Anant Raj Industries

As at March   As at March
                                            31st 2009     31st 2008
                                                Rs.           Rs.
 
 i) Contingent liabilities not provided 
    for in respect of:
 a) Claims against the Company not 
    acknowledged as debts                  64,314,053     40,745,010
 b) Bonds given to custom authorities 
    for custom duty saved on
    import of capital goods under 
    EPCG scheme                            47,914,281     47,914,281
 
 [Unfulfilled export obligation of                -           - 
 Rs. 83,918,233 (Rs.83,918,233)
 under EPCG license for import 
 of capital goods (to be fulfilled
 by June 18,2010)]
 
 [Unfulfilled export obligation of                 -           -
 Rs. 7,489,456 (Rs. 7,489,456)
 under EPCG license for import 
 of capital goods (to be fulfilled
 by January 1,2013)]
 
 [Unfulfilled export obligation of Rs.              -           -
 186,026,102 (Rs. 186,026,102)
 under EPCG license for import of 
 capital goods (to be fulfilled
 by March 15, 2013)]
 
 [Unfulfilled export obligation of                  -           -
 Rs. 9,941,224 (Rs. 9,941,224)
 under EPCG license for import 
 of capital goods (to be fulfilled
 by June 23, 2016)]
 
 c) Guarantees given by Banks                   546,405         -
 Deposits held by bank as margin 
 towards guarantee given to
 custom authorities for custom duty 
 saved on import of capital
 goods under EPCG scheme
 
 [Unfulfilled export obligation of             -                -
 Rs. 7,513,096 (Nil) under
 EPCG license for import of 
 capital goods (to be fulfilled
 by June 6, 2016)]
 
 Deposits of Rs. 100,000 (Rs. 100,000) 
 held by Banks as margin                   100,000            100,000
 shown under the head Bank Balances
 
 d) Borrowings by affiliate companies 
 whose loans have been
 guaranteed by the Company as at the 
 close of the year                      107,964,510                -
 
 Amounts are net of payments made and          -                   -
 without considering interest for
 the overdue period and penalty, if any, 
 as may be levied if the demand
 is raised so upheld.
 
 ii) Estimated amount of contracts 
 remaining to be executed on capital
 account and not provided for 
 (Net of advances)                       761,320,083      1,440,673,287
 
 Hi) Unexpired installments of assets 
 purchased on hire purchase basis          2,986,094          8,073,482
 [Amount due within 1 (one) year is 
 Rs. 2,504,744 (Rs. 5,087,388)]
 
                                 For The Year Ended   for The Year Ended
                                 March 31,2009        March 31,2008
                                       Rs.                 Rs.
 
 iv) Payment to directors
    Remuneration to managing 
    director                      12,768,000             3,670,800
    Sitting fees                      77,500                60,000
 
 - Does not include expense towards 
 retirement benefits since the same
 is based on actuarial valuations 
 carried out for the Company as a
 whole.
 
 v) Payment to auditors:
 
 For services as auditors, including 
 quarterly audits and service tax  1,828,752              2,787,459
 For certification services 
 including service tax                12,257                124,046
 
 vi) Secured loans
 
 From State Bank of India (SBI)
 
 a) Working capital facilities of Rs. 0.88 lacs (Rs. 853 lacs) in the
 form of cash credit secured against hypothecation of Companys entire
 stock of raw material, stock in process, finished goods, consumable
 stores, spares, goods in transit, book debts and receivables, all
 documents to the title of goods in transit, i.e., bill of lading, lorry
 receipts, etc. The abovesaid facilities are collateraly secured by, (a)
 equitable mortagage of factory land building, and hypothecation of
 machinery/fixtures, etc. thereat, (b) personal guarantees of 2 (two)
 promoters/directors and 2 (two) family members of promoters/directors.
 
 b) Term loan of Rs. 2,907 lacs (Rs. 1,746 lacs )of demerged
 construction and development division of Anant Raj Agencies Pvt. Ltd.
 one of the transferor division, merged with the Company on January 1,
 2007) is in the nature of loan against assignment of lease rentals
 receivable from specified tenants at Jhandewalan Extension, New Delhi,
 The loan is collaterally secured by way of equitable mortgage of
 Companys property at Jhandewalan Extension, New Delhi. The loan is
 further secured by, (a) personal guarantees of 2 (two) directors/
 promoters of the Company, and (b) personal guarantee of 2 (two) family
 member of promoter/director.
 
 From Oriental Bank of Commerce (OBC)
 
 c) Term loan of Rs. 5,559 lacs (Rs. 2,523 lacs) is secured against
 first pari passu charge on entire plant and machinery and super
 structure built/to be built at IMT, Manesar, Haryana. The term loan is
 additionaly secured against land at Village Khera Kalan, Nangli Poona,
 Delhi, in the name of the Company. The term loan is also collaterally
 secured by way of personal guarantees of 2 (two) directors/ promoters
 of the Company, and (b) personal guarantee of 2 (two) family members of
 directors/promoters of the Company.
 
 From Central Bank of India (CBI)
 
 d) Term loan of Rs. 2,591 lacs (Nil), is secured against first charge
 by way of equitable mortgage of land and proposed building of the
 project located at IMT Manesar and by hypothecation charge on other
 movable fixed assets and current assets of the project including work
 in progress and assignment of lease rentals through an Escrow Account.
 The term loan is additionaly secured against land at Village Khera
 Kalan, Nangli Poona, Delhi, in the name of the company . The term loan
 is also collaterally secured by way of personal guarantees of 2 (two)
 directors/ promoters of the Company, and (b) personal guarantee of 2
 (two) family members of directors/promoters of the Company.
 
 Term loans repayable within 1 (one) year Rs. 153,429,938 (Rs.
 65,111,520).
 
 The Company has neither given counter guarantee to the abovementioned
 directors nor any incentive/commission is payable to them.
 
 vii) Vehicle loans are secured against hypothecation of respective
 vehicles.
 
 viii) Dealership deposits, shown under the head Unsecured Loans, are
 interest bearing deposits received by the Company from dealers of its
 products.
 
 ix) The Company issued 20,144,000 Global Depository Receipts (GDRs)
 each representing one equity share of  nominal value of Rs. 2 each at
 the offer price of US $ 7.494 aggregating to US $ 151 million
 equivalent to Rs.  60,806.34 lacs on February 29, 2008. The said GDRs
 are listed on the Luxemburg Stock Exchange. The funds so raised have
 been/would be utilised for development and construction of special
 economic zones, information and technology parks, hospitality sector,
 augmenting long term resources and working capital requirements and
 unutilised funds have been places as fixed deposits with Bank.
 
 x) During the year, the Company has entered into Joint venture
 agreements with, 
 
 (i) Monsoon Capital for construction and development of an Information
 and Technology Park at Panchkula, Haryana; 
 
 (ii) Swan Consultants, a Reliance (ADAG) company for development of two
 hospitality projects in New Delhi, and a Special Economic Zone of 500
 acres at Manesar, Haryana; and 
 
 (iii) Lalea Trading Ltd., Cyprus, for development of project land by
 construction thereon of retail mall.
 
 xi) The profit is inclusive of Rs. 162.40 crores arising on transfer of
 one of the development projects of the Company to its wholly owned
 subsidiary, Anant Raj Projects Ltd.
 
 xii) Unpaid dividend, to be credited to Investor Education and
 Protection Fund, does not include any amount due and outstanding.
 
 xiii) As per Accounting Standard-21 on Consolidated Financial
 Statements issued by the Institute of Chartered Accountants of India,
 the Company has presented consolidated financial statements separately
 in this annual report.
 
 xiv) Deposits with Bank include Rs. 840,948 (Rs. 1,115,823) pledged
 with Sale tax Department/Excise Authorities.
 
 xv) Advance recoverable in cash or in kind or for value to be received
 include:
 
 Amounts due from companies under the same management with in the
 meaning of sub-section (IB) of section 370, are Rs. 4,847,660,928 (Rs.
 3,723,746,795). Maximum amount due during the year from these companies
 was Rs. 9,848,371,202 (Rs. 6,656,418,516).
 
 xvi) Sundry debtors include Rs. 666,671 (Rs. 67,289) as debts due from
 companies under the same management.
 
 Maximum balance due during the year was Rs. 3,166,963 (Rs. 4,207,262).
 
 xvfi) Small Scale Industrial (SSI) undertakings have been indentified
 by the management on the basis of information provided by the
 suppliers/creditors. The amount outstanding for more than 30 days, as
 on March 31, 2009 payable to SSI undertakings is Rs. 2,503,032.
 
 The outstanding amounts payable to above parties are not within the
 contracted credit period.
 
 xvi) In accordance with the Accounting Standard 15 (Revised) (AS-15) on
 Employee Benefits issued by the Institute of Chartered Accountants of
 India, the Company has recognised its liability towards defined benefit
 plans being Gratuity liability of Rs. 6,671,265 (Rs. 5,202,083) and
 leave encashment liability of Rs. 2,247,568 (Rs. 1,925,221).
 
 (e) The discount rate is based upon the market yields available on
 Government bonds at the accounting date with a term that matches that
 of the liabilities.
 
 (f) The estimates of future salary increase considered in the actuarial
 valuation takes into account factors like inflation, seniority,
 promotion and other relevant factors.
 
 (g) The employees are assumed to retire at the age of 58 years.
 
 (h) The mortality rate considered are as per the published rates in the
 LIC (1994-96) mortality tables.
 
 b) No loans have been given (other than loans to employees), wherein
 there is no repayment schedule or repayment is beyond seven years and
 no interest or interest below the rate as specified in section 372A(3)
 of the Companies Act, 1956 is charged.
 
 c) Loans and advances includes loan of Rs. 504,460,000 (Rs.
 179,000,000) given to subsidiary which holds 453,500 (453,500) equity
 shares of the Company.
 
 xxiv)The State Government of Haryana, did not fulfil its obligations in
 the matter of grant of sales tax exemption. The Company had filed a
 writ petition before the Honble High Court of Punjab and Haryana,
 situated at Chandigarh, which was admitted and is yet to be fully
 disposed. The Company has been advised that no liability is likely to
 arise on account of sales tax, and accordingly, no provision has been
 made by the Company in its books of account.
 
 xxv) The Income tax Authorities set aside the assessments framed for 2
 (two) earlier years and reopened the assessments framed in respect of
 other 2 (two) years. The aforesaid Authorities had since re-framed
 reassessments in respect of all the 4 (four) abovementioned assessment
 years against the Company, which were set aside in by the First
 Appellate Authority (Commissioner of Income tax (Appeals)) in disposing
 appeals filed by the Company against the re-assessments. The Assessing
 Authority has preferred appeals before the Second Appellate Authority
 (the Honble Income tax Appellate Tribunal). The Honble Appellate
 Tribunal (ITAT) while setting aside appeal of the Income tax Department
 for one of the years, has allowed the other appeals preferred by the
 Department. The Company filed an appeal with Hoble High Court of
 Delhi, against the order of Honble ITAT in case of 3 appeals of the
 Income tax Department, which have been allowed by the Honble ITAT.
 
 The income tax demand of Rs. 27,912,346 (excluding interest and
 additional tax) has been raised by the Income tax Department in respect
 of these appeals. No provision has been made in the books of account as
 the Company has been advised that no liability is likely to crystalize
 on this account.
 
 xxvi) In the opinion of the management, the realizable value of all
 current assets, loan and advances in the ordinary course of business
 will not be less than their value stated in the Balance Sheet.
 
 xxvii)Balances grouped sundry debtors, sundry creditors and loans and
 advances recoverable in cash or in kind are subject to confirmation
 from subjective parties.
 
 xxviii) All the operating leases entered into by the Company are
 cancellable on serving a notice of one to three months as such there is
 no information required to be furnished as per Accounting Standard
 AS-19 titled Leases issued by the Institute of Chartered Accountants
 of India.
 
 xxxi) Figures have been rounded off to the nearest Rupee.
 
 xxxii) Figures in brackets pertain to previous year, unless otherwise
 indicated.
 
 xxxiii) Previous year figures have been regrouped/rearranged and
 recast, wherever considered necessary.