Mar 31, 2018
1 Corporate Information
SSPDL Limited ("the Company") was incorporated on October 17, 1994. The Company is a leading real estate developer engaged primarily in the business of real estate, property development, construction and other related activities. The company is domiciled in India and listed on BSE Limited (BSE)
Notes to financial statements for the year ended March 31, 2018 (All amounts are in Indian Rupees unless otherwise specified)
First-time adoption of Ind AS
A. Transition to Ind AS
These are the company''s first financial statements prepared in accordance with Ind AS.
The accounting policies set out in Note 2, have been applied in preparing the financial statements for the year ended March 31, 2018, in preparing the comparative information presented in these financial statements for the year ended March 31, 2017 (the Company''s date of transition),and in preparing the comparative information presented in these financial statements as at April 01,2016. an explanation of how the transition from previous GAAP to Ind AS has affected the companyâs financial position, financial performance and cash flows is set out in the following tables and notes
B Reconciliations between previous GAAP and Ind AS
Ind AS 101 requires an entity to reconcile equity, total comprehensive income and cash flows for prior periods. The following tables represent the reconciliations from previous GAAP to Ind AS.
Impact of Ind AS adoption on the statements of cash flows for the year ended March 31, 2016
* The adjustments above are on account of reclassification of the previous GAAP numbers to conform to Ind AS presentation requirements.
The following are the optional and mandatory exemption availed by the company while preparation of financials in accordance with Indian accounting standards
i) Ind AS optional exemptions
a) Deemed cost for property, plant and equipment, investment property and intangible assets
Ind AS 101 permits a first-time adopter to elect to continue with the carrying value for all of its property, plant and equipment as recognized in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition. This exemption can also be used for intangible assets covered by Ind AS 38 Intangible Assets and investment property covered by Ind AS 40 Investment Properties. Accordingly, the Company has elected to measure all of its property, plant and equipment, intangible assets and investment property at their previous GAAP carrying value.
b) Investment
Ind AS 101 permits a first-time adopter to continue previous GAAP carrying value for investment in equity instrument of subsidiaries, associates and joint ventures. Accordingly, the Company has elected to apply the said exemption.
ii) Ind AS Mandatory exemptions
An entity shall apply the following exceptions:
a) derecognition of financial assets and financial liabilities
b) hedge accounting
c) non-controlling interests
d) classification and measurement of financial assets
e) impairment of financial assets
f) embedded derivatives
g) government loans
(i) Fair value hierarchy
Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices.
Level 2: The fair value of financial instruments that are not traded in an active market (for example, traded bonds, over-the-counter derivatives) is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.
Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.
There are no transfers between levels 1 and 2 during the year. The company''s policy is to recognise transfers in and transfers out of fair value hierarchy levels as at the end of the reporting period.
The carrying amounts of trade receivables, loans, trade payables and cash and bank balances are considered to be the same as their fair values, due to their short-term nature.
The fair values of non-current borrowings are based on discounted cash flows using current borrowing rate. They are classified as level 3 fair values in the fair value heirarchy due to the use of unobservable inputs, including own credit risk.
Financial Risk management
The Company''s activities expose it to market risk, liquidity risk and credit risk. In order to minimise any adverse effects on the financial performance of the Company, derivative financial instruments, such as foreign exchange forward contracts are entered to hedge certain foreign currency risk exposures. Derivatives are used exclusively for hedging purposes and not as trading or speculative instruments
This note explains the sources of risk which the entity is exposed to and how the entity manages the risk and the impact of hedge accounting in the financial statements.
The Company''s risk management is carried out by the treasury department under policies approved by the Board of Directors. The board provides written principles for overall risk management as well as policies covering specific areas such as interest rate risk, credit risk and investment of excess liquidity.
(A) Credit Risk:
Credit risk is the risk that the counterparty will not meet its obligation under a financial instrument or customer contract, leading to financial loss. The credit risk arises principally from operating activities (primarily trade receivables) and from financing activities, including deposits with banks and other financial instruments.
(i) Credit risk management
Credit risk is managed at the company level. The company has low or no credit risk associated to its customers and hence the credit risk is considered at low credit risk category.
(ii) Provision for expected credit losses
The company provides for expected credit loss based on the following:
During the period, the company made no write offs of trade receivables, it does not expect to receive future cash flows or recoveries from collection of cash flows previously written off.
(B) Liquidity Risk:
Liquidity risk is the risk that the company will encounter difficulty in meeting its obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company''s approach to managing liquidity is to ensure as far as possible that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stresses conditions without incurring unacceptable losses or risking damage to the Company''s reputation.
The Company has lines of credit from group company and also from banks. The company believes that these facilities are sufficient to meet its funds requirements. Accordingly, no liquidity risk is perceived.
(ii) Maturities of financial liabilities
The tables below analyse the company''s financial liabilities into relevant maturity groupings based on their contractual maturities for:
The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as the impact of discounting is not significant.
Capital Management Risk management
The Company''s objective when managing capital are to:
1. Safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders, and
2. Maintain an optimal capital structure to reduce the cost of capital
In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debts.
(b) Terms / rights attached to equity shares
The Company has only one class of equity shares referred to as equity shares having a par value of Rs.10 per share. Each holder of equity shares is entitled to one vote per share.
Nature and purpose of the Reserves
i) Securities Premium
Securities Premium is used to record the premium on the issue of Shares. The reserve is used for the purposes as specified in the Companies Act, 2013
ii) General Reserve
The Company is required to create a general reserve out of the profits when the Company declares dividend to shareholders
Term loan from PNB Housing Finance Limited
i) Terms and Conditions
The term loan of Rs.6.76 crores has been obtained for general business purpose. The loan amount is repayable in 120 Months starting from 10-07-2017. The rate of interest applicable on the loan is 10.25% (Fixed) per annum for the first 36 Months and floating interest rate based on prevailing PNBHFR for the remaining repayment period.
ii) Details of security
The loan is secured by mortgage of commercial property belonging to one of the directors.
Vehicle Loan from Toyota Finance Limited
Vehicle loans are secured by hypothecation of respective vehicles
* The Company is seeking confirmation from its suppliers whether they fall under the category of micro and small enterprises as mentioned under the Micro, Small and Medium Enterprises Development Act, 2006 ("MSMED Act, 2006"). Based on confirmations received till date, the Company believes that it does not have any outstanding dues towards Micro and Small Enterprises. Further the Company has not paid/accrued any interest under the MSMED Act, 2006.
2. Details of dues to micro and small enterprises as defined under MSMED Act 2006
The Company is seeking confirmation from its suppliers whether they fall under the category of micro and small enterprises as mentioned under the Micro, Small and Medium Enterprises Development Act, 2006 ("MSMED Act, 2006"). Based on confirmations received till date, the Company believes that it does not have any outstanding dues towards Micro and Small Enterprises. Further the Company has not paid/accrued any interest under the MSMED Act, 2006.
3. Segment Reporting
Since the Company has only one segment, i.e. Property Development and operations of the Company has been carried out in India, separate information on Segment Reporting as per the Indian Accounting Standard 108 issued by the ICAI is not required
4. Previous year''s figures have been regrouped/reclassified wherever considered necessary to conform to this year''s classification.
Mar 31, 2016
(b) Terms / rights attached to equity shares
The Company has only one class of equity shares referred to as equity shares having a par value of ''10 per share. Each holder of equity shares is entitled to one vote per share.
1) CONTINGENT LIABILITIES:
i) Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) Rs. Nil (Previous Year Rs. Nil).
ii) Company has given a corporate guarantee in favour of Federal Bank Limited towards the working capital loans taken by SSPDL Infra Projects Private Limited, SSPDL Real Estates India Private Limited and SSPDL Reality India Private Limited (the wholly owned subsidiaries) for Rs. 40.00Lakhs, Rs. 120.00 Lakhs and Rs. 140.00 Lakhs respectively.
iii) Company has given a corporate guarantee in favour of Federal Bank Limited towards the term loans taken by SSPDL Infra Projects Private Limited, SSPDL Real Estates India Private Limited, SSPDL Reality India Private Limited and SSPDL Resorts Private Limited (the wholly owned subsidiaries) for Rs. 0.25 Lakhs, Rs. 1.85 Lakhs , Rs. 1.30 Lakhs and Rs. 1.60 Lakhs respectively.
2) SEGMENT INFORMATION:
Since the Company has only one segment, i.e. Property Development and operations of the Company has been carried out in India, separate information on Segment Reporting as per the Accounting Standard 17 issued by the ICAI is not required.
3) Related Party Disclosures:
As required under Accounting Standard 18 "Related Party Disclosures" (AS-18), following are details of transactions during the year with the related parties of the Company as defined in AS-18:
4) COMPARATIVES
Previous year figures have been regrouped / reclassified wherever considered necessary to conform to this year''s classification.
Mar 31, 2015
Cash credit from SBI is secured by; As primary security
a. The first charge on all the current assets of the Company including
hypothecation on construction materials, work in progress, receivables.
b. First charge (equitable mortgage) of Company's share of 70% of the
proposed built-up space together with undivided share of land to an
extent of 75,865 Sq.ft at Navallur Village, Old Mahabalipuram Road,
Kanchipuram District, Chennai.
As collateral security
a. Equitable mortgage of residential property at Hakimpet village,
Jubilee Hills, Hyderabad.
b. Equitable mortgage of vacant land at Kollur village, Medak,
Telangana.. Personal guarantee of directors
Sri Prakash Challa Sri Suresh Challa
*The Company is seeking confirmation from its suppliers whether they
fall under the category of micro and small enterprises as mentioned
under the Micro, Small and Medium Enterprises Development Act, 2006
("MSMED Act, 2006"). Based on confirmations received till date, the
Company believes that it does not have any outstanding dues towards
Micro and Small Enterprises. Further the Company has not paid/accrued
any interest under the MSMED Act, 2006.
**Advance received from client includes Rs, 13.76 crores from directors
and Rs, 8.71 crores form others for sale of land.
* In accordance with the Accounting Standard 22 - "Accounting for Taxes
on Income "(AS-22), the Deferred tax assets arising from timing
differences are recognized and carried forwarded only if there is
virtual certainty that they will be realized in future and reviewed for
the appropriateness of their respective carrying value at each balance
sheet date. In view of this, deferred tax asset (net) to the extent of
Rs, 2,05,14,134/- (Previous Year: Rs, 59,52,73,760/-) is not
recognized.
Since the above details meet the requirements of clause 32 of the
listing agreement, no separate disclosure is made.
1) Contingent liabilities:
i) Estimated amount of contracts remaining to be executedon capital
account and not provided for (net of advances) Rs, Nil
(Previous Year Rs, Nil).
ii) Company has given a corporate guarantee in favour of Federal Bank
Limited towards the working capital loans taken by
SSPDL Infra Projects Private Limited, SSPDL Real Estates India Private
Limited and SSPDL Realty India Private Limited (the wholly owned
subsidiaries) for Rs, 40.00 Lakhs, Rs, 120.00Lakhs and Rs, 140.00Lakhs
respectively.
iii) Company has given a corporate guarantee in favour of Federal Bank
Limited towards the term loans taken bySSPDL Infra Projects Private
Limited, SSPDL Real Estates India Private Limited, SSPDL Realty India
Private Limited and SSPDL Resorts Private Limited (the wholly owned
subsidiaries) for Rs, 0.25 Lakhs, Rs, 1.85 Lakhs, Rs, 1.30 Lakhs and
Rs, 1.60 Lakhs respectively.
2) SEGMENT INFORMATION:
Since the Company has only one segment, i.e. Property Development and
operations of the Company has been carried out in India, separate
information on Segment Reporting as per the Accounting Standard 17
issued by the ICAI is not required.
3) RELATED PARTY DISCLOSURES:
As required under Accounting Standard 18 "Related Party Disclosures"
(AS-18), following are details of transactions during the year with the
related parties of the Company as defined in AS-18:
The management has identified the following as related parties
Relationship Name of Related Party
Subsidiaries SSPDL Resorts Private Limited
SSPDL Realty India Private Limited SSPDL Real Estates India Private
Limited SSPDL Infra Projects India Private Limited SSPDL Infratech
Private Limited Associates Northwood Properties India Private Limited
Enterprises owned/significantly influenced Alpha City Chennai IT Park
Projects Private Limited by Key Management Personnel Sri Satya Sai Constructions (Partnership Firm)
Sri Satya Sai Constructions (Sole Proprietary Concern)
Sri Krishna Devaraya Hatcheries Private Limited
SSPDL Ventures Private Limited
Edala Estates Private Limited
SSPDL Infrastructure Developers Private Limited
SPPDL Green Acres LLP
Key Managerial Personnel Mr. Challa Prakash, Managing Director
Mr. Suresh Challa, Director (up to 30.03.2015) Mrs. Sridevi Challa,
Director(from 30.03.2015) Mr. E. BhaskarRao, Director
4) Comparatives
Previous year figures have been regrouped/reclassified wherever
considered necessary to conform to this year's classification.1
Mar 31, 2014
1. SHARE CAPITAL
(a) Terms/rights attached to equity shares
The Company has only one class of equity shares referred to as equity
shares having a par value of Rs. 10 per share. Each holder of equity
shares is entitled to one vote per share.
(b) Shares in the Company held by each shareholder holding more than 5%
shares.
2. SHORT-TERM BORROWINGS
Secured
* Cash credit from SBI is secured by
As primary security
a. The first charge on all the current assets of the Company including
hypothecation on construction materials, work in progress, receivables.
b. First charge (equitable mortgage) of Company''s share of 70% of the
proposed built-up space together with undivided share of land to an
extent of 75,865 Sq.ft at Navallur Village, Old Mahabalipuram Road,
Kanchipuram District, Chennai.
As collateral security
a. Equitable mortgage of residential property at Hakimpet village,
Jubilee Hills, Hyderabad.
b. Equitable mortgage of vacant land at Kollur village, Medak,
Telangana.
Personal guarantee of directors
Sri Prakash Challa
Sri Suresh Challa
3. Trade Payables
* The Company is seeking confirmation from its suppliers whether they
fall under the category of micro and small enterprises as mentioned
under the Micro, Small and Medium Enterprises Development Act, 2006
("MSMED Act, 2006"). Based on confirmations received till date, the
Company believes that it does not have any outstanding dues towards
Micro and Small Enterprises. Further the Company has not paid/accrued
any interest under the MSMED Act, 2006.
4.Other Current Liabilities
* Current maturities of long-term debts represents vehicle loan taken
from Axis bank and are secured by the respective vehicles.
** Advance received from client includes Rs. 24.00 crores received from
BHEL Employees Model Mutually Aided Co-Operative House Building Society
for construction of houses and Rs. 13.76 crores from directors and Rs.
5.00 crores form others for sale of land.
5. Non-current Investments
a. In Government Securities-Unquoted
* During the current year, out of the 3,51,223 shares in SSPDL
Infrastructure Developers Private Limited ("SIDPL"), 3,14,800 shares
disposed off, therefore SIDPL ceased to be an associate of SSPDL with
effect from January 10, 2014.
6. DEFERRED TAX ASSETS (NET)
* In accordance with the Accounting Standard 22 - "Accounting for Taxes
on Income"(AS-22), the Deferred tax assets arising from timing
differences are recognized and carried forwarded only if there is
virtual certainty that they will be realized in future and reviewed for
the appropriateness of their respective carrying value at each balance
sheet date. In view of this, deferred tax asset (net) to the extent of
Rs. 5,92,03,622 (Previous Year: Rs. 2,93,12,187) is not recognized.
7. Contingent liabilities:
i) Estimated amount of contracts remaining to be executed on capital
account and not provided for (net of advances) Rs. Nil (Previous Year
Rs. Nil).
ii) Company has given a corporate guarantee in favour of Federal Bank
Limited towards the working capital loans taken by M/s. SSPDL Infra
Projects Private Limited, M/s SSPDL Real Estates India Private Limited
and M/s. SSPDL Reality India Private Limited (the wholly owned
subsidiaries) for Rs. 40.00 Lakhs, Rs. 120.00 Lakhs and Rs. 140.00
Lakhs respectively.
iii) During the financial year 2009-10 the Company has received a
notice from the Office of the Commercial Tax Officer, Chennai directing
to pay Rs. 32,96,101 along with interest on disallowance of input tax
claimed by the Company during 2006- 07 under Section 19(11) of Tamil
Nadu VAT Act due to delay in submission of returns. The Company has
filed a SLP before the Hon''ble Supreme Court of India against the
decision of Hon''ble High Court of Madras.
iv) During the financial year 2011-12 the Company has received a
Service Tax demand for Rs. 2,30,730. The Company has filed appeal
before the Appellate Tribunal.
v) Service Tax demand notice received to the extent of Rs. 3,76,38,547
for the period 2006-07 to 2010 and Rs. 19,02,192 for the period October
2010 to September 2011. The Company has filed an appeal against the
demand notice before the Commissioner of Service Tax, Chennai. The
Commissioner of Service Tax confirmed the demand notice; subsequently
appeal is filed before the Central Excise and Service Tax Appellate
Tribunal against the said Commissioner''s Order.
8. SEGMENT INFORMATION
Since the Company has only one segment, i.e. Property Development and
operations of the Company has been carried out in India, separate
information on Segment Reporting as per the Accounting Standard 17
issued by the ICAI is not required.
9. RELATED PARTY DISCLOSURES
As required under Accounting Standard 18 "Related Party Disclosures"
(AS-18), following are details of transactions during the year with the
related parties of the Company as defined in AS-18.
10. Comparatives
Previous year figures have been regrouped/reclassified wherever
considered necessary to conform to this year''s classification.
Mar 31, 2013
1) Contingent liabilities:
i) Estimated amount of contracts remaining to be executed on capital
account and not provided for (net of advances) Rs. Nil (Previous Year Rs.
Nil).
ii) Company has given a corporate guarantee on behalf of M/s SSPDL
Infrastructure Developers Private Limited for an amount of Rs. Nil during
the year 2012-13 (Previous Year Rs. 85,739,276/-) in favour of Accent
Hotels Private Limited and for an amount of Rs. Nil during the year
2012-13 (Previous Year Rs. 52,758,962/-) in favour of Inter Globe Hotels
Private Limited.
iii) During the Financial Year 2009-10 the company has received a
notice from the Office of the Commercial Tax Officer, Chennai directing
to pay Rs. 32,96,101/- along with interest on disallowance of input tax
claimed by the company during 2006-07 under Section 19(11) of Tamil
Nadu VAT Act due to delay in submission of returns. The Company has
filed a writ, demand notice will be decided after outcome of the
judgment on Writ Petition.
iv) During the Financial year 2011-12 the Company has received a
Service Tax demand for Rs. 230,730/-. The company has filed an appeal
before the Service Tax Tribunal .No provision has been made in the
accounts for this demand has the Company expects a favorable decision
in appeal.
v) Service Tax demand to the extent of Rs. 3,76,38,547/- for the period
2006-07 to 2010. The company has filed an appeal against the notice
before the Commissioner of Service tax, Chennai. No provision has been
made in the accounts for this demand as the Company expects a favorable
decision in appeal.
2) SEGMENT INFORMATION:
Since the company has only one segment, i.e. Property Development and
operations of the company has been carried out in India, separate
information on Segment Reporting as per the Accounting Standard 17
issued by the ICAI is not required.
3) RELATED PARTY DISCLOSURES
As required under Accounting Standard 18 "Related party Disclosures"
(AS-18), following are details of transactions during the year with the
related parties of the Company as defined in AS-18:
4) Comparatives
Previous year figures have been regrouped/reclassified wherever
considered necessary to conform to this year''s classification.
Mar 31, 2012
1.1. Contingent liabilities:
i) Estimated amount of contracts remaining to be executed on capital
account and not provided for (net of advances) Rs. Nil (Previous Year Rs.
Nil).
ii) Company has given a corporate guarantee on behalf of M/s SSPDL
Infrastructure Developers Private Limited for an amount of Rs.
85,739,276/- (Previous Year Rs. 85,739,276/-) in favour of Accent Hotels
Private Limited and for an amount of Rs. 52,758,962/- (Previous Year Rs.
52,758,962/-) in favour of Inter Globe Hotels Private Limited.
iii) Guarantees given by bank to various parties on behalf of the
company outstanding as on 31st March, 2012 Rs. 33,507,785/- (Previous
Year Rs. 50,067,376).
iv) During the Financial Year 2009-10 the company has received a notice
from the Office of the Commercial Tax Officer, Chennai directing to pay
Rs. 32,96,101/- along with interest on disallowance of input tax claimed
by the company during 2006-07 under Section 19 (11) of Tamil Nadu VAT
Act due to delay in submission of returns. The Company has filed a
writ, demand notice will be decided after outcome of the judgment on
Writ Petition.
v) During the Financial year 2011-12 the Company has received a Service
Tax demand for Rs. 230,730/-. The company has decided to appeal before
the Service Tax Tribunal. No provision has been made in the accounts
for this demand as the Company expects a favorable decision in appeal.
vi) Service Tax demand to the extent of Rs. 3,76,38,547/- for the period
2006-07 to 2010. The company has filed a writ petition against the
notice before The Commissioner of Service tax, Chennai. No provision
has been made in the accounts for this demand as the Company expects a
favorable decision in appeal.
2) SEGMENT INFORMATION:
Since the company has only one segment, i.e. Property Development and
operations of the company has been carried out in India, separate
information on Segment Reporting as per the Accounting Standard 17
issued by the ICAI is not required.
3) RELATED PARTY DISCLOSURES
As required under Accounting Standard 18 "Related party Disclosures"
(AS-18), following are details of transactions during the year with the
related parties of the Company as defined in AS 18:
List of the Related parties and Relationships:
3.1 Subsidiaries:
1 . M/s. SSPDL Resorts Pvt Ltd
2. M/s. SSPDL Reality India Pvt Ltd
3. M/s. SSPDL Real Estates India Pvt Ltd
4. M/s. SSPDL Infra Projects India Pvt Ltd
5. M/s. SSPDL Interserve Pvt Ltd
3.2 Associates:
1. M/s. Northwood Infratech Pvt Ltd
2. M/s. Northwood Constructions India Pvt Ltd
3. M/s. Northwood Properties India Pvt Ltd
4. M/s. Northwood Realty India Pvt Ltd
5. M/s. Northwood Residential Ventures India Pvt Ltd
6. M/s. Northwood Township Projects Pvt Ltd
7. M/s. SSPDL Northwood Homes Pvt Ltd
8. M/s. SSPDL Northwood Residence Pvt Ltd
9. M/s. SSPDL Northwood Villas Pvt Ltd
10. M/s. SSPDL Infrastructure Developers Pvt Ltd
3.3 Enterprises owned/significantly influenced by Key Managerial
Personnel:
1. M/s. Alpha City Chennai IT Park Projects Pvt Ltd
2. M/s. Sri Satya Sai Constructions (Partnership Firm)
3. M/s. Sri Satya Sai Constructions (Sole Proprietory Concern)
4. M/s. Sri Krishna Devaraya Hatcheries Private Limited
5. M/s. SSPDL Ventures Pvt Ltd
6. M/s. SSPDL Retreat Pvt. Ltd
3.4 Key Managerial Personnel:
1. Mr. Challa Prakash Managing Director
2. Mr. Challa Suresh Director
3. Mr. E. Bhaskar Rao Director
4) Other information required to be disclosed as per part II of
Schedule VI to the Companies Act, is either 'NIL' or 'NOT APPLICABLE'
in the case of this company.
5) Previous year figures have been regrouped/reclassified wherever
considered necessary to conform to this year's classification.
Mar 31, 2011
1. Contingent liabilities:
i) Estimated amount of contracts remaining to be executed on capital
account and not provided for (net of advances) Rs. Nil (Previous Year
Rs. Nil).
ii) The Company has given a corporate guarantee on behalf of M/s SSPDL
Infrastructure Developers Private Limited for an amount of Rs
85,739,276/- (Previous Year Rs. 85,739,276/-) in favour of Accent
Hotels Private Limited and for an amount of Rs 52,758,962/- (Previous
Year Rs. 52,758,962/-) in favour of Inter Globe Hotels Private Limited.
iii) Claims against the Company not acknowledged as debts include
demands raised by Income Tax authorities Rs. 117,844,020/- (Previous
year Rs. 21,191,937/-). Upto the balancesheet date the company has
deposited against these claims amounting to Rs. 66,346,651/- (Previous
year Rs. 21,977,469/-). No provision has been made in the accounts for
these demands as the Company expects a favorable decision in appeal.
iv) Guarantees given by bank to various parties on behalf of the
company outstanding as on 31st March, 2011 Rs. 50,067,376/- (Previous
Year Rs. 71,987,376/-).
v) During the Financial year 2009-10 the company has received a notice
from the Office of the Commercial Tax Officer, Chennai directing to pay
Rs. 32,96,101/- along with interest on disallowance of input tax
claimed by the company during 2006-07 under Section 19(11) of Tamil
Nadu VAT Act due to delay in submission of returns. The Company has
filed a writ petition against the notice in the High Court of Madras
and interim stay was granted by the Hon'ble High Court. Issue of demand
notice will be decided after outcome of the Judgment on Writ Petition.
vi) The Company has a Sales tax demand in respect of Inter-state
purchase of goods relating to the financial year 2002-03 under
Tamilnadu General Sales Tax Act for an amount of Rs 320,340 /-
(Previous Year Rs. 320340/-).
2. Secured Loans:
i) Cash credit /Working capital term Loan from SBI is secured by
- The first charge on all the current assets of the company including
hypothecation on construction materials, work in progress, receivables.
- First charge (equitable mortgage) of company's share of 70% of the
built-up space together with undivided share of land to an extent of
87,712 Sq.ft at Navallur Village, Old Mahabalipuram Road, Kanchipuram
District, Chennai.
AS COLLATERAL SECURITY:
- First charge on all the fixed assets of the company created / to be
created out of the proposed term loan.
- Equitable mortgage of residential property at hakimpet village,
jubilee hills, Hyderabad.
- Equitable mortgage of vacant land at kollur village, medak, Andhra
Pradesh.
- Pledge of 2585850 shares of Sri Prakash Challa and Sri Suresh Challa.
- Pledge of 2585850 shares of Sri Prakash Challa, Sri Suresh Challa.
- Vehicle loans availed from Axis Bank Ltd, HDFC Bank Ltd and are
secured by hypothecation of vehicles.
ii) Subsequent to the balance sheet date, the Company has repaid the
outstanding balance and completely closed the working capital term
loan. Consequent to this closure of the loan, SBI has conveyed to
release the pledge on the shares of the promoters.
3. The Company is seeking confirmations from its suppliers whether they
fall under the category of micro, small and medium enterprises as
mentioned under the Micro, Small and Medium Enterprises Development
Act,2006 (MSMED Act, 2006).Based on confirmations received till date,
the company believes that it does not have any outstanding dues towards
Micro, Small and Medium Enterprises. Further the company has not
paid/accrued any interest under this MSMED Act.
11. Extraordinary Income being Non-compete fee of Rs. 58,245,046/-
received from SSPDL Interserve Private Limited.
12. During the year some of the fixed assets are sold to SSPDL
Interserve Private Limited for an amount of Rs. 35,164,953/-
14. Segment Information:
Since the company has only one segment, i.e. Property Development and
operations of the company has been carried out in India, separate
information on Segment Reporting as per the Accounting Standard 17
issued by the ICAI is not required.
15. As required under Accounting Standard 18 "Related party
Disclosures" (AS-18), following are details of transactions during the
year with the related parties of the Company as defined in AS 18:
i. List of the Related parties and Relationships:
Subsidiaries:
1. M/s. SSPDL Resorts Pvt Ltd.
2. M/s. SSPDL Reality India Pvt Ltd.
3. M/s. SSPDL Real Estates India Pvt Ltd.
4. M/s. SSPDL Matrix Towers Pvt Ltd.
5. M/s. SSPDL Infra Projects India Pvt Ltd.
6. M/s. Kollur Residential Project Pvt Ltd.
7. M/s. SSPDL Almoayyed Projects Pvt Ltd.
8. M/s. SSPDL Interserve Pvt Ltd.
Associates:
a) By virtue of share holding.
1. M/s. Northwood Infratech Pvt Ltd.
2. M/s. Northwood Constructions India Pvt Ltd.
3. M/s. Northwood Properties India Pvt Ltd.
4. M/s. Northwood Realty India Pvt Ltd
5. M/s. Northwood Residential Ventures India Pvt Ltd.
6. M/s. Northwood Township Projects Pvt Ltd.
7. M/s. SSPDL Northwood Homes Pvt Ltd.
8. M/s. SSPDL Northwood Residence Pvt Ltd.
9. M/s. SSPDL Northwood Villas Pvt Ltd.
10. M/s. Alpha City Chennai IT Park Projects Pvt Ltd.
11. M/s. SSPDL Infrastructure Developers Pvt Ltd.
b) Enterprises owned/significantly influenced by Key Management
Personnel
1. M/s Alpha City Chennai IT Park Projects Pvt Ltd.
2. M/s. Sri Satya Sai Constructions (Partnership Firm)
3. M/s. Sri Satya Sai Constructions (Sole Proprietory Concern)
4. M/s. Sri Krishna Devaraya Hatcheries Private Limited
5. M/s. SSPDL Ventures Pvt Ltd.
6. M/s. SSPDL Properties Pvt Ltd.
7. M/s. SSPDL Retreat Pvt Ltd.
8. M/s. SSPDL Interserve Pvt Ltd.
Key Managerial Personnel:
1. Mr. Challa Prakash Managing Director
2. Mr. Challa Suresh Director
3. Mr. E. Bhaskar Rao Director
18. Other information required to be disclosed as per part II of
Schedule VI to the Companies Act, is either 'NIL' or 'NOT APPLICABLE'
in the case of this company.
19. Previous year figures have been regrouped / reclassified wherever
considered necessary to conform to this year's classification.
Mar 31, 2010
1. Contingent liabilities: (Amount in Rupees)
Sl. No. Particulars Year ended Year ended
31.03.2010 31.03.2009
1 Sales tax demand under Tamilnadu
General Sales-tax Act 320,340 320,340
2 Sales tax dispute on disallowance
of input tax credit under 32,96,101 -
- Tamilnadu General Sales Tax Act
3 BGs & LCs outstanding as at
31st March, 2010 7,19,87,376 62,681,423
2. Estimated amount of contracts remaining to be executed on capital
account and not provided for (net of advances) Rs.Nil (Previous Year
Rs.Nil).
3. Secured Loans:
Cash credit /Working capital term Loan from SBI is secured by
- the first charge on all the current assets of the company including
hypothecation on construction materials, work in progress, receivables.
- first charge (equitable mortgage) of companys share of 70% of the
proposed built-up space together with undivided share of land to an
extent of 1,09,589 Sq.ft at Navallur Village, Old Mahabalipuram Road,
Kanchipuram District, Chennai.
- Personnel guarantee of Sri Prakash Challa Managing Director, Sri
Suresh Challa, and Directors of the company. AS COLLATERAL SECURITY:
- First charge on all the fixed assets of the company created / to be
created out of the proposed term loan.
- Equitable mortgage of residential property at hakimpet village,
jubilee hills, Hyderabad.
- Equitable mortgage of vacant land at kollur village, medak, Andhra
Pradesh.
- Pledge of 2585850 shares of Sri Prakash Challa, Sri Suresh Challa.
4. a) The identification of suppliers as small scale industrial under
takings (SSIs) has been done to the extent information provided by the
suppliers to the Company. On the basis of this information, there are
no amounts due to Small Scale Industrial undertakings exceeding Rs. 1
Lakh and outstanding for more than 30 Days.
b) There are no delays in payments to Micro and Small enterprises as
required to be disclosed under the Micro, Small and Medium Development
Act, 2006. The information regarding Micro and Small enterprises has
been determined to the extent such parties have been identified on the
basis of information available with the Company.
5. During the year the company received notice from Office of the
Commercial Tax Officer, Chennai directing to pay Rs.32,96,101/- along
with interest on disallowance of input Tax claimed by the company
during 2006-07 under Tamil Nadu VAT Act Section 19(11) due to delay in
submission of returns .
6. As per Accounting Standard 15 "Employees Benefits", the
disclosures of Employees benefits as defined in the Accounting Standard
are given below
7. Segment Information:
Since the company has only one segment, i.e. Property Development and
operations of the company has been carried out in India, separate
information on Segment Reporting as per the Accounting Standard 17
issued by the ICAI is not required.
8. As required under Accounting Standard 18 "Related party
Disclosures" (AS-18), following are details of transactions during the
year with the related parties of the Company as defined in AS 18:
i. List of the Related parties and Relationships:
Subsidiaries: Enterprises owned/significantly
influenced by Key
Management Personnel:
1. M/s. SSPDL Resorts Pvt Ltd
2. M/s. SSPDL Reality India Pvt Ltd 1. M/s Alpha City Chennai IT Park
Projects Pvt Ltd
3. M/s. SSPDL Real Estates
India Pvt Ltd 2. M/s. Sri Satya Sai
Constructions
(Partnership Firm)
4. M/s. SSPDL Matrix Towers Pvt Ltd 3. M/s. Sri Satya Sai
Constructions (Sole
Proprietory Concern)
5. M/s. SSPDL Infra Projects
India Pvt Ltd 4. M/s. Sri Krishna Devaraya
Hatcheries Private Limited
6. M/s. Kollur Residential
Project Pvt Ltd 5. M/s. SSPDL Ventures Pvt Ltd
7. M/s. SSPDL Almoayyed
Projects Pvt Ltd 6. M/s. SSPDL Properties Pvt Ltd
7. M/s. SSPDL Retreat Pvt.Ltd
Associates: Key Managerial Personnel:
1. M/s. Northwood
Infratech Pvt Ltd
1. Mr. Challa Prakash Managing Director
2. M/s. Northwood
Constructions India
Pvt Ltd
3. M/s. Northwood
Properties India Pvt Ltd 2. Mr. Challa Suresh Director
4. M/s. Northwood Realty
India Pvt Ltd 3. Mr. E. Bhaskar Rao Director
5. M/s. Northwood Residential
Ventures India Pvt Ltd
6. M/s. Northwood Township
Projects Pvt Ltd
7. M/s. SSPDL Northwood Homes Pvt Ltd
8. M/s. SSPDL Northwood Residence Pvt Ltd
9. M/s. SSPDL Northwood Villas Pvt Ltd
10. M/s. Alpha City Chennai IT Park Projects Pvt Ltd
11. M/s. SSPDL Infrastructure Developers Pvt Ltd
9. Other information required to be disclosed as per part II of
Schedule VI to the Companies Act, is either NIL or NOT APPLICABLE
in the case of this company.
10. Previous year figures have been regrouped / reclassified wherever
considered necessary to conform to this years classification.