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Notes to Accounts of Ahluwalia Contracts (India) Ltd.

Mar 31, 2015

1a. CONTINGENT LIABILITIES NOT PROVIDED FOR

S. Particulars As at 31.03.2015 As at 31.03.2014 No. (Rs.) (Rs.)

a) Counter guarantees given to bankers against Bank guarantees 439,95,33,286 384,56,90,275

b) Indemnity Bonds/Performance Bonds/Surety Bonds / Corporate guarantees 94,35,80,055 153,88,80,490 given to clients

c) Value Added Tax liability 252,94,30,594 1,98,16,085

d) Demand of stamp duty on Real Estate Project 57,41,980 57,41,980

e) Claims against the company not Acknowledged as debts 53,96,10,957 50,50,66,711

f) Excise duty demand for F.Y. 1998-99 & 2000-2001 14,26,506 14,26,506

g) Service tax demand on alleged

(i) wrong availment of abatement on account of free supply of material by 197,80,90,751 209,23,99,269 the Client

(ii) Composition scheme 47,84,15,456 47,84,15,456

(iii) Exempted projects 88,74,39,462 119,38,02,337

(iv) Others 21,82,83,684 47,06,52,422

h) Provident fund demand 54,57,34,315 54,57,34,315

Based on legal opinion taken by the Company & discussions with the advocates & consultants, the Company believes that there is fair chance of decisions in its favour in respect of all items listed in (c) to (h) above and hence no provision is considered necessary against the same. The replies/appeals have been filed before appropriate authorities/Courts. Disposal is awaited.

b. Capital commitments :- Capital contracts remaining to be executed (net of payments) and not provided for Rs. 13,70,34,118/-(Previous Year Rs. 6,24,67,756/-)

2a. Trade receivables (Non-current) and work in progress includes a sum of Rs. 76,57,45,611 (P.Y. Rs. 76,57,45,611) under litigations at various forums for which no provisions has been made as the management believes that the revenue recognized is fully recoverable. As the matter of accounting policy followed by the company the claims from the customers are accounted for to the extent the same are settled/awarded in favour of the company.

b. The company had executed Commonwealth Games Village Project and raised R.A. bills amounting to Rs. 638,87,67,898/- up to the March, 2011 which have been certified to the extent of Rs. 571,84,67,898/-. The company has further raised bills and lodged claims of Rs. 527,36,55,996 on the client with respect to additional works on account of deviations and other aspects which is disputed by the client. The client has in turn raised a counterclaim on the company for Rs.1170,25,55,818/-. As per the terms of the agreement, both the parties have initiated process of arbitration and appointed arbitrators. The Hon'ble High Court has appointed a third Arbitrator as presiding Arbitrator. The matter is under arbitration. The management is hopeful of getting a favorable award and recovery of dues.

c. On 19th Jan, 2011 Sri Sumeru Realty Pvt. Ltd (SSRPL) Bangalore, a client invoked the Bank Guarantees amounting to Rs. 5,00,44,760/- and terminated the Contract on 10.03.2011. The Company filed petition in the District and Sessions Court, Bangalore to restrain the Bank for release of Payment against these Bank Guarantees. The Court restrained the Bank to release the payment of Bank Guarantees on the condition of deposit equivalent amount with court. The Company has also filed petition in the District Court, Bangalore on 20.3.2011 to secure its claims. As per the terms of the agreement, both the parties have initiated process of arbitration and appointed arbitrators. The Hon'ble High Court has appointed a third Arbitrator as presiding Arbitrator. The company has lodged claims of Rs. 34,91,93,064/- and the client has in turn raised a counter claim on the company for Rs. 43,00,00,000. The matter is under arbitration. The management is hopeful of getting a favorable award.

d. The Construction contract of Festival City, Ludhia na was awarded on 10.03.2006 for a contract value of Rs. 110,00,00,000/- to be completed in a period of 15 months. The project was delayed due to various reasons and under suspension since June 2009. During the course of the execution of the project, the Company had entered in to an agreement to create strategic account & agreement to sell in April 2007 for contiguous office space of 28744 sq. ft for a total sale consideration of Rs. 6,46,74,743/-.

The Client's bankers have taken over possession of the project (Building) under SARFESI Act and the company had filed a suit with Debt Recovery Tribunal (DRT) for securitization of space allotted under strategic account. DRT passed an order dated 02/09/14 against the company. The company has filed an appeal before Debt Appellate Recovery Tribunal (DART) against DRT's decision on dated 27/10/14.

As per the terms of agreement both parties have initiated process of arbitration. The company has lodged claims of Rs.62,39,52,000. The matter is pending under arbitration. The recovery of the Company's dues is dependent upon decision of the judicial process. The management believes a favorable outcome of proceedings and hopeful for recovery of the dues.

3. In the opinion of the Board, Current Assets, Loans and Advances are approximately of the value stated if realised in the ordinary course of business. The provisions for depreciation and for all known liabilities are adequate and not excess or short of the amount considered necessary.

4. The Company has initiated the process of obtaining confirmation from suppliers who have registered themselves under the Micro Small Medium Enterprises Development Act, 2006 (MSMED Act, 2006). Based on the information available with the Company, the balance due to Micro Small Enterprises as defined under the MSMED Act, 2006 is as under:

5. Trade receivables. Trade payables and Advances recoverable balances appearing in the Balance Sheet are subject to confirmation.

6. The Company has 100% wholly owned subsidiaries namely M/s. Ahlcon Ready Mix Concrete Pvt. Ltd. (ceased w.e.f. 31.03.2014), Dipesh Mining Pvt. Ltd., Jiwan Jyoti Traders Pvt. Ltd., Paramount Dealcomm Pvt. Ltd., Premsagar Merchants Pvt. Ltd. and Splendor Distributors Pvt. Ltd.

7. The salient features of Service Concession Arrangement w.r.t Bus Terminal & Depot and Commercial Complex at Kota

i) The Company entered into an "Agreement to Develop" with Rajasthan State Road Transport Corporation (RSRTC), grantor, for Development/Construction of Bus Terminal and Depot and Commercial Complex at Kota, on 19th September, 2007. The project was to be completed within 18 months. Delay in approval of drawing by Statutory Authorities affected the progress of the project and delay in completion. The company had been provided revised sanction plan from RSRTC for some modification and additional works. The modification and additional works for the second phase are in advance stage and likely to be completed in June 2015.

ii) The project cost has been estimated at Rs. 90,00,00,000/- out of which Rs. 78,36,48,513/- have been spent till 31.03.2015. The expenditure incurred has been shown in Balance Sheet under the main head "Fixed Assets" and sub-head "Intangible assets under development" (refer note No. 12). The total expenditure will be amortized over the periods, once the asset will be available for use.

iii) Right to Lease Commercial Complex: The period of lease of right of Commercial complex is 40 years (30 years 10 years extended period) from the date of completion of the project. Thereafter, the Commercial Complex will be handed over to RSRTC.

iv) a) Revenue from advertisement, outside the building shall be shared between RSRTC & the company in 50:50 ratio. Revenue from advertisement, inside the building is not required to be shared with RSRTC

8. GRATUITY AND OTHER POST EMPLOYMENT BENEFIT PLANS Defined contribution plan

A) Contribution to Recognised Provident Fund

The Company contributed Rs. 3,05,21,389/-(March 31, 2014 Rs.2,38,02,815/-) towards provident fund during the year ended March 31, 2015.

B) Gratuity Plan

The Company has a defined benefit gratuity plan. Gratuity is computed as 15 days salary for every completed year of service or part thereof in excess of 6 months and is payable on retirement/termination/resignation. The enterprises has funded the liability with Life Insurance Corporation (LIC). Company makes provision of such gratuity liability in the books of accounts on the basis of actuarial valuation as per the projected unit credit method.

The following tables summarise the components of net benefit expense recognized in the statement of profit and loss and amounts recognized in the balance sheet for the Gratuity.

9. SEGMENT REPORTING :-

The company is engaged in the business of providing construction related activities where risks and returns in all the cases are similar.

Further the company operates only within India having similar: (i) economic and political conditions, (ii) activities at all project locations and (iii) risk associated with the operations.As such the risks and returns at all project locations are similar.

Therefore the operations of the company fall under single segment as defined in Accounting Standard-17.

10. Pursuant to Section 135 of the Companies Act, 2013 and rule made thereunder, the Board of Directors has constituted a Corporate Social Responsibility (CSR) Committee. The Committee has adopted a Corporate Social Responsibility Policy. As per Section 135(5) of the Act, the Company needs to ensure at least 2% of the average net profit of preceding three financial years to be spent on CSR activities as mentioned in CSR Policy. However, due to losses incurred in past, the average result of preceding three financial years (2011-12, 2012-13 and 2013-14) is in loss, consequently the Company is not required to spend any amount on CSR for the current year.

11. PREVIOUS YEAR FIGURES

The company has reclassified previous year figures to conform to this year's classification.


Mar 31, 2014

1. Nature of Operations

Ahluwalia Contracts (India) Limited (hereinafter referred to as "the Company") is a Public Ltd. Company in India and incorporated under the provisions of the Companies Act, 1956. The Company is primarily engaged in the business of construction activities. The company has also diversifed into Built Operate Transfer (BOT) operations by building and operating commercial complex under concession service arrangements.

2a. Contingent Liabilities not Provided for

S.no. ParticularS As at 31.03.2014 As at 31.03.2013 (Rs.) (Rs.)

a) Counter guarantees given to bankers against Bank guarantees 384,56,90,275 439,66,25,523

b) Indemnity Bonds/Performance Bonds/ Surety Bonds / Corporate 153,88,80,490 121,88,38,492 guarantees given to clients

c) Value Added Tax liability 1,98,16,085 35,39,02,592

d) Demand of stamp duty on Real Estate Project 57,41,980 57,41,980

e) Claims against the company not Acknowledged as debts 50,50,66,711 49,96,25,898

f) Excise duty demand for F.Y. 1998-99 & 2000-2001 14,26,506 39,37,696

g) Service tax demand on alleged

(i) wrong availment of abatement on account of free supply of material 209,23,99,269 203,08,28,774 by the Client*

(ii) Composition scheme 119,38,02,337 87,37,30,527

(iii) Exempted projects 47,84,15,456 46,67,94,442

(iv) Others 47,06,52,422 46,59,86,294

h) Provident fund demand 54,57,34,315 54,57,34,315

Based on legal opinion taken by the Company & discussions with the advocates & consultants, the Company believes that there is fair chance of decisions in its favour in respect of all items listed in (c) to (h) above and hence no provision is considered necessary against the same.The replies/appeals have been fled before appropriate authorities/Courts. Disposal is awaited.

*In one case, the matter has been decided in favour of the company by CESTAT, New Delhi. Further,the larger bench of the Tribunal has decided the matter of non inclusion of value of free of cost material supplied by the client in favour of the appellants in similar cases. In view of the above, no liability is likely to arise.

b. Capital commitments :- Capital contracts remaining to be executed (net of payments) and not provided for Rs. 6,24,67,756/- (Previous Year Rs. 3,31,036,132/-)

32a. The company had executed Common Wealth Games Village Project and raised R.A. bills amounting to Rs. 638,87,67,898/- up to the March, 2011 which have been certified to the extent of Rs. 571,84,67,898/-. The company has further raised bills and lodged claims of Rs. 418,02,86,608/- on the client with respect to additional works on account of deviations and other aspects which is disputed by the client. The client has in turn raised a counter claim on the company for Rs. 250,92,91,002/-. As per the terms of the agreement, both the parties have initiated process of arbitration and appointed arbitrators. The Hon''ble High Court has appointed a third Arbitrator as presiding Arbitrator. The matter is under arbitration. The management is hopeful of getting a favorable award and recovery of dues.

b. On 19th Jan, 2011 Sri Sumeru Realty Pvt. Ltd (SSRPL) Bangalore, a client invoked the Bank Guarantees amounting to Rs. 500,44,760/- and terminated the Contract on 10.03.2011. The Company fled petition in the District and Sessions Court, Bangalore to restrain the Bank for release of Payment against these Bank Guarantees. The Court restrained the Bank to release the payment of Bank Guarantees. The Company has also fled petition in the District Court, Bangalore on 20.3.2011 to secure its claims of Rs. 22,74,79,303/-. As per the terms of the agreement, both the parties have initiated process of arbitration and appointed arbitrators. The Hon''ble High Court has appointed a third Arbitrator as presiding Arbitrator. The matter is under arbitration. The management is hopeful of getting a favorable award.

c. The Construction contract of Festival City, Ludhiana was awarded on 10.03.2006 for a contract value of Rs. 110,00,00,000/- to be completed in a period of 15 months. The project was delayed due to various reasons and under suspension since June 2009. During the course of the execution of the project, the Company had entered in to an agreement to create strategic account & agreement to sell in April 2007 for contiguous office space of 28744 sq. ft for a total sale consideration of Rs. 6,46,74,743/-.

The Client''s bankers have taken over possession of the project (Building) under SARFESI Act and have fled a suit for securitization of space allotted under strategic account.

The recovery of the Company''s dues are dependent upon decision of the judicial process. The management believes a favorable outcome of proceedings and hopeful of recovery of dues.

3. In the opinion of the Board, Current Assets, Loans and Advances are approximately of the value stated if realised in the ordinary course of business. The provisions for depreciation and for all known liabilities are adequate and not excess or short of the amount considered necessary.

4. The Company has initiated the process of obtaining confirmation from suppliers who have registered themselves under the Micro Small Medium Enterprises Development Act, 2006 (MSMED Act, 2006). Based on the information available with the Company, the balance due to Micro Small Enterprises as defined under the MSMED Act, 2006 is as under:

5. Trade receivables, Trade payables and Advances recoverable balances appearing in the Balance Sheet are subject to confirmation.

6. The Company has 100% wholly owned subsidiaries namely M/s. Ahlcon Ready Mix Concrete Pvt. Ltd. (ceased w.e.f. 31.03.2014), Dipesh Mining Pvt. Ltd., Jiwan Jyoti Traders Pvt. Ltd., Paramount Dealcomm Pvt. Ltd., Premsagar Merchants Pvt. Ltd. and Splendor Distributors Pvt. Ltd.

7. The salient features of Service Concession Arrangement w.r.t Bus Terminal and Depot and Commercial Complex at Kota

i) The Company entered into an "Agreement to Develop" with Rajasthan State Road Transport Corporation (RSRTC), grantor, for Development/Construction of Bus Terminal and Depot and Commercial Complex at Kota, on 19th September, 2007. The project was to be completed within 18 months. Delay in approval of drawing by Statutory Authorities affected the progress of the project and delay in completion. During the year company has received revised sanction plan from client for some modification and additional works. The modification and additional works for the second phase are in advance stage and Bus stand depot is likely to be opened in F.Y. 2014-15.

ii) The project cost has been estimated at Rs. 72,00,00,000/- out of which Rs. 65,75,32,244/- have been spent till 31.03.2014. The expenditure incurred has been shown in Balance Sheet under the main head "Fixed Assets" and sub-head "Intangible assets under development" (refer note No. 12). The total expenditure will be amortized over the period, the asset is available for use.

iii) Right to Lease Commercial Complex: The period of lease of right of Commercial complex is 40 years (30 years 10 years extended period) from the date of completion of the project. Thereafter, the Commercial Complex will be handed over to RSRTC.

iv) a) Revenue from advertisement, outside the building shall be shared 50% to RSRTC& 50% to the Licensee. No Revenue sharing from advertisement etc. inside the building.

b) The revenue from commercial complex will be shared with RSRTC in the following manner:

S. details of area/space to license fee upto 36 license fee after 36 no. be used for shops/stalls months months upto the license or other occupants at bus period of 30 years Stand Kota

1) For the space area 15 Sqm Rs. 10/- per Sqm per month Rs. 50/- per Sqm per month or more area with 10% cumulative increase every year.

2) For space less than 15 Sqm Rs. 150/- per month in each Rs. 750/- per month in each case. case with 10% cumulative increase every year.

S. details of area/space to license fee after 30 years no.be used for shops/stalls for a further period of 10 or other occupants at bus years Stand Kota

1) For the space area 15 Sqm License fee effective as on or more area Completion of 30 years and others terms & conditions will remain unchanged.

2) For space less than 15 Sqm License fee effective as on completion of 30 years and others terms & conditions will remain unchanged.

v) Maintenance Obligations: The maintenance of Bus Terminal and Depot is the responsibility of RSRTC. There is a contractual obligation on the company to maintain the commercial complex. The actual maintenance charges will be recovered from the occupants of the commercial complex.

8. Gratuity and otheR poSt employment beneFit plans

Defined Contribution Plan

A) Contribution to Recognised Provident Fund

The Company contributed Rs. 2,38,02,815/- (March 31, 2013 Rs. 3,23,07,375/-) towards provident fund during the year ended March 31, 2014.

b) gratuity plan

The Company has a defined benefit gratuity plan. Gratuity is computed as 15 days salary for every completed year of service or part thereof in excess of 6 months and is payable on retirement/termination/resignation. The enterprises has funded the liability with Life Insurance Corporation (LIC). Company makes provision of such gratuity liability in the books of accounts on the basis of actuarial valuation as per the projected unit credit method.

The following tables summarise the components of net benefit expense recognized in the statement of Profit and loss and amounts recognized in the balance sheet for the Gratuity.

The estimates of future salary increases, considered in Actuarial Valuation, take account of infation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

The overall expected rate of return on Assets is determined based on the market prices prevailing on that date, applicable to the period over which the obligations is to be settled. The Company expects to contribute Rs. 90,27,840 to Gratuity Fund in the next year. (March 31, 2013: Rs. 1,08,31,569 )

c) leave encashment :-

The employees have availed all the leaves benefits and there has been no credits of leave as on balance sheet date, consequently, no provision for the leave encashment has been made.

9. a) The Company has taken various residential, ofce and warehouse premises under operating lease agreements. These are generally not non-cancellable and are renewable by mutual consent. There are no restrictions imposed by Lease Agreement. There are no subleases.

10. Related Party Disclosure:

i) List of Related Parties (as ascertained by the management)

1. Parties under common control & Associates:

M/s. Ahlcon Parenterals (India) Limited (ceased w.e.f. 28.09.2012)

M/s. Tidal Securities Private Ltd.

M/s. Ahlcons India Private Limited

M/s. Capricon Industrials Ltd.

M/s. Ahluwalia Builders & Development Group Pvt. Ltd.

2. Wholly owned Subsidiary Companies

M/s. Ahlcon Ready Mix Concrete Pvt. Ltd. (ceased w.e.f. 31.03.2014)

M/s. Dipesh Mining Pvt. Ltd.

M/s. Jiwanjyoti Traders Pvt. Ltd.

M/s. Paramount Dealcomm Pvt. Ltd.

M/s. Prem Sagar Merchants Pvt. Ltd.

M/s. Splendor Distributors Pvt. Ltd.

3. Key Management Personnel:

Mr. Bikramjit Ahluwalia Chairman & Managing Director

Mr. Shobhit Uppal Dy. Managing Director

Mr. Vikaas Ahluwalia Whole Time Director (Resigned w.e.f. 14.02.2014)

Mrs. Sudershan Walia Whole Time Director (Resigned w.e.f. 30.05.2012)

Mr. Vinay Pal Whole Time Director

4. Relative of Key Management Personnel & Relationship:

Mrs. Sudershan Walia Wife of Chairman & Managing Director

Mrs. Rohini Ahluwalia Daughter of Chairman & Managing Director

Mrs. Rachna Uppal Daughter of Chairman & Managing Director

5. Enterprises over which key management personnel are able to exercise significant infuence. Karam Chand Ahluwalia Hospital & Medical Research Society

Ahluwalia Construction Group (Proprietor Mr. Bikramjit Ahluwalia) Shanti Devi Progressive Education Society

- Previous year figures are given in brackets.

11. Segment Reporting :-

The company is engaged in the business of providing construction related activities where risks and returns in all the cases are similar.

Further the company operates only within India having similar: (i) economic and political conditions, (ii) activities at all project locations and (iii) risk associated with the operations. As such the risks and returns at all project locations are similar.

Therefore the operations of the company fall under single segment as defined in Accounting Standard-17.

12. Change in Accounting Estimate

During the year the company has revised the estimated useful life of the Plant & Machinery (shuttering material) from one year to four year based on technical estimates made by the management. Accordingly depreciation for the year ended 31.03.2014 is lower by Rs. 1,91,23,612/- Had the company continued to use the earlier basis of providing depreciation, the charge to the statement of Profit & Loss for the current year would have been higher by Rs. 1,91,23,612/- and net block of fixed assets would correspondingly have been lower by Rs. 1,91,23,612/-.

13. Previous year Figures

The company has reclassified previous year figures to conform to this year''s classification.


Mar 31, 2013

1. NATURE OF OPERATION

Ahluwalia Contracts (India) Limited (hereinafter referred to as "the Company") is a Public Ltd. Company in India and incorporated under the provisions of the Companies Act, 1956. The Company is primarily engaged in the business of construction activities.

2 a. CONTINGENT LIABILITIES NOT PROVIDED FOR

S. No. Particulars As at 31.03.2013 As at 31.03.2012 (Rs.) (Rs.)

a) Counter guarantees given to ankers against Bank guarantees 439,66,25,523 498,71,41,271

b) Indemnity Bonds/Performance Bonds/ Surety Bonds / Corporate guarantees given to clients 121,88,38,492 113,29,94,715

c) Value Added Tax liability 35,39,02,592 151,21,36,263

d) Demand of stamp duty on Real Estate Project 57,41,980 57,41,980

e) Claims against the company not Acknowledged as debts 49,96,25,898 49,54,04,581

f) Excise duty demand for F.Y. 1998-99 & 2000-2001 39,37,696 46,37,000

g) Service tax demand on alleged wrong availment of abatement on account of free supply of material by the Client 383,73,40,037 315,76,01,821

h) Provident fund demand 54,57,34,315

Based on legal opinion taken by the Company, discussions with the advocates etc, the Company believes that there is fair chance of decisions in its favour in respect of all items listed in (c) to (h) above and hence no provision is considered necessary against the same.

The reply/appeal have been filed before appropriate authority/Court. Disposal is awaited.

b. Capital commitments :- Capital contracts remaining to be executed (net of payments) and not provided for Rs. 33,10,36,132/- (Previous Year Rs. 43,82,81,393/-)

3. a. The company had executed Common Wealth Games Village Project and raised R.A. bills amounting to Rs. 638,87,67,898/- up to the March, 2011 which have been certified to the extent of Rs. 571,84,67,898/-. The company has further raised bills and lodged claims of Rs. 418,02,86,608/- on the client with respect to additional works on account of deviations and other aspects which is disputed by the client. The client has in turn raised a counter claim on the company for Rs. 250,92,91,002/-. As per the terms of the agreement, both the parties have initiated process of arbitration and appointed arbitrators. The Hon''ble High Court has appointed a third Arbitrator as presiding Arbitrator. The matter is under arbitration. The management is hopeful of getting a favorable award.

b. On 19th Jan, 2011 Sri Sumeru Realty Pvt. Ltd (SSRPL) Bangalore, a client invoked the Bank Guarantees amounting to Rs 500,44,760/- and terminated the Contract on 10.03.2011. The Company filed petition in the District and Sessions Court, Bangalore to restrain the Bank for release of Payment against these Bank Guarantees. The Court restrained the Bank to release the payment of Bank Guarantees. The Company has also filed petition in the District Court, Bangalore on 20.3.2011 to secure its claims of Rs. 22,74,79,303/-. As per the terms of the agreement, both the parties have initiated process of arbitration and appointed arbitrators. The Hon''ble High Court has appointed a third Arbitrator as presiding Arbitrator. The matter is under arbitration. The management is hopeful of getting a favorable award.

c. The Construction contract of Festival City, Ludhiana was awarded on 10.03.2006 for a contract value of Rs. 110,00,00,000/

- to be completed in a period of 15 months. The project was delayed due to various reasons and under suspension since June 2009. During the course of the execution of the project, the Company had entered in to an agreement to create strategic account & agreement to sell in April 2007 for contiguous office space of 28744 sq. ft for a total sale consideration of Rs. 6,46,74,743/-.

The Client''s bankers have taken over possession of the project (Building) under SARFESI Act and have filed a suit for securitization of space allotted under strategic account.

The recovery of the Company''s dues are dependent upon decision of the judicial process. The management believes a favorable outcome of proceedings and confident of recovery of dues.

4. In the opinion of the Board, Current Assets, Loans and Advances are approximately of the value stated if realised in the ordinary course of business. The provisions for depreciation and for all known liabilities are adequate and not excess or short of the amount considered necessary.

5. The Company has initiated the process of obtaining confirmation from suppliers who have registered themselves under the Micro Small Medium Enterprises Development Act, 2006 (MSMED Act, 2006). Based on the information available with the Company, the balance due to Micro Small Enterprises as defined under the MSMED Act, 2006 is as under:

6. The Company has 100% wholly owned subsidiaries namely M/s. Ahlcon Ready Mix Concrete Pvt. Ltd., Dipesh Mining Pvt. Ltd., Jiwan Jyoti Traders Pvt. Ltd., Paramount Dealcomm Pvt. Ltd., Premsagar Merchants Pvt. Ltd. and Splendor Distributors Pvt. Ltd.

7. Trade receivables, Trade payables and Advances recoverable balances appearing in the Balance Sheet are subject to confirmation.

8. Loans & Advances in the nature of Loans given to Subsidiary Companies (as required by clause 32 of the listing agreement):

9. Bus Terminal, Depot and Commercial Complex at Kota

i) The Company entered into an "Agreement to Develop" with Rajasthan State Road Transport Corporation (RSRTC), grantor, for Development/Construction of Bus Terminal and Depot and Commercial Complex at Kota, on 19th September, 2007. The project was to be completed within 18 months. Delay in approval of drawing by Statutory Authorities affected the progress of the project and delay in completion. During the year company has received revised sanction plan from client for some modification and additional works. The modification and additional works for the second phase are in advance stage and Bus stand depot is likely to be opened in F.Y. 2013-14.

ii) The project cost has been estimated at Rs. 72,00,00,000/- out of which Rs. 40,21,47,810/- have been spent till 31.03.2013. The expenditure incurred has been shown in Balance Sheet under the main head "Fixed Assets" and sub-head "Intangible Assets Under Development". The total expenditure will be amortized during the useful period taking into account the revenue receivable for remaining useful period.

iii) Right to Lease Commercial Complex: The period of lease of right of Commercial complex is 40 years (30 years 10 years extended period) from the date of completion of the project. Thereafter, the Commercial Complex will be handed over to RSRTC.

iv) a) Revenue from advertisement, outside the building shall be shared 50% to RSRTC& 50% to the Licensee. No Revenue sharing from advertisement etc. inside the building.

b) The revenue from commercial complex will be shared with RSRTC in the following manner:

v) Maintenance Obligations: The maintenance of Bus Terminal and Depot is the responsibility of RSRTC. It will be Contractual obligations to maintain the commercial complex. The actual maintenance charges will be recovered from the occupants of the commercial complex.

10. GRATUITY AND OTHER POST EMPLOYMENT BENEFIT PLANS

Defined contribution plan

A) Contribution to Recognised Provident Fund

The Company contributed Rs 3,23,07,375 (March 31, 2012 Rs.4,41,48,116) towards provident fund during the year ended March 31, 2013.

B) Gratuity Plan

The Company has a defined benefit gratuity plan. Gratuity is computed as 15 days salary for every completed year of service or part thereof in excess of 6 months and is payable on retirement/termination/resignation. The enterprises has funded the liability with Life Insurance Corporation (LIC). Company makes provision of such gratuity liability in the books of accounts on the basis of actuarial valuation as per the projected unit credit method.

The following tables summarise the components of net benefit expense recognized in the statement of profit and loss and amounts recognized in the balance sheet for the Gratuity.

11. RELATED PARTY DISCLOSURE:

i) List of Related Parties (as ascertained by the management)

1. Parties under common control & Associates:

M/s Ahlcon Parenterals (India) Limited (ceased w.e.f. 28.09.2012)

M/s Tidal Securities Private Ltd.

M/s Ahlcons India Private Limited

M/s. Capricon Industrials Ltd.

M/s. Ahluwalia Builders & Development Group Pvt. Ltd.

2. Wholly owned Subsidiary Companies

M/s. Ahlcon Ready Mix Concrete Pvt. Ltd. M/s. Dipesh Mining Pvt. Ltd. M/s. Jiwanjyoti Traders Pvt. Ltd. M/s. Paramount Dealcomm Pvt. Ltd. M/s. Prem Sagar Merchants Pvt. Ltd. M/s. Splendor Distributors Pvt. Ltd.

3. Key Management Personnels:

Mr. Bikramjit Ahluwalia Chairman & Managing Director

Mr. Shobhit Uppal Dy. Managing Director

Mr. Vikaas Ahluwalia Whole Time Director

Mrs. Sudershan Walia Whole Time Director (Resigned w.e.f. 30-05-2012)

Mr. Vinay Pal Whole Time Director

4. Relative of Key Management Personnels & Relationship:

Mrs. Rohini Ahluwalia Daughter of Chairman & Managing Director

Mrs. Rachna Uppal Daughter of Chairman & Managing Director

Mrs. Mukta Ahluwalia Daughter of Chairman & Managing Director

Mrs. Pushpa Rani Sister of Chairman & Managing Director

Mrs. Ram Piari Sister of Chairman & Managing Director

Mrs. Raman Pal Mother of whole time Director

5. Enterprises over which key managerial personnel is able to exercise significant influence.

Karam Chand Ahluwalia Hospital & Medical Research Society Ahluwalia Construction Group (Proprietor Mr. Bikramjit Ahluwalia)

12. Exceptional items comprise of (a) profit on sale of land for Rs. 25,69,40,356/- ( P.Y. Nil ) to Mr. Bikramjit Ahluwalia Chairman & Managing Director (b) provision for doubtful loans and advances of subsidiary company Ahlcon Ready Mix Concrete Pvt. Ltd. Rs. 14,88,83,500/- ( P.Y. Nil ) and (c) provision for diminution in value of long term investment of subsidiary company Ahlcon Ready Mix Concrete Pvt. Ltd. Rs. 10,00,00,000/- ( P.Y. Nil ).

13. SEGMENT REPORTING :-

The company is engaged in the business of providing construction related activities where risks and returns in all the cases are similar.

Further the company operates only within India having similar

1. Economic and political conditions.

2. Activities at all project locations.

3. Risk associated with the operations at locations.

There is no exchange control regulations and underlying currency risk.

As such the risks and returns at all project locations are similar.

Therefore the operations of the company fall under single segment as defined in Accounting Standard-17.

14. PREVIOUS YEAR FIGURES

The company has reclassified previous year figures to conform to this year''s classification.

15. The accompanying notes are an integral part of the financial statements.


Mar 31, 2011

(I) NATURE OF OPERATIONS

Ahluwalia Contracts (India) Limited is primarily in the business of construction of structural and buildings.

1. CONTINGENT LIABILITIES NOT PROVIDED FOR

S.No. Particulars March 31, 2011 March 31, 2010 (Rs.) (Rs.)

a) Counter guarantees given to bankers against Bank guarantees 4,73,24,73,185 4,26,10,06,857

b) Indemnity Bonds/Performance Bonds/ Surety Bonds / Corporate 1,26,43,95,704 1,19,48,99,037 guarantees given to clients

c) Value Added Tax liability 1,50,70,38,998 28,95,57,881

d) Demand of stamp duty on Real Estate Project 57,41,980 57,41,980

e) Claims against the company not Acknowledged as debt 29,33,60,739 29,56,42,739

f ) Excise duty demand for F.Y. 1998-99 & 2000-2001 46,37,000 46,37,000

g) Service tax demand on allegely wrong availment of abatement on 1,96,11,49,906 1,08,37,50,234 account of free supply of material by the Client

h) Income tax demand 5,02,111 -

Based on legal opinion taken by the Company, discussions with the advocates etc, the Company believes that there is fair chance of decisions in its favour in respect of all items listed in (c) to (g) above and hence no provision is considered necessary against the same. The reply/appeal have been filed before appropriate authority/Court. Disposal is awaited.

2 a) The company has executed Common Wealth Games Village Project. The company has raised R.A. bills amounting to Rs. 638,87,67,898/- up to the March, 2010 which have been certified to the extent of Rs. 571,84,67,898/- . The company has further raised bills and lodged the claims of Rs. 418,02,86,608/- on the client with respect to additional works on account of deviations and other aspects. The client has in turn raised a counter claim on the company for Rs.250,92,91,002/-. Negotiations for the settlements are in progress and affect will be given on final settlement as per the policy consistently followed by the Company. The management is of the opinion that the demand raised by the client is not sustainable.

b) On 19th Jan, 2011 Sri Sumeru Realty Pvt. Ltd (SSRPL) Bangalore, a client invoked the Bank Guarantees amounting to Rs. 500,44,760/- and terminated the Contract on 10.03.11.The Company filed petition in the District and Sessions Court, Bangalore to restrain the Bank for release of Payment against these Bank Guarantees. The Company has also filed application to secure claims of Rs. 22,74,79,303/- The Court restrained the Bank to release the payment of Bank Guarantees.

The matter is being pursued as per direction of the Court. The effect for recovery of dues and assets at site will be accounted for on final settlement/ court order.

c) The Construction of Festival City, Ludhiana was awarded on 10.03.2006 for a contract value of Rs. 110,00,00,00/- for the period of 15 months. . The project was delayed due to various reasons and under suspension since June 2009. During the course of the execution of the project, the Company had entered in to an agreement to create strategic account & agreement to sell in April 2007 for contiguous office space of 28744 sq ft. for a total sale consideration of Rs. 6,46,74,743/-.

The Client's bankers have taken over possession of the project (Building) under SARFESI Act and have filed a suit for recovery in Debt Recovery Tribunal (DRT).

The Company has filed separate petition dated 21/24.06.2010 with DRT II u/s 17 (3) of SARFESI Act (i) to set- aside the possession notice for the space 28744 Sqft (ii) to stay all actions with regard space 28744 Sqft already allotted to the Company by the Client. The matter as such is sub judice.

The recovery of the Company's dues are dependent upon decision of the judicial process. The management is of the opinion that the dues as per books of account are fully recoverable.

3. Capital commitments :- Capital contracts remaining to be executed (net of payments) and not provided for Rs. 58,39,37,834/- (Previous Year Rs. 66,86,43,984/-)

4. In the opinion of the Board, Current Assets, Loans and Advances are approximately of the value stated if realised in the ordinary course of business. The provisions for depreciation and for all known liabilities are adequate and not excess of the amount considered necessary.

5. The Company has initiated the process of obtaining confirmation from suppliers who have registered themselves under the Micro Small Medium Enterprises Development Act, 2006 (MSMED Act, 2006). Based on the information available with the Company, the

6 The Company has 100% subsidiaries namely of M/s. Ahlcon Ready Mix Concrete Pvt. Ltd., Dipesh Mining Pvt. Ltd., Jiwan Jyoti Traders Pvt. Ltd., Paramount Dealcomm Pvt. Ltd., Premsagar Merchants Pvt. Ltd. and Splendor Distributors Pvt. Ltd. As a result of which these companies have become wholly owned subsidiaries of the company.

7 (a) Sundry Debtors, Advances Recoverable and Sundry Creditors balances appearing in the Balance Sheet are subject to confirmation. (b) Advance payments received towards contracts are secured by Bank Guarantees and/or indemnity bonds issued by the company.

8 (a) Fixed Deposit Receipts to the tune of Rs. 44,20,35,886/- (P.Y. Rs. 36,59,44,451/-) along with interest accrued Rs. 2,83,78,990/- (P.Y.

Rs.3,01,57,404/-) have been pledged with the Company's Bankers as margin for Bank Guarantees, Letters of Credits, Security Deposit under lien for Loans obtained from Banks and FDRs are deposited with the court for legal cases against the company.

(b) Working Capital Facilities availed by the company

1) From Canara Bank are secured by way of

a) Personal guarantee of (i) Mr. Bikramjit Ahluwalia (ii) Mr. Shobhit Uppal, (iii) Mrs. Sudershan Walia and (4) Mr. Vikaas Ahluwalia.

b) First Paripassu charge on Stock and Book Debts.

c) Equitable mortgage of Commercial property at Plot. No.A-177,Okhla Industrial Area, Phase-I, New Delhi- Rs. 2,28,00,000/-, valuation report dated 3.3.2007, Equitable mortgage of Commercial property at Plot No. 4, Community Centre, Saket, New Delhi - Rs. 9,76,00,000/- valuation report dated 8.12.2007, Equitable mortgage of Residential property at Plot No. B-7, Saket, New Delhi - Rs. 5,79,00,000/-, valuation report dated 3.3.2007.

2) From Yes Bank Limited are secured by way of

a) First paripassu charge on the current assets of the company.

b) Personal guarantee of (1) Mr. Shobhit Uppal and (2) Mr.Vikaas Ahluwalia

c) Demand Promissory Note for Rs. 20,00,00,000/-.

3) From Standard Chartered Bank are secured by way of

a) First paripassu charge on the current assets of the company along with other Banks in multiple banking arrangements

b) Personal guarantee of (i) Mr. Bikramjit Ahluwalia (ii) Mr. Shobhit Uppal (iii) Mrs. Sudershan Walia and (iv) Mr. Vikaas Ahluwalia.

4) From Axis Bank are secured by way of

a) First paripassu charge on the current assets of the company along with other banks in Multiple Banking Arrangement.

b) Personal Guarantee of (i) Mr. Bikramjit Ahluwalia (ii) Mr. Shobhit Uppal (iii) Mrs. Sudershan Walia (iv) Mr. Vikaas Ahluwalia.

5) From Kotak Mahindra Bank Ltd. are secured by way of First pari passu charge on all existing and future current assets of the company.

a) Personal guarantee of (i) Mr. Bikramjit Ahluwalia (ii) Mr. Vikaas Ahluwalia.

c) Undated cheque in bank's format for the facility amount.

6) From Induslnd Bank Ltd. are secured by way of

a) First paripassu charge on current assets of the company

b) Personal guarantee of (i) Mr. Bikramjit Ahluwalia (ii) Mr. Shobhit Uppal (iii) Mrs. Sudershan Walia and (iv) Mr. Vikaas Ahluwalia.

7) From Citi Bank N.A. are secured by way of

a) First paripassu charge on present and future stocks and book debts of the company.

b) Personal guarantee of (i) Mr. Bikramjit Ahluwalia and (ii) Mrs. Sudershan Walia

c) Demand Promissory Note and letter of continuity for Rs. 58,00,00,000/-.

8) From Bank of Maharashtra are secured by way of

a) First paripassu charge on all current assets of the company alongwith other multiple member banks.

b) Personal guarantee of (i) Mr. Bikramjit Ahluwalia (ii) Mr. Shobhit Uppal (iii) Mrs. Sudarshan Walia (iv) Mr. Vikaas Ahluwalia.

c) Pledge of 15,00,000 Equity shares of the company belonging to the promoters of the Company.

9) From IDBI Bank Ltd.are secured by way of

a) First paripassu charge on entire current assets of the company along with other banks in multiple banking arrangement.

b) Personal Guarantee of (i) Mr.Bikramjit Ahluwalia (ii) Mrs. SudarshanWalia.

10) From State Bank of Patiala are secured by way of

a) First paripassu charge on the entire current assets of the company along with other banks under multiple banking arrangement.

b) Personal Guarantee of (i) Mr. Bikramjit Ahluwalia (ii) Mr. Shobhit Uppal (iii) Mrs. Sudarshan Walia (iv) Mr. Vikaas Ahluwalia.

11) From ING Vysya Bank Ltd.are secured by way of

a) First paripassu charge on the entire present and future current assets of the company with other banks.

b) Personal Guarantee of (i) Mr. Bikramjit Ahluwalia (ii) Mrs. Sudarshan Walia (iii) Mr. Shobhit Uppal (iv) Mr.Vikaas Ahluwalia.

12) From Punjab & Sind Bank are secured by way of

a) First paripassu charge on current assets both present & future viz Raw Materials, Semi finished and finished goods, Consumables, Stores and Spares, Book Debts etc.with participating Lenders.

b) Pledge of 102,71,380 equity shares of the company of the promoters.

c) Personal Guarantee of (i) Mr. Bikramjit Ahluwalia (ii) Mrs. Sudarshan Walia (iii) Mr. Vikaas Ahluwalia.

13) From ICICI bank, Fund based facilities for Rs. 10,00,00,000/- are secured by way of

a) First Paripassu charge on entire stocks and book debts, both present and future

b) Personal Guarantee of (i) Mr.Shobhit Uppal (ii) Mr.Vikaas Ahluwalia

14) From ICICI Bank Ltd., Bank Guarantee facilities of Rs. 50,00,00,000/- is secured by way of Personal guarantee of (i) Mr. Shobhit Uppal (ii) Mr.Vikaas Ahluwalia

15) From Bank of India are secured by way of

a) First Paripassu charge on entire current assets of the company along with other working capital lenders.

b) Personal Guarantee of (i) Mr.Bikramjit Ahluwalia (ii) Mrs. Sudershan Walia

16) From G.E. Capital Services India for working capital/general corporate purpose are secured by way of

a) Hypothecation of specified equipments.

b) Demand promissory Note for Rs. 7,00,00,000/- c) Undated cheque for Rs. 7,00,00,000/- (c) Term Loan facilities availed by the company -

1) From Standard Chartered Bank is secured by way of

a) First and exclusive charge of assets financed by the bank.

b) Personal guarantee of Mr. Bikramjit Ahluwalia

c) Post dated cheque for repayment of interest and principal.

(d) 1) Term Loan facilities taken for machinery / vehicle from, ICICI Bank Ltd., HDFC Bank Ltd. are secured by way of hypothecation

of specified machinery / vehicle.

2) Term loan facilities taken for vehicles from Bank of Maharashtra are secured by way of hypothecation of specified vehicles and personal guarantee of Mr. Bikramjit Ahluwalia

(e) Other Term Loan from TML Financial Services Ltd., L&T Finance Ltd., Magma Fincorp Ltd., SREI Equipments Finance Pvt. Ltd., First Leasing Company of India Ltd. are secured by way of hypothecation of specified machinery / vehicle.

(f) Bank Guarantees Facilities availed from -

1) Allahabad Bank is secured by way of

a) First paripassu charge/ Hypothecation charge over entire current assets of the company both present and future.

b) Personal Guarantee of (i) Mr. Bikramjit Ahluwalia (ii) Mrs. Sudershan Walia (iii) Mr. Shobhit Uppal (iv) Mr. Vikaas Ahluwalia

2) ICICI Bank Ltd. of Rs. 90,00,00,000/- is secured by way of

a) First paripassu charge on entire stocks and book debts, both present and future

b) Personal Guarantee of (i) Mr. Bikramjit Ahluwalia (ii) Mrs. Sudershan Walia.

3) Syndicate bank is secured by way of 100% margin of Rs. 55,00,000/-.

9. (i) Loan to Body Corporate (shown under schedule 11) due from subsidiary companies includes Rs. 4,72,25,162/- (P.Y. Rs. 4,72,25,162/-) (maximum amount due at any time during the year Rs. 4,72,25,162/- (P.Y. Rs. 10,27,60,649/-).

(ii) Sundry creditors includes amount due to subsidiary companies in which Directors are interested Rs. 2,67,14,172/- (P.Y. Rs. 1,98,46,806/-) (maximum amount due at any time during the year Rs. 2,89,22,104/-) (P.Y. Rs. 2,39,84,369/-).

(iii) Sundry debtors includes amount due from companies in which Directors are interested Rs. 3,03,750/- (P.Y. Rs.60,750/-) (Maximum balance at any time during the year Rs. 3,03,750/- (P.Y. Rs. 1,04,406/-).

(iv) Sundry debtors includes amount Rs. 1,83,00,582/- (P.Y. Rs. 51,29,325/-) (Maximum balance at any time during the year Rs. 1,83,00,582/- (P.Y. Rs. 51,29,325/-) due from Chairman & Managing Director Mr. Bikramjit Ahluwalia / proprietary concerns of Mr. Bikramjit Ahluwalia.

(v) Advance recoverable in cash or in kind or for value to be received includes amount due from companies in which directors are interested Rs. 3,79,60,273/- (P.Y. Rs.6,03,79,801/-) Maximum balance due at any time during the year Rs. 15,70,33,188/- (P.Y. Rs.18,38,51,952/-).

11. A sum of Rs. 45,781/- Debit (P.Y. Rs. 75,652/- Debit), relating to earlier years have been considered in respective heads of accounts.

12. Bus Terminal and Depot and Commercial Complex at Kota

i) The Company entered into an "Agreement to Develop" with Rajasthan State Road Transport Corporation (RSRTC), grantor, for Development/Construction of Bus Terminal and Depot and Commercial Complex at Kota, on 19th September, 2007. The project was to be completed within 18 months. Delay in approval of drawing by Statutory Authorities effected the progress of the project and delay in completion. In a meeting held on 13.06.2011, with the Statutory Authorities and RSRTC grantor, it was decided that the project shall be completed and no penalty shall be levied till Dec. 2011.

ii) The project cost has been estimated Rs. 72,00,00,000/- out of which Rs. 14,75,74,583/- have been spent till 31.03.2011. The expenditure incurred has been shown in Balance Sheet under the main head "Fixed Assets" and sub-head "Capital Work in Progress" as "Intangible Asset". The total expenditure will be amortised during the useful period taking into account the revenue receivable for remaining useful period.

iii) Right to Lease Commercial Complex: The period of lease of right of Commercial complex is 40 years (30 years 10 years extended period) from the date of completion of the project. Thereafter, the Commercial Complex will be handed over to RSRTC.

iv) a) Revenue from Advertisement, outside the building shall be 50% to RSRTC. No Revenue sharing from Advertisement etc. inside the building.

v) Maintenance Obligations: The maintenance of Bus Terminal and Depot is the responsibility of RSRTC. It will be Contractual obligations to maintain the commercial complex. The actual maintenance charges will be recovered from the occupants of the commercial complex.

13. Employee Benefits:

a) Effective from 1st January'2007, the Company adopted Accounting Standard 15 (Revised 2005) on "Employee Benefits" issued by the Institute of Chartered Accountant of India.

16. a) Current tax is calculated in accordance with the tax laws applicable to the current financial year and accordingly charged to the profit and loss account for the year.

17. The Company has taken various residential, office and warehouse premises under operating lease agreements. These are generally not non-cancellable and are renewable by mutual consent on mutually agreed terms. There are no restrictions imposed by Lease Agreement. There are no subleases.

18. Related Party Disclosure:

i) List of Related Parties (as ascertained by the management)

1. Parties under common control & Associates: M/s Ahlcon Parenterals (India) Limited

M/s Tidal Securities Private Ltd.

M/s Ahlcons India Private Limited

M/s. Capricon Industrials Ltd.

M/s. Ahluwalia Builders & Development Group Pvt. Ltd.

2. Parties under Subsidiary Companies M/s. Ahlcon Ready Mix Concrete Pvt. Ltd. M/s. Dipesh Mining Pvt. Ltd.

M/s. Jiwanjyoti Traders Pvt. Ltd. M/s. Paramount Dealcomm Pvt. Ltd. M/s. Prem Sagar Merchants Pvt. Ltd. M/s. Splendor Distributors Pvt. Ltd.

3. Key Management Personnels:

Mr. Bikramjit Ahluwalia Chairman & Managing Director

Mr. Shobhit Uppal Dy. Managing Director

Mr. Vikaas Ahluwalia Whole Time Director

Mrs. Sudershan Walia Whole Time Director

Mr. Vinay Pal Whole Time Director (Appointed on 14.08.2010)

4 Relative of Key Management Personnels & Relationship:

Mrs. Rohini Ahluwalia Daughter of Chairman & Managing Director

Mrs. Rachna Uppal Daughter of Chairman & Managing Director

Mrs. Mukta Ahluwalia Daughter of Chairman & Managing Director

Mrs. Pushpa Rani Sister of Chairman & Managing Director

Mrs. Ram Piari Sister of Chairman & Managing Director

Mrs. Raman Pal Mother of Whole Time Director

5. Enterprises over which key managerial personnel is able to exercise significant influence.

Karam Chand Ahluwalia Hospital & Medical Research Society

21. The Company is having only one business segment - Construction activities, hence no segment reporting is applicable.

22. Additional information pursuant to the provisions of paragraph 3, 4-C and 4-D of part II of Schedule VI of the Companies Act, 1956:

The company is mainly engaged in the business of construction. Keeping in view the multifarious jobs at different sites and practical difficulties in measuring building material, individual details with regard to quantities of stock, production, turnover and consumption of raw materials are not given. Also the diverse nature of contracts undertaken by the Company and wide variety of material consumed, the additional information has been furnished to the extent practicable.

 
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