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Notes to Accounts of Mahindra Lifespace Developers Ltd.

Mar 31, 2023

a. During the year ended 31st March, 2023, the Company has received ? 7,092.74 Lakhs as a consideration for capital reduction of 17,000 Class C equity shares from Joint Venture Company viz Mahindra Homes Private Limited (MHPL). The transaction was completed on December 28, 2022. During the year ended 31st March, 2022, the company has received ? 5,505.38 Lakhs as a consideration for buy back of 18,900 Class C equity shares from Joint Venture Company viz Mahindra Homes Private Limited (MHPL). The transaction was completed on 24th December, 2021

b. During the year ended 31st March, 2023, the Company has acquired 2,42,53,300 equity shares of Mahindra World City (Maharashtra) Limited and 1,12,670 equity shares of Deepmangal Developers Private Limited pursuant to rights issue by Mahindra World City (Maharashtra) Limited and Deepmangal Developers Private Limited respectively.

c. During the year ended 31st March, 2023, the Company has invested 7,83,514 equity shares of AMIP Industrial Parks Private Limited at its face value of ?10 each.

Exceptional Item:

d. Mahindra Homes Private Limited (MHPL), a Joint Venture of the Company, is executing residential projects at NCR. During the year MHPL launched Tower B of Luminare Project and experienced significant increase in sales velocity and prices. Pursuant to above, the Company has evaluated the carrying value of its investment and on the basis of estimated Net Present Value of forecasted cash flows expected to be generated by MHPL, reversed an impairment loss of ? 5,763.68 Lakhs. (31st March, 2022: 10,412.23 Lakhs)

e. A Scheme of Merger by absorption was filed under section 230-232 of the Companies Act, 2013 with National Company Law Tribunal, Chennai bench (NCLT) in December 2021 by the subsidiaries of the Company, viz. Mahindra Integrated Township Ltd (MITL) and Mahindra Residential Developers Ltd (MRDL), a subsidiary of MITL, for amalgamating with one of the joint venture company, Mahindra World City Developers Ltd. (MWCDL). The appointed date for the Scheme of Merger is April 01, 2022. NCLT has approved the said Scheme of Merger vide its Order dated December 09, 2022. The order is effective on December 30, 2022 i.e. the date of filing of certified copy of the order with the Registrar of Companies by MITL, MRDL. Pursuant to this, both MITL and MRDL stand dissolved without winding up.

Consequently, the Company has de-recognised the investments in equity shares of the above mentioned subsidiaries w.e.f. the effective date of the order i.e. December 30, 2022 and recognised the fair value of consideration which has resulted in exceptional gain of ? 6,673.59 lakhs for the year ended March 31, 2023.

1. Based on projections and estimates by the Company of the expected revenues and costs to completion, provision for losses to completion and/ or write off of costs carried to inventory are made on projects where the expected revenues are lower than the estimated costs to completion. In the opinion of the management, the net realisable value of the construction work in progress will not be lower than the costs so included therein. The amount of inventories recognised as an expense of '' 40,377.52 lakhs for the year ended 31st March, 2023.(31st March, 2022: '' 22,340.49 lakhs) include 31st March, 2023: '' 335.04 lakhs (31st March, 2022: '' NIL) in respect of write down of inventory to net realisable value.

2. The Company has availed cash credit facilities and short term loans, which are secured by hypothecation of inventories.

Terms/ rights attached to equity shares with voting rights

The Company has only one class of equity shares having par value of '' 10 per share. Each holder of equity shares is entitled to one vote per share and carry a right to dividends. The company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in ensuing Annual General Meeting

(iv) Shares reserved for issue under options

The Company has 450,036 (Previous Year 1,250,720) equity shares of Rs 10/- each reserved for issue under options [Refer Note 26].

(v) The allotment of 153,189 (Previous Year 153,189) equity shares of the Company has been kept in abeyance in accordance with Section 206A of the Companies Act, 1956 (Section 126 of the Companies Act, 2013), till such time the title of the bonafide owner of the shares is certified by the concerned Stock Exchange or the Special Court (Trial of Offences relating to Transactions in Securities).

Description of the nature and purpose of Other Equity:

General Reserve: The general reserve is used from time to time to transfer profits from retained earnings for appropriation purposes. There is no policy of regular transfer. Items included under General Reserve shall not be reclassified back into the Profit and Loss.

Securities Premium: The Securities Premium is created on issue of shares at a premium.

Share Options Outstanding Account: The Share Options Outstanding Account represents reserve in respect of equity settled share options granted to the Company’s employees in pursuance of the Employee Stock Option Plan.

Retained Earnings: This reserve represents cumulative profits of the Company and effects of remeasurement of defined benefit obligations. This reserve can be utilised in accordance with the provisions of Companies Act, 2013.

Share Application Money Pending allotment: This represents share application money received from the eligible employees upon exercise of employee stock option. The same will be transferred to equity share capital account after the allotment of shares to the applicants.

Defect Liability Provisions:

Provision for defect liability represents present value of management’s best estimate of the future outflow of economic resources that will be required in respect of residential units when control over the property has been transferred to the customer, the estimated cost of which is accrued during the period of construction, upon sale of units and recognition of related revenue. Management estimates the related provision for future defect liability claims based on historical cost of rectifications and is adjusted regularly to reflect new information. The residential units are generally covered under the defect liability period limited to 5 years from the date when control over the property has been transferred to the customer.

Secured Borrowing

(a) Loan from Financial Institution carrying interest rate in the range of 8.85% p.a. to 9.35% p.a. (previous year 8.85% p.a.)

is secured by first charge on land and building and cashflows of identified Project.

Unsecured Borrowings

(a) The cash credit facility is carrying interest rate in the range of 7.65% p.a. to 8.95% p.a. (Previous Year 7.20% p.a. to 7.65% p.a.)

(b) Other loans from banks include short term loan carrying interest rate in the range of 4.50% p.a. to 8.90% p.a. (Previous Year 4.25% p.a. to 7.45% p.a.)

(1) Contract Balances

(a) Amounts received before the related performance obligation is satisfied are included in the balance sheet (Contract liability) as "Advances received from Customers” in note no. 22 - Other Current Liabilities. Amounts billed for development milestone achieved but not yet paid by the customer are included in the balance sheet under trade receivables in note no. 12.

(b) During the year, the Company recognised Revenue of '' 31,306.34 lakhs (31st March, 2022: '' 18,324.47 lakhs) from opening contract liability included in the balance sheet as "Advances received from Customers” in note no. 22 - Other Current Liabilities of '' 48,267.00 lakhs (1st April, 2021 : '' 32,450.05 lakhs).

(c) There were no significant changes in the composition of the contract liabilities and Trade receivable during the reporting period other than on account of periodic invoicing and revenue recognition.

(d) Amounts previously recorded as contract liabilities increased due to further milestone based invoices raised during the year and decreased due to revenue recognised during the year on completion of the construction.

(e) Amounts previously recorded as Trade receivables increased due to further milestone based invoices raised during the year and decreased due to collections during the year.

(f) There are no contract assets outstanding at the end of the year.

(g) The aggregate amount of the transaction price allocated to the performance obligations that are completely or partially unsatisfied as at 31st March, 2023, is '' 182,714 lakhs (31st March, 2022 : '' 117,160 lakhs). Out of this, the Company expects, based on current projections, to recognize revenue of around 19% (31st March, 2022 : 40%). within the next one year and the remaining thereafter. This includes contracts that can be terminated for convenience with a penalty as per the agreement since, based on current assessment, the occurrence of the same is expected to be remote.

Share based payment

The Company has granted options to its eligible employees under the Employee Stock Options Scheme 2006 ("ESOS 2006”) and the Employee Stock Options Scheme 2012 ("ESOS 2012). The options granted under both the schemes are equity settled. ESOS 2006:- Options granted under ESOS 2006 vest in 4 equal instalments of 25% each on expiry of 12 months, 24 months, 36 months and 48 months respectively from the date of grant. The options may be exercised on any day over a period of five years from the date of vesting.

ESOS 2012 (Options granted till 16th March, 2021):- Options granted under ESOS 2012 vest in 4 instalments bifurcated as 20% each on the expiry of 12 months and 24 months, 30% each on the expiry of 36 months and 48 months respectively from the date of grant. The options may be exercised on any day over a period of five years from the date of vesting.

ESOS 2012 (Options granted from 17th March, 2021):- Options granted under ESOS 2012 vest in 3 equal instalments of 33.33% each on expiry of 12 months, 24 months, and 36 months respectively from the date of grant. The options may be exercised within a period of five years from the date of grant

31 - Financial Instruments

Capital management

The Company’s capital management objectives are:

- safeguard its ability to continue as a going concern, so that it can continue to maximise the returns for shareholders and benefits for other stakeholders

- maintain an optimal capital structure to reduce the cost of capital

The Management of the Company monitors the capital structure using debt equity ratio which is determined as the proportion of total debt to total equity.

Financial Risk Management Framework

The Company’s activities expose it to a variety of financial risks: credit risk, liquidity risk and market risk. In order to manage the aforementioned risks, the Company operates a risk management policy and a program that performs close monitoring of and responding to each risk factor.

CREDIT RISK

(i) Credit risk management

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. Credit risk arises from trade receivables, cash and cash equivalents & other financial assets.

Trade Receivables

The Company’s trade receivables include receivables on sale of residential flats and rent receivable. As per the Company’s flat handover policy, a flat is handed over to a customer only upon payment of entire amount of consideration. The rent receivables are secured by security deposits obtained under the lease agreement. Thus, the Company is not exposed to any credit risk on receivables from sale of residential flats and rent receivables.

The concentration of credit risk is limited due to the fact that the customer base is large. The Company determines the allowance for expected credit losses based on historical loss experience adjusted to reflect current and estimated future economic conditions. Basis this assessment, the allowance for doubtful trade receivables as at March 31, 2023 is considered adequate.

Cash and Cash Equivalents & Other Financial Assets

For banks and financial institutions, only high rated banks/institutions are accepted. The Company holds cash and cash equivalents with bank and financial institution counterparties, which are having highest safety ratings based on ratings published by various credit rating agencies. The Company considers that its cash and cash equivalents have low credit risk based on external credit ratings of the counterparties.

For Other Financial Assets, the Company assesses and manages credit risk based on reasonable and supportive forward looking information. Other Financial Assets are considered to be low credit risk exposure assets.

LIQUIDITY RISK

(i) Liquidity risk management

Ultimate responsibility for liquidity risk management rests with the board of directors, which has established an appropriate liquidity risk management framework for the management of the Company’s short-term, medium-term and long-term funding and liquidity management requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

(ii) Maturities of financial liabilities

The following tables detail the Company’s remaining contractual maturity for its non-derivative financial liabilities with agreed repayment periods. The amount disclosed in the tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Company can be required to pay. The tables include both interest and principal cash flows.

MARKET RISK

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: currency risk, interest rate risk and other price risk such as equity price risk. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return. All such transactions are carried out within the guidelines set by the Board of Directors.

Future specific market movements cannot be normally predicted with reasonable accuracy.

(i) Currency Risk

Foreign currency risk is the risk that the fair value or the future cash flows of an exposure will fluctuate because of changes in the foreign exchange rate. The Company undertakes few transactions denominated in foreign currencies only for availing certain services. Hence Foreign currency risk is not significant in comparison to company’s operations.

(ii) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company’s exposure to the risk of changes in market interest rates relates primarily to the Company’s debt obligations with floating interest rates.The Company manages its interest rate risk by having a balanced portfolio of fixed and floating rate loans and borrowings.

33. Leases

As lessee

The Company has entered into operating lease arrangements for its registered office at Worli, Mumbai & Andheri regional office. The lease is non-cancellable for a period of 1 - 3 years and may be renewed based on mutual agreement between the parties. The leases have varying terms, escalation clauses and renewal rights. The Company has recognised right of use assets for these leases, except for short term leases.

34. Segment information

The reportable segments of the Company are ‘Projects, Project Management and Development’ and ‘Operating of Commercial Complexes’.

The segments are largely organised and managed separately according to the organisation structure that is designed based on the nature of business. Operating segments are reported in a manner consistent with the internal reporting provided to the Managing Director regarded as the Chief Operating Decision Maker ("CODM”).

Description of each of the reportable segments for all periods presented, is as under:

i) Projects, Project Management & Development: This Segment of the business includes income from sale of residential units across projects, project management and development in India.

ii) Operating of Commercial Complexes: This Segment of the business includes rental income from commercial properties at New Delhi

The CODM evaluates the Company’s performance and allocates resources based on an analysis of various performance indicators by operating segments. The CODM reviews revenue and gross profit as the performance indicator for all of the operating segments. The measurement of each segment’s revenues, expenses and assets is consistent with the accounting policies that are used in preparation of the financial statements. Segment profit represents the profit before interest and tax.

Revenue from type of products and services

The operating segments are primarily based on nature of products and services and hence the Revenue from external customers of each segment is representative of revenue based on products and services.

Geographical Information

The Company operates in one reportable geographical segment i.e. "Within India”. Hence, no separate geographical segment wise disclosure is applicable as per the requirements of Ind AS 108 Operating Segments.

Information about major customers

Revenues from transactions with a single external customer did not amount to 10 percent or more of the Company’s revenues from external customers.

Segment revenue reported above represents revenue generated from external customers. There were no inter-segment sales in the current year as well as previous year.

35. Employee benefits

(a) Defined Contribution Plan

The Company’s contribution to Provident Fund and Superannuation Fund aggregating '' 341.58 lakhs (31st March, 2022 : '' 242.48 lakhs) has been recognised in the Statement of Profit or Loss under the head Employee Benefits Expense.

(b) Defined Benefit Plans:

Gratuity

The Company operates a gratuity plan covering qualifying employees. The benefit payable is the greater of the amount calculated as per the Payment of Gratuity Act, 1972 or the Company scheme applicable to the employee. The benefit vests upon completion of five years of continuous service and once vested it is payable to employees on retirement or on termination of employment. In case of death while in service, the gratuity is payable irrespective of vesting. The Company makes contribution to the group gratuity scheme administered by the Life Insurance Corporation of India through its Gratuity Trust Fund.

Through its defined benefit plans the Company is exposed to a number of risks, the most significant of which are detailed below:

Investment risk

The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to market yields at the end of the reporting period on government bonds.

Interest risk

A decrease in the bond interest rate will increase the plan liability; however, this will be partially offset by an increase in the return on the plan’s debt investments.

Longevity risk

The present value of defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants both during and after their employment. An increase in the life expectancy of the plan participants will increase the plan’s liability.

Salary risk

The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the plan’s liability.

Terms and conditions of transactions with related parties

The transactions with related parties are made on terms equivalent to those that prevail in arm’s length transactions. Outstanding balances at the year-end are unsecured and settlement occurs in cash. There have been no guarantees provided or received for any related party receivables or payables.

37 Contingent liabilities

('' in Lakhs)

Particulars

As at

31st March, 2023

As at

31st March, 2022

(a) Claims against the Group not acknowledged as debt*

(i) Demand from a local authority for energy dues, project related approval and works which is disputed by the Company

1,863.00

2,164.04

(ii) Claim from welfare association in connection with project work, disputed by the Company

4,550.00

4,550.00

(iii) Cases filed by parties in the Consumer forum including RERA and Civil Courts disputed by the Company as advised by advocates.

1,515.00

-

(b) Income Tax Matter under appeal

In respect of certain business incomes re-classified by the Income tax Department as income from house property and other disallowances, the Company has partially succeeded in appeal and is pursuing the matter further with the appropriate appellate authorities

301.98

301.98

(c) Indirect Tax Matters under appeal

VAT, Service Tax and Entry Tax claims disputed by the Company relating to issues of applicability and interest on demand. The Company is pursuing the matter with the appropriate Appellate Authorities.

896.15

1,167.59

*In the opinion of the management the above claims are not sustainable and the Company does not expect any outflow of economic resources in respect of above claims and therefore no provision is made in respect thereof

38. Commitments

('' in Lakhs)

Particulars

As at

31st March, 2023

As at

31st March, 2022

(a) Capital Commitments : Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances)

67.46

72.92

(b) Other Commitment : Commitment for investment in equity shares of an Associate Company

4,861.65

-

42. Other statutory information

a) Security of current assets against borrowings

The Company has not been sanctioned working capital limits in excess of '' 5 crores, in aggregate, at points of time during the year, from banks or financial institutions on the basis of security of current assets. However, the quarterly returns or statements comprising quarterly financial results are not filed by the Company to such bank or financial institution as these are published financial results and are available on the Company’s website for public including such banks or financial institutions. These quarterly financial results are in agreement with the unaudited books of account of the Company of the respective quarters.

b) The Company do not have any benami property, where any proceeding has been initiated on or are pending against the Company for holding benami property.

c) Transactions with struck off companies

During the year ended 31st March 2023, the Company has entered in to a transaction with an unrelated party Digipace Consulting (OPC) Private Limited towards brokerage services for an amount of '' 4.67 lakhs and closing payable balance was NIL as on 31st March 2023.

d) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the group (Ultimate Beneficiaries) or provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.

The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the group shall directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or provide any guarantee, security or the like on behalf of the ultimate beneficiaries.

e) Undisclosed income

There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the Income Tax Act, 1961, that has not been recorded in the books of account.

f) Details of crypto currency or virtual currency

The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.

g) Registration of Charges or satisfaction with Registrar of Companies (ROC)

There are no charges or satisfaction which are yet to be registered with the Registrar of Companies beyond the statutory period

43. The Board of Directors of the Company has recommended a dividend of '' 2.30 per share on Equity Share of '' 10 each (23%) (31st March, 2022: '' 2.00 per share - 20%) subject to approval of members of the Company at the forthcoming Annual General Meeting.

44. Events after the reporting period

No material events have occurred after the Balance Sheet date and upto the approval of the financial statements.

45. Previous Year Figures

The figures for previous year have been regrouped wherever necessary to confirm to current year’s grouping


Mar 31, 2022

a. During the year ended 31st March, 2021, the Company had opted to convert its investment in 2,637 11% Optionally Convertible Debentures (OCDs) of the face value of ? 1.00 lakh each and interest receivable of ? 518.21 lakhs in Knowledge Township Limited and has received 2,80,71,664 fully paid up equity shares of the face value of ? 10 each as per the terms of Debenture subscription agreement.

b. Pursuant to approval received from the Board of directors of the Company and Board of Directors of Mahindra Integrated Township Ltd. (MITL), Mahindra Residential Developers Ltd. (MRDL) and Mahindra World City Developers Ltd. (MWCDL) respectively for the Scheme of Amalgamation of MITL and MRDL with MWCDL, an application under Section 230 to 232 of the Companies Act, 2013 has been filed with National Company Law Tribunal, Chennai on 24th December, 2021.

c. The company has received ? 5,505.38 Lakhs as a consideration for buy back of 18,900 Class C equity shares from Joint Venture Company viz Mahindra Homes Private Limited (MHPL). The transaction was completed on 24th December, 2021.

Exceptional Item:

d. Mahindra Homes Private Limited (MHPL), a Joint Venture of the Company, is executing residential projects at NCR and Bengaluru. The residential project in NCR is a Joint Development with the land owner. During the year MHPL saw significant increase in sales with improvement in selling price, volumes and collections from the projects and there was a buy back of its Class C equity shares. Pursuant to above, the Company has evaluated the carrying value of its investment and on the basis of estimated Net Present Value of forecasted cash flows expected to be generated by MHPL, reversed an impairment loss of? 10,412.23 Lakhs (31st March, 2021: NIL)”

e. During the year company has sold the investment in equity shares & 0.0001% Cumulative Compulsorily Convertible Preference Shares in Urban Stay Technologies Private Limited for ? 0.45 lakhs basis the fair valuation of the entity

f. During the year company has redeemed the investment in 15% Optionally Convertible Redeemable Debentures in Mahindra Happinest Developers Limited for ? 1482.96 lakhs basis the fair valuation of the entity,

# Other Advances mainly includes Land Advances , Employees advance and Project Advances given to vendors.

Advance given to employees as per the Company’s policy are not considered for the purposes of disclosure under section 186(4) of the Companies Act, 2013.

* The Company had entered into an agreement to acquire a parcel of land near Thane, Maharashtra, at a consideration of Rs 2,000.00 lakhs. While full consideration was paid, the land was not conveyed pending completion of certain formalities. The Company has incurred additonal cost of '' 2367.65 lakhs towards liasoning and other related costs upto 31st March 2022 ('' 1,530.54 lakhs upto 31st March 2021) which has been included in inventories as construction work in progress in note no. 11. Tahsildar (Thane) has issued an order against the registered owner alleging non-adherence of certain conditions pertaining to Bombay Tenancy and Agricultural Lands Act, 1948 and changed the land records to reflect Government of Maharashtra as the holder of the land. The Company has been legally advised that the said order and the demand thereunder is grossly erroneous and not tenable. Accordingly, the Company has filed an appeal before Sub-Divisional Officer Thane (SDO). SDO after hearing and completing the process has issued an order dated 07th February, 2019 and set aside the order passed by Tahsildar (Thane) and has also directed Tahsildar (Thane) to delete the name of Government of Maharashtra from the land records of the aforesaid land.

Notes:

1. Based on projections and estimates by the Company of the expected revenues and costs to completion, provision for losses to completion and/ or write off of costs carried to inventory are made on projects where the expected revenues are lower than the estimated costs to completion. In the opinion of the management, the net realisable value of the construction work in progress will not be lower than the costs so included therein. The amount of inventories recognised as an expense of '' 22,340.49/- lakhs for the year ended 31st March, 2022.(31st March, 2021: '' 8,042.60 lakhs) include 31st March, 2022: '' NIL (31st March, 2021: '' NIL) in respect of write down of inventory to net realisable value.

2. The Company has availed cash credit facilities and short term loans, which are secured by hypothecation of inventories.

3. The Company had purchased land parcel at Alibaug and two GAT Numbers (1755 and 1756) out of this land parcel have been attached by Income Tax department by serving order of attachment dated 31st July 2017 on one of the erstwhile land owners in lieu of recovery proceedings of tax dues of '' 5,988.00 lakhs payable towards Income Tax department. The Company had lodged objections to the attachment of these two GAT Numbers with Income Tax Department. During the year ended 31st March, 2021, based on the letter dated 16th February, 2021 received by the Company from Deputy Commissioner of Income Tax, the erstwhile land owner’s income tax liability stands at '' 24.33 lakhs. There is no change in the wealth tax liability of '' 6.06 lakhs. During the current year, attachment of above mentioned GAT Nos were released by the Tax Recovery Officer, Thane.

Terms/ rights attached to equity shares with voting rights

The Company has only one class of equity shares having par value of '' 10 per share. Each holder of equity shares is entitled to one vote per share and carry a right to dividends. The company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in ensuing Annual General Meeting.

(iv) Shares reserved for issue under options

The Company has 1,250,720 (Previous Year 548,504) equity shares of '' 10/- each reserved for issue under options [Refer Note 26].

(v) The allotment of 153,189 (Previous Year 51,063) equity shares of the Company has been kept in abeyance in accordance with Section 206A of the Companies Act, 1956 (Section 126 of the Companies Act 2013), till such time the title of the bonafide owner of the shares is certified by the concerned Stock Exchange or the Special Court (Trial of Offences relating to Transactions in Securities).

Description of the nature and purpose of Other Equity:

General Reserve: The general reserve is used from time to time to transfer profits from retained earnings for appropriation purposes. There is no policy of regular transfer. Items included under General Reserve shall not be reclassified back into the Profit and Loss.

Securities Premium: The Securities Premium is created on issue of shares at a premium.

Share Option Outstanding Account: The Share Options Outstanding Account represents reserve in respect of equity settled share options granted to the Company’s employees in pursuance of the Employee Stock Option Plan.

Retained Earnings: This reserve represents cumulative profits of the Company and effects of remeasurement of defined benefit obligations. This reserve can be utilised in accordance with the provisions of Companies Act, 2013.

Capital Redemption Reserve: The Capital Redemption Reserve was created against redemption of Preference Shares.

Share Application Money Pending allotment- This represents share application money received from the eligible employees upon exercise of employee stock option. The same will be transferred to equity share capital account after the allotment of shares to the applicants. The share application money pending allotment of '' 0.75 lakhs pertaining to previous year has been transferred to equity share capital during the year upon allotment of shares.

Defect Liability Provisions:

Provision for defect liability represents present value of management’s best estimate of the future outflow of economic resources that will be required in respect of residential units when control over the property has been transferred to the customer, the estimated cost of which is accrued during the period of construction, upon sale of units and recognition of related revenue. Management estimates the related provision for future defect liability claims based on historical cost of rectifications and is adjusted regularly to reflect new information. The residential units are generally covered under a the defect liability period limited to 5 years from the date when control over the property has been transferred to the customer.

Secured Borrowing

(a) The cash credit facility carrying interest rate was 7.65% p.a. (Previous Year in the range of 7.65% p.a. to 8.65% p.a) is secured by first charge on all existing and future current assets excluding land and immovable properties.

(b) Other loan from Financial Institution carrying interest rate is 8.85% p.a. (previous year 8.85% p.a. to 9.10% p.a.) is secured by first charge on land and building and cashflows of identified Project.

Unsecured Borrowings

(a) The cash credit facility is carrying interest rate in the range of 7.20% p.a. to 7.65% p.a. (Previous Year 7.35% p.a. to 8.20% p.a.)

(b) Other loans from banks include short term loan carrying interest rate in the range of 4.25% p.a. to 7.45% p.a. (Previous Year 4.25% p.a. to 7.40% p.a.)

(1) Contract Balances

(a) Amounts received before the related performance obligation is satisfied are included in the balance sheet (Contract liability) as "Advances received from Customers” in note no. 22 - Other Current Liabilities. Amounts billed for development milestone achieved but not yet paid by the customer are included in the balance sheet under trade receivables in note no. 12.

(b) During the year, the Company recognised Revenue of '' 18,324.47 lakhs (31st March, 2021: '' 3,489.49 lakhs) from opening contract liability included in the balance sheet as "Advances received from Customers” in note no. 22 -Other Current Liabilities of '' 32,450.05 lakhs (1st April, 2020 : '' 22,490.89 lakhs).

(c) There were no significant changes in the composition of the contract liabilities and Trade receivable during the reporting period other than on account of periodic invoicing and revenue recognition.

(d) Amounts previously recorded as contract liabilities increased due to further milestone based invoices raised during the year and decreased due to revenue recognised during the year on completion of the construction.

(e) Amounts previously recorded as Trade receivables increased due to further milestone based invoices raised during the year and decreased due to collections during the year.

(f) There are no contract assets outstanding at the end of the year.

(g) The aggregate amount of the transaction price allocated to the performance obligations that are completely or partially unsatisfied as at 31st March, 2022, is '' 117,160 lakhs (31st March, 2021 : '' 82,432.55 lakhs). Out of this, the Company expects, based on current projections, to recognize revenue of around 40% within the next one year and the remaining thereafter. This includes contracts that can be terminated for convenience with a penalty as per the agreement since, based on current assessment, the occurrence of the same is expected to be remote.

(a) The Company incurs commissions that are incremental costs of obtaining a contract with a customer. Under Ind AS 115, the Company recognises the incremental costs of obtaining a contract as assets under Prepaid Expenses under note no. 10 - Other Assets and amortises it upon completion of the related property sale contract.

(b) For the year ended 31st March 2022 amortisation amounting to '' 581.00 lakhs (31st March 2021: '' 89.14 lakhs) was recognised as Brokerage cost in note no. 25 - Cost of Sales. There were no impairment loss in relation to the costs capitalised.

Share based payment

The Company has granted options to its eligible employees under the Employee Stock Options Scheme 2006 ("ESOS 2006”) and the Employee Stock Options Scheme 2012 ("ESOS 2012). The options granted under both the schemes are equity settled.

ESOS 2006:- Options granted under ESOS 2006 vest in 4 equal instalments of 25% each on expiry of 12 months, 24 months, 36 months and 48 months respectively from the date of grant. The options may be exercised on any day over a period of five years from the date of vesting.

ESOS 2012 (Options granted till 16th March, 2021):- Options granted under ESOS 2012 vest in 4 instalments bifurcated as 20% each on the expiry of 12 months and 24 months, 30% each on the expiry of 36 months and 48 months respectively from the date of grant. The options may be exercised on any day over a period of five years from the date of vesting.

ESOS 2012 (Options granted from 17th March, 2021):- Options granted under ESOS 2012 vest in 3 equal instalments of 33.33% each on expiry of 12 months, 24 months, and 36 months respectively from the date of grant. The options may be exercised within a period of five years from the date of grant.

Pursuant to issue of Bonus Shares (refer note 16) during the current year Earning per share (Basic and Diluted) have been adjusted for the period presented.

31 - Financial Instruments

Capital management

The Company’s capital management objectives are:

- safeguard its ability to continue as a going concern, so that it can continue to maximise the returns for shareholders and benefits for other stakeholders

- maintain an optimal capital structure to reduce the cost of capital.

Financial Risk Management Framework

The Company’s activities expose it to a variety of financial risks: credit risk, liquidity risk and market risk. In order to manage the aforementioned risks, the Company operates a risk management policy and a program that performs close monitoring of and responding to each risk factor.

CREDIT RISK

(i) Credit risk management

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. Credit risk arises from trade receivables, cash and cash equivalents & other financial assets.

Trade Receivables

The Company’s trade receivables include receivables on sale of residential flats and rent receivable. As per the Company’s flat handover policy, a flat is handed over to a customer only upon payment of entire amount of consideration. The rent receivables are secured by security deposits obtained under the lease agreement. Thus, the Company is not exposed to any credit risk on receivables from sale of residential flats and rent receivables.

Cash and Cash Equivalents & Other Financial Assets

For banks and financial institutions, only high rated banks/institutions are accepted. The Company holds cash and cash equivalents with bank and financial institution counterparties, which are having highest safety ratings based on ratings published by various credit rating agencies. The Company considers that its cash and cash equivalents have low credit risk based on external credit ratings of the counterparties.

For Other Financial Assets, the Company assesses and manages credit risk based on reasonable and supportive forward looking information. Other Financial Assets are considered to be low credit risk exposure assets.

LIQUIDITY RISK

(i) Liquidity risk management

Ultimate responsibility for liquidity risk management rests with the board of directors, which has established an appropriate liquidity risk management framework for the management of the Company’s short-term, medium-term and long-term funding and liquidity management requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

(ii) Maturities of financial liabilities

The following tables detail the Company’s remaining contractual maturity for its non-derivative financial liabilities with agreed repayment periods. The amount disclosed in the tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Company can be required to pay. The tables include both interest and principal cash flows.

MARKET RISK

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: currency risk, interest rate risk and other price risk such as equity price risk. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return. All such transactions are carried out within the guidelines set by the Board of Directors.

(i) Currency Risk

Foreign currency risk is the risk that the fair value or the future cash flows of an exposure will fluctuate because of changes in the foreign exchange rate. The Company undertakes few transactions denominated in foreign currencies only for availing certain services. Hence Foreign currency risk is not significant in comparision to company’s operations.

(ii) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company’s exposure to the risk of changes in market interest rates relates primarily to the Company’s long-term debt obligations with floating interest rates.The Company manages its interest rate risk by having a balanced portfolio of fixed and floating rate loans and borrowings.

(iii) Interest rate sensitivity

The following table demonstrates the sensitivity to a reasonably possible change in interest rates on that portion of loans and borrowings affected. With all other variables held constant, the Company’s profit before tax is affected through the impact on floating rate borrowings, as follows:

34. Segment information

The reportable segments of the Company are ‘Projects, Project Management and Development’ and ‘Operating of Commercial Complexes’.

The segments are largely organised and managed separately according to the organisation structure that is designed based on the nature of business. Operating segments are reported in a manner consistent with the internal reporting provided to the Managing Director regarded as the Chief Operating Decision Maker ("CODM”).

Description of each of the reportable segments for all periods presented, is as under:

i) Projects, Project Management & Development: This Segment of the business includes income from sale of residential units across projects, project management and development in India.

ii) Operating of Commercial Complexes: This Segment of the business includes rental income from commercial properties at New Delhi

The CODM evaluates the Company’s performance and allocates resources based on an analysis of various performance indicators by operating segments. The CODM reviews revenue and gross profit as the performance indicator for all of the operating segments. The measurement of each segment’s revenues, expenses and assets is consistent with the accounting policies that are used in preparation of the financial statements. Segment profit represents the profit before interest and tax.

Revenue from type of products and services

The operating segments are primarily based on nature of products and services and hence the Revenue from external customers of each segment is representative of revenue based on products and services.

Geographical Information

The Company operates in one reportable geographical segment i.e. “Within India”. Hence, no separate geographical segment wise disclosure is applicable as per the requirements of Ind AS 108 Operating Segments.

Information about major customers

Revenues from transactions with a single external customer did not amount to 10 percent or more of the Company''s revenues from external customers.

Segment revenue reported above represents revenue generated from external customers. There were no intersegment sales in the current year as well as previous year.

35. Employee benefits

(a) Defined Contribution Plan

The Company''s contribution to Provident Fund and Superannuation Fund aggregating '' 242.48 lakhs (31st March, 2021 : '' 292.74 lakhs) has been recognised in the Statement of Profit or Loss under the head Employee Benefits Expense.

(b) Defined Benefit Plans:

Gratuity

The Company operates a gratuity plan covering qualifying employees. The benefit payable is the greater of the amount calculated as per the Payment of Gratuity Act, 1972 or the Company scheme applicable to the employee. The benefit vests upon completion of five years of continuous service and once vested it is payable to employees on retirement or on termination of employment. In case of death while in service, the gratuity is payable irrespective of vesting. The Company makes contribution to the group gratuity scheme administered by the Life Insurance Corporation of India through its Gratuity Trust Fund.

Through its defined benefit plans the Company is exposed to a number of risks, the most significant of which are detailed below:

Investment risk

The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to market yields at the end of the reporting period on government bonds.

Interest risk

A decrease in the bond interest rate will increase the plan liability; however, this will be partially offset by an increase in the return on the plan''s debt investments.

Longevity risk

The present value of defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants both during and after their employment. An increase in the life expectancy of the plan participants will increase the plan''s liability.

Salary risk

The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the plan''s liability.

The above sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. In practice this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the defined benefit liability recognised in the Balance sheet.

The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to previous year.

The Company expects to contribute '' NIL lakhs (31st March, 2021 '' 39.79 Lakhs) to the gratuity trusts during the next financial year.

Terms and conditions of transactions with related parties

The transactions with related parties are made on terms equivalent to those that prevail in arm’s length transactions. Outstanding balances at the year-end are unsecured and settlement occurs in cash. There have been no guarantees provided or received for any related party receivables or payables.

37 Contingent liabilities

('' in Lakhs)

Particulars

As at

31st March, 2022

As at

31st March, 2021

(a) Claims against the Company not acknowledged as debt*

(i) Demand from a local authority for energy dues disputed by the Company.

2,164.04

2,164.04

(ii) Claim from welfare association in connection with project work, disputed by the Company.

4,550.00

4,500.00

(b) Income Tax Matter under appeal

In respect of certain business incomes re-classified by the Income tax Department as income from house property and other disallowances, the Company has partially succeeded in appeal and is pursuing the matter further with the appropriate appellate authorities.

301.98

301.92

(c) Indirect Tax Matters under appeal

VAT, Service Tax and Entry Tax claims disputed by the Company relating to issues of applicability and interest on demand. The Company is pursuing the matter with the appropriate Appellate Authorities.

1,167.59

1,069.41

*In the opinion of the management the above claims are not sustainable and the Company does not expect any outflow of economic resources in respect of above claims and therefore no provision is made in respect thereof

38. Capital Commitments

('' in Lakhs)

Particulars

As at

31st March, 2022

As at

31st March, 2021

Capital Commitment : Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances)

72.92

43.32

39. Impact of COVID-19 (Global Pandemic)

The Management has made an assessment of the impact of COVID-19 on the Company’s operations, financial performance and position for the year ended 31st March 2022, and has concluded that the impact was primarily on the operational aspects of the business during the initial months of the year ended 31st March 2022. The Company has used the principles of prudence in applying judgments, estimates and assumptions based on current assessments and do not foresee any significant impact of Covid-19 on the operations. In assessing the recoverability of assets such as inventories, financial assets and other assets, based on current indicators of future economic conditions, the Company expects to recover the carrying amounts of its assets.

41. Recent Indian Accounting Standards (Ind AS)

Ministry of Corporate Affairs ("MCA”) notifies new standard or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. On March 23, 2022, MCA amended the Companies (Indian Accounting Standards) Amendment Rules, 2022, applicable from April 1st, 2022, as below:

Ind AS 16 - Proceeds before intended use

The amendment clarifies that excess of net sale proceeds of items produced over the cost of testing, if any, shall not be recognized in the profit or loss but deducted from the directly attributable costs considered as part of cost of an item of property, plant and equipment. The Company does not expect the amendment to have any impact in its recognition of its property, plant and equipment in its financial statements.

Ind AS 37 - Onerous Contracts - Costs of Fulfilling a Contract

The amendments specify that the ‘cost of fulfilling’ a contract comprises the ‘costs that relate directly to the contract’. Costs that relate directly to a contract can either be incremental costs of fulfilling that contract (examples would be direct labour, materials) or an allocation of other costs that relate directly to fulfilling contracts. The amendment is essentially a clarification and the Company does not expect the amendment to have any significant impact in its financial statements.

Ind AS 103 - Reference to Conceptual Framework

The amendments specify that to qualify for recognition as part of applying the acquisition method, the identifiable assets acquired and liabilities assumed must meet the definitions of assets and liabilities in the Conceptual Framework for Financial Reporting under Indian Accounting Standards (Conceptual Framework) issued by the Institute of Chartered Accountants of India at the acquisition date. These changes do not significantly change the requirements of Ind AS 103. The Company does not expect the amendment to have any significant impact in its financial statements.

Ind AS 109 - Annual Improvements to Ind AS (2021)

The amendment clarifies which fees an entity includes when it applies the ‘10 percent’ test of Ind AS 109 in assessing whether to derecognise a financial liability. The Company does not expect the amendment to have any significant impact in its financial statements.

42. Expenditure on Corporate Social Responsibility (CSR)

a) Gross Amount required to be spent by the Company for the year ended 31st March, 2022 (as certified by the Company) : '' NIL Lakhs (Previous Year '' 70.72 Lakhs)

43. Input Tax Credit (ITC) benefits to the customers

Revenue from operations for the year ended 31st March, 2022 is net of '' NIL (31st March, 2021. '' 13.44 lakhs) towards input tax credit benefits passed on to the customers as per the provisions of section 171 on Anti-Profiteering of CGST Act, 2017. The treatment is as per the prevailing Indian Accounting Standards.

45. Other statutory information

a) Security of current assets against borrowings

The Company has been sanctioned working capital limits in excess of '' 5 crores, in aggregate, at points of time during the year, from banks or financial institutions on the basis of security of current assets. However, the quarterly returns or statements comprising quarterly financial results are not filed by the Company to such bank or financial institution as these are published financial results and are available on the Company’s website for public including such banks or financial institutions. These quarterly financial results are in agreement with the unaudited books of account of the Company of the respective quarters.

b) The Company do not have any benami property, where any proceeding has been initiated on or are pending against the Company for holding benami property.

c) Relationship with struck off companies

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

d) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the group (Ultimate Beneficiaries) or provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.

The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the group shall directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or provide any guarantee, security or the like on behalf of the ultimate beneficiaries.

e) Undisclosed income

There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the Income Tax Act, 1961, that has not been recorded in the books of account.

f) Details of crypto currency or virtual currency

The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.

g) Registration of Charges or satisfaction with Registrar of Companies (ROC)

There are no charges or satisfaction which are yet to be registered with the Registrar of Companies beyond the statutory period.

46 The Board has recommended a dividend of '' 2 per share on Equity Share of '' 10 each (20%) subject to approval of members of the company at the forthcoming Annual General Meeting.

47 Events after the reporting period

No material events have occurred after the Balance Sheet date and upto the approval of the financial statements.

48. Previous Year Figures

The figures for previous year have been regrouped wherever necessary to confirm to current year’s grouping.


Mar 31, 2019

1. General Information

Mahindra Lifespace Developers Limited (‘the Company’) is a limited company incorporated in India. The equity shares of the Company are listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) and its debentures are listed on BSE. Its parent and ultimate holding company is Mahindra & Mahindra Limited.

The addresses of its registered office and principal place of business are disclosed in the introduction to the annual report. The Company along with its subsidiary companies is engaged in the development of residential projects and large formats developments such as integrated cities and industrial clusters.

Fair value disclosure on Company’s investment properties

The Company’s investment property consist of a commercial property constructed on land taken on perpetual lease in India, Mahindra Towers at Delhi. Management determined that the investment properties consist of two classes of assets - office and retail - based on the nature, characteristics and risks of each property.

# The fair values of the Mahindra Towers at Delhi have been arrived at on the basis of a valuation carried out as on 31st March, 2019 by Anarock Property Consultant Pvt. Ltd. and as on 31st March 2018 by Jones Lang Lasalle Property Consultant (India) Pvt. Ltd., independent valuers not related to the Company. Anarock Property Consultant Pvt. Ltd. and Jones Lang Lasalle Property Consultant (India) Pvt. Ltd. are registered with the authority which governs the valuers in India and they have appropriate qualifications and experience in the valuation of properties in the relevant locations. The Fair value was determined using the market comparable approach based on recent market prices without any significant adjustments being made to the market observable data.

* During the previous year ended 31st March, 2018, the Company had sold its investment property GE Plaza at Pune.

Notes:

2. Based on projections and estimates by the Company of the expected revenues and costs to completion, provision for losses to completion and/ or write off of costs carried to inventory are made on projects where the expected revenues are lower than the estimated costs to completion. In the opinion of the management, the net realisable value of the construction work in progress will not be lower than the costs so included therein. The amount of inventories recognised as an expense of Rs. 33,283.67 lakhs (31st March, 2018: Rs. 32,441.65 lakhs) include 31st March, 2019: Rs. 5.34 Lakhs (31st March, 2018: Rs. 1,190.14 lakhs) in respect of write down of inventory to net realisable value.

3. The Company has availed cash credit facilities, short term loans and borrowed through Non-Convertible Debentures, which are secured by hypothecation of inventories.

4. The Company had purchased land parcel at Alibaug and two GAT Numbers (1755 and 1756) out of this land parcel have been attached by Income Tax department by serving order of attachment dated 31st July 2017 on one of the erstwhile land owners in lieu of recovery proceedings of income tax dues of Rs. 5,988.00 lakhs payable towards Income Tax department. The Company has lodged objections to the attachment of these two GAT Numbers with Income Tax Department and pursuing the matter.

*The Company had entered into an agreement to acquire a parcel of land near Thane, Maharashtra, at a consideration of Rs. 2,000.00 lakhs. While full consideration was paid, the land was not conveyed pending completion of certain formalities. The amount currently standing in the books as a current asset is Rs. 2,879 lakh. Tahsildar (Thane) has issued an order against the registered owner alleging non-adherence of certain conditions pertaining to Bombay Tenancy and Agricultural Lands Act, 1948 and changed the land records to reflect Government of Maharashtra as the holder of the land. The Company has been legally advised that the said order and the demand thereunder is grossly erroneous and not tenable. Accordingly, the Company has filed an appeal before Sub-Divisional Officer Thane (SDO). SDO after hearing and completing the process has issued an order dated 07th February, 2019 and set aside the order passed by Tahsildar (Thane) and has also directed Tahsildar (Thane) to delete the name of Government of Maharashtra from the land records of the aforesaid land.

Terms/rights attached to equity shares with voting rights

The Company has only one class of equity shares having par value of Rs. 10 per share. Each holder of equity shares is entitled to one vote per share and carry a right to dividends. The company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in ensuing Annual General Meeting.

The Company has 96,850 (Previous Year 1,17,000) equity shares of Rs. 10/- each reserved for issue under options [Refer Note 25].

v) The allotment of 51,063 (Previous Year 51,063) equity shares of the Company has been kept in abeyance in accordance with Section 206A of the Companies Act, 1956 (Section 126 of the Companies Act 2013), till such time the title of the bonafide owner of the shares is certified by the concerned Stock Exchange or the Special Court (Trial of Offences relating to Transactions in Securities).

vi) The Board of Directors had at its meeting held on 27th October, 2016, approved Rights Issue upto an amount of Rs. 30,000 lakhs. During the previous year ended 31st March, 2018, the Company completed the Rights Issue by allotting on 5th May, 2017, 10,263,388 equity shares at a price of Rs. 292 (including face value of Rs. 10 each) per equity share aggregating Rs. 29,969 lakhs in the ratio of 1 (one) Right Equity Share for every 4 (four) fully paid-up equity shares of the Company held by the Equity Shareholders on the Record Date i.e. 31st March, 2017. The Rights Issue was subscribed 129.18 percent of the Issue size in terms of number of equity shares applied. Consequently, the paid up equity share capital of the Company had increased to Rs. 5,132 lakhs divided into 5,13,18,988 equity shares of Rs. 10 each. The Securities Premium account had increased to Rs. 97,438 lakhs. The Rights Issue proceeds had been fully utilised for the purpose of the Issue.

Description of the nature and purpose of Other Equity:

General Reserve: The general reserve is used from time to time to transfer profits from retained earnings for appropriation purposes. There is no policy of regular transfer. Items included under General Reserve shall not be reclassified back into the P&L.

Securities Premium: The Securities Premium is created on issue of shares at a premium.

Share Options Outstanding Account: The Share Options Outstanding Account represents reserve in respect of equity settled share options granted to the Company’s employees in pursuance of the Employee Stock Option Plan.

Retained Earnings: This reserve represents cumulative profits of the Company and effects of remeasurement of defined benefit obligations. This reserve can be utilised in accordance with the provisions of Companies Act, 2013.

Capital Redemption Reserve: The Capital Redemption Reserve was created against redemption of Preference Shares.

Debenture Redemption Reserve: Debenture Redemption Reserve is a Statutory Reserve (as per Companies Act, 2013) created out of profits of the Company available for payment of dividend for the purpose of redemption of Debentures issued by the Company. On completion of redemption, the reserve is transferred to retained earnings.

Share Application Money Pending allotment- This represents share application money received from the eligible employees upon exercise of employee stock option. The same will be transferred to equity share capital account after the allotment of shares to the applicants. The share application money pending allotment of Rs. 0.53 lakhs pertaining to previous year has been transferred to equity share capital during the year upon allotment of shares.

Defect Liability Provisions:

Provision for defect liability represents present value of management’s best estimate of the future outflow of economic resources that will be required in respect of residential units when control over the property has been transferred to the customer, the estimated cost of which is accrued during the period of construction, upon sale of units and recognition of related revenue. Management estimates the related provision for future defect liability claims based on historical cost of rectifications and is adjusted regularly to reflect new information. The residential units are generally covered under a the defect liability period limited to 5 year from the date when control over the property has been transferred to the customer.

Secured Borrowing

(a) The cash credit facility carrying interest rate in the range of 8.80% p.a. to 9.20% p.a. (Previous Year 8.70% p.a. to 8.85% p.a.) is secured by first charge on all existing and future current assets excluding land and immovable properties.

Unsecured Borrowings

(a) The cash credit facility is carrying interest rate in the range of 8.20% p.a. to 8.30% p.a. (Previous Year 8.20% p.a.)

(b) In the previous year, loans from related parties included inter company borrowings obtained at 7.50% p.a.

(c) Other loans from banks include short term loan carrying interest rate in the range of 8.05% p.a. to 8.80% p.a. (Previous Year 7.90% p.a. to 8.50% p.a.)

(d) In the previous year, loans from other parties included commercial papers issued for working capital purposes carrying interest rate of 7.35% p.a.

Trade Payables are payables in respect of the amount due on account of goods purchased or services received in the normal course of business.

*This information has been determined to the extent such parties have been identified on the basis of intimation received from the suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006. Based on the information available with the Company there are no dues outstanding in respect to Micro, Small and Medium Enterprises as of Balance Sheet Date.

Notes:

(1) Contract Balances

(a) Amounts received before the related performance obligation is satisfied are included in the balance sheet (Contract liability) as “Advances received from Customers” in note no. 21- Other Current Liabilities. Amounts billed for development milestone achieved but not yet paid by the customer are included in the balance sheet under trade receivables in note no. 11.

(b) During the year, the Company recognised Revenue of Rs. 14,925.36 lakhs from opening contract liability (after Ind AS 115 adoption) of Rs. 32,095.47 lakhs.

(c) There were no significant changes in the composition of the contract liabilities and Trade receivable during the reporting period other than on account of periodic invoicing and revenue recognition.

(d) Amounts previously recorded as contract liabilities increased due to further milestone based invoices raised during the year and decreased due to revenue recognised during the year on completion of the construction.

(e) Amounts previously recorded as Trade receivables increased due to further milestone based invoices raised during the year and decreased due to collections during the year.

(f) There are no contract assets outstanding at the end of the year.

(g) The aggregate amount of the transaction price allocated to the performance obligations that are completely or partially unsatisfied as at March 31, 2019, is Rs. 78,615.64 lakhs. Out of this, the Company expects, based on current projections, to recognize revenue of around 50% within the next one year and the remaining thereafter. This includes contracts that can be terminated for convenience with a penalty as per the agreement since, based on current assessment, the occurrence of the same is expected to be remote.

(a) The Company incurs commissions that are incremental costs of obtaining a contract with a customer. Previously, all such costs were expensed as and when incurred. Under Ind AS 115, the Company recognises the incremental costs of obtaining a contract as assets under Prepaid Expenses under note no. 13 - Other Assets and amortises it upon completion of the related property sale contract.

(b) For the year ended 31 March 2019, amortisation amounting to Rs. 375.97 lakhs was recognised as Brokerage cost in note no. 24 - Cost of Sales. There were no impairment loss in relation to the costs capitalised.

Share based payment

The Company has granted options to its eligible employees under the Employee Stock Options Scheme 2006 (“ESOS 2006”) and the Employee Stock Options Scheme 2012 (“ESOS 2012). The options granted under both the schemes are equity settled. Options granted vest in 4 instalments bifurcated as 20% each on the expiry of 12 months & 24 months, 30% each on the expiry of 36 months & 48 months respectively from the date of grant. The options may be exercised on any day over a period of five years from the date of vesting.

The other details of the schemes are summarised below:

Share Options outstanding at the end of the year

The share options outstanding at the end of the year had a range of exercise prices of Rs. 10 - Rs. 325 (as at March 31, 2018: Rs. 10 - Rs. 325), and weighted average remaining contractual life of 2135 days (as at March 31, 2018: 2115 days).

Diluted earnings per share

The diluted earnings per share has been computed by dividing the net profit after tax available for equity shareholders by the weighted average number of equity shares, after giving dilutive effect of the outstanding stock options for the respective periods.

5. - Impact of application of Ind AS 115 Revenue from Contracts with Customers

a) The Ministry of Corporate Affairs vide notification dated 28th March 2018 has made Ind AS 115 “Revenue from Contracts with Customers” (Ind AS 115) w.e.f. 1st April, 2018. The Company has applied the modified retrospective approach as per para C3(b) of Ind AS 115 to contracts that were not completed as on 1st April 2018 and the cumulative effect of applying this standard is recognised at the date of initial application i.e.1st April, 2018 in accordance with para C7 of Ind AS 115 as an adjustment to the opening balance of Retained Earnings, only to contracts that were not completed as at 1st April, 2018. The transitional adjustment of Rs. 7,958.14 lakhs (net of deferred tax) has been adjusted against opening Retained Earnings based on the requirements of the Ind AS 115 pertaining to recognition of revenue based on satisfaction of performance obligation (at a point in time).

(b) For sales of property under development that were recognised on the percentage-of-completion basis under the previous year accounting policy, the Company has determined that they generally do not meet the criteria for recognising revenue over time under Ind AS 115 owing to non-enforceable right to payment from Customer for performance completed to date and, therefore recognises revenue at a point in time.

(c) Refer note 2.4 - ‘‘Revenue recognition” under Significant accounting policies in the Annual report of the Company, for the revenue recognition policy prior to April 1, 2018.

(d) Due to the application of IND AS 115 for the full year ended March 31, 2019 Income from Projects as per note no. 22 is higher by Rs. 11,770.32 lakhs, Cost of Project as per note no. 24 is higher by Rs. 7,432.24 lakhs, Profit before Tax is higher by Rs. 4,338.08 lakhs, Tax expense as per note no. 28(a) is higher by Rs. 1,699.62 lakhs and Profit after tax is higher by Rs. 2,638.46 lakhs. The Basic and Diluted EPS as per note no. 29 is Rs. 11.41 and Rs. 11.39 per share instead of Rs. 6.27 and Rs. 6.26 per share. These changes are due to recognition of revenue based on satisfaction of performance obligation (at a point in time), as opposed to the previously permitted percentage of completion method. Accordingly, the comparatives have not been restated for the full year ended March 31, 2018 and hence not comparable.

(e) Due to the application of Ind AS 115, Construction Work-in-progress as per note no. 10 is higher by Rs. 34,644.03 lakhs, Deferred Tax Asset as per note no. 18 is higher by Rs. 1,806.71 lakhs, Prepaid Expenses as per note no. 13 is lower by Rs. 11,237.11 lakhs, Retained Earnings as per note no. 15 is lower by Rs. 6,408.33 lakhs and Advances received from customers as per note no. 21 is higher by Rs. 31,621.96 lakhs as at March 31, 2019.

(f) There has been no material impact on the Cash flows Statement as the Company continues to collects from its Customers based on payment plans. Additionally there is no material impact on Other Comprehensive Income on account of Ind AS 115 transition.

6 - Financial Instruments

Capital management

The Company’s capital management objectives are:

- safeguard its ability to continue as a going concern, so that it can continue to provide returns for shareholders and benefits for other stakeholders

- maintain an optimal capital structure to reduce the cost of capital

The Management of the Company monitors the capital structure using debt equity ratio which is determined as the proportion of total debt to total equity.

Financial Risk Management Framework

The Company’s activities expose it to a variety of financial risks: credit risk, liquidity risk and market risk. In order to manage the aforementioned risks, the Company operates a risk management policy and a program that performs close monitoring of and responding to each risk factor.

CREDIT RISK

(i) Credit risk management

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. Credit risk arises from trade receivables, cash and cash equivalents, mutual funds & other financial assets.

Trade Receivables:

The Company’s trade receivables include receivables on sale of residential flats and rent receivable. As per the Company’s flat handover policy, a flat is handed over to a customer only upon payment of entire amount of consideration. The rent receivables are secured by security deposits obtained under the lease agreement. Thus, the Company is not exposed to any credit risk on receivables from sale of residential flats and rent receivables.

Cash and Cash Equivalents, Mutual Funds & Other Financial Assets

For banks and financial institutions, only high rated banks/institutions are accepted. The Company holds cash and cash equivalents with bank and financial institution counterparties, which are having highest safety ratings based on ratings published by various credit rating agencies. The Company considers that its cash and cash equivalents have low credit risk based on external credit ratings of the counterparties.

The Company holds mutual funds with financial institution counterparties, which are having highest safety ratings based on ratings published by various credit rating agencies. The Company considers that its mutual funds have low credit risk based on external credit ratings of the counterparties.

For other financial assets, the Company assesses and manages credit risk based on reasonable and supportive forward looking information. The Company does not have significant credit risk exposure for these items.

LIQUIDITY RISK

(i) Liquidity risk management

Ultimate responsibility for liquidity risk management rests with the board of directors, which has established an appropriate liquidity risk management framework for the management of the Company’s short-term, medium-term and long-term funding and liquidity management requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

(ii) Maturities of financial liabilities

The following tables detail the Company’s remaining contractual maturity for its non-derivative financial liabilities with agreed repayment periods. The amount disclosed in the tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Company can be required to pay. The tables include both interest and principal cash flows.

MARKET RISK

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: currency risk, interest rate risk and other price risk such as equity price risk. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return. All such transactions are carried out within the guidelines set by the Board of Directors.

Currency Risk

Foreign currency risk is the risk that the fair value or the future cash flows of an exposure will fluctuate because of changes in the foreign exchange rate. The Company undertakes transactions denominated in foreign currencies only for the purchases of the components which are required to carry out the construction activities. The Company manages its foreign currency risk by forward contracts that are expected to occur within a maximum 12 month from the entering of a contract.

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company’s exposure to the risk of changes in market interest rates relates primarily to the Company’s long-term debt obligations with floating interest rates. The Company manages its interest rate risk by having a balanced portfolio of fixed and floating rate loans and borrowings.

Interest rate sensitivity

The following table demonstrates the sensitivity to a reasonably possible change in interest rates on that portion of loans and borrowings affected. With all other variables held constant, the Company’s profit before tax is affected through the impact on floating rate borrowings, as follows:

7 - Segment information

The reportable segments of the Company are ‘Projects, Project Management and Development’ and ‘Operating of Commercial Complexes’.

The segments are largely organised and managed separately according to the organisation structure that is designed based on the nature of business. Operating segments are reported in a manner consistent with the internal reporting provided to the Managing Director regarded as the Chief Operating Decision Maker (“CODM”).

Description of each of the reportable segments for all periods presented, is as under:

i) Projects, Project Management & Development: This Segment of the business includes income from sale of residential units across projects, project management and development in India.

ii) Operating of Commercial Complexes: This Segment of the business includes rental income from commercial properties at Gurgaon

The CODM evaluates the Company’s performance and allocates resources based on an analysis of various performance indicators by operating segments. The CODM reviews revenue and gross profit as the performance indicator for all of the operating segments. The measurement of each segment’s revenues, expenses and assets is consistent with the accounting policies that are used in preparation of the financial statements. Segment profit represents the profit before interest and tax.

Revenue from type of products and services

The operating segments are primarily based on nature of products and services and hence the Revenue from external customers of each segment is representative of revenue based on products and services.

Geographical Information

The Company operates in one reportable geographical segment i.e. “Within India”. Hence, no separate geographical segment wise disclosure is applicable as per the requirements of Ind AS 108 Operating Segments.

Information about major customers

During the year ended 31st March, 2019 and 2018 respectively, revenues from transactions with a single external customer did not amount to 10 percent or more of the Company’s revenues from external customers.

Segment revenue reported above represents revenue generated from external customers. There were no inter-segment sales in the current year as well as previous year.

8 - Employee benefits

(a) Defined Contribution Plan

The Company’s contribution to Provident Fund and Superannuation Fund aggregating Rs. 316.41 lakhs (31st March, 2018 : Rs. 304.63 lakhs) has been recognised in the Statement of Profit or Loss under the head Employee Benefits Expense.

(b) Defined Benefit Plans:

Gratuity

The Company operates a gratuity plan covering qualifying employees. The benefit payable is the greater of the amount calculated as per the Payment of Gratuity Act, 1972 or the Company scheme applicable to the employee. The benefit vests upon completion of five years of continuous service and once vested it is payable to employees on retirement or on termination of employment. In case of death while in service, the gratuity is payable irrespective of vesting. The Company makes annual contribution to the group gratuity scheme administered by the Life Insurance Corporation of India through its Gratuity Trust Fund.

Through its defined benefit plans the Company is exposed to a number of risks, the most significant of which are detailed below:

Investment risk

The present value of the defined benefit plan liability (denominated in Indian Rupee) is calculated using a discount rate which is determined by reference to market yields at the end of the reporting period on government bonds.

Interest risk

A decrease in the bond interest rate will increase the plan liability; however, this will be partially offset by an increase in the return on the plan’s debt investments.

Longevity risk

The present value of defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants both during and after their employment. An increase in the life expectancy of the plan participants will increase the plan’s liability.

Salary risk

The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the plan’s liability.

The significant actuarial assumptions used for the purposes of the actuarial valuations were as follows:

The above sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. In practice this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the defined benefit liability recognised in the Balance sheet.

The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to previous period.

The Company expects to contribute Rs. 91.04 lakhs (31st March, 2018 Rs. 97.96 Lakhs) to the gratuity trusts during the next financial year.

Terms and conditions of transactions with related parties

The transactions with related parties are made on terms equivalent to those that prevail in arm’s length transactions. Outstanding balances at the year-end are unsecured and settlement occurs in cash. There have been no guarantees provided or received for any related party receivables or payables.

9 - Additional Information to the Financial Statements Dividend

In respect of the current year, the directors proposed dividend of Rs. 6 per share be paid on equity shares on 22nd April, 2019. This equity dividend is subject to approval by shareholders at the Annual General Meeting and has not been included as a liability in these financial statements. The proposed equity dividend is payable to those shareholders whose names appear on Register of Members as on the book closure date. The total estimated equity dividend to be paid is Rs. 3,080.95 lakhs. The payment of this dividend is estimated to result in payment of dividend distribution tax of Rs. 633.41 lakhs @ 20.56% on the amount of dividends grossed up for the related dividend distribution tax.

10 - Recent Indian Accounting Standards (Ind AS)

IND AS 116 - Leases

On March 30, 2019, Ministry of Corporate Affairs has notified Ind AS 116, Leases. Ind AS 116 will replace the existing leases Standard, Ind AS 17 Leases, and related Interpretations. The Standard sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract i.e., the lessee and the lessor. Ind AS 116 introduces a single lessee accounting model and requires a lessee to recognize assets and liabilities for all leases with a term of more than twelve months, unless the underlying asset is of low value. Currently, operating lease expenses are charged to the statement of Profit & Loss. The Standard also contains enhanced disclosure requirements for lessees. Ind AS 116 substantially carries forward the lessor accounting requirements in Ind AS 17. The Company is currently assessing the impact of application of Ind AS 116 on Company’s financial statements.

Ind AS 12 Appendix C, Uncertainty over Income Tax Treatments :

On March 30, 2019, Ministry of Corporate Affairs has notified Ind AS 12 Appendix C, Uncertainty over Income Tax Treatments which is to be applied while performing the determination of taxable profit (or loss), tax bases, unused tax losses, unused tax credits and tax rates, when there is uncertainty over income tax treatments under Ind AS 12. According to the appendix, companies need to determine the probability of the relevant tax authority accepting each tax treatment, or group of tax treatments, that the companies have used or plan to use in their income tax filing which has to be considered to compute the most likely amount or the expected value of the tax treatment when determining taxable profit (tax loss), tax bases, unused tax losses, unused tax credits and tax rates. The standard permits two possible methods of transition - i) Full retrospective approach - Under this approach, Appendix C will be applied retrospectively to each prior reporting period presented in accordance with Ind AS 8 - Accounting Policies, Changes in Accounting Estimates and Errors, without using hindsight and ii) Retrospectively with cumulative effect of initially applying Appendix C recognized by adjusting equity on initial application, without adjusting comparatives. The effective date for adoption of Ind AS 12 Appendix C is annual periods beginning on or after April 1, 2019. The Company will adopt the standard on April 1, 2019 and has decided to adjust the cumulative effect in equity on the date of initial application i.e. April 1, 2019 without adjusting comparatives. The effect on adoption of Ind AS 12 Appendix C would be insignificant in the standalone financial statements.

Amendment to Ind AS 12 - Income taxes :

On March 30, 2019, Ministry of Corporate Affairs issued amendments to the guidance in Ind AS 12, ‘Income Taxes’, in connection with accounting for dividend distribution taxes.

The amendment clarifies that an entity shall recognise the income tax consequences of dividends in profit or loss, other comprehensive income or equity according to where the entity originally recognised those past transactions or events. Effective date for application of this amendment is annual period beginning on or after April 1, 2019. The Company is currently evaluating the effect of this amendment on the standalone financial statements.”

Amendment to Ind AS 19 - plan amendment, curtailment or settlement:

On March 30, 2019, Ministry of Corporate Affairs issued amendments to Ind AS 19, ‘Employee Benefits’, in connection with accounting for plan amendments, curtailments and settlements.

The amendments require an entity:

- to use updated assumptions to determine current service cost and net interest for the remainder of the period after a plan amendment, curtailment or settlement; and

- to recognise in profit or loss as part of past service cost, or a gain or loss on settlement, any reduction in a surplus, even if that surplus was not previously recognised because of the impact of the asset ceiling.

Effective date for application of this amendment is annual period beginning on or after April 1, 2019. The Company does not have any impact on account of this amendment.”

11. Input Tax Credit (ITC) benefits to the customers

Revenue from operations for the year ended 31st March, 2019 is net of Rs. 205.22 Lakhs (31st March, 2018 - Rs. 1,119 lakhs) towards input tax credit benefits passed on to the customers as per the provisions of section 171 on Anti-Profiteering of CGST Act, 2017. The treatment is as per the prevailing Indian Accounting Standards.

12. Events after the reporting period

No material events have occurred after the Balance Sheet date and upto the approval of the financial statements.

13. Previous Year Figures

The figures for previous year have been regrouped wherever necessary to confirm to current year’s grouping.


Mar 31, 2018

Fair value disclosure on Company’s investment properties

The Company’s investment property consist of a commercial property constructed on land taken on perpetual lease in India, Mahindra Towers at Delhi. Management determined that the investment properties consist of two classes of assets - office and retail - based on the nature, characteristics and risks of each property.

# The fair values of the Mahindra Tower at Delhi have been arrived at on the basis of a valuation carried out as on 31st March, 2018 by Jones Lang Lasalle Property Consultant (India) Pvt. Ltd. and as on 31st March 2017 by Gandhi & Associates, independent valuer not related to the Company. Jones Lang Lasalle Property Consultant (India) Pvt. Ltd. and Gandhi & Associates are registered with the authority which governs the valuers in India and they have appropriate qualifications and experience in the valuation of properties in the relevant locations. The Fair value was determined using the market comparable approach based on recent market prices without any significant adjustments being made to the market observable data.

*Construction Work-in-Progress represents materials at site and unbilled costs on the projects. Based on projections and estimates by the Company of the expected revenues and costs to completion, provision for losses to completion and/ or write off of costs carried to inventory are made on projects where the expected revenues are lower than the estimated costs to completion. In the opinion of the management, the net realisable value of the construction work in progress will not be lower than the costs so included therein.

a) The amount of inventories recognised as an expense Rs, 32,441.65 lakh (31st March, 2017: Rs, 52,343.58 lakh) include Rs, 1,190.14 lakh (31st March, 2017: Rs, Nil) in respect of write down of inventory to net realisable value.

b) The Company has availed cash credit facilities, short term loans and borrowed through Non-Convertible Debentures, which are secured by hypothecation of inventories.

*The Company had entered into an agreement to acquire a parcel of land near Thane, Maharashtra, at a consideration of Rs, 2,000.00 lakh. While full consideration was paid, the land was not conveyed pending completion of certain formalities. The amount currently standing in the books as a current assets is Rs, 2,879 lakh. Tahsildar (Thane) has issued an order against the registered owner alleging non-adherence of certain conditions pertaining to Bombay Tenancy and Agricultural Lands Act, 1948 and changed the land records to reflect Government of Maharashtra as the holder of the land. The Company has been legally advised that the said order and the demand thereunder is grossly erroneous and not tenable.

Terms/ rights attached to equity shares with voting rights

The Company has only one class of equity shares having par value of Rs, 10 per share. Each holder of equity shares is entitled to one vote per share and carry a right to dividends. The company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in ensuing Annual General Meeting.

iv) Shares reserved for issue under options

The Company has 1,17,000 (Previous Year 5,53,430) equity shares of Rs, 10/- each reserved for issue under options [Refer Note 26].

v) The allotment of 51,063* (Previous Year 40,851) equity shares of the Company has been kept in abeyance in accordance with Section 206A of the Companies Act, 1956 (Section 126 of the Companies Act 2013), till such time the title of the bonafide owner of the shares is certified by the concerned Stock Exchange or the Special Court (Trial of Offences relating to Transactions in Securities). *51,063 equity shares, includes 10,212 Rights Equity Shares which were issued during the year, pursuant to the Rights entitlement on 40,851 Equity Shares the allotment of which has been kept in abeyance as explained above.

vi) The Board of Directors had at its meeting held on 27th October, 2016, approved Rights Issue upto an amount of Rs, 30,000 lakh. During the year ended 31st March, 2018, the Company completed the Rights Issue by allotting on 5th May, 2017, 10,263,388 equity shares at a price of Rs, 292 (including face value of Rs, 10 each) per equity share aggregating Rs, 29,969 lakh in the ratio of 1 (one) Right Equity Share for every 4 (four) fully paid-up equity shares of the Company held by the Equity Shareholders on the Record Date i.e. 31st March, 2017. The Rights Issue was subscribed 129.18 percent of the Issue size in terms of number of equity shares applied. Consequently, the paid up equity share capital of the Company has increased to Rs, 5,132 lakh divided into 5,13,18,988 equity shares of Rs, 10 each. The Securities Premium account has increased to Rs, 97,438 lakh. The Rights Issue proceeds have been fully utilised for the purpose of the Issue.

Description of the nature and purpose of Other Equity:

General Reserve: The general reserve is used from time to time to transfer profits from retained earnings for appropriation purposes. There is no policy of regular transfer. Items included under General Reserve shall not be reclassified back into the P&L.

Securities Premium Account: The Securities Premium is created on issue of shares at a premium.

Share Option Outstanding Account: It is a part of the Shareholders equity and is transferred to Share Capital, Share Premium or General Reserves over the vesting period.

Retained Earnings: This reserve represents cumulative profits of the Company and effects of remeasurement of defined benefit obligations. This reserve can be utilised in accordance with the provisions of Companies Act, 2013.

Capital Redemption Reserve: The Capital Redemption Reserve was created against redemption of Preference Shares. Debenture Redemption Reserve: A debenture redemption reserve is a provision created against issue of debentures to protect investors against the possibility of default by the company.

Share Application Money Pending allotment- This represents share application money received from the elegible employees upon excercise of employee stock option. The same will be transferred to equity share capital account after the allotment of shares to the applicants. The share application money pending allotment of Rs, 0.08 lakh pertaining to previous year has been transferred to equity share capital during the year upon allotment of shares.

Proposed dividends on equity shares are subject to approval in annual general meeting and are not recognised as a liability (including Dividend Distribution Tax thereon) as at 31st March 2018 and 31st March 2017.

Defect Liability Provisions:

Provision for defect liability represents present value of management’s best estimate of the future outflow of economic resources that will be required in respect residential units given under perpetual lease, the estimated cost of which is accrued during the period of construction, upon sale of units and recognition of related revenue. Management estimates the related provision for future defect liability claims based on historical cost of rectifications and is adjusted regularly to reflect new information. The residential units are generally covered under the defect liability period limited to 5 year from the date of handover of residential units.

Financial Risk Management Framework

The Company’s activities expose it to a variety of financial risks: credit risk, liquidity risk and market risk . In order to manage the aforementioned risks, the Company operates a risk management policy and a program that performs close monitoring of and responding to each risk factor.

CREDIT RISK

(i) Credit risk management

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. Credit risk arises from trade receivables, cash and cash equivalents, mutual Funds & other financial assets.

Trade Receivables:

The Company’s trade receivables include receivables on sale of residential flats and rent receivable. As per the Company’s flat handover policy, a flat is handed over to a customer only upon payment of entire amount of consideration. The rent receivables are secured by security deposits obtained under the lease agreement. Thus, the Company is not exposed to any credit risk on receivables from sale of residential flats and rent receivables.

Cash and Cash Equivalents, Mutual Funds & Other Financial Assets

For banks and financial institutions, only high rated banks/institutions are accepted. The Company holds cash and cash equivalents with bank and financial institution counterparties, which are having highest safety ratings based on ratings published by various credit rating agencies. The Company considers that its cash and cash equivalents have low credit risk based on external credit ratings of the counterparties.

The Company holds mutual funds with financial institution counterparties, which are having highest safety ratings based on ratings published by various credit rating agencies. The Company considers that its mutual funds have low credit risk based on external credit ratings of the counterparties.

For other financial assets, the Company assesses and manages credit risk based on reasonable and supportive forward looking information. The Company does not have significant credit risk exposure for these items.

(i) Liquidity risk management

Ultimate responsibility for liquidity risk management rests with the board of directors, which has established an appropriate liquidity risk management framework for the management of the Company’s short-term, medium-term and long-term funding and liquidity management requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

(ii) Maturities of financial liabilities

The following tables detail the Company’s remaining contractual maturity for its non-derivative financial liabilities with agreed repayment periods. The amount disclosed in the tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Company can be required to pay. The tables include both interest and principal cash flows.

MARKET RISK

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: currency risk, interest rate risk and other price risk such as equity price risk. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return. All such transactions are carried out within the guidelines set by the Board of Directors.

Currency Risk

Foreign currency risk is the risk that the fair value or the future cash flows of an exposure will fluctuate because of changes in the foreign exchange rate. The Company undertakes transactions denominated in foreign currencies only for the purchases of the components which are required to carry out the construction activities. The Company manages its foreign currency risk by forward contracts that are expected to occur within a maximum 12 month from the entering of a contract.

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company’s exposure to the risk of changes in market interest rates relates primarily to the Company’s long-term debt obligations with floating interest rates. The Company manages its interest rate risk by having a balanced portfolio of fixed and floating rate loans and borrowings.

34 - Segment information

“The reportable segments of the Company are ‘Projects, Project Management and Development’ and ‘Operating of Commercial Complexes’. The segments are largely organised and managed separately according to the organisation structure that is designed based on the nature of business. Operating segments are reported in a manner consistent with the internal reporting provided to the Managing Director regarded as the Chief Operating Decision Maker (“CODM”).

Description of each of the reportable segments for all periods presented, is as under:

i) Projects, Project Management & Development: This Segment of the business includes income from sale of residential units across projects, project management and development in India.

ii) Operating of Commercial Complexes: This Segment of the business includes rental income from commercial properties at Gurgaon and Pune.

Revenue from type of products and services

The operating segments are primarily based on nature of products and services and hence the Revenue from external customers of each segment is representative of revenue based on products and services.

Geographical Information

The Company operates in one reportable geographical segment i.e. “Within India”. Hence, no separate geographical segment wise disclosure is applicable as per the requirements of Ind AS 108 Operating Segments.

Information about major customers

During the year ended 31st March, 2018 and 2017 respectively, revenues from transactions with a single external customer did not amount to 10 percent or more of the Company’s revenues from external customers.

Segment revenue reported above represents revenue generated from external customers. There were no inter-segment sales in the current year as well as previous year.

35 - Employee benefits

(a) Defined Contribution Plan

The Company’s contribution to Provident Fund and Superannuation Fund aggregating Rs, 304.63 lakh (31st March, 2017 : Rs, 347.56 lakh) has been recognised in the Statement of Profit or Loss under the head Employee Benefits Expense.

(b) Defined Benefit Plans:

Gratuity

The Company operates a gratuity plan covering qualifying employees. The benefit payable is the greater of the amount calculated as per the Payment of Gratuity Act, 1972 or the Company scheme applicable to the employee. The benefit vests upon completion of five years of continuous service and once vested it is payable to employees on retirement or on termination of employment. In case of death while in service, the gratuity is payable irrespective of vesting. The Company makes annual contribution to the group gratuity scheme administered by the Life Insurance Corporation of India through its Gratuity Trust Fund.

Through its defined benefit plans the Company is exposed to a number of risks, the most significant of which are detailed below:

Investment risk

The present value of the defined benefit plan liability (denominated in Indian Rupee) is calculated using a discount rate which is determined by reference to market yields at the end of the reporting period on government bonds.

Interest risk

A decrease in the bond interest rate will increase the plan liability; however, this will be partially offset by an increase in the return on the plan’s debt investments.

Longevity risk

The present value of defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants both during and after their employment. An increase in the life expectancy of the plan participants will increase the plan’s liability.

Salary risk

The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the plan’s liability.

The above sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. In practice this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the defined benefit liability recognised in the Balance sheet.

The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to previous period.

The Company expects to contribute '' 97.96 lakh (31st March, 2017 '' 4.23 Lakh) to the gratuity trusts during the next financial year.

Maturity profile of defined benefit obligation:

36 - Related Party Disclosures

(a) Related Parties where control exists

(i) Holding Company

Mahindra & Mahindra Limited

(ii) Subsidiaries

Mahindra Infrastructure Developers Limited Industrial Township (Maharashtra) Limited

Mahindra Residential Developers Limited Anthurium Developers Limited

Mahindra World City (Maharashtra) Limited Deepmangal Developers Private Limited

Mahindra Integrated Township Limited Kismat Developers Private Limited *

Raigad Industrial & Business Park Limited * Topical Builders Private Limited *

Knowledge Township Limited Mahindra Water Utilities Limited

Rathna Bhoomi Enterprises Private Limited Moonshine Construction Private Limited

* These companies have been merged with Mahindra World City (Maharashtra) Limited during the year and ceased to be subsidiaries effective from 28th December, 2017

(b) Other Parties with whom Transactions have taken place during the year

(i) Joint Ventures

Mahindra World City Developers Limited Mahindra Industrial Park Chennai Limited

Mahindra Bebanco Developers Limited Mahindra World City (Jaipur) Limited

Mahindra Inframan Water Utilities Limited Industrial Cluster Private Limited Mahindra Homes Private Limited

Mahindra Happinest Developers Limited (incorporated on 06 September, 2017)

(ii) Fellow Subsidiaries

Mahindra Consulting Engineers Limited Bristlecone India Limited EPC Industries Limited

Mahindra Integrated Business Solutions Private Limited

Mahindra & Mahindra Contech Limited

Mahindra Holidays & Resorts India Limited

NBS International Limited

Mahindra First Choice Wheels Limited

Mahindra Intertrade Limited

(iii) Associate of Holding Company

Tech Mahindra Limited

(iv) Key Management Personnel

Ms Anita Arjundas - Managing Director & CEO

1 - In respect of real estate projects under long term contracts, determination of profits/ losses and realisability of the construction

work in progress & project advances necessarily involves making estimates by the Company, some of which are of a technical nature, concerning, where relevant, the percentage of completion, costs to completion and the projections of revenues expected from projects / activity and the foreseeable losses to completion. Profit from these contracts and valuation of construction work in progress is based on such estimates.

2 - Additional Information to the Financial Statements Dividend

In respect of the current year, the directors proposed dividend of '' 6 per share be paid on equity shares on 27th April, 2018. This equity dividend is subject to approval by shareholders at the Annual General Meeting and has not been included as a liability in these financial statements. The proposed equity dividend is payable to those shareholders whose names appear on Register of Members as on the book closure date. The total estimated equity dividend to be paid is '' 3,079.69 lakh. The payment of this dividend is estimated to result in payment of dividend distribution tax of '' 633.04 lakh @ 20.56% on the amount of dividends grossed up for the related dividend distribution tax.

Disclosure as per Regulation 34(3) read with Para A of Schedule V of the SEBI (Listing Obligations and Disclosures Requirements) Regulation, 2015.

* These companies have been merged with Mahindra World City (Maharashtra) Limited during the year and ceased to be subsidiaries effective from 28th December, 2017

3 - Recent accounting pronouncement

In March 2018, the Ministry of Corporate Affairs issued the Companies (Indian Accounting Standards) (Amendments) Rules, 2018, notifying Ind AS 115 - ‘Revenue from Contracts with Customers’. This standard is effective from 1st April, 2018, and establishes a single comprehensive model for accounting of revenue arising from contracts with customers. Ind AS 115 will supersede the current revenue recognition guidance under Ind AS 11 Construction Contracts and Ind AS 18 Revenue. The Company is currently assessing the impact of application of Ind AS 115 on Company’s financial statements.

4 - Input Tax Credit (ITC) benefits to the customers

Revenue from operations for the year ended 31st March, 2018 is net of Rs, 1,119 Lakh (31st March, 2017 -NIL) towards input tax credit benefits passed on to the customers as per the provisions of section 171 on Anti-Profiteering of CGST Act, 2017. The treatment is as per the prevailing Indian Accounting Standards.

5 - The comparative financial statements of the company for the previous year ended 31st March, 2017 were audited by the

predecessor auditor B.K. Khare & Co.

6. Events after the reporting period

No material events have occurred after the Balance Sheet date and upto the approval of the financial statements.

7. Previous Year Figures

The figures for previous year have been regrouped/reclassified wherever necessary to confirm to current year’s grouping/ classification.


Mar 31, 2017

1. Fair value disclosure on Company’s investment properties

The Company’s investment properties consist of two commercial properties in India, Mahindra Towers at Gurgaon and GE Plaza at Pune. Management determined that the investment properties consist of two classes of assets - office and retail - based on the nature, characteristics and risks of each property.

As at 31st March 2017 and 31st March 2016, the fair values of the Mahindra Tower, Delhi have been arrived at on the basis of a valuation carried out as on the respective dates by Gandhi & Associates, independent valuer not related to the Group. Gandhi & Associates are registered with the authority which governs the valuers in India and they have appropriate qualifications and experience in the valuation of properties in the relevant locations. The Fair value was determined using the market comparable approach based on recent market prices without any significant adjustments being made to the market observable data.

As at 31st March 2017 and 31st March 2016, the fair values of the GE Plaza, Pune have been arrived at on the basis of a valuation carried out as on the respective dates by Dixit Valuers & Engineers, independent valuer not related to the Group. Dixit Valuers & Engineers are registered with the authority which governs the valuers in India and they have appropriate qualifications and experience in the valuation of properties in the relevant locations. The Fair value was determined using the market comparable approach based on recent market prices without any significant adjustments being made to the market observable data.

Refer Note 31 for disclosures related to credit risk and related financial instrument disclosures.

2. During the year ended 31st March 2015, Other Loans and advances included project advances of Rs. 10,000 lakh pending for over 3 years relating to a project whose commencement had been delayed due to non-performance with respect to the agreed condition precedents by Vendors. The Company had taken legal action against the vendors to protect the interest of the Company where in the H’ble High Court at Mumbai had given order restraining the vendors from creating any third party rights in respect of the suit property or part with possession thereof.

3. During the previous year ended 31st March, 2016, the company had received an award in terms of the consent terms filed by the Company and the Vendors before the H’ble Arbitral Tribunal and the Company had acquired the property. The Company had planned to undertake the redevelopment of the property on completion of all obligation by the Vendors. Consequently the amount of Rs. 10,000 lakh was transferred to Construction Work in Progress in the previous year ended 31st March, 2016.

4. With the approval of the shareholders received at the 17th Annual General Meeting held on 28th July, 2016, the Company has on 27th March, 2017 sold the property in its inventory, situated at South Mumbai for a total consideration upto Rs. 23,721.00 lakh to a related party. The Company has received conveyance consideration of Rs. 17,671.00 lakh. As per the terms of settlement between the Company and the erstwhile landowners, upon completion of certain obligations by them, the Company shall pay an amount upto Rs. 6,050.00 lakh to the erstwhile landowners and the same shall be paid by the related party to the Company as balance consideration. The matter of determination of the factum of completion of the obligations by the erstwhile landowners is presently pending before the Hon’ble Arbitrator. The profit booked from this sale transaction will not be affected by the outcome of such arbitration.

5. The Company had entered into an agreement to acquire a parcel of land near Thane, Maharashtra, at a consideration of Rs. 2,000.00 lakh. While full consideration was paid, the land was not conveyed pending completion of certain formalities. The amount currently standing in the books as a current asset is Rs. 2,879.00 lakh. During the period, Tahsildar (Thane) has issued an order against the registered owner alleging non-adherence of certain conditions pertaining to Bombay Tenancy and Agricultural Lands Act, 1948 and changed the land records to reflect Government of Maharashtra as the holder of the land. The Company has been legally advised that the said order and the demand there under is grossly erroneous and not tenable.

6. Construction Work in Progress represents materials at site and unbilled costs on the projects. Based on projections and estimates by the Company of the expected revenues and costs to completion, provision for losses to completion and/ or write off of costs carried to inventory are made on projects where the expected revenues are lower than the estimated costs to completion. In the opinion of the management, the net realizable value of the construction work in progress will not be lower than the costs so included therein.

7. The Company had during the year ending 31st March 2015 entered into mutually agreed consent terms with a land-owner in respect of the project, commencement of which had been delayed and in accordance with the consent terms, the Company during the year ending 31st March, 2015 completed the sale of land in relation thereto. Accordingly, the provision for losses to project completion for Rs. 1,023.00 lakh in respect was no longer required and reversed during the year ending 31st March 2015. Further, revenue from operations for the year ended 31st March 2015 includes Rs. 25,263 lakh on sale thereof, net of the advances given and interest thereon. Operating expenses included in the year ended 31st March, 2015 Rs. 2,263 lakh of costs incurred in relation thereto. Other income included in the year ending 31st March 2015 was Rs. 1,550 lakh pertaining to write back of the provision for the interest on the aforesaid advance no longer required.

Consequent to the above, construction work-in-progress of Rs. 765.87 lakh and short term loans and advances and interest accrued on project advances included in other current assets of Rs.4,205.26 lakh and Rs. 2,174.98 lakh, respectively, at 31st March 2014 have been realized during the year ending 31st March 2015.

The cost of inventories recognized as an expense during the year in respect of continuing operations was Rs. 52,343.58 lakh (Previous year ending 31st March, 2016: Rs. 32,754.97 lakh)

8. Shares reserved for issue under options

The Company has 5,53,430 (Previous Year ending 31st March, 2016. 5,58,380) equity shares of Rs. 10/- each reserved for issue under options [Refer Note 26].

9. The allotment of 40,851 (Previous Year ending 31st March, 2016. 40,851) equity shares of the Company has been kept in abeyance in accordance with Section 206A of the Companies Act, 1956 (Section 126 of the Companies Act 2013), till such time as the title of the bonafide owner of the shares is certified by the concerned Stock Exchange or the Special Court (Trial of Offences relating to Transactions in Securities).

Debenture Redemption Reserve: A debenture redemption reserve is a provision created against issue of debentures to protect investors against the possibility of default by the company.

General Reserve: The general reserve is used from time to time to transfer profits from retained earnings for appropriation purposes. There is no policy of regular transfer. Items included under General Reserve shall not be reclassified back into the P&L.

Defect Liability Provisions:

Provision for defect liability represents present value of management’s best estimate of the future outflow of economic resources that will be required for rectification of defects, if any, in respect of residential units sold or given under perpetual lease. Management estimates the related provision for future defect liability claims based on historical cost of rectifications and is adjusted regularly to reflect new information. The residential units are generally covered under the defect liability period limited to 1 - 3 years from the date of handover of residential units. It is estimated that most of these costs are likely to be incurred within two years after the reporting date.

Secured Borrowing Nature of Security

The Short Term Loan/ Working Capital Demand Loan (WCDL) is secured by exclusive mortgage charge on immovable properties (part of Work in progress and Inventories) of the company while Cash Credit/Overdraft is secured by first hypothecation charge on all existing and future current assets of the company.

Terms of Repayment

Rate of interest for WCDL 9.25% while CC is MCLR plus 0.35% (presently 8.85%p.a). Cash Credit/ Overdraft facility is repayable on demand from bank.

Unsecured Loan

Includes Short Term Loan from bank for working capital purposes.

31) Financial Instruments Capital management

The Company’s capital management objectives are:

- safeguard its ability to continue as a going concern, so that it can continue to provide returns for shareholders and benefits for other stakeholders

- maintain an optimal capital structure to reduce the cost of capital

The Management of the Company monitors the capital structure using debt ratio which is determined as the proportion of total debt to total equity.

CREDIT RISK

10. Credit risk management

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. Credit risk arises from cash and cash equivalents, investments carried at amortized cost, deposits with banks and financial institutions as well as credit exposures to customers including outstanding receivables.

Trade Receivables:

The Company’s trade receivables include receivables on sale of residential flats and rent receivable. As per the Company’s flat handover policy, a flat is handed over to a customer only upon payment of entire amount of consideration. The rent receivables are secured by security deposits obtained under the lease agreement. Thus, the Company is not exposed to any credit risk on receivables from sale of residential flats and rent receivables.

Balances with Banks, mutual funds and other financial assets:

For banks and financial institutions, only high rated banks/institutions are accepted. The Company holds cash and cash equivalents with bank and financial institution counterparties, which are having highest safety ratings based on ratings published by various credit rating agencies. The Company considers that its cash and cash equivalents have low credit risk based on external credit ratings of the counterparties.

Disclose - Amount of maximum Exposure to Credit Risk of Each / Company of financial asset where impairment as per Ind AS 109 is not applied

The Company holds mutual funds with financial institution counterparties, which are having highest safety ratings based on ratings published by various credit rating agencies. The Company considers that its mutual funds have low credit risk based on external credit ratings of the counterparties.

For other financial assets, the Company assesses and manages credit risk based on reasonable and supportive forward looking information. The Company does not have significant credit risk exposure for these items.

LIQUIDITY RISK

11. Liquidity risk management

The Company established an appropriate liquidity risk management framework for the management of the Company’s short-, medium- and long-term funding and liquidity management requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

12. Maturities of financial liabilities

The following tables detail the Company’s remaining contractual maturity for its non-derivative financial liabilities with agreed repayment periods. The amount disclosed in the tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Company can be required to pay. The tables include both interest and principal cash flows. To the extent that interest flows are floating rate, the undiscounted amount is derived from interest rate curves at the end of the reporting period. The contractual maturity is based on the earliest date on which the Company may be required to pay.

13. Maturities of financial assets

The following table details the Company’s expected maturity for its non-derivative financial assets. The table has been drawn up based on the undiscounted contractual maturities of the financial assets including interest that will be earned on those assets. The inclusion of information on non-derivative financial assets is necessary in order to understand the Company’s liquidity risk management as the liquidity is managed on a net asset and liability basis.

MARKET RISK

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: currency risk, interest rate risk and other price risk such as equity price risk and commodity price risk. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimizing the return. All such transactions are carried out within the guidelines set by the Board of Directors. Currency Risk

Foreign currency risk is the risk that the fair value or the future cash flows of an exposure will fluctuate because of changes in the foreign exchange rate. The Company undertakes transactions denominated in foreign currencies only for the purchases of the components which are required to carry out the construction activities. The Company manages its foreign currency risk by forward contracts that are expected to occur within a maximum 12 month from the entering of a contract.

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company’s exposure to the risk of changes in market interest rates relates primarily to the Company’s long-term debt obligations with floating interest rates. The Company manages its interest rate risk by having a balanced portfolio of fixed and floating rate loans and borrowings.

Interest rate sensitivity

The following table demonstrates the sensitivity to a reasonably possible change in interest rates on that portion of loans and borrowings affected, after the impact of hedge accounting. With all other variables held constant, the Company’s profit before tax is affected through the impact on floating rate borrowings, as follows:

14. Employee benefits

15. Defined Contribution Plan

The Company’s contribution to Provident Fund and Superannuation Fund aggregating Rs. 347.56 lakh (2016 : Rs.131.47 lakh ) has been recognized in the Statement of Profit or Loss under the head Employee Benefits Expense.

16. Defined Benefit Plans:

Gratuity

The Company operates a gratuity plan covering qualifying employees. The benefit payable is the greater of the amount calculated as per the Payment of Gratuity Act, 1972 or the Company scheme applicable to the employee. The benefit vests upon completion of five years of continuous service and once vested it is payable to employees on retirement or on termination of employment. In case of death while in service, the gratuity is payable irrespective of vesting. The Company makes annual contribution to the group gratuity scheme administered by the Life Insurance Corporation of India through its Gratuity Trust Fund.

Terms and conditions of transactions with related parties

The transactions with related parties are made on terms equivalent to those that prevail in arm’s length transactions. Outstanding balances at the year-end are unsecured and interest free and settlement occurs in cash. For the year ended 31 March 2017, the Group has not recorded any impairment of receivables relating to amounts owed by related parties. This assessment is undertaken each financial year through examining the financial position of the related party and the market in which the related party operates.

Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly, including any director (whether executive or otherwise) of that entity.

The remuneration of directors and key executives is determined by the remuneration committee having regard to the performance of individuals and market trends.

17. Prior Period Items

No material events have occurred after the balance sheet date and up to the approval of the financial statements.

18. In respect of real estate projects under long term contracts, determination of profits/ losses and reliability of the construction work in progress & project advances necessarily involves making estimates by the Company, some of which are of a technical nature, concerning, where relevant, the percentage of completion, costs to completion and the projections of revenues expected from projects / activity and the foreseeable losses to completion. Profit from these contracts and valuation of construction work in progress is based on such estimates.

19. Previous Period Figures

The figures for previous year have been regrouped wherever necessary to conform to current year’s classification.

20. Additional Information to the Financial Statements Dividend

In respect of the current year, the Board at its meeting held on 22nd April, 2017 has recommended a dividend of Rs. 6 per share on equity shares of Rs. 10 each subject to approval by shareholders at the Annual General Meeting. The same has not been included as a liability in these financial statements. The proposed equity dividend is payable to all shareholders on the Register of Members on 31st March, 2017. The total estimated equity dividend to be paid is Rs. 2,463.26 lakh. The payment of this dividend is estimated to result in payment of dividend tax of Rs. 290.65 lakh @ 20.36% on the amount of dividends grossed up for the related dividend distribution tax. Disclosure as per Clause 32 of the Listing Agreements with the Stock Exchanges

Loans and advances in the nature of loans given to subsidiaries, associates, firms / companies in which directors are interested:


Mar 31, 2016

a) Shares reserved for issue under options

The Company has 5,58,380 (Previous Year 5,58,430) equity shares of Rs, 10/- each reserved for issue under options [Refer Note
24(b)].

b) The allotment of 40,851 (Previous Year 40,851) equity shares of the Company has been kept in abeyance in accordance with
Section 206A of the Companies Act, 1956 (Section 126 of the Companies Act 2013), till such time as the title of the boned owner
of the shares is certified by the concerned Stock Exchange or the Special Court (Trial of Offences relating to Transactions in
Securities).


The above debentures are secured by an exclusive charge over all assets, including Land & building as identified by the Company
from time to time.

At present the identified assets are land owned by the Company which is accounted as a part of Construction Work in Progress and
land owned by its Subsidiary Mahindra Integrated Township Limited.

Series I Debentures of face value Rs, 12,500 lakh are getting matured on 4th April 2016 and hence they form part of Other Current
Liabilities.

As it stands today on the date of approval of accounts, the same along with its redemption amount has already been repaid on the
due date on 4th April 2016.


Secured Loan

Nature of Security

Short Term Loan/Working Capital Demand Loan and Cash Credit/Overdraft facility. The Short Term Loan/WCDL is secured by exclusive
mortgage charge on immovable properties of the company while Cash Credit/Overdraft is secured by first hypothecation charge on
all existing and future current assets of the company.

Terms of Repayment

Rate of interest is base rate plus 0.20% (presently 9.70%p.a). Cash Credit/ Overdraft facility is repayable on demand from bank.


a) The Company''s investment in the equity shares of New Tirpur Area Development Corporation Limited ("NTADCL") aggregates Rs,
1,550.63 lakh comprising Rs, 50.63 lakh invested directly by the Company and Rs, 1,500 lakh by its wholly owned subsidiary
Mahindra Infrastructure Developers Limited ("MIDL"). Other than the investment in NTADCL, MIDL has no other operations. The net
worth of NTADCL and MIDL is substantially eroded.

NTADCL was exploring the option of supplying industrial water to a textile park proposed to be set up by the state government of
Karnataka which would have contributed substantially to its revenues. Consequent, to the finalization of the financial statements
for the year ended 31st March, 2014 it was expected that there were likely to be delays in setting up the same and the
probability of the whole project being set up was significantly lower as compared to the previous year. As a result, MIDL during
the previous year has made a provision for diminution of its investment in NTADCL of Rs, 1,500 lakh. The Company has also made a
provision for diminution of its investment in MIDL of Rs, 1,800 lakh and Rs, 50.63 lakh of its investment in NTADCL in previous
year ending 31st March, 2015.


*Construction Work in Progress represents materials at site and unbilled costs on the projects. Based on projections and
estimates by the Company of the expected revenues and costs to completion, provision for losses to completion and/ or write off
of costs carried to inventory are made on projects where the expected revenues are lower than the estimated costs to completion.
In the opinion of the management, the net realizable value of the construction work in progress will not be lower than the costs
so included therein.

#The Company had during the previous year entered into mutually agreed consent terms with a land-owner in respect of the project,
commencement of which had been delayed and in accordance with the consent terms, the Company during the previous year completed
the sale of land in relation thereto. Accordingly, the provision for losses to project completion for Rs, 1,023.00 lakh in
respect was no longer required and reversed during the previous year. Further, revenue from operations for the previous year
ended 31st March, 2015 includes Rs, 25,263 lakh on sale thereof, net of the advances given and interest thereon. Operating
expenses included in the previous year Rs, 2,263 lakh of costs incurred in relation thereto. Other income included in the
previous year Rs, 1,550 lakh pertaining to write back of the provision for the interest on the aforesaid advance no longer
required.

Consequent to the above, construction work-in-progress of Rs, 765.87 lakh and short term loans and advances and interest accrued
on project advances included in other current assets of Rs, 4,205.26 lakh and Rs, 2,174.98 lakh, respectively, at 31st March,
2014 have been realized during the previous year.

Specified Land owned by the Company is given as security for debentures (Refer note 4).

(b) Balance with Banks includes Unclaimed Dividend of Rs, 112.62 lakh (Previous year Rs, 103.24 lakh)


*Refer note no. 16(#)

# During the previous year Other Loans and advances included project advances of Rs, 10,000 lakh pending for over 3 years
relating to a project whose commencement had been delayed due to non-performance with respect to the agreed condition precedents
by Vendors. The Company had taken legal action against the vendors to protect the interest of the Company where in the H''ble High
Court at Mumbai had given order restraining the vendors from creating any third party rights in respect of the suit property or
part with possession thereof.

During the current year, the company has received an award in terms of the consent terms fled by the Company and the Vendors
before the H''ble Arbitral Tribunal and the Company has acquired the property. The Company shall be undertaking the redevelopment
of the property on completion of all obligation by the Vendors.

Consequently the amount of Rs, 10,000 lakh now stands transferred to Construction Work in Progress in the current year.

The short term loans and advances comprise entirely unsecured loans and advances to related parties for business purpose:

Loans and advances to Holding Company (Mahindra & Mahindra Limited) Rs, 2,000 Lakh

Loans & Advances to Associate


a) Gratuity

The components of the net benefit expense recognized in the statement of Profit and loss, the funded status and the amounts
recognized in the balance sheet in respect of the Company''s gratuity plan is summarized below:

(1) Description of the Plan:

The Company has covered its gratuity liability by a Group Gratuity Policy named ''Employee Group Gratuity Assurance Scheme'' issued
by Life Insurance Corporation of India ("LIC'''').Employee at retirement are eligible for a benefit, which will be equal to 15 days
salary for each completed year of service. The balance in the Employee Group Gratuity Assurance Scheme is the plan asset.


(8) Amount expected to be contributed to fund in coming year is Rs, 5.59 lakh.

(9) The gratuity fund is entirely invested in a group gratuity policy with the Life Insurance Corporation of India. The
information or the allocation of the fund into major asset classes and the expected return on major classes is not readily
available.


*During the previous year for ESOS 2006 scheme, the Company modified the exercise period of the options whereby the exercise
period of the options granted was extended from 5 years from the date of vesting of the respective tranche of the option to the
last date of the exercise period for the last tranche of the option granted under the said scheme.

@The company has adopted intrinsic value method for computing the compensation cost for the options granted. The Intrinsic value
i.e. the difference between the market price of the share and the exercise price is being amortized as employee compensation cost
over the vesting period.


The disclosure of commitment is given only to the extent of capital commitment and other disclosure relating to commitment has
not been given in order to avoid providing excessive details that may not assist users of Financial Statements.

1) In respect of real estate projects under long term contracts, determination of Profits/ losses and reliability of the
construction work in progress & project advances necessarily involves making estimates by the Company, some of which are of a
technical nature, concerning, where relevant, the percentage of completion, costs to completion and the projections of revenues
expected from projects / activity and the foreseeable losses to completion. Profit from these contracts and valuation of
construction work in progress is based on such estimates.

2) Leases:

The Company''s significant leasing arrangements are in respect of operating leases for Commercial & Residential premises.


Notes:

1. The segment result for Projects, Project Management and Development activity is arrived at after considering an interest
expense of Rs, 552.41 lakh (Previous year Rs, 375.88 lakh), as it formed part of the cost of projects according to the method of
accounting followed by the Company.

3) Related Party Transactions

List of related parties

Enterprises Controlling the Company

Mahindra & Mahindra Limited: Holding Company

Enterprises under the control of the Company

Mahindra Infrastructure Developers Limited Mahindra Integrated Township Limited

Mahindra World City Developers Limited Mahindra Residential Developers Limited

Mahindra World City (Jaipur) Limited Industrial Township (Maharashtra) Limited

Knowledge Township Limited Mahindra Bebanco Developers Limited

Mahindra World City (Maharashtra) Limited Raigad Industrial & Business Park Limited

Anthurium Developers Limited

Industrial Cluster Private Limited (Earlier Known as Mahindra Housing Private Limited)

Mahindra Industrial Park Chennai Limited (w.e.f. 22nd December 2014)

Mahindra Water Utilities Limited* (w.e.f. 27th July 2015)

*With effect from 27th July 2015 Mahindra Water Utilities Limited has been ceased to be joint venture and has become subsidiary.

Fellow Subsidiaries

Bristlecone India Limited

Mahindra Holidays & Resorts India Limited

Mahindra Consulting Engineers Limited

Mahindra Integrated Business Solutions Private Limited

EPC Industries Limited

Mahindra & Mahindra Contech Limited


Associates

Kismat Developers Private Limited Topical Builders Private Limited

Joint Ventures

Mahindra Inframan Water Utilities Private Limited

Mahindra Homes Private Limited (earlier known as Watsonia Developers Private Limited and before that Watsonia Developers Limited)

*With effect from 27th July 2015 Mahindra Water Utilities Limited has been ceased to be joint venture and has become subsidiary.

Key Managerial Personnel

Managing Director & Chief Executive Officer of the Company- Ms. Anita Arjundas Chief Financial Officer- Mr. Jayantt Manmadkar
Company Secretary- Mr. Suhas Kulkarni

Directors

Mr. Arun Nanda, Non-executive Non-Independent Chairman

Mr. Anish Shah, Non-executive Non-Independent Director

Mr. Sanjiv Kapoor, Non-executive Independent Director

Mr. Shailesh Haribhakti, Non-executive Independent Director

Dr. Prakash Hebalkar, Non-executive Independent Director

Enterprises over which key management personnel are able to exercise significant infuence: Nil

Transactions with related parties during the year and balance as on 31st March, 2016:


Mar 31, 2015

A) Equity Shares: The Company has issued one class of equity shares having a par value of Rs. 10 per share. Each shareholder is eligible for one vote per share.

b) Shares reserved for issue under options

The Company has 5,58,430 (Previous Year 6,12,656) equity shares of Rs. 10/- each reserved for issue under options [Refer Note 25(b)].

c) The allotment of 40,851 (Previous Year 40,851) equity shares of the Company has been kept in abeyance in accordance with Section 206A of the Companies Act, 1956 (Section 126 of the Companies Act 2013), till such time as the title of the bonafide owner of the shares is certified by the concerned Stock Exchange or the Special Court (Trial of Offences relating to Transactions in Securities).

The Company has during the year ended 31st March 2014, issued Non Convertible Debentures (NCDs) aggregating Rs. 50,000 lakhs which are redeemable at a premium. The total premium on redemption of Rs. 10,244.65 lakhs has been adjusted against the securities premium during the previous financial year as permitted under section 78 of the Companies Act, 1956.

* Term Loan from Bank was repaid on 10th June 2014. The loan was secured by a pari-passu charge on immovable properties of the Company and were also secured by pari-passu charge on specified movable and current assets of the Company, both present and future.

# Non Convertible Debentures

The above debentures are secured by an exclusive charge over all assets, including Land & building as identified by the Company from time to time.

At present the identified assets are land owned by the Company which is accounted as a part of Construction Work in Progress and land owned by its Subsidiary Mahindra Integrated Township Limited.

* Previous year amount is cash credit from Bank was repaid on 10th June 2014. The loan was secured by a pari-passu charge on immovable properties of the Company and were also secured by pari-passu charge on specified movable and current assets of the Company, both present and future.

Based on the information available with the Company there are no dues outstanding in respect of Micro, Small and Medium Enterprises as of Balance Sheet date.

a) There are no amounts due and outstanding to be credited to the Investor Education and Protection Fund.

a) The Company''s investment in the equity shares of New Tirpur Area Development Corporation Limited ("NTADCL") aggregates Rs. 1,550.63 lakhs comprising Rs. 50.63 lakhs invested directly by the Company and Rs. 1,500 lakhs by its wholly owned subsidiary Mahindra Infrastructure Developers Limited("MIDL"). Other than the investment in NTADCL, MIDL has no other operations. The net worth of NTADCL and MIdL is substantially eroded.

NTADCL was exploring the option of supplying industrial water to a textile park proposed to be set up by the state government of Karnataka which would have contributed substantially to its revenues. Consequent, to the finalization of the financial statements for the year ended 31st March, 2014 it is expected that there are likely to be delays in setting up the same including the probability of the whole project being set up is significantly lower as compared to the previous year. As a result MIDL has made provision for diminution of its investment in NTADCL of Rs. 1,500 lakhs. The Company has also made a provision for diminution of its investment in MIDL of Rs. 1,800 lakhs and Rs. 50.63 lakhs of its investment in NtaDcL.

Construction Work in Progress represents materials at site and unbilled costs on the projects. Based on projections and estimates by the Company of the expected revenues and costs to completion, provision for losses to completion and/ or write off of costs carried to inventory are made on projects where the expected revenues are lower than the estimated costs to completion. In the opinion of the management, the net realisable value of the construction work in progress will not be lower than the costs so included therein.

# The Company has during the year entered into mutually agreed consent terms with a land-owner in respect of this project, commencement of which had been delayed and in accordance with the consent terms, the Company during the year has completed the sale of land in relation thereto. Accordingly, the provision for losses to project completion for Rs. 1023.00 lakhs in respect is no longer required and has been reversed during the year. Further, revenue from operations for the year ended 31st March 2015 includes Rs. 25,262.65 lakhs on sale thereof, net of the advances given and interest thereon. Operating expenses include Rs. 2,262.65 lakhs of costs incurred in relation thereto. Other income includes Rs. 1,550.15 lakhs pertaining to write back of the provision for the interest on the aforesaid advance no longer required.

Consequent to the above, construction work-in-progress of Rs. 765.87 lakhs and short term loans and advances and interest accrued on project advances included in other current assets of Rs. 4,205.26 lakhs and Rs. 2,174.98 lakhs, respectively, at 31st March 2014 have been realised during the year.

Specified land owned by the Company is given as security for debentures.(Refer Note 4).

# Other Loans and advances include project advances of Rs. 10,000 lakhs pending for over 3 years relating to a project whose commencement has been delayed due to non performance with respect to the agreed condition precedents by Vendors. The Company has taken legal action against the vendors to protect the interest of the Company where in the H''ble High Court at Mumbai has given order restraining the vendors from creating any third party rights in respect of the suit property or part with possession thereof.

a) Gratuity

The components of the net benefit expense recognized in the statement of profit and loss, the funded status and the amounts recognized in the balance sheet in respect of the Company''s gratuity plan is summarized below

(1) Description of the Plan:

The Company has covered its gratuity liability by a Group Gratuity Policy named ''Employee Group Gratuity Assurance Scheme'' issued by Life Insurance Corporation of India (''LIC''). Employee at retirement are eligible for benefit, which will be equal to 15 days salary for each completed year of service. The balance in the Employee Group Gratuity Assurance Scheme is the plan asset.

(2) Principal actuarial assumptions:

(3) Amount expected to be contributed to fund in coming year is Rs. 3724 lakh.

(4) The gratuity fund is entirely invested in a group gratuity policy with the Life Insurance Corporation of India. The information or the allocation of the fund into major asset classes and the expected return on major class is not readily available.

The details of the Employee Stock Option Scheme are:

The company has adopted intrinsic value method for computing the compensation cost for the Options granted. The exercise price of the shares is based on the average of the daily high and low of the prices for the Company''s Equity Shares quoted on the Bombay Stock Exchange Limited, during the 15 days preceding the grant of the Options. The Intrinsic value i.e. the difference between the market price of the share and the exercise price is being amortised as employee compensation cost over the vesting period. The details of the same are given here under:

During the year, the Company modified the exercise period of the options granted under ESOS 2006 whereby the exercise period of the options granted was extended from 5 years from the date of vesting of the respective tranche of the option to the last date of the exercise period for the last tranche of the option granted under the said scheme.

b) The Company had granted 10,000 Equity shares on 4th August, 2012 to the eligible employee under the Employee Stock Option Scheme 2006 (ESOS 2006) of the company.

The company has adopted intrinsic value method for computing the compensation cost for the Options granted. The exercise price of the shares is based on the average of the daily high and low of the prices for the Company''s Equity Shares quoted on the Bombay Stock Exchange Limited, during the 15 days preceding the grant of the Options. The Intrinsic value i.e. the difference between the market price of the share and the exercise price is being amortised as employee compensation cost over the vesting period. The details of the same are given here under:

The Fair Value has been calculated using the Black Scholes Options Pricing Model and the significant assumptions made in this regard are as follows:

c) The Company had granted 101,000 Equity shares on 4th August,2012 to the eligible employees under the Employee Stock Option Scheme (ESOS 2012) of the company.

The details of the Employee Stock Option Scheme are:

The company has adopted intrinsic value method for computing the compensation cost for the Options granted. The exercise price of the shares is Rs. 10/- per stock option. The Intrinsic value i.e. the difference between the market price of the share and the exercise price is being amortised as employee compensation cost over the vesting period. The details of the same are given here under:

The details of the Employee Stock Option Scheme are:

The company has adopted intrinsic value method for computing the compensation cost for the Options granted. The exercise price of the shares is Rs. 10/- per stock option. The Intrinsic value i.e. the difference between the market price of the share and the exercise price is being amortised as employee compensation cost over the vesting period. The details of the same are given here under:

The Fair Value has been calculated using the Black Scholes Options Pricing Model and the significant assumptions made in this regard are as follows:

e) The Company had granted 27000 Equity shares on 17th October, 2014 to the eligible employees under the Employee Stock Option Scheme (ESOS 2012) of the company.

The company has adopted intrinsic value method for computing the compensation cost for the Options granted. The exercise price of the shares is Rs. 10/- per stock option. The Intrinsic value i.e. the difference between the market price of the share and the exercise price is being amortised as employee compensation cost over the vesting period. The details of the same are given here under:

The Fair Value has been calculated using the Black Scholes Options Pricing Model and the significant assumptions made in this regard are as follows:

Earnings Per Share as required by Accounting Standard 20 read with the Guidance Note on ''Accounting for Employee share-based Payments" is as follows.

The compensation costs of stock options granted to employees are accounted by the Company using the intrinsic value method.

During the year vesting period of ESOS 2006 was extended by one year hence the number of options cancelled during the year indicates the number of option cancelled netted of with the options revived as the result of such extension.

Information in respect of options outstanding as at 31st March, 2015:

5) Forwards Contracts

The Company enters into foreign currency exposure contract for the purpose of hedging its currency risk. These contracts are not intended for trading or speculation.

The disclosure of commitment is given only to the extent of capital commitment and other disclosure relating to commitment has not been given in order to avoid providing excessive details that may not assist users of Financial Statements.

6) In respect of real estate projects under long term contracts, determination of profits/ losses and realisability of the construction work in progress & project advances necessarily involves making estimates by the Company, some of which are of a technical nature, concerning, where relevant, the percentage of completion, costs to completion and the projections of revenues expected from projects / activity and the foreseeable losses to completion. Profit from these contracts and valuation of construction work in progress is based on such estimates.

7) Leases:

The Company''s significant leasing arrangements are in respect of operating leases for Commercial & Residential premises.

a) Lease income from operating leases is recognised on a straight-line basis over the period of lease. The particulars of the premises given under operating leases are as under:

8) Contingent Liabilities

Current Year Previous Year Rsin lakhs Rsin lakhs

a) Claims against the Company not acknowledged as debts represent :

i) Claims awarded by the Arbitrator to a civil contractor in respect of a project at Mumbai and the Company''s appeal against the award has been admitted by the Mumbai High Court 93.89 93.89

ii) Demand from local authorities for transfer fees on transfer ofproperty, disputed by the Company 123.99 123.99

iii) Demand from a local authority for energy dues disputed by the Company 2,164.04 2,164.04

iv) Claim from welfare association in connection with project work, disputed by theCompany 4,500.00 4,500.00

b) Income tax matters under appeal

In respect of certain business incomes re-classified by the Income tax Department as income from house property and other disallowances, the Company has partially succeeded in appeal and is pursuing the matterfurther with the higher appellate authorities 584.53 360.43

The liability net of Deferred Tax Asset/Deferred Tax Liability would be Rs 584.53 lakhs (previous year Rs. 360.43 lakhs)

Note:

The segment result for Projects, Project Management and Development activity is arrived at after considering an interest expense of Rs. 375.88 lakhs (Previous year Rs. 1,381.03 lakhs), as it formed part of the cost of projects according to the method of accounting followed by the Company.

9) Related Party Transactions

List of related parties Enterprises Controlling the Company Mahindra & Mahindra Limited: Holding Company

Enterprises under the control of the Company

Mahindra Infrastructure Developers Limited Mahindra Integrated Township Limited.

Mahindra World City Developers Limited Mahindra Residential Developers Limited

Mahindra World City (Jaipur) Limited Industrial Township(Maharashtra) Limited

Knowledge Township Limited Mahindra Bebanco Developers Limited

Mahindra World City (Maharashtra) Limited Raigad Industrial & Business Park Limited

Anthurium Developers Limited

Industrial Cluster Private Limited (Earlier Known as Mahindra Housing Private Limited)

Mahindra Industrial Park Chennai Limited (w.e.f. 22nd December 2014)

Fellow Subsidiaries

Bristlecone India Limited Mahindra Holidays & Resorts India Limited Mahindra Consulting Engineers Limited Mahindra Integrated Business Solutions Private Limited NBS International Private Limited

Associates

Kismat Developers Private Limited Topical Builders Private Limited

Joint Ventures

Mahindra Inframan Water Utilities Private Limited Mahindra Water Utilities Private Limited Mahindra Homes Private Limited (earlier known as Watsonia Developers Private Limited and before that Watsonia Developers Limited )

Key Managerial Personnel

Managing Director & Chief Executive Officer of the Company- Ms. Anita Arjundas Chief Financial Officer - Mr. Jayantt Manmadkar Company Secretary - Mr. Suhas Kulkarni

Directors

Mr. Arun Nanda, Non-executive Non-Independent Chairman Mr. Uday Y Phadke, Non-executive Non-Independent Director Mr. Sanjiv Kapoor,Non-executive Independent Director Mr. Shailesh Haribhakti,Non-executive Independent Director Mr. Anil Harish, Non-executive Independent Director Dr. Prakash Hebalkar, Non-executive Independent Director

Enterprises over which Key Managerial Personnel are able to exercise significant influence: Nil

10) Information in respect of Jointly Controlled Operations and Joint Venture

a) Jointly Controlled operations

i) Development of the following residential projects:

G. E. Gardens, Mumbai

Kukattpally, Hyderabad

ii) Project for providing potable drinking water and sewerage facilities at Tirupur, Tamil Nadu.

b) Joint Venture

Sector 59, Gurgaon Bannerghatta Road, Bangalore


Mar 31, 2014

1) In respect of real estate projects under long term contracts, determination of Profits/ losses and reliability of the construction work in progress & project advances necessarily involves making estimates by the Company, some of which are of a technical nature, concerning, where relevant, the percentage of completion, costs to completion and the projections of revenues expected from projects / activity and the foreseeable losses to completion. Profit from these contracts and valuation of construction work in progress is based on such estimates.

2) Leases:

The Company''s Significant leasing arrangements are in respect of operating leases for Commercial & Residential premises.

3) Contingent Liabilities

Matter Current Year Previous Year Rs. in lakhs Rs. in lakhs

a) Claims against the Company not acknowledged as debts represent:

i) Claims awarded by the Arbitrator to a civil contractor in respect of a project at Mumbai and the Company''s appeal against the award has been admitted by the Mumbai High Court 93.89 182.33

ii) Demand from local authorities for transfer fees on transfer of property, disputed by the Company 123.99 123.99

iii) Demand from a local authority for energy dues disputed by the Company 2,164.04 2,164.04

iv) Claim from welfare association in connection with project work, disputed by the Company 4,500.00 -

b) Income tax matters under appeal

In respect of certain business incomes re-classifed by the Income tax Department as income from house property and other disallowances, the Company has partially succeeded in appeal and is pursuing the matter further with the higher appellate authorities 360.43 935.60

The liability net of Deferred Tax Asset/Deferred Tax Liability would be Rs. 360.43 lakhs (previous year Rs. 524.17 lakhs)

4) Related Party Transactions

List of related parties

Enterprises Controlling the Company

Mahindra & Mahindra Limited: Holding Company

Enterprises under the control of the Company

Mahindra Infrastructure Developers Limited Mahindra Integrated Township Limited.

Mahindra World City Developers Limited Mahindra Residential Developers Limited

Mahindra World City (Jaipur) Limited Industrial Township (Maharashtra) Limited

Knowledge Township Limited Mahindra Bebanco Developers Limited

Mahindra World City (Maharashtra) Limited Raigad Industrial & Business Park Limited

Anthurium Developers Limited Mahindra Housing Private Limited

Mahindra Homes Private Limited (earlier known as Watsonia Developers Private Limited and before that Watsonia Developers Limited)*

*With effect from 20th July 2013 Mahindra Homes Private Limited has been ceased to be subsidiary and has become joint venture.

Fellow Subsidiaries

Bristlecone India Limited

Mahindra Holidays & Resorts India Limited

Mahindra Consulting Engineers Limited

Mahindra Integrated Business Solutions Private Limited

Associates

Kismat Developers Private Limited

Topical Builders Private Limited

Joint Ventures

Mahindra Inframan Water Utilities Private Limited

Mahindra Water Utilities Private Limited

Mahindra Homes Private Limited (earlier known as Watsonia Developers Private Limited and before that Watsonia Developers Limited)*

*With effect from 20th July 2013 Mahindra Homes Private Limited has been ceased to be subsidiary and has become joint venture.

5) Information in respect of Jointly Controlled Operations

i) Development of the following residential projects:

G.E. Gardens, Mumbai

Kukattpally, Hyderabad

ii) Project for providing potable drinking water and sewerage facilities at Tirupur, Tamil Nadu.

6) The figures for previous year have been regrouped wherever necessary to conform to current year''s classification


Mar 31, 2013

1) In respect of real estate projects under long term contracts, determination of profits/ losses and realisability of the construction work in progress & project advances necessarily involves making estimates by the Company, some of which are of a technical nature, concerning, where relevant, the percentage of completion, costs to completion and the projections of revenues expected from projects / activity and the foreseeable losses to completion. Profit from these contracts and valuation of construction work in progress is based on such estimates.

2) Leases:

The Company''s significant leasing arrangements are in respect of operating leases for Commercial & Residential premises.

3) Information in respect of Jointly Controlled Operations

i) Development of the following residential projects:

G.E. Gardens, Mumbai

Kukattpally, Hyderabad

ii) Project for providing potable drinking water and sewerage facilities at Tirupur, Tamil Nadu.

4) The figures for previous year have been regrouped wherever necessary to conform to current year''s classification


Mar 31, 2012

A) Shares reserved for issue under options

Refer note 22(#) for details of shares to be issued under the Employee Stock Option Plan

b) The allotment of 45,351 (Previous Year 45,351) Equity shares of the Company has been kept in abeyance in accordance with Section 206A of the Companies Act, 1956, till such time as the title of the bonfire owner of the shares is certified by the concerned Stock Exchange or the Special Court (Trial of Offences relating to Transactions in Securities).

* Nature of Security

Secured borrowings are secured by a pari-passu charge on immovable properties of the company and are also secured by pari-passu charge on specified movable and current assets of the company, both present and future.

# Terms of Repayment

The said loan amount is repayable quarterly on prorated basis after one year starting from June 30, 2013. Interest is payable on monthly basis.

* The Company has, in case of certain projects, provided for Rs 1,023.00 lakh (previous year Rs 1,023.00 lakh) as provision for losses to project completion. The amount has been determined using best estimates with regard to percentage of completion, foreseeable costs to completion and revenues from the project activity. However, considering future business scenario, inflation in construction costs and market movement causing changes in realizations, which cannot be presently quantified, the final outcome may differ from that presently estimated. The probability and the timing of the outflow with regard to this matter depends on the completion of the project and conclusion of the arbitration proceedings.

In the opinion of the Management, no loss is expected to arise in respect of other long term investments for which an additional provision is required to be made in the accounts.

The Company has made investment in equity shares of Rs 180,000,000 in the wholly owned subsidiary Mahindra Infrastructure Developers Limited("MIDL"). MIDL has further invested Rs 150,000,000 in the equity shares of New Tirupur Area Development Corporation Limited (NTADCL). Due to adverse business conditions, NTADCL has been making losses and there has been an erosion in the net worth of NTADCL. The various steps taken by the stakeholders such as infusion of equity capital, debt restructuring, increase in tariff rates of water etc and various other concessions from Tamil Nadu Government will lead to a turnaround in the operations of NTADCL and improve its financial position. Thus in view of the management there is no permanent diminution in the value of the investments in NTADCL and in the value of the investments in MIDL.

* Construction Work in Progress represents materials at site and unbilled costs on the projects. Based on projections and estimates by the Company of the expected revenues and costs to completion, provision for losses to completion and/ or write off of costs carried to inventory are made on projects where the expected revenues are lower than the estimated costs to completion. In the opinion of the management, the net realizable value of the construction work in progress will not be lower than the costs so included therein.

# Construction Work-in-Progress include Rs 765.87 lakh (previous year Rs 765.87 lakh) on account of a project, where commencement of construction has been delayed on account of a dispute between the land-owner and the Company. The dispute has been referred to arbitration.

* Other Loans & Advances include Rs 4,205.26 lakh (previous year Rs 4,205.26 lakh) on account of a project, where commencement of construction has been delayed on account of a dispute between the land-owner and the Company. The dispute has been referred to arbitration.

* Interest accrued thereon represents the amounts recoverable from the proceeds of projects undertaken/financed by the Company as per the contracted terms. The advances as well as the interest thereon are considered good and fully recoverable based on inter-alia estimates and projections by the Company of the project costs and revenues.

# Interest accrued include Rs 2,174.98 lakh (previous year Rs 2,174.98 lakh) on account of a project, where commencement of construction has been delayed on account of a dispute between the land-owner and the Company. The dispute has been referred to arbitration.

* Gratuity

(1) Description of the Plan:

The Company has covered its gratuity liability by a Group Gratuity Policy named 'Employee Group Gratuity Assurance Scheme' issued by LIC of India. Under the plan, employee at retirement is eligible for benefit, which will be equal to 15 days salary for each completed year of service. Thus, it is a defined benefit plan and the aforesaid insurance policy is the plan asset.

The disclosure of commitment is given only to the extent of capital commitment and other disclosure relating to commitment has not been given in order to avoid providing excessive details that may not assist users of Financial Statements.

1) In respect of real estate projects under long term contracts, determination of profits/ losses and reliability of the construction work in progress & project advances necessarily involves making estimates by the Company, some of which are of a technical nature, concerning, where relevant, the percentage of completion, costs to completion and the projections of revenues expected from projects / activity and the foreseeable losses to completion. Profit from these contracts and valuation of construction work in progress is based on such estimates.

2) Leases:

The Company's significant leasing arrangements are in respect of operating leases for Commercial & Residential premises.

3) Conttngsm

Matter Current Year Previous Year

Rs.in lakh Rs.in lakh

a) Claims against the Company not acknowledged as debts represent:

i) A suit filed by a party in the Delhi High Court, and disputed by the Company, for recovery of brokerage in respect of a transaction relating to operating of commercial complexes. In the opinion of the management the above claim is not sustainable 42.67 42.67

ii) Claims awarded by the Arbitrator to a civil contractor in respect of a project at Mumbai and the Company's appeal against the award has been admitted by the Mumbai High Court 88.44 88.44

iii) Demand from local authorities for transfer fees on transfer of property, disputed by the Company 123.99 123.99

iv) Demand from a local authority for energy dues disputed by the company 2,164.04 2,164.04

b) Income tax matters under appeal

In respect of certain business incomes reclassified by the Income tax Department as income from house property and other disallowances, the Company has partially succeeded in appeal and is pursuing the matter further with the higher appellate authorities 1,321.80 1,218.65

The liability net of Deferred Tax Asset/Deferred Tax Liability would be Rs 846.49 lakh (previous year t 743.34 lakh)

Notes:

1. The segment result for Projects, Project Management and Development activity is arrived at after considering an interest expense ofRs 1,381.03 lakh (Previous year Rs 187.36 lakh), as it formed part of the cost of projects according to the method of accounting followed by the Company.

2. The Company has discontinued the Operations of its segment - Business Centre during the quarter ended 31st December, 2010.

4) Information in respect of Jointly Controlled Operations

i) Development of the following residential projects:

G.E. Gardens, Mumbai

Kukattpally, Hyderabad

ii) Project for providing potable drinking water and sewerage facilities at Tirupur, Tamil Nadu.

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