Notes to Accounts of Prime Urban Development India Ltd.

Mar 31, 2024

Note (c) - Terms/Rights attached to equity shares The Company has only one class of equity shares having par value of Rs.2 per share. Each holder of equity shares is entitled to one vote per share.

Note (d) - There was no issue of shares alloted as fully paid up pursuant to Contract(s) without payment being received in cash or buyback or bonus shares in the preceeding five years

Note (e) - Dividends proposed by the Board of Directors, if any is subject to approval of the Shareholders in the Annual General Meeting, except in case of interim Dividend.

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

Note (g): The Company has not converted any securities in to equity shares

Note (h): The call unpaid is Nil

Note (i): Forfeited shares is Nil

21.03: Other Notes

a. In the opinion of the management, assets other than property, plant and equipment and non-current investments have a value on realization in the ordinary course of business at least equal to the amount at which they are stated.

b. The accounts of certain Trade Receivables, Trade Payables, Loans & Advances and Banks are however, subject to formal confirmations/reconciliations and consequent adjustments, if any. The management does not expect any material difference affecting the current period''s financial statements on such reconciliation/adjustments.

21.04: Relationship with Struck off Companies:

The Company has not entered into any transactions with companies struck off under Section 248 of the Companies Act, 2013 or Section 560 of Companies Act, 1956.

a. Defined Benefit plan :

Gratuity:

In accordance with the applicable laws, the Company provides for gratuity, a defined benefit retirement plan (“The Gratuity plan”) covering eligible employees. The Gratuity plan provides for a lump sum payment to vested employees on retirement (subject to completion of five years of continuous employment), death, incapacitation or termination of employment that are based on last drawn salary and tenure of employment. Liabilities with regard to the Gratuity Plan are determined by actuarial valuation on the reporting date and the Company makes annual contribution to the gratuity fund administered by Life Insurance Corporation of India under the respective scheme.

(figures in bracket represent figures for the previous year)

Note 1 &2 : During the previous year two subsidiary companies, viz., ATL Textile Processors Ltd and Newline Buildtech P Ltd have gone under the process of Merger through NCLT route. The scheme of Amalgamation was approved by the Members of the Company in the EGM held on 19.01.2024. The company has filed petition with the Honb''le NCLT Chennai Bench seeking approval of the Scheme.

Note 3: During the financial year 2023-24, the amount outstanding with the wholly owned subsidiary company, Manoj Yarn Processors, was written off consequent to the subsidiary company having applied for name strike off process with ROC. The Diminution in value of investment have been fully provided for in earlier year.

Figures in bracket represent figures for the previous year.

b. The Company has taken premise under cancellable operating lease. These lease agreement is normally renewed on expiry. The rental expenditure is accounted for in statement of Profit and Loss of the Company in accordance with Ind AS 17 on lease transactions.

21.12: Capital Management Note:

Capital Management Risk:

The Company''s aim to manage its capital efficiently so as to safeguard its ability to continue as a going concern and to optimize returns to shareholders.

The capital structure of the Company is based on management''s judgment of the appropriate balance of key elements in order to meet its strategic and day-to-day needs. The Company considers the amount of capital in proportion to risk and manages the capital structure in light of changes in economic conditions and the risk characteristics of the underlying assets. In order to maintain or adjust the capital structure, the company may adjust the amount of dividends paid to shareholders, return capital to shareholders or issue new shares.

The Company policy is to maintain a stable and strong capital structure with a focus on total equity so as to maintain investor, creditors and market confidence and to sustain future development and growth of its business. The company will take appropriate steps in order to maintain, or if necessary adjust, its capital structure.

The key objective of the Company''s capital management is to ensure that it maintain a stable capital structure with the focus on total equity to uphold investor, creditor and customer confidence and to ensure future developments of the business. The company is focused on maintaining a strong equity base to ensure independence, security as well as finance flexibility for potential future borrowings, if required, without impacting the risk profile of the Company.

21.13 Disclosure with regard to liquidity risk showing details of contractual cash outflow, Interest rate sensitivity, fair value matrix as per Ind AS

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

The Company is hardly much exposed to market risk, interest rate risk, credit risk and liquidity risk. The Company’s risk management is carried out by a corporate finance team under the policies approved by the Board of Directors under the broad parameters;

i) Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument may fluctuate due to change in market price. The value of financial instruments may change as result of change in interest rates and other market changes that affect market risk sensitive instruments. Market risk is attributable to all market risk sensitive financial instruments including payable, deposits, loans & borrowings. The Company management evaluates and exercise control over process of market risk management. The Board recommends risk management objective and policies which includes management of cash resources, borrowing strategies and ensuring compliance with market risk limits and policies The Company assumes that the sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective market risks. This is based on the financial assets and financial liabilities held at 31 March 2024 and 31 March 2023.

ii) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company’s exposure to the risk of changes in market interest rates relates primarily to the Company’s long-term debt obligations with interest rates.

The Company manages its interest rate risk by having a portfolio of loans and borrowings. In order to optimize the Company’s position with regards to interest income and interest expense, the Company performs a comprehensive corporate interest rate risk by using different type of economic product of floating rate of borrowings in its total portfolio.

Interest rate sensitivity

In view of any inadequate expose to disruptive borrowings, there is hardly any possible change in interest rates on that portion of borrowings. With all other variables held constant, the companies profit before tax is hardly affected through the impact on interest rate borrowings

iii) Credit Risk

Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. Trade receivables are typically unsecured and are derived from revenue earned from customers located in India. Credit risk has always been managed by the company through continuously monitoring the creditworthiness of customers to which the company grants credit terms in the normal course of business. Accordingly in terms of Ind AS 109, the company does not foresee any expected credit loss.

The company has not disclosed the fair value of inventories, trade receivables, cash and cash equivalents, and trade payables because their carrying amounts are a reasonable approximation of fair value.

The Company maintains exposure in cash and cash equivalents and term deposits with banks. The Company has investment with a Mutual Fund which has a good track record and reputation and hence there is hardly any risk to be reported. The Company assumes that the sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective market risks. This is based on the financial assets and financial liabilities held at 31 March 2024 and 31 March 2023.

Trade receivables and other financial assets

Trade receivables are typically unsecured and are derived from revenue earned from customers. Other financial assets are security deposits. Credit risk has been managed by the Company through continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business. On account of adoption of Ind AS 109, the Company does not foresee any expected credit loss model to assess the impairment loss or gain. The company uses a provision matrix and forward looking information and an assessment of the credit risk over the expected life of the financial asset to compute the expected credit loss allowance for trade receivables. There are no significant credit risks pertaining to financial assets.

iv) Liquidity risk

Prudent liquidity risk management implies maintaining sufficient cash and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due. Due to the dynamic nature of the underlying businesses, company''s finance team maintains flexibility in funding by maintaining availability under committed credit lines.

21.14 There are no proceedings initiated or pending against the Company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988)

21.15 There is no any immovable property having title deeds not held in the name of the company.

21.16 Disclosure on PPE & Intangible Assets

(1) There is no restriction on the title of Property, Plant and Equipment and Property, Plant & Equipment was not pledged against any liabilities.

(2) Company has not constructed any item in Property, Plant & equipment.

(3) Company has no contractual commitments for the acquisition of Property, Plant & Equipment.

(4) Company has no Impairment loss during the year for Property, Plant & Equipment.

(5) Company has not revalued any items of Property, Plant & Equipment''s during the Year

(6) Carrying amount of Property, Plant & Equipment are not retired from active use and not held for disposal.

(7) The existence and carrying amounts of intangible assets whose title is not restricted and the carrying amounts of intangible assets are not pledged as security for liabilities

21.17 The company has not granted any loans or advances in the nature of loans to promoters, directors, KMPs and the related parties during the year under review.

21.18 The company has not borrowed any money from banks or financial institutions on the security of current assets during the year under review and hence disclosure requirement in this regard does not apply to the company.

21.19 The company has not been declared willful defaulter by any bank or financial institution or government or any government authority or any other lender.

21.20 The company does not have any charge or satisfaction yet to be registered with the Registrar of Companies (ROC) beyond the statutory period.

21.21 The company has complied with the number of layers prescribed under clause (87) of section 2 of the Companies Act, 2013 read with Companies (Restrictions on number of Layers) Rules, 2017.

21.22 The company has not advanced or loaned or invested funds to any other person(s) or entity(is), including foreign entities (intermediaries) with the understanding that the intermediary shall:

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

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

21.23 The company has not received any funds from any person(s) or entity(is), including foreign entities (Funding party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

(i) 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

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

21.24 There were no transactions relating to previously unrecorded income that have been surrendered and disclosed as income during the year in the tax assessments under the Income Tax Act, 1961

21.25 Company shall not be required to comply with Corporate Social Responsibility (CSR) as provisions of section 135 of the Companies Act, 2013 is not applicable.

21.26 The company has not traded or invested in crypto currency or virtual currency during the financial year.

21.27 The Company has not declared any dividend to shareholders during the year.

21.28 The figures have been rounded off to the nearest rupees in Lakhs in compliance with Schedule III to Companies Act, 2013.

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Mar 31, 2017

Note 1(a) - The Company has only one class of equity shares having par value of Rs.2 per share. Each holder of equity shares is entitled to one vote per share.

Note (b)- There was no issue of shares alloted as fully paid up pursuant to Contarct(s) without payment being received in cash or buyback or bonus shares in the preceeding five years.

(b) Capital work in progress : Rs. 45.63 lacs spent on villa no. 6 Purchased by the Company.

Notes :

2. Vehicle acquired on Hire-Purchase basis amounting to Rs. 203.78 lacs and Net Block amounts to Rs.127.64 lacs

3. Reduction in Land includes reduction of proportionate Business Reconstruction Reserve of Rs.2,617.96 lacs due to Sale/Transfer of Land during the year

Notes :

4. Vehicle acquired on Hire-Purchase basis amounting to Rs.192.72 lacs and Net Block amounts to Rs.143.03 lacs

5. Reduction in Land includes reduction of proportionate Business Reconstruction Reserve of Rs.11,626.18 lacs due to Sale/Transfer of Land during the year

6. a. In the opinion of the management, assets other than fixed assets and non-current investments have a value on realization in the ordinary course of business at least equal to the amount at which they are stated.

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

7. Employee Benefit Plans :

Defined contribution plans :

The company contributed to Provident Fund to defined contribution plans for qualifying employees. Under the Scheme, the Company is required to contribute a specified percentage of the payroll cost to fund benefits.

Notes: i. The entire Plan Assets are managed by LIC

ii. The expected return on Plan Assets is as furnished by LIC

iii. The estimate of future salary increase takes in to account inflation, likely increments, promotions and other relevant factors.

Notes:

1. The related parlies have been identified by the Management and relied upon by the auditors.

2. No amount has been provided for/written off/written back, pertaining to related parties.

3. Figures in bracket represent previous year''s figures.

8. Consolidated Financial Statements :

As per Accounting Standard 21 on “Consolidated Financial Statements” and Accounting Standard 23 on “ Accounting for Investments in Associates in Consolidated Financial Statements” notified under the “The Companies Accounting Standards Rules, 2006” the company has presented Consolidated Financial Statements separately, in this annual report.

9. Previous year’s figures are re-grouped/reclassified, wherever necessary inter-alia to conform to current year’s presentation.

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Mar 31, 2016

1. Vehicle acquired on Hire-Purchase basis amounting to Rs. 192.72 lacs (Previous year Rs.92.48 lacs) and Net Block amounts to Rs.145.06 lacs (Previous year Rs.84.78 lacs)

2. Reduction in land Includes reduction of proportionate business reconstruction value is Rs. 11,626,13 lacs (Previous year Rs. 1.091.32 lacs) due to sale I transfer of land during the year.

3. Figures in brackets represents previous year''s figures.

4. a. In the opinion of the management, assets other than fixed assets and non-current investments have a value on realization in the ordinary course of business at least equal to the amount at which they are stated.

b. The accounts of certain Trade Receivables, Trade Payables, Loans & Advances and Banks are however, subject to formal confirmations/reconciliations and consequent adjustments, if any. The management does not expect any material difference affecting the current period''s financial statements on such reconciliation/adjustments.

5. Employee Benefit Plans :

Defined contribution plans:

The company contributed to Super annuation and Provident Fund to defined contribution plans for qualifying employees. Under the Scheme, the Company is required to contribute a specified percentaqe of the payroll cost to fund benefits. . ,

Notes: i. The entire Plan Assets are managed by LIC

ii. The expected return on Plan Assets is as furnished by LIC

iii. The estimate of future salary increase takes in to account inflation, likely increments, promotions and other relevant factors.

6. Consolidated Financial Statements :

As per Accounting Standard 21 on “Consolidated Financial Statements” and Accounting Standard 23 on “ Accounting for Investments in Associates in Consolidated Financial Statements” notified under the “The Companies Accounting Standards Rules, 2006” the company has presented Consolidated Financial Statements separately, in this annual report.

7. Previous year’s figures are re-grouped/reclassified, wherever necessary inter-alia to conform to current year’s presentation.

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Mar 31, 2015

Note 1

Additional information to the financial statements

01. Contingent liabilities and commitments As at 31st As at 31 st March, 2015 March. 2014

a. Contingent liabilities (to the extent not provided for) Disputed Tax Demands (Including Interest up to the date of demand)

(a)SalesTax : 11.58 11.58

The Sales tax liabilities of Rs.4.87 lacs is related to issue of 'C' form during 1997-98. Sales Tax Appellate Tribunal issued order in favour of Company and asked Department to verify the material facts of the case. Case not yet taken up by the department

B)Income Tax 743.09 743.09 (Tax deposits Rs.207.48 lacs pr.yr.207.48 lacs) The Income Tax liability for AY 2009-10 for Rs.551.09 lacs is under appeal before the Hon'ble Madras High Court and the High Court has given stay against the order of Income Tax Appellate Tribunal and collection of demand.

b. Commitments Other money for which the company is contingently liable; Export Documen- 1,056.91 1,079.15 tatry bills discounted with Bank (Since Realized- Rs.243.75 lacs Previous year Rs.410.80 lacs)

02. a. In the opinion of the management, assets other than fixed assets and non-current investments have a value on realization in the ordinary course of business at least equal to the amount at which they are stated. -

b. The accounts of certain Trade Receivables, Trade Payables, Loans & Advances and Banks are however, subject to formal confirmations/reconciliations and consequent adjustments, if any. The management does not expect any material difference affecting the current period's financial statements on such reconciliation/adjustments. /

3. Segment Information:

List of Related Parties and nature of relationships:

Wholly owned subsidiaries :

ATL Textile Processors Limited

Manoj Yarn Processors Limited

Pee Dee Yarn Processors Limited

Patodia Developers Pvt Ltd

With whom transactions have been entered in to :

(i) Associates

Prime Developers

Prime New line AOP

Prime Mall Developers

Prime Hitech Admin Services LLP

Aadarsh Jann Aawaash Limited

(ii) Key Managerial Personnel

Mr. Purusottam Das Patodia Chairman and Managing Director

Mr. Manoj Kumar Patodia Vice Chairman and Managing Director

Mr. Anuj Patodia Managing Director

(iii) Enterprises having Common Key Management Personnel

Pat Credit Limited

Anjana Syntex Co. Limited

(iv) Relatives of Key Managerial Personnel

Mrs.lndiradevi Patodia Wife of Mr. Purusottam Das Patodia

Mrs.Nandita Patodia Wife of Mr. Manoj Kumar Patodia

Mrs.Meenal Patodia Wife of Mr.Anui Patodia

Notes:

1. The related parties have been identified by the Management and relied upon by the auditors.

2. No amount has been provided for/written off/written back, pertaining to related parties.

4. Consolidated Financial Statements:

As per Accounting Standard 21 on "Consolidated Financial Statements" and Accounting Standard 23 on " Accounting for Investments in Associates in Consolidated Financial Statements" notified under the "The Companies Accounting Standards Rules, 2006" the company has presented Consolidated Financial Statements separately, in this annual report.

5. Figures in bracket represent previous year's figures.

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Mar 31, 2014

Note 1(a) Equity Shares of more than 5% of Equity Shares are held by :

1(b)- There was no issue of shares alloted as fully paid up pursuant to Contarct(s) without payment being received in cash or buyback or bonus shares in the preceeding five years. -

1 (c) - The Company has only one class of equity shares having par value of Rs.2 per share. Each holder of equity shares is entitled to one vote per share.

1(d)- There is no change in the number of shares outstanding at the beginning and at the end of the year.

1(e) During the year, Company made preferential allotment of Share Warrants of 39,00,000 at Rs.5 per warrant with the option of converting each warrant into a Equity Share of Rs.2 each and the balance as Share Premium. The Promoters had subscribed 25% amounting to Rs.48.75 lacs of total subscription of Rs. 195.00 lacs and the balance amount to be contributed within 18 months i.e., before 28.04.2015

2. Employee Benefit Plans:

Defined contribution plans:

The company contributed to Superannuation and Provident Fund to defined contribution plans for qualifying employees. Under the Scheme, the Company is required to contribute a specified percentage of the payroll cost to fund benefits.

3. Disclosure in respect of related parties pursuant to Accounting Standard -18 (AS 18):- List of Related Parties and nature of relationships:

Wholly owned subsidiaries:

ATL Textile Processors Limited Manoj Yarn Processors Limited Pee Dee Yarn Processors Limited

With whom transactions have been entered in to:

(i) Associates

Aadarsh Jam Aawaash Limited Prime Developers

Prime Mall Developers

Prime New line AOP

Prime Hitech Admin Services LLP

(ii) Key Managerial Personnel

Mr. Purusottam Das Patodia Chairman & Managing Director Mr. Manoj Kumar Patodia Vice Chairman & Managing Director Mr. Anuj Patodia Managing Director

(iii) Enterprises having Common Key Management Personnel Pat Credit Limited

Anjana Syntex Co. Limited

(iv) Relatives of Key Managerial Personnel

Mrs.lndira Devi Patodia

wife of Mr. Purusottam Das Patodia

Mrs.Nandita Patodia

wife of Mr. Manoj Kumar Patodia

Mrs.Meenal Patodia

wife of Mr.Anuj Patodia

4 Consolidated Financial Statements:

As per Accounting Standard 21 on "Consolidated Financial Statements" and Accounting Standard 23 on "Accounting for Investments in Associates in Consolidated Financial Statements" notified under the "The Companies Accounting Standards Rules, 20,06" the company has presented Consolidated Financial Statements separately, in this annual report.

5. The exceptional items at the year end includes Share warrant expenses of Rs.4.77 lacs and Share of Loss from the Firm in which Company is a Partner with respect to Service Tax Liability of earlier years amounting to Rs.54.61 lacs.

6. Previous year''s figures are re-grouped/reclassified, wherever necessary inter-alia to conform to current year''s presentation.

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Mar 31, 2013

1a. In the opinion of the management, assets other than fixed assets and non-current investments have a value on realization in the ordinary course of business at leas! equal to the amount at which they are stated.

b. The accounts of certain Trade Receivables, Trade Payables, Loans & Advances and Banks are however, subject to formal confirmations/reconciliations and consequent adjustments, if any. The management does not expect any material difference affecting the current period''s financial statements on such reconciliation/adjustments.

2 Consolidated Financial Statements :

As per Accounting Standard 21 on "Consolidated Financial Statements" and Accounting Standard 23 on ''Accounting for Investments in Associates in Consolidated Financial Statements" notified under the "The Companies Accounting Standards Rules. 2006" the company has presented Consolidated Financial Statements separately, in this annual report.

3. Previous year''s figures are re-grouped/reclassified, wherever necessary, inter-alia, to conform to current year''s presentation.

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Mar 31, 2011

Rs. in thousands Rs. in thousands

1) Contingent liabilities not provided for in respect of 31.03.2011 31.03.2010

(a) Disputed tax demands (including interest upto the date of demand)

i) Sales tax, etc. 1,007 1,007

ii) Incometax 7,612 7,612

Total 8,619 8,619

(b) Export documentary bills discounted with Bank 30,050 63,735 (since realized Rs. 24,560 thousands ; previous year Rs. 63,735 thousands)

2) Secured loans dealt in Schedule 3 of the Balance Sheet are secured as under: -

1. Hire purchase loans for purchase of vehicles are secured by hypothecation of respective vehicles.

2. Working capital advances (Both Funded and Non-funded) from bank are secured by hypothecation of current assets and further secured by way of second charge over the land belonging to an Associate Company and further guaranteed by three of the Directors of the Company.

3) Disclosure in respect of related parties pursuant to Accounting Standard -18 (AS 18):- List of Related Parties and nature of relationships:

i) Where control exists: (Wholly owned subsidiary companies):

ATL Textile Processors Limited

Manoj Yarn Processors Limited

Pee Dee Yarn Processors Limited

Prime Hometex Industries (India) Limited

ii) Other Parties with whom the Company has entered into transactions during the year:

a) Associates: -

Aadarsh Jann Aawaash Limited

Prime Developers

Prime Mall Developers

Prime-Newline AOP

b) Key Managerial Personnel

Mr. Purshottam Patodia, Chairman & Managing Director

Mr. Manojjkumar Patodia, Vice Chairman & Managing Director

Mr. Anujj K. Patodia, Managing Director

c) Enterprises having Common key Management Personnel

Pat Credit Limited

Anjana Syntex Co. Limited

d) Relatives of Key Managerial Personnel:

Mrs. lndiradevi Patodia, wife of Mr. Purushottam Patodia

Mrs. Nandita Patodia, wife of Mr. Manojjkumar Patodia

Mrs. Meenal Patodia, wife of Mr. Anujj K. Patodia

4) As per Accounting Standard 21 on "Consolidated Financial Statements" and Accounting Standard 23 on "Accounting for Investments in Associates in Consolidated Financial Statements" notified under Rules, the company has presented consolidated financial statements separately, in this annual report.

5) (a) In the opinion of the Board of Directors, the "Current Assets, Loans and Advances" have a value on realization in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet.

(b) Balance of certain Debtors, Creditors and Advances are yet to reconciled and confirmed. In the opinion of the Management the difference would be insignificant.

6) a) Land to an extent of 5.02 acres has been converted from fixed assets to business asset and held as Stock-in-trade (held for development). The resultant gain on such conversion has been recognized in the Profit and Loss account.

b) Land to an extent of 0.7442 acres has been conveyanced to the local authorities by way of gift for Open Space Reserve and for Road Widening in order to comply with conditions to obtain necessary approvals for construction of Villa.

c) An extent of 1.216 acres earmarked to M/s. Newline Buildtech Private Limited towards twenty five percent of Development Rights as per the terms of agreement.

d) The Scheme of arrangement presented Under Section 391 of the Companies Act, 1956 entered into between the Company and their Shareholders has been approved by the Hon'ble Judicature of Madras Court on 22nd September, 2010 (financial year 2009-10). As per the Scheme, the Business Reconstruction Reserve Account was created through an exercise of reinstatd value of immovable properties of the Company at their fair values.

Consequent to the conversion into stock in trade and transfer of land mentioned in paras a, b & c, a sum of Rs. 9,10,352 thousands has been reversed from the Business Reconstruction Reserve.

7) The company had invested to an extent of Rs.45,500 thousands in wholly owned Subsidiary Company Ms. Prime Hometex Industries (India) Limited incorporated in 2007 for pursuing the project for manufacture of Home Textile Products. However in the light of continued depressed conditions in the home textile market, further progress in the project could not be made. The management is however, hopeful of pursuing with the project after prevailing conditions improve. Accordingly no provision for diminution in the value thereof is considered necessary.

8) There is no tax liability on the profits earned after considering the provisions of the Income Tax Act, 1961 for the regular computation as well as Minimum Alternate Tax under section 115JB.

9) Disclosure in respect of Accounting Standard 15" Employees Benefits" notified in the Companies (Accounting Standards) Rule 2007:

Employee Benefit

The gratuity liability is funded by Life Insurance Corporation of India under Group Gratuity Cash Accumulation Scheme

10. Previous year's figures are re-grouped/re-arranged, wherever necessary to conform to this year/s presentation.

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Mar 31, 2010

Rs. in thousands Rs. in thousands

1) A) Contingent liabilities not provided for in respect of 31.03.2010 31.03.2009

(a) Disputed tax demands

i) Sales tax, cess etc. 1,007 1,007

ii) Incometax 7,612 7,612

Total 8,619 8,619

(b) Export documentary bills discounted with Bank 63,735 58,000 (since realized Rs.63,735 thousands previous year Rs. 37,144 thousands)

(c) Corporate Guarantee

i) ATL Textile Processors Limited subsidiary of the company 52,900 52,900 has given corporate guarantee to the working capital bankers of the company

ii) Manoj Yarn Processors Limited has given corporate 600 600 guarantee to the working capital bankers of the company

iii) Pee Dee Yarn Processors Limited has given corporate 400 400 guarantee to the working capital bankers of the company

2) Secured loans dealt in Schedule 3 of the Balance Sheet are secured as under: -

1. Hire purchase loans and terms loans for purchase of vehicles are secured by hypothecation of respective assets.

2. Working capital advances from bank are secured by hypothecation of current assets and further secured by way of second charge over the land belonging to an Associate Company and further guaranteed by three of the Directors of the Company.

3) Foreign Exchange transactions:

Amount of Foreign Exchange difference (net) credited in the Profit and Loss Account Rs.436 thousands [previous year (Rs.3,006) thousands

4) Disclosure in respect of related parties pursuant to Accounting Standard -18 (AS 18):- List of Related Parties and nature of relationships:

i) Where control exists: (Wholly owned subsidiary companies):

ATI Textile Processors Limited

Manoj Yarn Processors Limited

Pee Dee Yarn Processors Limited

Prime Hometex Industries (India) Limited

ii) Other Parties with whom the Company has entered into transactions during the year:

a) Associates:-

Aadarsh Jann Aawaash Limited ATLSelina Innerwear Private Limited Prime Developers Prime Mall Developers Prime-NewlineAOP

b) Key Managerial Personnel

Mr. Purshottam Patodia, Chairman & Managing Director

Mr. Manojjkumar Patodia, Vice Chairman & Managing Director

Mr. AnujjK.Patodia, Managing Director

c) Enterprises having Common key Management Personnel Pat Credit Limited

Anjana Syntex Co. Limited

d) Relatives of Key Managerial Personnel: Mrs.lndiradevi Patodia,wifeofMr. Purushottam Patodia Mrs. Nandita Patodia, wife of Mr. Manojjkumar Patodia Mrs.Meenal Patodia, wife of Mr.AnujjK. Patodia

5) As per Accounting Standard 21 on "Consolidated Financial Statements" and Accounting Standard 23 on "Accounting for Investments in Associates in Consolidated Financial Statements" notified under Rules, the company has presented consolidated financial statements separately, in this annual report.

6) (a) In the opinion of the Board of Directors, the "Current Assets, Loans and Advances" have a value on realization in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet. (b) Balance of certain Debtors, Creditors and Advances are yet to reconciled and confirmed. In the opinion of the Management the difference would be insignificant.

7) The Honble High Court of Madras vide its order 22nd September, 2010 approved a Scheme of Arrangement between the Company and its shareholders ("the Scheme"). The Scheme provides that with effect from 1st of April, 2009, the Appointed Date, a significant portion of Free hold Land, as the Company considers relevant and appropriate, will be reinstated at their respective fair values as determined by recognized valuers. Consequently, any adjustment on account of such reinstatement would be reflected in Business Reconstruction Reserve Account ("BRR") of the Company.

The Scheme further provides that the aggregate amount under the BRR created by way of reinstatement of Land and Building would be utilized, to the extent considered necessary and appropriate by the Board of Directors of the Company, from time to time, to adjust certain write off/impairment/diminution and other expenses as mentioned in the Scheme until the balance is available in the BRR account.

In terms of the Scheme, the Company had reinstated significant portion of its freehold land by creating Rs.24,74,868 thousands to the BRR and as per the Scheme, the BRR was further credited by an amount of Rs.54,000 thousands and Rs.65,000 thousands being the amounts standing to the credit of Securities Premium Account and Capital Redemption Account respectively as on 31st March, 2009. During the year, an amount of Rs. 64,615 thousands and Rs. 1,87,169 thousands were transferred from BRR to General Reserve and Profit and Loss account respectively. As per the Scheme, an aggregate amount Rs. 23,504 thousands was transferred from the BRR on account of the following expenses:

a) Amortised amount of VRS Compensation Rs.18,004 thousands

b) Exceptional / Extraordinary items Rs.5,500 thousands.

8) With Core business of the Company in textiles having been changed to the realty segment, the Company has changed its name as "Prime Urban Development India Limited" with effect from 5th July, 2010. ^-

9) The company had invested to an extent of Rs.45,500 thousands in wholly owned Subsidiary Company Ms.Prime Hometex Industries (India) Limited incorporated in 2007 for pursuing the project for manufacture of Home Textile Products. However in the light of continued depressed conditions in the home textile market and local problem thwarting efforts to acquire suitable lands, further progress in the project could not be made so far. The management is however, hopeful of pursuing with the project after prevailing conditions improve. Accordingly no provision for diminution in the value thereof is considered necessary.

10. Previous years figures are re-grouped/re-arranged, wherever necessary to conform to this year/s presentation.