COMPANY OVERVIEW
 
 The company, Arihant Foundations and Housing Ltd was incorporated on
 6th March, 1992. The Company is engaged in the business of real estate
 development of residential, commercial complexes and IT Parks.
 
 1 CONTINGENT LIABILITIES, PROVISIONS AND CONTINGENT ASSETS
 
 i) Sales tax liability, if any on works contracts carried out by the
 company is considered by management as not material but if any
 liability arises it will be recovered from customers.
 
 ii) The income tax department has filed appeal against the order of the
 CIT (Appeal) before the income tax apellate tribunal for Asst Yr:
 2004-2005, 2005-2006, 2007-2008 and 2009-2010
 
 iii) Amount of service tax under dispute: Rs.23,16,081/- pertaining to
 period october 2004 to march 2007 (Previous year: Rs.23,16,081/- for
 the period october 2004 to march 2007)
 
 iv) HUDCO has filed a counter suit against the order of DRT to increase
 the interest rate payable from 9%. As such, the interest liability of
 the company may be increased
 
 v) The company may receive interest on amounts paid by it for various
 appeals which are pending.
 
 Notes:
 
 1.  The Company does not expect any reimbursements in respect of the
 above contingent liabilities.
 
 2.  It is not practicable to estimate the timing of cash outflows, if
 any, in respect of matters stated above pending resolution of the
 arbitration/appellate proceedings
 
 2. SEGMENT REPORTING
 
 The company is primarily in the business of real estate development and
 related activities including construction. Major exposure is to
 residential and commercial construction and development of IT parks.
 Further majority of the business conducted is within the geographic
 boundaries of India.
 
 In view of the above, in the opinion of the Management and based on the
 organizational and internal reporting structure, the company''s
 business activities as described above are subject to similar risks and
 returns. Further, since the business activities undertaken by the
 company are within India, in the opinion of the Management, the
 environment in India is considered to have similar risks and returns.
 Consequently the company''s business activities primarily represent a
 single business segment. Similarly, this business operations in India
 represent a single geographical segment.
 
 3 a) CONSERVATION OF ENERGY AND TECHNOLOGY ABSORPTION
 
 The company does not own any manufacturing facility. Hence, the
 requirements pertaining to disclosure of particulars relating to
 conservation of energy, technology absorption as prescribed under the
 Companies (Disclosure of particulars in the report of board of
 directors) Rules, 1988, are not applicable. However, the company has
 commissioned a device named power factor, which reduces the consumption
 of energy. The company has also taken intiative to reduce the power and
 fuel consumption.
 
 4  The exceptional item of Rs. 2,80,03,796/- as shown in the
 statement of profit and loss for the year ended 30th Sep- tember, 2012
 represents the provision created against the interest income.
 
 5  PREVIOUS YEAR FIGURES
 
 Previous year figures have been regrouped, rearranged and reclassified
 wherever considered necessary.
 
 6 PRIOR YEAR COMPARATIVES
 
 Till the year ended 30th September, 2011, the company was following
 pre-revised schedule VI to the Companies Act 1956, for the preparation
 and presentation of financial statements. During the year ended 30th
 Septemper, 2012, the revised schedule VI notified under the Act has
 become applicable to the company. The company has reclassified previous
 year figures to conform to this year''s clasification as per revised
 schedule VI. The adoption of revised schedule VI does not impact
 recognition and measurement principles followed by the company for the
 preparation of financial statements.  However, it significantly impacts
 presentation and disclosures made in the financial statements.
 Consequently, prior year figures are not comparable to those which are
 as per the revised schedule VI requirements.