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Notes to Accounts of India Home Loan Ltd.

Mar 31, 2014

1. Property Loans consists of Non - Housing Loans such as mortgage Loans, Project Loans, commercial Loans, Plot Loans, Lease rental finance and other loans which are all against real estate properties and which are not covered under the housing Loan criteria of National Housing Bank.

1.1 As certified by the management, loans given by the Company are secured by equitable mortgage/ registered mortgage of the Property and assets financed and / or assignment of Life Insurance policies and / or personal guarantees and / or personal guarantees and / or undertaking to create a security and / or hypothecation of assets and are considered appropriate and good

1.2 Housing and other property loans ( current and Non current ) includes Rs. 75,00,000/- given to the company in which key managerial persons excise significant influence under normal course of business

NOTE 2. ADDITIONAL INFORMATION TO FINANCIAL STATEMENTS

Note Particulars Current Year Previous Year (Rs.) (Rs.)

2.1 Contingent liabilities and commitments (to the extent not provided for)

Contingent liabilities

(a) Claims against the Company not acknowledged as debt Nil Nil

2.2 Disclosures required under Section 22 of the Micro, Small and Medium Enterprises Development Act, 2006

There is no dues to Micro and Small Enterprises have been determined to the extent such parties have been identified on the basis of information collected by the Management.

2.3 Loans granted by the Company are secured or partly secured by

(a) Equitable mortgage of property and / or

(b) Pledge of shares, units, other securities, assignments of life insurance policies and / or

(c) Hypothecation of assets and / or

(d) Bank guarantees, Company guarantees or Personal guarantees and / or

(e) Undertaking to create a security

2.4 In the opinion of the company, there is only one reportable business segment i.e. Housing Finance Business Segment geographically only located in India for the purpose of Accounting Standard on "Segment Reporting (AS-17)

notified by the Companies (Accounting Standards) Rules, 2006

2.5 The balances appearing under unsecured loans, sundry creditors, 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 realisation in the ordinary course of business at least equal to the amount at which they are stated.

2.7 The company has appropriated a sum of Rs. 12,00,000/- (Previous Year Rs.12,76,780 ) to reserve fund which is in compliance with the requirement of section 29C of the National Housing Bank Act, 1987.

2.8 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. 14,09,624/- (Previous Year Rs. 11,10,000/-) during the year.

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


Mar 31, 2013

1.1 Disclosures required under Section 22 of the Micro, Small and Medium Enterprises Development Act, 2006

Dues to Micro and Small Enterprises have been determined to the extent such parties have been identified on the basis of information collected by the Management. This has been relied upon by the auditors.

1.2 Loans granted by the Company are secured or partly secured by

(a) Equitable mortgage of property and / or

(b) Pledge of shares, units, other securities, assignments of life insurance policies and / or

(c) Hypothication of assets and / or

(d) Bank guarantees, Company guarantees or Personal guarantees and / or

(e) Undertaking to create a security

1.3 The company has complied with the norms prescibed under Housing Finance Companies (NH6) Directions, 2010 for recognising Non-Performing Assets (NPAs) in preparation of accounts. The NPA consisting of the principal loans outstanding where payments of EMI were in arrears for over 90 days amounted to 765,35,761/- (Previous Year 787,48,942/-). As per the prudential norms prescribed by the National Housing Bank, in respect of credit exposures, the total provisioning made till 31st March, 2013 is 7 563,98,576/- (Previous Year 7 53,98,576/-). Details of which is as follows:

1.4 In the opinion of the company, there is only one reportable business segment i.e Housing Finance Business Segment geographically only located in India for the purpose of Accounting Standard on "Segment Reporting (AS-17) notified by the Companies (Accounting Standards) Rules, 2006

1.5 The balances appearing under unsecured loans, sundry creditors, 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.

1.6 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.

1.7 The company has appropriated a sum of 7 12,76,780/- (Previous Year 7 NIL ) to reserve fund which is in compliance with the requirement of section 29C of the National Housing Bank Act 1987.

1.8 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 711,10,000/- (Previous Year 79,00,000/-) during the year.

1.9 previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosures.


Mar 31, 2012

Note Particulars 31st March. 2012 31st March. 2011 (Rs.) (Rs.)

1.1 Contingent liabilities and commitments (to the extent not provided for)

Contingent liabilities

(a) Claims against the Company not acknowledged as debt Nil Nil

1.2 Disclosures required under Section 22 of the Micro, Small and Medium Enterprises Development Act, 2006

Dues to Micro and Small Enterprises have been determined to the extent such parties have been identified on the basis of information collected by the Management. This has been relied upon by the auditor

1.3 Loans granted by the Company are secured or partly secured by

(a) Equitable mortgage of property and / or

(b) Pledge of shares, units, other securities, assignments of life insurance policies and / or

(c) Hypothecation of assets and / or

(d) Bank guarantees, Company guarantees or Personal guarantees and / or

(e) Undertaking to create a security

Note: Figures in bracket indicates previous year figures

The company has charged/(reversed) excess provision of Rs. 10,52,525/- (Previous Year Rs. 8,14,634/-) during the current year to make up the total provisioning of Rs. 53,98,576/- (Previous Year Rs. 43,46,051/-).

1.4 In the opinion of the company, there is only one reportable business segment i.e Housing Finance Business Segment geographically only located in India for the purpose of Accounting Standard on "Segment Reporting (AS-17) notified by the Companies (Accounting Standards) Rules, 2006

1.5 The following additional disclosures have been given in terms of the circular no. NHB/ND/DRS/Pol-No.35/2010- 11 dated October 11,2010 issued by National Housing Bank:

1.6 The balances appearing under unsecured loans, sundry creditors, 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.

1.7 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.

1.8 The company has appropriated a sum of Rs. 8,75,961/- (Previous Year Rs. 4,35,400/-) to reserve fund which is in compliance with the requirement of section 29C of the National Housing Bank Act, 1987.

1.9 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. 9,00,000/- (Previous Year Rs. 8,20,000/-) during the year.

1.10 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".

1.11 The Revised Schedule VI has become effective from 1 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 / disclosures.


Mar 31, 2011

1. Contingent Liabilities

Nature Amount (Rs)

Claims against company not acknowledged as debts : Nil

2. During the year under audit, the Company has received the balance 75% of the total consideration aggregating to Rs 5,94,25,000/- from the proposed allottees. Accordingly, the Board approved the conversion of 59,42,500 Convertible Warrant of Rs 10/- each aggregating to Rs 5,94,25,000/- into 59,42,500 equity shares of Rs 10/- each aggregating to Rs 5,94,25,000/- in the Board Meeting held on 17th December, 2010, 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 & non-promoters. Further the company has also obtained the listing and trading permission for the said 59,42,500 equity shares of Rs 10/- each from the Mumbai Stock Exchange.

3. 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.

4. The balances appearing under sundry creditors, loans advanced, deposits and certain banks are subject to confirmation and reconciliation and consequential adjustment, if any, will be accounted for in the year of confir- mation and/or reconciliation.

5. Housing loans are secured or partly secured by:

Equitable Mortgage/Registered Simple Mortgage of Property and/or

Assignment of LIC Polices and/or

Personal Guarantees, Promissory Notes and/or

Undertaking to create a security wherever applicable

8. The company provides for all employee benefits on payment basis and hence liability towards gratuity and leave salary as required under AS-15 on Retirement Benefits is not ascertained and accordingly not provided by the company as on the balance sheet date.

9. 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.

10. Additional information pursuant to the provisions of Paragraph 3 and 4 of Part II of Schedule VI to the Companies Act, 1956:

11. The company operates in a single segment of Housing Finance in India and hence the segment-wise reporting as per Accounting Standard -17 on "Segment Reporting" is not applicable.

12. The Non Performing Assets (NPA) consisting of the principal loans outstanding where payments of EMI were in arrears for over 90 days amounted to Rs 1,36,25,233/- (Previous Year Rs 1,71,43,796/-). As per the prudential norms prescribed by the National Housing Bank, in respect of credit exposures, the total provisioning required till 31st March, 2011 is Rs 43,46,051/- (Previous Year Rs 51,60,685/-). Details of which is as follows:

The company has reversed excess provision of Rs 8,14,634/- (Previous Year Rs 23,20,200/-) during the current year to make up the total provisioning of Rs 43,46,051/- (Previous Year Rs 51,60,685/-).

15. The company has appropriated a sum of Rs 4,35,400/- (Previous Year Rs 5,41,000/-) to reserve fund which is in compliance with the requirement of section 29C of the National Housing Bank Act, 1987.

16. National Housing Bank has levied a penalty of Rs. 1,000/- on the Company for late submission of the Annual Return as on 31st March 2010. Accordingly, the Company has paid the penalty.

17. 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 8,20,000/- (Previous Year Rs 4,50,000/-) during the year.

18. Deferred Tax

In accordance with Accounting Standard 22 (AS-22), "Accounting for taxes on Income", issued by the Institute of Chartered Accountants of India, the company has provided for deferred tax for year under audit. The net deferred tax asset of Rs 50,06,536/- as at the balance sheet date has been carried forward. The net deferred tax asset consists of the following components:

(*) The management is of the opinion that in relation to brought forward assessed loss deferred tax assets on the same is to be recognized in presence of virtual certainty as to absorption of the loss in the foreseeable future based on the current level of operation of the company and effective application of the fresh funds received by the company, during the year as explained in note 2 above, in business in the form of disbursements of new loans. Hence, deferred tax asset on brought forward loss has been recognised.

19. Previous year figures have been regrouped and recast to the extent practicable, wherever necessary to conform to current year classification.


Mar 31, 2010

1. Contingent Liabilities

Nature Amount (Rs.)

Claims against company not acknowledged as debts: Nil

Reference to the High Court by the Income tax department for 2,36,29,079/-

assessment years 1996-97, 1997-98 and 2001-02 against the company (Refer Note 15 below)

2. The Company in the Annual General Meeting (AGM) held on 22nd August 2009, approved the issue & allotment of 59,42,500/- Convertible Warrant of Rs. 10/- each aggregating to Rs. 5,94,25,000/- 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 promoters & non-promoters. Accordingly, 25% of the total consideration of Rs. 5,94,25,000 i.e Rs. 1,48,56,250/- has been received by the company and in-principle approval of the Mumbai Stock Exchange (BSE) for the same is also obtained

3. 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.

4. The balances appearing under sundry creditors, loans advanced, deposits 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.

5. Housing loans are secured or partly secured by:

- Equitable Mortgage of Property and/or

- Assignment of LIC Polices and/or

- Personal Guarantees, Promissory Notes and/or

- Undertaking to create a security

6. The company provides for all employee benefits on cash basis and hence liability towards the same as required under AS-15 on Retirement Benefits is not ascertained by the company as on the balance sheet date.

7. 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.

8. The company operates from a single segment of Housing Finance in India and hence the segment-wise reporting as per Accounting Standard -17 on "Segment Reporting" is not applicable.

9. The Non Performing Assets (NPA) consisting of the principal loans outstanding where payments of EMI were in arrears for over 90 days amounted to Rs. 1,71,43,796/- (Previous Year Rs. 1,07,34,277/-). As per the prudential norms prescribed by the National Housing Bank, in respect of credit exposures, the total provisioning required till 31st March, 2010 is Rs. 51,60,685/- (Previous Year Rs. 28,40,485/-). Details of which is as follows:

10. Disclosure as per Accounting Standard -18

(a) List of Related Parties

Key Managerial Personnel

- Mr Mahesh Pujara

- Mr Rishabh Siroya

- Mr Ashok Patel

- Mr Subhash Patel - Mr Anant Bhalotia

- Mr Mitesh Pujara

Relatives of Key Managerial Personnel : Nil

Associated Concerns : Nil

11. The company has appropriated a sum of Rs. 5,41,0007- to a special reserve in terms of section 36 (1)(viii) of the Income Tax Act, 1961 which is in compliance with the requirement of section 29C of the National Housing Bank Act, 1987.

12. 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. 4,50,0007- (Previous Year Rs. 2,55,000/-) during the year.

13. The disputed demand in respect of Income Tax outstanding for the Assessment Year 1996-97, 1997-98 and 2001- 02 is Rs. 2,36,29,079/-, for which the income tax department has referred the matter to the Bombay High Court and the same is pending. Based on the decision 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 deleted and accordingly no provision has been made.

14. Deferred Tax

In accordance with Accounting Standard 22 (AS-22), "Accounting for taxes on Income", issued by the Institute of Chartered Accountants of India, the company has provided for deferred tax for year under audit. The net deferred tax asset of Rs. 55,83,031/- as at the balance sheet date has been carried forward. The net deferred tax asset consists of the following components:

(*) The management is of the opinion that in relation to brought forward assessed loss as per the Appellate Tribunals order and as upheld by the Bombay High Court, deferred tax assets on the same is to be recognized in presence of virtual certainty as to absorption of the loss in the foreseeable future based on the current level of operation of the company and effective application of the fresh funds received by the company, during the year as explained in note 2 above, in business in the form of disbursements of new loans. Hence, deferred tax asset on brought forward loss has been recognised.

15. Previous year figures have been regrouped and recast to the extent practicable, wherever necessary to conform to current year classification.

16. Balance Sheet and General Business Profile (in terms of Part IV of Schedule VI to the Companies Act, 1956) is annexed herewith.



 
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