Clasificación de los almacenes

In Rupees Millions

31.12.2007 31.03.2007 31.03.2006 31.03.2005 31.03.2004 31.03.2003 PAT as per Audited Accounts 612.62 318.14 19.66 58.46 4.23 2.28 Adjustments for -

Changes in A/c policies for Revenue Recognition

- Impact on Sales - 49.37 - (13.57) 6.29 (1.73) - Increse / (decrease) in stock and

Projects in Progress

for Depreciation 0.45 0.99 - (1.63) (0.74) (0.11) for Salary / Remuneration to Partners of Triveni Firm - - - (0.24) (0.24) (0.24) Goodwill on purchase arising on restatement w/off (5.06) (6.74) - - - - Impact of -

Tax for the year (3.54) (6.54) 0.07 (7.66) (0.97) (0.81) Deferred Tax 0.76 (0.33) - 0.09 (0.30) (0.41) PAT as per Restated Accounts 605.24 322.64 19.73 46.27 3.70 2.58

For the Financial Year / Period ended on Particulars

-

(32.25) - 10.82 (4.57) 3.59

The explanatory notes for these adjustments are discussed below: i. Change in accounting policy for revenue recognition policy

Pursuant to the issuance of the Guidance Note on ‘Recognition of revenue by Real Estate Developers’, by the Institute of Chartered Accountants of India, the Company changed the accounting policy for recognition of revenue on all new real estate projects from the year ended March 31, 2007 onwards so as to fully recognize profits under the `Percentage Completion Method’ (POC).

However, for the years ended March 31, 2003, 2004, 2005 and 2006 the revenues were being recognized on the basis of ‘registered sale deed executed’ or ‘allotment / advice letters for the houses / flats issued’ for all the projects except in case of Triveni Paradise project, where work completion method was followed.

As a result of change in the accounting policy in the year ended March 31, 2007, revenue is recomputed and revised as per POC method on all the projects and consequential effect is given in the restated Statement of Asset and Liabilities and the restated Statement of Profit and Loss Account for the period ended December 31, 2007 and for the years ended March 31, 2003, 2004, 2005, 2006 and 2007.

ii. Change in the accounting policy for Depreciation

Depreciation on all the fixed assets upto the year ended March 31, 2006 was provided on the basis of the technical evaluation which has now been changed from the year ended March 31, 2007 and provided as per the Schedule XIV of the Companies Act, 1956, except steel shuttering & scaffoldings material and wooden shuttering, treated as a part of plant and machinery, where the estimated useful life has been determined as 5 years and 3 years respectively. Accordingly impact of depreciation on account of the said change in method of accounting has been recomputed for years ended March 31, 2003, 2004, 2005, 2006, 2007 and the period ended December 31, 2007.

iii. Adjustment for Salary / Remuneration to Partners of Triveni Firm

For the years ended March 31, 2003, 2004 and 2005 the salary paid to the erstwhile partners, now directors has been grouped in the employee cost in the restated Statement of Profit and Loss Account.

Triveni Infrastructure Development Company Limited paid Triveni Firm an amount of Rs.180.20 Million to take over its assets and liabilities at its book value on March 31, 2006. However, while restating the audited accounts of Triveni Firm its book value have reduced to an extent of Rs. 33.72 million. This resultant excess of purchase consideration over the reduced book value of Triveni Firm is shown as Goodwill in the restated Summary Statements of the Company. The same is being amortized over a 5 year period as required by Accounting Standard - 14 on ‘Accounting for Amalgamations’ issued by the Institute of Chartered Accountants of India.

v. Tax for the year

The restated Statement of Profit and Loss Accounts has been adjusted for respective years in respect of short / excess provision for income tax as compared to the tax payable as per income tax returns filed by the Company for the respective years. Tax obligations were not provided in the books of Triveni Firm which have now been adjusted as an expense for those respective financial years.

The change in the provision for tax as a result of change in the accounting policies for revenue recognition and depreciation has also been given effect in the restated Statement of Profit and Loss Account.

vi. Impact of Deferred Tax

In the erstwhile partnership firm there was no requirement to comply with the provisions of Accounting Standard – 22, ‘Accounting for Taxes on Income’. The restated Summary Statements have been prepared after considering the effect of Deferred Tax as per the provisions of the Accounting Standard – 22 for the years ended March 31, 2003, 2004, 2005 and 2006 for the Triveni firm.

The change in deferred tax as a result of change in the accounting policy for depreciation has also been given effect in the restated Statement of Profit and Loss Account.

vii. Material regroupingss

The following balances have been regrouped in the restated Statement of Assets and Liabilities and the restated Statement of Profit and Loss Account:

a) Bank FDRs for the years ended March 31, 2003, 2004, 2005, 2006, 2007 and the period ended December 31, 2007 have been regrouped under the head Other Current Assets in the restated Statement of Assets and Liabilities.

b) For the year ended March 31, 2003 ‘earnest money deposited’ and ‘advance paid towards land’ which was grouped under the head ‘Investments’ have been now regrouped under the head ‘Loans and Advances’. c) For the year ended March 31, 2006, the Revaluation Reserve which arose in the previous financial year and

transferred to Partners Capital account in the current financial year has now been shown under the head ‘Reserves and Surplus’. Further, in the same year, the amount paid as an advance towards land has been regrouped from ‘Investments’ under the head ‘Loans and Advances’.

2. Purchase of M/s. Triveni Infrastructure Development Company

The Company took over the entire existing business of Triveni Firm on March 31, 2006 by purchase of all its assets and liabilities at its book value of Rs.180.20 million as on that date. The purchase consideration consists of Share Application Money of Rs.150.00 million and the balance of Rs.30.20 million as Unsecured Loans in books of accounts.

3. Revaluation and reclassification

A land located at Sultanganj and Raipura Jat, Agra together admeasuring 0.05 Million Sq. mtrs. had been revalued from the purchase cost of Rs.35.03 million to Rs. 98.46 million resulting to a Revaluation Reserve of Rs.63.43 million appearing in the books of accounts of Triveni Firm for the year ended March 31, 2005. The same was reclassified as Closing Work in Process in the books of accounts for the year ended March 31, 2006 of Triveni Firm.

The earnings considered in ascertaining the Company’s EPS comprises the profit available for shareholders, i.e. profit after tax and statutory/regulatory appropriations, as restated. The number of shares used in computing Basic EPS is the weighted average number of shares outstanding during the year (Please refer Annexure – XIII on ‘Statement of Accounting Ratios’).

5. Segment information

Triveni Infrastructure Development Company Limited, a Level 1 Enterprise is required to disclose the information required by Accounting Standard – 17. No separate segments have been reported as the company does not have more than one Business or Geographical Segments, within the meaning of Accounting Standard – 17, which differ from each other in risk and reward.

6. Related Party Disclosure:

The Related Party Disclosure as required by the provisions of Accounting Standard – 18, Related Party Disclosures issued by the Institute of Chartered Accountants of India can be seen from Annexure V.

C. SIGNIFICANT ACCOUNTING POLICIES AND NOTES AS APPEARING IN THE AUDITED

FINANCIAL STATEMENTS OF THE COMPANY ARE AS UNDER: