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Notes to Accounts of Unity Infraprojects Ltd.

Mar 31, 2016

Terms / rights attached to equity shares

The Company has only one class of equity shares having a par value of Rs.2 Per share. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

During the year ended March 31, 2016 the amount of per share dividend recognized as distributions to equity shareholders was Nil (Previous Year : Nil).

In the event of liquidation of the company the holders of equity shares will be entitled to receive remaining assets of the company after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

Details of security and terms of repayment

(i) Vehicle and equipment loans

Secured against specific charge on vehicles and equipments. These are repayable in EMIs over a period of time spread from one year to three years.

(ii) Other Loans

The Company''s Corporate Debt Restructuring (CDR) package was approved by the CDR Empowered Group (EG) in its meeting held on 16th December 2014 and communicated to the Company vide its letter of approval dated 26th December 2014. The Company executed the Master Restructuring Agreement (MRA) with the CDR lenders by 31st December 2014. Substantial securities have been created in favor of the CDR lenders.

Key features of the CDR proposal are as follows :

- Repayment of Rupee Term Loans (RTL) after moratorium period of 27 months from cut off date being 1st January 2014 in 90 structured monthly installments commencing from 30th April 2016.

- Conversion of various irregular portion of Working Capital limits, LC devolvement’s and BG Invocations into Working Capital Term Loans (WCTL).

- Repayment of Rupee Term Loans (RTL) after moratorium period of 27 months from cut off date being 1st January 2014 in 90 structured monthly installments commencing from 30th April 2016.

- Interest on Term Loans and WCTL for 27 months from cut-off date and Interest on existing Fund based Working Capital for 18 months from cut-off date is to be funded and built up into Funded Interest Term Loan (FITL).

- Interest on FITL-I (pertaining the TL interest), FITL-II (pertaining the WCTL interest) and FITL-III (pertaining the FBWC interest) shall be converted to equity as per the prevailing regulatory guidelines, at the end off each calendar quarter.

- Waiver/Refund of penal interest, penal charges, liquidated damages from cut-off date till implementation of restructuring scheme.

- Right of Recompense to CDR Lenders for the relief and sacrifice extended, subject to provisions of CDR Guidelines and MRA.

- Contribution of Rs.7,271 Lakhs in the Company by promoters, i.e., 25.00% of lenders sacrifice and 2.43% of restructured debt, in the form of Promoters Contribution which can be converted to equity.

(a) Securities for Term Loans and NCD : Rupee Term Loan (RTL) and FITL thereon -

1) 1st pari-passu charge on the entire Fixed Assets (movable and immovable), both present and future of the Company, but excluding the exclusive security given to the lenders.

2) 2nd pari-passu charge on the entire Current Assets (movable and immovable), both present and future of the Company, but excluding the exclusive security given to the lenders.

Working Capital Term Loan (WCTL) -

3) 1st pari-passu charge on Fixed Assets created in favour of WC lenders to the extent their share in WC facilities.

4) 2nd pari-passu charge on Current Assets, excluding exclusive security given to the lenders, and pooling of entire Current Assets of the Company (excluding project specific assets charged to project specific lenders) among WC lenders.

(b) Funded Interest Term Loan (FITL) -

The interest amount on Rupee Term Loans & WCTL for the period of 27 months i.e. from cut off date 1st January 2014 till 31st March 2016 and interest on existing Fund based Working Capital for the period of 18 months i.e. from cut off date 1st January 2014 till June 30, 2015 will be converted to FITL.

(c) Interest on Term Loans -

The above mention term loans carry an interest rate which is 12.00 %

(e) Collateral security pari-passu with all CDR lenders

5) Pledge of entire unencumbered shares of promoters.

6) a. Personal guarantee of Mr. Kishore Avarsekar and Mr Abhijit Avarsekar.

b. Corporate guarantee of M/s Avarsekar & Sons Pvt. Ltd., M/s Avarsekar & Kejriwal Constructions Pvt. Ltd., M/s Unity Realty & Developers Ltd and M/s Suburban Agriculture Dairy and Fisheries Pvt. Ltd."

7) a. Agricultural land located at Mouza Chakgaria, Under Diff. Dag No. JL NO. 26, Touzi No.

56, Khatian No. 10, Ward No. 109, PO Panchashayar, PS Purba Hadavpur, Dist south 24 Parganas, Kolkata adm 226.94 acres in the name of group company, Suburban Agriculture Dairy and Fisheries Pvt. Ltd.

b. Agricultural land located at Mouza Nayabad, Under Diff Dag No. JL NO. 25, Ward No. 109, PO Panchashayar, PS Purba Hadavpur, Dist south 24 Parganas, Kolkata adm 121.90 acres in the name of group company, Suburban Agriculture Dairy and Fisheries Pvt. Ltd."

8) Land located at Village Kodigehalli, Yelahanka Hobli, Bangluru admeasuring 3.34 acres owned by Unity Realty & Developers Limited.

(f) Exclusive Collateral Security

9) SBI will extend 2nd charge on Residential flat Nos. 1403,1501,1502 & 1503 admeasuring 1480 sq. feet each at Plot No.1249, Shrushti Apartments, Old Prabhadevi Road, Mumbai-400025, belonging to Avarsekar & Kejriwal Construction Pvt. Ltd.

10) ICICI Bank will extend 1st charge by way of mortgage of property of Shri.A.Sudhakar Reddy situated at Sy.No. 439,428,175/2, 176/24, 176/3, 176/5, 176/6, 176/13, 176,50, 176/53, 176/ 118, Bagalur village, Jala Hobli, Bangalore North Taluk

(g) Security Conditions

11) Exciting Security conditions are proposed to continue.

12) ICICI Bank who is having exclusive security is neither pooling its exclusive nor extending 2nd charge on the same. ICICI Bank will get 2nd charge on the additional collateral security situated at Kolkata and Bangalore to the extent of its dues not covered by their exclusive security.

13) In the event of sale of any exclusive security of the company ( not shared with other lenders), the same shall be available to the respective Lenders for meeting their respective dues and the surplus amount arising out of such sale of exclusive security of the company, shall be available for meeting the dues of the other Lenders on a pari-passu basis. (ICICI Bank will be required to transfer the surplus proceeds from the sale of its exclusive security to the TRA.)

14) Central Bank of India will also extent 2nd charge on its exclusive security and will get 2nd charge on additional collateral securities situated at Kolkata and Bangalore. Central Bank of India will not seek NOC from 2nd charge holders on their exclusive security at the time of sale of these assets.

15) There will be Pooling of entire Current Assets of the Company (excluding project specific assets charge to project specific lenders) among WC lenders and creation of 1st pari-passu charge in favor of WC lenders to the extent their share in WC facilities on reciprocal basis.

16) SBI will extend 2nd charge on its exclusive collateral securities. Situated at Mumbai and will get 1st pari-passu charge on additional collateral securities situated at Kolkata and Bangalore

17) Projects specific cash flows are proposed to be pooled in the TRA.

18) Security for WCTL & FITL is proposed as 1st charge on Fixed Assets and 2nd charge on Current Assets excluding the exclusive security given to the lenders.

19) Permitting time upto 31st March, 2016 for conversion of proposed collateral security situated at Kolkata and Bangalore being agricultural land into non-agricultural land.

20) The final acceptance of additional collateral securities situated at Kolkata & Bangalore is subject to be their being mortgage able in all respects, the title being clear and properties being saleable and marketable.

21) TRA to be opened project wise and all proceeds to be routed through these accounts.

22) In case of shortfall in the valuation of additional collateral securities, the shortfall is required to be met by the company through additional collateral securities acceptable to lenders.

Counter Claims in arbitration matters referred by the company - Liability Unascertainable Workman compensation in arbitration matters referred by the company - Liability Unascertainable

23 The Company has executed the project on the basis of work orders received from the clients. The resultant additional claims amounting to Rs.31,569 Lakhs are recognized in the Financial Year 2013-14. Out of the said claims Rs.2,190 Lakhs are realized by the company during the current year. As at March 31, 2016 Rs.29,379 Lakhs are still outstanding and shown under ''Trade Receivables'' in Note No. 15.

24 Asset Realizable Value :_

In the opinion of the Board, all assets other than fixed assets and non current investments, have a realizable value in the ordinary course of business which is at least equal to the amount at which it is stated in financial statements.

25 Segment Information_

In line with Accounting Standard 17 on ''Segment Reporting'', taking into account the organizational structure, product type as well as the differing risks and returns criterion, the Company is engaged in only one reportable segment viz. "Construction and Engineering".

26 Related Party Disclosures Refer Annexure I

27 Leases

Assets given on operating lease

The Company has not given any plant and machinery on operating lease during the year.

Hiring charges is Nil (previous year : Nil)

The initial direct cost in respect of operating lease are recognized in the statement of profit and loss

Assets taken on operating lease

The Company''s significant leasing arrangements are in respect of residential flats, office premises, plant and machinery and equipments taken on lease. The arrangements range between 11 months and 4 years generally and are usually renewable by mutual consent or mutually agreeable terms. Under these arrangements, generally refundable interest free deposits have been given. In respect of above arrangements, lease rentals payable are recognized in the statement of profit and loss for the year and included under Hiring charges of Rs.279.89 Lakhs (previous year : Rs.2,225.51 Lakhs ) (refer note 19)

28 Income tax assessment status

The Income-Tax assessments of the Company have been completed up to Assessment Year 20082009. The disputed demand outstanding from assessment year 2003-2004 to assessment year 2013 2014 is Rs.18,196.04 Lakhs (net of taxes paid of Rs.2,615.24 Lakhs which is shown as ''Tax Payments (Net of Provisions)'' under ''Short-term loans and advances'' (refer Note 17)). Based on the decisions of the Appellate authorities and the interpretations of other relevant provisions, the Company has been legally advised that the demand is likely to be either deleted or substantially reduced and accordingly no provision has been made.

Note: (i) All the above joint ventures are jointly controlled entities as per AS - 27.

(ii) Figures in the brackets in above table refer to figures of previous year.

29 Employee Benefits Disclosure

The Company has classified the various benefits provided to employees as under :-

Defined Contribution Plans

Employers'' Contribution to Provident Fund

Employers'' Contribution to Employee''s State Insurance

* Due to the conservative approach of the company, company does not want to write - off the provisions in the books of accounts, so the liability of gratuity and leave encashment is not reduced in the current year.

30 Going Concern

Based on various developments including restructuring by lenders and proposed monetization plan, the management is of the view that the company will remain going concern for future on the basis of existing order book, future business proposal prequalification for project bidding and previous track record

31 Confirmations

The balances in the accounts of Trade Receivables, Trade Payables, Loans and Advances, Other Current Assets and Other Current Liabilities are subject to confirmation / reconciliation, if any, The Management does not expect any significant variance from the reported figures.

32 Prior year comparatives have been reclassified to confirm with the current year''s presentation, wherever applicable._


Mar 31, 2015

1. Disclosures under the Micro, Small and Medium Enterprises Development Act, 2006

The Company has not received any intimation from 'suppliers' regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosure requirements in this regard as per schedule VI of the Companies Act, 1956 could not be provided.

2. Income tax assessment status

The Income-Tax assessments of the Company have been completed up to Assessment Year 2008-2009. The disputed demand outstanding from assessment year 2003-2004 to assessment year 2012-2013 is Rs. 17,167.53 Lacs (net of taxes paid of Rs. 2,475.24 Lacs which is shown as 'Tax Payments (Net of Provisions)' under 'Short-term loans and advances' (refer Note 18)). Based on the decisions of the Appellate authorities and the interpretations of other relevant provisions, the Company has been legally advised that the demand is likely to be either deleted or substantially reduced and accordingly no provision has been made.

3. Confirmations

The balances in the accounts of Trade Receivables, Trade Payables, Loans and Advances, Other Current Assets and Other Current Liabilities are subject to confirmation / reconciliation, if any, The Management does not expect any significant variance from the reported figures.

4. Prior year comparatives have been reclassified to conform with the current year's presentation, wherever applicable.


Mar 31, 2014

1 The Company has executed the project on the basis of work orders received from the clients. However, due to price escalations and other factors, the cost of the project has increased leading to additional claims made by the Company on the clients. The clients having disputed the claims, the Company has opted for arbitration proceedings for resolution of the dispute. The resultant additional claims amounting to Rs.31569.00 lacs under arbitration, which in the opinion of the management are probable of resulting in revenue and capable of being reliably measured, are accounted as revenue.

2 Asset Realisable Value :

In the opinion of the Board, all assets other than fixed assets and non-current investments have a realisable value in the ordinary course of business which is at least equal to the amount at which it is stated in financial statements.

3 Interestunder Finance costs are net of Interest income amounting to Rs. 10,726.18 Lacs (Previous year : Rs.8,896.85 Lacs).

4 Segment Information

In line with Accounting Standard 17 on ''Segment Reporting'', taking into account the organizational structure, product type as well as the differing risks and returns criterion, the Company is engaged in only one reportable segment viz. "Construction and Engineering".

5 Leases

Assets given on operating lease

The Company has given various plant and machinery on operating lease during the year. Under these arrangements, generally refundable interest-free deposits have been taken. In respect of above arrangements, lease rentals receivable are recognised in the statement of profit and loss for the year and are included under Hiring charges of Rs. 170.19 Lacs (previous year :Rs. 55.22 Lacs) (refer note 20)

Assets taken on operating lease

The Company''s significant leasing arrangements are in respect of residential flats, office premises, plant and machinery and equipment s taken on lease. The arrangements range between 11 months and 4 years generally and are usually renewable by mutual consent or mutually agreeable terms. Under these arrangements, generally refundable interest free deposits have been given. In respect of above arrangements, lease rentals payable are recognised in the statement of profit and loss for the year and included under Hiring charges of Rs.5,161.65 Lacs (previous year : Rs. 4,250.77 Lacs ) (refer note 22)

6 Income tax assessment status

The Income-Tax assessments of the Company have been completed up to Assessment Year 2008-2009. The disputed demand outstanding from assessment year 2003-2004 to assessment year 2012-2013 is Rs. 17,167.21 Lacs (net of taxes paid of Rs. 2,014.75 Lacs which is shown as ''Balance with government authorities'' under ''Short-term loans and advances'' (refer Note 18). Based on the decisions of the Appellate authorities and the interpretations of other relevant provisions, the Company has been legally advised that the demand is likely to be either deleted or substantially reduced and accordingly no provision has been made.

Note:

(i) All the above joint ventures are jointly controlled entities as per AS - 27.

(ii) Figures in the brackets in above table refer to figures of previous year.

7 Employee Benefits Disclosure

The Company has classified the various benefits provided to employees as under :-

Defined Contribution Plans

Employers'' Contribution to Provident Fund

Employers'' Contribution to Employee''sState Insurance

8 Confirmations

The balances in the accounts of Trade Receivables, Trade Payables, Loans and Advances, Other Current Assets and Other Current Liabilities are subject to confirmation / reconciliation, if any, The Management does not expect any significant variance from the reported figures.

9 Prior year comparatives have been reclassified to confirm with the current year''s presentation, wherever applicable.

ANNEXURE -1 Related Party Disclosure

A) List of Related Parties and Relationship

a) Subsidiary Companies

1 Unity Realty & Developers Limited

2 Unity Infrastructure Assets Limited

3 UnityNatural Resources Private Limited

4 Bengal Unity Realtors Private Limited

5 Bengal URDL Housing Projects Limited

6 URDL Banglore Developers Private Limited

7 Suburban Dairy Agriculture & Fisheries Private Limited

8 Unity Tourist Hospitality Private Limited

9 Unity Telecom Infrastructure Limited

10 Unity Integrated Roads Private Limited

11 Unity Agriprojects Private Limited

12 Aura Greenport Private Limited

13 Chomu Mahla Toll Road Private Limited

14 Jind Haryana Border Toll Road Private Limited

15 Suratgarh-Srigangangar Toll Road Private Limited

16 Unity Building Assets Private Limited

17 Unity MiddleEast(FZE)

b) Associate Companies

1 Aura Punjab Mega Food Park Private Limited

2 Shy Unity Impex Private Limited

3 Goa Tech Park Private Limited

4 D.G.Malls Multiplex Private Limited

5 G.P. Concept Hotel and Mall Private Limited

6 S.B.Shopping Mall and Hotel Private Limited

7 P.P.Shoppers Mall and Hotel Private Limited

8 J.P.Shopping Mall and Hotel Private Limited

9 Unity Neelam Realcon Private Limited

10 S.B.Concept Hotel Mall Private Limited

11 Eko- UnityJointventure Company Private. Limited.

12 Remaking of Mumbai Unity Developers Private Limited.

c) Enterprises overwhich key management personnel and their relatives exercise significant influence or control

1 VED PMC Limited

2 Debashish Construction Private Limited

3 Avarsekar and Sons Private Limited

4 Aquarius Farms Private Limited

5 Astra Concrete Products Private Limited

6 Avarsekar and Kejriwal Construction Private Limited

7 Pathare Construction & Investment Private Limited

8 Kairavi Agencies Private Limited

9 Krishnangi Fabrics Private Limited

10 Unity ConceptIndia Private Limited

11 Avarsekar Developers

12 Panner CementCompany

13 Unity IT Infraprojects Limited (formerly known as AISHWARYA PROJECTS LIMITED)

14 URDL Venkatesh Developers Private Limited

15 L.P.Builder

16 Unity Construction Co.

17 Mahalasa Enterprises

18 Unity CSR Foundation

19 Unity Asian (W) Construction Co.

20 Unity Mining Enterprises

21 Goa Minerals

22 Avarsekar Estates Private Limited

23 Chakgaria Properties Private Limited

24 Modech Realcon Private Limited

25 Ashish Space Private Limited

26 Beufort Realty Private Limited

27 Katyayani Realcon Private Ltd

28 Mahalasa Properties Private Limited

29 Mahaan Spaces Private Ltd

30 Mauli Spaces Private Limited

31 Parivartan Spaces Private Limited

32 Pranitee Reaalty Private Limited

33 Pushpa Realcon Private Limited

34 Shanti Ghar Private Limited

35 Shubham Realcon Private Limited

d) Key Management

1 Kishore Avarsekar

2 Pushpa Avarsekar

3 Abhijit Avarsekar

4 Shweta Avarsekar

5 Ashish Avarsekar

6 Apurva Avarsekar

7 Anil Avarsekar

8 Suvarna Avarsekar


Mar 31, 2013

1. Asset Relisable Value :

In the opinion of the Board, all assets other than fixed assets and non-current investments have a realisable value in the ordinary course of business which is at least equal to the amount at which it is stated in financial statements.

2. Interest under Finance costs are net of Interest income amounting to Rs. 8,896.85 Lacs (Previous year: Rs. 9,749.50 Lacs).

3. Exchange Difference

Exchange Difference during the year on Import of Rs.14.77 Lacs (Previous Year: Rs. 12.83 Lacs is accounted for as income under "Other Income".

4. Segment Information

In line with Accounting Standard 17 on ''Segment Reporting'', taking into account the organizational structure, product type as well as the differing risks and returns criterion, the Company is engaged in only one reportable segment viz. "Construction and Engineering".

5. Related Party Disclosures Refer Annexure I

6. Leases

Assets given on operating lease

The Company has given various plant and machinery on operating lease during the year. Under these arrangements, generally refundable interest-free deposits have been taken. In respect of above arrangements, lease rentals receivable are recognised in the statement of profit and loss for the year and are included under Hiring charges of Rs. 55.22 Lacs (previous year: Rs. 189.10 Lacs) (refer Note No 21)

7. Derivative Instruments

category-wise quantitative data about derivative instruments and their purpose that are outstanding at the balance sheet date

8. Disclosures under the Micro, Small and Medium Enterprises Development Act, 2006

The Company has not received any intimation from ''suppliers'' regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosure requirements in this regard as per schedule VI of the Companies Act, 1956 could not be provided.

9. Income tax assessment status

The Income-Tax assessments of the Company have been completed up to Assessment Year 2008-09 The disputed demand outstanding from assessmentyear 2005-06 to assessment year 2009-10 is Rs. 307.37 Lacs (net of taxes paid of Rs. 2,269.74 Lacs which is shown as ''Balance with Government Authorities'' under ''Short-term loans and advances'' (refer Note no 19). Based on the decisions of the Appellate authorities and the interpretations of other relevant provisions, the Company has been legally advised that the demand is likely to be either deleted or substantially reduced and accordingly no provision has been made.

10. Employee Benefits Disclosure

The Company has classified the various benefits provided to employees as under Defined Contribution Plans

- Employers'' Contribution to Provident Fund

- Employers'' Contribution to Employee''s State Insurance

11. Confirmations

The balances in the accounts of Trade Receivables, Trade Payables, Loans and Advances, Other Current Assets and Other Current Liabilities are subject to confirmation / reconciliation, if any, The Management does not expect any significant variance from the reported figures.

12. Prior year comparatives have been reclassified to confirm with the current year''s presentation, wherever applicable.


Mar 31, 2012

Term of repayment: 36 Equal monthly installments.

a) Loans payable on demand, from parties other than bank are secured by First pari passu charge on all existing & future current assets of the borrower Second pari passu charge on all existing & future fixed assets of the borrower.

b) Working capital loans are secured by hypothecation of work-in-progress, stock, fixed deposits and book debts. And to the extent of Rs. 5,954.62 lacs are secured by mortgage of flats of Group Company.

c) Term loan from banks are secured by subservient charge on the current & moveable fixed assets of the company (fixed assets ot her than land and building and fixed assets exclusive charged to other than lenders) with a minimum asset coverage ratio 1.25:1.

1. Asset Releasable Value

In the opinion of the Board, all assets other than fixed assets and non-current investments have a realizable value in the ordinary course of business which is at least equal to the amount at which it is stated in financial statements.

2. Interest Under Finance Costs

Interest under finance costs is net of Interest Income Rs. 9,749.50 lacs (Previous year: Rs. 3,915.38 lacs).

3. Exchange Difference

Exchange Difference during the year on Import of Rs. 12.83 lacs (Previous Year: Rs.Nil) is accounted for as income under "other income".

4. Segment Information

In line with Accounting Standard 17 on 'Segment Reporting', taking into account the organizational structure, product type as well as the differing risks and returns criterion, the Company is engaged in only one reportable segmentviz. "Construction and Engineering".

5. Related Party Disclosures

Refer Annexure I

6. Leases

- Assets given on operating lease:

The Company has given various plant and machinery on operating lease during the year. Under these arrangements, generally refundable interest-free deposits have been taken. In respect of above arrangements, lease rentals receivable are recognized in the statement of profit and loss for the year and are included under Hiring charges of Rs. 189.10 lacs (previous year : Rs. 400.2 5 lacs) (refer Note No 21).

7 income TaH Assessment Status

The Income-Tax assessments of the Company have been completed up to Assessment Year 2009 -10. The disputed demand outstanding from assessment year 2002-03 to assessment year 2009-10 is Rs. 314.94 lacs (net of taxes paid of Rs. 2,012.53 lacs, which is shown as 'Balance with government authorities' under 'Short-term loans and advances' (refer Note no 19). Based on the decisions of the Appellate authorities and the interpretations of other relevant provisions, the Company has been legally advised that the demand is likely to be either deleted or substantially reduced and accordingly no provision has been made.

8. Disclosures under the Micro. Small and Medium Enterprises Development Act.2006

The Company has not received any intimation from 'suppliers' regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosure requirements in this regard as per schedule VI ofthe Companies Act, 1956 could not be provided.

9. Confirmations

The balances in the accounts of Trade Receivables, Trade Payables, Loans and Advances, Other Current Assets and Other Current Liabilities are subject to confirmation / reconciliation, if any, The Management does not expect any significant variance from the reported figures.

10. Presentation and Disclosure of Financial Statements

During the year ended March 31, 2012, the revised Schedule VI notified under the Companies Act, 1956, has become applicable to the Company, for preparation and presentation of its financial statements. The adoption of revised Schedule VI does not impact recognition and measurement principles followed for preparation of financial statements. However, it has significant impact on presentation and disclosures made in the financial statements.


Mar 31, 2011

1. Contingent Liabilities not provided for (As certified by the Management)

(Rs. in Lacs)

As at As at Particulars March 31, 2011 March 31, 2010

Guarantees given by banks on behalf of the Company 55,704.01 73,095.87

Corporate Guarantees given by the Company 1,000.00 2,000.00 Claims against the Company not acknowledged as debts in respect of

a. Income Tax matters 1,512.86 Nil

b. Sales Tax matters Nil Nil

c. Excise Duty matters Nil Nil

d. Others Nil Nil Letter of Credit 1,348.69 3,992.43

Total 59,565.56 79,088.30

2. Capital Commitments

Estimated amount of contracts (net of advances) remaining to be executed on capital account and not provided for is Rs. Nil (Previous Year: Rs. Nil).

3. Bank balance under Current Liabilities represent credit balances in bank accounts as at the Balance Sheet date to book entries standing in bank reconciliation.

4. Interests under Finance Charges are net of Interest income amounting to Rs. 3,915.38 Lacs (Previous Year Rs. 2,557.84 Lacs). Tax Deducted at Source on Interest Income is Rs. 391.54 Lacs (Previous Year Rs. 521.58 Lacs).

5. Disclosures under the Micro, Small and Medium Enterprises Development Act, 2006

The Company has not received any intimation from ‘suppliers' regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosure requirements in this regard as per schedule VI of the Companies Act, 1956 could not be provided.

6.Segment Information

In line with Accounting Standard 17 on ‘Segment Reporting', taking into account organizational structure, product type as well as the differing risks and returns criterion, the Company is engaged in only one reportable segment viz., "Construction and Engineering".

7. Related Party Disclosures

Refer Annexure attached.

8. Operating Leases

Disclosure under Accounting Standard 19 (Leases) issued by the Institute of Chartered Accountants of India, the Company has taken various residential/ office premises (including Furniture and Fittings if any) under Leave and License agreements for periods which generally range between 11 months to 3 years. These arrangements are renewable by mutual consent on refundable security deposits. These payments are recognized in Profit and loss Account under Rent, Rates and Taxes.

9. Income Tax Assessment Status

The Income-Tax assessments of the Company have been completed up to Assessment Year 2008-09. The disputed demand outstanding from Assessment Year 2003-04 to Assessment Year 2008-09 is Rs.1,512.86 Lacs. Based on the decisions of the Appellate authorities and the interpretations of other relevant provisions, the Company has been legally advised that the demand is likely to be either deleted or substantially reduced and accordingly no provision has been made.

10. In the opinion of the Board of Directors, the Current Assets, Loans & Advances have a value on realisation in the ordinary course of business at least to the extent of amount stated in the Balance Sheet. No Confirmations have been obtained from Sundry Debtors, Sundry creditors and for Loans & Advances and Tender deposits outstanding. The amounts shown in the Balance Sheet are, therefore, as per books of accounts.

11. The interest has not been provided on Unsecured Loans received from Directors, since these are considered as interest free.

12. Impairment of Assets:

On a further assessment of the Impairment of Fixed Assets of the Company as at Balance Sheet date as required by Accounting Standard 28 (AS – 28): "Impairment of Assets "issued by the Institute of Chartered Accountants of India, company is of the view that no provision for impairment of Fixed Assets is required.

13. The provision for income tax and deferred tax has been worked out on the basis of assumption that outstanding statutory liability will be paid on or before the due date of filling of income tax return.

14. Prior year comparatives have been reclassified to confirm with the current year's presentation, wherever applicable.


Mar 31, 2010

1. Contingent Liabilities not provided for (As certified by the Management)

(Rs. in Lacs)

Particulars As at As at March 31, 2010 March 31, 2009

Guarantees given by banks on behalf of the Company 73,095.87 52,073.63

Corporate Guarantees given by the Company 2,000.00 7,333.00

Claims against the Company not acknowledged as debts in respect of:

a. Income Tax matters Nil Nil

b. Sales Tax matters Nil Nil

c. Excise Duty matters Nil Nil

d. Others Nil Nil Letter of Credit 3,992.43 2,085.83

Total 79,088.30 61,492.46

Note: Provisions for post retirement benefits which are based on actuarial valuations done on an overall company basis are excluded above.

2. Bank balances under Current Liabilities represents credit balances in bank accounts as at the Balance Sheet date to book entries standing in bank reconciliation.

3. Interests under Finance Charges are net of Interest income amounting to Rs. 2,557.84 lacs (Previous Year Rs. 1,822.68 lacs). Tax Deducted at Source on Interest Income is Rs. 521.58 lacs (Previous Year Rs. 413.02 lacs).

4. Disclosures under the Micro, Small and Medium Enterprises Development Act, 2006

The Company has not received any intimation from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosure requirements in this regard as per schedule VI of the Companies Act, 1956 could not be provided.

5. Segment Information

In line with Accounting Standard 17 on Segment Reporting, taking into account the organizational structure, product type as well as the differing risks and returns criterion, the Company is engaged in only one reportable segment viz., "Construction and Engineering".

6. Related Party Disclosures :

Refer Annexure attached.

7. Operating Leases

Disclosure under Accounting Standard 19 (Leases) issued by the Institute of Chartered Accountants of India, the Company has taken various residential/ office premises (including Furniture and Fittings if any) under Leave and License agreements for periods which generally range between 11 months to 3 years. These arrangements are renewable by mutual consent on refundable security deposits. These payments are recognized in Profit and loss Account under Rent, Rates and Taxes

8. Income Tax Assessment Status:

The Income Tax Assessments of the Company are completed up to the assessment year 2005-2006 and various appeals filed by the Company in this regards are pending before Statutory Appellate Authorities. There are no amounts in respect of disputed appeals. Management is of view that there will not be substantial amount of demand. Hence, the company has not provided for any contingent liability in the books of accounts.

9. In the opinion of the Board of Directors, the Current Assets, Loans & Advances have a value on realisation in the ordinary course of business at least to the extent of amount stated in the Balance Sheet. No Confirmations have been obtained from Sundry Debtors, Sundry creditors and for Loans & Advances and Tender deposits outstanding. The amounts shown in the Balance Sheet are, therefore, as per books of accounts.

10. The interest has not been provided on Unsecured Loans received from Directors and others, since these are considered as interest free.

Note: All of the above Joint Ventures are Jointly Controlled Entities as per AS 27.

11. Impairment of Assets:

On a further assessment of the Impairment of Fixed Assets of the Company as at Balance Sheet date as required by Accounting Standard 28 (AS - 28): "impairment of Assets "issued by the Institute of Chartered Accountants of India, company is of the view that no provision for impairment of Fixed Assets is required.

Note: Figures in the bracket in above table indicates those of previous year.

12. The provision for income tax and deferred tax has been worked out on the basis of assumption that outstanding statutory liability will be paid on or before the due date of filling of income tax return.

13. Prior year comparatives have been reclassified to confirm with the current years presentation, wherever applicable.

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