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Notes to Accounts of Citadel Realty & Developers Ltd.

Mar 31, 2015

1.In terms of Accounting Standard (AS 22) on "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India, the company has computed Deferred Tax Asset as there is virtual certainty supported by convincing evidence that there would be sufficient future taxable income that would be available for set off.

Contingent Liabilities not provided for in respect of

As at As at 31st March, 2015 31stMarch,2014 Amount Amount Rs. In Lacs Rs. In Lacs

(a) Show Cause Notice from Central Excise Authorities 1.42 1.42

(b) Estimated Liability in respect of Suit filed by Ex Workers 10.00 5.00 of the Company in Labour Court.

(c) Claims not acknowledged as debt 2.06 2.06

(d) Income Tax :

The company was served notices under Sec. 147 of the Income Tax Act, 1961 for Assessment Years 2004-05, 2005-06 and 2006-07 relating to sale of property of the company by the erstwhile management. The company filed the returns for the said three years on the basis of which the the Assessing Officer passsed orders enhancing the income for the said assessment years. The company has appealed against the orders of the assessing officer with the Commissioner of Appeals.(CIT Appeals.)

The status of the Assessments for these assessment years is as under:

A.Y. 2004-05

The Commissioner of Income Tax (Appeals) had upheld the order of the assessing officer.

The company has preferred an appeal to the Income Tax Appellate Tribunal against this order.

A.Y. 2005-06

The company has been granted substantial reliefs by the Commissioner of Income Tax (Appeals).

The Income Tax Department as well as the company have approached the Income Tax Appellate

Tribunal on certain points relating to the order.

A.Y. 2006-07

The company has approached the Income Tax Appellate Tribunal by way of an appeal against the order of the Commissioner of Income Tax Appeals.

In none of the above assessments any additional tax outgo is envisaged and hearings are yet to take place.

Note 2

a) The company was hitherto jointly developing an area admeasuring 2159 sq. mtrs of slum property with Mr. Vaibhav Kokate. During the year the company has entered into a partnership with Mr. Kokate in a firm named Shree Swami Samarth Builders and Developers (SSSBD) wherein the company has contributed to 50% of the capital of the partnership.

b) By virtue of a registered deed the company has transferred development rights pertaining to 2159 sq. mtrs owned by it to the partnership firm SSSBD. Mr. Kokate has also transferred land belonging to him into the partnership. In lieu of the company transferring the development rights it would be entitled to a percentage of the saleable area post the merger of the two land parcels which would be delivered to the company post obtaining the Occupation Certificate by SSSBD.

c) Further the company is entitled to 50% share in the profits of the firm SSSBD less what it would have received during the pendency of the project.

d) There is a mortgage created on the Land and Receivables of the company in favour of ICICI Bank Ltd against term loans sanctioned by them to Shree Swami Samarth Builders and Developers.

Note 3

Balances of sundry debit and credit balances are subject to confirmation from them.

On the basis of information furnished by the Management, the Board is of the opinion that Current Assets, Loans & advances have a value on realization in the ordinary course of the business at least equal to the amount at which they are stated in the Accounts except those items which are shown as doubtful or bad.

Note 4

Figures of the Previous Year are regrouped wherever necessary.


Mar 31, 2014

1) Revenue:

Revenue in respect of realty development activities is recognized upon the transfer of significant risks and rewards to the buyer in terms of the underlying sale agreement, provided it is not unreasonable to expect ultimate collection.

2) Contingent Liabilities not provided for in respect of :-

31.03.14 31.03.13 Amount Amount Rs. In Lacs Rs. In Lacs

a) Show Cause Notice from Central Excise Authorities 1.42 1.42

b) Estimated Liability in respect of Suit filed by Ex Workers 10.00 5.00 of the Company in Labour Court.

c) Claims not acknowledged as debt 2.06 2.06

d) Income Tax:

The company was served notices under Sec. 147 of the Income TaxAct, 1961 for Assessment Years 2004- 05, 2005-06 and 2006-07 relating to sale of property of the company by the erstwhile management. The company filed the returns for the said three years on the basis of which the the Assessing Officer passsed orders enhancing the income for the said assessment years. The company has appealed against the orders of the assessing officerwith the Commissioner of Appeals.(CIT Appeals.)

The status of the Assessments forthese assessment years is as under:

AY. 2004-05

The Commissioner of Income Tax (Appeals) had upheld the order pf the assessing officer. The company has preferred an appeal to the Income Tax Appellate Tribunal against this order.

AY 2005-06

The company has been granted substantial reliefs by the Commissioref of Income Tax (Appeals).

The Income Tax Department as well as the company have approached the Income Tax Appellate Tribunal on certain points relating to the order.

AY 2006-07

The company has approached the Income Tax Appellate Tribunal by way ofanapeal against the order of the Commissioner of Income Tax Appeals.

In none of the above assessments any additional tax outgo is envisaged and hearings are yet to take place.

3) The company has made substantial progress in the Slum Rehabilitation Project in Bhandup. The Rehabilitation Building has been completed and company has generated substantial Transferable Development Rights(TDR) Surplus TDR has been sold during the year.

During the year under review the company has realized revenue of Rs. 126.10 lakh being share of its TDR (Transfer of Development Right) entitlement generated from the Slum Rehabilitation Project undertaken by it.

4) a) Disclosure ofthe transactions with related parties as required by Accounting Standard 18(AS-18) On » RELATED PARTY DISCLOSURES " issued by the Institute of Chartered Accountants oflndia.

5) (a) Balances of sundry debtors & creditors are subject to confirmation from them.

(b) On the basis of information furnished by the Management , the Board is of the opinion that Current Assets, Loans & advances have a value on realization in the ordinary course of the business at least equal to the amount at which they are stated in the Accounts except those items which are shown as doubtful or bad.

6) Figures of the Previous Year are regrouped wherever necessary


Mar 31, 2013

1) Revenue:

Revenue in respect of realty development activities is recognized upon the transfer of significant risks and rewards to the buyer in terms of the underlying sale agreement, provided it is not unreasonable to expect ultimate collection.

2) Contingent Liabilities not provided for in respect of :-

31.03.13 31.03.12 Amount Amount Rs. In Lacs Rs. In Lacs

a) Show Cause Notice from Central Excise Authorities 1.42 1.42

b) Estimated Liability in respect of Suit filed by Ex-Workers 5.00 5.00 of the Company in Labour Court.

c) Claims not acknowledged as debt 2.06 2.06

d) Income Tax:

The company was served notices under Sec. 147 of the Income Tax Act, 1961 for Assessment Years 2004-05, 2005-06 and 2006-07 relating to sale of property of the company by the erstwhile management. The company filed the returns for the said three years on the basis of which the Assessing Officer passed orders enhancing the income for the said assessment years.

The company has appealed against the Orders of the Assessing Officer with the Commissioner of Appeals.(CITAppeals.)

The status of the Assessments for these assessment years is as under:

AY. 2004-05

The Commissioner of Income Tax (Appeals) had upheld the order of the Assessing Officer. The Company has preferred an appeal to the Income Tax Appellate Tribunal against this order.

AY 2005-06

The Company has been granted substantial reliefs by the Commissioner of Income Tax (Appeals). The Income Tax Department as well as the company have approached the Income Tax Appellate Tribunal on certain points relating to the Order.

AY 2006-07

The Company has approached the Income Tax Applllate Tribunal byway of an appeal against the order of the Commissioner of Income TaxAppeals.

In none of the above assessments any additional tax outgo is envisaged and hearings are yet to take place.

3) The Company has made substantial progress in the Slum Rehabilitation Project in Bhandup. The Rehabiltaton Building has been completed and has generated substantial Transfer of Development Rights(TDR) which would be used in the project for areas intended for sale. On the basis of current estimates there would be substantial TDR for sale as well. The sale area has generated considerable interest.

Note: The above information has been determined to the extent such parties have been identified on the basis of information provided by the company and approved by the management, which has been relied upon by the auditors.

4) (a) Balances of sundry debtors & creditors are subject to confirmation from them.

(b) On the basis of information furnished by the Management , the Board is of the opinion that Current Assets, Loans & advances have a value on realization in the ordinary course of the business at least equal to the amount at which they are stated in the Accounts except those items which are shown as doubtful orbad.

5) Figures of the Previous Year arere group edwherever necessary


Mar 31, 2012

1) Contingent Liabilities not provided for in respect of :-

31.03.12 31.03.11 Amount Amount Rs. In Lacs Rs. In Lacs

a) Show Cause Notice from Central Excise Authorities 1.42 1.42

b) Estimated Liability in respect of Suit filed by Ex Workers 5.00 5.00 of the Company in Labour Court.

c) Claims not acknowledged as debt 2.06 2.06

d) Income Tax:

The company was served notices under Sec. 147 of the Income Tax Act, 1961 for Assessment Years 2004-05, 2005-06 and 2006-07 relating to sale of property of the company by the erstwhile management. The company filed the returns for the said three years on the basis of which the Assessing Officer passed orders enhancing the income for the said assessment years. The company has appealed against the orders of the assessing officer with the Commissioner of Appeals. (CIT Appeals.)

The status of the Assessments for these assessment years is as under:

A.Y. 2004-05

The Commissioner of Income Tax (Appeals) had upheld the order of the assessing officer. The company has preferred an appeal to the Income Tax Appellate Tribunal against this order.

A.Y. 2005-06

The company has been granted substantial reliefs by the Commissioner of Income Tax (Appeals). The Income Tax Department as well as the company have approached the Income Tax Appellate Tribunal on certain points relating to the order.

A.Y. 2006-07

The company has approached the Income Tax Appellate Tribunal by way of an appeal against the order of the Commissioner of Income Tax Appeals.

In none of the above assessments any additional tax outgo is envisaged.

2) During the year, the company has completed the initial phase of its operations in the Slum Development project upto 25% and has transferred/sold the same. The sale consideration is determined on the basis of a valuation undertaken by an independent firm of Chartered Accountants and further authenticated by a firm of independent architects. Sale agreement with the buyer is yet to be registered. The sale has resulted in a profit that has been reflected in the Profit and Loss Account. In view of substantial carry forward of assessed business losses and unabsorbed depreciation there would be no Income Tax Liability. As agreed upon with the buyer, liability of indirect taxes if any arising out of such sale would be burned by the buyer.

3) During the year the company has paid 1.74 Cr. towards reimbursement of construction expenses borne on our behalf by the counterpart of the Joint Development of the Slum Development Project.

4) Disclosure of the transaction with related parties as required by Accounting Standard 18 (AS-18) on "RELATED PARTY DISCLOSURE" issued by the Institute of Chartered Accountants of India.

A) Related Parties Relationship

1) Marathon Realty Pvt. Ltd Associate Concerns

2) Fiber Box Bombay Pvt Ltd Associate Concerns

Note: The above information has been determined to the extent such parties have been identified on the basis of information provided by the company and approved by the management, which has been relied upon by the auditors.

5) (a) Balances of sundry debtors & creditors are subject to confirmation from them.

(b) On the basis of information furnished by the Management, the Board is of the opinion that Current Assets, Loans & advances have a value on realization in the ordinary course of the business at least equal to the amount at which they are stated in the Accounts except those items which are shown as doubtful or bad.

6) Figures of the Previous Year are regrouped wherever necessary.


Mar 31, 2011

1) The Company is jointly developing a slum property under the guidelines of the Slum Rehabilitation Authority.The slum property is situated in the Eastern Suburbs of Mumbai. The work in the project is progressing as per schedule.

2) a) Disclosure of the transactions with related parties as required by Accounting Standard 18 (AS18) On " RELATED PARTY DISCLOSURES " issued by the Institute of Chartered Accountants of India. 1) List of Related Parties & Relationship

A) Related Parties. Relationship

1) Marathon Realty Pvt.Ltd Associate Concern

2) Fiber Box Bombay Pvt Ltd Associate Concern

Note: The above information has been determined to the extent such parties have been identified on the basis of information provided by the company and approved by the management, which has been relied upon by the auditors.

b) In terms of Accounting Standard (AS 22) on "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India, there is a net deferred tax asset for the past years, in view of Unabsorbed depreciation/Losses. In Compliance with the Provisions of the Accounting Standard, the company has not recognized the said deferred tax asset while preparing the account for the year under audit.

3 (a) Balances of sundry debtors & creditors are subject to confirmation from them.

(b) On the basis of information furnished by the Management , the Board is of the opinion that Current Assets, Loans & advances have a value on realization in the ordinary course of the business at least equal to the amount at which they are stated in the Accounts except those items which are shown as doubtful or bad.


Mar 31, 2010

1) Contingent Liabilities not provided for in respect of :-

31.03.10 31.03.09

Amount Amount

Rs. in Lacs Rs. in Lacs

a) Show Cause Notice from Central Excise Authorities 1.42 1.42

b) Estimated Liability in respect of Suit filed by Ex Workers 5.00 5.00 of the Company in Labour Court.

c) Claims not acknowledged as debt 2.06 2.06

d) Income Tax :

During the year the Company was served notices under Sec. 147 of the Income Tax Act 1961 for Assessment Years 2004-05, 2005-06 and 2006-07 relating to sale of property of the company by the erstwhile management. The company filed the returns for the said three years on the basis of which the the Assessing Officer passsed orders enhancing the income for the said assessment years. The company has appealed against the orders of the assessing officer with CIT(A). The company has been advised that on the basis of merits of the case, there is a fair chance of the orders being set aside at the appellate level. In the remote event that the orders of the assessing officer are upheld at the Appellate level the income so determined would be set off by the assessed carried forward lossess and unabsorbed depreciation that is available to the company. Accordingly no additional provision for tax is necessary.

2) a) Disclosure of the transactions with related parties as required by Accounting Standard 18 (AS - 18) on "RELATED PARTY DISCLOSURES " issued by the Institute of Chartered Accountants of India.

b) In terms of Accounting Standard (AS 22) on "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India, there is a net deferred tax asset for the past years, in view of Unabsorbed depreciation/Losses. In Compliance with the Provisions of the Accounting Standards, the company has not recognized the said deferred tax asset while preparing the account for the year under audit.

3 (a) Balances of sundry debtors & creditors are subject to confirmation from them.

(b) On the basis of information furnished by the Management , the Board is of the opinion that Current Assets, Loans & advances have a value on realization in the ordinary course of the business at least equal to the amount at which they are stated in the Accounts except those items which are shown as doubtful or bad.

4 Information pursuant to provisions of paragraphs 3 , 4 , 4A , 4B , 4C & 4D of part II of the Schedule VI to the Companies Act, 1956 to the extent applicable.

5 Figures of the Previous Year are regrouped wherever necessary.

 
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