Terms/rights attached to shares :
 
 The Company has only one class of shares i.e. equity shares of Rs 10/-
 each. Shareholders are entitled to vote in accordance with their
 shareholding in the Company and receive dividend as and when declared
 by the Company.
 
 In the event of liquidation of the Company, the holders of equity
 shares will be entitled to receive remaining assets of the Company,
 after distribution of all preferencial amounts. The distribution will
 be in proportion to the number of equity shares held by the
 shareholder.
 
 Details of securities provided:
 
 i) secured redeemable Non-Convertible debentures:-
 
 a) secured redeemable non-Convertible debentures (Listed):-
 
 i) 11,500 (11,500) Secured Redeemable Non-Convertible Debentures of Rs
 10.00 lacs each fully paid carrying interest at the rate of 12% p.a.
 payable quarterly are issued on Private Placement basis to various
 banks. Secured by Non-agricultural Land admeasuring to about 173.40
 acres i.e. 7,01,992 Sq. mtrs. situated at village Kasarali, Taluka
 Vasai, District Thane which is owned by Privilege Power and
 Infrastructure Private Limited, a wholly owned subsidiary of the
 Company. These Secured Non-Convertible Debentures are redeemable
 commencing from December, 2012 onwards at 33% each in third and fourth
 year and 34% at the end of fifth year.
 
 ii) 5,175 (4,250) Secured Redeemable Non-Convertible Debentures of Rs
 10.00 lacs each fully paid carrying interest at the rate of 12% p.a.
 payable quarterly are issued on Private Placement basis to various
 banks. Secured by Non-agricultural Land admeasuring to about 36.36
 acres situated at Village Kopri, Taluka Vasai, District Thane which is
 owned by Privilege Power and Infrastructure Private Limited a wholly
 owned subsidiary, of the Company. These Secured Non-Convertible
 Debentures are redeemable commencing from March, 2013 onwards at 33%
 each in third and fourth year and 34% at the end of fifth year.
 
 b) secured redeemable non Convertible debentures (non listed) : -
 
 i) a) 2,267 (4,168) Secured Redeemable Non-Convertible Debentures of Rs
 10.00 lacs each fully paid carrying interest with a floor of 13.25%
 p.a. payable monthly are issued on Private Placement basis to Life
 Insurance Corporation of India. The debentures are secured by 2,88,940
 Sq. mtrs Non-agricultural land situated at Village Doliv and Village
 Khardi, Vasai, District Thane and further secured by mortgage of first
 to nine floors except 3rd, 4th and 6th floors of commercial building
 area admeasuring 1,95,846 Sq. ft. situated at HDIL Towers, Bandra
 (East), Mumbai. As per the revised terms of the Debentures, these
 Secured Non- Convertible Debentures are redeemable in equal monthly
 installment of Rs 1,000 lacs commencing from 1st September, 2012.
 
 b) Securities of the debentures issued to Life Insurance Corporation of
 India are shared on pari-passu basis for the term loan from Life
 Insurance Corporation of India.
 
 ii) 500 (500) out of the total issue size of 2000, Secured Redeemable
 Non- Convertible Debentures of Rs 10.00 lacs each fully paid carrying
 interest @ 11.50% p.a. payable quarterly are issued on Private
 Placement basis to Bank of India. Secured by registered mortgage of
 Land admeasuring 395.24 Sq. mtrs. situated at survey no. 255
 (comprising of old survey no. 255 and 256/03), mauje Maharajpura,
 Taluka Kadi, Mehsana, Gujarat. As per the revised terms of the
 Debentures these Secured Non-Convertible Debentures are redeemable in
 fortnightly installment of Rs 500 lacs each commencing from June, 2012.
 
 ii) All the above debentures have been personally guaranteed by
 executive Chairman and Vice Chairman & Managing director of the
 Company.
 
 iii) IDBI trustee is the trustee to all the above debentures issued.
 
 Details of securities provided:
 
 I) Loans repayable on demand from Bank:-
 
 punjab and Maharashtra Co-operative Bank Limited:-
 
 Secured by pledge of fixed deposit receipts with the bank, current rate
 of interest 10%p.a.
 
 II) Loans from scheduled Banks:-
 
 a) Bank of India :-
 
 Secured by registered mortgage of free sale component to be generated
 on the piece and parcel of Land bearing survey No. 236A and 194 (pt)
 admeasuring about 18,199.08 sq. mtrs. on the property situated at
 Ghatkopar (East) together with buildings constructed or to be
 constructed thereon. The term loan repayable in 48 equal monthly
 installment of Rs 208.35 lacs commencing from April, 2011. The rate of
 interest is BPLR   0.75% p.a.
 
 b) Central Bank of India :-
 
 Secured by registered mortgage of property admeasuring 10 acres
 situated at Premier Road, Off. LBS Marg, in Greater Mumbai, Village
 Kurla, Taluka Kurla, Mumbai. Rate of interest BPLR  0.50% payable
 monthly. Repayable in 12 equal bi-monthly installment of Rs 2,500 lacs
 each commencing from June, 2011.
 
 c) punjab national Bank:-
 
 i) Secured by equitable mortgage of land admeasuring 2,50,015 sq.mtrs.
 at Village Shirgaon, Chandansar Road, Virar (E), Taluka Vasai, District
 Thane. Rate of interest is BPLR TP   1.50%. Repayment in 12 quarterly
 installment of Rs 1,666.67 lacs each from July, 2010.
 
 ii) Secured by pari passu charge on registered mortgage of all the
 rights in Land admeasuring 15,554.55 Sq. mtrs. bearing CTS No. 866B (1)
 at Village Ambivali, Taluka Andheri, Mumbai Suburban District as well
 as FSI pertaining to the plot of land bearing CTS 866-A admeasuring
 93,327.40 sq. mtrs and right to TDR of the entire layout of 1,24,436.50
 sq. mtrs.  Rate of interest is BPLR  TP  3%. Repayment in 12 quarterly
 installment of Rs 2,083.33 lacs each from 18th June, 2010.
 
 d) punjab and sind Bank:-
 
 i) Secured by 1,52,955 sq. mtrs. of non-agricultural plot of Land
 situated at Village Chandansar, Virar (E) owned by Privilege Power and
 Infrastructure Private Limited, a wholly owned subsidiary of the
 Company carrying interest at BPLR   0.25%   TP   RP payable monthly.
 Repayment in 36 equal monthly installment of Rs 277.78 lacs each from
 August, 2009.
 
 ii) Secured by exclusive charge on B & D Wings out of A, B, C & D
 wings, equivalent to 6,75,500 sq. ft. of saleable area of the building
 Majestic Tower, at Village Nahur, Mulund, Mumbai, on the Plot of CTS
 300/ A-1 and 1021/B of Village Bhandup and CTS No. 771 of Village
 Nahur, Mulund, Mumbai. Rate of Interest PLR   1% payable monthly.
 Repayable in 36 monthly installment of Rs 347.22 lacs each after
 moratorium of 24 months from the date of first disbursement.
 
 e) the Jammu and Kashmir Bank :-
 
 Secured by mortgage of Land situated at village Kopri, Virar (East)
 Taluka Vasai, District Thane admeasuring 2,91,610 sq mtrs.  Interest
 rate is Base rate  3.50%. Repayable in 12 quarterly installment of Rs
 834 lacs each after moratorium of two years from first disbursement.
 
 f) uco Bank :-
 
 Secured by pari-passu charge on registered mortgage of all the rights
 in land admeasuring 15,554.55 sq. mtrs. bearing CTS No. 866B (1) at
 Village Ambivali, Taluka Andheri, Mumbai Suburban District as well as
 FSI pertaining to the plot of land bearing CTS 866-A admeasuring
 93,327.40 sq.mtrs and right to TDR of the entire layout of 1,24,436.50
 Sq.mtrs. Rate of interest BPLR   0.50% with monthly rests. Repayable in
 16 quarterly installment of Rs 1,563 lacs each after moratorium of 12
 months from the date of first disbursement.
 
 g) oriental Bank of Commerce:-
 
 Secured by exclusive charge on A & C Wings out of A, B, C & D wings,
 equivalent to 6,75,500 sq. ft. of saleable area of the building
 Majestic tower, at Nahur, Mulund, Mumbai, on the Plot of CTS 300/ A-1
 and 1021/B of Village Bhandup and CTS No.  771 of Village Nahur,
 Mulund, Mumbai. Rate of Interest PLR   1% payable monthly. Repayable in
 36 monthly installment of Rs 347.22 lacs each after moratorium of 24
 months from the date of first disbursement.
 
 h) allahabad Bank:-
 
 i) Secured by registered mortgage over the total construction area of
 12,07,076 sq. ft. which includes free sale area admeasuring
 approximately 7,29,075 sq. ft. at CTS No. 551/27, 552(pt), 552/1, 552/5
 to 12 of Village Nahur, Taluka Kurla, ''T'' ward, Mumbai together with
 the structure standing thereon and further secured by 45,202 sq. mtrs.
 of Non- agricultural Land situated at Village Chandansar, Taluka Vasai,
 Dist. Thane, comprising of various survey numbers, owned by Privilege
 Power and Infrastructure Private Limited, a wholly owned subsidiary of
 the Company. Rate of Interest base rate   5% payable monthly. Repayable
 in 12 equal quarterly installments of Rs 1,250.00 lacs each after
 moratorium of 24 months from the date of first disbursement.
 
 ii) Secured by exclusive charge on Escrow account as well as equitable
 mortgage of land admeasuring 54,970 sq.mtrs at Village Maljipada,
 Taluka Vasai, Dist. - Thane, comprising of various survey numbers. Rate
 of interest is base rate  5% p.a. Repayable within 12 equal quarterly
 installments of Rs 625.00 lacs each after a moratorium of 24 months from
 first disbursement.
 
 i) syndicate Bank :-
 
 Secured by pari passu charge over escrow of Cash flows arising out of
 the project Whispering Tower and further secured by Non-agricultural
 Land situated at Village Doliv,Virar, admeasuring 21.65 acres owned by
 Privilege Power and Infrastructure Private Limited, a wholly owned
 subsidiary of the Company. Rate of Interest base rate   3% payable
 monthly. Repayable in 12 equal quarterly installments of Rs 834.00 lacs
 each after moratorium of 24 months from the date of first disbursement.
 
 III) Term Loans from Financial Institution:-
 
 a) IL & Fs:-
 
 Secured by registered mortgage of immovable properties admeasuring
 132.61 acres situated at Village Doliv, Khardi - 76 acres, Dahisar -
 23.5 acres, Sasunavghar - 30.11 acres and Kasarali - 3 acres, owned by
 Privilege Power and Infrastructure Private Limited, a wholly owned
 subsidiary of the Company. Rate of interest is 12.50% payable monthly.
 Repayment in 20 quarterly installment of Rs 1,977.45 lacs each
 commencing from August, 2012.
 
 b) Life Insurance Corporation of India:-
 
 i) Term loan is secured by registered mortgage of property situated at
 Village Doliv and Village Khardi admeasuring 2,88,940 Sq. mtrs. and
 further secured by mortgage of first to nine floors except 3rd, 4th and
 6th floors of commercial building area admeasuring 1,95,846 Sq. ft.
 situated at HDIL Towers, Bandra (East), Mumbai. Rate of interest is 13%
 p.a.  payable monthly. Repayment by 19 quarterly installment of Rs
 1,500.00 lacs each from November, 2010.
 
 ii) Securities of the Term loan from Life Insurance Corporation of
 India are shared on pari passu basis along with the security for
 debentures issued to Life Insurance Corporation of India.
 
 2.  contingent liabilities not provided for
 
 a) (i) Claims against the Company not acknowledged as debts 20,247.35
 20,247.35 (represented suits filed by the parties in the High Court,
 Bombay and disputed by the Company)
 
 (ii) Income-tax demands disputed by the Company (net of amounts
 28,564.58 - provided).
 
 The matters in dispute are under appeal. The demands have been
 paid/adjusted and will be received as refund if the matters are decided
 in favour of the Company.
 
 In the opinion of the management the above claims are not sustainable.
 
 b) Guarantees provided by the bank 3,034.20 3,024.20
 
 c) Against demand promissory note executed as security for performance
 27,500.00 27,500.00
 
 a) Gratuity plan:-
 
 I) The AS-15 stipulates that the rate used to discount post employment
 benefit obligation (both funded and non-funded) should be determined by
 reference to market yields at the Balance Sheet date on government
 bonds. The currency and terms of the government bonds should be
 consistent with the currency and estimated terms of the post-employment
 benefit obligation.
 
 II) Estimated future salary increases take account of inflation,
 seniority, promotion and other retirement factors, such as supply and
 demand in the employment market.
 
 B) Leave encashment liability :-
 
 I) The AS-15 stipulates that the rate used to discount post employment
 benefit obligation (both funded and non-funded) should be determined by
 reference to market yields at the Balance Sheet date on government
 bonds. The currency and terms of the government bonds should be
 consistent with the currency and estimated terms of the post-
 employment benefit obligation.
 
 II) Estimated future salary increases take account of inflation,
 seniority, promotion and other retirement factors, such as supply and
 demand in the employment market.
 
 * The Directors remuneration includes salary paid Rs 150 lacs to
 Executive Chairman and Vice Chairman and Managing Director for only one
 month. They have voluntarily forgone the remuneration for eleven
 months. The non-executive Directors have also voluntary forgone their
 commission by 50% of the entitlement.
 
 3. LEASE
 
 A) Assets given on lease:
 
 a) General description of leasing arrangement
 
 i) Leased assets: Leasing of commercial premises.
 
 ii) Future lease rentals are determined on the basis of agreed terms.
 
 iii) At the expiry of the lease term, the Company agrees to record the
 new terms and condition of their agreement in relation to lease of the
 Premises.
 
 b) Lease payment received or receivable for the year is recognised in
 the Statement of Profit and Loss Rs 1,359.96 lacs. (Previous year Rs
 1,850.17 lacs)
 
 B) Assets taken on lease:
 
 a) General description of leasing arrangement
 
 i) Leased assets: Residential premises.
 
 ii) Future lease rentals are determined on the basis of agreed terms.
 
 iii) At the expiry of the lease term, the Company agrees to record the
 new terms and condition of their agreement in relation to lease of the
 Premises.
 
 b) Lease payment paid or payable for the period is recognised in the
 Statement of Profit and Loss Rs 30.56 lacs. (previous year Rs 29.97 lacs)
 
 4.  related party disclosure
 
 - List of related parties with whom transactions have taken place
 during the current accounting year and relationship: Subsidiaries
 
 1.  Privilege Power and Infrastructure Private Limited
 
 2.  HDIL Entertainment Private Limited
 
 3.  Blue Star Realtors Private Limited
 
 4.  Ravijyot Finance & Leasing Private Limited
 
 5.  Excel Arcade Private Limited
 
 - Mazda Estates Private Limited
 
 7.  HDIL Commercial Properties Private Limited (upto 30.06.2011)
 
 8.  Guruashish Construction Private Limited
 
 9.  BKC Developers Private Limited
 
 10.  Lashkaria Construction Private Limited
 
 11.  HC Infracity Private Limited w.e.f. 30.11.2011
 
 Associates
 
 1. HDIL Leisures Private Limited
 
 Enterprise significantly influenced by key management personnel
 
 1.  Privilege Airways Private Limited
 
 2.  Privilege Industries Limited
 
 3.  Privilege Health Care Services Private Limited
 
 5.  2,60,00,000 Share Warrants of Rs 275/- each were allotted to one of
 the Promoter, after obtaining the necessarry approval from share
 holders and relevant authorities, which entitled for conversion of each
 warrant into one equity share of Rs 10/- each at a premium of Rs 265/-
 within a period of 18 months from the date of allotment. During current
 year 40,00,000 warrants have been converted into equity shares of the
 Company. The remaining 2,20,00,000 warrants were forfeited since the
 right to exercise the conversion of warrants has not been exercises.
 The allotment money received on these warrants of Rs 15,219.96 lacs has
 been forfeited as per the guidelines applicable to the issue of
 warrants.
 
 6.  Income tax Assessment have been completed upto Assessment year
 2010-11. The tax demand of Rs 34,114 lacs for the Assessment year
 2005-06 to 2010-11 has been determined by the Income Tax authorities.
 Company has preferred appeals which are pending for final disposal.