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Notes to Accounts of Poddar Housing & Development Ltd.

Mar 31, 2014

Note 1 Contingent liabilities and Commitments (not provided for):

a) Claims against the Company not acknowledged as debt Rs.14.85 lacs. The matter was decided in favour of company. However, the bank has preferred an appeal against the order which is pending before the Debt Recovery Tribunal. The Company had deposited Rs.1.00 lacs as earnest money.

b) Guarantee given by a bank on behalf of the Company amounting to Rs.56.48 lacs against which 100 % fixed deposit margin given by the Company.

c) Guarantee given by the Company to a bank on behalf of one of the subsidiaries amounting to Rs.2200 lacs

a) In absence of adequate building-wise consumption records of materials, the aggregate consumption has been arrived at on the basis of closing stock of the materials as physically verifed by the management after deducting the same from the opening stock & total purchases made during the year and the same has been allocated to the respective buildings on the basis of consumption certifcate issued by the architect.

*Certain expenses have been apportioned to the respective project and debited to cost of construction in Note "A3" & "A4" **Post possession maintenance represents rectifcation of defects repair work carried out after the handing over possession of the fat to the customers.

* The estimate of future salary increases considered in actuarial valuation takes into account infation,seniority, promotion and relevent factors.

Note 2 The Company has not received any intimation from its suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006. Hence, disclosures, if any, relating to the amounts unpaid as at the year end together with interest paid/payable as required under the said Act have not been given.

Note 3 Related Party Disclosures

1 Related party disclosures, as required by AS-18, "Related Party Disclosures" are given below:

i List of Subsidiaries

Poddar Natural Resources & Ores Ltd Poddar Infrastructure Pvt. Ltd Poddar Habitat Pvt. Ltd Poddar Leisure Infrastructure Pvt. Ltd Wearology Ltd - FZC

ii List of Joint Venture

Viva Poddar Housing Pvt. Ltd

iii List of Partnership Firms (Associates): Organically Grown Group LLC Nav Nirman Agro Shiv Shakti Developers

iv Enterprises over which Key Management personnel/Relatives have significant infuence:

Poddar Bhumi Holdings Ltd (formerly known as Suvijay Exports Ltd) Brite Merchants Ltd

Poddar Heaven Homes Ltd (formerly known as Knitrite Apparelco Ltd) Poddar Amalgamated Holdings Pvt. Ltd Poddar Foundation

v Key Managerial Person:

Shri Dipak Kumar Poddar – Executive Chairman Shri Rohitashwa Poddar - Managing Director

Note 4 The Company has received demand notice of Rs.349.05 lacs towards royalty including penal charges from Land revenue authorities (Tahsildar) Government of Maharashtra for excavation of Land and Stone in respect of land at Badlapur. The Company had preferred an appeal before the higher authority which has confirmed the same with certain concession. The Company has fled a writ petition against the Order in the Bombay High Court, hearing of which is pending. Similar levy had been raised on other land owners and they have obtained the stay from the Bombay High Court. In view of the same, and as per expert opinion, the management is of the view that the above demand is not tenable.

In view of the above and opinion of the board, no provision is considered necessary till the matter is finally decided. Moreover, in exceptional circumstances, if the matter is not decided in favour of the Company, the same would be debited to the cost of project of other phases to be constructed on the same land. Note 37 The Company is dealing in only real estate segment. Hence, AS-17 on ''Segment Reporting'' is not applicable to the Company.

Note 5 The figure in the bracket represents the figures of the previous year.


Mar 31, 2012

1 Rs.2025000/-(Prev Yr Rs.1000000/-)paid during the year for SR A project at Kurla for which confirmation is awaited.

a) Loans and Advances to others include Rs.2785930/- (Prev. Yr. Nil) which is considered doubtful of recovery for which no provision has been made in the accounts as the management is hopeful to recover the same in due course of time.

b) Loans and Advances to Related parties include Rs.44750000/- (Prev. Yr. Nil) given to Ami Varsha Land Developers P.Ltd towards Joint development agreement at Borivali which is now being cancelled and advances alongwith compensation would be recovered in due course of the time.

Note 1 - Contingent liabilities and Commitments (not provided fort:

a) Claims against the Company not acknowledged as debt Rs. 14.85 lacs .The matter was decided in favour of company. However, the bank has preferred an appeal against the order which is pending before the Debt Recovery Tribunal. The Company had deposited Rs.1.00 lac as earnest money.

a) In absence of adequate building-wise consumption records of materials, the aggregate consumption has been arrived at on the basis of closing stock of the materials as physically verified by the management after deducting the same from the opening stock & total purchases made during the year and the same has been allocated to the respective buildings on the basis of consumption certificate issued by the architect.

Note 2

Income Tax

a) In respect of A.Y. 1993-94, the CIT (Appeals) had decided the matter in favour of the Company and directed Income Tax Officer to give necessary effects of the said order which would result in significant reduction in the demand. However, the Company had made a provision of Rs,4 lacs against which Rs.3 lacs has already been paid. The balance payment if any will be made as and when final demand is received from the Department.

b) Income tax order for the A.Y. 1995-96 were set aside by the appellant tribunal and fresh orders were passed raising aggregating demand of Rs.455770/-, net of refund, has been provided in accounts.

c) In respect of A.Y.2001-02 Income tax authorities have raised the demand forRs. 155424/- against which company has requested to the income tax authorities to appropriate the refund ofRs. 138350/- in respect of TDS relating to A.Y.2004-05 and balance amount will be paid after necessary adjustment. However, the necessary provision has been made in the accounts.

Note 3

The Company has not received any intimation from its suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006. Hence, disclosures, if any, relating to the amounts unpaid as at the year end together with interest paid/payable as required under the said Act have not been given.

Note 4 Related Party Disclosures

1 Related party disclosures, as required by AS-18, "Related Party Disclosures" are given below:

i List of Subsidiaries

Poddar Natural Resources & Ores Ltd

Poddar Infrastructure Pvt. Ltd

Poddar Habitat Pvt. Ltd

Poddar Leisure Infrastructure Pvt. Ltd

Wearology Ltd - FZC

Ami Varsha Land Developers P.Ltd

ii List of Partnership Firms (Associates)

Organically Grown Group LLC

Nav Nirman Agro

iii Enterprises over which Key Management Personnel/Relatives have significant influence Suvijay Exports Ltd

Brite Merchants Ltd Knitrite Apparelco Ltd Poddar Amalgamated Holdings Pvt. Ltd Wearology Ltd - LLC

iv Key Managerial Person:

Shri Dipak Kumar Poddar - Executive Chairman Shri Rohitashwa Poddar - Managing Director

Note 5

The Company is dealing in only real estate segment. Hence, AS-17 on 'Segment Reporting' is not applicable to the Company. Note 38

The figure in the bracket represents the figures of the previous year.

Note 6

Previous year figures are regrouped/re-arranged wherever necessary.


Mar 31, 2010

1. Contingent liabilities not provided for:

a) Claims against the Company not acknowledged as debt Rs. 14.85 lacs .The matter was decided in favour of company. However, the bank has preferred an appeal against the order which is pending before the Debt Recovery Tribunal. The Company had deposited Rs. 1.00 lac as earnest money.

b) Capital contract remaining to be executed not provided for net of advance of Rs. 27.50 lacs.

2. Sundry Debtors, Creditors and Loans & Advances are subject to confirmation and reconciliation.

3. Income Tax

a) in respect of A.Y. 1993-94, the CIT (Appeals) had decided the matter in favour of the Company and directed income Tax Officer to give necessary effects of the said order which would result in significant reduction in the demand. However, the Company had made a provision of Rs. 4 lacs against which Rs. 3 lacs has already been paid. The balance payment if any will be made as and when final demand is received from the Department.

b) Income tax order for the A.Y. 1995-96 were set aside by the appellant tribunal and fresh orders were passed raising aggregating demand of Rs. 455770/- net of refund, has been provided in accounts.

c) In respect of A.Y. 2001-02 Income tax authorities have raised the demand for Rs. 155424/- against which company has requested to the income tax authorities to appropriate the refund of Rs. 138350/- in respect of TDS relating to A.Y. 2004-05 and balance amount will be paid after necessary adjustment. However, the necessary provision has been made in the accounts.

4. The Company has not considered the effect of impairment loss on the fixed assets as required under AS - 28 on Impairment of assets issued by the Institute of Chartered Accountants of India. However, in the opinion of the management, there would not be significant effect of the impairment as the major assets of the Company comprises of Building in addition to vehicles which have been procured in last two to three years.

5. Loans and Advances include Rs. 25 lacs (Prev. Yr. 25 lacs) which is considered doubtful of recovery for which no provision has been made in the accounts.

6. The Company has not provided for employee benefit such as Gratuity, Leave Encashment and other retirement benefits as per AS-15 on "Employee benefits" (revised 2005). However, the Company has taken group gratuity policy from the LIC of India and contributed full premium up to 31s1 March 2010. The net amount of contribution, after adjusting provision for gratuity upto previous year, of Rs. 2,64,984/-, exclusive of Rs. 58,690/- that has been debited to construction expenses as shown in Schedule K, has been charged to profit & loss account. Moreover, the Company has provided for accrued privileged leave on the basis as if all employees will retire at the end of the year. The overall liability in respect of employees retirement benefit has been fully provided for in the accounts.

a) Business Segment

For Management reporting purposes, the Company is organized into two operating divisions - Garments and Realties. The divisions are on the basis of which the Company reports its primary segment information. The above segments have bei;n identified taking into account the organization structure as well as the differing risk and returns of these segments.

i. Garments segment comprises of Export of the goods and trading in textiles and also providing services to its subsidiaries towards merchandising and documentations.

ii. Realty segment comprises of Land bank and Land development Rights and construction of Low-Cost housing project.

iii. Others segment mainly comprises of income from investments of surplus funds.

b) Geographical Segment

The Company caters to Indian as well as to export markets. The separate geographical segment information has already been given herein above.

7. Advances recoverable in cash/kind or for value to be received include advances aggregating to Rs. 26,87,759/- given in the earlier year for procurement of land at Tisgaon-Dombivali, Maharashtra. In addition to above the Company has also given further advance of Rs. 1,45,000/- during the year. There is no significant development on such procurements during the year. The recovery thereof would depend upon further development of the project and market conditions.

8. Bhivpuri Project -

a) The Company has acquired 8.83 acres of Land at Bhivpuri for construction of low-cost housing project in a phased manner. The necessary approvals for construction from various authorities have been obtained and the Company has commenced the construction of the first phase of 1193.55 Sq mtrs. All the expenses up to 31.03.2010 related thereto have been shown at cost under Work-in-Progress in Schedule F and K.

b) The Company has also commenced the booking of flat under Construction and received advance towards booking which have been shown as Advance against sale of flat under the head Current Liabilities in Schedule G.

c) The Company has also given advances/token of Rs. 20.61 lacs towards purchase of additional land, which is under process of registration in favour of the Company.

d) The Company has also given advances of Rs. 25.27 lacs towards purchase of Land, which is not prima facie suitable for the construction and necessary steps are being taken to recover/realize the same. The necessary effect, if any, on account of non/short realization will be given in the accounts as and when the matter is resolved.

9. Badlapur Project -

a) The Company has entered into agreements for purchase of Development rights on agricultural land at Badlapur site for aggregate consideration of Rs. 945.07 lacs which is subject to approvals/permission of various government authorities. The total amount including stamp duty and other expenses amounting to Rs. 1075.25 lacs has been shown as Land Development Rights under the head Inventories.

b) The above purchases have been made at prevailing market price as approved by the Board of Directors in the Board Meeting held on 28.10.2009. The Company has also obtained a valuation report from an independent valuer to verify the prices paid as it is significantly higher than valuation price as reckoned by stamp authorities.

c) The Company has also given advances/token of Rs. 24.55 lacs towards purchase of additional land, which is under process of registration in favour of the Company.

10. a) Total Outstanding Dues of Small Scale Industrial Undertaking Rs. 12,55,277/- (Pr. Yr. Rs. 1414/-). The name of the Small Scale Industrial Undertaking, to whom the Company owes a sum, outstanding for more than 30 days are Industrial Box Co. and Ridham Texport P. Ltd.. The information regarding the small scale industrial undertakings have been determined to the extent such parties have been identified on the basis of information available with the Company and the Auditors have relied tiiereon.

b) The Company has not received any intimation from its suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006. Hence, disclosures, if any, relating to the amounts unpaid as at the year end together with interest paid/payable as required under the said Act have not been given.

11. Related Party Disclosures

1. Related party disclosures, as required by AS-18, "Related Party Disclosures" are given below:

(i) List of Subsidiaries

Makara Real Estate Ltd.

Poddar Infrastructure Pvt. Ltd.

Poddar Habitat Pvt. Ltd.

Poddar Leisure Infrastructure Pvt. Ltd.

Wearology Ltd. - LLC

Wearology Ltd. - F2C

(ii) List of Partnership Firms (Associates) Organically Grown Group LLC Nav Nirman Agro

(iii) Enterprises over which Key Management personnel/Relatives have significant influence Suvijay Exports Ltd. Tiara Trading & Investment Pvt. Ltd. Gleam Trading & Investment Pvt. Ltd. Sapphire Advisors Pvt. Ltd. Brite Merchants Ltd. Citron Finlease Pvt. Ltd. Knitrite Apparelco Ltd. Santosh Trading & Investment Pvt. Ltd. Kamdhenu Technologies Pvt. Ltd.

(iv) Key Managerial Person:

Shri Dipak Kumar Poddar - Executive Chairman Shri Rohitashwa Poddar - Managing Director

12. Consumption of Raw materials has been arrived at after deducting the sales proceeds of stock of unusable Raw materials of Fents/Regs etc.

13. The Company has not received bank statement from certain banks (outside Maharashtra) where there are either no transactions or very few transactions. Such bank accounts are mainly open for getting the credit of duty drawback in the past. The Company has already forwarded the written request to send the bank statement as well as balance confirmation as on 31s March 2010. Necessary effect if any will be given in the accounts as and when the same are received. In the opinion of the management impact of such transactions would not be material.

14. Profit on sale of Raw material & Accessories remains adjusted in consumption.

15. The figure in the bracket represents thefigures of the previous year.

16. Previous year figures are regrouped/re-arranged wherever necessary.

17. Other provisions of the said Part II of the Schedule VI of the Companies Act, 1956 are Either NIL or NOT APPLICABLE.

 
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