Home  »  Company  »  Oberoi Realty  »  Quotes  »  Notes to Account
Enter the first few characters of Company and click 'Go'

Notes to Accounts of Oberoi Realty Ltd.

Mar 31, 2015

NATURE OF OPERATIONS

Oberoi Realty Limited (the ''Company'' or ''ORL''), a public limited company, is engaged primarily in the business of real estate development and hospitality.

NOTE 1 : RELATED PARTY DISCLOSURES

A. Name of related parties and related party relationship i) Related parties where control exists

Subsidiaries

Oberoi Constructions Limited

Oberoi Mall Limited

Kingston Property Services Limited

Kingston Hospitality and Developers Private Limited

Sight Realty Private Limited

Buoyant Realty Private Limited (up to March 3, 2015)

Perspective Realty Private Limited

Expressions Realty Private Limited

Incline Realty Private Limited

Integrus Realty Private Limited

ii) Related parties with whom transactions have taken place during the year

Jointly controlled entities

Sangam City Township Private Limited Astir Realty LLP I-Ven Realty Limited

Buoyant Realty LLP (from March 4, 2015)

Joint venture of subsidiaries Oasis Realty

Key management personnel and their relatives

Vikas Oberoi Ranvir Oberoi Santosh Oberoi Bindu Oberoi Gayatri Oberoi

Entities where key management personnel have significant influence

R S Estate Developers Private Limited Oberoi Foundation R. S. V. Associates Neo Realty Private Limited



NOTE 2 : CONTINGENT LIABILITIES AND CAPITAL COMMITMENTS

2015 2014

A. Summary details of contingent liabilities

1. Letters of credit net of margin - -

(gross Rs.36.00 Lakh, previous year Rs.93.39 Lakh)

2. Bank guarantees net of margin - -

(gross Rs.1,175.21 Lakh, previous year Rs.1,651.79 Lakh)

3. Indemnity bonds given in favour of the government under Export 863.77 1,365.76

Promotion Capital Goods Scheme (net of bank guarantees)

4. Litigations

a) Legal cases against the Company not acknowledged as 1,933.60 5.47 debt (excluding certain matters where amounts are not ascertainable)

b) MVAT matters in dispute 320.55 495.60

c) Income-tax matters in dispute 881.88 1,722.27

d) Service tax matters in dispute 203.83 218.09

e) Property tax matters in dispute 395.15 -

5. Claims against the Company not acknowledged as debt - 3,845.06

6. Certain other additional matters which are under dispute but Amount not Amount not which are not acknowledged as debt by the Company ascertainable ascertainable

7. Corporate guarantees given (excluding corporate guarantee given 61,966.44 35,000.00 for raising debentures in a subsidiary, refer note C below)

B. Capital commitments

Capital contracts (net of advances) 1,218.55 20,007.29

C. The Company has mortgaged certain immovable properties and granted hypothecation and escrow of the receivables thereof as a security in respect of the debentures outstanding as on March 31, 2015 aggregating to H65,100.00 Lakh issued by a wholly owned subsidiary. The Company has also issued an irrevocable and unconditional corporate guarantee in respect of the same.

D. The sales tax department of the Government of Maharashtra has completed the VAT assessments in connection with the returns filed by the Company on the sale of flats to the customers during the period beginning from June 2006 till March 2012 and determined the interest liability at H197.54 Lakh on the assessed amounts. However, vide an order of the Hon''ble Supreme Court of India, the recovery of interest amounts in such cases has been stayed. Part of the amount has been collected by the Company from the flat purchasers on account of such liability. Pending the final decision in the matter, no effect is given in the profit and loss account for the same.

NOTE 3 : OTHER NOTES

A. In our opinion, all current assets appearing in the Balance Sheet as at March 31,2015 have a value on realisation in the ordinary course of the Company''s business at least equal to the amount at which they are stated in the Balance Sheet.

B. Balance of trade receivables, trade payables and loans and advances are subject to confirmation from respective parties and reconciliation, if any.

C. The Company is primarily engaged in real estate development. The Company has acquired various lands / development rights and certain projects are at initial stage of implementation. The projects may be developed with various end uses, such as hotel, retail outlets, plots, residential, commercial and IT specific use. Such projects will be classified under fixed assets or inventories, as the case may be, based on ultimate end use as per final development of the property. Pending such reclassification on final development of such properties, such plots and the cost incurred on development of projects is included under the head ''Work in progress'' or ''Plots of land'' as part of ''Current assets''.

D. The Company''s normal operating cycle in respect of operations relating to the construction of real estate projects may vary from project to project depending upon the size of the project, type of development, project complexities and related approvals. Operating cycle for all completed projects and hospitality business is based on 12 months period. Assets and liabilities have been classified into current and non-current based on the operating cycle.

E. As per section 135 of the Companies Act, 2013 read with relevant rules thereon, the Company was required to spend H696.00 Lakh on Corporate social responsibility (CSR) activities during FY2014-15, against which the Company has spent H15.94 Lakh during the year under review majorly towards maintaining green initiatives and beautification of public spaces.

F. The share of profit / loss in the LLP is accounted in the books of the Company as and when the same is credited / debited to the Partners'' Capital Account.

G. Previous year figures have been regrouped, re-arranged and re-classified wherever necessary to conform to current year''s classification.

H. Figures have been rounded off to the nearest thousand.


Mar 31, 2014

NATURE OF OPERATIONS

Oberoi Realty Limited (the ''Company'' or ''ORL''), a public limited company, is engaged primarily in the business of real estate developments and hospitality.

(Rs.in Lakh)

NOTE 1 :

CONTINGENT LIABILITIES, CAPITAL COMMITMENTS 2014 2013 AND OTHER COMMITMENTS

A. Summary details of contingent liabilities Letters of credit net of margin (gross H Nil previous year H 36.00 Lakh) - -

Bank guarantees net of margin - - (gross H 1,651.79 Lakh previous year H 2,412.12 Lakh)

Indemnity bonds given in the favour of the government under Export 1,365.76 3,446.85 Promotion Capital Goods Scheme (net of bank guarantees)

Legal cases against the Company not acknowledged as debts 0.50 -

Claims against the Company not acknowledged as debts 3,850.03 2,786.15

Certain other additional matters which are under dispute (including Amount not Amounts not some matters which are pending in court) but which are not ascertainable ascertainable acknowledged as debts by the Company

Custom duty matters in dispute - 44.00

Service tax matters in dispute 218.09 189.53

Income-tax matters in dispute 1,722.27 1,670.55

MVAT matters in dispute 495.60 -

Corporate guarantee given 35,000.00 5,000.00

B. Capital Commitments

Capital contracts (net of advances) 20,007.29 21,270.66

C. Other commitments

Other commitments 1,06,388.50 -

D. In respect of the leasehold property at Worli, which was assigned to I-Ven Realty Limited (the Company''s JV) in 2005, the Municipal Commissioner (MC) of the Municipal Corporation of Greater Mumbai (MCGM) has, pursuant to an order of the Bombay High Court, passed an order dated April 25, 2014 holding, inter alia, that the transfer of lease is valid, and that the approvals obtained by the Company''s JV were also valid.

E. The Hon''ble Supreme Court in its order dated September 26, 2013, upheld that the levy of VAT w.e.f. June 20, 2006 under MVAT Act, 2002 on property under construction, is constitutionally valid. Though the Government of Maharashtra has made consequential amendments to the MVAT Act, 2002, the same have been challenged by Builders Association of India (BAI) by way of writ petition before Bombay High Court and is pending for hearing.

In view of the above, the Company has determined the VAT liability in accordance with the amendments and has under protest, discharged the principal VAT liability excluding the interest thereon. No effect has been given in respect of this matter in the statement of Profit & Loss Account and the net balance has been carried to Balance Sheet. The net amount of H 267.54 Lakh, being the excess of liability over collection has been included as a contingent liability.

NOTE 2 : OTHER NOTES

A. In our opinion, all current assets appearing in the Balance Sheet as at March 31, 2014 have a value on realisation in the ordinary course of the Company''s business at least equal to the amount at which they are stated in the balance sheet

B. Balance of trade receivable, trade payables and loans and advances are subject to confirmation from respective parties and reconciliation, if any.

C. The Company is primarily engaged in real estate development. The Company has acquired various lands / development rights and certain projects are at initial stage of implementation. The projects may be developed with various end uses, such as hotel, retail outlets, plots, residential, commercial and IT specific use. Such projects will be classified under fixed assets or inventories, as the case may be, based on ultimate end use as per final development of the property. Pending such reclassification on final development of such properties, such plots and the cost incurred on development of projects is included under the head ''Works in progress'' or ''Plots of land'' as part of ''Current assets''.

D. The Company''s normal operating cycle in respect of operations relating to the construction of real estate projects may vary from project to project depending upon the size of the project, type of development, project complexities and related approvals. Operating cycle for all completed projects and hospitality business is based on 12 months period. Assets and liabilities have been classified into current and non-current based on the operating cycle.

E. The share of profit / loss in the LLP is accounted in the books of the Company as and when the same is credited / debited to the Partners'' Capital Account.

F. Previous year figures have been regrouped, re-arranged and re-classified wherever necessary to conform to current year''s classification.

G. Figures have been rounded off to the nearest thousand.


Mar 31, 2013

NATURE OF OPERATIONS

Oberoi Realty Limited (the ''Company'' or ''ORL''), a public limited company, is engaged primarily in the business of real estate development and hospitality.

A. Name of related parties and related party relationship

i) Related parties where control exists

Subsidiaries Buoyant Realty Private Limited

Expressions Realty Private Limited

Kingston Hospitality and Developers Private Limited

Kingston Property Services Limited

Oberoi Constructions Limited

Oberoi Mall Limited

Perspective Realty Private Limited

Sight Realty Private Limited

Triumph Realty Private Limited (till May 23, 2011)

ii) Related parties with whom transactions have taken place during the year

Jointly controlled entities Astir Realty LLP

I-Ven Realty Limited (from September 29, 2011) Sangam City Township Private Limited

Joint venture of subsidiaries Oasis Realty (AOP)

Key management personnel and their relatives Bindu Oberoi

Gayatri Oberoi Ranvir Oberoi Santosh Oberoi Vikas Oberoi

Entities where key management personnel Oberoi Foundation have significant influence R. S. Estate Developers Private Limited

NOTE 1 : OTHER NOTES

A. The Institute of Chartered Accountants of India has issued Guidance Note on Accounting for Real Estate Transactions (Revised 2012) in connection with the revenue recognition for a real estate project which commences on or after April 1, 2012 and also to real estate projects which have already commenced but where revenue is being recognised for the first time on or after April 1, 2012.

During the year under consideration, there is no real estate project for which revenue has been recognised under the said Guidance Note, hence there is no impact of the same in the statement of profit and loss for the year ended March 31, 2013.

B. In our opinion, all current assets appearing in the Balance Sheet as at March 31, 2013 have a value on realisation in the ordinary course of the Company''s business at least equal to the amount at which they are stated in the balance sheet.

C. Balance of trade receivable, trade payables and loans and advances are subject to confirmation from respective parties and reconciliation, if any.

D. The Company is primarily engaged in real estate development. The Company has acquired various lands / development rights and certain projects are at initial stage of implementation. The projects may be developed with various end uses, such as hotel, retail outlets, plots, residential, commercial and IT specific use. Such projects will be classified under fixed assets or inventories, as the case may be, based on ultimate end use as per final development of the property. Pending such reclassification on final development of such properties, such plots and the cost incurred on development of projects is included under the head ''Work in progress'' or ''Plots of land'' as part of ''Current assets''.

E. The Company''s normal operating cycle in respect of operations relating to the construction of real estate projects may vary from project to project depending upon the size of the project, type of development, project complexities and related approvals. Operating cycle for all completed projects and hospitality business is based on 12 months period. Assets and liabilities have been classified into current and non-current based on the operating cycle.

F. The share of profit / loss in the LLP is accounted in the books of the Company as and when the same is credited / debited to the Partners'' Capital Account.

G. Previous year figures have been regrouped, re-arranged and re-classified wherever necessary to conform to current year''s classification.

H. Figures have been rounded off to the nearest thousand.


Mar 31, 2012

Nature of Operations

Oberoi Realty Limited (the 'Company' or ORL'), a public limited company, is engaged primarily in the business of real estate development and hospitality.

A. Terms / rights attached to equity shares

The Company has only one class of equity shares having par value of Rs 10 per share. Each equity share is entitled to one vote. The Company declares dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

During the year ended March 31, 2012, the amount of per share dividend recognised as proposed for distribution to equity share- holders was Rs 2 (Rs 1), which is subject to approval of shareholders in Annual General Meeting.

B. Redemption of redeemable non-convertible cumulative preference shares

During the year, the Company has redeemed all 359 redeemable non-convertible cumulative preference shares ofRs 10,00,000 each aggregating to Rs 35,90,00,000 for an amount of Rs 1 and balance Rs 35,89,99,999 has been transferred to capital reserve.

C. Shares reserved for issue under options

The Company instituted an Employees Stock Option Scheme ('ESOP 2009') pursuant to the Board and Shareholders' resolution dated December 04, 2009. As per ESOP 2009, the Company is authorised to grant 14,43,356 options comprising equal number of equity shares in one or more tranches to the eligible employees of the Company and its subsidiaries. The employee will have the option to exercise the right within three years from the date of vesting of options. Under ESOP 2009, 13,49,553 options have been granted.

The employee share based payments have been accounted using the intrinsic value method measured by a difference between the market price of the underlying equity shares as at the date of grant and the exercise price. Since the market price of the underlying equity shares on the grant date is same as exercise price of the option, the intrinsic value of option is determined as Nil. Hence no compensation expense has been recognised. Under the fair value method, the basic and diluted EPS would have been lower byRs 0.11.

D. General description of significant defined plans Gratuity plan

Gratuity is payable to all eligible employees of the Company on death or on resignation, or on retirement, after completion of five years of service.

Leave plan

Eligible employees can carry forward leave in month of April of every year during tenure of service or encash the same on death, permanent disablement or resignation.

2012 2011 NOTE 1 : CONTINGENENT LIABELITIES CAPITAL COMMITMENTS AND OTHER COMMITMENTS A. Summary details of contingent liabilities

Letters of credit 316.48 -

Bank guarantees(gross) 2,563.78 3,282.23

Indemnity bonds given in favour of the government under Export Promotion Capital 3,721.18 3,721.18 Goods Scheme (net of bank guarantees)

Legal cases against the Company not acknowledged as debts 200.15 1,540.00

Claims against the Company not Acknowledged as debts 80.00 698.11

Certain other additional matters which are under dispute (including some matters Amounts not Amounts not

which are pending in court) but which are not acknowledged as debts by the Company ascertainable ascertainable

Service tax matters in dispute 85.88 85.88

Corporate guarantees given 5,000.00 -

Custom duty matters in dispute 44.00 -

Income-tax matters in dispute 1,077.54 232.85

B. Capital commitments

Capital contracts(net of advances) 25,920.81 11,145.50

C. Other commitments

Other commitments 1,884.67 -

D. During the year, the Company has acquired 50% interest in l-Ven Realty Limited (JV) which holds a leasehold property at Worli, assigned to it in 2005. The Municipal Commissioner (MC) of the Municipal Corporation of Greater Mumbai (MCGM) has passed an order in 2009 revoking various permissions granted earlier by the MCGM and also invalidating the transfer of lease to the JV.

The assignor of the lease had filed a writ petition before the Bombay High Court against the MCGM and others (to which the JV has also been made a party) seeking among other things that the order passed in 2009 be set aside. Vide order dated 25th May, 2012, the Bombay High Court has quashed and set aside the order passed in 2009 by the MC.

The JV has also filed a writ before the Bombay High Court against the MCGM and others seeking among other things that the order passed in 2009 be quashed and set aside. The matter is pending.

It is not possible to ascertain the monetary liability on this account.

E. The Maharashtra Chamber of Housing Industry (MCHI) had filed a writ petition in Bombay High Court challenging the levy of VAT w.e.f. June 20, 2006 under MVAT Act, 2002 on property under construction which has been recently dismissed by the High Court. Under the premises ownership agreement / letter of allotment entered into by the Company, such liability ultimately needs to be borne by the purchaser of the premises, for which the purchasers have created lien on bank deposits or has given bank guarantees / registered undertakings and / or adequately indemnified the Company and hence no provision has been made in the books.

Shareholders in the Annual General Meeting held on June 30, 2011 have passed the special resolution to vary and / or revise the utilisation proceeds from the Initial Public Offering ('IPO') of Equity Shares to utilise the proceeds of IPO including change in allocation for construction of ongoing projects, towards acquisition of land or land development rights and /or general corporate purposes, change in amount or schedule of deployment for the projects identified in the Prospectus, as the case maybe.

A. In our opinion, all current assets appearing in the Balance Sheet as at March 31, 2012 have a value on realisation in the ordinary course of the Company's business at least equal to the amount at which they are stated in the balance sheet.

B. Balance of trade receivable, trade payables and loans and advances are subject to confirmation from respective parties and reconciliation, if any.

C. The Company is primarily engaged in real estate development. The Company has acquired various lands / development rights and certain projects are at initial stage of implementation. The projects may be developed with various end uses, such as hotel, retail outlets, plots, residential, commercial and IT specific use. Such projects will be classified under fixed assets or inventories, as the case may be, based on ultimate end use as per final development of the property. Pending such reclassification on final development of such properties, such plots and the cost incurred on development of projects are included under the head 'Work in progress' or 'Plots of land' as part of 'Current assets'.

D. The Company's normal operating cycle in respect of operations relating to under construction real estate projects may vary from project to project depending upon the size of the project, type of development, project complexities and related approvals. Operating cycle for all completed projects and hospitality business is based on 12 months period. Assets and liabilities have been classified into current and non-current based on the operating cycle of respective businesses.

E. The share of profit / loss in the LLP is accounted in the books of the Company as and when the same is credited / debited to the Partners' Capital Account.

F. Figures have been rounded off to the nearest thousand.

Till the year ended March 31, 2011, the Company was following pre-revised Schedule VI to the Companies Act 1956, for preparation and presentation of its financial statements. During the year March 31, 2012, the revised Schedule VI notified under the Companies Act, 1956 has become applicable to the Company. The Company has reclassified / re-grouped the previous year figures to conform to this year's classification. The adoption of revised Schedule VI does not impact recognition and measurement principles followed for preparation of financial statements. However, it significantly impacts presentation and disclosures made in financial statements, particularly presentation of balance sheet.


Mar 31, 2011

1. We have reviewed financial statements and the cash flow statement of Oberoi Realty Limited for the year ended March 31, 2011 and that to the best of our knowledge and belief :

i. these statements do not contain any materially untrue statement or omit any material fact or contain statements that might be misleading;

ii. these statements together present a true and fair view of the companys af airs and are in compliance with existing accounting standards, applicable laws and regulations.

2. There are, to the best of our knowledge and belief, no transactions entered into by the Company during the year which are fraudulent, illegal or violative of the companys code of conduct.

3. We accept responsibility for establishing and maintaining internal controls for financial reporting and that we have evaluated the ef ectiveness of internal control systems of the company pertaining to fi nancial reporting and we have disclosed to the auditors and the Audit Committee, defi ciencies in the design or operation of such internal controls, if any, of which we are aware and the steps we have taken or propose to take to rectify these defi ciencies. In our opinion there are adequate internal controls over financial reporting.

4. We have indicated to the auditors and the Audit committee

i. significant changes in internal control over financial reporting during the year;

ii. significant changes in accounting policies during the year, if any, have been disclosed in the notes to the financial statements; and

iii. that there are no instances of significant fraud of which we have become aware and the involvement therein, if any, of the management or an employee having a significant role in the companys internal control system over financial reporting.

1. Nature of operations:

Oberoi Realty Limited (the Company or ORL), a public limited company, together with its subsidiaries and joint ventures (collectively referred to as the Group) is engaged primarily in the business of Real Estate Development and Hospitality.



5. Contingent liabilities not provided for in respect of:

(Rs. in Lakh)

No. Particulars March 31, 2011 March 31, 2010

A. Letters of Credit (net of margin) - 18.04

B. Bank Guarantees (gross) 3,332.23 2,578.38

C. Capital Contracts (net of advances) 27,649.18 34,691.77

D. Groups share of commitment in Joint Venture 2,400.00 4,000.00

E. Indemnity Bonds given in favour of the Government under Export Promotion 3,721.18 3,627.73 Capital Goods Scheme (net of Bank Guarantees)

F. Legal cases against the Group not acknowledged as debts 1,560.00 5.00

G. Claims against the Group not acknowledged as debts 2,860.19 669.23

H. Certain other additional matters which are under dispute (including some Amounts not Amounts not matters which are pending in court) but which are not acknowledged as ascertainable ascertainable debts by the Group

I. Service tax matters in dispute 215.91 215.91

J. Customs duty matters in dispute 3.30 -

K. Income-tax matters in dispute 1,051.97 1,410.24

L. SRPL, a joint venture of a subsidiary, had entered into a Master Asset Purchase Agreement (Agreement) to purchase immovable and movable properties of hotel located at Juhu, Mumbai, for a consideration of Rs.34,906.00 Lakh with the Vendor Company. SRPL has paid an advance of Rs. 7,500.00 Lakh towards the same.

Due to various disputes with the vendors, the said transaction has not been completed. Consequent to Arbitration applications being fi led, the Honble Bombay High Court has passed an order directing the parties to maintain the status quo. In the arbitration proceedings, the vendors have lodged various claims against the SRPL. The maximum liability claimed under various alternatives is Rs. 23,200.00 Lakh and interest thereon. Matter being subjudice, in view of the terms and conditions of the Agreement and one of the relief claimed by the vendors to terminate the Agreement and refund the advance paid by the SRPL, the SRPL is confi dent that it will succeed in its case against the vendors and others and no amounts would be payable towards the claims fi led. Accordingly, no provision has been made in the books of accounts.

Two writ petitions have been fi led in the Honble Bombay High Court by Tulip Star Hotel and others against the orders dated September 21, 2005 and January 13, 2006 passed by the Industrial Court in a complaint fi led by the Union of Centaur-Tulip Employees. Both the writ petitions have by orders dated July 7, 2010 been disposed of by the Honble Bombay High Court. The orders of July 7, 2010 have been challenged by Tulip Star Hotel vide two appeals fi led in the Honble Bombay High Court and the same are currently pending.

6. The Government of Maharashtra had amended the provisions of Maharashtra Value Added Tax Act, 2002 (MVAT Act), and to provide that Value Added Tax (VAT) is leviable under the provisions of MVAT Act on sale of premises under construction by the enterprise engaged in the business of construction. Maharashtra Chambers of Housing Industry (MCHI) had fi led a writ petition challenging the constitutional validity of the amendment. By the Interim Order dated December 7, 2007, the Honble Bombay High Court, has directed the members of the MCHI not to register as Dealer under the provisions of MVAT Act and no order of assessment be passed, subject to compliance of certain formalities. This stay of the Honble Bombay High Court is still pending clearance.

Further, the Government of Maharashtra has introduced a scheme of composition for registered dealers under sub section (3A) of section 42 of the MVAT Act, vide Notifi cation No. VAT 1510 / CR-65 dated July 09, 2010. Under this scheme, a registered dealer who undertakes construction of fl ats or buildings and transfers them in pursuance of an agreement along with land, an amount of 1% of the aggregate amount specifi ed in the agreement or the stamp duty value, whichever is higher, shall be payable.

By virtue of the Premises Ownership Agreement / Letter of Allotment entered into by the Group with the purchasers of the premises, the purchaser is liable to pay, and Group is entitled to recover, any VAT that may be leviable on the said transaction and hence Group does not have any liability in connection with the same.

7. The Group has raised invoices on various tenants / licensees for rent / licence fee and service tax thereon, in accordance with the terms of the agreements with the tenants / licensees, which provide that the tenants / licensees are liable to pay the service tax on the rent / licence fees. The matter of levy of service tax on rent has been the subject matter of litigation in various courts and various courts have passed orders in connection with the same.

In cases where the Group has received the service tax amount on the rent / licence fees from the tenants / licensees, the same has been deposited with the Government Treasury, in accordance with the provisions of Finance Act, 1994. However, in the cases where the tenants / licensees have protested levy of service tax and contended that they are covered by the judgements of various courts, the Group has not received service tax on the rent / licence fee from the tenants / licensees and accordingly, same has not been deposited with Government Treasury.

As at March 31, 2011, the amount of such service tax (excluding interest and penalty) not received from the tenants is Rs. 677.84 Lakh (PY Rs. 448.25 Lakh). The amount of sundry debtors is net of the said service tax amount.

8. Work-in-progress as at March 31, 2011, includes an amount of Rs. 29,734.13 Lakh (PY Rs. 29,383.53 Lakh) in respect of the Companys property at Mulund, Mumbai (Mulund Property). The Government of Maharashtra had purportedly declared the Mulund Property to be covered by the provisions of the Maharashtra Private Forest (Acquisition) Act, 1975 along with various other properties in Mumbai. The Company had fi led a writ against the State of Maharashtra challenging the same in the Honble Bombay High Court and subsequent to the judgment of the Honble Bombay High Court, the Company had fi led Special Leave Petition (SLP) in the Honble Supreme Court.

By an order dated September 30, 2009, the Honble Supreme Court had held that the petitioners, who are prepared to pay the net present value, would be at liberty to pay the same to the Forest Department. Accordingly, the Company had paid an amount of Rs.1,091.00 Lakh, being the net present value payable, as determined by the Conservator of Forest.

By an order dated January 25, 2010, the Honble Supreme Court has vacated its stay and the Company is at liberty to make use of the land or to go on with the construction on the said land and create third party interest, subject to the decision of the MOEF. The matter is pending for fi nal disposal.

9. The Company and its subsidiaries recognise revenue on Percentage of Project Completion Method in respect of projects. One of the subsidiaries has claimed 100% deduction of Profit for computing the tax liability in respect of certain Residential Projects. Provision for Income-tax has been made, keeping in view, the following:

A. The Profits computed on Percentage of Project Completion Method are derived from construction and development project and are eligible for 100% deduction under section 80IB (10) of the Income-tax Act, 1961 subject to compliance of the conditions enumerated therein.

B. Clarification issued by Central Board of Direct Taxes that the deduction of Profits under section 80IB of the Income-tax Act, 1961, can be claimed on a year to year basis where Profits are shown on partial completion of the Project every year.

In the event, the subsidiary is unable to satisfy the conditions enumerated in section 80IB (10) of the Income-tax Act, 1961, more particularly of completing the Project within the specifi ed time period, the deduction shall stand withdrawn for the respective year(s), and the subsidiary would be called upon to pay Income-tax along with interest / penalty thereon.

8. 359 Preference shares of Rs. 10 Lakh each aggregating to Rs. 3,590 Lakh were due for redemption on January 1, 2011 either at par or for an aggregate amount of Re. 1, based on certain terms. Subsequently, in the Board meeting held on May 4, 2011, the Board has approved the redemption of the said Preference Shares for an aggregate amount of Re. 1. Also, the excess provision of dividend of Rs. 83.11 Lakh made during the year ended March 31, 2010 has also been reversed.

9. Employee Stock Option Scheme:

The Company instituted an Employees Stock Option Scheme 2009 (ESOP 2009) pursuant to the Board and Shareholders resolution both dated December 4, 2009. As per ESOP 2009, the Company is authorised to grant 1,443,356 options comprising equal number of equity shares in one or more tranches to the eligible employees of the Company and its subsidiaries. The employee will have the option to exercise the right within three years from the date of vesting of options.

10. Related Party Disclosure: A. Related Parties

i) Key Management Personnel and their Relatives:

(a) Vikas Oberoi

(b) Ranvir Oberoi

(c) Santosh Oberoi

(d) Bindu Oberoi

(e) Gayatri Oberoi

ii) Entities where Key Management Personnel have signifi cant infl uence:

(a) R. S. Estate Developers Private Limited

(b) Oberoi Foundation

(c) Splendor Developers Private Limited (from Oct. 1, 2009)

(d) Neelkamal Realtors & Builders Private Limited

(e) Sky Lark Buildcon Private Limited

(f) I - Ven Realty Limited

iii) Association of Persons

(a) Zaco Aviation

(b) Oasis Realty (Excess Share on Consolidation)

iv) Joint Ventures

(a) Siddhivinayak Realties Private Limited (Excess Share on Consolidation)

(b) Sangam City Township Private Limited (Excess Share on Consolidation)

11. Loans and advances includes sum of Rs. 16,302.16 Lakh towards MAT credit which is eligible for set of against future Income- tax liability of the Group and is available up to a specifi c period. In the event of inadequacy of future Profits, the same would be written of on expiry of specifi c period.

12. The Group is engaged in real estate development. The Group has acquired various lands / development rights and certain projects are at initial stage of implementation. The projects may be developed with various end uses, such as hotel, retail outlets, plots, residential, commercial and IT specifi c use. Such projects will be classifi ed under Fixed Assets or Inventories, as the case may be, based on ultimate end use as per fi nal development of the property. Pending such reclassifi cation on fi nal development of such properties, such plots and the cost incurred on development of projects is included under the head Work-in-progress or Plots of land as a part of Current Assets.

13. In our opinion, all Current Assets appearing in the Balance Sheet as at March 31, 2011 have a value on realisation in the ordinary course of the Groups business at least equal to the amount at which they are stated in the Balance Sheet.

14. Balance of Sundry Debtors, Sundry Creditors and Loans and Advances are subject to confi rmation from respective parties and reconciliation, if any.

15. Figures have been rounded of to the nearest Rupee and previous year fi gures have been regrouped, re-arranged and re-classifi ed wherever necessary to conform to current years classifi cation.



 
Subscribe now to get personal finance updates in your inbox!