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Notes to Accounts of IITL Projects Ltd.

Mar 31, 2015

Note :1

Corporate information

IITL Projects Limited, is engaged in real estate business, construction of residential complexes in the National Capital Region. It has acquired plots of land, on long term lease, under Builders Residential Scheme of Greater Noida Industrial Development Authority(GNIDA). Apart from constructing its own project, the Company is undertaking development of real estate projects through Special purpose vehicles(SPV). The company holds around 45% of the capital in each of the SPV. A total of four SPV are engaged in construction of the residential complexes. As of March 31, 2015, Industrial Investment Trust Limited (Parent Company) owned 71.74% of the Company''s equity share Capital and has the ability to control its operating and financial policies. The Company''s registered office is in Mumbai.

Note :2

(a) Reconciliation of the number of shares and amount outstanding at the beginning and at the end of the reporting period:

(i) Equity Shares

There is no movement in the number of shares and amount outstanding of Equity shares in current as well as previous year.

(ii) 12% Non Convertible Cumulative Redeemable Preference Shares

There is no movement in the number of shares and amount outstanding of Preference shares in current as well as previous year.

(b) Rights, preferences and restrictions attached to equity shares

The Company has only one class of equity shares having a par value of Rs. 10 per share. Each holder of equity shares is entitled to one vote per share. The dividend, if any, proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after payment of all claims/liabilities.

(c) Rights, preferences and restrictions attached to Preference shares

The holder of the Preference Shares shall be entitled to receive cumulative dividend @12% per annum from the date of allotment till the date of redemption. The Preference Shares shall rank for capital and dividend (including all dividends undeclared upto the commencement of winding up) and for repayment of capital in a winding up pari pasu inter se and in priority to the Equity Shares of the Company, but shall not confer any further or other right to participate either in profits or assets. The Preference Shares shall be redeemable at the end of seventh year from the date of allotment at the rate of Rs. 85/- per share (including redemption premium of Rs. 75/- per share). The Company shall have the option to redeem, all or any part thereof, of the said Preference Shares, in one or more tranches, at the rate of Rs. 65/- per share (including redemption premium of Rs. 55/- per share) at the end of third year and/or at the rate of Rs. 75/- per share (including redemption premium of Rs. 65/- per share) at the end of fifth year. Every Preference shareholder of the Company has the right to vote only on resolution placed before the General Meeting which directly affect the rights attached to his Preference Shares. [Refer Note 3.32]

Arrears of fixed cumulative dividends on preference shares as at 31 March, 2015 Rs. 20,797,801 (As at 31 March, 2014 10,389,156)

(d) Shares held by the holding company Equity

Out of total 4,990,900 (previous year 4,990,900) Equity shares, 3,580,347 (previous year 3,580,347) Equity shares are held by the holding company, Industrial Investment Trust Limited.

12% Non Convertible Cumulative Redeemable Preference Shares

All 7,000,000 preference shares (previous year 7,000,000) are held by the holding company, Industrial Investment Trust Limited.

Note :3

Contingent liabilities

(a) Contingent liabilities not provided for in respect of

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

Rs. Rs.

Disputed income-tax matters in appeal - 167,267

Disputed entry tax matter in appeal - 1,757,699

Few buyers of residential units have lodged a complaint during the year with the National Consumer Disputes Redressal Commission (NCDRC), alleging failure to comply with the terms of the Builder Buyer Agreement, and are seeking compensation. The matter has been listed for admission /hearing /directions, by NCDRC, in September, 2015. The Company perceives the said complaint as misconceived and not tenable, and does not foresee any financial impact, as of now.

Note :4

Related party disclosures:

(i) (a) Names of related parties and nature of related party relationship where control exists are as under:

Holding Company : Industrial Investment Trust Limited

(b) Names of other related parties and nature of relationship where there are transactions with related parties:

Fellow Subsidiaries : IIT Investrust Limited IIT Insurance Broking and Risk Management Private Limited

Jointly controlled Entities : IITL-Nimbus, The Hyde Park Noida - a partnership firm

IITL- Nimbus, The Express Park View - a partnership firm

IITL- Nimbus, The Palm Village - a partnership firm

Capital Infraprojects Private Limited

Key Management Personnel : D.P. Goyal, Managing Director

Company in which Nimbus Projects Limited directors have significant influence :

Note :5

The Company''s business activity falls within a single segment viz." Real Estate development and related activities" and the income there from being in the domestic market, the disclosure requirements of Accounting Standard 17 "Segment Reporting", notified by the Companies (Accounting Standard) Rules, 2006 are not applicable.

Note :6

Pursuant to the enactment of the Companies Act 2013 (the ''Act''), the Company has, effective 1st April 2014, reviewed and revised the estimated useful life of its fixed assets, in accordance with the provisions of Schedule II to the Act. The carrying amount of the assets as on that date has been depreciated over the remaining useful life of the assets as per Schedule II of the Companies Act, 2013. Consequently, depreciation for the year is higher by Rs. 1,02,554. Further, an amount of Rs. 5,255 has been recognized in the Deficit in the statement of profit and loss, where the remaining useful life of such assets is Nil as at 1st April, 2014 in line with the provisions of Schedule II to the Act.

Note :7

The Company has issued 7,000,000 12% Non Convertible Cumulative Redeemable Preference Shares of Rs. 10 each fully paid- up. As per the terms of issue the Preference Shares shall be redeemable at the end of seventh year from the date of allotment, however, the Company has an option to redeem, all or any part thereof, of the said Preference Shares, in one or more tranches, at the end of the third year and/or at the end of the fifth year. The amount of premium per share varies depending on the year of redemption. Till previous year the Company had provided for premium payable on redemption of these Preference Shares on prorate basis on the assumption that these Shares would be redeemed at the end of third year. However during the year, as per the current plan these Shares would be redeemed at the end of seventh year and accordingly the Company has provided for premium payable on redemption of these Shares based on this assumption.

Note :8

The Company is in the process of appointing a Chief Financial Officer as key managerial personnel.

Note :9

Previous year''s figures have been regrouped/reclassified wherever necessary to correspond with the current year classification / disclosure.


Mar 31, 2013

1.1 Basic earnings per share have been calculated by dividing proft after tax attributable to equity shareholders by the weighted average number of equity shares outstanding during the year. The Company has not issued any potential equity shares and accordingly, the basic earnings per share and diluted earnings per share are the same. Values used in calculating earnings per share are as under:

1.2. The Company''s business activity falls within a single segment viz."Real Estate development and related activities" and the income there from being in the domestic market, the disclosure requirements of Accounting Standard 17 "Segment Reporting", notifed by the Companies (Accounting Standard) Rules, 2006 are not applicable.

1.3. In compliance with the Accounting Standard 27 on ''Financial Reporting of Interests in Joint Ventures'' as notifed by the Companies (Accounting Standards) Rules, 2006, the Company has interests in the following jointly controlled entities:

1.4 Employee Benefts

(a) Defned Contribution Plan

Contribution to defned contribution plan, recognised in the Statement of Proft and Loss under Contribution to provident fund and other funds in note 2.22 for the year are as under:

(b) Defned Beneft Plan (Contd.)

vi a. The estimates of rate of escalation in salary considered in actuarial valuation take into account infation, seniority, promotion and other relevant factors including supply and demand in the employment market.

b. The discounting rate is considered based on market yield on government bonds having currency and terms consistent with the currency and terms of the post-employment beneft obligations.

c. Expected rate of return on assets is determined based on expectation of the average long term rate of return expected on investments of the fund during the estimated term of the obligations.


Mar 31, 2012

(a) Rights, preferences and restrictions attached to equity shares

The Company has only one class of equity shares having a par value of Rs. 10 per share. Each holder of equity shares is entitled to one vote per share. The dividend, if any, proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the Company, the holders of equity shares will be entitled to the receive remaining assets of the Company, after payment of all claims/liabilities. The distribution will be in proportion to the number of equity shares held by the shareholders.

(b) Shares held by the holding company

Out of total 4,990,900 (previous year 4,990,900) Equity shares, 3,580,347 (previous year 3,580,347) Equity shares are held by the holding company, Industrial Investment Trust Limited.

# Premium for development rights is payable in half-yearly installments upto 9th March, 2017 to Greater Noida Industrial Development Authority, pursuant to the lease deed. The half-yearly installments payable within next 12 months, amounting to Rs. 14,532,484 (previous year Rs. 10,641,736) are classified as current trade payables under Note 2.5.

(a) There are no amounts due to the suppliers covered under the Micro, Small and Medium Enterprises Development Act, 2006; this information takes into account only those suppliers who have responded to the enquiries made by the Company for this purpose. This has been relied upon by the auditors.

(b) In respect of each of the above firms, which are engaged in developing real estate projects, the Company has in terms of the respective partnership deeds agreed to contribute further capital as and when needed for the real estate projects.

(c) The balances in current accounts of the Joint Venture partnership firms are based on the audited accounts of the respective entities for the current and previous year.

Particulars As at As at 31st March, 2012 31st March, 2011

1.1 Contingent liabilities and commitments

(a) Contingent liabilities not provided for in respect of 167,267 225,525 Disputed income-tax matters in appeal

In respect of above items, outflow of resources would depend upon the outcome of the appeal.

(b) Refer to Note 2.9(b) regarding commitments to contribute towards development of real estate projects.

1.2 Basic earnings per share have been calculated by dividing profit after tax attributable to equity shareholders by the weighted average number of equity shares outstanding during the year. The Company has not issued any potential equity shares and accordingly, the basic earnings per share and diluted earnings per share are the same. Values used in calculating earnings per share are as under:

1.3 Related party disclosures:

(i) (a) Names of related parties and nature of related party relationship where control exists are as under:

Holding Company: Industrial Investment Trust Limited

(b) Names of other related parties and nature of relationship where there are transactions with related parties:

Fellow Subsidiaries IIT Investrust Limited

IIT Insurance Broking and Risk Management Private Limited

Joint Venture Entities IITL Nimbus The Hyde Park Noida -a partnership firm (w.e.f 9th April 2010)

IITL- Nimbus The Express Park View -a partnership firm (w.e.f. 15th April 2011)

IITL- Nimbus The Palm Village -a partnership firm (w.e.f. 24th June, 2011)

Capital Infraprojects Private Limited (w.e.f 24th March 2011)

Key Management Personnel: T. M. Nagarajan, Executive Chairman. (upto 3rd July 2010)

D.P. Goyal, Managing Director (w.e.f 5th July 2010)

1.4 The Company's business activity falls within a single segment viz." Real Estate development and related activities" and the income there from being in the domestic market, the disclosure requirements of Accounting Standard 17 "Segment Reporting", notified by the Companies (Accounting Standard) Rules, 2006 are not applicable.

Notes:

a) The Company's share of assets, liabilities, income and expenditure has been included on the basis of audited financial information of its joint ventures.

b) Previous year figures are in brackets.

1.5 Employee Benefits

(a) Defined Contribution Plan

Contribution to defined contribution plan, recognised in the Statement of Profit and Loss under Contribution to provident fund and other funds in note 2.21 for the year are as under:

The Company expects to contribute Rs. 4,500 to its Defined Benefit Gratuity plan during the annual period beginning after the Balance Sheet date.

The major categories of Plan Assets as a percentage of the fair value of total Plan Assets are as follows:

Funds maintained with Life Insurance Corporation of India 100.00%

Note :The Company is unable to obtain the details of major category of plan assets from the insurance company (Life Insurance Corporation of India) and hence the disclosure thereof is not made.

vi a. The estimates of rate of escalation in salary considered in actuarial valuation take into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market.

b. The discounting rate is considered based on market yield on government bonds having currency and terms consistent with the currency and terms of the post-employment benefit obligations.

c. Expected rate of return on assets is determined based on expectation of the average long term rate of return expected on investments of the fund during the estimated term of the obligations.

vii Net assets / (liabilities) recognised in the Balance Sheet as at respective year ends and experience adjustment:

Accounting Standard (AS) 15 (Revised) on Employee Benefits notified by The Companies (Accounting Standards) Rules, 2006 requires the disclosure of the above information for the past four years; however the information is available only since the date of implementing the Standard.

viii The above information is as certified by the actuary and relied upon by the auditors.

1.6 The Revised Schedule VI has become effective from 1st April, 2011 for the preparation of financial statements. This has significantly impacted the disclosure and presentation made in the financial statements. Previous year's figures have been regrouped / reclassified wherever necessary to correspond with the current year's classification / disclosure.


Mar 31, 2010

31-03-2010 31-03-2009 Rupees Rupees

(1) Contingent liability not provided for in respect of: 222,079 222,079

(a) Disputed income-tax matter under appeal. The outflow of resources would depend upon the 340,000 - outcome of the appeal.

(b) Claim not acknowledged as debt



(2) The Company was primarily engaged in dealing or trading in shares and other related financing activities which were discontinued consequent to the change in Management control during the course of the previous year, after which the Company is primarily engaged in Real Estate related activities. Accordingly, the segment disclosures in terms of Accounting Standard 17 on "Segment Reporting", notified under the Companies (Accounting Standard) Rules, 2006, are as under:

(i) Secondary segments - Geographical segments.

The revenue of the Company is only from the domestic market. Therefore, there are no reportable geographical segments.

(3) Related party disclosures:

(i) (a) Names of related parties and nature of related party relationship where control exists are as under.

Holding Company : Industrial Investment Trust Limited

(b) Names of other related parties and nature of relationship where there are transactions with related parties :

Fellow subsidiary company : IIT Investrust Limited

Companies in which directors

have significant influence : NCJ International Limited

Detco Polyesters Private Limited

(upto 4th August, 2008)

Key management personnel : T. M. Nagarajan, Executive Chairman.

Usha Singhania, Managing Director (upto 4th August, 2008)

(4) There are no amounts due to the suppliers covered under the Micro, Small and Medium Enterprises Development Act, 2006; this information takes into account only those suppliers who have responded to the enquiries made by the Company for this purpose. This has been relied upon by the auditors.

(5) Employee Benefits

Effective April 1,2009, the Company has adopted the Accounting Standard 15 "Employee Benefits". Upto the previous year, the number of employees were less than ten, hence provisions of the The Payment of Gratuity Act, 1972 were not applicable.

vi. a. The estimates of rate of escalation in salary considered in actuarial valuation take into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market.

b. The discounting rate is considered based on market yield on government bonds having currency and terms consistent with the currency and terms of the post-employment benefit obligations.

vii. The above information is as certified by the actuary and relied upon by the auditors.

(6) Borrowing costs capitalised during the year is Rs.39,452 /-(previous year: Rs. Nil) and is included in Construction work-in-progress.

(7) The Company has taken an office premise on operating lease. The lease term is on the basis of the agreement entered into with the landlord. The agreement provides for increase in rent. There are no restrictions imposed by the lease arrangement. There are no sub leases. The lease rental expenses recognized in the profit and loss account for the year Rs. 429, ] 84/-(previous year: Rs Nil).

(8) The figures relating to the previous year have been regrouped wherever necessary.





 
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