The company, Arihant Foundations and Housing Ltd was incorporated on
6th March, 1992. The Company is engaged in the business of real estate
development of residential, commercial complexes and IT Parks.
1 CONTINGENT LIABILITIES, PROVISIONS AND CONTINGENT ASSETS
i) Sales tax liability, if any on works contracts carried out by the
company is considered by management as not material but if any
liability arises it will be recovered from customers.
ii) The income tax department has filed appeal against the order of the
CIT (Appeal) before the income tax apellate tribunal for Asst Yr:
2004-2005, 2005-2006, 2007-2008 and 2009-2010
iii) Amount of service tax under dispute: Rs.23,16,081/- pertaining to
period october 2004 to march 2007 (Previous year: Rs.23,16,081/- for
the period october 2004 to march 2007)
iv) HUDCO has filed a counter suit against the order of DRT to increase
the interest rate payable from 9%. As such, the interest liability of
the company may be increased
v) The company may receive interest on amounts paid by it for various
appeals which are pending.
1. The Company does not expect any reimbursements in respect of the
above contingent liabilities.
2. It is not practicable to estimate the timing of cash outflows, if
any, in respect of matters stated above pending resolution of the
2. SEGMENT REPORTING
The company is primarily in the business of real estate development and
related activities including construction. Major exposure is to
residential and commercial construction and development of IT parks.
Further majority of the business conducted is within the geographic
boundaries of India.
In view of the above, in the opinion of the Management and based on the
organizational and internal reporting structure, the company''s
business activities as described above are subject to similar risks and
returns. Further, since the business activities undertaken by the
company are within India, in the opinion of the Management, the
environment in India is considered to have similar risks and returns.
Consequently the company''s business activities primarily represent a
single business segment. Similarly, this business operations in India
represent a single geographical segment.
3 a) CONSERVATION OF ENERGY AND TECHNOLOGY ABSORPTION
The company does not own any manufacturing facility. Hence, the
requirements pertaining to disclosure of particulars relating to
conservation of energy, technology absorption as prescribed under the
Companies (Disclosure of particulars in the report of board of
directors) Rules, 1988, are not applicable. However, the company has
commissioned a device named power factor, which reduces the consumption
of energy. The company has also taken intiative to reduce the power and
4 The exceptional item of Rs. 2,80,03,796/- as shown in the
statement of profit and loss for the year ended 30th Sep- tember, 2012
represents the provision created against the interest income.
5 PREVIOUS YEAR FIGURES
Previous year figures have been regrouped, rearranged and reclassified
wherever considered necessary.
6 PRIOR YEAR COMPARATIVES
Till the year ended 30th September, 2011, the company was following
pre-revised schedule VI to the Companies Act 1956, for the preparation
and presentation of financial statements. During the year ended 30th
Septemper, 2012, the revised schedule VI notified under the Act has
become applicable to the company. The company has reclassified previous
year figures to conform to this year''s clasification as per revised
schedule VI. The adoption of revised schedule VI does not impact
recognition and measurement principles followed by the company for the
preparation of financial statements. However, it significantly impacts
presentation and disclosures made in the financial statements.
Consequently, prior year figures are not comparable to those which are
as per the revised schedule VI requirements.