Mar 31, 2014
Note - 1 Segment information
The Company has identified business segments as its primary segment.
Business segments are primarily Infrastructure and Trading. Revenues
and expenses directly attributable to segments are reported under each
reportable segment. Expenses which are not directly Identifiable to
each reportable segment have been allocated on the basis of associated
revenues of the segment and manpower efforts. All other expenses which
are not attributable or allocable to segments have been disclosed as
unallocable expenses. Assets and liabilities that are directly
attributable or allocable to segments are disclosed under each
reportable segment. All other assets and liabilities are disclosed as
unallocable.
Note - 2 Additional information to the financial statements
Note Particulars 31st March 2014 31st March 2013
(Rs.) (Rs.)
2.1 Contingent liabilities
and commitments
(to the extent not
provided for)
(i) Contingent liabilities
(a) Claims against the
Company not
acknowledged as debt
Demand Notice from
Sales tax (Refer
Note 23.18 below) 22,00,000/- 22,00,000/-
Penalty - Sales tax
- on the above Not Not
demand notice Determinable Determinable
(b) Guarantees
Mobilisation Bank
Guarantee issued by
Union Bank of India - 2,00,00,000/-
During the Year bank
guarantee worth of
Rs. 1,50,00,000/- had
been wrongly revoked
by Ashoka Buildcon Ltd.
And because of that
the Company had issued
a Legal Notice to
Ashoka Buildcon Ltd.
for the recovery of the
same and which has been
repaid by Ashoka
Buildcon Ltd. during
the same financial year.
(c) Performance bank
Guarantee 38,50,000/- -
(Against this 25% margin
money of Rs. 9,62,500/-
in the form Fixed deposit
with Union Bank of India
has been earmarked) and
the same has been
Included in Note. 12
(d) Defect Liability period
in respect of contracts Not Not
executed Determinable Determinable
3. Fund based Cash credit facility (sanctioned amount Rs. 800 lacs),
and Ad Hoc Fund Based Cash Credit of Rs 100 Lacs, non fund based Bank
Guarantee Facility (sanctioned limit of Rs. 320 lacs) from Union Bank
of India is secured primarily by way of hypothecation of movable
current assets of the company including stock of materials, work in
progress, finished goods and whole of the company''s bills outstanding,
receivables, book debts and collaterally by mortgage of Flat at Mumbai
and Nagpur and office premises at Nagpur in the name of the Managing
Director, Mr. Naresh Saboo jointly with his wife Mrs. Madhu Saboo and
pledge of 50,00,000 equity shares of Rs. 21- each of the company held
by the promoter company M/s Saboo Capital and Securities Pvt Ltd and
also by personal guarantee of Mr. Naresh S. Saboo, Managing Director
and Madhu Saboo, wife of Managing Director and corporate guarantee by
the promoter company M/s. Saboo Capital and Securities Pvt Ltd.
4. Disclosures required under Section 22 of the Micro, Small and Medium
Enterprises Development Act, 2006 Micro, Small and Medium Enterprises
in terms of section 22 of the Micro, Small and Medium Enterprises
Development Act, 2006 have been determined to the extent such parties
have been identified on the basis of information available with the
Company and relied upon by the auditors. The Company has not received
any instruction from suppliers regarding their status under the Micro,
Small and Medium Enterprises Development Act, 2006 and hence,
disclosures if any, relating to amounts unpaid as at the yearend
together with interest payable as required under the said Act have not
been given.
5. The balancesappearing under unsecured loans, sundry creditors,
sundry debtors, loans and advances, and certain banks are subject to
confirmation and reconciliation and consequential adjustment, if any,
will be accounted for in the year of confirmation and/or reconciliation
6. In the opinion of the Board, assets other than fixed assets do have
a value on realisation in the ordinary course of business at least
equal to the amount at which they are stated.
7. Since the Company recognises gratuity and leave salary expense on
payment basis no liability for the same has been ascertained and
provided in the accounts. Hence, the company has not complied with the
provisions of AS-15 "Accounting for Retirement Benefit".
8. The sales tax department in the finacial year 2011 -12, raised a
demand on the company for Rs. 22,00,000/-, against which the Company
has preferred an appeal against the department with the Assistant
Commissioner of Sales Tax (Appeals). The company has already deposited
Rs. 10,50,000/- of the demand raised under protest. Based on the
prevalent decisions of the appellate authorities and the
interpretations of the other relevant provisions, the company has been
legally advised that the demand is likely to be either deleted or
substantially reduced and accordingly no provision for the balance
demand has been done.
9. The Income Tax Departnent, Mumbai has raised a Demand of Rs.
28,70,971/- U/s 143(3) for the Year 2009-10, for which the Company has
preffered an Appeal which is Pending with Commissioner of Income Tax,
Appeals-37, Mumbai. However, there is no Provision is made by the
Company to discharge the liability. Based on the prevalent decisions of
the appellate authorities and the interpretations of the other relevant
provisions, the company has been legally advised that the demand is
likely to be either deleted or substantially reduced and accordingly no
provision for the balance demand has been done.
10. The Revised Schedule VI has become effective from 1 April, 2011
for the preparation of financial statements for the period beginning
from 1 st April 2011 by virtue of the Notification No.653 (E) dated
March 30,2011. This has significantly impacted the disclosure and
presentation made in the financial statements. The management has
prepared the financial statements providing appropriate disclosures as
required by the said revised Schedule VI and based on the various
guidance notes issued in this regard. Accordingly previous year''s
figures have been regrouped/reclassified and re-instated wherever
necessary to correspond with the current year''s
classification/disclosure as per the revised Schedule VI.
Mar 31, 2013
Note - 1 Segment information
The Company has identified business segments as its primary segment
Business segments are primarily Infrastructure, Tading and Realty.
Revenues and expenses directly attributable to segments are reported
under each reportable segment Expenses which are not directly
identifiable to each reportable segment have been allocated on the
basis of associated revenues of the segment and manpower efforts. All
other expenses which are not attributable or allocable to segments have
been disclosed as unallocable expenses. Assets and liabilities that are
directly attributable or allocable to segments are disclosed under each
reportable segment All other assets and liabilities are disclosed as
unallocable.
2.1 Fund based Cash credit facility (sanctioned amount Rs. 800 lacs),
and Ad Hoc Fund Based Cash Credit of Rs 100 Lacs, non fund based Bank
Guarantee Facility (sanctioned limit of Rs. 200 lacs) from Union Bank of
India is secured primarily by way of hypothecation of movable current
assets of the company including stock of materials, work in progress,
finished goods and whole of the company''s bills outstanding,
receivables, book debts and collaterally by mortgage of Flat at Mumbai
and Nagpur and office premises at Nagpur in the name of the Managing
Director, Mr. Naresh Saboo jointly with his wife Mrs. Madhu Saboo and
pledge of 50,00,000 equity snares of Rs. 21- each of the company held by
the promoter company M/s Saboo Capital and Securities Pvt Ltd and also
by personal guarantee of Mr. Naresh S. Saboo, Managing Director and
Madhu Saboo, wife of Managing Director and corporate guarantee by the
promoter company M/s. Saboo Capital and Securities Pvt Ltd.
2.2 Disclosures required under Section 22 of the Micro, Small and
Medium Enterprises Development Act, 20O6
Micro. Small and Medium Enterprises in terms of section 22 of the
Micro, Small and Medium Enterprises Development Act. 2006 have been
determined to the extent such parties have been identified on the basis
of information available with the Company and relied upon by the
auditors. The Company has not received any instruction from suppliers
regarding their status under the Micro, Small and Medium Enteiprises
Development Act 2006 and hence, disclosures if any. relating to amounts
unpaid as at the yearend together with interest payable as required
under the said Act have not been given.
2.3 The Company in the Extra Ordinary General Meeting (EOGM) of the
company held on 24th December, 2010, had approved the issue and
allotment of 37,00,000/- Warrants at 140/- per warrant convertible into
Equity shares of Rs. 21- each at a premium of Rs. 38/- per share in
accordance with the provistonsyrf the Companies Act, 1956 and
Securities and Exchange Board of India (Issue of Capital and Disclosure
Requirements) RegulatK3n,%009 to promoters and non-promoters
Accordingly, 25% of the total consideration of Rs. 14,80,00,000/- i. e Rs.
3,70,00,000/- has been received by the company and in-principle
approval of the Mumbai Stock Exchange (BSE) for the same had also been
obtained. The warrants were due for conversion into equivalent number
of shares on payment of the balance amount at any time on or. before
17th July. 2012. Since, the subscribers to the preferential allotment
have failed to honour their balance comitment of 75%, the company has
Fortied the same and the amount of Rs 3,70,00,000/- trtansferred to
Capital Reserve (Reserve & Surplus).
2.4 The balances appearing under unsecured loans, sundry creditors,
sundry debtors, loans and advances, and certain banks are subject to
confirmation and reconciliation and consequential adjustment if any, wB
be accounted for in the year of confirmation and/ or reconciliation
2.5 In the opinion of the Board, assets other than fixed assets do
have a value on realisation in the ordinary course of business at least
equal to the amount at which they are stated.
2.6 Since the Company recognises gratuity and leave salary expense on
payment basis no liability for the same has been ascertained and
provided in the accounts. Hence, the company has not compied with the
provisions of AS-15 "Accounting for Retirement Benefit".
2.7 The sales tax department had in the previous year, raised a
demand on the company for Rs. 22.00,000/-, against which the Company has
preferred an appeal against the department with the Assistant
Commissioner of Sales Tax (Appeals). The company has already deposited
Rs. 10,50,000/- of the demand raised under protest. Based on the
prevalent decisions of the appeBate authorities and the interpretations
of the other relevant provisions, the company has been legaly advised
that the demand is likely to be either deleted or substantially reduced
and aaonJngry no provision for the balance demand has been done.
2.8 The Income Tax Departnent, Mumbai has raised a Demand of Rs.
28,70,971/- U/s 143(3) for the Year 2009-10, for which the Company has
preffered an Appeal which is Pending with Commissioner of Income Tax,
Appeals-37, Mumbai. However, there is no Provision is made by the
Company to discharge the BaMity. Based on the prevalent decisions of
the appellate authorities and the interpretations of the other relevant
provisions, the company has been legally advised that the demand is
likely to be either deleted or substanu''aty reduced and accordingly no
provision for the balance demand has been done.
2.9 The company has incurred a net loss of Rs. 1,77,84,464/- in
Infjpsturcutre segment during the Financial Year 2012-13.
2.10 The Revised Schedule VI has become effective from 1 April, 2011
for the preparation of financial statements for the period begiining
from 1st April 2011 by virtue of the Notification No.653 (E) dated
March 30, 2011. This has significantly impacted the dfedosure and
presentation made in the financial statements. The manager^ has
prepared the financial statements providing appropriate disclosures as
required by the said revised Schedule VI and based on the various
guidance notes issued in this regard. Accordingly previous year''s
figures have been regrouped/reclassifted and re-instated wherever
necessary to correspond with the current year''s
dassifiration/disctosure as per the revised Schedule VI.
Mar 31, 2012
Note - 1 Segment Information
The Company has identified business segments as its primary segment
Business segments are primarily infrastructure, Trading and Realty.
Revenues and expenses directly attributable to segments are reported
under each reportable segment. Expenses which are not directly
identifiable to each reportable segment have been allocated on the
basis of associated revenues of the segment and manpower efforts. All
other expenses which are not attributable or allocable to segments have
been disclosed as unallocable expenses. Assets and liabffities that are
directly attributable or allocable to segments are disclosed under each
reportable segment All other assets and liabilities are disclosed as
unallocable.
NOTE
paticulars Note As at 31st As at 31st
NO March 2012 31st March.
2011
(Rs.) (Rs.)
2.1 Contingent liabilities
and commitments (to the
extent not provided for)
(I) Contingent liabilities
(a) Claims against the
Company not acknowledged
as debt Demand Notice from
Sales tax (Refer Note
23.18 below) 22,00,000/- 22,00,000/-
Penalty - Sales tax - on the above
demand notice Not Determinable Not
Determinable
(b) Guarantees
Mobilisation Bank Guarantee issued
by Union Bank of India 2,00,00,0001- 1,50,00,000/-
(Against this 25% margin money of Rs. 50,00,000/-
in the form Fixed deposit with
Union Bank of India has been earmarked
and the same has been included in note 12)
c) Defect Liability period in respect of contracts executed Not
Determinable Not Determinable
Note: Figures in bracket indicates previous years figures
Further all the above borrowings are also secured either by way of
guarantee by the promoter company M/s. Saboo Capital and Securities Pvt
Ltd and/or personal guarantee of Mr. Naresh S. Saboo, Managing
Director. Further, the secured borrowings are repayable over a period
of 3 to 5 years.
Note: Figures In bracket Indicates previous years figures
All the above borrowings are also secured either by way of guarantee by
the promoter company M/s. Saboo Capital and Securities Pvt Ud and/or
personal guarantee of Mr. Naresh S. Saboo, Managing Director.
2.2 Fund based Cash credtt facility (sanctioned amount Rs. 700 lacs),
adhoc limit of * 100 lacs, non fund based Bank Guarantee Facility
(sanctioned limit of Rs. 200 lacs) and LC Foreign facility X 100 lacs
from Union Bank of Indut is secured primarily by way of hypothecation
of movable current assets of the company including stock of materials,
work in progress, finished goods and whole of the company's bills
outstanding, receivables, book debts and collaterally by mortgage of
Flat at Mumbai and Nagpur and office premises at Nagpur in the name of
the Managing Director, Mr. Naresh Saboo jointy with his wife Mrs. Madhu
Saboo and pledge of 50,00,000 equity shares of * 21- each of the
company held by the promoter company M/s Saboo Capital and Securities
Pvt Ud and also by personal guarantee of Mr. Naresh S. Saboo, Managing
Director and Madhu Saboo, wife of Managing Director and corporate
guarantee by the promoter company M/s. Saboo Capital and Securities Pvt
Ud.
2.3 Disclosures required under Section 22 of the Micro, Small and
Medium Enterprises Development Act, 2006
Micro, Small and Medium Enterprises in terms of section 22 of the
Micro, Small and Medium Enterprises Development Act, 2006 have been
determined to the extent such parties have been identified on the basis
of information avalable with the Company and relied upon by the
auditors. The Company has not received any instruction from suppiers
regartfng their status under the Micro, Small and Medium Enterprises
Development Act, 2006 and hence, disclosures if any, relating to
amounts unpaid as at the yearend together with interest payable as
required under the said Act have not been given.
2.4 The Company in the Extra Ordinary General Meeting (EOGM) of the
company held on 24th December, 2010, had approved the issue and
allotment of 37,00,000/- Warrants at Rs. 40/- per warrant convertible
into Equity shares of 7 21- each at a premium of Rs. 38/- per share in
accordance with the provisions of the Companies Act, 1956 and
Securities and Exchange Board of India (Issue of Capital and Disclosure
Requirements) Regulation, 2009 to promoters and non-promoters
Accordingly, 25% of the total consideration of Rs. 14,80,00,000/- i. e Rs.
3,70,00,000/- has been received by the company and in-principle
approval of the Mumbai Stock Exchange (BSE) for the same had also been
obtained. The warrants were due for conversion into equivalent number
of shares on payment of the balance amount at any time on or before
17th July, 2012. Since, the subscribers to the preferential allotment
have failed to honour their balance commitment of 75%, the company is
seeking an application with SEBI for relaxation in the strict
compliance of the Securities and Exchange Board of India (Issue of
Capital and Disclosure Requirements) Regulation, 2009 Subject to the
outcome of the application to SEBI, the amounts have been reflected as
money received under Share warrants.
2.5 Other loan and advances includes: a) t 7,00,00,000/- (As at 31st
March, 2011 Rs. 7,00,00,000/-) (agreement value) advanced towards
property at Pune for which the agreement for sale had been entered and
registered in the name of the company. However the deed of conveyance
has not been executed and hence not registered, due to Rs. 1,32,50,000/-
out of the total consideration of Rs. 7,00,00,000/- being outstanding to
be paid by the company to the vendors on account of ongoing litigation.
The outstanding amount has been fully provided for in the accounts.
b) 7 3,87,29,381/- (As at 31st March, 2011 Rs. 6,00,00,000/-) receivable
from M/s Tarangan Infraventures Private Limited (TIPL). The land
development agreement with T1PL in the previous year to redevelop the
property at Pune has been canoeNed during the year due to non
fulfilment of the obligation by TIPL as specified in the said
agreement. The company has post cancellation of the agreement, received
only part of the amount advanced in the previous year and had therefore
entered into a Memorandum of Understanding (MOU) dated 13th October,
2011 with TIPL according to which interest O 15% on such outstanding
amounts shall be payabale by TIPL from December 2011 till date of
payment. Accordingly the company has recognised interest upto 31st
March, 2012 aggregating to Rs. 18,65,979/- which has been included in
other income in Note 15. The company is confident to recover the
balance principal along with applicable interest from TIPL and hence the
total amount o/s is good according to the management and no
provisioning is required for the same.
2.5 The balances appearing under unsecured loans, sundry creditors,
sundry debtors, loans and advances, and certain banks are subject to
confirmation and reconciliation and consequential adjustment, if any,
will be accounted for in the year of confirmation and/or reconciliation
2.6 In the opinion of the Board, assets other than fixed assets do
have a value on realization in the ordinary course of business at least
equal to the amount at which they are stated.
2.7 Uncertified contract revenue of Rs. 21,07,009/- includes work
executed by the company which has not yet been certified by the
principal contractors. The management has determined the value of the
uncertified revenue based on the cost incurred by the company in
relation to the same.
2.8 Since the Company recognises gratuity and leave salary expense on
payment basis no liability for the same has been ascertained and
provided in the accounts. Hence, the company has not complied with the
provisions of AS-15 ÃAccounting for Retirement BenefitÃ.
23.17 The Company leases office under cancelable operating lease
agreements that are renewable on a periodic basis at the option of both
the lessor and the lessee. Rental payments under such leases are 7
13,84,111/- and Rs. 7,39,580/- during the year ended 31st March, 2012 and
2011 respectively.
2.9 The sales tax department had m the previous year, raised a demand
on the company for T 22,00,000/-, against which the Company has
preferred an appeal against the department with the Assistant
Commissioner of Sales Tax (Appeals). The company has already deposited
Rs. 10,50,000/- of the demand raised under protest. Based on the
prevalent decisions of the appellate authorities and the
interpretations of the other relevant provisions, the company has been
legally advised that the demand is likely to be either deleted or
substantially reduced and accordingly no provision for the balance
demand has been done.
2.10 The management has carried out the assessment on impairment of
individual assets by working out the recoverable amount based on lower
of the net realisable value and carrying cost during the period in
terms of AS 28 on ÃImpairment of Assets* issued by the Institute of
Chartered Accountants of India. Accordingly, impairment loss of 1
26,77,395/- has been recognised in respect of various assets for the
year.
2.11 The company has capitalised interest of 7 22,93,230/- paid on
capital borrowed for acquisition of Plant and Equipment till the date
of the asset being put to use in terms of the provisions of AS-16
ÃBorrowing Cost* issued by The Institute of Chartered Accountants of
India.
2.12 The company has during the year reversed excess
depreciation' 'charged in the previous years aggregating to an amount
of Rs. 2,07,611/-.
2.13 The Revised Schedule VI has become effective from 1 April, 2011
for the preparation of financial statements for the period beginning
from 1st April 2011 by virtue of the Notification No.653 (E) dated
March 30, 2011. This has significantly impacted the disclosure and
presentation made in the financial statements. The management has
prepared the financial statements providing disclosures as
required by the said revised Schedule VI and based on the
guidance notes issued in this regard. Accordingly previous year's
figures have been regrouped/reclassified and re-instated wherever
necessary to correspond with the current year's
classification/disclosure as per the revised Schedule VI.
Mar 31, 2011
1. Contingent Liabilities
a) Claims against the company not acknowledged as Debts:
Demand notice from IncomeTax for Assessment
Year 2003-04 (Refer Note 12 below) Rs.15,80,957/-
Penalty - Income Tax - Assessment Year 2003-04 Not determinable
Demand notice from Income Tax for Assessment
Year 2008-09 Rs.3,26,676/-
(Refer Note 12 below)
Penalty - Income Tax - Assessment Year 2008-09 Not determinable
Demand Notice from Sales tax
(Refer Note 13 below) Rs.22,00,000/-
Sales Tax Reassessment for A.Y 2001 -02 Rs.1,64,673/-
Penalty Sales Tax Reassessment for A.Y 2001 -02 Not determinable
b) Performance Bank Guarantee issued by Union
Bank of India Rs.1,50,00,000/-
c) Defect Liability period in respect of
contracts executed Not determinable
2. The Company in the Extra Ordinary General Meeting (EOGM) of the
company held on 24th December, 2010, approved the issue and allotment
of Rs. 37,00,000/- Warrants at 7 40/- per warrant convertible into Equity
shares of Rs.21- each at a premium of 7 38/- per share in accordance
with the provisions of the Companies Act, 1956 and Securities and
Exchange Board of India (Issue of Capital and Disclosure Requirements)
Regulation, 2009 to promoters and non-promoters Accordingly, 25% of the
total consideration of Rs.14,80,00,000/- i. e Rs.3,70,00,000/- has been
received by the company and in-principle approval of the Mumbai Stock
Exchange (BSE) for the same is also obtained.
3. Fund based Cash credit facility (sanctioned amount Rs.700 lacs) and
non fund based Bank Guarantee Facility (sanctioned limit of Rs.200 lacs)
from Union Bank of India is secured primarily by way of hypothecation
of movable current assets of the company including stock of materials,
work in progress, finished goods and whole of the company's bills
outstanding, receivables, book debts and collaterally by mortgage of
Flat at Mumbai and Nagpur and office premises at Nagpur in the name of
the Managing Director, Mr. Naresh Saboo jointly with his wife Mrs.
Madhu Saboo and pledge of 50,00,000 equity shares of Rs.21- each of the
company held by the promoter company M/s Saboo Capital and Securities
Pvt Ltd and also by personal guarantee of Mr. Naresh S. Saboo, Managing
Director and Madhu Saboo, wife of Managing Director and corporate
guarantee by the promoter company M/s. Saboo Capital and Securities Pvt
Ltd.
4. Uncertified contract revenue of Rs.84,57,414/- includes work
executed by the company which has not yet been certified by the
principal contractors. The management has determined the value of the
uncertified revenue based on the cost incurred by the company in
relation to the same.
5. Other advances includes:
- Rs.7,00,00,000/- (agreement value) advanced towards property at Pune
for which the agreement for sale had been entered and registered in the
name of the company. However the deed of conveyance has not been
executed and hence not registered, due to Rs. 1,32,50,000/- out of the
total consideration of Rs.7,00,00,000/- being outstanding to be paid by
the company to the vendors on account of ongoing litigation. The
outstanding amount has been fully provided for in the accounts.
- Rs.6,00,00,000/- advanced to M/s Tarangan Infraventures Pvt Ltd
towards development agreement for the above mentioned Pune Property
entered into by the company with M/s Tarangan Infraventures Pvt Ltd.
6. Since the Company recognises gratuity liability on payment basis,
no liability for the same has been ascertained and provided in the
accounts. Hence, the company has not complied with the provisions of
AS-15 "Accounting for Retirement Benefits".
7. In spite of the absence of database identifying parties as Small
Scale Industrial Undertakings (SSIs), it is of the opinion of the
management that there are no dues payable to SSIs. The auditors have
accepted the representation of the management in this regards.
8. Micro, Small and Medium Enterprises in terms of section 22 of the
Micro, Small and Medium Enterprises Development Act, 2006 have been
determined to the extent such parties have been identified on the basis
of information available with the Company and relied upon by the
auditors. The Company has not received any instruction from suppliers
regarding their status under the Micro, Small and Medium Enterprises
Development Act, 2006 and hence, disclosures if any, relating to
amounts unpaid as at the year end together with interest payable as
required under the said Act have not been given.
9. The balances appearing under unsecured loans, sundry creditors,
sundry debtors, loans and advances, and certain banks are subject to
confirmation and reconciliation and consequential adjustment, if any,
will be accounted for in the year of confirmation and/or
reconciliation.
10. In the opinion of the Board, the Current Assets, Loans and
Advances have value on realisation in the ordinary course of business,
at least equal to the amount at which they are stated in the Balance
Sheet.
11. The disputed demand in respect of Income Tax outstanding for the
Assessment Year 2003-04 is Rs.25,80,957/- against which the company has
preferred an appeal against the order of the CIT (Appeals) with the
Income Tax Appellate Tribunal, Mumbai. The company has already
deposited Rs.12,05,990/- of the demand raised under protest. The
disputed demand in respect of Income Tax outstanding for the Assessment
Year 2008-09 is Rs.3,26,676/- against which the company has preferred an
appeal with the CIT(Appeals), Mumbai. The company has already deposited
50% of the demand raised under protest.
Based on the prevalent decisions of the appellate authorities and the
interpretations of the other relevant provisions, the company has been
legally advised that the demand is likely to be either deleted or
substantially reduced and accordingly provision for the balance demand
has not been done.
12. The sales tax department has during the year under audit, raised a
demand on the company for Rs.22,00,000/-, against which the Company has
preferred an appeal against the department with the Assistant
Commissioner of Sales Tax (Appeals). The company has already deposited
Rs.10,50,000/- of the demand raised under protest. Based on the
prevalent decisions of the appellate authorities and the
interpretations of the other relevant provisions, the company has been
legally advised that the demand is likely to be either deleted or
substantially reduced and accordingly no provision for the balance
demand has been done.
13. The Company leases office under cancellable operating lease
agreements that are renewable on a periodic basis at the option of both
the lessor and the lessee. Rental payments under such leases are Rs.
7,39,580/- and Rs.5,15,960/- during the year ended 31st March, 2011 and
2010 respectively.
14. Related party disclosures as required by AS-18 are given below
(a) List of Related Parties
Key Managerial Personnel
Naresh Saboo
Kamlesh Prasad
Devendra Balasaria
Relatives of Key Managerial Personnel
Madhoo Saboo
Santosh Saboo
Rakesh Prasad
Associated Concerns
Saboo Capital and Securities Pvt. Ltd.
Diamant Infrastructure Developers Pvt Ltd
Diamant Realty Pvt Ltd
Diamant Securities Pvt Ltd
15. The management was of the opinion that there were no impairment
indicators that existed as on the balance sheet date. Hence no
provision for the impairment loss has been done.
16. Previous years figures have been regrouped / re-classified in
order to conform to current year's figures.
17. Balance Sheet and General Business Profile (in terms of Part IV of
Schedule VI to the Companies Act, 1956) is annexed here with.
Mar 31, 2010
1. Contingent Liabilities:
Claims against the company not
acknowledged as Debts Not ascertainable
Income Tax - Assessment Year 2003-04 Rs. 15,80,957/-
Penalty - Income Tax - Assessment
Year 2003-04 Not determinable
Defect Liability period in respect
of contracts executed Not determinable
Sales Tax Reassessment for A. Y.
2001-02 Rs. 1,64,673/-
Penalty Sales Tax Reassessment for
AY 2001 -02 Not determinable
2. During the year under audit, 35,95,850 equity shares of Rs. 10/-
each were allotted by the company as fully paid up bonus shares in the
ratio of 3 (Three) equity shares for every 1 (One) equity share held by
the shareholder of the company as on the record date, by capitalisation
of Rs. 3,59,58,500/- from the available free reserves pursuant to
resolution passed by the members at the Extra Ordinary General Meeting
(EOGM) of the Company held on 25th January, 2010.
3. At the Extra Ordinary General Meeting (EOGM) of the company on 8th
March, 2010, members passed a resolution to issue 22,45,000/- equity
shares of Rs. 10/- each for cash at a premium of Rs. 30/- per equity
share, aggregating to Rs. 8,98,00,000/- in accordance with the
provisions of the Companies Act, 1956 and Securities and Exchange Board
of India (Issue of Capital and Disclosure Requirements) Regulation,
2009 to non-promoters. Accordingly, the in-principle approval of the
Mumbai Stock Exchange (BSE) was obtained and the allotment of shares
was done on the 12th March, 2010.
4. Cash credit facility from Union Bank of India (sanctioned amount
Rs. 400 lacs) is secured primarily by way of hypothecation of book
debts and moveable stock in the form of Work In Progress and
collaterally by mortgage of Flat at Mumbai and Nagpur in the name of
the Managing Director, Mr. Naresh Saboo jointly with his wife Mrs.
Madhu Saboo and pledge of 2,50,000 shares of the company held by the
promoter company M/ s Saboo Capital and Securities Pvt Ltd and also by
personal guarantee of the promoter company M/s. Saboo Capital and
Securities Pvt Ltd, Mr. Naresh S. Saboo, Managing Director, Naresh
Jain, Director, and Madhu Saboo, wife of Managing Director.
5. Uncertified contract revenue of Rs. 44,36,838/- includes work
executed by the company which has not yet been certified by the
principal contractors. The management has determined the value of the
uncertified revenue based on the cost incurred by the company in
relation to the same.
6. Other advances includes Rs. 7,00,00,000/- (agreement value)
advanced towards property at Pune for which the agreement for sale had
been entered and registered in the name of the company. However the
deed of conveyance has not been executed and hence not registered, due
to Rs. 1,32,50,000/- out of the total consideration of Rs.
7,00,00,000/- being outstanding to be paid by the company to the
vendors. The outstanding amount has been fully provided for in the
accounts.
7. Since the Company recognises gratuity and leave salary expense on
payment basis, no liability for the same has been ascertained and
provided in the accounts. Hence, the company has not complied with the
provisions of AS-15 "Accounting for Retirement Benefit".
8. During the Year, a sum of Rs. Nil/- (Previous year Rs. 37,790/-)
being interest till the date the asset is put to use on borrowings
attributable to qualifying assets have been capitalised.
9. In spite of the absence of database identifying parties as Small
Scale Industrial Undertakings (SSIs), it is of the opinion of the
management that there are no dues payable to SSIs. The auditors have
accepted the representation of the management in this regards.
10. Under the Micro, Small and Medium Enterprises Development Act,
2006 certain disclosures are required to be made relating to Micro,
Small and Medium Enterprises. The Company is in the process of
compiling relevant information from its suppliers about their coverage
under the said Act. Since the relevant information is not readily
available, no disclosures have been made in the accounts. However, in
the opinion of the management, the impact of interest, if any, that may
be payable in accordance with the provision of this Act is not expected
to be material.
11. The balances appearing under unsecured loans, sundry creditors,
sundry debtors, loans and advances, and certain banks are subject to
confirmation and reconciliation and consequential adjustment, if any,
will be accounted for in the year of confirmation and/or
reconciliation.
12. In the opinion of the Board, the Current Assets, Loans and
Advances have value on realisation in the ordinary course of business,
at least equal to the amount at which they are stated in the Balance
Sheet.
13. The disputed demand in respect of Income Tax outstanding for the
Assessment Year 2003-04 of Rs. 20,96,632/-, for which the Company had
preferred an appeal against the department with the CIT (Appeals) has
been dismissed by the CIT (Appeals) and accordingly fresh demand has
been raised for Rs. 25,80,957/- The company has preferred a second
appeal against the order of the CIT (Appeals) with the Income Tax
Appellate Tribunal, Mumbai. The company has already paid 50% of the
demand raised earlier under protest. Based on the prevalent decisions
of the appellate authorities and the interpretations of the other
relevant provisions, the company has been legally advised that the
demand is likely to be either deleted or substantially reduced and
accordingly no provision for the balance demand has been made.
14. The Company leases office under cancellable operating lease
agreements that are renewable on a periodic basis at the option of both
the lessor and the lessee. Rental payments under such leases are Rs.
5,15,960/- and Rs. 2,72,580/- during the year ended 31 st March, 2010
and 2009 respectively.
15. Related party disclosures as required by AS-18 are given below
(a) List of Related Parties
Key Managerial Personnel
Naresh Jain
Naresh Saboo
Relatives of Key Managerial Personnel
Santosh Saboo
Associated Concerns
Verbana Mercantile Pvt. Ltd.
Saboo Capital and Securities Pvt. Ltd.
Obident Exports Pvt. Ltd.
Diamant Infrastructure Developers Pvt Ltd
Diamant Realty Pvt Ltd
Diamant Securities Pvt Ltd
16. The management was of the opinion that there were no impairment
indicators that existed as on the balance sheet date. Hence no
provision for the impairment loss has been done.
17. The company has provided for deferred tax. The net deferred tax
liability of Rs. 54,649/- as at the balance sheet date has been carried
forward. The net deferred tax liability consists of the following
components:
18. Previous years figures have been regrouped / re-classified in
order to conform to current years figures.
19. Balance Sheet and General Business Profile (in terms of Part IV of
Schedule VI to the Companies Act, 1956) is annexed herewith.