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Head Office

ASHIANA HOUSING LIMITED

304, Southern Park, Saket District Centre, Saket, New Delhi - 110 017.

Ph: (011) 4265 4265

Web: www.ashianahousing.com Ashiana Housing Limited

Annual Report 2009-10

CREATING

SYNERGIES TO DELIVER

01 02 04 06 08

12 14 16 20 22

Ashiana Housing Ltd.

26 28 31 36 41 44

Vatika Marketing Ltd.

59 61 64

Ashiana Retirement Villages Ltd.

74 76 79

Consolidated Results (Ashiana Housing Ltd.)

Creating Synergies to Deliver Vision & Mission Company Snapshots 10 years at a Glance Operational Highlights

Financial Highlights Letter from Chairman Q&A with the MD Organisational Chart Key Management

AGM Notice Director’s Report Management Discussion & Analysis Corporate Governance Auditor’s Report Financials

Director’s Report Auditor’s Report Financials

Consolidated Auditors’ Report Consolidated Financials

Contents

CREATING

Ashiana Housing Ltd. has over the years

worked towards building trust with

customers, business partners & investors.

One of the key pillars of that effort is

building organisation wide synergies to

ensure timely deliveries and fair dealings

with all the stake holders. Our projects are

known for their after sales support and

high customer satisfaction.

Ashiana Housing Ltd. aims to have

transparent dealings and have built

structured systems for construction,

marketing, finance & other departments.

We aspire to be one of the most trusted

real estate companies in India and we aim

to deliver superior value to all our

stakeholders with a high level of customer

focus and ensuring delivery of our

commitments and promises.

01 02 04 06 08

12 14 16 20 22

26 28 31 36 41 44

59 61 64

74 76 79

Consolidated Results (Ashiana Housing Ltd.)

Creating Synergies to Deliver Vision & Mission Company Snapshots 10 years at a Glance Operational Highlights

Financial Highlights Letter from Chairman Q&A with the MD Organisational Chart Key Management

AGM Notice Director’s Report Management Discussion & Analysis Corporate Governance Auditor’s Report Financials

Director’s Report Auditor’s Report Financials

Consolidated Auditors’ Report Consolidated Financials

Contents

CREATING

Ashiana Housing Ltd. has over the years

worked towards building trust with

customers, business partners & investors.

One of the key pillars of that effort is

building organisation wide synergies to

ensure timely deliveries and fair dealings

with all the stake holders. Our projects are

known for their after sales support and

high customer satisfaction.

Ashiana Housing Ltd. aims to have

transparent dealings and have built

structured systems for construction,

marketing, finance & other departments.

We aspire to be one of the most trusted

real estate companies in India and we aim

to deliver superior value to all our

stakeholders with a high level of customer

focus and ensuring delivery of our

commitments and promises.

CREATING

We believe in

with a because,

, neither statistics

nor numbers, nor stones, bricks or concrete,

but our people: the

professionalism

personal touch

at our heart lie

Ashiana family

Our Vision

Our Mission

To nurture an environment which brings a

smile of satisfaction to people who meet

us, who live in homes built by us, work with

us, supply to us & invest in us.

To develop & maintain homes which are

functional, aesthetically pleasing,

environment friendly for the middle income

group. To create retirement communities

where senior citizens can lead active, fun

filled & secure life with dignity.

Our Values

Happiness all around: •

Customer oriented approach: •

• •

Transparency: • •

Importance to all

in the organization Freedom to work &

Speak Being able to make a mistake

Family like working environment

Good inter - personal relationship

Passion

for quality Continuous improvement

Honesty in commitment Delivery in time

Softness in behavior After sale service

Adaptability to change

Honesty Sharing

information regularly Self-belief

VISION & MISSION

32 Ashiana Housing Ltd. Annual Report 2009-2010

CREATING

We believe in

with a because,

, neither statistics

nor numbers, nor stones, bricks or concrete,

but our people: the

professionalism

personal touch

at our heart lie

Ashiana family

Our Vision

Our Mission

To nurture an environment which brings a

smile of satisfaction to people who meet

us, who live in homes built by us, work with

us, supply to us & invest in us.

To develop & maintain homes which are

functional, aesthetically pleasing,

environment friendly for the middle income

group. To create retirement communities

where senior citizens can lead active, fun

filled & secure life with dignity.

Our Values

Happiness all around: •

Customer oriented approach: •

• •

Transparency: • •

Importance to all

in the organization Freedom to work &

Speak Being able to make a mistake

Family like working environment

Good inter - personal relationship

Passion

for quality Continuous improvement

Honesty in commitment Delivery in time

Softness in behavior After sale service

Adaptability to change

Honesty Sharing

information regularly Self-belief

VISION & MISSION

COMPANY SNAPSHOT

�92.2 Lakhs

� 25 years

� Brand

� 71Lakhs

� construction capability

�Direct

�Pioneer Retirement

Sq Ft delivered

History of over

High Visibility

Over Sq Ft area under

development

In house

sales approach

in Housing in

� Debt free

18 years 4000 units

� Delhi (NCR), Rajasthan,

Maharashtra, Jharkhand

Virtually

Managing and maintaining

group housing complexes for over

with under

management

Projects in

Retirement Resorts, Group

Housing, Hotels, Retail, Facility

Management

At Ashiana land is

Execution

instead of a land-banking model.

Targeted

of current year’s execution plan.

Raw Material.

focused model

land inventory of 5-7

year’s

CREATING

COMPANY SNAPSHOT

�92.2 Lakhs

� 25 years

� Brand

� 71Lakhs

� construction capability

�Direct

�Pioneer Retirement

Sq Ft delivered

History of over

High Visibility

Over Sq Ft area under

development

In house

sales approach

in Housing in

� Debt free

18 years 4000 units

� Delhi (NCR), Rajasthan,

Maharashtra, Jharkhand

Virtually

Managing and maintaining

group housing complexes for over

with under

management

Projects in

Retirement Resorts, Group

Housing, Hotels, Retail, Facility

Management

At Ashiana land is

Execution

instead of a land-banking model.

Targeted

of current year’s execution plan.

Raw Material.

focused model

land inventory of 5-7

year’s

CREATING

10 Years At A Glance

Sl. No. 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10Particulars

1 Share Capital 535.31 535.31 535.31 535.31 535.31 516.70 516.70 1808.45 1808.45 1808.45

2 Reserve & Surplus 480.41 570.55 946.46 1461.64 1402.84 1926.10 2717.35 4968.33 7819.59 11170.50

3 Net Worth 1015.72 1105.86 1481.77 1996.95 1938.15 2442.80 3234.05 6776.77 9628.03 12978.94

4 Long Term Debts 127.98 121.01 136.76 144.38 136.96 131.58 315.62 256.08 111.38 784.13

5 Gross Fixed Assets 265.40 305.88 316.22 358.43 430.79 596.00 1396.92 2804.81 3211.93 3434.15

6 Net Fixed Assets 188.11 209.46 212.32 244.11 300.97 441.48 1227.58 2539.79 2822.16 2910.22

7 Capital Work In Progress - 0.30 - - 21.12 217.71 621.67 255.12 518.73 1304.63

8 Investments 134.8 442.86 491.03 1157.46 1885.03 2322.08 2694.97 4572.07 4068.38 4985.43

9 Net Current Assets 808.92 598.87 943.72 767.84 (93.93) (372.20) (819.99) (105.21) 2610.36 4873.74

10 Sales & Other Income 1104.36 1325.89 2208.09 2636.98 1456.77 3921.22 5568.71 13345.11 10401.04 12102.91

11 Operating Expendiure 1015.26 1216.66 1804.27 1994.70 1437.67 3294.61 4446.70 8860.73 7026.58 7411.18

12 EBITDA (Operating Profit) 89.10 109.23 403.82 642.28 19.10 626.61 1122.01 4484.38 3374.46 4691.73

13 Profit Before Tax 75.39 94.45 389.26 624.78 (0.41) 598.66 1086.14 4341.84 3208.10 4436.66

14 Profit After Tax 52.81 86.55 351.01 575.56 (12.63) 553.07 944.67 3865.10 2839.88 3676.96

15 EPS 0.29 0.44 1.92 3.07 (0.07) 3.06 5.22 21.37 15.70 20.33

16 Dividend (Rs. per Share) - - - 0.29 0.29 0.57 0.71 1.50 - 1.50

17 Return on Avg.Net Worth % 5% 8% 27% 33% -1% 25% 33% 77% 35% 33%

18 Gross Advances from Customers 1536.66 1902.50 1511.16 1758.85 4687.08 6916.94 8895.29 7600.07 13671.32 11921.64

(Rs. in Lakhs)

Note: All figures are consolidated except for FY 2000-01 for which consolidated figures are unavailable.

CREATING

94.05 94.05

construction capabilities

flexibility in execution with

to changing

industry

In-house

cost and quality control

faster

adaptation

dynamics.

OPERATIONAL HIGHLIGHTSFINANCIAL YEAR 2009 - 10

CREATING

�Started Handing Over:

��

Other Developments:Significant Launches:��

��

Significant Achievements & Developments:�

Area sold of 7.07 lakhs sq. ft. which is

35.96% higher than 2008-09.Ashiana Aangan Phase I &II totaling 640

units and saleable area of 8.7 lakhs sq. ft. Partnership entered with Manglam Group,

to develop Rangoli Gardens, a 25 lakhs Ashiana Manglam, Jaipur with 154 units sq.ft. project. First phase already launched and saleable area of 2.15 lakhs sq. ft. with 2.75 lakhs saleable area.

Ashiana Amarbagh, Jodhpur with 95 villas Average Realisation Rs. 2,071 per sq. ft. and saleable area of 1.48 lakhs sq. ft.

Village Centre, the commercial complex Utsav, Jaipur - Phase II & IIIhaving shops, office space and hotel rooms

Ashiana Brahmananda, Jamshedpur - Phase I is expected to become operational in first

half of Financial Year 2010-11 (Total Built Utsav, Lavasa - Phase II

Up Area of 1,00,000 sq. ft.).

Rangoli Gardens, Jaipur - Phase ISales office opened in Mulund (West), Mumbai.

Head office expanded in New Delhi by Highest ever construction of 10.22 lakhs taking another office space in the same sq. ft. building.

Ashiana Utsav, Jaipur

94.05 94.05

construction capabilities

flexibility in execution with

to changing

industry

In-house

cost and quality control

faster

adaptation

dynamics.

OPERATIONAL HIGHLIGHTSFINANCIAL YEAR 2009 - 10

CREATING

�Started Handing Over:

��

Other Developments:Significant Launches:��

��

Significant Achievements & Developments:�

Area sold of 7.07 lakhs sq. ft. which is

35.96% higher than 2008-09.Ashiana Aangan Phase I &II totaling 640

units and saleable area of 8.7 lakhs sq. ft. Partnership entered with Manglam Group,

to develop Rangoli Gardens, a 25 lakhs Ashiana Manglam, Jaipur with 154 units sq.ft. project. First phase already launched and saleable area of 2.15 lakhs sq. ft. with 2.75 lakhs saleable area.

Ashiana Amarbagh, Jodhpur with 95 villas Average Realisation Rs. 2,071 per sq. ft. and saleable area of 1.48 lakhs sq. ft.

Village Centre, the commercial complex Utsav, Jaipur - Phase II & IIIhaving shops, office space and hotel rooms

Ashiana Brahmananda, Jamshedpur - Phase I is expected to become operational in first

half of Financial Year 2010-11 (Total Built Utsav, Lavasa - Phase II

Up Area of 1,00,000 sq. ft.).

Rangoli Gardens, Jaipur - Phase ISales office opened in Mulund (West), Mumbai.

Head office expanded in New Delhi by Highest ever construction of 10.22 lakhs taking another office space in the same sq. ft. building.

Ashiana Utsav, Jaipur

94.05 94.05 Ashiana’s

engage in selling to and

long-term instead of a broker

driven model selling to speculative

investors. This provides

in an industry

starved of quality information.

in-house sales team

actual users

investors

better market

insights

CREATING

10 Ashiana Housing Ltd. Annual Report 2009-2010 11

5.48 7.

Financial Year

05-06 06-07 07-08 08-09 09-10

5.266.

Financial Year

05-06 06-07 07-08 08-09 09-10

Bhiwadi Lavasa JodhpurJaipur Jamshedpur

Group Housing Retirement Resort

Group Housing Retail and Hotel Retirement Resort

94.05 94.05 Ashiana’s

engage in selling to and

long-term instead of a broker

driven model selling to speculative

investors. This provides

in an industry

starved of quality information.

in-house sales team

actual users

investors

better market

insights

CREATING

10 Ashiana Housing Ltd. Annual Report 2009-2010 11

5.48 7.

Financial Year

05-06 06-07 07-08 08-09 09-10

5.266.

Financial Year

05-06 06-07 07-08 08-09 09-10

s Sq.F

Bhiwadi Lavasa JodhpurJaipur Jamshedpur

Group Housing Retirement Resort

Group Housing Retail and Hotel Retirement Resort

Joint development model

hence deployment of

We operate in locations where is a

of total cost.

lowers

investment requirements

lower capital.

smaller component

CREATING

� �

��

Sales and Other Income increased by 16.36% Proposed Dividend Rs. 1.5 per share

to Rs.12,103 lakhs from Rs. 10,401 lakhs. (Previous year NIL)

PAT recorded Rs. 3,677 lakhs as compared to Consolidated Debt Equity Ratio 0.06

Rs. 2,840 lakhs last year, an increase of (Previous year 0.01) 29.47%

Consolidated Operating Cash Flows Consolidated Operating Margin 38.77% Rs. 4,705 lakhs (Previous Year Rs. 3,670 (Previous Year 32.44%) lakhs)

Consolidated Net Profit Margin 30.38% Consolidated Free Cash Flows Rs. 3,251 (Previous year 27.30%) lakhs (Previous Year Rs. 524 lakhs)

Consolidated EPS Rs.20.33/- (Previous year

Rs. 15.70/- )

FINANCIAL HIGHLIGHTS FINANCIAL YEAR 2009 - 10

4 6,77

7 9,62

Financial Year

05-06 06-07 07-08 08-09 09-10

15,000

10,000

0Financial Year

05-06 06-07 07-08 08-09 09-10

Financial Year

05-06 06-07 07-08 08-09 09-10

3.06 5.

Financial Year

05-06 06-07 07-08 08-09 09-10

15,000

10,000

Joint development model

hence deployment of

We operate in locations where is a

of total cost.

lowers

investment requirements

lower capital.

smaller component

CREATING

� �

��

Sales and Other Income increased by 16.36% Proposed Dividend Rs. 1.5 per share

to Rs.12,103 lakhs from Rs. 10,401 lakhs. (Previous year NIL)

PAT recorded Rs. 3,677 lakhs as compared to Consolidated Debt Equity Ratio 0.06

Rs. 2,840 lakhs last year, an increase of (Previous year 0.01) 29.47%

Consolidated Operating Cash Flows Consolidated Operating Margin 38.77% Rs. 4,705 lakhs (Previous Year Rs. 3,670 (Previous Year 32.44%) lakhs)

Consolidated Net Profit Margin 30.38% Consolidated Free Cash Flows Rs. 3,251 (Previous year 27.30%) lakhs (Previous Year Rs. 524 lakhs)

Consolidated EPS Rs.20.33/- (Previous year

Rs. 15.70/- )

FINANCIAL HIGHLIGHTS FINANCIAL YEAR 2009 - 10

4 6,77

7 9,62

Financial Year

05-06 06-07 07-08 08-09 09-10

15,000

10,000

Financial Year

05-06 06-07 07-08 08-09 09-10

Financial Year

05-06 06-07 07-08 08-09 09-10

3.06 5.

Financial Year

05-06 06-07 07-08 08-09 09-10

15,000

10,000

LETTER from CHAIRMAN emeritus

Greetings Share Owners,

It's always a pleasure to write these few lines once a

year, to share with you the performance and outlook of

your company.

The Indian economy has managed to navigate the

financial crisis much better than others. With that the real

estate industry has started recovering from the lows of

2008. We also see the industry to grow continuously

due to the severe shortage of housing in this country. The

challenges ahead will be in creating spaces that serve

the needs of the varied market in India whether it is

retirement resorts for senior citizens, low cost housing for

the poor, super luxury homes for the rich or affordably

priced homes for the middle class.

We never slowed down construction even during the

crisis and equivalent area constructed during 2009-10

for the first time crossed 10 lakhs sq.ft. This has allowed

us to deliver phases of projects in three different locations

during 2009-10 and reinforced Ashiana's commitment

to its customers. We are targeting to construct 20 lakhs

sq.ft. per year by 2012-13.

Ashiana's cash flow management, conservative

approach to debt, and thrust on execution has resulted in

we coming out much stronger than we were before the

slowdown. We stressed on organization building and

execution capacity enhancement rather than land

banking and this has laid a strong foundation for future

growth. Ashiana will continue to be at the forefront of the

institutionalization of the real estate business in India.

We are optimistic about the future and endeavour to

build Ashiana as one the most trusted real estate

companies in India with a presence in all four regions of

the country.

With best wishes,

Om Gupta

Chairman Emeritus

CREATING

We sell rather

than just a house. This provides

to development team to

over the long-term.

quality lifestyle

inputs

improve

quality

15Annual Report 2009-2010Ashiana Aangan, Bhiwadi

LETTER from CHAIRMAN emeritus

Greetings Share Owners,

It's always a pleasure to write these few lines once a

year, to share with you the performance and outlook of

your company.

The Indian economy has managed to navigate the

financial crisis much better than others. With that the real

estate industry has started recovering from the lows of

2008. We also see the industry to grow continuously

due to the severe shortage of housing in this country. The

challenges ahead will be in creating spaces that serve

the needs of the varied market in India whether it is

retirement resorts for senior citizens, low cost housing for

the poor, super luxury homes for the rich or affordably

priced homes for the middle class.

We never slowed down construction even during the

crisis and equivalent area constructed during 2009-10

for the first time crossed 10 lakhs sq.ft. This has allowed

us to deliver phases of projects in three different locations

during 2009-10 and reinforced Ashiana's commitment

to its customers. We are targeting to construct 20 lakhs

sq.ft. per year by 2012-13.

Ashiana's cash flow management, conservative

approach to debt, and thrust on execution has resulted in

we coming out much stronger than we were before the

slowdown. We stressed on organization building and

execution capacity enhancement rather than land

banking and this has laid a strong foundation for future

growth. Ashiana will continue to be at the forefront of the

institutionalization of the real estate business in India.

We are optimistic about the future and endeavour to

build Ashiana as one the most trusted real estate

companies in India with a presence in all four regions of

the country.

With best wishes,

Om Gupta

Chairman Emeritus

CREATING

We sell rather

than just a house. This provides

to development team to

over the long-term.

quality lifestyle

inputs

improve

quality

15Annual Report 2009-2010Ashiana Aangan, Bhiwadi

Q & A with the MD

CREATING

Q. Can you highlight your achievements in the

year gone by?

Q. How has your company evolved over the last

10 years?

Q. You have been a first mover in launching

retirement housing projects. How has your

experience been and what are your plans for

the future?

In the financial year 2009-10, our company

achieved highest ever construction of 10.22

lakhs sq. ft. and launched largest ever project

of the company “Rangoli Gardens” in Jaipur

having estimated saleable area of 25 lakhs sq.

ft. Further, total consolidated sales and other

income was recorded at Rs. 12,103 lakhs and

Profit After Tax at Rs. 3,677 lakhs.

Our company started as a small developer in

Patna. As we gained experience, we ventured

to Jamshedpur. Subsequently, we were the first

real estate developer to start group housing at

Bhiwadi in the early nineties.

Our progress has been very dramatic over the

last 10 years. From being a two projects

company, constructing two lakhs sq. ft. every

year, we currently are developing over 70

lakhs sq. ft. in eight projects across five cities.

We have successfully developed our first

retirement resort 'Utsav' at Bhiwadi. Our

brands Ashiana & Utsav have become trusted

names in the industry. We have focussed on

timely delivery and that has helped us win the

buyers trust over a period of time.

Q. We all have heard about Utsav at Lavasa, a

project that is close to your heart. What is

unique about it and what are your plans for the

Q. Are you planning to expand your presence in

more cities?

We started our first retirement housing project

Utsav at Bhiwadi in 2004. It had 640 units and

its success totally surpassed our expectations.

We have now launched two more projects,

Utsav at Lavasa and Utsav at Jaipur, which are

developing at rapid pace. Going forward we

want to launch Utsav Retirement Resorts in

other Indian cities.

Lavasa is located in the Western Ghats, on the

banks of the Baji Pasalkar Reservoir behind the

Varasgaon Dam near Pune and Mumbai. The

city is coming up on eight large hillocks that

surround the elongated Varasgaon Dam

Reservoir.

The location of Utsav is just perfect in Lavasa.

Nestled in Dasve valley, Utsav is engulfed with

emerald green mountains on three sides and

fourth side opening to the beautiful Lavasa

lake. The 30 acre Retirement resort is set in such

a way that most of the area will be left

untouched for users to enjoy the natural beauty

of the hills and vales of Sayadharis.

Utsav at Lavasa has a total saleable area of

6.87 lakhs sq. ft. spread across villas and flats.

We launched Phase I in 2008 and got a very

good response and have opened bookings in

Phase II recently.

We are definitely planning to expand our

presence in more cities in India. We have been

scouting for land in Pune and other parts of

western India. We also have been approached

by land owners in Southern & Eastern India,

and looking for a good location to launch our

next project. We want to take Utsav to more

cities in India, specifically peripheral location

of metros and other large cities. That said, we

are concentrating at strengthening our

presence in the cities where we have existing

projects for two reasons. One to maintain

cont inui ty and second that Ashiana

commands a premium in existing markets

because of a trusted brand name and proven

track record. By 2012-13 we are targeting

constructon of 20 lakhs sq. ft. every year.

Vishal Gupta, MD

17Annual Report 2009-2010Ashiana Amarbagh, Jodhpur

Q & A with the MD

CREATING

Q. Can you highlight your achievements in the

year gone by?

Q. How has your company evolved over the last

10 years?

Q. You have been a first mover in launching

retirement housing projects. How has your

experience been and what are your plans for

the future?

In the financial year 2009-10, our company

achieved highest ever construction of 10.22

lakhs sq. ft. and launched largest ever project

of the company “Rangoli Gardens” in Jaipur

having estimated saleable area of 25 lakhs sq.

ft. Further, total consolidated sales and other

income was recorded at Rs. 12,103 lakhs and

Profit After Tax at Rs. 3,677 lakhs.

Our company started as a small developer in

Patna. As we gained experience, we ventured

to Jamshedpur. Subsequently, we were the first

real estate developer to start group housing at

Bhiwadi in the early nineties.

Our progress has been very dramatic over the

last 10 years. From being a two projects

company, constructing two lakhs sq. ft. every

year, we currently are developing over 70

lakhs sq. ft. in eight projects across five cities.

We have successfully developed our first

retirement resort 'Utsav' at Bhiwadi. Our

brands Ashiana & Utsav have become trusted

names in the industry. We have focussed on

timely delivery and that has helped us win the

buyers trust over a period of time.

Q. We all have heard about Utsav at Lavasa, a

project that is close to your heart. What is

unique about it and what are your plans for the

Q. Are you planning to expand your presence in

more cities?

We started our first retirement housing project

Utsav at Bhiwadi in 2004. It had 640 units and

its success totally surpassed our expectations.

We have now launched two more projects,

Utsav at Lavasa and Utsav at Jaipur, which are

developing at rapid pace. Going forward we

want to launch Utsav Retirement Resorts in

other Indian cities.

Lavasa is located in the Western Ghats, on the

banks of the Baji Pasalkar Reservoir behind the

Varasgaon Dam near Pune and Mumbai. The

city is coming up on eight large hillocks that

surround the elongated Varasgaon Dam

Reservoir.

The location of Utsav is just perfect in Lavasa.

Nestled in Dasve valley, Utsav is engulfed with

emerald green mountains on three sides and

fourth side opening to the beautiful Lavasa

lake. The 30 acre Retirement resort is set in such

a way that most of the area will be left

untouched for users to enjoy the natural beauty

of the hills and vales of Sayadharis.

Utsav at Lavasa has a total saleable area of

6.87 lakhs sq. ft. spread across villas and flats.

We launched Phase I in 2008 and got a very

good response and have opened bookings in

Phase II recently.

We are definitely planning to expand our

presence in more cities in India. We have been

scouting for land in Pune and other parts of

western India. We also have been approached

by land owners in Southern & Eastern India,

and looking for a good location to launch our

next project. We want to take Utsav to more

cities in India, specifically peripheral location

of metros and other large cities. That said, we

are concentrating at strengthening our

presence in the cities where we have existing

projects for two reasons. One to maintain

cont inui ty and second that Ashiana

commands a premium in existing markets

because of a trusted brand name and proven

track record. By 2012-13 we are targeting

constructon of 20 lakhs sq. ft. every year.

Vishal Gupta, MD

17Annual Report 2009-2010Ashiana Amarbagh, Jodhpur

Q. You have been using the term Equivalent Area

Constructed. Can you explain the term?

Q. What are the criterias that you look for when you

are looking for a land parcel to launch a

project?

Q. What really differentiates Ashiana Housing

from its competitors?

Q. There is virtually no debt in your balance sheet,

which is quite different from the other real estate

companies? Historically also that has been the

case? Can you explain your rationale for doing so?

Equivalent Area Constructed in any period is the

percentage of work value done in that period

multiplied by the total size of the project. For

example if a project is of 500 sq. ft. and total

work value of the project is Rs. 5,00,000 and

during the period work done value was

Rs. 1,00,000 then equivalent area constructed

d u r i n g t h e p e r i o d w i l l b e 2 0 %

(1,00,000/5,00,000) of 500 sq. ft. i.e. 100 sq.

First of all we look for a land parcel after we

have conceived a project that we believe will

work in a particular market based on market

dynamics, our brand presence, culture and

economy of that particular micro market. Some

locations we would look at retirement resorts

and others we would do group housing. We also

look to define the product mix of different sizes

(in square feet) and kinds of units (villlas, low-

rise, high-rise etc.) based on the price points we

believe will work in that particular market. We

also benchmark minimum gross profit and per

square feet margins that a project is expected to

deliver. Finally, we like to keep land costs at 20-

25% of total cost or lower and look at

minimizing risks associated with land by

entering into joint ventures with land owners.

Ashiana Housing as its stand today is the

outcome of a carefully nurtured dream whose

foundation was laid out three decades back by

my father. We have developed a number of

features that make us stand out from our

competitors including that we have focussed on

execution rather than land banking, we target a

land inventory of five to seven times current

yearly execution capacity. Our sales are driven

by end-users and not investors and therefore we

sell directly to the customers instead of going

through broker's. Also, we carry out

construction ourselves rather than contracting it

out, this allows for best cost and quality control.

Lastly, we believe in long term commitments and

stay with out customer for life by carrying out

facliities management of projects built by us.

Q. Why are your reported tax rates so low? Will

this low taxation continue for the future?

Q. One of the value system of the company is

transparency? Could you elaborate on that?

How do you plan to be transparent with the

shareholders?

We are conservative by nature. That is how my

father built the company and that is how we

want to keep it going forward. Real estate to

some extent is a very cyclical business. There are

periods of rapid growth with big price increases

followed by a slump, where prices can go down

and sales can reduce dramatically. This is what

happened in 2008 and part of 2009. Now the

market has recovered and most of us are

optimistic about the future.

Our business model is extremely capital

efficient. We try to spend small amounts in land

acquisition as we operate in locations where

land cost is a smaller component of total cost

and we also partner with land owners on a

revenue/profit share model. Since Ashiana

enjoys a very good brand name, the

construction finance requirements are met with

customer advances. This has resulted in high

return on average net worth that is reflected in

our financials.

Our tax rates are low, because most of our

projects qualify under Section 80 (IB) of IT Act,

1961 which gave Income Tax exemption to

residential projects as long as they met certain

criteria. So for the past few years we paid taxes

under MAT provisions of IT Act.

This section was applicable to projects whose

building plans were passed before March 2008

and going forward our new projects will not

have this benefit. So going forward our blended

tax rate is bound to go up. However, we have

unutilized MAT Credit of about Rs. 13.5 Cr and

this will help us keep our tax rates below the

corporate tax rate for the next couple of years.

One of our core values is transparency. We have

always tried to be transparent in our dealings and

our communications with all our stakeholders i.e.

customers, suppliers, partners, employees and

shareholders. We try to communicate on a regular

basis and provide periodic updates on the

progress of our projects. We like to be transparent

in any issues we are facing, and focus on making

sure that people are aware of what is happening in

the company.

Over the last year we have star ted

communicat ing wi th our shareholders

regularly. We give notices to BSE on a

regular basis, and are updating our

website (www.ashianahousing.com) with all the

latest financial reports. We aim to hold an analysts

conference call on a quarterly basis, the details of

which are on website and also sent to BSE. We

invite all our esteemed shareholders to log in those

calls and ask us anything that is there on their

All of us at Ashiana are proud of what we have

accomplished together. Each of us is eager to

build on that legacy of achievement and reach

new heights of success.

Q. Any message for the shareholders?

We have developed over 90 lakhs sq. ft. of area

in the last 25 years, and hope to build more than

that in the next five years. We hope to make

Ashiana one of the most trusted real estate name

in India and Utsav the largest Retirement Resort

brand in India.

We are committed to enhancing shareholder

value and pay regular dividends as cash flows

permit. We have, behind us, a proud and

distinguished legacy. We have, before us, an

exciting and successful future. We are eager to

make it happen.

Ashiana Manglam, Jaipur

Q. You have been using the term Equivalent Area

Constructed. Can you explain the term?

Q. What are the criterias that you look for when you

are looking for a land parcel to launch a

project?

Q. What really differentiates Ashiana Housing

from its competitors?

Q. There is virtually no debt in your balance sheet,

which is quite different from the other real estate

companies? Historically also that has been the

case? Can you explain your rationale for doing so?

Equivalent Area Constructed in any period is the

percentage of work value done in that period

multiplied by the total size of the project. For

example if a project is of 500 sq. ft. and total

work value of the project is Rs. 5,00,000 and

during the period work done value was

Rs. 1,00,000 then equivalent area constructed

d u r i n g t h e p e r i o d w i l l b e 2 0 %

(1,00,000/5,00,000) of 500 sq. ft. i.e. 100 sq.

First of all we look for a land parcel after we

have conceived a project that we believe will

work in a particular market based on market

dynamics, our brand presence, culture and

economy of that particular micro market. Some

locations we would look at retirement resorts

and others we would do group housing. We also

look to define the product mix of different sizes

(in square feet) and kinds of units (villlas, low-

rise, high-rise etc.) based on the price points we

believe will work in that particular market. We

also benchmark minimum gross profit and per

square feet margins that a project is expected to

deliver. Finally, we like to keep land costs at 20-

25% of total cost or lower and look at

minimizing risks associated with land by

entering into joint ventures with land owners.

Ashiana Housing as its stand today is the

outcome of a carefully nurtured dream whose

foundation was laid out three decades back by

my father. We have developed a number of

features that make us stand out from our

competitors including that we have focussed on

execution rather than land banking, we target a

land inventory of five to seven times current

yearly execution capacity. Our sales are driven

by end-users and not investors and therefore we

sell directly to the customers instead of going

through broker's. Also, we carry out

construction ourselves rather than contracting it

out, this allows for best cost and quality control.

Lastly, we believe in long term commitments and

stay with out customer for life by carrying out

facliities management of projects built by us.

Q. Why are your reported tax rates so low? Will

this low taxation continue for the future?

Q. One of the value system of the company is

transparency? Could you elaborate on that?

How do you plan to be transparent with the

shareholders?

We are conservative by nature. That is how my

father built the company and that is how we

want to keep it going forward. Real estate to

some extent is a very cyclical business. There are

periods of rapid growth with big price increases

followed by a slump, where prices can go down

and sales can reduce dramatically. This is what

happened in 2008 and part of 2009. Now the

market has recovered and most of us are

optimistic about the future.

Our business model is extremely capital

efficient. We try to spend small amounts in land

acquisition as we operate in locations where

land cost is a smaller component of total cost

and we also partner with land owners on a

revenue/profit share model. Since Ashiana

enjoys a very good brand name, the

construction finance requirements are met with

customer advances. This has resulted in high

return on average net worth that is reflected in

our financials.

Our tax rates are low, because most of our

projects qualify under Section 80 (IB) of IT Act,

1961 which gave Income Tax exemption to

residential projects as long as they met certain

criteria. So for the past few years we paid taxes

under MAT provisions of IT Act.

This section was applicable to projects whose

building plans were passed before March 2008

and going forward our new projects will not

have this benefit. So going forward our blended

tax rate is bound to go up. However, we have

unutilized MAT Credit of about Rs. 13.5 Cr and

this will help us keep our tax rates below the

corporate tax rate for the next couple of years.

One of our core values is transparency. We have

always tried to be transparent in our dealings and

our communications with all our stakeholders i.e.

customers, suppliers, partners, employees and

shareholders. We try to communicate on a regular

basis and provide periodic updates on the

progress of our projects. We like to be transparent

in any issues we are facing, and focus on making

sure that people are aware of what is happening in

the company.

Over the last year we have star ted

communicat ing wi th our shareholders

regularly. We give notices to BSE on a

regular basis, and are updating our

website (www.ashianahousing.com) with all the

latest financial reports. We aim to hold an analysts

conference call on a quarterly basis, the details of

which are on website and also sent to BSE. We

invite all our esteemed shareholders to log in those

calls and ask us anything that is there on their

All of us at Ashiana are proud of what we have

accomplished together. Each of us is eager to

build on that legacy of achievement and reach

new heights of success.

Q. Any message for the shareholders?

We have developed over 90 lakhs sq. ft. of area

in the last 25 years, and hope to build more than

that in the next five years. We hope to make

Ashiana one of the most trusted real estate name

in India and Utsav the largest Retirement Resort

brand in India.

We are committed to enhancing shareholder

value and pay regular dividends as cash flows

permit. We have, behind us, a proud and

distinguished legacy. We have, before us, an

exciting and successful future. We are eager to

make it happen.

Ashiana Manglam, Jaipur

CREATING

Varun GuptaWhole Time Director

Manojit Sengupta & Finance Accounts

Bhagwan KumarCompany Secretary

P. K. JaiswalBhiwadi

Sanjeev RawatJaipur/Jodhpur

Shantanu HalduleJamshedpur

S. K. PalitOperations

Manoj TyagiLavasa

Atul KumarArchitecture & Design

Ankur GuptaJt. MD

Vishal GuptaMD

Board of Directors

Organizational Structure

Anupama GulatiSales & Marketing

Kuldeep GahlaotHuman Resources

T. K. ShajuInformation &Technology

Atma SharanFacility Managment

CREATING

Varun GuptaWhole Time Director

Manojit Sengupta & Finance Accounts

Bhagwan KumarCompany Secretary

P. K. JaiswalBhiwadi

Sanjeev RawatJaipur/Jodhpur

Shantanu HalduleJamshedpur

S. K. PalitOperations

Manoj TyagiLavasa

Atul KumarArchitecture & Design

Ankur GuptaJt. MD

Vishal GuptaMD

Board of Directors

Organizational Structure

Anupama GulatiSales & Marketing

Kuldeep GahlaotHuman Resources

T. K. ShajuInformation &Technology

Atma SharanFacility Managment

KEY MANAGEMENT TEAM

The operations of the Company are overseen by a

professional management team under the guidance

of its Managing Director Vishal Gupta. The top

management team has the requisite experience and

the qualification for their respective responsibilities. A

brief profile of the top management team is as follows:

He is the Managing Director of the

Company. Mr. Vishal Gupta is a product of Sydenham

College (Mumbai) and an MBA from FORE School of

Management (Delhi) . Mr. Vishal Gupta is

acknowledged for his in depth understanding of the

real estate business, customer psychology and market

behavior. He has a great eye for detail and takes a

keen interest in the conceptualization and planning of

new housing projects for the Company. He is

associated with Ashiana for the last 14 years and

actively involved in finance, marketing, project

execution and general administration. He has been

instrumental in present growth of the company.

He is the Joint Managing Director of

the Company. Mr. Ankur Gupta is a Bachelor in

Business Administration from Fairleigh Dickinson

University (USA) and an MS in Real Estate from New

York University (USA). Mr. Ankur Gupta focused on

residential projects for senior citizens during his

Mr. Vishal Gupta

Mr. Ankur Gupta

research work at University. His experience was put to

good use at Utsav and he is now looking after

Marketing, HR & IT departments of the Company. He

has around eight years experience and is actively

associated with Ashiana for seven years.

He is the Whole Time Director of the

Company. Mr. Varun Gupta is a Bachelor in Science

from Stern School of Business, New York University

(USA). Mr. Varun Gupta majored in Finance and

Management and graduated with the high academic

distinction, 'Magna Cum Laude'. He then joined

Citigroup in Commercial Mortgage Backed Securities

where he was underwriting commercial real estate.

After a year and a half of this rich experience, he has

joined Ashiana where he is looking after Land and

Finance for the last two years.

Mr. Vishal Gupta, Mr. Ankur Gupta and

Mr. Varun Gupta are brothers in relation.

51 years, is our Vice

President. He holds a degree of Bachelor in

Engineering (Civil) and has over 24 years of

experience out of which 20 years are with Ashiana.

Mr. Jaiswal is responsible for implementation and

execution of company's projects in Bhiwadi

Mr. Varun Gupta

Mr. Pramod Kumar Jaiswal,

(Rajasthan). Mr. P.K. Jaiswal has many successful

projects in his name. Prior to Ashiana he was

associated with Vishnu Sugar Mills at senior position.

49 years, is our Vice President. He

is looking after the entire project implementation,

execution and other senior managerial work in Jaipur

and Jodhpur (Rajsthan). He had been in Indian Navy

and retired from the post of Commander. Mr. Rawat is

a Master of Science in Defence and Strategic Studies

and has around 28 years of experience. He is

associated with Ashiana for the last one year and

eight months.

42 years, is our Vice President.

He is looking after the entire project implementation,

execution and other senior managerial work in

Jamshedpur (Jharkhand). Mr. Haldule is a retired Lt.

Colonel from Indian Army. He holds a bachelors

degree in Industrial Relations and Personnel

Management and Post Graduate Diploma in

Industrial Security and Corporate Intelligence from

Ministry of Defence. Mr. Haldule has 22 years of rich

experience. In Ashiana he is new incumbent as he

joined this group on March 02, 2010.

38 years, is our Vice President. He is

looking after the entire project implementation,

execution and other senior managerial work in Lavasa

(Maharashtra). He holds the degree of Bachelor in

Technology and Post Graduate Diploma in

Management. Mr. Tyagi has around 14 years of rich

experience. Prior to Ashiana he was working with

Bharat Heavy Electricals Ltd. He joined Ashiana on

February 01, 2008.

President (Operations). He is in charge of

construction and planning activities of the company

and has 23 years of rich experience in this field. He

holds a degree in Civil Engineering. Mr. Palit was

previously employed with Hundai Corporation

(Kuwait). He is associated with Ashiana for the last 12

years.

49 years, is our Vice President

(Maintenance). Mr. Atma Sharan is a retired Colonel

from Indian Army. He is a Bachelor in Commerce. He

heads the entire maintenance team for company's

projects. He has 16 years of rich experience. He

joined Ashiana on October 15, 2007.

38 years, is the Company

Secretary of Ashiana. Mr. Kumar is an associate

member of the Institute of Company Secretary of India

and is a law graduate also. He is looking after the

Mr. Sanjeev Rawat,

Mr. Shantanu Haldule,

Mr. Manoj Tyagi,

Mr. Shyamal Kumar Palit,

Mr. Atma Sharan,

Mr. Bhagwan Kumar,

entire company secretarial work of all the group

company. He is also responsible for entire legal

affairs of the company and its associates. Mr. Kumar

has rich experience of over 14 years. He had worked

with reputed groups like Modi group of companies,

Rungta Irrigation Ltd. at a senior level. He has been

associated with Ashiana for the last 5 years.

36 years, is the General

Manager (Finance and Accounts) of the Company.

Mr. Sengupta is an associate member of the Institute of

the Chartered Accountants of India. He is looking

after the corporate finance and accounts of the

company and its associates. Mr. Sengupta has a rich

experience of 11 years. Earlier he was working with

Walltracts (I) Pvt. Ltd. He joined Ashiana on

August 12, 2008.

He is looking after the Human Resource department of

the Company. Mr. Gahlaut is a retired Colonel from

Indian Army. He holds a Master of Science degree

and Pos t Gradua te D ip loma in Bus iness

Management. Mr. Gahlaut has 22 years of rich

joined this group on January 05, 2009.

President and looks CSR activities of the Company. He

had been an army personnel retired from the post of

Colonel. He has an experience of over 33 years and in

Ashiana he has over 14 years of experience with

distinguished career. Prior to Ashiana he was

associated with the Indian Institute of Security and

Safety Management at a senior level.

66 years, is the technical

advisor of the company. Mr. Trishal holds a bachelor

degree in Engineering (Civil) and has rich experience

of 48 years. He has worked with reputed groups like

Ahluwalia Constructions (I) Ltd. He has been

associated with Ashiana for the last two years.

62 years, is senior consultant on the

panel of the company. Mr. Sengupta holds a bachelor

degree in architect and has rich experience of over 40

years. He has been associated with Ashiana for over

23 years.

57 years, is the architect advisor of

the company. Mr. Kumar holds a bachelor degree in

Architect and has rich experience of 34 years. He has

been associated with Ashiana for the last two years.

Mr. Manojit Sengupta,

Mr. Kuldeep Gahlaut,

Mr. Ashok Gongopadhyay,

Key Management Consultants

Mr. Sushil Kumar Trishal,

Mr. B. Sengupta,

Mr. Atul Kumar,

CREATING

KEY MANAGEMENT TEAM

The operations of the Company are overseen by a

professional management team under the guidance

of its Managing Director Vishal Gupta. The top

management team has the requisite experience and

the qualification for their respective responsibilities. A

brief profile of the top management team is as follows:

He is the Managing Director of the

Company. Mr. Vishal Gupta is a product of Sydenham

College (Mumbai) and an MBA from FORE School of

Management (Delhi) . Mr. Vishal Gupta is

acknowledged for his in depth understanding of the

real estate business, customer psychology and market

behavior. He has a great eye for detail and takes a

keen interest in the conceptualization and planning of

new housing projects for the Company. He is

associated with Ashiana for the last 14 years and

actively involved in finance, marketing, project

execution and general administration. He has been

instrumental in present growth of the company.

He is the Joint Managing Director of

the Company. Mr. Ankur Gupta is a Bachelor in

Business Administration from Fairleigh Dickinson

University (USA) and an MS in Real Estate from New

York University (USA). Mr. Ankur Gupta focused on

residential projects for senior citizens during his

Mr. Vishal Gupta

Mr. Ankur Gupta

research work at University. His experience was put to

good use at Utsav and he is now looking after

Marketing, HR & IT departments of the Company. He

has around eight years experience and is actively

associated with Ashiana for seven years.

He is the Whole Time Director of the

Company. Mr. Varun Gupta is a Bachelor in Science

from Stern School of Business, New York University

(USA). Mr. Varun Gupta majored in Finance and

Management and graduated with the high academic

distinction, 'Magna Cum Laude'. He then joined

Citigroup in Commercial Mortgage Backed Securities

where he was underwriting commercial real estate.

After a year and a half of this rich experience, he has

joined Ashiana where he is looking after Land and

Finance for the last two years.

Mr. Vishal Gupta, Mr. Ankur Gupta and

Mr. Varun Gupta are brothers in relation.

President. He holds a degree of Bachelor in

Engineering (Civil) and has over 24 years of

experience out of which 20 years are with Ashiana.

Mr. Jaiswal is responsible for implementation and

execution of company's projects in Bhiwadi

Mr. Varun Gupta

Mr. Pramod Kumar Jaiswal,

(Rajasthan). Mr. P.K. Jaiswal has many successful

projects in his name. Prior to Ashiana he was

associated with Vishnu Sugar Mills at senior position.

49 years, is our Vice President. He

is looking after the entire project implementation,

execution and other senior managerial work in Jaipur

and Jodhpur (Rajsthan). He had been in Indian Navy

and retired from the post of Commander. Mr. Rawat is

a Master of Science in Defence and Strategic Studies

and has around 28 years of experience. He is

associated with Ashiana for the last one year and

eight months.

He is looking after the entire project implementation,

execution and other senior managerial work in

Jamshedpur (Jharkhand). Mr. Haldule is a retired Lt.

Colonel from Indian Army. He holds a bachelors

degree in Industrial Relations and Personnel

Management and Post Graduate Diploma in

Industrial Security and Corporate Intelligence from

Ministry of Defence. Mr. Haldule has 22 years of rich

joined this group on March 02, 2010.

38 years, is our Vice President. He is

looking after the entire project implementation,

execution and other senior managerial work in Lavasa

(Maharashtra). He holds the degree of Bachelor in

Technology and Post Graduate Diploma in

Management. Mr. Tyagi has around 14 years of rich

experience. Prior to Ashiana he was working with

Bharat Heavy Electricals Ltd. He joined Ashiana on

February 01, 2008.

President (Operations). He is in charge of

construction and planning activities of the company

and has 23 years of rich experience in this field. He

holds a degree in Civil Engineering. Mr. Palit was

previously employed with Hundai Corporation

(Kuwait). He is associated with Ashiana for the last 12

years.

49 years, is our Vice President

(Maintenance). Mr. Atma Sharan is a retired Colonel

from Indian Army. He is a Bachelor in Commerce. He

heads the entire maintenance team for company's

projects. He has 16 years of rich experience. He

joined Ashiana on October 15, 2007.

38 years, is the Company

Secretary of Ashiana. Mr. Kumar is an associate

member of the Institute of Company Secretary of India

and is a law graduate also. He is looking after the

Mr. Sanjeev Rawat,

Mr. Shantanu Haldule,

Mr. Manoj Tyagi,

Mr. Shyamal Kumar Palit,

Mr. Atma Sharan,

Mr. Bhagwan Kumar,

entire company secretarial work of all the group

company. He is also responsible for entire legal

affairs of the company and its associates. Mr. Kumar

has rich experience of over 14 years. He had worked

with reputed groups like Modi group of companies,

Rungta Irrigation Ltd. at a senior level. He has been

associated with Ashiana for the last 5 years.

36 years, is the General

Manager (Finance and Accounts) of the Company.

Mr. Sengupta is an associate member of the Institute of

the Chartered Accountants of India. He is looking

after the corporate finance and accounts of the

company and its associates. Mr. Sengupta has a rich

experience of 11 years. Earlier he was working with

Walltracts (I) Pvt. Ltd. He joined Ashiana on

August 12, 2008.

He is looking after the Human Resource department of

the Company. Mr. Gahlaut is a retired Colonel from

Indian Army. He holds a Master of Science degree

and Pos t Gradua te D ip loma in Bus iness

Management. Mr. Gahlaut has 22 years of rich

joined this group on January 05, 2009.

President and looks CSR activities of the Company. He

had been an army personnel retired from the post of

Colonel. He has an experience of over 33 years and in

Ashiana he has over 14 years of experience with

distinguished career. Prior to Ashiana he was

associated with the Indian Institute of Security and

Safety Management at a senior level.

66 years, is the technical

advisor of the company. Mr. Trishal holds a bachelor

degree in Engineering (Civil) and has rich experience

of 48 years. He has worked with reputed groups like

Ahluwalia Constructions (I) Ltd. He has been

associated with Ashiana for the last two years.

62 years, is senior consultant on the

panel of the company. Mr. Sengupta holds a bachelor

degree in architect and has rich experience of over 40

years. He has been associated with Ashiana for over

23 years.

57 years, is the architect advisor of

the company. Mr. Kumar holds a bachelor degree in

Architect and has rich experience of 34 years. He has

been associated with Ashiana for the last two years.

Mr. Manojit Sengupta,

Mr. Kuldeep Gahlaut,

Mr. Ashok Gongopadhyay,

Key Management Consultants

Mr. Sushil Kumar Trishal,

Mr. B. Sengupta,

Mr. Atul Kumar,

CREATING

OMPANY INFORMATION

Company Secretary .................................................................

Auditors .................................................................................

Registered Office .....................................................................

Head Office ............................................................................

Bankers ..................................................................................

Website ..................................................................................

Registrar & Share Transfer Agent ..............................................

Bhagwan Kumar

M/s. B. Chhawchharia & Co., K-3/27, DLF City,

Phase-II, Gurgaon, Haryana – 122 002

5F Eve res t , 46/C, Chowringhee Road,

Kolkata – 700 071. Ph: (033) 2288 4774

304, Southern Park, Saket District Centre, Saket,

New Delhi – 110 017. Ph: (011) 4265 4265,

Fax: (011) 4265 4200

HDFC Bank Ltd., State Bank of Bikaner & Jaipur,

Punjab National Bank, Kotak Mahindra Bank

www.ashianahousing.com

M/s. Beetal Financial & Computer Services Pvt. Ltd.

Beetal House, 99, Madangir, Behind Local Shopping

Centre, Near Dada Harsukh Dass Mandir,

New Delhi – 110 062. Ph: (011) 2996 1281 - 82,

Fax: (011) 2996 1284

25Annual Report 2009-2010

BOARD OF DIRECTORS

VISHAL GUPTA ANKUR GUPTA

VARUN GUPTA

ASHOK MATTOO ABHISHEK DALMIA

LALIT KUMAR CHHAWCHHARIA

SONAL MATTOO

(Managing Director), (Joint Managing Director)

(Whole Time Director)

(Independent Director), (Independent Director)

(Independent Director)

A ASHIANA HOUSING

LIMITED

OMPANY INFORMATION

Company Secretary .................................................................

Auditors .................................................................................

Registered Office .....................................................................

Head Office ............................................................................

Bankers ..................................................................................

Website ..................................................................................

Registrar & Share Transfer Agent ..............................................

Bhagwan Kumar

M/s. B. Chhawchharia & Co., K-3/27, DLF City,

Phase-II, Gurgaon, Haryana – 122 002

5F Eve res t , 46/C, Chowringhee Road,

Kolkata – 700 071. Ph: (033) 2288 4774

304, Southern Park, Saket District Centre, Saket,

New Delhi – 110 017. Ph: (011) 4265 4265,

Fax: (011) 4265 4200

HDFC Bank Ltd., State Bank of Bikaner & Jaipur,

Punjab National Bank, Kotak Mahindra Bank

www.ashianahousing.com

M/s. Beetal Financial & Computer Services Pvt. Ltd.

Beetal House, 99, Madangir, Behind Local Shopping

Centre, Near Dada Harsukh Dass Mandir,

New Delhi – 110 062. Ph: (011) 2996 1281 - 82,

Fax: (011) 2996 1284

BOARD OF DIRECTORS

VISHAL GUPTA ANKUR GUPTA

VARUN GUPTA

ASHOK MATTOO ABHISHEK DALMIA

LALIT KUMAR CHHAWCHHARIA

SONAL MATTOO

(Managing Director), (Joint Managing Director)

(Whole Time Director)

(Independent Director), (Independent Director)

(Independent Director)

A ASHIANA HOUSING

LIMITED

27Annual Report 2009-201026 Ashiana Housing Ltd.

B R I E F PRO F I L E O F D I R E C TO R S S E E K I N G

APPOINTMENT/RE-APPOINTMENT AT THE 24TH

ANNUAL GENERAL MEETING AS REQUIRED IN TERMS

OF CLAUSE 49 OF THE LISTING AGREEMENT.

1. Shri Ashok Kumar Mattoo

As per provisions of the Companies Act, 1956 facility

for making nominations is available to the

shareholders in respect of the shares held by them.

Nomination forms can be obtained from the

Registrar and Share Transfer Agent of the Company.

Members who have not yet encashed their dividend

warrant(s) for the financial year ended 31.03.2004,

31.03.2005, 31.03.2006, 31.03.2007 and

31.03.2008 are requested to make their claims to

the Company, without any delay.

At the ensuing Annual General Meeting Shri Ashok

Kumar Mattoo and Shri Abhishek Dalmia shall retire by

rotation and being eligible offer themselves for re-

appointment. A brief profile of above directors under

Corporate Governance Code is as under:

Shri Ashok Kumar Mattoo is a Non Executive &

Independent Director. He is 66 years old. He is a

By order of the Board

Bhagwan Kumar

Company Secretary

Date: May 29, 2010

Place: New Delhi

mechanical engineer having more than 42 years of vast

experience in administration, project planning, project

execution, maintenance and operations. He has served

in major organisations like Border Roads, Bharat Heavy

Electricals (BHEL) and Tata Steel. As Deputy Director and

Director Town Services he maintained the municipal

services for Jamshedpur. Mr. Mattoo has also served as

the Chairman of Jamshedpur Notified Area Committee.

He is also director on the Boards of Vatika Marketing

Ltd., Ashiana Retirement Villages Ltd. and Security and

Intelligence Services (I) Ltd. He is also a member of Audit

Committee and Chairman of Remuneration Committee

of the Company.

Shri Abhishek Dalmia is a Chartered Accountant. He is

41 years of age. He belongs to well known Industrial

House. He has a brilliant educational as well as

professional track record. He is having more than 19

years of rich experience of different organisations at

different position. He worked for Capital Ideas India Ltd.,

OCL India Ltd., Khammam Granite India Ltd. at a very

senior position and presently heading as CEO of

Renaissance Group. He is also director on the Boards of

Revathi Equipment Ltd., Revathi Drilling & Mining Ltd.,

Rajratan Global Wire Ltd., Saffron Agencies Ltd.,

Shogun Organics Ltd., Utkal Investments Ltd.,

Renaissance Stocks Ltd., Netcarrots.com Pvt. Ltd., Asra

Plantations Pvt. Ltd., Sohna Agri Farms Pvt. Ltd.,

Priyadarshanay Agri Farms Pvt. Ltd., Sunglow

Agriculture Farms Pvt. Ltd., Monarch Catalyst Pvt. Ltd.,

Potential Service Consultants Pvt. Ltd., Renaissance Asset

Management Company Pvt. Ltd., Semac Pvt. Ltd.

Presently he does not hold any share in Ashiana Housing

2. Shri Abhishek Dalmia

NOTICE is hereby given that the 24th Annual General

Meeting of the members of M/s. ASHIANA HOUSING

LIMITED will be held on Friday, August 20, 2010 at

‘Kalakunj’ (Basement Kalamandir) 48, Shakespeare

Sarani, Kolkata - 700 017 at 11:00 A.M. to consider

and transact the following business:

ORDINARY BUSINESS:

NOTES:

�A MEMBER ENTITLED TO ATTEND AND VOTE AT

THE MEETING IS ENTITLED TO APPOINT A PROXY

TO AT T E N D A N D VOT E I NST EA D O F

HIMSELF/HERSELF AND THE PROXY NEED NOT BE

A MEMBER OF THE COMPANY.

To receive, consider and adopt the Audited Balance

Sheet as at March 31, 2010, the Profit & Loss

Account for the year ended on that date and the

Report of the Board of Directors' and Auditors'

thereon.

To declare dividend.

To appoint a Director in place of Shri Ashok Kumar

Mattoo, who retires by rotation and being eligible for

re-appointment.

To appoint a Director in place of Shri Abhishek

Dalmia, who retires by rotation and being eligible for

re-appointment.

To appoint Auditors and fix their remuneration.

Proxy form duly filled up and executed must be

received at the Registered Office of the Company not

less than 48 hours before the time fixed for the

meeting.

The relevant details of directors seeking

appointment/ re-appointment as required by clause

49 of the Listing Agreement entered into with the

Stock Exchange are annexed.

The Register of Members and Share Transfer Books

shall remain closed from August 16, 2010 to August

20, 2010 (both days inclusive).

If the resolution relating to dividend on equity shares as

recommended by the Board of directors is passed at

the meeting, payment of such dividend shall be made

on or after August 20, 2010 to those members whose

names are on the Company’s register of members on

August 20, 2010. In respect of shares held in

electronic form, the dividend will be payable to the

beneficial owners as at the end of business hours on

August 14, 2010 as per details furnished by the

depositories for this purpose.

Members holding shares in electronic form may note

that: (a) the dividend, when declared will be credited

to their respective Bank Accounts as furnished to the

respective Depository Participants, through Electronic

Clearing Service (ECS), where this facility is

available; (b) in other cases bank details as furnished

to the respective Depository Participants will be

printed on the dividend warrants as per the

applicable regulations. The Company shall not

entertain any direct request from such members for

deletion of/change of such bank details. Further, it

may noted that instructions, if any, already given by

the members in respect of shares held in physical

form will not automatically applicable to the dividend

paid on their holdings in electronic form.

Members desiring any further information on the

business to be transacted at the Meeting should write

to the Company at least 15 days before the date of the

meeting so as to enable the management to keep the

information, as far as possible, ready at the meeting.

Members are requested to notify the Company their

change of address, if any, to its Head Office at Unit

No. 4&5, 3rd Floor, Plot No. D-2, Southern Park, Saket

District Center, Saket, New Delhi – 1100 17, or to the

Registrar & Share Transfer Agent of the Company,

M/s. Beetal Financial & Computer Services (Pvt.) Ltd.,

99, Madangir, Behind Local Shopping Centre, Near

Dada Harsukh Dass Mandir, New Delhi - 110 062.

Members are requested to bring their copy of the

Annual Report with them at the Annual General

Meeting.

All correspondence relating to shares may be

addressed to the Head office of the Company or to

the Registrar & Share Transfer Agent of the Company.

Members holding shares in more than one folio in

identical order of names are requested to write to

Registrar and Share Transfer Agent enclosing their

share certificates to enable them to consolidate the

holdings in one folio to facilitate better service.

B R I E F PRO F I L E O F D I R E C TO R S S E E K I N G

APPOINTMENT/RE-APPOINTMENT AT THE 24TH

ANNUAL GENERAL MEETING AS REQUIRED IN TERMS

OF CLAUSE 49 OF THE LISTING AGREEMENT.

1. Shri Ashok Kumar Mattoo

As per provisions of the Companies Act, 1956 facility

for making nominations is available to the

shareholders in respect of the shares held by them.

Nomination forms can be obtained from the

Registrar and Share Transfer Agent of the Company.

Members who have not yet encashed their dividend

warrant(s) for the financial year ended 31.03.2004,

31.03.2005, 31.03.2006, 31.03.2007 and

31.03.2008 are requested to make their claims to

the Company, without any delay.

At the ensuing Annual General Meeting Shri Ashok

Kumar Mattoo and Shri Abhishek Dalmia shall retire by

rotation and being eligible offer themselves for re-

appointment. A brief profile of above directors under

Corporate Governance Code is as under:

Shri Ashok Kumar Mattoo is a Non Executive &

Independent Director. He is 66 years old. He is a

By order of the Board

Bhagwan Kumar

Company Secretary

Date: May 29, 2010

Place: New Delhi

mechanical engineer having more than 42 years of vast

experience in administration, project planning, project

execution, maintenance and operations. He has served

in major organisations like Border Roads, Bharat Heavy

Electricals (BHEL) and Tata Steel. As Deputy Director and

Director Town Services he maintained the municipal

services for Jamshedpur. Mr. Mattoo has also served as

the Chairman of Jamshedpur Notified Area Committee.

He is also director on the Boards of Vatika Marketing

Ltd., Ashiana Retirement Villages Ltd. and Security and

Intelligence Services (I) Ltd. He is also a member of Audit

Committee and Chairman of Remuneration Committee

of the Company.

Shri Abhishek Dalmia is a Chartered Accountant. He is

41 years of age. He belongs to well known Industrial

House. He has a brilliant educational as well as

professional track record. He is having more than 19

years of rich experience of different organisations at

different position. He worked for Capital Ideas India Ltd.,

OCL India Ltd., Khammam Granite India Ltd. at a very

senior position and presently heading as CEO of

Renaissance Group. He is also director on the Boards of

Revathi Equipment Ltd., Revathi Drilling & Mining Ltd.,

Rajratan Global Wire Ltd., Saffron Agencies Ltd.,

Shogun Organics Ltd., Utkal Investments Ltd.,

Renaissance Stocks Ltd., Netcarrots.com Pvt. Ltd., Asra

Plantations Pvt. Ltd., Sohna Agri Farms Pvt. Ltd.,

Priyadarshanay Agri Farms Pvt. Ltd., Sunglow

Agriculture Farms Pvt. Ltd., Monarch Catalyst Pvt. Ltd.,

Potential Service Consultants Pvt. Ltd., Renaissance Asset

Management Company Pvt. Ltd., Semac Pvt. Ltd.

Presently he does not hold any share in Ashiana Housing

2. Shri Abhishek Dalmia

NOTICE is hereby given that the 24th Annual General

Meeting of the members of M/s. ASHIANA HOUSING

LIMITED will be held on Friday, August 20, 2010 at

‘Kalakunj’ (Basement Kalamandir) 48, Shakespeare

Sarani, Kolkata - 700 017 at 11:00 A.M. to consider

and transact the following business:

ORDINARY BUSINESS:

NOTES:

�A MEMBER ENTITLED TO ATTEND AND VOTE AT

THE MEETING IS ENTITLED TO APPOINT A PROXY

TO AT T E N D A N D VOT E I NST EA D O F

HIMSELF/HERSELF AND THE PROXY NEED NOT BE

A MEMBER OF THE COMPANY.

To receive, consider and adopt the Audited Balance

Sheet as at March 31, 2010, the Profit & Loss

Account for the year ended on that date and the

Report of the Board of Directors' and Auditors'

thereon.

To declare dividend.

To appoint a Director in place of Shri Ashok Kumar

Mattoo, who retires by rotation and being eligible for

re-appointment.

To appoint a Director in place of Shri Abhishek

Dalmia, who retires by rotation and being eligible for

re-appointment.

To appoint Auditors and fix their remuneration.

Proxy form duly filled up and executed must be

received at the Registered Office of the Company not

less than 48 hours before the time fixed for the

meeting.

The relevant details of directors seeking

appointment/ re-appointment as required by clause

49 of the Listing Agreement entered into with the

Stock Exchange are annexed.

The Register of Members and Share Transfer Books

shall remain closed from August 16, 2010 to August

20, 2010 (both days inclusive).

If the resolution relating to dividend on equity shares as

recommended by the Board of directors is passed at

the meeting, payment of such dividend shall be made

on or after August 20, 2010 to those members whose

names are on the Company’s register of members on

August 20, 2010. In respect of shares held in

electronic form, the dividend will be payable to the

beneficial owners as at the end of business hours on

August 14, 2010 as per details furnished by the

depositories for this purpose.

Members holding shares in electronic form may note

that: (a) the dividend, when declared will be credited

to their respective Bank Accounts as furnished to the

respective Depository Participants, through Electronic

Clearing Service (ECS), where this facility is

available; (b) in other cases bank details as furnished

to the respective Depository Participants will be

printed on the dividend warrants as per the

applicable regulations. The Company shall not

entertain any direct request from such members for

deletion of/change of such bank details. Further, it

may noted that instructions, if any, already given by

the members in respect of shares held in physical

form will not automatically applicable to the dividend

paid on their holdings in electronic form.

Members desiring any further information on the

business to be transacted at the Meeting should write

to the Company at least 15 days before the date of the

meeting so as to enable the management to keep the

information, as far as possible, ready at the meeting.

Members are requested to notify the Company their

change of address, if any, to its Head Office at Unit

No. 4&5, 3rd Floor, Plot No. D-2, Southern Park, Saket

District Center, Saket, New Delhi – 1100 17, or to the

Registrar & Share Transfer Agent of the Company,

M/s. Beetal Financial & Computer Services (Pvt.) Ltd.,

99, Madangir, Behind Local Shopping Centre, Near

Dada Harsukh Dass Mandir, New Delhi - 110 062.

Members are requested to bring their copy of the

Annual Report with them at the Annual General

Meeting.

All correspondence relating to shares may be

addressed to the Head office of the Company or to

the Registrar & Share Transfer Agent of the Company.

Members holding shares in more than one folio in

identical order of names are requested to write to

Registrar and Share Transfer Agent enclosing their

share certificates to enable them to consolidate the

holdings in one folio to facilitate better service.

D IRECTOR’S REPORT

TO THE MEMBER(S),

1. FINANCIAL RESULTS

Your directors have pleasure in presenting the 24th Annual

Report together with the audited statement of accounts for

the year ending March 31, 2010.

The financial results of the Company for the year ended

March 31, 2010 are as follows:-

Sl.No.

Particulars Current Year Previous Year

(Rs.) In Lakhs (Rs.) In Lakhs

1. Sales and other Income 11,101.32 9,341.67

2. Profit before Depreciation 4,405.90 3,015.36

3. Depreciation 101.67 100.72

4. Profit after Depreciation but 4,304.23 2,914.64

before Taxation

5. Provision for Taxation 763.73 316.86

6. Profit after Depreciation and 3,540.50 2,597.79

Taxation

7. Surplus brought forward from 199.79 102.00

previous year

8. Profit available for Appropriation 3,740.29 2,699.79

9. Proposed Dividend 281.04 0.00

10. Tax on Proposed Dividend 26.35 0.00

11. Transfer to General Reserve 3,200.00 2,500.00

12. Balance Surplus carried to Balance 232.91 199.79

Financial Year 2009-10 witnessed a recovery in demand

almost in every sector of the economy. Amongst all the

sectors of the economy the real estate sector was the worst

sufferer during the financial year 2008-09. However this

sector is recovering quietly this financial year.

The turnover of the Company during the financial year

2009-10 was Rs. 11,101.32 lakhs as compare to

Rs. 9,341.67 lakhs during the previous financial year

representing a growth of 19% and net profit was at

Rs. 3,540.50 lakhs compared to 2,597.79 lakhs

recording a growth of 36.29%.

On Consolidated basis, during the year 2009-10 the total

income of your company and its subsidiaries was at

Rs. 12,102.91 as against Rs. 10,401.04 lakhs during the

previous year. Further, the consolidated net profit was at

Rs. 3,676.96 as compared to Rs. 2,839.88 in the previous

year ended March 31, 2009.

A brief summary of on-going projects

Operations

Project Name

Location

Type Saleable Area

Area Booked

as on 31/03/2010

Ashiana Group 20.62 9.70

Aangan, Housing

Bhiwadi

Village Retail & 1.00 N.A.

Centre, Hotel

Bhiwadi

Utsav,* Retirement 3.88 0.77

Jaipur Resort

Greenwood,* Housing

Jaipur

Brahmananda, Housing

Jamshedpur

Amarbagh,* Housing

Jodhpur

Utsav, Retirement 6.87 1.12

Lavasa Resort

Rangoli Group 25.00 0.40

Gardens,* Housing

Jaipur

Total 71.11 16.59

A brief summary of future projects

Milakpur Land,

Bhiwadi 40.63 31.0 Group Housing

& Retirement

Resort

Tanawada Land,

Vill Tanawada,

Jodhpur 10.92 4.7 Group Housing

Marine Plaza,

Sonari, Jodhpur 1.95 1.7 Retail & Hotel

Ashiana Amar

Infrastructure,

Pali Road,

Jodhpur 4.02 1.0 Retail & Hotel

Total 57.52 38.4

Proposed

Development

Land Name and

Location

Land Area (Acres) Estimated SaleableArea

(Lakhs in Sq. Ft.)

2. SECTION 80 (IB) PROJECTS

Sl. Project Name

3. DIVIDEND

4. FURTHER ISSUE OF SHARES

5. DIRECTORS

6. AUDITORS

Your Directors have pleasure in reporting that following

projects are eligible for claiming deduction under

Section 80 (IB) of the Income Tax Act, 1961:

Ashiana Aangan, (Bhiwadi)

Ashiana Manglam, (Jaipur)

Ashiana Utsav, (Jaipur)

Ashiana Greenwood, (Jaipur)

Ashiana Amarbagh, (Jodhpur)

The Board of Directors of the Company has

recommended dividend @ of 15% i.e. Rs. 1.5 (Rupee

One and Fifty Paisa) per equity share of the company for

the Financial Year 2009-10.

The Board of directors of the Company vide its resolution

passed by circulation dated May 18, 2010 have

decided not to proceed with the proposed right issue of

the equity shares of the Company.

There are seven directors on the Board of the Company

and there is no change in the directorship during the

year under review. The term of Shri Om Prakash Gupta,

Managing Director of the company, has expired on

March 31, 2010. He further stepped down from the

directorship of the Company. Later he was appointed as

Chairman Emeritus by the Board of directors of the

Company.

Shri Ashok Kumar Mattoo and Shri Abhishek Dalmia,

Directors are retiring by rotation at the ensuing Annual

General Meeting of the Company and are eligible for

re-appointment.

M/s. B. Chhawchharia & Co., Chartered Accountants,

Auditors of the Company, retires at the conclusion of

ensuing Annual General Meeting and being eligible, offer

them for re-appointment. The Company has received a

Certificate to the effect that their re-appointment, if made,

will be within the prescribed limit under Section 224 (1B)

of the Companies Act, 1956. The Directors and the Audit

Committee recommends their re-appointment.

The Company had neither invited nor accepted any

deposits from the public within the meaning of the

Companies (Acceptance of Deposits) Rules 1975.

As on date there are two subsidiaries of the Company

namely Vatika Marketing Ltd. and Ashiana Retirement

Villages Ltd.

The Audited statement of Accounts along with Directors'

Report & Auditors' Report for the year ended March 31,

2010 of M/s. Vatika Marketing Ltd. and M/s. Ashiana

Retirement Villages Limited as well as the extent of

holdings therein are annexed to this Account pursuant to

Section 212 of the Companies Act, 1956. Further, in

accordance with Accounting Standard – 21, a

consolidated Financial Statement of the Company and

its subsidiaries forms part of this Annual Report.

The Annual Report also contains a separate section on

the ‘Management Discussion and Analysis’ which is a

part of the Directors’ Report.

As required under clause 49 of the Listing Agreement

with the Stock Exchanges, the Report on Corporate

Governance together with Auditors Certificate

regarding Compliance of the SEBI Code of Corporate

Governance is annexed herewith.

A certificate from M/s. B. Chhawchharia & Co.,

Chartered Accountants confirming compliance of

conditions of corporate governance as stipulated under

clause 49 is also annexed to the Report on Corporate

Governance.

Your Directors are of the opinion that particulars with

respect to Conservation of Energy and Technology

Absorption as per Section 217 (1) (e) of the Companies

Act, 1956 read with the Companies (Disclosure of

Particulars in the Report of the Board of Directors) Rules,

1988 are not relevant in view of the nature of business

activities of the company and hence, are not required to

be given. There have been no foreign exchange

earnings whereas expenditure of Rs. 13,86,446/-

(Rupees Thirteen Lakhs Eighty Six Thousand Four

7. FIXED DEPOSITS

8. SUBSIDIARY COMPANIES

9. MANAGEMENT DISCUSSION AND ANALYSIS REPORT

10. CORPORATE GOVERNANCE

11. PARTICULARS OF CONSERVATION OF ENERGY,

TECHNOLOGY ABSORPTION AND FOREIGN

EXCHANGE EARNINGS AND OUTGO

* In partnership

D IRECTOR’S REPORT

TO THE MEMBER(S),

1. FINANCIAL RESULTS

Your directors have pleasure in presenting the 24th Annual

Report together with the audited statement of accounts for

the year ending March 31, 2010.

The financial results of the Company for the year ended

March 31, 2010 are as follows:-

Sl.No.

Particulars Current Year Previous Year

(Rs.) In Lakhs (Rs.) In Lakhs

1. Sales and other Income 11,101.32 9,341.67

2. Profit before Depreciation 4,405.90 3,015.36

3. Depreciation 101.67 100.72

4. Profit after Depreciation but 4,304.23 2,914.64

before Taxation

5. Provision for Taxation 763.73 316.86

6. Profit after Depreciation and 3,540.50 2,597.79

Taxation

7. Surplus brought forward from 199.79 102.00

previous year

8. Profit available for Appropriation 3,740.29 2,699.79

9. Proposed Dividend 281.04 0.00

10. Tax on Proposed Dividend 26.35 0.00

11. Transfer to General Reserve 3,200.00 2,500.00

12. Balance Surplus carried to Balance 232.91 199.79

Financial Year 2009-10 witnessed a recovery in demand

almost in every sector of the economy. Amongst all the

sectors of the economy the real estate sector was the worst

sufferer during the financial year 2008-09. However this

sector is recovering quietly this financial year.

The turnover of the Company during the financial year

2009-10 was Rs. 11,101.32 lakhs as compare to

Rs. 9,341.67 lakhs during the previous financial year

representing a growth of 19% and net profit was at

Rs. 3,540.50 lakhs compared to 2,597.79 lakhs

recording a growth of 36.29%.

On Consolidated basis, during the year 2009-10 the total

income of your company and its subsidiaries was at

Rs. 12,102.91 as against Rs. 10,401.04 lakhs during the

previous year. Further, the consolidated net profit was at

Rs. 3,676.96 as compared to Rs. 2,839.88 in the previous

year ended March 31, 2009.

A brief summary of on-going projects

Operations

Project Name

Location

Type Saleable Area

Area Booked

as on 31/03/2010

Aangan, Housing

Bhiwadi

Village Retail & 1.00 N.A.

Centre, Hotel

Bhiwadi

Utsav,* Retirement 3.88 0.77

Jaipur Resort

Greenwood,* Housing

Jaipur

Brahmananda, Housing

Jamshedpur

Amarbagh,* Housing

Jodhpur

Utsav, Retirement 6.87 1.12

Lavasa Resort

Rangoli Group 25.00 0.40

Gardens,* Housing

Jaipur

Total 71.11 16.59

A brief summary of future projects

Milakpur Land,

Bhiwadi 40.63 31.0 Group Housing

& Retirement

Resort

Tanawada Land,

Vill Tanawada,

Jodhpur 10.92 4.7 Group Housing

Marine Plaza,

Sonari, Jodhpur 1.95 1.7 Retail & Hotel

Ashiana Amar

Infrastructure,

Pali Road,

Jodhpur 4.02 1.0 Retail & Hotel

Total 57.52 38.4

Proposed

Development

Land Name and

Location

Land Area (Acres) Estimated SaleableArea

(Lakhs in Sq. Ft.)

2. SECTION 80 (IB) PROJECTS

Sl. Project Name

3. DIVIDEND

4. FURTHER ISSUE OF SHARES

5. DIRECTORS

6. AUDITORS

Your Directors have pleasure in reporting that following

projects are eligible for claiming deduction under

Section 80 (IB) of the Income Tax Act, 1961:

Ashiana Aangan, (Bhiwadi)

Ashiana Manglam, (Jaipur)

Ashiana Utsav, (Jaipur)

Ashiana Greenwood, (Jaipur)

Ashiana Amarbagh, (Jodhpur)

The Board of Directors of the Company has

recommended dividend @ of 15% i.e. Rs. 1.5 (Rupee

One and Fifty Paisa) per equity share of the company for

the Financial Year 2009-10.

The Board of directors of the Company vide its resolution

passed by circulation dated May 18, 2010 have

decided not to proceed with the proposed right issue of

the equity shares of the Company.

There are seven directors on the Board of the Company

and there is no change in the directorship during the

year under review. The term of Shri Om Prakash Gupta,

Managing Director of the company, has expired on

March 31, 2010. He further stepped down from the

directorship of the Company. Later he was appointed as

Chairman Emeritus by the Board of directors of the

Company.

Shri Ashok Kumar Mattoo and Shri Abhishek Dalmia,

Directors are retiring by rotation at the ensuing Annual

General Meeting of the Company and are eligible for

re-appointment.

Auditors of the Company, retires at the conclusion of

ensuing Annual General Meeting and being eligible, offer

them for re-appointment. The Company has received a

Certificate to the effect that their re-appointment, if made,

will be within the prescribed limit under Section 224 (1B)

of the Companies Act, 1956. The Directors and the Audit

Committee recommends their re-appointment.

Companies (Acceptance of Deposits) Rules 1975.

As on date there are two subsidiaries of the Company

namely Vatika Marketing Ltd. and Ashiana Retirement

Villages Ltd.

The Audited statement of Accounts along with Directors'

Report & Auditors' Report for the year ended March 31,

2010 of M/s. Vatika Marketing Ltd. and M/s. Ashiana

Retirement Villages Limited as well as the extent of

holdings therein are annexed to this Account pursuant to

Section 212 of the Companies Act, 1956. Further, in

accordance with Accounting Standard – 21, a

consolidated Financial Statement of the Company and

its subsidiaries forms part of this Annual Report.

The Annual Report also contains a separate section on

the ‘Management Discussion and Analysis’ which is a

part of the Directors’ Report.

As required under clause 49 of the Listing Agreement

with the Stock Exchanges, the Report on Corporate

Governance together with Auditors Certificate

regarding Compliance of the SEBI Code of Corporate

Governance is annexed herewith.

A certificate from M/s. B. Chhawchharia & Co.,

Chartered Accountants confirming compliance of

conditions of corporate governance as stipulated under

clause 49 is also annexed to the Report on Corporate

Governance.

Your Directors are of the opinion that particulars with

respect to Conservation of Energy and Technology

Absorption as per Section 217 (1) (e) of the Companies

Act, 1956 read with the Companies (Disclosure of

Particulars in the Report of the Board of Directors) Rules,

1988 are not relevant in view of the nature of business

activities of the company and hence, are not required to

be given. There have been no foreign exchange

earnings whereas expenditure of Rs. 13,86,446/-

(Rupees Thirteen Lakhs Eighty Six Thousand Four

7. FIXED DEPOSITS

8. SUBSIDIARY COMPANIES

9. MANAGEMENT DISCUSSION AND ANALYSIS REPORT

10. CORPORATE GOVERNANCE

11. PARTICULARS OF CONSERVATION OF ENERGY,

* In partnership

MANAGEMENT DISCUSSION

& ANALYSIS

CREATING

1. ECONOMY

Although the situation is more reassuring than it was a

quarter ago, uncertainty about the shape and pace of

global recovery persists. Private spending in advanced

economies continues to be constrained and inflation

remains generally subdued making it likely that fiscal

and monetary stimuli in these economies will continue for

an extended period. Emerging market economies

(EMEs) are significantly ahead on the recovery curve, but

some of them are also facing inflationary pressures.

India's growth-inflation dynamics are in contrast to the

overall global scenario. As per the advance estimates of

GDP for 2009-10 released by the Central Statistical

Organization (CSO), the economy is expected to grow

at 7.2 per cent in 2009-10, with the industrial and the

service sectors growing at 8.2 and 8.7 per cent

respectively.

The economic activities which registered significant

growth in the third quarter of 2009-10 over the

corresponding period in 2008-09 are 'mining and

quarrying' at 9.6 per cent, 'manufacturing' at 14.3 per

cent, 'construction' at 8.7 per cent, 'trade, hotels,

transport and communication' at 10 per cent and

'financing, insurance, real estate and business services'

at 7.8 per cent. The key indicators of construction sector,

namely, cement and finished steel registered growth

rates of 8.5 per cent and 7.7 per cent, respectively in Q3

2009-10.

Further, the fast growth displayed by the Indian economy

was indicative of its inherent strength. The resilience and

dynamism displayed by MSMEs have in these

challenging times shown the critical role of this vibrant

sector. Reserve Bank's Survey of Professional Forecasters

suggests (median) growth for 2010-11 at about 8.2 per

With the improving growth outlook, monetary and fiscal

exit measures have started. Although recovery in private

demand needs to be stronger to reinforce the growth

Hundred & Forty Six Only) has been incurred in foreign

currency during the year under review.

None of the employees of your Company is drawing

remuneration exceeding limits laid dawn under the

provisions of section 217(2A) of the Companies Act,

1956 read with the Companies (Particulars of Employees)

Rules, 1975.

In an industry where shortage of skilled workers hurts all

infrastructure builders, Ashiana is having 80% of its

workers in skilled category in the Construction

department (Engineers, Skilled & Unskilled Workers).

Skilled workers and engineers help management

coordinate multiple vendors and optimal allocation of

resources. As the company is prepared to spend money

to raise its production capacities, skillful project

management and innovative solutions will be necessary

to prevent bottlenecks.

Pursuant to Section 217 (2AA) of the Companies

Act, 1956, the Directors confirm that:

(i) In the preparation of annual accounts, applicable

accounting standards have been followed by the

Company;

(ii) Such accounting policies have been selected and

consistently applied and judgments & estimates made

that are reasonable and prudent so as to give a true and

fair view of the state of affairs of the Company as at

March 31, 2010 and of the profit of the Company for the

year ended on that date;

(iii) Proper and sufficient care has been taken for the

maintenance of adequate accounting records in

12. PARTICULARS OF EMPLOYEES

13. PROFESSIONAL PROFILE

14. DIRECTORS' RESPONSIBILITY STATEMENT

accordance with the provisions of the Companies Act,

1956, for safeguarding the assets of the Company and

for preventing and detecting fraud and other

irregularities;

(iv) Annual accounts have been prepared on a going

concern basis.

The Board of the Company has adopted a Code of

Conduct and Ethics for the Directors and Senior

Executives of the Company. The object of the Code is to

conduct the Company’s business ethically and with

responsibility, integrity, fairness, transparency and

honesty. The Code sets out a broad policy for one’s

conduct in dealing with the company, fellow directors

and with the environment in which the company

operates. The code is available on the Company’s

website (www.ashianahousing.com).

The Board of Directors takes this opportunity to express

its grateful thanks and wish to place on record its

appreciation to the Government of India, The Govt. of

Rajasthan, the Govt. of Maharastra and the Govt. of

Jharkhand and their agencies for providing us excellent

business opportunities, to our bankers for their continued

support and guidance from time to time and to the

employees of the Company at all levels for the continued

co-operation and unstinted support extended to the

Company.

The Directors also express their sincere thanks to all the

shareholders for the continued support and trust they

have reposed in the Management.

On behalf of the Board of Directors

Vishal Gupta Ankur Gupta

Managing Director Jt. Managing Director

Place : New Delhi

Dated : May 29, 2010

15. CODE OF CONDUCT AND ETHICS

16. ACKNOWLEDGEMENTS

Professional except Engg 21%

Construction55%

Skilled Workers32%

Engineers12% Unskilled Workers

Graduates & Above24%

Professional except Engg (CA/CS/MBA)

Engineers Skilled WorkersGraduates & Above

Professional Profile of Employees

Construction Unskilled Workers

MANAGEMENT DISCUSSION

& ANALYSIS

CREATING

1. ECONOMY

Although the situation is more reassuring than it was a

quarter ago, uncertainty about the shape and pace of

global recovery persists. Private spending in advanced

economies continues to be constrained and inflation

remains generally subdued making it likely that fiscal

and monetary stimuli in these economies will continue for

an extended period. Emerging market economies

(EMEs) are significantly ahead on the recovery curve, but

some of them are also facing inflationary pressures.

India's growth-inflation dynamics are in contrast to the

overall global scenario. As per the advance estimates of

GDP for 2009-10 released by the Central Statistical

Organization (CSO), the economy is expected to grow

at 7.2 per cent in 2009-10, with the industrial and the

service sectors growing at 8.2 and 8.7 per cent

respectively.

The economic activities which registered significant

growth in the third quarter of 2009-10 over the

corresponding period in 2008-09 are 'mining and

quarrying' at 9.6 per cent, 'manufacturing' at 14.3 per

cent, 'construction' at 8.7 per cent, 'trade, hotels,

transport and communication' at 10 per cent and

'financing, insurance, real estate and business services'

at 7.8 per cent. The key indicators of construction sector,

namely, cement and finished steel registered growth

rates of 8.5 per cent and 7.7 per cent, respectively in Q3

2009-10.

Further, the fast growth displayed by the Indian economy

was indicative of its inherent strength. The resilience and

dynamism displayed by MSMEs have in these

challenging times shown the critical role of this vibrant

sector. Reserve Bank's Survey of Professional Forecasters

suggests (median) growth for 2010-11 at about 8.2 per

With the improving growth outlook, monetary and fiscal

exit measures have started. Although recovery in private

demand needs to be stronger to reinforce the growth

Hundred & Forty Six Only) has been incurred in foreign

currency during the year under review.

None of the employees of your Company is drawing

remuneration exceeding limits laid dawn under the

provisions of section 217(2A) of the Companies Act,

1956 read with the Companies (Particulars of Employees)

Rules, 1975.

In an industry where shortage of skilled workers hurts all

infrastructure builders, Ashiana is having 80% of its

workers in skilled category in the Construction

department (Engineers, Skilled & Unskilled Workers).

Skilled workers and engineers help management

coordinate multiple vendors and optimal allocation of

resources. As the company is prepared to spend money

to raise its production capacities, skillful project

management and innovative solutions will be necessary

to prevent bottlenecks.

Pursuant to Section 217 (2AA) of the Companies

Act, 1956, the Directors confirm that:

(i) In the preparation of annual accounts, applicable

accounting standards have been followed by the

Company;

consistently applied and judgments & estimates made

that are reasonable and prudent so as to give a true and

fair view of the state of affairs of the Company as at

March 31, 2010 and of the profit of the Company for the

year ended on that date;

12. PARTICULARS OF EMPLOYEES

13. PROFESSIONAL PROFILE

14. DIRECTORS' RESPONSIBILITY STATEMENT

accordance with the provisions of the Companies Act,

1956, for safeguarding the assets of the Company and

for preventing and detecting fraud and other

irregularities;

concern basis.

The Board of the Company has adopted a Code of

Conduct and Ethics for the Directors and Senior

Executives of the Company. The object of the Code is to

conduct the Company’s business ethically and with

responsibility, integrity, fairness, transparency and

honesty. The Code sets out a broad policy for one’s

conduct in dealing with the company, fellow directors

and with the environment in which the company

operates. The code is available on the Company’s

website (www.ashianahousing.com).

The Board of Directors takes this opportunity to express

its grateful thanks and wish to place on record its

appreciation to the Government of India, The Govt. of

Rajasthan, the Govt. of Maharastra and the Govt. of

Jharkhand and their agencies for providing us excellent

business opportunities, to our bankers for their continued

support and guidance from time to time and to the

employees of the Company at all levels for the continued

co-operation and unstinted support extended to the

Company.

The Directors also express their sincere thanks to all the

shareholders for the continued support and trust they

have reposed in the Management.

Managing Director Jt. Managing Director

Place : New Delhi

Dated : May 29, 2010

15. CODE OF CONDUCT AND ETHICS

16. ACKNOWLEDGEMENTS

Professional except Engg 21%

Construction55%

Skilled Workers32%

Engineers12% Unskilled Workers

Graduates & Above24%

Professional except Engg (CA/CS/MBA)

Engineers Skilled WorkersGraduates & Above

Professional Profile of Employees

Construction Unskilled Workers

momentum, however, the developments on the inflation

front are worrisome.

In the annual Credit Policy for the year 2010-11, the

Reserve Bank of India (RBI) has increased the short-term

lending and borrowing rates, and the cash reserve ratio

(CRR) by 25 basis points each. The repo and reverse

repo rates have been hiked to 5.25 and 3.75 percent

respectively, and will raise the cost of fund for lenders.

This is the second time the RBI has raised rates in the

calendar year 2010. Though most banks have refrained

from raising lending or deposits rates, but the

honeymoon of soft rates is over and experts say that

home loans can get costlier later this year.

Headline wholesale price index (WPI) inflation

accelerated from 1.5 per cent in October 2009 to 9.9

per cent in March 2010. There has been a significant

change in the drivers of inflation in recent months.

What was initially a process driven by food prices has

now become more generalized. This is reflected in non-

food manufactured products inflation rising from (-) 0.4

per cent in November 2009 to 4.7 per cent in March

Once hailed as the key diver of Indian economy, real

estate in the year 2008 became plagued by

overbuilding and decreasing demand. The euphoria of

boom days had led developers to scale operations to

unsustainable levels, taking aggressive positions on the

back of significantly high debt levels. Many projects

came to a standstill. As a result, timely delivery,

construction quality, and track record have become

important decision-making criteria of the customers.

However, after turbulent period of 12-18 months, there

has been an increased activity on both investors and

occupiers side in recent months. With the economy

recovering and consumers becoming more confident

about the future, there has been increasing off take of

residential real estate. However, commercial real estate

has still not recovered from the downturn as there

continues to be oversupply of office and retail space in

most major markets.

Urbanization and demand of dwelling units is pacing

faster then the construction of the same. The housing

shortage during the plan period (2007-2012) including

the backlog has been estimated to be 26.53 million

dwelling units.

The recession though worsened by local market

inefficiencies had led to a paradigm shift in the

2. INDUSTRY

Trends in Industry

industry than just another bubble burst. Demand has

shifted from speculative to the fundamental one, led

by actual users.

There is a clear case of developers picking Tier II cities

and building them as even without any particular

emphasis, many of the Tier II cities in India will grow

rapidly, often doubling their population in the next 20

years.

The Urban population is increasing at a very fast pace.

It took 40 years (1971-2008) for urban Indian

population to rise by 230 million (110 million – 340

million) and it could take only half that time to add the

next 250 million. India will have 68 cities with

populations of more than one million each, 13 cities

with more than four million each and six megacities

with populations of ten million or more each.

According to a research report by McKinsey, the

number of middle-class households (earning between

two lakhs – ten lakhs rupees a year) will increase more

than fourfold nationwide from 32 million to 147 million

between 2008 and 2030. Therefore, most demand

will come for homes serving the middle income group

as compared to the luxury and super luxury segment

earlier.

The Indian Middle Class is moving from simple flat

requirements to various types of spaces including

integrated studio apartments, townships, penthouses,

bungalows, apartments, gated communities, serviced

apartments etc.

Also, Indian real estate scene is witnessing the

emergence of senior citizens' homes as a new market

segment as the number of projects and housing stock

directed at this section of population is rising fast. “The

estimated number of units in this segment is at about

4,000 now, but the way the segment is growing, it is

expected to jump to over 20,000 in three years” said

the chief executive officer of a Mumbai-based real

estate consultancy firm. Contemporary retirement

homes or resorts have replaced the earlier concept of

old age homes, which symbolized the last option for

needy and abandoned elderly.

Differentiation and servicing the needs of the

consumer through functional and practical homes will

be the key to growth for developers. Residential

demand in the future will be led by the Indian Middle

Class, which is growing at an unprecedented pace.

The Indian Middle Class is becoming more discerning

and demanding about the kind of property they want

and the quality of construction they expect. The new

Indian consumers demands strong track records and

heavily penalize developers who default on their

commitments. The residential market will get further

segmented into various products at varying price

points and senior living will emerge as significant

segment of the same. As the Indian consumer

evolves, the industry will need to evolve. Land has

stopped being the only source of competitive

advantage, giving way for timely delivery,

construction quality, quality maintenance, and well-

planned spaces and amenities.

33 29 55

~5,000 ~4970 ~6,000

~1,000

20082030

Conversion of

rural villages

million

Tire 2>4

million

4 >1 million

Population by Tier Million x Number of Cities

SOURCE: India Urbanization Econometric Mode;

Census 2001; McKinsey Global Institute Analysis

India will have 68 cities with population of more

than 1 million by 2030, up from 42 today

More than 100 million households will join the

Indian middle class

All India households by income bracket, 2000 - 30

%, million households, 2000 prices

100% =

Globals>1,000

Income segment

Rupees thousand

Middle class

Seekers200-500

Aspires90-200

Deprived<90

Strivers500-1,000

SOURCE-India Urbanization Econometric Model

3. GOVERNMENT INITIATIVES

4. OPPORTUNITIES

India's fast growing and relative productive cities will

drive a near fourfold increase in India's per capita

income in next twenty years. To meet the urban

demands, government plans to build 350-400

kilometers of metros every year. Also, it plans to build

approximately 20,000 kilometers of road lanes. Such

huge expansion plans will unlock the earlier not so

accessible lands and make them available for

development. The government's thrust on infrastructure

will be an important driver of growth of the real estate

industry.

But on the other hand, development of the infrastructure

consumes the very same resources (labor, steel, cement)

and thus making them scarcer in already famished

market. This might put pressure on input costs unless the

supply of these key resources keeps pace with the

demand.

As future demand will be driven by Indian Middle Class

and Tier II, III, & IV cities, Ashiana's strategy of focusing

on delivery and execution rather than land banks will

provide the competitive edge in a fast evolving industry.

Ashiana has in-house construction capabilities, which

keep costs in check while delivering a very high quality

of construction.

Actual users are driving the demand for property instead

of speculative investors. Actual users demand closer

interaction with the company, a good experience

throughout the real estate transaction, and higher

transparency. The current property brokers used to

selling to investors are unable to provide these to the

customer. Ashiana has a direct sales team which is

capable of serving the customer needs of information,

transparency, and an enjoyable experience of home

buying.

We see opportunities emerging in joint venture

developments with local landowners, who are capable

of aggregating land, but lack expertise in development

or are unable to innovate fast enough to stay competitive.

Ashiana's strong track record and a reputation

associated with transparency will enable it to capitalize

on these opportunities.

Ashiana is a pioneer in building Retirement Resorts,

which is an upcoming concept in India, and also

undertakes their maintenance responsibilities. Not only

by just providing a place, Ashiana helps its residents to

maintain a active lifestyle by providing activity clubs,

indoor and outdoor games, wheel-chair friendly

campus. Nutritious food suiting their health

requirements, 24x7 medicare facilities, emergency

response system and superior security system enables its

inhabitants to live a happy, secured and peaceful life.

momentum, however, the developments on the inflation

front are worrisome.

In the annual Credit Policy for the year 2010-11, the

Reserve Bank of India (RBI) has increased the short-term

lending and borrowing rates, and the cash reserve ratio

(CRR) by 25 basis points each. The repo and reverse

repo rates have been hiked to 5.25 and 3.75 percent

respectively, and will raise the cost of fund for lenders.

This is the second time the RBI has raised rates in the

calendar year 2010. Though most banks have refrained

from raising lending or deposits rates, but the

honeymoon of soft rates is over and experts say that

home loans can get costlier later this year.

per cent in March 2010. There has been a significant

change in the drivers of inflation in recent months.

What was initially a process driven by food prices has

now become more generalized. This is reflected in non-

food manufactured products inflation rising from (-) 0.4

per cent in November 2009 to 4.7 per cent in March

Once hailed as the key diver of Indian economy, real

estate in the year 2008 became plagued by

overbuilding and decreasing demand. The euphoria of

boom days had led developers to scale operations to

unsustainable levels, taking aggressive positions on the

back of significantly high debt levels. Many projects

came to a standstill. As a result, timely delivery,

construction quality, and track record have become

important decision-making criteria of the customers.

However, after turbulent period of 12-18 months, there

has been an increased activity on both investors and

occupiers side in recent months. With the economy

recovering and consumers becoming more confident

about the future, there has been increasing off take of

residential real estate. However, commercial real estate

has still not recovered from the downturn as there

continues to be oversupply of office and retail space in

most major markets.

Urbanization and demand of dwelling units is pacing

faster then the construction of the same. The housing

shortage during the plan period (2007-2012) including

the backlog has been estimated to be 26.53 million

dwelling units.

The recession though worsened by local market

inefficiencies had led to a paradigm shift in the

2. INDUSTRY

Trends in Industry

industry than just another bubble burst. Demand has

shifted from speculative to the fundamental one, led

by actual users.

There is a clear case of developers picking Tier II cities

and building them as even without any particular

emphasis, many of the Tier II cities in India will grow

rapidly, often doubling their population in the next 20

years.

The Urban population is increasing at a very fast pace.

It took 40 years (1971-2008) for urban Indian

population to rise by 230 million (110 million – 340

million) and it could take only half that time to add the

next 250 million. India will have 68 cities with

populations of more than one million each, 13 cities

with more than four million each and six megacities

with populations of ten million or more each.

According to a research report by McKinsey, the

number of middle-class households (earning between

two lakhs – ten lakhs rupees a year) will increase more

than fourfold nationwide from 32 million to 147 million

between 2008 and 2030. Therefore, most demand

will come for homes serving the middle income group

as compared to the luxury and super luxury segment

earlier.

The Indian Middle Class is moving from simple flat

requirements to various types of spaces including

integrated studio apartments, townships, penthouses,

bungalows, apartments, gated communities, serviced

apartments etc.

Also, Indian real estate scene is witnessing the

emergence of senior citizens' homes as a new market

segment as the number of projects and housing stock

directed at this section of population is rising fast. “The

estimated number of units in this segment is at about

4,000 now, but the way the segment is growing, it is

expected to jump to over 20,000 in three years” said

the chief executive officer of a Mumbai-based real

estate consultancy firm. Contemporary retirement

homes or resorts have replaced the earlier concept of

old age homes, which symbolized the last option for

needy and abandoned elderly.

Differentiation and servicing the needs of the

consumer through functional and practical homes will

be the key to growth for developers. Residential

demand in the future will be led by the Indian Middle

Class, which is growing at an unprecedented pace.

The Indian Middle Class is becoming more discerning

and demanding about the kind of property they want

and the quality of construction they expect. The new

Indian consumers demands strong track records and

heavily penalize developers who default on their

commitments. The residential market will get further

segmented into various products at varying price

points and senior living will emerge as significant

segment of the same. As the Indian consumer

evolves, the industry will need to evolve. Land has

stopped being the only source of competitive

advantage, giving way for timely delivery,

construction quality, quality maintenance, and well-

planned spaces and amenities.

33 29 55

~5,000 ~4970 ~6,000

~1,000

20082030

Conversion of

rural villages

million

Tire 2>4

million

4 >1 million

Population by Tier Million x Number of Cities

SOURCE: India Urbanization Econometric Mode;

Census 2001; McKinsey Global Institute Analysis

India will have 68 cities with population of more

than 1 million by 2030, up from 42 today

More than 100 million households will join the

Indian middle class

All India households by income bracket, 2000 - 30

%, million households, 2000 prices

100% =

Globals>1,000

Income segment

Rupees thousand

Middle class

Seekers200-500

Aspires90-200

Deprived<90

Strivers500-1,000

SOURCE-India Urbanization Econometric Model

3. GOVERNMENT INITIATIVES

4. OPPORTUNITIES

India's fast growing and relative productive cities will

drive a near fourfold increase in India's per capita

income in next twenty years. To meet the urban

demands, government plans to build 350-400

kilometers of metros every year. Also, it plans to build

approximately 20,000 kilometers of road lanes. Such

huge expansion plans will unlock the earlier not so

accessible lands and make them available for

development. The government's thrust on infrastructure

will be an important driver of growth of the real estate

industry.

But on the other hand, development of the infrastructure

consumes the very same resources (labor, steel, cement)

and thus making them scarcer in already famished

market. This might put pressure on input costs unless the

supply of these key resources keeps pace with the

demand.

As future demand will be driven by Indian Middle Class

and Tier II, III, & IV cities, Ashiana's strategy of focusing

on delivery and execution rather than land banks will

provide the competitive edge in a fast evolving industry.

Ashiana has in-house construction capabilities, which

keep costs in check while delivering a very high quality

of construction.

Actual users are driving the demand for property instead

of speculative investors. Actual users demand closer

interaction with the company, a good experience

throughout the real estate transaction, and higher

transparency. The current property brokers used to

selling to investors are unable to provide these to the

customer. Ashiana has a direct sales team which is

capable of serving the customer needs of information,

transparency, and an enjoyable experience of home

buying.

We see opportunities emerging in joint venture

developments with local landowners, who are capable

of aggregating land, but lack expertise in development

or are unable to innovate fast enough to stay competitive.

Ashiana's strong track record and a reputation

associated with transparency will enable it to capitalize

on these opportunities.

Ashiana is a pioneer in building Retirement Resorts,

which is an upcoming concept in India, and also

undertakes their maintenance responsibilities. Not only

by just providing a place, Ashiana helps its residents to

maintain a active lifestyle by providing activity clubs,

indoor and outdoor games, wheel-chair friendly

campus. Nutritious food suiting their health

requirements, 24x7 medicare facilities, emergency

response system and superior security system enables its

inhabitants to live a happy, secured and peaceful life.

Retirement resorts will become a large segment of

residential real estate market and Ashiana has the first

mover advantage to grab those opportunities

During the slowdown period, when all the developers

faced liquidity crunch and delivery was worst affected,

Ashiana's methodology of building smaller phases

through internal accruals had helped company

constantly focus on Equivalent Area constructed as a

major component of performance. Company's

Equivalent Area Constructed increased at a CAGR of

38.2% over last four years and is estimated to follow a

similar trend to cater to ever-growing urbanization

needs. In year 2009-10 equivalent area constructed

crossed 10 lakhs sq. ft. for the first time to reach 10.22

lakhs sq. ft.

Ashiana also completed the development of various

projects including Ashiana Aangan Phase I (4,35,200 sq. ft.),

Ashiana Aangan Phase II (4,35,200 sq. ft.), Ashiana

Manglam (2,14,760 sq. ft.), Ashiana Amarbagh Phase I

(1,47,700 sq. ft.). Ashiana has continued to increase

execution capacity even through the slowdown and we

expect to take execution capacity to 20 lakhs sq.ft. per year by

2012-13.

We also entered into a Partnership with Manglam group

of Jaipur to develop Rangoli Gardens in Jaipur. Rangoli

Gardens will be Ashiana's largest project till date with

saleable area of more than 25 lakhs sq.ft. This project

exemplifies the reputation that Ashiana enjoys and its

capabilities to take up large projects in partnerships

without deploying too much capital.

The area booked during the year was 7.04 lakhs sq.ft.,

which is a 34% increase over the 2008-09 figure of

5.27 lakhs sq.ft. With actual users driving demand and

continued economic growth we expect to see continuous

growth in Area booked. What has been heartening is

the response that we have received for Utsav Lavasa with

76,610 sq.ft. booked during the year. We have opened

a sales office in Mumbai to specifically cater to the

Mumbai based customers of Utsav Lavasa. We expect

Utsav retirement resorts to become one of the major

drivers of growth in the future.

The tough period during the slowdown made it

necessary for us to innovate newer marketing strategies.

We developed and used schemes like reference schemes

to drive sales through a very strong and loyal customer

base. We also used various payment plans like EMI

sharing scheme to provide options to customers that

better suit their financial requirements. In addition, we

opened newer markets for our products by going to

outstation locations, colleges, and corporations. The

learnings from difficult times will play a strong role in

driving growth in the future.

5. DEVELOPMENTS DURING THE YEAR

6. CORPORATE SOCIAL RESPONSIBILITY

7. RISKS AND CONCERNS

Ashiana Housing Limited has been working towards the

Corporate Social Responsibility for the past many years.

Regular efforts in the field of Skill Training, Tree

Plantation and Education etc. have been taken up by

Ashiana. The company is running an In-House Skill

Training Centre for unskilled manpower and kid's school

for labors children.

In year 2009-10, Ashiana trained 200 students in order

to enhance quality of product and create employability.

600 trees were planted and all projects had installed

Rain Water Harvesting concept. Free Medical

Campaigns were carried out throughout the year and

Ashiana also adopted a village school at Bhiwadi in

order to uplift its standard.

For year 2010-11 Ashiana has already started a

separate CSR department. It has drawn up a proposal to

increase the number of students in skill training school to

400 this year. In the tree plantation front, the company is

under taking to plant and take up regular horticulture

maintenance of 800 trees in Bhiwadi, Jamshedpur and

Jodhpur in addition to the trees already planted. Apart

from Tree Plantation, the company has also decided to

develop Public Parks and road side area in Bhiwadi and

Jamshedpur and public utilities in a school at Jodhpur.

With rising inflation and interest rates, home loan rates

will increase sooner or later. Increase in these rates will

adversely affect the real estate sector by decreasing the

ability of buyers to pay and purchase thus impact the

demand. However, with continued economic growth,

income of homebuyers will continue to increase and thus

countering the impact of higher interest rates.

Inflation remains the largest risk to the economy.

per cent by March 2010. There has been a significant

change in the drivers of inflation in recent months. What

was initially a process driven by food prices has now

become more generalized. This is reflected in non-food

manufactured products inflation rising from (-) 0.4 per

cent in November 2009 to 4.7 per cent in March 2010.

Inflation will put pressure on input costs, which will

impact margins. However, Ashiana's in-house

construction capabilities allow it to react to these

changes faster and manage costs better. Also, staggered

sales of units over the life of the project allow increase in

realizations that counter the impact of increase in input

costs.

Uncertainties remain in the regulatory environment. The

provision for indirect taxes (service tax and VAT in

certain states) on the sector continues to be unclear.

These taxes can and will be passed on to the customer,

however multiplicity of taxes in the sector including

stamp duty, external development charges, internal

development charges, labour Cess, and now service tax

and VAT create cascading effects which hurt

affordability. In addition, increasingly various states are

passing new laws to regulate the sector including real

estate regulator bill, apartment ownership bills and

others. Lack of coordination between authorities

responsible for enforcing different laws has increased

red tape and time taken to launch a project. The current

regulations and tax structure of the real estate sector

needs to be simplified to increase efficiencies of the

sector.

Ashiana has surpassed the testing period of financial

crisis and is a well-growing real estate firm with a PAT

CAGR of over 39% over the last couple of years. The

Company's execution model has enabled it to maintain

8. OUTLOOK

a net debt free position and thus endure the meltdown

better than others.

We expect to develop 20 lakhs sq. ft. in 2012-13. Over

the next three years we will launch two to three projects

every year. First project to be launched in 2010-11 will

be Marine Plaza in Jamshedpur, which will be a retail-

cum-hotel development on the banks of the

Subarnarekha River.

At a time when real estate market suffers with the issues

of quality and timely delivery, Ashiana's in-house

construction expertise and a track record of delivering

projects on time has developed a reputation of itself in

the market. On the back of a robust business model,

focus on middle income housing, pioneer venture in

conceptual projects as Retirement Resorts, Ashiana is in

a strong position to grab all the opportunities and

provide a promising future to all its stakeholders.

Retirement resorts will become a large segment of

residential real estate market and Ashiana has the first

mover advantage to grab those opportunities

During the slowdown period, when all the developers

faced liquidity crunch and delivery was worst affected,

Ashiana's methodology of building smaller phases

through internal accruals had helped company

constantly focus on Equivalent Area constructed as a

major component of performance. Company's

Equivalent Area Constructed increased at a CAGR of

38.2% over last four years and is estimated to follow a

similar trend to cater to ever-growing urbanization

needs. In year 2009-10 equivalent area constructed

crossed 10 lakhs sq. ft. for the first time to reach 10.22

lakhs sq. ft.

Ashiana also completed the development of various

projects including Ashiana Aangan Phase I (4,35,200 sq. ft.),

Ashiana Aangan Phase II (4,35,200 sq. ft.), Ashiana

Manglam (2,14,760 sq. ft.), Ashiana Amarbagh Phase I

(1,47,700 sq. ft.). Ashiana has continued to increase

execution capacity even through the slowdown and we

expect to take execution capacity to 20 lakhs sq.ft. per year by

2012-13.

We also entered into a Partnership with Manglam group

of Jaipur to develop Rangoli Gardens in Jaipur. Rangoli

Gardens will be Ashiana's largest project till date with

saleable area of more than 25 lakhs sq.ft. This project

exemplifies the reputation that Ashiana enjoys and its

capabilities to take up large projects in partnerships

without deploying too much capital.

The area booked during the year was 7.04 lakhs sq.ft.,

which is a 34% increase over the 2008-09 figure of

5.27 lakhs sq.ft. With actual users driving demand and

continued economic growth we expect to see continuous

growth in Area booked. What has been heartening is

the response that we have received for Utsav Lavasa with

76,610 sq.ft. booked during the year. We have opened

a sales office in Mumbai to specifically cater to the

Mumbai based customers of Utsav Lavasa. We expect

Utsav retirement resorts to become one of the major

drivers of growth in the future.

The tough period during the slowdown made it

necessary for us to innovate newer marketing strategies.

We developed and used schemes like reference schemes

to drive sales through a very strong and loyal customer

base. We also used various payment plans like EMI

sharing scheme to provide options to customers that

better suit their financial requirements. In addition, we

opened newer markets for our products by going to

outstation locations, colleges, and corporations. The

learnings from difficult times will play a strong role in

driving growth in the future.

5. DEVELOPMENTS DURING THE YEAR

6. CORPORATE SOCIAL RESPONSIBILITY

7. RISKS AND CONCERNS

Ashiana Housing Limited has been working towards the

Corporate Social Responsibility for the past many years.

Regular efforts in the field of Skill Training, Tree

Plantation and Education etc. have been taken up by

Ashiana. The company is running an In-House Skill

Training Centre for unskilled manpower and kid's school

for labors children.

In year 2009-10, Ashiana trained 200 students in order

to enhance quality of product and create employability.

600 trees were planted and all projects had installed

Rain Water Harvesting concept. Free Medical

Campaigns were carried out throughout the year and

Ashiana also adopted a village school at Bhiwadi in

order to uplift its standard.

For year 2010-11 Ashiana has already started a

separate CSR department. It has drawn up a proposal to

increase the number of students in skill training school to

400 this year. In the tree plantation front, the company is

under taking to plant and take up regular horticulture

maintenance of 800 trees in Bhiwadi, Jamshedpur and

Jodhpur in addition to the trees already planted. Apart

from Tree Plantation, the company has also decided to

develop Public Parks and road side area in Bhiwadi and

Jamshedpur and public utilities in a school at Jodhpur.

With rising inflation and interest rates, home loan rates

will increase sooner or later. Increase in these rates will

adversely affect the real estate sector by decreasing the

ability of buyers to pay and purchase thus impact the

demand. However, with continued economic growth,

income of homebuyers will continue to increase and thus

countering the impact of higher interest rates.

Inflation remains the largest risk to the economy.

per cent by March 2010. There has been a significant

change in the drivers of inflation in recent months. What

was initially a process driven by food prices has now

become more generalized. This is reflected in non-food

manufactured products inflation rising from (-) 0.4 per

cent in November 2009 to 4.7 per cent in March 2010.

Inflation will put pressure on input costs, which will

impact margins. However, Ashiana's in-house

construction capabilities allow it to react to these

changes faster and manage costs better. Also, staggered

sales of units over the life of the project allow increase in

realizations that counter the impact of increase in input

costs.

Uncertainties remain in the regulatory environment. The

provision for indirect taxes (service tax and VAT in

certain states) on the sector continues to be unclear.

These taxes can and will be passed on to the customer,

however multiplicity of taxes in the sector including

stamp duty, external development charges, internal

development charges, labour Cess, and now service tax

and VAT create cascading effects which hurt

affordability. In addition, increasingly various states are

passing new laws to regulate the sector including real

estate regulator bill, apartment ownership bills and

others. Lack of coordination between authorities

responsible for enforcing different laws has increased

red tape and time taken to launch a project. The current

regulations and tax structure of the real estate sector

needs to be simplified to increase efficiencies of the

sector.

Ashiana has surpassed the testing period of financial

crisis and is a well-growing real estate firm with a PAT

CAGR of over 39% over the last couple of years. The

Company's execution model has enabled it to maintain

8. OUTLOOK

a net debt free position and thus endure the meltdown

better than others.

We expect to develop 20 lakhs sq. ft. in 2012-13. Over

the next three years we will launch two to three projects

every year. First project to be launched in 2010-11 will

be Marine Plaza in Jamshedpur, which will be a retail-

cum-hotel development on the banks of the

Subarnarekha River.

At a time when real estate market suffers with the issues

of quality and timely delivery, Ashiana's in-house

construction expertise and a track record of delivering

projects on time has developed a reputation of itself in

the market. On the back of a robust business model,

focus on middle income housing, pioneer venture in

conceptual projects as Retirement Resorts, Ashiana is in

a strong position to grab all the opportunities and

provide a promising future to all its stakeholders.

REPORT ON CORPORATE

GOVERNANCE FORMING PART

OF THE DIRECTORS' REPORT

1. COMPANY'S PHILOSOPHY ON CODE OF GOVERNANCE

2. BOARD OF DIRECTORS

The Company firmly believes in good Corporate

Governance and has made Corporate Governance a

practice and continuous process of development right

across the company. The Company's Philosophy on

corporate governance envisages the attainment of the

highest levels of transparency and accountability in the

functioning of the company and conduct of business.

The Company's corporate philosophy is focused on its

people who are the most important assets. The company

values its employee's integrity, creativity and ability who

in turn demonstrate the highest ethical standard and

responsibility towards the shareholders. The Company

believes that over a period of time all its operations and

actions must serve the underlying goal of enhancing

overall shareholder value.

The Company has optimum combination of executive

and non-executive directors. The Board consists of seven

directors out of which three are Executive Directors, four

are Non-Executive & Independent Directors. None of the

Directors on the Board is a member of more than 10

Committees and Chairman of more than 5 Committees

(as specified in the Clause 49 of the Listing Agreement),

across all the companies in which he is a director. The

necessary disclosures regarding Committee positions

have been made by the Directors.

(b) Board Meeting held in Financial Year 2009 – 2010 and

attendance of Directors:

The meeting of the Board and its Committee/s are

generally held in New Delhi and scheduled well in

advance. Normally the Board meets at least once in a

quarter to consider amongst other businesses, the

quarterly performance of the Company and financial

results. Detailed agenda notes with MIS reports, charts

etc. are circulated well in advance. The Directors actively

participate in the deliberation at these meetings. During

the year, six Board Meetings were held on April 02, 2009,

June 03, 2009, July 04, 2009, July31, 2009, October 28,

2009 and on January 28, 2010.

The attendance of each Director in the Board Meetings is

detailed herein below:

Note:- As per clause 49 of the Listing Agreement membership of Audit

Committee and Shareholders/Investors Grievance Committee are

required to be disclosed.

Name of

Director

Executive/

Executive

DesignationNo. of Board Meetings

held during 2009-10

No. of Board Meetings attended

during 09-10

Attendance at the last AGM held

on 22nd day of Sept. 09

Shri Om Executive Managing 6 5 Not

Prakash Director Present

Shri Vishal Executive Joint 6 6 Not

Gupta Managing Present

Director

Shri Ankur Executive Whole time 6 6 Not

Gupta director Present

Shri Varun Executive Whole time 6 6 Present

Gupta director

Shri Ashok Non- Independent 6 4 Not

Kumar Executive & director Present

Mattoo Independent

Shri Non- Independent 6 3 Not

Abhishek Executive & director Present

Dalmia Independent

Shri Lalit Non- Independent 6 5 Present

Kumar Executive & director

Chhawch- Independent

Ms. Sonal Non- Independent 6 5 Not

Mattoo Executive & director Present

Independent

(c) Remuneration paid to Whole Time Directors and sitting fees to the Non-executive Directors:

Remuneration to Managing Directors and Whole Time Directors is being paid as per terms of their appointment.

The details of remuneration paid to the Whole Time Directors during the year are stated herein below:

Name of

Director

Executive/

Non Executive Directorship Committee Membership

2. Shri Ankur Gupta Executive 5 -

3. Shri Varun Gupta Executive 3 1

4. Shri Ashok Kumar Non-Executive 3 1Mattoo & Independent

5. Shri Abhishek Non-Executive 18 2Dalmia & Independent

6. Shri Lalit Kumar Non-Executive 84 1 Chhawchharia & Independent

7. Smt. Sonal Mattoo Non-Executive 2 -& Independent

Shri Vishal Gupta Executive 6 -

No. of other

(a) The present composition of the Board of Directors is as under:

Sl. No.

Name Designation Salaries & Allowances

Gupta Director Lakhs Lakhs

2. Shri Vishal Gupta Jt. Managing Rs. 18.00 Rs. 18.00

Director Lakhs Lakhs

3. Shri Ankur Gupta Whole Time Rs. 18.00 Rs. 18.00

4. Shri Varun Gupta Whole Time Rs.18.00 Rs. 18.00

Shri Om Prakash Managing Rs. 18.00 Rs. 18.00

(d) Terms of appointment of Whole-time Directors:

3. AUDIT COMMITTEE

The current term of appointment of Shri Vishal Gupta,

Managing Director and Shri Ankur Gupta, Joint

Managing Director are up to March 31, 2013, and the

current term of Shri Varun Gupta, Whole Time Director, is

upto June 30, 2011. The term of appointment of Shri Om

Prakash Gupta has expired on March 31, 2010 and he

further stepped down from the directorship of the

Company with effect from April 01, 2010. Further, Shri

Vishal Gupta and Shri Ankur Gupta have been appointed

Managing Director and Joint Managing Director of the

Company with effect from April 01, 2010.

The Company has an Audit Committee of the Board since

January 2000 which comprises of three Non-Executive

Independent Directors namely Shri Lalit Kumar

Chhawchharia – Chairman, Shri Ashok Kumar Mattoo –

Member, Ms. Sonal Mattoo – Member. The quorum of the

Audit Committee is two members. The Company

Secretary is the Secretary of the Audit Committee. The

Audit Committee meeting was held on four times during

financial year 2009-10, the date of which is as follows:

1. June 03, 2009 2. July 31, 2009

3. Oct. 28, 2009 4. Jan. 28, 2010

Attendance of the members of the Audit Committee at

these meetings is as under:

Brief Terms of Reference of Audit Committee:

The primary function of the Audit Committee is to assist the

Board of Directors in fulfilling its oversight responsibilities

by reviewing the financial reports and other financial

information provided by the Company to any Statutory

Authority or to the investors or the public, the Company's

system of Internal Controls regarding finance, accounting

and legal compliances that Management and the Board

have established.

The terms of reference of Audit Committee include inter-

alia the followings

1. Discussion with the auditor, periodically about the internal control systems, the scope of audit including the observation of the auditors.

2. (a) To review the quarterly, half yearly and annual financial statements before submission to the Board.

Name of Members of

Audit Committee

No. of Meetings

Attended

1. Shri Lalit Kumar Chhawchharia 4

2. Shri Ashok Kumar Mattoo 4

3. Ms. Sonal Mattoo 4

(b) To review and take on record the unaudited quarterly results of the company before publication.

3. To ensure compliance of Internal Control System.

4. Oversight of the company's financial reporting process and disclosure of its financial information to ensure that the financial statement is correct, sufficient and credible.

5. Noting appointment and removal of external auditors. Recommending the fixation of audit fees of external auditors and also approval for payment for any other services.

6. Reviewing with Management the annual financial statements before submission to the Board.

The Company has a duly constituted “Remuneration Committee”. The Committee consists of three (3) non executive independent directors. All matters relating to finalization of remuneration of directors are being taken to the committee for their consideration and approval. The following Directors are the members of the Remuneration Committee:

4. REMUNERATION COMMITTEE

Sl. No.

Name of Directors Designation

1. Shri Chairman

2. Shri Lalit Kumar Chhawchharia Member

3. Ms. Sonal Mattoo Member

Ashok Kumar Mattoo

During the financial year 2009-10 Remuneration Committee held its one

meeting.

Sl. No. Name of Directors Designation

1. Chairman

2. Shri Vishal Gupta Member

3. Shri Varun Gupta Member

Ms. Sonal Mattoo

5. TRANSFER AND SHAREHOLDERS'/INVESTORS'

GRIEVANCE COMMITTEE

The Transfer and Shareholders'/Investors' Grievance

Committee was reconstituted on May 29, 2010. The

following directors are members of the Transfer and

Shareholder's/Investors' Grievance Committee:

The scope of the "Transfer and Shareholders'/Investors' Grievance Committee" was enlarged to monitor investors' grievances/complaints along with the share transfer. The Committee approved the share transfer at its meeting which was held once or twice in a month. The Transfer and Shareholders'/Investors' Grievance Committee also took note of the findings of audit carried out by practicing Company Secretary and implemented the suggestions. As required by the listing agreement executed with Stock Exchanges, Mr. Bhagwan Kumar, Company Secretary, was appointed as a 'Compliance Officer' and entrusted to monitor the share transfer process and liaise with the regulatory authorities.

There has been no complaint that has not been resolved to the satisfaction of the shareholders nor are there any pending complaints.

The details of last three Annual General Meetings and

Extra Ordinary General Meeting are as mentioned below:

6. GENERAL BODY MEETINGS

REPORT ON CORPORATE

GOVERNANCE FORMING PART

OF THE DIRECTORS' REPORT

1. COMPANY'S PHILOSOPHY ON CODE OF GOVERNANCE

2. BOARD OF DIRECTORS

The Company firmly believes in good Corporate

Governance and has made Corporate Governance a

practice and continuous process of development right

across the company. The Company's Philosophy on

corporate governance envisages the attainment of the

highest levels of transparency and accountability in the

functioning of the company and conduct of business.

The Company's corporate philosophy is focused on its

people who are the most important assets. The company

values its employee's integrity, creativity and ability who

in turn demonstrate the highest ethical standard and

responsibility towards the shareholders. The Company

believes that over a period of time all its operations and

actions must serve the underlying goal of enhancing

overall shareholder value.

The Company has optimum combination of executive

and non-executive directors. The Board consists of seven

directors out of which three are Executive Directors, four

are Non-Executive & Independent Directors. None of the

Directors on the Board is a member of more than 10

Committees and Chairman of more than 5 Committees

(as specified in the Clause 49 of the Listing Agreement),

across all the companies in which he is a director. The

necessary disclosures regarding Committee positions

have been made by the Directors.

(b) Board Meeting held in Financial Year 2009 – 2010 and

attendance of Directors:

The meeting of the Board and its Committee/s are

generally held in New Delhi and scheduled well in

advance. Normally the Board meets at least once in a

quarter to consider amongst other businesses, the

quarterly performance of the Company and financial

results. Detailed agenda notes with MIS reports, charts

etc. are circulated well in advance. The Directors actively

participate in the deliberation at these meetings. During

the year, six Board Meetings were held on April 02, 2009,

June 03, 2009, July 04, 2009, July31, 2009, October 28,

2009 and on January 28, 2010.

The attendance of each Director in the Board Meetings is

detailed herein below:

Note:- As per clause 49 of the Listing Agreement membership of Audit

Committee and Shareholders/Investors Grievance Committee are

required to be disclosed.

Name of

Director

Executive/

Executive

DesignationNo. of Board Meetings

held during 2009-10

No. of Board Meetings attended

during 09-10

Attendance at the last AGM held

on 22nd day of Sept. 09

Shri Om Executive Managing 6 5 Not

Prakash Director Present

Shri Vishal Executive Joint 6 6 Not

Gupta Managing Present

Director

Shri Ankur Executive Whole time 6 6 Not

Gupta director Present

Shri Varun Executive Whole time 6 6 Present

Gupta director

Shri Ashok Non- Independent 6 4 Not

Kumar Executive & director Present

Mattoo Independent

Shri Non- Independent 6 3 Not

Abhishek Executive & director Present

Dalmia Independent

Shri Lalit Non- Independent 6 5 Present

Kumar Executive & director

Chhawch- Independent

Ms. Sonal Non- Independent 6 5 Not

Mattoo Executive & director Present

Independent

(c) Remuneration paid to Whole Time Directors and sitting fees to the Non-executive Directors:

Remuneration to Managing Directors and Whole Time Directors is being paid as per terms of their appointment.

The details of remuneration paid to the Whole Time Directors during the year are stated herein below:

Name of

Director

Executive/

Non Executive Directorship Committee Membership

2. Shri Ankur Gupta Executive 5 -

3. Shri Varun Gupta Executive 3 1

4. Shri Ashok Kumar Non-Executive 3 1Mattoo & Independent

5. Shri Abhishek Non-Executive 18 2Dalmia & Independent

6. Shri Lalit Kumar Non-Executive 84 1 Chhawchharia & Independent

7. Smt. Sonal Mattoo Non-Executive 2 -& Independent

Shri Vishal Gupta Executive 6 -

No. of other

(a) The present composition of the Board of Directors is as under:

Sl. No.

Name Designation Salaries & Allowances

Gupta Director Lakhs Lakhs

2. Shri Vishal Gupta Jt. Managing Rs. 18.00 Rs. 18.00

3. Shri Ankur Gupta Whole Time Rs. 18.00 Rs. 18.00

4. Shri Varun Gupta Whole Time Rs.18.00 Rs. 18.00

Shri Om Prakash Managing Rs. 18.00 Rs. 18.00

(d) Terms of appointment of Whole-time Directors:

3. AUDIT COMMITTEE

The current term of appointment of Shri Vishal Gupta,

Managing Director and Shri Ankur Gupta, Joint

Managing Director are up to March 31, 2013, and the

current term of Shri Varun Gupta, Whole Time Director, is

upto June 30, 2011. The term of appointment of Shri Om

Prakash Gupta has expired on March 31, 2010 and he

further stepped down from the directorship of the

Company with effect from April 01, 2010. Further, Shri

Vishal Gupta and Shri Ankur Gupta have been appointed

Managing Director and Joint Managing Director of the

Company with effect from April 01, 2010.

The Company has an Audit Committee of the Board since

January 2000 which comprises of three Non-Executive

Independent Directors namely Shri Lalit Kumar

Chhawchharia – Chairman, Shri Ashok Kumar Mattoo –

Member, Ms. Sonal Mattoo – Member. The quorum of the

Audit Committee is two members. The Company

Secretary is the Secretary of the Audit Committee. The

Audit Committee meeting was held on four times during

financial year 2009-10, the date of which is as follows:

1. June 03, 2009 2. July 31, 2009

3. Oct. 28, 2009 4. Jan. 28, 2010

Attendance of the members of the Audit Committee at

these meetings is as under:

Brief Terms of Reference of Audit Committee:

The primary function of the Audit Committee is to assist the

Board of Directors in fulfilling its oversight responsibilities

by reviewing the financial reports and other financial

information provided by the Company to any Statutory

Authority or to the investors or the public, the Company's

system of Internal Controls regarding finance, accounting

and legal compliances that Management and the Board

have established.

The terms of reference of Audit Committee include inter-

alia the followings

1. Discussion with the auditor, periodically about the internal control systems, the scope of audit including the observation of the auditors.

2. (a) To review the quarterly, half yearly and annual financial statements before submission to the Board.

Name of Members of

Audit Committee

No. of Meetings

Attended

1. Shri Lalit Kumar Chhawchharia 4

2. Shri Ashok Kumar Mattoo 4

3. Ms. Sonal Mattoo 4

(b) To review and take on record the unaudited quarterly results of the company before publication.

3. To ensure compliance of Internal Control System.

4. Oversight of the company's financial reporting process and disclosure of its financial information to ensure that the financial statement is correct, sufficient and credible.

5. Noting appointment and removal of external auditors. Recommending the fixation of audit fees of external auditors and also approval for payment for any other services.

6. Reviewing with Management the annual financial statements before submission to the Board.

The Company has a duly constituted “Remuneration Committee”. The Committee consists of three (3) non executive independent directors. All matters relating to finalization of remuneration of directors are being taken to the committee for their consideration and approval. The following Directors are the members of the Remuneration Committee:

4. REMUNERATION COMMITTEE

Sl. No.

Name of Directors Designation

1. Shri Chairman

2. Shri Lalit Kumar Chhawchharia Member

3. Ms. Sonal Mattoo Member

Ashok Kumar Mattoo

During the financial year 2009-10 Remuneration Committee held its one

meeting.

Sl. No. Name of Directors Designation

1. Chairman

2. Shri Vishal Gupta Member

3. Shri Varun Gupta Member

Ms. Sonal Mattoo

5. TRANSFER AND SHAREHOLDERS'/INVESTORS'

GRIEVANCE COMMITTEE

The Transfer and Shareholders'/Investors' Grievance

Committee was reconstituted on May 29, 2010. The

following directors are members of the Transfer and

Shareholder's/Investors' Grievance Committee:

The scope of the "Transfer and Shareholders'/Investors' Grievance Committee" was enlarged to monitor investors' grievances/complaints along with the share transfer. The Committee approved the share transfer at its meeting which was held once or twice in a month. The Transfer and Shareholders'/Investors' Grievance Committee also took note of the findings of audit carried out by practicing Company Secretary and implemented the suggestions. As required by the listing agreement executed with Stock Exchanges, Mr. Bhagwan Kumar, Company Secretary, was appointed as a 'Compliance Officer' and entrusted to monitor the share transfer process and liaise with the regulatory authorities.

There has been no complaint that has not been resolved to the satisfaction of the shareholders nor are there any pending complaints.

The details of last three Annual General Meetings and

Extra Ordinary General Meeting are as mentioned below:

6. GENERAL BODY MEETINGS

Annual General Meetings

For the

Venue Day and

Date WhetherSpecial

ResolutionPassed

2006-07 Kalakunj – Kalamandir, Sept 21, Friday, No

48, Shakespeare Sarani, 2007 2:30 p.m.

Kolkata

2007-08 Kalakunj – Kalamandir, Sept 18, Thursday, No

48, Shakespeare Sarani, 2008 11:30 a.m.

Kolkata

2008-09 Kalakunj – Kalamandir, Sept 22, Tuesday, Yes

Kolkata

No resolutions requiring postal ballot as recommended

under Companies (Passing of Resolution by Postal Ballot)

Rules, 2001 have been placed for shareholders' approval

at the last Annual General Meeting.

None of the transactions with any of the related parties

were in potential conflict with the interests of the

Company at large. Transactions with related parties are

disclosed in Note No. 21 (12) of Schedule to the

Accounts in the Annual Report.

There has been no non compliance of the provisions

/requirements of Stock Exchange/SEBI. No

penalties/strictures have been imposed on the

Company by SEBI, Stock Exchange(s) or any other

statutory authority on any matter relating to Capital

Market.

The quarterly Unaudited Financial Results and

Annual Financial Results are published in leading

national newspapers, i.e., Asian Age/ Business

Standard/Financial Express (English) and Khabarer

Kagaj/ Kalantar (Bengali). It is also displayed on

Company's web site at www.ashianahousing.com. The

Company has not made any representation to any

Institutional Investor. The Management's Discussion and

Analysis report prepared by the Management, forms part

of the Annual Report.

Shri Vishal Gupta, Managing Director and Shri Manojit

Sengupta, General Manager (Finance & Accounts) have

furnished the requisite certificate to the Board of directors

under clause 49 of the Listing Agreement.

7. DISCLOSURES

8. MEANS OF COMMUNICATION

9. CEO/CFO CERTIFICATION

10. GENERAL SHAREHOLDER'S INFORMATION

(a) Annual General Meeting

(b) Financial Calendar

Day - Friday

Date - August 20, 2010

Time - 11.00 A.M.

Venue - ‘Kalakunj' (Basement Kalamandir), 48,

Shakespeare Sarani, Kolkata – 700 017

Ashiana Housing follows the financial year from April to March. The Unaudited Financial Results for the first three quarters and the Audited Financial Results for the year ended March 31, 2010 were taken on record and approved by the Board of Directors in its meeting(s) held on the following dates:

Quarter Ended Date of Board Meeting

April – June, 2009 July 31, 2009

July – September, 2009 October 28, 2009

October – December, 2009 January 28, 2010

Year Ended March 31, 2010 May 29, 2010

(c) Book Closure

(d) Stock Exchanges

The Company's Register of Members and Share Transfer

books will remain closed from Aug. 16th, 2010 to Aug.

20th, 2010 (both days inclusive) for the purpose of

Annual General Meeting of the Company.

The Company's equity shares are listed on the Bombay

Stock Exchanges the details of which are as follows:

1. The Stock Exchange, Mumbai P.J. 523716

Towers, Dalal Street Mumbai - 400 001

Sl.No.

Security Code No.Name and address of the Stock Exchange

There is no outstanding listing fees payable to Bombay

Stock Exchange.

(e) Dividend paid for the last three years

Sl.No.

Total Amount of Dividend (Rs.)

Date of Declaration Dividend in %

1. September 21, 2007 25 13,382,750

2. September 18, 2008 15 28,103,775

3. For the F.Y. 2008-2009 Nil Nil

(f) Market Price Data:

Monthly High and Low quotation of shares traded on The

Bombay Stock Exchange during the financial year 2009-

10 are as follows:

LowMonth High

April, 2009 47.50 30.30

May, 2009 59.50 35.00

June, 2009 70.35 54.70

July, 2009 56.90 43.05

August, 2009 66.80 47.00

September, 2009 75.50 58.00

October, 2009 117.90 69.60

November, 2009 124.60 78.00

December, 2009 135.00 110.60

January, 2010 135.00 101.20

February, 2010 121.00 93.05

March, 2010 106.95 94.05

For the

Venue Day and

Date WhetherSpecial

ResolutionPassed

2006-07 Kalakunj – Kalamandir, March 30, Friday, Yes

48, Shakespeare Sarani, 2007 10.30 a.m.

Kolkata

2007-08 Bengal National Chamber January15, Tuesday, Yes

of Commerce & Industry, 2008 11.30 a.m.

23 R N Mukherjee Road,

Kolkata- 700001

2009-10 Kalakunj – Kalamandir, 48, May 02, Saturday, Yes

Shakespeare Sarani, Kolkata 2009 10.30 a.m.

Extra Ordinary General Meeting

The Company has its ISIN No. INE 365D 01013 for dematerialisation of equity shares.

SharesShareholders

UPTO 500 8,514 84.31 2,119,333 11.32

501 TO 1000 1,145 11.34 814,349 4.35

1001 TO 2000 241 2.39 340,438 1.82

2001 TO 3000 50 0.50 124,621 0.66

3001 TO 4000 26 0.26 90,129 0.48

4001 TO 5000 14 0.14 64,210 0.34

5001 TO 10000 49 0.49 356,343 1.90

10001 AND ABOVE 59 0.58 14,826,427 79.13

10,098 100.00 18,735,850 100.00

NumbersNumbersNo. of Shares % to total % to total

(h) Distribution of Shareholding as on 31.03.2010:

April09

June09

Sept09

20406080

100120140

(g) Share Performance Chart:

No. of sharesShareholders PercentageSl. No.

A. Promoter's Holding

1. Indian Promoters 12,788,874 68.26

B. Non-Promoter's Holding

2. Banks, FIs, Insurance Cos., 800 0.004

(Central/State Govt.

Institutions/ Non-Govt.

Institutions

3. Foreign Institutional Investors 38,950 0.208

C. Others

4. Private Corporate Bodies 1,360,006 7.26

5. Indian Public 4,437,011 23.68

6. NRIs/OCBs 103,810 0.554

7. Others (shares in transit) 6,399 0.034

Grand Total 18,735,850 100.00

(i) Shareholding Pattern (As on 31.03.2010):

(j) Registrar & Transfer Agent :

(k) Share Transfer Process:

(l) Dematerialisation of Shares and Liquidity:

M/s. Beetal Financial & Computer services Pvt. Ltd.,

having its address at Beetal House, 99, Madangir, Behind

Local Shopping Centre, Near Dada Harsukh Das Mandir,

New Delhi -110 062 has been appointed by the

Company for registration of share transfer and other

related work.

The Company's shares being in compulsory demat list are

transferable through the depository system. Shares in

dematerialisation form are processed by the Registrar &

Transfer Agent - M/s Beetal Financial & Computer Service

Pvt. Ltd., Beetal House, 99, Madangir, Near Dada

Harsukh Dass Mandir, Behind Local Shopping Centre,

New Delhi - 110062. Transfer of shares both by Demat

and Physical mode are approved by the 'Transfer and

Shareholders/Investors Grievance Committee'.

The Shares of the company are compulsorily traded in

dematerialised form. In order to enable the shareholders

to hold their shares in electronic form and to facilitate

scripless trading, the Company has enlisted its shares with

National Securities Depository Ltd. and Central

Depository Services (India) Ltd. Out of 1,87,35,850 Equity

Shares of the company 56,87,580 Equity shares have

been dematerialised as on 31.03.2010.

As stipulated by the Securities and Exchange Board of

India, M/s. B. Chhawchharia and Co. Chartered

Accountants, Statutory Auditors of the company, carries

out the Secretarial Audit to reconcile the total admitted

capital with National Securities Depository Limited (NSDL)

and Central Depository Services (India) Ltd. (CDSL) and

the total issued and listed capital. This audit is carried out

every quarter and the Report thereon is submitted to the

Stock Exchanges and is also placed before the Audit

Committee. The audit, inter alia confirms that the total

listed and paid up capital of the company is in agreement

with the aggregate of the total number of shares in

dematerialised form (held with NSDL and CDSL) and the

total number of shares in physical form.

The Board has already formed a Remuneration

Committee. Other non-mandatory requirements are yet to

be adopted.

5F, Everest Unit No. 4&5, 3rd Floor,

6/C, Chowringhee Road Plot No. D-2

Kolkata-700 071 Saket District Centre,

Saket, ND -110 017

(a) Ashiana Trade Centre, Aditya Pur, Jamshedpur -

831 013

( b ) Ashiana Bageecha, Bhagat Singh Colony, Bhiwadi,

Rajasthan

( c ) 413, Ashiana Tower, Exhibition Road, Patna -

800 001

( d ) 604, Apex Mall, Tonk Road, Lal Kothi, Jaipur

( e ) Vill. Kuri Bhagtasani, Pali Road, Jodhpur

( f ) The Business Centre, Office No. 2, 2nd Floor,

Purushottam Plaza, Baner Road, Pune - 411 045

Shareholders are advised to correspond the Registrar &

Share Transfer Agent – M/s. Beetal Financial & Computer

Services Private Ltd. , Beetal House, 99, Madangir, Near

Dada Harsukh Dass Mandir, Behind Local Shopping

Centre, New Delhi – 110 062 for any query regarding

Share Transfer / Transmission etc. and other related

matter or may contact Mr. Bhagwan Kumar, Company

Secretary and Compliance Officer on Phone

No. 011 - 4265 4265; Fax No. 011 - 4265 4200; and

E-mail: [email protected].

Place : New Delhi Vishal Gupta - MD

Dated : May 29, 2010 Ankur Gupta - Jt. MD

(m) Secretarial Audit Report

(n) Compliance with Non Mandatory Requirements:

(o) Office Locations

Registered Office: Head Office &

Share Dept.:

Branch Offices:

11. ADDRESS FOR CORRESPONDENCE

Annual General Meetings

For the

Venue Day and

Date WhetherSpecial

ResolutionPassed

2006-07 Kalakunj – Kalamandir, Sept 21, Friday, No

Kolkata

2007-08 Kalakunj – Kalamandir, Sept 18, Thursday, No

48, Shakespeare Sarani, 2008 11:30 a.m.

Kolkata

2008-09 Kalakunj – Kalamandir, Sept 22, Tuesday, Yes

Kolkata

No resolutions requiring postal ballot as recommended

under Companies (Passing of Resolution by Postal Ballot)

Rules, 2001 have been placed for shareholders' approval

at the last Annual General Meeting.

None of the transactions with any of the related parties

were in potential conflict with the interests of the

Company at large. Transactions with related parties are

disclosed in Note No. 21 (12) of Schedule to the

Accounts in the Annual Report.

There has been no non compliance of the provisions

/requirements of Stock Exchange/SEBI. No

penalties/strictures have been imposed on the

Company by SEBI, Stock Exchange(s) or any other

statutory authority on any matter relating to Capital

Market.

The quarterly Unaudited Financial Results and

Annual Financial Results are published in leading

national newspapers, i.e., Asian Age/ Business

Standard/Financial Express (English) and Khabarer

Kagaj/ Kalantar (Bengali). It is also displayed on

Company's web site at www.ashianahousing.com. The

Company has not made any representation to any

Institutional Investor. The Management's Discussion and

Analysis report prepared by the Management, forms part

of the Annual Report.

Shri Vishal Gupta, Managing Director and Shri Manojit

Sengupta, General Manager (Finance & Accounts) have

furnished the requisite certificate to the Board of directors

under clause 49 of the Listing Agreement.

7. DISCLOSURES

8. MEANS OF COMMUNICATION

9. CEO/CFO CERTIFICATION

10. GENERAL SHAREHOLDER'S INFORMATION

(a) Annual General Meeting

(b) Financial Calendar

Day - Friday

Date - August 20, 2010

Time - 11.00 A.M.

Venue - ‘Kalakunj' (Basement Kalamandir), 48,

Shakespeare Sarani, Kolkata – 700 017

Ashiana Housing follows the financial year from April to March. The Unaudited Financial Results for the first three quarters and the Audited Financial Results for the year ended March 31, 2010 were taken on record and approved by the Board of Directors in its meeting(s) held on the following dates:

Quarter Ended Date of Board Meeting

April – June, 2009 July 31, 2009

July – September, 2009 October 28, 2009

October – December, 2009 January 28, 2010

Year Ended March 31, 2010 May 29, 2010

(c) Book Closure

(d) Stock Exchanges

The Company's Register of Members and Share Transfer

books will remain closed from Aug. 16th, 2010 to Aug.

20th, 2010 (both days inclusive) for the purpose of

Annual General Meeting of the Company.

The Company's equity shares are listed on the Bombay

Stock Exchanges the details of which are as follows:

1. The Stock Exchange, Mumbai P.J. 523716

Towers, Dalal Street Mumbai - 400 001

Sl.No.

Security Code No.Name and address of the Stock Exchange

There is no outstanding listing fees payable to Bombay

Stock Exchange.

(e) Dividend paid for the last three years

Sl.No.

Total Amount of Dividend (Rs.)

Date of Declaration Dividend in %

1. September 21, 2007 25 13,382,750

2. September 18, 2008 15 28,103,775

3. For the F.Y. 2008-2009 Nil Nil

(f) Market Price Data:

Monthly High and Low quotation of shares traded on The

Bombay Stock Exchange during the financial year 2009-

10 are as follows:

LowMonth High

April, 2009 47.50 30.30

May, 2009 59.50 35.00

June, 2009 70.35 54.70

July, 2009 56.90 43.05

August, 2009 66.80 47.00

September, 2009 75.50 58.00

October, 2009 117.90 69.60

November, 2009 124.60 78.00

December, 2009 135.00 110.60

January, 2010 135.00 101.20

February, 2010 121.00 93.05

March, 2010 106.95 94.05

For the

Venue Day and

Date WhetherSpecial

ResolutionPassed

2006-07 Kalakunj – Kalamandir, March 30, Friday, Yes

48, Shakespeare Sarani, 2007 10.30 a.m.

Kolkata

2007-08 Bengal National Chamber January15, Tuesday, Yes

of Commerce & Industry, 2008 11.30 a.m.

23 R N Mukherjee Road,

Kolkata- 700001

2009-10 Kalakunj – Kalamandir, 48, May 02, Saturday, Yes

Shakespeare Sarani, Kolkata 2009 10.30 a.m.

Extra Ordinary General Meeting

The Company has its ISIN No. INE 365D 01013 for dematerialisation of equity shares.

SharesShareholders

UPTO 500 8,514 84.31 2,119,333 11.32

501 TO 1000 1,145 11.34 814,349 4.35

1001 TO 2000 241 2.39 340,438 1.82

2001 TO 3000 50 0.50 124,621 0.66

3001 TO 4000 26 0.26 90,129 0.48

4001 TO 5000 14 0.14 64,210 0.34

5001 TO 10000 49 0.49 356,343 1.90

10001 AND ABOVE 59 0.58 14,826,427 79.13

10,098 100.00 18,735,850 100.00

NumbersNumbersNo. of Shares % to total % to total

(h) Distribution of Shareholding as on 31.03.2010:

April09

June09

Sept09

20406080

100120140

s.(g) Share Performance Chart:

No. of sharesShareholders PercentageSl. No.

A. Promoter's Holding

1. Indian Promoters 12,788,874 68.26

B. Non-Promoter's Holding

2. Banks, FIs, Insurance Cos., 800 0.004

(Central/State Govt.

Institutions/ Non-Govt.

Institutions

3. Foreign Institutional Investors 38,950 0.208

C. Others

4. Private Corporate Bodies 1,360,006 7.26

5. Indian Public 4,437,011 23.68

6. NRIs/OCBs 103,810 0.554

7. Others (shares in transit) 6,399 0.034

Grand Total 18,735,850 100.00

(i) Shareholding Pattern (As on 31.03.2010):

(j) Registrar & Transfer Agent :

(k) Share Transfer Process:

(l) Dematerialisation of Shares and Liquidity:

M/s. Beetal Financial & Computer services Pvt. Ltd.,

having its address at Beetal House, 99, Madangir, Behind

Local Shopping Centre, Near Dada Harsukh Das Mandir,

New Delhi -110 062 has been appointed by the

Company for registration of share transfer and other

related work.

The Company's shares being in compulsory demat list are

transferable through the depository system. Shares in

dematerialisation form are processed by the Registrar &

Transfer Agent - M/s Beetal Financial & Computer Service

Pvt. Ltd., Beetal House, 99, Madangir, Near Dada

Harsukh Dass Mandir, Behind Local Shopping Centre,

New Delhi - 110062. Transfer of shares both by Demat

and Physical mode are approved by the 'Transfer and

Shareholders/Investors Grievance Committee'.

The Shares of the company are compulsorily traded in

dematerialised form. In order to enable the shareholders

to hold their shares in electronic form and to facilitate

scripless trading, the Company has enlisted its shares with

National Securities Depository Ltd. and Central

Depository Services (India) Ltd. Out of 1,87,35,850 Equity

Shares of the company 56,87,580 Equity shares have

been dematerialised as on 31.03.2010.

As stipulated by the Securities and Exchange Board of

India, M/s. B. Chhawchharia and Co. Chartered

Accountants, Statutory Auditors of the company, carries

out the Secretarial Audit to reconcile the total admitted

capital with National Securities Depository Limited (NSDL)

and Central Depository Services (India) Ltd. (CDSL) and

the total issued and listed capital. This audit is carried out

every quarter and the Report thereon is submitted to the

Stock Exchanges and is also placed before the Audit

Committee. The audit, inter alia confirms that the total

listed and paid up capital of the company is in agreement

with the aggregate of the total number of shares in

dematerialised form (held with NSDL and CDSL) and the

total number of shares in physical form.

The Board has already formed a Remuneration

Committee. Other non-mandatory requirements are yet to

be adopted.

5F, Everest Unit No. 4&5, 3rd Floor,

6/C, Chowringhee Road Plot No. D-2

Kolkata-700 071 Saket District Centre,

Saket, ND -110 017

(a) Ashiana Trade Centre, Aditya Pur, Jamshedpur -

831 013

( b ) Ashiana Bageecha, Bhagat Singh Colony, Bhiwadi,

Rajasthan

( c ) 413, Ashiana Tower, Exhibition Road, Patna -

800 001

( d ) 604, Apex Mall, Tonk Road, Lal Kothi, Jaipur

( e ) Vill. Kuri Bhagtasani, Pali Road, Jodhpur

( f ) The Business Centre, Office No. 2, 2nd Floor,

Purushottam Plaza, Baner Road, Pune - 411 045

Shareholders are advised to correspond the Registrar &

Share Transfer Agent – M/s. Beetal Financial & Computer

Services Private Ltd. , Beetal House, 99, Madangir, Near

Dada Harsukh Dass Mandir, Behind Local Shopping

Centre, New Delhi – 110 062 for any query regarding

Share Transfer / Transmission etc. and other related

matter or may contact Mr. Bhagwan Kumar, Company

Secretary and Compliance Officer on Phone

No. 011 - 4265 4265; Fax No. 011 - 4265 4200; and

E-mail: [email protected].

Place : New Delhi Vishal Gupta - MD

Dated : May 29, 2010 Ankur Gupta - Jt. MD

(m) Secretarial Audit Report

(n) Compliance with Non Mandatory Requirements:

(o) Office Locations

Registered Office: Head Office &

Share Dept.:

Branch Offices:

11. ADDRESS FOR CORRESPONDENCE

A UDITOR’S CERTIFICATE

To The Members of

Ashiana Housing Limited

We have examined the compliance of conditions of

corporate governance by M/s. Ashiana Housing Ltd. for

the year ended March 31, 2010 as stipulated in clause

49 of the Listing Agreement of the said Company with

Stock Exchanges.

The compliance of conditions of corporate governance is

the responsibility of the company. Our examination was

limited to the procedures and implementation thereof,

adopted by the Company for ensuring compliance of

conditions of Corporate Governance. It is neither an

audit nor an expression of opinion on the financial

statements of the Company.

In our opinion and to the best of information and

according to the explanations given to us, we certify

that the Company has complied with the conditions of

corporate governance as stipulated in the above

mentioned Listing Agreement.

As required by the Guidance Note issued by the Institute

of Chartered Accountants of India, we have to state that

no investor grievance is pending for a period exceeding

one month against the Company as per the records

maintained by the Company.

We further 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 has conducted the affairs of the Company,

For B. Chhawchharia & Co.

Chartered Accountants

Place: Gurgaon Vinit Bagaria

Date: May 29, 2010 Partner

A UDITOR’S REPORT

The Members of Ashiana Housing Limited

We have audited the attached Balance Sheet of Ashiana

Housing Limited as at March 31, 2010, 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.

We have conducted our audit in accordance with the

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, evidence

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.

As required by the Companies (Auditor’s Report)

Order, 2003 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.

Further to our comments in the Annexure referred to

above, we report that:

(i) We have obtained all the information and

explanations, which to the best of our knowledge and

belief were necessary for the purposes of our audit;

(ii) 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 those books;

(iii) The Balance Sheet, profit and loss account and cash

flow statement dealt with by this report are in agreement

with the books of account;

(iv) Subject to our comments hereinafter, the Balance

Sheet, profit and loss account and cash flow statement

dealt with by this report comply with the accounting

standards referred to in sub-section (3C) of section 211

of the Companies Act, 1956;

(v) On the basis of written representations received from

the directors, as on March 31, 2010 and taken on

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

the directors is disqualified as on March 31, 2010 from

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

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

(vi) In our opinion and to the best of our information and

according to the explanations given to us, the said

accounts read with significant Accounting Policies and

Notes to the Accounts, give the information required by

the Companies Act, 1956, in the manner so required

give a true and fair view in conformity with the

accounting principles generally accepted in India:

(a) in the case of the balance sheet, of the state of

affairs of the company as at March 31, 2010;

(b) in the case of the profit and loss account, of the profit

for the year ended on that date; and

(c) in the case of the cash flow statement, of the cash

flows for the year ended on that date.

For B. CHHAWCHHARIA & Co.

(VINIT BAGARIA)

Partner

Firm Registration No: 305123E

Membership Number: 500872

Place: Gurgaon

Date: May 29, 2010

A UDITOR’S CERTIFICATE

To The Members of

Ashiana Housing Limited

We have examined the compliance of conditions of

corporate governance by M/s. Ashiana Housing Ltd. for

the year ended March 31, 2010 as stipulated in clause

49 of the Listing Agreement of the said Company with

Stock Exchanges.

The compliance of conditions of corporate governance is

the responsibility of the company. Our examination was

limited to the procedures and implementation thereof,

adopted by the Company for ensuring compliance of

conditions of Corporate Governance. It is neither an

audit nor an expression of opinion on the financial

statements of the Company.

In our opinion and to the best of information and

according to the explanations given to us, we certify

that the Company has complied with the conditions of

corporate governance as stipulated in the above

mentioned Listing Agreement.

As required by the Guidance Note issued by the Institute

of Chartered Accountants of India, we have to state that

no investor grievance is pending for a period exceeding

one month against the Company as per the records

maintained by the Company.

We further 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 has conducted the affairs of the Company,

For B. Chhawchharia & Co.

Place: Gurgaon Vinit Bagaria

Date: May 29, 2010 Partner

A UDITOR’S REPORT

The Members of Ashiana Housing Limited

We have audited the attached Balance Sheet of Ashiana

Housing Limited as at March 31, 2010, and also the

audit.

audit provides a reasonable basis for our opinion.

(iii) The Balance Sheet, profit and loss account and cash

flow statement dealt with by this report are in agreement

with the books of account;

Sheet, profit and loss account and cash flow statement

dealt with by this report comply with the accounting

standards referred to in sub-section (3C) of section 211

of the Companies Act, 1956;

(a) in the case of the balance sheet, of the state of

affairs of the company as at March 31, 2010;

(VINIT BAGARIA)

Partner

Place: Gurgaon

Date: May 29, 2010

A NNEXURE TO THE AUDITOR’S

REPORT

Referred to in paragraph 1 of our Report of even date for

the year ended March 31, 2010.

(a) The company’s records showing full particulars

including quantitative details and situation of fixed assets

is being updated by the company.

(b) According to the information and explanation given

to us, all the fixed assets and capital work in progress

have not been physically verified by the management

during the year but there is a regular program of

verification which, in our opinion, is reasonable having

regard to the size of the Company and nature of its

assets. As explained, no material discrepancies were

noticed on such verification.

(c) In our opinion and according to the information and

explanations given to us, the Company has not disposed

substantial part of its fixed assets during the year.

(a) According to the information and explanations

given to us, the management has physically verified the

inventory during the year. In our opinion, the frequency

of verification is reasonable.

(b) In our opinion, the procedures of physical

verification of inventories followed by the management

are reasonable and adequate in relation to the size of

the company and the nature of its business.

(c) On the basis of our examination of the records of

inventory, we are of the opinion that the company is

maintaining proper records of inventory. The

discrepancies noticed on verification between the

physical stocks and the book records were not material.

(a) The Company has granted unsecured loan to one

company covered in the Register maintained under

Section 301 of the Companies Act, 1956. The maximum

amount involved during the year was Rs. 101 lakhs and

year end balance of loans given to such company was

Rs. Nil.

(b) In our opinion the rate of interest and other terms and

conditions on which loans has been given to the

company listed in the register maintained under Section

301 of the Companies Act, 1956 is, prima facie, not

prejudicial to the interest of the company.

(c) The company is regular in receiving the principal

amounts as per stipulation and has been regular in the

receipt of interest, as applicable.

(d) As explained to us there is no overdue amount of loan

given to the company listed in the register maintained

under section 301 of the Companies Act, 1956.

(e) The company has not taken any unsecured loans from

companies, parties or other concern covered in the

register maintained under Section 301 of the

Companies Act, 1956.

In our opinion and according to the information and

explanations given to us, there are adequate internal

control procedures commensurate with the size of the

company and the nature of its business with regard to

purchases of inventory and fixed assets and with regard

to the sale of constructed units and services. During the

course of our audit, we have not observed any

continuing failure to correct major weakness in internal

controls.

given to us, we are of the opinion that the particulars of

contracts and arrangements referred to in Section 301 of

the Companies Act, 1956 that need to be entered into

the register maintained under that Section have been so

entered.

(b) In our opinion and according to the information and

explanations given to us, the transactions that were

made in pursuance of contracts or arrangements that

need to be entered into the register maintained in

pursuance of Section 301 of the Companies Act, 1956

and aggregating during the year to Rs. 5 Lakhs or more,

in respect of each party, have been made at prices which

are reasonable having regard to the prevailing market

prices at the relevant time.

explanations given to us, the company has not accepted

any deposits from the public.

In our opinion, the company has an internal audit

system commensurate with the size and nature of its

business.

As informed to us maintenance of cost records under

Section 209 (1) (d) of the Companies Act, 1956 is not

applicable to the company.

(a) According to the records of the company,

generally the company is regular in depositing with

appropriate authorities undisputed statutory dues

including provident fund, investor education and

protection fund, employees’ state insurance, income tax,

sales tax, wealth tax, service tax, custom duty, excise

duty, cess and other material statutory dues, as

applicable, and no such statutory dues were outstanding

as at the last day of the financial year under review for a

period of more than six months from the date they

became payable.

(b) There are no dues of Income Tax, Sales Tax, Wealth

Tax, Service Tax, Customs Duty, Excise Duty and Cess, as

applicable, which have not been deposited on account

of any dispute except as detailed below:

Name of Nature of Amount Rs. Relating Forum where

the Statute the Dues (Lakhs) to the year dispute

Pending

Appellant

Tribunal and

Income Income Tax 7.51 1989-1990 Commissioner

Tax Act, of Income Tax

The company does not have accumulated losses.

The company has not incurred any cash losses during the

financial year covered by our audit and the immediately

preceding financial year.

In our opinion and according to the information

and explanations given to us, the company has not

defaulted in repayment of dues to a financial institution,

bank or debenture holder.

As per information and explanations provided to us

the company has not granted any loans and advances

on the basis of security by way of pledge of shares,

debentures and other securities.

In our opinion the company is not a chit fund or a

nidhi/ mutual benefit fund/ society.

The company is not dealing or trading in shares,

securities, debentures and other investments. However,

Investments of the Company are held in its own name.

According to the information and explanations

given to us, the company has given corporate guarantee

for loan taken by M/s. Ashiana Greenwood Developers,

a firm in which the company is a partner, the terms and

conditions whereof are not prejudicial to the interest of

the company.

The Company has not taken any Term Loan during

the year concerned.

According to the information and explanations given

to us and on an overall examination of the balance sheet

of the company, we report that the no funds raised on

short - term basis have been used for long - term

investment except permanent working capital.

The company has not made any preferential

allotment of shares to parties and companies covered in

the register maintained under section 301 of the

During the period covered by our audit report, the

company has not issued any debentures.

The company has not raised money by public issues

during the financial year concerned.

given to us, no fraud on or by the company has been

noticed or reported during the course of our audit.

(VINIT BAGARIA)

Partner

Place: Gurgaon

Date: May 29, 2010

REPORT

(b) According to the information and explanation given

to us, all the fixed assets and capital work in progress

have not been physically verified by the management

during the year but there is a regular program of

verification which, in our opinion, is reasonable having

regard to the size of the Company and nature of its

assets. As explained, no material discrepancies were

noticed on such verification.

(c) In our opinion and according to the information and

explanations given to us, the Company has not disposed

substantial part of its fixed assets during the year.

(b) In our opinion, the procedures of physical

verification of inventories followed by the management

are reasonable and adequate in relation to the size of

the company and the nature of its business.

(a) The Company has granted unsecured loan to one

company covered in the Register maintained under

Section 301 of the Companies Act, 1956. The maximum

amount involved during the year was Rs. 101 lakhs and

year end balance of loans given to such company was

Rs. Nil.

(b) In our opinion the rate of interest and other terms and

conditions on which loans has been given to the

company listed in the register maintained under Section

301 of the Companies Act, 1956 is, prima facie, not

prejudicial to the interest of the company.

(c) The company is regular in receiving the principal

receipt of interest, as applicable.

(d) As explained to us there is no overdue amount of loan

given to the company listed in the register maintained

(e) The company has not taken any unsecured loans from

companies, parties or other concern covered in the

register maintained under Section 301 of the

to the sale of constructed units and services. During the

course of our audit, we have not observed any

continuing failure to correct major weakness in internal

controls.

entered.

and aggregating during the year to Rs. 5 Lakhs or more,

in respect of each party, have been made at prices which

are reasonable having regard to the prevailing market

prices at the relevant time.

In our opinion, the company has an internal audit

system commensurate with the size and nature of its

business.

As informed to us maintenance of cost records under

Section 209 (1) (d) of the Companies Act, 1956 is not

applicable to the company.

became payable.

(b) There are no dues of Income Tax, Sales Tax, Wealth

Tax, Service Tax, Customs Duty, Excise Duty and Cess, as

of any dispute except as detailed below:

Name of Nature of Amount Rs. Relating Forum where

the Statute the Dues (Lakhs) to the year dispute

Pending

Appellant

Tribunal and

Income Income Tax 7.51 1989-1990 Commissioner

Tax Act, of Income Tax

defaulted in repayment of dues to a financial institution,

bank or debenture holder.

In our opinion the company is not a chit fund or a

nidhi/ mutual benefit fund/ society.

given to us, the company has given corporate guarantee

for loan taken by M/s. Ashiana Greenwood Developers,

a firm in which the company is a partner, the terms and

conditions whereof are not prejudicial to the interest of

the company.

the year concerned.

According to the information and explanations given

to us and on an overall examination of the balance sheet

of the company, we report that the no funds raised on

short - term basis have been used for long - term

investment except permanent working capital.

During the period covered by our audit report, the

company has not issued any debentures.

The company has not raised money by public issues

during the financial year concerned.

given to us, no fraud on or by the company has been

noticed or reported during the course of our audit.

(VINIT BAGARIA)

Partner

Place: Gurgaon

Date: May 29, 2010

BALANCE SHEET OF ASHIANA

HOUSING LTD. AS AT

MARCH 31, 2010

Schedules As at 31/03/2010 As at 31/03/2009

Rs. Rs. Rs. Rs.

SOURCES OF FUNDS

Shareholders' Funds:

Share Capital 1 187,358,500 187,358,500

Reserves & Surplus 2 1,034,791,132 1,222,149,632 711,479,121 898,837,621

Loan Funds:

Secured Loans 3 77,784,239 7,123,532

Deferred Tax Liability 4 15,187,000 7,518,000

APPLICATION OF FUNDS

Fixed Assets: 5

(a) Gross Block 214,826,539 193,660,562

(b) Less: Depreciation 34,241,709 25,649,741

(c) Net Block

(d) Capital Work in Progress 168,010,821

Investments 6 651,596,494 481,150,630

Current Assets, Loans & Advances:

(a) Inventories 7 676,048,239 577,273,271

(b) Sundry Debtors 8 396,808 5,220,259

(c) Cash & Bank balances 9 119,214,220 110,297,335

(d) Loans & Advances 10 162,922,320 161,412,195

Less: Current Liabilities & Provisions 11

Net Current Assets 482,836,847 264,317,702

NOTES ON ACCOUNTS 21

BALANCE SHEET ABSTRACT AND

COMPANY'S

GENERAL BUSINESS PROFILE 22

1,315,120,871 913,479,153

180,584,830 168,010,821

102,700 180,687,530

958,581,587 854,203,060

475,744,740 589,885,358

1,315,120,871 913,479,153

PROFIT & LOSS ACCOUNT OF

ASHIANA HOUSING LTD. FOR THE

YEAR ENDED MARCH 31, 2010

Schedules 2009-2010 2008-2009

Rs. Rs.

INCOME

Sales 12 1,053,761,283 827,046,986

Other Income 13 56,371,440 107,120,615

EXPENDITURE

Direct Costs:

Purchases 14 20,934,654 82,541,437

Project Expenses 15 244,534,339 190,792,214

Ongoing Project Expenses Adjusted 329,633,670 393,652,944

Decrease/ (Increase) in Stock 16 (91,086,308) (174,543,824)

504,016,355 492,442,771

Expenses on Employees 17 61,597,067 57,407,341

Cost of borrowing 18 10,489,533 1,247,196

Depreciation 10,166,852 10,071,840

Other expenses 19 93,439,615 81,534,154

PROFIT FOR THE YEAR 430,423,301 291,464,299

Less: Direct Taxes 20 76,372,748 31,685,684

PROFIT AFTER TAX 354,050,553 259,778,615

Surplus brought forward from the previous year 19,979,121 10,200,506

Appropriations:

Transfer to General Reserve 320,000,000 250,000,000

Proposed Dividend 28,103,775 -

Corporate Dividend Tax 2,634,767 -

Surplus Carried to Balance Sheet

ADJUSTED EARNING PER SHARE

(On Shares of nominal Value of Rs. 10/- each)

Basic & Diluted 18.90 13.87

1,110,132,723 934,167,601

679,709,422 642,703,302

374,029,674 269,979,121

23,291,132 19,979,121

The Schedules referred above form an integral part of the accounts. In terms of our report of even date attached herewith

For B. CHHAWCHHARIA & CO. For and on behalf of the Board

VINIT BAGARIA Bhagwan Kumar Manojit Sengupta Vishal Gupta Varun Gupta

Partner Company Secretary General Manager (F&A) Managing Director Director

Place: Gurgaon Place: New Delhi

Date: May 29, 2010 Date: May 29, 2010

HOUSING LTD. AS AT

MARCH 31, 2010

Rs. Rs. Rs. Rs.

SOURCES OF FUNDS

Share Capital 1 187,358,500 187,358,500

Reserves & Surplus 2 1,034,791,132 1,222,149,632 711,479,121 898,837,621

Loan Funds:

Secured Loans 3 77,784,239 7,123,532

Fixed Assets: 5

(a) Gross Block 214,826,539 193,660,562

(c) Net Block

(d) Capital Work in Progress 168,010,821

Investments 6 651,596,494 481,150,630

(a) Inventories 7 676,048,239 577,273,271

(b) Sundry Debtors 8 396,808 5,220,259

(d) Loans & Advances 10 162,922,320 161,412,195

COMPANY'S

1,315,120,871 913,479,153

180,584,830 168,010,821

102,700 180,687,530

958,581,587 854,203,060

475,744,740 589,885,358

1,315,120,871 913,479,153

PROFIT & LOSS ACCOUNT OF

ASHIANA HOUSING LTD. FOR THE

Schedules 2009-2010 2008-2009

Rs. Rs.

INCOME

Sales 12 1,053,761,283 827,046,986

Other Income 13 56,371,440 107,120,615

EXPENDITURE

Direct Costs:

Purchases 14 20,934,654 82,541,437

Ongoing Project Expenses Adjusted 329,633,670 393,652,944

Decrease/ (Increase) in Stock 16 (91,086,308) (174,543,824)

504,016,355 492,442,771

Cost of borrowing 18 10,489,533 1,247,196

Depreciation 10,166,852 10,071,840

Other expenses 19 93,439,615 81,534,154

PROFIT AFTER TAX 354,050,553 259,778,615

Appropriations:

Surplus Carried to Balance Sheet

ADJUSTED EARNING PER SHARE

1,110,132,723 934,167,601

679,709,422 642,703,302

374,029,674 269,979,121

23,291,132 19,979,121

Date: May 29, 2010 Date: May 29, 2010

CHEDULES TO THE ACCOUNTS

As at 31/03/2010SCHEDULES TO THE ACCOUNTS

Rs. Rs.

1. SHARE CAPITAL

Authorised:

25000000 Equity shares of Rs. 10/- each 250,000,000 250,000,000

Issued, Subscribed and Paid up :

18735850 Equity shares of Rs. 10/- each fully paid up 187,358,500 187,358,500

2. RESERVES & SURPLUS

Capital Reserve 1,500,000 1,500,000

General Reserves :

As per last Balance Sheet 690,000,000 440,000,000

Add : Transfer from Profit & Loss A/c 320,000,000 250,000,000

1,010,000,000 690,000,000

Profit & Loss Account 23,291,132 19,979,121

3. SECURED LOANS

(I) Construction Loan - From HDFC limited* 67,468,238 -

Secured by way of (i) first exclusive mortgage on land in Ashiana

Aangan Project along with construction thereon, both present and

future and (ii) assignment of receivables from the said project.

(II) Vehicle Loan from*

Axis Bank Limited 526,512 -

HDFC Bank Limited 7,761,688 3,721,315

Tata Capital Ltd 1,649,666 2,866,166

Tata Motors Finance Ltd 378,135 536,051

(Secured against hypothecation of vehicles financed by them)

* Includes Rs. 72,122,431/- due within 12 months

4. DEFERRED TAX LIABILITY (NET)

Deferred Tax Liability on Fiscal allowance of fixed assets 16,758,000 13,408,000

Less: Deferred Tax Assets on

Unabsorbed losses and provisions 22,000 4,460,000

Employee Benefits 1,549,000 1,430,000

187,358,500 187,358,500

1,034,791,132 711,479,121

77,784,239 7,123,532

15,187,000 7,518,000

As at 31/03/2009

GROSS BLOCK DEPRECIATION NET BLOCK

01-04-2009

Additions/

(Deductions)

31-03-2010

31-03-2009

For the Year

(adjustments)

31-03-2010

31-03-2009

GOODWILL 100,000 - 100,000 - - - 100,000 100,000

BUILDING 46,414,671 - *44,590,652 3,909,554 713,582 4,333,726 40,256,926 42,505,117

(1,824,020) (289,410)

PLANT & MACHINERY 90,881,684 12,929,695 103,811,379 9,091,960 4,562,886 13,654,847 90,156,532 81,789,724

FURNITURE & FIXTURES 12,073,378 2,815,753 14,822,321 1,701,069 838,980 2,512,027 12,310,293 10,372,309

(66,810) (28,021)

ELECTRICAL INSTALLATIONS 4,091,634 479,494 4,571,128 1,232,392 200,915 1,433,307 3,137,821 2,859,242

EQUIPMENTS AND FACILITIES 13,992,846 897,795 14,883,923 3,428,928 679,585 4,103,748 10,780,175 10,563,919

(6,718) (4,764) -

COMPUTERS 8,363,166 2,058,772 10,421,938 2,823,350 1,394,778 4,218,127 6,203,811 5,539,817

VEHICLES 17,743,183 9,076,333 21,625,198 3,462,490 1,776,126 3,985,927 17,639,271 14,280,693

CAPITAL WORK IN PROGRESS - 102,700 102,700 - - - 102,700 -

PREVIOUS YEAR FIGURES 154,482,534 75,487,607 193,660,562 17,958,498 10,071,840 25,649,741 168,010,821 -

(36,309,579) (2,380,597)

(5,194,318) (1,252,690)

TOTAL 193,660,562 28,257,842 214,826,539 25,649,743 10,166,852 34,241,709 180,584,830 168,010,821

(7,091,866) (1,574,885)

GRAND TOTAL 193,660,562 28,360,542 214,929,239 25,649,743 10,166,852 34,241,709 180,687,530 168,010,821

(7,091,866) (1,574,885)

5. FIXED ASSETS

SCHEDULES TO THE ACCOUNTS

Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs.

No. of Shares/

As at 31/03/2010 No. of Shares/

Rs. Nos. Rs. Nos. Rs.

1. In fully paid up Equity Shares:

Subsidiary Companies (Unquoted)

Ashiana Retirement Villages Ltd. 10 9,240,050 92,412,550 9,240,050 92,412,550

Vatika Marketing Ltd. 10 50,000 520,120 50,000 520,120

Others:

Arihant Foundation Ltd. 10 100 34,186 100 34,186

Eldco Housing Ltd. 10 100 20,942 100 20,942

HDFC Ltd. 10 50 84,969 50 84,969

Ispat Profile Ltd. 10 100 782 100 782

Larsen & Tubro Ltd. (includes 10 bonus shares) 2 20 17,598 20 17,598

Lok Housing Ltd. 10 100 18,906 100 18,906

Mahindra Lifespace Developers Ltd. 10 50 31,068 50 31,068

Modern Threads Ltd. 10 23 280 23 280

Modern Woolen Ltd. 10 50 1,575 50 1,575

(A) LONG TERM INVESTMENTS

i. Quoted

6. INVESTMENTSAs at 31/03/2009

* Includes Buildings of Rs.39,874,160/-pending registration in the name of the company

Rs. Rs.

1. SHARE CAPITAL

Authorised:

Capital Reserve 1,500,000 1,500,000

General Reserves :

Add : Transfer from Profit & Loss A/c 320,000,000 250,000,000

1,010,000,000 690,000,000

3. SECURED LOANS

(I) Construction Loan - From HDFC limited* 67,468,238 -

Secured by way of (i) first exclusive mortgage on land in Ashiana

Aangan Project along with construction thereon, both present and

future and (ii) assignment of receivables from the said project.

(II) Vehicle Loan from*

Tata Capital Ltd 1,649,666 2,866,166

* Includes Rs. 72,122,431/- due within 12 months

Unabsorbed losses and provisions 22,000 4,460,000

187,358,500 187,358,500

1,034,791,132 711,479,121

77,784,239 7,123,532

15,187,000 7,518,000

As at 31/03/2009

01-04-2009

Additions/

(Deductions)

31-03-2010

31-03-2009

For the Year

(adjustments)

31-03-2010

31-03-2009

GOODWILL 100,000 - 100,000 - - - 100,000 100,000

BUILDING 46,414,671 - *44,590,652 3,909,554 713,582 4,333,726 40,256,926 42,505,117

(1,824,020) (289,410)

PLANT & MACHINERY 90,881,684 12,929,695 103,811,379 9,091,960 4,562,886 13,654,847 90,156,532 81,789,724

FURNITURE & FIXTURES 12,073,378 2,815,753 14,822,321 1,701,069 838,980 2,512,027 12,310,293 10,372,309

(66,810) (28,021)

EQUIPMENTS AND FACILITIES 13,992,846 897,795 14,883,923 3,428,928 679,585 4,103,748 10,780,175 10,563,919

(6,718) (4,764) -

COMPUTERS 8,363,166 2,058,772 10,421,938 2,823,350 1,394,778 4,218,127 6,203,811 5,539,817

VEHICLES 17,743,183 9,076,333 21,625,198 3,462,490 1,776,126 3,985,927 17,639,271 14,280,693

CAPITAL WORK IN PROGRESS - 102,700 102,700 - - - 102,700 -

PREVIOUS YEAR FIGURES 154,482,534 75,487,607 193,660,562 17,958,498 10,071,840 25,649,741 168,010,821 -

(36,309,579) (2,380,597)

(5,194,318) (1,252,690)

TOTAL 193,660,562 28,257,842 214,826,539 25,649,743 10,166,852 34,241,709 180,584,830 168,010,821

(7,091,866) (1,574,885)

GRAND TOTAL 193,660,562 28,360,542 214,929,239 25,649,743 10,166,852 34,241,709 180,687,530 168,010,821

(7,091,866) (1,574,885)

5. FIXED ASSETS

No. of Shares/

1. In fully paid up Equity Shares:

Subsidiary Companies (Unquoted)

Ashiana Retirement Villages Ltd. 10 9,240,050 92,412,550 9,240,050 92,412,550

Vatika Marketing Ltd. 10 50,000 520,120 50,000 520,120

Others:

Arihant Foundation Ltd. 10 100 34,186 100 34,186

Eldco Housing Ltd. 10 100 20,942 100 20,942

HDFC Ltd. 10 50 84,969 50 84,969

Ispat Profile Ltd. 10 100 782 100 782

Larsen & Tubro Ltd. (includes 10 bonus shares) 2 20 17,598 20 17,598

Lok Housing Ltd. 10 100 18,906 100 18,906

Mahindra Lifespace Developers Ltd. 10 50 31,068 50 31,068

Modern Threads Ltd. 10 23 280 23 280

Modern Woolen Ltd. 10 50 1,575 50 1,575

(A) LONG TERM INVESTMENTS

i. Quoted

6. INVESTMENTSAs at 31/03/2009

* Includes Buildings of Rs.39,874,160/-pending registration in the name of the company

No. of Shares/

Parsvnath Developers Ltd. 10 100 32,973 100 32,973

S.M. Telesys Ltd. 10 2,500 25,000 2,500 25,000

Sobha Developers Ltd. 10 50 43,732 50 43,732

Spectrum Commercials Ltd. 10 132,000 330,775 132,000 330,775

Timken India Ltd. 10 54 3,696 54 3,696

Unitech Limited (includes 50 bonus shares) 10 100 21,597 100 21,597

Elite Leasings Ltd. 10 3,750 6,218 3,750 6,218

Adityapur Toll Bridge Company Ltd. 10 20,000 200,000 20,000 200,000

2. In Partly paid Debentures:

Subsidiary Company (Unquoted)

Ashiana Retirement Villages Ltd. -

Zero Percent Unsecured Optionally Fully Convertible Debentures

Series - II (paid up Rs.94 per debenture) 100 1,000,000 94,000,000 1,000,000 94,000,000

Series - III (paid up Rs.50 per debenture) 100 2,000,000 100,000,000 - -

3. In Immoveable Properties:

Building at W-177, Greater Kailash - II, New Delhi 32,939,879 32,939,879

Land at Vasundhara Nagar, Phase II, Bhiwadi, Rajasthan 11,021,003 11,021,003

Land at RIICO Industrial Area, Bhiwadi, Rajasthan 1,782,139 1,782,139

Building at Ashiana Plaza, Patna 1,616,571 1,616,571

4. In Capital of Partnership Firms

Ashiana Amar Developers 125,908,866 113,382,801

Ashiana Amar Infrastructure 14,132,617 14,114,801

Megha Colonizers 62,830,559 -

Ashiana Greenwood Developers 108,476,808 83,083,433

In Mutual Funds

HDFC Growth Fund - Dividend Reinvestment 10 - - 52,595.1700 1,396,664

DWS Money Plus Advantage Fund Div Reinvestment 10 487,974.63 5,146,720 - -

HDFC Growth Fund - Growth 10 - - 11,433.4800 800,000

Tata Contra Fund - Growth 10 - - 50,000.0000 500,000

SBI Blue Chip Fund - Dividend Reinvestment 10 - - 57,363.7700 600,000

Prudential ICICI Infrastructure Fund - Dividend Re-investment 10 - - 6,250.8900 97,893

Fidelity Equity Fund - Growth 10 - - 33,702.0389 900,000

SBI Magnum Global Fund - Dividend 10 - - 27,601.4350 1,000,000

Tata Infrastructure Fund - Growth 10 - - 40,196.4800 1,000,000

HDFC Index Fund-Series Plus Plan 10 - - 10,914.3600 1,800,000

HDFC FMP 370D MAY 2008(VIII) (2) Wholesale - Growth 10 - - 1,000,000.0000 10,000,000

Sundaram BNP Paribas Fixed Term Plan - 16 Inst Growth 10 - - 1,000,000.0000 10,000,000

IDFC Fixed Maturity Plan-Yearly Series 21 - Plan B - G 10 - - 1,000,000.0000 10,000,000

HSBC Advantage India Fund - Growth 10 - - 45,994.2600 800,000

5,146,720 38,894,557

Less: Provision for Dimunition in value of current Investments 65,635 3,491,521

5,081,085 35,403,036

Aggregate amount of Quoted Investments 668,079 668,079

Aggregate amount of Unquoted Investments 650,928,415 480,482,551

Market value of quoted Investments 613,081 467,217

Repurchase price of units of mutual funds 5,081,085 37,902,636

ii. Unquoted

(A) 646,515,409 445,747,594

(B) CURRENT INVESTMENTS

Unquoted

TOTAL (A + B) 651,596,494 481,150,630

As at 31/03/2009 As at 31/03/2010SCHEDULES TO THE ACCOUNTS

Rs. Rs.

7. INVENTORIES

Leasehold Land 175,182,138 180,163,307

Freehold land 52,254,522 37,395,080

Unsold completed constructions 116,696,576 86,304,721

Work-in-progress 286,644,761 233,443,282

Construction materials 45,270,242 39,966,881

8. SUNDRY DEBTORS

(Unsecured, Considered Good)

Due for more than six months 128,265 1,995,888

Other Debts 268,543 3,224,371

9. CASH AND BANK BALANCES

Cash-in-hand 205,355 305,657

Cheques-in-hand 462,000 312,528

Balances with Scheduled Banks :

In Current Accounts 45,519,730 12,396,351

In Unclaimed Dividend Account 3,790,041 3,834,698

In Fixed Deposit Accounts (Pledged/ liened with Banks & Financial 69,237,094 93,448,101

Institution Rs. 26,059,473/-; P.Y. Rs. 49,804,900/-)

10. LOANS AND ADVANCES

(Unsecured, considered good)

- To Subsidiary Company - 10,000,000

- To Others - 1,575

Advance against land etc 14,632,416 45,000,000

Advances recoverable in cash or in kind or for value to be received 14,958,761 26,083,776

Taxation advance and refundable 129,475,928 76,216,965

Deposits 3,855,215 4,109,879

11. CURRENT LIABILITIES & PROVISIONS

Sundry Creditors 29,340,588 50,371,613

Advance from Customers 1,157,809,366 1,337,632,435

Less: Ongoing Projects Adjustment Account 976,032,865 953,189,537

181,776,501 384,442,898

Security deposits 39,797,520 34,534,971

Due to subsidiary companies 1,166,514 38,901

Unclaimed Dividend 3,790,041 3,834,698

Other liabilities 35,085,522 19,413,121

290,956,686 492,636,202

For Taxation 149,493,000 93,041,000

For Proposed Dividend 28,103,775 -

For Corporate Dividend Tax 2,634,767 -

For Gratuity 4,556,512 4,208,156

12. SALES

(a) Completed Projects (on Possession) 359,485,370 163,883,511

(b) Ongoing Projects 694,275,913 661,546,904

(c) Transfer to Investments - 1,616,571

676,048,239 577,273,271

396,808 5,220,259

119,214,220 110,297,335

162,922,320 161,412,195

(A) CURRENT LIABILITIES

(B) PROVISIONS

475,744,740 589,885,358

Real Estate:

1,053,761,283 827,046,986

2008 - 2009Rs.

As at 31/03/2009

2009 - 2010Rs.

No. of Shares/

Parsvnath Developers Ltd. 10 100 32,973 100 32,973

S.M. Telesys Ltd. 10 2,500 25,000 2,500 25,000

Sobha Developers Ltd. 10 50 43,732 50 43,732

Spectrum Commercials Ltd. 10 132,000 330,775 132,000 330,775

Timken India Ltd. 10 54 3,696 54 3,696

Unitech Limited (includes 50 bonus shares) 10 100 21,597 100 21,597

Elite Leasings Ltd. 10 3,750 6,218 3,750 6,218

Adityapur Toll Bridge Company Ltd. 10 20,000 200,000 20,000 200,000

2. In Partly paid Debentures:

Subsidiary Company (Unquoted)

Ashiana Retirement Villages Ltd. -

Zero Percent Unsecured Optionally Fully Convertible Debentures

Series - II (paid up Rs.94 per debenture) 100 1,000,000 94,000,000 1,000,000 94,000,000

Series - III (paid up Rs.50 per debenture) 100 2,000,000 100,000,000 - -

3. In Immoveable Properties:

Building at W-177, Greater Kailash - II, New Delhi 32,939,879 32,939,879

Land at Vasundhara Nagar, Phase II, Bhiwadi, Rajasthan 11,021,003 11,021,003

Land at RIICO Industrial Area, Bhiwadi, Rajasthan 1,782,139 1,782,139

Building at Ashiana Plaza, Patna 1,616,571 1,616,571

4. In Capital of Partnership Firms

Ashiana Amar Developers 125,908,866 113,382,801

Ashiana Amar Infrastructure 14,132,617 14,114,801

Megha Colonizers 62,830,559 -

Ashiana Greenwood Developers 108,476,808 83,083,433

In Mutual Funds

HDFC Growth Fund - Dividend Reinvestment 10 - - 52,595.1700 1,396,664

DWS Money Plus Advantage Fund Div Reinvestment 10 487,974.63 5,146,720 - -

HDFC Growth Fund - Growth 10 - - 11,433.4800 800,000

Tata Contra Fund - Growth 10 - - 50,000.0000 500,000

SBI Blue Chip Fund - Dividend Reinvestment 10 - - 57,363.7700 600,000

Prudential ICICI Infrastructure Fund - Dividend Re-investment 10 - - 6,250.8900 97,893

Fidelity Equity Fund - Growth 10 - - 33,702.0389 900,000

SBI Magnum Global Fund - Dividend 10 - - 27,601.4350 1,000,000

Tata Infrastructure Fund - Growth 10 - - 40,196.4800 1,000,000

HDFC Index Fund-Series Plus Plan 10 - - 10,914.3600 1,800,000

HDFC FMP 370D MAY 2008(VIII) (2) Wholesale - Growth 10 - - 1,000,000.0000 10,000,000

Sundaram BNP Paribas Fixed Term Plan - 16 Inst Growth 10 - - 1,000,000.0000 10,000,000

IDFC Fixed Maturity Plan-Yearly Series 21 - Plan B - G 10 - - 1,000,000.0000 10,000,000

HSBC Advantage India Fund - Growth 10 - - 45,994.2600 800,000

5,146,720 38,894,557

Less: Provision for Dimunition in value of current Investments 65,635 3,491,521

5,081,085 35,403,036

Aggregate amount of Quoted Investments 668,079 668,079

Aggregate amount of Unquoted Investments 650,928,415 480,482,551

Market value of quoted Investments 613,081 467,217

Repurchase price of units of mutual funds 5,081,085 37,902,636

ii. Unquoted

(A) 646,515,409 445,747,594

(B) CURRENT INVESTMENTS

Unquoted

TOTAL (A + B) 651,596,494 481,150,630

Rs. Rs.

7. INVENTORIES

Leasehold Land 175,182,138 180,163,307

Freehold land 52,254,522 37,395,080

Work-in-progress 286,644,761 233,443,282

Construction materials 45,270,242 39,966,881

8. SUNDRY DEBTORS

Other Debts 268,543 3,224,371

Cash-in-hand 205,355 305,657

Balances with Scheduled Banks :

In Unclaimed Dividend Account 3,790,041 3,834,698

In Fixed Deposit Accounts (Pledged/ liened with Banks & Financial 69,237,094 93,448,101

Institution Rs. 26,059,473/-; P.Y. Rs. 49,804,900/-)

- To Subsidiary Company - 10,000,000

- To Others - 1,575

Advance against land etc 14,632,416 45,000,000

Deposits 3,855,215 4,109,879

181,776,501 384,442,898

Due to subsidiary companies 1,166,514 38,901

290,956,686 492,636,202

For Taxation 149,493,000 93,041,000

For Gratuity 4,556,512 4,208,156

12. SALES

(c) Transfer to Investments - 1,616,571

676,048,239 577,273,271

396,808 5,220,259

119,214,220 110,297,335

162,922,320 161,412,195

(B) PROVISIONS

475,744,740 589,885,358

Real Estate:

1,053,761,283 827,046,986

2008 - 2009Rs.

As at 31/03/2009

2009 - 2010Rs.

2009 - 2010SCHEDULES TO THE ACCOUNTS

Rs. Rs.

13. OTHER INCOME

Interest (includes TDS Rs.937,829/-; PY. Rs.2,268,511/-) 12,078,843 10,879,586

Income from Investment:

Rent 1,446,450 1,146,450

Dividend 148,565 113,397

Profit on sale of investment 3,386,531 66,511,268

Income from Revenue Sharing arrangements 1,832,763 2,847,579

Rent and hire charges 811,279 677,238

Miscellaneous Income 2,171,187 2,386,939

Profit on sale of Fixed Assets 4,244,228 -

Excess Provision of Gratuity written back - 1,761,204

Share of Profit from Partnership 25,755,822 18,939,428

Provision for Dimunition in value of investment written back 3,491,521 -

Liabilities Written Back 1,004,251 1,857,526

14. PURCHASES

Land 18,834,654 76,949,600

Flats/ Bunglows/ Shops 2,100,000 5,591,837

15. PROJECT EXPENSES

Consumption of construction materials (Indigenous) 331,773,043 410,349,607

Wages 82,655,983 62,561,705

Labour Charges 58,834,437 53,191,140

Power & Fuel 6,787,956 5,554,148

Other project related expenses 96,501,889 35,894,631

576,553,308 567,551,231

Less: Ongoing Project Adjustment 332,018,969 376,759,017

16. DECREASE / (INCREASE) IN STOCK

Opening Stock:

Leasehold land* 173,413,931 107,399,975

Freehold land* 39,210,637 42,992,147

Unsold completed construction* 93,623,839 144,010,431

Work-in-progress 233,443,282 68,360,013

Less: Closing Stock:

Leasehold Land 175,182,138 180,163,307

Freehold Land 52,254,522 37,395,080

Unsold completed construction 116,696,576 86,304,721

Work-in-progress 286,644,761 233,443,282

630,777,997 537,306,390

* Net of ongoing project adjustment amounting to

Rs.-2,385,299/-; P.Y. Rs.16,893,927/-

17. EXPENSES ON EMPLOYEES

Salary, Wages, bonus and allowances 47,678,198 41,359,564 (includes Gratuity Provision Rs.348,356/-;PY

Rs.1,005,640/-)

Directors’ Remuneration 7,200,000 6,750,000

Contribution to Provident & Other Funds 1,406,254 1,426,629

Staff & Labour welfare expenses 5,312,615 7,871,148

18. COST OF BORROWINGS

Interest- On Construction Loans 9,269,683- Others 1,219,850 1,247,196

10,489,533 1,247,196

56,371,440 107,120,615

20,934,654 82,541,437

244,534,339 190,792,214

539,691,689 362,762,566

(91,086,308) (174,543,824)

61,597,067 57,407,341

2008 - 2009 2009 - 2010SCHEDULES TO THE ACCOUNTS

Rs. Rs.

19. OTHER EXPENSES

Rent 6,762,302 4,667,548

Rates and Taxes 270,164 391,050

Insurance 393,889 536,483

Travelling and Conveyance 9,465,673 6,969,758

Legal and Professional expenses 5,388,312 2,139,852

Advertisement and Business Promotion 47,536,870 41,675,525

Commission - 561,147

Telephone, Telex & Fax 3,158,069 3,074,384

Printing & Stationery 2,061,758 1,702,850

Repairs and Maintenance :

To Machineries 971,282 40,468

To Building 3,749,634 5,068,392

To Others 2,571,540 193,992

Directors' Fees 17,000 9,000

Auditors' Remuneration :

For Statutory Audit 716,950 551,500

For Internal Audit 502,837 198,622

For Tax Audit 165,450 137,875

For Other Services 162,144 214,086

Miscellaneous expenses 8,550,516 8,216,751

Irrecoverable Balances Written off 248,236 257,067

Fixed Assets Written Off - 425,895

Loss on Sale of Fixed assets - 389,473

Items relating to previous year (Net) 681,354 620,915

Provision for Diminution in value of current Investment 65,635 3,491,521

20. DIRECT TAXES

Income Tax 68,500,000 31,000,000

Deferred Tax 7,669,000 (910,000)

Fringe Benefit Tax - 1,270,000

Wealth Tax 202,000 57,000

Income tax Adjustments 1,748 268,684

93,439,615 81,534,154

76,372,748 31,685,684

2008 - 2009

21. NOTES ON ACCOUNTS

Significant Accounting Policies

The company adopts accrual basis of accounting in the

preparation of accounts.

(a) Fixed assets are valued at cost and depreciation is

provided on straight line basis in accordance with the

provisions of Schedule XIV to the Companies Act,1956.

(b) Capital work in progress is valued at cost.

Inventories are valued as follows:

Construction Material: At Lower of cost and net

realizable value. However, materials and other items are

not written down below cost if the constructed units in

which they are used are expected to be sold at or above

cost. Cost is determined on FIFO basis.

SYSTEM OF ACCOUNTING :

FIXED ASSETS AND DEPRECIATION :

INVENTORIES :

Leasehold and Freehold Land , Unsold Completed Construction and Work in Progress: At Lower of cost

and net realizable value. Cost includes direct

materials, labour and construction overheads.

(a) Revenue in respect of projects undertaken before

March 31, 2006, is accounted for on the basis of date of

delivery of physical possession to the respective

customers.

(b) Revenue in respect of other projects is recognised on

the "Percentage of Completion Method" (POC) of

accounting and represents value of units contracted to be

sold to the extent of actual work done against total

estimated cost of execution upon the project reaches a

level as considered appropriate by the management.

The corresponding cumulative amount at the close of the

year appears under ‘Current Liabilities’ as deduction

from ‘Advance from customers’.

The estimates of saleable areas, estimated costs and cost

REAL ESTATE PROJECTS:

Rs. Rs.

13. OTHER INCOME

Rent 1,446,450 1,146,450

Dividend 148,565 113,397

14. PURCHASES

Land 18,834,654 76,949,600

Wages 82,655,983 62,561,705

Labour Charges 58,834,437 53,191,140

Power & Fuel 6,787,956 5,554,148

576,553,308 567,551,231

Opening Stock:

Leasehold land* 173,413,931 107,399,975

Freehold land* 39,210,637 42,992,147

Work-in-progress 233,443,282 68,360,013

Leasehold Land 175,182,138 180,163,307

Freehold Land 52,254,522 37,395,080

Work-in-progress 286,644,761 233,443,282

630,777,997 537,306,390

Rs.-2,385,299/-; P.Y. Rs.16,893,927/-

Rs.1,005,640/-)

10,489,533 1,247,196

56,371,440 107,120,615

20,934,654 82,541,437

244,534,339 190,792,214

539,691,689 362,762,566

(91,086,308) (174,543,824)

61,597,067 57,407,341

Rs. Rs.

19. OTHER EXPENSES

Rent 6,762,302 4,667,548

Insurance 393,889 536,483

To Building 3,749,634 5,068,392

To Others 2,571,540 193,992

For Tax Audit 165,450 137,875

20. DIRECT TAXES

Income Tax 68,500,000 31,000,000

Deferred Tax 7,669,000 (910,000)

Wealth Tax 202,000 57,000

93,439,615 81,534,154

76,372,748 31,685,684

2008 - 2009

INVENTORIES :

customers.

Rs. Rs.

13. OTHER INCOME

Rent 1,446,450 1,146,450

Dividend 148,565 113,397

14. PURCHASES

Land 18,834,654 76,949,600

Wages 82,655,983 62,561,705

Labour Charges 58,834,437 53,191,140

Power & Fuel 6,787,956 5,554,148

576,553,308 567,551,231

Opening Stock:

Leasehold land* 173,413,931 107,399,975

Freehold land* 39,210,637 42,992,147

Work-in-progress 233,443,282 68,360,013

Leasehold Land 175,182,138 180,163,307

Freehold Land 52,254,522 37,395,080

Work-in-progress 286,644,761 233,443,282

630,777,997 537,306,390

Rs.-2,385,299/-; P.Y. Rs.16,893,927/-

Rs.1,005,640/-)

10,489,533 1,247,196

56,371,440 107,120,615

20,934,654 82,541,437

244,534,339 190,792,214

539,691,689 362,762,566

(91,086,308) (174,543,824)

61,597,067 57,407,341

Rs. Rs.

19. OTHER EXPENSES

Rent 6,762,302 4,667,548

Insurance 393,889 536,483

To Building 3,749,634 5,068,392

To Others 2,571,540 193,992

For Tax Audit 165,450 137,875

20. DIRECT TAXES

Income Tax 68,500,000 31,000,000

Deferred Tax 7,669,000 (910,000)

Wealth Tax 202,000 57,000

93,439,615 81,534,154

76,372,748 31,685,684

2008 - 2009

INVENTORIES :

customers.

of completion are reviewed periodically by the

management and effects of any changes in estimates is

recognised in the period such changes are determined.

(c) Interest on delayed payments and other charges are

accounted for on realisation.

Other income is accounted on accrual basis except

where the receipt of income is uncertain.

(a) Current Tax is determined as the amount of tax

payable in respect of taxable income for the year.

(b) Deferred Tax is recognised, subject to consideration

of prudence, in respect of deferred tax Assets/Liabilities

arising on timing differences, being the difference

between taxable income and accounting income that

originate in one period and are capable of reversal in

one or more subsequent period. Deferred tax in respect

of differential income due to accounting of sales on

percentage completion basis, being not determinate, is

not recognised.

(a) Long term investments are carried at acquisition cost

and investments intended to be held for less than one

year are classified as current investments and are carried

at lower of cost and market value. Long Term Investments

which have attained the stage of permanent diminution

in their value are revalued at their current value.

(b) Value of Intangible capital rights created in favour of

the company in the process of Real Estate activities,

being not determinate, are not shown in the books of

accounts.

Income and Expenditure in foreign currency is converted

into rupee at the rate of exchange prevailing on the date

of the transactions.

(a) Short term employee benefits are charged off at the

undiscounted amount in the year in which the related

service is rendered.

(b) Post employment and other long term employee

benefits are charged off in the year in which the

employee has rendered services. The amount charged

off is recognised at the present value of the amounts

payable determined using actuarial valuation

techniques. Actuarial gain and losses in respect of post

employment and other long term benefits are charged to

Profit and Loss Account.

The preparation of financial statements in confirmity with

generally accepted accounting principles requires

estimates/assumption to be made that affect the

reported amount of assets and liabilities on the date of

financial statements and the reported amount of

revenues and expenses during the reporting period.

Difference between actual results and estimates are

OTHER INCOME:

TAXES ON INCOME :

INVESTMENTS :

FOREIGN CURRENCY TRANSACTIONS :

EMPLOYEE BENEFITS:

USE OF ESTIMATES:

Sl. No. (Rs.) in Lakhs (Rs.) in Lakhs

2. ESIC 4.28 (4.28)

3. Additional Lease Rent Nil (34.73)

4. Provident Fund Nil (185.26)

5. Cess - Sonari land 19.43 (9.72)

Income tax and penalty 6.90 (6.90)

recognised in the period in which the results are known/

materialised.

Impairment Loss in the value of assets, as specified in

Accounting Standard - 28 is recognised whenever

carrying value of such assets exceeds the market value or

value in use, whichever is higher.

Contingent Liability, not provided for, in respect of :

(a) Contested Demand of

IMPAIRMENT OF ASSETS :

(b) Show cause notice received for service tax Rs.Nil

lakhs (Rs. 267.93 lakhs).

(c) Contested claim of the Government of Rajasthan

for refund of State Capital Subsidy including interest

Rs. 50.25 lakhs (Rs. 48.00 lakhs).

(d) Corporate Guarantee in favour of Housing Development Finance Corporation Ltd. against borrowing of Rs.1.61 Cr (Rs. Nil) by M/s. Ashiana Greenwood Developers, a firm in which the company is a partner.

Estimated amount of contract remaining to be executed on capital account and not provided for amounts (net of advance) to Rs. 8.74 lakhs (Rs. 5.20 lakhs).

Paid up Share Capital of the Company includes 19,93,100 Equity Shares, allotted pursuant to Schemes of Amalgamation without payment being received in cash and 1,33,82,750 Equity Shares, alloted as fully paid up Bonus Shares, by capitasation of General Reserves.

(a) In view of non confirmation/response from the suppliers regarding their status as SSI units, the amount due to Small Scale Industrial undertaking can not be ascertained.

(b) Due to non receipt of confirmation/response from the suppliers for compliance under the Micro, Small and Medium Enterprises Development Act, 2006, the company is unable to provide the information required under the said Act.

(a) Loans and advances includes Rs.1,513,642/- (P.Y. Rs.1,658,489/-) due from Ashiana Retirement Villages Limited, a company under t h e s a m e management, Maximum Amount outstanding at any time during the year is Rs.1,658,489/- (P.Y. Rs.1,658,489/-).

(b) Sundry Debtors includes Nil (P.Y. Rs.2,838,289/-) due from Ashiana Retirement Villages Limited, a company under the same management, Maximum Amount outstanding at any time during the year is Rs. 2,868,461 (P.Y. Rs.7,286,680/-).

Remuneration to Managing, Joint Managing and

Whole Time Directors:

Sl. No. (Rs.)(Rs.)

2. Perquisites 902,336 (45,000)

Salary 7,200,000 (6,750,000)

+ Capital (Rs.)Share

Miras Properties Pvt. Ltd. 25% 7,743

Narayan Ladha 4% 1,240

Suresh Kewlani 6% 1,858

Ashiana Housing Ltd. 65% 14,132,617

Name of Partners

The particulars of partnership businesses are given

below :-

(a) Ashiana Amar Infrastructure

(b) Ashiana Amar Developers

of Partners

Current

Account

30% of pre tax yearly profit

upto cumulative aggregate of Rs.1250 lakhs

Balance

+ Capital

Miras Properties

Pvt. Ltd. 15/35 15% (18,521,552) -

Narayan Ladha 4/35 4% 2,627,587 -

Suresh Kewlani 6/35 6% 3,691,379 -

Sunil Talwar 5/35 5% 3,909,481 -

Harish Talwar 5/35 5% 3,909,481 -

Ashiana 35%

Housing - 65% 103,902,029 22,006,836

of Partners

upto cumulative aggregate of Rs. 6791 lacs

Balance

+ Capital

N.K. Gupta 15.00% 7.50% 14,376,731

Vinod Goyal 15.50% 7.75% 14,855,956

Ram Babu Agarwal 7.50% 3.75% 7,188,366

Ajay Gupta 15.00% 7.50% 14,376,731

Ritesh Agarwal 33.00% 16.50% 31,628,809

Manglam Build-

Developers P Ltd. 6.00% 3.00% 5,750,692

Rajendra Agarwal 8.00% 4.00% 7,667,590

Ashiana Housing Ltd. - 50.00% 62,830,559

(c) Megha Colonizer - Rangoli Division

of Partners

30% of pre tax yearly profit upto

cumulative aggregate

of Rs. 544 lakhs

Balance + Capital

Shubhlabh

Buildhome &

Finance India. Ltd. 100% 50% 44,164,540

Ashiana Housing Ltd. - 50% 108,476,808

(d) Ashiana Greenwood Developers

Expenditure in Foreign Currency:9.

(Rs.)(Rs.)

Travelling 1,386,446/- (1,431,018/-)

Related parties and transactions with them as

specified in the Accounting Standard 18 on “Related

Parties Disclosures” issued by ICAI has been identified

and given below on the basis of information available

with the company and the same has been relied upon by

the auditors.

2009 - 2010

(Rs.) in Lakhs (Rs.) in Lakhs

(i) Vatika Marketing Ltd.

Maintenance charges paid 6.07 6.92

Rent Received 6.00 6.00

Hire charges Received 1.20 1.20

Year end payable (net) 10.15 0.39

Deposit Received 100.00 100.00

(ii) Ashiana Retirement Villages Ltd.

Interest received 12.05 0.40

Lease Rent Received 3.48 0.48

Revenue sharing 18.33 26.72

Maintenance Charges & other expenses Paid 30.53 25.42

Sale of assets Nil 58.80

Loan given / (repaid) (net) (100.00) 100.00

Year end Payable/ (Receivable) 1.52 (44.16)

(b) Associates and joint ventures

Year end Payable Nil 12.50

Hire charges received 2.26 1.14

Year end Investment As per note 8 As per note 8above above

Hire charges received 0.01 Nil

Year end Investment As per note 8 As per note 8

above above

(I) Bahari Estates (P) Ltd.

(ii) Ashiana Greenwood Developers

(iii) Megha Colonizers

(iv) Ashiana Amar Developers

(v) Ashiana Amar Infrastructure

Related Parties & Relationship

Transactions

(a) Enterprises that directly, or indirectly through one or more intermediaries, Control or are controlled by or are under common control with the company (including holding companies, subsidiaries and fellow Subsidiaries) :

2008 - 2009

+ On the basis of audited Balance Sheet as at 31.03.2010

(c) Interest on delayed payments and other charges are

not recognised.

accounts.

estimates/assumption to be made that affect the

OTHER INCOME:

TAXES ON INCOME :

INVESTMENTS :

EMPLOYEE BENEFITS:

USE OF ESTIMATES:

Sl. No. (Rs.) in Lakhs (Rs.) in Lakhs

2. ESIC 4.28 (4.28)

3. Additional Lease Rent Nil (34.73)

4. Provident Fund Nil (185.26)

5. Cess - Sonari land 19.43 (9.72)

Income tax and penalty 6.90 (6.90)

materialised.

Accounting Standard - 28 is recognised whenever

(a) Contested Demand of

(b) Show cause notice received for service tax Rs.Nil

lakhs (Rs. 267.93 lakhs).

(c) Contested claim of the Government of Rajasthan

for refund of State Capital Subsidy including interest

Rs. 50.25 lakhs (Rs. 48.00 lakhs).

(d) Corporate Guarantee in favour of Housing Development Finance Corporation Ltd. against borrowing of Rs.1.61 Cr (Rs. Nil) by M/s. Ashiana Greenwood Developers, a firm in which the company is a partner.

Estimated amount of contract remaining to be executed on capital account and not provided for amounts (net of advance) to Rs. 8.74 lakhs (Rs. 5.20 lakhs).

Paid up Share Capital of the Company includes 19,93,100 Equity Shares, allotted pursuant to Schemes of Amalgamation without payment being received in cash and 1,33,82,750 Equity Shares, alloted as fully paid up Bonus Shares, by capitasation of General Reserves.

(a) In view of non confirmation/response from the suppliers regarding their status as SSI units, the amount due to Small Scale Industrial undertaking can not be ascertained.

(b) Due to non receipt of confirmation/response from the suppliers for compliance under the Micro, Small and Medium Enterprises Development Act, 2006, the company is unable to provide the information required under the said Act.

(a) Loans and advances includes Rs.1,513,642/- (P.Y. Rs.1,658,489/-) due from Ashiana Retirement Villages Limited, a company under t h e s a m e management, Maximum Amount outstanding at any time during the year is Rs.1,658,489/- (P.Y. Rs.1,658,489/-).

(b) Sundry Debtors includes Nil (P.Y. Rs.2,838,289/-) due from Ashiana Retirement Villages Limited, a company under the same management, Maximum Amount outstanding at any time during the year is Rs. 2,868,461 (P.Y. Rs.7,286,680/-).

Remuneration to Managing, Joint Managing and

Whole Time Directors:

Sl. No. (Rs.)(Rs.)

2. Perquisites 902,336 (45,000)

Salary 7,200,000 (6,750,000)

+ Capital (Rs.)Share

Miras Properties Pvt. Ltd. 25% 7,743

Narayan Ladha 4% 1,240

Suresh Kewlani 6% 1,858

Ashiana Housing Ltd. 65% 14,132,617

Name of Partners

The particulars of partnership businesses are given

below :-

(a) Ashiana Amar Infrastructure

(b) Ashiana Amar Developers

of Partners

Current

Account

upto cumulative aggregate of Rs.1250 lakhs

Balance

+ Capital

Miras Properties

Pvt. Ltd. 15/35 15% (18,521,552) -

Narayan Ladha 4/35 4% 2,627,587 -

Suresh Kewlani 6/35 6% 3,691,379 -

Sunil Talwar 5/35 5% 3,909,481 -

Harish Talwar 5/35 5% 3,909,481 -

Ashiana 35%

Housing - 65% 103,902,029 22,006,836

of Partners

upto cumulative aggregate of Rs. 6791 lacs

Balance

+ Capital

N.K. Gupta 15.00% 7.50% 14,376,731

Vinod Goyal 15.50% 7.75% 14,855,956

Ram Babu Agarwal 7.50% 3.75% 7,188,366

Ajay Gupta 15.00% 7.50% 14,376,731

Ritesh Agarwal 33.00% 16.50% 31,628,809

Manglam Build-

Developers P Ltd. 6.00% 3.00% 5,750,692

Rajendra Agarwal 8.00% 4.00% 7,667,590

Ashiana Housing Ltd. - 50.00% 62,830,559

(c) Megha Colonizer - Rangoli Division

of Partners

30% of pre tax yearly profit upto

cumulative aggregate

of Rs. 544 lakhs

Balance + Capital

Shubhlabh

Buildhome &

Finance India. Ltd. 100% 50% 44,164,540

Ashiana Housing Ltd. - 50% 108,476,808

(d) Ashiana Greenwood Developers

Expenditure in Foreign Currency:9.

(Rs.)(Rs.)

Travelling 1,386,446/- (1,431,018/-)

Related parties and transactions with them as

the auditors.

2009 - 2010

(i) Vatika Marketing Ltd.

Maintenance charges paid 6.07 6.92

Rent Received 6.00 6.00

Year end payable (net) 10.15 0.39

Deposit Received 100.00 100.00

(ii) Ashiana Retirement Villages Ltd.

Lease Rent Received 3.48 0.48

Maintenance Charges & other expenses Paid 30.53 25.42

Sale of assets Nil 58.80

Loan given / (repaid) (net) (100.00) 100.00

Year end Payable/ (Receivable) 1.52 (44.16)

Year end Payable Nil 12.50

Hire charges received 2.26 1.14

Year end Investment As per note 8 As per note 8above above

Hire charges received 0.01 Nil

above above

(I) Bahari Estates (P) Ltd.

(ii) Ashiana Greenwood Developers

(iii) Megha Colonizers

(iv) Ashiana Amar Developers

(v) Ashiana Amar Infrastructure

Transactions

(a) Enterprises that directly, or indirectly through one or more intermediaries, Control or are controlled by or are under common control with the company (including holding companies, subsidiaries and fellow Subsidiaries) :

2008 - 2009

+ On the basis of audited Balance Sheet as at 31.03.2010

(c) Individuals owning directly or indirectly, an interest in the

voting power of the company that gives them control or

significant influence over the company, and relatives of any

such individual.

Rs. in Lakhs Rs. in Lakhs

(d) Key management

personnel and their

relatives

Shri Om Prakash Gupta,

MD (Remuneration) 18.00 18.00

Shri Vishal Gupta,

Jt. MD (Remuneration) 18.00 18.00

Shri Ankur Gupta, 18.00 18.00

Whole Time Director

Shri Varun Gupta, 18.00 13.50

Director

(e) Enterprises over

which any person

described in (c) or (d)

is able to exercise

significant influence :

OPG Realtors Limited

Sale of Flat 23.00 300.00

Karma Hospitality - -

Limited

R G Woods Limited

Sale of Flat 23.00 Nil

B.G. Estate Limited

Advance from Customer 71.33 Nil

Hemi Estate Private Limited - -

(f) Amount Written off in - -

respect of above parties

2009 - 2010 2009 - 2010

The earning per share has been calculated as specified

in Accounting Standard 20 on “Earnings Per Share”

issued by ICAI and related disclosures are as below :

(Rs.) in Lakhs(Rs.) in Lakhs

(a) Amount used as numerator in

calculating basic and diluted EPS:

Profit/(Loss) after tax 3540.51 2597.79

(b) Weighted average number

of equity shares used as the

denominator in calculating

EPS (Nos. in lakhs).

Opening Balance 187.36 187.36

187.36 187.36

2009 - 2010 2008 - 2009

The disclosure required under Accounting Standard

-15, Employees Benefit, notified in the Companies

(Accounting Standard) Rules, 2006 are given below:

Defined Contribution Plan:

Contribution to Defined Contribution

Plan, recognised are charged off

for the year are as under:

Employer’s Contribution to

Provident & Pension Fund 14.06 14.27

(Rs.) in Lakhs(Rs.) in Lakhs2009 - 2010 2008 - 2009

The present value of obligation is determined based on

actuarial valuation using the Projected Unit Credit

Method, which recognises each period of service as

giving rise to additional unit of employee benefit

entitlement and measures each unit separately to build

up the final obligation.

Defined Benefit Plan:

(a) Reconciliation of opening and closing

balances of Defined Benefit obligation

Defined Benefit obligation at beginning

of the year 42.08 49.63

Current Service Cost 6.85 7.02

Interest Cost 3.26 3.97

Actuarial (gain)/loss (4.42) (17.61)

Benefits (paid) (2.21) (0.93)

Defined Benefit obligation at year end 45.56 42.08

(b) Reconciliation of fair value of assets

and obligations

Present value of obligation as at end of

the year 45.56 42.08

Amount recognised in Balance Sheet 45.56 42.08

(c) Expenses recognized during the year

Actuarial (gain) / loss (4.42) (17.61)

Net Cost 5.69 (6.62)

(d) Actuarial assumptions

Mortality Table (L.I.C.) 1994-96 1994-96

Discount rate (per annum) compounded 8.00% 7.75%

Rate of escalation in salary (per annum) 5.00% 5.00%

Gratuity Unfunded

2009-2010 2008-2009

The estimates of future salary increase considered in the

actuarial valuation takes into account factors like

inflation, seniority, promotion and other relevant factors.

The above information is certified by the Actuary.

These accounts have been prepared as per the

revised Accounting Standard (AS) 9 on “Revenue

Recognition” and the Guidance note on “Recognition of

Revenue by Real Estate Developers”.

Since, in terms of provisions of the Income Tax Act, 1961

the income accrues upon delivery of physical

possession/ deemed possession of constructed unit and

deduction u/s 80IB(10) is claimed by the company after

completion of construction, ‘Net Profit’ for computing

Total Income under the said Act is as follows: -

Net Profit as per Profit & Loss Account 430,423,301

Sales Real Estate- ongoing projects 694,275,913

Ongoing project expenses adjusted 329,633,671 364,642,242

As per Income Tax Act:

Sales Real Estate – ongoing projects completed(upon delivery of physical possession) 671,432,585Less: Cost of Sales 384,913,197 286,519,388Net Profit for Income Tax Purpose

65,781,059

352,300,447

Rs.Rs.

Amount (Rs.)Flats/

Bungalows/

Shops (Nos.)

Opening Stock 1 191,730

(1) (191,730)

Purchases 1 2,100,000

(2) (4,834,000)

Sales 1 2,100,000

(2) (4,930,000)

Closing Stock 1 191,730

Stock, Purchase and Sales:14. 15.

On the basis of physical verification of assets, as

specified in Accounting Standard - 28 and cash

generation capacity of those assets, in the management

perception there is no impairment of such assets as

appearing in the balance sheet as on 31.03.2010.

Unabsorbed MAT credit to be allowed in future

years amounts to Rs.134,721,483/-

(a) Previous year figures above are indicated in

brackets.

(b ) P revious year f igu re have been

regrouped/rearranged, wherever found necessary.

1. Registration Details Registration No. : 40864 State Code : 21

Balance Sheet Date : 31/03/2010

2. Capital raised during the year Public Issue : Nil Right Issue : Nil

(Amount in Rs. Thousand) Bonus Issue : Nil Private Placement : Nil

3. Position of Mobilisation and Total Liabilities : 1,315,121 Total Assets : 1,315,121

Deployment of funds

(Amount in Rs. Thousand)

Sources of Funds Paid-up Capital : 187, 359 Reserves & Surplus : 1,034,791

Secured Loans : 77,784 Unsecured Loans : Nil

Deferred Tax Liablility : 15,187l

Application of Funds Fixed Assets : 180,688 Investments : 651,596

Net Current Assets : 482,837 Misc. Expenditure : Nil

Accumulated Losses : Nil

Performance of Company Turnover (Gross Revenue) : 1,110,133 Total Expenditure : 679,709

+/- Profit/Loss Before Tax : +430,424 +/- Profit/Loss After Tax : +354,051

Earning per share : 18.90 Dividend Rate % : 15%

4. Generic Name of Three Products/

Services of Company (as per

monetary terms) Item Code No. : N.A.

(ITC Code)

Product Description : Real Estate

22. BALANCE SHEET ABSTRACT AND COMPANY'S GENERAL BUSINESS PROFILE

Date: May 29, 2010 Date: May 29, 2010

voting power of the company that gives them control or

significant influence over the company, and relatives of any

such individual.

(d) Key management

personnel and their

relatives

MD (Remuneration) 18.00 18.00

Shri Vishal Gupta,

Jt. MD (Remuneration) 18.00 18.00

Shri Ankur Gupta, 18.00 18.00

Whole Time Director

Shri Varun Gupta, 18.00 13.50

Director

(e) Enterprises over

which any person

described in (c) or (d)

is able to exercise

significant influence :

OPG Realtors Limited

Sale of Flat 23.00 300.00

Karma Hospitality - -

Limited

R G Woods Limited

Sale of Flat 23.00 Nil

B.G. Estate Limited

Advance from Customer 71.33 Nil

Hemi Estate Private Limited - -

(f) Amount Written off in - -

respect of above parties

2009 - 2010 2009 - 2010

The earning per share has been calculated as specified

in Accounting Standard 20 on “Earnings Per Share”

issued by ICAI and related disclosures are as below :

(Rs.) in Lakhs(Rs.) in Lakhs

(a) Amount used as numerator in

Profit/(Loss) after tax 3540.51 2597.79

(b) Weighted average number

of equity shares used as the

EPS (Nos. in lakhs).

187.36 187.36

2009 - 2010 2008 - 2009

The disclosure required under Accounting Standard

-15, Employees Benefit, notified in the Companies

Defined Contribution Plan:

Contribution to Defined Contribution

Plan, recognised are charged off

(Rs.) in Lakhs(Rs.) in Lakhs2009 - 2010 2008 - 2009

Defined Benefit Plan:

of the year 42.08 49.63

Actuarial (gain)/loss (4.42) (17.61)

Benefits (paid) (2.21) (0.93)

and obligations

Present value of obligation as at end of

the year 45.56 42.08

Actuarial (gain) / loss (4.42) (17.61)

Net Cost 5.69 (6.62)

Gratuity Unfunded

2009-2010 2008-2009

actuarial valuation takes into account factors like

inflation, seniority, promotion and other relevant factors.

The above information is certified by the Actuary.

deduction u/s 80IB(10) is claimed by the company after

Sales Real Estate- ongoing projects 694,275,913

Ongoing project expenses adjusted 329,633,671 364,642,242

As per Income Tax Act:

Sales Real Estate – ongoing projects completed(upon delivery of physical possession) 671,432,585Less: Cost of Sales 384,913,197 286,519,388Net Profit for Income Tax Purpose

65,781,059

352,300,447

Rs.Rs.

Amount (Rs.)Flats/

Bungalows/

Shops (Nos.)

Opening Stock 1 191,730

(1) (191,730)

Purchases 1 2,100,000

(2) (4,834,000)

Sales 1 2,100,000

(2) (4,930,000)

Closing Stock 1 191,730

Stock, Purchase and Sales:14. 15.

Unabsorbed MAT credit to be allowed in future

years amounts to Rs.134,721,483/-

brackets.

(b ) P revious year f igu re have been

Deployment of funds

Sources of Funds Paid-up Capital : 187, 359 Reserves & Surplus : 1,034,791

Secured Loans : 77,784 Unsecured Loans : Nil

Deferred Tax Liablility : 15,187l

Application of Funds Fixed Assets : 180,688 Investments : 651,596

+/- Profit/Loss Before Tax : +430,424 +/- Profit/Loss After Tax : +354,051

(ITC Code)

Date: May 29, 2010 Date: May 29, 2010

CASH FLOW STATEMENT FOR THE

2009 - 2010 2008 - 2009

Rs. Rs.

CASH FLOW FROM OPERATING ACTIVITIES :

Net Profit before tax and extraordinary items 430,423,301 291,464,299

Adjusted for :

Depreciation 10,166,852 10,071,840

Interest Income (12,078,843) (10,879,586)

Income from Long Terms Investment (30,737,368) (86,710,543)

Provision for Diminution in value of Investments/(written back) (3,425,886) 3,491,521

Interest paid 10,489,533 1,247,196

Fixed assets written off - 425,895 (4,244,228) 389,473

OPERATING PROFIT BEFORE WORKING CAPITAL CHANGES

Adjusted for : Trade and other receivables 56,572,289 (637,875,645) Inventories (98,774,968) (161,958,087) Trade Payables and advances from customers (201,286,503) 584,446,370

CASH GENERATED FROM OPERATIONS 157,104,179 (5,887,267)

Direct Taxes paid / adjusted (65,510,711) (20,763,810)

Cash flow before extra ordinary items

Extra Ordinary items

Net cash from Operating activities (A)

CASH FLOW FROM INVESTING ACTIVITIES :

Purchase of Fixed Assets (28,360,542) (73,726,486)Sale of Fixed Assets 9,761,209 31,352,493Net Change in Investments (137,877,625) 132,690,904 Interest Income 12,078,843 10,879,586 Other Income from Long Term Investments 1,595,015 1,259,847Net Cash from investing activities (B)

CASH FLOW FROM FINANCING ACTIVITIES :

Proceeds from long term and other borrowings 70,660,707 (123,009)

Interest paid (10,489,533) (1,247,196)

Dividend paid (44,657) (26,678,544)

Net Cash used in Financing activities (C)

NET INCREASE IN CASH AND CASH EQUIVALENTS (A + B + C)

CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR

CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR

01. Proceeds from long term and other borrowings are shown net of repayment.

02. Cash and Cash equivalents represent cash and bank balances only.

(Profit) / Loss on sale of Fixed Assets

400,593,361 209,500,095

91,593,468 (26,651,077)

(142,803,100) 102,456,344

60,126,517 (28,048,749)

8,916,885 47,756,518

110,297,335 62,540,817

119,214,220 110,297,335

TATEMENT PURSUANT TO SECTION

212 OF THE COMPANIES ACT 1956 RELATING TO COMPANY'S INTEREST IN THE SUBSIDIARY COMPANIES

Ashiana Retirement

Villages Ltd.

Vatika

Marketing Ltd.

1. Financial Year of the Subsidiary Company ended on

2. (a) No. of shares held by Ashiana Housing Ltd. 9240050 Equity 50000 Equity

(Holding Company) in the subsidiary at the Shares of Shares of

end of the financial year of the subsidiary Rs. 10/- each Rs. 10/- each

(b) Extent of interest of Holding Company at the end 100% 100%

of the financial year of the subsidiary :

3. The net aggregate amount of subsidiary’s profit/(Loss)

not dealt with in the Company’s accounts.

(a) for the financial year of the subsidiary (in Rs.) 11,083,592 3,062,059

(b) for the all previous financial years of the subsidiary

since it became the Holding Company’s subsidiary 6,046,677 1,912,750

dealt with in the Company’s accounts.

(a) for the financial year of the subsidiary (in Rs.) Nil Nil

(b) for the all previous financial years of the subsidiary Nil Nil

since it became the Holding Company’s subsidiary

5. Changes in the Holding Company’s interest, in the N. A. N. A.

Subsidiary between the end of the Financial Year of

the Subsidiary and the end of the Holding Company’s

Financial Year.

6. Material Changes between the end of the Financial Year

of the Subsidiary and the end of the Holding Company’s

financial year in respect of

(a) the subsidiary’s fixed assets N.A. N.A.

(b) its investments N.A. N.A.

the money lent by it, and(c) N.A. N.A.

(d) the money borrowed by it for any purpose other

than that of meeting current liabilities. N.A. N.A.

31.03.2010 31.03.2010

Sl. No

For and on behalf of the Board

Place: Gurgaon Vishal Gupta Varun Gupta

Date: May 29, 2010 Managing Director Director

In terms of our report of even date attached herewith

Date: May 29, 2010 Date: May 29, 2010

2009 - 2010 2008 - 2009

Rs. Rs.

Adjusted for :

Depreciation 10,166,852 10,071,840

Interest Income (12,078,843) (10,879,586)

Provision for Diminution in value of Investments/(written back) (3,425,886) 3,491,521

Interest paid 10,489,533 1,247,196

Fixed assets written off - 425,895 (4,244,228) 389,473

Adjusted for : Trade and other receivables 56,572,289 (637,875,645) Inventories (98,774,968) (161,958,087) Trade Payables and advances from customers (201,286,503) 584,446,370

Purchase of Fixed Assets (28,360,542) (73,726,486)Sale of Fixed Assets 9,761,209 31,352,493Net Change in Investments (137,877,625) 132,690,904 Interest Income 12,078,843 10,879,586 Other Income from Long Term Investments 1,595,015 1,259,847Net Cash from investing activities (B)

Proceeds from long term and other borrowings 70,660,707 (123,009)

Interest paid (10,489,533) (1,247,196)

Dividend paid (44,657) (26,678,544)

NET INCREASE IN CASH AND CASH EQUIVALENTS (A + B + C)

CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR

CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR

(Profit) / Loss on sale of Fixed Assets

400,593,361 209,500,095

91,593,468 (26,651,077)

(142,803,100) 102,456,344

60,126,517 (28,048,749)

8,916,885 47,756,518

110,297,335 62,540,817

119,214,220 110,297,335

TATEMENT PURSUANT TO SECTION

212 OF THE COMPANIES ACT 1956 RELATING TO COMPANY'S INTEREST IN THE SUBSIDIARY COMPANIES

Ashiana Retirement

Villages Ltd.

Vatika

Marketing Ltd.

1. Financial Year of the Subsidiary Company ended on

2. (a) No. of shares held by Ashiana Housing Ltd. 9240050 Equity 50000 Equity

(Holding Company) in the subsidiary at the Shares of Shares of

end of the financial year of the subsidiary Rs. 10/- each Rs. 10/- each

(b) Extent of interest of Holding Company at the end 100% 100%

of the financial year of the subsidiary :

not dealt with in the Company’s accounts.

(a) for the financial year of the subsidiary (in Rs.) 11,083,592 3,062,059

(b) for the all previous financial years of the subsidiary

since it became the Holding Company’s subsidiary 6,046,677 1,912,750

dealt with in the Company’s accounts.

(a) for the financial year of the subsidiary (in Rs.) Nil Nil

(b) for the all previous financial years of the subsidiary Nil Nil

since it became the Holding Company’s subsidiary

5. Changes in the Holding Company’s interest, in the N. A. N. A.

Subsidiary between the end of the Financial Year of

the Subsidiary and the end of the Holding Company’s

Financial Year.

6. Material Changes between the end of the Financial Year

of the Subsidiary and the end of the Holding Company’s

financial year in respect of

(a) the subsidiary’s fixed assets N.A. N.A.

(b) its investments N.A. N.A.

the money lent by it, and(c) N.A. N.A.

(d) the money borrowed by it for any purpose other

than that of meeting current liabilities. N.A. N.A.

31.03.2010 31.03.2010

Sl. No

Place: Gurgaon Vishal Gupta Varun Gupta

Date: May 29, 2010 Managing Director Director

Date: May 29, 2010 Date: May 29, 2010

V VATIKA MARKETING

LIMITED

IRECTORS’ REPORTDTO THE MEMBER (S)

FINANCIAL RESULTS

DIVIDEND

OPERATION

DIRECTORS

FIXED DEPOSITS

AUDITORS

The Directors of your Company have pleasure in

presenting the Fourteenth Annual Report, together with

audited statement of accounts for the year ended March

31, 2010.

Your directors are glad to report that during the year

under review the Project Maintenance Charges & Other

Income has been recorded at Rs. 3,60,46,289/- as

compared to Rs. 2,63,07,053 /- during the previous

financial year representing an increase of 37%. The

Company has earned a profit, after depreciation and

tax, of Rs. 30,62,059/- during the financial year

2009-10 as compared to Rs. 18,33,147/- in the

previous financial year representing an increase of 67%.

Your directors has recommend a dividend of Rs. 60 per

equity share aggregating Rs. 30 Lakhs for the financial

year 2009-10.

The main operation of your Company relates to

maintenance of various building complexes. The

Company has taken over the Real Estate Agency and

Facility Management business of Ashiana Retirement

Villages Ltd. with effect from 1st April, 2010.

Shri Ashok Kumar Mattoo and Shri Lalit Kumar

Chhawchharia are the director retiring by rotation at the

ensuing annual general meeting of the company and is

eligible for reappointment.

Companies (Acceptance of Deposits) Rules, 1975.

retires at the conclusion of forthcoming Annual General

Meeting and being eligible, offer them for re-

appointment. The Company has received a certificate to

the effect that their re-appointment, if made, will be

within the prescribed limit under section 224 (1B) of the

Companies Act, 1956. The Auditors report is self-

explanatory and requires no comments by the Directors.

There is no employee in respect of whom particulars

pursuant to Section 217 (2A) of the Companies Act,

1956 read with Companies (Particulars of Employees)

(Amendments) Rules, 1999 are required to be given.

Pursuant to Section 217 (2AA) of the Companies Act,

1956, the Directors confirm that:

In the preparation of the annual accounts, the

applicable accounting standards have been

followed by the Company;

Such accounting policies have been selected and

consistently applied and judgments & estimates

made that are reasonable and prudent so as to

give a true and fair view of the state of affairs of the

Company as at 31st March 2010 and of the profit

or loss of the Company for the year ended on that

Proper and sufficient care has been taken for the

accordance with the provisions of the Companies

Act, 1956, for safeguarding the assets of the

Company and for preventing and detecting fraud

and other irregularities.

Annual accounts have been prepared on a going

concern basis.

Your Directors are of opinion that particulars with respect

to Conservation of Energy, Technology Absorption as

per Section 217(1)(e) read with the Companies

PARTICULARS OF EMPLOYEES

DIRECTORS RESPONSIBILITY STATEMENT

PARTICULARS OF CONSERVATION OF ENERGY,

V VATIKA MARKETING

LIMITED

FINANCIAL RESULTS

DIVIDEND

OPERATION

DIRECTORS

FIXED DEPOSITS

AUDITORS

presenting the Fourteenth Annual Report, together with

audited statement of accounts for the year ended March

31, 2010.

Your directors are glad to report that during the year

under review the Project Maintenance Charges & Other

Income has been recorded at Rs. 3,60,46,289/- as

compared to Rs. 2,63,07,053 /- during the previous

financial year representing an increase of 37%. The

Company has earned a profit, after depreciation and

tax, of Rs. 30,62,059/- during the financial year

2009-10 as compared to Rs. 18,33,147/- in the

previous financial year representing an increase of 67%.

equity share aggregating Rs. 30 Lakhs for the financial

year 2009-10.

The main operation of your Company relates to

maintenance of various building complexes. The

Company has taken over the Real Estate Agency and

Facility Management business of Ashiana Retirement

Villages Ltd. with effect from 1st April, 2010.

Shri Ashok Kumar Mattoo and Shri Lalit Kumar

Chhawchharia are the director retiring by rotation at the

ensuing annual general meeting of the company and is

eligible for reappointment.

Companies (Acceptance of Deposits) Rules, 1975.

retires at the conclusion of forthcoming Annual General

Meeting and being eligible, offer them for re-

appointment. The Company has received a certificate to

the effect that their re-appointment, if made, will be

within the prescribed limit under section 224 (1B) of the

Companies Act, 1956. The Auditors report is self-

In the preparation of the annual accounts, the

Such accounting policies have been selected and

made that are reasonable and prudent so as to

give a true and fair view of the state of affairs of the

Company as at 31st March 2010 and of the profit

Proper and sufficient care has been taken for the

and other irregularities.

Annual accounts have been prepared on a going

concern basis.

(Disclosure of Particulars in the Report of Board of

Directors) Rules 1988 are not relevant in view of the

nature of business activities of the Company and hence,

not required to be given. There has been no foreign

exchange earnings and outgo during the year under

review.

Your directors take this opportunity to express grateful

thanks to the Central and State Governments and

Company's bankers for their support and guidance to

the Company from time to time. The Directors wish to

ACKNOWLEDGMENT

place on record their appreciation of efficient and loyal

services rendered by the officers and staff members of

the Company. Your Company's personnel relations

continued to be excellent.

For and on behalf of Board

Director Director

Place : New Delhi

Date : May 29, 2010

A UDITOR’S REPORT

The Members of Vatika Marketing Limited

We have audited the attached balance sheet of Vatika

Marketing Limited as at March 31, 2010, and also the

audit.

audit provides a reasonable basis for our opinion and

we report that:

(iii) The Balance Sheet and profit and loss account dealt

with by this report are in agreement with the books of

account;

Sheet and profit and loss account dealt with by this

report comply with the accounting standards referred to

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

the directors, as on 31st March 2010 and taken on

the directors is disqualified as on 31st March 2010 from

(a) in the case of the balance sheet, of the state of affairs

of the company as at March 31, 2010;

(b) in the case of the profit & loss account, of the profit

(VINIT BAGARIA)

Partner

Place: Gurgaon

Date: May 29, 2010

61Annual Report 2009-201060 Vatika Marketing Ltd.

Directors) Rules 1988 are not relevant in view of the

review.

the Company from time to time. The Directors wish to

ACKNOWLEDGMENT

place on record their appreciation of efficient and loyal

services rendered by the officers and staff members of

the Company. Your Company's personnel relations

continued to be excellent.

For and on behalf of Board

Director Director

Place : New Delhi

Date : May 29, 2010

A UDITOR’S REPORT

The Members of Vatika Marketing Limited

We have audited the attached balance sheet of Vatika

Marketing Limited as at March 31, 2010, and also the

audit.

we report that:

account;

the directors, as on 31st March 2010 and taken on

the directors is disqualified as on 31st March 2010 from

of the company as at March 31, 2010;

(b) in the case of the profit & loss account, of the profit

(VINIT BAGARIA)

Partner

Place: Gurgaon

Date: May 29, 2010

REPORT

(a) The company has maintained records showing full

particulars including quantitative details and situation of

fixed assets.

(b) According to the information and explanations given

to us, the assets have been physically verified by the

management during the year. No material discrepancies

were noticed on such verification.

(c) The company has not disposed off its Substantial fixed

assets during the year.

(b) In our opinion, the procedures of physical verification

of inventories followed by the management are

reasonable and adequate in relation to the size of the

company and the nature of its business.

The company has not taken/given unsecured loans

from/ to companies, firms and other parties covered in

the Register maintained under Section 301 of the

to the sale of services. During the course of our audit, we

have not observed any continuing failure to correct

major weakness in internal controls.

entered.

and aggregating during the year to Rs. 500,000/- or

more, in respect of each party, have been made at prices

which are reasonable having regard to the prevailing

market prices at the relevant time.

The Company is not required to maintain a formal

internal audit system.

The Central Government has not prescribed

maintenance of cost records under Section 209 (1) (d) of

the Companies Act, 1956 for any of the products of the

Company.

became payable.

to us, no dues of sale tax, income tax, customs duty

wealth tax, service tax, excise duty, and cess, as

of any dispute.

financial year covered by our audit and also in the

immediately preceding financial year.

The company has no borrowings from any financial

institution, bank or debenture holder.

The Company is not a chit fund or a nidhi/mutual

benefit fund/society.

As per information and explanations provided to us,

the company has not given any guarantee for loans

taken by others from bank or financial institutions.

the year concerned.

given to us and on an overall examination of the balance

sheet of the company, we report that the no funds raised

on short - term basis have been used for long - term

investment.

The Company has not issued any debentures during

the year under review.

The Company has not raised any money by public

issue during the year under review.

given to us, no fraud on or by the Company has been

noticed or reported during the year.

(VINIT BAGARIA)

Partner

Place: Gurgaon

Date: May 29, 2010

REPORT

(a) The company has maintained records showing full

particulars including quantitative details and situation of

fixed assets.

to us, the assets have been physically verified by the

management during the year. No material discrepancies

were noticed on such verification.

(c) The company has not disposed off its Substantial fixed

The company has not taken/given unsecured loans

from/ to companies, firms and other parties covered in

the Register maintained under Section 301 of the

to the sale of services. During the course of our audit, we

entered.

and aggregating during the year to Rs. 500,000/- or

more, in respect of each party, have been made at prices

which are reasonable having regard to the prevailing

market prices at the relevant time.

The Company is not required to maintain a formal

internal audit system.

maintenance of cost records under Section 209 (1) (d) of

the Companies Act, 1956 for any of the products of the

Company.

became payable.

of any dispute.

financial year covered by our audit and also in the

immediately preceding financial year.

The company has no borrowings from any financial

institution, bank or debenture holder.

The Company is not a chit fund or a nidhi/mutual

the year concerned.

on short - term basis have been used for long - term

investment.

The Company has not issued any debentures during

the year under review.

(VINIT BAGARIA)

Partner

Place: Gurgaon

Date: May 29, 2010

BALANCE SHEET OF VATIKA

MARKETING LTD. AS AT

MARCH 31, 2010 PROFIT & LOSS ACCOUNT OF VATIKA

MARKETING LTD. FOR THE

Rs. Rs. Rs. Rs.

SOURCES OF FUNDS

Share Capital 1 500,000 500,000

Reserves & Surplus 2 3,994,546 4,430,750

Fixed Assets: 3

(a) Gross Block 1,038,464 228,164

(b) Less: Depreciation 144,122 110,260

(c) Net Block 894,342 117,904

(d) Investments 4 - 7,812,270

Deferred Tax Asset - Net 5 242,000 179,000

(a) Inventories 6 216,817 571,319

(b) Sundry Debtors 7 14,539,180 6,057,973

(d) Loans & Advances 9 35,218,559 11,297,662

Less: Current Liabilities & Provisions 10 83,311,213 33,912,052

Net Current Assets 3,358,204 (3,178,424)

COMPANY'S

4,494,546 4,930,750

86,669,417 30,733,628

4, 494,546 4,930,750

Schedules 2009-2010

Rs. Rs.

INCOME

Project Maintenance Charges 11 32,538,402 24,157,076

Other Income 12 3,507,887 2,149,977

EXPENDITURE

Project Maintenance Expenses 13 17,732,991 12,724,960

Interest- Others 1,409 380

Depreciation 42,164 27,090

Other expenses 15 5,983,381 4,263,931

Less: Direct Taxes 16 1,007,000 773,627

Profit after tax 3,062,059 1,833,147

Surplus brought forward from the previous year 1,912,750 179,603

Appropriations:

Transfer to General Reserve 1,000,000 100,000

Corporate Dividend Tax 498,263 -

SURPLUS CARRIED TO BALANCE SHEET

EARNING PER SHARE

36,046,289 26,307,053

31,977,230 23,700,279

4,974,809 2,012,750

476,546 1,912,750

2008-2009

VINIT BAGARIA Ankur Gupta Varun Gupta

Partner Director Director

Date: May 29, 2010 Date: May 29, 2010

BALANCE SHEET OF VATIKA

MARKETING LTD. AS AT

MARCH 31, 2010 PROFIT & LOSS ACCOUNT OF VATIKA

MARKETING LTD. FOR THE

Rs. Rs. Rs. Rs.

SOURCES OF FUNDS

Share Capital 1 500,000 500,000

Reserves & Surplus 2 3,994,546 4,430,750

Fixed Assets: 3

(a) Gross Block 1,038,464 228,164

(b) Less: Depreciation 144,122 110,260

(c) Net Block 894,342 117,904

(d) Investments 4 - 7,812,270

Deferred Tax Asset - Net 5 242,000 179,000

(a) Inventories 6 216,817 571,319

(b) Sundry Debtors 7 14,539,180 6,057,973

(d) Loans & Advances 9 35,218,559 11,297,662

Net Current Assets 3,358,204 (3,178,424)

COMPANY'S

4,494,546 4,930,750

86,669,417 30,733,628

4, 494,546 4,930,750

Schedules 2009-2010

Rs. Rs.

INCOME

Project Maintenance Charges 11 32,538,402 24,157,076

Other Income 12 3,507,887 2,149,977

EXPENDITURE

Project Maintenance Expenses 13 17,732,991 12,724,960

Interest- Others 1,409 380

Other expenses 15 5,983,381 4,263,931

Less: Direct Taxes 16 1,007,000 773,627

Profit after tax 3,062,059 1,833,147

Surplus brought forward from the previous year 1,912,750 179,603

Appropriations:

Transfer to General Reserve 1,000,000 100,000

Corporate Dividend Tax 498,263 -

SURPLUS CARRIED TO BALANCE SHEET

EARNING PER SHARE

36,046,289 26,307,053

31,977,230 23,700,279

4,974,809 2,012,750

476,546 1,912,750

2008-2009

Date: May 29, 2010 Date: May 29, 2010

As at 31/03/2010

Rs. Rs.

1. SHARE CAPITAL

Authorised:

50000 Equity shares of Rs. 10/- each 500,000 500,000

50000 Equity shares of Rs. 10/- each fully paid up held by

Ashiana Housing Limited, the holding company 500,000 500,000

General Reserves :

As per last account 2,500,000 2,400,000

Add: Transfer from Profit & Loss A/c 1,000,000 100,000

3,500,000 2,500,000

Capial Reserve 18,000 18,000

Profit & Loss Account 476,546 1,912,750

500,000 500,000

3,994,546 4,430,750

As at 31/03/2009

No. of Shares/

4. INVESTMENTS - LONG TERM

In Mutual Funds - Unquoted

Birla Bond Plus - Growth Option 10 - - 42,364 500,000

Birla Cash Plus - Retail - GR 10 - - 83,017 1,800,000

DSPML Opportunities Fund - Div. Reinvestment 10 - - 87,585 2,492,509

DSPML Tiger Fund - Div. Reinvestment 10 - - 15,546 600,000

Fidelity Equity Fund - Div. Reinvestment 10 - - 24,450 250,000

Franklin India Prima Fund Dividend - Reinvestment 10 - - 19,755 1,419,761

HDFC High Interest Fund - Short Term 10 - - 63,978 750,000

- 7,812,270

Repurchase Price of units of mutual funds - 6,680,525

SCHEDULES TO THE ACCOUNTS As at 31/03/2009

5. DEFERRED TAX - NET

Deferred Tax Assets on

Employee Benefits 287,000 202,000

Less : Deferred Tax Liability on Fiscal allowance of fixed assets 45,000 23,000

6. INVENTORIES

(As taken, valued and certified by the Management)

Maintenance Materials 216,817 571,319

7. SUNDRY DEBTORS

Due for more than six months 5,764,892 2,642,666

Others 8,774,288 3,415,307

Cash-in-hand 178,584 92,173

With Scheduled Banks:

In Current Account 2,531,559 7,140,623

In Fixed Deposit Accounts (Pledge with Banks

Rs.13,18,156/-; P.Y. 8,17,935/-) 33,960,737 5,270,767

9. LOANS & ADVANCES

Advances recoverable in cash or in kind or for value to be received 23,892,306 484,470

Deposits 10,215,826 10,106,526

Taxation Advances and Refundables 1,110,427 706,666

Advance from Customers 10,051,526 3,648,987

Deposit from Customers 60,140,456 24,826,346

For Taxation 1,715,000 645,000

For Gratuity 928,079 652,171

For Corporate Dividend Tax 498,263 -

242,000 179,000

216,817 571,319

14,539,180 6,057,973

36,694,861 12,806,674

35,218,559 11,297,662

CURRENT LIABILITIES

77,169,871 32,614,881 PROVISIONS

83,311,213 33,912,052

2009 - 2010 2008 - 2009

Rs. Rs.

01/04/2009

Additions/

(Deductions)

31/03/2010

31/03/2009

For the Year Up to

31/03/2010

31/03/2009

GOODWILL 0.00 500,000 500,000 0.00 0.00 0.00 500,000 0.00

OFFICE EQUIPMENT 36,900 - 2,600 9,061 124 883 1,717 27,839

(34,300) (8,302)

COMPUTER 162,866 344,600 507,466 83,607 39,342 122,949 384,517 79,259

VEHICLE 28,398 - 28,398 17,592 2,698 20,290 8,108 10,806

PREVIOUS YEAR FIGURES 181,634 46,530.00 228,164 83,170 27,090 110,260 - 117,904

TOTAL 228,164 844,600 1,038,464 110,260 42,164 144,122 894,342 117,904

(34,300) (8,302)

3. FIXED ASSETS

As at 31/03/2010

Rs. Rs.

1. SHARE CAPITAL

Authorised:

50000 Equity shares of Rs. 10/- each 500,000 500,000

50000 Equity shares of Rs. 10/- each fully paid up held by

Ashiana Housing Limited, the holding company 500,000 500,000

General Reserves :

As per last account 2,500,000 2,400,000

Add: Transfer from Profit & Loss A/c 1,000,000 100,000

3,500,000 2,500,000

Capial Reserve 18,000 18,000

Profit & Loss Account 476,546 1,912,750

500,000 500,000

3,994,546 4,430,750

As at 31/03/2009

No. of Shares/

4. INVESTMENTS - LONG TERM

In Mutual Funds - Unquoted

Birla Bond Plus - Growth Option 10 - - 42,364 500,000

Birla Cash Plus - Retail - GR 10 - - 83,017 1,800,000

DSPML Opportunities Fund - Div. Reinvestment 10 - - 87,585 2,492,509

DSPML Tiger Fund - Div. Reinvestment 10 - - 15,546 600,000

Fidelity Equity Fund - Div. Reinvestment 10 - - 24,450 250,000

Franklin India Prima Fund Dividend - Reinvestment 10 - - 19,755 1,419,761

HDFC High Interest Fund - Short Term 10 - - 63,978 750,000

- 7,812,270

Repurchase Price of units of mutual funds - 6,680,525

SCHEDULES TO THE ACCOUNTS As at 31/03/2009

5. DEFERRED TAX - NET

Deferred Tax Assets on

Employee Benefits 287,000 202,000

Less : Deferred Tax Liability on Fiscal allowance of fixed assets 45,000 23,000

6. INVENTORIES

(As taken, valued and certified by the Management)

Maintenance Materials 216,817 571,319

7. SUNDRY DEBTORS

Due for more than six months 5,764,892 2,642,666

Others 8,774,288 3,415,307

Cash-in-hand 178,584 92,173

In Fixed Deposit Accounts (Pledge with Banks

Rs.13,18,156/-; P.Y. 8,17,935/-) 33,960,737 5,270,767

9. LOANS & ADVANCES

Advances recoverable in cash or in kind or for value to be received 23,892,306 484,470

Deposits 10,215,826 10,106,526

Taxation Advances and Refundables 1,110,427 706,666

Advance from Customers 10,051,526 3,648,987

Deposit from Customers 60,140,456 24,826,346

For Taxation 1,715,000 645,000

For Gratuity 928,079 652,171

For Corporate Dividend Tax 498,263 -

242,000 179,000

216,817 571,319

14,539,180 6,057,973

36,694,861 12,806,674

35,218,559 11,297,662

CURRENT LIABILITIES

77,169,871 32,614,881 PROVISIONS

83,311,213 33,912,052

2009 - 2010 2008 - 2009

Rs. Rs.

01/04/2009

Additions/

(Deductions)

31/03/2010

31/03/2009

For the Year Up to

31/03/2010

31/03/2009

GOODWILL 0.00 500,000 500,000 0.00 0.00 0.00 500,000 0.00

OFFICE EQUIPMENT 36,900 - 2,600 9,061 124 883 1,717 27,839

(34,300) (8,302)

COMPUTER 162,866 344,600 507,466 83,607 39,342 122,949 384,517 79,259

VEHICLE 28,398 - 28,398 17,592 2,698 20,290 8,108 10,806

PREVIOUS YEAR FIGURES 181,634 46,530.00 228,164 83,170 27,090 110,260 - 117,904

TOTAL 228,164 844,600 1,038,464 110,260 42,164 144,122 894,342 117,904

(34,300) (8,302)

3. FIXED ASSETS

2009 - 2010

Rs. Rs.

11. PROJECT MAINTENANCE CHARGES

General Maintenance Charges 29,643,691 22,636,241

Capital Maintenance Charges (Net) 2,894,711 1,520,835

12. OTHER INCOME

Interest (Includes TDS Rs.132,671/-; P.Y. Rs. 26,927/-) 1,853,676 650,769

Profit on sale of investments 872,746 192,474

Dividend 294,734 483,536

Miscellaneous Receipts 473,303 441,362

Excess provision for Gratuity written back - 275,960

Liabilities Written Back 13,428 105,876

13. PROJECT MAINTENANCE EXPENSES

Consumption of Maintenance Materials (Indigenous) 1,504,048 775,889

Work Charges 6,561,852 4,829,783

Power & Fuel (net) 721,266 416,184

Security Charges 5,993,948 4,763,291

Supervision Charges 9,488 5,500

Other Maintenance Expenses 2,942,389 1,934,313

Salary, Allowances, Bonus & Gratuity 7,642,193 6,237,255

(including Provision for Gratuity Rs. 2,75,908/- ;P.Y. Rs. 55,178/-)

Contribution to Provident Fund 227,979 211,909

Staff Welfare 347,113 234,754

15. OTHER EXPENSES

Rent 875,083 670,500

Insurance 8,603 -

Public Relation and Communication 962,905 634,142

Printing and Stationery 458,005 156,345

Establishment Charges 19,856 20,132

Traveling & Conveyance 1,043,608 790,852

Telephone, Telex & Fax 284,140 235,282

For Internal Audit 73,236 -

For Tax Audit 25,000 16,545

Irrecoverable Balances Written off - 9,867

Fixed Assets Written off 25,998 -

Items relating to previous year 375 22,040

16. DIRECT TAXES

Income Tax 1,070,000 390,000

Deferred Tax (63,000) 272,000

Fringe Benefit Tax - 102,000

Income tax Adjustments 9,627

32,538,402 24,157,076

3,507,887 2,149,977

17,732,991 12,724,960

8,217,285 6,683,918

5,983,381 4,263,931

1,007,000 773,627

2008 - 2009SCHEDULES TO THE ACCOUNTS17. NOTES ON ACCOUNTS

Fixed assets are valued at cost and depreciation is

provisions of Schedule XIV to the Companies Act, 1956.

Long term investments are carried at acquisition cost and

investments intended to be held for less than one year are

classified as current investments and are carried at lower

of cost and market value.

Maintenance Materials and Shops are valued at cost.

(a) Sale of constructed unit and others is accounted for

on the basis of date of delivery of physical possession to

the respective customer.

(b) Project maintenance charges and other income are

accounted for on accrual basis except where the receipt

of income is uncertain.

(c) Interest from customer is accounted for on receipt

basis.

one or more subsequent period.

INVESTMENTS :

INVENTORIES:

SALES, PROJECT MAINTENANCE FEE AND OTHER

INCOME :

EMPLOYEE BENEFITS:

TAXES ON INCOME :

2009 - 2010

Rs. Rs.

(a) amount used as

numerator in calculating

basic and diluted EPS :

Profit after tax (Rs.) 3,062,059 1,833,147

(b) weighted average

number of equity shares

used as the denominator

in calculating EPS (Nos) :

Opening Balance 50,000 50,000

For Basic EPS

50,000 50,000

2008 - 2009

Preliminary Expenses is written off over a period of ten

years.

Impairment loss in the value of assets as specified in

Accounting Standard - 28 is recognized whenever

(a) In view of non confirmation/response from the

suppliers regarding their status as SSI units, the amount

due to Small Scale Industrial undertaking can not be

ascertained.

(b) Due to non receipt of confirmation/response from the

suppliers for compliance under the Micro, Small and

Medium Enterprises Development Act, 2006, the

company is unable to provide the information required

under the said Act.

The Earning Per Share (EPS) has been calculated as

specified in Accounting Standard - 20 on "Earning Per

Share" and related disclosures are as below :

MISCELLANEOUS EXPENDITURE :

IMPAIRMENT OF ASSETS:

2009 - 2010

Contribution to Defined

Contribution Plan,

recognised are charged

off for the year are as

under:

Employer’s Contribution

to Provident & Pension

Fund 2.28 2.12

Defined Contribution Plan 2008 - 2009

Defined Benefit Plan :

4. The disclosures required under Accounting Standard-

15, Employees Benefits, notified in the companies

2009 - 2010

Rs. Rs.

12. OTHER INCOME

Interest (Includes TDS Rs.132,671/-; P.Y. Rs. 26,927/-) 1,853,676 650,769

Profit on sale of investments 872,746 192,474

Dividend 294,734 483,536

Miscellaneous Receipts 473,303 441,362

Excess provision for Gratuity written back - 275,960

13. PROJECT MAINTENANCE EXPENSES

Consumption of Maintenance Materials (Indigenous) 1,504,048 775,889

Work Charges 6,561,852 4,829,783

Power & Fuel (net) 721,266 416,184

Security Charges 5,993,948 4,763,291

Supervision Charges 9,488 5,500

Other Maintenance Expenses 2,942,389 1,934,313

Salary, Allowances, Bonus & Gratuity 7,642,193 6,237,255

(including Provision for Gratuity Rs. 2,75,908/- ;P.Y. Rs. 55,178/-)

Contribution to Provident Fund 227,979 211,909

Staff Welfare 347,113 234,754

15. OTHER EXPENSES

Rent 875,083 670,500

Insurance 8,603 -

Traveling & Conveyance 1,043,608 790,852

Telephone, Telex & Fax 284,140 235,282

For Internal Audit 73,236 -

Irrecoverable Balances Written off - 9,867

Fixed Assets Written off 25,998 -

Items relating to previous year 375 22,040

16. DIRECT TAXES

Income Tax 1,070,000 390,000

Deferred Tax (63,000) 272,000

Income tax Adjustments 9,627

32,538,402 24,157,076

3,507,887 2,149,977

17,732,991 12,724,960

8,217,285 6,683,918

5,983,381 4,263,931

1,007,000 773,627

2008 - 2009SCHEDULES TO THE ACCOUNTS17. NOTES ON ACCOUNTS

Fixed assets are valued at cost and depreciation is

of cost and market value.

Maintenance Materials and Shops are valued at cost.

(a) Sale of constructed unit and others is accounted for

on the basis of date of delivery of physical possession to

the respective customer.

(b) Project maintenance charges and other income are

basis.

INVESTMENTS :

INVENTORIES:

SALES, PROJECT MAINTENANCE FEE AND OTHER

INCOME :

EMPLOYEE BENEFITS:

TAXES ON INCOME :

2009 - 2010

Rs. Rs.

(a) amount used as

numerator in calculating

basic and diluted EPS :

Profit after tax (Rs.) 3,062,059 1,833,147

(b) weighted average

number of equity shares

used as the denominator

in calculating EPS (Nos) :

Opening Balance 50,000 50,000

For Basic EPS

50,000 50,000

2008 - 2009

Preliminary Expenses is written off over a period of ten

years.

ascertained.

under the said Act.

MISCELLANEOUS EXPENDITURE :

2009 - 2010

Contribution Plan,

recognised are charged

off for the year are as

under:

Employer’s Contribution

to Provident & Pension

Fund 2.28 2.12

Defined Contribution Plan 2008 - 2009

Defined Benefit Plan :

4. The disclosures required under Accounting Standard-

15, Employees Benefits, notified in the companies

3. Position of Mobilisation and Total Liabilities : 4,494 Total Assets : 4,494

Deployment of funds

Sources of Funds Paid-up Capital : 500 Reserves & Surplus : 3,994

Secured Loans : Nil Unsecured Loans : Nil

Application of Funds Net Fixed Assets : 894 Investments : Nil

Accumulated Losses : Nil Deferred Tax Assets : 242

Performance of Company Turnover (Gross Revenue) : 36,046 Total Expenditure : 31,977

+/-- Profit/Loss Before Tax : +4,069 + -- Profit/Loss After Tax : +3,062

Basic Earning per share : 61.24 Dividend Rate % : 600%

(ITC Code)

Maintenance

of the year 6.52 7.62

Actuarial (gain)/loss 0.80 (2.75)

Benefits (paid) (0.14) -

and obligations

Present value of obligation as at

March 31, 2010 9.28 6.52

Actuarial (gain) / loss 0.80 (2.75)

Net Cost 2.90 (1.10)

Gratuity Unfunded

2009-2010 2008-2009(Rs.) Lakhs (Rs.) Lakhs

Opening Stock - -

(1) (113,742)

Purchases - -

(-) (-)

Sales - -

(1) (297,945)

Closing Stock - -

AmountShops

(Nos.) Rs.

acturial valuation takes into account factors like inflation,

seniority, promotion and other relevant factors. The

above information is certified by the Actuary.

Stock, Purchase and Sales:5.

Salary 1,249,167 (1,000,000)

Perquisites 405,704 (441,311)

Rs. Rs.

6. Remuneration of Whole Time Directors:

7. Related parties and transactions with them as

the auditors.

2009 - 2010 2008 - 2009

Maintenance charges received 6.07 6.92

Rent paid 6.00 6.00

Hire charges paid 1.20 1.20

Year end receivable (net) 10.15 0.39

Deposit Given 100.00 100.00

Purchase of Business 5.00 Nil

Year end receivable 216.46 Nil

Ashiana Housing Ltd

(c) Individuals owning directly or indirectly, an interest in

the voting power of the company that gives them control

or significant influence over the company, and relatives

of any such individual.

(d) Key management personnel and their relatives.

Remuneration

Shri Vishal Gupta, Director 3.00 3.00

Shri Ankur Gupta, Director 3.00 3.00

Smt Rachna Gupta, Director 3.50 4.00

Shri Varun Gupta, Director 2.99 -

2009 - 2010 2008 - 2009

(e) Enterprises over which any person described in (c) or

(d) is able to exercise significant influence :

(f) Amount Written off in respect of above parties

specified in Accounting Standard – 28 and cash

generating capacity of those assets, in the management

perception, there is no impairment of such assets as

(a) Previous year figures are rearranged/regrouped

wherever considered necessary.

(b) Previous year figures above are given in brackets.

Transactions

(a) Enterprises that directly, or indirectly through one or

more intermediaries, Control or are controlled by or are

under common control with the company (including

holding companies, subsidiaries and fellow

subsidiaries) :

The Schedules referred above form an integral part of the accounting. In terms of our report of even date attached herewith

Date: May 29, 2010 Date: May 29, 2010

Deployment of funds

Sources of Funds Paid-up Capital : 500 Reserves & Surplus : 3,994

Secured Loans : Nil Unsecured Loans : Nil

Application of Funds Net Fixed Assets : 894 Investments : Nil

Accumulated Losses : Nil Deferred Tax Assets : 242

+/-- Profit/Loss Before Tax : +4,069 + -- Profit/Loss After Tax : +3,062

Basic Earning per share : 61.24 Dividend Rate % : 600%

(ITC Code)

Maintenance

Actuarial (gain)/loss 0.80 (2.75)

Benefits (paid) (0.14) -

and obligations

March 31, 2010 9.28 6.52

Actuarial (gain) / loss 0.80 (2.75)

Net Cost 2.90 (1.10)

Gratuity Unfunded

2009-2010 2008-2009(Rs.) Lakhs (Rs.) Lakhs

Opening Stock - -

(1) (113,742)

Purchases - -

(-) (-)

Sales - -

(1) (297,945)

Closing Stock - -

AmountShops

(Nos.) Rs.

acturial valuation takes into account factors like inflation,

seniority, promotion and other relevant factors. The

above information is certified by the Actuary.

Stock, Purchase and Sales:5.

Salary 1,249,167 (1,000,000)

Perquisites 405,704 (441,311)

Rs. Rs.

6. Remuneration of Whole Time Directors:

7. Related parties and transactions with them as

the auditors.

2009 - 2010 2008 - 2009

Maintenance charges received 6.07 6.92

Rent paid 6.00 6.00

Year end receivable (net) 10.15 0.39

Deposit Given 100.00 100.00

Purchase of Business 5.00 Nil

Year end receivable 216.46 Nil

Ashiana Housing Ltd

(c) Individuals owning directly or indirectly, an interest in

the voting power of the company that gives them control

or significant influence over the company, and relatives

of any such individual.

(d) Key management personnel and their relatives.

Remuneration

Shri Vishal Gupta, Director 3.00 3.00

Shri Ankur Gupta, Director 3.00 3.00

Smt Rachna Gupta, Director 3.50 4.00

Shri Varun Gupta, Director 2.99 -

2009 - 2010 2008 - 2009

(e) Enterprises over which any person described in (c) or

(d) is able to exercise significant influence :

(f) Amount Written off in respect of above parties

specified in Accounting Standard – 28 and cash

(a) Previous year figures are rearranged/regrouped

(b) Previous year figures above are given in brackets.

Transactions

(a) Enterprises that directly, or indirectly through one or

more intermediaries, Control or are controlled by or are

under common control with the company (including

holding companies, subsidiaries and fellow

subsidiaries) :

The Schedules referred above form an integral part of the accounting. In terms of our report of even date attached herewith

Date: May 29, 2010 Date: May 29, 2010

2009 - 2010 2008 - 2009

Rs. Rs.

Adjusted for :

Interest Income (1,853,676) (650,769)

Dividend (294,734) (483,536)

Income from Long Terms Investment (872,746) (192,474)

Fixed assets written off 25,998 -

Adjusted for :

Trade and other receivables (31,998,343) (8,254,643)

Inventories 354,502 (327,641)

Trade Payables and other payable 44,830,898 2,654,531

Direct Taxes paid / adjusted (403,761) (243,747)

Purchase of Fixed Assets (844,600) (46,530)

Net Purchase/sale of Investments 8,685,016 5,944,372

Dividend 294,734 483,536

Interest Income 1,853,676 650,769

Net Cash from investing activities (B)

Proceeds from issuance of share capital - -

Net Cash used in Financing activities (C) - -

NET INCREASE IN CASH AND CASH EQUIVALENTS (A + B + C) 23,888,187 2,167,732

CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR 12,806,674 10,638,942

CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR 36,694,861 12,806,674

1,116,065 1,307,085

13,899,361 (4,864,415)

9,988,826 7,032,147

72 Vatika Marketing Ltd.

Date: May 29, 2010 Date: May 29, 2010

A ASHIANA RETIREMENT

VILLAGES LIMITED

FINANCIAL RESULTS

DIVIDEND

DIRECTORS

AUDITORS

presenting the Eighth Annual Report, together with

audited statement of accounts for the year ended

March31, 2010.

During the year under review, your company has earned

an income of Rs. 7,36,12,315/- as against the income of

Rs. 9,01,85,615/- in the previous year. Further, your

company has recorded Rs. 1,10,83,592/- as profit after

tax as against Rs. 2,70,45,765/- for the previous year.

In terms of resolution passed under section 293 (1) (a) of

the Companies Act, 1956, at the Extraordinary General

Meeting, the Company has transferred, on going

concern basis, its Real Estate Agency and Facility

Management Business to Vatika Marketing Ltd. with

effect from 1st April, 2010.

equity share aggregating Rs. 92,40,050/- for the

financial year 2009-10.

During the year under review no change has been made

in the directorship of the company. At the forthcoming

annual general meeting of the company Shri Lalit Kumar

Chhawchharia and Shri Varun Gupta, Directors of the

Company retire by rotation and being eligible, offers

them for re-appointment.

retire at the conclusion of forthcoming Annual General

Meeting and being eligible, offer themselves for

re-appointment. The Company has received a certificate

to the effect that their re-appointment, if made, will be

within the prescribed limit under section 224(1B) of the

Companies Act, 1956. Auditors Report is self-

(i) In the preparation of the annual accounts, the

made that are reasonable and prudent so as to give

a true and fair view of the state of affairs of the

Company as at March 31, 2010 and of the profit

and other irregularities;

concern basis.

Directors) Rules 1988 are not relevant in the view of the

review.

ACKNOWLEDGMENT

the Company from time to time.

Place : New Delhi Om Prakash Gupta

Date : May 29, 2010. Chairman

75Annual Report 2009-201074 Ashiana Retirement Villages Ltd.

FINANCIAL RESULTS

DIVIDEND

DIRECTORS

AUDITORS

presenting the Eighth Annual Report, together with

audited statement of accounts for the year ended

March31, 2010.

During the year under review, your company has earned

an income of Rs. 7,36,12,315/- as against the income of

Rs. 9,01,85,615/- in the previous year. Further, your

company has recorded Rs. 1,10,83,592/- as profit after

tax as against Rs. 2,70,45,765/- for the previous year.

In terms of resolution passed under section 293 (1) (a) of

the Companies Act, 1956, at the Extraordinary General

Meeting, the Company has transferred, on going

concern basis, its Real Estate Agency and Facility

Management Business to Vatika Marketing Ltd. with

effect from 1st April, 2010.

equity share aggregating Rs. 92,40,050/- for the

financial year 2009-10.

During the year under review no change has been made

in the directorship of the company. At the forthcoming

annual general meeting of the company Shri Lalit Kumar

Chhawchharia and Shri Varun Gupta, Directors of the

Company retire by rotation and being eligible, offers

them for re-appointment.

retire at the conclusion of forthcoming Annual General

Meeting and being eligible, offer themselves for

re-appointment. The Company has received a certificate

to the effect that their re-appointment, if made, will be

within the prescribed limit under section 224(1B) of the

Companies Act, 1956. Auditors Report is self-

(i) In the preparation of the annual accounts, the

made that are reasonable and prudent so as to give

a true and fair view of the state of affairs of the

Company as at March 31, 2010 and of the profit

and other irregularities;

concern basis.

Directors) Rules 1988 are not relevant in the view of the

review.

ACKNOWLEDGMENT

the Company from time to time.

Place : New Delhi Om Prakash Gupta

Date : May 29, 2010. Chairman

75Annual Report 2009-201074 Ashiana Retirement Villages Ltd.

A UDITOR’S REPORT A NNEXURE TO THE AUDITOR’S

REPORT

76 Ashiana Retirement Villages Ltd. 77Annual Report 2009-2010

The Members of Ashiana Retirement Villages Limited

We have audited the attached balance sheet of Ashiana

Retirement Villages Limited as at March 31, 2010, 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.

we report that:

(I) We have obtained all the information and

account;

of the company as at 31st March 2010;

(VINIT BAGARIA)

Partner

Place: Gurgaon

Date: May 29, 2010

to us, all the fixed assets, except capital work in progress

have been physically verified by the management during

the year. No material discrepancies were noticed on

such verification.

(c) The company has not disposed substantial off its fixed

(a) The Company has not granted any loans to

companies, firms and other parties covered in the

Register maintained under Section 301 of the

(b) The company has taken loans from a company

covered in the register maintained under Section 301 of

the Companies Act, 1956. The maximum amount

involved during the year was Rs. 101 lakhs and year-end

balances of loans taken from such parties are Rs. Nil.

(c) In our opinion the rate of interest and other terms and

conditions on which loans have been taken from the

parties and a company listed in the register maintained

under Section 301 of the Companies Act, 1956 are,

prima facie, not prejudicial to the interest of the

company.

(d) The company is regular in repaying the principal

payment of interest, as applicable.

(e) As explained to us there is no overdue amount of loan

taken from the company listed in the registers maintained

purchases of inventory and fixed assets and sale of

goods and services. During the course of our audit, we

contracts or arrangements referred to in Section 301 of

the Companies Act, 1956 have been entered in the

register required to be maintained under that Section.

(b) In our opinion and according to the information

and explanations given to us, a transaction made in

pursuance of contracts or arrangements entered in the

registers maintained under Section 301 of the

Companies Act, 1956 and exceeding the value of five

lakh rupees in respect of a party during the year has

been made at price which is reasonable having regard

to prevailing market prices at the relevant time.

accepted any deposits from the public.

In our opinion, the Company has a formal internal

audit system commensurate with the size and nature of its

business.

maintenance of cost records under Section 209 (1) (d)

of the Companies Act, 1956 for any of the products of

the Company.

A UDITOR’S REPORT A NNEXURE TO THE AUDITOR’S

REPORT

The Members of Ashiana Retirement Villages Limited

We have audited the attached balance sheet of Ashiana

Retirement Villages Limited as at March 31, 2010, 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

on our audit.

we report that:

(I) We have obtained all the information and

account;

of the company as at 31st March 2010;

(VINIT BAGARIA)

Partner

Place: Gurgaon

Date: May 29, 2010

to us, all the fixed assets, except capital work in progress

have been physically verified by the management during

the year. No material discrepancies were noticed on

such verification.

(c) The company has not disposed substantial off its fixed

(a) The Company has not granted any loans to

companies, firms and other parties covered in the

Register maintained under Section 301 of the

(b) The company has taken loans from a company

covered in the register maintained under Section 301 of

the Companies Act, 1956. The maximum amount

involved during the year was Rs. 101 lakhs and year-end

balances of loans taken from such parties are Rs. Nil.

(c) In our opinion the rate of interest and other terms and

conditions on which loans have been taken from the

parties and a company listed in the register maintained

under Section 301 of the Companies Act, 1956 are,

prima facie, not prejudicial to the interest of the

company.

(d) The company is regular in repaying the principal

payment of interest, as applicable.

(e) As explained to us there is no overdue amount of loan

taken from the company listed in the registers maintained

purchases of inventory and fixed assets and sale of

goods and services. During the course of our audit, we

contracts or arrangements referred to in Section 301 of

the Companies Act, 1956 have been entered in the

register required to be maintained under that Section.

(b) In our opinion and according to the information

and explanations given to us, a transaction made in

pursuance of contracts or arrangements entered in the

registers maintained under Section 301 of the

Companies Act, 1956 and exceeding the value of five

lakh rupees in respect of a party during the year has

been made at price which is reasonable having regard

to prevailing market prices at the relevant time.

accepted any deposits from the public.

In our opinion, the Company has a formal internal

audit system commensurate with the size and nature of its

business.

maintenance of cost records under Section 209 (1) (d)

of the Companies Act, 1956 for any of the products of

the Company.

became payable.

of any dispute.

explanations given to us, the company has not defaulted

in repayment of dues to a financial institution, bank or

debenture holder, as applicable.

The Company is not a chit fund or a nidhi/ mutual

the year concerned.

on short- term basis have been used for long-term

investment.

The company has not made any allotment of shares

during the year under review.

The company has issued unsecured debentures, but

no securities or charge has been created in respect of

debentures issued by the company.

(VINIT BAGARIA)

Partner

Place: Gurgaon

Date: May 29, 2010

RETIREMENT VILLAGES LTD. AS AT

MARCH 31, 2010

Schedules As at 31/03/2010

Rs. Rs. Rs. Rs.

SOURCES OF FUNDS

Share Capital 1 92,400,500 92,400,500

Reserves & Surplus 2 70,755,562 163,156,062 70,446,677 162,847,177

Loan Funds:

Unsecured Loans 3 194,629,065 108,014,819

Security Deposit from Tree House Members 25,224,481 27,207,861

Fixed Assets: 4

(a) Gross Block 127,238,995 126,493,608

(c) Net Block

(d) Capital Work in Progress 239,919,573 165,477,494

Investments 5 145,075,697 116,170,257

Deferred Tax Asset - Net 6 3,454,000 2,044,000

(a) Inventories 7 9,208,109 6,069,479

(b) Sundry Debtors 8 2,479,758 6,994,608

(d) Loans & Advances 10 21,995,706 36,679,028

Net Current Assets (11,061,058) 9,897,068

Miscellaneous Expenditure 12 5,621,396 4,481,038

COMPANY'S

383,009,608 298,069,857

109,232,032 113,277,057

130,687,541 52,200,437

38,386,533 56,694,301

49,447,591 46,797,233

383,009,608 298,069,857

As at 31/03/2009

VINIT BAGARIA Nitin Sharma Ankur Gupta Varun Gupta

Partner Company Secretary Director Director

Date: May 29, 2010 Date: May 29, 2010

became payable.

of any dispute.

explanations given to us, the company has not defaulted

in repayment of dues to a financial institution, bank or

debenture holder, as applicable.

The Company is not a chit fund or a nidhi/ mutual

the year concerned.

on short- term basis have been used for long-term

investment.

The company has not made any allotment of shares

during the year under review.

The company has issued unsecured debentures, but

no securities or charge has been created in respect of

debentures issued by the company.

(VINIT BAGARIA)

Partner

Place: Gurgaon

Date: May 29, 2010

RETIREMENT VILLAGES LTD. AS AT

MARCH 31, 2010

Rs. Rs. Rs. Rs.

SOURCES OF FUNDS

Share Capital 1 92,400,500 92,400,500

Reserves & Surplus 2 70,755,562 163,156,062 70,446,677 162,847,177

Loan Funds:

Unsecured Loans 3 194,629,065 108,014,819

Security Deposit from Tree House Members 25,224,481 27,207,861

Fixed Assets: 4

(a) Gross Block 127,238,995 126,493,608

(c) Net Block

Investments 5 145,075,697 116,170,257

Deferred Tax Asset - Net 6 3,454,000 2,044,000

(a) Inventories 7 9,208,109 6,069,479

(b) Sundry Debtors 8 2,479,758 6,994,608

(d) Loans & Advances 10 21,995,706 36,679,028

Net Current Assets (11,061,058) 9,897,068

COMPANY'S

383,009,608 298,069,857

109,232,032 113,277,057

130,687,541 52,200,437

38,386,533 56,694,301

49,447,591 46,797,233

383,009,608 298,069,857

As at 31/03/2009

Date: May 29, 2010 Date: May 29, 2010

PROFIT & LOSS ACCOUNT OF ASHIANA RETIREMENT VILLAGES LTD. FOR THE YEAR ENDED MARCH 31, 2010

Schedules 2009-2010 2008-2009

Rs. Rs.

INCOME

Sales 13 33,733,557 52,681,032

Project Maintenance Charges 9,149,457 6,091,150

Commission 3,868,733 4,016,243

Other Income 14 26,860,568 27,397,190

Increase/ (Decrease) In Stock 15 - (376,400)

EXPENDITURE

Cost of Material 16 8,219,976 6,244,833

Power and Fuel 6,072,804 5,284,658

Project Maintenance Expenses 4,823,934 3,658,264

Hotel and Club running Expenses 16,293,800 17,088,296

Cost of borrowing 17 1,214,151 533,486

Other expenses 19 10,841,743 10,028,028

Depreciation 4,797,901 4,755,891

Less: Direct Taxes 20 (1,410,000) 4,363,000

PROFIT AFTER TAX 11,083,592 27,045,765

Appropriations:

Surplus Carried to balance sheet

EARNING PER SHARE

Basic 1.20 2.93

Diluted 0.59 1.45

73,612,315 89,809,215

63,938,723 58,400,450

17,130,269 28,046,677

5,355,562 6,046,677

As at 31/03/2010

Rs. Rs.

1. SHARE CAPITAL

Authorised:

9240050 Equity shares of Rs. 10/- each fully paid up in cash 92,400,500 92,400,500

Held by Ashiana Housing Limited, the holding company

General Reserve

As per the last account 50,000,000 28,000,000

Add: Transfer from Profit & Loss Account 1,000,000 22,000,000

51,000,000 50,000,000

Securities Premium Account 14,400,000 14,400,000

3. UNSECURED LOANS

(i) Loans:

From Bodies Corporate

-Holding Company - 10,000,000

-Others 629,065 4,014,819

(ii) 1000000 Zero Percent Unsecured Optionally Fully Convertible

Debentures of Rs.100/- each Series - II (paid up Rs.94/- per debenture)

convertible into Equity Shares of Rs.10/- each at par, to the extent of

amount paid up, at the option of Debenture Holders within Twelve

years from the date of allotment or redeemable after one year from

the date of allotment, (18-08-2007), at the option of the Company if

option to convert into Equity Shares is not exercised by the Debenture

Holder - From Holding Company 94,000,000 94,000,000

(iii) 2000000 Zero Percent Unsecured Optionally Fully Convertible

Debentures of Rs.100/- each Series - III (paid up Rs.50/- per debenture)

amount paid up, at the option of Debenture Holders within Twelve years

from the date of allotment or redeemable after one year from the date

of allotment, (31-03-2010), at the option of the Company if option to

convert into Equity Shares is not exercised by the Debenture Holder -

From Holding Company 100,000,000 -

70,755,562 70,446,677

194,629,065 108,014,819

As at 31/03/2009

Date: May 29, 2010 Date: May 29, 2010

PROFIT & LOSS ACCOUNT OF ASHIANA RETIREMENT VILLAGES LTD. FOR THE YEAR ENDED MARCH 31, 2010

Schedules 2009-2010 2008-2009

Rs. Rs.

INCOME

Sales 13 33,733,557 52,681,032

Project Maintenance Charges 9,149,457 6,091,150

Commission 3,868,733 4,016,243

Other Income 14 26,860,568 27,397,190

Increase/ (Decrease) In Stock 15 - (376,400)

EXPENDITURE

Cost of Material 16 8,219,976 6,244,833

Power and Fuel 6,072,804 5,284,658

Cost of borrowing 17 1,214,151 533,486

Other expenses 19 10,841,743 10,028,028

Depreciation 4,797,901 4,755,891

Less: Direct Taxes 20 (1,410,000) 4,363,000

PROFIT AFTER TAX 11,083,592 27,045,765

Appropriations:

EARNING PER SHARE

Basic 1.20 2.93

Diluted 0.59 1.45

73,612,315 89,809,215

63,938,723 58,400,450

17,130,269 28,046,677

5,355,562 6,046,677

As at 31/03/2010

Rs. Rs.

1. SHARE CAPITAL

Authorised:

9240050 Equity shares of Rs. 10/- each fully paid up in cash 92,400,500 92,400,500

Held by Ashiana Housing Limited, the holding company

General Reserve

Add: Transfer from Profit & Loss Account 1,000,000 22,000,000

51,000,000 50,000,000

3. UNSECURED LOANS

(i) Loans:

-Holding Company - 10,000,000

-Others 629,065 4,014,819

(ii) 1000000 Zero Percent Unsecured Optionally Fully Convertible

Debentures of Rs.100/- each Series - II (paid up Rs.94/- per debenture)

amount paid up, at the option of Debenture Holders within Twelve

years from the date of allotment or redeemable after one year from

the date of allotment, (18-08-2007), at the option of the Company if

option to convert into Equity Shares is not exercised by the Debenture

Holder - From Holding Company 94,000,000 94,000,000

(iii) 2000000 Zero Percent Unsecured Optionally Fully Convertible

Debentures of Rs.100/- each Series - III (paid up Rs.50/- per debenture)

amount paid up, at the option of Debenture Holders within Twelve years

from the date of allotment or redeemable after one year from the date

of allotment, (31-03-2010), at the option of the Company if option to

convert into Equity Shares is not exercised by the Debenture Holder -

From Holding Company 100,000,000 -

70,755,562 70,446,677

194,629,065 108,014,819

As at 31/03/2009

Date: May 29, 2010 Date: May 29, 2010

01/04/2009

Additions/

(Deductions)

31/03/2010

31/03/2009

For the Year Up to

31/03/2010

31/03/2009

BUILDING 92,517,386 - 92,517,386 4,335,071 3,090,081 7,425,152 85,092,234 88,182,315

FURNITURE & FIXTURE 6,937,335 176,837 7,077,081 5,300,873 187,905 5,482,240 1,594,841 1,636,462

(37,091) (6,538)

PLANT AND MACHINERY 15,777,746 193,783 15,961,029 1,955,341 712,555 2,666,945 13,294,084 13,822,405

(10,500) (951)

ELECTRIC EQUIPMENT &

INSTALLATION 5,711,113 - 5,711,113 643,561 259,030 902,591 4,808,522 5,067,552

OFFICE FACILITIES AND

EQUIPMENT 5,233,426 422,358 5,655,784 953,441 518,253 1,471,694 4,184,090 4,279,985

VEHICLES 316,602 - 316,602 28,264 30,077 58,341 258,261 288,338

CAPITAL WORK IN PROGRESS

VILLAGE CENTRE 52,200,437 78,487,104 130,687,541 130,687,541 52,200,437

PREVIOUS YEAR FIGURES 150,846,558 28,756,917 178,694,045 8,460,660 4,755,891 13,216,551 - 165,477,494

(920,502) -

TOTAL 126,493,608 792,978 127,238,995 13,216,551 4,797,901 18,006,963 109,232,032 113,277,057

(47,591) (7,489)

TOTAL 52,200,437 78,487,104 130,687,541 - - - 130,687,541 52,200,437

GRAND TOTAL 178,694,045 79,280,082 257,926,536 13,216,551 4,797,901 18,006,963 239,919,573 -

(47,591) (7,489)

4. FIXED ASSETS

No. of Shares/

5. INVESTMENTS

(I) LONG TERM INVESTMENT

Unquoted

National Saving Certificate 30,000 30,000

(Lodged with Sales Tax Authorities)

Quoted

Ashiana Housing Ltd. (includes 465282 bonus shares) 10 651,395 2,639,549 651,395 2,639,549

IFGL Refractories Ltd 10 10,224 790,939 10,224 790,939

M/s Ashiana Manglam Developers - In Capital Account 130,087,923 94,065,163

(i) 21 nos single room Flats in Rangoli - II, at Bhiwadi 3,833,500 3,833,500

(ii) Roof rights, Ashiana Trade Centre, Jamshedpur 1,500,000 1,500,000

(iii) Shops, Ashiana Trade Centre, Jamshedpur 313,186 313,186

(iv) Common Facility Area at Utsav, Bhiwadi 5,880,600 5,880,600

(a) In Government Securities

(b) In fully paid up Equity Shares

(c) In a Partnership Firm

(d) In Immovable Properties

As at 31/03/2009

No. of Shares/

(ll) CURRENT INVESTMENT - Unquoted

In Mutual Funds

DSP Blackrock Bond Liquidity Fund - Regular - Growth 10 - - 7,682.51 117,320

Templeton Floating Rate Income Fund Short Term Plan Retail 10 - - 439,185.37 7,000,000

Aggregate amount of quoted investments 3,430,488 3,430,488

Aggregate amount of unquoted investments 141,645,209 112,739,769

Market Value of quoted investments 63,945,098 20,996,102

Repurchase value of units of Mutual Fund - 7,175,346

145,075,697 116,170,257

As at 31/03/2010

Rs. Rs.

As at 31/03/2009

6. DEFERRED TAX ASSET - Net

Deferred Tax Assets on :

On Employee Benefits 346,000 259,000

On unabsorbed losses 7,746,000 4,208,000

Less: Deferred Tax Liability on Fiscal allowance of fixed assets (4,638,000) (2,423,000)

7. INVENTORIES

(As taken. valued and certified by the Management)

Stores 196,934 225,897

Raw Material 87,235 105,582

Construction Material 8,923,940 5,738,000

8. SUNDRY DEBTORS

Other Debts 2,281,691 3,066,685

Cash-in-hand 158,753 138,143

Cheques-in-hand - 63,416

In Fixed Deposit Account (pledged Rs.40000/-) 1,777,997 3,835,021

10. LOANS & ADVANCES

Advances recoverable in cash or in kind or for

value to be received 15,091,484 11,435,573

Advances against purchase of properties - 20,000,000

Security Deposit 811,149 495,249

Taxation Advances and Refundables 6,093,073 4,748,206

Deposit from Customers 205,320 25,850,245

Temporary Overdraft due to over issue of Cheques 1,227,914 910,745

For Gratuity 1,118,391 838,683

For Taxation 1,645,000 1,737,000

3,454,000 2,044,000

9,208,109 6,069,479

2,479,758 6,994,608

4,702,960 6,951,186

21,995,706 36,679,028

CURRENT LIABILITIES

35,909,493 44,221,550

PROVISIONS

49,447,591 46,797,233

01/04/2009

Additions/

(Deductions)

31/03/2010

31/03/2009

For the Year Up to

31/03/2010

31/03/2009

BUILDING 92,517,386 - 92,517,386 4,335,071 3,090,081 7,425,152 85,092,234 88,182,315

FURNITURE & FIXTURE 6,937,335 176,837 7,077,081 5,300,873 187,905 5,482,240 1,594,841 1,636,462

(37,091) (6,538)

PLANT AND MACHINERY 15,777,746 193,783 15,961,029 1,955,341 712,555 2,666,945 13,294,084 13,822,405

(10,500) (951)

ELECTRIC EQUIPMENT &

INSTALLATION 5,711,113 - 5,711,113 643,561 259,030 902,591 4,808,522 5,067,552

OFFICE FACILITIES AND

EQUIPMENT 5,233,426 422,358 5,655,784 953,441 518,253 1,471,694 4,184,090 4,279,985

VEHICLES 316,602 - 316,602 28,264 30,077 58,341 258,261 288,338

CAPITAL WORK IN PROGRESS

VILLAGE CENTRE 52,200,437 78,487,104 130,687,541 130,687,541 52,200,437

PREVIOUS YEAR FIGURES 150,846,558 28,756,917 178,694,045 8,460,660 4,755,891 13,216,551 - 165,477,494

(920,502) -

TOTAL 126,493,608 792,978 127,238,995 13,216,551 4,797,901 18,006,963 109,232,032 113,277,057

(47,591) (7,489)

TOTAL 52,200,437 78,487,104 130,687,541 - - - 130,687,541 52,200,437

GRAND TOTAL 178,694,045 79,280,082 257,926,536 13,216,551 4,797,901 18,006,963 239,919,573 -

(47,591) (7,489)

4. FIXED ASSETS

No. of Shares/

5. INVESTMENTS

(I) LONG TERM INVESTMENT

Unquoted

National Saving Certificate 30,000 30,000

(Lodged with Sales Tax Authorities)

Quoted

Ashiana Housing Ltd. (includes 465282 bonus shares) 10 651,395 2,639,549 651,395 2,639,549

IFGL Refractories Ltd 10 10,224 790,939 10,224 790,939

M/s Ashiana Manglam Developers - In Capital Account 130,087,923 94,065,163

(i) 21 nos single room Flats in Rangoli - II, at Bhiwadi 3,833,500 3,833,500

(ii) Roof rights, Ashiana Trade Centre, Jamshedpur 1,500,000 1,500,000

(iii) Shops, Ashiana Trade Centre, Jamshedpur 313,186 313,186

(iv) Common Facility Area at Utsav, Bhiwadi 5,880,600 5,880,600

(a) In Government Securities

(b) In fully paid up Equity Shares

(c) In a Partnership Firm

(d) In Immovable Properties

As at 31/03/2009

No. of Shares/

(ll) CURRENT INVESTMENT - Unquoted

In Mutual Funds

DSP Blackrock Bond Liquidity Fund - Regular - Growth 10 - - 7,682.51 117,320

Templeton Floating Rate Income Fund Short Term Plan Retail 10 - - 439,185.37 7,000,000

Aggregate amount of quoted investments 3,430,488 3,430,488

Aggregate amount of unquoted investments 141,645,209 112,739,769

Market Value of quoted investments 63,945,098 20,996,102

Repurchase value of units of Mutual Fund - 7,175,346

145,075,697 116,170,257

As at 31/03/2010

Rs. Rs.

As at 31/03/2009

6. DEFERRED TAX ASSET - Net

Deferred Tax Assets on :

On Employee Benefits 346,000 259,000

On unabsorbed losses 7,746,000 4,208,000

Less: Deferred Tax Liability on Fiscal allowance of fixed assets (4,638,000) (2,423,000)

7. INVENTORIES

(As taken. valued and certified by the Management)

Stores 196,934 225,897

Construction Material 8,923,940 5,738,000

8. SUNDRY DEBTORS

Other Debts 2,281,691 3,066,685

Cash-in-hand 158,753 138,143

Cheques-in-hand - 63,416

In Fixed Deposit Account (pledged Rs.40000/-) 1,777,997 3,835,021

10. LOANS & ADVANCES

Advances recoverable in cash or in kind or for

value to be received 15,091,484 11,435,573

Advances against purchase of properties - 20,000,000

Security Deposit 811,149 495,249

Taxation Advances and Refundables 6,093,073 4,748,206

Deposit from Customers 205,320 25,850,245

Temporary Overdraft due to over issue of Cheques 1,227,914 910,745

For Gratuity 1,118,391 838,683

For Taxation 1,645,000 1,737,000

3,454,000 2,044,000

9,208,109 6,069,479

2,479,758 6,994,608

4,702,960 6,951,186

21,995,706 36,679,028

CURRENT LIABILITIES

35,909,493 44,221,550

PROVISIONS

49,447,591 46,797,233

As at 31/03/2010

2009 - 2010

Rs. Rs.

12. MISCELLANEOUS EXPENDITURE

(To the extent not written off or adjusted)

Preoperative Expenses (pending allocation)

Add: incurred during the year

Directors' Remuneration 600,000 600,000

Rent and Furniture Hire Charges 287,000 240,000

Interest 187,897 842,664

Miscellaneous Expenses 42,489 282,027

13. SALES

Shops & Others - 531,800

Rooms, Restaurant, Banquets and other services 33,733,557 52,149,232

14. OTHER INCOME

Interest (Includes TDS Rs. 9,660/-; P.Y. Rs. 75,175/-)

On Fixed Deposits 84,345 295,425

Others 427,012 238,011

Dividend - 977,093

Rent 1,518,776 1,186,786

Fee and Subscription 3,323,538 2,107,000

Profit on sale of Investments 212,863 1,371,674

Share of profit from Partnership firm 16,022,760 18,623,556

Profit on transfer of business 500,000 -

Items relating to previous year 670,620 -

Miscellaneous Receipts 3,679,761 2,282,738

15. INCREASE / (DECREASE) IN STOCK

Closing Stock:

Shops and others - -

Less: Opening Stock :

Shops and others - 376,400

16. COST OF MATERIAL

Raw material consumed 7,302,551 5,754,469

Stores consumed 917,425 490,364

17. COST OF BORROWING

Interest :

To Holding Company - 40,438

To Others 1,214,151 493,048

Salary & Allowances 10,520,148 10,069,458

(includes Gratuity Provision Rs. 279,708/-; PY Rs. 457,431/-)

Contribution to Provident and other funds 68,845 59,927

Staff Welfare 1,085,421 677,609

5,621,396 4,481,038

2008 - 2009

33,733,557 52,681,032

26,860,568 27,397,190

(376,400)

8,219,976 6,244,833

1,214,151 533,486

11,674,414 10,806,994

As at 31/03/2009

2009 - 2010

Rs. Rs.

19. OTHER EXPENSES

Rent 2,031,640 1,953,637

Advertisement 2,741,519 1,237,017

Commission 9,485 4,000

Travelling & Conveyance 814,193 558,667

Telephone Expenses 789,254 727,368

Repairs and Maintenance

To Plant and Machinery 654,271 75,468

To Building 22,592 1,007,341

To Others 280,333 92,126

Directors' Sitting Fees 8,000 8,000

For internal Audit 218,170 14,000

Irrecoverable Balance written off 211,680 1,131,287

Items relating to previous year - 306,043

20. DIRECT TAXES

Provision for :-

Income Tax - 1,400,000

Deferred Tax (1,410,000) 2,823,000

10,841,743 10,028,028

(1,410,000) 4,363,000

2008 - 2009

(b) Capital work-in-progress is stated at cost.

(a) Stock of raw material and stores are carried at cost.

(b) Shops and others and Construction material is valued

at cost.

INVENTORIES :

INVESTMENTS:

of cost and market value. Long Term Investments which

have attained the stage of permanent diminution in their

value are revalued at their current value.

TAXES ON INCOME :

EMPLOYEE BENEFITS:

SCHEDULES TO THE ACCOUNTS SCHEDULES TO THE ACCOUNTS

As at 31/03/2010

2009 - 2010

Rs. Rs.

Add: incurred during the year

Rent and Furniture Hire Charges 287,000 240,000

Interest 187,897 842,664

13. SALES

Shops & Others - 531,800

Rooms, Restaurant, Banquets and other services 33,733,557 52,149,232

14. OTHER INCOME

Interest (Includes TDS Rs. 9,660/-; P.Y. Rs. 75,175/-)

On Fixed Deposits 84,345 295,425

Others 427,012 238,011

Dividend - 977,093

Rent 1,518,776 1,186,786

Fee and Subscription 3,323,538 2,107,000

Profit on sale of Investments 212,863 1,371,674

Share of profit from Partnership firm 16,022,760 18,623,556

Profit on transfer of business 500,000 -

Items relating to previous year 670,620 -

Miscellaneous Receipts 3,679,761 2,282,738

15. INCREASE / (DECREASE) IN STOCK

Closing Stock:

Shops and others - -

Less: Opening Stock :

Shops and others - 376,400

16. COST OF MATERIAL

Raw material consumed 7,302,551 5,754,469

Stores consumed 917,425 490,364

17. COST OF BORROWING

Interest :

To Holding Company - 40,438

To Others 1,214,151 493,048

Salary & Allowances 10,520,148 10,069,458

(includes Gratuity Provision Rs. 279,708/-; PY Rs. 457,431/-)

Contribution to Provident and other funds 68,845 59,927

Staff Welfare 1,085,421 677,609

5,621,396 4,481,038

2008 - 2009

33,733,557 52,681,032

26,860,568 27,397,190

(376,400)

8,219,976 6,244,833

1,214,151 533,486

11,674,414 10,806,994

As at 31/03/2009

2009 - 2010

Rs. Rs.

19. OTHER EXPENSES

Rent 2,031,640 1,953,637

Advertisement 2,741,519 1,237,017

Travelling & Conveyance 814,193 558,667

Telephone Expenses 789,254 727,368

Repairs and Maintenance

To Plant and Machinery 654,271 75,468

To Building 22,592 1,007,341

To Others 280,333 92,126

Directors' Sitting Fees 8,000 8,000

For internal Audit 218,170 14,000

Irrecoverable Balance written off 211,680 1,131,287

Items relating to previous year - 306,043

20. DIRECT TAXES

Provision for :-

Income Tax - 1,400,000

Deferred Tax (1,410,000) 2,823,000

10,841,743 10,028,028

(1,410,000) 4,363,000

2008 - 2009

(b) Capital work-in-progress is stated at cost.

(a) Stock of raw material and stores are carried at cost.

(b) Shops and others and Construction material is valued

at cost.

INVENTORIES :

INVESTMENTS:

of cost and market value. Long Term Investments which

have attained the stage of permanent diminution in their

value are revalued at their current value.

TAXES ON INCOME :

EMPLOYEE BENEFITS:

SCHEDULES TO THE ACCOUNTS SCHEDULES TO THE ACCOUNTS

2009 - 2010

(a) Amount used as numerator

in calculating basic and

diluted EPS :

Profit after tax 11,083,592 27,045,765

(b) Amount used as

denominator for calculating

EPS. (In Nos.)

For Basic EPS (Nos) :

Opening 9,240,050 9,240,050

Add: Potential Equity Shares

Debentures convertible to the

extent of amount paid up in

equity shares at par

Opening 9,400,000 9,400,000

Alloted on 31-03-2010

(20000000*50/100*

1/365) 27,397 -

For Diluted EPS

Rs. Rs.

18,667,447 18,640,050

2008 - 2009

(a) Sales, comprising of sale of rooms, food and

beverages, club and other allied services, is recognised

upon rendering of the services

(b) Project maintenance charges and other income is

basis.

(a) Preliminary Expenses are written off over a period of

five years.

(b) Pre-operative expenses including borrowing cost

incurred during construction period and expenditure on

prospecting new projects are allocated to the respective

fixed assets on completion.

SALES:

MISCELLANEOUS EXPENDITURE:

Contribution Plan,

recognised are charged off

2009 - 2010 2008 - 2009

actuarial valuation takes into account factors like inflation,

seniority, promotion and other relevant factors. The above

information is certified by the Actuary.

Related parties and transactions with them as specified

in the Accounting Standard 18 on “Related Parties

Disclosures” issued by ICAI has been identified and given

below on the basis of information available with the

company and the same has been relied upon by the

auditors.

(a) Enterprises that directly, or indirectly through one or more intermediaries, Control or are controlled by or are

2009 - 2010 2008 - 2009

Interest paid 12.05 0.40

Lease Rent paid - Net 3.48 0.48

Assets purchased - 58.08

Sales and maintenance

Charges 30.53 25.42

Loan received/(repaid) (net) (100.00) 100.00

Year end payable/

(Receivable) (1.52) 44.16

Sale of Business 5.00 Nil

Year end payable 216.46 Nil

(b) Associates and joint

ventures

Ashiana Manglam

Developers as above

voting power of the company that gives them control

or significant influence over the company, and relatives of

any such individual.

(d) Key management

personnel and their relatives

Director

(Remuneration) 6.00 6.00

(e) Enterprises over which

any person described in (c)

or (d) is able to exercise

significant influence : -

(f) Amount Written off in

respect of above parties -

9. (a) Previous year figures above are given in bracket.

(b) Previous period figures are rearranged/regrouped

2009-10

Gratuity Unfunded

2008-09

Actuarial (gain)/loss (0.77) 2.67

Benefits (paid) - -

and obligations

March 31, 2010 11.18 8.38

Actuarial (gain) / loss (0.77) 2.67

Net Cost 2.80 4.57

under common control with the company (including holding companies, subsidiaries and fellow Subsidiaries) :

Transactions

Defined Benefit Plan

Ashiana Manglam Developers

The particulars of Partnership business is given below:

# Capital (Rs.)Name of the Partner

Ashiana Retirement

Villages Ltd. - 65.00% 130,087,923

Rajkumari Garg 33.00% 11.55% 16,183,993

Sangeeta Agarwal 17.00% 5.95% (3,685,022)

Sanjay Gupta 33.00% 11.55% (9,615,577)

Vinod Goyal 17.00% 5.95% (7,175,447)

30% of pre-tax yearly profit upto

cumulative aggregate of 917.40 lakhs

Balance

ascertained.

under the said act.

The disclosures required under Accounting Standard-

15, Employees Benefits, notified in the Companies

# On the basis of audited Balance Sheet as at 31/03/2010.

Defined Contribution Plan

2009 - 2010

(a) Amount used as numerator

in calculating basic and

diluted EPS :

Profit after tax 11,083,592 27,045,765

(b) Amount used as

denominator for calculating

EPS. (In Nos.)

For Basic EPS (Nos) :

Opening 9,240,050 9,240,050

Add: Potential Equity Shares

Debentures convertible to the

extent of amount paid up in

equity shares at par

Opening 9,400,000 9,400,000

Alloted on 31-03-2010

(20000000*50/100*

1/365) 27,397 -

For Diluted EPS

Rs. Rs.

18,667,447 18,640,050

2008 - 2009

(a) Sales, comprising of sale of rooms, food and

(b) Project maintenance charges and other income is

basis.

(a) Preliminary Expenses are written off over a period of

five years.

(b) Pre-operative expenses including borrowing cost

incurred during construction period and expenditure on

prospecting new projects are allocated to the respective

fixed assets on completion.

SALES:

MISCELLANEOUS EXPENDITURE:

Contribution Plan,

recognised are charged off

2009 - 2010 2008 - 2009

actuarial valuation takes into account factors like inflation,

seniority, promotion and other relevant factors. The above

information is certified by the Actuary.

Related parties and transactions with them as specified

in the Accounting Standard 18 on “Related Parties

Disclosures” issued by ICAI has been identified and given

below on the basis of information available with the

company and the same has been relied upon by the

auditors.

(a) Enterprises that directly, or indirectly through one or more intermediaries, Control or are controlled by or are

2009 - 2010 2008 - 2009

Interest paid 12.05 0.40

Lease Rent paid - Net 3.48 0.48

Assets purchased - 58.08

Sales and maintenance

Charges 30.53 25.42

Loan received/(repaid) (net) (100.00) 100.00

Year end payable/

(Receivable) (1.52) 44.16

Sale of Business 5.00 Nil

Year end payable 216.46 Nil

(b) Associates and joint

ventures

Ashiana Manglam

Developers as above

voting power of the company that gives them control

or significant influence over the company, and relatives of

any such individual.

(d) Key management

personnel and their relatives

Director

(Remuneration) 6.00 6.00

(e) Enterprises over which

any person described in (c)

or (d) is able to exercise

significant influence : -

(f) Amount Written off in

respect of above parties -

9. (a) Previous year figures above are given in bracket.

(b) Previous period figures are rearranged/regrouped

2009-10

Gratuity Unfunded

2008-09

Actuarial (gain)/loss (0.77) 2.67

Benefits (paid) - -

and obligations

March 31, 2010 11.18 8.38

Actuarial (gain) / loss (0.77) 2.67

Net Cost 2.80 4.57

under common control with the company (including holding companies, subsidiaries and fellow Subsidiaries) :

Transactions

Defined Benefit Plan

Ashiana Manglam Developers

The particulars of Partnership business is given below:

# Capital (Rs.)Name of the Partner

Ashiana Retirement

Villages Ltd. - 65.00% 130,087,923

Rajkumari Garg 33.00% 11.55% 16,183,993

Sangeeta Agarwal 17.00% 5.95% (3,685,022)

Sanjay Gupta 33.00% 11.55% (9,615,577)

Vinod Goyal 17.00% 5.95% (7,175,447)

30% of pre-tax yearly profit upto

cumulative aggregate of 917.40 lakhs

Balance

ascertained.

under the said act.

The disclosures required under Accounting Standard-

15, Employees Benefits, notified in the Companies

# On the basis of audited Balance Sheet as at 31/03/2010.

Defined Contribution Plan

1. Registration Details Registration No. : U70101WB State Code : 21

2002PLC94479

Deployment of funds

Sources of Funds Paid-up Capital : 92,400 Reserves & Surplus : 70,756

Secured Loans : Nil Unsecured Loans : 194,629

Deposits : 25,225

Application of Funds Net Fixed Assets : 239,920 Investments : 145,076

Net Current Assets : (11,061) Misc. Expenditure : 5,621

Accumulated Losses : Nil Deferred Tax : 3,454

+/-- Profit/Loss Before Tax : 9,673 + -- Profit/Loss After Tax : +11,084

(ITC Code)

Hospitality

2009 - 2010 2008 - 2009

Rs. Rs.

Adjusted for :

Depreciation 4,797,901 4,755,891

Interest Income (84,345) (295,425)

Dividend - (977,093)

Interest Paid 1,214,151 533,486

(Profit) / Loss on sale of Fixed Assets - -

Adjusted for :

Trade and other receivables 20,543,039 (9,312,063)

Inventories (3,138,630) (4,211,659)

Trade Payables and other payable (10,015,729) 26,693,748

CASH GENERATED FROM OPERATIONS 6,754,356 28,600,420

'Net cash from Operating activities (A)

Purchase of Fixed Assets (80,420,440) (27,847,487)

Sale of Fixed Assets 40,102 -

Net change in Investments (12,669,817) (3,102,426)

Dividend - 977,093

Interest Income 84,345 295,425

Proceeds from long term and other borrowings 86,614,246 7,653,141

Interest Paid (1,214,151) (533,486)

NET INCREASE IN CASH AND CASH EQUIVALENTS (A + B + C) (2,248,226) 2,461,593

(634,324) 15,430,394

5,317,489 25,019,333

(92,965,810) (29,677,395)

85,400,095 7,119,655

Date: May 29, 2010 Date: May 29, 2010

Place: Gurgaon Place: New Delhi Date: May 29, 2010 Date: May 29, 2010

1. Registration Details Registration No. : U70101WB State Code : 21

2002PLC94479

Deployment of funds

Sources of Funds Paid-up Capital : 92,400 Reserves & Surplus : 70,756

Secured Loans : Nil Unsecured Loans : 194,629

Deposits : 25,225

Net Current Assets : (11,061) Misc. Expenditure : 5,621

Accumulated Losses : Nil Deferred Tax : 3,454

+/-- Profit/Loss Before Tax : 9,673 + -- Profit/Loss After Tax : +11,084

(ITC Code)

Hospitality

2009 - 2010 2008 - 2009

Rs. Rs.

Adjusted for :

Depreciation 4,797,901 4,755,891

Interest Income (84,345) (295,425)

Dividend - (977,093)

Interest Paid 1,214,151 533,486

(Profit) / Loss on sale of Fixed Assets - -

Adjusted for :

Inventories (3,138,630) (4,211,659)

Trade Payables and other payable (10,015,729) 26,693,748

'Net cash from Operating activities (A)

Sale of Fixed Assets 40,102 -

Net change in Investments (12,669,817) (3,102,426)

Dividend - 977,093

Interest Income 84,345 295,425

Proceeds from long term and other borrowings 86,614,246 7,653,141

Interest Paid (1,214,151) (533,486)

NET INCREASE IN CASH AND CASH EQUIVALENTS (A + B + C) (2,248,226) 2,461,593

(634,324) 15,430,394

5,317,489 25,019,333

(92,965,810) (29,677,395)

85,400,095 7,119,655

Date: May 29, 2010 Date: May 29, 2010

A ASHIANA HOUSING

LIMITED - CONSOLIDATED

Vatika Marketing Limited

A UDITOR’S REPORT

AUDITORS' REPORT TO THE BOARD OF DIRECTORS OF

ASHIANA HOUSING LIMITED ON THE CONSOLIDATED

FINANCIAL STATEMENTS OF M/S ASHIANA HOUSING

LIMITED AND ITS SUBSIDIARIES VATIKA MARKETING

LIMITED AND ASHIANA RETIREMENT VILLAGES LIMITED

We have audited the attached consolidated Balance

Sheet of Ashiana Housing Limited and its subsidiaries

Vatika Marketing Limited and Ashiana Retirement

Villages Limited as at 31st March, 2010, the

consolidated 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

on our audit. We have conducted our audit in

accordance with auditing standards generally accepted

in India. These standards require that we plan and

perform the audit to obtain reasonable assurance about

whether the financial statements are free from material

misstatement. An audit includes examining, on a test

basis, evidence supporting the amounts and disclosures

in the financial statements. An audit also includes

assessing the accounting principles used and significant

estimates made by the management, as well as

evaluating the overall financial statement presentation.

We believe that our audit provides a reasonable basis

for our opinion.

We report that the consolidated financial statements

have been prepared by the company in accordance with

the requirements of Accounting Standard (AS) 21,

consolidated financial statements, issued by The Institute

of Chartered Accountants of India and on the basis of

separate audited financial statements of Ashiana

housing Limited and its subsidiaries included in the

consolidated financial statements.

On the basis of information and explanations given to us

and on the consideration of separate audit reports on

individual audited financial statements of Ashiana

Housing Limited and its aforesaid subsidiaries, the said

financial statements give a true and fair view:

(i) in so far as it relates to the Consolidated Balance

Sheet, of the state of affairs of the Company as at 31st

March, 2010, and,

(ii) in so far as it relates to the Consolidated Profit &

Loss Account, of the Profit for the year ended on that

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

the cash flow for the year ended on that date.

(VINIT BAGARIA)

Partner

Place: Gurgaon

Date: May 29, 2010

A ASHIANA HOUSING

LIMITED - CONSOLIDATED

Vatika Marketing Limited

A UDITOR’S REPORT

AUDITORS' REPORT TO THE BOARD OF DIRECTORS OF

ASHIANA HOUSING LIMITED ON THE CONSOLIDATED

FINANCIAL STATEMENTS OF M/S ASHIANA HOUSING

LIMITED AND ITS SUBSIDIARIES VATIKA MARKETING

LIMITED AND ASHIANA RETIREMENT VILLAGES LIMITED

We have audited the attached consolidated Balance

Sheet of Ashiana Housing Limited and its subsidiaries

Vatika Marketing Limited and Ashiana Retirement

Villages Limited as at 31st March, 2010, the

consolidated 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

on our audit. We have conducted our audit in

accordance with auditing standards generally accepted

in India. These standards require that we plan and

perform the audit to obtain reasonable assurance about

whether the financial statements are free from material

misstatement. An audit includes examining, on a test

basis, evidence supporting the amounts and disclosures

in the financial statements. An audit also includes

assessing the accounting principles used and significant

estimates made by the management, as well as

evaluating the overall financial statement presentation.

We believe that our audit provides a reasonable basis

for our opinion.

We report that the consolidated financial statements

have been prepared by the company in accordance with

the requirements of Accounting Standard (AS) 21,

consolidated financial statements, issued by The Institute

of Chartered Accountants of India and on the basis of

separate audited financial statements of Ashiana

housing Limited and its subsidiaries included in the

consolidated financial statements.

On the basis of information and explanations given to us

and on the consideration of separate audit reports on

individual audited financial statements of Ashiana

Housing Limited and its aforesaid subsidiaries, the said

financial statements give a true and fair view:

(i) in so far as it relates to the Consolidated Balance

Sheet, of the state of affairs of the Company as at 31st

March, 2010, and,

(ii) in so far as it relates to the Consolidated Profit &

Loss Account, of the Profit for the year ended on that

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

the cash flow for the year ended on that date.

(VINIT BAGARIA)

Partner

Place: Gurgaon

Date: May 29, 2010

CONSOLIDATED BALANCE SHEET OF

ASHIANA HOUSING LIMITED & ITS

SUBSIDIARIES AS AT MARCH 31, 2010 CONSOLIDATED PROFIT & LOSS ACCOUNT

OF ASHIANA HOUSING LIMITED & ITS

SUBSIDIARIES FOR THE YEAR ENDED ON

MARCH 31, 2010

92 Ashiana Housing Ltd. - Consolidated 93Annual Report 2009-2010

Rs. Rs. Rs. Rs.

SOURCES OF FUNDS

Share Capital 1 180,844,550 180,844,550

Reserves & Surplus 2 1,117,049,698 781,958,856

1,297,894,248 962,803,406

Loan Funds:

Secured Loans 3 77,784,239 7,123,532

Unsecured Loans 4 629,065 4,014,819

78,413,304 11,138,351

Security Deposit from Tree House 25,224,481 27,207,861

Members

Fixed Assets: 6

(a) Gross Block 343,414,586 321,192,923

(c) Net Block 291,021,792 282,216,371

421,484,475 334,089,250

Investments 498,543,118 406,837,984

Current Assets, Loans & Advances

Inventories 7 685,473,165 583,914,069

Sundry Debtors 8 17,263,946 15,395,650

Cash & Bank balances 9 160,612,041 130,055,195

Loans & Advances 10 187,476,219 187,730,396

1,050,825,371 917,095,310

BALANCE SHEET ABSTRACT AND COMPANY'S

1,413,023,033 1,006,444,618

As at 31/03/2009 Schedules 2009-2010 2008-2009

Rs. Rs.

INCOME

Sales 13 1,085,955,526 878,925,621

Project Maintenance Charges 14

Other Income 15

EXPENDITURE

Direct Costs:

Purchases 16 20,934,654 82,541,437

Cost of Material 8,219,976 6,244,833

Ongoing Project Expeses Adjustment 329,633,670 393,652,944

Decrease/(Increase) in Stock 18 (91,086,308) (174,167,424)

Cost of Borrowings 20 10,500,425 1,781,062

Depreciation 15,006,917 14,854,821

Other expenses 21 111,914,238 98,698,554

Profit after tax

Appropriations:

Tax on Proposed Dividend 4,667,687 -

Earning per share

39,567,174 27,815,436

84,768,577 133,362,991

1,210,291,277 1,040,104,048

549,254,293 529,863,344

766,625,325 719,293,637

367,696,204 283,988,100

386,150,340 290,554,136

31,378,878 18,454,136

For B. CHHAWCHHARIA & CO. For and on behalf of the BoardChartered Accountants

VINIT BAGARIA Bhagwan Kumar Manojit Sengupta Vishal Gupta Varun Gupta Partner Company Secretary General Manager (F&A) Managing Director Director

CONSOLIDATED BALANCE SHEET OF

ASHIANA HOUSING LIMITED & ITS

SUBSIDIARIES AS AT MARCH 31, 2010 CONSOLIDATED PROFIT & LOSS ACCOUNT

OF ASHIANA HOUSING LIMITED & ITS

SUBSIDIARIES FOR THE YEAR ENDED ON

MARCH 31, 2010

Rs. Rs. Rs. Rs.

SOURCES OF FUNDS

Share Capital 1 180,844,550 180,844,550

Reserves & Surplus 2 1,117,049,698 781,958,856

1,297,894,248 962,803,406

Loan Funds:

Secured Loans 3 77,784,239 7,123,532

Unsecured Loans 4 629,065 4,014,819

78,413,304 11,138,351

Security Deposit from Tree House 25,224,481 27,207,861

Members

Fixed Assets: 6

(a) Gross Block 343,414,586 321,192,923

(c) Net Block 291,021,792 282,216,371

421,484,475 334,089,250

Investments 498,543,118 406,837,984

Current Assets, Loans & Advances

Inventories 7 685,473,165 583,914,069

Sundry Debtors 8 17,263,946 15,395,650

Cash & Bank balances 9 160,612,041 130,055,195

Loans & Advances 10 187,476,219 187,730,396

1,050,825,371 917,095,310

BALANCE SHEET ABSTRACT AND COMPANY'S

1,413,023,033 1,006,444,618

As at 31/03/2009 Schedules 2009-2010 2008-2009

Rs. Rs.

INCOME

Sales 13 1,085,955,526 878,925,621

Project Maintenance Charges 14

Other Income 15

EXPENDITURE

Direct Costs:

Purchases 16 20,934,654 82,541,437

Cost of Material 8,219,976 6,244,833

Ongoing Project Expeses Adjustment 329,633,670 393,652,944

Decrease/(Increase) in Stock 18 (91,086,308) (174,167,424)

Cost of Borrowings 20 10,500,425 1,781,062

Depreciation 15,006,917 14,854,821

Other expenses 21 111,914,238 98,698,554

Profit after tax

Appropriations:

Tax on Proposed Dividend 4,667,687 -

Earning per share

39,567,174 27,815,436

84,768,577 133,362,991

1,210,291,277 1,040,104,048

549,254,293 529,863,344

766,625,325 719,293,637

367,696,204 283,988,100

386,150,340 290,554,136

31,378,878 18,454,136

Rs. Rs.

1. SHARE CAPITAL

Authorised:

Less: 651395 Equity shares of Rs. 10 each on Consolidation 6,513,950 6,513,950

Capital Reserves 1,518,000 1,518,000

Capital Reserve (on consolidation) 1,304,220 1,138,120 General Reserves:

Add: Transfer from Profit & Loss A/c 322,000,000 272,100,000

3. SECURED LOANS

(i) Construction Loan - From HDFC limited* Secured by way of (I) first 67,468,238 -

exclusive mortgage on land in Ashiana Aangan Project alongwith

construction thereon, both present and future and (ii) assignment of

receivable from the said project.

(ii) Vehicle Loan from*

Tata Capital Ltd 1,649,666 2,866,166

*Includes Rs. 72,122,431/- due within 12 months

4. UNSECURED LOANS

- Others 629,065 4,014,819

Debenture Holder - From Holding Company - -

629,065 4,014,819

Unabsorbed losses and provisions 7,768,000 8,668,000

180,844,550 180,844,550

1,068,448,600 746,448,600

1,117,049,698 781,958,856

77,784,239 7,123,532

11,491,000 5,295,000

01/04/2009Additions/

(Deductions)

31/03/2010

31/03/2009For the Year Up to

31/03/2010

31/03/2009

GOODWILL 100,000 - 100,000 - - - 100,000 100,000

GOODWILL ON 810,589 - 810,589 - - - 810,589 810,589

CONSOLIDATION

BUILDING 138,932,057 137,108,037 8,244,624 3,803,663 11,758,877 125,349,160 130,687,433

(1,824,020) (289,410)

PLANT & MACHINERY 106,659,430 13,123,478 119,772,408 11,224,482 5,275,441 16,498,972 103,273,436 95,434,948

(10,500) (951)

FURNITURE & FIXTURES 19,010,713 2,992,590 21,899,402 7,001,942 1,026,885 7,994,268 13,905,134 12,008,771

(103,901) (34,559)

OFFICE FACILITY AND 27,789,204 3,723,525 31,471,711 7,121,205 2,632,082 9,740,222 21,731,489 20,667,999

EQUIPMENTS (41,018) (13,065)

VEHICLES 18,088,183 9,076,333 21,970,198 3,508,346 1,808,901 4,064,557 17,905,641 14,579,837

(5,194,318) (1,252,690)

CAPITAL WORK IN PROGRESS 51,872,879 78,589,804 130,462,683 - - - 130,462,683 51,872,879

PREVIOUS YEAR FIGURES 304,855,637 105,440,246 373,065,802 26,502,328 14,854,821 38,976,552 334,089,250 279,491,429

(37,230,081) (2,380,597)

TOTAL 321,192,923 29,395,420 343,414,586 38,976,552 15,006,917 52,392,794 291,021,792 282,216,371

(7,173,757) (1,590,675)

GRAND TOTAL 373,065,802 107,985,224 473,877,269 38,976,552 15,006,917 52,392,794 421,484,475 334,089,250

(7,173,757) (1,590,675)

6. FIXED ASSETS

SCHEDULE TO THE ACCOUNTS

Rs. Rs.

7. INVENTORIES

Stores 196,934 225,897

Maintenance Material 216,817 571,319

Leasehold Land 175,182,138 180,163,307

Freehold land 52,254,522 37,395,080

Work-in-progress 286,644,761 233,443,282

Construction/ Maintenance materials 54,194,182 45,704,881

8. SUNDRY DEBTORS

Due for more than six months: 6,091,224 8,566,477

Other Debts 11,172,722 6,829,173

685,473,165 583,914,069

17,263,946 15,395,650

Rs. Rs.

1. SHARE CAPITAL

Authorised:

Less: 651395 Equity shares of Rs. 10 each on Consolidation 6,513,950 6,513,950

Capital Reserves 1,518,000 1,518,000

Capital Reserve (on consolidation) 1,304,220 1,138,120 General Reserves:

Add: Transfer from Profit & Loss A/c 322,000,000 272,100,000

3. SECURED LOANS

(i) Construction Loan - From HDFC limited* Secured by way of (I) first 67,468,238 -

exclusive mortgage on land in Ashiana Aangan Project alongwith

construction thereon, both present and future and (ii) assignment of

receivable from the said project.

(ii) Vehicle Loan from*

Tata Capital Ltd 1,649,666 2,866,166

*Includes Rs. 72,122,431/- due within 12 months

4. UNSECURED LOANS

- Others 629,065 4,014,819

Debenture Holder - From Holding Company - -

629,065 4,014,819

Unabsorbed losses and provisions 7,768,000 8,668,000

180,844,550 180,844,550

1,068,448,600 746,448,600

1,117,049,698 781,958,856

77,784,239 7,123,532

11,491,000 5,295,000

01/04/2009Additions/

(Deductions)

31/03/2010

31/03/2009For the Year Up to

31/03/2010

31/03/2009

GOODWILL 100,000 - 100,000 - - - 100,000 100,000

GOODWILL ON 810,589 - 810,589 - - - 810,589 810,589

CONSOLIDATION

BUILDING 138,932,057 137,108,037 8,244,624 3,803,663 11,758,877 125,349,160 130,687,433

(1,824,020) (289,410)

PLANT & MACHINERY 106,659,430 13,123,478 119,772,408 11,224,482 5,275,441 16,498,972 103,273,436 95,434,948

(10,500) (951)

FURNITURE & FIXTURES 19,010,713 2,992,590 21,899,402 7,001,942 1,026,885 7,994,268 13,905,134 12,008,771

(103,901) (34,559)

OFFICE FACILITY AND 27,789,204 3,723,525 31,471,711 7,121,205 2,632,082 9,740,222 21,731,489 20,667,999

EQUIPMENTS (41,018) (13,065)

VEHICLES 18,088,183 9,076,333 21,970,198 3,508,346 1,808,901 4,064,557 17,905,641 14,579,837

(5,194,318) (1,252,690)

CAPITAL WORK IN PROGRESS 51,872,879 78,589,804 130,462,683 - - - 130,462,683 51,872,879

PREVIOUS YEAR FIGURES 304,855,637 105,440,246 373,065,802 26,502,328 14,854,821 38,976,552 334,089,250 279,491,429

(37,230,081) (2,380,597)

TOTAL 321,192,923 29,395,420 343,414,586 38,976,552 15,006,917 52,392,794 291,021,792 282,216,371

(7,173,757) (1,590,675)

GRAND TOTAL 373,065,802 107,985,224 473,877,269 38,976,552 15,006,917 52,392,794 421,484,475 334,089,250

(7,173,757) (1,590,675)

6. FIXED ASSETS

SCHEDULE TO THE ACCOUNTS

Rs. Rs.

7. INVENTORIES

Stores 196,934 225,897

Maintenance Material 216,817 571,319

Leasehold Land 175,182,138 180,163,307

Freehold land 52,254,522 37,395,080

Work-in-progress 286,644,761 233,443,282

Construction/ Maintenance materials 54,194,182 45,704,881

8. SUNDRY DEBTORS

Due for more than six months: 6,091,224 8,566,477

Other Debts 11,172,722 6,829,173

685,473,165 583,914,069

17,263,946 15,395,650

Rs. Rs.

Cash-in-hand 542,692 535,973

Cheques/Drafts-in-hand 485,981 679,055

With Scheduled Banks :

In Unclamied Dividend Accounts 3,790,041 3,834,698

In Fixed Deposit Accounts 104,975,828 102,553,889

(Unsecured, considered good, unless otherwise stated)

To Others - 1,575

Advance against land etc. 14,632,416 65,000,000

Deposits 4,882,190 4,711,654

192,033,347 413,942,130

Temprory overdraft due to over issue of cheques 1,227,914 910,745

(B) PROVISIONS

For Taxation 152,853,000 95,423,000

For Tax on Proposed Dividend 4,667,687 -

For Gratuity 6,602,982 5,699,010

Furniture Hire Charges 287,000 240,000

Interest 187,897 842,664

13. SALES

(c) Rooms, Restaurant, Banquets and other services 32,194,243 51,346,835

160,612,041 130,055,195

187,476,219 187,730,396

371,223,884 554,936,954

563,451,328 656,058,964

5,621,397 4,481,038

1,085,955,526 878,925,621

39,567,174 27,815,436

As at 31/03/2009

2008 - 2009Rs.

2009 - 2010Rs.

Rs. Rs.

15. OTHER INCOME

Interest 13,239,208 12,063,791

Income from Long Term Investment:

Rent 1,513,226 246,450

Dividend 443,299 1,574,026

Commission 3,868,733 4,016,243

Fee & Subscription 3,323,538 2,107,000

Income from Revenue Sharing arrangements - 175,399

Rent and hire charges 631,279 1,432,024

Profit on sale of Fixed Assets 4,244,228

Share of profit from partnership 41,778,582 37,562,984

16. PURCHASES

Land 18,834,654 76,949,600

Wages & Labour charges 141,490,420 115,752,845

Power & Fuel 6,787,956 5,554,148

Less: Ongoing Project Adjustment

18. DECREASE/(INCREASE) IN STOCK

Opening Stock:

Leasehold land * 173,413,931 107,399,975

Shop - 376,400

Freehold land * 39,210,637 42,992,147

Work-in-progress 233,443,282 68,360,013

539,691,689 363,138,966

Leasehold land 175,182,138 180,163,307

Freehold land 52,254,522 37,395,080

Work-in-progress 286,644,761 233,443,282

630,777,997 537,306,390

* Net of ongoing project adjustment amounting to Rs.2385299/-; P.Y.

Rs.16893927/-

Salary, Wages, bonus and allowances 73,040,539 64,416,277

Interest - On Construction Loans 9,269,683 - - Others 1,230,742 1,781,062

84,768,577 133,362,991

20,934,654 82,541,437

576,553,308 567,551,231

332,018,969 376,759,017

244,534,339 190,792,214

(91,086,308) (174,167,424)

79,949,452 74,095,856

10,500,425 1,781,062

2008 - 2009

Rs. Rs.

Cash-in-hand 542,692 535,973

Cheques/Drafts-in-hand 485,981 679,055

With Scheduled Banks :

In Unclamied Dividend Accounts 3,790,041 3,834,698

In Fixed Deposit Accounts 104,975,828 102,553,889

(Unsecured, considered good, unless otherwise stated)

To Others - 1,575

Advance against land etc. 14,632,416 65,000,000

Deposits 4,882,190 4,711,654

192,033,347 413,942,130

Temprory overdraft due to over issue of cheques 1,227,914 910,745

(B) PROVISIONS

For Taxation 152,853,000 95,423,000

For Tax on Proposed Dividend 4,667,687 -

For Gratuity 6,602,982 5,699,010

Furniture Hire Charges 287,000 240,000

Interest 187,897 842,664

13. SALES

(c) Rooms, Restaurant, Banquets and other services 32,194,243 51,346,835

160,612,041 130,055,195

187,476,219 187,730,396

371,223,884 554,936,954

563,451,328 656,058,964

5,621,397 4,481,038

1,085,955,526 878,925,621

39,567,174 27,815,436

As at 31/03/2009

2008 - 2009Rs.

2009 - 2010Rs.

Rs. Rs.

15. OTHER INCOME

Interest 13,239,208 12,063,791

Income from Long Term Investment:

Rent 1,513,226 246,450

Dividend 443,299 1,574,026

Commission 3,868,733 4,016,243

Fee & Subscription 3,323,538 2,107,000

Income from Revenue Sharing arrangements - 175,399

Rent and hire charges 631,279 1,432,024

Profit on sale of Fixed Assets 4,244,228

Share of profit from partnership 41,778,582 37,562,984

16. PURCHASES

Land 18,834,654 76,949,600

Wages & Labour charges 141,490,420 115,752,845

Power & Fuel 6,787,956 5,554,148

Less: Ongoing Project Adjustment

18. DECREASE/(INCREASE) IN STOCK

Opening Stock:

Leasehold land * 173,413,931 107,399,975

Shop - 376,400

Freehold land * 39,210,637 42,992,147

Work-in-progress 233,443,282 68,360,013

539,691,689 363,138,966

Leasehold land 175,182,138 180,163,307

Freehold land 52,254,522 37,395,080

Work-in-progress 286,644,761 233,443,282

630,777,997 537,306,390

* Net of ongoing project adjustment amounting to Rs.2385299/-; P.Y.

Rs.16893927/-

Salary, Wages, bonus and allowances 73,040,539 64,416,277

Interest - On Construction Loans 9,269,683 - - Others 1,230,742 1,781,062

84,768,577 133,362,991

20,934,654 82,541,437

576,553,308 567,551,231

332,018,969 376,759,017

244,534,339 190,792,214

(91,086,308) (174,167,424)

79,949,452 74,095,856

10,500,425 1,781,062

2008 - 2009

Rs. Rs.

21. OTHER EXPENSES

Rent 8,217,025 6,139,685

Power & Fuel 6,072,804 5,284,658

Insurance 402,492 536,483

To Machineries 1,625,553 115,936

To Building 1,651,541 3,642,943

To Others 2,851,873 286,118

For Tax Audit 215,450 168,420

Irrecoverable Balances Written off 459,916 1,398,221

Items relating to previous year (Net) 11,109 2,301,571

Fixed Assets Written Off 25,998 425,895

22. PROVISION FOR TAXATION

Income Tax 69,570,000 32,790,000

Deferred Tax 6,196,000 2,185,000

Wealth Tax 202,000 57,000

111,914,238 98,698,554

75,969,748 36,822,311

2008 - 2009

Raw Materials, Construction Materials, Maintenance

Materials and Stores: At Lower of cost and net realizable

value.However, materials and other items are not written

INVENTORIES :

down below cost if the constructed units in which they are

used are expected to be sold at or above cost. Cost is

determined on FIFO basis.

Leasehold and Freehold Land, Unso ld Comp le ted

Construction and Work-in-Progress At Lower of cost and

net realizable value. Cost includes direct materials,

labour and construction overheads.

customers.

accounting and represents value of units contracted to

be sold to the extent of actual work done against total

REAL ESTATE PROJECTS AND SALES

(c) Sales, comprising of sale of rooms, food and

(d) Project maintenance charges and other income is

(e) Interest on delayed payments and other charges are

not recognised.

accounts.

OTHER INCOME

TAXES ON INCOME :

INVESTMENTS :

EMPLOYEE BENEFITS

estimates/ exemptions to be made that affect the

materialised.

Accounting Standard -28 is recognised whenever

value in use , whichever is higher.

(a) Contested demand of Rs. Rs.

Income tax and penalty 6.90 lakhs (6.90 lakhs)

ESIC 4.28 lakhs (4.28 lakhs)

Additional Lease Rent Nil (34.73 lakhs)

Provident Fund Nil (185.26 lakhs)

Cess - Sonari land 19.43 lakhs (9.72 lakhs)

USE OF ESTIMATES

(b) Show cause notice received for service tax

Rs. Nil lakhs (Rs. 267.93 lakhs)

(c) Contested claim of the Government of Rajasthan for

refund of State Capital Subsidy including interest of

Rs. 50.25 lakhs (Rs. 48 lakhs)

(d) Corporate Guarantee in favour of Housing

Development Finance Corporation Ltd. against

borrowing of Rs. 1.61 Cr (Rs.Nil)

Estimated amount of contract remaining to be executed

on capital account and not provided for amounts (net of

advance) to Rs. 8.74 lakhs (Rs. 5.20 lakhs)

Paid up Share Capital of the Company includes

1993100 Equity Shares, allotted pursuant to Schemes of

Amalgamation without payment being received in cash

and 13382750 Equity Shares, alloted as fully paid up

Bonus Shares, by capitasation of General Reserves.

ascertained.

Rs. Rs.

21. OTHER EXPENSES

Rent 8,217,025 6,139,685

Power & Fuel 6,072,804 5,284,658

Insurance 402,492 536,483

To Machineries 1,625,553 115,936

To Building 1,651,541 3,642,943

To Others 2,851,873 286,118

For Tax Audit 215,450 168,420

Irrecoverable Balances Written off 459,916 1,398,221

Items relating to previous year (Net) 11,109 2,301,571

Fixed Assets Written Off 25,998 425,895

22. PROVISION FOR TAXATION

Income Tax 69,570,000 32,790,000

Deferred Tax 6,196,000 2,185,000

Wealth Tax 202,000 57,000

111,914,238 98,698,554

75,969,748 36,822,311

2008 - 2009

Raw Materials, Construction Materials, Maintenance

Materials and Stores: At Lower of cost and net realizable

value.However, materials and other items are not written

INVENTORIES :

down below cost if the constructed units in which they are

used are expected to be sold at or above cost. Cost is

determined on FIFO basis.

Leasehold and Freehold Land, Unso ld Comp le ted

Construction and Work-in-Progress At Lower of cost and

net realizable value. Cost includes direct materials,

labour and construction overheads.

customers.

accounting and represents value of units contracted to

be sold to the extent of actual work done against total

REAL ESTATE PROJECTS AND SALES

(c) Sales, comprising of sale of rooms, food and

(d) Project maintenance charges and other income is

(e) Interest on delayed payments and other charges are

not recognised.

accounts.

OTHER INCOME

TAXES ON INCOME :

INVESTMENTS :

EMPLOYEE BENEFITS

estimates/ exemptions to be made that affect the

materialised.

Accounting Standard -28 is recognised whenever

value in use , whichever is higher.

(a) Contested demand of Rs. Rs.

Income tax and penalty 6.90 lakhs (6.90 lakhs)

ESIC 4.28 lakhs (4.28 lakhs)

Additional Lease Rent Nil (34.73 lakhs)

Provident Fund Nil (185.26 lakhs)

Cess - Sonari land 19.43 lakhs (9.72 lakhs)

USE OF ESTIMATES

(b) Show cause notice received for service tax

Rs. Nil lakhs (Rs. 267.93 lakhs)

(c) Contested claim of the Government of Rajasthan for

refund of State Capital Subsidy including interest of

Rs. 50.25 lakhs (Rs. 48 lakhs)

(d) Corporate Guarantee in favour of Housing

Development Finance Corporation Ltd. against

borrowing of Rs. 1.61 Cr (Rs.Nil)

Estimated amount of contract remaining to be executed

on capital account and not provided for amounts (net of

advance) to Rs. 8.74 lakhs (Rs. 5.20 lakhs)

Paid up Share Capital of the Company includes

1993100 Equity Shares, allotted pursuant to Schemes of

Amalgamation without payment being received in cash

and 13382750 Equity Shares, alloted as fully paid up

Bonus Shares, by capitasation of General Reserves.

ascertained.

under the said Act

6. Expenditure In Foreign Currency:

S. No. (Rs.)(Rs.)

1. Travelling 13,86,446/- (14,31,018/-)

The earning per share has been calculated as

specified in Accounting Standard 20 on “Earnings Per

Share” issued by ICAI and related disclosures are as

below :

2009-2010 2008-2009

a. Amount used as numerator in

Profit after tax 3,676.96 2,839.88

b. Weighted average number of

equity shares used as the

EPS (Nos. in lacs).

180.84 180.84

deduction u/s 80IB (10) is claimed by the company after

(Rs.)(Rs.)

Less:- Sales Real Estate- ongoing projects 694,275,913 -

Less: Ongoing project expenses adjusted 329,633,671 364,642,242

79,023,710

Add:- As per Income Tax Act:

Sales Real Estate-ongoing projects

completed (upon delivery of

physical possession) 671,432,585 -

Less: Cost of Sales 384,913,197 286,519,388

Net Profit for Income Tax Purpose 365,543,098

The Consolidated Financial Statements have been

prepared in accordance with Accounting Standard 21

(AS 21) - "Consolidated Financial Statements" issued by

The Institute of Chartered Accountants of India. The

subsidiaries (which along with Ashiana Housing Ltd.,

the parent, constitute the Group) considered in the

preparation of these consolidated financial statements

Country ofIncorporation

Percentage of voting power as at March 31, 2010

Ashiana Retirement

Villages Limited India 100% 100%

Vatika Marketing Limited India 100% 100%

brackets.

(b) P r e v i o u s ye a r f i g u re h a ve b e e n

Deployment of funds

Sources of Funds Paid-up Capital : 180,845 Reserves & Surplus : 1,117,050

Secured Loans : 77,784 Unsecured Loans : 629

Deferred Tax Liability : 11,491 Others : 25,224

Net Current Assets : 487,374 Misc. Expenditure : 5621

+/-- Profit/Loss Before Tax : 443,666 + -- Profit/Loss After Tax : 367,696

(ITC Code)

Date: May 29, 2010 Date: May 29, 2010

under the said Act

6. Expenditure In Foreign Currency:

S. No. (Rs.)(Rs.)

1. Travelling 13,86,446/- (14,31,018/-)

The earning per share has been calculated as

specified in Accounting Standard 20 on “Earnings Per

Share” issued by ICAI and related disclosures are as

below :

2009-2010 2008-2009

a. Amount used as numerator in

Profit after tax 3,676.96 2,839.88

b. Weighted average number of

equity shares used as the

EPS (Nos. in lacs).

180.84 180.84

deduction u/s 80IB (10) is claimed by the company after

(Rs.)(Rs.)

Less:- Sales Real Estate- ongoing projects 694,275,913 -

Less: Ongoing project expenses adjusted 329,633,671 364,642,242

79,023,710

Add:- As per Income Tax Act:

Sales Real Estate-ongoing projects

completed (upon delivery of

physical possession) 671,432,585 -

Less: Cost of Sales 384,913,197 286,519,388

Net Profit for Income Tax Purpose 365,543,098

The Consolidated Financial Statements have been

prepared in accordance with Accounting Standard 21

(AS 21) - "Consolidated Financial Statements" issued by

The Institute of Chartered Accountants of India. The

subsidiaries (which along with Ashiana Housing Ltd.,

the parent, constitute the Group) considered in the

preparation of these consolidated financial statements

Country ofIncorporation

Ashiana Retirement

Villages Limited India 100% 100%

Vatika Marketing Limited India 100% 100%

brackets.

(b) P r e v i o u s ye a r f i g u re h a ve b e e n

Deployment of funds

Sources of Funds Paid-up Capital : 180,845 Reserves & Surplus : 1,117,050

Secured Loans : 77,784 Unsecured Loans : 629

Deferred Tax Liability : 11,491 Others : 25,224

Net Current Assets : 487,374 Misc. Expenditure : 5621

+/-- Profit/Loss Before Tax : 443,666 + -- Profit/Loss After Tax : 367,696

(ITC Code)

Date: May 29, 2010 Date: May 29, 2010

2009 - 2010 2008 - 2009Rs. Rs.

Net Profit before tax and extraordinary items 443,665,952 320,810,411 Adjusted for :

Depreciation 15,006,917 14,854,821

Interest Income (13,239,208) (10,282,729)

Income from Long Term Investment (48,207,247) (104,142,022)

Provision for Dimunition in value of Investment (3,425,886) 3,491,521

Capital reserve on consolidation 166,100 1,138,120

Interest Paid 10,500,425 1,781,062

Fixed assets written off 25,998 425,895

(Profit) / Loss on sale of Fixed Assets (4,244,228) 389,473

OPERATING PROFIT BEFORE WORKING CAPITAL CHANGES Adjusted for :

Inventories (101,559,096) (167,949,034)

Trade Payables and advances from customers (184,747,821) 603,578,411

Sale of Fixed Assets 9,801,312 31,352,493

Net Purchase/ sale of Investments (42,028,526) 149,198,950

Interest Income 13,239,208 10,282,729

Other Income from Long Term Investments 1,956,525 1,820,476

Proceeds from long term and other borrowings 67,274,953 (9,544,613)

Interest Paid (10,500,425) (1,781,062)

Dividend paid (44,657) (26,678,544)

CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR 160,612,041 130,055,195 01. Proceeds from long term and other borrowings are shown net of repayment. 02. Cash and Cash equivalents represent cash and bank balances only.

400,248,823 228,466,552

99,984,039 1,336,297

(126,157,064) 89,053,765

56,729,871 (38,004,219)

102 Ashiana Housing Ltd. - Consolidated

Date: May 29, 2010 Date: May 29, 2010

Registered Office: 5F, Everest, 46/C, Chowringhee Road, Kolkata – 700 071

PROXY FORM

ATTENDANCE SLIP

TO BE HANDED OVER AT THE ENTRANCE OF THE MEETING HALL

NOTE: The copy of the Annual Report may please be brought to the meeting hall.

I/We………………………………………………………………………………………………………………………………………

of……………………………………………………..being a member(s) of the above mentioned company hereby

Appoint Mr./Mrs./Miss………………………………………………………………………………………………………………....

of …………………………………………………….or failing him / her, Mr./Mrs./Miss………………………………………....

of…………………………………………………………………………………………………………………………………………

As my/our Proxy to attend and vote for me/us on my behalf at the 24th General Annual

Meeting of the company to be held on Friday, the 20th August, 2010 at 11:00 A.M

at 'Kalakunj' (Basement – Kalamandir), 48, Shakespeare Sarani, Kolkata – 700 017.

Signed this…………………..………………day of……………………………….........…….2010.

Signature……………………………………………….

Registered Folio No. /Client ID No…………………………No. of Shares……….................…..

D.P. ID No…………………………………………………………………………….…...................

Note: 1. Any member entitled to attend and vote at the meeting is entitled to attend or either vote in person or by proxy

and the proxy need not be a member.

2. The Proxies, in order to be effective, must be received by company not less than 48 hours before the time of the

Meeting at the Registered Office: Registered Office : 5F, Everest, 46/C, Chowringhee Road, Kolkata – 700 071

Name of the attending member………………………………………………………………..............................………………..

(in Block Letters)

Members registered folio number…………………………………………………………………………………………................

Name of the Proxy (in Block Letters)

(To be filled in if the proxy attends instead of the Members)

No. of Shares held……………………..………………………………………………………………………………………………..

I hereby record my presence at the 24th Annual General Meeting of the Company held at 'Kalakunj'

(Basement – Kalamandir), 48, Shakespeare Sarani, Kolkata – 700 071 on Friday, 20th August 2010 at 11.00 A.M.

……………………………………………………………………………

Member's Proxy's Signature

(To be signed at the time of handing over the slip)

Re. I/-

Revenue

.................................................................................................................................................................................

2009 - 2010 2008 - 2009Rs. Rs.

Net Profit before tax and extraordinary items 443,665,952 320,810,411 Adjusted for :

Depreciation 15,006,917 14,854,821

Interest Income (13,239,208) (10,282,729)

Income from Long Term Investment (48,207,247) (104,142,022)

Provision for Dimunition in value of Investment (3,425,886) 3,491,521

Capital reserve on consolidation 166,100 1,138,120

Interest Paid 10,500,425 1,781,062

Fixed assets written off 25,998 425,895

(Profit) / Loss on sale of Fixed Assets (4,244,228) 389,473

OPERATING PROFIT BEFORE WORKING CAPITAL CHANGES Adjusted for :

Inventories (101,559,096) (167,949,034)

Trade Payables and advances from customers (184,747,821) 603,578,411

Sale of Fixed Assets 9,801,312 31,352,493

Net Purchase/ sale of Investments (42,028,526) 149,198,950

Interest Income 13,239,208 10,282,729

Other Income from Long Term Investments 1,956,525 1,820,476

Proceeds from long term and other borrowings 67,274,953 (9,544,613)

Interest Paid (10,500,425) (1,781,062)

Dividend paid (44,657) (26,678,544)

CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR 160,612,041 130,055,195 01. Proceeds from long term and other borrowings are shown net of repayment. 02. Cash and Cash equivalents represent cash and bank balances only.

400,248,823 228,466,552

99,984,039 1,336,297

(126,157,064) 89,053,765

56,729,871 (38,004,219)

102 Ashiana Housing Ltd. - Consolidated

Date: May 29, 2010 Date: May 29, 2010

PROXY FORM

ATTENDANCE SLIP

TO BE HANDED OVER AT THE ENTRANCE OF THE MEETING HALL

NOTE: The copy of the Annual Report may please be brought to the meeting hall.

I/We………………………………………………………………………………………………………………………………………

of……………………………………………………..being a member(s) of the above mentioned company hereby

Appoint Mr./Mrs./Miss………………………………………………………………………………………………………………....

of …………………………………………………….or failing him / her, Mr./Mrs./Miss………………………………………....

of…………………………………………………………………………………………………………………………………………

As my/our Proxy to attend and vote for me/us on my behalf at the 24th General Annual

Meeting of the company to be held on Friday, the 20th August, 2010 at 11:00 A.M

at 'Kalakunj' (Basement – Kalamandir), 48, Shakespeare Sarani, Kolkata – 700 017.

Signed this…………………..………………day of……………………………….........…….2010.

Signature……………………………………………….

Registered Folio No. /Client ID No…………………………No. of Shares……….................…..

D.P. ID No…………………………………………………………………………….…...................

Note: 1. Any member entitled to attend and vote at the meeting is entitled to attend or either vote in person or by proxy

and the proxy need not be a member.

2. The Proxies, in order to be effective, must be received by company not less than 48 hours before the time of the

Meeting at the Registered Office: Registered Office : 5F, Everest, 46/C, Chowringhee Road, Kolkata – 700 071

Name of the attending member………………………………………………………………..............................………………..

(in Block Letters)

Members registered folio number…………………………………………………………………………………………................

Name of the Proxy (in Block Letters)

(To be filled in if the proxy attends instead of the Members)

No. of Shares held……………………..………………………………………………………………………………………………..

I hereby record my presence at the 24th Annual General Meeting of the Company held at 'Kalakunj'

(Basement – Kalamandir), 48, Shakespeare Sarani, Kolkata – 700 071 on Friday, 20th August 2010 at 11.00 A.M.

……………………………………………………………………………

Member's Proxy's Signature

(To be signed at the time of handing over the slip)

Re. I/-

Revenue

.................................................................................................................................................................................

BHIWADI Bageecha Gardens Rangoli The Treehouse

Hotel & Club Aangan*

JAIPUR Ashiana Manglam

JODHPUR

LAVASA

NEEMRANA

JAMSHEDPUR Enclave Suncity Residency Greens

Launching soon Commercial Project

Greens Gulmohar Park Villas Utsav - The Retirement Resort

Village Centre*

Greenwood* Utsav - The Retirement Resort*

Amarbagh*

Utsav - The Retirement Resort*

Greenhill

Brahmananda* Gardens Trade Centre Woodlands

Our Projects

* Our Ongoing Projects

BHIWADI Bageecha Gardens Rangoli The Treehouse

Hotel & Club Aangan*

JAIPUR Ashiana Manglam

JODHPUR

LAVASA

NEEMRANA

JAMSHEDPUR Enclave Suncity Residency Greens

Launching soon Commercial Project

Greens Gulmohar Park Villas Utsav - The Retirement Resort

Village Centre*

Greenwood* Utsav - The Retirement Resort*

Amarbagh*

Utsav - The Retirement Resort*

Greenhill

Brahmananda* Gardens Trade Centre Woodlands

Our Projects

* Our Ongoing Projects

Head Office

304, Southern Park, Saket District Centre, Saket, New Delhi - 110 017.

Ph: (011) 4265 4265

Web: www.ashianahousing.com Ashiana Housing Limited

Annual Report 2009-10

CREATING

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