Ansal Properties & Infrastructure

1.  Contingent Liabilities
 
 Sl.   Particulars                               As at            As at
 No.                                  31st March, 2009 31st March, 2008
                                           Rs. in lacs      Rs. in lacs
 
 (i) Claims by customers /ex-employees for
 interest, damages etc.
 (to the extent quantified)
 (See foot note i)                                1932             1833
 
 (ii) Claims by local Authorities for Ground Rent  303              291
 
 (iii)   Income/Wealth Tax demand disputed by the
 Company. (See foot note ii&iii)
 
 a) On completion of regular assessment            769              330
 
 b) On completion of block assessment             1884             1884
 
 (iv)  Guarantees given by the Company to Banks/
 Financial Institutions/Others 
 for loans taken by                              21808*           28650
 other Group Companies.
 
 (V)  Service Tax/Sales Tax 
 Demand disputed by the                            730               93
 Company
 
 *Includes loan ofRs.5000 lacs taken byAnsal Colors Engineering SEZ Ltd.
 for which the Company has pledged shares ofRs. 50 lacs inAnsal Seagull
 SEZ Developers Limited.
 
 NOTE
 
 (i) In respect of claims at (i) above, the management is of the opinion
 that in the majority of the cases claims will be successfully resisted
 or settled out of court on payment of nominal compensatlon.
 
 (ii) As regards Income /wealth tax demands of Rs.769 lacs disputed by
 the Company are concerned, similar demands have been set aside by the
 Appellate Authorities in most of the cases in the past.
 
 (iii) In respect of block assessment for the year 1st April, 1989 to
 12th February, 2000, cross appeals filed by the Company and the tax
 department, Income Tax Appellate Tribunal (ITAT) has given full relief
 to the Company and rejected departments grounds of appeal and tax
 claim of Rs.4,409 lacs. The tax department has gone for further
 reference to the High Court. The Company, based on an arbitration
 award, had accounted for income of Rs. 4,200 lacs in the year 2002-03
 and paid/provided income tax accordingly. The contingent liability not
 provided in the accounts in respect of block assessments is estimated
 at Rs1884 lacs. The Company has been legally advised that it has a good
 case to succeed in the High Court.
 
 (iv) During the year, the Company has received show cause notices from
 the service tax department assessing service tax of Rs.568 lacs payable
 upto the year 2007-2008. The Company has been advised that it has a
 good case to get the demand set aside.
 
 2. (a) Advances for land include Rs.20038.42 lacs being payments to
 Subsidiaries, Land Holding Companies and others towards cost of land
 acquired / to be acquired under collaboration / other arrangements. The
 land acquired is registered in the name of these companies but under
 possession, control of the Company and is being developed and sold by
 the Company. Advances against purchase of land are adjusted against
 sale proceeds of land / flats /houses etc., developed by the Company in
 terms of the collaboration agreements entered with these companies.
 
 (b) Advances also include Rs. 10015.10 lacs to Subsidiary Companies not
 included in Note 2(a) above in respect of which terms and conditions
 including repayment schedule are under finalisation. These advances are
 adequately covered by the assets held by these entities.
 
 3.(a) The Company was developing two projects in collaboration with the
 land owners / collaborators in which it has net investment of Rs.4631
 lacs. The Company is negotiating restructuring of the ownership of
 these projects with the collaborators and no material adjustments are
 likely to arise on final settlement.
 
 (b) Advances amounting to Rs.9955 lacs have been paid to collaborators
 towards land owned / acquired / to be acquired by them. Advances to
 Collaborators also include Rs.4281 lacs in respect of which agreements
 are under execution and Rs. 5187 lacs which are more than three years
 old out of which advances amounting to Rs. 1996 lacs are also included
 in advances under review included in Rs. 9955 lacs.
 
 The Company is reviewing the feasibility and appropriate timing of
 launch of the project for which advances have been given in view of the
 current economic situation and marketing situation.  Considering the
 present market value of the land bank involved in collaboration / other
 arrangements, the management is of the opinion that no materials loss
 will arise on completion of review.
 
 4. The Company has received Rs.4666.60 lacs as advances from certain
 Group Companies and others, the terms and conditions whereof are being
 finalized.
 
 5.  Stock Options
 
 On termination of Ansal API Employees/ Directors Stock Options Scheme,
 2006 (ESOS), Rs.136.52 lacs charged to the Profit & Loss Account in the
 earlier years on account of compensation expenses has been written
 backand included in Other Income in the Profit & Loss Account.
 
 6.  Prior Period Income/ Expenses
 
 a) On completion of mapping exercise due to ERP implementation and
 review and reconciliation of accounts adjustments have arisen relating
 to prior periods also. Due to percentage of completion- method
 followed by the Company for revenue recognition and accounting of
 expenditure through the work in progress account, it has not been
 possible to determine quantum of adjustments which have impacted the
 profit and loss account on account of transactions relating to the
 earlier years.
 
 b) Sales cancelled / surrenders of Rs.2019.81 lacs relate to sales made
 in the earlier years. The cost of sales amounting to Rs.1170.00 lacs
 have been included in the closing stock. The net impact is a loss of
 Rs.849 lacs charged to the Profit & Loss Account. Accretion to Stock
 also includes Rs.748.44 lacs accounted for on reconciliation of plots
 sold in projects completed in the earlier years.
 
 7.  Segment Reporting
 
 a) Having regard to integrated nature of real estate development
 business of the Company, the requirement of Segmental Reporting
 pursuant to Accounting Standard (AS-17) is not applicable.
 
 b) The Companys windmill power project, in terms of revenue and assets
 employed, is not a reportable
 segmentaspertheAccountingStandardAS-17onSegmentReporting.
 
 8.  Details of Managerial Remuneration
 
 a) Computation of net profit in accordance with Section 198 of the
 Companies Act, 1956 and the commission payable to Whole Time Directors
 including Chairman.