Note 1: Corporate information

PARSVNATH DEVELOPERS LIMITED ("the Company") is a Company registered under the Companies Act, 1956. It was incorporated on 24 July, 1990. The Company is primarily engaged in the business of promotion, construction and development of integrated townships, residential & commercial complexes, multistoried buildings, flats, houses, apartments, shopping malls, IT parks, hotels, SEZ, etc.

Note 2: Significant Accounting Policies

a. Basis of accounting and brparation of financial statements

The financial statements of the Company have been brpared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards specified under Section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provisions of the Companies Act, 2013 ("the 2013 Act") / Companies Act, 1956 ("the 1956 Act"), as applicable. The financial statements have been brpared on accrual basis under the historical cost convention. The accounting policies adopted in the brparation of the financial statements are consistent with those followed in the brvious year, except for change in the accounting policy for debrciation (see note 45).

b. Use of estimates

The brparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in brparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognised in the periods in which the results are known/materialise.

c. Inventories

Inventory comprises completed property for sale and property under construction (work-in-progress).

i. Completed unsold inventory is valued at lower of cost and net realisable value. Cost is determined by including cost of land (including development  rights), internal development cost, external development charges, materials, services, related overheads and apportioned borrowing costs.

ii. Work-in-progress is valued at lower of cost and net realisable value. Cost comprises cost of land (including development rights), internal development cost, external development charges, materials, services, overheads related to projects under construction and apportioned borrowing costs.

d. Cash and cash equivalents (for purposes of Cash flow statement)

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term balances and highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

e. Cash flow statement

Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

f. Fixed assets

Fixed assets are carried at cost less accumulated debrciation. The cost of fixed assets comprises its purchase price, directly attributable expenditure on making the asset ready for its intended use, other incidental expenses and interest on borrowings attributable to acquisition or construction of qualifying fixed assets, up to the date the asset is ready for its intended use. Subsequent expenditure on fixed assets after its purchase/completion is capitalised only if such expenditure results in an increase in the future benefits from such assets beyond its brviously assessed standard of performance.

g. Capital work-in-progress

Projects under which tangible fixed assets are not ready for their intended use and other capital work-in-progress are carried at cost, comprising direct cost, related incidental expenses and attributable borrowing costs.

h. Pre-operative expenditure pending allocation

Pre-operative expenditure incurred in relation to construction of fixed assets in respect of projects which are yet to commence commercial operations pending allocation includes:

i. Incidental expenditure during construction period comprising payment to and provision for employees, professional fees and other directly attributable expenses pending allocation to fixed assets on completion of the Project.

ii. Borrowing costs net of interest income pending allocation to fixed assets on completion of the Project.

i. Debrciation

i. Debrciation on tangible fixed assets has been provided on the straight line basis as per the useful life brscribed in Schedule II to the Companies Act, 2013 except in respect of 'Shuttering and Scaffolding, in whose case the life of the assets has been assessed on technical advice, taking into account the nature of asset, the estimated usage of the asset, the operating conditions of the asset, past history of replacement, anticipated technology changes and maintenance support etc. Accordingly the useful life of the assets taken is as under:

j. Revenue recognition

i. Revenue from real estate projects including integrated townships is recognised on the 'Percentage of Completion Method' of accounting. Revenue is recognised, in relation to the sold areas only, on the basis of percentage of actual cost incurred thereon including land as against the total estimated cost of the project under execution subject to such actual costs being 30% or more of the total estimated cost. The estimates of saleable area and costs are revised periodically by the management. The effect of such changes to estimates is recognised in the period such changes are determined.

In accordance with Revised Guidance Note issued by the Institute of Chartered Accountants of India (ICAI), on 'Accounting for Real Estate Transactions (Revised 2012)', revenue recognition for all real estate projects commencing on or after 1 April, 2012 or where the revenue is recognised for the first time on or after 1 April, 2012, revenue is recognised on percentage of completion method if (a) Critical approvals for commencement of the project have been obtained (b) actual construction and development cost (excluding land cost) incurred is 25% or more of the estimated cost, (c) At least 25% of the saleable project area is secured by contracts or agreements with buyers and (d) At least 10% of the total revenue as per sales agreement or any other legally enforceable document are realised as at the reporting date. However, there was no such project during the year.

ii. In case of joint development projects, revenue is recognised to the extent of Company's percentage share of the underlying real estate development project.

iii. Revenue from sale of land without any significant development is recognised when the agreement to sell is executed resulting in transfer of all significant risk and rewards of ownership and possession is handed over to the buyer.

iv. Revenue from sale of development rights is recognised when agreements are executed.

v. Income from construction contracts is recognised by reference to the stage of completion of the contract activity at the reporting date of the financial statements. The related costs there against are charged to the Statement of profit and loss of the year. The stage of completion of the contract is measured by reference to the proportion that contract cost incurred for work performed up to the reporting date bears to the estimated total contract cost for each contract.

vi. Any expected loss on real estate projects or construction contracts is recognised as an expense when it is probable that the total cost will exceed the total revenue.

vii. The revenue on account of interest on delayed payment by customers and expenditure on account of compensation/penalty for project delays are accounted for at the time of acceptance/ settlement with the customers due to uncertainties with regard to determination of amount receivable/ payable.

viii. Income from licence fee is recognised on accrual basis in accordance with the terms of agreement with the sub-licensees.

ix. Income from rent is recognised on accrual basis in accordance with the terms of agreement with the lessee.

x. Income from maintenance charges is recognised on accrual basis.

xi. Interest income is recognised on accrual basis on a time proportion basis.

xii. Dividend income is recognised when the Company's right to receive dividend is established.

k. Cost of construction/development

Cost of construction/development (including cost of land/development rights) incurred is charged to the Statement of Profit and Loss based on the proportionate area in respect of which revenue is recognised as per policy in 'j' above. Adjustments, if required, are made on completion of the respective projects.

l. Unbilled receivables

Unbilled receivables rebrsent revenue recognised on 'Percentage of Completion Method' less amount due from customers as per payment plans adopted by them.

m. Foreign currency transactions and translations

i. Transactions in foreign currencies entered into by the Company are accounted at the exchange rates brvailing on the date of the transaction or at rates that closely approximate the rate at the date of the transaction.

ii. Foreign currency monetary items of the Company, outstanding at the balance sheet date are restated at the year-end rates. Non-monetary items of the Company are carried at historical cost.

iii. Exchange differences arising on settlement/ restatement of foreign currency monetary assets and liabilities of the Company are recognised as income or expense in the Statement of Profit and Loss.

n. Investments

Long-term investments are carried individually at cost less provision for diminution, other than temporary, in the value of such investments. Current investments are carried individually, at the lower of cost and fair value. Cost of investments include acquisition charges such as brokerage, fees and duties.

o. Employee benefits

Employee benefits include provident fund, employee state insurance scheme, gratuity and compensated absences.

i. Defined contribution plan

The Company's contribution to provident fund and employee state insurance scheme are considered as defined contribution plans and are charged as an expense based on the amount of contribution required to be made and when services are rendered by the employees.

ii. Defined benefit plan

For defined benefit plans in the form of gratuity, the cost of providing benefits is determined using the Projected Unit Credit method, with actuarial valuations being carried out at each balance sheet date. Actuarial gains and losses are recognised in the Statement of Profit and Loss in the period in which they occur. Past service cost is recognised immediately to the extent that the benefits are already vested and otherwise is amortised on a straight-line basis over the average period until the benefits become vested. The employee benefit obligation recognised in the Balance Sheet rebrsents the brsent value of the defined benefit obligation as adjusted for unrecognised past service cost.

iii. Short-term employee benefits

The undiscounted amount of short-term employee benefits expected to be paid in exchange for the services rendered by employees are recognised during the year when the employees render the service. These benefits include performance incentive and compensated absences which are expected to occur within twelve months after the end of the period in which the employee renders the related service. Cost of short-term compensated absences is accounted when employees render the services that increase their entitlement of future compensated absences.

iv. Long-term employee benefits

Compensated absences which are not expected to occur within twelve months after the end of the period in which the employee renders the related service are recognised as a liability at the brsent value of the defined benefit obligation as at the balance sheet date on the basis of actuarial valuation.

p. Borrowing cost

Borrowing costs include interest and amortisation of ancillary costs incurred. Costs in connection with the borrowing of funds to the extent not directly related to the acquisition of qualifying assets are charged to the Statement of Profit and Loss over the tenure of the loan. Borrowing costs, allocated to and utilised for qualifying assets, pertaining to the period from commencement of activities relating to construction / development of the qualifying asset up to the date of capitalisation of such asset are added to the cost of the assets.

Capitalisation of borrowing costs is suspended and charged to the Statement of Profit and Loss during extended periods when active development activity of the qualifying asset is interrupted.

q. Segment reporting

The Company identifies primary segments based on the dominant source, nature of risks and returns and the internal organisation and management structure. The operating segments are the segments for which separate financial information is available and for which operating profit / loss amounts are evaluated regularly by the executive Management in deciding how to allocate resources and in assessing performance.

r. Leases

Lease arrangements where the risks and rewards incidental to ownership of an asset substantially vest with the lessor are recognised as operating leases. Lease rentals under operating leases are recognised in the Statement of Profit and Loss on a straight-line basis over the lease term.

Assets given under operating leases are included in fixed assets. Lease income is recognised in the Statement of Profit and Loss on a straight line basis over the lease term. Costs, including debrciation are recognised as expense in the Statement of Profit and Loss.

s. Earnings per share

Basic earnings per share is computed by dividing the profit after tax by the weighted average number of equity shares outstanding during the year. Diluted earnings per share is computed by dividing the profit after tax as adjusted for dividend, interest and other charges to expense or income (net of any attributable taxes) relating to the dilutive potential equity shares, by the weighted average number of equity shares considered for deriving basic earnings per share and the weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity shares. Potential equity shares are deemed to be dilutive only if their conversion to equity shares would decrease the net profit per share from continuing ordinary operations.

t. Taxes on income

Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the applicable tax rates and the provisions of the Income Tax Act, 1961 and other applicable tax laws.

Deferred tax is recognised on timing differences, being the differences between the taxable income and the accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax is measured using the tax rates and the tax laws enacted or substantively enacted as at the reporting date. Deferred tax liabilities are recognised for all timing differences. Deferred tax assets are recognised for timing differences of items other than unabsorbed debrciation and carry forward losses only to the extent that reasonable certainty exists that sufficient future taxable income will be available

against which these can be realised. However, if there are unabsorbed debrciation and carry forward of losses, deferred tax assets are recognised only if there is virtual certainty supported by convincing evidence that there will be sufficient future taxable income available to realise the assets. Deferred tax assets and liabilities are offset if such items relate to taxes on income levied by the same governing tax laws and the Company has a legally enforceable right for such set off. Deferred tax assets are reviewed at each balance sheet date for their realisability.

Current and deferred tax relating to items directly recognised in reserves are recognised in reserves and not in the Statement of Profit and Loss.

u. Accounting for joint ventures

i. Jointly controlled operations - The Company's share of revenue, expenses, assets and liabilities are included in the financial statements as revenue, expenses, assets and liabilities respectively.

ii. Jointly controlled entities - The Company's investment in jointly controlled entities is reflected as investment and accounted for in accordance with the Company's accounting policy of Investments (see note 2 n above).

v. Impairment of assets

The carrying values of assets / cash generating units at each balance sheet date are reviewed for impairment. If any indication of impairment exists, the recoverable amount of such assets is estimated and impairment is recognised, if the carrying amount of these assets exceeds their recoverable amount. The recoverable amount is the greater of the net selling price and their value in use. Value in use is arrived at by discounting

the future cash flows to their brsent value based on an appropriate discount factor. When there is indication that an impairment loss recognised for an asset in earlier accounting periods no longer exists or may have decreased, such reversal of impairment loss is recognised in the Statement of Profit and Loss.

w. Provisions and contingencies

A provision is recognised when the Company has a brsent obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made. Provisions (excluding employee benefits) are not discounted to their brsent value and are determined based on the best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates. Contingent liabilities are disclosed in the Notes. Contingent assets are not recognised in the financial statements.

x. Service tax input credit

Service tax input credit is accounted for in the books in the period in which the underlying service received is accounted and when there is reasonable certainty in availing / utilising the credits.

y. Operating cycle

Based on the nature of products / activities of the Company and the normal time between acquisition of assets and their realisation in cash or cash equivalents, the Company has determined its operating cycle as 48 months for real estate projects and 12 months for others for the purpose of classification of its assets and liabilities as current and non-current

Note 31:

The Company has entered into concession agreements with Delhi Metro Rail Corporation Limited (DMRC) for various projects on Build-Operate-Transfer (BOT) basis. In two of such projects, the Company was unable to commercially utilise the properties due to (a) lack of clarity between DMRC and MCD with respect to authority for sanction of building plans for Tis Hazari Project; and (b) non-submission of certain documents by DMRC as required by the sanctioning authority for Netaji Subhash Place Project. In view of these delays, the Company has sought concessions from DMRC and has invoked the Arbitration clause of the respective concession agreements in case of these two projects.

In case of another project, viz. Welcome Metro Mall, construction activities had to be suspended as the property development area allotted to the Company was infringing the proposed line of Metro Station to be constructed by DMRC under phase III. Consequently, the construction activities could not be restarted due to DMRC's inability to provide necessary clarification regarding FAR availability on the property development area and final approved revised layout plan from MCD.

Pending arbitration award/necessary clarifications and documents, the Company has not provided for recurring licence fees for the above Projects accumulated to Rs. 2,262.55 lacs (brvious Year Rs. 1,104.27 lacs) and has shown the same under contingent liabilities. However, the Company has continued to carry forward the advances / costs incurred on these projects after charging for amortisation / debrciation on periodical basis.

In case of another project, viz Seelampur Plot, the sanction of building plans by Municipal Corporation of Delhi (MCD) got delayed for want of No Objection Certificate (NOC) from Government agencies. Accordingly, DMRC was approached to waive the recurring payment liability for the disputed period. Since an amicable resolution could not be reached out between the Company and DMRC, the Company invoked "Arbitration Clause" under the concession agreement for settlement of the matter.

Note 2: Pursuant to Investment Agreement dated 21 December, 2010 entered into between the Company, Parsvnath Buildwell Private Limited (PBPL), Parasnath And Associates Private Limited (Co-Promoter) and two overseas Investment entities (Investors) and 'Assignment of Development Rights Agreement' dated 28 December, 2010 entered into with PBPL and Collaborators, the Company had assigned Development Rights in respect of one of its ongoing projects, namely, 'Parsvnath Exotica, Ghaziabad' (on land admeasuring 31 acres) situated at Village Arthala, Ghaziabad (the Project) to PBPL on terms and conditions contained therein. Further the Company has given the following undertakings to PBPL:

a. The project shall be completed within the agreed completion schedule. Construction cost for completion of project shall not exceed the amount set out in the agreement and the project revenue from sold area shall be at least the amount set out in the agreement.

b. In case of delays in completion of the project, any penalties or compensation payable to customers shall be borne by the Company.

c. The Company shall not, directly or indirectly, create any encumbrance over or transfer any Equity securities held by it in PBPL during the lock in period (till completion of project) except for securing construction loan.

Note 3: The Company had entered into a Memorandum of Understanding (MOU) dated 22 December, 2010 with Parsvnath Realcon Private Limited (PRPL), a wholly owned subsidiary of its subsidiary Parsvnath Buildwell Private Limited (PBPL) in terms of which the Company had assigned development rights of the project, namely, 'Parsvnath Paramount' on land admeasuring 6,445 square metres situated at Subhash Nagar, New Delhi to PRPL. The Company has also entered into 'Project Management Agreement' with

PRPL and PBPL for overall management and coordination of project development. Further, the Company has given the following undertakings to PRPL:

a. It shall complete the project within the completion schedule and construction cost as set out in the Agreement.

b. The project revenues from the sold area shall be at least the amount set out in the Agreement

c. In the event of construction cost overrun or revenue shortfall, the Company shall contribute such excess/ shortfall amount against allotment of equity shares or other instruments at such brmium as may be mutually determined by the parties.

Note4:

The Company had entered into a Development Agreement (DA) with Chandigarh Housing Board (CHB) for the development of residential, commercial and other related infrastructure facilities as an integrated project ('the project') on land admeasuring 123.79 acres situated at Rajiv Gandhi Technology Park, Chandigarh.

Owing to various factors such as delay in handing over unencumbered land and consequent non-determination of start of development period, delay in approval of drawings, etc. and various other issues, disputes had arisen between the Company and CHB. Consequently, the Company had invoked the arbitration clause in the DA.

Arbitration proceedings after following due process under the law have been concluded and the Hon'ble Sole Arbitrator has pronounced the Award in January, 2015 which was accepted by the Company and the CHB. Pursuant to the arbitration award, the project has been discontinued during the year and has been surrendered to CHB. The loss of Rs. 46,971.24 lacs incurred on surrender of project has been written off and shown as 'Exceptional Item' in the Statement of Profit and Loss.

Subsequent to the acceptance and implementation of the Award, it was noticed that due to a computational error in the Award, the awarded amount was deficient by approx. Rs. 14,602 lacs. Consequently, the Company has made an application to the Hon'ble Sole Arbitrator for correction of the computational error. However, the Sole Arbitrator in his findings, while admitting the error, stated that after acceptance and implementation of the Award by both the parties he has now become non-functionary and therefore rejected the claims made by the Company. The Company has since filed its objections under section 34 of the Arbitration and Conciliation Act, 1996 read with section 151 of CPC before the Additional District Judge cum MACT, Chandigarh and the Court has issued notice to CHB for filing its reply and also called for the Arbitral Record from the Sole Arbitrator. Pending decision of the Additional District Judge, the amount of Rs. 14,045 lacs (net of tax deducted at source) has been shown as recoverable and included under short-term loans and advances in Note 19.

Note 5:

The Company had given an advance of Rs. 4,825.69 lacs to one of its subsidiaries viz., Parsvnath Film City Limited (PFCL) for execution of Multimedia-cum-Film City Project at Chandigarh. PFCL has deposited Rs. 4,775.00 lacs with Chandigarh Administration (CA) for acquiring development rights in respect of a plot of land admeasuring 30 acres from CA, under Development Agreement dated 2 March 2007 for development of a Multimedia-cum-Film City Complex. Since CA could not handover possession of the said land to PFCL in terms of the Development Agreement, PFCL accordingly invoked the arbitration clause seeking refund of allotment money paid along with compensation, cost incurred and interest thereon.

The Arbitral Panel vide its order dated 10 March, 2012 had decided the matter in favour of PFCL and awarded refund of Rs. 4,919.00 lacs towards the earnest money paid and other expenses incurred by PFCL along with interest @ 12% per annum. Subsequently, the CA filed a petition before the Additional District Judge at Chandigarh challenging the award under section 34 of The Arbitration and Conciliation Act, 1996. The said petition was dismissed by the Hon'ble District Judge vide his Order dated 7 May, 2015.

The Hon'ble Judge vide his judgement has decided the matter in favour of the Company and stated that the Arbitration Award is final and that there is no occasion to set aside the Award of the Arbitrator. Considering the facts and the discussions with Legal Counsel, the Management considers the above advance as good and fully recoverable.

Note 6: The Company had executed an 'Amended and Restated Investment and Security Holders' Agreement' dated 14 September, 2010 with one of its Subsidiaries, Parsvnath Estate Developers Private Limited (PEDPL), two Overseas Investment Entities (Investors) and others for development of an office complex on a plot of land admeasuring 15,583.83

sq. mtrs. situated at Bhai Veer Singh Marg, New Delhi, on the terms and conditions as contained in the Agreement and as amended from time to time. The Rights in the said plot have been allotted on 'Build Operate Transfer' (BOT) basis to the Company by Delhi Metro Rail Corporation Ltd. (DMRC). These Rights have been assigned by the Company in favour of PEDPL for implementation of the Project on obtaining approval of DMRC.

The Phase I of the project has been completed and capitalised during the year and PEDPL has commenced its commercial operations during the year.

Note 7: The Company had executed a 'PDL Support Agreement' in favour of Parsvnath Landmark Developers Private Limited (PLDPL) and J.P. Morgan Advisors India Private Limited (JP Morgan) being the Security Trustees for the Term Loan of Rs. 14,000.00 lacs given by JP Morgan to PLDPL. In terms of the said Agreement, the Company has given an Undertaking for completion of construction of 'La Tropicana' Project, New Delhi, within the amount set out in the Agreement and within the Completion Schedule, as stated therein. Any escalation in the construction cost is to be funded by the Company. Further, the Company has also undertaken that it shall maintain at all times not less than 78% of the Ownership interest and voting rights in PLDPL.

Note 8: The Company was declared as the "Selected Bidder" for grant of lease for development of project on a plot of land at Sarai Rohilla, Kishanganj, Delhi by 'Rail Land Development Authority' (RLDA) vide its 'Letter of Acceptance' (LOA) dated 26 November, 2010. In terms of the LOA, the project was being implemented through a Special Purpose Vehicle (SPV), Parsvnath Promoters and Developers Private Limited (PPDPL). Subsequently, in terms of the requirements of RLDA, another Company in the name of Parsvnath Rail Land Project Private Limited (PRLPPL) was incorporated as an SPV to implement the project. RLDA has accepted PRLPPL as the SPV vide its letter dated 3 August, 2012.

The Company has executed an 'Investment and Security Holders' Agreement dated 20 December 2012 with PRLPPL and two overseas Investment entities (Investors) in relation to the project. Subsequently, the Company has executed an 'Amended and Restated Investment and Security Holders Agreement' on 21 August, 2013 with PRLPPL alongwith aforesaid Investors for financing of the project.

Note 9: The Company had entered into a Joint Development Agreement on 21 November, 2012 with Honey Builders Limited (HBL) for the purpose of joint development of a residential plotted township (Project) situated at Sohna Road, Gurgaon on the lands owned / development rights held by the Company and HBL.

However, pursuant to the Collaboration Agreement dated 17 September, 2014 entered amongst the Company, HBL along with the Land Owning Companies and Supertech Limited (SL), the Development and Sales Rights over the project land has been transferred to SL.

Note 10: Managerial remuneration

The Company has reversed managerial remuneration amounting to Rs. 173.14 lacs paid in excess of the limits specified under the Companies Act, 2013 which amounts are being held in trust by the directors. The Company intends to obtain shareholders approval in the ensuing Annual General Meeting and file applications with the Central Government to obtain requisite approvals.

Note 11:

Trade receivables include Rs. 31,868.31 lacs (Previous year Rs. 31,816.72 lacs) outstanding for a period exceeding six months. Due to continued recession in the industry, there have been delays in collections from customers. In view of industry practice and terms of agreement with customers, all these debts are considered good for recovery and hence no provision is considered necessary.

Note 12: In the opinion of the Board of directors, current assets and long-term loans and advances do have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated.

Note 13: The Company has other commitments, for purchases orders which are issued after considering requirements as per operating cycle for purchase of goods and services, in normal course of business. The Company does not have any long-term contracts including derivative contracts for which there are any material foreseeable losses.

Note 14: Pursuant to the Income Tax assessment order dated 26 March, 2015, excess provision for Income Tax amounting  to Rs. 10,574.00 lacs has been written back in respect of the assessment year 2012-13.

Note 45: Debrciation

Effective 1 April, 2014, the Company has reviewed and revised the useful life of fixed assets, generally in accordance with the provisions of Schedule II to the Companies Act, 2013 for the purpose of providing debrciation on its fixed assets. The carrying amount of fixed assets as on 1 April, 2014 is debrciated over the revised remaining useful life. The carrying amount of fixed assets with revised useful life as nil, has been charged to opening reserves as on 1 April, 2014 in accordance with transitional provision specified in Schedule II to the Companies Act, 2013. Further, to rationalise the method of computation of debrciation, the Company has changed the method of debrciation from Written Down Value (WDV) method to Straight Line Method (SLM) for all the fixed assets. The effect of change in method of debrciation from WDV to SLM has been applied retrospectively and differential amount has been charged/ credited to the Statement of Profit and Loss.

Consequent to the adoption of revised policy of debrciation, and in accordance with requirements of Accounting Standard 6 'Debrciation Accounting', the difference between accumulated debrciation as of 31 March, 2014 recomputed on SLM method as above and the corresponding accumulated debrciation in the books amounting to Rs. 867.89 lacs has been written back and credited to the Statement of Profit and Loss for the year ended 31 March, 2015. The carrying amount of fixed assets, whose revised remaining useful life is determined as Nil as at 1 April, 2014 amounting to Rs. 40.93 Lacs (net of deferred tax of Rs. 21.09 Lacs) has been charged to opening balance of 'Surplus in Statement of Profit and Loss'. Had the Company followed the earlier method of debrciation of fixed assets, the charge to the statement of Profit and Loss for the year ended 31 March, 2015 would have been higher by 90.00 Lacs, with consequential impact on net block of fixed assets and loss before tax.

Note 15: Corporate social responsibility

In terms of provisions of section 135 of the Companies Act, 2013, the Company was required to spend an amount of Rs. 238.38 lacs on activities relating to Corporate Social Responsibilities (CSR). The Company has framed the CSR policy in accordance with the scheme, however no amount was spent during the year on CSR activities.

Note 16: The Company is engaged in the business of real estate development, which has been classified as infrastructural facilities as per Schedule VI to the Companies Act, 2013. Accordingly, provisions of section 186 of the Companies Act are not applicable to the company and hence no disclosure under that section is required.

Note 17:

The Company is setting up various projects on Build Operate Transfer (BOT) basis. Costs incurred on these Projects till completion of the project are reflected as Capital-Work-in-Progress.

Note 18: Employee benefit plans Defined contribution plans

The Company makes Provident Fund contributions to Regional Provident Fund Commissioner (RPFC) and ESI contributions to Employees State Insurance Corporation (ESIC), which are defined contribution plans, for qualifying employees. The Company contributes a specified percentage of salary to fund the benefits. The Company recognised Rs. 52.29 lacs (Previous year Rs. 38.94 lacs) for Provident Fund and ESI contributions in the Statement of Profit and Loss. The contributions payable to these plans by the Company are at the rates specified in the rules of the scheme.

Defined benefit plan

Gratuity is a defined benefit plan covering eligible employees. The plan provides for a lump sum payment to vested employees on retirement, death while in employment or termination of employment of an amount equivalent to 15 days salary for each completed year of service. Vesting occurs on completion of five years of service

Note 19: Segment information

The Company is brdominantly engaged in the business of Real Estate, thus operates in a single business segment. The Company is operating in India, which is considered as single geographical segment. Accordingly no disclosure is required under AS-17.

Note 20: Leasing arrangements as lessee

The Company has entered into Concession Agreements with Delhi Metro Rail Corporation (DMRC) and has acquired the License Rights to develop properties and sub license it to the customers for a defined period of time. Of the license fees of Rs. 1,139.52 Lacs (Previous Year Rs. 1,214.03 lacs) paid/payable by the Company during the year, Rs. 764.65 lacs (Previous year Rs. 718.40 lacs) has been charged to the Statement of Profit and Loss and Rs. 374.87 lacs (Previous Year Rs. 495.63 Lacs) has been capitalised. The total of future minimum license payments are as follows:

Note 21: Previous year's figures

Previous year's figures have been regrouped / reclassified wherever necessary to correspond with the current year's classification/disclosure.

For and on behalf of the Board of Directors

Sd/- Pradeep Kumar Jain

Chairman

Sd/- Sanjeev Kumar Jain

Managing Director & CEO

M. C. Jain Group Chief Financial Officer

V. Mohan Company Secretary

Place: New Delhi

Date: 25 May, 2015