1) The Company has received demand from the Income Tax Department for
 Rs.7,569 lacs and Rs.5,936 lacs in respect of fnancial 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 fgure 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.
 
 2) The provision for tax for the year is done considering the provision
 of Minimum Alternative Tax (MAT). While working out the provision of
 tax it is assumed that the claimed made by the Company during fnancial
 year 2006-07 and 2007-08 will be upheld and decided in favour of the
 Company, resulting in to the Company being eligible for claim of losses
 in those years which can be used to set off the profits of the year.  If
 the tax dispute of fnancial year 2006-07 and 2007-08 are not decided in
 favour of the Company then the provision for tax for the year will be
 higher by Rs. 56 lacs and the resulting profit after tax lower by
 similar amount.
 
 3) No provision has been made for interest on delayed payments in terms
 of agreements for purchase of land including Mr. Suresh Thanawala as
 the claims are disputed and not acknowledged by the Company .The same
 will be provided as and when the claims are settled with the parties
 concerned. To that extent the Company has Contingent Liability the
 amount of which is unascertainable.
 
 4) 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.
 
 5) The balances in creditors, debtors, secured and unsecured loans are
 subject to confrmation. The management is of the opinion that all the
 debtors, loans and advances refected in the fnancial statements are
 fully realizable and that there is no impairment in them. During the
 year under review balances in the accounts of the several debtors,
 creditors and loan and advances have been written off, as in the
 opinion of the management the same are no longer receivable/ payable.
 The auditors have relied on the judgment of the management in this
 regard.
 
 6) 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.
 
 7) 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 classifed as Current Liabilities.
 
 8) CONTINGENT LIABILITIES :
 
 Please refer to Note numbered 2 (e), 2(f), 3, 4, 5 and 6 above.
 
 9) MANAGERIAL REMUNERATION :
 
 Remuneration to directors in accordance with the conditions specifed in
 Schedule XIII of the Companies Act, 1956,– Rs.  Nil ( previous year Rs.
 Nil ).
 
 10) Expenditure in foreign currency on account of travelling Rs.Nil /-
 (previous year Rs.3.35 lacs).
 
 11) Information pursuant to part II of Schedule VI to the Companies Act
 
 12) Installments becoming due for sale of residential and commercial
 units, the construction work of which is in progress and not
 substantially completed are accounted as and when received under the
 head “Current Liabilities”.
 
 16) Related Parties disclosure : 1.  Relationships:
 
 (a) Key Management Personnel :
 
 Mr. Darshan L. Gandhi Ms. Naina M. Shah
 
 (b) Relatives of Key Management Personnel and their Enterprises
 
 Mrs. Rajni L. Gandhi
 
 Mrs. Shraddha D. Gandhi
 
 (c) Associate Companies :
 
 Bahar Housing Developers
 
 L. L. Builders
 
 LGNC Ltd.
 
 Lok Builders
 
 Lok Realty Corporation Pvt. Ltd.
 
 Remaking of Mumbai Housing Infrastructure & Finance Ltd.
 
 Remaking of Mumbai Federation
 
 Remaking of Mumbai Development Ltd.
 
 Nirman Engineers
 
 13) Items required to be reported under Schedule VI being nil or not
 applicable are not reported herein.
 
 14) Previous year’s fgures have been regrouped and restated wherever
 necessary to confrm to this year’s classification.  Figures in brackets
 relates to previous year.