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Notes to Accounts of Shah Construction Company Ltd.

Mar 31, 2014

1) SHARE CAPITAL

1.1 1650 Equity Shares out of the issued, subscribed and paid up share capital were allotted in part payment of Purchase Consideration.

1.2 1250 Equity Shares out of the issued, subscribed and paid up share capital were allotted in Consideration for giving Equivalent Foreign Exchange for Purchase of Capital Goods.

1.3 Shares held by Holding Company, its Subsidiaries and Associates

The Company does not have any holding company.

1.4 Rights, Preferences and restrictions attached to Shares

(a) Equity Shares

The company has one class of equity shares having a par value of Rs. 100 each. Each shareholder 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 event of liquidation the equity shareholders are eligible to receive the remaining assets of the company after distribution of all preferential amounts, in proportion to their shareholding.

(b) Preference Share

The Preference shares are redeemable. The Face value of the preference shares is Rs. 100. These shares carry a fixed cumulative dividend of 7% p.a. 7% dividend shall be payable in the each Financial Year beginning from the 2011-12 in event of company making profit. In the event of loss or in adequacy profit in any financial year no dividend shall be paid however dividend remaining said year in which there is a loss or inadequate profit the unpaid dividend for the particular year shall be carried forward. The preference share shall be Redeemable in terms of Companies Act 1956 after 7 years form the date of Allotment being 14th May, 2011 and shall be Redeemable on 14th May, 2018 or before or after 7 years as may be agreed by passing resolution at the meeting of the preference share holders as may be required.

2. FIXED ASSETS

The Company had sold Plot No. M-1 & M-2 of the land at Amboli to M/s. Akruti for Rs. 4,00,000/- as recorded in Agreement dated 18th August, 1980, Plot No. U-1 & U-2 of the land at Amboli to Mr. Suresh Goradia for Rs. 8,00,000/- as recorded in Agreement dated 15th April, 1981 and Plot No. K, L & T3 of the land at Amboli to Mr. Tejraj Gowani for Rs. 11,94,000/- as recorded in Agreement of 31-12-1979. The Company had handed over possession of the plots to the purchasers. The Company had also received consideration for the said agreements. Pending completion of formalities of the sold property, the amount received from the aforesaid three purchasers is shown as advance payments towards the sale of the said plots of land at Amboli, Andheri. During Financial year 2012-13 the company has paid to Collector the Levy on unearned income of Rs. 13,25,393/- in respect of these plots which has been debited to Land A/c.

3. In Shah Skyline Joint Venture, the Profit and Loss on incomplete joint venture has not been ascertained for the year 31.03.1998 to 31st March 2014. In the opinion of the Directors, there is no likely hood of any loss for the year.

4. The Company had sold Plot No. M-1 & M-2 of the land at Amboli to M/s. Akruti for Rs.4,00,000/- as recorded in Agreement dated 18th August, 1980, Plot No. U- 1 & U-2 of the land at Amboli to Mr. Suresh Goradia for Rs. 8,00,000/- as recorded in Agreement dated 15th April, 1981 and Plot No. K, L & T3 of the land at Amboli to Mr. Tejraj Gowani for Rs. 11,94,000/- as recorded in Agreement of 31-12-1979. The Company had handed over possession of the plots to the purchasers. The Company had also received consideration for the said agreements. Pending completion of formalities of the sold property, the amount received from the aforesaid three purchasers is shown as advance payments towards the sale of the said plots of land at Amboli, Andheri. During Financial year 2012-13 the company has paid to Collector the Levy on unearned income of Rs. 13,25,393/- in respect of these plots which has been debited to Land A/c.

5. The Company has not obtained confirmation for Debtors, Loans and Advances as well as Creditors in respect of their Debit and Credit Balance including unsecured loans, deposits & Joint Venture Partners..

6. In the opinion of the Directors:

(i) Current Assets, Loans, Advances and Investments have values, on realization in ordinary course of business, at least equal to the amount at which these are stated, subject to Note (iii) below.

(ii) (a) In respect of Preference Share Capital of Rs. 48.20 Crores (Previous Year Rs. 48.20 Crores) carrying a fixed cumulative dividend of 7% p.a. amounting to Rs. 3,37,40,000) (Previous Year Rs. 3,37,40,000/-), no provision is made for cumulative dividend payable in future in view of the loss incurred during the year.

(b) All the known liabilities have been provided for and there are no contingent liabilities other than those stated as such.

(iii) Assets & Liabilities of Foreign Branches in Iraq:

(a) There is likelihood of delay in realization of claims and mobilization of the assets situated at Iraq in view of understanding reached between the Government of Iraq & India.

(b) In respect of principal & interest receivable for projects in Iraq covered under Indo-Iraq Govt. to Govt. Deferred Payment Arrangements (DPA), Government of India under notification has issued Bonds in lieu thereof. Issue of Bonds to our Company is pending due to disputes under Deferred Payments Agreement (DPA).

(iv) The Company has valued its Current Assets, Current Liabilities and loans in Foreign Currency at the rate prevailing as on 30.06.1984.

(v) The debtors and deposits in India outstanding for more than 3 years amounting to Rs. 5,46,107/- (previous year Rs. 5,54,532/-) are considered good.

(vi) The Company is a going concern in spite of the accumulated losses since there is scope for wiping out these losses in view of the potentiality for developing existing assets, expected settlements with creditors, the projects under negotiation as well as the future prospects of the company.

7. Additional information under Schedule VI of the Companies Act 1956:

The Company''s activity being in the nature of Engineering and Construction, other provisions Part II of Schedule VI of the Companies Act, 1956 are not applicable.

8. Related Party Disclosures:

As per Accounting Standard 18, the disclosures of transactions with the related parties are given below:

(i) List of related parties where control exists and related parties with whom transactions have taken place and relationships:

a) Subsidiary Companies: NIL

b) Other related parts where control exits:-

(i) Gammon Shah

(ii) Shah Gammon Pvt. Ltd.

c) Key Management Personnel:

Mr. M. J. Shah.

Mr. S. D. Shah

Mr. Dinesh Kumar Poddar

d) Relatives of Key Management Personnel and their enterprises where transaction have taken Place.

Anchor Daewoo Industries Ltd.

Anchor Leasing Pvt. Ltd

Barindra Overseas Pvt. Ltd.

DRM Corporation

Alex Securities Pvt. Ltd.

Classic Electrical Ltd.

Good Value Financial Service Pvt. Ltd.

Real Value Leasing Pvt. Ltd.

Poddar Prints Pvt. Ltd.

Enicar Enterprises

Suvidha Vitran Private Limited

Note : Related party relationship is as identified by the Company and relied upon by the Auditors.

(ii) Transactions during the year with the Related Parties:

(a) (i) Interest free unsecured loan of Rs. NIL from Mr. M. J. Shah. Interest free unsecured Loan taken and repaid during Previous year Rs. 65,00,000 from Mr. M. J. Shah.

(ii) Interest free unsecured loan of Rs. NIL from Mr. S.D. Shah. Interest free unsecured Loan taken and repaid during Previous year Rs. 65,00,000 from Mr. S. D. Shah.

(b) Interest free Loan taken from Anchor Daewoo Industries Ltd. Rs. NIL (Previous year Rs. 6,17,65,000). Loan returned during the year Rs. 3,44,00,000 (Previous year Rs. 4,49,00,000). Balance as on 31/03/2014 is Rs. 14,48,83,773 (Previous years Rs. 17,92,83,773).

(c) Loan taken from Anchor Leasing Pvt. Ltd. Rs. 57,25,000 (Previous year Rs. 20,00,000). Loan returned during the year Rs. NIL (Previous year Rs. 3,72,42,778(Net)). Interest Rs. 4,68,596 (Previous year Rs. 5,95,426) paid thereon. Balance as on 31/03/2014 is Rs. 81,53,936 (Previous year Rs. 20,07,200).

(d) Interest free Loan taken from Barindra Overseas Pvt. Ltd. Rs. 73,00,000 (Previous year Rs.20,00,000). Balance as on 31/03/2014 is Rs 1,25,07,715 (Previous year Rs. 52,07,715).

(e) Advance of Rs. 10,00,000 (Previous year Rs. NIL) received from M/s DRM Corporation during the year. Balance as on 31/03/2014 is Rs. 10,00,000 (Previous year Rs. NIL).

(f) Purchased Security cabin of Rs. 40,000 (Previous year Rs. NIL) from M/s. Suvidha Vitaran Pvt. Ltd.

(g) Miscellaneous Works (Sales) transaction of Rs. 2,54,540 (Previous year Rs. 3,79,760 and purchase of Rs. NIL (Previous year Rs. 76,914) was carried out with M/s Alex Securities Pvt. Ltd.

(h) Loan taken from Classic Electrical Ltd. Rs. 1,73,00,000 (Previous year Rs. 20,00,000) and Interest Rs.10,35,934 (Previous Year Rs.7,452) paid thereon. Balance as on 31/03/2014 is Rs. 2,02,39,048 (Previous Year Rs 20,06,707).

(i) Loan taken from Good Value Financial Services Pvt. Ltd. Rs. 65,00,000 (Previous year Rs. 1,10,00,000) and Interest Rs. 20,53,974 (Previous Year Rs. 28,932) paid thereon. Balance as on 31/03/2014 is Rs. 1,93,74,616 (Previous Year Rs. 1,10,26,039).

(j) Interest free Loan taken from Poddar Prints Pvt. Ltd. Rs. NIL (Previous year Rs. 30,00,000). Loan Returned during the year Rs. 30,00,000 (Previous Year Rs. NIL) Balance as on 31/03/2014 is Rs. NIL (Previous Year 30,00,000).

(k) Loan taken from Real Value Leasing Pvt. Ltd. Rs. 60,00,000 (Previous Year 1,15,00,000) and Interest Rs. 20,57, 897 (Previous Year Rs. 30,247) paid thereon. Balance as on 31/03/2 014 is Rs 1,93,79,329 (Previous Year 1,15,27,222).

(l) Leave & License fees received from M/s. Enicar Enterprises of Rs. 39,00,000 (Previous year Rs. 39,00,000). Balance as on31/03/2014 is Rs. 3,28,650 (Previous year Rs. 12,46,294).

9. The operation of the Company represents wholly one segment of activity relating to construction. Accordingly all company''s assets and liabilities relate to this activity only.

10. In accordance with the accounting standard 22 on "Accounting for Taxes on Income" (AS 22) issued by the Institute of Chartered Accountants of India Deferred tax assets and liabilities should be recognised for all timing difference in accordance with the said standard. However, considering the present financial position and the requirement of the accounting standard regarding certainty/virtual certainty, the same is not provided for as an asset (Net). However, the same will be reassessed at a subsequent balance sheet date and will be accounted for in the year of certainty/virtual certainty in accordance with the aforesaid accounting standard.

11. Auditors Remuneration:

Audit Fees Rs.50,000/- (Previous Year Rs. 33,000/-)

For Taxation Matters Rs. 10,000/- (Previous year Rs. 10,000/-)

For Other Matters Rs. 42000/- (Previous year Rs. 16,500)

12. Computation of Net Profit under Section 349 of the Companies Act has not been given, as no remuneration is paid to Directors.

13. Figures for the Previous Year have been regrouped, reclassified and restated wherever necessary to conform to the current year presentation.


Mar 31, 2013

1 In Shah Skyline Joint Venture, the Profit and Loss on incomplete joint venture has not been ascertained for the year 31.03.1998 to 31st March 2013. In the opinion of the Directors, there is no likely hood of any loss for the year.

2(a) The Company had sold Plot No. M-1 & M-2 of the land at Amboli to M/s. Akruti for Rs. 4,00,000/- as recorded in Agreement dated 18th August, 1980, Plot No. U-1 & U-2 of the land at Amboli to Mr. Suresh Goradia for Rs. 8,00,000/- as recorded in Agreement dated 15th April, 1981 and Plot No. K, L & T3 of the land at Amboli to Mr. Tejraj Gowani for Rs. 11,94,000/- as recorded in Agreement of 31-12-1979. The Company had handed over possession of the plots to the purchasers. The Company had also received consideration for the said agreements. Pending completion of formalities of the sold property, the amount received from the aforesaid three purchasers is shown as advance payments towards the sale of the said plots of land at Amboli, Andheri. During Financial year 2012-13 the company has paid to Collector the Levy on unearned income of Rs.13,25,393/- in respect of these plots which has been debited to Land A/c.

(b) The sell of half of Company''s land at Amboli, Andheri (west), Mumbai, bearing Plot Nos. 20,21,21A,26 and 28(part) to Shri. Damji L. Shah & Shri. Jadavji L.Shah as recorded in Agreement dated 18/04/1985 was terminated during Financial Year 2010-11.

3. The Company has not obtained confirmation for Debtors, Loans and Advances as well as Creditors in respect of their Debit and Credit Balance including unsecured loans, deposits & Joint Venture Partners..

4. In the opinion of the Directors :

(i) Current Assets, Loans, Advances and Investments have values, on realization in ordinary course of business, at least equal to the amount at which these are stated, subject to Note (iii) below.

(ii) (a) In respect of Preference Share Capital of Rs. 48.20 Crores (Previous Year Rs. 48.20 Crores) carrying a fixed cumulative dividend of 7% p.a. amounting to Rs.

3,37,40,000) (Previous Year Rs. 3,37,40,000/-), no provision is made for cumulative dividend payable in future in view of the loss incurred during the year.

(b) All the known liabilities have been provided for and there are no contingent liabilities other than those stated as such.

(iii) Assets & Liabilities of Foreign Branches in Iraq:

(a) There is likelihood of delay in realization of claims and mobilization of the assets situated at Iraq in view of understanding reached between the Government of Iraq & India.

The book value of the Company''s assets & claims situated in Iraq aggregate to:

Current Assets Rs.10,18,52,400 Valued at rate as on 30.06.1984

Fixed Assets Rs. 8,97,58,355 At costs as per books

------------------

Rs.19,16,10,755 ===========

(b) In respect of principal & interest receivable for projects in Iraq covered under Indo-Iraq Govt. to Govt. Deferred Payment Arrangements (DPA), Government of India under notification has issued Bonds in lieu thereof. Issue of Bonds to our Company is pending due to disputes under Deferred Payments Agreement (DPA).

(iv) The Company has valued its Current Assets, Current Liabilities and loans in Foreign Currency at the rate prevailing as on 30.06.1984. The rates as on 31.03.2013 are not available due to United Nations Embargo.

(v) The debtors and deposits in India outstanding for more than 3 years amounting to Rs. 5,54,532/- (previous year Rs. 5,46,107/-) are considered good.

(vi) The Company is a going concern in spite of the accumulated losses since there is scope for wiping out these losses in view of the potentiality for developing existing assets, expected settlements with creditors, the projects under negotiation as well as the future prospects of the company.

5. Additional information under Schedule VI of the Companies Act 1956 :

The Company''s activity being in the nature of Engineering and Construction, other provisions Part II of Schedule VI of the Companies Act, 1956 are not applicable.

6. Related Party Disclosures :

As per Accounting Standard 18, the disclosures of transactions with the related parties are given below:

(ii) Transactions during the year with the Related Parties:

(a) (i)Interest free unsecured loan of Rs.65,00,000 (Previous year Rs.35,00,000) was taken & repaid during the year to Mr. M.J.Shah.

(ii) Interest free unsecured loan of Rs.65,00,000 (Previous year NIL) was taken & repaid during the year to Mr. S.D.Shah.

(b) Interest free Loan taken from Anchor Daewoo Industries Ltd. Rs. 6,17,65,000 (Net) (Previous year Rs.15,29,00,000(Net)). Balance as on 31/03/2013 is Rs.17,92,83,773 (Previous years Rs. 16,24,18,773). Interest paid during previous year was Rs. 1,05,76,415.

(c) Loan taken from Anchor Leasing Pvt. Ltd. Rs. 20,00,000 (Previous year Rs. 1,20,00,000). Loan returned during the year Rs. 3,72,42,778 (Previous year Rs. 59,62,18,411(Net)). Interest Rs.5,95,426 (Previous year Rs. 74,60,100) paid thereon. Balance as on 31/03/2013 is Rs.20,07,200 (Previous year Rs. 3,67,14,095).

(d) Interest free Loan taken from Barindra Overseas Pvt. Ltd. Rs. 20,00,000 (Previous year Rs.30,00,000). Balance as on 31/03/2013 is Rs 52,07,715 (Previous year Rs. 32,07,715). Interest paid during previous year was Rs. 2,30,795.

(e) Interest free unsecured loan of Rs.NIL (Previous year Rs. 4,50,000) was taken from M/s DRM Corporation during the year.

(f) Interest free unsecured loan of Rs.NIL (Previous year Rs. 20,00,000) was taken from M/s Alex Securities Pvt. Ltd during the year.

(g) Miscellaneous Works (Sales) transaction of Rs. 3,79,760 (Previous year Rs. 4,00,000) and purchase of Rs. 76,914 (Previous year Rs. NIL) was carried out with m/s Alex Securities Pvt. Ltd.

(h) Loan taken from Classic Electrical Ltd. Rs. 20,00,000 (Previous year Rs. NIL) and Interest Rs.7,452 paid thereon. Balance as on 31/03/2013 is Rs 20,06,707.

(i) Loan taken from Good Value Financial Services Pvt. Ltd. Rs. 1,10,00,000 (Previous year Rs. NIL) and Interest Rs.28,932 paid thereon. Balance as on 31/03/2013 is Rs 1,10,26,039.

(j) Interest free Loan taken from Poddar Prints Pvt. Ltd. Rs. 30,00,000 (Previous year Rs. NIL). Balance as on 31/03/2013 is Rs 30,00,000.

(k) Loan taken from Real Value Leasing Pvt. Ltd. Rs. 1,15,00,000 and Interest Rs.30,247 paid thereon. Balance as on 31/03/2013 is Rs 1,15,27,222.

(l) Leave & License fees received from M/s. Enicar Enterprises of Rs. 39,00,000 (Previous year Rs. 39,00,000). Balance as on31/03/2013 is Rs. 12,46,294 (Previous year Rs. 35,10,000).

7. The operation of the Company represents wholly one segment of activity relating to construction. Accordingly all company''s assets and liabilities relate to this activity only.

8. In accordance with the accounting standard 22 on "Accounting for Taxes on Income" (AS- 22) issued by the Institute of Chartered Accountants of India Deferred tax assets and liabilities should be recognised for all timing difference in accordance with the said standard. However, considering the present financial position and the requirement of the accounting standard regarding certainty/virtual certainty, the same is not provided for as an asset (Net). However, the same will be reassessed at a subsequent balance sheet date and will be accounted for in the year of certainty/virtual certainty in accordance with the aforesaid accounting standard.

9. Computation of Net Profit under Section 349 of the Companies Act has not been given, as no remuneration is paid to Directors.

10. Figures for the Previous Year have been regrouped, reclassified and restated wherever necessary to conform to the current year presentation.


Mar 31, 2012

1.1 1650 Equity Shares out of the issued' subscribed and paid up share capital were alloted in part payment of Purchase Consideration

1.2 1250 Equity Shares out of the issued' subscribed and paid up share capital were alloted in Consideration for giving Equivalent Foreign Exchange for Purchase of Capital Goods.

1.3 Shares held by Holding Company' its Subsidiaries and Associates

The Company does not have any holding company.

1.4 Rights' Preferences and restrictions attached to Shares

la) Eautv Shares

The company has one class of equity shares having a par value of Rs. 100 each. Each shareholder 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 event of liquidation the equity shareholders are eligible to receive the remaining assets of the company after distribution of all preferential amounts' in proportion to their shareholding.

(b) Preference Share

The Prefernce shares are redeemable. The Face value of the prefernce shares is Rs. 100. These shares carry a fixed cumulative dividend of 7% p.a. 7% dividend shall be payble in the each Finanicial Year beginning from the 2011-12 in event of company making profit.In the event of loss or in adquacy profit in any finanicial year no dividend shall be paid however dividend remaining said year in which there is a loss or inadiqute profit the unpaid dividend for the particular year shall be carried forward. The preference share shall be Reedamble in terms of Companies Act 1956 after 7 years form the date of Allotment being 14th May'2011 and shall be Reedamble on 14th May'2018 or before or after 7 years as may be agreed by passing resoulation at the meeting of the preference share holders as may be required.

Notes:

1 The Company had sold Plot No. M-l & M-2 of the land at Amboli to M/s. Akruti for Rs. 4'00'000/- as recorded in Agreement dated 18th August' 1980' Plot No. U-l & U-2 of the land at Amboli to Mr. Suresh Goradia for Rs. 8'00'000/- as recorded in Agreement dated 15th April' 1981 and Plot No. K' L & T3 of the land at Amboli to Mr. Tejraj Gowani for Rs. 11'94'000/-as recorded in Agreement of 31-12-1979. The Company had handed over possession of the plots to the purchasers. The Company had also received consideration for the said agreements. Pending completion of formalities of the sold property' the amount received from the aforesaid three purchasers is shown as advance payments towards the sale of the said plots of land at Amboli' Andheri.

2 The Sell of half of the land at Amboli' Mumbai bearing plot nos. 20'21' 21 A' and 28 (part) to Shri Damji L. Shah & Shri Jadavji L. Shah as recorded in agreement dt. 18th April' 1985 was terminated during the financial year 2010-2011.

2 In Shah Skyline Joint Venture' the Profit and Loss on incomplete joint venture has not been ascertained for the year 31.03.1998 to 31st March 2011. In the opinion of the Directors' there is no likely hood of any loss for the year.

3(a) The Company had sold Plot No. M-l & M-2 of the land at Amboli to M/s. Akruti for Rs. 4'00'000/- as recorded in Agreement dated 18th August' 1980' Plot No. U- 1 & U-2 of the land at Amboli to Mr. Suresh Goradia for Rs. 8'00'000/- as recorded in Agreement dated 15th April' 1981 and Plot No. K' L & T3 of the land at Amboli to Mr. Tejraj Gowani for Rs. 11'94'000/- as recorded in Agreement of 31-12-1979. The Company had handed over possession of the plots to the purchasers. The Company had also received consideration for the said agreements. Pending completion of formalities of the sold property' the amount received from the aforesaid three purchasers is shown as advance payments towards the sale of the said plots of land at Amboli' Andheri.

(b) The sell of half of Company's land at Amboli' Andheri (west)' Mumbai' bearing Plot Nos. 20'21'21A'26 and 28(part) to Shri. Damji L. Shah & Shri. Jadavji L.Shah as recorded in Agreement dated 18/04/1985 was terminated during Financial Year 2010-11.

4. The Company has not obtained confirmation for Debtors' Loans and Advances as well as Creditors in respect of their Debit and Credit Balance including unsecured loans' deposits & Joint Venture Partners..

5. In the opinion of the Directors :

(i) Current Assets' Loans' Advances and Investments have values' on realization in ordinary course of business' at least equal to the amount at which these are stated' subject to Note (iii) below.

(ii) All the known liabilities have been provided for and there are no contingent liabilities other than those stated as such.

iii) Assets & Liabilities of Foreign Branches in Iraq:

(a) There is likelihood of delay in realization of claims and mobilization of the assets situated at Iraq in view of understanding reached between the Government of Iraq & India.

The book value of the Company's assets & claims situated in Iraq aggregate to:

Current Assets Rs.l0'18'52'400 Valued at rate as on 30.06.1984 Fixed Assets Rs. 8'97'58'355 At costs as per books Rs.19'16'10'755

(b) In respect of principal & interest receivable for projects in Iraq covered under Indo-Iraq Govt' to Govt. Deferred Payment Arrangements (DPA)' Government of India under notification has issued Bonds in lieu thereof. Issue of Bonds to our Company is pending due to disputes under Deferred Payments Agreement (DPA).

(iv) The Company has valued its Current Assets' Current Liabilities and loans in Foreign Currency at the rate prevailing as on 30.06.1984. The rates as on 31.03.2012 are not available due to United Nations Embargo.

(v) The debtors and deposits in India outstanding for more than 3 years amounting to Rs.5'46'107/- (previous year Rs. 5'46'107/-) are considered good.

(vi) The Company is a going concern in spite of the accumulated losses since there is scope for wiping out these losses in view of the potentiality for developing existing assets' expected settlements with creditors' the projects under negotiation as well as the future prospects of the company.

6. Additional information under Schedule VI of the Companies Act 1956 :

The Company's activity being in the nature of Engineering and Construction' other provisions Part II of Schedule VI of the Companies Act' 1956 are not applicable.

7. Related Party Disclosures :

As per Accounting Standard 18' the disclosures of transactions with the related parties are given below: (i) List of related parties where control exists and related parties with whom transactions have taken place and relationships:

(ii) Transactions during the year with the Related Parties:

(a) Interest free unsecured loan of Rs.35 Lakhs was taken & repaid during the year to Mr. M.J.Shah during the year..

(b) Loan taken from Anchor Daewoo Industries Ltd. Rs. 15'29'00'000 (Net) and Interest Rs. 1'05'76'415 paid thereon. Balance as on 31/03/2012 is Rs. 16'24'18'773

(c) Loan Returned to Anchor Leasing Pvt. Ltd. Rs. 59'62'18'411 (Net) (Previous year Rs. 25'65'000) and Interest Rs.74'60'100 (Previous year Rs. 4'26'28'143) paid thereon. Balance as on 31/03/2012 is Rs.3'67'14'095 (Previous year Rs. 62'62'18'416).

(d) Loan taken from Barindra Overseas Pvt. Ltd. Rs. 30'00'000 and Interest Rs.2'30'795 paid thereon. Balance as on 31/03/2012 is Rs 32'07'715

(e) Interest free unsecured loan of Rs.4'50'000 was taken & repaid during the year to m/s DRM Corporation during the year..

(e) Interest free unsecured loan of Rs.20'00'000 was taken & repaid during the year to m/s Alex Securities Pvt. Ltd. during the year.

(f) Miscellaneous Works (Sales) transaction of Rs. 4'00'000 was carried out with m/s Alex Securities Pvt. Ltd..

8. The operation of the Company represents wholly one segment of activity relating to construction. Accordingly all company's assets and liabilities relate to this activity only.

9. In accordance with the accounting standard 22 on "Accounting for Taxes on Income" (AS 22) issued by the Institute of Chartered Accountants of India Deferred tax assets and liabilities should be recognised for all timing difference in accordance with the said standard. However' considering the present financial position and the requirement of the accounting standard regarding certainty/virtual certainty' the same is not provided for as an asset (Net). However' the same will be reassessed at a subsequent balance sheet date and will be accounted for in the year of certainty/virtual certainty in accordance with the aforesaid accounting standard.

10. Auditors Remuneration:

Audit Fees Rs.30'000/- (Previous Year Rs. 20'000/-)

For Taxation Matters Rs. 10'000/- (Previous year Rs. 10'000/-)

11. Computation of Net Profit under Section 349 of the Companies Act has not been given' as no remuneration is paid to Directors.

12. Figures for the Previous Year have been regrouped' reclassified and restated wherever necessary to conform to the current year presentation..


Mar 31, 2010

1. The Company is a partner in the following partnership firms.

Nome of the Partnership Name of the Partners Share in P/L

M/s.Gammon Shah (i) Gammon India Ltd. 50%

(ii) Shah Const. Co. Ltd. 50%

During the year the Company has Written Off its Capital contribution of Rs. 25,000/-

2. In Shah Skyline Joint Venture, the Profit and Loss on incomplete joint venture has not been ascertained for the year 31.03.1998 to 31st March 2010. In the opinion of the Directors, there is no likelyhood of any loss for the year.

3(a) The Company had sold Plot No. M-1 & M-2 of the land at Amboli to M/s. Akruti for Rs. 4,00,000/- as recorded in Agreement dated 18th August, 1980, Plot No. U-1 & U-2 of the land at Amboli to Mr. Suresh Goradia for Rs. 8,00,000/-as recorded in Agreement dated 15th April, 1981 and Plot No. K, L&T3 of the land at Amboli to Mr. Tejraj Gowani for Rs. 11,94,000/- as recorded in Agreement of 31-1 2-1979. The Company had handed over possession of the plots to the purchasers. The Company had also received consideration for the said agreements. Pending completion of formalities of the sold property, the amount received from the aforesaid three purchasers is shown as advance payments towards the sale of the said plots of land at Amboli, Andheri.

(b) The company had sold half of the land atAmboli, bearing plot nos. 20, 21, 21 A, 26, 28 (part) to Shri Damji L. Shah & Shri Jadavji L. Shah for Rs. one crore as recorded in agreement dt. 18th April, 1985. The Purchasers paid full consideration of Rs. one crores directly to Dena Bank in settlement of companys entire dues to the Bank whereby, the pari pasu mortgage of the aforesaid land with Dena Bank was redeemed. The possession of the said half property was handed over to the purchasers on 18th April, 1985 as per clauses (2) of the aforesaid agreement dated 18th April, 1985. Pending completion of formalities of the sold property, the amount received from Shri Damji L. Shah & Shri Jadavji L. Shah is shown as advance payment towards the said half property.

4. The Company has not obtained confirmation for Debtors, Loans and Advances as well as Creditors in respect of their Debit and Credit Balance including unsecured loans, deposits & Joint Venture Partners. See Note No.2 above.

5. In the opinion of the Directors :

(i) Current Assets, Loans, Advances and Investments have value on realization in ordinary course of business at least equal to the amount at which these are stated.

(ii) All the known liabilities have been provided for and there are no contingent liabilities other than those stated as such.

iii) There is likelihood of delay in realization of claims and mobilization of the assets situated at Iraq in view of understanding reached between the Government of Iraq & India.

The book value of the Companys assets & claims situated in Iraq aggregate to :

Current Assets Rs.l 0,18,52,400 Valued at rates of

Fixed Assets Rs.8,97,58,355 At costs as per books

Rs.l 9,16,10,755

iv) In respect of the outstanding dues of the Banks under the Deferred Payments, Government of India under notification has issued Bonds in lieu thereof. Issue of Bonds 1o our Company is pending due to disputes under Deferred Payments Agreement (DPA).

(v) The debtors and deposits in India outstanding for more than 3 years amounting to Rs.5,46,107/ (previous year Rs. 5,46,107/-) are considered good.

(vi) The Company is a going concern inspite of the accumulated losses since there is scope for wiping out these losses in view of the potentiality for developing existing assets, expected settlements with creditors, the projects under negotiation as well as the future prospects of the company.

6. Additional information under Schedule VI of the Companies Act 1 956 : The Companys activity being in the nature of Engineering and Construction the provisions of para 4C of part II of Schedule VI of the Companies Act, 1956 are not applicable.

7. The Company has valued its Current Assets, Current Liabilities and loans in Foreign Currency at the rate prevailing as on 30.06.1984. The rates as on 31.03.2010 are not available due io United Nations Embargo.

2) Transactions carried out with related parties referred in (1) above.

Nature of Transaction Related Parties.

Partners Capital A/c. Written Off. Rs. 25,000/- Gammon Shah

Shares Investment Written Off. Rs. 25,000/- Shah Gammon Pvt. Ltd.

10. The operation of the Company represents wholly one segment of activity relating to construction. Accordingly all companys assets and liabilities relate to this activity only.

11. In accordance with the accounting standard 22 on "Accounting for Taxes on Income" (AS 22) issued by the Institute of Chartered Accountants of India Deferred tax assets and liabilities should be recognised for all timing difference in accordance with the said standard. However, considering the present financial position and the requirement of the accounting standard regarding certainty/virtual certainty, the same is not provided for as an asset (Net). However, the same will be reassessed at a subsequent balance sheet date and will be accounted for in the year of certainty/virtual certainty in accordance with the aforesaid accounting standard.

12. Auditors Remuneration :

As Audit Fees Rs. 20,000/- (Previous Year Rs. 20,000/-)

13. Computation of Net Profit under Section 349 of the Companies Act has not been given, as no remuneration is paid to Directors.

14. Figures for the Previous Year have been regrouped wherever necessary.

15. BALANCESHEET ABSTRACT AND COMPANYS GENERAL PROFILE (Submitted in terms of Part IV of Schedule VI to the Companies Act, 1956)

III. Position of Mobilisation & Deployment of Funds (Amounts in Rs. 000)

IV Performance of the Company (Amount in Rs. 000)

V. Generic Names of three Principle Services of the Company (as per monetary terms)

 
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