Mar 31, 2018
Notes:
1 The fair value of the Company''s investment properties as at March 31, 2018, March 31, 2017, and April 1, 2016 have been arrived at on the basis of a valuation carried out as on the respective dates by Mr. Pravin Shaha, independent valuer not related to the Company, having appropriate recognized professional qualifications and experience in the category of the property being valued.
2. Valuation technique and key inputs used to determine the fair value :
Level 3 - Fair valuation of residential premises has been done by Sales Comparison Method under Market Approach for March 2018 and March 2017. A comparison is made for the purpose of valuation with similar properties that have recently been sold in the market and thus have a transaction price. The sales comparison approach is the preferred approach when sales data are available. Comparable properties are selected for similarity to the subject property considering attributes like age, size, shape, quality of construction, building features, condition, design, gentry, etc. Finally a market value for the subject property is estimated from the adjusted sales price of the comparable properties.
Fair valuation of free hold lands is based on government rates, market research, marked trends and comparable values as considered appropriate.
3. During the year freehold lands amounting to fair value of '' 16,846.70 lakhs have been classified as investment property.
* The Company has received by way of bonus one (1) fully paid-up, secured, non-cumulative, non-convertible, redeemable, taxable debentures of face value of '' 12.50 each for every one (1) fully paid equity share of face value of '' 10.00 each of National Thermal Power Corporation Limited held as on March 23, 2015. These debentures carry interest coupon of 8.54% per annum.
** In respect of equity investments which are not held for trading, the Company has made an irrevocable election to present subsequent changes in the fair value of such instruments in Other Comprehensive Income. Such an election is made by the Company on instrument by instrument basis at the time of transition for existing equity instruments / initial recognition for new equity instruments.
Valuation technique and key inputs used to determine the fair value :
Level 1 - The fair value of the equity instruments which are not held for trading is obtained through the publicly available portal. This fair value of these instrument, represents the price at which the equity instruments are bought or sold at the Bombay Stock Exchange.
Trade receivables includes retentions Rs, 27,323.44 lakhs (March 31, 2017 Rs, 26,497.63 lakhs, April 01, 2016 Rs, 21,776.31 lakhs)
Trade receivables (current) are hypothecated as security by creating 1st pari passu charge for securing working capital demand loans (refer note no. 2.15)
In accordance with Ind AS 109, the Company has used the practical expedient by computing the expected credit loss allowance for trade receivables by following simplified approach. The expected credit loss model takes into account historical credit loss experience and adjusted for forward looking information. Simplified approach does not require the Company to track changes in credit risk. Rather, it recognizes impairment loss allowance based on lifetime ECL at each reporting date, right from its initial recognition.
The Company''s customer profile includes government departments and large private corporate. Accordingly, the Company''s customer credit risk is low. The Company''s average project execution cycle is around 36 to 60 months.
General payment terms include mobilization advance, monthly progress payments and certain retention money to be released at the end of the project. In some cases retentions are substituted with bank guarantees.
The Company has a detailed review mechanism of overdue customer receivables at various levels within organization to ensure proper attention and focus for realization.
There are no trade receivables due from any director or any officer of the Company, either severally or jointly with any other person, or from any firms or private companies in which any director is a partner, a director or a member.
a) Of the above:
(i) 2,42,23,585 (2,42,23,585) Equity Shares fully paid-up have been issued as bonus shares by capitalization of general reserves.
(ii) 8,72,320 (8,72,320) Equity Shares are held by ultimate holding company Ratanchand Investment Pvt. Ltd.
b) During the previous year 2,42,23,585 Equity Shares of Rs, 2/- each were issued and allotted (w.e.f. 14th December, 2016) as fully paid Bonus Shares by capitalization of free reserves in the proportion of one bonus share of Rs, 2/- each for every one Equity Share of Rs, 2/- held by them as on the Record Date.
d) Terms / rights attached to shares:
The Company has only one class of shares referred to as equity shares having a par value of Rs, 2/- each holder of equity shares is entitled to one vote per share.
The interim dividend proposed and paid by the Board of Directors is subject to the approval of the share holders in the ensuing Annual General Meeting.
* In respect of certain âWorks Contracts'' executed in earlier years in the State of Rajasthan, the Company had paid sales tax using Exemption Fee (Composition) Scheme under Rajasthan Sales Tax Law on such âWorks Contracts'' based on certain rules notified under the Sales Tax Act then prevailing. The Sales Tax Department had since challenged the Company''s position and claimed that such âWorks Contracts'' be treated as a divisible contracts and be subjected to tax component-wise and had accordingly raised a demand, which was challenged by the Company. The Company had also filed a Special Leave Petition with the Hon''ble Supreme Court, against the common final judgment Order dated February 13, 2015 passed by the Hon''ble High Court of Rajasthan. Subsequently the Hon''ble Supreme Court rejected the appeal filed by the Company by Order dated August 28, 2017. The Company, based on legal advise, has filed an application seeking recall of the said order. Pending outcome of the ârecall application'', on a prudent basis, the Company has made a provision of Rs, 3033 lakhs against sales tax demand (including interest thereon of Rs, 2132 lakhs) For admission of recall petition, hearing in Hon''ble Supreme Court of India is expected shortly.
** a. The Company has incurred CSR Expenditure of Rs,180.88 lakhs (31st March 2017 Rs,100.00 lakhs).
b. The areas for CSR activities undertaken by the Company are Health, Medical aid, and Education grants etc. The Company has formed its CSR Committee as per the Act and Rules thereon.
c. The contribution for CSR activities to corpus of Ratanchand Hirachand Foundation, a Section 8 Company promoted by the Promoters of the Company for undertaking CSR activities on behalf of the Company as per CSR Policy read with Schedule VII of the Act.
d. As per section of 135 of the Companies Act, 2013 (the Act) a company meeting the applicability threshold, needs to spend at least 2% of its average net profit for the immediately preceding three financial years (calculated in accordance with the provisions of Section 198 of the Act) on corporate social responsibility (CSR) activities/programs in terms of its CSR policy and Schedule VII of the Act. The report on CSR activities and CSR expenditure incurred by the Company for the Financial Year 2017-18 is given in the Board''s Report.
4 Segment information
The reportable segment of the Company are construction and others. The segment are largely organized and managed separately based on nature of product and or services.
Operating segment are reported in a manner consistent with the internal reporting provided to the ''Executive Director'' and ''Chairman & Managing Director'' jointly regarded as Chief Operating Decision Maker ("CODM").
Description of each of the reportable segments for all periods presented, is as under : a Construction contracts including water supply schemes, pipe supply & laying projects This segment fetches revenue mainly from following activities :
(i) Manufacturing and sale of pipes.
(ii) Supply and installation and laying of pipes.
For financial statements presentation purposes, these individual operating segments have been aggregated into single operating segment taking into account following factors :
- These operating segments have similar long-term profit margin
- The nature of products are similar
- The production processes are similar
b Others
This segment consists of selling of railway sleepers to government clients and rifles to private customers and development of land and other miscellaneous items.
The CODM evaluates the Company''s performance and allocate resources based on an analysis of various performance indicators by operating segment.. The CODM reviews revenue and gross profit as performance indicators for operating segment.
The measurement of each segments revenues, expenses and asset is consistent with the accounting policies that are used in preparation of the financial statement. Segment profit represents, the profit before interest and tax
*The revenue of the Company from a single large customer i.e. more than 10%, amounts to Rs, 32,189.12 lakhs for the year ended March 31, 2018 (March 31, 2017 Rs, 90,322.67 lakhs)
Rs, 2.33 List of related party transaction
Following are the related parties of the Company identified by the management Key management personnel Mr. Rajas R. Doshi Mr. Mayur R. Doshi Relative of key management personnel Mrs. Jyoti R. Doshi Mr. Aditya R. Doshi Mrs. Anushree M. Doshi Holding company IHP Finvest Ltd.
Ultimate holding company
Ratanchand Investment Pvt. Ltd.
Companies in which control exists directly / indirectly
Ratanchand Hirachand Foundation Walchand Hirachand Foundation Mobile Systems India Pvt. Ltd.
Raj Jyoti Trading & Investment Pvt. Ltd.
Smt. Pramila Shah Charity Foundation Walchand Trust Other related parties
Ms. Anima B. Kapadia (Non-Executive Non-Independent Director)
Verifacts Services Pvt. Ltd.
2.38 Note on capital management and financial risk management
For the purpose of the Company''s capital management, capital includes issued equity capital and all other equity reserves attributable to the equity holders of the Company. The Company strives to safeguard its ability to continue as a going concern so that it can maximise returns for the shareholders and benefits for other stake holders. The aim to maintain an optimal capital structure and minimize cost of capital.
The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may return capital to shareholders, issue new shares or adjust the dividend payment to shareholders (if permitted) consistent with others in the industry.
The Company''s activities expose it to a variety of financial risks: market risk, credit risk and liquidity risk. The Company''s focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its financial performance.
5 Market risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as equity price risk. Major financial instruments affected by market risk includes loans and borrowings.
(i) Interest rate risk
The Company is working capital intensive and is rated in âAâ band category due to which it is in a position to negotiate competitive pricing for its working capital requirement from Consortium member banks and also from outside consortium banks. The Company avails funds from the banks for a committed / fixed rate of interest for a longer tenure and as such the exposure of the Company towards interest rate volatility is minimized. With regard to Term Loan, exposure of the Company is insignificant and hence does not pose much threat towards unforeseen and unprecedented & volatile interest risk.
(ii) Foreign currency risk
The Company has very few and small value transaction in foreign currency hence the Company is exposed to limited foreign exchange risk.. Nonetheless, the Company evaluates exchange rate exposure arising from foreign currency transactions and follows established risk management policies.
Sensitivity analysis
The Company''s exposure in foreign currency is not material and hence the impact of any significant fluctuation in the exchange rates is not expected to have a material impact on the operating profits of the Company.
(iii) Equity price risk
The Company''s listed and non-listed equity securities are susceptible to market price risk arising from uncertainties about future values of the investment securities. The Company manages the equity price risk through diversification and by placing limits
As at 31 March 2018, the exposure to listed equity securities at fair value was Rs, 213.77 lakhs. These changes would not have a material effect on the profit or loss of the Company.
2 Credit Risk
Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. The maximum exposure of the financial assets
are contributed by trade receivables, unbilled work-in-progress, cash and cash equivalents.
a Credit risk on trade receivables and unbilled work-in-progress is limited as the customers of the Company mainly consist of the government entities having a strong credit worthiness. For other customers, the Company normally secures recoverability of dues by means of getting letters of credits established on first class banks in favour of the Company if the material is sold on credit or against receipt of advances from the customers for such supplies and unbilled work-in-progress.
b Credit risk on cash and cash equivalents is limited as the Company invest in deposits with banks mainly for the purpose of offering EMDs for the tenders floated by prospective customers.
In accordance with Ind AS 109, the Company has used the practical expedient by computing the expected credit loss allowance for trade receivables by following simplified approach. The expected credit loss model takes into account historical credit loss experience and adjusted for forward looking information. Simplified approach does not require the Company to track changes in credit risk. Rather, it recognises impairment loss allowance based on lifetime ECL at each reporting date, right from its initial recognition.
6 Liquidity Risk
Liquidity is defined as the risk that the Company will not be able to settle or meet its obligations on time or at a reasonable price. The Company''s finance department is responsible for liquidity, funding as well as settlement management. In addition, processes and policies related to such risks are overseen by senior management.
The following tables details the Companies'' remaining contractual maturities for its non-derivative financial liabilities with agreed repayment periods. The table has been drawn up based on undiscounted cash flows of financial liabilities based on the earliest date on which the Company can be required to pay. The table includes both interest and principle cash flow.
# In respect of equity investments which are not held for trading, the Company has made an irrevocable election to present subsequent changes in the fair value of such instruments in Other Comprehensive Income. Such an election is made by the Company on instrument by instrument basis at the time of transition for existing equity instruments / initial recognition for new equity instruments.
The fair value of the equity instruments which are not held for trading is obtained through the publicly available portal. This fair value of these instrument, represents the price at which the equity instruments are bought or sold at the Bombay Stock Exchange.
D Through its gratuity fund and leave plans the Company is exposed to a number of risks, the most significant of which are detailed below -Interest risk
A decrease in the bond interest rate will increase the plan liability; however, In case of gratuity fund, this will be partially offset by an increase in the return on the fund''s assets Longevity risk
The present value of Gratuity fund and leave plan liability is calculated by reference to the best estimate of the mortality of plan participants. An increase in the life expectancy of the plan participants will increase the plan''s liability.
Salary risk
The present value of the Gratuity fund and leave plan liability is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the plan''s liability.
Investment risk
Funded plans being managed by insurers, the value of assets certified by the insurer may not be the fair value of instruments backing the liability. In such cases, the present value of the assets is independent of the future discount rate. This can result in wide fluctuations in the net liability or the funded status if there are significant changes in the discount rate during the inter-valuation period.
E Accumulated compensated absences ( non vesting)
Actuarial valuation of sick leave has been made on March 31,2018. Gain in respect of this benefit is Rs, 9.07 lakhs recognized in financial year ending March 31, 2018. (March 31, 2017 loss of Rs, 19.25 Lakhs) and a liability of Rs,117.25 Lakhs is outstanding as on March 31, 2018. (March 31, 2017 Rs, 126.31 Lakhs, April 01, 2016 Rs, 107.05).
7 B Defined contribution plans
The Company makes contributions towards Provident Fund, Employee''s State Insurance Corporation (ESIC) for qualifying employees The Company has recognized Rs, 354.70 (2016-17 Rs, 331.35) for the year being Company''s contribution to Provident Fund and ESIC, as an expense and included in Employee Benefit Expenses in the Statement of Profit and Loss.
The above disclosures are prepared as per requirements of Ind AS 19 to the extent of information available with the Company.
8 Research and Development Expenditure
The expenses on research and development during the year under various heads amounts to Rs, 346.60 lakhs (previous year Rs, 340.49 lakhs).
9 Standards issued but not yet effective:
In March 2018, the Ministry of Corporate Affairs issued the Companies (Indian Accounting Standards) (Amendments) Rules, 2018, notifying Ind AS 115 - ''Revenue from Contracts with Customers'' and consequential amendments to various Ind AS standards. The amended Rules also notified amendments to Ind AS 12 - ''Income Taxes'', Ind AS 21 - ''The Effect of Changes in Foreign Exchange Rates'', Ind AS 28 - ''Investments in Associates and Joint Ventures'' and Ind AS 40 - ''Investment Property''. These amendments are in accordance with the recent amendments made by International Accounting Standards Board (IASB). The amendments are effective from accounting periods beginning from 1st April, 2018.
a Ind AS 115 - ''Revenue from Contracts with Customers'':
On March 28, 2018, Ministry of Corporate Affairs (""MCA"") has notified the Ind AS 115, Revenue from Contract with Customers. The core principle of the new standard is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Further the new standard requires enhanced disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity''s contracts with customers.
The standard permits two possible methods of transition:
- Retrospective approach - Under this approach the standard will be applied retrospectively to each prior reporting period presented in accordance with Ind AS 8- Accounting Policies, Changes in Accounting Estimates and Errors
- Retrospectively with cumulative effect of initially applying the standard recognized at the date of initial application (Cumulative catch - up approach) The effective date for adoption of Ind AS 115 is financial periods beginning on or after April 1, 2018.
The Company is currently assessing the impact of application of Ind AS 115 on Company''s financial statements.
b Amendment to Ind AS 12 - ''Income Taxes'':
The amendments clarify the requirement for recognizing deferred tax assets on unrealized losses on debt instruments that are measured at fair value. The amendment also clarify certain other aspects of accounting for deferred tax assets. The changes will not have any material impact on the financial statements of the Company.
c Amendment to Ind AS 40 - ''Investment Property'':
The amendments clarify transfers of investment property to or from the portfolio in the case of a change of use. The changes will not have any material impact on the financial statements of the Company.
10 Reconciliation of total equity as at March 31, 2017 and April 01, 2016
1 Ind AS 101 (First-time Adoption of Indian Accounting Standards) provides a suitable starting point for accounting in accordance with Ind AS and is required to be mandatorily followed by first-time adopters. The Company has prepared the Opening Balance Sheet as per Ind AS of April 01, 2016 (the transition date) by :
a recognizing all assets and liabilities whose recognition is required by Ind AS, b not recognizing items of assets or liabilities which are not permitted by Ind AS,
c reclassifying items from previous Generally Accepted Accounting Principles (GAAP) to Ind AS required under Ind AS, and d applying Ind AS in measurement of recognized assets and liabilities.
The impact of transition has been provided in the Opening Reserves as at April 01, 2016. (Refer note 2B below)
Notes
3 Ind AS 101 mandates certain exceptions and allows first-time adopters exemptions from the retrospective application of certain requirements under
Ind AS. The Company has applied the following exemptions in the financial statements:
a Property, plant and equipment and intangible assets were carried in the Balance Sheet prepared in accordance with previous GAAP on March 31, 2016. Under Ind AS, the Company has elected to regard such carrying values as deemed cost at the date of transition.
b The Company has recognized loss allowance on trade receivables at the date of transition and at each reporting date thereafter based on lifetime expected credit losses.
4 In addition to the above, the principal adjustments made by the Company in restating its previous GAAP financial statements, including the Balance
Sheet as at April 01, 2016 and the financial statements as at and for the year ended March 31, 2017 are detailed below :
a Under previous GAAP actuarial gains and losses related to the defined benefit schemes for gratuity and pension plans and liabilities towards employee leave encashment were recognized in profit or loss. Under Ind AS, the actuarial gains and losses form part of remeasurement of the net defined benefit liability / asset which is recognized in OCI. Consequently, the tax effect of the same has also been recognized in OCI instead of profit and loss.
b Under previous GAAP non-current investment in equity instruments were stated at cost. Where applicable, provision was made to recognize a decline, other than temporary, in valuation of such investments. Under Ind AS, financial assets in equity instruments (other than investment in subsidiaries, joint ventures and associates) have been classified as fair value through OCI through an irrevocable election at the time of transition.
Mar 31, 2017
d) Terms / rights attached to Equity Shares:
The Company has only one class of equity shares having a face value of Rs.2/- per share. Each holder of equity share is entitled to one vote per share. The dividend proposed by the Board of Directors, if any, is subject to the approval of shareholders in the ensuing Annual General Meeting except interim dividend.
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 shareholders.
e) Details of shares held by shareholders holding more than 5% of aggregate shares in the company.
The Board of Directors at their meeting held on May 18, 2017, have recommended Final Dividend of Rs.2.40 (1.20%) per share of Rs.2/- each for the Financial Year 2016-17 on enhanced Equity Share Capital post Bonus Issue, subject to approval of Shareholders of the Company. Total dividend, post bonus issue including interim dividend for the Financial Year 2016-17 is Rs. 1647.20 lakhs (170%) as against Rs.775.15 lakhs (160%) paid to Financial Year 2015-16. Pursuant to amendment in Accounting Standard (AS)-4, "Contingencies and Events Occuring After the Balance Sheet Date", declaration of dividends to shareholders after the balance sheet date is not required to be recognized as a liability as at the balance sheet date.
1. RESEARCH AND DEVELOPMENT EXPENDITURE
Expenses on Research and Development during the year under various heads amount to Rs.340.49 Lakhs (Previous year Rs.313.99 Lakhs)
2. Confirmations have not been received from some of the Debtors, Creditors and Depositors.
3. Corporate Social Responsibility
As per section of 135 of the Companies Act, 2013 (the Act) a company meeting the applicability threshold, needs to spend at least 2% of its average net profit for the immediately preceding three financial years (calculated in accordance with the provisions of Section 198 of the Act) on corporate social responsibility (CSR) activities/programs in terms of its CSR policy and Schedule VII of the Act. The areas for CSR activities undertaken by the Company are Health, Medical aid, and Education grants etc. The Company has formed its CSR Committee as per the Act and Rules thereon. The Company has incurred CSR Expenditure of Rs.100 Lakhs (Previous year Rs.89 Lakhs) by way of contribution to corpus of Ratanchand Hirachand Foundation, a Section 8 Company promoted by the Promoters of the Company for undertaking CSR activities on behalf of the Company as per CSR Policy read with Schedule VII of the Act. The report on CSR activities and CSR expenditure incurred by the Company for the Financial Year 2016-17 is given in the Directors'' Report.
NOTES: 4 BUSINESS SEGMENTS
The Company has considered "Business Segment" as the primary reporting segment for disclosure. The products included in each of the reported domestic business segments are as follows:
a. Construction contracts including Water Supply Schemes, Pipes Supply & Laying Projects.
b. Others include Railway Sleepers, Air Rifles, Development of Land and Other Miscellaneous items.
Segment revenue relating to each of the above domestic business segment includes income from services provided, where applicable. The above business segments have been identified considering:
5. The nature of products & services
6. The differing risks & returns
7. There are no inter segment sales.
8. Since the Company does not have any significant business outside India there are no reportable geographic segments.
VII Accumulated compensated absences (non vesting)
Actuarial valuation of sick leave has been made on March 31, 2017. Provision in respect of this benefit amounts to Rs.19.25 Lakhs for the financial year ending March 31, 2017. (Previous year Rs.12.57 Lakhs.)
VIII Provident Fund
The Company contributed Rs.331.35 Lakhs towards Provident Fund during the year ended March 31, 2017. (Previous year Rs.295.36 Lakhs.)
9. Other operating income includes Rs.7.13 Lakhs on account of subsidy for VAT/LBT/Power during the year (Previous year Rs.56.78 lakhs)
10. In the opinion of the Board, current assets, loans and advances are approximately of the value stated, if realized in the ordinary course of business.
11. Figures for Previous Year have been regrouped, wherever necessary.
Mar 31, 2016
1 DEFERRED TAX (ASSETS) AND LIABILITIES (NET)
Deferred tax liability for the period ended March 31, 2016 has been provided on the estimated tax computation for the year. Major components of deferred tax assets and liabilities arising on account of timing differences are:
2. Related party disclosures A. Names of Related Parties & Nature of Relationship Sr Names of Related Party Nature of Relationship
No_
i Ratanchand Investment Pvt. Ltd. Ultimate Holding Company
ii IHP Finvest Ltd. Promoter Holding Company (Holding 65.92% in Equity)
iii Mr. Rajas R. Doshi (Chairman & Managing Director)
iv Mr. Mayur R. Doshi I (Executive Director)
''Key Management Personnel
v Mr. S. M. Mandke
(Company Secretary)
vi Mr. M. S. Rajadhyaksha (Chief Financial Officer)
vii Ms. Jyoti R. Doshi. (Director)
viii Mr. Aditya R. Doshi Relatives of Key Management Personnel
ix Ms. Anushree M. Doshi
x Mobile Systems India Pvt. Ltd.
J- Companies in which control exists directly / indirectly
xi Raj Jyoti Trading & Investment Pvt. Ltd. J
xii Ms. Anima B. Kapadia (Director) Other Related Party
xiii Walchand Hirachand Foundation
xiv Ratanchand Hirachand Foundation > Section 8 of Companies Act, 2013
xv Smt. Pramila Shantilal Shah Charity Foundation. s
xvi Verifacts Services Pvt. Ltd. Company in which a director is interested.
3 RESEARCH AND DEVELOPMENT EXPENDITURE
Expenses on Research and Development during the year under various heads amount to '' 313.99 lacs (Previous year '' 298.09 lacs)
4. Confirmations have not been received from some of the Debtors, Creditors and Depositors.
5. STOCK IN TRADE - LAND
During the previous year, the Company had converted Industrial land admeasuring about 27,504.78 sq. mtrs. approximately at Badarpur, New Delhi, hitherto held as Fixed assets into Stock in trade on November 12, 2014 at a book value of Rs, 399.25 lacs.
6. Corporate Social Responsibility
As per Section 135 of the Companies Act, 2013 (the Act) a company within the applicability threshold, needs to spend at least 2% of its average net profit for the immediately preceding three financial years (calculated in accordance with the provisions of Section 198 of the Act) on Corporate Social Responsibility (CSR) activities/programs in terms of its CSR policy and Schedule VII of the Act. The areas for CSR activities undertaken by the Company are Health, Medical aid and Education grants etc. The Company has formed its CSR Committee as per the Act and Rules thereon. The Company has incurred CSR Expenditure of Rs, 89 Lacs (Previous year Rs, 55 Lacs) by way of contribution to corpus of Ratanchand Hirachand Foundation, a Section 8 Company promoted by the Promoters of the Company for undertaking CSR activities on behalf of the Company as per CSR Policy read with Schedule VII of the Act. The report on CSR activities and CSR expenditure incurred by the Company for the Financial Year 2015-16 is given in the Directors'' Report.
NOTES:
1 BUSINESS SEGMENTS
The Company has considered âBusiness Segmentâ as the primary reporting segment for disclosure. The products included in each of the reported domestic business segments are as follows:
a. Construction contracts including Water Supply Schemes, Pipes Supply & Laying Projects.
b. Others include Railway Sleepers, Air Rifles, Development of Land and Other Miscellaneous items.
7 During the previous year, the Company had re-assessed its liability towards interest on income tax provision pertaining to earlier years pursuant to amendment to Section 220 of the Income Tax Act, 1961. Due to this re-assessment and based on legal advice obtained, an amount of Rs, 312.35 lacs towards interest provision of earlier years had been written back and disclosed as an exceptional item during the previous year.
8. The Company has been recognizing profits of projects after execution of 10% of contract value. This policy is suitable for average contract value of Rs, 70 Crores which Company has generally been receiving. During the current financial year, the Company received two large project orders, one of them being larger than Rs, 500 Crores. During the quarter ended March 31, 2016 the company commenced execution of both projects. To reflect proper margin quarter to quarter, the Company has decided to recognize profit on project order value exceeding Rs, 500 Crores at 7.5% of project contract value and continue to recognize profits of projects smaller than Rs, 500 Crores on execution of 10% of project value. The company believes that this change provides a more appropriate basis for recognition of profit on large orders. Due to this change, profit after tax is higher by Rs, 692.43 lacs being proponed from future accounting periods to the current quarter and year. No similar large order has been executed in the previous year.
9. In the opinion of the Board, current assets, loans and advances are approximately of the value stated, if realized in the ordinary course of business.
10. Figures for Previous Year have been regrouped, wherever necessary.
Mar 31, 2015
In Lacs
2014-15 2013-14
1.1 CONTINGENT LIABILITIES AND COMMITMENTS
(TO THE EXTENT NOT PROVIDED FOR) :
1 Contingent Liabilities
a) Guarantees given by the Banks 30177.36 26040.57
b) Claims against the company not
acknowledged as debts 136.27 136.27
c) Sales Tax / VAT demand under appeal 3350.94 588.25
d) Demands raised by Excise department
excluding interest, if any,
leviable thereon. 1495.21 1497.76
e) Service Tax demand under appeal 11468.31 11468.31
The Management believes that the outcome
of any pending litigation will not have
a material adverse effect on the Company''s
financial position and the results of
operations.
2 Capital Commitments
Commitments for Capital Expenditure
are estimated at 442.37 267.62
2.1 RESEARCH AND DEVELOPMENT EXPENDITURE
Expenses on research and Development during the year under various
heads amount to Rs. 298.09 Lacs (Previous year Rs. 279.23 Lacs)
2.2 Confirmations have not been received from some of the Debtors,
Creditors and Depositors.
2.3 STOCK-IN-TRADE-LAND
a. During the year, the Company has converted Industrial land
admeasuring about 27,504.78 sq. meters approximately at Badarpur, New
Delhi, hitherto held as Fixed assets in to Stock in Trade on 12th
November, 2014 at a book value of Rs. 399.25 Lacs.
b. During the previous year, the Company had converted its industrial
land admeasuring about 48,288 sq. meters approximately at Hadapsar
Pune, hitherto held as Fixed Assets in to Stock in Trade w.e.f. 31st
July, 2013 at a book value of Rs. 1.32 Lacs.
c. During the previous year, the Company had converted land admeasuring
about 14,070 sq. meters approximately at Wadala Mumbai, hitherto held
as Fixed assets in to Stock in Trade w.e.f. 31st October, 2013 at a
book value of Rs. 0.70 Lacs.
2.4 The Company has incurred an expense of Rs. 55.00 Lacs towards
Corporate Social Responsibility by way of contributing the amount to
Ratanchand Hirachand Foundation during the year.
NOTES:
1 BUSINESS SEGMENTS
The Company has considered "Business Segment" as the primary reporting
segment for disclosure.The products included in each of the reported
domestic business segments are as follows:
a. Construction contracts including Water Supply Schemes, Pipes Supply
& Laying Projects
b. Others include Railway Sleepers, Air Rifles, Development of Land and
Other Miscellaneous items.
Segment revenue relating to each of the above domestic business segment
includes income from services provided, where applicable. The above
business segments have been identified considering:
1. The nature of products & service
2. The differing risks & returns
2 There are no inter segment sales.
3 Since the Company does not have any significant business outside
India there are no reportable geographic segments.
VI Accumulated compensated absences (non vesting)
Actuarial valuation of sick leave has been made on 31-03-2015.
Provision in respect of this benefit amounts to Rs. 9.17 Lacs for the
financial year ending 31-03-2015. (Previous year Rs. 9.73 Lacs.)
Gratuity cost, as disclosed above, is included under Employee benefit
expenses.
VII Provident Fund
The Company contributed Rs. 269.11 Lacs towards Provident Fund during the
year ended 31st March 2015. (Previous year Rs. 229.27 Lacs.)
2.5 During the year, the Company has re-assessed its liability towards
interest on income tax provision pertaining to earlier years pursuant
to amendment to section 220 of the Income Tax Act 1961. Due to this
re-assessment and based on legal advice obtained, an amount of Rs. 312.35
lakhs towards interest provision of earlier years has been written back
and disclosed as an exceptional item during the year.
2.6 The Company has charged off an amount of Rs. 25.33 Lacs (net of
deferred tax of Rs. 13.04 Lacs) in the opening retained earnings
pertaining to assets whose balance useful life was Nil as at 1st
April,2014, pursuant to such adoption, in accordance with transitional
provisions as per note 7(b) to Part C of Schedule II of the Companies
Act, 2013,
2.7 The depreciation for the year is higher by Rs. 305.36 Lacs, pursuant
to adoption of useful lives as per Part C of Schedule II of the
Companies Act, 2013.
2.8 In the opinion of the Board, none of the assets other than Fixed
Assets and Non-Current Investments have a value on realisation in the
ordinary course of business lower than at least equal to the amount at
which they are stated.
2.9 Figures for Previous Year have been regrouped, wherever necessary.
Mar 31, 2014
Rs. in lacs
2013-14 2012-13
1.1 CONTINGENT LIABILITIES AND
COMMITMENTS (TO THE EXTENT NOT
PROVIDED FOR) :
1 Contingent Liabilities
a) Guarantees given by the Banks 26040.57 21942.51
b) Performance Corporate guarantees
given by the Company to various
contractees. - 963.76
c) Claims against the company not
acknowledged as debts 136.27 120.59
d) Sales Tax/Vat demand excluding
those recoverable from customers
for the years 1980-81 to 588.25 537.84
2013-14 under appeal.
e) Demands raised by Excise department
excluding interest, if any,
leviable thereon. 1497.76 1494.17
f) Service Tax demand excluding those
recoverable from customers upto the
Year 2013-14 under 11468.31 10684.32
appeal.
1.2 RESEARCH AND DEVELOPMENT ExPENDITURE
Expenses on Research and Development during the year under various
heads amount to Rs. 279.23 lacs (Previous year Rs. 256.75 lacs)
1.3 Confirmations have not been received from some of the Debtors,
Creditors and Depositors.
1.4 a. The Company has converted its industrial land admeasuring
about 48,288 sq. meters approximately at Hadapsar Pune, hitherto held
as Fixed Assets in to Stock in Trade w.e.f. 31st July, 2013 at a book
value of Rs. 1,32,269.50.
b. The Company has converted its land admeasuring about 14,070 sq.
mtrs. approximately at Wadala Mumbai, hitherto held as Fixed assets
into Stock-in-trade w.e.f. 31st October, 2013 at a book value of Rs.
69,709.49.
1.5 Amount of Rs. 20.00 lacs (Previous year Rs. 33.50 lacs) is paid
towards Legal and Professional fees to a solicitor firm in which, one
of the director is a sole proprietor.
1.6 In the opinion of the Board, none of the assets other than Fixed
Assets and Non-Current Investments have a value on realisation in the
ordinary course of business lower than at least equal to the amount at
which they are stated.
1.7 Figures for Previous Year have been regrouped, wherever necessary.
Mar 31, 2013
Rs. in lacs
Particulars 2012-13 2011-12
1.1 Contingent liabilities
and commitments (to the
extent not provided for)
1 Contingent Liabilities
a) Guarantees given by
the Banks 21942.51 17281.31
b) Performance Corporate
guarantees given by the
Company to various
contractees. 963.76 963.76
c) Claims against the
company not acknowledged as debts 120.59 120.59
d) Sales Tax /VAT demand excluding those recoverable from customers for
the years 1980-81 to 537.84 568.20 2012-13 under appeal.
e) Demands raised by Excise department excluding interest, if any,
leviable thereon. 1494.17 1649.72
f) Service Tax demand excluding those recoverable from customers upto
the Year 2012-13 under 10684.32 3576.68 appeal.
1.2 Research and Development Expenditure
Expenses on Research & Development during the year under various heads
amount to Rs. 256.75 lacs (previous year Rs. 236.66 lacs)
1.3 Confirmations have not been received from some of the Debtors,
Creditors and Depositors.
1.4 During the year, the Company has received from Government of
Andhra Predesh for Chilamathur factory, under Industrial Investment
Promotion Policy Rs.140.65 lacs towards reimbursement of sales tax for
the year 2009-10 to 2011-12 and Rs.10.38 lacs towards reimbursement of
power cost for the year 2011-12 to 2012-13. These amounts have been
included under the head " Other Operating Income".
1.5 In the opinion of the Board, none of the assets other than Fixed
Assets and Non-Current Investments have a value on realisation in the
ordinary course of business lower than at least equal to the amount at
which they are stated.
1.6 Figures for Previous Year have been regrouped, wherever
necessary.
Mar 31, 2012
1.1 CONTINGENT LIABILITIES AND COMMITMENTS (TO THE EXTENT NOT PROVIDED
FOR) :
Rs.in Lacs
2011-12 2010-11
Particulars
1 Contingent Liabilities
a) Guarantees given by the Banks 17281.31 13649.99
b) Performance Corporate
guarantees given by the
Company to various contractees. 963.76 807.67
c) Claims against the company
not acknowledged as debts 120.59 120.59
d) Additional Sales Tax demand
excluding Rs902.26 lacs (Previous year
Rs905.24 lacs) recoverable from
customers for the years 1980-81
to 2009-10 under appeal. 568.20 506.32
e) Demands raised by Excise
department excluding interest, if any,
leviable thereon. 1649.72 1877.10
f) Additional Service Tax demand
excluding those recoverable from
customers upto the Year 2010-11
under appeal. 3576.68 3488.18
g) The Company had received notice
under section 148 of the Income Tax
Act 1961 for reopening of assessment
for the year ended 31st March 2004
in respect of its investments made
in long term Capital Gains Bonds.
The Company has challenged re-
opening of assessment by filing
a writ petition in the High Court
of Bombay. The Writ Petition has been
dismissed by the High Court of
Bombay. The Company has filed Special
Leave Petition (SLP) in the Supreme
Court of India, which is pending
for admission. Meanwhile, Income
Tax Department has began the
assessment
proceeding, however, no demand of
income tax has been received in this
matter till date. - -
2 Capital Commitments
Commitments for Capital Expenditure
are estimated at 298.31 -
3 other Disclosures
In respect of fraud at two factories
reported in the last annual
report, following is the position
in current year.
a) Out of Rs 17.39 lacs, Rs 15.05
lacs has been recovered/ adjusted upto
May 2010. One of the party has
challenged the recovery/
adjustments and
the matter is subjudice. The
criminal complaints against
the parties
and ex-employees involved in
the fraud are pending in the
court and for
balance amount legal action
has been initiated.
b) As reported in the last report
the misappropriated amount involved
is Rs 44.82 lacs. The proceedings
of the Criminal case filed against the
ex-employee of the Company have
been concluded and the accused was
convicted and awarded punishment
of 3 years imprisonment and was
released, as the accused was in
judicial custody for 3 years 4
months.
For recovery of aforesaid amount,
civil suit proceedings are in
progress.
1.2 Research and Developement Expenditure:
Expenses on Research and Developement during the year under various
heads amount to Rs236.66 lacs (Previous year Rs 203.55 lacs)
1.3 Confirmations have not been received from some of the Debtors,
Creditors and Depositors.
NOTES:
1 business segments
The Company has considered "business segment as the primary reporting
segment for disclosure. The products included in each of the reported
domestic business segments are as follows:
a. Construction contracts including water supply schemes, pipes supply
& laying projects.
b. Others include Railway Sleepers, Air Rifles and Other Miscellaneous
items.
Segment revenue relating to each of the above domestic business
segments includes income from services provided, wherever applicable.
The above business segments have been identified considering:
1. The nature of products & services
2. The differing risks & returns
2 There are no inter segment sales.
3 Since the Company does not have any significant business outside
India there are no reportable geographic segments.
1.4 Employee Benefits (Continued)
Accumulated compensated absences (non vesting)
Actuarial valuation of sick leave has been made on 31-03-2012.
Provision in respect of this benefit amounts to Rs 13.86 lacs for the
financial year ending 31-03-2012. (Previous year Rs 10.18 lacs.)
Gratuity cost, as disclosed above, is included under Employee benefit
expenses
VI provident Fund
The Company contributed Rs 40.79 lacs towards Provident Fund during the
year ended 31st March 2012. (Previous year Rs 46.24 lacs.)
1.5 Remuneration:
Remuneration paid to Chairman & Managing Director is in excess of the
limits specified in Schedule XIII of the Companies Act, 1956 by Rs 69
lacs. The Company has made an application seeking approval from Central
Government. Approval is awaited. The approval for the same from the
shareholders will be sought in ensuing Annual General Meeting.
1.6 Current Liabilities include Rs 1.99 lacs towards unclaimed amounts
of preference shares redeemed and Rs 0.55 lacs towards unclaimed
proceeds from sale of fractional shares issued pursuant to the bonus
issue made by the Company in the year 2005-06.
1.7 In the opinion of the Board, all assets other than Fixed Assets
and Non-Current Investments have a value on realisation in the ordinary
course of business at least to the amount at which they are stated.
1.8 The financial statements for the year ended March 31, 2011 had
been prepared as per the then applicable, pre-revised Schedule VI to
the Companies Act, 1956. Consequent to the notifications of Revised
Schedule VI under the Companies Act, 1956, the financial statements for
the year ended March 31, 2012 are prepared as per Revised Schedule VI.
Accordingly, the previous year figures have also been reclassified to
conform to this year's classification. The adoption of Revised Schedule
VI for previous year figures does not impact recognition and
measurement principles followed for preparation of financial
statements.
Mar 31, 2011
2010-11 2009-10
Rs Lacs Rs. Lacs
1 CONTINGENT LIABILITIES:
a) Guarantees given by the
Banks 13649.99 15483.74
b) Claims against the company
not acknowledged as debts 120.59 121.03
c) Additional Sales Tax demand
excluding Rs. 902.26 Lacs (Previous
year Rs. 905.24 Lacs) recoverable
from customers for the years 1980-81
to 2009-10 under appeal. 506.32 614.24
d) Demands raised by Excise
department excluding interest,
if any, leviable thereon. 1877.10 2063.67
e) Additional Service Tax demand
excluding those recoverable from
customers for the Year 2004-05
under appeal. 3488.18 2150.90
f) During the year the Company has received notice U/S 148 of Income
Tax Act,1961 for reopening of assessment for the year ended 31 st March
2004, in respect of its investments made in long term capital gains
bonds. No demand of income tax has been received in this matter till
date.
2 Expenses on Research & Development during the year included under
various heads, amounts to ` 203.55 Lacs (Previous year ` 196.49 Lacs).
3 Confirmations have not been received from some of the Debtors,
Creditors and Depositors.
1 BUSINESS SEGMENTS
The Company has considered Ãbusiness segmentà as the primary reporting
segment for disclosure. The products included in each of the reported
domestic business segments are as follows:
a. Construction contracts including water supply schemes, pipes supply
& laying projects
b. Others include Railway Sleepers, Air Rifles and Other Miscellaneous
items.
Segment revenue relating to each of the above domestic business
segments includes income from services provided, where applicable. The
above business segments have been identified considering:
1. The nature of products & service
2. The differing risks & returns
2 There are no inter segment sales.
3 Since the company does not have any significant business outside
India there are no reportable geographic segments.
4 Related party disclosures, as required by AS 18
A. Names of Related Parties & Nature of Relationship
i) Ratanchand Investment
Pvt. Ltd. : Ultimate Holding Company
ii) IHP Finvest Ltd : Promoter Holding Company
(Holding 65.92% in Equity)
iii) Mr.Rajas R. Doshi : Key Management Personnel
(Chairman & Managing Director)
iv) Mrs.Jyoti R. Doshi
(Director) : Relatives of Key Management
Personnel
Mr.Aditya R. Doshi
Mr.Mayur R. Doshi (Executive)
v) Mobile Systems India Pvt.
Ltd. : Companies in which control exists
directly/ indirectly
Raj Jyoti Trading & Investment
Pvt. Ltd.
vi) Walchand Hirachand
Foundation : Other Related Party
Ratanchand Hirachand
Foundation
(Formed U/s 25 of the
Companies Act, 1956)
5 The Company has entered into Joint Ventures for executing various
works. The details are as under:
I M/s.Koya & Company Construction Pvt. Ltd.,(JV), Hyderabad
Augmentation & Water Supply to Hyderabad Metropolitan area from River
Krishna through SLB (Madhava Reddy Canal) for the PACKAGE-1,
Manufacturing, supplying, lowering, testing and commissioning of 2200
diameter MS Pumping Main with in lining and out-coating with Cement
Mortar from WTP at Kodandpur to the Clear Water Reservoir at
Nasaralapally.
II M/s.Bhoorathnam Construction Co. (P) Ltd.
Augmentation & Water Supply to Hyderabad Metropolitan area from River
Krishna through SLB (Madhava Reddy Canal) for PACKAGE-II,
Manufacturing, supplying, lowering, testing and commissioning of 2200mm
diameter MS Pumping Main with in-lining and out-coating with Cement
Mortar from Clear Water Reservoir at Godakondla along Nagarjunasagar -
Hyderabad Road from Km 82/2 to Km 59/6.
III M/s. The Indian Hume Pipe Co. Ltd.
Combined water supply scheme to Bellampally and Mandamarry under HUDCO
Phase-III consisting of (1) Construction of 9.00 m dia intake well cum
pump house 1 No (2) 600mm dia D.I.D/F Connecting main (3) 6 Nos. of
3.00 M dia infiltration wells (4) 600mm dia RCC NP3 class pipes
infiltration gallery 250m long (5) Providing 500mm dia PSC field test
pressure of 10 KSC main for common sump at Municipal office (6)
Providing 500mm dia PSC field test pressure of 12 KSC pumping main from
common sump at Municipal office Mandamarry to Junction Point in
Bellampally (Package I)
V M/s.KCCPL-IHP-BRC-TAIPPL-KBL
Construction of Pump House, Hydro Mechanical Works and Electro
Mechanical works of Guthpa Lift Irrigation Scheme, to Lift 540 cusecs
of water from river Godavari at Ummeda (V), Nandipet (M) and to deliver
into Nizam Sagar Project Main Canal and D/74 on EPC Turnkey Basis
System.
VII M/s. The Indian Hume Pipe Co. Ltd.
Construction and commissioning on turnkey basis including one year
maintenance of Soganur Lift Irrigation M I Scheme on right bank of
Tungabadra river with 2 stage pumping including construction of storage
tank near Chinnakohiliki (V) Yemmiganur (M) Kurnool District.
VIII M/s. The Indian Hume Pipe Co. Ltd.
Construction and commissioning on turnkey basis including one year
maintenance of Pulchintha Lift Irrigation M I Scheme on right bank of
Tungabadra river with 2 stage pumping including construction of storage
tank near Pulchintha (V) Nandavaram (M) Kurnool District.
IX M/s.TAIPPL-IHP-KCCPL-BRCPL (JV)
Krishna Drinking Water Supply Project Phase II - Manufacturing,
Supplying, Delivering, lowering, laying, jointing, testing and
commissioning of 2375mm dia MS pumping main with cement mortar factory
inlining and out-coating from CWR at Nasarlapally to CWR at Goddkondla
(along Nagarjunasagar-Hyderabad road from 82/2 Km to 59/6 Km including
manning and operation for a period of 24 months (Package II).
X M/s.IHP-KCCPL-BRCPL-TAIPPL (JV)
Manufacturing, Supplying, delivering, lowering, laying, jointing,
testing and commissioning of 2200mm dia MS Gravity main with cement
mortar factory inlining and out-coating from MBT at Gungal to TBR at
Sahebnagar (along Nagarjunasagar-Hyderabad road from Km 40/2 to
10/2 Km including manning and operation for a period of 24 months
(Package IV).
XI M/s.Shradha IHP Joint Venture
Padmalaya Lift Irrigation Scheme: Designing, planning, construction of
Dam at Padmalaya-II, Taluka Erandol, Dist. Jalgaon alongwith or
appurtenant works & designing, planning and construction of intake
well, connecting pipeline, jackwell pumphouse, sumpwell, manufacturing
and installation of pumping machinery, necessary electrical
accessories, electrical service station including rising main and
commissioning it for shree Padmalaya Sinchan Yojana of Taluka Erandole,
Dist. Jalgaon on Turnkey basis.
XIII M/s.BRCPL IHP Vishwa Joint Ventures
Manufacturing, supply, lowering, laying, jointing, testing and
commissioning of Duplicate South intercepting Sewer Main (Dup-Sis) with
2000 mm dia RCC NP4 class pipes using sulphate resistance, cement from
Saroornagar Nalah I & D site to proposed STP at Nagole along river Musi
(Dup SIS Main-Package 3)
XIV M/s.IHP BRCPL Vishwa (JV)
Manufacturing, supply, lowering, laying, jointing, testing and commissioning
of Duplicate South intercepting Sewer Main (Dup-SIS) with 1800
mm dia RCC NP4 class pipes using sulphate resistant cement from Chaderghat
bridge to Saroornagar Nalah I & D site along river Musi (Dup
SIS Main-Package 2)
XV M/s. The Indian Hume Pipe Co. Ltd.
Manufacturing, supply, lowering, laying, jointing, testing and
commissioning of 900mm dia Mild Steel Pumping Main with inlining and
out- coating with cement mortar from Town Service Reservoir to Kommadi
Junction under Greater Vishakhapatnam Water Supply Improvement Scheme.
XVI M/s. The Indian Hume Pipe Co. Ltd., JV with Ch.V.V.Subba Rao
Augmentation of drinking water supply to Gajuwaka Area in Vishakhapatnam
under submission on Urban Infrastructure and Governance under
Jawaharlal Nehru National Urban Renewal Mission (JNNURM).
XVII NCC-MEIL-IHP (JV)
Construction of Jack well, providing MS Raw Water conduit to earthern
bund of Dharmasagar Reservoir by Tunnelling and Jacking, MS/ NBWSC Raw
Water Gravity Mains, DI/BWSC Pumping Mains and Railway Crossing
arrangements, Additional off take arrangements on Kaktiya Canal, Raw
Water Pump House and Clear Water Pump House alongwith Pump sets, Water
Treatment Plants at three locations, Raw Water Sumps and Clear Water
Sumps, RCC ELSRÃs and DI & HDPE distribution lines in Warangal
Municipal Corporation.
XVIII IHP-Vishva-MCC (JV)
Rehabilitation, strengthening and improvement of Sewerage System in old
city area on South of Musi in S11 catchment Zone II by laying mains,
sub-mains, laterals and transfer of house service connections including
manufacturing, supply of 150mm/200mm/300mm dia SWG pipes and
50mm/400mm/450mm/500mm/600mm/700mm/800mm/900mm/ 1100mm/ 1200mm/1400mm
dia RCC NP3 pipes with SR cement including lowering, laying, jointing,
testing and commissioning of sewers or turnkey bails under JNNURM
Package II.
XIX IHP-MEIL-KCCPL-BRCPL-TAIPPL (JV)
Manufacturing, supplying, lowering, laying, jointing, testing and
commissioning of 2200mm dia MS Pumping Main with cement mortar factory
inlining and out-coating and other appurtenances from proposed intake
well near Old Madhavaram on foreshore of Somasila Reservoir to the
proposed sump at Kanumalonipalli (On Kadappa-Rajampet Highway)
including Manning & Operation for a period of 24 months (defect
liability period) - Package I.
XX IHP-FPL (JV)
Survey, Investigation, Designs, Drawings, Estimation, Construction and
commissioning on Turnkey basis including maintenance for 15 years
(including 2 years liability period) of Pulikanuma LI Scheme on right
bank of Tungabhadra river near Satanur (V)Kosigi (M) in Kurnool district
with two stage pumping consisting of (a) construction of Approach Channel
(b)Jack-well cum Pump house including Manufacture, supply,erection of pumps,
motors, panels, soft Starters, capacitors, E.O.T & H.O.T Cranes and all other
Electrical Equipment (c)33/11 KV Sub Stations (d)H T Power Lines (e)
Pressure Mains (f) Cisterns (g)Reservoir /Storage tank of capacity 1.232
TMC including Head Regulator and Surplus arrangements (h)Approach and
Link Canal to join the T.B.P.L.L.C main canal @KM 270.00etc. Complete.
6 Current Liabilities include ` 1.99 Lacs towards unclaimed amounts of
preference shares redeemed and Rs. 0.55 Lacs towards unclaimed proceeds
from sale of fractional shares issued pursuant to the bonus issue made
by the Company in the year 2005-06.
7 Figures for Previous Year have been regrouped, wherever necessary.
Mar 31, 2010
2009-10 2008-09
Rs.Lacs Rs.Lacs
1 CONTINGENT LIABILITIES:
a) Guarantees given by the Banks 15483.74 12687.73
b) Claims against the company not
acknowledged as debts 121.03 178.36
c) Additional Sales Tax demand
excluding Rs.902.26 lacs (Previous
year Rs.905.24 lacs) recoverable from
customers for the years 1980-81 to
2009-10 under appeal. 614.74 322.12
d) Demands raised by Excise
department excluding interest,
if any, leviable thereon. 2063.67 2244.40
e) Additional Service Tax demand
excluding those recoverable from
customers for the 2150.90 1889.17
Year 2004-05 under appeal.
2 Expenses on Research & Development during the year included under
various heads, amounts to Rs.196.49 lacs (Previous year Rs.182.88
lacs).
3 Confirmations have not been received from some of the Debtors,
Creditors and Depositors.
4 Related party disclosures, as required by AS 18
A. Names of Related Parties & Nature of Relationship
i) Ratanchand Investment Pvt. Ltd. Ultimate Holding Company
ii) IHP Finvest Ltd Promoter Holding Company (Holding 65.92% in Equity)
iii) Mr.Rajas R. Doshi Key Management Personnel
(Chairman & Managing Director) iv) Mrs. Jyoti R. Doshi (Director)
Relatives of Key Management Personnel
Mr. Aditya R. Doshi
Mr. Mayur R. Doshi (Executive) v) Mobile Systems India Pvt. Ltd.
Companies in which control exists directly/ indirectly
Raj Jyoti Trading & Investment Pvt. Ltd. vi) Walchand Foundation Other
Related Party
Ratanchand Foundation
(Formed U/s 25 of the Companies Act, 1956)
III M/s. The Indian Hume Pipe Co. Ltd.
Combined water supply scheme to Bellampally and Mandamarry under HUDCO
Phase-Ill consisting of (1) Construction of 9.00 m dia intake well cum
pump house 1 No (2) 600mm dia D.I.D/F Connecting main (3) 6 Nos. of
3.00 M dia infiltration wells (4) 600mm dia RCC NP3 class pipes
infiltration gallery 250m long (5) Providing 500mm dia PSC field test
pressure of 10 KSC main for common sump at Municipal office (6)
Providing 500mm dia PSC field test pressure of 12 KSC pumping main from
common sump at Municipal office Mandamarry to Junction Point in
Bellampally (Package I)
5 During the financial year 2008-09, the Companys claim U/s 80IA of
the Income Tax Act 1961 pertaining to F.Y2002-03 was allowed by the
Income Tax Appellate Tribunal Mumbai, as a result the Company had taken
credit for tax refund of Rs.398.53 lacs and interest of Rs.122.85 lacs.
The Income Tax (IT) dept. preferred an appeal against this order before
the Honble High Court, Mumbai. As a matter of abundant caution, the
Company had created "General Reserve No.ll" equivalent to Income Tax
Refund. The Finance Act 2009 retrospectively amended Section 80IA to
withdraw relief under this section. Hence, the Company has made
provision during March 2010 quarter of Rs.397.89 lacs towards tax
refund which has been shown under Prior Years Adjustment - Provision
for Taxation of Earlier Years and interest thereon of Rs.185.16 lacs.
Consequently the amount of Rs.400.00 lacs previously apportioned to
"General Reserve II" has been transferred to the Profit & Loss A/c.
6 Figures for Previous Year have been regrouped, wherever necessary.