Notes to Accounts of Lancor Holdings Ltd.

Mar 31, 2025

1.24 Provisions, Contingent Liabilities and Contingent Assets

Provisions are recognized when the Company has a present (legal or constructive) obligation as a result of
past event, it is probable that the Company will be required to settle the present obligation, and reliable
estimate can be made of the amount of the obligation.

Provisions are measured at the present value of the management''s best estimate of the expenditure
required to settle the present obligation at the end of the reporting period. The discount rate used to
determine the present value is a current pre-tax rate. The increase in the provision due to passage of time
is recognised as interest expense.

Contingent liabilities are stated separately by way of a note. Contingent liabilities are disclosed when the
Company has a possible obligation arising from past events, unless the probability of outflow of resources
is remote or a present obligation arising from past events where no reliable estimate is possible and it is
not probable that the cash outflow will be required to settle the obligation. Contingent assets are neither
recognized nor disclosed except when inflow of economic benefits are probable.

1.25 Cash and Cash Equivalents

For the purpose of presentation in statement of cash flows, cash and cash equivalents include cash on
hand, deposits held at call with bank and financial institutions, other short term, highly liquid investments
with original maturities of three months or less that are readily convertible to known amounts of cash and
which are subject to an insignificant risk of changes in value and bank overdraft having positive balances.
Bank overdrafts are shown within borrowings in current liabilities in the balance sheet.

1.26 Cash Flow Statements

Cash flow statement are reported using the Indirect method, whereby net profit or loss is adjusted for
the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash
receipts or payments, and item of income or expense associated with investing or financing cash flows.

1.27 Segment Reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the Chief
Operating Decision Maker (CODM). The operating segments have been identified on the basis of nature of
products/service. The CODM is responsible for allocating resources and assessing the performance of the
operating segments of the Company.

*Deposit amounting to Rs. 75.00 lakhs (March 31, 2024 - Rs. 75.00 lakhs) held on account of guarantee given by the bank in
relation to a legal matter against the Company. (Refer Note No. 4.02(c))

*Deposit amounting to Rs. 388.40 lakhs (March 31, 2024 - Rs. 245.00) held as Security against borrowings from Banks /
Financial Institutions (Refer Note 2.20 (p) (q) (r) & 2.13)

*Deposit amounting to Rs. 11.12 lakhs (March 31, 2024 - Rs. 11.12 lakhs) held as Security for Corporate credit card availed by
the Company

Note: No amount is receivable from any directors or officers of the Company, severally or jointly with any other person, or
from firms where such director is a partner or from private companies where such director is a member

b. Rights, preference and restrictions attached to shares
Equity Shares

The company has only one class of equity shares having a par value of Rs.2 per share. Each holder of equity shares is entitled
to one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in
the ensuing annual general meeting, except in case of interim dividend.

In the event of liquidation of the Company, the holders 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.

Securities premium

Securities premium is the premium on issue of shares. The same is utilised in accordance with provisions of the
Companies Act 2013.

General Reserve

The Company had transferred a portion of the net profit of the Company before declaring dividend to the general
reserve pursuant to the earlier provisions of the Companies Act, 1956. Mandatory transfer to general reserve before
declaration of dividend is not required under the Companies Act, 2013

Retained Earnings

Retained earnings are the net profits, the Company has earned till date and is net of amount transferred to other
reserves such as general reserves, etc., amount distributed as dividend and adjustments in terms of Ind AS 101.

i. The Company has offered amounting to Rs. 6,000.00 lakhs through 6,000 Non - Convertible Debenture of
Rs. 1,00,000/- each @ 16% Interest per annum cash coupon, compounded monthly and payable quarterly by
Private Placement to Sundaram Alternative Opp Series - High Yield Secured Debt Fund II. The Debentures is
redeemable in 12 equal Quarterly installments post the Principal Moratorium period of 12 months from the
date of allotment of the debentures. The Loan is fully repaid by November, 2024.

ii. The Company has additionally offered amounting to Rs. 2,000.00 lakhs through 2,000 Non - Convertible
Debenture of Rs. 1,00,000/- each during June 2023 and Rs. 1,500 lakhs through 1,500 Non - Convertible
Debenture of Rs. 1,00,000/- each during January 2024 @ 16% Interest per annum cash coupon, compounded
monthly and payable quarterly by Private Placement to Sundaram Alternative Opp Series - High Yield Secured
Debt Fund II. The Debentures is redeemable in 12 equal Quarterly installments post the Principal Moratorium
period of 12 months from the date of allotment of the debentures.

a. The loan is secured by:

Exclusively first charge by way of mortgage of the following projects:

1) Project Infinys having land of 1.49 acres

2) Approved plots measuring 3,00,000 Sq.Ft in Harmonia Projects

3) 32 acres of free hold katcha land in Sriperumbadur

4) 1,239 sq.ft of undivided share of land and 2,570 sqf.t of super built up area pertaining to apartment no. 302
in Homeleigh Project

5) 4,236.59 sq.ft. of undivided share of land and 11,224 sq.ft of super built up area pertaining to apartment
nos. 101, 102, 201,301 & 501 in Hiranmayi Project.

6) 1,920 sq.ft of undivided share of land and 4,968 sq.ft of super built up area pertaining to apartment nos. 201
& 301 in RathiRupa project

b First charge by way of hypothecation on receivables of developer share of projects through escrow a/c &
Unattested Deeds of Hypothecation pertaining to the Receivables from the Additional Projects

c Personal guarantee of promoter

d The facility shall provide security of atleast two times of the facility outstanding and a cash flow escrow of
atleast two times the facility outstanding at all the times during the tenor of the facility

e Interest Service Reserve Account (ISRA) equivalent to 1 quarter coupon which shall be maintained as a Fixed
Deposit by the Company

i. The total loan sanctioned to the company is amounting to Rs. 2,500.00 lakhs. The tenure of the term loan
not exceeding 48 months including Principal Moratorium of 12 months, is repayable in equated quarterly
installments. Principal repayment has started from March 31,2023 and is repayable by December 31,2026

ii. The term loan from Sundaram Home Finance Limited is secured by: (a) Equitable Mortgage of the project land
in respect of their on-going residential project, "Lumina" situate at Nellikuppam Road, Guduvanchery, Pincode
- 603 202, comprised in Survey Nos. 11/1, 11/2, 11/3, 11/4, 11/5A, 13/1A, 13/1B1, 16/1A1, 16/2A1, 16/2B1,
17/1A1, 17/1A2, 17/1A3, 17/1B1, 17/1B2 and 29/5 in Kayarambedu Village, Chengalpet Taluk, Kancheepuram
District (b) Assignment / Hypothecation of receivables from the project "Lumina Project".

iii. Interest Service Reserve Account (ISRA) equivalent to 1 quarter coupon which shall be maintained as a Fixed
Deposit by the Company

i. The Company has offered amounting to Rs. 6,000.00 lakhs through 6,000 Non - Convertible Debenture of
Rs. 1,00,000/- each @ 16.50% Interest per annum cash coupon, compounded monthly and payable quarterly
by Private Placement to Sundaram Alternative Opp Series - Real Estate Secured Fund IV. The Debentures is
redeemable in 12 equal Quarterly installments post the Principal Moratorium period of 12 months from the
date of allotment of the debentures.

ii. The Company has additionally offered amounting to Rs. 2,500.00 lakhs through 2,500 Non - Convertible
Debenture of Rs. 1,00,000/- each during February, 2025 @ 16.50% Interest per annum cash coupon,
compounded monthly and payable quarterly by Private Placement to Sundaram Alternative Opp Series - Real
Estate Secured Fund IV. The Debentures is redeemable in 12 equal Quarterly installments post the Principal
Moratorium period of 12 months from the date of allotment of the debentures as Co-Terminus with series 1
NCD Investment.

a. The loan is secured by:

1) Mortgage of undivided share of land in Town & Country project

2) Mortgage of undivided share of land in Harmonia & Town & Country Projects

3) Mortgage of the Project Infinys

b. First charge by way of hypothecation on receivables of developer share of projects through escrow a/c &
Unattested Deeds of Hypothecation pertaining to the Receivables from the Additional Projects

c. Personal guarantee of promoter

d. The facility shall provide security of atleast two times of the facility outstanding and a cash flow escrow of
atleast two times the facility outstanding at all the times during the tenor of the facility

e. Interest Service Reserve Account (ISRA) equivalent to 1 quarter coupon which shall be maintained as a
Fixed Deposit by the Company

Pursuant to approval by the shareholders of the Company in Extraordinary General Meeting held on March 27,
2024, during the financial year, the Company has issued 1,22,45,560 number of equity shares on preferential basis
at Rs. 45.30 per share amounting to Rs. 5,547.24 Lakhs. In view of the same, for the purpose of ease of comparison,
EPS for earlier periods have also been recomputed considering weighted average number of equity shares.

On June 28, 2024, pursuant to approval by the shareholders of the Holding Company in Extraordinary General
Meeting held on March 27, 2024, the Nomination and Remuneration Committee of the Board of Directors of the
Group has approved the grant of 8,97,800 stock options convertible to 8,97,800 equity shares of Rs. 2/- each to eligible
employees of the Group under Lancor Holdings Limited Employee Stock Option Scheme 2024 at an exercise price of
Rs.2/- per option. Out of the approved stock options, 3,42,800 options have been renounced by the employees. The
balance options will vest in favour of the grantees over a period of 1 years from the date of grant i.e., June 28, 2024.

4.02 Contingent Liabilities

The Company''s pending litigations comprise of claims against the Company primarily by the customers and
proceedings pending with Income Tax / Service Tax / VAT and other government authorities. The Company has
reviewed all its pending litigations and proceedings and has adequately provided for where Provisions are required
and disclosed the contingent liabilities where applicable, in its financial statements. The Company does not expect
the outcome of these proceedings to have a materially adverse effect on its financial results.

a) In the matter of the Commercial Property, "Menon Eternity" owned by the Company, the arbitrator had issued an
award dated March 16, 2016, invalidating the sales deeds registered in favour of the Company having carrying
value of Rs. 2,834.00 Lakhs. The single bench of the Hon''ble High court of Madras by its judgement delivered on
December 23, 2016, set aside the Award of the Arbitrator, with regard to the invalidation of the Sale deeds and
confirmed the title in favour of the Company. Subsequently, the land owners had gone on appeal before the
division bench in the Hon''ble High Court of Madras and also the company had filed cross objections on certain
matters. The said appeal was decided by the Hon''ble High Court of Madras by restoring the award of the Arbitrator.

The Company has approached the Hon''ble Supreme Court of India by filing a special leave petition and has been
admitted and converted into Civil Appeal. As on the reporting date, the matter is pending for hearing.

b) In view of the premature termination of the lease by one of the Lessees in the Menon Eternity Building, a dispute
had arisen between the Company and the said lessee. Therefore, the Company had forfeited the Rental Deposit.
The lessee had demanded a refund of the rental deposit of Rs. 218.36 lakhs along with interest and damages. A
suit has been filed by the Lessee before the Hon''ble High Court of Madras. The said suit was decreed in favour of
the Lessee, by payment of an amount of Rs. 424.15 Lakhs along with interest. The Company has filed an appeal
before the Division Bench of the Hon''ble High Court of Madras and the same is pending.

c) In pursuance to the increased demand on premium FSI and OSR charges by the Chennai Metropolitan
Development Authority (CMDA) over and above the normal FSI charges paid by the Company as per the guideline
value prevailing at the time of filing the application with respect to one of the project, the Company has filed
a writ petition before the Hon''ble High Court of Madras. As per the interim direction of the Hon''ble court the
differential amount of Rs. 74.84 lakhs has been furnished by way of a bank guarrantee renewed periodically. The
said writ petition has been disposed off as prayed by the Company. The CMDA has filed an appeal against the
order and is pending before the division bench of the Hon''ble High Court of Madras. In view of the management
the increased demand is based on the revision in the gudieline value which was not prevailing at the time of
approval, accordingly the claims are not acknowledged as debt.

d) The service tax department has raised a demand of Rs. 156.10 lakhs towards penalty on Lancor GST Developements
Limited (merged with Lancor Holdings Limited with an appointed date, April 1, 2013) for wrong availment
of Cenvat Credit. The erstwhile holding Company of Lancor GST Developements Limited has undertaken to
reimburse to the Company to the extent of Rs. 39.03 lakhs in the event the Company is made liable to pay
the demand. The matter is pending before the Appellate Tribunal. The Company has been advised that these
proceedings are not likely to result into any liability as the Company had reversed it without utilising the same.

The sensitivity analysis have been determined based on reasonably possible changes of the respective assumptions
occurring at the end of the reporting period, while holding all other assumptions constant.

The sensitivity analysis presented above may not be representative of the actual change in the Defined benefit
obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the
assumptions may be correlated.

Furthermore, in presenting the above sensitivity analysis, the present value of the Defined benefit obligation has
been calculated using the projected unit credit method at the end of the reporting period, which is the same
method as applied in calculating the Defined benefit obligation as recognised in the balance sheet.

There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.
Characteristics of defined benefit plan

The Company has a defined benefit gratuity plan in India which is unfunded. The company''s defined benefit
gratuity plan is a final salary plan for employees. Gratuity is paid from company as and when it becomes due and is
paid as per company scheme for Gratuity.

Risks associated with defined benefit plan

Gratuity is a defined benefit plan and entity is exposed to the Following Risks:

Interest rate risk

A fall in the discount rate which is linked to the Government security rate will increase the present value of the
liability requiring higher provision.

Salary risk

The present value of the defined benefit plan liability is calculated by reference to the future salaries of members.
As such, an increase in the salary of the members more than assumed level will increase the plan''s liability.

Asset-liability Matching Risk

The plan faces the ALM risk as to the matching cash flow. Company has to manage pay-out based on pay as you
go basis from own funds.

Mortality risk

Since the benefits under the plan is not payable for life time and payable till retirement age only, plan does not
have any longevity risk.

During the year, there were no plan amendments, curtailments and settlements.

Defined contribution plans

The Company operated defined benefits contribution retirement benefit plans for all qualifying employees.

The total expenses recognised in the statement of profit & loss is Rs. 29.76 lakhs (March 31, 2024: Rs. 22.77 lakhs)
represents the contribution payable to these plans by the Company at the rates specified in the rules of the plan.

ii) Equity Settled Share Based Payments Employee Stock Option Plan

On June 28, 2024, pursuant to approval by the shareholders of the Company in Extraordinary General Meeting
held on March 27, 2024, the Nomination and Remuneration Committee of the Board of Directors of the Company
has approved the grant of 8,97,800 stock options convertible to 8,97,800 equity shares of Rs. 2/- each to eligible
employees of the Company under Lancor Holdings Limited Employee Stock Option Scheme 2024 at an exercise
price of Rs.2/- per option.

(i) Methods & assumption used to estimates the fair values

The fair values of the financial assets and liabilities are included at the amount at which the instrument could be

exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

The following methods and assumptions were used to estimate the fair values:

a) The carrying amounts of receivables and payables which are short term in nature such as trade receivables
including unbilled revenue, cash and cash equivalents, Bank Balances other than cash and cash equivalents,
other Current Financial Assets (like Security Deposits, interest accrued, loan to employees), Deposits with
Banks, trade payables, short term borrowings from Banks, Financial Institutions, Related Parties and Others,
Other Financial Liabilities (like Interest accrued Security & Rental Deposits, Refund due to Customers, and
other payables) are considered to be the same as their fair values.

b) The fair values for long term loans given to various parties, and remaining non current financial assets (like
Earnest Money paid to Landowners) were calculated based on cash flows discounted using a effective
interest lending rate. This is classified as level 3 fair values in the fair value hierarchy due to the inclusion of
unobservable inputs.

c) The fair values of non-current borrowings are based on discounted cash flows using a current borrowing
rate. They are classified as level 3 fair values in the fair value hierarchy due to the use of unobservable
inputs.

d) For financial assets and financial liabilities that are measured at fair value, the carrying amounts are equal
to the fair values.

(ii) Categories of financial instruments

The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments

by valuation technique:

Level 1: unadjusted quoted prices in active markets for identical assets or liabilities.

Level 2: directly or indirectly observable market inputs, other than Level 1 inputs; and

Level 3: inputs which are not based on observable market data

The Company''s financial risk management is an integral part of how to plan and execute its business strategies. The
Company''s financial risk management policy is set by the Board of Directors.

The Company activities expose it to financial risks namely credit risk, liquidity risk and market risk. The board of
directors of the Company has overall responsibility for the establishment and oversight of the Company''s risk
management. The below mentioned notes explains various sources of risk Company is exposed to & the manner in
which it manages such risk and its impact on the financial statements.

a) Credit Risk:

Credit risk arises from the possibility that counter party will cause financial loss to the Company by failing to
discharge its obligation as agreed. The Company''s exposure to credit risk arises mainly from the trade receivables
including unbilled revenue, loans provided to various parties, earnest money deposit paid to land owners and
other deposits including balances and deposits with the banks.

The Company is exposed to credit risk with respect to contract entered into with the customers for sale of residential
units. The Contract with customer includes milestone payment to be made by the customer. The possession of the
property is handed over to the customers only on collection of entire payment. Similarly, the handing over of the
property to the landowners where Company enters into agreement for joint development are also made only on
collection of earnest money deposit given earlier. Accordingly, the Company does not expect any expected credit
loss. During the financial year, the Company has not made any write-offs of trade receivables.

The trade receivables on account of maintenance income are typically un-secured and derived from services
provided to large number of independent customers. As the customer base is distributed economically there is no
concentration of credit risk. The credit period provided by the Company to its end use customers generally ranges
from 0 to 7 days.

The Company follows a simplified approach (i.e based on lifetime ECL) for recognition of impairment loss
allowance on Trade receivables. For the purpose of measuring the lifetime ECL allowance for trade receivables,
the Company uses a provision matrix which comprise a very large number of small balances grouped into
homogenous groups and assessed for impairment collectively. Individual trade receivables are written off when
management deems them not recoverable. Based on the industry practices and business environment in which
the Company operates, management considers that the trade receivables are in default if the payment are more
than 12 months past due.

Trade receivables consist of mainly customer balances relating to real estate and its allied activities with no
significant concentration of credit risk. The outstanding trade receivables are regularly monitored, and appropriate
action is taken for collection of overdue receivables.

b) Liquidity Risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting obligations associated with financial
liabilities that are settled by delivering cash or another financial asset. The Company liquidity risk management
policies includes, at all times to ensure sufficient liquidity to meet its liabilities when they are due, by maintaining
adequate sources of financing from banks at an optimised cost. In addition, processes and policies related to
such risks are overseen by senior management. The Company''s senior management monitors the Company''s net
liquidity position through rolling forecasts on the basis of expected cash flows. The Company takes into account
the liquidity of the market in which they operate.

Maturities of Financial Liabilities

The table below provides details regarding the remaining contractual maturities of financial liabilities at the
reporting date based on contractual undiscounted payments.

The Company has sufficient sanctioned line of credit from its bankers / other financiers; commensurate to its
business requirements. The Company reviews its line of credit available with bankers and other financiers from
time to time to ensure that at all point of time there is sufficient availability of line of credit.

The Company pays special attention to the net operating working capital invested in the business. In this regard
considerable work has been performed to control and reduce collection periods for trade receivables, as well as to
optimise accounts payable with the support of banking arrangements to mobilise funds.

c) Market Risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of
changes in market prices. Companies exposure in relation to market risk is primarily in relation to Interest rate risk.

Interest Risk

The Company has both floating & fixed rate borrowings which are carried at amortised cost. The fixed rate
borrowings are not subject to interest rate risk considering the future cash outflows will not fluctuate because of
any change. The variable interest rate borrowings are subject to interest rate risk. The interest rate risk is managed
by the Company by monitoring monthly cash flow which is reviewed by management to prevent loss.

4.20 Disclosure in relation to utilisation of borrowed funds

(a) No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any
other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign
entities ("Intermediaries") with the understanding, whether recorded in writing or otherwise, that the
Intermediary shall lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries).
The Company has not received any fund from any party(s) (Funding Party) with the understanding that the
Company shall whether, directly or indirectly lend or invest in other persons or entities identified by or on
behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the
Ultimate Beneficiaries.

(b) No funds have been received by the company from any person(s) or entity(ies), including foreign entities
("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the company shall,
whether, 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 provide any guarantee, security or the like on
behalf of the Ultimate Beneficiaries.

4.21 The Company migrated to a new accounting software with effect from April 1,2024, for maintaining its books
of account. The new accounting software has a feature of recording an audit trail (edit log), and the same was
enabled and operated throughout the financial year for all relevant transactions recorded in the software.
The audit trail functionality is available for changes made through the application interface; however, the
software does not have the feature to capture direct changes, if any, made at the database level. Except for
the periods of previous financial year where the audit trail feature was not enabled for accounting software
and its databases, the Company has preserved the audit trail in accordance with statutory record retention
requirements.

4.22 The Board of Directors of the Company at its meeting held on 1^st March, 2024 had approved a Scheme
of Merger of Lancor Maintenance and Services Limited, the wholly owned subsidiary, with the Company
pursuant to the sections 230 to 232 and other applicable provisions of Companies Act, 2013. The Company
filed a Application for Scheme of Amalgamation on 2^nd February, 2025 with National Company Law Tribunal
(NCLT). The appointed date of the Scheme is 1^st April, 2024 and it will come into force on the Effective Date,
i.e. the date of filing of NCLT''s order with the Registrar of Companies, Chennai.

4.23 The additional regulatory information detailed in clause 6L, of general instructions give in Part 1 of division II
of Schedule III to the Companies Act are furnished to the extent applicable to the Company

As per our report of even date attached

For G.M. Kapadia & Co. For and on behalf of Board of Directors

Chartered Accountants

Firms Registration No: 104767W

Satya Ranjan Dhall R V Shekar S. Sridharan

Partner Managing Director Director

Membership No. 214046 DIN: 00259129 DIN: 01773791

J.M. Chandrasekar K Prakash Kaushani Chatterjee

Chief Executive Officer Chief Financial Officer Company Secretary

Place: Chennai Place: Chennai Place: Chennai Place: Chennai

Date: 30^th May, 2025 Date: 30^th May, 2025 Date: 30^th May, 2025 Date: 30^th May, 2025

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Mar 31, 2024

1.24 Provisions, Contingent Liabilities and Contingent Assets

Provisions are recognized when the Company has a present (legal or constructive) obligation as a result of past event, it is probable that the Company will be required to settle the present obligation, and reliable estimate can be made of the amount of the obligation.

Provisions are measured at the present value of the management''s best estimate of the expenditure required to settle the present obligation at the end of the reporting period. The discount rate used to determine the present value is a current pre-tax rate. The increase in the provision due to passage of time is recognised as interest expense.

Contingent liabilities are stated separately by way of a note. Contingent liabilities are disclosed when the Company has a possible obligation arising from past events, unless the probability of outflow of resources is remote or a present obligation arising from past events where no reliable estimate is possible and it is not probable that the cash outflow will be required to settle the obligation. Contingent assets are neither recognized nor disclosed except when inflow of economic benefits are probable.

1.25 Cash and Cash Equivalents

For the purpose of presentation in statement of cash flows, cash and cash equivalents include cash on hand, deposits held at call with bank and financial institutions, other short term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value and bank overdraft having positive balances. Bank overdrafts are shown within borrowings in current liabilities in the balance sheet.

1.26 Cash Flow Statements

Cash flow statement are reported using the Indirect method, whereby net profit or loss is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments, and item of income or expense associated with investing or financing cash flows.

1.27 Segment Reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the ChiefOperating Decision Maker(CODM).The operating segments have been identified on the basis ofnature of products/service.The CODM is responsible forallocating resources and assessingtheperformance ofthe operating segments of the Company.

Fair value hierarchy and valuation technique

Considering valuation has not been carried out for the commercial properties having written down value of Rs. 2,991.63 lakhs (Gross cost Rs. 3,729.62 lakhs) by a registered valuer, no value has been disclosed. This includes commercial properties having written down value of Rs. 2.908.35 lakhs (Gross Cost Rs. 3.626.02 lakhs) for which fair value could not be measured as the said property is under dispute. Refer Note 4.02 (a)

*Capital advance paid for purchase of property held as security for borrowings from banks (refer note no. 2.20)

# Borrowing costs capitalised for the year ended March 31, 2024 for Rs.16.54 lakhs (March 31,2023 - Rs. 23.53 lakhs) Refer Note no. 4.13 for details

^APursuant to the Order of the Presiding Officer, DRT-II, Delhi, setting aside of the Sale Certificate issued in favour of the Company, in respect of the 1^st Floor Office Space at VTN Square, T Nagar, Chennai, the Company has filed an appeal before the DRAT, Delhi, which has been transferred to DRAT, Mumbai. The DRAT, Mumbai has set-aside the order of the Presiding Officer. Thus, the Sale Certificate issued in favour of the Company has been confimed, which has resulted in the company becoming the absolute owner of the said Office Space.

b. Rights, preference and restrictions attached to shares Equity Shares

The company has only one class of equity shares having a par value of Rs.2 per share. Each holder of equity shares is entitled to one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing annual general meeting, except in case of interim dividend.

In the event of liquidation of the Company, the holders 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.

General Reserve

The Company had transferred a portion of the net profit of the Company before declaring dividend to the general reserve pursuant to the earlier provisions of the Companies Act, 1956. Mandatory transfer to general reserve before declaration of dividend is not required under the Companies Act, 2013

Retained Earnings

Retained earnings are the net profits , the Company has earned till date and is net of amount transferred to other reserves such as general reserves, etc., amount distributed as dividend and adjustments in terms of Ind AS 101.

i. The total loan sanctioned to the company is amounting to Rs. 7,000.00 lakhs. The term loan is repayable in 18 installments of Rs. 350.00 lakhs, 2 installments of Rs. 250.00 lakhs and last installment of Rs. 200.00 lakhs commencing after moratorium period of 21 months from the date of disbursement. As per revised rescheduled letter dt December 20, 2021, the terms of repayment has been revised and repayment starts from September 01,2023.

ii. The term loan from LIC Housing Finance Limited is secured by: (a) Equitable Mortgage of the project land of 3.575 acres located in Model school road, off OMR, Sholingnallur including construction thereon and excluding land and saleable area already conveyed; (b) Assignment / Hypothecation of receivables from the project "TCP Altura"; (c) Personal Guarantee of Promoter, Mr R.V. Shekhar

i. The Company has offered amounting to Rs. 6,000.00 lakhs through 6,000 Non - Convertible Debenture of Rs. 1,00,000/- each @ 16% Interest per annum cash coupon, compounded monthly and payable quarterly by Private Placement to Sundaram Alternative Opp Series - High Yield Secured Debt Fund II. The Debentures is redeemable in 12 equal Quarterly installments post the Principal Moratorium period of 12 months from the date of allotment of the debentures.

ii. The Company has additionally offered amounting to Rs. 2,000.00 lakhs through 2,000 Non - Convertible Debenture of Rs. 1,00,000/- each during June 2023 and Rs. 1,500 lakhs through 1,500 Non - Convertible Debenture of Rs. 1,00,000/- each during January 2024 @ 16% Interest per annum cash coupon, compounded monthly and payable quarterly by Private Placement to Sundaram Alternative Opp Series - High Yield Secured Debt Fund II. The Debentures is redeemable in 12 equal Quarterly installments post the Principal Moratorium period of 12 months from the date of allotment of the debentures.

a. The loan is secured by:

Exclusively first charge by way of mortgage of the following projects:

1) Project Infinys having land of 1.49 acres

2) Approved plots measuring 3,00,000 Sq.Ft in Harmonia Projects

3) 32 acres of free hold katcha land in Sriperumbadur

4) 1,239 sq.ft of undivided share of land and 2,570 sqf.t of super built up area pertaining to apartment no.

302 in Homeleigh Project

c) Borrowings secured against current assets

The company has borrowings from banks / financial institutions on the basis of security of current assets. As per the sanction letter or renewal of sanction letter, the company is required to submit the quarterly returns or statement of current asset. Such statement or return is submitted with the banks / Financial Institutions, which are in agreement with the books of accounts.

The Company''s pending litigations comprise of claims against the Company primarily by the customers and proceedings pending with Income Tax / Service Tax / VAT and other government authorities. The Company has reviewed all its pending litigations and proceedings and has adequately provided for where Provisions are required and disclosed the contingent liabilities where applicable, in its financial statements. The Company does not expect the outcome of these proceedings to have a materially adverse effect on its financial results.

a) In the matter of the Commercial Property, "Menon Eternity" owned by the Company, the arbitrator had issued an award dated March 16, 2016, invalidating the sales deeds registered in favour of the Company having carrying value of Rs.2,908.35 Lakhs. The single bench of the Hon''ble High court of Madras by its judgement delivered on December 23, 2016, set aside the Award of the Arbitrator, with regard to the invalidation of the Sale deeds and confirmed the title in favour of the Company. Subsequently, the land owners had gone on appeal before the division bench in the Hon''ble High Court of Madras and also the company had filed cross objections on certain matters. The said appeal was decided by the Hon''ble High Court of Madras by restoring the award of the Arbitrator. The Company has approached the Hon''ble Supreme Court of India by filing a special leave petition and the court proceedings are in progress. As on the reporting date, the matter is listed for hearing in the month of August 2024.

b) In view of the premature termination of the lease by one of the Lessees in the Menon Eternity Building, a dispute had arisen between the Company and the said lessee. Therefore, the Company had forfeited the Rental Deposit. The lessee had demanded a refund of the rental deposit of Rs. 218.36 lakhs along with interest and damages. A suit has been filed by the Lessee before the Hon''ble High Court of Madras. The said suit was decreed in favour of the Lessee, by payment of an amount of Rs. 424.15 Lakhs along with interest. The Company has filed an appeal before the Division Bench of the Hon''ble High Court of Madras and the same is pending.

c) In pursuance to the increased demand on premium FSI and OSR charges by the Chennai Metropolitan Development Authority (CMDA) over and above the normal FSI charges paid by the Company as per the guideline value prevailing at the time of filing the application with respect to one of the project, the Company has filed a writ petition before the Hon''ble High Court of Madras. As per the interim direction of the Hon''ble court the differential amount of Rs. 74.84 lakhs has been furnished by way of a bank guarrantee renewed periodically. The

said writ petition has been disposed off as prayed by the Company. The CMDA has filed an appeal against the order and is pending before the division bench of the Hon''ble High Court of Madras. In view of the management the increased demand is based on the revision in the gudieline value which was not prevailing at the time of approval, accordingly the claims are not acknowledged as debt.

d) The service tax department has raised a demand of Rs. 156.10 lakhs towards penalty on Lancor GST Developements Limited (merged with Lancor Holdings Limited with an appointed date, April 1,2013) for wrong availment of Cenvat Credit. The erstwhile holding Company of Lancor GST Developements Limited has undertaken to reimburse to the Company to the extent of Rs. 39.03 lakhs in the event the Company is made liable to pay the demand. The matter is pending before the Appellate Tribunal. The Company has been advised that these proceedings are not likely to result into any liability as the Company had reversed it without utilising the same.

e) The service tax department has raised a demand of Rs. 223.70 lakhs along with interest and penalty for the period February 2009 to June 2010. The Company has paid the demanded amount except for interest and penalty and it has filed an appeal before the Customs Excise and Service Tax Appellate Tribunal dated May 10, 2012 stating that amount received from the customers are not chargeable to service tax prior to July 1,2010 under various grounds. The Company had received the order of the Customs Excise, Service Tax Appellate Tribunal dated October 11, 2018 based on which refund order dated June 07, 2019 was issued by the department, and the Company received a refund amount of Rs. 182.01 lakhs. Against the Order of the CESTAT and the Refund Order, The Commissioner of Service tax, Chennai has preferred an appeal before the Civil Appellate Jurisdiction of Supreme Court of India and the matter is pending.

f) The Company approached the Honourable High Court of Madras to seek protection from the cancellation of the Joint Development Agreement (JDAs) and Power of Attorney (POAs) by the landowners in respect of the development of "Town & Country" and ''Harmonia" projects at Sriperumbudur . In July 2022, the Honourable High Court of Madras has passed an order to stay the cancellation of Joint Development Agreement (JDAs) and Powers of Attorney (POAs) and the Court has also ordered stay of the construction until the Arbitration proceedings are completed. The Arbitration Proceedings are underway.

The Company has a defined benefit gratuity plan in India which is unfunded. The company''s defined benefit gratuity plan is a final salary plan for employees. Gratuity is paid from company as and when it becomes due and is paid as per company scheme for Gratuity.

Gratuity is a defined benefit plan and entity is exposed to the Following Risks:

Interest rate risk

A fall in the discount rate which is linked to the Government security rate will increase the present value of the liability requiring higher provision.

Salary risk

The present value of the defined benefit plan liability is calculated by reference to the future salaries of members. As such, an increase in the salary of the members more than assumed level will increase the plan''s liability.

Asset-liability Matching Risk

The plan faces the ALM risk as to the matching cash flow. Company has to manage pay-out based on pay as you go basis from own funds.

Mortality risk

Since the benefits under the plan is not payable for life time and payable till retirement age only, plan does not have any longevity risk.

During the year, there were no plan amendments, curtailments and settlements.

Defined contribution plans

The Company operated defined benefits contribution retirement benefit plans for all qualifying employees.

The total expenses recognised in the statement of profit & loss is Rs. 22.77 lakhs (March 31, 2023: Rs. 21.90 lakhs) represents the contribution payable to these plans by the Company at the rates specified in the rules of the plan.

4.05 Disclosures as required by Ind AS 108 Operating segments

As the Company''s business activity falls within a single business segment in terms of Ind AS 108 on "Operating Segments", the financial statement are reflective of information required by Ind AS 108.

4.06 Leases

I) Company as Lessee

The lease payments in relation to short term leases having lease term less than 12 months amounting to Rs. 46.67 lakhs (March 31,2023: Rs. 6.70 lakhs) accounted under the statement of Profit and loss. (Refer note 3.08)

II) Company as Lessor

The Company had entered into commercial property leases on its constructed premises. Rental income credited to statement of profit & loss is Rs.2.86 lakhs (March 31,2023: 2.26 lakhs).

The Company''s objective while managing capital is to maintain stable capital structure to support business stability and growth, ensure adherence to the covenants and restrictions imposed by lenders and / or relevant laws and regulations, and maintain an optimal and efficient capital structure so as to reduce the cost of capital that would enable to maximise the return to stakeholders.

(i) Methods & assumption used to estimates the fair values

The fair values of the financial assets and liabilities are included at the amount at which the instrument could be

exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

The following methods and assumptions were used to estimate the fair values:

a) The carrying amounts of receivables and payables which are short term in nature such as trade receivables including unbilled revenue, cash and cash equivalents, Bank Balances other than cash and cash equivalents, other Current Financial Assets (like Security Deposits, interest accrued, loan to employees), Deposits with Banks, trade payables, short term borrowings from Banks and Financial Institutions, Other Financial Liabilities (like Interest accrued Security & Rental Deposits, Refund due to Customers, and other payables) are considered to be the same as their fair values.

b) The fair values for long term loans given to various parties, and remaining non current financial assets (like Security Deposits, Earnest Money paid to Landowners) were calculated based on cash flows discounted using a effective interest lending rate. This is classified as level 3 fair values in the fair value hierarchy due to the inclusion of unobservable inputs.

c) The fair values of non-current borrowings are based on discounted cash flows using a current borrowing rate. They are classified as level 3 fair values in the fair value hierarchy due to the use of unobservable inputs.

d) For financial assets and financial liabilities that are measured at fair value, the carrying amounts are equal to the fair values.

(ii) Categories of financial instruments

The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments

by valuation technique:

Level 1: unadjusted quoted prices in active markets for identical assets or liabilities.

Level 2: directly or indirectly observable market inputs, other than Level 1 inputs; and

Level 3: inputs which are not based on observable market data

The Company''s financial risk management is an integral part of how to plan and execute its business strategies. The Company''s financial risk management policy is set by the Board of Directors.

The Company activities expose it to financial risks namely credit risk, liquidity risk and market risk. The board of directors of the Company has overall responsibility for the establishment and oversight of the Company''s risk management. The below mentioned notes explains various sources of risk Company is exposed to & the manner in which it manages such risk and its impact on the financial statements.

a) Credit Risk:

Credit risk arises from the possibility that counter party will cause financial loss to the Company by failing to discharge its obligation as agreed. The Company''s exposure to credit risk arises mainly from the trade receivables including unbilled revenue, loans provided to various parties, earnest money deposit paid to land owners and other deposits including balances and deposits with the banks.

The Company is exposed to credit risk with respect to contract entered into with the customers for sale of residential units. The Contract with customer includes milestone payment to be made by the customer. The possession of the property is handed over to the customers only on collection of entire payment. Similarly, the handing over of the property to the landowners where Company enters into agreement for joint development are also made only on collection of earnest money deposit given earlier. Accordingly, the Company does not expect any expected credit loss. During the financial year, the Company has not made any write-offs of trade receivables.

The trade receivables on account of maintenance income are typically un-secured and derived from services provided to large number of independent customers. As the customer base is distributed economically there is no concentration of credit risk. The credit period provided by the Company to its end use customers generally ranges from 0 to 7 days.

The Company follows a simplified approach (i.e based on lifetime ECL) for recognition of impairment loss allowance on Trade receivables. For the purpose of measuring the lifetime ECL allowance for trade receivables, the Company uses a provision matrix which comprise a very large number of small balances grouped into homogenous groups and assessed for impairment collectively. Individual trade receivables are written off when management deems them not recoverable. Based on the industry practices and business environment in which the Company operates, management considers that the trade receivables are in default if the payment are more than 12 months past due.

Trade receivables consist of mainly customer balances relating to real estate and its allied activities with no significant concentration of credit risk. The outstanding trade receivables are regularly monitored, and appropriate action is taken for collection of overdue receivables.

b) Liquidity Risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash or another financial asset. The Company liquidity risk management policies include to, at all times ensure sufficient liquidity to meet its liabilities when they are due, by maintaining adequate sources of financing from banks at an optimised cost. In addition, processes and policies related to such risks are overseen by senior management. The Company''s senior management monitors the Company''s net liquidity position through rolling forecasts on the basis of expected cash flows. The Company takes into account the liquidity of the market in which they operate.

Maturities of Financial Liabilities

The table below provides details regarding the remaining contractual maturities of financial liabilities at the reporting date based on contractual undiscounted payments.

Financing arrangements

The Company has sufficient sanctioned line of credit from its bankers / financiers; commensurate to its business requirements. The Company reviews its line of credit available with bankers and lenders from time to time to ensure that at all point of time there is sufficient availability of line of credit.

The Company pays special attention to the net operating working capital invested in the business. In this regard considerable work has been performed to control and reduce collection periods for trade receivables, as well as to optimise accounts payable with the support of banking arrangements to mobilise funds.

c) Market Risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Companies exposure in relation to market risk is primarily in relation to Interest rate risk.

Interest Risk

The Company has both floating & fixed rate borrowings which are carried at amortised cost. The fixed rate borrowings are not subject to interest rate risk considering the future cash outflows will not fluctuate because of any change. The variable interest rate borrowings are subject to interest rate risk. The interest rate risk is managed by the Company by monitoring monthly cash flow which is reviewed by management to prevent loss.

4.20 Disclosure in relation to utilisation of borrowed funds

(a) No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities ("Intermediaries") with the understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries). The Company has not received any fund from any party(s) (Funding Party) with the understanding that the Company shall whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(b) No funds have been received by the company from any person(s) or entity(ies), including foreign entities ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the company shall, whether, 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 provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

4.21 The provisions of the Companies Act, 2013 and rules made thereunder requires that the Company uses only such accounting software for maintaining its books of account which has a feature of recording audit trail for each and every transaction, creating an edit log of each change made in books of account along with the date when such changes were made and ensuring that the audit trail cannot be disabled or tampered with effect from April 1,2023. During the current year i.e., upto March 31,2024, the accounting software for maintaining its Books of Accounts does not have the feature of Audit trail (edit log) facility. However, the Company is in the process of implementing an accounting software where the said accounting software will address the compliance with respect to accounting software having feature of recording the audit trail (edit log) facility.

4.22 The additional regulatory information detailed in clause 6L, of general instructions give in Part 1 of division II of Schedule III to the Companies Act are furnished to the extent applicable to the Company

As per our report of even date attached

For G.M. Kapadia & Co. For and on behalf of Board of Directors

Chartered Accountants

Firms Registration No: 104767W

Satya Ranjan Dhall R V Shekar S. Sridharan

Partner Managing Director Director

Membership No. 214046 DIN: 00259129 DIN: 01773791

J.M. Chandrasekar K Prakash Kaushani Chatterjee

Chief Executive Officer Chief Financial Officer Company Secretary

Place: Chennai Place: Chennai Place: Chennai Place: Chennai

Date: 23^rd May, 2024 Date: 23^rd May, 2024 Date: 23^rd May, 2024 Date: 23^rd May, 2024

---

Mar 31, 2018

1.01 Corporate information

Lancor Holdings Limited (the Company) is a public Company domiciled in India and incorporated under the provisions of the Compnies Act, 1956. It''s equity share are listed in the BSE Ltd (Bombay Stock Exchange) in India. The Company is engaged in the business of real estate development and leasing of commercial properties.

1.02 Authorization of standalone financial statements

The standalone financial statements were authorized for issue in accordance with a resolution of the directors on May 14, 2018.

* Restriction in title of the property

* Investment properties has been pledged as security for borrowings, refer note no 2.18 and 2.23 for details.

Capitalised borrowing cost

The borrowing cost capitalised during the year ended 31st March 2018 was Nil; (31st March 2017: Nil and 1st April 2016 : Rs. 523.30 lakhs )

Fair value hierarchy and valuation technique

a) The fair valuation of one of the property "Menon eternity" investment property has been determined by an independent valuer, who holds a recognised and professional qualification, and has recent experience in the location & category of the investment being valued. The said property is under litigation and the matter is pending at the Honorable High court of Madras. (Refer note no. 4.02(a))

b) For other investment properties the comparable market price or selling price wherever properties have been sold during the reporting period has been considered for the determination of the fair value.

* All the investments in equity shares of subsidiaries are measured as per Ind AS 27 ''Separate Financial Statements''.

** As per the deed of partnership, the Classic Farms (Chennai) Limited and Lancor Maintenance & Services Limited had guaranteed profits in the projects "The Central Park West" and "The Central Park South". Apart from the said two projects, the partners other than Lancor Holdings Limited (the Company) do not have any interest in the profits/loss of the entity.

^A During the year ended 31st March 2018; the company has capitalised borrowing cost to the extent of Rs 1693.01 lakhs (31st March 2017: Rs 1141.53 lakhs and 1st April 2016: Rs 1414.65 lakhs ) to the cost of real estate project under development inventories have been pledged as security for borrowings, refer note no 2.18 for details

Note: No amount is receivable from any directors or officers of the Company, severally or jointly with any other person, or from firms where such director is a partner or from private companies where such director is a member

* The receivables have been pledged as security for borrowings, refer note no 2.18 for details

b. Rights, preference and restrictions attached to shares Equity Shares

The company has only one class of equity shares having a par value of Rs.2 per share. Each holder of equity shares is entitled to one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing annual general meeting, except in case of interim dividend.

In the event of liquidation of the Company, the holders 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.

Nature and purpose of reserves Securities premium reserve

Securities premium reserve is used to record the premium on issue of shares. The reserve will be utilised in accordance with provisions of the Act. Revaluation Reserve

Revaluation Reserve is created on account of revaluation of the Investment Property.

General Reserve

The Company has transferred a portion of the net profit of the Company before declaring dividend to general reserves.

Retained Earnings

Retained earnings are the profits, the Company has earned till date.

i. The total amount of loan sanctioned to the Company is amounting to Rs. 800 lakhs. The loan is repayable with current EMI of Rs,22.12 lakhs(with 6% increase in monthly instalments). The repayment schedule is based on monthly rental from BNP Paribas & Sun Edison in respect of Menon Eternity Building at 165, St. Mary''s Road, Alwarpet, Chennai. The tenure of the loan is 55 months effective

ii. Term Loan I from Catholic Syrian Bank Limited is secured by 1) "Westminster" a commercial building, situated at No. 108/22, Dr Radhakrishnan Salai, Mylapore, Chennai 4 2nd & 8th floors of the building measuring 7,977.5 sq. ft of built-up area. 2) "Menon Eternity" a commercial building, situated at No. 165, St Mary''s Road, RA Puram, Chennai 28 - 2nd, 3rd, 4th, 5th floors and a part of 10th floor measuring 93,051 sq. ft of built up area. 3) Land measuring 10.99 acres at Sriperumbudur owned by the Company.

i. The total amount of loan sanctioned to the Company is amounting to Rs. 3,450 lakhs.The tenure of the loan is 60 months effective April, 2015.

ii. The Term loan II from Catholic Syrian Bank Limited is secured by

1) "Westminster" a commercial building, situated at No. 108/22, Dr Radhakrishnan Salai, Mylapore, Chennai 4 2nd & 8th floors of the building measuring 7,977.5 sq. ft of built-up area. 2) "Menon Eternity" a commercial building, situated at No. 165, St Mary''s Road, RA Puram, Chennai 28 - 2nd, 3rd, 4th, 5th floors and a part of 10th floor measuring 93,051 sq. ft of built up area. 3) Land measuring 5.98 acres at Sriperumbudur owned by the Company

i. The total amount of loan sanctioned to the Company is amounting to Rs. 3450 lakhs. The tenure of the loan is 60 months effective April, 2015.

ii. Term Loan III from Catholic Syrian Bank Limited is secured by 1) "Westminster" a commercial building, situated at No. 108/22, Dr Radhakrishnan Salai, Mylapore, Chennai 4 ''- 2nd & 8th floors of the building measuring 7,977.5 sq. ft of built-up area. 2) "Menon Eternity" a commercial building, situated at No. 165, St Mary''s Road, RA Puram, Chennai 28 - 2nd, 3rd, 4th, 5th floors and a part of 10th floor measuring 93,051 sq. ft of built up area. 3) Land measuring 5.98 acres at Sriperumbudur owned by Lancor Holdings Limited.

i. The total amount of loan sanctioned to the Company was amounting to Rs. 10 crore. The Loan is repaid during the year.

ii. Term loan I from City Union Bank Limited is secured by mortgage of 1) commercial property having a built up area of 6,122 sqft on the IV Floor at "CITI TOWER" building owned by the company 2) commercial building having a built up area of 5,122 sqft on II Floor at "VTN Square" building owned by the company.

i. The total amount of loan sanctioned to the Company was amounting to Rs. 1350 lakhs. The loan is repayable in 120 equal monthly installments at Rs.20.1y6 lakhs from September 2015.

ii. As on March 31, 2018

Term loan II from City Union Bank Limited is secured by mortgage of 1) commercial building having a built up area of 5,122 sqft on II Floor at "VTN Square" building owned by the company. 2) All that piece and parcel of Non residential super structures (Elcot Avenue , Lancor sports & Recreation centre) of a built up area of 20,572 sq.ft inclusive of common areas together with 9,583 sq.ft of undivided share of land out of the total extent of 1,59,423 sq.ft situated in "The Central Park South" in Sholinganallur village, Tambaram Taluk, Kancheepuram district.

As on March 31, 2017

Term loan II from City Union Bank Limited is secured by mortgage of 1) commercial building having a built up area of 5,122 sqft on II Floor at "VTN Square" building owned by the company. 2) commercial property having a built up area of 6,122 sqft on the IV floor at "CITI TOWER" building owned by the company

As on April 1, 2016

Term loan II from City Union Bank Limited is secured by mortgage 1) commercial building having a built up area of 5,122 sqft on II Floor at "VTN Square" building owned by the company. 2) commercial property having a built up area of 6,122 sqft on the IV floor at "CITI TOWER" building owned by the company. 3) commercial property having a built up area of 6,954 sqft on II & III floorat ROMA building

i. The Loan is repayable by a term of 42 months including moratorium of 12 months from the date of first disbursement.

Term loan from Axis Bank Limited is secured by Equitable mortgage of residential project "Lumina" Block D, G & H2 situated at Nellikuppam Road, Kayarambedu Village, Guduvanchery. Charge is created on the total loan amount.

i- There is a moratorium of 18 months from February, 2015 to July, 2016. Repayment of Rs. 55 lakhs is required from August, 2016 onwards up to January, 2018. EMI of Rs. 55 lakhs, is based on first tranche of Rs. 10 Crores drawn from HDFC Limited,

ii. The Term Loan-1 from HDFC Limited is secured by Town & Country, Lakeview Gardens, Ramapuram, Sriperumbudur measuring about 26.25 acres of land.

i. The total loan sanctioned to the company is amounting to Rs.3000 lakhs. The term of the loan is 36 months including moratorium of 18 months. Repayment of Rs. 170 lakhs is required from August, 2016. The last EMI payable in February, 2018 is Rs. 110 lakhs.

ii- The housing loan taken from LIC Housing Finance Limited is secured by (March 31, 2017: 15, April 1, 2016:17) apartments having a built up area of (March 31, 2017: 35,460, April 1, 2016: 41,747sq.ft) of our project, "Kiruba Cirrus" at Valasaravakkam, Chennai.

i. The total loan sanctioned to the company is amounting to Rs.2300 lakhs.The term loan is repayable in 36 months from the date of first disbursement starting from December, 2016 including moratorium period of 12 months. The monthly EMI is Rs.63.89 lakhs.

ii. The term loan from Tata Capital Housing Finance Limited is secured by (March 31, 2017: 27, April 1, 2016: 35) apartments, in The Central Park Lake Front Project located at Sholinganalur, Chennai admeasuring saleable area of (March 31, 2017: 45,500 sq. ft, April 1, 2016: 59,195 sq. ft).

i. The total loan sanctioned to the company is amounting to Rs.4700 lakhs/-.The term loan is repayable in 10 quarterly installments of Rs. 470 lakhs /- commencing from March 31, 2019 including moratorium period of 18 months.

ii. The term loan from Axis Finance Limited is secured by Unsold apartments of the projects Kiruba cirrus- 13 apartments of 31,307 Sq.ft, The Central Park Lake front -20 apartments of 34,035 Sq.ft , Townsville (A, B, C &D Blocks)- 31 apartments of 35,070 Sq. Ft, Lumina ( E, F & G Blocks)- 53 apartments of 59,847 Sq. Ft (March 31, 2017: Nil; April 1, 2016: Nil).

i. The facility is obtained for the working capital.

The facility is secured by a) All that Piece and parcel of land located at Sriperumbudur Village ,Kancheepuram district aggregating to 14.08 acres out of 22.38 acres, b) Project Altura Blocks -A, B,C,D & E Super Built-up Area aggregating to 3,56,301 Sq. Ft and UDS of 1,39,603 Sq. Ft

a) The amount sanctioned to the Company amounting to Rs. 500 lakhs.

As on March 31, 2018

Term loan II from City Union Bank Limited is secured by mortgage of 1) commercial building having a built up area of 5,122 sqft on II Floor at "VTN Square" building owned by the company. 2) All that piece and parcel of Non residential super structures (Elcot Avenue , Lancor sports & Recreation centre) of a built up area of 20,572 sq.ft inclusive of common areas together with 9,583 sq.ft of undivided share of land out of the total extent of 1,59,423 sq.ftsituated in "The Central Park South" in Sholinganallur village, Tambaram Taluk, Kancheepuram district.

As on March 31, 2017

Term loan II from City Union Bank Limited is secured by mortgage of 1) commercial building having a built up area of 5,122 sqft on II Floor at "VTN Square" building owned by the company. 2) commercial property having a built up area of 6,122 sqft on the IV floor at "CITI TOWER" building owned by the company

As on April 1, 2016

Term loan II from City Union Bank Limited is secured by mortgage of 1) commercial building having a built up area of 5,122 sqft on II Floor at "VTN Square" building owned by the company. 2) commercial property having a built up area of 6,122 sqft on the IV floor at "CITI TOWER" building owned by the company. 3) commercial property having a built up area of 6,954 sqft on II & III floorat ROMA building owned by the company

1.03 Contingent liabilities

The Company’s pending litigations comprise of claims against the Company primarily by the customers and proceedings pending with Service Tax / VAT and other

a) In the matter of the Commercial Property, “Menon Eternity” owned by the Company, the arbitrator had issued an award dated March 16, 2016, invalidating the sales

b) The Company has certain dispute with a lessee which has arisen on termination of lease agreement by the lessee within the lock in period. In terms of the lease

c) Other claims other than the details as mentioned above for leases not acknowledged as debt is Rs. 45.04 lakhs (excluding interest) where the Company has furnished a

d) In pursuance to the increased demand on premium FSI and OSR charges by the Chennai Metropolitan Development Authority (CMDA) over and above the normal FSI

e) The service tax department has raised a demand of Rs.223.27 lakhs along with interest and penalty for the period February 2009 to June 2010.The Company has paid

f) The service tax department has raised a demand of Rs. 156.10 lakhs and also a penalty of equal amount on Lancor GST Developments Limited (merged with Lancor

The sensitivity analysis have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period, while The sensitivity analysis presented above may not be representative of the actual change in the projected benefit obligation as it is unlikely that the change in assumptions Furthermore, in presenting the above sensitivity analysis, the present value of the projected benefit obligation has been calculated using the projected unit credit method There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.

Characteristics of defined benefit plan

The Company has a defined benefit gratuity plan in India which is unfunded. The company’s defined benefit gratuity plan is a final salary plan for employees, which.

Risks associated with defined benefit plan

Provision of a defined benefit scheme poses certain risks, some of which are detailed hereunder, as companies take on uncertain long term obligations to make future Interest rate risk

A fall in the discount rate which is linked to the Government security rate will increase the present value of the liability requiring higher provision.

Salary risk

The present value of the defined benefit plan liability is calculated by reference to the future salaries of members. As such, an increase in the salary of the members more Asset-liability Matching Risk

The plan faces the ALM risk as to the matching cash flow. Company has to manage pay-out based on pay as you go basis from own funds.

Mortality risk

Since the benefits under the plan is not payable for life time and payable till retirement age only, plan does not have any longevity risk.

During the year, there were no plan amendments, curtailments and settlements.

b) Defined contribution plans

The Company operated defined benefits contribution retirement benefit plans for all qualifying employees.

The total expenses recognised in the statement of profit & loss is Rs. 24,00,063 (March 31, 2017: 27,82,414) represents the contribution payable to these plans by the

1.04 Disclosures as required by Ind AS 108 Operating segments

As permitted by the paragraph 4 of the Indian Accounting Standard (Ind AS 108), ''Operating segment'', if a single financial report contains both consolidated financial

1.05 Leases

a) Operating leases (As lessee)

a) The Company has entered into commercial leases on office building. The lease has a life of one year with renewal option included in the contracts. There are no

b) The company has also entered into non-cancellable lease of residential property having a lease term up to 36 months. Rental expenses debited to the Statement of

b) Operating leases (As lessor)

a) The company has entered into leasing of residential property having a lease term up to 11 months. Rental income credited to statement of profit & loss amounting to

b) The Company has entered into commercial property leases on its constructed premises. These non-cancellable leases range for a period between three to fifteen

1.06 Capital management

The Company’s objective while managing capital is to maintain stable capital structure to support business stability and growth, ensure adherence to the covenants and The Company’s capital requirement is mainly to fund its business expansion by developing various residential and commercial projects and repayment of borrowings The Company has adhered to material externally imposed conditions relating to capital requirements and there has not been any delay or default during the period The Company monitors its capital using gearing ratio, which is net debt divided to total equity.

1.07 Financial instruments

(i) Methods & assumption that all used to estimates the fair values

The fair values of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in a current transaction between willing The following methods and assumptions were used to estimate the fair values:

a) The carrying amounts of receivables and payables which are short term in nature such as trade receivables, other receivables, other bank balances, deposits, loans,

b) The fair values for long term loans given and remaining non current financial assets were calculated based on cash flows discounted using a effective interest lending

c) The fair values of long term security deposits taken and non-current borrowings are based on discounted cash flows using a current borrowing rate. They are classified

d) For financial assets and liabilities that are measured at fair value, the carrying amounts are equal to the fair values.

(ii) Categories of financial instruments

The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:

(iii) Fair value of financial instruments measured at amortised cost

1.08 Financial risk management

The Company’s financial risk management is an integral part of how to plan and execute its business strategies. The Company’s financial risk management policy is set The Company activities expose it to financial risks namely credit risk, liquidity risk and market risk. The board of directors of the Company has overall responsibility for the

a) Credit risk:

Credit risk arises from the possibility that counter party will cause financial loss to the company by failing to discharge its obligation as agreed. The Company’s exposure Real estate business

The Company’s trade receivables does not have any expected credit loss as the company does not have any possession until all dues receivables as received from the customers. During the periods presented, the Company has not made any write-offs of trade receivables.

Rental business

The Company follows a simplified approach (i.e. based on lifetime ECL) for recognition of impairment loss allowance on Trade receivables. For the purpose of measuring Trade receivables consist of mainly customer balances relating to real estate and rental business with no significant concentration of credit risk. The outstanding trade

b) Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash or another financial asset. The Company liquidity risk management policies include to, at all times ensure sufficient liquidity to meet its liabilities when they are due, by maintaining adequate sources of financing from banks at an optimised cost. In addition, processes and policies related to such risks are overseen by senior management. The Company’s senior management monitors the Company’s net liquidity position through rolling forecasts on the basis of expected cash flows. The Company takes into account the liquidity of the market in which they operate.

Financing arrangements

The Company has sufficient sanctioned line of credit from its bankers / financiers; commensurate to its business requirements. The Company reviews its line of credit available with bankers and lenders from time to time to ensure that at all point of time there is sufficient availability of line of credit.

The Company pays special attention to the net operating working capital invested in the business. In this regard considerable work has been performed to control and reduce collection periods for trade and other receivables, as well as to optimise accounts payable with the support of banking arrangements to mobilise funds.

c) Market risk

Market risk comprises of two types of risks. They are interest risk and other price risk i.e. equity risk.

i) Interest risk

The Company has both floating & fixed rate borrowings which are carried at amortised cost. The fixed rate borrowings are not subject to interest rate risk considering the future cash outflows will not fluctuate because of any change. The variable interest rate borrowings are subject to interest rate risk. The interest rate risk is managed by the Company by monitoring monthly cash flow which is reviewed by management to prevent loss.

ii) Equity price risk

The Company''s non-listed equity securities are susceptible to market price risk arising from uncertainties about future values of the investment securities. The Company manages such risk within acceptable parameters set by the Board of directors.

1.09 Expenditure towards corporate social responsibility (CSR) activities

During the year the Company has contributed Rs. 34,89,022 /- (March 31, 2017: Rs. 39,34,963 /-) to a trust formed by it in the name of Lancor Foundation. Out of the contributed amount Rs. 40,00,000 has been paid as advance by Lancor Foundation towards purchase of land for the purpose of establishment of skill training centre to promote education and employment enhancing vocation skills with pursuant to the Schedule VII of the Companies Act 2013

1.10 Disclosure as per Section 186 of the Companies Act, 2013:

The operations of the Company are classified as ''infrastructure facilities'' as defined under Schedule VI of the Act. Accordingly, the disclosure requirements specified in sub section 4 of Section 186 of the Act in respect of loans given or guarantee given or security provided and the related disclosures on purposes/ utilization by recipient companies, are not applicable to the Company except details of investment made during the year as per section 186(4) of the Act.

The Company has made investments in the following body corporates:

Lancor Guduvanchery Developments Limited-Nil (March 31, 2017: Nil, April 1, 2016: Nil)

Lancor Sriperumbudur Developments Limited-Nil (March 31, 2017: Nil, April 1, 2016: Nil)

Lancor Egtoor Developments Limited- 5,00,000 (March 31, 2017: 5,00,000, April 1, 2016: 5,00,000)

Lancor Maintenance & Services Limited- 1,00,000 (March 31, 2017: 1,00,000, April 1, 2016:1,00,000)

1.11 "There is an unclaimed dividend of Rs 69,940 required to be transferred to Investor Education and Protection Fund (IEPF). The Company is in process of transferring such amount to IEPF, in accordance with the provisions of section 125 of the Companies Act, 2013 and relevant rules thereunder.

1 .12 The Board of Directors at their board meeting held on May 14, 2018, have recommended a final dividend of Rs 0.20 per equity share of Rs 2/- each fully paid for the financial year 2017-18 aggregating to Rs 81 lakhs . The payment is subject to the approval of shareholders in the ensuing Annual General Meeting. The same has not been recognised as liability.

Foot notes for Ind AS adjustments

i) Property, plant and equipment

The Company has availed the exemption available under Ind AS 101 to continue the carrying value for all of its Property, Plant and Equipment''s and Intangibles recognised in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition.

ii) Investment property

Under the previous GAAP, investment properties were presented as part of property, plant and equipment. Under Ind AS, investment properties are required to be separately presented on the face of the balance sheet. There is no impact on the total equity or profit as a result of this adjustment.

iii) Investment in subsidiaries

Under Ind AS, a first- time adopter can measure investments at cost determined in accordance with Ind AS 27 or at deemed cost. The deemed cost of the investment can be the fair value of the investment at the transition date or the previous IGAAP carrying amount. The Company has opted to measure its investments in subsidiary at the IGAAP carrying amount as its deemed cost on the date of transition.

iv) Investment in equity of other companies

Under the previous GAAP, long term investment were measured at cost. Under Ind AS, the company has opted to measure its investment in other equities at fair value through profit or loss. This has resulted in increase or decrease in fair value of investment with corresponding increase or decrease in provision for gain/loss on fair valuation of investment.

v) Security deposit

Under the previous GAAP, interest free lease security deposits (that are refundable in cash on completion of the lease term) are recorded at their transaction value. Under Ind AS, all financial assets are required to be recognised at fair value. Accordingly, the company has fair valued these security deposits under Ind AS and the difference between the fair value and the transaction value of the security deposit has been recognised as prepaid rent.

vi) Defined benefit plans

Under previous GAAP, actuarial gains and losses were recognised in Statement of Profit and Loss. Under Ind AS, the actuarial gains and losses form part of remeasurement of the net defined benefit liability / asset which is recognised in other comprehensive income. Consequently, the tax effect of the same has also been recognised in other comprehensive income under Ind AS instead of profit or loss.

vii) Loan to subsidiary (partnership firm)

Under previous GAAP, interest free loans given to subsidiaries are accounted at their transaction value. Under Ind AS, the Company has discounted the interest free loans given to subsidiaries with corresponding increase in the investment.

viii) Loan to employees

Under previous GAAP interest free loans were given to employees, under Ind AS the Company discounted the interest free loans given to employees with corresponding increase in employee benefits.

ix) Proposed dividend

Under the previous GAAP, dividends proposed by the Board of Directors after the balance sheet date but before the approval of the financial statements were considered as adjusting events. Accordingly, proposed dividend was recognized as a liability. Under Ind AS, such dividends are recognized when the same is approved by the shareholders in the general meeting.

x) Past Business Combination

We refer to note no. 1.26(B) in relation to past business combination, as per Ind AS, as the business combination has happened between Companies under the common control, accordingly the assets and liabilities after inter company elimination of the Company has been restated and has been given effect on transition date i.e. April 1, 2016

xi) Deferred tax

GAAP requires deferred tax accounting using income statement approach, which focuses on differences between taxable profits and accountable profits for the period. Ind AS 12 requires entities to account deferred tax using balance sheet approach which focuses on temporary differences between the carrying amount of an asset or liability in the balance sheet and its tax base. The application of Ind AS 12 approach has resulted in recognition of deferred tax on new temporary differences which was not required under GAAP.

In addition, the various transitional adjustments lead to temporary differences. According to the accounting policies, the Company has to account for such difference. Deferred tax adjustments are recognised in correlation to the underlying transaction in component of equity.

xii) Other comprehensive income

Under previous GAAP, there was no concept of other comprehensive income. Under Ind AS, items of income or expense that are not recognised in statement of profit and loss are recognised as “other comprehensive income” which includes remeasurement of defined benefit plans.

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Mar 31, 2016

b. Rights, preference and restrictions attached to shares:

Equity shares

The Company has only one class of equity shares having a par value of Rs.2 per share. Each holder of equity shares is entitled to one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing annual general meeting, except in case of interim dividend.

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 in proportion to the number of equity shares held by the share holders.

During the year March 31, 2016, the amount of dividend per share recognized as distribution to equity shareholder was Rs.1 (March 31, 2015: Rs.2).

The above share holding is as per the records of the Company, including its register of share holders/members.

d. Details of aggregate number of shares issued as bonus for the preceding five years from the end of the reporting period:

The Company has allotted 2,02,50,000(Previous Year: NIL) fully paid up equity shares of Rs.2 each, pursuant to the bonus issue approved by the shareholders through a postal ballot.

1 Notes on Scheme of Amalgamation with Lancor Gudvanchery Developments Limited and Lancor Sriperumbudur Developments Limited

The Board of Directors of the Company at its meeting held on May 7, 2015, has approved the Scheme of Amalgamation of two of its wholly owned subsidaries M/S.Lancor Guduvanchery Developments Limited (Transferor Co.) and Lancor Sriperumbdur Developments Limited (Transferor Co.). As the transferor companies are wholly owned subsidiary companies, no equity shares or other shares would be allotted in lieu or in exchange for holding of the shares in the transferor companies by the transferee company. The petition relating to the merger has been admitted by the Hon''ble High Court of Judicature of Madras and is pending for approval.

Basic earning per share amounts is calculated by dividing profit for the year attributable to the equity share holders by the weighted average number of equity share outstanding during the year. As there are no dilutive instruments outstanding, basic and dilutive earning per shares are identical.

b) The slow down in the property development activity on plot of land at Sriperumbudur and especially due to drop in demand is considered as part of operating cycle in the real estate sector. Accordingly, the borrowing cost incurred during such period on entire project is capitalized. The management is of the opinion that having considered various factors relating to development including preparatory work carried out for intended development and market value of property , the net realizable value in case of projects undertaken for development would be higher than its book value. The auditor''s have relied upon management’s opinion.

2 Gratuity benefit plans

(i) The Company has one defined benefit plan with respect to gratuity for its employees. Under the gratuity plan, every employee is entitled to a benefit equivalent to fifteen days salary last drawn for each completed year of service in line with the payment of Gratuity Act, 1972 and the same is payable at the time of separation from the Company or retirement which ever is earlier.

(ii) The present value of the defined benefit obligations and the related current service cost were measured using the projected unit credit method, with actuarial valuation being carried out at each balance sheet date.

(iii) The following tables summarize the components of net benefit expense recognized in the statement of profit and loss and amounts recognized in the balance sheet for the respective plans.

3 Leases

Operating lease: Company as lessee

The Company has entered into commercial leases on office building. The lease has a life of five years with renewal option included in the contracts. There are no restrictions placed upon the Company by entering into these leases. Rental expenses debited to Statement of profit & loss amounting to Rs.15,11,922 (March 31, 2015: Rs.34,42,170)

Operating lease: Company as lessor

The Company has entered into commercial property leases on its constructed premises. These non-cancellable leases range for a period between three to fifteen years. Most of the leases are renewable for a further period on mutually agreeable terms and also include escalation clauses.

The future minimum lease rental has been considered above based on the lock in period as per lease agreement entered between the Company and lessee.

Note: Details of debits/credits in the nature of reimbursements are not included in the above

4 Interest in a joint venture

In compliance with the Accounting Standard relating to ''Financial Reporting of Interest in Joint Ventures'' (AS 27), as prescribed in the accounting standards notified under section 133 of the Companies Act, 2013, read together with rule 7 of the Companies (Accounts) Rules, 2014, the Company has interest in a jointly controlled entity (Partnership Firm).

The Company holds 100% interest in Central Park West Venture(firm), a jointly controlled entity which is involved in construction and sale of residential properties.

The Company''s share of the assets, liabilities, revenues and expenses of the jointly controlled entity for the year ended March 31, 2016 ( March 31, 2015) are as follows: (before inter Company elimination)

a) The share of contingent liability of the Company for which it is contingently liable in relation to its interest in the partnership firm is Rs.10,02,283(Previous Year: Rs.10,02,283) and an equal amount of penalty.

b) The Company has not entered in to any capital commitments in relation to its interest in the partnership firm.

5 Segment information

As permitted by paragraph 4 of Accounting Standard -17 (AS 17), '' Segment Reporting'', as specified under section 133 of the Companies Act 2013 read with Rule 7 of the Companies (Accounts) Rules 2014 if a single financial report contains both consolidated financial statements and the separate financial statements of the parent, segment information need to be presented only on the basis of the consolidated financial statements. Therefore disclosures required by AS 17 are given in the consolidated financial statements.

Joint Ventures

a) Central Park West Venture

Key Management Personnel (KMP) & relatives

a) R.V. Shekar (upto 1st October 2014)

Related party transactions

The following table provides the total amount of transactions that have been entered into with related parties for the relevant financial year:

6 Assets Held for Sale

The board of directors has decided in its meeting held on March 23, 2016 to dispose off certain immovable properties for which, subsequent to the date of balance sheet it has obtained necessary approval from the members. The Company has been able to dispose off certain immovable properties at a price greater than the book value. The management is hopeful of disposing other identified immovable properties having book value of Rs.97,693,068/- at a price greater than the book value.”

7 Contingent liabilities

a)In respect of one of the Commercial Properties owned by the Company, “Menon Eternity” having carrying value of Rs.36,66,29,353/- there were disputes with the land owner(s). The Company has challenged arbitration award dated 16/03/2016, which had set aside the sale deed pertaining to land, before the Honorable High Court of Madras for setting aside the award under section 34 of the Arbitration and Reconciliation Act, 1996 and the matter is pending. In view of the management, no provision is considered necessary, as the Company has been granted stay from operation of the arbitration award.

b) The Company has certain dispute with a lessee which has arisen on termination of lease agreement by the lessee within the lock in period. In terms of the lease agreement the Company has forfeited the deposit amount. The lessee has demanded refund of rental deposit of Rs.2,18,35,938 along with interest and damages amounting to Rs.2,55,78,657. The Hon’ble High court of Madras has not granted interim injunction in respect to interim application filed by the lessee. Aggrieved by the order of the single judge , the lessee has filed an appeal before the larger bench and same is pending. Further the main suit is also pending. In view of the management, the claim of lessee is not sustainable and accordingly, claims are not acknowledged as debt.

c) Other claims other than the details as mentioned above for a leases not acknowledged as debt is Rs.45,04,320 (excluding interest). The Company has furnished a bank guarantee in this regard.

d) In pursuance to the increased demand on premium FSI and OSR charges by the Chennai Metropolitan Development Authority (CMDA) over and above the normal FSI charges paid by the Company as per the guideline value prevailing at the time of filing the application with respect to one of the project, the Company has filed a writ petition before the Hon’ble High Court of Madras. As per the interim direction of the Hon’ble court the differential amount of Rs.74,84,000 has been furnished by way of a bank guarantee and the matter is pending. In view of the management the increased demand is based revision in the guideline value which was not prevailing at the time of initial approval, accordingly the claims are not acknowledged as debt.

e)The service tax department has raised a demand of Rs.2,23,27,853 along with interest and penalty for the period Feb’09 to Jun’10.The Company has paid the demanded amount except for interest and penalty and it has filed an appeal before the CESTAT dated May 10,2012 stating that amount received from the customers are not chargeable to service tax prior to July 1, 2010 under various grounds. The matter is pending before the Appellate Tribunal.

f) The service tax department has raised a demand of Rs.15,610,334 and also a penalty of equal amount on Lancor GST Developements Limited (merged with Lancor Holdings Limited with an appointed date, April 1st, 2013) for wrong availment of Cenvat Credit. The erstwhile holding Company of Lancor GST Developements Limited has undertaken to reimburse to the Company to the extent of Rs.3,902,584 in the event the Company is made liable to pay the demand. The matter is pending before the Appellate Tribunal. The Company has been advised that these proceedings are not likely to result into any liability as the Company had reversed it without utilizing the same.

8 As per section 135 of the Companies Act, 2013, to carry out CSR Activities as specified under Schedule VII of the act, the Company formed a trust in the name of Lancor Foundation. The Company has spent Rs.45,600/ -(Previous Year:11,16,275) on its own and has contributed Rs.38,43,095/-(Previous Year: 26,62,120) to the trust established by it to carry out the activities as prescribed in the Schedule VII of the Act 2013.

Note: No loans have been granted by the Company to any person for the purpose of investing in the shares of Lancor Holdings Limited or any of its subsidiaries.

9 Previous year figures

Previous year figures have been regrouped, reclassified and recasted wherever considered necessary so as to confirm with the current year''s figures.

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Mar 31, 2015

1.Notes on Scheme of Amalgamation with Lancor GST Developments Limited and Lancor Realty Limited

The Scheme of Amalgamation of Lancor GST Developments Limited (LGSTDL) and the Lancor Realty Limited (LRL) with the Company was sanctioned by the High Court of Judicature of Madras vide its order dated March 31, 2015. The Appointed Date of the amalgamation is April 1, 2013, while it became effective on April 15, 2015.

A) Amalgamation of Lancor GST Developments Limited (LGSTDL) with the Company

a) LGSTDL was engaged in the business of real estate development and was a wholly owned subsidiary of the Company.

b) Pursuant to the Scheme of Amalgamation in accordance with section 391 - 394 of the Companies Act, 1956 as approved by the shareholders of the Company and subsequently sanctioned by the High Court of Judicature of Madras vide their order dated March 31, 2015, LGSTDL has been amalgamated and all assets and liabilities are transferred to and vested in the Company with effect from April 1, 2013 (the Appointed Date).

c) During the transition period i.e. from the Appointed Date to the Effective Date, LGSTDL carried on the aforesaid business activities including all statutory compliances in "trust" in its own name but for and on behalf of the Company. The transactions carried out by LGSTDL during the aforesaid period have been incorporated in the books of the Company on sanctioning of the said Scheme.

d) The said scheme has been given effect to in the accounts under the "Pooling of Interest Method" as prescribed by the Accounting Standard 14 on Amalgamation as prescribed under section 133 of the Companies Act, 2013 ('Act') read with Rule 7 of the Companies Accounts (Rules), 2014.

e) In accordance with the scheme, the assets and liabilities, securities premium and revaluation reserve of LGSTDL as at April 1, 2013 along with subsequent additions and deletions up to March 31, 2014 have been recorded at their book values. In terms of Scheme of amalgamation, as the LGSTDL is a wholly owned subsidiary of the Company, it has not issued any shares. Accordingly, equity share capital of LGSTDL and investments in equity shares of LGSTDL has been adjusted and the resultant balance amount of Rs. 87,50,349 has been adjusted to general reserve of the Company. Similarly the contingent liability as on appointed date also for the period appointed date to March 31, 2014 is disclosed.

f) The profit or loss of LGSTDL from appointed date April 1, 2013 to March 31, 2014 have been trans- ferred to Surplus/(deficit) in the statement of profit and loss of the Company. The operations of the LGSTDL during the year April 1, 2014 to March 31, 2015 have been accounted for in the current year's statement of profit and loss of the Company. The debit balance in the Surplus/(deficit) in the statement of profit and loss of LGSTDL as at April 1, 2014 amounting to Rs. 20,50,96,903 has been included in the Surplus/(deficit) in the statement of profit and loss of the Company.

g) The Company is in the process of transferring the documents, agreements, title deeds for the proper- ties, balance in staff benefit schemes etc. in its own name.

B) Amalgamation of Lancor Realty Limited (LRL) with the Company

a) LRL was engaged in the business of brokerage from sale or renting of immovable property and was a wholly owned subsidiary of the Company.

b) Pursuant to the Scheme of Amalgamation in accordance with section 391 - 394 of the Companies Act, 1956 as approved by the shareholders of the Company and subsequently sanctioned by the High Court of Judicature of Madras vide their order dated March 31, 2015, LRL has been amalgamated and all assets and liabilities are transferred to and vested in the Company with effect from April 1, 2013 (the Appointed Date).

c) During the transition period i.e. from the Appointed Date to the Effective Date, LRL carried on the aforesaid business activities including all statutory compliances in "trust" in its own name but for and on behalf of the Company. The transactions carried out by LRL during the aforesaid period have been incorporated in the books of the Company on sanctioning of the said Scheme.

d) The said scheme has been given effect to in the accounts under the "Pooling of Interest Method" as prescribed by the Accounting Standard 14 on Amalgamation as prescribed under section 133 of the Companies Act, 2013 ('Act') read with Rule 7 of the Companies Accounts (Rules), 2014.

e) In accordance with the scheme, the assets and liabilities of LRL as at April 1, 2013 along with subsequent additions and deletions up to March 31, 2014 have been recorded at their book values. In terms of Scheme of amalgamation, as the LRL is a wholly owned subsidiary of the Company, it has not issued any shares. Accordingly, equity share capital of LRL and investments in equity shares of LRL has been adjusted and as the resultant difference amount is zero, no amount has been adjusted to general reserve of the Company. Similarly the contingent liability as on appointed date also for the period appointed date to March 31, 2014 is disclosed.

f) The general reserve and the profit or loss of LRL from appointed date April 1, 2013 to March 31, 2014 have been transferred to general reserve and Surplus/(deficit) in the statement of profit and loss of the Company respectively. The operations of the LRL during the year April 1, 2014 to March 31, 2015 have been accounted for in the current year's statement of profit and loss of the Company. The general reserve balance and credit balance in the Surplus/(deficit) in the statement of profit and loss of LRL as at April 1, 2014 amounting to Rs. 3,20,511 and Rs. 2,82,69,109 respectively has been included in the general reserve and Surplus/(deficit) in the statement of profit and loss of the Company.

g) The Company is in the process of transferring the documents, agreements, title deeds for the proper- ties, balance in staff benefit schemes etc. in its own name.

2. Gratuity benefit plans

(i) The Company has one defined benefit plan with respect to gratuity for its employees. Under the gratuity plan, every employee is entitled to a benefit equivalent to fifteen days salary last drawn for each completed year of service in line with the payment of Gratuity Act, 1972 and the same is payable at the time of separation from the Company or retirement whichever is earlier.

(ii) The present value of the defined benefit obligations and the related current service cost were measured using the projected unit credit method, with actuarial valuation being carried out at each balance sheet date.

(iii) The following tables summarize the components of net benefit expense recognized in the statement of profit and loss and amounts recognized in the balance sheet for the respective plans.

3. Leases

Operating lease: Company as lessee

The Company has entered into commercial leases on office building. The lease has a life of five years with renewal option included in the contracts. There are no restrictions placed upon the Company by entering into these leases. Rental expenses debited to Statement of profit & loss amounting to Rs 34,42,170 (March 31, 2014: Rs.38,20,076)

Operating lease: Company as less or

The Company has entered into commercial property leases on its constructed premises. These non-cancellable leases range for a period between three to fifteen years. Most of the leases are renewable for a further period on mutually agreeable terms and also include escalation clauses.

a) The share of contingent liability of the Company for which it is contingently liable in relation to its interest in the partnership firm is Rs. 10,02,283 and an equal amount of penalty.

b) The Company has not entered in to any capital commitments in relation to its interest in the partnership firm.

4. Segment information

Pursuant to enactment of the Companies Act, 2013, the Company has evaluated internal financial controls and risk management systems and as a result has revamped internal reporting system and the organization's structure. The group's operation is predominantly in the development of residential, commercial and allied activities like property rental, maintenance of property and brokerage on account of sale and leasing of properties. Based on above exercise, the management is of the view that property rental and other activities which were considered as a separate segment in the previous financial year are related to the main activity and are not to be construed as an independent segment. Accordingly, there are no primary reportable segments as per Accounting Standard. 17 As the group is primarily operates in India, it is considered as a single geographical segment.

5. Related party disclosures

Names of related parties and related party relationship

Subsidiaries

a) Lancor Maintenance & Services Limited

b) Lancor Guduvanchery Developments Limited

c) Lancor Egatoor Developments Limited

d) Lancor Sriperumbudur Developments Limited

e) Lancor Realty Limited (refer note no. 4.01)

f) Lancor GST Developments Limited (refer note no. 4.01)

Joint Ventures

a) Central Park West Venture

Key Management Personnel (KMP) & relatives

a) R.V. Shekar

b) Sangeetha Shekar

c) Shwetha Shekar

6. Contingent liabilities

a) The Arbitration proceeding on the "Menon Eternity" is still pending. In this regard the Company has made a claim of Rs.

9,98,47,408 while the land owners have made counter claim of Rs. 62,97,55,352, which the Company has refuted by filing a rejoinder. As per the interim order dated October 20, 2010 of the sole arbitrator the Company has given possession of the area belonging to the land onwers on receipt of Rs. 4.82 Crores being refundable deposits from them along with the bank guarrantee of Rs. 1.66 Crores to the arbitrator. In view of the management, the claims are frivolous and are not sustainable. Accordingly the company does not acknowledge claims of the land owners.

b) The Company has certain dispute with a lessee which has arisen on termination of lease agreement by the lessee within the lock in period. In terms of the lease agreement the Company has forfeited the deposit amount. The lessee has demanded refund of rental deposit of Rs. 2,18,35,938 along with interest and damages amounting to Rs. 2,55,78,657. The Hon'ble High court of Madras has not granted interim injunction in respect to interim application filed by the lessee. Aggrived by the order of the single judge , the lessee has filed an appeal before the larger bench and same is pending. Further the main suit is also pending. In view of the management, the claim of lessee is not sustainable and accordingly, claims are not acknowledged as debt.

c) Other claims other than the details as mentioned above for a leases not acknowledged as debt is Rs. 45,04,320 (excluding interest). The Company has furnished a bank guarantee in this regard.

d) In pursuance to the increased demand on premium FSI and OSR charges by the Chennai Metropolitan Develop- ment Authority (CMDA) over and above the normal FSI charges paid by the Company as per the guideline value prevailing at the time of filing the application with respect to one of the project, the Company has filed a writ petition before the Hon'ble High Court of Madras. As per the interim direction of the Hon'ble court the differential amount of Rs. 74,84,000 has been furnished by way of a bank guarantee and the matter is pending. In view of the manage- ment the increased demand is based revision in the guideline value which was not prevailing at the time of initial approval, accordingly the claims are not acknowledged as debt.

e) The service tax department has raised a demand of Rs.2,23,27,853 along with interest and penalty for the period Feb'09 to Jun'10. The Company has paid the demanded amount except for interest and penalty and it has filed an appeal before the CESTAT dated May 10, 2012 stating that amount received from the customers are not chargeable to service tax prior to July 1, 2010 under various grounds. The matter is pending before the Appellate Tribunal.

f) The service tax department has raised a demand of Rs. 15,610,334 and also a penalty of equal amount on Lancor GST Developments Limited (refer note no. 4.01) for wrong a ailment of Cenvat Credit. The erstwhile holding Company of Lancor GST Developments Limited has undertaken to reimburse to the Company to the extent of Rs. 3,902,584 in the event the Company is made liable to pay the demand. The matter is pending before the Appellate Tribunal. The Company has been advised that these proceedings are not likely to result into any liability as the Company had reversed it without utilizing the same.

7. As per section 135 of the Companies Act, 2013, to carry out CSR Activities as specified under Schedule VII of the act, the Company formed a trust in the name of Lancor Foundation during this year. The Company has spent Rs. 11,16,275/- on its own and has contributed Rs. 26,62,120/- to the trust established by it to carry out the activities as prescribed in the Schedule VII of the Act 2013.

8. Details of dues to micro and small enterprises as defined under the MSMED Act, 2006

The Company is in the process of compiling the relevant information from its creditors about their coverage under Micro, Small and Medium Enterprises Development Act, 2006 ('MSMED'). None of the enterprises have responded till date regarding their status under the said Act.

9. Previous year figures

Previous year figures have been regrouped, reclassified and recanted wherever considered necessary so as to confirm with the current year's figures.

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Mar 31, 2014

1.01 Corporate information

Lancor Holdings Limited (the Company) is a public Company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on one stock exchange in India. The Company is engaged in construction and sale of residential properties, construction and leasing of commercial properties.

1.02 Basis of preparation

These financial statements have been prepared in accordance with the generally accepted accounting principles in India, on the basis of going concern under the historical cost convention and also on accrual basis. These financial statements comply, in all material aspects, with the provisions of the Companies Act, 1956 and the Companies Act, 2013 (to the extent applicable) and also accounting standards prescribed by the Companies (Accounting Standards) Rules, 2006, which continue to be applicable in respect of Section 133 of the Companies Act, 2013 in terms of General Circular 15/2013 dated September 13, 2013 of the Ministry of Corporate Affairs.

All assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle and other criteria set out in the Revised Schedule VI to the Companies Act, 1956. Based on the nature of products and the time between the acquisition of assets for processing and their realisation in cash and cash equivalents, the Company has ascertained its operating cycle as less than 12 months for the purpose of current – non current classification of assets and liabilities.

The accounting policies adopted in the preparation of financial statements are consistent with those of previous year.

1.03 Gratuity benefit plans

(i) The Company has one defined benefit plan with respect to gratuity for its employees. Under the gratuity plan, every employee is entitled to a benefit equivalent to fifteen days salary last drawn for each completed year of service in line with the payment of Graturity Act, 1972 and the same is payable at the time of separation from the Company or retirement which ever is earlier.

(ii) The present value of the defined benefit obligations and the related current service cost were measured using the projected unit credit method, with actuarial valuation being carried out at each balance sheet date.

(iii) The following tables summarize the components of net benefit expense recognized in the statement of profit and loss and amounts recognized in the balance sheet for the respective plans.

Statement of profit and loss Net employee benefit expense recognized in the employee cost 4.05 Leases

Operating lease: Company as lessee

The Company has entered into commercial leases on office building. The lease has a life of five years with renewal option included in the contracts. There are no restrictions placed upon the Company by entering into these leases. Rental expenses debited to Statement of profit & loss amounting to Rs 38,20,076 (March 31, 2013: Rs.39,36,014)

Operating lease: Company as lessor

The Company has entered into commercial property leases on its constructed premises. These non-cancellable leases range for a period between three to nine years. Most of the leases are renewable for a further period on mututally agreeable terms and also include escalation clauses.

The future minimum lease rental has been considered above based on the lock in period as per lease agreement entered between the Company and lessee.

Note: Details of debits/credits in the nature of reimbursements are not included in the above

1.04 Interest in a joint venture

In compliance with the Accounting Standard relating to ''Financial Reporting of Interest in Joint Ventures'' (AS 27), as prescribed in the Companies Accounting Standard Rules, 2006, the Company has interest in a jointly controlled entity (Partnership Firm).

The Company holds 100% interest in Central Park West Venture(firm), a jointly controlled entity which is involved in construction and sale of residential properties.

The Company''s share of the assets, liabilities, revenues and expenses of the jointly controlled entity for the year ended March 31, 2014 ( March 31, 2013) are as follows: (before inter Company elimination)

1.05 Segment information

As permitted by paragraph 4 of Accoutning Standard -17 (AS 17), '' Segment Reporting'', as prescribed in the Companies Accounting Standard Rules, 2006 if a single financial report contains both consolidated financial statements and the separate financial statements of the parent, segment information need be presented only on the basis of the consolidated financial statements. Therefore disclosures required by AS 17 are given in the consolidated financial statements.

1.06 Related party disclosures

Names of related parties and related party relationship Subsidiaries

a) Lancor Maintenance & Services Limited

b) Lancor Realty Limited

c) Lancor Guduvanchery Developments Limited

d) Lancor Egatoor Developments Limited

e) Lancor Sriperumbudur Developments Limited

f) Lancor GST Developments Limited

Joint Ventures

a) Central Park West Venture

Key Management Personnel (KMP) & relatives

a) R.V. Shekar

b) Sangeetha Shekar

c) Shwetha Shekar

d) Mallika Ravi

Related party transactions

The following table provides the total amount of transactions that have been entered into with related parties for the relevant financial year:

1.7 Contingent liabilities

a) The Arbitration proceeding on the "Menon Eternity" is still pending. In this regard the Company has made a claim of Rs. 9,98,47,408 while the land owners have made counter claim of Rs. 62,97,55,352, which the Company has refuted by filing the a rejoinder. As per the interim order dated October 20, 2010 of the sole arbitrator the Company has given possession of the area belonging to the land onwers on receipt of Rs. 4.82 Crores being refundable deposits from them along with the bank guarrantee of Rs. 1.66 Crores to the arbitrator. In view of the management, the claims are frivolous and are not sustainable. Accordingly the company does not acknowledge claims of the land owners.

b) The Company has certain dispute with a lessee which has arisen on termination of lease agreement by the lessee within the lock in period. In terms of the lease agreement the Company has forfeited the deposit amount. The lessee has demanded refund of rental deposit of Rs. 2,18,35,938 along with interest and damages amounting to Rs. 2,55,78,957. The Hon''ble High court of Madras has not granted interim injunction in respect to interim application filed by the lessee. Aggrived by the order of the single judge , the lessee has filed an appeal before the larger bench and same is pending. Further the main suit is also pending. In view of the management, the claim of lessee is not sustainable and accordingly, claims are not acknowledged as debt.

c) Other claims other than the details as mentioned above for a leases not acknowledged as debt is Rs.45,04,320 (excluding interest). The Company has furnished a bank guarrantee in this regard.

d) In pursuance to the increased demand on premium FSI and OSR charges by the Chennai Metropolitan Development Authority (CMDA) over and above the normal FSI charges paid by the Company as per the guideline value prevailing at the time of filing the application with respect to one of the project, the Company has filed a writ petition before the Hon''ble High Court of Madras. As per the interim direction of the Hon''ble court the differential amount of Rs. 74,84,000 has been furnished by way of a bank guarrantee and the matter is pending. In view of the management the increased demand is based revision in the gudieline value which was not prevailing at the time of initial approval, accordingly the claims are not acknowledged as debt.

1.8 Details of dues to micro and small enterprises as defined under the MSMED Act, 2006.

The Company is in the process of compiling the relevant information from its creditors about their coverage under Micro, Small and Medium Enterprises Development Act, 2006 (''MSMED''). None of the enterprises have responded till date regarding their status under the said Act.

1.9 Previous year figures

Previous year figures have been regrouped, reclassified and recasted whereever considered necessary so as to confirm with the current year''s figures.

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Mar 31, 2013

1.01 Notes on Scheme of Amalgamation with Lancor Projects Limited

a) Pursuant to the Scheme of Amalgamation in accordance with section 391 - 394 of the Companies Act, 1956 sanctioned by the High Court of Judicature of Madras vide their order dated May 17, 2013, Lancor Projects Limited (LPL) a wholly owned subsidiary of the Company in the business of property management has been amalgamated and all assets and liabilities are transferred to and vested in the Company with effect from April 1, 2012 (the Appointed Date).

b) During the transition period i.e. from the Appointed Date to the Effective Date i.e., May 20, 2013, LPL carried on the aforesaid business activities including all statutory compliances in "trust" in its own name but for and on behalf of the Company. The transactions carried out by LPL during the aforesaid period have been incorporated in the books of the Company on sanctioning of the said Scheme.

c) The said scheme has been given effect to in the accounts under the "Pooling of Interest Method" as prescribed by the Accounting Standard 14 on Amalgamation. Accordingly, all assets and liabilities as at April 1, 2012 have been recorded at their respective book values. All the employees and other rights, privileges, benefits attributable to the LPL have been transferred to and vested in the Company retrospectively with effect from April 1, 2012. Similarly, Contingent Liabilities as on the Appointed Date is disclosed.

d) In accordance with the Scheme, the Company''s existing investment in the equity share Capital of LPL amounting to Rs. 500,000 stands cancelled on amalgamation and the difference between the investment of the Company and the amount of share capital of the LPL has been adjusted in the reserves of the Company.

e) The Company is in the process of transferring the documents, agreements, title deeds for the properties, balance in staff benefit schemes etc. in its own name.

1.02 Gratuity beneft plans

(i) The Company has one defined benefit plan with respect to gratuity for its employees. Under the gratuity plan, every employee is entitled to a benefit equivalent to fifteen days salary last drawn for each completed year of service in line with the payment of Gratuity Act, 1972 and the same is payable at the time of separation from the Company or retirement whichever is earlier.

(ii) The present value of the defined benefit obligations and the related current service cost were measured using the projected unit credit method, with actuarial valuation being carried out at each balance sheet date.

(iii) The following tables summarize the components of net benefit expense recognized in the statement of profit and loss and amounts recognized in the balance sheet for the respective plans.

1.03 Leases

Operating lease: Company as lessee

The Company has entered into commercial leases on office building. The lease has a life of five years with renewal option included in the contracts. There are no restrictions placed upon the Company by entering into these leases. Rental expenses debited to Statement of profit & loss amounting to Rs.39,36,014 (March 31, 2012: Rs.26,67,817).

Operating lease: Company as lessor

The Company has entered into commercial property leases on its constructed premises. These non- cancellable leases range for a period between three and nine years. Most of the leases are renewable for a further period on mutually agreeable terms and also include escalation clauses.

1.04 Interest in a joint venture

In compliance with the Accounting Standard relating to ''Financial Reporting of Interest in Joint Ventures'' (AS 27), as prescribed in the Companies Accounting Standard Rules, 2006, the Company has interest in a jointly controlled entity (Partnership Firm)

The Company holds 100% interest in Central Park West Venture(firm), a jointly controlled entity which is involved in construction and sale of residential properties.(Refer note No 2.10)

The Company''s share of the assets, liabilities, revenues and expenses of the jointly controlled entity for the year ended March 31, 2013 ( March 31, 2012) are as follows: (before inter Company elimination)

1.05 Segment information

As permitted by paragraph 4 of Accounting Standard -17 (AS 17), ''Segment Reporting'', as prescribed in the Companies Accounting Standard Rules, 2006 if a single financial report contains both consolidated financial statements and the separate financial statements of the parent, segment information need be presented only on the basis of the consolidated financial statements. Therefore disclosures required by AS 17 are given in the consolidated financial statements.

1.06 Related party disclosures

Names of related parties and related party relationship Subsidiaries

a) Lancor Maintenance & Services Limited

b) Lancor Realty Limited

c) Lancor Guduvanchery Developments Limited

d) Lancor Egatoor Developments Limited

e) Lancor Sriperumbudur Developments Limited

f) Lancor GST Developments Limited

Joint Ventures

a) Central Park West Venture

Key Management Personnel (KMP) & Relatives

a) R.V. Shekar

b) Sangeetha Shekar

c) Shwetha Shekar

d) Mallika Ravi

1.07 Contingent liabilities

a) The Arbitration proceeding on the "Menon Eternity" project is pending, where the Company has made a claim of Rs. 9,98,47,408, while the land owners have made counter claim of Rs. 62,97,55,352, which the Company has refuted by filing a rejoinder. As per the interim order dated 20.10.2010 of sole arbitrator the Company has given the possession of the area belonging to the land owners on receipt of Rs.4.82 Crores being refundable deposits from them along with the bank guarantee of Rs.1.66 crores to the Arbitrator. In view of the managment, the claims are frivolous and are not sustainable, accordingly the claims are not acknowledged as debt.

b) The Company has certain dispute with a lessee which has arisen on termination of lease agreement by the lessee within the lock in period. In terms of the lease agreement the Company has forfeited the deposit amount. The lessee has demanded refund of rental deposit of Rs. 2,18,35,938 along with interest and damages amounting to Rs. 2,55,78,957. The Hon''ble High Court of Madras has not granted the interim application filed by the lessee and has dismissed the same. However, the main suit is pending. Aggrieved by the order of the single Judge, the lessee has filed an appeal before the larger bench and the same is pending. In view of the management, the claim of lessee is not sustainable and accordingly, claims are not acknowledged as debt.

c) Other claims other than the details as mentioned above for a leases not acknowledged as debt is Rs. 24,99,898.

1.08 Details of dues to micro and small enterprises as def ned under the MSMED Act, 2006

The Company has not received any relevant information from its creditors about their coverage under Micro, Small and Medium Enterprises Development Act, 2006 (''MSMED''). Accordingly no disclosure is made u/s 22 of the Act.

1.09 Previous year fgures

Previous year figures have been regrouped, reclassified and recast wherever considered necessary so as to confirm with the current year''s figures.

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Mar 31, 2012

1.01 Corporate information

Lancor Holdings Limited (the Company) is a public Company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on one stock exchange in India. The Company is engaged in construction and sale of residential properties, construction and leasing of commercial properties.

1.02 Basis of preparation

These financial statements have been prepared in accordance with the generally accepted accounting principles in India under the historical cost convention on accrual basis. These financial statements have been prepared to comply in all material aspects with the accounting standards notified under Section 211(3C) [Companies (Accounting Standards) Rules, 2006, as amended] and the other relevant provisions of the Companies Act, 1956.

All assets and liabilities have been classified as current or non-current as per the Company's normal operating cycle and other criteria set out in the Revised Schedule VI to the Companies Act, 1956 notified by MCA vide its notification no. 447(E) dated February 28, 2011. Based on the nature of products and the time between the acquisition of assets for processing and their realisation in cash and cash equivalents, the Company has ascertained its operating cycle as less than 12 months for the purpose of current - non current classification of assets and liabilities.

The accounting policies adopted in the preparation of financial statements are consistent with those of previous year.

a. Rights, preference and restrictions attached to shares: Equity shares

The Company has only one class of equity shares having a par value of Rs.2 per share. Each holder of equity shares is entitled to one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend.

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 in proportion to the number of equity shares held by the share holders.

During the year March 31, 2012, the amount of dividend per share recognised as distribution to equity shareholder was Rs.2 (March 31, 2011: Rs.2).

2.01 Gratuity benefit plans

(i) The Company has one defined benefit plan with respect to gratuity for its employees. Under the gratuity plan, every employee is entitled to a benefit equivalent to fifteen days salary last drawn for each completed year of service in line with the payment of Gratuity Act, 1972 and the same is payable at the time of separation from the Company or retirement which ever is earlier.

(ii) The present value of the defined benefit obligations and the related current service cost were measured using the projected unit credit method, with actuarial valuation being carried out at each balance sheet date.

(iii) The following tables summarize the components of net benefit expense recognized in the statement of profit and loss and amounts recognized in the balance sheet for the respective plans.

The estimates of future salary increases considered in actuarial valuation takes in to account of inflation, seniority, promotions and other relevant factors, such as supply and demand in the employment market.

2.02 Leases

Operating lease: Company as lessee

The Company has entered into commercial leases on office building. The lease has a life of five years with renewal option included in the contracts. There are no restrictions placed upon the Company by entering into these leases. Rental expenses debited to statement of profit & loss account amounted to Rs 26,67,817 (March 31, 2011: Rs 25,95,042)

Operating lease: Company as lessor

The Company has entered into commercial property leases on its constructed premises. These non-cancellable leases range for a period between three to nine years. Most of the leases are renewable for a further period on mutually agreeable terms and also include escalation clauses.

2.03 Interest in a joint venture

In compliance with the Accounting Standard relating to 'Financial Reporting of Interest in Joint Ventures' (AS 27), as prescribed in the Companies Accounting Standard Rules, 2006, the Company has interest in a jointly controlled entity (Partnership Firm)

The Company holds 93.23 % interest in Central Park West Venture(firm), a jointly controlled entity which is involved in construction and sale of residential properties.

The Company's share of the assets, liabilities, revenues and expenses of the jointly controlled entity for the year ended March 31, 2012 (PY March 31, 2011) are as follows: (before inter Company elimination)

a) The share of contingent liability of the Company for which it is contingently liable in relation to its interest in the partnership firm is Rs. 10,02,000.

b) The Company has not entered in to any capital commitments in relation to its interest in the partnership firm.

2.04 Segment information

As permitted by paragraph 4 of Accounting Standard -17 (AS 17), ' Segment Reporting', as prescribed in the Companies Accounting Standard Rules, 2006 if a single financial report contains both consolidated financial statements and the separate financial statements of the parent, segment information need be presented only on the basis of the consolidated financial statements. Therefore disclosures required by AS 17 are given in the consolidated financial statements.

2.05 Related party disclosures

Names of related parties and related party relationship Subsidiaries

a) Lancor Maintenance & Services Limited

b) Lancor Realty Limited

c) Lancor Projects Limited

d) Lancor Guduvanchery Developments Limited

e) Lancor Egatoor Developments Limited

f) Lancor Sriperumbudur Developments Limited

Joint Ventures

a) Central park West Venture Key Management Personnel (KMP) & relatives

a) R.V. Shekar

b) Sangeetha Shekar

c) Shwetha Shekar

Related party transactions

The following table provides the total amount of transactions that have been entered into with related parties for the relevant financial year:

2.6 Contingent liabilities

a) The Arbitration proceeding on the "Menon Eternity" is still pending. It appears that the respective counsel will conclude the final arguments within the next one month. The company had completed the construction of the building as per the terms of Joint Development Agreement and the owners have taken possession of their share. Informatively the owners have also leased their share to various private parties. As stated in the previous report a part of the amount due to the company has been paid by the owners as per orders of the Arbitration court and the company is waiting the judgment of the Arbitration court to receive the balance. The company therefore feels that the claims of the land owner are perplex and unsustainable. Accordingly the company does not acknowledge claims of the land owners.

b) (i) The Company has certain dispute with a lessee which has arisen on termination of lease agreement by the lessee within the lock in period. In terms of the lease agreement the Company has forfeited the deposit amount. The lessee has demanded refund of rental deposit of Rs. 2,18,35,938 along with interest and damages amounting to Rs. 2,55,78,957. The Hon'ble High court of Madras has not granted interim injunction to the lessee and the matter is pending. In view of the management, the claim of lessee is not sustainable and accordingly, claims are not acknowledged as debt.

c) Other claim other than the details as mentioned above for a leasees not acknowledged as debt is Rs. 17,06,120

2.7 Details of dues to micro and small enterprises as defined under the MSMED Act, 2006

The Company is in the process of compiling the relevant information from its creditors about their coverage under Micro, Small and Medium Enterprises Development Act, 2006 ('MSMED'). None of the enterprises have responded till date regarding their status under the said Act.

Note: No loans has been granted by the Company to any person for the purpose of investing in the shares of Lancor Holdings Limited or any of its subsidiaries.

2.8 Previous year figures

Till the year ended March 31, 2011, pre-revised Schedule VI to the Companies Act 1956 was being used for preparation and presentation of financial statements. During the year ended March 31, 2012, the revised Schedule VI notified under the Companies Act 1956, has become applicable to the company. Accordingly, the Company has reclassified previous year figures to confirm to this year's classification. On adoption of the revised Schedule VI, there has been no significant impact on recognition and measurement principles followed for preparation of financial statements.

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Mar 31, 2011

1. Certain disputes have arisen with the owners of land with whom the Company has entered into a joint venture agreement in respect of Menon Eternity Project. The land owners have filed criminal complaint before the Metropolitan Magistrate against the Company, the Managing Director and certain officials of the Company. The Madras High Court has stayed the matter. The land owners have also filed a civil suit and interim applications. The Madras High Court has dismissed all the interim applications and the main suit is pending. The High Court has appointed single retired judge of the Madras High Court as the sole Arbitrator. The Company has made claim of Rs. 99,847,408 while the land owners has made a counter claims aggregating to Rs. 629,755,353 which has been refuted by the Company by filing a rejoinder. Subsequently as per the interim order of the sole Arbitrator the Company has given the possession of area belonging to the land owners on receipt of Rs.4.82 crores being refundable deposits from them along with a bank guarantee of Rs.1.66 crores to be deposited with Arbitrator and the matter is pending. In view of the management, the claims of the land owners are frivolous and are not sustainable. Accordingly claims are not acknowledged as debts.

2. CONTINGENT LIABILITIES

a) Outstanding Letter of Credit Rs. Nil. (Previous year Rs. Nil)

b) Claims against the Company not acknowledged as debt is Rs.Nil (Previous year Rs.Nil)

3. Capital commitment - Nil (Previous Year Nil)

4. The Company is in the business of Property Development. The details required to be disclosed as per para 4C and para 4D of Part II of the Companies Act, 1956 have been furnished to the extent applicable to the Company:

6. The Company is in the process of compiling the relevant information from its creditors about their coverage under Micro, Small and Medium Enterprises Development Act, 2006 (MSMED). None of the enterprises have responded till date regarding their status under the said Act.

7. EMPLOYEE BENEFITS

The present value of the defined benefit obligations and the related current service cost were measured using the Projected Unit Credit Method, with actuarial valuations being carried out at each balance sheet date. The following table provides the disclosures in accordance with Revised AS 15 for the year ended and as at March 31, 2011.

8. Borrowing costs amounting to Rs. 23,586,411 (Previous Year - Rs. 25,186,282) have been capitalized as part of respective qualifying assets.

9. SEGMENT REPORTING

As permitted by paragraph 4 of Accounting Standard-17 (AS - 17), Segment Reporting, if a single financial report contains both consolidated financial statements and the separate financial statements of the parent, segment information need be presented only on the basis of the consolidated financial statements. Therefore, disclosures required by AS 17 are given in consolidated financial statements.

11. RELATED PARTY DISCLOSURES

As per the Accounting Standard 18 Related Party Disclosures, issued by the Institute of Chartered Accountants of India, the Companys related parties and transactions are disclosed below:

A. Under the control of the Company:

1. Subsidiaries: a) Lancor Maintenance & Services Limited

b) Lancor Realty Limited

c) Lancor Projects Limited

d) Lancor Guduvanchery Developments Limited

2. Joint Ventures a) Central park West Venture

12. Leases

In the Capacity as a Lessor

a) The significant lease arrangements in terms of AS 19 entered into by the Company are in respect of constructed premises which have been given on rental and office premises which have been taken on lease.

12. Leases

In the Capacity as a Lessor

b) The Cost of building includes buildings given on lease estimated at Rs.433,542,231 (previous year Rs. 433,325,606) and Accumulated Depreciation Rs.25,527,337(previous year Rs. 18,365,420). There is no impairment in respect of these assets.

c) The Cost of other assets given on lease is given below. There is no impairment in respect of these assets.

In the Capacity as a Lessee

Rental Expenses debited to Profit & Loss Account amounted to Rs. 2,545,042(Previous Year - Rs. 2,694,022).

14. DEFERRED TAX ASSETS / (LIABILITIES) (NET)

Pursuant to Accounting Standard 22 ~ "Accounting for Taxes on Income" as prescribed in Companies Accounting Standard Rules, 2006, the Company has recorded the cumulative net Deferred Tax Asset as at 31st March 2011 of Rs. 1,980,083 and Rs.398,898 has been debited to the profit & Loss account.

16. In compliance with the Accounting Standard relating to Financial Reporting of Interest In Joint Ventures (AS 27), as prescribed in Companies Accounting Standard Rules, 2006, the Company has interest in a jointly controlled entity (Partnership Firm).

As stated above, the Company is also partner in one partnership firm which is formed in India.

Financial interest of the Company in the jointly controlled entities is as under, (before inter Company eliminations)

17. Disclosure as required by clause 32 of listing agreement with the stock exchange

Note: No loans have been granted by the Company to any person for the purpose of investing in the shares of the Lancor Holding Limited or any of its subsidiaries.

18. Previous years figures have been regrouped, reclassified and recast wherever considered necessary so as to confirm with the current years figures.

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Mar 31, 2010

1. Certain disputes have arisen with the owners of land with whom the Company has entered into a joint venture agreement in respect of Menon Eternity Project. The land owners have filed criminal complaint before the Metropolitan Magistrate against the Company, the Managing Director and certain officials of the Company. The Madras High Court has stayed the matter. The land owners have also filed a civil suit and interim applications. The Madras High Court has dismissed all the interim applications and the main suit is pending. The High Court has appointed single retired judge of the Madras High Court as the sole Arbitrator. The Company has made claim of Rs. 99,847,408 while the land owners has made a counter claims aggregating to Rs. 629,755,353 which has been refuted by the Company by filing a rejoinder and the matter is pending. In view of the management, the claims of the land owners are frivolous and are not sustainable. Accordingly claims are not acknowledged as debts.

2. CONTINGENT LIABILITIES

a) Outstanding Letter of Credit Rs. Nil. (Previous year Rs. Nil)

b) Claims against the Company not acknowledged as debt is Rs. Nil (P.Y — Nil)

3. Capital commitment — Nil (Previous Year Nil)

4. The Company is in the business of Property Development. The details required to be disclosed as per para 4C and para 4D of Part II of the Companies Act, 1956 have been furnished to the extent applicable to the Company:

5. The Company has circulated letter to all its suppliers requesting them to confirm whether they are covered under the Micro, Small and Medium Enterprises Act, 2006 (MSMED). None of the enterprises have responded till date regarding their status under the said Act and the confirmations are still awaited.

6. EMPLOYEE BENEFITS

The present value of the defined benefit obligations and the related current service cost were measured using the Projected Unit Credit Method, with actuarial valuations being carried out at each balance sheet date. The following table provides the disclosures in accordance with Revised AS 15 for the year ended and as at March 31,2010.

7. Borrowing costs amounting to Rs.25,137,232 (Previous Year — Rs. 63,281,883) have been capitalized as part of respective qualifying assets.

8. SEGMENT REPORTING

As permitted by paragraph 4 of Accounting Standard-17 (AS - 17), Segment Reporting, if a single financial report contains both consolidated financial statements and the separate financial statements of the parent, segment information need be presented only on the basis of the consolidated financial statements. Therefore, disclosures required by AS 17 are given in consolidated financial statements.

9. RELATED PARTY DISCLOSURES

As per the Accounting Standard 18 Related Party Disclosures, issued by the Institute of Chartered Accountants of India, the Companys related parties and transactions are disclosed below:

A. Under the control of the Company:

1. Subsidiaries: a) Lancor Maintenance & Services Limited

b) Lancor Realty Limited

c) Lancor Projects Limited

2. Joint Ventures a) Central park West Venture

10. LEASES

In the Capacity as a Lessor

a) The significant lease arrangements in terms of AS 19 entered into by the Company are in respect of constructed premises which have been given on rental and office premises which have been taken on lease. The Company has taken rent deposits equivalent to 12 to 15 months rent. These arrangements are cancelable in nature and are for initial period of 3 years or more and renewable based on mutual understanding.

b) The Cost of building includes buildings given on lease estimated at Rs. 433,325,606 (previous year Rs. 407,360,316) and Accumulated Depreciation Rs.18,365,420 (previous year Rs. 11,219,349). There is no impairment in respect of these assets.

11. In compliance with the Accounting Standard relating to Financial Reporting of Interest In Joint Ventures (AS 27), as prescribed in Companies Accounting Standard Rules, 2006, the Company has interest in a jointly con- trolled entity (Partnership Firm).

As stated above, the Company is also partner in one partnership firm which is formed in India.

12. Previous years figures have been regrouped, reclassified and recast wherever considered necessary so as to confirm with the current years figures.