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Notes to Accounts of Hubtown Ltd.

Mar 31, 2018

Note 1. Statement of Significant Accounting Policies.

1.1 Company Overview

Hubtown Limited is a listed public limited company domiciled in India, incorporated under the Companies Act, 1956. The Company is engaged in real estate business of construction and development of Residential and Commercial Premises, Build Operate Transfer (BOT) Projects, etc. through both - on its own and through its subsidiaries / joint ventures / associate companies.

1.2 The financial statements are approved for issue by the Company’s Board of Directors on 29th May, 2018.

Footnotes:

a. Diminution of Rs. NIL (March 31, 2017: ‘ 0.90 lakhs) has been made for Investments.

b. The Company had sold its entire holding in the share capital of Giraffe Developers Private Limited, vide sale deed dated 15th February, 2017. The sale transacation has been cancelled in current year due to non fulfillment of certain conditions of sale.

c. Shreenath Realtors (a partnership firm) was into development and exploitation of areas at Nirmal Nagar, Sion, Mumbai. Since the approval from the Government has not been received till date nor there is any scope of it being approved in the near future, operation cost has been mounting year on year in the said firm. In view of the facts, the Company has written off the capital amount given for project development amounting to Rs. 775.00 lakhs. However, the Firm has not been dissolved as on date. Refer footnote (a) to Note 30.

d. Primeria (a joint venture), where the Company has invested capital of Rs. 1.60 lakhs has been written off. However, the Firm has not been dissolved as on date.

e. Details of investments made in the capital of partnership firms and joint ventures :

f. The Company has investments in certain subsidiaries, jointly controlled entities and associates aggregating Rs. 98217.00 lakhs (March 31, 2017: Rs. 98217.00 lakhs) and loans and advances outstanding aggregating Rs. 22826.00 lakhs (March 31, 2017: Rs. 27696.00 lakhs) as at March 31, 2018. While such entities have incurred losses and have negative net worth as at the year end, the underlying projects in such entities are at various stages of real estate development and are expected to achieve adequate profitability on substantial completion and/ or have current market values of certain properties which are in excess of the carrying values. The Company considers its investments in such entities as long term and strategic in nature. Accordingly, no provision is considered necessary towards diminution in the value of the Company’s investments in such entities or in respect of loans and advances advanced to such entities, which are considered good and fully recoverable.

Footnotes:

a. The amount funded by the Company to its subsidiaries, joint ventures and associate entities initially were in infant stage. These entities are on the verge of launching their own projects and are also in the process of obtaining finance facilities / investors, etc. on their own strength. In view of the above developments, project advances to these entities are considered as repayable on demand.

b. Other receivables other than trade receivables include Rs. NIL(as on 31st March,2017 Rs. 5,004.79 lakhs) receivable towards sale of shares by the Company of one of its erstwhile associate.

c. The Company has not charged interest on advances given by it to certain group entities developing real estate projects, in which the Company has commercial and business interests.

b) Terms / rights attached to equity shares

The Company has a single class of equity shares having a par value of ‘10 per share. Each shareholder of equity share is entitled to one vote per share. The Company declares and pays dividend in Indian rupees.

In the event of liquidation of the Company, the holder of equity shares will be entitled to receive the remaining assets of the Company in proportion to the number of equity shares held by each shareholder, after settlement of all preferential obligations.

Footnote:

The Company, owing to liquidity issues, has not invested / deposited as at 31st March, 2018: Rs. 310.46 lakhs (as at 31st March, 2017: Rs. 630.95 lakhs) in the manner prescribed under Rule 18(7)(c) of the Companies (Share Capital and Debentures) Rules, 2014 notified by the Ministry of Corporate Affairs.

Footnotes :

a. Working capital loan from bank carries interest rate of 17.30% (31st March, 2017: 17.60%). The loan is secured against mortgage of premises located at MIDC, Andheri (East), Mumbai and further secured by personal guarantee of one or more promoters. The said account of the Company has been attached by the Maharashtra State CID in connection with an ongoing case with regard to a commercial transaction with an erstwhile associate company. [Refer Note 36 (ii) (c)]

b. Secured loan from financial institution carries average interest rate of 16.50%. This loan is secured against pledge of equity shares in the Company held by the promoters alongwith personal guarantee of promoters and mortgage of premises in the project located at Andheri (East).

c. Secured loans from companies carry interest rate of 21% and are repayable on demand. However, loan from a company amounting to Rs. 3040.26 lakhs (As at 31st March, 2017: Rs. 3726.85 lakhs) is interest free.These Loans are secured against mortgage of unsold areas of the commercial projects at Andheri (East) and Jogeshwari (East) and secured against pledge of equity shares in the Company held by the promoters.

d. Unsecured loans from companies and others carry interest rates within a range of 15% to 36% and are repayable on demand.

Footnotes:

a. As per Fourth consent terms dated 2nd February, 2018, outstanding amount was repayable with interest @ 20% p. a., of which last installment was to be redeemed on or before 31st March 2018. The said debentures are secured by first and exclusive charge on the premises located at MIDC, Andheri (East), project located at Andheri (West) Mumbai and secured against pledge of equity shares in the Company held by the promoters of Hubtown Limited. The said Debentures have matured and unpaid amount of Rs. 2199.01 Lakhs has been disclosed under other current financial liabilities. However, the Company is in the process of renegotiating the terms of the Non - Convertible Debentures with the Debenture holders.

c. Other payable includes Rs. 17,779.65 lakhs (As at 31st March, 2017: Rs. 4,184.79 lakhs) due to related parties. Further, attention is invited to Note 33.

d. Retention Money liability to the contractors which are not due for payment as at 31st March, 2018 have been shown under the head “Other Financial Liabilities” as per Ind AS-32. As per the management, the retention liability is in the nature of holding the amount as guarantee towards performance and does not relate to credit period given by the contractor. Further in the opinion of the management, there has not been any authoritative clarification / interpretation with regard to measurement of fair value in respect of above item and hence retention liability has not been discounted as on 31st March, 2018.

Footnote:

a. The average credit period on purchases is 6 to 9 months.

Details of dues to Micro, Small and Medium Enterprises as defined under Micro Small Medium Enterprises Development Act, 2006 :

a. Trade payables include Rs. NIL (As at 31st March, 2017: ‘Nil) due to micro, small and medium enterprises registered under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED).

b. No interest was paid / payable to micro and small enterprises during the year.

c. The above information has been determined to the extent such parties could be identified on the basis of the information available with the Company regarding the status of parties under the MSMED Act and has been relied upon by the auditors.

Footnotes:

a. Sale of Properties/Rights includes Rs. 2932.11 lakhs (For 2016-17: Rs. 22,983.84 lakhs) from related parties. Further attention is invited to Note 33.

b. Sale of Properties is net Services of Rs. NIL (For 2016-17: Rs. 3,000.00 lakhs) on account of reversal of revenue recognised in earlier years.

c. The Company has not recognised finance income amounting to Rs. 18,508.44 lakhs from Deep Discount Bonds held in one of its joint venture entities as the terms of the said Bonds relating to tenure of the Bonds and redemption premium are under negotiation with the Issuer.

Footnotes:

a. (i) Income on account of OTC included waiver of outstanding loan and interest thereon from Bank of Maharashtra and Dena Bank amounting to Rs. 11,868.43 lakhs and Rs. 57.67 lakhs respectively.

(ii) UCO Bank has transferred the loan amount including interest thereon amounting to Rs. 18,287.94 lakhs as on 31.03.2017 to a third party “Invent Asset Securitisation & Reconstruction Private Limited”. vide letter dated 11.04.2017. The said loan has been settled at Rs. 15,500.00 lakhs vide letter dated 27.11.2017 from Invent Asset Securitisation & Reconstruction Private Limited. The waiver for the said loan amounted to Rs. 2,787.94 lakhs. The loan carries 0% interest rate and is repayable within 5 years. The loan is secured against properties located at Mulund, Thane and Andheri (East) and also by first charge on lease rent receivable from said Premises.

Footnote:

Cost incurred till date on Project Jewell has been written off amounting to Rs. 5642.41 lakhs during the F.Y. 2016-17. Change in town planning policies has affected the envisaged profitability of the Project and continuing with the same would have resulted in losses to the Company. Hence the losses have been curtailed by writing off the costs incurred in Project Jewell earlier carried under incomplete projects.

Footnotes:

a. The Company has not provided for interest amounting to Rs. 4,162.00 lakhs on certain inter-corporate deposits as the Company is in the process of re-negotiating the terms / waiver of interest by respective lenders.

b. In line with IND AS-23 ‘Borrowing Costs’ issued by The Institute of Chartered Accountants of India, borrowing costs of Rs. 7405.45 lakhs (F.Y. 2016-17: Rs. 9,796.50 lakhs) have been capitalised to inventory.

Footnotes:

a. The Company has given advances to certain companies towards potential interest in their projects. Due to cancellation of approvals, continuing losses and no movement in the project status, in the opinion of the management such advances/ receivables aggregating Rs. 7,086.81 being non-recoverable were written off during the year.

b. CSR amount required to be spent as per Section 135 of the Companies Act, 2013 read with Schedule VII thereto by the Company during the year was Rs. 34 Lakhs (Previous Year Rs. 39 lakhs), the actual amount spent during the year was Rs. 385.25 lakhs (Previous year Rs. NIL) for purpose other than construction/acquisition of assets.

c. Auditors’ Remuneration (included in Legal and professional fees and Other Expenses ):

Note ‘2’

Disclosure relating to employee benefits as per Ind AS 19 ‘Employee Benefits’

A. Defined Contribution Plans

An amount of Rs. 52.94 lakhs (F.Y. 2016-17: Rs. 74.19 lakhs) under defined benefit plan is recognised as expense in the Statement of Profit and Loss.

B. Defined benefit obligation - Gratuity

The Prinicipal assumptions used for the purpose of the actuarial valuations were as follows:

As of 31st March, 2018, every percentage point increase in discount rate will affect our gratuity benefit obligation Rs. 328.21 lakhs.

As of 31st March, 2018, every percentage point decrease in discount rate will affect our gratuity benefit obligation Rs. 410.46 lakhs.

As of 31st March, 2018, every percentage point increase in salary escalation rate will affect our gratuity benefit obligation Rs. 410.75 lakhs.

As of 31st March, 2018, every percentage point decrease in salary escalation rate will affect our gratuity benefit obligation Rs. 327.43 lakhs.

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

Projected service cost as on 31st March 2019 is Rs. 47.49 lakhs.

Narrations:

1 Analysis of Defined Benefit Obligation

The number of members under the scheme have decreased by 1.70%. Similarly the total salary increased by 0.25% during the accounting period. The resultant liability at the end of the period over the beginning of the period has increased by 6.58%.

2 Expected rate of return basis:

Since the scheme funds are invested with LIC of India EROA is based on rate of return declared by fund managers.

3 Description of Plan Assets and Reimbursement Conditions

100% of the Plan Asset is entrusted to LIC of India under their Group Gratuity Scheme. The reimbursement is subject to Insurer’s Surrender Policy.

IV. Key Management Personnel

1 Mr. Hemant M. Shah, Executive Chairman

2 Mr. Vyomesh M. Shah, Managing Director

V. Relatives of Key Management Personnel

1 Mrs. Lata M. Shah, Mother of Executive Chairman and Managing Director

2 Mrs. Kunjal H. Shah, Wife of Executive Chairman

3 Mrs. Falguni V. Shah, Wife of Managing Director

4 Mr. Rushank V. Shah, Son of Managing Director

5 Mr. Khilen V. Shah, Son of Managing Director

6 Mr. Kushal H. Shah, Son of Executive Chairman

7 Mrs. Nutan Dhanki, Sister of Executive Chairman and Managing Director

8 Mrs. Hemanti Parekh, Sister of Executive Chairman and Managing Director

9 Hemant M. Shah HUF- Karta Executive Chairman

10 Mrs. Pratiti K. Shah, Daughter in Law of Managing Director

11 Mrs. Meha R. Shah, Daughter in Law of Managing Director

12 Vyomesh M. Shah HUF- Karta Managing Director

13 Mahipatray V. Shah HUF- Karta Executive Chairman

14 Mahipatray V. Shah Discretionary Trust- Trustees Executive Chairman and Managing Director

15 Estate of Mahipatray V Shah - Beneficiaries Executive Chairman and Managing Director

VI. Enterprises where Key Management Personnel or their relatives exercise significant influence

(Where transactions have taken place)

1 Adhivitiya Properties Limited

2 Helik Advisory Limited

3 Sheshan Housing And Area Development Engineers Limited

4 Vishal Nirman (India) Limited

5 Buildbyte. Com (India) Private Limited

6 Celeste Joint Venture

7 Citygold Management Services Private Limited

8 Distinctive Realty Private Limited

9 Fern Infrastructure Private Limited

10 Fourjone Realtors Private Limited

11 Heeler Hospitality Private Limited

12 Ichha Constructions Private Limited

13 Lista City Private Limited

14 Merrygold Buildcon Private Limited

15 Starzone Developers Private Limited

16 Sunmist Builders Private Limited

17 Sunstone Developers Joint Venture

18 Superaction Realty Private Limited

19 Trans Gulf MEP Engineers Private Limited

Footnotes:

a. Previous year figures are given in brackets.

b. Related party relationships are as identified by the Company and relied upon by the auditors.

c. $ Enterprises where Key Management personnel or their relatives exercise significant influence.

Footnotes:

a. Interest free advances

b. Previous year figures are given in brackets.

Note ‘3’

In the opinion of the Board of Directors of the Company, all items of Current Assets, Current Liabilities and Loans and Advances continue to have a realizable value of at least the amounts at which they are stated in the Balance Sheet.

Footnotes:

a. Interest / penalty that may accrue on original demands are not ascertainable, at present. The Company has taken necessary steps to protect its position with respect to the above referred claims, which in its opinion, based on professional / legal advice are not sustainable.

b. Contingent liabilities include corporate guarantees issued by the Company and are relied upon by the Auditors.

c. The management is of the view that it was necessary to provide the corporate guarantees to further the business interest of the Company in the entities on whose behalf such guarantees have been provided and the management is of the view that there would be no sustainable claims on the Company in respect of these corporate guarantees.

The rate of interest, processing fees, any other charges levied by the lenders on the entities availing loans are based on internal guidelines of the lenders depending on the merits of the underlying projects and their estimated cash flows. Majority of the corporate guarantees issued by the Company are basically to provide comfort by the Company as a shareholder of the Borrower entity to the Lenders. These corporate guarantees, in any case, do not result in any additional benefits to the borrowers. Accordingly, the financial liability on account of financial guarantee contracts have not been fair valued as these are expected to be immaterial.

Note ‘4’

Financial Risk Management Objectives and Policies

The Company’s activities expose it to a variety of financial risks: market risk, credit risk and liquidity risk. The Company’s focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its financial performance.

1) Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument which fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as equity price risk. Major financial instruments affected by market risk include loans and borrowings.

a) Interest rate risk

Majority of the long-term borrowings of the Company bear fixed interest rate, thus interest rate risk is limited for the Company.

b) Foreign currency risk

The Company is engaged in real estate business and only imports certain material against Letter of Credit for which hedging instruments are not required.

c) Equity price risk

The Company’s equity securities are not majorly susceptible to market price risk. However, the Company’s Board of Directors reviews and approves all equity investment decisions after taking due diligence which may affect the market related risk.

2) Credit Risk

Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. The maximum exposure of the financial assets are contributed by trade receivables, unbilled revenue, cash and cash equivalents and receivables from group companies.

a) Receivables resulting from sale of properties: Customer credit risk is managed by requiring customers to pay advances before transfer of ownership, thereby, substantially eliminating the Company’s credit risk in this respect.

b) Receivables resulting from other than sale of properties: Credit risk related to such receivables is managed as per Company’s established policy, procedures and control. Outstanding customer receivables are regularly monitored. The impairment analysis is performed at each reporting date on an individual basis for major receivables. The Company does not hold collateral as security. The company’s credit period genarally ranges from 30 to 90 days.

c) Credit risk on cash and cash equivalents is limited as the Company generally invests deposits with banks which have high credit ratings.

3) Liquidity risk

The Company’s treasury department is responsible for liquidity, funding as well as settlement management. In addition, processes and policies related to such risks are overseen by senior management. Management monitors the Company’s net liquidity position through rolling forecasts on the basis of expected cash flows.

Note ‘5’ Disclosure of derivatives

a. No derivative instrument was outstanding at the end of the year.

b. Uncovered risks in foreign currency transactions disclosed as at:

Note ‘6’

Capital Management

For the purpose of the Company’s capital management, capital includes issued equity capital and all other equity reserves attributable to the equity holders of the Company. The primary objective of the Company’s management is to maximise shareholders value.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may issue new shares. Consistent with others in the industry, the Company monitors its capital using the gearing ratio which is total net debt (borrowings offset by cash and cash equivalents) divided by total capital of the Company.

Gearing Ratio

In order to achieve this overall objective, the Company’s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the borrowings that define the capital structure requirements. Breaches in meeting the financial covenants would permit the lenders to immediately call loans and borrowings.

The gearing ratio at the reporting period was as follows:

# Includes amount received from customer against projects on which revenue is not recognised till date.

Note ‘7’

Loans and advances, other receivables, debtors and creditors are subject to confirmations and are considered payable / realisable, as the case may be.


Mar 31, 2016

NOTE ''1''

A major fire took place at the registered office of the Company on December 23, 2011, causing extensive damage and destruction of records and assets of the Company, including financial accounting records. The management is of the opinion that no significant adjustments would be necessary to the position reported in the financial statements, upon reconstruction of balance documents and records.

NOTE ''2''

Loans and advances, other receivables, debtors and creditors are subject to confirmations and are considered payable / realizable, as the case may be.

NOTE ''3''

Previous year figures have been regrouped / reclassified wherever necessary, to make them comparable with current year figures in the financial statements.


Mar 31, 2015

NOTE '1' : CORPORATE INFORMATION

Hubtown Limited is a listed public limited company domiciled in India, incorporated under the Companies Act, 1956. The Company is engaged in real estate business of construction and development of Residential and Commercial Premises, Build Operate Transfer (BOT) Projects, etc. through both - on its own and through its subsidiaries / joint ventures / associate companies.

c. terms / rights attached to equity Shares :

The Company has a single class of equity shares having a par value of Rs. 10/- per share. Each holder of equity share is entitled to one vote per share. The Company declares and pays dividend in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of shareholders in annual general meeting.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive the remaining assets of the Company in proportion to the number of equity shares held by each shareholder, after settlement of all preferential obligations.

Footnotes:

a. During the previous year, the Company transferred an amount of Rs. 3,000.00 Lacs to debenture redemption reserve in accordance with the provisions of Section 117C of the Companies Act, 1956.

b. In the Twenty Sixth Annual General Meeting of the Company held on 25th September, 2014, the motion for declaration of dividend on equity shares for the year ended March 31, 2014 was lost. Consequently, no dividend was paid to the shareholders and hence the proposed equity dividend and tax thereon has been reversed during the year.

c. The Company, owing to liquidity crunch, has not invested / deposited Rs. 1,382.46 lacs (P.Y. Rs. 2,686.83 lacs) in the manner prescribed under Rule 18(7) (c) of the Companies (Share Capital and Debentures) Rules, 2014 notified by the Ministry of Corporate Afairs.

c. The Company has investments in certain subsidiaries, jointly controlled entities and associates aggregating C.Y. Rs. 2,821.92 Lacs (P.Y. Rs. 860.20 lacs) and loans and advances outstanding aggregating C.Y. Rs. 102,057.21 lacs (P.Y. Rs. 104,981.29 lacs) as at March 31, 2015. While such entities have incurred losses and have negative net worth as at the year end, the underlying projects in such entities are at various stages of real estate development and are expected to achieve adequate profitability on substantial completion and/ or have current market values of certain properties in excess of the carrying values. The Company considers its investments in such entities as long term and strategic in nature. Accordingly, no provision is considered necessary towards diminution in the value of the Company's investments in such entities or in respect of loans and advances advanced to such entities, which are considered good and fully recoverable.

note '2'

CONTINGENT LIABILITIES (NOT PROVIDED FOR) :

(A) Claims against the Company not acknowledged as debts on account of :

1) Income tax and MVAT matters under appeal 654.41 590.51

2) TDS liability on account of short deduction, short payment and interest thereon as per TRACES 411.42 __

3) Demand notice issued by Brihanmumbai Municipal Corporation for land construction __ 617.20 charges (property tax)

4) Development permission from forest department __ 156.22

5) Towards pending legal cases 68,909.50 58,542.67

(B) On account of corporate guarantees issued by the Company to bankers and others on behalf of other companies and joint ventures for facilities availed by them (amount outstanding there against.) (Refer footnote b) 47,280.82 64,273.76

Footnotes:

a. Interest / penalty that may accrue on original demands are not ascertainable, at present. The Company has taken necessary steps to protect its position with respect to the above referred claims, which in its opinion, based on professional / legal advice are not sustainable.

b. Contingent liabilities including corporate guarantees issued are identified by the Company and relied upon by the auditors.

note '3'

RELATED PARTIES DISCLOSURES

a. names of related parties and description of relationship

i. Subsidiaries

1 ABP Realty Advisors Private Limited

2 Ackruti Safeguard Systems Private Limited

3 Adhivitiya Properties Limited (up to August 31, 2014)

4 Arnav Gruh Limited (up to February 28, 2015)

5 Citywood Builders Private Limited (from November 29, 2014)

6 Citygold Education Research Limited

7 Citygold Farming Private Limited

8 Devkrupa Build Tech Limited

9 Diviniti Projects Private Limited

10 Gujarat Akruti - TCG Biotech Limited

11 Halitious Developer Limited

12 Headland Farming Private Limited

13 Heddle Knowledge Private Limited

14 Heeler Hospitality Private Limited (up to March 31, 2015)

15 Heet Builders Private Limited

16 India Development And Construction Venture Capital Private Limited

17 Joynest Premises Private Limited

18 Merrygold Buildcon Private Limited (up to March 31, 2015)

19 Sheshan Housing and Area Development Engineers Limited

20 Upvan Lake Resorts Private Limited

21 Urvi Build Tech Limited

22 Vama Housing Limited

23 Vega Developers Private Limited

24 Vishal Nirman (India) Limited (up to March 31, 2015)

25 Vishal Techno Commerce Limited

26 Yantti Buildcon Private Limited

ii. associates

1 Citywood Builders Private Limited (up to November 29, 2014)

2 Comral Realty Private Limited

3 Holiac Realty Private Limited (up to April 01, 2014)

4 Harbinger Developers Private Limited (up to November 29, 2014)

5 Pristine Developers Private Limited

6 Shubhsiddhi Builders Private Limited (from November 29, 2014)

7 Vinca Developer Private Limited

8 Yellowcity Builders Private Limited

9 Whitebud Developers Limited

iii. Jointly controlled entities

1 Hoary Realty Limited

2 Hubtown Bus Terminal (Adajan) Private Limited

3 Hubtown Bus Terminal (Ahmedabad) Private Limited

4 Hubtown Bus Terminal (Mehsana) Private Limited

5 Hubtown Bus Terminal (Surat) Private Limited

6 Hubtown Bus Terminal (Vadodara) Private Limited

7 Joyous Housing Limited (formerly known as Joyous Housing Private Limited)

8 Rukshmani Properties Private Limited (from July 01, 2014)

9 Rare Townships Private Limited

10 Sunstream City Private Limited

11 Akruti GM JV

12 Akruti Jay Chandan JV

13 Akruti Jay Developers

14 Akruti Kailash Constructions

15 Akruti Realty Forefront Combine

16 Akruti Steelfab Corporation

17 Akruti SMC JV (upto February 28, 2015)

18 Gandhi Adhivitiya Combine (up to August 31, 2014)

19 Gulati Estate Joint Venture (dissolved as on March 31, 2015)

20 Hiranandani Akruti JV

21 Shreenath Realtors

22 Sole Builders (upto November 30, 2014)

23 Rising Glory Developers (from January 01, 2015)

24 New Township Fintrade JV (from June 01, 2014)

25 Town Planning Fintrade JV (from June 01, 2014)

26 Hinterland Fintrade JV (from June 01, 2014)

iV. Key management personnel

1 Mr. Hemant M. Shah, Executive Chairman

2 Mr. Vyomesh M. Shah, Managing Director

V. relatives of key management personnel

1 Mrs. Lata M. Shah, Mother of Executive Chairman and Managing Director

2 Mrs. Kunjal H. Shah, Wife of Executive Chairman

3 Mrs. Falguni V. Shah, Wife of Managing Director

4 Mr. Rushank V. Shah, Son of Managing Director

5 Mr. Khilen V. Shah, Son of Managing Director

6 Mr. Kushal H. Shah, Son of Executive Chairman

7 Mrs. Nutan Dhanki, Sister of Executive Chairman and Managing Director

8 Mrs. Hemanti Parekh, Sister of Executive Chairman and Managing Director

9 Hemant M. Shah HUF - Karta Executive Chairman

10 Vyomesh M. Shah HUF - Karta Managing Director

11 Mahipatray V. Shah HUF - Karta Executive Chairman

12 Mahipatray V. Shah Discretionary Trust - Trustees Executive Chairman and Managing Director

13 Estate of Mahipatray V Shah - Beneficiaries Executive Chairman and Managing Director

Vi. enterprises where key managerial personnel or their relatives exercise significant influence

(Where transactions have taken place)

1 Adhivitiya Properties Limited (from August 31, 2014)

2 Buildbyte. Com. (India) Private Limited

3 Citygold Management Services Private Limited

4 Fourjone Realtors Private Limited

5 Helik Advisory Limited

6 Heeler Hospitality Private Limited (from March 31, 2015)

7 Ichha Constructions Private Limited

8 Joya Habitat Private Limited

9 Lista City Private Limited

10 Merrygold Buildcon Private Limited (from March 31, 2015)

11 Starzone Developers Private Limited

12 Sunmist Builders Private Limited

13 Superaction Realty Private Limited

14 Trans Gulf MEP Engineers Private Limited

15 Vishal Nirman (India) Limited (from March 31, 2015)

a. Previous year figures are given in brackets.

b. Related party relationships are identified by the Company and relied upon by the auditors.

c. $ Enterprises where Key Managerial Personnel or their relatives exercise significant influence.

note '4'

A major fire which took place at the registered office of the Company on December 23, 2011, causing extensive damage and destruction of records and assets of the Company, including financial accounting records. The management is of the opinion that no significant adjustments would be necessary to the position reported in the financial statements, upon reconstruction of balance documents and records.

note '5'

Loans and advances, other receivables, debtors and creditors are subject to confirmations and are considered payable / realisable, as the case may be.

note '6'

Previous year figures have been regrouped / reclassified wherever necessary, to make them comparable with current year figures in the Financial Statements.


Mar 31, 2014

Note ''1'' : Corporate information

Hubtown Limited is a listed public limited Company domiciled in India, incorporated under The Companies Act, 1956. The Company is engaged in real estate business of construction and development of Residential and Commercial Premises, SEZs, Biotech Park, Build Operate Transfer (BOT) Projects, etc. through both - on its own and through its subsidiaries / joint ventures / associate companies.

31 March, 2014 31 March, 2013 ( Rs. in lacs) ( Rs. in lacs)

Note ''2''

Contingent Liabilities (Not Provided For) :

(A) Claims against the Company not acknowledged as debts on account of :

1) Income tax and MVAT matters under appeal. 590.51 12.52

2) Demand notice issued by Brihanmumbai Municipal Corporation for land construction 617.20 548.19 charges (property tax).

3) Development permission from forest department. 156.22 156.22

4) Others 58,542.67 51,000.92

(B) On account of corporate guarantees issued by the Company to bankers and others on behalf 64,273.76 31,018.45 of other companies and joint ventures for facilities availed by them (amount outstanding thereagainst) (Refer footnote).

Further interest / penalty that may accrue on original demands are not ascertainable at present. The Company has taken necessary steps to protect its position with respect to the above referred claims, which in its opinion, based on professional / legal advice are not sustainable.

Footnote:

Contingent liabilities including corporate guarantees are identified by the Company and relied upon by the auditors.

Note ''3''

Related Parties Disclosures

a. Names of related parties and description of relationship

i. Subsidiaries

1 ABP Realty Advisors Private Limited

2 Ackruti Safeguard Systems Private Limited

3 Adhivitiya Properties Limited

4 Arnav Gruh Limited

5 Citygold Education Research Limited

6 Citygold Farming Private Limited

7 Devkrupa Build Tech Limited

8 Diviniti Projects Private Limited

9 Gujarat Akruti - TCG Biotech Limited

10 Halitious Developer Limited

11 Headland Farming Private Limited

12 Heddle Knowledge Private Limited

13 Heeler Hospitality Private Limited

14 Heet Builders Private Limited

15 India Development And Construction Venture Capital Private Limited

16 Joynest Premises Private Limited

17 Merrygold Buildcon Private Limited

18 Sheshan Housing & Area Development Engineers Limited

19 Upvan Lake Resorts Private Limited

20 Urvi Build Tech Limited

21 Vama Housing Limited

22 Vega Developers Private Limited

23 Vishal Nirman (India) Limited

24 Vishal Techno Commerce Limited

25 Yantti Buildcon Private Limited

ii. Associates

1 Citywood Builders Private Limited

2 Comral Realty Private Limited

3 Forefront Realty Private Limited (upto June 30, 2013)

4 Gallant Infotech Private Limited

5 Glamorous Properties Private Limited (upto December 31, 2013)

6 Harbinger Developers Private Limited

7 Holiac Realty Private Limited

8 Pristine Developers Private Limited

9 Whitebud Developers Limited

10 Vinca Developer Private Limited

11 Yellowcity Builders Private Limited

iii. Jointly controlled entities

1 Hoary Realty Limited

2 Hubtown Bus Terminal (Adajan) Private Limited

3 Hubtown Bus Terminal (Ahmedabad) Private Limited

4 Hubtown Bus Terminal (Mehsana) Private Limited

5 Hubtown Bus Terminal (Surat) Private Limited

6 Hubtown Bus Terminal (Vadodara) Private Limited

7 Joyous Housing Private Limited (formerly known as Joyous Housing Limited)

8 Rare Townships Private Limited

9 Sunstream City Private Limited

10 Akruti GM JV

11 Akruti Jay Chandan JV

12 Akruti Jay Developers

13 Akruti Kailash Constructions

14 Akruti Realty Forefront Combine

15 Akruti Steelfab Corporation

16 Akruti SMC JV

17 Gandhi Adhivitiya Combine

18 Gulati Estate Joint Ventures

19 Hiranandani Akruti JV

20 Panama JV

21 Shreenath Realtors

22 Sole Builders

23 Primeria JV (upto June 30, 2013)

iV. Key management Personnel

1 Mr. Hemant M. Shah, Executive Chairman

2 Mr. Vyomesh M. Shah, Managing Director

V. relatives of Key management Personnel

1 Mrs. Lata M. Shah, Mother of Executive Chairman and Managing Director

2 Mrs. Kunjal H. Shah, Wife of Executive Chairman

3 Mrs. Falguni V. Shah, Wife of Managing Director

4 Mr. Rushank V. Shah, Son of Managing Director

5 Mr. Khilen V. Shah, Son of Managing Director

6 Mr. Kushal H. Shah, Son of Executive Chairman

7 Mrs. Nutan Dhanki, Sister of Executive Chairman and Managing Director

8 Mrs. Hemanti Parekh, Sister of Executive Chairman and Managing Director

9 Hemant M. Shah HUF- Karta Executive Chairman

10 Vyomesh M. Shah HUF- Karta Managing Director

11 Mahipatray V. Shah HUF- Karta Executive Chairman

12 Mahipatray V. Shah Discreationary Trust- Trustees Executive Chairman and Managing Director

13 Estate of Mahipatray V Shah – Benefciary Executive Chairman and Managing Director

Vi. enterprises where Key management Personnel or their relatives exercise significant infuence

(Where transactions have taken place)

1 Buildbyte. Com. (India) Private Limited

2 Citygold Management Services Private Limited

3 Fourjone Realtors Private Limited

4 Helik Advisory Limited

5 Ichha Constructions Private Limited

6 Lista City Private Limited

7 Starzone Developers Private Limited

8 Sunmist Builders Private Limited

9 Superaction Realty Private Limited

10 Trans Gulf MEP Engineers Private Limited

11 Ukay Valves and Founders Private Limited

12 Vishwajeet Consultancy Private Limited

NOTE ''4''

A major fire took place at the registered office of the company on December 23, 2011, causing extensive damage and destruction of records and assets of the Company, including financial accounting records. The management is of the opinion that no significant adjustments would be necessary to the position reported in the financial statements, upon reconstruction of balance documents and records.

NOTE ''5''

Loans from financial institutions, debenture holders, and loans & advances are subject to confirmation and are considered payable / realisable, as the case may be.

NOTE ''6''

Previous year figures have been regrouped / reclassified wherever necessary, to make them comparable with current year figures in financial statements.


Mar 31, 2013

NOTE ''1'' : CORPORATE INFORMATION

Hubtown Limited is a listed public limited company domiciled in India, incorporated under The Companies Act, 1956. The Company is engaged in real estate business of construction and development of Residential and Commercial Premises, SEZs, Biotech Park, Build Operate Transfer (BOT) Projects, etc. through both - on its own and through its subsidiaries / joint ventures / associate companies.

NOTE ''2''

During the previous year, a major fre took place at the registered offce of the Company, on 23rd December, 2011, causing extensive damage and destruction of the records, documents and assets of the Company. However, the fnancial accounting records of the Company were intact. The assets of the Company at its registered offce, which were destroyed in the fre , were insured. On account of pending approval of the claims from the insurer, the Company had provided for losses to the extent of current year Rs. Nil (P.Y. Rs. 350.00 lacs) on a prudent basis.

31 March, 2013 31 March, 2012 (Rs. in lacs) (Rs. in lacs)

NOTE ''3''

CONTINGENT LIABILITIES (NOT PROVIDED FOR) :

(A) Claims against the Company not acknowledged as debts on account of:

1) Income tax matters under appeal 12.52 1,179.91

2) Demand notice issued by Brihanmumbai Municipal Corporation for land 548.19 548.19 construction charges (property tax)

3) Development permission from forest department 156.22 156.22

(B) On account of corporate guarantees issued by the Company to bankers and others 31,018.45 78,138.97 on behalf of other companies and joint ventures for facilities availed by them (amount outstanding thereagainst.) (Refer footnote)

Further interest / penalty that may accrue on original demands are not ascertainable at present. The Company has taken necessary steps to protect its position with respect to the above referred claims, which in its opinion, based on professional / legal advice are not sustainable.

Footnote:

Contingent liabilities including corporate guarantees are as identifed and issued by the Company and relied upon by the auditors.

NOTE ''4''

RELATED PARTIES DISCLOSURES

A. Names of related parties and description of relationship I. Subsidiaries

1 ABP Realty Advisors Private Limited

2 Ackruti Safeguard Systems Private Limited

3 Adhivitiya Properties Limited

4 Arnav Gruh Limited

5 Citygold Education Research Limited

6 Citygold Farming Private Limited

7 Devkrupa Build Tech Limited

8 Diviniti Projects Private Limited

9 Gujarat Akruti - TCG Biotech Limited

10 Halitious Developer Limited

11 Headland Farming Private Limited

12 Heddle Knowledge Private Limited

13 Heeler Hospitality Private Limited

14 Heet Builders Private Limited

15 Holiac Realty Private Limited (formerly known as Holiac Realty Limited ) (upto September 30, 2012)

16 India Development And Construction Venture Capital Private Limited

17 Joynest Premises Private Limited (from February 15, 2013)

18 Merrygold Buildcon Private Limited

19 Pushpak Healthcare Services Private Limited (upto June 01, 2012)

20 Sheshan Housing & Area Development Engineers Limited

21 Upvan Lake Resorts Private Limited

22 Urvi Build Tech Limited

23 Vama Housing Limited

24 Vega Developers Private Limited

25 Vishal Nirman (India) Limited

26 Vishal Techno Commerce Limited

27 Yantti Buildcon Private Limited

II. Associates

1 Citywood Builders Private Limited

2 Comral Realty Private Limited

3 Forefront Realty Private Limited (from June 01, 2012)

4 Glamorous Properties Private Limited (from May 25, 2012)

5 Harbinger Developers Private Limited

6 Holiac Realty Private Limited (Formerly known as Holiac Realty Limited) (from October 01, 2012)

7 Joynest Premises Private Limited (upto February 14, 2013)

8 Pristine Developers Private Limited

9 Trans Gulf MEP Engineers Private Limited (upto September 30, 2012)

10 Whitebud Developers Limited

11 Vinca Developer Private Limited

12 Yellowcity Builders Private Limited

13 Sunstream City Private Limited (upto December 31,2012)

III. Jointly controlled entities

1 Hubtown Bus Terminal (Adajan) Private Limited (formerly known as Ackruti City Bus Terminal (Adajan) Private Limited)

2 Hubtown Bus Terminal (Ahmedabad) Private Limited (formerly known as Ackruti City Bus Terminal (Ahmedabad) Private Limited)

3 Hubtown Bus Terminal (Mehsana) Private Limited (formerly known as Ackruti City Bus Terminal (Mehsana) Private Limited)

4 Hubtown Bus Terminal (Vadodara) Private Limited (formerly known as Ackruti City Bus Terminal (Vadodara) Private Limited)

5 Hubtown Bus Terminal (Surat) Private Limited (formerly known as Ackruti City Bus Terminal (Surat) Private Limited)

6 Hoary Realty Limited

7 DLF Info Parks Pune Limited (formerly known as Ackruti City Magnum Limited) (upto May 21, 2012)

8 Joyous Housing Limited

9 Rare Townships Private Limited

10 Sunstream City Private Limited (from January 01,2013)

11 Aarti Projects and Constructions (upto June 30, 2012)

12 Akruti Jay Developers

13 Akruti Kailash Constructions

14 Akruti Realty Forefront Combine

15 Akruti Steelfab Corporation

16 Shreenath Realtors

17 Sole Builders

18 Hiranandani Akruti JV

19 Akruti Jay Chandan JV

20 Primeria JV

21 Akruti GM JV

22 Akruti SMC JV

23 Gandhi Adhivitiya Combine

24 Panama JV

25 Gulati Estate Joint Ventures

I V. Key Management Personnel

1 Mr. Hemant M. Shah, Executive Chairman

2 Mr. Vyomesh M. Shah, Managing Director

3 Mr. Madhukar B. Chobe, Executive Director (upto December 31, 2012)

V. Relatives of Key Management Personnel

1 Mrs. Lata M. Shah, Mother of Executive Chairman and Managing Director

2 Mrs. Kunjal H. Shah, Wife of Executive Chairman

3 Mrs. Falguni V. Shah, Wife of Managing Director

4 Mr. Rushank V. Shah, Son of Managing Director

5 Mr. Khilen V. Shah, Son of Managing Director

6 Mr. Kushal H. Shah, Son of Executive Chairman

7 Mrs. Nutan Dhanki, Sister of Executive Chairman and Managing Director

8 Mrs. Hemanti Parekh, Sister of Executive Chairman and Managing Director

9 Hemant M. Shah HUF- Karta Executive Chairman

10 Vyomesh M. Shah HUF- Karta Managing Director

11 Mahipatray V. Shah HUF- Karta Executive Chairman

12 Mahipatray V. Shah Discreationary Trust- Trustees Executive Chairman and Managing Director

13 Estate of Mahipatray V Shah - Beneifcary Executive Chairman and Managing Director

VI. Enterprises where key managerial personnel or their relatives exercise signifcant infuence

(Where transactions have taken place)

1 Buildbyte. Com. (India) Private Limited

2 Citygold Management Services Private Limited

3 Fourjone Realtors Private Limited

4 Helik Advisory Limited

5 Ichha Constructions Private Limited

6 Lista City Private Limited

7 Saicharan Consultancy Private Limited

8 Sanskriti Developers Private Limited

9 Sunmist Builders Private Limited

10 Superaction Realty Private Limited

11 Bigcity Developers Private Limited

12 Starzone Developers Private Limited

13 Trans Gulf MEP Engineers Private Limited (from October 01, 2012)

14 Ukay Valves and Founders Private Limited

15 Vishwajeet Consultancy Private Limited

NOTE ''6''

DISCLOSURE OF DERIVATIVES

a. No derivative instruments were outstanding at the end of the year.

b. Uncovered risks in foreign currency transactions disclosed as at 31 March, 2013.

c. Previous year fgures are given in brackets.

NOTE ''7''

Previous year fgures have been regrouped / reclassifed wherever necessary, to make them comparable with current year fgures in fnancial statements.


Mar 31, 2012

Corporate information

Hubtown Limited (formerly known as Ackruti City Limited) is a listed public limited company domiciled in India, incorporated under the Companies Act, 1956. The Company is engaged in real estate business of construction and development of Residential and Commercial Premises, SEZs, Biotech Park and Build Operate Transfer (BOT) Projects, etc. through both - on its own and through its subsidiaries / joint ventures / associate companies.

a. Terms / rights attached to Equity Shares :

The Company has a single class of equity shares having a par value of Rs. 10/- per share. Each holder of equity share is entitled to one vote per share. The Company declares and pays dividend in Indian rupees, The dividend proposed by the Board of Directors is subject to the approval of shareholders in the ensuing annual general meeting. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company in proportion to the number of equity shares held by each shareholder, after settlement of all preferential obligations.

b. Shares allotted as fully paid up by way of bonus shares (during five years immediately preceding 31 March, 2012) 12,000,000 equity shares have been allotted as fully paid-up bonus shares, by way of capitalisation of General Reserve and Surplus in the Statement of Profit and Loss, for the financial year 2006-2007,

a. 18.50% Debentures of Rs. 7,500 lacs are redeemable in twenty five equal monthly installments commencing from December, 2012. These debentures are secured by mortgage on the immovable properties located at Jogeshwari (East), Mumbai as well as receivables and advances arising from such properties, and personal guarantees of the promoters.

b. 12% Debentures of Rs. 10,000 lacs are redeemable at a premium in March, 2013. These debentures are secured by second ranking mortgage over project land and structures thereto at J. R Road, Andheri (West), as well as all receivables and advances arising from such project and further secured by exclusive charge over land situated at village Mogra, Andheri (East), Mumbai.

c. 17% Debentures of Rs. 7,000 lacs are redeemable at par by the end of June 2012, These debentures are secured by mortgage / charge on the immovable properties located at Jogeshwari (East), Mumbai and by pledge of equity shares held by promoters and their family members in the Company. (Prepaid Rs. 1,250 lacs during the previous year).

d. Secured term loans from banks carry interest rates within a range of 12% to 18%. Rs. 50,380,79 lacs will become due in March 2013, Rs. 12,198.76 lacs will become due in March 2014 and the balance of Rs. 13,176.00 lacs will become due in eight equal quarterly installments of Rs. 1,362.00 lacs and sixty equal quarterly instalments of t 38.00 lacs commencing from June, 2014. The nature of securities are:

e. Secured loans from financial institutions carry interest rates within a range of 15 % to 18 %. Rs. 14,342.19 lacs will be repaia by March 2013 in eight equal installments, Rs. 1,500 lacs will be repaid by March 2014 in three equal installments and the balance of X 150 lacs will be repaid in April, 2014. These loans are secured against pledge of equity shares in the Company held by the promoters and their family members and personal guarantee of one or more promoters.

f. Unsecured long term public deposits carry interest rates within a range of 10.50% to 11,00%. The same will become repayable between a period of 1 -3 years.

g. Secured loans from others carry interest rates within a range of 15% to 20%. The same will be repaid in twenty-one equal installments by January, 2014. X 2,075.78 lacs will be repaid by March, 2013 and X 61.32 lacs will be repaid by January, 2014. These loans are secured against pledge of equity shares in the Company held by the promoters and their family members.

h. Unsecured loans from others carry interest rates within a range of 10% to 21% and will become due in thirteen equal monthly installments including interest from the balance sheet date.

9.1 Details of dues to micro and small enterprises as defined under MSMED Act, 2006

a. 'Trade payables' in Note 6 and Note 9 include Rs. Nil (RY Rs. 4.59 lacs) due to micro and small enterprises registered under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED),

b. No interest was paid / payable to micro or small enterprises during the year,

c. The above information has been determined to the extent such parties could be identified on the basis of the information available with the Company regarding the status of parties under the MSMED and has been relied upon by the auditors.

a. Investment property with a carrying value of Rs. 87.53 lacs (RY Rs. 92.11 lacs) are subject to first charge against the Company's working capital loans,

b. The face value of investment in debentures of Rs. 7500.00 lacs (RY. Rs. 12500.00 lacs) represents the balance value of consideration of sale of developement rights in earlier years receivable in future. The management is of the view that as the consideration was inclusive of Profit and interest, no coupon was charged on such debentures.

a. Current portion of advances recoverable in cash or kind includes an amount of Rs. 106.17 lacs being the excess of contractual remuneration paid to the Executive Chairman and the Managing Director over the maximum remuneration payable under Schedule XIII to the Companies Act, 1956. Such amount has since been recovered from them,

a. Trade receivables Include Rs. 1,864.53 lacs (RY. Rs. 5,180.68 lacs), due from a customer who had during an earlier year requested the Company to extend the credit period originally granted in the sale agreement. The party has affirmed to remain committed to the consideration originally agreed to and has, during the current year, discharged a part of the total outstanding debt. This party had earlier requested the management for further extension upto 31st August, 2012 for payment of its dues. Relying on the confirmation received from such party, the Company, is of the opinion that the amount would be fully recoverable as supported by certification and other documentary evidences.

NOTE '1'

During the year a major fire took place at the registered office of the Company on 23rd December, 2011, causing extensive damage and destruction of the records, documents and assets of the Company. However, the financial accounting records of the Company were intact. The assets of the Company at its registered office, which were destroyed in the fire, were insured. On account of pending approval of the claims from the insurer, the Company has provided for losses to the extent of Rs. 35,000,000/- on a prudent basis.

NOTE '2'

RELATED PARTIES DISCLOSURES

A. NAMES OF RELATED PARTIES AND DESCRIPTION OF RELATIONS

I. SUBSIDIARIES

1 ABP Realty Advisors Private Limited

2 Ackruti Safeguard Systems Private Limited

3 Ackruti Campus of Research and Education Private Limited (upto December 28, 2011)

4 Ackruti City Magnum limited (upto June 30, 2011)

5 Adhivitiya Properties Limited

6 Arnav Gruh Limited

7 Citygold Education Research Limited

8 Citygold Farming Private Limited

9 Devkrupa Build Tech Limited

10 Diviniti Projects Private Limited

11 Gujarat Akruti - TCG Biotech Limited

12 Halitious Developer Limited (Formerly known as Halitious Warehousing Limited)

13 Harmony Erectors Private Limited (upto December 28, 2011)

14 Headland Farming Private Limited

15 Heddle Knowledge Private Limited

16 Heeler Hospitality Private Limited

17 Heet Builders Private Limited

18 Holiac Realty Limited

19 India Development and Construction Venture Capital Private Limited

20 Jihant Housing Private Limited (upto December 28, 2011)

21 Merrygold Buildcon Private Limited

I. SUBSIDIARIES

22 Nova Realty Private Limited (upto December 28, 2011)

23 Pushpak Healthcare Services Private Limited

24 Sheshan Housing and Area Development Engineers Limited

25 Sunmist Builders Private Limited (upto December 27, 2011)

26 Superaction Realty Private Limited (upto December 28, 2011)

27 Upvan Lake Resorts Private Limited

28 Urvi Build Tech Limited

29 Vama Housing Limited

30 Vega Developers Private Limited

31 Vishal Nirman (India) Limited

32 Vishal Techno Commerce Limited

33 Yantti Buildcon Private Limited

II. ASSOCIATES

1 Ackruti City Bus Terminal (Surat) Private Limited (upto February 18, 2012)

2 Bigcity Developers Private Limited (upto December 27, 2011)

3 Forefront Realty Private Limited (upto December 28, 2011) .

4 Citywood Builders Private Limited

5 Comral Realty Private Limited

6 Gallant Infotech Private Limited

7 Glamorous Properties Private Limited (upto July 31, 2011)

8 Harbinger Developers Private Limited

9 Joynest Premises Private Limited

10 Pristine Developers Private Limited

11 Sunstream City Private Limited

12 Trans Gulf MEP Engineers Private Limited (from September 8, 2011)

13 Whitebud Developers Limited

14 Vinca Developer Private Limited

15 Leading Work Properties Private Limited , .

16 Yellowcity Builders Private Limited

III. JOINTLY CONTROLLED ENTITIES

1 Ackruti City Bus Terminal (Vadodara) Private Limited

2 Ackruti City Bus Terminal (Mehsana) Private Limited

3 Ackruti City Bus Terminal (Adajan) Private Limited

4 Ackruti City Bus Terminal (Ahmedabad) Private Limited

5 Ackruti City Magnum Limited (from July 01, 2011)

6 Quadron Business Park Limited (Formerly known as DLF Ackruti Info Parks (Pune) Limited (upto December 28,2011)

7 Hoary Realty Limited

8 Joyous Housing Limited

9 Rare Townships Private Limited

10 Aarti Projects and Constructions

11 Akruti Jay Chandan JV

12 Primeria JV (Formerly known as Akruti Forefront JV)

13 Akruti GMJV

14 Akruti Jay Developers

15 Akruti Kailash Constructions

16 Akruti Realty Forefront Combine

17 Akruti Steelfab Corporation

III. JOINTLY CONTROLLED ENTITIES

18 Hiranandani Akruti JV

19 Shreenath Realtors

20 Akruti SMC JV

21 Gandhi Adhivitiya Combine

22 Sole Builders (formerly known as Commercial Construction Corporation)

23 Panama JV (from April 01, 2011)

24 Gulati Estate Joint Venture (from February 22, 2012)

IV. KEY MANAGEMENT PERSONNEL

1 Mr, Hemant M. Shah, Executive Chairman

2 Mr, Vyomesh M. Shah, Managing Director

3 Mr. Madhukar B. Chobe, Executive Director

V. RELATIVES OF KEY MANAGEMENT PERSONNEL

1 Mrs. Lata M. Shah - Mother of Executive Chairman and Managing Director

2 Mrs. Kunjal H. Shah - Wife of Executive Chairman

3 Mrs. Falguni V, Shah - Wife of Managing Director

4 Mr. Rushank V. Shah - Son of Managing Director

5 Mr. Khilen V, Shah - Son of Managing Director

6 Master Kushal H. Shah - Son of Executive Chairman

7 Hemant M. Shah HUF - Karta Executive Chairman

8 Vyomesh M. Shah HUF - Karta Managing Director

9 Mahipatray V. Shah HUF - Karta Executive Chairman

VI. ENTERPRISES WHERE KEY MANAGERIAL PERSONNEL OR THEIR RELATIVES EXERCISE SIGNIFICANT INFLUENCE (where transactions have taken place)

1 Ackruti Campus of Research and Education Private Limited (from December 28, 2011)

2 Bigcity Developers Private Limited (from December 28, 2011)

3 Buildbyte. Com. (India) Private Limited

4 Citygold Management Services Private Limited

5 Forefront Realty Private Limited (from December 28, 2011)

6 Harmony Erectors Private Limited (from December 28, 2011)

7 Helik Advisory Limited (Formerly known as Helik Consultancy Limited)

8 Ichha Constructions Private Limited

9 Saicharan Consultancy Private Limited

10 Sanskriti Developers Private Limited

NOTE '3'

CONTINGENT LIABILITIES (NOT PROVIDED FOR) :

(A) Claims against the Company not acknowledged as debts on account of:

1) Income tax matters under appeal 1,179.91 6,078.37

2) Demand notice issued by Brihanmumbai Mahanagar Palika for land construction charges (property tax) 548.19 547.14

3) Development permission from forest department 156.22 156.22

(B) On account of corporate guarantees issued by the Company to bankers on behalf of other companies and joint ventures for facilities availed by them 72,968.49 71,297.12 (amounts outstanding there against.)

Further, interest / penalty that may accrue on original demands are not ascertainable, at present. The Company has taken necessary steps to protect its position with respect to the above referred claims, which in its opinion, based on professional / legal advice are not sustainable. -

NOTE '4'.

As notified by the Ministry of Corporate Affairs, the Revised Schedule VI to the Companies Act, 1956 is applicable to the financial statements for the financial year commencing on or after 1st April, 2011, Accordingly, the financial statements for the year ended 31st March, 2012 are prepared and presented in accordance with the Revised Schedule VI. The amounts and disclosures included in the financial statements of the previous year have been reclassified to conform to the requirements of the Revised Schedule VI.


Mar 31, 2011

1. RELATED PARTIES DISCLOSURES

A. NAMES OF RELATED PARTIES AND DESCRIPTION OF RELATIONSHIPS I) SUBSIDIARIES

1. Adhivitiya Properties Limited

2. Halitious Warehousing Limited (Formerly known as Ackruti Warehousing Limited)

3. Arnav Gruh Limited

4. Devkrupa Build Tech Limited

5. Gujarat Akruti - TCG Biotech Limited

6. Holiac Realty Limited

7. Urvi Build Tech Limited

8. Sheshan Housing & Area Development Engineers Limited

9. Heet Builders Private Limited (Formerly known as Vaishnavi Builders & Developers Private Limited)

10. Varna Housing Limited

11. Vishal Nirman (India) Limited

12. Vishal Techno Commerce Limited

13. Ackruti Safeguard Systems Private Limited (Formerly known as Ackruti Security Plates Private Limited)

14. Ackruti Campus of Research and Education Private Limited

15. Headland Farming Private Limited (Formerly known as Ackruti City Farming Private Limited)

16. Heddle Knowledge Private Limited (Formerly known as Ackruti City Knowledge Private Limited)

17. Heeler Hospitality Private Limited (Formerly known as Ackruti Guestline Private Limited)

18. Citygold Education Research Limited

19. Citygold Farming Private Limited

20. Harmony Erectors Private Limited

21. Sunmist Builders Private Limited (Formerly known as Oracle Shelters Private Limited)

22. Nova Realty Private Limited

23. Jihant Housing Private Limited

24. ABP Realty Advisors Private Limited

25. India Development and Construction Venture Capital Private Limited

26. Superaction Realty Private Limited

27. Yantti Buildcon Private Limited

28. Upvan Lake Resorts Private Limited

29. Merrygold Buildcon Private Limited

30. Vega Developers Private Limited (Formerly known as Pure Gold Developers Private Limited)

31. Ackruti City Magnum Limited (w.e.f. F. Y. 2010-11)

32. Diviniti Projects Private Limited (Formerly known as TDR Properties Private Limited)

33. Ackruti Center Infotech Limited (Subsidiary upto the previous year)

34. Ackruti Middle East FZE (Subsidiary upto the previous year)

35. E Commerce Magnum Solution Limited (Subsidiary upto the previous year)

36. Pushpak Healthcare Services Private Limited

II) ASSOCIATES, WHERE TRANSACTIONS HAVE TAKEN PLACE

1. Ackruti City Bus Terminal (Ahmedabad) Private Limited (w.e.f. F. Y. 2010-11)

2. Ackruti City Bus Terminal (Surat) Private Limited

3. Buildbyte.Com. (India) Private Limited

4. Whitebud Developers Limited (Formerly known as Agreem Properties Limited)

5. Forefront Realty Private Limited (Formerly known as V D Developers Private Limited)

6. Gallant Infotech Private Limited

7. Glamorous Properties Private Limited

8. Harbinger Developers Private Limited

9. Comral Realty Private Limited (Formerly known as Kamla Shanti Realties Private Limited)

10. Pristine Developers Private Limited

11. Citywood Builders Private Limited (Formerly known as Shree Swami Samarth Developers Private Limited)

12. Yellowcity Builders Private Limited

13. Sunstream City Private Limited (Formerly known as Zeus Infrastructure Private Limited)

14. Joynest Premises Private Limited (Formerly known as Zeal Ventures Private Limited)

15. Leading Work Properties Private Limited

16. Bigcity Developers Private Limited (Formerly known as Nectar Developers Private Limited)

III) JOINTLY CONTROLLED ENTITIES

1. Aarti Projects & Constructions

2. Akruti Forefront JV

3. Akruti GM JV

4. Akruti Jay Chandan JV

5. Ackruti Jay Developers

6. Akruti Kailash Constructions

7. Akruti Realty Forefront Combine

8. Akruti Steelfab Corporation

9. Hiranandani Akruti JV

10. Gandhi Adhivitiya Combine (Partner M/s. Adhivitya Properties Limited, a wholly owned subsidiary of Ackruti City Limited)

11. Shreenath Realtors

12. Commercial Construction Corporation

13. DLF Ackruti Info Parks (Pune) Limited

14. Rare Townships Private Limited (Formerly known as Infrastructure Ventures India Private Limited )

15. Joyous Housing Limited

16. Akruti SMC JV (Co-venturer Arnav Gruh Limited, a Wholly Owned Subsidiary of Ackruti City Limited)

17. Hoary Realty Limited (Formerly known as Chaitra Realty Limited) (Associate during the previous year)

18. Ackruti City Bus Terminal (Vadodara) Private Limited (Associate during the previous year)

19. Ackruti City Bus Terminal (Mehsana) Private Limited (Associate during the previous year)

20. Ackruti City Bus Terminal (Adajan) Private Limited (Associate during the previous year)

IV) (a) KEY MANAGEMENT PERSONNEL

1. Mr. Hemant M, Shah (Executive Chairman)

2. Mr. Vyomesh M. Shah (Managing Director)

3. Mr. Madhukar B, Chobe (Wholetime Director)

(b) RELATIVES OF KEY MANAGEMENT PERSONNEL (where transactions have taken place)

1. Mrs. Kunjal H. Shah

2. Mrs. Falguni V Shah

3. Mrs. Lata M. Shah

4. Mr. Rushank V. Shah

5. Mr. Khilen V. Shah

6. Master Kushal H. Shah

7. Hemant M. Shah HUF

8. Vyomesh M. Shah HUF

9. Mahipatray V. Shah HUF

(C) ENTERPRISES WHERE KEY MANAGERIAL PERSONNEL OR THEIR RELATIVES EXERCISE SIGNIFICANT INFLUENCE (where transactions have taken place)

1. Citygold Management Services Private Limited

2. Ackruti Satety Innovations Limited

3. Ackruti Salt Works Limited

4. Ichha Constructions Private Limited

5. Saicharan Consultancy Private Limited

6. Sanskriti Developers Private Limited

Note: Related Party relationships are identified by the Company and relied upon by the auditors

17, (a) Sundry Creditors in Schedule G to the Accounts include (i) Rs. 459,509/-(RY- Rs. Nil) due to micro and small enterprises registered under the Micro, Small and Medium Enterprises Development Act, 2006 (MSME); and (ii) Rs. 985,953,066/- (RY- Rs. 477,386,540/-) due to other creditors.

(b) No interest was paid / payable to micro or small enterprises during the year.

(c) The above information has been determined to the extent such parties could be identified on the basis of the information available with the Company regarding the status of suppliers under the MSME.

18. "Sundry Debtors as at 31st March, 2011, include Rs. 51.81 Crore (Rs. 61.24 Crore as at 31.03.2010), due from two customers who had during an earlier year, requested the Company for extending the credit period originally granted in their respective sale agreements, The Parties had affirmed to remain committed to the consideration originally agreed to and have, during the current year, discharged a part of the total outstanding debt. These Parties have requested the management for further extension upto 30th September, 2011. Based on the above, the management considers the debt to be good and fully recoverable as at the balance sheet date.

21. Previous years figures have been regrouped / recast wherever necessary.


Mar 31, 2010

I.RELATED PARTY DISCLOUSURES:

A. NAMES OF RELATED PARTIES AND DESCRIPTION OF RELATIONSHIPS I) SUBSIDIARIES

1. ABP Realty Advisors Private Limited (Formerly known as Ackruti City Venture Capital Management Private Limited) (w.e.f. F. Y. 2009-2010)

2. Ackruti Campus of Research and Education Private Limited (Formerly known as Akruti Campus of Research and Education Private Limited) (w.e.f. F. Y. 2009-2010)

3. Ackruti Center Infotech Limited

4. Ackruti City Farming Private Limited (Formerly known as Akruti City Farming Private Limited) (w.e.f. F. Y. 2009-2010)

5. Ackruti City Knowledge Private Limited (Formerly known as Akruti City Knowledge Private Limited) (w.e.f. F. Y. 2009-2010)

6. Ackruti Guestline Private Limited (Formerly known as Akruti Guestline Private Limited) (w.e.f. F. Y. 2009-2010)

7. Ackruti Security Plates Private Limited (Formerly known as Akruti Security Plates Private Limited) (w.e.f. F. Y. 2009-2010) (associate during the previous year)

8. Ackruti Warehousing Limited (Formerly known as Akruti Warehousing Limited)

9. Adhivitiya Properties Limited

10. Akruti Middle East, FZE

11. Arnav Gruh Limited

12. Citygold Education Research Limited (w.e.f. F. Y. 2009-2010)

13. Citygold Farming Private Limited (w.e.f. F. Y. 2009-2010)

14. Devkrupa Build Tech Limited

15. E Commerce Magnum Solution Limited

16. Gujarat Akruti - TCG Biotech Limited

17. Harmony Erectors Private Limited (w.e.f. F. Y. 2009-2010)

18. India Development And Construction Venture Capital Private Limited (Formerly known as Ackruti City Venture Capital Private Limited) (w.e.f. F. Y. 2009-2010)

19. Holiac Realty Limited (Formerly known as New Empire Realtors Limited)

20. Jihant Housing Private Limited (w.e.f. F. Y. 2009-2010)

21. Nova Realty Private Limited (w.e.f. F. Y. 2009-2010)

22. Oracle Shelters Private Limited (w.e.f. F. Y. 2009-2010)

23. Pushpak Healthcare Services Private Limited

24. Sheshan Housing & Area Development Engineers Limited

25. Superaction Realty Private Limited (w.e.f. F. Y. 2009-2010)

26. TDR Properties Limited

27. Upvan Lake Resorts Private Limited (w.e.f. F. Y. 2009-2010)

28. Urvi Build Tech Limited

29. Vaishnavi Builders & Developers Private Limited

30. Vama Housing Limited

31. Vishal Nirman (India) Limited

32. Vishal Techno Commerce Limited

33. Yantti Buildcon Private Limited (w.e.f. F. Y. 2009-2010)

II) ASSOCIATES, WHERE TRANSACTIONS HAVE TAKEN PLACE

1. Ackruti City Bus Terminal (Adajan) Limited (Formerly known as Multicity Bus Terminal (Surat-Adajan) Limited)

2. Ackruti City Bus Terminal (Mehsana) Private Limited (Formerly a public limited company)

3. Ackruti City Bus Terminal (Vadodara) Private Limited (Formerly a public limited company)

4. Agreem Properties Limited (subsidiary during the previous year)

5. Buildbyte.Com (India) Private Limited (w.e.f. F. Y. 2009-2010)

6. Chaitra Realty Limited

7. Forefront Realty Private Limited (Formerly known as V D Developers Private Limited) (w.e.f. F.Y. 2009-2010)

8. Gallant Infotech Private Limited

9. Glamorous Properties Private Limited

10. Harbinger Developers Private Limited (w.e.f. F. Y. 2009-2010)

11. Kamla Shanti Realties Private Limited (w.e.f. F. Y. 2009-2010)

12. Ackruti City Bus Terminal (Surat) Private Limited (Formerly known as Multicity Bus Terminal (Surat) Private Limited)

13. Pristine Developers Private Limited

14. Shree Swami Samarth Developers Private Limited (Partnership Firm in Previous year)

15. Vinca Developer Private Limited (w.e.f. F. Y. 2009-2010)

16. Yellowcity Builders Private Limited (w.e.f. F. Y. 2009-2010)

17. Zeus Infrastructure Private Limited

III) JOINTLY CONTROLLED ENTITIES

1. Aarti Projects & Constructions

2. Akruti Forefront JV

3. Akruti GM JV

4. Akruti Jay Chandan JV

5. Akruti Jay Developers

6. Akruti Kailash Constructions

7. Akruti Realty Forefront Combine

8. Akruti Steelfab Corporation

9. Hiranandani Akruti JV

10. Niharika Shopping Mall JV (For a part of the year)

11. Shreenath Realtors

12. Commercial Construction Corporation

13. DLF Ackruti Info Parks (Pune) Limited (Formerly known as DLF Akruti Info Parks (Pune) Limited) (Associate during the previous year)

14. Infrastructure Ventures India Private Limited (Associate during the previous year)

15. Joyous Housing Limited (Associate during the previous year)

16. Akruti SMC JV

17. Gandhi Adhivitiya Combine

IV) (a) KEY MANAGEMENT PERSONNEL

1. Mr. Hemant M. Shah (Executive Chairman, Wholetime Director)

2. Mr. Vyomesh M. Shah (Managing Director)

3. Mr. Madhukar B. Chobe (Wholetime Director)



(b) RELATIVES OF KEY MANAGEMENT PERSONNEL (where transactions have taken place)

1. Mrs. Kunjal H. Shah

2. Mrs. Falguni V. Shah

3. Mrs. Lata M. Shah

4. Mr. Rushank V. Shah

5. Mr. Khilen V. Shah

6. Master Kushal H. Shah

7. Hemant M. Shah HUF

8. Vyomesh M. Shah HUF

9. Mahipatray V. Shah HUF

(c) ENTERPRISES WHERE KEY MANAGERIAL PERSONNEL OR THEIR RELATIVES EXERCISE SIGNIFICANT INFLUENCE (where transactions have taken place)

1. Citygold Management Services Private Limited

2. Ackruti Safety Innovations Limited

3. Ackruti Salt Works Limited

4. Boulevard Realty Private Limited (w.e.f. F. Y. 2009-2010)

5. Fourjone Realtors Private Limited

6. Ichha Constructions Private Limited

7. Refresh Buildcon Private Limited (w.e.f. F. Y. 2009-2010)

8. Saicharan Consultancy Private Limited

9. Sanskriti Developers Private Limited

10. Ackruti City Bus Terminal (Ahmedabad) Private Limited

Note: Related Party relationships are identified by the Company and relied upon by the auditors

1. CONTINGENT LIABILITIES (NOT PROVIDED FOR):

Sr. As at As At No. Particulars 31-03-2010 31-03-2009

(Rupees) (Rupees)

(A) Claims against the Company, not acknowledged as debts on account of: -

1 Income Tax matters under appeal for Financial Year 2000–2001 to 2006-2007. - 368,661,015

2 Demand notice issued by Brihanmumbai Municipal Corporation for Land Under Construction charges (property tax). 48,051,625 41,197,579

3 Petition filed against the Company, under the Maharashtra Slum Area (Improvement, Clearance and Redevelopment) Act, 1971, in relation to a Project. 5,000,000 5,000,000

4 Petition pending with the Honourable High Court with regards to Mahalaxmi Car Project at Bhulabhai Desai Road, Mumbai - 2,446,348

5 Development Permission from Forest Department 15,622,000 -

(B) On account of corporate guarantees issued by the Company to Bankers 9,332,850,075 976,733,756 on behalf of other companies and joint ventures for facilities availed by them (amount outstanding there against).

Note:

Further interest / penalty that may accrue on original demands are not ascertainable, at present. The Company has taken necessary steps to protect its position with respect to the above referred claims, which in its opinion, based on professional / legal advice, are not sustainable.

2. Estimated amount of contracts remaining to be executed on capital account, not provided for amount to Rs. 3,749,648/- (net of advances) (Previous year : Rs.2,917,812/-).

3. (a) Sundry Creditors in Schedule G to the Accounts include (i) Rs. NIL (P.Y.- Rs. Nil) due to micro and small enterprises registered under the Micro, Small and Medium Enterprises Development Act, 2006 (MSME); and (ii) Rs. 477,386,540/- (P.Y.– Rs. 363,233,423/-) due to other creditors.

(b) No interest was paid / payable to micro or small enterprises during the year.

(c) The above information has been determined to the extent such parties could be identified on the basis of the information available with the Company regarding the status of suppliers under the MSME.

3. "Sundry Debtors as at 31st March, 2010, include Rs.61.24 Crore (Rs.441.30 Crore as at 31.03.2009), due from two customers who had during the previous year, requested the Company for extending the credit period originally granted in their respective sale agreements. The parties had affirmed to remain committed to the consideration originally agreed to and have, during the current year, discharged a large part of the total outstanding debt. These parties have requested the management for further extension upto 30th September, 2010. Based on the above, the management considers the debt to be good and fully recoverable as at the balance sheet date.

4. The Company, upto 30th June, 2009, was recognising revenue from sale of incomplete properties based on the percentage of completion method, only after work had physically progressed to the extent of 40% of the total work estimated. With effect from 1st July, 2009, revenue as per this method, is recognised upon incurring 25% of the total estimated project cost, subject to receipt of atleast 10% of the total sale consideration, which is in line with norms generally followed in the industry, so as to make the financial statements more comparable. As a result of this change, the revenue and the profit before taxation for the year are higher by Rs.3,385,966,512 and Rs.1,659,020,685, respectively. The effect of such change on the financial statements of subsequent financial years cannot be ascertained at present.

5. Previous years figures have been regrouped / recast wherever necessary.

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