Unitech

1.  CONTINGENT LIABILITIES NOT PROVIDED FOR
 
 I.  In respect of Bank Guarantees Rs. 281.99 Crores ( Rs. 259.96 Crores
 It includes, guarantees of Rs. 44.41 Crores (Rs. 100.39 Crores) in
 respect of following Subsidiary Companies:
 
 a) Unitech Residential Resorts Ltd.
 
 b) Unitech Business Parks Ltd.
 
 c) Unitech Developers & Hotels Pvt. Ltd.
 
 d) Unitech Realty Pvt. Ltd.
 
 e) Unitech Real Estate Builders Ltd.
 
 f) Bengal Unitech Universal Infrastructure Pvt. Ltd.
 
 g) Unitech Reliable Projects Pvt. Ltd.
 
 II.  The company has given Corporate Guarantees of Rs. 2325.69 Crores
 (Rs.1640.51 Crores) for raising Loans from Financial Institutions and
 Banks by its subsidiaries and an erstwhile associate.
 
 III.  In respect of Liquidated damages and other claims by clients /
 customers not acknowledged as debts Rs. 5.55 Crores (Rs. 3.44 Crores).
 
 2.  LIABILITIES AND ASSETS
 
 Balances grouped under Sundry Debtors, Sundry Creditors and Advances
 Recoverable in cash or in kind are subject to confirmation from
 respective parties.
 
 3.  SECURED LOANS
 
 Nature of Security
 
 I.  Debentures
 
 500, 10.50% Secured Redeemable Non-convertible Debentures of
 Rs.10,00,000/-each are redeemable, at par on 16th January 2009.
 
 500, 10.50% Secured Redeemable Non-convertible Debentures of
 Rs.10,00,000/-each are redeemable, at par on 17th February 2009
 
 500, 10.50% Secured Redeemable Non-convertible Debentures of
 Rs.10,00,000/-each are redeemable, at par on 17th March 2009
 
 250, 10.50% Secured Redeemable Non-convertible Debentures of
 Rs.10,00,000/-each are redeemable, at par on 2V March 2009.
 
 250, 10.50% Secured Redeemable Non-convertible Debentures of
 Rs.10,00,000/-each are redeemable, at par on 16th April 2009.
 
 500, 10.50% Secured Redeemable Non-convertible Debentures of
 Rs.10,00,000/-each are redeemable, at par on 17th April 2009
 
 250, 10.50% Secured Redeemable Non-convertible Debentures of
 Rs.10,00,000/-each are redeemable, at par on 20th April 2009
 
 250, 10.50% Secured Redeemable Non-convertible Debentures of
 Rs.10,00,000/-each are redeemable, at par on 16th May 2009.
 
 250, 10.50% Secured Redeemable Non-convertible Debentures of
 Rs.10,00,000/-each are redeemable, at par on 19th May 2009
 
 250, 10.50% Secured Redeemable Non-convertible Debentures of
 Rs.10,00,000/-each are redeemable, at par on 16th June 2009.
 
 250, 10.50% Secured Redeemable Non-convertible Debentures of
 Rs.10,00,000/-each are redeemable, at par on 19th June 2009
 
 250, 10.50% Secured Redeemable Non-convertible Debentures of
 Rs.10,00,000/-each are redeemable, at par on 15th July 2009.
 
 250, 11.50% Secured Redeemable Non-convertible Debentures of
 Rs.10,00,000/-each are redeemable, at par on 30th January 2009.
 
 250, 12.25% Secured Redeemable Non-convertible Debentures of
 Rs.10,00,000/-each are redeemable, at par on 26th June 2009.
 
 750, 12.25% Secured Redeemable Non-convertible Debentures of
 Rs.10,00,000/-each are redeemable, at par on 24th December 2009.
 
 The aforesaid Debentures are secured by equitable mortgage on certain
 lands of the company, its wholly-owned subsidiaries and personal
 guarantee of some of the Directors including Managing Director.
 
 II.  Loan from Finance Companies Rs. 7,841,508/-( Rs. 19,879,034/-),
 Advances against Construction Contracts Rs. 78,237,955/-
 (Rs.297,675,545/-) are secured by Hypothecation/Mortgage of Vehicles,
 machineries, material at sites and bank guarantees.
 
 III.  Term Loan of Rs. 2,307,000,000/- (Rs.700,000,000/-) from LIC
 Housing Finance Ltd. and Rs. 910,000,000/-(Rs.1,000,000,000/-) from
 Housing Development Finance Corporation Ltd are secured by equitable
 mortgage of certain lands of the Company and its wholly-owned
 subsidiaries.
 
 IV.  Term Loan of Rs. 352,941,180/-(Rs.2,650,000,000) from DSP Merrill
 Lynch Ltd. is secured by equitable mortgage of certain lands of the
 company and its wholly-owned subsidiaries.
 
 V.  Term Loan of Rs. 528,550,590/- (Rs. Nil) from KUL Trust, Rs.
 1,067,480,829/- (Rs. Nil) from KUT Trust and Rs. 534,928,913/- (Rs.
 Nil) from KBH Trust are secured by equitable mortgage of certain lands
 of the company and its wholly-owned subsidiaries.
 
 VI.  Term Loan of Rs. 3,000,000,000/- (Rs.3,000,000,000) from IDFC Ltd.
 is secured by equitable mortgage of certain lands of the company and
 its wholly-owned subsidiaries and pledge of Shares of the Company held
 by Prakausali Investment India Pvt. Ltd (Promoters Company) and Rs.
 2,000,000,000/- (Rs. Nil) from Life Insurance Corporation of India
 secured by equitable mortgage of certain lands of the Company and its
 wholly-owned subsidiaries and Loan of Rs. 51,32,893/- (Rs.20,474,308/-)
 from Financial Institution (SIDBI) is secured against discounting of
 Bills of contractors / vendors.
 
 VII.  Loans from Banks are secured by hypothecation of all present and
 future book debts and equitable mortgage of certain lands of the
 company and its subsidiaries.
 
 VIM. The aforesaid loans are further secured by personal guarantees of
 Executive Chairman and the Managing Directors.
 
 3.  ADVANCES TO SUBSIDIARY COMPANIES FOR PURCHASE OF LAND
 
 In pursuance of real estate activities undertaken, the company has
 given advances to its wholly owned subsidiaries for purchase of land.
 The said lands are being developed by the company as per Memorandum of
 Understanding executed between the parties.
 
 4.  ACCOUNTING OF REAL ESTATE PROJECTS UNDERTAKEN UP TO 31st March, 2004
 
 The actual receipts and installments due of Rs.
 711,414,600/-(Rs.2,102,556,025/-) for the year from booking of
 plots/constructed properties in real estate on projects has been
 credited to revenue as sales. Against this after ascertaining profits
 on estimate basis as per accounting policy No. 4(a)(i) the balance of
 80% is adjusted in revenue accounts. The final adjustment of
 Profit/Loss is being made on completion of respective project(s).
 
 5.  ACCOUNTING OF INTEREST ON DELAYED PAYMENTS
 
 In line with accounting policy no 4(a)(iii) the company is recognising
 Income of Interest on delayed payment and maintenance charges on
 realisation basis, as there is no virtual certainty of their
 realisation on accrual basis.
 
 6.  ACCOUNTING OF PROJECTS WITH CO-DEVELOPER
 
 The Company is developing certain projects jointly with Pioneer Urban
 Infrastructure Limited and its other group companies. All the
 development expenses and sale proceeds booked during the year are
 transferred to the co-developer at the year end in proportion to share
 of actual land pooled by each developer.
 
 7.  EARNINGS IN FOREIGN CURRENCY
 
 Receipts in respect of overseas projects Rs. Nil (Rs. 21,589,500/-).
 
 Note: The figures in serial 26 and 27 do not include the transactions/
 expenses incurred at foreign sites /branch.
 
 8.  PREVIOUS YEAR FIGURES
 
 Figures in brackets are in respect of the previous year, which have
 been regrouped and rearranged wherever considered necessary.
 
 9.  SCHEDULES TO ACCOUNTS
 
 Schedule 1 to 16 from an integral part of the Balance Sheet and Profit
 and Loss Account and are duly Authenticated.