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Notes to Accounts of Arihant Superstructures Ltd.

Mar 31, 2015

1 Corporate information

Arihant Superstructures Ltd. is registered under companies act, 1956 as public limited company. The company's registered office is located at 302, Persipolis Building Plot No. 74, Sector 17, Vashi, Navi Mumbai - 400703 and its registered office is situated in the state of Maharashtra, i.e. within the jurisdiction of the Registrar of Companies, Maharashtra, at Mumbai. The operation of the company span in all aspect of real estate development, from the identification and acquisition of land, planning, execution, construction and marketing of projects.


Mar 31, 2014

1 Corporate information

Arihant Superstructures Ltd. is registerd under companies act, 1956 as public limited company. The company''s registered office is located at 302, Persipolis Building Plot No. 74, Sector 17, Vahi, Navi Mumbai - 400703 and its registered office is situated in the state of Maharashtra, i.e. within the jurisdiction of the Registrar of Companies, Maharashtra, at Mumbai. The operation of the company span in all aspect of real estate development, from the identification and acquisition of land, planning, execution, construction and marketing of projects.

2. Note :

1. Term Loan from ICICI Bank is secured against land (with all the buildings and structures thereon) at admeasuring about 3949.41 sq.mtrs. Bearing plot no. 4, sector 24, village taloja, taluka panvel, district thane.

2. Term Loan from HDFC Bank is secured against land bearing (i) survey no. 27, hissa no. 2A/1, (ii) survey no. 27, hissa no. 2A/2, (iii) survey no. 25, hissa no. 2 being at village koproli, taluka panvel, district raigad together with construction thereon present and future.

3. Term Loan from Federal Bank is secured against land (with all the buildings and structures thereon) at admeasuring about 192786 sq.mtrs. Bearing plot no. 6, 7, 8 & 9 at pal link road, dev nagar, jodhpur, rajasthan.

4. Vehicles loans are secured against the vehicle itself.


Mar 31, 2013

1 CORPORATE INFORMATION

Arihant Superstructures Limited (the company) is a public company domiciled in India and incorporated under the provi- sions of the Companies Act, 1956. The company is engaged primarily in the business of Real Estate Development, Trading in Real Estate and Construction Contracts. The operations of the Company span in all aspects of real estate development, from the identification and acquisition of land, planning, execution, construction and marketing of projects.

2 BASIS OF PREPARATION

The financial statements of the company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The company has prepared these financial statements to comply in all material respects with the accounting standards notified under the Companies (Accounting Standards) Rules, 2006, (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on an accrual basis and under the historical cost convention.

The accounting policies adopted in the preparation of financial statements are consistent with those of previous year

3 CONTINGENT LIABILITIES

The Company has guaranteed borrowings (Term Loan) of one of its subsidiary Company, M/S Arihant Technoinfra Private Limited for Rs. 16,60,00,000/-

4 UTILIZATION OF MONEY RAISED THROUGH RIGHT / PREFERENTIAL ISSUE OF EQUITY SHARES

During the year ended 31 March 2013, the company has raised Rs. 164,639,964/- through Right issue of equity shares for the Purpose of Project Arihant Agrima , the details of utilization of proceeds raised through right issue.

5 There are no suppliers who are registered as micro, small or medium enterprises under "The Micro, Small and Medium Enterprises Development Act, 2006" as at March 31, 2013.

6 SEGMENT INFORMATION

The Company operates in a single business and geographical segment i.e. "Construction and Allied Activities" within India. Accordingly, no separate disclosures for primary business and secondary geographical segment are required as per AS 17 issued by ICAI.

7 There are no commitments outstanding as on the Balance Sheet date.

8 In the opinion of the management; current assets, loans, advances and deposits are approximately of the value stated, if realised in the ordinary course of business. The provision of all known liabilities is adequate and not in excess of the amount reasonably necessary.

9 Balances of certain sundry debtors, sundry creditors, loans and advances are subject to confirmations / reconciliation and consequential adjustments, if any. The management does not expect any material difference affecting the current year''s Financial Statements on such reconciliation / adjustments.

10 Previous year figures have been regrouped and rearranged wherever necessary to confirm with the current year presentation.


Mar 31, 2012

1 CORPORATE INFORMATION

Arihant Superstructures Limited (the company) is a public company domiciled in India and incorporated under the provisions of the Companies Act, 1956. The company is engaged primarily in the business of Construction Contracts, Trading in Real Es tate and Real Estate Development. The operations of the Company span all aspects of real estate development, from the identification and acquisition of land, planning, execution, construction and marketing of projects.

2 BASIS OF PREPARATION

The financial statements of the company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The company has prepared these financial statements to comply in all material respects with the accounting standards notified under the Companies (Accounting Standards) Rules, 2006, (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on an accrual basis and under the historical cost convention.

The accounting policies adopted in the preparation of financial statements are consistent with those of previous year, except for the change in accounting policy explained below.

a. 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 company declares and pays dividend in INR. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

During the year ended 31 March 2012, the amount of per share dividend recognised as distributions to equity shareholders was Rs.0.20 (31 March 2011 : Rs. 0.30).

In the event of liquidation of the company, the holders of equity shares will 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 equity shares held by the shareholders.

3 CONTINGENT LIABILITIES

The Maharashtra Chamber of Housing Industry (MCHI) had filed writ petition in Bombay High Court challenging the levy of MVAT w.e.f. June 20, 2006 under the Maharashtra Value Added Tax Act, 2002 on property under construction, which has been recently dismissed by the High Court. Under the premises ownership agreement / letter of allotment entered into by the Company, such liability ultimately needs to borne by the purchaser of the premises, for which the purchaser have created lien on bank deposit or has given bank guarantees / registered undertakings and / or adequately indemnfied the Company and hence no provision had been made in the books for the agreements registered prior to 01.04.2010.

4 SEGMENT INFORMATION

The Company operates in a single business and geographical segment i.e. "Construction and Allied Activities" within India. Accordingly, no separate disclosures for primary business and secondary geographical segment are required as per AS 17 issued by ICAI.

5 SUBSEQUENT EVENT

On 31st May 2012 the company alloted/issued 1,37,19,997 Equity Shars of Rs. 12 each (including premium of Rs.2 each) on Rights basis in the ratio of 1 equity shares for every 2 equity shares held for the purpose of Project Arihant Agrima.

6 In the opinion of the management; there are no commitments outstanding as on the Balance Sheet date.

7 In the opinion of the management; current assets, loans, advances and deposits are approximately of the value stated, if realised in the ordinary course of business. The provision of all known liabilities is adequate and not in excess of the amount reasonably necessary.

8 Balances of certain sundry debtors, sundry creditors, loans and advances are subject to confirmations / reconciliation and consequential adjustments, if any. The management does not expect any material difference affecting the current year's Financial Statements on such reconciliation / adjustments.

9 The financial statements for the year ended 31st March, 2011 had been prepared as per the then applicable, prerevised Schedule VI to the Companies Act, 1956. Consequent to the notification under the Companies Act, 1956, the financial statements for the year ended 31st March, 2012 are prepared under revised Schedule VI. Accordingly, the previous year figures have also been reclassified to confirm to this year's classification.


Mar 31, 2011

A. Nature of Operations

M/s Arihant Superstructures Limited (the Company), a public limited company, is engaged primarily in the business of Construction Contracts, Trading in Real Estate and Real Estate Development. The operations of the Company span all aspects of real estate development, from the identification and acquisition of land, planning, execution, construction and marketing of projects.

1) During the year the company has raised Rs. 14.99 crore by way of preferential issue of equity shares. Out of the said proceeds a sum of Rs. 12.78 crore has been utilized for the Projects of Company & its Subsidiaries and balance of Rs. 2.21 crores has been kept in Fixed Deposit.

2) During the year the Company has continued its two projects Arihant Abhilasha at Kharghar, Raigad and Arihant Arham at Panvel, Raigad. In addition the Company is under process of initiating three mega projects at Jodhpur namely Arihant - Adita, Arihant - Ayati and Arihant - Agreema.

3) Change in Accounting Policy:

Up to 31st March, 2010, the Company followed Percentage Completion Method of accounting wherein it added the estimated gross profit on direct costs based on the percentage of work completed to arrive at the value of Incomplete Projects (WIP) for the purpose of recognizing revenue for the year.

From the current year the company has changed its method of its revenue recognition for Incomplete Projects / under construction properties as per the Guidance Note on Revenue Recognition by the Real Estate Developers issued by The ICAI. Revenue for the current year onwards is recognized for the sold area only, where at least 15 percent of the sale consideration has been realized as per agreement, on the basis of percentage of actual cost incurred thereon as against total estimated cost of the project under execution subject to the actual cost exceeding 25 percent of the total estimated cost of the project. The Incomplete Projects (WIP) are valued at Cost. As a result of change in the revenue recognition policy of the Company during the current year the profit before tax is lower by Rs.22,309,686/-.

The company has not given a retrospective effect to the change in accounting policy, because such retrospective effect would have required the company to identify all incomplete projects that fulfilled the conditions specified in Guidance Note in the earlier reporting period and also to determine the stage of completion for all such projects in the earlier reporting period. The records required for such an exercise are not available. Hence results for the year ended 315t March, 2010 have not been restated to reflect change in revenue recognition policy. The effect of such change on the Financial Statements of subsequent financial years cannot be ascertained at present, as the same can be quantified only at the close of the respective years.

4) Related party disclosure:

iii) Key Management Personnel and Relatives of Key Management Personnel (KMP):

Sr. No Name of Party Nature of Relationship

1. Arihant Universal Realty Pvt. Ltd. Enterprises in which KMP have a significant influence

2. Mr. Ashok B Chhajer Chairman & Managing Director

3. Mrs. Sangeeta Chhajer Relative of Director

4. Mr. Nimish Shah Whole Time Director

5. Abhinandan Agrofarms Pvt. Ltd Enterprises in which KMP have a significant influence

6. Adinath Realty Pvt Ltd Enterprises in which KMP have a significant influence

7. Arihant Paradise Realty Pvt. Ltd. Enterprises in which KMP have a significant influence

8. Arihant Dream Houses Pvt. Ltd. Enterprises in which KMP have a significant influence

Notes:

a) The related party relationships have been determined on the basis of the requirements of the Accounting Standard (ASJ-18 Related Party Disclosures and the same have been relied upon by the auditors.

b) The relationships as mentioned above pertain to those related parties with whom transactions have taken place during the year except where control exists.

6) Segment information:

The Company operates in a single business and geographical segment i.e. "Construction and Allied Activities" within India. Accordingly, no separate disclosures for primary business and secondary geographical segment are required as per AS 17 issued by ICAI.

8) There was no impairment loss on the fixed assets on the basis of review carried out by the management in accordance with Accounting Standard (AS) -28lmpairment of Assets.

9) Directors Remuneration:

b) No commission is paid / payable to Directors / Managing Director and hence, computation of Net Profit in accordance with Section 198, 309 and 349 of the Companies Act, 1956 has not been given.

10) Contingent Liabilities

The levy of MVAT under the Maharashtra Value Added Tax Act on under construction flats / units sold is challenged by Maharashtra Chamber of Housing Industry (MCHI - an association of builders in which the company is a member) by a writ petition in Bombay High Court (being tax writ petition no. 2022 of 2007). In case, the said liability is finally confirmed, the amount is recoverable from the Flat Owner.

11) The Company has invested sum of Rs. 20,000,000/- in Birla Sun Life Fixed Term Plan whose NAV as on the reporting date i.e. 31.03.2011 is Rs. 20,058,800/-. As per the written Management Representation given to the Auditors the same is held for the purpose of long term investment and taking into account Accounting Principle of Prudence and as per Accounting Standard 13- Accounting for Investments same is valued at Cost Price.

12) Share Issue Expense and Preliminary Expenses are amortised over the period of 5 years.

13) As per the information given by the Management, there are no suppliers who are registered as micro, small or medium enterprises under "The Micro, Small and Medium Enterprises Development Act, 2006" as at March 31,2011.

14) In the opinion of the management, current assets, loans, advances and deposits are approximately of the value stated, if realised in the ordinary course of business. The provision of all known liabilities is adequate and not in excess of the amount reasonably necessary.

15) Balances of certain sundry debtors, sundry creditors, loans and advances are subject to confirmations / reconciliation and consequential adjustments, if any. The management does not expect any materia difference affecting the current years Financial Statements on such reconciliation / adjustments.

16) The Company has started projects Arihant Arham on 1st October 2009 and hence the figures of the previous years correspond to six months activity of construction only. Previous year figures have been regrouped or rearranged, wherever considered necessary, to confirm with the current year presentation.




Mar 31, 2010

A. Nature of Operations

M/s Arihant Superstructures Limited (the Company), a public limited company, is engaged primarily in the business of Construction and Real Estate Development. The operations of the Company span all aspects of real estate development, from the identifcation and acquisition of land, to planning, execution, construction and marketing of projects.

1) During the year the Company has came out with a Rights Issue of 14,691,000 Equity shares of Rs. 10/- each at par in the ratio of 59 Equity shares for every 1 share held on the Record Date i.e. 5th March, 2010. The issue opened on 8th March, 2010 and closed on 23rd March, 2010. The entire issue was fully subscribed and the shares were allotted on 25th March 2010. The Equity Shares were credited to the accounts of the shareholders in demat form in NSDL and CDSL on 30/03/2010 and 29/03/2010 respectively and were listed on the BSE on 29th March, 2010. The trading approval for the same was received from BSE on 31st March, 2010 w.e.f. 1st April, 2010.

2) During the year the company has initiated its two Projects namely "Arihant Abhilasha" at Kharghar, Raigad and "Arihant Arham" at Panvel, Raigad. Since both the projects are under the initial stage and percentage of work completed on Balance Sheet date is appx. 7.00% in case of "Arihant Abhilasha" and appx. 13.50% in case of "Arihant Arham". The Land cost related to the respective Projects is not amortised during the reporting period / year.

Notes:

a) The related party relationships have been determined on the basis of the requirements of the Accounting Standard (AS)-18 Related Party Disclosures and the same have been relied upon by the auditors.

b) The relationships as mentioned above pertain to those related parties with whom transactions have taken place during the year except where control exists.

3) Segment information:

The Company operates in a single business and geographical segment i.e. "Construction and Allied Activities" within India. Accordingly, no separate disclosures for primary business and secondary geographical segment are required as per AS 17 issued by ICAI.

4) There was no impairment loss on the fixed assets on the basis of review carried out by the management in accordance with Accounting Standard (AS) - 28 "Impairment of Assets".

(b) No commission is paid / payable to Directors / Managing Director and hence, computation of Net Proft in accordance with Section 198, 309 and 349 of the Companies Act, 1956 has not been given.

5) Contingent Liabilities not provided for:

There were no Contingent Liabilities as on 31.03.2010.

6) Utilisation of money raised by Right issue of the Company upto March 31, 2010

Sr. No Nature of Expenditure Amount Involved

1. Project Cost of Arihant Arham 146,910,000

7) Share Issue Expense (related to Rights Issue) and Preliminary Expenses are ammortised over the period of 5 years.

8) The Company has not received any intimation from its suppliers regarding their registration under the Micro, Small and Medium Enterprises Development Act, 2006 hence no disclosure has been made.

9) In the opinion of the management, current assets, loans, advances and deposits are approximately of the value stated, if realised in the ordinary course of business. The provision of all known liabilities is adequate and not in excess of the amount reasonably necessary.

10) Balances of certain sundry debtors, sundry creditors, loans and advances are subject to confrmations / reconciliation and consequential adjustments, if any. The management does not expect any material difference affecting the current years fnancial statements on such reconciliation / adjustments.

11) Previous year figures have been regrouped or rearranged, wherever considered necessary, to confrm with the current year presentation.

 
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