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Notes to Accounts of MVL Ltd.

Mar 31, 2015

Not available


Mar 31, 2014

1. Retirement Benefits

a) Contributions payable by the Company to the concerned Government Authorities in respect of Provident Fund, Family Pension fund and Employee State Insurance are charged to the statement of profit and loss.

b) Provisions for gratuity and Leave Encashment are made on actuarial valuation, as per Accounting Standard (AS)-15.

Defined Benefit Plans

In respect of Gratuity and Leave encashment as carried out by an independent actuary as at 31st March 2014 are as under:-

2. Accounting Standards

The Company follows all applicable accounting standards as required under Section 211 (3) (C) of the Companies Act, 1956.

For the Year For the Period

NOTE PARTICULARS Ended 31.03.14 Ended 31.03.13 NO. (Rs. in Lacs) (Rs. in Lacs)

3. Contingent Liabilities

For Corporate Guarantees given 1500.00 2125.00

For Bank Guarantees availed 1020.46 1020.46

4. Previous year figures have been regrouped and rearranged, wherever necessary.

5. Determination of Revenues under ''Percentage of Completion Method'' necessarily involves making estimates by management for percentage of completion, projected cost to completion, revenues expected from projects, and foreseeable losses.

These estimates being of technical nature have been relied upon by the auditors as per management representations.

6. Some of the Debit and credit balances of Trade Receivables, Trade Payable, Loans, advances, bank account and deposits are subject to confirmation and consequent adjustment if any arising from reconciliation. The Management however is of the view that there will be no material adjustments in this regard.

7. In the opinion of Directors, the current assets, loans and advances including advances for purchase of land have value on realization in the ordinary course of business at least equal to the value at which they are stated in the forgoing Balance Sheet except as otherwise stated.

8. During the year, decline in the value of long term investment in the shares of an unlisted company, has been recognized as that of "other than temporary nature" and value of said investment has been reduced by Rs. 970.20 Lacs by debiting to Statement of Profit and Loss.

9. Interest on loan from banks has been provided as per the last sanction letter. In case of defaults liability for unascertained value of penal interest has not been provided on account of restructuring proposal pending as on the date of balance sheet.

10. Disclosure of Related Party Transactions in accordance with Accounting Standard (AS)- 18 "Related Party Disclosures".

a) Subsidiaries (Group – A) MVL Developers Ltd. Udyan Hoticultures Pvt. Ltd. Creative Pools Developers Pvt. Ltd. Parisar Property Developers Pvt. Ltd.

b) Associates (Group – B) Shri Balaji Tirupati Electronics Pvt. Ltd. Falcon Technosystems Ltd.

c) Key Managerial Personnel (Group – C) Mr. Prem Adip Rishi – Chairman Mr. Rakesh Gupta – Director

Mr. Sushil Aggarwal – Vice President (Company Affairs& Legal) Mr. Dhiraj Suri – Vice President Operations

d) Relatives of Key Managerial Personnel Relative (Group – D) Mr. Arjun Rishi Mr. Prem Adip Rishi (HUF) Mrs. Anuradha Rishi

e) Companies/Parties in which key management Person or his relatives have substantial interest/significant influence (Group – E)

Media Holding Pvt. Ltd.

Media Magnetic Cassettes Ltd.

Icon Satellite Ltd.

MVL Credits Holdings & Leasing Ltd.

Noesis Industries Ltd.

Risbro Technical Equipment Pvt. Ltd.

Cardinal Infratech Ltd.

Note : - List of related parties has been identified by the management and relied upon by the auditors

b) There are no loans & advances in the nature of loans to Associate and to firms and companies in which directors are interested, other than as disclosed above.

c) There is no investment by the loanee in the shares of parent company.

11. As per the best estimate of the Management, no provision is required to be made in terms of Accounting Standard (AS)-29, in respect of any present obligation as a result of past event that could lead to a probable outflow of resource which would be required to settle the obligation.


Mar 31, 2013

1. As per board resolution dated 10.12.2012 the accounting period was extended by three months in consequence of the said change in this period the statement of profit and loss figures are for fifteen months ending 31.03.2013, whereas the comparative figures for previous year are for twelve months ending 31.12.2011.

2. Mr. Prem Adip Rishi, Director and chairman of the company was appointed as Managing Director of the Company for a period of 5 years w.e.f 01.08.2012 by the board of director at their meeting held on 13.08.2012 subject to shareholders approval and remuneration was also fixed for him w.e.f 01.08.2012. As such, commission payable to Mr. Prem Adip Rishi as chairman of the company as earlier approved was discontinued w.e.f. 01.08.2012.

3. Retirement Benefits a) Contributions payable by the Company to the concerned Government Authorities in respect of Provident Fund, Family Pension fund and Employee State Insurance are charged to the statement of profit and loss. b) Provisions for gratuity and Leave Encashment are made on actuarial valuation, as per Accounting Standard (AS)-15. Defined Benefit Plans In respect of Gratuity and Leave encashment as carried out by an independent actuary as at 31 December 2012.

4. Previous year figures have been regrouped and rearranged, wherever necessary.

5. Some of the Debit and credit balances of Trade Receivables, Trade Payable, Loans, advance & deposits are subject to confirmation and consequent adjustment if any arising from reconciliation. The Management however is of the view that there will be no material adjustments in this regard.

6. Determination of Revenues under ''Percentage of Completion Method'' necessarily involves making estimates by management for percentage of completion, projected cost to completion, revenues expected from projects, and foreseeable losses. These estimates being of technical nature have been relied upon by the auditors as per management representations.

7. In the opinion of Directors, the current assets, loans and advances have value on realization in the ordinary course of business at least equal to the value at which they are stated in the forgoing Balance Sheet.

8. There are no micro and small enterprises, to whom the company owes sums, which are outstanding for more than 45 days as at 31st March 2013. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act. 2006 has been determined (to the extent such parties have been identified) on the basis of information available with the company, further no interest during the year has been paid or is payable under the terms of the Act.

9. Disclosure of Related Party Transactions in accordance with Accounting Standard (AS)- 18 "Related Party Disclosures". a) Subsidiaries (Group – A) MVL Developers Ltd. Udyan Hoticultures Pvt. Ltd. Creative Pools Developers Pvt. Ltd. Parisar Property Developers Pvt. Ltd. b) Associates (Group – B) Shri Balaji Tirupati Electronics Pvt. Ltd. MVL Telecom Ltd. c) Key Managerial Personnel (Group – C) Mr. Prem Adip Rishi – Managing Director Mr. Praveen Kumar – Whole Time Director Mr. Anukool Rishi – Director (upto 19.02.2012) Mr. Sushil Aggarwal – Vice President (Legal & Company Affairs) Mr. Dhiraj Suri – Vice President Operations d) Key Managerial Personnel Relative (Group – D) Mr. Arjun Rishi e) Companies/Parties in which key management Person or his relatives have substantial interest/significant influence (Group – E) Anukool Films Pvt. Ltd. Aster Auto Pvt. Ltd. Global Digital Technologies Ltd. Media Holding Pvt. Ltd. Media Infrastructure Ltd. Media Magnetic Cassettes Ltd. Media Satellite & Telecoms Ltd. MVL Credits Holdings & Leasing Ltd. MVL Industries Ltd. Risbro Technical Equipment Pvt. Ltd. MVL Constructions Ltd. Balaji Tirupati Buildwell Pvt. Ltd. Balaji Tirupati Property Developers Pvt. Ltd. Balaji Tirupati Infrastructure Pvt. Ltd. Creative Pools Estates Pvt. Ltd. Shiwalik Property Developers Pvt. Ltd. MVL Solar Power Ltd.

Note : - List of related parties has been identified by the management and relied upon by the auditors

10. In view of Board Resolution dated 26.03.2013, Hospitality Division of the company has been closed. Assets of the Hospitality Division including land have been transferred to real estate division and the company is planning to seek approval for the same land for housing project. As a result of this there is only one segment that is real estate to be reported.

11. As per the best estimate of the Management, no provision is required to be made in terms of Accounting Standard (AS)-29, in respect of any present obligation as a result of past event that could lead to a probable outflow of resource which would be required to settle the obligation.

12. Directorate of Town and country planning (DTCP), Haryana, Chandigarh vide its letter dated 21.07.2010 for grant of license for Yamuna Nagar project had claimed charges towards internal development work (IDW) and external development charges (EDC) in all amounting to Rs. 4882.59 lacs, DTCP had further advised the company to provided a Bank Guarantee for 25% of the said amount. During last year, under a wrong notion, liability for Rs. 4882.59 lacs was created as if, payable to DTCP, which has been reversed during the year as this amount is recoverable from the project buyers. In respect of Bank Guarantee, contingent liability, net of security deposit paid, is reflected under note no. 29 annexed with the financial statements.


Dec 31, 2011

1. Amalgamation

The scheme of amalgamation of Balaji Tirupati Buildcon Ltd. (Amalgamated Company) with MVL Ltd. was approved by the Hon'ble High Court of Delhi on 8th October 2010. However the effective date of the said scheme is 12th January 2011. Assets and Liabilities of the amalgamated company were line-wise merged during the year, as a result of which: -

a) Authorized capital of the company increased from 70,00,00,000 to 73,00,00,000 equity share of Rs. 1/- each.

b) Issued, subscribed and paid up capital increased from 53,42,43,200 to 60,12,43,200 equity shares of Rs. 1/- each - representing 6,70,00,000 equity shares of Rs. 1 each issued to the existing shareholders of the amalgamated company.

c) Net debit balance of Rs. 6,03,18,042/- on account of amalgamation adjustments in respect of reserves and surplus, debit balance of profit and loss account, goodwill and deferred tax assets taken over was adjusted out of reserves and surplus of the amalgamated company.

d) Other assets and liabilities of the amalgamated company were merged with the assets and liabilities of the amalgamating company.

2. Previous year figures have been regrouped and rearranged, wherever necessary.

3. Some of the Debit and credit balances of Sundry Debtors, Creditors, Loans, advances & deposits are subject to confirmation and consequent adjustment if any arising from reconciliation. The Management however is of the view that there will be no material adjustments in this regard.

4. Determination of Revenues under 'Percentage of Completion Method' necessarily involves making estimates by management for percentage of completion, cost to completion, revenues expected from projects, and foreseeable losses. These estimates being of technical nature have been relied upon by the auditors as per management representations.

5. In the opinion of Directors, the current assets, loans and advances have value on realization in the ordinary course of business at least equal to the value at which they are stated in the forgoing Balance Sheet.

6. There are no micro and small enterprises, to whom the company owes sums, which are outstanding for more than 45 days as at 31st December 2011. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act. 2006 has been determined (to the extent such parties have been identified) on the basis of information available with the company, further no interest during the year has been paid or is payable under the terms of the Act.

7. Segment Reporting

Segments are being indentified on the basis of dominant source and nature of risks and returns. Industry segments of the company w.e.f. July 2011, are primarily Real Estate & Hospitality Sector.

Operations of Hospitality Sector commenced from July 2011, there is no revenue for the year. Expenses directly related to the said sector during the year are capitalized as work in progress. All other income, direct expenses, fixed and other assets and liabilities in relation each segment are categorized based on items that are individually identifiable to that segment. Unallocated item, if any, is grouped as "Unallocated".

8. As per the best estimate of the Management, no provision is required to be made in terms of Accounting Standard (AS)- 29, in respect of any present obligation as a result of past event that could lead to a probable outflow of resource which would be required to settle the obligation.

9. Liability for labour cess payable for projects in the States of Rajasthan and Haryana could not be ascertained in the absence of clarification and legal opinion sought in respect of applicable date and applicability on completed projects. Meanwhile the company has paid Rs. 32,63,216/- towards labour cess during the year as per its own estimate of amount due.


Dec 31, 2009

For the Year For the Year Ended on Ended on 31.12.09 31.12.08 (Rs: in Lacs) (Rs. in Lacs)

1. Contingent Liabilities

a) For Corporate Guarantees 750.00 -

b) Claims not acknowledged as debt 58.52 - for commercial disputes

2. a) Authorized share capital

During the year authorized share capital of Rs. 55,51,46,490/- divided into 5,55,14,649/- equity shares of Rs. 10/- each was increased to Rs. 70,00,00,000/- divided into 7,00,00,000/- equity shares of Rs. 10/- each as per the special resolution by postal ballot of 23rd February 2009.

With the approval of members at the EGM dated 9,h September 2009, equity shares of the face value of Rs. 10/- each were sub divided into 5 (five) equity shares of Rs. 21- each w.e.f. 22nd September 2009.

b) Issued, Subscribed and Paid-up Capital

Following two preferential allotments were made during the year on conversion of debentures allotted on preferential basis to non promoters: -

5,65,739 equity shares of Rs. 10/- each allotted as fully paid-up on 30m June 2009 in lieu of 5,00,000 debentures of Rs. 100/- each allotted on 12lh March 2009

93,932 equity shares of Rs. 10/- each allotted as fully paid-up on 31sl July 2009 in lieu of 1,00,000 debentures of Rs. 100/- each allotted on 8,h June 2009

Equity shares of Rs. 10/- each were sub divided into 5 (five) equity shares of Rs. 21- each w.e.f. 22nd September 2009.

3. Share Premium Account

On preferential allotment of equity shares against conversation of unsecured fully convertible debentures, premium @ Rs. 78.38 per share was collected on allotment of 5,65,739 equity shares of Rs. 10/- each on 30th June 2009 and premium @ Rs. 96.46 per share was collected on allotment of 93,932 equity shares of Rs. 10/- each on 31st July 2009

4. Convertible Warrants

As approved by the members at the EGM of 11th May 2009, in conformity with SEBI Guidelines for Preferential Issues (DIP) guideline and other applicable laws and guidelines, 71,28,755 convertible warrants were allotted to a non promoter and share application money @ 25% of SEBI minimum price (guideline) was collected, for issue of shares within 18 months at a price as per the fixed formula.

5. Previous year figures have been regrouped and rearranged, wherever necessary.

6. Disclosure of Related Party Transactions in accordance with Accounting Standard (AS) -18 "Related Party Disclosures".

(1) Relationship

a) Wholly owned subsidiary MVL Developers Ltd.

b) Other related parties in which key managerial personnel or their relatives have significant influence;

- MVL Industries Ltd.

- Balaji Tirupati Property Developers Pvt. Ltd.

- Balaji Tirupati Infrastructure Pvt. Ltd.

- MVL Constructions Ltd.

- Media Infrastructure Ltd.

- MVL Credit Holding & Leasing Ltd.

- Media Holding Pvt. Ltd.

- Shri Balaji Tirupati Electronics Pvt. Ltd.

- Balaji Tirupati Buildcon Ltd.

- Anukool Films Pvt. Ltd.

- Media Magnetic Cassettes Pvt. Ltd.

- Rishbro Technical Equipments Pvt. Ltd.

- MVL Solar Power Ltd.

- Global Digital Technologies Ltd.

- Balaji Tirupati Buildwell Pvt. Ltd.

c) Key Managerial Personnel with whom transactions have taken place: Mr. Prem Adip Rishi

Mr. Praveen Kumar

d) Relatives of key managerial personnel wnere transactions have taken place.

Mr.Anukool Rishi

Mr.Arjun Rishi

 
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