Orbit Corporation

1.  Contingent Liabilities: Corporate Guarantee Rs. Nil (previous year
 Rs. Nil)
 
 2.  Estimated amounts of contracts remaining to be executed on capital
 account and not provided for (net of advances) Rs. Nil; (Previous year
 Rs. Nil).
 
 3. Non Convertible Debentures (NCDs) issued by the company are held by
 Life Insurance Corporation of India (LIC) for an outstanding amount of
 Rs. 1900 millions. The redemption of the said NCDs were rolled over by
 LIC vide its sanction letter dated March, 18, 2009. The revised
 Redemption schedule is as under. The said NCDs have been secured by
 registered mortgage created in favour of LIC over immovable property at
 Gujarat and also mortgage of Development Rights of its property
 situated at Santacruz, Mumbai. The said NCDs have also secured by
 personal guarantee of Mr. Ravikiran Aggarwal and Mr. Pujit Aggarwal.
 
 Debenture Redemption Reserve (DRR) has been created in accordance with
 circular No.9/2002 dated 18th April,2002 issued by Department of
 Company Affairs, Ministry of Law Justice and Company Affairs Government
 of India and Section 117(C) of the Companies Act,1956. Amount set aside
 for DRR represents proportionate amount of outstanding NCDs equally
 spread over terms of Debentures.
 
 4.  Other Loan is secured against immovable property of the Company.
 
 5.  Sundry creditors includes Rs. Nil (Previous year Rs. Nil) due to
 vendors covered by the Micro, Small and Medium Enterprises Development
 Act, 2006.
 
 6.  Sundry debtors, sundry creditors and loans and advances are
 subject to confrmation and reconciliation, if any.
 
 7.  Segment Reporting
 
 The Companys business activities fall within a single segment, viz.
 real estate and redevelopment and predominantly operates in domestic
 market. Accordingly, disclosure requirements under Accounting Standard
 (AS) 17 Segment Reporting, is not applicable.
 
 8.  During the current year company has redeemed all units of Lotus
 India liquid Fund Plus, for Rs. 103.03 millions and earned dividend
 income of Rs. 2.06 millions on same. The units were classifed as short
 term investments.
 
 The company has received a dividend income of Rs. 0.10 millions,from
 Pen Co-op. Bank Ltd.  The investment in shares are classifed as Long
 Term Investments.
 
 9.  Earnings Per Share:
 
 The amount considered in ascertaining the Companys earnings per share
 constitutes the net loss after tax. The number of shares used in
 computing basic earnings per share is the weighted average number of
 shares outstanding during the year. The number of shares used in
 computing diluted earnings per share comprises the weighted average
 number of shares considered for deriving basic earnings per share and
 also the weighted average number of shares which could have been issued
 on conversion of all dilutive potential shares.
 
 Diluted EPS is calculated on the number of equity shares outstanding as
 on the balance sheet date and also the dilutive component of
 convertible warrants. Dilutive nature have been calculated as
 
 10. The Company considering interlia, the legislative intent of the
 provisions of the Section 80-IB (10) of the Income Tax Act, 1961,
 particularly with respect to the deduction of the profits derived from
 redevelopment of buildings/properties, is of the considered opinion
 that it shall be entitled to a 100% deduction of its profits derived
 from such property redevelopment activities undertaken in accordance
 with Development Control Regulations (DCR) in force in the state of
 Maharashtra, notwithstanding approvals etc. in terms of provisions of
 the said Section 80-IB (10). Accordingly the taxable profit computed in
 accordance with the provisions of Income Tax Act,1961 have been reduced
 to the extent of claim U/s. 80-IB (10).
 
 The company has applied for admission at settlement commission for
 various issues interlia 80IB claim made by the Company, to which Income
 Tax department had contested upon.
 
 The company has been granted interim relief in form of stay order
 against abatement of all cases.  In view of the matter being subject of
 scrutiny by Settlement Commission and further verifcation of facts, the
 same is subjudice for deduction u/s 80 -IB(10).
 
 In addition to the amount of Rs. 69.71 millions provided during the
 year for tax, Rs.34.1 millions may be an additional amount for the same
 in case the deduction u/s 80-IB is not available for the year.
 
 In addition to the amount of Rs 290.27 millions provided cumulative for
 previous years for tax, Rs 589.4 millions may be an additional amount
 for the same in case the deduction u/s 80 IB is not available for such
 previous years.
 
 11. The total value of sales for project mentioned in point 17 for
 which revenue recognition is applicable is Rs. 12,805.57 millions. Out
 of which Rs. 6,198.97 millions was recognized in previous year and
 Rs.2,823.70 millions is recognized revenue for the year as per
 percentage completion method. The remaining amount i.e. outstanding
 book size is Rs.3,782.90 millions.
 
 During the year area sold of Orbit WTC has been reduced from 333,000
 SFT. to 316,000 SFT. Consequent to this reduction in saleable area
 during the year actual sales amount and revenue recognized have also
 undergone downward revision by Rs. 412.05 millions and Rs. 248.97
 millions respectively.
 
 12.  Current yearfigures are after amalgamation of its subsidiary
 w.e.f. 1st April, 2008. Previous year fgure are not comparable to that
 extent.
 
 13.  Amalgamation :
 
 During the year, the company has amalgamated its wholly owned
 subsidiary viz. Orbit Shelter Pvt. Ltd.  vide Scheme of Amalgamation
 w.e.f. 1st April, 2008.
 
 The said scheme of Amalgamation have been approved by Honorable High
 Court of Mumbai vide its order passed on 26th June,2009.
 
 All the assets & liabilities of the said subsidiary have been vested
 with the company at book values & the same have been accounted for in
 accordance of AS-14 Accounting or Amalgamation issued by the
 Institute of Chartered Accountant of India.
 
 14.  Figures for the previous year have been regrouped wherever
 necessary.