Notes to Accounts of Diamant Infrastructure Ltd.

Mar 31, 2024

The assessments undertaken in recognising provisions and contingencies have been made in
accordance with the applicable Ind AS.

Provisions represent liabilities to the Company for which the amount or timing is uncertain.
Provisions are recognized when the Company has a present obligation (legal or constructive),
as a result of past events, and it is probable that an outflow of resources, that can be reliably
estimated, will be required to settle such an obligation. If the effect of the time value of
money is material, provisions are determined by discounting the expected future cash flows to
net present value using an appropriate pre-tax discount rate that reflects current market
assessments of the time value of money and, where appropriate, the risks specific to the
liability. Unwinding of the discount is recognized in the statement of profit and loss as a
finance cost. Provisions are reviewed at each reporting date and are adjusted to reflect the
current best estimate.

In the normal course of business, contingent liabilities may arise from litigation and other
claims against the Company. Guarantees are also provided in the normal course of business.
There are certain obligations which management has concluded, based on all available facts
and circumstances, are not probable of payment or are very difficult to quantify reliably, and
such obligations are treated as contingent liabilities and disclosed in the notes but are not
reflected as liabilities in the financial statements. Although there can be no assurance
regarding the final outcome of the legal proceedings in which the Company involved, it is not
expected that such contingencies will have a material effect on its financial position or
profitability.

l) Earnings per share

The Company presents basic and diluted earnings per share ("EPS") data for its equity shares.
Basic EPS is calculated by dividing the profit and loss attributable to equity shareholders of the
Company by the weighted average number of equity shares outstanding during the period.
Diluted EPS is determined by adjusting the profit and loss attributable to equity shareholders
and the weighted average number of equity shares outstanding for the effects of all dilutive
potential equity shares.

m) Segment Reporting

Operating segments are reported in a manner consistent with the internal reporting provided
to the chief operating decision-maker. Revenue and expenses are identified to segments on
the basis of their relationship to the operating activities of the segment. Inter segment
revenue are accounted for based on the cost price. Revenue, expenses, assets and liabilities
which are not allocable to segments on a reasonable basis, are included under "Unallocated
revenue/ expenses/ assets/ liabilities".

n) Cash Flow Statement

Cash flows are reported using indirect method as set out in Ind AS -7 "Statement of Cash
Flows", whereby profit / (loss) before tax is adjusted for the effects of transactions of non¬
cash nature and any deferrals or accruals of past or future cash receipts or payments. The
cash flows from operating, investing and financing activities of the Company are segregated
based on the available information.

o) Leases

The determination of whether an arrangement is (or contains) a lease is based on the
substance of the arrangement at the inception of the lease. The arrangement is, or contains,
a lease if fulfilment of the arrangement is dependent on the use of a specific asset or assets
and the arrangement conveys a right to use the asset or assets, even if that right is not
explicitly specified in an arrangement.

For arrangements entered into prior to 1 April 2017, the Company has determined whether
the arrangement contains lease on the basis of facts and circumstances existing on the date
of transition.

Company as a lessee

A lease is classified at the inception date as a finance lease or an operating lease. A lease that
transfers substantially all the risks and rewards incidental to ownership to the Company is
classified as a finance lease.

Finance leases are capitalised at the commencement of the lease at the inception date fair

value of the leased property or, if lower, at the present value of the minimum lease payments.
Lease payments are apportioned between finance charges and reduction of the lease liability
so as to achieve a constant rate of interest on the remaining balance of the liability. Finance
charges are recognised in finance costs in the statement of profit and loss, unless they are
directly attributable to qualifying assets, in which case they are capitalized in accordance with
the Company''s general policy on the borrowing costs. Contingent rentals are recognised as
expenses in the periods in which they are incurred.

Operating lease payments are recognised as an expense in the statement of profit and loss on
a straight-line basis over the lease term.

p) Use of Estimates and Judgments

The preparation of the financial statements in conformity with Ind AS requires management to
make judgements, estimates and assumptions that affect the application of accounting policies
and the reported amounts of assets, liabilities, income, expenses and disclosures of contingent
assets and liabilities at the date of these financial statements and the reported amounts of
revenues and expenses for the years presented. Actual results may differ from these estimates
under different assumptions and conditions.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to
accounting estimates are recognised in the period in which the estimate is revised and future
periods affected.

In particular, information about significant areas of estimation uncertainty and critical
judgments in applying accounting policies that have the most significant effect on the
amounts recognized in the financial statements are elaborated in note no 34 .

Fund based Cash credit facility (sanctioned amount '' 800 lacs) and non fund based Bank Guarantee Facility (sanctioned limit of '' 50 lacs) from Union Bank of
India is secured primarily by way of hypothecation of movable current assets of the company including stock of materials, work in progress, finished goods and
whole of the company’s bills outstanding, receivables, book debts and collaterally by mortgage of Flat at Mumbai and Nagpur and office premises at Nagpur in
the name of the Managing Director, Mr. Naresh Saboo jointly with his wife Mrs. Madhu Saboo and pledge of 50,00,000 equity shares of '' 2/- each of the
company held by the promoter company M/s Saboo Capital and Securities Pvt Ltd and also by personal guarantee of Mr. Naresh S. Saboo, Managing Director
and Madhu Saboo, wife of Managing Director and corporate guarantee by the promoter company M/s. Saboo Capital and Securities Pvt Ltd.

The balances appearing under unsecured loans, sundry creditors, sundry debtors, loans and advances, and certain banks are subject to confirmation and
reconciliation and consequential adjustment, if any, will be accounted for in the year of confirmation and/or reconciliation

In the opinion of the Board, assets other than fixed assets do have a value on realisation in the ordinary course of business at least equal to the amount at which

* they are stated.

31.2 The Company does not have any employee on payroll from the mid of 2016 and hence we have not provided any provisions for gratuity, leave encashment etc.

The sales tax department in the finacial year 2013-14, raised a demand on the company for 74,64,088/-, against which the Company has preferred an appeal
against the department with the Deputy Commissioner of Sales Tax (Appeals). The DCST Appeals has decided the appeal on 28-02-2022 and raised a final
31*3 demand of Rs. 12,50,722/- on the company. The company had already deposited 4,14,473/- as pre deposit. Thus, there was a final demand outstanding of Rs.
8,36,249/- The company has finally settled the demand amount under Maharashtra Settlement of Arrears of Tax, Interest, Penalty or Late Fees Act, 2022 at
20% i.e. Rs. 1,67,500/- as per Settlement Order dated 15-09-2022 and the same has been paid.

The LBT (Local Body Tax Department) of the Nagpur has raised a demand order against payment of tax liability with interest and penalty for which company
has filled an appeal in front of Commissioner Appeal by depositing the only duty demanded but the same has been paid under protest, the order has been passed

* by the commissioner against the company and the company has been directed to pay 75,20,319/- includes Interest and Penalty. But the company has filled an
Pitition against the order of the Commissioner in the High Court, and till the date of audit no judgement has been passed on the same.

During the current year there were no employees on the payroll. All the above facts cause significant doubt as to going concern principle. However the

* management believes that the event & facts are temporary in nature & they will continue as a Going Concern.

For the purpose of valuation of Investments in Ginger Infrastructure Pvt Ltd , book value as per last year balance sheet is considered as the value of the

* investments due to non availability of latest Audited balance sheet of Ginger Infrastructure Pvt Ltd for calculating the book value per share of the investments.

The company has some long outstanding debt which have not been materialise from that time. On enquring regarding the same we have been informed that the
following debtors namely M/s. Sudhir Constructions, Ginger Banquets Pvt Ltd, Mr. Govind Pathak, Khushi Ram Kundnani, M/s. Desire have disputed the matter
31*7 from very long and they are not ready to pay any dues stating that company had supplied lower quality material and due to lower quality supply they are asking
for some compensation from the comapny, due to this ongoing matter the balances appearing to the this debtor account has been writeen off during the F.Y.

2022-23 by the managment.

The company has some long outstanding Trades Receivable with contractors which have not materialised since long. On enquring regarding the same we have
been informed that due to long ongoing disputed with these contractors the credit balance to their account is not likely to be paid and hence the balances

* appearing as credit balance in Trades Receivable with these contractors namely - a) NSSL Pvt. Ltd. have been writren off during the F.Y. 2022-23 by the
managment.

The company had some long outstanding debt which had not materialised since a long time and the debtor namely M/s. A N Traders & Contacators was written
31*9 off during the F.Y. 2021-22. The same has been writen back by the managment to the extent of Rs. 20 lakhs as an amount of Rs. 20 lakhs has been recovered
from them during the F.Y. 2022-23.

Â¥

The company has some long outstanding Advance which have not materialised since long. On enquring regarding the same we have been informed that due to
31*10 long ongoing disputes with these the debit balance to their account is not likely to be recovered and hence the balances appearing as Advances namely - a) Shri
Govind Pathak - Rs. 7,00,000 have been writren off during the year by the managment.

The company has some long outstanding Security Deposits which have not materialised since long. On enquring regarding the same we have been informed that
31*11 due to long ongoing disputes with the party the Security Deposit is not likely to be recovered and hence the balances appearing as Security Deposit - a) Ashoka
Buildcon Limited - Rs. 15,98,492 have been writren off during the year by the managment.

32 Segment Information

The company has identified business segments as its primary segment. Business segments are primarily Infrastructure
and Trading. Revenues and expenses directly attributable to segments are reported under each reporatble segment.

Expenses which are not directly identifiable to each reportable segment have been allocated on the basis of associated
revenues of the segment and manpower efforts. All other expenses which are not attributable or allocated to segments
have been disclosed as unallocable expenses. From the previous year company has closed all its segments therefore
previous year and current year figures have not been reported. Assets and liabilities that are directly attributable or
allocable to segments are disclosed under each reportable segment. All other assets and liabilities are disclosed
unallocable.

Note-34 Critical estimates and judgements in applying accounting policies

The management believes that the estimates used in preparation of the financial statements are
prudent and reasonable. Information about estimates and judgements made in applying
accounting policies that have the most significant effect on the amounts recognized in the
financial statements are as follows:

i) Property, plant and equipment and useful life of property, plant and equipment and
intangible assets

The carrying value of property, plant and equipment is arrived at by depreciating the assets over
the useful life of assets. The estimate of useful life is reviewed at the end of each financial year
and changes are accounted for prospectively.

ii) Impairment of non-financial assets

Impairment exists when the carrying value of an asset or cash generating unit exceeds its
recoverable amount, which is the higher of its fair value less costs of disposal and its value in
use. The fair value less costs of disposal calculation is based on available data from binding sales
transactions, conducted at arm''s length, for similar assets or observable market prices less
incremental costs for disposing of the asset.

iii) Provisions and contingencies

The assessments undertaken in recognising provisions and contingencies have been made in
accordance with the applicable Ind AS.

A provision is recognized if, as a result of a past event, the Company has a present legal or
constructive obligation that can be estimated reliably, and it is probable that an outflow of
economic benefits will be required to settle the obligation. Where the effect of time value of
money is material, provisions are determined by discounting the expected future cash flows.

In the normal course of business, contingent liabilities may arise from litigation and other claims
against the Company. Guarantees are also provided in the normal course of business. There are
certain obligations which management has concluded, based on all available facts and
circumstances, are not probable of payment or are very difficult to quantify reliably, and such
obligations are treated as contingent liabilities and disclosed in the notes but are not reflected as
liabilities in the financial statements. Although there can be no assurance regarding the final
outcome of the legal proceedings in which the Company involved, it is not expected that such
contingencies will have a material effect on its financial position or profitability

FOR DIAMANT INFRASTRUCTURE LIMITED, AS PER OUR REPORT OF EVEN DATE ATTACHED,

FOR R. A. GUPTA & ASSOCIATES;
CHARTERED ACCOUNTANTS,
Regn. No. 128210W,

Managing Director NAGPUR

Naresh Saboo 30-05-2024

(DIN : 0297916)

( CA Prateek Rajesh Gupta )
Partne r

Membership No. 168890

Director
Madhu Saboo
(DIN : 0395363 )

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Mar 31, 2014

Note - 1 Segment information

The Company has identified business segments as its primary segment. Business segments are primarily Infrastructure and Trading. Revenues and expenses directly attributable to segments are reported under each reportable segment. Expenses which are not directly Identifiable to each reportable segment have been allocated on the basis of associated revenues of the segment and manpower efforts. All other expenses which are not attributable or allocable to segments have been disclosed as unallocable expenses. Assets and liabilities that are directly attributable or allocable to segments are disclosed under each reportable segment. All other assets and liabilities are disclosed as unallocable.

Note - 2 Additional information to the financial statements

Note Particulars 31st March 2014 31st March 2013 (Rs.) (Rs.)

2.1 Contingent liabilities and commitments (to the extent not provided for)

(i) Contingent liabilities

(a) Claims against the Company not acknowledged as debt Demand Notice from Sales tax (Refer Note 23.18 below) 22,00,000/- 22,00,000/- Penalty - Sales tax - on the above Not Not demand notice Determinable Determinable

(b) Guarantees

Mobilisation Bank Guarantee issued by Union Bank of India - 2,00,00,000/- During the Year bank guarantee worth of Rs. 1,50,00,000/- had been wrongly revoked by Ashoka Buildcon Ltd. And because of that the Company had issued a Legal Notice to Ashoka Buildcon Ltd. for the recovery of the same and which has been repaid by Ashoka Buildcon Ltd. during the same financial year.

(c) Performance bank Guarantee 38,50,000/- -

(Against this 25% margin money of Rs. 9,62,500/- in the form Fixed deposit with Union Bank of India has been earmarked) and the same has been Included in Note. 12

(d) Defect Liability period in respect of contracts Not Not executed Determinable Determinable

3. Fund based Cash credit facility (sanctioned amount Rs. 800 lacs), and Ad Hoc Fund Based Cash Credit of Rs 100 Lacs, non fund based Bank Guarantee Facility (sanctioned limit of Rs. 320 lacs) from Union Bank of India is secured primarily by way of hypothecation of movable current assets of the company including stock of materials, work in progress, finished goods and whole of the company''s bills outstanding, receivables, book debts and collaterally by mortgage of Flat at Mumbai and Nagpur and office premises at Nagpur in the name of the Managing Director, Mr. Naresh Saboo jointly with his wife Mrs. Madhu Saboo and pledge of 50,00,000 equity shares of Rs. 21- each of the company held by the promoter company M/s Saboo Capital and Securities Pvt Ltd and also by personal guarantee of Mr. Naresh S. Saboo, Managing Director and Madhu Saboo, wife of Managing Director and corporate guarantee by the promoter company M/s. Saboo Capital and Securities Pvt Ltd.

4. Disclosures required under Section 22 of the Micro, Small and Medium Enterprises Development Act, 2006 Micro, Small and Medium Enterprises in terms of section 22 of the Micro, Small and Medium Enterprises Development Act, 2006 have been determined to the extent such parties have been identified on the basis of information available with the Company and relied upon by the auditors. The Company has not received any instruction from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence, disclosures if any, relating to amounts unpaid as at the yearend together with interest payable as required under the said Act have not been given.

5. The balancesappearing under unsecured loans, sundry creditors, sundry debtors, loans and advances, and certain banks are subject to confirmation and reconciliation and consequential adjustment, if any, will be accounted for in the year of confirmation and/or reconciliation

6. In the opinion of the Board, assets other than fixed assets do have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated.

7. Since the Company recognises gratuity and leave salary expense on payment basis no liability for the same has been ascertained and provided in the accounts. Hence, the company has not complied with the provisions of AS-15 "Accounting for Retirement Benefit".

8. The sales tax department in the finacial year 2011 -12, raised a demand on the company for Rs. 22,00,000/-, against which the Company has preferred an appeal against the department with the Assistant Commissioner of Sales Tax (Appeals). The company has already deposited Rs. 10,50,000/- of the demand raised under protest. Based on the prevalent decisions of the appellate authorities and the interpretations of the other relevant provisions, the company has been legally advised that the demand is likely to be either deleted or substantially reduced and accordingly no provision for the balance demand has been done.

9. The Income Tax Departnent, Mumbai has raised a Demand of Rs. 28,70,971/- U/s 143(3) for the Year 2009-10, for which the Company has preffered an Appeal which is Pending with Commissioner of Income Tax, Appeals-37, Mumbai. However, there is no Provision is made by the Company to discharge the liability. Based on the prevalent decisions of the appellate authorities and the interpretations of the other relevant provisions, the company has been legally advised that the demand is likely to be either deleted or substantially reduced and accordingly no provision for the balance demand has been done.

10. The Revised Schedule VI has become effective from 1 April, 2011 for the preparation of financial statements for the period beginning from 1 st April 2011 by virtue of the Notification No.653 (E) dated March 30,2011. This has significantly impacted the disclosure and presentation made in the financial statements. The management has prepared the financial statements providing appropriate disclosures as required by the said revised Schedule VI and based on the various guidance notes issued in this regard. Accordingly previous year''s figures have been regrouped/reclassified and re-instated wherever necessary to correspond with the current year''s classification/disclosure as per the revised Schedule VI.

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Mar 31, 2013

Note - 1 Segment information

The Company has identified business segments as its primary segment Business segments are primarily Infrastructure, Tading and Realty. Revenues and expenses directly attributable to segments are reported under each reportable segment Expenses which are not directly identifiable to each reportable segment have been allocated on the basis of associated revenues of the segment and manpower efforts. All other expenses which are not attributable or allocable to segments have been disclosed as unallocable expenses. Assets and liabilities that are directly attributable or allocable to segments are disclosed under each reportable segment All other assets and liabilities are disclosed as unallocable.

2.1 Fund based Cash credit facility (sanctioned amount Rs. 800 lacs), and Ad Hoc Fund Based Cash Credit of Rs 100 Lacs, non fund based Bank Guarantee Facility (sanctioned limit of Rs. 200 lacs) from Union Bank of India is secured primarily by way of hypothecation of movable current assets of the company including stock of materials, work in progress, finished goods and whole of the company''s bills outstanding, receivables, book debts and collaterally by mortgage of Flat at Mumbai and Nagpur and office premises at Nagpur in the name of the Managing Director, Mr. Naresh Saboo jointly with his wife Mrs. Madhu Saboo and pledge of 50,00,000 equity snares of Rs. 21- each of the company held by the promoter company M/s Saboo Capital and Securities Pvt Ltd and also by personal guarantee of Mr. Naresh S. Saboo, Managing Director and Madhu Saboo, wife of Managing Director and corporate guarantee by the promoter company M/s. Saboo Capital and Securities Pvt Ltd.

2.2 Disclosures required under Section 22 of the Micro, Small and Medium Enterprises Development Act, 20O6

Micro. Small and Medium Enterprises in terms of section 22 of the Micro, Small and Medium Enterprises Development Act. 2006 have been determined to the extent such parties have been identified on the basis of information available with the Company and relied upon by the auditors. The Company has not received any instruction from suppliers regarding their status under the Micro, Small and Medium Enteiprises Development Act 2006 and hence, disclosures if any. relating to amounts unpaid as at the yearend together with interest payable as required under the said Act have not been given.

2.3 The Company in the Extra Ordinary General Meeting (EOGM) of the company held on 24th December, 2010, had approved the issue and allotment of 37,00,000/- Warrants at 140/- per warrant convertible into Equity shares of Rs. 21- each at a premium of Rs. 38/- per share in accordance with the provistonsyrf the Companies Act, 1956 and Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) RegulatK3n,%009 to promoters and non-promoters Accordingly, 25% of the total consideration of Rs. 14,80,00,000/- i. e Rs. 3,70,00,000/- has been received by the company and in-principle approval of the Mumbai Stock Exchange (BSE) for the same had also been obtained. The warrants were due for conversion into equivalent number of shares on payment of the balance amount at any time on or. before 17th July. 2012. Since, the subscribers to the preferential allotment have failed to honour their balance comitment of 75%, the company has Fortied the same and the amount of Rs 3,70,00,000/- trtansferred to Capital Reserve (Reserve & Surplus).

2.4 The balances appearing under unsecured loans, sundry creditors, sundry debtors, loans and advances, and certain banks are subject to confirmation and reconciliation and consequential adjustment if any, wB be accounted for in the year of confirmation and/ or reconciliation

2.5 In the opinion of the Board, assets other than fixed assets do have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated.

2.6 Since the Company recognises gratuity and leave salary expense on payment basis no liability for the same has been ascertained and provided in the accounts. Hence, the company has not compied with the provisions of AS-15 "Accounting for Retirement Benefit".

2.7 The sales tax department had in the previous year, raised a demand on the company for Rs. 22.00,000/-, against which the Company has preferred an appeal against the department with the Assistant Commissioner of Sales Tax (Appeals). The company has already deposited Rs. 10,50,000/- of the demand raised under protest. Based on the prevalent decisions of the appeBate authorities and the interpretations of the other relevant provisions, the company has been legaly advised that the demand is likely to be either deleted or substantially reduced and aaonJngry no provision for the balance demand has been done.

2.8 The Income Tax Departnent, Mumbai has raised a Demand of Rs. 28,70,971/- U/s 143(3) for the Year 2009-10, for which the Company has preffered an Appeal which is Pending with Commissioner of Income Tax, Appeals-37, Mumbai. However, there is no Provision is made by the Company to discharge the BaMity. Based on the prevalent decisions of the appellate authorities and the interpretations of the other relevant provisions, the company has been legally advised that the demand is likely to be either deleted or substanu''aty reduced and accordingly no provision for the balance demand has been done.

2.9 The company has incurred a net loss of Rs. 1,77,84,464/- in Infjpsturcutre segment during the Financial Year 2012-13.

2.10 The Revised Schedule VI has become effective from 1 April, 2011 for the preparation of financial statements for the period begiining from 1st April 2011 by virtue of the Notification No.653 (E) dated March 30, 2011. This has significantly impacted the dfedosure and presentation made in the financial statements. The manager^ has prepared the financial statements providing appropriate disclosures as required by the said revised Schedule VI and based on the various guidance notes issued in this regard. Accordingly previous year''s figures have been regrouped/reclassifted and re-instated wherever necessary to correspond with the current year''s dassifiration/disctosure as per the revised Schedule VI.

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Mar 31, 2012

Note - 1 Segment Information

The Company has identified business segments as its primary segment Business segments are primarily infrastructure, Trading and Realty. Revenues and expenses directly attributable to segments are reported under each reportable segment. Expenses which are not directly identifiable to each reportable segment have been allocated on the basis of associated revenues of the segment and manpower efforts. All other expenses which are not attributable or allocable to segments have been disclosed as unallocable expenses. Assets and liabffities that are directly attributable or allocable to segments are disclosed under each reportable segment All other assets and liabilities are disclosed as unallocable.

NOTE paticulars Note As at 31st As at 31st NO March 2012 31st March. 2011 (Rs.) (Rs.)

2.1 Contingent liabilities and commitments (to the extent not provided for)

(I) Contingent liabilities

(a) Claims against the Company not acknowledged as debt Demand Notice from Sales tax (Refer Note 23.18 below) 22,00,000/- 22,00,000/-

Penalty - Sales tax - on the above demand notice Not Determinable Not Determinable

(b) Guarantees

Mobilisation Bank Guarantee issued by Union Bank of India 2,00,00,0001- 1,50,00,000/-

(Against this 25% margin money of Rs. 50,00,000/-

in the form Fixed deposit with Union Bank of India has been earmarked and the same has been included in note 12)

c) Defect Liability period in respect of contracts executed Not Determinable Not Determinable

Note: Figures in bracket indicates previous years figures

Further all the above borrowings are also secured either by way of guarantee by the promoter company M/s. Saboo Capital and Securities Pvt Ltd and/or personal guarantee of Mr. Naresh S. Saboo, Managing Director. Further, the secured borrowings are repayable over a period of 3 to 5 years.

Note: Figures In bracket Indicates previous years figures

All the above borrowings are also secured either by way of guarantee by the promoter company M/s. Saboo Capital and Securities Pvt Ud and/or personal guarantee of Mr. Naresh S. Saboo, Managing Director.

2.2 Fund based Cash credtt facility (sanctioned amount Rs. 700 lacs), adhoc limit of * 100 lacs, non fund based Bank Guarantee Facility (sanctioned limit of Rs. 200 lacs) and LC Foreign facility X 100 lacs from Union Bank of Indut is secured primarily by way of hypothecation of movable current assets of the company including stock of materials, work in progress, finished goods and whole of the company's bills outstanding, receivables, book debts and collaterally by mortgage of Flat at Mumbai and Nagpur and office premises at Nagpur in the name of the Managing Director, Mr. Naresh Saboo jointy with his wife Mrs. Madhu Saboo and pledge of 50,00,000 equity shares of * 21- each of the company held by the promoter company M/s Saboo Capital and Securities Pvt Ud and also by personal guarantee of Mr. Naresh S. Saboo, Managing Director and Madhu Saboo, wife of Managing Director and corporate guarantee by the promoter company M/s. Saboo Capital and Securities Pvt Ud.

2.3 Disclosures required under Section 22 of the Micro, Small and Medium Enterprises Development Act, 2006

Micro, Small and Medium Enterprises in terms of section 22 of the Micro, Small and Medium Enterprises Development Act, 2006 have been determined to the extent such parties have been identified on the basis of information avalable with the Company and relied upon by the auditors. The Company has not received any instruction from suppiers regartfng their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence, disclosures if any, relating to amounts unpaid as at the yearend together with interest payable as required under the said Act have not been given.

2.4 The Company in the Extra Ordinary General Meeting (EOGM) of the company held on 24th December, 2010, had approved the issue and allotment of 37,00,000/- Warrants at Rs. 40/- per warrant convertible into Equity shares of 7 21- each at a premium of Rs. 38/- per share in accordance with the provisions of the Companies Act, 1956 and Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulation, 2009 to promoters and non-promoters Accordingly, 25% of the total consideration of Rs. 14,80,00,000/- i. e Rs. 3,70,00,000/- has been received by the company and in-principle approval of the Mumbai Stock Exchange (BSE) for the same had also been obtained. The warrants were due for conversion into equivalent number of shares on payment of the balance amount at any time on or before 17th July, 2012. Since, the subscribers to the preferential allotment have failed to honour their balance commitment of 75%, the company is seeking an application with SEBI for relaxation in the strict compliance of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulation, 2009 Subject to the outcome of the application to SEBI, the amounts have been reflected as money received under Share warrants.

2.5 Other loan and advances includes: a) t 7,00,00,000/- (As at 31st March, 2011 Rs. 7,00,00,000/-) (agreement value) advanced towards property at Pune for which the agreement for sale had been entered and registered in the name of the company. However the deed of conveyance has not been executed and hence not registered, due to Rs. 1,32,50,000/- out of the total consideration of Rs. 7,00,00,000/- being outstanding to be paid by the company to the vendors on account of ongoing litigation. The outstanding amount has been fully provided for in the accounts.

b) 7 3,87,29,381/- (As at 31st March, 2011 Rs. 6,00,00,000/-) receivable from M/s Tarangan Infraventures Private Limited (TIPL). The land development agreement with T1PL in the previous year to redevelop the property at Pune has been canoeNed during the year due to non fulfilment of the obligation by TIPL as specified in the said agreement. The company has post cancellation of the agreement, received only part of the amount advanced in the previous year and had therefore entered into a Memorandum of Understanding (MOU) dated 13th October, 2011 with TIPL according to which interest O 15% on such outstanding amounts shall be payabale by TIPL from December 2011 till date of payment. Accordingly the company has recognised interest upto 31st March, 2012 aggregating to Rs. 18,65,979/- which has been included in other income in Note 15. The company is confident to recover the balance principal along with applicable interest from TIPL and hence the total amount o/s is good according to the management and no provisioning is required for the same.

2.5 The balances appearing under unsecured loans, sundry creditors, sundry debtors, loans and advances, and certain banks are subject to confirmation and reconciliation and consequential adjustment, if any, will be accounted for in the year of confirmation and/or reconciliation

2.6 In the opinion of the Board, assets other than fixed assets do have a value on realization in the ordinary course of business at least equal to the amount at which they are stated.

2.7 Uncertified contract revenue of Rs. 21,07,009/- includes work executed by the company which has not yet been certified by the principal contractors. The management has determined the value of the uncertified revenue based on the cost incurred by the company in relation to the same.

2.8 Since the Company recognises gratuity and leave salary expense on payment basis no liability for the same has been ascertained and provided in the accounts. Hence, the company has not complied with the provisions of AS-15 “Accounting for Retirement Benefit”. 23.17 The Company leases office under cancelable operating lease agreements that are renewable on a periodic basis at the option of both the lessor and the lessee. Rental payments under such leases are 7 13,84,111/- and Rs. 7,39,580/- during the year ended 31st March, 2012 and 2011 respectively.

2.9 The sales tax department had m the previous year, raised a demand on the company for T 22,00,000/-, against which the Company has preferred an appeal against the department with the Assistant Commissioner of Sales Tax (Appeals). The company has already deposited Rs. 10,50,000/- of the demand raised under protest. Based on the prevalent decisions of the appellate authorities and the interpretations of the other relevant provisions, the company has been legally advised that the demand is likely to be either deleted or substantially reduced and accordingly no provision for the balance demand has been done.

2.10 The management has carried out the assessment on impairment of individual assets by working out the recoverable amount based on lower of the net realisable value and carrying cost during the period in terms of AS 28 on “Impairment of Assets* issued by the Institute of Chartered Accountants of India. Accordingly, impairment loss of 1 26,77,395/- has been recognised in respect of various assets for the year.

2.11 The company has capitalised interest of 7 22,93,230/- paid on capital borrowed for acquisition of Plant and Equipment till the date of the asset being put to use in terms of the provisions of AS-16 “Borrowing Cost* issued by The Institute of Chartered Accountants of India.

2.12 The company has during the year reversed excess depreciation' 'charged in the previous years aggregating to an amount of Rs. 2,07,611/-.

2.13 The Revised Schedule VI has become effective from 1 April, 2011 for the preparation of financial statements for the period beginning from 1st April 2011 by virtue of the Notification No.653 (E) dated March 30, 2011. This has significantly impacted the disclosure and presentation made in the financial statements. The management has prepared the financial statements providing disclosures as required by the said revised Schedule VI and based on the guidance notes issued in this regard. Accordingly previous year's figures have been regrouped/reclassified and re-instated wherever necessary to correspond with the current year's classification/disclosure as per the revised Schedule VI.

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Mar 31, 2011

1. Contingent Liabilities

a) Claims against the company not acknowledged as Debts:

Demand notice from IncomeTax for Assessment Year 2003-04 (Refer Note 12 below) Rs.15,80,957/-

Penalty - Income Tax - Assessment Year 2003-04 Not determinable

Demand notice from Income Tax for Assessment Year 2008-09 Rs.3,26,676/- (Refer Note 12 below)

Penalty - Income Tax - Assessment Year 2008-09 Not determinable

Demand Notice from Sales tax (Refer Note 13 below) Rs.22,00,000/-

Sales Tax Reassessment for A.Y 2001 -02 Rs.1,64,673/-

Penalty Sales Tax Reassessment for A.Y 2001 -02 Not determinable

b) Performance Bank Guarantee issued by Union Bank of India Rs.1,50,00,000/-

c) Defect Liability period in respect of contracts executed Not determinable

2. The Company in the Extra Ordinary General Meeting (EOGM) of the company held on 24th December, 2010, approved the issue and allotment of Rs. 37,00,000/- Warrants at 7 40/- per warrant convertible into Equity shares of Rs.21- each at a premium of 7 38/- per share in accordance with the provisions of the Companies Act, 1956 and Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulation, 2009 to promoters and non-promoters Accordingly, 25% of the total consideration of Rs.14,80,00,000/- i. e Rs.3,70,00,000/- has been received by the company and in-principle approval of the Mumbai Stock Exchange (BSE) for the same is also obtained.

3. Fund based Cash credit facility (sanctioned amount Rs.700 lacs) and non fund based Bank Guarantee Facility (sanctioned limit of Rs.200 lacs) from Union Bank of India is secured primarily by way of hypothecation of movable current assets of the company including stock of materials, work in progress, finished goods and whole of the company's bills outstanding, receivables, book debts and collaterally by mortgage of Flat at Mumbai and Nagpur and office premises at Nagpur in the name of the Managing Director, Mr. Naresh Saboo jointly with his wife Mrs. Madhu Saboo and pledge of 50,00,000 equity shares of Rs.21- each of the company held by the promoter company M/s Saboo Capital and Securities Pvt Ltd and also by personal guarantee of Mr. Naresh S. Saboo, Managing Director and Madhu Saboo, wife of Managing Director and corporate guarantee by the promoter company M/s. Saboo Capital and Securities Pvt Ltd.

4. Uncertified contract revenue of Rs.84,57,414/- includes work executed by the company which has not yet been certified by the principal contractors. The management has determined the value of the uncertified revenue based on the cost incurred by the company in relation to the same.

5. Other advances includes:

- Rs.7,00,00,000/- (agreement value) advanced towards property at Pune for which the agreement for sale had been entered and registered in the name of the company. However the deed of conveyance has not been executed and hence not registered, due to Rs. 1,32,50,000/- out of the total consideration of Rs.7,00,00,000/- being outstanding to be paid by the company to the vendors on account of ongoing litigation. The outstanding amount has been fully provided for in the accounts.

- Rs.6,00,00,000/- advanced to M/s Tarangan Infraventures Pvt Ltd towards development agreement for the above mentioned Pune Property entered into by the company with M/s Tarangan Infraventures Pvt Ltd.

6. Since the Company recognises gratuity liability on payment basis, no liability for the same has been ascertained and provided in the accounts. Hence, the company has not complied with the provisions of AS-15 "Accounting for Retirement Benefits".

7. In spite of the absence of database identifying parties as Small Scale Industrial Undertakings (SSIs), it is of the opinion of the management that there are no dues payable to SSIs. The auditors have accepted the representation of the management in this regards.

8. Micro, Small and Medium Enterprises in terms of section 22 of the Micro, Small and Medium Enterprises Development Act, 2006 have been determined to the extent such parties have been identified on the basis of information available with the Company and relied upon by the auditors. The Company has not received any instruction from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence, disclosures if any, relating to amounts unpaid as at the year end together with interest payable as required under the said Act have not been given.

9. The balances appearing under unsecured loans, sundry creditors, sundry debtors, loans and advances, and certain banks are subject to confirmation and reconciliation and consequential adjustment, if any, will be accounted for in the year of confirmation and/or reconciliation.

10. In the opinion of the Board, the Current Assets, Loans and Advances have value on realisation in the ordinary course of business, at least equal to the amount at which they are stated in the Balance Sheet.

11. The disputed demand in respect of Income Tax outstanding for the Assessment Year 2003-04 is Rs.25,80,957/- against which the company has preferred an appeal against the order of the CIT (Appeals) with the Income Tax Appellate Tribunal, Mumbai. The company has already deposited Rs.12,05,990/- of the demand raised under protest. The disputed demand in respect of Income Tax outstanding for the Assessment Year 2008-09 is Rs.3,26,676/- against which the company has preferred an appeal with the CIT(Appeals), Mumbai. The company has already deposited 50% of the demand raised under protest.

Based on the prevalent decisions of the appellate authorities and the interpretations of the other relevant provisions, the company has been legally advised that the demand is likely to be either deleted or substantially reduced and accordingly provision for the balance demand has not been done.

12. The sales tax department has during the year under audit, raised a demand on the company for Rs.22,00,000/-, against which the Company has preferred an appeal against the department with the Assistant Commissioner of Sales Tax (Appeals). The company has already deposited Rs.10,50,000/- of the demand raised under protest. Based on the prevalent decisions of the appellate authorities and the interpretations of the other relevant provisions, the company has been legally advised that the demand is likely to be either deleted or substantially reduced and accordingly no provision for the balance demand has been done.

13. The Company leases office under cancellable operating lease agreements that are renewable on a periodic basis at the option of both the lessor and the lessee. Rental payments under such leases are Rs. 7,39,580/- and Rs.5,15,960/- during the year ended 31st March, 2011 and 2010 respectively.

14. Related party disclosures as required by AS-18 are given below

(a) List of Related Parties

Key Managerial Personnel

Naresh Saboo

Kamlesh Prasad

Devendra Balasaria

Relatives of Key Managerial Personnel

Madhoo Saboo

Santosh Saboo

Rakesh Prasad

Associated Concerns

Saboo Capital and Securities Pvt. Ltd.

Diamant Infrastructure Developers Pvt Ltd

Diamant Realty Pvt Ltd

Diamant Securities Pvt Ltd

15. The management was of the opinion that there were no impairment indicators that existed as on the balance sheet date. Hence no provision for the impairment loss has been done.

16. Previous years figures have been regrouped / re-classified in order to conform to current year's figures.

17. Balance Sheet and General Business Profile (in terms of Part IV of Schedule VI to the Companies Act, 1956) is annexed here with.

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Mar 31, 2010

1. Contingent Liabilities:

Claims against the company not acknowledged as Debts Not ascertainable

Income Tax - Assessment Year 2003-04 Rs. 15,80,957/- Penalty - Income Tax - Assessment

Year 2003-04 Not determinable Defect Liability period in respect of contracts executed Not determinable

Sales Tax Reassessment for A. Y. 2001-02 Rs. 1,64,673/-

Penalty Sales Tax Reassessment for AY 2001 -02 Not determinable

2. During the year under audit, 35,95,850 equity shares of Rs. 10/- each were allotted by the company as fully paid up bonus shares in the ratio of 3 (Three) equity shares for every 1 (One) equity share held by the shareholder of the company as on the record date, by capitalisation of Rs. 3,59,58,500/- from the available free reserves pursuant to resolution passed by the members at the Extra Ordinary General Meeting (EOGM) of the Company held on 25th January, 2010.

3. At the Extra Ordinary General Meeting (EOGM) of the company on 8th March, 2010, members passed a resolution to issue 22,45,000/- equity shares of Rs. 10/- each for cash at a premium of Rs. 30/- per equity share, aggregating to Rs. 8,98,00,000/- in accordance with the provisions of the Companies Act, 1956 and Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulation, 2009 to non-promoters. Accordingly, the in-principle approval of the Mumbai Stock Exchange (BSE) was obtained and the allotment of shares was done on the 12th March, 2010.

4. Cash credit facility from Union Bank of India (sanctioned amount Rs. 400 lacs) is secured primarily by way of hypothecation of book debts and moveable stock in the form of Work In Progress and collaterally by mortgage of Flat at Mumbai and Nagpur in the name of the Managing Director, Mr. Naresh Saboo jointly with his wife Mrs. Madhu Saboo and pledge of 2,50,000 shares of the company held by the promoter company M/ s Saboo Capital and Securities Pvt Ltd and also by personal guarantee of the promoter company M/s. Saboo Capital and Securities Pvt Ltd, Mr. Naresh S. Saboo, Managing Director, Naresh Jain, Director, and Madhu Saboo, wife of Managing Director.

5. Uncertified contract revenue of Rs. 44,36,838/- includes work executed by the company which has not yet been certified by the principal contractors. The management has determined the value of the uncertified revenue based on the cost incurred by the company in relation to the same.

6. Other advances includes Rs. 7,00,00,000/- (agreement value) advanced towards property at Pune for which the agreement for sale had been entered and registered in the name of the company. However the deed of conveyance has not been executed and hence not registered, due to Rs. 1,32,50,000/- out of the total consideration of Rs. 7,00,00,000/- being outstanding to be paid by the company to the vendors. The outstanding amount has been fully provided for in the accounts.

7. Since the Company recognises gratuity and leave salary expense on payment basis, no liability for the same has been ascertained and provided in the accounts. Hence, the company has not complied with the provisions of AS-15 "Accounting for Retirement Benefit".

8. During the Year, a sum of Rs. Nil/- (Previous year Rs. 37,790/-) being interest till the date the asset is put to use on borrowings attributable to qualifying assets have been capitalised.

9. In spite of the absence of database identifying parties as Small Scale Industrial Undertakings (SSIs), it is of the opinion of the management that there are no dues payable to SSIs. The auditors have accepted the representation of the management in this regards.

10. Under the Micro, Small and Medium Enterprises Development Act, 2006 certain disclosures are required to be made relating to Micro, Small and Medium Enterprises. The Company is in the process of compiling relevant information from its suppliers about their coverage under the said Act. Since the relevant information is not readily available, no disclosures have been made in the accounts. However, in the opinion of the management, the impact of interest, if any, that may be payable in accordance with the provision of this Act is not expected to be material.

11. The balances appearing under unsecured loans, sundry creditors, sundry debtors, loans and advances, and certain banks are subject to confirmation and reconciliation and consequential adjustment, if any, will be accounted for in the year of confirmation and/or reconciliation.

12. In the opinion of the Board, the Current Assets, Loans and Advances have value on realisation in the ordinary course of business, at least equal to the amount at which they are stated in the Balance Sheet.

13. The disputed demand in respect of Income Tax outstanding for the Assessment Year 2003-04 of Rs. 20,96,632/-, for which the Company had preferred an appeal against the department with the CIT (Appeals) has been dismissed by the CIT (Appeals) and accordingly fresh demand has been raised for Rs. 25,80,957/- The company has preferred a second appeal against the order of the CIT (Appeals) with the Income Tax Appellate Tribunal, Mumbai. The company has already paid 50% of the demand raised earlier under protest. Based on the prevalent decisions of the appellate authorities and the interpretations of the other relevant provisions, the company has been legally advised that the demand is likely to be either deleted or substantially reduced and accordingly no provision for the balance demand has been made.

14. The Company leases office under cancellable operating lease agreements that are renewable on a periodic basis at the option of both the lessor and the lessee. Rental payments under such leases are Rs. 5,15,960/- and Rs. 2,72,580/- during the year ended 31 st March, 2010 and 2009 respectively.

15. Related party disclosures as required by AS-18 are given below

(a) List of Related Parties

Key Managerial Personnel

Naresh Jain

Naresh Saboo

Relatives of Key Managerial Personnel

Santosh Saboo

Associated Concerns

Verbana Mercantile Pvt. Ltd.

Saboo Capital and Securities Pvt. Ltd.

Obident Exports Pvt. Ltd.

Diamant Infrastructure Developers Pvt Ltd

Diamant Realty Pvt Ltd

Diamant Securities Pvt Ltd

16. The management was of the opinion that there were no impairment indicators that existed as on the balance sheet date. Hence no provision for the impairment loss has been done.

17. The company has provided for deferred tax. The net deferred tax liability of Rs. 54,649/- as at the balance sheet date has been carried forward. The net deferred tax liability consists of the following components:

18. Previous years figures have been regrouped / re-classified in order to conform to current years figures.

19. Balance Sheet and General Business Profile (in terms of Part IV of Schedule VI to the Companies Act, 1956) is annexed herewith.