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Notes to Accounts of Ahluwalia Contracts (India) Ltd.

Mar 31, 2023

The expenditure (construction cost) incurred has been shown above under the main head "Investment Property" and subhead "Right of Use Assets (Building)". The Company has a right to Lease Right of Use Asset (Commercial Complex). The primary lease period of Commercial complex is 30 years which can be extended for a further period of 10 years at the option of the Company from the date of completion of the project. Thereafter, the Commercial Complex will be handed over to RSRTC. The Company does not have any right to sell the building but only to sub-lease. The Company has no further contractual obligations to purchase, construct or develop the said investment property.

There is a contractual obligation on the Company to maintain the commercial complex. The actual maintenance charges will be recovered from the occupants of the commercial complex. Revenue from advertisement, outside the building shall be shared between RSRTC & the Company in 50:50 ratio.

Fair value hierarchy and valuation technique

The fair value of investment property, being Building at Kota, has been determined by external, accredited independent registered valuer having appropriate recognized professional qualification and recent experience in the location and category of the property being valued. Fair value has been arrived at by using discounted cash flow method. The fair value measurement has been categorised as Level 3.

(i) Refer Note 49 for details pertaining to ECL

(ii) No trade or other receivables are due from directors or other officers of the Company either severally or jointly with any other person. Nor any trade or other receivables are due from firms or private companies in which any director is a partner, a director or a member.

(iii) Trade receivables have been hypothecated/pledged as security for borrowings/ working capital facilities, refer note 27 for details.

(iv) In determining the allowance for trade receivables the company has used practical expedients based on financial condition of the customer, ageing of the customer receivables and overdues, availability of collaterals and historical experience of collections from customers.

(i) Refer Note 49 for details pertaining to ECL

(ii) Trade Receivables have been hypothecated/pledged as security for borrowings, refer note 27 for details.

(iii) No trade or other receivables are due from directors or other officers of the Company either severally or jointly with any other person. Nor any trade or other receivables are due from firms or private companies in which any director is a partner, a director or a member, except due from Joint Venture '' 243.89 Lakhs (P.Y. '' Nil). (Refer Note 46 - Related Party Disclosure).

(ii) Terms / Rights attached to equity shares

The Company has only one class of equity share having a par value of '' 2/- per share. Each equity shareholder is entitled for one vote per share.

The Company declares and pays dividend in Indian Rupees. The dividend proposed by the Board of Directors of the Company is subject to the approval of the Members/Shareholders of the Company in the ensuing Annual General Meeting.

As per records of the Company, including its register of Shareholders/Members and other declarations received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownership of shares.

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. This distribution will be in proportion to the number of equity shares held by the shareholder.

Nature and purpose of reserves

(i) Securities Premium

The amount received in excess of face value of the equity shares is recognised in Securities Premium. This can be utilized in accordance with the provisions of the Companies Act, 2013.

(ii) General Reserve

This Reserve is created by an appropriation from one component of equity (generally retained earnings) to another, not being an item of Other Comprehensive Income. The same can be utilized by the Company in accordance with the provisions of the Companies Act, 2013.

(iii) Retained Earnings

Retained earnings are the profits that the Company has earned till date, less any transfer to General Reserve, dividends or other distributions paid to the shareholders.

(i) Term Loan outstanding from HDFC Bank of '' 0.34 Lakhs against Machinery is secured by way of hypothecation of specified Machinery/ Equipment. The term loan bear interest rate 8.40%. The same is repayable in 59 monthly installments that commenced from 05.06.2018.

As at March 31, 2022 - Security details

(i) Term Loan outstanding from Kotak Mahindra Bank of '' 18.24 Lakhs against Machinery is secured by way of hypothecation of specified Machinery/ Equipment. The term loan bear interest rate 8.50%. The same is repayable in 23 monthly installments that commenced from 20.01.2021.

(ii) Term Loan outstanding from Kotak Mahindra Bank of '' 18.24 Lakhs against Machinery is secured by way of hypothecation of specified Machinery/ Equipment. The term loan bear interest rate 8.50%. The same is repayable in 23 monthly installments that commenced from 20.01.2021.

(iii) Term Loan outstanding from HDFC Bank of '' 18.50 Lakhs against Machinery is secured by way of hypothecation of specified Machinery/ Equipment. The term loan bear interest rate 8.40%. The same is repayable in 59 monthly installments that commenced from 01.05.2018.

(iv) Term Loan outstanding from HDFC Bank of ''4.25 Lakhs against Machinery is secured by way of hypothecation of specified Machinery/ Equipment. The term loan bear interest rate 8.40%. The same is repayable in 59 monthly installments that commenced from 05.06.2018.

(v) Vehicle loan outstanding from HDFC Bank of ''4.32 Lakhs against Bus is secured by hypothecation of specified vehicle. The term loan bear interest rate is 9.00%. The same is repayable in 36 monthly installments that commenced 05.11.2019.

Working Capital loans from various banks under multiple banking arrangement are secured by way of

- First pari passu charges on all existing and future current assets of the company.

- Pari passu charges on current assets / fixed assets (movable) to IDFC Bank Limited so as to provide 1.0x cover.

- Equitable mortgage of property situated at B-21, Geetanjali Enclave, New Delhi owned by promoter director with Yes Bank Limited.

- Pledge of 20,00,000 equity shares to Bank of Maharashtra, 15,00,000 equity shares with Yes Bank Limited, 7,55,000 equity shares with RBL Bank Limited and 5,40,000 equity shares with IDFC Bank Limited by promoter directors and their relatives.

(i) Personal Guarantees of directors Mr. Bikramjit Ahluwalia & Mr. Shobhit Uppal are in all banks.

(ii) Personal Guarantees of directors Mr. Vikas Ahluwalia and relative of the directors Mrs. Sudershan Walia are in some of the banks.

- The working capital loan from Banks bear floating interest rate ranging from MCLR plus 0.00% to 3.00%.

As at March 31, 2022 - Security details

Working Capital loans from various banks under multiple banking arrangement are secured by way of

- First pari passu charges on all existing and future current assets of the company.

- Pari passu charges on current assets / fixed assets (movable) to IDFC Bank Limited so as to provide 1.0x cover.

- Equitable mortgage of property situated at B-21, Geetanjali Enclave, New Delhi owned by promoter director with Yes Bank Limited.

- Pledge of 50,00,000 No. of equity shares of the Company to Punjab & Sind bank, 20,00,000 equity shares to Bank of Maharashtra, 15,00,000 equity shares with Yes Bank Limited, 7,55,000 equity shares with RBL Bank Limited and 5,40,000 equity shares with IDFC Bank Limited by promoter directors and their relatives.

(i) Personal Guarantees of directors Mr. Bikramjit Ahluwalia & Mr. Shobhit Uppal are in all banks.

(ii) Personal Guarantees of directors Mr. Vikas Ahluwalia and relative of the directors Mrs. Sudershan Walia are in some of the banks.

- The working capital loan from Banks bear floating interest rate ranging from MCLR plus 0.00% to 3.00%.

Disclosure of returns / Statements submitted by the Company to the bank on quarterly basis in respect of borrowings: Name of Banks:

Bank of Maharastra, ICICI Bank Ltd, IDBI Bank Ltd, Yes Bank Ltd, IDFC First Bank Ltd, Indusind Bank Ltd ,Indian Bank, Axis Bank Ltd, HDFC Bank Ltd, State Bank of India, Union Bank of India, RBL Bank Ltd.

Note 40. : Contingent liabilities and commitments (to the extent not provided for) i) Contingent liabilities ('' in Lakhs)
Particulars	As at March 31, 2023	As at March 31, 2022
a) Claims against the company not Acknowledged as debts
(i) Value Added Tax liability	1,255.06	1,255.06
(ii) Excise duty demand	1,002.28	1,002.28
(iii) Service tax demand on alleged :-
- Wrong availment of abatement on account of free supply of material by the Client	598.98	598.98
- Composition scheme	7,417.63	7,417.63
- Exempted projects	3,193.27	3,193.27
- Others	1,334.73	1,406.46
(iv) Goods & Service Tax	444.22	74.59
(v) Income Tax demand	255.61	106.07
(vi) Provident fund demand	5,457.34	5,457.34
(vii) Demand of stamp duty on Real Estate Project	57.42	57.42
(viii) Other Claims not Acknowledged as debts against the company	2,949.64	3,066.68
b) Guarantees :
Guarantees given by the bankers on behalf of the company :-
Performance	46,167.55	31,675.59
Other	80,508.64	73,786.90
Indemnity Bonds/Performance Bonds/ Surety Bonds/ Corporate guarantees given to clients	1,969.59	3,490.29
c) Other money for which the company is contingently liable	-	-

The Company does not expect any reimbursement in respect of the above contingent liabilities and it is not practicable to estimate the timings of the cash outflows, if any. In respect of the matters above resolution of the arbitration/ appellate proceedings are pending and it is not probable that an outflow of resources will be required to settle the above obligations/ claims.

The Company does not expect any outflow of economic resources in respect of the above and therefore no provision is made in respect thereof.

The Company has filed claims of '' 93,381.70 Lakhs (Previous Year- '' 90,007.70 Lakhs) in several legal disputes related to construction contracts & in certain cases customers have lodged counter claims for '' 1,77,410.40 Lakhs (Previous Year'' 1,77,435.54 Lakhs) against the Company and same are pending before legal authorities. The Management does not expect any material adverse effect on its financial position.

iii) Commitments :		(7 in Lakhs)
Particulars	As at	As at
	31.03.2023	31.03.2022
Estimated amount of contracts remaining to be executed on capital account and not provided for	-	-
Estimated amount of contracts remaining to be executed on other than capital account and not provided for	5,755.72	2,750.72

Note 41. :

''Non-current trade receivables'' and retention money include '' 5084.93 Lakhs (31 March, 2022: '' 5142.68 Lakhs) outstanding as at 31 March, 2023 based on the terms and conditions implicit in the contracts and other receivables in respect of closed/ suspended projects. These claims are mainly in respect of cost over-run arising due to additional work, caused delays, suspension of projects, deviation in design and change in scope of work and other aspects; for which Company is at various stages of negotiation/discussion with the clients or under arbitration. Considering the contractual tenability, progress of negotiation/ discussion with the client, the management is confident of recovery of these receivables and is of the view that no further provision is required in this regard.

The information has been given in respect of such vendor to the extent they could be identified as Micro and Small Enterprises as per MSMED Act, 2006 on the basis of information available with the company and in cases of confirmation from vendors/disputed, interest for delayed payments has not been provided amounting to '' 133.34 Lakhs (March 31, 2022 - '' 86.27 Lakhs).

(i) The actuarial valuation of plan assets and the present value of the defined benefit obligation were carried out as at March 31, 2023. The present value of the defined benefit obligation and the related current service cost and past service cost, were measured using the Projected Unit Credit Method.

(ii) Discount rate is based on the prevailing market yields of Indian Government securities as at the Balance Sheet date for the estimated term of the obligations.

(iii) The salary escalation rate is arrived after taking into consideration the inflation, seniority, promotion and other relevant factors on long term basis.

The sensitivity analysis above have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the year and may not be representative of the actual change. It is based on a change in the key assumption while holding all other assumptions constant. When calculating the sensitivity to the assumption, the same method used to calculate the liability recognised in the Balance Sheet has been applied. The methods and types of assumptions used in preparing the sensitivity analysis did not change compared with the previous year.

Note 45. : LEASES:

(a) Company as a Lessee

(i) The Company has developed Commercial Complex (Right of Use) under license arrangement with RSRTC- (Refer Note No. 5). The Company has a right to Sub-lease Commercial Complex.

(ii) The Company has taken various residential, office and warehouse premises under operating lease agreements. These are generally not non-cancellable and are renewable by mutual consent. There are no restrictions imposed by Lease Agreement.

Basic EPS amounts are calculated by dividing the profit for the year attributable to equity holders of the company by the weighted average number of equity shares outstanding during the year. Diluted EPS amounts are calculated by dividing the profit attributable to equity holders of the company by the weighted average number of equity shares outstanding during the year plus the weighted average number of Equity shares that would be issued on conversion of all the dilutive potential Equity shares into Equity Shares.

(b) Out of the total revenue recognised under Ind AS 115 during the year, '' 2,79,922.23 Lakhs (P.Y. '' 2,66,772.10 Lakhs) is recognised over a period of time and '' 3,917.10 Lakhs (P.Y. '' 2,474.81 Lakhs) is recognised at a point in time.

2. Borrowings have fair values that approximate to their carrying amounts as it is based on the net present value of the anticipated future cash flows using rates currently available for debt on similar terms, credit risk and remaining maturities.

3. Security deposits received against leases and lease liabilities are fair valued at initial recognition. Valuation technique used and key inputs thereto for these Level 2 financial liabilities are determined using Discounted Cash Flow method using appropriate discounting rates. After initial recognition, they are carried at amortised cost.

4. There has been no change in the valuation methodology for Level 3 inputs during the year. There were no transfers between Level 1 and Level 2 during the year and no transfer into and out of Level 3 fair value measurements.

II Financial Risk Management Objectives and Policies

The Company''s activities expose it to a variety of financial risks namely market risk, credit risk and liquidity risk. The Company''s primary risk management focus is to minimize potential adverse effects of market risk on its financial performance. The Company''s risk management assessment & policies and processes are established to identify and analyze the risks faced by the Company, to set appropriate risk limits and controls, and to monitor such risks and compliance with the same.

Risk assessment & management policies and processes are reviewed regularly to reflect changes in market conditions and the Company''s activities. The Board of Directors and the Audit Committee is responsible for overseeing the Company''s risk assessment & management policies and processes.

The Company''s financial risk management policy is set by the management. Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from a change in the price of a financial instrument. The value of a financial instrument may change as a result of changes in the interest rates, foreign currency exchange rates, equity prices and other market changes that affect market risk sensitive instruments. The Company manages market risk which evaluates and exercises independent control over the entire process of market risk management. The management recommends risk management objectives and policies, which are approved by Senior Management and the Audit Committee.

a) 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. Credit risk arises from cash held with banks as well as credit exposure to clients, including outstanding accounts receivable. The maximum exposure to credit risk is equal to the carrying value of the financial assets. The objective of managing counterparty credit risk is to prevent losses in financial assets. The Company assesses the credit quality of the counterparties, taking into account their financial position, past experience and other factors. The Company establishes an allowance for impairment that represents its expected credit losses in respect of trade and other receivables. The management uses a simplified approach for the purpose of computation of expected credit loss for trade receivables.

The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics of the customer, including the default risk of the industry and country, in which the customer operates, also has an influence on credit risk assessment. Credit risk is managed through credit approvals, establishing credit limits, continuously monitoring the credit worthiness of customers to which the Company grants credit terms in the normal course of business and through regular monitoring of conduct of accounts. The Company also holds security deposits for outstanding trade receivables which mitigate the credit risk to some extent.

An impairment analysis is performed at each reporting date on an individual basis for major customers. The management believes that no further provision is necessary in respect of trade receivables based on historical trends of these customers.

The Company had one Customer (Central Govt. and State Govt. both) that owned the company more than '' 64,834.63 Lakhs (March 31, 2022 : '' 47,163.28 Lakhs) and accounted for approximately 73% (March 31, 2022 : 68%) of all the receivables outstanding.

The credit risk on liquid funds such as banks in current and deposit accounts is limited because the counterparties are banks with high credit-ratings.

b) Liquidity Risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due.

Ultimate responsibility for liquidity risk management rests with the board of directors, which has established an appropriate liquidity risk management framework for the management of the Company''s short-term, medium-term and long-term funding and liquidity management requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and committed borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities and by monitoring rolling forecasts of its liquidity requirements to ensure it has sufficient cash to meet operational needs while maintaining sufficient headroom on its undrawn committed borrowing facilities at all times so that the Company does not breach borrowing limits or covenants (where applicable) on any of its borrowing facilities.

* The table has been drawn up based on the undiscounted contractual maturities of the financial liabilities including interest that will be paid on those liabilities upto the maturity of the instruments, ignoring the call and refinancing options available with the Company, if any. The amounts included above for variable interest rate instruments for nonderivative liabilities is subject to change if changes in variable interest rates differ to those estimates of interest rates determined at the end of the reporting period.

The above excludes any financial liabilities arising out of financial guarantee contract.

In respect of financial guarantees provided by the company to banks and financial institutions, the maximum exposure which the company is exposed to is the maximum amount which the company would have to pay if the guarantee is called upon. Based on the expectation at the end of the reporting period, the company considers that is more likely than not that such an amount will not be payable under the guarantees provided.

c) Market Risk

Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from adverse changes in market rates and prices (such as interest rates, foreign currency exchange rates and commodity prices) or in the price of market risk-sensitive instruments as a result of such adverse changes in market rates and prices. Market risk is attributable to all market risk-sensitive financial instruments and all short term and long-term debt. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as equity price risk and commodity risk. Financial instruments affected by market risk include loans and borrowings, deposits, trade payables, trade receivables and other financial instruments. The Company is exposed to market risk primarily related to foreign exchange rate risk, interest rate risk and the market value of its investments. Thus, the Company''s exposure to market risk is a function of investing and borrowing activities.

i) Foreign exchange risk

Foreign exchange risk is the risk that the fair value of future cash flows of financial instrument will fluctuate because of changes in foreign exchange rate. The Company has no material exposure to foreign exchange risk as it does not generally have any financial assets or liabilities which are denominated in a currency other than INR.

ii) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company''s exposure to the risk of changes in market interest rates relates primarily to the Company''s long-term debt obligations with floating interest rates.

b. Interest rate sensitivity :

The sensitivity analysis below have been determined based on exposure to interest rates for borrowings at the end of the reporting period and the stipulated change taking place at the beginning of the financial year and held constant throughout the reporting period in case of borrowings that have floating rates.

III Capital Risk Management Policies and Objectives

The Company''s objective while managing capital is to safeguard its ability to continue as a going concern (so that it is enabled to provide returns and create value for its shareholders, and benefits for other stakeholders), support business stability and growth, ensure adherence to the covenants and restrictions imposed by lenders and / or relevant laws and regulations, and maintain an optimal and efficient capital structure so as to reduce the cost of capital and to maximise shareholders value. In order to maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders, issue new shares, obtain new borrowings or sell assets to reduce debt, etc.

The Company manages its capital structure and makes adjustments to it, in light of changes in economic conditions or its business requirements and the requirements of the financial covenants.

The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. Net debt is calculated as interest bearing loans and borrowings less cash and cash equivalents.

In order to achieve this overall objective, the Company''s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. Breaches in meeting the financial covenants would permit the bank to immediately call loans and borrowings. There have been no breaches in the financial covenants of any interest-bearing loans and borrowings in the current period.

IV Changes in liabilities arising from financing activities as per Ind AS 7 - Statement of cash flows

The major changes in the Company''s liabilities arising from financing activities are due to financing cash flows and accrual of financial liabilities. The Company did not acquire any liabilities arising from financing activities during business combinations effected in the current period or comparative period.

The Company disclosed information about its interest-bearing loans and borrowings. There are no obligations under finance lease and hire purchase contracts.

C. Basis of identifying operating segments, reportable segments, segment profit and definition of each reportable segment and segment composition:

(i) Basis of identifying operating segments:

Operating segments are identified as those components of the Company (a) that engage in business activities to earn revenues and incur expenses (including transactions with any of the Company''s other components) (b) whose operating results are regularly reviewed by the Company''s Chief Executive Officer to make decisions about resource allocation and performance assessment and (c) for which discrete financial information is available.

The accounting policies consistently used in the preparation of the financial statements are also applied to record revenue and expenditure in individual segments. Assets, liabilities, revenues and direct expenses in relation to segments are categorised based on items that are individually identifiable to that segment, while other items, wherever allocable, are apportioned to the segments on an appropriate basis. Certain items are not specifically allocable to individual segments as the underlying services are used interchangeably. The Company therefore believes that it is not practical to provide segment disclosures relating to such items, and accordingly such items are separately disclosed as ''unallocated''.

(ii) Reportable segments:

An operating segment is classified as reportable segment if reported revenue (including inter-segment revenue) or absolute amount of result or assets exceed 10% or more of the combined total of all the operating segments.

(iii) Segment profit:

Performance of a segment is measured based on segment profit (before interest and tax), as included in the internal management reports that are reviewed by the Company''s Chief Executive Officer.

(iv) Segment composition:

a) Revenue from construction contract

b) Lease Rental from Investment Property (Bus Terminal & Depot and Commercial Complex) at Kota

c) Other comprises Inventory Property

D. Revenue from one customer (Central Govt. and State Govt. both) in Construction Contract segment amounting to '' 2,16,201.74 Lakhs (March 31, 2022 : '' 2,24,459.91 Lakhs) and accounted for approximately 77% (March 31, 2022 : 84%) contributed to more than 10% of the entity''s total revenue.

Note 53. :

The Company has claimed Input Tax Credit (ITC) of '' 1,783.64 lakhs in Trans I filed under GST regime as on 01.07.2017 in respect of VAT Input credit for the period from 2009 to 2013. The Company has also availed Amnesty Scheme 2013 of Delhi Government for the period from 2009 to 2013. The Company is not entitled to VAT Input credit for the period for which amnesty scheme was availed as per the order of Commissioner VAT, New Delhi dated 17.01.2018. The Company has accordingly not recognised the ITC for the said period in the books.

Note 54. : INFORMATION ON DETAILS OF LOANS, GUARANTEES AND INVESTMENTS UNDER SECTION 186 OF THE COMPANIES ACT, 2013:-

(i) Detail of investments made are given in note no. 7.

(ii) There are no loans given by the Company in accordance with Section 186 of the Act read with rules issued thereunder.

(iii) There are no guarantees issued by the Company to any parties.

Note 55. :

The company has not been declared as wilful defaulter by any bank or financial institution or government or any government authority.

Note 56. : ADDITIONAL REGULATORY INFORMATION REQUIRED BY SCHEDULE III OF COMPANIES ACT, 2013

(i) Details of Benami property: No proceedings have been initiated or are pending against the company for holding any Benami property under the Benami Transactions (Prohibition) Act, 1988 and the rules made thereunder.

(ii) Utilisation of borrowed funds and share premium: 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.

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.

(iii) Compliance with approved scheme(s) of arrangements: The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous financial year.

(iv) Undisclosed income: There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the Income Tax Act, 1961, that has not been recorded in the books of account.

(v) Details of crypto currency or virtual currency: The Company has not traded or invested in Crypto currency or Virtual Currency during the current or previous year.

(vi) Valuation of PPE, Intangible Assets and Investment property: The Company has not revalued its property, plant & equipment (including Right Of Use Assets) or intangible assets or both during the current or previous year.

(vii) Loans/ advances to specified persons : There is no grant of loans/ advances in the nature of loans repayable on demand.

The preparation of financial statements in conformity with the recognition and measurement principles of Ind AS requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting period end. Although these estimates are based upon management''s best knowledge of current events and actions, historical experience and other factors, including expectations of future events that are believed to be reasonable, actual results could differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

A. Significant Judgements in applying accounting policies

The judgements, apart from those involving estimations (see note below), that the Company has made in the process of applying its accounting policies and that have a significant effect on the amounts recognised in these financial statements pertain to :

(i) Kota Project : Investment Property :

The Company has developed (Bus Depot and Commercial Complex at Kota) for Rajasthan State Road Transport Corporation (RSRTC) under an "Agreement to Develop" / License agreement at a cost of '' 12,926.27 Lakhs spent till 31.03.2023 including discounted value of license fees of '' 2,992.77 Lakhs recognised on application of Ind AS 116 effective from 01.04.2019 (upto 31.03.2022 '' 12,729.55 Lakhs) on the land belonging to RSRTC under license arrangement. The expenditure (construction cost) incurred has been shown in Balance Sheet under the main head "Investment Property" and sub-head "Right of Use Assets (Building)". The Company has a right to Lease Right of Use Asset (Commercial Complex). The primary lease period of Commercial complex is 30 years which can be extended for a further period of 10 years at the option of the Company from the date of completion of the project. Thereafter, the Commercial Complex will be handed over to RSRTC.

Determination of applicability of Appendix A of Service Concession Arrangement (''SCA''), under Ind AS - 115 ''Revenue from Contracts with Customers'':

This Interpretation applies to public-to-private service concession arrangements if:

(a) the grantor controls or regulates what services the operator must provide with the infrastructure, to whom it must provide them, and at what price; and

(b) the grantor controls through ownership, beneficial entitlement or otherwise any significant residual interest in the infrastructure at the end of the term of the arrangement.

In the given case, though RSRTC controls/ regulates what services the Company must provide with the infrastructure, rental of commercial complex in the given case. However it does not regulate: to whom the Company must provide them and at what price. Since the first condition is not met, the management has concluded that SCA does not apply in this case.

Determination of applicability of Ind As 40 - Investment Property:

In view of the fact that the Company constructed the building at its own cost and in view of the substantial rights entrusted with the Company, the substance of the legal agreements with RSRTC, in the judgement of the management, is that the Company is the beneficial owner of the Building though legal title vests with RSRTC and the license fees payable by the Company to RSRTC is in effect for use of land.

The cost of construction represents building held by the Company to earn rentals rather than for use in the production or supply of goods or services or for administrative purposes; or for sale in the ordinary course of business. The commercial complex is not intended for sale in ordinary course of business of the Company.

Accordingly, the management has concluded that Ind As 40 shall apply in its case and the cost of construction shall be accounted for as investment property under Ind AS 40.

(ii) Leases :

Ind AS 116 requires lessees to determine the lease term as the non-cancellable period of a lease adjusted with any option to extend or terminate the lease, if the use of such option is reasonably certain. The Company makes an assessment on the expected lease term on a lease-by-lease basis and thereby assesses whether it is reasonably certain that any options to extend or terminate the contract will be exercised. In evaluating the lease term, the Company considers factors such as any significant leasehold improvements undertaken over the lease term, costs relating to the termination of the lease and the importance of the underlying asset to Company''s operations taking into account the location of the underlying asset and the availability of suitable alternatives. The lease term in future periods is reassessed to ensure that the lease term reflects the current economic circumstances. After considering current and future economic conditions, the Company has concluded that no changes are required to lease period relating to the existing lease contracts.

J. Key sources of estimation uncertainty

The following are the key assumptions concerning the future, and other key sources of estimation uncertainty at the end of the reporting period that may have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year :

(i) Impairment of trade receivables:

The impairment provisions for trade receivables are based on lifetime expected credit loss based on a provision matrix. Lifetime expected credit losses are the expected credit losses that result from all possible default events over the expected life of a financial instrument. The provision matrix takes into account historical credit loss experience and is adjusted for forward looking information. The expected credit loss allowance is based on the ageing of the receivables that are due and the rates used in the provision matrix.

(ii) Fair value measurements of financial instruments:

In estimating the fair value of a financial asset or a financial liability, the Company uses market-observable data to the extent it is available. Where active market quotes are not available, the management applies valuation techniques to determine the fair value of financial instruments. This involves developing estimates, assumptions and judgements consistent with how market participants would price the instrument.

(iii) Valuation of investment property :

Investment property is stated at cost. However, as per Ind AS 40 there is a requirement to disclose fair value as at the balance sheet date. The Company engaged independent valuer to determine the fair value of its investment property as at reporting date.

Right of Use Assets (Building) :

The determination of the fair value of investment property, viz. right of use assets (Building) at Kota requires the use of estimates such as future cash flows from the assets (such as lettings, future revenue streams and the overall repair and condition of the property and property operating expenses etc.) and discount rates applicable to those assets. As at March 31, 2023 and As at March 31,2022, the property is fair valued based on valuations performed by an independent valuer who holds a recognised and relevant professional qualification and has relevant valuation experience.

(iv) Estimation of net realisable value for inventory property

Inventory property is stated at the lower of cost and net realisable value (NRV).

NRV for inventory property is assessed by reference to market conditions and prices existing at the reporting date and is determined by the Company after taking suitable external advice and in the light of recent market transactions, as well as the estimated cost to be incurred for completion of the construction.

(v) Actuarial Valuation:

The determination of Company''s liability towards defined benefit obligation viz. gratuity and other long term employee benefit obligation viz. long term compensated absences to employees is made through independent actuarial valuation including determination of amounts to be recognised in the Statement of Profit and Loss and in other comprehensive income. Such valuation depend upon assumptions determined after taking into account inflation, seniority, promotion and other relevant factors such as supply and demand factors in the employment market. Information about such valuation is provided in notes to the standalone financial statements.

(vi) Claims, Provisions and Contingent Liabilities:

The Company has ongoing litigations with various regulatory authorities and third parties. Where an outflow of funds is believed to be probable and a reliable estimate of the outcome of the dispute can be made based on management''s assessment of specific circumstances of each dispute and relevant external advice, management provides for its best estimate of the liability. Such accruals are by nature complex and can take number of years to resolve and can involve estimation uncertainty. These estimates could change substantially over time as new facts emerge and each dispute progresses. Information about such litigations is provided in notes to the standalone financial statements.

(vii) Useful lives of property, plant and equipment, investment property and intangible assets:

As described in the significant accounting policies, the Company determines and also reviews the estimated useful lives of property, plant and equipment, investment property and intangible assets at the end of each reporting period. Such lives are dependent upon an assessment of both the technical life of the assets and also their likely economic life, based on various internal and external factors including relative efficiency and operating costs. Accordingly, depreciable lives are reviewed annually using the best information available to the Management.

(viii) Retention money

The payment terms followed by the Company are generally followed by the most of the companies (customers as well as contracts) in the construction contracts and are customary in the construction industry. The customer pays advance before start of the project and retains a specified percentage of the contract value as retention money to ensure successful completion of the construction activities. These are generally accepted industry practice. Moreover, these contracts are generally based on competitive bidding and are awarded based on the lowest evaluated price. The retention money is contractually due for payment by customer on completion of the project after a specified defect liability period which is generally 1-3 years and to fulfill the customer''s satisfaction of conditions specified and adequate protection to meet obligations in the contract. Similarly, customer also pays advances before start of the execution of the project which reflects commitment from the customer and the same is being adjusted against running bills. The retention money in a contract does not have any financing component as the same is for protecting/ ensuring the performance commitment . Therefore, the management believes that there is no time value of money involved.

The Indian Parliament has approved the code on Social Security, 2020 which would impact the contributions by the company towards Provident Fund and Gratuity. The ministry of Labour and Employment has released draft rules for the Code on Social Security, 2020 on November 13, 2020, and has invited suggestions from stakeholders which are under active consideration by the Ministry. The Company will assess the impact and its evaluation once the subject rules are notified and will give appropriate impact in its financial statements in the period in which, the Code becomes effective and and the related rules to determine the financial impact are published.

Note 59. :

There are no significant subsequent events that would require adjustments or disclosures in the financial statements as on the balance sheet date.

Note 60. :

The figures for the previous year have been regrouped and / or reclassified wherever necessary to conform with the current year presentation.

Mar 31, 2018

1. CORPORATE INFORMATION

Ahluwalia contracts (India) limited (hereinafter referred to as âthe Companyâ) is a Public Ltd. Company domiciled in India, having its registered office located at A-177, Okhla Industrial Area, Phase-I, New Delhi-110020, India and incorporated under the provisions of the Companies Act, 1956. The Company is primarily engaged in the business of construction activities. The Company has also diversified into developing and operating commercial complex under license arrangement and is also engaged in the real estate trading business. The Company has its primary listings on BSE Limited, National Stock Exchange of India Limited (NSE) and Calcutta Stock Exchange Ltd.

These financial statements were authorized by Board of Directors for issuing accordance with a resolution passed on 30th May, 2018.

2 DISCLOSURES AS REQUIRED BY INDIAN ACCOUNTING STANDARD (IND AS) 101 FIRST TIME ADOPTION OF INDIAN ACCOUNTING STANDARDS

The Company has adopted Indian Accounting Standards (Ind AS) as notified by the Ministry of Corporate Affairs with effect from 1st April, 2017 with a transition date of 1st April, 2016. These financial statements for the year ended 31st March, 2018, are the Companyâs first Ind AS financial statements which have been prepared in accordance with Ind AS. For periods up to and including the year ended 31st March, 2017, the Company prepared its financial statements in accordance with accounting standards notified under section 133 of the Companies Act 2013, read together with relevant rules of the Companies (Accounts) Rules, 2014 (Previous GAAP).

Accordingly, the Company has prepared financial statements which comply with Ind AS applicable for periods ending on 31st March, 2018, together with the comparative period data as at and for the year ended 31st March, 2017, as described in the summary of significant accounting policies. The Company has prepared the opening balance sheet as per Ind AS as of 01st April, 2016 (the transition date) by:

a. recognising all assets and liabilities whose recognition is required by Ind AS,

b. not recognising items of assets or liabilities which are not permitted by Ind AS,

c. reclassifying items from previous Generally Accepted Accounting Principles (GAAP) to Ind AS as required under Ind AS, and

d. applying Ind AS in measurement of recognised assets and liabilities.

In preparing these Ind AS financial statements, the Company has availed certain exemptions and exceptions in accordance with Ind AS 101, as explained below. The resulting difference between the carrying values of the assets and liabilities in the financial statements as at the transition date under Ind AS and Previous GAAP have been recognised directly in equity (retained earnings or another appropriate category of equity). This note explains the adjustments made by the Company in restating its financial statements prepared under previous GAAP, including the Balance Sheet as at 1st April, 2016 and the financial statements as at and for the year ended 31st March, 2017.

A. IND AS OPTIONAL EXEMPTIONS FROM RETROSPECTIVE APPLICATION

(i) Investments in subsidiary

When an entity prepares separate financial statements, Ind AS 27 requires it to account for its investments in subsidiary either at cost; or in accordance with Ind AS 109. If a first-time adopter measures such an investment at cost in accordance with Ind AS 27, it shall measure that investment at one of the following amounts in its separate opening Ind AS Balance Sheet:

(a) cost determined in accordance with Ind AS 27; or

(b) deemed cost. The deemed cost of such an investment shall be its:

(i) fair value at the entityâs date of transition to Ind ASs in its separate financial statements; or

(ii) previous GAAP carrying amount at that date.

A first-time adopter may choose either (i) or (ii) above to measure its investment in its subsidiary that it elects to measure using a deemed cost.

The Company has availed the exemption and has measured its investment in subsidiary at deemed cost being the previous GAAP carrying amount at that date.

(ii) deemed cost for property, plant and equipment, investment property and intangible assets

Ind AS 101 permits a first-time adopter to elect to continue with the carrying value for all of its property, plant and equipment as recognized in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition. This exemption can also be used for intangible assets covered by Ind AS 38 Intangible Assets and investment property covered by Ind AS 40 Investment Properties. Accordingly, the Company has elected to measure all of its property, plant and equipment, intangible assets and investment property at their previous GAAP carrying value.

(iii) designation of previously recognized financial instruments

Ind AS 101 allows an entity to designate investments in equity instruments at FVTOCI on the basis of the facts and circumstances at the date of transition to Ind AS. The Company has elected to apply this exemption for its investment in equity investments.

B. Mandatory exceptions from retrospective application (i) estimates

An entityâs estimates in accordance with Ind ASs at the date of transition to Ind ASs shall be consistent with estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error.

On an assessment of the estimates made under the Previous GAAP financial statements, the Company has concluded that there is no necessity to revise the estimates under Ind AS (except for adjustments to reflect any difference in accounting policies), as there is no objective evidence that those estimates were in error. However, estimates, that were required under Ind AS but not required under Previous GAAP, are made by the Company for the relevant reporting dates, reflecting conditions existing as at that date without using any hindsight.

c. Transition to Ind AS - Reconciliations

The following reconciliations provide the explanations and quantification of the effect of significant differences arising from the transition from Previous GAAP to Ind AS in accordance with Ind AS 101:

I. Reconciliation of Balance sheet as previously reported under IGAAP to Ind AS as at 1st April, 2016 and 31st March, 2017

II. Reconciliation of Statement of Profit and Loss as previously reported under IGAAP to Ind AS for the year ended 31st March, 2017

III. Reconciliation of Equity as at 1st April, 2016 and 31st March, 2017

IV. Reconciliation of Total Comprehensive Income for the year ended 31st March, 2017

V. Reconciliation of Cash Flow Statement for the year ended 31st March, 2017

The presentation requirements under Previous GAAP differs from Ind AS and hence, Previous GAAP information have been regrouped for ease of reconciliation with Ind AS. The Regrouped Previous GAAP information is derived from the Financial Statement of the Company prepared in accordance with Previous GAAP.

FOOTNOTES TO THE RECONCILIATION OF EQUITY AS AT 1 APRIL 2016 AND 31ST MARCH, 2017 AND STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED 31ST MARCH, 2017 :

1 Temporary Structures not considered as Property, plant & equipment

Property, plant and equipment (PPE) are tangible items that are expected to be used during more than one period. Since Temporary Structures having a life of one year only, do not meet the definition of property, plant and equipment, they are not considered as a PPE and hence expensed off/adjusted in retained earnings as applicable.

2 Trade Receivables - Expected Credit Losses

Under the Previous GAAP, provision for bad debt was recognised for the doubtful debtors on a case to case basis. However, under Ind AS, the Company assesses impairment based on expected credit losses (ECL) model for measurement and recognition of impairment loss on the trade receivables by following simplified approach. The application of simplified approach does not require the company to track changes in credit risk. Rather, it recognizes impairment loss allowance based on lifetime ECLs at each reporting date, right from its initial recognition. Loss allowance on trade receivables is measured at an amount equal to life time expected losses i.e. expected cash shortfall. The Company measures the expected credit loss associated with its assets based on historical trend and experience, industry practices and the business environment in which the entity operates or any other appropriate basis.

Hence, trade receivables have been reduced and correspondingly impact for additional allowance for credit loss has been taken in Retained Earnings on the date of transition and in Statement of Profit & Loss for FY 2016-17.

3 Security deposits

Under the previous GAAP interest free lease security deposits received from lessees (that are refundable in cash on completion of the lease term) are recorded at their transaction value. Under Ind AS, all financial liabilities are required to be recognised at fair value. Accordingly, the company has fair valued these security deposits under amortized cost method under Ind AS. Difference between the fair value and transaction value of the security deposit has been recognised as deferred rent. This amount is subsequently credited to the Statement of Profit and Loss on a straight line basis as rental income. Further, interest expense computed on the present value of the security deposit is recognised over the tenure of the security deposit using the EIR method. Consequent to this change, the amount of security deposits decreased and the deferred rent increased. The profit for the year and total equity increased due to amortisation of the deferred rent which is partially off-set by the notional interest expense recognised on security deposits.

4 Fair valuation of investments

Under previous GAAP, non-current investments were stated at cost. Where applicable, provision was made to recognise a decline, other than temporary, in valuation of such investments. Under Ind AS, such investments are carried at fair value through profit or loss (FVTPL) or fair value through other comprehensive income (FVTOCI) (except for investment in subsidiaries, associates and joint venture). The company has accordingly classified equity instruments as Fair Value through Other Comprehensive Income (FVTOCI) through an irrevocable election at the date of transition. The resulting fair value changes of these investments have been recognised in retained earnings as at the date of transition and subsequently in the statement of profit and loss as âother comprehensive incomeâ for the year ended 31st March, 2017.

5 defined benefit plans

i. Actuarial gain/(loss) - Under Previous GAAP the actuarial gain/(loss) of defined benefit plans had been recognised in Statement of Profit and Loss. Under Ind AS, the remeasurement gain/(loss) on net defined benefit plans is recognised in Other Comprehensive Income net of tax.

ii. Net interest cost on defined benefit plans - Under Previous GAAP the interest cost on defined benefit liability and expected return on plan assets was recognised as employee benefit expenses in the Statement of Profit and Loss. Under Ind AS, the Company has recognised the net interest cost on defined benefit plans as finance cost.

There is, however, no impact on the total equity as at 31st March, 2017.

6 deferred taxes

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

7 Investment property

Under previous GAAP, Building and capital work-in-progress( Kota Project) were disclosed as property plant and equipment. Based on Ind AS 40- Investment Property, since they were held for rental income, the Company has reclassified them as Investment Property in the Opening Balance Sheet as at 01st April, 2016 . There is no impact on the total equity or profit as a result of this adjustment.

8 Inventory property

Under previous GAAP payments made for properties being flats under construction, under construction linked payment plans, acquired for sale in the ordinary course of business was disclosed as short-term loans and advances under Current Assets. Under Ind As, these properties are considerded as inventory property under the head Inventories and is measured at the lower of cost and net realisable value (NRV).

* Represents construction cost of Bus Depot and Commercial Complex at Kota for Rajasthan State Road Transport Corporation (RSRTC) under an âAgreement to Developâ on the land belonging to RSRTC under license arrangement for 30 years which can be further extended by 10 years at the option of the Company.Thereafter, the Commercial Complex will be handed over to RSRTC.

(i) In the year 2016-17, addition to building amounting Rs.8,930.67 lakhs includes amount of interest on borrowings capitalised up to 01.04.2016 of Rs.1,391.21 lakhs.

(ii) For investment property existing as at 01.04.2016, i.e., its date of transition to Ind AS, the Company has used Indian GAAP carrying value as deemed costs.

**Since as at 01.04.2016, the building was under construction stage, the Company is not able to reliably measure the fair value of such building and hence, it has not disclosed the fair value as at that date.

Fair value hierarchy and valuation technique

The fair value of investment property, being Building at Kota, has been determined by external, accredited independent property valuer having appropriate recognized professional qualification and recent experience in the location and category of the property being valued. Fair value has been arrived at by using discounted cash flow method. The fair value measurement has been categorised as Level 3.

(v) Pursuant to an Agreement to Develop with Rajasthan State Road Transport Corporation (RSRTC) the Company has developed a building (being Bus Terminal and Depot and Commercial Complex at Kota) for Rajasthan State Road Transport Corporation (RSRTC) under an âAgreement to Developâ on 19.09.2007 at a cost of Rs.8930.67 Lakhs spent till 31.03.2017 on the land belonging to RSRTC under license arrangement. The license fee payable to RSRTC are as follows :

The expenditure (construction cost) incurred has been shown above under the main head âInvestment Propertyâ and sub-head âBuildingâ. The Company has a right to Lease Commercial Complex. The period of lease of right of Commercial complex is 30 years, (primary lease period) which can be extended for a further period of 10 years at the option of the Company from the date of completion of the project. Thereafter, the Commercial Complex will be handed over to RSRTC. The Company does not have any right to sell the building but only to lease as mentioned above. The Company has no further contractual obligations to purchase, construct or develop the said investment property. The maintenance obligations of the Company are as follows :

The maintenance of Bus Terminal and Depot is the responsibility of RSRTC. There is a contractual obligation on the Company to maintain the commercial complex. The actual maintenance charges will be recovered from the occupants of the commercial complex.

Revenue from advertisement, outside the building shall be shared between RSRTC & the Company in 50:50 ratio. Revenue from advertisement, inside the building is not required to be shared with RSRTC.

Refer Note 51 for details pertaining to ECL

(i) No trade or other receivable are due from directors or other officers of the Company either severally or jointly with any other person. Nor any trade or other receivable are due from firms or private companies respectively in which any director is a partner, a director or a member.

(ii) Trade receivables have been pledged as security for borrowings/ working capital facilities, refer note 27 for details.

(ii) Terms / Rights attached to equity shares

The Company has only one class of equity share having a par value of Rs.2/- per share. Each equity shareholder is entitled for one vote per share.

Nature and purpose of reserves

(i) Securities premium Reserve

The amount received in excess of face value of the equity shares is recognised in Securities Premium Reserve. This can be utilized in accordance with the provisions of the Companies Act, 2013.

(ii) General Reserve

(iii) Retained earnings

Retained earnings are the profits that the Company has earned till date, less any transfer to General Reserve, dividends or other distributions paid to the shareholders.

As at 31st march, 2018 - Security details

(i) Term Loan outstanding from HDFC Bank of Rs.77.73 lakhs against Machinery is secured by way of hypothecation of specified Machinery/ Equipment. The term loan bear interest rate 8.40%. The same is repayable in 59 monthly installments commencing from 01.05.2018.

(ii) Vehicle Loan outstanding from HDFC Bank of Rs.13.69 lakhs is secured by way of hypothecation of specified vehicle. The term loan bear interest rate 8.40%. The same is repayable in 36 monthly installments commencing from 07.05.2017.

(iii) Vehicle Loan outstanding from HDFC Bank of Rs.0.19 lakhs is secured by way of hypothecation of specified vehicle. The term loan bear interest rate 11.50%. The same is repayable in 36 monthly installments commencing from 05.05.2015.

As at 31.03.2017 - Security details

(i) Term Loan outstanding from SREI Equipment Finance Ltd. of Rs.12.04 lakhs secured by way of hypothecation of specified machinery. The term loan bear interest rate 13.38%. The same is repayable in 34 monthly installments commencing from 22.01.2015.

(ii) Vehicle Loan outstanding from HDFC Bank of Rs.2.38 lakhs is secured by way of hypothecation of specified vehicle. The term loan bear interest rate 11.50%. The same is repayable in 36 monthly installments commencing from 05.05.2015.

As at 01st April, 2016 - Security details

(i) Term loan from Kotak Mahindra Bank Ltd of Rs.750.00 lakhs is secured by way of:

a) Subservient charge on all existing and future current assets of the company.

b) Equitable mortgage by way of first charge on land and building of M-1, Saket, New Delhi owned by the relatives of promoter director.

c) Personal Guarantee of promoter directors i) Mr. Bikramjit Ahluwalia ii) Mr. Shobhit Uppal iii) Mrs. Sudershan Walia, promoter and relative of promoter director

The term loan bears interest rate 11.50%. The same is repayable in 8 quarterly installments commencing from 08.02.2015.

(ii) Term loans outstanding from L&T Finance Ltd of Rs.57.87 lakhs are secured by way of hypothecation of specified machineries. The term loans bear interest rate from 13.50% to 14.00%. The same are repayable in 36 monthly installments commencing from 15.01.2014.

(iii) Term loans outstanding from SREI Equipment Finance Ltd of Rs.92.47 lakhs are secured by way of

a) Hypothecation of specified machineries.

b) Corporate Guarantees of subsidiaries 1) M/s. Premsagar Merchants Pvt Ltd., 2) M/s. Paramount Dealcomm Pvt Ltd., 3) M/s. Splendor Distributors Pvt Ltd., 4) M/s. Dipesh Mining Pvt Ltd 5) M/s. Jiwan Jyoti Traders Pvt Ltd.

The term loans bear interest rate from 13.38% to 15.63% as on 31.03.2016. The terms loan are repayable in 24 &36 monthly installments commencing from 15.07.2014 & 22.01.2015.

(iv) Vehicle Loans outstanding from HDFC Bank of Rs.6.17 lakhs is secured by way of hypothecation of specified vehicles. The term loan bear interest rate 11.50%. The same are repayable in 24 & 36 monthly installments commencing from 07.08.2014 & 05.05.2015.

Working capital loans From various banks are secured by way of

- First pari pasu charges on all existing and future current assets of the company.

- Pari pasu charges on current assets / fixed assets to IDFC Bank Limited so as to provide 1.0x cover.

- Equitable mortgage of properties situated as B-21, Geetanjali Enclave, New Delhi owned by promoter director with Yes Bank Limited.

- Pledge of 1,02,71,380 No. of equity shares to Punjab & Sind bank, 20,00,000 equity shares to Bank of Maharashtra, 22,99,000 equity shares with Yes Bank Limited, 7,55,000 equity shares with RBL Bank Limited and 5,40,000 equity shares with IDFC Bank Limited by promoter directors and their relatives.

- Personal Guarantees of directors (i) Mr. Bikramjit Ahluwalia (ii) Mr. Shobhit Uppal, and relatives of the director (iii) Mrs. Sudershan Walia and (4) Mr.Vikaas Ahluwalia.

- The working capital loans from Banks bear floating interest rate ranging from MCLR plus 0.75% to 2.00% or Base Rate plus 1.50% to 2.00%.

- Unsecured loan includes Rs.1,000 lakhs bearing interest @ 10% p.a. which has been repaid during the year. Balance unsecured loan is interest free. Loan is payable on demand.

The Company does not expect any reimbursement in respect of the above contingent liabilities and it is not practicable to estimate the timings of the cash outflows, if any. In respect of the matters above, resolution of the arbitration/ appellate proceedings are pending and it is not probable that an outflow of resources will be required to settle the above obligations/claims.

Based on discussions with the advocates & consultants, the Company believes that there are fair chance of decisions in its favour in respect of all items listed in (a)(i) to (a)(vi) above. The replies/appeals have been filed before appropriate authorities/Courts. Disposal is awaited. The Company does not expect any outflow of economic resources in respect of the above and therefore no provision is made in respect thereof.

3 âUnbilled work-in-progress (Other current financial assets)â and âNon-current trade receivablesâ include â Nil (31st March, 2017: Rs.619.41 lakhs, 31st March, 2016: Rs.889.54 lakhs ) and Rs.8,995.05 lakhs (31st March, 2017: Rs.8,571.19 lakhs, 31st March, 2016: Rs.5,993.87 lakhs), respectively, outstanding as at 31st March, 2018 representing various claims raised earlier, based on the terms and conditions implicit in the contracts and other receivables in respect of closed/suspended projects. These claims are mainly in respect of cost over-run arising due to additional work, caused delays, suspension of projects, deviation in design and change in scope of work and other aspects; for which Company is at various stages of negotiation/discussion with the clients or under arbitration. Considering the contractual tenability, progress of negotiation/ discussion with the client, the management is confident of recovery of these receivables.

4 The Company has initiated the process of obtaining confirmation from suppliers who have registered themselves under the Micro Small Medium Enterprises Development Act, 2006 (MSMED Act, 2006). Based on the information available with the Company, the balance due to Micro Small Enterprises as defined under the MSMED Act, 2006 is as under:

The information has been given in respect of such vendor to the extent they could be identified as Micro and Small Enterprises as per MSMED Act, 2006 on the basis of information available with the company and in cases of confirmation from vendors, interest for delayed payments has not been provided amounting to Rs.5.36 lakhs (31.03.2017 - Nil & 01.04.2016- Nil).

5 EMPLOYEE BENEFITS

Refer note 2.13 for accounting policy on Employee Benefits

A. Defined contribution plans

i. Provident Fund/Employeesâ Pension Fund

ii. Employeesâ State Insurance

B. Defined Benefit plan

Gratuity: The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The scheme is funded.

(i) Balance Sheet

The assets, liabilities and surplus/(deficit) position of the defined benefit plans at the Balance Sheet date were:

The Trustees have taken policy from Life Insurance Corporation of India (LIC) and pay premium. LIC in turn manages the assets which is within the permissible limits prescribed in the insurance regulations. The Company does not foresee any material risk from these investments.

Notes:-

(i) The actuarial valuation of plan assets and the present value of the defined benefit obligation were carried out as at 31.03.2018. The present value of the defined benefit obligation and the related current service cost and past service cost, were measured using the Projected Unit Credit Method.

(ii) Discount rate is based on the prevailing market yields of Indian Government securities as at the Balance Sheet date for the estimated term of the obligations.

(iii) The salary escalation rate is arrived after taking into consideration the inflation, seniority, promotion and other relevant factors on long term basis.

(vi) Sensitivity Analysis

The sensitivity of the overall plan obligations to changes in the key assumptions are:

The sensitivity analysis above has been determined based on reasonably possible changes of the respective assumptions occurring at the end of the year and may not be representative of the actual change. It is based on a change in the key assumption while holding all other assumptions constant. When calculating the sensitivity to the assumption, the same method used to calculate the liability recognised in the Balance Sheet has been applied. The methods and types of assumptions used in preparing the sensitivity analysis did not change compared with the previous year.

6 LEASES :

(a) Operating Lease: company as a lessee

i) License Fees- RSRTc Kota

The Company has entered into an Agreement to Develop and License Agreement with RSRTC (Kota) in respect of commercial premises for an initial license period of 30 years. The Company shall after the expiry of the license period hand over possession of the said premises to the RSRTC. The disclosure with respect to the said non-cancellable operating lease are as as follows :

ii) Lease Rent- others

The Company has taken various residential, office and warehouse premises under operating lease agreements. These are generally not non-cancellable and are renewable by mutual consent. There are no restrictions imposed by Lease Agreement. There are no subleases.

(b) operating Lease: company as a lessor

The company has leased out commercial premises under non-cancellable operating lease agreements.

The company has given spaces of building / land under operating lease arrangements taken on lease or being operated under revenue sharing arrangements. The company has common fixed assets for operating space giving on rent. Hence, separate figures for the fixed assets given on rent are not ascertainable.

The Company has entered into finance leases for leasehold land. These leases are generally for a period ranging 90 years to 99 years. No part of the land has been sub leased. Except for the initial payment, there are no material annual payments for the aforesaid leases. Refer Note 4 for carrying value.

7 RELATED PARTY DISCLOSURES :

(i) Names of related parties and nature of relationships: (as ascertained by management)

a) parties under common control & Associates:

M/s. Tidal Securities Private Ltd.

M/s. Ahlcons India Private Limited M/s. Capricon Industrials Ltd.

M/s. Ahluwalia Builders & Development Group Pvt. Ltd.

b) Wholly owned Subsidiary companies :

M/s. Dipesh Mining Pvt. Ltd.

M/s. Jiwanjyoti Traders Pvt. Ltd.

M/s. Paramount Dealcomm Pvt. Ltd.

M/s. Prem Sagar Merchants Pvt. Ltd.

M/s. Splendor Distributors Pvt. Ltd.

c) Key managerial personnel:

Mr. Bikramjit Ahluwalia Chairman & Managing Director

Mr. Shobhit Uppal Deputy Managing Director

Mr. Vinay Pal Whole time Director

Mrs. Mohinder Kaur Sahlot Independent Non-Executive Director

Mr. Arun K Gupta Independent Non-Executive Director

Mr. S.K. Chawla Independent Non-Executive Director

Dr. Sushil Chandra Independent Non-Executive Director

Mr. Satbeer Singh Chief Financial Officer

Mr. Vipin Kumar Tiwari Company Secretary

d) Relative of key managerial personnel & Relationship :

Mrs. Sudershan Walia Wife of Chairman & Managing Director

Mrs. Rohini Ahluwalia Daughter of Chairman & Managing Director

Mrs. Rachna Uppal Wife of Deputy Managing Director

Mr. Vikaas Ahluwalia Son of Chairman & Managing Director

Mrs. Pushpa Rani Sister of Chairman & Managing Director

Mrs. Mukta Ahluwalia Daughter of Chairman & Managing Director

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

Ahluwalia Construction Group (Proprietor Mr. Bikramjit Ahluwalia)

8 financial instruments, financial risks and capital risks management policies and objectives

I Financial Instruments - Accounting classification, fair values and fair value hierarchy :

The category wise details as to the carrying value and fair value of the Companyâs financial assets and financial liabilities including their levels in the fair value hierarchy are as follows:

* Other than investment in subsidiaries accounted at cost in accordance with Ind AS 27.

Methods and assumptions used to estimate the fair values are consistent with those used for the year ended 31st March, 2017.

The following methods / assumptions were used to estimate the fair values:

1. The carrying value of Cash and cash equivalents, trade receivables, trade payables, short-term borrowings, other current financial assets and financial liabilities approximate their fair value mainly due to the short-term maturities of these instruments.

2. The fair value of unquoted equity instruments is determined using Level 3 inputs which include inputs from the financial statements of the investee companies based on their respective Net Asset Values (NAV) per share.

Reconciliation of fair Value measurement of unquoted equity shares of following companies classified as FVTOCI assets :

3. Borrowings have fair values that approximate to their carrying amounts as it is based on the net present value of the anticipated future cash flows using rates currently available for debt on similar terms, credit risk and remaining maturities.

4. Security deposits received against leases are fair valued at initial recognition. Valuation technique used and key inputs thereto for these Level 2 financial liabilities are determined using Discounted Cash Flow method using prevailing market interest rates. After initial recognition, they are carried at amortised cost.

5. There has been no change in the valuation methodology for Level 3 inputs during the year. There were no transfers between Level 1 and Level 2 during the year and no transfer into and out of Level 3 fair value measurements

II Financial Risk Management Objectives and policies

The Companyâs activities expose it to a variety of financial risks namely market risk, credit risk and liquidity risk. The Companyâs primary risk management focus is to minimize potential adverse effects of market risk on its financial performance. The Companyâs risk management assessment and policies and processes are established to identify and analyze the risks faced by the Company, to set appropriate risk limits and controls, and to monitor such risks and compliance with the same.

Risk assessment and management policies and processes are reviewed regularly to reflect changes in market conditions and the Companyâs activities. The Board of Directors and the Audit Committee is responsible for overseeing the Companyâs risk assessment and management policies and processes.

The Companyâs financial risk management policy is set by the management. Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from a change in the price of a financial instrument. The value of a financial instrument may change as a result of changes in the interest rates, foreign currency exchange rates, equity prices and other market changes that affect market risk sensitive instruments. The Company manages market risk which evaluates and exercises independent control over the entire process of market risk management. The management recommends risk management objectives and policies, which are approved by Senior Management and the Audit Committee.

a) 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 Companyâs receivables from customers. Credit risk arises from cash held with banks as well as credit exposure to clients, including outstanding accounts receivable. The maximum exposure to credit risk is equal to the carrying value of the financial assets. The objective of managing counterparty credit risk is to prevent losses in financial assets. The Company assesses the credit quality of the counterparties, taking into account their financial position, past experience and other factors. The Company establishes an allowance for impairment that represents its expected credit losses in respect of trade and other receivables. The management uses a simplified approach for the purpose of computation of expected credit loss for trade receivables.

The Companyâs exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics of the customer, including the default risk of the industry and country, in which the customer operates, also has an influence on credit risk assessment. Credit risk is managed through credit approvals, establishing credit limits, continuously monitoring the credit worthiness of customers to which the Company grants credit terms in the normal course of business and through regular monitoring of conduct of accounts. The Company also holds security deposits for outstanding trade receivables which mitigate the credit risk to some extent.

An impairment analysis is performed at each reporting date on an individual basis for major customers. The history of trade receivables shows a negligible provision for bad and doubtful debts. The management believes that no further provision is necessary in respect of trade receivables based on historical trends of these customers. Further, the Companyâs exposure to customers is diversified.

At 31st March, 2018, the company had 1 Customer (Central Govt. & State Govt.) (31st March, 2017 : 1 customer, 01st April, 2016 : 1 customer) that owned the company more than Rs.28,686 lakhs (31st March, 2017 : Rs.23,748 lakhs, 01st April, 2016 : Rs.13,835 lakhs ) and accounted for approximately 42% (31st March, 2017 : 39%, 01st April, 2016 : 25% ) of all the receivables outstanding.

In respect of counter financial guarantees provided by the company to banks and financial institutions, the maximum exposure which the company is exposed to is the maximum amount which the company would have to pay if the guarantee is called upon. Based on the expectation at the end of the reporting period, the company considers that is more likely than not that such an amount will not be payable under the guarantees provided.

The movement in the loss allowance in respect of trade and other receivables during the year was as follows:

The credit risk on liquid funds such as bank balances in current and deposit accounts is limited because the counterparties are banks with high credit-ratings.

b) Liquidity Risk

Ultimate responsibility for liquidity risk management rests with the board of directors, which has established an appropriate liquidity risk management framework for the management of the Companyâs short-term, medium-term and long-term funding and liquidity management requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and committed borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities and by monitoring rolling forecasts of its liquidity requirements to ensure it has sufficient cash to meet operational needs while maintaining sufficient headroom on its undrawn committed borrowing facilities at all times so that the Company does not breach borrowing limits or covenants (where applicable) on any of its borrowing facilities.

* The table has been drawn up based on the undiscounted contractual maturities of the financial liabilities including interest that will be paid on those liabilities upto the maturity of the instruments, ignoring the call and refinancing options available with the Company, if any. The amounts included above for variable interest rate instruments for non-derivative liabilities is subject to change if changes in variable interest rates differ to those estimates of interest rates determined at the end of the reporting period.

The above excludes any financial liabilities arising out of financial guarantee contract.

Financing facilities :

The Company has access to financing facilities as described in below Note. The Company expects to meet its obligations from operating cash flows and proceeds of maturing financial assets.

c) Market Risk

Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from adverse changes in market rates and prices (such as interest rates, foreign currency exchange rates and commodity prices) or in the price of market risk-sensitive instruments as a result of such adverse changes in market rates and prices. Market risk is attributable to all market risk-sensitive financial instruments and all short term and long-term debt. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as equity price risk and commodity risk. Financial instruments affected by market risk include loans and borrowings, deposits, FVTOCI investments, trade payables, trade receivables and other financial instruments. The Company is exposed to market risk primarily related to foreign exchange rate risk, interest rate risk and the market value of its investments. Thus, the Companyâs exposure to market risk is a function of investing and borrowing activities.

i) Foreign exchange risk

ii) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Companyâs exposure to the risk of changes in market interest rates relates primarily to the Companyâs long-term debt obligations with floating interest rates.

The Companyâs investments in term deposits (i.e., margin money) with banks are for short durations, and therefore do not expose the Company to significant interest rates risk.

a. Interest rate risk exposure

The exposure of the Companyâs borrowing to interest rate changes at the end of the reporting period are as follows:

The table excludes non interest bearing/fixed rate of interest borrowings Rs.1,677.13 lakhs (31st March, 2017 : 2,794.57 lakhs, 01st April, 2016 : 2,854.57 lakhs).

b. Interest rate sensitivity :

The sensitivity analysis below has been determined based on exposure to interest rates for borrowings at the end of the reporting period and the stipulated change taking place at the beginning of the financial year and held constant throughout the reporting period in case of borrowings that have floating rates.

If the interest rates had been 50 basis points higher or lower and all the other variables were held constant, the effect on interest expense for the respective financial years and consequent effect on Companyâs profit in that financial year would have been as below:

The assumed movement in basis points for the interest rate sensitivity analysis is based on the currently observable market environment.

III Capital Risk Management Policies and Objectives

The Companyâs objective while managing capital is to safeguard its ability to continue as a going concern (so that it is enabled to provide returns and create value for its shareholders, and benefits for other stakeholders), support business stability and growth, ensure adherence to the covenants and restrictions imposed by lenders and / or relevant laws and regulations, and maintain an optimal and efficient capital structure so as to reduce the cost of capital and to maximise shareholders value. In order to maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders, issue new shares, obtain new borrowings or sell assets to reduce debt, etc.

The Company manages its capital structure and makes adjustments to it, in light of changes in economic conditions or its business requirements and the requirements of the financial covenants.

The gearing ratio at the end of the reporting period was as follows:

In order to achieve this overall objective, the Companyâs capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. Breaches in meeting the financial covenants would permit the bank to immediately call loans and borrowings. There have been no breaches in the financial covenants of any interest-bearing loans and borrowings in the current period.

IV changes in liabilities arising from financing activities

With effect from 01.04.2017, the Company adopted the amendments to Ind AS 7 - Statement of cash flows.The amendments require entities 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. To the extent necessary to satisfy this requirement, an entity discloses the following changes in liabilities arising from financing activities:

- Changes from financing cash flows

- Changes arising from obtaining or losing control of subsidiaries or other businesses

- The effect of changes in foreign exchange rates

- Changes in fair values

- Other changes

Paragraph 44C of Ind AS 7 states that liabilities arising from financing activities are liabilities for which cash flows were, or future cash flows will be, classified in the statement of cash flows as cash flows from financing activities. In addition, the disclosure requirement in paragraph 44A also applies to changes in financial assets (for example, assets that hedge liabilities arising from financing activities) if cash flows from those financial assets were, or future cash flows will be, included in cash flows from financing activities.

The Company disclosed information about its interest-bearing loans and borrowings.

The amendments suggest that the disclosure requirement may be met by providing a reconciliation between the opening and closing balances in the statement of financial position for liabilities arising from financing activities. Where an entity discloses such a reconciliation, it shall provide sufficient information to enable users of the financial statements to link items included in the reconciliation to the statement of financial position and the statement of cash flows. The Company decided to provide information in a reconciliation format. The major changes in the Companyâs liabilities arising from financing activities are due to financing cash flows and accrual of financial liabilities. The Company did not acquire any liabilities arising from financing activities during business combinations effected in the current period or comparative period.

c. The segment reporting became applicable w.e.f. FY 2016-17 on the operation of Bus Terminal & Depot and Commercial Complex at Kota. Therefore, figures as on 01st April, 2016 have not been disclosed on the first time adoption of Ind AS-108 âOperating Segmentsâ.

D. Basis of identifying operating segments, reportable segments, segment profit and definition of each reportable segment and segment composition:

(i) Basis of identifying operating segments:

Operating segments are identified as those components of the Company (a) that engage in business activities to earn revenues and incur expenses (including transactions with any of the Companyâs other components (b) whose operating results are regularly reviewed by the Companyâs Chief Executive Officer to make decisions about resource allocation and performance assessment and (c) for which discrete financial information is available.

(ii) Reportable segments:

(iii) Segment profit:

Performance of a segment is measured based on segment profit (before interest and tax), as included in the internal management reports that are reviewed by the Companyâs Chief Executive Officer.

(iv) Segment composition:

a) Revenue from contract work

b) Lease Rental from Investment Property (Bus Terminal & Depot and Commercial Complex) at Kota

c) Other comprises Inventory Property

E. Revenue from one customer (Central Govt. and State Govt. both) in Contract work segment amounting to Rs.1,09,881.79 lakhs (31st March, 2017 : Rs.95,084.73 lakhs ) and accounted for approximately 66.73% (31st March, 2017 : 66.65 %) contributed to more than 10% of the entityâs total revenue.

9 In light of Section 135 of the Companies Act, 2013, the company has incurred expenses on Corporate Social responsibility (CSR) aggregating to Rs.39.92 lakhs (previous year Rs.10.00 lakhs).

The disclosure in respect of CSR expenditure is as follows:

10 Under Amnesty Scheme 2013 of Delhi Government, the Company has claimed Input Tax Credit (ITC) of Rs.1,783.64 lakhs in Trans I filed under GST regime in respect of VAT Input credit for the period from 2009 to 2013. The Company is not entitled to VAT Input credit for the period for which amnesty scheme was availed as per the order of Commissioner VAT, New Delhi dated 17.01.2018. The Company has accordingly not recognised Rs.1,783.64 lakhs in its books.

11 Particulars of loans given, guarantee given or security provided and investment made during the year as mandated section 186 (4) of the Companies Act, 2013:

(a) Loans given: Nil

(b) Guarantee given: Nil

(d) Investments made/ (sold): Refer note no. 7 & 51 for the details of investments made/ (sold) by the Company as at the reporting dates.

Proposed dividend on equity shares is subject to approval of the shareholders at the annual general meeting and is not recognised as a liability (including DDT thereon) as at 31st March, 2018.

12 Use of estimates and judgements :

The preparation of financial statements in conformity with the recognition and measurement principles of Ind AS requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting period end. Although these estimates are based upon managementâs best knowledge of current events and actions, historical experience and other factors, including expectations of future events that are believed to be reasonable, actual results could differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

A. Significant Judgements in applying accounting policies

(i) Leasehold land :

The Company has entered into several arrangements for leases of land from government entities and other parties. Significant judgment is involved in assessing whether such arrangements are in the nature of finance or operating lease. In making such an assessment, the Company considers various factors, including, but not limited to, transfer of ownership of leased asset at end of lease term, lesseeâs option to purchase and estimated certainty of exercise of such option, proportion of lease term to the assetâs economic life, whether the present value of minimum lease payments amount to at least substantially all of the fair value of lease assets, renewal terms, purchase option, sub-lease options etc. Based on evaluation of above factors, leases are evaluated on case to case basis for the purpose of treating as in the nature of finance lease or an operating lease.

(ii) Kota project : Investment property :

The Company has developed a building (being Bus Terminal and Depot and Commercial Complex at Kota) for Rajasthan State Road Transport Corporation (RSRTC) under an âAgreement to Developâ at a cost of Rs.8930.67 Lakhs spent till 31.03.2017 on the land belonging to RSRTC under license arrangement. The expenditure (construction cost) incurred has been shown in Balance Sheet under the main head âInvestment Propertyâ and sub-head âBuildingâ. The Company has a right to Lease Commercial Complex. The period of lease of right of Commercial complex is 40 years (30 years, primary license period 10 years extended period) from the date of completion of the project. Thereafter, the Commercial Complex will be handed over to RSRTC.

Determination of applicability of Appendix A of Service Concession Arrangement (âSCAâ), under Ind AS - 11 âConstruction contractsâ) :

This Interpretation applies to public-to-private service concession arrangements if:

(a) the grantor controls or regulates what services the operator must provide with the infrastructure, to whom it must provide them, and at what price; and

(b) the grantor controlsâthrough ownership, beneficial entitlement or otherwiseâany significant residual interest in the infrastructure at the end of the term of the arrangement.

In the given case, RSRTC controls/ regulates what services the Company must provide with the infrastructure, i.e. rental of commercial complex. However it does not regulate: to whom the Company must provide them and at what price. Since the first condition is not met, the management has concluded that SCA does not apply in this case.

Determination of applicability of Ind As 40 - Investment Property:

Accordingly, the management has concluded that Ind As 40 shall apply in its case and the cost of construction shall be accounted for as investment property under Ind AS 40.

B. Key sources of estimation uncertainty

(i) Impairment of trade receivables:

(ii) Fair value measurements of financial instruments:

(iii) Valuation of investment property :

Building at Kota :

The determination of the fair value of investment property, viz. Building at Kota requires the use of estimates such as future cash flows from the assets (such as lettings, future revenue streams and the overall repair and condition of the property and property operating expenses etc.) and discount rates applicable to those assets. As at 31st March, 2018 and As at 31st March, 2017, the property is fair valued based on valuations performed by an independent valuer who holds a recognised and relevant professional qualification and has relevant valuation experience.

(iv) Estimation of net realisable value for inventory property

Inventory is stated at the lower of cost and net realisable value (NRV).

(v) Actuarial Valuation:

The determination of Companyâs liability towards defined benefit obligation viz. gratuity to employees is made through independent actuarial valuation including determination of amounts to be recognised in the Statement of Profit and Loss and in other comprehensive income. Such valuation depend upon assumptions determined after taking into account inflation, seniority, promotion and other relevant factors such as supply and demand factors in the employment market. Information about such valuation is provided in notes to the financial statements.

(vi) claims, provisions and contingent Liabilities:

The Company has ongoing litigations with various regulatory authorities and third parties. Where an outflow of funds is believed to be probable and a reliable estimate of the outcome of the dispute can be made based on managementâs assessment of specific circumstances of each dispute and relevant external advice, management provides for its best estimate of the liability. Such accruals are by nature complex and can take number of years to resolve and can involve estimation uncertainty. These estimates could change substantially over time as new facts emerge and each dispute progresses. Information about such litigations is provided in notes to the financial statements.

(vii) useful lives of property, plant and equipment, investment property and intangible assets:

(viii) Retention money

The retention money is contractually due for payment by customer on completion of the project after a specified defect liability period which is generally 6months to 1 year and to fulfill the customerâs satisfaction of conditions specified and adequate protection to meet obligations in the contract. Similarly, customer also pays advances before start of the execution of the project which reflects commitment from the customer and the same is being adjusted against running bills.

The retention money in a contract does not have any financing component as the same is for protecting/ensuring the performance commitment . Therefore, the management believes that there is no time value of money involved.

13 There are no significant subsequent events that would require adjustments or disclosures in the financial statements as on the balance sheet date.

14 These financial statements are the Companyâs first Ind AS financial statements. Accordingly the comparatives given in the financial statements have been complied after making necessary Ind AS adjustments to the respective audited financial statements under previous GAAP to give a true and fair view in accordance with Ind AS.

Mar 31, 2017

1. In the opinion of the Board, Current Assets, Loans and Advances are approximately of the value stated if realized in the ordinary course of business. The provisions for depreciation and for all known liabilities are adequate and not excess or short of the amount considered necessary.

2. The Company has initiated the process of obtaining confirmation from suppliers who have registered themselves under the Micro Small Medium Enterprises Development Act, 2006 (MSMED Act, 2006). Based on the information available with the Company, the balance due to Micro Small Enterprises as defined under the MSMED Act, 2006 is as under:

3. The Company has 100% wholly owned subsidiaries namely Dipesh Mining Pvt. Ltd., Jiwan Jyoti Traders Pvt. Ltd., Paramount Dealcomm Pvt. Ltd., Premsagar Merchants Pvt. Ltd. and Splendor Distributors Pvt. Ltd.

4. The salient features of Building under lease w.r.t Bus Terminal and Depot and Commercial Complex at Kota

i) The Company entered into an âAgreement to Developâ with Rajasthan State Road Transport Corporation (RSRTC), grantor, for Development/Construction of Bus Terminal and Depot and Commercial Complex at Kota, on 19th September, 2007. The project was completed during the year.

ii) The project cost estimated at Rs, 9,200.00 Lacs out of which Rs, 8,930.67 Lacs have been spent till 31.03.2017. The expenditure incurred has been shown in Balance Sheet under the main head âFixed Assetsâ and sub-head âBuilding Lease Holdâ. The total expenditure will be amortized over the period of initial lease period of 30 years.

iii) Right to Lease Commercial Complex: The period of lease of right of Commercial complex is 40 years (30 years 10 years extended period) from the date of completion of the project. Thereafter, the Commercial Complex will be handed over to RSRTC.

iv) a) Revenue from advertisement, outside the building shall be shared between RSRTC & the company in 50:50 ratio.

Revenue from advertisement, inside the building is not required to be shared with RSRTC

b) The revenue from commercial complex will be shared with RSRTC in the following manner:

v) Maintenance Obligations: The maintenance of Bus Terminal and Depot is the responsibility of RSRTC. There is a contractual obligation on the company to maintain the commercial complex. The actual maintenance charges will be recovered from the occupants of the commercial complex.

5. GRATUITY AND OTHER POST EMPLOYMENT BENEFIT PLANS

Defined contribution plan

A) Contribution to Recognized Provident Fund

The Company contributed Rs, 658.88 Lacs (31st March 2016 Rs, 473.83 Lacs) towards provident fund during the year ended 31st March 2017.

B) Gratuity Plan

The Company has a defined benefit gratuity plan. Gratuity is computed as 15 days salary for every completed year of service or part thereof in excess of 6 months and is payable on retirement/termination/resignation. The enterprises has funded the liability with Life Insurance Corporation (LIC). The Company makes provision of such gratuity liability in the books of accounts on the basis of actuarial valuation as per the projected unit credit method.

The following tables summarise the components of net benefit expense recognized in the statement of profit and loss and amounts recognized in the balance sheet for the Gratuity.

6. The Company has taken various residential, office and warehouse premises under operating lease agreements and lease rent of RSRTC Kota. These are generally not non-cancellable and are renewable by mutual consent. There are no restrictions imposed by Lease Agreement. There are no subleases.

7. RELATED PARTY DISCLOSURE:

i) List of Related Parties (as ascertained by the management)

1. Parties under common control & Associates:

M/s. Tidal Securities Private Ltd.

M/s. Ahlcons India Private Limited M/s. Capricon Industrials Ltd.

M/s. Ahluwalia Builders & Development Group Pvt. Ltd.

2. Wholly owned Subsidiary Companies M/s. Dipesh Mining Pvt. Ltd.

M/s. Jiwanjyoti Traders Pvt. Ltd.

M/s. Paramount Dealcomm Pvt. Ltd.

M/s. Prem Sagar Merchants Pvt. Ltd.

M/s. Splendor Distributors Pvt. Ltd.

3. Key Management Personnel:

Mr. Bikramjit Ahluwalia Chairman & Managing Director

Mr. Shobhit Uppal Dy. Managing Director

Mr. Vinay Pal Whole Time Director

Note:- The above information is given only in respect of contracts are in progress as on balance sheet date.

8. SEGMENT REPORTING :-

The company is engaged in two segments i.e. the business of providing construction related activities where risks and returns in all the cases are similar and income from lease rentals.

Further the company operates only within India having similar: (i) economic and political conditions, (ii) activities at all project locations and (iii) risk associated with the operations. As such the risks and returns at all project locations are similar.

* On the operation of Bus Terminal & Depot and Commercial Complex at Kota the segment reporting as per AS-17 become applicable during the year. The corresponding previous year figures have not been disclosed on the first time adoption in terms of AS-17.

9. The details of Specified Bank Notes (SBNâs) and other denomination notes held and transacted during the period from 8th November, 2016 to 30th December, 2016 are as under:

The company is mainly engaged in the business of construction activities. Keeping in view the multifarious jobs at different sites and practical difficulties in measuring building material, individual details with regard to inventory and consumption of raw materials are not given. And in view of diverse nature of contracts and wide variety of material consumed, the additional information has been furnished to the extent practicable.

10. I n light of section 135 of the Companies Act, the company has incurred expenses on Corporate Social Responsibility (CSR) aggregating to Rs, 10.00 Lacs (Previous year '' Nil).

11. PREVIOUS YEAR FIGURES

The company has regrouped / reclassified previous year figures to conform to this yearâs classification.

Mar 31, 2016

1 a. Trade receivables (Non-current) and work in progress includes a sum of Rs. 6883.41 Lacs (Previous Year Rs. 7,657.45 Lacs) under litigations at various forums for which no provisions has been made as the management believes that the revenue recognized is fully recoverable. As the matter of accounting policy followed by the company the claims from the customers are accounted for to the extent the same are settled/awarded in favor of the company.

b. The company had executed Common Wealth Games Village Project awarded by Emaar MGF construction Pvt. Ltd and raised R.A. bills amounting to Rs. 63,887.68 Lacs up to the March, 2011 which have been certified to the extent of Rs. 57,184.68 Lacs. The company has further raised bills and lodged claims of Rs. 52,736.56 Lacs on the client with respect to additional works on account of deviations and other aspects which is disputed by the client. The client has in turn raised a counter claim on the company for Rs. 1,17,025.56 Lacs. As per the terms of the agreement, both the parties have initiated process of arbitration and appointed arbitrators. The Honâble High Court has appointed a third Arbitrator as presiding Arbitrator. The matter is under arbitration. The management is hopeful of getting a favorable award and recovery of dues.

c. Sri Sumeru Realty Pvt. Ltd (SSRPL) awarded the work of construction of all civil & structural works including finishing at Bangalore. SSRPL did not take interest to resolve the issues and invoked the Bank Guarantees amounting to Rs. 500.45 Lacs and terminated the Contract on 10.03.2011. The Company filed petition in the District and Sessions Court, Bangalore to restrain the Bank for release of Payment against these Bank Guarantees. The Court restrained the Bank to release the payment of Bank Guarantees on the condition of deposit equivalent amount with court. The Company has also filed petition in the District Court, Bangalore on 20.3.2011 to secure its claims. As per the terms of agreement, both the parties have initiated process of arbitration and appointed arbitrators The company has lodged claims of Rs. 3,491.93 Lacs and the client has in turn raised a counter claim on the company for Rs. 4,300.00 Lacs. The arbitration proceedings have been concluded and pronouncement of award is awaited. The management is hopeful of getting a favorable award.

d. The Construction contract of Festival City, Ludhiana was awarded by Aerens Entertainment Zone Pvt. Ltd. (AEZPL) on 10.03.2006 for a contract value of Rs. 11,000/- lacs to be completed in a period of 15 months. The project was delayed due to various reasons and under suspension since June 2009. During the course of the execution of the project, the Company had entered in to an agreement to create strategic account & agreement to sell in April 2007 for contiguous office space of 28744 sq.ft. for a total sale consideration of Rs. 646.75/- lacs.

The Clientâs bankers have taken over possession of the project (Building) under SARFESI Act and the company had filed a suit with Debt Recovery Tribunal (DRT) for securitization of space allotted under strategic account. DRT passed an order dated 02/09/14 against the company. (ACIL) The company has filed an appeal before Debt Appellate Recovery Tribunal (DART) against DRTâs order, which is pending before the Debt Recovery Appellate Tribunal (DRAT).

ACIL have also initiated arbitration proceedings against AEZPL which is presently before the Ld. Arbitrator. Meanwhile the Honâble High Court had passed the order dated 18.03.2016 against Arenas Entertainment Zone Pvt Ltd for winding up of the Company in some other petition and official liquidator has been appointed to take over the assets of the Company. The Company is also contemplating to filling an application for imp leading the Official Liquidator before the Ld. Arbitrator in case of Arbitration. The management believes favorable outcome of proceedings based on legal advice and hopeful for recovery of dues.

2. In the opinion of the Board, Current Assets, Loans and Advances are approximately of the value stated if realized in the ordinary course of business. The provisions for depreciation and for all known liabilities are adequate and not excess or short of the amount considered necessary.

3. The Company has initiated the process of obtaining confirmation from suppliers who have registered themselves under the Micro Small Medium Enterprises Development Act, 2006 (MSMED Act, 2006). Based on the information available with the Company, the balance due to Micro Small Enterprises as defined under the MSMED Act, 2006 is as under:

4. Trade receivables, Trade payables and Advances recoverable balances appearing in the Balance Sheet are subject to confirmation.

5. The Company has 100% wholly owned subsidiaries namely Dipesh Mining Pvt. Ltd., Jiwan Jyoti Traders Pvt. Ltd., Paramount Dealcomm Pvt. Ltd., Premsagar Merchants Pvt. Ltd. and Splendor Distributors Pvt. Ltd.

6. The salient features of Service Concession Arrangement w.r.t Bus Terminal and Depot and Commercial Complex at Kota

i) The Company entered into an "Agreement to Developâ with Rajasthan State Road Transport Corporation (RSRTC), grantor, for Development/Construction of Bus Terminal and Depot and Commercial Complex at Kota, on 19th September, 2007. The project was to be completed within 18 months. Delay in approval of drawing by Statutory Authorities affected the progress of the project and delay in completion. The company was provided revised sanction plan from RSRTC for some modification and additional works. The modification and additional works for the second phase are in advance stage and License Agreement with RSRTC is to be executed during the quarter ended June 2016.

ii) The project cost estimated at Rs. 9,000.00 Lacs out of which Rs. 8,375.49 Lacs have been spent till 31.03.2016. The expenditure incurred has been shown in Balance Sheet under the main head "Fixed Assetsâ and sub-head "Intangible assets under developmentâ (refer note No. 12). The total expenditure will be amortized over the period of right to lease commercial complex available.

iv) a) Revenue from advertisement, outside the building shall be shared between RSRTC & the company in 50:50 ratio.

Revenue from advertisement, inside the building is not required to be shared with RSRTC

b) The revenue from commercial complex will be shared with RSRTC in the following manner:

7. GRATUITY AND OTHER POST EMPLOYMENT BENEFIT PLANS

Defined contribution plan

A) Contribution to Recognized Provident Fund

The Company contributed Rs. 473.83 Lacs (March 31, 2015 Rs. 305.21 Lacs) towards provident fund during the year ended March 31, 2016.

B) Gratuity Plan

The Company has a defined benefit gratuity plan. Gratuity is computed as 15 days salary for every completed year of service or part thereof in excess of 6 months and is payable on retirement/termination/resignation. The enterprises has funded the liability with Life Insurance Corporation (LIC). The company makes provision of such gratuity liability in the books of accounts on the basis of actuarial valuation as per the projected unit credit method.

The following tables summaries the components of net benefit expense recognized in the statement of profit and loss and amounts recognized in the balance sheet for the Gratuity.

8. SEGMENT REPORTING :-

The company is engaged in the business of providing construction related activities where risks and returns in all the cases are similar.

Therefore the operations of the company fall under single segment as defined in Accounting Standard-17.

9. Pursuant to Section 135 of the Companies Act, 2013 and rule made there under, the Board of Directors has constituted a Corporate Social Responsibility (CSR) Committee. The Committee has adopted a Corporate Social Responsibility Policy. As per Section 135(5) of the Act, the Company needs to ensure at least 2% of the average net profit of preceding three financial years is spent on CSR activities as mentioned in CSR Policy. Due to losses incurred in past, the average result of preceding three financial years (2012-13, 2013-14 and 2014-15) in loss, consequently the Company is not required to spend any amount on CSR during the current year.

10. PREVIOUS YEAR FIGURES

The company has regrouped / reclassified previous year figures to conform to this yearâs classification.

11. During the year figures have been rounded off to the nearest of Lacs and decimal thereof.

Mar 31, 2015

1a. CONTINGENT LIABILITIES NOT PROVIDED FOR

S. Particulars As at 31.03.2015 As at 31.03.2014 No. (Rs.) (Rs.)

a) Counter guarantees given to bankers against Bank guarantees 439,95,33,286 384,56,90,275

b) Indemnity Bonds/Performance Bonds/Surety Bonds / Corporate guarantees 94,35,80,055 153,88,80,490 given to clients

c) Value Added Tax liability 252,94,30,594 1,98,16,085

d) Demand of stamp duty on Real Estate Project 57,41,980 57,41,980

e) Claims against the company not Acknowledged as debts 53,96,10,957 50,50,66,711

f) Excise duty demand for F.Y. 1998-99 & 2000-2001 14,26,506 14,26,506

g) Service tax demand on alleged

(i) wrong availment of abatement on account of free supply of material by 197,80,90,751 209,23,99,269 the Client

(ii) Composition scheme 47,84,15,456 47,84,15,456

(iii) Exempted projects 88,74,39,462 119,38,02,337

(iv) Others 21,82,83,684 47,06,52,422

h) Provident fund demand 54,57,34,315 54,57,34,315

Based on legal opinion taken by the Company & discussions with the advocates & consultants, the Company believes that there is fair chance of decisions in its favour in respect of all items listed in (c) to (h) above and hence no provision is considered necessary against the same. The replies/appeals have been filed before appropriate authorities/Courts. Disposal is awaited.

b. Capital commitments :- Capital contracts remaining to be executed (net of payments) and not provided for Rs. 13,70,34,118/-(Previous Year Rs. 6,24,67,756/-)

2a. Trade receivables (Non-current) and work in progress includes a sum of Rs. 76,57,45,611 (P.Y. Rs. 76,57,45,611) under litigations at various forums for which no provisions has been made as the management believes that the revenue recognized is fully recoverable. As the matter of accounting policy followed by the company the claims from the customers are accounted for to the extent the same are settled/awarded in favour of the company.

b. The company had executed Commonwealth Games Village Project and raised R.A. bills amounting to Rs. 638,87,67,898/- up to the March, 2011 which have been certified to the extent of Rs. 571,84,67,898/-. The company has further raised bills and lodged claims of Rs. 527,36,55,996 on the client with respect to additional works on account of deviations and other aspects which is disputed by the client. The client has in turn raised a counterclaim on the company for Rs.1170,25,55,818/-. As per the terms of the agreement, both the parties have initiated process of arbitration and appointed arbitrators. The Hon'ble High Court has appointed a third Arbitrator as presiding Arbitrator. The matter is under arbitration. The management is hopeful of getting a favorable award and recovery of dues.

c. On 19th Jan, 2011 Sri Sumeru Realty Pvt. Ltd (SSRPL) Bangalore, a client invoked the Bank Guarantees amounting to Rs. 5,00,44,760/- and terminated the Contract on 10.03.2011. The Company filed petition in the District and Sessions Court, Bangalore to restrain the Bank for release of Payment against these Bank Guarantees. The Court restrained the Bank to release the payment of Bank Guarantees on the condition of deposit equivalent amount with court. The Company has also filed petition in the District Court, Bangalore on 20.3.2011 to secure its claims. As per the terms of the agreement, both the parties have initiated process of arbitration and appointed arbitrators. The Hon'ble High Court has appointed a third Arbitrator as presiding Arbitrator. The company has lodged claims of Rs. 34,91,93,064/- and the client has in turn raised a counter claim on the company for Rs. 43,00,00,000. The matter is under arbitration. The management is hopeful of getting a favorable award.

d. The Construction contract of Festival City, Ludhia na was awarded on 10.03.2006 for a contract value of Rs. 110,00,00,000/- to be completed in a period of 15 months. The project was delayed due to various reasons and under suspension since June 2009. During the course of the execution of the project, the Company had entered in to an agreement to create strategic account & agreement to sell in April 2007 for contiguous office space of 28744 sq. ft for a total sale consideration of Rs. 6,46,74,743/-.

The Client's bankers have taken over possession of the project (Building) under SARFESI Act and the company had filed a suit with Debt Recovery Tribunal (DRT) for securitization of space allotted under strategic account. DRT passed an order dated 02/09/14 against the company. The company has filed an appeal before Debt Appellate Recovery Tribunal (DART) against DRT's decision on dated 27/10/14.

As per the terms of agreement both parties have initiated process of arbitration. The company has lodged claims of Rs.62,39,52,000. The matter is pending under arbitration. The recovery of the Company's dues is dependent upon decision of the judicial process. The management believes a favorable outcome of proceedings and hopeful for recovery of the dues.

3. In the opinion of the Board, Current Assets, Loans and Advances are approximately of the value stated if realised in the ordinary course of business. The provisions for depreciation and for all known liabilities are adequate and not excess or short of the amount considered necessary.

4. The Company has initiated the process of obtaining confirmation from suppliers who have registered themselves under the Micro Small Medium Enterprises Development Act, 2006 (MSMED Act, 2006). Based on the information available with the Company, the balance due to Micro Small Enterprises as defined under the MSMED Act, 2006 is as under:

5. Trade receivables. Trade payables and Advances recoverable balances appearing in the Balance Sheet are subject to confirmation.

6. The Company has 100% wholly owned subsidiaries namely M/s. Ahlcon Ready Mix Concrete Pvt. Ltd. (ceased w.e.f. 31.03.2014), Dipesh Mining Pvt. Ltd., Jiwan Jyoti Traders Pvt. Ltd., Paramount Dealcomm Pvt. Ltd., Premsagar Merchants Pvt. Ltd. and Splendor Distributors Pvt. Ltd.

7. The salient features of Service Concession Arrangement w.r.t Bus Terminal & Depot and Commercial Complex at Kota

i) The Company entered into an "Agreement to Develop" with Rajasthan State Road Transport Corporation (RSRTC), grantor, for Development/Construction of Bus Terminal and Depot and Commercial Complex at Kota, on 19th September, 2007. The project was to be completed within 18 months. Delay in approval of drawing by Statutory Authorities affected the progress of the project and delay in completion. The company had been provided revised sanction plan from RSRTC for some modification and additional works. The modification and additional works for the second phase are in advance stage and likely to be completed in June 2015.

ii) The project cost has been estimated at Rs. 90,00,00,000/- out of which Rs. 78,36,48,513/- have been spent till 31.03.2015. The expenditure incurred has been shown in Balance Sheet under the main head "Fixed Assets" and sub-head "Intangible assets under development" (refer note No. 12). The total expenditure will be amortized over the periods, once the asset will be available for use.

iii) Right to Lease Commercial Complex: The period of lease of right of Commercial complex is 40 years (30 years 10 years extended period) from the date of completion of the project. Thereafter, the Commercial Complex will be handed over to RSRTC.

iv) a) Revenue from advertisement, outside the building shall be shared between RSRTC & the company in 50:50 ratio. Revenue from advertisement, inside the building is not required to be shared with RSRTC

8. GRATUITY AND OTHER POST EMPLOYMENT BENEFIT PLANS Defined contribution plan

A) Contribution to Recognised Provident Fund

The Company contributed Rs. 3,05,21,389/-(March 31, 2014 Rs.2,38,02,815/-) towards provident fund during the year ended March 31, 2015.

B) Gratuity Plan

The Company has a defined benefit gratuity plan. Gratuity is computed as 15 days salary for every completed year of service or part thereof in excess of 6 months and is payable on retirement/termination/resignation. The enterprises has funded the liability with Life Insurance Corporation (LIC). Company makes provision of such gratuity liability in the books of accounts on the basis of actuarial valuation as per the projected unit credit method.

The following tables summarise the components of net benefit expense recognized in the statement of profit and loss and amounts recognized in the balance sheet for the Gratuity.

9. SEGMENT REPORTING :-

The company is engaged in the business of providing construction related activities where risks and returns in all the cases are similar.

Further the company operates only within India having similar: (i) economic and political conditions, (ii) activities at all project locations and (iii) risk associated with the operations.As such the risks and returns at all project locations are similar.

Therefore the operations of the company fall under single segment as defined in Accounting Standard-17.

10. Pursuant to Section 135 of the Companies Act, 2013 and rule made thereunder, the Board of Directors has constituted a Corporate Social Responsibility (CSR) Committee. The Committee has adopted a Corporate Social Responsibility Policy. As per Section 135(5) of the Act, the Company needs to ensure at least 2% of the average net profit of preceding three financial years to be spent on CSR activities as mentioned in CSR Policy. However, due to losses incurred in past, the average result of preceding three financial years (2011-12, 2012-13 and 2013-14) is in loss, consequently the Company is not required to spend any amount on CSR for the current year.

11. PREVIOUS YEAR FIGURES

The company has reclassified previous year figures to conform to this year's classification.

Mar 31, 2014

1. Nature of Operations

Ahluwalia Contracts (India) Limited (hereinafter referred to as "the Company") is a Public Ltd. Company in India and incorporated under the provisions of the Companies Act, 1956. The Company is primarily engaged in the business of construction activities. The company has also diversifed into Built Operate Transfer (BOT) operations by building and operating commercial complex under concession service arrangements.

2a. Contingent Liabilities not Provided for

S.no. ParticularS As at 31.03.2014 As at 31.03.2013 (Rs.) (Rs.)

a) Counter guarantees given to bankers against Bank guarantees 384,56,90,275 439,66,25,523

b) Indemnity Bonds/Performance Bonds/ Surety Bonds / Corporate 153,88,80,490 121,88,38,492 guarantees given to clients

c) Value Added Tax liability 1,98,16,085 35,39,02,592

d) Demand of stamp duty on Real Estate Project 57,41,980 57,41,980

e) Claims against the company not Acknowledged as debts 50,50,66,711 49,96,25,898

f) Excise duty demand for F.Y. 1998-99 & 2000-2001 14,26,506 39,37,696

g) Service tax demand on alleged

(i) wrong availment of abatement on account of free supply of material 209,23,99,269 203,08,28,774 by the Client*

(ii) Composition scheme 119,38,02,337 87,37,30,527

(iii) Exempted projects 47,84,15,456 46,67,94,442

(iv) Others 47,06,52,422 46,59,86,294

h) Provident fund demand 54,57,34,315 54,57,34,315

Based on legal opinion taken by the Company & discussions with the advocates & consultants, the Company believes that there is fair chance of decisions in its favour in respect of all items listed in (c) to (h) above and hence no provision is considered necessary against the same.The replies/appeals have been fled before appropriate authorities/Courts. Disposal is awaited.

*In one case, the matter has been decided in favour of the company by CESTAT, New Delhi. Further,the larger bench of the Tribunal has decided the matter of non inclusion of value of free of cost material supplied by the client in favour of the appellants in similar cases. In view of the above, no liability is likely to arise.

b. Capital commitments :- Capital contracts remaining to be executed (net of payments) and not provided for Rs. 6,24,67,756/- (Previous Year Rs. 3,31,036,132/-)

32a. The company had executed Common Wealth Games Village Project and raised R.A. bills amounting to Rs. 638,87,67,898/- up to the March, 2011 which have been certified to the extent of Rs. 571,84,67,898/-. The company has further raised bills and lodged claims of Rs. 418,02,86,608/- on the client with respect to additional works on account of deviations and other aspects which is disputed by the client. The client has in turn raised a counter claim on the company for Rs. 250,92,91,002/-. As per the terms of the agreement, both the parties have initiated process of arbitration and appointed arbitrators. The Hon''ble High Court has appointed a third Arbitrator as presiding Arbitrator. The matter is under arbitration. The management is hopeful of getting a favorable award and recovery of dues.

b. On 19th Jan, 2011 Sri Sumeru Realty Pvt. Ltd (SSRPL) Bangalore, a client invoked the Bank Guarantees amounting to Rs. 500,44,760/- and terminated the Contract on 10.03.2011. The Company fled petition in the District and Sessions Court, Bangalore to restrain the Bank for release of Payment against these Bank Guarantees. The Court restrained the Bank to release the payment of Bank Guarantees. The Company has also fled petition in the District Court, Bangalore on 20.3.2011 to secure its claims of Rs. 22,74,79,303/-. As per the terms of the agreement, both the parties have initiated process of arbitration and appointed arbitrators. The Hon''ble High Court has appointed a third Arbitrator as presiding Arbitrator. The matter is under arbitration. The management is hopeful of getting a favorable award.

c. The Construction contract of Festival City, Ludhiana was awarded on 10.03.2006 for a contract value of Rs. 110,00,00,000/- to be completed in a period of 15 months. The project was delayed due to various reasons and under suspension since June 2009. During the course of the execution of the project, the Company had entered in to an agreement to create strategic account & agreement to sell in April 2007 for contiguous office space of 28744 sq. ft for a total sale consideration of Rs. 6,46,74,743/-.

The Client''s bankers have taken over possession of the project (Building) under SARFESI Act and have fled a suit for securitization of space allotted under strategic account.

The recovery of the Company''s dues are dependent upon decision of the judicial process. The management believes a favorable outcome of proceedings and hopeful of recovery of dues.

3. In the opinion of the Board, Current Assets, Loans and Advances are approximately of the value stated if realised in the ordinary course of business. The provisions for depreciation and for all known liabilities are adequate and not excess or short of the amount considered necessary.

4. The Company has initiated the process of obtaining confirmation from suppliers who have registered themselves under the Micro Small Medium Enterprises Development Act, 2006 (MSMED Act, 2006). Based on the information available with the Company, the balance due to Micro Small Enterprises as defined under the MSMED Act, 2006 is as under:

5. Trade receivables, Trade payables and Advances recoverable balances appearing in the Balance Sheet are subject to confirmation.

6. The Company has 100% wholly owned subsidiaries namely M/s. Ahlcon Ready Mix Concrete Pvt. Ltd. (ceased w.e.f. 31.03.2014), Dipesh Mining Pvt. Ltd., Jiwan Jyoti Traders Pvt. Ltd., Paramount Dealcomm Pvt. Ltd., Premsagar Merchants Pvt. Ltd. and Splendor Distributors Pvt. Ltd.

7. The salient features of Service Concession Arrangement w.r.t Bus Terminal and Depot and Commercial Complex at Kota

i) The Company entered into an "Agreement to Develop" with Rajasthan State Road Transport Corporation (RSRTC), grantor, for Development/Construction of Bus Terminal and Depot and Commercial Complex at Kota, on 19th September, 2007. The project was to be completed within 18 months. Delay in approval of drawing by Statutory Authorities affected the progress of the project and delay in completion. During the year company has received revised sanction plan from client for some modification and additional works. The modification and additional works for the second phase are in advance stage and Bus stand depot is likely to be opened in F.Y. 2014-15.

ii) The project cost has been estimated at Rs. 72,00,00,000/- out of which Rs. 65,75,32,244/- have been spent till 31.03.2014. The expenditure incurred has been shown in Balance Sheet under the main head "Fixed Assets" and sub-head "Intangible assets under development" (refer note No. 12). The total expenditure will be amortized over the period, the asset is available for use.

iii) Right to Lease Commercial Complex: The period of lease of right of Commercial complex is 40 years (30 years 10 years extended period) from the date of completion of the project. Thereafter, the Commercial Complex will be handed over to RSRTC.

iv) a) Revenue from advertisement, outside the building shall be shared 50% to RSRTC& 50% to the Licensee. No Revenue sharing from advertisement etc. inside the building.

b) The revenue from commercial complex will be shared with RSRTC in the following manner:

S. details of area/space to license fee upto 36 license fee after 36 no. be used for shops/stalls months months upto the license or other occupants at bus period of 30 years Stand Kota

1) For the space area 15 Sqm Rs. 10/- per Sqm per month Rs. 50/- per Sqm per month or more area with 10% cumulative increase every year.

2) For space less than 15 Sqm Rs. 150/- per month in each Rs. 750/- per month in each case. case with 10% cumulative increase every year.

S. details of area/space to license fee after 30 years no.be used for shops/stalls for a further period of 10 or other occupants at bus years Stand Kota

1) For the space area 15 Sqm License fee effective as on or more area Completion of 30 years and others terms & conditions will remain unchanged.

2) For space less than 15 Sqm License fee effective as on completion of 30 years and others terms & conditions will remain unchanged.

v) Maintenance Obligations: The maintenance of Bus Terminal and Depot is the responsibility of RSRTC. There is a contractual obligation on the company to maintain the commercial complex. The actual maintenance charges will be recovered from the occupants of the commercial complex.

8. Gratuity and otheR poSt employment beneFit plans

Defined Contribution Plan

A) Contribution to Recognised Provident Fund

The Company contributed Rs. 2,38,02,815/- (March 31, 2013 Rs. 3,23,07,375/-) towards provident fund during the year ended March 31, 2014.

b) gratuity plan

The Company has a defined benefit gratuity plan. Gratuity is computed as 15 days salary for every completed year of service or part thereof in excess of 6 months and is payable on retirement/termination/resignation. The enterprises has funded the liability with Life Insurance Corporation (LIC). Company makes provision of such gratuity liability in the books of accounts on the basis of actuarial valuation as per the projected unit credit method.

The following tables summarise the components of net benefit expense recognized in the statement of Profit and loss and amounts recognized in the balance sheet for the Gratuity.

The estimates of future salary increases, considered in Actuarial Valuation, take account of infation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

The overall expected rate of return on Assets is determined based on the market prices prevailing on that date, applicable to the period over which the obligations is to be settled. The Company expects to contribute Rs. 90,27,840 to Gratuity Fund in the next year. (March 31, 2013: Rs. 1,08,31,569 )

c) leave encashment :-

The employees have availed all the leaves benefits and there has been no credits of leave as on balance sheet date, consequently, no provision for the leave encashment has been made.

9. a) The Company has taken various residential, ofce and warehouse premises under operating lease agreements. These are generally not non-cancellable and are renewable by mutual consent. There are no restrictions imposed by Lease Agreement. There are no subleases.

10. Related Party Disclosure:

i) List of Related Parties (as ascertained by the management)

1. Parties under common control & Associates:

M/s. Ahlcon Parenterals (India) Limited (ceased w.e.f. 28.09.2012)

M/s. Tidal Securities Private Ltd.

M/s. Ahlcons India Private Limited

M/s. Capricon Industrials Ltd.

M/s. Ahluwalia Builders & Development Group Pvt. Ltd.

2. Wholly owned Subsidiary Companies

M/s. Ahlcon Ready Mix Concrete Pvt. Ltd. (ceased w.e.f. 31.03.2014)

M/s. Dipesh Mining Pvt. Ltd.

M/s. Jiwanjyoti Traders Pvt. Ltd.

M/s. Paramount Dealcomm Pvt. Ltd.

M/s. Prem Sagar Merchants Pvt. Ltd.

M/s. Splendor Distributors Pvt. Ltd.

3. Key Management Personnel:

Mr. Bikramjit Ahluwalia Chairman & Managing Director

Mr. Shobhit Uppal Dy. Managing Director

Mr. Vikaas Ahluwalia Whole Time Director (Resigned w.e.f. 14.02.2014)

Mrs. Sudershan Walia Whole Time Director (Resigned w.e.f. 30.05.2012)

Mr. Vinay Pal Whole Time Director

4. Relative of Key Management Personnel & Relationship:

Mrs. Sudershan Walia Wife of Chairman & Managing Director

Mrs. Rohini Ahluwalia Daughter of Chairman & Managing Director

Mrs. Rachna Uppal Daughter of Chairman & Managing Director

5. Enterprises over which key management personnel are able to exercise significant infuence. Karam Chand Ahluwalia Hospital & Medical Research Society

Ahluwalia Construction Group (Proprietor Mr. Bikramjit Ahluwalia) Shanti Devi Progressive Education Society

- Previous year figures are given in brackets.

11. Segment Reporting :-

The company is engaged in the business of providing construction related activities where risks and returns in all the cases are similar.

Further the company operates only within India having similar: (i) economic and political conditions, (ii) activities at all project locations and (iii) risk associated with the operations. As such the risks and returns at all project locations are similar.

Therefore the operations of the company fall under single segment as defined in Accounting Standard-17.

12. Change in Accounting Estimate

During the year the company has revised the estimated useful life of the Plant & Machinery (shuttering material) from one year to four year based on technical estimates made by the management. Accordingly depreciation for the year ended 31.03.2014 is lower by Rs. 1,91,23,612/- Had the company continued to use the earlier basis of providing depreciation, the charge to the statement of Profit & Loss for the current year would have been higher by Rs. 1,91,23,612/- and net block of fixed assets would correspondingly have been lower by Rs. 1,91,23,612/-.

13. Previous year Figures

The company has reclassified previous year figures to conform to this year''s classification.

Mar 31, 2013

1. NATURE OF OPERATION

Ahluwalia Contracts (India) Limited (hereinafter referred to as "the Company") is a Public Ltd. Company in India and incorporated under the provisions of the Companies Act, 1956. The Company is primarily engaged in the business of construction activities.

2 a. CONTINGENT LIABILITIES NOT PROVIDED FOR

S. No. Particulars As at 31.03.2013 As at 31.03.2012 (Rs.) (Rs.)

a) Counter guarantees given to ankers against Bank guarantees 439,66,25,523 498,71,41,271

b) Indemnity Bonds/Performance Bonds/ Surety Bonds / Corporate guarantees given to clients 121,88,38,492 113,29,94,715

c) Value Added Tax liability 35,39,02,592 151,21,36,263

d) Demand of stamp duty on Real Estate Project 57,41,980 57,41,980

e) Claims against the company not Acknowledged as debts 49,96,25,898 49,54,04,581

f) Excise duty demand for F.Y. 1998-99 & 2000-2001 39,37,696 46,37,000

g) Service tax demand on alleged wrong availment of abatement on account of free supply of material by the Client 383,73,40,037 315,76,01,821

h) Provident fund demand 54,57,34,315

Based on legal opinion taken by the Company, discussions with the advocates etc, the Company believes that there is fair chance of decisions in its favour in respect of all items listed in (c) to (h) above and hence no provision is considered necessary against the same.

The reply/appeal have been filed before appropriate authority/Court. Disposal is awaited.

b. Capital commitments :- Capital contracts remaining to be executed (net of payments) and not provided for Rs. 33,10,36,132/- (Previous Year Rs. 43,82,81,393/-)

3. a. The company had executed Common Wealth Games Village Project and raised R.A. bills amounting to Rs. 638,87,67,898/- up to the March, 2011 which have been certified to the extent of Rs. 571,84,67,898/-. The company has further raised bills and lodged claims of Rs. 418,02,86,608/- on the client with respect to additional works on account of deviations and other aspects which is disputed by the client. The client has in turn raised a counter claim on the company for Rs. 250,92,91,002/-. As per the terms of the agreement, both the parties have initiated process of arbitration and appointed arbitrators. The Hon''ble High Court has appointed a third Arbitrator as presiding Arbitrator. The matter is under arbitration. The management is hopeful of getting a favorable award.

b. On 19th Jan, 2011 Sri Sumeru Realty Pvt. Ltd (SSRPL) Bangalore, a client invoked the Bank Guarantees amounting to Rs 500,44,760/- and terminated the Contract on 10.03.2011. The Company filed petition in the District and Sessions Court, Bangalore to restrain the Bank for release of Payment against these Bank Guarantees. The Court restrained the Bank to release the payment of Bank Guarantees. The Company has also filed petition in the District Court, Bangalore on 20.3.2011 to secure its claims of Rs. 22,74,79,303/-. As per the terms of the agreement, both the parties have initiated process of arbitration and appointed arbitrators. The Hon''ble High Court has appointed a third Arbitrator as presiding Arbitrator. The matter is under arbitration. The management is hopeful of getting a favorable award.

c. The Construction contract of Festival City, Ludhiana was awarded on 10.03.2006 for a contract value of Rs. 110,00,00,000/

- to be completed in a period of 15 months. The project was delayed due to various reasons and under suspension since June 2009. During the course of the execution of the project, the Company had entered in to an agreement to create strategic account & agreement to sell in April 2007 for contiguous office space of 28744 sq. ft for a total sale consideration of Rs. 6,46,74,743/-.

The Client''s bankers have taken over possession of the project (Building) under SARFESI Act and have filed a suit for securitization of space allotted under strategic account.

The recovery of the Company''s dues are dependent upon decision of the judicial process. The management believes a favorable outcome of proceedings and confident of recovery of dues.

4. In the opinion of the Board, Current Assets, Loans and Advances are approximately of the value stated if realised in the ordinary course of business. The provisions for depreciation and for all known liabilities are adequate and not excess or short of the amount considered necessary.

5. The Company has initiated the process of obtaining confirmation from suppliers who have registered themselves under the Micro Small Medium Enterprises Development Act, 2006 (MSMED Act, 2006). Based on the information available with the Company, the balance due to Micro Small Enterprises as defined under the MSMED Act, 2006 is as under:

6. The Company has 100% wholly owned subsidiaries namely M/s. Ahlcon Ready Mix Concrete Pvt. Ltd., Dipesh Mining Pvt. Ltd., Jiwan Jyoti Traders Pvt. Ltd., Paramount Dealcomm Pvt. Ltd., Premsagar Merchants Pvt. Ltd. and Splendor Distributors Pvt. Ltd.

7. Trade receivables, Trade payables and Advances recoverable balances appearing in the Balance Sheet are subject to confirmation.

8. Loans & Advances in the nature of Loans given to Subsidiary Companies (as required by clause 32 of the listing agreement):

9. Bus Terminal, Depot and Commercial Complex at Kota

i) The Company entered into an "Agreement to Develop" with Rajasthan State Road Transport Corporation (RSRTC), grantor, for Development/Construction of Bus Terminal and Depot and Commercial Complex at Kota, on 19th September, 2007. The project was to be completed within 18 months. Delay in approval of drawing by Statutory Authorities affected the progress of the project and delay in completion. During the year company has received revised sanction plan from client for some modification and additional works. The modification and additional works for the second phase are in advance stage and Bus stand depot is likely to be opened in F.Y. 2013-14.

ii) The project cost has been estimated at Rs. 72,00,00,000/- out of which Rs. 40,21,47,810/- have been spent till 31.03.2013. The expenditure incurred has been shown in Balance Sheet under the main head "Fixed Assets" and sub-head "Intangible Assets Under Development". The total expenditure will be amortized during the useful period taking into account the revenue receivable for remaining useful period.

iii) Right to Lease Commercial Complex: The period of lease of right of Commercial complex is 40 years (30 years 10 years extended period) from the date of completion of the project. Thereafter, the Commercial Complex will be handed over to RSRTC.

iv) a) Revenue from advertisement, outside the building shall be shared 50% to RSRTC& 50% to the Licensee. No Revenue sharing from advertisement etc. inside the building.

b) The revenue from commercial complex will be shared with RSRTC in the following manner:

v) Maintenance Obligations: The maintenance of Bus Terminal and Depot is the responsibility of RSRTC. It will be Contractual obligations to maintain the commercial complex. The actual maintenance charges will be recovered from the occupants of the commercial complex.

10. GRATUITY AND OTHER POST EMPLOYMENT BENEFIT PLANS

Defined contribution plan

A) Contribution to Recognised Provident Fund

The Company contributed Rs 3,23,07,375 (March 31, 2012 Rs.4,41,48,116) towards provident fund during the year ended March 31, 2013.

B) Gratuity Plan

The Company has a defined benefit gratuity plan. Gratuity is computed as 15 days salary for every completed year of service or part thereof in excess of 6 months and is payable on retirement/termination/resignation. The enterprises has funded the liability with Life Insurance Corporation (LIC). Company makes provision of such gratuity liability in the books of accounts on the basis of actuarial valuation as per the projected unit credit method.

The following tables summarise the components of net benefit expense recognized in the statement of profit and loss and amounts recognized in the balance sheet for the Gratuity.

11. RELATED PARTY DISCLOSURE:

i) List of Related Parties (as ascertained by the management)

1. Parties under common control & Associates:

M/s Ahlcon Parenterals (India) Limited (ceased w.e.f. 28.09.2012)

M/s Tidal Securities Private Ltd.

M/s Ahlcons India Private Limited

M/s. Capricon Industrials Ltd.

M/s. Ahluwalia Builders & Development Group Pvt. Ltd.

2. Wholly owned Subsidiary Companies

M/s. Ahlcon Ready Mix Concrete Pvt. Ltd. M/s. Dipesh Mining Pvt. Ltd. M/s. Jiwanjyoti Traders Pvt. Ltd. M/s. Paramount Dealcomm Pvt. Ltd. M/s. Prem Sagar Merchants Pvt. Ltd. M/s. Splendor Distributors Pvt. Ltd.

3. Key Management Personnels:

Mr. Bikramjit Ahluwalia Chairman & Managing Director

Mr. Shobhit Uppal Dy. Managing Director

Mr. Vikaas Ahluwalia Whole Time Director

Mrs. Sudershan Walia Whole Time Director (Resigned w.e.f. 30-05-2012)

Mr. Vinay Pal Whole Time Director

4. Relative of Key Management Personnels & Relationship:

Mrs. Rohini Ahluwalia Daughter of Chairman & Managing Director

Mrs. Rachna Uppal Daughter of Chairman & Managing Director

Mrs. Mukta Ahluwalia Daughter of Chairman & Managing Director

Mrs. Pushpa Rani Sister of Chairman & Managing Director

Mrs. Ram Piari Sister of Chairman & Managing Director

Mrs. Raman Pal Mother of whole time Director

5. Enterprises over which key managerial personnel is able to exercise significant influence.

Karam Chand Ahluwalia Hospital & Medical Research Society Ahluwalia Construction Group (Proprietor Mr. Bikramjit Ahluwalia)

12. Exceptional items comprise of (a) profit on sale of land for Rs. 25,69,40,356/- ( P.Y. Nil ) to Mr. Bikramjit Ahluwalia Chairman & Managing Director (b) provision for doubtful loans and advances of subsidiary company Ahlcon Ready Mix Concrete Pvt. Ltd. Rs. 14,88,83,500/- ( P.Y. Nil ) and (c) provision for diminution in value of long term investment of subsidiary company Ahlcon Ready Mix Concrete Pvt. Ltd. Rs. 10,00,00,000/- ( P.Y. Nil ).

13. SEGMENT REPORTING :-

The company is engaged in the business of providing construction related activities where risks and returns in all the cases are similar.

Further the company operates only within India having similar

1. Economic and political conditions.

2. Activities at all project locations.

3. Risk associated with the operations at locations.

There is no exchange control regulations and underlying currency risk.

As such the risks and returns at all project locations are similar.

Therefore the operations of the company fall under single segment as defined in Accounting Standard-17.

14. PREVIOUS YEAR FIGURES

The company has reclassified previous year figures to conform to this year''s classification.

15. The accompanying notes are an integral part of the financial statements.

Mar 31, 2012

1.a. CONTINGENT LIABILITIES NOT PROVIDED FOR

S. No. Particulars As at 31.03.2012 As at 31.03.2011 (Rs.) (Rs.)

a) Counter guarantees given to bankers against Bank 498,71,41,271 473,24,73,185 guarantees

b) Indemnity Bonds/Performance Bonds/ Surety 113,29,94,715 126,43,95,704 Bonds / Corporate guarantees given to clients

c) Value Added Tax liability 151,21,36,263 150,70,38,998

d) Demand of stamp duty on Real Estate Project 57,41,980 57,41,980

Claims against the company not

e) Acknowledged as debts 49,54,04,581 29,33,60,739

f) Excise duty demand for FY. 1998-99 & 2000-2001 46,37,000 46,37,000

g) Service tax demand on alleged wrong availment of 315,76,01,821 196,11,49,906 abatement on account of free supply of material by the Client

h) Income tax demand - 5,02,111

Based on legal opinion taken by the Company, discussions with the advocates etc, the Company believes that there is fair chance of decisions in its favour in respect of all items listed in (c) to (g) above and hence no provision is considered necessary against the same. The reply/appeal have been fled before appropriate authority/Court. Disposal is awaited.

2.b. Capital commitments :- Capital contracts remaining to be executed (net of payments) and not provided for Rs. 43,82,81,393/-(Previous Year Rs. 58,39,37,834/-)

3. a. The company had executed Common Wealth Games Village Project and raised R.A. bills amounting to Rs. 638,87,67,898/- up to the March, 2011 which have been certified to the extent of Rs. 571,84,67,898/-. The company has further raised bills and lodged the claims of Rs. 418,02,86,608/- on the client with respect to additional works on account of deviations and other aspects which is disputed by the client. The client has in turn raised a counter claim on the company for Rs.250,92,91,002/-.

As per the terms of the agreement , both the parties have initiated process of arbitration and accordingly appointed arbitrators.

The company fled an application for the appointment of presiding arbitrator in High Court of Delhi which is pending before the Court. The management believes a favourable outcome of negotiations/ judicial proceedings and confirm recovery of dues.

b. On 19th Jan, 2011 Sri Sumeru Realty Pvt. Ltd (SSRPL) Bangalore, a client invoked the Bank Guarantees amounting to Rs 500,44,760/- and terminated the Contract on 10.03.2011. The Company fled petition in the District and Sessions Court, Bangalore to restrain the Bank for release of Payment against these Bank Guarantees. The Court restrained the Bank to release the payment of Bank Guarantees. The Company has also fled petition in the District Court, Bangalore on 20.3.2011 to secure its claims of Rs. 22,74,79,303/-

The company appointed the arbitrator but Sumeru did not. The company fled an application for appointment of arbitrator in Bangalore High Court on behalf of Sumeru. Both the arbitrators have appointed presiding arbitrator. The matter is pending before the arbitrators. The management believes a favourable outcome of judicial proceedings / negotiations and confirm recovery of dues.

c. The Construction of Festival City, Ludhiana was awarded on 10.03.2006 for a contract value of Rs 11,00,00,000/- to be completed in a period of 15 months. The project was delayed due to various reasons and under suspension since June 2009. During the course of the execution of the project, the Company had entered in to an agreement to create strategic account & agreement to sell in April 2007 for contiguous office space of 28744 sq ft for a total sale consideration of Rs 6,46,74,743/-.

The Client's bankers have taken over possession of the project (Building) under SARFESI Act and have fled a suit for securitization of space allotted under strategic account.

The recovery of the Company's dues are dependent upon decision of the judicial process. However, the management believes a favorable outcome of proceedings and confirm recovery of dues.

4. In the opinion of the Board, Current Assets, Loans and Advances are approximately of the value stated if realised in the ordinary course of business. The provisions for depreciation and for all known liabilities are adequate and not excess or short of the amount considered necessary.

5. The Company has initiated the process of obtaining confirmation from suppliers who have registered themselves under the Micro Small Medium Enterprises Development Act, 2006 (MSMED Act, 2006). Based on the information available with the Company, the balance due to Micro & Small Enterprises as defined under the MSMED Act, 2006 is as under:

6. The Company has 100% wholly owned subsidiaries namely M/s. Ahlcon Ready Mix Concrete Pvt. Ltd., Dipesh Mining Pvt. Ltd., Jiwan Jyoti Traders Pvt. Ltd., Paramount Dealcomm Pvt. Ltd., Premsagar Merchants Pvt. Ltd. and Splendor Distributors Pvt. Ltd.

7. (a) Sundry Debtors, Advances Recoverable and Sundry Creditors balances appearing in the Balance Sheet are subject to confirmation.

(b) Advance payments received towards contracts are secured by Bank Guarantees and/or indemnity bonds issued by the company.

8. Loans & Advances in the nature of Loans given to Subsidiary Companies (as required by clause 32 of the listing agreement) :-

9. Bus Terminal and Depot and Commercial Complex at Kota

i) The Company entered into an "Agreement to Develop" with Rajasthan State Road Transport Corporation (RSRTC), grantor, for Development/Construction of Bus Terminal and Depot and Commercial Complex at Kota, on 19th September, 2007. The project was to be completed within 18 months. Delay in approval of drawing by Statutory Authorities affected the progress of the project and delay in completion.

ii) The project cost has been estimated Rs. 72,00,00,000/- out of which Rs. 28,17,18,607/- have been spent till 31.03.2012. The expenditure incurred has been shown in Balance Sheet under the main head "Fixed Assets" and sub-head "Capital Work in Progress" as "Intangible Asset". The total expenditure will be amortized during the useful period taking into account the revenue receivable for remaining useful period.

iii) Right to Lease Commercial Complex: The period of lease of right of Commercial complex is 40 years (30 years 10 years extended period) from the date of completion of the project. Thereafter, the Commercial Complex will be handed over to RSRTC.

iv) a) Revenue from advertisement, outside the building shall be shared 50% to RSRTC& 50% to the Licensee. No Revenue sharing from advertisement etc. inside the building.

b) The revenue from commercial complex will be shared with RSRTC in the following manner:

v) Maintenance Obligations: The maintenance of Bus Terminal and Depot is the responsibility of RSRTC. It will be Contractual obligations to maintain the commercial complex. The actual maintenance charges will be recovered from the occupants of the commercial complex.

During the year Company has received No objection certificate (NOC) from Airport Authority of India (AAI) Delhi in respect of permissible limit of height of 26.56 mtrs and submitted revised Drawings/ plans to Urban Improvement Trust (Kota) duly acknowledged/signed by RSRTC, Kota for approval, which is awaited. In case of the aforesaid agreement the delay in approval of drawings has automatically extended the completion date as the entire project is to be completed within 18 months from the last approval given by local authority/ government agency.

10. Employee Benefits:

a) Effective from 1st January'2007, the Company adopted Accounting Standard 15 (Revised 2005) on

"Employee Benefits" issued by the Institute of Chartered Accountant of India.

11. MANAGERIAL REMUNERATION

Due to losses incurred during the year, the remuneration to managerial personnel have exceeded the limits prescribed under schedule XIII of Companies Act 1956 by Rs. 1,18,13,409/- (P.Y Nil). The Company has passed a resolution in its Board of Directors meeting held on 30/05/2012 for waiver of the excess remuneration paid subject to approval of shareholders and Central Government as per the applicable provisions of the Act. The excess remuneration of Rs. 1,18,13,409/- has been charged to the statement of profit and loss as the Company proposes to seek Central Government approval for waiver of the excess remuneration .

12. The Company has taken various residential, office and warehouse premises under operating lease agreements. These are generally not non-cancellable and are renewable by mutual consent on mutually agreed terms. There are no restrictions imposed by Lease Agreement. There are no subleases.

13. Related Party Disclosure:

i) List of Related Parties (as ascertained by the management)

1. Parties under common control & Associates:

M/s Ahlcon Parenterals (India) Limited

M/s Tidal Securities Private Ltd.

M/s Ahlcons India Private Limited

M/s. Capricon Industrials Ltd.

M/s. Ahluwalia Builders & Development Group Pvt. Ltd.

2. Parties under Subsidiary Companies

14. The Company is having only one business segment Ã Construction activities, hence no segment reporting is applicable.

The company is mainly engaged in the business of construction. Keeping in view the multifarious jobs at different sites and practical difficulties in measuring building material, individual details with regard to stock and consumption of raw materials are not given. Also the diverse nature of contracts undertaken by the Company and wide variety of material consumed, the additional information has been furnished to the extent practicable.

15. PREVIOUS YEAR FIGURES

Till the year ended 31st March, 2011, the Company was using pre-revised Schedule VI to the Companies Act 1956, for the preparation and presentation of its financial statements. During the year ended 31st March, 2012 the revised Schedule VI notified under the companies Act 1956, has become applicable to the company. The company has reclassified previous year figures to conform to this year's classification.

The accompanying notes are an integral part of the financial statements.

Mar 31, 2011

(I) NATURE OF OPERATIONS

Ahluwalia Contracts (India) Limited is primarily in the business of construction of structural and buildings.

1. CONTINGENT LIABILITIES NOT PROVIDED FOR

S.No. Particulars March 31, 2011 March 31, 2010 (Rs.) (Rs.)

a) Counter guarantees given to bankers against Bank guarantees 4,73,24,73,185 4,26,10,06,857

b) Indemnity Bonds/Performance Bonds/ Surety Bonds / Corporate 1,26,43,95,704 1,19,48,99,037 guarantees given to clients

c) Value Added Tax liability 1,50,70,38,998 28,95,57,881

d) Demand of stamp duty on Real Estate Project 57,41,980 57,41,980

e) Claims against the company not Acknowledged as debt 29,33,60,739 29,56,42,739

f ) Excise duty demand for F.Y. 1998-99 & 2000-2001 46,37,000 46,37,000

g) Service tax demand on allegely wrong availment of abatement on 1,96,11,49,906 1,08,37,50,234 account of free supply of material by the Client

h) Income tax demand 5,02,111 -

Based on legal opinion taken by the Company, discussions with the advocates etc, the Company believes that there is fair chance of decisions in its favour in respect of all items listed in (c) to (g) above and hence no provision is considered necessary against the same. The reply/appeal have been filed before appropriate authority/Court. Disposal is awaited.

2 a) The company has executed Common Wealth Games Village Project. The company has raised R.A. bills amounting to Rs. 638,87,67,898/- up to the March, 2010 which have been certified to the extent of Rs. 571,84,67,898/- . The company has further raised bills and lodged the claims of Rs. 418,02,86,608/- on the client with respect to additional works on account of deviations and other aspects. The client has in turn raised a counter claim on the company for Rs.250,92,91,002/-. Negotiations for the settlements are in progress and affect will be given on final settlement as per the policy consistently followed by the Company. The management is of the opinion that the demand raised by the client is not sustainable.

b) On 19th Jan, 2011 Sri Sumeru Realty Pvt. Ltd (SSRPL) Bangalore, a client invoked the Bank Guarantees amounting to Rs. 500,44,760/- and terminated the Contract on 10.03.11.The Company filed petition in the District and Sessions Court, Bangalore to restrain the Bank for release of Payment against these Bank Guarantees. The Company has also filed application to secure claims of Rs. 22,74,79,303/- The Court restrained the Bank to release the payment of Bank Guarantees.

The matter is being pursued as per direction of the Court. The effect for recovery of dues and assets at site will be accounted for on final settlement/ court order.

c) The Construction of Festival City, Ludhiana was awarded on 10.03.2006 for a contract value of Rs. 110,00,00,00/- for the period of 15 months. . The project was delayed due to various reasons and under suspension since June 2009. During the course of the execution of the project, the Company had entered in to an agreement to create strategic account & agreement to sell in April 2007 for contiguous office space of 28744 sq ft. for a total sale consideration of Rs. 6,46,74,743/-.

The Client's bankers have taken over possession of the project (Building) under SARFESI Act and have filed a suit for recovery in Debt Recovery Tribunal (DRT).

The Company has filed separate petition dated 21/24.06.2010 with DRT II u/s 17 (3) of SARFESI Act (i) to set- aside the possession notice for the space 28744 Sqft (ii) to stay all actions with regard space 28744 Sqft already allotted to the Company by the Client. The matter as such is sub judice.

The recovery of the Company's dues are dependent upon decision of the judicial process. The management is of the opinion that the dues as per books of account are fully recoverable.

3. Capital commitments :- Capital contracts remaining to be executed (net of payments) and not provided for Rs. 58,39,37,834/- (Previous Year Rs. 66,86,43,984/-)

4. In the opinion of the Board, Current Assets, Loans and Advances are approximately of the value stated if realised in the ordinary course of business. The provisions for depreciation and for all known liabilities are adequate and not excess of the amount considered necessary.

5. The Company has initiated the process of obtaining confirmation from suppliers who have registered themselves under the Micro Small Medium Enterprises Development Act, 2006 (MSMED Act, 2006). Based on the information available with the Company, the

6 The Company has 100% subsidiaries namely of M/s. Ahlcon Ready Mix Concrete Pvt. Ltd., Dipesh Mining Pvt. Ltd., Jiwan Jyoti Traders Pvt. Ltd., Paramount Dealcomm Pvt. Ltd., Premsagar Merchants Pvt. Ltd. and Splendor Distributors Pvt. Ltd. As a result of which these companies have become wholly owned subsidiaries of the company.

7 (a) Sundry Debtors, Advances Recoverable and Sundry Creditors balances appearing in the Balance Sheet are subject to confirmation. (b) Advance payments received towards contracts are secured by Bank Guarantees and/or indemnity bonds issued by the company.

8 (a) Fixed Deposit Receipts to the tune of Rs. 44,20,35,886/- (P.Y. Rs. 36,59,44,451/-) along with interest accrued Rs. 2,83,78,990/- (P.Y.

Rs.3,01,57,404/-) have been pledged with the Company's Bankers as margin for Bank Guarantees, Letters of Credits, Security Deposit under lien for Loans obtained from Banks and FDRs are deposited with the court for legal cases against the company.

(b) Working Capital Facilities availed by the company

1) From Canara Bank are secured by way of

a) Personal guarantee of (i) Mr. Bikramjit Ahluwalia (ii) Mr. Shobhit Uppal, (iii) Mrs. Sudershan Walia and (4) Mr. Vikaas Ahluwalia.

b) First Paripassu charge on Stock and Book Debts.

c) Equitable mortgage of Commercial property at Plot. No.A-177,Okhla Industrial Area, Phase-I, New Delhi- Rs. 2,28,00,000/-, valuation report dated 3.3.2007, Equitable mortgage of Commercial property at Plot No. 4, Community Centre, Saket, New Delhi - Rs. 9,76,00,000/- valuation report dated 8.12.2007, Equitable mortgage of Residential property at Plot No. B-7, Saket, New Delhi - Rs. 5,79,00,000/-, valuation report dated 3.3.2007.

2) From Yes Bank Limited are secured by way of

a) First paripassu charge on the current assets of the company.

b) Personal guarantee of (1) Mr. Shobhit Uppal and (2) Mr.Vikaas Ahluwalia

c) Demand Promissory Note for Rs. 20,00,00,000/-.

3) From Standard Chartered Bank are secured by way of

a) First paripassu charge on the current assets of the company along with other Banks in multiple banking arrangements

b) Personal guarantee of (i) Mr. Bikramjit Ahluwalia (ii) Mr. Shobhit Uppal (iii) Mrs. Sudershan Walia and (iv) Mr. Vikaas Ahluwalia.

4) From Axis Bank are secured by way of

a) First paripassu charge on the current assets of the company along with other banks in Multiple Banking Arrangement.

b) Personal Guarantee of (i) Mr. Bikramjit Ahluwalia (ii) Mr. Shobhit Uppal (iii) Mrs. Sudershan Walia (iv) Mr. Vikaas Ahluwalia.

5) From Kotak Mahindra Bank Ltd. are secured by way of First pari passu charge on all existing and future current assets of the company.

a) Personal guarantee of (i) Mr. Bikramjit Ahluwalia (ii) Mr. Vikaas Ahluwalia.

c) Undated cheque in bank's format for the facility amount.

6) From Induslnd Bank Ltd. are secured by way of

a) First paripassu charge on current assets of the company

b) Personal guarantee of (i) Mr. Bikramjit Ahluwalia (ii) Mr. Shobhit Uppal (iii) Mrs. Sudershan Walia and (iv) Mr. Vikaas Ahluwalia.

7) From Citi Bank N.A. are secured by way of

a) First paripassu charge on present and future stocks and book debts of the company.

b) Personal guarantee of (i) Mr. Bikramjit Ahluwalia and (ii) Mrs. Sudershan Walia

c) Demand Promissory Note and letter of continuity for Rs. 58,00,00,000/-.

8) From Bank of Maharashtra are secured by way of

a) First paripassu charge on all current assets of the company alongwith other multiple member banks.

b) Personal guarantee of (i) Mr. Bikramjit Ahluwalia (ii) Mr. Shobhit Uppal (iii) Mrs. Sudarshan Walia (iv) Mr. Vikaas Ahluwalia.

c) Pledge of 15,00,000 Equity shares of the company belonging to the promoters of the Company.

9) From IDBI Bank Ltd.are secured by way of

a) First paripassu charge on entire current assets of the company along with other banks in multiple banking arrangement.

b) Personal Guarantee of (i) Mr.Bikramjit Ahluwalia (ii) Mrs. SudarshanWalia.

10) From State Bank of Patiala are secured by way of

a) First paripassu charge on the entire current assets of the company along with other banks under multiple banking arrangement.

b) Personal Guarantee of (i) Mr. Bikramjit Ahluwalia (ii) Mr. Shobhit Uppal (iii) Mrs. Sudarshan Walia (iv) Mr. Vikaas Ahluwalia.

11) From ING Vysya Bank Ltd.are secured by way of

a) First paripassu charge on the entire present and future current assets of the company with other banks.

b) Personal Guarantee of (i) Mr. Bikramjit Ahluwalia (ii) Mrs. Sudarshan Walia (iii) Mr. Shobhit Uppal (iv) Mr.Vikaas Ahluwalia.

12) From Punjab & Sind Bank are secured by way of

a) First paripassu charge on current assets both present & future viz Raw Materials, Semi finished and finished goods, Consumables, Stores and Spares, Book Debts etc.with participating Lenders.

b) Pledge of 102,71,380 equity shares of the company of the promoters.

c) Personal Guarantee of (i) Mr. Bikramjit Ahluwalia (ii) Mrs. Sudarshan Walia (iii) Mr. Vikaas Ahluwalia.

13) From ICICI bank, Fund based facilities for Rs. 10,00,00,000/- are secured by way of

a) First Paripassu charge on entire stocks and book debts, both present and future

b) Personal Guarantee of (i) Mr.Shobhit Uppal (ii) Mr.Vikaas Ahluwalia

14) From ICICI Bank Ltd., Bank Guarantee facilities of Rs. 50,00,00,000/- is secured by way of Personal guarantee of (i) Mr. Shobhit Uppal (ii) Mr.Vikaas Ahluwalia

15) From Bank of India are secured by way of

a) First Paripassu charge on entire current assets of the company along with other working capital lenders.

b) Personal Guarantee of (i) Mr.Bikramjit Ahluwalia (ii) Mrs. Sudershan Walia

16) From G.E. Capital Services India for working capital/general corporate purpose are secured by way of

a) Hypothecation of specified equipments.

b) Demand promissory Note for Rs. 7,00,00,000/- c) Undated cheque for Rs. 7,00,00,000/- (c) Term Loan facilities availed by the company -

1) From Standard Chartered Bank is secured by way of

a) First and exclusive charge of assets financed by the bank.

b) Personal guarantee of Mr. Bikramjit Ahluwalia

c) Post dated cheque for repayment of interest and principal.

(d) 1) Term Loan facilities taken for machinery / vehicle from, ICICI Bank Ltd., HDFC Bank Ltd. are secured by way of hypothecation

of specified machinery / vehicle.

2) Term loan facilities taken for vehicles from Bank of Maharashtra are secured by way of hypothecation of specified vehicles and personal guarantee of Mr. Bikramjit Ahluwalia

(e) Other Term Loan from TML Financial Services Ltd., L&T Finance Ltd., Magma Fincorp Ltd., SREI Equipments Finance Pvt. Ltd., First Leasing Company of India Ltd. are secured by way of hypothecation of specified machinery / vehicle.

(f) Bank Guarantees Facilities availed from -

1) Allahabad Bank is secured by way of

a) First paripassu charge/ Hypothecation charge over entire current assets of the company both present and future.

b) Personal Guarantee of (i) Mr. Bikramjit Ahluwalia (ii) Mrs. Sudershan Walia (iii) Mr. Shobhit Uppal (iv) Mr. Vikaas Ahluwalia

2) ICICI Bank Ltd. of Rs. 90,00,00,000/- is secured by way of

a) First paripassu charge on entire stocks and book debts, both present and future

b) Personal Guarantee of (i) Mr. Bikramjit Ahluwalia (ii) Mrs. Sudershan Walia.

3) Syndicate bank is secured by way of 100% margin of Rs. 55,00,000/-.

9. (i) Loan to Body Corporate (shown under schedule 11) due from subsidiary companies includes Rs. 4,72,25,162/- (P.Y. Rs. 4,72,25,162/-) (maximum amount due at any time during the year Rs. 4,72,25,162/- (P.Y. Rs. 10,27,60,649/-).

(ii) Sundry creditors includes amount due to subsidiary companies in which Directors are interested Rs. 2,67,14,172/- (P.Y. Rs. 1,98,46,806/-) (maximum amount due at any time during the year Rs. 2,89,22,104/-) (P.Y. Rs. 2,39,84,369/-).

(iii) Sundry debtors includes amount due from companies in which Directors are interested Rs. 3,03,750/- (P.Y. Rs.60,750/-) (Maximum balance at any time during the year Rs. 3,03,750/- (P.Y. Rs. 1,04,406/-).

(iv) Sundry debtors includes amount Rs. 1,83,00,582/- (P.Y. Rs. 51,29,325/-) (Maximum balance at any time during the year Rs. 1,83,00,582/- (P.Y. Rs. 51,29,325/-) due from Chairman & Managing Director Mr. Bikramjit Ahluwalia / proprietary concerns of Mr. Bikramjit Ahluwalia.

(v) Advance recoverable in cash or in kind or for value to be received includes amount due from companies in which directors are interested Rs. 3,79,60,273/- (P.Y. Rs.6,03,79,801/-) Maximum balance due at any time during the year Rs. 15,70,33,188/- (P.Y. Rs.18,38,51,952/-).

11. A sum of Rs. 45,781/- Debit (P.Y. Rs. 75,652/- Debit), relating to earlier years have been considered in respective heads of accounts.

12. Bus Terminal and Depot and Commercial Complex at Kota

i) The Company entered into an "Agreement to Develop" with Rajasthan State Road Transport Corporation (RSRTC), grantor, for Development/Construction of Bus Terminal and Depot and Commercial Complex at Kota, on 19th September, 2007. The project was to be completed within 18 months. Delay in approval of drawing by Statutory Authorities effected the progress of the project and delay in completion. In a meeting held on 13.06.2011, with the Statutory Authorities and RSRTC grantor, it was decided that the project shall be completed and no penalty shall be levied till Dec. 2011.

ii) The project cost has been estimated Rs. 72,00,00,000/- out of which Rs. 14,75,74,583/- have been spent till 31.03.2011. The expenditure incurred has been shown in Balance Sheet under the main head "Fixed Assets" and sub-head "Capital Work in Progress" as "Intangible Asset". The total expenditure will be amortised during the useful period taking into account the revenue receivable for remaining useful period.

iii) Right to Lease Commercial Complex: The period of lease of right of Commercial complex is 40 years (30 years 10 years extended period) from the date of completion of the project. Thereafter, the Commercial Complex will be handed over to RSRTC.

iv) a) Revenue from Advertisement, outside the building shall be 50% to RSRTC. No Revenue sharing from Advertisement etc. inside the building.

v) Maintenance Obligations: The maintenance of Bus Terminal and Depot is the responsibility of RSRTC. It will be Contractual obligations to maintain the commercial complex. The actual maintenance charges will be recovered from the occupants of the commercial complex.

13. Employee Benefits:

a) Effective from 1st January'2007, the Company adopted Accounting Standard 15 (Revised 2005) on "Employee Benefits" issued by the Institute of Chartered Accountant of India.

16. a) Current tax is calculated in accordance with the tax laws applicable to the current financial year and accordingly charged to the profit and loss account for the year.

17. The Company has taken various residential, office and warehouse premises under operating lease agreements. These are generally not non-cancellable and are renewable by mutual consent on mutually agreed terms. There are no restrictions imposed by Lease Agreement. There are no subleases.

18. Related Party Disclosure:

i) List of Related Parties (as ascertained by the management)

1. Parties under common control & Associates: M/s Ahlcon Parenterals (India) Limited

M/s Tidal Securities Private Ltd.

M/s Ahlcons India Private Limited

M/s. Capricon Industrials Ltd.

M/s. Ahluwalia Builders & Development Group Pvt. Ltd.

2. Parties under Subsidiary Companies M/s. Ahlcon Ready Mix Concrete Pvt. Ltd. M/s. Dipesh Mining Pvt. Ltd.

M/s. Jiwanjyoti Traders Pvt. Ltd. M/s. Paramount Dealcomm Pvt. Ltd. M/s. Prem Sagar Merchants Pvt. Ltd. M/s. Splendor Distributors Pvt. Ltd.

3. Key Management Personnels:

Mr. Bikramjit Ahluwalia Chairman & Managing Director

Mr. Shobhit Uppal Dy. Managing Director

Mr. Vikaas Ahluwalia Whole Time Director

Mrs. Sudershan Walia Whole Time Director

Mr. Vinay Pal Whole Time Director (Appointed on 14.08.2010)

4 Relative of Key Management Personnels & Relationship:

Mrs. Rohini Ahluwalia Daughter of Chairman & Managing Director

Mrs. Rachna Uppal Daughter of Chairman & Managing Director

Mrs. Mukta Ahluwalia Daughter of Chairman & Managing Director

Mrs. Pushpa Rani Sister of Chairman & Managing Director

Mrs. Ram Piari Sister of Chairman & Managing Director

Mrs. Raman Pal Mother of Whole Time Director

5. Enterprises over which key managerial personnel is able to exercise significant influence.

Karam Chand Ahluwalia Hospital & Medical Research Society

21. The Company is having only one business segment - Construction activities, hence no segment reporting is applicable.

22. Additional information pursuant to the provisions of paragraph 3, 4-C and 4-D of part II of Schedule VI of the Companies Act, 1956:

The company is mainly engaged in the business of construction. Keeping in view the multifarious jobs at different sites and practical difficulties in measuring building material, individual details with regard to quantities of stock, production, turnover and consumption of raw materials are not given. Also the diverse nature of contracts undertaken by the Company and wide variety of material consumed, the additional information has been furnished to the extent practicable.

Mar 31, 2010

(I) NATUREOF OPERATIONS

a) Ahluwalia Contracts (India) Limited is primarily in the business of construction of wide range of structural buildings.

b) The entire operations of Ready Mix Concrete division were taken over by the wholly owned subsidiary company Ahlcon Ready Mix Concrete Pvt. Ltd. w.e.f. 01-08-2008.

1.CONTINGENT LIABILITIES NOT PROVIDED FOR

March 31, 2010 March 31, 2009 (Rs.) (Rs.)

a) Counter guarantees given tobankers against Bank guarantees 426,10,06,857 376,14,36,603

b) Indemnity Bonds/Performance Bonds/ Surety Bonds / Corporate guarantees giventoclients 119,48,99,037 67,93,17,930

c) Value added Tax liability 28,95,57,881 18,02,90,873

d) Demandofstamp dutyonReal Estate Project 57,41,980 57,41,980

e) Claims against the company not Acknowledgedasdebt 29,56,42,739 29,24,06,394

f) Excise duty demand for F.Y. 1998- 99&2000-2001 46,37,000 46,37,000

g) Service tax demand on disputed availment of abatement on account of free

supplyofmaterialbythe Client 108,37,50,234 54,14,48,666

Based on legal opinion taken by the Company, discussions with the advocates etc, the Company believes that there is fair chance of decisions in its favour in respect of all items listed in (c) to (g) above and hence no provision is considered necessary against the same. The reply/appeal have been fled before appropriate authority/Court. Disposal is awaited.

2. Capital commitments :- Capital contracts remaining to be executed (net of payments) and not provided for Rs. 23,95,000/- (Previous Year Rs. 52,000/-)

3. In the opinion of the Board, Current Assets, Loans and Advances are approximately of the value stated if realised in the ordinary course of business. The provisions for depreciation and for all known liabilities are adequate and not excess of the amount considered necessary.

4. The Company has initiated the process of obtaining confrmation from suppliers who have registered themselves under the Micro Small Medium Enterprises Development Act, 2006 (MSMED Act, 2006). Based on the information available with the Company, the balance due to Micro & Small Enterprises as defned under the MSMED Act, 2006 is as under:

5 During the previous years, the Company has acquired 100% share capital of M/s. Ahlcon Ready Mix Concrete Pvt. Ltd., Dipesh Mining Pvt. Ltd., Jiwan Jyoti Traders Pvt. Ltd., Paramount Dealcomm Pvt. Ltd., Premsagar Merchants Pvt. Ltd. and Splendor Distributors Pvt. Ltd. As a result of which these companies have become wholly owned subsidiaries of the company.

6 a) Sundry Debtors, Advances Recoverable and Sundry Creditors appearing in the Balance Sheet are subject to confrmation.

b) Advance payments received towards contracts are secured by Bank Guarantees and/or indemnity bonds issued by the company.

7 a) Fixed Deposit Receipts to the tune of Rs. 36,59,44,451/- (P.Y. Rs. 30,72,76,600/-) along with interest accrued Rs. 3,01,57,404/-

(P.Y. Rs.2,55,92,899/-) have been pledged with the Companys Bankers as margin for Bank Guarantees, Letters of Credits, Security Deposit and for Loans obtained from Banks.

b) Working capital facilities & Bank Guarantees availed by the company

- From Canara Bank are secured by way of

1) Personal guarantee of (1) Mr. Bikramjit Ahluwalia (2) Mr. Shobhit Uppal, (3) Mrs. Sudershan Walia and (4) Mr. Vikaas Ahluwalia.

2) 1st Pari passu charge on stock and Receivable.

3) Equitable mortgage of Commercial property at Plot. No.A-177,Okhla Industrial Area, Phase-I, New Delhi- Rs 2.28 Crores, valuation report dated 3.3.2007, equitable mortgage of Commercial property at Plot No. 4, Community Centre, Saket, New Delhi Ã Rs 9.76 Crores, valuation report dated 8.12.2007, equitable mortgage of Residential property at Plot No. B-7, Saket, New Delhi ÃRs 5.79 Crores, valuation report dated 3.3.2007.

- From Yes Bank Limited are secured by way of

1) First pari passu charge on the current assets of the company with other Banks in multiple banking arrangements.

2) Personal guarantee of (1) Mr. Bikramjit Ahluwalia and (2) Mrs. Sudershan Walia.

- From Standard Chartered Bank are secured by way of

1) First pari passu charge on the current assets of the company along with other Banks in multiple banking arrangements

2) Personal guarantee of (1) Mr. Bikramjit Ahluwalia (2) Mr. Shobhit Uppal (3) Mrs. Sudershan Walia and (4) Mr. Vikaas Ahluwalia.

- From Axis bank are secured by way of

1) First pari passu charge on the current assets of the company,along with other banks in Multiple Banking Arrangement.

2) Personal Guarantee of (1)Mr.Bikramjit Ahluwalia (2) Mr.Shobhit Uppal (3)Mrs.Sudershan Walia (4) Mr.Vikaas Ahluwalia.

- From Kotak Mahindra Bank Ltd. are secured by way of

1) First pari passu charge on all existing and future current assets of the company along with other Banks.

2) Personal guarantee of (1) Mr. Bikramjit Ahluwalia (2) Mr. Vikaas Ahluwalia.

3) Undated cheque in banks format for the facility amount.

- From Induslnd Bank Ltd. are secured by way of

1) First pari passu charge on current assets of the company

2) Personal guarantee of (1) Mr. Bikramjit Ahluwalia (2) Mr. Shobhit Uppal (3) Mrs. Sudershan Walia and (4) Mr. Vikaas Ahluwalia.

- From Citi Bank N.A. are secured by way of

1) First pari passu charge on present and future stocks and book debts of the company.

2) Personal guarantee of (1) Mr. Bikramjit Ahluwalia and (2) Mrs. Sudershan Walia (3) Mr. Shobhit Uppal (4) Mr. Vikas Ahluwalia.

3) Demand Promissory Note and letter of continuity for Rs 58 Crores.

- From Bank of Maharashtra Mumbai by way of

1) First pari passu charge on all current assets of the company alongwith other multiple member banks.

2) Personal guarantee of (1) Mr. Bikramjit Ahluwalia (2) Mr. Shobhit Uppal (3) Mrs. Sudarshan Walia (4) Mr. Vikaas Ahluwalia.

3) Pledge of 15,00,000 Equity shares of the company belonging to the promoters of the Company.

- From IDBI Bank Ltd. are secured by way of

1) First pari passu charge on entire current assets of the company along with other banks in multiple banking arrangement.

2) Personal Guarantee of (i) Mr. Bikramjit Ahluwalia (ii) Mrs. Sudarshan Walia.

- From State Bank of Patiala are secured by way of

1) First pari passu charge on the current assets of the company along with other banks in multiple banking arrangement.

2) Personal Guarantee of (i) Mr. Bikramjit Ahluwalia (ii) Mr. Shobhit Uppal (iii) Mrs. Sudarshan Walia (iv)Mr. Vikaas Ahluwalia.

- From ING Vysya Bank Ltd.are secured by way of

1) First pari passu charge on the entire present and future current assets of the company with other banks.

2) Personal Guarantee of (i) Mr.Bikramjit Ahluwalia (ii) Mrs.Sudarshan Walia (iii) Mr.Shobhit Uppal (iv) Mr Vikaas Ahluwalia.

- From Punjab & Sind Bank are secured by way of

1) First pari passu charge on current assets both present & future viz Raw Materials,Semi fnished and fnished goods,Consumables,Stores and Spares,Book Debts etc.with participating Lenders.

2) Pledge of 102,71,380 equity shares of the company of the promoters.

3) Personal Guarantee of (i) Mr.Bikramjit Ahluwalia (ii) Mrs.Sudarshan Walia (iii) Mr.Vikaas Ahluwalia.

(c) Term Loan facilities:

- From Standard Chartered Bank is secured by way of

1) First and exclusive charge of assets fnanced by the bank.

2) Personal guarantee of Mr. Bikramjit Ahluwalia.

- From Punjab & Sind Bank

1) Negative Lien on licensing rights and future lease rental receivables.

2) All future lease rentals to be received will be charged to bank and company not to raise any loan against such Rent/Lease receivables.

3) Personal Guarantee of (i) Mr.Bikramjit Ahluwalia (ii) Mrs.Sudarshan Walia (iii) Mr.Vikaas Ahluwalia

(d) Term Loan facilities taken for machinery / vehicle from ABN Amro Bank, ICICI Bank Ltd., HDFC Bank Ltd., Kotak Mahindra Bank Ltd., Standard Chartered Bank, Bank of Maharashtra are secured by way of hypothecation of specifed machinery / vehicle. Further secured by personal guarantee of the Managing Director.

(e) Other Term Loan from Citi Corp Finance Ltd., L&T Finance Ltd., TML Financial Services Ltd., Reliance Capital Finance Ltd., Magma Fincorp Ltd., SREI Equipments Finance Pvt. Ltd. are secured by way of hypothecation of specifed machinery / vehicle. Further secured by personal guarantee of the Managing Director.

(f) Bank guarantees facilities availed from Ã

1) Allahabad Bank is secured by way of

a) First pari passu charge/ Hypothecation charge over entire current assets of the company both present and future.

b) Pledge of 14,00,000 equity shares of Ahlcon Parenterals (India) Limited.

c) Equitable mortgage of residential property of Mr. Bikramjit Ahluwalia at B-10 Saket, New Delhi, value Rs 7.53 Crores as on 7.4.2006.

d) Personal Guarantee of:(i) Mr. Bikramjit Ahluwalia (ii) Mrs. Sudershan Walia (iii) Mr. Shobhit Uppal (iv) Mr. Vikaas Ahluwalia

2) Bank of Maharashtra New Delhi is secured by way of 100% cash margin.

3) Syndicate Bank is secured by way of

a) First pari passu charge on entire current assets of the company along with other bankers

b) Personal Guarantee of:(i) Mr. Bikramjit Ahluwalia (ii) Mrs. Sudershan Walia (iii) Mr. Shobhit Uppal. (iv) Mr. Vikaas Ahluwalia.

4) ICICI Bank Ltd. is secured by way of

a) First pari passu charge on the current assets of the company.

b) Personal Guarantee of:(i) Mr. Bikramjit Ahluwalia (ii) Mrs. Sudershan Walia.

8. The company is mainly engaged in the business of construction. Keeping in view the multifarious jobs at diferent sites and practical difculties in measuring building material, individual details with regard to quantities of stock, production, turnover and consumption of raw materials are not given.

9. (i) Loan to Body Corporate (shown under schedule 11) due from subsidiary companies includes Rs. 4,72,25,162/- (P.Y. Rs.4,82,14,181/-) (maximum amount due at any time during the year Rs. 10,27,33,532/- (P.Y. Rs. 4,96,15,149/-).

(ii) Sundry creditors includes amount due to subsidiary companies in which Directors are interested Rs. 1,98,46,806/- (P.Y. Rs. 33,17,288/-) (maximum amount due at any time during the year Rs. 2,39,84,369/-) (P.Y. Rs.2,29,75,186/-).

(iii) Sundry debtors includes amount due from companies in which Directors are interested Rs. 60,750/- (P.Y. Rs.- Nil-) (Maximum balance at any time during the year Rs. 1,04,406/- (P.Y. Rs. 30,61,758/-).

(iv) Sundry debtors includes amount due from key management personnel in which Directors are interestedRs.51,29,325/- (P.Y. Rs.- Nil-) (Maximum balance at any time during the year Rs. 51,29,325/- (P.Y. Rs. -Nil-).

(v) Advance recoverable in cash or in kind or for value to be received includes amount due from companies in which Directors are interested Rs. 6,03,79,801/- (P.Y. Rs. 4,96,94,606/-) Maximum balance at any time during the year Rs. 18,38,51,952/- (P.Y. Rs. 10,96,55,248/-).

10. Loans & Advances in the nature of Loans given to Subsidiary Companies:-

11. A sum of Rs. 75,652/- Debit (P.Y. Rs. 27,350/- Debit), relating to earlier years have been considered in respective heads of accounts.

12. Employee Benefts:

a) Efective from 1st January2007, the Company adopted Accounting Standard 15 (Revised 2005) onÃEmployee BeneftsÃ issued by the Institute of Chartered Accountant of India.

b) The following table sets out the status of the gratuity scheme plan as at 31st March, 2010

13. The Companys Gratuity fund is managed by Life Insurance Corporation of India. The plan assets under the fund are deposited under approved securities.

14. AUDITORSREMUNERATION

15. Managerial Remuneration paid/payable to Chairman and Managing Director, and other Directors for the period are as follows:

16. a) Current tax is calculated in accordance with the tax laws applicable to the current fnancial year and accordingly charged to the proft and loss account for the year.

17. Related Party Disclosure:

18. Earnings Per Share:

19. Disclosure in accordance with Accounting Standard Ã7 (Revised) amount due from/to customers on construction Contracts

20. The Company is having only one business segment Ã Construction activities, hence no segment reporting is applicable.

21. Previous year fgures have been regrouped and/or rearranged wherever considered necessary to make them comparable with current year fgures.

22. Additional information pursuant to the provisions of paragraph 3, 4-C and 4-D of part II of Schedule VI of the Companies Act, 1956:

In view of the diverse nature of contracts undertaken by the Company and wide variety of material concerned, the additional information has been furnished to the extent practicable.

(A) FLATS / SPACE CONSTRUCTED, SOLD & STOCKSTHEREOF

(B) CIF VALUE OF IMPORTS

(C) EXPENDITURES IN FOREIGN CURRENCY

(D) ADVANCE PAYMENT IN FOREIGN CURRENCY (PAYMENT BASIS)

(E) CONSUMPTION OF IMPORTED AND INDIGENOUS MATERIAL

(F) RAW MATERIAL CONSUMED

(G) PARTICULARS REGARDING TRADING GOODS (Construction related material)

Previous Year:-

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