1. Estimated amount of contracts remaining to the executed on Capital
 account (net of advances) Rs.38,53,47,326/- (Previous year
 Rs.24,50,67,930/-).
 
 2.  (a) Contingent liability in respect of property tax -
 Rs.78,21,151/- (Previous year 78,21,151/- ).
 
 The total demand raised by MCD was Rs.83, 85,604/-(Previous Year Rs.83,
 85,604/-). Against this, the company deposited the admitted liability
 of Rs.5, 64,453/-(Previous Year Rs.5, 64,453/-). For the balance amount
 of Rs.78, 21,151/- the company had filed a Writ Petition before the
 Hon''ble Delhi High Court. The company had also filed a stay petition
 before the Hon''ble High Court praying for stay for the payment of
 aforesaid amount of Rs.78,21,151/-. As per direction of
 
 Hon''ble Court the company has paid a sum of Rs.10, 18,477/-against the
 aforesaid demand and for the balance amount the company had been
 granted stay. The Hon''ble High Court directed MCD to re-compute the
 tax. In the opinion of management the demand raised by MCD is not
 sustainable and no further liability will arise and therefore the
 aforesaid amount of Rs.10, 18,477/- paid by the company is being shown
 as recoverable in the Balance Sheet under the head Loan & Advances.
 
 (b) Contingent liability in respect of income tax demand for which
 rectification/appeal has been filed with the appropriate authorities-
 Rs. 14,24,818/-(previous year 8,55,290/-).
 
 (c) Contingent liability in respect of Letter of Credit/Bank guarantee
 issued by bank Rs.4,11,69,840/- (previous year Rs. Rs.3,38,77,640/-).
 
 3.  The company had received a show cause notice dated 17.11.2006 from
 Delhi Development Authority (DDA) demanding a sum of Rs. 25868220/-
 (Excluding undetermined interest) on account of ground rent in respect
 of its property at Plot No. A- 2, 3 & 4 in District Centre, Wazirpur,
 Delhi upto the period 14th July, 2006. Aggrieved by show cause notice
 issued by DDA, the company filed a writ petition in the Hon''ble High
 Court of Delhi Challenging the aforesaid demand. The Hon''ble High
 Court, vide its order dated 4th December, 2006 set-aside the matter to
 DDA for reconsideration. DDA vide Notice dated 12.01.2010 demanded a
 sum of Rs.398.46 lacs (excluding interest) towards ground rent upto the
 period 14.07.2010. Aggrieved by the said demand, the company again
 filed a writ petition in the Hon''ble High Court of Delhi which vide its
 order dated 31.05.2010 stayed the operations of the order of DDA
 subject to company depositing a sum of Rs.100 Lacs. As per the
 direction of Hon''ble high court, the company has deposited the said
 amount pf Rs.100 lacs on 10.06.2010 which as a matter of prudence has
 been provided for as expense in the Profit & Loss Account under the
 head “Exceptional Items”.  The matter is pending for final disposal by
 the Hon''ble Court. The liability that may arise or will be ascertained
 only after the disposal of matter by the Hon''ble High Court of Delhi
 and therefore at this stage, in the opinion of management any further
 provision is neither considered necessary nor ascertainable. The effect
 of any arrear/excess amount will be taken after the decision of the
 Hon''ble Court.
 
 4.  One party has filed compensation application before MRTP Commission
 (now Competition Appellate Tribunal) praying either for allotment of
 booked flats or refund of booking amount of Rs.13,44,000/- paid in
 financial year 1995-96 to 1998-99 (Previous year Rs.13,44,000/-) along
 with interest @ 24% p.a. and compensation/damages. The company has
 contested the same and the proceedings are continuing.
 
 5.  In the opinion of the management, the company during the year was
 mainly engaged in the business of real estate developments and all
 activities of the company revolve around the main business and
 therefore there are no separate reportable segments as per Accounting
 Standard “Segment Reporting” (AS-17). The construction work in respect
 of company''s Hotel project at Gurgaon is under progress. There are no
 revenue during the year (previous year Nil) pertaining to Hotel
 project. Sum of Rs. 262,43,44,811/-(previous year Rs.198,85,03,906/-)
 has been incurred upto the year end for hotel project which is shown in
 the Balance Sheet under the head Capital Work in Progress.
 
 6.  Disclosure of related party transaction in accordance with
 Accounting Standard (AS-18) ‘ Related Party Disclosures'' is annexed.
 
 7.  In the opinion of the management, current assets, loans and
 advances are approximately of the value stated, if realised, in the
 ordinary course of the business.
 
 8.  Dividend Income of Rs.10,20,912/- (previous year Rs.14,21,917/-)
 is on Long Term Investments. Tax deducted at source on dividend Rs. Nil
 (Previous year Rs. Nil). Out of Dividend income Rs.8,16,740/- (Previous
 year Rs.10,20,927/-) is on Trade Investments and Rs. 2,04,172/-
 (Previous Year Rs. 4,00,990/- ) is on Non-Trade Investments.
 
 9.  Profit on sale of long term investments include profit of
 Rs.1,32,61,592/- (Previous year Rs. 5,00,90,700/-) on Trade Investments
 and Rs.7,11,051/- (Previous year Loss Rs.10,89,506/- ) on Non-Trade
 Investments.
 
 10.  Tax deducted at source on lease rentals including advance lease
 rentals Rs.33,12,427/-(Previous Year Rs. 58,10,083/-) and Rs.9,53,060/-
 (Previous year Rs.1,82,264/-) on interest on FDR with bank.
 
 11.  (a) To the extent information available with the company, Sundry
 Creditors include Rs nil, (Previous year Nil) due to Small Scale
 Industrial Undertaking.
 
 (b) The company has not received any information from suppliers
 regarding their status under the Micro, Small and Medium Enterprises
 Development Act, 2006. To the extent information available with the
 company, the company does not owe any sum including interest required
 to be disclosed under the said Act.
 
 12.  Other Income includes Rs. 95,07,831/- (Previous Year Rs
 18,22,639/-) interest income on FDR with Bank.
 
 13.  a) The Company had entered into an agreement with a party namely
 M/s Parsvnath Developers Ltd. for undertaking Real Estate development
 projects. The agreement had been made by way of Association of Persons
 (AOP) under the name and style of  Parsvnath Developers (AOP). Under
 the Agreement, the said AOP has taken up a real estate project at
 Mohali.  The company has to contribute/invest 57.50% as its share of
 Investments in the Project. Upto the year end, the company has
 invested/contributed Rs. 33,07,73,607/- (previous year
 Rs..33,07,73,607/-) for the project.  The Company has 50% share in
 Profit /Loss of the project.
 
 d) As per the notes forming part of the audited accounts of AOP, Land
 was allotted by Punjab Small Industrial & Export Corporation Limited
 (PSIECL) to Parsvnath Developers Limited (PDL) on free hold basis.
 Consideration for allotment of land was payable in yearly instalments
 with last instalment due on 23.12.2010. As on the date of balance
 sheet, Rs. 25,36,83,349 are overdue for payment to PSIEC. In terms of
 the agreement, failure to complete the construction within the
 stipulated time or non adherence to the payment schedule will entitle
 PSIECL to cancel the allotment and forfeit part of the amount paid. The
 cancellation can be made after giving a Show Cause Notice. The Entity
 is pursuing with PSIEC and is hopeful of getting extension of
 construction period and payment schedule.
 
 In the opinion of management, no prejudice will be caused to the
 company''s investments made in AOP.
 
 14. (b) A sum of Rs.22,00,000/- was paid to various vendors towards
 booking of 22 flats in Prem Dohil Sadan, Rajendra Place, New Delhi by
 HB Stockholdings Ltd.(HBSL) (previously known as HB Portfolio Leasing
 Ltd.) in 1994 . In the year 1997 HBSL was trifurcated under a Scheme of
 Arrangement sanctioned by the Delhi High Court whereby the Real Estate
 Division of the said HBSL was allocated to the company.  The aforesaid
 amount of Rs.22,00,000/- thus became a part of the assets of the said
 Real Estate Division and thus became property of the company.
 
 On Default by the vendors to hand over Possession of the flats on the
 agreed terms, Legal Proceedings (Civil Suits) were initiated by HB
 Stockholdings Ltd. (HBSL) against the vendors in appropriate court of
 law for specific performance of the agreement. Vide its order dated
 30-05-2007, the Court decreed the civil suits in favour of HBSL and
 against the vendors by granting monetary compensation by way of damages
 @ Rs.3,00,000/- per flat (i.e. totalling to Rs.66 lacs) along with
 interest @ 9% p.a. w.e.f. 22/06/1999. HBSL preferred an Appeal against
 the said order in the Delhi High Court for specific performance.
 Appeals were also filed by the opposite party.
 
 During the year, in terms of Hon''ble Delhi High Court''s order dated
 02.02.2011 and as per the compromise between the parties, the aforesaid
 compensation of Rs.66 Lacs was substituted by an amount of
 Rs.3,05,65,127/-. Accordingly sum of Rs.2,83,65,127/-(Rs.3,05,65,127
 being damages/compensation received - Rs.22,00,000 being the amount
 paid in earlier year to the vendors) has been accounted for as income
 on account of Damage/compensation received.
 
 15.  (a) Expenditure in foreign currency:
 
 – Travelling                    Rs. 17,65,849/-(previous 
                                     year Rs. 5,44,412/-)
 
 – Professional & Technical Fees Rs. 1,25,43,528/-(previous 
                                     year Rs.32,70,347/-)
 
 – Capital Goods                 Rs. 8,01,31,577/-(Previous 
                                     year Rs. 7,10,874/-)
 
 16.  Disclosure pursuant to Accounting Standard - 15
 
 a) The company has adjusted Rs. 4059/-(Previous Year Rs.22,515/) -net
 of deferred tax of Rs.1949/-(previous year Rs.11,199/-) towards the
 transitional effect of defined benefit obligation in respect of
 employee benefits up to the previous year to the opening balance of
 General Reserve.
 
 17.  The nature of activities of Company is such that quantitative
 information regarding inventories can not be given.
 
 18.  Additional information pursuant to part IV of Schedule VI to the
 Companies Act, 1956 is annexed.
 
 19.  Previous year figures have been re-grouped / re-arranged wherever
 considered necessary.
 
 20.  Schedule 1 to 11 form an integral part of the accounts.
 
 
 Related party disclosures(as identified by management and relied upon
 by Auditors)
 
 As per Accounting Standard (AS-18) on “Related Party Disclosures”, the
 disclosure of transactions with the related party as defined in the
 Accounting Standard are given below :-
 
 1.  List of Related parties with whom transactions have taken place and
 relationship
 
 (a) Key Managerial Personnel
 
 Mr. Biren Patra (Left on 01.03.2011 )
 
 (b) Person having significant influence/control/major shareholders
 
 (i) Sh. H.C. Bhasin 
 
 (ii) Sh. Lalit Bhasin
 
 (C) Enterprises over which significant influence/control exist of the
 relatives of persons mentioned in (b) above
 
 (i) RRB Master Securities Delhi Ltd.
 
 (d) Enterprises under direct or indirect common control/significant
 influence
 
 (i) HB Stockholdings Ltd.
 
 (ii) HB Portfolio Ltd.
 
 (iii) HB Securities Ltd.(Subsidary of HB Portfolio Ltd.)
 
 (iv) HB Leasing & Finance Co Ltd.
 
 (v) RRB Securities Ltd.
 
 (vi) RRB Masterholdings Ltd.(Subsidary of RRB Securities Ltd.)
 
 (e) Enterprises under control/Joint ventures
 
 (i) Parsvnath Developers (AOP)