Labh Construction & Industries Ltd. के अकाउंट के लिये नोट

Mar 31, 2014

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

Contingent liabilities

Claims against the company not acknowledged as debt 85,201,767.00 88,150,537.00

Unprovided interest on overdue secured loans pending litigation 379,532,731.26 311,263,530.00

Guarantees — —

Other money for which the company is contingently liable — —

Sub Total 464,734,498.26 399,414,067.00

Commitments

Estimated amount of contracts unexecuted on capital account — —

Uncalled liability on shares and other investments partly paid — —

Other commitments

Interest payable on unsecured loans Amount not Amount not ascertained ascertained

Interest/penalty payable on Amount not Amount not account of overdue secured loans ascertained ascertained

Interest/penalty payable on account Amount not Amount not of delayed statutory payments ascertained ascertained

Interest/liquidated damages payable Amount not Amount not on account of delayed/ defective work ascertained ascertained

Sub Total - -

Total 464,734,498.26 399,414,067.00

a Income Tax Department has raised demand of Rs 39.29 lacs in resect of the AY 1999-2000 in the case of the Company against which the management has filed an appeal. As the management is confident of succeeding in the same, no provision is proposed to be made on that account. b Income Tax Department has raised demand of Rs 41.05 lacs (Rs.22.67 lacs and Rs.18.38 lacs) in respect of the AY 2003-04 in the case of the Company against which the management has filed an appeal. As the management is confident of succeeding in the same, no provision is proposed to be made on that account.

c Income Tax Department has raised demand of Rs 144.25 lacs in respect of the AY 2006-07 in the case of the Company against which the management has filed an appeal. As the management is confident of succeeding in the same, no provision is proposed to be made on that account. d Income Tax Department has raised demand of Rs 41.61 lacs in respect of the AY 2008-09 in the case of the Company against which the management has filed an appeal. As the management is confident of succeeding in the same, no provision is proposed to be made on that account. e One of the principals of the company, Delhi Development Authority has raised a demand of Rs 144.16 lacs in respect of the work done by the company on that contract. However the management is contemplating taking appropriate legal recourse for the same. Hence no provision is proposed to be made on that account.

2 Figures are rounded off to the nearest Rupees.

3 Figures stated in bracket are those in relation to the previous year.

4 The financial statements have been presented as per the Revised Schedule VI to the Companies Act 1956. Accordingly the assets and liabilities have been bifurcated between long term and short term basis depending upon the perception of the management. Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure.

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Mar 31, 2013

Note 1 : Corporate Information

The company is engaged in the business of the development of real estate and contractural assignments of civil contracts. All the real estate development projects undertaken by the company were completed in earlier years, hence no business was done on that account during the year. However the company during the year sold certain parking slots in the projects already completed and earn revenue out of that. Further in view of on going dispute in respect of contractual assignments undertaken by the company in earlier years, no business was done on that account also during the year.

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

Contingent liabilities

Claims against the company not acknowledged as deb t 88,150,537 28,803,045

Unprovided interest on overdue secured loans pending litigation 230,533,884 195,746,208

Guarantees

Other money for which the company is contingently liable

Sub Total 318,684,421 224,549,253

Commitments

Estimated amount of contracts unexecuted on capital account

Uncalled liability on shares and other investments partly paid

Other commitments

Interest payable on unsecured loans Amount not Amount not ascertained ascertained

Interest/penalty payable on account of overdue secured loans Amount not Amount not ascertained ascertained

Interest/penalty payable on account of delayed statutory payments Amount not Amount not ascertained ascertained

Interest/liquidated damages payable on account of delayed/ Amount not Amount not defective work ascertained ascertained

Sub Total

Total 318,684,421 224,549,253

a Income Tax Department has raised demand of Rs 6.54 lacs in resepct of the AY 1999-2000 in the case of the Company against which the management has filed an appeal. As the management is confident of succeeding in the same, no provision is proposed to be made on that account.

b Income Tax Department has raised demand of Rs 99.47 lacs in resepct of the AY 2001-02 in the case of the Company against which the management has filed an appeal. As the management is confident of succeeding in the same, no provision is proposed to be made on that account.

c Income Tax Department has raised demand of Rs 156.04 lacs in resepct of the AY 2002-03 in the case of the Company against which the management has filed an appeal. As the management is confident of succeeding in the same, no provision is proposed to be made on that account.

d Income Tax Department has raised demand of Rs 41.05 lacs in resepct of the AY 2003-04 in the case of the Company against which the management has filed an appeal. As the management is confident of succeeding in the same, no provision is proposed to be made on that account.

e One of the principals of the company, Delhi Development Authority has raised a demand of Rs 144.16 lacs in resepct of the work done by the company on that contract. However the management is contemplating taking appropriate legal recourse for the same. Hence no provision is proposed to be made on that account.

3 The company has received Arbitration award in respect of the impending proceedings of one of the Contractual assignments taken by it in earlier years. However in view of the subsequent legal action initiated by both the parties, no cognisance of the award has been taken in the accounts. The company has carried amount receivable Rs 60.89 lacs and payable Rs 115.31 lacs both on that account as assets and liabilites respectively.

4 Income & Expenditure in Foreign Currency. Rs.Nil (P.Y. Rs. Nil) .

5 Figures are rounded off to the nearest Rupees.

6 Figures stated in bracket are those in relation to the previous year.

7 The Revised Schedule VI has become effective from 1 April, 2011 for the preparation of financial statements. Accordingly the assets and liabilities have been bifurcated between long term and short term basis depending upon the perception of the management. Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure.

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Mar 31, 2012

Note 1 : Corporate Information

The company is engaged in the business of the development of real estate and contractu ral assignments of civil contracts. All the real estate development projects undertaken by the company were completed in earlier years, hence not business was done on that account during the year. Further in view of on going dispute in respect of contractual assignments undertaken by the company in earlier years, no business was done on that account also during the year

2 Income & Expenditure in Foreign Currency. Rs.Nil (RY. Rs. Nil).

3 Figures are rounded off to the nearest Rupees.

4 Figures stated in bracket are those in relation to the previous year.

5 The Revised Schedule VI has become effective from 1 April, 2011 for the preparation of financial statements. This has significantly impacted the disclosure and presentation made in thefinancial statements. Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure.

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Mar 31, 2011

I. CONTINGENT LIABILITIES

1) Claims against the Company, not acknowledged as debts, pending litigation : Rs.931.18 Lacs (Rs. 1688.25 lacs)

2) Estimated amount of contracts as estimated by the management, remaining to be executed on capital account (net of advances ) : NIL (NIL)

3) Income Tax Liabilities :

a) Order u/s 154 of Income Tax Act 1961 was passed in the case of the company for A.Y. 1999-2000 resulting into a demand of Rs 55.72 lacs on the company. The company has preferred an appeal against the same; hence no provision has been made for the liability.

b) Order u/s 246 (1)(a) of Income Tax Act 1961 was passed in the case of the company for A.Y.2001- 02 and AY 2002-03 resulting into a demand of Rs 174.62 lacs & Rs 195.03 lacs respectively, on the company. The company has preferred an appeal against the said order; hence no provision has been made for the liability.

c) Order u/s 158BC of Income Tax Act 1961 was passed in the case of the company for the Block Period resulting into a demand of Rs 24.75 lacs respectively, on the company. The company has preferred an appeal against the said order; hence no provision has been made for the liability.

d) Order u/s 143(3) & 271(1 )(c) of Income Tax Act 1961 was passed in the case of the company for A.Y. 2003-04 resulting into demand of Rs 22.67 lacs on the company. The company has preferred an appeal against the said order; hence no provision has been made for the liability.

e) Order u/s 143(3) rws 147 of Income Tax Act 1961 was passed in the case of the company for A.Y. 2006-07 resulting into demand of Rs 139.26 lacs on the company. The company has preferred an appeal against the said order; hence no provision has been made for the liability

f) Order u/s 143(3) of Income Tax Act 1961 was passed in the case of the company for A.Y. 2008-09 resulting into demand of Rs 43.91 lacs on the company. The company has preferred an appeal against the said order; hence no provision has been made for the liability

4) Municipal Tax Lab pectoral office premises: Rs.22.91lacs (Rs27.75lacs)

5) interest payable nun secured loans: amount not ascertained.(amount not ascertained)

6) interest, Penalties and other financial consequences arising on account of:

-delayed/defective execution in respect of contractual and developmental assignments : amount not ascertained (amount not ascertained )

-overdue secured loans : amount not ascertained (amount not ascertained)

-delayed/non compliances under various Fiscal Laws including Income tax, Sales Tax, GVAT, Works Contract Tax , Service Tax, PF, ESI etc. : amount not ascertained (amount not ascertained)

-Interest/liquidated damages payable on delayed refund of the booking amounts on cancellation thereof : amount not ascertained (amount not ascertained )

II. SIGNIFICANT EVENTS

1. During the year, the company has made an out of court settlement with one of its secured creditors, Gujarat Industrial Investment Corp Ltd , by payment of Rs. 150.58 Lacs as against the outstanding of Rs. 138.37 Lacs. The excess of Rs 12.21 lacs paid to the creditor being on account of interest has been included in the Financial charges debited to Profit & Loss A/c. Subsequent to its settlement, the Creditor has also withdrawn a winding up petition filed by them with the Hon'ble Gujarat High Court.

2. Subsequent to he Balance Sheet date, the company has made an out of court settlement with one of its secured creditors, Rajkot Nark Saharawi Bank Ltd , by payment of Rs. 43 Lacs as against the outstanding of Rs. 536.70 Lacs. The excess of Rs 493.70 lacs of the outstanding over the amount paid to the Bank shall be treated as income for the year in which the settlement has taken place, ie during the subsequent year.

III. SECURED LOANS

1. Status and details of security provided in respect of outstanding secured loans as per the accounts of company as at 31 -03-11, is marked as Annexure-A, hereto.

2. Some of the above referred secured loans are further secured by way of equitable mortgage of immovable properties, belonging to the principals of the company, as specified in the Annexure-A

3. The balances of secured loans as stated at Sr. 2 to 5 in Annexure-A are subject to confirmation and reconciliation. Such loans being overdue have been classified as non performing asset by the Lenders. Hence the company has not provided interest payable in respect thereof however the same shall be given effect as and when the liability is finalized / settled.

4. Of the secured loans, Global Trust Bank Limited, and Gujarat State Financial Corporation Limited, having total outstanding of Rs.423.03 lacs (Rs.423.03 lacs) as per the records of the company, have filed recovery suits in the court of law. Impending these proceedings, their claims have not been admitted in the books of accounts.

IV. UNSECURED LOANS & PUBLIC DEPOSITS

1. The company could not repay overdue public deposits of Rs. 2.58 (Rs. 2.58 Lacs) which have been re- grouped as current liabilities

V. FIXED ASSETS AND DEPRECIATION

1. During the earlier years company had fully written off carrying value of assets comprised in centering material, based on its estimated useful life and estimated realizable value thereafter. The company however continues to hold the asset without any corresponding monetary value thereof in the accounts.

2. The company has not provided depreciation of Rs. 1.35 lacs (Rs 1.42 lacs) on one of its office premises and that of Rs 0.16 lacs (Rs 0.20 lacs) on furniture and fixtures, both of which are included in the fixed assets.

3. Depreciation on the revalued portion of office building amounting to Rs. 1.00 lacs (Rs.1.05lacs) has been charged to profit and loss account

4. Fixed assets, at the year end, have been physically verified and certified by the management.

VI. INVESTMENTS

1. Investments at the year end, have been physically verified, valued and certified by the management.

2. Investments being long term, no provision have been made in the accounts for diminution in the value thereof.

3. Investments include an amount of Rs. 36.90 lacs (Rs. 36.90 lacs) towards the share application money, paid to its associates, allotment of shares against which is pending.

VII. DEVELOPMENT ASSIGNMENTS

1. During the earlier years, the company had completed work on two of its development assignments and the adjustments required upon finalizing the projects were made in the accounts for that year. The company is yet to receive 4.12 Lacs (122.95 lacs) from the principals of these projects which have been included in debtors.

2. During the earlier years, the company has completed work on one of its development assignments, viz, Sun city, Ahmadabad and the adjustments required upon finalizing the projects have been made in the accounts for the year. The company is yet to receive Rs. 11.15 Lacs (Rs.81.41 lacs) from the principals of these projects which have been included in debtors.

VIII. DEBTORS

1. Debtors include Rs.204.44 lacs (183.86 lacs) being overdue receivables from the principals of completed assignments. However no provision has been made on that account, as management is confident of its recovery.

2. Included in Debtors is Rs.141.22 lacs (600.85 lacs) being receivables from two projects, the development rights of the company, for which have been terminated in the earlier years. Against these receivables the company has so far received Rs.8.96 lacs (207.78 lacs) as booking advances from the members of these projects, which is included in current liabilities. As per the terms of termination, the company is entitled to obtain proportionate rights in the developed property which shall enable it to recover the balance amount from the members hence no provision has been made in the accounts.

IX. ADVANCES

1. Included in advances, are long outstanding advances of Rs. 19.37 lacs (Rs. 101.37 lacs), granted for acquisition of land or rights of development therein which are subject to confirmation. The rights there against, are still to be conveyed in favor of the company. However the management being confident of obtaining the rights has not made any provision out of such advances.

2. During the year 2000-01, the company had sold one of its Block/Paver making plant which was hypothecated to a secured lender pending execution of final agreement between the parties and confirmation/ acknowledgement in that respect, the company had accounted for the corresponding reduction of its term liability to that extent. The balance amount of Rs 29.92 lacs (Rs 29.92 lacs), receivable on this account has been stated as current asset, as receivable from the Lender, is subject to confirmation and reconciliation.

3. During the earlier year, the company had paid Rs. 290 Lacs to Gujarat State Finance Corporation, against its overdue secured borrowings of Rs. 150 Lac. Efforts are underway for one time settlement with the lender. Hence, pending the final settlement of liability in that respect, excess of Rs 140 lacs paid to them is classified under Loans and advances which is subject to confirmation and reconciliation.

4. Included in advances is Rs.150.86 lacs (Rs 161.68 lacs), which are long outstanding and considered doubtful, however no provision for the same has been made in the accounts.

5. Advances as at 31-03-2011 include interest free advances to the companies under same management or to the companies, firms or other persons in which directors are interested or to the directors or their relatives, as per ANNEXURE-B

X. DEPOSITS

Included in deposits are earnest money deposits, security deposits and retention money of Rs.70.46 lacs (Rs. 125.20 lacs) which is subject to confirmation and reconciliation. Of these deposits a sum of Rs 24.61 Lacs (24.61 lacs) is considered doubtful. However in view of the efforts made by the management no provision has been made in that respect.

XI. BANK CASH BALANCES

1. Bank balances include balances of Rs. 2.48 lacs (Rs. 2.97 lacs) which are subject to confirmation and reconciliation.

2. Out of the cash on hand belonging to the Company an amount of Rs.6.50 lacs was looted on 14th August, 1995. A complaint was lodged on 14th August, 1995 vide FIR No.I-246/95 with Vejalpur Police Station Ahmadabad, for the same. The amount has since been recovered by Police and handed over to Income Tax authorities through court of law. The proceedings in this respect are not yet complete. Hence, no provision for loss on this account has been made in the accounts and the amount has been stated under current assets.

3. Cash on hand at the year end has been physically verified and certified by the management.

XII. ADVANCE AGAINST PROPERTY/BOOKING RIGHTS

1. Included in Current Liabilities is an amount of Rs.115.31 lacs (Rs.119.10 lacs) received from its principals, for execution of the projects, which is subject to confirmation and reconciliation.

2. Included in the current liabilities is an amount of Rs.8.96 lacs (Rs. 207.78 lacs) as advances received from the members for booking of the premises, being developed by it, which is subject to confirmation and reconciliation.

3. Included in current liabilities is an amount of Rs.315.94 lacs (Rs. 373.88 lacs), payable as refund of the amount received towards premises booked and subsequently cancelled which is subject to confirmation and reconciliation.

4. balances other creditors for goods a& services are subject to confirmation and reconciliations

XIII. OTHER CURRENT LIABILIITES

1. Sundry creditors include dues to Small Scale Industrial undertaking for Rs.5.19 lacs (Rs.24.56 lacs)

2. Small Scale Industrial undertakings outstanding for more than 30 day are listed in Annexure C here to.

XIV. STATUTORY DUES

1. During the year 1997-98, the company had declared dividend @10% on equity Share Capital amounting to Rs.66.11 lacs for the year 1996-97, out of which dividend of Rs.65.24 lacs was unpaid. The amount of earlier years unpaid dividend is Rs.0.19 lacs. However, during the earlier year, the company had written back the total unpaid dividend of rs.66.11 lacs along with Corporate Dividend Tax of Rs.6.61 lacs, thereon, as the same could neither be paid nor be transferred to the credit of Central Government.

2. Current liabilities include unpaid refund of allotment money of Rs.2.69 lacs (Rs.2.69 lacs) since the company's public issue of shares in the year 1994-95. The company proposes to honor the repayment of such amount as and when the same is called for, out of its sources hence the same is not maintained in a separate bank account.

XV. DEFERRED TAXATION

a. The company has not recognized deferred tax asset in respect of unabsorbed depreciation, carry forward losses and other timing differences for the past years as well as for the current period in view of uncertainty regarding availability of sufficient future income against which such deferred tax asset can be realized.

XVI. OPERATIONAL INCOMES

Included in operational income is receipt of Rs.4.75 lacs (Rs.5.14 lacs), received from the members of various projects for execution of certain extra works in the units booked by them as well as other receipts from them, being accounted for on receipt basis.

XVII. SEGMENT REPORTING

Based on activities/risk & reward structure of the company has identified following two reportable business segments:

However there being no operations in both the segments the Details of turnover, profit, carrying value of assets and liabilities in respect of each of the above segments is not be given

XVIII. TRANSACTIONS WITH RELATED PARTIES

In respect of the transactions entered into by the company, during the year, with related parties, a statement disclosing list of such parties, nature of relationship as well as nature and value of transactions with them is disclosed separately, in statement marked as Annexure-D hereto.

XIX. Earning per share of issued, subscribed and paid-up capital of Company is disclosed in a statement marked as Annexure F, hereto.

XX. In the opinion of the Board of Directors, the Current Liabilities, Unsecured Loans, Current Assets, Loans & Advances are stated at the values realizable in the ordinary course of business.

XXI. Previous year figures have been regrouped and rearranged wherever necessary. Figures in brackets indicate corresponding figures for previous year.

XXII. Figures are rounded off to nearest Rupee.

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Mar 31, 2010

I. CONTINGENT LIABILITIES

1) Claims against the Company, not acknowledged as debts, pending litigation : Rs.1688.25 Lacs (Rs. 1688.25 lacs)

2) Unprovided interest on overdue secured loans pending litigation : Rs.4143.91 lacs (Rs. 5947.74 lacs)

3) Estimated amount of contracts as estimated by the management, remaining to be executed on capital account (net of advances ) : NIL (NIL)

4) Income Tax Liabilities :

a) Order u/s 154 of Income Tax Act 1961 was passed in the case of the company for A.Y. 1999-2000 resulting into a demand of Rs 6.54 lacs on the company. The company has preferred an appeal against the same with CIT Appeals; hence no provision has bee

b) Order u/s 246 (1)(a) of Income Tax Act 1961 was passed in the case of the company for A.Y.2001- 02 and AY 2002-03 resulting into a demand of Rs 109.54 lacs & Rs 156.04 lacs respectively, on the company. The company has preferred an appeal against

c) Order u/s 143(3) of Income Tax Act 1961 was passed in the case of the company for A.Y 2003-04 resulting into demand of Rs 22.67 lacs on the company. The company has preferred an appeal against the said order; hence no provision has been made for

d) Order u/s 271(1)C of Income Tax Act 1961 was passed in the case of the company for A.Y. 2003-04 resulting into demand of Rs 18.38 lacs on the company. The company has preferred an appeal against the said order; hence no provision has been made of

5) Municipal Tax Liability in respect of office premises : Rs. 27.75 lacs (Rs 23.25 lacs)

6) Interest payable on unsecured loans can-not be ascertained.

7) Interest, Penalties and other financial consequences arising on account of :

- delayed/defective execution in respect of contractual and developmental assignments : amount not ascertained (amount not ascertained )

- overdue secured loans : amount not ascertained (amount not ascertained)

- delayed/non compliances under various Fiscal Laws including Income tax, Sales Tax, GVAT, Works Contract Tax , Service Tax, PF, ESI etc. : amount not ascertained (amount not ascertained)

- Interest/liquidated damages payable on delayed refund of the booking amounts on cancellation thereof : amount not ascertained (amount not ascertained )

II. SIGNIFICANT EVENTS

1. During the earlier year, two of the secured creditors of the company namely Bank of Rajasthan and Gujarat Industrial Investment Corp. had filed winding up petition against it, in the Hon'ble Gujarat High Court. However in the opinion of the manage

2. During the year the company has completed development on major part of one of its development assignment, viz, Suncity. Accordingly it has booked revenue of Rs.731.43 Lacs being the balance amount of certified work completed thereon and it has tra

III. SECURED LOANS

1. Status and details of security provided in respect of outstanding secured loans as per the accounts of company as at 31 -03-10, is marked as Annexure-A, hereto.

2. Some of the above referred secured loans are further secured by way of equitable mortgage of immovable properties, belonging to the principals of the company, as specified in the Annexure A

3. The balances of secured loans as stated at Sr. 1 to 5 in Annexure A are subject to confirmation and reconciliation. Such loans being overdue have been classified as non performing asset by the Lenders. Hence the company has not provided interest

4. Of the secured loans, Global Trust Bank Limited, Gujarat Industrial Investment Corporation Limited, and Gujarat State Financial Corporation Limited, having total outstanding of Rs.561.40 lacs (Rs.561.40 lacs) as per the records of the company, hav

IV. UNSECURED LOANS & PUBLIC DEPOSITS

1. The company could not repay overdue public deposits of Rs. 2.58 (Rs. 2.58 Lacs).

2. The balances of unsecured loans are subject to confirmation.

V. FIXED ASSETS AND DEPRECIATION

1. During the earlier years company had fully written off carrying value of assets comprised in cantering material, based on its estimated useful life and estimated realisable value thereafter. The company however continues to hold the asset without

2. The company has not provided depreciation of Rs. 1.42 lacs (Rs 1.49 lacs) on one of its office premises and that of Rs 0.20 lacs (Rs 0.24 lacs) on furniture and fixtures, both of which are included in the fixed assets.

3. Depreciation on the revalued portion of office building amounting to Rs. 1.05 lacs (Rs.1.10lacs) has been charged to profit and loss account

4. Fixed assets, at the year end, have been physically verified and certified by the management.

VI. INVESTMENTS

1. Investments include an amount of Rs. 36.90 lacs (Rs. 36.90 lacs) towards the share application money, paid to its associates, allotment of shares against which is pending.

2. Investments being long term, no provision have been made in the accounts for diminution in the value thereof.

3. Share application money paid and pending allotment there against, is stated as investment at cost thereof.

4. Investments at the year end, have been physically verified, valued and certified by the management.

VII. INVENTORY

1. Inventory of work in progress in respect of Real estate Development projects, include inventory :

a. in respect of booked premises, at Rs. NIL (Rs. 528.75 lacs).

b. In respect of premises not booked, at Rs. NIL (Rs. 65.90 lacs)

2. During the earlier years, the company had completed work on two of its development assignments and the adjustments required upon finalizing the projects were made in the accounts for that year. The company is yet to receive 122.95 Lacs (236.22 lac

3. During the year, the company has completed work on one of its development assignments,viz, Suncity, Ahmedabad and the adjustments required upon finalizing the projects have been made in the accounts for the year. The company is yet to receive Rs.

4. Inventory of building materials and work in progress, at the year-end, is physically verified, valued and certified by the management.

VIII. DEBTORS

1. Debtors include Rs. 183.86 lacs (189.29 lacs) being overdue receivables from the principals of completed assignments. However no provision has been made on that account, as management is confident of its recovery.

2. Debtors include Rs.NIL (NIL) being long over dues in respect of the erstwhile manufacturing division of the Company.

3. Included in Debtors is Rs.600.85 lacs (633.16 lacs) being receivables from two projects, the development rights of the company, for which have been terminated in the earlier years. Against these receivables the company has so far received Rs.207.7

IX. ADVANCES

1. Included in advances, are long outstanding advances of Rs. 101.37 lacs (Rs. 118.47 lacs), granted for acquisition of land or rights of development therein which are subject to confirmation. The rights there against, are still to be conveyed in favo

2. During the year 2000-01, the company had sold one of its Block/Paver making plant which was hypothecated to a secured lender pending execution of final agreement between the parties and confirmation/ acknowledgement in that respect, the company ha

3. During the earlier year, the company had paid Rs. 290 Lacs to Gujarat State Finance Corporation, against its overdue secured borrowings of Rs. 150 Lac. Efforts are underway for one time settlement with the lender. Hence, pending the final settlement

4. Included in advances is Rs.161.68 lacs (Rs 235.75 lacs), which are long outstanding and considered doubtful, however no provision for the same has been made in the accounts.

5. Advances as at 31-03-2010 include interest free advances to the companies under same management or to the companies, firms or other persons in which directors are interested or to the directors or their relatives, as per ANNEXURE-B

X. DEPOSITS

Included in deposits are earnest money deposits, security deposits and retention money of Rs.125.20 lacs (Rs. 128.10 lacs) which is subject to confirmation and reconciliation. Of these deposits a sum of Rs 24.61 Lacs (24.61 lacs) is considered doubtful.

XI. BANK CASH BALANCES

1. Bank balances include balances of Rs. 2.97 lacs (Rs. 2.47 lacs) which are subject to confirmation and reconciliation.

2. Out of the cash on hand belonging to the Company an amount of Rs.6.50 lacs was looted on 14th August, 1995. A complaint was lodged on 14th August, 1995 vide FIR No.I-246/95 with Vejalpur Police Station Ahmedabad, for the same. The amount has since

3. Cash on hand at the year end has been physically verified and certified by the management.

XII. ADVANCE AGAINST PROPERTY/BOOKING RIGHTS

1. Included in Current Liabilities is an amount of Rs.119.10 lacs (Rs.140.60 lacs) received from its principals, for execution of the projects, which is subject to confirmation and reconciliation.

2. Included in the current liabilities is an amount of Rs.207.78 lacs (Rs. 1006.77 lacs) as advances received from the members for booking of the premises, being developed by it, which is subject to confirmation and reconciliation.

3. Included in current liabilities is an amount of Rs.373.88 lacs (Rs. 506.72 lacs), payable as refund of the amount received towards premises booked and subsequently cancelled which is subject to confirmation and reconciliation.

XIII. OTHER CURRENT LIABILIITES

1. Sundry creditors include dues to Small Scale Industrial undertaking for Rs.24.56 lacs (Rs.25.20 lacs)

2. Small Scale Industrial undertakings outstanding for more than 30 day are listed in Annexure C here to.

XIV. STATUTORY DUES

1. During the year 1997-98, the company had declared dividend @10% on equity Share Capital amounting to Rs.66.11 lacs for the year 1996-97, out of which dividend of Rs.65.24 lacs was unpaid. The amount of earlier years unpaid dividend is Rs.0.19 lacs

2. Current liabilities include unpaid refund of allotment money of Rs.2.69 lacs (Rs.2.69 lacs) since the company's public issue of shares in the year 1994-95. The company proposes to honour the repayment of such amount as and when the same is called

XV. DEFERRED TAXATION

a. The company has not recognized deferred tax asset in respect of unabsorbed depreciation, carry forward losses and other timing differences for the past years as well as for the current period in view of uncertainty regarding availability of suffic

XVI. OPERATIONAL INCOMES

Included in operational income is receipt of Rs.5.14 lacs (Rs.48.60 lacs), received from the members of various projects for execution of certain extra works in the units booked by them as well as other receipts from them, being accounted for on receipt b

XVII. SEGMENT REPORTING

Based on activities/risk & reward structure of the company has identified following two reportable business segments:

a) Real Estate development activity carried out in respect of residential/commercial projects, which are variable price contracts, and;

b) Construction contract activity comprising of, construction carried out on contractual basis, which are fixed price contracts.

Details of turnover, profit, carrying value of assets and liabilities in respect of each of the above segments to the extent the same could be bifurcated on reasonable basis is reported in Annexure-D hereto,

XVIII.TRANSACTIONS WITH RELATED PARTIES

In respect of the transactions entered into by the company, during the year, with related parties, a statement disclosing list of such parties, nature of relationship as well as nature and value of transactions with them is disclosed separately, in statem As per Annexure-E

XIX. Earning per share of issued, subscribed and paid-up capital of Company is disclosed in a statement marked as Annexure G, hereto.

XX. In the opinion of the Board of Directors, the Current Liabilities, Unsecured Loans, Current Assets, Loans & Advances are stated at the values realisable in the ordinary course of business.

XXI. Previous year figures have been regrouped and rearranged wherever necessary. Figures in brackets indicate corresponding figures for previous year.

XXII. Figures are rounded off to nearest Rupee.