Notes to Accounts of Ashiana Housing Ltd.

Mar 31, 2025

p) Provisions, Contingent Liabilities and Contingent
Assets

A provision is recognised when the company has present
determined obligations as a result of past events and
an outflow of resources embodying economic benefits
will be required to settle the obligations. Provisions are
recognised at the best estimate of the expenditure
required to settle the present obligation at the
balance sheet date.

If the effect of the time value of money is material,
provisions are discounted using a current pre tax rate
that reflects, where appropriate, the risks specific to the
liability. Where discounting is used, the increase in the
provision due to the passage of time is recognised as
a finance cost.

A Contingent liability is not recognised but disclosed in the
notes to the accounts, unless the probability of an outflow
of resources is remote.

A contingent asset is generally neither
recognised nor disclosed.

q) Earnings per share

The Basic earnings per share (EPS) is calculated by
dividing the net profit or loss for the year attributable to

the equity shareholders by the weighted average number
of equity shares outstanding during the year.

For the purpose of calculating Diluted earnings per share,
the net profit or loss for the year attributable to the equity
shareholders and the weighted average number of equity
shares outstanding during the year are adjusted for the
effects of all dilutive potential equity shares.

r) Dividends

Provision is made for the amount of any dividend
declared, being appropriately authorised and no longer at
the discretion of the company, on or before the end of
the reporting period but not distributed at the end of the
reporting period.

s) Exceptional items

Exceptional items refer to items of income or expense
within statement of profit and loss from ordinary activities
which are non-recurring and are of such size, nature or
incidence that their separate disclosure is considered
necessary to explain the performance of the company.

t) Impairment of assets

The company assesses, at each reporting date, whether
there is an indication that an asset may be impaired. If any
indication exists, or when annual impairment testing for
an asset is required, the company estimates the asset’s
recoverable amount. An asset’s recoverable amount is
the higher of an asset’s or cash-generating unit’s (CGU)
fair value less costs of disposal and its value in use.
Recoverable amount is determined for an individual asset,
unless the asset does not generate cash inflows that are
largely independent of those from other assets or groups
of assets. When the carrying amount of an asset or CGU
exceeds its recoverable amount, the asset is considered
impaired and is written down to its recoverable amount.

In assessing value in use, the estimated future cash flows
are discounted to their present value using a pre-tax
discount rate that reflects current market assessments
of the time value of money and the risks specific to the
asset. In determining fair value less costs of disposal,
recent market transactions are taken into account. If
no such transactions can be identified, an appropriate
valuation model is used.

Impairment losses of continuing operations, including
impairment on inventories, are recognised in the
statement of profit and loss.

(iv) Estimation of Fair Value

The company obtains independent valutations for its properties annually. These valuations are based on valuations performed by a
registered accredited independent valuer. The best evidence of fair value is current prices in an active market for similar properties.
Where such information is not available, the company considers information from a variety of sources including:

- current prices in an active market for properties of different nature or recent prices of similar properties in less active markets,
adjusted to reflect those differences

- discounted cash flow projections based on reliable estimates of future cash flows

- capitalised income projections based upon a property''s estimated net market income, and a capitalisation rate derived from an
evidence of market evidence

The main inputs used are the rental growth rates, expected vacancy rates, terminal yields and discount rates based on comparable
transactions and industry data.

The Management is of the view that the fair value of investment properties under construction cannot be reliably measured and hence
carrying cost pertaining to investment properties under progress have been taken as fair value.

(v) The Company has no restrictions on the realisability of its investment properties.

(iii) Term /Rights attached to Equity Shares

The company has only one class of Equity Share having a par value of H 2 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 is subject to the
approval of the shareholders in the ensuing Annual General Meeting.

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

(iv) The Board of Directors of the company in their meeting held on 30^th May 2025 recommended a final dividend of H 1.50/- per equity
share i.e. 75% on face value of H 2/- per share for the financial year ended 31^st March 2025. The proposal is subject to the approval of
shareholders at the Annual General Meeting to be held & if approved, would result in a cash outflow of H 1507.87 Lakhs

(v) During the year ended 31^st March 2024, 18,27,242 shares were bought back by the company

Nature of Reserves

a) Capital Redemption Reserve

This reserve represents the amount transferred from securities premium account for buy back of shares.

b) Securities Premium

Securities Premium is used to record the premium on issue of shares. The reserve is utilised in accordance with the provisions of
the Companies Act, 2013.

c) General Reserve

The General Reserve is used time to time for transfer of profits from surplus in Statement of Profit and Loss for appropriation purposes.

d) Equity Investment Reserve

This reserve represents the cumulative gains and losses arising on the revaluation of equity instruments measured at fair value
through other comprehensive income, net off amounts reclassified to retained earnings when those assets have been disposed off.

e. Company’s land at Milakpur Gujar, Bhiwadi, District Alwar (Rajasthan) admeasuring 15.02 hectares, is under acquisition, 12.834
hectares for residential purposes and 2.186 hectares for development of road, by the Government of Rajasthan. The Company has filed
a Writ Petition before the Hon’ble High Court of Rajasthan challenging the entire acquisition proceedings, against which the Hon''ble High
Court has given stay.

13 SEGMENT INFORMATION

A. Basis of Segmentation

Based on factors used to identify the entity’s reportable segments, including the basis of organisation for management purposes, the
Company has only one reportable segments namely, Development of real estate property. The Board of Directors of the Company acts
as the Chief Operating Decision Maker ("CODM”). The CODM evaluates the Company’s performance and allocates resources based on
an analysis of various performance indicators.

B. Geographical Information

The geographic information analyses the Company’s revenue and Non-Current Assets by the Company’s country of domicile and other
countries. As the Company is engaged in Development of Real Estate property in India, it has only one reportable geographical segment.

C. Information about major customers

None of the customers for the years ended March 31, 2025 and March 31, 2024 constituted 10% or more of the total revenue
of the Company.

Management estimations and assumptions

a) The management assessed that cash and cash equivalents, trade receivables, trade payables, bank overdrafts and other current
liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.

b) The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current
transaction between willing parties, other than in a forced or liquidation sale. The following methods and assumptions were used to
estimate the fair values:

(i) The fair values of the quoted bonds and debentures and unquoted mutual funds are based on price quotations/NAVs at the
reporting date.

(ii) The fair values of the unquoted equity shares have been determined based on certifications from valuers who have used Net
Asset Value approach for determining the fair values.

Level 1: Quoted Prices 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 (i.e. as prices)
or indirectly (i.e. derived from prices).

Level 3: Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).

The company''s policy is to recognize transfers into and the transfers out of fair value hierarchy levels as at the end of the reporting period.
There are no transfers between level 1 and level 2 during the end of the reported periods.

14.3 Financial Risk Management

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

The Company’s activities expose it to various financial risks like credit risk, liquidity risk and market risk (including interest rate risk).
The company tries to foresee the unpredictable nature of financial markets and seek to minimise potential adverse impact of these
risks on its financial performance. These risks are managed by the company taking several measures like requiring customers to pay
advances, progressive billing, management of funds by the treasury department, monitoring liquidity of the company through expected
cash flow forecasts etc.

The senior management of the company oversees the management of these risks. It is supported by a Risk Management Committee that
advises on financial risks and the appropriate financial risk governance framework for the Company. The Risk Management Committee
provides assurance to the Company’s senior management that the Company’s financial risk activities are governed by appropriate
policies and procedures and that financial risks are identified, measured and managed in accordance with the Company’s policies and
risk objectives. The Audit Committee has additional oversight in the area of financial risks and controls. It is the Company’s policy that no
trading in derivatives for speculative purposes may be undertaken.

15 CAPITAL MANAGEMENT

The company believes that maintaining a sound capital base is imperative to ensure continued confidence of its stakeholders like investors,
creditors, etc.

The following are the objectives of Capital management policy of the company:

(i) Safeguard its ability to continue as a going concern, so that it can continue to provide returns for shareholders and benefits for other
stakeholders, and

(ii) Maintain an optimal capital structure to reduce the cost of capital

The company manages its capital structure and makes adjustment after considering changes in economic conditions and requirements of the
financial covenants.

As a part of capital management strategy, the company may adjust the amount of dividends paid to shareholders, issue new shares, raise debt
capital or sell assets to reduce debt. The company monitors capital basis a gearing ratio which is calculated by dividing the total borrowings
by total equity. The company’s strategy is to maintain a gearing ratio lower than 30%. In order to achieve this overall objective, the company
ensures to meet its financial covenants attached to the interest bearing borrowings. There have never been any breaches in financial covenants
of any interest bearing borrowings in the past and also in the current period.

(iv) Perfomance obligations

Information about the Company’s performance obligations for material contracts are summarised below:

The satisfaction of performance obligation and the control thereof is transferred from the company to the buyer upon possession or
upon issuance of letter for offer of possession ("deemed date of possession"), whichever is earlier, subject to certainty of realisation.

The customer makes the payment of contracted price as per the installment stipulated in Builder Buyer''s agreement.

The Company is under an obligation to comply with the following In terms of the Real Estate (Regulation and Development)
Act 2016 (RERA)

(a) Obligation to keep 70% of the amounts realized from real estate project from allottees from time to time, in a separate
account in a scheduled bank

(b) Liability to rectify structural defect or defect in workmanship within 30 days if brought to notice of the company by allottee
within 5 years from the date of handing over possession

(B) Compliance with number of layers of companies:

No layer of companies have been established beyond the limit prescribed under clause (87) of section 2 of the Act read with Companies
(Restriction on numbers of Layers) Rules, 2017.

(C) Details in respect of Utilization of Borrowed funds and share premium shall be provided in respect of:

i) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities
(Intermediaries) with the understanding that the Intermediary shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the
company (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

ii) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the
understanding (whether recorded in writing or otherwise) that the Company shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the
Funding Party (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(D) Undisclosed income:

There are no transactions which have not been recorded in the books of accounts during the year that has been surrendered or
disclosed as income during the year in the tax assessments under the Income Tax Act, 1961.

(E) Details of Crypto Currency or Virtual Currency:

The Company has not traded or invested in Crypto Currency or Virtual Currency during the financial year.

(F) Details of Benami Property held:

No proceeding has been initiated or pending against the company for holding any benami property under the Benami Transactions
(Prohibition) Act, 1988 and rules made thereunder as at 31 March, 2025.

(G) Wilful Defaulter:

The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.

(H) Registration of charges or satisfaction with Registrar of Companies:

The Company doesn''t have charge or satisfaction which is yet to be registered with ROC beyond the statutory period.

(I) Fair Value of Investment Property by registered valuer:

The fair value of investment property is based on the valuation by a registered valuer as defined under rule 2 of Companies (Registered
Valuers and Valuation) Rules, 2017.

26 The Directorate General of GST intelligence (DGGI), Jaipur Zonal Unit, Jaipur carried out a Search under sub-section (2) of Section 67
of the Central Goods & Services Tax Act, 2017 (i.e. CGST Act, 2017), at the premises of Treehouse Hotel Club and Spa, Bhiwadi (a unit of
Ashiana Housing Limited). During the investigation, it was observed that the GST liability was computed based on an incorrect interpretation
of law where an inadvertent error was made in applying the incorrect GST rate on billing of food and beverages from restaurant (part of The
Treehouse Hotel). The Directorate General of GST Intelligence (DGGI), Jaipur Zonal Unit, Jaipur has waived the Show Cause Notice under
section 74 of the CGST Act, 2017 as the company has paid all the government dues including interest and penalty and issued the closure
letter dated 19.03.2025 concluding the proceedings in favour of the Company. The company''s PAT has a one-time impact of INR 5 crores
(shown as exceptional line item in Profit and Loss Statement).

27 Previous years figure have been regrouped/rearranged, wherever found necessary.

In terms of our report of even date attached herewith
For B Chhawchharia & Co

Chartered Accountants _ _

Firm Registration No: 305123E Vishal Gupta Varun Gupta

Abhishek Gupta (Managing Director) (Whole Time Directo

Partner DIN:00097939 DIN:01666653

Membership No: 529082 _ _

Nitin Sharma Vikash Dugar

(Company Secretary) (CFO)

Place: New Delhi
Date: 30^th May, 2025

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Mar 31, 2024

p) Provisions, Contingent Liabilities and Contingent Assets

A provision is recognised when the company has present determined obligations as a result of past events and an outflow of resources embodying economic benefits will be required to settle the obligations. Provisions are recognised at the best estimate of the expenditure required to settle the present obligation at the balance sheet date.

If the effect of the time value of money is material, provisions are discounted using a current pre tax rate that reflects, where appropriate, the risks specific to the liability. Where discounting is used, the increase in the

provision due to the passage of time is recognised as a finance cost.

A Contingent liability is not recognised but disclosed in the

notes to the accounts, unless the probability of an outflow of resources is remote.

A contingent asset is generally neither recognised nor disclosed.

q) Earnings per share

The Basic earnings per share (EPS) is calculated by dividing the net profit or loss for the year attributable to the equity shareholders by the weighted average number of equity shares outstanding during the year.

For the purpose of calculating Diluted earnings per share, the net profit or loss for the year attributable to the equity

shareholders and the weighted average number of equity shares outstanding during the year are adjusted for the

effects of all dilutive potential equity shares.

r) Dividends

Provision is made for the amount of any dividend declared, being appropriately authorised and no longer at the discretion of the company, on or before the end of the reporting period but not distributed at the end of the reporting period.

s) Exceptional items

Exceptional items refer to items of income or expense within statement of profit and loss from ordinary activities which are non-recurring and are of such size, nature or incidence that their separate disclosure is considered

necessary to explain the performance of the company.

t) Impairment of assets

The company assesses, at each reporting date, whether there is an indication that an asset may be impaired. If any indication exists, or when annual impairment testing for an asset is required, the company estimates the asset''s recoverable amount. An asset''s recoverable amount is the higher of an asset''s or cash-generating unit''s (CGU) fair value less costs of disposal and its value in use. Recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount.

In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax

discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining fair value less costs of disposal, recent market transactions are taken into account. If no such transactions can be identified, an appropriate valuation model is used.

Impairment losses of continuing operations, including impairment on inventories, are recognised in the statement of profit and loss.

13 SEGMENT INFORMATION

A. Basis of Segmentation

Based on factors used to identify the entity''s reportable segments, including the basis of organisation for management purposes, the Company has only one reportable segments namely, Development of real estate property. The Board of Directors of the Company acts as the Chief Operating Decision Maker ("CODM”]. The CODM evaluates the Company''s performance and allocates resources based on an analysis of various performance indicators.

B. Geographical Information

The geographic information analyses the Company''s revenue and Non-Current Assets by the Company''s country of domicile and other countries. As the Company is engaged in Development of Real Estate property in India, it has only one reportable geographical segment.

C. Information about major customers

None of the customers for the years ended March 31, 2024 and March 31, 2023 constituted 10% or more of the total revenue of the Company.

14 FINANCIAL INSTRUMENTS (CONTD..)

The Company''s activities expose it to various financial risks like credit risk, liquidity risk and market risk [including interest rate risk]. The company tries to foresee the unpredictable nature of financial markets and seek to minimise potential adverse impact of these risks on its financial performance. These risks are managed by the company taking several measures like requiring customers to pay advances, progressive billing, management of funds by the treasury department, monitoring liquidity of the company through expected cash flow forecasts etc.

The senior management of the company oversees the management of these risks. It is supported by a Risk Management Committee that advises on financial risks and the appropriate financial risk governance framework for the Company. The Risk Management Committee provides assurance to the Company''s senior management that the Company''s financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company''s policies and risk objectives. The Audit Committee has additional oversight in the area of financial risks and controls. It is the Company''s policy that no trading in derivatives for speculative purposes may be undertaken.

15 CAPITAL MANAGEMENT

The company believes that maintaining a sound capital base is imperative to ensure continued confidence of its stakeholders like investors, creditors, etc.

The following are the objectives of Capital management policy of the company:

[i] Safeguard its ability to continue as a going concern, so that it can continue to provide returns for shareholders and benefits for other

stakeholders, and

[ii] Maintain an optimal capital structure to reduce the cost of capital

The company manages its capital structure and makes adjustment after considering changes in economic conditions and requirements of the financial covenants.

As a part of capital management strategy, the company may adjust the amount of dividends paid to shareholders, issue new shares, raise debt capital or sell assets to reduce debt. The company monitors capital basis a gearing ratio which is calculated by dividing the total borrowings by total equity. The company''s strategy is to maintain a gearing ratio lower than 30%. In order to achieve this overall objective, the company ensures to meet its financial covenants attached to the interest bearing borrowings. There have never been any breaches in financial covenants of any interest bearing borrowings in the past and also in the current period.

(iv) Perfomance obligations

Information about the Company''s performance obligations for material contracts are summarised below:

The satisfaction of performance obligation and the control thereof is transferred from the company to the buyer upon possession or upon issuance of letter for offer of possession ("deemed date of possession"), whichever is earlier, subject to certainty of realisation.

The customer makes the payment of contracted price as per the installment stipulated in Builder Buyer''s agreement.

The Company is under an obligation to comply with the following In terms of the Real Estate [Regulation and Development] Act 2016 [RERA]

[a] Obligation to keep 70% of the amounts realized from real estate project from allottees from time to time, in a separate account in a scheduled bank

[b] Liability to rectify structural defect or defect in workmanship within 30 days if brought to notice of the company by allottee within 5 years from the date of handing over possession

Explanation for change in ratio having variance more than/less than 25%:

1 Increase in profit leading to increase in debt service coverage ratio for the year.

2 Increase in profit due to higher deliveries during the year as compared to previous year.

3 Due to increase in Cost of Good sold & increase in average inventory as compared to previous year.

4 Due to increase in sales as compared to previous year.

5 Due to increase in Earning before interest & tax & increase in debts as compared to previous year.

21 Other Statutory Information as required by Schedule III of Companies Act, 2013

(A) Relationship with Struck off Companies:

No transactions has been made with any of the companies which have been struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.

(B) Compliance with number of layers of companies:

No layer of companies have been established beyond the limit prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on numbers of Layers) Rules, 2017.

(C) Details in respect of Utilization of Borrowed funds and share premium shall be provided in respect of:

i) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the

company (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

ii) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the

Funding Party (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

21 Other Statutory Information as required by Schedule III of Companies Act, 2013 (CONTD..)

(D) Undisclosed income:

There are no transactions which have not been recorded in the books of accounts during the year that has been surrendered or disclosed

as income during the year in the tax assessments under the Income Tax Act, 1961.

(E) Details of Crypto Currency or Virtual Currency:

The Company has not traded or invested in Crypto Currency or Virtual Currency during the financial year.

(F) Details of Benami Property held:

No proceeding has been initiated or pending against the company for holding any benami property under the Benami Transactions

(Prohibition) Act, 1988 and rules made thereunder as at 31 March, 2024.

(G) Wilful Defaulter:

The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.

(H) Registration of charges or satisfaction with Registrar of Companies:

The Company doesn''t have charge or satisfaction which is yet to be registered with ROC beyond the statutory period.

(I) Fair Value of Investment Property by registered valuer:

The fair value of investment property is based on the valuation by a registered valuer as defined under rule 2 of Companies (Registered Valuers and Valuation) Rules, 2017.

26 Previous years figure have been regrouped/ rearranged, wherever found necessary.

In terms of our report of even date attached herewith For B Chhawchharia & Co

Chartered Accountants _ _ _

Firm Registration No: 305123E Vishal Gupta Varun Gupta Sonal Mattoo

(Managing Director) (Whole-time Director) (Independent Director)

DIN 00097939 DIN 01666653 DIN 00106795

Abhishek Gupta

Partner _ _

Membership No: 529082 Nitin Sharma Vikash Dugar

(Company Secretary) (CFO)

Place: New Delhi Date: 28th May, 2024

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Mar 31, 2023

Provisions, Contingent Liabilities and Contingent Assets

A provision is recognised when the company has present
determined obligations as a result of past events and an outflow
of resources embodying economic benefits will be required to
settle the obligations. Provisions are recognised at the best
estimate of the expenditure required to settle the present
obligation at the balance sheet date.

If the effect of the time value of money is material, provisions
are discounted using a current pre tax rate that reflects, where
appropriate, the risks specific to the liability. Where discounting

is used, the increase in the provision due to the passage of time
is recognised as a finance cost.

A Contingent liability is not recognised but disclosed in the notes

to the accounts, unless the probability of an outflow of resources
is remote.

A contingent asset is generally neither recognised nor disclosed.

2.20 Earnings per share

The Basic earnings per share (EPS) is calculated by dividing
the net profit or loss for the year attributable to the equity

shareholders by the weighted average number of equity shares
outstanding during the year.

For the purpose of calculating Diluted earnings per share, the net
profit or loss for the year attributable to the equity shareholders

and the weighted average number of equity shares outstanding
during the year are adjusted for the effects of all dilutive potential
equity shares.

2.21 Dividends

Provision is made for the amount of any dividend declared, being
appropriately authorised and no longer at the discretion of the
company, on or before the end of the reporting period but not

distributed at the end of the reporting period.

2.22 Exceptional items

Exceptional items refer to items of income or expense within
statement of profit and loss from ordinary activities which are
non-recurring and are of such size, nature or incidence that
their separate disclosure is considered necessary to explain the

performance of the company.

2.23 Impairment of assets

The company assesses, at each reporting date, whether there
is an indication that an asset may be impaired. If any indication
exists, or when annual impairment testing for an asset is
required, the company estimates the asset''s recoverable
amount. An asset''s recoverable amount is the higher of an
asset''s or cash-generating unit''s (CGU) fair value less costs of
disposal and its value in use. Recoverable amount is determined
for an individual asset, unless the asset does not generate cash
inflows that are largely independent of those from other assets
or groups of assets. When the carrying amount of an asset or
CGU exceeds its recoverable amount, the asset is considered
impaired and is written down to its recoverable amount.

In assessing value in use, the estimated future cash flows are
discounted to their present value using a pre-tax discount rate
that reflects current market assessments of the time value of
money and the risks specific to the asset. In determining fair
value less costs of disposal, recent market transactions are
taken into account. If no such transactions can be identified, an
appropriate valuation model is used.

Impairment losses of continuing operations, including impairment
on inventories, are recognised in the statement of profit and loss.

2.24 Critical accounting estimates

Property, plant and equipment

Property, plant and equipment represent a significant proportion
of the asset base of the Company. The charge in respect of
periodic depreciation is derived after determining an estimate
of an asset''s expected useful life and the expected residual
value at the end of its life. The useful lives and residual values of
company''s assets are determined by management at the time
the asset is acquired and reviewed periodically, including at each
financial year end. The lives are based on historical experience
with similar assets as well as anticipation of future events, which
may impact their life, such as changes in technology.

Intangible assets

The company tests whether intangible assets have suffered
any impairment on an annual basis. The recoverable amount
of a cash generating unit is determined based on value in use
calculations which require the use of assumptions.

Investment property

The charge in respect of periodic depreciation on investment
properties is derived after determining an estimate of an asset''s
expected useful life and the expected residual value at the end of its
life. The useful lives and residual values of company''s investment
properties are determined by management at the time the asset
is acquired and reviewed periodically, including at each financial
year end. The lives are based on historical experience with similar
assets as well as anticipation of future events, which may impact
their life, such as changes in technology.

Revenue Recognition

Determination of revenue under the satisfaction of performance
obligation at a point in time method necessarily involves making
estimates, some of which are of a technical nature, concerning
where relevant, the timing of satisfaction of performance
obligations, costs to completion, the expected revenues from
the project or activity and the foreseeable losses to completion.
The company recognises revenue when the company satisfies
its performance obligations.

Selling costs

Project wise unaccrued selling expenses carried forward are
reviewed by the management annually and compared with
the standard costs. The standard selling costs and selling
costs expected to be incurred in future are estimated by the

management annually project-wise keeping in mind various
factors such as location of the project, market scenario, sales
volume, pricing, etc.

Inventories

Inventories comprising of land/development rights, completed
units and project development forming part of work-in-progress

are valued at lower of cost and net realisable value. Net Realisable

value is based upon the estimates of the management. The
effect of changes, if any, to the estimates is recognised in the
standalone financial statements for the period in which such
changes are determined.

Trade Receivable

As per Ind AS 109, the company is required to apply expected
credit losses model for recognizing the provision for doubtful

debts. The expected credit losses are determined based on the
past trends & assumptions.

Recognition and measurement of defined benefit obligations

The obligations arising from defined benefit plan is determined
on the basis of actuarial assumptions. Key actuarial assumptions
include discount rate, trends in salary escalation and attrition

rate. The discount rate is determined by reference to market
yields at the end of the reporting period on government

securities, the period to maturity of the underlying securities
correspond to the probable maturity of the post-employment

benefit obligation.

Recognition of Deferred Tax Asset

The deferred tax assets in respect of unabsorbed losses is
recognised based on reasonable certainty of the projected

profitability, determined on the basis of approved business plans,
to the extent that sufficient taxable income will be available to
absorb the unabsorbed losses.

Provisions and contingencies

The recognition and measurement of other provisions are based
on the assessment of the probability of an outflow of resources,
and on past experience and circumstances known at the Balance
sheet date. The actual outflow of resources at a future date may
therefore vary from the amount included in other provisions.

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Mar 31, 2019

1. CORPORATE INFORMATION

Ashiana Housing Limited (“the company”) is a public limited company domiciled and incorporated in India and its shares are publicly traded on the National Stock Exchange (“NSE”) and the Bombay Stock Exchange (“BSE”), India. The registered office of the company is situated at 11G Everest, 46/C, Chowringhee Road, Kolkata - 700071 and the head office is situated at 304, Southern Park, Saket District Centre, Saket, New Delhi - 110017.

The principal business activity of the company is Real Estate Development. The company has its presence in the states of Rajasthan, Jharkhand, Maharashtra, Haryana, West Bengal, Gujarat and Tamil Nadu.

The financial statements were authorised for issue in accordance with a resolution passed by the Board of Directors on 18th May, 2019.

(i) Estimation of Fair Value

The company obtains independent valuations for its properties annually. These valuations are based on valuations performed by a registered accredited independent valuer. The best evidence of fair value is current prices in an active market for similar properties. Where such information is not available, the company considers information from a variety of sources including:

- current prices in an active market for properties of different nature or recent prices of similar properties in less active markets, adjusted to reflect those differences

- discounted cash flow projections based on reliable estimates of future cash flows

- capitalised income projections based upon a property’s estimated net market income, and a capitalisation rate derived from an evidence of market evidence

The main inputs used are the rental growth rates, expected vacancy rates, terminal yields and discount rates based on comparable transactions and industry data.

The Management is of the view that the fair value of investment properties under construction cannot be reliably measured and hence fair value disclosures pertaining to investment properties under construction have not been provided.

(ii) The company has no restrictions on the realisability of its investment properties.

(iii) The company has no contractual obligation to purchase, construct or develop investment properties or for repairs, maintenance and enhancements except to construct the educational building.

(vi) Term /Rights attached to Equity Shares

The company has only one class of Equity Share having a par value of RS. 2 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 is subject to the approval of the shareholders in the ensuing Annual General Meeting.

During the year ended 31 March 2019, the amount of per share dividend recognized as distributions to equity shareholders was RS. 0.25 (31^st March 2018: RS. 0.25)

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

(iii) The Board of Directors, in its meeting on 18^th May, 2019, have proposed a dividend of RS. 0.25/- per equity share for the financial year ended 31^st March, 2019.The proposal is subject to the approval of shareholders at the Annual General Meeting to be held and if approved would result in a cash outflow of approximately RS. 308.48 Lakhs including corporate dividend tax.

Nature of Reserves

a) Securities Premium

Securities Premium is used to record the premium on issue of shares. The reserve is utilised in accordance with the provisions of the Companies Act, 2013.

b) Debenture Redemption Reserve

The company is required to create a Debenture Redemption Reserve out of profits which is available for payment of dividend for the purpose of redemption of debentures, in terms of the requirements of Companies Act, 2013.

c) General Reserve

The General reserve is used from time to time for transfer of profits form surplus in statement of Profit and Loss for appropriation purposes.

d) Equity Investment Reserve

This reserve represents the cumulative gains and losses arising on the revaluation of equity instruments measured at fair value through other comprehensive income, net off amounts reclassified to retained earnings when those assets have been disposed off.

Defined Benefit Plan

The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognises each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

As of March 31, 2019, every percentage point increase / decrease in discount rate will affect the company’s gratuity and leave pay benefit obligation by approximately RS. 47.62 Lakhs and RS. 0.49 Lakhs respectively .

As of March 31, 2019, every percentage point increase / decrease in weighted average rate of increase in compensation levels will affect the company’s gratuity and leave pay benefit obligation by approximately RS. 39.30 Lakhs and RS. 0.55 Lakhs respectively .

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

2 EARNINGS PER SHARE

The earnings per share has been calculated as specified in Ind-AS 33 on “Earnings Per Share” prescribed by Companies (Accounting Standards) Rules, 2015 and related disclosures are as below :

3 COMMITMENTS AND CONTINGENCIES

a. Real Estate commitments

(i) Company’s following projects are being developed under Development Agreement with respective land owners on revenue sharing/ area sharing basis :

a) Ashiana Sehar , Jamshedpur

b) Ashiana Aditya, Jamshedpur

c) Ashiana Navrang, Halol

d) Ashiana Dwarka, Jodhpur

e) Ashiana Shubham, Chennai

f) Ashiana Anmol, Sohna

g) Ashiana Maitri and Nitya, Uttarpara (Kolkata)

h) Upcoming Project, Ajmer Road, Jaipur - ASHIANA DAKSH /AMANTARAN

(ii) In terms of Real Estate (Regulation and Development) Act 2016 (RERA) the company is under an obligation to rectify structural defect or defect in workmanship within 30 days, if brought to notice of the promoter by auditor within 5 years from the date of handing over possession.

b. Lease commitments

(i) Operating lease commitments — Company as lessee

The company has taken primarily under operating lease, immovable properties for use as its office premises, with lease terms between three to nine years. The company has the option, under some of its leases, to lease the assets for additional terms of three to nine years.

(ii) Operating lease commitments — Company as lessor

The company has entered into operating leases on its certain investment property portfolio. These leases have terms of eleven months to twenty years. All leases include a clause to enable upward revision of the rental charge on an annual basis according to prevailing market conditions. The total contingent rents recognised as income during the year is RS. 3 Lakhs (P.Y. RS. 6 Lakhs).

Future minimum rentals receivable under non-cancellable operating leases are, as follows:

c. Other Commitments

Estimated amount of contracts remaining to be executed on capital account and not provided for amounts to H Nil (P.Y. RS. 99.70 lakhs); against which the company has given advance of H Nil (P.Y. RS. 43.78 Lakhs).

d. Guarantees

The contingencies in respect of various guarantees at the end of the reporting period are as follows:

f. The company filed a writ petition against Jamshedpur Notified Area Committee’s (JNAC) order stopping construction work in company’s commercial project Marine Plaza in Sonari, Jamshedpur, which was allowed by the Hon’ble High Court of Jharkhand, by its Order dated 17.12.2014. Consequently, the company was allowed to carry out construction and marketing of the project and the State Government was directed by the Court to complete their enquiry, if any, in the matter on or before 30.06.2015. The company has received a communication from Additional Deputy Commissioner, East Singhbhum, Jamshedpur through Tata Steel Ltd. that a Committee of the State Government has completed its enquiry and submitted its report to the State Government. However, any report or order in respect of the outcome of the enquiry has not been received by the company till date. Due to uncertainty and absence of any directions from the Government, the company has stopped construction work at Marine Plaza Site. A sum of RS. 2,288.22 Lakhs has been incurred by the company on this project till the close of this year.

The company has again filed a writ petition against state of Jharkhand and Tata Steel Ltd. in January 2019 for final Decision in the enquiry and execution of sub lease deed of the land in favour of the company.

g. Company’s land at Milakpur Gujar, Bhiwadi, District Alwar (Rajasthan) admeasuring 15.02 hectares, appearing in these accounts at book value of RS. 338.97 Lakhs, is under acquisition, 12.834 hectares for residential purposes and 2.186 hectares for development of road, by the Government of Rajasthan. The company has filed a Writ Petition before the Hon’ble High Court of Rajasthan against acquisition of land admeasuring 12.834 hectares challenging the entire acquisition proceeding against which the Hon’ble High Court has given stay. A compensation of RS. 3,712.75 Lakhs has been declared by the Government which and interest thereon RS. 2,306.59 Lakhs approx as at the close of the year shall be considered in the accounts on finality and receipt.

4 FINANCIAL INSTRUMENTS

4.1 Financial Instruments by category

The carrying value of financial instruments by categories as on 31^st March, 2019 were as follows:

Management estimations and assumptions

a) The management assessed that cash and cash equivalents, trade receivables, trade payables, bank overdrafts and other current liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.

b) The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. The following methods and assumptions were used to estimate the fair values:

(i) The fair values of the quoted bonds and debentures and unquoted mutual funds are based on price quotations/NAVs at the reporting date.

(ii) The fair values of the unquoted equity shares have been determined based on certifications from valuers who have used Net Asset Value approach for determining the fair values.

Level 1: Quoted Prices 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 (i.e. as prices) or indirectly (i.e. derived from prices).

Level 3: Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs). The company’s policy is to recognize transfers into and the transfers out of fair value hierarchy levels as at the end of the reporting period. There are no transfers between level 1 and level 2 during the end of the reported periods.

4.2 Financial Risk Management

The company’s principal financial liabilities comprise loans and borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the company’s operations. The company’s principal financial assets include loans, trade and other receivables, and cash and cash equivalents that derive directly from its operations.

The company’s activities expose it to various financial risks: market risk, credit risk and liquidity risk. The company tries to foresee the unpredictable nature of financial markets and seek to minimise potential adverse impact on its financial performance. The senior management of the company oversees the management of these risks. It is supported by a risk management committee that advises on financial risks and the appropriate financial risk governance framework for the company. The risk management committee provides assurance to the company’s senior management that the company’s financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the company’s policies and risk objectives. The Audit Committee has additional oversight in the area of financial risks and controls. It is the company’s policy that no trading in derivatives for speculative purposes may be undertaken.

5 CAPITAL MANAGEMENT

The following are the objectives of Capital management policy of the company:

(i) Safeguard its ability to continue as a going concern, so that it can continue to provide returns for shareholders and benefits for other stakeholders, and

(ii) Maintain an optimal capital structure to reduce the cost of capital

As a part of capital management strategy, the company may adjust the amount of dividends paid to shareholders, issue new shares, raise debt capital or sell assets to reduce debt. The company monitors capital basis a gearing ratio which is calculated by dividing the total borrowings by total equity. The company’s strategy is to maintain a gearing ratio lower than 30%. In order to achieve this overall objective, the company ensures to meet its financial covenants attached to the interest bearing loans and borrowings. There have never been any breaches in financial covenants of any interest bearing loans and borrowings in the past and also in the current period.

6 SEGMENT INFORMATION

In accordance with Indian Accounting Standard 108 “Operating Segments” prescribed by Companies (Accounting Standards) Rules, 2015, the company has determined its primary business segment as a single segment of Real Estate Business. Since there are no other business segments in which the company operates, there are no other primary reportable segments. Therefore, the segment revenue, segment results, segment assets, segment liabilities, total cost incurred to acquire segment assets, depreciation charge are all as is reflected in the financial statements

7 RELATED PARTY TRANSACTIONS

Related parties and transactions with them as specified in the Ind-AS 24 on “Related Parties Disclosures” prescribed under Companies (Accounting Standards) Rules, 2015 has been identified and given below on the basis of information available with the company and the same has been relied upon by the auditors.

8 On the basis of physical verification of assets, as specified in IND AS - 36 and cash generation capacity of those assets, in the management perception there is no impairment of such assets as appearing in the Balance Sheet as on 31.03.2019.

9 Previous years figure have been regrouped/rearranged, wherever found necessary.

In terms of our report of even date attached herewith

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Mar 31, 2018

1 CAPITAL MANAGEMENT

The following are the objectives of Capital management policy of the company:

[i] Safeguard its ability to continue as a going concern, so that it can continue to provide returns for shareholders and benefits for other stakeholders, and

[ii] Maintain an optimal capital structure to reduce the cost of capital

As a part of capital management strategy, the company may adjust the amount of dividends paid to shareholders, issue new shares, raise debt capital or sell assets to reduce debt. The company monitors capital basis a gearing ratio which is calculated by dividing the total borrowings by total equity. The company’s strategy is to maintain a gearing ratio lower than 30%. In order to achieve this overall objective, the company ensures to meet its financial covenants attached to the interest bearing loans and borrowings. There have never been any breaches in financial covenants of any interest bearing loans and borrowings in the past and also in the current period.

2 SEGMENT INFORMATION

In accordance with Indian Accounting Standard 108 “Operating Segments" prescribed by Companies [Accounting Standards) Rules, 2015, the company has determined its primary business segment as a single segment of Real Estate Business. Since there are no other business segments in which the company operates, there are no other primary reportable segments. Therefore, the segment revenue, segment results, segment assets, segment liabilities, total cost incurred to acquire segment assets, depreciation charge are all as is reflected in the financial statements.

3 RELATED PARTY TRANSACTIONS

Related parties and transactions with them as specified in the Ind-AS 24 on “Related Parties Disclosures" prescribed under Companies [Accounting Standards) Rules, 2015 has been identified and given below on the basis of information available with the company and the same has been relied upon by the auditors.

c) Other Related Parties

[i) Key Management Personnel and their Relatives Relationship

Mr. Vishal Gupta Managing Director

Mr. Ankur Gupta Jt. Managing Director

Mr. Varun Gupta Wholetime Director

Mr. Hemant Kaul Independent Director

Mr. Abhishek Dalmia Independent Director

Mr. Anand Narayan Non Executive Director

Ms. Sonal Mattoo Independent Director

Mr. Vikash Dugar Chief Financial Officer

Mr. Nitin Sharma Company Secretary

Ms. Beila Gupta Relative of Key management personnel

[ii) Others Country OPG Realtors Limited India RG Woods Limited India BG Estates Private Limited India AHL Group Investments Private Limited India OPMG Investments Private Limited India Karma Hospitality LLP India

4 On the basis of physical verification of assets, as specified in IND AS - 36 and cash generation capacity of those assets, in the management perception there is no impairment of such assets as appearing in the Balance Sheet as on 31.03.2018.

5 Inventories of completed units include inventories of Rs,1,154.38 Lakhs being carried at fair value less costs to sell. The write down of Rs,218.78 Lakhs in such inventories have been recognized as expenses during the year.

6 During the year, 2 instances of fraud involving misappropriation of funds by the employees have been identified, total amount involved whereof is Rs,52.59 Lakhs. The company has initiated requisite actions in this regard including legal steps and for recovery of money and Rs,7.29 Lakhs have been recovered till date. In view of the management, these are one off instances and the company has adequate internal controls commensurate with its size and nature of operations.

7 Previous year’s figure have been regrouped/rearranged, wherever found necessary.

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Mar 31, 2017

1 FIRST TIME ADOPTION OF IND AS

These separate financial statements of Ashiana Housing Limited for the year ended 31^st March, 2017 have been prepared in accordance with Ind AS. For the purposes of transition to Ind AS, the company has followed the guidance prescribed in Ind AS 101 - First Time adoption of Indian Accounting Standard, with 1^st April, 201 5 as the transition date and Indian GAAP as the previous GAAP.

The transition to Ind AS has resulted in changes in the presentation of the financial statements, disclosures in the notes there to and accounting policies and principles. The accounting policies set out in Note 2 have been applied in preparing the separate financial statements for the year ended 31^st March, 2017 and the comparative information. An explanation of how the transition from previous GAAP to Ind AS has effected the company''s Balance Sheet, Statement of Profit and Loss is explained in Note 3.2 . Exemptions on first time adoption of Ind AS availed in accordance with Ind AS 101 have been set out in Note 3.1.

2 Exemptions availed on first time adoption

Ind-AS 101 allows first-time adopters certain exemptions from the retrospective application of certain requirements under Ind AS. The company has accordingly applied the following exemptions.

(a) Estimates

Ind AS 101 provides that an entity''s estimates as per Ind AS 8 “Accounting Policies, Changes in Accounting Estimates and Errors” at the date of transition shall be consistent with the estimates made for same date in accordance with previous GAAP, unless there is objective evidence that those estimates were in error.

Accordingly, the company has made Ind AS estimates as at the transition date i.e. 1^st April, 2015 which are consistent with estimates made by it under the previous GAAP for the same date. The company made estimates for following items in accordance with Ind AS at the date of transition since these were not required under previous GAAP :

i] Investment in equity instruments designated at Fair Value through OCI ;

ii] Investment in debt instruments designated at Fair Value through Statement of P/L ; and

iii] Impairment of financial assets based on expected credit loss model.

(b) Business Combinations

Ind AS 1 01 provides the option to apply Ind AS 103 - “Business Combinations” prospectively from the transition date or from a specific date prior to the transition date. This provides relief from full retrospective application that would require restatement of all business combinations prior to the transition date.

The company has elected to apply Ind AS 103 prospectively to business combinations occurring after its transition date. Accordingly, business combinations occurring prior to transition date have not been restated.

(c) Deemed Cost

Ind AS 101 provides an option under Ind AS 16 “Property, Plant and Equipment”, to continue with the carrying value of all its property, plant and equipment as recognized in financial statements as on transition date, measured as per the previous GAAP and use that as its deemed cost after making necessary adjustments for decommissioning liabilities instead of measuring at fair value on the transition date. This exemption can also be

c) There are no material adjustments to the statements of cash flows as reported under the previous GAAP.

d) Notes to first time adoption

Note 3 : Proposed dividend (including tax on dividend)

Under the previous GAAP, dividends proposed by the board of directors after the balance sheet date but before the approval of the financial statements were considered as adjusting events. Accordingly, provision for proposed dividend was recognized as a liability. Under Ind AS, such dividends are recognized when the same is approved by the shareholders in general meeting. Accordingly, the liability for proposed dividend of Rs.578.28 as at 1^st April, 2015 included under provisions has been reversed with corresponding adjustment to retained earnings. Consequently, the total equity increased by an equivalent amount.

Note 4 : Change in Fair valuation of Financial Instruments

Under the previous GAAP, investments in equity instruments and mutual fund were classified as long term investments or current investments based on the intended holding period and reliability. Long -term investments were carried at cost less provision for other than temporary decline in the value of such investments. Current investments were carried at lower of cost and fair value. Under Ind AS, these investments are required to be measured at fair value at each reporting period. The resulting fair value changes of these investments (other than equity instruments designated at fair value through OCI) have been recognized in retained earnings as at the date of transition and subsequently in the profit or loss for the year ended 31^st March, 2016. This increased the retained earnings by Rs.754.30 Lakhs as at 31^st March, 2016 (1^st April, 2015- Rs.64.35 Lakhs).

Fair value changes with respect to investments in equity instrument designated fair value through OCI have been recognized in Equity Investment Reserve as at the date of transition and subsequently in other

(iv] Estimation of Fair Value

The company obtains independent valuations for its properties annually. These valuations are based on valuations performed by a registered accredited independent valuer. The best evidence of fair value is current prices in an active market for similar properties. Where such information is not available, the company considers information from a variety of sources including:

- current prices in an active market for properties of different nature or recent prices of similar properties in less active markets, adjusted to reflect those differences

- discounted cash flow projections based on reliable estimates of future cash flows

- Capitalised income projections based upon a property''s estimated net market income, and a capitalization rate derived from an evidence of market evidence

The main inputs used are the rental growth rates, expected vacancy rates, terminal yields and discount rates based on comparable transactions and industry data.

(v] The company has no restrictions on the realisability of its investment properties.

(vi] The company has no contractual obligations to purchase, construct or develop investment properties or for repairs, maintenance and enhancements except for the contractual obligation to construct the educational building.

(iii) Term /Rights attached to Equity Shares

The company has only one class of Equity Share having a par value of Rs.2 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 is subject to the approval of the shareholders in the ensuing Annual General Meeting.

During the year ended 31^st March, 201 7, the amount of per share dividend recognized as distributions to equity shareholders was Nil/- (31^st March, 201 6: Rs.0.50].

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

(iv) The Board of Directors, in its meeting on 30^th May, 201 7, have proposed a final dividend of Rs.0.25/- per equity share for the financial year ended 31^st March, 201 7. The proposal is subject to the approval of shareholders at the Annual General Meeting to be held and if approved would result in a cash outflow of approximately Rs.308 Lakhs including corporate dividend tax.

(i) Disclosures pursuant to Schedule III of Companies Act, 2013 in relation to trade payables falling under the category of Micro and Small enterprises as defined under Micro, Small and Medium Enterprises Development Act, 2006 are as follows:

Dues to Micro and Small Enterprises have been determined to the extent such parties have been identified on the basis of information collected by the management.

Since previous year was the first year of such disclosure, figures for the year ended on 1^st April, 2015 was not available with the company and hence, not disclosed above.

The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

As of 31^st March, 2017, every percentage point increase / decrease in discount rate will affect the company’s gratuity and leave pay benefit obligation by approximately Rs.51 Lakhs and Rs.0.31 Lakhs respectively .

As of 31^st March, 2017, every percentage point increase / decrease in weighted average rate of increase in compensation levels will affect the company’s gratuity and leave pay benefit obligation by approximately Rs.46 Lakhs and Rs.0.32 Lakhs respectively .

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

(ii) Operating lease commitments — Company as lessor

The company has entered into operating leases on its certain investment property portfolio. These leases have terms of eleven months to 20 years. All leases include a clause to enable upward revision of the rental charge on an annual basis according to prevailing market conditions. The total contingent rents recognized as income during the year is Rs.12.24 Lakhs (31^st March, 201 5: Rs.1 3.94 Lakhs).

c. Other Commitments

Estimated amount of contracts remaining to be executed on capital account and not provided for amounts to Rs.146.59 Lakh (P.Y. Rs.1 62.74 Lakhs); against which the company has given advance of Rs.98.47 Lakhs (P.Y. Rs.96.91 Lakhs).

f. The company filed a writ petition against Jamshedpur Notified Area Committee''s (JNAC) order stopping construction work in company''s commercial project Marine Plaza in Sonari, Jamshedpur, which was allowed by the Hon''ble High Court of Jharkhand, by its Order dated 1 7.1 2.201 4. Consequently, the company was allowed to carry out construction and marketing of the project and the State Government was directed by the Court to complete their enquiry, if any, in the matter on or before 30.06.201 5. The company has received a communication from Additional Deputy Commissioner, East Singhbhum, Jamshedpur through Tata Steel Ltd. that a Committee of the State Government has completed its enquiry and submitted its report to the State Government. However, any report or order in respect of the outcome of the enquiry has not been received by the company till date. Due to uncertainty and absence of any directions from the Government, the company has stopped construction work at Marine Plaza Site. A sum of Rs.2,039.03 Lakhs has been incurred by the company on this project till the close of this year.

g. Company''s land at Milakpur Gujar, Bhiwadi, District Alwar (Rajasthan) admeasuring 15.02 hectares, appearing in these accounts at book value of Rs.338.97 Lakhs, is under acquisition, 12.834 hectares for residential purposes and 2.186 hectares for development of road, by the Government of Rajasthan. The company has filed a Writ Petition before the Hon''ble High Court of Rajasthan against acquisition of land admeasuring 1 2.834 hectares challenging the entire acquisition proceeding against which the Hon''ble High Court has given stay. A compensation of Rs.3,71 2.75 Lakhs has been declared by the Government which and interest thereon Rs.1,638.30 Lakhs approx as at the close of the year shall be considered in the accounts on finality and receipt.

Management estimations and assumptions

a] The management assessed that cash and cash equivalents, trade receivables, trade payables, bank overdrafts and other current liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.

b] The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. The following methods and assumptions were used to estimate the fair values:

(i] The fair values of the quoted bonds and debentures and unquoted mutual funds are based on price quotations/NAVs at the reporting date.

(ii] The fair values of the unquoted equity shares have been determined based on certifications from valuers who have used Net Asset Value approach for determining the fair values.

As a part of capital management strategy, the company may adjust the amount of dividends paid to shareholders, issue new shares, raise debt capital or sell assets to reduce debt. The company monitors capital basis a gearing ratio which is calculated by dividing the total borrowings by total equity. The company’s strategy is to maintain a gearing ratio lower than 30%. In order to achieve this overall objective, the company ensures to meet its financial covenants attached to the interest bearing loans and borrowings. There have never been any breaches in financial covenants of any interest bearing loans and borrowings in the past and also in the current period.

5 SEGMENT INFORMATION

In accordance with Indian Accounting Standard 1 08 “Operating Segments” prescribed by Companies (Accounting Standards) Rules, 201 5, the company has determined its primary business segment as a single segment of Real Estate Business. Since there are no other business segments in which the company operates, there are no other primary reportable segments. Therefore, the segment revenue, segment results, segment assets, segment liabilities, total cost incurred to acquire segment assets, depreciation charge are all as is reflected in the financial statements.

6 RELATED PARTY TRANSACTIONS

Related parties and transactions with them as specified in the Ind-AS 24 on “Related Parties Disclosures” prescribed under Companies (Accounting Standards) Rules, 2015 has been identified and given below on the basis of information available with the company and the same has been relied upon by the auditors.

7 On the basis of physical verification of assets, as specified in IND AS - 36 and cash generation capacity of those assets, in the management perception there is no impairment of such assets as appearing in the Balance Sheet as on 31.03.201 7.

8 DISCLSOURE ON SPECIFIED BANK NOTES (SBNs)

During the year, the company had specified bank notes or other denomination note as defined in the MCA notification G.S.R. 308(E] dated 31^st March, 2017 on the details of Specified Bank Notes (SBN] held and transacted during the period from 8^th November, 201 6 to 30^th December, 201 6, the denomination wise SBNs and other notes as per the notification is given below:

* For the purposes of this clause, the term ‘Specified Bank Notes'' shall have the same meaning provided in the notification of the Government of India, in the Ministry of Finance, Department of Economic Affairs number S.O. 3407(E], dated the 8^th November, 201 6.

9 Previous years figure have been regrouped/rearranged, wherever found necessary.

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Mar 31, 2016

1. A disclosure for a contingent liability is made when there is a
possible obligation or a present obligation that may, but probably will
not, require an outflow of resources.

b) Contested claim of Secretary, UIT, Bhiwadi for payment of Completion
Certificate Charges amounting to Rs, 12.53 Lakhs (Rs,12.53 Lakhs)
against which the company has deposited Rs, 12.53 Lakhs (Rs, 12.53
Lakhs) under protest.

2.) Company''s land at Milakpur Gujar, Bhiwadi, District Alwar
(Rajasthan) admeasuring 15.02 hectares, appearing in these accounts at
book value of Rs, 338.97 lakhs, is under acquisition, 12.834 hectares
for residential purposes and 2.186 hectares for development of road, by
the Government of Rajasthan. The Company has filed a Writ Petition
before the Hon''ble High Court of Rajasthan against acquisition of land
admeasuring 12.834 hectares challenging the entire acquisition
proceeding against which the Hon''ble High Court has given stay. A
compensation of Rs, 3712.75 lakhs has been declared by the Government
which and interest thereon Rs, 1304.15 lakhs approx as at the close of
the year shall be considered in the accounts on finality and receipt.

3.) The company filed a writ petition against Jamshedpur Notified Area
Committee''s (JNAC) order stopping construction work in company''s
commercial project Marine Plaza in Sonari, Jamshedpur, which was
allowed by the Hon''ble High Court of Jharkhand, by its Order dated
17.12.2014. Consequently, the company was allowed to carry out
construction and marketing of the project and the State Government was
directed by the Court to complete their enquiry, if any, in the matter
on or before 30.06.2015. The company has received a communication from
Additional Deputy Commissioner, East Singhbhum, Jamshedpur through Tata
Steel Ltd. that a Committee of the State Government has completed its
enquiry and submitted its report to the State Government. However, any
report or order in respect of the outcome of the enquiry has not been
received by the company till date. Due to uncertainty and absence of
any directions from the Government, the company has stopped
construction work at Marine Plaza Site. A sum of Rs, 2027.52 lakhs has
been incurred by the company on this project till the close of this
year.

4.) Company''s following projects are being developed under Development
Agreement with respective land owners on revenue sharing/area sharing
basis : Ashiana Anantara , (Jamshedpur), Ashiana Anand, (Jamshedpur),
Ashiana Navrang,( Halol), Ashiana Dwarka, (Jodhpur), Ashiana Shubham,
(Chennai), Ashiana Anmol, (Sohna), Ashiana Maitri, Uttarpara (Kolkata),
Upcoming Project, Ajmer Road, (Jaipur)

5. Estimated amount of contract remaining to be executed on capital
account and not provided for amounts to Rs, 162.74 Lakhs (P.Y. Rs,
37.20); against which the company has given advance of Rs, 96.91 Lakhs
(P.Y. Rs, 2.52 Lakhs).

6. In accordance with Accounting Standard 17 "Segment Reporting" as
prescribed under Companies (Accounting Standards) Rules, 2006, the
company has determined its business segment as Real Estate Business.
Since there are no other business segments in which the company
operates, there are no other primary reportable segments. Therefore,
the segment revenue, segment results, segment assets, segment
liabilities, total cost incurred to acquire segment assets,
depreciation charge are all as is reflected in the financial
statements.

7. Related parties and transactions with them as specified in the
Accounting Standard 18 on "Related Parties Disclosures" prescribed
under Companies (Accounting Standards) Rules, 2006 has been identified
and given below on the basis of information available with the Company
and the same has been relied upon by the auditors.

a) Enterprises where control exits Ashiana Maintenance Services Limited

Latest Developers Advisory Ltd Topwell Projects Consultants Ltd.
Neemrana Builders LLP MG Homecraft LLP Ashiana Amar Developers Vista
Housing

b) Associates and Joint Ventures Ashiana Greenwood Developers

Megha Colonizers

Ashiana Manglam Developers

Ashiana Manglam Builders

c) Individual Owning an interest in the voting power Nil of the Company
and their relatives

d) Key Management Personnel and their Relatives Mr. Vishal Gupta,
Managing Director

Mr. Ankur Gupta, Jt. Managing Director

Mr. Varun Gupta, Whole Time Director

Mr. Hemant Kaul, Independent Director

Mr. Abhishek Dalmia, Independent Director

Ms. Sonal Mattoo, Independent Director

Mr. Anand Narayan, Non Executive Director

Ms. Hem Gupta, Relative of Directors

Mr. Vikash Dugar, Chief Financial Officer

Mr. Nitin Sharma, Company Secretary

Ms. Aparna Sharma, Relative of Company Secretary

e) Enterprises over which any person referred to in OPG Realtors
Limited

(c) or (d) is able to exercise significant influence Karma Hospitality
Limited

R G Woods Limited OPMG Investments Private Limited AHL Group
Investments Pvt. Ltd.

Defined Benefit Plan

The present value of obligation is determined based on the actuarial
valuation using the Projected Unit Credit Method, which recognizes each
period of service as giving rise to additional unit of employee benefit
entitlement and measures each unit separately to build up the final
obligation.

8. Disclosures pursuant to Schedule III of Companies Act, 2013 in
relation to trade payables falling under the category of Micro and
Small enterprises as defined under Micro, Small and Medium Enterprises
Development Act, 2006 are as follows:

9. These accounts have been prepared as per Guidance note on
"Recognition of Revenue by Real Estate Developers" in respect of
projects undertaken between 1 April, 2006 and 31 March, 2011, which
have reached the level of construction as considered appropriate by the
management within 31 March, 2011.

Since, in terms of provisions of the Income Tax Act, 1961 the income
accrues upon delivery of physical possession/ deemed possession of
constructed unit ''Net Profit'' for computing Total Income under the said
Act is as follows: -

10. On the basis of physical verification of assets, as specified in
Accounting Standard - 28 and cash generation capacity of those assets,
in the management perception there is no impairment of such assets as
appearing in the balance sheet as on 31.03.2016.

11. During the year, the company has incurred Rs, 72.96 Lakhs (Rs,
107.55 Lakhs) towards Corporate Social Responsibility which has been
charged to the respective heads of accounts.

12. a) Previous year figures above are indicated in brackets.

b) Previous year figure have been regrouped/rearranged, wherever found
necessary.

---

Mar 31, 2015

1) Term/R ights attached to Equity Shares

The Company has only one class of Equity Share having a par value of 2 per share. Each holder of Equity Shares is entitled to one vote per share. The Company declares and pays dividend s in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. During the year ended 31 March, 2015, the amount of per share dividend recognized as distributions to equity shareholders was Rs. 0.50/- (31 March 201 4: 0.50). In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

2) Contingent Liability, not provided for, in respect of :

a) Claims not acknowledged a s debts

Cess - Sonari land Rs. 62.66 lakhs (Rs.54.28 lakhs)

Bank Guarantee Rs. 1345.00 lakhs (Rs.1375 lakhs)

Service Tax Rs.85.55 lakhs (Rs. 89 lakhs)

Income Tax Rs. 36.00 lakhs (Rs.39.14 lakhs)

Provident Fund Rs. 185.27 lakhs (Rs.185.27 lakhs)

Entry Tax Rs. 19.23 lakhs (Rs.19.23 lakhs)

Employee State Rs. 4.28 lakhs (Rs. 4.28 lakhs) Insurance Corporation

b) Contested claim of Secretary, UIT, Bhiwadi for payment of Completion Certificate Charges amounting to 1 2.53 lakhs (Rs. 12.53 lakhs) against which the Company has deposited Rs. 12.53 lakhs (Rs. 12.53 lakhs) under protest.

3) Companys land at Milakpur Gujar, Bhiwadi, District Alwar (Rajasthan) admeasuring 15.02 hectares, appearing in these accounts at book value of Rs. 338.97 lakhs, is under acquisition, 12.834 hectares for residential purposes and 2.186 hectares for development of road, by the Government of Rajasthan. The Company has filed a Writ Petition before the Honble High Court of Rajasthan against acquisition of land admeasuring 12.834 hectares challenging the entire acquisition proceeding. A compensation of Rs. 3873.12 lakhs has been declared by the Government which and interest thereon Rs. 1049.91 lakhs approx as at the close of the year shall be considered in the accounts on finality and receipt.

4) The Company filed a writ petition against Jamshedpur Notified Area Committee's (JNAC) order stopping construction work in Company's commercial project Marine Plaza in Sonari, Jamshedpur, which has been allowed by the Hon'ble High Court of Jharkhand, by their Order dated 1 7.1 2.201 4. Consequently, the Company has been allowed to carry out construction and marketing of the project, and the State Government has been directed by the Court to complete their enquiry, if any, in the matter on or before 31.03.2015 which was subsequently extended by three months by the Court by their Order dated 08.04.2015. A sum of Rs. 1951.93 lakhs has been incurred by the Company on this project till the close of this year.

5) Company s projects Ashiana Anantara, Jamshedpur, Ashiana Navrang, Halol, Ashiana Dwarka, Jodhpur and Ashiana Anmol, Sohna are being developed under Development Agreement with respective land owner s on revenue sharing/ area sharing basis.

6) Estimated amount of contract remaining to be executed on capital account and not provided for amounts to Rs. 37.20 lakhs (P.Y. Rs. 12.64 lakhs); against which the Company has given advance of Rs. 2.52 lakhs (P.Y. Rs. 4.68 lakhs).

7) a) In view of non confirmation/response from the suppliers regarding their status as SSI units, the amount due to Small Scale Industrial undertaking can not be ascertained.

b) Due to non receipt of confirmation/response from the suppliers for compliance under the Micro, Small and Medium Enterprises Development Act, 2006, the Company is unable to provide the information required under the said a ct.

8) The disclosure required under Accounting Standard -15, Employees Benefit, notified in the Companies (Accounting Standard) Rules, 2006 are given below, based on the Actuarial Report certified by a Practicing Actuary.

Defined Benefit Plan

The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

9) In accordance with Accounting Standard 17 Segment Reporting as prescribed under Companies (Accounting Standards) Rules, 2006, the Company has determined its business segment as Real Estate Business. Since there are no other business segments in which the Company operates, there are no other primary reportable segments. Therefore, the segment revenue, segment results, segment assets, segment liabilities, total cost incurred to acquire segment assets, depreciation charge are all as is reflected in the financial statements.

10) Related parties and transactions with them as specified in the Accounting Standard 1 8 on Related Parties Disclosures prescribed under Companies (Accounting Standards) Rules, 2006 has been identified and given below on the basis of information available with the Company and the same has been relied upon by the auditors.

a) Enterprises where control exits

Ashiana Maintenance Services Limited Latest Developers Advisory Ltd Topwell Projects Consultants Ltd. Neemrana Builders LLP MG Homecraft LLP Ashiana Amar Developer s Vista Housing

b) Associates and Joint Ventures

Ashiana Greenwood Developers Megha Colonizers Ashiana Manglam Developers Ashiana Manglam Builders

c) Individual Owning an interest in the voting power of the Company and their relatives

Nil

d) Key Management Personnel and their Relatives

Mr. Vishal Gupta, Managing Director Mr. Ankur Gupta, Jt. Managing Director Mr. Varun Gupta, Whole Time Director Mr. Hemant Kaul, Independent Director Mr. Abhishek Dalmia, Independent Director M s. Sonal Mattoo, Independent Director Ms. Hem Gupta, Relative of Directors

Mr. Vikash Dugar, Chief Financial Officer

M r. Nitin Sharma, Company Secretary

M s. Aparna Sharma, Relative of Company Secretary

e) Enterprises over which any person referred to in (c) or (d) is able to exercise significant influence

OPG Realtors Limited Karma Hospitality Limited R G Woods Limited OPMG Investments Private Limited AHL Group Investments Pvt. Ltd.

11) These accounts have been prepared as per Guidance note on Recognition of Revenue by Real Estate Developers in respect of projects undertaken between 1st April, 2006 and 31st March, 2011 , which have reached the level of construction as considered appropriate by the management within 31" March, 2011.

12) In term s of the provisions of the Companies Act, 201 3, the management, based on technical evaluation, has reassessed the useful life of the tangible fixed assets. Con sequently, the depreciation for the year is higher by Rs. 674 lakh s.

13) Unabsorbed MAT credit to be allowed in future years amounts to Rs. 2706.69 lakhs/- (Rs. 2596.69 lakhs/-)

14) On the basis of physical verification of assets, as specified in Accounting Standard - 28 and cash generation capacity of those assets, in the management perception there is no impairment of such assets as appearing in the balance sheet as on 31.03.2015.

15) During the year, the Company has incurred Rs.107.55 lakh s (P.Y. 60.95 lakhs) towards Corpora te Social Responsibility which has been charged to the respective heads of accounts.

16) a) Previous year figures above are indicated in brackets.

b) Previous year figure have been reg rouped / rearranged, wherever found necessary.

---

Mar 31, 2013

1) Contingent Liability, not provided for, in respect of:

a) Claimsnotac knowled gedasdebts

Cess-Sonari land Rs.45.91 lakhs [Rs. 37.53 lakhs)

BankGuarantee Rs.0.25 lakhs [Rs.0.25 lakhs)

b) Contested claim of the Government of Rajasthan for refund of State Capital Subsidy including interest Rs.55.79 lakhs [Rs.54.75 lakhs) againstwhich the company has deposited X 55.79 lakhs [Rs.15 lakhs) under protest.

c) Contested claim of Secretary, UIT, Bhiwadi for payment of Completion Certificate Charges amounting to Rs.1 2.53 lakhs [Rs.1 2.53 lakhs) againstwhich the company has deposited Rs.12.53 lakhs [Rs. 12.53 lakhs) under protest.

d) Contested claim of a customer pursuant to the order of the District Consumer Forum Rs.2.66 lakhs [Nil) againstwhich the company has depositedRs. 2.66 lakhs [Nil) under protest.

2) Estimated amount of contract remaining to be executed on capital account and not provided for amounts to Rs.1 82.86 lakhs [P.Y. Nil); against which the company has given advance ofRs.1 5.1 ? lakhs [P.Y. Nil).

3) a) In view of non confirmation/response from the suppliers regarding their status as SSI units, the amount due to Small Scale Industrial undertaking can notbe ascertained.

b) Due to non receipt of confirmation/response from the suppliers for compliance under the Micro, Small and Medium Enterprises Development Act, 2006, the company is unable to provide the information required under the said act.

B) The company'' s Writ Petition before the Hon'' ble Rajasthan High Court, challenging applicability of service tax to the company under the category '' Construction of Residential Complex Services'' , has been dismissed by the Court. In view of this, the amounts of '' Service Tax Received from customers [subjudice)'' and '' Service Tax paid under Protest'' appearing under the heads "Other Current Liabilities" and "Short Term Loans and Advances" respectively in the previous year accounts have been regrouped/recasted.

4) The company has acquired Thada/Udaipur Business Divisions alongwith land admeasuring 22.296 hectares situated atThada and Udaipur villages, District Alwar, Rajasthan from its wholly owned subsidiaries namely M/s Topwell Projects Consultants Limited and M/s Latest Developers Advisory Limited byway of slump sale during the year, and assets and liabilites acquired thereof have been considered in these accounts accordingly. The company plans to launch project ''Ashiana Town'' on the aforesaid land.

5) In accordance with Accounting Standard 1 7 "Segment Reporting" as prescribed under Companies [Accounting Standards) Rules, 2006, the company has determined its business segment as Real Estate Business. Since there are no other business segments in which the company operates, there are no other primary reportable segments. Therefore, the segment revenue, segment results, segment assets, segment liabilities, total cost incurred to acquire segment assets, depreciation charge are all as is reflected in the financial statements.

6) Related parties and transactions with them as specified in the Accounting Standard 18 on "Related Parties Disclosures" presribed under Companies [Accounting Standards) Rules, 2006 has been identified and given below on the basis of information available with the company and the same has been relied upon by the auditors.

7) The earning per share has been calculated as specified in Accounting Standard 20 on "Earnings Per Share" issued by ICAI and related disclosures are as below:

8) The disclosure required under Accounting Standard -15, Employees Benefit, notified in the Companies [Accounting Standard) Rules, 2006 are given below:

9) These accounts have been prepared as per the revised Accounting Standard [AS) 9 on "Revenue Recognition" and the Guidance note on "Recognition of Revenue by Real Estate Developers" in respect of projects undertaken on or after 1st April, 2006 which have reached the level of construction as considered appropriate by the management within 31st March, 2011.

Since, in terms of provisions of the Income Tax Act, 1 961 the income accrues upon delivery of physical possession/ deemed possession of constructed unit and as deduction u/s 80IB [10) is claimed by the company after completion of construction, '' Net Profit'' for computing Total Income under the said Act is as follows: -

10) Unabsorbed MAT credit to be allowed in future years amounts to Rs. 259,435,295/- [ Rs.362,982,478/-)

11) The following changes in the accounting policies have been adopted during the year:

a) The project specific indirect expenses are being included in the cost in valuing Unsold Completed Construction and work in Progress.

b) Selling Expenses related to Specific Projects are being charged to Profit & Loss Account in the year in which sale thereof is offered for taxation.

Due to the aforesaid changes, profit for the year is higher byRs. 71 7.97 lakhs.

12) On the basis of physical verification of assets, as specified in Accounting Standard - 28 and cash generation capacity of those assets, in the management perception there is no impairment of such assets as appearing in the balance sheet as on 31.03.201 3.

13) During the year, the company has incurred Rs. 79.00 lakhs [P.Y. Rs. 37.92 lakhs) towards Corporate Social Responsibility which has been charged to the respective heads of accounts.

14) a) Previous year figures above are indicated in brackets.

b) Previous year figure have been regrouped/rearranged, wherever found necessary.

c) In view of changes in accounting policies as stated in Note No. 14 above, corresponding previous year figures are not comparable to that extent.

---

Mar 31, 2012

1) Contingent Liability, not provided for, in respect of:

2011 -2012 2010-2011

a) Contested demand of

ESIC NIL (Rs.4.28 lakhs)

Cess - Sonari land RS 37.53 lakhs (Rs 29.15 lakhs)

Service tax Rs.17.94 lakhs (NIL)

b) Contested claim of the Government of Rajasthan for refund of State Capital Subsidy including interest Rs 54.75 lakhs (Rs 52.50 lakhs). However the company has deposited Rs. 15 lakhs under protest.

2)a) In view of non confirmation/response from the suppliers regarding their status as SSI units, the amount due to Small Scale Industrial undertaking can not be ascertained.

b) Due to non receipt of confirmation/response from the suppliers for compliance under the Micro, Small and Medium Enterprises Development Act, 2006, the company is unable to provide the information required under the said Act.

4) Related parties and transactions with them as specified in the Accounting Standard 18 on "Related Parties Disclosures" issued by ICAI has been identified and given below on the basis of information available with the company and the same has been relied upon by the auditors.

5) These accounts have been prepared as per the revised Accounting Standard (AS) 9 on "Revenue Recognition" and the Guidance note on "Recognition of Revenue by Real Estate Developers".

Since, in terms of provisions of the Income Tax Act, 1961 the income accrues upon delivery of physical possession/deemed possession of constructed unit and as deduction u/s 80IB(10) is claimed by the company after completion of construction, 'Net Profit' for computing Total Income under the said Act is as follows: -

6) On the basis of physical verification of assets, as specified in Accounting Standard - 28 and cash generation capacity of those assets, in the management perception there is no impairment of such assets as appearing in the balance sheet as on March 31,2012.

7) Unabsorbed MAT credit to be allowed in future years amounts toRs 363,013,527/- (Rs 239,257,176/-)

8) a) Previous year figures above are indicated in brackets.

b) Previous year figure have been regrouped/rearranged, wherever found necessary.'

---

Mar 31, 2011

1 Contingent Liability, not provided for, in respect of : (a) Contested demand of

Sl. Rs. in Lakhs Rs. in Lakhs No. 2010-11 2009-10

1. Income tax and penalty 6.90 6.90

2. ESIC 4.28 4.28

3. Cess - Sonari land 29.15 19.43

(b)Contested claim of the Government of Rajasthan for refund of State Capital Subsidy including interest Rs. 52.50 lakhs (Rs. 50.25 lakhs).

(c)Corporate Guarantee in favour of Housing Development Finance Corporation Ltd. against borrowing of Rs. NIL Crores (Rs. 1.61 Crores) by M/s. Ashiana Greenwood Developers, a firm in which the company is a partner.

2 Estimated amount of contracts remaining to be executed on capital account and not provided for amounts (net of advance) to Rs. Nil (Rs. 8.74 lakhs)

3 Paid up Share Capital of the Company includes 1993100 (P.Y.1993100) Equity Shares, allotted pursuant to Schemes of Amalgamation without payment being received in cash and 13256855 (P.Y.13382750) Equity Shares, allotted as fully paid up Bonus Shares, by capitalisation of General Reserves.

4 a. Pursuant to Order dated 21st March, 2011 of the Honble High Court at Kolkata, certified true copy whereof was filed with the Registrar of Companies, West Bengal on the 11th May, 2011, erstwhile Ashiana Retirement Villages Limited (Transferor company), has been amalgamated with the company w.e.f. 1st April , 2010 and these accounts have been prepared accordingly. The net surplus of Rs. 54148464 remaining after adjustments, dividend from the transferor company to the transferee company Rs. 9240050 and dividend from the transferee Company to the transferor Company Rs. 786113 have been credited to "General Reserves".

b. Increase in Authorised Capital represents 10000000 Equity Shares of Rs. 10/- each of the Transferor company added in terms of Scheme of Amalgamation as referred in (5)a. above.

c. The Issued, Subscribed and Paid up Share Capital has been reduced from 18735850 Equity shares of Rs. 10/- each to 18609955 Equity Shares of Rs. 10/- each due to inter-se cancellation of 125895 Equity shares upon amalgamation.

5 Method of Accounting for recognisation of Revenue in respect of Real Estate Projects has been changed, as evident in the related Accounting Policies hereinabove. There is however, no effect on the profit for the year due to such change.

6 a. In view of non confirmation/response from the suppliers regarding their status as SSI units, the amount due to Small Scale Industrial undertaking can not be ascertained.

b. Due to non receipt of confirmation/response from the suppliers for compliance under the Micro, Small and Medium Enterprises Development Act, 2006, the company is unable to provide the information required under the said Act.

7 Related parties and transactions with them as specified in the Accounting Standard 18 on "Related Parties Disclosures" issued by ICAI has been identified and given below on the basis of information available with the company and the same has been relied upon by the auditors.

Related Parties & Relationship

a. Enterprises that directly, or indirectly through one or more intermediaries, Control or are controlled by or are under common control with the company (including holding companies, subsidiaries and fellow Subsidiaries):

Defined Benefit Plan

The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognises each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

8 These accounts have been prepared as per the revised Accounting Standard (AS) 9 on "Revenue Recognition" and the Guidance note on "Recognition of Revenue by Real Estate Developers".

9 On the basis of physical verification of assets, as specified in Accounting Standard - 28 and cash generation capacity of those assets, in the management perception there is no impairment of such assets as appearing in the balance sheet as on 31.03.2011.

10 a. Buildings under Fixed Assets include Rs. 39,874,160 pending registration in the name of the company.

b. Depreciation includes differential depreciation of Rs. 503,500/- vis a vis written down value as per Income Tax Act, 1961 relating to building transferred to Investment.

11 Unabsorbed MAT credit to be allowed in future years amounts to Rs. 239,257,176/-

12 a. Previous year figures above are indicated in brackets.

b. Previous year figure have been regrouped/rearranged, wherever found necessary.

---

Mar 31, 2010

1. Contingent Liability, not provided for, in respect of:

a) Contested Demand of

Sl. No. (Rs.) in lakhs (Rs.) in lakhs

1. Income lax and penalty 6.90 (6.90)

2. ESIC 4.28 (4.28)

3. Additional Lease Rent Nil (34.73)

4. Provident Fund Nil (185.26)

5. Cess - onari land 19.43 _ (9.72)



(b) Show cause notice received for service tax Rs.Nil lakhs (Rs. 267.93 lakhs).

(c) Contested claim of the Government of Rajasthan for refund of State Capital Subsidy including interest Rs. 50.25 lakhs (Rs. 48.00 lakhs).

(d) Corporate Guarantee in favour of Housing Development Finance Corporation Ltd. against borrowingof Rs.1.61 Cr(Rs. Nil) by M/s. Ashiana Greenwood Developers, a firm in which the company is a partner.

2. Estimated amount of contract remaining to be executed on capital account and not provided for amounts (net of advance) to Rs. 8.74 lakhs (Rs. 5.20 lakhs).

3. Paid up Share Capital of the Company includes 19,93,100 Equity Shares, allotted pursuant to Schemes of Amalgamation without payment being received in cash and 1,33,82,750 Equity Shares, alloted as fully paid up Bonus Shares, by capitasation of General Reserves.

4. (a) In view of non confirmation/response from the suppliers regarding their status as SSI units, the amount due to Small Scale Industrial undertaking can not be ascertained.

(b) Due to non receipt of confirmation/response from the suppliers for compliance under the Micro, Small and Medium Enterprises Development Act, 2006, the company is unable to provide the information required under the said Act.

5. (a) Loans and advances includes Rs. 1,513,642/- (P.Y. Rs.1,658, 489/-) due from Ashiana Retirement Villages Limited, a company under the same management, Maximum Amount outstanding at any time during the year is Rs. 1,658,489/- (P.Y. Rs.1,658,489/-).

(b) Sundry Debtors includes Nil (P.Y. Rs.2,838,289/-) due from Ashiana Retirement Villages Limited, a company under the same management, Maximum Amount outstanding at any time during the year is Rs. 2,868,461 (P.Y. Rs.7,286,680/-).

6. These accounts have been prepared as per the revised Accounting Standard (AS) 9 on "Revenue Recognition" and the Guidance note on "Recognition of Revenue by Real Estate Developers".

7. On the basis of physical verification of assets, as specified in Accounting Standard - 28 and cash generation capacity of those assets, in the management perception there is no impairment of such assets as appearing in the balance sheet as on 31.03.2010.

8. Unabsorbed MAT credit to be allowed in future years amounts to Rs. 1 34,721,483/-

9. (a) Previous year figures above are indicated in brackets.

(b) Previous year figure have been regrouped/rearranged, wherever found necessary.