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Annual Report 2007-08

15 UGF, Indra Prakash, 21 Barakhamba Road, New Delhi 110 001Tel: +91 11 43577100, 43577390 & 43577380, Fax: +91 11 43577420

Email: [email protected]

Website: www.ansals.com

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PRODUCED BY [email protected]

Forward-looking statementIn this Annual Report we have disclosed forward-looking information to enable investors to know our product

portfolio, business logic and direction and comprehend our prospects. This report and other statements — written

and oral — that we periodically make are based on our assumptions. We have tried wherever possible to identify

such statements by using words such as ‘anticipate’, ‘believe’, ‘estimate’, ‘expect’, ‘intend’, ‘plan’, ‘project’ and

words of similar substance in connection with any discussion of future performance.

We cannot guarantee that these forward looking statements will be realized, although we believe that we have

been prudent in our assumptions. The achievement of results is subject to risks, uncertainties and even inaccurate

assumptions. If known or unknown risks or uncertainities materialize, or if underlying assumptions prove inaccurate,

actual results can vary materially from those anticipated, estimated or projected. Readers may bear this in mind.

We undertake no obligation to publicly update any forward-looking statements, whether as a result of new

information, future events or otherwise.

Contents

Coporate Information 1

Notice 2

Directors' Report 6

Report on Corporate Governance 14

Auditors' Report 29

Balance Sheet 32

Profit & Loss Account 33

Schedules 34

Balance Sheet Abstract and Business Profile 61

Cash Flow Statement 62

Statement relating to Subsidiary Companies 64

Consolidated Accounts 66

Attendance Slip/Proxy Form 95

Email : [email protected], Email ID Investor Relations: [email protected], Web Site : www.ansals.com

Board of Directors Shri Deepak Ansal Chairman & Managing Director

Shri Sham Lal Chopra Director

Shri S.L. Kapur Director

Shri Ashok Khanna Director

Shri Pradeep Anand Director

Shri Kushagr Ansal Wholetime Director

Executive Director Shri K.K. Singhal

V.P. & Company Secretary Shri Mohinder Bajaj

Statutory Auditors M/s Khanna & Annadhanam, Chartered Accountants, New Delhi.

Bankers Canara Bank

Axis Bank Ltd.

UCO Bank

Punjab National Bank

Registered Office 15 UGF, Indra Prakash, 21 Barakhamba Road, New Delhi – 110 001

Branch Offices Priyadarshini Apartments, 28 Sarojini Naidu Marg, Civil Lines, Allahabad – 211 001

G-8 Block – 48, Punit Vrindavan, Sanjay Place, Agra – 282 002

Plot No. 46, Basant Vihar, Scheme – 03, Alwar – 301 001 (Rajasthan)

6 First Floor, Gyan Complex, M.P. Nagar, Zone - II, Bhopal – 462 013

3rd Floor, No. 4, Shri Shirdi Kripa Complex, Nagappa Street, Opp Karnataka Bank, Sheshadripuram, Bangalore – 560 020

SCO – 817, First Floor, NAC, Manimajra, Chandigarh – 160 101

Ansals Chiranjiv Vihar, PO Kavi Nagar, Nr. Shastri Nagar, Ghaziabad (U.P.)– 201 001

Ansals Anand Dham, Rishikesh Road, Moti Chur, Via Raiwala, Haridwar – 249 205

11/A, Scheme No. 54, Opp. Satya Sai School, Above IDBI Bank, A B Road, Indore – 452 010

A2 /201, South Block, Bahu Plaza, Gandhi Nagar, Jammu – 180 004

Shop No. 6, Next to Kamla Hospital, Opp. MLB Medical College, Kanpur Road, Jhansi (UP)

122/235, Sarojini Nagar, Kanpur

GF & LGF, SCO –11, Sector – 8, Urban Estate, Karnal (Haryana)

A-3/101, Vishwas Khand, Gomti Nagar, Lucknow – 226 001

TF-3, First Mall, Mall Road, Ludhiana – 141 001

C-106, First Floor,, C Block, Metro Plaza, Delhi Road, Meerut, (UP)

Whispering Meadows Project, B-103, Daffodil Bldg., Opp. Model Town, Nr. Veena Nagar, Bal Rajeshwar Road, Mulund (W), Mumbai – 400 080

Ansal Heights, Dr. G.M. Bhonsle Marg, Near Worli Naka Mumbai – 400 018

Ground Floor, Opp. Gandhi Polytechnic, Bhopa Road, Muzaffarnagar, (UP)

SCO 91, 92 & 93, Sector – 5, City Centre, Panchkula – 134 109

Ansal Town, Sector 19, Opp. Govt. Girls Sr. Sec. School, Sec 4, By Pass Road, Rewari 123 401

SCO-174, Commercial Belt, Sector – 17, Jagadhari, Yamuna Nagar – 135 003

C O R P O R A T E I N F O R M A T I O N

2 Ansal Housing and Construction Ltd. � Annual Report 2007-08

Notice is hereby given that the 24th

Annual General Meeting of the Company

will be held on Tuesday, the 23rd day of

September, 2008 at 11.00 A.M. at Sri

Sathya Sai International Centre, and

School, Pragati Vihar, Lodhi Road, New

Delhi 110003 to transact the following

business:

ORDINARY BUSINESS1. To receive, consider and adopt the

audited Balance Sheet as at 31st

March, 2008 and Profit & Loss

Account for the financial year ended

on that date together with the

Directors’ Report and Statutory

Auditors’ Report thereon.

2. To declare dividend on Equity Shares

for the financial year ended 31st

March, 2008.

3. To appoint a Director in place of Shri

S.L. Chopra, who retires by rotation

and being eligible, offers himself for

re-appointment.

4. To appoint a Director in place of Shri

Pradeep Anand, who retires by

rotation and being eligible, offers

himself for re-appointment.

5. To appoint Statutory Auditors of the

Company to hold office from the

conclusion of this meeting until the

conclusion of the next Annual

General Meeting and to authorize

Board of Directors to fix their

remuneration. M/s Khanna &

Annadhanam retiring Auditors are

eligible for re-appointment.

SPECIAL BUSINESS6. To consider and if thought fit to pass

with or without modification(s) the

following Resolution as a SPECIAL

RESOLUTION.

“RESOLVED THAT the Company hereby

accords its approval and consent under

section 314(1B) and other applicable

provisions, if any, of the Companies Act,

1956 read with Directors’ Relatives

(Office or Place of Profit) Rules, 2003 and

subject to the approval of Central

Government, to the appointment of Shri

Karun Ansal son of Shri Deepak Ansal,

Chairman & Managing Director of the

Company and younger brother of Shri

Kushagr Ansal, Wholetime Director of

the Company, as President (Projects) of

the Company w.e.f. 1st October, 2008

on a remuneration of Basic Salary of Rs.

2,00,000/- per month in the pay scale of

Rs. 200000-50000-350000-75000-

500000 and House Rent Allowance

@50% of the Basic Salary plus usual

benefits and perquisites admissible to the

senior executives in the Management

Cadre including Gratuity,

Superannuation Fund, Provident Fund,

LTC, and other benefits as per Rules of

the Company from time to time.

RESOLVED FURTHER THAT the

Company hereby also grants its approval

and consent subject to further approval

of Central Govt. as required under the

provision of Section 314(1B) and other

applicable provisions, if any, of the

Companies Act, 1956 read with Director

Relatives (Office or Place of Profit) Rules,

2003 for payment of commission, to Shri

Karun Ansal @1% p.a. of the Net Profit

of the Company for each financial year

as computed under the provisions of

Section 349 & 350 of the Companies

Act, 1956.

RESOLVED FURTHER THAT the Board of

Directors be and are hereby authorized

to give from time to time such

increments to Shri Karun Ansal as they

may deem fit within the aforesaid

grade”.

N O T I C E

Regd.Office: By Order of the Board

15 UGF, Indra Prakash, 21 Barakhamba Road,

New Delhi – 110 001

Place: New Delhi (Mohinder Bajaj)

Dated: 28th July 2008 V.P. & Company Secretary

Regd.Office : 15 UGF, Indra Prakash, 21 Barakhamba Road, New Delhi – 110 001

Enriching your tomorrow 3

NOTES: 1. A MEMBER ENTITLED TO ATTEND

AND VOTE AT THE MEETING IS

ENTITLED TO APPOINT A PROXY TO

ATTEND AND VOTE INSTEAD OF

HIMSELF/HERSELF AND THE PROXY

NEED NOT BE A MEMBER OF THE

COMPANY. PROXIES IN ORDER TO

BE EFFECTIVE MUST BE RECEIVED AT

THE REGISTERED OFFICE OF THE

COMPANY NOT LESS THAN FORTY-

EIGHT HOURS BEFORE THE

SCHEDULED TIME OF THE ANNUAL

GENERAL MEETING.BLANK PROXY

FORM IS ENCLOSED;

2. The Register of Members and the

Share Transfer Books of the Company

shall remain closed from 16.09.2008

to 23.09.2008 (both days inclusive).

3. The Dividend on Equity Shares as

recommended by the Board of

Directors for the year ended 31st

March 2008, when declared at the

Annual General Meeting will be paid

to the members whose name

appear:-

i) As beneficial Owners as per list to

be furnished by the Depositories

in respect of the shares held in

demat form and

ii) As Members on the Register of

Members of the Company as on

23.09.2008 after giving effect to

all valid share transfers in physical

form which would be received by

the Company upto end of

Business hours on 15.09.2008.

4. Shareholders are requested to note

that no claims shall lie against the

Company or the said Fund in respect

of any amounts which were

unclaimed and unpaid for a period of

seven years from the dates that they

first became due for payment and no

payment shall be made in respect of

any such claims.

5. Members who hold shares in

dematerialized form may kindly note

that their bank Account details, as

furnished by their Depositories to the

company, will be printed on their

Dividend Warrants as per the

applicable regulations of the

Depositories and the Company will

not entertain any direct request from

such Members for deletion of or

change in such Bank Account details.

Further, instructions, if any, already

given by them in respect of shares

held in physical form will not be

automatically applicable to shares

held in electronic form. Members

who wish to change such Bank

Account details are therefore

requested to advise their Depository

Participants about such change with

complete details of Bank Account.

6. In accordance with the provisions of

Article 104 of the Articles of

Association of the Company, Shri S.L.

Chopra and Shri Pradeep Anand will

retire by rotation at this Annual

General Meeting and, being eligible,

offer themselves for re-election.

7. Information under clause 49 of the

Listing Agreement with the Stock

Exchanges in respect of Directors

seeking appointment/reappointment

at the Annual General Meeting is

separately annexed hereto as

Annexure - I.

8. Corporate Member intending to send

the authorized representative to

attend the meeting are requested to

send a certified copy of the Board

Resolution authorizing their

representative to attend and vote on

their behalf at the meeting.

9. Members having multiple accounts in

identical names or joint accounts in

same order are requested to intimate

the Company the ledger folio of such

accounts to enable the Company to

consolidate all such shareholdings

into one account and send the

relevant Share Certificates.

10. Pursuant to the directions of the

Securities and Exchange Board of

India (SEBI), trading in the shares of

your Company is in compulsory de-

materialized form for all investors.

Members who have not yet got their

shares de-materialized, are requested


to opt for the same in their own

interest and send their certificates

through Depository Participant(s)

with whom they have de-

materialized account directly to the

Registrar & Transfer Agent as

appointed by the Company namely

M/s Intime Spectrum Registry Ltd., A-

40, 2nd Floor, Naraina Industrial

Area, Phase - II, Near Batra Banquet

Hall New Delhi - 110 028.

11. Members who hold shares in

dematerialized form are requested to

bring their Client ID and DP ID Nos.

for easy identification of attendance

at the meeting.

12. Members/Proxies should fill in the

Attendance Slip for attending the

meeting.

13. As per the Companies Act 1956 the

facility for making nomination is now

available to the shareholders in

respect of the Equity Shares held by

them. Nomination forms can be

obtained from the Company’s

Registrars and Transfer Agents, Viz.

M/s Intime Spectrum Registry Ltd., A-

40, 2nd Floor, Naraina Industrial

Area, Phase-II, Near Batra Banquet

Hall, New Delhi-110028.

14. Members desiring any

information/clarification on the

Annual Accounts are requested to

write to the Company at its

Registered Office at-least 7 days

before the date of Annual General

Meeting so that the same may be

compiled well in advance.

15. Photocopies of Attendance Slip will

not be entertained for issuing

Admission Cards for attending

Annual General Meeting. However,

in case of non-receipt of Notice of

Annual General meeting, members

are requested to write to the

Company at its registered office for

issuing the duplicate of the same.

Members are requested to bring their copy of annual report at the meeting.

EXPLANATORY STATEMENT UNDER SECTION 173(2) OF THE COMPANIES ACT, 1956.

ITEM NO. 6Shri Karun Ansal is son of Shri Deepak

Ansal, Chairman & Managing Director of

the Company and is younger brother of

Shri Kushagr Ansal, Wholetime Director

of the Company.

Due to substantial expansion of

Company’s business and with a view to

closely monitor the progress and

implementation of various on-going

projects located in different States in the

Country, it has been considered

necessary to appoint Mr. Karun Ansal as

President (Projects) in the Company.

Shri Karun Ansal has been working as Vice

President in M/s Geo Connect Ltd. –

wholly-owned subsidiary company of

Ansal Housing & Construction Ltd. for the

last over one year.

Shri Karun Ansal has done his Bachelor

of Science, Marketing and Masters of

Business Administration (Finance) from

Bentley College, Waltham, USA. He has

attained State of the Art expertise in

System Management in addition to

exception skills in Finance etc. Shri Karun

Ansal has got exposure in the subjects

like basic financial markets, equity

valuation, mergers & acquisitions,

strategic management, sales

management, e-commerce, post merger

issues, budget analysis, developing and

implementation of a financial audit plan,

accounting, auditing, Internal control

assessment, policy & procedure review,

Networking and Monitoring of

Operations and Programme Evaluation

and Review Techniques etc.

During the course of his assignment with

M/s Geo Connect Ltd., Mr. Karun Ansal

has mastered and practiced well the

techniques of projects implementation

and maintenance of the Projects.

The Board of Directors in their meeting

held on 30th June, 2008 referred his case

to “Selection Committee” of the Board

for consideration of his appointment as

President (Projects) of the Company.

The appointment and remuneration of

Shri Karun Ansal as President (Projects)

was considered and approved by

“Selection Committee” of the Board

comprising of two Independent Directors

and an expert in their meeting held on

17th July, 2008. Based on the

recommendation of the “Selection

Committee”, the Board of Directors have

approved his candidature for

appointment as President (Projects) of

the Company in their meeting held on

28th July, 2008 subject to the approval

of the Shareholders in the ensuing

Annual General Meeting and of the

Central Government, on the

remuneration as stated in the Resolution.


Details of Directors seeking Appointment / reappointment at the Annual General Meeting as per clause49(IV)(G)(i) of the Listing Agreement.

Regd.Office: By Order of the Board

15 UGF, Indra Prakash, 21 Barakhamba Road,

New Delhi – 110 001

Place: New Delhi (Mohinder Bajaj)

Dated: 28th July 2008 V.P. & Company Secretary

It is expected that the Company would

benefit immensely with his induction as

President (Projects). The Board

recommends the resolution for approval

by the members.

None of the Directors of the Company

except Shri Deepak Ansal and Shri

Kushagr Ansal is concerned or interested

in the said Resolution.

The Board recommends the passing of

the Resolution set out in the Special

Resolution.

Particulars

Date of Birth

Date of Appointment

Qualification

Experience

Expertise in specific functional area

Directorships held in other Public

Companies (excluding Foreign

Companies) as at 31st March, 2008.

Memberships/Chairmanships of

Committees of other public Companies

(includes only Audit Committee and

Shareholders / Investors Grievance

Committee) as at 31st March, 2008.

Number of shares held on in the

Company as at 31st March, 2008

Mr.S.L.Chopra

21.09.1921

30.09.2005

B.A , C.A, L.L.B, FCS ( London ),

Business Management ( DU)

Having extensive experience of Banking

and Finance and retired as Chairman

and MD from Punjab National Bank.

Banking and Finance

Universal Cromptronics Ltd.

Nil

Nil

Mr. Pradeep Anand

15.01.1955

27.09.2000

Programme for Management Development

from Harvard Business School, Boston

Having rich and vast experience in variety of

industries.

Exceptional entrepreneur/ Business

Management Skills.� Asahi Meters Ltd.� Rita Holdings Ltd.� Shree Laxmi Holdings Ltd.� Anand Zenner Company Pvt. Ltd.� Asahi Battery Company Pvt. Ltd.� Asahi Video Pvt Ltd.� Atam Impex Enterprises Pvt. Ltd.� CLA Investment & Trading Co. Pvt Ltd.� Jyoti Construction Co. (New Delhi ) Pvt. Ltd.� Koshish Investment & Finance Pvt. Ltd.� Tripta Impex Enterprises Pvt. Ltd.

Nil

Nil

A N N E X U R E – 1


The Directors of your Company have pleasure in presenting their 24th Annual Report together with the Company’s Audited

Statement of Accounts for the financial year ended 31st March 2008.

Financial performanceYour Company’s performance on a standalone basis during the year as compared with the previous year’s is summarized as

follows:

D I R E C T O R S ’ R E P O R T

(Figures in Rs. lacs)

2007-08 2006-07

1. Sales and other income 25,177.54 20,146.37

2. Gross profit (before interest and depreciation) etc 9,414.63 6,832.37

Less :

- Interest and finance charges 1,022.76 839.50

- Depreciation 141.91 1,164.67 87.40 926.90

3. Net profit before tax 8,249.96 5,905.47

Less :

- Provision for tax 2,713.88 1,549.21

4. Net profit after tax but before prior period items 5,536.08 4,356.26

Less:

- Tax provisions for earlier year Nil 81.71

5. Net profit after tax and prior period items 5,536.08 4,274.55

Add :

Surplus profit brought forward for previous year. 7,343.94 3,921.27

Balance available for appropriation 12,880.02 8,195.82

6. Appropriations:

Proposed dividend @ 20% (previous year @ 18%) 351.42 300.77

Dividend tax thereon 59.72 51.12

Transfer to general reserve 3,000.00 3,411.14 500.00 851.89

7. Surplus profit carried over to Balance Sheet 9,468.87 7,343.93


General reserveThe Company proposes to transfer a sum

of Rs. 3,000 lacs (previous year 500 lacs)

to the general reserve out of the amount

available for appropriation. An amount

of Rs. 9,468.87 lacs is to be retained in

the Profit and Loss Account.

DividendIn view of the improved profitability your

Directors are pleased to recommend a

dividend of Rs. 2/- per equity share (20%)

on the Company’s paid up equity share

capital for the financial year ended 31st

March 2008. The total payout of the

proposed dividend is Rs. 411.14 lacs,

including Rs. 59.72 lacs of corporate

dividend tax. A motion for confirmation

of the dividend for the year is being

placed before the shareholders at the

Annual General Meeting.

Performance reviewThis represents a landmark year for the

Company as it delivered record financial

and operating performance amid

challenging and volatile market

conditions. Turnover for the year was Rs.

25,177.54 lacs compared with Rs.

20,146.38 lacs of the previous year,

reflecting a growth of 24.97%. The net

profit (post-tax) for the year 2007-08

stood at Rs. 5,536.08 lacs as against Rs.

4,274.55 lacs in 2006-07, recording an

increase of 29.51%. The earning per

share (EPS) has gone up from Rs. 28.39 to

Rs. 33.09, registering a y-o-y 16.55% rise.

Business“The Company’s decision to focus on

Tier-II and Tier-III cities has proved to be

a right step. A report by Ernst & Young

(E&Y), a global research and consultancy

firm, says several Indian cities with a

population of 0.5-1 million will emerge

as the most promising market for

residential and retail developments over

the next three to five years. This trend has

already started as property prices rise in

metros, the dearth of skilled cost-

effective manpower, comparatively high

cost of living and high operational costs,

drive technologically sound companies

towards Tier-II and Tier-III cities over the

next two to three years. During the year,

the development and construction work

in Rewari, Karnal, Agra, Indore, Meerut,

Zirakpur and NH 24 Ghaziabad projects

were initiated and this was followed by

an overwhelming response. In the year

2008-09, sanctions for our Amritsar,

Kurukshetra, Parwanoo, Jammu,

Bangalore, Yamuna Nagar and Alwar

projects are expected to be received and

development work on the majority of

these projects will also start during the

same year, resulting in a healthy growth

in sales and profits barring unforeseen

circumstances.

On the commercial front, Ansal Plaza,

Vaishali continues to be the Company’s

flagship commercial project, housing

leading domestic and international

brands. Over the coming years, the

Company plans to open new commercial

projects in Meerut, Rewari, Parwanoo,

Lucknow and Bangalore as well.

Real estate continues to be a fast

growing sector in India and your

Company is well positioned to capture

and benefit from its share in this growth.

During the year, your Company also tied

up with associates in the USA to cater to

the needs of the NRIs and negotiations

for similar arrangements are in progress

in the UK.

Management discussionand analysis report1. Industry structure,developments, opportunities andthreatsThe realty sector is expected to grow at a

rate of 30% annually over the next two-

three years. However, issues relating to

high interest rates, the subprime crisis in

the western economy, inflation and

abnormal oil prices are causing some

concerns in the market. The linkage, as to

how subprime will impact India is vague,

as major affected banks have not yet lent

in the same manner in India. The bankers

feel that India’s future prospects still look

comfortable. In due course, it is expected

that national and international efforts will

help rein in inflation and oil prices.

The National Urban Housing and Habitat

Policy, 2007, envisages increased public-

private partnership in the housing sector

and encourages integrated townships in


urban areas across the country. In order

to realise the dream of affordable

housing, the Government is committed

to increase public-private partnership to

build 25 million houses across India over

the next five years.

The expectation of the private sector is

that Government includes incentives like

additional floor area ratio and land

availability at cheaper price and

transferable development rights for Real

Estate development. Besides the

Government has done little to streamline

the process of sanctioning involved in the

course of obtaining project sanctions the

high incidence of stamp duties in some

states still continue to plaque even

industry. Faster approvals for projects and

reduction in the number of

agencies/authorities involved in the

sanctioning process will help greater and

timely supply of end products. This can

to some extent address the concerns of

the Government of high Real Estate prices.

The concern for the real estate industry

has led to the tightening of the lending

norms to the real estate sector by the

Reserve Bank of India. It has been highly

reactive to banks’ real estate exposures

over the two years as property prices

surged. This left developers with two

options; IPOs and PEs. The first one is

now drying out.

If the mayhem in the stock market

continues, other markets will also be

affected to some extent. In case inflation

and market volatility continue on a

sustained basis, we might see a delay in

house ownership by the actual buyers.

Overheated markets like those of

Mumbai and Gurgaon may be marginally

rationalized this year.

Further, the spotlight is that 16% of the

Indian work force is engaged in the

construction and transport sectors. It is

estimated that overall employment

generation in the economy on account of

additional investment in the

construction/housing sectors is eight

times the direct employment. Following

a substantial use of cement, steel,

marble/ceramic tiles, electrical wiring, PVC

pipes and various types of fittings;

construction activity has a multiplier effect

on the industrial demand for these items.

2. Segment-wise analysisThe Company’s revenue is generated

from two segments, namely

Development of real estate and

restaurants (hospitality).

Its hospitality division has opened one

more ‘Super Stars’ restaurant in the

Company-owned Ansal Plaza Mall in

Vaishali, Ghaziabad and is also opening

‘The Great Kabab Factory’ in DLF Mall in

Saket, New Delhi in August-September

2008. The division is performing well

with a turnover of Rs. 7.01 crores with a

sizeable profit of Rs. 1.80 crores in the

financial year 2007-08. A total of 121

employees are engaged in the division.

The division mainly has the brands Super

Stars and The Great Kabab Factory which

have been franchised from Radisson

Hospitality Worldwide. The division is

looking for more space within North

India to spread its wings further.

Capital Cars Pvt. Ltd., a joint venture

company for the sale/services of Honda cars

has contributed a turnover of

Rs. 111.48 crores and a net profit of Rs.

0.52 crores to the Consolidated Accounts

of the Company for the fiscal year 2007-08.

The major focus of the Company’s business

will be real estate development only.

3. OutlookShelter is a basic human need, next only

to food and clothing. At the end of the

Tenth Five-Year Plan, the housing

shortage is estimated at 24.7 million.

Flying high on the wings of booming real

estate, property in India has become a

dream for every potential investor

looking for profits. All are eyeing the

Indian property market for a wide variety

of reasons;

� Its ever-growing economy, is on acontinuous rise with over 8% increasewitnessed in the last financial year.The boom in the economy increasesthe purchasing power of its peopleand creates a demand for the realestate sector.

� India is going to produce anestimated 2 million new graduatesfrom various Indian universities thisyear, creating a demand for 100million square feet of office andindustrial space.

� Presence of a large number ofFortune 500 and other reputed


companies will attract morecompanies to initiate theiroperational bases in India, creatingmore demand for corporate space.

� Real estate investments in India yieldhuge dividends. 70% of the foreigninvestors in India are making profitsand another 12% are breaking even.

� Apart from IT, ITES and BusinessProcess Outsourcing (BPO), India hasshown its expertise in sectors likeauto-components, chemicals,apparels, pharmaceuticals andjewellery. These positive attributes aredefinitely going to attract moreforeign investors in the near future,providing funds for the realty sector.

The relaxed FDI rules implemented by

India have invited more foreign investors

and real estate in India seems the most

lucrative ground at present.

4. Risks and concernsRising petrol prices, inflation and interest

rates have developed major concerns.

Apart from softening demand, execution

of projects and de-risking of business

models will be the key challenges for the

realty firms going forward.

Affordability can come only with smaller

unit sizes, created within existing FSI

norms. So, it is expected that the

Government will relax the density norms

as per requirements of the present day.

According to a Brix research study, the

market is demanding affordable housing

units between Rs. 5 and Rs. 15 lacs. But

with the existing laws, the developers

face a lot of difficulties. For example,

currently the FSI and PPD (proposal to

increase prescribed density) laid down in

the Gurgaon Master Plan 2021 roughly

translates into 50-55 apartments of 1750

– 20000 sq. ft area in an acre of land,

making the minimum affordable unit

price approximately Rs. 45-55 lacs.

We need to change the norms that have

been fixed decades ago to achieve

affordable housing everywhere.

The cost of construction materials like

cement and steel, power, water and

labour have increased rapidly. Added to

this are the complicated and slow

government approvals. These are some

areas of concern which need to be

looked into by the respective government

departments.

5. Internal control systems andtheir adequacyYour Company has in place, adequate

internal control systems and procedures

commensurate with the size and nature

of our business. These procedures are

designed to ensure that:

� An effective and adequate internalcontrol environment is maintainedacross the Company.

� All assets and resources are acquiredeconomically, used efficiently and areadequately protected.

� Significant financial, managerial andoperating information is accurate,reliable and is provided timely, and

� All internal policies and statutory

guidelines are complied with.

6. Material developments inhuman resources/industrialrelations front, including numberof people employedThe Company is continuously

endeavouring to align the employees’

objectives with the business objectives of

the organisation through its HR policies,

process and other development initiatives

to achieve its organisational goals.

Industrial relations have been cordial at

all the sites, branches and offices.

The total number of employees in the

Company during the financial year 2007-

08 were 550.

Award of ISO 9001 – 2000Your Company enjoys the privilege of the

ISO 9001-2000 Certification granted to

it on 16th April 2002 by the well known

certification agency “Det Norske Veritas”.

The management will strive hard to stress

on the systems/quality for the ultimate

delivery of its products.

Higher paid staffIn accordance with Section 217(2A) of

the Companies Act, 1956, read with

Companies (Particulars of Employees)

Rules, 1975, a statement of Particulars of

Employees forming a part of this Report

is annexed herewith under Annexure.

Change in capital structureAuthorized share capitalDuring the year, the authorized share

capital of your Company increased from


Rs. 25 crores (divided into 1,99,90,000

equity shares of Rs. 10/- each and

5,01,000 redeemable cumulative

preference shares of Rs. 100/- each) to

Rs. 50 crores (divided into 4,49,90,000

equity shares of Rs. 10/- each and

5,01,000 redeemable cumulative

preference shares of Rs. 100/- each)

following an additional 2,50,00,000

equity shares of Rs. 10/- each.

Issue and allotment of equityshares during the financial year2007-081. The Company has issued and allotted

7,11,300 equity shares on

31.03.2008, on conversion of an

equal number of warrants out of

17,00,000 warrants allotted on 12th

January 2008 to the promoters.

2. The Company also issued and allotted

1,50,000 equity shares on 19th

February 2008 at a price of

Rs. 225/- per share of face value of Rs.

10/- each to the non-promoters group.

Issue and allotment of warrantsduring the financial year 2007-081. The Company has issued and allotted

17,00,000 warrants on 12th January

2008 at a price of Rs. 208/- per

warrant, each warrant convertible

into one fully paid up equity share of

Rs. 10/- each to the promoters of

the Company.

2. The Company has also issued and

allotted 19,50,000 warrants to

independent parties and 10,00,000

warrants to the promoters of the

Company on 19th February 2008 at a

price of Rs. 225/- per warrant, with

an option to the warrant holders to

acquire, for every warrant, one fully

paid up equity share of Rs. 10/- each

at a price of Rs. 215/- per share.

Conservation of energy,technology absorption,foreign exchange earningsand outgoConservation of energy,technology absorptionYour Company is not engaged in any

manufacturing activity; as such

particulars relating to the conservation of

energy and technology absorption as per

section 217(1) (e) are not applicable.

However, in the hospitality division, your

Company has appointed an energy

auditor and has implemented the

suggestions given by the energy auditor

to save energy bills. The regular energy

audit is carried out to identify the areas

where energy can be utilized in an

optimal manner.

Subsidiary companiesDuring the financial year 2007-08, the

Company has invested in the equity

shares of two companies, Aevee Iron and

Steel Works Pvt. Ltd. and Sunrise Facility

Management Pvt. Ltd., consequent upon

which the said companies have become

the wholly-owned subsidiaries (WOS) of

the Company on 24th May 2007 and on

11th July 2007 respectively.

Your Company has eleven wholly-owned

subsidiaries as on date. In terms of the

approval obtained from the Central

Government under Section 212(8) of the

Companies Act, 1956, copy of the

Balance Sheet, Profit and Loss Account,

Report of the Board of Directors and the

report of the auditors etc. of the

Foreign exchange earnings and outgoParticulars of foreign exchange earnings and outgo –

1 a) Foreign exchange earnings Rs. 53.10 lacs

b) Foreign exchange outgo

- Travel expenses Rs. 29.58 lacs

- Professional fee Rs. 9.70 lacs


subsidiary companies have not been

attached with the Company’s Balance

Sheet. These documents/other related

detailed information will be available

upon request by any member of the

Company/its subsidiaries. The annual

accounts of the subsidiary companies will

also be kept open for inspection by any

shareholder of the Company at its head

office and that of the subsidiary

companies concerned. Pursuant to

Accounting Standard AS-21 issued by

the Institute of Chartered Accountants of

India, Consolidated Financial Statements

include the financial information of its

subsidiaries and joint venture.

Fixed depositsFixed deposits from the public,

shareholders and the employees as on

31st March 2008 stood at Rs. 3,112.73

lacs compared with Rs. 2,237.07 lacs in

the previous year. There were unclaimed

deposits amounting to Rs. 44.84 lacs

pertaining to 181 depositors as on that

date and out of the above, 91 depositors

with deposits aggregating to Rs. 25.51

lacs have subsequently claimed refund or

renewed their deposits. However, the

balance amount of Rs. 19.33 lacs still

remains unclaimed.

Corporate GovernanceYour Company regards good Corporate

Governance as an important step

towards building strong investor

confidence, improving investor

protection and maximising long-term

shareholder value. Pursuant to Clause 49

of the Listing Agreement with the stock

exchanges, a compliance report on

Corporate Governance from the auditors

on compliance of mandatory

requirements has been annexed as a part

of this report.

In order to comply with the provisions of

the newly inserted Clause 47(f) in the

Listing Agreement with the stock

exchange(s), the Company has designated

an e-mail ID – [email protected], which is

exclusively for the

clarifications/queries/grievance redressals

of the investors of the Company.

Listing of equity sharesThe securities of the Company are listed

and traded at the Bombay Stock

Exchange Limited (BSE) and the National

Stock Exchange of India Ltd. (NSE). The

Company has paid listing fees to the

Bombay Stock Exchange Ltd. as well as

the National Stock Exchange of India Ltd.

for the financial year 2008-09.

DirectorsIn accordance with the relevant

provisions of Sections 255 and 256 of

the Companies Act, 1956 and Article 104

of the Company’s Articles of Association,

Shri S. L. Chopra and Shri Pradeep Anand

are liable to retire by rotation at the

ensuing Annual General Meeting and,

being eligible, offer themselves for

reappointment. The brief resume and

other details relating to the Directors,

who are to be reappointed as stipulated

under Clause 49(IV) of the Listing

Agreement, are furnished in the

Corporate Governance Report forming a

part of the Annual Report.

Directors’ responsibilitystatementPursuant to Section 217 (2AA) of the

Companies Act, 1956, the Directors

confirm the following in respect of the

Audited Annual Accounts for the

financial year ended 31st March 2008:

i) that in the preparation of the annual

accounts, the applicable accounting

standards have been followed with

no material departures;

ii) that the Directors have selected such

accounting policies and applied them

consistently and made judgements

and estimates that are reasonable

and prudent so as to give a true and

fair view of the state of affairs and

the profit of the Company for the

financial year ended 31st March

2008; and the profit for the

Company for that period;

iii) that the Directors have taken proper

and sufficient care of the

maintenance of adequate accounting

records in accordance with the

provision of the Act for safeguarding

the assets of the Company and for

preventing and detecting fraud and

other irregularities; and

iv) that the accounts for the year ended

31st March 2008 have been

prepared on a going concern basis.


Auditor’s ReportThere are no qualifications in the

Auditor’s Report calling for comments by

the Board of Directors under Section 217

of the Companies Act, 1956.

AuditorsM/s Khanna & Annadhanam, chartered

accountants, who retire at the conclusion

of this 24th Annual General Meeting,

and being eligible, have expressed their

willingness to be re-appointed as

Statutory Auditors of the Company. They

have given a certificate to the effect that

the appointment, if made, would be

within the limit prescribed under section

224 (1B) of the Companies Act, 1956.

Your Directors recommend their

appointment for another one year.

AppreciationThe Directors wish to place on record

their deep thanks and gratitude to;

a) The Central and State Governments

as well as their respective

departments and development

authorities connected with the

business of the Company, bankers of

the Company, housing finance as

well as other institutions for their co-

operation and continued support.

b) The shareholders, depositors,

suppliers and contractors for the trust

and confidence reposed and to the

customers for their valued patronage.

c) The Board also takes this opportunity

to express its sincere appreciation for

the efforts put in by the officers and

employees at all levels in achieving

the results and hopes that they

would continue their sincere and

dedicated endeavour towards the

attainment of better working results

during the current year.

Regd. office: For and on behalf of the Board of Directors

15 UGF, Indra Prakash

21 Barakhamba Road

New Delhi 110 001

Place: New Delhi ( Deepak Ansal )

Date: 28th July 2008 Chairman and Managing Director


Information as per Section 217(2A) read with the Companies (Particulars of Employees) Rules, 1975 and forming part of the Directors'

Report for the period ended 31st March, 2008.

A. Employed for the whole year.

A N N E X U R E T O D I R E C T O R S ’ R E P O R T

Notes :1. Gross remuneration includes Basic salary, commission, house rent allowance, employer's contribution to provident fund, superannuation fund,

gratuity and perquisites.

2. The employment of Shri Deepak Ansal and Shri Kushagr Ansal is contractual.

3. Other terms and conditions of employment are as per service rules of the Company.

Name of the Designation Gross Qualification Experience Date of Age Last Employment

Employee Remuneration (Years) Commencement (Yrs.) and Position Held

(Rs.) of Employment

Deepak Ansal Chairman and 2,35,55,847 B.Sc. 31 01.04.1990 55 Wholetime Director

Managing Engg. (Civil) Ansal Properties &

Director Infrastructure Ltd.

Kushagr Ansal Wholetime 1,20,93,712 B.Com (H) 7 01.04.2006 29 President

Director MBA(Finance) Ansal Housing &

Construction Ltd.

Divya Ansal Advisor 25,64,159 B.Com 6 01.04.2002 51 Management Advisor

(Interior Design Sunrise Management

and Landscape & Estates Pvt. Ltd.

K.K. Singhal Executive 46,71,808 B.Com(H) 26 09.02.1987 50 Assistant. Manager

Director FCA Ansal Properties &

Infrastructure Ltd.


1. The Company’sphilosophy on the code ofCorporate GovernanceThe Company continues to focus on

good Corporate Governance and its

primary objective is to attain the highest

level of transparency, accountability

towards its stakeholders, including

shareholders, employees, the

government and lenders and to

maximize returns to the shareholders

through the creation of wealth on a

sustainable basis. The Company believes

that all its actions must serve the

underlying goal of enhancing overall

shareholder value over a sustained period

of time.

The Company’s philosophy on Corporate

Governance is built on a rich legacy of fair,

transparent and effective governance,

including strong emphasis on human

values, individual dignity and adherence

to honest, ethical and professional

conduct. This enables customers and all

stakeholders to be partners in the

Company's growth and prosperity.

Your Company is committed to conduct

its affairs in accordance with the best

corporate practices and is constantly

striving to improve upon them. It firmly

believes that good Corporate

Governance stems from the

management's ideas and thoughts,

which cannot be regulated by legislation

alone. It not only ensures compliance

with various statutory and regulatory

requirements applicable to it, but also

goes beyond to ensure exemplary

Corporate Governance.

Your Company’s policy with regard to

Corporate Governance is an integral part

of management and in its pursuit of

excellence, growth and value creation, it

continuously endeavours to leverage

resources to translate opportunities

into reality.

2. Board of Directors

a) Composition, Meetings andAttendanceThe Board of Directors comprises two

Promoter Directors (one Executive

Chairman and Managing Director and one

Wholetime Director) and four Non-

Executive Directors as on 31st March 2008.

The composition of Directors, their

attendance at the Board meeting during

2007-08 and the last Annual General

Meeting and their other

Directorships/Committee memberships in

other companies are as follows:

Note: (i) Where a Director is a Chairman in other companies, he has been included in both as Director and as Chairman.

(ii) None of the Directors on the Board is a member of more than 10 committees and Chairman of more than five committees across allcompanies in which they are Directors.

P-ECMD Promoter and Executive Chairman and Managing DirectorP- E WTD Promoter and Executive Whole time DirectorI- NED Independent and Non-Executive Director* Excludes Directorships/Chairmanships held in private limited companies, foreign companies, companies under Section 25 of the Companies Act,1956, and Memberships/Chairmanships of Managing Committees of various chambers/institutions.** Memberships/Chairmanships of the Audit Committee, Shareholders’ Grievance Committee have been considered.

C O R P O R A T E G O V E R N A N C E

Name of Director Category Attendance Particulars Directorships / Chairmanship Committee memberships /

held in other companies* Chairmanship held in

other companies**

Board meetings Last AGM As Director As Chairman As Member As Chairman

Shri Deepak Ansal P-E CMD 11 Yes 2 – – –

Shri Kushagr Ansal P-E WTD 8 Yes – – – –

Shri Sham Lal Chopra I-NED 11 Yes 1 – – –

Shri Ashok Khanna I-NED 10 No 4 3 – –

Shri Pradeep Anand I-NED 8 Yes 3 – – –

Shri S.L. Kapur I-NED 11 No 8 1 2 3

As on 31st March 2008


c) Executive Chairman andManaging DirectorThe Company has one Executive

Chairman and Managing Director, Shri

Deepak Ansal, who is responsible for the

overall planning, policy, strategy,

operations and marketing activities of the

Company.

d) Wholetime DirectorThe Company has one Wholetime

Director, Shri Kushagr Ansal, who is

responsible for the overall marketing and

business development operations of the

Company.

e) Retirement of DirectorsShri Deepak Ansal, the Chairman and

Managing Director was reappointed for a

period of five years with effect from 1st

April 2008 and he is not liable to retire

by rotation. Shri Kushagr Ansal, a

Wholetime Director, was appointed by

the shareholders on 29th September

2006 as the Wholetime Director w.e.f.

1st October 2006 and he is not liable to

retire by rotation.

The Non-Executive and Independent

Directors are liable to retire by rotation

as per provisions of the Companies Act,

1956. Accordingly, Shri S. L. Chopra and

Shri Pradeep Anand are liable to retire by

rotation at the ensuing Annual General

Meeting and being eligible, offer

themselves for re-appointment.

Shri Sham Lal Chopra

Shri Sham Lal Chopra, a former Chairman

and Managing Director of Punjab

National Bank, possesses extensive

experience of banking and finance. He

is the Company advisor on fund raising

and other related issues.

Shri Pradeep Anand

Shri Pradeep Anand is the Chairman of

Asahi Battery Company Pvt. Ltd. and

Asahi Meters Ltd. He has a rich and vast

experience in a variety of industries. He

was earlier the Vice-Chairman and

Managing Director of Punjab Anand

Batteries Ltd. (India). He is also a Director

on the Board of a number of renowned

companies.

3. Board Committees Currently, the Board has five committees:

Audit Committee, Committee of the

Board, Share Transfer and Redressal of

Shareholders’ Grievances Committee,

Selection Committee and Remuneration

Committee. All committees consist

entirely of Independent Directors.

The Board is responsible for constituting,

assigning, co-opting and fixing the terms

of service for the committee members.

The Chairperson of the Board, in

consultation with the Company Secretary

b) Details of Board meetings and the attendance of Directors during the financial year 2007-08

Date of Board Meetings No. of Directors present

26th June 2007 6

31st July 2007 6

23rd August 2007 5

1st September 2007 4

31st October 2007 6

11th December 2007 5

18th December 2007 4

12th January 2008 6

31st January 2008 6

19th February 2008 5

31st March 2008 6


and the committee chairperson,

determine the frequency and duration of

the committee meetings.

Recommendations of the committees are

submitted to the Board for approval.

The quorum for meetings is either two

members or one-third of the members of

the committee, whichever is higher.

a) Audit CommitteeTo oversee the Company’s financial

reporting process and disclosure of its

financial information, including internal

control system, reviewing the accounting

policies and practices, report of the

Company’s internal auditor and

quarterly/half-yearly/yearly financial

statements as also to review financial

management and policies, the Company

has set up an Audit Committee at the

Board level on 30th January, 2001. The

terms of reference of Audit Committee

are in accordance with Section 292 (A)

of the Companies Act, 1956, and the

guidelines set out in Clause 49 of the

Listing Agreement.

The Committee comprises the following four Independent Directors:

Shri Sham Lal Chopra acts as the Chairman of the Committee and the Company Secretary is the secretary of the Committee.

Six Audit Committee meetings were held during the financial year 2007-08 on 25th June 2007, 31st July 2007, 23rd August 2007,

31st October 2007, 31st January 2008 and 31st March 2008, respectively.

Attendance of each member at the Audit Committee meetings held during the year:

Role of the Audit Committee

Audit Committee of the Board of

Directors was constituted on 30th

January, 2001. The scope of the activities

of the Audit Committee is as set out in

Clause 49 of the Listing Agreement with

the stock exchange(s) read with Section

292A of the Companies Act, 1956. The

terms of reference of the Audit

Committee inter-alia includes:

1. review the compliance with internal

control systems;

2. review the findings of the internal

auditor related to various functions

of the Company;

3. hold periodic discussions with the

Company’s statutory auditors and

internal auditors, concerning the

accounts of the Company, internal

control systems, scope of audit and

observations of the auditors/internal

auditors;

4. review the quarterly, half-yearly and

annual financial results of the

I Shri Sham Lal Chopra Independent Director

II Shri Pradeep Anand Independent Director

III Shri Ashok Khanna Independent Director

IV Shri S.L. Kapur Independent Director

Name of the member No. of meetings attended

Shri Pradeep Anand 5

Shri Ashok Khanna 6

Shri Sham Lal Chopra 6

Shri S.L. Kapur 6


Company before submission to the Board;

5. make recommendations to the Board on any matter related to the Company’s financial management, including statutory and

internal audit reports;

6. make recommendations on the appointment of statutory auditors and fixation of their remuneration.

The details of the sitting fee paid to the members during the financial year 2007-08 for attending Audit Committee meetings are

as follows:

b) Committee of the BoardThe Committee of the Board was constituted on 30th May 1997 in pursuance of Article 116 of the Articles of Association of the

Company with specific powers to look after the business delegated to it which falls between two Board meetings and are emergent

and cannot be postponed. The following are the members of the Committee as on date.

Three meetings of the Committee of the Board were held on 14th May 2007, 23rd November 2007, and 22nd December 2007

during the financial year 2007-08.

The details of sitting fee paid to the members during the financial year 2007-08 for attending meetings of Committee of the Board

is as follows:

c) Share Transfer and Redressal of Shareholders’ Grievance CommitteeThe Company’s Board has constituted a Committee of Directors to specifically look after share transfer work and to look into the

redressal of complaints like transfer of shares, non-receipt of Annual Report and non-receipt of dividend etc. named ‘Share Transfer

and Redressal of Shareholders Grievance Committee’. The Committee consists of the following Directors.

i) Shri Sham Lal Chopra Independent Director

ii) Shri Deepak Ansal Member (Executive Chairman and Managing Director)

i) Shri Sham Lal Chopra Chairman (Independent Director)

ii) Shri Pradeep Anand Member (Independent Director)

iii) Shri Deepak Ansal Member (Executive Chairman and Managing Director

Name of the members Amount of sitting fee (Rs.)

Shri Pradeep Anand 1,00,000

Shri Ashok Khanna 1,20,000

Shri Sham Lal Chopra 1,20,000

Shri S.L. Kapur 1,20,000

Total 4,60,000

Name of the member No. of meetings attended Amount of sitting fee (Rs.)

Shri Sham Lal Chopra 3 60,000

Shri Deepak Ansal 3 –


Shri Sham Lal Chopra acts as the

Chairman of the Share Transfer and

Redressal of Shareholders Grievance

Committee. The Company Secretary is

the Secretary of the Committee. The

Board has designated Shri Mohinder

Bajaj, the Vice-President and Company

Secretary as the Compliance Officer of

the Company.

In order to process routine transfers, a

committee of two Members viz. Shri K. K.

Singhal, Executive Director and Shri

Mohinder Bajaj, V.P. and Company

Secretary, was formed on 19th June 2002.

Twenty two meetings of the senior

executives of Share Transfer Committee

were held during the financial year

2007-08.

The share department of the Company

and the registrar and share transfer

agent, M/s Intime Spectrum Registry

Limited attended all grievances of the

shareholders and investors received

directly or through SEBI, the Stock

Exchanges, Ministry of Corporate Affairs,

Registrar of Companies etc.

The total number of complaints received

and resolved to the satisfaction of

investors during the financial year

2007-08 are as follows:

d) Selection CommitteeThe Board of Directors have constituted

“Selection Committee” of the Board on

30th June 2003. The Selection

Committee comprises two Independent

Directors, viz. Shri Sham Lal Chopra and

Shri S.L. Kapur. Shri S.L. Kapur was

appointed as member of the Selection

Committee by the Board of Directors in

their meeting held on 26th August 2006.

The Committee looks into the

appointments of relatives of Directors in

the Company. One meeting of the

Selection Committee was held on 2nd

August 2007. The details of sitting fee

paid to the member during the financial

year 2007-08 for attending the meeting

of the Selection Committee of the Board

are as follows.

Particulars Received Resolved Pending

Non-receipt of share certificates after transfer 7 7 Nil

Non-receipt of share certificates after transmission 2 2 Nil

Non-receipt of share certificates after endorsement 11 11 Nil

Non-receipt of dividend 1 1 Nil

Loss of share certificates/Issue of duplicate share certificates 18 18 Nil

Pending demat requests 1 1 Nil

Pending remat requests Nil Nil Nil

Non-receipt of refund order/allotment advice Nil Nil Nil

Asking procedure for transmission 1 1 Nil

Asking for stickers against fully paid shares 1 1 Nil

Miscellaneous 18 18 Nil

Total 60 60 Nil

S.No Name of the member Amount of sitting fee (Rs.)

i) Shri Sham Lal Chopra 20,000

ii) Shri S. L. Kapur 20,000


e) Remuneration CommitteeThe Company’s Board of Directors have

constituted the Remuneration

Committee of the Board on 29th July

2004. The Remuneration Committee

comprises the following four

Independent Directors:

1. Shri Sham Lal Chopra

2. Shri Pradeep Anand

3. Shri Ashok Khanna

4. Shri S. L. Kapur

Shri Sham Lal Chopra acts as the

Chairman of Remuneration Committee.

The Committee looks into the

remuneration of Executive Directors in

the Company. No meeting of the

Remuneration Committee was held

during the financial year 2007-08.

Broad terms of reference of the

Remuneration Committee are as under:

a) to approve the remuneration and

commission/incentive remuneration

payable to the Managing Director for

each financial year.

b) such other matters as the Board may

from time to time request the

Remuneration committee to examine

and recommend/approve.

Remuneration policy

While recommending/determining the

remuneration packages, the Committee

takes into account:

a) financial position of the Company,

trend in the industry, appointee’s

qualification, experience, past

performance, past remuneration etc;

b) the Company keeps itself in a

position to bring in objectivity in

determining the remuneration

package, while striking a balance

between the interest of the Company

and the shareholders;

Sitting fee to Non-Executive Directors

for the meetings of the Board of

Directors

The Company was paying a sitting fee of

Rs. 20,000 for each meeting of the Board

of Directors to all the Directors other than

Chairman and Managing Director and

Wholetime Director. No remuneration

other than sitting fee was paid to the

Non-Executive Directors. The sitting fee

paid to the Non-Executive Directors for

attending the meetings of Board of

Directors for the year ended 31st March

2008 is as follows.

Name of the Director Designation Basic Allowances and Commission Contribution to provident Total (Rs.)

salary (Rs.) perquisites (Rs.) (Rs.) fund, gratuity, superannuation

fund and other benefits (Rs.)

Shri Deepak Ansal Chairman and 36,00,000 19,68,719 1,70,94,053 8,93,075 2,35,55,847

Managing Director

Shri Kushagr Ansal Wholetime Director 21,00,000 10,79,300 8547027 3,67,385 1,20,93,712

Remuneration to the Executive Directors for the financial year 2007-08

Name of Director Amount of Sitting Fee paid (Rs.)

Shri Sham Lal Chopra 2,20,000

Shri Ashok Khanna 2,00,000

Shri Pradeep Anand 1,60,000

Shri S.L. Kapur 2,20,000

Total 8,00,000


5. Disclosure of code ofconduct and ethics forDirectors and seniormanagementThe Board of Directors in their meeting

held on 22nd October 2005, adopted

the code of conduct for all Board

members and senior management of the

Company. The code of conduct was

already posted on the Company’s

website for general viewing.

All Directors, senior management must

act within the bounds of the authority

conferred upon them and with a duty to

make and enact informed decisions and

policies in the best interests of the

Company and its Shareholders /

Stakeholders.

The Code was circulated to all the

members of the Board and senior

management and the compliance of the

same was affirmed by them. A

declaration signed by the Chairman and

Managing Director is given below:

4. Details of shares of the Company held by the Directors as on March 31 2008

6. General body meetingsa) Particulars of the last three Annual General Meetings

Name of Director No. of Shares

Shri Deepak Ansal 18,04,510

M/s Deepak Ansal & Sons (HUF) 6,900

Shri Kushagr Ansal 8,43,830

Shri S. L. Chopra Nil

Financial year Day Date Time Venue

2004-05 Friday 30.09.2005 3.00 p.m. Sri Sathya Sai International Centre and School, Pragati Vihar

Lodhi Road, New Delhi 110 003

2005-06 Friday 29.09.2006 3.00 p.m. Sri Sathya Sai International Centre and School, Pragati Vihar


2006-07 Thursday 27.09.2007 11.00 a.m. Sri Sathya Sai International Centre and School, Pragati Vihar


“I hereby confirm that:

The Company has obtained from all the members of the Board and Senior Management affirmation that they have complied

with the Code of Business Conduct and Ethics for Directors and Senior Management in respect of the financial year 2007-08

Deepak Ansal

Chairman and Managing Director


b) One special resolution was passed on

20th December 2007 through postal

ballot with regard to preferential

issue of 17,00,000 warrants at a

price of Rs. 208/- per warrant, each

warrant convertible into one fully

paid up equity share of Rs. 10/- each

to the promoter of the Company.

c) No special resolution is proposed to

be conducted this year through

postal ballot.

d) The details of matters relating to the

special resolutions passed in the last

three AGMs are as under:

Financial year 2006-07

i) To consider and approve the increase

in salary of Ms Divya Ansal, Advisor

(interior design and landscape) of the

Company, wife of Shri Deepak Ansal,

Chairman and Managing Director

w.e.f from 1st October 2007, in

accordance with the provisions of

Section 314(1B) of the Companies

Act, 1956.


i) To offer, issue and allot on rights

basis/private placement basis by way

of preferential allotment and/or any

other basis equity shares/preference

shares/debentures etc. to the

shareholders, public or any other

persons including FIIs, QIBs, NRIs,

Promoters, Non-Promoters etc.

provided that the aggregate value of

all the securities issued and allotted

shall not exceed US $50 million.


i) Issue and allotment of 10,00,000

warrants convertible into equity.

ii) Appointment of Mrs. Divya Ansal as the

advisor (interior design and landscape)

with effect from 1st July 2005.

iii) To create issue, offer and allot in

national and international offering

any securities including

GDR/FCCB/ADR convertible into

equity shares, preference shares

whether cumulative or non-

cumulative/redeemable/convertible at

the option of the Company or

security holder and/or securities

linked to equity shares/debentures,

bonds, warrants convertible into

equity shares/preference shares

aggregate sum of US$25 million.

e) Extraordinary General MeetingOne Extraordinary General Meeting was

held on 12th January 2008 during the

financial year 2007-08, in connection

with the placement of 2,50,000 equity

shares of the Company to the

independent parties at a price of Rs.

225/-, including a premium of

Rs. 215/- per equity share and 19,50,000

warrants convertible into equity shares to

the independent parties at a price of

Rs. 225/- including a premium of

Rs. 215/- and 10,00,000 warrants,

convertible into equity shares to the

Company’s promoters at a price of Rs.

225/- including a premium of Rs. 215/-

per equity share for an overall amount

not exceeding Rs. 72/- crores (including

premium).

The Company also increased the

authorized share capital of the Company

from Rs. 25 crores (divided into

1,99,90,000 equity shares of Rs. 10/- each

and 5,01,000 redeemable cumulative

preference shares of Rs. 100/- each) to Rs.

50 crores (divided into 4,49,90,000 equity

shares of Rs. 10/- each and 5,01,000

redeemable cumulative preference shares

of Rs. 100/- each) by creation of additional

2,50,00,000 equity shares of Rs. 10/-

each.

7. Disclosuresa) The Company complied with all the

requirements of regulatory

authorities on capital markets and no

penalties/strictures have been

imposed against it at any point of

time in the last three years.

b) There are no pecuniary relationships

or transactions with the Non-

Executive Directors other than the

sitting fee paid to them.

c) The amount of outstanding loan to

M/s Geo Connect Ltd. (a wholly

owned subsidiary company) as on

31st March 2007 was Rs. 10.36

crores (excluding the current account

of Geo Connect Limited divisions).

During the year M/s Geo Connect Ltd.

repaid an amount of Rs. 5.36 crores

and the loan amount outstanding

with M/s Geo Connect Ltd. as on

31.03.2008 is Rs. 5.00 crores.

d) Other than the above, there are no


materially significant related party

transactions that may have potential

conflict with the interests of the

Company at large. All the related

parties’ disclosure for the financial

year ended 31st March 2008 are

specifically disclosed under schedule

16 to the Balance Sheet for the

financial year 2007-08.

e) Risk management

The Company laid down procedures to

inform Board members about the risk

assessment and minimization procedures.

These procedures are periodically

reviewed to ensure that the executive

management controls risks through

means of a property defined framework.

f) Certificate from Chairman andManaging Director and ChiefFinancial Officer

Certificate from Shri Deepak Ansal,

Chairman and Managing Director and

Shri Sanjay Mehta, Chief Financial

Officer, in terms of Clause 49(V) of the

Listing Agreement with the stock

exchanges for the financial period ended

31st March 2008 was placed before the

Board of Directors of the Company in its

meeting held on 30th June 2008.

8. Means of communication

a) Half-yearly report sent to each households of shareholders Half-yearly report has not been sent to the households of

shareholders as the results of the Company were published in the newspapers.

The Economic Times (E) 01.11.07

Nav Bharat Times (H) 02.11.07

b) Quarterly results :

i) Newspapers where quarterly results were published The Economic Times (E) 01.08.07





Rashtriya Sahara (H) 01.02.08

ii) Website where quarterly results were displayed www.ansals.com

c) EDIFAR compliance Pursuant to Clause 51 of the Listing Agreement, financial information

like quarterly financial statements, shareholding pattern and segment-

wise results etc are available on the website www.sebiedifar.nic.in

with effect from the quarter ended 30th June 2003.

d) Whether the website also displays official news releases Yes, the Company’s official news releases and presentations to

and presentations to institutional investors/analysts institutional investors/analysts are displayed on Company’s

website i.e. www.ansals.com

e) Newspapers where audited financial results are published The Economic Times (E) 01.07.2008

Times of India (E) 01.07.2008

Navbharat Times (H) 02.07.2008

f) Whether the management discussion and analysis is a Yes

part of the Annual Report or not.


9. General shareholder information

i) Annual General Meeting

Day, date and time Tuesday, the 23rd September 2008

Venue Sri Sathya Sai International School, Pragati Vihar, Lodhi Road, New Delhi 110 003

ii) Financial calendar Financial year of the Company is 1st April to 31st March

Approval of unaudited results (2008-09) Within one month from the end of the respective quarter.

Financial reporting for the quarter ended June, 08 on or before July, 2008

Financial reporting for the quarter ended Sept, 08 on or before October, 2008

Financial reporting for the quarter ended Dec., 08 on or before January, 2009

Financial reporting for the quarter ended Mar, 09 on or before April, 2009

iii) Dates of book closure 16th to 23rd September 2008 (both days inclusive)

iv) Dividend (proposed 20%) Dividend, if any, declared in forthcoming 24th Annual General Meeting

will be paid within 30 days of the date of declaration.

v) Registered office 15 UGF, Indra Prakash, 21 Barakhamba Road, New Delhi 110 001

Tel: 011-43577100, Fax: 011-23350847, Email: [email protected]


vi) Listing on stock exchanges The Bombay Stock Exchange Ltd.

Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai 400 001

National Stock Exchange of India Ltd.

“Exchange Plaza”, Bandra-Kurla Complex, Bandra (E), Mumbai 400 051.

vii) Listing fees for 2008-09 was paid to the Bombay Stock Exchange Ltd. and the National Stock Exchange of India Ltd. where

Company’s shares are listed.

viii) Stock code

1. The Bombay Stock Exchange Limited 507828

2. The National Stock Exchange of India Ltd ANSALHSG

3. Equity ISIN INE880B01015

ix) Share transfer system:

The share transfer work is handled by the registrar. The share transfer agent is M/s Intime Spectrum Registry Ltd., A-40 2nd floor,

Naraina Industrial Area, Phase II, Near Batra Banquet Hall, New Delhi 110 028.

However, keeping in view the convenience of shareholders, documents related to shares will continue to be received by the Company at

its Registered office at 15 UGF, Indra Prakash, 21 Barakhamba Road, New Delhi 110 001.

x) Dematerialization/rematerialization of shares:

All the requests for dematerialization and rematerialization of shares are received by our registrar and transfer agent M/s Intime

Spectrum Registry Ltd., A-40 second floor, Naraina Industrial Area, Phase II, near Batra Banquet Hall, New Delhi 110028 through the

respective depository participant of the clients directly and are demated within a stipulated period of 21 days.

xi) Investor correspondence

All inquiries, clarifications and correspondence should be addressed to the compliance officer at the following address:

Compliance officer Mr. Mohinder Bajaj, V.P. and Company Secretary, Ansal Housing and Construction Ltd., 15 UGF, Indra

Prakash, 21 Barakhamba Road, New Delhi 110 001


10. Other usefulinformation forshareholdersi) The Directors recommended a

dividend of Rs. 2/- per equity share i.e.

20% on the paid-up equity share

capital of the Company for the

financial year ended 31st March 2008.

ii) Equity shares of the Company are

under compulsory demat trading by

all investors w.e.f. 30th October

2000. Considering the advantage of

scripless trading shareholders are

requested to consider

dematerialization of their

shareholding so as to avoid

inconvenience in the future.

iii) Members/beneficial owners are

requested to quote their folio no. /D.P.

and client I.D as the case may be in all

correspondence with the Company.

iv) Members holding shares in physical

form are requested to notify the

Company, about change in their

addresses, if any and bank details.

v) Beneficial owners of shares are

requested to send their instructions

regarding change of address, bank

details, nomination, power of

attorney etc. directly to their DP as

the same are maintained by the DPs.

vi) Section 109A of the Companies Act,

1956, extends nomination facility to

individuals holding shares in physical

form in companies. Members, in

particular those holding shares in a

single name, may avail the above

facility by furnishing the particulars of

their nomination in the prescribed

nomination form.

vii) Issue of equity shares on preferential

basis on conversion of warrants, each

warrant convertible into one

equity share.

Issue of warrant convertible into equal

number of equity shares in 2007-08 is

as per the details given below:

Issue of equity shares during 2007-08 is as per details given below:

viii) Registrar and share transfer agentThe Company appointed share transfer agents for both the physical and demat transactions w.e.f. 1st April 2003 as under:

Date of allotment No. of warrants Allotted to

of warrants

12th January 2008 17,00,000 warrants at a price of Rs. 208/- per warrant, each warrant convertible into Promoters

one fully paid-up equity share of Rs. 10/- each.

19th February 2008 19,50,000 warrants at a price of Rs. 225/- per warrant, each warrant convertible into Non-Promoters

one fully paid-up equity share of Rs. 10/- each.

19th February 2008 10,00,000 warrants at a price of Rs. 225/- per warrant each warrant convertible into Promoters

one equity share of Rs. 10/- each.

Date of allotment No. of equity shares Allotted to

19th February 2008 1,50,000 equity shares at a price of Rs. 225/- per equity share of face value of Rs. 10/- each. Non-Promoters

31st March 2008 7,11,300 equity shares issued on conversion of 17,00,000 warrants allotted on Promoters

12th January 2008.


M/s Intime Spectrum Registry Ltd.

A-40, second floor, Naraina Industrial Area, Phase II, Near Batra Banquet Hall, New Delhi 110 028

Tel.: 011-41410592-94, Fax: 011-41410591, E-mail: [email protected]

Website : www.intimespectrum.com

ix) Distribution of shareholdingThe distribution of shareholding as on 31st March 2008.

xi) Dematerialization of sharesand liquidity:The shares of the Company fall under the

category of compulsory delivery in

dematerialized mode by all categories of

investors. The Company has signed

agreements with both the depositories i.e.

National Securities Depository Limited and

Central Depositories Service (India)

Limited. As on 31st March, 2008, 90.99%

of the share capital of the Company has

already been dematerialized.

xii) OutstandingGDRs/ADRs/warrants or anyconvertible instrumentsThe Company has not issued any

GDRs/ADRs. The Company has come-up

with the preferential issue of warrants

Shareholding Shareholders Amount (Rs.)

(no. of shares)

Number % to total (Rs.) % to total

Up to 5000 17,429 93.278 2,12,30,050 12.083

5,001 10,000 756 4.046 57,74,640 3.286

10,001 20,000 250 1.338 37,13,270 2.113

20,001 30,000 94 0.503 24,74,380 1.408

30,001 40,000 28 0.150 9,82,920 0.559

40,001 50,000 26 0.139 12,18,490 0.693

50,001 1,00,000 37 0.198 27,73,820 1.579

1,00,001 and above 65 0.348 13,75,40,870 78.278

Total 18,685 100.000 17,57,08,440 100.000

x) Shareholding pattern as on 31st March 2008

S.no. Category No. of shares held % of shareholding

1 Promoters 74,29,508 42.28316

2 Mutual funds/UTI 3,12,413 1.77801

3 Banks, financial institutions, insurance companies 7,900 0.04496

4 Private corporate bodies 22,60,228 12.86351

5 Indian public 39,79,651 22.64917

6 NRIs, foreign nationals, OCBs and FIIs 35,81,144 20.38117

Total 1,75,70,844 100.00


during the financial year 2007-08. On

12th January 2008, the Company issued

17,00,000 warrants at a price of

Rs. 208/- each, each warrant convertible

into one equity of the face value of

Rs. 10/- each at a premium of Rs. 198/-

per share to the Promoters of the

Company. Out of this 7,11,300 equity

shares were allotted on 31st March 2008

on conversion of an equal number of

convertible warrants to the Promoters of

the Company on 31st March 2008. There

are 9,88,700 convertible warrants

outstanding on account of the first

preferential issue.

On 19th February 2008, the Company

issued 19,50,000 warrants at a price of

Rs. 225/- per warrant, each warrant

convertible into one equity share of the

face value of Rs. 10/- each at a premium

of Rs. 215/- per share to the independent

parties and 10,00,000 warrants at a price

of Rs. 225/- per warrant, each warrant

convertible into one equity share of the

face value of Rs. 10/- each at a premium

of Rs. 215/- per share to the Promoters of

the Company.

xiii) Communication to theCompanyFor expeditious disposal of the matters

concerning shares and debentures etc.,

members are requested to address all

letters directly to the Company’s share

department situated at its registered

office of the Company at New Delhi,

quoting reference of their folio numbers

and/or client ID and DP ID, e-mail ID,

telephone/fax number for prompt reply

to their communication. Other queries

may be sent at [email protected] or faxed

at 011-23350847. The investor

grievances in the nature of the complaint

may be sent to the Company Secretary at

the following address:

Ansal Housing and Construction Ltd.

15 UGF Indra Prakash,, 21 Barakhamba

Road, New Delhi 110 001

With a view to facilitate speedy

communication, shareholders may

furnish their e-mail ID to the share

department of the Company.

xiv) Market price dataThe monthly high and low quotations and

volume of shares traded on the BSE and

the NSE during the financial year 2007-

08 were as follows:

Month BSE NSE

High (Rs.) Low (Rs.) Volume (nos.) High (Rs.) Low (Rs.) Volume (nos.)

April 2007 315.75 232.20 5,54,327 308 232 4,55,348

May 2007 295.00 231.60 3,06,568 295 232 33,950

June 2007 260.00 219.50 6,95,194 257 219.90 3,29,209

July 2007 251.00 203.00 5,66,315 250.45 208.15 5,23,553

August 2007 213.00 191.00 3,16,539 215 190.10 3,79,305

September 2007 232.00 175.00 4,82,069 231.90 195.05 4,87,372

October 2007 205.20 151.50 8,80,167 207 147 6,91,853

November 2007 204.00 155.00 7,35,414 206 157.45 6,69,470

December 2007 370.00 184.00 37,46,650 366.80 184.10 32,33,054

January 2008 408.00 214.20 14,92,702 415.70 214.95 11,42,149

February 2008 251.00 200.25 3,32,304 255 199 3,89,049

March 2008 207.00 130.00 4,90,788 207 134.15 2,67,654


11. Compliance with mandatoryrequirements and adoption ofnon-mandatory requirements ofClause 49 of the ListingAgreement with the stockexchangesThe Company complied with all the

mandatory requirements as per Clause

49 of the Listing Agreement. The

Company constituted Remuneration

Committee to review and recommend

remuneration of the Executive Directors.

The adoption of non-mandatory

requirements of Clause 49 of the Listing

Agreement is reviewed by the Board

from time to time.

12. Whistle blower mechanismThough it is not a mandatory

requirement but the employees of the

Company have access to the senior

management and the Audit Committee

to report about any unethical behaviour,

actual or suspected fraud or violation of

the Company’s code of conduct or ethics

policy. The existence of the mechanism is

appropriately communicated within the

organization.


We have examined the compliance of

conditions of Corporate Governance by

M/s Ansal Housing and Construction Ltd.

for the year ended on 31st March 2008

as stipulated in Clause 49 of the Listing

Agreement of the said Company with the

stock exchanges in India.

The Compliance of conditions of

Corporate Governance is the

responsibility of the management of the

Company. Our examination was limited

to review of procedures and

implementation thereof, adopted by the

Company for ensuring the compliance of

the conditions of the Corporate

Governance. It is neither an audit nor an

expression of option on the financial

statements of the Company.

In our opinion and to the best of our

information and according to the

explanations given to us, we certify that

the Company has in all material respects

complied with the conditions of

Corporate Governance as stipulated in

the above mentioned Listing Agreement.

We state that such compliance is neither

an assurance as to the future viability of

the Company nor the efficiency or

effectiveness with which the

management conducted the affairs of

the Company.

To

The Members of

M/s Ansal Housing & Construction Ltd.

A U D I T O R S ’ R E P O R T O N C O R P O R A T E G O V E R N A N C E

For Khanna and Annadhanam

Chartered Accountants

Place: New Delhi (P.S. Pabreja)

Date: 30th June 2008 Partner

Membership no. 10692


Auditors' Report

1. We have audited the attached Balance Sheet of M/s Ansal

Housing & Construction Ltd. as at 31st March 2008 and

also the Profit and Loss Account and the Cash Flow

Statement for the year ended on that date annexed thereto.

These financial statements are the responsibility of the

Company’s management. Our responsibility is to express an

opinion on these financial statements based on our audit.

2. We conducted our audit in accordance with auditing

standards generally accepted in India. Those Standards

require that we plan and perform the audit to obtain

reasonable assurance about whether the financial

statements are free of material misstatement. An audit

includes examining, on a test basis, evidences supporting

the amounts and disclosures in the financial statements. An

audit also includes assessing the accounting principles used

and significant estimates made by management as well as

evaluating the overall financial statement presentation. We

believe that our audit provides a reasonable basis for our

opinion.

3. As required by the Companies (Auditor’s Report) Order,

2003 as amended by (Amendment) Order, 2004 issued by

the Central Government of India in terms of sub-section

(4A) of section 227 of the Companies Act, 1956, we

enclose in the Annexure, a statement on the matters

specified in paragraphs 4 and 5 of the said order.

4. Further to our comments in the Annexure referred to in

paragraph 3 above, we report that :

a) We have obtained all the information and explanations

which to the best of our knowledge and belief were

necessary for the purpose of our audit.

b) In our opinion, proper books of account as required by

law have been kept by the Company so far as appears

from our examination of the books.

c) The Balance Sheet, Profit and Loss Account and Cash

Flow Statement dealt with by this report are in

agreement with the books of account.

d) In our opinion, the Balance Sheet, Profit and Loss

Account and Cash Flow Statement dealt with by this

report comply with accounting standards referred to in

sub section (3C) of Section 211 of the Companies Act,

1956.

e) On the basis of the written representations received

from the directors as on 31st March 2008 and taken on

record by the Board of Directors, we report that none of

the directors is disqualified as on 31st March 2008 from

being appointed as a director in terms of clause (g) of

sub-section (1) of section 274 of the Companies Act,

1956.

f) The accounts read with accounting policies and other

notes, in our opinion and to the best of our information

and according to the explanations given to us, give the

information required by the Companies Act, 1956, in

the manner so required and give true and fair view in

conformity with the accounting principles generally

accepted in India:

i) in the case of the Balance Sheet, of the state of

affairs of the Company as at 31st March 2008 and;

ii) in the case of the Profit and Loss Account, of the

profit for the year ended on that date.

iii) in the case of the cash flow statement, of the cash

flows for the year ended on that date.

For Khanna & Annadhanam


P. S. Pabreja

Place: New Delhi Partner

Date : 30th June,2008 Membership No. 10692


Annexure to the Auditor’s Report

1. a) The Company is maintaining proper records showingfull particulars including quantitative details andsituation of fixed assets.

b) As explained to us the fixed assets are physicallyverified by the management in a phased periodicalmanner, which in our opinion is reasonable, havingregard to the size of the Company and nature of itsassets. No material discrepancies were noticed onsuch physical verification.

c) The Company has not disposed off a substantial partof the fixed assets during the year and hence thegoing concern assumption is not affected.

2. a) The inventory has been physically verified during theyear by the management. In our opinion, thefrequency of verification is reasonable.

b) In our opinion and according to the explanationsgiven to us, the procedures of physical verification ofinventories followed by the management arereasonable and adequate in relation to the size of theCompany and the nature of its business.

c) The Company has maintained proper records ofinventory. As explained to us, there were no materialdiscrepancies noticed on physical verification ofinventory as compared to the book records.

3. a) The Company has granted unsecured interest freeloan to a wholly owned subsidiary. The maximumamount involved during the year was Rs.1036.28 lacsand year-end balance of loan was Rs.500 lacs.

b) The loan is interest free being given to a wholly ownedsubsidiary.

c) In respect of loan given to the wholly ownedsubsidiary there is no stipulation towards repayment.

d) The Company has not taken deposits from the partiescovered in the register maintained under section 301of the Companies Act.

4. In our opinion and according to the information andexplanations given to us, there is an adequate internalcontrol procedure commensurate with the size of theCompany and the nature of its business for purchase ofinventory and fixed assets and for sale of goods andservices. During the course of audit, we have neither come

across nor have been informed of any continuing failure tocorrect major weakness in the aforesaid internal controlprocedures.

5. a) According to information and explanation given to us,we are of the opinion that the transactions that needto be entered into the register in pursuance of section301 of the Companies Act, 1956 have been soentered.

b) In our opinion and according to the information andexplanations given to us, the transactions made inpursuance of contracts or arrangements entered intothe register in pursuance of section 301 of theCompanies Act, 1956 and exceeding the value of Rs.Five lacs in respect of each party during the year havebeen made at prices which are reasonable havingregard to the prevailing market prices at the relevanttime.

6. In our opinion and according to the information andexplanations given to us, the Company has complied withthe provisions of sections 58A and 58AA or any otherrelevant provisions of the Companies Act, 1956 and theCompanies Acceptance of Deposits Rules, 1975. Accordingto the information and explanations given to us, in thisregard, no order under the aforesaid sections has beenpassed by the Company Law Board or National CompanyLaw Tribunal or Reserve Bank of India or any Court or anyother Tribunal on the Company.

7. In our opinion the Company has an internal audit systemcommensurate with the size and nature of its business.

8. The Central Government of India has not prescribed themaintenance of cost records U/s 209 (1) (d) of theCompanies Act, 1956 for any of the products of theCompany.

9. a) According to the information and explanations givento us, and records of the Company examined by us, inour opinion, the Company is generally regular indepositing with appropriate authorities statutory duesincluding provident fund, investor education andprotection fund, employees state insurance, income-tax, sales tax, wealth tax, service tax, custom duty,excise duty, cess and other statutory dues, whereverapplicable.

(Referred to in Paragraph 3 Thereof)


b) According to the information and explanations givento us and the records of the Company examined by us,the disputed amounts payable in respect of income-

tax, sales tax, wealth tax, custom tax and exciseduty/cess not deposited with the appropriateauthorities are as follows:

10. The Company does not have any accumulated losses andhas not incurred cash losses during the financial yearcovered by our audit and the immediately precedingfinancial year.

11. According to the records of the Company examined by usand the information and explanations given to us, duringthe year there has been no delay in repayment of dueswithin the originally stipulated period or the extendedperiod to financial institutions.

12. According to the information and explanation given to us,the Company has not granted any loans and advances onthe basis of security by way of pledge of shares,debentures, and other securities.

13. The provisions of any special statute applicable to chitfund/ nidhi / mutual benefit fund / societies are notapplicable to the Company.

14. In our opinion, the Company is not a dealer or trader inshares, securities, debentures and other investments.

15. In our opinion and based on the information andexplanations given to us, the Company has not given anyguarantee for loans taken by others except for its whollyowned subsidiary from banks or financial institutionsduring the year.

16. According to the information and explanations given to usand the records examined by us, terms loans obtained forfinancing real estate projects, in our opinion, on an overallbasis, were used for the real estate projects.

17. On the basis of an overall examination of the Balance sheetof the Company, in our opinion and according to theinformation and explanations given to us, there are nofunds raised on short term basis which have been used forlong term investments.

18. The Company has made preferential allotment of sharesduring the year to parties and companies covered in theRegister maintained under section 301 of the CompaniesAct, 1956. In our opinion and according to theinformation and explanations given to us, the price atwhich shares have been issued to these parties is notprejudicial to the interest of the Company.

19. The Company has not issued any debentures during theyear.

20. The Company has not raised any money by public issueduring the year.

21. According to the information and explanations given to us,during the year, no fraud on or by the Company has beennoticed or reported during the course of our audit.

For Khanna & AnnadhanamChartered Accountants

P. S. PabrejaPlace: New Delhi PartnerDate : 30th June,2008 Membership No. 10692

Nature of dues Amount Period to which Forum where(Rs. In lacs) the amount relates dispute is pending

Income Tax Assessment year 181.41 2000-01 ITAT, Delhi Bench, New Delhi176.35 2001-02 ITAT, Delhi Bench, New Delhi178.61 2004-05 CIT(A)-I, New Delhi144.87 2005-06 CIT(A)-I, New Delhi

Wealth Tax 0.49 Assessment Year 2004-05 CWT (Appeals)-I, New Delhi0.64 Assessment Year 2005-06 CWT (Appeals)-I, New Delhi

Sales Tax 12.38 Assessment Years 2003-04 Dy Commissioner, Sales Tax, Ghaziabad.31.50 and 2004-05


Balance Sheet As at 31st March 2008

(Amount in Rupees)

Schedule As at 31st March 2008 As at 31st March 2007

SOURCES OF FUNDSShareholders' FundsShare Capital 1 17,66,40,320 16,80,27,320 Amount received against Convertible Warrants 8,69,39,960 -- Reserves and Surplus 2 2,04,18,37,341 1,35,76,26,493

2,30,54,17,621 1,52,56,53,813 Loan FundsSecured Loans 3 2,16,69,89,212 97,00,95,158 Unsecured Loans 4 48,20,55,692 1,43,63,51,377

2,64,90,44,904 2,40,64,46,535 Deferred Tax Liability (Net) 10,02,98,991 3,75,25,578

5,05,47,61,516 3,96,96,25,926 APPLICATION OF FUNDSFixed Assets 5Gross Block 38,67,46,937 32,37,04,816 Less : Depreciation 12,87,45,482 11,54,96,701 Net Block 25,80,01,455 20,82,08,115 Investments 6 25,20,96,354 39,54,79,666 Current Assets, Loans and Advances 7Inventories 3,35,21,49,415 1,73,52,08,884 Sundry Debtors 77,05,88,318 65,20,47,249 Cash and Bank Balances 28,81,92,421 13,63,79,480 Loans and Advances 1,89,51,48,584 2,03,75,43,306

6,30,60,78,738 4,56,11,78,919 Less: Current Liabilities & Provisions 8

Current Liabilities 1,70,15,13,686 1,14,97,53,617 Provisions 5,99,01,345 4,54,87,157

1,76,14,15,031 1,19,52,40,774 Net Current Assets 4,54,46,63,707 3,36,59,38,145

5,05,47,61,516 3,96,96,25,926Accounting Policies and Financial Notes 16

Schedules referred to above form an integral part of the Accounts

As per our Report of even date attached

For Khanna & Annadhanam Shri Kushagr Ansal Mohinder Bajaj

Chartered Accountants Wholetime Director V.P. & Company Secretary

P. S. Pabreja Shri S. L. Chopra Shri S.L. Kapur Sanjay Mehta

Partner Director Director Chief Financial Officer

Membership No. 10692

Place: New Delhi Shri Ashok Khanna Shri Pradeep Anand Tarun Kathuria

Date : 30th June, 2008 Director Director Addl.V.P. (Finance)


Profit and Loss Account For the year ended 31st March 2008

(Amount in Rupees)

Schedule Current Year Previous Year

INCOMESales and Other Income 10 2,51,77,54,264 2,01,46,37,526 Increase/(Decrease) in Stocks 11 39,25,361 (2,50,18,718)

2,52,16,79,625 1,98,96,18,808 EXPENDITURECost of Construction 12 1,24,90,81,734 1,05,80,15,008 Consumption of Food, Beverages etc. 13 2,06,95,864 1,49,06,913 Administrative Expenses 14 31,04,39,439 23,34,59,356 Interest Expenses 15 10,22,75,593 8,39,50,411 Depreciation 1,41,91,171 87,39,992

1,69,66,83,801 1,39,90,71,680 Profit before Tax 82,49,95,824 59,05,47,128 Less : Provision for Taxation- Current Tax 20,59,00,000 12,85,00,000 - Deferred Tax 6,27,73,414 2,42,40,705 - Fringe Benefit Tax 27,15,000 27,13,88,414 21,80,000 15,49,20,705 Profit after Tax before Prior Period Items 55,36,07,410 43,56,26,423 Less : Prior Period Items- Tax Provisions for Earlier Years -- 81,70,781 - Prior Period Expenses -- -- Profit after Tax and Prior Period Items 55,36,07,410 42,74,55,642 Add : Balance Brought Forward 73,43,93,729 39,21,26,883

1,28,80,01,139 81,95,82,525 APPROPRIATIONSProposed Dividend 3,51,41,688 3,00,77,179 Dividend Tax 59,72,330 51,11,617 Transfer to General Reserve 30,00,00,000 5,00,00,000

34,11,14,018 8,51,88,796 Balance Carried to Balance Sheet 94,68,87,121 73,43,93,729 Basic and Diluted Earning per share (Rs.) 33.09 28.39Accounting Policies and Financial Notes 16

Schedules referred to above form an integral part of the Accounts










Schedules forming part of the Balance Sheet As at 31st March 2008

(Amount in Rupees)

As at 31st March 2008 As at 31st March 2007

Authorised4,49,90,000 (Previous year 1,99,90,000)

Equity Shares of Rs.10/- each 44,99,00,000 19,99,00,000 5,01,000 Redeemable Cumulative Preference

Shares of Rs.100/-each 5,01,00,000 5,01,00,000 50,00,00,000 25,00,00,000

Issued, Subscribed and Paid up1,75,70,844 (Previous year 1,67,09,544) Equity Shares

of Rs.10/- each fully paid for cash. 17,57,08,440 16,70,95,440 Add : Forfeited Shares 9,31,880 9,31,880

17,66,40,320 16,80,27,320 17,66,40,320 16,80,27,320

Notes :1 On 12.01.2008, the Company allotted 17,00,000 warrants of Rs. 208/- each to Promoters. Each warrant is convertible at a

premium of Rs. 198/- per share of face value of Rs. 10/- each at the option of the holder within 18 months from date of allotment.On 19.02.2008, the Company allotted:19,50,000 warrants of Rs. 225/- each to Non-Promoters. Each warrant is convertible at a premium of Rs.215/- per share of facevalue of Rs. 10/- each at the option of the holder within 12 months from date of allotment. It also alloted 10,00,000 warrants ofRs. 225/- each to Promoters convertible at a premium of Rs. 215/- per share of face value of Rs. 10/- each at the option of theholder within 18 months from date of allotment.

2 On 31.03.2008, the Company allotted 7,11,300 equity shares on exercise of part option by conversion of warrants at apremium of Rs. 198/- per share of face value of Rs. 10/- each to Promoters out of 17,00,000 warrants issued to Promoters on12.01.2008. Further, the Company also allotted 1,50,000 equity shares to Non-Promoters on 19.02.2008 at a premium ofRs. 215/- per share.

SCHEDULE 1 SHARE CAPITAL

Revaluation ReserveAs per last Balance Sheet 7,39,80,499 7,56,50,443 Less : Transferred to Profit & Loss A/c 16,69,944 16,69,944

7,23,10,555 7,39,80,499 Securities Premium AccountAs per last Balance Sheet 41,04,09,730 24,35,89,730 Add : Received during the year on issue of shares 17,33,87,400 16,68,20,000

58,37,97,130 41,04,09,730 Less : Calls in arrears - -

58,37,97,130 41,04,09,730General ReserveAs per last Balance Sheet 13,88,42,535 8,88,42,535 Add : Transferred from Profit & Loss Account 30,00,00,000 5,00,00,000

43,88,42,535 13,88,42,535 Profit & Loss Account - Balance 94,68,87,121 73,43,93,729

2,04,18,37,341 1,35,76,26,493

SCHEDULE 2 RESERVES AND SURPLUS



(Amount in Rupees)


From Scheduled Banks*Term Loans** 33,91,62,985 11,85,12,748 Cash Credits 55,85,15,466 32,42,66,134

89,76,78,451 44,27,78,882 Add: Interest Accrued and due 1,91,329 89,78,69,780 1,15,496 44,28,94,378From Corporate Bodies***Term Loans** 1,26,79,94,326 52,68,50,188Add: Interest Accrued and due 11,25,106 1,26,91,19,432 3,50,592 52,72,00,780

2,16,69,89,212 97,00,95,158

* The loans from Scheduled Banks are secured by charge over stocks of materials, vehicles, unsold finished stock, constructionwork-in-progress, book-debts, Computers and Furniture-Fixtures, equitable mortgage of land under projects, Commercial flats,office premises of the Company, guaranteed by Chairman & Managing Director, Whole Time Director and also corporateguarantee of Associate/Subsidiary Companies.

** Due within one year Rs. 5989.91 Lacs (Previous year Rs.3726.35 lacs)

*** The loan from Corporate Bodies are secured by mortgage of unsold flats/lands, vehicles, projects receivable, the personalproperties of Chairman & Managing Director and his relatives, pledge of promoters equity shares and shares of Subsidiary andJoint Venture Company, assignment of rent receivables and guaranteed by Chairman & Managing Director.

SCHEDULE 3 SECURED LOANS

DebentureUnsecured Non Convertible Debenture - 1,00,00,00,000Deposits From Public 31,12,73,000 22,37,07,000 Term Loans *From Corporate Bodies 1,09,00,000 1,09,00,000 From Banks 15,98,44,720 20,00,00,000

17,07,44,720 21,09,00,000 Add: Interest Accrued and due 37,972 17,07,82,692 17,44,377 21,26,44,377

48,20,55,692 1,43,63,51,377

* Guaranteed by Chairman & Managing Director and corporate guarantee of Wholly owned subsidiary companies.* Due within one year Rs. 1250.25 lacs (Previous year Rs. 984.00 lacs)

SCHEDULE 4 UNSECURED LOANS



As at Additions Sales/ As at Upto For the Adjustments Total upto W D V W D V

1st April, during Adjustments 31st, March 31st, March year ended during 31st, March As on As on

2007 the year during 2008 2007 31st, March the year 2008 31st, March 31st, March

the year 2008 2008 2007

Plant & Machinery 6,20,62,050 1,21,99,268 -- 7,42,61,318 4,32,52,963 26,45,795 -- 4,58,98,758 2,83,62,560 1,88,09,087

Vehicles 4,99,41,266 1,99,32,427 48,52,407 6,50,21,286 1,01,21,289 50,91,388 28,27,042 1,23,85,635 5,26,35,651 3,98,19,977

Office Equipments 49,27,782 28,11,124 -- 77,38,906 16,97,833 5,24,544 -- 22,22,377 55,16,529 32,29,949

Furniture & Fixtures 1,86,62,095 53,75,012 -- 2,40,37,107 1,10,19,483 22,42,499 -- 1,32,61,982 1,07,75,125 76,42,612

Air Conditioners &

Refregerators 82,42,729 23,99,220 16,800 1,06,25,149 36,60,468 5,19,297 4,150 41,75,615 64,49,534 45,82,261

Office Premises 16,34,99,070 1,01,18,310 -- 17,36,17,380 3,58,87,043 27,69,664 -- 3,86,56,707 13,49,60,673 12,76,12,027

Computers 1,15,67,027 1,34,19,920 -- 2,49,86,947 73,35,046 15,58,317 -- 88,93,363 1,60,93,584 42,31,981

Kitchen Equipments 43,71,878 20,86,966 -- 64,58,844 25,22,576 7,28,468 -- 32,51,045 32,07,799 18,49,302

Total 32,32,73,897 6,83,42,247 48,69,207 38,67,46,937 11,54,96,701 1,60,79,973 28,31,192 12,87,45,482 25,80,01,455 20,77,77,196

Capital WIP 4,30,920 -- 4,30,920 -- -- -- -- -- -- 4,30,920

Grand Total 32,37,04,817 6,83,42,247 53,00,127 38,67,46,937 11,54,96,701 1,60,79,973 28,31,192 12,87,45,482 25,80,01,455 20,82,08,116

Previous Year 29,09,75,548 3,48,84,195 21,54,926 32,37,04,816 10,62,84,094 1,06,32,555 14,19,948 11,54,96,701 20,82,08,116

Notes

1. Office Premises were revalued on 31st March 1996 on the basis of approved valuer's report resulting in a net increase of Rs. 9,23,49,883/-.

PARTICULARS GROSS BLOCK DEPRECIATION BLOCK NET BLOCK

SCHEDULE 5 FIXED ASSETS

(Amount in Rupees)

Current Year (Rs.) Previous Year (Rs.)

2. Depreciation has been charged to : - Profit & Loss Account 1,41,91,172 87,39,992 - Projects In Progress Account 2,18,857 2,22,619 - Revaluation Reserve 16,69,944 16,69,944

Total 1,60,79,973 1,06,32,555

As at Additions Deletions As at1st April, during the during the 31st, March

2007 year year 2008

LONG TERM INVESTMENTS (AT COST)A. Trade Investments

Shares in CompaniesUnquoted- Wholly Owned Subsidiary Company(a) 100,98,100 (Previous year 68,48,100 ) Equity

Shares of Srilankan Rs. 10/- each fully paid inHousing and Construction Lanka Pvt. Ltd. 3,56,82,000 1,34,84,740 – 4,91,66,740

(b) 98,79,250 (Previous year 48,79,250) EquityShares of Rs. 10/- each fully paid in Geo ConnectLtd (Formerly known as Callnet India Ltd.)(See foot note -1) 4,89,71,689 5,00,00,000 – 9,89,71,689

(c) 4,35,000 (Previous year Nil) cumulativereedemble Preference Shares @10% ofRs. 100/- each fully paid in GEO Connect Ltd. – 4,35,00,000 – 4,35,00,000

(d) 10,000 (Previous year 10,000) Equity Shares ofRs. 10/- each fully paid in Wrangler Builders Pvt. Ltd 1,00,250 – – 1,00,250

SCHEDULE 6 INVESTMENTS

(Amount in Rupees)




2007 year year 2008

(e) 10,000 (Previous year 10,000) Equity Shares ofRs. 10/- each fully paid in Maestro Promoters Pvt. Ltd 1,00,250 – – 1,00,250

(f) 10,000 (Previous year 10,000) Equity Shares ofRs. 10/- each fully paid in Anjuman Buildcon Pvt. Ltd 1,00,000 – – 1,00,000

(g) 10,000 (Previous year 10,000) Equity Shares ofRs. 100/- each fully paid in A. R. Paradise Pvt. Ltd 10,02,500 – – 10,02,500

(h) 20,000 (Previous year 20,000) Equity Shares ofRs. 10/- each fully paid in Fenny Real Estates Pvt. Ltd 2,00,530 – – 2,00,530

(i) 49,200 (Previous year 49,200) Equity Shares ofRs. 10/- each fully paid in A.R.Infrastructure Pvt. Ltd. (at a premium of Rs.90/- per share) 49,32,300 – – 49,32,300

(j) 10,000 (Previous year 10,000) Equity Shares ofRs. 10/- each fully paid in Third Eye Media Pvt Ltd 1,00,000 – – 1,00,000

(k) 3,095 (Previous year Nil) Equity Shares ofRs. 100/- each fully paid in Avee Iron & Steel WorksPvt. Ltd. (at a premium of Rs. 300 per share) – 12,41,095 – 12,41,095

(l) 10,000 (Previous year Nil) Equity Shares of Rs. 10/- each fully paidin Sunrise Facility Management Pvt. Ltd – 1,00,000 – 1,00,000

- Others(a) 250 (Previous year 250) Equity Shares of Rs. 10/-

each fully paid in Sun City Hi-Tech Projects Pvt. Ltd 2,500 – – 2,500(b) 250 (Previous year 250) Equity Shares of

Rs. 10/- each fully paid in Sun City HiTechInfrastructure Pvt. Ltd 2,500 – – 2,500

B. Other InvestmentsShares in CompaniesUnquotedJoint Venture Company48,00,000 (Previous year 48,00,000) Equity Sharesof Rs. 10/- each fully paid in Capital Cars (P) Ltd.(See foot note - 2) 4,80,00,000 – – 4,80,00,000 Others100 (Previous year 100) Equity Shares ofRs. 10/- each fully paid in Infinet India Ltd. 1,000 – – 1,000 Quoted(a) Nil (Previous year 5,200) Equity Shares

of Rs. 10/- each purchased at a premiumof Rs.740.62 each in Century Textile & Ind Ltd. 39,03,241 – 39,03,241 –

(b) Nil (Previous year 5,300) Equity Sharesof Rs. 10/- each purchased at a premiumof Rs. 724.07 each in Jai Prakash Associates Ltd. 38,90,585 – 38,90,585 –

SCHEDULE 6 INVESTMENTS (Contd.)

(Amount in Rupees)




2007 year year 2008

(c) Nil (Previous year 3,800) Equity Shares of

Rs. 10/- each purchased at a premium of

Rs.639.03 each in Reliance Capital & Finance Ltd. 24,66,299 – 24,66,299 –

(d) Nil (Previous year 2,000) Equity Shares of


Rs.541.00 each in Subex Azure Ltd. 14,52,523 – 14,52,523 –

(e) Nil (Previous year 5,000) Equity Shares of


Rs.102.41 each in Steel Authority of India Ltd. 5,62,049 – 5,62,049 –

(f) Nil (Previous year 2,000) Equity Shares of


Rs.250.30 each in Orchid Chemicals Ltd. 5,20,703 – 5,20,703 –

(g) Nil (Previous year Nil) Reliance Industries Ltd

(1200 Shares of Rs. 10/- each purchased at a

premium of Rs.2,408.47 each, acquired and

sold during the year) – 29,02,168 29,02,168 –

(h) Nil (Previous year Nil) Reliance Petrolium Ltd

(15,000 Shares of Rs.10/- each purchased at

a premium of Rs.122.48 each, acquired and


(i) Nil (Previous year Nil) Industrial Finance

Corporation of India Ltd (25,000 Shares of


Rs. 39.35 each, acquired and sold during the year) – 12,33,729 12,33,729 –

(j) Nil (Previous year Nil) Ispat Industries Ltd. (25,000

Shares of Rs. 10/- each purchased at a premium of

Rs.24.53 each, acquired and sold during the year) – 8,63,191 8,63,191 –

(k) Nil (Previous year Nil) Neyveli Legnite Corporation

Ltd (10,000 Shares of Rs. 10/- each purchased

at a premium of Rs.108.24 each, acquired

and sold during the year) – 11,82,415 11,82,415 –

(l) Nil (Previous year Nil) Bharat Heavy Electrical Ltd

(2,000 Shares of Rs. 10/- each purchased at a

premium of Rs.2,133.80 each, acquired

and sold during the year) – 42,87,596 42,87,596 –

(m) Nil (Previous year Nil) Jai Prakash Associates Ltd


premium of Rs.330.24 each, acquired and



(Amount in Rupees)




2007 year year 2008

- Units in Mutual Fund - Quoted

(a) 7,500 (Previous year 7500) Master Gain Units of

Rs. 10/- each fully paid of Unit Trust of India. 75,000 – – 75,000

(b) 1,00,000 (Previous year 1,00,000) Units of

Rs. 10/- each fully paid of Canara Robeco

Infrastructure Fund Dividend (formerly known

as NIFD CanInfrasturture Dividend Fund) 10,00,000 – – 10,00,000

(c) 48,899.76 (Previous year 48,899.76) Units of

Rs. 10.225 each fully paid of Principal

Infrastructure & Services Industries Fund 5,00,000 – – 5,00,000

(d) 100000 (Previous year 100000) Units of

Rs.10 each fully paid of Canara Robeco

Multicap Fund -Growth (formerly known

as CanMulticap-Growth Fund) 10,00,000 – – 10,00,000

(e) 1,00,000 (Previous year Nil) Units of Rs.10 each

fully paid of Reliance Fixed Horizen Fund – 10,00,000 – 10,00,000

(f) 1,00,000 (Previous year Nil) Units of Rs.10 each

fully paid of Principal PNB Long Term Equity

Fund 3 Years Series - II Growth – 10,00,000 – 10,00,000

C. Short Term Investments (At Cost)

Quoted

Units in Mutual Fund

(a) Nil (Previous year 1,90,91,374.737) Units at

Rs.10 each of UTI Liquid Cash (See foot note-3) 19,09,13,747 – 19,09,13,747 –

(b) Nil (Previous year 36,76,038.113) Units at

Rs.13.6016 each of LIC MF Liquid Fund 5,00,00,000 – 5,00,00,000 –

39,54,79,666 12,34,62,535 26,68,45,847 25,20,96,354

CURRENT YEAR PREVIOUS YEAR

Rs. Rs.

Aggregated cost of quoted shares/units 45,75,000 25,62,84,147

Aggregated cost of unquoted shares/units 24,75,21,354 13,91,95,519

Market Value of quoted shares/units 54,31,538 25,85,53,181

1 Pledged 50,38,430/- shares of Rs. 10/ each

with SICOM Ltd as security for Term Loan. 5,03,84,300 –

2 Pledged with Housing Development & Finance

Corporation Ltd. as security for Term Loan. 3,00,00,000 3,00,00,000

3 Pledged with DSP Meril Lynch Ltd. as

security for Term Loan. – 19,09,13,747


(Amount in Rupees)



(Amount in Rupees)


A. CURRENT ASSETSInventories (As valued & Certified by the Management)- Building Materials, Restaurant's Provisions,

Beverages etc. & Stores 7,33,84,375 3,86,27,487 - Flats, Houses & Farm Land 5,12,92,627 4,73,67,267 - Land - (Refer Financial Note No. 3) 61,69,16,593 51,34,33,567 - Projects-in-progress 2,61,05,55,820 1,13,57,80,563

3,35,21,49,415 1,73,52,08,884Note : For valuation of inventoriesrefer Accounting Policy No. 3

Sundry Debtors(Unsecured considered good)- Due for a period exceeding six months 8,26,77,898 5,11,46,351 - Others 68,79,10,420 60,09,00,898

77,05,88,318 65,20,47,249 Cash & Cheques in Hand(Including imprest with staff) 3,61,49,471 4,93,22,017 Bank BalancesWith Scheduled Banks:- In Current Account (Rs.22.18 lacs (Previous year

Rs. 14.55 lacs) earmarked for unclaimed Dividend) 20,55,40,697 3,32,02,993 - In Fixed Deposits (Rs.300.32 lacs (Previous year

Rs.126.34 lacs) pledged as margin moneyagainst Bank Guarantees/Letter of Credit/pledged with authorities) 4,36,15,686 5,26,77,200

- Interest accrued on Fixed Deposits 28,86,567 11,77,270 28,81,92,421 13,63,79,480

Total (A) 4,41,09,30,154 2,52,36,35,613B. LOANS & ADVANCES

(Unsecured Considered Good)Loans to wholly owned subsidiary Companies:- Housing & Construction Lanka (P) Ltd. – 1,34,84,740 - Geo Connect Ltd. 5,00,00,000 5,00,00,000 9,34,53,731 10,69,38,471 Housing Loan to Staff 20,89,856 9,77,166 Advances against Land/Projects :- Wholly Owned Subsidiaries

- Maestro Promoters Pvt. Ltd. 66,00,000 3,06,36,792 - Wrangler Builders Pvt. Ltd. 23,01,775 4,49,73,098 - Geo Connect Ltd. 2,95,73,444 6,21,41,562 - Anjuman Buildcon Pvt. Ltd. 23,49,98,834 30,03,03,468 - A R Infrastructure Pvt. Ltd. 2,71,05,901 2,58,51,430

SCHEDULE 7CURRENT ASSETS,LOANS & ADVANCES



(Amount in Rupees)


- A R Paradise Pvt. Ltd. 1,86,57,152 91,17,155 - Fenny Real Estates Pvt. Ltd 5,64,93,558 38,64,821 - Third Eye Media Pvt Ltd. – 1,00,000

- Others 1,42,65,18,752 1,80,22,49,416 1,29,63,33,943 1,77,33,22,269 Advances Tax Paid (Net of Provision):

Advance Income Tax/Tax Deducted at Source 39,24,18,694 29,50,68,380Less : Provision For Income Tax/Wealth Tax 49,27,30,076 (10,03,11,382) 28,42,15,076 1,08,53,304

Other Advances (recoverable in cash or in kindor for value to be received) 14,11,20,694 14,54,52,096

Total (B) 1,89,51,48,584 2,03,75,43,306 Total (A+B) 6,30,60,78,738 4,56,11,78,919

SCHEDULE 7CURRENT ASSETS,LOANS & ADVANCES (Contd.)

A. Current LiabilitiesSundry Creditors - Small Scale Industries 67,548 2,14,892

- Others 26,89,86,003 12,38,71,988 Advances from Customers 89,49,42,325 79,53,54,174 Liability towards Investors Education andProtection Fund U/s 205C of Companies Act, 1956*- Unclaimed Dividends 22,17,550 14,54,761 - Unclaimed Deposits 44,84,000 32,78,000 - Interest Accrued on Unclaimed Deposits 7,91,141 5,87,381

74,92,691 53,20,142 Security Deposits/Retention Money 5,40,65,481 4,06,77,311 Other Liabilities 46,26,81,182 14,47,08,882 Interest Accrued but not due 1,32,78,456 3,96,06,228 Total (A) 1,70,15,13,686 1,14,97,53,617

B. ProvisionsDividend 3,51,41,688 3,00,77,179 Dividend Tax 59,72,330 51,11,617 Superannuation,Leave Encashment & Gratuity 1,87,87,327 1,02,98,361 Total (B) 5,99,01,345 4,54,87,157 Total (A + B) 1,76,14,15,031 1,19,52,40,774 Due to Chairman & Managing Director andWhole time Director 68,61,288 1,27,363

* These figures reflect the position as at 31st March 2008. The actual amount to be transferred to the Investor Educationand Protection Fund in this respect shall be determined on the due date.

SCHEDULE 8 CURRENT LIABILITIES & PROVISIONS



Schedules forming part of the Profit and Loss Account For the year ended 31st March 2008

(Amount in Rupees)

(Amount in Rupees)


(to the extent not written off or adjusted)Deferred Revenue ExpenditureGross Value at Beginning of the Year 63,09,320 63,09,320 Add : Addition During the Year – –Gross Value at Closing of the Year (A) 63,09,320 63,09,320 Accumulated Amortisation at the Beginning of the Year 63,09,320 59,78,570 Amortisation During The Year – 3,30,750 Accumulated Amortisation at the End of the Year (B) 63,09,320 63,09,320 Net Carrying Amount at the End of the Year (A - B) – –

SCHEDULE 9 MISCELLANEOUS EXPENDITURE

Income from Operations- Real Estate Operations

Sale of Commercial/Residential Flats,Shops, Houses and Plots 2,28,71,38,784 1,84,61,22,989Interest From Customers 3,13,74,606 3,02,87,529Rent Received (Gross)* 7,07,14,137 3,14,89,720Administration Charges 2,18,61,732 2,60,55,295Forfeiture against cancellation 1,74,35,945 59,65,279

2,42,85,25,204 1,93,99,20,812 - Hospitality Operations

Sale of Food & Beverage (Note No.15) 6,48,23,549 4,86,99,879 Other Income Hospitality 53,11,858 36,91,356

7,01,35,407 5,23,91,235 Other Income

Profit on Sale of Fixed Assets 9,191 9,377 Profit on Sale of :- Long Term Investments 30,81,087 45,98,614- Current Investments 55,44,017 –

86,25,104 45,98,614 Income From Other Investments (Long Term)- Dividend 48,38,090 1,17,28,021

Interest (Gross)*- From Bank 35,39,779 28,51,171- From Others 4,47,417 15,42,932

39,87,196 43,94,103 Miscellaneous Income 16,34,072 15,95,364

2,51,77,54,264 2,01,46,37,526 * Tax Deducted at Source

- Interest 26,06,252 6,30,591 - Rent 1,58,42,749 1,37,90,824

SCHEDULE 10 SALES & OTHER INCOME

Current Year Previous Year



Opening Balance of Projects-in- Progress Account 1,13,57,80,563 1,15,23,59,205 Add : Expenses Incurred During the Year

Payments Against Land 1,23,40,17,755 37,04,88,014 Expenses Through Contractors 37,13,47,517 17,06,54,238 Materials/Stores Consumed 16,01,68,114 14,80,64,722 Plan Submission Fee 8,40,63,535 4,15,11,641 Brokerage and Commission 2,91,77,475 2,95,59,021 Advertisement and Publicity 5,91,10,583 2,97,95,338 Salary, Wages & Other Benefits 4,50,72,129 2,48,70,165 External Development Charges 32,82,77,670 7,04,74,918 Infrastructure Development Charges 6,42,89,308 Sundry Expenses 11,41,75,590 6,16,77,440 Interest on Loan 22,39,50,552 8,20,91,514 Lease Rent 1,15,057 39,97,561 Repair and Maintenance - Plant and Machinery 4,51,026 10,15,099 Depreciation 2,18,857 2,22,619 Architect Fees 1,12,50,220 88,12,116

3,86,14,65,951 2,19,55,93,611 Less : Miscellaneous Income 18,28,397 17,98,040

Closing Balance of Project-in- Progress Account 2,61,05,55,820 2,61,23,84,217 1,13,57,80,563 1,13,75,78,603 Cost of Construction Charged to Profit & Loss A/c 1,24,90,81,734 1,05,80,15,008

SCHEDULE 12 COST OF CONSTRUCTION

(Amount in Rupees)


Stock as on 31.03.2008Commercial Flats, Shops, Houses, Plots, Farms etc. 5,12,92,627 4,73,67,267 Less: Stock as on 31.03.2007Commercial Flats, Shops, Houses, Plots, Farms etc. 4,73,67,266 39,25,361 7,23,85,985 (2,50,18,718)

39,25,361 (2,50,18,718)

SCHEDULE 11 INCREASE/DECREASE IN STOCKS

Opening Stock 17,15,141 17,36,223 Add: Purchases during the year 2,23,82,158 1,48,85,831 Less : Closing Stock 34,01,435 17,15,141

2,06,95,864 1,49,06,913

SCHEDULE 13 CONSUMPTION OF PROVISIONS, BEVERAGES, WINES & SMOKES (NOTE NO.15)



(Amount in Rupees)


Rent 4,83,23,054 49,25,416 Salaries, Wages, Commission and Other Benefits 13,03,50,687 8,10,47,327 Contribution to Provident and Other Funds 1,44,70,729 95,95,082 Repair and Maintenance- Plant and Machinery 4,84,346 3,10,367 - Building 3,46,595 1,25,779 - Others 64,78,653 20,49,491

73,09,594 24,85,637 Advertisement & Publicity 47,62,182 3,05,91,425 Bank Charges 1,12,16,086 53,75,193 Postage & Telephone 58,56,087 51,70,987 Printing & Stationary 57,45,907 69,18,132 Travelling & Conveyance 1,26,73,471 1,23,14,384 Insurance 15,73,997 17,80,609 Exchange Fluctuation Loss 21,039 12,034 Office Maintenance 91,78,145 98,37,329 Electricity 40,58,424 50,97,357 Payment to Auditors (Inclusive of Service Tax)- Audit Fee 4,49,800 3,36,720 - Fee for Limited Review & Consolidated A/c's 2,51,124 1,17,852 - For Certification 1,31,258 1,44,790 - Reimbursement of Expenses 2,680 984 - Tax Audit Fee 75,000 72,956 - For Other Services - -

9,09,862 6,73,302 Directors' Fees 13,60,000 9,65,000 Charity & Donations 86,602 4,000 Loss on Sale of Long Term Investments 13,22,401 68,83,160 Loss on Sale of Fixed Assets 6,23,126 3,44,159 Miscellaneous Expenses 1,45,03,513 98,00,343 Amounts Written Off 1,00,00,000 2,16,100 Consultation/Development Fee Written Off - 3,30,750 Franchise Management Fee 42,63,747 26,11,380 Professional Charges 1,50,44,822 3,09,90,572 Legal Fees 29,12,003 28,31,750 Debenture Issue Expenses - 11,224 Business Promotion 22,09,678 8,56,022 Wealth Tax - 250 Rates & Taxes 16,64,283 17,90,432

31,04,39,439 23,34,59,356

SCHEDULE 14 ADMINISTRATIVE EXPENSES

Interest on Public Deposits 3,03,94,881 1,72,40,601 Interest on Term Loans 15,05,62,762 5,30,69,612 Interest on Debenture 6,79,87,439 3,14,24,657 Interest Others 6,64,87,364 5,92,97,481 Finance Charges 1,07,93,699 50,09,574

32,62,26,145 16,60,41,925 Less: Interest Charged to Project in Progress 22,39,50,552 8,20,91,514

10,22,75,593 8,39,50,411

SCHEDULE 15 INTEREST EXPENSES


Schedules forming part of the Accounts

A. SIGNIFICANT ACCOUNTING POLICIES1. Accounting Convention

The Financial Statements are prepared under the historical cost convention and on the basis of going concern.

2. Revenue Recognitiona) For the Real Estate division the Company follows the percentage of completion method of accounting. As per this

method, the revenue is recognised in proportion to the actual cost incurred as against the total estimated cost of theproject under execution with the Company subject to actual cost being 30% or more of the estimated cost. As theproject progresses, estimated costs are revised based on current cost indices and other information available to theCompany. Expenses incurred on repairs and maintenance on completed projects are charged to the Profit & LossAccount.

b) Indirect costs (detailed in Schedule 13) are treated as 'Period Costs' and are charged to the Profit and Loss Accountin the year incurred.

c) Whereas all income and expenses are accounted for on accrual basis, Interest on delayed payments by customersagainst dues is taken on realisation owing to practical difficulties and uncertainties involved.

3. InventoriesInventories are valued as under :-a) Building Material, Stores, Spares parts etc. At cost using FIFO method.

b) Food, Beverage and related stores At lower of cost (using FIFO method) or net realisable value.

c) Completed Units (Unsold) At lower of cost or market value,

d) Project/Contracts work in progress At cost

e) Land At costCost of Completed units and project/ work in progress includes cost of land , construction/development cost andother related costs incurred.

4. Fixed AssetsFixed assets are stated at cost less accumulated depreciation. However, revalued assets are stated at revalued amount lessaccumulated depreciation.

5. DepreciationDepreciation is provided on 'Straight Line Method' on pro-rata basis at rates prescribed in Schedule-XIV to the CompaniesAct, 1956. Shuttering and Scaffolding are treated as part of Plant and Machinery and depreciated at the rate applicableto Plant & Machinery.

6. InvestmentsCurrent Investments are stated at lower of cost and market value. Long term investments are stated at cost. Decline invalue of long term investments is recognised if it is not temporary.

7. Retirement and Other Benefitsa) Contributions to the Provident Fund are charged to revenue each year.

b) Contributions under the superannuation plan are made to the fund administered and managed by the Life InsuranceCorporation of India and are charged to revenue each year.

c) Provision for Gratuity is made on the basis of contribution made to Life Insurance Corporation of India under the"Employees Group Gratuity-cum-Life Insurance Scheme".

d) Provision for leave encashment is made on the basis of actuarial valuation done at the year end.

SCHEDULE 16 ACCOUNTING POLICIES AND FINANCIAL NOTES



8. Borrowing CostThe borrowing costs which have direct nexus and are directly attributable to the construction of a qualifying asset arecharged to the cost of that asset and other interest costs are expensed as period costs.

9. Foreign Currency TransactionsTransactions in foreign currency are recorded at the exchange rate prevailing on the date of the transaction. All monetaryassets and liabilities are restated at the closing rate and resultant loss or gain is charged to Profit & Loss Account. Longterm investments are stated at exchange rate prevailing on the date of transaction.

10. Miscellaneous Expenditure Consultation/Development Fee paid to Franchiser for restaurants operation are amortised over a period of five years.

11. Segment ReportingRevenue and expenses have been identified to segments on the basis of their relationship to the operating activities ofthe segment. Revenue and expenses, which relate to the enterprise as a whole and are not allocable to segments on areasonable basis, have been included under "Unallocated expenditure net of unallocated income".

12. Taxes on IncomeProvision for current tax is made based on taxable income for the year. Deferred tax is recognised/provided on timingdifference between taxable income and accounting income subject to consideration of prudence.

13. ImpairmentAt each balance sheet date, the Company reviews the carrying amounts of its fixed assets to determine whether there isany indication that those assets suffered an impairment loss. If any such indication exists, the recoverable amount of theasset is estimated in order to determine the extent of impairment loss and necessary adjustments there against. Reversalof impairment loss is recognised as income in the Profit Loss Account.

B. FINANCIAL NOTES1. Contingent Liabilities

e) Estimated amount of contracts remaining to be executed on capital account (net of advances) and not provided forRs. 47.74 Lacs (previous year Rs. 20.04 Lacs).

f) i) The Assessing Officer vide order dated 28.02.2002 passed under section 158[BC( c )] of the Income Tax Act,1961, had levied tax / penal interest of Rs.207.23 lacs. The Commissioner of Income Tax (Appeals) has allowedpartial relief resulting in the demand being reduce to Rs.137.23 lacs. The Company has filed appeal before theIncome Tax Appellate Tribunal. Pending decision of the Tribunal, no provision for the demand has beenconsidered necessary.

ii) Other disputed income tax demand Rs.630.58 lacs (Previous Year 413.83 lacs).

The Company has been legally advised that it has a good case to succeed in income tax matters stated in (i) and(ii) above and hence no provision for additional tax liability that may arise on decision of appeals has been madeas the same cannot be estimated at this stage.

SCHEDULE 16 ACCOUNTING POLICIES AND FINANCIAL NOTES (Contd.)

(Rs. in lacs)

31.03.2008 31.03.2007

a) Guarantees given by the Company in favour of Banks/Financial Institutions on behalf of other companies 2500.00 0.00

b) Guarantees given by the Company in favour of Excise/ Custom Authorities on behalf of other companies 100.00 100.00

c) Other Claims against the Company not acknowledged as debts 96.52 104.17d) Claims by customers for refund of amount deposited / Interest 221.15 239.78



g) The Assessing Officer vide order dated 18.03.2008 passed under UP Sales Tax Act has levied additional sales tax ofRs. 31.50 lacs on sale of flats/ houses to customer on Installment basis for the year 2004-05. The Company hasmoved appeal before Jt. Commissioner, Commercial Tax, Ghaziabad against this order.

The Assessing Officer vide order dated 19.03.2008 passed under UP Sales Tax Act has levied additional sales tax ofRs. 20.37 lacs on sale of flats/ houses to customer on Installment basis for the year 2003-04. The Company hasmoved appeal before Tribunal, Commercial Tax, Ghaziabad against this order.

h) Uttar Pradesh Revenue Authorities have demanded Rs.574.64 lacs (Previous year Rs.574.64 lacs) towards deficiency inStamp Duty on allotment of land to the Company on leasehold basis by UP State Industrial Development CorporationLtd. Against these demands the Company has paid Rs.46.46 lacs under protest and the balance demand has beenstayed by the Hon'ble High Court / Board of Revenue. Pending decision, no provision has been considered necessary.

2. During the year, the Company has acquired 3095 Equity Shares (Total Share Capital: 9000 Equity Shares) of M/s Avee IronSteel Private Ltd. and further 3045 Equity Shares has been acquired by Maestro Promoters Pvt Ltd. The balance 2860Equity Shares were already acquired by Wrangler Builders Pvt. Ltd. in the year 2006-07.

The Maestro Promoters Pvt Ltd and Wrangler Builders Pvt. Ltd. were already subsidiaries of Ansal Housing & ConstructionLtd., hence M/s Avee Iron Steel Private Ltd. also becomes wholly owned subsidiary of the Company.

Further, the Company has acquired 100% share capital of M/s. Sunrise Facility Private Ltd. as a result of which thisCompany also becomes wholly owned subsidiary of the Company.

3. Inventory of Land includes Rs. 4541.56 lacs (Previous year Rs. 5125.88 lacs) being consideration paid for Company's shareof land which is in possession for development of Real Estate projects in terms of collaboration agreement with subsidiarycompanies.

4. Advances against Land / Projects to wholly owned subsidiaries aggregating to Rs. 3757.31 lacs (Previous year Rs. 9895.76lacs) represent cost of land to be acquired by the Company under collaboration / other arrangements on behalf of thesubsidiary companies.

5. Operating Lease:a) The Company has taken various residential / commercial premises under cancelable operating lease. These lease are

normally renewable on expiry.

b) The rental expenses in respect of operating leases is Rs. 483.23 Lacs (previous year Rs.49.25 Lacs).

b) Name of the parties where the amount is due for more than 30 daysM/s Zeta Industrial Corporation (P) Ltd.M/s Bhaskar Power Projects Pvt. Ltd.

6. Based on the information / documents available with the Company, Sundry Creditors include:


(Amount in Rupees)


a) Amounts due to small scale undertakings (total amount) 0.68 Lacs 2.15 Lacs

7. a) Details of Managerial Remuneration (Amount in Rupees)


Chairman & Managing Director(CMD) and Wholetime Director (WTD)Salary and Allowances 85,50,000 58,50,000 Commission 2,56,41,080 1,54,58,224 Perquisites and Benefits 1,98,019 23,07,647 Contribution to Provident, Gratuity and Superannuation Fund 12,60,460 9,16,413 Directors' Meeting Fee 13,60,000 9,65,000



b) Computation of Net Profit in accordance with section 198 of the Companies Act 1956 and Commission payableto Chairman & Managing Director and Wholetime Director (Amount in Rupees)


Profit before tax as perProfit & Loss Account 82,49,95,824 59,05,47,128 Add :Directors' remuneration 85,50,000 58,50,000Director's Commission 2,56,41,080 1,54,58,224Perquisites & Benefits 1,98,019 23,07,647 Contribution to Provident, Gratuityand Superannuation Fund 12,60,460 9,16,413 Loss on Sale of Investment 13,22,401 68,83,160 Directors' Meeting Fees 13,60,000 3,83,31,960 9,65,000 3,23,80,444

86,33,27,784 62,29,27,572 Less : Profit on Sale of Investment As Per Books 86,25,104 45,98,614 Profit on Sale of Fixed Assets - 86,25,104 - 45,98,614

85,47,02,680 61,83,28,958 Commission @ 3 % (Previous year @ 3%) 2,56,41,080 1,54,58,224


8. The disclosures of Employee Benefits as defined in Accounting Standard 15 are given below:Defined Benefit PlanThe employees' gratuity fund scheme managed by Trust is a defined benefit plan. The present value of the obligation isdetermined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period ofservice as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build upthe final obligation. The obligation for leave encashment is recognized in the same manner as gratuity.

Gratuity Leave Encashment(Funded) (Unfunded)

2007-08 2007-08 2006-07

- Present Value of Obligation at beginning of the year 86,89,480 77,78,972 72,74,919 - Interest cost 6,51,711 5,83,423 5,45,619 - Current Service Cost 16,78,269 19,21,007 10,73,372 - Benefits Paid 5,53,337 18,21,945 46,22,289 - Actuarial (Gain)/Loss on obligations 39,71,407 31,11,234 35,07,351 - Present Value of Obligation at end of the year 1,44,37,530 1,15,72,691 77,78,972

I Reconciliation of opening and closing balances of Defined Benefit Obligation


Schedules forming part of the AccountsSCHEDULE 16 ACCOUNTING POLICIES AND FINANCIAL NOTES (Contd.)


As at 31st, As at 31st, As at 31st,March, 2008 March, 2008 March, 2007

III Reconciliation of fair value of assets and obligations

- Fair value of plan assets at end of the year 98,98,999 -- -- - Present Value of Obligation at end of the year 1,44,37,530 1,15,72,691 77,78,972 - Amount recognized in Balance Sheet 45,38,531 1,15,72,691 77,78,972

Gratuity(Funded)2007-08

- Fair value of plan assets at beginning of the year 79,17,651 - Expected return on plan assets 8,02,452 - Contributions 17,32,233 - Benefits Paid 5,53,337- Actuarial Gain / (Loss) on Plan assets -- Fair value of plan assets at end of the year 98,98,999

II Reconciliation of opening and closing balances of fair value of plan assets


As at 31st, As at 31st, As at 31st,March, 2008 March, 2008 March, 2007

IV Expenses recognized in Profit & Loss Statement

- Current Service Cost 16,78,269 19,21,007 10,73,372 - Interest Cost 6,51,711 5,83,423 5,45,619 - Expected return on plan assets 8,02,452 - - - Net Actuarial (Gain)/Loss recognised in the year 39,71,407 31,11,234 35,07,351 - Expenses recognised in Profit & Loss Statement 54,98,935 56,15,664 51,26,342



Subsidiaries Key Relatives of Joint Total TotalManagement Key Venture /

Personnel Management AssociatesPersonnel

RemunerationMr. Deepak Ansal 235.56 235.56 199.41 Ms. Divya Ansal 25.64 25.64 13.44 Mr. Kushagr Ansal 120.94 120.94 45.91 Rent paidMs. Divya Ansal 10.14 10.14 10.14 Rent receivedCapital Cars Pvt. Ltd. 19.65 19.65 21.43 Ansal Clubs Ltd. 7.79 7.79 7.32 Dividend ReceivedCapital Cars Pvt. Ltd. 48.00 48.00 48.00Interest on Advance agst. BookingMr. Deepak Ansal 30.58 30.58 - Ms. Divya Ansal - - - Mr. Kushagr Ansal - - - Mr. Karun Ansal - - - M/s. Deepak Ansal (HUF) - - -

9. Related Party Disclosures

The following transactions were carried out with the related parties in the ordinary course of business

a) Details relating to parties referred to item no. 1 to 5 below. (Amount in Lacs)


Notes:1 The estimates of rate of escalation in salary considered in acturial valuation, take into account inflation, seniority,

promotion and other relevant factors including supply and demand in employment market. The aboveinformation is certified by the actuary.

2 The actuarial valuation of gratuity liability in the previous year is done in accordance with the pre-revisedAccounting Standard 15- Employee Benefits. Accordingly, comparative numbers of previous year have not beenfurnished.


2007-08 2007-08 2006-07

- Discount Rate (per annum) 8.0% 7.5% 7.5%- Salary Escalation (per annum) 5.0% 5.0% 5.0%

V Acturial Assumptions





Expenses Reimbursed toAnsal Clubs Ltd. 0.02 0.02 0.93 Capital Cars Pvt. Ltd. 1.18 1.18 1.37 Moon Light Electric Division 13.53 13.53 - Geo Connect Ltd. 77.73 77.73 0.97 Expenses Reimbursed fromCapital Cars Pvt. Ltd. 15.82 15.82 3.39 Geo Connect Ltd. 3.71 3.71 75.33 Ansal Clubs Ltd. 1.29 1.29 5.87 Chiranjiv Bharti School - - - Moon Light Electric Co. Pvt. Ltd. - - - Purchase of Fixed Assets fromCapital Cars Pvt. Ltd. 64.01 64.01 29.69 Investment made during the year M/s Geo Connect Ltd. 935.00 935.00 - M/s.Housing & ConstructionLanka Pvt. Ltd. 134.85 134.85 - M/s.Avee Iron & Steel Works Pvt. Ltd. 12.41 12.41 - M/s.Sunrise Facility ManagementPvt. Ltd. 1.00 1.00 - M/s Third Eye Media Pvt. Ltd. - 1.00 M/s A.R. Infrastructure Pvt. Ltd. - 49.32 M/s Fenny Real Estate Pvt. Ltd. - 2.01 M/s A.R. Paradise Pvt. Ltd. - 10.03 Advance ReceivedMr. Deepak Ansal 806.95 806.95 - Mr. Deepak Ansal (HUF) 3.00 3.00 - Ms. Divya Ansal 33.00 33.00 - Mr. Kushagr Ansal 41.25 41.25 - Mr. Karun Ansal 24.00 24.00 - Advance RepaymentMr. Deepak Ansal 769.13 769.13 - Ms. Divya Ansal 8.00 8.00 - Mr. Kushagr Ansal 11.31 11.31 - Mr. Karun Ansal 4.00 4.00 - M/s. Deepak Ansal (HUF) 3.00 3.00 - Advance paid toM/s.Geo Connect Ltd. 620.29 620.29 357.96 M/s.Anjuman Buildcon Pvt. Ltd. (3,445.53) (3,445.53) 2,568.46 M/s.Wrangler Builders Pvt. Ltd. 447.22 447.22 345.24 M/s.Maestro Promoters Pvt. Ltd. (1,905.96) (1,905.96) 689.07

a) Details relating to parties referred to item no. 1 to 5 below. (Contd.) (Amount in Lacs)






M/s Third Eye Media Pvt. Ltd. 1.40 1.40 768.75 M/s A.R. Infrastructure Pvt. Ltd. 43.62 43.62 - M/s Fenny Real Estate Pvt. Ltd. 400.70 400.70 38.65 M/s A.R. Paradise Pvt. Ltd. 96.93 96.93 715.58 Advance adjustedM/s.Geo Connect Ltd. 1,432.34 1,432.34 - M/s.Anjuman Buildcon Pvt. Ltd. 3,730.29 3,730.29 - M/s.Wrangler Builders Pvt. Ltd. 1,757.72 1,757.72 - M/s.Maestro Promoters Pvt. Ltd. 3,126.13 3,126.13 - M/s Third Eye Media Pvt. Ltd. 767.75 767.75 - M/s A.R. Infrastructure Pvt. Ltd. 31.08 31.08 - M/s Fenny Real Estate Pvt. Ltd. 937.68 937.68 - M/s A.R. Paradise Pvt. Ltd. 624.41 624.41 - Profit share under land collaborationM/s.Anjuman Buildcon Pvt. Ltd. 10.13 10.13 6.12 M/s.Wrangler Builders Pvt. Ltd. 8.86 8.86 5.63 M/s.Geo Connect Ltd. 8.90 8.90 - M/s Third Eye Media Pvt. Ltd. 2.40 2.40 - M/s.Maestro Promoters Pvt. Ltd. 22.48 22.48 3.67 M/s A.R. Infrastructure Pvt. Ltd. - - 5.19 M/s Fenny Real Estate Pvt. Ltd. 1.37 1.37 1.39 M/s A.R. Paradise Pvt. Ltd. 1.53 1.53 0.80 Advance Outstandingas on 31.03.08M/s.Geo Connect Ltd. 295.73 295.73 1,920.89 M/s.Anjuman Buildcon Pvt. Ltd. 2,349.99 2,349.99 3,295.52 M/s.Wrangler Builders Pvt. Ltd. 23.02 23.02 1,342.37 M/s.Maestro Promoters Pvt. Ltd. 66.00 66.00 1,555.48 M/s Third Eye Media Pvt. Ltd. - - 768.75 M/s A.R. Infrastructure Pvt. Ltd. 271.06 271.06 258.51 M/s Fenny Real Estate Pvt. Ltd. 564.94 564.94 38.65 M/s A.R. Paradise Pvt. Ltd. 186.57 186.57 715.58 Loan given Geo Connect Ltd. 500.00 500.00 - Loan repaid Geo Connect Ltd. 1,036.28 1,036.28 526.00Loan given outstandingas at 31.03.2008Geo Connect Ltd. 500.00 500.00 934.54








Investment made outstandingas at 31.03.2008Housing & ConstructionLanka Pvt. Ltd. 491.67 - 491.67 356.82 Geo Connect Ltd. 1,424.72 - 1,424.72 489.72 Infinet India Ltd. - 0.01 0.01 0.01 Sunrise Facility Management Pvt. Ltd. 1.00 1.00 - Avee Iron & Steel Works Pvt. Ltd. 12.41 12.41 - Wrangler Builders Pvt. Ltd. 1.00 - 1.00 1.00 Maestro Promoters Pvt. Ltd. 1.00 - 1.00 1.00 Anjuman Buildcon Pvt. Ltd. 1.00 - 1.00 1.00 Third Eye Media Pvt. Ltd. 1.00 - 1.00 1.00 A.R. Infrastructure Pvt. Ltd. 49.32 - 49.32 49.32 Fenny Real Estate Pvt. Ltd. 2.01 - 2.01 2.01 A.R. Paradise Pvt. Ltd. 10.03 - 10.03 10.03 Capital Cars Pvt. Ltd. - 480.00 480.00 480.00 Debtors Ansal Properties & Industries Ltd. 230.14 230.14 232.14 Outstanding in Current Account(Credit) as on 31.03.08Geo Connect Ltd. - - 101.75 Aevee Iron & Steel Works Pvt. Ltd. 455.88 455.88 - Ansal Buildwel Ltd. 45.84 45.84 45.84 Capital Cars Pvt. Ltd. 0.33 0.33 0.22 Mr. Deepak Ansal 37.82 37.82 0.88 Ms. Divya Ansal 25.00 25.00 0.12 Mr. Karun Ansal 20.00 20.00 - Mr. Kushagr Ansal 29.94 29.94 0.39 Ms. Megha Ansal 15.00 15.00 - Outstanding in Current Account(Debit) as on 31.03.08Chiranjiv Bharti School 28.68 28.68 21.86 Ansal Clubs Ltd. 26.49 26.49 51.66 Capital Cars Pvt. Ltd. - - - Guarantees & Collaterals Givenas on 31.03.08Geo Connect Ltd. 2,500.00 2,500.00 - Guarantees & Collaterals takenFrom as at 31.03.08Geo Connect Ltd. 905.50 905.50 - Meastro Promoters P.Ltd 1,000.00 1,000.00 -








Third Eye Media P. Ltd 905.50 905.50 -

Anjuman Buildcon P.Ltd 2,003.70 2,003.70 -

Wrangler Builders Pvt. Ltd. 1,098.20 1,098.20 -

Mr. Kushagra Ansal 1,750.00 1,750.00 -

Mr. Deepak Ansal 22,515.41 22,515.41 10,274.50

Amount Received against Booking

Mr. Deepak Ansal 600.00 600.00 -

M/s. Deepak Ansal (HUF) - - -

Ms. Divya Ansal - - -

Mr. Kushagr Ansal - - -

Mr. Karun Ansal - - -

M/s GEO Connect Ltd 2,531.25 - 2,531.25 -

Amount Refunded against Booking


M/s. Deepak Ansal (HUF) - - -

Ms. Divya Ansal - - -

Mr. Kushagr Ansal - - -

Mr. Karun Ansal - - -

Equity Shares Allotted

(including share premium)

Mr. Deepak Ansal 665.60 665.60 110.17

Ms. Divya Ansal - 52.87

Mr. Kushagr Ansal - 62.64

Mr. Karun Ansal - 58.35

M/s. Deepak Ansal (HUF) - 0.50

Sungrace Securities Services Pvt. Ltd. 376.48 376.48 53.07

Snow White Cable Network Pvt. Ltd. - 30.87

Glorious Properties Pvt. Ltd. 41.60 41.60 55.81

Global Consultants &

Designers Pvt. Ltd. 395.82 395.82 81.60

Akashdeep Portfolios Pvt. Ltd. - 12.82

Money Received against warrants

Mr. Deepak Ansal 621.54 621.54 99.16

Ms. Divya Ansal 22.50 22.50 47.58

Mr. Kushagr Ansal 22.50 22.50 56.38

Mr. Karun Ansal 22.50 22.50 52.52

M/s. Deepak Ansal (HUF) 22.50 22.50 0.45


Snow White Cable Network Pvt. Ltd. 22.50 22.50 27.79










Akashdeep Portfolios Pvt. Ltd. 22.50 22.50 11.54

Amount received against warrants

outstanding as on 31.03.08


Ms. Divya Ansal 59.97 59.97 -

Mr. Kushagr Ansal 66.92 66.92 -

Mr. Karun Ansal 63.84 63.84 -

M/s. Deepak Ansal (HUF) 22.85 22.85 -

Sungrace Securities Services Pvt. Ltd. 22.50 22.50 -

Snow White Cable Network Pvt. Ltd. 44.40 44.40 -

Glorious Properties Pvt. Ltd. 62.06 62.06 -


Designers Pvt. Ltd. 22.50 22.50 -

Akashdeep Portfolios Pvt. Ltd. 31.56 31.56 -

Deposits Paid to

Geo Connect Limited - 27.00

Aevee Iron & Steel Works Pvt. Ltd. 163.00 163.00 -

Moon Light Electric Co. Pvt. Ltd. - 57.78

Deposits Received from

Geo Connect Limited - - 123.82

Moon Light Electric Co. Pvt. Ltd. - -

Dividend Paid for the Year 2006-07

Mr. Deepak Ansal 26.72 26.72 19.78

Ms. Divya Ansal 12.82 12.82 9.49

Mr. Kushagr Ansal 15.19 15.19 11.24

Mr. Karun Ansal 14.14 14.14 10.47

M/s. Deepak Ansal (HUF) 0.12 0.12 0.09


Snow White Cable Network Pvt. Ltd. 7.49 7.49 5.55




Akashdeep Portfolios Pvt. Ltd. 3.11 3.11 2.30





b) Names of the related parties and description of relationship :1. Wholly Owned Subsidiaries M/s Geo Connect Ltd. (Formerly known as Callnet India Ltd.)

M/s Housing & Construction Lanka Pvt. Ltd.M/s Maestro Promoters Pvt. Ltd. M/s Wrangler Builders Pvt. Ltd.M/s Anjuman Buildcon Pvt. Ltd.M/s A R Infrastructure Pvt. Ltd.M/s A R Paradise Pvt. Ltd.M/s Fenny Real Estates Pvt. LtdM/s Third Eye Media Pvt Ltd.M/s Sunrise Facility Management Pvt. Ltd.M/s Aevee Iron & Steel Works Pvt. Ltd.

2. Key Management Personnel Mr. Deepak Ansal (Chairman & Managing Director)Mr. Kushagra Ansal (Wholetime Director)

3. Relatives of Key Management Personnel Mrs. Divya Ansal (wife of Mr. Deepak Ansal) (With whom transaction taken place during the year) Mr. Karun Ansal (son of Mr. Deepak Ansal)

Mr. Deepak Ansal (H.U.F.- Karta Mr. Deepak Ansal)Mrs. Megha Ansal (wife of Mr. Kushagra Ansal)

4. Joint Venture M/s Capital Cars Pvt. Ltd.

5. Associates5.1 Enterprise in which Key Management M/s Infinet India Ltd.

personnel having substantial interest M/s Akash Deep Portfolios Private Ltd.

5.2 Enterprises in which relative of KeyManagement personnel havingsubstantial interest M/s Ansal Properties & Industries Ltd.

M/s Ansal Buildwell Ltd. M/s Chiranjiv Bharti SchoolM/s Ansal Clubs Ltd.M/s Moonlight Electric Company Private Ltd. M/s Sungrace Security Services Private Ltd.M/s Snow White Cable Network Private Ltd.M/s Global Consultant & Designers Private Ltd.M/s Glorious Properties Private Ltd.


10. Disclosure of loans and advances in the nature of loans to Subsidiaries and Associates: (Rs. in Lacs)

Name of the Company Relation As at 31st, March 2008 Maximum Balance

M/s Geo Connect Limited Wholly owned Subsidiary Company 500.00 1,036.28(Interest free)



11. Deferred Tax Liability (Net)Detail of Deferred tax liability (Net) as on 31st, March, 2008 is as given below :

12. Particulars of Earning per share (Basic & Diluted)

(Rupees in Lacs)


a) Deferred Tax Assets Arising on account oftiming differences in :- Accrued Expenses allowable

on actual payments 49.70 36.53- Short Term Capital Loss - 49.70 7.99 44.51

b) Deferred Tax LiabilitiesArising on account of timing differences in:- Depreciation 197.73 163.71- Interest Capitalized on Borrwowing Cost 854.97 1,052.69 256.06 419.77Deferred Tax Liability (Net) (b - a) 1,002.99 375.26


Net Profit for the year after prior period items (Rs. in Lacs) (Numerator) 5,536.07 4,274.56Number of Equity shares at the beginning of the year 1,67,09,544 1,44,29,544Number of Equity shares at the year end 1,75,70,844 1,67,09,544Weighted Average number of equity shares outstanding during the year(Denominator) 1,67,28,701 1,50,57,434Nominal value of the equity share (Rs.) 10.00 10.00Basic & diluted earning per share (Rs.) 33.09 28.39

13. Disclosure in respect of Company's Joint Venture entity in India pursuant to Accounting Standard 27 ' Financial Reportingof Interests in Joint Ventures' issued by the Institute of Chartered Accountants of India.

Proportion of Proportion ofOwnership Ownership

interest interest As at 31st, As at 31st,

March, 2008 March, 2007

a) Name of the VentureCapital Cars Private Limited (incorporated in India) 40.00% 40.00%

b) The aggregate of Company's share in the above venture in : Rs in Lacs Rs in LacsAssetsNet Fixed Assets 1133.57 1034.74Net Current Assets 1895.40 1474.12Miscellaneous Expenditure to the extent not written off 63.82 6.14



Quantity Value (Rs.) Quantity Value (Rs.)

a) Consumption of Building Materials *Bricks (Nos) 10,57,380 29,30,948 14,09,839 39,04,899Cement (Bags) 69,189 1,29,73,904 67,658 1,54,04,962Steel (MT) 1,570 3,63,27,642 713 2,06,71,586Others** (Grit, Badarpur, Sand and Stores) - 10,79,35,620 - 10,80,83,275

* Quantities issued to Contractors on recoverable basis are not treated as consumption** Items being too many, quantitative details are not practicable.

14. Information pursuant to Part-II of Schedule-VI to the Companies Act,1956.


Disclosure in respect of Company's Joint Venture entity in India pursuant to Accounting Standard 27 ' Financial Reportingof Interests in Joint Ventures' issued by the Institute of Chartered Accountants of India. (Contd.)

Proportion of Proportion ofOwnership Ownership

interest interest As at 31st, As at 31st,

March, 2008 March, 2007

LiabilitiesShare Capital 480.00 480.00Loans Taken 2239.66 1708.02Deferred Tax Liability 35.22 41.14IncomeSale of Goods & Services 11057.33 14460.21Other Income 93.30 120.00Expenditure Cost of Sales 10273.58 13620.75Employees Costs 278.54 239.62Operating & other Expenses 333.84 357.34Interest & Finance Charges 111.02 86.77Depreciation 72.90 67.64Tax Expense 28.44 70.58Contingent Liabilities 3.38 2.28Capital Commitment - -



Quantity Value (Rs.) Quantity Value (Rs.)

b) Value of Imports calculated on C.I.F.Basis in respect of

- Project Material - -c) Earning in foreign currency through credit

cards as per bank certificates/advices 53,10,686 31,70,392 d) Expenditure in Foreign Currency

(charged to Profit & Loss account)- Travelling & Subscription 29,58,401 30,44,549 - Professional Fee 9,69,732 20,95,154

e) Other requirements are not applicable

Information pursuant to Part-II of Schedule-VI to the Companies Act,1956. (Contd.)


15. The Company has applied to the Ministry of Company Affairs for claiming exemption from giving details in respect ofpurchase, consumption, turnover, stock etc. of the hospitality division for the years ended 31st March 2008. Pendingapplication, we are disclosing following information which the Company was required to be disclose as per exemptionorder received last year:

(a) Income from Food and Beverage and Other Services for the year include income from Wine and Liquor Rs.180.63 lacs(Previous Year Rs.126.63 lacs) and Telephone and Telex Rs.Nil (Previous Year Nil) respectively.

(b) The break-up of consumption of Provisions, Beverages, Stores, Wines & Smokes are as follows :

16. Balance Sheet and Profit and Loss Account were approved by the Board of Directors on 30 June 2008. Since the Chairmanand Managing Director was out of India at that time, he has not signed the accounts.

17. Previous Year figures have been regrouped/rearranged wherever considered necessary, to make them comparable withCurrent Year's figures.


Provisions, Wine Total Provisions, Wine TotalBeverages, and Liquor Beverages, and Liquor

Stores Stores(excluding (excludingwine and wine and

liquor) and liquor) andSmokes Smokes

Opening Stock 14,41,106 2,74,034 17,15,140 12,30,997 5,05,226 17,36,223Add: Purchases 1,78,52,918 45,29,240 2,23,82,158 1,21,34,714 27,51,117 148,85,831

1,92,94,024 48,03,274 2,40,97,298 1,33,65,711 32,56,343 1,66,22,054Less: Closing Stock 27,78,170 6,23,265 34,01,435 14,41,106 2,74,034 17,15,140Consumption during the year 1,65,15,854 41,80,009 2,06,95,863 1,19,24,605 29,82,309 1,49,06,914

(Amount in Rupees)



Balance Sheet Abstract and Company's General Business Profile

I. Registration Details

Registration No. State Code

3 1 - 0 3 - 2 0 0 8Balance Sheet Date

II. Capital Raised during the year (Amount in Rupees)

Public Issue Right Issue

Bonus Issue Private Placement

N I L

N I L N I L

N I L

Source of Funds

Paid up Capital Reserve & Surplus

Secured Loans Unsecured Loans

1 7 6 6 4 0 3 2 0

2 1 6 6 9 8 9 2 1 2

Deferred Tax Liability(net)

1 0 0 2 9 8 9 9 1

4 8 2 0 5 5 6 9 2

2 0 4 1 8 3 7 3 4 1

IV. Performance of Company (Amount in Rs)

Turnover Total Expenditure

Profit/(Loss)before Tax

Profit/(Loss)after Tax

2 5 1 7 7 5 4 2 6 4

8 2 4 9 9 5 8 2 4

Earning per Share 3 3 . 0 9

5 5 3 6 0 7 4 1 0

Dividend Rate % 2 0 . 0 0 %

1 6 9 2 7 5 8 4 4 0

V. Generic names of Three Principal Products of the Company

Item Code No. (ITC Code) N.A.Product Description Real Estate Development/ Promotion &

Construction of High rise commercial & Residential Buildings.Hospitality Services including Food & Beverages.

Application of Funds

Net Fixed Assets Investment

Net Current Assets Misc. Expenditure

2 5 8 0 0 1 4 5 5

4 5 4 4 6 6 3 7 0 7 N I L

2 5 2 0 9 6 3 5 4

III. Position of Mobilisation and Deployment of Funds (Amount in Rupees)

Total Liabilities Total Assets5 0 5 4 7 6 1 5 1 6 5 0 5 4 7 6 1 5 1 6

1 6 8 2 1 5 5

Shri Kushagr Ansal Mohinder Bajaj

Wholetime Director V.P. & Company Secretary

Shri S. L. Chopra Shri S.L. Kapur Sanjay Mehta

Director Director Chief Financial Officer




Cash Flow Statement For the year ended 31st March 2008

(Amount in Rupees)


A. CASH FLOW FROM OPERATING ACTIVITIES

Net profit before Tax, Appropriations

and Extra-Ordinary items 82,49,95,824 59,05,47,128

Adjustment for :

Prior Period Expenditure - -

Loss on Sale of fixed assets 6,23,126 3,44,159

Depreciation 1,44,10,029 89,62,611

Wealth Tax Paid - -

Amount written off 1,00,00,000 2,16,100

Miscellaneous expenditure written off - 3,30,750

Interest & finance charges 10,22,75,593 8,39,50,411

Investment income (48,38,090) (1,17,28,021)

Profit on sale of Assets (9,191) (9,377)

Loss on sale of Investment 13,22,401 68,83,160

Profit on sale of Investment (86,25,104) 11,51,58,764 (45,98,614) 8,43,51,179

Operating profit before Working Capital changes 94,01,54,588 67,48,98,307

Adjustments for Working Capital changes

Increase/(Decrease) in Creditors & other Liabilities 58,44,04,258 (20,02,61,743)

Decrease/(Increase) in Inventories (1,61,69,40,531) 4,13,78,577

Decrease/(Increase) in Sundry Debtors (11,85,41,069) (23,87,15,362)

Decrease/(Increase) in Loans and Advances (3,57,08,435) (1,34,12,76,701) (1,73,88,75,229)

Deferred Revenue Expenses - (1,18,67,85,777) -

Cash generated from Operation (24,66,31,191) (1,06,39,76,922)

Direct Taxes Receipt/(Paid) (9,74,50,314) (16,39,85,388)

Net Cash From Operating Activities (34,40,81,505) (1,22,79,62,310)

B. CASH FLOW FROM INVESTING ACTIVITIES

Sale of Investments 27,41,48,550 66,18,04,207

Investment Income received 48,38,090 1,17,28,021

Loan to Subsidiary company 5,69,38,471 3,61,12,789

Sale of Fixed Assets 18,54,999 4,00,196

Purchase of Fixed assets (6,83,42,247) (3,48,84,194)

Purchase of Investment (12,34,62,535) (92,50,35,730)

Net Cash From Investing Activities 14,59,75,328 (24,98,74,711)


(Amount in Rupees)


C. CASH FLOW FROM FINANCING ACTIVITIES

Proceeds from issuance of Share Capital & Warrant 26,89,40,360 17,06,58,000

Net Proceeds from Short Term Borrowing (16,00,00,000) 17,48,30,161

Proceeds from Long Term Borrowing 1,68,63,36,435 1,59,93,96,000

Repayment of Long Term Borrowing (1,28,16,76,008) (32,96,64,880)

Interest & Finance Charges paid (12,92,55,663) (4,91,86,202)

Payment of Dividend/transferred to Investor

Education and Protection Fund (3,44,26,007) (2,39,46,892)

Net Cash used in Financing Activities 34,99,19,117 1,54,20,86,186

Net Increase in Cash And Cash Equivalents 15,18,12,941 6,42,49,166

Cash and Cash Equivalents (Opening Balance) 13,63,79,480 7,21,30,314

Cash and Cash Equivalents (Closing Balance) 28,81,92,421 13,63,79,480

Notes :a) Cash and cash equivalents include cash & cheques in hand and balance with Schedule Banks and amount tallies with the

amount disclosed in schedule 7 to the Balance Sheet.b) Previous Year figures have been regrouped/rearranged wherever considered necessary, to make them comparable with Current

Year's figures.









Cash Flow Statement (Contd.) For the year ended 31st March 2008


1 Name of Housing & Geo Maestro Wrangler A.R. Fenny Real A.R. Third Eye Anjuman Aevee Iron Sunrise Facility

subsidiary Companies Construction Connect Promoters Builders Paradise Estate Infrastructure Media Buildcon & Steel Works Management

Lanka Pvt. Ltd. Pvt. Ltd. Pvt. Ltd. Pvt. Ltd. Pvt. Ltd. Pvt. Ltd. Pvt. Ltd. Pvt. Ltd. Pvt. Ltd. Pvt. Ltd. Pvt. Ltd.

2 No. of Shares held in the

subsidiary Company by

Ansal Housing &

Construction Lrd.

As at 31.03.2008 6848100 4879250 10000 10000 10000 20000 49200 10000 10000 9000 10000

3 Face value of Shares Rs. 100/- Rs.10/- Rs.10/- Rs.10/- Rs.10/- Rs.10/- Rs.10/- Rs.10/- Rs.10/- Rs.100/- Rs.10/-

each each each each each each each each each each each

4 Percentage of holding in

the subsidiary Company 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%

5 Financial Year of the 31st 31st 31st 31st 31st 31st 31st 31st 31st 31st 31st

subsidiary ended on March, March, March, March, March, March, March, March, March, March, March,

2008 2008 2008 2008 2008 2008 2008 2008 2008 2008 2008

6 Net aggregate amount of

Profit/(Loss) of the subsidiary

so far as these concern

members of the Company

a) Dealt within the accounts

of the Company for the

period ended

31st March 2008

(i) For the Financial Year

of the subsidiary Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil

(ii) For the previous financial

years of the subsidiary

since this become

subsidiary of Ansal Housing

& Construction Ltd. Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil

b) Not dealt within the

accounts of the Company

for the period ended

31st March 2008

(i) For the Financial Year

of the subsidiary Rs. 1,12,341 254,31,486 1,399,719 523,246 59,258 69,919 (37,677) 160,696 623,332 (601,578) (24,102)

SLR 3,09,899

(ii) For the previous financia

years of the subsidiary

since this become Rs.

subsidiary of Ansal Housing (35,06,681) 291,26,034 1,39,255 3,30,265 44,214 1,11,823 3,05,280 (16,423) 3,08,025 Nil Nil

& Construction Ltd. SLR

(82,22,855)

Notes:

i) Currency converted into Indian Rupees at the Exchange rate, 1SLR =0.3714 INR

For and behalf of the Board of Directors

Place : New Delhi Kushagra AnsalDate : 30 June, 2008 Wholetime Director

Statement Pursuant to Section 212 of the Companies Act,1956 Relating toSubsidiary Companies


Statement Regarding Subsidiary Companies

Items Housing & Geo Maestro Wrangler A.R. Fenny Real A.R. Third Eye Anjuman Aevee Iron Sunrise Facility

Construction Connect Promoters Builders Paradise Estate Infrastructure Media Buildcon & Steel Works Management

Lanka Pvt. Ltd. Pvt. Ltd. Pvt. Ltd. Pvt. Ltd. Pvt. Ltd. Pvt. Ltd. Pvt. Ltd. Pvt. Ltd. Pvt. Ltd. Pvt. Ltd. Pvt. Ltd.

Funds Empoyed

Issued and Subscribed

Share Capital 491.67 1,422.93 1.00 1.00 10.00 2.00 4.92 1.00 1.00 9.00 1.00

Share Application Money - - - - - - - - 39.00 - -

Reserves - - 15.74 7.49 0.80 - 46.24 - 8.72 21.18 (0.37)

Liabilities

- Secured Loans - 2,500.00 - - - - - - - - -

- Unsecured Loans - 500.00 34.00 0.08 - - - 0.23 - 195.40 0.05

Total 491.67 4422.93 50.74 8.57 10.80 2.00 51.16 1.23 48.72 225.58 0.68

Application of Funds

Fixed Assets

- Net Block 10.24 271.27 - - - - 0.01 - - - -

Investments - - 12.21 11.58 - - - - - 0.02 -

Net Current Assets 299.21 2,965.83 38.53 (3.01) 10.56 2.42 51.06 2.11 48.25 225.56 0.61

Deffered Tax Asset ( Net) - 450.64 - - - - - - - - -

Miscellaneous Expenditure - - - - 0.24 0.03 0.09 - 0.47 - 0.07

Profit & Loss Account 182.21 735.19 - - - (0.44) - (0.89) - - -

Total 491.67 4422.93 50.74 8.57 10.80 2.00 51.16 1.23 48.72 225.58 0.68

Turnover 141.52 1701.01 22.95 8.87 1.53 1.37 0.04 2.40 10.57 - -

Profit/(Loss) before Taxation 1.12 300.95 22.50 8.54 0.89 1.05 (0.27) 2.18 9.73 (0.11) (0.24)

Provision for Taxation - (86.44) (8.50) (3.25) (0.30) (0.35) (0.11) (0.57) (3.50) - -

Profit/(Loss) after Taxation 1.12 214.51 14.00 5.29 0.59 0.70 (0.37) 1.61 6.23 (0.11) (0.24)

Proposed Dividend - - - - - - - - - - -

Notes:

i) Currency converted into Indian Rupees at the Exchange rate, 1SLR =0.3714 INR

ii) The above data in respect of the subsidiaries are as on 31st March 2008.

iii) The consolidated annual accounts of the subsidiary companies and the related detailed information will be made available to the holding and subsidiary company investors seeking

such information at any point of time. The consolidated annual accounts of the subsidiary companies will also be available for inspection in its head office and head office of the

subsidiary companies concerned.


Consolidated Auditor's Report

1. We have audited the attached consolidated Balance Sheet

of Ansal Housing & Construction Limited (AHCL), its

subsidiaries and joint venture as at 31st March 2008,

consolidated Profit & Loss Account and the consolidated

Cash Flow Statement for the year ended on that date.

2. These consolidated financial statements are the

responsibility of the Company’s management and have

been prepared by the management on the basis of separate

financial statements of the Parent Company, its Subsidiaries

and Joint Venture for the year ended 31st March 2008. Our

responsibility is to express an opinion on the consolidated

financial statements based on our audit.

3. We conducted our audit in accordance with auditing

standards generally accepted in India. Those Standards

require that we plan and perform the audit to obtain

reasonable assurance about whether the financial

statements are free of material misstatement. An audit also

includes assessing the accounting principles used and

significant estimates made by management, as well as

evaluating the overall financial statement presentation. We

believe that our audit and the reports of other auditors

provide a reasonable basis for our opinion.

4. We did not audit the financial statements of eleven

Subsidiaries – Geo Connect Limited, Anjuman Buildcon

Private Limited, Wrangler Builders Private Limited, Maestro

Promoters Private Limited, A.R. Paradise Private Limited,

Third Eye Media Private Limited, Fenny Real Estate Private

Limited, A.R. Infrastructure Private Limited, Housing &

Construction Lanka Private Limited, Aevee Iron & Steel Pvt.

Ltd., sunrise Facility management Private Limited and one

Joint Venture Company – Capital Cars Private Limited

whose financial statements reflect total assets of

Rs.14,536.63 lacs as at 31st March 2008 and total revenue

of Rs13,077.76 lacs for the year then ended and net cash

flows from operating activities of Rs.(3,471.61) lacs. These

financial statements have been audited by other auditors

whose reports have been furnished to us, and our opinion,

in so far as it relates to the amounts included in respect of

these subsidiaries and Joint Venture is based solely on the

reports of the other auditors.

5. We report that the consolidated financial statements have

been prepared by the Company in accordance with the

requirements of Accounting Standard 21- " Consolidated

Financial Statements" and Accounting Standard 27–

"Financial Reporting of Interests in Joint Ventures" issued by

the Central Government under Company Accounting

Standard Rules, on the basis of the separate financial

statements of the Company, its Subsidiary Companies and

Joint Venture included in the Consolidated Financial

Statements.

6. To the best of our information and according to the

explanations given to us and on consideration of the

separate audit reports on individual audited financial

statements of the Company and the aforesaid Subsidiaries

and Joint Venture Companies, in our opinion the attached

consolidated financial statements read with accounting

policies and notes thereon give a true and fair view in

conformity with the accounting principles generally

accepted in India :

(i) in the case of Consolidated Balance Sheet, of the state

of affairs of the Group as at 31st March 2008.

(ii) in the case of Consolidated Profit & Loss Account, of the

profit of the Group for the year ended on that date.

(iii) In the case of Consolidated Cash Flow Statement, of

consolidated cash flows of the Group, for the year

ended on that date.

For Khanna & Annadhanam


P. S. Pabreja

Place: New Delhi Partner

Date : 30th June,2008 Membership No. 10692

To the Board of Directors of the Ansal Housing & Construction Limited on the Consolidated Financial Statements of the Group.


Consolidated Balance Sheet As at 31st March 2008

(Amount in Rupees)

Schedule As at 31st March 2008 As at 31st March 2007

SOURCES OF FUNDSShareholders' FundsShare Capital 1 17,66,40,320 16,80,27,320Amount received against Convertible Warrants 8,69,39,960 - Reserves and Surplus 2 1,99,18,82,958 1,30,36,53,801

2,25,54,63,238 1,47,16,81,121 Share Application Money- Subsidiary 39,00,000 39,00,000 Loan FundsSecured Loans 3 2,60,62,88,650 1,08,88,97,240 Unsecured Loans 4 53,96,98,158 1,49,98,30,215

3,14,59,86,808 2,58,87,27,455 5,40,53,50,046 4,06,43,08,576

APPLICATION OF FUNDSFixed Assets 5Gross Block 70,00,02,393 61,81,05,376 Less : Depreciation 26,65,92,217 24,00,37,856 Net Block 43,34,10,176 37,80,67,520 Investments 6 45,83,000 25,74,48,147 Current Assets, Loans and Advances 7Inventories 3,53,51,04,533 1,89,15,25,519 Sundry Debtors 93,45,19,665 82,39,27,292 Cash and Bank Balances 32,32,51,488 21,16,12,534 Loans and Advances 1,89,94,13,781 1,91,66,06,537

6,69,22,89,467 4,84,36,71,882 Less: Current Liabilities & Provisions 8

Current Liabilities 1,60,44,73,302 1,37,57,80,849 Provisions 6,17,75,917 4,77,01,352

1,66,62,49,219 1,42,34,82,201 Net Current Assets 5,02,60,40,248 3,42,01,89,681 Deferred Tax Asset/(Liability) (Net) (5,52,35,221) 1,26,45,743 Group share in Joint Venture (34,95,337) (5,87,30,558) (41,13,802) 85,31,941 Miscellaneous Expenditure(to the extent not written off or adjusted) 9 47,180 71,287

5,40,53,50,046 4,06,43,08,576 Accounting Policies and Financial Notes 16

Schedules referred to above form an integral part of the Consolidated AccountsAs per our Report of even date attached

For Khanna & Annadhanam Shri Kushagr Ansal Mohinder BajajChartered Accountants Wholetime Director V.P. & Company Secretary

P. S. Pabreja Shri S. L. Chopra Shri S.L. Kapur Sanjay MehtaPartner Director Director Chief Financial OfficerMembership No. 10692

Place: New Delhi Shri Ashok Khanna Shri Pradeep Anand Tarun KathuriaDate : 30th June, 2008 Director Director Addl.V.P. (Finance)


Consolidated Profit and Loss Account For the year ended 31st March 2008

(Amount in Rupees)

Schedule Current Year Previous Year

INCOMESales & Other Income 10 3,77,85,70,486 3,63,56,18,081 Increase/(Decrease) in Stocks 11 9,16,86,743 (2,56,93,656)

3,87,02,57,229 3,60,99,24,425 EXPENDITURECost of Construction 12 1,25,21,81,697 1,06,63,76,876 Consumption of Food, Beverages etc. 13 2,06,95,864 1,49,06,913 Cost of Sales - Share of Joint Venture 1,11,51,18,948 1,36,14,00,101 Administrative Expenses 14 48,59,98,860 38,89,94,918 Interest Expenses 15 12,31,28,037 9,26,53,993 Depreciation 2,50,16,669 2,49,69,544 Group share in Joint Venture 72,89,668 67,63,890

3,23,06,337 3,17,33,434 Impairment Loss - 47,32,817

3,23,06,337 3,64,66,251 3,02,94,29,743 2,96,07,99,051

Profit before Tax 84,08,27,486 64,91,25,374 Less : Provision for Taxation- Current Tax 21,10,94,350 12,90,02,167 - Deferred Tax 6,78,80,965 3,90,67,889 - Fringe Benefit Tax 28,64,186 23,69,462

28,18,39,501 17,04,39,518 Group share in Joint Venture 28,24,780 28,46,64,281 70,88,542 17,75,28,060 Profit after Tax Before Prior Period Items 55,61,63,205 47,15,97,314 Less : Prior Period Items- Tax Adjustment for earlier years 5,83,582 81,70,781 - Prior Period Expenses- Group Share in Joint Venture 2,03,357 - - Prior Period Expenses (41,29,147) 1,73,838 Profit after Tax 55,95,05,413 46,32,52,694 Less : Amount Capitalised as Capital Reserve - - Profit after Tax , before Appropriations 55,95,05,413 46,32,52,694 Add : Balance Brought Forward - Group 65,05,79,618 28,14,66,755 Add : Balance Brought Forward -Group share in Joint Venture 3,33,84,611 2,52,49,338

1,24,34,69,642 76,99,68,787 APPROPRIATIONSProposed Dividend 3,51,41,688 3,00,77,179 Dividend Tax 59,72,330 51,11,617 Transfer to General Reserve 30,00,00,000 5,00,00,000 Dividend Tax - Group share in Joint Venture - 34,11,14,018 8,15,760 8,60,04,556 Balance Carried to Balance Sheet 90,23,55,624 68,39,64,231 Earnings per shareBasic and Diluted Earning per share (Rs.) 33.45 30.77 Accounting Policies and Financial Notes 16

Schedules referred to above form an integral part of the Consolidated AccountsAs per our Report of even date attached

For Khanna & Annadhanam Shri Kushagr Ansal Mohinder BajajChartered Accountants Wholetime Director V.P. & Company Secretary

P. S. Pabreja Shri S. L. Chopra Shri S.L. Kapur Sanjay MehtaPartner Director Director Chief Financial OfficerMembership No. 10692

Place: New Delhi Shri Ashok Khanna Shri Pradeep Anand Tarun KathuriaDate : 30th June, 2008 Director Director Addl.V.P. (Finance)


Schedules forming part of the Consolidated Balance Sheet As at 31st March 2008

(Amount in Rupees)


Authorised4,49,90,000 (Previous year 1,99,90,000)

Equity Shares of Rs.10/- each 44,99,00,000 19,99,00,000 5,01,000 Redeemable Cumulative Preference

Shares of Rs.100/-each 5,01,00,000 5,01,00,000 50,00,00,000 25,00,00,000

Issued, Subscribed and Paid up1,75,70,844 (Previous year 1,67,09,544) Equity Shares

of Rs.10/- each fully paid for cash. 17,57,08,440 16,70,95,440 Add : Forfeited Shares 9,31,880 9,31,880

17,66,40,320 16,80,27,320

Notes :1 On 12.01.2008, the Company allotted 17,00,000 warrants of Rs.208/- each to Promoters. Each warrant is convertible at a

premium of Rs.198/- per share of face value of Rs.10/- each at the option of the holder within 18 months from date of allotment.On 19.02.2008, the Company allotted:- 19,50,000 warrants of Rs.225/- each to Non-Promoters. Each warrant is convertible at a premium of Rs.215/- per share of facevalue of Rs.10/- each at the option of the holder within 12 months from date of allotment.It also alloted 10,00,000 warrants ofRs.225/- each to Promoters convertible at a premium of Rs.215/- per share of face value of Rs.10/- each at the option of the holderwithin 18 months from date of allotment.

2 On 31.03.2008, the Company allotted 7,11,300 equity shares on exercise of part option by conversion of warrants at a premiumof Rs. 198/- per share of face value of Rs.10/- each to Promoters out of 17,00,000 warrants issued to Promoters on 12.01.2008.Further, the Company also allotted 1,50,000 equity shares to Non-Promoters on 19.02.2008 at a premium of Rs. 215/- per share.

SCHEDULE 1 SHARE CAPITAL

Revaluation ReserveAs per last Balance Sheet 7,39,80,499 7,56,50,443 Less : Transferred to Profit & Loss A/c 16,69,944 16,69,944

7,23,10,555 7,39,80,499 Securities Premium AccountAs per last Balance Sheet 41,04,09,730 24,35,89,730 Add: Received during the year 17,33,87,400 16,68,20,000

58,37,97,130 41,04,09,730 Foreign Currency Translation ReserveAs per last Balance Sheet (35,43,194) (9,16,019)Add : Exchange differences arising during the year

on translation of financial statements of anon-integral foreign operation. (18,79,692) (54,22,886) (26,27,175) (35,43,194)

General ReserveAs per last Balance Sheet 13,88,42,535 8,88,42,535 Add : Transferred from Profit & Loss Account 30,00,00,000 5,00,00,000

43,88,42,535 13,88,42,535 Profit & Loss Account - Balance 86,87,65,795 65,05,79,621 Group share in Joint Venture 3,35,89,829 3,33,84,610

1,99,18,82,958 1,30,36,53,801

SCHEDULE 2 RESERVES AND SURPLUS



(Amount in Rupees)


From Scheduled Banks*Term Loans** 58,91,62,985 11,85,12,748 Cash Credits 55,85,15,466 32,42,66,134

1,14,76,78,451 44,27,78,882 Add: Interest Accrued and due (Since Paid) 1,91,329 1,15,496

1,14,78,69,780 44,28,94,378 Group share in Joint Venture @ 18,92,99,438 1,33,71,69,218 11,88,02,082 56,16,96,460 From Corporate Bodies***Term Loans** 1,26,79,94,326 52,68,50,188 Add: Interest Accrued and due 11,25,106 1,26,91,19,432 3,50,592 52,72,00,780

2,60,62,88,650 1,08,88,97,240

* The loans from Scheduled Banks are secured by charge over stocks of materials, vehicles, unsold finished stock, constructionwork-in-progress, book-debts, computers and furniture-fixtures, equitable mortgage of project land, Commercial flats, officepremises of the Company, guaranteed by Chairman & Managing Director and Wholetime Director and also corporateguarantee of Associate/Subsidiary Companies.

** Due within one year Rs. 5,989.91 Lacs (Previous year Rs.3,726.35 lacs)

*** The loan from Corporate Bodies are secured by mortgage of unsold flats/land, vehicles, project receivables, the personalproperties of Chairman & Managing Director and his relatives, pledge of promoters equity shares and shares of Subsidiary andJoint Venture Company, assignment of rent receivables and guaranteed by Chairman & Managing Director.

*** The loan from SICOM taken by Geo Connect Limited, one of subsidiary of Holding Company is secured by assignment of keyreceivables, mortgage of land of Holding Company, pledge of shares of this company held by Holding Company andguaranteed by Holding Company.

@ Share of loan in Joint Venture is secured by parri passu first charge on current assets and movable fixed assets and furthersecured by deposit of title deed of the building.

SCHEDULE 3 SECURED LOANS

Debenture *Unsecured Non Convertible debentures - 1,00,00,00,000 Deposits From Public 31,13,08,800 22,37,37,500 Term Loans **From Bank 15,98,44,720 20,97,18,338 From Corporate Bodies 3,38,40,000 1,26,30,000

19,36,84,720 22,23,48,338 Add: Interest Accrued and due 37,972 17,44,377

19,37,22,692 22,40,92,715 Group share in Joint Venture @ 3,46,66,666 22,83,89,358 5,20,00,000 27,60,92,715

53,96,98,158 1,49,98,30,215

* Guaranteed by Chairman & Managing Director and Corporate guarantee of wholly owned subsidiary companies.* Due within one year Rs. 1,250.25 lacs (Previous year Rs. 984.00 lacs)@ Guaranteed by Itochu Corporation, Japan, Joint Venturer

SCHEDULE 4 UNSECURED LOANS


As at Additions Sales/ As at Upto For the Adjustments Total upto W D V W D V

1st April, during Adjustments 31st, March 31st, March year ended during 31st, March As on As on

2007 the year during 2008 2007 31st, March the year 2008 31st, March 31st, March

the year 2008 2008 2007

Goodwill on

Consolidation 2,89,67,578 22,831 -- 2,89,90,409 -- -- -- -- 2,89,90,409 2,89,67,578

Plant & Machinery 7,26,73,519 1,22,45,513 17,244 8,49,01,788 4,60,01,007 31,67,953 6,405 4,91,62,555 3,57,39,233 2,66,72,512

Vehicles 5,01,07,803 2,01,79,419 48,59,482 6,54,27,740 1,01,64,182 51,03,655 28,28,833 1,24,39,004 5,29,88,736 3,99,43,621

Office Equipments 1,05,65,601 29,44,737 18,355 1,34,91,983 32,11,724 7,98,855 8,587 40,01,992 94,89,991 73,53,877

Furniture & Fixtures 3,03,88,107 55,96,090 11,064 3,59,73,133 1,51,86,773 29,70,739 4,112 1,81,53,400 1,78,19,733 1,52,01,334

Air Conditioners &

Refrigerators 2,04,55,295 23,99,220 16,800 2,28,37,715 67,15,452 11,07,726 4,150 78,19,028 1,50,18,687 1,37,39,843

Office Premises 16,34,99,070 1,01,18,310 -- 17,36,17,380 3,58,87,043 27,69,664 -- 3,86,56,707 13,49,60,673 12,76,12,027

Computers 9,91,83,435 1,35,33,770 29,92,000 10,97,25,205 7,78,66,421 1,02,82,951 29,88,000 8,51,61,372 2,45,63,833 2,13,17,014

Kitchen Equipments 43,71,878 20,86,968 -- 64,58,846 25,22,576 7,28,468 -- 32,51,044 32,07,802 18,49,302

Sub Total 48,02,12,286 6,91,26,858 79,14,945 54,14,24,199 19,75,55,178 2,69,30,011 58,40,087 ** 21,86,45,102 32,27,79,097 28,26,57,108

Capital Work in Progress 4,30,920 -- 4,30,920 - -- -- -- -- -- 430920

Total 48,06,43,206 6,91,26,858 83,45,865 54,14,24,199 19,75,55,178 2,69,30,011 58,40,087 21,86,45,102 32,27,79,097 28,30,88,028

Add : Group share

in Joint Venture 13,74,62,170 2,85,85,233 74,69,208 15,85,78,194 3,33,74,652 72,89,668 18,25,230 3,88,39,090 11,97,39,104 10,40,87,519

Total 61,81,05,376 9,77,12,091 1,58,15,073 70,00,02,393 23,09,29,830 3,42,19,679 76,65,317 25,74,84,192 44,25,18,201 38,71,75,547

Impairment loss -- -- -- -- 91,08,025 -- -- 91,08,025 (91,08,025) (91,08,025)

Grand Total 61,81,05,376 9,77,12,091 1,58,15,073 70,00,02,393 24,00,37,855 3,42,19,679 76,65,317 26,65,92,217 43,34,10,176 37,80,67,522

Previous Year 1,37,36,72,922 22,40,09,415 3,90,99,354 61,81,05,376 20,10,38,007 3,83,91,180 37,66,540 24,00,37,856 37,80,67,522

1. Office Premises were revalued on 31st March 1996 on the basis of approved valuer's report resulting in a net increase of Rs. 9,23,49,883/-.

PARTICULARS GROSS BLOCK DEPRECIATION BLOCK NET BLOCK

SCHEDULE 5 FIXED ASSETS

(Amount in Rupees)

Current Year (Rs.) Previous Year (Rs.)

2. Depreciation has been charged to :- Profit & Loss Account 3,23,06,337 3,64,66,251 - Projects in Progress Account 2,43,398 2,52,437 - Goodwill Account - 2,548 - Revaluation Reserve 16,69,944 16,69,944

Total 3,42,19,679 3,83,91,180


2007 year year 2008

LONG TERM INVESTMENTS (AT COST)A. Trade Investments

Shares in CompaniesOthers(a) 250 (Previous year 250) Equity Shares of Rs. 10/-

each fully paid in Sun City Hi-Tech Projects Pvt. Ltd 2,500 - - 2,500 (b) 250 (Previous year 250) Equity Shares of

Rs. 10/- each fully paid in Sun CityHi-Tech Infrastructure Pvt. Ltd 2,500 - - 2,500

SCHEDULE 6 INVESTMENTS

(Amount in Rupees)




2007 year year 2008

OTHER INVESTMENTSB. Shares in Companies

Unquoted(a) 100 (Previous year 100) Equity Shares of Rs. 10/-

each fully paid in Infinet India Ltd. 1,000 - - 1,000 (b) 2895 Equity Shares of Rs.100/- each fully paid

in Avee Iron & Steel Ltd (See Foot Note 1) 11,58,000 - 11,58,000 - (c) Other Investment - 2,000 - 2,000 Quoted(a) Nil (Previous year 5,200) Equity Shares of Rs. 10/-

each purchased at a premium of Rs.740.62 eachin Century Textile & Ind Ltd. 39,03,241 - 39,03,241 -

(b) Nil (Previous year 5,300) Equity Shares of Rs. 10/-each purchased at a premium of Rs.724.07 eachin Jai Prakash Associates Ltd. 38,90,585 - 38,90,585 -

(c) Nil (Previous year 3,800) Equity Shares of Rs. 10/- each purchased at a premium of Rs.639.03 eachin Reliance Capital & Finance Ltd. 24,66,299 - 24,66,299 -

(d) Nil (Previous year 2,000) Equity Shares of Rs. 10/-each purchased at a premium of Rs.716.26 eachin Subex Azure Ltd. 14,52,523 - 14,52,523 -

(e) Nil (Previous year 5,000) Equity Shares of Rs. 10/-each purchased at a premium of Rs.102.41 eachin Steel Authority of India Ltd. 5,62,049 - 5,62,049 -

(f) Nil (Previous year 2,000) Equity Shares of Rs. 10/-each purchased at a premium of Rs.250.35 eachin Orchid Chemicals Ltd. 5,20,703 - 5,20,703 -

(g) Nil (Previous year Nil) Reliance Industries Ltd.(1200 Shares of Rs. 10/- each purchased at a premium of Rs.2,408.47 each, acquiredand sold during the year) - 29,02,168 29,02,168 -

(h) Nil (Previous year Nil) Reliance Petrolium Ltd.(15,000 Shares of Rs.10/- each purchased ata premium of Rs.122.48 each, acquiredand sold during the year) - 19,87,130 19,87,130 -

(i) Nil (Previous year Nil) Industrial Finance Corporationof India Ltd (25,000 Shares of Rs. 10/- eachpurchased at a premium of Rs.39.35 each,acquired and sold during the year) - 12,33,729 12,33,729 -

(j) Nil (Previous year Nil) Ispat Industries Ltd.(25,000 Shares of Rs. 10/- each purchasedat a premium of Rs.24.53 each, acquiredand sold during the year) - 8,63,191 8,63,191 -


(Amount in Rupees)




2007 year year 2008

(k) Nil (Previous year Nil) Neyveli Legnite Corporation

Ltd (10,000 Shares of Rs. 10/- each purchased at

a premium of Rs.108.24 each, acquired and

sold during the year) - 11,82,415 11,82,415 -

(l) Nil (Previous year Nil) Bharat Heavy Electrical Ltd


premium of Rs.2,133.80 each, acquired

and sold during the year) - 42,87,596 42,87,596 -

(m) Nil (Previous year Nil) Jai Prakash Associates Ltd


premium of Rs.330.24 each, acquired

and sold during the year) - 6,80,472 6,80,472 -

Units in Mutual Fund - Quoted

(a) 7,500(Previous year 7500) Master Gain Units of

Rs. 10/- each fully paid of Unit Trust of India. 75,000 - - 75,000

(b) 1,00,000 (Previous year 1,00,000) Units of

Rs. 10/- each fully paid of Canara Robeco

Infrastructure Fund Dividend (formerly known

as NIFD CanInfrasturture Dividend Fund) 10,00,000 - - 10,00,000

(c) 48,899.76 (Previous year 48899.76) units of

Rs.10.225/- each fully paid of Principal

Infrastructure & Services Industrial Fund 5,00,000 - - 5,00,000

(d) 1,00,000 (Previous year 1,00,000) Units of

Rs.10 each fully paid of Canara Robeco

Multicap Fund -Growth (formerly known

as CanMulticap-Growth Fund) 10,00,000 - - 10,00,000

(e) 1,00,000 (Previous year Nil) Units of Rs.10 each

fully paid of Reliance Fixed Horizen Fund - 10,00,000 - 10,00,000

(f) 1,00,000 (Previous year Nil) Units of Rs.10 each

fully paid of Principal PNB Long Term Equity Fund

3 Years Series - II Growth - 10,00,000 - 10,00,000

SHORT TERM INVESTMENTS (AT COST)

Quoted

- units in Mutual Fund

(a) Nil (Previous year 19091374.737) Units at Rs.10 each

of UTI Liquid Cash (See Foot Note 2) 19,09,13,747 - 19,09,13,747 -


(Amount in Rupees)




2007 year year 2008

(b) Nil (Previous year 3676038.113) Units at

Rs.13.6016 each of LIC MF Liquid Fund 5,00,00,000 - 5,00,00,000 -

25,74,48,147 1,51,38,700 26,80,03,848 45,83,000

CURRENT YEAR PREVIOUS YEAR

Rs. Rs.

Aggregated cost of quoted shares/units 45,75,000 25,62,84,147

Aggregated cost of unquoted shares/units 8,000 11,64,000

Market Value of quoted shares/units 54,31,538 25,85,53,181

Foot Note:

1 Eliminated because Avee Iron & Steel Pvt. Ltd.

has become wholly owned subsidiary of holding

company during financial year 2007-08 - 11,58,000

2 Pledged with DSP Merrill Lynch Ltd.

as security for Term Loan. - 19,09,13,747


(Amount in Rupees)


A. CURRENT ASSETSInventories (As valued & Certified by the Management)Building Materials,Restaurant's Provisions,Beverages etc. & Stores 7,33,84,375 3,86,27,487 Flats, Houses & Farm Land 5,12,92,627 4,73,67,267 Land 63,07,86,789 59,79,80,115 Projects-in-progress 2,66,12,73,032 1,17,69,44,322

3,41,67,36,823 1,86,09,19,191 Group share in Joint Venture-Cars, Parts & Accessories 11,83,67,710 3,06,06,328

3,53,51,04,533 1,89,15,25,519Note : For valuation of inventories referAccounting Policy No. 5Sundry Debtors(Unsecured considered good)Due for a period exceeding six months 12,02,53,638 7,83,72,390 Others 73,34,56,135 61,34,63,059

85,37,09,773 69,18,35,449 Group share in Joint Venture 8,08,09,892 13,20,91,843

93,45,19,665 82,39,27,292

SCHEDULE 7CURRENT ASSETS,LOANS & ADVANCES



(Amount in Rupees)


Cash & Bank BalancesCash & Cheques in Hand (Including imprest with staff) 3,84,96,443 6,19,25,098 Group share in Joint venture 65,18,653 1,96,44,370

4,50,15,096 8,15,69,468 Bank BalancesWith Scheduled Banks:In Current Account (Rs 22.18 lacs (Previous YearRs.14.55 Lacs) earmarked for unclaimed Dividend) 22,24,17,396 5,52,76,165 In Fixed Deposits (Rs.300.32 lacs (Previous Year 4,46,90,686 5,37,52,200Rs. 126.34 Lacs) pledged as margin money againstBank Guarantees/Letter of Credit/pledged with authorities) Interest accrued on Fixed Deposits 30,17,463 12,95,004 With Non-Scheduled BanksCommercial Bank Srilanka (Current Account) 9,29,397 1,42,74,466

27,10,54,942 12,45,97,835 Group share in Joint Venture(Rs. 5.37 Lacs (Previous year Rs. 2.33 Lacs)pledged with Sales Tax authorities) 71,81,450 54,45,231

27,82,36,392 32,32,51,488 13,00,43,066 21,16,12,534 Total (A) 4,79,28,75,686 2,92,70,65,345 B. LOANS & ADVANCES (Unsecured Considered Good)

Housing Loans to Staff 20,89,856 9,77,166 Advances against Land/Projects 1,77,80,66,993 1,64,55,93,305 Other Advances recoverable in cash or inkind or for value to be received 21,47,31,759 25,25,26,682

1,99,48,88,608 1,89,90,97,153 Group share in Joint Venture 1,15,07,436 47,91,484

2,00,63,96,044 1,90,38,88,637 Advance Income Tax/Tax Deducted at Source 39,67,96,626 29,72,82,642 Less: Provision For Income Tax/Wealth Tax 50,37,63,615 (10,69,66,989) 28,46,73,126 1,26,09,516 Group share in Joint Venture advance tax 10,19,326 76,43,722 Group share in Joint Venture provision for tax 10,34,600 (15,274) 75,35,338 1,08,384

Total (B) 1,89,94,13,781 1,91,66,06,537 Total (A+B) 6,69,22,89,467 4,84,36,71,882

SCHEDULE 7CURRENT ASSETS,LOANS & ADVANCES (Contd.)



(Amount in Rupees)


A. Current LiabilitiesSundry Creditors - Small Scale Industries 67,548 2,14,892

- Others 28,45,56,507 20,11,24,174 Advances from Customers 66,26,73,627 80,58,75,027 Liability towards Investors Education andProtection Fund U/s 205C of Companies Act, 1956*- Unclaimed Dividends 22,17,550 14,54,761 - Unclaimed Deposits 44,84,000 32,78,000 - Interest Accrued on Unclaimed Deposits 7,91,141 5,87,381

74,92,691 53,20,142 Common Assets Replacement Fund 2,32,99,881 2,33,24,854 Security Deposits/Retention Money 11,84,84,199 10,04,35,075 Other Liabilities 46,02,89,749 16,06,37,633 Interest accrued but not due 1,32,78,456 3,96,06,228

1,57,01,42,658 1,33,65,38,025 Group share in Joint Venture 3,43,30,644 3,92,42,824 Total (A) 1,60,44,73,302 1,37,57,80,849

B. ProvisionsDividend 3,51,41,688 3,00,77,179 Dividend Tax 59,72,330 51,11,617 Superannuation,Leave Encashment & Gratuity 1,99,21,815 1,12,71,374

6,10,35,833 4,64,60,170 Group share in Joint Venture 7,40,084 12,41,182 Total (B) 6,17,75,917 4,77,01,352 Total (A + B) 1,66,62,49,219 1,42,34,82,201 Due to Chairman & Managing Director 72,19,434 3,43,203

These figures reflect the position as at 31st March 2008. The actual amount to be transferred to the Investor Education andProtection Fund in this respect shall be determined on the due date.

SCHEDULE 8 CURRENT LIABILITIES & PROVISIONS

Balance As Addition during Written off Balance As at 1.4.2007 the year During the at 31.3.2008

(to the extent not written off or adjusted)Deferred Revenue ExpenditureConsultation/Development Fee - - - - Preliminary Expenses 70,771 - 23,591 47,180 Deferred Revenue Expenditure - - Share in Joint Venture - Preliminary/Pre-Operative Exp. 516 - 516 - Balance Carried To Balance Sheet 71,287 - 24,107 47,180

SCHEDULE 9 MISCELLANEOUS EXPENDITURE



Schedules forming part of the Consolidated Profit and Loss AccountFor the year ended 31st March 2008

(Amount in Rupees)


Real Estate OperationsSale of Commercial/Residential Flats, ShopsHouses and Plots 2,27,92,43,465 1,85,91,78,738 Interest from Customers 3,13,74,606 3,02,87,529 Rent Received (Gross)* 6,99,28,297 3,06,32,440 Administration Charges 2,60,55,295 2,60,55,295 Other Income 1,32,42,382 2,41,98,44,045 59,65,279 1,95,21,19,281 Hospitality OperationsSale of Food & Beverages 6,48,23,549 4,86,99,879 Other Income 53,11,858 7,01,35,407 36,91,356 5,23,91,235 Maintenance Charges 15,01,74,931 14,96,84,318 Other IncomeProfit on Sale of Fixed Assets 9,191 9,377 Profit on Sale of :- Long Term Investments 30,81,087 45,98,614 - Current Investments 55,44,017 86,25,104 - 45,98,614 Income from Long Term Investments- Dividend 38,090 69,28,021 Excess Provision Written Back 38,810 -- From Banks 36,00,681 28,77,132 - From Others 4,49,632 40,50,313 15,42,932 44,20,064 - Miscellaneous Income 1,09,04,736 74,46,756

2,66,38,20,627 2,17,75,97,666 Group share in Joint Venture- Income from operations 1,10,86,32,566 1,44,69,80,882 - Other Income 61,17,293 1,11,47,49,859 1,10,39,533 1,45,80,20,415

3,77,85,70,486 3,63,56,18,081 * Tax Deducted at Source- Interest 26,06,252 6,30,591 - Rent 1,58,42,749 1,37,90,824

SCHEDULE 10 SALES & OTHER INCOME

Stocks as on 31.03.2008Flats,Shops,Houses,Plots,Farms etc. 5,12,92,627 4,73,67,267 Less: Stock as on 31.03.2007Flats,Shops,Houses,Plots,Farms etc. 4,73,67,266 39,25,361 7,23,85,985 (2,50,18,718)Group share in Joint Venture - Cars, Parts & Accessories 8,77,61,382 (6,74,938)

9,16,86,743 (2,56,93,656)

SCHEDULE 11 INCREASE/DECREASE IN STOCKS



(Amount in Rupees)


Opening Balance of Project-in- Progress Account 1,18,08,98,286 1,20,39,52,306 Add : Expenses Incurred During the Year

Payments Against Land 1,22,84,51,741 37,12,70,348 Expenses Through Contractors 38,61,15,632 17,06,54,238 Material/Stores Consumed 16,01,68,114 14,80,64,722 Plan Submission Fees 8,40,63,535 4,15,11,641 Brokerage And Commission 2,91,77,475 2,95,59,021 Advertisement And Publicity 5,91,10,583 2,97,95,338 Salary,Wages & Other Benefits 4,50,72,129 2,48,70,165 External Development Charges 32,82,77,670 7,04,74,918 Infrastructure Development Charges 6,42,89,308 - Sundry Expenses 11,58,26,071 6,28,50,575 Interest on Borrowings 22,39,50,552 8,20,91,514 Lease Rent 1,15,057 39,97,561 Repair and Maintenance - Plant and Machinery 4,51,026 10,15,099 Depreciation 2,43,398 2,22,619 Architects Fees 1,12,50,220 88,12,116

3,91,74,60,797 2,24,91,42,181 Less : Miscellaneous Income 18,28,397 17,98,040

Adjustment on account of revaluation ofclosing project-in-progress of 21,77,671 40,22,943 Closing Balance of Projects-in-Progress Account 2,66,12,73,032 2,66,52,79,100 1,17,69,44,322 1,18,27,65,305 Cost of Construction Charged toProfit & Loss Account 1,25,21,81,697 1,06,63,76,876

SCHEDULE 12 COST OF CONSTRUCTION

Opening Stock 17,15,141 17,36,223 Add:Purchases during the year 2,23,82,158 1,48,85,831 Less : Closing Stock 34,01,435 17,15,141

2,06,95,864 1,49,06,913

SCHEDULE 13 CONSUMPTION OF PROVISIONS, BEVERAGES, WINES & SMOKES

Rent 4,95,54,917 1,05,52,057 Salaries,Wages,Commission and Other Benefits 14,44,69,977 9,20,48,949 Contribution to Provident and Other Funds 1,54,33,825 1,05,56,633 Repair and Maintenance- Plant and Machinery 4,84,346 3,10,367 - Building 3,46,595 1,25,779 - Others 2,61,36,604 1,91,93,337

2,69,67,545 1,96,29,483

SCHEDULE 14 ADMINISTRATIVE EXPENSES



(Amount in Rupees)


Advertisement & Publicity 50,98,314 3,06,38,101 Bank Charges 1,13,99,442 56,52,514 Postage, Telephone & Telegrams 68,05,838 61,52,797 Printing & Stationary 60,91,902 73,17,767 Travelling & Conveyance 1,44,05,181 1,27,64,782 Insurance 16,11,298 18,40,119 Exchange Fluctuation Loss 21,039 12,034 Office Maintenance 14,46,819 99,68,598 Electricity, Water & Fuel Charges 7,60,32,035 5,37,41,752 Payment to Auditors (inclusive of service tax)- Audit Fee 6,74,738 4,44,190 - Fee For Limited Review 1,76,124 1,17,852 - For Certification 1,31,258 1,44,790 - Tax Audit Fee 75,000 72,956 - Reimbursement of Expenses 2,680 984

10,59,800 7,80,772 Directors' Fees 14,45,500 10,13,000 Charity & Donations 87,961 -- Loss on sale of Investments 13,22,401 68,83,160 Loss on Sale of Fixed Assets 6,23,126 3,44,322 Miscellaneous Expenses 1,58,70,089 1,08,48,619 Amounts Written Off 1,00,04,819 2,87,442 Consultation/Development Fee amortized 23,591 3,54,341 Franchise Management Fee 42,63,747 26,11,380 Professional Charges 1,60,85,399 3,17,96,187 Legal Fees 28,31,750 28,31,750 Security Guard Expenses 86,61,038 86,27,137 Business Promotion 25,10,765 8,66,951 Brokerage & Discount on Sales 2,04,579 2,20,795 Rates & Taxes 20,70,701 18,15,276

42,64,03,398 33,01,56,718 Group share in Joint Venture 5,95,95,462 5,88,38,200

48,59,98,860 38,89,94,918

SCHEDULE 14 ADMINISTRATIVE EXPENSES (Contd.)

- Interest on Public Deposits 3,03,94,881 1,72,40,601 - Interest on Debentures 6,79,87,439 3,14,24,657 - Interest on Term Loans 15,05,62,762 5,30,69,612 - Interest Others 7,62,37,490 5,93,24,163 - Finance Charges 1,07,93,699 50,09,574

33,59,76,271 16,60,68,607 Less Interest Charged to Project in Progress 22,39,50,552 8,20,91,514

11,20,25,719 8,39,77,093 Group share in Joint Venture 1,11,02,318 86,76,900

12,31,28,037 9,26,53,993

SCHEDULE 15 INTEREST EXPENSES


Schedules forming part of the Consolidated Accounts

A. SIGNIFICANT ACCOUNTING POLICIES1. Nature of Operations

Group's main business is Real Estate promotion and development in residential and commercial segments' distributor ofHonda Cars, running Restaurants and Estate Management Services.

2. Basis of AccountingThe Consolidated Financial Statements of Indian Companies have been prepared to comply in all material respects withthe mandatory accounting standards issued by the Institute of Chartered Accountants of India (ICAI) and the relevantprovisions of the Companies Act, 1956. The Financial statements have been prepared under the historical cost conventionon the basis of going concern and on an accrual basis except as stated otherwise.

3. Use of EstimatesThe preparation of the financial statements requires estimates/ assumptions to be made that affect the reported amountof Assets and Liabilities on the date of the financial statements and reported amount of revenues and expense during thereporting period. Difference between the actual results and estimates are recognised in the period in which the resultsare known/ materialised.

4. Revenue and Cost Recognition a) Indian Companies

i) For the Real Estate division, the parent company is following the percentage of completion method ofaccounting. As per this method, the revenue is recognised in proportion to the actual cost incurred as againstthe total estimated cost of the project under execution with the Parent Company subject to actual cost being30% or more of the estimated cost. As the project progress, estimated costs are revised based on current costindices and other information available to the Parent Company. Expenses incurred on repairs and maintenanceon completed projects are charged to profit & loss account.

ii) Indirect costs (detailed in Schedule 14) are treated as 'Period Costs' and are charged to the Profit and LossAccount in the year incurred.

iii) Whereas all income and expenses are accounted for on accrual basis, Interest on delayed payments fromcustomers against dues is taken on realisation owing to practical difficulties and uncertainties involved.

iv) In case of Joint Venture, revenue from sale of trading goods is accounted for on the basis of invoices raised,against confirmed orders, deliveries of which may, in some cases be effected at a later date. Sale value is exclusiveof Sales Tax.

b) Foreign SubsidiaryThe subsidiary in Srilanka follows "Completed Contract Method". Land cost and the stamp duty on sold plots of landhas been computed in proportion of sold area to total area. Improvement & construction cost of sold plots & houseshas been computed and estimated by the Company with reference to the costs already incurred and to be incurred.Brought forward general overheads cost are charged to the revenue over a period of five years. 'General constructionoverheads incurred after the year ended 31.03.2004 are charged to the revenue of the respective year.

5. Inventories Inventories are valued as under :-a) Building Material, Stores, Spares parts etc. At cost using FIFO method.b) Cars At lower of cost (using Specific Cost basis) or net realisable value.c) Food, Beverage and related stores At lower of cost (using FIFO method) or net realisable value.d) Completed Units (Unsold) At lower of cost or market value,e) Project/Contracts work in progress At cost

SCHEDULE 16 ACCOUNTING POLICIES AND FINANCIAL NOTES



f) Land At costg) Material issued for car repair jobs at year end At cost

Cost of Completed units and project/ work in progress includes cost of land , construction/development cost andother related costs incurred .

6. Fixed Assets Fixed assets other than revalued assets are stated at cost less accumulated depreciation. Revalued assets are stated atrevalued amount less accumulated depreciation. Adjustment arising from foreign exchange rate variation relating toborrowing attributable to fixed assets are capitalized.

7. Depreciationa) Indian Companies

Depreciation is provided on 'Straight Line Method' on pro-rata basis at rates prescribed in Schedule-XIV to theCompanies Act, 1956. Shuttering and Scaffolding are treated as part of Plant and Machinery and depreciated at therate applicable to Plant & Machinery. In case of Joint-venture depreciation on Leasehold Improvements is providedon pro-rata basis over the period of Lease.

b) Foreign SubsidiaryDepreciation is provided on the written down value at following rates per annum :-Motor Vehicle 10%Office Equipment 15%Furniture & Fittings 10%Site Equipment 15%No Depreciation is provided on the Property, Plant & Equipment for the year of purchase.

8. Investments Current Investments are stated at lower of cost and market value. Long term investment are stated at cost. Decline invalue of long term investments is recognized if it is not temporary.

9. Retirement and Other Benefitsa) Contribution to the Provident Fund are charged to revenue each year.

b) Contributions under the superannuation plan are made to the fund administered and managed by the Life InsuranceCorporation of India and are charged to revenue each year.

c) Provision for Gratuity is made on the basis of contribution made to Life Insurance Corporation of India under the"Employees Group Gratuity-cum-Life Insurance Scheme" for Parent Company and Joint Venture Entity and on thebasis of actuarial valuation for Indian Subsidiaries.

d) Provision for leave encashment is made on the basis of actuarial valuation done at year end for Indian Companies.

10. Borrowing CostThe borrowing costs which have direct nexus and are directly attributable to the construction of a qualifying asset arecharged to the cost of that asset and other interest cost are expensed as period costs.

11. Foreign Currency TransactionsTransactions in foreign currency are recorded at the exchange rate prevailing on the date of the transaction. All monetaryassets and liabilities are restated at the closing rate and resultant loss or gain is charged to profit & loss account. Longterm investments are stated at exchange rate prevailing on the date of transaction. In case of foreign subsidiary, all expenses and income are translated into Indian Rupees at the monthly average rates,Assets and Liabilities (other than shareholders' fund) are translated into Indian Rupees at the rate of exchange prevailingat Balance Sheet date and the resulting difference is accumulated to Foreign Currency Translation Reserve under "Reservesand Surplus".




12. Miscellaneous ExpenditureConsultation / Development fee paid to Franchiser for Restaurant operations, Preliminary expenses and other DeferredRevenue expenditure are amortized over a period of five years. However, preliminary expenses in case of Joint VentureEntity and two subsidiaries (viz. M/s Maestro Promoters Pvt Ltd and M/s Wrangler Builders Pvt Ltd.) are amortized over aperiod of ten years.

13. Segment ReportingRevenue and expenses have been identified to segments on the basis of their relationship to the operating activities ofthe segment. Revenue and expenses, which relate to the Group as a whole and are not allocable to segments on areasonable basis, have been included under "Unallocated Expenditure net of Unallocated Income."

14. Taxes on IncomeProvision for current tax is made based on taxable income for the year. Deferred tax is recognized/provided on timingdifference between taxable income and accounting income subject to consideration of prudence.

15. ImpairmentAt each balance sheet date, the Company reviews the carrying amounts of its fixed assets to determine whether there isany indication that those assets suffered an impairment loss. If any such indication exists, the recoverable amount of theasset is estimated in order to determine the extent of impairment loss and necessary adjustments there against. Reversalof impairment loss is recognized as income in the profit and loss account.

B. FINANCIAL NOTES1. Basis Of Preparation

a) The Consolidated Financial Statements have been prepared in accordance with Accounting Standard 21 (AS-21)-"Consolidated Financial Statements" and Accounting Standard 27 (AS-27)-"Financial Reporting of Interests in JointVentures" issued by the Central Government under Companies Accounting Standard Rules 2006. The consolidatedfinancial statements comprise the financial statements of Ansal Housing & Construction Limited (Parent Company)and its following subsidiaries and a Joint Venture Entity (collectively referred to as "the Group").


Name of the Company Country of Incorporation Ownership in %

Subsidiaries 2007-08 2006-07Geo Connect Limited (Formerlyknown as M/s Call Net India Ltd) India 100% 100%Maestro Promoters Pvt. Ltd. India 100% 100%Wrangler Builders Pvt. Ltd. India 100% 100%Anjuman Buildcon Pvt. Ltd. India 100% 100%Housing & Construction Lanka Pvt. Ltd Sri Lanka 100% 100%A. R. Infrastructure Pvt. Ltd. India 100% 100%Third Eye Media Pvt. Ltd. India 100% 100%Fenny Real Estate Pvt. Ltd. India 100% 100%A. R. Paradise Pvt. Ltd. India 100% 100%Aevee Iron & Steel Works Pvt. Ltd. India 100% 0%Sunrise Facility & Management Pvt. Ltd. India 100% 0%Joint VentureCapital Cars Pvt Limited India 40% 40%


Name of the Company Effect on Group Profit Effect on group Net Assetsafter capitalisation as at 31.03.2008

Decrease in Group Profit Increase in Group Net assets

(i) Aevee Iron & Steel Works Pvt. Ltd. (Subsidiary) (6.02) 225.56 (ii) Sunrise Facility Management. Pvt. Ltd. (Subsidiary) (0.24) 0.61


b) Figures relating to Subsidiary Companies have been reclassified wherever necessary to bring them in line with the ParentCompany's financial statements.

c) The Consolidated Financial Statements of the Group have been prepared based on a line by line consolidation of thefinancial statements of Parent Company, its subsidiaries and proportionate interest in Joint Venture Entity by addingtogether like items of assets, liabilities, income and expenses after fully eliminating intra-group balances and intra-grouptransactions resulting in unrealized profit or loss.

d) The financial statements of Parent Company, its Subsidiaries and Joint Venture Entity have been drawn for the sameperiod and upto same date i.e. 31st March 2008

2. The effect of acquisition and disposal of the subsidiaries/joint-venture during the year on the consolidated financialstatements is as under:

e) Estimated amount of contracts remaining to be executed on capital account (net of advances) and not provided forRs. 47.74 Lacs (previous year Rs. 20.04).

f) i) The Assessing Officer vide order dated 28.02.2002 passed under section 158[BC( c )] of the Income Tax Act,1961, had levied tax / penal interest of Rs.207.23 lacs. The Commissioner of Income Tax (Appeals) has allowedpartial relief resulting in the demand being reduce to Rs.137.23 lacs. The Company has filed appeal before theIncome Tax Appellate Tribunal. Pending decision of the Tribunal, no provision for the demand has beenconsidered necessary.

ii) Other disputed income tax demand Rs.630.58 lacs (Previous Year 413.83 lacs).The Parent Company has been legally advised that it has a good case to succeed in income tax matters stated in(i) & (ii) above and hence no provision for additional tax liability that may arise on decision of appeals has beenmade as the same cannot be estimated at this stage.

g) The Assessing Officer vide order dated 18.03.2008 passed under UP Sales Tax Act has levied additional sales tax ofRs. 31.50 lacs on sale of flats/ houses to customer on Installment basis for the year 2004-05. The Company hasmoved appeal before Jt. Commissioner, Commercial Tax, Ghaziabad against this order.

The Assessing Officer vide order dated 19.03.2008 passed under UP Sales Tax Act has levied additional sales tax ofRs. 20.37 lacs on sale of flats/ houses to customer on Installment basis for the year 2003-04. The Company hasmoved appeal before Tribunal, Commercial Tax, Ghaziabad against this order.

h) Uttar Pradesh Revenue Authorities have demanded Rs.574.64 lacs (Previous year Rs.574.64 lacs) towards deficiencyin Stamp Duty on allotment of land to the Parent Company on leasehold basis by UP State Industrial DevelopmentCorporation Ltd. Against these demands the Parent Company has paid Rs.46.46 lacs under protest and the balancedemand has been stayed by the Hon'ble High Court / Board of Revenue. Pending decision, no provision has beenconsidered necessary.

i) The land allocated to Foreign Subsidiary for development is on leasehold for 10 years. Amount payable in future in


(Rs. in Lacs)

3. Contingent Liabilities (Rs. in Lacs)

31.03.2008 31.03.2007

a) Claims by customers for refund of amount deposited/Interest 221.15 239.78 b) Claims against the Group not acknowledged as debt 96.52 104.17 c) Surety Bonds issued to Customs/ Central Excise Departments 100.00 100.00 d) Share in Contingent liabilities of Joint Venture 5.66 2.28



respect of lease applicable to land to be handed over in future amounts to Rs.240.98 lacs (previous year Rs.255.71lacs).

4. During the year, the Company has acquired 3,095 Equity Shares (Total Share Capital: 9,000 Equity Shares) of M/s AveeIron & Steel Private Ltd. and further 3,045 Equity Shares has been acquired by Maestro Promoters Pvt Ltd. The balance2,860 Equity Shares were already acquired by Wrangler Builders Pvt. Ltd. in the year 2006-07.

The Maestro Promoters Pvt Ltd and Wrangler Builders Pvt. Ltd. were already subsidiaries of Ansal Housing & ConstructionLtd., hence M/s Avee Iron & Steel Private Ltd. also becomes wholly owned subsidiary of the Company.

Further, the Company has acquired 100% share capital of M/s. Sunrise Facility Management Pvt. Ltd. as a result of whichthis Company also becomes wholly owned subsidiary of the Company.


5. Deferred Tax Asset (Net)Detail of Deferred tax Asset/(Liability) (Net) as on 31st March 2008 is as given below : (Rupees in Lacs)


a) Deferred Tax Assets Arising on account of timing differences in:- Accrued Expenses allowable

on actual payments 53.56 39.14 - Expenses to be allowed in

succeeding years – -- - MAT Provision 35.36 -- - Business and Capital Loss 453.23 542.15 585.27 624.41

b) Deferred Tax LiabilitiesArising on account of timing differences in:- Depreciation 239.53 241.89 - Interest Capitalized on Borrowing Cost 854.97 1,094.50 256.06 497.95Deferred Tax Asset /(Liability) (Net) (a- b) (552.35) 126.46 Share of Joint Venture-Deferredtax liability (Net) (34.95) (41.14)Total Deferred Tax Asset/(Liability) (Net) (587.30) 85.32

c) Foreign Subsidiary is entitled for tax exemption under approval granted by the Board of Investment of Sri Lanka.Hence no deferred tax adjustment is considered necessary.

6. Segment ReportingSegment information for the year ended 31st, March,2008a) Information about Primary Business Segments

External Inter Total External Inter TotalSales Segment Sales Segment

Sales Sales

1. SEGMENT REVENUEReal Estate Development 25,762.21 (73.56) 25,688.65 21,092.87 25.23 21,118.10 Restaurants 701.35 - 701.35 523.91 - 523.91 Car Sales & Services 11,146.60 0.47 11,147.07 14,570.49 - 14,570.49 Segment Total 37,610.16 (73.09) 37,537.07 36,187.27 25.23 36,212.49 Eliminations 73.09 (25.23)Consolidated Total Revenue 37,610.16 36,187.27

(Rs. in Lacs)

2007-2008 2006-2007



a) Information about Primary Business Segments (Contd.)


External Inter Total External Inter TotalSales Segment Sales Segment

Sales Sales

2. SEGMENT RESULTSReal Estate Development 9,686.70 7,241.18 Restaurants 180.31 134.63 Car Sales & Services 218.54 300.32 Segment Total 10,085.55 7,676.13 Consolidated Total Results 10,085.55 7,676.13 Un-allocated expenditure netof un-allocated income 643.43 459.76 Operating Profit 9,442.12 7,216.37 Interest expenses 1,120.97 840.48 Interest/dividend income andsurplus on disposalof investments 87.12 115.35 Provision for taxation 2,846.71 1,856.68

3. Profit/(Loss) after taxationand beforeprior period & exceptional items 5,561.56 4,634.56 Prior period items Income/(Expenses) 41.39 (2.04)Add Exceptional income - -

4. Net Profit/ (Loss) 5,602.95 4,632.52 5. OTHER INFORMATION Segment Segment Segment Segment

Assets Liabilities Assets LiabilitiesReal Estate Development 66,616.06 15,650.71 47,631.53 12,940.65 Restaurants 839.16 69.04 601.09 48.67 Car Sales & Services 2,838.55 2,207.21 2,492.91 1,553.36 Segment Total 70,293.77 17,926.96 50,725.53 14,542.68 Unallocated corporate assets/liabilities (144.33) 29,784.15 4,152.37 25,579.29 Total assets/ liabilities 70,149.44 47,711.11 54,877.90 40,121.97

Capital Depreciation Non Cash Capital Depreciation Non CashExpenditure and Expenditure Expenditure and Expenditure

during the Amortisation other than during the Amortisation other thanyear other than year other than

Real Estate Development 528.43 222.05 100.35 345.50 230.31 49.66 Restaurants 162.61 28.37 - 11.23 23.01 0.16 Car Sales & Services 59.47 31.20 - 108.60 58.98 - Total 750.51 281.62 100.35 465.33 312.30 49.82

(Rs. in Lacs)

2007-2008 2006-2007


b) Information about Secondary Segments: Geographical

c) Notes:(i) The group (including Joint Venture) is organized into five main business segments, namely, Real Estate

Development, running of Restaurants and Sale and Services of Cars . Business Segments have been identifiedand reported taking into account, the nature of products & services, the differing risks and returns, theorganisation structure and the internal financial reporting systems.

(ii) Segment Revenue, Results, Assets and Liabilities include the respective amounts identifiable to each of thesegments.

8. Related Party Disclosuresa) Names of Related parties and description of relationship:

1. Key Management Personnel Mr. Deepak Ansal (Chairman & Managing Director) Mr. Kushagr Ansal (Wholetime Director)Mr. Vijay Chaddha (Managing Director of Joint Venture)Mr. Masashi Ishikawa (Wholetime Director of Joint Venture)

Relatives of Key Management Personnel Mrs. Divya Ansal (wife of Mr. Deepak Ansal)(With whom transaction taken place Mr. Karun Ansal (son of Mr. Deepak Ansal) during the year) Mr. Deepak Ansal (H.U.F.- Karta Mr. Deepak Ansal)

Enterprise in which Key Management M/s Infinet India Ltd.personnel having substantial interest M/s Akash Deep Portfolios Private Ltd.

(Rs. in Lacs)

2007-08 2006-07

Revenue by Geographical MarketIndia 37,468.63 36,056.70 Outside India 141.52 130.56

37,610.16 36,187.25 Carrying amount of Segment AssetsIndia 69,644.22 54,312.73 Outside India 505.22 565.17

70,149.44 54,877.90 Capital ExpenditureIndia 744.71 464.36 Outside India 5.80 0.97

750.51 465.33

7. Particulars of Earning per share (Basic & Diluted)


Net Profit after tax & Prior Period Items (Rs. in Lacs) (Numerator) 5595.05 4632.53 Number of Equity shares at the beginning of the year 1,67,09,544 1,44,29,544 Number of Equity shares at the year end 1,75,70,844 1,67,09,544 Weighted Average number of shares outstanding during the year (Denominator) 1,67,28,701 1,50,57,434 Nominal value of the share (Rs.) 10.00 10.00 Basic & diluted earning per share (Rs.) 33.45 30.77

Schedules forming part of the Consolidated AccountsSCHEDULE 16 ACCOUNTING POLICIES AND FINANCIAL NOTES (Contd.)



Enterprises in which relative of Key M/s Ansal Properties & Infrastructure Ltd. Management personnel having M/s Ansal Buildwell Ltd. substantial interest M/s Chiranjiv Bharti School

M/s Ansal Clubs Pvt. Ltd.M/s Moonlight Electric Company Private Ltd. M/s Sungrace Security Services Private Ltd.M/s Snow White Cable Network Private Ltd.M/s Global Consultant & Designers Private Ltd.M/s Glorious Properties Private Ltd.

2 Joint Venture Ms. Itochu CorporationM/s Automobile Investments (Mauritius) Ltd.M/s Itochu India Private Limited.


Key Relatives of Joint Total TotalManagement Key Venture /


RemunerationMr. Deepak Ansal 235.56 235.56 199.41 Ms. Divya Ansal 25.64 25.64 13.44 Mr. Kushagr Ansal 120.98 120.98 45.91 Mr. C. K. Thampy - - 10.98 Mr. Vijay Chaddha 10.53 10.53 3.23 Mr. Masashi Ishikawa 16.14 16.14 7.64 Total 408.85 280.61 Rent paid-Ms Divya Ansal 10.14 10.14 10.14 Rent received fromAnsal Clubs Pvt. Ltd. 7.79 7.79 7.32 Interest on Advance agnst. BookingMr. Deepak Ansal 30.58 - 30.58 - Expenses Reimbursed toAnsal Clubs Pvt. Ltd. 0.02 0.02 0.93 Servicing of VehicleM/s Itochu Corporation - - 0.63 M/s Itochu India Private Limited 1.08 1.08 0.08 Sale of Co. Assets - - - M/s Itochu Corporation 2.73 2.73 - Total 3.81 0.71 Lease Rent for PremisesM/s Itochu India Private Limited 0.43 0.43 1.05 Expenses Reimbursed fromAnsal Clubs Pvt. Ltd. 1.29 1.29 5.87 Guarantee FeesM/s Itochu Corporation 3.52 3.52 3.01

The following transactions were carried out with the related parties in the ordinary course of business (Rs. in lacs)






Advance ReceivedMr. Deepak Ansal 806.95 806.95 -- Mr. Deepak Ansal (HUF) 3.00 3.00 -- Ms.Divya Ansal 33.00 33.00 -- Mr. Kushagr Ansal 41.25 - 41.25 - Mr. Karun Ansal 24.00 - 24.00 -- Advance RepayedMr. Deepak Ansal 769.13 769.13 -- Ms. Divya Ansal 8.00 8.00 -- Mr. Kushagr Ansal 11.31 - 11.31 -- Mr. Karun Ansal 4.00 4.00 -- M/s. Deepak Ansal (HUF) 3.00 3.00 -- Investment made Outstanding as at 31.03.2008Infinet India Ltd. 0.01 0.01 0.01 Credit Balances as on 31.03.08Mr. Deepak Ansal 37.82 37.82 0.88 Ms. Divya Ansal 25.00 25.00 0.12 Mr. Kushagr Ansal 29.94 29.94 0.39 Mr. Karun Ansal 20.00 20.00 -- Ms. Megha Ansal 15.00 15.00 -- Ansal Buildwel Ltd. 45.84 45.84 45.84 Mr. Vijay Chaddha 2.67 2.67 1.72 Mr. Masashi Ishikawa 0.91 0.91 0.44 M/s Itochu Corporation 0.78 0.78 -- Total 177.96 49.40 Debit balances as on 31.03.08Chiranjiv Bharti School 28.68 28.68 21.86 Ansal Clubs Pvt. Ltd. 26.49 26.49 51.66 M/s Itochu Corporation - - 0.60 M/s Itochu India Private Limited 0.08 0.08 -- Ansal Properties & Industries Ltd. 230.14 230.14 232.14 Total 285.39 306.26 Guarantees & Collaterals taken fromas at 31.03.08Mr. Deepak Ansal 22,515.41 22,515.41 10274.50 Mr. Kushagra Ansal 1,750.00 1,750.00 -- Amount Received against BookingMr. Deepak Ansal 600.00 600.00 -- Amount Refunded against BookingMr. Deepak Ansal 600.00 600.00 --

The following transactions were carried out with the related parties in the ordinary course of business (Contd.)

(Rs. in lacs)






Equity Share Allotted (including share premium)Mr. Deepak Ansal 665.60 - 665.60 110.17 Ms. Divya Ansal - - 52.87 Mr. Kushagr Ansal - - 62.64 Mr. Karun Ansal - - 58.35 M/s. Deepak Ansal (HUF) - - 0.50 Sungrace Securities Services Pvt. Ltd. 376.48 376.48 53.07 Snow White Cable Network Pvt. Ltd. - - 30.87 Glorious Properties Pvt. Ltd. 41.60 41.60 55.81 Global Consultants & Designers Pvt. Ltd. 395.82 395.82 81.60 Akashdeep Portfolios Pvt. Ltd. - - 12.82 Total 1,479.50 518.70 Money Received against warrants during the yearMr. Deepak Ansal 621.54 621.54 99.16 Ms. Divya Ansal 22.50 22.50 47.58 Mr. Kushagr Ansal 22.50 - 22.50 56.38 Mr. Karun Ansal 22.50 22.50 52.52 M/s. Deepak Ansal (HUF) 22.50 22.50 0.45 Sungrace Securities Services Pvt. Ltd. 361.33 361.33 47.76 Snow White Cable Network Pvt. Ltd. 22.50 22.50 27.79 Glorious Properties Pvt. Ltd. 59.94 59.94 50.23 Global Consultants & Designers Pvt. Ltd. 378.74 378.74 73.44 Akashdeep Portfolios Pvt. Ltd. 22.50 22.50 11.54 Total 1,556.55 466.84Amount received against warrantsoutstanding as on 31.03.08Mr. Deepak Ansal 34.05 34.05 - Ms. Divya Ansal 59.97 59.97 - Mr. Kushagr Ansal 66.92 66.92 - Mr. Karun Ansal 63.84 63.84 - M/s. Deepak Ansal (HUF) 22.85 22.85 - Sungrace Securities Services Pvt. Ltd. 22.50 22.50 - Snow White Cable Network Pvt. Ltd. 44.40 44.40 - Glorious Properties Pvt. Ltd. 62.06 62.06 - Global Consultants & Designers Pvt. Ltd. 22.50 22.50 - Akashdeep Portfolios Pvt. Ltd. 31.56 31.56 - Deposits Repaid toMoon Light Electric Co. Pvt. Ltd. - - 57.78


(Rs. in lacs)






Dividend Paid for the Year 2006-07Mr. Deepak Ansal 26.72 26.72 19.78 Ms. Divya Ansal 12.82 12.82 9.49 Mr. Kushagr Ansal 15.19 - 15.19 11.24 Mr. Karun Ansal 14.14 14.14 10.47M/s. Deepak Ansal (HUF) 0.12 0.12 0.09Sungrace Securities Services Pvt. Ltd. 12.97 12.97 9.53Snow White Cable Network Pvt. Ltd. 7.49 7.49 5.55Glorious Properties Pvt. Ltd. 13.53 13.53 10.01Global Consultants & Designers Pvt. Ltd. 0.15 0.15 10.61Akashdeep Portfolios Pvt. Ltd. 3.11 3.11 2.30


(Rs. in lacs)


9. Operating Leases:

a) The Group has taken various residential / commercial premises under cancelable operating lease. These lease are normally

renewable on expiry.

b) The rental expenses in respect of operating leases is Rs.524.95 Lacs ( Previous Year 123.81 Lacs )

10. Balance Sheet and Profit and Loss Account of the Parent Company were approved by the Board of Directors on 30 June 2008.

Since the Chairman and Managing Director was out of India at that time, he has not signed the accounts.

11. Figures for the previous year have been restated/regrouped wherever necessary to conform to this year's classification.


Consolidated Cash Flow Statement For the year ended 31st March 2008

(Amount in Rupees)


A. CASH FLOW FROM OPERATING ACTIVITIESNet profit before Tax,Appropriations andExtra-Ordinary items 84,08,27,486 64,91,25,374 Adjustment for :Loss on Sale of fixed assets 6,23,126 3,44,322 Depreciation 3,25,49,736 3,19,88,418 Impairment Loss - 47,32,817 Advances written off 1,00,04,819 2,87,442 Misc Expenditure Written off 24,107 3,54,857 Interest & finance charges 12,31,28,037 9,24,91,792 Interest Received (Gross) - (10,325)Investment income (38,090) (69,28,021)Prior Period Income/(Expense) 39,25,788 (204307)Profit on sale of Assets (12,21,562) (9,25,298)Loss on sale of Investment 13,22,401 68,83,160 Profit on sale of Investment (86,25,104) 16,16,93,259 (45,98,614) 12,44,16,243 Operating profit before Working Capital changes 1,00,25,20,745 77,35,41,617 Adjustments for Working Capital changesIncrease/(Decrease) in Creditors & other Liabilities (3,50,42,437) (21,23,08,925)Decrease/(Increase) in Inventories (1,12,70,36,933) (19,77,57,371)Decrease/(Increase) in Sundry Debtors (16,18,74,324) (25,91,85,767)Decrease/(Increase) in Loans and Advances (26,96,19,777) (112,04,53,110)Adjustment on account of foreign currencytranslation of working capital of foreign subsidiary (18,79,692) (26,27,175)Deferred Revenue Expenses - (1,59,54,53,163) - (179,23,32,348)Cash generated from Operation (59,29,32,418) (101,87,90,731)Direct Taxes Paid (10,27,45,295) (17,33,71,323)Net Cash From Operating Activities (69,56,77,713) (119,21,62,054)

B. CASH FLOW FROM INVESTING ACTIVITIESSale of Investments 27,41,48,550 66,18,49,257 Investment Income received 38,090 69,28,021 Interest Income received - 10,325 Sale of Fixed Assets 87,15,351 41,40,269 Purchase of Fixed assets (9,76,89,260) (5,49,48,274)Payment of Preliminary Expenses - - Adjustment on account of foreign currencytranslation of Fixed Assets of foreign subsidiary 32,841 - Purchase of Investment (1,51,36,700) (91,88,00,400)Net Cash From Investing Activities 17,01,08,872 (30,08,20,802)


Consolidated Cash Flow Statement (Contd.) For the year ended 31st March 2008

(Amount in Rupees)


C. CASH FLOW FROM FINANCING ACTIVITIES

Proceeds from issuance of Share Capital

- Share Capital & Warrants 26,89,40,360 17,06,58,000

- Share Application Money - -

Net Proceeds from short term Borrowing (14,10,04,713) 25,27,82,169

Proceeds from Long Term Borrowing 1,93,63,36,435 161,13,96,000

Repayment of Long Term Borrowing (1,29,90,09,342) (33,16,64,880)

Repayment of Short Term Borrowing 5,69,38,471 (83,36,999)

Interest & Finance Charges paid (14,99,03,568) (5,77,27,583)

Payment of Dividend\Transferred to Investor

Education & Protection Fund (3,44,26,007) (2,39,46,892)

Profit Distribution Tax Paid (8,15,760) (6,73,200)

Net Cash Used In Financing Activities 63,70,55,876 161,24,86,615

Net Increase In Cash And Cash Equivalents 11,14,87,035 11,95,03,759

Cash And Cash Equivalents (Opening Balance) 21,16,12,534 9,13,76,375

Cash And Cash Equivalents (Op. Bl.) Taken

Over From Subsidiaries 1,51,918 7,32,400

Adjustment In Cash and Cash Equivalent

(Op.Bal) Due To Disposal In Joint Venture - -

Cash And Cash Equivalents (Closing Balance) 32,32,51,488 21,16,12,534

Notes :1. Cash and cash equivalents include cash & cheques in hand and balance with Schedule Banks.2. Cash flow statement has been prepared by following indirect method.3. Previous Year figures have been regrouped/rearranged wherever considered necessary, to make them comparable with Current

Year's figures.

Schedules referred to above form an integral part of the Consolidated Accounts









Optimists enrich the present, enhance the future,

challenge the improbable and attain the impossible.

– William Arthur Ward

PRODUCED BY [email protected]

Forward-looking statementIn this Annual Report we have disclosed forward-looking information to enable investors to know our product

portfolio, business logic and direction and comprehend our prospects. This report and other statements — written

and oral — that we periodically make are based on our assumptions. We have tried wherever possible to identify

such statements by using words such as ‘anticipate’, ‘believe’, ‘estimate’, ‘expect’, ‘intend’, ‘plan’, ‘project’ and

words of similar substance in connection with any discussion of future performance.

We cannot guarantee that these forward looking statements will be realized, although we believe that we have

been prudent in our assumptions. The achievement of results is subject to risks, uncertainties and even inaccurate

assumptions. If known or unknown risks or uncertainities materialize, or if underlying assumptions prove inaccurate,

actual results can vary materially from those anticipated, estimated or projected. Readers may bear this in mind.

We undertake no obligation to publicly update any forward-looking statements, whether as a result of new

information, future events or otherwise.

Contents

Coporate Information 1

Notice 2

Directors' Report 6

Report on Corporate Governance 14

Auditors' Report 29

Balance Sheet 32

Profit & Loss Account 33

Schedules 34

Balance Sheet Abstract and Business Profile 61

Cash Flow Statement 62

Statement relating to Subsidiary Companies 64

Consolidated Accounts 66

Attendance Slip/Proxy Form 95

Annual Report 2007-08

15 UGF, Indra Prakash, 21 Barakhamba Road, New Delhi 110 001Tel: +91 11 43577100, 43577390 & 43577380, Fax: +91 11 43577420

Email: [email protected]


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