1) Equity Share Capital and Warrants:
 
 a) The allotment of 45,351 (Previous Year 45,351) Equity shares of the
 Company has been kept in abeyance in accordance with Section 206A of
 the Companies Act, 1956, till such time as the title of the bonafide
 owner of the shares is certified by the concerned Stock Exchange or the
 Special Court (Trial of Offences relating to Transactions in
 Securities).
 
 b) Employee Stock Option Scheme
 
 The Company had granted 678,359 Equity shares on 25th April, 2008 to
 the eligible employees under the Employee Stock Option Scheme 2006
 (ESOS 2006) of the company.
 
 2) Preference Share Capital
 
 The 10.50 % Non Cumulative Redeemable Preference shares of Rs. 100 each
 were redeemed on 22nd March, 2011. The Board of Directors at its
 meeting held on March 18, 2011 declared an Interim Dividend for the
 period April 01, 2010 to March 22, 2011 i.e. up to the date of
 redemption. The Interim dividend was paid on March 22, 2011 along with
 redemption amount.
 
 3) Secured Loans
 
 Secured borrowings are secured by a pari-passu charge on immovable
 properties of the company and are also secured by pari-passu charge on
 specified movable and current assets of the company, both present and
 future.
 
 6) Investments
 
 a) The company has made provision of Rs. 112 lakhs during the current
 year for diminution in the value of investment in its subsidiary
 company, Mahindra World City (Maharashtra) Limited. In the opinion of
 the Management, no loss is expected to arise in respect of other long
 term investments for which an additional provision is required to be
 made in the accounts.
 
 7) Inventories, Current Assets, Loans and Advances:
 
 a) Construction Work-in-Progress represents materials at site and
 unbilled costs on the projects. Based on projections and estimates by
 the Company of the expected revenues and costs to completion, provision
 for losses to completion and/ or write off of costs carried to
 inventory are made on projects where the expected revenues are lower
 than the estimated costs to completion. In the opinion of the
 management, the net realisable value of the construction work in
 progress will not be lower than the costs so included therein.
 
 b) Project advances and interest accrued thereon represent the amounts
 recoverable from the proceeds of projects undertaken/financed by the
 Company as per the contracted terms. The advances as well as the
 interest thereon are considered good and fully recoverable based on
 inter-alia the estimates and projections by the Company of the project
 costs and revenues.
 
 c) Construction Work-in-Progress, Project Advances and interest accrued
 thereon referred to in 7(a) and 7(b) above include Rs. 7,146.11 lakh
 (previous year Rs. 6,873.11 lakh) on account of a project, where
 commencement of construction has been delayed on account of a dispute
 between the land-owner and the Company. The dispute has been referred
 to arbitration.
 
 8) Sundry Creditors and Provisions:
 
 a) Based on the information available with the Company there are no
 dues outstanding in respect of Micro, Small and Medium Enterprises as
 of Balance Sheet date.
 
 b) There are no amounts due and outstanding to be credited to Investor
 Education and Protection Fund.
 
 c) The Company has, in case of certain projects, provided for Rs.
 1,023.00 lakh (previous year Rs. 1,023.00 lakh) as provision for losses
 to project completion. The amount has been determined using best
 estimates with regard to percentage of completion, foreseeable costs to
 completion and revenues from the project activity. However, considering
 future business scenario, inflation in construction costs and market
 movement causing changes in realisations, which cannot be presently
 quantified, the final outcome may differ from that presently estimated.
 The probability and the timing of the outflow with regard to this
 matter depends on the completion of the project and conclusion of the
 arbitration proceedings.
 
 9) In respect of real estate projects under long term contracts,
 determination of profits/ losses and realisability of the construction
 work-in-progress & project advances necessarily involves making
 estimates by the Company, some of which are of a technical nature,
 concerning, where relevant, the percentage of completion, costs to
 completion and the projections of revenues expected from projects /
 activity and the foreseeable losses to completion. Profit from these
 contracts and valuation of construction work in progress is based on
 such estimates.
 
 10) Leases:
 
 The Companys significant leasing arrangements are in respect of
 operating leases for Commercial & Residential premises.
 
 11) Contingent Liabilities
 
                    Matter                 Current Year   Previous Year
                                            Rs. in lakh    Rs. in lakh
 
 a) Claims against the Company not 
    acknowledged as debts represent :
 
    i) A suit filed by a party in the 
    Delhi High Court, and disputed by the
    Company, for recovery of brokerage in 
    respect of a transaction relating to
    operating of commercial complexes. In 
    the opinion of the management the above 
    claim is not sustainable                      42.67           42.67
 
    ii) Claims awarded by the Arbitrator to 
    a civil contractor in respect of a 
    project at Mumbai and the Companys 
    appeal against the award has been admitted
    by the Mumbai High Court                      88.44           88.44
 
    iii) Demand from local authorities for 
    transfer fees on transfer of property, 
    disputed by the Company                      123.99          123.99
 
    iv) Demand from a local authority for 
    energy dues disputed by the company        2,164.04        2,164.04
 
 b) Income tax matters under appeal
 
    In respect of certain business incomes 
    re-classified by the Income tax Department 
    as income from house property and other 
    disallowances, the Company has partially
    succeeded in appeal and is pursuing the 
    matter further with the higher appellate   1,218.65        1,366.50
    authorities
 
    The liability net of Deferred Tax Asset/
    Deferred Tax Liability would be Rs. 743.34 
    lakh (previous year Rs. 891.19 lakh)
 
 12) Operating Expense includes a provision of Rs. Nil (Previous Year
 Rs. 442.00 lakh) made in respect of an Arbitration award, against which
 the company has filed an appeal.
 
 * The remuneration to the Managing Director for the previous year is
 for the period 1st April, 2009 to 23rd June, 2009 for Mr.Pawan Malhotra
 and for the period 23rd June, 2009 to 31st March, 2010 for Ms. Anita
 Arjundas.
 
 15) Employee Benefits 
 
 a) Gratuity
 
 (1) Description of the Plan:
 
 The Company has covered its gratuity liability by a Group Gratuity
 Policy named ‘Employee Group Gratuity Assurance Scheme issued by LIC
 of India. Under the plan, employee at retirement is eligible for
 benefit, which will be equal to 15 days salary for each completed year
 of service. Thus, it is a defined benefit plan and the aforesaid
 insurance policy is the plan asset.
 
 b) Leave Encashment:
 
 (1) The leave encashment benefit scheme is a defined benefit plan and
 is wholly unfunded. Hence, there are no plan assets attributable to the
 obligation.
 
 Notes:
 
 1.  The segment result for Projects, Project Management and Development
 activity is arrived at after considering an interest expense of Rs.
 187.36 Lakh (Previous year Rs. 252.37 Lakh), as it formed part of the
 cost of projects according to the method of accounting followed by the
 Company.
 
 2.  The Company has discontinued the Operations of its segment-
 Business Centre during the quarter ended 31st December, 2010.
 
 20) Related Party Transactions
 
 List of related parties
 
 Enterprises Controlling the Company
 
 Mahindra & Mahindra Limited        Holding Company
 
 Enterprises under the control 
 of the Company
 
 Mahindra Infrastructure 
 Developers Limited                 Mahindra Integrated Township
                                    Limited
 
 Mahindra World City Developers     Mahindra Residential Developers
 Limited                            Limited
 
 Mahindra World City (Jaipur)       Industrial Township (Maharashtra)
 Limited                            Limited
 
 Knowledge Township Limited         Mahindra Bebanco Developers Limited
 
 Mahindra World City (Maharashtra)  Raigad Industrial & Business
 Limited                            Park Limited
 
 Watsonia Developers Limited        Anthurium Developers Limited
 (w.e.f. 2nd June, 2010)            (w.e.f. 2nd June, 2010)
 
 Fellow Subsidiaries
 
 Bristlecone India Limited.  
 
 Mahindra Holidays & Resorts India Limited.
 
 Mahindra Two Wheelers Private Limited 
 
 Mahindra Consulting Engineers Limited.  
 
 Mahindra Rural Housing Finance Limited 
 
 Mahindra & Mahindra Financial Services Limited.  
 
 Mahindra Engineering & Chemical Product Limited
 
 
 Key Management Personnel
 
 Ms. Anita Arjundas- Managing Director & Chief Executive Officer
 
 Enterprises over which key management personnel are able to exercise
 significant influence: Nil
 
 
 21) Information in respect of Jointly Controlled Operations
 
 i) Development of the following residential projects:
 
    G.E. Gardens, Mumbai 
 
 ii) Project for providing potable drinking water and sewerage
 facilities at Tirupur, Tamil Nadu.
 
 23) Additional information pursuant to the provisions of Part IV of
 Schedule VI to the Companies Act 1956 is annexed to the Notes to
 Accounts.
 
 24) The figures for the previous year have been regrouped wherever
 necessary to conform to current years classification.