Mar 31, 2018
NOTE
1. BACKGROUND & OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES
A. CORPORATE INFORMATION
- Ansal Housing and Construction Limited referred to as (âthe Companyâ or âAnsal Housingâ) engaged in the business of promotion, construction and development of integrated townships, residential and commercial complexes, multi-storeyed buildings, flats, houses, apartments, shopping malls etc.
- The Company is a public limited company incorporated and domiciled in India. The address of its registered office 606, Indra Prakash, 21 Barakhamba Road, New Delhi-110 001 having Corporate Identity Number: L45201DL1983PLC016821. The Company is listed on the National Stock Exchange of India Limited. (NSE) and BSE Limited (BSE).
iii. Legal formalities relating to conveyance of freehold building having gross value of Rs. 638.75 Lakh (as at 31st March, 2017: Rs. 638.75 Lakh, as at 1st April, 2016 Rs. 638.75 Lakh) and lease deed of lease hold building having gross value of Rs. 1218.49 Lakh (as at 31st March, 2017: Rs. 1218.49 Lakh, as at 1st April, 2016: Rs. 1218.49 Lakh) are pending execution.
iv. For details of Assets charged, Refer Note-16 and Note - 20
2.1. The average credit period is 21 to 45 days. For payments, beyond credit period, interest is charged as per contractual rate on outstanding balances which has been accounted for as per the policy of the company.
2.2. The real estate sales are made on the basis of cash down payment or construction linked payment plans. In case of construction linked payment plans, invoice is raised on the customer in accordance with milestones achieved as per the flat buyer agreement. The final possession of the property is offered to the customer subject to payment of full value of consideration. Accordingly, the Company does not expects any credit losses.
3.1 Fixed Deposits with Banks includes deposits of Rs. Nil (Previous year Rs. Nil) with maturity of more than 12 months.
3.2 Cash and Bank balances includes restricted cash balance of Rs.1312.95 Lakh (as at 31st March 2017: Rs.1342.19 Lakh). The restrictions are primarily on account of cash and bank balances held as margin money, deposit against guarantees, unpaid dividends and escrow accounts.
3.3 The deposit maintained by the Company with banks can be withdrawn at any point of time without prior notice or penalty on the principal.
4.1 Terms/ Rights attached to equity shares
The Company has only one class of equity shares having a par value of Rs.10/- per share. Each holder of equity shares is entitled to one vote per share. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation of the Company, the holders of equity shares would be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of the equity shares held by the shareholders.
4.2 Equity Shares bought back and extinguished during the last five years
- 3,97,296 Equity Shares bought back during the financial year 2012-13
4.3 The Company has not issued any preference share capital
5.1 Nature and purpose of reserves:
- Capital Reserve - The Company has transferred the amount received on forfeiture of partly paid share/warrant in Capital reserve.
- Capital Redemption Reserve - The Company has transferred a part of the net profit of the company to the Capital Redemption Reserve in previous years on buy back of equity shares
- Securities Premium Account - The amount received in excess of the face value of the equity share issued by the company is recognised in securities premium reserve.
- General Reserve - The Company has transferred a part of the net profit of the company to the general reserve in previous years.
- Retained earnings - Retained earnings are profits of the company earned till date less transferred to general reserve.
5.2 The Company had revalued building on 31st March, 1996 on the basis of approved valuer report and had balance of Rs. 606.21 Lakh in revaluation reserve on the date of transition. On transition (i.e. 1st April, 2016) company has elected to Para D7AA of Ind AS-101 as deemed cost due to which such revaluation reserve has been transferred to general reserve.
NOTES:
6.1 Term Loan from Bank referred above to the extent of:
- Rs. Nil (as at 31st March,2017: Rs. Nil and as at 1st April,2016: Rs. 3400.00 Lakh) are secured by way of mortgage of project land owned by the Company and its subsidiaries situated at Gurgaon and hypothecation of finished goods and receivables of Gurgaon Project, assignment of receivables of Alwar project, pledge of term deposit, pledge of shares of a subsidiary company and pledge of part of promoters shareholding in the Company.
6.2 Bank Overdraft referred above to the extent of:
- Rs. 316.38 Lakh (as at 31st March,2017: Rs. 414.38 Lakh and as at 1st April,2016: Rs.490.33 Lakh) overdraft facility is secured by way of mortgage of unsold units owned by the Company in one of its project at Ghaziabad and guaranteed by promoter directors.
6.3 Term Loan from Corporate Bodies referred above to the extent of:
- Rs. 18384.62 Lakh (as at 31st March,2017: Rs. 17055.68 Lakh and as at 1st April,2016: Rs.19055.81 Lakh) are secured by way of mortgage of project land owned by the Company and its subsidiaries situated at Agra, Indore, Meerut and Gurgaon, mortgage of building situated at Noida, mortgage of premises situated at Delhi owned by promoter directors and their families, assignment of receivables of Agra, Indore, Meerut and certain Gurgaon projects and pledge of part of promoters shareholding in the Company and guaranteed by promoter directors.
The Ind AS adjustment on the above loan is Rs. 240.35 Lakh (as at 31st March, 2017 Rs. 360.83 Lakh and as at 1st April, 2016 Rs. 125.31 Lakh)
- Rs. 709.14 Lakh (as at 31st March,2017: Rs. 967.49 Lakh and as at 1st April,2016: Rs. 787.77 Lakh) are secured by way of mortgage of Commercial Plot owned by the Company, Residential plot owned by promoter situated at Noida and Palam Vihar respectively, unsold units in the project at Meerut and guaranteed by promoter director.
- Rs. 8456.14 Lakh (as at 31st March,2017: Rs. 8117.56 Lakh and as at 1st April,2016: Rs.9375.00 Lakh) are secured by way of mortgage of land owned by the Company and its subsidiaries situated at Yamunanagar and Amritsar and assignment of receivables of Yamunanagar Project and guaranteed by promoter directors.
- Rs.22.67 Lakh (as at 31st March,2017: Rs. 485.67 Lakh and as at 1st April,2016: Rs.818.00 Lakh) are secured by way of mortgage of land owned by the Company and its subsidiaries situated at Jhansi and Ghaziabad and assignment of receivables of Jhansi and Ghaziabad Projects and guaranteed by promoter directors.
- Rs. 13083.82 Lakh (as at 31st March,2017: Rs. 11937.97 Lakh and as at 1st April,2016: Rs. 3738.87 Lakh) are secured by way of mortgage of land owned by the Company and its subsidiaries situated at Gurgaon, assignment of receivables of Gurgaon Projects, pledge of term deposit and pledge of shares of a subsidiary company and associate company and guaranteed by promoter directors.
The Ind AS adjustment on the above loan is Rs. 704.68 Lakh (as at 31st March, 2017: Rs. 1253.28 Lakh and as at 1st April, 2016: Rs. NIL)
- The rate of interest are as per the sanction letter/agreement.
6.4 Vehicle/ Equipment Loan from Bank/ Corporate Bodies referred above are secured by way of hypothecation of respective vehicle/ construction equipment.
6.5 Term Loan from Bank referred above to the extent of: Rs. 316.38 have been guaranteed by the promoter (As at 31st March,2017: Rs. 414.38 Lakh and As at 1st April, 2016: Lakh directors. Rs.3890.33 Lakh)
6.6 Term Loan from Corporate Bodies referred above to the extent of: Rs.. 761.33 have been guaranteed by the promoter (As at 31st March,2017 Rs. 38290.73 Lakh and As at 1st April, Lakh directors. 2016 Rs. 33775.45 Lakh) Rs. 21,562.63 have been guaranteed by the subsidiary (As at 31st March,2017 Rs.20541.20 Lakh and As at 1st April, Lakh companies. 2016 Rs.13931.87 Lakh)
6.7 Public Deposits:
The Company has discontinued acceptance / renewal of fixed deposits w.e.f. 1st April, 2016. Due to recession in the real estate industry resulting in financial crunch, the Company approached the National Company Law Tribunal (NCLT), New Delhi, in July 2016 under section 74(2) of the Companies Act, 2013 and has received the approval for extension of time to repay the deposits vide NCLTâs order dated 3rd October, 2016. The total deposits at the time of Companyâs application to the NCLT amounting to Rs.8457.47 Lakh are generally being repaid by the Company as per the terms of NCLT Orders though there are some overdue amounts. However, the NCLT vide its order dated 1st December,2017 has permitted to pay Rs. 125.00 Lakh per month including hardship cases and same scheme has been extended by NCLT till July 2018 vide its latest order dated 10.05.2018. The Company is in the process of complying with the above NCLT orders. The outstanding amount of public deposits as on 31st March, 2018 has been classified into current and non current after considering extension granted by the NCLT.
6.8 Loan under Restructuring:
Long term loan from IFCI have been restructured on 17th November 2017 with cut-off date of 15th July 2017. The Company is entitled to reliefs and concessions granted by the financial institution effective from the cut-off date. Key terms of restructuring is as under:
- Tenure : 8 Years and 6 Months
- Additional moratorium of 3 months from cut-off date on principal repayments.
- Principal Repayment of Loans: 99 structured monthly installments starting from 15th October, 2017 till 15th December, 2025
- Interest obligation aggregating Rs. 518.13 Lakh on cut-off date was converted into Funded Interest term Loan (FITL) and repayable in 21 structured monthly installments starting from 15th August, 2017
NOTES:
9.1 Working Capital Loans from Scheduled Banks are secured by charge over stocks of materials, unsold finished stock, construction work-in-progress, book-debts of the Company, Commercial Flats at Indra Prakash Building, Commercial Plot at Parwanoo, Residential Plot at Lucknow, Residential Plots at Gurgaon owned by director & their family, Unsold area & Corporate Office at Ghaziabad and have been guaranteed by promoter directors & their family. The rate of interest are as per the sanction letter.
9.2 Term Loan from Corporate Bodies of Rs. Nil (as at 31st March,2017: Rs. Nil and as at 1st April,2016 Rs. 500.00 Lakh) is secured by way of mortgage of project land owned by a Subsidiary Company at Gurgaon. The rate of interest are as per the agreement/ sanction letter.
10.1 Refer Note 47 for Trade payables which are going to be settled within 12 months from the reporting date & for information about liquidity risk and market risk.
NOTE:
11.1 The Other payables referred above includes Brokerage Provision, Customer Refund, payable to Associates Co. and Staff Imprest. Further Customer Refund Includes Rs. 698.52 Lakh (as at 31st March 2017 Rs. 100.77 Lakh and as at 01st April, 2016 Rs. 100.77 Lakh) payable to subsidiary company and Rs. 110.52 Lakh (as at 31st March 2017 Rs. 19.14 Lakh and as at 01st April 2016 Rs. 10.00 Lakh) payable to other related parties.
11.2 Other payables also includes Rs. 3.90 Lakh (as at 31st March,2017: Rs. 3.95 Lakh and as at 1st April, 2016: Rs. 5.27 Lakh) payable to subsidiary Companies.
11.3 Refer Note 47 for other financial liabilities which are going to be settled within 12 months from the reporting date & for information about liquidity risk and market risk.
NOTES:
12.1 The Advances from Customers referred above includes Rs. 2,986.32 Lakh (as at 31st March,2017: Rs.2,927.72 Lakh and as at 31st March,2016: Rs. 2,899.10 Lakh) received from subsidiary Companies and Rs.733.98 Lakh (as at 31st March,2017 Rs. 1,636.65 Lakh and as at 31st March,2016: Rs. 1,525.21 Lakh) from other related parties.
12.2 Advances from customers are against sale of real estate projects and generally are not refundable except in the case of cancellation of bookings.
a) In respect of certain assessment years upto 2006-07, the Delhi High Court has allowed the appeal of the Income Tax Department filed against the order of the Income Tax Appellate Tribunal, New Delhi, holding that the Notional Annual Letting Value of Flats/Commercial spaces etc. lying unsold in the closing stock is liable to tax under the head âIncome from House Propertyâ. Based on the High Court Order, the tax department has created a demand of Rs.1232.34 Lakh (as at 31.03.2017: Rs. 1217.24 Lakh, as at 01.04.2016 Rs.1112.67 Lakh) against the Company and a further liability of Rs.360.42 Lakh (as at 31.03.2017: Rs.360.42 Lakh, as at 01.04.2016 Rs.442.62 Lakh) is estimated in respect of cases which are pending before the ITAT/High Court. The Company has filed special leave petition before the Supreme Court against the order of the Delhi High Court which has been admitted by the Supreme Court.
b) In respect of certain assessment years, Sales tax authorities have held that construction of properties by developer/ builder is liable to sales tax / VAT and have raised a demand of Rs.1211.06 Lakh (as at 31.03.2017: Rs.1066.37 Lakh, as at 01.04.2016 Rs. 825.21 Lakh) against the Company which are being disputed by the Company before the appellate authorities. Against these demands, the Company has paid Rs.634.47 Lakh (as at 31.03.2017: Rs.612.72 Lakh, as at 01.04.2016 Rs.482.57 Lakh) under protest and the balance demand has been stayed by the authorities. The management is of the view that in case the Company becomes liable to pay sales tax /VAT, the same will be recovered from the customers to whom these properties have been sold and there is no contingent liability in this respect. The Company has started collecting VAT from Customers on provisional basis.
c) The Revenue Authorities of different states have raised demands of Rs.709.84 Lakh (as at 31.03.2017: Rs.691.70 Lakh, as at 01.04.2016 Rs.691.70 Lakh) towards deficiency in Stamp Duty on purchase of land / registration of agreements. Against these demands, the Company has paid Rs.233.92 Lakh (as at 31.03.2017: Rs.214.59 Lakh, as at 01.04.2016 Rs.214.59 Lakh) under protest and the balance demand has been stayed by the appellate authorities. Pending final decision in the matter, no provision has been considered necessary.
d) The service tax demand received by the company from the Service Tax Authorities has been reduced to NIL, (as at 31.03.2017: Rs.183.78 Lakh, as at 01.04.2016 Rs.271.31 Lakh) on transfer changes / administrative charges / processing charges recovered from the customers for the period upto March 2010. The Company had filed an appeal with Custom, Excise and Service Tax Appellate Tribunal (CESTAT), New Delhi. The CESTAT had deleted the penalty levied by the service tax department and reduced the demand to Rs.135.73 Lakh. The Company has filed an application before CESTAT for rectification and rehearing of the appeal as the written representation of the Company were not considered by the CESTAT. The CESTAT wide its order dated 27.09.2017 has accepted the appeal of the company and reduced the above demand of Rs.135.73 Lakh to NIL. During the previous year, the company had received a further demand of Rs.48.05 Lakh for the period April 2010 to June 2012 on similar matter against which the Company has filed an appeal before the CESTAT, New Delhi. The CESTAT wide its order dated 17.11.17 has accepted the appeal of the company and reduced the above demand of Rs.48.05 Lakh to NIL.
In respect of various claims against the Company disclosed above, it has been advised that it has a reasonably good case to succeed at various appellate authorities and hence does not expect any material liability when the cases are finally decided.
iii) In respect of block assessment for the period 01April 1989 to 10 February 2000, Income Tax Appellate Tribunal (ITAT) has given full relief to the company and rejected departments ground of appeal for tax claim of Rs.127.07 Lakh (as at 31.03.2017: Rs.127.07 Lakh, as at 01.04.2016: Rs.127.07 Lakh). Further, in respect of assessment of certain years, demands had been raised by the Income Tax Department against the Company amounting to Rs.723.45 Lakh (as at 31.03.2017: Rs.723.45 Lakh, as at 01.04.2016 Rs.786.82 Lakh) approx by disallowing deduction under section 80(IB) of the Income Tax Act, 1961 and other matters. The appeal filed by the Company have been decided in its favour by CIT (Appeals) / ITAT / High Court. The tax department has gone for further reference in the above matters to ITAT/High Court/Supreme Court. The Management has been advised that it has a good case to succeed and no tax liability is likely to be arise in these cases.
iv) Due to depressed market conditions, in some of the cases sale consideration received on sale of plots / flats/ apartments is lower than the value adopted or assessed by the regulatory authorities for the purpose of payment of stamp duty (circle rate) and could attract the provisions of section 43CA of the Income Tax Act, 1961. For the year Assessment Year 2014-15 & 2015-16, the assessing officer has added the difference between sale consideration and circle rates to the income of the Company and created additional demand of Rs.773.04 Lakh (Previous year Rs.222.76 Lakh) . The Company has opted to refer the matter to Valuation Cell of the Income Tax Department for assessing the fair value of the properties sold. The final tax liability under section 43CA can not be ascertained at this stage as the Income Tax Department has not completed the valuation exercise. Such dispute is likely to arise for the subsequent financial years also.
13.1 Capital and Other Commitments
i) Estimated amount of contracts remaining to be executed on capital account (net of advances) and not provided for Rs.NIL (Previous year Rs NIL).
ii) The Company has entered into joint development agreements with owners of land for its construction and development. As stipulated under the agreements, the Company is required to share in area/ revenue from such development in exchange of undivided share in land as stipulated under the agreements. As on March 31,2018 the Company has paid Rs.8116.01 Lakh (as at 31.03.2017: Rs.8506.67 Lakh, as at 01.04.2016: Rs.8319.34 Lakh) as deposits/ advances against the joint development agreements. Further, the Company has given advances for purchase of land. Under the agreements executed with the land owners, the Company is required to make further payments based on terms/ milestones stipulated in the agreement. The future commitment in respect of purchase of land, to the extent quantifiable, amounts to Rs. NIL/- (as at 31.03.2017: Rs.Nil, as at 01.04.2016: Rs.225.00 Lakh).
14. The Company did not have any long term contracts including derivative contracts for which there are any material foreseeable losses.
15. There have been no delays in transferring amounts required to be transferred to the Investor Education and Protection Fund.
16. The Company has no outstanding derivative or foreign currency exposure as at the end of the current year and previous year.
17. Inventory of Land includes Rs.830.99 Lakh (as at 31st March,2017: Rs.880.57 Lakh and as at 1st April,2016: Rs.1267.39 Lakh) acquired by subsidiary companies/ others. The land is registered in the name of the subsidiary companies/ others but is under the possession and control of the Company for development and sale of Real Estate Projects in terms of collaboration agreement with these companies.
18. The Company is engaged primarily in the business of Real Estate development and also running Hospitality Business. The Board for the purpose of resource allocation and assessment of segment performance focus of real estate and hospilality division However, there are no separate reportable segments as per criterion set out under Ind AS 108 on âSegment Reportingâ in the Company.
19. The Company has opted for âcomposition schemeâ notified by the State of Haryana with effect from 1st April, 2014 under which VAT is payable at compounded lumpsum rate of 1% plus surcharge of 5%. Under the scheme, the Company is debarred from recovering the VAT paid from the customers. The VAT payable under the said scheme for the period 1.4.2014 to 30.06.2017 amounting to Rs.1126.36 Lakh (including interest) has been provided in the books of account of the Company and charged to project expenses of the related projects.
20. The Company has an investment of Rs.491.67 Lakh (as at 31 March, 2017: Rs.491.67 Lakh and as at 1st April,2016: Rs.491.67 Lakh) in a wholly owned subsidiary company in Sri Lanka by way of equity shares. The subsidiary company had filled an arbitration claim against the board of investment of Sri lanka (BOI) which has been withdrawn during the year and company gone for settlement. The board of Investment has terminated the agreements for development of integrated township in sri lanka between the subsidiary company and BOI. During the year, the management of the susidiary company written off all work in progress amounting Rs.1118.24 Lakh. Net worth of the company is Rs. (8.45) Lakh. Now the subsidiary does not have enough assets to redeem the said investment but management of company is of the opinion that they will able to redeem the said investment to the settlement and write down of investment is not required at this stage.
21. The disclosures of Employee Benefits as defined in Indian Accounting Standard 15 are given below:
A. Defined Benefit Plan
i) Gratuity: The employeesâ gratuity fund scheme is a defined benefit plan. The Company provides gratuity for employees in India as per the Payment of Gratuity Act, 1972. Employees who are in continous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement/termination is the employeesâ last drawn basic salary per month computed proportionately for 15 days salary multiplied by the number of years of service. The scheme is funded with an insurance company in the form of a qualifying insurance policy through the trustees of the trust. The present value of the obligation is determined on the basis of year end acturial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit seperately to build up the final obligation.
ii) Leave Encashment: Leave Encashment: The company also has a leave encashment scheme with defined benefits for its employees. The company makes provision for such liability in the books of accounts on the basis of year end acturial valuation. No fund has been created for this scheme.
X Risk Exposure
These plans typically expose the Company to actuarial risks such as :-
- Interest Rate Risk : the defined benefit obligation calculated uses a discount rate based on government bonds. If bond yields fall, the defined benefit obligation will tend to increase.
- Salary Inflation risk : higher than expected increases in salary will increase the defined benefit obligation.
- Demographic risks : this is the risk of volatility of results due to unexpected nature of decrements that include mortality attrition, disability and retirement. The effects of these decrement on the DBO depends upon the combination salary increase, discount rate, and vesting criteria and therefore not very straight forward. It is important not to overstate withdrawal rate because the cost of retirement benefit of a short caring employees will be less compared to long service employees.
- Asset Liability Mismatch : This will come into play unless the funds are invested with a term of the assets replicating the term of the liability.
- Investment Risk : For funded plans that rely on insurers for managing the assets, the value of assets certified by the insurer may not be the fair value of instruments backing the liability. In such cases, the present value of the assets is independent of the future discount rate. This can result in wide fluctuations in the net liability or the funded status if there are significant changes in the discount rate during the inter-valuation period.
- Liquidity Risk : Employees with high salaries and long durations or those higher in hierarchy, accumulate significant level of benefits. If some of such employees resign / retire from the company there can be strain on the cash flows.
- Legislative Risk/Regulatory Risk : Legislative risk is the risk of increase in the plan liabilities or reduction in the plan assets due to change in the legislation / regulation. The government may amend the Payment of Gratuity Act thus requiring the companies to pay higher benefits to the employees. This will directly affect the present value of the Defined Benefit Obligation and the same will have to be recognized immediately in the year when any such amendment is effective.
XI Leave Encashment
The leave obligations cover the Companyâs liability for earned leaves. The amount of provision of Rs.12.38 Lakh (as at 31 March 2017: Rs.50.41 Lakh, 1st April 2016: Rs.67.46 Lakh) is presented as current, since the Company does not have an unconditional right to defer settlement for any of these obligations. However, based on past experience, the Company does not expect all employees to take the full amount of accrued leave or require payment within the next 12 months, therefore based on the independent actuarial report, only a certain amount of provision has been presented as current and remaining as non-current. The amount debited/ (recognized) for the year is:
22.1 The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors including supply and demand in employment market.
B. Defined Contribution Plan
The Company makes provident fund contribution to defined contribution retirement benefit plan for its employees. Under the scheme, the company deposits an amount determined as a specified percentage of basic pay with the regional provident fund commissioner. Contribution to defined contribution plan recognized as expense for the year is Rs.106.52 Lakh (as at 31st March, 2017: Rs.143.88 Lakh and as at 1st April, 2016: Rs.184.21 Lakh)
23. Related Party Disclosures
As per Indian Accounting Standard-24, the disclosures of transactions with related parties are given below:
a) List of the related parties where control exist and related parties with whom transaction have taken place and description of their relationship: :
1 Wholly Owned Subsidiaries M/s Geo Connect Ltd.
M/s Housing & Construction Lanka Pvt. Ltd.
M/s Maestro Promoters Pvt. Ltd.
M/s Wrangler Builders Pvt. Ltd.
M/s Anjuman Buildcon Pvt. Ltd.
M/s A R Infrastructure Pvt. Ltd.
M/s A R Paradise Pvt. Ltd.
M/s Fenny Real Estates Pvt. Ltd.
M/s Third Eye Media Pvt Ltd.
M/s Sunrise Facility Management Pvt. Ltd.
M/s Aevee Iron & Steel Works Pvt. Ltd.
M/s Enchant Constructions Pvt. Ltd.
M/s Rishu Builtech Pvt. Ltd.
M/s Sonu Buildwell Pvt. Ltd.
M/s Andri Builders & Developers Pvt. Ltd.
M/s VS Infratown Pvt. Ltd.
M/s Cross Bridge Developers Pvt. Ltd.
M/s Identity Buildtech Pvt. Ltd.
M/s Shamia Automobiles Pvt. Ltd.
M/s Oriane Developers Pvt. Ltd.
2 Key Management Personnel (KMPâs)/ Mr. Deepak Ansal (Chairman & Managing Director)
Non Executive Director Mrs. Divya Ansal (Non Executive Director w.e.f. 14.09.2017)
Mr. Kushagr Ansal (Whole Time Director)
Mrs. Nisha Ahuja (Non Executive Director upto 13.09.2017)
Mr. Ashok Khanna (Non Executive Director)
Mr. Surrinder Lal Kapur (Non Executive Director)
Mr. Maharaj Kishen Trisal (Non Executive Director)
Mr. Karun Ansal (President)
Mr. KK Singhal (Executive Director upto 31.05.2017)
Mr. Sanjay Mehta (Chief Financial Officer)
Mr. SN Grover (Company Secretary)
3 Relatives of Key Management Personnel M/s Deepak Ansal-(H.U.F)- (Karta Mr. Deepak Ansal)
(With whom transaction taken place during the year) Mrs. Divya Ansal (Wife of Mr. Deepak Ansal)
Mrs. Megha Ansal (wife of Mr. Kushagr Ansal)
Mrs. Neha Ansal (wife of Mr. Karun Ansal)
Mr. Aryan Ansal (Son of Mr. Kushagr Ansal)
Ms. Ayesha Ansal (Daughter of Mr. Kushagr Ansal)
Mr. Veer Ansal (Son of Mr. Karun Ansal)
Ms. Geeta Singhal ( Wife of Mr. K K Singhal)
Mrs Jyotika Mehta (Wife of Mr. Sanjay Mehta)
Mrs. Chandani Mehta (Daughter of Mr. Sanjay Mehta)
4 Associates M/s Optus Corona Developers Pvt. Ltd.
5 Enterprise over which KMP and their relatives M/s Infinet India Ltd.
have significant influence (SI) M/s Akash Deep Portfolios Private Ltd.
M/s Suraj Kumari Charitable Trust M/s Ansal Clubs Pvt. Ltd.
M/s Sungrace Security Services Private Ltd.
M/s Snow White Cable Network Private Ltd.
M/s Global Consultant & Designers Private Ltd.
M/s Glorious Properties Private Ltd.
M/s Toptrack Infotech Private Ltd.
M/s Toptrack Real Estate Private Ltd.
M/s Ansal Land & Housing Private Ltd.
M/s Shree Satya Sai Construction and Development Private Ltd. M/S Ansal Rep (Construction) International Pvt. Ltd.
M/S Ansal Development Pvt. Ltd.
M/S Effective Investments Consultants Ltd.
M/S Ansal Theatres & Clubotels Pvt. Ltd.
M/s Ansal Buildwell Ltd.
M/s Khanna Watches Ltd.
6 Trust Employee Benefit Ansal Housing & Construction Ltd. Group Gratuity Trust
*The amount represents monies received against sale of flats for which revenue is recognised on percentage of completion basis on overall progress of the project.
**The amount represents money which is due for payments against cancellation of booked flats/plots for which revenue is derecognised on percentage of completion basis on overall progress of the project.
The Company has disclosed financial instruments such as trade receivables, unbilled revenue, cash and cash equivalents, loans, other financial assets, trade payables and other financial liabilities at carrying value because their carrying amounts represents the best estimate of the fair values.
(ii) Fair value hierarchy
The fair value of financial instruments have been classified into three categories depending on the input used in the valuation technique. The categories used are as follows:
Level 1: Quoted prices for identical instruments in an active market
Level 2: Directly or indirectly observable market input, other than Level 1 inputs
Level 3: Inputs which are not based on observable market date
B Financial Risk Management
The Companyâs business operations are exposed to various financial risks such as liquidity risk, market risks, credit risk, interest rate risk, funding risk etc. The Companyâs financial liabilities mainly includes borrowings taken for the purpose of financing companyâs operations, trade payable and other financial liabilities. Financial assets mainly includes trade receivables, unbilled revenue, investment in subsidiaries/associates, loans, security deposit etc. The company is not exposed to foreign currency risk and the company have not obtained entered in forward contracts and derivative transactions.
The Company has a system based approach to financial risk management. The Company has internally instituted an integrated financial risk management framework comprising identification of financial risks and creation of risk management structure. The financial risks are identified, measured and managed in accordance with the Companyâs policies on risk management. Key financial risks and mitigation plans are reviewed by the board of directors of the Company.
I Liquidity Risk
Liquidity risk is the risk that the Company may face to meet its obligations for financial liabilities. The objective of liquidity risk management is that the Company has sufficient funds to meet its liabilities when due. However, presently the Company is under stressed conditions, which has resulted in delays in meeting its liabilities. The Company, regularly monitors the cash outflow projections and arrange funds to meet its liabilities.
The following table summarises the maturity analysis of the Companyâs financial liabilities based on contractual undiscounted cash outflows:
II Market risk
Market risk is the risk that future cash flows will fluctuate due to changes in market prices i.e. interest rate risk and price risk.
a. Interest rate risk
Interest rate risk is the risk that the future cash flows will fluctuate due to changes in market interest rates. The Company is mainly exposed to the interest rate risk due to its borrowings. The Company manages its interest rate risk by having balanced portfolio of fixed and variable rate borrowings. The Company does not enter into any interest rate swaps.
Interest rate sensitivity analysis
The exposure of the companyâs borrowing to interest rate change at the end of the reporting periods are as follows :
b. Price risk
The Company has very limited exposure to price sensitive securities, hence price risk is not material.
III Credit Risk
Credit risk is the risk that customer or counter-party will not meet its obligation under the contract, leading to financial loss. The Company is exposed to credit risk for receivables from its real estate customers and refundable security deposits.
Customers credit risk is managed, generally by receipt of sale consideration before handing over of possession and/or transfer of legal ownership rights. The Company credit risk with respect to customers is diversified due to large number of real estate projects with different customers spread over different geographies.
Loans to related parties and project deposits
The company has loans to related parties and project deposits. The settlements of such instruments is linked to the completion of the respective underlying projects. Such financial assets are not impaired as on the reporting date.
Cash and Bank Balances
Credit risk from cash and bank balances is managed by the companyâs finance department in accordance with the companyâs policy.
24. Capital Management
For the purpose of capital management, capital includes equity capital, share premium and retained earnings. The Company maintains balance between debt and equity. The Company monitors its capital management by using a debt-equity ratio, which is total debt divided by total capital.
iii The company has recognised deferred tax assets on its unabsorbed depreciation and business losses carried forward. The Company has executed flat/plot sale agreements with the customers against the Company has also received advances, as disclosed in Note 24 of the financial statements. Revenue in respect of such sale agreements will get recognised in future years on percentage completion method. Based on these sale agreements, the company has reasonable certainty as on the date of the balance sheet, that there will be sufficient taxable income available to realize such assets in the near future. Accordingly, the Company has created deferred tax assets on its carried forward unabsorbed depreciation and business losses.
25. Events after the Reporting period
There are no events observed after the reported period which have an impact on the company operations.
26. Approval of the financial statements
The financial statements were approved for issue by Board of Directors on 29 May, 2018
27. Recent Accounting Pronouncement
a. In March 2018, the Ministry of Corporate Affairs notified Ind AS 115, âRevenue from Contracts with Customersâ. It is applicable to the Company from 1 April 2018. Ind AS 115 requires an entity to recognise revenue to depict the transfer of promised goods or services to customers in amount that reflects the consideration in which entity expects to be entitled in exchange for those goods or services. It introduces a single comprehensive model of accounting for revenues arising from goods or services and will supresede the current revenue recoginition guidance and Ind AS 18 & Ind AS 11. It will effect the measurement, recoginition and disclosure of revenue. The Company is evaluating the requirements of the Ind AS 115 and its impact on financial statements.
b. On 28 March, 2018, the Ministry of Corporate Affairs has issued the Companies (Indian Accounting Standards) Amendment Rules, 2018 Containing Appendix B to Ind AS 21, foreign currency transactions and advances considerations which clarifies the date of the transactions for the purpose of determining the exchange rate to use an initial recognition of the related asset, expenses or income,when an entity has received or paid advance consideration in foreign currency. The effect on the financial statements is being evaluated by the company.
28. First time Ind AS adoption reconciliations:
I Disclosures as required by Indian Accounting Standard (Ind-AS) 101 First Time Adoption of Indian Accounting Standard (Ind AS):
These are Companyâs first standalone financial statements prepared in accordance with Ind AS.
The Company has adopted Ind AS with effect from 1st April, 2017 with comparatives being restated. Accordingly, the impact of transition has been provided in the opening retained earnings as at 1 April 2016 and all the periods presented have been restated accordingly.
A. Exemption and Exceptions Availed A.1 Ind AS mandatory exceptions
The following mandatory exceptions have been applied in accordance with Ind AS 101 in preparing the financial statements:
a. Estimates:
An entityâs estimates in accordance with Ind AS at the date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with previous GAAP (after adjustment to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error. Ind AS estimates as at 1st April, 2016 are consistent with the estimates as at the same date made in conformity with previous GAAP. The Company made estimates for following items in accordance with Ind AS at the date of transition as these were not required under previous GAAP.
(i) Investments in equity instruments carried as FVTPL or FVOCI.
(ii) Investments in debt instruments carried as amortised cost.
(iii) Impairment of financial assets based on the expected credit loss model;
(iv) Discounting of advances
The estimates used by the Company to present the amounts in accordance with the Ind AS reflect conditions that existed at the date on transition to Ind AS.
b. Derecognition of financial assets and liabilities:
The Company has elected to apply the derecognition requirements for financial assets and financial liabilities as per Ind AS 109 prospectively for transactions occurring on or after the date of transition to Ind AS.
c. Classification and measurement of financial assets and liabilities:
Ind AS 101 requires an entity to assess classification and measurement of financial assets (investment in debt instrument) on the basis of the facts and circumstances that exist at the date of transition to Ind AS.
A.2 Ind AS optional exemptions
On first time adoption of Ind AS, Ind AS 101 allows certain exemptions from the retrospective application of certain requirements under Ind AS. The Company has availed the following exemptions:
a. Deemed Cost
The Company has opted to continue with the carrying values measured under the previous GAAP and used that carrying value as the deemed cost for property, plant and equipment on the date of transition.
Further, the Company had revalued certain buildings based on approved valuer as at 31st March, 1996 and had a balance of Rs. 606.21 Lakh in revaluation reserve on the date of transition. On transition, such revaluation reserve has been transferred to general reserve.
b. Investment in subsidiaries and associate
Ind AS 101, provides the option to measure investments in subsidiaries and associate at previous GAAP carrying amount as the deemed cost, if the Company in its separate financial statements have elected to account for its investments in subsidiaries and associate at cost. The Company has opted the previous GAAP carrying amount as deemed cost for investments in subsidiaries and associate.
c. Business Combination
Ind AS 101, provides the option to apply Ind AS 103 prospectively from the transition date or from a specific date prior to the transition date. This provides relief from full retrospective application that would require restatement of all business combinations prior to the transition date. The Company has opted to apply Ind AS 103 prospectively from the transition date and therefore, the balances have been restated accordingly on the transition date.
E. Explanation of material adjustments to Statement of Cash Flows for the year ended 31st March, 2017
There were no material differences between the statement of cash flows presented under Ind AS and the previous GAAP except due to various re-classification adjustments recorded under Ind AS and difference in the definition of cash and cash equivalents under these two GAAPs.
Note: As per Para (10) of Ind AS 101 requires an entity to reclassify items that it had recognised in accordance with previous GAAP as one type of asset, liability or component of equity, but are a different type of asset, liability or component of equity in accordance with Ind AS. Accordingly, assets and liabilities which are different types of assets and liabilities in Ind AS were reclassified as at transition date.
II Notes to First Time Adoption of Ind AS a Investment
The company has certain investments in the Equity shares and Mutual Funds of the company. Under previous GAAP, all the short term investments were recorded at lower of cost or fair value. For Long term Investments , it has to be measured at cost except there were permanent decline in the value . Under Ind AS Investments are required to be valued at fair value. The Company has classified these investments as fair value through Profit and Loss. The resultant imapct has been transferred to Profit and Loss/ Retained earnings.
b Trade Receivables/Sales
Under Ind AS, long-term trade receivables have been discounted at present value.
c Fair value of Financial Assets and Financial Liabilities
Under previous GAAP, financial assets and financial liabilities were carried at book value. Under Ind-AS 109, all financial assets and financial liabilities are required to be initially carried at fair value. The fair value changes are taken to the statement of profit and loss in respect of financial assets and financial liabilities carried at amortised cost.
d Borrowings/Trade Receivables/Inventory/Cost of Constructions/Revenue
Ind AS 109 requires transaction costs/prepaid interest incurred towards origination of borrowings to be deducted from the carrying amount of borrowings on initial recognition. These costs are recognised in the standalone Statement of Profit and Loss over the tenure of the borrowing as part of the interest expenses by applying the effective interest rate method. Under previous GAAP, these transaction costs were capitalised to the respective projects/charged to profit and loss . Accordingly, these transaction costs capitalised/charged off under previous GAAP have been adjusted to borrowings as at each Balance Sheet date. Accordingly, due to application of percentage completion method on these projects, trade receivables, inventory and revenue has been reduced.
e Deferred Tax
Indian GAAP requires deferred tax accounting using the income statement approach, which focuses on differences between taxable profits and accounting profits for the period. Ind AS 12, âIncome taxesâ, requires entities to account for deferred taxes using the balance sheet approach, which focuses on temporary differences between the carrying amount of an asset or liability in the Balance Sheet and its tax base. The application of Ind AS 12 has resulted in recognition of deferred tax on new temporary differences, which was not required under Indian GAAP. Deferred tax impact on above stated adjustments & exemptions opted by the Company have been recognised. f Retained Earnings Retained Earnings as at 1 April, 2016 has been adjusted consequent to Ind AS transition adjustments.
g Proposed Dividend
Under the previous Indian GAAP, proposed dividend including dividend distribution tax (DDT), were recognised as liability in the period to which they relate, irrespective of when they were declared. Under Ind AS, proposed dividend is recognised as a liability in the period in which it is declared by the Company, usually when approved by shareholders in a general meeting or paid.
h Defined benefit liabilities
Both under previous Indian GAAP and Ind AS, the Group recognised costs related to its post-employment defined benefit plan on an actuarial basis. Under previous Indian GAAP, the entire cost, including remeasurements, are charged to profit or loss. Under Ind AS, remeasurements [comprising of actuarial gains and losses, the effect of the asset ceiling, excluding amounts included in net interest on the net defined benefit liability and the return on plan assets excluding amounts included in net interest on the net defined benefit liability] are recognised immediately in the balance sheet with a corresponding debit or credit to retained earnings through OCI.
Mar 31, 2016
NOTES:
1 Terms/ Rights attached to equity shares
The Company has only one class of equity shares having a par value of Rs.10/- per share. Each holder of equity shares is entitled to one vote per share. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation of the Company, the holders of equity shares would be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of the equity shares held by the shareholders.
2 Term Loan from Bank referred above to the extent of:
- Rs. 34,00,00,000/- (Previous year: Rs. 15,00,00,000/-) are secured by way of mortgage of project land owned by the Company and its subsidiaries situated at Gurgaon and hypothecation of finished goods and receivables of Gurgaon Project, assignment of receivables of Alwar project, pledge of term deposit, pledge of shares of a subsidiary company and pledge of part of promoters shareholding in the Company.
3 Bank Overdraft referred above to the extent of:
- Rs. 4,90,32,808/- (Previous year: Nil) is secured by way of mortgage of unsold units owned by the Company in one of its project at Ghaziabad.
4. Term Loan from Corporate Bodies referred above to the extent of
- Rs. 1,90,55,81,078/- (Previous year: Rs. 2,12,03,06,038/-) are secured by way of mortgage of project land owned by the Company and its subsidiaries situated at Agra, Indore, Karnal, Meerut and Gurgaon, mortgage of building situated at Noida, mortgage of premises situated at Delhi owned by promoter directors and their families, assignment of receivables of Agra, Indore, Karnal, Meerut and certain Gurgaon projects and pledge of part of promoters shareholding in the Company.
- Rs. 7,87,77,478/- (Previous year: Nil) are secured by way of mortgage of Plot and Shops owned by the Promoters and the Company situated at Palam Vihar and Noida respectively.
- Rs. 93,75,00,000/- (Previous year: Rs. 80,00,00,000/-) are secured by way of mortgage of land owned by the Company and its subsidiaries situated at Yamunanagar and Amritsar and assignment of receivables of Yamunanagar Project.
- Rs. 8,18,00,000/- (Previous year: Rs. 2,98,00,000/-) are secured by way of mortgage of land owned by the Company and its subsidiaries situated at Jhansi and Ghaziabad and assignment of receivables of Jhansi and Ghaziabad Projects.
- Rs. 37,38,86,512/- (Previous year: Rs. 95,58,96,413/-) are secured by way of mortgage of land owned by the Company and its subsidiaries situated at Gurgaon, assignment of receivables of Gurgaon Projects, pledge of term deposit and pledge of shares of a subsidiary company and associate company.
a) In respect of certain assessment years upto 2003-04, the Delhi High Court has allowed the appeal of the Income Tax Department filed against the order of the Income Tax Appellate Tribunal, New Delhi, holding that the Notional Annual Letting Value of Flats/Commercial spaces etc. lying unsold in the closing stock is liable to tax under the head ''Income from House Property''. Based on the High Court Order, the tax department has created a demand of Rs.11,12,66,350/- (Previous year Rs.9,98,56,820/-) against the Company and a further liability of Rs.4,42,62,073/- (Previous year Rs.4,42,62,073/-) is estimated in respect of cases which are pending before the ITAT/High Court. The Company has filed special leave petition before the Supreme Court against the order of the Delhi High Court which has been admitted by the Supreme Court.
b) In respect of certain assessment years, Sales tax authorities have held that construction of properties by developer/ builder is liable to sales tax / VAT and have raised a demand of Rs.8,25,21,099/- (Previous year Rs.6,14,14,690/-) against the Company which are being disputed by the Company before the appellate authorities. Against these demands, the Company has paid Rs.4,82,57,190/- (Previous year Rs.3,39,04,340/-) under protest and the balance demand has been stayed by the authorities. The management is of the view that in case the Company becomes liable to pay sales tax /VAT, the same will be recovered from the customers to whom these properties have been sold and there is no contingent liability in this respect. The Company has started collecting VAT from Customers on provisional basis.
c) Uttar Pradesh Revenue Authorities have raised demands of Rs.6,91,70,308/- (Previous year Rs.4,93,20,128/-) towards deficiency in Stamp Duty on purchase of land/ registration of agreements. Against these demands, the Company has paid Rs.2,14,59,250/-(Previous year Rs.1,53,49,516/-) under protest and the balance demand has been stayed by the appellate authorities. Pending final decision in the matter, no provision has been considered necessary.
d) The Company has received a demand from the service tax department levying service tax of Rs.2,71,30,632/- (Previous year Rs.2,71,30,632/-) on transfer charges / administrative charges / processing charges recovered from the customers. The Company has filed an appeal with Custom, Excise and Service Tax Appellate Tribunal New Delhi which is pending. The demand has been stayed by the tribunal.
In respect of various claims against the Company disclosed above, it has been advised that it has a reasonably good case to succeed at various appellate authorities and hence does not expect any material liability when the cases are finally decided.
iii) In respect of block assessment for the period 1st April, 1989 to 10th February, 2000, Income Tax Appellate Tribunal (ITAT) has given full relief to the Company and rejected department''s ground of appeal, for tax claim of Rs.1,27,06,760/- (Previous year Rs.1,27,06,760/-). Further, in respect of assessment of certain years, demands had been raised by the Income Tax Department against the Company amounting to Rs.7,86,82,147/- (Previous year Rs.7,54,87,129/-) approx. by disallowing deduction under sections 80(IB) of the Income Tax Act, 1961 and other matters. The appeals filed by the Company have been decided in its favour by CIT(Appeals)/ ITAT/ High Court. The tax department has gone for further reference in the above matters to ITAT / High Court/ Supreme Court. The Management has been advised that it has a good case to succeed and no tax liability is likely to arise in these cases.
iv) In some of the cases, consideration received on sale of Plots/ Flats/ Apartments is less than the value adopted by the regulatory authorities for payment of stamp duty and would attract the provisions of Section 43CA of the Income Tax Act, 1961. The additional tax liability which may arise cannot be ascertained at this stage as tax assessments for the relevant years are in progress or the tax returns are not due for filing.
5 Capital and Other Commitments
i) Estimated amount of contracts remaining to be executed on capital account (net of advances) and not provided for Rs. Nil (Previous year Rs. Nil).
ii) The Company has entered into joint development agreements with owners of land for its construction and development. As stipulated under the agreements, the Company is required to share in area/ revenue from such development in exchange of undivided share in land as stipulated under the agreements. As on March 31, 2016 the Company has paid Rs.83,19,34,181/-(Previous year Rs.91,46,28,099/-) as deposits/ advances against the joint development agreements. Further, the Company has given advances for purchase of land. Under the agreements executed with the land owners, the Company is required to make further payments based on terms/ milestones stipulated in the agreement. The future committment in respect of purchase of land, to the extent quantifiable, amounts to Rs. 2,25,00,000/- (Previous year Rs. 7,00,00,000/-).
6 Inventory of Land includes Rs.12,67,38,752/- (Previous year Rs.13,48,23,786/-) acquired by subsidiary companies/ others. The land is registered in the name of the subsidiary companies/ others but is under the possession and control of the Company for development and sale of Real Estate Projects in terms of collaboration agreement with these companies.
7 The Company is engaged primarily in the business of Real Estate development and also running Hospitality Business. However, there are no separate reportable segments as per criterion set out under Accounting Standard 17 on Segment Reporting in the Company. The Company is operating in India, hence there is no reportable geographical segment.
8 The Company has not received intimation from suppliers regarding the status under Micro, Small & Medium Enterprises Development Act, 2006 and hence disclosure, if any, relating to the amounts unpaid at the yearend together with interest payable as required under the said Act has not been given.
33 The managerial remuneration paid to the Chairman and Managing Director (CMD) of the Company during the year is in excess of the limit provided in Section 197 read with Schedule-V of the Companies Act, 2013 by Rs.1,11,79,001/- due to the inadequacy of the profit for the year computed in the manner referred to in Section 198 of the Companies Act, 2013. The Company has applied to the Central Government under Section 197(3) of the Companies Act, 2013 for approval of excess remuneration paid to the CMD. The approval of Central Government is awaited.
9 Operating Lease
The Company has taken various residential / commercial premises under cancelable operating leases. These leases are normally renewable on expiry. The rental expenses in respect of operating leases amounting to Rs. 5,90,49,443/- (previous year Rs.5,85,53,873/-) has been charged to the statement of profit and loss/ project in progress.
10 The disclosures of Employee Benefits as defined in Accounting Standard 15 are given below:
A. Defined Benefit Plan
i) Gratuity: The employees'' gratuity fund scheme is a defined benefit plan. The scheme is funded with an insurance company in the form of a qualifying insurance policy. The present value of the obligation is determined on the basis of year end actuarial valuation using the Projected Unit Credit Method, which recognizes 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.
ii) Leave Encashment: The company also has a leave encashment scheme with defined benefits for its employees. The company makes provision for such liability in the books of accounts on the basis of year end actuarial valuation. No fund has been created for this scheme.
NOTES:
11 The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors including supply and demand in employment market.
B. Defined Contribution Plan
The Company makes provident fund contribution to defined contribution retirement benefit plan for its employees. Under the scheme, the company deposits an amount determined as a specified percentage of basic pay with the regional provident fund commissioner. Contribution to defined contribution plan recognized as expense for the year is Rs.1,84,21,103/- (Previous year Rs.2,17,46,722/-)
Mar 31, 2015
A) In respect of certain assessment years upto 2003-04, the Delhi High
Court has allowed the appeal of the Income Tax Department filed against
the order of the Income Tax Appellate Tribunal, New Delhi, holding that
the Notional Annual Letting Value of Flats/Commercial spaces etc. lying
unsold in the closing stock is liable to tax under the head 'Income
from House Property'. Based on the High Court Order, the tax department
has created a demand of Rs, 9,98,56,820/- against the Company and a
further liability of Rs, 4,42,62,073/- is estimated in respect of cases
which are pending before the ITAT/High Court. The Company has fled
special leave petition before the Supreme Court against the order of
the Delhi High Court which has been admitted by the Supreme Court.
b) In respect of certain assessment years, Sales tax authorities have
held that construction of properties by developer/ builder is liable to
sales tax / VAT and have raised a demand of Rs, 10,25,86,168/- against
the Company which are being disputed by the Company before the
appellate authorities. Against these demands, the Company has paid Rs,
4,19,04,340/- under protest and the balance demand has been stayed by
the authorities. The management is of the view that in case the Company
becomes liable to pay sales tax /VAT, the same will be recovered from
the customers to whom these properties have been sold.
c) Uttar Pradesh Revenue Authorities have raised demands of Rs,
4,93,20,128/- towards deficiency in Stamp Duty on purchase of land /
registration of agreements. Against these demands, the Company has paid
Rs, 1,53,49,516/- under protest and the balance demand has been stayed
by the appellate authorities. Pending final decision in the matter, no
provision has been considered necessary.
d) The Company has received a demand from the service tax department
levying service tax of Rs, 2,71,30,632/- lacs on transfer charges /
administrative charges / processing charges recovered from the
customers. The Company has fled an appeal with Custom, Excise and
Service Tax Appellate Tribunal New Delhi which is pending. The demand
has been stayed by the tribunal.
In respect of various claims against the Company disclosed above, it
has been advised that it has a reasonably good case to succeed at
various appellate authorities and hence does not expect any material
liability when the cases are finally decided.
i) In respect of block assessment for the period 1st April, 1989 to
10th February, 2000, Income Tax Appellate Tribunal (ITAT) has given
full relief to the Company and rejected department's ground of appeal,
for tax claim of Rs,1,27,06,760/- (Previous year Rs,1,27,06,760/-).
Further, in respect of assessment of certain years, demands had been
raised by the Income Tax Department against the Company amounting to
Rs, 7,54,87,129/- (Previous year Rs,11,97,49,202/-) approx by
disallowing deduction under sections 80(IB) of the Income Tax Act, 1961
and other matters. The appeals filed by the Company have been decided
in its favor by CIT(Appeals)/ ITAT/ High Court. The tax department has
gone for further reference in the above matters to ITAT / High Court/
Supreme Court. The Management has been advised that it has a good case
to succeed and no tax liability is likely to be arise in these cases.
1. Capital and Other Commitments
i) Estimated amount of contracts remaining to be executed on capital
account (net of advances) and not provided for Rs, Nil (Previous year
Rs, 33,54,981/-).
ii) The Company has entered into joint development agreements with
owners of land for its construction and development. As stipulated
under the agreements, the Company is required to share in area/ revenue
from such development in exchange of undivided share in land as
stipulated under the agreements. As on March 31, 2015 the Company has
paid Rs, 91,46,28,099/- (Previous year Rs, 2,08,78,59,709/-) as
refundable deposits against the joint development agreements. Further,
the Company has given advances for purchase of land. Under the
agreements executed with the land owners, the Company is required to
make further payments based on terms/ milestones stipulated in the
agreement. The future commitment in respect of purchase of land, to the
extent quantifiable, amounts to Rs, 7,00,00,000/-.
2. Inventory of Land includes Rs, 13,48,23,786/- (Previous year Rs,
11,85,57,755/-) acquired by subsidiary companies. The land is
registered in the name of the subsidiary companies/ others but is under
the possession and control of the Company for development and sale of
Real Estate Projects in terms of collaboration agreement with these
companies.
3. The Company is engaged primarily in the business of Real Estate
development and also running Hospitality Business. However, there are
no separate reportable segments as per criterion set out under
Accounting Standard 17 on Segment Reporting in the Company. The Company
is operating in India, hence there is no reportable geographical
segment.
4. The Company has not received intimation from suppliers regarding the
status under Micro Small Medium Enterprises Development Act, 2006 and
hence disclosure, if any, relating to the amounts unpaid at the yearend
together with interest payable as required under the said Act has not
been given.
5. Expenditure related to Corporate Social Responsibility as per
section 135 of Companies Act, 2013 read with Schedule VII amounts to
Rs,1,10,25,000/- 33 The managerial remuneration paid to the Managing
Director of the Company during the year is in excess of the limit
provided in Section 197 read with Schedule-V of the Companies Act, 2013
by Rs, 84,57,019/- due to the inadequacy of the profit for the year
computed in the manner referred to in Section 198 of the Companies Act,
2013. The Company has decided to apply to the Central Government under
Section 197(10) of the Companies Act, 2013. 34 In respect of the
restaurant division, the Company has closed down three restaurants and
is currently operating two restaurants out of which one restaurant is
also intended to be closed in the near future. The restaurants which
have been closed down are proposed to be leased out along with all the
fixed assets and negotiations with the parties are in final stages. The
carrying amount of fixed assets (including premises) of the restaurants
which have been closed down amounts to Rs, 3,37,98,132/- . In the
opinion of the management, there is no impairment in the value of fixed
assets of restaurants as the same are proposed to be leased out.
6. Operating Lease
The Company has taken various residential / commercial premises under
cancelable operating leases. These leases are normally renewable on
expiry. The rental expenses in respect of operating leases amounting to
Rs, 5,85,53,873/- (previous year Rs, 4,76,85,710/-) has been charged to
the statement of profit and loss/ project in progress.
7. The disclosures of Employee Benefits as defend in Accounting
Standard 15 are given below:
A. Defend Benefit Plan
i) Gratuity: The employees' gratuity fund scheme is a defend benefit
plan and is managed by LIC. The present value of the obligation is
determined on the basis of year end actuarial valuation using the
Projected Unit Credit Method, which recognizes 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. ii)
Leave Encashment: The Company also has a Leave Encashment Scheme with
defend benefits for its employees. The Company makes provision for such
liability in the books of accounts on the basis of year end actuarial
valuation. No fund has been created for this scheme.
NOTES:
8. The estimates of rate of escalation in salary considered in
actuarial valuation, take into account inflation, seniority, promotion
and other relevant factors including supply and demand in employment
market.
B. Defend Contribution Plan
The Company makes provident fund contribution to defend contribution
retirement benefit plan for its employees. Under the scheme, the
Company deposits an amount determined as a specified percentage of
basic pay with the regional Provident Fund Commissioner. Contribution
to defend contribution plan recognized as expense for the year is Rs,
2,17,46,722/- (Previous year Rs, 1,93,43,389/-).
9. The brief particulars other than quantitative details relating to
Hospitality Division are given below:
(a) Income from Food and Beverage and Other Services for the year
include income from Wine and Liquor Rs,1,29,57,622/- (Previous Year
Rs,1,95,50,191/-).
10. Previous year figures:
Previous Year figures have been regrouped/rearranged wherever
considered necessary, to make them comparable with Current Year's
figures.
Mar 31, 2014
1. Terms/ Rights attached to equity shares
The Company has only one class of equity shares having a par value of
Rs. 10/- per share. Each holder of equity shares is entitled to one
vote per share. The dividend proposed by the Board of Directors is
subject to the approval of the shareholders in the ensuing Annual
General Meeting. In the event of liquidation of the Company, the
holders of equity shares would be entitled to receive remaining assets
of the Company, after distribution of all preferential amounts. The
distribution will be in proportion to the number of the equity shares
held by the shareholders.
2. The Company has increased its Authorized Share Capital from Rs. 50
crores to Rs. 100 crores by amending the Capital Clause of the
Memorandum of Association of the Company with the consent of the
shareholders by means of Postal Ballot on 2nd April, 2013.
3. During the year, pursuant to approval accorded by the Shareholders
of the Company vide resolution dated 2nd April, 2013 through Postal
Ballot, the Company has made the allotment of 3,95,90,552 bonus equity
shares on 12th April, 2013 in the ratio of 2:1 (two new bonus equity
shares of Rs. 10/- each for every one existing equity share of Rs. 10/-
each held in the Company) to the eligible shareholders of the Company
whose names appeared in the Register of Members / Beneficial Owners of
the Company as on record date i.e. 12th April, 2013.
4. Equity Shares bought back as per section 77A of Companies Act, 1956
during five years preceding 31st March, 2014
* 1,78,272 Equity Shares bought back during the financial year 2011-12
* 3,97,296 Equity Shares bought back during the financial year 2012-13
5 NOTES:
Term Loan from Bank referred above to the extent of:
* Rs. Nil/- (Previous year: Rs. 3,29,99,998/-) are secured by way of
mortgage of project land owned by the Company and its subsidiaries
situated at Zirakpur and Meerut and hypothecation of finished goods and
receivables of Zirakpur, Meerut and Agra projects.
6. Term Loan from Corporate Bodies referred above to the extent of:
* Rs. 60,00,00,000/- (Previous year: Rs. 85,00,00,000/-) are secured by
way of mortgage of land/ building owned by the Company and its
subsidiaries situated at Ghaziabad, Mumbai and Agra, mortgage of land/
premises owned by promoter directors and their families situated at
Gurgaon and Mumbai, pledge of part of promoters shareholding in the
Company and pledge of shares of subsidiary Companies.
* Rs. 1,91,22,13,285/- (Previous year: Rs. 96,48,86,085/-) are secured
by way of mortgage of project land owned by the Company and its
subsidiaries situated at Agra, Indore, Karnal, Meerut and Gurgaon,
mortgage of building situated at Noida, mortgage of premises situated
at Delhi owned by promoter directors and their families, assignment of
receivables of Agra, Indore, Rewari, Karnal, Meerut and certain Gurgaon
projects and pledge of part of promoters shareholding in the Company.
* Rs. Nil (Previous year: Rs. 5,62,49,998/-) are secured by way of
mortgage of land owned by the Company and its subsidiaries situated at
Yamunanagar location and assignment of receivables of Yamunanagar
Project.
* Rs. 10,98,00,000/- (Previous year: Rs. 12,98,00,000/-) are secured by
way of mortgage of land owned by the Company and its subsidiaries
situated at Jhansi and assignment of receivables of Jhansi Project.
* Rs. 1,15,00,00,000/- (Previous year: Rs. 40,00,00,000/-) are secured
by way of mortgage of land owned by the Company and its subsidiaries
situated at Gurgaon, assignment of receivables of Gurgaon Projects and
pledge of shares of a subsidiary company and associate company.
7 Vehicle/ Equipment Loan from Bank/ Corporate Bodies referred above
are secured by way of hypothecation of respective vehicle/ construction
equipment.
8. NOTES:
8 Working Capital Loans of Rs. 61,27,08,061/- (Previous year: Rs.
75,64,35,617/-) from Scheduled Banks are secured by charge over stocks
of materials, unsold finished stock, construction work-in-progress,
book-debts of the Company and have been guaranteed by promoter
directors.
9. NOTES:
9.1 The Advances from Customers referred above includes Rs.
12,08,71,393/- (Previous year: Rs. 21,76,44,087/-) received from
subsidiary Companies and Rs. 60,00,000/- (Previous year: Rs.
60,00,000/-) from other related parties.
9.2 The Other payables referred above includes statutory dues, book
overdraft, commission payable to directors.
9.3 Other payables also includes Rs. 12,11,52,223/- (Previous year:
Rs. 14,08,64,028/-) payable to a subsidiary Companies.
10. During the Financial Year 2013-2014, the Company had acquired
equity shares of two new companies i.e. Shamia Automo- biles Pvt. Ltd.
on 28.09.2013 and Oriane Developers Pvt. Ltd. on 02.01.2014 and
consequently these companies have become Wholly Owned Subsidiaries of
the Company.
11 During the Year, the Company has acquired 49% equity shares of M/s
Optus Corona Developers Pvt. Ltd. and consequently it has become
Associate of the Company.
* Fixed Deposits with Banks includes deposits of Rs. 32,36,221/-
(Previous year Rs. 2,34,090/-) with maturity of more than 12 months.
NOTE:
12. Prior Period Adjustment includes remuneration pertaining to
earlier years of President (Projects) of the Company amounting to Rs.
1,39,92,448/- which has been readjusted as per the Central Government
approval under section 314(1B) of Companies Act, 1956.
CONTINGENT LIABILITIES AND COMMITMENTS
(TO THE EXTENT NOT PROVIDED FOR)
As at 31st As at 31st
March, 2014 March, 2013
13. Contingent Liabilities
i) Guarantees
* Guarantees given by the Company to
Banks/Financial Institutions against
credit facilities extended to third
parties. (to the extent of outstanding
Loan amount) 19,36,88,136 38,23,95,136
ii) Claims against the Company not
acknowledged as Debts
* Income Tax/ Wealth Tax demand being
disputed by the Company 13,37,79,171 3,09,66,048
* Sales Tax demand being disputed
by the Company 7,11,44,240 3,89,08,619
* Stamp Duty demand being disputed
by the Company 10,49,21,503 9,01,46,746
* Service Tax demand being disputed
by the Company 2,71,30,632 2,71,30,632
* Claims by customers for refund of
amount deposited/ Compensation/Interest
(to the extent quantifiable) 9,30,59,797 6,84,62,283
* Other Claims against the Company not
acknowledged as debts 66,78,040 66,78,040
63,04,01,518 64,46,87,504
iii) In respect of block assessment for the period 1st April, 1989 to
10th February, 2000, Income Tax Appellate Tribunal (ITAT) has given
full relief to the Company and rejected department''s ground of appeal,
for tax claim of Rs. 1,27,06,760/- (Previous year Rs. 1,27,06,760/-).
Further, in respect of assessment of certain years, demands had been
raised by the Income Tax Department against the Company amounting to
Rs. 11,97,49,202/- (Previous year Rs. 5,97,39,075/-) approx by
disallowing deduction under sections 80(IB) of the Income Tax Act, 1961
and other matters. The appeals filed by the Company have been decided
in its favour by CIT(Appeals)/ ITAT/ High Court. The tax department has
gone for further reference in the above matters to ITAT / High Court/
Supreme Court. The Management has been advised by the legal counsel
that it has a good case to succeed and no tax liability is likely to
arise in these cases.
14. Capital and Other Commitments
i) Estimated amount of contracts remaining to be executed on capital
account (net of advances) and not provided for Rs. 33,54,981/-
(Previous year Rs. 46,96,654/-)
ii) The Company has entered into joint development agreements with
owners of land for its construction and development. As stipulated
under the agreements, the Company is required to share in area/ revenue
from such development in exchange of undivided share in land as
stipulated under the agreements. As on March 31,2014 the Company has
paid Rs. 2,08,78,59,709/- (Previous year Rs. 40,31,67,714/-) as
refundable deposits against the joint development agreements. Further,
the Company has given advances for purchase of land. Under the
agreements executed with the land owners, the Company is required to
make further payments based on terms/ milestones stipulated in the
agreement.
15. Inventory of Land includes Rs. 11,85,57,755/- (Previous year Rs.
14,61,80,262/-) acquired by subsidiary companies. The land is
registered in the name of the subsidiary companies but is under the
possession and control of the Company for development and sale of Real
Estate Projects in terms of collaboration agreement with these
companies.
16. The Company is engaged primarily in the business of Real Estate
development and also running Hospitality Business. However, there are
no separate reportable segments as per criterion set out under
Accounting Standard 17 on Segment Reporting in the Company. The Company
is operating in India, hence there is no reportable geographical
segment.
17. The Company has not received intimation from suppliers regarding the
status under Micro Small Medium Enterprises Development Act, 2006 and
hence disclosure, if any, relating to the amounts unpaid at the year
end together with interest payable as required under the said Act has
not been given.
18. Operating Lease
The Company has taken various residential / commercial premises under
cancelable operating leases. These leases are normally renewable on
expiry. The rental expenses in respect of operating leases amounting to
Rs. 4,76,85,710/- (previous year Rs. 4,71,26,505/-) has been charged to
the statement of profit and loss/ project in progress.
19. The disclosures of Employee Benefits as defined in Accounting
Standard 15 are given below:
A. Defined Benefit Plan
i) Gratuity: The employees'' gratuity fund scheme is a defined benefit
plan and is managed by LIC. The present value of the obligation is
determined based on details received from LIC using the Projected Unit
Credit Method, which recognizes each period of service as giving rise
to additional unit of employee benefit entitlement and measures each
unit seperately to build up the final obligation.
ii) Leave Encashment: The company also has a leave encashment scheme
with defined benefits for its employees. The company makes provision
for such liability in the books of accounts on the basis ofyear end
acturial valuation. No fund has been created for this scheme.
NOTES:
20. The estimates of rate of esclation in salary considered in
acturial valuation, take into account inflation, seniority, promotion
and other relevant factors including supply and demand in employment
market.
A. Defined Contribution Plan
The Company makes provident fund contribution to defined contribution
retirement benefit plan for its employees. Under the scheme, the
company deposits an amount determined as a specified percentage of
basic pay with the regional provident fund commissioner. Contribution
to defined contribution plan recognized as expense for the year is Rs.
1,93,43,389/- (Previous year Rs. 1,23,94,752/-)
21. The brief particulars other than quantitative details relating to
Hospitality Division are given below:
(a) Income from Food and Beverage and Other Services for the year
include income from Wine and Liquor Rs. 1,95,50,191/- (Previous Year
Rs. 2,06,58,243/-).
22. Previous year figures:
Previous Year figures have been regrouped/rearranged wherever
considered necessary, to make them comparable with Current Year''s
figures.
Mar 31, 2013
NOTE 1 : CONTINGENT LIABILITIES AND COMMITMENTS (TO THE EXTENT NOT
PROVIDED FOR)
1.1 Contingent Liabilities
i) Guarantees
- Guarantees given by the Company to Banks/
Financial Institutions against credit
facilities extended to third parties.
(to the extent of outstanding Loan
amount) 38,23,95,136 49,23,95,136
ii) Claims against the Company not
acknowledged as Debts
- Income Tax/ Wealth Tax demand
being disputed by the Company 3,09,66,048 4,65,09,090
- Sales Tax demand being disputed
by the Company 3,89,08,619 2,46,85,005
- Stamp Duty demand being
disputed by the Company 9,01,46,746 9,61,46,726
- Service Tax demand being disputed
by the Company 2,71,30,632 2,71,30,632
- Claims by customers for refund of
amount deposited/
Compensation/ Interest (to the
extent quantifable) 6,84,62,283 5,51,86,256
- Other Claims against the
Company not acknowledged as debts 66,78,040 68,93,124
64,46,87,504 74,89,45,969
iii) In respect of block assessment for the period 1st April, 1989 to
10th February, 2000, Income Tax Appellate Tribunal (ITAT ) has given
full relief to the Company and rejected department''s ground of appeal,
for tax claim of Rs.1,27,06,760/- (Previous year Rs.1,27,06,760/-).
Further, in respect of assessment of certain years, demands had been
raised by the Income Tax Department against the Company amounting to Rs.
5,97,39,075/- (previous year Rs. 7,25,24,050/-) approx by disallowing
deduction under sections 80(IB) of the Income Tax Act, 1961. The
appeals fled by the Company have been decided in its favour by
CIT(Appeals)/ ITAT. The tax department has gone for further reference
in the above matters to ITAT / High Court. The Management has been
advised by the legal counsel that it has a good case to succeed and no
tax liability is likely to be arise in these cases.
iv) In respect of some earlier years the Delhi High Court has allowed
the appeal of the Income Tax Department, fled against the order of
Income Tax Appellate Tribunal, New Delhi, holding that the Notional
Annual Letting Value of Flats/Commercial spaces etc lying unsold in the
stock in trade of the company is taxable under the head Income from
House Property. The estimated income tax liability in respect of such
cases pending at various forums is Rs. 7,61,50,665/- (excluding interest,
penalty etc). The company has fled special leave petition before
Supreme Court against the order of Delhi High Court. The Supreme Court
has accepted the Special Leave Petition of the Company. The Management
has been advised by the legal counsel that it has a good case to
succeed and no tax liability is likely to be arise in these cases.
1.2 Capital and Other Commitments
i) Estimated amount of contracts remaining to be executed on capital
account (net of advances) and not provided for Rs. 46,96,654/- (Previous
year Rs. 26,21,205/-)
ii) The Company has entered into joint development agreements with
owners of land for its construction and development. Under the
agreements, the Company is required to share in area/ revenue from such
development in exchange of undivided share in land as stipulated under
the agreements. As on March 31,2013 the Company has paid Rs.
40,31,67,714/- (Previous year Rs. 32,19,43,125/-) as refundable deposits
against the joint development agreements. Further, the Company has
given advances for purchase of land. Under the agreements executed with
the land owners, the Company is required to make further payments based
on terms/ milestones stipulated in the agreement.
2 In respect of projects commenced on or after 1st April, 2012 and the
projects commenced before that date but where revenue was not
recognised in earlier years, the Company has followed revenue
recognition policy in accordance with the Guidance Note on Accounting
for Real Estate transactions (Revised 2012) issued by the Institute of
Chartered Accountants of India. However, none of the projects to which
Guidance Note applies has reached revenue recognition stage during the
year. The impact on the current year revenues and profts, had the
Company followed its earlier revenue recognition policy in respect of
such projects, has not been quantifed.
3 Inventory of Land includes Rs.14,61,80,262/- (Previous year
Rs.15,03,32,469/-) acquired by subsidiary companies. The land is
registered in the name of the subsidiary companies but is under the
possession and control of the Company for development and sale of Real
Estate Projects in terms of collaboration agreement with these
companies.
4 The Company is engaged primarily in the business of Real Estate
development and also running Hospitality Business. However, there are
no separate reportable segments as per criterion set out under
Accounting Standard 17 on Segment Reporting in the Company. The Company
is operating in India, hence there is no reportable geographical
segment.
5 The Company has not received intimation from suppliers regarding the
status under Micro Small Medium Enterprises Development Act, 2006 and
hence disclosure, if any, relating to the amounts unpaid at the year
end together with interest payable as required under the said Act has
not been given.
6 Operating Lease
The Company has taken various residential / commercial premises under
cancelable operating leases. These leases are normally renewable on
expiry. The rental expenses in respect of operating leases amounting to
Rs. 4,71,26,505/- (previous year Rs. 5,53,13,402/-) has been charged to the
statement of proft and loss.
7 The disclosures of Employee Benefts as defned in Accounting Standard
15 are given below: A. Defned Beneft Plan
i) Gratuity: The employees'' gratuity fund scheme is a defned beneft
plan and is managed by LIC. The present value of the obligation is
determined based on details received from LIC using the Projected Unit
Credit Method, which recognizes each period of service as giving rise
to additional unit of employee beneft entitlement and measures each
unit seperately to build up the fnal obligation.
ii) Leave Encashment: The company also has a leave encashment scheme
with defned benefts for its employees. The company makes provision for
such liability in the books of accounts on the basis of year end
acturial valuation. No fund has been created for this scheme.
NOTES:
8.1 The estimates of rate of esclation in salary considered in
acturial valuation, take into account infation, seniority, promotion
and other relevant factors including supply and demand in employment
market.
B. Defned Contribution Plan
The Company makes provident fund contribution to defned contribution
retirement beneft plan for its employees. Under the scheme, the company
deposits an amount determined as a specifed percentage of basic pay
with the regional provident fund commissioner. Contribution to defned
contribution plan reconized as expense for the year is Rs.1,23,94,752/-
(Previous year Rs.1,11,57,053/-)
9 Related Party Disclosures
As per Accounting Standard- 18, the disclosures of transactions with
related parties are given below:
a) Names of the related parties where control exists and related
parties with whom transactions have taken place and relationships:
1. Wholly Owned Subsidiaries M/s Geo Connect Ltd.
M/s Housing & Construction Lanka Pvt. Ltd.
M/s Maestro Promoters Pvt. Ltd.
M/s Wrangler Builders Pvt. Ltd.
M/s Anjuman Buildcon Pvt. Ltd.
M/s A R Infrastructure Pvt. Ltd.
M/s A R Paradise Pvt. Ltd.
M/s Fenny Real Estates Pvt. Ltd.
M/s Third Eye Media Pvt Ltd.
M/s Sunrise Facility Management Pvt. Ltd.
M/s Aevee Iron & Steel Works Pvt. Ltd.
M/s Enchant Constructions Pvt. Ltd.
M/s Rishu Builtech Pvt. Ltd.
M/s Sonu Buildwell Pvt. Ltd.
M/s Andri Builders & Developers Pvt. Ltd. (w.e.f. 31.08.2012)
M/s VS Infratown Pvt. Ltd. (w.e.f. 04.10.2012)
M/s Cross Bridge Developers Pvt. Ltd. (w.e.f. 01.12.2012)
M/s Identity Buildtech Pvt. Ltd. (w.e.f. 18.12.2012)
2. Key Management Personnel Mr. Deepak Ansal (Chairman & Managing
Director)
Mr. Kushagr Ansal (Whole Time Director) Mr. Karun Ansal (President)
3. Relatives of Key Management Personnel Ms. Divya Ansal (wife of Mr.
Deepak Ansal)
M/s Deepak Ansal-(H.U.F)- (Karta Mr. Deepak Ansal) Ms. Megha Ansal
(wife of Mr. Kushagr Ansal) Ms. Neha Ansal (wife of Mr. Karun Ansal)
Mr. Aryan Ansal (Son of Mr. Kushagr Ansal)
4. Associates
4.1 Enterprise in which Key Management personnel having substantial
interest M/s Infnet India Ltd.
M/s Akash Deep Portfolios Private Ltd.
M/s Suraj Kumari Charitable Trust
M/s Ansal Clubs Pvt. Ltd.
M/s Sungrace Security Services Private Ltd.
M/s Snow White Cable Network Private Ltd.
M/s Global Consultant & Designers Private Ltd.
M/s Glorious Properties Private Ltd.
M/s Toptrack Infotech Private Ltd.
M/s Toptrack Real Estate Private Ltd.
M/s Ansal Land & Housing Private Ltd.
M/s Shree Satya Sai Construction and Development Private Ltd.
4.2 Enterprises in which relative of Key Management personnel having
substantial interest M/s Ansal Buildwell Ltd.
10 Previous year fgures:
Previous Year fgures have been regrouped/rearranged wherever considered
necessary, to make them comparable with Current Year''s fgures.
Mar 31, 2012
1.1 Terms/ Rights attached to equity shares
The Company has only one class of equity shares having a par value of
Rs.10/- per share. Each holder of equity shares is entitled to one vote
per share. The dividend proposed by the Board of Directors is subject
to the approval of the shareholders in the ensuing Annual General
Meeting. In the event of liquidation of the Company, the holders of
equity shares would be entitled to receive remaining assets of the
Company, after distribution of all preferential amounts. The
distribution will be in proportion to the number of the equity shares
held by the shareholders.
2.2 On 30.10.2010, the Company issued 12,00,000 warrants of Rs. 70/- each
to the Promoters of the Company. Each warrant was convertible at a
premium of Rs.60/- per share of face value of Rs.10/- each at the option of
the holder within 18 months from date of allotment. Out of the
12,00,000 warrants issued, the company allotted 10,00,000 equity shares
on exercise of part op- tion by conversion of warrants at a premium of
Rs. 60/- per share of face value of Rs.10/- each to the Promoters on
08.08.2011. On 10.01.2012, the Promoters surrendered the balance
2,00,000 warrants which were then cancelled by the Company and Rs.
35,00,000/- received against these warrants was forfeited.
NOTE:
2.1 The Board of Directors of the Company, in the meeting held on
02.12.2011, approved buy back of 25,00,000 equity shares of Rs. 10/- each
at maximum price of Rs. 45/- per share for an amount not exceeding Rs.
11,25,00,000/-.
Persuant to the buy back scheme, the Company during the year ending
31st March, 2012 purchased 1,78,272 equity shares of Rs. 10/- each at a
cost of Rs. 75,80,530/-. Out of this amount Rs. 17,82,720/- has been set
off against issued, subscribed and paid up share capital and the
balance of Rs. 57,97,810/- has been debited to the securities premium
account. The Company has extinguished 1,16,848 equity shares upto March
31,2012 and the remaining 61,424 equity shares have been extinguished
subsequent to the close of the year.
In terms of Section 77AA of the Companies Act, 1956, an amount of Rs.
17,82,720/- has been transferred to Capital Redemption Reserve.
NOTES:
3.1 Term Loan from Bank referred above to the extent of:
- Rs. 9,98,00,000/- are secured by way of mortgage of project land owned
by the Company and its subsidiaries situated at Zirakpur & Meerut and
hypothecation of finished goods & receivables of Zirakpur, Meerut and
Agra projects.
3.2 Term Loan from Corporate Bodies referred above to the extent of:
- Rs. 65,00,00,000/- are secured by way of mortgage of land/ building
owned by the Company and its subsidiaries situated at Ghaziabad, Mumbai
and Agra, mortgage of land/ premises owned by promoter directors and
their families situated at Gurgaon and Mumbai, pledge of part of
promoters shareholding in the Company and pledge of shares of
subsidiary Companies.
- Rs. 82,50,24,461/- are secured by way of mortgage of project land owned
by the Company and its subsidiaries situated at Agra, Indore and
Meerut, mortgage of building situated at Noida, mortgage of premises
situated at Delhi owned by promoter directors and their families,
assignment of receivables of Agra, Meerut and Indore projects and
pledge of part of promoters shareholding in the Company.
- Rs. 11,25,00,000/- are secured by way of mortgage of land owned by the
Company and its subsidiaries situated at Yamunanagar, assignment of
receivable of Yamunanagar Project.
3.3 Vehicle/ Equipment Loan from Bank/ Corporate Bodies referred above
are secured by way of hypothecation of respective vehicle/ construction
equipment.
3.4 Term Loan from Bank referred above to the extent of:
Rs. 9,98,00,000 have been guaranteed by the promoter directors.
Rs. 9,98,00,000 have been guaranteed by the subsidiary companies.
3.5 Term Loan from Corporate Bodies referred above to the extent of:
Rs. 1,58,75,24,461 have been guaranteed by the promoter directors.
Rs. 76,25,00,000 have been guaranteed by the subsidiary companies
Rs. 65,00,00,000 have been guaranteed by the relatives of promoter
directors.
3.6 Public Deposits referred above to the extent of:
Rs. 21,83,32,000 have been guaranteed by the chairman and managing
director.
NOTES:
4.1 Working Capital Loans from Scheduled Banks are secured by charge
over stocks of materials, unsold finished stock, construction
work-in-progress, book-debts of the Company.
4.2 Term Loan from Corporate Bodies are secured by way of mortgage of
project land owned by Collaborator at Gurgaon and extension of mortgage
of building located at Noida.
4.3 Working Capital Loan referred above to the extent of Rs.
67,28,39,669/- have been guaranteed by promoter directors.
4.4 Term Loan from Corporate Bodies referred above to the extent of Rs.
20,00,00,000/- have been guaranteed by promoter directors.
NOTES:
5.1 The Advances from Customers referred above includes Rs. 9,67,65,014/-
received from subsidiary Companies.
5.2 The Other payables referred above includes statutory dues, book
overdraft, commission payable to directors.
5.3 Other payables also includes Rs. 11,01,07,354/- payable to subsidiary
Companies.
NOTE 6 : CONTINGENT LIABILITIES AND COMMITMENTS (TO THE EXTENT NOT
PROVIDED FOR)
A) Contingent Liabilities
i) Guarantees
- Guarantees given by the Company to Banks/
Financial Institutions against credit
facilities extended to third parties.
(to the extent of outstanding Loan amount) 49,23,95,136 36,23,95,136
ii) Claims against the Company not
acknowledged as Debts
- Income Tax/ Wealth Tax demand
being disputed by the Company 4,65,09,090 4,46,25,110
- Sales Tax demand being
disputed by the Company 2,46,85,005 8,37,77,000
- Stamp Duty demand being
disputed by the Company 9,61,46,726 9,78,28,068
- Service Tax demand being
disputed by the Company 2,71,30,632 2,71,30,632
- Claims by customers for
refund of amount deposited/
Compensation/ Interest 5,51,86,256 3,45,24,217
- Other Claims against the Company not
acknowledged as debts 68,93,124 69,75,525
74,89,45,969 65,72,55,688
B) Capital and Other Commitments
i) Estimated amount of contracts remaining to be executed on capital
account (net of advances) and not provided for Rs. 26,21,205/- (Previous
year Rs. Nil)
ii) The Board of Directors of the Company, in the meeting held on
02.12.2011, approved buy back of 25,00,000 equity shares of Rs.10/- each
at a maximum price of Rs. 45/- per share for an amount not exceeding
Rs.11,25,00,000/-. During the year, the Company has bought back 1,78,272
shares. The balance commitment of the Company under buy-back scheme is
23,21,728 shares at a maximum price of Rs. 45/- per share.
iii) The Company has entered into joint development agreements with
owners of land for its construction and development. Under the
agreements, the Company is required to share in area/ revenue from such
development in exchange of undivided share in land as stipulated under
the agreements. As of March 31,2012 the Company has paid Rs.
32,19,43,125/- (Previous year Rs. 39,70,10,905/-) as refundable deposits
against the joint development agreements. Further, the Company has
given advances for purchase of land. Under the agreements executed with
the land owners, the Company is required to make further payments under
the agreements based on terms/ milestones stipulated under the
agreement.
7 In respect of block assessment for the period 1st April, 1989 to
10th February, 2000, Income Tax Appellate Tribunal (ITAT) has given
full relief to the Company and rejected department's ground of appeal,
for tax claim of Rs.1,27,06,760/- (Previous year Rs.1,27,06,760/-).
Further, in respect of assessment of certain years, demands had been
raised by the Income Tax Department against the Company amounting to Rs.
7,25,24,050/-( previous year Rs. 7,51,90,731/-) approx by disallowing
deduction under sections 80(IB) of the Income Tax Act, 1961. The
appeals filed by the Company have been decided in its favour by
CIT(Appeals)/ ITAT. The tax department has gone for further reference
in the above matters to ITAT / High Court. The Company has been legally
advised that it has a good case to succeed in the above matters.
8 Inventory of Land includes Rs.15,03,32,469/- (Previous year
Rs.20,06,41,591/-) acquired by subsidiary companies. The land is
registered in the name of the subsidiary companies but is under the
possession and control of the Company for development and sale of Real
Estate Projects in terms of collaboration agreement with these
companies.
9 The Company is engaged primarily in the business of Real Estate
development and also running Hospitality Business. However, there are
no separate reportable segments as per criterion set out under
Accounting Standard 17 on Segment Reporting in the Company. The Company
is operating in India, hence there is no reportable geographical
segment.
10 During the previous year, the company sold its entire shareholding
consisting of 48,00,000 equity shares of Rs.10/- each representing 40% of
investment in Capital Cars Pvt. Ltd. for a consideration of Rs.
12,82,68,093/-. Consequent to this sale, Capital Cars Pvt Ltd ceased to
be a joint venture of the company with effect from 29th September,
2010. The profit on sale of investment of Rs. 8,02,68,093/- lacs was
shown under " Other Income" in the Statement of Profit and Loss.
11 The Company has not received intimation from suppliers regarding the
status under Micro Small Medium Enterprises Development Act, 2006 and
hence disclosure, if any, relating to the amounts unpaid at the year
end together with interest payable as required under the said Act have
not been given.
Note : The Company has issued warrants to promoters of the Company
which are convertible into equity shares at the option of the holder
within 18 months of the allotment of warrants. Since the warrants have
been issued at fair value, these are considered neither dilutive nor
anti-dilutive and hence, these have not been considered in the
computation of diluted earnings per share in accordance with Accounting
Standard 20 on 'Earning Per Share'.
12 Buy-Back of Equity Shares
The Board of Directors of the Company, during their meeting held on
02.12.2011, approved the buy back of 25,00,000 equity shares of Rs.10/-
each at maximum price of Rs. 45/- per share for an amount not exceeding
Rs.11,25,00,000/- The Board decided to implement the buy-back offer
through the open market purchases in the Stock Exchanges.
Pursuant to the offer, the Company from January 25,2012 to March
31,2012, has bought back 1,78,272 equity shares of Rs.10/- each
aggregating to Rs. 75,80,530/-. The Company had extinguished 1,16,848
equity shares upto March 31,2012 and the balance 61,424 equity shares
were extinguished subsequent to the year end. Accordingly, Rs.17,82,720
has been reduced from paid-up equity share capital and in accordance
with the provisions of section 77A of the Companies Act, 1956, Rs.
57,97,810/- has been utilized from Securities Premium Account.
In terms of Section 77AA of the Companies Act, 1956, an amount of Rs.
17,82,720/- has been transferred to Capital Redemption Reserve.
13 Operating Lease
The Company has taken various residential / commercial premises under
cancelable operating leases. These leases are normally renewable on
expiry. The rental expenses in respect of operating leases amounting to
Rs. 5,53,13,402/- (previous year Rs. 4,91,00,046/-) has been charged to the
statement of profit and loss.
14 The disclosures of Employee Benefits as defined in Accounting
Standard 15 are given below:
A. Defined Benefit Plan
i) Gratuity: The employees' gratuity fund scheme managed by Trust is a
defined benefit plan. The present value of the obligation is determined
based on actuarial valuation using the Projected Unit Credit Method,
which recognizes 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.
ii) Leave Encashment- The company also has a leave encashment scheme
with defined benefits for its employees. The company makes provision
for such liability in books of accounts on the basis of year end
actuarial valuation. No fund has been created for this scheme.
NOTES:
15.1 The estimates of rate of escalation in salary considered in
actuarial valuation, take into account inflation, seniority, promotion
and other relevant factors including supply and demand in employment
market.
15.2 The Company has introduced leave encashment policy for its
employees in the current year. Hence there are no corresponding figures
for leave encashment in the previous year.
B. Defined Contribution Plan
The Company makes provident fund contribution to defined contribution
retirement benefit plan for its employees. Under the scheme, the
company deposits an amount determined as a specified percentage of
basic pay with the regional provident fund commissioner. Contribution
to defined contribution plan recognized as expense for the year is
Rs.1,11,57,053/- (Previous year Rs. 90,93,608/-).
16 Related Party Disclosures
As per Accounting Standard- 18, the disclosures of transactions with
related parties are given below: a) Names of the related parties where
control exists and related parties with whom transactions have taken
place and relationships:
1. Wholly Owned Subsidiaries M/s Geo Connect Ltd.
M/s Housing & Construction Lanka Pvt. Ltd.
M/s Maestro Promoters Pvt. Ltd.
M/s Wrangler Builders Pvt. Ltd.
M/s Anjuman Buildcon Pvt. Ltd.
M/s A R Infrastructure Pvt. Ltd.
M/s A R Paradise Pvt. Ltd.
M/s Fenny Real Estates Pvt. Ltd.
M/s Third Eye Media Pvt Ltd.
M/s Sunrise Facility Management Pvt. Ltd.
M/s Aevee Iron & Steel Works Pvt. Ltd.
M/s Enchant Constructions Pvt. Ltd.
M/s Rishu Builtech Pvt. Ltd.
M/s Sonu Buildwell Pvt. Ltd.
2. Key Management Personnel Mr. Deepak Ansal (Chairman & Managing
Director)
Mr. Kushagr Ansal (Whole Time Director)
Mr. Karun Ansal (President)
3. Relatives of Key Management Personnel Ms. Divya Ansal (wife of Mr.
Deepak Ansal)
M/s Deepak Ansal-(H.U.F)- (Karta Mr. Deepak Ansal)
Ms. Megha Ansal (wife of Mr. Kushagr Ansal)
Ms. Neha Ansal (wife of Mr. Karun Ansal)
4. Joint Venture M/s Capital Cars Pvt. Ltd.
(upto 29.09.2010, Refer Note No. 30)
5. Associates
5.1 Enterprise in which Key Management personnel having substantial
interest
M/s Infinet India Ltd.
M/s Akash Deep Portfolios Pvt. Ltd.
M/s Suraj Kumari Charitable Trust M/s Ansal Clubs Pvt. Ltd.
M/s Sungrace Security Services Pvt. Ltd.
M/s Snow White Cable Network Pvt. Ltd. M/s Global Consultant &
Designers Pvt. Ltd. M/s Glorious Properties Pvt. Ltd.
5.2 Enterprises in which relative of Key Management personnel having
substantial interest
M/s Ansal Buildwell Ltd.
Note:
During the previous year, the company sold its entire shareholding in
Capital Cars Pvt. Ltd. Consequently, the Capital Cars Pvt. Ltd. has
ceased to be a Joint Venture of the Company wef 29.09.2010 & hence the
share in Assets & Liabilities have not been shown.
17 The brief particulars other than quantitative details relating to
Hospitality Division are given below:
(a) Income from Food and Beverage and Other Services for the year
include income from Wine and Liquor Rs. 2,35,03,525/- (Previous Year Rs.
2,28,26,177/-).
(b) The break-up of consumption of Provisions, Beverages, Stores, Wines
& Smokes are as follows :
18 Previous year figures:
Till the year ended 31st March 2011, the Company was using pre-revised
Schedule-VI to the Companies Act, 1956, for preparation and
presentation of its financial statements. During the year ended 31st
March 2012, the revised Schedule-VI notified under the Companies Act,
1956, has become applicable to the Company. The Company has
re-classified previous year figures to conform to this year's
classification. The adoption of revised Schedule-VI doesn't impact
recognition and measurement principles followed for preparation of
financial statements. However, it significantly impacts presentation
and disclosure made in the financial statements particularly
presentation of Balance Sheet.
Mar 31, 2011
1. Contingent Liabilities (Rs. in lacs)
As at As at
31st March, 31st March,
2011 2010
a) Guarantees given by the Company in 4,375.74 3960.00
favour of Banks/Financial Institutions
on behalf of other companies
b) Income Tax / Wealth tax demands 446.25 453.31
being disputed by the Company
c) Sales tax demands being disputed 837.77 115.51
by the Company
d) Stamp duty demands being disputed 978.28 1,071.42
by the Company
e) Claims by customers for refund 345.24 663.09
of amount deposited/Compensation/
Interest
f) Other Claims against the Company 69.75 69.75
not acknowledged as debts
g) The Company has received a demand Rs. 271.31 lacs from Service Tax
department vide order dated 28 April, 2011 levying service tax on
transfer charges / administrative charges / processing charges received
from customers for the period 1.10.2003 to 31.03.2010. The Company is
in the process of fling appeal against the said order of the
department. The Company has been advised that it has a good case to get
the demand set aside.
2. In respect of block assessment for the period 1st April, 1989 to
10th February, 2000, Income Tax Appellate Tribunal (ITAT ) has given
full relief to the Company and rejected departmentÃs ground of appeal
for tax claim of Rs. 127.06 lacs (Previous year Rs. 144.63 lacs).
Further, in respect of assessment of certain years, demands had been
raised by the Income Tax Department against the Company amounting to
Rs. 751.91 lacs (Previous year Rs. 559.88 lacs) approx by disallowing
deduction under section 80(IB) of the Income Tax Act, 1961. The appeals
fled by the Company have been decided in its favour by CIT(Appeals)/
ITAT. The tax department has gone for further reference in the above
matters to ITAT / High Court. The Company has been advised that it has
a good case to succeed in the above matters.
3. Estimated amount of contracts remaining to be executed on capital
account (net of advances) and not provided for Rs. Nil (previous year
Rs. 20.44 lacs).
4. Inventory of Land includes Rs. 2,006.42 lacs (Previous year Rs.
2,266.66 lacs) acquired by subsidiary companies out of advances
provided by the Company. The land is registered in the name of the
subsidiary companies but is under the possession and control of the
Company for development and sale of Real Estate Projects in terms of
collaboration agreement with these companies.
5. The Company has advanced Rs. 751.02 lacs (Previous year Rs. 820.97
lacs) to certain Companies/ Collaborators for purchase of land parcels.
The Company is currently in the process of finalizing the deals for
purchase of land and the agreements will be signed shortly. Management
is confident that these advances are good and recoverable.
6. Advances amounting to Rs. 332.50 lacs (Previous year Rs. 809.47
lacs) have been paid to collaborators and others towards land
owned/acquired/to be acquired by them. A review is being taken up to
ascertain the feasibility of these projects under the present market
conditions. Considering the present market value of the land involved
in collaboration arrangements, the management is of the view that no
material loss will arise on completion of the review exercise.
7. The Company had received advance against booking of plots/fats in
earlier years from Geo Connect Ltd (GCL), a wholly owned subsidiary for
certain projects. Due to delay in project at Amritsar, the company has
agreed to refund Rs. 10.00 crores (Previous year Rs. 10.00 crores)
along with interest @15% p.a. to GCL. Interest payable to GCL for the
period 24.01.2008 to 10.03.2011 amounting to Rs. 468.90 lacs (Previous
year Rs. 287.26 lacs) has been charged to Profit and Loss account as
interest expense for the year.
8. During the year, the company sold its entire shareholding
consisting of 48,00,000 equity shares of Rs. 10/- each representing 40%
of investment in Capital Cars Pvt. Ltd. for a consideration of Rs.
1,282.68 lacs. Consequent to this sale, Capital Cars Pvt Ltd ceased to
be a joint venture of the company with effect from 29th September,
2010. The profit on sale of investment of Rs. 802.68 lacs has been
shown under " Other Income" in the Profit & Loss Account.
9. Operating Lease:
The Company has taken various residential / commercial premises under
cancelable operating lease. These leases are normally renewable on
expiry. The rental expenses in respect of operating leases amounting to
Rs. 491.00 Lacs (previous year Rs. 537.16 Lacs) has been charged to the
profit and loss account.
10. The Company has not received intimation from suppliers regarding
the status under Micro Small Medium Enterprises Development Act, 2006
and hence disclosure, if any, relating to the amounts unpaid at the
year end together with interest payable as required under the said Act
have not been given.
11. a) Details of Managerial Remuneration
* In Current year, salary as approved by shareholders has been drawn by
directors. In the Previous years, directors had drawn less salary to
the extent of Rs. 51.84 lacs by foregoing increments due to prevailing
recession in the market.
12. The disclosures of Employee Benefits as defined in Accounting
Standard 15 are given below: Defined Benefit Plan
The employees' gratuity fund scheme managed by Trust is a defined
benefit plan. The present value of the obligation is determined based
on actuarial valuation using the Projected Unit Credit Method, which
recognizes each period of service as giving rise to additional unit of
employee benefit entitlement and measures each unit seperately to build
up the final obligation.
V Acturial Assumptions
Note:
The estimates of rate of esclation in salary considered in acturial
valuation, take into account inflation, seniority, promotion and other
relevant factors including supply and demand in employment market.
13. Related Party Disclosures
a) Names of the related parties and description of relationship :
1. Wholly Owned Subsidiaries M/s Geo Connect Ltd.
(Formerly known as Callnet
India Ltd.)
M/s Housing & Construction Lanka
Pvt. Ltd.
M/s Maestro Promoters Pvt. Ltd.
M/s Wrangler Builders Pvt. Ltd.
M/s Anjuman Buildcon Pvt. Ltd.
M/s A R Infrastructure Pvt. Ltd.
M/s A R Paradise Pvt. Ltd.
M/s Fenny Real Estates Pvt. Ltd.
M/s Third Eye Media Pvt Ltd.
M/s Sunrise Facility Management
Pvt. Ltd.
M/s Aevee Iron & Steel Works
Pvt. Ltd.
M/s Enchant Constructions Pvt.Ltd.
M/s Rishu Buildtech Pvt. Ltd.
M/s Sonu Buildwell Pvt. Ltd.
2. Key Management Personnel Mr. Deepak Ansal (Chairman and
Managing Director)
Mr. Kushagr Ansal (Whole Time
Director)
Mr. Karun Ansal (President)
3. Relatives of Key Mrs. Divya Ansal (wife of Mr.
Management Personnel Deepak Ansal)
(With whom transaction taken M/s Deepak Ansal (H.U.F.)-
place during the year) (Karta Mr. Deepak Ansal)
Mrs. Megha Ansal (wife of
Mr. Kushagr Ansal)
4. Joint Venture M/s Capital Cars Pvt. Ltd.
(upto 29.09.2010, Refer Note No.8)
5. Associates
5.1 Enterprise in which Key M/s Infinet India Ltd.
Management personnel having M/s Akash Deep Portfolios Private
substantial interest Ltd.
5.2 Enterprises in which relative M/s Ansal Properties &
of Key Management Infrastructure Ltd.
personnel having substantial M/s Ansal Buildwell Ltd.
interest M/s Suraj Kumari Charitable Trust
M/s Ansal Clubs Pvt. Ltd.
M/s Moonlight Electric Company
Private Ltd.
M/s Sungrace Security Services
Private Ltd.
M/s Snow White Cable Network
Private Ltd.
M/s Global Consultant & Designers
Private Ltd.
M/s Glorious Properties Private
Ltd.
14. Particulars of Earning per share (Basic & Diluted)
Note: The Company has issued warrants to promoters of the Company which
are convertible into equity shares at the option of the holder within
18 months of the allotment of warrants. Since the warrants have been
issued at fair value, these are considered neither dilutive nor
anti-dilutive and hence, these have not been considered in the
computation of diluted earnings per share in accordance with Accounting
Standard 20 on ÃEarning Per Share'.
15. Disclosure in respect of Company's Joint Venture entity in India
pursuant to Accounting Standard 27 ' Financial Reporting of Interests
in Joint Ventures' issued by the Institute of Chartered Accountants of
India.
c) During the year, the company sold its entire shareholding in Capital
Cars Pvt. Ltd. Consequently, the Capital Cars Pvt. Ltd. has ceased to
be a Joint Venture of the Company wef 29.09.2010 & hence the share in
Assets & Liabilities have not been shown.
16. Information pursuant to Part-II of Schedule-VI to the Companies
Act,1956.
* Quantities issued to Contractors on recoverable basis are not treated
as consumption ** Items being too many, quantitative details are not
practicable.
17. The brief particulars other than quantitative details relating to
Hospitality Division are given below:
(a) Income from Food and Beverage and Other Services for the year
include income from Wine and Liquor Rs. 228.26 lacs (Previous Year Rs.
214.39 lacs).
18. The Company is engaged primarily in the business of Real Estate
development and also running Hospitality Business. However, there are
no separate reportable segments as per criterion set out under
Accounting Standard 17 on Segment Reporting in the Company. The Company
is operating in India, hence there is no reportable geographical
segment.
19. Previous Year figures have been regrouped/rearranged wherever
considered necessary, to make them comparable with Current Year's
figures.
Mar 31, 2010
1. Contingent Liabilities ( Rs. in lacs)
As at As at
31st March,
2010 31st March,
2009
a) Guarantees given by the Company in
favour of Banks/Financial
Institutions on behalf of other companies 3960.00 2500.00
b) Other Claims against the Company not
acknowledged as debts 566.53 117.75
c) Claims by customers for refund of
amount deposited / Interest 663.09 618.47
d) Estimated amount of contracts remaining
to be executed on capital
account (net of advances) and not provided
for Rs. 20.44 Lacs (previous
year Rs. Nil lacs).
e) Income Tax / Wealth Tax demand being disputed by the company Rs.
453.31 lacs (Previous year Rs. 281.67 lacs). The Company has been legally
advised that it has a good case to succeed are hence no provision has
been considered necessary.
f) i) The Assessing Ofcer vide order dated 18.03.2008 passed under UP
Sales Tax Act has levied additional sales tax of Rs. 31.50 lacs
(Previous year Rs. 31.50 lacs) on sale of fats/ houses to customer on
Installment basis for the year 2004- 05. The Appeal before Jt.
Commissioner, Commercial Tax, Ghaziabad against this order was rejected
vide Order No. 268 dt. 07.06.2008. Now, the Company has moved appeal
before Tribunal, Commercial Tax, Ghaziabad against this order and stay
order has been received from this authority.
ii) The Assessing Ofcer vide order dated 19.03.2008 passed under UP
Sales Tax Act has levied additional sales tax of Rs. 20.37 lacs
(Previous year Rs. 20.37 lacs) on sale of fats/ houses to customer on
Installment basis for the year 2003-04.
The Company has moved appeal before Tribunal, Commercial Tax, Ghaziabad
against this order. iii) The Assessing Ofcer vide order dated
09.02.2010 passed under UP Sales Tax Act has levied additional sales
tax of Rs. 63.64 lacs (Previous year Rs. Nil lacs) on sale of fats/
houses to customer on Installment basis for the year 2005-06.
The Company has moved appeal before Tribunal, Commercial Tax, Ghaziabad
against this order. g) Uttar Pradesh Revenue Authorities have demanded
Rs. 574.64 lacs (Previous year Rs. 574.64 lacs) towards defciency in Stamp
Duty on allotment of land to the company on leasehold basis by UP State
Industrial Development Corporation Ltd. Against these demands the
company has paid Rs. 46.46 lacs (Previous year Rs. 46.46 lacs) under
protest and the balance demand has been stayed by the Honble High
Court / Board of Revenue. Pending decision, no provision has been
considered necessary. h) The Company has received a demand cum show
cause notice dated 22.04.09 and 09.04.10 from the service tax
department proposing a levy of service tax of Rs. 129.16 lacs on transfer
charges / administrative charges / processing charges received from
customers. The Company has fled its reply with the department. The
Company has been legally advised that it has a good case and no demand
is likely to arise in this matter and hence no provision has been
considered necessary.
2. During the year, the Company has acquired 10,000 Equity Shares
(Total Share Capital: 10,000 Equity Shares) of M/s Rishu Builtech
Private Ltd. and 10,000 Equity Shares (Total Share Capital: 10,000
Equity Shares) of M/s Sonu Buildwell Private Ltd., as a result of which
these Companies have become wholly owned subsidiaries of the Company.
3. Inventory of Land includes Rs. 2266.66 lacs (Previous year Rs. 2240.17
lacs) acquired by subsidiary companies out of advances provided by the
Company. The land is registered in the name of the subsidiary companies
but is under the possession and control of the Company for development
and sale of Real Estate Projects in terms of collaboration agreement
with these companies.
4. The Company has advanced Rs. 820.97 lacs (Previous year Rs. 1176.97
lacs) to certain Companies/ Collaborators for purchase of land parcels.
The Company is currently in the process of fnalizing the deals for
purchase of land and the agreements will be signed shortly. Management
is confdent that these advances are good and recoverable.
5. Advances amounting to Rs. 809.47 lacs (Previous year Rs. 1117.76 lacs)
have been paid to collaborators and others towards land
owned/acquired/to be acquired by them. A review is being taken up to
ascertain the feasibility of these projects under the present market
conditions. Considering the present market value of the land involved
in collaboration arrangements, the management is of the view that no
material loss will arise on completion of the review exercise.
6. With efect from 1st April, 2009, the Company has changed the method
of accounting for costs incurred in respect of i) project specifc
advertisement, publicity, business promotion ii) administration and
payroll expenses incurred for marketing staf and iii) brokerage paid to
dealers which were being accounted for as project costs and debited to
Work-in- Progress. The expenses incurred on above items from 1st April,
2009 amounting to Rs. 1088.58 lacs have been charged of to Proft and Loss
Account. The consequential impact of above change on percentage
completion, revenue recognition and proft for the year is not
quantifable.
7. In respect of block assessment for the period 1st April, 1989 to
10th February, 2000, Income Tax Appellate Tribunal (ITAT ) has given
full relief to the Company and rejected departmentÃs ground of appeal
for tax claim of Rs. 144.63 lacs. Further, in respect of assessment of
certain years, demands had been raised by the Income Tax Department
against the Company amounting to Rs. 559.88 lacs approx by disallowing
deduction under sections 80(IB) of the Income Tax Act, 1961. The
appeals fled by the Company have been decided in its favour by
CIT(Appeals)/ ITAT. The tax department has gone for further reference
in the above matters to ITAT / High Court. The Company has been legally
advised that it has a good case to succeed in the above matters.
8. The Company had received advance against booking of plots/fats in
earlier years from Geo Connect Ltd (GCL), a wholly owned subsidiary for
certain projects. Due to delay in project at Amritsar, the company has
agreed to refund Rs. 10 crores along with interest @15% p.a. to GCL.
Interest payable to GCL for the period 4.2.2008 to 4.1.2010 amounting
to Rs. 287.26 lacs has been charged to Proft and Loss account as interest
expense for the year.
9. Operating Lease:
The Company has taken various residential / commercial premises under
cancelable operating lease. These leases are normally renewable on
expiry. The rental expenses in respect of operating leases amounting to
Rs. 537.16 Lacs (previous year Rs. 468.61 Lacs) has been charged to the
proft and loss account.
10. The Company has not received intimation from suppliers regarding
the status under Micro Small Medium Enterprises Development Act, 2006
and hence disclosure, if any, related the amounts unpaid at the year
end together with interest payable as required under the said Act have
not been given.
11. On settlement of dispute with certain parties, the outstanding
liabilities/ advance received in earlier years has been settled in
current year by allotment of fats resulting in increase in sales by Rs.
985.52 lacs and proft by Rs. 400.07 lacs.
12. The disclosures of Employee Benefts as defned in Accounting
Standard 15 are given below: Defned Beneft Plan
The employees gratuity fund scheme managed by Trust is a defned beneft
plan. The present value of the obligation is determined based on
actuarial valuation using the Projected Unit Credit Method, which
recognizes each period of service as giving rise to additional unit of
employee beneft entitlement and measures each unit seperately to build
up the fnal obligation.
13. Related Party Disclosures
a) Names of the related parties and description of relationship 1.
Wholly Owned Subsidiaries
M/s Geo Connect Ltd. (Formerly known as Callnet India Ltd.)
M/s Housing & Construction Lanka Pvt. Ltd.
M/s Maestro Promoters Pvt. Ltd.
M/s Wrangler Builders Pvt. Ltd.
M/s Anjuman Buildcon Pvt. Ltd.
M/s A R Infrastructure Pvt. Ltd.
M/s A R Paradise Pvt. Ltd.
M/s Fenny Real Estates Pvt. Ltd
M/s Third Eye Media Pvt Ltd.
M/s Sunrise Facility Management Pvt. Ltd.
M/s Aevee Iron & Steel Works Pvt. Ltd.
M/s Enchant Constructions Pvt. Ltd.
M/s Rishu Buildtech Pvt. Ltd.
M/s Sonu Buildwell Pvt. Ltd.
2. Key Management Personnel
Mr. Deepak Ansal (Chairman & Managing Director) Mr. Kushagra Ansal
(Whole Time Director) Mr. Karun Ansal (President)
3. Relatives of Key Management Personnel
(With whom transaction taken place during the year)
Mrs. Divya Ansal (wife of Mr. Deepak Ansal)
M/s Deepak Ansal (H.U.F.)- (Karta Mr. Deepak Ansal)
Mrs. Megha Ansal (wife of Mr. Kushgra Ansal)
4. Joint Venture
M/s Capital Cars Pvt. Ltd.
5. Associates
5.1 Enterprise in which Key Management personnel having substantial
interest
M/s Infnet India Ltd.
M/s Akash Deep Portfolios Private Ltd.
5.2 Enterprises in which relative of Key Management personnel having
substantial interest
M/s Ansal Properties & Infrastructure Ltd.
M/s Ansal Buildwell Ltd.
M/s Suraj Kumari Charitable Trust
M/s Ansal Clubs (P) Ltd.
M/s Moonlight Electric Company Private Ltd.
M/s Sungrace Security Services Private Ltd.
M/s Snow White Cable Network Private Ltd.
M/s Global Consultant & Designers Private Ltd.
M/s Glorious Properties Private Ltd.
14. The Company is engaged primarily in the business of Real Estate
development and also running Hospitality Business. However, there are
no separate reportable segments as per criterion set out under
Accounting Standard 17 on Segment Reporting in the Company. The Company
is operating in India, hence there is no reportable gegraphical
segment.
15. Previous Year fgures have been regrouped/rearranged wherever
considered necessary, to make them comparable with Current Years
fgures.