Shri. Vijay Kumar Jatia ChairmanShri. S.C.KediaShri. N.K.DeoraShri. Hemant GargShri. Anand Didwania (w.eJ. 16.07.2010)

Punjab National BankHDFCBank Limited

Ajmera Ajmera & AssociatesChartered Accountants

Modern Centre,Sane Guruji MargMahalaxmi,Mumbai 400 011.

NOTICE is hereby given that the Eleventh Annual General Meeting of the Members ofModern India Property Developers Limited will be held at the Registered Office ofthe Company situate at Modern Center, Sane Guruji Marg, Mahalaxmi, Mumbai 400011on Saturday, the 16th July, 2011 at 11.30 a.m. to transact the following business: -

1. To receive, consider and adopt the Balance Sheet as at and the Profit & LossAccount for the period ended 31st March, 2011, and the Reports ofthe Directorsand Auditors thereon.

2. To appoint a director in place of Shri. Hemant Garg, who retires by rotation andbeing eligible, offers himself for reappointment.

3. To appoint Auditors to hold office from the conclusion of this Annual GeneralMeeting until the conclusion of the next Annual General Meeting and to fix theirremuneration.

SPECIAL BUSINESS:

4. To consider and if thought fit, to pass with or without modification(s), thefollowing Resolution as an Ordinary Resolution:

"RESOLVEDTHAT Shri. Anand Didwania, a Director who was appointed as anAdditional Director of the Company w.eJ. 16th July, 2010 in the meeting of theBoard of Directors of the Company held on the same date and who holds office assuch up to the date of the 11th Annual General Meeting and in respect of whomnotice under Section 257 of the Companies Act, 1956 has been received from amember signifying his intention to propose Shri. Anand Didwania as a candidatefor the office of Director of the Company be and is hereby appointed as a Directorof the Company, subject to retirement by rotation."

\..J., ~ '-- -------.VIJayKumar Jatia

Chairman

Registered Office:Modern Centre,Sane Guruji MargMahalaxmi,Mumbai 400011.

Dated: 29th April, 2011Notes:

1. A Member entitled to attend and vote at the Annual General Meeting isentitled to appoint a proxy to attend and vote on a poll instead of himselfand the proxy need not be a member of the Company. The instrumentappointing a proxy should, however, be deposited at the Registered Office of theCompany not less than forty-eight hours before the commencement of themeeting.

2. The Explanatory Statement pursuant to Section 173 ofthe Companies Act, 1956in respect of the business at Item No.4 is annexed hereto.

EXPLANATORY STATEMENT AS REQUIRED PURSUANT TO SECTION173(2) OF THE COMPANIES ACT, 1956

The following Explanatory Statement sets out all the material facts relating to theSPECIAL BUSINESS mentioned under Item No.4 of the accompanying Notice:

As the Company is the wholly owned Subsidiary of Modern India Limited whichis a Listed Company and so has to comply with the Listing Agreement relating tosubsidiary companies. As per clause 49(III) (i) of the Listing Agreement, if theNet worth of any of the Subsidiary Company is more than 20% of its HoldingCompany and the Subsidiaries thereof, one of the Independent Directors ofModern India Limited is to be appointed on the Board of the Company.

Shri .Anand Didwania (65) is the Managing Director of The New Globe Group.He has over 40 years of experience in shipping, clearing and forwardingbusiness. He is past President of Air Cargo Agents Association of India. His vastexperience and technical knowhow on Import-Export matters has beeninvaluable to the Company. He is an independent director on the Board of ourholding company - Modern India Limited

The Board recommend his appointment as a rotational director pursuant to theprovisions of the Listing Agreement as stated above.

Except Shri. Anand Didwania himself, no other director is interested in theresolution.

\u~----"- '-....-'-.....,...VIJAY KUMAR JATIA

CHAIRMANMumbaiDated: 29th April, 2011

Registered Office:Modern Center,Sane Guruji Marg,Mahalaxmi,MUMBAI - 400 all.

ToThe Members,

Your Directors have pleasure in presenting the Eleventh Annual Report on the workingof the Company together with the audited accounts for the year ended 31st March, 2011.

For the Year Ended31.03.2011 31.03.2010

(Rupees) (Rupees)

Profit / (Loss) beforetax (73,994,712) (88,027)Less: Provision for taxationProfit/( Loss) after Tax (73,994,712) (88,027)Add: balance brought forward (213,511) (301,538)Balance Carried to the BalanceSheet (74,208,223) (213,511)

Basic/Diluted Earning per (4.93) (0.01)share

2. DIVIDEND

Since there is loss, your directors do not recommend any dividend for the yearended on 31st March, 2011.

In the last week of October, 2010, Company signed Memorandum of Understanding[MOU]with a developer named M/s. Neel Sidhi Developers to sell Khopoli Landarea at a consideration of f62.50 Crores. Conveyance deed was made in the lastweek of March, 2011. Entire consideration has been received.

With the cash resources received, your Company is exploring investmentopportunities in residential space also in Mumbai suburbs that will fetch goodannual revenue.

The Company held Extraordinary General Meeting of the members ofthe Companyon 12th November, 2010 and passed Resolution to sell Khopoli Land pursuant toSection 293(1)(a) of the Companies Act, 1956.

Shri. Hemant Garg retires by rotation and being eligible offers himself forreappointment.

Shri. Anand Didwania (65) was appointed Additional Director of the Companyw.eJ. 16th July, 2010. He is holding the directorship up to the commencement of theensuing 11th AGM. However, a notice has been received from a member of theCompany proposing his candidature as a Rotational Director at the ensuing AGM.

The present Auditors, Mis. Ajmera Ajmera and Associates, Chartered Accountants,hold office until the conclusion of the ensuing Annual General Meeting, and beingeligible, offer themselves for re-appointment. Members are requested to appointAuditors and fix their remuneration.

During the financial year 2010-11, your Company has neither accepted norrenewed any Fixed Deposits under section 58A read with Companies (Acceptanceof Deposits) Rules, 1975.

There are no employees receiving remuneration as prescribed under Section217(2A) of the Companies Act, 1956 during the year under review, hence theCompanies (Particulars of Employees) Rules, 1975 do not apply to the Company.

9. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION & FOREIGNEXCHANGE EARNINGS AND OUTGO

The nature of the Company's activities is such that the particulars under theprovisions of Section 217(1)(e) of the Companies Act, 1956 read with theprovisions of Companies (Disclosure of particulars in the Report of Board ofDirectors) Rules, 1988 arenot given.

There has been neither any earning nor outgoing of foreign exchange during theyear under review.

\,===================

i) that in the preparation of the annual accounts, the applicable accountingstandards have been followed along with proper explanation relating tomaterial departures;

ii) that the Directors have selected such accounting policies and applied themconsistently and made judgments and estimates that are reasonable andprudent so as to give a true and fair view of the state of affairs of theCompany at the end of the financial year ended on 31st March, 2011 and ofthe loss of the Company for that period;

Hi) that the Directors have taken proper and sufficient care for the maintenanceof adequate accounting records in accordance with the provisions of theCompanies Act, 1956, for safeguarding the assets of the Company and forpreventing and detecting fraud and other irregularities;

iv) that the Directors have prepared the annual accounts on a going concernbasis.

Compliance Certificate of the Secretary in whole-time practice in respect of thefinancial year ended on 31st March, 2011 is annexed hereto.

~,"'-~~ '-Vijay Kumar Jatia

ChairmanPlace: MumbaiDate: 29th April, 2011.

Phone 2882613428825729

Mobile 93244261349870455527

Tele Fax: 28825729Ernail : ajrnera5@yahoo.com

2/334, New Sonal Link Ind. Estate,(Service) 3rd Floor, Link Road,Malad (W), Murnbai • 400 064.

REPORTTO THE MEMBERSOFMODERN INDIA PROPERTYDEVELOPERSLIMITED

We have audited the attached Balance Sheet of MODERN INDIA PROPERTYDEVELOPERS LIMITED as at 31st March, 2011 and the Profit and LossAccount of Company for the year ended on that date. These financialstatements are the responsibility of the Company's management. Ourresponsibility is to express an opinion on these financial statements based onour audit.

We have conducted our audit in accordance with auditing standardsgenerally accepted in India. Those Standards require that we plan andperform the audit to obtain reasonable assurance about whether the financialstatements are free of material misstatements. An audit includes examining,on a test basis, evidence supporting the amounts and disclosures in thefinancial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well asevaluating the overall financial statement presentation. We believe that ouraudit provides a reasonable basis for our opinion.

As required by the Companies (Auditor's Report) Order, 2003 issued by theCentral Government of India in terms of sub-section (4A) of section 227 ofthe Companies Act, 1956, as amended by Companies (Auditor'sReport)(Amendment) Order, 2004, and on the basis of such checks of thebooks and records of the company, as we considered appropriate, we enclosein the Annexure a statement on the matters specified in paragraphs 4 and 5 ofthe said order to the extent applicable.

i). We have obtained all the information and explanations, which to thebest of our knowledge and belief were necessary for the purposes ofour audit;

ii). In our opinion, propel' books of account as required by law have beenkept by the company so far as appears from our examination of thosebooks.

iii). The Balance Sheet and Profit and Loss Account dealt with by thisreport are in agreement with the books of account.

iv). In our opinion, the Balance Sheet and Profit and Loss Account dealtwith by this report comply with the accounting standards referred to insub-section (3C) of section 211 of the Companies Act, 1956.

v). On the basis of written representations received from the directors, ason 31st March, 2011 and taken on record by the Board of Directors, wereport that none of the directors is disqualified as on 31st March 2011from being appointed as a director in terms of clause (g) of sub-section(1)of section 274 of the Companies Act, 1956.

vi). In our opinion and to the best of our information and according to theexplanations given to us, the said accounts read together with the notesappearing on schedule "~ with significant Accounting Policies andother notes appearing elsewhere give the information required by theCompanies Act, 1956, in the manner so required and give a true andfair view in conformity with the accounting principles generallyaccepted in India.

i). In the case of the Balance Sheet of the state of affairs of theCompany as at 31st March, 2011.

ii). In the case of the Profit and Loss Account, of the 'Loss' for the yearended on that date.

For AJMERA AJMERA AND ASSOCIATESFIRM REGISTRATION NO.123989W~::~:::TS(Sandeep Ajmera)

PARTNERMembership No. 48277

PLACE:MUMBAIDATED: 29-04-2011

Annexure referred to in paragraph 3 of the Auditors' Report to the Membersof MODERN INDIA PROPERTY DEVELOPERS LIMITED, on the Accountsfor the year ended 31st March, 2011.

1. i) The Company has maintained proper records showing fullparticulars including quantitative details and situation of fixed assets.

ii) As explained to us the fixed assets have been physically verified bythe management at reasonable intervals during the year which in ouropinion is reasonable having regard to the size of the company andnature of its assets. No material discrepancies were noticed on suchverifica tion.

iii) Fixed Assets disposed of during the year were substantial butdoes not affect the going concern assumption.

2. The reporting requirements of Para 4(ii) are not applicable, as thecompany does not have any inventories.

3. (a) The company has given loan to one party covered in the registermaintained under section 301 of the Companies Act 1956. Maximumamount involved during the year was Rs.5,OO,OO,OOO/- and year endbalance of the amount due from such party was Rs.5,OO,OO,OOO/-

(b) The rate of interest and other terms and condition of loan given by thecompany are prime facie not prejudicial to the interest of the company.

(d) The company has taken unsecured loan from nine parties (Companies,firms or other parties) covered in the register maintained under section301 of the Companies Act 1956 and maximum amount involved duringthe year was Rs.6,02,37,5000/ - and year end balance is Nil.

(e) In our opinion and according to the information and explanationsgiven to us the rate of interest and other terms and conditions of loantaken are prima facie nor-prejudicial to interest of the company.

(f) No terms and conditions have been stipulated in respect of repaymentof principal amount.

3. In our opinion and according to the information and explanations given tous, there are adequate internal control procedures commensurate with thesize of the company and the nature of the business for the purchase offixed assets and for the sale of goods and services. During the course ofour audit, we have not observed any continuing failure to correct majorweakness in internal control system.

4. (a) Based on the audit procedures applied by us and according to theinformation and explanations provided by the management, we are of theopinion that the particulars of contracts or arrangements referred to insection 301 of the Companies Act 1956have been entered into the registerrequired to be maintained under that section.

(b) According to the information and explanations give to us, transactionsmade in pursuance of contracts or arrangements entered in the registermaintained under· Section 301, have been made at prices which arereasonable having regard to the prevailing market prices at the relevanttime during the year.

5. The Company has not accepted any deposits during the year from thepublic within the meaning of the provisions of Section 58A and 58AA orany other relevant provision of the Companies Act, 1956 and the rulesmade thereunder. Hence, the Clause (vi) of the order is not applicable.

6. The Company has internal audit system commensurate with its size andnature of its business.

7. As informed to us the central Government has not prescribed themaintenance of cost records under Section 209 (1)(d) of the CompaniesAct, 1956.

8. (a) According to the information and explanations given to us and therecords examined by us, the company is regular in depositing withappropriate authorities undisputed statutory dues including providentfund, investor education and protection fund, employees state insurance,income-tax, sales-tax, wealth-tax, service tax, custom duty, excise' duty,cess and other statutory dues wherever applicable. According to theinformation and explanations given to us, no undisputed arrears ofstatutory dues were oJltstanding as at 31st March 2011 for a period ofmore than six months from the date they became payable.(b) According to the information and explanations given to us, there are nocases oinon-deposit with the appropriate authorities of disputed dues ofsales taxi income taxi wealth taxi cess, custom xcise duty, servicetax. "'~~JI, AND -</

~"Srr-~~S'~)~~( )Y,olI.( ~

3f • '.' tJ· 1;) tl' '~ ~ 1\ ~ . ~ .:~

*'. '\ t"\. )t:'Ch\.... .I~'7)..~- J~""':~

-tl/({j ACCfj~'

9. The accumulated losses of the Company as on 31st March 2011 isRs.7,42,08,223j- and the same is not in excess of 50% of its networth. TheCompany has incurred cash loses during the financial year covered by ouraudit of Rs.7,39,94,712j -, and has incurred no cash loss in the immediatelypreceding financial year.

11. The Company has not granted any loans or advances on the basis ofsecurity by way of pledge of shares, debentures or other securities.

12. The provisions of any Special Statue applicable to Chit Fund, Nidhi orMutual Benefit Fund j Societies are not applicable to the Company.

13. The Company is not dealing or trading in shares, securities, debentures orother investments and hence, the requirements of Para 4(xiv) are notapplicable to the Company.

14. According to the information and explanations given to us, the Companyhas not given any guarantee for loans taken by others from banks andfinancial institutions.

15.The term loans were applied for the purpose for which the loans wereobtained.

16. On the basis of our examination, and as per information and explanationsgiven to us, funds raised on short-term basis, were not used for long-terminvestments.

17. The Company has not made any preferential allotment of shares to partiesand companies covered in the Register maintained Under Section 301 ofthe Companies Act, 1956.

18. No debentures have been issued by the Company and hence, the questionof creating securities in respect thereof does not arise.

20. As per the information and explanations given to us, no fraud on or by theCompany has been noticed or reported during the year.

PLACE: MUMBAIDATE: 29-04-2011

For AJMERA AJMERA AND ASSOCIATESFIRM REGISTRATION NO.123989W

CHARTERED ACCOUNTANTS.

~H~~( Sandeep Ajmera)

PARTNERMembership No. 48277

As at31st March, 2011

Ru ees

As at 31st31st March, 2010

Ru ees

APPLICA nON OF FUNDSFixed AssetsGross BlockLess: DepreciationNet BlockPre-Operative Expenses Pending AllocationLand Development & Other Expenses

Miscellaneous Expenditure(To the extent not written off or adjusted)Preliminary Expenses)

SIGNIFICANT ACCOUNTING POLICIES, NOTES ONACCOUNTS & CONTINGENT LIABILITIES

88,41444,05,00,000

Shareholders' FundsShare Capital

Loan FundSecured LoanUnsecured Loan

Current Assets, Loans & AdvancesCash & Bank BalancesLoans & Advances

As per our report of even date attachedFor Ajmera Ajmera and Associates.Chartered AccountantsFirm Reg. No. 123989W

~~~PartnerMembership No. 48277

Mumbai, dated:2 9 APR 2011

10,09,202 16,23,9366,60,664 8,09,9883,48,538 8,13,948

23,70,35962,29,24,219

3,48,538 62,61,08,526

69,53,614 69,57,3977,24,17,325 1,32,14,1047,93,70,939 2,01,71,501

39,27,700 5,59,08,687

39,27,700 5,59,08,687

7,54,43,239 (3,57,37,186)

j~~-Ch ir an

! ~C--

Mumbai, dated: 2. 9 APR 201'

MODERN INDIA PROPERTY DEVELOPERS LTD.PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31.03.2011

For the yearSchedule ended

31st March 2011Ru ees

For the yearended

31st March 2010Ru ees

INCOME:Interest Income(TDS Rs. 9041/- Previous Year Rs. NIL)

Total

EXPENDITURE:Administrative & Establishment Exp 9 1,03,445 20,065Loss/ (Profit) on Sale of Assets 7,39,81,678 (1,08,092)

Total 7,40,85,123

Profit/(Loss) before Tax (7,39,94,712) 88,027Provision for Income TaxProvision for Fringe Benefit TaxNet Profit/(Loss)after TaX 88,027Add: Balance brought forward 3,01,538Balance carried to Balance Sheet (2,13,511)

Earning Per SharesBasic & diluted earnings per share. (4.93) 0.01Notes to the Accounts 10

Mumbai,dated:29 APR 2011 Mumbai, dated:2 9 APR 2011

As at31st March, 2010

Ru ees

MODERN INDIA PROPERTY DEVELOPERS LTD.SCHEDULES ANNEXED TO AND FORMING PART OF THE

BALANCE SHEET AS AT 31.03.2011As at

31st March, 2011Ru ees

SCHEDULE-1SHARE CAPITALAuthorised4,98,50,000 Equity Shares of Rs. 10/- each.15,000 Pref. Shares of Rs. 100/- each.

Issued, Subscribed & Paid Up1,50,00,000 Equity Shares of Rs.l0/ - each fully paid up(The entire share capital is held by the HoldingCompany Modern India Ltd. and its nominee)

SCHEDULE-2SECURED LOANSFrom Bank - Car Loan(Secured by Hypothication of Car in favour of Bank)(Installments due within one year Rs Nil, previousyear Rs. 88,414/ -)

SCHEDULE-3UNSECURED LOANSLoan from - Holding Company

49,85,00,00015,00,000

50,00,00,000

49,85,00,00015,00,000

50,00,00,000

44,05,00,00044,05,00,000

MODERN INDIA PROPERTY DEVELOPERS LIMITEDSchedule -4

Rates Gross Block Addition Deduction Gross Block Dep. for the Dep. Dep. Net Block Net Block

SrI Particulars in as on as on upto year On upto as on as on

% 01.04.2010 31.03.2011 31.03.2010 Deduction 31.03.2011 31.03.2011 31.03.2010

1 IPLANT & MACHINERIES 13.91 2,67,658 - 2,67,658 - 56,465 29,377 85,842 - - 2,11,193

2 ICOMPUTERS 40.00 3,01,678 - 3,01,678 - 2,04,790 38,755 2,43,545 - - 96,888

3 IVEHICLE 25.89 10,09,202 - - 10,09,202 5,38,904 1,21,760 - 6,60,664 3,48,538 4,70,298

4 IOFFICE EQUIPMENTS 13.91 18,398 - 18,398 - 5,604 1,780 7,384 - - 12,794

--,5 IFURNITURE & FIXTURES 13.91 27,000 - 27,000 - 4,225 3,168 7,393 - - 22,775

TOTAL 16,23,936 - 6,14,734 10,09,202 8,09,988 1,94,840 3,44,164 6,60,664 3,48,538 8,13,948

Previous Year 38,69,063 29,500 22,74,627 16,23,936 12,21,135 3,71,572 7,82,719 8,09,988 8,13,948

~\~ •..,.Provision for Depreciation of Rs. 1,94,840 is debited to Land Development & Other Expenses.

MODERN INDIA PROPERTY DEVELOPERS LTD.SCHEDULES ANNEXED TO AND FORMING PART OF THE

BALANCE SHEET AS AT 31.03.2011As at

31st March, 2011Rupees

SCHEDULE-5CASH & BANK BALANCESCash on HandBalances with Schedule Banks

In Current AccountsIn Fixed Deposit

SCHEDULE-6LOANS & ADVANCES(Unsecured Considered Good)Advances Recoverable in Cash or in kind forvalue to be receivedLoans to Limited CompanyAdvance Tax & Tax Deducted at SourceDeposits

SCHEDULE-7CURRENT LIABILITIES & PROVISIONSCurrent LiabilitiesSundry CreditorsOther LiabilitiesProvisions

SCHEDULE-8MISCELLANEOUS EXPENDITUREPreliminary ExpensesOpening balanceLess: Written off during the year

2,07,061

66,93,689

2,21,16,7385,00,00,000

2,99,5871,000

7,24,17,325

34,74,4504,53,250

3,5633,563

12,624395

4,79732,873

555,3883,6182,5502,500

4038,605

1,03,445

As at31st March, 2010

Rupees

2,32,25266,93,689

7,04,60821,452

1,32,14,104

2,97,5215,50,00,477

6,10,6895,59,08,687

10,0666,5033,563

1,0202,500

16,54520,065

(Rs in lacs)Cash Flow from Operating Activities: 2010-2011 2009-2010Net profit before Tax (739.95)Add/(less ):Depreciation 1.95 3.72Preliminary exp w/off 0.04 0.07(Profit)/Loss on sale of Asset 739.82 (1.08)Interest Received (0.90) 740.90Operating Profit/(Loss)before working Capital Change 0.95Other receivables (596.08) 21.69Liabilities (514.77) (1,110.85) 44.33Cash Generated From Operation (1,109.90)Less Direct tax Paid (0.30) --Net Cash Used in Operating Activities (1,110.20)

=Cash Flow From Investing ActivitiesPurchase of Fixed Assets (0.30)Sale of Asset 6,250.00 16.00Project Expense Capitalised (734.85) (726.83)Interest Received 0.90Net cash used or investing activites 5,516.05

=

I Cash Flow from Financing ActivitiesRepayment of Secured Loans (0.88) (12.68)Borrowing From Holding Company (4,405.00) 655.59Net cash From Financing activites - (4,405.88)Net Increase/(Decrease) in Cash & Cash Equivalent(A+B+C) (0.03)

=Opening Balance of Cash & Bank Bal 69.57 68.91Closing Balance of Cash & Bank Bal 69.54 69.57Net Increase/(Decrease) as disclosed above (0.03)

As per our report of even date attachedFor Ajmera Ajmera and Associates.Chartered AccountantsF1;::~WSandeep AjmeraPartner

Membership No. 48277

Mumbai, dated: 2. 9 APR ZO

SCHEDULE OF NOTES ANNEXED TO AND FORMING PART OF THEBALANCE SHEET AS AT 31sTMARCH, 2011.

SCHEDULE - 10

1 Significant Accounting Policies:

A Basis of Preparation of Financial Statements:

i. The financialstatements are prepared under the HistoricalCostConventiononaccrualbasis.

ii. The financialstatements have been prepared to comply in all material respectswith the Mandatory Accounting Standards issued by The Institute ofChartered Accountants of India notified under section 211 (3c) of theCompaniesAct,1956.

B Fixed Assets:i. Fixed Assets are stated at cost of acquisition including expenses relating toacquisition,errection,constructionless accumulated depreciation.

C Depreciation:

Depreciation is provided at the rates and in the manner specified in ScheduleXIVof the Companies Act, 1956.

D Provisions:

A Provision is recognized when there is a present obligation as a result of apast event it is probable that an out flow of resources will be required tosettle the obligation and in respect of which reliable estimates can be made.Provisions are not discounted to their present value and are determinedbased on the best estimate required to settle the obligation at the year end.These are reviewed at each year end date and adjusted to reflect the bestcurrent estimate.

E Preliminary Expenses:

Preliminary Expenses are fully written off.

2 In view of slowdown of IT/ITeS sector, the Board of Directors of the Companyhave disposed off the land on as is where is basis together with all approvals andpermissions.

2006 has been determined to the extent such parties have been identified on thebasis of information available with the Company.

4 Loans & Advances:The balances of Loans & Advances and Sundry Creditors are subject to

Confirmation.5 The Contingent liability not provided for Guarantee issued by Punjab National

Bank for Rs. 66,93,689/- in favour of The Court Receiver, High Court, Bombaytowards past outstanding dues of Electricity, water charges and other dues underclause 29 of the terms & conditions for acquisition of land under auction.Competent Authority of Maharashtra State Electricity Distribution Co. Ltd havedecided to grant Standard One Time Settlement package to the Company.

6 None of the employees are covered under Payment of Gratuity Act.

7 During the year the Company has capitalized interest under Developmentexpenses amounting to Rs. 9,95,182/- net off interest income of Rs. 5,00c_,999/-

(T.D.S.Rs. 20,874/-).8 With effect from April 01, 2010, Modem India Limited - Holding Company has

not charged any interest on loans given by it and waived the same.

9 Disclosures are required by the Accounting Standard - 18 on "Related PartyDisclosure" are given below.

i. Related parties and relationship

(a) Where Control Exists:Modern India Limited: Holding Company

(b) Significant InfluenceA1cyoneTrading Company Private Ltd.Camellia Mercantile Private LimitedCandescent Traders Pvt. Ltd.F. Pudumjee Investment Co. Ltd.Ignatius Trading Company Pvt. Ltd.Modern Derivatives & Commodities Pvt. Ltd.Modern India Realty & Infrastructures LimitedModern India Free Trade Warehousing P LimitedSarat Leasing & Finance Ltd.

(c) Key Management Personnel & Relatives:

(i) Mr. V. K. Jatia - Chairman

(ii)Mr. Vedant Jatia.

Nature of Transactions Significant Holding TotalInfluence Company Rs.

Rs. Rs.(a) Loans Taken 108175000 217445401 325620401

22710000 161984315 184694315(b) Repayment out of Loans taken 108175000 657945401 766120401

78135000 41000000 119135000(c) Amount of loans outstanding at 0 0 0

the year end0 440500000 440500000

(d) Interest on Loans taken 1496181 0 14961812325731 52495150 54820881

(e) Amount of interest outstanding 0 0 0at the year end

1973348 40599749 42573097(f) Loans Given 50000000 0 50000000

0 0 0(g) Repayment out of Loans Given 0 0 0

0 0 0(h) Amount of loans outstanding at 50000000 0 50000000

the year end0 0 0

(i) Interest on Loans Given 90411 0 904110 0 0

U) Amount of interest outstanding 90411 0 90411at the year end

0 0 0

Figures of the previous year has been regrouped, reclassified and rearrange wherevernecessary.

Earning Per Share:

Earning Per Shares has been calculated as under:

(a) Profit / (Loss) Mter Taxation(b) Number of Equity Shares Outstanding(c) Earning Per Shares

(Basic and diluted)

Current YearRupees

(73994712)15000000

(4.93)

Previous YearRupees88027

150000000.01

Balance Sheet Abstract and Company's General Business Profile as required in partIV of schedule VI of the Companies Act, 1956 is appended here is below:

i Registration Details

Registration No.

Balance Sheet Date

11-128584

31- 03 - 2011

Date Month Yearii Capital raised during the year (Amount in Thousands)

Public Issue Right Issue

Nil Nil

iii Position of Mobilization and deployment of Funds (Amount in Thousands)

Total liabilities Total Assets

Source of Fund

Paid up Capital

1,50,000

Secured Loans

Nil

Application of Funds

Net Fixed Assets

Reserve & Surplus

Nil

Miscellaneous Expenditure

Nil

iv Performance.of Company (Amount in Thousands)

Turnover Total Expenditure

~ gD ~ffJfBS

Earning per Share in Rs.

,s per our report of date attached

or Ajmera Ajmera and Associates.Chartered AccountantsFirm Reg. No. 123989W

~~

;andeep Ajrnera)artnerv1embership No. 48

Mumbai, dated: 2 9 APR 2011 Mumbai, dated: 2 9 APR 2011