NOTES TO THE FINANCIAL STATEMENTS AS AT 31ST MARCH, 2016

f) The Company has 98% share in Partnership Firm 'INDOGREEN INTERNATIONAL' which is running a Hotel 'The Golden Palms Hotel & Spa'. The said hotel started its operations in June 2013 and was successfully running during the previous year. The Firm is a jointly controlled entity and prepares its own separate financial statements and will be assessed as Firm under the Income Tax Act.

1 On 18.03.2015, the Company formed a wholly owned, non-material, subsidiary company namely 'M/s Golden Palms Facility Management Pvt. Ltd.' to provide the maintenance facility to the Group Housing Project developed by the Company individually and also those projects which are being developed in Joint Venture. As on 31.03.2015, Company's Contractual Liability was to subscribe the 1,00,000 Fully paid up Equity Shares @ Rs. 10/- per share and the said shares were actually subscribed by the Company on 21.04.2015. Subsequently, the company has transferred its 50% shareholding, i.e., 50,000 Equity Shares to M/s IITL Projects Ltd. and consequently M/s Golden Palms Facility Management Pvt. Ltd. became an Associate company.

2. Operating Lease

The Company has given Various office premises on operating lease and during the previous year, The company has received rental income of Rs. 1,38,66,340/- (P.Y. 1,24,78,440/-) from said leased premises.

The future minimum Lease Rent Income under operating lease for each of the following periods are as under

Notes:

a) The Company's share of assets, liabilities, income and expenditure has been included on the basis of audited financial information of its Jointly controlled Entities.

b) Previous year figures are in brackets.

3 In terms of the accounting policy for revenue recognition, estimates of project costs and revenues are reviewed periodically by the management and the impact of any changes in such estimates are recognized in the period in which such changes are determined.

4 In accordance with the provisions of Companies Act, 2013, the Company had revised the useful life of its fixed assets to comply with the life as mentioned under Schedule II of the Companies Act, 2013, during the year ended 31.03.2015 and as per the transition provisions, the Company had adjusted net credit of Rs.2,15,149/- with the opening balances of retained earnings, i.e., surplus in the Statement of Profit and Loss.

5 The company is mainly engaged in Real Estate and Infrastructure Development activities which constitute Single Primary Business Segment as defined under As-17.

6 In the absence of sufficient profits, no provisions have been made for (a) Dividend for the year ended 31.03.2016, on 8% Non-Cumulative, Non-Convertible, Non-Participating, Compulsory Redeemable Preference Shares; (b) Additional Premium @ Rs. 4/- per share, per year, payable on redemption of preference shares till these preference shares are redeemed.

7 Previous year figures have been regrouped, rearranged and/or reclassified wherever necessary to conform to current year's classification.