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Notes to Accounts of Prime Urban Development India Ltd.

Mar 31, 2015

Note 1

Additional information to the financial statements

01. Contingent liabilities and commitments As at 31st As at 31 st March, 2015 March. 2014

a. Contingent liabilities (to the extent not provided for) Disputed Tax Demands (Including Interest up to the date of demand)

(a)SalesTax : 11.58 11.58

The Sales tax liabilities of Rs.4.87 lacs is related to issue of 'C' form during 1997-98. Sales Tax Appellate Tribunal issued order in favour of Company and asked Department to verify the material facts of the case. Case not yet taken up by the department

B)Income Tax 743.09 743.09 (Tax deposits Rs.207.48 lacs pr.yr.207.48 lacs) The Income Tax liability for AY 2009-10 for Rs.551.09 lacs is under appeal before the Hon'ble Madras High Court and the High Court has given stay against the order of Income Tax Appellate Tribunal and collection of demand.

b. Commitments Other money for which the company is contingently liable; Export Documen- 1,056.91 1,079.15 tatry bills discounted with Bank (Since Realized- Rs.243.75 lacs Previous year Rs.410.80 lacs)

02. a. In the opinion of the management, assets other than fixed assets and non-current investments have a value on realization in the ordinary course of business at least equal to the amount at which they are stated. -

b. The accounts of certain Trade Receivables, Trade Payables, Loans & Advances and Banks are however, subject to formal confirmations/reconciliations and consequent adjustments, if any. The management does not expect any material difference affecting the current period's financial statements on such reconciliation/adjustments. /

3. Segment Information:

List of Related Parties and nature of relationships:

Wholly owned subsidiaries :

ATL Textile Processors Limited

Manoj Yarn Processors Limited

Pee Dee Yarn Processors Limited

Patodia Developers Pvt Ltd

With whom transactions have been entered in to :

(i) Associates

Prime Developers

Prime New line AOP

Prime Mall Developers

Prime Hitech Admin Services LLP

Aadarsh Jann Aawaash Limited

(ii) Key Managerial Personnel

Mr. Purusottam Das Patodia Chairman and Managing Director

Mr. Manoj Kumar Patodia Vice Chairman and Managing Director

Mr. Anuj Patodia Managing Director

(iii) Enterprises having Common Key Management Personnel

Pat Credit Limited

Anjana Syntex Co. Limited

(iv) Relatives of Key Managerial Personnel

Mrs.lndiradevi Patodia Wife of Mr. Purusottam Das Patodia

Mrs.Nandita Patodia Wife of Mr. Manoj Kumar Patodia

Mrs.Meenal Patodia Wife of Mr.Anui Patodia

Notes:

1. The related parties have been identified by the Management and relied upon by the auditors.

2. No amount has been provided for/written off/written back, pertaining to related parties.

4. Consolidated Financial Statements:

As per Accounting Standard 21 on "Consolidated Financial Statements" and Accounting Standard 23 on " Accounting for Investments in Associates in Consolidated Financial Statements" notified under the "The Companies Accounting Standards Rules, 2006" the company has presented Consolidated Financial Statements separately, in this annual report.

5. Figures in bracket represent previous year's figures.


Mar 31, 2014

Note 1(a) Equity Shares of more than 5% of Equity Shares are held by :

1(b)- There was no issue of shares alloted as fully paid up pursuant to Contarct(s) without payment being received in cash or buyback or bonus shares in the preceeding five years. -

1 (c) - The Company has only one class of equity shares having par value of Rs.2 per share. Each holder of equity shares is entitled to one vote per share.

1(d)- There is no change in the number of shares outstanding at the beginning and at the end of the year.

1(e) During the year, Company made preferential allotment of Share Warrants of 39,00,000 at Rs.5 per warrant with the option of converting each warrant into a Equity Share of Rs.2 each and the balance as Share Premium. The Promoters had subscribed 25% amounting to Rs.48.75 lacs of total subscription of Rs. 195.00 lacs and the balance amount to be contributed within 18 months i.e., before 28.04.2015

2. Employee Benefit Plans:

Defined contribution plans:

The company contributed to Superannuation and Provident Fund to defined contribution plans for qualifying employees. Under the Scheme, the Company is required to contribute a specified percentage of the payroll cost to fund benefits.

3. Disclosure in respect of related parties pursuant to Accounting Standard -18 (AS 18):- List of Related Parties and nature of relationships:

Wholly owned subsidiaries:

ATL Textile Processors Limited Manoj Yarn Processors Limited Pee Dee Yarn Processors Limited

With whom transactions have been entered in to:

(i) Associates

Aadarsh Jam Aawaash Limited Prime Developers

Prime Mall Developers

Prime New line AOP

Prime Hitech Admin Services LLP

(ii) Key Managerial Personnel

Mr. Purusottam Das Patodia Chairman & Managing Director Mr. Manoj Kumar Patodia Vice Chairman & Managing Director Mr. Anuj Patodia Managing Director

(iii) Enterprises having Common Key Management Personnel Pat Credit Limited

Anjana Syntex Co. Limited

(iv) Relatives of Key Managerial Personnel

Mrs.lndira Devi Patodia

wife of Mr. Purusottam Das Patodia

Mrs.Nandita Patodia

wife of Mr. Manoj Kumar Patodia

Mrs.Meenal Patodia

wife of Mr.Anuj Patodia

4 Consolidated Financial Statements:

As per Accounting Standard 21 on "Consolidated Financial Statements" and Accounting Standard 23 on "Accounting for Investments in Associates in Consolidated Financial Statements" notified under the "The Companies Accounting Standards Rules, 20,06" the company has presented Consolidated Financial Statements separately, in this annual report.

5. The exceptional items at the year end includes Share warrant expenses of Rs.4.77 lacs and Share of Loss from the Firm in which Company is a Partner with respect to Service Tax Liability of earlier years amounting to Rs.54.61 lacs.

6. Previous year''s figures are re-grouped/reclassified, wherever necessary inter-alia to conform to current year''s presentation.


Mar 31, 2013

1a. In the opinion of the management, assets other than fixed assets and non-current investments have a value on realization in the ordinary course of business at leas! equal to the amount at which they are stated.

b. The accounts of certain Trade Receivables, Trade Payables, Loans & Advances and Banks are however, subject to formal confirmations/reconciliations and consequent adjustments, if any. The management does not expect any material difference affecting the current period''s financial statements on such reconciliation/adjustments.

2 Consolidated Financial Statements :

As per Accounting Standard 21 on "Consolidated Financial Statements" and Accounting Standard 23 on ''Accounting for Investments in Associates in Consolidated Financial Statements" notified under the "The Companies Accounting Standards Rules. 2006" the company has presented Consolidated Financial Statements separately, in this annual report.

3. Previous year''s figures are re-grouped/reclassified, wherever necessary, inter-alia, to conform to current year''s presentation.


Mar 31, 2011

Rs. in thousands Rs. in thousands

1) Contingent liabilities not provided for in respect of 31.03.2011 31.03.2010

(a) Disputed tax demands (including interest upto the date of demand)

i) Sales tax, etc. 1,007 1,007

ii) Incometax 7,612 7,612

Total 8,619 8,619

(b) Export documentary bills discounted with Bank 30,050 63,735 (since realized Rs. 24,560 thousands ; previous year Rs. 63,735 thousands)

2) Secured loans dealt in Schedule 3 of the Balance Sheet are secured as under: -

1. Hire purchase loans for purchase of vehicles are secured by hypothecation of respective vehicles.

2. Working capital advances (Both Funded and Non-funded) from bank are secured by hypothecation of current assets and further secured by way of second charge over the land belonging to an Associate Company and further guaranteed by three of the Directors of the Company.

3) Disclosure in respect of related parties pursuant to Accounting Standard -18 (AS 18):- List of Related Parties and nature of relationships:

i) Where control exists: (Wholly owned subsidiary companies):

ATL Textile Processors Limited

Manoj Yarn Processors Limited

Pee Dee Yarn Processors Limited

Prime Hometex Industries (India) Limited

ii) Other Parties with whom the Company has entered into transactions during the year:

a) Associates: -

Aadarsh Jann Aawaash Limited

Prime Developers

Prime Mall Developers

Prime-Newline AOP

b) Key Managerial Personnel

Mr. Purshottam Patodia, Chairman & Managing Director

Mr. Manojjkumar Patodia, Vice Chairman & Managing Director

Mr. Anujj K. Patodia, Managing Director

c) Enterprises having Common key Management Personnel

Pat Credit Limited

Anjana Syntex Co. Limited

d) Relatives of Key Managerial Personnel:

Mrs. lndiradevi Patodia, wife of Mr. Purushottam Patodia

Mrs. Nandita Patodia, wife of Mr. Manojjkumar Patodia

Mrs. Meenal Patodia, wife of Mr. Anujj K. Patodia

4) As per Accounting Standard 21 on "Consolidated Financial Statements" and Accounting Standard 23 on "Accounting for Investments in Associates in Consolidated Financial Statements" notified under Rules, the company has presented consolidated financial statements separately, in this annual report.

5) (a) In the opinion of the Board of Directors, the "Current Assets, Loans and Advances" have a value on realization in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet.

(b) Balance of certain Debtors, Creditors and Advances are yet to reconciled and confirmed. In the opinion of the Management the difference would be insignificant.

6) a) Land to an extent of 5.02 acres has been converted from fixed assets to business asset and held as Stock-in-trade (held for development). The resultant gain on such conversion has been recognized in the Profit and Loss account.

b) Land to an extent of 0.7442 acres has been conveyanced to the local authorities by way of gift for Open Space Reserve and for Road Widening in order to comply with conditions to obtain necessary approvals for construction of Villa.

c) An extent of 1.216 acres earmarked to M/s. Newline Buildtech Private Limited towards twenty five percent of Development Rights as per the terms of agreement.

d) The Scheme of arrangement presented Under Section 391 of the Companies Act, 1956 entered into between the Company and their Shareholders has been approved by the Hon'ble Judicature of Madras Court on 22nd September, 2010 (financial year 2009-10). As per the Scheme, the Business Reconstruction Reserve Account was created through an exercise of reinstatd value of immovable properties of the Company at their fair values.

Consequent to the conversion into stock in trade and transfer of land mentioned in paras a, b & c, a sum of Rs. 9,10,352 thousands has been reversed from the Business Reconstruction Reserve.

7) The company had invested to an extent of Rs.45,500 thousands in wholly owned Subsidiary Company Ms. Prime Hometex Industries (India) Limited incorporated in 2007 for pursuing the project for manufacture of Home Textile Products. However in the light of continued depressed conditions in the home textile market, further progress in the project could not be made. The management is however, hopeful of pursuing with the project after prevailing conditions improve. Accordingly no provision for diminution in the value thereof is considered necessary.

8) There is no tax liability on the profits earned after considering the provisions of the Income Tax Act, 1961 for the regular computation as well as Minimum Alternate Tax under section 115JB.

9) Disclosure in respect of Accounting Standard 15" Employees Benefits" notified in the Companies (Accounting Standards) Rule 2007:

Employee Benefit

The gratuity liability is funded by Life Insurance Corporation of India under Group Gratuity Cash Accumulation Scheme

10. Previous year's figures are re-grouped/re-arranged, wherever necessary to conform to this year/s presentation.


Mar 31, 2010

Rs. in thousands Rs. in thousands

1) A) Contingent liabilities not provided for in respect of 31.03.2010 31.03.2009

(a) Disputed tax demands

i) Sales tax, cess etc. 1,007 1,007

ii) Incometax 7,612 7,612

Total 8,619 8,619

(b) Export documentary bills discounted with Bank 63,735 58,000 (since realized Rs.63,735 thousands previous year Rs. 37,144 thousands)

(c) Corporate Guarantee

i) ATL Textile Processors Limited subsidiary of the company 52,900 52,900 has given corporate guarantee to the working capital bankers of the company

ii) Manoj Yarn Processors Limited has given corporate 600 600 guarantee to the working capital bankers of the company

iii) Pee Dee Yarn Processors Limited has given corporate 400 400 guarantee to the working capital bankers of the company

2) Secured loans dealt in Schedule 3 of the Balance Sheet are secured as under: -

1. Hire purchase loans and terms loans for purchase of vehicles are secured by hypothecation of respective assets.

2. Working capital advances from bank are secured by hypothecation of current assets and further secured by way of second charge over the land belonging to an Associate Company and further guaranteed by three of the Directors of the Company.

3) Foreign Exchange transactions:

Amount of Foreign Exchange difference (net) credited in the Profit and Loss Account Rs.436 thousands [previous year (Rs.3,006) thousands

4) Disclosure in respect of related parties pursuant to Accounting Standard -18 (AS 18):- List of Related Parties and nature of relationships:

i) Where control exists: (Wholly owned subsidiary companies):

ATI Textile Processors Limited

Manoj Yarn Processors Limited

Pee Dee Yarn Processors Limited

Prime Hometex Industries (India) Limited

ii) Other Parties with whom the Company has entered into transactions during the year:

a) Associates:-

Aadarsh Jann Aawaash Limited ATLSelina Innerwear Private Limited Prime Developers Prime Mall Developers Prime-NewlineAOP

b) Key Managerial Personnel

Mr. Purshottam Patodia, Chairman & Managing Director

Mr. Manojjkumar Patodia, Vice Chairman & Managing Director

Mr. AnujjK.Patodia, Managing Director

c) Enterprises having Common key Management Personnel Pat Credit Limited

Anjana Syntex Co. Limited

d) Relatives of Key Managerial Personnel: Mrs.lndiradevi Patodia,wifeofMr. Purushottam Patodia Mrs. Nandita Patodia, wife of Mr. Manojjkumar Patodia Mrs.Meenal Patodia, wife of Mr.AnujjK. Patodia

5) As per Accounting Standard 21 on "Consolidated Financial Statements" and Accounting Standard 23 on "Accounting for Investments in Associates in Consolidated Financial Statements" notified under Rules, the company has presented consolidated financial statements separately, in this annual report.

6) (a) In the opinion of the Board of Directors, the "Current Assets, Loans and Advances" have a value on realization in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet. (b) Balance of certain Debtors, Creditors and Advances are yet to reconciled and confirmed. In the opinion of the Management the difference would be insignificant.

7) The Honble High Court of Madras vide its order 22nd September, 2010 approved a Scheme of Arrangement between the Company and its shareholders ("the Scheme"). The Scheme provides that with effect from 1st of April, 2009, the Appointed Date, a significant portion of Free hold Land, as the Company considers relevant and appropriate, will be reinstated at their respective fair values as determined by recognized valuers. Consequently, any adjustment on account of such reinstatement would be reflected in Business Reconstruction Reserve Account ("BRR") of the Company.

The Scheme further provides that the aggregate amount under the BRR created by way of reinstatement of Land and Building would be utilized, to the extent considered necessary and appropriate by the Board of Directors of the Company, from time to time, to adjust certain write off/impairment/diminution and other expenses as mentioned in the Scheme until the balance is available in the BRR account.

In terms of the Scheme, the Company had reinstated significant portion of its freehold land by creating Rs.24,74,868 thousands to the BRR and as per the Scheme, the BRR was further credited by an amount of Rs.54,000 thousands and Rs.65,000 thousands being the amounts standing to the credit of Securities Premium Account and Capital Redemption Account respectively as on 31st March, 2009. During the year, an amount of Rs. 64,615 thousands and Rs. 1,87,169 thousands were transferred from BRR to General Reserve and Profit and Loss account respectively. As per the Scheme, an aggregate amount Rs. 23,504 thousands was transferred from the BRR on account of the following expenses:

a) Amortised amount of VRS Compensation Rs.18,004 thousands

b) Exceptional / Extraordinary items Rs.5,500 thousands.

8) With Core business of the Company in textiles having been changed to the realty segment, the Company has changed its name as "Prime Urban Development India Limited" with effect from 5th July, 2010. ^-

9) The company had invested to an extent of Rs.45,500 thousands in wholly owned Subsidiary Company Ms.Prime Hometex Industries (India) Limited incorporated in 2007 for pursuing the project for manufacture of Home Textile Products. However in the light of continued depressed conditions in the home textile market and local problem thwarting efforts to acquire suitable lands, further progress in the project could not be made so far. The management is however, hopeful of pursuing with the project after prevailing conditions improve. Accordingly no provision for diminution in the value thereof is considered necessary.

10. Previous years figures are re-grouped/re-arranged, wherever necessary to conform to this year/s presentation.

 
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