1.  As stated in note A (7) (ii) for recognizing profit on projects,
 stage of completion is determined as a proportion that project costs
 incurred for the work performed bear to the estimated total costs.
 Further, as stated in that note expected loss on projects is recognised
 when it its probable that the total project costs will exceed the total
 project revenue. For this purpose total project costs are ascertained
 on the basis of project costs incurred and costs to completion of
 projects on progress, which is arrived at by the Management, based on
 current technical data, forecasts and estimate of net expenditure to be
 incurred in future including for contingencies etc., which being
 technical matters have been relied on by auditors. Further, in respect
 of certain properties where sale agreement has been entered with
 parties even though money has not been received as per stipulation in
 the contract, the Company has recognised revenue and debtors as
 management is confident that it shall be able to realize the sale
 proceeds.
 
 2.  As stated in note A(7)(iii) the method used to recognize the
 contract revenue is percentage of completion method measured by survey
 of work performed. Further, as stated in the note expected loss on
 contracts is recognised when it is problem that the total contract cost
 will exceed the total contract revenue. For this purpose total contract
 cost is ascertained on the basis of contract cost incurred and cost to
 completion of contract on progress ,which is arrived at by the
 management, based on current technical data, forecasts and estimate of
 net expenditure to be incurred in future including for contingencies
 etc,which being technical matters have been relied on by auditors.
 
 An amount of Rs. 2327.53 lacs (31.03.2010 Rs.1689.94 lacs) is
 recognized as contract revenue by the company during the current
 financial year. The cost incurred in respect of the above is Rs.1439.97
 lacs (31.03.2010 Rs.953.26 lacs) .The amount of advances received
 against these contracts is Rs . Nil.(31.03.2010 Rs. Nil).
 
 3.  Sundry Creditors - Dues to Micro and small enterprises
 
 Sundry Creditors (Schedule 11, Current Liabilities and Provisions)
 include Rs. Nil (31.03.2010 Rs. Nil) due to micro enterprises and small
 enterprises as defined under the Micro, Small and Medium Enterprises
 Development Act, 2006 (MSMED Act, 2006).
 
 The company has not received any memorandum (as required to be filed by
 the suppliers with the notified authority under the MSMED Act, 2006)
 claiming their status as micro or small or medium enterprises.
 
 4.  (a) As the Company is not a manufacturing/trading Company,
 additional information as required under Part II of Schedule VI to
 Companies Act, 1956 relating to capacities, production, sales,
 consumption of materials etc., is not applicable to it.
 
 (b) The Company has applied for exemption from giving the quantity wise
 details of turnover in respect of supply of Accommodation, Food &
 Beverage and Liquor & Wines, for which approval is awaited.
 
 5.  Contingent Liabilities (not provided for)
 
                                                      (Rs. in lacs)
 
                                                  2010-11       2009-10
 
 (a) Guarantees given to Banks on behalf of
 Prajay Properties Pvt ltd                       12130.00           –
 
 6.  Estimated amount of contracts remaining to be executed on capital
 account and not provided for (net of advance) Rs. 2632.27 lacs
 (31.03.2010: Rs.2436.14 lacs).
 
 7.  Related Party Disclosures:
 
 Information relating to Related Party Transactions as per Accounting
 Standard 18 notified by the Companies (Accounting Standards) Rules,
 2006.
 
 A.  List of Related Parties
 
 Party Relationship
 
 (a) Prajay Holdings Private Limited Subsidiary
 
 Prajay Developers Private Limited Step down - Subsidiary
 
 Prajay Realty Private Limited Subsidiary
 
 Prajay Retail Properties Private Ltd Subsidiary
 
 Prajay Binjusaria Estates Associate
 
 Prajay Properties Pvt Ltd Associate
 
 (b) Key Management Personnel Designation Relatives (Relation)*
 
 Mr. Chandra Mohan Reddy Managing Director Mrs. Hymavathi Reddy (Wife)
 
 Mr. Vijay Sen Reddy Executive Director Mrs. Sharmila Reddy (Wife)
 
 Mr. Ravinder Reddy Director Operations Mr. Hanumanth Reddy (Father)
 
 Mr. K. Ravi Kumar Whole time Director –
 
 Mr. Sumit Sen Whole time Director Mrs. Rina Sen (Wife)
 
 *Relatives of key management personnel with whom there were
 transactions during the year
 
 (c) Other entities under the control of key management personnel and
 their relatives
 
 Prajay Financial Services Limited
 
 Prajay Estates Private Limited
 
 Prajay Hotels Limited
 
 Prajay Arnav Shelter Private Limited
 
 Prajay Velocity Developers Private Limited
 
 VijMohan Constructions Private Limited
 
 Prajay Resorts and Amusement Park Limited
 
 Money Tree Entertainment Limited
 
 Prajay Resorts and Hotels Limited
 
 Prajay Township Private Limited
 
 Prajay Techpark Private Limited
 
 Prajay Chit Funds Private Limited
 
 Prajay ARRF Estates Private Limited
 
 Money Tree Investments & Holdings Pvt. Ltd.
 
 Money Tree Life Style Destinations pvt. Ltd
 
 Prajay Constructions Limited
 
 Secunderabad Golf and Leisure Resorts Private Ltd.
 
 Prajay Land Capital Private Limited
 
 Money Tree Media Ventures Private Limited
 
 8.  Disclosure as required by Accounting Standard 19 - Leases
 notified by the Companies (Accounting Standards) Rules, 2006.
 
 (a) Operating Lease:
 
 i.  Where the Company is a lessee:
 
 The Company''s significant leasing arrangements are in respect of
 operating leases for premises (residences, office, etc.). The leasing
 arrangements, which are not non-cancellable, range generally between 11
 months to 5 years and are usually renewable by mutual consent on agreed
 terms.
 
 The aggregate lease rents payable are recognized in the Profit and Loss
 Account for the year and included as Rent (disclosed under
 Establishment and Other Expenses in Schedule - 16)
 
 (b) Hire Purchase:
 
 (i) The Company has taken plant and machinery, motor vehicles under
 hire purchase arrangements for which the ownership will be transferred
 to the Company at the end of the hire purchase term.
 
 9.  (a) Sundry Debtors - Schedule 8, unsecured, considered good,
 includes Rs. 26421.37 lacs, outstanding for more than six months. As a
 result of economic slowdown and recession in realty sector the
 realisations from customers are slow.
 
 (b) Loans and Advances - Schedule 10 include advances given to
 Landlords/developers towards certain projects amounting to Rs. 8514.32
 lacs and to suppliers, etc. amounting to Rs. 1671.20 lacs outstanding
 from earlier years. Due to long term involvement in such projects, no
 provision has been considered necessary.
 
 10.  Details as required under Schedule VI - Part I of the Companies
 Act, 1956 relating to investment in partnership firm.
 
 (a) Name of the Partnership Firm - Prajay Binjusaria Estates
 
 (b) Total Capital of the said Firm is Rs.2685.50 lacs
 
 (c) As at March 31, 2011 the partnership firm has not commenced any
 activities
 
 (d) Share of each partner in the Profit or Loss
 
 11.  The company has entered into Rupee Facility Agreement with Prajay
 Properties Private Limited (PPPL) on 22nd August 2008 and taken a Loan
 of Rs.3200 Lacs in terms of a Facility Agreement dated 17.06.2008
 between the PPPL and Lehman Brothers Capital Private Limited. In terms
 of the revised Rupee Facility Agreement dated 6th October 2009 with
 PPPL on account of settlement reached by PPPL with the lender Lehman
 brothers capital Private limited, no Interest is payable on the loan
 taken from PPPL. However during the year additional security cover has
 been provided for the loan taken thereby changing the category of the
 loan to a secured loan and hence depicted accordingly.
 
 12.  During the year 97,59,985 Share Warrants were forfeited as the
 warrant holders did not opt to convert them into equity shares .
 Consequently the amount of Rs.475.80 Lacs received against these Share
 warrants have been transferred to Capital Reserve.
 
 13.  Previous year figures have been regrouped/reclassified wherever
 necessary to conform to current year classification.