Notes to Accounts of Eldeco Housing & Industries Ltd.

Mar 31, 2025

(x) Provisions, Contingent Assets and Contingent
Liabilities

A provision is recognised when:

• the Company has a present obligation as a result of a past
event;

• it is probable that an outflow of resources embodying
economic benefits will be required to settle the
obligation; and

• a reliable estimate can be made of the amount of the
obligation.

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. Where there is a possible
obligation or a present obligation that the likelihood of outflow of
resources is remote, no provision or disclosure is made.

(xi) Earnings Per Share

Basic earnings per share are calculated by dividing the total Profit
for the year attributable to equity shareholders by the weighted
average number of equity shares outstanding during the year.

For the purpose of calculating diluted earnings per share, the total
Profit for the year attributable to equity shareholders and the
weighted average number of shares outstanding during the year
are adjusted for the effects of all dilutive potential equity share.

(xii) Leases

In accordance with IND AS 116, the Company recognises right of
use assets representing its right to use the underlying asset for
the lease term at the lease commencement date. The cost of right
of use asset measured at inception shall comprise of the amount
of the initial measurement of the lease liability adjusted for any
lease payment made at or before commencement date less any
lease incentive received plus any initial direct cost incurred and
an estimate of cost to be incurred by lessee in dismantling and
removing underlying asset or restoring the underlying asset or
site on which it is located. The right to use asset is subsequently
measured at cost less accumulated depreciation, accumulated
impairment losses, if any and adjusted for any remeasurement
of lease liability. The right to use assets is depreciated using
the straight line method from the commencement date over
the shorter of lease term or useful life of right of use asset. The
estimated useful lives of right of use assets are determined on the
same basis as those of property, plant and equipment. Right of use
assets are tested for impairment whenever there is any indication
that their carrying amounts may not be recoverable Impairment
loss, if any, is recognises in statement of profit and loss. The
Company measures the lease liability at the present value of the
lease payments that are not paid at the commencement date of
lease. The lease payments are discounted using the interest rate
implicit in the lease, if that rate can be readily determined; the
Company uses incremental borrowing rate. Lease arrangements
where the risk and rewards incident to ownership of an asset
substantially vest with the lessor are recognised as operating
lease. Lease rent under operating lease are charged to statement
of profit and loss on a straight line basis over the lease term except
where scheduled increase in rent compensate the lessor for
expected inflationary costs.

The lease liability is subsequently remeasured by increasing the
carrying amount to reflect interest on lease liability, reducing
the carrying amount to reflect the lease payments made and
remeasuring the carrying amount to reflect any reassessment or

lease modification or to reflect revised-in-substance fixed lease
payments, the Company recognises amount of remeasurement of
lease liability due to modification as an adjustment to right of use
assets and statement of profit and loss depending upon the nature
of modification. Where the carrying amount of right of use assets
is reduced to zero and there is further reduction in measurement
of lease liability, the Company recognises any remaining amount
of the remeasurement in statement of profit and loss.

(xiii) Income Tax

(i) Provision for current tax is made based on the tax payable
under the Income Tax Act, 1961. Current income tax relating
to items recognised outside profit and loss (either in other
comprehensive income or in equity).

(ii) Deferred tax is recognised on temporary differences
between the carrying amounts of assets and liabilities in the
financial statements and the corresponding tax bases used
in the computation of taxable profit.

Deferred tax liabilities and assets are measured at the tax
rates that are expected to apply in the period in which the
liability is settled or the asset realised, based on tax rates
(and tax laws) that have been enacted or substantively
enacted by the end of the reporting period. The carrying
amount of deferred tax liabilities and assets are reviewed at
the end of each reporting period.

(xiv) Fair Value Measurement

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

• In the principal market for the asset or liability; or

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

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

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

The Company uses valuation techniques that are appropriate in
the circumstances and for which sufficient date are available to
measure fair value, maximizing the use of relevant observable
inputs:

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

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

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

For assets and liabilities that are recognised in the
financial statements on a recurring basis, the Company
determines whether transfer have occurred between

levels in the hierarchy by re-assessing categorization
(based on the lowest level input that is significant to the
fair value measurement as a whole) at the end of each
reporting period.

For the purpose of fair value disclosure, the Company has
determined classes of assets and liabilities on the basis of
nature, characteristics and risks of the asset or liability and
the level of the fair value hierarchy as explained above.

(xv) Cash and Cash Equivalent

Cash and Cash equivalent in the balance sheet comprises cash at
bank and cash on hand, demand deposits and short term deposits
which are subject to an insignificant change in value.

The amendment to IND AS 7 requires entities to provide
disclosure of change in the liabilities arising from financing
activities, including both changes arising from cash flows and
non-cash changes (such as foreign exchange gain or loss).
The Company has provided information for both current and
comparative period in cash flow statement.

(xvi) Business Combinations

The acquisition method of accounting is used to account for all
business combinations, except common control transactions,
regardless of whether equity instruments or other assets are
acquired. The consideration transferred for the acquisition of the
transferor Companies comprises the:

• fair values of the assets transferred;

• liabilities incurred to the former owners of the acquired
business;

• equity interests issued by the Company; and

• fair value of any asset or liability resulting from a contingent
consideration arrangement.

Identifiable assets acquired, liabilities and contingent liabilities
assumed in a business combination are with limited exceptions,
measured initially at their fair values at the acquisition date.

Acquisition related costs are expensed as incurred.

The excess of the consideration transferred and acquisition-date
fair value of any previous equity interest in the acquired entity over
the fair value of the net identifiable assets acquired is recorded
as goodwill. If those amounts are less than the fair value of the
net identifiable assets of the business acquired, the difference is
recognised in other comprehensive income and accumulated in
equity as capital reserve provided there is clear evidence of the
underlying reasons for classifying the business combination as
a bargain purchase. In other cases, the bargain purchase gain is
recognised directly in equity as capital reserve.

Where settlement of any part of cash consideration is deferred,
the amounts payable in the future are discounted to their present
value as at the date of exchange. The discount rate used is the
entity''s incremental borrowing rate, being the rate at which
a similar borrowing could be obtained from an independent
financier under comparable terms and conditions.

Contingent consideration is classified either as equity or a financial
liability. Amounts classified as a financial liability are subsequently
re-measured to fair value with changes in fair value recognised in
profit or loss. There is no contingent consideration in respect of all
the years presented.

Business combinations involving entities that are controlled by
the Company are accounted for using the pooling of interests
method as follows:

• The assets and liabilities of the combining entities are
reflected at their carrying amounts.

• No adjustments are made to reflect fair values or recognise
any new assets or liabilities. Adjustments are only made to
harmonise accounting policies.

• The financial information in the financial statements in
respect of prior periods is restated as if the business
combination had occurred from the beginning of the
preceding period in the financial statements, irrespective
of the actual date of the combination. In case of Court
approved Scheme the business combination is recognised
from the appointed date following the accounting treatment
approved by the Court.

• The balance of the retained earnings appearing in the
financial statements of the transferor is aggregated with the
corresponding balance appearing in the financial statements
of the transferee.

• The identity of the reserves are preserved and the reserves
of the transferor become the reserves of the transferee.

• The difference, if any, between the amounts recorded as
share capital issued plus any additional consideration in the
form of cash or other assets and the amount of share capital
of the transferor is transferred to capital reserve and is
presented separately from other capital reserves.

(xvii) Significant Management Judgement in Applying
Accounting Policies and Estimation of Uncertainty
Significant management judgement

When preparing the financial statements, management
undertakes a number of judgements, estimates and assumptions
about the recognition and measurement of assets, liabilities,
income and expenses.

The following are significant management judgement in applying
the accounting policies of the Company that have the most
significant effect on the financial statements.

(a) Recognition of deferred tax assets

The extent to which deferred tax assets can be recognised is
based on an assessment of the probability of the Company''s
future taxable income against which the deferred tax assets can
be utilised.

(b) Estimation of uncertainty

(a) Recoverability of advances/receivables

At each balance sheet date, based on historical default rates
observed over expected life, the management assesses
the expected credit loss on outstanding receivables and
advances.

(b) Defined benefit obligation (DBO)

Management''s estimate of the DBO is based on a number
of critical underlying assumptions such as standard rates
of assumptions such as standard rates of inflation, medical
cost trends, mortality, discount rate and anticipation of
future salary increases. Variation in these assumptions may
significantly impact the DBO amount and the annual defined

benefit expenses

(c) Provisions

At each balance sheet date on the basis of management
judgement, changes in facts and legal aspects, the Company
assesses the requirement of provisions against the
outstanding warranties and guarantees. However, the actual
future outcome may be different from this judgement.

(d) Inventories

Inventory is stated at the lower of cost and net realisable
value (NRV).

NRV for completed inventory is assessed including but
not limited to market conditions and prices existing at the
reporting date and is determined by the Company based
on net amount that it expects to realise from the sale of
inventory in the ordinary course of business.

NRV in respect of inventories under construction is
assessed with reference to market prices (by referring to
expected or recent selling price) at the reporting date less
estimated costs to complete the construction and estimated
cost necessary to make the sale. The costs to complete the
construction are estimated by management.

(e) Fair value measurements

Management applies valuation techniques to determine
the fair value of financial instruments (where active market
quotes are not available) and non-financial assets. This
involves developing estimates and assumptions consistent
with how market participants would price the instrument/
assets. Management bases its assumptions on observable
date as far as possible but this may not always be available.
In that case Management uses the best relevant information
available. Estimated fair values may vary from the actual
prices that would be achieved in an arm''s length transaction
at the reporting date.

(f) Lease

The Company evaluates if an arrangement qualifies to be a
lease as per the requirements of IND AS 116. Identification
of a lease requires significant judgement. The Company uses
significant judgement in assessing the lease term (including
anticipated renewals) and the applicable discount rate.

The Company determines the lease term as the non¬
cancellable period of lease, together with both periods
covered by an option to extend the lease if the Company
is reasonably certain to exercise that option and periods
covered by an option to terminate the lease if the Company
is reasonably certain not to exercise that option. In exercising
whether the Company is reasonably certain to exercise an
option to extend a lease or to exercise an option to terminate
the lease, it considers all relevant facts and circumstances
that create an economic incentive for the Company to
exercise the option to extend the lease or to exercise the
option to terminate the lease. The Company revises lease
term, if there is change in non-cancellable period of lease.
The discount rate used is generally based on incremental
borrowing rate.

(g) Classification of assets and liabilities into current and
non-current

The Management classifies assets and liabilities into current
and non-current categories based on its operating cycle.

13.1 Pursuant to the Amalgamation of Eldeco City Limited, Halwasiya Agro Industries Limited and MAK Sales Private Limited with
the Company by the Order of the Hon''ble National Company Law Tribunal, Allahabad Bench at Allahabad & the Hon''ble High Court
of Punjab and Haryana at Chandigarh, the Authorised Share Capital was increased by 3,55,50,000, being Equity Shares increased by
1,80,50,000 and Preference Shares increased by 1,75,00,000 of '' 10 each.

13.2 Company in pursuant to the provisions of Section 61(1)(d) and other applicable provisions of the Companies Act, 2013 and Rules
made thereunder has sub-divided 1 Equity Share of the Company having face value of '' 10/- each into 5 Equity Shares having face
value of '' 2/- each. Further, pursuant to sub-division of Equity Shares of Company, the authorised share capital will be reclassified into ''
45,55,00,000/- divided into 14,02,50,000 equity shares of '' 2/- each. Further, the paid up capital will be reclassified into '' 1,96,66,000/-
consisting of 98,33,000 Equity Shares of '' 2/- each. The said sub-division was approved by shareholders through postal ballot
on 16.12.2021.

The aforesaid disclosure is based upon percentages computed separately for class of shares outstanding as at the balance sheet date.
As per records of the Company, including its register of shareholders/members and other declarations received from shareholders
regarding beneficial interest, the above shareholding represents both legal and beneficial ownerships of shares.

13.3 Terms/rights attached to paid up equity shares

The Company has only one class of equity shares having a par value of '' 2/- each (PY. '' 2/- each). Each holder of equity share is entitled
to one vote per share. 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.

13.4 On May 22, 2025, the Board of Directors recommended a final dividend of '' 9.00 per equity share of face value of '' 2.00 each
be paid to the shareholders for financial year 2024-25, which is subject to approval by the shareholders at the ensuing Annual General
Meeting. If approved, the dividend would result in a cash outflow of '' 884.97 Lacs.

Nature and purpose of each reserve within equity:

1. Capital Reserve

This reserve has been transferred to the Company in earlier years
and can be utilised in accordance with the provisions of the the
Companies Act, 2013.

2. Security Premium

Security premium is used to record the premium for issue of
shares and can be utilised in accordance with the provisions of the
Companies Act, 2013.

3. General Reserve

The reserve used to transfer profits from retained earnings
for appropriation purposes. The amount is to be utilised in
accordance with the provisions of the Companies Act, 2013.

4. Retained Earnings

These are the profits that Company has earned till date less
transfers to general reserve.

5. Other Comprehensive Income (OCI)

This includes remeasurement loss/gain on defined benefit plans
(net of taxes) that will not be reclassified to the statement of profit
and loss.

Nature of Security provided against Term Loan from
ICICI Bank for RTL I & RTL II:

• All the piece & parcel of land located at khasra no. 234 and
331 kha, admeasuring 0.2410 Hectare or 2,410 Sq. Meter
situated at village Muttakipur, Pargana, Tehsil and District-
Lucknow, Uttar Pradesh-226020 together with all buildings
and structures thereon and all plant and machinery attached
to the earth or permanently fastened to anything attached
to the earth, both present and future owned by Artistry
Construction Private Limited.

• All the piece & parcel of land located at khasra no. 239, 317,
361 and 194 total admeasuring 6,097.5 Sq. Meter situated
at village Muttakipur, Pargana, Tehsil and District- Lucknow,
Uttar Pradesh-226020 together with all buildings and
structures thereon and all plant and machinery attached
to the earth or permanently fastened to anything attached
to the earth, both present and future owned by Erudite
Constructions Private Limited.

• All the piece & parcel of land located at khasra no. 315
and 240 admeasuring 1.5040 Hectare or 15,040 Sq.
Meter situated at village Muttakipur, Pargana, Tehsil and
District- Lucknow, Uttar Pradesh-226020 together with
all buildings and structures thereon and all plant and
machinery attached to the earth or permanently fastened
to anything attached to the earth, both present and future
owned by Frozen Constructions Private Limited.

• All the piece & parcel of land located at khasra no. 313
admeasuring 1.1650 Hectare or 11,650 Sq. Meter
situated at village Muttakipur, Pargana, Tehsil and
District- Lucknow, Uttar Pradesh-226020 together with
all buildings and structures thereon and all plant and
machinery attached to the earth or permanently fastened
to anything attached to the earth, both present and future
owned by the Company.

• All the piece & parcel of land located at khasra no. 330
admeasuring 0.2740 Hectare or 2,740 Sq. Meter situated
at village Muttakipur, Pargana, Tehsil and District- Lucknow,
Uttar Pradesh-226020 together with all buildings and
structures thereon and all plant and machinery attached
to the earth or permanently fastened to anything attached
to the earth, both present and future owned by Utsav
Constructions Private Limited.

• All the piece & parcel of land located at khasra no. 329
admeasuring 0.1770 Hectare or 1,770 Sq. Meter situated

at village Muttakipur, Pargana, Tehsil and District- Lucknow,
Uttar Pradesh-226020 together with all buildings and
structures thereon and all plant and machinery attached to
the earth or permanently fastened to anything attached to
the earth, both present and future owned by Company.

• All the piece & parcel of land located at khasra no. 314
admeasuring 0.0230 Hectare or 230 Sq. Meter, khasra no.
316 admeasuring 0.0270 Hectare or 270 Sq. Meter and
khasra no. 319 admeasuring 0.1210 Hectare or 1210 Sq.
Meter situated at village Muttakipur, Pargana, Tehsil and
District- Lucknow, Uttar Pradesh-226020 together with all
buildings and structures thereon and all plant and machinery
attached to the earth or permanently fastened to anything
attached to the earth, both present and future owned by
Company.

• The Borrower''s/Property owner''s receivables/cash flows/
revenues (including booking amounts and/or security
deposits) arising out of or in connection with or relating to
the Project and all insurance proceeds both present and
future.

Further secured by Corporate Guarantee jointly and severally
of Artistry Construction Private Limited, Erudite Constructions
Private Limited, Frozen Constructions Private Limited, Utsav
Constructions Private Limited, the wholly owned subsidiaries of
the Company.

Purpose of Facility

RTL I shall be utilised toward reimbursement of project costs
incurred in the ongoing projects of the Borrower excluding the
land cost, TDR/FSI during the past 6 months from the date of
sanction of facility. Further RTL II shall be utilised towards
funding the balance cost of the residential project namely
"Eldeco Latitude 27" and transaction related expenses.

Interest Rate

The rate of interest for each drawal of the Facility will be stipulated
by ICICI Bank at the time of disbursement of each drawal, which
shall be sum of I- MCLR 1Y "Spread" per annum, subject to
minimum of I-MCLR-1Y plus applicable statutory levy, if any. As
on date the I-MCLR 1Y is 8.95% and "Spread" is 2.2%. ICICI Bank
shall reset the above interest rate, at the end of every 1 year from
the date of disbursement of the first drawal of the facility as a
sum of I-MCLR-1Y "Spread", prevailing on the reset date plus
applicable statutory levy, if any. Any change in Spread would be as
communicated by the Bank from time to time.

Description of Risk Exposures

Valuations are based on certain assumptions, which are dynamic
in nature and vary over time. As such Company is exposed to
various risks as follows:

A) Salary Increase: Actual salary increase will increase the Plan''s
liability. Increase in salary increase rate assumption in future
valuations will also increase the liability.

B) Investment Risk: If Plan is funded then assets/liabilities
mismatch & actual investment return on assets lower than the
discount rate assumed at the last valuation date can impact the
liability.

C) Discount Rate: Reduction in discount rate in subsequent
valuations can increase the plan''s liability.

D) Mortality & Disability: Actual deaths & disability cases
proving lower or higher than assumed in the valuation can impact
the liabilities.

E) Withdrawals: Actual withdrawals proving higher or lower
than assumed withdrawals and change of withdrawal rates at
subsequent valuations can impact Plan''s liability.

Leave Encashment (Unfunded)

The valuation of Leave Encashment has been done on the basis
of actuarial valuation on projected unit (PUC) method and
is provided in the financial statement and does not require
disclosure as mentioned in Para 158 of IND AS 19. Provision
of leave encashment as per actuarial is less than the liability
provided in books of accounts, hence, the management has made
the provision for leave encashment on accrual basis.

Defined Contribution Plan

Provident Fund: The Company contributes Provident Fund
(Employer as well as Employee Share) to Provident Fund
Commissioner (U.P) and Employers Contribution to such fund
is charged to Statement of Profit and Loss. The Provident fund
contribution charged to Statement of Profit and Loss for the
year ended 31.03.2025 amounted to '' 15.77 Lacs(Previous Year
'' 12.96 Lacs).

42. FINANCIAL RISK MANAGEMENT

The Company activities exposes it to variety of financial risk i.e. Credit Risk, Liquidity Risk, Capital Risk, Interest Rate Risk, etc. These
risks are managed by senior management of the Company and is supervised by Board of Directors of the Company to minimise potential
adverse effects on the financial performance of the Company.

(i) Credit Risk:

Credit risk from cash and cash equivalents and bank deposits is considered immaterial in view of the creditworthiness of the banks the
Company works with. Credit risk is the risk i.e a customer or the counter party fails to pay to the Company causing financial loss. The
credit risk primarily arises from outstanding receivables from customer. The Company has specific policies for managing customer credit
risk on an ongoing basis. These policies factor in the customer financial position, past experience and other customer specific factor.

Financial assets are written off when there is no reasonable expectation of recovery such as a debtor failing to engage in a repayment plan
with the Company. The Company makes provision for doubtful debt or write off when a debtor fails to make contractual payments. When
loans or receivables have either been provided for or written off, the Company continues to engage in enforcement activity to attempt
to recover the receivable due. When recoveries are made, these are recognised in the Statement of Profit and Loss. The Company has
low credit risk in respect to cash and cash equivalent, other bank balances, other financial assets, trade receivables and security deposits
paid.

(ii) LiquidIty Risk:

Liquidity Risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that
are settled by delivering cash or another financial asset. The Company approach to managing liquidity is to ensure as far as possible, that
it will have sufficient liquidity to meet its liabilities when they are due. Management monitors rolling forecasts of the liquidity position
and cash and cash equivalent on the basis of expected cash flows. The Company takes into account the liquidity of the market in which
the entity operates.

49. OTHER STATUTORY INFORMATION

(i) The Company do not have any Benami property, where
any proceeding has been initiated or pending against the
Company for holding any Benami property.

(ii) The Company has not availed working capital limits in excess
of Rupees five crores in aggregate at any point of time during
the year from banks or financial institution on the basis of
security of current assets.

(iii) The Company do not have any transactions with Companies
struck off.

(iv) The Company do not have any charges or satisfaction
which is yet to be registered with ROC beyond the
statutory period.

(v) The Company have not traded or invested in Crypto
currency or Virtual Currency during the financial year.

(vi) The Company have 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.

(vii) The Company have 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.

(viii) The Company have not, any such transaction which is not
recorded in the books of accounts that has been surrendered
or disclosed as income during the year in the tax assessments
under the Income Tax Act, 1961 (such as search or survey or
any other relevant provisions of the Income Tax Act, 1961).

(ix) The Company has not been declared a wilful defaulter by
any bank or financial institution or government authorities
during the year.

(x) During the year, there is no scheme or arrangement
approved by the competent authority in terms of Section
230 to 237 of the Companies Act, 2013.

50. AUDIT TRAIL

The Company has used an accounting softwares for maintaining
its books of accounts for the financial year ended 31.03.2025,
which has a feature of recording audit trail (Edit log) facility and
the same has been operating for all relevant transactions recorded
in the software. Although the accounting software has inherent
limitations, there were no instances of the audit trail feature being
tampered. Additionally, the audit trail has been preserved by the
company as per the statutory requirements for record.

51. Previous years figures have been regrouped, rearranged
or reclassified, wherever necessary to confirm the current
year''s classification.

As per our audit report of even date attached

For and on behalf of the Board of Directors

For Doogar & Associates

Chartered Accountants

Firm Registration Number: 000561N

CA Udit Bansal Pankaj Bajaj Shrikant Jajodia

Partner (Chairman cum Managing Director) (Director)

Membership Number: 401642 DIN: 00024735 DIN: 00602511

Kapil Saluja Chandni Vij

Place: New Delhi (Chief Financial Officer) (Company Secretary)

Date: May 22, 2025 M.No.: 436292 M.No.: A46897

---

Mar 31, 2024

(x) Provisions, Contingent Assets and Contingent

Liabilities

A provision is recognized when:

• the Company has a present obligation as a result of a past event;

• it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation; and

• a reliable estimate can be made of the amount of the obligation.

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. Where there is a possible obligation or a present obligation that the likelihood of outflow of resources is remote, no provision or disclosure is made.

(xi) Earnings Per Share

Basic earnings per share are calculated by dividing the total Profit for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year.

For the purpose of calculating diluted earnings per share, the total Profit for the year attributable to equity shareholders and the weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity share.

(xii) Leases

In accordance with IND AS 116, the Company recognizes right of use assets representing its right to use the underlying asset for the lease term at the lease commencement date. The cost of right of use asset measured at inception shall comprise of the amount of the initial measurement of the lease liability adjusted for any lease payment made at or before commencement date less any lease incentive received plus any initial direct cost incurred and an estimate of cost to be incurred by lessee in dismantling and removing underlying asset or restoring the underlying asset or site on which it is located. The right of use asset is subsequently measured at cost less accumulated depreciation, accumulated impairment losses, if any and adjusted for any remeasurement of lease liability. The right of use assets is depreciated using the straight line method from the commencement date over the shorter of lease term or useful life of right of use asset. The estimated useful lives of right of use assets are determined on the same basis as those of property, plant and equipment. Right of use assets are tested for impairment whenever there is any indication that their carrying amounts may not be recoverable. Impairment loss, if any, is recognized in statement of profit and loss. The Company measures the lease liability at the present value of the lease payments that are not paid at the commencement date of lease. The lease payments are discounted using the interest rate implicit in the lease, if that rate can be readily determined; the Company uses incremental borrowing rate. Lease arrangements where the risk and rewards incident to ownership of an asset substantially vest with the lessor are recognised as operating lease. Lease rent under operating lease are charged to statement of profit and loss on a straight line basis over the lease term except where scheduled increase in rent compensate the lessor for expected inflationary costs.

The lease liability is subsequently remeasured by increasing the carrying amount to reflect interest on lease liability, reducing the carrying amount to reflect the lease payments made and remeasuring the carrying amount to reflect any reassessment or lease modification or to reflect revised-insubstance fixed lease payments, the Company recognizes amount of remeasurement of lease liability due to modification as an adjustment to right of use assets and statement of profit and loss depending upon the nature of modification. Where the carrying amount of right of use assets is reduced

to zero and there is further reduction in measurement of lease liability, the Company recognizes any remaining amount of the remeasurement in statement of profit and loss.

(xiii) Income Taxes

(i) Provision for current tax is made based on the tax payable under the Income Tax Act, 1961. Current income tax relating to items recognised outside profit and loss is recognised outside profit and loss (either in other comprehensive income or in equity).

(ii) Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit.

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The carrying amount of Deferred tax liabilities and assets are reviewed at the end of each reporting period.

(xiv) Fair Value Measurement

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

• In the principal market for the asset or liability; or

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

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

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

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient date are available to measure fair value, maximizing the use of relevant observable inputs:

• Level 1: Quoted (unadjusted) market prices in active

markets for identical assets or liabilities.

• Level 2: Valuation techniques for which the lowest

level input that is significant to the fair value measurement is directly or indirectly observable.

• Level 3: Valuation techniques for which the lowest

level input that is significant to the fair value measurement is unobservable.

For assets and liabilities that are recognized in the financial statements on a recurring basis, the Company determines whether transfer have occurred between levels in the hierarchy by re-assessing categorization (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.

For the purpose of fair value disclosure, the Company has determined classes of assets and liabilities on the basis of nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.

(xv) Cash and Cash Equivalent

Cash and Cash equivalent in the balance sheet comprises cash at bank and cash on hand, demand deposits and short term deposits which are subject to an insignificant change in value.

The amendment to IND AS-7 requires entities to provide disclosure of change in the liabilities arising from financing activities, including both changes arising from cash flows and non-cash changes (such as foreign exchange gain or loss). The Company has provided information for both current and comparative period in cash flow statement.

(xvi) Business Combinations

The acquisition method of accounting is used to account for all business combinations, except common control transactions, regardless of whether equity instruments or other assets are acquired. The consideration transferred for the acquisition of the transferor Companies comprises the:

• fair values of the assets transferred;

• liabilities incurred to the former owners of the acquired business;

• equity interests issued by the Company; and

• fair value of any asset or liability resulting from a contingent consideration arrangement.

Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are with limited exceptions, measured initially at their fair values at the acquisition date.

Acquisition-related costs are expensed as incurred.

The excess of the consideration transferred and acquisition-date fair value of any previous equity interest in the acquired entity over the fair value of the net identifiable assets acquired is recorded as goodwill. If those amounts are less than the fair value of the net identifiable assets of the business acquired, the difference is recognised in other comprehensive income and accumulated in equity as capital reserve provided there is clear evidence of the underlying reasons for classifying the business combination as a bargain purchase. In other cases, the bargain purchase gain is recognised directly in equity as capital reserve.

Where settlement of any part of cash consideration is deferred, the amounts payable in the future are discounted to their present value as at the date of exchange. The discount rate used is the entity''s incremental borrowing rate, being the rate at which a similar borrowing could be obtained from an independent financier under comparable terms and conditions.

Contingent consideration is classified either as equity or a financial liability. Amounts classified as a financial liability are subsequently re-measured to fair value with changes in fair value recognised in profit or loss. There is no contingent consideration in respect of all the years presented.

Business combinations involving entities that are controlled by the Company are accounted for using the pooling of interests method as follows:

• The assets and liabilities of the combining entities are reflected at their carrying amounts.

• No adjustments are made to reflect fair values or recognise any new assets or liabilities. Adjustments are only made to harmonise accounting policies.

• The financial information in the financial statements in respect of prior periods is restated as if the business combination had occurred from the beginning of the preceding period in the financial statements, irrespective of the actual date of the combination. In case of Court approved Scheme the business combination is recognised from the appointed date following the accounting treatment approved by the Court.

• The balance of the retained earnings appearing in the financial statements of the transferor is aggregated with the corresponding balance appearing in the financial statements of the transferee.

• The identity of the reserves are preserved and the reserves of the transferor become the reserves of the transferee.

• The difference, if any, between the amounts recorded as share capital issued plus any additional consideration in the form of cash or other assets and the amount of share capital of the transferor is transferred to capital reserve and is presented separately from other capital reserves.

(xvii) Significant Management Judgement in Applying Accounting Policies and Estimation of Uncertainty

Significant management judgement

When preparing the financial statements, management undertakes a number of judgements, estimates and assumptions about the recognition and measurement of assets, liabilities, income and expenses.

The following are significant management judgement in applying the accounting policies of the Company that have the most significant effect on the financial statements.

(a) Recognition of deferred tax assets

The extent to which deferred tax assets can be recognized is based on an assessment of the probability of the Company''s future taxable income against which the deferred tax assets can be utilised.

(b) Estimation of uncertainty

(a) Recoverability of advances/receivables

At each balance sheet date, based on historical default rates observed over expected life, the management assesses the expected credit loss on outstanding receivables and advances.

(b) Defined benefit obligation (DBO)

Management''s estimate of the DBO is based on a number of critical underlying assumptions such as standard rates of assumptions such as standard rates of inflation, medical cost trends, mortality, discount rate and anticipation of future salary increases. Variation in these assumptions may significantly impact the DBO amount and the annual defined benefit expenses.

(c) Provisions

At each balance sheet date on the basis of management judgement, changes in facts and legal aspects, the Company assesses the requirement of provisions against the outstanding warranties and guarantees. However the actual future outcome may be different from this judgement.

(d) Inventories

Inventory is stated at the lower of cost and net realisable value (NRV).

NRV for completed inventory is assessed including but not limited to market conditions and prices existing at the reporting date and is determined by the Company based on net amount that it expects to realise from the sale of inventory in the ordinary course of business.

NRV in respect of inventories under construction is assessed with reference to market prices (by referring to expected or recent selling price) at the reporting date less estimated costs to complete the construction and estimated cost necessary to make the sale. The

costs to complete the construction are estimated by management.

(e) Fair value measurements

Management applies valuation techniques to determine the fair value of financial instruments (where active market quotes are not available) and non-financial assets. This involves developing estimates and assumptions consistent with how market participants would price the instrument/assets. Management bases its assumptions on observable date as far as possible but this may not always be available. In that case Management uses the best relevant information available. Estimated fair values may vary from the actual prices that would be achieved in an arm''s length transaction at the reporting date.

(f) Lease

The Company evaluates if an arrangement qualifies to be a lease as per the requirements of IND AS 116. Identification of a lease requires significant judgement. The Company uses significant judgement in assessing the lease term (including anticipated renewals) and the applicable discount rate.

The Company determines the lease term as the non-cancellable period of lease, together with both periods covered by an option to extend the lease if the Company is reasonably certain to exercise that option and periods covered by an option to terminate the lease if the Company is reasonably certain not to exercise that option. In exercising whether the Company is reasonably certain to exercise an option to extend a lease or to exercise an option to terminate the lease, it considers all relevant facts and circumstances that create an economic incentive for the Company to exercise the option to extend the lease or to exercise the option to terminate the lease. The Company revises lease term, if there is change in non-cancellable period of lease. The discount rate used is generally based on incremental borrowing rate.

(g) Classification of assets and liabilities into current and non-current

The Management classifies assets and liabilities into current and non-current categories based on its operating cycle.

Nature and purpose of each reserve within equity:

1. Capital Reserve

This reserve has been transferred to the Company in earlier years and can be utilized in accordance with the provisions of the Companies Act, 2013.

2. Security Premium

Security premium is used to record the premium for issue of shares and can be utilized in accordance with the provisions of the Companies Act, 2013.

3. General Reserve

The reserve used to transfer profits from retained earnings for appropriation purposes. The amount is to be utilized in accordance with the provisions of the Companies Act, 2013.

4. Retained Earnings

These are the profits that Company has earned till date less transfers to general reserve.

5. Other Comprehensive Income (OCI)

This includes remeasurement loss/gain on defined benefit plans (net of taxes) that will not be reclassified to the statement of profit and loss.

Nature of Security provided against Term Loan from ICICI Bank:

• All the piece & parcel of land located at khasra no. 234 and 331 kha, admeasuring 0.2410 Hectare or 2,410 Sq. Meter situated at village Muttakipur, Pargana, Tehsil and District-Lucknow, Uttar Pradesh-226020 together with all buildings and structures thereon and all plant and machinery attached to the earth or permanently fastened to anything attached to the earth, both present and future owned by Artistry Construction Private Limited.

• All the piece & parcel of land located at khasra no. 239, 317, 361 and 194 total admeasuring 6,097.50 Sq. Meter situated at village Muttakipur, Pargana, Tehsil and District-Lucknow, Uttar Pradesh-226020 together with all buildings and structures thereon and all plant and machinery attached to the earth or permanently fastened to anything attached to the earth, both present and future owned by Erudite Constructions Private Limited.

• All the piece & parcel of land located at khasra no. 315 and 240 admeasuring 1.5040 Hectare or 15,040 Sq. Meter situated at village Muttakipur, Pargana, Tehsil and District-Lucknow, Uttar Pradesh-226020 together with all buildings and structures thereon and all plant and machinery attached to the earth or permanently fastened to anything attached to the earth, both present and future owned by Frozen Constructions Private Limited.

• All the piece & parcel of land located at khasra no. 313 admeasuring 1.1650 Hectare or 11,650 Sq. Meter situated at village Muttakipur, Pargana, Tehsil and District-Lucknow, Uttar Pradesh - 226020 together with all buildings and structures thereon and all plant and machinery attached to the earth or permanently fastened to anything attached to the earth, both present and future owned by Company.

• All the piece & parcel of land located at khasra no. 330 admeasuring 0.2740 Hectare or 2,740 Sq. Meter situated at village Muttakipur, Pargana, Tehsil and District-Lucknow, Uttar Pradesh-226020 together with all buildings and structures thereon and all plant and machinery attached to the earth or permanently fastened to anything attached to the earth, both present and future owned by Utsav Constructions Private Limited.

• All the piece & parcel of land located at khasra no. 329 admeasuring 0.1770 Hectare or 1,770 Sq. Meter situated at village Muttakipur, Pargana, Tehsil and District-Lucknow, Uttar Pradesh-226020 together with all buildings and structures thereon and all plant and machinery attached to the earth or permanently fastened to anything attached to the earth, both present and future owned by Company.

• All the piece & parcel of land located at khasra no. 314 admeasuring 0.0230 Hectare or 230 Sq. Meter, khasra no. 316 admeasuring 0.0270 Hectare or 270 Sq. Meter and khasra no. 319 admeasuring 0.1210 Hectare or 1,210 Sq. Meter situated at village Muttakipur, Pargana, Tehsil and District-Lucknow, Uttar Pradesh - 226020 together with all buildings and structures thereon and all plant and machinery attached to the earth or permanently fastened to anything attached to the earth, both present and future owned by Company.

• The Borrower''s/Property owner''s receivables/cash flows/revenues (including booking amounts and/or security deposits) arising out of or in connection with or relating to the Project and all insurance proceeds both present and future.

Further secured by Corporate Guarantee jointly and severally of Artistry Construction Private Limited, Erudite Constructions Private Limited, Frozen Constructions Private Limited, Utsav Constructions Private Limited, the wholly owned subsidiaries of the Company.

Interest Rate:

The rate of interest for each drawal of the Facility will be stipulated by ICICI Bank at the time of disbursement of each drawal, which shall be sum of I-MCLR 1Y "Spread" per annum, subject to minimum of I-MCLR-1Y plus applicable statutory levy, if any. As on date the I-MCLR 1Y is 8.95% and "Spread" is 2.2%. ICICI Bank shall reset the above interest rate, at the end of every 1 year from the date of disbursement of the first drawal of the facility as a sum of I-MCLR-1Y "Spread" prevailing on the reset date plus applicable statutory levy, if any. Any change in Spread would be as communicated by the Bank from time to time.

Description of Risk Exposures

Valuations are based on certain assumptions, which are

dynamic in nature and vary over time. As such Company is

exposed to various risks as follows:

A) Salary Increase: Actual salary increase will increase the Plan''s liability. Increase in salary increase rate assumption in future valuations will also increase the liability.

B) Investment Risk: If Plan is funded then assets liabilities mismatch & actual investment return on assets lower than the discount rate assumed at the last valuation date can impact the liability.

C) Discount Rate: Reduction in discount rate in subsequent valuations can increase the plan''s liability.

D) Mortality & disability: Actual deaths & disability cases proving lower or higher than assumed in the valuation can impact the liabilities.

E) Withdrawals: Actual withdrawals proving higher or lower than assumed withdrawals and change of withdrawal rates at subsequent valuations can impact Plan''s liability.

Leave encashment (Unfunded)

The valuation of Leave Encashment has been done on the basis of acturial valuation on projected unit (PUC) method and is provided in the financial statement and does not require disclosure as mentioned in Para 158 of IND AS 19. Provision of leave encashment as per actuarial is less than the liability provided in books of accounts, hence the management has made the provision for leave encashment on accrual basis.

Defined Contribution Plan

Provident Fund: The Company contributes Provident Fund (Employer as well as Employee Share) to Provident Fund Commissioner (U.P) and Employers Contribution to such fund is charged to Statement of Profit and Loss. The Provident fund contribution charged to Statement of Profit and Loss for the year ended 31.03.2024 amounted to '' 12.96 Lacs (Previous Year '' 12.46 Lacs).

42. FINANCIAL RISK MANAGEMENT

The Company activities exposes it to variety of financial risk i.e. Credit Risk, Liquidity Risk, Capital Risk, Interest Rate Risk, etc. These risks are managed by senior management of the Company and is supervised by Board of Directors of the Company to minimise potential adverse effects on the financial performance of the Company.

(i) Credit Risk:

Credit risk from cash and cash equivalents and bank deposits is considered immaterial in view of the creditworthiness of the banks the Company works with. Credit risk is the risk i.e a customer or the counter party fails to pay to the Company causing financial loss. The credit risk primarily arises from outstanding receivables from customer. The Company has

specific policies for managing customer credit risk on an ongoing basis. These policies factor in the customer financial position, past experience and other customer specific factor.

Financial assets are written off when there is no reasonable expectation of recovery such as a debtor failing to engage in a repayment plan with the Company. The Company makes provision for doubtful debt or write off when a debtor fails to make contractual payments. When loans or receivables have either been provided for or written off, the Company continues to engage in enforcement activity to attempt to recover the receivable due. When recoveries are made, these are recognised in the Statement of Profit and Loss. The Company has low credit risk in respect to cash and cash equivalent, other bank balances, other financial assets, trade receivables and security deposits paid.

(ii) Liquidity Risk:

Liquidity Risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company approach to managing liquidity is to ensure as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due. Management monitors rolling forecasts of the liquidity position and cash and cash equivalent on the basis of expected cash flows. The Company takes into account the liquidity of the market in which the entity operates.

(iii) Capital Risk Management:

The Company''s capital risk management objective is to ensure that at all times it remains a going concern and safeguards the interest of the shareholders and other stakeholders. The Company monitors capital on the basis of carrying amount of equity plus its subordinated loan, less cash and other cash equivalents as presented on the face of the statement of financial position and cash flow hedges recognised in other comprehensive income.

The Company manages its capital structure and makes adjustments to it in the light of changes in economic conditions and the risk characteristics of the underlying assets. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to the shareholders, return capital to shareholders or issue new shares. The amount managed as capital by the Company are summarised as follows:

(v) Market Risk:

The Company is engaged into the business of real estate properties for residential and commercial purpose. The Company sales and collection has been increased. The Company has assessed the carrying amounts of Receivables, Inventories, Investments and other assets/liabilities. The Company will continue to monitor developments to identify significant uncertainties in future periods, if any. The Company has low market risk.

(vi) Foreign Currency Risk:

The Company do not deal in foreign currency transactions. The Company do not have any foreign currency risk.

49. OTHER STATUTORY INFORMATION

(i) The Company do not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

(ii) The Company has not availed working capital limits in excess of Rupees five crore in aggregate at any point of time during the year from banks or financial institution on the basis of security of current assets.

(iii) The Company do not have any transactions with Companies struck off.

(iv) The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period,

(v) The Company have not traded or invested in Crypto currency or Virtual Currency during the financial year.

(vi) The Company have 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.

(vii) The Company have 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.

(viii) The Company have not, any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

(ix) The Company has not been declared a wilful defaulter by any bank or financial institution or government authorities during the year.

(x) During the year, there is no scheme or arrangement approved by the competent authority in terms of Section 230 to 237 of the Companies Act, 2013.

50. AUDIT TRAIL

The Company has used an accounting software for maintaining its books of accounts for the financial year ended 31.03.2024, which has a feature of recording audit trail (Edit log) facility and the same has been operating for all relevant transactions recorded in the software. Although the accounting software has inherent limitations, there were no instances of the audit trail feature being tampered.

51 . Previous years figures have been regrouped, rearranged or reclassified, wherever necessary to confirm the current year''s classification.

As per our report of even date attached

For Doogar & Associates For and on behalf of the Board of Directors

Chartered Accountants

Firm Registration Number: 000561N

CA Udit Bansal Pankaj Bajaj Shrikant Jajodia

Partner (Chairman cum Managing Director) (Director)

Membership number: 401642 DIN: 00024735 DIN: 00602511

Kapil Saluja Chandni Vij

Place: New Delhi (Chief Financial Officer) (Company Secretary)

Date: 16^th May, 2024 M.No.: 436292 M.No.: A46897

---

Mar 31, 2023

1. Pursuant to the Amalgamation of Eldeco City Limited, Halwasiya Agro Industries Limited and MAK Sales Private Limited with the Company by the Order of Hon''ble National Company Law Tribunal, Allahabad Bench at Allahabad & Hon''ble High Court of Punjab and Haryana at Chandigarh, the Authorised Share Capital was increased by 3,55,50,000, being Equity Shares increased by 1,80,50,000 and Preference Shares increased by 1,75,00,000 of ? 10 each.

2. Company in pursuant to the provisions of Section 61(1)(d) and other applicable provisions of the Companies Act, 2013 and Rules made thereunder has sub-divided 1 Equity Share of the Company having face value of ? 10/- each into 5 Equity Shares having face value of ? 2/- each. Further pursuant to sub division of Equity Shares of Company, the authorised share capital will be reclassified into ? 45,55,00,000/-divided into 14,02,50,000 equity shares of ? 2/- each. Further, the paid up capital will be reclassified into ? 1,96,66,000/- consisting of 98,33,000 Equity Shares of ? 2/- each. The said sub division was approved by shareholders through postal ballot on 16.12.2021.

The aforesaid disclosure is based upon percentages computed separately for class of shares outstanding, as at the balance sheet date. As per records of the Company, including its register of shareholders/members and other declarations received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownerships of shares.

3. Terms/rights attached to paid up equity shares

The Company has only one class of equity shares having a par value of ? 2/- each (P.Y. ? 2/- each). Each holder of equity share is entitled to one vote per share. 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.

4. On 15^th May, 2023, the Board of Directors recommended a final dividend of ? 8.00 per equity share of face value of ? 2.00 each be paid to the shareholders for financial year 2022-23, which is subject to approval by the shareholders at the ensuing Annual General Meeting. If approved, the dividend would result in a cash outflow of ? 786.64 Lacs.

Nature of Security of Working Capital from Bank:

(i) In overdraft account secured against lien on bank Fixed Deposits and personal guarantee of Directors.

*lndudes overdraft facility of ft 46.07 Lacs from City Cooperative Bank Limited, against fixed deposit of ft 106.29 Locs. The said Bank has discontinued its operations, however the Company has applied for repayment of fixed deposit after adjustment of the balance outstanding in the overdraft account. A writ petition is also pending in respect of the same in Honble Allahabad High Court.

Note: While disclosing the aggregate amount of transaction prices yet to be recognised as revenue towards unsatisfied (or partially satisfied) performance obligations, the Company has applied the practical expedient in IND AS 115. The aggregate value of transaction price allocated to unsatisfied (or partially satisfied) performance obligations is ? 17,795.89 Lacs (Previous Year ? 15,747.15 Lacs) which is expected to be recognised as revenue in the subsequent years, however revenue to be recognised in next one year is not ascertainable due to nature of industry in which Company is operating.

37. Balances of trade receivables, trade payable, loan/advances given and other financial and non financial assets and liabilities are subject to reconciliation and confirmation from respective parties. The balance of said trade payable, loan/advances given and other financial and non financial assets and liabilities are taken as shown by the books of accounts. The ultimate outcome of such reconciliation and confirmation cannot presently be determined, therefore no provision for any liability that may result out of such reconciliation and confirmation has been made in the financial statement, the financial impact of which is unascertainable due to the reasons as above stated.

Description of Risk Exposures

Valuations are based on certain assumptions, which are dynamic in nature and vary over time. As such Company is exposed to various risks as follows -

A) Salary Increase - Actual salary increase will increase the Plan''s liability. Increase in salary increase rate assumption in future valuations will also increase the liability.

B) Investment Risk - If Plan is funded then assets liabilities mismatch & actual investment return on assets lower than the discount rate assumed at the last valuation date can impact the liability.

C) Discount Rate - Reduction in discount rate in subsequent valuations can increase the plan''s liability.

D) Mortality & disability - Actual deaths & disability cases proving lower or higher than assumed in the valuation can impact the liabilities.

E) Withdrawals - Actual withdrawals proving higher or lower than assumed withdrawals and change of withdrawal rates at subsequent valuations can impact Plan''s liability.

Leave encashment (Unfunded)

The valuation of Leave Encashment has been done on the basis of acturial valuation on projected unit (PUC) method and is provided in the financial statement and does not require disclosure as mentioned in Para 158 of IND AS 19. Provision of leave encashment as per actuarial is less than the liability provided in books of accounts, hence the management has made the provision for leave encashment on accrual basis.

Defined Contribution Plan

Provident Fund - The Company contributes Provident Fund (Employer as well as Employee Share) to Provident Fund Commissioner (U.P) and Employers Contribution to such fund is charged to Statement of Profit and Loss. The Provident fund contribution charged to Statement of Profit and Loss for the year ended 31.03.2023 amounted to ? 12.46 Lacs (previous year ? 19.26 Lacs).

(v) Market Risk: The Company is engaged into the business of real estate properties for residential and commercial purpose. The Company sales and collection has been increased. The Company has assessed the carrying amounts of Receivables, Inventories, Investments and other assets/liabilities. The Company will continue to monitor developments to identify significant uncertainties in future periods, if any. The Company has low market risk.

(vi) Foreign Currency Risk: The Company do not deal in foreign currency transactions. The Company do not have any foreign currency risk.

42. LEASES

The principal portion of the lease payments and interest have been disclosed under cash flow from financing activities. The weighted average incremental borrowing rate of 8% has been applied to lease liability recognised in balance sheet at the date of initial application. On application of IND AS 116, the nature of expense has changed from lease rent in previous periods to depreciation cost for right to use asset and finance cost for interest accured on lease liability.

45. RECENT ACCOUNTING PRONOUNCEMENTS

Ministry of Corporate Affairs (“MCA”) notifies new standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. On 31^st March, 2023, MCA amended the Companies (Indian Accounting Standards) Amendment Rules, 2023, as below:

IND AS 1 - Presentation of Financial Statements - This amendment requires the entities to disclose their material accounting policies rather than their significant accounting policies. The effective date for adoption of this amendment is annual periods beginning on or after 1^st April, 2023. The Company does not expect any significant impact of the amendment on its financial statements.

IND AS 8 - Accounting Policies, Changes in Accounting Estimates and Errors - This amendment has introduced a definition of ‘accounting estimates'' and included amendments to IND AS 8 to help entities distinguish changes in accounting policies from changes in accounting estimates. The effective date for adoption of this amendment is annual periods beginning on or after 1^st April, 2023. The Company does not expect any significant impact of the amendment on its financial statements.

IND AS 12 - Income Taxes - This amendment has narrowed the scope of the initial recognition exemption so that it does not apply to transactions that give rise to equal and offsetting temporary differences. The effective date for adoption of this amendment is annual periods beginning on or after 1^st April, 2023. The Company does not expect any significant impact of the amendment on its financial statements.

47. OTHER STATUTORY INFORMATION

(i) The Company do not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

(ii) The Company has not availed working capital limits in excess of Rupees Five Crores in aggregate at any point of time during the year from banks or financial institution on the basis of security of current assets.

(iii) The Company do not have any transactions with Companies struck off.

(iv) The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

(v) The Company have not traded or invested in Crypto currency or Virtual Currency during the financial year.

(vi) The Company have 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.

(vii) The Company have 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.

(viii) The Company does not have any such transaction which is not recorded in the books of account that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.

48. Previous years figures have been regrouped, rearranged or reclassified, wherever necessary to confirm the current year''s classification.

---

Mar 31, 2018

1. Corporate Information

Eldeco Housing & Industries Limited (“The Company”) is a listed entity incorporated in India. Registered address of the Company is Eldeco Corporate Chamber-1, 2nd Floor, Vibhuti Khand (Opp. Mandi Parishad), Gomti Nagar, Lucknow 226010. The company is engaged into the business of developing real estate properties for residential, commercial and retail purposes.

Footnotes to reconciliation of Equity and Total Comprehensive Income for the year.

1 Property, Plant & Equipments (PPE): The Company availed the exemption available under IND AS 101 to continue the carrying value for all its Property, Plant & Equipment and intangibles as recognised in the financial statements as at the date of transition to Ind AS, measured as per the IGAAP and use that as its deemed cost as at the date of transition (01.04.2016).

2 Defined Benefit Plan: The Acturial gain/losses, the effect of the asset ceiling, excluding amounts included in net interest on the net defined benefit liability and the return on plan assets excluding amounts included in the net interest on the net defined benefit liability are recognised in balance sheet through other comprehensive income. Thus employee benefit expenses are increased by Rs. 0.85 Lacs and recognised in other comprehensive income gross of tax for the year ended March 31, 2017

3 Other Comprehensive Income: Under previous GAAP, the Company has not presented Other Comprehensive Income (OCI) seprately. Hence, the statement of profit and loss under previous GAAP has been reconciled with statement of profit and loss and other comprehensive income as per Ind AS.

Actuarial gain of Rs 0.85 Lacs on defined benefit plans for the employees and Rs 0.29 Lacs deferred tax expense on the same as per Ind AS has been reclassified to the Other Comprehensive Income from Statement of Profit and Loss.

4 Deferred Tax: Indian GAAP requires deferred tax accounting using the income statement approach, which focuses on differences between taxable profits and accounting profits for the period. Ind AS 12 requires entities to account for deferred taxes using the balance sheet apporach, which focuses on temporary differences between the carrying amount of an asset or liability in the balance sheet and its tax base. The application on Ind AS 12 approach has resulted in recognition of deferred tax on new temporary differences which was not required under Indian GAAP. This has resulted deferred tax asset by Rs 0.55 lacs.

5 Fair Value of Equity Instruments: Under the previous GAAP, Investments in equity instruments were classified as long term investments based on the intended holding period and realisability. Long Term Investments were carried at cost less provision for other then temporary decline in the value of such investments. Under Ind AS, the company has valued the said investments(Other than investment in subsidiaries, associate and joint ventures which are accounted at Cost), at fair value. Impact of fair value changes as on the date of transition, is recognised in opening reserves and changes thereafter are recognised in statement of Profit and Loss or other Comprehensive Income, as the case may be.

6 Security Deposits: The company has received security deposits from its contractors under the agreement. Under the Indian GAAP these security deposits were shown under long term liability. Under the Ind AS these deposits have been revalued at fair value using the present value method using a discount rate which is market borrowing rate. Difference between the Fair Value and Transaction Value of the deposits has been recognised as deferred income in the balance sheet and is released to profit & loss according to the nature and extent of the underlying transaction.

* Pursuant to the Amalgamation of Eldeco City limited, Halwasiya Agro Industries limited and MAK Sales Private Limited with the Company by the Order ofHon''ble National Company Law Tribunal, Allahabad bench, Allahabad & Honble High Court of Punjab and Haryana at Chandigarh.

** Pursuant to the Amalgamation of Eldeco City limited, with the Eldeco Housing & Industries Limited by the Order of Hon''ble National Company Law Tribunal, Allahabad bench, Allahabad the above mentioned Companies become the Wholly Owned Subsidiaries of the Company.

*** The Parent Company holds 32% equity shares of Omni Farms private Limited and in the year 2016-2017, Eldeco City Limited being wholly owned subsidiary of parent company has purchased 51% of equity shares of Omni Farms Private Limited by virtue of which, Eldeco Housing & Industries Limited and Eldeco City Limited together holds 83% of equity shares of Omni Farms Private Limited, thereby making the parent company the Ultimate Holding Company, further Pursuant to the Amalgamation of Eldeco City Limited, with the Eldeco Housing & Industries Limited by the Order of Hon''ble National Company Law Tribunal, Allahabad bench, Allahabad the above mentioned Companies become the Wholly Owned Subsidiaries of the Company.

****The Reserve Bank of India has issued Directions as per Section 35A of the Banking Regulation Act, 1949 to Indian Mercantile Co-operative Bank Ltd., Lucknow. According to the Directions, the Indian Mercantile Co-operative Bank Ltd., Lucknow cannot and without prior approval of the Reserve Bank in writing grant or renew any loans and advances, make any investment, incur any liability including borrowal of funds and several other types of restriction. The issue of the Directions by the Reserve Bank should per se not be construed as cancellation of banking license by the Reserve Bank. The Reserve Bank may consider modifications of these directions depending upon circumstances thereby the Company has written off the Investments.

***** During the year the Investee Company has closed its business operations and applied for Strike off its name from MCA. The approval ofthe same has been received on 12.10.2017. Pursuant to information received the Company has written off its Investments.

*Includes deposits of Rs 106.29 Lacs from City Cooperative Bank Limited, against overdraft facility of Rs 46.07 Lacs. The said Bank has discontinued its operations, however the company has appliedfor repayment of fixed deposit after adjustment of the balance outstanding in the overdraft account. A writ petition is also pending in respect of the same in Allahabad High Court.

2.1 Loans and Advances includes payment to parties (including associates) for acquiring land for development of real estate projects, either on collaboration basis or self- development basis, for bulk booking, and for purchase of commercial space.

2.2 Particulars in respect of loans and advances to subsidiary companies:

Notes:

During the year Authorised Share Capital was increased by 3,55,50,000 being Equity Shares increased by 1,80,50,000 and Preference Shares increased by 1,75,00,000 ofRs. 10 each pursuant to the Amalgamation ofEldeco City limited, Halwasiya Agro Industries limited and MAK Sales Private Limited with the Company by the Order ofHon''ble National Company Law Tribunal, Allahabad bench, Allahabad & Honble High Court of Punjab and Haryana at Chandigarh.

The aforesaid disclosure is based upon percentages computed separately for class of shares outstanding, as at the balance sheet date. As per records of the company, including its register of shareholders/members and other declarations received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownerships of shares.

3.1 Terms/rights attached to paid up equity shares

The company has only one class of equity shares having a par value of Rs 10/-. Each holder of equity shares is entitled to one vote per share. 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.During the year ended March 31st, 2018, the amount of dividend proposed as distribution to equity share holders is Rs 12.50 per share.

Nature of Security of Working Capital & Short Term Loan from Bank :

(i) Residential and Commercial Land with construction of site office and surrounded by boundary wall and gate at Faizullahganj, Mohibullapur Sitapur Road, near Janakipuram flyover, Lucknow bearing khasra no. 58,59,60 & 85 measuring 15141.54 sq. mts. Land having khasra no. 703,704 & 851 ka Haiwat Mau Mawajya, Pargana Bijnor, Ward Ibrahimpur, Raibareilly Road, Lucknow.

(ii) Further Secured by personal guarantee of Shri S.K.Garg & Shri Pankaj Bajaj (Chairman cum Managing Director).

(iii) Further Secured by First Charge on Block Assets of the Company.

(iv) In overdraft account secured against lien on bank Fixed Deposits and personal guarantee of Directors.

(v) Short Term Loan is availed for purchase of 67.58% of the shareholding of Eldeco City Private Limited (now known as Eldeco City Limited) from Xander Investment Holding Private Limited and Nalonrod Holdings Limited, thereby becomes wholly owned subsidiary of the company (Refer Note No. 3) and secured by:

a. Pledge of 100% Equity Shares of Eldeco City Private Limited (Now Known as Eldeco City Limited).

b. First Equitable Mortgage of "Eldeco Shaurya" project land, admeasuring 43.069 acres approximately, located at village Bijnor, Tehsil Mohan Lal Ganj, near Bhonwal Engineering College, Lucknow, with construction thereon, present and future.

c. Charge on the entire sale proceeds/receivables accruing from sold and unsold area of the entire "Eldeco Shaurya" project at the above-mentioned land.

d. Personal Guarantee of Mr. Pankaj Bajaj, Chairman cum Managing Director.

e. And/or any other security of higher or equivalent amount as may be acceptable to bank so as to maintain the said Loan-Asset-Cover at a minimum of 2.00 times the principal outstanding at all times.

*Includes overdraft facility of Rs 46.07 Lacs from City Cooperative Bank Limited, against fixed deposit of Rs 106.29 Lacs. The said Bank has discontinued its operations, however the company has applied for repayment offixed deposit after adjustment of the balance outstanding in the overdraft account. A writ petition is also pending in respect of the same in Hon''bleAllahabad High Court.

** In theprevious year Company has taken unsecured loan from wholly owned subsidiary company Eldeco City Limited. The loan is repayable on demand with yearly interest rate of6% p.a.

Dues to Micro, Small and Medium Enterprises have been determined to the extent such parties have been identified on the basis of information collected by the Management. This has been relied upon by Auditors.

4. RELATED PARTY DISCLOSURES:

Details of disclosure as required by Indian Accounting standard (Ind AS) - 24 on Related Party Disclosures are as under:-

A. Names of related parties and description of relationship:

1. Subsidiary Company

1 Omni Farms Private Limited#

# The Parent Company holds 32% equity shares of Omni Farms Private Limited and in the year 2016-2017 Eldeco City Limited being wholly owned subsidiary of parent company has purchased 51% of equity shares of Omni Farms Private Limited by virtue of which, Eldeco Housing & Industries Limited and Eldeco City Limited together holds 83% of equity shares of Omni Farms Private Limited, thereby making the parent company the Ultimate Holding Company, further Pursuant to the Amalgamation of Eldeco City limited, with the Eldeco Housing & Industries Limited by the Order of Hon''ble National Company Law Tribunal, Allahabad bench, Allahabad, Omni Farms Private Limited become the Subsidiary of the Company.

2. Entities over which key managerial personnel or their relatives exercises significant influence

1 S.K Garg Constructions Pvt. Ltd

2 Lucknow Cement Crafts Private Limited

3 Eldeco Infrastructure & Properties Limited

4 Surya Season Foods Private Limited

5 Eldeco Townships & Housing Limited

6 K L Multimedia Private Limited

7 Eldeco Township and Housing Limited

8 Eldeco Jalandhar Properties Private Limited

9 Eldeco County Limited

10 Ecoeski Developers Private Limited

11 Shrikant Jajodia (HUF)

12 Mannat Homes Private Limited

13 Eldeco SIDCUL Industrial Park Limited

14 Swabhiman Buildtech Limited

15 Indimedics Healthcare Private Limited

16 Pankaj Bajaj (HUF)

3. Wholly Owned Subsidiary Companies

1 Garv Constructions Private Limited

2 Milaap Constructions Private Limited

3 Samarpit Constructions Private Limited

4 Suniyojit Constructions Private Limited

5 Sushobhit Constructions Private Limited

6 Primacy Constructions Private Limited

7 Perpetual Constructions Private Limited

8 Khwahish Constructions Private Limited

9 Fixity Constructions Private Limited

10 Facility Constructions Private Limited

11 Deepjyoti Constructions Private Limited

12 Shivaye Constructions Pvt Ltd

13 Swarg Constructions Private Limited

14 Carnation Realtors Private Limited

15 Iris Realtors Private Limited

16 Neo Realtors Private Limited

17 Neptune Infracon Private Limited

18 Numerous Constructions Private Limited

19 Swarnim Nirman Private Limited

20 Villa Constructions Private Limited

21 Halwasiya Agro Industries Limited*

22 M.A.K Sales Private Limited *

23 Eldeco City Limited*

24 Aaj Constructions Private Limited**

25 Flourish Constructions Private Limited**

26 Yojna Constructions Private Limited**

27 Aadesh Constructions Private Limited***

28 Mahal Constructions Private Limited***

29 Prasiddhi Constructions Private Limited****

30 Artistry Construction Private Limited*****

31 Erudite Constructions Private Limited*****

32 Frozen Constructions Private Limited*****

33 Heather Buildcon Private Limited*****

34 Placate Constructions Private Limited*****

35 Swarajya Builders Private Limited*****

36 Dua Constructions Private Limited*****

37 Utsav Constructions Private Limited*****

38 Conviction Constructions Private Limited*****

39 Turbo Realtors Private Limited*****

(*) Merged pursuant to the Amalgamation of Eldeco City limited, Halwasiya Agro Industries limited and MAK Sales Private Limited with the Company by the Order of Hon''ble National Company Law Tribunal, Allahabad bench, Allahabad & Hon''ble High Court of Punjab and Haryana at Chandigarh.

(**) Become wholly owned Subsidiary w.e.f 29.10.2016 (***) Ceased to be wholly owned subsidiary w.e.f 8.11.2016 (****) Ceased to be wholly owned subsidiary w.e.f 21.01.2017

(*****) Pursuant to the Amalgamation of Eldeco City limited, become wholly owned subsidiaries of company.

4. Key Management Personnel

1 Mr Pankaj Bajaj Chairman cum Managing Director

2 Mr. Shrikant Jajodia Director

3 Mr. S.K. Garg* Director

4 Mr. Arvind Bajaj** Director

5 Mr. Ashish Jain Independent Director

6 Mr. Ranjeet Khattar Independent Director

7 Mr. Anil Tiwari Independent Director

8 Mr. Rahul Aggarwal Independent Director

9 Mrs. Rupali Chopra Independent Director

* Ceased to be Chairman w.e.f. 28th Feburary, 2017

** Ceased to be Director w. e.f. 21stFeburary, 2017

5. Relatives of Key Management Personnel

1 Mrs. Asha Bajaj Mother ofMr. Pankaj Bajaj

2 Mrs. Varija Bajaj Sister of Mr. Pankaj Bajaj

3 Mrs. Rashi Bajaj Wife ofMr. Arvind Bajaj

5. Business Combination

a) The Hon’ble High Court of Punjab & Haryana at Chandigarh in terms of its order passed on 17.11.2016, and by the National Company Law Tribunal Allahabad Bench at Allahabad of its order passed on 16.08.2017 has sanctioned Scheme of Amalgamation u/s 391 to 394 of the Companies Act, 1956 between the Company “Eldeco Housing & Industries Limited” (‘the Amalgamated Company’) and “Halwasiya Agro Industries Limited and MAK Sales Private Limited” (‘the Amalgamating Company’) and their respective shareholders and creditors with effect from 01-04-2015 (Appointed date).

Consequent to the above order, the results of the merged undertaking have been accounted for under “Pooling of Interest method” as per the then prevailing Accounting Standard (as detailed in the Accounting Standard 14 -Accounting for Amalgamations) in the financial statements of the Company, accordingly, all assets and liabilities of Amalgamating Company have been recorded in the books of accounts and transferred to and vested in Amalgamated Company at the values appearing in the books of accounts of Amalgamating Company on appointed date.

Since the Amalgamating Companies are wholly owned subsidiary companies of the Amalgamated Company, the Amalgamating Company pursuant to this scheme will issue no shares.

Consequently the company has taken over following assets and liabilities of the amalgamating company as at April 1, 2015:

The Company has elected to apply Ind AS-103 prospectively to business combination occurring after transition date. Accordingly, business combination occurring prior to transition date have not been restated.

Had the Company followed Ind AS 103, Business Combinations, the merger would have been recognized from the date of acquisition of control over the combining entity (Amalgamating Company).

b) The Hon’ble National Company Law Tribunal, Allahabad Bench, Allahabad in terms of its order passed on 27.03.2018, has sanctioned Scheme of Amalgamation u/s 230 to 232 ofthe Companies Act, 2013 between the Company “Eldeco Housing & Industries Limited” (‘the Amalgamated Company’) and “Eldeco City Limited” (‘the Amalgamating Company’) and their respective shareholders and creditors with effect from 01-04-2017 (Appointed date)

Consequent to the above order, the results of the Amalgamating entity have been accounted for under “Pooling of Interest method” (as detailed in the Ind AS-103 -Accounting for Business Combination) in the financial statements of the Company, accordingly, all assets and liabilities of Amalgamating Company have been recorded in the books of accounts and transferred to and vested in Amalgamated Company at the values appearing in the books of accounts of Amalgamating Company on appointed date.

Since the Amalgamating Company is wholly owned subsidiary company of the Amalgamated Company, the Amalgamated Company pursuant to this scheme will issue no shares.

In compliance with Ind AS-103, the details of value of net identifiable assets acquired are as under:

6 Defined Benefit Plan- Gratuity

1 Actuarial Assumptions

a) Economic Assumptions:

The principal assumptions are the discount rate & salary growth rate. The discount rate is generally based upon the market yields available on Government, bonds at the accounting date relevant to currency of benefit payments for a term that matches the liabilities. Salary growth rate is company’s long term best estimate as to salary increases & takes account of inflation, seniority, promotion, business plan, HR policy and other relevant factors on long term basis as provided in relevant accounting standard. These valuation assumptions are as follows:

b) Demographic Assumption:

Attrition rates are the company’s best estimate of employee turnover in future determined considering factors such as nature of business & industry, retention policy, demand & supply in employment market, standing of the company , business plan, HR Policy etc as provided in the relevant accounting standard. Attrition rates as given below:

7.1: Effect of plan on entity’s future cash flows

(a): Funding arrangements and funding policy

The company has purchased an insurance policy to provide for payment of gratuity to the employees. Every year, the insurance company carries out a funding valuation based on the latest employee data provided by the company. Any deficit in the assets arising as results of such valuation is funded by the company

7.2: Sensitivity Analysis: Significant actuarial assumptions for the determination of the defined benefit obligation are discount rate and expected salary increase rate. Effect of change in mortality rate is negligible. Please note that the sensitivity analysis presented below may not be representative of the actual change in the defined benefit obligation as it is unlikely that the change in assumption would occur in isolation of one another as some of the assumptions may be correlated. The results of sensitivity analysis are given below:

Description of Risk Exposures:

Valuations are based on certain assumptions, which are dynamic in nature and vary over time. As such company is exposed to various risks as follow -

A) Salary Increases- Actual salary increases will increase the Plan’s liability. Increase in salary increase rate assumption in future valuations will also increase the liability.

B) Investment Risk- If Plan is funded then assets liabilities mismatch & actual investment return on assets lower than the discount rate assumed at the last valuation date can impact the liability.

C) Discount Rate - Reduction in discount rate in subsequent valuations can increase the plan’s liability.

D) Mortality & disability - Actual deaths & disability cases proving lower or higher than assumed in the valuation can impact the liabilities.

E) Withdrawals - Actual withdrawals proving higher or lower than assumed withdrawals and change of withdrawal rates at subsequent valuations can impact Plan’s liability.

Leave encashment ( Unfunded)

The valuation of Leave Encashment has been done on the basis of acturial valuation on projected unit ( PUC) method and is provided in the financial statement and does not require disclosure as mentioned in Para 158 of IND AS 19. Provision of leave encashment as per actuarial is less than the liability provided in books of accounts, hence the management has made the provision for leave encashment on accrual basis.

Defined Contribution Plan

Provident Fund - The company contributes Provident Fund ( Employer as well as Employee Share) to Provident Fund Commissioner ( U.P) and Employers Contribution to such fund is charged to Statement of Profit and Loss. The Provident fund contribution charged to Statement of Profit and Loss for the year ended 31.03.2018 amounted to Rs 1,659,576/-

8 Financial Risk Management

The company activities exposes it to variety at financial risk i.e. Credit Risk , Liquidity Risk , Capital Risk , Interest Rate Risk. These risks are managed by senior management of the company and is supervised by Board of Directors of the company , to minimise potential adverse effects on the financial performance ofthe company.

(i) Credit Risk : Credit risk from cash and cash equivalents and bank deposits is considered immaterial in view of the creditworthiness of the banks the company works with. Credit risk is the risk i.e a customer or the counter party fails to pay to the company causing financial loss. The credit risk primarily arises from outstanding receivables from customer. The company has specific policies for managing customer credit risk on an ongoing basis; These policies factor in the customer financial position, past experience and other customer specific factor.

Financial assets are written off when there is no reasonable expectation of recovery, such as a debtor failing to engage in a repayment plan with the company. The Company makes provision for doubtful debt or write off when a debtor fails to make contractual payments greater than two years past due. When loans or receivables have either been provided for or written off, the company continues to engage in enforcement activity to attempt to recover the receivable due. When recoveries are made, these are recognised in the Statement of Profit and Loss. The company has low credit risk in respect to cash and cash equivalent, other bank balances, other financial assets, trade receivables and security deposits paid.

(ii) Liquidty Risk : Liquidity Risk is the risk that the company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The company approach to managing liquidity is to ensure as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due. Management monitors rolling forecasts of the liquidity position and cash and cash equivalent on the basis of expected cash flows. The company takes into account the liquidity of the market in which the entity operates.

The above chart depicts that the company have adequate liquidity and considers liquidity risk as low risk.

(iii) Capital Risk Management: The company capital risk management objective is to ensure that all times it remains a going concern and safeguards the interest of the shareholders and other stakeholders. The company monitors capital on the basis of carrying amount of equity plus its subordinated loan, less cash and other cash equivalents as presented on the face of the statement of financial position and cash flow hedges recognised in other comprehensive income.

The company manages its capital structure and makes adjustments to it in the light of changes in economic conditions and the risk characteristics of the underlying assets. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to the shareholders, return capital to shareholders or issue new shares. The amount managed as capital by the Company are summarised as follows:

(iv) Interest Rate Risk : The company has working capital facilities with the bank. The company policy is to minimize cash flow risk exposure on short term borrowings. At 31st March the company is exposed to changes in market interest rate through bank borrowings at variable interest rates. The company exposure to interest rate risk on borrowings is as follows:

The above chart depicts that the company have low interest risk

(v) Foreign Currency Risk : The company do not normally deal in foreign currency transactions. The company do not have any foreign currency risk.

9 The Company is engaged in the business of Real Estate activities. These in context of Indian Accounting Standard 108 (Ind AS 108) on Segment Reporting are considered to constitute one single primary segment.

10 Standards issued but not effective.

The amendments to standards that are issued, but not yet effective, up to the date of issuance of the Company’s financial statements are disclosed below. The Company intends to adopt these standards, if applicable, when they become effective. The Ministry of Corporate Affairs (MCA) has issued the Companies (Indian Accounting Standards) Amendment Rules, 2017 and Companies (India Accounting Standards) Amendments Rules, 2018 amending the following standards:

Ind AS 115 Revenue from Contracts with Customer.

Ind AS 115 was issued on 29 March 2018 and establishes a five-step model to account for revenue arising from contracts with customers. Under Ind AS 115, revenue is recognized at an amount that reflects that consideration to which an entity expects to be entitled in exchange for transferring goods or service to a customer.

The new revenue standard will supersede all current revenue recognition requirements under Ind AS and the guidance note on real estate issued by ICAI. Ind AS 115 is applicable to the Company for annual periods beginning on or after 1st April, 2018.

The management of the Company believes that the contract satisfies the conditions of Ind AS 115 for recognition of revenue over time. Hence the effect of applying Ind AS 115 on the financial statements will be immaterial.

11 Event after the reporting period

The Board of Directors of the Company have recommended dividend of Rs. 12.50/- per share for the financial ended 31.03.2018 for the approval of shareholders. The actual dividend outgo and tax thereon will be dependant on share capital outstanding as on recorded/book closure.

12 Previous years figures have been regrouped, rearranged or reclassified, wherever necessary to confirm the current year''s classification.

---

Mar 31, 2016

*Includes overdraft facility of Rs 46.07 Lacs from City Cooperative Bank Limited, against fixed deposit of Rs 106.29 Lacs. The said Bank has discontinued its operations, however the company has applied for repayment of fixed deposit after adjustment of the balance outstanding in the overdraft account. A writ petition is also pending in respect of the same in Hon''ble Allahabad High Court.

* The information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 ("the Act") has been determined to the extent such parties have been identified by the company, on the basis of information and records available.

1. Determination of revenues in respect of real estate projects under the ‘Percentage of Completion method’ necessarily involves making estimates by management for projected revenues, projected profits, and costs to completion and foreseeable loss. These estimates being of a technical nature have been relied upon by auditors.

2. Inventories, loans & advances , trade receivables and other current/noncurrent assets are in the opinion of the management do not have a value on realization in the ordinary course of the business, less than the amount at which they are stated in the Balance Sheet.

3. Balance in trade receivables, trade payables, current / noncurrent advances given / received are subject to reconciliation and confirmation from respective Parties. The balance of said trade receivables, trade payables, current / noncurrent advances given / received are taken as shown by the books of accounts. The ultimate outcome of such reconciliation and confirmation cannot presently be determined; therefore no provision for any liability that may result of such reconciliation and confirmation has been made in the financial statement.

4. The Company has an investment of Rs.42,000.00 (31.03.2015 Rs.42,000.00) in Luck now Cement Crafts Private Limited (LCC). There are accumulated losses in LCC. The management of the Company is of the opinion that investment in LCC is long term strategic investment therefore; provision for diminution in value of investment is not made.

5. Segment Reporting

Based on similarity of activities/products, risk and reward structure, organization structure and internal reporting system, the company has structured its operation in to the following segments:

(i) Real Estate: Promotion, construction, development and sale of townships, residential, commercial property, developed plots etc.

(ii) Construction: Construction of property on behalf of others/clients.

During the year and immediately preceding year company has undertaken only one activity/segment of real estate and no construction contract is undertaken by the company. Further operations of the Company do not qualify, for reporting as geographic segments, under the criteria set out under Accounting Standard 17 on ‘ Segment reporting’.

6. During the year Company has filed a Scheme of Amalgamation between wholly owned subsidiary companies namely Halwasiya Agro Industries Limited and MAK Sales Private Limited (Transferor Company) with Eldeco Housing and Industries Limited (Transferee Company) under section 391 & 394 of the Companies Act, 1956. The appointed date of the amalgamation being 01.04.2015 and same is pending for final approval from Hon’ble Luck now High Court.

7. Interest in Joint Venture

The Company was entered in to a 67.58:32.42 (being company share is 32.42%) Joint Venture in Eldeco City Private Limited (incorporated in India) with M/s Xander Investment Holding IV Limited (Mauritius) for development of the Real Estate Project in India. For the purposes of Company’s share in assets, liabilities, income & expenses, proportionate consolidation method has been adopted. The Company’s interest in the Joint Venture is reported as Non Current Investments (Note no. 13) of the Balance Sheet and stated at cost.

The Company’s share of each of the assets, liabilities, income & expenses (each after elimination of, the effect of transactions between the Company and the Joint Venture) related to its interests in this joint venture based on un-audited results are given here under:

8. RELATED PARTY DISCLOSURES:

Details of disclosure as required by “Accounting standard (AS) -18 on Related Party Disclosures” are as under:-A. Names of related parties and description of relationship:

1. Associate Company

1 Omni Farms Private Limited

2. Entities over which key managerial personnel or their relatives exercises significant influence

1 S.K Garg Constructions Pvt. Ltd

2 Luck now Cement Crafts Private Limited

3 Eldeco Infrastructure & Properties Limited

4 Surya Season Foods Private Limited

5 Eldeco Townships & Housing Limited

6 KL Multimedia Private Limited

7 Eiffel Recreation Club Private Limited

3. Wholly Owned Subsidiary Companies

1 Aadesh Constructions Private Limited

2 Garv Constructions Private Limited

3 Mahal Constructions Private Limited

4 Milaap Constructions Private Limited *

5 Samarpit Constructions Private Limited

6 Suniyojit Constructions Private Limited

7 Halwasiya Agro Industries Limited

8 M. A.K Sales Private Limited

9 Sushobhit Constructions Private Limited

10 Primacy Constructions Private Limited

11 Prasiddhi Constructions Private Limited

12 Perpetual Constructions Private Limited

13 Khwahish Constructions Private Limited

14 Fixity Constructions Private Limited

15 Facility Constructions Private Limited

16 Deepjyoti Constructions Private Limited

17 Bliss Constructions Private Limited * *

18 Shivaye Constructions Pvt Ltd

19 Swarg Constructions Private Limited

20 Carnation Realtors Private Limited * * *

21 Iris Realtors Private Limited***

22 Neo Realtors Private Limited * * *

23 Neptune Infracon Private Limited***

24 Numerous Constructions Private Limited * * *

25 SwamimNirman Private Limited***

26 Villa Constructions Private Limited * * *

27 Eldeco City Private Limited* * * *

(*) Ceased to be a Wholly owned subsidiary w.e.f 28thFebruary2016

(**) Ceased to be a Wholly owned subsidiary w.e.f llthFebruary2016

(* * *) Become Wholly owned subsidiary w.e.f 01 st June 2015

(****) Become Wholly owned subsidiary w.e.f 11th January 2016

9. Step Subsidiaries ( Subsidiary companies of Eldeco City Private Limited)

1 Aaj Construction Private Limited

2 Artistry Constructions Private Limited

3 Erudite Constructions Private Limited

4 Flourish Constructions Private Limited

5 Frozen Constructions Private Limited

6 Heather Buildcon Private Limited

7 Placate Constructions Private Limited

8 Yojna Constructions Private Limited

9 Swarajya Builders Private Limited

10 Dua Constructions Private Limited

11 Utsav Constructions Private Limited

12 Conviction Constructions Private Limited

13 Turbo Realtors Private Limited

10. Key Management Personnel

1 Mr Shiv Kumar Garg Executive Chairman

2 Mr Pankaj Bajaj Managing Director

3 Mr. Shrikant Jajodia Director

4 MrArvindBajaj Director

11. Relatives of Key Management Personnel

1 Mrs Asha Bajaj Mother of Mr Pankaj Bajaj

2 MrsVarijaBajaj Sister ofMr Pankaj Bajaj

3 Mrs Rashi Bajaj WifeofMrArvindBajaj

4 Mrs Pushpa Gupta Sister of Mr S.K. Garg

5 Ms Shivani Garg Daughter of Mr S.K. Garg

12. During the year company has made a provision of Rs. 50 lacs for payment of Director’s Remuneration to the Managing Director Mr. Pankaj Bajaj w.e.f. 1st April, 2015. The same was approved by Board of Directors vide circular resolution passed on 16th May, 2015 and recommended by Nomination and Remuneration Committee vide circular resolution dated 8th May, 2015. In terms of section 197(1) read with first and second proviso of the Act, and further read with Schedule V Part II Section V of the Act exceeds the maximum limit of remuneration for which approval of members as special resolution and Central Government is required which was approved by the Board of Directors on 11th august, 2015. The same was approved by the shareholders in the Annual General Meeting held on 25th September, 2015 and application for approval from the Central Government has been filed by the company on 18th January, 2016. The approval from Central Government is still awaited.

13. As per the requirements of sub section (5) of section 13 5 of the Companies Act, 2013, the Company was required to spend at least two percent of its average net profits of the three immediately preceding financial years, in pursuance of its Corporate Social Responsibility (CSR). Accordingly, The amount of expenditure for the year ended 31st March, 2016, which the Company was required to incur related to Corporate Social Responsibility worked out to be Rs.20,28,804/-(P.Y.23,32,884/-). During the year ended 31st March, 2016, the Company has incurred a sum of Rs. 112332/- (P.Y. Nil) on this account.

14. The Company has regrouped/ reclassified previous year figures where necessary to conform to with current year’s classification.

15. All notes number 1-42 forms an integral part of the financial statements.

---

Mar 31, 2015

1. Terms/ Rights Attached to Equity Shares

The Company has only one class of Equity Shares having a par value of Rs.10 per share. Each holder of Equity Shares is entitled to one vote per share and ranks pari passu. The Dividend proposed by the Board of Directors is subject to approval of the shareholders at the ensuing Annual General Meeting. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

*The aforesaid disclosure is based upon percentages computed separately for class of shares outstanding as at the balance sheet date. As per records of the company, including its register of shareholders/members and other declaration received from shareholders regarding beneficial interest, the above shareholding represents both legal & beneficial ownership of shares.

2. Nature of Security of Term Loan :

Term Loan from bank are secured by Equitable Mortgage of Commercial Property of Plot No TC/G-10/10 Group Housing Scheme, Vibhuti Khand, Gomti Nagar, Lucknow.

3. Nature of Security of Working Capital Loans :

(i) Residential and Commercial Land with construction of site office and surrounded by boundary wall and gate at Faizullahganj,Mohibullapur Sitapur Road, near Jankipuram flyover, Lucknow bearing khasra no. 58,59,60 & 85 measuring 15141.54 sq. mts. Land having khasra no. 703,704 & 851 ka Haiwat Mau Mawajya, Pargana Bijnor, Ward Ibrahimpur, Raibareilly Road, Lucknow.

(ii) Further Secured by personal guarantee of Shri S.K.Garg (Chairman) & Shri Pankaj Bajaj (Managing Director).

(iii) Further Secured by First Charge on Block Assets of the Company.

(iv) In overdraft account secured against lien on bank Fixed Deposits and personal guarantee of Directors.

*Includes overdraft facility of Rs 46.07 Lacs from City Cooperative Bank Limited, against fixed deposit of Rs 106.29 Lacs. The said Bank has discontinued its operations, however the company has applied for repayment of fixed deposit after adjustment of the balance outstanding in the overdraft account.

* The Company has not received informations from vendors regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosure relating to amounts unpaid as at the year end together with interest paid/ payable under the Act has not been given.

4. Loans and Advances includes payment to parties (including associates) for acquiring land for development of real estate projects, either on collaboration basis or self- development basis, for bulk booking, and for purchase of commercial space.

(Amount in Rupees

5. Contingent Liability As At As At 31st March, 2015 31st March, 2014

(a) Claims against the company not acknowledge as debt

1 Sales Tax & VAT - 5,195,009.00

2 Income Tax 2,335,398.00 2,339,155.00

(b) Guarantees

1 Earnest Money 15,196,991.00 26,535,217.00

2 Bank Guarantee 12,360,250.00 18,860,250.00

6. Determination of revenues in respect of real estate projects under the 'Percentage of Completion Method' necessarily involves making estimates by management for projected revenues, projected profits, and costs to completion and foreseeable loss. These estimates being of a technical nature have been relied upon by auditors.

7. Inventories, loans & advances , trade receivables and other current/non current assets are in the opinion of the management do not have a value on realization in the ordinary course of the business, less than the amount at which they are stated in the Balance Sheet.

8. Balance in trade receivables, trade payables, current / non current advances given / received are subject to reconciliation and confirmation from respective Parties. The balance of said trade receivables, trade payables, current / non current advances given / received are taken as shown by the books of accounts. The ultimate outcome of such reconciliation and confirmation cannot presently be determined; therefore no provision for any liability that may result of such reconciliation and confirmation has been made in the financial statement.

9. The Company has an investment of Rs.42,000.00 (31.03.2014 Rs.42,000.00) in Lucknow Cement Crafts Private Limited (LCC). There are accumulated losses in LCC. The management of the Company is of the opinion that investment in LCC is long term strategic investment therefore; provision for diminution in value of investment is not made.

10. During the year effective from 1st April, 2014, the Company has revised estimated useful life of all of its fixed assets as per the Schedule II of the Companies Act, 2013. Based on current estimates, depreciation of Rs 543143.79 (net of deferred tax asset of Rs. 268281.00) on account of assets whose useful life has already been exhausted as on 01.04.2014, has been adjusted with opening balance of Reserves and Surplus. Had there not been any change in the useful life of the fixed assets, depreciation for the year ended 31.03.2015 would have been lower by Rs.2000180.41.

11. Interest in Joint Venture

The Company entered in to a 67.58:32.42 (being company share is 32.42%) Joint Venture in Eldeco City Private Limited (incorporated in India) with M/s Xander Investment Holding IV Limited (Mauritius) for development of the Real Estate Project in India. For the purposes of Company's share in assets, liabilities, income & expenses, proportionate consolidation method has been adopted. The Company's interest in the Joint Venture is reported as Non Current Investments (Note no. 13) of the Balance Sheet and stated at cost.

12. Segment Information

a. Business Segments

Based on similarity of activities/products, risk and reward structure, organisation structure and internal reporting system, the company has structured its operation into the following segments:

b. Real Estate

Promotion, construction, development and sale of townships, residential, commercial property, developed plot etc. Construction

c. Construction of property on behalf of others.

13. Geographic Segment

Operation of the company do not qualify for reporting as geographic segments, under the criteria set out under Accounting Standard 17 on Segment reporting.

14. RELATED PARTY DISCLOSURES:

Details of disclosure as required by "Accounting standard (AS) - 18 on Related Party Disclosures" are as under:- A. Names of related parties and description of relationship:

1. Associate Company

1 M.A.K.Sales Private Limited*

2 Omni Farms Private Limited

*Ceased to be Associate w.e.f 5th July 2014

2. Entities over which key managerial personnel or their relatives exercises significant influence

1 S.K Garg Constructions Pvt. Ltd

2 Lucknow Cement Crafts Private Limited

3 Eldeco Infrastructure & Properties Limited

4 Surya Season Foods Private Limited

5 Eldeco Townships & Housing Limited

6 K L Multimedia Private Limited

7 Eiffel Recreation Club Private Limited

8 Garg Singhal & Associates prop Jyoti Singhal

9 Space Combine prop Manoj Singhal

3. Wholly Owned Subsidiary Companies

1 Aadesh Constructions Private Limited

2 Garv Constructions Private Limited

3 Mahal Constructions Private Limited

4 Milaap Constructions Private Limited

5 Samarpit Constructions Private Limited

6 Suniyojit Constructions Private Limited

7 Halwasiya Agro Industries Limited

8 M.A.K Sales Private Limited *

9 Sushobhit Constructions Private Limited

10 Primacy Constructions Private Limited

11 Prasiddhi Constructions Private Limited

12 Perpetual Constructions Private Limited

13 Khwahish Constructions Private Limited

14 Fixity Constructions Private Limited

15 Facility Constructions Private Limited

16 Deepjyoti Constructions Private Limited

17 Bliss Constructions Private Limited

18 Shivaye Constructions Pvt Ltd

19 Swarg Constructions Private Limited *Become Subsidiary w.e.f 5th July 2014

4. Other Subsidiary Companies

1 Carnation Realtors Private Limited

2 Iris Realtors Private Limited

3 Neo Realtors Private Limited

4 Neptune Infracon Private Limited

5 Numerous Constructions Pvt Ltd

6 Swarnim Nirman Private Limited

7 Villa Constructions Private Limited

5. Joint Venture Company

1 Eldeco City Private Limited

6. Key Management Personnel

1 Mr Shiv Kumar Garg Executive Chairman

2 Mr Pankaj Bajaj Managing Director

3 Mr. Shrikant Jajodia Director

4 Mr Arvind Bajaj Director

7. Relatives of Key Management Personnel

1 Mrs Asha Bajaj Mother of Mr Pankaj Bajaj

2 Mrs Varija Bajaj Sister ofMr Pankaj Bajaj

3 Mrs Rashi Bajaj Wife of Mr Arvind Bajaj

4 Mr Rajeev Bansal Son in Law ofMr S.K.Garg

5 Mr Manoj Singhal Son in Law of Mr S.K.Garg

6 Mrs Jyoti Singhal Daughter of Mr S.K.Garg

7 Mrs Pushpa Gupta Sister of Mr S.K.Garg

8 Ms Shivani Garg Daughter of Mr S.K.Garg

15. A. Employee Benefit

The details of the Company's post-retirement benefit plans for gratuity for its employees are given below which is certified by the actuary and relied upon by auditors:

B. Leave Encashment

Provision for leave encashment in respect of unavailed leaves standing to the credit of employees is made on accrual basis. The Company does not maintain any fund to pay for leave encashment.

Provision of leave encashment as per actuarial is less than the liability provided in books of accounts, therefore provision for leave encashment has been made on accrual basis.

C. Provident Fund

The Company makes contribution to statutory provident fund in accordance with Employees Provident Fund and Misc. Provision Act, 1952.

This is post employment benefit and is in the nature of defined contribution plan.

16. The Company has regrouped/ reclassified previous year figures where necessary to conform to with current year's classification.

17. All notes number 1-41 forms an integral part of the financial statements.

---

Mar 31, 2014

(Amount in Rupees)

1-Contingent Liability As At As At 31st March, 2014 31st March, 2013

(a) Claims against the company not acknowledge as debt

1 Sales Tax & VAT 5,195,009.00 3,858,454.00

2 Income Tax 1,792,395.00 2,592,330.00

(b) Guarantees

1 Earnest Money 26,535,217.00 26,828,348.00

2 Bank Guarantee 16,812,104.00 90,420,756.00

2. Determination of revenues in respect of real estate projects under the ''Percentage of Completion method'' necessarily involves making estimates by management for projected revenues, projected profits, and costs to completion and foreseeable loss. These estimates being of a technical nature have been relied upon by auditors.

3. Inventories, loans & advances, trade receivables and other current/non current assets are in the opinion of the management do not have a value on realization in the ordinary course of the business, less than the amount at which they are stated in the Balance Sheet.

4. Balance in trade receivables, trade payables, current / non current advances given / received are subject to reconciliation and confirmation from respective Parties. The balance of said trade receivables, trade payables, current / non current advances given / received are taken as shown by the books of accounts. The ultimate outcome of such reconciliation and confirmation can not presently be determined; therefore no provision for any liability that may result of such reconciliation and confirmation has been made in the financial statement.

5. The Company has an investment of Rs.42,000.00 (31.03.2013 Rs.42,000.00) in Lucknow Cement Crafts Private Limited (LCC). There are accumulated losses in LCC. The management of the Company is of the opinion that investment in LCC is long term strategic investment therefore; provision for diminution in value of investment is not made.

6. Segment Information

Business Segments

Based on similarity of activities/products, risk and reward structure, organisation structure and internal reporting system, the company has structured its operation into the following segments:

Real Estate

Promotion, construction, development and sale of townships, residential, commercial property, developed plot etc

Note: Figures in bracket represents previous year figures Geographic Segment Operation of the company do not qualify for reporting as geographic segments, under the criteria set out under Accounting Standard 17 on Segment reporting.

7. RELATED PARTY DISCLOSURES:

Details of disclosure as required by "Accounting standard (AS) -18 on Related Party Disclosures'''' are as under:- A. Names of related parties and description of relationship: ''

1. Associates

1 M.A.K.Sales Private Limited

2 Omni Farms Private Limited

3 Awadh Technology Park and SEZ Private Limited*

*Ceased to be Associate w.e.f 30th May 2013

2. Entities over which key managerial personnel or their relatives exercises significant influence

1 S.KGarg Constructions Pvt. Ltd

2 Lucknow Cement Crafts Private Limited

3 Ecodel Projects Private Limited

4 Eldeco Infrastructure & Properties Limited

5 Surya Season Foods Private Limited

6 Eldeco Townships & Housing Limited

7 K L Multimedia Private Limited

8 Eiffel Recreation Club Private Limited

9 Garg Singhal & Associates

10 Space Combine

3. Subsidiaries

1 Aadesh Constructions Private Limited

2 Garv Constructions Private Limited

3 Mahal Constructions Private Limited

4 Milaap Constructions Private Limited

5 Samarpit Constructions Private Limited

6 Suniyojit Constructions Private Limited

7 HalwasiyaAgro Industries Limited

8 Prayatna Constructions Private Limited *

9 Sushobhit Constructions Private Limited

10 Primacy Constructions Private Limited

11 Prasiddhi Constructions Private Limited

12 Perpetual Constructions Private Limited

13 Khwahish Constructions Private Limited

14 Fixity Constructions Private Limited

15 Facility Constructions Private Limited

16 Deepjyoti Constructions Private Limited

17 Bliss Constructions Private Limited

18 Carnation Realtors Private Limited

19 Iris Realtors Private Limited

20 Neo Realtors Private Limited

21 Neptune Infracon Private Limited

22 Numerous Constructions Pvt Ltd

23 Shivaye Constructions Pvt Ltd

24 Swarg Constructions Private Limited

25 SwamimNirman Private Limited

26 Villa Constructions Private Limited *Ceased to be Subsidiary w.e. f 9th April 2013

4. Joint Venture Company

1 Eldeco City Private Limited

5. Key Management Personnel

1 Mr Shiv Kumar Garg Executive Chairman

2 MrPankaj Bajaj Managing Director

3 Mr Shrikant Jaj odia * Director

*Ceased to be Whole Time Director w.e.f 1 st October 2013

6. Relatives of Key Management Personnel

1 MrsAshaBajaj Mother of MrPankaj Bajaj

2 Mrs Varija Bajaj Sister of MrPankaj Bajaj

3 MrO.P.Bajaj Father of MrPankaj Bajaj

4 MrArvindBajaj Brother of MrPankaj Bajaj

5 Mrs Rashi Bajaj Wife of Mr Arvind Bajaj

6 Mrs Vimla Garg WifeofMrS.K.Garg

7 Mr Brijendra Gupta SoninLawofMrS.K.Garg

8 MrRajeevBansal SoninLawofMrS.K.Garg

9 MrManoj Singhal SoninLawofMrS.K.Garg

10 MrA.K.Garg Brother of Mr S.K.Garg

11 Mrs Nirmal Garg Sister in law of Mr S.K.Garg

12 Mrs Pushpa Gupta Sister of Mr S.K.Garg

13 Mr Surya Kumar Gupta Brother in Law of Mr S.K.Garg

14 Ms Shivani Garg Daughter of Mr S.K.Garg

8 Employee Benefit

The details of the Company''s post-retirement benefit plans for gratuity for its employees are given below which is certified by the actuary and relied upon by auditors:

A. Gratuity

B. Leave Encashment

Provision for leave encashment in respect of unavailed leaves standing to the credit of employees is made on accrual basis. The Company does not maintain any fund to pay for leave encashment.

Provision of leave encashment as per actuarial is less than the liability provided in books of accounts, therefore provision for leave encashment has been made on accrual basis.

C. Provident Fund

The Company makes contribution to statutory provident fund in accordance with Employees Provident Fund and Misc. Provision Act, 1952.

This is post employment benefit and is in the nature of defined contribution plan.

9. In earlier year the Company was subjected to search under section 132 of the Income Tax Act, 1961. All the assessments for the assessment years 2006-07 to 2012-13 has been completed u/s 153A& 143(3) of the Income Tax Act, 1961. The total demand of Rs. 1577040/- has been raised which is adjusted by the Income Tax Department from the refunds of the Company. The Company has filed necessary appeal before the appropriate authorities in respect of addition made by the Assessing Officer.

10. Interest in Joint Venture

The Company entered in to a 67.58:32.42 (being company share is 32.42%) Joint Venture in Eldeco City Private Limited (incorporated in India) with M/s Xander Investment Holding IV Limited (Mauritius) for development of the Real Estate Project in India. For the purposes of Company''s share in assets, liabilities, income & expenses, proportionate consolidation method has been adopted. The Company''s interest in the Joint Venture is reported as Non Current Investments (Note no. 13) of the Balance Sheet and stated at cost.

The Company''s share of each of the assets, liabilities, income & expenses (each after elimination of, the effect of transactions between the Company and the Joint Venture) related to its interests in this joint venture based on un- audited results are given here under:

11. The Company has regrouped/ reclassified previous year figures where necessary to conform to with current year''s classification.

12. All notes number 1-41 forms an integral part of the financial statements.

---

Mar 31, 2013

( Amount in Rupees )

1. Contingent Liability As At As At March 31, 2013 March 31, 2012

(a) Claims against the company not acknowledge as debt

1 Sales Tax & VAT 3,858,454.00 1,618,393.00

2 Income Tax 545,760.00 2,591,330.00

(b) Guarantees

1 Earnest Money 26,928,348.00 38,021,852.00

2 Bank Guarantee 90,420,756.00 89,144,250.00

2. Determination of revenues in respect of real estate projects under the ''Percentage of Completion method'' necessarily

involves making estimates by management for projected revenues, projected profits, and costs to completion and foreseeable loss. These estimates being of a technical nature have been relied upon by auditors.

3. Inventories, loans & advances, trade receivables and other current/non current assets are in the opinion of the management do not have a value on realization in the ordinary course of the business, less than the amount at which they are stated in the Balance Sheet.

4. Balance in trade receivables, trade payables, current / non current advances given / received are subject to reconciliation and confirmation from respective Parties. The balance of said trade receivables, trade payables, current / non current advances given / received are taken as shown by the books of accounts. The ultimate outcome of such reconciliation and confirmation can not presently be determined; therefore no provision for any liability that may result of such reconciliation and confirmation has been made in the financial statement.

5. The Company has an investment of Rs.42,000.00 (31.03.2012 Rs.42,000.00) in Lucknow Cement Crafts Private Limited (LCC). There are accumulated losses in LCC. The management of the Company is of the opinion that investment in LCC is long term strategic investment; therefore provision for diminution in value of investment is not made.

6. Segment Information

Business Segments

Based on similarity of activities/products, risk and reward structure, organisation structure and internal reporting system, the company has structured its operation into the following segments:

Real Estate

Promotion, construction, development and sale of townships, residential, commercial property, developed plot etc

Note: Since this is the first year of application of disclosures as required by AS-17, corresponding previous year figures in respect of Segment Reporting has not been given.

Geographic Segment

Operation of the company do not qualify for reporting as geographic segments, under the criteria set out under Accounting Standard 17 on Segment reporting.

7. RELATED PARTY DISCLOSURES:

Details of disclosure as required by "Accounting standard (AS) - 18 on Related Party Disclosures" are as under:-

A. Names of related parties and description of relationship:

1. Associates

1 M.A.K.Sales Private Limited

2 Omni Farms Private Limited

3 Awadh Technology Park and SEZ Private Limited

2. Entities over which key managerial personnel or their relatives exercises significant influence

1 S.K Garg Constructions Pvt. Ltd

2 Lucknow Cement Crafts Private Limited

3 Ecodel Projects Private Limited

4 Eldeco Infrastructure & Properties Limited

5 Surya Season Foods Private Limited

6 Eldeco Townships & Housing Limited

7 S.K.Garg (HUF)

3. Subsidiaries

1 Aadesh Constructions Private Limited

2 Garv Constructions Private Limited

3 Mahal Constructions Private Limited

4 Milaap Constructions Private Limited

5 Samarpit Constructions Private Limited

6 Suniyojit Constructions Private Limited

7 Halwasiya Agro Industries Limited

8 Prayatna Constructions Private Limited

9 Sushobhit Constructions Private Limited

10 Primacy Constructions Private Limited

11 Prasiddhi Constructions Private Limited

12 Perpetual Constructions Private Limited

13 Khwahish Constructions Private Limited

14 Fixity Constructions Private Limited

15 Facility Constructions Private Limited

16 Deepjyoti Constructions Private Limited

17 Bliss Constructions Private Limited

18 Carnation Realtors Private Limited

19 Iris Realtors Private Limited

20 Neo Realtors Private Limited

21 Nepture Infracon Private Limited

22 Numerous Constructions Pvt Ltd

23 Shivaye Constructions Pvt Ltd

24 Swarg Constructions Private Limited

25 Swarnim Nirman Private Limited

26 Villa Constructions Private Limited

4. Joint Venture Company

1 Eldeco City Private Limited

5. Key Management Personnel

1 Mr Shiv Kumar Garg Chairman & Executive Director

2 Mr Pankaj Bajaj Managing Director

3 Mr Shrikant Jajodia Whole Time Director

6. Relatives of Key Management Personnel

1 Mrs Asha Bajaj Mother of Mr Pankaj Bajaj

2 Mrs Varija Bajaj Sister of Mr Pankaj Bajaj

3 Mr O.P.Bajaj Father of Mr Pankaj Bajaj

4 Mr Arvind Bajaj Brother of Mr Pankaj Bajaj

5 Mrs Rashi Bajaj Wife of Mr Arvind Bajaj

6 Mrs Vimla Garg Wife of Mr S.K.Garg

7 Mr Brijendra Gupta Son in Law of Mr S.K.Garg

8 Mr Rajeev Bansal Son in Law of Mr S.K.Garg

9 Mr Manoj Singhal Son in Law of Mr S.K.Garg

10 Mr A.K.Garg Brother of Mr S.K.Garg

11 Mrs Nirmal Garg Sister in law of Mr S.K.Garg

12 Mrs Pushpa Gupta Sister of Mr S.K.Garg

13 Mr Surya Kumar Gupta Brother in Law of Mr S.K.Garg

14 Ms Shivani Garg Daughter of Mr S.K.Garg

8. In earlier year the Company was subjected to search under section 132 of the Income Tax Act, 1961. During the course of search, Income Tax authorities taken custody of certain documents/records and recorded statements of certain officials of the Company. The tax officials are examining the records seized and statements recorded during the course of search. The Company has not received any communication or demand notice from the tax department in connection with the said search. Pending completion of search proceedings, tax liability if any that may arise, on this account, which is presently unascertainable, and will be recognized upon conclusion of search proceedings.

9. Interest in Joint Venture

The Company entered in to a 66.67:33.33 (being company share is 33.33%)Joint Venture in Eldeco City Private Limited (incorporated in India) with M/s Xander Investment Holding IV Limited (Mauritius) for development of the Real Estate Project in India. For the purposes of Company''s share in assets, liabilities, income & expenses, proportionate consolidation method has been adopted. The Company''s interest in the Joint Venture is reported as Non Current Investments (Note no. 13) of the Balance Sheet and stated at cost.

The Company''s share of each of the assets, liabilities, income & expenses (each after elimination of, the effect of transactions between the Company and the Joint Venture) related to its interests in this joint venture based on un-audited results are given here under:

10. The Company has regrouped/ reclassified previous year figures where necessary to conform to with current year''s classification.

11. All notes number 1-41 forms an integral part of the financial statements.

---

Mar 31, 2012

1.1 Terms/ Rights Attached to Equity Shares

The Company has only one class of Equity Shares having a par value of Rs. 10 per share. Each holder of Equity Shares is entitled to one vote per share and ranks pari passu. The Dividend proposed by the Board of Directors is subject to approval of the shareholders at the ensuing Annual General Meeting. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding

#The aforesaid disclosure is based upon percentages computed separately for class of shares outstanding as at the balance sheet date. As per records of the company, including its register of shareholders/members and other declaration received from shareholders regarding beneficial interest, the above shareholding represents both legal & beneficial ownership of shares.

Nature of Security of Working Capital Loans :

(i) Residential and Commercial Land with construction of site office and surrounded by boundary wall and gate at Faizullahganj, Mohibullapur Sitapur Road, near Janakipuram flyover, Lucknow bearing khasra no. 58,59,60,61,& 85 measuring 20500.24 sq. mts.

(ii) Further Secured by personal guarantee of Shri S.K.Garg (Chairman) & Shri Pankaj Bajaj (Managing Director).

(iii) Further Secured by First Charge on Block Assets of the Company (excluding land & building and vehicles)

(iv) In overdraft account secured against lien on bank Fixed Deposits and personal guarantee of Managing Director.

*Includes overdraft facility of Rs 46.07 Lacs from City Cooperative Bank Limited, against fixed deposit of Rs 106.29 Lacs. The said Bank has discontinued its operations, however the company has applied for repayment of fixed deposit after adjustment of the balance outstanding in the overdraft account.

* The Company has not received informations from vendors regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosure relating to amounts unpaid as at the year end together with interest paid/ payable under the Act has not been given.

*Includes deposits of Rs 106.29 Lacs from City Cooperative Bank Limited, against overdraft facility of Rs 46.07 Lacs. The said Bank has discontinued its operations, however the company has applied for repayment of fixed deposit after adjustment of the balance outstanding in the overdraft account.

2.1 Loans and Advances includes payment to parties (including associates) for acquiring land for development of real estate projects, either on collaboration basis or self- development basis, for bulk booking, and for purchase of commercial space

2.2 Particulars in respect of loans and advances to subsidiary companies:

(Amount in Rupees)

3-Contingent Liability

As at March 31, 2012 As at March 31, 2011

(a) Claims against the company not acknowledge as debt

1 Sales Tax & VAT 1,618,393.00 4,621,548.00

2 Income Tax 2,592,330.00 2,045,570.00

(b) Guarantees

1 Earnest Money 38,021,852.00 19,804,679.00

2 Bank Guarantee 89,144,250.00 89,644,250.00

4. Determination of revenues in respect of real estate projects under the 'Percentage of Completion method' necessarily involves making estimates by management for projected revenues, projected profits, and costs to completion and foreseeable loss. These estimates being of a technical nature have been relied upon by auditors.

5. Inventories, loans & advances , trade receivables and other current/non current assets are in the opinion of the management do not have a value on realization in the ordinary course of the business, less than the amount at which they are stated in the Balance Sheet. The classification of assets and liabilities between current and non current have been made based on management perception as to its recoverability/settlement and other criteria as set out in the revised schedule VI to the Companies Act 1956.

6. Balance in trade receivables, trade payables, current/non current advances given/received are subject to reconciliation and confirmation from respective Parties. The balance of said trade receivables, trade payables, current/non current advances given/received are taken as shown by the books of accounts. The ultimate outcome of such reconciliation and confirmation can not presently be determined, therefore no provision for any liability that may result of such reconciliation and confirmation has been made in the financial statement.

7. Segment Information

The Company's business segment is divided into real estate development and Construction Contract respectively. Operations of the Company do not qualify, for reporting as per reportable segment, under the criteria set out under "Accounting Standard (AS)-17 on Segment Reporting".

8. The Company has an investment of Rs.42,000.00 (31.03.2011 Rs.42,000.00) in Lucknow Cement Crafts Private Limited (LCC). There are accumulated losses in LCC. The management of the Company is of the opinion that investment in LCC is long term strategic investment therefore, provision for diminution in value of investment is not made.

9. RELATED PARTY DISCLOSURES:

Details of disclosure as required by "Accounting standard (AS) - 18 on Related Party Disclosures" are as under:-

A. Names of related parties and description of relationship:

1. Associates

1 M.A.K.Sales Private Limited

2 Omni Farms Private Limited

3 Awadh Technology Park and SEZ Private Limited

2. Entities over which key managerial personnel or their relatives exercise significant influence

1 S.K Garg Constructions Pvt. Ltd

2 Lucknow Cement Crafts Private Limited

3 Ecodel Projects Private Limited

4 Eldeco Infrastructure & Properties Limited

5 Surya Season Foods Private Limited

6 Eldeco Townships & Housing Limited

7 S.K.Garg (HUF)

3. Subsidiaries

1 Aadesh Constructions Private Limited

2 Garv Constructions Private Limited

3 Mahal Constructions Private Limited

4 Milaap Constructions Private Limited

5 Samarpit Constructions Private Limited

6 Suniyojit Constructions Private Limited

7 Halwasiya Agro Industries Limited

8 Prayatna Constructions Private Limited

9 Sushobhit Constructions Private Limited

10 Primacy Constructions Private Limited

11 Prasiddhi Constructions Private Limited

12 Perpetual Constructions Private Limited

13 Khwahish Constructions Private Limited

14 Fixity Constructions Private Limited

15 Facility Constructions Private Limited

16 Deepjyoti Constructions Private Limited

17 Conviction Constructions Private Limited*

18 Bliss Constructions Private Limited

19 Carnation Realtors Private Limited

20 Iris Realtors Private Limited

21 Neo Realtors Private Limited

22 Nepture Infracon Private Limited

23 Numerous Constructions Pvt Ltd

24 Shivaye Constructions Pvt Ltd.

25 Swarg Constructions Private Limited

26 Swarnim Nirman Private Limited

27 Villa Constructions Private Limited

*Note: Ceased to be subsidiary w.e.f 24.05.2011

4. Joint Venture Company

1 Eldeco City Private Limited

5 Key Management Personnel

1 Shri Shiv Kumar Garg Executive Chairman

2 Shri Pankaj Bajaj Managing Director

3 Shri Srikant Jajodia Whole Time Director

4 Shri Arvind Bajaj Non Executive Director

6 Relatives of Key Management Personnel

1 Asha Bajaj M/o Shri Pankaj Bajaj, Managing Director

2 Varija Bajaj S/o Shri Pankaj Bajaj, Managing Director

3 O.P.Bajaj F/o Shri Pankaj Bajaj, Managing Director

4 Rashi Bajaj W/o Shri Arvind Bajaj

5 Vimla Garg W/o Shri S.K.Garg

6 Brijendra Gupta Son in Law of Sri S.K.Garg

7 Rajeev Bansal Son in Law of Sri S.K.Garg

8 Manoj Singhal Son in Law of Sri S.K.Garg

9 A.K.Garg Brother of Sri S.K.Garg

10 Nirmal Garg Sister In law of Sri S.K.Garg

11 Pushpa Gupta Sister of Sri S.K.Garg

10 Employee Benefit

The details of the Company's post-retirement benefit plans for gratuity for its employees are given below which is certified by the actuary and relied upon by auditors:

Provision of Gratuity as per books is less than the liability provided by acturial, therefore provision for Gratuity is to be made on acturial basis.

B. Leave Encashment

Provision for leave encashment in respect of unavailed leaves standing to the credit of employees is made on accrual basis. The Company does not maintain any fund to pay for leave encashment.

Provision of leave encashment as per actuarial is less than the liability provided in books of accounts, therefore provision for leave encashment is to be made on accrual basis.

C. Provident Fund

The Company makes contribution to statutory provident fund in accordance with Employees Provident Fund and Misc. Provision Act, 1952.

This is post employment benefit and is in the nature of defined contribution plan.

11. During the year the Company was subjected to search under section 132 of the Income Tax Act, 1961. During the course of search, Income Tax authorities took custody of certain documents/records and recorded statements of certain officials of the Company. The tax officials are examining the records seized and statements recorded during the course of search. The Company has not received any communication or demand notice from the tax department in connection with the said search. Pending completion of search proceedings, tax liability if any, that may arise on this account, which is presently unascertainable, and will be recognized upon conclusion of search proceedings.

12. Interest in Joint Venture

The Company entered in to a 66.67:33.33 (being company share is 33.33%)Joint Venture in Eldeco City Private Limited (incorporated in India) with M/s Xander Investment Holding IV Limited (Mauritius) for development of the Real Estate Project in India. For the purposes of Company's share in assets, liabilities, income & expenses, proportionate consolidation method has been adopted. The Company's interest in the Joint Venture is reported as Non Current Investments (Note no. 12) of the Balance Sheet and stated at cost.

The Company's share of each of the assets, liabilities, income & expenses (each after elimination of, the effect of transactions between the Company and the Joint Venture) related to its interests in this joint venture based on un-audited results are given here under:

13. Till the year ended March 31st, 2011, the Company was using pre-revised Schedule VI to the Companies Act, 1956, for preparation and presentation of its financial statements. During the year ended March 31st, 2012, the revised Schedule VI notified under the Companies Act, 1956, has become applicable to the Company. The Company has re-grouped/re- classified previous year figures where necessary to conform with current year's classification.

14. All notes number 1-41 form an integral part of the financial statements.

---

Mar 31, 2010

1. Previous Years figures have been regrouped or rearranged wherever necessary to make them comparable.

2.Balance in various accounts included in sundry debtors, creditors and loans and advances are subject to confirmation from respective parties.

3. In the opinion of the management and to the best of their knowledge and belief the aggregate value of current assets including stocks, stores and loans and advances on realization in the ordinary course of business, will not be less than the amount at which these are stated in the Balance Sheet.

4. Determination of revenues in respect of real estate projects under the Percentage of Completion method necessarily involves making estimates by management for projected revenues, projected profits, and costs to completion and foreseeable loss. These estimates being of a technical nature have been relied upon by auditors.

5. Loans and Advances includes payment to parties (including associates) for acquiring land for development of real estate projects, either on collaboration basis or self- development basis, for bulk booking, and for purchase of commercial space.

6. Advance recoverable in cash or in kind include advances due from companies in which directors is a director or member.

7. EMPLOYEE BENEFIT

The Details of the Companys post retirement benefit plans for its employees are given below which is certified by the actuary and relied upon by the auditors.

B. Leave Encashment

Provision for leave encashment in respect of unavailed leaves standing to the credit of employees is made on actuarial basis. The Company does not maintain any fund to pay for leave encashment.

C. Provident Fund

The Company makes contribution to statutory provident fund in accordance with Employees Provident Fund and Misc. Provision Act, 1952. This is post employment benefit and is in the nature of defined contribution plan.

8. Principal of consolidation

The financial statements of the following subsidiaries have been consolidated as per the Accounting Standard 21 on Consolidated Financial Statements.

The financial statements of the following Joint Venture Entity have been consolidated as per the Accounting Standard 27 on Financial Reporting of interests in Joint Ventures.

9. Micro, Small Scale Business Entities

The Company has not received information from vendors regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosure relating to amounts unpaid as at the year end together with interest paid / payable under this Act has not been given.

10. SEGMENT REPORTING:

The Company has only one segment of real estate development and building construction and accordingly the disclosure requirements as prescribed in the "Accounting Standard (AS)-17 on Segment Reporting" are not applicable.

11 RELATED PARTY DISCLOSURES:

Details of disclosure as required by "Accounting standard (AS) -18 on Related Party Disclosures" are as under:

A. Names of related parties and description of relationship:

1. Associate

M.A.K. Sales Private Limited

2. Entities over which key managerial personnel or their relatives exercises significant influence

S.K Garg Constructions Pvt. Ltd (Previously known as Eldeco Constructions Private Limited)

Lucknow Cement Crafts Private Limited

Ecodel Projects Private Limited

Eldeco Infrastructure & Properties Limited

Surya Season Foods Private Limited

Eldeco Townships & Housing Limited

S.K.Garg (HUF)

3. Key Management Personnel

Shri Shiv Kumar Garg Executive Chairman

Shri Pankaj Bajaj Managing Director

ShriSrikantJajodia Whole Time Director

Shri Arvind Bajaj Non Executive Director

4. Relatives of Key Management Asha Baj aj

Personnel mother of Shri Pankaj Bajaj, Managing Director Varija Bajaj

sister of Shri Pankaj Bajaj, Managing Director O. P. Bajaj Father of Shri Pankaj Bajaj, Managing Director

12 CONTINGENT LIABILITIES:

Current Year Previous Year (31.03.2010) (31.03.2009) (Rs) (Rs.)

(i) Outstanding Bank Guarantees 10,40,35,750 6,72,85,000

(ii) Sales Tax Cases pending with Addl. Commissioner Appeals, Agra

For the F/Y 2004-2005 11,77,958 NIL

F/Y 2005-2006 996,576 NIL

F/Y2006-2007 9,88,184 NIL

(iii) Income Tax Cases pending with CIT(A),AgraforA.Y.2006-07&2007-08 20,45,570 6,96,903

(iv) Earnest Money 2,41,43,034 1,09,56,629



(v) Cases have been filed by some of the buyers for damages, quality differences, etc., which have been disputed by the Company. Pending disposal of these cases, liability, if any, could not be determined and hence provision thereof could not be made.

13. The Company has an investment of Rs.42,000.00 (31.03.2009 Rs.42,000.00) in Lucknow Cement Crafts Private Limited (LCC). There are accumulated losses in LCC. The management of the Company is of the opinion that investment in LCC is long term strategic investment therefore; provision for diminution in value of investment is not made.

14. Interest in Joint Venture

The Company entered into a 33.33:66.67 Joint Venture in Eldeco City Private Limited (incorporated in India) with M/s Xander Investment Holding IV Limited (Mauritius) for development of the Real Estate Project in India. For the purposes of Companys share in assets, liabilities, income & expenses, proportionate consolidation method has been adopted.

15. During the year Eldeco City Private Limited (the said company) become the joint venture entity of the company by virtue of substantial control over the affairs of the said company.

16. Cash and Bank Balances include fixed deposits amounting to Rs.100.00 lacs with City Co-operative Bank Ltd., against which the Company had availed an overdraft facility of Rs.50.00 lacs. The said Bank has discontinued its operations. The Company has however applied for repayment of the Fixed Deposit after adjustment of the balance outstanding in the overdraft account.

17. The schedules referred to in Balance Sheet and Profit & Loss Account form an integral part of the accounts.