(I) NATURE OF OPERATIONS
 
 Ahluwalia Contracts (India) Limited is primarily in the business of
 construction of structural and buildings.
 
 1.  CONTINGENT LIABILITIES NOT PROVIDED FOR
 
 S.No. Particulars                     March 31, 2011    March 31, 2010
                                                 (Rs.)               (Rs.)
 
 a)  Counter guarantees given to 
 bankers against Bank guarantees       4,73,24,73,185    4,26,10,06,857
 
 b) Indemnity Bonds/Performance 
 Bonds/ Surety Bonds / Corporate       1,26,43,95,704    1,19,48,99,037
 guarantees given to clients
 
 c) Value Added Tax liability          1,50,70,38,998      28,95,57,881
 
 d) Demand of stamp duty on 
 Real Estate Project                        57,41,980         57,41,980
 
 e) Claims against the company 
 not Acknowledged as debt                29,33,60,739      29,56,42,739
 
 f )  Excise duty demand for 
 F.Y. 1998-99 & 2000-2001                   46,37,000         46,37,000
 
 g)  Service tax demand on allegely 
 wrong availment of abatement on       1,96,11,49,906    1,08,37,50,234
 account of free supply of material 
 by the Client
 
 h)  Income tax demand                       5,02,111            -
 
 Based on legal opinion taken by the Company, discussions with the
 advocates etc, the Company believes that there is fair chance of
 decisions in its favour in respect of all items listed in (c) to (g)
 above and hence no provision is considered necessary against the same.
 The reply/appeal have been filed before appropriate authority/Court.
 Disposal is awaited.
 
 2 a) The company has executed Common Wealth Games Village Project. The
 company has raised R.A. bills amounting to Rs. 638,87,67,898/- up to the
 March, 2010 which have been certified to the extent of Rs.
 571,84,67,898/- . The company has further raised bills and lodged the
 claims of Rs. 418,02,86,608/- on the client with respect to additional
 works on account of deviations and other aspects. The client has in
 turn raised a counter claim on the company for Rs.250,92,91,002/-.
 Negotiations for the settlements are in progress and affect will be
 given on final settlement as per the policy consistently followed by
 the Company.  The management is of the opinion that the demand raised
 by the client is not sustainable.
 
 b) On 19th Jan, 2011 Sri Sumeru Realty Pvt. Ltd (SSRPL) Bangalore, a
 client invoked the Bank Guarantees amounting to Rs. 500,44,760/- and
 terminated the Contract on 10.03.11.The Company filed petition in the
 District and Sessions Court, Bangalore to restrain the Bank for release
 of Payment against these Bank Guarantees. The Company has also filed
 application to secure claims of Rs. 22,74,79,303/- The Court restrained
 the Bank to release the payment of Bank Guarantees.
 
 The matter is being pursued as per direction of the Court. The effect
 for recovery of dues and assets at site will be accounted for on final
 settlement/ court order.
 
 c) The Construction of Festival City, Ludhiana was awarded on
 10.03.2006 for a contract value of Rs. 110,00,00,00/- for the period of
 15 months. . The project was delayed due to various reasons and under
 suspension since June 2009. During the course of the execution of the
 project, the Company had entered in to an agreement to create strategic
 account & agreement to sell in April 2007 for contiguous office space
 of 28744 sq ft. for a total sale consideration of Rs. 6,46,74,743/-.
 
 The Client''s bankers have taken over possession of the project
 (Building) under SARFESI Act and have filed a suit for recovery in Debt
 Recovery Tribunal (DRT).
 
 The Company has filed separate petition dated 21/24.06.2010 with DRT II
 u/s 17 (3) of SARFESI Act (i) to set- aside the possession notice for
 the space 28744 Sqft (ii) to stay all actions with regard space 28744
 Sqft already allotted to the Company by the Client. The matter as such
 is sub judice.
 
 The recovery of the Company''s dues are dependent upon decision of the
 judicial process. The management is of the opinion that the dues as per
 books of account are fully recoverable.
 
 3.  Capital commitments :- Capital contracts remaining to be executed
 (net of payments) and not provided for Rs. 58,39,37,834/- (Previous Year
 Rs. 66,86,43,984/-)
 
 4.  In the opinion of the Board, Current Assets, Loans and Advances are
 approximately of the value stated if realised in the ordinary course of
 business. The provisions for depreciation and for all known liabilities
 are adequate and not excess of the amount considered necessary.
 
 5.  The Company has initiated the process of obtaining confirmation
 from suppliers who have registered themselves under the Micro Small
 Medium Enterprises Development Act, 2006 (MSMED Act, 2006). Based on
 the information available with the Company, the
 
 6 The Company has 100% subsidiaries namely of M/s. Ahlcon Ready Mix
 Concrete Pvt. Ltd., Dipesh Mining Pvt. Ltd., Jiwan Jyoti Traders Pvt.
 Ltd., Paramount Dealcomm Pvt. Ltd., Premsagar Merchants Pvt. Ltd. and
 Splendor Distributors Pvt. Ltd. As a result of which these companies
 have become wholly owned subsidiaries of the company.
 
 7 (a) Sundry Debtors, Advances Recoverable and Sundry Creditors
 balances appearing in the Balance Sheet are subject to confirmation.
 (b) Advance payments received towards contracts are secured by Bank
 Guarantees and/or indemnity bonds issued by the company.
 
 8 (a) Fixed Deposit Receipts to the tune of Rs. 44,20,35,886/- (P.Y. Rs.
 36,59,44,451/-) along with interest accrued Rs. 2,83,78,990/- (P.Y.
 
 Rs.3,01,57,404/-) have been pledged with the Company''s Bankers as margin
 for Bank Guarantees, Letters of Credits, Security Deposit under lien
 for Loans obtained from Banks and FDRs are deposited with the court for
 legal cases against the company.
 
 (b) Working Capital Facilities availed by the company
 
 1) From Canara Bank are secured by way of
 
 a) Personal guarantee of (i) Mr. Bikramjit Ahluwalia (ii) Mr. Shobhit
 Uppal, (iii) Mrs. Sudershan Walia and (4) Mr. Vikaas Ahluwalia.
 
 b) First Paripassu charge on Stock and Book Debts.
 
 c) Equitable mortgage of Commercial property at Plot. No.A-177,Okhla
 Industrial Area, Phase-I, New Delhi- Rs. 2,28,00,000/-, valuation report
 dated 3.3.2007, Equitable mortgage of Commercial property at Plot No.
 4, Community Centre, Saket, New Delhi - Rs. 9,76,00,000/- valuation
 report dated 8.12.2007, Equitable mortgage of Residential property at
 Plot No.  B-7, Saket, New Delhi - Rs. 5,79,00,000/-, valuation report
 dated 3.3.2007.
 
 2) From Yes Bank Limited are secured by way of
 
 a) First paripassu charge on the current assets of the company.
 
 b) Personal guarantee of (1) Mr. Shobhit Uppal and (2) Mr.Vikaas
 Ahluwalia
 
 c) Demand Promissory Note for Rs. 20,00,00,000/-.
 
 3) From Standard Chartered Bank are secured by way of
 
 a) First paripassu charge on the current assets of the company along
 with other Banks in multiple banking arrangements
 
 b) Personal guarantee of (i) Mr. Bikramjit Ahluwalia (ii) Mr. Shobhit
 Uppal (iii) Mrs. Sudershan Walia and (iv) Mr. Vikaas Ahluwalia.
 
 4) From Axis Bank are secured by way of
 
 a) First paripassu charge on the current assets of the company along
 with other banks in Multiple Banking Arrangement.
 
 b) Personal Guarantee of (i) Mr. Bikramjit Ahluwalia (ii) Mr. Shobhit
 Uppal (iii) Mrs. Sudershan Walia (iv) Mr. Vikaas Ahluwalia.
 
 5) From Kotak Mahindra Bank Ltd. are secured by way of First pari passu
 charge on all existing and future current assets of the company.
 
 a) Personal guarantee of (i) Mr. Bikramjit Ahluwalia (ii) Mr. Vikaas
 Ahluwalia.
 
 c) Undated cheque in bank''s format for the facility amount.
 
 6) From Induslnd Bank Ltd. are secured by way of
 
 a) First paripassu charge on current assets of the company
 
 b) Personal guarantee of (i) Mr. Bikramjit Ahluwalia (ii) Mr. Shobhit
 Uppal (iii) Mrs. Sudershan Walia and (iv) Mr. Vikaas Ahluwalia.
 
 7) From Citi Bank N.A. are secured by way of
 
 a) First paripassu charge on present and future stocks and book debts
 of the company.
 
 b) Personal guarantee of (i) Mr. Bikramjit Ahluwalia and (ii) Mrs.
 Sudershan Walia
 
 c) Demand Promissory Note and letter of continuity for Rs.
 58,00,00,000/-.
 
 8) From Bank of Maharashtra are secured by way of
 
 a) First paripassu charge on all current assets of the company
 alongwith other multiple member banks.
 
 b) Personal guarantee of (i) Mr. Bikramjit Ahluwalia (ii) Mr. Shobhit
 Uppal (iii) Mrs. Sudarshan Walia (iv) Mr. Vikaas Ahluwalia.
 
 c) Pledge of 15,00,000 Equity shares of the company belonging to the
 promoters of the Company.
 
 9) From IDBI Bank Ltd.are secured by way of
 
 a) First paripassu charge on entire current assets of the company along
 with other banks in multiple banking arrangement.
 
 b) Personal Guarantee of (i) Mr.Bikramjit Ahluwalia (ii) Mrs.
 SudarshanWalia.
 
 10) From State Bank of Patiala are secured by way of
 
 a) First paripassu charge on the entire current assets of the company
 along with other banks under multiple banking arrangement.
 
 b) Personal Guarantee of (i) Mr. Bikramjit Ahluwalia (ii) Mr. Shobhit
 Uppal (iii) Mrs. Sudarshan Walia (iv) Mr. Vikaas Ahluwalia.
 
 11) From ING Vysya Bank Ltd.are secured by way of
 
 a) First paripassu charge on the entire present and future current
 assets of the company with other banks.
 
 b) Personal Guarantee of (i) Mr. Bikramjit Ahluwalia (ii) Mrs.
 Sudarshan Walia (iii) Mr. Shobhit Uppal (iv) Mr.Vikaas Ahluwalia.
 
 12) From Punjab & Sind Bank are secured by way of
 
 a) First paripassu charge on current assets both present & future viz
 Raw Materials, Semi finished and finished goods, Consumables, Stores
 and Spares, Book Debts etc.with participating Lenders.
 
 b) Pledge of 102,71,380 equity shares of the company of the promoters.
 
 c) Personal Guarantee of (i) Mr. Bikramjit Ahluwalia (ii) Mrs.
 Sudarshan Walia (iii) Mr. Vikaas Ahluwalia.
 
 13) From ICICI bank, Fund based facilities for Rs. 10,00,00,000/- are
 secured by way of
 
 a) First Paripassu charge on entire stocks and book debts, both present
 and future
 
 b) Personal Guarantee of (i) Mr.Shobhit Uppal (ii) Mr.Vikaas Ahluwalia
 
 14) From ICICI Bank Ltd., Bank Guarantee facilities of Rs. 50,00,00,000/-
 is secured by way of Personal guarantee of (i) Mr. Shobhit Uppal (ii)
 Mr.Vikaas Ahluwalia
 
 15) From Bank of India are secured by way of
 
 a) First Paripassu charge on entire current assets of the company along
 with other working capital lenders.
 
 b) Personal Guarantee of (i) Mr.Bikramjit Ahluwalia (ii) Mrs. Sudershan
 Walia
 
 16) From G.E. Capital Services India for working capital/general
 corporate purpose are secured by way of
 
 a) Hypothecation of specified equipments.
 
 b) Demand promissory Note for Rs. 7,00,00,000/- c) Undated cheque for Rs.
 7,00,00,000/- (c) Term Loan facilities availed by the company -
 
 1) From Standard Chartered Bank is secured by way of
 
 a) First and exclusive charge of assets financed by the bank.
 
 b) Personal guarantee of Mr. Bikramjit Ahluwalia
 
 c) Post dated cheque for repayment of interest and principal.
 
 (d) 1) Term Loan facilities taken for machinery / vehicle from, ICICI
 Bank Ltd., HDFC Bank Ltd. are secured by way of hypothecation
 
 of specified machinery / vehicle.
 
 2) Term loan facilities taken for vehicles from Bank of Maharashtra are
 secured by way of hypothecation of specified vehicles and personal
 guarantee of Mr. Bikramjit Ahluwalia
 
 (e) Other Term Loan from TML Financial Services Ltd., L&T Finance Ltd.,
 Magma Fincorp Ltd., SREI Equipments Finance Pvt. Ltd., First Leasing
 Company of India Ltd. are secured by way of hypothecation of specified
 machinery / vehicle.
 
 (f) Bank Guarantees Facilities availed from -
 
 1) Allahabad Bank is secured by way of
 
 a) First paripassu charge/ Hypothecation charge over entire current
 assets of the company both present and future.
 
 b) Personal Guarantee of (i) Mr. Bikramjit Ahluwalia (ii) Mrs.
 Sudershan Walia (iii) Mr. Shobhit Uppal (iv) Mr. Vikaas Ahluwalia
 
 2) ICICI Bank Ltd. of Rs. 90,00,00,000/- is secured by way of
 
 a) First paripassu charge on entire stocks and book debts, both present
 and future
 
 b) Personal Guarantee of (i) Mr. Bikramjit Ahluwalia (ii) Mrs.
 Sudershan Walia.
 
 3) Syndicate bank is secured by way of 100% margin of Rs. 55,00,000/-.
 
 9.  (i) Loan to Body Corporate (shown under schedule 11) due from
 subsidiary companies includes Rs. 4,72,25,162/- (P.Y. Rs. 4,72,25,162/-)
 (maximum amount due at any time during the year Rs. 4,72,25,162/- (P.Y. Rs.
 10,27,60,649/-).
 
 (ii) Sundry creditors includes amount due to subsidiary companies in
 which Directors are interested Rs. 2,67,14,172/- (P.Y. Rs. 1,98,46,806/-)
 (maximum amount due at any time during the year Rs. 2,89,22,104/-) (P.Y.
 Rs. 2,39,84,369/-).
 
 (iii) Sundry debtors includes amount due from companies in which
 Directors are interested Rs. 3,03,750/- (P.Y. Rs.60,750/-) (Maximum balance
 at any time during the year Rs. 3,03,750/- (P.Y. Rs. 1,04,406/-).
 
 (iv) Sundry debtors includes amount Rs. 1,83,00,582/- (P.Y. Rs.
 51,29,325/-) (Maximum balance at any time during the year Rs.
 1,83,00,582/- (P.Y. Rs. 51,29,325/-) due from Chairman & Managing
 Director Mr. Bikramjit Ahluwalia / proprietary concerns of Mr.
 Bikramjit Ahluwalia.
 
 (v) Advance recoverable in cash or in kind or for value to be received
 includes amount due from companies in which directors are interested Rs.
 3,79,60,273/- (P.Y. Rs.6,03,79,801/-) Maximum balance due at any time
 during the year Rs. 15,70,33,188/- (P.Y.  Rs.18,38,51,952/-).
 
 11.  A sum of Rs. 45,781/- Debit (P.Y. Rs. 75,652/- Debit), relating to
 earlier years have been considered in respective heads of accounts.
 
 12.  Bus Terminal and Depot and Commercial Complex at Kota
 
 i) The Company entered into an Agreement to Develop with Rajasthan
 State Road Transport Corporation (RSRTC), grantor, for
 Development/Construction of Bus Terminal and Depot and Commercial
 Complex at Kota, on 19th September, 2007. The project was to be
 completed within 18 months. Delay in approval of drawing by Statutory
 Authorities effected the progress of the project and delay in
 completion. In a meeting held on 13.06.2011, with the Statutory
 Authorities and RSRTC grantor, it was decided that the project shall be
 completed and no penalty shall be levied till Dec. 2011.
 
 ii) The project cost has been estimated Rs. 72,00,00,000/- out of which Rs.
 14,75,74,583/- have been spent till 31.03.2011. The expenditure
 incurred has been shown in Balance Sheet under the main head Fixed
 Assets and sub-head Capital Work in Progress as Intangible Asset.
 The total expenditure will be amortised during the useful period taking
 into account the revenue receivable for remaining useful period.
 
 iii) Right to Lease Commercial Complex: The period of lease of right of
 Commercial complex is 40 years (30 years   10 years extended period)
 from the date of completion of the project. Thereafter, the Commercial
 Complex will be handed over to RSRTC.
 
 iv) a) Revenue from Advertisement, outside the building shall be 50% to
 RSRTC. No Revenue sharing from Advertisement etc.  inside the building.
 
 v) Maintenance Obligations: The maintenance of Bus Terminal and Depot
 is the responsibility of RSRTC. It will be Contractual obligations to
 maintain the commercial complex. The actual maintenance charges will be
 recovered from the occupants of the commercial complex.
 
 13.  Employee Benefits:
 
 a) Effective from 1st January''2007, the Company adopted Accounting
 Standard 15 (Revised 2005) on Employee Benefits issued by the
 Institute of Chartered Accountant of India.
 
 16.  a) Current tax is calculated in accordance with the tax laws
 applicable to the current financial year and accordingly charged to the
 profit and loss account for the year.
 
 17. The Company has taken various residential, office and warehouse
 premises under operating lease agreements. These are generally not
 non-cancellable and are renewable by mutual consent on mutually agreed
 terms. There are no restrictions imposed by Lease Agreement. There are
 no subleases.
 
 18.  Related Party Disclosure:
 
 i) List of Related Parties (as ascertained by the management)
 
 1.  Parties under common control & Associates: M/s Ahlcon Parenterals
 (India) Limited
 
 M/s Tidal Securities Private Ltd.
 
 M/s Ahlcons India Private Limited
 
 M/s. Capricon Industrials Ltd.
 
 M/s. Ahluwalia Builders & Development Group Pvt. Ltd.
 
 2.  Parties under Subsidiary Companies M/s. Ahlcon Ready Mix Concrete
 Pvt. Ltd.  M/s. Dipesh Mining Pvt. Ltd.
 
 M/s. Jiwanjyoti Traders Pvt. Ltd.  M/s. Paramount Dealcomm Pvt. Ltd.
 M/s. Prem Sagar Merchants Pvt. Ltd.  M/s. Splendor Distributors Pvt.
 Ltd.
 
 3.  Key Management Personnels:
 
 Mr. Bikramjit Ahluwalia Chairman & Managing Director
 
 Mr. Shobhit Uppal Dy. Managing Director
 
 Mr. Vikaas Ahluwalia Whole Time Director
 
 Mrs. Sudershan Walia Whole Time Director
 
 Mr. Vinay Pal Whole Time Director (Appointed on 14.08.2010)
 
 4 Relative of Key Management Personnels & Relationship:
 
 Mrs. Rohini Ahluwalia Daughter of Chairman & Managing Director
 
 Mrs. Rachna Uppal Daughter of Chairman & Managing Director
 
 Mrs. Mukta Ahluwalia Daughter of Chairman & Managing Director
 
 Mrs. Pushpa Rani Sister of Chairman & Managing Director
 
 Mrs. Ram Piari Sister of Chairman & Managing Director
 
 Mrs. Raman Pal Mother of Whole Time Director
 
 5.  Enterprises over which key managerial personnel is able to exercise
 significant influence.
 
 Karam Chand Ahluwalia Hospital & Medical Research Society
 
 21.  The Company is having only one business segment - Construction
 activities, hence no segment reporting is applicable.
 
 22.  Additional information pursuant to the provisions of paragraph 3,
 4-C and 4-D of part II of Schedule VI of the Companies Act, 1956:
 
 The company is mainly engaged in the business of construction. Keeping
 in view the multifarious jobs at different sites and practical
 difficulties in measuring building material, individual details with
 regard to quantities of stock, production, turnover and consumption of
 raw materials are not given. Also the diverse nature of contracts
 undertaken by the Company and wide variety of material consumed, the
 additional information has been furnished to the extent practicable.