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Notes to Accounts of Martin Burn Ltd.

Sep 30, 2014

1. (a) The amount of rent payable by the company to Kolkata Port Trust in respect of Kidderpore Stock Yard is under dispute and the matter is sub-judice with the Hon''ble District Judge, Alipore Judges Court, Kolkata. The Company had been paying rent to Kolkata Port Trust at the demanded rate without prejudice since February, 2007 by cheque, which had since been accepted by Kolkata Port Trust and duly encashed till July, 2011, when the outstanding came down to Rs. 60,271,802.80.

In the month of August, 2011 Port Trust revised their demand for Rent upwardly to Rs. 765,315.00 per month as against their earlier demand of Rs. 419,640.00 per month. The Company, thereafter, stopped paying the rent and submitted before the Hon''ble Court for inclusion of this matter in the original petition. Hence, no further provision for rent from August, 2011 amounting to Rs. 15,946,320/- has been made in the accounts till 30.09.2014.

(b) The company hiked the rent and service charges on the tenants at the above premises w.e.f. August, 2011, which was disputed by the tenants. No rent / service charges from August, 2011 has been received from the tenants and hence, has not been accounted for, which aggregate to Rs. 7,261,648 towards rent and Rs. 26,643,890 towards service charges till 30.09.2014.

No development in the matter has taken place during the period 30th September, 2014.

2. Certain credit balances in various liabilities account lying unclaimed over a period of time have been reviewed by the management and being satisfied about the remote possibility of their claims, have written back the same aggregating to Rs. 1,141,354 in the account.

4. Year end balance confirmation letters from some parties in respect of Sundry Debtors, Advances (both debit & credit), Sundry Creditors, Security Deposits etc. were obtained. Steps are being taken by the company for obtaining the same, from the rest of the parties.

5. None of the suppliers informed the company that they are small-scale industrial undertakings. Accordingly, particulars of indebtedness to such undertakings as on September 30, 2014, in terms of Part I of Schedule VI to the Companies Act, 1956 are not furnished.

7. The provisions of Employees State Insurance Act, 1948 are applicable to the Company.

8. The company is in the process of creating of Gratuity Fund as required under A.S.15 of I.C.A.I. Pending funding, adequate provision towards gratuity liabilities has been made in the accounts on the basis of Actuarial Valuation.

9. The company acquired a piece of land under lease agreement for 99 years in the year 1992-1993 from M/s. The East India Hotels Ltd., Kolkata, at a cost ofRs. 23,785,726/-.

In compliance with the Accounting Standard issued by the ICAI, the company has taken a policy during the current period to amortize the cost of the lease over the lease period. i.e., 99 years in equal annual installments.

Hence an amount of Rs. 240,260/- p.a. has been charged to the Profit & Loss Account under Depreciation & Amortization. An aggregate ofRs. 5,045,457/- has also been charged in the Profit & Loss Account under Exceptional Items and this has been considered while calculating the amount of Provision for Income Tax and Deferred Tax.

10. During the period ending September 30, 2014, the Company has entered into an agreement with M/s. Martin Burn Estates Pvt. Ltd. (related party) of 1, R. N. Mukherjee Road, Kolkata - 700 001, to look after the total maintenance work, repairing work, electrical line maintenance work and safety measures of the tenants of the owned buildings of the company, according to the prevalent laws of Government of West Bengal due to the inadequate infrastructure facility available at the company to attend/ control approx. 300 tenants and occupants of the buildings. Martin Burn Estates Pvt. Ltd. has been authorized to raise the bill(s) of maintenance, electricity and others to meet the running expenditure required and to create fund from the surplus to meet the Working Capital requirement and also repay the initial Working Capital (Free of Interest) provided by Martin Burn Limited, the owner of the buildings. Consequently, based on the Accounts for the 15 months period ended on 30.06.2013, expenditure ofRs. 49.5 Lac approximately without considering the share of planning & supervision charges which is not quantifiable, has reduced during the current period vis - a - vis a reduction of Rs. 59.5 Lac in Income.

11. The balance of Unsecured Loan given to a Party stood at Rs. 132,351,159/- inclusive of accrued Interest of Rs. 8,756,159/- as on 31.03.2006. Accrued Interest for the year 2006-2007 amounted to Rs. 9,634,055/- and total dues to the Company was Rs. 141,985,214/- at the end of the year.

Loanee, expired in the year 2005-2006. However, the wife of deceased Loanee took over the deceased husband''s liability. The new Loanee repaid Rs. 30,832,691/- during the period 2006-2007 to 2009-2010.

The balance of the Loanee''s account as per Company''s books stood atRs. 127,553,068/- as on 31.03.2011. Subsequently interest has not been accounted for in the books in terms of the AS9 and the revised policy of the company to account for interest in default on receipt basis. However, Loanee has confirmed a balance ofRs. 111,152,523/- as on 31.03.2014 as their dues to the company. The difference ofRs. 16,400,545/- being the interest accounted for by the company but not confirmed or paid by the Loanee, has been provided for in the account as a matter of abundant precaution although the company has been negotiating with the Loanee for realization of entire dues.

13. Income and direct expenses in relation to segments is categorised based on items that are individually identifiable to that segment. Certain expenses such as staff related expenses, travelling, telephones etc., which form a significant component of total expenses, are not specifically allocable to particular segments as the underlying services are used interchangeably. The Company believes that it is not practicable to provide segment disclosures relating to these costs and expenses, and accordingly these expenses are separately disclosed as "unallocated" and directly charged against total income. Similarly depreciation is not specifically allocable to particular segments.

15. Liabilities in respect of (a) Sales Tax Demand amounting to Rs. 5,664,240/- has been disputed and pending before the Appellant Authority and hence have not been provided for as the same are contingent in nature.

16. Total amount of Bank Guarantee obtained from The Federal Bank Ltd. towards Security Deposit for CESC Ltd., stood at Rs. 4,207,126/- as on 30.09.2014.

17. Previous year''s figures have been regrouped, recast and rearranged wherever necessary.


Jun 30, 2013

1. (a) The amount of rent payable by the company to Kolkata Port Trust in respect of Kidderpore Stock Yard is under dispute and the matter is sub-judice with the Hon''ble District Judge, Alipore Judges Court, Kolkata. The Company had been paying rent to Kolkata Port Trust at the demanded rate without prejudice since February, 2007 by cheque, which had since been accepted by Kolkata Port Trust and duly encased till July, 2011, when the outstanding came down toRs. 60,271,802.80.

In the month of August, 2011 Port Trust has revised their demand for Rent upwardly to Rs. 765,315.00 per month as against their earlier demand of Rs. 419,640.00 per month. The Company, thereafter, stopped paying the rent and submitted before the Hon''ble Court for inclusion of this matter in the original petition. Hence, no further provision for rent from August, 2011 amounting to Rs. 96,51,720/- has been made in the accounts.

(b) The company hiked the rent and service charges on the tenants at the above premises w.e.f. August, 2011, which was disputed by the tenants. No rent / service charges from August, 2011 has been received from the tenants and hence, has not been accounted for, which aggregate to Rs. 43,95,208 towards rent and Rs. 1,61,26,565 towards service charges.

2. Certain credit balances in various liabilities account lying unclaimed over a period of time have been reviewed by the management and being satisfied about the remote possibility of their claims, have written back the same aggregating toRs. 1,848,499 in the account.

3. Year end balance confirmation letters from some parties in respect of Sundry Debtors, Advances (both debit & credit), Sundry Creditors, Security Deposits etc. were obtained. Steps are being taken by the company for obtaining the same, from the rest of the parties.

4. None of the suppliers informed the company that they are small-scale industrial undertakings. Accordingly, particulars of indebtedness to such undertakings as on June 30, 2013, in terms of Part I of Schedule VI to the Companies Act, 1956 are not furnished.

5. The provisions of Employees State Insurance Act, 1948 are applicable to the Company.

6. The company is in the process of creating of Gratuity Fund as required under A.S.15 of I.C.A.I. Pending funding, adequate provision towards gratuity liabilities has been made in the accounts on the basis of Actuarial Valuation.

7. Income and direct expenses in relation to segments is categorised based on items that are individually identifiable to that segment. Certain expenses such as staff related expenses, travelling, telephones etc., which form a significant component of total expenses, are not specifically allocable to particular segments as the underlying services are used interchangeably. The Company believes that it is not practicable to provide segment disclosures relating to these costs and expenses, and accordingly these expenses are separately disclosed as "unallocated" and directly charged against total income. Similarly depreciation is not specifically allocable to particular segments.

8. Liabilities in respect of (a) Sales Tax Demand amounting to Rs. 5,664,240 and (b) Income Tax Demand amounting to Rs. 17,292,993 are under appeal and hence have not been provided for as the same are contingent in nature.

9. Previous year''s figures have been regrouped, recast and rearranged wherever necessary.


Mar 31, 2012

1. The amount of rent payable by the company to Kolkata Port Trust in respect of Kidderpore Stock Yard is under dispute and the matter is sub-judice with the Hon'ble District Judge, Alipore Judges Court, Kolkata. The Company had been paying rent to Kolkata Port Trust at the demanded rate without prejudice since February, 2007 by cheque, which had since been accepted by Kolkata Port Trust and duly encashed till July, 2011, when the outstanding came down to Rs. 60,271,802.80.

In the month of August, 2011 Port Trust has revised their demand for Rent upwardly to Rs. 765,315.00 per month as against their earlier demand of Rs. 419,640.00 per month. The Company, thereafter, stopped paying the rent and submitted before the Hon'ble Court for inclusion of this matter in the original petition. Hence, no provision for rent has been made in the accounts.

2. Certain credit balances in various liabilities account lying unclaimed over a period of time have been reviewed by the management and being satisfied about the remote possibility of their claims, have written back the same aggregating to Rs. 1,714,514 in the current year's account.

3. Year end balance confirmation letters from some parties in respect of Sundry Debtors, Advances (both debit & credit), Sundry Creditors, Security Deposits etc. were obtained. Steps are being taken by the company for obtaining the same, from the rest of the parties.

4. None of the suppliers informed the company that they are small-scale industrial undertakings. Accordingly, particulars of indebtedness to such undertakings as on March 31, 2012, in terms of Part I of Schedule VI to the Companies Act, 1956 are not furnished.

5. The provisions of Employees State Insurance Act, 1948 are applicable to the Company.

6. The company is in the process of creating of Gratuity Fund as required under A.S.15 of I.C.A.I. Pending funding, adequate provision towards gratuity liabilities has been made in the accounts on the basis of Actuarial Valuation.

7. The company has raised fund of Rs. 1.75 Crore during the year by way of Application Money on 10 Lac Equity Share Warrants of Rs. 10 each and a premium of Rs. 30 each as per Special Resolution, dated 23.05.2011.

8. Income and direct expenses in relation to segments is categorised based on items that are individually identifiable to that segment. Certain expenses such as staff related expenses, travelling, telephones etc., which form a significant component of total expenses, are not specifically allocable to particular segments as the underlying services are used interchangeably. The Company believes that it is not practicable to provide segment disclosures relating to these costs and expenses, and accordingly these expenses are separately disclosed as "unallocated" and directly charged against total income. Similarly depreciation is not specifically allocable to particular segments.

9. RELATED PARTY DISCLOSURES

1. OTHER RELATED PARTIES WITH WHOM THE COMPANY HAD TRANSACTIONS ETC. Key Management Personnel

Kedar Nath Fatehpuria - Chairman & Managing Director

Vijay Kumar Fatehpuria - Director

Relatives:

Sunil Fatehpuria -Son of Kedar Nath Fatehpuria

Manish Fatehpuria -Son of Kedar Nath Fatehpuria

10. Liabilities in respect of (a) Sales Tax Demand amounting to Rs. 5,664,240 and (b) Income Tax Demand amounting to Rs. 46,981,720 are under appeal and hence have not been provided for as the same are contingent in nature.

11. Previous year's figures have been regrouped, recast and rearranged wherever necessary to make them comparable with those of current year.


Mar 31, 2010

1. In respect of Shreeram Arcade property, re-assessment of corporation tax by Kolkata Municipal Corporation for the area under companys occupation, as directed by the Honble High Court of Kolkata in its order dated 29th September, 2004, is not complete. As such the ultimate liability towards corporation tax for the said property is not ascertainable at this stage and has not been provided in the accounts. Suspense (Credit) in the accounts amounting to Rs. 5,457,240/- represents the amount collected by the Company from the Sub-Lessees of Shreeram Arcade, on account of Building Tax.

2. The amount of rent payable by the company to Kolkata Port Trust in respect of Kidderpore Stock Yard is under dispute and the matter is sub-judice. The Company has been paying rent to Kolkata Port Trust at the demanded rate without prejudice, since February, 2007 by cheque, which have since been accepted by Kolkata Port Trust and duly encashed. As per Books of A/cs. For 2008-2009 the liability to Kolkata Port Trust, A/c. Kidderpore Stock Yard was Rs. 66,624,959.80. Out of the said liability the Company has paid an amount of Rs. 3,440,693 to Kolkata Port Trust during the financial year 2009-2010 and the said payment has been accepted by the Kolkata Port Trust. With this payment the outstanding liability to Kolkata Port Trust as on 31.03.2010 comes to Rs. 63,184,266.80.

3. Certain Credit balances in various liabilities account lying unclaimed over a period of time have been reviewed by the management and being satisfied about the remote possibility of their claims, have written back the same aggregating to Rs. 197,009 in the current years account.

4. Year end balance confirmation letters from some parties could not be provided before the Auditors in respect of Sundry Debtors, Advances (both Debit & Credit), Sundry Creditors, Security Deposits etc. Steps are being taken by the Company for obtaining the same.

5. None of the suppliers informed the Company that they are small-scale industrial undertakings. Accordingly, particulars of indebtedness to such undertakings as on March 31, 2010, in terms of Part I of Schedule VI to the Companies Act, 1956, are

6. The provisions of Employees State Insurance Act, 1948, are not applicable to the Company.

7. Income and direct expenses in relation to segments is categorised based on items that are individually identifiable to that segment. Certain expenses such as staff related expenses, travelling, telephones etc., which form a significant component of total expenses, are not specifically allocable to particular segments as the underlying services are used interchangeably. The Company believes that it is not practicable to provide segment disclosures relating to these costs and expenses, and accordingly these expenses are separately disclosed as "unallocated" and directly charged against total income. Similarly, depreciation is not specifically allocable to particular segments.

8. Related Party Disclosures

(1) ENTERPRISES WHERE CONTROL EXISTS

a) Martin Burn Edutech Private Limited b) Martin Bum Energy Private Limited c) Pushpanjali Estates Private Limited d) Martin Burn Constructions Limited

(2) OTHER RELATED PARTIES WITH WHOM THE COMPANY HAD TRANSACTIONS ETC Key Management Personnel

Kedar Nath Fatehpuria - Chairman & Managing Director

Om Prakash Fatehpuria - Joint Managing Director

Kailash Nath Fatehpuria - Deputy Managing Director

Vijay Kumar Fatehpuria - Deputy Managing Director

Relatives :

Sushila Fatehpuria - Wife of Kedar Nath Fatehpuria

Bhagwati Fatehpuria - Wife of Om Prakash Fatehpuria

Laxmi Fatehpuria - Wife of Kailash Nath Fatehpuria

Manju Fatehpuria - Wife of Vijay Kumar Fatehpuria

Sunil Fatehpuria - Son of Kedar Nath Fatehpuria

Anil Fatehpuria - Son of Om Prakash Fatehpuria

Anup Fatehpuria - Son of Om Prakash Fatehpuria

Manish Fatehpuria - Son of Kedar Nath Fatehpuria

Aditya Fatehpuria - Son of Kailash Nath Fatehpuria

Vishal Fatehpuria - Son of Vijay Kumar Fatehpuria

9. Contingent Liability not provided for in respect of Sales Tax Demand amounting to Rs. 703,233.

10. Previous years figures have been re-grouped, re-cast and re-arranged wherever necessary to make them comparable with those of current year.

11. a) During the year 2009-2010 the entire investment of Rs. 43,200/- Equity Shares of Rs. 10/- each in M/s. Pushpanjali Estates Private Limited have been sold @ Rs. 100 per share, value of which has been collected during the year.

 
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