Notes to Accounts of RDB Realty & Infrastructure Ltd.

Mar 31, 2018

A. CORPORATE INFORMATION

RDB Realty & Infrastructure Ltd (The Company) is a public limited company domiciled and incorporated in India and its shares are publicly traded on the Bombay Stock Exchange (BSE) and The Calcutta Stock Exchange (CSE). It is an ISO 9001:2008 certified company, and is one of the leading real estate companies in Eastern India. The Company has pan India presence with all the necessary infrastructure, manpower, and finance. The registered office of the Company is situated at 8/1, Lalbazar Street, Bikaner Building, 1 Floor, Room No.10, Kolkata-700001.

The principle business activity of the company is Real Estate Development. The Company has a strong foothold in all the rapidly growing cities of West Bengal like Asansol, Burdwan, Haldia, Kharagpur, Midnapur and other upcoming cities of India including Agra, Bikaner, Guwahati, Hyderabad and Surat.

e. The rights, preferences & restrictions attaching to shares and restrictions on distribution of dividend and repayment of capital The Company has only one class of equity shares having par value of Rs. 10 per share. Each Shareholder is eligible for one vote. dividend proposed by the Board of Directors is subject to the approval of shareholders, except in case of interim dividend.

i) As per the scheme of amalgamation in the FY 12-13 of Pincha Home Builders Private Limited (The Transferor Company) and RDB Realty & Infrastructure Limited (The Transferee Company) as approved by Honourable High Court at Calcutta, company issue has 64,83,400 Nos. of Shares to the shareholders of the Pincha Home Builders Private Limited. in the ratio 1:2.2.

Notes

1 The Estimates of future salary increases, considered in actuarial valuation takes account of inflation, seniority, promotion and other relevant factors such as supply and demand in employment market.

2 Discount rate is based upon the market yields available on Government Bonds at the accounting date with a term that matches with that of liabilities.

2. Contingent Liabilities:-

(a) On account of corporate Guarantee of Rs.13500.00 Lacs (Previous Year Rs.13500.00 lacs) given by company to M/s. Xander Finance Private Limited ( Lender) for securing a term loan of M/s. Concast Infrastructure Pvt.Ltd and HPSD Enclave LLP.

(b)On account of Guarantee Rs. 1199.94 lacs (Previous Year Rs.1516.50 lacs) issued by the company''s bankers to the Contractee for projects under EPC Division.

(c) Appeal filed by the company against the order of Assessing officer determining demand of Rs.174.28 Lacs has been decided in the favour of the company. The disallowance/ addition made by the Assessing officer has been deleted by the Honourable Commissioner (Appeals). Income Tax Department has preferred/ filled an appeal with the Appellate Tribunal.

(d) Demand has been raised by Income Tax Department for Rs.103.66 Lacs against company for the Asst Year 12 - 13 against which appeal have been filed with Commissioner (Appeal) of Income Tax.

(e) Demand has been raised by Income Tax Department for Rs.102.36 Lacs against company for the Asst Year 13 - 14 against which appeal has been filed with Commissioner (Appeal) of Income Tax.

3. First Time Adoption of Ind AS

The Company has prepared the opening balance sheet as per Ind AS as of 1st April, 2016 (the transition date) by recognising all assets and liabilities whose recognition is required by Ind AS, not recognising items of assets or liabilities which are not permitted by Ind AS, by reclassifying items from previous Generally Accepted Accounting Principles (GAAP) to Ind AS as required under Ind AS, and applying Ind AS in measurement of recognised assets and liabilities.

Ind AS 101 (First-time Adoption of Indian Accounting Standards) provides a suitable starting point for accounting in accordance with Ind AS and is required to be mandatorily followed by first-time adopters. The Company has prepared the opening Balance Sheet as per Ind AS as of 1st April, 2016 (the transition date) by:

(a) recognising all assets and liabilities whose recognition is required by Ind AS,

(b) not recognising items of assets or liabilities which are not permitted by Ind AS,

(c) reclassifying items from previous Generally Accepted Accounting Principles (GAAP) to Ind AS as required under Ind AS, and applying Ind AS in measurement of recognised assets and liabilities.

3.1 Ind AS Optional Exemptions

Deemed Cost of Property, Plant and Equipment

Ind AS 101 permits a first time adopter to elect to continue with the carrying value for property, plant and equipment and use that as its deemed cost at the date of transition.

Accordingly, the Company has elected to measure all of its property, plant and equipment at their previous GAAP carrying value. Deemed Cost of Investment in Subsidiaries, Associates and Joint Ventures

Ind AS 27 requires investments in subsidiaries to be recorded at cost or value it in accordance with Ind AS 109 in its separate financial statements. However Ind AS 101 provides an option to the Company to measure such investment at cost (determined in accordance with Ind AS 27) or deemed cost (fair value or previous GAAP carrying amount) at the date of transition. Accordingly, the Company has availed the above exemption and recognized the investments in subsidiaries at the previous GAAP carrying amount at the date of transition to Ind AS

3.2 Ind AS Mandatory Exemptions

(a) Estimates

An entity''s estimates in accordance with Ind AS at the date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with previous GAAP

Ind AS estimates at 1^st April, 2016 are consistent with the estimates as at the same date made with conformity with previous GAAP

(b) De-recognition of Financial Assets and Liabilities

Ind AS 101 requires a first time adopter to apply the de-recognition provisions of Ind AS 109 prospectively for transactions occurring on or after the date of transition to Ind AS. However, Ind AS 101 allows a first time adopter to apply the de-recognition retrospectively from a date of entity''s choosing.

The entity has elected to apply the de-recognition provisions prospectively from the date of transition.

(c) Classification and Measurement of Financial Assets

Ind AS 101 requires an entity to assess classification and measurement of assets on the basis of facts and circumstances that exist at the date of transition to Ind AS.

The entity has applied this exception.

(d) Fair Valuation of Investments

Under the previous GAAP, investments were classified as long term investments or current investments based on the intended holding period and realisability. Under Ind AS, these investments are required to be measured at fair value. The resulting fair value changes of these investments have been recognised in retained earnings as at the date of transition.

3.3 Transition to Ind AS - Reconciliations

Ind AS 101 requires an entity to reconcile equity, total comprehensive income and cash flows for prior periods. The following tables represent the reconciliations from Previous GAAP to Ind AS:

Notes:

i) Under Indian GAAP, there are certain security deposits received and refundable advances given which are carried at nominal value. Ind AS requires the measurement of these assets at fair value at inception and subsequently these assets are measured at amortized cost. At inception date, Company recognises difference between deposit fair value and nominal value as income/expenses and the Company recognises notional interest income/expenses on these deposits over the lease term.

ii) Indian GAAP required deferred tax accounting using the income statement approach, which focusses on differences between taxable profits and accounting profits for the period. Ind AS 12 requires entities to account for deferred taxes using the balance sheet approach, which focuses on temporary differences between the carrying amount of an asset or liability in the balance sheet and its tax base. The application of Ind AS 12 approach has resulted in recognition of deferred tax on new temporary differences, which was not required under Indian GAAP. In addition, the various transitional adjustments lead to different temporary differences. According to the accounting policies, the Company has to account for such differences. Deferred tax adjustments are recognised in correlation to the underlying transaction either in retained earnings or a separate component of equity.

iii) The Company has undertaken a detailed exercise to determine the manner of allocation of expenses to inventory in context of Ind AS and accordingly realigned allocation of expenses and income to comply with Ind AS requirements.

c) Impact of Ind AS adoption on the Cash Flow Statement for the year ended 31st March, 2017

There are no significant differences between the Cash Flow Statement presented under Ind AS and the Previous GAAP

4A. Capital Requirements

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

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company includes within net debt, interest bearing loans and borrowings, trade and other payables less cash and cash equivalents

In order to achieve this overall objective, the Company''s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. Breaches in meeting the financial covenants would permit the bank to immediately call loans and borrowings. There have been no breaches in the financial covenants of any interest-bearing loans and borrowing in the current period.

No changes were made in the objectives, policies or processes for managing capital during the years ended March 31, 2017 and March 31, 2016.

Disclosure of Financial Instruments

Financial risk management objectives and policies

The Company''s principal financial liabilities comprise loans and borrowings, trade and other payables. The main purpose of these financial liabilities is to finance and support Company''s operations. The Company''s principal financial assets include trade and other receivables, cash and cash equivalents and loans and advances and refundable deposits that derive directly from its operations.

The Company is exposed to market risk, credit risk and liquidity risk. The Company''s senior management oversees the management of these risks. The Company''s senior management is supported by a financial risk committee that advises on financial risks and the appropriate financial risk governance framework for the Company. The financial risk committee provides assurance to the Company''s senior management that the Company''s financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company''s policies and risk objectives. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarized below:

(a) Market Risk:

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises two types of risk: interest rate risk and other price risk, such as equity price risk and commodity/ real estate risk. The Company has not entered into any foreign exchange or commodity derivative contracts. Accordingly, there is no significant exposure to the market risk other than interest risk.

i) 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 variable rate loans and borrowings. Most of the borrowings of the Company are unsecured and at fixed rates. The Company has only one cash credit account which is linked to the Prime Bank Lending Rate. The Company does not enter into any interest rate swaps.

ii) Price Risk

The Company has not made any investments for trading purposes. The surpluses have been deployed in bank deposits as explained above.

(b) Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including refundable joint development deposits, security deposits, loans to employees and other financial instruments.

Trade Receivables

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

- Receivables resulting from other than sale of properties: Credit risk is managed by each business unit subject to the Company''s established policy, procedures and control relating to customer credit risk management. Outstanding customer receivables are regularly monitored. The impairment analysis is performed at each reporting date on an individual basis for major clients. In addition, a large number of minor receivables are grouped into homogeneous groups and assessed for impairment collectively. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets. The Company does not hold collateral as security. The Company''s credit period generally ranges from 30-60 days.

Deposits with banks and financial institutions

Credit risk from balances with banks and financial institutions is managed by the Company''s treasury department in accordance with the Company''s policy. Investments of surplus funds are made only with approved counterparties and within credit limits assigned to each counterparty.

Counterparty credit limits are reviewed by the Company''s Board of Directors on an annual basis, and may be updated throughout the year subject to approval of the Board. The limits are set to minimise the concentration of risks and therefore mitigate financial loss through a counterparty''s potential failure to make payments. The Company''s maximum exposure to credit risk for the components of the statement of financial position at 31 March 2017 and 2016 is the carrying amounts.

(c) Liquidity Risk

The Company''s investment decisions relating to deployment of surplus liquidity are guided by the tenets of safety, liquidity and return. The Company manages its liquidity risk by ensuring that it will always have sufficient liquidity to meet its liabilities when due. In case of short term requirements, it obtains short-term loans from its Bankers.

5. The figures of Previous Year have been recast, regrouped wherever considered necessary.

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Mar 31, 2016

1. Employee Defined Benefits:-

a) Defined Contribution Plans: The Company has recognized an expense of Rs. 1.28 Lacs (Previous Year Rs. 1.17 Lacs) towards the defined contribution plans.

b) Defined Benefit Plans: As per actuarial valuation as on March 31, 2016 and recognized in the financial statements in respect of Employee Benefit Schemes:

2. The Estimates of future salary increases, considered in actuarial valuation takes account of inflation, seniority, promotion and other relevant factors such as supply and demand in employment market.

3. Discount rate is based upon the market yields available on Government Bonds at the accounting date with a term that matches with that of liabilities.

4.. Related Party Disclosures in accordance with AS - 18:-

(i) Enterprises where control exists (A) Subsidiaries:-

1 Bahubali Tie-Up Private Limited 7 Triton Commercial Private Limited

2 Baron Suppliers Private Limited 8 Rathi Ess En Finance Co. Private Limited *

3 Bhagwati Builders & Development Private Limited 9 Raj Construction Projects Private Limited

4 Bhagwati Plasto Works Private Limited 10 RDB Legend Infrastructure Private Limited

5 Headman Mercantile Private Limited 11 RDB Realty Private Limited **

6 Kasturi Tie-Up Private Limited 12 Maple Tie-up Private Limited ***

* Entire holding of the company was disposed off as on 20.03.2015.

** 860154 Shares representing 8.60% holding were disposed on 28.07.14, resulting in reduction in holding to 53.63%.

*** 7000 shares representing 70% the holding of the company were acquired by Parent company as on 01.07.14.

(B) Partnership Firm/LLP:-

5.. Rs.1,13,76,458/- (P.Y. - Nil) interest provided on loan taken for real estate projects or loan fund deployed on real estate projects has been capitalized to construction work in progress in accordance with AS - 16 "Borrowing Cost"

6.. Contingent Liabilities:-

a) On account of Guarantee Rs. 1832.41 lacs (Previous Year Rs. 1475.59 lacs) issued by the company''s bankers to the Contracted for projects under EPC Division.

b) Appeal filed by the company against the order of Assessing officer determining demand of Rs.174.28 Lacs has been decided in the favour of the company. The disallowance/ addition made by the Assessing officer has been deleted by the Honorable Commissioner (Appeals). Income Tax Department has preferred/ filled an appeal with the Appellate Tribunal. The management is to get judgment in its favor, and hence have not made any provision in the financial statement.

c) Demand has been raised by Income Tax Department for Rs.103.66 Lacs against company for the Asst Year 12 - 13 against which appeal have been filed with Commissioner (Appeal) of Income Tax.

d) Demand has been raised by Income Tax Department for Rs.102.36 Lacs against company for the Asst Year 13 -14 against which appeal is yet to be filed with Commissioner (Appeal) of Income Tax.

7. During the F/Y : 2014-15 under review, HSCC Limited (contractor) a government of India undertaking has revoked contract for construction of hostel and O.P.D under the control of Regional Institute of Medical Science at Imphal consequent to such revocation the contractor has revoked the Bank Guarantee issued in favour of contractor amounting to Rs. 557.75 lacs. The contract was executed by a sub-contractor, as per the terms of contract with RDBRIL, the sub-contractor is liable to bear any damages/loss/expenses suffered by RDBRIL. Hence, no provision has been made for the same.

8. The figures of Previous Year have been recast, regrouped wherever considered necessary.

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Mar 31, 2015

A. The rights, preferences & restrictions attaching to shares and restrictions on distribution of dividend and repayment of capital

The Company has only one class of equity shares having par value of Rs. 10 per share. Each Shareholder is eligible for one vote. The dividend proposed by the Board of Directors is subject to the approval of shareholders, except in case of interim dividend.

i) 1,07,50,000 Shares were issued in the FY 10-11 to the Shareholders of NTC Industries Ltd. (Formerly RDB Industries Ltd.) in pursuance of scheme of arrangement for demerger of Real Estate Division of RDB Industries Ltd. (Now known as NTC Industries Ltd.)

ii) As per the scheme of amalgamation in the FY 12-13 of Pincha Home Builders Private Limited (The Transferor Company) and

RDB Realty & Infrastructure Limited (The Transferee Company) as approved by Honourable High Court at Calcutta, company has issued 64,83,400 Nos. of Shares to the shareholders of the Pincha Home Builders Private Limited. in the ratio 1:2.2 (Refer Note No. 35)

2. Employee Defined Benefits:-

a) Defined Contribution Plans: The Company has recognised an expense of Rs. 1.17 Lacs (Previous Year Rs. 1.14 Lacs) towards the defined contribution plans.

b) Defined Benefit Plans: As per actuarial valuation as on March 31, 2015 and recognised in the financial statements in respect of Employee Benefit Schemes:

3. Segment Reporting:-

The Business of the company fall under a single segment i.e. "Development of Real Estate & Infrastructure". In view of the general classification notified by Central Government in exercise of power conferred u/s 129 of Companies Act, 2013 for company operating in a single segment, the disclosure requirement as per AS - 17 on 'Segment Reporting' is not applicable to the company. The Company's business is mainly concentrated in similar geographical, political and economical conditions; hence disclosure for Geographical segment is also not required.

* Entire holding of the Company was disposed off as on 20.03.2015

** Holding was disposed as on 28.07.2014 consequently the holding is reduced to 53.63%.

*** 7000 shares representing 70% of the paid up share capital of the company were acquired by Parent Company as on 01.07.2014 (B) Partnership Firm/LLP:-

4. In the opinion of the Board the Current Assets, Loans and Advances are not less than the stated value if realised in ordinary course of business. The provision for all known liabilities is adequate and not in excess of the amount reasonably necessary. There is no contingent liability except stated and informed by the Management.

5. Interest on Short Term Borrowings included under the relevant loan, as it is deemed to have been converted into loan as and when credited as per terms.

6. Disclosure relating to Amalgamation as per AS-14

a) The scheme of amalgamation has taken place between Pincha Home Builders Private Limited (the Transferor Company) and RDB Realty & Infrastructure Ltd (the Transferee Company) both are dealing in construction activities.

b) The Effective date of Amalgamation is 1st April, 2012.

c) Pooling of interest method of accounting has been used to reflect the amalgamation.

d) The scheme of amalgamation of Pincha Home Builders Private Limited (the Transferor Company) and RDB Realty & Infrastructure Ltd (the Transferee Company) has been approved by the Honourable High Court at Calcutta. Hence, the effect of amalgamation has been incorporated in the books of accounts.

e) 64,83,400 Nos. of Equity Shares issued against 29,47,000 Nos. of Equity Shares of Pincha Home Builders Private Limited in the ration 1:2.2.

f) Net Assets Aquired amounted Rs. 15,28,18,275/-

7. Contingent Liabilities:-

a) On account of Guarantee Rs. 1475.59 lacs (Previous Year Rs. 2306.25 lacs) issued by the company's bankers to the Contractee for projects under EPC Division.

b) During the year under review, demand has been raised by Income Tax Department for Rs.277.94 Lacs against company for the Asst Year 11 - 12 and 12 - 13 for which appeal have been filed with Commissioner (Appeal) of Income Tax.

8. During the year under review, HSCC Limited (contractor) a government of India undertaking has revoked contract for construction of hostel and O.P.D under the control of Regional Institute of Medical Science at Imphal consequent to such revocation the contractor has revoked the Bank Guarantee issued in favour of contractor amounting to Rs. 557.75 lacs. The contract was executed by a sub-contractor, as per the terms of contract with RDBRIL, the sub-contractor is liable to bear any damages/loss/expenses suffered by RDBRIL. Hence, no provision has been made for the same.

9. During the year under review, the company has changed the method of providing depreciation on fixed assets from W.D.V. to S.L.M., persuant to the change, depreciation the current year is short by Rs. 22.09 Lacs. Further depreciation up to 31.03.14 has been charged in excess by Rs. 153 Lacs.

10. The Company has adopted useful lives of the fixed assets as those specified in Part "C" of Schedule II to the Companies Act, 2013 ("the Act"). Accordingly carrying amount of assets, for which the useful lives as per the revised estimate are exhausted as of 1st April, 2014 have been adjusted with the opening balance retained earning as on that date after retaining the residual value of those assets. For the other assets, the carrying amount as of 1st April, 2014 will be amortised over the remaining useful lives of the assets. Rs. 4.22 Lacs has been adjusted with the opening retained earning as of 1st April' 2014.

11. The figures of Previous Year have been recast, regrouped wherever considered necessary.

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Mar 31, 2014

1. The rights, preferences & restrictions attaching to shares and restrictions on distribution of dividend and repayment of capital

The Company has only one class of equity shares having par value of Rs. 10 per share. Each Shareholder is eligible for one vote. The dividend proposed by the Board of Directors is subject to the approval of shareholders, except in case of interim dividend.

2. Segment Reporting

The Business of the company fall under a single segment i.e. "Development of Real Estate & Infrastructure". In view of the general classification notified by Central Government in exercise of power conferred u/s 211(3C) of Companies Act, 1956 for company operating in a single segment, the disclosure requirement as per AS - 17 on ..Segment Reporting is not applicable to the company. The Companys business is mainly concentrated in similar geographical, political and economical conditions; hence disclosure for Geographical segment is also not required.

3. Related Party Disclosures in accordance with AS -18

(i) Enterprises where control exists (A) Subsidiaries:-

Sl. No. Name of Company

1 Bahubali Tie-Up Private Limited

2 Baron Suppliers Private Limited

3 Bhagwati Builders & Development Private Limited

4 Bhagwati Plasto Works Private Limited

5 Headman Mercantile Private Limited

6 Kasturi Tie-Up Private Limited

7 Triton Commercial Private Limited

8 Rathi Ess En Finance Co. Private Limited

9 Raj Construction Projects Private Limited

10 RDB Legend Infrastructure Private Limited

11 RDB Realty Private Limited

(B) Partnership Firm:-

Sl. No. Name of the Firm

1 Bindi Developers

2 Unique RDB Realty

(ii) Other related parties with whom the company had transactions

(A) Key Management Personnel & their relatives:-

Sl. No. Name Designation /Relationship

1 Sunder Lal Dugar Chairman and Managing Director

2 Pradeep Kumar Pugalia Whole Time Director

(B) Enterprises over which Key Management Personnel/Major Shareholders ATheir Relatives have Significant Influence: -

Sl.No. Name of Enterprise

1 BFM Industries Limited

2 Humraj Commodities Private Limited

3 Khatod Investment & Finance Company Limited

4 Loka Properties Private Limited

5 Modak Vyapar Private Limited

6 NTC Industries Limited

7 Pyramid Sales Private Limited

8 MKN Investment Private Limited

9 Ranchhod Vanijya Private Limited

10 RD Devcon Private Limited

11 Regent Education & Reserch Centre

12 S.D.Infrastructure & Real Estate Private Limited

13 Samspa Expo Private Limited

14 Somani Estates Private Limited

15 Veekay Apartments Private Limited

4. In the opinion of the Board the Current Assets, Loans and Advances are not less than the stated value if realised in ordinary course of business. The provision for all known liabilities is adequate and not in excess of the amount reasonably necessary. There is no contingent liability except stated and informed by the Management.

5. Disclosure relating to Amalgamation as per AS-14

a) The scheme of amalgamation has taken place between Pincha Home Builders Private Limited (the Transferor Company) and RDB Realty & Infrastructure Ltd (the Transferee Company) both are dealing in construction activities.

b) The Effective date of Amalgamation is 1st April, 2012.

c) Pooling of interest method of accounting has been used to reflect the amalgamation.

d) The scheme of amalgamation of Pincha Home Builders Private Limited (the Transferor Company) and RDB Realty & Infrastructure Ltd (the Transferee Company) has been approved by the Honourable High Court at Calcutta. Hence, the effect of amalgamation has been incorporated in the books of accounts.

e) 64,83,400 Nos. of Equity Shares issued against 29,47,000 Nos. of Equity Shares of Pincha Home Builders Private Limited in the ration 1:2.2.

f) Net Assets Aquired amounted Rs. 15,28,18,275/-

6. Contingent Liabilities:-

a) On account of Guarantee Rs. 23,06,24,812/- (Previous Year Rs. 20,10,18,812/-) issued by the companys bankers to the Contractee for projects under EPC Division.

b) Rs. 32,07,510/- (Previous Year Rs. 32,07,510/-) on account of Service Tax collected from flat owners of Regent Enclave and deposited to the credit of central government. Flat owners filed a suit against company, claiming refund of Service Tax.

7. The figures of Previous Year have been recast, regrouped wherever considered necessary.

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Mar 31, 2013

1. SEGMENT REPORTING

The Business of the company fall under a single segment i.e. "Development of Real Estate & Infrastructure". In view of the general classification notified by Central Government in exercise of power conferred u/s 211(3C) of Companies Act, 1956 for company operating in a single segment, the disclosure requirement as per AS -17 on ''Segment Reporting'' is not applicable to the company. The Company''s business is mainly concentrated in similar geographical, political and economical conditions; hence disclosure for Geographical segment is also not required.

2. In the opinion of the Board the Current Assets, Loans and Advances are not less than the stated value if realised in ordinary course of business. The provision for all known liabilities is adequate and not in excess of the amount reasonably necessary. There is no contingent liability except stated and informed by the Management.

3. DISCLOSURE RELATING TO AMALGAMATION AS PER AS-14

a) The scheme of amalgamation has taken place between Pincha Home Builders Private Limited (the Transferor Company) and RDB Realty & Infrastructure Ltd (the Transferee Company) both are dealing in construction activities.

b) The Effective date of Amalgamation is 1st April, 2012.

c) Pooling of interest method of accounting has been used to reflect the amalgamation.

d) The scheme of amalgamation of Pincha Home Builders Private Limited (the Transferor Company) and RDB Realty & Infrastructure Ltd (the Transferee Company) has been approved by the Honourable High Court at Calcutta. Hence, the effect of amalgamation has been incorporated in the books of accounts.

e) 64,83,400 Nos. of Equity Shares issued against 29,47,000 Nos. of Equity Shares of Pincha Home Builders Private Limited in the ratio 1:2.2.

f) Net Assets Acquired amounted Rs. 15,28,18,275/-

4. CONTINGENT LIABILITIES

a) On account of Guarantee Rs. 20,10,18,812/- (Previous Year Rs. 24,06,73,812/-) issued by the company''s bankers to the Contractee for projects under EPC Division.

b) Rs. 32,07,510/- (Previous Year Rs. 32,07,510/-) on account of Service Tax collected from flat owners of Regent Enclave and deposited to the credit of central government. Flat owners filed a suit against Company, claiming refund of Service Tax.

5. The figures of Previous Year have been recast and regrouped wherever considered necessary.

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Mar 31, 2012

A. The rights, preferences & restrictions attaching to shares and restrictions on distribution of dividend and repayment of capital The Company has only one class of equity shares having par value of Rs10 per share. Each Shareholder is eligible for one vote. The dividend proposed by the Board of Directors is subject to the approval of shareholders, except in case of interim dividend.

*10750000 Shares were issued to the Shareholders of RDB Industries Ltd. (Now known as NTC Industries Ltd.) in pursuance of scheme of arrangement for demerger of Real Estate Division of RDB Industries Ltd. (Now known as NTC Industries Ltd.)

i) If the scheme of amalgamation of Pincha Home Builders Private Limited (The Transferor Company) and RDB Realty & Infrastructure Limited (The Transferee Company) is approved by Honourable High Court at Calcutta, company will issue 64,83,400 Nos. of Shares to the shareholders of the Pincha Home Builders Private Limited.

1. SEGMENT REPORTING

The Business of the Company fall under a single segment i.e., "Development of Real Estate & Infrastructure". In view of the general classification notified by Central Government in exercise of power conferred u/s 211(3C) of Companies Act, 1956 for Company operating in a single segment, the disclosure requirement as per AS - 17 on 'Segment Reporting' is not applicable to the Company. The Company's business is mainly concentrated in similar geographical, political and economical conditions; hence disclosure for Geographical segment is also not required.

2. In the opinion of the Board the Current Assets, Loans and Advances are not less than the stated value if realized in ordinary course of business. The provision for all known liabilities is adequate and not in excess of the amount reasonably necessary. There is no contingent liability except stated and informed by the Management.

3. The scheme of amalgamation of Pincha Home Builders Private Limited (the Transferor Company) and RDB Realty & Infrastructure Ltd (the Transferee Company) is pending for approval with the Honourable High Court at Calcutta before the finalization of accounts of company. Hence, effect of amalgamation is not incorporated.

4. CONTINGENT LIABILITIES

a) On account of Guarantee Rs24,06,73,812/- (Previous Year Rs15,51,32,746/-) issued by the Company's bankers to the Contractee for projects under EPC Division.

b) Rs32,07,510/- (Previous Year Rs32,07,510/-) on account of Service Tax collected from flat owners of Regent Enclave and deposited to the credit of Central Government. Flat owners filed a suit against Company, claiming refund of Service Tax.

5. The financial statements for the year ended 31st March 2011 had been prepared as per the then applicable, pre-revised Schedule VI to the Companies Act,1956. Consequent to the notification the revised Schedule VI under the Companies Act, 1956, the financial statement for the year ended 31st March 2012 are prepared as per revised Schedule VI. Accordingly, the previous year have also been reclassified / regrouped to confirm to this year's classification. The adoption of revised Schedule VI for previous year figures does not impact recognition and measurement principles followed for preparation of financial statements.

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Mar 31, 2010

1. PENDING ALLOTMENT OF EQUITY SHARES:-

Pursuant to the scheme of Demerger of the real estate undertaking from RDB Industries Limited, the Company will issue and allot its shares to the shareholders of RDB Industries Limited in the ratio of one equity share of face value of Rs.10/- each fully paid up in the company for every one equity shares of Rs.10/- each held by the shareholders of RDB Industries Limited. Pending allotment of these shares, the amount of Rs.107, 500, 000/- is disclosed as Share Capital - pending allotment. As per the scheme, RDB Realty & Infrastructure Limited ceased to be the subsidiary of the company.

2. EMPLOYEE DEFINED BENEFITS:-

a) Defined Contribution Plans: The Company has recognised an expense of Rs.321,851/- (Previous Year Rs. Nil) towards the defined contribution plans.

3. SEGMENT REPORTING:-

a) The Business of the company falls under a single segment i.e, Development of Real Estate & Infrastructure”. In view of the general classification issued by the Institute of Chartered Accountants of India for Companies operating in single segment, the disclosure requirement as per Accounting Standard -17 on “Segment Reporting” are not applicable to the company.

b) The Companys business is mainly concentrated in similar geographical, political and economical conditions; hence disclosure for Geographical segment is not required.

4. RELATED PARTY DISCLOSURES:-

In terms of Accounting Standard-18 are as under:

I) Enterprises where control exists (A) Subsidiaries:-

S. No. Name of Company

1 Bahubali Tie-Up Private Ltd.

2 Baron Suppliers Private Ltd.

3 Bhagwati Builders & Development Pvt. Ltd.

4 Bhagwati Plasto Works Private Ltd.

5 Headman Mercantile Private Ltd.

6 Kasturi Tie-Up Private Ltd.

7 Triton Commercial Private Ltd.

8 Rathi Ess En Finance Co. Private Ltd.

9 Raj Construction Projects Private Ltd.

Following companies ceased to be a subsidiary

1 Oswal Manufacturing Co. Private Ltd.*

*with effect from 30.07.2009

2 RD Devcon Pvt. Ltd.**

**with effect from 31.03.2010

(B) Partnership Firm:-

1Bindi Developers

II) Other related parties with whom the company had transactions:-

A) Key Management Personnel & their relatives:-

1 Sunder Lal Dugar Director

2 Ravi Prakash PinchaDirector

B) Enterprises over which Key Management Personnel/Major Shareholders/Their Relatives have Significant Influence: -

S.No. Name of Enterprise S.No. Name of Enterprise

1 Humraj Commodities Pvt. Ltd. 3 RD Motors Private Ltd.

2 Pyramid Sales Private Ltd. 4 Sri S.L.Dugar Charitable Trust 5 Khatod Investment & Finance Co. Ltd. 6 Somani Estates Pvt. Ltd.

7 Vitol Commercial Pvt. Ltd. 8 Veekay Appartment Pvt. Ltd.

9 Johri Towers Pvt. Ltd. 10RDB Builders Pvt. Ltd.

11 Rekha Benefit Trust 12Ankur Construction Pvt. Ltd.

5. The Company is in communication with its suppliers to ascertain the applicability of "The Micro, Small and Medium Enterprises Development Act, 2006". As on the date of this Balance Sheet the Company has not received any communications from any of its suppliers regarding the applicability of this Act to them.

6. Interest amounting to Rs.17, 010, 074/- paid on loans taken for real estate projects has been included in the value of inventory.

7. Quantitative Information:-

The management is of the view that the provisions of clause 3 (ii) of Schedule VI of Part II of the Companies Act, 1956 are not applicable to the company and as such no quantitative details are given.

8. Contingent Liabilities:-

a) On account of Guarantee Rs.940, 000 /- (Previous year Rs. Nil/-) issued by the companys bankers.

b) On account of corporate guarantee given to bank for secured loan taken by Associates and Subsidiary of the Company, Rs.564,700,000/- (Previous year Rs. Nil).

c) In view of the judgment of Honble Delhi High Court in case of Home Solutions Retail Private Limited & Others, the tenants have stopped re-imbursement of service tax on rental income. They may re-imburse the same in case the service tax liability finally arises in future. The nature of the service tax being an indirect tax, the company can claim the same from the tenants. Accordingly, bills for rental income are raised along with service tax, and the amount of service tax so charged in the bills is credited in "Service Tax on Rent" account and included in "Other Liabilities" shown under the head "Current Liabilities" in the Balance Sheet.

9. In the opinion of the Board the Current Assets, Loans and Advances are not less than the stated value if realised in ordinary course of business. The provision for all known liabilities is adequate and not in excess of the amount reasonably necessary. There is no contingent liability except stated and informed by the Management.

10. Figures for the Previous Year are not comparable due to demerger of "Real Estate Undertaking" of RDB Industries Ltd. with the company with effect from 01/04/2009 in terms of the scheme of arrangement as approved by the Honble High Court of Calcutta vide its order dated 12/04/2010 filed with the Registrar of Companies on 24/05/2010.

11. The figures of Previous Year have been recast and regrouped wherever considered necessary.