Notes to Accounts of Espire Hospitality Ltd.

Mar 31, 2024

16. PROVISIONS AND CONTINGENT LIABILITIES AND ASSET Provisions

Provisions are recognised when the Company has a present legal or constructive obligation as a result of a past events, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.

If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost.

Contingent liabilities and assets

Contingent liabilities are possible obligations that arise from past events and whose existence will only be confirmed by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company. Where it is not probable that an outflow of economic benefits will be required, or the amount cannot be estimated reliably, the obligation is disclosed as a contingent liability, unless the probability of outflow of economic benefits is remote.

17. REVENUE RECOGNISATION

a) Revenue in case of Hotels & Resorts Business

Revenue is recognised at the transaction price that is allocated to the performance obligation. Revenue includes room revenue, food and beverage sale and banquet services which is recognised once the rooms are occupied, food and beverages are sold and banquet services have been provided as per the contract with the customer. In relation to laundry income, airport transfers income and other allied services, the revenue has been recognised by reference to the time of service rendered.

b) Revenue in case of Sale of Services in real estate segment

Revenue in case of property maintenance services shall be recognized on fulfillment of performance obligations as per the contracts.

c) Interest

Revenue is recognized on a time proportion basis using the effective interest rate method.

18. EXPENDITURE

Expenses are accounted for on the accrual basis and provisions are made for all known losses and liabilities

19. BORROWING COSTS

Borrowing costs attributable to the acquisition or construction of a qualifying asset are capitalised as part of the cost of the asset. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. Other borrowing costs are recognised as an expense in the period in which they are incurred. Borrowing cost includes exchange differences to the extent regarded as an adjustment to the borrowing costs.

20. TAXATION

Income tax expense comprises of current tax and deferred tax. It is recognised in the Statement of Profit and Loss except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Cu rrent tax

Current tax comprises the expected tax payable or receivable on the taxable income or loss for the year and any adjustment to the tax payable or receivable in respect of previous years. The amount of current tax reflects the best estimate of the tax amount expected to be paid or received after considering the uncertainty, if any relating to income taxes. It is measured using tax rates enacted at the reporting date.

Current tax assets and current tax liabilities are offset only if there is a legally enforceable right to set off the recognised amounts, and it is intended to realise the asset and settle the liability on a net basis.

Deferred tax

Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the corresponding amounts used for taxation purposes.

Deferred tax liabilities are recognised for all taxable temporary differences. Deferred tax assets are recognised for unused tax losses, unused tax credits and deductible temporary differences to the extent that is probable that future taxable profits will be available against which they can be used. Deferred tax assets unrecognised or recognised, are reviewed at each reporting date and are recognised / reduced to the extent that it is probable / no longer probable respectively that the related tax benefit will be realised. Significant management judgement is required to determine the probability of deferred tax asset.

Deferred tax is measured at the tax rates that are expected to apply to the period when the asset is realised or liability is settled, based on the laws that have been enacted or substantively enacted by the reporting date.

The measurement of deferred tax reflects the tax consequences that would follow from the manner in which the Company expects, at the reporting date, to recover or settle the carrying amount of its assets and liabilities.

21. SEGMENT REPORTING

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The chief operating decision maker is considered to be the Board of Directors who makes strategic decisions and is responsible for allocating resources and assessing performance of the operating segments.

22. EARNING PER SHARE

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting attributable taxes) by the weighted average number of equity shares outstanding during the period. Since there is no potential; dilutive equity shares hence there is no impact on basic EPS while calculating dilutive EPS.

23. CASH FLOW STATEMENT

The cash flows from operating, investing and financing activities of the Company are segregated based on the available information. Cash flows from operating activities are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments.

24. RECENT INDIAN ACCOUNTING STANDARDS (IND AS)

Ministry of Corporate Affairs ("MCA") notifies new standard or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. On March 31, 2023, MCA amended the Companies (Indian Accounting Standards) Rules, 2015 by issuing the Companies (Indian Accounting Standards) Amendment Rules, 2023, applicable from April 1, 2023, as below:

i. Ind AS 1 - Presentation of Financial Statements-

The amendments require companies to disclose their material accounting policies rather than their significant accounting policies. Accounting policy information, together with other information, is material when it can reasonably be expected to influence decisions of primary users of general purpose financial statements. The Company does not expect this amendment to have any significant impact in its financial statements

ii. Ind AS 12 - Income Taxes -

The amendments clarify how companies account for deferred tax on transactions such as leases and decommissioning obligations. The amendments narrowed the scope of the recognition exemption in paragraphs 15 and 24 of Ind AS 12 (recognition exemption) so that it no longer applies to transactions that, on initial recognition, give rise to equal taxable and deductible temporary differences. The Company does not expect this amendment to have any significant impact in its financial statements.

iii. Ind AS 8 - Accounting Policies, Changes in Accounting Estimates and Errors-

The amendments will help entities to distinguish between accounting policies and accounting estimates. The definition of a change in accounting estimates has been replaced with a definition of accounting estimates. Under the new definition, accounting estimates are "monetary amounts in financial statements that are subject to measurement uncertainty". Entities develop accounting estimates if accounting policies require items in financial statements to be measured in a way that involves measurement uncertainty. The Company does not expect this amendment to have any significant impact in its financial statements.

13.3 The company has not reserved any equity shares for issue under options and contracts/commitments for sale of shares/disinvestment.

13.4 The company for the period of five years immediately preceding the Balance Sheet date has not:

(i) allotted any equity shares as fully paid up pursuant to contract(s) without payment being received in cash

(ii) alloted any fully paid up shares by way of bonus shares nor has bought back any class of equity shares

13.5 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, if any, 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, the equity shareholders are entitled to receive only the residual assets of the company. The distribution of dividend, if any, is in the proportion to the number of equity shares held by the shareholders.

*Mrs. Sadhana Rai has passed away on 23rd November, 2020, however her shares are yet to be transmitted to the legal heirs.

A petition for succession certificate with Hon''ble court has been filed and order has been received on dated 8 February, 2024 however the transmission is under process.

13.7 The Company has no holding, subsidiary, associate or joint venture.

13.8 The Company has not issued bonus shares, bought back shares or issued shares for consideration other than cash during the period of five years immediately preceding the reporting date.

The Company has not declared dividend in the financial year 2023-24 and 2022-23.

Valuation processes

The finance department of the Company includes a team that performs the valuations of financial assets and liabilities required for financial reporting purposes, including level 3 fair values. This team reports directly to the Senior Management. Discussions on valuation and results are held between the Senior Management and valuation team atleast once every quarter in line with the Company''s quarterly reporting periods.

Financial risk management

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

¦ Credit risk ;

¦ Liquidity risk ;

¦ Market Risk - Interest rate

Risk management framework

The Company''s board of directors has overall responsibility for the establishment and oversight of the Company''s risk management framework. The board of directors has authorized respective business Managers to establish the processes, who ensures that executive management controls risks through the mechanism of properly defined framework.

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

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

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of credit facilities to meet obligations when due and to close out market positions. Due to the dynamic nature of the underlying businesses, Company treasury maintains flexibility in funding by maintaining availability under credit facilities.

Liquidity risk results from the Company''s potential inability to meet the obligations associated with its financial liabiliti es, for example settle-ment of financial debt and paying suppliers. The Company''s liquidity is managed by Company Treasury. The aim is to ensure effective liquidity management, which primarily involves obtaining sufficient committed credit facilities to ensure adequate financial resources and, to some extent, tapping a range of funding sources.

Market risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises two types of risk namely: currency risk and interest rate risk. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return.

A. Interest rate risk

Interest rate risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company''s exposure to the risk of changes in market interest rates relates primarily to the Company''s borrowings with floating interest rates.

Exposure to interest rate risk

The Company''s interest rate risk arises majorly from the term loan carrying floating rate of interest. These obligations expose the Company to cash flow interest rate risk. The exposure of the Company''s borrowing to interest rate changes as reported to the management at the end of the reporting period are as follows:

31. c Fair value measurement and financial instruments

Capital Management

The primary objective of the management of the Company''s capital structure is to maintain an efficient mix of debt and equity in order to achieve a low cost of capital, while taking into account the desirability of retaining financial flexibility to pursue business opportunities and adequate access to liquidity to mitigate the effect of unforeseen events on cash flows. Management also monitors the return on equity.

The Board of directors regularly review the Company''s capital structure in light of the economic conditions, business strategies and future commitments.

For the purpose of the Company''s capital management, capital includes issued share capital, securities premium and all other equity reserves. Debt includes term loan

During the financial year ended 31 March 2024, no significant changes were made in the objectives, policies or processes relating to the management of the Company''s capital structure.

32. Commitment & Contingent Liabilities: -

a) LG Electronics India Pvt Ltd (LG) had filed a suit against the company, Usha India Ltd., and others for the recovery of ^ 465.02 lakhs given as security deposit for the premises A-41, Mohan Co-operative Industrial Estate, New Delhi -110044 taken by it on lease from Usha India Ltd. and against the maintenance service agreement for the same premises entered into with the Company. The Company has denied its liability on the ground that it has already assigned the agreement to Lord Mahadev Trust on 6th August, 1997 and transferred the security deposit of 87.19 lakhs received by the Company to the said Trust. However, Hon''ble High Court of Delhi has passed a part joint decree of 231.26 lakhs in favour of LG and the LG filed an execution petition and subsequently the Court directed the Company to transfer a sum of 4.50 lakhs to LG. The liability on account of above decree has not been ascertained by the court among the parties to the suit.

However, the management is of the opinion based on legal advices, that the Company shall not be liable to make any payment to L.G, even the amount of ^ 4.50 lakhs shall be recovered by the company from LG Electronics India Pvt. Ltd (LG).Presently ^ 4.50 lakhs so transferred to LG Electronics has been shown under the head of Long term Loan and Advances .

b) Commitments

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

33. Disclosure of Related Parties/Related Party Transactions:

A) Name and Transactions with related parties: -

i. KEY MANAGEMENT PERSONNEL

1. Mr. Prithvi Raj Singh - Managing Director till 29 December, 2023

2. Mr. Akhil Arora- Managing Director & Chief Executive Officer w.e.f 1 January, 2024

3. Mr. Rajeev Chatterjee- Chief Financial Officer w.e.f 15 August, 2023

4. Mr. Sumeer Narain Mathur - Company Secretary & Chief Financial Officer till 14 August, 2023)

5. Late Mrs. Sadhana Rai (Legal Heirs of Mrs. Rai) - Promoter

ii. ENTERPRISES HAVING SIGNIFICANT INFLUENCE OF KMP''S

1. Espire Reality Limited (Formerly Windsor Infrastructure Limited)

2. Forest Fern Hospitality Private Limited

3. Forest Fern Resorts Private Limited

4. Brentwoods International Limited

5. Sarp Hotels Private Limited

6. Espire resorts Private Limited

7. Espire Conglomerate Private Limited

Negative figures represent payable and positive figure represent recoverable

34. Segment Reporting Basis for Segment reporting

Factors used to identify the entity''s reportable segments, including the basis of organization

The company is engaged in hospitality business of operating and managing hotels / resorts. Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision Maker (CODM). The CODM is considered to be the Board of Directors who makes strategic decisions and is responsible for allocating resources and assessing performance of the operating segments. The CODM has determined only one operating segment i.e. hospitality business

Geographical Segments

The geographical segment have been identified on the basis of the location of customers. The total market of the Company can be segregated into domestic market as they do not have any overseas market.

41. The company neither holds any benami property nor any proceedings have been initiated or pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.

42. Gross amount required to be spent on CSR activities during the year is Nil (Previous year Nil).

43. The Company has not undertaken any transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956

44. There is no charge or satisfaction pending for registration with Registrar of Companies beyond the statutory period

45. The Company has not traded or invested in Crypto currency or Virtual Currency during the year ended March 31, 2024 and March 31, 2023.

46. The company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017.

47. The Company does not have any working capital limits through any bank or financial institution.

48. The Company has established a comprehensive system of maintenance of information and documents that are required by the transfer pricing legislation under section 92-92F of the Income Tax Act, 1961.

49. There are no undisclosed incomes that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961.

50. Previous year''s figures have been regrouped / rearranged wherever necessary.

For Bansal & Co LLP For Espire Hospitality Limited

Chartered Accountants

Firm Reg No:001113N/N500079

Siddharth Bansal Gagan Oberoi Akhil Arora

Partner Director Managing Director & CEO

Membership No:518004 DIN:00087963 DIN: 09436540

Place: New Delhi

Date: 30th May 2024

Sumeer Narain Mathur Rajeev Chatterjee

Company Secretary Chief Financial Officer

& Compliance Officer M.No.: FCS9042

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Mar 31, 2023

Note 10.1

Term deposit has been given as security against the bank gurantee submitted to Department of Trade and Taxes Delhi. The tenure of the Bank Guarantee has already been expired however the Bank Guarantee is yet to be released by the Department of Trade and Taxes, Delhi

12.3 The company has not reserved any equity shares for issue under options and contracts/ commitments for sale of shares/ disinvestment

12.4 The company for the period of five years immediately preceding the Balance Sheet date has not

(i) allotted any equity shares as fully paid up pursuant to contract(s) without payment being received in cash

(ii) alloted any fully paid up shares by way of bonus shares nor has bought back any class of equity shares

12.5 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, if any, 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, the equity shareholders are entitled to receive only the residual assets of the company. The distribution of dividend, if any, is in the proportion to the number of equity shares held by the shareholders.

*Mrs. Sadhana Rai has passed away on 23rd November, 2020, however her shares are yet to be transmitted to the legal heirs.

A petition for succession certificate with Hon''ble court has been filed however the order is awaited .

12.7 The Comnpany has no holding, subsdiary, associate or joint venture

12.8 The Company has not issued bonus shares, bought back shares or issued shares for consideration other than cash during the period of five years immediately preceding the reporting date.

The Company has not declared dividend in the financial year 2022-23 and 2021-22.

29 Contingent liabilities

A Claims / show cause notices against the Company disputed by the Company not acknowledged as debt:

	As at	As at
	31 March 2023	31 March 2022
(a) Income tax matters	-	-
(b) Civil Suits	87.19	87.19
(d) Guarantee issued	-	-
Total	87.19	87.19

In respect of the above claims against the Company , all available legal steps have been taken to protect the Company''s interest. Based on the status of the case and as advised by Company''s advisors, wherever applicable, the management believes that the Company has strong chance of success and no further liability will arise against the same.

B Capital and other commitments
	As at	As at
	31 March 2023	31 March 2022
Estimated amount of contracts remaining to be executed on capital account and not provided for	-	-

Valuation processes

The finance department of the Company includes a team that performs the valuations of financial assets and liabilities required for financial reporting purposes, including level 3 fair values. This team reports directly to the Senior Management. Discussions on valuation and results are held between the Senior Management and valuation team atleast once every quarter in line with the Company''s quarterly reporting periods.

b. Financial risk management

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

¦ Credit risk ;

¦ Liquidity risk ;

¦ Market Risk - Interest rate

Risk management framework

The Company’s board of directors has overall responsibility for the establishment and oversight of the Company’s risk management framework. The board of directors has authorized respective business Managers to establish the processes, who ensures that executive management controls risks through the mechanism of properly defined framework.

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

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations.

Credit risk on cash and cash equivalents is limited as the Company generally invests in deposits with banks with high credit ratings assigned by domestic credit rating agencies. The loan represents security deposits given to suppliers, employees and others. The credit risk associated with such deposits is relatively low.

As per Ind AS 109, the Company makes allowance for doubtful trade receivable using simplified approach , significant judgement is used to estimate doubtful accounts as prescribed in IND AS 109 . In estimating doubtful accounts historical and anticipated customer performance are considered. Changes in the economy, industry, or specific customer conditions may require adjustments to the allowance for doubtful accounts recorded in financial statements. This is done on the basis of company’s past history, existing market conditions as well as forward looking estimates at the end of each reporting period. Based on the business environment in which the Company operates, management considers that the trade receivables (other than receivables from government departments) are in default (credit impaired) if the payments are more than 365 days past due however the Company based upon past trends determine an impairment allowance for loss on receivables outstanding for more than 365 days past due and the probability of recovery determined by the competent management.

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

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of credit facilities to meet obligations when due and to close out market positions. Due to the dynamic nature of the underlying businesses, Company treasury maintains flexibility in funding by maintaining availability under credit facilities.

Liquidity risk results from the Company’s potential inability to meet the obligations associated with its financial liabilities, for example settle-ment of financial debt and paying suppliers. The Company’s liquidity is managed by Company Treasury. The aim is to ensure effective liquidity management, which primarily involves obtaining sufficient committed credit facilities to ensure adequate financial resources and, to some extent, tapping a range of funding sources.

The inflows/(outflows) disclosed in the above table represent the contractual undiscounted cash flows relating to derivative financial liabilities held for risk management purposes and which are not usually closed out before contractual maturity.

The interest payments on variable interest rate loans in the table above reflect market forward interest rates at the reporting date and these amounts may change as market interest rates change.

Market risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises two types of risk namely: currency risk and interest rate risk. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return.

A. Interest rate risk

Interest rate risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company’s exposure to the risk of changes in market interest rates relates primarily to the Company’s borrowings with floating interest rates.

Exposure to interest rate risk

The Company’s interest rate risk arises majorly from the term loan carrying floating rate of interest. These obligations exposes the Company to cash flow interest rate risk. The exposure of the Company’s borrowing to interest rate changes as reported to the management at the end of the reporting period are as follows:

Cash flow sensitivity analysis for variable-rate instruments The Company does not hold any variable rate instruments.

Fair value sensitivity analysis for fixed-rate instruments

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

30. c Fair value measurement and financial instruments

Capital Management

The primary objective of the management of the Company''s capital structure is to maintain an efficient mix of debt and equity in order to achieve a low cost of capital, while taking into account the desirability of retaining financial flexibility to pursue business opportunities and adequate access to liquidity to mitigate the effect of unforeseen events on cash flows. Management also monitors the return on equity.

The Board of directors regularly review the Company''s capital structure in light of the economic conditions, business strategies and future commitments.

For the purpose of the Company''s capital management, capital includes issued share capital, securites premium and all other equity reserves. Debt includes term loan

During the financial year ended 31 March 2023, no significant changes were made in the objectives, policies or processes relating to the management of the Company''s capital structure.

32. Segment Reporting

Basis for Segment reporting

Factors used to identify the entity''s reportable segments, including the basis of organization

The company is engaged in hospitality business of operating and managing hotels / resorts. Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision Maker (CODM). The CODM is considered to be the Board of Directors who makes strategic decisions and is responsible for allocating resources and assessing performance of the operating segments. The CODM has determined only one operating segment i.e. hospitality business.

Geographical Segments

The geographical segment has been identified on the basis of the location of customers. The total market of the Company can be segregated into domestic market as they do not have any overseas market.

33. Impairment of Non-Financial Assets

All significant assets and cash generating unit were tested for impairment. The recoverable amount of significant assets and cash generating units was found higher than the carrying value. No impairment was identified.

Note:

Variances are on account of the fact that the Company commenced operations in multiple leasehold resorts during the year.

36. Value of Imports on CIF basis: NIL (Previous. Year Nil)

37. Details of imported and indigenous raw materials, spare parts, and components consumed Raw Materials: NIL (Previous. Year Nil)

Stores & spares: NIL (Previous Year Nil)

38. Expenditure in foreign currency: NIL (Previous Year Nil).

Earning In Foreign currency: NIL (Previous Year Nil).

39. Exceptional items NIL (Previous Year Nil)

40. The Micro and Small Enterprises have been identified by the Company from the available information, which has been relied upon by the auditors. According to such identification, the information as required to be reported as per Micro, Small and Medium Enterprise Development Act, 2006 as at March 31, 2023 are as under: -

41. The company neither holds any benami property nor any proceedings have been initiated or pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.

42. Gross amount required to be spent on CSR activities during the year is Nil (Previous year Nil).

43. The Company has not undertaken any transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956

44. There is no charge or satisfaction pending for registration with Registrar of Companies beyond the statutory period

45. The Company has not traded or invested in Crypto currency or Virtual Currency during the year ended March 31, 2023 and March 31, 2022.

46. The company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017.

47. The Company does not have any working capital limits through any bank or financial institution.

48. The Company has established a comprehensive system of maintenance of information and documents that are required by the transfer pricing legislation under section 92-92F of the Income Tax Act, 1961.

49. There are no undisclosed incomes that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961.

50. Previous year''s figures have been regrouped / rearranged wherever necessary.

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Mar 31, 2015

Note No. 1

(A) CORPORATE INFORMATION

The Company was incorporated on October 23, 1991, under the provisions of the Companies Act,1956. The company Registered Office is located at Bhimtal, Dist Nanital (Uttarakhand).The Company has been doing trading and rendering Property Maintenance services.

2.1 The company has not reserved any equity shares for issue under options and contracts/commitments for sale of shares/disinvestment

2.2 The company for the period of five years immediately preceding the Balance Sheet date has not

(i) allotted any equity shares as fully paid up pursuant to contract(s) without payment being received in cash

(ii) alloted any fully paid up shares by way of bonus shares nor has bought back any class of equity shares

2.3 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, if any, 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, the equity shareholders are entitled to receive only the residual assets of the company. The distribution of dividend, if any, is in the proportion to the number of equity shares held by the shareholders.

3.1 Bank Balances of Rs 63065/- under the head other bank balance's (in current account) represents bank accounts seized by statutory authorities

3.2 Term deposit of Rs 1,00,000/- has been given as security against the bank gurantee submitted to Department of Trade and Taxes Delhi

4. Commitment & Contingent Liabilities:-

a) LG Electronics India Pvt. Ltd (LG) had filed a suit against the company, Usha India Ltd., and others for the recovery of Rs. 4,65,02,400/- given as security deposit for the premises A-41, Mohan Co-operative Industrial Estate, New Delhi -110044 taken by it on lease from Usha India Ltd. and against the maintenance service agreement for the same premises entered into with the company. The company has denied its liability on the ground that it has already assigned the agreement to Lord Mahadev Trust on 6th August, 1997 and transferred the security deposit of Rs. 87,19,200/- received by the Company to the said Trust. However, Hon'ble High Court of Delhi has passed a part joint decree of Rs. 2,31,25,803/- in favour of LG and the LG filed an execution petition and subsequently the Court directed the ICICI Bank, New friends Colony, New Delhi to transfer a sum of Rs.4,50,000/- to LG. The liability on account of above decree has not been ascertained by the court among the parties to the suit.

However, the management is of the opinion based on legal advices, that the Company shall not be liable to make any payment to L.G, even the amount of Rs 4,50,000/- shall be recovered by the company from LG Electronics India Pvt. Ltd (LG).Presently Rs 4,50,000/- so transferred to LG Electronics has been shown under the head of Long term Loan and Advances.

(b) Other money for which the company is contingently liable

Assessing officer has filed an appeal before the ITAT, New Delhi against the order of Commissioner of Income Tax (Appeals) allowing the appeal for deleting the demand of Rs 6,51,050/- towards the penalty imposed by the Assessing Officer U/s 271(1) (C) relating to the assessment year 2003-04. The case was remanded back to CIT(Appeals) for adjudication on merit vide order dated 06-06-2008 by ITAT. However the CIT(Appeals) has not taken the case till date.

c) Commitments

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

5. Value of Imports on CIF basis : NIL (P. Year Nil)

6. Details of imported and indigenous raw materials, spare parts, and components consumed Raw Materials: NIL(P. Year Nil)

Stores & spares: NIL(P. Year Nil)

7. Expenditure in foreign currency: NIL (P Year Nil).

Earning In Foreign currency: NIL (P Year Nil).

8. Exceptional items of Rs 170,79,554/- represents the Loan & Advances written off in the books of accounts being not recoverable in cash or in kind.

9. Previous year's figures have been regrouped / rearranged wherever necessary.

10. Figures in brackets denotes negative figures.

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Mar 31, 2014

Note No. 1

(A) CORPORATE INFORMATION

The Company was incorporated on October 23, 1991, under the provisions of the Companies Act, 1956. The company Registered Office is located at Bhimtal.Dist Nanital (Uttarakhand).The Company has been doing trading of Steel and other products and rendering Property Maintenance services.

1.1 The company has not reserved any equity shares for issue under options and contracts/commitments for sale of shares/disinvestment

1.2 The company for the period of five years immediately preceding the Balance Sheet date has not

(i) allotted any equity shares as fully paid up pursuant to contract(s) without payment being received in cash (ii) alloted any fully paid up shares by way of bonus shares nor has bought back any class of equity shares

2.0 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, if any, 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, the equity shareholders are entitled to receive only the residual assets of the company. The distribution of dividend, if any, is in the proportion to the number of equity shares held by the shareholders.

2.1

Bank Balances of Rs 63065/- under the head other bank balance''s (in current account) represents bank accounts seized by statutory authorities.

2.2

Term deposit of Rs 1,00,000/- has been given as security against the bankgurantee submitted to Department of Trade and Taxes Delhi.

3. Commitment & Contingent Liabilities:-

a) LG Electronics India Pvt. Ltd (LG) had filed a suit against the company, Usha India Ltd., and others for the recovery of Rs. 4,65,02,400/- given as security deposit for the premises A-41, Mohan Co-operative Industrial Estate, New Delhi -110044 taken by it on lease from Usha India Ltd. and against the maintenance service agreement for the same premises entered into with the company. The company has denied its liability on the ground that it has already assigned the agreement to Lord Mahadev Trust on 6th August, 1997 and transferred the security deposit of Rs. 87,19,200/- received by the Company to the said Trust. However, Hon''bleHigh Court of Delhi has passed a part joint decree of Rs. 2,31,25,803/- in favour of LG and the LG filed an execution petition and subsequently the Court directed the ICICI Bank, New friends Colony, New Delhi to transfer a sum of Rs.4,50,000/- to LG. The liability on account of above decree has not been ascertained by the court among the parties to the suit.

However, the management is of the opinion based on legal advices, that the Company shall not be liable to make any payment to L.G, even the amount of Rs 4,50,000/- shall be recovered by the company from LG Electronics India Pvt. Ltd (LG).Presently Rs 4,50,000/- so transferred to LG Electronics has been shown under the head of Long term Loan and Advances.

(b) Other money for which the company is contingently liable

Assessing officer has filed an appeal before the ITAT, New Delhi against the order of Commissioner of Income Tax (Appeals) allowing the appeal for deleting the demand of Rs 6,51,050/- towards the penalty imposed by the Assessing Officer U/s 271(1) (C) relating to the assessment year 2003-04. The case was remanded back to CIT(Appeals) for adjudication on merit vide order dated 06-06-2008 by ITAT. However the CIT(Appeals) has not taken the case till date.

c) Commitments

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

4. Value of Imports on CIF basis: NIL (P. Year Nil)

5. Details of imported and indigenous raw materials, spare parts, and components consumed Raw Materials: NIL(P Year Nil)

Stores & spares: NIL(P. Year Nil)

6. Expenditure in foreign currency: NIL (P Year Nil). Earning In Foreign currency: NIL(P.Year Nil).

7. EMPLOYEE BENEFIT PLAN

Provision for gratuity and leave encashment has not been provided in the books as none of the employees of the company are eligible for these benefits as on 31.03.2014.

8. Previous year''s figures have been regrouped / rearranged wherever necessary.

9. Figures in brackets denotes negative figures.

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Mar 31, 2013

1. The company was incorporated on 23.10.1991, and is in the business of Real Estate, Barter Trade & Trading of Chocolates and Beauty products.

2. Contingent Liabilities:-

a) LG Electronics India Pvt. Ltd (LG) had filed a suit against the company, Usha India Ltd., and others for the recovery of Rs. 4,65,02,400/- given as security deposit for the premises A-41, Mohan Co-operative Industrial Estate, New Delhi -110044 taken by it on lease from Usha India Ltd. and against the maintenance service agreement for the same premises entered into with the company. The company has denied its liability on the ground that it has already assigned the agreement to Lord Mahadev Trust on 6* August, 1997 and transferred the security deposit of Rs. 87,19,200/- received by the Company to the said Trust. However, Hon''ble High Court of Delhi has passed a part joint decree of Rs. 2,31,25,803/- in favour of LG and the LG filed an execution petition and subsequently the Court directed the ICICI Bank, New friends Colony, New Delhi to transfer a sum of Rs.4,50,000/- to LG. The liability on account of above decree has not been ascertained by the court among the parties to the suit. However, the management is of the opinion that the Company can be liable maximum to the extent of Rs. 87,19,200/- on account of the above recovery suit. Company is contesting the execution petition filed by LG electronics India Pvt. Ltd.Rs 4,50,000/- so transferred from the Company''s Banka/cto LG Electronics has been shown under the head of Long term Loan and Advances.

(b) Other money for which the company is contingently liable:

Assessing officer has filed an appeal before the ITAT, New Delhi against the order of Commissioner of Income Tax (Appeals) allowing the appeal for deleting the demand of Rs 6,51,050/- towards the penalty imposed by the Assessing Officer U/s 271(1) (C) relating to the assessment year 2003-04. The case was remanded back to CIT(Appeals) for adjudication on merit vide order dated 06-06-2008 by ITAT. However the CIT(Appeals) has not taken the case till date.

3. Balances of Loans and Advances are subject to reconciliation and confirmation.

4. During the year there is no transactions with Related Parties as per the requirements of AS-18 Related Party Disclosures'' issued by the Institute of Chartered Accountants of India.

5. Value of Imports on CIF basis: NIL (P. Year Nil)

6. Expenditure in foreign currency: NIL (P Year Nil).

7. Provision for gratuity and leave encashment has not been provided in the books as none of the employees of the company are eligible for these benefits as on 31.03.2013.

8. Previous year''s figures have been regrouped / rearranged wherever necessary.

9. Figures in brackets denotes negative figures.

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Mar 31, 2012

1.1 The Company has completed the project the Usha Nike tan, Beni Park Jaipurth as per the collaboration agreement dated 7th Jan, 1994, and as per the terms and conditions of the agreement, requested the owner of the land Mr Anil Parishes to refund of Rs 12 lacs paid to him as refundable security. On his failure to pay the amount, the company filled a legal suit for recovery of the above said amount in the District court Delhi. The amount of Rs 12 Lacs has been grouped under the head' Security Depositsth.

1.2 The company had entered into an agreement dated 28- September 1993 with R. L. Baiswala & Sons HUF for purchase of a Plot No.D-71, Satie Villa, Jamuna Lai Bajaj Marg, C-Scheme, Jaipur. But as the vendor of the land could not transfer the land and hand-over its possession, the company filed a suit against the vendor.

District Trial Court in Jaipur has decreed the suit to the extent of refund of the money of Rs 17 lacs to company pfus interest @18% plus cost of the suit but dismissed the prayer for specific performance and thereafter company filed an appeal with the Rajasthan High Court for specific performance. Meanwhile the company also filed another appeal with High Court of Rajasthan praying for injunction order against the defendants restraining them from sale of the property. The amount of 8,39,214/- including litigation expenses of Rs 755000/- have been shown as other loans and advances. The High Court has issued a injunction order dated 08.10.2001 in favour of the Company. There has been no change in the status of the project during the year.

1.3 The company had signed a Memorandum of Understanding (MOU) on 28.03.1995 with Mrs. P. Jayamma, Mrs. J. Savithramma, and Mrs. P. Nagarathna for the purpose of putting up residential and commercial complex on the property bearing S.No.170and 172 of Kodihalli Village, Varthur, Hobli, Bangalore, South Taluk. On completion of the said project each party was to share 50% of the built-up area including terrace right.

Company had been forced to keep the project suspended because of the defect in title deeds of the property and acquisition of some part of property by the Bangalore Development Authority (BDA).Company had filed a legal suit against the party in the City Civil Judge at Bangalore, for the specific performance of the agreement and in the alternative for recovery of entire amount paid together with interest of 21% per annum. The company has Paid Rs 30 Lacs against the J V agreement and as per the agreement the possession of the aforesaid land is with the company. The amount of Rs. 15,22,878/- including litigation expenses of Rs 5,20,000/- has been shown as thother loans and advancesth. There has been no change in the status of the project during the year.

1.4 The Company entered into an MOU for joint development of residential and/or commercial complexes at Hoodi Village, K.R.Puram, Bangalore, South Taluk on 26-August,1999 with Mr.Y.Rajendraand others. They failed to perform his obligations under the MOU and therefore the company had filed a legal suit against them for specific performance of the agreement.

Subsequently the company has entered into a transfer agreement with M/s Windsor Infrastructure Ltd (WIL) for the said project on 22.10.2010 for transferring all its rights, claims, entitlements, liabilities etc for a total consideration of Rs 10 crores out of which Rs 50 Lacs is received from the transferee with the balance consideration of Rs 9.50 Crores shall be paid by WIL to the company on successful completion of the development and construction of project at schedule land without any legal hindrance. The company has to return the advance of Rs 50 Lacs to WIL without any interest or charges in case of any legal hindrance in developing the project.

Thereafter Honble' Senior Civil Judge, Bangalore Rural District Court passed an order on 29th November 2010 by directing Mr Y Rajendra and Others to refund the deposit amount along with interest @ 10 % p.a on the deposit amount from the date of termination of contract till the date of deposit of amount in court to the company against which the company and M/s Windsor Infrastructure Ltd jointly filed an appeal before the Hon'ble High Court of Karnataka which is pending for admission.

2.1 The company was to recover the amount of Rs 8,50,000/- along with interest and litigation expenses arising out of our agreement dated gth1 September, 2003 from Mr. Rakesh Sharma on account of the company's project located at Basant Kunj, Bhopal in which case the company decided to invoke the arbitration clause of the agreement and the arbitration proceedings started on 26th May, 2007. The arbitrator vide its order dated 12th' March, 2009 has given an award in favor of the company and accordingly the execution proceedings has been initiated to recover the amount Rs 4,25,426/- which has been shown under the head Work in progress being the cost of the property.

3. Contingent Liabilities:-

(a) Claims against the company not acknowledged as debt:

LG Electronics India Pvt. Ltd (LG) had filed a suit against the company, Usha India Ltd., and Others for the recovery of Rs. 4,65,02,400/- given by it as security deposit for the premises A-41, Mohan Co-operative Industrial Estate, New Delhi -110044 taken by it on lease from Usha India Ltd. and against the maintenance service agreement for the same premises entered into with the company. The company has denied its liability on the ground that it has already assigned the agreement to Lord Mahadev Trust on 6'h August, 1997 and transferred the security deposit to the said Trust. LG was also intimated about this assignment. However, Honorable Court has passed a part joint decree of Rs. 2,31,25,803/- in favour of LG and the LG filed an execution petition and subsequently the Court directed the ICICI Bank, New friends Colony, New Delhi to transfer a sum of RS.4,50,000/- to LG. The liability on account of above decree has not been ascertained by the court among the parties to the suit. Company is contesting the execution petition filed by LG Electronics India Pvt. Ltd.

(b) Other money for which the company is contingently liable:

Assessing officer has filed an appeal before the ITAT, New Delhi against the order of Commissioner of Income Tax (Appeals) allowing the appeal for deleting the demand of Rs 6,51,050/- towards the penalty imposed by the Assessing Officer U/s 271(1) (C) relating to the assessment year 2003-04. The case was remanded back to CIT(Appeals) for adjudication on merit vide order dated 06-06-2008 by ITAT. However the CIT(Appeals) have not taken the case till date.

4. Balances of Loans and Advances are subject to reconciliation and confirmation.

5. During the year there is no transactions with Related Parties as per the requirements of AS-18 ‘Related Party Disclosures' issued bythe Institute of Chartered Accountants of India.

6. Value of Imports on CIF basis : NIL (P. Year Nil)

7. Expenditure in foreign currency : NIL (P Year Nil)

8. Provision for gratuity and leave encashment has not been provided in the books as none of the employees of the company are eligible for these benefits as on 31.03.2012.

9. Previous year's figures have been regrouped / rearranged wherever necessary.

10. Figures in brackets denotes negative figures.

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Mar 31, 2010

1. Contingent Liabilities:-

(a) (i) The Income Tax Appellate Tribunal in the matter of block assessment for the block period from 1.4.1990 to 14.2.2001 involving addition of Rs 2,28,55,113/- has set aside the order of Assessing Officer based on corresponding appeals filed by the company for Rs 8,35,313/- and by the income tax department for Rs 2,20,19,800/- and referred back the matter to the Assessing Officer to decide the same afresh after the settlement commission order is available in the case of promoters and othergroup concerns making the tax demand zero.

(ii) Assessing officer has filed an appeal before the Income Tax Appellate Tribunal, New Delhi against the order of Commissioner of Income Tax (Appeals) allowing the appeal for deleting the demand of Rs 6,51,050/- towards the penalty imposed by the Assessing Officer U/s 271(1) (C) relating to the assessment year 2003-04.

(b) LG Electronics India Pvt. Ltd ( LG) had filed a suit against Usha India Ltd., Usha Housing Development Co. Ltd. and Others for the recovery of Rs. 4,65,02,400/-given by it as security deposit for the premises A-41, Mohan Co-operative Industrial Estate, New Delhi -110044 taken by it on lease from Usha India Ltd. and against the maintenance service agreement for the same premises entered into with Usha Housing Development Co. Ltd. The company has denied its liability on the ground that it has already assigned the agreement to Lord Mahadev Trust on 6th August, 1997 and transferred the security deposit to the said Trust. LG was also intimated about this assignment. However, Honorable Court has passed a part joint decree of Rs. 2,31,25,803/- in favour of LG and the LG filed an execution petition and subsequently the Court directed the ICICI Bank, New friends Colony, New Delhi to transfer a sum of RS.4,50,000/- to LG. The liability on account of above decree has not been ascertained by the court among the parties to the suit. Company is contesting the execution petition filed by LG electronics India Pvt.Ltd.

2. a) C- SCHEME, JAIPUR PROJECT :

The company had entered into an agreement dated 28th September 1993 with R. L. Baiswala & Sons HUF for purchase of a Plot No.D-71, Satya Villa, Jamuna Lai Bajaj Marg, C-Scheme, Jaipur. But due to objection raised by the other members of HUF for selling the plot to the company, the vendor of the land could not transfer the land and hand-over its possession to the company.

District Trial Court in Jaipur has decreed the suit to the extent of refund of the money of Rs 17 lacs to company plus interest @18% plus cost of the suit but dismissed the prayer for specific performance and thereafter company filed an appeal with the Rajasthan High Court for specific performance. Meanwhile the company also filed another appeal with High Court of Rajasthan praying for injunction order against the defendants restraining them from sale of the property. The amount of 8,39,214/- including the litigation expenses of Rs 755000/-have been included in work in progress. The High Court has issued a injunction order dated 08.10.2001 in favour of the Company. There has been no change in the status of the project during the year.

b) AIRPORT ROAD, BANGALORE PROJECT:

The company had signed a Memorandum of Understanding (MOU) on 28.03.1995 with Mrs. P. Jayamma, Mrs. J. Savithramma, and Mrs. P. Nagarathna for the purpose of putting up residential and commercial complex on the property bearingS.No. 170 and 172 of Kodihalli Village, Varthur, Hobli, Bangalore, South Taluk. On completion of the said project each party was to share 50% of the built-up area including terrace right.

Company had been forced to keep the project suspended because of the defect in title deeds of the property and acquisition of some part of property by the Bangalore Development Authority (BDA).Company had filed a legal suit against the party in the City Civil Judge at Bangalore, for the specific performance of the agreement and in the alternative for recovery of entire amount paid together with interest of 21 % per annum. The company has Paid Rs 30 Lacs against the J V agreement and as perthe agreement the possession of the aforesaid land is with the company. The amount of Rs.13,72,878/- including litigation expenses of Rs 3,70,000/- has been shown under the head work in progress There has been no change in the status of the project during the year.

c) BROOKEFIELD PROJECT, BANGALORE :

The Company entered into an MOU for joint development of residential and/or commercial complexes at Hoodi Village, K.R.Puram, Bangalore, South Taluk on 26th August, 1999 with Mr.Y.Rajendra and others.

However the project has not yet been sanctioned by the Bangalore Development Authority due to some defect in the title of the property, which is to be complied by the owners. As per agreement, the possession of aforesaid land is already with the company. The company served legal notice to the Second Party to go ahead as perthe terms and conditions of MOU. In spite of this legal notice, Second Party failed to perform his obligations under the MOU and the company filed a legal suit against them for specific performance of the agreement. The amount of Rs. 12,48,721/-including litigation expenses of Rs 6,19,000/- has been shown under the head work in progress. There has been no change in the status of project during the year.

d) USHA NIKETAN, D-76, GHIA MARG, BENIPARK.JAIPUR:

As per collaboration agreement dated 7th Jan, 1994, the Company has completed the project and accordingly, as perterms and conditions of the agreement, requested the owner of the land Mr Anil Parasharto refund of Rs 12 lacs paid to him as refundable security. On his failure to pay the amount, the company filled a legal suit for recovery of the above said amount in the District court Delhi. The amount of Rs 1200000/-has been shown as deposits.

e) BASANT KUNJ , BHOPAL:

The company was to recover the amount of Rs 8,50,000/-along with interest and litigation expenses arising out of our agreement dated 9th September, 2003 from Mr. Rakesh Sharma and therefore the company decided to invoke the arbitration clause of the agreement and the arbitration proceedings started on 26th May, 2007. The arbitrator vide its order dated 12th March, 2009 has given an award in favor of the company and accordingly the execution proceedings has been initiated to recoverthe amount. Rs 4,25,426/-has been shown underthe head Work in progress being the cost of the property

3. Projects amounting to Rs 38,86,239/- is shown under the head work in progress against which litigations are pending in different courts as explained in note no 3.

4. Balances of Loans and Advances are subject to reconciliation and confirmation.

5. As per AS 17 on segment Reporting there is no reportable segment other than the business of real estate. Hence no separate disclosure has been made.

6. During the year there is no transactions with Related Parties as per the requirements of AS-18 Related Party Disclosuresissued by the Institute of Chartered Accountants of India.

7. In accordance with the provisions of the Accounting Standard-22 on "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India, the company has recognised deferred tax assets of Rs 86,00,803/- and

8. No Remuneration was paid to directors during the year.

9. Net realizable value is determined project wise and is based upon the available information with the company, considering the market value of the flatted area.

10. Additional information pursuant to the provisions under paragraph 3,4C and 4D Part -II of Schedule VI to the Companies Act1956.

a) The company is engaged in the business of real estate development. In view of the nature of business it is not practicable to give the quantitative details regarding the work in progress.

b) The Quantitative information in respect of finished space is not given as there is no stock of finished space.

11. ASSUMPTION OF THE COMPANY AS GOING CONCERN

Management of the company is of the opinion that company is a going concern as the management is trying its best to recover some of the pending dues and is taking suitable steps for revival of the company. During the year Delhi Stock Exchange has revoked the suspension of trading in the shares of the company. Accordingly, the securities of the company are re-admitted to dealings w.e.f. 12.10.2009 subject to due compliance of Regulations 8 of SEBI (SAST) Regulations,1997.

12. There is no Small Scale Industrial undertaking to which the company owes sum, which is outstanding for more than 30 days as on 31.03.2010 as per information available with the company.

13. Provision for gratuity and leave encashment has not been provided in the books as none of the employees of the company are eligible forthese benefits as on 31.03.2010.

14. Previous years figures have been regrouped / rearranged wherever necessary. Figure in brackets indicate previous year figure. Figures have been rounded off to the nearest rupee.

15. From Schedule-1 to Schedule-8 form an integral part of the accounts and duly authenticated.

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Mar 31, 2009

1. Contingent Liabilities:-

(a)(i) An appeal is pending before the Income Tax Appellate Tribunal for the deletion of demand of Rs.8,35,313/- raised by Commissioner of Income Tax, (Appeals) New Delhi for the block assessment of block period from 1.4.1990 to 14.2.2001.

(ii) Assessing officer has also filed an appeal before the Income Tax Appellate Tribunal, New Delhi against the relief of Rs 2,20,19,800/- allowed to the company by the Commissioner of Income Tax (Appeals) for the block assessment of block period from 1.4.1990 to 14.2.2001.

(iii) Assessing officer has filed an appeal before the Income Tax Appellate Tribunal, New Delhi against the order of Commissioner of Income Tax (Appeals) allowing the appeal for deleting the demand of Rs 6,51,050/- towards the penalty imposed by the Assessing Officer U/s 271(1) (C) relating to the assessment year 2003-04.

2-. LG Electronics India Pvt. Ltd ( LG) had filed a suit against Usha India Ltd., Usha Housing Development Co. Ltd. and Others for the recovery of Rs. 4,65,02,400/- given by it as security deposit for the premises A-41, Mohan Co-operative Industrial Estate, New Delhi -110044 taken by it on lease from Usha India Ltd. and against the maintenance service agreement for the same premises entered into with Usha Housing Development Co. Ltd. The company has denied its liability on the ground that it has already assigned the agreement to Lord Mahadev Trust on 6th August, 1997 and transferred the security deposit to the said Trust. LG was also intimated about this assignment. However, Honorable Court has passed a part joint decree of Rs. 2,31,25,803/- in favour of LG and the LG filed an execution petitipn and subsequently the Court directed the ICICI Bank, New friends Colony, New Delhi to transfer a sum of RS.4,50,000/- to LG. The liability on account of above decree has not been ascertained by the court among the parties to the suit. Company is contesting the execution petition filed by LG electronics India Pvt.Ltd.

3. a) C- SCHEME, JAIPUR PROJECT :

The company had entered into an agreement dated 28th September 1993 with R. L. Baiswala & Sons HUF for purchase of a Plot No.D-71, Satya Villa, Jamuna Lai Bajaj Marg, C-Scheme, Jaipur . But due to objection raised by the other members of HUF for selling the plot to the company, the vendor of the land could not transfer the land and hand-over its possession to the company.

District Trial Court in Jaipur has decreed the suit to the extent of refund of the money of Rs 17 lacs to company plus interest @ 18% plus cost of the suit, but dismissed the prayer for specific performance and thereafter company filed an appeal with the Rajasthan High Court for specific performance. Meanwhile the company also filed another appeal with High Court of Rajasthan praying for injunction order against the defendants restraining them from sale of the property. The amount of 8,39,214/- including the litigation expenses of Rs 755000/- have been included in work in progress. The High Court has issued a injunction order dated 08.10.2001 in favour of the Company. There has been no change in the status of the project during the year.

b) AIRPORT ROAD. BANGALORE PROJECT:

The company had signed a Memorandum of Understanding (MOU) on 28.03.1995 with Mrs. P. Jayamma, Mrs. J. Savithramma, and Mrs. P. Nagarathna for the purpose of putting up residential and commercial complex on the property bearing S.No. 170 and 172 of Kodihalli Village, Varthur, Hobli, Bangalore, South Taluk. On completion of the said project each party was to share 50% of the built-up area including terrace right.

Company had be,en forced to keep the project suspended because of the defect in title deeds of the property and acquisition of some part of property by the Bangalore Development Authority (BDA).Company had filed a legal suit against the party in the City Civil Judge at Bangalore, for the specific performance of the agreement and in the alternative for recovery of entire amount paid together with interest of 21% per annum. The company has Paid Rs 30 Lacs against the J V agreement and as per the agreement the possession of the aforesaid land is with the company. The amount of Rs. 13,72,878/- including litigation expenses of Rs 3,70,000/- has been shown under the head work in progress There has been no change in the status of the project during the year.

c) BROOKEFIELD PROJECT, BANGALORE :

The Company entered into an MOU for joint development of residential and/or commercial complexes at Hoodi Village, K.R.Puram, Bangalore, South Taluk on 26th August, 1999 with Mr.Y.Rajendra and others.

However the project has not yet been sanctioned by the Bangalore Development Authority due to some defect in the title of the property, which is to be complied by the owners. As per agreement, the possession of aforesaid land is already with the company. The company served legal notice to the Second Party to go ahead as per the terms and conditions of MOU. In spite of this legal notice, Second Party failed to perform his obligations under the MOU and the company filed a legal suit against them for specific performance of the agreement. The amount of Rs. 12,48,721/- including litigation expenses of Rs 6,19,000/- has been shown under the head work in progress. There has been no change in the status of project during the year.

d) USHA NIKETAN, D-76, GHIA MARG, BENIPARKJAIPUR:

As per collaboration agreement dated 7th Jan, 1994, the Company has completed the project and accordingly, as per terms and conditions of the agreement, requested the owner of the land Mr Anil Parashar to refund of Rs 12 lacs paid to him as refundable security. On his failure to pay the amount, the company filled a legal suit for recovery of the above said amount in the District court Delhi. The amount of Rs 1200000/-has been shown as deposits.

e) BASANT KUNJ . BHOPAL:

The company was to recover the amount of Rs 8,50,000/- along with interest and litigation expenses arising out of our agreement dated 9 September, 2003 from Mr. Rakesh Sharma and therefore the company decided to invoke the arbitration clause of the agreement and the arbitration proceedings started on 26th May, 2007. The arbitrator vide its order dated 12th March, 2009 has given an award in favor of the company and accordingly the execution proceedings has been initiated to recover the amount. Rs 4,25,426/- has been shown under the head Work in progress being the cost of the property

4. Projects amounting to Rs 38,86,239/- is shown under the head work in progress against which litigations are pending in different courts as explained in note no 3.

5. Balances of Loans and Advances are subject to reconciliation and confirmation.

6. As per AS 17 on segment Reporting there is no reportable segment other than the business of real estate. Hence no separate disclosure has been made.

7. During the year there is no transactions with Related Parties as per the requirements of AS-18 Related Party Disclosures issued by the Institute of Chartered Accountants of India.

8. Provision for deferred tax on account of carry forward losses has not been made as it is not reasonably certain that sufficient future taxable income will be available against which deferred tax assets can be realized

9. No Remuneration was paid to directors during the year.

10. Net realizable value is determined project wise and is based upon the available information with the company, considering the market value of the flatted area.

11. Additional information pursuant to the provisions under paragraph 3,4C and 4D Part -II of Schedule VI to the Companies Act1956.

a) The company is engaged in the business of real estate development. In view of the nature of business it is not practicable to give the quantitative details regarding the work in progress.

b) The Quantitatiye information in respect of finished space is not given as there is no stock of finished space.

12. ASSUMPTION OF THE COMPANY AS GOING CONCERN

In spite of the continuous losses, pending legal cases, suspension of listing from Bombay Stock Exchange and Delhi Stock Exchange, management of the company is of the opinion that company is a going concern as the management is trying its best to recover some of the pending dues and is taking suitable steps for revival of the company. The company has also applied to Delhi Stock Exchange for re-listing/trading of its shares under the amnesty scheme of Delhi stock exchange.

13. There is no Small Scale Industrial undertaking to which the company owes sum, which is outstanding for more than 30 days as on 31.03.2009 as per information available with the company.

14. Since there is no taxable income, no provision for income tax has been made.

15. Previous years figures have been regrouped / rearranged wherever necessary. Figure in brackets indicate previous year figure. Figures have been rounded off to the nearest rupee.

16. From schedule -1 to schedule-6 form an integral part of the accounts and duly authenticated.