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Notes to Accounts of Arihant Foundations & Housing Ltd.

Dec 31, 2014

1. COMPANY OVERVIEW

The company, Arihant Foundations and Housing Ltd was incorporated on 6th March, 1992. The Company is engaged in the business of real estate development of residential, commercial complexes and IT Parks.

2. CONTINGENT LIABILITIES, PROVISIONS AND CONTINGENT ASSETS

i) Sales tax liability, if any on works contracts carried out by the company is considered by management as not material but if any liability arises it will be recovered from customers

ii) The income tax department has filed appeal against the order of the CIT (Appeal) before the income tax apellate tribunal for various assessment years which is as follows:-

Period to which the Amount (Rs) amount relates

2004- 2005 13,71,638/-

2005- 2006 53,23,956/-

2007-2008 1,19,53,006/-

2009-2010 5,53,07,850/-

iii) Amount of service tax under dispute: R.23,16,081/- pertaining to period october 2004 to march 2007 (Previous year: R.23,16,081/- for the period october 2004 to march 2007). Stay has been granted by the CESTAT. If the appeal is disallowed it may result in penalty of equivalent amount.

Contingent Asset :

iv) The company may receive interest on amounts paid by it for various appeals which are pending before ITAT.

Notes:

1. The Company does not expect any reimbursements in respect of the above contingent liabilities.

2. It is not practicable to estimate the timing of cash outflows, if any, in respect of matters stated above pending resolution of the arbitration/appellate proceedings.

3. SEGMENT REPORTING

The company is primarily in the business of real estate development and related activities including construction. Major exposure is to residential and commercial construction and development of IT parks. Further majority of the business conducted is within the geographic boundaries of India.

In view of the above, in the opinion of the Management and based on the organizational and internal reporting structure, the company''s business activities as described above are subject to similar risks and returns. Further, since the business activities undertaken by the company are within India, in the opinion of the Management, the environment in India is considered to have similar risks and returns. Consequently the company''s business activities primarily represent a single business segment. Similarly, this business operations in India represent a single geographical segment.

4. RELATED PARTY DISCLOSURES

A) Name of the related party and nature of relationship where control exists

Wholly owned subsidiaries Joint Venture Entities Vaikunt Housing Limited Arihant Unitech Realty Projects limited Arihant Griha Limited Arihant Indo African Infra Developers and Builders Private limited Trasperent Heights Real Escapade Real Estate Private Estate Limited limited Varenya Constructions Limited Northtown Estates Private limited Arihant Foundations Arihant Foundations & Housing Arihant Heirloom

B) Name and relationship of related parties where transaction exists:

Wholly owned subsidiaries Joint Venture Entities Vaikunt Housing Limited Arihant Unitech Realty Projects limited Arihant Griha Limited Arihant Indo African Infra Developers and Builders Private limited Trasperent Heights Real Escapade Real Estate Private Estate Limited limited Varenya Constructions Limited Northtown Estates Private limited Arihant Foundations Arihant Foundations & Housing Arihant Heirloom

Key Management Personnel

Name Designation

Mr. Kamal Lunawath Chairman and Managing Director Mr. Vimal Lunawath CFO & Whole time Director Mr. Bharat Jain Whole time Director

Individuals owning directly or indirectly, an interest in the voting power of the reporting enterprise and relatives of any such individual:

Mrs. Snehalatha Lunawath Mrs. Preethi Lunawath Mrs. Kavita Lunawath


Sep 30, 2013

1. interest inCome

Interest from Arihant Indo African Infra Developers & Builders Private Limited has accrued only for frst quarter. However, for the balance period, income recognition has been deferred because there is no certainty as to its collection. The said treatment is in conformity with Accounting Standard 9 Revenue Recognition.

2. Contingent LiABiLities, ProVisions And Contingent Assets

i) Sales tax liability, if any on works contracts carried out by the company is considered by management as not material but if any liability arises it will be recovered from customers

ii) The income tax department has filed appeal against the order of the CIT (Appeal) before the income tax apellate tribunal for various assessment years which is as follows:-

3. segment rePorting

The company is primarily in the business of real estate development and related activities including construction. Major exposure is to residential and commercial construction and development of IT parks. Further majority of the business conducted is within the geographic boundaries of India.

In view of the above, in the opinion of the Management and based on the organizational and internal reporting structure, the company''s business activities as described above are subject to similar risks and returns. Further, since the business activities undertaken by the company are within India, in the opinion of the Management, the environment in India is considered to have similar risks and returns. Consequently the company''s business activities primarily represent a single business segment. Similarly, this business operations in India represent a single geographical segment.

4. a) ConserVAtion oF energY And teChnoLogY ABsorPtion

The company does not own any manufacturing facility. Hence, the requirements pertaining to disclosure of particulars relating to conservation of energy, technology absorption as prescribed under the Companies (Disclosure of particulars in the report of board of directors) Rules, 1988, are not applicable. However, the company has commissioned a device named power factor, which reduces the consumption of energy. The company has also taken intiative to reduce the power and fuel consumption.


Sep 30, 2012

COMPANY OVERVIEW

The company, Arihant Foundations and Housing Ltd was incorporated on 6th March, 1992. The Company is engaged in the business of real estate development of residential, commercial complexes and IT Parks.

1 CONTINGENT LIABILITIES, PROVISIONS AND CONTINGENT ASSETS

i) Sales tax liability, if any on works contracts carried out by the company is considered by management as not material but if any liability arises it will be recovered from customers.

ii) The income tax department has filed appeal against the order of the CIT (Appeal) before the income tax apellate tribunal for Asst Yr: 2004-2005, 2005-2006, 2007-2008 and 2009-2010

iii) Amount of service tax under dispute: Rs.23,16,081/- pertaining to period october 2004 to march 2007 (Previous year: Rs.23,16,081/- for the period october 2004 to march 2007)

iv) HUDCO has filed a counter suit against the order of DRT to increase the interest rate payable from 9%. As such, the interest liability of the company may be increased

v) The company may receive interest on amounts paid by it for various appeals which are pending.

Notes:

1. The Company does not expect any reimbursements in respect of the above contingent liabilities.

2. It is not practicable to estimate the timing of cash outflows, if any, in respect of matters stated above pending resolution of the arbitration/appellate proceedings

2. SEGMENT REPORTING

The company is primarily in the business of real estate development and related activities including construction. Major exposure is to residential and commercial construction and development of IT parks. Further majority of the business conducted is within the geographic boundaries of India.

In view of the above, in the opinion of the Management and based on the organizational and internal reporting structure, the company''s business activities as described above are subject to similar risks and returns. Further, since the business activities undertaken by the company are within India, in the opinion of the Management, the environment in India is considered to have similar risks and returns. Consequently the company''s business activities primarily represent a single business segment. Similarly, this business operations in India represent a single geographical segment.

3 a) CONSERVATION OF ENERGY AND TECHNOLOGY ABSORPTION

The company does not own any manufacturing facility. Hence, the requirements pertaining to disclosure of particulars relating to conservation of energy, technology absorption as prescribed under the Companies (Disclosure of particulars in the report of board of directors) Rules, 1988, are not applicable. However, the company has commissioned a device named power factor, which reduces the consumption of energy. The company has also taken intiative to reduce the power and fuel consumption.

4 The exceptional item of Rs. 2,80,03,796/- as shown in the statement of profit and loss for the year ended 30th Sep- tember, 2012 represents the provision created against the interest income.

5 PREVIOUS YEAR FIGURES

Previous year figures have been regrouped, rearranged and reclassified wherever considered necessary.

6 PRIOR YEAR COMPARATIVES

Till the year ended 30th September, 2011, the company was following pre-revised schedule VI to the Companies Act 1956, for the preparation and presentation of financial statements. During the year ended 30th Septemper, 2012, the revised schedule VI notified under the Act has become applicable to the company. The company has reclassified previous year figures to conform to this year''s clasification as per revised schedule VI. The adoption of revised schedule VI does not impact recognition and measurement principles followed by the company for the preparation of financial statements. However, it significantly impacts presentation and disclosures made in the financial statements. Consequently, prior year figures are not comparable to those which are as per the revised schedule VI requirements.


Sep 30, 2011

1. SHARE CAPITAL AND SHARE WARRANTS

On 05th August, 2009, the Company has allotted 15,50,000 convertible equity warrants to Persons forming part of Promoter Group and a Body Corporate on preferential basis at a total exercise price of Rs.89/-(including premium of Rs.79/-). These warrants were allotted in accordance with SEBI (Issue of Capital & Disclosure Requirements) Regulations, 2009. At the time of allotment of the aforesaid convertible equity warrants, the Company has received 25% of total exercise price, Rs.22.25 per convertible equity warrants to the tune of Rs.3,44,87,500/-. On 16th March, 2010, Persons forming part of Promoter Group has converted 4,30,000 convertible equity warrants in to equal no. of fully paid up equity shares on payment of balance exercise price of Rs.66.75/- per convertible equity warrants and were allotted 4,30,000 fully paid up equity shares. The said allotment has resulted in to increase the paid up share capital of the Company from 70,50,000 equity shares of Rs. 10/- each to 74,80,000 fully paid up equity shares of Rs.10/- each.

During the year on 03.02.2011, the persons forming part of promoter group and a body corporate have converted outstanding 11,20,000 convertible equity warrants in to equal no. of fully paid up equity shares on payment of balance exercise price of Rs.66.75/- per convertible equity warrants and were allotted 11,20,000 fully paid up equity shares. The said allotment has resulted in to increase the paid up share capital of the Company from 74,80,000 fully paid up equity shares of Rs.10/- each to 86,00,000 fully paid up equity shares of Rs.10/- each.

The total proceeds from the aforementioned preferential issue have been utilized in Company's Project.

2. LIABILITIES AND ASSETS

Sundry Debtors, Sundry Creditors and loans and advances are subject to confirmation.

3. SECURED LOANS

Nature of Security.

Term Loans / Project loans from Banks and Financial Institutions are secured by hypothecation of fxed assets, current assets and mortgage of certain lands and projects of the Company and its Subsidiaries. The said loan further secured by personal guarantees of Managing Director and whole time Director.

The above joint venture entities are incorporated in India. The Company's share of the assets and liabilities as on 30.09.2011 and income and expenses for the year in respect of joint venture entities based on audited/ unaudited accounts are considered for consolidation.

Individuals owning directly or indirectly, an interest in the voting power of the reporting enterprise and relatives of any such individual:

a) Conservation of Energy:

For the purpose of conservation of energy, the company has commissioned a device named Power factor, which reduces the consumption of energy. The company has also taken initiative to reduce the power and fuel consumption.

d ) Quantitative Information

Quantitative and other disclosures as require by the paragraph 3(ii) of Schedule VI to the companies Act 1956 are not provided. The company is engaged in the business Of real estate development. The company has applied for obtaining an exemption with regard to the aforementioned disclosures.

4. DIVIDEND FOR PREVIOUS YEAR

The proposed final dividend for the previous year was Rs. 74,80,000. However the shareholders of the Company at the AGM held on 31.03.2011 had not approved the payment of the same. The aforesaid Proposed Dividend has been added back to Reserves during the current year.

5. Previous year figures have been regrouped/ rearranged wherever necessary in the balance sheet.

6. SCHEDULE TO ACCOUNTS

Schedule I to XVIII form an integral part of the balance sheet and profit & loss account and are duly authenticated.

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