Notes to Accounts of SRS Real Infrastructure Ltd.

Mar 31, 2016

*During the year ended March 31, 2015, company has issued Bonus Equity Shares to the existing shareholders in the ratio of 1:1 on 19^th January 2015

*The written down value of Fixed Assets whose lives have expired as at April 1,2014 have been adjusted net of tax (''398,194), in pursuant to the enactment of the Companies Act 2013, the company has applied the estimated useful lives as specified in Schedule II.

* includes external development charges/ internal development charges and interest payable thereon amounting to ''6,18,78,489 (P.Y.''5,58,79,822)

# There are no amount due for payment to Investor Education and Protection Fund under section 124 of the Companies Act, 2013 at the year end.

##Out of which Rs,44,50,000/- has been paid subsequently up to the date of 8^th June, 2016 ###The amount has been fully paid subsequently up to the date of 8^th June, 2016

1. In the opinion of the management, the value on realization of current assets, loans and advances in the ordinary course of business would not be less than the amount at which they are stated in the Balance Sheet and provisions for all known liabilities have been made.

2. Estimated amount of contracts remaining to be executed on capital account and not provided for Rs,296,145,484/- (previous Year Rs,363,876,628/-).

3. Employee benefits

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. Gratuity scheme is unfunded and the Company has provided for leave encashment which is also unfunded.

The following tables summaries the components of net benefit expense recognized in the statement of profit and loss and amounts recognized in the Balance Sheet for the respective plans (as per Actuarial Valuation as on March 31, 2016).

4. Segment Reporting

The Company is engaged in the businesses of promotion, construction and development of integrated townships, residential and commercial complexes, manufacturing of RMC and trading in the various parts of the country. Thus, the Company has three reportable business segments. The Company operates in the same geographical segment.

Note: Previous year''s figures have been given in the bracket.

5. In accordance with Accounting Standard "AS-19 on Leases" the following disclosures in respect of operating leases is made as under:

A. Assets taken on operating lease:

a. The Company has taken an office on non-cancellable operating lease.

b. Lease payments recognized in statement of profit and loss amounting Rs,126,90,594 (previous year Rs,12,687,592)

c. Future commitments in respect of minimum lease payment payable in respect of aforesaid lease entered by the Company are as follows:

6. As per Accounting Standard-18, the Company’s related parties and transactions are disclosed below:

a) List of related parties and relationships, where control exists:

1) Holding Company

BTL Holding Company Limited (formerly known as BTL Investments & Securities Limited)

(SRS Holdings India limited merged with BTL Holding Company Limited)

2) Subsidiary Companies

i. SRS Real Estate Limited

ii. SRS Automotive Components Private Limited ( formerly known as SRS I-Tech Private Limited)

iii. SRS Retreat Services Limited

iv. Grand Reattach Limited (up to 26.02.2016)

v. SRS Mines Overseas Limited (Formerly known as Nav Nirman Realtech Limited)

vi. SRS Natural Resources Limited (formerly known as Arihant Dham Constructions Ltd.) (up to 17.08.2015)

3) Fellow Subsidiary Companies

i. SRS Limited

ii. SRS Healthcare and Research Centre Limited (Formerly known as Soaring Heights Limited)

4) Step Down Fellow Subsidiary Companies

i. Lotus SRS Buildtech Limited (up to 02.03.2016)

ii. SRS Mines & Minerals (FZC)

iii. SRS Worldwide (FZC)

5) Joint Venture

SRS Lotus Projects Private Limited

6) Associates

SRS Hi-tech Project Limited (up to 10.03.2015)*

b) Related parties and relationships with whom transactions have taken place during the year:

1) Key Management Personnel (KMP)

i. Dr. Anil Jindal Chairman

ii. Mr. Jitender Kumar Garg Managing Director

iii. Mr. Rajesh Singla Whole-Time Director & Chief Financial Officer

iv. Mrs. Shweta Marwah Company Secretary

2) Enterprises owned or significantly influenced by KMP and/or their relatives

i. SRS E-Retail Private limited

ii. SRS Global Securities Limited

iii. SRS Finance Limited

iv. SRS Knowledge & Technologies Limited (formerly known as SRS Professional Services limited) (up to 08.08.2015) * ceased to be associated w.e.f. 10.03.2015, hence transactions for the current year are not required to be disclosed.

7. Several High Courts have stayed the retrospective nature of amendment in The Payment of Bonus Act (Amendment), 2015 with effect from 1^st April, 2014. The Company has consequently not made any provision for Bonus for the year 2014-15 Rs,1,03,768/-in the current financial year.

8. Previous year figures have been regrouped/rearranged and reclassified wherever necessary.

9. All amounts in the financial statements are presented in Rupees and rounded off to nearest rupee.

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Mar 31, 2015

1. Overview of the Company

SRS Real Infrastructure Limited ('SRIL' or the 'Company'), was originally incorporated as Private Limited Company in the name & style of "Manu Leasing Private Limited" with the Registrar of Companies, NCT of Delhi & Haryana vide Certificate of Incorporation dated June 26, 1990. Subsequently, the Company was converted into Limited Company vide fresh Certificate of Incorporation dated December 30, 1994. Further the name of the Company was changed to "Manu Finlease Limited" pursuant to a fresh Certificate of Incorporation dated March 9, 1995 and again changed to "Manu Leasing Limited" on November 19, 1997. Subsequently, the name of the Company was changed to "SRS Real Infrastructure Limited" vide fresh Certificate of Incorporation dated March 28, 2007. The Company operates as a real estate developer primarily covering residential and commercial projects. The operations of the Company span all aspects of real estate development, from the identification and acquisition of land, to the planning, execution and marketing of the projects. The Company is also into trading of building material and manufacturing of RMC. The Company's registered office is situated at "SRS Tower ", 7th Floor, Near Metro Station Mewla Maharajpur, G.T Road, Faridabad-121003 , Haryana.

2. Terms and rights attached to equity shares

The Company has one class of equity shares having par value of Re. 1 each. Each shareholder is eligible for one vote per share held. The Company declares and pays dividend in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of shareholders in the ensuing annual general meeting

In the event of liquidation of the the Company, the holder of equity shares will be entitled to receive any of the remaining assets of the Company, after distribution of all preferential amounts, if any. The distribution will be in proportion to the number of equity shares held by the shareholders.

* During the year ended the company has increased its Authorised Equity share capital by 400,000,000 shares having face value of Re. 1 per share

** During the year ended March 31, 2015, the company has issued Bonus Equity Shares to the existing shareholders in the ratio of 1:1 on 19th January, 2015

3. Contingent liabilities not provided for in respect of:

Amount in Rs.

Particulars March 31, 2015 March 31, 2014

Corporate guarantees given for 2,891,400,000 3,764,900,000 subsidiary and group Company

-Contingent liablilities not provided 2,705,000 - for in respect of legal matters

Outstanding bank guarantee 157,208,600 90,842,500

4. In the opinion of the management, the value on realisation of current assets, loans and advances in the ordinary course of business would not be less than the amount at which they are stated in the Balance Sheet and provisions for all known liabilities have been made.

5. Estimated amount of contracts remaining to be executed on capital account and not provided for Rs. 363,876,628/- (previous Year Rs. 30,220,683/-).

6. Employee benefits

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. Gratuity scheme is unfunded and the Company has provided for leave encashment which is also unfunded.

The following tables summarise the components of net benefit expense recognised in the statement of profit and loss and amounts recognised in the Balance Sheet for the respective plans (as per Actuarial Valuation as on March 31, 2015).

7. Segment Reporting

The Company is engaged in the businesses of promotion, construction and development of integrated townships, residential and commercial complexes, manufacturing of RMC and trading in the various parts of the country. Thus, the Company has three reportable business segments. The Company operates in the same geographical segment.

8. In accordance with Accounting Standard "AS-19 on Leases" the following disclosures in respect of operating leases is made as under: A. Assets taken on operating lease:

a) The Company has taken an office on non-cancellable operating lease.

b) Lease payments recognised in statement of profit an loss amounting Rs. 12,687,592 (previous year Rs. 11,567,788)

c) Future commitments in respect of minimum lease payment payable in respect of aforesaid lease entered by the Company

9. As per Accounting Standard-18, the Company's related parties and transactions are disclosed below: a) List of related parties and relationships, where control exists:

a) Holding Company

BTL Holding Company Limited (formerly known as BTL Investments & Securities Limited) ( SRS Holdings India limited merged with BTL Holding Company Limited w.e.f. 18.07.2013)

b) Subsidiary Companies

i. SRS Real Estate Limited

ii. SRS Automotive Components Private Limited ( formerly known as SRS I-Tech Private Limited)

iii. SRS Retreat Services Limited

iv. SRS Event Management Limited ( Formerly known as Auspicious Real Estate Limited) (up to 23.07.2014)

v. Grand Realtech Limited (from 18.04.2013)

vi. SRS Mines Overseas Limited (Formerly known as Nav Nirman Realtech Limited) (from 27.04.2013)

vii. SRS Natural Resources Limited (formerly known as Arihant Dham Constructions Ltd.) (from 18.04.2013)

c) Fellow Subsidiary Companies

I. SRS Limited (from 18.07.2013)

ii. SRS Healthcare and Research Centre Ltd. (Formerly known as Soaring Heights Limited) (from 31.03.2014)

d) Step Down Fellow Subsidiary Companies

i. Lotus SRS Buildtech Limited (from 30.09.2014)

ii. SRS Mines & Minerals (FZC) (from 19.03.2015)

iii. SRS Worldwide (FZC) (from 12.11.2014)

iv. SRSE Retail Ltd. (From 03.12.2014 to 06.02.2015)

v. SRS Talkies Ltd. (From 03.12.2014 to 06.02.2015)

e) Joint Venture

i SRS Lotus Projects Private Limited

f) Associates

i SRS Hitech Projects Limited (up to 10.03.2015)

g) Related parties and relationships with whom transactions have taken place during the year:

I) Key Management Personnel (KMP)

i. Dr. Anil Jindal Chairman

ii. Mr. Jitender Kumar Garg Managing Director

iii. Mr. Bishan Bansal Whole-Time Director (up to 04.04.2014)

iv. Mr. Rajesh Singla Whole-Time Director & Chief Financial Officer

II) Enterprises owned or significantly influenced by KMP and/or their relatives

i. SRS E-Retail Ltd.

ii. SRS Professional Services Ltd.

iii. SRS Global Securities Limited

iv. SRS Finance Limited

v. SRS Portfolio Ltd. (upto 04.04.2014)

10. The unsecured loan is given to SRS Natural Resources Ltd. for general Corporate purpose and carries an interest rate of 15% p.a.

11. The useful lives of fixed assets have been revised in accordance with the Schedule II to the Companies Act 2013 which is applicable from accounting periods commencing on or after 1st April 2014. Accordingly, an amount of Rs.7,73,310/- (net of deferred tax of Rs.398,194) representing assets beyond their useful life as on 1st April 2014 has been charged to Retained Earnings. In respect of the remaining assets, an additional depreciation amounting to Rs.8,037,737/- has been charged to Statement of Profit and Loss based on the residual useful life.

12. Previous year figures have been regrouped/rearranged and reclassified wherever necessary.

13. All amounts in the financial statements are presented in Rupees and rounded off to nearest rupee.

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Mar 31, 2013

1 Overview of the Company

SRS Real Infrastructure Limited (''SRIL'' or the ''Company''), was originally incorporated as Private Limited Company in the name & style of "Manu Leasing Private Limited" with the Registrar of Companies, NCT of Delhi & Haryana vide Certificate of Incorporation dated June 26, 1990. Subsequently, the Company was converted into Limited Company vide fresh Certificate of Incorporation dated December 30, 1994. Further the name of the Company was changed to "Manu Finlease Limited" pursuant to a fresh Certificate of Incorporation dated March 9, 1995 and again changed to "Manu Leasing Limited" on November 19, 1997. Subsequently, the name of the Company was changed to "SRS Real Infrastructure Limited" vide fresh Certificate of Incorporation dated March 28, 2007. The Company operates as a real estate developer primarily covering residential and commercial projects. The operations of the Company span all aspects of real estate development, from the identification and acquisition of land, to the planning, execution and marketing of the projects. The Company is also into trading of building material and manufacturing of RMC. The Company''s registered office is situated at SRS Multiplex, Top Floor, City Centre, Sector-12, Faridabad-121007.

2 In the opinion of the management, the value on realisation of current assets, loans and advances in the ordinary course of business would not be less than the amount at which they are stated in the Balance Sheet and provisions for all known liabilities have been made.

3 Estimated amount of contracts remaining to be executed on capital account and not provided for Rs. 17,368,700 (previous Year Rs. 115,651,703).

4 Employee benefits

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. Gratuity scheme is unfunded and the Company has provided for leave encashment which is also unfunded.

The following tables summarise the components of net benefit expense recognised in the statement of profit and loss and amounts recognised in the Balance Sheet for the respective plans (as per Actuarial Valuation as on March 31, 2013).

5 Segment Reporting

The Company is engaged in the businesses of promotion, construction and development of integrated townships, residential and commercial complexes, manufacturing of RMC and trading in the various parts of the country. Thus, the Company has three reportable business segments. The Company operates in the same geographical segment.

6 In accordance with Accounting Standard "AS-19 on Leases" the following disclosures in respect of operating leases is made as under:

A. Assets taken on operating lease:

a) The Company has taken an office on non-cancellable operating lease.

b) Lease payments recognised in statement of profit and loss amounting Rs.10,786,652 (previous year Rs.1,525,550)

c) Future commitments in respect of minimum lease payment payable in respect of aforesaid lease entered by the Company are as follows:

7 As per Accounting Standard-18, the Company''s related parties and transactions are disclosed below:

a) List of related parties and relationships, where control exists:

1) Subsidiary Companies i. SRS Real Estate Ltd.

ii. SRS I-Tech Pvt. Ltd.

iii. SRS Retreat Services Ltd.

2) Joint Ventures

i. SRS Lotus Projects Pvt. Ltd.

ii. SRS RMC Gurgaon (Partnership Firm)

b) Related parties and relationships with whom transactions have taken place during the year:

1) Key Management Personnel (KMP)

i. Dr. Anil Jindal Chairman and Managing Director

ii. Mr. Bishan Bansal Whole-Time Director

iii. Mr. Jitender Kumar Garg Joint Managing Director

2) Enterprises owned or significantly influenced by KMP and/or their relatives i. SRS Limited

ii. BTL Investments and Securities Ltd.

iii. SRS Holdings India Ltd.

iv. SRS Professional Services Ltd.

8 On May 09, 2012 the Income Tax Authorities conducted a search and seizure on the Company under section 132 of the Income Tax Act, 1961. Company has not received any further notice/ demand from the Income Tax Authorities in respect of search and seizure conducted and accordingly, no provision in that regard has been made in the financial statements.

9 The Company had started accepting Public Deposits under the Fixed Deposits Scheme w.e.f April 26, 2012 under two different schemes i.e. non-cumulative (A) and cumulative deposits (B) bearing different interest rates based on the period of the deposits. The total deposits accepted by the company during the FY 2012-2013 is:-

10. Under the Income Tax Act, 1961, for domestic Transfer Pricing transaction introduced with effect from April 1, 2012, the Company is required to use specified methods for computing arm''s length price in relation to domestic transactions with its associate enterprises. Further, company is required to maintain prescribed information and documents in relating to such transactions. The appropriate method to be adopted will depend on the nature of transactions/class of transactions, class of associated persons, functions performed and other factors, which have been prescribed. The Company is in the process of conducting a transfer pricing study for the current financial year. Based on the preliminary study, the management is of the view that the same would not have a material impact on the tax expenses provided for in these financial statements. Accordingly, this financial statement does not include any adjustments for the transfer pricing implications, if any.

11 Previous year figures have been regrouped/rearranged and reclassified wherever necessary.

As per our report of even date attached.

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Mar 31, 2012

* BTL Imp ex India Ltd has been merged with SRS Holdings India Ltd. (Formerly known as BTL Industries Ltd.) w.e.f. 1st September 2011 vide order of Hon'ble High Court dated 16th March, 2012.

Cash Credit facility from Oriental Bank of Commerce and Bank of India (Under Consortium arrangement) of Rs. 69,90,56,388 (Previous year Rs. 70,17,29,085) is secured by first pari-passu charge on the Stock in trade, book debts and all other current assets of trading division. Th is facility is further secured by Equitable Mortgage of certain immoveable properties belonging to the company and its subsidiary company and the Personal Guarantees of the Directors and Corporate Guarantee of SRS Retreat Services Ltd. Bank overdraft facility from Union Bank of India of Rs. Nil (Previous Year Rs. 20,35,965) is secured by pledge of Fixed Deposit.

1. Contingent Liabilities not provided for in respect of

(AMOUNT IN ' Lac)

As at 31.03.2012 Aa at 31.03.2011 (Rs.) (Rs.)

Corporate Guarantees 26,644 .00 Lac 20,644.00 Lac

Outstanding Bank Guarantee 1,889.57 Lac 2,832.70 Lac

2. In the opinion of the management, the value on realization of current assets, loans & advances in the ordinary course of business would not be less than the amount at which they are stated in the Balance Sheet and provisions for all known liabilities have been made.

3. Estimated amount of contracts remaining to be executed on capital account and not provided for Rs. 1,156.52 lacs (Previous Year Rs. 1,865.65 lacs).

4. The company has entered into Collaboration Agreement with certain land-owners whereas the possession has been delivered to the company for development & construction of said land and marketing thereof. The payments towards cost of land are being made in accordance with respective Collaboration Agreements.

b) No interest payments have been made during the year.

c) The above information and that given in Trade Payables in Note No.9 regarding dues to Micro Enterprises and Small Enterprises has been determined to the extent such parties have been identified on the basis of information available with the company.

The requisite particulars in respect of Deferred Credit Payment are as under!

5. Employee Benefits

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. Gratuity scheme was funded up to the previous year. The Company has also provided for Leave Encashment which is unfunded.

The following tables summarize the components of net benefit expense recognized in the Profit and Loss Account and amounts recognized in the Balance Sheet for the respective plans (as per Actuarial Valuation as on M arch 31, 2012).

6. Segment Reporting

The Company is engaged in the businesses of promotion, construction and development of integrated townships, residential and commercial complexes, and wholesale trading in the various parts of the country. Thus, the Company has three reportable business segments. The Company operates in the same geographical segment.

Note! Previous year s figures have been given in the bracket.

7. Borrowing Costs

During the period, the Company has capitalized Rs. 409.23 L acs (PY. Rs. 397.99 lacs) on Capital work in progress and Rs. 663.16 L acs (PY Rs. 658.11 lacs) on project in progress in accordance with the applicable Accounting Standard 16 — Borrowing Costs .

8. Related Party Transactions

As per Accounting Standard-18, the Company's related parties and transactions are disclosed below!

a. List of related parties & relationships, 'where control exists!

1) Subsidiary Companies

i. SRS Real Estate Ltd.

ii. SRS I-Tech Pvt. Ltd.

iii. SRS Retreat Services Ltd.

2) Subsidiary Companies up to (31.03.2011) ***

i. Bh avani Realbuild Pvt. Ltd.

ii. Bright Infrabuild Pvt. Ltd.

iii. Dimension Infrastructure Pvt. Ltd.

iv. Mehar Builders Pvt. Ltd.

v. Modern Ash iana Builders Pvt. Ltd.

vi. Mounthill Builders Pvt. Ltd.

vii. Rebnoor Infrabuild Pvt. Ltd.

viii. Skyhigh Colonizers Pvt. Ltd.

ix. Glory Buildcon Pvt. Ltd.

x. Haryana Infracon Pvt. Ltd.

xi. Dawn Developers Pvt. Ltd.

xii. SPS Buildcon Ltd.

xiii. SRS Manufacturers Pvt. Ltd.

all these companies are merged with SRS Retreat Services Ltd . w.e.f. 01.04.2011 in pursuance with the Scheme of Amalgamation.

3) Joint Ventures

i. SRS Lotus Projects Pvt. Ltd.

ii. SRS RMC Gurgaon

b) Related parties & relationships 'with who^ transactions have taken place during the year

9. Previous year figures have been regrouped/rearranged and reclassified wherever necessary.

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Mar 31, 2011

1. Contingent Liabilities not provided forinrespectof:

Particulars As at As at

31.03.2011 31.03.2010

(Rs.) (Rs.)

Corporate Guarantees 20,644.00 Lac 18,338.00 Lac

Outstanding Bank 2,832.70 Lac 988.47 Lac

Guarantee

2. In the opinion of the management, the value on realization of current assets, loans & advances in the ordinary course of business would not be less than the amount at which they are stated in the Balance Sheet and provisions for all known liabilities has been made.

3. Estimated amount of contracts remaining to be executed on capital account and not provided for Rs. 1865.65 lacs (Previous Year Rs. 813.84 lacs).

4. The company has entered into "Collaboration Agreement" with certain land-owners whereas the possession has been delivered to the company for development & construction of said land and marketing thereof. The payments towards cost of land are being made in accordance with respective Collaboration Agreements.

b) Nointerest payments have been made during the year.

c) The above information and that given in "Current Liabilities" in Schedule No.12 regarding dues to Micro Enterprises and Small Enterprises has been determined to the extent such parties have been identified on the basis of information available with the company.

5. Capital WorkinProgress includes:

i. advances to vendors/contractors of Rs.8,80,46,873 (Previous Year Rs.21,34,46,037/-)

6. Employee Benefits

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. Gratuity scheme was funded up to the previous year. During the financial year 2009-10, company had applied for cancellation of the gratuity fund and subsequently received back the amount of fund created with LIC. The Company has also provided for Leave Encashment which is unfunded.

The following tables summarize the components of net benefit expense recognized in the Profit and Loss Account and amounts recognized in the Balance Sheet for the respective plans (as per Actuarial Valuation as on March 31, 2011).

7. Borrowing Costs

During the period, Company has capitalized Rs.397.99 (P.Y. Rs.404.39 lacs) on Capital work in progress and Rs.658.11 (P.Y. Rs.670.14 lacs) on project in progress in accordance with the applicable Accounting Standard 16-"Borrowing Costs".

8. Segment Reporting

The Company is engaged in the businesses of promotion, construction and development of integrated townships, residential and commercial complexes, and wholesale trading in the various parts of the country. Thus, the Company has three reportable business segments. The Company operates in the same geographical segment.

9. Related Party Transactions

As per Accounting Standard-18, the Company's related parties and transactions are disclosed below:

a) List of related parties& relationships, where control exists:

1) Subsidiary Companies

i. Bhavani Realbuild P. Ltd.

ii. Bright Infrabuild Pvt. Ltd.

iii. Dimension Infrastructure Pvt Ltd.

iv. Mehar Builders Pvt. Ltd.

v. Modern Ashiana Builders Pvt. Ltd.

vi. Mounthill Builders Pvt. Ltd.

vii. Rebnoor Infrabuild Pvt. Ltd.

viii. Skyhigh Colonizers Pvt. Ltd.

ix. Glory Buildcon Pvt. Ltd.

x. SRS Real Estate Ltd.

xi. SRS I-Tech Pvt. Ltd.

xii. Haryana Infracon Pvt. Ltd.

xiii. Dawn Developers Pvt. Ltd.

xiv. SPS Buildcon Ltd.

xv. SRS Retreat Services Ltd.

xvi. SRS Manufacturers Pvt. Ltd. (from 10.09.2009)

2) Joint Ventures

i. SRS Lotus Projects Pvt. Ltd.

ii. SRS RMC Gurgaon

b) Related parties & relationships with whom transactions have taken place during the year:

1) Key Management Personnel(KMP)

i. Mr. Bishan Bansal - Whole-Time Director

ii. Mr. Jitender Kumar Garg - Whole-Time Director (w.e.f. 10.03.2010)

2) Enterprises ownedorsignificantly influencedbyKMP and/or their Relatives

i. SRS Limited

ii. BTL Impex (India) Ltd.

iii. BTL Investments & Securities Ltd.

iv. BTL Portfolio Ltd.

v. SRS Global Securities Ltd. (Formerly SRS Housing Finance Ltd.)

vi. SRS Portfolio Ltd.

1. Previous year figures have been regrouped/rearranged and reclassified wherever necessary.

2. Schedules 1 to 22 are annexed to and form an integral part of the Balance Sheet as at 31st March, 2011 and Profit & Loss Account for the year ended on that date.

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Mar 31, 2010

1. Contingent Liabilities not provided for in respect of:

Particulars As at 31.03.2010 As at 31.03.2009 (Rs.) (Rs.)

Corporate Guarantees 18,338.00 Lac 3,495.00 Lac

Outstanding Bank Guarantee 988.47 Lac 988.47 Lac

2. In the opinion of the management, the value on realization of current assets, loans & advances in the ordinary course of business would not be less than the amount at which they are stated in the Balance Sheet and provisions for all known liabilities has been made.

3. Estimated amount of contracts remaining to be executed on capital account and not provided for Rs. 813.84 lacs (Previous Year Rs. 1,134.23 lacs).

4. The company has entered into "Collaboration Agreement" with certain land-owners whereas the possession has been delivered to the company for development & construction of said land and marketing thereof. The payments towards cost of land are being made in accordance with respective Collaboration Agreements.

5. a) Amount due to Micro Enterprises and Small Enterprises by the Company, comprises of the following:

b) No interest payments have been made during the year.

c) The above information and that given in "Current Liabilities" in Schedule No.12 regarding dues toMicro Enterprisesand Small Enterprises has been determined to the extent such parties have been identified on the basis of information available with the company.

6. Employee Benefits

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. Gratuity scheme was funded up to the previous year. During the financial year company had applied for cancellation of the gratuity fund and subsequently received back the amount of fund created with LIC. The Company has also provided for Leave Encashment which is unfunded.

The following tables summarize the components of net benefit expense recognized in the Profit and Loss Account and amounts recognized in the Balance Sheet for the respective plans (as per Actuarial Valuation as on March 31,2010).

7. Borrowing Costs

During the period, Company has capitalized Rs. 404.39 lacs (P.Y. 329.08 lacs) on Capital work in progress and Rs. 670.14 lacs (P.Y. Rs. 528.87 lacs) on project in progress in accordance with the applicable Accounting Standard 16 - "Borrowing Costs".

8. Segment Reporting

The Company is engaged in the businesses of promotion, construction and development of integrated townships, residential and commercial complexes, and wholesale trading in the various parts of the country. Thus, the company has two reportable business segments. The company operates in the same geographical segment.

9. Related Party Transactions

As per Accounting Standard-18 issued by the Institute of Chartered Accountants of India, the Companys related parties and transactions are disclosed below:

a) List of related parties & relationships, where control exists:

1) Subsidiary Companies

i. Akriti Realtech Pvt Ltd. (Upto 10.08.2009)

ii. BhavaniRealbuildP.Ltd.

iii. Bright Infrabuild Pvt. Ltd.

iv. Dimension Infrastructure Pvt Ltd.

v. Mehar Builders Pvt Ltd.

vi. Modern Ashiana Builders Pvt Ltd.

vii. Mounthill Builders Pvt Ltd.

viii. Rebnoor Infrabuild Pvt Ltd.

ix. Skyhigh Colonizers Pvt Ltd.

x. Glory Buildcon Pvt. Ltd.

xi. SRS Real Estate Ltd.

xii. SRSI-TechPvt.Ltd.

xiii. HaryanaInfraconPvt.Ltd.

xiv. Dawn Developers Pvt. Ltd.

xv. SPS Buildcon Ltd.

xvi. SRS Retreat Services Ltd.

xvii. SRS Manufacturers Pvt. Ltd. (from 10.09.2009)

b) Related parties & relationships with whom transactions have taken place during the year:

1) Key Management Personnel (KMP)

i. Mr.BishanBansal - Whole-time Director

ii. Mr.J.K.Garg - Whole-time Director (w.e.f. 10.03.2010)

iii. Mr.RajeshMangla - Whole-time Director (upto 30.10.2009)

2) Enterprises owned or significantly influenced by KMP and/or their Relatives

i. SRS Ltd.

ii. BTLImpex (India) Ltd.

iii. BTL Investments & Securities Ltd.

iv. BTL Portfolio Ltd.

v. SRS Housing Finance Ltd.

10. Previous year figures have been regrouped/rearranged and reclassified wherever necessary.

11. Schedules 1 to 24 are annexed to and form an integral part of the Balance Sheet as at 31st March, 2010 and Profit & Loss Account for the year ended on that date.

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Mar 31, 2009

1. Contingent Liabilities not provided for in respect of :

Particulars As at 31.03.2009 As at 31.03.2008 (Rs.) (Rs.)

Corporate Guarantees 3495.00 Lac 3495.00 Lac

Outstanding Bank Guarantee 988.47 Lac

2. In the opinion of the management, the value on realization of current assets, loans & advances in the ordinary course of business would not be less than the amount at which they are stated in the Balance Sheet and provisions for all known liabilities has been made.

3. Estimated amount of contracts remaining to be executed on capital account and not provided for Rs.1, 134.23 lacs (Previous Year Rs. Nil).

4. The company has entered into “Collaboration Agreement” with certain land-owners whereas the possession has been delivered to the company marketing thereof. The payments towards cost of land are being made in accordance with respective Collaboration Agreements.

5. The information regarding Micro Enterprises and Small Enterprises as required to be disclosed under Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company.

6. Details of Investment sold and purchased during the year:for development & construction of said land and

7. Capital work in progress includes:

I. advances to vendors/contractors of Rs. 21, 01, 46,037/- (Previous Year Rs. Nil)

ii. pre-operative expenses of Rs. 6, 87, 28,555/- (Previous Year Rs. 2, 54, 18,397/-) as detailed below :

8. Deferred Tax Assets and Liabilities

9. Employee Benefits

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. Gratuity scheme is funded. The Company has also provided for Leave Encashment which is unfunded.

The following tables summarize the components of net benefit expense recognized in the profit and loss account and amounts recognized in the balance sheet for the respective plans (as per Actuarial Valuation as on March 31, 2009).

10. Borrowing Costs

During the year, Company has capitalized Rs. 329.08 lacs (P.Y. Nil) on Capital work in progress and Rs. 528.87 lacs (P.Y. Rs. 26.91 lacs) on project in progress in accordance with the applicable Accounting Standard 16 – "Borrowing Costs".

11. Segment Reporting

The Company is engaged in the businesses of promotion, construction and development of integrated townships, residential and commercial complexes, and trading of building material in the various parts of the country. Thus, the company has two reportable business segments. The company operates in the same geographical segment.

12. Related Party Transactions

As per Accounting Standard-18 issued by the Institute of Chartered Accountants of India, the Companys related parties and transactions are disclosed below:

a. List of related parties & relationships, where control exists:

1) Subsidiary Companies

i. Akriti Realtech Pvt Ltd.

ii. Bhavani Realbuild P. Ltd.

iii. Bright Infrabuild Pvt. Ltd.

iv. Dimension Infrastructure Pvt Ltd.

v. Mehar Builders Pvt Ltd.

vi. Modern Ashiana Builders Pvt Ltd.

vii. Mounthill Builders Pvt Ltd.

viii. Rebnoor Infrabuild Pvt Ltd.

ix. Skyhigh Colonizer Pvt Ltd.

x. Glory Buildcon Pvt. Ltd.

xi. SRS Real Estate Ltd.

b. Related parties & relationships with whom transactions have taken place during the year:

1) Key Management Personnel (KMP)

i. Dr. Anil Jindal - Chairman and Managing Director

ii. Mr. Rajesh Singla - Executive Director

iii. Mr. Nanak Chand Tayal - Executive Director

iv. Mr. Rajesh Mangla - Executive Director

2) Enterprises owned or significantly influenced by KMP and/or their Relatives

i. SRS International Ltd. *

ii. SRS Realtech Pvt. Ltd *

iii. SRS Developers P. Ltd. *

iv. SRS Realbuild Pvt. Ltd *

v. SRS Manufacturers Pvt. Ltd. *

vi. SRS Entertainment & Retail Ltd.

* Related party relation with these companies has ceased during the current financial year.

13. "Earning per Share" computed in accordance with Accounting Standard - 20 issued by the Institute of Chartered Accountants of India.

14. Directors Remuneration:

15. Auditors remuneration (including service tax)

16. Additional information pursuant to the provisions of para 3, 4C and 4D of part II of Schedule VI to the Companies Act, 1956, as certified by the management (to the extent applicable):

17.Previous year figures have been regrouped / rearranged and reclassified wherever necessary.

18.Schedules A to X are annexed to and form an integral part of the Balance Sheet as at 31st March, 2009 and Profit & Loss accounts for the year ended on that date.

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Mar 31, 2008

1. Contingent Liabilities not provided for in respect of :

Particulars As at 31.03.2008 As at 31.03.2007

(Rs.) (Rs.)

Corporate Bank Guarantees 3495 lacs NIL

Other - -

2. In the opinion of the management, the value on realization of current assets, loans & advances in the ordinary course of business would not be less than the amount at which they are stated in the Balance Sheet and provisions for all known liabilities has been made.

3. The company has entered into "Collaboration Agreement" with certain land-owners whereas the possession has been delivered to the company for development & construction of said land and marketing thereof. The payments towards cost of land are being made in accordance with respective Collaboration Agreements.

4. The information regarding Micro Enterprises and Small Enterprises as required to be disclosed under Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company.

5. Events Occurring After Balance Sheet Date

During the year the company has transferred a portion of FSI related to one of its underdevelopment project through M/s SRS Real Estate Ltd., a company holding the license for the project and a subsidiary of the reporting company, to M/s Mariners Welfare Society for an aggregate consideration of Rs. 3495.14 lacs, out of which Rs. 880 lacs only has been realized. However, serious disputes arose and the cheques issued by M/s Mariners Welfare Society amounting to Rs. 1100 lacs had bounced during the month of May, 2008 and balance payment has been denied by the party. A civil suit has been filed in the Civil Court, Faridabad against the party in July, 2008.

After taking into account the events occurring after balance sheet date and owing to uncertainty over the realization of the balance consideration, the management has considered that the recognition of revenue beyond the amount actually received would not be prudent and be contrary to Accounting Standard 9 and accounting policy of the company. Accordingly, the management has now decided to give effect of the same in the balance sheet as on 31st March 2008 itself and recognize the revenue only in proportion of and to the extent of realized revenue of Rs. 880 lacs.

6. Employee Benefits

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The Company has also provided for Leave Encashment which is unfunded.

The following tables summarize the components of net benefit expense recognized in the profit and loss account and amounts recognized in the balance sheet for the respective plans (as per Actuarial Valuation as on March 31, 2008).

Being first year of adoption of Accounting Standard 15 (Revised 2005) previous years figures and disclosures required under Para 120 (n) have not been furnished / disclosed.

7. Borrowing Costs

The Company has capitalized Rs. 26.91 lacs (P/Y "Nil") during the year relating to the Projects under construction in accordance with the applicable Accounting Standard 16 "Borrowing Costs".

8. Segment Reporting

The Company is engaged in the businesses of promotion, construction and development of integrated townships, residential and commercial complexes, and trading of building material in the various parts of the country. Thus, the company has two reportable business segments. The company operates in the same geographical segment.

9. Related Party Transactions

As per Accounting Standard-18 issued by the Institute of Chartered Accountants of India, the Companys Related parties and transactions are disclosed below:

a. List of related parties & relationships, where control exists:

1) Subsidiary Companies

i. Akriti Realtech Pvt Ltd. (From 14-12-2007)

ii. Bhavani Realbuild P. Ltd. (From 14-12-2007) iii. Bright Infrabuild Pvt. Ltd. (From 14-12-2007)

iv. Dimension Infrastructure Pvt Ltd. (From 14-12-2007)

v. Haryana Infracon Pvt. Ltd. (From 14-12-2007)

vi. Mehar Builders Pvt Ltd. (From 14-12-2007)

vii. Modern Ashiana Builders Pvt Ltd. (From 14-12-2007)

viii.Mounthill Builders Pvt Ltd. (From 14-12-2007)

ix. Rebnoor Infrabuild Pvt Ltd. (From 14-12-2007)

x. Skyhigh Colonizers Pvt Ltd. (From 14-12-2007)

xi. Dawn Developers Pvt. Ltd. (From 14-12-2007)

xii. Glory Buildcon Pvt. Ltd. (From 14-12-2007)

xiii. SPS Buildcon Ltd. (From 17-12-2007)

xiv. SRS Retreat Services Ltd. (From 28-12-2007)

xv. SRS Real Estate Ltd. (From 21-01-2008)

b. Related parties & relationships with whom transactions have taken place during the year:

1) Key Management Personnel (KMP)

i. Dr. Anil Jindal - Chairman and Managing Director

ii. Mr. Rajesh Singla - Executive Director

iii. Mr. Nanak Chand Tayal - Executive Director

2) Enterprises owned or significantly influenced by KMP and/or their Relatives

i. SRS Developers P. Ltd.

ii. SRS Realtech Pvt. Ltd

iii. SRS Realbuild Pvt. Ltd

iv. SRS Manufacturers Pvt. Ltd.

v. SRS International Ltd.

10. Additional information pursuant to the provisions of para 3, 4C and 4D of part II of Schedule VI to the Companies Act, 1956, as certified by the management (to the extent applicable):

*Note: It is not possible to give quantitative details of all expenses since there are numerous items and many expenses related to government charges and services. The information has been provided to the extent feasible.

11. Previous period figures have been regrouped / rearranged and reclassified wherever necessary.

12. All amounts in the financial statements are presented in Rupees.

13. Schedules A to V are annexed to and form an integral part of the Balance Sheet as at 31st March, 2008 and Profit & Loss Account for the year ended on that date.