificate of incorporation dated October 23,2009 has been received from the Registrar of Companies, Maharashtra.

11. Further, Company has been converted into Public Limited Company and consequently name of the Company has changed to Oberoi Realty Limited. Fresh certificate of incorporation dated December 14, 2009 has been received from the Registrar of Companies, Maharashtra.

12. Figures have been rounded off to the nearest Rupees and previous years figures have been regrouped, re-arranged and re-casted wherever necessary.

13. Balance of sundry debtors, sundry creditors, loans and advances are subject to confirmation and reconciliation, if any

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