1.1.1 Secured short term loan from Banks - Rs. Nil ( previous year Rs.
 95.75 lacs ) is taken from UCO Bank. This demand loan facility is
 repayble on demand and the same is secured by fixed deposits placed
 with the same bank. The Fixed Deposits are taken out of funds earmarked
 for payment to customers. The rate of interest on these short term
 loans is 9.5% pa.
 
 1.1.2 Secured short term loan from Banks - Rs. 243.59 lacs ( previous
 year Rs. 284.20 lacs) is taken from State Bank of India. This overdraft
 facility is repayble on demand and the same is secured by fixed
 deposits placed with the same bank. The Fixed Deposits are taken out of
 funds earmarked for payment to customers. The rate of interest on this
 short term loans / overdraft facility is 10.5% pa.
 
 1.1.3 The above loans are not personally guaranteed by directors or any
 other persons. There is no default in repayment of the said loans.
 
 1.1.4 Secured Short Term loans from other parties - Rs. 300 lacs (
 previous year Rs. 200 lacs) taken from Sankalp Realty Pvt. Ltd. This loan
 is repayble on demand and the same is secured by premises belonging to
 M/s. Lok Builders which is a sister concern. The rate of interest on
 this short term loan is Nil.
 
 1.2 Trade payables
 
 1.2.1 Trade Payables include a sum of Rs. 4,360 lacs (previous year Rs.
 4,365 lacs ) payable to Mr. Suresh Thanawala and others. This sum is
 overdue since 15-09-2008 however no provision for interest on delayed
 payment as per the terms of agreement with Mr. Suresh Thanawala has
 been made because the Company is under re-negotiation with Mr. Suresh
 Thanawala and others. The same will be provided as and when the claims
 are settled and to that extent the Company has Contingent Liability the
 amount of which is unascertainable. As per the agreement with Mr.
 Suresh Thanawala and others he has a charge over the Company''s
 property at Turbhe.
 
 1.3.1 Unpaid matured loans - Banks & Financial Institutions amounting
 to Rs. 4,961.59 lacs (previous year Rs. 4,580.29 lacs) is due to State Bank
 of India. The same is secured by mortgage of immovable property
 belonging to the Company situated at Turbhe, Ambernath and Lok Santa
 (Andheri). Provision for interest due on this loan has been made at 14%
 p.a. being the last contractual rate of interest.  No provision is
 being made for interest on unpaid interest as also for any penal
 interest and other charges. The loan is over due since 14-12-2007.
 
 1.3.2 The balance in the above mentioned loan of State Bank of India as
 per the Company''s books of accounts as on 31-03-2012 is Rs. 4,961.59
 lacs (previous year Rs. 4,580.29 lacs ) (including interest provision of
 Rs. 2,238.02 lacs (previous year Rs. 1,856.72 lacs). This balance is based
 on the settlement arrived at with the Bank vide its letter dated 14th
 June 2006. As per the said settlement the entire dues to the Bank was
 to be paid off by 14th December, 2007 to which the Company has not
 adhered. The Company is in continuous dialogue with the Bank to settle
 the dues. The Company has not received any formal notice terminating
 the settlement.  The Company has also not received any balance
 confirmation from the Bank. As per the legal advice received by the
 Company, the settlement agreement dated 14th June 2006 is valid,
 subsisting and binding on the parties till date. In view of the facts
 as mentioned herein it is not possible to ascertain whether the Bank
 has withdrawn the concessions granted in the settlement of 14th June
 2006.  Accordingly the final liability towards this Bank loan is not
 ascertainable. The Company has to that extent unascertainable
 contingent liability towards any additional claim which may be made by
 the Bank against this loan liability or also towards withdrawal of any
 concessions granted vide settlement terms dated 14th June 2006.
 
 1.3.3 Unpaid matured loans - Others, represents defaulted loans taken
 by the Company. These loans are unsecured. These loans are overdue
 since 1998-99. The Company has provided interest @18% p.a. on
 outstanding principal loans. The Company has defaulted in repayment of
 Unpaid matured loans - Others, taken from various parties, the
 outstanding principal loan is Rs. 175.27 lacs (previous year Rs. 177.77
 lacs ) and outstanding interest is Rs. 550.17 lacs (previous year Rs.
 520.51 lacs) .
 
 1.3.4 Unpaid matured loans - others includes Hire Purchase Finance Rs.
 10.44 lacs (previous year Rs. 44.55 lacs ), secured by hypothecation of
 leased assets. These were originally secured against leased assets in
 respect of which lease term have expired and asset retained by lessees.
 
 1.3.5 The Company is in the process of restructuring and renegotiating
 its outstanding unsecured loans. Consequently provision for interest
 due on the outstanding unsecured loans has been made on simple interest
 basis at rate which is consistent with the trend at which other
 unsecured loans are restructured and renegotiated, and not at the
 original /last contracted rate of interest, further no provision for
 interest is being made on the unpaid interest amount. On account
 payments made by the Company to its lenders are first apportioned
 towards unpaid principal, instead of unpaid interest, without the
 consent of the lenders, this practice would result in to reduction in
 provision for probable interest liability.
 
 1.3.6 The Company in the past has entered into settlement with several
 lenders. The Company has failed to meet its commitment in respect of
 one its lender, Ranbaxy Laboratories Ltd. The agreed liability in
 respect of Ranbaxy Laboratories Ltd., as reflected in the Books of
 Accounts of the Company is Rs. 60 lacs (previous year Rs. 60 lacs). The
 waiver of interest liability in terms of the settlement with Ranbaxy
 Laboratories Ltd amounting to Rs. 21.77 lacs was credited to Work in
 Progress account. In the opinion of the Company the revised liabilities
 as per the settlement with this lender is still valid and subsisting as
 the Company has not received any legal notice for termination of the
 settlement from the concerned Lenders.
 
 1.3.7 In case of disputed /defaulted loans taken by the Company,
 provision for interest due on the outstanding secured loans has been
 made at the last contractual rate of interest. No provision is being
 made for interest on unpaid interest as also for any penal interest and
 other charges.
 
 1.3.8 The Company has obtained legal advise that the overdue bills
 discounted amounts and the construction loans received from customers
 are not considered as Deposits in terms of section 58A of the Companies
 Act, 1956. Accordingly they are classified as other payables under
 current liabilities.
 
 1.3.9 The balances in overdue secured and unsecured loans are subject
 to confirmation. The management has been advised that for tactical
 reasons not to obtain confirmations from its lenders as the same would
 impact the negotiation position of the Company.  The Company has also
 requested the auditors not to directly write to the lenders to obtain
 confirmations. The auditors have relied on the judgment of the
 management in this regard.
 
 1.4 The balances in trade payables, secured and unsecured loans are
 subject to confirmation. During the year under review balances in the
 accounts of the several trade payables and other current liabilities
 have been written off, as in the opinion of the management the same are
 no longer payable. The auditors have relied on the judgment of the
 management in this regard.
 
 1.5 The provision for tax for the year is made considering the
 provision of Minimum Alternative Tax (MAT). While working out the
 provision of tax it is assumed that the claim made by the Company
 during financial year 2006-07 and 2007-08, though rejected at original
 assessment level, will be upheld and decided in favour of the Company,
 resulting in the Company''s eligibility to set off losses returned in
 those years. If the tax dispute of financial year 2006-07 and 2007-08
 are finally not decided in favour of the Company then the provision for
 tax for the year will be higher by Rs. 229 Lacs ( previous year Rs. 56
 lacs) and the resulting profit after tax lower by similar amount.
 
 1 All Fixed Assets are stated at cost of acquisition less accumulated
 depreciation.
 
 2 Depreciation on fixed assets has been provided under Written Down
 Value method at the rates prescribed under Schedule XIV to the
 Companies Act, 1956.
 
 3 Depreciation on additions to fixed assets has been charged from the
 date when they were first put to use.
 
 4 The Company does not have any intangible assets or Capital work in
 progress.
 
 5 The Company has nether given nor taken any assets under financial or
 operating lease.
 
 6 The Company has not acquired any fixed assets through business
 combinations.
 
 7 There has been no revaluation / reduction in any fixed assets during
 the immediately preceding five years.
 
 8 No borrowing cost is being capitalised to Fixed Assets in accordance
 with AS 16.
 
 9 No adjustment on account of fluctuation in foreign currencies have
 been effected to Fixed Assets in accordance with AS 11.
 
 2.1 All the above shares are fully paid up and the Company has no
 further obligations towards them.
 
 2.2 Investments are valued at their respective cost of acquisition.
 
 2.3 Of the above investments, except investment in The Shamrao Vithal
 Co. Op. Bank Ltd., other investment are in companies under same
 management / group companies.
 
 2.4 Aggregate amount of un-quoted investments - Rs. 832.49 lacs (previous
 year Rs. 594.01 lacs).
 
 2.5 Aggregate amount of provision for diminution in value of
 investments Rs. Nil.
 
 3.1 All the above long term loans and advances are unsecured and
 considered good for recovery.
 
 3.2 Long term loans and advances include Rs. Nil due from directors and
 other officers of the Company or entities in which directors and other
 officers of the Company are interested.
 
 3.3 All the above non-current assets are unsecured and considered good
 for recovery.
 
 3.4 Other non-current assets include Rs. Nil due from directors and other
 officers of the Company or entities in which directors and other
 officers of the Company are interested.
 
 4.1 Inventory is valued at lower of market value or cost of
 acquisition. All direct expenses in respect of acquisition and
 clearance of title of such inventory are included in the cost of such
 inventory.
 
 4.2 Construction materials are valued at cost.
 
 4.3 Work in progress are valued at costs, consisting of land
 development rights, construction, development, administration,
 marketing and finance expenses or market value whichever is lower. For
 this purpose items of the same project are compared in totality.
 
 4.4 Finished goods are valued at cost consisting of land development
 rights, construction, development, administration, marketing and
 finance expenses or market value whichever is lower. For this purpose
 items of the same project are compared in totality.
 
 4.5 The Company has undertaken an exercise to evaluate the impairment
 of each inventory. On the basis of such exercise, the management is of
 the opinion that all the inventories which are carried over in the
 Balance Sheet are at their full realizable value. The auditors have
 relied on the judgment of the management as to the impairment of
 inventories.
 
 5.1 All the above trade receivables are unsecured, but considered good
 for recovery.
 
 5.2 Trade receivables include Rs. 830 lacs (previous year Rs. Nil) due
 from directors and other officers of the Company or entities in which
 directors and other officers of the Company are interested.
 
 5.3 The balances in receivables are subject to confirmation. The
 management is of the opinion that all the receivables reflected in the
 financial statements are fully realizable and that there is no
 impairment in them. During the year under review balances in the
 accounts of the several receivables have been written off because in
 the opinion of the management the same are no longer receivable. The
 auditors have relied on the judgment of the management in this regard.
 
 5.4 Amount of provision for doubtful debts Rs. Nil.
 
 6.1 All the above short term loans and advances are unsecured, but
 considered good for recovery.
 
 6.2 The above short term loans and advances given are without
 interest.
 
 6.3 Short term loans and advances include Rs. 4.72 lacs ( previous year
 Rs. 365.76 lacs) due from entity in which directors of the Company are
 interested.
 
 7.1 In respect of all the loans, secured and unsecured, (which are not
 re- negotiated) no provision has been made for compound interest and
 penal interest. The same will be accounted for on final settlement of
 the accounts with the lenders. To that extent Company has Contingent
 Liability which is unascertainable.
 
 7.2 No provision has been made in respect of contractual delays,
 lapses and defaults committed by the Company in respect of various
 contracts in the course of business. These delays, defaults and lapses
 are generally accepted to occur in the real estate development business
 and generally settled amicably by the parties. No provision for any
 probable / additional cost, compensation or penalties are being made by
 the Company, to that extent the Company has a Contingent Liability,
 which is unascertainable.
 
 7.3 The Company has received demand from the Income Tax Department for
 Rs. 75.69 crores and Rs. 59.36 crores in respect of financial year 2006-07
 and 2007-08 respectively. The Company has disputed the above demands
 and the matter is pending at appellate stage with appropriate
 authorities. Since the matter is disputed the Company has not provided
 for these liabilities in its books, to that extent the Company has a
 Contingent Liability. The above figure does not include interest
 payable u/s. 220 of the Indian Income Tax Ac, 1961, which will be
 concluded depending on the outcome of the appeal as well at the point
 of time when the outcome is decided and taxes paid by the Company, to
 that extent the Contingent Liability is unascertainable.
 
 7.4 The Company is in dispute with the Income Tax department on
 several counts, these disputes pertain to different accounting periods
 and are pending before different appellate authorities. The aggregate
 demand raised by the Income Tax department for which disputes are
 pending is Rs. 150.69 crores, against these disputed demand the Company
 has provided liability to the extent of Rs. 6.64 crores. The balance
 contingent laibility of Rs. 144.05 crores is not provided for.
 
 7.5 Attention is also invited on Note numbers 5.2.1 and 5.3.2 to
 arrive the total picture of contingent liabilities.
 
 8 Previous year figures are re-grouped and re-classified wherever
 necessary.