Mar 31, 2018
1) General information:
a) Atlanta Limited (referred to as "the Company") together with its subsidiaries is primarily engaged in the business of Infrastructure and development, Engineering, Procurement and Construction (EPC) contracts, Public, Private Partnership (PPP Model on Build Operate and Transfer (BOT) and Design, Build, Finance, Operate and Transfer (DBFOT) basis. Infrastructure Development activities include, inter-alia, Construction of Road, Highways, Bridges and Runways on Build Operate and Transfer (BOT) and Design, Build, Finance, Operate and Transfer (DBFOT) basis. The Company is also involved in Real Estate Development, Tourism infrastructure business and Mining of coal, lime stones etc.
The Company is a public limited company which is listed on two recognized stock exchanges in India and is incorporated and domiciled in India under the provisions of the Companies Act. The registered office of the Company is located at 101, Shree Amba Shanti Chambers, Andheri Kurla Road, Andheri - East, Mumbai - 400 059
b) Background to the Restated Ind AS Financial Statements
The Standalone Ind AS Audited Financial Statements for the year ended 31st March, 2018 were approved by the Board of Directors at their meeting held on July 28, 2018 (âOriginal Financial Statements.â) which were placed before the members in the Annual General Meeting held on 28th September, 2018 for their approval.
In the Original Financial Statements so prepared and placed before the members as aforesaid, the Auditorâs Report contained âEmphasis of Matterâ in relation to realization of certain receivables from PWD, Maharashtra.
In the said AGM, the members were of the view that the amount of Rs. 61,37,56,574/-shown as receivable from PWD, Maharashtra was unlikely to be realized. Hence, the members resolved that revenue from operations for the year be reduced by Rs. 21,75,28,271/- and an amount of Rs. 39,62,28,303/- be considered as not realizable and should be written-off as bad debt.
The Board of Directors were accordingly directed at the AGM to restate the said Original Financial Statements and to get the same audited by the Statutory Auditors.
The impact of restatement of financial statements has been disclosed in note 4.28.( i to vii)
These restated financial statements were authorized for issue by the Board of Directors on October 02, 2018.
2.2 Critical accounting estimates and judgments:
The preparation of the financial statements under Ind AS requires management to take decisions and make estimates and assumptions that may impact the value of revenues, costs, assets and liabilities and the related disclosures concerning the items involved as well as contingent assets and liabilities at the balance sheet date. Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
The Company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below:
(a) Classifications of Joint Arrangement as Jointly Controlled Operations
The Company based on rights and obligations that arises from the contractual arrangement entered into between the parties has classified certain Joint Arrangements entered into by the Company with parties to execute the construction contracts as Jointly Controlled Operations where the contractual agreement provides rights to assets and obligations for liabilities for those parties sharing joint control and the legal form does not confer separation between the investors and the special purpose vehicle i.e. partnership firms formed under the Indian Partnership Act, 1932 to execute the project.
(b) Revenue recognition
i. Revenue recognition on account of construction contracts and real estate development
The Company uses the âpercentage-of-completion methodâ to determine the appropriate amount to recognize in a given period. The stage of completion is measured by reference to the contract costs incurred up to the end of the reporting period as a percentage of total estimated costs for each contract. Costs incurred in the year in connection with future activity on a contract are excluded from contract costs in determining the stage of completion.
ii. Revenue recognition on account of arbitration/litigation claims
The Company has exercised judgment over recognition of revenue arising on account of claims made by the Company to the customer on account of several breaches committed by the customer during the period of contract, dispute over quantity and rates of materials used in execution of the project leading to dispute which has been settled vide arbitration process and the outcome of these awards including the timing and the amount of revenue recognition requires a reasonable degree of estimation.
(c) Expected Credit Loss
Company has a policy of regularly reviewing the recoverability of trade receivables. Substantial amount of trade receivables of the Company represents amount recoverable from the customers arising on account of arbitration claims pending against the Company. The expected credit loss allowance for trade receivables is made as per provision policy of the Company which takes into account the historical credit loss experience and adjusted for forward looking information.
3) Transition to Ind AS:
The Company has adopted Indian Accounting Standards (Ind AS) as notified by the Ministry of Corporate Affairs with effect from April 01, 2017, with a transition date of April 01, 2016. For all periods upto and including the year ended March 31, 2017, the Company prepared its financial statements in accordance with the previously applicable Indian GAAP (previous GAAP).
The adoption of Ind AS has been carried out in accordance with Ind AS 101, First-time Adoption of Indian Accounting Standards. Ind AS 101 requires that all Ind AS Standards and interpretations that are issued and effective for the first Ind AS financial statements be applied retrospectively and consistently for all financial years presented. Accordingly, the Company has prepared financial statements which comply with Ind AS for year ended March 31, 2018, together with the comparative information as at and for the year ended March 31, 2017. The Companyâs opening Ind AS Balance Sheet has been prepared as at April 01, 2016, the date of transition to Ind AS.
I. Exemptions and exceptions availed
In preparing these Ind AS financial statements, the Company has availed certain exemptions and exceptions in accordance with Ind AS 101, as explained below. The resulting difference between the carrying values of the assets and liabilities in the financial statements as at the transition date under Ind AS and previous GAAP have been recognized directly in equity (retained earnings or another appropriate category of equity). This note explains the adjustments made by the Company in restating its previous GAAP financial statements, including the Balance Sheet as at April 01, 2016 and the financial statements as at and for the year ended March 31, 2017.
(a) Ind AS optional exemptions
i. Deemed cost
Ind AS 101 permits a first time adopter to elect to continue with the carrying value for all of its property, plant and equipment as recognized in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition. This exemption can also be used for intangible assets and investment property covered by Ind AS 40 Investment Properties.
ii. Business combinations
Ind AS 101 provides an exemption for all transactions qualifying as business combinations, not to restate any business combinations under Ind AS103, occurring before the transition date. The Company has elected to apply this exemption and accordingly the Company has not restated business combinations occurring before April 01, 2016.
(b) Ind AS mandatory exceptions
The Company has applied the following exceptions from full retrospective application of Ind AS as mandatorily required under Ind AS 101:
i. 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 adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error.
Ind AS estimates as at April 01, 2015 are consistent with the estimates as at the same date made in conformity with previous GAAP. The Company made estimates for Impairment of financial assets based on expected credit loss model in accordance with Ind AS at the date of transition as these were not required under previous GAAP:
ii. Classification and measurement of financial assets
Ind AS 101 requires an entity to assess classification and measurement of financial assets (debt instruments) on the basis of the facts and circumstances that exist at the date of transition to Ind AS. Consequently, the Company has applied the above assessment based on facts and circumstances existing at the transition date.
II. Reconciliations between previous GAAP and Ind AS
Ind AS 101 requires an entity to reconcile equity, total comprehensive income and cash flows for prior periods. The regrouped previous GAAP information is derived based on the audited financial statements of the Company for year ended March 31, 2017.
The following tables represent the reconciliations from previous GAAP to Ind AS.
III. Notes to first-time adoption of Ind AS:
a. Rectification of errors identified under previous GAAP.
i. Interest on arbitration claims
The Company in the previous year ended March 31, 2017 had inadvertently accounted for interest on arbitration claim amounting to Rs. 1,58,71,122/- which has been rectified by restating the financial statements for the year ended March 31, 2017 in accordance with Ind AS 101. Consequent to above, the total equity as on March 31, 2017 and Profit for the year ended March 31, 2017 has decreased by Rs.1,03,81,300/-.
ii. Proposed Dividend
The Company in the previous year ended March 31, 2017 had inadvertently accounted for Proposed Dividend pertaining to year ended March 31, 2017 which was declared by the Board subsequent to report signing date of the financial statements which otherwise under the previous GAAP is required to be recognized in the year in which the Dividend is declared. The said error has been rectified by restating the financial statements for the year ended March 31, 2017 in accordance with Ind AS 101. Consequent to above, the total equity as on March 31, 2017 has increased by Rs.1,08,69,444/-.
b. Classification of Preference shares as compound financial instruments.
The Company has issued Redeemable Preference Shares. The Preference shares carry fixed rate of dividend which is non-discretionary. Ind AS 32 requires Classification of such kind of instruments into equity and liability component based on the terms of the contract. Interest on liability component is recognized using effective interest method. Under the previous GAAP, the preference shares were classified as equity and dividend payable thereon was considered treated as distribution of profit. Consequent to this change, the total equity as on March 31, 2017 Rs.12,50,00,000/- (April 01, 2016: ) has decreased by Rs.2,11,59,004/- due to classification of equity component of Preference shares in equity which has been partially off-set by notional interest cost of Rs.3,31,47,322/- recognized on preference shares using effective interest rate method and the profit for the year ended March 31, 2017 has been decreased by Rs.50,37,899/- on account of interest on preference shares recognized using effective interest rate method.
c. Borrowings - Transaction cost adjustment
Ind AS 109 requires transaction costs incurred towards origination of borrowings to be deducted from the carrying amount of borrowings on initial recognition. These costs are recognized in the profit or loss over the tenure of the borrowing as part of the interest expense by applying the effective interest rate method. Consequently, the total equity as at March 31, 2017 is increased by Rs.89,57,020/- (April 01, 2016 - Rs.1,16,96,666/- and profit for the year ended March 31, 2017 is decreased by Rs.27,39,646/-
d. Deemed cost - Property, Plant and Equipments (PPE)
Under the previous GAAP, property, plant and equipment, were carried at cost. Under Ind AS, the Company has opted the policy to carry such property, plant and equipment at deemed cost on the date of transition. Accordingly, the revaluation reserve recognized under the previous GAAP has been reversed and transferred to retained earnings and on account of the aforesaid adjustments, the additional depreciation charged of Rs.Nil on account of revaluation under previous GAAP has been reversed during the year 2016-17 leading to increase in profit for the year ended March 31, 2017 by (Nil).
e. Security Deposits
Under Ind AS, all financial assets are required to be recognized at fair value. Accordingly, the Company has fair valued the security deposits under Ind AS. Under the previous GAAP, interest free security deposits (that are refundable in cash on completion of cash term) were recorded at their transaction value. Difference between the fair value and transaction value of security deposit has been recognized as prepaid rent. Consequent to this change, the profit for the year and the total equity as at March 31, 2017 decreased by Rs.3,17,25,179/- (April 01, 2016: Rs.3,86,84,854/- due to amortisation of prepaid rent which has been partially off-set by notional interest income of Rs.19,34,309/- in (April 01, 2016: Rs.4,57,808/-) recognised on security deposits.
f. Financial guarantee obligations
Under Ind AS, financial guarantees are accounted as financial liabilities and measured initially at fair value. Accordingly, the Company has created financial guarantee obligations of Rs.25,19,54,304/- as on April 01, 2016. On account of the aforesaid adjustment, the Company has recognised Other Income of Rs.3,73,71,728/- in the Statement of Profit and Loss for the year ended March 31, 2017
g. Fair valuation of investment
Under Ind AS, investment in equity instruments of others carried at FVTPL, Investment measured initially at fair value. Accordingly, the Company has transferred Rs.10,39,535/- to retained earnings as on April 01, 2016.
h. Tax adjustments on above GAAP adjustments
The Company in the previous year ended March 31, 2017 had not accounted for MAT credit pertaining to year ended March 31, 2017. The said error has been rectified by restating the financial statements for the year ended March 31, 2017 in accordance with Ind AS 101. Consequent to above, the total equity as on March 31, 2017 has increased by Rs.23,43,92,574/-.
i. Remeasurements of post-employment benefit obligations
Under Ind AS, remeasurements i.e. actuarial gains and losses and the return on plan assets, excluding amounts included in the net interest expense on the net defined benefit liability are recognised in Other Comprehensive Income instead of profit or loss. Under the previous GAAP, these remeasurements were forming part of the profit or loss for the year. As a result of this change, the profit for the year ended March 31, 2017 increased by Rs.12,52,048/-. There is no impact on the total Equity as at March 31, 2017.
j. Other Comprehensive Income
Under Ind AS, all items of income and expense recognised in a period should be included in profit or loss for the period, unless a standard requires or permits otherwise. Items of income and expense that are not recognised in profit or loss but are shown in the Statement of Profit and Loss as âOther Comprehensive Incomeâ includes remeasurements of post-employment benefit obligation and fair valuation of investments in subsidiaries.
k. Retained earnings
Retained earnings as at April 01, 2016 has been adjusted consequent to the above Ind AS transition adjustments.
4. Rights, preference and restriction attached to equity shares
The Company has only one class of equity shares having par value of Rs.2/- per share. Each holder of the equity share is entitled to one vote per share. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive the remaining assets of the Company, after distribution of all preferential amounts.
Nature and purpose of reserves Securities premium account
Securities premium account is created to record premium received on issue of shares. The reserve is utilized in accordance with the provision of the Companies Act, 2013.
5. Impact of Restatement referred to note 1(b)
With reference to note 1(b) of the financial statement, the impact of the restatement of the original financial statement is given below:
i) Revenue from Operations for the year have been decreased from Rs.145,73,60,042/- to Rs.123,98,31,771/- in the restated financial statement (Refer note 4.21)
ii) Revenue recognized in earlier years and considered receivable aggregating Rs.39,62,28,303/- have been considered as Bad Debts and included under the head âOther Expensesâ. (Refer note.4.26)
iii) Loss before Tax for the year is at Rs.38,78,83,409/- as against profit before tax reported at Rs.22,58,73,165/- in the original financial statement.
iv) Loss after Tax for the year is at Rs.26,34,63,393/- as against profit after tax reported at Rs.15,82,97,629/-in the original financial statement.
v) Trade receivable (non current) for the year are at Rs.43,34,21,941/- as against Rs.134,80,17,263/- reported in the original financial statement. (Refer note.4.3(b)
vi) Trade receivable (current) for the year are at Rs.110,30,76,824/- as against Rs.80,22,38,076/- reported in the original financial statement. (Refer note 4.7(a)
vii) Reserve and surplus for the year are at Rs.452,39,28,104/- as against Rs.494,56,89,126/- reported in the original financial statement. (Refer note.4.11)
6) Contingent liabilities and commitments
(a) Bank Guarantees and Letter of Credit issued by Banks aggregating to Rs.119,59,30,538/- (March 31, 2017 Rs.150,01,45,000/-)
(b) Corporate Guarantees issued by Company on behalf of its subsidiaries Rs.389,91,00,000/-(March 31, 2017 Rs.250,00,00,000/-)
(c) In respect of subsidiaries, the Company has committed/ guaranteed to extend financial support in the form of equity or debt as per the agreed means of finance, in respect of the projects being undertaken by the respective subsidiaries, including any capital expenditure for regulatory compliance and to meet shortfall in the expected revenues/debt servicing.
Future cash flows in respect of the above matters can only be determined based on the future outcome of various uncertain factors.
(d) Estimated amount of contracts remaining unexecuted on capital account (net of advances paid) and not provided for Rs.Nil (March 31, 2018 Rs.Nil; March 31, 2017 Rs.Nil).
(e) Disputed Income Tax Liability of Rs.12,40,94,156/- (March 31, 2017 Rs.14,07,23,017/-)
(f) Disputed Service Tax Liability of Rs.2,83,25,388/- (March 31, 2017 Rs. Nil)
(g) Disputed Sales Tax & Value Added Tax Liability of Rs.4,92,91,421/- (March 31, 2017 Rs. Nil)
(h) In respect of (e) (f) and (g) above it is not practicable for the Company to estimate the closer of this issues and the consequential timing of cash flows, if any.
7) Project status of Subsidiaries
(i) Atlanta Infra Assets Limited Project undertaken by SPV
Improvement, Operation and Maintenance including strengthening and widening of existing 2 lane road to 4 lane dual carriageway from Km.9.200 to Km.50.000 of NH-6 (Nagpur-Kondhali Section) in the State of Maharashtra on Build, Operate and Transfer (BOT) Basisâ
The said project was completed on 22-09-2011 and received Commercial Operation Certificate from the Competent Authority and collection of toll from the users of the facility is in progress.
(ii) MORA Tollways Limited Project undertaken by SPV
Four Laning of Mohania - Ara Section of NH-30 (Km.0.000 to Km.116.760) in the state of Bihar on Design, Build, Finance, Operate and Transfer (DBFOT) basis vide concession agreement entered on 10th September, 2011.
The SPV has terminated the Concession Agreement dated 10-09-2011 for the Authority defaults on 20-02-2015 for the work of âFour Laning of the Mohania-Ara Section of NH-30 (From Km.0.000 to Km. 116.760) in the State of Bihar on Design, Build, Finance, Operate, Transfer (DBFOT-Toll) basis." The Company has claimed termination payment amounting to Rs.610,53,00,000/- plus interest of contractual rate from Bihar State Road Development Corporation Limited pursuant to Article 37 of the Concession Agreement.
Pursuant to the Supreme Court order dated 27.01.2017, the Claimant preferred a Claim of Termination Payment before the Honâble Arbitral Tribunal. As per minutes of meeting dated 30.03.2018 and 31.03.2018, the Proceedings before the Arbitral Tribunal are concluded by both the parties and the matter is posted for preparation of Award. The Award in the aforesaid Arbitral Proceeding will be published shortly.
(iii) Atlanta Ropar Tollways Private Limited Project undertaken by SPV
Development and Operation and Maintenance of Ropar - Chamkur - Sahib - Neelon - Doraha (upto NH 1) Road on Design, Build, Finance, Operate and Transfer (DBFOT) basis in the State of Punjab,vide concession agreement entered on 05th October, 2011.
The said SPV has completed the said project and received Commercial Operation Certificate from the competent Authority on 08-11-2016 and collection of toll from the users of the facility is in progress.
8) Employee benefit obligations
The Company has classified various employee benefits as under:
a) Leave obligations
The leave obligations cover the Company liability for sick and privileged leave.
b) Defined contribution plans
i. Provident fund
ii. State defined contribution plans
- Employeesâ Pension Scheme, 1995
The provident fund and the state defined contribution plan are operated by the regional provident fund commissioner. Under the schemes, the Company is required to contribute a specified percentage of payroll cost to the retirement benefit schemes to fund the benefits.
c) Post employment obligation Gratuity
The Company has a defined benefit plan, governed by the Payment of Gratuity Act, 1972. The plan entitles an employee, who has rendered at least five years of continuous service, to gratuity at the rate of fifteen days basic salary for every completed years of services or part thereof in excess of six months, based on the rate of basic salary last drawn by the employee concerned.
The above sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. While calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the defined benefit liability recognised in the balance sheet. The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the prior period.
A) Long term borrowings and working capital limit
(i) Primary Security:
Hypothecation of entire current assets in the form of Stock and Receivables the Company present & future on first pari-passu basis with the other Lenders in Working capital arrangement.
(ii) Collateral Security:
Second Charge on pari passu basis with for Working Capital and Term Loan limits, on Companyâs fixed assets by way of mortgage at:
a) Registered mortgage on pari passu basis with consortium Office No. 201, 2nd Floor Andheri Kurla Road, Opposite Hotel Leela, Marol, Andheri (E) Mumbai- 400 059 owned by promoter and promoter group.
b) Registered mortgage on pari passu basis with consortium Office No. 101, 1st Floor Andheri Kurla Road, Opposite Hotel Leela, Marol, Andheri (E) Mumbai- 400 059 owned by promoter and promoter group.
c) Registered mortgage on pari passu basis with consortium Office No. 301, 3rd Floor Andheri Kurla Road, Opposite Hotel Leela, Marol, Andheri (E) Mumbai- 400 059.
d) Residential Building named Atlanta House on Plot No. :20, Sector No.10, Gate No. 3 Dwarka, Shahpur Jat, New Delhi-110 075 Total Area of plot: 325.54 Sq. Meters.
e) Pledge of 4,10,32,116 shares of the Company held by promoter and promoter group
f) Hypothecation charge on pari-passu basis on entire unencumbed Moveable assets other than those specifically charged to the equipment financiers.
g) Unit No.: 801, 8th Floor, Shrikant Chambers Phase-II, Survey No.78/1 & 79 (pt), CTS no. 669 A/1, 669 A/2, 669 A/3, 669 A/4 to 6783 (pt) Station Road V. N. Purav Marg, Near R K Studio, Chembur, Mumbai, Maharashtra Area of plot: 7477.75 sq mtr owned by promoter and promoter group.
h) Unit No.:701, 7th Floor, Shrikant Chambers Phase-II, Survey No.78/1 & 79 (pt), CTS no. 669 A/1, 669 A/2, 669 A/3, 669 A/4 to 6783 (pt) Station Road V. N. Purav Marg, Near R K Studio, Chembur, Mumbai, Maharashtra Area of plot: 7477.75 sq mtr owned by promoter and promoter group.
i) Commercial Land with Survey No.:155,166/1, 166/2, 174-177, Tahsil Chincholi, Hingana, District, Nagpur-440 016.
j) Plot No.197, Rose Meadows, Village Sogaon, Post-Sogaon,Tal-Shahpur, Dist. Thane- 421 403.
(a) Fair value hierarchy
This section explains the judgments and estimates made in determining the fair values of the financial instruments that are (a) recognised and measured at fair value and (b) measured at amortised cost and for which fair values are disclosed in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial instruments into the three levels prescribed under the accounting standard. An explanation of each level follows underneath the table.
(b) Valuation processes
The Company obtains assistance of independent and competent third party valuation experts to perform the valuations of financial assets and liabilities required for financial reporting purposes, including level 3 fair values. Discussions of valuation processes and results are held between the Company and the valuer on periodically basis.
(c) Valuation technique used to determine fair values
The main level 3 inputs used by the Company are derived and evaluated as follows:
The fair value of financial instruments is determined using discounted cash flow analysis.
The carrying amount of current financial assets and liabilities are considered to be the same as their fair values, due to their short term nature.
The fair value of the long-term Borrowings with floating-rate of interest is not impacted due to interest rate changes, and will not be significantly different from their carrying amounts as there is no significant change in the under-lying credit risk of the Company borrowing (since the date of inception of the loans). Further, the Company has no long-term Borrowings with fixed rate of interest.
For financial assets and liabilities that are measures at fair value, the carrying amount is equal to the fair values.
Note:
Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices.
Level 2: The fair value of financial instruments that are not traded in an active market (for example over-the-counter derivatives) is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.
Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities which are included in level 3.
There are no transfers between any levels during the year.
The Companyâs policy is to recognise transfer into and transfer out of fair value hierarchy levels as at the end of the reporting period.
(a) Credit risk
The Company is exposed to credit risk, which is the risk that counterparty will default on its contractual obligation resulting in a financial loss to the Company.
Credit risk arises from cash and cash equivalents, financial assets carried at amortised cost and deposits with banks and financial institutions, as well as credit exposures to trade customers including outstanding receivables.
Credit risk management
Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss.
The Companyâs credit risk arises from accounts receivable balances. Major customers of the Companies include public sector enterprises and state owned companies having high credit quality. Accordingly, the Companyâs customer credit risk is very low. With respect to inter corporate deposits/ loans given to subsidiaries, the Company will be able to control the cash flows of those subsidiaries as the subsidiaries are wholly owned by the Company.
For banks and financial institutions, only highly rated banks/institutions are accepted. Generally all policies surrounding credit risk have been managed at company level.
(b) Liquidity risk
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due and to close out market positions. Due to the dynamic nature of the underlying businesses, Company treasury maintains flexibility in funding by maintaining availability under committed credit lines.
In respect of its existing operations, the Company funds its activities primarily through long-term loans secured against each SPVâs and long terms loans and advances. In addition, each of the Special Purpose Vehicle (SPVâs) has working capital loans available to it which are renewable annually, together with certain intra-group loans.
Management monitors rolling forecasts of the Companyâs liquidity position and cash and cash equivalents on the basis of expected cash flows. This is generally carried out at local level in the operating subsidiaries of the Company in accordance with practice and limits set by the Company. These limits vary by location to take into account the liquidity of the market in which the entity operates. In addition, the Companyâs liquidity management policy involves projecting cash flows in major currencies and considering the level of liquid assets necessary to meet these monitoring balance sheet liquidity ratios against internal and external regulatory requirements and maintaining debt financing plans.
(i) Maturities of financial liabilities
The amounts disclosed below are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as the impact of discounting is not significant.
(c) Market risk
Market risk is the risk that the fair values of future cash flows of a financial instrument will fluctuate because of volatility of prices in the financial markets. Market risk can be further segregated as: a) Foreign currency risk and b) Interest rate risk.
(i) Foreign currency risk
Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. Company does not have any foreign currency loans, receivables or payables, hence the risk towards foreign currency risk is not applicable to the Company.
For that reason, sensitivity analysis with respect to foreign currency risk has not been disclosed
(ii) Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates.The Companyâs main interest rate risk arises from long-term borrowings with variable rates, which expose the Company to cash flow interest rate risk. During March 31, 2018, March 31, 2017 and April 01, 2016 the Companyâs borrowings at variable rate were mainly denominated in Rupees.
The Companyâs fixed rate borrowings are carried at amortised cost. They are therefore not subject to interest rate risk as defined in Ind AS-107, since neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rates.
9) Capital Management (a) Risk Management
The Companyâs objectives when managing capital are to safeguard the Companyâs ability to continue as a going concern in order to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost of capital. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.
The Company monitors capital on basis of total equity and debt on a periodic basis. Equity comprises all components of equity. Debt includes term loan and short term loans. The following table summarizes the capital of the Company:
10) Segment reporting
The Companyâs Committee of the Chairman and the Managing Director examine the Companyâs performance.
Presently, the Company is engaged in only one segment viz ''Construction activity'' and as such there is no separate reportable segment as per Ind AS 108 ''Operating Segments''. Presently, the Company''s operations are predominantly confined in India.
11) Disclosure in respect of ongoing construction contracts
On the balance sheet date, the Company reports the net contract position for each contract as either an asset or an liability. A contract represents an asset where costs incurred plus recognized profits (less recognized losses) exceed progress billings; a contract represents liability where opposite is the case.
12) Corporate Social Responsibility (CSR)
As per the Section 135 of the Companies Act, 2013, the Company has not spent any amount during the year and preceding financial years, towards CSR activity.
13) Disclosure under Micro, Small and Medium Enterprises Development Act, 2006
Disclosure of amounts payable to vendors as defined under the "Micro, Small and Medium Enterprise Development Act, 2006" is based on the information available with the Company regarding the status of registration of such vendors under the said Act. There are no overdue principal amounts / interest payable amounts for delayed payments to such vendors at the Balance Sheet date. There are no delays in payment made to such suppliers during the year or for any earlier years and accordingly, there is no interest paid or outstanding interest in this regard in respect of payments made during the year or brought forward from previous years.
14) The Company has regrouped/reclassified the previous year figures wherever necessary to conform the current year presentation.
Mar 31, 2017
1.1 Equity shares
The Company has one class of equity share having a face value of Rs.2/- each. Each shareholder is eligible for one vote per share held. In the event of liquidation of the company, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.
Preference shares
1.2 a) 25% Cumulative Redeemable Non-Convertible Preference Shares of face value of Rs.10/-each were issued at a premium of Rs.40/ each as under:-
i) 10,00,000 shares were issued on March 28, 2005
ii) 15,00,000 shares were issued on November 28, 2005 Total 25,00,000 shares
b) These shares are redeemable after 15 years or at any time at the sole discretion of the Company at Rs.50/- per share
c) The said preference shares have a lock-in-period of 15 years
d) Preference Share holders have right to vote if and only if any, under following situation:-
i) No dividend is paid for two years successively, or
ii) No dividend is paid for a period of three years out of a block of six years
1.3 The Company has not granted any options to its employees under employees stock options scheme (ESOP) since inception.
1.4 There are no unpaid calls due from directors and officers of the Company.
2.1 General Reserve has been created in terms of Companies (Transfer of Profits to Reserves) Rules, 1975 and is bound by the Rules in connection therewith.
2.2 The Board of Directors at their meeting held on 15th May,2017 have recommended a dividend of 15% i.e Rs.0.30 paise per equity shares ofRs.2/- each belonging to non promoters, subject to approval of shareholders in the ensuing Annual General Meeting.
3.1 Long Term Borrowings Secured by:
Hypothecation of entire chargeable current assets of the Company present & future on first pari-passu basis with the other lenders in working capital arrangement. Registered mortgage on pari-passu basis with consortium banks of 2nd and 3rd floor of office premises having total built-up area of 3315 sq.ft. each at Shree Amba Shanti Chambers,Survey No.143, Hissa No,6(part),9(part),No and 13(part), Andheri-Kurla Road, Mumbai-400 059 owned by Shri Rajhoo Bbarot and the Company.
Loan from Life Insurance Corporation of India Ltd is secured against the surrender value of key man insurance policies of the Directors assigned in favor of Company
Loan against pledge of shares are secured by pledge of promoter/promoter groupâs equity shares of Atlanta Ltd for due payment of loan together with all interest ,liquidated damages,costs,charges and other money payable under the loan agreements.
4.1 In respect of the deferred tax liability arising on account of timing difference for the current financial year, a sum of Rs.44,65,128/- has been accounted as deferred tax asset.
5.1 The Company, following the principle of prudence, conservatism and matching principle of cost and revenue in an EPC contract for Engineering, Designing, Procuring and Construction of road projects at Nagpur, Ropar and Patna, provides for expenditure on such contract so that profit from the contract is accrued proportionately in relation to the physical progress of the work throughout the contract. In view thereof, long term provision includes year end closing provision of Rs.131,930,941/- (previous year Rs.258,094,620/-).
6.1 Secured Working Capital Borrowing from Banks is secured by all encumbered, movable assets other than those specifically charged, office premises ofthe Company along with furniture and fixture and hypothecation of stocks of raw materials, stores, spares and book-debts, both present & future and also guaranteed by the Directors.
7.1 In absence of incomplete information from the vendors with regards to their registration (filling of Memorandum) under The Micro, Small and Medium Enterprises Development Act, 2006. (27 of 2006 ), the Company is unable to compile the full information required to be disclosed herein under section 22 of the said Act.
8.1 * Others payable includes statutory Liabilities on account of TDS and others of ^20,930,836/- (previous year Rs.13,192,948/-)
8.2 ** Investor Education & Protection Fund shall be credited for unclaimed dividends amount when due.
9.1 âTrade receivable includes an amount of Rs.1,533,570,649/- receivable from PWD Maharashtra against Arbitral Tribunal award, the said award was challenged by the PWD Maharashtra before Bombay High Court and final outcome is pending.
10.1 Expenditure on EPC contracts
The Company, following the principle of prudence, conservatism and matching principle of cost and revenue in an EPC contract for Engineering, Designing, Procuring and Construction of road project at Mohania-Ara (Bihar), Ropar (Punjab) and Nagpur(Maharashtra) provides for expenditure on such contract so that profit from the contract is accrued proportionately in relation to the physical progress of the work throughout the contract. In view thereof, in this account an amount of â(12,61,63,679) (net of previous yearâs provision of Rs.11,11,24,144) has been adjusted in the Operating expenses.
10.2 No provision has been made in respect of Leave Encashment, as the employees of the Company are required to utilize their entitlement of earned leave before the end of the financial year.
11 In the opinion of the management, the current assets, loans and advances and current liabilities are approximately stated if realized in the ordinary course of business. The balances of debtors, creditors and loans & advances are subject to confirmation and reconciliation, if any. The provisions for all other liabilities are adequate and not in excess of the amount reasonably necessary.
12 Segment information
The Company is engaged in the business of contracting activities i.e. construction and development of infrastructure. The entire operations are governed by the same set of risk and rewards and therefore the same has been considered as representing single primary business segment. The Company operates within a single geographical segment i.e. India. In view of this, the disclosure requirements of Accounting Standards (AS-17) âSegment Reportingâ issued by the Institute of Chartered Accountants of India are not applicable.
13 Impairment of assets
There was no impairment Loss on fixed assets on the basis of review carried out by the Management in accordance with the Accounting Standards - (AS-28) âImpairment of Assetsâ issued by the Institute of Chartered Accountants of India.
14 Disclosures of related parties transactions
As per the Accounting Standards (AS-18) âRelated Party Disclosureâ issued by the Institute of Chartered Accountants of India, the disclosure of transactions with related parties as defined in the Accounting Standard for the period ended 31st March-2017 is given below:
A List of related parties
i Key Management Personnel and their relatives:
Rajhoo Bbarot - Chairman
Rikiin R. Bbarot- Managing Director
Bhavana R. Bbarot
Pooja R. Bbarot
Ridhima M. Doshi
Rajhoo A. Bbarot -HUF
Ambalal P. Bbarot - HUF
ii Partnership firms and joint ventures:
ABT Developers
Atlanta Thakural Constructions Shreenath Builders AAP Constructions Atlanta-ARSS Joint Venture
ARSS-Atlanta Joint Venture
iii Subsidiaries:
Atlanta Coalmines Private Limited Atlanta Energy Private Limited Atlanta Hotels Private Limited Atlanta Recycling Company Private Limited Atlanta Tourism Ventures Limited Atlanta Infra Assets Limited Atlanta Ropar Tollways Private Limited MORA Tollways Limited
iv Associate Companies:
Lucknow Varanasi Tollways Private Limited
v Enterprises over which key management personnel is able to exercise significant influence:
Atul Raj Builders Private Limited
Vaikuntam Realty Private Limited Shrikant Studios Private Limited
(As identified and certified by the Management and relied upon by the auditors, for details of transactions (excluding reimbursement) entered into with the related parties refer Annexure - 1)
15 In the opinion of the Board, except otherwise stated all assets other than fixed assets and non current investments, have a realisable value in the ordinary course of business which is not different from the amount at which it is stated. The provision for current liabilities and other liabilities is adequate and not in excess of amount reasonably necessary.
16 The Company has regrouped/reclassified the previous year figures whereever necessary to conform the current year presentation.
Mar 31, 2016
1 Equity shares
The Company has one class of equity share having a face value of Rs, 2/- each. Each shareholder is eligible for one vote per share held. In the event of liquidation of the Company, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.
Preference shares
2 a) 25% Cumulative Redeemable Non-Convertible Preference Shares of face value ofRs, 10/-each were issued at a premium ofRs, 40/ each as under:-
i) 10,00,000 shares were issued on March 28, 2005
ii) 15,00,000 shares were issued on November 28, 2005 Total 25,00,000 shares
b) These shares are redeemable after 15 years or at any time at the sole discretion of the Company at Rs, 50/- per share
c) The said preference shares have a lock-in-period of 15 years
d) Preference Share holders have right to vote if and only if any, under following situation:-
i) No dividend is paid for two years successively , or
ii) No dividend is paid for a period of three years out of a block of six years
3. General Reserve has been created in terms of Companies (Transfer of Profits to Reserves) Rules, 1975 and is bound by the Rules in connection therewith.
4 In the 32nd Annual General Meeting of the Company held on September 28, 2015, the Shareholders did not approve the dividend proposed by Board of Directors for the financial year 2014-15 amounting to Rs, 2,44,50,000/-. Hence, in the accounts for the year under review, the proposed dividend and dividend distribution tax there on aggregating to Rs, 2,94,56,057/- has been reversed.
5 Long Term Borrowings Secured by:
Term Loan from Allahabad Bank is secured by exclusive first charge by way of assignment of all the rights, title, interest and benefits whatsoever of the Company relating to Mumbai By-pass BOT-Project and securitization of entire toll receivable of Mumbai By-Pass through Escrow mechanism.
Loan from Life Insurance Corporation of India Ltd is secured against the surrender value of key man insurance policies of the Directors assigned in favor of Company.
Loan against pledge of shares are secured by pledge of promoter/promoter group''s equity shares of Atlanta Ltd. for due payment of loan together with all interest, liquidated damages, costs, charges and other money payable under the loan agreements.
6 In respect of the deferred tax liability arising on account of timing difference for the current financial year, a sum of Rs, 5,531,337/- has been accounted as deferred tax asset.
7. The Company, following the principle of prudence, conservatism and matching principle of cost and revenue in an EPC contract for Engineering, Designing, Procuring and Construction of road projects at Nagpur, Ropers and Patna, provides for expenditure on such contract so that profit from the contract is accrued proportionately in relation to the physical progress of the work throughout the contract. In view thereof, long term provision includes yearend closing provision of Rs, 25,80,94,620/- (previous year Rs, 220,05,03,513/-).
Details of dues to Micro, Small and Medium Enterprises as defined under the MSMED Act, 2006
8 In absence of incomplete information from the vendors with regards to their registration (filling of Memorandum) under The Micro, Small and Medium Enterprises Development Act, 2006. (27 of 2006), the Company is unable to compile the full information required to be disclosed herein under section 22 of the said Act.
9 ** Investor Education & Protection Fund shall be credited for unclaimed dividends amount when due.
10. Amortization of BOT Rights is provided in accordance with F.No.17/60/2012 CL -V dated March 31, 2014 issued by the Ministry of Corporate Affairs for fixing the amortization rates for non-current assets being BOT Tolling Assets. The Company has computed amortization in accordance with the new Schedule II order.
11. Amortization of BOT Rights is provided in accordance with F.No.17/60/2012 CL -V dated March 31, 2014 issued by the Ministry of Corporate Affairs for fixing the amortization rates for non-current assets being BOT Tolling Assets. The Company has computed amortization in accordance with the new Schedule II order.
12. (*) Income tax assessment have been completed up to assessment year 2013-14 (31-03-2013)
13. Amortization of BOT Rights is provided in accordance with F.No.17/60/2012 CL -V dated March 31, 2014 issued by the Ministry of Corporate Affairs for fixing the amortization rates for non-current assets being BOT Tolling Assets. The Company has computed amortization in accordance with the new Schedule II order.
14. Expenditure on EPC contracts
The Company, following the principle of prudence, conservatism and matching principle of cost and revenue in an EPC contract for Engineering, Designing, Procuring and Construction of road project at Mohania-Ara (Bihar), Ropar (Punjab) and Nagpur(Maharashtra) provides for expenditure on such contract so that profit from the contract is accrued proportionately in relation to the physical progress of the work throughout the contract. In view thereof, in this account an amount ofRs, 11,11,24,144/-) (net of previous year''s provision of '' 220,05,03,513/-) has been adjusted in the Operating expenses.
15. As per Accounting Standards (AS-15) Revised "Employee Benefit", the disclosures as defined in the Accounting Standards are given below:
Defined contribution plans
Contribution to defined contribution plans, recognized as expenses for the year are as under:
The estimates of rate of escalation in salary considered in actuarial valuation, take in to account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is certified by the actuary.
16. No provision has been made in respect of Leave Encashment, as the employees of the Company are required to utilize their entitlement of earned leave before the end of the financial year.
17. In the opinion of the management, the current assets, loans and advances and current liabilities are approximately stated if realized in the ordinary course of business. The balances of debtors, creditors and loans & advances are subject to confirmation and reconciliation, if any. The provisions for all other liabilities are adequate and not in excess of the amount reasonably necessary.
18. Segment information
The Company is engaged in the business of contracting activities i.e. construction and development of infrastructure. The entire operations are governed by the same set of risk and rewards and therefore the same has been considered as representing single primary business segment. The Company operates within a single geographical segment i.e. India. In view of this, the disclosure requirements of Accounting Standards (AS-17) âSegment Reportingâ issued by the Institute of Chartered Accountants of India are not applicable.
19. Impairment of assets
There was no impairment Loss on fixed assets on the basis of review carried out by the Management in accordance with the Accounting Standards - (AS-28) âImpairment of Assetsâ issued by the Institute of Chartered Accountants of India.
20 Disclosures of related parties transactions
As per the Accounting Standards (AS-18) âRelated Party Disclosureâ issued by the Institute of Chartered Accountants of India, the disclosure of transactions with related parties as defined in the Accounting Standards for the period ended March 31, 2016 is given below:
A List of related parties
i Key Management Personnel and their relatives:
Rajhoo Bbarot - Chairman
Rikiin R. Bbarot- Managing Director
Bhavana R. Bbarot
Pooja R. Bbarot
Ridhima M. Doshi
Rajhoo A. Bbarot -HUF
Ambalal P. Barot-HUF
ii Partnership firms and joint ventures:
ABT Developers
Atlanta Thakural Constructions Shreenath Builders AAP Constructions Atlanta-ARSS Joint Venture ARSS-Atlanta Joint Venture
iii Subsidiaries:
Atlanta Coalmines Private Limited Atlanta Energy Private Limited Atlanta Hotels Private Limited Atlanta Recycling Company Private Limited Atlanta Tourism Ventures Limited Atlanta Infra Assets Limited Atlanta Ropers Toll ways Private Limited MORA Toll ways Limited
iv Associate Companies:
Luck now Varanasi Toll ways Private Limited
v Enterprises over which key management personnel is able to exercise significant influence:
Atul Raj Builders Private Limited
Vaikuntam Realty Private Limited Shrikant Studios Private Limited
(As identified and certified by the Management and relied upon by the auditors, for details of transactions (excluding reimbursement) entered into with the related parties refer Annexure - 1)
41 In the opinion of the Board, except otherwise stated all assets other than fixed assets and noncurrent investments, have a realizable value in the ordinary course of business which is not different from the amount at which it is stated. The provision for current liabilities and other liabilities is adequate and not in excess of amount reasonably necessary.
42 The Company has regrouped/reclassified the previous year figures wherever necessary to conform the current year presentation.
Mar 31, 2015
1. *Amortization of BOT Rights is provided in accordance with
F.No.17/60/2012 CL -V dated March 31,2014 issued by the Ministry of
Corporate Affairs for fixing the amortization rates for non-current
assets being BOT Tolling Assets. The Company has computed amortization
in accordance with the new Schedule II order.
2. Expenditure on EPC contracts
The Company, following the principle of prudence, conservatism and
matching principle of cost and revenue in an EPC contract for
Engineering, Designing, Procuring and Construction of road project at
Mohania-Ara (Bihar), Ropar (Punjab) and Nagpur(Maharashtra) provides
for expenditure on such contract so that profit from the contract is
accrued proportionately in relation to the physical progress of the
work throughout the contract. In view thereof, in this account an
amount of Rs. 40,55,11,473 (net of previous year's provision of Rs.
1,79,49,92,040) has been adjusted in the Operating expenses.
3. PRIOR PERIOD ADJUSTMENTS
There are no prior period adjustments.
4. In the opinion of the management, the current assets, loans and
advances and current liabilities are approximately stated if realized
in the ordinary course of business. The balances of debtors, creditors
and loans & advances are subject to confirmation and reconciliation.
if any. The provisions for all other liabilities are adequate and not
in excess of the amount reasonably necessary.
5. Segment information
The Company is engaged in the business of contracting activities i.e.
construction and development of infrastructure. The entire operations
are governed by the same set of risk and rewards and therefore the same
has been considered as representing single primary business segment.
The Company operates within a single geographical segment i.e. India.
In view of this, the disclosure requirements of Accounting Standards
(AS-17) "Segment Reporting" issued by the Institute of Chartered
Accountants of India are not applicable.
6. Impairment of assets
There was no impairment Loss on fixed assets on the basis of review
carried out by the Management in accordance with the Accounting
Standards - (AS-28) "Impairment of Assets" issued by the Institute of
Chartered Accountants of India.
7. Disclosures of related parties transactions
As per the Accounting Standards (AS-18) "Related Party Disclosure"
issued by the Institute of Chartered Accountants of India, the
disclosure of transactions with related parties as defined in the
Accounting Standards for the period ended March 31, 2015 is given
below:
A List of related parties
i Key Management Personnel and their relatives:
Rajhoo Bbarot - Chairman & Managing Director
Rikiin R. Bbarot - Joint Managing Director
Bhavana R. Bbarot
Pooja R. Bbarot
Ridhima M. Doshi
Rajhoo A. Bbarot - HUF
Ambalal P. Barot - HUF
ii Partnership firms and joint ventures:
ABT Developers
Atlanta Thakural Constructions
Shreenath Builders
AAP Constructions
Atlanta-ARSS Joint Venture
ARSS-Atlanta Joint Venture
iii Subsidiaries:
Atlanta Coalmines Private Limited
Atlanta Energy Private Limited
Atlanta Hotels Private Limited
Atlanta Recycling Company Private Limited
Atlanta Tourism Ventures Limited
Atlanta Infra Assets Limited
Atlanta Ropar Tollways Private Limited
MORA Tollways Limited
Northeast Tollways Private Limited
iv Associate Companies:
Lucknow Varanasi Tollways Private Limited
v Enterprises over which Key Management Personnel is able to exercise
significant influence:
Atul Raj Builders Private Limited
Vaikuntam Realty Private Limited
Shrikant Studios Private Limited
(As identified and certified by the Management and relied upon by the
auditors, for details of transactions (excluding reimbursement) entered
into with the related parties refer Annexure - 1)
8. In the opinion of the Board, except otherwise stated all assets
other than fixed assets and non current investments, have a realisable
value in the ordinary course of business which is not different from
the amount at which it is stated. The provision for current liabilities
and other liabilities is adequate and not in excess of amount
reasonably necessary.
9. The Company has regrouped/reclassified the previous year figures
whereever necessary to conform the current year presentation.
Mar 31, 2014
A Corporate profile
Atlanta Limited (referred to as "the company") and its subsidiaries are
engaged in the business of Infrastructure development Engineering,
Procurement and Construction (EPC) contracts, Public, Private
Partnership (PPP Model on Build Operate and Transfer (BOT) and Design,
Build, Finance, Operate and Transfer (DBFOT) basis. Infrastructure
Development activities include, inter-alia, Construction of Roads,
Highways, Bridges and Runways on Build Operate and Transfer (BOT) and
Design, Build, Finance, Operate and Transfer (DBFOT) basis. The company
is also involved in Real Estate Development, Tourism, infrastructure
business and Mining of coal, lime stones etc.
1.1 Equity shares
The company has one class of equity share having a face value of Rs. 2/-
each. Each shareholder is eligible for one vote per share held. In the
event of liquidation of the company, the equity shareholders are
eligible to receive the remaining assets of the company after
distribution of all preferential amounts, in proportion to their
shareholding.
1.2 Preference shares
a) 25% Cumulative Redeemable Non-Convertible Preference Shares of face
value of Rs. 10/- each were issued at a premium of Rs. 40/- each as under:-
i) 10,00,000 shares were issued on 28th March, 2005 ii) 15,00,000
shares were issued on 28th November, 2005 Total 25,00,000 shares
b) These shares are redeemable after 15 years or at any time at the
sole discretion of the company at Rs. 50/- per share
c) The said preference shares have a lock-in-period of 15 years
d) Preference Share holders have right to vote if and only if any,
under following situation:-
i) No dividend is paid for two years successively, or
ii) No dividend is paid for a period of three years out of a block of
six years
1.3 The company has not granted any options to its employees under
employees stock options scheme (ESOP) since inception.
1.4 General Reserve has been created in terms of companies (Transfer of
Profits to Reserves) Rules, 1975 and is bound by the Rules in
connection therewith.
1.5 In the 29th Annual General Meeting of the Company held on 28th
September, 2012, the Shareholders did not approve the dividend proposed
by Board of Directors for the financial year 2011-12 amounting to Rs.
1,63,00,000/-. Hence, the proposed dividend and tax on dividend thereon
aggregating to Rs. 1,89,44,268/- has been reversed in the accounts for
the financial year ended March 31, 2013.
1.6 Long Term Borrowings Secured by:
Term Loan from Allahabad Bank is secured by exclusive first charge by
way of assignment of all the rights, title, interest and benefits
whatsoever of the company relating to Mumbra By-pass BOT-Project and
securitization of entire toll receivable of Mumbra By-Pass through
Escrow mechanism.
Loan from Life Insurance Corporation of India Ltd is secured against
the surrender value of key man insurance policies of the Directors
assigned in favor of company.
Loan against pledge of shares are secured by pledge of
promoter/promoter group''s equity shares of Atlanta Ltd for due payment
of loan together with all interest ,liquidated damages,costs,charges
and other money payable under the loan agreements.
1.7 The company, following the principle of prudence, conservatism and
matching principle of cost and revenue in an EPC contract for
Engineering, Designing, Procuring and Construction of road projects at
Nagpur, Ropar and Patna, provides for expenditure on such contract so
that profit from the contract is accrued proportionately in relation to
the physical progress of the work throughout the contract. In view
thereof, long term provision includes year end closing provision ofRs.
1,794,992,040/- (previous year Rs. 101,97,06,857/-).
2.1 *Amortization of BOT Rights is provided in accordance with
F.No.17/292/2011 CL -V dated 17th April, 2012 issued by the Ministry of
Corporate Affairs for fixing the amortization rates for noncurrent
assets being BOT Tolling Assets. The company has computed amortization
in accordance with the new Schedule XIV order.
2.2 Expenditure on EPC contracts
The company, following the principle of prudence, conservatism and
matching principle of cost and revenue in an EPC contract for
Engineering, Designing, Procuring and Construction of road project at
Mohania - Ara (Bihar), Ropar (Punjab) and Nagpur provides for
expenditure on such contract so that profit from the contract is
accrued proportionately in relation to the physical progress of the
work throughout the contract. In view thereof, in this account an
amount of Rs. 77,52,85,182/- (net of previous year''s provision of Rs.
100,16,48,514/-) has been adjusted in the Operating expenses.
2.3 No provision has been made in respect of Leave Encashment, as the
employees of the company are required to utilize their entitlement of
earned leave before the end of the financial year.
(Amount in Rs.)
3 Contingent liabilities and commitments (to the extent not provided
for) March 31, 2014 March 31, 2013
(i) Contingent liabilities
a. Corporate guarantee given to
bank and financial Institution on
behalf of a 2,500,000,000 2,500,000,000
subsidiary company
b. Guarantees on behalf of Company
given by Banks to Contracting
Authorities. 520,025,000 898,031,457
c. Disputed Income Tax Liability 406,495,900 121,369,260
(ii) Commitments
a. Estimated amount of contracts remaining to be executed on capital
account and Nil Nil not provided for
b. Uncalled liability on shares and other investments partly paid Nil
Nil
c. Other commitments (specify nature) Nil Nil
4 In the opinion of the management, the current assets, loans and
advances and current liabilities are approximately stated if realized
in the ordinary course of business. The balances of debtors, creditors
and loans & advances are subject to confirmation and reconciliation.
if any. The provisions for all other liabilities are adequate and not
in excess of the amount reasonably necessary.
5 Segment information_
The company is engaged in the business of contracting activities i.e.
construction and development of infrastructure. The entire operations
are governed by the same set of risk and rewards and therefore the same
has been considered as representing single primary business segment.
The company operates within a single geographical segment i.e. India.
In view of this, the disclosure requirements of Accounting Standards
(AS-17) "Segment Reporting" issued by the Institute of Chartered
Accountants of India are not applicable.
6 Impairment of assets
There was no impairment Loss on fixed assets on the basis of review
carried out by the Management in accordance with the Accounting
Standards (AS-28) "Impairment of Assets" issued by the Institute of
Chartered Accountants of India.
7 Disclosures of related parties transactions_
As per the Accounting Standards (AS -18) "Related Party Disclosure"
issued by the Institute of Chartered Accountants of India, the
disclosure of transactions with related parties as defined in the
Accounting Standards for the period ended 31st March, 2014 is given
below:
A List of related parties i Key Management Personnel and their
relatives:
Rajhoo Bbarot - Chairman & Managing Director Rikiin R. Bbarot - Joint
Managing Director Bhavana R. Bbarot Pooja R. Bbarot Ridhima M. Doshi
Rajhoo A. Bbarot - HUF Ambalal P. Barot - HUF ii Partnership firms and
joint ventures: ABT Developers Atlanta Thakural Constructions Shreenath
Builders AAP Constructions Atlanta-ARSS Joint Venture ARSS-Atlanta
Joint Venture
iii Subsidiaries:
Atlanta Coalmines Pvt. Ltd. Atlanta Energy Pvt. Ltd. Atlanta Hotels
Pvt. Ltd. Atlanta Recycling Company Pvt. Ltd. Atlanta Tourism
Ventures Ltd. Atlanta Infra Assets Ltd. Atlanta Ropar Tollways Pvt.
Ltd. MORA Tollways Ltd.
iv Associate Companies:
Lucknow Varanasi Tollways Pvt. Ltd. v Enterprises over which Key
Management Personnel is able to exercise significant influence: Atul
Raj Builders Pvt. Ltd. Vaikuntam Realty Pvt. Ltd. Shrikant Studios
Pvt. Ltd.
(As identified and certified by the Management and relied upon by the
auditors, for details of transactions (excluding reimbursement) entered
into with the related parties refer Annexure - 1)
8 In the opinion of the Board, except otherwise stated all assets
other than fixed assets and non current investments, have a realisable
value in the ordinary course of business which is not different from
the amount at which it is stated. The provision for current liabilities
and other liabilities is adequate and not in excess of amount
reasonably necessary.
9 The company has regrouped/reclassified the previous year figures
whereever necessary to conform the current year presentation.
Mar 31, 2013
1 Prior period adjustments
Prior period adjustments of Rs. 11,91,05,334/- is in respect of reversal
of interest income on capital with a partnership firm. The partners of
the firm mutually agreed to discontinue the interest charged on
partners'' capital. Accordingly amount of Rs. 11,91,05,334/- being
interest on capital from the said firm pertaining to earlier years have
been written back during the year.
2 In the opinion of the Management, the Current Assets, Loans and
Advances and Current Liabilities are approximately stated if realized
in the ordinary course of business. The balances of debtors, creditors
and loans & advances are subject to confirmation and reconciliation.
if any. The provisions for all other liabilities are adequate and not
in excess of the amount reasonably necessary.
3 Segment Information
The Company is engaged in the business of contracting activities i.e.
construction and development of infrastructure. The entire operations
are governed by the same set of risk and rewards and therefore the same
has been considered as representing single primary business segment.
The Company operates within a single geographical segment i.e. India.
In view of this, the disclosure requirements of Accounting Standards
(AS-17) "Segment Reporting" issued by the Institute of Chartered
Accountants of India are not applicable.
4 Impairment of Assets
There was no impairment Loss on fixed assets on the basis of review
carried out by the Management in accordance with the Accounting
Standards AS-28 "Impairment of Assets" issued by the Institute of
Chartered Accountants of India.
5 Disclosures of Related Parties Transactions
As per the Accounting Standards AS - 18 "Related Party Disclosure"
issued by the Institute of Chartered Accountants of India, the
disclosure of transactions with related parties as defined in the
Accounting Standards for the period ended 31st March, 2013 is given
below: A List of Related Parties i Key Management Personnel and their
Relatives:
Rajhoo Bbarot - Managing Director
Rikiin R. Bbarot- Executive Director
Bhavana R. Bbarot
Pooja R. Bbarot
Ridhima M. Doshi
Rajhoo A. Bbarot - HUF
Ambalal P. Barot - HUF ii Partnership Firms and Joint Ventures:
ABT Developers
Atlanta Thakural Constructions
Shreenath Builders
AAP Constructions
Atlanta-ARSS Joint Venture
ARSS-Atlanta Joint Venture iii Subsidiaries:
Atlanta Coalmines Pvt. Ltd.
Atlanta Energy Pvt. Ltd.
Atlanta Hotels Pvt. Ltd. (formerly known as Atlanta Nature Homes Pvt.
Ltd.)
Atlanta Recycling Company Pvt. Ltd.
Atlanta Tourism Ventures Ltd. (formerly known as Atlanta Urban
Infrastructure Projects Pvt. Ltd.)
Atlanta Infra Assets Ltd. (formerly known as Balaji Toll Ways Ltd.)
Atlanta Ropar Tollways Pvt. Ltd. (formerly known as ARSS Action Ropar
Tollway Pvt. Ltd.)
MORA Tollways Ltd. iv Associate Companies:
Lucknow Varanasi Tollways Pvt. Ltd. v Enterprises over which Key
Management Personnel is able to exercise significant influence:
Atul Raj Builders Pvt. Ltd.
Vaikuntam Realty Pvt. Ltd.
Shrikant Studios Pvt. Ltd.
(As identified and certified by the Management and relied upon by the
auditors, for details of transactions (excluding reimbursement) entered
into with the related parties refer Annexure - 1).
6 The Company has regrouped/reclassified the previous year figures
wherever necessary to conform the current year presentation.
Mar 31, 2012
I Corporate Profile
Atlanta Limited (referred to as "the Company") and its subsidiaries are
engaged in the business of Infrastructure development on Engineering,
Procurement and Construction (EPC) basis and Public Private Partnership
(PPP) Model on Build, Operate and Transfer (BOT) and Design, Build,
Finance, Operate and Transfer (DBFOT) basis. Infrastructure
Development activities include, inter-alia, construction of Road,
Highways, Bridges and Runways on Build, Operate and Transfer (BOT) and
Design, Build, Finance, Operate and Transfer (DBFOT) basis. The
Company is also involved in Real Estate Development, Tourism
infrastructure business segment and Mining of coal, lime stones.
March 31,2012 March 31.2011
2 Contingent liabilities and
commitments (to the extent not provided
for)
(i) Contingent Liabilities
a. Corporate guarantee given to
Banks and Financial Institution on
behalf of a Subsidiary Company 2,500,000,000 1,500,000,000
b. Guarantees from Scheduled Banks 1,002,838,085 449,465,766
c. Unexpired Letter of Credit
from Scheduled Banks 144,365,816 128,754,359
(ii) Commitments
a. Estimated amount of contracts
remaining to be executed on capital
account and not provided for Nil Nil
b. Uncalled liability on shares and
other investments partly paid Nil Nil
c. Other commitments (specify nature) Nil Nil
30 Details of Proposed Dividend
Particulars Total Per share
a. Dividends proposed to be
distributed to equity shareholders 16,300,000 0.20
b. Dividends proposed to be
distributed to preference shareholders 6,250,000 2.50
c. Arrears of fixed cumulative
dividends on preference shares Nil Nil
3 In the opinion of the Management, the Current Assets, Loans and
Advances and Current Liabilities are approximately stated if realised
in the ordinary course of business. The balances of Debtors, Creditors
and Loans & Advances are subject to confirmation and reconciliation, if
any. The provisions for all other liabilities is adequate and not in
excess of the amount reasonably necessary.
As per the Accounting Standard - AS-18 "Related Party Disclosure"
issued by the Institute of Chartered Accountants of India, the
disclosure of transactions with related parties as defined in the
Accounting Standard for the period ended 31st March, 2012 is given
below:
A List of Related Parties
i Key Management Personnel and their Relatives
Rajhoo Bbarot, Managing Director Rikiin R. Bbarot, Executive Director
Bhavana R.Bbarot Pooja Bbarot Ridhima M. Doshi Rajhoo A. Bbarot- HUF
AmbalalP.Barot-HUF Vevan R. Bbarot ii Directors Arpan Braiimbhatt G
Viswanathan Samir Degan
iii Associates and Joint Ventures
ABT Developers
Atlanta Thakural Constructions
Shreenath Builders
Atlanta-ARSS Joint Venture
ARSS-Atlanta Joint Venture
Prakash Alanta Joint Venture
Gammon Atlanta Joint Venture iv Enterprises over which key Management
Personnel is able to exercise significant influence
Subsidiaries:
Atlanta Coalmines Pvt. Ltd.
Atlanta Energy Pvt. Ltd.
Atlanta Hotels Pvt. Ltd. (formerly know as Atlanta Nature Homes Pvt.
Ltd.)
Atlanta Recycling Company Pvt. Ltd.
Atlanta Tourism Ventures Ltd. (formerly known as Atlanta Urban
Infrastructure Projects Pvt. Ltd.)
Atlanta Infra Assets Ltd. (formerly known as Balaji Tollways Ltd.)
Atlanta Ropar Tollways Pvt. Ltd. (formerly known as ARSS Action Ropar
Tollway Pvt. Ltd.)
MORA Tollways Ltd. v Other Associate Companies
Atul Raj Builders Pvt. Ltd.
Ideal Toll Road Investments and Operations Pvt. Ltd.
Vaikuntam Realty Pvt. Ltd.
Shrikant Studios Pvt. Ltd.
Lucknow Varanasi Tollways Pvt. Ltd.
(As identified and certified by the Management and relied upon by the
auditors, for details of transactions (excluding reimbursement) entered
into with the related parties refer Annexure -1)
4 Prior year Comparatives
Hitherto, up to the year ended March 31, 2011, the Company was
preparing the financial statements as per the pre-revised Schedule VI
to the Companies Act, 1956. During the year ended March 31, 2012, the
revised Schedule VI notified under the Companies Act, 1956, has become
applicable to the Company. The Company has reclassified the published
previous year figures to conform to the norms of the revised Schedule
VI. The adoption of the revised Schedule VI does not impact
recognition and measurement principles followed for preparation of the
financial statements. However, it significantly impacts presentation
and disclosures made in the financial statements, particularly
presentation of Balance Sheet.
Mar 31, 2011
(1) Contingent liabilities not provided for:
a) Guarantees given by the banks on behalf of the Company Rs
44,94,65,766/- (Previous year Rs 61,51,09,603/ )
b) Unexpired Letters of Credit Rs 12,87,64,359/- (Previous year Rs
11,89,63,277/-)
c) Corporate guarantee given to Bank and Financial Institution on
behalf of subsidiary company namely Atlanta Infra Assets Ltd. (formerly
known as Balaji Toll Ways Ltd.) amounting to Rs 1,50,00,00,000/-
(Previous year 1,50,00,00,000) against term loan availed by them
d) Disputed Income Tax demand for which appeal is pending before
Appellate Authority Rs. Nil (Previous year Rs 12,28,55,795/-)
(2) 7 years National Saving Certificates and Kisan Vikas Patra of the
face value of Rs 8,35,200/- (Previous year Rs 8,35,200/-) have been
lodged as security with Municipal Corporation, Mumbai.
(3) In the opinion of the Management, the Current Assets, Loans and
Advances and Current Liabilities are approximately stated if realized
in the ordinary course of business. The balances of Debtors, Creditors
and Loans & Advances are subject to confirmation and reconciliation, if
any. The provisions for all other liabilities is adequate and not in
excess of the amount reasonably necessary.
(4) Amount paid as Compensation for short-term loans availed by the
Company are treated as discounting charges by the Company and has been
merged with interest and financial charges.
(5) The Company, following the principle of prudence, conservatism and
matching principle of cost and revenue in an EPC contract for
Engineering, Designing, Procuring and Construction of road project in
Nagpur provides for expenditure on such contract so that profit from
the contract is accrued proportionately in relation to the physical
progress of the work throughout the contract. In view thereof, in this
account an amount of Rs 1,42,50,842/- (net of last year's provision of Rs
14,20,66,721/-) has been adjusted in the Operating Expenses.
(6) During the year under consideration the Company has written back an
amount of Rs 8,68,21,329.15 as operating income which represents
unclaimed and excess provision of expenses in respect of completed
projects.
(7) The Government of Maharashtra, Public Works Department (PWD) vide
agreement dated 18.10.2000 originally awarded a contract of
construction of Mumbra à Kausha Bypass Project on NH à 4, Mumbai Pune
Road on Built, Operate & Transfer (BOT) basis for a concession period
of 6 years and 9 months (including construction period).
Subsequently, due to change in the scope of work, a supplementary
agreement dated 11.5.2005 was entered which increased the concession
period to 10 years, 4 months and 25 days.
The Government of Maharashtra vide Notification dated 27.12.2007
authorised the Company to collect the toll from the vehicles passing
through the said road effective from 28.12.2007 to 11.9.2010 as per the
supplementary agreement.
However, the Company made a representation before the Contracting
Authority for enhancement of the concession period for various reasons
including change in scope of work. Based on such representations, the
PWD has recommended to the concerned authority for the enhancement of
concession period from 10 years, 4 months and 25 days to 24 years, 1
month and 17 days. The Company referred the matter before the Arbitral
Tribunal to resolve the issue. In the mean time the Government of
Maharashtra issued an Interim Notification extending the concession
period from 11-09-2010 to 21-09-2014. Considering the Interim
Notification and recommendation of the Chief Engineer (PWD), Mumbai
Region and also relying upon the legal opinion of a counsel, the
management is reasonably certain about the enhancement of concession
period as stated above. In view of this, the toll collection rights are
amortized in the manner whereby the total cost of the project i.e. Rs
156.59 crores is written off over the proposed enhanced concession
period of 24 years, 1 month and 17 days. The Company, therefore,
amortized the toll collection rights at Rs 8.64 crores, as against the
amortization of Rs 21.75 crores based on the concession period notified
by the Government of Maharashtra.
(8) In pursuance on announcement dated March 29, 2008 of the Institute
of Chartered Accountants of India on Accounting of Derivatives, Mark to
Market Loss on outstanding derivative instruments as on March 31, 2011
stood at Rs 6,26,05,376/- in respect of Rupee Foreign Currency Swap
Transaction. The Company does not hold or issue derivate financial
instruments for trading or speculative purpose and all the derivates
entered in to by the Company are to mitigate or offset the risk that
arise from their normal business activities only. Pending the
quantification of actual loss or gain on the expiry of derivate
contract with the authorized dealer the Company has not provided for
the Mark to Market Losses in the interim period.
(9) Loans and advances includes:
a. Advance to companies in which Directors are interested as Directors
Rs 42,92,764/- (previous year Nil). Maximum amount outstanding during
the year Rs 10,23,53,404/- (previous year Rs Nil).
b. Advances to subsidiaries:
c. Short-term loan given to subsidiary company namely Atlanta Infra
Assets Ltd. (formerly known as Balaji Toll Ways Ltd.) Rs
5,76,00,379/-(Previous year - Nil). Maximum outstanding Rs 5,76,00,379/-
(Previous year- Nil)
(10) The Company had based on valuation made by approved valuers
revalued some of its fixed assets in the various accounting years. The
resultant appreciation aggregated to Rs 3,99,90,973/- has been added to
the Gross Block of the Fixed Assets and credited to the Revaluation
Reserve as per details.
Consequent to revaluation, the appreciated proportion of Fixed Assets
has been depreciated at the rates applicable to the respective assets
under the straight-line method of depreciation.
(11) Hitherto, the company was not making any provision for leave
encashment. The company has, during the year changed its accounting
policy with regards to recognition of leave encashment liability and
computed liability of leave encashment till date and accordingly made a
provision of Rs 3,29,933/-. Due to this profit for the year under
consideration is lower to that extent.
(12) Deferred Tax
a) In compliance with Accounting Standard à 22 (AS à 22) on "Accounting
for Taxes on Income" issued by the Institute of Chartered Accountants
of India in respect of the deferred tax liability arising on account of
timing difference for the current financial year, a sum of Rs
31,35,078/- has been accounted as deferred tax asset.
(13) Income-tax assessments have been completed up to assessment year
2008-09 (31st March, 2008).
(14) Disclosure as per Accounting Standard -15 (Revised)
a) Defined Contribution Plan
The Company has recognized, in the Profit and Loss Account for the year
ended 31st March, 2011, contribution to provident fund amounting to Rs
10,60,317/- as expenses under defined contribution plan under the head
"Contribution to Provident and Other Funds" in schedule - 15 Ã
Employees Emoluments and Benefits.
v) Valuation Method : Projected Unit Credit Method
Note: The above disclosure is made to the extent of information given
by the actuaries.
(15) Segment Information
The Company is engaged in the business of contracting activities i.e.
construction and development of infrastructure. The entire operations
are governed by the same set of risk and rewards and therefore the same
has been considered as representing single primary business segment.
The Company operates within a single geographical segment i.e. India.
In view of this, the disclosure requirements of Accounting Standard
(AS-17) "Segment Reporting" issued by the Institute of Chartered
Accountants of India are not applicable.
(16) There was no impairment Loss on Fixed Assets on the basis of
review carried out by the Management in accordance with the Accounting
Standard à 28 "Impairment of Assets" issued by the Institute of
Chartered Accountants of India.
(17) Since the principle business of the Company is construction
activities, additional information pursuant to the provisions of
paragraphs 3 & 4 of Part II of Schedule IV of the Companies Act, 1956
are given below to the extent applicable.
(18) There are no Micro, Small and Medium Enterprises to whom the
Company owes the dues which are outstanding for more than forty five
days as at the Balance Sheet date. The above information regarding
Micro, Small and Medium Enterprises has been determined to the extent
such parties have been identified on the basis of information available
with the Company.
(19) Consequent to the approval of the members of the Company and upon
requisite regulatory compliance, during the year, one equity share of Rs
10/- each of the Company has been sub- divided in to five equity shares
of Rs 2/- each fully paid up. The Earnings Per Share on Rs. 2/- each has
been restated for the corresponding period in accordance with
Accounting Standard (AS-20) on "Earnings Per Share" as notified under
The Companies (Accounting Standard) Rules, 2006.
(20) Related Party Disclosures:
As per the Accounting Standard à 18 "Related Party Disclosure" issued
by the Institute of Chartered Accountants of India, the disclosure of
transactions with related parties as defined in the Accounting Standard
for the period ended 31st March, 2011 is given below:
A) List of Related Parties
Key Management Personnel and Their Relatives
Rajhoo Bbarot
Bhavana Bbarot
Rikiin Bbarot
Riddhima M. Doshi
Rajendra Barot HUF
Ambalal P. Barot HUF
Associates and Joint Ventures
ABT Developers
Atlanta Thakural Constructions
Shreenath Builders
Atlanta-ARSS Joint Venture
ARSS-Atlanta Joint Venture
Enterprises over which Key Management Personnel is able to exercise
significant influence. Subsidiaries:
Atlanta Coalmines Pvt. Ltd.
Atlanta Energy Pvt. Ltd.
Atlanta Nature Homes Pvt. Ltd.
Atlanta Recycling Company Pvt. Ltd.
Atlanta Tourism Venture Ltd. (formerly known as Atlanta
Urban Infrastructure Projects Pvt. Ltd.)
Atlanta Infra Assets Ltd. (formerly known as Balaji
Toll Ways Ltd.)
Other Associates Companies
MORA Tollways Ltd. (formerly known as Atlanta Infraprojects
Developers Private Ltd.)
Vaikuntam Realty Pvt Ltd.
Atul Raj Builders Pvt. Ltd.
Shrikant Studio Pvt. Ltd.
Ideal Toll Road Investments & Operations Pvt. Ltd.
(As identified and certified by the Management and relied upon by the
auditors. For details of transactions entered into with the related
parties refer AnnexureÃ1)
(21) Previous year's figures have been regrouped and rearranged
wherever necessary.
Mar 31, 2010
(1) Contingent liabilities not provided for:
a) Guarantees given by the banks on behalf of the Company Rs
61,51,09,603/- (Previous year Rs. 47,00,90,932/-).
b) Unexpired Letters of Credit Rs.11,89,63,277/- (Previous year Rs.
25,06,25,503/-)
c) Corporate guarantee given to Bank and Financial Institution on
behalf of group company (M/s. Balaji Toll Ways Ltd) amounting to
Rs.1,50,00,00,000/-(Previous year 1,10,00,00,000) against term loan
availed by the them.
d) Disputed Income Tax demand for which appeal is pending before
Appellate Authority Rs. 12,28,55,795/- (Previous year Rs.13,26,066/-)
(2) 7 years National Saving Certificates and Kisan Vikas Patra of the
face value of Rs. 8,35,200/- (Previous year Rs. 8,35,200/-) have been
lodged as security with Municipal Corporation, Mumbai.
(3) In the opinion of the Management, the current assets, Loans and
Advances and Current Liabilities are approximately stated if realized
in the ordinary course of business. The balances of debtors, creditors
and Loans & Advances are subject to confirmation and reconciliation, if
any. The provisions for all other liabilities is adequate and not in
excess of the amount reasonably necessary.
(4) Amount paid as Compensation for short-term loans availed by the
company are treated as discounting charges by the company and has been
merged with interest and financial charges.
(5) The company, following the principle of prudence, conservatism and
matching principle of cost and revenue in an EPC contract for
Engineering, Designing, Procuring and Construction of road project in
Nagpur provides for expenditure on such contract so that profit from
the contract is accrued proportionately in relation to the physical
progress of the work throughout the contract. In view thereof, in this
account an amount of Rs.1,47,30,458.00 (net of last yearÃs provision of
Rs. 11,35,40,255.50 has been adjusted in the Operating expenses.
(6) In the matter of Arbitration proceedings in respect of difference
and dispute arising out of contract of construction of à Arterial and
Sub Arterial Roadsà at Bangalore, the Arbitrator had made an award on
22-03-2003 in favor of the company against which the contracting
authority preferred an appeal before the City Civil Court Bangalore.
The Honorable City Civil Court Bangalore directed the contracting
authority to pay the amount of Rs. 30.16 Crores. The contract revenue
for the year includes an amount of Rs.9.59 crores on the basis of above
order.
(7) The Government of Maharashtra, Public Works Department (PWD) vide
agreement dated 18.10.2000 originally awarded a contract of
construction of Mumbra à Kausha By-pass Project on NH à 4, Mumbai Pune
Road on Built, Operate & Transfer (BOT) basis for a concession period
of 6 years and 9 months (including construction period).
Subsequently, due to change in the scope of work, a supplementary
agreement dated 11.5.2005 was entered which increased the concession
period to 10 years, 4 months and 25 days.
The Government of Maharashtra vide Notification dated 27.12.2007
authorised the company to collect the toll from the vehicles passing
through the said road effective from 28.12.2007 to 11.9.2010 as per the
supplementary agreement.
However, the company made a representation before the Contracting
Authority for enhancement of the concession period for various reasons
including change in scope of work. Based on such representations, the
PWD has recommended to the concerned Authority the enhancement of
concession period from 10 years, 4 months and 25 days to 24 years, 1
months and 17 days.
In the year under review the company referred the matter before the
Arbitral Tribunal to resolve the issue. In the men time the Government
of Maharashtra issued an interim Notification extending the concession
period from 11-09-2010 to 21-09- 2014.Considering the interim
Notification and recommendation of the Chief Engineer (PWD),Mumbai
Region and also relying upon the legal opinion of a counsel, the
management is reasonably certain about the enhancement of concession
period as stated above. In view of this, the toll collection rights are
amortized in the manner whereby the total cost of the project i.e.
Rs.142.27 crores is written off over the proposed enhanced concession
period of 24 years, 1 months and 17 days. The company, therefore,
amortized the toll collection rights at Rs.8.49 crores, as against the
amortization of Rs.21.18 crores based on the concession period notified
by the Government of Maharashtra.
(8) In pursuance on announcement dated March,29,2008 of the Institute
of Chartered Accountants of India on Accounting of Derivatives, Mark to
Market Loss on outstanding derivative instruments as on March,31,2010
stood at Rs. 7,88,94,340/- in respect of Rupee Foreign Currency Swap
Transaction. The company does not hold or issue derivate financial
instruments for trading or speculative purpose and all the derivates
entered in to by the company are to mitigate or offset the risk that
arise from their normal business activities only. Pending the
quantification of actual loss or gain on the expiry of derivate
contract with the authorized dealer the company has not provided for
the Mark to Market Losses in the interim period.
(9) In the 26th Annual General Meeting of the company held on 30th
September,2009, the Shareholders did not approve the dividend proposed
by Board of Directors for the financial year 2008-09 amounting to Rs.
1.63 crores. Hence, in the accounts for the year under review, the
proposed dividend and Dividend Tax there on aggregating to Rs. 1.90
crores has been reversed and credited back to Profit and Loss
Appropriation Account.
Consequent to revaluation, the appreciated proportion of Fixed Assets
has been depreciated at the rates applicable to the respective assets
under the straight-line method of depreciation. In the year under
consideration the company decided the commercial development of plot of
land situated at Shil Village, Thane, and accordingly the said land has
been transferred at a cost price to capital work in progress after
adjusting the revalued amount.
(10) Income-tax assessments have been completed up to assessment year
2008-09 (31st March, 2008)
(11) Disclosure as per Accounting Standard -15 (Revised)
a) Defined Contribution Plan
The Company has recognized, in the Profit and Loss Account for the year
ended 31st March,2009, contribution to provident fund amounting to Rs.
13,16,728/- as expenses under defined contribution plan under the head
"Contribution to Provident and Other Funds" in schedule - 15 Ã
employees Emoluments and Benefits.
(12) Segment Information
The company is engaged in the business of contracting activities i.e.
construction and development of infrastructure. The entire operations
are governed by the same set of risk and rewards and therefore the same
has been considered as representing single primary business segment.
The company operates with in a single geographical segment i.e. India.
In view of this, the disclosure requirements of Accounting Standard
(AS-17) Segment Reporting" issued by the Institute of Chartered
Accountants of India are not applicable.
(13) There was no impairment Loss on fixed assets on the basis of
review carried out by the Management in accordance with the Accounting
Standard à 28 "Impairment of Assets" issued by the Institute of
Chartered Accountants of India
(14) The company has not received any intimation from the suppliers
regarding the status as per the provisions of Micro, Small and Medium
Enterprises Development Act, 2006 and hence disclosure if any, relating
to the amounts unpaid as at the year end tighter with interest
paid/payable under the said act could not be furnished.
(15) Related Party Disclosures:
As per the Accounting standard - 18 "Related Party Disclosure" issued
by the Institute of Chartered Accountants of India, the disclosure of
transactions with related parties as defined in the Accounting Standard
for the period ended 31st March, 2010 is given below:
A) List of Related Parties
- Key Management Personnel and Their Relatives
Rajhoo Bbarot
Bhavana Bbarot
Rikiin Bbarot
Rekha A.Barot
Ambalal P.Barot
Ridhima M.Doshi
Mitul M.Doshi
Rajendra Barot HUF
Ambalal P. Barot HUF
G. Radhakrishnan
Associates and Joint Ventures
Prakash-Atlanta Joint Venture
Gammon-Atlanta Joint Venture
AAP Construction Company
Balaji Toll Ways Ltd.
ABT Developers
Atlanta Thakural Constructions
Shreenath Builders
Enterprises over which key Management Personnel is
able to exercise significant influence.
Atulraj Builders Pvt. Ltd
Shrikant Studio Pvt.Ltd
Ideal Toll Road Investments & Operations Pvt. Ltd.
(As identified and certified by the Management and relied upon by the
auditors. For details of transactions entered into with the related
parties refer Annexure - 1)
(16) Previous years figures have been regrouped and rearranged
whenever necessary.