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Notes to Accounts of Housing Development & Infrastructure Ltd.

Mar 31, 2018

Note :1

The fair value of investment property has been determined having reference to the market values as prescribed under the ready recknor published by a competent authority, as the company believes that the current market price of similar properties in the vicinity is the best evidence of the fair value of such investment property. The FV measurement has been categorised as Level

2 based on inputs to valuation technique used.

Terms / rights attached to shares :

The Company has only one class of shares i.e. equity shares of Rs.10/- each. Shareholders are entitled to vote in accordance with their shareholding in the Company and receive dividend as and when declared by the Company.

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 shareholder.

Details of securities and other terms and conditions are as under :-

I) Secured Redeemable Non Convertible Debentures : -

Secured Redeemable Non Convertible Debentures (Non listed) : -

a) Nil (Previous year 2,267) 13.25% Secured Redeemable Non - Convertible Debentures of '' 10.00 lacs each fully paid, interest payable monthly are issued on Private Placement basis to Life Insurance Corporation of India. The Debentures are secured by mortgage of 2,88,940 Sq. mtrs immovable properties situated at Village Doliv and Village Khardi, District Thane and further secured by mortgage of first to nine floors except 3rd, 4th and 6th floors of commercial building admeasuring 17,894.65 Sq. mtrs. situated at HDIL Towers, Survey No. 341(pt) CTS No. 608(pt), Bandra (East), Mumbai. These Secured Non - Convertible Debentures are redeemable in equal monthly instalment of '' 100.00 lacs each commencing from 5th October, 2013.

b) Securities of the Debentures issued to Life Insurance Corporation of India are shared on pari-passu basis for the term loan from Life Insurance Corporation of India. (Also refer note : 20(III)(b))

II) All the above debentures have been personally guaranteed by

i) Executive Chairman of the Company

ii) Vice Chairman and Managing Director of the Company

Details of securities and other terms and conditions are as under :-

I) Loans repayable on demand from Scheduled Bank :-

Punjab and Maharashtra Co-operative Bank Limited :-

Secured by pledge of fixed deposit receipts with the bank, current rate of interest 13% (Previous year 13%).

II) Term Loans from Scheduled Banks :-

a) Central Bank of India :-

Secured by registered mortgage of immovable properties admeasuring 40,468.56 Sq. mtrs. situated at CTS No. 637A, Premier

Road, Village Kurla, Mumbai. Rate of interest base rate 5 % p.a. payable monthly.

b) The Jammu and Kashmir Bank :-

i) Term loan - I - Interest rate is base rate 3.50% p.a. payable monthly.

ii) Term Loan - II - Secured by 1st Charge on the cash flows, receivables and project agreements/ project escrow account and project DSRA of the free sale area, and 1st charge by way of mortgage of development right. Interest rate is base rate 3.00 % p.a. payable monthly.

iii) Term Loan - III - Secured by 1st Charge on the cash flows, receivables, all current assets of the project and project agreements/ project escrow account and project DSRA of the free sale area and 1st charge by way of mortgage of development rights. Interest rate is base rate 3.00 % p.a. payable monthly.

All the above loans are secured by immovable properties admeasuring 2,91,610 Sq. mtrs. situated at Village Kopri, District

Thane, comprising of various survey numbers, owned by Privilege Power and Infrastructure Private Limited, a wholly owned subsidiary of the Company.

c) Allahabad Bank :-

i) Secured by registered mortgage over the total construction area of 1,12,140.10 Sq. mtrs. which includes free sale area admeasuring approximately 67,732.72 Sq. mtrs. at CTS no. 551/27,552(pt), 552/1, 552/5 to 12 of Village Nahur, Mumbai together with the structure standing thereon and further secured by 45,342 Sq. mtrs. of immovable properties situated at Village Chandansar, Dist. Thane, comprising of various survey numbers, owned by Privilege Power and Infrastructure Private Limited, a wholly owned subsidiary of the Company. Rate of Interest base rate 5% p.a. payable monthly.

ii) Secured by exclusive charge on Escrow account as well as equitable mortgage of immovable properties admeasuring 54,970 Sq.mtrs at Village Maljipada, Dist. - Thane, comprising of various survey numbers. Rate of interest is base rate 5% p.a. payable monthly.

iii) Secured by exclusive charge on all projects assets of the Company at Mulund and Palghar. Rate of interest is base rate 5% p.a. payable monthly.

d) Syndicate Bank :-

Secured by pari passu charge over escrow of Cash flows arising out of the project Whispering Tower and further secured by immovable properties admeasuring 87,220 Sq.mtrs. situated at Village Doliv, Koshimbe, Dist. Thane, comprising of various survey numbers, owned by Privilege Power and Infrastructure Private Limited, a wholly owned subsidiary of the Company. Rate of Interest base rate 3% p.a. payable monthly.

e) Yes Bank Limited:-

Secured by exclusive charge on Projects Metropolis, Galaxy and Majestic Towers on development rights. Repayable 33.33% every year from 36th month of its disbursement

The Company has proposed One time settlement to all it''s lender of its outstanding banking facilities and Company has received sanction for such proposal from some lenders. In accordance with such approval, payments will be made to banks and upon full & final payments, respective securities mortgaged will be released by the banks.

III) Term Loans from Financial Institution :-

a) IL & FS - PMDO:-

i) Rate of interest is 13.50% p.a. payable monthly.

ii) Rate of interest of the Funded interest term loan is 13.50% p.a. payable monthly.

Both the loans are secured by registered mortgage of immovable properties admeasuring 1,21,970 Sq. mtrs. situated at Sasunavghar, comprising of various survey numbers, owned by the Company and 96,750 Sq. mtrs. situated at village Doliv, 1,60,390 Sq. mtrs. situated at village Khardi, 94,710 Sq. mtrs. situated at Dahisar and 66,640 Sq. mtrs. situated at Kasarali, comprising of various survey numbers, owned by Privilege Power and Infrastructure Private Limited, a wholly owned subsidiary of the Company.

The Company has proposed One time settlement to all it''s lender of its outstanding banking facilities and Company has received sanction for such proposal from some lenders. In accordance with such approval, payments will be made to banks and upon full & final payments , respective securities mortgaged will be released by the banks.

b) Life Insurance Corporation of India :-

i) Term loan is secured by registered mortgage of immovable properties situated at Village Doliv and Village Khardi admeasuring 2,88,940 Sq. mtrs. comprising of various survey numbers and further secured by mortgage of first to nine floors except 3rd, 4th and 6th floors of commercial building area admeasuring 18,194.54 Sq. mtrs. situated at HDIL Towers, Bandra (East), Mumbai. Rate of interest is 13% p.a. payable monthly.

ii) Securities of the Term loan from Life Insurance Corporation of India are shared on pari-passu basis along with the security for Non Convertible Debentures issued to Life Insurance Corporation of India. (Also refer to Note No. : 16 (I)).

c) Yes Bank (Suraksha Asset Reconstruction Company Private Limited) :-

Yes bank has assigned its loan to Suraksha Asset Reconstruction Company Private Limited. The terms of the loan remains the same i.e. the loan is secured by exclusive charge on Projects Metropolis, Galaxy and Majestic Towers on development rights.

IV) All the above loans have been personally guaranteed by

i) Executive Chairman of the Company

ii) Vice Chairman and Managing Director of the Company

Micro, Small and Medium Enterprises

Disclosure of payable to vendors as defined under the "Micro, Small and Medium Enterprise Development Act, 2006" is based on the information available with the Company regarding the status of registration of such vendors under said act, as per the intimation received from them on requests made by the Company. There are no overdue principal amounts/interest payable amounts for delayed payments to such vendors at the Balance Sheet date. There are no delays in payment made to such suppliers during the year or for any earlier years and accordingly there is no interest paid or outstanding interest in this regard in respect of payments made during the year or brought forward from previous years.

As per IND AS 19 "Employee benefits", the disclosures as defined in the Accounting Standard are given below :

The Company has created Employee''s Group Gratuity Fund with Life Insurance Corporation of India, and obtained Group Gratuity Assurance Policy from LIC for the benefit of employees.

A Gratuity Plan :-

Defined Benefit Plan

The employees'' gratuity fund scheme managed by a Trust (Life Insurance Corporation of India) is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using 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.

2. FINANCIAL INSTRUMENTS

The significant accounting policies, including the criteria of recognition, the basis of measurement and the basis on which income and expenses are recognised, in respect of each class, financial liability and equity instruments are disclosed in note no 1.1 (l) to the financial statements.

Carrying amount of Investment, Trade Receivables, Cash and Cash Equivalent, Bank balances, Other financial Assets, Trade payables and Other financial liabilities as at 31st March, 2018 and 31st March, 2017 approximate the Fair Value because of their short term nature. Difference between carrying amount and fair values of bank deposits, other financial assets, other financial liabilities and borrowings subsequently measured at amortised cost is not significant each of year presented.

B) Fair value hierarchy

The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are either observable or unobservable and consists of the following three levels :

Level 1 - Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2 - Inputs are other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

Level 3 - Inputs are not based on observable market data (unobservable inputs). Fair values are determined in whole or in part using a valuation model based on assumption that are neither supported by prices from observable current market transactions in the same instrument nor are they based on available market data.

The Company has fair valued the transaction of financial guarantee (under Other Financial Liabilities) on the basis of internal comparable of a similar transaction with an unrelated party. The fair value so determined will therefore be classified under Level 2. The investments included in Level 3 of fair value hierarchy have been valued using the cost approach to arrive at their fair value. The cost of unquoted investments approximate the fair value because there is a wide range of possible fair valued measurements and the cost represents estimate of fair valued within that range.

C) Financial risk management

i) Risk management framework

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

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

c) The Audit Committee overseas how management monitors compliance with the Company''s risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Company. The Audit Committee is assisted in its oversight role by internal audit. Internal audit undertakes both regular and adhoc reviews of risk management controls and procedures, the results of which are reported to the Audit Committee.

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

a) Credit risk

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

The carrying amount of financial assets represents the maximum credit exposure.

- Trade Receivables

Customer credit risk is managed by requiring customers to pay advances through progress billings before transfer of ownership, therefore substantially eliminating the Company''s Credit risk in this respect.

The Company''s credit risk with regard to trade receivables has a high degree of risk diversification, due to the large number of projects of vary in sizes and types with numerous different customer categories in a large number of geographical markets.

Based on prior experience and an assessment of the current economic environment, management believes there is no credit risk provision required. Also the Company does not have any significant concentration of credit risk.

- Investment in Debt securities, Loans to Related Parties and Deposits

The Company has investments in non-convertible preference shares, loans to related parties and project deposits. Based on prior experience and assessments performed by the management such financial Assets are not impaired as on the reporting date.

- Cash and Bank Balances

Credit risk from cash and bank balances is managed by the Company''s treasury department in accordance with the Company''s policy.

b) Liquidity risk

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

Management monitors rolling forecasts of the Company''s liquidity position on the basis of expected cash flows. This monitoring includes financial ratios and takes into account the accessibility of cash and cash equivalents.

c) Market risk

Market risk is the risk that changes in market prices such as foreign exchange rate and interest rates will affect the Company''s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return.

- Currency risk

Currency risk is not material, as the Company''s primary business activities are within India and does not have significant exposure in foreign currency.

- Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instruments will fluctuate because of changes in market interest rates. The management is responsible for the monitoring of the Company''s interest rate position. Various variables are considered by the management in structuring the Company''s borrowings to achieve a reasonable, competitive, cost of funding.

Fair value sensitivity analysis for fixed rate instruments

Fixed rate financial assets / liabilities are carried out at amortised cost. Therefore they are not subject to interest rate risk since, neither the carrying amount nor the future cash flows will fluctuate because of changes in market interest rates.

Cash flow sensitivity analysis for variable rate instruments

A reasonably possible change of 100 basis points in interest rate would have resulted in variation in the interest expense for the Company by the amounts indicated in the table below. Given that the Company capitalises interest to the cost of inventory to the extent permissible, the amounts indicated below may have an impact on reported profits over the life cycle of projects to which such interest is capitalised. This calculation also assumes that the change occurs at the balance sheet date and has been calculated based on risk exposure outstanding as at that date. The year end balances are not necessarily representative of the average debt outstanding during the period.

3. Capital Management

Equity share capital and other equity are considered for the purpose of Company''s capital management.

The Company manages its capital so as to safeguard its ability to continue as a going concern and to optimise returns to shareholders. The capital structure of the Company is based on management''s judgement of its strategic and day-to-day needs with a focus on total equity so as to maintain investor, creditors and market confidence.

4. POST REPORTING EVENTS:

No adjusting or significant non-adjusting events have occurred between the reporting date and the date of authorisation.

5. AUTHORISATION OF FINANCIAL STATEMENTS

The financial statements for the year ended 31st March, 2018 were approved by the Board of Directors on 30th May, 2018

6. The management and authorities have the power to amend the Financial Statements in accordance with Section 130 and 131 of The Companies Act, 2013.

7. The IT Department have appealed against the IT Tribunal''s order, advising the IT Department for reassessment of Computation of Income of the block assessment of Income Tax for the Assessment Year 2009-10, 2010-11, 2011-12. The matter is Pending.

8. The figures for the corresponding previous year have been regrouped/reclassified wherever necessary, to make them comparable.

Mar 31, 2017

1. Corporate Information

Housing Development and Infrastructure Limited (âHDILâ) (CIN : L70100MH1996PLC101379) is engaged primariliy in the business of real estate construction, development and other related activities. The Company is public limited Company incorporated and domiciled in india having its registered office at HDIL Towers, 9^th Floor, Anant Kanekar Marg, Bandra (East), Mumbai- 400 050. The Company is listed on BSE Limited (BSE) and The National Stock Exchange of India Limited (NSE).

Terms/rights attached to shares :

The Company has only one class of shares i.e. equity shares of Rs. 10/- each. Shareholders are entitled to vote in accordance with their shareholding in the Company and receive dividend as and when declared by the Company.

*In accordance with the terms of the issue of NCD, the Company has partially redeemed the Debenture in tranches and hence aggregate amount outstanding vis a vis numbers of outstanding debentures do not tally.

Details of securities and other terms and conditions are as under I) Secured Redeemable Non Convertible Debentures : -

a) Secured Redeemable Non Convertible Debentures (Listed) : -

Nil (Previous year 2,425) 12% Secured Redeemable Non - Convertible Debentures of Rs. 10.00 Lacs each fully paid, interest payable quarterly are issued on Private Placement basis to various banks. These Debentures are Secured by mortgage of immovable properties admeasuring to about 7,01,992 Sq. mtrs. situated at village Kasarali, District Thane and 1,47,341 Sq. mtrs. situated at Village Kopri, District Thane, owned by Privilege Power and Infrastructure Private Limited, a wholly owned subsidiary of the Company. These Secured Non - Convertible Debentures are redeemable commencing from December, 2012 from first tranche onwards at 33% each in third and fourth year and 34% at the end of fifth year.

b) Secured Redeemable Non Convertible Debentures (Non listed) : -

a) 2,267 (Previous year 2,267)13.25% Secured Redeemable Non - Convertible Debentures of Rs. 10.00 lacs each fully paid, interest payable monthly are issued on Private Placement basis to Life Insurance Corporation of India. The Debentures are secured by mortgage of 2,88,940 Sq. mtrs immovable properties situated at Village Doliv and Village Khardi, District Thane and further secured by mortgage of first to nine floors except 3^rd, 4^th and 6^th floors of commercial building admeasuring 17,894.65 Sq. mtrs. situated at HDIL Towers, Survey No. 341(pt) CTS No. 608(pt), Bandra (East), Mumbai. These Secured Non - Convertible Debentures are redeemable in equal monthly instalment of Rs. 100.00 lacs each commencing from 5^th October, 2013.

b) Securities of the Debentures issued to Life Insurance Corporation of India are shared on pari-passu basis for the term loan from Life Insurance Corporation of India. (Also refer note : 21(III)(b))

II) All the above debentures have been personally guaranteed by

i) Executive Chairman of the Company

ii) Vice Chairman and Managing Director of the Company

Details of securities and other terms and conditions are as under :-

I) Loans repayable on demand from Scheduled Bank :-Punjab and Maharashtra Co-operative Bank Limited :-

Secured by pledge of fixed deposit receipts with the bank, current rate of interest 9.25% (Previous year 13%)

II) Loans from Scheduled Banks :-

a) Central Bank of India :-

i) Secured by registered mortgage of immovable properties admeasuring 40,468.56 Sq. mtrs. situated at CTS No. 637A, Premier Road, Village Kurla, Mumbai. Repayable in 40 monthly installments (Step up installments) of Rs. 300.00 Lacs each commencing from December, 2013 to March 2014, Rs. 349.00 Lacs each commencing from April, 2014 to March 2015 and Rs. 500.00 Lacs each commencing from April, 2015 to March 2017. Rate of interest base rate 5% p.a. payable monthly.

b) The Jammu and Kashmir Bank :-

i) Term loan - I - Repayable in 12 quarterly installments of Rs. 834.00 lacs each commencing from September 2014. Interest rate is base rate 3.50% p.a. payable monthly.

ii) Term Loan - II - Secured by 1^st Charge on the cash flows, receivables and project agreements/project escrow account and project DSRA of the free sale area, and 1^st charge by way of mortgage of development right. Loan repayable in 20 quarterly installments of Rs. 750.00 Lacs each commencing from September 2016. Interest rate is base rate 3.00% p.a. payable monthly.

iii) Term Loan - III - Secured by 1^st Charge on the cash flows, receivables, all current assets of the project and project agreements/ project escrow account and project DSRA of the free sale area and 1^st charge by way of mortgage of development rights. Repayable in 16 quarterly installments of Rs. 938.00 Lacs each commencing from September, 2017. Interest rate is base rate 3.00% p.a. payable monthly.

All the above loans are secured by immovable properties admeasuring 2,91,610 Sq. mtrs. situated at Village Kopri, District Thane, comprising of various survey numbers, owned by Privilege Power and Infrastructure Private Limited, a wholly owned subsidiary of the Company.

c) Allahabad Bank :-

ii) Secured by exclusive charge on Escrow account as well as equitable mortgage of immovable properties admeasuring 54,970 Sq.mtrs at Village Maljipada, Dist. - Thane, comprising of various survey numbers. Repayable within 12 equal quarterly installments of Rs. 625.00 Lacs each commencing from December 2014. Rate of interest is base rate 5% p.a. payable monthly.

iii) Secured by exclusive charge on all projects assets of the Company at Mulund and Palghar. Repayable in 4 equal quarterly installments of Rs. 425.00 Lacs each commencing from March, 2017. Rate of interest is base rate 5% p.a. payable monthly.

d) Syndicate Bank :-

e) Yes Bank Limited:-

Secured by exclusive charge on Projects Metropolis, Galaxy and Majestic Towers on development rights. Repayable 33.33% every year from 36^th month of its disbursement

III) Term Loans from Financial Institution :-

a) IL & FS - PMDO:-

i) Repayable in 18 quarterly installments of the staggered amount commencing from October, 2015. Rate of interest is 13.50% p.a. payable monthly.

ii) Repayable in 12 quarterly installments commencing from February, 2016. Rate of interest of the Funded interest term loan is 13.50% p.a. payable monthly.

b) Life Insurance Corporation of India :-

i) Term loan is secured by registered mortgage of immovable properties situated at Village Doliv and Village Khardi admeasuring 2,88,940 Sq. mtrs. comprising of various survey numbers and further secured by mortgage of first to nine floors except 3^rd, 4^th and 6^th floors of commercial building area admeasuring 18,194.54 Sq. mtrs. situated at HDIL Towers, Bandra (East), Mumbai. Repayable in 12 quarterly installments of Rs. 1,688.15 Lacs each commencing from September, 2016. Rate of interest is 13% p.a. payable monthly.

IV) All the above loans have been personally guaranteed by

i) Executive Chairman of the Company

ii) Vice Chairman and Managing Director of the Company

As per Ind AS 19 âEmployee benefitsâ, the disclosures as defined in the Accounting Standard are given below :

The Company has created Employeeâs Group Gratuity Fund with Life Insurance Corporation of India and obtained Group Gratuity Assurance Policy from LIC for the benefit of employees.

A Gratuity Plan :-

Defined Benefit Plan

The employeesâ gratuity fund scheme managed by a Trust (Life Insurance Corporation of India) is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using 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.

2. FINANCIAL INSTRUMENTS

The significant accouting policies, including the criteria of recognition, the basis of measurement and the basis on which income and expenses are recognised, in respect of each class, financial liability and equity instruments are disclosed in note no 1.1 (l) to the financial statements.

A) Financial Assets and Liabilities

The Carrying values of Financial Assets and Liabilities have been given under :

Carrying amount of Investment, Trade Receivables, Cash and Cash Equivalent, Bank balances, Other financial Assets, Trade payables and Other financial liabilities as at 31^st March, 2017, 31^st March, 2016 and 1^st April, 2015 approximate the Fair Value because of their short term nature. Difference between carrying amount and fair values of bank deposits, other financial assets, other financial liabilities and borrowings subsequenty measured at amortised cost is not significant each of year presented.

B) Fair value hierarchy

The fair value hierachy is based on inputs to valuation techniques that are used to measure fair value that are either observable or unobservable and consists of the following three levels :

Level 1 - Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2 - Inputs are other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

The Company has fair valued the transaction of financial guarantee (under Other Financial Liabilities) on the basis of internal comparatble of a similar transaction with an unrelated party. The fair value so determined will therefore be classifed under Level 2. The investments included in Level 3 of fair value hierarchy have been valued using the cost approach to arrive at their fair value.

The cost of unquoted investments approximate the fair value because there is a wide range of possible fair valued measurements and the cost represents estimate of fair valued within that range.

C) Financial risk management

i) Risk management framework

a) The Companyâs Board of Directors have overall responsibility for the establishment and oversight of the Companyâs risk management framework. The Board of Directors have established the risk management committee, which is responsible for developing and monitoring the risk management policies. The Company reports regularly to the Board of Directors on its activities.

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

c) The Audit Committee overseas how management monitors compliance with the Companyâs risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Company. The Audit Committee is assisted in its oversight role by internal audit. Internal audit undertakes both regular and adhoc reviews of risk management controls and procedures, the results of which are reported to the Audit Committee.

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

a) Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Companyâs receivables from customers, investments in debt securities, loans given to related parties and project deposits.

The carrying amount of financial assets represents the maximum credit exposure.

- Trade Receivables

The Companyâs credit risk with regard to trade receivables has a high degree of risk diversification, due to the large number of projects of vary in sizes and types with numerous different customer categories in a large number of geographical markets.

Based on prior experience and an assessment of the current economic environment, management believes there is no credit risk provision required. Also the Company does no thave any significant concentrarion of credit risk.

The ageing of trade receivables is as follows:

The amounts reflected in the table above are not impaired as on the reporting date.

- Investment in Debt securities, Loans to Related Parties and Deposits

The Company has investments in non-convertible preference shares, loans to related parties and project deposits. Based on prior expreriance and assessments performed by the management such financial Assets are not impaired as on the reporting date.

- Cash and Bank Balances

Credit risk from cash and bank balances is managed by the Companyâs treasury department in accordance with the Companyâs policy.

b) Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Companyâs approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Companyâs reputation.

Management monitors rolling forecasts of the Companyâs liquidity position on the basis of expected cash flows. This monitoring includes financial ratios and takes into account the accessibility of cash and cash equivalents.

- Exposure to Liquidity risk

The table below provides details regarding the contractual maturities of financial liabilities including estimated interest payments as at 31^st March, 2017

c) Market risk

Market risk is the risk that changes in market prices such as foreign exchange rate and interest rates will affect the Companyâs income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return.

- Currency risk

Currency risk is not material, as the Companyâs primary business activiities are within India and does not have significant exposure in foreign currency.

- Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instruments will fluctuate because of changes in market interest rates. The management is responsible for the monitoring of the Companyâs interest rate position. Various variables are considered by the management in structuring the Companyâs borrowings to achieve a reasonable, competitive, cost of funding.

Fair value sensitivity analysis for fixed rate instruments

Fixed rate financial assets/liabilities are carried out at amortised cost. Therefore they are not subject to interest rate risk since, neither the carrying amount nor the future cash flows will fluctuate because of changes in market interest rates.

Cash flow sensitivity analysis for variable rate instruments

A reasonably possible change of 100 basis points in interest rate would have resulted in variation in the interest expense for the Company by the amounts indicated in the table below. Given that the Company capitalises interest to the cost of inventory to the extent permissible, the amounts indicated below may have an impact on reported profits over the life cycle of projects to which such interest is capitalised. This calculation also assumes that the change occurs at the balance sheet date and has been calculated based on risk exposure outstanding as at that date. The year end balances are not necessarily represntative of the average debt outstanding during the period.

3. Specified Bank Notes Disclosure

In accordance with the Notification No. G.S.R. 308(E) issued by the Ministry of Corporate Affairs dated 30^th March, 2017, the details of Specified Bank Notes (SBN) held and trasacted during the period 8^th November, 2016 to 30^th December, 2016 is provided below :

4. Capital Management

Equity share capital and other equity are considered for the purpose of Companyâs capital management.

The Company manages its capital so as to safeguard its ability to continue as a going concern and to optimise returns to shareholders. The capital structure of the Company is based on managementâs judegement of its strategic and day-to-day needs with a focus on total equity so as to maintain investor, creditors and market confidence.

5. POST REPORTING EVENTS:

No adjusting or significant non-adjusting events have occurred between the reporting date and the date of authorisation.

6. AUTHORISATION OF FINANCIAL STATEMENTS

The financial statements for the year ended 31^st March, 2017 were approved by the Board of Directors on 30^th May, 2017

7. The management and authorities have the power to amend the Financial Statements in accordance with Section 130 and 131 of The Companies Act, 2013.

8. The IT Department have appealed against the IT Tribunalâs order, advising the IT Department for reassessment of Computation of Income of the block assessment of Income Tax for the Assessment Year 2009-10, 2010-11, 2011-12. The matter is Pending.

9. First-time adoption of Ind-AS

The transition as at April 1, 2015 to Ind As was carried out from Previous GAAP The exemptions and exceptions applied by the Company in accordance with Ind AS 101 - First-time Adoption of Indian Accounting Standards, the reconciliations of equity and total comprehensive income in accordance with Previous GAAP to Ind AS are explained below :

Exemptions availed on first time adoption of Ind-AS 101

A) Optional Exemptions availed

i) Property, Plant & Equipment and Intangibles

As permitted by Ind As 101, the Company has elected to continue with the carrying values under previous GAAP for all the items of property, plant and equipment. The same election has been made in respect of intangible assets.

ii) Investment in Subsidiary

The Company has elected to adopt the carrying value under previous GAAP as on the date of transition i.e. April 1, 2015 in its separate financial statements.

B) Manadatory Exemption

i) Estimates

Ind AS estimates as at 1^st April, 2015 are consistant with the estimates as at the same date made in conformity with the previous GAAP The Company made estimates for the following items in accordance with the Ind AS at date of transition as these were not required under previous GAAP :

- Fair valuation of financial Instruments carried at FVTPL and/or FVOCI

- Determination of the discounted value for financial instruments carried at amorised cost

ii) De-recognition of financial asets and liabilities

Ind AS 101 requires a first time adopter to apply the de-recognition provision of Ind AS 109 prospectively for transactions occurring on or after the date of transition to Ind As. Accordingly, the Company has elected to apply the de-recognition provision of Ind AS 109 prospectively from the date of trasition to Ind AS.

iii) Classification and measurement of financial assets

The Company has determined the classification of financial assets based on facts and circumstances that exists on the date of trasition. Measurement of the financial assets accounted at amortised cost has been done retrospectively except where the same is impracticable.

1 Corporate Guarantee

The Company has recognised the financial guarantee initially at its fair value and recognised the same on straight-line basis in accordance with Ind AS 18.

2 Security Deposit

Under the previous GAAP, Interest free lease security deposits were recorded at their transaction value. Under Ind AS, all financial assets are required to be recognised at fair value. Accordingly, the Company has fair valued these security deposits under Ind AS. Difference between the fair value and transaction value of the security deposit has been recognised as Prepaid.

3 Lease income

The Company has identified and reassessed its terms in the lease arrangement and any future increase in the lease receipts, otherwise than on account of inflation, has been accounted on straight line basis.

4 Borrowing cost amortised

Under Previous GAAP, thses transaction cost were charged to Profit & Loss Account as and when incurred. Under Ind AS, these cost are recognised in the profit or loss over the tenure of the borrowing as part of the interest expense by applying effective interest rate method.

5 Investment Properties

Under Ind AS, Investment properties have been seperately presented on the face of the balance sheet and measures as per the cost model prescribed in Ind AS 16 in line with Ind AS 40.

6 Deferred Tax

Deferred Tax has ben recognised on adjustments made on trasition to Ind AS.

7 Remeasurement of post employement benefits obligation

Under Ind AS, remeasurement i.e. acturial gain and losses and the return on plan assets, excluding amounts included in the net interest expense on the net defined benefit liability are recognised in other comprehensive income instead of profit or loss. Under the previous GAAP, these remeasurements were forming part of the profit or loss for the year.

Mar 31, 2016

Details of securities and other terms and conditions are as under :-I) secured redeemable Non Convertible Debentures : -

a) secured redeemable Non Convertible Debentures (Listed) : -

2,425 (Previous year 13,975) 12% Secured Redeemable Non - Convertible Debentures of Rs. 10.00 lacs each fully paid, interest payable quarterly, are issued on Private Placement basis to various banks. These Debentures are Secured by mortgage of immovable properties admeasuring to about 7,01,992 Sq. mtrs. situated at village Kasarali, District Thane and 1,47,341 Sq. mtrs. situated at Village Kopri, District Thane, owned by Privilege Power and Infrastructure Private Limited, a wholly owned subsidiary of the Company. These Secured Non - Convertible Debentures are redeemable commencing from December, 2012 from first tranche onwards at 33% each in third and fourth year and 34% at the end of fifth year.

b) secured redeemable Non Convertible Debentures (Non listed) : -

a) 2,267 (Previous year 2,267)13.25% Secured Redeemable Non - Convertible Debentures of Rs. 10.00 lacs each fully paid, interest payable monthly, are issued on Private Placement basis to Life Insurance Corporation of India. The Debentures are secured by mortgage of 2,88,940 Sq. mtrs immovable properties situated at Village Doliv and Village Khardi, District Thane and further secured by mortgage of first to nine floors except 3^rd, 4^th and 6^th floors of commercial building admeasuring 17,894.65 Sq. mtrs. situated at HDIL Towers, Survey No. 341(pt) CTS No. 608(pt), Bandra (East), Mumbai. These Secured Non - Convertible Debentures are redeemable in equal monthly installment of Rs. 100.00 lacs each commencing from 5^th October, 2013.

b) Securities of the Debentures issued to Life Insurance Corporation of India are shared on pari-passu basis for the term loan from Life Insurance Corporation of India. (Also refer note : 7(III)(b))

II) All the above debentures have been personally guaranteed by

i) Executive Chairman of the Company

ii) Vice Chairman and Managing Director of the Company

III) IDBI Trustee is the trustee to all the above Debentures issued.

I) Loans repayable on demand from Scheduled Bank :-

Punjab and Maharashtra Co-operative Bank Limited :-

Secured by pledge of fixed deposit receipts with the bank, current rate of interest 13% (Previous year 13%)

II) Loans from Scheduled Banks :-

a) Central Bank of India :-

i) Secured by registered mortgage of immovable properties admeasuring 40,468.56 Sq. mtrs. situated at CTS No. 637A, Premier Road, Village Kurla, Mumbai. Repayable in 40 monthly installments (Step up installments) of Rs. 300.00 lacs each commencing from December, 2013 to March 2014, Rs. 349.00 lacs each commencing from April, 2014 to March 2015 and Rs. 500.00 lacs each commencing from April, 2015 to March 2017. Rate of interest base rate 5 % p.a. payable monthly.

b) The Jammu and Kashmir Bank :-

i) Term loan - I - Repayable in 12 quarterly installments of Rs. 834.00 lacs each commencing from September 2014. Interest rate is base rate 3.50% p.a. payable monthly.

ii) Term Loan - II - Secured by 1^st Charge on the cash flows, receivables and project agreements/ project escrow account and project DSRA of the free sale area, and 1^st charge by way of mortgage of development right. Loan repayable in 20 quarterly installments of Rs. 750.00 lacs each commencing from September 2016. Interest rate is base rate 3.00 % p.a. payable monthly.

iii) Term Loan - III - Secured by 1^st Charge on the cash flows, receivables, all current assets of the project and project agreements/ project escrow account and project DSRA of the free sale area and 1^st charge by way of mortgage of development rights. Repayable in 16 quarterly installments of Rs. 938.00 lacs each commencing from September, 2017. Interest rate is base rate 3.00 % p.a. payable monthly.

c) Allahabad Bank :-

ii) Secured by exclusive charge on Escrow account as well as equitable mortgage of immovable properties admeasuring 54,970 Sq.mtrs at Village Maljipada, Dist. - Thane, comprising of various survey numbers. Repayable within 12 equal quarterly installments of Rs. 625.00 lacs each commencing from December 2014. Rate of interest is base rate 5% p.a. payable monthly.

iii) Secured by exclusive charge on all projects assets of the Company at Mulund and Palghar. Repayable in 4 equal quarterly installments of Rs. 425.00 lacs each commencing from March, 2017. Rate of interest is base rate 5% p.a. payable monthly.

d) syndicate Bank :-

e) Yes Bank Limited:-

Secured by exclusive charge by way of registered mortgage on the four multiplexes having built - up area of 89,173.68 sq. ft. Repayable in 180 monthly installments comprising of Rs. 41.67 lacs for first three months and Rs. 49.59 lacs per months for balance period commencing from April, 2015.

III) Term Loans from Financial Institution :-

a) IL & Fs - PMDo:-

i) Repayable in 18 quarterly installments of the staggered amount commencing from October, 2015. Rate of interest is 13.50% p.a. payable monthly.

ii) Repayable in 12 quarterly installments commencing from February, 2016. Rate of interest of the Funded interest term loan is 13.50% p.a. payable monthly.

b) Life Insurance Corporation of India :-

i) Term loan is secured by registered mortgage of immovable properties situated at Village Doliv and Village Khardi admeasuring 2,88,940 Sq. mtrs. comprising of various survey numbers and further secured by mortgage of first to nine floors except 3^rd, 4^th and 6^th floors of commercial building area admeasuring 18,194.54 Sq. mtrs. situated at HDIL Towers, Bandra (East), Mumbai. Repayable in 12 quarterly installments of Rs. 1688.15 lacs each commencing from September, 2016. Rate of interest is 13% p.a. payable monthly.

IV) All the above loans have been personally guaranteed by

i) Executive Chairman of the Company

ii) Vice Chairman and Managing Director of the Company

1. related party disclosure

^A. List of related parties with whom transactions have taken place during the current accounting year and relationship: Wholly owned subsidiary

Privilege Power and Infrastructure Private Limited 100%

HDIL Entertainment Private Limited (upto 03.07.2014) 100%

Blue Star Realtors Private Limited 100%

Guruashish Construction Private Limited 100%

Excel Arcade Private Limited 100%

Mazda Estates Private Limited 100%

other subsidiary

Ravijyot Finance and Leasing Private Limited 60%

BKC Developers Private Limited 99%

Lashkaria Construction Private Limited 69%

HC Infracity Private Limited 75%

Enterprise significantly influenced by key management personnel Privilege Airways Private Limited Joint Venture Fine Developers

Heritage Housing Development Corporation Key management personnel name Designation

Shri Darshan D. Majmudar Chief Financial Officer and Company Secretary

2. COMMITMENTS

Estimated amount of contracts remaining to be executed on capital account and not - - provided for (net of advances and deposits)

3. NATURE OF OPERATIONS: -

Housing Development and Infrastructure Limited (HDIL) is a leading real estate and infrastructure development Company.

4. Previous year figures have been reclassified to conform to this year''s classification.¹

A Building Management System (BMS) or a (more recent terminology) Building Automation System (BAS);

- Energy Efficiency System;

- Insulation;

- Multipane Windows, Window Treatment and Storm Doors, UPVC Doors / Windows etc.;

Mar 31, 2015

1. Terms/rights attached to shares :

The Company has only one class of shares i.e. equity shares of Rs. 10/- each. Shareholders are entitled to vote in accordance with their shareholding in the Company and receive dividend as and when declared by the Company.

2. 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 shareholder.

3. Details of securities and other terms and conditions are as under

I) Secured Redeemable Non-Convertible Debentures : -

a) Secured Redeemable Non-Convertible Debentures (Listed) : -

13,975 (Previous year 14,475) 12% Secured Redeemable Non-Convertible Debentures of Rs. 10.00 lacs each fully paid, interest payable quarterly are issued on Private Placement basis to various banks. These Debentures are Secured by mortgage of immovable properties admeasuring about 7,01,992 Sq. mtrs. situated at village Kasarali, District Thane and 1,47,142.47 Sq. mtrs. situated at Village Kopri, District Thane, owned by Privilege Power and Infrastructure Private Limited, a wholly owned subsidiary of the Company. These Secured Non-Convertible Debentures are redeemable commencing from December, 2012 from first tranche onwards at 33% each in third and fourth year and 34% at the end of fifth year.

b) Secured Redeemable Non-Convertible Debentures (Non-listed) : -

a) 2,267 (Previous year 2,267)13.25% Secured Redeemable Non-Convertible Debentures of Rs. 10.00 lacs each fully paid, interest payable monthly are issued on Private Placement basis to Life Insurance Corporation of India. The Debentures are secured by mortgage of 2,88,940 Sq. mtrs immovable properties situated at Village Doliv and Village Khardi, District Thane and further secured by mortgage of first to nine floors except 3rd, 4th and 6th floors of commercial building admeasuring 17,894.65 Sq. mtrs. situated at HDIL Towers, Survey No. 341(pt) CTS No. 608(pt), Bandra (East), Mumbai. These Secured Non-Convertible Debentures are redeemable in equal monthly instalment of Rs. 100.00 lacs each commencing from 5th October, 2013.

b) Securities of the Debentures issued to Life Insurance Corporation of India are shared onpari-passu basis for the term loan from Life Insurance Corporation of India. (Also refer note : 7(III)(b))

4. All the above debentures have been personally guaranteed by

i) Executive Chairman of the Company

ii) Vice Chairman and Managing Director of the Company

5. IDBI Trustee is the trustee to all the above Debentures issued.

Details of securities and other terms and conditions are as under

6. Loans repayable on demand from Scheduled Bank :- Punjab and Maharashtra Co-operative Bank Limited :-

Secured by pledge of fixed deposit receipts with the bank, current rate of interest 9% for Rs. 61.00 lacs, 10.75% for Rs. 382.00 lacs and 11% for Rs. 6,289.00 lacs. (Previous year 10% for Rs. 69.12 lacs, 10.75% for Rs. 9,712.53 lacs and 11% for Rs. 60.85 lacs).

7. Loans from Scheduled Banks :-

a) Central Bank of India :-

i) Secured by registered mortgage of immovable properties admeasuring 40,468.56 Sq. mtrs. situated at CTS No. 637A, Premier Road, Village Kurla, Mumbai. Repayable in 40 monthly installments (Step up installments) of Rs. 300.00 lacs each commencing from December, 2013 to March 2014, Rs. 349.00 lacs each commencing from April, 2014 to March 2015 and Rs. 500.00 lacs each commencing from April, 2015 to March 2017. Rate of interest base rate 5 % p.a. payable monthly.

ii) Secured by future rent receivable in favour of bank and further secured by registered mortgage of immovable property admeasuring 2,915.68 Sq. mtrs. comprising six screen Multiplex situated at a part portion of the 2nd floor, commercial building no. 2, Dreams Mall, on land bearing CTS Nos. 642, 642/1 to 642/29, CTS no.654 of village Kanjur and CTS 426 of village Bhandup, Mumbai suburban district. Repayable in 33 monthly installments of Rs. 72.60 lacs each (Principal and Interest) commencing from December, 2013. Rate of interest base rate 5% p.a. payable monthly.

b) Punjab and Sind Bank :-

Secured by exclusive charge on B and D Wings out of A, B, C and D wings, equivalent to 62,755.48 Sq. mtrs. of area of the building named as Majestic Tower, at Village Nahur, Mumbai, on the Plot of CTS 300/ A-1 and 1021/B of Village Bhandup and CTS No. 771 of Village Nahur, Mumbai. Collateral security is provided by registered mortgage on land situated at Chandansar, Thane admeasuring 1,52,955 Sq. mtrs owned by Privilege Power and Infrastructure Private Limited, a wholly owned subsidiary of the Company. Repayable in 36 monthly installments of Rs. 347.22 lacs each commencing from September 2012. Rate of Interest base rate 5% p.a. payable monthly.

c) The Jammu and Kashmir Bank :-

i) Term loan - I - Secured by cash flow arising out of the project and land situated at Vasai Virar region. Repayable in 12 quarterly installments of Rs. 834.00 lacs each commencing from September 2014. Interest rate is base rate 3.50% p.a. payable monthly.

ii) Term Loan - II - Secured by 1st Charge on the cash flows, receivables and project agreements/ project escrow account and project DSRA of the free sale area, and 1st charge by way of mortgage of development right. Loan repayable in 20 quarterly installments of ' 750.00 lacs each commencing from September 2016. Interest rate is base rate 3.00% p.a. payable monthly.

iii) Term Loan - III - Secured by 1st Charge on the cash flows, receivables, all current assets of the project and project agreements/ project escrow account and project DSRA of the free sale area and 1st charge by way of mortgage of development rights. Repayable in 16 quarterly installments of Rs. 938.00 lacs each commencing from September, 2017. Interest rate is base rate 3.00 % p.a. payable monthly.

All the above loans are secured by immovable properties admeasuring 2,91,610 Sq. mtrs. situated at Village Kopri, District Thane, comprising of various survey numbers, owned by Privilege Power and Infrastructure Private Limited, a wholly owned subsidiary of the Company.

d) Oriental Bank of Commerce

Secured by exclusive charge on A and C Wings out of A, B, C and D wings, equivalent to 62,755.48 Sq. mtrs. of area of the building named as Majestic Tower, at Nahur, Mumbai, on the Plot of CTS 300/ A-1 and 1021/B of Village Bhandup and CTS No. 771 of Village Nahur, Mumbai. Repayable in 36 monthly installments of Rs. 347.22 lacs each commencing from August 2012. Rate of Interest base rate 5.50% p.a. payable monthly.

e) Allahabad Bank :-

i) Term Loan - I - Secured by registered mortgage over the total construction area of 1,12,140.10 Sq. mtrs. which includes free sale area admeasuring approximately 67,732.72 Sq. mtrs. at CTS no. 551/27,552(pt), 552/1, 552/5 to 12 of Village Nahur, Mumbai together with the structure standing thereon and further secured by 45,342 Sq. mtrs. of immovable properties situated at Village Chandansar, Dist. Thane, comprising of various survey numbers, owned by Privilege Power and Infrastructure Private Limited, a wholly owned subsidiary of the Company. Repayable in 12 equal quarterly installments of Rs. 1,250.00 lacs each commencing from June 2014. Rate of Interest base rate 5% p.a. payable monthly.

ii) Term Loan - II - Secured by exclusive charge on Escrow account as well as equitable mortgage of immovable properties admeasuring 54,970 Sq.mtrs at Village Maljipada, Dist. - Thane, comprising of various survey numbers. Repayable within 12 equal quarterly installments of Rs. 625.00 lacs each commencing from December 2014. Rate of interest is base rate 5% p.a. payable monthly.

iii) Term Loan - III- Secured by exclusive charge on all projects assets of the Company at Mulund and Palghar. Repayable in 4 equal quarterly installments of Rs. 425.00 lacs each commencing from March 2017. Rate of interest is base rate 5% p.a. payable monthly.

f) Syndicate Bank :-

Secured by pari passu charge over escrow of Cash flows arising out of the project Whispering Tower and further secured by immovable properties admeasuring 87,620 Sq.mtrs. situated at Village Doliv, Koshimbe, Dist. Thane, comprising of various survey numbers, owned by Privilege Power and Infrastructure Private Limited, a wholly owned subsidiary of the Company. Repayable in 12 equal quarterly installments Rs. 834.00 lacs each commencing from February 2015. Rate of Interest base rate 3% p.a. payable monthly.

g) Yes Bank Limited:-

Secured by exclusive charge by way of registered mortgage on the four multiplexes having built-up area of 89,173.68 Sq. ft. Repayable in 180 equated monthly installments comprising of Rs. 41.67 lacs for first three months and Rs. 49.59 lacs per months for balance period commencing from April, 2015.

8. Term Loans from Financial Institution :-

a) IL and FS - PMDO :-

i) Repayable in 18 quarterly installments of the staggered amount commencing from October, 2015. Rate of interest is 13.50% p.a. payable monthly.

ii) Repayable in 12 quarterly installments commencing from February, 2016. Rate of interest of the Funded interest term loan is 13.50% p.a. payable monthly.

Both the loans are secured by registered mortgage of immovable properties admeasuring 1,21,850.95 Sq. mtrs. situated at Sasunavghar, comprising of various survey numbers, owned by the Company and 3,07,561.36 Sq. mtrs. situated at Village Doliv and at Village Khardi, 95,101.20 Sq. mtrs. situated at Dahisar and 12,140.58 Sq. mtrs. situated at Kasarali, comprising of various survey numbers, owned by Privilege Power and Infrastructure Private Limited, a wholly owned subsidiary of the Company.

b) Life Insurance Corporation of India:

i) Term loan is secured by registered mortgage of immovable properties situated at Village Doliv and Village Khardi admeasuring 2,88,940 Sq. mtrs. comprising of various survey numbers and further secured by mortgage of first to nine floors except 3rd, 4th and 6th floors of commercial building area admeasuring 17,894.65 Sq. mtrs. situated at HDIL Towers, Bandra (East), Mumbai. Repayable in 12 quarterly installments of Rs. 1,688.15 lacs each commencing from September, 2016. Rate of interest is 13% p.a. payable monthly.

ii) Securities of the Term loan from Life Insurance Corporation of India are shared on pari-passu basis along with the security for Non Convertible Debentures issued to Life Insurance Corporation of India. (Also refer to Note No. : 4 (I)(b)).

9. All the above loans have been personally guaranteed by

i) Executive Chairman of the Company

ii) Vice Chairman and Managing Director of the Company

10. RELATED PARTY DISCLOSURE

A. List of related parties with whom transactions have taken place during the current accounting year and relationship: Wholly owned subsidiary

Privilege Power and Infrastructure Private Limited 100%

HDIL Entertainment Private Limited (upto 03.07.2014) 100%

Blue Star Realtors Private Limited 100%

Guruashish Construction Private Limited 100%

Excel Arcade Private Limited 100%

Mazda Estates Private Limited 100%

Other subsidiary

Ravijyot Finance and Leasing Private Limited 60%

BKC Developers Private Limited 99%

Lashkaria Construction Private Limited 69%

HC Infracity Private Limited 75%

Associates

HDIL Leisures Private Limited (upto 11/03/2014)

Enterprise significantly influenced by key management personnel

Privilege Airways Private Limited Joint Venture

Fine Developers

Heritage Housing Development Corporation Key management personnel

Name Designation

Shri Darshan D. Majmudar Chief Financial Officer and Company Secretary

Particulars As at As at 31st March, 31st March, 2015 2014

11.CONTINGENT LIABILITIES NOT PROVIDED FOR

a) (i) Claims against the Company 35,839.22 50,056.00 not acknowledged as debts (represents suits filed by the parties in the Court, and disputed by the Company)

(ii) Income-tax demands disputed by the Company (net of amounts provided) 13,287.67 13,287.67

b) Guarantees provided by the bank * 656.20 646.20

Includes Bank Guarantee of Rs. 10.00 lacs (previous year Nil) to Pollution Control Board, Lucknow on behalf of the HC Infracity Private Limited a subsidiary of the Company

c) Corporate guarantee

(i) The Company has provided an undertaking to pay in the event of default on loans given by Banks to following subsidiary Companies

Guruashish Construction Private Limited 21,500.00 21,500.00

Privilege Power and Infrastructure Private Limited 75,600.00 75,600.00

(ii) The Company has facilitated a vendor financing, setting up with IDBI bank limit 5,000.00 5,000.00

upto Rs. 5,000.00 lacs. The Company has extended its corporate guarantee to the IDBI bank.

12. COMMITMENTS

Estimated amount of contracts remaining to be executed on capital account and not - 63.90

provided for (net of advances and deposits)

13. NATURE OF OPERATIONS:

Housing Development and Infrastructure Limited (HDIL) is a leading real estate and infrastructure development Company.

14. Previous year figures have been reclassified to conform to this year's classification.

Mar 31, 2014

(Rs. in Lacs)

Particulars As at As at 31st March, 2014 31st March, 2013

1. CONTINGENT LIABILITIES NOT PROVIDED FOR

a) (i) Claims against the Company not acknowledged as debts (represents 50,056.00 23,077.61 suits filed by the parties in the Court, and disputed by the Company)

(ii) The Mumbai International Airport Limited has issued notice of termination - 27,600.00 dated 6th February, 2013 on the Company of their agreement for Mumbai International Airport Slum Rehabilitation Project. The Company has challenged the said notice of termination and have initiated legal proceedings as per advice of legal counsel. Subsequent to notice of termination of the agreement, the Company may be held liable to pay liquidated damages aggregating to Rs. 27,600.00 lacs.

(iii) Income-tax demands disputed by the Company (net of amounts provided) 13,287.67 23,908.97

b) Guarantees provided by the bank 646.20 646.20

c) Corporate guarantee

(i) The Company has provided an undertaking to pay in the event of default on loans given by Banks to following subsidiary Companies Guru Ashish Construction Private Limited 21,500.00 21,500.00

Privilege Power and Infrastructure Private Limited 75,600.00 50,000.00

(ii) The Company has facilitated a vendor financing, setting up with IDBI Bank 5,000.00 5,000.00 limit upto Rs. 5,000.00 lacs. The Company has extended it''s corporate guarantee to the bank.

2. NATURE OF OPERATIONS

Housing Development and Infrastructure Limited (HDIL) is a leading real estate and infrastructure development company. Besides core activities of construction, subsidiary of HDIL is also involved in Entertainment sector.

3. Previous year figures have been reclassified to conform to this year''s classification.

Mar 31, 2013

1.1 Assets taken on lease:

a) General description of leasing arrangement

i) Leased assets: Residential and Commercial Premises ii) Future lease rentals are determined on the basis of agreed terms.

iii) At the expiry of the lease term, the Company agrees to record the new terms and condition of their agreement in relation to lease of the Premises.

b) Total operating lease expenses debited to the Statement of Profit and Loss Rs. 45.81 lacs (previous year Rs. 49.10 lacs)

2. RELATED PARTY DISCLOSURE

A. List of related parties with whom transactions have taken place during the current accounting year and relationship: Subsidiaries

1. Privilege Power and Infrastructure Private Limited

2. HDIL Entertainment Private Limited

3. Blue Star Realtors Private Limited

4. Ravijyot Finance and Leasing Private Limited

5. Excel Arcade Private Limited

6. Mazda Estates Private Limited

7. Guruashish Construction Private Limited

8. BKC Developers Private Limited

9. Lashkaria Construction Private Limited

10. HC Infracity Private Limited Associates

1. HDIL Leisures Private Limited

Enterprise significantly influenced by key management personnel

1. Privilege Airways Private Limited

2. Privilege Industries Limited

3. Privilege Health Care Services Private Limited Joint Venture

1. Fine Developers

2. Heritage Housing Development Corporation Relative of promoter of the Company

1. Shri Sunpreet Singh

3. Income tax Assessment have been completed upto Financial year 2009-2010. The tax liability of Rs. 30,287.42 lacs for the Financial year from 2005-06 to 2009-10 has been determined against the Company. Company has preferred appeals before the Income-tax Appellate Tribunal (ITAT), Mumbai. Against the said demand, the Company has paid a sum of Rs. 6,253.16 lacs under protest.

4. NATURE OF OPERATIONS:

Housing Development and Infrastructure Limited (HDIL) is a leading real estate and infrastructure development Company. Besides core activities of construction, subsidiary of HDIL is also involved in Entertainment sector.

5. Previous year figures have been reclassified to conform to this year''s classification.

Mar 31, 2012

Terms/rights attached to shares :

The Company has only one class of shares i.e. equity shares of Rs 10/- each. Shareholders are entitled to vote in accordance with their shareholding in the Company and receive dividend as and when declared by the Company.

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 preferencial amounts. The distribution will be in proportion to the number of equity shares held by the shareholder.

Details of securities provided:

i) secured redeemable Non-Convertible debentures:-

a) secured redeemable non-Convertible debentures (Listed):-

i) 11,500 (11,500) Secured Redeemable Non-Convertible Debentures of Rs 10.00 lacs each fully paid carrying interest at the rate of 12% p.a. payable quarterly are issued on Private Placement basis to various banks. Secured by Non-agricultural Land admeasuring to about 173.40 acres i.e. 7,01,992 Sq. mtrs. situated at village Kasarali, Taluka Vasai, District Thane which is owned by Privilege Power and Infrastructure Private Limited, a wholly owned subsidiary of the Company. These Secured Non-Convertible Debentures are redeemable commencing from December, 2012 onwards at 33% each in third and fourth year and 34% at the end of fifth year.

ii) 5,175 (4,250) Secured Redeemable Non-Convertible Debentures of Rs 10.00 lacs each fully paid carrying interest at the rate of 12% p.a. payable quarterly are issued on Private Placement basis to various banks. Secured by Non-agricultural Land admeasuring to about 36.36 acres situated at Village Kopri, Taluka Vasai, District Thane which is owned by Privilege Power and Infrastructure Private Limited a wholly owned subsidiary, of the Company. These Secured Non-Convertible Debentures are redeemable commencing from March, 2013 onwards at 33% each in third and fourth year and 34% at the end of fifth year.

b) secured redeemable non Convertible debentures (non listed) : -

i) a) 2,267 (4,168) Secured Redeemable Non-Convertible Debentures of Rs 10.00 lacs each fully paid carrying interest with a floor of 13.25% p.a. payable monthly are issued on Private Placement basis to Life Insurance Corporation of India. The debentures are secured by 2,88,940 Sq. mtrs Non-agricultural land situated at Village Doliv and Village Khardi, Vasai, District Thane and further secured by mortgage of first to nine floors except 3rd, 4th and 6th floors of commercial building area admeasuring 1,95,846 Sq. ft. situated at HDIL Towers, Bandra (East), Mumbai. As per the revised terms of the Debentures, these Secured Non- Convertible Debentures are redeemable in equal monthly installment of Rs 1,000 lacs commencing from 1st September, 2012.

b) Securities of the debentures issued to Life Insurance Corporation of India are shared on pari-passu basis for the term loan from Life Insurance Corporation of India.

ii) 500 (500) out of the total issue size of 2000, Secured Redeemable Non- Convertible Debentures of Rs 10.00 lacs each fully paid carrying interest @ 11.50% p.a. payable quarterly are issued on Private Placement basis to Bank of India. Secured by registered mortgage of Land admeasuring 395.24 Sq. mtrs. situated at survey no. 255 (comprising of old survey no. 255 and 256/03), mauje Maharajpura, Taluka Kadi, Mehsana, Gujarat. As per the revised terms of the Debentures these Secured Non-Convertible Debentures are redeemable in fortnightly installment of Rs 500 lacs each commencing from June, 2012.

ii) All the above debentures have been personally guaranteed by executive Chairman and Vice Chairman & Managing director of the Company.

iii) IDBI trustee is the trustee to all the above debentures issued.

Details of securities provided:

I) Loans repayable on demand from Bank:-

punjab and Maharashtra Co-operative Bank Limited:-

Secured by pledge of fixed deposit receipts with the bank, current rate of interest 10%p.a.

II) Loans from scheduled Banks:-

a) Bank of India :-

Secured by registered mortgage of free sale component to be generated on the piece and parcel of Land bearing survey No. 236A and 194 (pt) admeasuring about 18,199.08 sq. mtrs. on the property situated at Ghatkopar (East) together with buildings constructed or to be constructed thereon. The term loan repayable in 48 equal monthly installment of Rs 208.35 lacs commencing from April, 2011. The rate of interest is BPLR 0.75% p.a.

b) Central Bank of India :-

Secured by registered mortgage of property admeasuring 10 acres situated at Premier Road, Off. LBS Marg, in Greater Mumbai, Village Kurla, Taluka Kurla, Mumbai. Rate of interest BPLR 0.50% payable monthly. Repayable in 12 equal bi-monthly installment of Rs 2,500 lacs each commencing from June, 2011.

c) punjab national Bank:-

i) Secured by equitable mortgage of land admeasuring 2,50,015 sq.mtrs. at Village Shirgaon, Chandansar Road, Virar (E), Taluka Vasai, District Thane. Rate of interest is BPLR TP 1.50%. Repayment in 12 quarterly installment of Rs 1,666.67 lacs each from July, 2010.

ii) Secured by pari passu charge on registered mortgage of all the rights in Land admeasuring 15,554.55 Sq. mtrs. bearing CTS No. 866B (1) at Village Ambivali, Taluka Andheri, Mumbai Suburban District as well as FSI pertaining to the plot of land bearing CTS 866-A admeasuring 93,327.40 sq. mtrs and right to TDR of the entire layout of 1,24,436.50 sq. mtrs. Rate of interest is BPLR TP 3%. Repayment in 12 quarterly installment of Rs 2,083.33 lacs each from 18th June, 2010.

d) punjab and sind Bank:-

i) Secured by 1,52,955 sq. mtrs. of non-agricultural plot of Land situated at Village Chandansar, Virar (E) owned by Privilege Power and Infrastructure Private Limited, a wholly owned subsidiary of the Company carrying interest at BPLR 0.25% TP RP payable monthly. Repayment in 36 equal monthly installment of Rs 277.78 lacs each from August, 2009.

ii) Secured by exclusive charge on B & D Wings out of A, B, C & D wings, equivalent to 6,75,500 sq. ft. of saleable area of the building Majestic Tower, at Village Nahur, Mulund, Mumbai, on the Plot of CTS 300/ A-1 and 1021/B of Village Bhandup and CTS No. 771 of Village Nahur, Mulund, Mumbai. Rate of Interest PLR 1% payable monthly. Repayable in 36 monthly installment of Rs 347.22 lacs each after moratorium of 24 months from the date of first disbursement.

e) the Jammu and Kashmir Bank :-

Secured by mortgage of Land situated at village Kopri, Virar (East) Taluka Vasai, District Thane admeasuring 2,91,610 sq mtrs. Interest rate is Base rate 3.50%. Repayable in 12 quarterly installment of Rs 834 lacs each after moratorium of two years from first disbursement.

f) uco Bank :-

Secured by pari-passu charge on registered mortgage of all the rights in land admeasuring 15,554.55 sq. mtrs. bearing CTS No. 866B (1) at Village Ambivali, Taluka Andheri, Mumbai Suburban District as well as FSI pertaining to the plot of land bearing CTS 866-A admeasuring 93,327.40 sq.mtrs and right to TDR of the entire layout of 1,24,436.50 Sq.mtrs. Rate of interest BPLR 0.50% with monthly rests. Repayable in 16 quarterly installment of Rs 1,563 lacs each after moratorium of 12 months from the date of first disbursement.

g) oriental Bank of Commerce:-

Secured by exclusive charge on A & C Wings out of A, B, C & D wings, equivalent to 6,75,500 sq. ft. of saleable area of the building Majestic tower, at Nahur, Mulund, Mumbai, on the Plot of CTS 300/ A-1 and 1021/B of Village Bhandup and CTS No. 771 of Village Nahur, Mulund, Mumbai. Rate of Interest PLR 1% payable monthly. Repayable in 36 monthly installment of Rs 347.22 lacs each after moratorium of 24 months from the date of first disbursement.

h) allahabad Bank:-

i) Secured by registered mortgage over the total construction area of 12,07,076 sq. ft. which includes free sale area admeasuring approximately 7,29,075 sq. ft. at CTS No. 551/27, 552(pt), 552/1, 552/5 to 12 of Village Nahur, Taluka Kurla, 'T' ward, Mumbai together with the structure standing thereon and further secured by 45,202 sq. mtrs. of Non- agricultural Land situated at Village Chandansar, Taluka Vasai, Dist. Thane, comprising of various survey numbers, owned by Privilege Power and Infrastructure Private Limited, a wholly owned subsidiary of the Company. Rate of Interest base rate 5% payable monthly. Repayable in 12 equal quarterly installments of Rs 1,250.00 lacs each after moratorium of 24 months from the date of first disbursement.

ii) Secured by exclusive charge on Escrow account as well as equitable mortgage of land admeasuring 54,970 sq.mtrs at Village Maljipada, Taluka Vasai, Dist. - Thane, comprising of various survey numbers. Rate of interest is base rate 5% p.a. Repayable within 12 equal quarterly installments of Rs 625.00 lacs each after a moratorium of 24 months from first disbursement.

i) syndicate Bank :-

Secured by pari passu charge over escrow of Cash flows arising out of the project Whispering Tower and further secured by Non-agricultural Land situated at Village Doliv,Virar, admeasuring 21.65 acres owned by Privilege Power and Infrastructure Private Limited, a wholly owned subsidiary of the Company. Rate of Interest base rate 3% payable monthly. Repayable in 12 equal quarterly installments of Rs 834.00 lacs each after moratorium of 24 months from the date of first disbursement.

III) Term Loans from Financial Institution:-

a) IL & Fs:-

Secured by registered mortgage of immovable properties admeasuring 132.61 acres situated at Village Doliv, Khardi - 76 acres, Dahisar - 23.5 acres, Sasunavghar - 30.11 acres and Kasarali - 3 acres, owned by Privilege Power and Infrastructure Private Limited, a wholly owned subsidiary of the Company. Rate of interest is 12.50% payable monthly. Repayment in 20 quarterly installment of Rs 1,977.45 lacs each commencing from August, 2012.

b) Life Insurance Corporation of India:-

i) Term loan is secured by registered mortgage of property situated at Village Doliv and Village Khardi admeasuring 2,88,940 Sq. mtrs. and further secured by mortgage of first to nine floors except 3rd, 4th and 6th floors of commercial building area admeasuring 1,95,846 Sq. ft. situated at HDIL Towers, Bandra (East), Mumbai. Rate of interest is 13% p.a. payable monthly. Repayment by 19 quarterly installment of Rs 1,500.00 lacs each from November, 2010.

ii) Securities of the Term loan from Life Insurance Corporation of India are shared on pari passu basis along with the security for debentures issued to Life Insurance Corporation of India.

2. contingent liabilities not provided for

a) (i) Claims against the Company not acknowledged as debts 20,247.35 20,247.35 (represented suits filed by the parties in the High Court, Bombay and disputed by the Company)

(ii) Income-tax demands disputed by the Company (net of amounts 28,564.58 - provided).

The matters in dispute are under appeal. The demands have been paid/adjusted and will be received as refund if the matters are decided in favour of the Company.

In the opinion of the management the above claims are not sustainable.

b) Guarantees provided by the bank 3,034.20 3,024.20

c) Against demand promissory note executed as security for performance 27,500.00 27,500.00

a) Gratuity plan:-

I) The AS-15 stipulates that the rate used to discount post employment benefit obligation (both funded and non-funded) should be determined by reference to market yields at the Balance Sheet date on government bonds. The currency and terms of the government bonds should be consistent with the currency and estimated terms of the post-employment benefit obligation.

II) Estimated future salary increases take account of inflation, seniority, promotion and other retirement factors, such as supply and demand in the employment market.

B) Leave encashment liability :-

I) The AS-15 stipulates that the rate used to discount post employment benefit obligation (both funded and non-funded) should be determined by reference to market yields at the Balance Sheet date on government bonds. The currency and terms of the government bonds should be consistent with the currency and estimated terms of the post- employment benefit obligation.

II) Estimated future salary increases take account of inflation, seniority, promotion and other retirement factors, such as supply and demand in the employment market.

* The Directors remuneration includes salary paid Rs 150 lacs to Executive Chairman and Vice Chairman and Managing Director for only one month. They have voluntarily forgone the remuneration for eleven months. The non-executive Directors have also voluntary forgone their commission by 50% of the entitlement.

3. LEASE

A) Assets given on lease:

a) General description of leasing arrangement

i) Leased assets: Leasing of commercial premises.

ii) Future lease rentals are determined on the basis of agreed terms.

iii) At the expiry of the lease term, the Company agrees to record the new terms and condition of their agreement in relation to lease of the Premises.

b) Lease payment received or receivable for the year is recognised in the Statement of Profit and Loss Rs 1,359.96 lacs. (Previous year Rs 1,850.17 lacs)

B) Assets taken on lease:

a) General description of leasing arrangement

i) Leased assets: Residential premises.

ii) Future lease rentals are determined on the basis of agreed terms.

iii) At the expiry of the lease term, the Company agrees to record the new terms and condition of their agreement in relation to lease of the Premises.

b) Lease payment paid or payable for the period is recognised in the Statement of Profit and Loss Rs 30.56 lacs. (previous year Rs 29.97 lacs)

4. related party disclosure

- List of related parties with whom transactions have taken place during the current accounting year and relationship: Subsidiaries

1. Privilege Power and Infrastructure Private Limited

2. HDIL Entertainment Private Limited

3. Blue Star Realtors Private Limited

4. Ravijyot Finance & Leasing Private Limited

5. Excel Arcade Private Limited

- Mazda Estates Private Limited

7. HDIL Commercial Properties Private Limited (upto 30.06.2011)

8. Guruashish Construction Private Limited

9. BKC Developers Private Limited

10. Lashkaria Construction Private Limited

11. HC Infracity Private Limited w.e.f. 30.11.2011

Associates

1. HDIL Leisures Private Limited

Enterprise significantly influenced by key management personnel

1. Privilege Airways Private Limited

2. Privilege Industries Limited

3. Privilege Health Care Services Private Limited

5. 2,60,00,000 Share Warrants of Rs 275/- each were allotted to one of the Promoter, after obtaining the necessarry approval from share holders and relevant authorities, which entitled for conversion of each warrant into one equity share of Rs 10/- each at a premium of Rs 265/- within a period of 18 months from the date of allotment. During current year 40,00,000 warrants have been converted into equity shares of the Company. The remaining 2,20,00,000 warrants were forfeited since the right to exercise the conversion of warrants has not been exercises. The allotment money received on these warrants of Rs 15,219.96 lacs has been forfeited as per the guidelines applicable to the issue of warrants.

6. Income tax Assessment have been completed upto Assessment year 2010-11. The tax demand of Rs 34,114 lacs for the Assessment year 2005-06 to 2010-11 has been determined by the Income Tax authorities. Company has preferred appeals which are pending for final disposal.

Mar 31, 2011

1. Nature of operations: -

Housing Development and Infrastructure Limited (HDIL) is a leading real estate and infrastructure development Company. Besides core activities of construction, subsidiaries of HDIL are also involved in Entertainment and Hospitality sectors.

2. Related party disclosure

A. List of related parties with whom transactions have taken place during the current accounting year and relationship: Subsidiaries

1. Privilege Power and Infrastructure Private Limited

2. HDIL Entertainment Private Limited

3. Blue Star Realtors Private Limited

4. Ravijyot Finance & Leasing Private Limited

5. Excel Arcade Private Limited

6. Mazda Estates Private Limited

7. HDIL Commercial Properties Private Limited (Formerly: HDIL Leisure Private Limited)

8. Guruashish Construction Private Limited

9. BKC Developers Private Limited

10. Lashkaria Construction Private Limited w.e.f. 12.10.2010

Associates

HDIL Leisures Private Limited w.e.f. 12.08.2010 (Formerly: D.S. Corporation)

Enterprise significantly influenced by Key Management Personnel

1. Privilege Airways Private Limited

2. Privilege Industries Limited

3. Privilege Health Care Services Private Limited (fromerly HDIL Health Care Services Private Limited)

C. Key Management Personnel

Name Designation

Shri Rakesh Kumar Wadhawan Executive Chairman

Shri Sarang Wadhawan Managing Director

Shri K. P. Devassy Chief Financial Officer

Shri Darshan Majmudar Vice President - Company Secretary & Legal

6. The Company has adopted Accounting Standard 15 (Revised 2005) - Employee benefits ("AS-15"). Pursuant to adoption, the Company has determined the liability for gratuity and leave encashment on actuarial basis in accordance with Revised AS-15.

The Company has created Employees Group Gratuity Fund with Life Insurance Corporation of India, and obtained Group Gratuity Assurance Policy from LIC for the benefit of employees.

A) Gratuity Plan:

I) The AS-15 (Revised 2005) stipulates that the rate used to discount post employment benefit obligation (both funded and non-funded) should be determined by reference to market yields at the balance sheet date on government bonds. The currency and terms of the government bonds should be consistent with the currency and estimated terms of the post-employment benefit obligation.

II) Estimated future salary increases take account of inflation, seniority, promotion and other retirement factors, such as supply and demand in the employment market.

B) Leave encashment liability :-

I) The AS-15 (Revised 2005) stipulates that the rate used to discount post employment benefit obligation (both funded and non-funded) should be determined by reference to market yields at the balance sheet date on government bonds. The currency and terms of the government bonds should be consistent with the currency and estimated terms of the post-employment benefit obligation.

II) Estimated future salary increases take account of inflation, seniority, promotion and other retirement factors, such as supply and demand in the employment market.

7. Disclosure in respect of operating leases: A) Assets given on lease:

a) General description of leasing arrangement

i) Leased assets: Leasing of commercial premises.

ii) Future lease rentals are determined on the basis of agreed terms.

iii) At the expiry of the lease term, the Company agrees to record the new terms and condition of their agreement in relation to lease of the Premises.

b) Lease payment received or receivable for the year is recognised in the profit and loss account Rs. 1,850.17 lacs (previous year Rs. 2,064.27 lacs).

B) Assets taken on lease:

a) General description of leasing arrangement

i) Leased assets: Residential premises.

ii) Future lease rentals are determined on the basis of agreed terms.

iii) At the expiry of the lease term, the Company agrees to record the new terms and condition of their agreement in relation to lease of the Premises.

b) Lease payment paid or payable for the year is recognised in the profit and loss account Rs. 29.97 lacs (previous year Rs. Nil)

9. Contingent Liabilities not provided for

31st March, 2011 31st March, 2010 (? in lacs) (? in lacs)

a) Claims against the Company not acknowledged as debts represented suits filed by the parties in the High Court, Bombay and disputed by the Company 20,247.35 21,550.00 In the opinion of the management the above claims are not sustainable.

b) Guarantees provided by the bank 3,024.20 2,933.65

c) Against demand promissory note executed as security for performance 27,500.00 27,500.00

d) Corporate guarantee issued on behalf of wholly owned subsidiary Company - 22,000.00

11. Licensed capacity, installed capacity, etc.

With regard to Clause 3(ii) of Part II of Schedule VI to the Companies Act, 1956, the Company is of the view that in respect of its real estate operations, the Company does not fall under the category of clause 3(ii)(a) "Manufacturing Company" or clause 3(ii)(b) "Trading Company" or Clause 3(ii)(c) "Company rendering or supplying services", but falls under the category of "Other Companies" as given in Clause 3(ii)(e). As such, quantitative details of opening stock, purchases and closing stock are not required to be furnished.

12. In the opinion of the management, the value of current assets and loans and advances are not less than as stated, if realised in the ordinary course of business.

13. a) During the year, 1,30,00,000 share warrants were converted into one equity share of Rs. 10/- each at a premium of Rs. 230/- per share, out of balance warrants issued in previous year to one of the promoter of the Company.

During the year, Company has issued 2,60,00,000 convertible warrants to one of the promoter of the Company at Rs. 275/- per warrant which is to be converted into one equity share each on preferential basis. The price at which the shares/warrants issued during the year is not prejudicial to the interest of the Company.

b) During the year, Company has allotted 4,31,61,310 equity shares of Rs. 10/- each at premium of Rs. 258.18 each on private placement basis aggregating to Rs. 1,15,750 lacs to Qualified Institutional Buyers and the proceeds of the same have been utilised for the objects of the issue.

14. With effect from 1st July, 2010, the Finance Act, 2010 has inserted an Explanation, according to which the activity of construction would be deemed to be a taxable service provided by builder/promoter/ developer to the prospective buyer unless the entire payment for the property is paid by the prospective buyer or on his behalf afiter the completion of construction. In view of the writ petition filed by Maharashtra Chamber of Housing Industry, challenging the levy of service tax, the Company is awaiting the final decision in the matter. In case matter is decided against the industry, the Company will have to pay Rs. 1,292.52 lacs with interest toward estimated service tax liabilities and the same will be recovered from the customers and will be paid to the Revenue.

15. The Government of Maharashtra has introduced the composite scheme of levying MVAT @1% of the aggregate amount specified in the sale agreement or value specified for the purpose of stamp duty in respect of agreement under Bombay Stamp Act, 1958 whichever is higher, which are registered on or afiter 1st April, 2010. However, in view of stay granted by Bombay High Court in writ petition filed by Maharashtra Chamber of Housing Industry, the Company is awaiting the final decision in the matter. In case matter is decided against the industry, the Company will have to pay Rs. 417.63 lacs toward estimated MVAT liabilities and the same will be recovered from the customers and will be paid to the Revenue.

16. Loan funds: Secured loans: I) Term Loans from Banks:

a) Bank of India:

(I) Secured by registered mortgage of free sale component to be generated on the piece and parcel of Land bearing Survey No. 236A and 194 (pt) admeasuring about 18,199.08 sq.mtrs. on the property situated at Ghatkopar (East)

together with buildings constructed or to be constructed thereon. The term loan repayable in 48 equal monthly installment of Rs. 208.35 lacs commencing from April, 2011. The rate of interest is BPLR + 0.75% p.a.

(II) The other term loan secured by hypothecation of construction materials, other movable assets and receivables of Airport Slum Rehabilitation Project as well as Non-agricultural land admeasuring 92,060 sq. mtrs. at Village Sasunavghar, Taluka Vasai. Repayable in 4 quarterly installment of Rs. 5,000 lacs each afiter moratorium of two years from first disbursement. Interest rate is BPLR.

b) Central Bank of India:

Secured by registered mortgage of property admeasuring 10 acres situated at Premier Road, Off. LBS Marg, in Greater Mumbai, Village Kurla, Taluka Kurla, Mumbai. Rate of interest BPLR+ 0.50% payable monthly. Repayable in 12 equal bi-monthly installment of Rs. 2,500 lacs each commencing from June, 2011.

c) Punjab National Bank:

(I) Secured by equitable mortgage of land admeasuring 2,50,015 sq.mtrs. at Village Shirgaon, Chandansar Road, Virar (E), Taluka Vasai, District Thane. Rate of interest is BPLR+TP+1.50%. Repayment in 12 monthly installment of Rs. 1,666.67 lacs from July, 2010.

(II) Secured by pari-passu charge on registered mortgage of all the rights in Land admeasuring 15,554.55 sq. mtrs. bearing CTS No. 866B (1) at Village Ambivali, Taluka Andheri, Mumbai Suburban District as well as FSI pertaining to the plot of land bearing CTS 866-A admeasuring 93,327.40 sq.mtrs and right to TDR of the entire layout of 1,24,436.50 sq.mtrs. Rate of interest is BPLR +TP +3%. Repayment in 12 quarterly installment from 18th June, 2010.

d) Punjab and Sind Bank:

I) Secured by 1,52,955 sq. mtrs. of non-agricultural plot of Land situated at Village Chandansar, Virar (E) owned by Privilege Power and Infrastructure Private Limited, a subsidiary of the Company carrying interest at BPLR + 0.25% + TP + RP payable monthly. Repayment in 36 equal monthly instalment of Rs. 277.78 lacs from July, 2009.

II) Secured by exclusive charge on B & D Wings out of A, B, C & D wings, equivalent to 6,75,500 Sq. fit. of saleable area of the proposed building of Majestic Tower, at Village Nahur,Mulund, Mumbai at the part of the Plot of CTS 300/ A-1 and 1021/B of Village Bhandup and CTS No. 771 of Village Nahur, Mulund, Mumbai and further secured by 1,52,955 sq. mtrs. of Non-agricultural plots of land situated at Village Chandansar, Virar (E) owned by Privilege Power and Infrastructure Private Limited, a subsidiary of the Company. Rate of Interest PLR + 1% payable monthly. Repayable in 36 monthly instalment of Rs. 347.22 lacs each afiter moratorium of 24 months from the date of first disbursement.

e) United Bank of India:

Secured by registered mortgage of land admeasuring 1,07,760 sq. mtrs. situated at Kopri (Chandansar), Virar East, Dist. - Thane, owned by Privilege Power and Infrastructure Private Limited, a subsidiary of the Company. Rate of interest BPLR + 150 basis points payable monthly. Repayable in 10 quarterly instalment of Rs. 1,000 lacs each afiter moratorium of 6 months from the date of first disbursement.

f) The Jammu and Kashmir Bank:

Secured by registered mortgage of non-agricultural property of Privilege Power and Infrastructure Private Limited, a subsidiary of the Company, admeasuring 2,91,610 sq. mtrs. situated at Kopri, Virar (E). Rate of interest PLR payable monthly. Repayable in 10 equal quarterly installment of Rs. 2,000 lacs each. The first installment to commence afiter moratorium of 6 months from the date of first disbursement.

g) UCO Bank:

(I) Secured by registered mortgage of immovable property (Non-agricultural) admeasuring 1,29,600 sq. mtrs. situated at Village Doliv, Taluka Vasai, Dist. Thane. Rate of interest BPLR + 0.75% payable monthly. Repayable in 10 quarterly installment of Rs. 2,000 lacs each afiter moratorium of 6 months from the date of first disbursement.

(II) Secured by pari-passu charge on registered mortgage of all the rights in land admeasuring 15,554.55 Sq. mtrs. bearing CTS No. 866B (1) at Village Ambivali, Taluka Andheri, Mumbai Suburban District as well as FSI pertaining to the plot of land bearing CTS 866-A admeasuring 93,327.40 sq.mtrs and right to TDR of the entire layout of 1,24,436.50 sq. mtrs. Rate of interest BPLR + 0.50% with monthly rests. Repayable in 16 quarterly installment of Rs. 1,563 lacs each afiter moratorium of 12 months from the date of first disbursement.

h) Oriental Bank of Commerce:

Secured by exclusive charge on A & C Wings out of A, B, C & D wings, equivalent to 6,75,500 sq. fit. of saleable area of the proposed building of Majestic tower, at Nahur, Mulund, Mumbai at the part of the Plot of CTS 300/ A-1 and 1021/B of Village Bhandup and CTS No. 771 of Village Nahur, Mulund, Mumbai. Rate of Interest PLR + 1% payable monthly. Repayable in 36 monthly instalment of Rs. 347.22 lacs each afiter moratorium of 24 months from the date of first disbursement.

i) Allahabad Bank :- Secured by registered mortgage over the total construction area of 12,07,076 sq.fit. which includes free sale area admeasuring approximately 7,29,075 sq.fit. at CTS No. 551/27,552(pt), 552/1, 552/5 to 12 of Village Nahur, Taluka Kurla, T ward, Mumbai together with the structure standing thereon at LBS Marg, Nahur Village, Mulund, Mumbai and further secured by Non-agricultural Land situated at Village Chandansar admeasuring 45,342 sq. mtrs. owned by Privilege Power and Infrastructure Private Limited, a subsidiary of the Company. Rate of Interest base rate + 5% payable monthly. Repayable in 12 equal quarterly installments afiter moratorium of 24 months from the date of first disbursement.

II) Overdrafit from Banks:

a) Punjab and Maharashtra Co-operative Bank Limited:

Secured by pledge of Fixed deposit receipts with the bank, current rate of interest @7.5%p.a.

III) Term Loans from Financial Institution:

i) IL & FS:

Secured by registered mortgage of immovable properties admeasuring 132.61 acres situated at Village Doliv, Khardi - 76 acres, Dahisar - 23.5 acres, Maljipada - 30.11 acres and Kasarali - 3 acres, owned by Privilege Power and Infrastructure Private Limited, a subsidiary of the Company. Rate of interest is 12.50% payable monthly. Repayment in 20 quarterly installment commencing from August, 2012.

ii) Life Insurance Corporation of India:

Term loan is secured by registered mortgage of property situated at Village Doliv and Village Khardi admeasuring 2,88,940 sq. mtrs. and further secured by mortgage of first to nine floors except 3rd, 4th and 6th floors of commercial building area admeasuring 1,95,846 sq. fit. situated at HDIL Towers, Bandra (East), Mumbai. Rate of interest is 13% p.a. payable monthly. Repayment by sixteen equal quarterly installment from November, 2010.

IV) Secured Redeemable Non-Convertible Debentures (Listed):

i) 11,500 (11,500) out of the total issue size of 11,500, Secured Redeemable Non-Convertible Debentures of Rs. 10,00,000/- each fully paid carrying interest at the rate of 12% p.a. payable quarterly are issued on Private Placement basis to various banks. Secured by Non-agricultural Land admeasuring to about 173.40 acres i.e. 7,01,992 sq. mtrs. situated at village Kasarali, Taluka Vasai, District Thane which is owned by Privilege Power and Infrastructure Private Limited, a subsidiary of the Company. These Secured Non-Convertible Debentures are redeemable at 33% in third and fourth year and 34% at the end of fifith year.

ii) 4,250 (1,250) out of the total issue size of 5175, Secured Redeemable Non-Convertible Debentures of Rs. 10,00,000/- each fully paid carrying interest at the rate of 12% p.a. payable quarterly are issued on Private Placement basis to various banks. Secured by Non-agricultural Land admeasuring to about 36.36 acres situated at Village Kopri, Taluka Vasai, District Thane which is owned by Privilege Power and Infrastructure Private Limited a subsidiary, of the Company. These Secured Non-Convertible Debentures are redeemable at 33% in third and fourth year and 34% at the end of fifith year.

V) Secured Redeemable Non-Convertible Debentures (Non-listed):

i) 1,527 (2,500) Secured Redeemable Non-Convertible Debentures of Rs. 10,00,000/- each fully paid carrying interest with a floor of 11.75% p.a. payable monthly are issued on private placement basis to Life Insurance Corporation of

India. The debentures are secured by 2,88,940 sq. mtrs Non-agricultural land situated at Village Doliv and Village Khardi, Vasai, District Thane and further secured by mortgage of first to nine floors except 3rd, 4th and 6th floors of commercial building area admeasuring 1,95,846 sq. fit. situated at HDIL Towers, Bandra (East), Mumbai. These Secured Non-Convertible Debentures are redeemable in eighteen equal monthly installment of Rs. 1,388.89 lacs from October, 2010.

ii) 808 (1,000) Secured Redeemable Non-Convertible Debentures of Rs. 10,00,000/- each fully paid carrying interest with a floor of 11.95% p.a. and upper cap of 12.25% p.a. payable monthly are issued on private placement basis to Life Insurance Corporation of India. The debentures are secured by 2,88,940 sq. mtrs non agricultural land situated at Village Doliv and Village Khardi, Vasai, District Thane and further secured by mortgage of first to nine floors except 3rd, 4th and 6th floors of commercial building area admeasuring 1,95,846 sq. fit. situated at HDIL Towers, Bandra (East), Mumbai. These Secured Non Ã Convertible Debentures are redeemable in eighteen equal monthly installment of Rs. 1,666.67 lacs from October, 2010.

iii) 1,833 (3,000) Secured Redeemable Non-Convertible Debentures of Rs. 10,00,000/- each fully paid carrying interest at the rate of 11.75% p.a. payable monthly are issued on private placement basis to Life Insurance Corporation of India. The debentures are secured by 2,88,940 sq. mtrs of Non-agricultural Land situated at Village Doliv and Village Khardi, Vasai, District Thane and further secured by mortgage of first to nine floors except 3rd, 4th and 6th floors of commercial building area admeasuring 1,95,846 sq. fit. situated at HDIL Towers, Bandra (East), Mumbai. These Secured Non - Convertible Debentures are redeemable in eighteen equal monthly installment of Rs. 1,666.67 lacs from October, 2010.

iv) 500 (Nil) out of the total issue size of 2000, Secured Redeemable Non-Convertible Debentures of Rs. 10,00,000/- each fully paid carrying interest @ 11.50% p.a. payable quarterly are issued on private placement basis to Bank of India. Secured by registered mortgage of Land admeasuring 395.24 sq. mtrs. situated at Survey No. 255 (comprised old Survey No. 255 and 256/03), mauje Maharajpura, Taluka Kadi, Mehsana, Gujarat. These Secured Non-Convertible Debentures are redeemable in bullet payment afiter one year.

Note: i) All the above loans and debentures have been personally guaranteed by Executive Chairman and Managing Director of the Company.

ii) IDBI Trustee is the trustee to all the Debentures issued.

iii) Securities of the debentures issued to Life Insurance Corporation of India are shared on pari-passu basis for the term loan of Life Insurance Corporation of India.

17. Investment in Joint Ventures

M/s. Fine Developers:- (Fixed Capital Rs. Nil)

Share of profit - 90%, other partner and share of profit is Sapphire Land Developers Private Limited - 10%

20. The Income tax, Fringe benefit tax and Wealth tax assessments have been completed up to the assessment year 2007-08. For the Assessment Year 2005-06 an appeal was filed by the Company against the Assessment Order and the appeal was decided in favour of the Company but Income tax department had also preferred an appeal before ITAT, Mumbai which is pending for final disposal. The Company has already deposited the tax demanded. However block assessment for the duration of 6 years is in the process.

21. Fixed assets:

Due to fire at the registered office of the Company situated on 9th floor at HDIL Towers, extensive damage had occurred to the property and records of the Company. The office building got affected, furniture and fixtures and other movable assets aggregating to Rs. 1,811.96 lacs were damaged. The loss of Rs. 449.57 lacs net of insurance claim has been accounted for under exceptional item in profit and loss account.

22. Figures for the previous accounting year have been regrouped, rearranged, restated and reclassified wherever necessary. Accordingly, amounts and other disclosures for the previous accounting year are included as an integral part of the current accounting year financial statement and are to be read in relation to the amounts and other disclosures relating to the current accounting year.

Mar 31, 2010

1. Nature of operations:

Housing Development and Infrastructure Limited (HDIL) is a leading real estate and infrastructure development Company. Besides core activities of construction, subsidiaries of HDIL are also involved in Entertainment and Hospitality sector.

2. Related party disclosure:

A. List of related parties with whom transactions have taken place during the current accounting year and relationship:

Subsidiaries

Privilege Power and Infrastructure Private Limited

HDIL Entertainment Private Limited

Blue Star Realtors Private Limited

Ravijyot Finance & Leasing Private Limited

Excel Arcade Private Limited

Mazda Estate Private Limited

HDIL Leisure Private Limited

Guruashish Construction Private Limited

BKC Developers Private Limited

HDIL Oil and Gas Private Limited (Upto 22nd February, 2010)

3. Disclosure in respect of operating leases: Assets given on lease:

a) General description of leasing arrangement

i) Leased assets: Leasing of commercial premises. ii) Future lease rentals are determined on the basis of agreed terms.

iii) At the expiry of the lease term, the company agrees to record the new terms and condition of their agreement in relation to lease of the Premises.

b) Lease payment received or receivable for the year is recognised in the profit and loss account Rs. 2,064.27 lacs, (previous year Rs. 2,184.41 lacs)

4. Contingent Liabilities not provided for:

31-Mar-2O10 31-Mar-2009

(Rs. in lacs) (Rs. in lacs)

a) Claims against the Company not acknowledged as debts represented suits filed by the parties in the High Court, Bombay and disputed by the Company

(i) Relating to failure to handover multiplex premises NIL 3,737.79

(ii) Other matters 21,550.00 6,317.00

21,550.00 10,054.79 In the opinion of the management the above claims are not sustainable.

b) Guarantees provided by the bank 2,933.65 2,938.65

c) Against demand promissory note executed as security for performance 27,500.00 27,500.00

d) Corporate guarantee issued on b ehalf of wholly owned subsidiary Company 22,000.00 NIL

5. Licensed capacity, installed capacity, etc.

With regard to Clause 3(ii) of Part II of Schedule VI to the Companies Act, 1956, the Company is of the view that in respect of its real estate operations, the Company does not fall under the category of Clause 3(ii)(a) "Manufacturing Company" or Clause 3(ii)(b)

"Trading Company" or Clause 3(ii)(c) "Company rendering or supplying services", but falls under the category of "Other Companies" as given in Clause 3(ii)(e). As such, quantitative details of opening stock, purchases and closing stock are not required to be furnished.

6. In the opinion of the management, the value of current assets and loans and advances are not less than as stated, if realised in the ordinary course of business.

7. a) During the year Company has allotted to QIB 7,03,50,000 equity shares of Rs. 10/- each at premium of Rs. 230/- each and 2,60,00,000 share warrants of Rs. 240/- each were allotted to one of the promoter. Out of which 1,30,00,000 share warrants have been converted into equity shares of Rs. 10/- each at premium of Rs. 230/- each.

b) 1,30,00,000 outstanding share warrants are entitled for conversion into one equity share of Rs. 10/- each at a premium of Rs. 230/- per share at any time between six months to eighteen months from 2nd July, 2009 (date of allotment). The Company has received Rs. 60/- per share warrant being 25% of the exercise price.

8. Loan funds: Secured loans:

I) Term Loans from Banks:

a) Bank of India:

(I) Secured by registered mortgage of free sale component to be generated on the piece and parcel of land bearing survey No. 236A and 194 (pt) admeasuring about 18,199.08 sq. mtr. on the property situated at Ghatkopar (East) together with buildings constructed or to be constructed thereon. The term loan repayable in 48 equal monthly installment of Rs. 208.35 lacs commencing from April 2011. The rate of interest is BPLR + 0.75% p.a.

(II) The other term loan secured by hypothecation of construction materials, other movable assets and receivables of Airport Slum Rehabilitation Project as well as Non-agricultural land admeasuring 92,060 sq. mtrs. at Village Sasunavghar, Taluka Vasai. Repayable in 4 quarterly installment of Rs. 5,000 Lacs after moratorium of two years from first disbursement. Interest rate is BPLR.

b) Life Insurance Corporation of India:

Term loan is secured by registered mortgage of land admeasuring about 21,07,399 sq. ft. along with structures to be constructed thereon situated in Village Chandansar, Virar (East) Dist. Thane and land admeasuring about 22.50 acres at Kochi. Rate of interest is 13% p.a. payable monthly. Repayment by sixteen equal quarterly installment beginning from November, 2010.

c) Central Bank of India:

Secured by registered mortgage of property admeasuring 10 acres at Kurla. Rate of interest BPLR + 0.50% payable monthly. Repayable in 12 equal bi-monthly installment of Rs. 2,500 Lacs each commencing from June, 2011.

d) Punjab National Bank:

(I) Secured by equitable mortgage of land admeasuring 2,63,870 sq. mtrs. at village Dongre, Taluka Vasai, District Thane. Rate of interest is BPLR+TP+1.50%. Repayment in 12 monthly installment of Rs. 1,666.67 Lacs commencing from July, 2010.

(II) Secured by registered mortgage of all the rights of land admeasuring 15,554.54 sq.mtrs. bearing CTS No. 866B (A) at village Ambivali, Taluka Andheri, District Mumbai suburban as well as FSI pertaining to the plot of land bearing CTS 866-A admeasuring 93,327.4 sq. mtrs. Rate of interest is BPLR +TP +3%. Repayment in 12 quarterly installment commencing from 18th June, 2010.

e) Punjab and Sind Bank:

Secured by 1,52,955 sq. mtrs. of non-agricultural plots of land situated at Village Chandansar, Virar (E) owned by Privilege Power and Infrastructure Private Limited carrying interest at BPLR + 0.25% + TP + RP payable monthly. Repayment in 36 equal monthly installment of Rs. 277.78 Lacs commencing from July, 2009.

f) United Bank of India:

Secured by registered mortgage of land admeasuring 1,07,760 sq. mtrs. situated at Kopri (Chandansar), Virar East, Dist. Thane, owned by Privilege Power and Infrastructure Private Limited. Rate of interest BPLR + 150 basis points payable monthly. Repayable in 10 quarterly installment of Rs. 1,000 lacs each after moratorium of 6 months from the date of first disbursement.

g) The Jammu and Kashmir Bank:

Secured by registered mortgage of non-agricultural property of Privilege Power and Infrastructure Pvt. Ltd. admeasuring 2,31,490 sq. mtrs. situated at Kopri, Virar (E). Rate of interest PLR payable monthly. Repayable in 10 equal quarterly installments of Rs. 2,000 Lacs each. The first installment to commence after moratorium of 6 months from the date of first disbursement.

h) UCO Bank:

(I) Secured by registered mortgage of immovable property (non-agricultural) admeasuring 1,29,600 sq. mtrs. situated at Village Doliv, Taluka Vasai, Dist. Thane. Rate of interest BPLR + 0.75% payable monthly. Repayable in 10 quarterly installment of Rs. 2,000 Lacs each after moratorium of 6 months from the date of first disbursement.

(II) Secured by registered mortgage on proposed building located at CTS No. 866/B of village Ambivali, Versova, Andheri (West), Mumbai having a saleable area - Residential 10.77 Lacs sq. ft. and commercial area 12.05 Lacs sq. ft. total 22.82 Lacs sq. ft. Rate of interest BPLR + 0.50% with monthly rests. Repayable in 16 quarterly installment of Rs. 1,563 Lacs each after moratorium of 12 months from the date of first disbursement.

II) Term Loans from financial Institution: i) IL & FS:

Secured by registered mortgage of immovable properties admeasuring 132.61 acres situated at Village Doliv and Kharadi - 76 acres, Dahisar - 23.5 acres, Maljipada - 30.11 acres and Kasarali - 3 acres, owned by Privilege Power and Infrastructure Private Limited. Rate of interest is 12.50% payable monthly. Repayment in 20 quarterly installment commencing from August, 2012.

III) Secured Redeemable Non-Convertible Debentures (Listed):

i) 2500 (2500) Secured Redeemable Non-Convertible Debentures of Rs. 10,00,000/- each fully paid carrying interest rate of 11.75% p.a. payable monthly are issued on private placement basis to Life Insurance Corporation of India. The debentures are secured by 2,88,940 Sq. mtrs non-agricultural land situated at village Doliv and Village Kharadi, Vasai, District Thane. These Secured Non-Convertible Debentures are redeemable in eighteen equal monthly installment of Rs. 1,388.89 Lacs commencing from October, 2010.

ii) 3000 (3000) Secured Redeemable Non-Convertible Debentures of Rs. 10,00,000/- each fully paid carrying interest at the rate of 11.75% p.a. payable monthly are issued on private placement basis to Life Insurance Corporation of India. The debentures are secured by 2,88,940 sq. mtrs. non-agricultural land situated at village Dolive and Village Kharadi, Vasai, District Thane. These Secured Non-Convertible Debentures are redeemable in eighteen equal monthly installment of Rs. 1,666.67 Lacs commencing from October, 2010.

IV) Secured Redeemable Non-Convertible Debentures (Non-listed):

i) 1,000 (3,000) Secured Redeemable Non-Convertible Debentures of Rs. 10,00,000/- each fully paid carrying interest with a floor of 11.95% p.a. and upper cap of 12.25% p.a. payable monthly are issued on private placement basis to Life Insurance Corporation of India. Secured by registered mortgage of non-agricultural land admeasuring 3,195.82 sq. mtrs. situated at survey No. 37, mauje Ishwarpura, Taluka Radi, Mehsana and 2,88,940 sq. mtrs. non-agricultural land situated at village Dolive and Village Kharadi, Vasai, District Thane. These Secured Non-Convertible Debentures are redeemable in eighteen equal monthly installment of Rs. 1,666.67 Lacs commencing from October, 2010.

ii) 150 (150) Secured Redeemable Non-Convertible Debentures of Rs. 10,00,000/- each fully paid carrying interest @ 13.25% p.a. payable quarterly are issued on private placement basis to General Insurance Corporation. These Secured Non-Convertible Debentures are redeemable after 24 months from the date of allotment. Secured by registered first mortgage and charge on pari passu basis on commercial property located at commercial building No. 5 known as HDIL Towers, Bandra. These secured redeemable non-convertible debentures are redeemable on 22nd June, 2010.

iii) 400 (400) Secured Redeemable Non-Convertible Debentures of Rs. 10,00,000/- each fully paid carrying interest @ 13.25% p.a. payable monthly are issued on private placement basis to Punjab National Bank. Theses Secured Non-Convertible Debentures are redeemable after 24 months from the date of allotment. Secured by land admeasuring 3,477.20 sq. mtrs. situated at Village Kurla, Greater Mumbai. These secured redeemable non-convertible debentures are redeemable on 4th January, 2011.

iv) 12,750 (Nil) Secured Redeemable Non-Convertible Debentures of Rs. 10,00,000/- each fully paid carrying interest at the rate of 12% p.a. payable quarterly are issued on Private Placement basis to various banks. Secured by immovable property of 7,01,719.06 sq. mtrs. equivalent to 173.40 acres at village Kasarali, Taluka Vasai, District Thane which is owned by Privilege Power and Infrastructure Private Limited. These Secured Non-Convertible Debentures are redeemable at 33% in third and fourth year and 34% at the end of fifth year. These debentures will be listed at Bombay Stock exchange.

Note : i) All the above loans and debentures have been personally guaranteed by Executive Chairman and Managing Director of the Company.

ii) IDBI Trustee is trustee to all the Debentures issued.

iii) The debentures issued to Life Insurance Corporation of India are further secured by registered mortgage of first to nine floors except Ground, 3rd, 4th and 6th floors of commercial building known as HDIL Towers, Bandra (East), Mumbai.

9. Investment in Joint Ventures

M/s. D. S. Corporation: (Fixed Capital Rs. 1,00,000/-)

Share of profit - 45%, other partners and share of profit are (1) Prithvi Realtors & Hotels Pvt. Ltd. - 20%, (2) Sapphire Land Development Private Limited - 5%, (3) Awas Developers & Constructions Private Limited - 8%, (4) Emerald Realtors Private Limited - 8% (5) Serveall Constructions Private Limited - 8% and (6) Satyam Realtors Private Limited - 6%.

M/s. Fine Developers: (Fixed Capital Rs. Nil)

Share of profit - 90%, other partner and share of profit is Sapphire Land Developers Private Limited - 10%.

M/s. Mahul Construction Corporation:- (Fixed Capital Rs. 50,000/-)

Share of profit - 85%, other partners and share of profit (1) Shri Waryam Singh - 5%, (2) Shri Sarang Wadhawan - 5% and (3) Shri Sunpreet Singh - 5%

10. On 10th September, 2009 search and seizure action has been conducted by Income Tax department in the business premises of the Company as well as residential premises of the two directors. As a consequence thereof the Company has made a disclosure of Rs. 350 Crores under Section 132 (4) of Income Tax Act, 1961 as income of current financial year 2009-10. The said income as well as the probable tax liabilities are duly accounted for in accordance with the provisions of Income Tax Act, 1961.

11. Figures for the previous accounting year have been regrouped, rearranged, restated and reclassified wherever necessary. Accordingly, amounts and other disclosures for the previous accounting year are included as an integral part of the current accounting year financial statement and are to be read in relation to the amounts and other disclosures relating to the current accounting year.

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