1.  The Company Overview
 
 Vascon Engineers Limited (Company) was incorporated on 1st January,
 1986. The Company is engaged in the business of Engineering,
 Procurement and Construction services (EPC) and Real Estate Development
 directly or indirectly through its Subsidiaries, Joint Ventures and
 Associates. The shares of the Company are listed on National Stock
 Exchange and Bombay Stock Exchange.
 
 
                                                 Amount in Rupees
 
 Particulars                     March 31, 2012      March 31, 2011
 
 2   Contingent liabilities
 
 a)   Disputed demands for 
      Income Tax                   132,574.282          61,595,900
 
 b)   Disputed demands for 
      Service Tax                   24,153,822          18,677,086
 
 c)   Disputed demands for 
      Value Added Tax                2,780,140               -
 
 d)   Performance and financial 
      guarantees given by the
 
      Banks on behalf of 
      the Company                1,648,316,752       2,442,487,374
 
 e)   Corporate guarantees 
      given for other companies
      /entities                  1,946,300,000         891,300,000
 
 f)   Claims against the Company 
      not acknowledged as debts  3,600,000,000       6,087,783,351
 
 
 i) The assignee of a development rights relating to a property had
 filed an arbitration proceedings making a claim of Rs. 248,77,83,351/-
 plus interest . During the year under review, the parties were
 negotiating Consent Terms which have been finally executed after the
 balance sheet date. The settlement accepts the finality of all the
 actions taken and no amount is payable by the Company to the claimants.
 The said consent terms are in the process of being filed with the
 Arbitral Tribunal for its order. Since the parties to the dispute have
 agreed to the settlement, the Company has been legally advised that,
 pending final order of the Arbitral Tribunal, no claim or contingency
 exists as of now.
 
 ii) In respect of claim against the Company amounting to
 Rs.360,00,00,000/- (Rs 360,00,00,000/-) by a party who was originally
 claiming interest in a property, no provision has been considered
 necessary by the Management in view of the legal opinion that the said
 claim is not tenable on various grounds.
 
 3 Disclosure of particulars of significant leases as required by
 Accounting Standard 19
 
 The Company''s significant leasing arrangements are in respect of
 operating leases for commercial and residential premises.
 
 The Company leases / sub-leases office spaces under non-cancellable
 operating lease agreements that are renewable on a periodic basis at
 the option of both the lessor and lessee.
 
 a) Lease income from operating leases is recognised on a straight-line
 basis over the period of lease.
 
 4 Disclosure of related party transactions as required by Accounting
 Standard 18
 
 Names of related parties
 
 1.  Subsidiaries
 
 - Marvel Housing Private Limited
 
 - Grey Stone Premises Private Limited
 
 - Vascon Dwellings Private Limited
 
 - IT CITI Info Park Private Limited
 
 - Caspia Hotels Private Limited
 
 - Windflower Properties Private Limited
 
 - GMP Technical Solution Private Limited
 
 - Floriana Properties Private Limited
 
 - Vascon Pricol Infrastructure Limited
 
 - Vascon Renaissance EPC Limited Liability Partnership
 
 - Almet Corporation Limited
 
 - Marathwada Realtors Private Limited
 
 2.  Joint Ventures
 
 - Weikfield IT CITI Infopark
 
 - Phoenix Ventures
 
 - Zenith Ventures
 
 - Zircon Ventures
 
 - Marigold Premises Private Limited
 
 6.  Individuals having significant influence over the Company
 
 7.  Establishments where individuals in serial number (4), (5) and (6)
 exercise significant Influence
 
 - Flora Facilities Private Limited (Formerly known as Flora Premises
 Private Limited)
 
 - Vastech Consultants Private Limited
 
 - Vatsalya Enterprises Private Limited
 
 - Bellflower Premises Private Limited
 
 - Cherry Construction Private Limited
 
 - Sunflower Premises Private Limited
 
 - Syringa Engineers Private Limited (Formerly known as Syringa
 Properties Private Limited)
 
 - Vascon Infrastructure Limited
 
 5 Based on the guiding principles enunciated in paragraph 4 of
 Accounting Standard - 17 (AS - 17), ''Segment Reporting'', if a single
 financial report contains both consolidated financial statements and
 the separate financial statements of the parent, disclosure required by
 AS 17 is given in consolidated financial statements.
 
 6 During the course of audit of a project, the technical audit team of
 the Company detected certain irregularities at one of the sites where
 Company''s work is going on since the year 2007. While preparing
 escalation bills, certain cost overruns relating to technical matters
 under investigation were checked and it was found that the same portion
 could not be charged. With some further investigations, the Company
 noticed that there was a significant deviation with actual cost being
 higher than the budgeted cost. It was detected that there was a
 criminal breach of trust by some staff members at different levels
 including a vice president of the Company, together acting in concert
 against the interest of the Company over a period of 5 years. The
 amount involved is estimated at about Rs. 34,82,00,000 (Rs.Nil/-) on
 account of deviation aforesaid. The matter is under investigation. As
 the impact of the same has already been considered in the accounts in
 the relevant years, the management is of the opinion that no further
 provision in this regard is necessary.
 
 7 Particulars of the Joint Ventures undertaken by the Company as
 required in AS 27 Financial Reporting of Interest in Joint Venture,
 in respect of which disclosures have been made are given in the annexed
 statement.
 
 8 Other additional information required by schedule VI of the
 Companies Act, 1956 are not applicable to the Company for the year.
 
 9 Corresponding figures for previous periods presented have been
 regrouped, where necessary, to conform to the current year
 classification.