Atlanta

(1) Contingent liabilities not provided for:
 
 a) Guarantees given by the banks on behalf of the Company Rs.
 47,00,90,932/- (Previous year Rs. 62,47,47,822/-).
 
 b) Unexpired Letters of Credit Rs.25,06,25,503/- (Previous year Rs.
 34,01,13,551/-)
 
 c) Claims against the Company not acknowledged as debts
 
 d) Corporate guarantee given to Bank and Financial Institution on
 behalf of group company (M/s.Balaji Tollways Ltd) amounting to
 Rs.1,10,00,00,000/-(Previous year 1,10,00,00,000) against term loan
 availed by them .
 
 (2) 7 year National Saving Certificates and Kisan Vikas Patra of the
 face value of Rs. 8,35,200/- (Previous year Rs. 8,35,200/-) have been
 lodged as security with Municipal Corporation, Mumbai.
 
 (3) In the opinion of the Management, the current assets, Loans and
 Advances and Current Liabilities are approximately stated if realized
 in the ordinary course of business. The balances of debtors, creditors
 and Loans & Advances are subject to confirmation and reconciliation, if
 any. The provisions for all other liabilities is adequate and not in
 excess of the amount reasonably necessary.
 
 (4) Amount paid as Compensation for short-term loans availed by the
 company are treated as discounting charges by the company and has been
 merged with interest and financial charges.
 
 (5) In the matter of Arbitration in respect of dispute and difference
 arising out of the contract and construction of Runway at Arkonam, the
 Arbitrator made the award on 24.6.1999 and awarded an amount of
 Rs.14.12 crores and interest of Rs.11.84 crores aggregating to Rs.25.96
 crores in favour of the company. The contracting authoritiy, not
 accepting the award, appealed to the Madras High Court against the
 arbitration award. On 30th January,2009, Honorable Madras High court
 decided the matter by dismissing the appeal filed by contracting
 authority and granted the decree in terms of the award in favour of the
 company. In terms of the said order of the Honorable High Court, the
 company is entitled to receive an award amount of Rs.  50,81,57,443/-
 which includes the original award amount, interest thereon and other
 cost etc. The company, in view of the favorable decision by the
 Honorable Madras High Court, has recognized the said amount as contract
 revenue in the accounts in the year under review.
 
 (6) The company, following the principle of prudence, conservatism and
 matching principle of cost and revenue in an EPC contract for
 Engineering, Designing, Procuring and Construction of road project in
 Nagpur provides for expenditure on such contract so that profit from
 the contract is accrued proportionately in relation to the physical
 progress of the work throughout the contract. In view thereof, in this
 account an amount of Rs.11,35,40,255.50 (net of last years provision
 of Rs.27,03,37,435.00) has been adjusted in the Operating expenses.
 
 (7) The Government of Maharashtra, Public Works Department (PWD) vide
 agreement dated 18.10.2000 originally awarded a contract of
 construction of Mumbra - Kausha By-pass Project on NH - 4, Mumbai Pune
 Road on Built, Operate & Transfer (BOT) basis for a concession period
 of 6 years and 9 months (including construction period).
 
 Subsequently, due to change in the scope of work, a supplementary
 agreement dated 11.5.2005 was entered which increased the concession
 period to 10 years, 4 months and 25 days.
 
 The Government of Maharashtra vide Notification dated 27.12.2007
 authorised the company to collect the toll from the vehicles passing
 through the said road effective from 28.12.2007 to 11.9.2010 as per the
 supplementary agreement.
 
 However, the company made a representation before the Contracting
 Authority for enhancement of the concession period for various reasons
 including change in scope of work. Based on such representations, the
 PWD has recommended to the concerned Authority the enhancement of
 concession period from 10 years, 4 months and 25 days to 24 years, 1
 months and 17 days.
 
 In the year under review and based on further material developments,
 the management is reasonably certain about the enhancement of
 concession period as stated above. In view of this, the toll collection
 rights are amortized in the manner whereby the total cost of the
 project i.e. Rs.139,88,80,114/- is written off over the proposed
 enhanced concession period of 24 years, 1 month and 17 days. The
 company, therefore, amortized the toll collection rights at
 Rs.8,37,20,644/- , as against the amortization of Rs.51,97,33,268/-
 based on the concession period notified by the contracting authority.
 
 (8) In pursuance on announcement dated March,29,2008 of the Institute
 of Chartered Accountants of India on Accounting of Derivatives, Mark to
 Market Loss on outstanding derivative instruments as on March.31,2009
 stood at Rs. 13,51,17,454/- in respect of Rupee Foreign Currency Swap
 Transaction. The company does not hold or issue derivate financial
 instruments for trading or speculative purpose and all the derivates
 entered in to by the company are to mitigate or offset the risk that
 arise from their normal business activities only.  Pending the
 quantification of actual loss or gain on the expiry of derivate
 contract with the authorized dealer the company has not provided for
 the Mark to Market Losses in the interim period.
 
 (9) The company had on 08-12-2006 allotted 27,00,000 convertible
 warrants of Rs.10/- each at Rs.317.50 (Rs. 10 face value and Rs.
 307.50 premium) aggregating to Rs.8,57,25,000/- on a preferential basis
 to promoters and other parties pursuant to the resolution passed by the
 shareholders at their meeting held on 23-11-2006.
 
 In accordance with terms of issue, a sum equivalent to 10% of the issue
 price, i.e. Rs. 31.75 per warrant aggregating to Rs.8,57,25,000/- was
 received by the company.
 
 These warrants were convertible in to equity shares of Rs.10/- each
 fully paid, at conversion price Rs. 317.50 per share, subject to the
 terms of issue. These warrants were to be converted at the option of
 the holders at any time with in 18 months from the date of issue i.e.
 08th December, 2006 in to one fully paid up equity share of Rs. 10/-
 each.
 
 As per the terms of issue of warranto and provisions of SEBI Guidelines
 for preferential issue, the warrant holders should pay the balance
 amount and exercise their option to convert these warrants in to equity
 shares on or before 18 months from the date of allotment of warrants
 i.e. on or before 07-06-2008. However warrant holders did not exercise
 the option within stipulated time. Accordingly the said warrants stood
 cancelled and the amount of Rs, 8,57,25,000/- being the application
 money has been forfeited and credited to Capital Reserve.
 
 (10) On 5th April,2008 the company acquired 1,18,16,000, 50%
 Convertible Preference Shares of Rs.10/- each at a premium of Rs.40 per
 share in M/s.Balaji Tollways Limited.which were to be converted into 5
 equity shares of Rs.10/- each at a later date. Subsequently, with the
 mutual consent, the conversion of preference shares was accelerated and
 the said preference shares were converted into one equity share of
 Rs.10/- each against one preference share of Rs. 50/- each during the
 year under consideration. Accordingly on 20th Febuary,2009. the company
 acquired 1,18,16,000 equity shares of Rs. 10/- each at a premium of
 Rs.40/- per share in the said company.
 
 (11) In accordance with the requirements of Accounting Standard AS-26
 Intangible Assets the balance preliminary expenses have been charged
 off to profit and loss account as against the earlier policy of
 charging 20% of the expenses. Accordingly profit after tax is lower by
 Rs. 39,11,071/-
 
 (12) Loans & Advances includes:
 
 i) An amount advanced to firms where company is partner amounting to
 Rs. 38,95,94,462/-towards current account.(Previous year Rs.
 30,22,27,760/-Maximum amount outstanding during the year
 Rs.41,35,19,301/- Previous year Rs. 33,64,17,200/-)
 
 ii) An amount advanced to Joint Venture where company is member
 amounting to Rs. 1,96,36,441/-towards current account.  (Previous year
 Rs. 30,22,27,760/-) Maximum amount outstanding during the year
 Rs.1,96,36,441/- (Previous year Rs. 5,42,62,756/-)
 
 iii) An amount of Rs. Nil advanced to companies / firms / parties who
 are relatives of the directors towards allotment / distribution of
 units in the completed project. [Previous Year Rs. (81,00,000/-)]
 Maximum amount outstanding during the year Rs. Nil [(Previous Year Rs.
 (81,00,000/-)].
 
 (13) Deferred Tax
 
 a) In compliance with Accounting Standard - 22 (AS - 22) on Accounting
 for Taxes on Income issued by the Institute of Chartered Accountants
 of India in respect of the deferred tax liability arising on account of
 timing difference for the current financial year, a sum of
 Rs.1,85,91,251/- has been accounted as deferred tax asset.
 
 (14) Income-tax assessments have been completed up to assessment year
 2004-2005 (31st March, 2004)
 
 (15) Sundry debtors includes :
 
 a) Sum of Rs. Nil (Previous Year Rs. 2,35,33,031.50/-) due from a
 company under the same management.
 
 b) Sum of Rs. 80,75,94,153/- (Previous Year Rs.90,38,65,592/-) due from
 a Joint Venture where company is a member.
 
 (16) Disclosure as per Accounting Standard -15 (Revised)
 
 a) Defined Contribution Plan
 
 The Company has recognized, in the Profit and Loss Account for the year
 ended 31s1 March,2009, contribution to provident fund amounting to Rs.
 13,16,728/- as expenses under defined contribution plan under the head
 Contribution to Provident and Other Funds in schedule -15 - employees
 Emoluments and Benefits.
 
 (17) Segment Information
 
 The company is engaged in the business of contracting activities i.e.
 construction and development of infrastructure. The entire operations
 are governed by the same set of risk and rewards and there fore the
 same has been considered as representing single primary business
 segment. The company operates with in a single geographical segment
 i.e. India. In view of this, the disclosure requirements of Accounting
 Standard (AS-17) Segment Reporting issued by the Institute of
 Chartered Accountants of India are not applicable.
 
 (18) There was no impairment Loss on fixed assets on the basis of
 review carried out by the Management in accordance with the Accounting
 Standard - 28 Impairment of Assets issued by the Institute of
 Chartered Accountants of India
 
 (19) Related Party Disclosures:
 
 As per the Accounting standard - 18 Related Party Disclosure issued
 by the Institute of Chartered Accountants of India, the disclosure of
 transactions with related parties as defined in the Accounting Standard
 for the period ended 31s1 March, 2009 is given below:
 
 A) List of Related Parties
 
 - Key Management Personnel and Their Relatives Rajhoo Bbarot Bhavana
 Bbarot Rikiin Bbarot Rekha A. Barot Ambalal P.Barot Ridhima M.Doshi
 Mitul M.Doshi Rajendra Barot HUF Ambalal P. Barot HUF G. Radhakrishnan
 Associates and Joint Ventures Prakash-Atlanta Joint Venture
 Gammon-Atlanta Joint Venture AAP Construction Company Balaji Tollways
 Ltd.  ABT Developers Atlanta Thakural Constructions Shreenath Builders
 
 Enterprises over which key Management Personnel is able to exercise
 significant influence.
 
 Atulraj Builders Pvt. Ltd
 
 Shrikant Studio Pvt.Ltd
 
 Ideal Toll Road Investments & Operations Pvt. Ltd.
 
 (As identified and certified by the Management and relied upon by the
 auditors. For details of transactions entered into with the related
 parties refer Annexure - 1)
 
 (20) The company has option to claim deduction under Section 80 IA of
 the Income Tax Act, 1961 in respect of toll collection income of BOT
 infrastructure project. The company has made provision for Minimum
 Alternative Tax (MAT) of Rs.2,85,00,000/- considering the future
 expected benefits.
 
 (21) Previous years figures have been regrouped and rearranged
 whenever necessary.