Notes to Accounts of Garnet Construction Ltd.

Mar 31, 2024

m) Provisions and Contingent Liabilities:

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources.

When the Company expects some or all of a provision to be reimbursed, the same is recognised as a separate asset, but only when the reimbursement is virtually certain. The expense relating to a provision is presented in the Statement of Profit and Loss, net of any reimbursement. If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost.

A Contingent Liability is a possible obligation that arises from past events and the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of enterprise or a present obligation that arises from past events that may, but probably will not, require an outflow of resources.

Both provisions and contingent liabilities are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates. Contingent Liabilities are not recognized but are disclosed in the notes.

n) Earnings Per Share:

Basic earnings per share is calculated by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year. The weighted average number of equity shares outstanding during the year are adjusted retrospectively for events including a bonus issue, bonus element in right issue to existing shareholders, share split, and reverse share split (consolidation of shares).

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

average number of shares are computed based on a mean date in the quarter, as impact is immaterial on earning per share.

o) Cash and Cash Equivalent:

Cash and cash equivalent for the purpose of Cash Flow Statement comprise cash at bank and in hand and short term highly liquid investments which are subject to insignificant risk of changes in value.

USE OF JUDGEMENTS AND ESTIMATES

The preparation of financial statements in conformity with Ind AS requires management to make judgements, estimates and assumptions that affect the reported amounts of assets, liabilities, income, expenses and disclosures of contingent assets and liabilities at the reporting date. However, uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of the asset or liability affected in future periods.

Estimates and underlying assumptions are reviewed at each reporting date. Any revision to accounting estimates and assumptions are recognised prospectively i.e. recognised in the period in which the estimate is revised and future periods affected.

Revenue is recognised only when the Company can measure its progress towards complete satisfaction of the performance obligation. The measurement of progress is estimated by reference to the stage of the projects determined based on the proportion of costs incurred to date (excluding land cost) and the total estimated costs to complete (excluding land cost).

Level 1: Level 1 hierarchy includes financial instruments valued using market quoted prices. This includes listed equity instruments, traded bonds and mutual funds that have quoted price. The fair value of all equity instruments which are traded in the stock exchanges is valued using the closing price as at the reporting period. Mutual funds are valued using the closing NAV.

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities.

In respect of Financial Assets at amortised cost , the carrying value approximates fair value .

In respect of Financial Liabilities at amortised cost , the carrying value approximates fair value .

Financial Instruments : Financial Risk Management

The Company has exposure to the following risks arising from financial instruments:

• Credit risk ;

• Liquidity risk ; and

• Market risk

Risk management framework

The Company''s board of directors has overall responsibility for the establishment and oversight of the Company''s risk management framework. The board of directors has established the Risk Management Committee, which is responsible for developing and monitoring the Company''s risk management policies. The committee reports regularly to the board of directors on its activities.

The Company''s risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company''s activities. The Company, through its training and management standards and procedures, aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations.

i. Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company''s receivables from customers and investments in bank securities.

The carrying amount of the financial assets which represents the maximum credit exposure is as follows:

Trade and other receivables

The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer. However credit risk with regards to trade receivable is almost negligible in case of its residential sale and lease rental business as the same is done to the fact that in case of its residential sell business it does not handover possession till entire outstanding is received. Similarly in case of lease rental business, the Company keep 3 to 12 months rental as deposit from the occupants.

No impairment is observed on the carrying value of trade receivable.

Cash and cash equivalents

Credit risk from balances with banks and financial institutions is managed by the Company''s treasury department in accordance with the Company''s policy. Investments of surplus funds are made only with approved counterparties and within credit limits assigned to each counterparty. Counterparty credit limits are reviewed by the Investment committee comprising of Mr.

Sanjay Kedia (Chairperson), Mr. Arun Kedia ( Non-Independent Director), Mr. and Mr. Santosh Ginoria (Independent Directors) on an annual basis, and may be updated throughout the year subject to approval of the Investment Committee. The limits are set to minimise the concentration of risks and therefore mitigate financial loss through counterparty''s potential failure to make payments.

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''s 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, under both normal and stressed condition, without incurring unacceptable losses or risking damage to the Company''s reputation.

The Company''s objective is to maintain a balance between continuity of funding and flexibility through the use of surplus funds, bank overdrafts, bank loans, debentures and inter-corporate loans.

The Company assessed the concentration of risk with respect to refinancing its debt and concluded it to be low. The Company''s has access to a sufficient variety of sources of funding.

Exposure to liquidity risk

The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and undiscounted, and include estimated interest payments and exclude the impact of netting agreements.

iii. Market risk

Market risk is the risk that changes in market prices - such as foreign exchange rates, interest rates and equity prices - will affect the Company''s income or the value of its holdings of financial instruments. Market risk is attributable to all market risk sensitive financial instruments including foreign currency receivables and payables and long term debt. We are exposed to market risk primarily related to interest rate risk and the market value of certain commodities. Thus, our exposure to market risk is a function of investing and borrowing activities and revenue generating and operating activities. The objective of market risk management is to avoid excessive exposure in our revenues and costs.

Interest rate risk

Interest rate risk can be either fair value interest rate risk or cash flow interest rate risk. Fair value interest rate risk is the risk of changes in fair values of fixed interest bearing investments because of fluctuations in the interest rates. Cash flow interest rate risk is the risk that the future cash flows of floating interest bearing investments will fluctuate because of fluctuations in the interest rates.

Exposure to interest rate risk

The Company''s interest rate risk arises from borrowings. Borrowings issued at fixed rates exposes to fair value interest rate risk. The interest rate profile of the Company''s interest-bearing financial instruments as reported to the management of the Company is as follows:

E. Capital management

The Company''s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of the business. Management monitors the return on capital as well as the level of dividends to ordinary shareholders.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company includes within net debt, interest and non interest bearing loans and borrowings, less cash and cash equivalents, excluding discontinued operations.

* Interest and claims by customers/ suppliers may be payable as and when the outcome of the related matters are finally determined and hence not been included above. Management based on legal advice and historical trends, belives that no material liability will devolve on the company in respect of these matters.

It is not practicable for the Company to estimate the timings of cash outflows, if any, in respect of the pending resolution of the respective proceedings as it is determinable only on receipt of judgements/decisions pending with the various forums/authorities.

39 The Company has identified real estate as the only operating segment in terms of Ind AS 108 which is also reviewed by Board of Directors who are considered Chief Operating Decision Maker (CODM). Since the entire operations of the Company are in India, there are no geographical segments . There is no single customer to whom sales are in excess of 10% of the total revenue.

40- Leases

The lease expenses for cancellable and non-cancellable operating leases was Rs. Nill ( For the F.Y. 2022-23 Rs. 21,00,000/-) for the year ended 31st March, 2024.

There is no future minimum lease payments under non-cancellable operating lease.

41_- Other Statutory Information

^ The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

(ii) The Company does not have any transactions with companies struck off.

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

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

The Company has not advanced or loaned or invested funds to any other person(s) or

(_v) 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

The Company has not received any fund from any person(s) or entity(ies), including foreign

(vi) 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

42- Previous year figures have been regrouped, re-arranged and re-classified wherever necessary to conform to current year''s classification.

As per our attached report of even date For and on behalf of the Board of Directors

For M/s Shankarlal Jain & Associates LLP

Chartered Accountants Kishan Kumar Kedia

Firm Reg. No.109901W/W100082 Managing Director & Chief Financial Officer

Satish Jain Arun Kedia Sanjay Kumar Kedia

Partner Marketing Director Finance Director

M. No. 048874

Place : Mumbai Neha Verma

Date : 30th May, 2024 Company Secretary

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Mar 31, 2015

1. SHARE CAPITAL

a. Terms/rights attached to equity shares

The Company has only one class of Equity Share having value of Rs. 10 each with an entitlement of one vote per share.

In the event of company declares and pays dividends in Indian rupees, the dividend proposed by the Board of Directors are subject to the approval of the shareholders in the ensuing Annual General Meeting.

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

2. Borrowings

a SICOM Limited - Rs. 5 Gores

Secured by way of first charge on piece or parcel of land admeasuring 25340 square metres located at Village Honad, Taluka Raigad and 1,43,930 square metres located at Village Isambe, Taluka Khalapur. The rate of interest is Medium Term Reference Rate 2% p.a.

b SICOM Limited Rs. 9.995 Gores

Secured by way of hypothecation of receivables from the project - Magic Hills covering the entire loan amount The rate of interest is Medium Term Reference Rate 2% p.a.

c United Bank of India - Rs. 4.5 Gores

Secured by way of registered mortgage of 11 residential bun glows located at Magic Hills bearing plot no. 13,14,15,16 & 17 (part), Ambivali, Khalapur. The rate of interest is Base Rate 1.50% p.a.

d Union Bank of India - Rs. 1445 Gores

Secured by way of first charge on piece or parcel of land admeasuring 1,206,856 square feet located at Village Honad, Taluka Khalapur and hypothecation and escrow of the lease rent receivable. The rate of interest is Base Rate 3.25% p.a.

e India Infoline Finance Limited Rs. 1.52 Gores

Secured against premises situated at Laxmi Industrial Estate. The floating rate of interest is 16.50% p.a.

f Religare Finvest Limited -Rs. 13 Gores

Secured against registered mortgage of entire project of Garnet Paladium, Malad k Gross Proeject Receivables. The rate of interest is 18.00% p.a.

g Religare Finvest Limited Rs. 6 Gores

Secured against registered mortgage of project Magic Enclave, Taluka Khalapur k Gross Proeject Receivables. The rate of interest is 18.00% p.a.

h Kotak Mahindra Bank Ltd. -0.75 Gores

Secured by way of first charge on automobiles. The rate of interest is 18.00% p.a.

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

Particulars As at As at 31st March, 31st March, 2015 Rs. 2014 Rs.

Commitments Advance against Property 7,22,88,404 8,15,52,104

Total 7,22,88,404 8,15,52,104

4. Related Party Disclosure

List of Related Parties only with whom transactions are executed.

a) Key Management Personnel/Relative of Managerial Person

Kishan Kumar Kedia Chairman & Managing Director

Arun Kumar Kedia Marketing director

Sanjay Kumar Kedia Finance Director

Kusumdevi Kedia Relative of director

b) Subsidiary Company

Callista Realty Limited Subsidiary Company

c) Associate Concern

S.K.Investment

J.S.Realty Private Limited

Neelkant Industrial Estate

Panchsheel Industrial Estate Associate Concern

Aditya Industrial Estate

Panchdeep Industrial Estate

Kedia Industrial Development Corporation

5. The Company's normal operating cycle in respect of operations relating to under construction real estate projects may vary from project to project depending upon the size of the project, type of development, project complexities and related approvals. Operating cycle for all completed projects and other business is based on 12 months period. Assets and Liabilities have been classified into current and non-current based on the operating cycle of respective businesses.

6. The Company operates in Single Segment i.e. Real Estate Real Estate Development and therefore Segment Reporting as per AS-17' Segment Reporting is not applicable.

7. No provisions are made for liability of gratuity and leave encashment which are treated on cash basis in the accounts and amount for which is unascertained.

8. a. In the opinion of the management, any of the assets other than fixed assets and non- current investments have a value on realisation in the ordinary course of business atleast equal to the amount at which these are stated.

The accounts of certain Trade Receivables, Trade Payables, Loans and Advances and banks are, however, subject to confirmations or

b. reconciliations and consequent adjustments, if any. The management does not expect any material difference affecting the current year's financial statements on such reconciliation/ adjustments.

9. Previous year's figures have been regrouped / rearranged wherever necessary to conform to current year's classification.

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Mar 31, 2014

1A Trade Receivables include doubtful debts of Rs. 55,05,971 (Previous year Rs. 63,88,103) for which no provision has been made as the management is hopeful to recover the same

2 Borrowings

a SICOM Limited - Rs. 14 Crores

Secured by way of first charge on piece or parcel of land admeasuring 106,907.68 square metres located at Village Honad and 33,913.60 square metres located at Village Isambe, Taluka Khalapur and hypothecation and escrow of the lease rent receivable. The rate of interest is Medium Term Reference Rate 2% p.a.

b SICOM Limited - Rs. 20 Crores

Secured by way of first charge on piece or parcel of land admeasuring 53 acres located at Village Honad and 39 acres located at Village Isambe, Taluka Khalapur and hypothecation and escrow of identified cash flows of receivable of Project Magic Hills. The rate of interest is Medium Term Reference Rate 2% p.a.

c SICOM Limited - Rs. 15 Crores

Secured by way of first charge on piece or parcel of land admeasuring 53 acres located at Village Honad and 39 acres located at Village Isambe, Taluka Khalapur and hypothecation and escrow of identified cash flows of receivable of Project Magic Hills. The rate of interest is Medium Term Reference Rate 2% p.a.

d Union Bank of India - Rs. 14.45 Crores

Secured by way of first charge on piece or parcel of land admeasuring 1,206,856 square feet located at Village Honad, Taluka Khalapur and hypothecation and escrow of the lease rent receivable. The rate of interest isBase Rate 3.25% p.a.

e India Infoline Finance Limited - Rs. 3.5 Crores

Secured against premises situated at Laxmi Industrial Estate. The rate of interest is 18% p.a.

f Allahabad Bank (Overdraft Facility) - Rs. 5 Crores

Secured against plot at Village Dindoshi, Goregaon East and irrecoverable joint and several personal guarantees of two directors. The rate of interest is BPLR 1.5% p.a.

g United Bank of India (Overdraft Facility) - Rs. 3.25 Crores

Secured against premises situated at 11-B Lothse, Juhu. The rate of interest is Base Rate 5.5% p.a.

h Loans repayable on demand

The Company has taken a loan amounting to Rs. Nil (Previous Year Rs. 257,316) @ 15% from a director which are repayable on

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

Particulars As at As at 31st March, 2014 31st March, Rs. Rs.

Commitments Estimate amount of contract to be - 3,237,109 executed - Capital WIP

Advance against Property 81,552,104 84,833,405

Total 81,552,104 8,070,514

4 The Company''s normal operating cycle in respect of operations relating to under construction real estate projects may vary from project to project depending upon the size of the project, type of development, project complexities and related approvals. Operating cycle for all completed projects and other business is based on 12 months period. Assets and Liabilities have been classified into current and non- current based on the operating cycle of respective businesses.

5 The Company operates in Single Segment i.e. Real Estate Real Estate Development and therefore Segment Reporting as per AS-17 '' Segment Reporting'' is not applicable.

During the previous financial year due to unfavorable conditions, some of the parties to whom sales had been affected have failed to meet

6 their commitment. Therefore during the previous financial year certain sales agreement effected in 2008-09 & earlier year''s stands cancelled and sales return and reversal of profit thereon has been effected during the previous financial year.

7 No provisions are made for liability of gratuity and leave encashment which are treated on cash basis in the accounts and amount for which is unascertained.

8 Service tax payable on account of Notification No. 36/2010-ST dated 28/06/2010 valid w.e.f 01/07/2010 is collectable from customer who have purchased bunglow/office premises. Such amount payable is provided which will be discharged by the company under the Service Tax Voluntary Compliance Encouragement Scheme,2013 notified on 13/05/2013

9 VAT payable on account of sale of property applicable since 01/04/2010 on all sales enters into on or after the said date has been provided and paid to the authorities. The said amount would be recovered from the customers as and when the amount is recovered from the customer and final possession is handed over as per the relevant clause in the agreements with customers.

10 a.In the opinion of the management, any of the assets other than fixed assets and non- current investments have a value on realisation in the ordinary course of business atleast equal to the amount at which these are stated.

The accounts of certain Trade Receivables, Trade Payables, Loans and Advances and banks are, however, subject to confirmations or

b. reconciliations and consequent adjustments, if any. The management does not expect any material difference affecting the current year''s financial statements on such reconciliation/adjustments.

11 Previous year''s figures have been regrouped / rearranged wherever necessary to conform to current year''s classification.

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Mar 31, 2013

1 Borrowings

a SICOM Limited - Rs. 14 Crores

Secured by way of first charge on piece or parcel of land admeasuring 106,907.68 square metres located at Village Honad and 33,913.60 square metres located at Village lsambe, Taluka Khalapur and hypothecation and escrow of the lease rent receivable. The rate of interest is Medium Term Reference Rate 2% p.a.

b SICOM Limited-Rs. 25 Crores

Secured by way of first charge on piece or parcel of land admeasuring 53 acres located at Village Honad and 39 acres located at Village lsambe, Taluka Khalapur, hypothecation and escrow of identified cash flows of receivable of Project Magic Hills and irrecoverable joint and several personal guarantees of three directors. The rate of interest is Medium Term Reference Rate 2.75%p.a.

c SICOM Limited-Rs. 20 Crores

Secured by way of first charge on piece or parcel of land admeasuring 53 acres located at Village Honad and 39 acres located at Village lsambe, Taluka Khalapur and hypothecation and escrow of identified cash flows of receivable of Project Magic Hills. The rate of interest is Medium Term Reference Rate 2%p.a.

d India Info line Finance Limited - Rs. 3.5 Crores

Secured against premises situated at Laxmi Industrial Estate. The rate of interest is 18%p.a.

e Allahabad Bank (Overdraft Facility) - Rs. 5 Crores

Secured against plot at Village Dindoshi, Goregaon East and irrecoverable joint and several personal guarantees of two directors. The rate of interest is BPLR 1.5%p.a.

f United Bank of India (Overdraft Facility) - Rs. 3.25 Crores

Secured against premises situated at 11 -B Lothse, Juhu. The rate of interest is Base Rate 5.5% p.a.

g Loans repayable on demand

The Company has taken a loan amounting to Rs. Nil (Previous Year Rs. 257,316) @ 15% from a director which are repayable on demand.

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

Particulars As at As at 31st March, 2013 31st March, 2012 Rs. Rs.

Commitments

Estimate amount of contract to be executed

- Capital WIP 32,37,109 -

Advance against Property 8,48,33,405 3,31,67,295

Total! ..... 9,13,07,6231 3,31,67,295

Note: Related parties are identified by the company & relied upon by the auditor.

3. The Company''s normal operating cycle in respect of operations relating to under construction real estate projects may vary from project to project depending upon the size of the project, type of development, project complexities and related approvals. Operating cycle for all completed projects and other business is based on 12 months period. Assets and Liabilities have been classified into current and non-current based on the operating cycle of respective businesses.

4 The Company operates in Single Segment i.e. Real Estate /Real Estate Development and therefore, Segment Reporting as per AS-17 ''Segment Reporting'' is not applicable

5 During the previous financial year due to unfavorable conditions, some of the parties to whom sales has been affected have failed to meet their commitment Therefore during the previous financial year certain sales agreement effected in 2008-09 & earlier year''s stands cancelled and sales return and reversal of profit thereon has been effected during the previous financial year.

6 No provisions are made for liability of gratuity and leave encashment which are treated on cash basis in the accounts and amount for which is unascertained.

7 Service tax payable on account of Notification No. 36/2010-ST dated 28/06/2010 valid w.e.f. 01/07/2010 is collectable from customer who have purchased bun glow/office premises. Such amount payable is provided which will be discharged by the company under the Service Tax Voluntary Compliance Encouragement Scheme, 2013 notified on 13/05/2013

8 VAT payable on account of sales of property applicable since 01 /04/2010 on all sales enters into on or after the said date has been provided and paid to the authorities. The said amount would be recovered from the customers as and when the amount is recovered from the customer and final possession is handed over as per the relevant clause in the agreements with customers.

a) In the opinion of the management any of the assets other than fixed assets and non-current investment have a value on realization in the ordinary course of business at least equal to the amount at which these are stated.

b) The accounts of certain Trade Receivables. Trade Payables, Loans and Advances and banks are, however, subject to confirmations or reconciliations and consequent adjustments, if any The management does not expect any material difference affecting the current years financial statements on such reconciliation/adjustments

9 Previous year''s figures have been regrouped / rearranged wherever necessary to conform to current year''s classification.

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Mar 31, 2012

1 No provisions are made for liability of gratuity and leave encashment which are treated on cash basis in the accounts and amount for which is unascertained.

2 Service tax payable on account of Notification No. 36/2010-ST dated 28-6-2010 valid w.e.f 01/07/2010 is neither provided nor paid by the assessee since as per the relevant clause in the agreements with customers, the same would be recovered from the customers & paid to the authorities as and when the amount is recovered from the customer and final possession is handed over.

3 VAT payable on account of sale of Property applicable since 01/04/2010 on all sale agreements entered as on or after 01/04/2010 is neither provided for nor paid by the assessee as per the relevant clause in the agreements with customers, the same would be recovered from the customers & paid to the authorities as and when the amount is recovered from the customer and final possession Is handed over

4 Segment information under Accounting Standard-17 Segment Reporting is not applicable to the Company having only one segment of Properties Development.

5 Debtors Creditors and loans & advances are subject to confirmation and reconciliation. All the debtors are unsecured and considered good except those as notified in Note 14A.

Pursuing to Accounting Standard-22 issued by the Institute of Chartered Accountants of India, current tax is determined at the amount of tax payable in respect of estimated taxable income forthe year.

Deferred tax resulting from 'Timing Difference' between book profit and taxable profit for the year is accounted for, using the tax rates and laws that have been enacted as on the balance sheet date. During the year company has not recognized the deferred tax Assets following prudence concept.

6 Expenditure in Foreign Currency

Rs. 2,36,977/- (P.Y. 1,83,572/-) towards on Foreign Travel Expenses.

7 Contingent Liability

Capital Commitment yet to be executed amounting to Rs. 3,31,67,295/-(P.Y. Rs. 1,95,68,545/-)

8 Figures have been regrouped or rearranged wherever necessary forthe comparison purposes.

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Mar 31, 2010

1. No provisions are made for liability of gratuity and leave encashment which are treated on cash basis in the accounts and amount for which is unascertained.

2. cihaThe Car Loan from the HDFC Bank, ICICI Bank & Kotak Mahindra Bank Ltd is secured by the first

(ii) Term loan taken from Reliance Capital Ltd -1 is secured against mortgage of immovable properties of the company and personally guaranteed by theDirectors.

And Term loan taken from Reliance Capital Ltd - II is secured against Mortgage of Property owned by director and Personal guarantee by the director.

(iii) Secured against mortgage of Goregaon (Dindoshi) Property and personal guarantee of two of the directors.

3. During the year under review and as per the information and explanation provided by the management, the Company has Converted all the share warrants into 60,00,000 equity shares at a premium of Rs.68.

4. Segment information under Accounting Standard -17 segment reporting is not applicable to the company as the company having only one segment of Properties Development.

5. Sundry debtors include doubtful debts of Rs 11686634/-for which no provision has been made as the management is hopeful to recover the same.

6. Deferred Tax Liabilities pursuant to AS 22 is calculated as under

7. Debtors, Creditors and Loans & Advances are subject to Confirmation and reconciliation. All the Debtors are unsecured and considered good.

8. Expenditure in Foreign Currency: The Company has incurred an expenditure of Rs.47,266/- (P.Y,Rs3,44,443/-)towards Travelling & Lodging & Boarding Expenses on Foreign

9. Contingency Liabilities not provided- Income Tax demand 14,75,445 being disputed hence not provided. Company has given advance against the property to be purchased and further amount payable to the suppliers on completion of projects is Rs.31 12Crore. Companys banker has charged Rs. 33,666/- as charges for overdraft & Cheque bouncing charges which are disputed hence not provided.

10. Balance Sheet Abstract and Companys General Business Profile as required in terms of Part IV of Schedule VI of the Companies Act,1956 is attached here with.

11. Figures has been regrouped or rearranged wherever necessary for the compar is on purposes.