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Union Budget 2017-18
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Notes to Accounts of Housing Development & Infrastructure Ltd.

Mar 31, 2016

Details of securities and other terms and conditions are as under :-I) secured redeemable Non Convertible Debentures : -

a) secured redeemable Non Convertible Debentures (Listed) : -

2,425 (Previous year 13,975) 12% Secured Redeemable Non - Convertible Debentures of Rs. 10.00 lacs each fully paid, interest payable quarterly, are issued on Private Placement basis to various banks. These Debentures are Secured by mortgage of immovable properties admeasuring to about 7,01,992 Sq. mtrs. situated at village Kasarali, District Thane and 1,47,341 Sq. mtrs. situated at Village Kopri, District Thane, owned by Privilege Power and Infrastructure Private Limited, a wholly owned subsidiary of the Company. These Secured Non - Convertible Debentures are redeemable commencing from December, 2012 from first tranche onwards at 33% each in third and fourth year and 34% at the end of fifth year.

b) secured redeemable Non Convertible Debentures (Non listed) : -

a) 2,267 (Previous year 2,267)13.25% Secured Redeemable Non - Convertible Debentures of Rs. 10.00 lacs each fully paid, interest payable monthly, are issued on Private Placement basis to Life Insurance Corporation of India. The Debentures are secured by mortgage of 2,88,940 Sq. mtrs immovable properties situated at Village Doliv and Village Khardi, District Thane and further secured by mortgage of first to nine floors except 3rd, 4th and 6th floors of commercial building admeasuring 17,894.65 Sq. mtrs. situated at HDIL Towers, Survey No. 341(pt) CTS No. 608(pt), Bandra (East), Mumbai. These Secured Non - Convertible Debentures are redeemable in equal monthly installment of Rs. 100.00 lacs each commencing from 5th October, 2013.

b) Securities of the Debentures issued to Life Insurance Corporation of India are shared on pari-passu basis for the term loan from Life Insurance Corporation of India. (Also refer note : 7(III)(b))

II) All the above debentures have been personally guaranteed by

i) Executive Chairman of the Company

ii) Vice Chairman and Managing Director of the Company

III) IDBI Trustee is the trustee to all the above Debentures issued.

I) Loans repayable on demand from Scheduled Bank :-

Punjab and Maharashtra Co-operative Bank Limited :-

Secured by pledge of fixed deposit receipts with the bank, current rate of interest 13% (Previous year 13%)

II) Loans from Scheduled Banks :-

a) Central Bank of India :-

i) Secured by registered mortgage of immovable properties admeasuring 40,468.56 Sq. mtrs. situated at CTS No. 637A, Premier Road, Village Kurla, Mumbai. Repayable in 40 monthly installments (Step up installments) of Rs. 300.00 lacs each commencing from December, 2013 to March 2014, Rs. 349.00 lacs each commencing from April, 2014 to March 2015 and Rs. 500.00 lacs each commencing from April, 2015 to March 2017. Rate of interest base rate 5 % p.a. payable monthly.

b) The Jammu and Kashmir Bank :-

i) Term loan - I - Repayable in 12 quarterly installments of Rs. 834.00 lacs each commencing from September 2014. Interest rate is base rate 3.50% p.a. payable monthly.

ii) Term Loan - II - Secured by 1st Charge on the cash flows, receivables and project agreements/ project escrow account and project DSRA of the free sale area, and 1st charge by way of mortgage of development right. Loan repayable in 20 quarterly installments of Rs. 750.00 lacs each commencing from September 2016. Interest rate is base rate 3.00 % p.a. payable monthly.

iii) Term Loan - III - Secured by 1st Charge on the cash flows, receivables, all current assets of the project and project agreements/ project escrow account and project DSRA of the free sale area and 1st charge by way of mortgage of development rights. Repayable in 16 quarterly installments of Rs. 938.00 lacs each commencing from September, 2017. Interest rate is base rate 3.00 % p.a. payable monthly.

All the above loans are secured by immovable properties admeasuring 2,91,610 Sq. mtrs. situated at Village Kopri, District Thane, comprising of various survey numbers, owned by Privilege Power and Infrastructure Private Limited, a wholly owned subsidiary of the Company.

c) Allahabad Bank :-

i) Secured by registered mortgage over the total construction area of 1,12,140.10 Sq. mtrs. which includes free sale area admeasuring approximately 67,732.72 Sq. mtrs. at CTS no. 551/27,552(pt), 552/1, 552/5 to 12 of Village Nahur, Mumbai together with the structure standing thereon and further secured by 45,342 Sq. mtrs. of immovable properties situated at Village Chandansar, Dist. Thane, comprising of various survey numbers, owned by Privilege Power and Infrastructure Private Limited, a wholly owned subsidiary of the Company. Repayable in 12 equal quarterly installments of Rs. 1,250.00 lacs each commencing from June, 2014. Rate of Interest base rate 5% p.a. payable monthly.

ii) Secured by exclusive charge on Escrow account as well as equitable mortgage of immovable properties admeasuring 54,970 Sq.mtrs at Village Maljipada, Dist. - Thane, comprising of various survey numbers. Repayable within 12 equal quarterly installments of Rs. 625.00 lacs each commencing from December 2014. Rate of interest is base rate 5% p.a. payable monthly.

iii) Secured by exclusive charge on all projects assets of the Company at Mulund and Palghar. Repayable in 4 equal quarterly installments of Rs. 425.00 lacs each commencing from March, 2017. Rate of interest is base rate 5% p.a. payable monthly.

d) syndicate Bank :-

Secured by pari passu charge over escrow of Cash flows arising out of the project Whispering Tower and further secured by immovable properties admeasuring 87,220 Sq.mtrs. situated at Village Doliv, Koshimbe, Dist. Thane, comprising of various survey numbers, owned by Privilege Power and Infrastructure Private Limited, a wholly owned subsidiary of the Company. Repayable in 12 equal quarterly installments Rs. 834.00 lacs each commencing from February 2015. Rate of Interest base rate 3% p.a. payable monthly.

e) Yes Bank Limited:-

Secured by exclusive charge by way of registered mortgage on the four multiplexes having built - up area of 89,173.68 sq. ft. Repayable in 180 monthly installments comprising of Rs. 41.67 lacs for first three months and Rs. 49.59 lacs per months for balance period commencing from April, 2015.

III) Term Loans from Financial Institution :-

a) IL & Fs - PMDo:-

i) Repayable in 18 quarterly installments of the staggered amount commencing from October, 2015. Rate of interest is 13.50% p.a. payable monthly.

ii) Repayable in 12 quarterly installments commencing from February, 2016. Rate of interest of the Funded interest term loan is 13.50% p.a. payable monthly.

Both the loans are secured by registered mortgage of immovable properties admeasuring 1,21,970 Sq. mtrs. situated at Sasunavghar, comprising of various survey numbers, owned by the Company and 96,750 Sq. mtrs. situated at village Doliv, 1,60,390 Sq. mtrs. situated at village Khardi, 94,710 Sq. mtrs. situated at Dahisar and 66,640 Sq. mtrs. situated at Kasarali, comprising of various survey numbers, owned by Privilege Power and Infrastructure Private Limited, a wholly owned subsidiary of the Company.

b) Life Insurance Corporation of India :-

i) Term loan is secured by registered mortgage of immovable properties situated at Village Doliv and Village Khardi admeasuring 2,88,940 Sq. mtrs. comprising of various survey numbers and further secured by mortgage of first to nine floors except 3rd, 4th and 6th floors of commercial building area admeasuring 18,194.54 Sq. mtrs. situated at HDIL Towers, Bandra (East), Mumbai. Repayable in 12 quarterly installments of Rs. 1688.15 lacs each commencing from September, 2016. Rate of interest is 13% p.a. payable monthly.

ii) Securities of the Term loan from Life Insurance Corporation of India are shared on pari-passu basis along with the security for Non Convertible Debentures issued to Life Insurance Corporation of India. (Also refer to Note No. : 4 (I)(b)).

IV) All the above loans have been personally guaranteed by

i) Executive Chairman of the Company

ii) Vice Chairman and Managing Director of the Company

1. related party disclosure

A. List of related parties with whom transactions have taken place during the current accounting year and relationship: Wholly owned subsidiary

Privilege Power and Infrastructure Private Limited 100%

HDIL Entertainment Private Limited (upto 03.07.2014) 100%

Blue Star Realtors Private Limited 100%

Guruashish Construction Private Limited 100%

Excel Arcade Private Limited 100%

Mazda Estates Private Limited 100%

other subsidiary

Ravijyot Finance and Leasing Private Limited 60%

BKC Developers Private Limited 99%

Lashkaria Construction Private Limited 69%

HC Infracity Private Limited 75%

Enterprise significantly influenced by key management personnel Privilege Airways Private Limited Joint Venture Fine Developers

Heritage Housing Development Corporation Key management personnel name Designation

Shri Darshan D. Majmudar Chief Financial Officer and Company Secretary

2. COMMITMENTS

Estimated amount of contracts remaining to be executed on capital account and not - - provided for (net of advances and deposits)

3. NATURE OF OPERATIONS: -

Housing Development and Infrastructure Limited (HDIL) is a leading real estate and infrastructure development Company.

4. Previous year figures have been reclassified to conform to this year''s classification.1

A Building Management System (BMS) or a (more recent terminology) Building Automation System (BAS);

- Energy Efficiency System;

- Insulation;

- Multipane Windows, Window Treatment and Storm Doors, UPVC Doors / Windows etc.;


Mar 31, 2015

1. Terms/rights attached to shares :

The Company has only one class of shares i.e. equity shares of Rs. 10/- each. Shareholders are entitled to vote in accordance with their shareholding in the Company and receive dividend as and when declared by the Company.

2. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholder.

3. Details of securities and other terms and conditions are as under

I) Secured Redeemable Non-Convertible Debentures : -

a) Secured Redeemable Non-Convertible Debentures (Listed) : -

13,975 (Previous year 14,475) 12% Secured Redeemable Non-Convertible Debentures of Rs. 10.00 lacs each fully paid, interest payable quarterly are issued on Private Placement basis to various banks. These Debentures are Secured by mortgage of immovable properties admeasuring about 7,01,992 Sq. mtrs. situated at village Kasarali, District Thane and 1,47,142.47 Sq. mtrs. situated at Village Kopri, District Thane, owned by Privilege Power and Infrastructure Private Limited, a wholly owned subsidiary of the Company. These Secured Non-Convertible Debentures are redeemable commencing from December, 2012 from first tranche onwards at 33% each in third and fourth year and 34% at the end of fifth year.

b) Secured Redeemable Non-Convertible Debentures (Non-listed) : -

a) 2,267 (Previous year 2,267)13.25% Secured Redeemable Non-Convertible Debentures of Rs. 10.00 lacs each fully paid, interest payable monthly are issued on Private Placement basis to Life Insurance Corporation of India. The Debentures are secured by mortgage of 2,88,940 Sq. mtrs immovable properties situated at Village Doliv and Village Khardi, District Thane and further secured by mortgage of first to nine floors except 3rd, 4th and 6th floors of commercial building admeasuring 17,894.65 Sq. mtrs. situated at HDIL Towers, Survey No. 341(pt) CTS No. 608(pt), Bandra (East), Mumbai. These Secured Non-Convertible Debentures are redeemable in equal monthly instalment of Rs. 100.00 lacs each commencing from 5th October, 2013.

b) Securities of the Debentures issued to Life Insurance Corporation of India are shared onpari-passu basis for the term loan from Life Insurance Corporation of India. (Also refer note : 7(III)(b))

4. All the above debentures have been personally guaranteed by

i) Executive Chairman of the Company

ii) Vice Chairman and Managing Director of the Company

5. IDBI Trustee is the trustee to all the above Debentures issued.

Details of securities and other terms and conditions are as under

6. Loans repayable on demand from Scheduled Bank :- Punjab and Maharashtra Co-operative Bank Limited :-

Secured by pledge of fixed deposit receipts with the bank, current rate of interest 9% for Rs. 61.00 lacs, 10.75% for Rs. 382.00 lacs and 11% for Rs. 6,289.00 lacs. (Previous year 10% for Rs. 69.12 lacs, 10.75% for Rs. 9,712.53 lacs and 11% for Rs. 60.85 lacs).

7. Loans from Scheduled Banks :-

a) Central Bank of India :-

i) Secured by registered mortgage of immovable properties admeasuring 40,468.56 Sq. mtrs. situated at CTS No. 637A, Premier Road, Village Kurla, Mumbai. Repayable in 40 monthly installments (Step up installments) of Rs. 300.00 lacs each commencing from December, 2013 to March 2014, Rs. 349.00 lacs each commencing from April, 2014 to March 2015 and Rs. 500.00 lacs each commencing from April, 2015 to March 2017. Rate of interest base rate 5 % p.a. payable monthly.

ii) Secured by future rent receivable in favour of bank and further secured by registered mortgage of immovable property admeasuring 2,915.68 Sq. mtrs. comprising six screen Multiplex situated at a part portion of the 2nd floor, commercial building no. 2, Dreams Mall, on land bearing CTS Nos. 642, 642/1 to 642/29, CTS no.654 of village Kanjur and CTS 426 of village Bhandup, Mumbai suburban district. Repayable in 33 monthly installments of Rs. 72.60 lacs each (Principal and Interest) commencing from December, 2013. Rate of interest base rate 5% p.a. payable monthly.

b) Punjab and Sind Bank :-

Secured by exclusive charge on B and D Wings out of A, B, C and D wings, equivalent to 62,755.48 Sq. mtrs. of area of the building named as Majestic Tower, at Village Nahur, Mumbai, on the Plot of CTS 300/ A-1 and 1021/B of Village Bhandup and CTS No. 771 of Village Nahur, Mumbai. Collateral security is provided by registered mortgage on land situated at Chandansar, Thane admeasuring 1,52,955 Sq. mtrs owned by Privilege Power and Infrastructure Private Limited, a wholly owned subsidiary of the Company. Repayable in 36 monthly installments of Rs. 347.22 lacs each commencing from September 2012. Rate of Interest base rate 5% p.a. payable monthly.

c) The Jammu and Kashmir Bank :-

i) Term loan - I - Secured by cash flow arising out of the project and land situated at Vasai Virar region. Repayable in 12 quarterly installments of Rs. 834.00 lacs each commencing from September 2014. Interest rate is base rate 3.50% p.a. payable monthly.

ii) Term Loan - II - Secured by 1st Charge on the cash flows, receivables and project agreements/ project escrow account and project DSRA of the free sale area, and 1st charge by way of mortgage of development right. Loan repayable in 20 quarterly installments of ' 750.00 lacs each commencing from September 2016. Interest rate is base rate 3.00% p.a. payable monthly.

iii) Term Loan - III - Secured by 1st Charge on the cash flows, receivables, all current assets of the project and project agreements/ project escrow account and project DSRA of the free sale area and 1st charge by way of mortgage of development rights. Repayable in 16 quarterly installments of Rs. 938.00 lacs each commencing from September, 2017. Interest rate is base rate 3.00 % p.a. payable monthly.

All the above loans are secured by immovable properties admeasuring 2,91,610 Sq. mtrs. situated at Village Kopri, District Thane, comprising of various survey numbers, owned by Privilege Power and Infrastructure Private Limited, a wholly owned subsidiary of the Company.

d) Oriental Bank of Commerce

Secured by exclusive charge on A and C Wings out of A, B, C and D wings, equivalent to 62,755.48 Sq. mtrs. of area of the building named as Majestic Tower, at Nahur, Mumbai, on the Plot of CTS 300/ A-1 and 1021/B of Village Bhandup and CTS No. 771 of Village Nahur, Mumbai. Repayable in 36 monthly installments of Rs. 347.22 lacs each commencing from August 2012. Rate of Interest base rate 5.50% p.a. payable monthly.

e) Allahabad Bank :-

i) Term Loan - I - Secured by registered mortgage over the total construction area of 1,12,140.10 Sq. mtrs. which includes free sale area admeasuring approximately 67,732.72 Sq. mtrs. at CTS no. 551/27,552(pt), 552/1, 552/5 to 12 of Village Nahur, Mumbai together with the structure standing thereon and further secured by 45,342 Sq. mtrs. of immovable properties situated at Village Chandansar, Dist. Thane, comprising of various survey numbers, owned by Privilege Power and Infrastructure Private Limited, a wholly owned subsidiary of the Company. Repayable in 12 equal quarterly installments of Rs. 1,250.00 lacs each commencing from June 2014. Rate of Interest base rate 5% p.a. payable monthly.

ii) Term Loan - II - Secured by exclusive charge on Escrow account as well as equitable mortgage of immovable properties admeasuring 54,970 Sq.mtrs at Village Maljipada, Dist. - Thane, comprising of various survey numbers. Repayable within 12 equal quarterly installments of Rs. 625.00 lacs each commencing from December 2014. Rate of interest is base rate 5% p.a. payable monthly.

iii) Term Loan - III- Secured by exclusive charge on all projects assets of the Company at Mulund and Palghar. Repayable in 4 equal quarterly installments of Rs. 425.00 lacs each commencing from March 2017. Rate of interest is base rate 5% p.a. payable monthly.

f) Syndicate Bank :-

Secured by pari passu charge over escrow of Cash flows arising out of the project Whispering Tower and further secured by immovable properties admeasuring 87,620 Sq.mtrs. situated at Village Doliv, Koshimbe, Dist. Thane, comprising of various survey numbers, owned by Privilege Power and Infrastructure Private Limited, a wholly owned subsidiary of the Company. Repayable in 12 equal quarterly installments Rs. 834.00 lacs each commencing from February 2015. Rate of Interest base rate 3% p.a. payable monthly.

g) Yes Bank Limited:-

Secured by exclusive charge by way of registered mortgage on the four multiplexes having built-up area of 89,173.68 Sq. ft. Repayable in 180 equated monthly installments comprising of Rs. 41.67 lacs for first three months and Rs. 49.59 lacs per months for balance period commencing from April, 2015.

8. Term Loans from Financial Institution :-

a) IL and FS - PMDO :-

i) Repayable in 18 quarterly installments of the staggered amount commencing from October, 2015. Rate of interest is 13.50% p.a. payable monthly.

ii) Repayable in 12 quarterly installments commencing from February, 2016. Rate of interest of the Funded interest term loan is 13.50% p.a. payable monthly.

Both the loans are secured by registered mortgage of immovable properties admeasuring 1,21,850.95 Sq. mtrs. situated at Sasunavghar, comprising of various survey numbers, owned by the Company and 3,07,561.36 Sq. mtrs. situated at Village Doliv and at Village Khardi, 95,101.20 Sq. mtrs. situated at Dahisar and 12,140.58 Sq. mtrs. situated at Kasarali, comprising of various survey numbers, owned by Privilege Power and Infrastructure Private Limited, a wholly owned subsidiary of the Company.

b) Life Insurance Corporation of India:

i) Term loan is secured by registered mortgage of immovable properties situated at Village Doliv and Village Khardi admeasuring 2,88,940 Sq. mtrs. comprising of various survey numbers and further secured by mortgage of first to nine floors except 3rd, 4th and 6th floors of commercial building area admeasuring 17,894.65 Sq. mtrs. situated at HDIL Towers, Bandra (East), Mumbai. Repayable in 12 quarterly installments of Rs. 1,688.15 lacs each commencing from September, 2016. Rate of interest is 13% p.a. payable monthly.

ii) Securities of the Term loan from Life Insurance Corporation of India are shared on pari-passu basis along with the security for Non Convertible Debentures issued to Life Insurance Corporation of India. (Also refer to Note No. : 4 (I)(b)).

9. All the above loans have been personally guaranteed by

i) Executive Chairman of the Company

ii) Vice Chairman and Managing Director of the Company

10. RELATED PARTY DISCLOSURE

A. List of related parties with whom transactions have taken place during the current accounting year and relationship: Wholly owned subsidiary

Privilege Power and Infrastructure Private Limited 100%

HDIL Entertainment Private Limited (upto 03.07.2014) 100%

Blue Star Realtors Private Limited 100%

Guruashish Construction Private Limited 100%

Excel Arcade Private Limited 100%

Mazda Estates Private Limited 100%

Other subsidiary

Ravijyot Finance and Leasing Private Limited 60%

BKC Developers Private Limited 99%

Lashkaria Construction Private Limited 69%

HC Infracity Private Limited 75%

Associates

HDIL Leisures Private Limited (upto 11/03/2014)

Enterprise significantly influenced by key management personnel

Privilege Airways Private Limited Joint Venture

Fine Developers

Heritage Housing Development Corporation Key management personnel

Name Designation

Shri Darshan D. Majmudar Chief Financial Officer and Company Secretary

Particulars As at As at 31st March, 31st March, 2015 2014

11.CONTINGENT LIABILITIES NOT PROVIDED FOR

a) (i) Claims against the Company 35,839.22 50,056.00 not acknowledged as debts (represents suits filed by the parties in the Court, and disputed by the Company)

(ii) Income-tax demands disputed by the Company (net of amounts provided) 13,287.67 13,287.67

b) Guarantees provided by the bank * 656.20 646.20

Includes Bank Guarantee of Rs. 10.00 lacs (previous year Nil) to Pollution Control Board, Lucknow on behalf of the HC Infracity Private Limited a subsidiary of the Company

c) Corporate guarantee

(i) The Company has provided an undertaking to pay in the event of default on loans given by Banks to following subsidiary Companies

Guruashish Construction Private Limited 21,500.00 21,500.00

Privilege Power and Infrastructure Private Limited 75,600.00 75,600.00

(ii) The Company has facilitated a vendor financing, setting up with IDBI bank limit 5,000.00 5,000.00

upto Rs. 5,000.00 lacs. The Company has extended its corporate guarantee to the IDBI bank.

12. COMMITMENTS

Estimated amount of contracts remaining to be executed on capital account and not - 63.90

provided for (net of advances and deposits)

13. NATURE OF OPERATIONS:

Housing Development and Infrastructure Limited (HDIL) is a leading real estate and infrastructure development Company.

14. Previous year figures have been reclassified to conform to this year's classification.


Mar 31, 2014

(Rs. in Lacs)

Particulars As at As at 31st March, 2014 31st March, 2013

1. CONTINGENT LIABILITIES NOT PROVIDED FOR

a) (i) Claims against the Company not acknowledged as debts (represents 50,056.00 23,077.61 suits filed by the parties in the Court, and disputed by the Company)

(ii) The Mumbai International Airport Limited has issued notice of termination - 27,600.00 dated 6th February, 2013 on the Company of their agreement for Mumbai International Airport Slum Rehabilitation Project. The Company has challenged the said notice of termination and have initiated legal proceedings as per advice of legal counsel. Subsequent to notice of termination of the agreement, the Company may be held liable to pay liquidated damages aggregating to Rs. 27,600.00 lacs.

(iii) Income-tax demands disputed by the Company (net of amounts provided) 13,287.67 23,908.97

b) Guarantees provided by the bank 646.20 646.20

c) Corporate guarantee

(i) The Company has provided an undertaking to pay in the event of default on loans given by Banks to following subsidiary Companies Guru Ashish Construction Private Limited 21,500.00 21,500.00

Privilege Power and Infrastructure Private Limited 75,600.00 50,000.00

(ii) The Company has facilitated a vendor financing, setting up with IDBI Bank 5,000.00 5,000.00 limit upto Rs. 5,000.00 lacs. The Company has extended it''s corporate guarantee to the bank.

2. NATURE OF OPERATIONS

Housing Development and Infrastructure Limited (HDIL) is a leading real estate and infrastructure development company. Besides core activities of construction, subsidiary of HDIL is also involved in Entertainment sector.

3. Previous year figures have been reclassified to conform to this year''s classification.


Mar 31, 2013

1.1 Assets taken on lease:

a) General description of leasing arrangement

i) Leased assets: Residential and Commercial Premises ii) Future lease rentals are determined on the basis of agreed terms.

iii) At the expiry of the lease term, the Company agrees to record the new terms and condition of their agreement in relation to lease of the Premises.

b) Total operating lease expenses debited to the Statement of Profit and Loss Rs. 45.81 lacs (previous year Rs. 49.10 lacs)

2. RELATED PARTY DISCLOSURE

A. List of related parties with whom transactions have taken place during the current accounting year and relationship: Subsidiaries

1. Privilege Power and Infrastructure Private Limited

2. HDIL Entertainment Private Limited

3. Blue Star Realtors Private Limited

4. Ravijyot Finance and Leasing Private Limited

5. Excel Arcade Private Limited

6. Mazda Estates Private Limited

7. Guruashish Construction Private Limited

8. BKC Developers Private Limited

9. Lashkaria Construction Private Limited

10. HC Infracity Private Limited Associates

1. HDIL Leisures Private Limited

Enterprise significantly influenced by key management personnel

1. Privilege Airways Private Limited

2. Privilege Industries Limited

3. Privilege Health Care Services Private Limited Joint Venture

1. Fine Developers

2. Heritage Housing Development Corporation Relative of promoter of the Company

1. Shri Sunpreet Singh

3. Income tax Assessment have been completed upto Financial year 2009-2010. The tax liability of Rs. 30,287.42 lacs for the Financial year from 2005-06 to 2009-10 has been determined against the Company. Company has preferred appeals before the Income-tax Appellate Tribunal (ITAT), Mumbai. Against the said demand, the Company has paid a sum of Rs. 6,253.16 lacs under protest.

4. NATURE OF OPERATIONS:

Housing Development and Infrastructure Limited (HDIL) is a leading real estate and infrastructure development Company. Besides core activities of construction, subsidiary of HDIL is also involved in Entertainment sector.

5. Previous year figures have been reclassified to conform to this year''s classification.


Mar 31, 2012

Terms/rights attached to shares :

The Company has only one class of shares i.e. equity shares of Rs 10/- each. Shareholders are entitled to vote in accordance with their shareholding in the Company and receive dividend as and when declared by the Company.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferencial amounts. The distribution will be in proportion to the number of equity shares held by the shareholder.

Details of securities provided:

i) secured redeemable Non-Convertible debentures:-

a) secured redeemable non-Convertible debentures (Listed):-

i) 11,500 (11,500) Secured Redeemable Non-Convertible Debentures of Rs 10.00 lacs each fully paid carrying interest at the rate of 12% p.a. payable quarterly are issued on Private Placement basis to various banks. Secured by Non-agricultural Land admeasuring to about 173.40 acres i.e. 7,01,992 Sq. mtrs. situated at village Kasarali, Taluka Vasai, District Thane which is owned by Privilege Power and Infrastructure Private Limited, a wholly owned subsidiary of the Company. These Secured Non-Convertible Debentures are redeemable commencing from December, 2012 onwards at 33% each in third and fourth year and 34% at the end of fifth year.

ii) 5,175 (4,250) Secured Redeemable Non-Convertible Debentures of Rs 10.00 lacs each fully paid carrying interest at the rate of 12% p.a. payable quarterly are issued on Private Placement basis to various banks. Secured by Non-agricultural Land admeasuring to about 36.36 acres situated at Village Kopri, Taluka Vasai, District Thane which is owned by Privilege Power and Infrastructure Private Limited a wholly owned subsidiary, of the Company. These Secured Non-Convertible Debentures are redeemable commencing from March, 2013 onwards at 33% each in third and fourth year and 34% at the end of fifth year.

b) secured redeemable non Convertible debentures (non listed) : -

i) a) 2,267 (4,168) Secured Redeemable Non-Convertible Debentures of Rs 10.00 lacs each fully paid carrying interest with a floor of 13.25% p.a. payable monthly are issued on Private Placement basis to Life Insurance Corporation of India. The debentures are secured by 2,88,940 Sq. mtrs Non-agricultural land situated at Village Doliv and Village Khardi, Vasai, District Thane and further secured by mortgage of first to nine floors except 3rd, 4th and 6th floors of commercial building area admeasuring 1,95,846 Sq. ft. situated at HDIL Towers, Bandra (East), Mumbai. As per the revised terms of the Debentures, these Secured Non- Convertible Debentures are redeemable in equal monthly installment of Rs 1,000 lacs commencing from 1st September, 2012.

b) Securities of the debentures issued to Life Insurance Corporation of India are shared on pari-passu basis for the term loan from Life Insurance Corporation of India.

ii) 500 (500) out of the total issue size of 2000, Secured Redeemable Non- Convertible Debentures of Rs 10.00 lacs each fully paid carrying interest @ 11.50% p.a. payable quarterly are issued on Private Placement basis to Bank of India. Secured by registered mortgage of Land admeasuring 395.24 Sq. mtrs. situated at survey no. 255 (comprising of old survey no. 255 and 256/03), mauje Maharajpura, Taluka Kadi, Mehsana, Gujarat. As per the revised terms of the Debentures these Secured Non-Convertible Debentures are redeemable in fortnightly installment of Rs 500 lacs each commencing from June, 2012.

ii) All the above debentures have been personally guaranteed by executive Chairman and Vice Chairman & Managing director of the Company.

iii) IDBI trustee is the trustee to all the above debentures issued.

Details of securities provided:

I) Loans repayable on demand from Bank:-

punjab and Maharashtra Co-operative Bank Limited:-

Secured by pledge of fixed deposit receipts with the bank, current rate of interest 10%p.a.

II) Loans from scheduled Banks:-

a) Bank of India :-

Secured by registered mortgage of free sale component to be generated on the piece and parcel of Land bearing survey No. 236A and 194 (pt) admeasuring about 18,199.08 sq. mtrs. on the property situated at Ghatkopar (East) together with buildings constructed or to be constructed thereon. The term loan repayable in 48 equal monthly installment of Rs 208.35 lacs commencing from April, 2011. The rate of interest is BPLR 0.75% p.a.

b) Central Bank of India :-

Secured by registered mortgage of property admeasuring 10 acres situated at Premier Road, Off. LBS Marg, in Greater Mumbai, Village Kurla, Taluka Kurla, Mumbai. Rate of interest BPLR 0.50% payable monthly. Repayable in 12 equal bi-monthly installment of Rs 2,500 lacs each commencing from June, 2011.

c) punjab national Bank:-

i) Secured by equitable mortgage of land admeasuring 2,50,015 sq.mtrs. at Village Shirgaon, Chandansar Road, Virar (E), Taluka Vasai, District Thane. Rate of interest is BPLR TP 1.50%. Repayment in 12 quarterly installment of Rs 1,666.67 lacs each from July, 2010.

ii) Secured by pari passu charge on registered mortgage of all the rights in Land admeasuring 15,554.55 Sq. mtrs. bearing CTS No. 866B (1) at Village Ambivali, Taluka Andheri, Mumbai Suburban District as well as FSI pertaining to the plot of land bearing CTS 866-A admeasuring 93,327.40 sq. mtrs and right to TDR of the entire layout of 1,24,436.50 sq. mtrs. Rate of interest is BPLR TP 3%. Repayment in 12 quarterly installment of Rs 2,083.33 lacs each from 18th June, 2010.

d) punjab and sind Bank:-

i) Secured by 1,52,955 sq. mtrs. of non-agricultural plot of Land situated at Village Chandansar, Virar (E) owned by Privilege Power and Infrastructure Private Limited, a wholly owned subsidiary of the Company carrying interest at BPLR 0.25% TP RP payable monthly. Repayment in 36 equal monthly installment of Rs 277.78 lacs each from August, 2009.

ii) Secured by exclusive charge on B & D Wings out of A, B, C & D wings, equivalent to 6,75,500 sq. ft. of saleable area of the building Majestic Tower, at Village Nahur, Mulund, Mumbai, on the Plot of CTS 300/ A-1 and 1021/B of Village Bhandup and CTS No. 771 of Village Nahur, Mulund, Mumbai. Rate of Interest PLR 1% payable monthly. Repayable in 36 monthly installment of Rs 347.22 lacs each after moratorium of 24 months from the date of first disbursement.

e) the Jammu and Kashmir Bank :-

Secured by mortgage of Land situated at village Kopri, Virar (East) Taluka Vasai, District Thane admeasuring 2,91,610 sq mtrs. Interest rate is Base rate 3.50%. Repayable in 12 quarterly installment of Rs 834 lacs each after moratorium of two years from first disbursement.

f) uco Bank :-

Secured by pari-passu charge on registered mortgage of all the rights in land admeasuring 15,554.55 sq. mtrs. bearing CTS No. 866B (1) at Village Ambivali, Taluka Andheri, Mumbai Suburban District as well as FSI pertaining to the plot of land bearing CTS 866-A admeasuring 93,327.40 sq.mtrs and right to TDR of the entire layout of 1,24,436.50 Sq.mtrs. Rate of interest BPLR 0.50% with monthly rests. Repayable in 16 quarterly installment of Rs 1,563 lacs each after moratorium of 12 months from the date of first disbursement.

g) oriental Bank of Commerce:-

Secured by exclusive charge on A & C Wings out of A, B, C & D wings, equivalent to 6,75,500 sq. ft. of saleable area of the building Majestic tower, at Nahur, Mulund, Mumbai, on the Plot of CTS 300/ A-1 and 1021/B of Village Bhandup and CTS No. 771 of Village Nahur, Mulund, Mumbai. Rate of Interest PLR 1% payable monthly. Repayable in 36 monthly installment of Rs 347.22 lacs each after moratorium of 24 months from the date of first disbursement.

h) allahabad Bank:-

i) Secured by registered mortgage over the total construction area of 12,07,076 sq. ft. which includes free sale area admeasuring approximately 7,29,075 sq. ft. at CTS No. 551/27, 552(pt), 552/1, 552/5 to 12 of Village Nahur, Taluka Kurla, 'T' ward, Mumbai together with the structure standing thereon and further secured by 45,202 sq. mtrs. of Non- agricultural Land situated at Village Chandansar, Taluka Vasai, Dist. Thane, comprising of various survey numbers, owned by Privilege Power and Infrastructure Private Limited, a wholly owned subsidiary of the Company. Rate of Interest base rate 5% payable monthly. Repayable in 12 equal quarterly installments of Rs 1,250.00 lacs each after moratorium of 24 months from the date of first disbursement.

ii) Secured by exclusive charge on Escrow account as well as equitable mortgage of land admeasuring 54,970 sq.mtrs at Village Maljipada, Taluka Vasai, Dist. - Thane, comprising of various survey numbers. Rate of interest is base rate 5% p.a. Repayable within 12 equal quarterly installments of Rs 625.00 lacs each after a moratorium of 24 months from first disbursement.

i) syndicate Bank :-

Secured by pari passu charge over escrow of Cash flows arising out of the project Whispering Tower and further secured by Non-agricultural Land situated at Village Doliv,Virar, admeasuring 21.65 acres owned by Privilege Power and Infrastructure Private Limited, a wholly owned subsidiary of the Company. Rate of Interest base rate 3% payable monthly. Repayable in 12 equal quarterly installments of Rs 834.00 lacs each after moratorium of 24 months from the date of first disbursement.

III) Term Loans from Financial Institution:-

a) IL & Fs:-

Secured by registered mortgage of immovable properties admeasuring 132.61 acres situated at Village Doliv, Khardi - 76 acres, Dahisar - 23.5 acres, Sasunavghar - 30.11 acres and Kasarali - 3 acres, owned by Privilege Power and Infrastructure Private Limited, a wholly owned subsidiary of the Company. Rate of interest is 12.50% payable monthly. Repayment in 20 quarterly installment of Rs 1,977.45 lacs each commencing from August, 2012.

b) Life Insurance Corporation of India:-

i) Term loan is secured by registered mortgage of property situated at Village Doliv and Village Khardi admeasuring 2,88,940 Sq. mtrs. and further secured by mortgage of first to nine floors except 3rd, 4th and 6th floors of commercial building area admeasuring 1,95,846 Sq. ft. situated at HDIL Towers, Bandra (East), Mumbai. Rate of interest is 13% p.a. payable monthly. Repayment by 19 quarterly installment of Rs 1,500.00 lacs each from November, 2010.

ii) Securities of the Term loan from Life Insurance Corporation of India are shared on pari passu basis along with the security for debentures issued to Life Insurance Corporation of India.

2. contingent liabilities not provided for

a) (i) Claims against the Company not acknowledged as debts 20,247.35 20,247.35 (represented suits filed by the parties in the High Court, Bombay and disputed by the Company)

(ii) Income-tax demands disputed by the Company (net of amounts 28,564.58 - provided).

The matters in dispute are under appeal. The demands have been paid/adjusted and will be received as refund if the matters are decided in favour of the Company.

In the opinion of the management the above claims are not sustainable.

b) Guarantees provided by the bank 3,034.20 3,024.20

c) Against demand promissory note executed as security for performance 27,500.00 27,500.00

a) Gratuity plan:-

I) The AS-15 stipulates that the rate used to discount post employment benefit obligation (both funded and non-funded) should be determined by reference to market yields at the Balance Sheet date on government bonds. The currency and terms of the government bonds should be consistent with the currency and estimated terms of the post-employment benefit obligation.

II) Estimated future salary increases take account of inflation, seniority, promotion and other retirement factors, such as supply and demand in the employment market.

B) Leave encashment liability :-

I) The AS-15 stipulates that the rate used to discount post employment benefit obligation (both funded and non-funded) should be determined by reference to market yields at the Balance Sheet date on government bonds. The currency and terms of the government bonds should be consistent with the currency and estimated terms of the post- employment benefit obligation.

II) Estimated future salary increases take account of inflation, seniority, promotion and other retirement factors, such as supply and demand in the employment market.

* The Directors remuneration includes salary paid Rs 150 lacs to Executive Chairman and Vice Chairman and Managing Director for only one month. They have voluntarily forgone the remuneration for eleven months. The non-executive Directors have also voluntary forgone their commission by 50% of the entitlement.

3. LEASE

A) Assets given on lease:

a) General description of leasing arrangement

i) Leased assets: Leasing of commercial premises.

ii) Future lease rentals are determined on the basis of agreed terms.

iii) At the expiry of the lease term, the Company agrees to record the new terms and condition of their agreement in relation to lease of the Premises.

b) Lease payment received or receivable for the year is recognised in the Statement of Profit and Loss Rs 1,359.96 lacs. (Previous year Rs 1,850.17 lacs)

B) Assets taken on lease:

a) General description of leasing arrangement

i) Leased assets: Residential premises.

ii) Future lease rentals are determined on the basis of agreed terms.

iii) At the expiry of the lease term, the Company agrees to record the new terms and condition of their agreement in relation to lease of the Premises.

b) Lease payment paid or payable for the period is recognised in the Statement of Profit and Loss Rs 30.56 lacs. (previous year Rs 29.97 lacs)

4. related party disclosure

- List of related parties with whom transactions have taken place during the current accounting year and relationship: Subsidiaries

1. Privilege Power and Infrastructure Private Limited

2. HDIL Entertainment Private Limited

3. Blue Star Realtors Private Limited

4. Ravijyot Finance & Leasing Private Limited

5. Excel Arcade Private Limited

- Mazda Estates Private Limited

7. HDIL Commercial Properties Private Limited (upto 30.06.2011)

8. Guruashish Construction Private Limited

9. BKC Developers Private Limited

10. Lashkaria Construction Private Limited

11. HC Infracity Private Limited w.e.f. 30.11.2011

Associates

1. HDIL Leisures Private Limited

Enterprise significantly influenced by key management personnel

1. Privilege Airways Private Limited

2. Privilege Industries Limited

3. Privilege Health Care Services Private Limited

5. 2,60,00,000 Share Warrants of Rs 275/- each were allotted to one of the Promoter, after obtaining the necessarry approval from share holders and relevant authorities, which entitled for conversion of each warrant into one equity share of Rs 10/- each at a premium of Rs 265/- within a period of 18 months from the date of allotment. During current year 40,00,000 warrants have been converted into equity shares of the Company. The remaining 2,20,00,000 warrants were forfeited since the right to exercise the conversion of warrants has not been exercises. The allotment money received on these warrants of Rs 15,219.96 lacs has been forfeited as per the guidelines applicable to the issue of warrants.

6. Income tax Assessment have been completed upto Assessment year 2010-11. The tax demand of Rs 34,114 lacs for the Assessment year 2005-06 to 2010-11 has been determined by the Income Tax authorities. Company has preferred appeals which are pending for final disposal.


Mar 31, 2010

1. Nature of operations:

Housing Development and Infrastructure Limited (HDIL) is a leading real estate and infrastructure development Company. Besides core activities of construction, subsidiaries of HDIL are also involved in Entertainment and Hospitality sector.

2. Related party disclosure:

A. List of related parties with whom transactions have taken place during the current accounting year and relationship:

Subsidiaries

Privilege Power and Infrastructure Private Limited

HDIL Entertainment Private Limited

Blue Star Realtors Private Limited

Ravijyot Finance & Leasing Private Limited

Excel Arcade Private Limited

Mazda Estate Private Limited

HDIL Leisure Private Limited

Guruashish Construction Private Limited

BKC Developers Private Limited

HDIL Oil and Gas Private Limited (Upto 22nd February, 2010)

3. Disclosure in respect of operating leases: Assets given on lease:

a) General description of leasing arrangement

i) Leased assets: Leasing of commercial premises. ii) Future lease rentals are determined on the basis of agreed terms.

iii) At the expiry of the lease term, the company agrees to record the new terms and condition of their agreement in relation to lease of the Premises.

b) Lease payment received or receivable for the year is recognised in the profit and loss account Rs. 2,064.27 lacs, (previous year Rs. 2,184.41 lacs)

4. Contingent Liabilities not provided for:

31-Mar-2O10 31-Mar-2009

(Rs. in lacs) (Rs. in lacs)

a) Claims against the Company not acknowledged as debts represented suits filed by the parties in the High Court, Bombay and disputed by the Company

(i) Relating to failure to handover multiplex premises NIL 3,737.79

(ii) Other matters 21,550.00 6,317.00

21,550.00 10,054.79 In the opinion of the management the above claims are not sustainable.

b) Guarantees provided by the bank 2,933.65 2,938.65

c) Against demand promissory note executed as security for performance 27,500.00 27,500.00

d) Corporate guarantee issued on b ehalf of wholly owned subsidiary Company 22,000.00 NIL



5. Licensed capacity, installed capacity, etc.

With regard to Clause 3(ii) of Part II of Schedule VI to the Companies Act, 1956, the Company is of the view that in respect of its real estate operations, the Company does not fall under the category of Clause 3(ii)(a) "Manufacturing Company" or Clause 3(ii)(b)

"Trading Company" or Clause 3(ii)(c) "Company rendering or supplying services", but falls under the category of "Other Companies" as given in Clause 3(ii)(e). As such, quantitative details of opening stock, purchases and closing stock are not required to be furnished.

6. In the opinion of the management, the value of current assets and loans and advances are not less than as stated, if realised in the ordinary course of business.

7. a) During the year Company has allotted to QIB 7,03,50,000 equity shares of Rs. 10/- each at premium of Rs. 230/- each and 2,60,00,000 share warrants of Rs. 240/- each were allotted to one of the promoter. Out of which 1,30,00,000 share warrants have been converted into equity shares of Rs. 10/- each at premium of Rs. 230/- each.

b) 1,30,00,000 outstanding share warrants are entitled for conversion into one equity share of Rs. 10/- each at a premium of Rs. 230/- per share at any time between six months to eighteen months from 2nd July, 2009 (date of allotment). The Company has received Rs. 60/- per share warrant being 25% of the exercise price.

8. Loan funds: Secured loans:

I) Term Loans from Banks:

a) Bank of India:

(I) Secured by registered mortgage of free sale component to be generated on the piece and parcel of land bearing survey No. 236A and 194 (pt) admeasuring about 18,199.08 sq. mtr. on the property situated at Ghatkopar (East) together with buildings constructed or to be constructed thereon. The term loan repayable in 48 equal monthly installment of Rs. 208.35 lacs commencing from April 2011. The rate of interest is BPLR + 0.75% p.a.

(II) The other term loan secured by hypothecation of construction materials, other movable assets and receivables of Airport Slum Rehabilitation Project as well as Non-agricultural land admeasuring 92,060 sq. mtrs. at Village Sasunavghar, Taluka Vasai. Repayable in 4 quarterly installment of Rs. 5,000 Lacs after moratorium of two years from first disbursement. Interest rate is BPLR.

b) Life Insurance Corporation of India:

Term loan is secured by registered mortgage of land admeasuring about 21,07,399 sq. ft. along with structures to be constructed thereon situated in Village Chandansar, Virar (East) Dist. Thane and land admeasuring about 22.50 acres at Kochi. Rate of interest is 13% p.a. payable monthly. Repayment by sixteen equal quarterly installment beginning from November, 2010.

c) Central Bank of India:

Secured by registered mortgage of property admeasuring 10 acres at Kurla. Rate of interest BPLR + 0.50% payable monthly. Repayable in 12 equal bi-monthly installment of Rs. 2,500 Lacs each commencing from June, 2011.

d) Punjab National Bank:

(I) Secured by equitable mortgage of land admeasuring 2,63,870 sq. mtrs. at village Dongre, Taluka Vasai, District Thane. Rate of interest is BPLR+TP+1.50%. Repayment in 12 monthly installment of Rs. 1,666.67 Lacs commencing from July, 2010.

(II) Secured by registered mortgage of all the rights of land admeasuring 15,554.54 sq.mtrs. bearing CTS No. 866B (A) at village Ambivali, Taluka Andheri, District Mumbai suburban as well as FSI pertaining to the plot of land bearing CTS 866-A admeasuring 93,327.4 sq. mtrs. Rate of interest is BPLR +TP +3%. Repayment in 12 quarterly installment commencing from 18th June, 2010.

e) Punjab and Sind Bank:

Secured by 1,52,955 sq. mtrs. of non-agricultural plots of land situated at Village Chandansar, Virar (E) owned by Privilege Power and Infrastructure Private Limited carrying interest at BPLR + 0.25% + TP + RP payable monthly. Repayment in 36 equal monthly installment of Rs. 277.78 Lacs commencing from July, 2009.

f) United Bank of India:

Secured by registered mortgage of land admeasuring 1,07,760 sq. mtrs. situated at Kopri (Chandansar), Virar East, Dist. Thane, owned by Privilege Power and Infrastructure Private Limited. Rate of interest BPLR + 150 basis points payable monthly. Repayable in 10 quarterly installment of Rs. 1,000 lacs each after moratorium of 6 months from the date of first disbursement.

g) The Jammu and Kashmir Bank:

Secured by registered mortgage of non-agricultural property of Privilege Power and Infrastructure Pvt. Ltd. admeasuring 2,31,490 sq. mtrs. situated at Kopri, Virar (E). Rate of interest PLR payable monthly. Repayable in 10 equal quarterly installments of Rs. 2,000 Lacs each. The first installment to commence after moratorium of 6 months from the date of first disbursement.

h) UCO Bank:

(I) Secured by registered mortgage of immovable property (non-agricultural) admeasuring 1,29,600 sq. mtrs. situated at Village Doliv, Taluka Vasai, Dist. Thane. Rate of interest BPLR + 0.75% payable monthly. Repayable in 10 quarterly installment of Rs. 2,000 Lacs each after moratorium of 6 months from the date of first disbursement.

(II) Secured by registered mortgage on proposed building located at CTS No. 866/B of village Ambivali, Versova, Andheri (West), Mumbai having a saleable area - Residential 10.77 Lacs sq. ft. and commercial area 12.05 Lacs sq. ft. total 22.82 Lacs sq. ft. Rate of interest BPLR + 0.50% with monthly rests. Repayable in 16 quarterly installment of Rs. 1,563 Lacs each after moratorium of 12 months from the date of first disbursement.

II) Term Loans from financial Institution: i) IL & FS:

Secured by registered mortgage of immovable properties admeasuring 132.61 acres situated at Village Doliv and Kharadi - 76 acres, Dahisar - 23.5 acres, Maljipada - 30.11 acres and Kasarali - 3 acres, owned by Privilege Power and Infrastructure Private Limited. Rate of interest is 12.50% payable monthly. Repayment in 20 quarterly installment commencing from August, 2012.

III) Secured Redeemable Non-Convertible Debentures (Listed):

i) 2500 (2500) Secured Redeemable Non-Convertible Debentures of Rs. 10,00,000/- each fully paid carrying interest rate of 11.75% p.a. payable monthly are issued on private placement basis to Life Insurance Corporation of India. The debentures are secured by 2,88,940 Sq. mtrs non-agricultural land situated at village Doliv and Village Kharadi, Vasai, District Thane. These Secured Non-Convertible Debentures are redeemable in eighteen equal monthly installment of Rs. 1,388.89 Lacs commencing from October, 2010.

ii) 3000 (3000) Secured Redeemable Non-Convertible Debentures of Rs. 10,00,000/- each fully paid carrying interest at the rate of 11.75% p.a. payable monthly are issued on private placement basis to Life Insurance Corporation of India. The debentures are secured by 2,88,940 sq. mtrs. non-agricultural land situated at village Dolive and Village Kharadi, Vasai, District Thane. These Secured Non-Convertible Debentures are redeemable in eighteen equal monthly installment of Rs. 1,666.67 Lacs commencing from October, 2010.

IV) Secured Redeemable Non-Convertible Debentures (Non-listed):

i) 1,000 (3,000) Secured Redeemable Non-Convertible Debentures of Rs. 10,00,000/- each fully paid carrying interest with a floor of 11.95% p.a. and upper cap of 12.25% p.a. payable monthly are issued on private placement basis to Life Insurance Corporation of India. Secured by registered mortgage of non-agricultural land admeasuring 3,195.82 sq. mtrs. situated at survey No. 37, mauje Ishwarpura, Taluka Radi, Mehsana and 2,88,940 sq. mtrs. non-agricultural land situated at village Dolive and Village Kharadi, Vasai, District Thane. These Secured Non-Convertible Debentures are redeemable in eighteen equal monthly installment of Rs. 1,666.67 Lacs commencing from October, 2010.

ii) 150 (150) Secured Redeemable Non-Convertible Debentures of Rs. 10,00,000/- each fully paid carrying interest @ 13.25% p.a. payable quarterly are issued on private placement basis to General Insurance Corporation. These Secured Non-Convertible Debentures are redeemable after 24 months from the date of allotment. Secured by registered first mortgage and charge on pari passu basis on commercial property located at commercial building No. 5 known as HDIL Towers, Bandra. These secured redeemable non-convertible debentures are redeemable on 22nd June, 2010.

iii) 400 (400) Secured Redeemable Non-Convertible Debentures of Rs. 10,00,000/- each fully paid carrying interest @ 13.25% p.a. payable monthly are issued on private placement basis to Punjab National Bank. Theses Secured Non-Convertible Debentures are redeemable after 24 months from the date of allotment. Secured by land admeasuring 3,477.20 sq. mtrs. situated at Village Kurla, Greater Mumbai. These secured redeemable non-convertible debentures are redeemable on 4th January, 2011.

iv) 12,750 (Nil) Secured Redeemable Non-Convertible Debentures of Rs. 10,00,000/- each fully paid carrying interest at the rate of 12% p.a. payable quarterly are issued on Private Placement basis to various banks. Secured by immovable property of 7,01,719.06 sq. mtrs. equivalent to 173.40 acres at village Kasarali, Taluka Vasai, District Thane which is owned by Privilege Power and Infrastructure Private Limited. These Secured Non-Convertible Debentures are redeemable at 33% in third and fourth year and 34% at the end of fifth year. These debentures will be listed at Bombay Stock exchange.

Note : i) All the above loans and debentures have been personally guaranteed by Executive Chairman and Managing Director of the Company.

ii) IDBI Trustee is trustee to all the Debentures issued.

iii) The debentures issued to Life Insurance Corporation of India are further secured by registered mortgage of first to nine floors except Ground, 3rd, 4th and 6th floors of commercial building known as HDIL Towers, Bandra (East), Mumbai.

9. Investment in Joint Ventures

M/s. D. S. Corporation: (Fixed Capital Rs. 1,00,000/-)

Share of profit - 45%, other partners and share of profit are (1) Prithvi Realtors & Hotels Pvt. Ltd. - 20%, (2) Sapphire Land Development Private Limited - 5%, (3) Awas Developers & Constructions Private Limited - 8%, (4) Emerald Realtors Private Limited - 8% (5) Serveall Constructions Private Limited - 8% and (6) Satyam Realtors Private Limited - 6%.

M/s. Fine Developers: (Fixed Capital Rs. Nil)

Share of profit - 90%, other partner and share of profit is Sapphire Land Developers Private Limited - 10%.

M/s. Mahul Construction Corporation:- (Fixed Capital Rs. 50,000/-)

Share of profit - 85%, other partners and share of profit (1) Shri Waryam Singh - 5%, (2) Shri Sarang Wadhawan - 5% and (3) Shri Sunpreet Singh - 5%

10. On 10th September, 2009 search and seizure action has been conducted by Income Tax department in the business premises of the Company as well as residential premises of the two directors. As a consequence thereof the Company has made a disclosure of Rs. 350 Crores under Section 132 (4) of Income Tax Act, 1961 as income of current financial year 2009-10. The said income as well as the probable tax liabilities are duly accounted for in accordance with the provisions of Income Tax Act, 1961.

11. Figures for the previous accounting year have been regrouped, rearranged, restated and reclassified wherever necessary. Accordingly, amounts and other disclosures for the previous accounting year are included as an integral part of the current accounting year financial statement and are to be read in relation to the amounts and other disclosures relating to the current accounting year.

 
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