Mar 31, 2017
NOTE 1
In the opinion of the management, Current Assets, Loans and Advances are of the valued stated, if realized in the ordinary course of business.
NOTE 2
SEGMENT REPORTING
The Company is predominantly in the business of providing "Project Management Consultancy Services" and, as such there are no separate reportable segments. The company''s operations are only in India.
NOTE 3
RELATED PARTY DISCLOSURES
A. List of Related parties:
(As certified by the Management)
I. Subsidiary
Artefact Infrastructure Limited (up to January 02nd, 2017)
II. Joint Ventures
Zaidun Leeng Sdn. Bhd. - Artefact Projects
Sheladia Associates Inc. - Artefact Projects - Zaidun Leeng Sdn. Bhd.
Meinhardt Singapore Pte. Ltd. - Artefact Projects (Dissolution pending as on 31.03.2017)
III. Key Management Personnel (KMP) and their Relatives
Mr. Pankaj B Shah
Mr. Siddharth P Shah
Miss. Ankita M Shah
Mr. Manoj B Shah
Mr. Chetan B Shah
Mrs. Madhavi Manoj Shah
Mr. Anshul Manoj Shah
Mr. Sanjay M Khare - Chief Financial Officer
Miss. Shilpa A Bhargava - Company Secretary
IV. Enterprises in which key managerial personnel and their relatives are able to exercise significant influence with whom transactions have taken place during the year:
(Other related parties)
a) Artefact Towers Association
b) Artefact Infrastructure Limited (w.e.f. January 2nd, 2017)
c) Alpine Mining Infra LLP
(ii) The Company''s share in the total value of the assets and liabilities as at 31* March, 2017 is K 51,951,718 (Previous year K 55,408,060) and K 44,272,051 (Previous Year K 51,134,370) respectively and in the income, expenditure and net profit/ ( Loss) before tax for the year ended 31"t March, 2017 of the above Joint Ventures amounts to K 14,022,228 (Previous Year K 22,329), K 13,839,193 (Previous Year K 1,030,907) and K 183,035 (Previous Year (K 1,008,578) respectively. The figures have been incorporated based on the audited financial statements received from the jointly controlled operations.
NOTE 4
In accordance with Regulation 34(3) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 the details of advance given are as under:
a. To Artefact Infrastructure Limited (AIL), closing balance as on 31st March, 2017 is K 90,891,699 (Previous year K 136,653,070). Maximum balance outstanding during the year was K 169,404,651 (Previous year K 137,193,645).
b. As per the Companyâs policy loans to employees are not considered in âaâ above.
NOTE 5
Previous Year''s figures have been reworked /regrouped / rearranged / reclassified wherever necessary to make them comparable with those of current year.
NOTE 6
The Company has not entered into any derivative contracts and accordingly there are no outstanding derivative contracts as on 31st March, 2017. The Company does not have any foreign currency exposure as on 31st March, 2017.
Mar 31, 2015
1. Rights to Equity Shareholders
The Company has only one class of equity share having face value of ' 10
per share. Each shareholder is eligible for one vote per share held . In
the event of liquidation of the company , the equity shareholders will
be entitled to receive any of 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 shareholder.
2. Term Loans from a Bank referred to above included in current
maturity of long term debts in Note No.10 of Rs.60, 521,956 are Secured
against Mortgage of Building and Hypothecation of other Fixed Assets,
Equipments, Hardwares and Softwares. The Term loan -I, as mentioned in
note 4.04, is repayable in 5 equal monthly installments of Rs.
2,368,174 (including interest) from 31st March, 2015 as per repayment
schedule, ending on September 6, 2015 and carries interest @ 15.75%
p.a. and Term Loan - II, as mentioned in note 4.04, carries interest @
13.50% p.a is repayable on 30th April, 2015 as per terms of sanction.
3. The term loans from a bank are guaranteed by some of the Directors
in their personal capacity and are also Guaranteed by a Company i.e.
Vidharbha Holding Limited.
4. Vehicle Loans referred to above and Rs. 539,315 included in
current maturity of long term debts in Note No.10 are secured against
hypothecation of the specific vehicle financed. The vehicle loan of Rs.
235,079 is repayable in 7 equal monthly installments (including
interest) from 31st March, 2015 of Rs.34,570 and vehicle loan of Rs.
1,349,278 is repayable in 46 equal monthly installments (including
interest) from 31st March, 2015 of Rs. 35,430 as per repayment
schedule.
5. Working Capital Loans from Banks to the extent of:
(i) Rs. 89,011,543 referred to above are secured by way of
hypothecation of whole of the movable properties including Book debts
and other assets both present and future, and are further secured
collaterally by mortgage of immovable properties of the Company. This
loans are guaranteed by some of the directors in their personal
capacity and also by a Corporate Guarantee of a Company i.e. Vidharbha
Holding Ltd.
(ii) Rs. 528,384 referred to above are secured by the Pledge of Fixed
Deposit with Bank of Rs. 600,000.
6. The Company has not received information from Creditors regarding
their status under the Micro, Small and Medium Enterprises Development
Act, 2006 and hence disclosure as required under the said Act, relating
to amounts unpaid as on 31st March, 2015 together with Interest paid /
payable have not been given.
7. Presently the company is liable to pay MAT under section 115JB of
the Income Tax Act,1961 (The Act) and the amount paid as MAT is allowed
to be carried forward for being set off against the future tax
liabilities computed in accordance with the provisions of the Act,
other than section 115JB, in next ten years. Based on future projection
of the performances, the company will be liable to pay the income tax
computed as per provisions, other than under section 115 JB of the Act.
Accordingly as advised in Guidance Note on "Accounting for credit
available in respect of Minimum Alternate Tax under the Income Tax Act,
1961" issued by the Institute of Chartered Accountants of India Rs.
1,789,654 (Previous Year Rs. 1,953,074) being the excess of tax payable
u/s 115 JB of the Act over tax payable as per the provision other than
section 115 JB of the Act has been considered as MAT credit entitlement
and credited to the Statement of Profit and Loss. The aggregate MAT
Credit Entitlement available to the Company as at 31st March, 2015 is
Rs. 7,754,561 (Previous Year Rs. 5,964,908).
8. The amount outstanding for a period exceeding six months mainly
includes amount receivable from government departments predominantly
from NHAI, MMRDA, AAI etc and are in relation to execution of contract
services, deployment of additional personnel, price escalations etc.
The services have been provided on express written orders and
procedural delays in respect of reconciliation of accounts &
disbursement of funds at government departments are normal. Further, it
includes Rs. 38,311,894 (Previous Year Rs.60,108,004) in respect of
consultancy contracts for which the final bills are yet to be submitted
and amount are receivable as per the running bills. Accordingly,
Management is of the view that all these amount are good for recovery
and no provision for doubtful debts is required.
9. In respect of Airport Authority of India (AAI), one of the
clients of the company, the company's payment of invoice has been
denied to an extent of Rs. 85.11 lacs citing unilateral deviation from
contracted fees based on certain minutes of their internal meeting held
prior to contract execution. The company had sought legal clarification
and filed an appeal for arbitration. The arbitration proceedings have
been concluded on 5th Feb, 2015, however the Arbitrator have to
finalise the award and final award is awaited. The management is
positive about recovery of debts along with interest & costs and do not
expect any impact on the financial position of the Company.
10. Defined Benefit Plan
The employees Gratuity Fund Scheme of the Company is a defined benefit
plan. The present value of obligation is determined based on actuarial
valuation using the Projected Unit Credit Method, which recognises each
period of service as giving rise to additional unit of employee benefit
entitlement and measures each unit separately to build up the final
obligation.
11. CONTINGENT LIBILITIES
(To the extent not provided for)
Particulars Year Ended Year Ended
March 31st, March 31st,
2015 2014
(Amount in Rs.) (Amount in Rs.)
(i) Guarantees given by the Company's 41,707,443 59,128,066
Bankers.
(Bank guarantees are provided under
contractual/legal obligation. No cash
outflow is expected.)
(ii) Corporate Guarantee Given 105,000,000 105,000,000
(Given to a Bank against credit
facility taken by wholly owned
Subsidiary Company)
(iii) Disputed Income tax demand NIL 44,672,201
(The company appeal was decided in
favor of the company and as on year
end no disputed income tax demand is
outstanding)
(iv) Third Party Claims 442,556 1,208,584
(Matters are pending before various
forums. The Company doesn't expect
any material impact on the financial
position of the Company
on account of pending litigation)
12. In the opinion of the management, Current Assets, Loans and Advances
are of the value stated, if realised in the ordinary course of
business.
13. SEGMENT REPORTING:
As per Accounting Standard (AS) 17 on "Segment Reporting" segment
information has been provided under the notes to consolidated financial
statements.
14. RELATED PARTY DISCLOSURES:
A. List of related parties :
(As certified by the Management)
I. Subsidiary Company
Artefact Infrastructure Ltd.
II. Step down Subsidiary
Alpine Mininginfra LLP
III. Associates
Rising Minerals & Metals LLP Glowide Infradevelopment LLP Artefact
Inframining LLP
Valecha Badwani Sendhwa Tollways Limited (Upto 2nd February, 2015)
IV. Joint Ventures
Zaidun Leeng Sdn. Bhd.- Artefact Projects
Sheladia Associates Inc. - Artefact Projects - Zaidun Leeng Sdn. Bhd.
Meinhardt Singapore Pte. Ltd. - Artefact Projects
V. Key Management Personnel and Their Relatives
Mr. Manoj B. Shah
Mr. Pankaj B. Shah
Mr. Siddharth P. Shah
Mr. Nilesh Jain - Chief Financial Officer
VI. Enterprises in which key managerial personnel and their relatives
are able to exercise significant influence with whom transactions have
taken place during the year :
(Other related parties)
Artefact Towers Association
15. In accordance with clause 32 of Listing Agreement the details of
advance is as under:
a. To Artefact Infrastructure Limited (AIL), a Subsidiary, closing
balance as on March 31st, 2015 is ' 37,012,792 (Previous year Rs. NIL).
Maximum balance outstanding during the year was Rs. 40,765,925
(Previous year Rs. 22,303,984).
b. AIL has not made investment in the shares of the Company
c. As per the Company's policy loans to employees are not considered
in 'a' above.
16. Previous Year's figures have been reworked /regrouped / rearranged /
reclassified wherever necessary to make them comparable with those of
current year.
Mar 31, 2014
1. SHARE CAPITAL
Rights to Equity Shareholders
The Company has only one class of equity share having face value of Rs.
10 per share. Each shareholder is eligible for one vote per share held.
In the event of liquidation of the company , the equity shareholders
will be entitled to receive any of remaining assets of the company
after distributiion of all preferential amounts . The distribution will
be in proportion to the number of equity shares held by the
shareholder.
2. LONG TERM BORROWINGS
2.1 Term Loans from a Bank referred to above and Rs.56,450,300 included
in current maturity of long term debts in Note No.10 are Secured
against Mortgage of Building and Hypothecation of other Fixed Assets,
Equipments, Hardwares and Softwares. The Term loan -I, as mentioned in
note 4.04, is repayable in 17 equal monthly installments (including
interest) from 31st March, 2014 of Rs. 2,368,174 as per repayment
schedule, ending on September 6, 2015 and carries interest @ 15.75%
p.a. and Term Loan - II, as mentioned in note 4.04, carries interest @
13.50% p.a is repayable in 5 equal monthly intallments of Rs 10,000,000
after the period of 9 months from 31st March,2014.
2.2 The above term loans from a bank are guaranteed by some of the
Directors in their personal capacity and are also Guarantee by a
Company i.e. Vidharbha Holding Limited.
2.3 Vehicle Loans referred to above and Rs. 651,143 included in current
maturity of long term debts in Note No.10 are secured against
hypothecation of the specific vehicle financed. The vehicle loan of Rs.
235,077/- is repayable in 18 equal monthly instalments (including
interest) from 31st March , 2014 of Rs. 34,570 and vehicle loan of Rs.
1,348,830/- is repayable in 58 equal monthly instalments (including
interest) from 31st March , 2014 of Rs. 35,430 as per repayment
schedule.
3. SHORT TERM BORROWINGS
(i) Rs. 88,932,510/- referred to above are secured by way of
hypothecation of whole of the movable properties Including Book Debts
and Assets both present and future, and are further secured
collaterally by mortgage of immovable properties of the Company,
guaranteed by some of the directors in their personal capacity and also
covered by a Corporate Guarantee of a Company i.e. Vidharbha Holding
Ltd.
(ii) Rs. 542,131 /- referred to above are secured by the Pledge of
Fixed Deposit with Bank of Rs. 600,000 /-.
4. TRADE PAYABLES
@ The Company has not received information from Creditors regarding
their status under the Micro, Small and Medium Enterprises Development
Act, 2006 and hence disclosure as required under the said Act, relating
to amounts unpaid as on 31st March, 2014 together with Interest paid /
payable have not been given.
5. OTHER CURRENT LIABILITIES
Does not include any amount due and outstanding to be credited to
Investor Education & Protection Fund. ** Mainly includes Payable to
Employees and Provision for Expenses etc.
6. NON CURRENT INVESTMENTS
6.01 Presently the company is liable to pay MAT under section 115JB of
the Income Tax Act,1961 (The Act) and the amount paid as MAT is allowed
to be carried forward for being set off against the future tax
liabilities computed in accordance with the provisions of the Act,
other than section 115JB,in next ten years. Based on future projection
of the performances, the company will be liable to pay the income tax
computed as per provisions, other than under section 115 JB of the Act.
Accordingly as advised in Guidance Note on "Accounting for credit
available in respect of Minimum Alternate Tax under the Income Tax
Act,1961" issued by the Institute of Chartered Accountants of India Rs.
1,953,074/- being the excess of tax payable u/s 115 JB of the Act over
tax payable as per the provision other than section 115 JB of the Act
has been considered as MAT credit entitlement and credited to the
Statement of Profit and Loss. The aggregate MAT Credit Entitlement
available to the Company as on 31st March, 2014 is Rs. 5,964,908
(Previous Year Rs. 4,011,834).
7. TRADE RECEIVABLES
7.01 The amount outstanding for a period exceeding six months mainly
includes amount receivable from government departments predominantly
from NHAI, MMRDA, AAI etc and are in relation to execution of contract
services, deployment of additional personnel, price escalations etc.
The services have been provided on express written orders and
procedural delays in respect of reconciliation of accounts &
disbursement of funds at government deparments are normal. Accordingly,
management is of the view that all these amount are good for recovery
and no provision for doubtful debts is required.
7.2 The amount outstanding classified as for a period of more than 6
months includes Rs. 60,108,004/- (Previous Year Rs.48,364,667) in
respect of consultancy contracts for which the final bills are yet to
be submitted and are outstanding on running accounts as per the
contract of consultancy.
7.3 In respect of Airport Authority of India (AAI), one of the client
of the company, the company''s invoice has not been accepted to an
extent of Rs. 85.11 lacs citing certain minutes of their internal
meeting held prior to contract execution as reason for rejection.
According to the Management of the company, all the invoices raised by
them is as per the contract entered with AAI for Architectural Design
for Trivandrum International Airport. AAI has some interpretation
clarifications in the terms of contract which the company feels are
totally unsustainable. Accordingly company has sought legal
clarification and filed an appeal for arbitration. The management is of
the view that the action of AAI is ultra-virus and devoid of any
contractual logic as well as the executed contract and agreement ab
initio. Accordingly the whole amount receivable from AAI is considered
good for recovery.
8. Defined Benefit Plan
The employees Gratuity Fund Scheme of the Company is a defined benefit
plan. The present value of obligation is determined based on actuarial
valuation using the Projected Unit Credit Method, which recognises each
period of service as giving rise to addtional unit of employee benefit
entitlement and measures each unit separately to build up the final
obligation.
9. CONTINGENT LIBILITIES
(To the extent not provided for)
Particulars Year Ended Mar Year Ended March
31, 2014 31, 2013
(Amount in Rs.) (Amount in Rs.)
(i) Guarantees given by the 59,128,066 67,407,442
Company''s Bankers.
(Bank guarantees are provided
under contractual/legal obligation. No cash outflow
is expected.)
(ii) Corporate Guarantee Given 105,000,000 105,000,000
(Given to Bank against credit
facility taken by a Subsidiary
company)
(iii) Disputed Income tax demand 44,672,201 44,672,201
(The company has filed an appeal
and does not expect any cash
outflow)
(Amount deposited-Rs.2,000,877/-
(Previous year-NIL))
(iv) Third Party Claims 1,208,584 1,695,100
(Matters are pending before
various forums.No cash outflow
is expected)
NOTE 10
In the opinion of the management, Current Assets, Loans and Advances
are of the value stated, if realised in the ordinary course of
business.
NOTE 11
SEGMENT REPORTING:
As per Accounting Standard (AS ) 17 on "Segment Reporting" segment
information has been provided under the notes to consolidated financial
statements
NOTE 12
RELATED PARTY DISCLOSURES:
A . List of related parties :
(As certified by the Company)
I. Subsidiary Company
Artefact Infrastructure Ltd.
II. Step down Subsidiary
Alpine Inframining LLP
III. Associates
Rising Minerals & Metals LLP
Glowide Infradevelopment LLP
Artefact Inframining LLP
Valecha Badwani Sendhwa Tollways Limited
IV. Joint Ventures
Zaidun Leeng Sdn. Bhd.- Artefact Projects
Sheladia Associates Inc. - Artefact Projects - Zaidun Leeng Sdn. Bhd.
Meinhardt Singapore Pte. Ltd. - Artefact Projects
V. Key Management Personnel and Their Relatives
Mr. Manoj B. Shah - Managing Director
Mr. Pankaj B. Shah - Whole Time Director
Mr. Siddhardh P Shah - Whole Time Director ( w.e.f. 06.07.2013)
Mr. Nilesh Jain - Chief Financial Officer (w.e.f 13.08.2013)
Mr. Chetan B. Shah - Relative of Key Management Personnel
Mrs. Madhvi M Shah - Relative of Key Management Personnel
VI. Enterprises in which key managerial personnel and their relatives
are able to exercise significant influence with whom transactions have
taken place during the year :
(Other related parties)
Artefact Towers
Association Koradi Minerals Private Limited
JOINT VENTURE ACCOUNTING:
The Company''s share in the total value of the assets and liabilities as
at Rs 31.03.2014 is Rs. 98,371,772 (Previous year Rs.92,659,946) and
Rs. 80,936,746 (Previous Year Rs.77,287,463) respectively and in the
income, expenditure and net profit/( Loss) before tax for the year
ended 31.03.2014 of the above Joint Ventures amounts to Rs. 53,749
(Previous Year Rs.5,681,625), Rs. 5,408,406 (Previous Year
Rs.53,69,333) and Rs. (5,354,658) (Previous year Rs.312,293)
respectively. The figures have been incorporated based on the audited
financial statements received from the jointly controlled operations.
NOTE 13
In accordance with clause 32 of Listing Agreement the details of
advance is as under:
a. To Artefact Infrastructure Limited (AIL), a Subsidiary , closing
balance as on March 31, 2014 is Rs.Nil (Previous year Rs. 17,366,120/).
Maximum balance outstanding during the year was Rs. Rs. 22,303,984
(Previous year Rs. 17,366,120/- ).
b. AIL has not made investment in the shares of the Company
c. As per the Company''s policy loans to employees are not considered in
''a'' above.
NOTE 14
Previous Year''s figures have been reworked /regrouped / rearranged /
reclassified wherever necessary to make them comparable with those of
current year.
Mar 31, 2013
NOTE 1
The opinion of the management, Current Assets, Loans and Advances are
of [he value staled, if realised in the ordinary course of business.
NOTE 2
SEGMENT REPORTING:
As per Accounting Standard (AS ) 17 on "Segment Reporting" lejjnenl
information has been provided under the notes to consolidated fin
uncial slaiemenls
NOTE 3
RELATED PARTY DISCLOSURES:
A . List of related parties :
(As certified by the Company)
I. Subsidiary Company Artefact infrastructure Ltd,
I], Step down Subsidiary
Alpine Inframining LLP (w.e.f 10.11 2012 )
1IL Associates
Rising Minerals & Metals LLP ( w.e.f 01.01.20] 3 ) Valecha Badwani
Sendhwa Tollways Limited
Joint Ventures
Zaidun Leeng Sdn. Bhd.- Artefact Projects
Sheladia Associates inc. - Artefact Projects -Zaidun Leeng Sdn. Bhd.
Meinhardt Singapore Pte. Ltd. - Artefact Projects
Artefact Project - Zaidun Leeng (India) Pvt. Ltd ( up to 25.11.2012)
V. Key Management Personnel and Their Relatives Mr.Manoj B. Shah Mr.
Pankaj B. Shah
Mr. Balkrishna Shah - Relative of Key Management Personnel Mr.Chetan B.
Shah- Relative of Key Management Persomel Mrs. Sushila B Shah -Relative
of Key Management Personnel Mrs, Rupa C Shah - Relative of Key
Management Persomel Mrs. Madhvi M Shah - Relative of Key Management
Personnel Mrs, Rcena P Shah - Relative of Key Management Persoitiel
VI. Enterprises in which key managerial personnel and their relatives
are able to exercise significant influence with whom transactions have
taken place during the year : (Other related parties) Artefact Towers
Association Koradi Minerals Private Limited ( w.e.f 10.11.2012)
NOTE 4
Previous Year''s figures have been reworked /regrouped / rearranged /
reclassified wherever necessary to make them comparable with those of
current year.
Mar 31, 2012
NOTE 1 CONTINGENT LIBILITIES AND COMMITMENTS (To the extent not
provided for)
Particulars As at March 31, As at March 31,
2012 2011
(Amount in Rs.) (Amount in Rs.)
(a) Contingent Liabilities :
(i) Guarantees given by the
Company's Bankers. 39,993,998 41,543,998
(Bank guarantees are provided under contractual/legal obligation. No
cash outflow is expected.) (ii) Corporate Guarantee Given 105,000,000
105,000,000
(Given to Bank against credit facility taken by the Subsidiary) (iii)
Third Party Claims 1,669,675 1,725,636
(Matters are pending before various forums.No cash outflow is expected)
NOTE 2
SEGMENT REPORTING:
Based on consideration of dominant source and nature of risks and
returns, the Company is considered to be engaged only in the business
of "Project Consultancy" with all activities revolving around this
business and accordingly has only one reportable segment. The
geographical location of its main operations and the internal
organization / reporting and management structure supports such
treatment.
NOTE 3
RELATED PARTY DISCLOSURES:
A . List of related parties :
(As certified by the Company)
I. Subsidiary Company
Artefact Infrastructure Ltd.
II. Joint Ventures
Zaidun Leeng Sdn. Bhd.- Artefact Projects
Sheladia Associates Inc. - Artefact Projects - Zaidun Leeng Sdn. Bhd.
Meinhardt Singapore Pte. Ltd. - Artefact Projects
Artefact Projects Zaidun Leeng (India) Pvt. Ltd.
III. Key Management Personnel and Their Relatives
Mr. Manoj B. Shah Mr. Pankaj B. Shah Mr. Chetan B. Shah - Relative of
Key Management Personnel
IV Enterprises in which key managerial personnel and their relatives
are able to exercise significant influence with whom transactions have
taken place during the year : (Other related parties)
Valecha Badwani Sendhwa Tollways Ltd Artefact Towers Association
NOTE 4
JOINT VENTURE ACCOUNTING:
(a) Jointly Controlled Operations
(i) The Company has entered in to Joint Ventures (JVs) in respect of
certain projects with various bodies corporates. The share in the
residual profit remaining after sharing of receipts in proportion to
the extent of services rendered is in the ratio as under -
The Company's share in the total value of the assets and liabilities as
at Rs 31.03.2012 is Rs. 89,007,885 (Previous year Rs.100,389,635) and
Rs.80,368,255 (Previous Year Rs.92,761,503) respectively and in the
income, expenditure and net profit before tax for the year ended
31.03.2012 of the above Joint Ventures amounts to Rs.15.055.309
(Previous Year Rs.21,057,848), Rs.14,626,783 (Previous Year
Rs.20,664,180) and Rs.428,525 (Previous year Rs.393,668) respectively.
The figures have been incorporated based on the audited financial
statements received from the jointly controlled operations.
The Company's share in the total value of the assets and liabilities
as at Rs 31.03.2012 is Rs. 1,489 (Previous Year Rs. 1,089) and
Rs. 15,320 (Previous year Rs. 400) respectively and in the income,
expenditure and net profit before tax for the year ended 31.03.2011
of the above Joint Venture amounts to Rs. Nil (Previous year Rs.Nil),
Rs.Nil (Previous year Rs.Nil) and Rs.Nil (Previous year Rs.Nil)
respectively. The figures have been incorporated based on the
audited financial statements received from the jointly controlled
entity.
NOTE 5
On March 10, 2011 the income tax authorities carried out search and
seizure at the company's premises and concluded on 15th Aprill, 2011.
Given the information provided so far and the investigation carried out
at the time of operation, the company believes that there will be no
material tax liability for the period. The process of completion of
assessment by the tax authorities is in process and the amount of tax
liability if any, shall be determined upon completion of such
assessment.
NOTE 6
This Revised Schedule VI has become effective from April 1, 2011 for
the preparation of Financial Statements. This has significantly impacted
the disclsoure and presentation made in Financial Statements. Previous
Year's figures have been reworked /regrouped / rearranged /
reclassified wherever necessary to correspond within Current Year's
classification/ disclosure.
(i) The above Cash Flow Statement has been prepared under the "Indirect
Method" as set out in Accounting Standard - 3 "Cash Flow Statements"
issued by the Institute of Chartered Accountants of India. (ii)
Figures in brackets indicate Outflows. (iii) Previous year's figures
have been regrouped / rearranged wherever necessary to make them
comparable with those of current year.
Mar 31, 2010
31.03.2010 31.03.2009
(Amount In Rs.) (Amount In Rs.)
1 Contingent Liabilities :
Guarantees given by the Companys
Bankers. 55834498 99594366
(Bank guarantees are provided under
contractual/legal obligation. No
cash outflow is expected.)
Defined Benefit Plan
The employees Gratuity Fund Scheme of the Company is a defined benefit
plan. The present value of obligation is determined based on actuarial
valuation using the Projected Unit Credit Method, which recognises each
period of service as giving rise to addtional unit of employee benefit
entitlement and measures each unit separately to build up the final
obligation.
2 Segment Reporting:
Based on consideration of dominant source and nature of risks and
returns, the Company is considered to be engaged only in the business
of "Project Consultancy" with all activities revolving around this
business and accordingly has only one reportable segment. The
geographical location of its main operations and the internal
organization / reporting and management structure supports such
treatment.
3 Related Party Disclosures
A. List of related parties :
(As certified by the Company)
I. Associate Companies / Joint Ventures
a) Zaidun Leeng Sdn. Bhd.- Artefacts Projects
b) Sheladia Associates Inc. - Artefacts Projects- Zaidun Leeng Sdn.
Bhd. LÃ Joint Ventures
c) Meinhardt Singapore Pte. Ltd. - Artefact Projects
d ) Artefact Projects Zaidun Leeng (India) Pvt. Ltd. Associate Company
II. Key Management Personnel
[a] Mr. Manoj B. Shah
[b] Mr. Pankaj B. Shah
[c] Mr. Mohan S.Adige
III Enterprises in which key managerial personnel and their relatives
are able to exercise significant influence with whom transactions have
taken place during the year: (Other related parties)
a) Artefacts Projects Sdn. Bhd.
b) Artefacts Infrastructure Limited
Note : Figures in brackets represent previous years amounts.
b. The computation of Net Profit for the purpose of Directors
Remuneration u/s 349 of the Companies Act,1956 has not been enumerated
since no commission has been paid to the Directors. Fixed managerial
remuneration has been paid to the whole-time Directors of the Company
as per Schedule XIII of the Companies Act, 1956. 13 In accordance with
the Accounting Standard (AS-28) on "Impairment of Assets", the
Management during the year carried out an exercise of identifying the
assets that may have been impaired in respect of each cash generating
unit in accordance with the said Accounting Standard. On the basis of
this review carried out by the management, there was no impairment loss
on Fixed Assets during the year ended 31s March, 2010.
5 Joint Venture Accounting :
5.1 Jointly Controlled Operations
b As at the end of the year, the Companys share in the total value of
the assets and liabilities is Rs. 22910016 and income, expenditure and
net profit before tax of all these Joint Ventures amounts to Rs.
25947677, Rs. 25308022 and Rs. 639656 respectively. The figures have been
incorporated based on the audited accounts received from the respective
Joint Venturers.
As at the end of the year, the Companys share in the total value of
the assets and liabilities is Rs. 200000/-, and income, expenditure and
net profit before tax of the above Joint Venture amounts to Rs. Nil ,
Rs. Nil and Rs. Nil respectively. The figures have been incorporated
based on the audited accounts received from the respective Company.
6 The Members at the EGM of the company held on 23rd February 2010
consented for offer, issue and allotment in one tranches through a
Preferential allotment and/or Private placement basis up to 9 Lacs
equity shares of Rs.10 Each at Rs. 101/-per equity share and up to 2 lacs
warrants convertible at the option of the holders in to equity share
ofRs. 10 Each atRs. 101/-per warrants to investors and up to 8.22 Lacs
warrants convertible at the option of the holders in to equity share
ofRs. 10 Each atRs. 101/- per warrants to the promoters. The company has
received share application money aggregating to Rs. 909 Lacs and warrant
application Money aggregating to Rs . 258.15 Lacs as on 31" March 2010.
7 Previous Years figures have been reworked /regrouped / rearranged /
reclassified wherever necessary to make them compairable with those of
the current year.