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Notes to Accounts of Prime Property Development Corporation Ltd.

Mar 31, 2015

Note: 1

Other additional disclosures

i. Contingent Liabilities:

a) Corporate Guarantees given to the bankers by the Company is NIL. (P.Y. Rs. 44,480/-).

b) The total VAT liability determined on completion of VAT assessment after considering provision made by the Company is considered as contingent liability.

ii. VAT Rs. 6,18,78,303 includes provision made for earlier years of Rs. 5 Crores as per estimated liability for FY. 2006 to 2011, pending VAT assessment by the authorities.

iii. Capital Commitments:

The Company does not have any capital commitments as on 31.03.2015

iv. Remuneration to Employee:

The Company has no employee in receipt of remuneration exceeding the limits prescribed under the Companies Act 2013.

xii. Miscellaneous

a) The Company had a Debt of Rs.17,00,000/- arising from Sale of Property in the year 2007 - 2008. The same was considered as doubtful for recovery in the previous year, is now written off as irrecoverable.

b) The Company has reclassified & regrouped previous year's figures to conform to this year's classification Signatures to Schedules As Per our attached report of even date


Mar 31, 2014

I. Contingent Liabilities:

a) Corporate Guarantees given to the bankers by the Company on behalf of the Wholly Owned Subsidiary Company Sea-King Club Private Ltd in respect of Credit facilities availed aggregating to Rs. 50 crores (Balance as on 31.03.2014 is Rs. 44,480) (PY Rs. 6.59crores).

b) The Company has filed Writ Petition in Bombay High Court against State of Maharashtra Value Added Tax Act, 2002 for the financial year 2006- 2007 to 2009-2010 in the month of April 2014 challenging the method of Valuation required to calculate taxability under Maharashtra Value Added Tax. The liability of Maharashtra Value Added Tax is not assessed by the department and cannot be properly calculated by company, due to uncertainty. The tax liability thereon, if any, cannot be reliably estimated till the outcome of the petition and has not been provided for.

ii. Capital Commitments:

The Company does not have any capital commitments as on 31.03.2014

iii. Requirements of Section 217 (2A) of the Companies Act, 1956;

The Company has no employee in receipt of remuneration exceeding the limits prescribed under the companies act.

iv. Foreign Exchange Earnings & Outgo:

Additional Information pursuant to provisions of Para 3 and 4 of Schedule VI of the Companies Act, 1956.

v. Fixed Assets:

The Company had purchased property at Vile parle (west) in the financial year 2004-2005 at a cost of Rs. 92,556,871/- which was given on rent and same was treated as fixed asset. Subsequently, the building was demolished and reconstructed. Construction of the building was completed in the current financial year and part of it was sold in the normal course of business. The remaining part will be sold in the normal course of business. Hence, it cannot be treated as Fixed Asset as per the definition of Fixed Asset given in the Accounting Standard 10 issued by Institute of Chartered Ac countants of India. Accordingly, WDV of Fixed assets Rs 78,363,998/- and Cost of Construction Rs.151,636,002/- appearing under capital Working progress is transferred to Inventory.

During the year company has made provision for the gratuity by adopting actuarial valuation. Company has not made any contribution to any gratuity fund. The following table sets out the status of gratuity valuation for the period ended 31st March, 2014 as required under AS 15 (Revised)

vi. Segment Reporting:

The Company has mainly one reportable business and geographical segment and hence no further disclosure is required under Accounting Standard (AS) 17 on Segment Reporting issued by the Institute of Chartered Accountants of India (ICAI).


Mar 31, 2013

I. Contingent Liabilities :

Corporate Guarantees given to the bankers by the Company on behalf of the Wholly Owned Subsidiary Company Sea-King Club Private Ltd in respect of Credit facilities availed aggregating to Rs. 50 crores (Rs. 6.59 crores withdrawn till 31.03.2013 by Subsidiary Company) (P.Y. Rs. 6.59crores)

The Income Tax Department has appealed against the order of Commissioner of Income Tax (Appeals) for A.Y. 2007-08 to the Income Tax Appellate Tribunal (ITAT). The decision of ITAT is awaited. Therefore, the Liability of Tax and interest thereon if any, is unascertainable

ii. Capital Commitments:

The Company does not have any capital commitments as on 31.03.2013

iii. Requirements of Section 217 (2A) of the Companies Act,1956:

The Company has provided Rs. 105 lacs towards proposed commission to chairman for the year 2013.

iv. Segment Reporting:

The Company has mainly one reportable business and geographical segment and hence no further disclosure is required under Accounting Standard (AS) 17 on Segment Reporting issued by the Institute of Chartered Accountants of India (ICAI).

v) Miscellaneous

a) Company does not have agreement with employee for any retirement benefits. The gratuity liability till date has been estimated by the management as per the Payment of Gratuity Act. However, the Company is still in process of obtaining the actuarial valuation report and makes its investment.

b) The Company has reclassified & regrouped previous year''s figures to conform to this year''s classification.


Mar 31, 2012

A) Terms / Rights attached to the Equity Shares

The Company has only one class of Equity Shares having a par value of Rs. 5/- per share. Each Share Holder is eligible for one vote per share held. The Dividend proposed by the Board of Directors is subject to the approval of the Shareholders in the ensuing Annual General Meeting. In the unlikely event of liquidation of the Company, the holders of the Equity Shares will be entitled to receive any of the remaining assets of the Company after distribution of all prefrential amounts, in proportion to the number of equity shares held by the equity shareholders.

i) The Company has availed Cash Credit facility amounting to Rs. 35 crores from State Bank of India. The cash credit facility is secured by the equitable mortgage by deposit of title deeds in favor of the Company's bankers & Hypothecation of receivables and stock of work in progress of the Prime Business Park, Vile Parle (W) & Prime Mall, Pune property.

The cash credit facility is also secured by personal guarantees of Shri P. L. Soni, Shri Manish P. Soni and Shri Vishal P. Soni, Promoter Directors of the Company.

The Company has already repaid its cash credit facility amounting to Rs. 25 crores and released the title deeds of Prime Mall, Pune project.

ii) The Company has outstanding loan for its motor car of Rs. 24,50,375/- taken from Kotak Mahindra Prime Limited which is registered in the name of the Director of the Company. Vehicle loan is secured against Motor Car. Balance Repay able in 10 installment of Rs. 2,52,600/- each payable on 10th of every month, maturing in Jan-2013.

Vehicles loan of Rs 24.50 Lacs (Previous Year 27.66 lacs) falls due for repayment within one year.

i. Contingent Liabilities :

Corporate Guarantees given to the bankers by the Company on behalf of the Wholly Owned Subsidiary Company Sea-King Club Private Ltd in respect of Credit facilities availed aggregating to Rs. 50 crores (Rs. 6.59 crores withdrawn till 31.03.2012 by Subsidiary Company) (P.Y. Rs.6.62 crores).

Due to loss of writ against State of Maharashtra, by Maharashtra Chamber of Housing Industry (MCHI) on April 10, 2012 Company may be now liable to pay Maharashtra Value Added Tax (MVAT) from financial year 2006-07. Company may be liable to pay MVAT as soon as same are decided/worked out by the authorities. The tax demand shall be paid and claimed as expenses in the year of actual payment.

However, MCHI has filed a petition with Supreme Court and the judgment is still awaited. Liability for the same cannot be crystallized due to uncertainty of the amount.

ii. Segment Reporting:

The Company has mainly one reportable business and geographical segment and hence no further disclosure is required under Accounting Standard (AS) 17 on Segment Reporting issued by the Institute of Chartered Accountants of India (ICAI).

iii) Miscellaneous

a) Gratuity payment is accounted on actual payment basis as per company policy. However as per the payment of Gratuity Act 1972, the amount accured as on 31/03/2012 should not exceed Rs. 32 Lacs.

b) Foreign Exchange Earnings & Outgo: There is no expenditure / earnings in foreign exchange for the current year (Previous year Rs. NIL)

c) Requirements of Section 217 (2A) of the Companies Act, 1956: The Company has no employee in receipt of remuneration exceeding the limits prescribed u/s 217 (2A) of the Companies Act, 1956.

d) To Comply with Revised Schedule VI, Previous year's figures are regrouped / recast wherever necessary.


Mar 31, 2010

I. Secured Loans:

a) During the year Company has repaid its Outstanding Term Loan of Rs. 698.74 lacs taken from Syndicate Bank.

b) Vehicles loan of Rs 25.88 Lacs (Previous Year 12.45 lacs) falls due for repayment within one year.

ii. The Company has mainly one reportable business and geographical segment and hence no further disclosure is required under Accounting Standard (AS) 17 on Segment Reporting issued by the Institute of Chartered Accountants of India (ICAI).

iii. In the opinion of the Directors there were no contingent liabilities as at the Balance Sheet date.

iv. During the year, Company has acquired business and 100% Equity shares of a Private Limited Company namely, Sea-King Club Private Limited for amounting to Rs. 30.10 crores.

v. During the year Company has written off in the books Rs. 13,24,331/- as bad debts which are incidental to the business of the Company

vi. During the year Vile Parle (W) property under the fixed assests blocks was demolished and additional expenditure of Rs. 1,52,75,867/- incurred for reconstruction of the said fixed assets. No depreciation is charged on the property being Capital work in progress. Estimated contract remaining to be executed on capital Expenditure amounting to Rs.1,300 lakhs for fixed assests are not provided as being work in progress of project.

vii. Other Income includes Rs. 500,000/- realization of amount written back of earlier year.

viii. During the year no expenses incurred & charged against the income received from Dividend on shares.

ix. Gratuity payment is accounted on cash basis as per policy; hence no provision is made for the same.

x. Additional Information Pursuant to Section 217(1) to the Companies Act, 1956:

The Licensed capacity, installed capacity and actual production, opening and closing stock of finished goods, Sale of finished goods and Raw and Packing Material consumed in quantity and value, Classification of Raw and Packing Materials consumed, are not relevant to the Company since it is engaged in civil construction and real estate development business.

xi. Micro, Small and Medium Enterprise:

The creditors of micro, small and medium enterprise are timely paid as per terms of contract and there are no over dues to any enterprise, hence, no provision of any interest is made.

xii. Related Parties Disclosures Under Accounting Standard 18 Of ICAI:

(A) Particulars of Party where control exists / Relative of parties where control exists:

Name of the Related Party Nature of Relationship

(i) M/s. Prime Property Developers Proprietor Firm in which control exists

(ii) M/s Sea-King Club Private Limited Wholly-owned Subsidiary Company

(B) Key Management Personnel:

Nature of Relationship

(i) Mr. Padamshi L. Soni Chairman

(ii) Mr. Manish P. Soni Whole Time Director

(iii) Mr. Vishal P. Soni Whole Time Director

(iv) Mr. Alok A. Chowdhury Whole Time Director & CEO

xiii. Previous years figures are regrouped / recast wherever necessary.

 
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