Mar 31, 2016
NOTES TO THE FINANCIAL STATEMENTS AS AT 31ST MARCH, 2016
f) The Company has 98% share in Partnership Firm ''INDOGREEN INTERNATIONAL'' which is running a Hotel ''The Golden Palms Hotel & Spa''. The said hotel started its operations in June 2013 and was successfully running during the previous year. The Firm is a jointly controlled entity and prepares its own separate financial statements and will be assessed as Firm under the Income Tax Act.
1 On 18.03.2015, the Company formed a wholly owned, non-material, subsidiary company namely ''M/s Golden Palms Facility Management Pvt. Ltd.'' to provide the maintenance facility to the Group Housing Project developed by the Company individually and also those projects which are being developed in Joint Venture. As on 31.03.2015, Company''s Contractual Liability was to subscribe the 1,00,000 Fully paid up Equity Shares @ Rs. 10/- per share and the said shares were actually subscribed by the Company on 21.04.2015. Subsequently, the company has transferred its 50% shareholding, i.e., 50,000 Equity Shares to M/s IITL Projects Ltd. and consequently M/s Golden Palms Facility Management Pvt. Ltd. became an Associate company.
2. Operating Lease
The Company has given Various office premises on operating lease and during the previous year, The company has received rental income of Rs. 1,38,66,340/- (P.Y. 1,24,78,440/-) from said leased premises.
The future minimum Lease Rent Income under operating lease for each of the following periods are as under
Notes:
a) The Company''s share of assets, liabilities, income and expenditure has been included on the basis of audited financial information of its Jointly controlled Entities.
b) Previous year figures are in brackets.
3 In terms of the accounting policy for revenue recognition, estimates of project costs and revenues are reviewed periodically by the management and the impact of any changes in such estimates are recognized in the period in which such changes are determined.
4 In accordance with the provisions of Companies Act, 2013, the Company had revised the useful life of its fixed assets to comply with the life as mentioned under Schedule II of the Companies Act, 2013, during the year ended 31.03.2015 and as per the transition provisions, the Company had adjusted net credit of Rs.2,15,149/- with the opening balances of retained earnings, i.e., surplus in the Statement of Profit and Loss.
5 The company is mainly engaged in Real Estate and Infrastructure Development activities which constitute Single Primary Business Segment as defined under As-17.
6 In the absence of sufficient profits, no provisions have been made for (a) Dividend for the year ended 31.03.2016, on 8% Non-Cumulative, Non-Convertible, Non-Participating, Compulsory Redeemable Preference Shares; (b) Additional Premium @ Rs. 4/- per share, per year, payable on redemption of preference shares till these preference shares are redeemed.
7 Previous year figures have been regrouped, rearranged and/or reclassified wherever necessary to conform to current year''s classification.
Mar 31, 2014
1. The rights, preferences and restrictions attaching to each class of
shares including restrictions on the distribution of dividends and the
repayment of capital:
The Company has one class of equity shares having a par value of ''10
per share. Each shareholder is eligible for one vote per share held.
The Dividend proposed by the BOD is subject to the approval of
shareholders in the ensuing AGM. In the event of liquidation, the
equity shareholders are entiteled to receive the remaining assets of
the company after distribution of all preferential amount in the
proportion to their shareholding.
The Company has only one class of preference shares 8% Non -
Cumulative, Non - Convertible, Non - Participating,Compulsory
Redeemable Preference Shares of Rs. 10/- each at a premium of Rs. 40/-
on each Preference Share to be redeemed after 15 years at a premium of
Rs. 100/- on each Preference Share but which may be redeemed at the
option of the Company at any time after 2 years at a fixed premium of
Rs. 40/-on each Preference Share and an additional premium @ Rs. 4/-
per year till these Preference Shares are redeemed. These shares carry
no voting rights and the said shares are Non-convertible into equity
shares.
As per records of the Company, including its register of
shareholders/members and other declarations received from shareholders
regarding beneficial interest, the above shareholding represents both
legal and beneficial ownerships of shares.
2. (A) CORPORATE INFORMATION
Nimbus Projects Limited is engaged in Real Estate Development, Trading
of Properties & Real Estate Agent business etc. It is developing
Residential Projects in National Capital Region (NCR). It has acquired
plot of land, on long term lease basis under Builder Residential Scheme
of Greater Noida Industrial Development Authority (GNIDA), New Okhla
Industrial Development Authority (NOIDA) and Yamuna Expressway
Authority (YEA). Apart from developing its own Project, the company is
undertaking development through Special Purpose Vehicle (SPV). The
company is engaged in four SPV for development of Residential complex.
3. Presentation and disclosure of financial statements:
During the year ended 31 March 2014, the revised Schedule VI notified
under the Companies Act 1956, has become applicable to the companies,
for preparation and presentation of its financial statements. The
adoption of revised Schedule VI does not impact recognition and
measurement principles followed for preparation of financial
statements. However, it has significant impact on presentation and
disclosures made in the financial statements. The Company has also
reclassified the previous year figures in accordance with the
requirements applicable in the current year.
4. The company had entered into a collaboration agreement, under joint
control, to construct a commercial complex "Pearl Business Park" at
Pitampura, Delhi. On revision of the project it was found that the
project has been fully completed. The revenue from and interest in such
entity has been accounted for as an investment in terms of the
provisions of the AS-27.
5. The Company is developing a Group Housing Project "Express Park
View" at Greater Noida. The Apartments are being planned on a Land
admeasuring 9951.04 Sq. mtrs. Situated at Plot No GH-10B, Sector CHI-V,
Greater Noida, U.P., located in main Noida- Greater Noida Expressway.
The proposed Flatted Residential Development shall encompass all
important facilities and amenities such as well laid out roads and
paths, landscaped areas and beautiful parks, street lights and well
designed services to give world class comfort feeling to the residents.
Project consisting of 332 flats in totality, consisting of 2 Bed Rooms
and 3 Bed Rooms in sizes varying 831sq.ft. to 1458 sq.ft. On revision
of the project it was found that 95% of the Civil Construction Work &
Finishing work has been completed as on 31st March, 2014 and project
will be completed till September 2014.
The Company has booked total 275 Flats of varying sizes in the said
project and has collected the booking amount of Rs. 53.69 Crore for the
above said booking of flats till 31.03.2014.
6. The Company had entered into a Partnership "IITL-NIMBUS THE HYDE
PARK NOIDA" in April 2010 with M/s IITL Projects Ltd. & M/s Supertech
Ltd. to develop the Group Housing Project "The Hyde Park" at Plot No.
GH-03, Sector 78, Noida. The agreed Capital Ratio between the partners
is 45:45:10 and profit will be shared in the Weighted Average Capital
Ratio. The Hyde Park Project for Residential Development shall
encompass all important facilities and amenities such as well laid out
roads and paths, landscaped areas and beautiful parks, street lights
and well designed services to give world class comfort feeling to the
residents. Project consisting of 2044 flats in totality. Apartments
shall be of IBHK/ 2BHK/ 3BHK & 4BHK in sizes varying 525sq.ft. to 2428
sq.ft.
The Partnership Firm has booked total 1173 Flats of varying sizes in
the said project and has collected the booking amount of Rs. 344.10
Crore for the above said booking of flats till 31.03.2014.
7. The Company had entered into a Partnership IITL-NIMBUS THE EXPRESS
PARK VIEW - with M/s IITL Projects Ltd. & M/s Assotech Ltd. in April
2011, to develop the Group Housing Project "Express Park View - II" at
Plot No. GH-03, Sector CHI-V, Greater Noida. The agreed Capital Ratio
between the partners is 47.5:47.5:5 and profit will be shared in the
Weighted Average Capital Ratio. The Express Park View II, Project for
Residential Development shall encompass all important facilities and
amenities such as well laid out roads and paths, landscaped areas and
beautiful parks, street lights and well designed services to give world
class comfort feeling to the residents. Project consisting of 1668
flats in totality. Apartments shall be of 2BHK/ 3BHK & 4BHK in sizes
varying 984 sq.ft. to 2191 sq.ft.
The Partnership Firm has booked total 620 Flats of varying sizes in the
said project and has collected the booking amount of Rs. 107.80 Crore
for the above said booking of flats till 31.03.2014.
8. The Company had entered into a Partnership IITL-NIMBUS THE PALM
VILLAGE - with M/s IITL Projects Ltd. & M/s Assotech Ltd. in June 2011,
to develop the Group Housing Project "The Golden Palm Village" at Plot
No. GH-03, Sector 22A, Greater Noida of Yamuna Expressway Industrial
Development Authority. The agreed Capital Ratio between the partners is
47.5:47.5:5 and profit will be shared in the Weighted Average Capital
Ratio. The Golden Palm Village, Project for Residential Development
shall encompass all important facilities and amenities such as well
laid out roads and paths, landscaped areas and beautiful parks, street
lights and well designed services to give world class comfort feeling
to the residents. Project consisting of approx. 2036 flats in
totality. Apartments shall be of 2BHK & 3BHK in sizes varying 1021
sq.ft. to 1467 sq.ft.
The Partnership Firm has booked total 256 Flats of varying sizes in the
said project and has collected the booking amount of Rs. 18.53 Crore
for the above said booking of flats till 31.03.2014.
9. The company holds the 50% shareholding i.e. (500000 Equity Shares &
5000000 Preference Shares) of M/s "Capital Infraprojects Pvt. Ltd.".
The company M/s "Capital Infraprojects Pvt. Ltd." is developing a Group
Housing Project at Plot No. GH-01/E, Sector - 168, Noida. The Project
"The Golden Palms" shall encompass all important facilities and
amenities such as well laid out roads and paths, landscaped areas and
beautiful parks, street lights and well designed services to give world
class comfort feeling to the residents. Project consisting of 1408
flats & 49 Commercial Units in totality. Apartments shall be of Studio
Appt. / 2BHK/ 3BHK & 4BHK in sizes varying 506sq.ft. to 2629 sq.ft.
The Company M/s "Capital Infraprojects Pvt. Ltd." has booked total 783
Flats of varying sizes & 20 Commercial Units in the said project and
has collected the booking amount of Rs. 220.87 Crore for the above said
bookings till 31.03.2014.
10. The Company holds 90% share in Partnership Firm "INDOGREEN
INTERNATIONAL" who is running a Hotel "The Golden Palms Hotel & Spa".
The said hotel starts in June 2013 & successfully running during the
previous year.
The Firm is a jointly controlled entity and prepares its own separate
financial statements and will be assessed as Firm under the Income Tax
Act.
11. The Company, during the Financial Year 2012-13, has issued
20000000, 8% Non-Cumulative, Non-Convertible, Non- Participating,
Compulsary Redeemable Preference Shares of Rs. 10/- each at a Premium
of Rs. 40/- on each Preference Shares to be redeemed after 15 years at
a Premium of Rs. 100/- on each Preference Shares but which may be
redeemed at the option of the Company at any time after 2 years at a
fixed premium of Rs. 40 on each Preference Shares and an additional
premium @ Rs. 4/- per year till these Preference Shares are redeemed
out of which the company has received an application for 15800000
shares upto 31.03.2013 and the company has allotted the same till
31.03.2013. During the April 2013 the company has received the
application for balance 4200000 shares and the same was allotted during
April 2013.
12. The Company during the previous year has acquired 97.58% shares of
M/s Hepta Developers Pvt. Ltd., which is also a Real Estate Development
company and doing construction business currently at Ludhiana &
Pinjore. Now M/s Hepta Developers Pvt. Ltd. Has become subsidiary of
our company.
13. The company is mainly engaged in Real Estate and Infrastructure
Development activities which constitute Single Primary Business Segment
as defined under As-17.
i) The Company has given four office premises on operating lease for a
period of thirty three (33) month from the date of execution of Leave
and License Agreement. The company has received rental income of Rs.
23.01 Lacs from said three premises during the year.
The Company has also given three premises on rent for a period of
eleven (11) month from the date of execution of Rent Agreement. The
company has received rental income of Rs. 10.96 Lacs from the said
premises during the year.
The Company during the previous year has given one office premises on
operating lease for a period of 9 years from the date of execution of
Lease Agreement. The company has received rental income of Rs. 43.33
Lacs from said three premises during the year.
14. There are no amounts due to the suppliers covered under the Micro,
Small and Medium Enterprises Development Act, 2006; this information
takes into account only those suppliers who have responded to the
enquiries made by the Company for this purpose. This has been relied
upon by the auditors.
15. Note:
1. The Company''s share of assets, liabilities, income and expenditure
has been included on the basis of audited financial information of its
joint ventures.
2. Previous year figures are in brackets.
24) Figure of the previous year has been regrouped / rearranged /
recasted wherever necessary to confirm the figures of the current year.
Mar 31, 2013
1.) Presentation and disclosure of financial statements:
During the year ended 31 March 2013, the revised Schedule VI notified
under the Companies Act 1956, has become applicable to the companies,
for preparation and presentation of its financial statements. The
adoption of revised Schedule VI does not impact recognition and
measurement principles followed for preparation of financial
statements. However, it has significant impact on presentation and
disclosures made in the financial statements. The Company has also
reclassified the previous year figures in accordance with the
requirements applicable in the current year.
2.) Basic and diluted earnings per share is computed by dividing profit
after tax attributable to equity shareholders for the year by the
weighted average number of equity shares outstanding during the year.
The Company has not issued any potential equity shares and accordingly,
the basic earnings per share and diluted earnings per share are the
same. Values used in calculating earnings per share are as under:
3.) Related Party Disclosure
Related parties and transactions with them as specified in the
Accounting Standard 18 on "Related Parties Disclosures" issued by ICA1
has been identified and given below on the basis of information
available with the Firm and the same has been relied upon by the
auditors.
A) Names of related parties and nature of related party relationship
where control exists are as under:
Group Company: Nimbus India Limited
Nimbus Propmart Limited
Nimbus Multicommodity Brokers Limited
B) Names of other related parties and nature of relationship where
entity has significant influence overparties:
Companies/Firms in which Directors: -IIT lnvestrust Ltd.
have significant influence -11T Insurance Broking and Risk Management
Pvt. Ltd.
-IIT Media and Entertainment Pvt. Ltd. -World Resorts Ltd. -MRG
Hotels Pvt. Ltd. -IITL Projects Ltd -Industrial Investment Trust Ltd
-Capital Infra Projects Pvt. Ltd -IITL-Nimbus The Hyde Park
-IITL-Nimbus, The Express Park View -IITL- Nimbus, The Palm Village
-Indogreen International
Key Management Personnel: Mr. Bipin Agarwal (Managing Director)
4.) Defined Benefit Plan
The employee''s gratuity fund scheme managed by L.I.C. of India under a
defined benefit plan. The present value of obligation is determined
based on the actuarial valuation using the Projected Unit Credit
Method, which recognizes each period of service as giving rise to
additional unit of employee benefit entitlement and measures each unit
separately to build up the final obligation
5.) The company had entered into a collaboration agreement, under
joint control, to construct a commercial complex "Pearl Business Park"
at Pitampura, Delhi. On revision of the project it was found that the
project has been fully completed. The revenue from and interest in such
entity has been accounted for as an investment in terms of the
provisions of the AS-27.
6.) The Company is developing a Group Housing Project "Express Park
View" at Greater Noida The Apartments are being planned on a Land
admeasuring 9951.04 Sq. mtrs. Situated at Plot No GH-10B Sector CHI-V,
Greater Noida, U.P, located in main Noida- Greater Noida Expressway The
proposed Flatted Residential Development shall encompass all important
facilities and amenities such as well laid out roads and paths,
landscaped areas and beautiful parks, street lights and well designed
services to give world class comfort feeling to the residents. Project
consisting of 332 flats in totality. Apartments shall be 2 Bed Rooms
and 3 Bed Rooms in sizes varying 83 1 sq.ft. to 1458 sq.ft. On revision
of the project it was found that 95% of the Civil Construction Workhas
been completed as on 31 st March, 2013.
The Company has booked total 252 Flats of varying sizes in the said
project and has collected the booking amount of Rs. 40.34 Crore for the
above saidbooking of flats till 31.03.2013.
7.) The Company had entered into a Partnership "HTL-NIMBUS THE HYDE
PARK NOIDA" in April 2010 with M/s IITL Projects Ltd. & M/s Supertech
Ltd. to develop the Group Housing Project "The Hyde Park" at Plot No.
GH-03, Sector 78, Noida. The agreed Capital Ratio between the partners
is 45:45:10 and profit will be shared in the Weighted Average Capital
Ratio. The Hyde Park Project for Residential Development shall
encompass all important facilities and amenities such as well laid out
roads and paths, landscaped areas and beautiful parks, street lights
and well designed services to give world class comfort feeling to the
residents. Project consisting of 2044 flats in totality. Apartments
shall be of IBHK/ 2BHK/ 3BHK & 4BHK in sizes varying 525sq.ft. to 2235
sq.ft.
The Partnership Firm has booked total 1081 Flats of varying sizes in
the said project and has collected the booking amount of Rs. 265.56
Crore for the above saidbooking of flats till 31.03.2012.
8.) The Company had entered into a Partnership IITL-NIMBUS THE EXPRESS
PARK VIEW - with M/s IITL Projects Ltd. & M/s Assotech Ltd. in April
2011, to develop the Group Housing Project "Express Park View - II" at
Plot No. GH-03, Sector CHI-V, Greater Noida. The agreed Capital Ratio
between the partners is 47.5:47.5:5 and profit will be shared in the
Weighted Average Capital Ratio. The Express Park View II, Project for
Residential Development shall encompass all important facilities and
amenities such as well laid out roads and paths, landscaped areas and
beautiful parks, street lights and well designed services to give world
class comfort feeling to the residents. Project consisting of 1668
flats in totality. Apartments shall be of 2BHK/3BHK & 4BHKin sizes
varying 984 sq.ft. to 2191 sq.ft.
The Partnership Firm has booked total 527 Flats of varying sizes in the
said project and has collected the booking amount of Rs. 44.98 Crore
for the above said booking of flats till 31.03.2013.
9.) The Company had entered into a Partnership IITL-NIMBUS THE PALM
VILLAGE - with M/s IITL Projects Ltd. & M/s Assotech Ltd. in June 2011,
to develop the Group Housing Project "The Golden Palm Village" at Plot
No. GH-03, Sector 22A, Greater Noida of Yamuna Expressway Industrial
Development Authority. The agreed Capital Ratio between the partners is
47.5:47.5:5 and profit will be shared in the Weighted Average Capital
Ratio. The Golden Palm Village, Project for Residential Development
shall encompass all important facilities and amenities such as well
laid out roads and paths, landscaped areas and beautiful parks, street
lights and well designed services to give world class comfort feeling
to the residents Project consisting of approx. 3840 flats in totality.
Apartments shall be of 2BHK & 3BHK in sizes varying 1021 sq.ft. to 1467
sq.ft. 3 B
10.) The company has purchased 50% shareholding (5000 Equity Shares) of
M/s "Capital Infra projects Pvt. Ltd." in March 2011 and during the
F.Y. 2011-12, the company has also purchased the 495000 Equity Shares.
The company M/s "Capital Infraprojects Pvt. Ltd." is developing a Group
Housing Project at Plot No. GH-01/E, Sector 168, Noida. The Project
"The Golden Palms" shall encompass all important facilities and
amenities such as well laid out roads and paths, landscaped areas and
beautiful parks, street lights and well designed services to give world
class comfort feeling to the residents. Project consisting of 1408
flats in totality. Apartments shall be of Studio Appt. / 2BHK/ 3BHK &
4BHK in sizes varying 506sq.ft. to 2473 sq.ft.
The Company M/s "Capital Infraprojects Pvt. Ltd." has booked total 749
Flats of varying sizes in the said project and has collected the
booking amount of Rs. 129.85 Crore for the above said booking of flats
till 31.03.2013.
During the Previous Year the Company M/s "Capital Infraprojects Pvt.
Ltd" has issued 10000000 Preference shares and out of which our Company
has purchased the 50% i.e. 5000000 Preference Shares.
11.) The Company had entered into a Partnership with M/s. Green Meadows
Private Limited under the name and style of "INDOGREEN INTERNATIONAL"
to develop a Hotel Project "FORTUNE INN" at Mandawali Delhi.
As per the reconstitution of the partnership, the share of the company
in the said partnership has been increased from 50% to 90% and M/s.
Green Meadows Private Limited has been retired from the partnership
firm w.e.f. 01/04/2011 and a new partner M/s RC J Investment Trust
Pvt. Ltd. entered into the Partnership we. f. 01/04/2011.
The Firm is a jointly controlled entity and prepares its own separate
financial statements and will be assessed as Firm under the Income Tax
Act. On revision of the project it was found that all construction and
finishing work is completed as on 31.03.2013. The Hotel is likely to
start from June 2013 onwards.
12.) The Company, during the previous year, has issued 20000000, 8%
Non-Cumulative, Non-Convertible, Non- Participating, Compulsary
Redeemable Preference Shares of Rs. 10/- each at a Premium of Rs. 40/-
on each Preference Shares to be redeemed after 15 years at a Premium of
Rs. 100/- on each Preference Shares but which may be redeemed at the
option of the Company at any time after 2 years at a fixed premium of
Rs. 40 on each Preference Shares and an additional premium @ Rs. 4/-
per year till these Preference Shares are redeemed. The company has
received an application for 15800000 shares upto 31.03.2013 and the
company has allotted the same till 31.03.2013. During the April 2013
the company has received the application for balance 4200000 shares and
the same was allotted during April 2013.
13.) The company is mainly engaged in Real Estate and Infrastructure
Development activities which constitute Single Primary Business Segment
as defined under As-17.
14.) Leases:
i) The Company has taken land on finance lease which have been shown as
inventory. The lease term is on the basis of the agreement entered into
with the lessor. The future minimum lease payment under non cancelable
finance lease for each of the following periods are as follows:
ii) The Company has given four office premises on operating lease for a
period of thirty three (33) month from the date of execut.on of Leave
and License Agreement. The company has received rental income of Rs
21,12,000/- from said three premises during the year.
The Company has also given one premises on rent for aperiod of eleven
(11) month from the date of execution of Rent Agreement. The company
has received rental income of Rs. 4,80,000/- from the said premises
during the year.
The future minimum Lease Rent Income under operating lease for each of
the following periods are as under:
15.) Figure of the previous year has been regrouped/rearranged /
recasted wherever necessary to confirm the figures of the current year.
Mar 31, 2010
1.) The company had entered into a collaboration agreement, under joint
control, to construct a commercial complex "Pearl Business Park" at
Pitampura, Delhi and the construction work has been going on. On
revision of the project it has been found that 85% of the project has
been completed as on the 31st March, 2010. The revenue from and
interest in such entity has been accounted for as an investment in
terms of the provisions of the AS-27.
2.) The Company has launched a New Group Housing Project namely
"Express Park View" at Greater Noida during Previous Year. The
Apartments are being planned on a Land admeasuring 9951.04 Sq. mtrs.,
situated at Plot No GH-1 OB, Sector CHI-V, Greater Noida, U.P.
strategically located in main Noida- Greater Noida Expressway. The
proposed Flatted Residential Development shall encompass all important
facilities and amenities such as well laid out roads and paths,
landscaped areas and beautiful parks, street lights and well designed
services to give world class comfort feeling to the residents. Project
consisting of 320 flats in totality. Apartments shall be 2 Bed Rooms
and 3 Bed Rooms in sizes varying 831 sq.ft. to 1458 sq.ft.
The Company has booked total 84 Flats of varying sizes in the said
project and has collected the booking amount of Rs. 94 Lacs for the
above said booking of flats till 31.03.2010.
3.) The Company has entered into a consortium Agreement with M/s Indo
Green Projects Ltd. & M/s Supertech Ltd. with the specific objective of
making a bid under the scheme for Allotment of Group Housing Plots for
plotted and Flatted Development Scheme Code: GH-2010 (I) FOR PLOT NO.
GH-003 AT SECTOR - 78, NOIDA, of New Okhla Industrial Development
Authority (NOIDA). The agreed Capital Ratio is 45:45:10 and profit will
be shared in the Weighted Average Capital Ratio. Abid application was
made by the Consortium for allotment of a plot of land under the said
Scheme of NOIDA, and the Consortium has been awarded the bid and has
been allotted a piece of land admeasuring 60,348.53 Sq. Mtrs situated
at GH-03, Sector 78, Noida for construction of Group Housing Projects
under the said Scheme on 16th March 2010.
4.) The company has mainly engaged in Real Estate and Infrastructure
Development activities which constitute Single Primary Business Segment
as defined under As-17.
5.) Details of Related Party Transaction
Key Managerial Personnel
Mr. Bipin Agarwal, Chairman cum Managing Director and Company
Secretary, he has been paid as managerial remuneration of Rs. 24,00,
000/-. During the period April 2009 to March 2010.
Relatives of Key Managerial Personnel
Mr. Praveen Tayal who is brother of Mr. Bipin Agarwal was director in
the company till 25/03/2010. The Company has paid during the period
April 2009 to March 2010 Rs. 13,35,605/- towards the construction work
to M/s "Paras Realtech Ltd." in which Mr. Praveen Tayal is a Director.
6.) The Company has purchased, in 2008, one property which was already
given, by the seller, on operating lease for a period of 36 months with
monthly lease rental of Rs. 12,00,000/-. Now, on becoming the owner of
the property, the company has been receiving lease rentals from the
lessee since November, 2008 and will receive till lease expires on May,
2011. The property has been purchased as inventory and is capable of
being sold in such condition. However, AS-13 requires to account for
the investment property as long term investment. But AS-19,
specifically requires to present the property given on operating lease
under the head Fixed Assets separately and to make provision the
depreciation. Though, the management of the companys view is that
since the company itself has not given the property on lease, it is not
an original lessor but being lessor in default and to comply with the
specific provision of AS-19, the property has been presented / treated
as Fixed Assets and accordingly depreciation of Rs. 37,17,585/- has
been booked till 31.03.2010. The company will receive Rs. 1,44,00,000/-
in next 12 months i.e. between April 2010 to March 2011 and Rs.
24,00,000/- in next 2 months i.e. balance lease term between April 2011
to May 2011.
The company has given another property on Operating Lease for a period
of 36 months on a monthly rentals of Rs. 7,81,380/- starting from
October, 2008. The property has been purchased as inventory and is
capable of being sold in such condition. However, AS-13 requires to
account for the investment property as long term investment. But AS-19,
specifically requires to present the property given on operating lease
under the head Fixed Assets separately and to make provision the
depreciation. Hence to comply with the specific provision of AS-19, the
property has been presented / treated as Fixed Assets and accordingly
depreciation of Rs. 19,65,570/- has been booked till 31.03.2010.
Operating Lease Term for the said Property was till September 2011, but
due to some reason, the said leased property was sold in March 2010 and
a book profit of Rs. 76,31,833/- was booked in the books of accounts of
the company.
7.) Basic and Diluted Earning Per Share is Rs.2.53 (Previous Year: Rs.
0.80)
8.) The Deferred Tax Income of Rs. 2,93,477/- for the current year has
been recognized in the Profit & Loss A/c and the Deferred Tax Liability
has been re-assessed as on the Balance Sheet date at Rs. 6,08,068/-
9.) The company had entered into a Partnership Firm, "IndoGreen
International" to develop a Hotel Project "The Fortune Hotel" at
Mandawali, Delhi. The agreed Capital Ratio is 50: 50 and profit will be
shared in the Weighted Average Capital Ratio. The Firm is a jointly
controlled entity and prepares its own separate financial statements
and will be assessed as Firm under the Income Tax Act. The construction
work has been going on and on revision of the project it was found that
70% of the project has been completed as on 31st March, 2010. The
revenue from and interest in such entity has been accounted for as an
investment in terms of the provisions of the AS-27.
10.) The company, with Hepta Developers Pvt. Ltd. has been carrying on
a business under a Partnership Firm namely M/s Venketashwara
Constructions. The Companys capital and Profit sharing ratio is 75%.
The Firm is a jointly controlled entity and prepares its separate
financial statements and is assessed as firm under the Income Tax Act
1961. The revenue from and interest in such entity has been accounted
for as an investment in terms of the provisions of the AS-27.
11.) A Contingent Liability of Rs. 22,44,904/- on account of Service
Tax payable on Renting of Immovable Property has not been accounted for
in the books of account of the Company.
12.) The company has a defined benefit employees scheme in the form of
Gratuity and for this purpose it has entered into a Group gratuity cum
Life Assurance Scheme to be approved under part C of the Fourth
Schedule of Income Tax Act, 1961, with the Life Insurance Corporation
of India to provide the Gratuity Benefits to the employees of the
company under an Irrevocable Trust. The Trustees of the Scheme have
entrusted the administration of related fund to L.I.C. The company
shall pay to the trustee such contribution as are required to secure
the benefits which will include the liberalized death cover to the
employees. Expenses for the year is determined on the basis of
actuarial valuation of the companys year-end obligation in this regard
and the value of year end assets of the scheme. Contribution is
deposited with L.I.C. based on intimation received by the Company.
13.) Figure of the previous year has been regrouped / rearranged /
recasted wherever necessary to confirm the figures of the current year.
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