Every Shareholder is entitled to Dividend when declared. The other rights are governed by the Articles of Association of the Company and the Companies Act, 1956.

2) In terms of "Accounting Treatment" referred to in the Scheme of Arrangement sanctioned by the Bombay High Court in its Order dated 6th March, 2009, the following accounting entries were made in the accounts.

(a) Land, Building and Plant & Machinery, other Assets & Liabilities were revalued / reviewed as on 1st January, 2009 at their fair market values in respect of the Company and the erstwhile subsidiary and the notional appreciation representing the difference between the revalued values and their original cost amounting to Rs. 222.47 Million (net) was credited to General Reserve which otherwise would have been taken to Fixed Asset Revaluation Reserve during F.Y. 2008-09.

(b) Arrears of Deferred Tax Asset of Rs.121.15 Million relating to pre-merger period has been deducted from the above General Reserve instead of recognizing in the Profit and Loss Account during F.Y. 2009 - 10.

The above treatment is however at variance with the Accounting Standard Nos. 10 and 22 and the Generally Accepted Accounting principles, and the General Reserve is not an appropriation out of profits, available for dividend.

3) Going Concern

The company has incurred loss of Rs. 1,710.57 Million for the year ended March 31,2014 and its negative net worth was Rs. 570.87 Million as on 31st March 2014. Notwithstanding the same, the accounts have been prepared on principles applicable to Going concern on account of the following :

a) Company is having large Receivables amounting to Rs. 2,488.67 Million as on March 31,2014. The Management is confident of realizing the same.

b) Infusion of funds by prospective investor.

c) Restructuring of loans by lenders.

4) The Company has obtained necessary permission from the Registrar of Companies, Pune vide their letter dated 19th September 2014 for holding Annual General Meeting on or before 27th December 2014 for approval of Annual Accounts.

5) A Bank Guarantee of Rs. 191.65 Million was invoked by a Customer in August 2012 and the same was contested before the High Court of Punjab & Haryana at Chandigarh. The matter has been referred for Arbitration. A Presiding Arbitrator, mutually agreed to by both parties, has been appointed and arbitration proceedings are expected to commence shortly.

6) The Company is engaged in execution of Mechanical and Electrical projects in the engineering industry. The Company had also put up a metal fabrication unit at Durg, Chattisgarh state for manufacturing customized metal components.

7) Company has classified Term Loans, Cash Credits and other facilities availed from Banks in "Other Current Liabilities".

8) UB Ostan (India) Private Limited, a joint-venture in which the company has a 35 % stake, has not yet commenced operations. No financial results have been prepared for UB Ostan (India) Private Limited, hence there is no impact on accounts of the Company. Additionally, the accounts of the company are not considered for consolidation under AS 27.

9) The Company has Service Tax outstanding dues of Rs.353.10 Million upto December 31, 2013 and for payment of these dues, company is taking all efforts. Delayed Interest Provisions up to March 31,2014 has been considered in the books.

Statutory Dues aggregating to Rs. 495.00 Million outstanding as on 31.03.2014 comprising of Service Tax, T.D.S, Indirect Taxes, Provident Fund, Gratuity etc.

10) Receivables

Recoverability of sums withheld by various clients as liquidated damages for various projects aggregates to Rs. 150.81 Million. The management is of the opinion that the above liquidated damages and other receivables are fully recoverable.

11) The Company has following exposure in foreign currencies -

1. Bank Account - Nepalese Rupee - 14,215.51.

2. EEFC Bank Account  - Euro              2,611.48

The Company has not taken hedge cover for the above amounts and has not entered into speculative derivative transactions.

b. With regard to disputed Sales Tax demands pending in various states, the Management is of the view that demands are not sustainable and hence no provision is presently considered necessary. Against above demands conservative provision of Rs. 16.50 Million till date, has been made in the books.

c. Cases filed by employees separated from the company in respect of their dues and such amounts has been considered as Contingent Liability and included in Note No. 29 a.V above.

In one of the cases above, a demand for Rs. 1.28 Million has been decided against the Company , against which Rs. 1.00 Million has been deposited in the Court in December 2013.

Several cases filed by Ex-employee on various grounds, have not been included in the above, as the amounts in such cases are not quantifiable.

12) Employee Benefits :

The Company has made provision in the accounts for liability of Gratuity and Leave encashment based on Actuarial Valuation, but has not funded the amounts. The particulars under the AS 15 (revised) furnished below are those which are relevant and available to the Company for this year.

13) a) Liability towards Gratuity, Superannuation and Employee's Deposit Linked Insurance has been fully provided in the accounts. Unfunded liabilities as at March 31, 2014 were Gratuity Rs.36.14 Million (Previous year - Rs.38.64 Million ), SuperannuationRs. 47.65 Million (Previous year - Rs. 45.51 Million ), Employee's Deposit Linked Insurance Rs. 6.98 Million ( Previous year Rs. 6.50 Million ). Out of above amounts, Gratuity is being paid by the Company, as and when claimed by the employees. As on March 31, 2014 Gratuity of Rs. 7.14 Million claimed by employees is remaining unpaid.

b) Present Valuation of Leave Encashment obligation as determined by Actuarial valuation is Rs. 12.50 Million, against which no funding is done, though fully provided for and dues are being paid as and when arises.

c) Provision in respect of separated employees towards Final Dues payable has been made till date to the extent of Rs. 19.00 Million which in opinion of management is reasonably adequate.

14) Balances under the head Loans and Advances, Other Current Assets ( Other Deposits ), Trade Receivables and Trade Payables are taken as per books and are subject to confirmation. In the opinion of the Management, these are realisable in the ordinary course of business at the values stated.

15) The Company has consistently not been disclosing the details of contract cost under broad natural heads, being a sensitive matter. To this extent there has been a variance with the generally accepted accounting principles.

16) Bank balances include:

(a) Fixed Deposits with Banks Rs.46.21 Million ( Previous year Rs.64.92 Million ) lodged as margin money deposits. Interest Income of Rs. 2.56 Million for F.Y. 2013- 14 is being negotiated with bank and not accrued in the books.

(b) Balances with Indian Scheduled Banks in foreign currency account Rs. 0.21 Million (Previous year - Rs. 0.18 Million ).

Maximum Balance during the year Rs. 0.01 Million ( Previous year - Rs.0.38 Million ) in Foreign Currency.

17) Events subsequent to Balance Sheet date :

Post 31st March 2014 various bank guarantees aggregating to Rs. 353.44 Million issued by the Company towards performance / mobilisation advance / security invoked by various clients / vendors.

Devolved Letters of Credit issued to vendors as on March 31,2014 was Rs.113.14 Million. As on date the same has increased to Rs. 237.71 Million due to continuing difficult financial conditions.

18) Two numbers creditors winding up petitions have been filed in Bombay High Court and consent terms have been filed.

Claims by Micro and Small and Medium enterprises totaling Rs. 5.66 Million along with applicable interest, is filed against the company and is being suitably represented.

19) Segment Reporting :

The Company has classified Operations into two Primary Business Segments i.e. Mechanical Erection and EPC Electrical , besides fabrication contracts which is a reportable segment and two Secondary Segments i.e. Domestic and Overseas , in accordance with the requirement of AS 17 - Segment Reporting issued by the Institute of Chartered Accountants of India.

Secondary Segment Reporting:

With regard to Secondary segment ( Domestic and Overseas ), there are no Overseas Operations during the year.

20) Related Party Disclosures :

a) Names of related parties and description of relationship

i) Associate Companies:

United Breweries (Holdings) Limited, Bangalore UB Infrastructure Projects Limited, Bangalore Kingfisher Finvest India Limited, Bangalore UB Ostan ( India ) Private Limited , Mumbai

ii) Subsidiary Companies:

UB Infrastructure Limited, Pune

Bhopal-Berasia-Sironj Highway Private Limited, New Delhi (Step down subsidiary) Sendhwa-Khetia Road Development Company Private Limited, Pune (Step down subsidiary)

iii) Directors / Key Management Personnel:

Mr. J.K.Sardana - Managing Director

21) Additional information pursuant to the provisions of Para 3,4C and 4D of Part II of Schedule VI to the Companies Act, 1956 is not given as construction being service activity is not covered under Para 3(ii) (C) of Schedule VI to the Companies Act, 1956.

22) Managerial Remuneration:

Although, the remuneration is in excess of limits with reference to Schedule XII Companies Act, 1956 but is permissible under the Notification No. GSR 534 (E) 14, 2011 issued by Ministry of Corporate Affairs; and approval of shareholders . previous Annual General Meeting held on 27th Sept. 2013.

23) Deferred Taxation:

As a matter of prudence, additional Deferred Tax asset during the year is not considered.

24) Previous year figures have been reclassified / regrouped / restated wherever necessary to conform to Schedule VI ( as amended) of the Companies Act, 1956.