Notes to Accounts of Arihant Foundations & Housing Ltd.

Mar 31, 2025

p) Provisions and contingencies
Provisions

A provision is recognised if, as a result of a past event, the
Company has a present legal or constructive obligation that
is reasonably estimable, and it is probable that an outflow of
economic benefits will be required to settle the obligation. If
the effect of the time value of money is material, provisions are
determined by discounting the expected future cash flows
at a pre-tax rate that reflects current market assessments of
the time value of money and the risks specific to the liability
The increase in the provision due to the passage of time is
recognised as interest expense.

Contingent liabilities

A contingent liability is a possible obligation that arises
from past events whose existence will be confirmed by the
occurrence or non-occurrence of one or more uncertain
future events not wholly within the control of the Company
or a present obligation that is not recognised because it is
not probable that an outflow of resources will be required to
settle the obligation or it cannot be measured with sufficient
reliability. The Company does not recognise a contingent
liability but discloses its existence in the financial statements.

Contingent assets

Contingent assets are neither recognised nor disclosed.
However, when realisation of income is virtually certain,
related asset is recognised."

q) Financial instruments
Financial assets

Initial recognition and measurement

Financial assets (other than trade receivables) are recognized
when the Company becomes a party to the contractual
provisions of the financial instrument and are measured
initially at fair value adjusted for transaction costs, except
for those carried at fair value through statement of profit and
loss which are measured initially at fair value. Subsequent
measurement of financial assets is described below. Trade
receivables are recognized at their transaction price as the
same do not contain significant financing component.

Subsequent measurement

For the purpose of subsequent measurement, financial assets
are classified and measured based on the entity''s business
model for managing the financial asset and the contractual
cash flow characteristics of the financial asset at:

a. Amortized cost

b. Fair Value Through Other Comprehensive Income
(FVTOCI) or

c. Fair Value Through Profit or Loss (FVTPL)

All financial assets are reviewed for impairment at least at
each reporting date to identify whether there is any objective
evidence that a financial asset or a group of financial assets
is impaired. Different criteria to determine impairment are
applied for each category of financial assets, which are
described below.

(i) Financial asset at amortised cost

Includes assets that are held within a business model
where the objective is to hold the financial assets to collect
contractual cash flows and the contractual terms gives rise
on specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding.

These assets are measured subsequently at amortized cost
using the effective interest method. The loss allowance at
each reporting period is evaluated based on the expected
credit losses for next 12 months and credit risk exposure. The
Company shall also measure the loss allowance for a financial
instrument at an amount equal to the lifetime expected
credit losses if the credit risk on that financial instrument has
increased significantly since initial recognition.

(ii) Financial assets at Fair Value Through Other
Comprehensive Income (FVTOCI)

Includes assets that are held within a business model where
the objective is both collecting contractual cash flows and
selling financial assets along with the contractual terms
giving rise on specified dates to cash flows that are solely
payments of principal and interest on the principal amount
outstanding. At initial recognition, the Company, based on its
assessment, makes an irrevocable election to present in other
comprehensive income the changes in the fair value of an
investment in an equity instrument that is not held for trading.

These elections are made on an instrument-by instrument (i.e.
share-by-share) basis. If the Company decides to classify an
equity instrument as at FVTOCI, then all fair value changes
on the instrument, excluding dividends, impairment gains or
losses and foreign exchange gains and losses, are recognized
in other comprehensive income. There is no recycling of the
amounts from OCI to profit or loss, even on sale of investment.
The dividends from such instruments are recognized in
statement of profit and loss.

The fair value of financial assets in this category are
determined by reference to active market transactions or
using a valuation technique where no active market exists.

The loss allowance at each reporting period is evaluated
based on the expected credit losses for next 12 months and
credit risk exposure. The Company shall also measure the
loss allowance for a financial instrument at an amount equal
to the lifetime expected credit losses if the credit risk on that
financial instrument has increased significantly since initial
recognition. The loss allowance shall be recognized in other
comprehensive income and shall not reduce the carrying
amount of the financial asset in the balance sheet.

(iii) Financial assets at Fair Value Through Profit or Loss
(FVTPL)

Financial assets at FVTPL include financial assets that are
designated at FVTPL upon initial recognition and financial
assets that are not measured at amortized cost or at fair value
through other comprehensive income. All derivative financial
instruments fall into this category, except for those designated
and effective as hedging instruments, for which the hedge
accounting requirements apply Assets in this category are
measured at fair value with gains or losses recognized in

statement of profit and loss. The fair value of financial assets
in this category are determined by reference to active market
transactions or using a valuation technique where no active
market exists.

The loss allowance at each reporting period is evaluated
based on the expected credit losses for next 12 months and
credit risk exposure. The Company shall also measure the
loss allowance for a financial instrument at an amount equal
to the lifetime expected credit losses if the credit risk on that
financial instrument has increased significantly since initial
recognition. The loss allowance shall be recognized in the
statement of profit and loss.

De-recognition of financial assets

A financial asset (or, where applicable, a part of a financial
asset or part of a group of similar financial assets) is primarily
derecognized (i.e. removed from the Company’s standalone
balance sheet) when:

a. The rights to receive cash flows from the asset have
expired, or

b. The Company has transferred its rights to receive cash
flows from the asset or has assumed an obligation to pay
the received cash flows in full without material delay to
a third party under a ‘pass-through’ arrangement and
either (i) the Company has transferred substantially all
the risks and rewards of the asset, or (ii) the Company
has neither transferred nor retained substantially all
the risks and rewards of the asset, but has transferred
control of the asset.

When the Company has transferred its rights to receive
cash flows from an asset or has entered into a pass-through
arrangement, it evaluates if and to what extent it has retained
the risks and rewards of ownership. When it has neither
transferred nor retained substantially all of the risks and
rewards of the asset, nor transferred control of the asset, the
Company continues to recognise the transferred asset to the
extent of the Company’s continuing involvement. In that case,
the Company also recognises an associated liability. The
transferred asset and the associated liability are measured
on a basis that reflects the rights and obligations that the
Company has retained.

Continuing involvement that takes the form of a guarantee
over the transferred asset is measured at the lower of the
original carrying amount of the asset and the maximum
amount of consideration that the Company could be required
to repay.

Financial liabilities

Initial recognition and measurement

Financial liabilities are classified, at initial recognition, as
financial liabilities at fair value through profit or loss, loans
and borrowings, payables, or as derivatives designated as
hedging instruments in an effective hedge, as appropriate.

All financial liabilities are recognised initially at fair value and, in
the case of loans and borrowings and payables, net of directly
attributable transaction costs.

The Company’s financial liabilities include trade and other
payables, loans and borrowings including, financial guarantee
contracts.

Subsequent measurement

The measurement of financial liabilities depends on their
classification, as described below:

Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include
financial liabilities held for trading and financial liabilities
designated upon initial recognition as at fair value through
profit or loss. Financial liabilities are classified as held for
trading if they are incurred for the purpose of repurchasing
in the near term. This category also includes derivative
financial instruments entered into by the Company that are
not designated as hedging instruments in hedge relationships
as defined by Ind AS 109 Financial Instruments.

Gains or losses on liabilities held for trading are
recognised in the profit or loss.

Financial liabilities designated upon initial recognition at fair
value through profit or loss are designated as such at the
initial date of recognition, and only if the criteria in Ind AS 109
are satisfied. For liabilities designated as FVTPL, fair value
gains/losses attributable to changes in own credit risk are
recognized in OCI. These gains/loss are not subsequently
transferred to P&L. However, the Company may transfer the
cumulative gain or loss within equity All other changes in fair
value of such liability are recognised in the statement of profit
or loss. The Company has not designated any financial liability
as at fair value through profit and loss.

Loans and borrowings

This is the category most relevant to the Company. After
initial recognition, interest-bearing loans and borrowings
are subsequently measured at amortised cost using the EIR
method. Gains and losses are recognised in profit or loss
when the liabilities are derecognised as well as through the
EIR amortisation process.

Amortised cost is calculated by taking into account any
discount or premium on acquisition and fees or costs that are
an integral part of the EIR. The EIR amortisation is included as
finance costs in the statement of profit and loss.

Derecognition of financial liabilities

A financial liability is derecognised when the obligation under
the liability is discharged or cancelled or expires. When an
existing financial liability is replaced by another from the same
lender on substantially different terms, or the terms of an
existing liability are substantially modified, such an exchange
or modification is treated as the derecognition of the original
liability and the recognition of a new liability. The difference
in the respective carrying amounts is recognised in the
statement of profit and loss.

Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net
amount is reported in the balance sheet if there is a currently
enforceable legal right to offset the recognised amounts and

there is an intention to settle on a net basis, to realise the
assets and settle the liabilities simultaneously.

r) Impairment of financial assets

In accordance with Ind AS 109 Financial Instruments, the
Company applies expected credit loss (ECL) model for
measurement and recognition of impairment loss for financial
assets.

The Company tracks credit risk and changes thereon for
each customer. For recognition of impairment loss on other
financial assets and risk exposure, the Company determines
that whether there has been a significant increase in the credit
risk since initial recognition. If credit risk has not increased
significantly, 12-month ECL is used to provide for impairment
loss.

ECL is the difference between all contractual cash flows that
are due to the Company in accordance with the contract and
all the cash flows that the entity expects to receive (i.e., all cash
shortfalls), discounted at the original EIR. When estimating
the cash flows, an entity is required to consider:

- All contractual terms of the financial instrument over the
expected life of the financial instrument. However, in rare
cases when the expected life of the financial instrument
cannot be estimated reliably, then the entity uses the
remaining contractual term of the financial instrument.

- Cash flows from the sale of collateral held or other credit
enhancements that are integral to the contractual terms.

The Company uses default rate for credit risk to determine
impairment loss allowance on portfolio of its trade receivables.

Trade receivables

The Company applies approach permitted by Ind AS 109
Financial Instruments, which requires expected lifetime
losses to be recognised from initial recognition of receivables.

Other financial assets

For recognition of impairment loss on other financial assets
and risk exposure, the Company determines whether there
has been a significant increase in the credit risk since initial
recognition and if credit risk has increased significantly,
impairment loss is provided.

s) Fair value measurement

Fair value is the price that would be received to sell an
asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date. The
fair value measurement is based on the presumption that the
transaction to sell the asset or transfer the liability takes place
either:

- In the principal market for the asset or liability, or

- In the absence of a principal market, in the most
advantageous market for the asset or liability

The principal or the most advantageous market must be
accessible by the Company.

The fair value of an asset or a liability is measured using the
assumptions that market participants would use when pricing
the asset or liability, assuming that market participants act in
their economic best interest.

A fair value measurement of a non-financial asset takes into
account a market participant’s ability to generate economic
benefits by using the asset in its highest and best use or by
selling it to another market participant that would use the
asset in its highest and best use.

The Company uses valuation techniques that are appropriate
in the circumstances and for which sufficient data are
available to measure fair value, maximising the use of relevant
observable inputs and minimising the use of unobservable
inputs.

All assets and liabilities for which fair value is measured
or disclosed in the financial statements are categorised
within the fair value hierarchy, described as follows, based
on the lowest level input that is significant to the fair value
measurement as a whole:

Level 1: Quoted (unadjusted) market prices in active
markets for identical assets or liabilities

Level 2: Valuation techniques for which the lowest level input
that is significant to the fair value measurement is
directly or indirectly observable

Level 3: Valuation techniques for which the lowest level input
that is significant to the fair value measurement is
unobservable

t) Cash and cash equivalents

Cash and cash equivalent in the balance sheet comprise
cash at banks and on hand and short-term deposits with an
original maturity of three months or less, which are subject to
an insignificant risk of changes in value.

For the purpose of the statement of cash flows, cash and
cash equivalents consist of cash and short-term deposits, as
defined above, as they are considered an integral part of the
Company’s cash management.

u) Segment reporting

Operating segments are reported in a manner consistent with
the internal reporting provided to the chief operating decision
maker. The Company is primarily engaged in the business
of real estate development and related activities including
construction which constitutes its single reportable segment.

v) Earnings/(Loss) per Share (EPS)

Basic EPS are calculated by dividing the net profit or loss
for the period attributable to equity shareholders by the
weighted average number of equity shares outstanding
during the period. Partly paid equity shares are treated as a
fraction of an equity share to the extent that they are entitled
to participate in dividends relative to a fully paid equity share
during the reporting period. The weighted average number

of equity shares outstanding during the period is adjusted for
events such as bonus issue that have changed the number of
equity shares outstanding, without a corresponding change in
resources.

Diluted EPS amounts are calculated by dividing the profit
attributable to equity holders of the Company (after adjusting
for interest on the convertible preference shares, if any) by
the weighted average number of equity shares outstanding
during the year plus the weighted average number of equity
shares that would be issued on conversion of all the dilutive
potential equity shares into equity shares. Dilutive potential
equity shares are deemed converted as of the beginning

of the period, unless issued at a later date. Dilutive potential
equity shares are determined independently for each period
presented.

w) Cash flow statement

Cash flows are reported using the indirect method, whereby
profit/(loss) before tax is adjusted for the effects of
transactions of non-cash nature and any deferrals or accruals
of past or future receipts or payments. In the cash flow
statement, cash and cash equivalents includes cash in hand,
cheques on hand, balances with banks in current accounts
and other short- term deposits with original maturities of 3
months or less, as applicable.

a) Issue of Equity Shares on Preferential Basis:

During the year, the Company issued 13,65,624 equity shares of face value '' 10 each at a premium of '' 470 per share on a
preferential basis, as per the approval of the shareholders and in compliance with SEBI (ICDR) Regulations, 2018.

b) Terms/right attached to equity shares

The Company has issued only one class of equity shares having a face value of '' 10 per share. Each holder of equity shares is
entitled to one vote per share. The Company declares and pays dividends in Indian Rupees. The dividend proposed by the Board
of Directors, if any is subject to the approval of the shareholders in the ensuing Annual General Meeting, except interim dividend,
which can be approved by the Board of Directors.

In the event of liquidation, the holders of equity shares will be entitled to receive 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.

a) Provision for employee benefits
i) Gratuity

Gratuity is payable to all the members at the rate of 15 days salary for each year of service. In accordance with applicable Indian
laws, the Company provides for gratuity, a defined benefit retirement plan (“the Gratuity Plan”) covering eligible employees.
The Gratuity Plan provides for a lump sum payment to vested employees on retirement (subject to completion of five years of
continuous employment), death, incapacitation or termination of employment that are based on last drawn salary and tenure of
employment. Liabilities with regard to the Gratuity Plan are determined by actuarial valuation on the reporting date.

The estimates of rate of escalation in salary considered in actuarial valuation takes into account inflation, seniority, promotion
and other relevant factors including supply and demand in the employment market. The above information is certified by the
actuary The discount rate is based on the prevailing market yields of Indian government securities as at the balance sheet date
for the estimated term of the obligations.

The significant actuarial assumptions for the determination of the defined benefit obligation are the attrition rate, discount
rate and the long-term rate of compensation increase. The calculation of the net defined benefit liability is sensitive to these
assumptions. The following table summarises the effects of changes in these actuarial assumptions on the defined benefit
liability at 31 March 2025.

35. FAIR VALUE MEASUREMENT

Fair value measurement hierarchy

The Company records certain financial assets and financial
liabilities at fair value on a recurring basis. The Company
determines fair values based on the price it would receive
to sell an asset or pay to transfer a liability in an orderly
transaction between market participants at the measurement
date and in the principal or most advantageous market for
that asset or liability.

The Company holds certain fixed income investments and
other financial assets such as loans, deposits etc. which
must be measured using the fair value hierarchy and related
valuation methodologies. The guidance specifies a hierarchy
of valuation techniques based on whether the inputs to each
measurement are observable or unobservable. Observable
inputs reflect market data obtained from independent
sources, while unobservable inputs reflect the Company’s

assumptions about current market conditions. The fair
value hierarchy also requires an entity to maximize the use
of observable inputs and minimize the use of unobservable
inputs when measuring fair value.

Financial assets and financial liabilities measured at fair value
in the balance sheet are grouped into three Levels of fair value
hierarchy. These levels are based on the observability of
significant inputs to the measurement, as follows:

> Level 1: Quoted prices (unadjusted) in active markets for
identical assets or liabilities.

> Level 2: Inputs other than quoted prices included within
Level 1 that are observable for the asset or liability either
directly or indirectly

> Level 3: Unobservable inputs for the asset or liability

36. NATURE AND EXTENT OF RISKS
ARISING FROM FINANCIAL INSTRUMENTS
AND RESPECTIVE FINANCIAL RISK
MANAGEMENT OBJECTIVES AND
POLICIES

The Company’s principal financial liabilities comprise of loans
and borrowings, trade and other payables, and financial
guarantee contracts. The main purpose of these financial
liabilities is to finance the Company’s operations and to
provide guarantees to support its and group companies
operations. The Company’s principal financial assets include
loans, trade and other receivables, cash and short-term
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 the Group treasury team that
advises on financial risks and the appropriate financial risk
governance framework in accordance with the Company’s

policies and risk objectives. All derivative activities for
risk management purposes are carried out by Group
Treasury Team that have the appropriate skills, experience
and supervision. It is the Group’s policy that no trading in
derivatives for speculative purposes may be undertaken. The
Board of Directors review and agree on policies for managing
each of these risks, which are summarised below.

a) Market risk

The Company is exposed to market risk through its use of
financial instruments and specifically to currency risk, interest
rate risk and certain other price risks, which result from both
its operating and investing activities.

b) 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 are managed by
borrowing at fixed interest rates. During the year Company did
not have any floating rate borrowings.

c) Credit risk

Credit risk is the risk that a counterparty fails to discharge an obligation to the Company. The Company is exposed to this
risk for various financial instruments, for example trade receivables, placing deposits, investment in mutual funds etc. the
Company’s maximum exposure to credit risk is limited to the carrying amount of financial assets recognized at 31 March 2018,
as summarised below:

The Company continuously monitors defaults of customers
and other counterparties and incorporates this information
into its credit risk controls. The Company’s policy is to transact
only with counterparties who are highly creditworthy which
are assessed based on internal due diligence parameters.

In respect of trade receivables, the Company is not exposed to
any significant credit risk exposure to any single counterparty
or any group of counterparties having similar characteristics.
Based on historical information about customer default rates
management consider the credit quality of trade receivables
that are not past due or impaired to be good.

The credit risk for cash and cash equivalents, fixed deposits
are considered negligible, since the counterparties are
reputable banks with high quality external credit ratings.

Other financial assets mainly comprises of security deposits
which are given to land owners or other governmental
agencies in relation to contracts executed and are assessed
by the Company for credit risk on a continous basis.

d) Liquidity risk

Liquidity risk is that the Company might be unable to meet
its obligations. The Company manages its liquidity needs
by monitoring scheduled debt servicing payments for long¬
term financial liabilities as well as forecast cash inflows
and outflows due in day-to-day business. The data used
for analysing these cash flows is consistent with that used
in the contractual maturity analysis below. Liquidity needs
are monitored in various time bands, on a day-to-day and
week-to-week basis, as well as on a monthly, quarterly, and
yearly basis depending on the business needs. Net cash
requirements are compared to available borrowing facilities in
order to determine headroom or any shortfalls. This analysis
shows that available borrowing facilities are expected to be
sufficient over the lookout period.

The Company''s objective is to maintain cash and marketable
securities to meet its liquidity requirements for 30-day periods
at a minimum. This objective was met for the reporting periods.

The Company considers expected cash flows from financial assets in assessing and managing liquidity risk, in particular its cash
resources and trade receivables. The Company’s existing cash resources and trade receivables significantly exceed the current
cash outflow requirements. Cash flows from trade receivables are all contractually due within six months except for retention
and long term trade receivables which are governed by the relevant contract conditions.

The Company’s objective is to maintain a balance between continuity of funding and flexibility through the use of bank overdrafts,
and short-term borrowings. The Company assessed the concentration of risk with respect to refinancing its debt and concluded
it to be low. The Company has access to a sufficient variety of sources of funding and debt maturing within 12 months can be
rolled over with existing lenders.

36. EVENTS AFTER THE REPORTING PERIOD

No adjusting or significant non-adjusting events have occurred between the reporting date (31 March 2025) and the date of
authorization.

iii) In continuation to inspection made u/s. 209A of the Companies Act, 1956; the proceedings filed u/s. 58A, 299 and 295 are
under process. The Company has applied for compounding application for the same on 19.01.2015

38. SEGMENT REPORTING

The Company is primarily in the business of real estate development and related activities including construction. Major exposure
is to residential and commercial construction and development of IT parks. Further majority of the business conducted is within
the geographic boundaries of India.

In view of the above, in the opinion of the Management and based on the organizational and internal reporting structure, the
Company''s business activities as described above are subject to similar risks and returns. Further, since the business activities
undertaken by the Company are within India, in the opinion of the Management, the environment in India is considered to have
similar risks and returns. Consequently the Company''s business activities primarily represent a single business segment.
Similarly this business operations in India represent a single geographical segment.

In terms of our report attached

For B.P. JAIN & Co For and on behalf of the Board of Directors of

Chartered Accountants Arihant Foundations and Housing Limited

Firm''s Registration No.: 050105S

Devendra Kumar Bhandari Kamal Lunawath Vimal Lunawath

Partner Managing Director Whole Time Director/CFO

Membership No. 208862 DIN: 00087324 DIN: 00586269

UDIN: 25208862BMJUYL7587

Arun Rajan Mary Belinda Jyotsna

Chief Executive Officer Company Secretary

Membership No. A63097

Place: Chennai Place: Chennai

Date: 30-05-2025 Date: 30-05-2025

---

Mar 31, 2024

The carrying amount of the current trade receivable is considered a reasonable approximation of fair value as is expectedtobecollectedwithintwelvemonths,such thattheeffect of any difference between the effective interest rate applied and the estimated current market rate is not significant.

Customercreditrisk ismanagedbasedon theCompany''sestablished policy, procedures and control relating to customercreditriskmanagement, pursuant to which outstanding customer receivables are regularly monitored by the management. Outstanding customer receivables are regularly monitored by the management to ensure the risk of credit loss is minimal. Credit quality of a customer is assessed based on historical information in relation to pattern of collections, defaults and credit worthiness of the customer.

Inassessing therecoverabilityofdeferredincometaxassets, management considers whether it is more likely than not that some portion or all of the deferred income tax assets will be realized. The ultimate realization of deferred income taxassetsis dependentuponthegenerationoffuture taxable income during the periods in which the temporary differences become deductible. The amount of the deferred income tax assets considered realizable, however, could be reduced in the near term if estimates of future taxable income during the carry forward period are reduced.

a. Thereis no change in issuedandsubscribedshare capitalduring the year.

b. Terms/right attached to equity shares

The Company has issued only one class of equity shares having a face value of ^ 10 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian Rupees. Thedividendproposedby theBoardofDirectors,ifany,issubject to the approval of the shareholders in the ensuingAnnualGeneralMeeting,exceptinterimdividend,which can be approved by the Board of Directors. In theevent ofliquidation, the holders of equity shares will be entitled to receive 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.

d. There were no shares issued pursuant to contract without payment being received in cash, allotted as fully paid up by way of bonus issues and buy back of shares during the last 5 years immediately preceding 31 March 2023.

e. Capital management policies and procedures

For the purpose of the Company''s capital management, capital includes issued equity capital and all other equity reserves attributable to the equity holders plus its borrowings and cash credit facility, if any, less cash and cash equivalents as presented on the face of the balance sheet.

The Company manages the capital structure and makes adjustments to it in the light of changes in economic conditions and the risk characteristics of the underlying assets. The amounts managed as capital by the Company for the reporting periods under review are summarized as follows:

Provision foremployeebenefits i) Gratuity

Gratuity is payable to all the members at the rate of 15 days salary for each year of service. In accordance with applicable Indian laws, the Company provides for gratuity, a defined benefit retirement plan (“the Gratuity Plan”) covering eligible employees.The GratuityPlanprovidesfor alumpsumpaymenttovested employees on retirement (subject to completion of five years of continuous employment), death, incapacitation or termination of employment that are based on last drawn salary andtenure of employment. Liabilitieswithregard tothe Gratuity Plan are determined by actuarial valuation on the reporting date.

The estimates of rate of escalation in salary considered in actuarial valuation takes into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is certified by the actuary. The discount rate is based on the prevailing market yields of Indian government securities as at the balance sheet date for the estimated term of the obligations.

Provisions (Continued)

The significant actuarial assumptions for the determination of the defined benefit obligation are the attrition rate, discount rate and the long-term rate of compensation increase. The calculation of the net defined benefit liability is sensitive to these assumptions. The following table summarises the effects of changes in these actuarial assumptions on the defined benefit liability at 31 March 2023..

* There are no micro and small enterprises, as defined under the provisions of Micro, Small and Medium Enterprises Development Act 2006, to whom the Company owes dues as at the reporting date. The micro and small enterprises have been identified by the management on the basis of information available with the Company and have been relied upon by the auditors.

34 Fair value measurement Fair value measurement hierarchy

The Company records certain financial assets and financial liabilities at fair value on a recurring basis. The Company determines fair values based on the price it would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date and in the principal or most advantageous market for that asset or liability.

The Company holds certain fixed income investments and other financial assets such as loans, deposits etc. which must be measured using the fair value hierarchy and related valuation methodologies. The guidance specifies a hierarchy of valuation techniques based on whether the inputs to each measurement are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company''s assumptions about current market conditions. The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.

Financial assets and financial liabilities measured at fair value in the balance sheet are grouped into three Levels of fair value hierarchy. These levels are based on the observability of significant inputs to the measurement, as follows:

> Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities

> Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly

> Level 3: Unobservable inputs for the asset or liability.

The following table shows the Levels within the hierarchy of financial and non-financial assets and liabilities measured at fair value on a recurring basis at 31 March 2024, 31 March 2023.:

The fair values of the Company''s interest-bearing borrowings and loans are determined under amortised cost method using discount rate that reflects the issuer''s borrowing rate as at the end of the reporting period. These rates are considered to reflect the market rate of interest and hence the carrying value are considered to be at fair value.

35. Nature and extent of risks arising from financial instruments and respective financial risk management objectives and policies

The Company''s principal financial liabilities comprise of loans and borrowings, trade and other payables, and financial guarantee contracts. The main purpose of these financial liabilities is to finance the Company''s operations and to provide guarantees to support its and group companies operations. The Company''s principal financial assets include loans, trade and other receivables, cash and short-term deposits that derive directly from its operations.

35, Nature and extent of risks arising from financial instruments and respective financial risk management objectives and policies (Continued)

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 the Group treasury team that advises on financial risks and the appropriate financial risk governance framework in accordance with the Company''s policies and risk objectives. All derivative activities for risk management purposes are carried out by Group Treasury Team that have the appropriate skills, experience and supervision. It is the Group''s policy that no trading in derivatives for speculative purposes may be undertaken. The Board of Directors review and agree on policies for managing each of these risks, which are summarised below.

a) Market risk

The Company is exposed to market risk through its use of financial instruments and specifically to currency risk, interest rate risk and certain other price risks, which result from both its operating and investing activities.

b) 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 are managed by borrowing at fixed interest rates. During the year Company did not have any floating rate borrowings.

c) Credit risk

Credit risk is the risk that a counterparty fails to discharge an obligation to the Company. The Company is exposed to this risk for various financial instruments, for example trade receivables, placing deposits, investment in mutual funds etc. the Company''s maximum exposure to credit risk is limited to the carrying amount of financial assets recognized at 31 March 2018,assummarisedbelow:

The Company continuously monitors defaults of customers and other counterparties and incorporates this information into its credit risk controls. The Company''s policy is to transact only with counterparties who are highly creditworthy which are assessed based on internal due diligence parameters.

In respect of trade receivables, the Company is not exposed to any significant credit risk exposure to any single counterparty or any group of counterparties having similar characteristics. Based on historical information about customer default rates management consider the credit quality of trade receivables that are not past due or impaired to be good.

The credit risk for cash and cash equivalents, fixed deposits are considered negligible, since the counterparties are reputable banks with high quality external credit ratings.

Other financial assets mainly comprises of security deposits which are given to land owners or other governmental agencies in relation to contracts executed and are assessed by the Company for credit risk on a continous basis.

d) Liquidity risk

Liquidity risk is that the Company might be unable to meet its obligations. The Company manages its liquidity needs by monitoring scheduled debt servicing payments for long-term financial liabilities as well as forecast cash inflows and outflows due in day-to-day business. The data used for analysing these cash flows is consistent with that used in the contractual maturity analysis below. Liquidity needs are monitored in various time bands, on a day-to-day and week-to-week basis, as well as on a monthly, quarterly, and yearly basis depending on the business needs. Net cash requirements are compared to available borrowing facilities in order to determine headroom or any shortfalls. This analysis shows that available borrowing facilities are expected to be sufficient over the lookout period.

The Company''s objective is to maintain cash and marketable securities to meet its liquidity requirements for 30-day periods at a minimum. This objective was met for the reporting periods.

The Company considers expected cash flows from financial assets in assessing and managing liquidity risk, in particular its cash resources and trade receivables. The Company''s existing cash resources and trade receivables significantly exceed the current cash outflow requirements. Cash flows from trade receivables are all contractuallyduewithinsixmonthsexceptforretention and long term trade receivables which are governed by the relevant contract conditions.

The Company''s objective is to maintain a balance between continuity of funding and flexibility through the use of bank overdrafts, and short-term borrowings. The Company assessed the concentration of risk with respect to refinancing its debt and concluded it to be low. The Company has access to a sufficient variety of sources of funding and debt maturing within 12 months can be rolled over with existing lenders.

36. Eventsafterthereporting period

No adjusting or significant non-adjusting events have occurred between the reporting date (31 March 2024) and the dateofauthorization..

37. Contingent liabilities, commitments andguarantees

Contingent liabilities

	As at 31-Mar-24	As at 31-Mar-23
i)ThecasespendingbeforetheCIT Appeals of Income tax are as follows
AY 1999-2000	-	76.39
AY 2011-2012	71.83	71.83
ii) The cases pending before the High Court of Madras are as follows
AY 2005-2006	53.24	53.24
AY 2007-2008	557.62	557.62
AY 2004-2005	13.72	13.72
AY 2005-2006	95.58	95.58

iii) In continuation to inspection made u/s. 209A of the Companies Act, 1956; the proceedings filed u/s. 58A, 299 and 295 are under process. The Company has applied for compounding application for the same on 19.01.2015

38. Segment reporting

The company is primarily in the business of real estate development and related activities including construction. Major exposure is to residential and commercial construction and development of IT parks. Further majority of the business conducted is within the geographic boundaries of India.

In view of the above, in the opinion of the Management and based on the organizational and internal reporting structure, the company''s business activities as described above are subject to similar risks and returns. Further, since the business activities undertaken by the company are within India, in the opinion of the Management, the environment in India is considered to have similar risks and returns. Consequently the company''s business activities primarily represent a single business segment. Similarly, this business operations in India represent a single geographical segment.

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Mar 31, 2023

p) Provisions and contingencies

Provisions

A provision is recognised if, as a result of a past event, the Company has a present legal or constructive obligation that is reasonably estimable, and it is probable that an outflow of economic benefits will be required to settle the obligation. If the effect of the time value of money is material, provisions are determined by discounting the expected future cash flows at a pretax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The increase in the provision due to the passage of time is recognised as interest expense.”

Contingent liabilities

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that is not recognised because it is not probable that an outflow of resources will be required to settle the obligation or it cannot be measured with sufficient reliability. The Company does not recognise a contingent liability but discloses its existence in the financial statements.

Contingent assets

Contingent assets are neither recognised nor disclosed. However, when realisation of income is virtually certain, related asset is recognised.

q) Financial instruments Financial assets

Initial recognition and measurement

Financial assets (other than trade receivables) are recognized when the Company becomes a party to the contractual provisions of the financial instrument and are measured initially at fair value adjusted for transaction costs, except for those carried at fair value through statement of profit and loss which are measured initially at fair value. Subsequent measurement of financial assets is described below. Trade receivables are recognized at their transaction price as the same do not contain significant financing component.

Subsequent measurement

For the purpose of subsequent measurement, financial assets are classified and measured based on the entity''s business model for managing the financial asset and the contractual cash flow characteristics of the financial asset at:

a. Amortized cost

b. Fair Value Through Other Comprehensive Income (FVTOCI) or

c. Fair Value Through Profit or Loss (FVTPL)

All financial assets are reviewed for impairment at least at each reporting date to identify whether there is any objective evidence that a financial asset or a group of financial assets is impaired. Different criteria to determine impairment are applied for each category of financial assets, which are described below.

(i) Financial asset at amortised cost

Includes assets that are held within a business model where the objective is to hold the financial assets to collect contractual cash flows and the contractual terms gives rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

These assets are measured subsequently at amortized cost using the effective interest method. The loss allowance at each reporting period is evaluated based on the expected credit losses for next 12 months and credit risk exposure. The Company shall also measure the loss allowance for a financial instrument at an amount equal to the lifetime expected credit losses if the credit risk on that financial instrument has increased significantly since initial recognition. “

(ii) Financial assets at Fair Value Through Other Comprehensive Income (FVTOCI)

Includes assets that are held within a business model where the objective is both collecting contractual cash flows and selling financial assets along with the contractual terms giving rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. At initial recognition, the Company, based on its assessment, makes an irrevocable election to present in other comprehensive income the changes in the fair value of an investment in an equity instrument that is not held for trading. These elections are made on an instrument-by instrument (i.e. share-by-share) basis. If the Company decides to classify an equity instrument as at FVTOCI, then all fair value changes on the instrument, excluding dividends, impairment gains or losses and foreign exchange gains and losses, are recognized in other comprehensive income. There is no recycling of the amounts from OCI to profit or loss, even on sale of investment. The dividends from such instruments are recognized in statement of profit and loss.

The fair value of financial assets in this category are determined by reference to active market transactions or using a valuation technique where no active market exists.

The loss allowance at each reporting period is evaluated based on the expected credit losses for next 12 months and credit risk exposure. The Company shall also measure the loss allowance for a financial instrument at an amount equal to the lifetime expected credit losses if the credit risk on that financial instrument has increased significantly since initial recognition. The loss allowance shall be recognized in other comprehensive income and shall not reduce the carrying amount of the financial asset in the balance sheet.

(iii) Financial assets at Fair Value Through Profit or Loss (FVTPL)

Financial assets at FVTPL include financial assets that are designated at FVTPL upon initial recognition and financial assets that are not measured at amortized cost or at fair value through other comprehensive income. All derivative financial instruments fall into this category, except for those designated and effective as hedging instruments, for which the hedge accounting requirements apply. Assets in this category are measured at fair value with gains or losses recognized in statement of profit and loss. The fair value of financial assets in this category are determined by reference to active market transactions or using a valuation technique where no active market exists.

The loss allowance at each reporting period is evaluated based on the expected credit losses for next 12 months and credit risk exposure. The Company shall also measure the loss allowance for a financial instrument at an amount equal to the lifetime expected credit losses if the credit risk on that financial instrument has increased significantly since initial recognition. The loss allowance shall be recognized in the statement of profit and loss.

De-recognition of financial assets

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily derecognized (i.e. removed from the Company''s standalone balance sheet) when:

a. The rights to receive cash flows from the asset have expired, or

b. The Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a ''pass-through'' arrangement; and either (i) the Company has transferred substantially all the risks and rewards of the asset, or (ii) the Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

When the Company has transferred its rights to receive cash flows from an asset or has entered into a pass-through arrangement, it evaluates if and to what extent it has retained the risks and rewards of ownership. When it has neither transferred nor retained substantially all of the risks and rewards of the asset, nor transferred control of the asset, the Company continues to recognise the transferred asset to the extent of the Company''s continuing involvement. In that case, the Company also recognises an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the Company has retained.

Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original carrying amount of the asset and the maximum amount of consideration that the Company could be required to repay.

Financial liabilities

Initial recognition and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and borrowings, payables, or as derivatives designated as hedging instruments in an effective hedge, as appropriate.

All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs.

The Company''s financial liabilities include trade and other payables, loans and borrowings including, financial guarantee contracts.

Subsequent measurement

The measurement of financial liabilities depends on their classification, as described below:

Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated upon initial recognition as at fair value through profit or loss. Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the near term. This category also includes derivative financial instruments entered into by the Company that are not designated as hedging instruments in hedge relationships as defined by Ind AS 109 Financial Instruments.

Gains or losses on liabilities held for trading are recognised in the profit or loss.

Financial liabilities designated upon initial recognition at fair value through profit or loss are designated as such at the initial date of recognition, and only if the criteria in Ind AS 109 are satisfied. For liabilities designated as FVTPL, fair value gains/ losses attributable to changes in own credit risk are recognized in OCI. These gains/ loss are not subsequently transferred to P&L. However, the Company may transfer the cumulative gain or loss within equity. All other changes in fair value of such liability are recognised in the statement of profit or loss. The Company has not designated any financial liability as at fair value through profit and loss.

Loans and borrowings

This is the category most relevant to the Company. After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the EIR method. Gains and losses are recognised in profit or loss when the liabilities are derecognised as well as through the EIR amortisation process. Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included as finance costs in the statement of profit and loss.

Derecognition of financial liabilities

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original

liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the statement of profit and loss.

Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to realise the assets and settle the liabilities simultaneously.

r) Impairment of financial assets

In accordance with Ind AS 109 Financial Instruments, the Company applies expected credit loss (ECL) model for measurement and recognition of impairment loss for financial assets.

The Company tracks credit risk and changes thereon for each customer. For recognition of impairment loss on other financial assets and risk exposure, the Company determines that whether there has been a significant increase in the credit risk since initial recognition. If credit risk has not increased significantly, 12-month ECL is used to provide for impairment loss.

ECL is the difference between all contractual cash flows that are due to the Company in accordance with the contract and all the cash flows that the entity expects to receive (i.e., all cash shortfalls), discounted at the original EIR. When estimating the cash flows, an entity is required to consider:

- All contractual terms of the financial instrument over the expected life of the financial instrument. However, in rare cases when the expected life of the financial instrument cannot be estimated reliably, then the entity uses the remaining contractual term of the financial instrument.

- Cash flows from the sale of collateral held or other credit enhancements that are integral to the contractual terms.

The Company uses default rate for credit risk to determine impairment loss allowance on portfolio of its trade receivables. Trade receivables

The Company applies approach permitted by Ind AS 109 Financial Instruments, which requires expected lifetime losses to be recognised from initial recognition of receivables.”

Other financial assets

For recognition of impairment loss on other financial assets and risk exposure, the Company determines whether there has been a significant increase in the credit risk since initial recognition and if credit risk has increased significantly, impairment loss is provided.”

s) Fair value measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:

- In the principal market for the asset or liability, or

- In the absence of a principal market, in the most advantageous market for the asset or liability The principal or the most advantageous market must be accessible by the Company.

The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest.

A fair value measurement of a non-financial asset takes into account a market participant''s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

Level 1 - uuotea (unadjusted) market prices in active markets for identical assets or liabilities

Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable

Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable

t) Cash and cash equivalents

Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term deposits with an original maturity of three months or less, which are subject to an insignificant risk of changes in value. For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and short-term deposits, as defined above, as they are considered an integral part of the Company''s cash management.

u) Segment reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The Company is primarily engaged in the business of real estate development and related activities including construction which constitutes its single reportable segment.

v) Earnings/ (Loss) per Share (EPS)

Basic EPS are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. Partly paid equity shares are treated as a fraction of an equity share to the extent that they are entitled to participate in dividends relative to a fully paid equity share during the reporting period. The weighted average number of equity shares outstanding during the period is adjusted for events such as bonus issue that have changed the number of equity shares outstanding, without a corresponding change in resources.

Diluted EPS amounts are calculated by dividing the profit attributable to equity holders of the Company (after adjusting for interest on the convertible preference shares, if any) by the weighted average number of equity shares outstanding during the year plus the weighted average number of equity shares that would be issued on conversion of all the dilutive potential equity shares into equity shares. Dilutive potential equity shares are deemed converted as of the beginning of the period, unless issued at a later date. Dilutive potential equity shares are determined independently for each period presented.

w) Cash flow statement

Cash flows are reported using the indirect method, whereby profit/(loss) before tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future receipts or payments. In the cash flow statement, cash and cash equivalents includes cash in hand, cheques on hand, balances with banks in current accounts and other short- term deposits with original maturities of 3 months or less, as applicable.

34 Fair value measurement

Fair value measurement hierarchy

The Company records certain financial assets and financial liabilities at fair value on a recurring basis. The Company determines fair values based on the price it would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date and in the principal or most advantageous market for that asset or liability.

The Company holds certain fixed income investments and other financial assets such as loans, deposits etc. which must be measured using the fair value hierarchy and related valuation methodologies. The guidance specifies a hierarchy of valuation techniques based on whether the inputs to each measurement are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s assumptions about current market conditions. The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.

Financial assets and financial liabilities measured at fair value in the balance sheet are grouped into three Levels of fair value hierarchy. These levels are based on the observability of significant inputs to the measurement, as follows:

> Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities

> Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability,

either directly or indirectly

> Level 3: Unobservable inputs for the asset or liability.

The following table shows the Levels within the hierarchy of financial and non-financial assets and liabilities measured at fair value on a recurring basis at 31 March 2023, 31 March 2022.:

35 Nature and extent of risks arising from financial instruments and respective financial risk management objectives and policies

The Company''s principal financial liabilities comprise of loans and borrowings, trade and other payables, and financial guarantee contracts. The main purpose of these financial liabilities is to finance the Company''s operations and to provide guarantees to support its and group companies operations.

The Company''s principal financial assets include loans, trade and other receivables, cash and short-term 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 the Group treasury team that advises on financial risks and the appropriate financial risk governance framework in accordance with the Company''s policies and risk objectives. All derivative activities for risk management purposes are carried out by Group Treasury Team that have the appropriate skills, experience and supervision. It is the Group''s policy that no trading in derivatives for speculative purposes may be undertaken. The Board of Directors review and agree on policies for managing each of these risks, which are summarised below.

a) Market risk

The Company is exposed to market risk through its use of financial instruments and specifically to currency risk, interest rate risk and certain other price risks, which result from both its operating and investing activities.

b) 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 are managed by borrowing at fixed interest rates. During the year Company did not have any floating rate borrowings.

c) Credit risk

Credit risk is the risk that a counterparty fails to discharge an obligation to the Company. The Company is exposed to this risk for various financial instruments, for example trade receivables, placing deposits, investment in mutual funds etc. the Company''s maximum exposure to credit risk is limited to the carrying amount of financial assets recognized at 31 March 2018, as summarised below:

38 Segment reporting

The company is primarily in the business of real estate development and related activities including construction. Major exposure is to residential and commercial construction and development of IT parks. Further majority of the business conducted is within the geographic boundaries of India.

In view of the above, in the opinion of the Management and based on the organizational and internal reporting structure, the company''s business activities as described above are subject to similar risks and returns. Further, since the business activities undertaken by the company are within India, in the opinion of the Management, the environment in India is considered to have similar risks and returns. Consequently the company''s business activities primarily represent a single business segment. Similarly, this business operations in India represent a single geographical segment.

In terms of our report attached

For B.P. JAIN & Co For and on behalf of the Board of Directors of

Chartered Accountants Arihant Foundations and Housing Limited

Firm''s Registration No.: 050105S

Devendra Kumar Bhandari Kamal Lunawath Vimal Lunawath Jose Alphia

Partner Managing Director Whole Time Director Company Secretary

Membership No. 208862 DIN : 00087324 DIN : 00586269

Place : CHENNAI Place : CHENNAI

Date : 30-05-2023 Date : 30-05-2023

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Mar 31, 2016

1. CONTINGENT LIABILITIES, PROVISIONS AND CONTINGENT ASSETS

2. Value Added Tax liability, if any on works contracts carried out by the company is considered by management as not material but if any liability arises it will be recovered from customers

3. The income tax department has filed appeal against the order of the CIT (Appeal) before the income tax appellate tribunal for various assessment years which is as follows:-year: Rs.23,16,081/- for the period October 2004 to march 2007). Stay has been granted by the CESTAT. If the appeal is disallowed it may result in penalty of equivalent amount

4. Amount of service tax under dispute: Rs.23,16,081/-pertaining to period October 2004 to march 2007 (Previous

5.The company has given corporate guarantee of 60 Crores to one of its joint venture companies

Contingent Assets :

The company may receive interest on amounts paid by it for various appeals which are pending before ITAT.

The Company will receive reimbursement from the joint venture company if the corporate guarantee is invok

6. The Company does not expect any reimbursements in respect of the above contingent liabilities.

7. It is not practicable to estimate the timing of cash outflows, if any, in respect of matters stated above pending resolution of the arbitration/appellate proceedings.

8. TRADE RECEIVABLES AND TRADE PAYABLES

Trade receivables, trade payables, advance from customer and advance to suplier are subject to confirmation awaited.

9. SEGMENT REPORTING

The company is primarily in the business of real estate development and related activities including construction. Major exposure is to residential and commercial construction and development of IT parks. Further majority of the business conducted is within the geographic boundaries of India.

In view of the above, in the opinion of the Management and based on the organizational and internal reporting structure, the company''s business activities as described above are subject to similar risks and returns. Further, since the business activities undertaken by the company are within India, in the opinion of the Management, the environment in India is considered to have similar risks and returns. Consequently the company''s business activities primarily represent a single business segment. Similarly, this business operations in India represent a single geographical segment.

10. LEASED ASSETS

11. Operating lease taken

12. The company has taken buildings on operating lease. The lease rental are paid by the company on a monthly basis.

13. Following are the details of lease rental expenses during the period

14. As per the lease agreement following are the details of Future minimum lease rentals payable as at 31st March, 2016.

15. Operating lease given

16. The company has given buildings on operating lease. The lease rental are Receivable by the company on a monthly basis.

17. Following are the details of leases rental income during the period

18. CONSERVATION OF ENERGY AND TECHNOLOGY ABSORPTION

The company does not own any manufacturing facility. Hence, the requirements pertaining to disclosure of particulars relating to conservation of energy, technology absorption as prescribed under the Companies (Disclosure of particulars in the report of board of directors) Rules, 1988, are not applicable. However, the company has commissioned a device named power factor, which reduces the consumption of energy. The company has also taken initiative to reduce the power and fuel consumption.

19. The above joint venture entities are incorporated in India. The Company''s share of the assets and liabilities as on 31st March , 2016 and income and expenses for the year ended31st March , 2016, in respect of joint venture entities based on board adopted unaudited accounts are considered for consolidation as shown below:

20. BENEFITS TO EMPLOYEES

As per accounting standard (AS) 15 revised, ‘employee benefits’, the disclosures of employee benefits ar as given below:

21. Defined contribution plans

Contributions recognized as expense for the year are as under:

22. Defined Benefit plans

The cost of providing gratuity are determined using the projected unit credit method, on the basis of actuarial valuation techniques, conducted at the end of the financial year.

23. PREVIOUS YEAR FIGURES

Previous year figures have been regrouped, rearranged and reclassified wherever considered necessary. The accompanying notes are an integral part of the financial statements

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Dec 31, 2014

1. COMPANY OVERVIEW

The company, Arihant Foundations and Housing Ltd was incorporated on 6th March, 1992. The Company is engaged in the business of real estate development of residential, commercial complexes and IT Parks.

2. CONTINGENT LIABILITIES, PROVISIONS AND CONTINGENT ASSETS

i) Sales tax liability, if any on works contracts carried out by the company is considered by management as not material but if any liability arises it will be recovered from customers

ii) The income tax department has filed appeal against the order of the CIT (Appeal) before the income tax apellate tribunal for various assessment years which is as follows:-

Period to which the Amount (Rs) amount relates

2004- 2005 13,71,638/-

2005- 2006 53,23,956/-

2007-2008 1,19,53,006/-

2009-2010 5,53,07,850/-

iii) Amount of service tax under dispute: R.23,16,081/- pertaining to period october 2004 to march 2007 (Previous year: R.23,16,081/- for the period october 2004 to march 2007). Stay has been granted by the CESTAT. If the appeal is disallowed it may result in penalty of equivalent amount.

Contingent Asset :

iv) The company may receive interest on amounts paid by it for various appeals which are pending before ITAT.

Notes:

1. The Company does not expect any reimbursements in respect of the above contingent liabilities.

2. It is not practicable to estimate the timing of cash outflows, if any, in respect of matters stated above pending resolution of the arbitration/appellate proceedings.

3. SEGMENT REPORTING

The company is primarily in the business of real estate development and related activities including construction. Major exposure is to residential and commercial construction and development of IT parks. Further majority of the business conducted is within the geographic boundaries of India.

In view of the above, in the opinion of the Management and based on the organizational and internal reporting structure, the company''s business activities as described above are subject to similar risks and returns. Further, since the business activities undertaken by the company are within India, in the opinion of the Management, the environment in India is considered to have similar risks and returns. Consequently the company''s business activities primarily represent a single business segment. Similarly, this business operations in India represent a single geographical segment.

4. RELATED PARTY DISCLOSURES

A) Name of the related party and nature of relationship where control exists

Wholly owned subsidiaries Joint Venture Entities Vaikunt Housing Limited Arihant Unitech Realty Projects limited Arihant Griha Limited Arihant Indo African Infra Developers and Builders Private limited Trasperent Heights Real Escapade Real Estate Private Estate Limited limited Varenya Constructions Limited Northtown Estates Private limited Arihant Foundations Arihant Foundations & Housing Arihant Heirloom

B) Name and relationship of related parties where transaction exists:

Wholly owned subsidiaries Joint Venture Entities Vaikunt Housing Limited Arihant Unitech Realty Projects limited Arihant Griha Limited Arihant Indo African Infra Developers and Builders Private limited Trasperent Heights Real Escapade Real Estate Private Estate Limited limited Varenya Constructions Limited Northtown Estates Private limited Arihant Foundations Arihant Foundations & Housing Arihant Heirloom

Key Management Personnel

Name Designation

Mr. Kamal Lunawath Chairman and Managing Director Mr. Vimal Lunawath CFO & Whole time Director Mr. Bharat Jain Whole time Director

Individuals owning directly or indirectly, an interest in the voting power of the reporting enterprise and relatives of any such individual:

Mrs. Snehalatha Lunawath Mrs. Preethi Lunawath Mrs. Kavita Lunawath

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Sep 30, 2013

1. interest inCome

Interest from Arihant Indo African Infra Developers & Builders Private Limited has accrued only for frst quarter. However, for the balance period, income recognition has been deferred because there is no certainty as to its collection. The said treatment is in conformity with Accounting Standard 9 Revenue Recognition.

2. Contingent LiABiLities, ProVisions And Contingent Assets

i) Sales tax liability, if any on works contracts carried out by the company is considered by management as not material but if any liability arises it will be recovered from customers

ii) The income tax department has filed appeal against the order of the CIT (Appeal) before the income tax apellate tribunal for various assessment years which is as follows:-

3. segment rePorting

The company is primarily in the business of real estate development and related activities including construction. Major exposure is to residential and commercial construction and development of IT parks. Further majority of the business conducted is within the geographic boundaries of India.

In view of the above, in the opinion of the Management and based on the organizational and internal reporting structure, the company''s business activities as described above are subject to similar risks and returns. Further, since the business activities undertaken by the company are within India, in the opinion of the Management, the environment in India is considered to have similar risks and returns. Consequently the company''s business activities primarily represent a single business segment. Similarly, this business operations in India represent a single geographical segment.

4. a) ConserVAtion oF energY And teChnoLogY ABsorPtion

The company does not own any manufacturing facility. Hence, the requirements pertaining to disclosure of particulars relating to conservation of energy, technology absorption as prescribed under the Companies (Disclosure of particulars in the report of board of directors) Rules, 1988, are not applicable. However, the company has commissioned a device named power factor, which reduces the consumption of energy. The company has also taken intiative to reduce the power and fuel consumption.

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Sep 30, 2012

COMPANY OVERVIEW

The company, Arihant Foundations and Housing Ltd was incorporated on 6th March, 1992. The Company is engaged in the business of real estate development of residential, commercial complexes and IT Parks.

1 CONTINGENT LIABILITIES, PROVISIONS AND CONTINGENT ASSETS

i) Sales tax liability, if any on works contracts carried out by the company is considered by management as not material but if any liability arises it will be recovered from customers.

ii) The income tax department has filed appeal against the order of the CIT (Appeal) before the income tax apellate tribunal for Asst Yr: 2004-2005, 2005-2006, 2007-2008 and 2009-2010

iii) Amount of service tax under dispute: Rs.23,16,081/- pertaining to period october 2004 to march 2007 (Previous year: Rs.23,16,081/- for the period october 2004 to march 2007)

iv) HUDCO has filed a counter suit against the order of DRT to increase the interest rate payable from 9%. As such, the interest liability of the company may be increased

v) The company may receive interest on amounts paid by it for various appeals which are pending.

Notes:

1. The Company does not expect any reimbursements in respect of the above contingent liabilities.

2. It is not practicable to estimate the timing of cash outflows, if any, in respect of matters stated above pending resolution of the arbitration/appellate proceedings

2. SEGMENT REPORTING

The company is primarily in the business of real estate development and related activities including construction. Major exposure is to residential and commercial construction and development of IT parks. Further majority of the business conducted is within the geographic boundaries of India.

In view of the above, in the opinion of the Management and based on the organizational and internal reporting structure, the company''s business activities as described above are subject to similar risks and returns. Further, since the business activities undertaken by the company are within India, in the opinion of the Management, the environment in India is considered to have similar risks and returns. Consequently the company''s business activities primarily represent a single business segment. Similarly, this business operations in India represent a single geographical segment.

3 a) CONSERVATION OF ENERGY AND TECHNOLOGY ABSORPTION

The company does not own any manufacturing facility. Hence, the requirements pertaining to disclosure of particulars relating to conservation of energy, technology absorption as prescribed under the Companies (Disclosure of particulars in the report of board of directors) Rules, 1988, are not applicable. However, the company has commissioned a device named power factor, which reduces the consumption of energy. The company has also taken intiative to reduce the power and fuel consumption.

4 The exceptional item of Rs. 2,80,03,796/- as shown in the statement of profit and loss for the year ended 30th Sep- tember, 2012 represents the provision created against the interest income.

5 PREVIOUS YEAR FIGURES

Previous year figures have been regrouped, rearranged and reclassified wherever considered necessary.

6 PRIOR YEAR COMPARATIVES

Till the year ended 30th September, 2011, the company was following pre-revised schedule VI to the Companies Act 1956, for the preparation and presentation of financial statements. During the year ended 30th Septemper, 2012, the revised schedule VI notified under the Act has become applicable to the company. The company has reclassified previous year figures to conform to this year''s clasification as per revised schedule VI. The adoption of revised schedule VI does not impact recognition and measurement principles followed by the company for the preparation of financial statements. However, it significantly impacts presentation and disclosures made in the financial statements. Consequently, prior year figures are not comparable to those which are as per the revised schedule VI requirements.

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Sep 30, 2011

1. SHARE CAPITAL AND SHARE WARRANTS

On 05th August, 2009, the Company has allotted 15,50,000 convertible equity warrants to Persons forming part of Promoter Group and a Body Corporate on preferential basis at a total exercise price of Rs.89/-(including premium of Rs.79/-). These warrants were allotted in accordance with SEBI (Issue of Capital & Disclosure Requirements) Regulations, 2009. At the time of allotment of the aforesaid convertible equity warrants, the Company has received 25% of total exercise price, Rs.22.25 per convertible equity warrants to the tune of Rs.3,44,87,500/-. On 16th March, 2010, Persons forming part of Promoter Group has converted 4,30,000 convertible equity warrants in to equal no. of fully paid up equity shares on payment of balance exercise price of Rs.66.75/- per convertible equity warrants and were allotted 4,30,000 fully paid up equity shares. The said allotment has resulted in to increase the paid up share capital of the Company from 70,50,000 equity shares of Rs. 10/- each to 74,80,000 fully paid up equity shares of Rs.10/- each.

During the year on 03.02.2011, the persons forming part of promoter group and a body corporate have converted outstanding 11,20,000 convertible equity warrants in to equal no. of fully paid up equity shares on payment of balance exercise price of Rs.66.75/- per convertible equity warrants and were allotted 11,20,000 fully paid up equity shares. The said allotment has resulted in to increase the paid up share capital of the Company from 74,80,000 fully paid up equity shares of Rs.10/- each to 86,00,000 fully paid up equity shares of Rs.10/- each.

The total proceeds from the aforementioned preferential issue have been utilized in Company's Project.

2. LIABILITIES AND ASSETS

Sundry Debtors, Sundry Creditors and loans and advances are subject to confirmation.

3. SECURED LOANS

Nature of Security.

Term Loans / Project loans from Banks and Financial Institutions are secured by hypothecation of fxed assets, current assets and mortgage of certain lands and projects of the Company and its Subsidiaries. The said loan further secured by personal guarantees of Managing Director and whole time Director.

The above joint venture entities are incorporated in India. The Company's share of the assets and liabilities as on 30.09.2011 and income and expenses for the year in respect of joint venture entities based on audited/ unaudited accounts are considered for consolidation.

Individuals owning directly or indirectly, an interest in the voting power of the reporting enterprise and relatives of any such individual:

a) Conservation of Energy:

For the purpose of conservation of energy, the company has commissioned a device named Power factor, which reduces the consumption of energy. The company has also taken initiative to reduce the power and fuel consumption.

d ) Quantitative Information

Quantitative and other disclosures as require by the paragraph 3(ii) of Schedule VI to the companies Act 1956 are not provided. The company is engaged in the business Of real estate development. The company has applied for obtaining an exemption with regard to the aforementioned disclosures.

4. DIVIDEND FOR PREVIOUS YEAR

The proposed final dividend for the previous year was Rs. 74,80,000. However the shareholders of the Company at the AGM held on 31.03.2011 had not approved the payment of the same. The aforesaid Proposed Dividend has been added back to Reserves during the current year.

5. Previous year figures have been regrouped/ rearranged wherever necessary in the balance sheet.

6. SCHEDULE TO ACCOUNTS

Schedule I to XVIII form an integral part of the balance sheet and profit & loss account and are duly authenticated.