2. Term Loan from Diwan Housing Finance Corporation Limited is Mortgage of Land and Building of the Project India Colony admeasuring about 1890050.76 Sq. ft. At Sruvey No. 206/1, 206/7, 206/9, 207/8,. 2079-10-11-12-13-14, at Village Vevji, Tal. Talsari, Dist. Thane and Charge of entire receivable of above projects and personal irrevocable guarantee of Shri B N Padsala and Sandeep B Padsala, Directors of the Company.

3. Drop Line Overdrafty Working Capital Limit of Rs.35.00 Crores from State Bank of Indis is secured Hypothecation of Cash Flow of 4 projects being executed by company is Bhilad, Kathlal, Umargaon-Nisarg Weekend Home Project and Geratpur, Ahmedabad which is further secured by Charge over entire Current assets of the Company and personal irrevocable guarantee of Shri B N Padsala and Sandeep B Padsala, Directors of the Company. The same is further collateraly secured by Equitable Mortgage of NA Plot of land admeasuring about 181994 Sq/mtrs.of Plot No. 11-22, 24 to 28, 32,33, 35-50 A1, A2 and D, Survey No. 867 868 to 895 in Navgujarat Industrial Estate P. Ltd. Opp. Mahemdavad rly. Station, Moje Mahemdabad, Dist. Kaira.

4. Contingent Liability:

Company has given guarantee to Tata Capital Financial Services Ltd. for Rs.300.00 lacs and to The Vijay Co.Op. Bank Ltd. for Rs.400.00 lacs for advances taken by M/s. B Nanji, a partnership firm in which compnay is partner having 50% share.

5. Company has valued the work-in-progress at Vevji, Umargaon, site at Direct Cost Plus Borrowing cost, for which no direct nexus for deployment offund borrwed is established, which is not in conformity with the requirement of various accounting standards i. e. AS-2, AS-7 AS-16 issued by the Institute of Chartered Accoutnants of India. Had the company not included the borrowing cost in valuation of stock, the profit for the year would have been lower by Rs. 42 7.48 lacs.

6. In case of Sales of Flats/Apartments of Akansha Flats, scheme at Vevji, Umargam, Dist Thane Maharashtra, sales is accounted at the time of giving possession to the purchasers. However, in view of the provisions of Maharashtra Ownership of Flats Act, 1963, company has to form either co. op. Society or a Company and execute sale deed in favour of society/ company. Company has booked sales in the books of accounts on giving possession to the buyers of the flats. Company has not recovered the contribution from the members for the proposed society as stipulated in the Agreement for Sale.

7. Company has paid an advance payment of Rs. 300.00 lacs against agreement of Rs.486.00 lacs to Sankira Resorls LLP (Previously known as Sankira Resorts P. Ltd. ) a firm in which Managing Diretcor and Executive Directors are partners, on the basis of agreement entered on 13-05-2013 for development of Nisarg - a Weekend Home for which no prior approval of the members has been taken.

8. Amount received Rs.220.55 lacs in earlier year as Advance for sale of land against proposed sale of land has been shown as Advance against Land and the same is not considered as a Deposit within the meaning of Sec.73 of the Companies Act, 2013 read with Rule 2(12)(d).

9. No Provision for bad boubtful interest free loan of Rs.69.07 lacs granted to 20 parties given in earlier years has been made in accounts.

10. Company has also granted interest bearing deposit of Rs.45.86 lacs to 2 parties at a normal rate of Interest. Advances for Purchase of Land in earlier years and amount recoverable in cash or kind or for value to be received is not considered as loan within the meaning of secton 186 of the Companies Act, 2013.

11. Company is making provision for total liability of gratuity payable under The Payment of Gratuity Act on th basis of 15 days salary for completed year of service of eligible employee without considering directors instead of providing the same on the basis of Acturiral Valuation which is not in confirmity of the Accounting Standard AS-15 issued by the Institute of Chartered Accountants of India,

12. Expense in respect of other short-term benefits like Leave Encashment is accounted on Cash Basis which is not in confirmity of the Accounting Standard AS-15 issued by the Institute of Chartered Accountants of India,

13. Related Party Disclosure as required by Accounting Standard AS 18 issued the Institute of Chartered Accountants of India is as under:

14. RELATIONSHIP:

Associate Companies/Firms- Enterprises ownwed by /over which Key Management Personnel are able to exercise significant influences:

B Nanji Construction Pvt. Ltd International Housing Finance Corporation Ltd Siddhi Vinayak Buildcon Pvt. Ltd. B Nanji Finance Ltd Sankira Resorts LLP

Key Management Personnel:

Shri Bhikhubhai Nanjibhai Padsala - Managing Director Shri Sandip Bhikhubhai Padsala - Executive Director Shri Siddarth Bhupendrtabhia Vyas - Chief Financial Officer & Whole Time KMP Shri Fakhruddin Jadaliwal - Company Secretary

15. Balances of Debtors, Creditors, Members Scheme deposit and advances are subject to reconciliation/confirmation and consequential adjustments, if any.

16. Balances of unsecured lenders are subject to reconciliation/confirmation pending settlement with respective lender.

17. In the opinion of the board, current assets, loans and advances are approximately of the value stated if realized in the ordinary course of the business. The provision for all known liabilities is made.

18. The company is operating in single business Real Estate Development s. Therefore the disclosure requirement as required by accounting standard (AS) 17 on "Segment Reporting" is not applicable.