Notes to Accounts of Ansal Housing Ltd.

Mar 31, 2025

1.6 PROVISIONS

A provision is recognized if, as a result of a past event, the Company has a present legal or constructive obligation
that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the
obligation. Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects
current market assessments of the time value of money and the risks specific to the liability. The amount recognised
as a provision is the best estimate of the consideration required to settle the present obligation at the end of the
reporting period taking into account the risk and uncertainties surrounding the obligation.

When some or all of the economic benefits required to settle a provision are expected to be recovered from a third
party, a receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the
amount of the receivable can be measured reliably.

1.7 CONTINGENT LIBILITIES AND ONEROUS CONTRACTS

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the
occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a
present obligation that is not recognised because it is not probable that an outflow of resources will be required to
settle the obligation or a reliable estimate of the amount cannot be made. The Company does not recognise a
contingent liability, but discloses its existence in the financial statements.

Present obligations arising under onerous contracts are recognised and measured as provisions. An onerous contract
is considered to exist where the Company has a contract under which the unavoidable costs of meeting the obligations
under the contract exceed the economic benefits expected to be received from the contract.

1.8 FOREIGN CURRENCY

These financial statements are presented in Indian rupees (''Rs.'' or ''INR''), which is the functional currency of the
Company.

Transactions in foreign currencies are recorded at the exchange rate prevailing on the date of transaction. Foreign
currency denominated monetary assets and liabilities are re-measured into the functional currency at the exchange
rate prevailing on the balance sheet date.

Exchange differences on monetary items are recognised in profit or loss in the period in which they arise.

1.8a Si nce the figures are reported in lakh in financial statement, there could be casting differences on account of rounding
off.

1.9 INCOME TAXES

- Income tax expense comprises current and deferred taxes. Income tax expense is recognized in the Statement
of Profit and Loss except when they relate to items that are recognised outside profit or loss (whether in other
comprehensive income or directly in equity), in which case tax is also recognised outside profit or loss.

- The income tax expense or credit for the period is the tax payable on the current period''s taxable income based
on the applicable income tax rate.

- Deferred tax assets and liabilities are recognized for the future tax consequences of temporary differences
between the carrying values of assets and liabilities and their respective tax bases, and unutilized business loss
and depreciation carry-forwards and tax credits. Such deferred tax assets and liabilities are computed using tax
rates (and laws) that have been enacted or substantially enacted by the end of the reporting period and are
excepted to apply when the related deferred income tax asset is realised or the deferred income tax liability is
settled. Deferred tax assets are recognized to the extent that it is probable that future taxable income will be
available against which the deductible temporary differences, unused tax losses, depreciation carry-forwards
and unused tax credits could be utilized.

- Deferred tax assets and liabilities are measured based on the tax rates that are expected to apply in the period
when the asset is realized or the liability is settled, based on tax rates and tax laws that have been enacted or
substantively enacted by the balance sheet date.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets
against current tax liabilities and when they relate to income taxes levied by the same taxation authority and
the Company intends to settle its current tax assets and liabilities on a net basis.

- Current and deferred tax are recognised in profit or loss, except when they relate to items that are recognised
in other comprehensive income or directly in equity, in which case, the current and deferred tax are also
recognised in other comprehensive income or directly in equity respectively.

1.10 EARNINGS PER SHARE

Basic earnings per share has been computed by dividing profit/loss for the year by the weighted average number of
shares outstanding during the year. Partly paid up shares are included as fully paid equivalents according to the
fraction paid up. Diluted earnings per share has been computed using the weighted average number of shares and
dilutive potential shares, except where the result would be anti-dilutive.

1.11 INVENTORIES

Inventories are valued as under :

a) Building Material, Stores, Spares parts etc. . At lower of cost (using FIFO method) or net realizable value.

b) Completed Units (Unsold) At lower of cost or net realizable value.

c) Land At lower of cost or net realizable value.

d) Project/Contracts work in progress At lower of cost or net realizable value.

Cost of Completed units and project/ work in progress includes cost of land, construction/development cost and
other related costs incurred.

Net Realizable value is the estimated selling price in the ordinary course of business less estimated costs of completion
and estimated costs necessary to make the sale.

1.12 PROPERTY, PLANT AND EQUIPMENT

- Property, plant and equipment are stated at cost of acquisition or construction less accumulated depreciation
less accumulated impairment, if any. The cost comprises purchase price, directly attributable cost for making
the assets ready for intended use, borrowing cost attributable to construction of qualifying assets, upto the
date the assets is ready for its intended use. Freehold land is measured at cost and is not depreciated.

- Interest cost incurred for constructed assets is capitalized up to the date the asset is ready for its intended use,
based on borrowings incurred specifically for financing the asset or the weighted average rate of all other
borrowings, if no specific borrowings have been incurred for the asset.

- Depreciation is provided on the Straight Line Method (SLM) over the estimated useful lives of the assets
considering the nature, estimated usage, operating conditions, past history of replacement, anticipated
technological changes, manufacturers warranties and maintenance support. Taking into account these factors,
the Company has decided to apply the useful life for various categories of property, plant & equipment, which
are as prescribed in Schedule II of the Act. Estimated useful lives of assets are as follows:

- The useful lives is reviewed at least at each year end. Changes in expected useful lives are treated as change in
accounting estimate.

- Leased assets and leasehold improvements are amortized over the period of the lease or the estimated useful
life whichever is lower.

- Assets held under finance leases are depreciated over their expected useful lives on the same basis as owned
assets or, where shorter, the term of the relevant lease.

- Depreciation is not recorded on capital work-in-progress until construction and installation are complete and
the asset is ready for its intended use.

The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at
each financial year end and adjusted prospectively, if appropriate.

1.13 LEASES

Where the company is the lessee

Right of use assets and lease liabilities

- For any new contracts entered into on or after 1 April, 2019, (the transition approach has been explained and
disclosed in Note 47) the Company considers whether a contract is, or contains a lease. A lease is defined as ''a
contract, or part of a contract, that conveys the right to use an asset (the underlying asset) for a period of time
in exchange for consideration''

- Classification of lease

The Company enters into leasing arrangements for various assets. The assessment of the lease is based on
several factors, including, but not limited to, transfer of ownership of leased asset at end of lease term, lessee''s
option to extend/purchase etc.

- Recognition and initial measurement

At lease commencement date, the Company recognizes a right-of-use asset and a lease liability on the balance
sheet. The right-of-use asset is measured at cost, which is made up of the initial measurement of the lease
liability, any initial direct costs incurred by the Company, an estimate of any costs to dismantle and remove the
asset at the end of the lease (if any), and any lease payments made in advance of the lease commencement
date (net of any incentives received).

- Subsequent measurement

The Company depreciates the right-of-use assets on a straight-line basis from the lease commencement date
to the earlier of the end of the useful life of the right-of use asset or the end of the lease term. The Company
also assesses the right-of-use asset for impairment when such indicators exist.

At lease commencement date, the Company measures the lease liability at the present value of the lease
payments unpaid at that date, discounted using the interest rate implicit in the lease if that rate is readily
available or the Company''s incremental borrowing rate. Lease payments included in the measurement of the
lease liability are made up of fixed payments (including in substance fixed payments) and variable payments
based on an index or rate. Subsequent to initial measurement, the liability will be reduced for payments made
and increased for interest. It is re-measured to reflect any reassessment or modification, or if there are changes
in substance fixed payments. When the lease liability is re-measured, the corresponding adjustment is reflected
in the right-of-use asset.

The Company has elected to account for short-term leases and leases of low-value assets using the practical
expedients. Instead of recognizing a right-of-use asset and lease liability, the payments in relation to these are
recognized as an expense in standalone statement of profit and loss on a straight-line basis over the lease
term.

Where the company is the lessor

- Leases in which the Company does not transfer substantially all the risks and rewards of ownership of an asset
are classified as operating leases. Rental income from operating lease is recognized on a straight-line basis
over the term of the relevant lease, except when the lease rentals, increase are in line with general inflation
index. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying
amount of the leased asset and recognized over the lease term on the same basis as rental income. Contingent
rents are recognized as revenue in the period in which they are earned.

- Leases are classified as finance leases when substantially all of the risks and rewards of ownership transfer from
the Company to the lessee. Amounts due from lessees under finance leases are recorded as receivables at the
Company''s net investment in the leases. Finance lease income is allocated to accounting periods so as to
reflect a constant periodic rate of return on the net investment outstanding in respect of the lease.

1.14 IMPAIRMENT

- At each balance sheet date, the Company assesses whether there is any indication that any property, plant and
equipment with finite lives may be impaired. If any such impairment exists the recoverable amount of an asset
is estimated to determine the extent of impairment, if any. Where it is not possible to estimate the recoverable
amount of an individual asset, the Company estimates the recoverable amount of the cash-generating unit to
which the asset belongs.

- Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the
estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects
current market assessments of the time value of money and the risks specific to the asset for which the estimates
of future cash flows have not been adjusted.

- If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount,
the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment
loss is recognized immediately in the Statement of Profit and Loss.

1.15 EMPLOYEE BENEFITS

a) Gratuity

The Company have an obligation towards gratuity, a defined benefit retirement plan covering eligible employees
and the Company funds the benefit through contributions.

For defined benefit retirement benefit plans, the cost of providing benefits is determined using the projected
unit credit method, with actuarial valuations being carried out at the end of each year. Remeasurement,
comprising actuarial gains and losses, the effect of the changes to the asset ceiling and the return on plan
assets (excluding net interest), is reflected immediately in the balance sheet with a charge or credit recognised
in other comprehensive income in the period in which they occur. Remeasurement recognised in other
comprehensive income is reflected immediately in retained earnings and is not reclassified to profit or loss.
Past service cost is recognised in profit or loss in the period of a plan amendment. Net interest is calculated by
applying the discount rate at the beginning of the period to the net defined benefit liability or asset. Defined
benefit costs are categorized as follows:

i) service cost (including current service cost, past service cost, as well as gains and losses on curtailments
and settlements);

ii) net interest expense or income; and

iii) re-measurement

The Company presents the first two components of defined benefit costs in profit or loss in the line item
''Employee benefits expense''. Curtailment gains and losses are accounted for as past service costs.

The retirement benefit obligation recognised in the balance sheet represents the actual deficit or surplus in the
Company''s defined benefit plans. Any surplus resulting from this calculation is limited to the present value of
any economic benefits available in the form of refunds from the plans or reductions in future contributions to
the plans.

A liability for a termination benefit is recognised at the earlier of when the entity can no longer withdraw the
offer of the termination benefit and when the entity recognizes any related restructuring costs.

b) Compensated absences

A liability of compensated absences recognised in the period the related service is rendered at the cost of
providing benefits is determined using the projected unit credit method, with actuarial valuations being carried
out at the end of each year.

c) Provident and other funds

Payments to defined contribution retirement benefit plans are recognised as an expense when employees have
rendered service entitling them to the contributions.

Contribution towards provident fund for the employees is made to the regulatory authorities, where the Company
has no further obligations. Such benefits are classified as Defined Contribution Schemes as the Company does
not carry any further obligations, apart from the contributions (currently 12% of employees'' salary) made on a
monthly basis. Contribution paid during the year are charged to Statement of Profit and Loss.

d) Leave Encashment

Provision for leave encashment is made on the basis of actuarial valuation done at the year end. Actuarial

gains/ losses are recognised in the year in which such gains/ losses arise.

e) Measurement date

The measurement date of retirement plans is 31 March .

1.16 SEGMENT REPORTING

The Company is engaged mainly in the business of promotion, construction and development of integrated townships,
residential and commercial complexes, multi-storeyed buildings, flats, houses, apartments, shopping malls etc.. These
in the context of Ind AS 108 - operating segments reporting are considered to constitute one reportable segment.

1.17 BORROWING COST

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are
assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the
cost of those assets, until such time as the assets are substantially ready for their intended use or sale. All other
borrowing costs are recognised in profit and loss in the period in which they are incurred.

Interest income earned on the temporary investment of specific borrowings pending their expenditure on qualifying
assets is deducted from the borrowing costs eligible for capitalization.

All other borrowing costs are recognised in profit or loss in the period in which they are incurred.

1.18 FINANCIAL INSTRUMENTS

a) Classification, initial recognition and measurement

- A financial instrument is any contract that gives rise to a financial asset of one entity and a financial
liability or equity instrument of another entity. Financial assets other than equity instruments are classified
into categories: financial assets at fair value through profit or loss and at amortized cost. Financial assets
that are equity instruments are classified as fair value through profit or loss or fair value through other
comprehensive income. Financial liabilities are classified into financial liabilities at fair value through profit
or loss.

- Financial instruments are recognized on the balance sheet when the Company becomes a party to the
contractual provisions of the instrument.

- Initially, a financial instrument is recognized at its fair value. Transaction costs directly attributable to the
acquisition or issue of financial instruments are recognized in determining the carrying amount, if it is not
classified as at fair value through profit or loss. Subsequently, financial instruments are measured according
to the category in which they are classified.

- Financial assets at amortized cost: Financial assets having contractual terms that give rise on specified
dates to cash flows that are solely payments of principal and interest on the principal outstanding and
that are held within a business model whose objective is to hold such assets in order to collect such
contractual cash flows are classified in this category. Subsequently, these are measured at amortized cost
using the effective interest method less any impairment losses.

- Equity investments at fair value through other comprehensive income: These include financial assets that
are equity instruments and are irrevocably designated as such upon initial recognition. Subsequently,
these are measured at fair value and changes therein are recognized directly in other comprehensive
income, net of applicable income taxes.

- When the equity investment is derecognized, the cumulative gain or loss in equity is transferred to retained
earnings.

- Financial assets at fair value through profit or loss (FVTPL): Financial assets are measured at fair value
through profit or loss unless it is measured at amortized cost or at fair value through other comprehensive
income on initial recognition. The transaction costs directly attributable to the acquisition of financial
assets at fair value through profit or loss are immediately recognised in profit or loss.

- Equity instruments: An equity instrument is any contract that evidences residual interests in the assets of
the Company after deducting all of its liabilities. Equity instruments issued by the Company are recorded
at the proceeds received, net of direct issue costs.

- Financial liabilities at fair value through profit or loss: Derivatives, including embedded derivatives separated
from the host contract, unless they are designated as hedging instruments, for which hedge accounting is
applied, are classified into this category. These are measured at fair value with changes in fair value
recognized in the Statement of Profit and Loss.

- Financial guarantee contracts: These are initially measured at their fair values and, are subsequently
measured at the higher of the amount of loss allowance determined or the amount initially recognized
less, the cumulative amount of income recognized.

- Other financial liabilities: These are measured at amortized cost using the effective interest method.

b) Determination of fair value:

The fair value of a financial instrument on initial recognition is normally the transaction price (fair value of the
consideration given or received). Subsequent to initial recognition, the Company determines the fair value of
financial instruments that are quoted in active markets using the quoted bid prices (financial assets held) or
quoted ask prices (financial liabilities held) and using valuation techniques for other instruments. Valuation
techniques include discounted cash flow method and other valuation models.

c) Derecognition of financial assets and financial liabilities:

The Company derecognizes a financial asset only when the contractual rights to the cash flows from the asset
expires or it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to
another entity. If the Company neither transfers nor retains substantially all the risks and rewards of ownership
and continues to control the transferred asset, the Company recognizes its retained interest in the asset and an
associated liability for amounts it may have to pay. If the Company retains substantially all the risks and rewards
of ownership of a transferred financial asset, the Company continues to recognize the financial asset and also
recognizes a collateralized borrowing for the proceeds received.

Financial liabilities are derecognized when these are extinguished, that is when the obligation is discharged,
cancelled or has expired.

d) Impairment of financial assets:

The Company recognizes a loss allowance for expected credit losses on a financial asset that is at amortized
cost. Loss allowance in respect of financial assets is measured at an amount equal to life time expected credit
losses and is calculated as the difference between their carrying amount and the present value of the expected
future cash flows discounted at the original effective interest rate.

1.19 USE OF ESTIMATES AND JUDGEMENTS

- The preparation of financial statements in conformity with Ind AS requires management to make judgments, estimates
and assumptions, that affect the application of accounting policies and the reported amounts of assets, liabilities
and disclosures of contingent assets and liabilities at the date of these financial statements and the reported amounts
of revenues and expenses for the years presented. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed at each balance sheet date. Revisions to accounting estimates
are recognised in the period in which the estimate is revised and future periods affected.

In particular, information about significant areas of estimation of uncertainty and critical judgements in applying
accounting policies at the date of the financial statements, which may cause a material adjustment to the carrying
amounts of assets and liabilities within the next financial year the amounts recognised in the financial statements are
given below:

a) Revenue Recognition

The Revenue is more dependent over the estimated cost and estimated revenue of the projects. The Company
estimates total cost and total revenue of the project at the time of launch of the project. These are reviewed at
each reporting date. Significant assumptions are required in determining the stage of completion and the
estimated total contract cost. These estimates are based on events existing at the end of each reporting date.

b) Inventory

Inventory of real estate property including work-in-progress is valued at lower of cost and net realizable value
(NRV). NRV of completed property is assessed by reference to market prices existing at the reporting date and
based on comparable transactions made by the Company and/or identified by the Company for properties in
same geographical area. NRV of properties under construction/development is assessed with reference to
marked value of completed property as at the reporting date less estimated cost to complete.

c) Deferred Tax Assets/Liabilities

Recognition of deferred tax assets is based on estimates of taxable profits in future years. The Company prepares
detailed cash flow and profitability projections, which are reviewed by the board of directors of the Company.

d) Contingent Liabilities

Assessment of the status of various legal cases/claims and other disputes where the Company does not expect
any material outflow of resources and hence these are reflected as contingent liabilities (Refer Note 33)

e) Defined benefit plans

The cost and present value of the gratuity obligation and compensated absences are determined using actuarial
valuations. An actuarial valuation involves making various assumptions that may differ from actual developments
in the future. These include the determination of the discount rate, future salary increases, attrition rate and
mortality rates. Due to the complexities involved in the valuation and its long-term nature, a defined benefit
obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting
date.

f) Useful Life of Depreciable Assets/Amortisable Assets

Management reviews its estimate of the useful lives of depreciable/ amortisable assets at each reporting date,
based on the expected utility of the assets. Certainties in these estimates relate to technical and economic
obsolescence that may change the utility of assets.

g) Valuation of investment in subsidiaries and associate

Investments in Subsidiaries and associate are carried at cost. At each balance sheet date, the management
assesses the indicators of impairment of such investments. This requires assessment of several external and
internal factor including capitalisation rate, key assumption used in discounted cash flow models (such as
revenue growth, unit price and discount rates) or sales comparison method which may affect the carrying value
of investments in subsidiaries and associate.

h) Leases

The Company determines the lease term as the non-cancellable term of the lease, together with any periods
covered by an option to extend the lease if it is reasonably certain to be exercised, or any periods covered by an
option to terminate the lease, if it is reasonably certain not to be exercised.

The Company has several lease contracts that include extension and termination options. The Company applies
judgement in evaluating whether it is reasonably certain whether or not to exercise the option to renew or
terminate the lease. That is, it considers all relevant factors that create an economic incentive for it to exercise
either the renewal or termination. After the commencement date, the Company reassesses the lease term if
there is a significant event or change in circumstances that is within its control and affects its ability to exercise
or not to exercise the option to renew or to terminate (e.g., construction of significant leasehold improvements
or significant customisation to the leased asset).

---

Mar 31, 2024

8.1 Trade Receivable ageing schedule for the year ended as on March 31, 2024 and March 31, 2023 is given below

The trade receivables are recognised on project basis in accordance with the revenue recognition policy of the Company which states recognition of revenue only when the underlying project is substancially complete. Therefore, it is not rational to break the entire trade receivable agewise.

8.2 The average credit period is 21 to 45 days. For payments, beyond credit period, interest is charged as per contractual rate on outstanding balances which has been accounted for as per the policy of the company.

8.3 The Trade Receivables are considered good as the possession is given to the customers and subsequently registry is executed only when complete payment is received against unit booked by the customers and accordingly there is no credit risk. Some customers have demanded interest on delayed delivery and the same is disputed by the company.

8.4 Trade Receivables includes amounting Rs.310.89 (Previous Year: Rs. 207.40 Lakh) from subsidiary companies.

14.1 Terms/ Rights attached to equity shares

The Company has only one class of equity shares having a par value of Rs.10/- per share. Each holder of equity shares is entitled to one vote per share. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation of the Company, the holders of equity shares would be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of the equity shares held by the shareholders.

15.1 Nature and purpose of reserves:

- Capital Reserve - The Company has transferred the amount received on forfeiture of partly paid share/warrant in Capital reserve.

- Capital Redemption Reserve - The Company has transferred a part of the net profit of the company to the Capital Redemption Reserve in previous years on buy back of equity shares.

- Securities Premium - The amount received in excess of the face value of the equity share issued by the company is recognised in securities premium reserve.

- General Reserve - The Company has transferred a part of the net profit of the company to the general reserve in previous years.

- Retained earnings - Retained earnings are profits of the company earned till date less transferred to general reserve.

15.2 The Company had revalued building on March 31, 1996 on the basis of approved valuer report and had balance of Rs. 67.20 Lakh (Previous Year: Rs. 67.20 Lakh). This revaluation reserve has been clubbed into General Reserve due to adoption of deemed cost option under Ind AS.

16.1 Term Loan from Corporate Bodies referred above to the extent of:

- Rs. 15,565.89 Lakh (Previous Year: Rs. 15,525.89 Lakh) are secured by way of mortgage of project land owned by the Company and its subsidiaries/associate situated at Agra, Indore, Meerut and certain Gurgaon projects, mortgage of Leasehold building/ few unsold area and building situated at Noida , assignment of receivables of Agra, Indore, Meerut and certain Gurgaon projects and guaranteed by promoter director.

- Rs. 5,659.11 (Previous Year: Rs. 5,659.11 Lakh) are secured by way of mortgage of land owned by the Company and its subsidiaries situated at Yamunanagar and Amritsar, hypothecation of finished goods and assignment of receivables of these projects, corporate guarantee of Anjuman, Wrangler and Maestro and guaranteed by promoter director.

- Rs. 2,809.32 Lakh (Previous Year: Rs. 2,915.00 Lakh) are secured by way of mortgage(second charge) of land owned by the Company and its subsidiaries situated at Gurgaon project: Highland Park(15 units only), assignment of finished goods and balance receivables of above projects, corporate guarantee of Identity Buildtech Pvt. Ltd.and guaranteed by promoter director.

- The rate of interest are as per the sanction letter/agreement.

16.2 Vehicle/ Equipment Loan from Bank/ Corporate Bodies referred above are secured by way of hypothecation of respective vehicle/ construction equipment.

16.3 Term Loan from Corporate Bodies referred above to the extent of:

Rs. 24,034.33 Lakh have been guaranteed by the promoter director (previous year- 24,100.00 Lakh )

Rs. 2,809.32 Lakh have been guaranteed by the subsidiary companies.(previous year- 8574.11 Lakh )

16.4 Public Deposits:

In respect of overdue deposits accepted by the Company/holding company, an appeal before the NCLAT against order dated September 21,2022 of NCLT was filed and the NCLAT Vide order dated 14.12.2022 rejected the appeal of the Company for seeking time extension for repayment of overdue deposits and remitted back the matter to the NCLT to take consequential steps in terms of section 74 (3) of the Act.

Further, during the earlier year and previous year the company had entered into full and final settlement of the balance payment of the maturity amount and is duly honouring its commitment w.r.t the full and final settlement terms agreed with the respective deposit holders.

In due compliance with the Act, holistically, the company has settled substantial depositors. The PDC''s as issued is being duly encashed/ honoured as per the agreed terms and conditions of the settlement.

The Company has taken legal opinion to substantiate/ corroborate its acts. As per the legal opinion, the process of repayment adopted by the Company meets the requirement of the applicable provision of the Companies Act, 2013.

16.5 Loan Recall Notice: (IFCI)

The company had received a letter dated 28/01/2021 on "Revocation of settlement of outstanding dues approved vide letter dated 17/11/2017” from IFCI Limited("Lender”) and consequently received "Notice for payment of Dues” showing an outstanding balance of Rs. 5,757.45 Lakh & Rs7,226.68 Lakh as principal and interest respectively till 08.04.2022. Due to the revocation of restructuring, interest liability has been enhanced due to default interest.

During the previous year, the company received notice dated 08.04.2022 under Sec 13(2) of the Securitisation and Reconstructions of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002 from IFCI Ltd. ("Lender”) demanding full repayment.

Further, the company had received notice u/s 13(4) of the SARFASAI Act, 2002 where IFCI Limited had taken over the symbolic possession on 5th August 2022 & 10th August, 2022 of mortgaged properties situated at Amritsar and Yamuna Nagar respectively. The company has also received summon under sub-section (4) of section 19 of the Recovery of Debts and Bankruptcy Act, 1993, read with sub-rule (2A) of rule 5 of the Debt Recovery Tribunal (Procedure) rules, 1993 from Debts Recovery Tribunal Delhi (DRT-1) dated 01/04/2022. The company submitted the written statement cum Counter claim dated May 17, 2022 before the Debts Recovery Tribunal Delhi (DRT-1) and the matter is pending before DRT -1. The company is in appeal before the Hon''ble Debts Recovery Appellate Tribunal, Delhi against the Interim Order of DRT-1.

Further, IFCI moved an insolvency application against the company under Corporate Insolvency Resolution Process (''CIRP'') on February 8, 2023 vide case number C.P (IB)- 86/2023 in NCLT-Delhi and same has been dismissed for want of prosecution vide order dated September 6, 2023.

Subsequently, the company has received notice under Rule8(6) r/w Rule 6(1) & 6(2) of Securities Interest (Enforcement) Rules, 2002 bearing IFCI/M&R/AHL/2023 dated 24.04.2023, stating that owing to consistent default to clear outstanding dues on part of the company IFCI shall be putting the secured assets under possession to auction as per Rule 9 of the Securities Interest (Enforcement) Rules, 2002 after the expiry of 30 days from receipt of said notice by any method as mentioned in Rule 8, in case the company failed to clear the outstanding dues amounting to Rs.15,204.53 Lakhs (as on 15.04.2023).

The company filed stay application for stay order against the aforesaid notice issued by IFCI in Hon''ble DRT and the same been listed & as per the order of the Hon''ble DRT dated June 2, 2023, the lender has submitted that they are not going to take action pursuant to the sale notice dated April 24, 2023.

The said portfolio was assigned to Suraksha ARC vide assignment agreement dated September 6, 2023, executed between the lender and Suraksha ARC.

The outstanding liability as per books of accounts as on March 31, 2024, is Rs 15,104.04 lakh (including interest) (Previous Year -Rs.13,258.28 Lakh) and default interest is shown under contingent liability amounting to Rs 2,684.33 Lakhs (Previous Year - Rs 1852.47 Lakh) which is pending confirmation from Suraksha ARC. Now, the company/holding company post assignment of the portfolio is in discussion with Suraksha ARC to resolve the matter in the best possible manner.

20.1 Working Capital Loans from Scheduled Banks are secured by charge over stocks of materials, unsold finished stock, construction work-in-progress, book-debts of the Company, Office premises at Indra Prakash Building (Lease hold building), Commercial Plot at Rewari, Unsold residential units at Lucknow, Unsold area and Corporate office at Ghaziabad (Freehold Building) and have been guaranteed by promoter director and Corporate Guarantee of Geo Connect Ltd. The rate of interest are as per the respective sanction letters.

20.2 Working Capital Loan from Bank referred above to the extent of:

Rs. 1,780.55 Lakh have been guaranteed by the promoter director (previous year- 1,429.41 Lakh)

Rs. 1,780.55 Lakh have been guaranteed by the subsidiary company. (previous year- 1429.41 Lakh)

20.3 Unsecured Loans referred above to the extent of:

Rs. 180.00 Lakh have been guaranteed by the promoter director (previous year- 200 Lakh)

21.2 Refer Note 46 for Trade payables which are going to be settled within 12 months from the reporting date & for information about liquidity risk and market risk.

21.3 Trade payables includes Rs. 1,892.22 Lakh (Previous year : Rs. 1,864.68 Lakh) payable to related parties.

22.1 The Other payables referred above includes Brokerage Provision, Customer Refund, payable to Associates Co. and Staff Imprest. Further Other Payable Includes Rs. 11.50 Lakh (Previous Year: Rs. 291.61 Lakh) payable to subsidiary company and Rs. 788.83 Lakh (Previous Year: Rs. 1020.74 Lakh) payable to other related parties.

22.2 Further Security Deposit includes Rs. 125.00 Lakh (Previous Year Rs.125.00 Lakh) payable to subsidiary Company.

22.3 Refer Note 46 for other financial liabilities which are going to be settled within 12 months from the reporting date & for information about liquidity risk and market risk.

24.1 The Advances from Customers referred above includes Rs 1427.21.(Previous Year: Rs.200.51 Lakh) received from subsidiary Companies and Rs.55.04 Lakh (Previous Year: Rs. 395.70 Lakh ) from other related parties.

24.2 Advances from customers are against sale of real estate projects and generally are not refundable except in the case of cancellation of bookings.

Disaggregate Revenue Information

The table below represents disaggregated revenues from contracts with customers for the year ended March 31,2024 & March 31, 2023 by offering and contract type. The company believes that this disaggregation best depicts how the nature, amount, timing and uncertainty of our revenues and cash flows are affected by industry, market and economic factors.

Contract assets are initially recognized for revenue earned on account of contracts where revenue is recognized over the period of time as receipt of consideration is conditional on successful completion of performance obligations as per contract. Once the performance obligation is fulfilled and milestones for invoicing are achieved, contract assets are classified to trade receivables.

Contract liabilities include amount received from customers as per the instalments stipulated in the buyer agreement to deliver properties once the properties are completed and control is transferred to customers.

NOTE 32 : EXCEPTIONAL ITEM

The company ("Borrower/ Developer”) received notice under Sec 13(2) of the Securitisation and Reconstructions of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002 from India bulls Asset Reconstruction Company Limited ("Lender”) demanding full repayment of Rs. 17,508 Lakh (including interest till 05.04.2019). Further, the company had received notice u/s 13(4) of the SARFASAI Act, 2002 where India bulls Asset Reconstruction Company Limited (IBARC) had taken over the symbolic possession on August 5, 2019 of certain mortgaged properties. Additionally, the company received letter dated May 26, 2021 from Assets Care and Reconstruction Enterprise Limited ("ACRE/Lender”) (Acting in its capacity as Trustee of ACRE-102-Trust) regarding the assignment of the entire debt/facility from IBARC to ACRE.

Subsequently during the previous quarter ended September 2022, upon the request of the borrower, the lender is agreeable to accept

payment from the borrower of the following cash flows towards full and final settlement against all the outstanding dues in the lender''s

books of accounts pertaining to the loan agreements executed between the parties vide letter dated September 13, 2022.

(i) An amount of Rs. 6,500.00 Lakh, which is to be paid on or before the execution of the sale deed with the proposed buyer in connection with the sale of the immovable property of project named Ansal Amantre (hereinafter referred to as Project).

(ii) Expected estimated cash flow of Rs.1,384.00 Lakh from the sale of 15 units in the Ansal Highland Project on which the lender has an exclusive charge.

(iii) Any remaining surplus from Ansal Highland Park Project, post-debt servicing and exit of SWAMIH Loan which as on today is estimated to be approximate Rs. 1,531.00 Lakh.

In order to comply with the terms of the letter, the following agreements/action has been taken:

- An extinguishment agreement dated October 14, 2022 was entered between the Oriane Developers Pvt. Ltd. (Landowner) and Ansal Housing Limited (Developer) to invoke and extinguish all the rights of the developer under the Joint Development Agreement dated November 27, 2013 (JDA) for consideration of Rs.9,800.00 Lakh.

- An agreement to sell dated September 17, 2022 read with the addendum was executed for total sale consideration of Rs.11,332.44 Lakh against the sale and transfer of all legal rights and obligations relating to the said project. The stipulations/ conditions as mentioned in all the above agreements/letters have been duly complied with (as applicable) and subsequently, sale deed has been executed on October 20, 2022.

The company has taken the impact of the above agreement/settlement/letter in the financial statements for the year ended March 31, 2023

as an exceptional item as explained hereunder:

(a) The outstanding liability as appearing in books on the letter date amounts to Rs. 20,937.31 Lakh (including interest). Based on the aforesaid letter, the outstanding loan is settled at Rs 9,415.00 Lakh and accordingly the remaining amount of Rs. 11,175.91 Lakh (net of interest reversal amounting to Rs.346.40 Lakh) for the year ended March 31, 2023, had been written back in the books of the company and recognized as exceptional gain.

(b) With regard to aforesaid terms, Development rights in relation to the Inventory (WIP) having a book value of Rs.26,141.79 Lakh have been transferred for a consideration amounting Rs.9,800.00 Lakh. This transaction resulted into an exceptional loss on the transfer of rights amounting to Rs.16,341.79 Lakh for the year ended March 31, 2023, in the Standalone Financial Statements.

(c) After the aforesaid events, the subsidiary company (Oriane Developer Private Limited) does not have enough assets to redeem the investment. Accordingly, impairment loss on investment has been recognized amounting Rs. 500.25 Lakh for the year ended March 31, 2023, in the Standalone Financial Results.

(d) During the year ended March 31, 2024, the company has obtained a benefit of Rs. 235.21 Lakhs on adoption of ''Haryana One Time Settlement'' scheme issued by the Government of Haryana and on adoption of ''Punjab One Time Settlement'' scheme issued by the Government of Punjab.Additionally, the company has written back the excess provision of Rs. 314.04 Lakhs on account of litigation being settled in favour of the company.

(e) The company has done an investment of Rs. 501.59 Lakhs (including an advance of Rs. 9.92 Lakhs) in Housing Construction & Lanka Private Limited (a wholly-owned subsidiary company in Sri Lanka referred to as ''subsidiary company'') by way of equity shares. The BOI has terminated the agreements for the development of an integrated township in Sri Lanka between the subsidiary and the BOI. The subsidiary company had filed an arbitration claim against the Board of Investment of Sri Lanka (BOI). The said arbitration case has been settled. Consequently, the subsidiary company does not have enough assets to redeem the investment made by the company. Accordingly, an impairment loss on investment has been recognized amounting to Rs. 501.59 Lakhs.

NOTE 33 : CONTINGENT LIABILITIES AND COMMITMENTS (TO THE EXTENT NOT PROVIDED FOR)		(Rupees in Lakh)
Particulars	As at March 31, 2024	As at March 31, 2023
33.1 Contingent Liabilities
i) Guarantees
- Guarantees given by the Company to Banks/Financial Institutions against credit facilities extended to third parties. (to the extent of outstanding Loan amount)	8,200.00	7,700.00
ii) Claims against the Company not acknowledged as Debts
- Income Tax/ Wealth Tax demand being disputed by the Company [refer note (a) below]	2,227.49	2,093.10
- Sales Tax demand being disputed by the Company [refer note (b) below]	340.10	1,189.24
- Stamp Duty demand being disputed by the Company [refer note (c) below]	586.51	586.51
- Claims by customers for refund of amount deposited/ Compensation/ Interest (to the extent quantifiable)	11,929.09	10,549.75
- Other Claims against the Company not acknowledged as debts -(Refer Note 16.6)	2,684.33	1,852.47
	25,885.40	23,971.06

a) In respect of certain assessment years upto 2006-07, the Delhi High Court has allowed the appeal of the Income Tax Department filed against the order of the Income Tax Appellate Tribunal, New Delhi, holding that the Notional Annual Letting Value of Flats/Commercial spaces etc. lying unsold in the closing stock is liable to tax under the head ''Income from House Property''. Based on the High Court Order, the tax department has created a demand of Rs.1261.59 Lakh (Previous Year: Rs. 1261.59 Lakh) against the Company. The Company has filed special leave petition before the Supreme Court against the addition of Rs. 1080.77 Lakhs (Previous Year Rs 1080.77 Lakh) by virtue of the order of the Delhi High Court which has been admitted by the Supreme Court and for the balance Rs 180.82 Lakhs (Previous Year Rs 180.82 Lakhs) the company has moved appeals which are pending before the ITAT/CIT. A further liability of Rs.360.42 Lakh (Previous Year: Rs.360.42 Lakh) is estimated in respect of cases where the department has gone into appeal which are pending before the ITAT/High Court. Further in respect of certain assessment years the company/department has gone into appeals on various matters at different forums for an amount of Rs.750.31 Lakhs (Previous Year Rs. 831.51 Lakhs).

b) In respect of certain assessment years, Sales tax authorities have held that construction of properties by developer/ builder is liable to sales tax / VAT and have raised a demand of Rs.340.10 Lakh (Previous Year: Rs.1189.24 Lakh) against the Company which are being disputed by the Company before the appellate authorities. Against these demands, the Company has paid Rs.160.12 Lakh (Previous Year: Rs.160.12 Lakh) under protest and the balance demand has been stayed by the authorities. The management is of the view that in case the Company becomes liable to pay sales tax /VAT, the same will be recovered from the customers to whom these properties have been sold and there is no contingent liability in this respect. The Company has started collecting VAT from Customers on provisional basis.

c) The Revenue Authorities of different states have raised demands of Rs.586.51 Lakh (Previous Year: Rs586.51 Lakh) towards deficiency in Stamp Duty on purchase of land / registration of agreements. Against these demands, the Company has paid Rs.251.53 Lakh (Previous Year: Rs.251.53 Lakh) under protest and the balance demand has been stayed by the appellate authorities. Pending final decision in the matter, no provision has been considered necessary.

In respect of various claims against the Company disclosed above, it has been advised that it has a reasonably good case to succeed at various appellate authorities and hence does not expect any material liability when the cases are finally decided.

d) Commissioner of income tax has issued a notice to the company for TDS demand amounting to Rs 215.59 Lakhs (Previous Year - Rs.70.40 Lakhs) in respect of non deduction of TDS on expenses incurred by the company like external development charges ,brokerage etc. The same has been disputed by the company against the commissioner of income tax at CIT(Appeals). Pending final decision in the matter, management is of the view that the company has good chances of getting the matter decided in its favour and hence no provisioning in respect of the said matter has been done in the books of accounts.

iii) In respect of block assessment for the period 01 April 1989 to 10 February 2000, Income Tax Appealet Tribunal (ITAT) has given full relief to the company and rejected departments ground of appeal for tax claim of Rs. 127.07 Lakhs (Previous Year: Rs.127.07 Lakh). Further, in respect of assessment of certain years, demands had been raised by the Income Tax Department against the Company amounting to Rs.564.64 Lakh (Previous Year: Rs.564.64 Lakh) approx. by disallowing deduction under section 80(IB) of the Income Tax Act, 1961 and other matters. The appeal filed by the Company have been decided in its favour by CIT (Appeals) / ITAT / High Court. The tax department has gone for further reference in the above matters to ITAT/High Court/Supreme Court. The Management has been advised that it has a good case to succeed and no tax liability is likely to be arise in these cases.

iv) Due to depressed market conditions, in some of the cases sale consideration received on sale of plots / flats/ apartments is lower than the value adopted or assessed by the regulatory authorities for the purpose of payment of stamp duty (circle rate) and could attract the provisions of section 43CA of the Income Tax Act, 1961. For the year Assessment Year 2014-15, 2015-16, 2016-17 & 2017-18 the assessing officer has added the difference between sale consideration and circle rates to the income of the Company and created additional demand of Rs.1268.55 Lakh (Previous Year: Rs.1268.55 Lakh), out of the mentioned demand, demand of Rs 981.07 (Previous year Rs 981.07 Lakhs) has been contested by the company and Rs 287.48 Lakhs (Previous Year Rs 287.48 Lakhs) has been contested by department. The Company has opted to refer the matter to Valuation Cell of the Income Tax Department for assessing the fair value of the properties sold. The final tax liability under section 43CA can not be ascertained at this stage as the Income Tax Department has not completed the valuation exercise. Such dispute is likely to arise for the subsequent financial years also.

v) During the financial year 2021-22, the assessment for assessment year 2013-14 was reopened by issue of notice u/s 148 of Income Tax Act. The assessment in this case was completed u/s 143(3) read with section 147 and a demand of Rs.2,643.39 Llakh (including interest) (Previous year 2852.55 Lakh) has been raised by the Income Tax Department. The assessee company preferred an appeal before Hon''ble CIT (A) against additions made by order u/s 143(3)/ 147. The assessee raised several grounds of appeal and is very hopeful of getting full relief under appeal.

vi) There has been a Supreme Court (SC) judgement dated February 28, 2019, relating to components of salary structure that need to be taken into account while computing the contribution to provident fund under the EPF Act. There are interpretative aspects related to the Judgement including the effective date of application. Pending decision on the subject review petition and directions from the EPFO, the impact for the past period, if any, was not ascertainable and consequently no effect was given in the books of accounts.

33.2 Due to unascertainable outcome for pending litigation matters with Court/Appellate Authorities, the company''s management expects no material adjustments on the standalone financial statements. Further, the company may be liable to pay damages/ interest for specific non- performance of certain real estate agreements, civil cases preferred against the Company for specific performance of the land agreement. The actual liability on account of these may differ from the provisions already created in the books of accounts and disclosed as contingent liability.

33.3 Capital and Other Commitments

i) Estimated amount of contracts remaining to be executed on capital account (net of advances) and not provided for Rs. NIL (Previous year Rs NIL)

ii) The Company has entered into joint development agreements with owners of land for its construction and development. As stipulated under the agreements, the Company is required to share in area/ revenue from such development in exchange of undivided share in land as stipulated under the agreements. As on March 31,2024 the Company has paid Rs. 5,723.37 Lakh (Previous Year: Rs. 6,542.95 Lakh) as deposits/ advances against the joint development agreements. Further, the Company has given advances for purchase of land. Under the agreements executed with the land owners, the Company is required to make further payments based on terms/ milestones stipulated in the agreement.

34 The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on Long term contracts. Further the company did not have any derivative contracts.

35 There have been no delays in transferring amounts required to be transferred to the Investor Education and Protection Fund.

36 The Company has no outstanding derivative or foreign currency exposure as at the end of the current year and previous year.

37 Inventory of Land includes Rs.652.34 Lakh (Previous Year: Rs 652.34 Lakh) acquired by subsidiary companies/ others. The land is registered in the name of the subsidiary companies/ others but is under the possession and control of the Company for development and sale of Real Estate Projects in terms of collaboration agreement with these companies.

38 Based on the guiding principles given in Ind AS -108 "Operating Segment”, the Company is mainly engaged in the business of real estate development viz. construction of residential/commercial properties. As the Company''s business actually falls within a single segment, the disclosure requirement of Ind AS - 108 in this regard is not applicable.

41 The Company has opted for ''composition scheme'' notified by the State of Haryana with effect from 1st April, 2014 under which VAT is payable at compounded lumpsum rate of 1% plus surcharge of 5%. Under the scheme, the Company is debarred from recovering the VAT paid from the customers. During the year ended March 31, 2024, the company has adopted ''Haryana One Time Settlement'' scheme issued by the Government of Haryana as a result of which the company is no longer required to repay the outstanding balance of VAT payable under the composition scheme for the period April 1, 2014 to June 30, 2017 amounting to Rs 235.02 lakhs (Previous year Rs.235.02 Lakh)

44 The disclosures of Employee Benefits as defined in Indian Accounting Standard 19 are given below:

A. Defined Benefit Plan

i) Gratuity: The employees'' gratuity fund scheme is a defined benefit plan. The Company provides gratuity for employees in India as per the Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of 5 years are eligible for gratuity. the amount of gratuity payable on retirement/termination is the employees'' last drawn basic salary per month computed proportionately for 15 days salary multiplied by the number of years of service. The scheme is funded with an insurance company in the form of a qualifying insurance policy through the trustees of the trust. The present value of the obligation is determined on the basis of year end actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

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

X Risk Exposure

These plans typically expose the Company to actuarial risks such as

- Interest Rate Risk : the defined benefit obligation calculated uses a discount rate based on government bonds. If bond yields fall, the defined benefit obligation will tend to increase.

- Salary Inflation risk : higher than expected increases in salary will increase the defined benefit obligation.

- Demographic risks : this is the risk of volatility of results due to unexpected nature of decrements that include mortality attrition, disability and retirement. The effects of these decrement on the DBO depends upon the combination salary increase, discount rate, and vesting criteria and therefore not very straight forward. It is important not to overstate withdrawal rate because the cost of retirement benefit of a short caring employees will be less compared to long service employees.

- Asset Liability Mismatch : This will come into play unless the funds are invested with a term of the assets replicating the term of the liability.

- Investment Risk : For funded plans that rely on insurers for managing the assets, the value of assets certified by the insurer may not be the fair value of instruments backing the liability. In such cases, the present value of the assets is independent of the future discount rate. This can result in wide fluctuations in the net liability or the funded status if there are significant changes in the discount rate during the inter-valuation period.

- Liquidity Risk : Employees with high salaries and long durations or those higher in hierarchy, accumulate significant level of benefits. If some of such employees resign / retire from the company there can be strain on the cash flows.

- Legislative Risk/Regulatory Risk : Legislative risk is the risk of increase in the plan liabilities or reduction in the plan assets due to change in the legislation / regulation. The government may amend the Payment of Gratuity Act thus requiring the companies to pay higher benefits to the employees. This will directly affect the present value of the Defined Benefit Obligation and the same will have to be recognized immediately in the year when any such amendment is effective.

XI Leave Encashment

The leave obligations cover the Company''s liability for earned leaves. The amount of provision of Rs.24.15 Lakh (Previous Year: Rs.14.44 Lakh) is presented as current, since the Company does not have an unconditional right to defer settlement for any of these obligations. However, based on past experience, the Company does not expect all employees to take the full amount of accrued leave or require payment within the next 12 months, therefore based on the independent actuarial report, only a certain amount of provision has been presented as current and remaining as non-current. The amount debited/ (recognized) for the year is:

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

B. Defined Contribution Plan

The Company makes provident fund contribution to defined contribution retirement benefit plan for its employees. Under the scheme, the company deposits an amount determined as a specified percentage of basic pay with the regional provident fund commissioner. Contribution to defined contribution plan recognized as expense for the year is Rs.57.00 Lakh (Previous Year: Rs.49.51 Lakh).

Note: For details of securities owned by the related parties which have been mortgaged by the company, refer Note 16 of the financial statements.

Note: All transactions with related parties are made on terms equivalent to those that prevail in arm''s length transactions. Outstanding balances at the year end are unsecured. For the year ended March 31, 2024, the Company has recorded a provision of impairment of receivables of Rs. 501.59 lakhs from related parties (March 31, 2023- Rs.500.25 lakhs).

(ii) Fair value hierarchy

The fair value of financial instruments have been classified into three categories depending on the input used in the valuation technique. The categories used are as follow:

Level 1: Quoted prices for identical instruments in an active market

Level 2: Directly or indirectly observable market input, other than Level 1 inputs

Level 3: Inputs which are not based on observable market date

(iii) Valuation techniques used to determine fair value.

Specific valuation technique used to value financial instruments includes:

(a) the use of net asset value(NAV) for mutual funds on the basis of the statement received from investee party.

(b) the use of adjusted net asset value method for certain equity investments because the amount of investment is not material and management is not expected significant changes in fair value of investment.

B Financial Risk Management

The Company''s business operations are exposed to various financial risks such as liquidity risk, market risks, credit risk, interest rate risk, funding risk etc. The Company''s financial liabilities mainly includes borrowings taken for the purpose of financing company''s operations, trade payable and other financial liabilities. Financial assets mainly includes trade receivables, unbilled revenue, investment in subsidiaries/associates, loans, security deposit etc. the company is not exposed to foreign currency risk and the company have not obtained entered in forward contracts and derivative transactions.

The Company has a system based approach to financial risk management. The Company has internally instituted an integrated financial risk management framework comprising identification of financial risks and creation of risk management structure. The financial risks are identified, measured and managed in accordance with the Company''s policies on risk management. Key financial risks and mitigation plans are reviewed by the board of directors of the Company.

I Liquidity Risk

Liquidity risk is the risk that the Company may face to meet its obligations for financial liabilities. The objective of liquidity risk management is that the Company has sufficient funds to meet its liabilities when due. However, presently the Company is under stressed conditions, which has resulted in delays in meeting its liabilities. The Company, regularly monitors the cash outflow projections and arrange funds to meet its liabilities.

II Market risk

Market risk is the risk that future cash flows will fluctuate due to changes in market prices i.e. interest rate risk and price risk. a. Interest rate risk

Interest rate risk is the risk that the future cash flows will fluctuate due to changes in market interest rates. The Company is mainly exposed to the interest rate risk due to its borrowings. The Company manages its interest rate risk by having balanced portfolio of fixed and variable rate borrowings. The Company does not enter into any interest rate swaps.

b. Price risk

The Company has very limited exposure to price sensitive securities, hence price risk is not material.

III Credit Risk

Credit risk is the risk that customer or counter-party will not meet its obligation under the contract, leading to financial loss. The Company is exposed to credit risk for receivables from its real estate customers and refundable security deposits.

Customers credit risk is managed, generally by receipt of sale consideration before handing over of possession and/or transfer of legal ownership rights. The Company credit risk with respect to customers is diversified due to large number of real estate projects with different customers spread over different geographies.

Based on prior experience and an assessment of the current receivables and unbilled revenue, the management believes that there is no credit risk and accordingly no provision is required. The ageing of trade receivables and unbilled revenue is as below:

Loans to related parties and project deposits

The company has loans to related parties and project deposits. The settlements of such instruments is linked to the completion of the respective underlying projects. Such financial assets are not impaired as on the reporting date.

Cash and Bank Balances

Credit risk from cash and bank balances is managed by the company''s finance department in accordance with the company''s policy 47 Capital Management

For the purpose of capital management, capital includes equity capital, share premium and all other equity reserves attributable to equity shareholders of the company.

The company''s capital management objectives are:

(a) to ensure the company''s ability to continue as a going concern

(b) to provide an adequate return to shareholdersby controlling the prices in relation to the level of risk

The company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirement of financial covenants. The Company maintains balance between debt and equity. The Company monitors its capital management by using a debt-equity ratio, which is total debt divided by total capital.

iii The company has recognised deferred tax assets on its unabsorbed depreciation and business losses carried forward. The Company has executed flat/plot sale agreements with the customers against which advances have been received and the same are disclosed as part of Note 24 of the financial statements. Revenue not offered under Income Tax Act in respect of such executed sale agreements will get recognised in future years as per the accounting policy of the company. Based on this, the company has reasonable certainty as on the date of the balance sheet, that there will be sufficient taxable income available to realize such assets in the near future.

iv The company recognises deferred tax asset on margins in respect of projects where revenue recognition has been reversed/ deferred on account of adoption of Ind AS 115 (refer note 51). Out of reversal/ deferrment till date, during financial year 202324, there is reversal of deferred tax asset on booking of margin of Rs 7,595.60 Lakh (Previous Year: Rs 1,068.38 Lakh ) under Income Tax Act,1961. The net deferred asset as on March 31, 2024 on the same is Rs 3,036.26 Lakh (Previous Year Rs 5,149.36 Lakh). The deferred tax asset will be recovered as and when such margin will be recycled to statement of profit and loss. The Company believes there is reasonable certainty of recovery of such deferred tax asset as margin reversed will be recognised in subsequent periods as and when revenue will be recorded based on transfer of control.

Further on the application of Ind AS-115 on April 1, 2018 the company had reversed net profits of Rs. 17,801.78 Lakhs and accordingly deferred tax assets on Rs. 4,952.44 Lakhs was recognised (refer note 51). Out of this, till March 31,2024, the company has recognised net profits of Rs. 7,543.19 Lakh (Previous Year Rs. 2,185.83 Lakh) and deferred tax asset of Rs.2,098.52 Lakh (Previous Year Rs. 608.10 Lakh) has been reversed .

Further, in addition to the above the company has recognised deferred tax asset of Rs. 385.55 Lakh (Previous Year Rs. 805.02 Lakh) on the net profits of such projects which have not been recognised since they haven''t fulfilled the revenue recognition criteria of the company as on March 31,2024 but the net profits on such projects have been offered to tax under Income Tax Act, 1961.

v Provision for tax for the year ended March 31, 2024 is only provisional and it is subject to change at the time of filing Income Tax Return based on actual addtion/dedcution as per provisions of Income Tax Act, 1961.

50.1 The company made an Investment in Shamiya Automobiles Pvt. Ltd.. During the F.Y. 2018-19, the company passed a resolution in the Board meeting dated 29th May 2018 to sold out the investment. In previous year 2022-23, the intent of the company to sale the investment has been changed so it has been reclassified in investment in subsidiaries.

51 Impact of application of Ind AS 115 Revenue from Contracts with Customers

The Ministry of Corporate Affairs vide notification dated 28th March 2018 has made Ind AS 115 "Revenue from Contracts with Customers” (Ind AS 115) w.e.f. 1 st April, 2018. The Company has applied the modified retrospective approach as per para C3(b) of Ind AS 115 to contracts that were not completed as on 1st April 2018 and the cumulative effect of applying this standard is recognised at the date of initial application i.e.1 st April, 2018 in accordance with para C7 of Ind AS 115 as an adjustment to the opening balance of General Reserve, only to contracts that were not completed as at 1st April, 2018. The transitional adjustment of Rs. 12,849.33 lakh (net of deferred tax) has been adjusted against opening General Reserve based on the requirements of the Ind AS 115 pertaining to recognition of revenue based on satisfaction of performance obligation.

52 Balance Confirmation of certain outstanding balances

The Company has a system of obtaining periodic confirmation of balances from banks, trade receivables/payables and other parties (other than disputed parties). The balance confirmation letters as referred in the Standard on Auditing (SA) 505 (Revised) ''External Confirmations'', were sent to banks and parties and certain party''s balances are subject to confirmation/reconciliation. Adjustments, if

any will be accounted for on confirmation/reconciliation of the same, which in the opinion of the management will not have a material impact.

53 The company is in collaboration with Samyak Projects Private Limited ("Samyak'''') for developing a project at Ansal Hub 83—II (Ansal Boulevard), Gurugram. Samyak took an Inter Corporate Deposit of Rs 2,500 Lakh from the company to make the payment related to the project under a collaboration and failed to discharge its obligations for the repayment. The company has approached the NCLT for initiation of the Corporate Insolvency Resolution Process (CIRP) which has been dismissed by the Hon''ble NCLT vide order dated February 28, 2023. Against the said order the company has filed an appeal in Hon''ble National Company Law Appellate Tribunal (NCLAT) which was disposed off stating that the company has the liberty to exhaust other remedies before any other appropriate forum. Consequently, the company, knocked the door of the Hon''ble Supreme Court wherein, vide order dated 12th March,2024, the Hon''ble Supreme Court also upheld the order of the NCLAT. Presently the company is in the process of filing civil suit for recovery and the management is of the view that the full amount of Rs. 5,795.20 Lakhs (including accrued interest till 31.03.2020) is recoverable from the party and hence no provision for the same has been made in the books of accounts. Further company has not recognized the interest income amounting to Rs. 3,942.71 Lakhs and Rs. 3,011.68 Lakhs for the year ended March 31, 2024 and March 31, 2023 respectively due to the uncertainty of the realization of income as per Ind AS 115, "Revenue from Contract with Customer”.

Also, the Company is in collaboration with Samyak Projects Private Limited ("Samyak”) for developing a project at Ansal Hub 83-II (Ansal Boulevard), Gurugram.The said project is subject to execution as per terms and condition of Interim Arbitration award dated August 31 ,2021 . The project is having book value as on March 31, 2024 Rs. 13,776.39 Lakh (Previous year Rs13,709.14 Lakh).

54 The company is in due compliance with the provisions of the Real Estate Regulation Act ("act”) and there is no material financial impact of the provisions of the said act on the financial statements of the company.

56 OTHER STATUTORY INFORMATION:

i. No proceedings have been initiated on or are pending against the company for holding Benami property under the Prohibition of Benami Property Transaction Act 1988 (as amended in 2016) (formally the Benami Transactions (Prohibition) Act 1988 (45 of 1988) and Rules made thereunder during the year ended March 31, 2024, and March 31 2023.

iv During the year ended March 31, 2024 and March 31, 2023, the company has not advanced or loaned or invested funds (either borrowed funds or the share premium or kind of funds) to any other person or entities, including foreign entities (Intermediaries) with the understanding (whether recorded in writing or otherwise) that the intermediary shall:

a. directly or indirectly land 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.

v During the year ended March 31,2024 and March 31, 2023, the company has not received any funds from any persons or entities 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.

vi During the year ended March 31, 2024 and March 31,2023, the Company have no such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

vii The company complies with the number of layers of companies in accordance with clause 87 of Section 2 of the Act read with the Companies (Restriction on number of layers) rules 2017 during the year ended March 31, 2024 and March 31, 2023.

viii The company has not been declared a wilful defaulter by any bank or financial institution or government or any government authorities during the year ended March 31, 2024 and March 31, 2023.

ix The company has not entered into any scheme of arrangement approved by the competent authority in terms of sections 232 to 237 of the Companies Act 2013 during the year ended March 31, 2024 and March 31, 2023.

x The Company has filed all the required quarterly return statements of currents assets with the bank as per covenants of the Sanction of Working Capital Limit which are in agreement with the books of accounts and there are no material discrepancies in the same.

57 The company has a comprehensive system of maintenance of information and documents as required by the Goods and Services Act("GST Act”). Since the GST Act requires existence of such information and documentation to be contemporaneous in nature, books of accounts of the company are also subject to filing of GST Annual Return as per applicable provisions of GST Act to determine whether the all transactions have been duly recorded and reconcile with the GST Portal. Adjustments, if any, arising while filing the GST Annual Return shall be accounted for as and when the return is filed for the current financial year. However, the management is of the opinion that the aforesaid annual return will not have any material impact on the financial statements.

58 The Code on Social Security, 2020 (''Code'') relating to employee benefits during employment and post-employment benefits has received Presidential assent on September 28, 2020. The Code has been published in the Gazette of India. However, the effective date of the Code is yet to be notified and final rules for quantifying the financial impact are also yet to be issued. In view of this, the Company will assess the impact of the Code when relevant provisions are notified and will record related impact, if any, in the period the Code becomes effective.

61 The net recoverable value of advances/security deposits paid by company for acquisition of land/project development is based on the management''s estimates and internal documentation, which include, among other things, the likelihood when the land acquisition would be completed, the expected date of plan approvals for commencement of project, expected date of completion of project and the estimation of sale prices and construction costs. Due to the significance of the balance to the financial statements as a whole and the involvement of estimates and judgement in the assessment which is being technical in nature, the management is of the opinion that entire amount is recoverable/adjustable against the land procurement/amount payable to collaborator under collaboration agreement and hence no provision is required at this stage.

62 The Company is not expecting to complete the project within the operating cycle for the project land situated at Panchkula and accordingly all associated assets and liabilities has been classified as non current.

63 Approval of the financial statements

The financial statements were approved for issue by Board of Directors on May 29, 2024.

64 Notes 1 to 64 form an integral part of the standalone financial statements as at March 31, 2024.

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Mar 31, 2023

1.6 PROVISIONS

A provision is recognized if, as a result of a past event, the Company has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period taking into account the risk and uncertainties surrounding the obligation.

When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.

1.7 CONTINGENT LIABILITIES AND ONEROUS CONTRACTS

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is not recognised because it is not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount cannot be made. The Company does not recognise a contingent liability, but discloses its existence in the financial statements.

Present obligations arising under onerous contracts are recognised and measured as provisions. An onerous contract is considered to exist where the Company has a contract under which the unavoidable costs of meeting the obligations under the contract exceed the economic benefits expected to be received from the contract.

1.8 FOREIGN CURRENCY

These financial statements are presented in Indian rupees (''Rs.'' or ''INR''), which is the functional currency of the Company.

Transactions in foreign currencies are recorded at the exchange rate prevailing on the date of transaction. Foreign currency denominated monetary assets and liabilities are re-measured into the functional currency at the exchange rate prevailing on the balance sheet date.

Exchange differences on monetary items are recognised in profit or loss in the period in which they arise.

1.8a Since the figures are reported in lakh in financial statement, there could be casting differences on account of rounding off.

1.9 INCOME TAXES

- Income tax expense comprises current and deferred taxes. Income tax expense is recognized in the Statement of Profit and Loss except when they relate to items that are recognised outside profit or loss (whether in other comprehensive income or directly in equity), in which case tax is also recognised outside profit or loss.

- Current income taxes are determined based on respective taxable income of each taxable entity.

- Deferred tax assets and liabilities are recognized for the future tax consequences of temporary differences between the carrying values of assets and liabilities and their respective tax bases, and unutilized business loss and depreciation carry-forwards and tax credits. Such deferred tax assets and liabilities are computed separately for each taxable entity. Deferred tax assets are recognized to the extent that it is probable that future taxable income will be available against which the deductible temporary differences, unused tax losses, depreciation carry-forwards and unused tax credits could be utilized.

- Deferred tax assets and liabilities are measured based on the tax rates that are expected to apply in the period when the asset is realized or the liability is settled, based on tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation authority and the Company intends to settle its current tax assets and liabilities on a net basis.

- Current and deferred tax are recognised in profit or loss, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognised in other comprehensive income or directly in equity respectively.

- Minimum Alternate Tax (MAT) is payable when the taxable profit is lower than the book profit. Taxes paid under MAT are available as a set off against regular income tax payable in subsequent years. MAT paid in a year is charged to the Statement of Profit and Loss as current tax. The Company recognizes MAT credit available as an asset only to the extent that there is convincing evidence that the Company will pay normal income tax during the specified period i.e. the period for which MAT credit is allowed to be carried forward. MAT credit is recognised as an asset and is shown as ''MAT Credit Entitlement''. The Company reviews the ''MAT Credit Entitlement'' asset at each reporting date and write down the asset to the extent the Company does not have convincing evidence that it will pay normal tax during the specified period.

1.10 EARNINGS PER SHARE

Basic earnings per share has been computed by dividing profit/loss for the year by the weighted average number of shares outstanding during the year. Partly paid up shares are included as fully paid equivalents according to the fraction paid up. Diluted earnings per share has been computed using the weighted average number of shares and dilutive potential shares, except where the result would be anti-dilutive.

1.11 INVENTORIES

Inventories are valued as under :

a) Building Material, Stores, Spares parts etc. At lower of cost (using FIFO method) or net realizable value.

b) Food, Beverage and related stores At lower of cost (using FIFO method) or net realizable value.

c) Completed Units (Unsold) At lower of cost or net realizable value.

d) Land At lower of cost or net realizable value.

e) Project/Contracts work in progress At lower of cost or net realizable value.

Cost of Completed units and project/ work in progress includes cost of land , construction/development cost and other related costs incurred .

Net Realizable value is the estimated selling price in the ordinary course of business less estimated costs of completion and estimated costs necessary to make the sale.

1.12 PROPERTY, PLANT AND EQUIPMENT

- Property, plant and equipment are stated at cost of acquisition or construction less accumulated depreciation less accumulated impairment, if any. The cost comprises purchase price, directly attributable cost for making the assets ready for intended use, borrowing cost attributable to construction of qualifying assets, upto the date the assets is ready for its intended use. Freehold land is measured at cost and is not depreciated.

- Interest cost incurred for constructed assets is capitalized up to the date the asset is ready for its intended use, based on borrowings incurred specifically for financing the asset or the weighted average rate of all other borrowings, if no specific borrowings have been incurred for the asset.

- Depreciation is provided on the Straight Line Method (SLM) over the estimated useful lives of the assets considering the nature, estimated usage, operating conditions, past history of replacement, anticipated technological changes, manufacturers warranties and maintenance support. Taking into account these factors, the Company has decided to apply the useful life for various categories of property, plant & equipment, which are as prescribed in Schedule II of the Act. Estimated useful lives of assets are as follows:

Type of Asset Useful Life in years

a) Buildings - Other than Factory buildings 30

b) Plant and Equipment 15

c) Office equipment 5

d) Furniture and fixtures 10

e) Vehicles 8-10

f) Computers and data processing units

- Servers and networks 6

- End user devices, such as, desktops, laptops, etc. 3

- The useful lives is reviewed at least at each year end. Changes in expected useful lives are treated as change in accounting estimate.

- Leased assets and leasehold improvements are amortized over the period of the lease or the estimated useful life whichever is lower.

- Assets held under finance leases are depreciated over their expected useful lives on the same basis as owned assets or, where shorter, the term of the relevant lease.

- Depreciation is not recorded on capital work-in-progress until construction and installation are complete and the asset is ready for its intended use.

The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial year end and adjusted prospectively, if appropriate.

1.13 LEASES

Where the company is the lessee Right of use assets and lease liabilities

- For any new contracts entered into on or after 1 April, 2019, (the transition approach has been explained and disclosed in Note 47) the Company considers whether a contract is, or contains a lease. A lease is defined as ''a contract, or part of a contract, that conveys the right to use an asset (the underlying asset) for a period of time in exchange for consideration

- Classification of lease

The Company enters into leasing arrangements for various assets. The assessment of the lease is based on several factors, including, but not limited to, transfer of ownership of leased asset at end of lease term, lessee''s option to extend/purchase etc.

- Recognition and initial measurement

At lease commencement date, the Company recognizes a right-of-use asset and a lease liability on the balance sheet. The right-of-use asset is measured at cost, which is made up of the initial measurement of the lease liability, any initial direct costs incurred by the Company, an estimate of any costs to dismantle and remove the asset at the end of the lease (if any), and any lease payments made in advance of the lease commencement date (net of any incentives received).

- Subsequent measurement

The Company depreciates the right-of-use assets on a straight-line basis from the lease commencement date to the earlier of the end of the useful life of the right-of use asset or the end of the lease term. The Company also assesses the right-of-use asset for impairment when such indicators exist.

At lease commencement date, the Company measures the lease liability at the present value of the lease payments unpaid at that date, discounted using the interest rate implicit in the lease if that rate is readily available or the Company''s incremental borrowing rate. Lease payments included in the measurement of the lease liability are made up of fixed payments (including in substance fixed payments) and variable payments based on an index or rate. Subsequent to initial measurement, the liability will be reduced for payments made and increased for interest. It is re-measured to reflect any reassessment or modification, or if there are changes in substance fixed payments. When the lease liability is re-measured, the corresponding adjustment is reflected in the right-of-use asset.

The Company has elected to account for short-term leases and leases of low-value assets using the practical expedients. Instead of recognizing a right-of-use asset and lease liability, the payments in relation to these are recognized as an expense in standalone statement of profit and loss on a straight-line basis over the lease term.

Where the company is the lessor

- Leases in which the Company does not transfer substantially all the risks and rewards of ownership of an asset are classified as operating leases. Rental income from operating lease is recognized on a straight-line basis over the term of the relevant lease, except when the lease rentals, increase are in line with general inflation index. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognized over the lease term on the same basis as rental income. Contingent rents are recognized as revenue in the period in which they are earned.

- Leases are classified as finance leases when substantially all of the risks and rewards of ownership transfer from the Company to the lessee. Amounts due from lessees under finance leases are recorded as receivables at the Company''s net investment in the leases. Finance lease income is allocated to accounting periods so as to reflect a constant periodic rate of return on the net investment outstanding in respect of the lease.

1.14 IMPAIRMENT

- At each balance sheet date, the Company assesses whether there is any indication that any property, plant and equipment with finite lives may be impaired. If any such impairment exists the recoverable amount of an asset is estimated to determine the extent of impairment, if any, where it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

- Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

- I f the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognized immediately in the Statement of Profit and Loss.

1.15 EMPLOYEE BENEFITS

a) Gratuity

The Company have an obligation towards gratuity, a defined benefit retirement plan covering eligible employees and the Company funds the benefit through contributions.

For defined benefit retirement benefit plans, the cost of providing benefits is determined using the projected unit credit method, with actuarial valuations being carried out at the end of each year. Remeasurement,

comprising actuarial gains and losses, the effect of the changes to the asset ceiling and the return on plan assets (excluding net interest), is reflected immediately in the balance sheet with a charge or credit recognised in other comprehensive income in the period in which they occur. Remeasurement recognised in other comprehensive income is reflected immediately in retained earnings and is not reclassified to profit or loss. Past service cost is recognised in profit or loss in the period of a plan amendment. Net interest is calculated by applying the discount rate at the beginning of the period to the net defined benefit liability or asset. Defined benefit costs are categorized as follows:

i) service cost (including current service cost, past service cost, as well as gains and losses on curtailments and settlements);

ii) net interest expense or income; and

iii) re-measurement

The Company presents the first two components of defined benefit costs in profit or loss in the line item ''Employee benefits expense''. Curtailment gains and losses are accounted for as past service costs.

The retirement benefit obligation recognised in the balance sheet represents the actual deficit or surplus in the Company''s defined benefit plans. Any surplus resulting from this calculation is limited to the present value of any economic benefits available in the form of refunds from the plans or reductions in future contributions to the plans.

A liability for a termination benefit is recognised at the earlier of when the entity can no longer withdraw the offer of the termination benefit and when the entity recognizes any related restructuring costs.

b) Compensated absences

A liability of compensated absences recognised in the period the related service is rendered at the cost of providing benefits is determined using the projected unit credit method, with actuarial valuations being carried out at the end of each year.

c) Provident and other funds

Payments to defined contribution retirement benefit plans are recognised as an expense when employees have rendered service entitling them to the contributions.

Contribution towards provident fund for the employees is made to the regulatory authorities, where the Company has no further obligations. Such benefits are classified as Defined Contribution Schemes as the Company does not carry any further obligations, apart from the contributions (currently 12% of employees'' salary) made on a monthly basis. Contribution paid during the year are charged to Statement of Profit and Loss.

d) Leave Encashment

Provision for leave encashment is made on the basis of actuarial valuation done at the year end. Actuarial gains/ losses are recognised in the year in which such gains/ losses arise.

e) Measurement date

The measurement date of retirement plans is 31 March .

1.16 SEGMENT REPORTING

The Company is engaged mainly in the business of promotion, construction and development of integrated townships, residential and commercial complexes, multi-storeyed buildings, flats, houses, apartments, shopping malls etc.. These in the context of Ind AS 108 - operating segments reporting are considered to constitute one reportable segment.

1.17 BORROWING COST

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale. All other borrowing costs are recognised in profit and loss in the period in which they are incurred.

I nterest income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalization.

All other borrowing costs are recognised in profit or loss in the period in which they are incurred.

1.18 FINANCIAL INSTRUMENTS

a) Classification, initial recognition and measurement

- A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. Financial assets other than equity instruments are classified into categories: financial assets at fair value through profit or loss and at amortized cost. Financial assets that are equity instruments are classified as fair value through profit or loss or fair value through other comprehensive income. Financial liabilities are classified into financial liabilities at fair value through profit or loss.

- Financial instruments are recognized on the balance sheet when the Company becomes a party to the contractual provisions of the instrument.

- Initially, a financial instrument is recognized at its fair value. Transaction costs directly attributable to the acquisition or issue of financial instruments are recognized in determining the carrying amount, if it is not classified as at fair value through profit or loss. Subsequently, financial instruments are measured according to the category in which they are classified.

- Financial assets at amortized cost: Financial assets having contractual terms that give rise on specified dates to cash flows that are solely payments of principal and interest on the principal outstanding and that are held within a business model whose objective is to hold such assets in order to collect such contractual cash flows are classified in this category. Subsequently, these are measured at amortized cost using the effective interest method less any impairment losses.

- Equity investments at fair value through other comprehensive income: These include financial assets that are equity instruments and are irrevocably designated as such upon initial recognition. Subsequently, these are measured at fair value and changes therein are recognized directly in other comprehensive income, net of applicable income taxes.

- When the equity investment is derecognized, the cumulative gain or loss in equity is transferred to retained earnings.

- Financial assets at fair value through profit or loss: Financial assets are measured at fair value through profit or loss unless it is measured at amortized cost or at fair value through other comprehensive income on initial recognition. The transaction costs directly attributable to the acquisition of financial assets at fair value through profit or loss are immediately recognised in profit or loss.

- Equity instruments: An equity instrument is any contract that evidences residual interests in the assets of the Company after deducting all of its liabilities. Equity instruments issued by the Company are recorded at the proceeds received, net of direct issue costs.

- Financial liabilities at fair value through profit or loss: Derivatives, including embedded derivatives separated from the host contract, unless they are designated as hedging instruments, for which hedge accounting is applied, are classified into this category. These are measured at fair value with changes in fair value recognized in the Statement of Profit and Loss.

- Financial guarantee contracts: These are initially measured at their fair values and, are subsequently measured at the higher of the amount of loss allowance determined or the amount initially recognized less, the cumulative amount of income recognized.

- Other financial liabilities: These are measured at amortized cost using the effective interest method.

b) Determination of fair value:

The fair value of a financial instrument on initial recognition is normally the transaction price (fair value of the consideration given or received). Subsequent to initial recognition, the Company determines the fair value of financial instruments that are quoted in active markets using the quoted bid prices (financial assets held) or quoted ask prices (financial liabilities held) and using valuation techniques for other instruments. Valuation techniques include discounted cash flow method and other valuation models.

c) Derecognition of financial assets and financial liabilities:

The Company derecognizes a financial asset only when the contractual rights to the cash flows from the asset expires or it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another entity. If the Company neither transfers nor retains substantially all the risks and rewards of ownership and continues to control the transferred asset, the Company recognizes its retained interest in the asset and an associated liability for amounts it may have to pay. If the Company retains substantially all the risks and rewards of ownership of a transferred financial asset, the Company continues to recognize the financial asset and also recognizes a collateralized borrowing for the proceeds received.

Financial liabilities are derecognized when these are extinguished, that is when the obligation is discharged, cancelled or has expired.

d) Impairment of financial assets:

The Company recognizes a loss allowance for expected credit losses on a financial asset that is at amortized cost. Loss allowance in respect of financial assets is measured at an amount equal to life time expected credit losses and is calculated as the difference between their carrying amount and the present value of the expected future cash flows discounted at the original effective interest rate.

1.19 USE OF ESTIMATES AND JUDGEMENTS

- The preparation of financial statements in conformity with Ind AS requires management to make judgments,

estimates and assumptions, that affect the application of accounting policies and the reported amounts of

assets, liabilities and disclosures of contingent assets and liabilities at the date of these financial statements and the reported amounts of revenues and expenses for the years presented. Actual results may differ from these estimates.

- Estimates and underlying assumptions are reviewed at each balance sheet date. Revisions to accounting estimates are recognised in the period in which the estimate is revised and future periods affected.

- I n particular, information about significant areas of estimation of uncertainty and critical judgements in applying accounting policies at the date of the financial statements, which may cause a material adjustment to the carrying amounts of assets and liabilities within the next financial year the amounts recognised in the financial statements are given below:

a) Revenue Recognition

The Revenue is more dependent over the estimated cost and estimated revenue of the projects. The Company estimates total cost and total revenue of the project at the time of launch of the project. These are reviewed at each reporting date. Significant assumptions are required in determining the stage of completion and the estimated total contract cost. These estimates are based on events existing at the end of each reporting date.

b) Inventory

Inventory of real estate property including work-in-progress is valued at lower of cost and net realizable value (NRV). NRV of completed property is assessed by reference to market prices existing at the reporting date and based on comparable transactions made by the Company and/or identified by the Company for properties in same geographical area. NRV of properties under construction/development is assessed with reference to marked value of completed property as at the reporting date less estimated cost to complete.

c) Deferred Tax Assets/Liabilities

Recognition of deferred tax assets is based on estimates of taxable profits in future years. The Company prepares detailed cash flow and profitability projections, which are reviewed by the board of directors of the Company.

d) Contingent Liabilities

Assessment of the status of various legal cases/claims and other disputes where the Company does not expect any material outflow of resources and hence these are reflected as contingent liabilities (Refer Note 33)

e) Defined benefit plans

The cost and present value of the gratuity obligation and compensated absences are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases, attrition rate and mortality rates. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

f) Useful Life of Depreciable Assets/Amortisable Assets

Management reviews its estimate of the useful lives of depreciable/ amortisable assets at each reporting date, based on the expected utility of the assets. Certainties in these estimates relate to technical and economic obsolescence that may change the utility of assets.

g) Valuation of investment in subsidiaries and associate

I nvestments in Subsidiaries and associate are carried at cost. At each balance sheet date, the management assesses the indicators of impairment of such investments. This requires assessment of several external and internal factor including capitalisation rate, key assumption used in discounted cash flow models (such as revenue growth, unit price and discount rates) or sales comparison method which may affect the carrying value of investments in subsidiaries and associate.

h) Leases

The Company determines the lease term as the non-cancellable term of the lease, together with any periods covered by an option to extend the lease if it is reasonably certain to be exercised, or any periods covered by an option to terminate the lease, if it is reasonably certain not to be exercised.

The Company has several lease contracts that include extension and termination options. The Company applies judgement in evaluating whether it is reasonably certain whether or not to exercise the option to renew or terminate the lease. That is, it considers all relevant factors that create an economic incentive for it to exercise either the renewal or termination. After the commencement date, the Company reassesses the lease term if there is a significant event or change in circumstances that is within its control and affects its ability to exercise or not to exercise the option to renew or to terminate (e.g., construction of significant leasehold improvements or significant customisation to the leased asset)

8.1. Trade Receivable ageing schedule for the year ended as on March 31, 2023 and March 31, 2022 is given below

Due to practical expedient, It is not feasible to report the party wise details of trade receivable since the data is voluminous and it is not rational to break the entire receivable customer wise and age wise, hence trade receivable ageing schedule has not been provided for in the financial statements.

8.2. The average credit period is 21 to 45 days. For payments, beyond credit period, interest is charged as per contractual rate on outstanding balances which has been accounted for as per the policy of the company.

8.3 The real estate sales are made on the basis of cash down payment or construction linked payment plans. In case of construction linked payment plans, invoice is raised on the customer in accordance with milestones achieved as per the flat buyer agreement. The final possession of the property is offered to the customer subject to payment of full value of consideration. Accordingly, the Company does not expects any credit losses.

8.4 The Trade Receivables ageing has been shown at their gross value without considering the impact of Ind AS Adjustment . The Ind AS adjustment on the above is Rs.NIL and Rs. 7.69 Lakh for the F.Y. 2022-23 and F.Y. 2021-22 respectively.

8.5 The Trade Receivables are considered good as the possession is given to the customers and subsequently registry is executed only when complete payment is received against unit booked by the customers and accordingly there is no credit risk. Some customers have demanded interest on delayed delivery and the same is disputed by the company. The trade receivables recognised in the books of Account cannot be quantified customer wise as the revenue is recognised project wise based on revenue recognition policy of the company and hence disputed trade receivable, if any, can''t be quantified.

8.6 Trade Receivables includes amounting Rs. 207 Lakh (Previous Year: Rs. 86.00 Lakh) from subsidiary companies.

15.1 Nature and purpose of reserves:

- Capital Reserve - The Company has transferred the amount received on forfeiture of partly paid share/warrant in Capital reserve.

- Capital Redemption Reserve - The Company has transferred a part of the net profit of the company to the Capital Redemption Reserve in previous years on buy back of equity shares.

- Securities Premium - The amount received in excess of the face value of the equity share issued by the company is recognised in securities premium reserve.

- General Reserve - The Company has transferred a part of the net profit of the company to the general reserve in previous years.

- Retained earnings - Retained earnings are profits of the company earned till date less transferred to general reserve.

15.2 The Company had revalued building on 31st March, 1996 on the basis of approved valuer report and had balance of

Rs. 67.20 Lakh (Previous Year: Rs. 67.20 Lakh). This revaluation reserve has been clubbed into General Reserve due to adoption

of deemed cost option under Ind AS.

NOTES:

16.1 Term Loan from Corporate Bodies referred above to the extent of:

- Rs. 15525.89 Lakh (Previous Year: Rs. 15525.89 Lakh) are secured by way of mortgage of project land owned by the Company and its subsidiaries/associate situated at Agra, Indore, Meerut and certain Gurgaon projects, mortgage of Leasehold building/few unsold area and building situated at Noida , assignment of receivables of Agra, Indore, Meerut and certain Gurgaon projects and guaranteed by promoter director.

- Rs. 5659.11 (Previous Year: Rs. 5757.44 Lakh) are secured by way of mortgage of land owned by the Company and its subsidiaries situated at Yamunanagar and Amritsar, hypothecation of finished goods and assignment of receivables of these projects, corporate guarantee of Anjuman, Wrangler and Maestro and guaranteed by promoter director.

- Rs. Nil (Previous Year: Rs. 1038.08 Lakh) are secured by way of mortgage of land owned by the Company and its subsidiaries situated at Karnal under DDDJAY, hypothecation of finished goods and assignment of receivables of Karnal Project and guaranteed by promoter director.

- Rs. 2915.00 Lakh (Previous Year: Rs. 14985.00 Lakh) are secured by way of mortgage (second charge) of land owned by the Company and its subsidiaries situated at Gurgaon project: Highland Park (15 units only), assignment of finished goods and balance receivables of above projects, corporate guarantee of Identity Buildtech Pvt. Ltd. and guaranteed by promoter director. Rs. 2915 Lakh is non-interest bearing.

- The rate of interest are as per the sanction letter/agreement.

16.2 Vehicle/ Equipment Loan from Bank/ Corporate Bodies referred above are secured by way of hypothecation of respective vehicle/ construction equipment.

16.3 Term Loan from Corporate Bodies referred above to the extent of:

Rs. 24,100.00 Lakh have been guaranteed by the promoter and directors (previous year- 37,306.43 Lakh)

Rs. 8,574.11 Lakh have been guaranteed by the subsidiary companies (previous year- 5,757.45 Lakh)

16.4 Unsecured Loans referred above to the extent of:

Rs. 100.00 Lakh have been guaranteed by the promoter and directors (previous year- 100.00 Lakh)

16.5 Public Deposits:

The Company discontinued acceptance / renewal of fixed deposits w.e.f. April 1,2016. Due to recession in the real estate industry resulting in financial crunch, the Company approached the National Company Law Tribunal (NCLT), New Delhi, in July 2016 under section 74(2) of the Companies Act, 2013 and had received the approval for extension of time to repay the deposits vide NCLT''s order dated October 3, 2016. The total deposits at the time of Company''s application to the NCLT amounting to Rs. 8457.47 Lakh were generally being repaid by the Company as per the terms of NCLT Orders though there were some overdue amounts.

Further, the NCLT vide its order dated September 23, 2021 has permitted to pay Rs. 40.00 Lakh per month from September 2021 to March 2022. Also, The Honourable court has temporarily waived the requirement for keeping the mandatory margin money as liquid asset in the Deposit Redemption Reserve Account till March 31,2022.

The Hon''ble NCLT vide its order dated September 21, 2022, allowed the waiver for the requirement to maintain Deposit Redemption Reserve till March 31, 2023.

Further in respect of default in repayment of public deposits accepted by the company, NCLT vide its order dated September 21,2022 rejected the Company''s prayer seeking extension of time for repayment of public deposits

The Company preferred an appeal before the NCLAT against order dated September 21, 2022 of NCLT and the NCLAT Vide order dated 14.12.2022 rejected the appeal of the Company for seeking time extension for repayment and remitted back the matter to the NCLT to take consequential steps in terms of section 74 (3) of the Act.

Against this NCLAT order, the company filed an appeal (dated January 31, 2023) with the Hon''ble Supreme Court, which was dismissed as withdrawn on February 13, 2023.

Further, the Company has entered into full and final settlement of the balance payment of the maturity amount and issued post-dated cheques (PDC''s) to substantial depositors and the same has been duly agreed and accepted by the respective depositors. The company is duly following this process.

In due compliance with the Act, holistically, the company has settled substantial depositors. The PDC''s as issued is being duly encashed/honoured as per the agreed terms and conditions of the settlement.

The Company has taken legal opinion to substantiate/ corroborate its acts. As per the legal opinion, the process of repayment adopted by the Company meets the requirement of the applicable provision of the Companies Act, 2013.

16.6 Loan Recall Notice (India Bulls):

The company had received a letter dated 28/01/2021 on "Revocation of settlement of outstanding dues approved vide letter dated 17/11/2017” from IFCI Limited("Lender”) and consequently received "Notice for payment of Dues” showing an outstanding balance of Rs. 5,757.45 Lakh & Rs7,226.68 Lakh as principal and interest respectively till 08.04.2022. Due to the revocation of restructuring, interest liability has been enhanced due to default interest.

During the year, the company has received notice dated 08.04.2022 under Sec 13(2) of the Securitisation and Reconstructions of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002 from IFCI Ltd. ("Lender”) demanding full repayment of Rs. 12,984.13 Lakh (including interest till 08.04.2022).

The company has also received summon under sub-section (4) of section 19 of the Recovery of Debts and Bankruptcy Act, 1993, read with sub-rule (2A) of rule 5 of the Debt Recovery Tribunal (Procedure) rules, 1993 from Debts Recovery Tribunal Delhi (DRT-1) dated 01/04/2022. Futher, the company has received a notice u/s 13(4) of SARFAESI Act, 2002 where by the lender has taken over the symbolic possession of the immovable property situated at Amritsar, Punjab on August 5, 2002 and of the immovable property situated at Yamuna Nagar, Haryana on August 10, 2002.

Furthermore, IFCI moved an insolvency application against the company under Corporate Insolvency Resolution Process (''CIRP'') on February 8, 2023 vide case number C.P (IB)- 86/2023 in NCLT-Delhi and same is pending as on date.

Subsequently, the company has received notice under Rule8(6) r/w Rule 6(1) & 6(2) of Securities Interest (Enforcement) Rules, 2002 bearing IFCI/M&R/AHL/2023 dated 24.04.2023, stating that owing to consistent default to clear outstanding dues on part of the company, IFCI shall be putting the secured assets under possession to auction as per Rule 9 of the Securities Interest (Enforcement) Rules, 2002 after the expiry of 30 days from receipt of said notice by any method as mentioned in Rule 8, in case the company failed to clear the outstanding dues amounting to Rs.15,204.53 Lakhs (as on 15.04.2023).

The company filed stay application for stay order against the aforesaid notice issued by IFCI in Hon''ble DRT and the same has not been listed.

The company is also in discussion with the lender to resolve the matter in the best possible manner. The outstanding liability as per books of accounts as on March 31,2023 is Rs.13,258.28 Lakh (including interest) and default interest is shown under Contingent liability amounting to Rs.1,852.47 Lakh. (Previous Year Rs. 1300.57 Lakh).

32 EXCEPTIONAL ITEM

The company ("Borrower/ Developer”) received notice under Sec 13(2) of the Securitisation and Reconstructions of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002 from India bulls Asset Reconstruction Company Limited ("Lender”) demanding full repayment of Rs. 17,508 Lakh (including interest till 05.04.2019). Further, the company had received notice u/s 13(4) of the SARFASAI Act, 2002 where India bulls Asset Reconstruction Company Limited (IBARC) had taken over the symbolic possession on August 5, 2019 of certain mortgaged properties. Additionally, the company received letter dated May 26, 2021 from Assets Care and Reconstruction Enterprise Limited ("ACRE/Lender”) (Acting in its capacity as Trustee of ACRE-102-Trust) regarding the assignment of the entire debt/facility from IBARC to ACRE.

Subsequently during the previous quarter ended September 2022, upon the request of the borrower, the lender is agreeable to accept payment from the borrower of the following cash flows towards full and final settlement against all the outstanding dues in the lender''s books of accounts pertaining to the loan agreements executed between the parties vide letter dated September 13, 2022.

(i) An amount of Rs. 6,500.00 Lakh, which is to be paid on or before the execution of the sale deed with the proposed buyer in connection with the sale of the immovable property of project named Ansal Amantre (hereinafter referred to as Project).

(ii) Expected estimated cash flow of Rs.1,384.00 Lakh from the sale of 15 units in the Ansal Highland Project on which the lender has an exclusive charge.

(iii) Any remaining surplus from Ansal Highland Park Project, post-debt servicing and exit of SWAMIH Loan which as on today is estimated to be approximate Rs. 1,531.00 Lakh.

In order to comply with the terms of the letter, the following agreements/action has been taken:

- An extinguishment agreement dated October 14, 2022 was entered between the Oriane Developers Pvt. Ltd. (Landowner) and Ansal Housing Limited (Developer) to invoke and extinguish all the rights of the developer under the Joint Development Agreement dated November 27, 2013 (JDA) for consideration of Rs.9,800.00 Lakh.

- An agreement to sell dated September 17, 2022 read with the addendum was executed for total sale consideration of Rs.11,332.44 Lakh against the sale and transfer of all legal rights and obligations relating to the said project. The stipulations/ conditions as mentioned in all the above agreements/letters have been duly complied with (as applicable) and subsequently, sale deed has been executed on October 20, 2022.

The company has taken the impact of the above agreement/settlement/letter in the financial statements as an exceptional item as under:

a) In respect of certain assessment years upto 2006-07, the Delhi High Court has allowed the appeal of the Income Tax Department filed against the order of the Income Tax Appellate Tribunal, New Delhi, holding that the Notional Annual Letting Value of Flats/Commercial spaces etc. lying unsold in the closing stock is liable to tax under the head ''Income from House Property''. Based on the High Court Order, the tax department has created a demand of Rs.1261.59 Lakh (Previous Year: Rs. 1261.59 Lakh) against the Company. The Company has filed special leave petition before the Supreme Court against the addition of Rs. 1080.77 Lakhs (Previous Year Rs 1080.77 Lakh) by virtue of the order of the Delhi High Court which has been admitted by the Supreme Court and for the balance Rs 180.82 Lakhs (Previous Year Rs 180.82 Lakhs) the company has moved appeals which are pending before the ITAT/CIT. A further liability of Rs.360.42 Lakh (Previous Year: Rs.360.42 Lakh) is estimated in respect of cases where the department has gone into appeal which are pending before the ITAT/High Court. Further in respect of certain assessment years the company/department has gone into appeals on various matters at different forums for an amount of Rs. 831.51 Lakhs (Previous Year Rs. 1,004.94 Lakhs).

b) In respect of certain assessment years, Sales tax authorities have held that construction of properties by developer/ builder is liable to sales tax / VAT and have raised a demand of Rs.1189.24 Lakh (Previous Year: Rs.1120.29 Lakh) against the Company which are being disputed by the Company before the appellate authorities. Against these demands, the Company has paid Rs.160.12 Lakh (Previous Year: Rs.71.77 Lakh) under protest and the balance demand has been stayed by the authorities. The management is of the view that in case the Company becomes liable to pay sales tax /VAT, the same will be recovered from the customers to whom these properties have been sold and there is no contingent liability in this respect. The Company has started collecting VAT from Customers on provisional basis.

c) The Revenue Authorities of different states have raised demands of Rs.586.51 Lakh (Previous Year: Rs.686.75 Lakh) towards deficiency in Stamp Duty on purchase of land / registration of agreements. Against these demands, the Company has paid Rs.251.53 Lakh (Previous Year: Rs.251.53 Lakh) under protest and the balance demand has been stayed by the appellate authorities. Pending final decision in the matter, no provision has been considered necessary.

In respect of various claims against the Company disclosed above, it has been advised that it has a reasonably good case to succeed at various appellate authorities and hence does not expect any material liability when the cases are finally decided.

d) In Respect of A.Y 2014-15, 2015-16 and 2016-17, Commissioner of income tax has issued a notice to company for TDS Demand amounting to Rs 32.01 Lakh in respect of non deduction of TDS on external development charges paid by company to DTCP and corressponding interest amounting to Rs 33.62 Lakh on account of non-deduction of TDS. The same has been disputed by the company against the commissioner of income tax at CIT (Appeals). Pending final decision in the matter, management is of the view that the company has good chances of getting the matter decided in its favour and hence no provisioning in respect of the said matter has been done in the books of accounts.

In Respect of A.Y 2016-17, Commissioner of Income tax has issued a notice to company for TDS demand amounting to Rs. 5.39 Lakhs in respect of non-deduction of TDS on brokerage paid by company and corresponding interest amounting to Rs. 4.92 lakhs on account of non-deduction of TDS.The same has been disputed by the company against the commissioner of income tax at CIT(Appeals). Pending final decision in the matter, management is of the view that the company has good chances of getting the matter decided in its favour and hence no provisioning in respect of the said matter has been done in the books of accounts.

iii) In respect of block assessment for the period 01 April 1989 to 10 February 2000, Income Tax Appealet Tribunal (ITAT) has given full relief to the company and rejected department''s ground of appeal for tax claim of Rs. 127.07 Lakhs (Previous Year: Rs.127.07 Lakh). Further, in respect of assessment of certain years, demands had been raised by the Income Tax Department against the Company amounting to Rs.564.64 Lakh (Previous Year: Rs.564.64 Lakh) approx. by disallowing deduction under section 80(IB) of the Income Tax Act, 1961 and other matters. The appeal filed by the Company have been decided in its favour by CIT (Appeals) / ITAT / High Court. The tax department has gone for further reference in the above matters to ITAT/ High Court/Supreme Court. The Management has been advised that it has a good case to succeed and no tax liability is likely to be arise in these cases.

iv) Due to depressed market conditions, in some of the cases sale consideration received on sale of plots / flats/ apartments

is lower than the value adopted or assessed by the regulatory authorities for the purpose of payment of stamp duty (circle rate) and could attract the provisions of section 43CA of the Income Tax Act, 1961. For the year Assessment Year 2014-15, 2015-16, 2016-17 & 2017-18 the assessing officer has added the difference between sale consideration and circle rates to the income of the Company and created additional demand of Rs.1268.55 Lakh (Previous Year: Rs.1268.55 Lakh), out of the mentioned demand, demand of Rs 981.07 (Previous year Rs 981.07 Lakhs) has been contested by the company and Rs 287.48 Lakhs (Previous Year Rs 287.48 Lakhs) has been contested by department. The Company has opted to refer the matter to Valuation Cell of the Income Tax Department for assessing the fair value of the properties sold. The final tax liability under section 43CA can not be ascertained at this stage as the Income Tax Department has not completed the valuation exercise. Such dispute is likely to arise for the subsequent financial years also. .

v) During the financial year 2021-22, the assessment for assessment year 2013-14 was reopened by issue of notice u/s 148 of Income Tax Act. The assessment in this case was completed u/s 143(3) read with section 147 and a demand of Rs.2,643.39 Lakh (including interest) (Previous year 2852.55 Lakh) has been raised by the Income Tax Department. The assessee company preferred an appeal before Hon''ble CIT (A) against additions made by order u/s 143(3)/ 147. The assessee raised several grounds of appeal and is very hopeful of getting full relief under appeal.

33.2 Due to unascertainable outcome for pending litigation matters with Court/Appellate Authorities, the company''s management expects no material adjustments on the standalone financial statements. Further, the company may be liable to pay damages/ interest for specific non- performance of certain real estate agreements, civil cases preferred against the Company for specific performance of the land agreement. The actual liability on account of these may differ from the provisions already created in the books of accounts and disclosed as contingent liability.

33.3 Capital and Other Commitments

i) Estimated amount of contracts remaining to be executed on capital account (net of advances) and not provided for Rs. NIL (Previous year Rs NIL)

ii) The Company has entered into joint development agreements with owners of land for its construction and development. As stipulated under the agreements, the Company is required to share in area/ revenue from such development in exchange of undivided share in land as stipulated under the agreements. As on March 31,2023 the Company has paid Rs.6,542.95 Lakh (Previous Year: Rs..7,332.02 Lakh) as deposits/ advances against the joint development agreements. Further, the Company has given advances for purchase of land. Under the agreements executed with the land owners, the Company is required to make further payments based on terms/ milestones stipulated in the agreement.

34. The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on Long term contracts. Further the company did not have any derivative contracts.

35 . There have been no delays in transferring amounts required to be transferred to the Investor Education and Protection Fund.

36. The Company has no outstanding derivative or foreign currency exposure as at the end of the current year and previous year.

37. Inventory of Land includes Rs.652.34 Lakh (Previous Year: Rs.736.94 Lakh) acquired by subsidiary companies/ others. The land is registered in the name of the subsidiary companies/ others but is under the possession and control of the Company for development and sale of Real Estate Projects in terms of collaboration agreement with these companies.

38. The Company is engaged primarily in the business of Real Estate development there are no separate reportable segments as per criterion set out under Ind AS 108 on "Segment Reporting" in the Company.

X Risk Exposure

These plans typically expose the Company to actuarial risks such as

- Interest Rate Risk : the defined benefit obligation calculated uses a discount rate based on government bonds. If bond yields fall, the defined benefit obligation will tend to increase.

- Salary Inflation risk : higher than expected increases in salary will increase the defined benefit obligation.

- Demographic risks : this is the risk of volatility of results due to unexpected nature of decrements that include mortality attrition, disability and retirement. The effects of these decrement on the DBO depends upon the combination salary increase, discount rate, and vesting criteria and therefore not very straight forward. It is important not to overstate withdrawal rate because the cost of retirement benefit of a short caring employees will be less compared to long service employees.

- Asset Liability Mismatch : This will come into play unless the funds are invested with a term of the assets replicating the term of the liability.

- Investment Risk : For funded plans that rely on insurers for managing the assets, the value of assets certified by the insurer may not be the fair value of instruments backing the liability. In such cases, the present value of the assets is independent of the future discount rate. This can result in wide fluctuations in the net liability or the funded status if there are significant changes in the discount rate during the inter-valuation period.

- Liquidity Risk : Employees with high salaries and long durations or those higher in hierarchy, accumulate significant level of benefits. If some of such employees resign / retire from the company there can be strain on the cash flows.

- Legislative Risk/Regulatory Risk : Legislative risk is the risk of increase in the plan liabilities or reduction in the plan assets due to change in the legislation / regulation. The government may amend the Payment of Gratuity Act thus requiring the companies to pay higher benefits to the employees. This will directly affect the present value of the Defined Benefit Obligation and the same will have to be recognized immediately in the year when any such amendment is effective.

XI Leave Encashment

The leave obligations cover the Company''s liability for earned leaves. The amount of provision of Rs.14.44 Lakh (Previous Year: Rs.12.06 Lakh) is presented as current, since the Company does not have an unconditional right to defer settlement for any of these obligations. However, based on past experience, the Company does not expect all employees to take the full amount of accrued leave or require payment within the next 12 months, therefore based on the independent actuarial report, only a certain amount of provision has been presented as current and remaining as non-current. The amount debited/ (recognized) for the year is:

B. Defined Contribution Plan

The Company makes provident fund contribution to defined contribution retirement benefit plan for its employees. Under the scheme, the company deposits an amount determined as a specified percentage of basic pay with the regional provident fund commissioner. Contribution to defined contribution plan recognized as expense for the year is Rs.49.51 Lakh (Previous Year: Rs. 58.60 Lakh).

46. Related Party Disclosures

As per Indian Accounting Standard-24, the disclosures of transactions with related parties are given below:

a) List of the related parties where control exist and related parties with whom transaction have taken place and description of their relationship: :

1 Wholly Owned Subsidiaries M/s Geo Connect Ltd.

M/s Housing & Construction Lanka Pvt. Ltd.

M/s Maestro Promoters Pvt. Ltd.

M/s Wrangler Builders Pvt. Ltd.

M/s Anjuman Buildcon Pvt. Ltd.

M/s A R Infrastructure Pvt. Ltd.

M/s A R Paradise Pvt. Ltd.

M/s Fenny Real Estates Pvt. Ltd.

M/s Third Eye Media Pvt Ltd.

M/s Sunrise Facility Management Pvt. Ltd.

M/s Aevee Iron & Steel Works Pvt. Ltd.

M/s Andri Builders & Developers Pvt. Ltd.

M/s VS Infratown Pvt. Ltd.

M/s Cross Bridge Developers Pvt. Ltd.

M/s Identity Buildtech Pvt. Ltd.

M/s Shamia Automobiles Pvt. Ltd.

M/s Oriane Developers Pvt. Ltd.

2 Key Management Personnel Mr. Kushagr Ansal (Whole Time Director)

(KMP''s)/Non Executive Director Mrs. Neha Ansal (Non Executive Director)

Mrs. Iqneet Kaur(Non Executive Indep

---

Mar 31, 2018

NOTE

1. BACKGROUND & OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES

A. CORPORATE INFORMATION

- Ansal Housing and Construction Limited referred to as (“the Company” or “Ansal Housing”) engaged in the business of promotion, construction and development of integrated townships, residential and commercial complexes, multi-storeyed buildings, flats, houses, apartments, shopping malls etc.

- The Company is a public limited company incorporated and domiciled in India. The address of its registered office 606, Indra Prakash, 21 Barakhamba Road, New Delhi-110 001 having Corporate Identity Number: L45201DL1983PLC016821. The Company is listed on the National Stock Exchange of India Limited. (NSE) and BSE Limited (BSE).

iii. Legal formalities relating to conveyance of freehold building having gross value of Rs. 638.75 Lakh (as at 31st March, 2017: Rs. 638.75 Lakh, as at 1st April, 2016 Rs. 638.75 Lakh) and lease deed of lease hold building having gross value of Rs. 1218.49 Lakh (as at 31st March, 2017: Rs. 1218.49 Lakh, as at 1st April, 2016: Rs. 1218.49 Lakh) are pending execution.

iv. For details of Assets charged, Refer Note-16 and Note - 20

2.1. The average credit period is 21 to 45 days. For payments, beyond credit period, interest is charged as per contractual rate on outstanding balances which has been accounted for as per the policy of the company.

2.2. The real estate sales are made on the basis of cash down payment or construction linked payment plans. In case of construction linked payment plans, invoice is raised on the customer in accordance with milestones achieved as per the flat buyer agreement. The final possession of the property is offered to the customer subject to payment of full value of consideration. Accordingly, the Company does not expects any credit losses.

3.1 Fixed Deposits with Banks includes deposits of Rs. Nil (Previous year Rs. Nil) with maturity of more than 12 months.

3.2 Cash and Bank balances includes restricted cash balance of Rs.1312.95 Lakh (as at 31st March 2017: Rs.1342.19 Lakh). The restrictions are primarily on account of cash and bank balances held as margin money, deposit against guarantees, unpaid dividends and escrow accounts.

3.3 The deposit maintained by the Company with banks can be withdrawn at any point of time without prior notice or penalty on the principal.

4.1 Terms/ Rights attached to equity shares

The Company has only one class of equity shares having a par value of Rs.10/- per share. Each holder of equity shares is entitled to one vote per share. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation of the Company, the holders of equity shares would be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of the equity shares held by the shareholders.

4.2 Equity Shares bought back and extinguished during the last five years

- 3,97,296 Equity Shares bought back during the financial year 2012-13

4.3 The Company has not issued any preference share capital

5.1 Nature and purpose of reserves:

- Capital Reserve - The Company has transferred the amount received on forfeiture of partly paid share/warrant in Capital reserve.

- Capital Redemption Reserve - The Company has transferred a part of the net profit of the company to the Capital Redemption Reserve in previous years on buy back of equity shares

- Securities Premium Account - The amount received in excess of the face value of the equity share issued by the company is recognised in securities premium reserve.

- General Reserve - The Company has transferred a part of the net profit of the company to the general reserve in previous years.

- Retained earnings - Retained earnings are profits of the company earned till date less transferred to general reserve.

5.2 The Company had revalued building on 31st March, 1996 on the basis of approved valuer report and had balance of Rs. 606.21 Lakh in revaluation reserve on the date of transition. On transition (i.e. 1st April, 2016) company has elected to Para D7AA of Ind AS-101 as deemed cost due to which such revaluation reserve has been transferred to general reserve.

NOTES:

6.1 Term Loan from Bank referred above to the extent of:

- Rs. Nil (as at 31st March,2017: Rs. Nil and as at 1st April,2016: Rs. 3400.00 Lakh) are secured by way of mortgage of project land owned by the Company and its subsidiaries situated at Gurgaon and hypothecation of finished goods and receivables of Gurgaon Project, assignment of receivables of Alwar project, pledge of term deposit, pledge of shares of a subsidiary company and pledge of part of promoters shareholding in the Company.

6.2 Bank Overdraft referred above to the extent of:

- Rs. 316.38 Lakh (as at 31st March,2017: Rs. 414.38 Lakh and as at 1st April,2016: Rs.490.33 Lakh) overdraft facility is secured by way of mortgage of unsold units owned by the Company in one of its project at Ghaziabad and guaranteed by promoter directors.

6.3 Term Loan from Corporate Bodies referred above to the extent of:

- Rs. 18384.62 Lakh (as at 31st March,2017: Rs. 17055.68 Lakh and as at 1st April,2016: Rs.19055.81 Lakh) are secured by way of mortgage of project land owned by the Company and its subsidiaries situated at Agra, Indore, Meerut and Gurgaon, mortgage of building situated at Noida, mortgage of premises situated at Delhi owned by promoter directors and their families, assignment of receivables of Agra, Indore, Meerut and certain Gurgaon projects and pledge of part of promoters shareholding in the Company and guaranteed by promoter directors.

The Ind AS adjustment on the above loan is Rs. 240.35 Lakh (as at 31st March, 2017 Rs. 360.83 Lakh and as at 1st April, 2016 Rs. 125.31 Lakh)

- Rs. 709.14 Lakh (as at 31st March,2017: Rs. 967.49 Lakh and as at 1st April,2016: Rs. 787.77 Lakh) are secured by way of mortgage of Commercial Plot owned by the Company, Residential plot owned by promoter situated at Noida and Palam Vihar respectively, unsold units in the project at Meerut and guaranteed by promoter director.

- Rs. 8456.14 Lakh (as at 31st March,2017: Rs. 8117.56 Lakh and as at 1st April,2016: Rs.9375.00 Lakh) are secured by way of mortgage of land owned by the Company and its subsidiaries situated at Yamunanagar and Amritsar and assignment of receivables of Yamunanagar Project and guaranteed by promoter directors.

- Rs.22.67 Lakh (as at 31st March,2017: Rs. 485.67 Lakh and as at 1st April,2016: Rs.818.00 Lakh) are secured by way of mortgage of land owned by the Company and its subsidiaries situated at Jhansi and Ghaziabad and assignment of receivables of Jhansi and Ghaziabad Projects and guaranteed by promoter directors.

- Rs. 13083.82 Lakh (as at 31st March,2017: Rs. 11937.97 Lakh and as at 1st April,2016: Rs. 3738.87 Lakh) are secured by way of mortgage of land owned by the Company and its subsidiaries situated at Gurgaon, assignment of receivables of Gurgaon Projects, pledge of term deposit and pledge of shares of a subsidiary company and associate company and guaranteed by promoter directors.

The Ind AS adjustment on the above loan is Rs. 704.68 Lakh (as at 31st March, 2017: Rs. 1253.28 Lakh and as at 1st April, 2016: Rs. NIL)

- The rate of interest are as per the sanction letter/agreement.

6.4 Vehicle/ Equipment Loan from Bank/ Corporate Bodies referred above are secured by way of hypothecation of respective vehicle/ construction equipment.

6.5 Term Loan from Bank referred above to the extent of: Rs. 316.38 have been guaranteed by the promoter (As at 31st March,2017: Rs. 414.38 Lakh and As at 1st April, 2016: Lakh directors. Rs.3890.33 Lakh)

6.6 Term Loan from Corporate Bodies referred above to the extent of: Rs.. 761.33 have been guaranteed by the promoter (As at 31st March,2017 Rs. 38290.73 Lakh and As at 1st April, Lakh directors. 2016 Rs. 33775.45 Lakh) Rs. 21,562.63 have been guaranteed by the subsidiary (As at 31st March,2017 Rs.20541.20 Lakh and As at 1st April, Lakh companies. 2016 Rs.13931.87 Lakh)

6.7 Public Deposits:

The Company has discontinued acceptance / renewal of fixed deposits w.e.f. 1st April, 2016. Due to recession in the real estate industry resulting in financial crunch, the Company approached the National Company Law Tribunal (NCLT), New Delhi, in July 2016 under section 74(2) of the Companies Act, 2013 and has received the approval for extension of time to repay the deposits vide NCLT’s order dated 3rd October, 2016. The total deposits at the time of Company’s application to the NCLT amounting to Rs.8457.47 Lakh are generally being repaid by the Company as per the terms of NCLT Orders though there are some overdue amounts. However, the NCLT vide its order dated 1st December,2017 has permitted to pay Rs. 125.00 Lakh per month including hardship cases and same scheme has been extended by NCLT till July 2018 vide its latest order dated 10.05.2018. The Company is in the process of complying with the above NCLT orders. The outstanding amount of public deposits as on 31st March, 2018 has been classified into current and non current after considering extension granted by the NCLT.

6.8 Loan under Restructuring:

Long term loan from IFCI have been restructured on 17th November 2017 with cut-off date of 15th July 2017. The Company is entitled to reliefs and concessions granted by the financial institution effective from the cut-off date. Key terms of restructuring is as under:

- Tenure : 8 Years and 6 Months

- Additional moratorium of 3 months from cut-off date on principal repayments.

- Principal Repayment of Loans: 99 structured monthly installments starting from 15th October, 2017 till 15th December, 2025

- Interest obligation aggregating Rs. 518.13 Lakh on cut-off date was converted into Funded Interest term Loan (FITL) and repayable in 21 structured monthly installments starting from 15th August, 2017

NOTES:

9.1 Working Capital Loans from Scheduled Banks are secured by charge over stocks of materials, unsold finished stock, construction work-in-progress, book-debts of the Company, Commercial Flats at Indra Prakash Building, Commercial Plot at Parwanoo, Residential Plot at Lucknow, Residential Plots at Gurgaon owned by director & their family, Unsold area & Corporate Office at Ghaziabad and have been guaranteed by promoter directors & their family. The rate of interest are as per the sanction letter.

9.2 Term Loan from Corporate Bodies of Rs. Nil (as at 31st March,2017: Rs. Nil and as at 1st April,2016 Rs. 500.00 Lakh) is secured by way of mortgage of project land owned by a Subsidiary Company at Gurgaon. The rate of interest are as per the agreement/ sanction letter.

10.1 Refer Note 47 for Trade payables which are going to be settled within 12 months from the reporting date & for information about liquidity risk and market risk.

NOTE:

11.1 The Other payables referred above includes Brokerage Provision, Customer Refund, payable to Associates Co. and Staff Imprest. Further Customer Refund Includes Rs. 698.52 Lakh (as at 31st March 2017 Rs. 100.77 Lakh and as at 01st April, 2016 Rs. 100.77 Lakh) payable to subsidiary company and Rs. 110.52 Lakh (as at 31st March 2017 Rs. 19.14 Lakh and as at 01st April 2016 Rs. 10.00 Lakh) payable to other related parties.

11.2 Other payables also includes Rs. 3.90 Lakh (as at 31st March,2017: Rs. 3.95 Lakh and as at 1st April, 2016: Rs. 5.27 Lakh) payable to subsidiary Companies.

11.3 Refer Note 47 for other financial liabilities which are going to be settled within 12 months from the reporting date & for information about liquidity risk and market risk.

NOTES:

12.1 The Advances from Customers referred above includes Rs. 2,986.32 Lakh (as at 31st March,2017: Rs.2,927.72 Lakh and as at 31st March,2016: Rs. 2,899.10 Lakh) received from subsidiary Companies and Rs.733.98 Lakh (as at 31st March,2017 Rs. 1,636.65 Lakh and as at 31st March,2016: Rs. 1,525.21 Lakh) from other related parties.

12.2 Advances from customers are against sale of real estate projects and generally are not refundable except in the case of cancellation of bookings.

a) In respect of certain assessment years upto 2006-07, the Delhi High Court has allowed the appeal of the Income Tax Department filed against the order of the Income Tax Appellate Tribunal, New Delhi, holding that the Notional Annual Letting Value of Flats/Commercial spaces etc. lying unsold in the closing stock is liable to tax under the head ‘Income from House Property’. Based on the High Court Order, the tax department has created a demand of Rs.1232.34 Lakh (as at 31.03.2017: Rs. 1217.24 Lakh, as at 01.04.2016 Rs.1112.67 Lakh) against the Company and a further liability of Rs.360.42 Lakh (as at 31.03.2017: Rs.360.42 Lakh, as at 01.04.2016 Rs.442.62 Lakh) is estimated in respect of cases which are pending before the ITAT/High Court. The Company has filed special leave petition before the Supreme Court against the order of the Delhi High Court which has been admitted by the Supreme Court.

b) In respect of certain assessment years, Sales tax authorities have held that construction of properties by developer/ builder is liable to sales tax / VAT and have raised a demand of Rs.1211.06 Lakh (as at 31.03.2017: Rs.1066.37 Lakh, as at 01.04.2016 Rs. 825.21 Lakh) against the Company which are being disputed by the Company before the appellate authorities. Against these demands, the Company has paid Rs.634.47 Lakh (as at 31.03.2017: Rs.612.72 Lakh, as at 01.04.2016 Rs.482.57 Lakh) under protest and the balance demand has been stayed by the authorities. The management is of the view that in case the Company becomes liable to pay sales tax /VAT, the same will be recovered from the customers to whom these properties have been sold and there is no contingent liability in this respect. The Company has started collecting VAT from Customers on provisional basis.

c) The Revenue Authorities of different states have raised demands of Rs.709.84 Lakh (as at 31.03.2017: Rs.691.70 Lakh, as at 01.04.2016 Rs.691.70 Lakh) towards deficiency in Stamp Duty on purchase of land / registration of agreements. Against these demands, the Company has paid Rs.233.92 Lakh (as at 31.03.2017: Rs.214.59 Lakh, as at 01.04.2016 Rs.214.59 Lakh) under protest and the balance demand has been stayed by the appellate authorities. Pending final decision in the matter, no provision has been considered necessary.

d) The service tax demand received by the company from the Service Tax Authorities has been reduced to NIL, (as at 31.03.2017: Rs.183.78 Lakh, as at 01.04.2016 Rs.271.31 Lakh) on transfer changes / administrative charges / processing charges recovered from the customers for the period upto March 2010. The Company had filed an appeal with Custom, Excise and Service Tax Appellate Tribunal (CESTAT), New Delhi. The CESTAT had deleted the penalty levied by the service tax department and reduced the demand to Rs.135.73 Lakh. The Company has filed an application before CESTAT for rectification and rehearing of the appeal as the written representation of the Company were not considered by the CESTAT. The CESTAT wide its order dated 27.09.2017 has accepted the appeal of the company and reduced the above demand of Rs.135.73 Lakh to NIL. During the previous year, the company had received a further demand of Rs.48.05 Lakh for the period April 2010 to June 2012 on similar matter against which the Company has filed an appeal before the CESTAT, New Delhi. The CESTAT wide its order dated 17.11.17 has accepted the appeal of the company and reduced the above demand of Rs.48.05 Lakh to NIL.

In respect of various claims against the Company disclosed above, it has been advised that it has a reasonably good case to succeed at various appellate authorities and hence does not expect any material liability when the cases are finally decided.

iii) In respect of block assessment for the period 01April 1989 to 10 February 2000, Income Tax Appellate Tribunal (ITAT) has given full relief to the company and rejected departments ground of appeal for tax claim of Rs.127.07 Lakh (as at 31.03.2017: Rs.127.07 Lakh, as at 01.04.2016: Rs.127.07 Lakh). Further, in respect of assessment of certain years, demands had been raised by the Income Tax Department against the Company amounting to Rs.723.45 Lakh (as at 31.03.2017: Rs.723.45 Lakh, as at 01.04.2016 Rs.786.82 Lakh) approx by disallowing deduction under section 80(IB) of the Income Tax Act, 1961 and other matters. The appeal filed by the Company have been decided in its favour by CIT (Appeals) / ITAT / High Court. The tax department has gone for further reference in the above matters to ITAT/High Court/Supreme Court. The Management has been advised that it has a good case to succeed and no tax liability is likely to be arise in these cases.

iv) Due to depressed market conditions, in some of the cases sale consideration received on sale of plots / flats/ apartments is lower than the value adopted or assessed by the regulatory authorities for the purpose of payment of stamp duty (circle rate) and could attract the provisions of section 43CA of the Income Tax Act, 1961. For the year Assessment Year 2014-15 & 2015-16, the assessing officer has added the difference between sale consideration and circle rates to the income of the Company and created additional demand of Rs.773.04 Lakh (Previous year Rs.222.76 Lakh) . The Company has opted to refer the matter to Valuation Cell of the Income Tax Department for assessing the fair value of the properties sold. The final tax liability under section 43CA can not be ascertained at this stage as the Income Tax Department has not completed the valuation exercise. Such dispute is likely to arise for the subsequent financial years also.

13.1 Capital and Other Commitments

i) Estimated amount of contracts remaining to be executed on capital account (net of advances) and not provided for Rs.NIL (Previous year Rs NIL).

ii) The Company has entered into joint development agreements with owners of land for its construction and development. As stipulated under the agreements, the Company is required to share in area/ revenue from such development in exchange of undivided share in land as stipulated under the agreements. As on March 31,2018 the Company has paid Rs.8116.01 Lakh (as at 31.03.2017: Rs.8506.67 Lakh, as at 01.04.2016: Rs.8319.34 Lakh) as deposits/ advances against the joint development agreements. Further, the Company has given advances for purchase of land. Under the agreements executed with the land owners, the Company is required to make further payments based on terms/ milestones stipulated in the agreement. The future commitment in respect of purchase of land, to the extent quantifiable, amounts to Rs. NIL/- (as at 31.03.2017: Rs.Nil, as at 01.04.2016: Rs.225.00 Lakh).

14. The Company did not have any long term contracts including derivative contracts for which there are any material foreseeable losses.

15. There have been no delays in transferring amounts required to be transferred to the Investor Education and Protection Fund.

16. The Company has no outstanding derivative or foreign currency exposure as at the end of the current year and previous year.

17. Inventory of Land includes Rs.830.99 Lakh (as at 31st March,2017: Rs.880.57 Lakh and as at 1st April,2016: Rs.1267.39 Lakh) acquired by subsidiary companies/ others. The land is registered in the name of the subsidiary companies/ others but is under the possession and control of the Company for development and sale of Real Estate Projects in terms of collaboration agreement with these companies.

18. The Company is engaged primarily in the business of Real Estate development and also running Hospitality Business. The Board for the purpose of resource allocation and assessment of segment performance focus of real estate and hospilality division However, there are no separate reportable segments as per criterion set out under Ind AS 108 on “Segment Reporting” in the Company.

19. The Company has opted for ‘composition scheme’ notified by the State of Haryana with effect from 1st April, 2014 under which VAT is payable at compounded lumpsum rate of 1% plus surcharge of 5%. Under the scheme, the Company is debarred from recovering the VAT paid from the customers. The VAT payable under the said scheme for the period 1.4.2014 to 30.06.2017 amounting to Rs.1126.36 Lakh (including interest) has been provided in the books of account of the Company and charged to project expenses of the related projects.

20. The Company has an investment of Rs.491.67 Lakh (as at 31 March, 2017: Rs.491.67 Lakh and as at 1st April,2016: Rs.491.67 Lakh) in a wholly owned subsidiary company in Sri Lanka by way of equity shares. The subsidiary company had filled an arbitration claim against the board of investment of Sri lanka (BOI) which has been withdrawn during the year and company gone for settlement. The board of Investment has terminated the agreements for development of integrated township in sri lanka between the subsidiary company and BOI. During the year, the management of the susidiary company written off all work in progress amounting Rs.1118.24 Lakh. Net worth of the company is Rs. (8.45) Lakh. Now the subsidiary does not have enough assets to redeem the said investment but management of company is of the opinion that they will able to redeem the said investment to the settlement and write down of investment is not required at this stage.

21. The disclosures of Employee Benefits as defined in Indian Accounting Standard 15 are given below:

A. Defined Benefit Plan

i) Gratuity: The employees’ gratuity fund scheme is a defined benefit plan. The Company provides gratuity for employees in India as per the Payment of Gratuity Act, 1972. Employees who are in continous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement/termination is the employees’ last drawn basic salary per month computed proportionately for 15 days salary multiplied by the number of years of service. The scheme is funded with an insurance company in the form of a qualifying insurance policy through the trustees of the trust. The present value of the obligation is determined on the basis of year end acturial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit seperately to build up the final obligation.

ii) Leave Encashment: Leave Encashment: The company also has a leave encashment scheme with defined benefits for its employees. The company makes provision for such liability in the books of accounts on the basis of year end acturial valuation. No fund has been created for this scheme.

X Risk Exposure

These plans typically expose the Company to actuarial risks such as :-

- Interest Rate Risk : the defined benefit obligation calculated uses a discount rate based on government bonds. If bond yields fall, the defined benefit obligation will tend to increase.

- Salary Inflation risk : higher than expected increases in salary will increase the defined benefit obligation.

- Demographic risks : this is the risk of volatility of results due to unexpected nature of decrements that include mortality attrition, disability and retirement. The effects of these decrement on the DBO depends upon the combination salary increase, discount rate, and vesting criteria and therefore not very straight forward. It is important not to overstate withdrawal rate because the cost of retirement benefit of a short caring employees will be less compared to long service employees.

- Asset Liability Mismatch : This will come into play unless the funds are invested with a term of the assets replicating the term of the liability.

- Investment Risk : For funded plans that rely on insurers for managing the assets, the value of assets certified by the insurer may not be the fair value of instruments backing the liability. In such cases, the present value of the assets is independent of the future discount rate. This can result in wide fluctuations in the net liability or the funded status if there are significant changes in the discount rate during the inter-valuation period.

- Liquidity Risk : Employees with high salaries and long durations or those higher in hierarchy, accumulate significant level of benefits. If some of such employees resign / retire from the company there can be strain on the cash flows.

- Legislative Risk/Regulatory Risk : Legislative risk is the risk of increase in the plan liabilities or reduction in the plan assets due to change in the legislation / regulation. The government may amend the Payment of Gratuity Act thus requiring the companies to pay higher benefits to the employees. This will directly affect the present value of the Defined Benefit Obligation and the same will have to be recognized immediately in the year when any such amendment is effective.

XI Leave Encashment

The leave obligations cover the Company’s liability for earned leaves. The amount of provision of Rs.12.38 Lakh (as at 31 March 2017: Rs.50.41 Lakh, 1st April 2016: Rs.67.46 Lakh) is presented as current, since the Company does not have an unconditional right to defer settlement for any of these obligations. However, based on past experience, the Company does not expect all employees to take the full amount of accrued leave or require payment within the next 12 months, therefore based on the independent actuarial report, only a certain amount of provision has been presented as current and remaining as non-current. The amount debited/ (recognized) for the year is:

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

B. Defined Contribution Plan

The Company makes provident fund contribution to defined contribution retirement benefit plan for its employees. Under the scheme, the company deposits an amount determined as a specified percentage of basic pay with the regional provident fund commissioner. Contribution to defined contribution plan recognized as expense for the year is Rs.106.52 Lakh (as at 31st March, 2017: Rs.143.88 Lakh and as at 1st April, 2016: Rs.184.21 Lakh)

23. Related Party Disclosures

As per Indian Accounting Standard-24, the disclosures of transactions with related parties are given below:

a) List of the related parties where control exist and related parties with whom transaction have taken place and description of their relationship: :

1 Wholly Owned Subsidiaries M/s Geo Connect Ltd.

M/s Housing & Construction Lanka Pvt. Ltd.

M/s Maestro Promoters Pvt. Ltd.

M/s Wrangler Builders Pvt. Ltd.

M/s Anjuman Buildcon Pvt. Ltd.

M/s A R Infrastructure Pvt. Ltd.

M/s A R Paradise Pvt. Ltd.

M/s Fenny Real Estates Pvt. Ltd.

M/s Third Eye Media Pvt Ltd.

M/s Sunrise Facility Management Pvt. Ltd.

M/s Aevee Iron & Steel Works Pvt. Ltd.

M/s Enchant Constructions Pvt. Ltd.

M/s Rishu Builtech Pvt. Ltd.

M/s Sonu Buildwell Pvt. Ltd.

M/s Andri Builders & Developers Pvt. Ltd.

M/s VS Infratown Pvt. Ltd.

M/s Cross Bridge Developers Pvt. Ltd.

M/s Identity Buildtech Pvt. Ltd.

M/s Shamia Automobiles Pvt. Ltd.

M/s Oriane Developers Pvt. Ltd.

2 Key Management Personnel (KMP’s)/ Mr. Deepak Ansal (Chairman & Managing Director)

Non Executive Director Mrs. Divya Ansal (Non Executive Director w.e.f. 14.09.2017)

Mr. Kushagr Ansal (Whole Time Director)

Mrs. Nisha Ahuja (Non Executive Director upto 13.09.2017)

Mr. Ashok Khanna (Non Executive Director)

Mr. Surrinder Lal Kapur (Non Executive Director)

Mr. Maharaj Kishen Trisal (Non Executive Director)

Mr. Karun Ansal (President)

Mr. KK Singhal (Executive Director upto 31.05.2017)

Mr. Sanjay Mehta (Chief Financial Officer)

Mr. SN Grover (Company Secretary)

3 Relatives of Key Management Personnel M/s Deepak Ansal-(H.U.F)- (Karta Mr. Deepak Ansal)

(With whom transaction taken place during the year) Mrs. Divya Ansal (Wife of Mr. Deepak Ansal)

Mrs. Megha Ansal (wife of Mr. Kushagr Ansal)

Mrs. Neha Ansal (wife of Mr. Karun Ansal)

Mr. Aryan Ansal (Son of Mr. Kushagr Ansal)

Ms. Ayesha Ansal (Daughter of Mr. Kushagr Ansal)

Mr. Veer Ansal (Son of Mr. Karun Ansal)

Ms. Geeta Singhal ( Wife of Mr. K K Singhal)

Mrs Jyotika Mehta (Wife of Mr. Sanjay Mehta)

Mrs. Chandani Mehta (Daughter of Mr. Sanjay Mehta)

4 Associates M/s Optus Corona Developers Pvt. Ltd.

5 Enterprise over which KMP and their relatives M/s Infinet India Ltd.

have significant influence (SI) M/s Akash Deep Portfolios Private Ltd.

M/s Suraj Kumari Charitable Trust M/s Ansal Clubs Pvt. Ltd.

M/s Sungrace Security Services Private Ltd.

M/s Snow White Cable Network Private Ltd.

M/s Global Consultant & Designers Private Ltd.

M/s Glorious Properties Private Ltd.

M/s Toptrack Infotech Private Ltd.

M/s Toptrack Real Estate Private Ltd.

M/s Ansal Land & Housing Private Ltd.

M/s Shree Satya Sai Construction and Development Private Ltd. M/S Ansal Rep (Construction) International Pvt. Ltd.

M/S Ansal Development Pvt. Ltd.

M/S Effective Investments Consultants Ltd.

M/S Ansal Theatres & Clubotels Pvt. Ltd.

M/s Ansal Buildwell Ltd.

M/s Khanna Watches Ltd.

6 Trust Employee Benefit Ansal Housing & Construction Ltd. Group Gratuity Trust

*The amount represents monies received against sale of flats for which revenue is recognised on percentage of completion basis on overall progress of the project.

**The amount represents money which is due for payments against cancellation of booked flats/plots for which revenue is derecognised on percentage of completion basis on overall progress of the project.

The Company has disclosed financial instruments such as trade receivables, unbilled revenue, cash and cash equivalents, loans, other financial assets, trade payables and other financial liabilities at carrying value because their carrying amounts represents the best estimate of the fair values.

(ii) Fair value hierarchy

The fair value of financial instruments have been classified into three categories depending on the input used in the valuation technique. The categories used are as follows:

Level 1: Quoted prices for identical instruments in an active market

Level 2: Directly or indirectly observable market input, other than Level 1 inputs

Level 3: Inputs which are not based on observable market date

B Financial Risk Management

The Company’s business operations are exposed to various financial risks such as liquidity risk, market risks, credit risk, interest rate risk, funding risk etc. The Company’s financial liabilities mainly includes borrowings taken for the purpose of financing company’s operations, trade payable and other financial liabilities. Financial assets mainly includes trade receivables, unbilled revenue, investment in subsidiaries/associates, loans, security deposit etc. The company is not exposed to foreign currency risk and the company have not obtained entered in forward contracts and derivative transactions.

The Company has a system based approach to financial risk management. The Company has internally instituted an integrated financial risk management framework comprising identification of financial risks and creation of risk management structure. The financial risks are identified, measured and managed in accordance with the Company’s policies on risk management. Key financial risks and mitigation plans are reviewed by the board of directors of the Company.

I Liquidity Risk

Liquidity risk is the risk that the Company may face to meet its obligations for financial liabilities. The objective of liquidity risk management is that the Company has sufficient funds to meet its liabilities when due. However, presently the Company is under stressed conditions, which has resulted in delays in meeting its liabilities. The Company, regularly monitors the cash outflow projections and arrange funds to meet its liabilities.

The following table summarises the maturity analysis of the Company’s financial liabilities based on contractual undiscounted cash outflows:

II Market risk

Market risk is the risk that future cash flows will fluctuate due to changes in market prices i.e. interest rate risk and price risk.

a. Interest rate risk

Interest rate risk is the risk that the future cash flows will fluctuate due to changes in market interest rates. The Company is mainly exposed to the interest rate risk due to its borrowings. The Company manages its interest rate risk by having balanced portfolio of fixed and variable rate borrowings. The Company does not enter into any interest rate swaps.

Interest rate sensitivity analysis

The exposure of the company’s borrowing to interest rate change at the end of the reporting periods are as follows :

b. Price risk

The Company has very limited exposure to price sensitive securities, hence price risk is not material.

III Credit Risk

Credit risk is the risk that customer or counter-party will not meet its obligation under the contract, leading to financial loss. The Company is exposed to credit risk for receivables from its real estate customers and refundable security deposits.

Customers credit risk is managed, generally by receipt of sale consideration before handing over of possession and/or transfer of legal ownership rights. The Company credit risk with respect to customers is diversified due to large number of real estate projects with different customers spread over different geographies.

Loans to related parties and project deposits

The company has loans to related parties and project deposits. The settlements of such instruments is linked to the completion of the respective underlying projects. Such financial assets are not impaired as on the reporting date.

Cash and Bank Balances

Credit risk from cash and bank balances is managed by the company’s finance department in accordance with the company’s policy.

24. Capital Management

For the purpose of capital management, capital includes equity capital, share premium and retained earnings. The Company maintains balance between debt and equity. The Company monitors its capital management by using a debt-equity ratio, which is total debt divided by total capital.

iii The company has recognised deferred tax assets on its unabsorbed depreciation and business losses carried forward. The Company has executed flat/plot sale agreements with the customers against the Company has also received advances, as disclosed in Note 24 of the financial statements. Revenue in respect of such sale agreements will get recognised in future years on percentage completion method. Based on these sale agreements, the company has reasonable certainty as on the date of the balance sheet, that there will be sufficient taxable income available to realize such assets in the near future. Accordingly, the Company has created deferred tax assets on its carried forward unabsorbed depreciation and business losses.

25. Events after the Reporting period

There are no events observed after the reported period which have an impact on the company operations.

26. Approval of the financial statements

The financial statements were approved for issue by Board of Directors on 29 May, 2018

27. Recent Accounting Pronouncement

a. In March 2018, the Ministry of Corporate Affairs notified Ind AS 115, “Revenue from Contracts with Customers”. It is applicable to the Company from 1 April 2018. Ind AS 115 requires an entity to recognise revenue to depict the transfer of promised goods or services to customers in amount that reflects the consideration in which entity expects to be entitled in exchange for those goods or services. It introduces a single comprehensive model of accounting for revenues arising from goods or services and will supresede the current revenue recoginition guidance and Ind AS 18 & Ind AS 11. It will effect the measurement, recoginition and disclosure of revenue. The Company is evaluating the requirements of the Ind AS 115 and its impact on financial statements.

b. On 28 March, 2018, the Ministry of Corporate Affairs has issued the Companies (Indian Accounting Standards) Amendment Rules, 2018 Containing Appendix B to Ind AS 21, foreign currency transactions and advances considerations which clarifies the date of the transactions for the purpose of determining the exchange rate to use an initial recognition of the related asset, expenses or income,when an entity has received or paid advance consideration in foreign currency. The effect on the financial statements is being evaluated by the company.

28. First time Ind AS adoption reconciliations:

I Disclosures as required by Indian Accounting Standard (Ind-AS) 101 First Time Adoption of Indian Accounting Standard (Ind AS):

These are Company’s first standalone financial statements prepared in accordance with Ind AS.

The Company has adopted Ind AS with effect from 1st April, 2017 with comparatives being restated. Accordingly, the impact of transition has been provided in the opening retained earnings as at 1 April 2016 and all the periods presented have been restated accordingly.

A. Exemption and Exceptions Availed A.1 Ind AS mandatory exceptions

The following mandatory exceptions have been applied in accordance with Ind AS 101 in preparing the financial statements:

a. Estimates:

An entity’s estimates in accordance with Ind AS at the date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with previous GAAP (after adjustment to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error. Ind AS estimates as at 1st April, 2016 are consistent with the estimates as at the same date made in conformity with previous GAAP. The Company made estimates for following items in accordance with Ind AS at the date of transition as these were not required under previous GAAP.

(i) Investments in equity instruments carried as FVTPL or FVOCI.

(ii) Investments in debt instruments carried as amortised cost.

(iii) Impairment of financial assets based on the expected credit loss model;

(iv) Discounting of advances

The estimates used by the Company to present the amounts in accordance with the Ind AS reflect conditions that existed at the date on transition to Ind AS.

b. Derecognition of financial assets and liabilities:

The Company has elected to apply the derecognition requirements for financial assets and financial liabilities as per Ind AS 109 prospectively for transactions occurring on or after the date of transition to Ind AS.

c. Classification and measurement of financial assets and liabilities:

Ind AS 101 requires an entity to assess classification and measurement of financial assets (investment in debt instrument) on the basis of the facts and circumstances that exist at the date of transition to Ind AS.

A.2 Ind AS optional exemptions

On first time adoption of Ind AS, Ind AS 101 allows certain exemptions from the retrospective application of certain requirements under Ind AS. The Company has availed the following exemptions:

a. Deemed Cost

The Company has opted to continue with the carrying values measured under the previous GAAP and used that carrying value as the deemed cost for property, plant and equipment on the date of transition.

Further, the Company had revalued certain buildings based on approved valuer as at 31st March, 1996 and had a balance of Rs. 606.21 Lakh in revaluation reserve on the date of transition. On transition, such revaluation reserve has been transferred to general reserve.

b. Investment in subsidiaries and associate

Ind AS 101, provides the option to measure investments in subsidiaries and associate at previous GAAP carrying amount as the deemed cost, if the Company in its separate financial statements have elected to account for its investments in subsidiaries and associate at cost. The Company has opted the previous GAAP carrying amount as deemed cost for investments in subsidiaries and associate.

c. Business Combination

Ind AS 101, provides the option to apply Ind AS 103 prospectively from the transition date or from a specific date prior to the transition date. This provides relief from full retrospective application that would require restatement of all business combinations prior to the transition date. The Company has opted to apply Ind AS 103 prospectively from the transition date and therefore, the balances have been restated accordingly on the transition date.

E. Explanation of material adjustments to Statement of Cash Flows for the year ended 31st March, 2017

There were no material differences between the statement of cash flows presented under Ind AS and the previous GAAP except due to various re-classification adjustments recorded under Ind AS and difference in the definition of cash and cash equivalents under these two GAAPs.

Note: As per Para (10) of Ind AS 101 requires an entity to reclassify items that it had recognised in accordance with previous GAAP as one type of asset, liability or component of equity, but are a different type of asset, liability or component of equity in accordance with Ind AS. Accordingly, assets and liabilities which are different types of assets and liabilities in Ind AS were reclassified as at transition date.

II Notes to First Time Adoption of Ind AS a Investment

The company has certain investments in the Equity shares and Mutual Funds of the company. Under previous GAAP, all the short term investments were recorded at lower of cost or fair value. For Long term Investments , it has to be measured at cost except there were permanent decline in the value . Under Ind AS Investments are required to be valued at fair value. The Company has classified these investments as fair value through Profit and Loss. The resultant imapct has been transferred to Profit and Loss/ Retained earnings.

b Trade Receivables/Sales

Under Ind AS, long-term trade receivables have been discounted at present value.

c Fair value of Financial Assets and Financial Liabilities

Under previous GAAP, financial assets and financial liabilities were carried at book value. Under Ind-AS 109, all financial assets and financial liabilities are required to be initially carried at fair value. The fair value changes are taken to the statement of profit and loss in respect of financial assets and financial liabilities carried at amortised cost.

d Borrowings/Trade Receivables/Inventory/Cost of Constructions/Revenue

Ind AS 109 requires transaction costs/prepaid interest incurred towards origination of borrowings to be deducted from the carrying amount of borrowings on initial recognition. These costs are recognised in the standalone Statement of Profit and Loss over the tenure of the borrowing as part of the interest expenses by applying the effective interest rate method. Under previous GAAP, these transaction costs were capitalised to the respective projects/charged to profit and loss . Accordingly, these transaction costs capitalised/charged off under previous GAAP have been adjusted to borrowings as at each Balance Sheet date. Accordingly, due to application of percentage completion method on these projects, trade receivables, inventory and revenue has been reduced.

e Deferred Tax

Indian GAAP requires deferred tax accounting using the income statement approach, which focuses on differences between taxable profits and accounting profits for the period. Ind AS 12, “Income taxes”, requires entities to account for deferred taxes using the balance sheet approach, which focuses on temporary differences between the carrying amount of an asset or liability in the Balance Sheet and its tax base. The application of Ind AS 12 has resulted in recognition of deferred tax on new temporary differences, which was not required under Indian GAAP. Deferred tax impact on above stated adjustments & exemptions opted by the Company have been recognised. f Retained Earnings Retained Earnings as at 1 April, 2016 has been adjusted consequent to Ind AS transition adjustments.

g Proposed Dividend

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

h Defined benefit liabilities

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

---

Mar 31, 2016

NOTES:

1 Terms/ Rights attached to equity shares

The Company has only one class of equity shares having a par value of Rs.10/- per share. Each holder of equity shares is entitled to one vote per share. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation of the Company, the holders of equity shares would be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of the equity shares held by the shareholders.

2 Term Loan from Bank referred above to the extent of:

- Rs. 34,00,00,000/- (Previous year: Rs. 15,00,00,000/-) are secured by way of mortgage of project land owned by the Company and its subsidiaries situated at Gurgaon and hypothecation of finished goods and receivables of Gurgaon Project, assignment of receivables of Alwar project, pledge of term deposit, pledge of shares of a subsidiary company and pledge of part of promoters shareholding in the Company.

3 Bank Overdraft referred above to the extent of:

- Rs. 4,90,32,808/- (Previous year: Nil) is secured by way of mortgage of unsold units owned by the Company in one of its project at Ghaziabad.

4. Term Loan from Corporate Bodies referred above to the extent of

- Rs. 1,90,55,81,078/- (Previous year: Rs. 2,12,03,06,038/-) are secured by way of mortgage of project land owned by the Company and its subsidiaries situated at Agra, Indore, Karnal, Meerut and Gurgaon, mortgage of building situated at Noida, mortgage of premises situated at Delhi owned by promoter directors and their families, assignment of receivables of Agra, Indore, Karnal, Meerut and certain Gurgaon projects and pledge of part of promoters shareholding in the Company.

- Rs. 7,87,77,478/- (Previous year: Nil) are secured by way of mortgage of Plot and Shops owned by the Promoters and the Company situated at Palam Vihar and Noida respectively.

- Rs. 93,75,00,000/- (Previous year: Rs. 80,00,00,000/-) are secured by way of mortgage of land owned by the Company and its subsidiaries situated at Yamunanagar and Amritsar and assignment of receivables of Yamunanagar Project.

- Rs. 8,18,00,000/- (Previous year: Rs. 2,98,00,000/-) are secured by way of mortgage of land owned by the Company and its subsidiaries situated at Jhansi and Ghaziabad and assignment of receivables of Jhansi and Ghaziabad Projects.

- Rs. 37,38,86,512/- (Previous year: Rs. 95,58,96,413/-) are secured by way of mortgage of land owned by the Company and its subsidiaries situated at Gurgaon, assignment of receivables of Gurgaon Projects, pledge of term deposit and pledge of shares of a subsidiary company and associate company.

a) In respect of certain assessment years upto 2003-04, the Delhi High Court has allowed the appeal of the Income Tax Department filed against the order of the Income Tax Appellate Tribunal, New Delhi, holding that the Notional Annual Letting Value of Flats/Commercial spaces etc. lying unsold in the closing stock is liable to tax under the head ''Income from House Property''. Based on the High Court Order, the tax department has created a demand of Rs.11,12,66,350/- (Previous year Rs.9,98,56,820/-) against the Company and a further liability of Rs.4,42,62,073/- (Previous year Rs.4,42,62,073/-) is estimated in respect of cases which are pending before the ITAT/High Court. The Company has filed special leave petition before the Supreme Court against the order of the Delhi High Court which has been admitted by the Supreme Court.

b) In respect of certain assessment years, Sales tax authorities have held that construction of properties by developer/ builder is liable to sales tax / VAT and have raised a demand of Rs.8,25,21,099/- (Previous year Rs.6,14,14,690/-) against the Company which are being disputed by the Company before the appellate authorities. Against these demands, the Company has paid Rs.4,82,57,190/- (Previous year Rs.3,39,04,340/-) under protest and the balance demand has been stayed by the authorities. The management is of the view that in case the Company becomes liable to pay sales tax /VAT, the same will be recovered from the customers to whom these properties have been sold and there is no contingent liability in this respect. The Company has started collecting VAT from Customers on provisional basis.

c) Uttar Pradesh Revenue Authorities have raised demands of Rs.6,91,70,308/- (Previous year Rs.4,93,20,128/-) towards deficiency in Stamp Duty on purchase of land/ registration of agreements. Against these demands, the Company has paid Rs.2,14,59,250/-(Previous year Rs.1,53,49,516/-) under protest and the balance demand has been stayed by the appellate authorities. Pending final decision in the matter, no provision has been considered necessary.

d) The Company has received a demand from the service tax department levying service tax of Rs.2,71,30,632/- (Previous year Rs.2,71,30,632/-) on transfer charges / administrative charges / processing charges recovered from the customers. The Company has filed an appeal with Custom, Excise and Service Tax Appellate Tribunal New Delhi which is pending. The demand has been stayed by the tribunal.

In respect of various claims against the Company disclosed above, it has been advised that it has a reasonably good case to succeed at various appellate authorities and hence does not expect any material liability when the cases are finally decided.

iii) In respect of block assessment for the period 1st April, 1989 to 10th February, 2000, Income Tax Appellate Tribunal (ITAT) has given full relief to the Company and rejected department''s ground of appeal, for tax claim of Rs.1,27,06,760/- (Previous year Rs.1,27,06,760/-). Further, in respect of assessment of certain years, demands had been raised by the Income Tax Department against the Company amounting to Rs.7,86,82,147/- (Previous year Rs.7,54,87,129/-) approx. by disallowing deduction under sections 80(IB) of the Income Tax Act, 1961 and other matters. The appeals filed by the Company have been decided in its favour by CIT(Appeals)/ ITAT/ High Court. The tax department has gone for further reference in the above matters to ITAT / High Court/ Supreme Court. The Management has been advised that it has a good case to succeed and no tax liability is likely to arise in these cases.

iv) In some of the cases, consideration received on sale of Plots/ Flats/ Apartments is less than the value adopted by the regulatory authorities for payment of stamp duty and would attract the provisions of Section 43CA of the Income Tax Act, 1961. The additional tax liability which may arise cannot be ascertained at this stage as tax assessments for the relevant years are in progress or the tax returns are not due for filing.

5 Capital and Other Commitments

i) Estimated amount of contracts remaining to be executed on capital account (net of advances) and not provided for Rs. Nil (Previous year Rs. Nil).

ii) The Company has entered into joint development agreements with owners of land for its construction and development. As stipulated under the agreements, the Company is required to share in area/ revenue from such development in exchange of undivided share in land as stipulated under the agreements. As on March 31, 2016 the Company has paid Rs.83,19,34,181/-(Previous year Rs.91,46,28,099/-) as deposits/ advances against the joint development agreements. Further, the Company has given advances for purchase of land. Under the agreements executed with the land owners, the Company is required to make further payments based on terms/ milestones stipulated in the agreement. The future committment in respect of purchase of land, to the extent quantifiable, amounts to Rs. 2,25,00,000/- (Previous year Rs. 7,00,00,000/-).

6 Inventory of Land includes Rs.12,67,38,752/- (Previous year Rs.13,48,23,786/-) acquired by subsidiary companies/ others. The land is registered in the name of the subsidiary companies/ others but is under the possession and control of the Company for development and sale of Real Estate Projects in terms of collaboration agreement with these companies.

7 The Company is engaged primarily in the business of Real Estate development and also running Hospitality Business. However, there are no separate reportable segments as per criterion set out under Accounting Standard 17 on Segment Reporting in the Company. The Company is operating in India, hence there is no reportable geographical segment.

8 The Company has not received intimation from suppliers regarding the status under Micro, Small & Medium Enterprises Development Act, 2006 and hence disclosure, if any, relating to the amounts unpaid at the yearend together with interest payable as required under the said Act has not been given.

33 The managerial remuneration paid to the Chairman and Managing Director (CMD) of the Company during the year is in excess of the limit provided in Section 197 read with Schedule-V of the Companies Act, 2013 by Rs.1,11,79,001/- due to the inadequacy of the profit for the year computed in the manner referred to in Section 198 of the Companies Act, 2013. The Company has applied to the Central Government under Section 197(3) of the Companies Act, 2013 for approval of excess remuneration paid to the CMD. The approval of Central Government is awaited.

9 Operating Lease

The Company has taken various residential / commercial premises under cancelable operating leases. These leases are normally renewable on expiry. The rental expenses in respect of operating leases amounting to Rs. 5,90,49,443/- (previous year Rs.5,85,53,873/-) has been charged to the statement of profit and loss/ project in progress.

10 The disclosures of Employee Benefits as defined in Accounting Standard 15 are given below:

A. Defined Benefit Plan

i) Gratuity: The employees'' gratuity fund scheme is a defined benefit plan. The scheme is funded with an insurance company in the form of a qualifying insurance policy. The present value of the obligation is determined on the basis of year end actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

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

NOTES:

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

B. Defined Contribution Plan

The Company makes provident fund contribution to defined contribution retirement benefit plan for its employees. Under the scheme, the company deposits an amount determined as a specified percentage of basic pay with the regional provident fund commissioner. Contribution to defined contribution plan recognized as expense for the year is Rs.1,84,21,103/- (Previous year Rs.2,17,46,722/-)

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Mar 31, 2015

A) In respect of certain assessment years upto 2003-04, the Delhi High Court has allowed the appeal of the Income Tax Department filed against the order of the Income Tax Appellate Tribunal, New Delhi, holding that the Notional Annual Letting Value of Flats/Commercial spaces etc. lying unsold in the closing stock is liable to tax under the head 'Income from House Property'. Based on the High Court Order, the tax department has created a demand of Rs, 9,98,56,820/- against the Company and a further liability of Rs, 4,42,62,073/- is estimated in respect of cases which are pending before the ITAT/High Court. The Company has fled special leave petition before the Supreme Court against the order of the Delhi High Court which has been admitted by the Supreme Court.

b) In respect of certain assessment years, Sales tax authorities have held that construction of properties by developer/ builder is liable to sales tax / VAT and have raised a demand of Rs, 10,25,86,168/- against the Company which are being disputed by the Company before the appellate authorities. Against these demands, the Company has paid Rs, 4,19,04,340/- under protest and the balance demand has been stayed by the authorities. The management is of the view that in case the Company becomes liable to pay sales tax /VAT, the same will be recovered from the customers to whom these properties have been sold.

c) Uttar Pradesh Revenue Authorities have raised demands of Rs, 4,93,20,128/- towards deficiency in Stamp Duty on purchase of land / registration of agreements. Against these demands, the Company has paid Rs, 1,53,49,516/- under protest and the balance demand has been stayed by the appellate authorities. Pending final decision in the matter, no provision has been considered necessary.

d) The Company has received a demand from the service tax department levying service tax of Rs, 2,71,30,632/- lacs on transfer charges / administrative charges / processing charges recovered from the customers. The Company has fled an appeal with Custom, Excise and Service Tax Appellate Tribunal New Delhi which is pending. The demand has been stayed by the tribunal.

In respect of various claims against the Company disclosed above, it has been advised that it has a reasonably good case to succeed at various appellate authorities and hence does not expect any material liability when the cases are finally decided.

i) In respect of block assessment for the period 1st April, 1989 to 10th February, 2000, Income Tax Appellate Tribunal (ITAT) has given full relief to the Company and rejected department's ground of appeal, for tax claim of Rs,1,27,06,760/- (Previous year Rs,1,27,06,760/-). Further, in respect of assessment of certain years, demands had been raised by the Income Tax Department against the Company amounting to Rs, 7,54,87,129/- (Previous year Rs,11,97,49,202/-) approx by disallowing deduction under sections 80(IB) of the Income Tax Act, 1961 and other matters. The appeals filed by the Company have been decided in its favor by CIT(Appeals)/ ITAT/ High Court. The tax department has gone for further reference in the above matters to ITAT / High Court/ Supreme Court. The Management has been advised that it has a good case to succeed and no tax liability is likely to be arise in these cases.

1. Capital and Other Commitments

i) Estimated amount of contracts remaining to be executed on capital account (net of advances) and not provided for Rs, Nil (Previous year Rs, 33,54,981/-).

ii) The Company has entered into joint development agreements with owners of land for its construction and development. As stipulated under the agreements, the Company is required to share in area/ revenue from such development in exchange of undivided share in land as stipulated under the agreements. As on March 31, 2015 the Company has paid Rs, 91,46,28,099/- (Previous year Rs, 2,08,78,59,709/-) as refundable deposits against the joint development agreements. Further, the Company has given advances for purchase of land. Under the agreements executed with the land owners, the Company is required to make further payments based on terms/ milestones stipulated in the agreement. The future commitment in respect of purchase of land, to the extent quantifiable, amounts to Rs, 7,00,00,000/-.

2. Inventory of Land includes Rs, 13,48,23,786/- (Previous year Rs, 11,85,57,755/-) acquired by subsidiary companies. The land is registered in the name of the subsidiary companies/ others but is under the possession and control of the Company for development and sale of Real Estate Projects in terms of collaboration agreement with these companies.

3. The Company is engaged primarily in the business of Real Estate development and also running Hospitality Business. However, there are no separate reportable segments as per criterion set out under Accounting Standard 17 on Segment Reporting in the Company. The Company is operating in India, hence there is no reportable geographical segment.

4. The Company has not received intimation from suppliers regarding the status under Micro Small Medium Enterprises Development Act, 2006 and hence disclosure, if any, relating to the amounts unpaid at the yearend together with interest payable as required under the said Act has not been given.

5. Expenditure related to Corporate Social Responsibility as per section 135 of Companies Act, 2013 read with Schedule VII amounts to Rs,1,10,25,000/- 33 The managerial remuneration paid to the Managing Director of the Company during the year is in excess of the limit provided in Section 197 read with Schedule-V of the Companies Act, 2013 by Rs, 84,57,019/- due to the inadequacy of the profit for the year computed in the manner referred to in Section 198 of the Companies Act, 2013. The Company has decided to apply to the Central Government under Section 197(10) of the Companies Act, 2013. 34 In respect of the restaurant division, the Company has closed down three restaurants and is currently operating two restaurants out of which one restaurant is also intended to be closed in the near future. The restaurants which have been closed down are proposed to be leased out along with all the fixed assets and negotiations with the parties are in final stages. The carrying amount of fixed assets (including premises) of the restaurants which have been closed down amounts to Rs, 3,37,98,132/- . In the opinion of the management, there is no impairment in the value of fixed assets of restaurants as the same are proposed to be leased out.

6. Operating Lease

The Company has taken various residential / commercial premises under cancelable operating leases. These leases are normally renewable on expiry. The rental expenses in respect of operating leases amounting to Rs, 5,85,53,873/- (previous year Rs, 4,76,85,710/-) has been charged to the statement of profit and loss/ project in progress.

7. The disclosures of Employee Benefits as defend in Accounting Standard 15 are given below:

A. Defend Benefit Plan

i) Gratuity: The employees' gratuity fund scheme is a defend benefit plan and is managed by LIC. The present value of the obligation is determined on the basis of year end actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. ii) Leave Encashment: The Company also has a Leave Encashment Scheme with defend benefits for its employees. The Company makes provision for such liability in the books of accounts on the basis of year end actuarial valuation. No fund has been created for this scheme.

NOTES:

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

B. Defend Contribution Plan

The Company makes provident fund contribution to defend contribution retirement benefit plan for its employees. Under the scheme, the Company deposits an amount determined as a specified percentage of basic pay with the regional Provident Fund Commissioner. Contribution to defend contribution plan recognized as expense for the year is Rs, 2,17,46,722/- (Previous year Rs, 1,93,43,389/-).

9. The brief particulars other than quantitative details relating to Hospitality Division are given below:

(a) Income from Food and Beverage and Other Services for the year include income from Wine and Liquor Rs,1,29,57,622/- (Previous Year Rs,1,95,50,191/-).

10. Previous year figures:

Previous Year figures have been regrouped/rearranged wherever considered necessary, to make them comparable with Current Year's figures.

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Mar 31, 2014

1. Terms/ Rights attached to equity shares

The Company has only one class of equity shares having a par value of Rs. 10/- per share. Each holder of equity shares is entitled to one vote per share. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation of the Company, the holders of equity shares would be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of the equity shares held by the shareholders.

2. The Company has increased its Authorized Share Capital from Rs. 50 crores to Rs. 100 crores by amending the Capital Clause of the Memorandum of Association of the Company with the consent of the shareholders by means of Postal Ballot on 2nd April, 2013.

3. During the year, pursuant to approval accorded by the Shareholders of the Company vide resolution dated 2nd April, 2013 through Postal Ballot, the Company has made the allotment of 3,95,90,552 bonus equity shares on 12th April, 2013 in the ratio of 2:1 (two new bonus equity shares of Rs. 10/- each for every one existing equity share of Rs. 10/- each held in the Company) to the eligible shareholders of the Company whose names appeared in the Register of Members / Beneficial Owners of the Company as on record date i.e. 12th April, 2013.

4. Equity Shares bought back as per section 77A of Companies Act, 1956 during five years preceding 31st March, 2014

* 1,78,272 Equity Shares bought back during the financial year 2011-12

* 3,97,296 Equity Shares bought back during the financial year 2012-13

5 NOTES:

Term Loan from Bank referred above to the extent of:

* Rs. Nil/- (Previous year: Rs. 3,29,99,998/-) are secured by way of mortgage of project land owned by the Company and its subsidiaries situated at Zirakpur and Meerut and hypothecation of finished goods and receivables of Zirakpur, Meerut and Agra projects.

6. Term Loan from Corporate Bodies referred above to the extent of:

* Rs. 60,00,00,000/- (Previous year: Rs. 85,00,00,000/-) are secured by way of mortgage of land/ building owned by the Company and its subsidiaries situated at Ghaziabad, Mumbai and Agra, mortgage of land/ premises owned by promoter directors and their families situated at Gurgaon and Mumbai, pledge of part of promoters shareholding in the Company and pledge of shares of subsidiary Companies.

* Rs. 1,91,22,13,285/- (Previous year: Rs. 96,48,86,085/-) are secured by way of mortgage of project land owned by the Company and its subsidiaries situated at Agra, Indore, Karnal, Meerut and Gurgaon, mortgage of building situated at Noida, mortgage of premises situated at Delhi owned by promoter directors and their families, assignment of receivables of Agra, Indore, Rewari, Karnal, Meerut and certain Gurgaon projects and pledge of part of promoters shareholding in the Company.

* Rs. Nil (Previous year: Rs. 5,62,49,998/-) are secured by way of mortgage of land owned by the Company and its subsidiaries situated at Yamunanagar location and assignment of receivables of Yamunanagar Project.

* Rs. 10,98,00,000/- (Previous year: Rs. 12,98,00,000/-) are secured by way of mortgage of land owned by the Company and its subsidiaries situated at Jhansi and assignment of receivables of Jhansi Project.

* Rs. 1,15,00,00,000/- (Previous year: Rs. 40,00,00,000/-) are secured by way of mortgage of land owned by the Company and its subsidiaries situated at Gurgaon, assignment of receivables of Gurgaon Projects and pledge of shares of a subsidiary company and associate company.

7 Vehicle/ Equipment Loan from Bank/ Corporate Bodies referred above are secured by way of hypothecation of respective vehicle/ construction equipment.

8. NOTES:

8 Working Capital Loans of Rs. 61,27,08,061/- (Previous year: Rs. 75,64,35,617/-) from Scheduled Banks are secured by charge over stocks of materials, unsold finished stock, construction work-in-progress, book-debts of the Company and have been guaranteed by promoter directors.

9. NOTES:

9.1 The Advances from Customers referred above includes Rs. 12,08,71,393/- (Previous year: Rs. 21,76,44,087/-) received from subsidiary Companies and Rs. 60,00,000/- (Previous year: Rs. 60,00,000/-) from other related parties.

9.2 The Other payables referred above includes statutory dues, book overdraft, commission payable to directors.

9.3 Other payables also includes Rs. 12,11,52,223/- (Previous year: Rs. 14,08,64,028/-) payable to a subsidiary Companies.

10. During the Financial Year 2013-2014, the Company had acquired equity shares of two new companies i.e. Shamia Automo- biles Pvt. Ltd. on 28.09.2013 and Oriane Developers Pvt. Ltd. on 02.01.2014 and consequently these companies have become Wholly Owned Subsidiaries of the Company.

11 During the Year, the Company has acquired 49% equity shares of M/s Optus Corona Developers Pvt. Ltd. and consequently it has become Associate of the Company.

* Fixed Deposits with Banks includes deposits of Rs. 32,36,221/- (Previous year Rs. 2,34,090/-) with maturity of more than 12 months.

NOTE:

12. Prior Period Adjustment includes remuneration pertaining to earlier years of President (Projects) of the Company amounting to Rs. 1,39,92,448/- which has been readjusted as per the Central Government approval under section 314(1B) of Companies Act, 1956.

CONTINGENT LIABILITIES AND COMMITMENTS

(TO THE EXTENT NOT PROVIDED FOR)

As at 31st As at 31st March, 2014 March, 2013 13. Contingent Liabilities

i) Guarantees

* Guarantees given by the Company to Banks/Financial Institutions against credit facilities extended to third parties. (to the extent of outstanding Loan amount) 19,36,88,136 38,23,95,136

ii) Claims against the Company not acknowledged as Debts

* Income Tax/ Wealth Tax demand being disputed by the Company 13,37,79,171 3,09,66,048

* Sales Tax demand being disputed by the Company 7,11,44,240 3,89,08,619

* Stamp Duty demand being disputed by the Company 10,49,21,503 9,01,46,746

* Service Tax demand being disputed by the Company 2,71,30,632 2,71,30,632

* Claims by customers for refund of amount deposited/ Compensation/Interest (to the extent quantifiable) 9,30,59,797 6,84,62,283

* Other Claims against the Company not acknowledged as debts 66,78,040 66,78,040

63,04,01,518 64,46,87,504

iii) In respect of block assessment for the period 1st April, 1989 to 10th February, 2000, Income Tax Appellate Tribunal (ITAT) has given full relief to the Company and rejected department''s ground of appeal, for tax claim of Rs. 1,27,06,760/- (Previous year Rs. 1,27,06,760/-). Further, in respect of assessment of certain years, demands had been raised by the Income Tax Department against the Company amounting to Rs. 11,97,49,202/- (Previous year Rs. 5,97,39,075/-) approx by disallowing deduction under sections 80(IB) of the Income Tax Act, 1961 and other matters. The appeals filed by the Company have been decided in its favour by CIT(Appeals)/ ITAT/ High Court. The tax department has gone for further reference in the above matters to ITAT / High Court/ Supreme Court. The Management has been advised by the legal counsel that it has a good case to succeed and no tax liability is likely to arise in these cases.

14. Capital and Other Commitments

i) Estimated amount of contracts remaining to be executed on capital account (net of advances) and not provided for Rs. 33,54,981/- (Previous year Rs. 46,96,654/-)

ii) The Company has entered into joint development agreements with owners of land for its construction and development. As stipulated under the agreements, the Company is required to share in area/ revenue from such development in exchange of undivided share in land as stipulated under the agreements. As on March 31,2014 the Company has paid Rs. 2,08,78,59,709/- (Previous year Rs. 40,31,67,714/-) as refundable deposits against the joint development agreements. Further, the Company has given advances for purchase of land. Under the agreements executed with the land owners, the Company is required to make further payments based on terms/ milestones stipulated in the agreement.

15. Inventory of Land includes Rs. 11,85,57,755/- (Previous year Rs. 14,61,80,262/-) acquired by subsidiary companies. The land is registered in the name of the subsidiary companies but is under the possession and control of the Company for development and sale of Real Estate Projects in terms of collaboration agreement with these companies.

16. The Company is engaged primarily in the business of Real Estate development and also running Hospitality Business. However, there are no separate reportable segments as per criterion set out under Accounting Standard 17 on Segment Reporting in the Company. The Company is operating in India, hence there is no reportable geographical segment.

17. The Company has not received intimation from suppliers regarding the status under Micro Small Medium Enterprises Development Act, 2006 and hence disclosure, if any, relating to the amounts unpaid at the year end together with interest payable as required under the said Act has not been given.

18. Operating Lease

The Company has taken various residential / commercial premises under cancelable operating leases. These leases are normally renewable on expiry. The rental expenses in respect of operating leases amounting to Rs. 4,76,85,710/- (previous year Rs. 4,71,26,505/-) has been charged to the statement of profit and loss/ project in progress.

19. The disclosures of Employee Benefits as defined in Accounting Standard 15 are given below:

A. Defined Benefit Plan

i) Gratuity: The employees'' gratuity fund scheme is a defined benefit plan and is managed by LIC. The present value of the obligation is determined based on details received from LIC using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit seperately to build up the final obligation.

ii) Leave Encashment: The company also has a leave encashment scheme with defined benefits for its employees. The company makes provision for such liability in the books of accounts on the basis ofyear end acturial valuation. No fund has been created for this scheme.

NOTES:

20. The estimates of rate of esclation in salary considered in acturial valuation, take into account inflation, seniority, promotion and other relevant factors including supply and demand in employment market.

A. Defined Contribution Plan

The Company makes provident fund contribution to defined contribution retirement benefit plan for its employees. Under the scheme, the company deposits an amount determined as a specified percentage of basic pay with the regional provident fund commissioner. Contribution to defined contribution plan recognized as expense for the year is Rs. 1,93,43,389/- (Previous year Rs. 1,23,94,752/-)

21. The brief particulars other than quantitative details relating to Hospitality Division are given below:

(a) Income from Food and Beverage and Other Services for the year include income from Wine and Liquor Rs. 1,95,50,191/- (Previous Year Rs. 2,06,58,243/-).

22. Previous year figures:

Previous Year figures have been regrouped/rearranged wherever considered necessary, to make them comparable with Current Year''s figures.

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Mar 31, 2013

NOTE 1 : CONTINGENT LIABILITIES AND COMMITMENTS (TO THE EXTENT NOT PROVIDED FOR)

1.1 Contingent Liabilities

i) Guarantees

- Guarantees given by the Company to Banks/

Financial Institutions against credit facilities extended to third parties. (to the extent of outstanding Loan amount) 38,23,95,136 49,23,95,136

ii) Claims against the Company not acknowledged as Debts

- Income Tax/ Wealth Tax demand being disputed by the Company 3,09,66,048 4,65,09,090

- Sales Tax demand being disputed by the Company 3,89,08,619 2,46,85,005

- Stamp Duty demand being disputed by the Company 9,01,46,746 9,61,46,726

- Service Tax demand being disputed by the Company 2,71,30,632 2,71,30,632

- Claims by customers for refund of amount deposited/

Compensation/ Interest (to the extent quantifable) 6,84,62,283 5,51,86,256

- Other Claims against the Company not acknowledged as debts 66,78,040 68,93,124

64,46,87,504 74,89,45,969

iii) In respect of block assessment for the period 1st April, 1989 to 10th February, 2000, Income Tax Appellate Tribunal (ITAT ) has given full relief to the Company and rejected department''s ground of appeal, for tax claim of Rs.1,27,06,760/- (Previous year Rs.1,27,06,760/-). Further, in respect of assessment of certain years, demands had been raised by the Income Tax Department against the Company amounting to Rs. 5,97,39,075/- (previous year Rs. 7,25,24,050/-) approx by disallowing deduction under sections 80(IB) of the Income Tax Act, 1961. The appeals fled by the Company have been decided in its favour by CIT(Appeals)/ ITAT. The tax department has gone for further reference in the above matters to ITAT / High Court. The Management has been advised by the legal counsel that it has a good case to succeed and no tax liability is likely to be arise in these cases.

iv) In respect of some earlier years the Delhi High Court has allowed the appeal of the Income Tax Department, fled against the order of Income Tax Appellate Tribunal, New Delhi, holding that the Notional Annual Letting Value of Flats/Commercial spaces etc lying unsold in the stock in trade of the company is taxable under the head Income from House Property. The estimated income tax liability in respect of such cases pending at various forums is Rs. 7,61,50,665/- (excluding interest, penalty etc). The company has fled special leave petition before Supreme Court against the order of Delhi High Court. The Supreme Court has accepted the Special Leave Petition of the Company. The Management has been advised by the legal counsel that it has a good case to succeed and no tax liability is likely to be arise in these cases.

1.2 Capital and Other Commitments

i) Estimated amount of contracts remaining to be executed on capital account (net of advances) and not provided for Rs. 46,96,654/- (Previous year Rs. 26,21,205/-)

ii) The Company has entered into joint development agreements with owners of land for its construction and development. Under the agreements, the Company is required to share in area/ revenue from such development in exchange of undivided share in land as stipulated under the agreements. As on March 31,2013 the Company has paid Rs. 40,31,67,714/- (Previous year Rs. 32,19,43,125/-) as refundable deposits against the joint development agreements. Further, the Company has given advances for purchase of land. Under the agreements executed with the land owners, the Company is required to make further payments based on terms/ milestones stipulated in the agreement.

2 In respect of projects commenced on or after 1st April, 2012 and the projects commenced before that date but where revenue was not recognised in earlier years, the Company has followed revenue recognition policy in accordance with the Guidance Note on Accounting for Real Estate transactions (Revised 2012) issued by the Institute of Chartered Accountants of India. However, none of the projects to which Guidance Note applies has reached revenue recognition stage during the year. The impact on the current year revenues and profts, had the Company followed its earlier revenue recognition policy in respect of such projects, has not been quantifed.

3 Inventory of Land includes Rs.14,61,80,262/- (Previous year Rs.15,03,32,469/-) acquired by subsidiary companies. The land is registered in the name of the subsidiary companies but is under the possession and control of the Company for development and sale of Real Estate Projects in terms of collaboration agreement with these companies.

4 The Company is engaged primarily in the business of Real Estate development and also running Hospitality Business. However, there are no separate reportable segments as per criterion set out under Accounting Standard 17 on Segment Reporting in the Company. The Company is operating in India, hence there is no reportable geographical segment.

5 The Company has not received intimation from suppliers regarding the status under Micro Small Medium Enterprises Development Act, 2006 and hence disclosure, if any, relating to the amounts unpaid at the year end together with interest payable as required under the said Act has not been given.

6 Operating Lease

The Company has taken various residential / commercial premises under cancelable operating leases. These leases are normally renewable on expiry. The rental expenses in respect of operating leases amounting to Rs. 4,71,26,505/- (previous year Rs. 5,53,13,402/-) has been charged to the statement of proft and loss.

7 The disclosures of Employee Benefts as defned in Accounting Standard 15 are given below: A. Defned Beneft Plan

i) Gratuity: The employees'' gratuity fund scheme is a defned beneft plan and is managed by LIC. The present value of the obligation is determined based on details received from LIC using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee beneft entitlement and measures each unit seperately to build up the fnal obligation.

ii) Leave Encashment: The company also has a leave encashment scheme with defned benefts for its employees. The company makes provision for such liability in the books of accounts on the basis of year end acturial valuation. No fund has been created for this scheme.

NOTES:

8.1 The estimates of rate of esclation in salary considered in acturial valuation, take into account infation, seniority, promotion and other relevant factors including supply and demand in employment market.

B. Defned Contribution Plan

The Company makes provident fund contribution to defned contribution retirement beneft plan for its employees. Under the scheme, the company deposits an amount determined as a specifed percentage of basic pay with the regional provident fund commissioner. Contribution to defned contribution plan reconized as expense for the year is Rs.1,23,94,752/- (Previous year Rs.1,11,57,053/-)

9 Related Party Disclosures

As per Accounting Standard- 18, the disclosures of transactions with related parties are given below:

a) Names of the related parties where control exists and related parties with whom transactions have taken place and relationships:

1. Wholly Owned Subsidiaries M/s Geo Connect Ltd.

M/s Housing & Construction Lanka Pvt. Ltd.

M/s Maestro Promoters Pvt. Ltd.

M/s Wrangler Builders Pvt. Ltd.

M/s Anjuman Buildcon Pvt. Ltd.

M/s A R Infrastructure Pvt. Ltd.

M/s A R Paradise Pvt. Ltd.

M/s Fenny Real Estates Pvt. Ltd.

M/s Third Eye Media Pvt Ltd.

M/s Sunrise Facility Management Pvt. Ltd.

M/s Aevee Iron & Steel Works Pvt. Ltd.

M/s Enchant Constructions Pvt. Ltd.

M/s Rishu Builtech Pvt. Ltd.

M/s Sonu Buildwell Pvt. Ltd.

M/s Andri Builders & Developers Pvt. Ltd. (w.e.f. 31.08.2012)

M/s VS Infratown Pvt. Ltd. (w.e.f. 04.10.2012)

M/s Cross Bridge Developers Pvt. Ltd. (w.e.f. 01.12.2012)

M/s Identity Buildtech Pvt. Ltd. (w.e.f. 18.12.2012)

2. Key Management Personnel Mr. Deepak Ansal (Chairman & Managing Director)

Mr. Kushagr Ansal (Whole Time Director) Mr. Karun Ansal (President)

3. Relatives of Key Management Personnel Ms. Divya Ansal (wife of Mr. Deepak Ansal)

M/s Deepak Ansal-(H.U.F)- (Karta Mr. Deepak Ansal) Ms. Megha Ansal (wife of Mr. Kushagr Ansal) Ms. Neha Ansal (wife of Mr. Karun Ansal) Mr. Aryan Ansal (Son of Mr. Kushagr Ansal)

4. Associates

4.1 Enterprise in which Key Management personnel having substantial interest M/s Infnet India Ltd.

M/s Akash Deep Portfolios Private Ltd.

M/s Suraj Kumari Charitable Trust

M/s Ansal Clubs Pvt. Ltd.

M/s Sungrace Security Services Private Ltd.

M/s Snow White Cable Network Private Ltd.

M/s Global Consultant & Designers Private Ltd.

M/s Glorious Properties Private Ltd.

M/s Toptrack Infotech Private Ltd.

M/s Toptrack Real Estate Private Ltd.

M/s Ansal Land & Housing Private Ltd.

M/s Shree Satya Sai Construction and Development Private Ltd.

4.2 Enterprises in which relative of Key Management personnel having substantial interest M/s Ansal Buildwell Ltd.

10 Previous year fgures:

Previous Year fgures have been regrouped/rearranged wherever considered necessary, to make them comparable with Current Year''s fgures.

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Mar 31, 2012

1.1 Terms/ Rights attached to equity shares

The Company has only one class of equity shares having a par value of Rs.10/- per share. Each holder of equity shares is entitled to one vote per share. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation of the Company, the holders of equity shares would be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of the equity shares held by the shareholders.

2.2 On 30.10.2010, the Company issued 12,00,000 warrants of Rs. 70/- each to the Promoters of the Company. Each warrant was convertible at a premium of Rs.60/- per share of face value of Rs.10/- each at the option of the holder within 18 months from date of allotment. Out of the 12,00,000 warrants issued, the company allotted 10,00,000 equity shares on exercise of part op- tion by conversion of warrants at a premium of Rs. 60/- per share of face value of Rs.10/- each to the Promoters on 08.08.2011. On 10.01.2012, the Promoters surrendered the balance 2,00,000 warrants which were then cancelled by the Company and Rs. 35,00,000/- received against these warrants was forfeited.

NOTE:

2.1 The Board of Directors of the Company, in the meeting held on 02.12.2011, approved buy back of 25,00,000 equity shares of Rs. 10/- each at maximum price of Rs. 45/- per share for an amount not exceeding Rs. 11,25,00,000/-.

Persuant to the buy back scheme, the Company during the year ending 31st March, 2012 purchased 1,78,272 equity shares of Rs. 10/- each at a cost of Rs. 75,80,530/-. Out of this amount Rs. 17,82,720/- has been set off against issued, subscribed and paid up share capital and the balance of Rs. 57,97,810/- has been debited to the securities premium account. The Company has extinguished 1,16,848 equity shares upto March 31,2012 and the remaining 61,424 equity shares have been extinguished subsequent to the close of the year.

In terms of Section 77AA of the Companies Act, 1956, an amount of Rs. 17,82,720/- has been transferred to Capital Redemption Reserve.

NOTES:

3.1 Term Loan from Bank referred above to the extent of:

- Rs. 9,98,00,000/- are secured by way of mortgage of project land owned by the Company and its subsidiaries situated at Zirakpur & Meerut and hypothecation of finished goods & receivables of Zirakpur, Meerut and Agra projects.

3.2 Term Loan from Corporate Bodies referred above to the extent of:

- Rs. 65,00,00,000/- are secured by way of mortgage of land/ building owned by the Company and its subsidiaries situated at Ghaziabad, Mumbai and Agra, mortgage of land/ premises owned by promoter directors and their families situated at Gurgaon and Mumbai, pledge of part of promoters shareholding in the Company and pledge of shares of subsidiary Companies.

- Rs. 82,50,24,461/- are secured by way of mortgage of project land owned by the Company and its subsidiaries situated at Agra, Indore and Meerut, mortgage of building situated at Noida, mortgage of premises situated at Delhi owned by promoter directors and their families, assignment of receivables of Agra, Meerut and Indore projects and pledge of part of promoters shareholding in the Company.

- Rs. 11,25,00,000/- are secured by way of mortgage of land owned by the Company and its subsidiaries situated at Yamunanagar, assignment of receivable of Yamunanagar Project.

3.3 Vehicle/ Equipment Loan from Bank/ Corporate Bodies referred above are secured by way of hypothecation of respective vehicle/ construction equipment.

3.4 Term Loan from Bank referred above to the extent of:

Rs. 9,98,00,000 have been guaranteed by the promoter directors.

Rs. 9,98,00,000 have been guaranteed by the subsidiary companies.

3.5 Term Loan from Corporate Bodies referred above to the extent of:

Rs. 1,58,75,24,461 have been guaranteed by the promoter directors.

Rs. 76,25,00,000 have been guaranteed by the subsidiary companies

Rs. 65,00,00,000 have been guaranteed by the relatives of promoter directors.

3.6 Public Deposits referred above to the extent of:

Rs. 21,83,32,000 have been guaranteed by the chairman and managing director.

NOTES:

4.1 Working Capital Loans from Scheduled Banks are secured by charge over stocks of materials, unsold finished stock, construction work-in-progress, book-debts of the Company.

4.2 Term Loan from Corporate Bodies are secured by way of mortgage of project land owned by Collaborator at Gurgaon and extension of mortgage of building located at Noida.

4.3 Working Capital Loan referred above to the extent of Rs. 67,28,39,669/- have been guaranteed by promoter directors.

4.4 Term Loan from Corporate Bodies referred above to the extent of Rs. 20,00,00,000/- have been guaranteed by promoter directors.

NOTES:

5.1 The Advances from Customers referred above includes Rs. 9,67,65,014/- received from subsidiary Companies.

5.2 The Other payables referred above includes statutory dues, book overdraft, commission payable to directors.

5.3 Other payables also includes Rs. 11,01,07,354/- payable to subsidiary Companies.

NOTE 6 : CONTINGENT LIABILITIES AND COMMITMENTS (TO THE EXTENT NOT PROVIDED FOR)

A) Contingent Liabilities

i) Guarantees

- Guarantees given by the Company to Banks/

Financial Institutions against credit facilities extended to third parties. (to the extent of outstanding Loan amount) 49,23,95,136 36,23,95,136

ii) Claims against the Company not acknowledged as Debts

- Income Tax/ Wealth Tax demand being disputed by the Company 4,65,09,090 4,46,25,110

- Sales Tax demand being disputed by the Company 2,46,85,005 8,37,77,000

- Stamp Duty demand being disputed by the Company 9,61,46,726 9,78,28,068

- Service Tax demand being disputed by the Company 2,71,30,632 2,71,30,632

- Claims by customers for refund of amount deposited/ Compensation/ Interest 5,51,86,256 3,45,24,217

- Other Claims against the Company not acknowledged as debts 68,93,124 69,75,525

74,89,45,969 65,72,55,688

B) Capital and Other Commitments

i) Estimated amount of contracts remaining to be executed on capital account (net of advances) and not provided for Rs. 26,21,205/- (Previous year Rs. Nil)

ii) The Board of Directors of the Company, in the meeting held on 02.12.2011, approved buy back of 25,00,000 equity shares of Rs.10/- each at a maximum price of Rs. 45/- per share for an amount not exceeding Rs.11,25,00,000/-. During the year, the Company has bought back 1,78,272 shares. The balance commitment of the Company under buy-back scheme is 23,21,728 shares at a maximum price of Rs. 45/- per share.

iii) The Company has entered into joint development agreements with owners of land for its construction and development. Under the agreements, the Company is required to share in area/ revenue from such development in exchange of undivided share in land as stipulated under the agreements. As of March 31,2012 the Company has paid Rs. 32,19,43,125/- (Previous year Rs. 39,70,10,905/-) as refundable deposits against the joint development agreements. Further, the Company has given advances for purchase of land. Under the agreements executed with the land owners, the Company is required to make further payments under the agreements based on terms/ milestones stipulated under the agreement.

7 In respect of block assessment for the period 1st April, 1989 to 10th February, 2000, Income Tax Appellate Tribunal (ITAT) has given full relief to the Company and rejected department's ground of appeal, for tax claim of Rs.1,27,06,760/- (Previous year Rs.1,27,06,760/-). Further, in respect of assessment of certain years, demands had been raised by the Income Tax Department against the Company amounting to Rs. 7,25,24,050/-( previous year Rs. 7,51,90,731/-) approx by disallowing deduction under sections 80(IB) of the Income Tax Act, 1961. The appeals filed by the Company have been decided in its favour by CIT(Appeals)/ ITAT. The tax department has gone for further reference in the above matters to ITAT / High Court. The Company has been legally advised that it has a good case to succeed in the above matters.

8 Inventory of Land includes Rs.15,03,32,469/- (Previous year Rs.20,06,41,591/-) acquired by subsidiary companies. The land is registered in the name of the subsidiary companies but is under the possession and control of the Company for development and sale of Real Estate Projects in terms of collaboration agreement with these companies.

9 The Company is engaged primarily in the business of Real Estate development and also running Hospitality Business. However, there are no separate reportable segments as per criterion set out under Accounting Standard 17 on Segment Reporting in the Company. The Company is operating in India, hence there is no reportable geographical segment.

10 During the previous year, the company sold its entire shareholding consisting of 48,00,000 equity shares of Rs.10/- each representing 40% of investment in Capital Cars Pvt. Ltd. for a consideration of Rs. 12,82,68,093/-. Consequent to this sale, Capital Cars Pvt Ltd ceased to be a joint venture of the company with effect from 29th September, 2010. The profit on sale of investment of Rs. 8,02,68,093/- lacs was shown under " Other Income" in the Statement of Profit and Loss.

11 The Company has not received intimation from suppliers regarding the status under Micro Small Medium Enterprises Development Act, 2006 and hence disclosure, if any, relating to the amounts unpaid at the year end together with interest payable as required under the said Act have not been given.

Note : The Company has issued warrants to promoters of the Company which are convertible into equity shares at the option of the holder within 18 months of the allotment of warrants. Since the warrants have been issued at fair value, these are considered neither dilutive nor anti-dilutive and hence, these have not been considered in the computation of diluted earnings per share in accordance with Accounting Standard 20 on 'Earning Per Share'.

12 Buy-Back of Equity Shares

The Board of Directors of the Company, during their meeting held on 02.12.2011, approved the buy back of 25,00,000 equity shares of Rs.10/- each at maximum price of Rs. 45/- per share for an amount not exceeding Rs.11,25,00,000/- The Board decided to implement the buy-back offer through the open market purchases in the Stock Exchanges.

Pursuant to the offer, the Company from January 25,2012 to March 31,2012, has bought back 1,78,272 equity shares of Rs.10/- each aggregating to Rs. 75,80,530/-. The Company had extinguished 1,16,848 equity shares upto March 31,2012 and the balance 61,424 equity shares were extinguished subsequent to the year end. Accordingly, Rs.17,82,720 has been reduced from paid-up equity share capital and in accordance with the provisions of section 77A of the Companies Act, 1956, Rs. 57,97,810/- has been utilized from Securities Premium Account.

In terms of Section 77AA of the Companies Act, 1956, an amount of Rs. 17,82,720/- has been transferred to Capital Redemption Reserve.

13 Operating Lease

The Company has taken various residential / commercial premises under cancelable operating leases. These leases are normally renewable on expiry. The rental expenses in respect of operating leases amounting to Rs. 5,53,13,402/- (previous year Rs. 4,91,00,046/-) has been charged to the statement of profit and loss.

14 The disclosures of Employee Benefits as defined in Accounting Standard 15 are given below:

A. Defined Benefit Plan

i) Gratuity: The employees' gratuity fund scheme managed by Trust is a defined benefit plan. The present value of the obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

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

NOTES:

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

15.2 The Company has introduced leave encashment policy for its employees in the current year. Hence there are no corresponding figures for leave encashment in the previous year.

B. Defined Contribution Plan

The Company makes provident fund contribution to defined contribution retirement benefit plan for its employees. Under the scheme, the company deposits an amount determined as a specified percentage of basic pay with the regional provident fund commissioner. Contribution to defined contribution plan recognized as expense for the year is Rs.1,11,57,053/- (Previous year Rs. 90,93,608/-).

16 Related Party Disclosures

As per Accounting Standard- 18, the disclosures of transactions with related parties are given below: a) Names of the related parties where control exists and related parties with whom transactions have taken place and relationships:

1. Wholly Owned Subsidiaries M/s Geo Connect Ltd.

M/s Housing & Construction Lanka Pvt. Ltd.

M/s Maestro Promoters Pvt. Ltd.

M/s Wrangler Builders Pvt. Ltd.

M/s Anjuman Buildcon Pvt. Ltd.

M/s A R Infrastructure Pvt. Ltd.

M/s A R Paradise Pvt. Ltd.

M/s Fenny Real Estates Pvt. Ltd.

M/s Third Eye Media Pvt Ltd.

M/s Sunrise Facility Management Pvt. Ltd.

M/s Aevee Iron & Steel Works Pvt. Ltd.

M/s Enchant Constructions Pvt. Ltd.

M/s Rishu Builtech Pvt. Ltd.

M/s Sonu Buildwell Pvt. Ltd.

2. Key Management Personnel Mr. Deepak Ansal (Chairman & Managing Director)

Mr. Kushagr Ansal (Whole Time Director)

Mr. Karun Ansal (President)

3. Relatives of Key Management Personnel Ms. Divya Ansal (wife of Mr. Deepak Ansal)

M/s Deepak Ansal-(H.U.F)- (Karta Mr. Deepak Ansal)

Ms. Megha Ansal (wife of Mr. Kushagr Ansal)

Ms. Neha Ansal (wife of Mr. Karun Ansal)

4. Joint Venture M/s Capital Cars Pvt. Ltd.

(upto 29.09.2010, Refer Note No. 30)

5. Associates

5.1 Enterprise in which Key Management personnel having substantial interest

M/s Infinet India Ltd.

M/s Akash Deep Portfolios Pvt. Ltd.

M/s Suraj Kumari Charitable Trust M/s Ansal Clubs Pvt. Ltd.

M/s Sungrace Security Services Pvt. Ltd.

M/s Snow White Cable Network Pvt. Ltd. M/s Global Consultant & Designers Pvt. Ltd. M/s Glorious Properties Pvt. Ltd.

5.2 Enterprises in which relative of Key Management personnel having substantial interest

M/s Ansal Buildwell Ltd.

Note:

During the previous year, the company sold its entire shareholding in Capital Cars Pvt. Ltd. Consequently, the Capital Cars Pvt. Ltd. has ceased to be a Joint Venture of the Company wef 29.09.2010 & hence the share in Assets & Liabilities have not been shown.

17 The brief particulars other than quantitative details relating to Hospitality Division are given below:

(a) Income from Food and Beverage and Other Services for the year include income from Wine and Liquor Rs. 2,35,03,525/- (Previous Year Rs. 2,28,26,177/-).

(b) The break-up of consumption of Provisions, Beverages, Stores, Wines & Smokes are as follows :

18 Previous year figures:

Till the year ended 31st March 2011, the Company was using pre-revised Schedule-VI to the Companies Act, 1956, for 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 re-classified previous year figures to conform to this year's classification. The adoption of revised Schedule-VI doesn't impact recognition and measurement principles followed for preparation of financial statements. However, it significantly impacts presentation and disclosure made in the financial statements particularly presentation of Balance Sheet.

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Mar 31, 2011

1. Contingent Liabilities (Rs. in lacs)

As at As at 31st March, 31st March, 2011 2010

a) Guarantees given by the Company in 4,375.74 3960.00 favour of Banks/Financial Institutions on behalf of other companies

b) Income Tax / Wealth tax demands 446.25 453.31 being disputed by the Company

c) Sales tax demands being disputed 837.77 115.51 by the Company

d) Stamp duty demands being disputed 978.28 1,071.42 by the Company

e) Claims by customers for refund 345.24 663.09 of amount deposited/Compensation/ Interest

f) Other Claims against the Company 69.75 69.75 not acknowledged as debts

g) The Company has received a demand Rs. 271.31 lacs from Service Tax department vide order dated 28 April, 2011 levying service tax on transfer charges / administrative charges / processing charges received from customers for the period 1.10.2003 to 31.03.2010. The Company is in the process of fling appeal against the said order of the department. The Company has been advised that it has a good case to get the demand set aside.

2. In respect of block assessment for the period 1st April, 1989 to 10th February, 2000, Income Tax Appellate Tribunal (ITAT ) has given full relief to the Company and rejected department’s ground of appeal for tax claim of Rs. 127.06 lacs (Previous year Rs. 144.63 lacs). Further, in respect of assessment of certain years, demands had been raised by the Income Tax Department against the Company amounting to Rs. 751.91 lacs (Previous year Rs. 559.88 lacs) approx by disallowing deduction under section 80(IB) of the Income Tax Act, 1961. The appeals fled by the Company have been decided in its favour by CIT(Appeals)/ ITAT. The tax department has gone for further reference in the above matters to ITAT / High Court. The Company has been advised that it has a good case to succeed in the above matters.

3. Estimated amount of contracts remaining to be executed on capital account (net of advances) and not provided for Rs. Nil (previous year Rs. 20.44 lacs).

4. Inventory of Land includes Rs. 2,006.42 lacs (Previous year Rs. 2,266.66 lacs) acquired by subsidiary companies out of advances provided by the Company. The land is registered in the name of the subsidiary companies but is under the possession and control of the Company for development and sale of Real Estate Projects in terms of collaboration agreement with these companies.

5. The Company has advanced Rs. 751.02 lacs (Previous year Rs. 820.97 lacs) to certain Companies/ Collaborators for purchase of land parcels. The Company is currently in the process of finalizing the deals for purchase of land and the agreements will be signed shortly. Management is confident that these advances are good and recoverable.

6. Advances amounting to Rs. 332.50 lacs (Previous year Rs. 809.47 lacs) have been paid to collaborators and others towards land owned/acquired/to be acquired by them. A review is being taken up to ascertain the feasibility of these projects under the present market conditions. Considering the present market value of the land involved in collaboration arrangements, the management is of the view that no material loss will arise on completion of the review exercise.

7. The Company had received advance against booking of plots/fats in earlier years from Geo Connect Ltd (GCL), a wholly owned subsidiary for certain projects. Due to delay in project at Amritsar, the company has agreed to refund Rs. 10.00 crores (Previous year Rs. 10.00 crores) along with interest @15% p.a. to GCL. Interest payable to GCL for the period 24.01.2008 to 10.03.2011 amounting to Rs. 468.90 lacs (Previous year Rs. 287.26 lacs) has been charged to Profit and Loss account as interest expense for the year.

8. During the year, the company sold its entire shareholding consisting of 48,00,000 equity shares of Rs. 10/- each representing 40% of investment in Capital Cars Pvt. Ltd. for a consideration of Rs. 1,282.68 lacs. Consequent to this sale, Capital Cars Pvt Ltd ceased to be a joint venture of the company with effect from 29th September, 2010. The profit on sale of investment of Rs. 802.68 lacs has been shown under " Other Income" in the Profit & Loss Account.

9. Operating Lease:

The Company has taken various residential / commercial premises under cancelable operating lease. These leases are normally renewable on expiry. The rental expenses in respect of operating leases amounting to Rs. 491.00 Lacs (previous year Rs. 537.16 Lacs) has been charged to the profit and loss account.

10. The Company has not received intimation from suppliers regarding the status under Micro Small Medium Enterprises Development Act, 2006 and hence disclosure, if any, relating to the amounts unpaid at the year end together with interest payable as required under the said Act have not been given.

11. a) Details of Managerial Remuneration

* In Current year, salary as approved by shareholders has been drawn by directors. In the Previous years, directors had drawn less salary to the extent of Rs. 51.84 lacs by foregoing increments due to prevailing recession in the market.

12. The disclosures of Employee Benefits as defined in Accounting Standard 15 are given below: Defined Benefit Plan

The employees' gratuity fund scheme managed by Trust is a defined benefit plan. The present value of the obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit seperately to build up the final obligation.

V Acturial Assumptions

Note:

The estimates of rate of esclation in salary considered in acturial valuation, take into account inflation, seniority, promotion and other relevant factors including supply and demand in employment market.

13. Related Party Disclosures

a) Names of the related parties and description of relationship :

1. Wholly Owned Subsidiaries M/s Geo Connect Ltd. (Formerly known as Callnet India Ltd.) M/s Housing & Construction Lanka Pvt. Ltd. M/s Maestro Promoters Pvt. Ltd. M/s Wrangler Builders Pvt. Ltd. M/s Anjuman Buildcon Pvt. Ltd. M/s A R Infrastructure Pvt. Ltd. M/s A R Paradise Pvt. Ltd. M/s Fenny Real Estates Pvt. Ltd. M/s Third Eye Media Pvt Ltd. M/s Sunrise Facility Management Pvt. Ltd. M/s Aevee Iron & Steel Works Pvt. Ltd. M/s Enchant Constructions Pvt.Ltd. M/s Rishu Buildtech Pvt. Ltd. M/s Sonu Buildwell Pvt. Ltd.

2. Key Management Personnel Mr. Deepak Ansal (Chairman and Managing Director) Mr. Kushagr Ansal (Whole Time Director) Mr. Karun Ansal (President)

3. Relatives of Key Mrs. Divya Ansal (wife of Mr. Management Personnel Deepak Ansal) (With whom transaction taken M/s Deepak Ansal (H.U.F.)- place during the year) (Karta Mr. Deepak Ansal) Mrs. Megha Ansal (wife of Mr. Kushagr Ansal)

4. Joint Venture M/s Capital Cars Pvt. Ltd. (upto 29.09.2010, Refer Note No.8)

5. Associates

5.1 Enterprise in which Key M/s Infinet India Ltd. Management personnel having M/s Akash Deep Portfolios Private substantial interest Ltd.

5.2 Enterprises in which relative M/s Ansal Properties & of Key Management Infrastructure Ltd. personnel having substantial M/s Ansal Buildwell Ltd. interest M/s Suraj Kumari Charitable Trust M/s Ansal Clubs Pvt. Ltd. M/s Moonlight Electric Company Private Ltd. M/s Sungrace Security Services Private Ltd. M/s Snow White Cable Network Private Ltd. M/s Global Consultant & Designers Private Ltd. M/s Glorious Properties Private Ltd.

14. Particulars of Earning per share (Basic & Diluted)

Note: The Company has issued warrants to promoters of the Company which are convertible into equity shares at the option of the holder within 18 months of the allotment of warrants. Since the warrants have been issued at fair value, these are considered neither dilutive nor anti-dilutive and hence, these have not been considered in the computation of diluted earnings per share in accordance with Accounting Standard 20 on ‘Earning Per Share'.

15. Disclosure in respect of Company's Joint Venture entity in India pursuant to Accounting Standard 27 ' Financial Reporting of Interests in Joint Ventures' issued by the Institute of Chartered Accountants of India.

c) During the year, the company sold its entire shareholding in Capital Cars Pvt. Ltd. Consequently, the Capital Cars Pvt. Ltd. has ceased to be a Joint Venture of the Company wef 29.09.2010 & hence the share in Assets & Liabilities have not been shown.

16. Information pursuant to Part-II of Schedule-VI to the Companies Act,1956.

* Quantities issued to Contractors on recoverable basis are not treated as consumption ** Items being too many, quantitative details are not practicable.

17. The brief particulars other than quantitative details relating to Hospitality Division are given below:

(a) Income from Food and Beverage and Other Services for the year include income from Wine and Liquor Rs. 228.26 lacs (Previous Year Rs. 214.39 lacs).

18. The Company is engaged primarily in the business of Real Estate development and also running Hospitality Business. However, there are no separate reportable segments as per criterion set out under Accounting Standard 17 on Segment Reporting in the Company. The Company is operating in India, hence there is no reportable geographical segment.

19. Previous Year figures have been regrouped/rearranged wherever considered necessary, to make them comparable with Current Year's figures.

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Mar 31, 2010

1. Contingent Liabilities ( Rs. in lacs)

As at As at 31st March, 2010 31st March, 2009

a) Guarantees given by the Company in favour of Banks/Financial

Institutions on behalf of other companies 3960.00 2500.00

b) Other Claims against the Company not acknowledged as debts 566.53 117.75

c) Claims by customers for refund of amount deposited / Interest 663.09 618.47

d) Estimated amount of contracts remaining to be executed on capital account (net of advances) and not provided for Rs. 20.44 Lacs (previous year Rs. Nil lacs).

e) Income Tax / Wealth Tax demand being disputed by the company Rs. 453.31 lacs (Previous year Rs. 281.67 lacs). The Company has been legally advised that it has a good case to succeed are hence no provision has been considered necessary.

f) i) The Assessing Ofcer vide order dated 18.03.2008 passed under UP Sales Tax Act has levied additional sales tax of Rs. 31.50 lacs (Previous year Rs. 31.50 lacs) on sale of fats/ houses to customer on Installment basis for the year 2004- 05. The Appeal before Jt. Commissioner, Commercial Tax, Ghaziabad against this order was rejected vide Order No. 268 dt. 07.06.2008. Now, the Company has moved appeal before Tribunal, Commercial Tax, Ghaziabad against this order and stay order has been received from this authority.

ii) The Assessing Ofcer vide order dated 19.03.2008 passed under UP Sales Tax Act has levied additional sales tax of Rs. 20.37 lacs (Previous year Rs. 20.37 lacs) on sale of fats/ houses to customer on Installment basis for the year 2003-04.

The Company has moved appeal before Tribunal, Commercial Tax, Ghaziabad against this order. iii) The Assessing Ofcer vide order dated 09.02.2010 passed under UP Sales Tax Act has levied additional sales tax of Rs. 63.64 lacs (Previous year Rs. Nil lacs) on sale of fats/ houses to customer on Installment basis for the year 2005-06.

The Company has moved appeal before Tribunal, Commercial Tax, Ghaziabad against this order. g) Uttar Pradesh Revenue Authorities have demanded Rs. 574.64 lacs (Previous year Rs. 574.64 lacs) towards defciency in Stamp Duty on allotment of land to the company on leasehold basis by UP State Industrial Development Corporation Ltd. Against these demands the company has paid Rs. 46.46 lacs (Previous year Rs. 46.46 lacs) under protest and the balance demand has been stayed by the Honble High Court / Board of Revenue. Pending decision, no provision has been considered necessary. h) The Company has received a demand cum show cause notice dated 22.04.09 and 09.04.10 from the service tax department proposing a levy of service tax of Rs. 129.16 lacs on transfer charges / administrative charges / processing charges received from customers. The Company has fled its reply with the department. The Company has been legally advised that it has a good case and no demand is likely to arise in this matter and hence no provision has been considered necessary.

2. During the year, the Company has acquired 10,000 Equity Shares (Total Share Capital: 10,000 Equity Shares) of M/s Rishu Builtech Private Ltd. and 10,000 Equity Shares (Total Share Capital: 10,000 Equity Shares) of M/s Sonu Buildwell Private Ltd., as a result of which these Companies have become wholly owned subsidiaries of the Company.

3. Inventory of Land includes Rs. 2266.66 lacs (Previous year Rs. 2240.17 lacs) acquired by subsidiary companies out of advances provided by the Company. The land is registered in the name of the subsidiary companies but is under the possession and control of the Company for development and sale of Real Estate Projects in terms of collaboration agreement with these companies.

4. The Company has advanced Rs. 820.97 lacs (Previous year Rs. 1176.97 lacs) to certain Companies/ Collaborators for purchase of land parcels. The Company is currently in the process of fnalizing the deals for purchase of land and the agreements will be signed shortly. Management is confdent that these advances are good and recoverable.

5. Advances amounting to Rs. 809.47 lacs (Previous year Rs. 1117.76 lacs) have been paid to collaborators and others towards land owned/acquired/to be acquired by them. A review is being taken up to ascertain the feasibility of these projects under the present market conditions. Considering the present market value of the land involved in collaboration arrangements, the management is of the view that no material loss will arise on completion of the review exercise.

6. With efect from 1st April, 2009, the Company has changed the method of accounting for costs incurred in respect of i) project specifc advertisement, publicity, business promotion ii) administration and payroll expenses incurred for marketing staf and iii) brokerage paid to dealers which were being accounted for as project costs and debited to Work-in- Progress. The expenses incurred on above items from 1st April, 2009 amounting to Rs. 1088.58 lacs have been charged of to Proft and Loss Account. The consequential impact of above change on percentage completion, revenue recognition and proft for the year is not quantifable.

7. In respect of block assessment for the period 1st April, 1989 to 10th February, 2000, Income Tax Appellate Tribunal (ITAT ) has given full relief to the Company and rejected department’s ground of appeal for tax claim of Rs. 144.63 lacs. Further, in respect of assessment of certain years, demands had been raised by the Income Tax Department against the Company amounting to Rs. 559.88 lacs approx by disallowing deduction under sections 80(IB) of the Income Tax Act, 1961. The appeals fled by the Company have been decided in its favour by CIT(Appeals)/ ITAT. The tax department has gone for further reference in the above matters to ITAT / High Court. The Company has been legally advised that it has a good case to succeed in the above matters.

8. The Company had received advance against booking of plots/fats in earlier years from Geo Connect Ltd (GCL), a wholly owned subsidiary for certain projects. Due to delay in project at Amritsar, the company has agreed to refund Rs. 10 crores along with interest @15% p.a. to GCL. Interest payable to GCL for the period 4.2.2008 to 4.1.2010 amounting to Rs. 287.26 lacs has been charged to Proft and Loss account as interest expense for the year.

9. Operating Lease:

The Company has taken various residential / commercial premises under cancelable operating lease. These leases are normally renewable on expiry. The rental expenses in respect of operating leases amounting to Rs. 537.16 Lacs (previous year Rs. 468.61 Lacs) has been charged to the proft and loss account.

10. The Company has not received intimation from suppliers regarding the status under Micro Small Medium Enterprises Development Act, 2006 and hence disclosure, if any, related the amounts unpaid at the year end together with interest payable as required under the said Act have not been given.

11. On settlement of dispute with certain parties, the outstanding liabilities/ advance received in earlier years has been settled in current year by allotment of fats resulting in increase in sales by Rs. 985.52 lacs and proft by Rs. 400.07 lacs.

12. The disclosures of Employee Benefts as defned in Accounting Standard 15 are given below: Defned Beneft Plan

The employees gratuity fund scheme managed by Trust is a defned beneft plan. The present value of the obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee beneft entitlement and measures each unit seperately to build up the fnal obligation.

13. Related Party Disclosures

a) Names of the related parties and description of relationship 1. Wholly Owned Subsidiaries

M/s Geo Connect Ltd. (Formerly known as Callnet India Ltd.)

M/s Housing & Construction Lanka Pvt. Ltd.

M/s Maestro Promoters Pvt. Ltd.

M/s Wrangler Builders Pvt. Ltd.

M/s Anjuman Buildcon Pvt. Ltd.

M/s A R Infrastructure Pvt. Ltd.

M/s A R Paradise Pvt. Ltd.

M/s Fenny Real Estates Pvt. Ltd

M/s Third Eye Media Pvt Ltd.

M/s Sunrise Facility Management Pvt. Ltd.

M/s Aevee Iron & Steel Works Pvt. Ltd.

M/s Enchant Constructions Pvt. Ltd.

M/s Rishu Buildtech Pvt. Ltd.

M/s Sonu Buildwell Pvt. Ltd.

2. Key Management Personnel

Mr. Deepak Ansal (Chairman & Managing Director) Mr. Kushagra Ansal (Whole Time Director) Mr. Karun Ansal (President)

3. Relatives of Key Management Personnel

(With whom transaction taken place during the year)

Mrs. Divya Ansal (wife of Mr. Deepak Ansal)

M/s Deepak Ansal (H.U.F.)- (Karta Mr. Deepak Ansal)

Mrs. Megha Ansal (wife of Mr. Kushgra Ansal)

4. Joint Venture

M/s Capital Cars Pvt. Ltd.

5. Associates

5.1 Enterprise in which Key Management personnel having substantial interest

M/s Infnet India Ltd.

M/s Akash Deep Portfolios Private Ltd.

5.2 Enterprises in which relative of Key Management personnel having substantial interest

M/s Ansal Properties & Infrastructure Ltd.

M/s Ansal Buildwell Ltd.

M/s Suraj Kumari Charitable Trust

M/s Ansal Clubs (P) Ltd.

M/s Moonlight Electric Company Private Ltd.

M/s Sungrace Security Services Private Ltd.

M/s Snow White Cable Network Private Ltd.

M/s Global Consultant & Designers Private Ltd.

M/s Glorious Properties Private Ltd.

14. The Company is engaged primarily in the business of Real Estate development and also running Hospitality Business. However, there are no separate reportable segments as per criterion set out under Accounting Standard 17 on Segment Reporting in the Company. The Company is operating in India, hence there is no reportable gegraphical segment.

15. Previous Year fgures have been regrouped/rearranged wherever considered necessary, to make them comparable with Current Years fgures.