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Notes to Accounts of Ashiana Housing Ltd.

Mar 31, 2017

1 FIRST TIME ADOPTION OF IND AS

These separate financial statements of Ashiana Housing Limited for the year ended 31st March, 2017 have been prepared in accordance with Ind AS. For the purposes of transition to Ind AS, the company has followed the guidance prescribed in Ind AS 101 - First Time adoption of Indian Accounting Standard, with 1st April, 201 5 as the transition date and Indian GAAP as the previous GAAP.

The transition to Ind AS has resulted in changes in the presentation of the financial statements, disclosures in the notes there to and accounting policies and principles. The accounting policies set out in Note 2 have been applied in preparing the separate financial statements for the year ended 31st March, 2017 and the comparative information. An explanation of how the transition from previous GAAP to Ind AS has effected the company''s Balance Sheet, Statement of Profit and Loss is explained in Note 3.2 . Exemptions on first time adoption of Ind AS availed in accordance with Ind AS 101 have been set out in Note 3.1.

2 Exemptions availed on first time adoption

Ind-AS 101 allows first-time adopters certain exemptions from the retrospective application of certain requirements under Ind AS. The company has accordingly applied the following exemptions.

(a) Estimates

Ind AS 101 provides that an entity''s estimates as per Ind AS 8 “Accounting Policies, Changes in Accounting Estimates and Errors” at the date of transition shall be consistent with the estimates made for same date in accordance with previous GAAP, unless there is objective evidence that those estimates were in error.

Accordingly, the company has made Ind AS estimates as at the transition date i.e. 1st April, 2015 which are consistent with estimates made by it under the previous GAAP for the same date. The company made estimates for following items in accordance with Ind AS at the date of transition since these were not required under previous GAAP :

i] Investment in equity instruments designated at Fair Value through OCI ;

ii] Investment in debt instruments designated at Fair Value through Statement of P/L ; and

iii] Impairment of financial assets based on expected credit loss model.

(b) Business Combinations

Ind AS 1 01 provides the option to apply Ind AS 103 - “Business Combinations” 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 elected to apply Ind AS 103 prospectively to business combinations occurring after its transition date. Accordingly, business combinations occurring prior to transition date have not been restated.

(c) Deemed Cost

Ind AS 101 provides an option under Ind AS 16 “Property, Plant and Equipment”, to continue with the carrying value of all its property, plant and equipment as recognized in financial statements as on transition date, measured as per the previous GAAP and use that as its deemed cost after making necessary adjustments for decommissioning liabilities instead of measuring at fair value on the transition date. This exemption can also be

c) There are no material adjustments to the statements of cash flows as reported under the previous GAAP.

d) Notes to first time adoption

Note 3 : Proposed dividend (including tax on dividend)

Under the previous GAAP, dividends proposed by the board of directors after the balance sheet date but before the approval of the financial statements were considered as adjusting events. Accordingly, provision for proposed dividend was recognized as a liability. Under Ind AS, such dividends are recognized when the same is approved by the shareholders in general meeting. Accordingly, the liability for proposed dividend of Rs.578.28 as at 1st April, 2015 included under provisions has been reversed with corresponding adjustment to retained earnings. Consequently, the total equity increased by an equivalent amount.

Note 4 : Change in Fair valuation of Financial Instruments

Under the previous GAAP, investments in equity instruments and mutual fund were classified as long term investments or current investments based on the intended holding period and reliability. Long -term investments were carried at cost less provision for other than temporary decline in the value of such investments. Current investments were carried at lower of cost and fair value. Under Ind AS, these investments are required to be measured at fair value at each reporting period. The resulting fair value changes of these investments (other than equity instruments designated at fair value through OCI) have been recognized in retained earnings as at the date of transition and subsequently in the profit or loss for the year ended 31st March, 2016. This increased the retained earnings by Rs.754.30 Lakhs as at 31st March, 2016 (1st April, 2015- Rs.64.35 Lakhs).

Fair value changes with respect to investments in equity instrument designated fair value through OCI have been recognized in Equity Investment Reserve as at the date of transition and subsequently in other

(iv] Estimation of Fair Value

The company obtains independent valuations for its properties annually. These valuations are based on valuations performed by a registered accredited independent valuer. The best evidence of fair value is current prices in an active market for similar properties. Where such information is not available, the company considers information from a variety of sources including:

- current prices in an active market for properties of different nature or recent prices of similar properties in less active markets, adjusted to reflect those differences

- discounted cash flow projections based on reliable estimates of future cash flows

- Capitalised income projections based upon a property''s estimated net market income, and a capitalization rate derived from an evidence of market evidence

The main inputs used are the rental growth rates, expected vacancy rates, terminal yields and discount rates based on comparable transactions and industry data.

(v] The company has no restrictions on the realisability of its investment properties.

(vi] The company has no contractual obligations to purchase, construct or develop investment properties or for repairs, maintenance and enhancements except for the contractual obligation to construct the educational building.

(iii) Term /Rights attached to Equity Shares

The company has only one class of Equity Share having a par value of Rs.2 per share. Each holder of Equity Shares is entitled to one vote per share. The company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

During the year ended 31st March, 201 7, the amount of per share dividend recognized as distributions to equity shareholders was Nil/- (31st March, 201 6: Rs.0.50].

In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

(iv) The Board of Directors, in its meeting on 30th May, 201 7, have proposed a final dividend of Rs.0.25/- per equity share for the financial year ended 31st March, 201 7. The proposal is subject to the approval of shareholders at the Annual General Meeting to be held and if approved would result in a cash outflow of approximately Rs.308 Lakhs including corporate dividend tax.

(i) Disclosures pursuant to Schedule III of Companies Act, 2013 in relation to trade payables falling under the category of Micro and Small enterprises as defined under Micro, Small and Medium Enterprises Development Act, 2006 are as follows:

Dues to Micro and Small Enterprises have been determined to the extent such parties have been identified on the basis of information collected by the management.

Since previous year was the first year of such disclosure, figures for the year ended on 1st April, 2015 was not available with the company and hence, not disclosed above.

The present value of 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.

As of 31st March, 2017, every percentage point increase / decrease in discount rate will affect the company’s gratuity and leave pay benefit obligation by approximately Rs.51 Lakhs and Rs.0.31 Lakhs respectively .

As of 31st March, 2017, every percentage point increase / decrease in weighted average rate of increase in compensation levels will affect the company’s gratuity and leave pay benefit obligation by approximately Rs.46 Lakhs and Rs.0.32 Lakhs respectively .

Sensitivity for significant actuarial assumptions is computed by varying one actuarial assumption used for the valuation of the defined benefit obligation by one percentage, keeping all other actuarial assumptions constant.

(ii) Operating lease commitments — Company as lessor

The company has entered into operating leases on its certain investment property portfolio. These leases have terms of eleven months to 20 years. All leases include a clause to enable upward revision of the rental charge on an annual basis according to prevailing market conditions. The total contingent rents recognized as income during the year is Rs.12.24 Lakhs (31st March, 201 5: Rs.1 3.94 Lakhs).

c. Other Commitments

Estimated amount of contracts remaining to be executed on capital account and not provided for amounts to Rs.146.59 Lakh (P.Y. Rs.1 62.74 Lakhs); against which the company has given advance of Rs.98.47 Lakhs (P.Y. Rs.96.91 Lakhs).

f. The company filed a writ petition against Jamshedpur Notified Area Committee''s (JNAC) order stopping construction work in company''s commercial project Marine Plaza in Sonari, Jamshedpur, which was allowed by the Hon''ble High Court of Jharkhand, by its Order dated 1 7.1 2.201 4. Consequently, the company was allowed to carry out construction and marketing of the project and the State Government was directed by the Court to complete their enquiry, if any, in the matter on or before 30.06.201 5. The company has received a communication from Additional Deputy Commissioner, East Singhbhum, Jamshedpur through Tata Steel Ltd. that a Committee of the State Government has completed its enquiry and submitted its report to the State Government. However, any report or order in respect of the outcome of the enquiry has not been received by the company till date. Due to uncertainty and absence of any directions from the Government, the company has stopped construction work at Marine Plaza Site. A sum of Rs.2,039.03 Lakhs has been incurred by the company on this project till the close of this year.

g. Company''s land at Milakpur Gujar, Bhiwadi, District Alwar (Rajasthan) admeasuring 15.02 hectares, appearing in these accounts at book value of Rs.338.97 Lakhs, is under acquisition, 12.834 hectares for residential purposes and 2.186 hectares for development of road, by the Government of Rajasthan. The company has filed a Writ Petition before the Hon''ble High Court of Rajasthan against acquisition of land admeasuring 1 2.834 hectares challenging the entire acquisition proceeding against which the Hon''ble High Court has given stay. A compensation of Rs.3,71 2.75 Lakhs has been declared by the Government which and interest thereon Rs.1,638.30 Lakhs approx as at the close of the year shall be considered in the accounts on finality and receipt.

Management estimations and assumptions

a] The management assessed that cash and cash equivalents, trade receivables, trade payables, bank overdrafts and other current liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.

b] The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. The following methods and assumptions were used to estimate the fair values:

(i] The fair values of the quoted bonds and debentures and unquoted mutual funds are based on price quotations/NAVs at the reporting date.

(ii] The fair values of the unquoted equity shares have been determined based on certifications from valuers who have used Net Asset Value approach for determining the fair values.

As a part of capital management strategy, the company may adjust the amount of dividends paid to shareholders, issue new shares, raise debt capital or sell assets to reduce debt. The company monitors capital basis a gearing ratio which is calculated by dividing the total borrowings by total equity. The company’s strategy is to maintain a gearing ratio lower than 30%. In order to achieve this overall objective, the company ensures to meet its financial covenants attached to the interest bearing loans and borrowings. There have never been any breaches in financial covenants of any interest bearing loans and borrowings in the past and also in the current period.

5 SEGMENT INFORMATION

In accordance with Indian Accounting Standard 1 08 “Operating Segments” prescribed by Companies (Accounting Standards) Rules, 201 5, the company has determined its primary business segment as a single segment of Real Estate Business. Since there are no other business segments in which the company operates, there are no other primary reportable segments. Therefore, the segment revenue, segment results, segment assets, segment liabilities, total cost incurred to acquire segment assets, depreciation charge are all as is reflected in the financial statements.

6 RELATED PARTY TRANSACTIONS

Related parties and transactions with them as specified in the Ind-AS 24 on “Related Parties Disclosures” prescribed under Companies (Accounting Standards) Rules, 2015 has been identified and given below on the basis of information available with the company and the same has been relied upon by the auditors.

7 On the basis of physical verification of assets, as specified in IND AS - 36 and cash generation capacity of those assets, in the management perception there is no impairment of such assets as appearing in the Balance Sheet as on 31.03.201 7.

8 DISCLSOURE ON SPECIFIED BANK NOTES (SBNs)

During the year, the company had specified bank notes or other denomination note as defined in the MCA notification G.S.R. 308(E] dated 31st March, 2017 on the details of Specified Bank Notes (SBN] held and transacted during the period from 8th November, 201 6 to 30th December, 201 6, the denomination wise SBNs and other notes as per the notification is given below:

* For the purposes of this clause, the term ‘Specified Bank Notes'' shall have the same meaning provided in the notification of the Government of India, in the Ministry of Finance, Department of Economic Affairs number S.O. 3407(E], dated the 8th November, 201 6.

9 Previous years figure have been regrouped/rearranged, wherever found necessary.


Mar 31, 2016

1. A disclosure for a contingent liability is made when there is a
possible obligation or a present obligation that may, but probably will
not, require an outflow of resources.

b) Contested claim of Secretary, UIT, Bhiwadi for payment of Completion
Certificate Charges amounting to Rs, 12.53 Lakhs (Rs,12.53 Lakhs)
against which the company has deposited Rs, 12.53 Lakhs (Rs, 12.53
Lakhs) under protest.

2.) Company''s land at Milakpur Gujar, Bhiwadi, District Alwar
(Rajasthan) admeasuring 15.02 hectares, appearing in these accounts at
book value of Rs, 338.97 lakhs, is under acquisition, 12.834 hectares
for residential purposes and 2.186 hectares for development of road, by
the Government of Rajasthan. The Company has filed a Writ Petition
before the Hon''ble High Court of Rajasthan against acquisition of land
admeasuring 12.834 hectares challenging the entire acquisition
proceeding against which the Hon''ble High Court has given stay. A
compensation of Rs, 3712.75 lakhs has been declared by the Government
which and interest thereon Rs, 1304.15 lakhs approx as at the close of
the year shall be considered in the accounts on finality and receipt.

3.) The company filed a writ petition against Jamshedpur Notified Area
Committee''s (JNAC) order stopping construction work in company''s
commercial project Marine Plaza in Sonari, Jamshedpur, which was
allowed by the Hon''ble High Court of Jharkhand, by its Order dated
17.12.2014. Consequently, the company was allowed to carry out
construction and marketing of the project and the State Government was
directed by the Court to complete their enquiry, if any, in the matter
on or before 30.06.2015. The company has received a communication from
Additional Deputy Commissioner, East Singhbhum, Jamshedpur through Tata
Steel Ltd. that a Committee of the State Government has completed its
enquiry and submitted its report to the State Government. However, any
report or order in respect of the outcome of the enquiry has not been
received by the company till date. Due to uncertainty and absence of
any directions from the Government, the company has stopped
construction work at Marine Plaza Site. A sum of Rs, 2027.52 lakhs has
been incurred by the company on this project till the close of this
year.

4.) Company''s following projects are being developed under Development
Agreement with respective land owners on revenue sharing/area sharing
basis : Ashiana Anantara , (Jamshedpur), Ashiana Anand, (Jamshedpur),
Ashiana Navrang,( Halol), Ashiana Dwarka, (Jodhpur), Ashiana Shubham,
(Chennai), Ashiana Anmol, (Sohna), Ashiana Maitri, Uttarpara (Kolkata),
Upcoming Project, Ajmer Road, (Jaipur)

5. Estimated amount of contract remaining to be executed on capital
account and not provided for amounts to Rs, 162.74 Lakhs (P.Y. Rs,
37.20); against which the company has given advance of Rs, 96.91 Lakhs
(P.Y. Rs, 2.52 Lakhs).


6. In accordance with Accounting Standard 17 "Segment Reporting" as
prescribed under Companies (Accounting Standards) Rules, 2006, the
company has determined its business segment as Real Estate Business.
Since there are no other business segments in which the company
operates, there are no other primary reportable segments. Therefore,
the segment revenue, segment results, segment assets, segment
liabilities, total cost incurred to acquire segment assets,
depreciation charge are all as is reflected in the financial
statements.

7. Related parties and transactions with them as specified in the
Accounting Standard 18 on "Related Parties Disclosures" prescribed
under Companies (Accounting Standards) Rules, 2006 has been identified
and given below on the basis of information available with the Company
and the same has been relied upon by the auditors.

a) Enterprises where control exits Ashiana Maintenance Services Limited

Latest Developers Advisory Ltd Topwell Projects Consultants Ltd.
Neemrana Builders LLP MG Homecraft LLP Ashiana Amar Developers Vista
Housing

b) Associates and Joint Ventures Ashiana Greenwood Developers

Megha Colonizers

Ashiana Manglam Developers

Ashiana Manglam Builders

c) Individual Owning an interest in the voting power Nil of the Company
and their relatives

d) Key Management Personnel and their Relatives Mr. Vishal Gupta,
Managing Director

Mr. Ankur Gupta, Jt. Managing Director

Mr. Varun Gupta, Whole Time Director

Mr. Hemant Kaul, Independent Director

Mr. Abhishek Dalmia, Independent Director

Ms. Sonal Mattoo, Independent Director

Mr. Anand Narayan, Non Executive Director

Ms. Hem Gupta, Relative of Directors

Mr. Vikash Dugar, Chief Financial Officer

Mr. Nitin Sharma, Company Secretary

Ms. Aparna Sharma, Relative of Company Secretary

e) Enterprises over which any person referred to in OPG Realtors
Limited

(c) or (d) is able to exercise significant influence Karma Hospitality
Limited

R G Woods Limited OPMG Investments Private Limited AHL Group
Investments Pvt. Ltd.

Defined Benefit Plan

The present value of obligation is determined based on the 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.

8. Disclosures pursuant to Schedule III of Companies Act, 2013 in
relation to trade payables falling under the category of Micro and
Small enterprises as defined under Micro, Small and Medium Enterprises
Development Act, 2006 are as follows:


9. These accounts have been prepared as per Guidance note on
"Recognition of Revenue by Real Estate Developers" in respect of
projects undertaken between 1 April, 2006 and 31 March, 2011, which
have reached the level of construction as considered appropriate by the
management within 31 March, 2011.

Since, in terms of provisions of the Income Tax Act, 1961 the income
accrues upon delivery of physical possession/ deemed possession of
constructed unit ''Net Profit'' for computing Total Income under the said
Act is as follows: -

10. On the basis of physical verification of assets, as specified in
Accounting Standard - 28 and cash generation capacity of those assets,
in the management perception there is no impairment of such assets as
appearing in the balance sheet as on 31.03.2016.

11. During the year, the company has incurred Rs, 72.96 Lakhs (Rs,
107.55 Lakhs) towards Corporate Social Responsibility which has been
charged to the respective heads of accounts.

12. a) Previous year figures above are indicated in brackets.

b) Previous year figure have been regrouped/rearranged, wherever found
necessary.


Mar 31, 2015

1) Term/R ights attached to Equity Shares

The Company has only one class of Equity Share having a par value of 2 per share. Each holder of Equity Shares is entitled to one vote per share. The Company declares and pays dividend s in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. During the year ended 31 March, 2015, the amount of per share dividend recognized as distributions to equity shareholders was Rs. 0.50/- (31 March 201 4: 0.50). In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

2) Contingent Liability, not provided for, in respect of :

a) Claims not acknowledged a s debts

Cess - Sonari land Rs. 62.66 lakhs (Rs.54.28 lakhs)

Bank Guarantee Rs. 1345.00 lakhs (Rs.1375 lakhs)

Service Tax Rs.85.55 lakhs (Rs. 89 lakhs)

Income Tax Rs. 36.00 lakhs (Rs.39.14 lakhs)

Provident Fund Rs. 185.27 lakhs (Rs.185.27 lakhs)

Entry Tax Rs. 19.23 lakhs (Rs.19.23 lakhs)

Employee State Rs. 4.28 lakhs (Rs. 4.28 lakhs) Insurance Corporation

b) Contested claim of Secretary, UIT, Bhiwadi for payment of Completion Certificate Charges amounting to 1 2.53 lakhs (Rs. 12.53 lakhs) against which the Company has deposited Rs. 12.53 lakhs (Rs. 12.53 lakhs) under protest.

3) Companys land at Milakpur Gujar, Bhiwadi, District Alwar (Rajasthan) admeasuring 15.02 hectares, appearing in these accounts at book value of Rs. 338.97 lakhs, is under acquisition, 12.834 hectares for residential purposes and 2.186 hectares for development of road, by the Government of Rajasthan. The Company has filed a Writ Petition before the Honble High Court of Rajasthan against acquisition of land admeasuring 12.834 hectares challenging the entire acquisition proceeding. A compensation of Rs. 3873.12 lakhs has been declared by the Government which and interest thereon Rs. 1049.91 lakhs approx as at the close of the year shall be considered in the accounts on finality and receipt.

4) The Company filed a writ petition against Jamshedpur Notified Area Committee's (JNAC) order stopping construction work in Company's commercial project Marine Plaza in Sonari, Jamshedpur, which has been allowed by the Hon'ble High Court of Jharkhand, by their Order dated 1 7.1 2.201 4. Consequently, the Company has been allowed to carry out construction and marketing of the project, and the State Government has been directed by the Court to complete their enquiry, if any, in the matter on or before 31.03.2015 which was subsequently extended by three months by the Court by their Order dated 08.04.2015. A sum of Rs. 1951.93 lakhs has been incurred by the Company on this project till the close of this year.

5) Company s projects Ashiana Anantara, Jamshedpur, Ashiana Navrang, Halol, Ashiana Dwarka, Jodhpur and Ashiana Anmol, Sohna are being developed under Development Agreement with respective land owner s on revenue sharing/ area sharing basis.

6) Estimated amount of contract remaining to be executed on capital account and not provided for amounts to Rs. 37.20 lakhs (P.Y. Rs. 12.64 lakhs); against which the Company has given advance of Rs. 2.52 lakhs (P.Y. Rs. 4.68 lakhs).

7) a) In view of non confirmation/response from the suppliers regarding their status as SSI units, the amount due to Small Scale Industrial undertaking can not be ascertained.

b) Due to non receipt of confirmation/response from the suppliers for compliance under the Micro, Small and Medium Enterprises Development Act, 2006, the Company is unable to provide the information required under the said a ct.

8) The disclosure required under Accounting Standard -15, Employees Benefit, notified in the Companies (Accounting Standard) Rules, 2006 are given below, based on the Actuarial Report certified by a Practicing Actuary.

Defined Benefit Plan

The present value of 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.

9) In accordance with Accounting Standard 17 Segment Reporting as prescribed under Companies (Accounting Standards) Rules, 2006, the Company has determined its business segment as Real Estate Business. Since there are no other business segments in which the Company operates, there are no other primary reportable segments. Therefore, the segment revenue, segment results, segment assets, segment liabilities, total cost incurred to acquire segment assets, depreciation charge are all as is reflected in the financial statements.

10) Related parties and transactions with them as specified in the Accounting Standard 1 8 on Related Parties Disclosures prescribed under Companies (Accounting Standards) Rules, 2006 has been identified and given below on the basis of information available with the Company and the same has been relied upon by the auditors.

a) Enterprises where control exits

Ashiana Maintenance Services Limited Latest Developers Advisory Ltd Topwell Projects Consultants Ltd. Neemrana Builders LLP MG Homecraft LLP Ashiana Amar Developer s Vista Housing

b) Associates and Joint Ventures

Ashiana Greenwood Developers Megha Colonizers Ashiana Manglam Developers Ashiana Manglam Builders

c) Individual Owning an interest in the voting power of the Company and their relatives

Nil

d) Key Management Personnel and their Relatives

Mr. Vishal Gupta, Managing Director Mr. Ankur Gupta, Jt. Managing Director Mr. Varun Gupta, Whole Time Director Mr. Hemant Kaul, Independent Director Mr. Abhishek Dalmia, Independent Director M s. Sonal Mattoo, Independent Director Ms. Hem Gupta, Relative of Directors

Mr. Vikash Dugar, Chief Financial Officer

M r. Nitin Sharma, Company Secretary

M s. Aparna Sharma, Relative of Company Secretary

e) Enterprises over which any person referred to in (c) or (d) is able to exercise significant influence

OPG Realtors Limited Karma Hospitality Limited R G Woods Limited OPMG Investments Private Limited AHL Group Investments Pvt. Ltd.

11) These accounts have been prepared as per Guidance note on Recognition of Revenue by Real Estate Developers in respect of projects undertaken between 1st April, 2006 and 31st March, 2011 , which have reached the level of construction as considered appropriate by the management within 31" March, 2011.

12) In term s of the provisions of the Companies Act, 201 3, the management, based on technical evaluation, has reassessed the useful life of the tangible fixed assets. Con sequently, the depreciation for the year is higher by Rs. 674 lakh s.

13) Unabsorbed MAT credit to be allowed in future years amounts to Rs. 2706.69 lakhs/- (Rs. 2596.69 lakhs/-)

14) On the basis of physical verification of assets, as specified in Accounting Standard - 28 and cash generation capacity of those assets, in the management perception there is no impairment of such assets as appearing in the balance sheet as on 31.03.2015.

15) During the year, the Company has incurred Rs.107.55 lakh s (P.Y. 60.95 lakhs) towards Corpora te Social Responsibility which has been charged to the respective heads of accounts.

16) a) Previous year figures above are indicated in brackets.

b) Previous year figure have been reg rouped / rearranged, wherever found necessary.


Mar 31, 2013

1) Contingent Liability, not provided for, in respect of:

a) Claimsnotac knowled gedasdebts

Cess-Sonari land Rs.45.91 lakhs [Rs. 37.53 lakhs)

BankGuarantee Rs.0.25 lakhs [Rs.0.25 lakhs)

b) Contested claim of the Government of Rajasthan for refund of State Capital Subsidy including interest Rs.55.79 lakhs [Rs.54.75 lakhs) againstwhich the company has deposited X 55.79 lakhs [Rs.15 lakhs) under protest.

c) Contested claim of Secretary, UIT, Bhiwadi for payment of Completion Certificate Charges amounting to Rs.1 2.53 lakhs [Rs.1 2.53 lakhs) againstwhich the company has deposited Rs.12.53 lakhs [Rs. 12.53 lakhs) under protest.

d) Contested claim of a customer pursuant to the order of the District Consumer Forum Rs.2.66 lakhs [Nil) againstwhich the company has depositedRs. 2.66 lakhs [Nil) under protest.

2) Estimated amount of contract remaining to be executed on capital account and not provided for amounts to Rs.1 82.86 lakhs [P.Y. Nil); against which the company has given advance ofRs.1 5.1 ? lakhs [P.Y. Nil).

3) a) In view of non confirmation/response from the suppliers regarding their status as SSI units, the amount due to Small Scale Industrial undertaking can notbe ascertained.

b) Due to non receipt of confirmation/response from the suppliers for compliance under the Micro, Small and Medium Enterprises Development Act, 2006, the company is unable to provide the information required under the said act.

B) The company'' s Writ Petition before the Hon'' ble Rajasthan High Court, challenging applicability of service tax to the company under the category '' Construction of Residential Complex Services'' , has been dismissed by the Court. In view of this, the amounts of '' Service Tax Received from customers [subjudice)'' and '' Service Tax paid under Protest'' appearing under the heads "Other Current Liabilities" and "Short Term Loans and Advances" respectively in the previous year accounts have been regrouped/recasted.

4) The company has acquired Thada/Udaipur Business Divisions alongwith land admeasuring 22.296 hectares situated atThada and Udaipur villages, District Alwar, Rajasthan from its wholly owned subsidiaries namely M/s Topwell Projects Consultants Limited and M/s Latest Developers Advisory Limited byway of slump sale during the year, and assets and liabilites acquired thereof have been considered in these accounts accordingly. The company plans to launch project ''Ashiana Town'' on the aforesaid land.

5) In accordance with Accounting Standard 1 7 "Segment Reporting" as prescribed under Companies [Accounting Standards) Rules, 2006, the company has determined its business segment as Real Estate Business. Since there are no other business segments in which the company operates, there are no other primary reportable segments. Therefore, the segment revenue, segment results, segment assets, segment liabilities, total cost incurred to acquire segment assets, depreciation charge are all as is reflected in the financial statements.

6) Related parties and transactions with them as specified in the Accounting Standard 18 on "Related Parties Disclosures" presribed under Companies [Accounting Standards) Rules, 2006 has been identified and given below on the basis of information available with the company and the same has been relied upon by the auditors.

7) The earning per share has been calculated as specified in Accounting Standard 20 on "Earnings Per Share" issued by ICAI and related disclosures are as below:

8) The disclosure required under Accounting Standard -15, Employees Benefit, notified in the Companies [Accounting Standard) Rules, 2006 are given below:

9) These accounts have been prepared as per the revised Accounting Standard [AS) 9 on "Revenue Recognition" and the Guidance note on "Recognition of Revenue by Real Estate Developers" in respect of projects undertaken on or after 1st April, 2006 which have reached the level of construction as considered appropriate by the management within 31st March, 2011.

Since, in terms of provisions of the Income Tax Act, 1 961 the income accrues upon delivery of physical possession/ deemed possession of constructed unit and as deduction u/s 80IB [10) is claimed by the company after completion of construction, '' Net Profit'' for computing Total Income under the said Act is as follows: -

10) Unabsorbed MAT credit to be allowed in future years amounts to Rs. 259,435,295/- [ Rs.362,982,478/-)

11) The following changes in the accounting policies have been adopted during the year:

a) The project specific indirect expenses are being included in the cost in valuing Unsold Completed Construction and work in Progress.

b) Selling Expenses related to Specific Projects are being charged to Profit & Loss Account in the year in which sale thereof is offered for taxation.

Due to the aforesaid changes, profit for the year is higher byRs. 71 7.97 lakhs.

12) On the basis of physical verification of assets, as specified in Accounting Standard - 28 and cash generation capacity of those assets, in the management perception there is no impairment of such assets as appearing in the balance sheet as on 31.03.201 3.

13) During the year, the company has incurred Rs. 79.00 lakhs [P.Y. Rs. 37.92 lakhs) towards Corporate Social Responsibility which has been charged to the respective heads of accounts.

14) a) Previous year figures above are indicated in brackets.

b) Previous year figure have been regrouped/rearranged, wherever found necessary.

c) In view of changes in accounting policies as stated in Note No. 14 above, corresponding previous year figures are not comparable to that extent.


Mar 31, 2012

1) Contingent Liability, not provided for, in respect of:

2011 -2012 2010-2011

a) Contested demand of

ESIC NIL (Rs.4.28 lakhs)

Cess - Sonari land RS 37.53 lakhs (Rs 29.15 lakhs)

Service tax Rs.17.94 lakhs (NIL)

b) Contested claim of the Government of Rajasthan for refund of State Capital Subsidy including interest Rs 54.75 lakhs (Rs 52.50 lakhs). However the company has deposited Rs. 15 lakhs under protest.

2)a) In view of non confirmation/response from the suppliers regarding their status as SSI units, the amount due to Small Scale Industrial undertaking can not be ascertained.

b) Due to non receipt of confirmation/response from the suppliers for compliance under the Micro, Small and Medium Enterprises Development Act, 2006, the company is unable to provide the information required under the said Act.

4) Related parties and transactions with them as specified in the Accounting Standard 18 on "Related Parties Disclosures" issued by ICAI has been identified and given below on the basis of information available with the company and the same has been relied upon by the auditors.

5) These accounts have been prepared as per the revised Accounting Standard (AS) 9 on "Revenue Recognition" and the Guidance note on "Recognition of Revenue by Real Estate Developers".

Since, in terms of provisions of the Income Tax Act, 1961 the income accrues upon delivery of physical possession/deemed possession of constructed unit and as deduction u/s 80IB(10) is claimed by the company after completion of construction, 'Net Profit' for computing Total Income under the said Act is as follows: -

6) On the basis of physical verification of assets, as specified in Accounting Standard - 28 and cash generation capacity of those assets, in the management perception there is no impairment of such assets as appearing in the balance sheet as on March 31,2012.

7) Unabsorbed MAT credit to be allowed in future years amounts toRs 363,013,527/- (Rs 239,257,176/-)

8) a) Previous year figures above are indicated in brackets.

b) Previous year figure have been regrouped/rearranged, wherever found necessary.'


Mar 31, 2011

1 Contingent Liability, not provided for, in respect of : (a) Contested demand of

Sl. Rs. in Lakhs Rs. in Lakhs No. 2010-11 2009-10

1. Income tax and penalty 6.90 6.90

2. ESIC 4.28 4.28

3. Cess - Sonari land 29.15 19.43

(b)Contested claim of the Government of Rajasthan for refund of State Capital Subsidy including interest Rs. 52.50 lakhs (Rs. 50.25 lakhs).

(c)Corporate Guarantee in favour of Housing Development Finance Corporation Ltd. against borrowing of Rs. NIL Crores (Rs. 1.61 Crores) by M/s. Ashiana Greenwood Developers, a firm in which the company is a partner.

2 Estimated amount of contracts remaining to be executed on capital account and not provided for amounts (net of advance) to Rs. Nil (Rs. 8.74 lakhs)

3 Paid up Share Capital of the Company includes 1993100 (P.Y.1993100) Equity Shares, allotted pursuant to Schemes of Amalgamation without payment being received in cash and 13256855 (P.Y.13382750) Equity Shares, allotted as fully paid up Bonus Shares, by capitalisation of General Reserves.

4 a. Pursuant to Order dated 21st March, 2011 of the Honble High Court at Kolkata, certified true copy whereof was filed with the Registrar of Companies, West Bengal on the 11th May, 2011, erstwhile Ashiana Retirement Villages Limited (Transferor company), has been amalgamated with the company w.e.f. 1st April , 2010 and these accounts have been prepared accordingly. The net surplus of Rs. 54148464 remaining after adjustments, dividend from the transferor company to the transferee company Rs. 9240050 and dividend from the transferee Company to the transferor Company Rs. 786113 have been credited to "General Reserves".

b. Increase in Authorised Capital represents 10000000 Equity Shares of Rs. 10/- each of the Transferor company added in terms of Scheme of Amalgamation as referred in (5)a. above.

c. The Issued, Subscribed and Paid up Share Capital has been reduced from 18735850 Equity shares of Rs. 10/- each to 18609955 Equity Shares of Rs. 10/- each due to inter-se cancellation of 125895 Equity shares upon amalgamation.

5 Method of Accounting for recognisation of Revenue in respect of Real Estate Projects has been changed, as evident in the related Accounting Policies hereinabove. There is however, no effect on the profit for the year due to such change.

6 a. In view of non confirmation/response from the suppliers regarding their status as SSI units, the amount due to Small Scale Industrial undertaking can not be ascertained.

b. Due to non receipt of confirmation/response from the suppliers for compliance under the Micro, Small and Medium Enterprises Development Act, 2006, the company is unable to provide the information required under the said Act.

7 Related parties and transactions with them as specified in the Accounting Standard 18 on "Related Parties Disclosures" issued by ICAI has been identified and given below on the basis of information available with the company and the same has been relied upon by the auditors.

Related Parties & Relationship

a. Enterprises that directly, or indirectly through one or more intermediaries, Control or are controlled by or are under common control with the company (including holding companies, subsidiaries and fellow Subsidiaries):

Defined Benefit Plan

The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognises 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.

8 These accounts have been prepared as per the revised Accounting Standard (AS) 9 on "Revenue Recognition" and the Guidance note on "Recognition of Revenue by Real Estate Developers".

9 On the basis of physical verification of assets, as specified in Accounting Standard - 28 and cash generation capacity of those assets, in the management perception there is no impairment of such assets as appearing in the balance sheet as on 31.03.2011.

10 a. Buildings under Fixed Assets include Rs. 39,874,160 pending registration in the name of the company.

b. Depreciation includes differential depreciation of Rs. 503,500/- vis a vis written down value as per Income Tax Act, 1961 relating to building transferred to Investment.

11 Unabsorbed MAT credit to be allowed in future years amounts to Rs. 239,257,176/-

12 a. Previous year figures above are indicated in brackets.

b. Previous year figure have been regrouped/rearranged, wherever found necessary.


Mar 31, 2010

1. Contingent Liability, not provided for, in respect of:

a) Contested Demand of

Sl. No. (Rs.) in lakhs (Rs.) in lakhs

1. Income lax and penalty 6.90 (6.90)

2. ESIC 4.28 (4.28)

3. Additional Lease Rent Nil (34.73)

4. Provident Fund Nil (185.26)

5. Cess - onari land 19.43 _ (9.72)



(b) Show cause notice received for service tax Rs.Nil lakhs (Rs. 267.93 lakhs).

(c) Contested claim of the Government of Rajasthan for refund of State Capital Subsidy including interest Rs. 50.25 lakhs (Rs. 48.00 lakhs).

(d) Corporate Guarantee in favour of Housing Development Finance Corporation Ltd. against borrowingof Rs.1.61 Cr(Rs. Nil) by M/s. Ashiana Greenwood Developers, a firm in which the company is a partner.

2. Estimated amount of contract remaining to be executed on capital account and not provided for amounts (net of advance) to Rs. 8.74 lakhs (Rs. 5.20 lakhs).

3. Paid up Share Capital of the Company includes 19,93,100 Equity Shares, allotted pursuant to Schemes of Amalgamation without payment being received in cash and 1,33,82,750 Equity Shares, alloted as fully paid up Bonus Shares, by capitasation of General Reserves.

4. (a) In view of non confirmation/response from the suppliers regarding their status as SSI units, the amount due to Small Scale Industrial undertaking can not be ascertained.

(b) Due to non receipt of confirmation/response from the suppliers for compliance under the Micro, Small and Medium Enterprises Development Act, 2006, the company is unable to provide the information required under the said Act.

5. (a) Loans and advances includes Rs. 1,513,642/- (P.Y. Rs.1,658, 489/-) due from Ashiana Retirement Villages Limited, a company under the same management, Maximum Amount outstanding at any time during the year is Rs. 1,658,489/- (P.Y. Rs.1,658,489/-).

(b) Sundry Debtors includes Nil (P.Y. Rs.2,838,289/-) due from Ashiana Retirement Villages Limited, a company under the same management, Maximum Amount outstanding at any time during the year is Rs. 2,868,461 (P.Y. Rs.7,286,680/-).

6. These accounts have been prepared as per the revised Accounting Standard (AS) 9 on "Revenue Recognition" and the Guidance note on "Recognition of Revenue by Real Estate Developers".

7. On the basis of physical verification of assets, as specified in Accounting Standard - 28 and cash generation capacity of those assets, in the management perception there is no impairment of such assets as appearing in the balance sheet as on 31.03.2010.

8. Unabsorbed MAT credit to be allowed in future years amounts to Rs. 1 34,721,483/-

9. (a) Previous year figures above are indicated in brackets.

(b) Previous year figure have been regrouped/rearranged, wherever found necessary.

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