1. a) Estimated amount of contracts remaining to be executed on capital
 account and not provided for (net of advance) is Rs.1530.83 Lacs
 (Previous Year Rs. 383.36 Lacs).
 
 b) Contingent Liabilities not provided for in respect of Outstanding
 Bank Guarantees of Rs. 86.80 Lacs (Previous Year Rs. 120.31 Lacs) and
 Letters of Credit of Rs.5.14 Lacs (Previous Year Rs.5.14 Lacs)
 furnished by the bankers on behalf of the Company are secured by pledge
 of FDRs with banks of Rs. 12.63 Lacs (Previous Year Rs. 13.63 Lacs).
 
 c) The Joint Commissioner (Appeals) vide Order dated 31.05.2005 quashed
 the order of Assessing Authority, Trade Tax, Agra imposing demand of
 Rs. 241.72 Lacs for the financial year 1998-99 and directed the
 Assessing Authority to re-examine the case. The Company has filed a
 writ in the High Court, Allahabad against the said order to the extent
 of re-examination of the case by the Assessing Authority which has been
 admitted and interim order has been passed to stay the proceedings till
 writ is finally disposed off.
 
 d) The Company had imported Capital Goods under Export Promotion
 Capital Goods Scheme (EPCG), under which, the Company is required to
 fulfil export obligation equavalent to the duty saved on import. The
 Liability aggregating to Rs.99.12 Lacs (Previous year Rs.459.92 Lacs)
 may arise alongwith interest @ 15% p.a. as on 31st March, 2008 in the
 event of non-fulfillment of export obligation. However, the foreign
 exchange earnings of the Company are more than sufficient to meet the
 existing liabilities.
 
 e) In respect of demand of DVB for Rs. 9.82 Lacs, the Arbitrator
 appointed by High Court, Delhi decided the case in favour of the
 company and the company has moved an application before the High Court
 for confirmation of decree plus interest which is pending for final
 orders (Previous Year Rs. 9.82 Lacs).
 
 f) Demand raised for Rs.5.45 Lacs (Previous Year Rs.5.45 Lacs) by Nagar
 Palika Parishad, Mussoorie towards Conservancy Tax in respect of the
 hotel at Mussoorie which was on lease with the Company during 1998-99.
 The High Court, Nainital, Uttranchal quashed the demand and directed
 the District Court, Dehradun, Uttranchal to re-assess the liability
 based on the actual services rendered by Nagar Palika Parishad,
 Mussoorie. The matter is pending before the District Court, Dehradun
 for final orders. The liability is unascertained.
 
 g) Demand of Income Tax Department for the Assesment Year 2002-03
 (Accounting Year 2001-02) for Rs. 12.32 Lacs (Previous Year 12.32 Lacs)
 though paid was quashed by the Income Tax Appeallate Tribunal New
 Delhi. The Income Tax department has filed an appeal, which is pending
 before the Honble High Court of Delhi.
 
 2 i) Issued, subscribed and paid-up capital includes 43,20,000 fully
 paid-up equity shares allotted without payment being received in cash
 in terms of Scheme of Amalgamation implemented in 1983-84.
 
 ii) 4,00,49,943 equity shares of Rs. 10/- each fully paid-up.  being
 72.18% of the paid-up equity capital, are he d by Jaiprakash Associates
 Limited, the holding Company.
 
 3 Secured Loans
 
 i) Long term loan from Oriental Bank of Commerce is secured by way of
 first charge on all the present and future immovable and movable
 properties / assets and fixed assets of the Company (excluding to the
 extent it is charged by way of primary security against cash credit
 facility from Indian Overseas Bank). The loan is further secured by
 personal guarantee(s) of some of the Directors cf the Company.
 
 ii) Cash Credit facility from Indian Overseas Bank is secured by way of
 first charge over the whole of the Inventories and Book Debts of the
 Company.
 
 4 Conveyance Deed in respect of Ahmedabad office is yet to be executed.
 However, the Company has already taken possession from the Society viz.
 Sanukt Members Association, as per rules of the Society of which the
 Company is a member.
 
 5 Capital Work in Progress Rs.138.37 Lacs (Previous Year Rs.  746.29
 Lacs) includes incidental expenses Rs.5 61 Lacs (Previous Year Rs.
 78.32 Lacs).
 
 6 Balances with Scheduled Banks include Rs. NIL (Previous Yeai Rs. 2.31
 Lacs) in Exchange Earners Foreign Currency Account
 
 7 Sundry Debtors includes Rs. 48,34,383/- due from Jaiprakash
 Associates Limited (JAL) - Holding Company) and Rs. 13 302/- from JIL
 Information Technology Limited and Rs. 1,44,497/ from Jaypee Infratech
 Limited - Associate and Fellow Subsidiaries respectively which are
 under the same management as per Section 370 (1B) of the Companies Act.
 
 8 In the opinion of Board of Directors, the current assets, loans and
 advances have a value on realisation in the ordinary course of
 business atleast equal to the amount at which these are stated in the
 Balance Sheet.
 
 9 No provision has been made in the accounts in respect o:
 
 i) Demand raised by Income Tax Department for the Financial Year
 2000-01 (Assessment Year 2001-02) for Rs. 23.14 Lacs (Previous Year Rs.
 23.14 Lacs) though paid but contested by the Company. The matter is
 subjudice and pending before CIT (Appeals), New Delhi.
 
 ii) Income Tax Demand towards penalty of Rs. 7.90 Lacs for the
 Financial Year 2002-03 (Assessment Year 2003-04) as per Order dated
 31.03.2008. An appeal is being filed against the said order with C.I.T.
 (Appeals).
 
 iii) Demand towards penalty and fine raised by Directorate General of
 Foreign Trade (DGFT) on import of cars under EPCG Licence. An appeal
 has been filed before the Additional Director General of Foreign Trade
 (Appeals) which is pending for final orders.
 
 10 Based on the information/documents available with the Company, there
 are no dues to Micro, Small and Medium Enterprises as defined in the
 Micro, Small and Medium Enterprises Development Act, 2006,as at
 March,31 2008.
 
 11 Wherever the balance confirmation is not available from the parties,
 the balances as appearing in the books of account have been considered.
 
 12 Depreciation on fixed assets has been provided on straight line
 method on prorata and on single shift basis as under: -
 
 i) On assets acquired after 16.12.93 as per revised rates given in
 Schedule XIV made applicable w.e.f 16.12.93.
 
 ii) On assets acquired after 02.04.87 but before 16.12.93 on the rates
 given in schedule XIV applicable prior to 16.12.93.
 
 iii) On assets acquired prior to 02.04.87 on the rates specified in
 Income Tax Act, 1961 in the respective years of acquisition.
 
 iv) Depreciation amounting to Rs.54.74 Lacs on assets of Jaypee Vasant
 Continental for the year 1986 - 87 had not been provided as the Hotel
 remained closed during that year.
 
 v) In case of addition made to the existing fixed assets, the rate of
 depreciation has been reworked on the balance determined life of the
 particular asset.
 
 vi) Leasehold land (Perpetual Lease) in respect of both the hotels at
 Delhi are not being amortised.
 
 13 During the year, the Company satisfied the demand of Custom
 authorities on account of Custom Duty, interest and fine as per the
 orders of Settlement Commission dated 27.02.2008 and the payment so
 made has been adjusted in the Books of Accounts appropriately.
 
 14 The proportionate amount of depreciation of Rs. 1.43 Lacs on
 revalued assets provided during the year has been set off against
 Revaluation Reserve.
 
 15 i) Interest under the head Interest And Financial Charges includes
 Rs. 310.49 Lacs (Previous Year Rs. 388.19 Lacs) paid to bank on Term
 Loans and Rs. 127.52 Lacs paid to Custom Authorities on the shortfall
 in the assessed liability of Custom Duty deposited.
 
 ii) As the life span of the hotel accounting software is short due to
 constant technological upgradation, the cost of software amounting to
 Rs. 23.36 Lacs has been considered as Repair & Maintenance (Others).
 
 iii) Miscellaneous expenses under the head Administrative expenses
 includes net balance of prior period income and expense amounting to
 Rs. 2.81 Lacs.
 
 16 The provision for tax charged to the Profit & Loss Account has been
 made as per the provisions of Income Tax Act, 1961.
 
 19 Interest on Security deposits with government departments has been
 accounted for on cash basis.
 
 20 The Value of Input service availed during the financial year has
 been accounted for net of service tax in the books and admissible
 credit has been availed against service tax payable on taxable output
 services as per CENVAT Credit Rules. 2004.
 
 21 (a) In terms of Accounting Standard (AS) 28, the assets are not
 impaired because the recoverable amount of fixed assets collectively
 determined by the present value of estimated future cash flows is
 higher than its carrying value.
 
 25 Additional Information pursuant to provisions of Schedule - VI, part
 - II of the Companies Act, 1956
 
 A) Pursuant to the requirement of Section 211 (4) of the Companies Act,
 1956, the Company has applied to Department of Company Affiaris on 31st
 October, 2007 for granting waiver from giving quantitative details of
 Turnover, Opening and Closing Stock, purchase, Production and
 Consumption of Raw Materials. This application is pending with the
 Department of Company Affiars as on date.
 
 26 All figures have been rounded off to the nearest rupee.
 
 27 Previous years figures have been rearranged/ regrouped wherever
 found necessary so as to make it comparable with the current year.