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Notes to Accounts of Sunteck Realty Ltd.

Mar 31, 2016

b. Terms/rights attached to Equity shares

The Company has only one class of equity share having value of Rs. 2 each with an entitlement of one vote per share. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors are subject to the approval of the shareholders in the ensuing annual general meeting. In the event of liquidation of the Company, the holder of equity shares will be entitled to receive any of the remaining assets of the Company, after distribution of all preferential amounts. However, no such preferential amounts exist currently. The distribution will be in proportion to the number of equity shares held by the shareholders.

c. Shares held by Subsidiaries

3,000,000 (Previous Year 3,000,000) equity shares out of issued, subscribed and paid up share capital are held by subsidiary Companies.

The Company uses the intrinsic value-based method of accounting for the compensation cost of stock options. Intrinsic value is the amount by which the quoted market price of the underlying shares as on date of the grant exceeds the exercise price of the option. Had the compensation cost of stock options been determined in the manner consistent with the fair value approach based on Black and Scholes model, the Company''s net profit would be lower by Rs. 9,939,184, (Previous Year: lower by Rs. 16,101,908) and Basic/Diluted earnings per share would be Rs. 22.09 (Previous year : Rs. 11.61) as against reported Basic / Diluted earnings per shares of Rs. 22.24 (Previous year 11.86)

Terms and Conditions for Short-Term Borrowings Non Convertible Debentures

a) 2,000 (Previous year Nil) @ 11.75% Non-Convertible Debentures Series "A” of Rs. 1,00,000 each

b) Repayment Terms: Redeemable at par on 13th January, 2017

c) For security : Refer note no. 4 above.

Term Loan From a Bank

a) The term loan is secured by:

i) First mortgage charge over the property (i.e land situated at Andheri, in the name of Poonam CHS, to be developed by the Company for Project - Signia Pride) and the rights to develop the said property. Charge on all present and future current assets relating to the said project.

ii) Assignment of receivables from the project - Signia Pride and assignment of rights to develope the aforesaid property

b) The rate of interest on above loan facility is sum of SBI Base rate and 1.25% spread per annum. During the year, Base rate was 9.30% p.a. (Previous year N.A.)

c) Repayment schedule (refer table below)

Term Loan From Others - LIC Housing Finance Limited

a) First mortgage charge over the property (i.e project land and structure thereon of project "Signia High” situated at Borivali and assignment of receivables from the project - Signia High

b) The interest rate on above term loan is base rate less 1.50% spread per annum. During the year, base rate 14.70% p.a. (Previous year 15.50% p.a.)

c) Repayment schedule (refer table below)

Bank Overdraft

The Company has a overdraft facility with a limit of Rs. 203,300,000 (previous year Rs. 220,000,000) from Kotak Mahindra Bank Limited. The same is secured by way of mortgage of a portion of 4th floor in wing A and wing B of the building "Sunteck Centre”. The rate of interest on the said overdraft facility is base rate plus 2.50% spread per annum. During the year, base rate was in the range of 9.50% - 10.00% p.a. (Previous year 10.00% p.a.)

1. Related Party Disclosures As per Accounting Standard 18, the disclosures of related parties and transactions with them are given below: 1 Name of the Related Parties : (i) Related parties where control exists, irrespective of whether transaction has been entered into or not: a Subsidiary Companies :

Amenity Software Private Limited Magenta Computer Software Private Limited Satguru Infocorp Services Private Limited Starlight Systems Private Limited Sunteck Property Holdings Private Limited Sunteck Realty Holdings Private Limited Skystar Buildcon Private Limited Sahrish Construction Private Limited Sunteck Fashion & Lifestyle Private Limited Advaith Infraprojects Private Limited Starteck Lifestyle Private Limited Satguru Corporate Services Private Limited

Sunteck Real Estates Private Limited (From 13th December, 2015)

Sunteck Infraprojects Private Limited (From 17th December, 2015)

Denise Realties Private Limited (From 17th October, 2015)

Eleanor Lifespaces Private Limited (From 17th October, 2015)

Sunteck Lifestyle International Private Limited (Foreign Subsidiary)

Sunteck Lifestyles Limited (Foreign & Step down Subsidiary)

Sunteck Lifestyles Management JLT (Foreign & Step down Subsidiary)

b LLPs :

Starlight Systems (I) LLP Mithra Buildcon LLP

(ii) Other related parties with whom transactions has been entered during the year a Joint Ventures :

GGICO Sunteck Limited

Piramal Sunteck Realty Private Limited

Uniworth Realty LLP

Nariman Infrastructure LLP

Pathway Buildcon LLP

Assable Buildcon LLP

Kanaka & Associates (Partnership Firm)

b Associates:

Topzone Mercantile Company LLP

c Key Management Personnel

Mr. Kamal Khetan - Chairman & Managing Director

Mr. Jignesh Sanghavi - Executive Director (Retired on 29th September, 2015)

Mr. Atul Poopal - Executive Director (From 29th September, 2015)

Mrs. Rachana Hingarajia - Company Secretary

Mr. Sumesh Mishra - Chief Operating Officer (From 29th May, 2015)

d Entities over which Key Management Personnel with his relative having significant influence:

Nivedita Mercantile And Financing Limited S W Capital Private Limited

S W Commodities Private Limited

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

2. Pursuant to enactment of the Companies Act, 2013 (the Act), the Company had, effective 1st April, 2014, reviewed and revised the useful life of certain tangible fixed assets, in accordance with Schedule II of the Act. The Company had given impact of Rs.455,862 on account of assets whose useful life has already been exhausted on 1st April, 2014 to Retained Earnings. Further, in case of assets acquired prior to 1st April,2014, the carrying value of assets is depreciated over the remaining useful life determined by the Schedule II of the Act. Consequently, depreciation expense for the previous year was higher by Rs.2,878,224.

3. As the Company is primarily engaged in only one business segment Viz. " Real Estate/ Real Estate Development and related activities” and substantial activities are carried out in India, there are no separate reportable segments as per Accounting Standard -17 " Segment Reporting”.

4. 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 other 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.

5. a. I n the opinion of the board, all the 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 these are stated.

b. The accounts of certain trade receivables, trade payables, loans and advances and banks are, however, subject to formal confirmations or reconciliations and consequent adjustments, if any. However there is no indication of dispute on these accounts, other than those mentioned in the financial statements. The management does not expect any material difference affecting the current year''s financial statements on such reconciliation/adjustments.

6. Undistributed accumulated profits amounting to Rs. 14,217,692 in the previous year (included in current account balance in LLP) represents accumulated profit of the investee company, namely Starlight Systems

(I) Private Limited which was converted into LLP on 22nd March,2013. The said accumulated profit can be distributed by the LLP after 21st March, 2016 .

46 Pursuant to the approval to the Scheme of Amalgamation/Arrangement (the ''Scheme'') by the Hon''ble Bombay High Court vide its Order dated 19th December, 2014, all assets and liabilities of erstwhile Sanchit Derivatives Private Limited, (referred to as the "Transferor company” hereinafter), were transferred to and vested in the Company (referred to as the "Transferee company” hereinafter) from 15th January, 2014, the appointed date. The Scheme became effective on 14th February, 2015 upon filing of court order with the Registrar of Companies, Maharashtra. Accordingly, the effect of the Scheme was given in financial statements of financial year 2014-15.

The amalgamation had been accounted for under the Purchase method as specified by the Accounting Standard AS - 14 "Accounting for Amalgamations” prescribed under section 133 of the Companies Act, 2013 (''the Act'') read with Rule 7 of the Companies (Accounts) Rules, 2014. As on the appointed date, the Transferor company was holding 8,863,845 equity shares of face value of Rs. 2 each of the Transferee company as Investment, which has been cancelled pursuant to the scheme. 8,863,845 equity shares of face value of Rs. 2 each of the Transferee company has been issued to shareholders of Transferor company towards purchase consideration. The difference between excess of the net assets value of the Transferor Company transferred

& recorded by the Transferee Company at their respective book values after cancellation of investments, over purchase consideration was recorded as Capital reserve.

7. The Company is a partner in a partnership firm, Kanaka & Associates, in which the Company has total exposure comprising of capital invested, and other receivables aggregating to Rs. 86,130,854. Pending settlement of dispute with the other 50% partner and non availability of financial statement for the current year, the Company has not accounted for its share of loss for the year. Necessary steps for resolving the dispute, including filing arbitration petition in the High Court, have been taken. The management does not expect any material financial impact on settlement of dispute.

8 . The Company has overdue trade receivables of Rs. 120,350,000 (previous year Rs. 120,350,000) in respect of which necessary steps for its recovery has been taken including filing of legal case . The management is confident of recovering the said due and therefore no provision, in their opinion, is considered necessary at this stage.

9. Figures pertaining to Previous Year have been regrouped / reclassified wherever found necessary to conform to Current Year presentation.


Mar 31, 2015

1. Terms/rights attached to Equity shares

"The Company has only one class of equity share having value of Rs. 2 each with an entitlement of one vote per share. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors are subject to the approval of the shareholders in the ensuing annual general meeting. In the event of liquidation of the Company, the holder of equity shares will be entitled to receive any of the remaining assets of the Company, after distribution of all preferential amounts. However, no such preferential amounts exist currently. The distribution will be in proportion to the number of equity shares held by the shareholders. "

2. Shares held by Subsidiaries

3,000,000 (Previous Year 3,000,000) equity shares out of issued, subscribed and paid up share capital are held by subsidiary Companies.

The Company uses the intrinsic value-based method of accounting for the compensation cost of stock options. Intrinsic value is the amount by which the quoted market price of the underlying shares as on date of the grant exceeds the exercise price of the option. Had the compensation cost of stock options been determined in the manner consistent with the fair value approach based on Black and Scholes model, the Company's net profit would be lower by Rs. 16,101,908, (Previous Year: lower by Rs. 9,764,198) and Basic/Diluted earning per share would be Rs. 11.61 (Previous year : Rs. 21.66) as against reported Basic / Diluted earning per shares of Rs. 11.86 (Previous year 21.81)

3.Terms and Conditions for Secured Loan

From a Bank - ICICI bank Limited

a) The term loan is secured by way of mortgage of land situated at borivali (realty project - signia high) and andheri (realty project - sunteck grandeur) and receivables thereon.

b) The term loan is further secured by way of lien on fixed deposits with bank of Rs. Nil; (Previous Year Rs. 23,484,464).

c) The interest rate on above term loan was I-base rate plus 4.5% spread.

d) Repayment schedule of secured term loan (refer note below)

From Others - LIC Housing Finance Limited

a) The term loan is secured by way of mortgage of land situated at borivali (realty project - signia high) and receivables thereon.

b) The interest rate on above term loan is LHPLR less 1.5% spread. Current LHPLR is 15.5%

c) Repayment schedule of secured term loan (refer note below)

4. Contingent liabilities and commitments

a) Contingent Liabilities (to the extent not provided for)

Income Tax Matters 6,207,795 6,207,795

Guarantee given on behalf of a step down subsidiary by way of Standby letter of Credit 1,549,122,300 -

Total 1,555,330,095 6,207,795

b) The Company's pending litigations comprise of claims against the Company and proceedings pending with tax and other authorities. The Company has reviewed all its pending litigations and proceedings and disclosed the contingent liabilities, wherever applicable in its financial statements. The Company does not reasonably expect the outcome of these proceedings to have a material impact on its financial statements.

5. Related Party Disclosures

1 Name of the Related Parties :

(i) Related parties where control exists, irrespective of whether transaction has occurred or not: a Subsidiary Companies/ LLP :

Amenity Software Private Limited

Magenta Computer Software Private Limited

Satguru Infocorp Services Private Limited

Starlight Systems Private Limited

Sunteck Property Holdings Private Limited

Sunteck Realty Holdings Private Limited

Skystar Buildcon Private Limited

Sahrish Construction Private Limited

Sunteck Fashion & Lifestyle Private Limited

Advaith Infraprojects Private Limited (From 01st October, 2014)

Starteck Lifestyle Private Limited (From 01st October, 2014)

Satguru Corporate Services Private Limited (Step down Subsidiary From 01st October, 2014) Sunteck Lifestyle International Private Limited (Foreign Subsidiary)

Sunteck Lifestyles Limited (Foreign & Step down Subsidiary)

Sunteck Lifestyles Management JLT (Foreign & Step down Subsidiary from 20th March, 2014)

Starlight Systems (I) LLP

Mithra Buildcon LLP (From 08th August, 2014)

(ii) Related Parties with whom transactions have taken place during the year a Joint Ventures :

Piramal Sunteck Realty Private Limited Uniworth Realty LLP Nariman Infrastructure LLP Pathway Buildcon LLP Assable Buildcon LLP Kanaka & Associates (Partnership Firm) b Other Associates:

Topzone Mercantile Company LLP c Key Management Personnel:

Mr. Kamal Khetan - Chairman & Managing Director Mr. Jignesh Sanghavi - Executive Director Mrs. Rachana Hingarajia - Company Secretary

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

6. Pursuant to enachment of Companies Act, 2013 ( the Act), the Company has, effective 1st April, 2014, reviewed andrevised the useful life of certain tangible fixed assets, in accordance with Schedule II of the Act. Accordingly, the Company has given impact of Rs.455,862 on account of assets whise useful life already exhausted on 1st April,2014 to Retained Earnings. Further, in case of assets acquired prior to 1st April,2014, the carrying value of assets is depreciated over the remaining useful life determined by the Schedule II of the Act. Consequently, depreciaion expenses for the year are higher by Rs.2,878,224/-.

7. As the company is primarily engaged in only one business segment Viz. " Real Estate/ Real Estate Development and related activities" and substantial activities are carried out in India, there are no separate reportable segments as per Accounting Standard -17 " Segment Reporting".

8. 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 other 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.

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

b. The accounts of certain trade receivables, trade payables, loans and advances and banks are, however, subject to formal confirmations or reconciliations and consequent adjustments, if any. However there is no indication of dispute on these accounts, other than those mentioned in the financial statements. The management does not expect any material difference affecting the current year's financial statements on such reconciliation/adjustments.

10. Undistributed accumulated profits amounting to Rs. 14,217,692 (included in current account balance in LLP) represents accumulated profit of the investee company, namely Starlight Systems (I) Private Limited which was converted into LLP on 22nd March,2013. the said accumulated profit can be distributed by the LLP after the end of 3 years for the date of conversion.

11. "Pursuant to the approval to the Scheme of Amalgamation/Arrangement (the 'Scheme') by the Hon'ble Bombay High Court vide its Order dated 19th December, 2014, all assets and liabilities of erstwhile Sanchit Derivatives Private Limited, (referred to as the "Transferor company" hereinafter), were transferred to and vested in the Company (referred to as the "Transferee company" hereinafter) from 15th January, 2014, the appointed date. The Scheme became effective on 14th February, 2015 upon filing of court order with the Registrar of Companies, Maharashtra. Accordingly, the effect of the Scheme has been given in this financial statements.

The amalgamation has been accounted for under the Purchase method as specified by the Accounting Standard AS - 14 "Accounting for Amalgamations" prescribed under section 133 of the Companies Act, 2013 ('the Act') read with Rule 7 of the Companies (Accounts) Rules, 2014. As on the appointed date, the Transferor company was holding 8,863,845 equity shares of face value of Rs. 2 each of the Transferee company as Investment, which has been cancelled pursuant to the scheme. 8,863,845 equity shares of face value of Rs. 2 each of the Transferee company has been issued to shareholders of Transferor company towards purchase consideration. The difference between excess of the net assets value of the Transferor Company transferred & recorded by the Transferee Company at their respective book values after cancellation of investments, over purchase consideration has been recorded as Capital reserve. "

12. Figures pertaining to Previous Year have been regrouped / reclassified wherever found necessary to conform to Current Year presentation.


Mar 31, 2014

(Amount in Rs.)

Particulars 31.03.14 31.03.13

1 Contingent liabilities and commitments

a) Contingent Liabilities (to the extent not provided for) Income Tax Matters 6,207,795 -

Total 6,207,795 -

2 Related Party Disclosures

1 Name of the Related Parties :

(i) Related parties where control exists, irrespective of whether transaction has occurred or not: a Subsidiary Companies:

Amenity Software Private Limited

Magenta Computer Software Private Limited

Satguru Infocorp Services Private Limited

Starlight Systems Private Limited

Sunteck Property Holdings Private Limited

Sunteck Realty Holdings Private Limited (From 25th April 2013)

Skystar Buildcon Private Limited

Sahrish Construction Private Limited

Eleanor Lifespaces Private Limited (formerly known as Signature Island

Buildcon Private Limited) (up to 31st December, 2013)

Sunteck Fashion & Lifestyle Private Limited (from 15th March 2014)

Sunteck Lifestyles International Private Limited (Foreign Subsidiary) (From 25th October 2013)

Sunteck Lifestyle Limited (Foreign Subsidiary) (From 6th November 2013)

Advaith Infraprojects Private Limited

Starlight Systems (I) LLP

(ii) Related Parties with whom transactions have taken place during the year a Joint Ventures :

Piramal Sunteck Realty Private Limited

V3 Designs LLP (upto 17th May 2013)

Uniworth Realty LLP

Nariman Infrastructure LLP

Pathway Buildcon LLP

Assable Buildcon LLP

Kanaka and Associates (Partnership Firm)

b Other Associates:

Topzone Mercantile Company LLP

c Key Management Personnel:

Mr. Kamal Khetan – Chairman & Managing Director Mr. Jignesh Sanghavi – Whole Time Director

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

3 Exceptional item in the Previous Year, represents amount paid towards stamp duty and registration charges (crystalised during the Previous Year) on account of amalgamation of two Companies with the holding Company in the year 2008-09

4 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 other 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.

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

b. The accounts of certain trade receivables, trade payables, loans and advances and banks are, however, subject to formal confirmations or reconciliations and consequent adjustments, if any. However there is no indication of dispute on these accounts, other than those mentioned in the financial statements. The management does not expect any material difference affecting the current year''s financial statements on such reconciliation/adjustments.

6 One of the investee company is being covered under the definition of "Subsidiary" as per section 2(87) of the Companies Act, 2013, therefore the same has been disclosed as subsidiary, even though the same is not a subsidiary company as per provisions of Accounting Standard 21 consolidated financial statements.

7 Share of profit from Limited Liability Partnership (LLP) represents accumulated profit of the investee Company, namely Starlight Systems (I) Private Limited which was converted in the LLP during the Previous Year. The carrying value of investment of Rs. 80,000 was in terms of the LLP agreement considered as fixed capital. The aforesaid accumulated profit included in ''current account balance in LLP'' can be distributed by the LLP after the end of 3 years from the date of conversion. i.e. 22nd March, 2013.

8 Figures pertaining to Previous Year have been regrouped / reclassified wherever found necessary to conform to Current Year presentation.


Mar 31, 2013

1 Lease

a. Initial direct cost such as Legal cost, Brokerage cost etc. are charged immediately to Statement of Profit and Loss.

c. Lease income recognized in Statement of Profit and Loss for the year ended 31st March, 2013 is Rs. 56,834,625/-(Previous Year Rs. 55,419,887).

2 Related Party Disclosures

1 Name of the Related Parties :

(i) Related Parties where control exists, irrespective of whether transcation has occured or not:

a Subsidiary Companies:

Amenity Software Private Limited

Magenta Computer Software Private Limited

Satguru Infocorp Services Private Limited

Starlight Systems Private Limited

Sunteck Property Holdings Private Limited

Skystar Buildcon Private Limited

Starlight Systems (I) Private Limited (up to 21st March, 2013)

Sahrish Construction Pvt. Ltd.(from 10th July, 2012)

Eleanor Lifespaces Pvt. Ltd. (formerly known as Signature Island Buildcon Pvt. Ltd.)

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

a Joint Ventures :

Piramal Sunteck Realty Private Limited

Piramal Sunteck Realty Mauritius Limited (up to 14th September, 2012)

Piramal Sunteck International Limited (up to 14th September, 2012)

V3 Designs LLP

Uniworth Realty LLP

Nariman Infrastructure LLP

Pathway Buildcon LLP

Assable Buildcon LLP

Starlight Systems (I) LLP (from 22nd March, 2013)

b Partnership Firm:

Kanaka and Associates

c Other Associates:

Topzone Mercantile Company LLP

d Key Management Personnel:

Mr. Kamal Khetan – Chairman & Managing Director Mr. Jignesh Sanghavi – Whole Time Director

e Entity/Person/s having Significant Influence:

Starteck Infraprojects Private Limited

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

3. Investments in Joint Ventures and the company''s share in their Assets & Liabilities, Income & Expenditure, Profit & Loss and Contingent Liability.

The interest of the Company in Joint ventures is listed below :

Piramal Sunteck Realty Private Limited (PSRPL) -50%

Piramal Sunteck Realty Mauritius Limited (PSRML) -50%

Piramal Sunteck International Limited (PSIL) -50%

Nariman Infrastructure LLP (NIL) -50%

Uniworth Realty LLP (URL)-50%

V3 Designs LLP (VDL) -50%

Assable Buildcon LLP (ABL) 50%

Pathway Buildcon LLP (PBL) 50%

Kanaka and Associates (Partnership Firm)50%

4 Exceptional item represents amount paid towards stamp duty and registration charges (crystalised during the year) on account of amalgamation of two companies with the company in the year 2008-09.

5 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 other 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.

6 a. In the opinion of the management, all the assets other than fixed assets and non- current investments have a value on realisation in the ordinary course of business atleast equal to the amount at which these are stated.

b. The accounts of certain Trade Receivables, Trade Payables, Loans and Advances and banks are, however, subject to formal confirmations or reconciliations and consequent adjustments, if any. However there is no indication of dispute on these accounts, other than those mentioned in the Financial Statements. The management does not expect any material difference affecting the current year’s financial statements on such reconciliation/adjustments.

7 Share of Profit from LLP represents accumulated profit of the investee company, namely starlight System (I) Pvt. Ltd. which was converted in the Limited Liability Partnership(LLP) during the year.The carrying value of investment of Rs. 80,000 has in terms of the LLP agreement considered as fixed capital.The aforesaid accumulated profit included in '' Current account balance in LLP'' can be distributed by the LLP after the end of 3 years from the date of conversion. i.e. 22nd March, 2013.

8 Previous year''s figures have been regrouped / rearranged wherever necessary to conform to current year''s classification.


Mar 31, 2012

1 Contingent liabilities and commitments (to the extent not provided for)



(Amount in Rs.)

a. Contingent Liabilities 31.03.12 31.03.11

(i) Income tax 3,845,122 1,070,059

(ii) Stamp duty and registration charges arising on amalgamation or reconstruction of various companies carried out as per High Court Order's under section 394 of the Companies Act, 1956 Amount not ascertainable Amount not ascertainable

Total (a) 3,845,122 1,070,059

Commitments

Company's share in a corporate guarantee given to a Bank on behalf of a partnership firm in which company is a partner towards credit facility 12,607,204 64,092,072

Total (b) 12,607,204 64,092,072

Total (a) (b) 16,452,326 65,162,131

b. The Maharashtra Chambers of Housing Industry ('MCHI') had filed a writ petition in Bombay High Court challenging the levy of Value Added Tax ('VAT') w.e.f. June 20, 2006 under MVAT Act, 2002 on sale of premises under construction which has been recently dismissed by the Bombay High Court and has ordered to pay the MVAT liability. 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 Company is in process of sending the demand letters to the purchasers of the premises to pay MVAT liability and hence, no provision thereof is considered necessary.

c. The Maharashtra Chambers of Housing Industry (MCHI) had filed a writ petition with Bombay High Court challenging the levy of service tax on construction of complex and residential service introduced in the Budget of 2010 which has been recently dismissed by the Bombay High Court and has ordered to pay the service tax liability amount. Further, MCHI has filed a writ petition with Supreme Court challenging the Bombay High Court order which has been admitted by the Apex Court. Meanwhile, the Company has deposited the service tax liability amount to the government authorities/service tax department. No provision of interest liability is considered necessary as the same will be recovered from the customer.

2 Related Party Disclosures

1 Relationships:

Parties where control exists a Subsidiary Companies:

Amenity Software Private Limited

Magenta Computer Software Private Limited

Satguru Infocorp Services Private Limited

Starlight Systems Private Limited

Sunteck Property Holdings Private Limited

Skystar Buildcon Private Limited

Starlight Systems (I) Private Limited

b Step-down Subsidiary Companies

Signature Island Buildcon Private Limited

c Joint Ventures:

Piramal Sunteck Realty Private Limited

Piramal Sunteck Realty Mauritius Limited

Piramal Sunteck International Limited

V3 Designs LLP

Uniworth Realty LLP

Nariman Infrastructure Private Limited (upto 21st September, 2011)

Nariman Infrastructure LLP (from 22nd September, 2011)

Pathway Buildcon LLP

Assable Buildcon LLP

Kanaka and Associates

d Other Associates:

Topzone Mercantile Company LLP

e Key Management Personnel:

Mr. Kamal Khetan – Chairman & Managing Director Mr. Jignesh Sanghavi – Whole Time Director

f Entity/Person/s having Significant Influence:

Starteck Infraprojects Private Limited

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

3 Investments in Joint Ventures and the company's share in their assets and liabilities

The interest of the Company in Joint ventures is listed below :

Piramal Sunteck Realty Private Limited (PSRPL) -50%

Nariman Infrastructure Private Limited (NIPL) - 50% (upto 21st September, 2011)

Nariman Infrastructure LLP (NIL) -50% (from 22nd September, 2011)

Uniworth Realty LLP (URL)-50%

V3 Designs LLP (VDL) -50%

Assable Buildcon LLP (ABL) 50%

Pathway Buildcon LLP (PBL) 50%

Kanaka and Associates (Partnership Firm)50%

4 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 other 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.

5 a. In the opinion of the management, any of the assets other than fixed assets and non- current investments have a value on realisation in the ordinary course of business atleast equal to the amount at which these are stated.

b. The accounts of certain Trade Receivables, Trade Payables, Loans and Advances and banks are, however, subject to formal confirmations or reconciliations and consequent adjustments, if any. However there is no indication of dispute on these accounts, other than those mentioned in the Financial Statements. The management does not expect any material difference affecting the current year's financial statements on such reconciliation/adjustments.

6 Current year's financial statements have been presented in accordance with the Revised Schedule VI, previous year's figures have been regrouped / rearranged wherever necessary to conform to current year's classification.

7 The Ministry of Corporate Affairs, Government of India, vide General Circular No. 2 and 3 dated 8th February 2011 and 21st February 2011 respectively has granted a general exemption from compliance with section 212 of the Companies Act, 1956, subject to fulfillment of conditions stipulated in the circular. The Company has satisfied the conditions stipulated in the circular and hence is entitled to the exemption. Necessary information relating to the subsidiaries has been included in the Consolidated Financial Statements.


Mar 31, 2011

1. Contingent Liabilities, not provided for, exist in respect of:

i) The stamp duty and registration charges arising on amalgamation or reconstruction of various companies carried out as per High Court Order's under section 394 of the Companies Act, 1956. The amount of whereof is not ascertainable at present.

ii) Company's share in a Corporate Guarantee for Rs. 64,092,072 (Previous year Rs. Nil) given to a Bank towards credit facility on behalf of a partnership firm in which company is a partner.

iii)

Name of Nature of Dues Amount (Rs.) Paid Period to which Forum where Statute against amount relates disputes is pending demand

Income Tax Demand u/s 156 1,063,893 (including - F.Y2008-2009 (A.Y CIT(A) Act, 1961 interest upto date of 2009-10) demand

2. A) In the opinion of the management, value on realization of current assets, loans and advances in the ordinary course of business will be at least equal to the amount at which they have been stated in the financial statements.

B) The accounts of certain Debtors, Creditors and Advances are subject to confirmations, reconciliations and adjustments if any. The Management does not expect any material difference affecting the current year financial statements on such reconciliation/ adjustments.

3. In the absence of necessary information with the Company, relating to the registration status of suppliers under the Micro, Small and Medium Enterprises Development Act, 2006, the information required under the said Act could not be complied and disclosed.

4. A) Related Party Disclosures

a) Names of Related Parties and Nature of Relationships

I. Subsidiary Companies Amenity Software Private Limited

Magenta Computer Software Private Limited

Satguru Infocorp Services Private Limited

Starlight Systems Private Limited

Sunteck Property Holdings Private Limited

Skystar Buildcon Private Limited

Piramal Sunteck Realty Private Limited (up to15th March, 2011)

Step Down Subsidiaries

Piramal Sunteck Realty Mauritius Limited (upto15th March, 2011)

Piramal Sunteck International Limited (upto15th March, 2011)

II. Joint Ventures

Piramal Sunteck Realty Private Limited (from16th March, 2011) Kanaka and Associates

V3 Design Private Limited (from 31st December, 2010 till 27th March, 2011)

V3 Designs LLP (from 28th March, 2011)

Uniworth Realty Private Limited (from 31st December, 2010 to23rd March, 2011)

Uniworth Realty LLP (from 24th March, 2011)

Nariman Infrastructure Private Limited ((from 31st December, 2010)

III. Associates

Topzones Mercantile Co. Private Limited (Upto 29th March, 2011)

Topzones Mercantile Company LLP (from 30thMarch,2011)

IV. Key Management Personnel

Mr.Kamal Khetan– Chairman & Managing Director

Mr. Jignesh Sanghavi–Whole Time Director

V. Entity/Person/s having Significant Influence

Mrs. Manisha Khetan–RelativeofKey Managerial Person

Starteck Infra projects Private Limited.

B) Investments in Joint Ventures

The interest of the Company in Joint venturesislisted below :

a. Piramal Sunteck Realty Private Limited (PSRPL) -50%

b. Nariman Infrastructure Private Limited (NIPL) -50%

c. Uniworth Realty Private Limited (URPL)-50%

d. Uniworth Realty LLP (URL)-50%

e. V3Designs Private Limited (VDPL)-50%

f. V3Designs LLP (VDL) -50%

g. Kanaka and Associates (Partnership Firm) (Kanaka)-50%

5. 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 filed a writ petition challenging the constitutional validity of the amendment. By the Interim Order dated December 7, 2007, the Hon'ble Bombay High Court, has directed to MCHI members not to register as Dealer under the provisions of MVAT Act and no order of assessment be passed. This stay of the Hon'ble Bombay High Court is still pending clearance. Further, By virtue of the Premises Ownership Agreement entered into by the Company with the purchasers of the premises, the purchaser is liable to pay, and the Company is entitled to recover, any tax/duty etc that may be leviable on the said transaction and hence the Company does not have any liability in connection with the same.

6. The Maharastra Chambers of Housing Industry (MCHI) has filed a writ petition with Mumbai High Court challenging the constitutional validity of levying service tax on construction of complex service introduced in the Budget of 2010. The Mumbai High court has granted interim stay on recovery of the service tax vide its order dated July 23, 2010. The Mumbai High Court has granted Further interim relief to petitioners on February 18, 2011 and passed the order to deposit the amount collected from clients against service tax in the high court till the final judgment and the same will be refunded along with interest if the judgment will be in favor of petitioners. The final judgment of Honorable Mumbai High Court on the said matter is still pending.

By virtue of the Premises Ownership Agreement / Letter of Allotment entered into by the Company with the purchasers of the premises, the purchaser is liable to pay, and the Company is entitled to recover, any tax that may beleviable on the said transaction and hence Company does not have any liability in connection with the same. Company has already send demand letters to clients to pay the service tax amount as per interim order of honorable Mumbai High Court& will deposit the same in court.

7. Lease

a) All the initial direct payment are charged to Profit and Loss Account.

8. The Company operates in Single Segment i.e. Real Estate Real Estate Development and therefore Segment Reporting as per AS-17 is not applicable.

9. Other information pursuant to provision of Paragraph 3, 4A, 4C & 4D of Part II of Schedule VI of the Companies Act, 1956 are either Nil or Not Applicable.

10. Previous year's figures have been regrouped / reclassified where necessary to conform to the current year's classification.

11. During the year there is no un hedged Foreign Transactions entered by the Company.


Mar 31, 2010

1. Contingent Liabilities

In the opinion of the management, there is no contingent liability other than the stamp duty and registration charges which is payable as per High Court Order under section 394 of the Companies Act, 1956 in respect of amalgamation or reconstruction of companies, the amount of which is not quantifiable at present. Adequate provision has been made for all known liabilities, except interest and penalty as may arise.

2. In the opinion of the management, value on realization of fixed assets, current assets, loans and advances in the ordinary course of business will be at least equal to the amount at which they have been stated in the financial statements.

3. The balances of some of the loans and advances and creditors are subject to confirmation.

4. In the absence of necessary information with the Company, relating to the registration status of suppliers under the Micro, Small and Medium Enterprises Development Act, 2006, the information required under the said Act could not be complied and disclosed.

5. Related Party Disclosures

A) Names of Related Parties and Nature of Relationships

I. Subsidiary Companies

Amenity Software Private Limited Magenta Computer Software Private Limited Satguru Infocorp Services Private Limited Starlight Systems Private Limited Piramal Sunteck Realty Private Limited

II. Joint Venture

Kanaka & Associates (Partnership Firm)

III. Entity over which Company exercise significant influence

Eskay Infrastructure Development Private Limited Satguru Capital & Finance Private Limited Satguru Derivatives & Commodity Private Limited Buteo Finance & Investments Limited

IV. Key Management Personnel

Mr. KamalKhetan Mrs. Manisha Khetan

6. Previous years figures have been regrouped, rearranged, reclassified to the extent possible.

7. The Company operates in Single Segment i.e. Realty and Construction.

8. Other information pursuant to provision of Paragraph 3, 4A, 4C & 4D of Part II of Schedule VI of the Companies Act, 1956 are either Nil or Not Applicable.

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