(1) Contingent liabilities not provided for:
a) Guarantees given by the banks on behalf of the Company Rs
44,94,65,766/- (Previous year Rs 61,51,09,603/ )
b) Unexpired Letters of Credit Rs 12,87,64,359/- (Previous year Rs
c) Corporate guarantee given to Bank and Financial Institution on
behalf of subsidiary company namely Atlanta Infra Assets Ltd. (formerly
known as Balaji Toll Ways Ltd.) amounting to Rs 1,50,00,00,000/-
(Previous year 1,50,00,00,000) against term loan availed by them
d) Disputed Income Tax demand for which appeal is pending before
Appellate Authority Rs. Nil (Previous year Rs 12,28,55,795/-)
(2) 7 years National Saving Certificates and Kisan Vikas Patra of the
face value of Rs 8,35,200/- (Previous year Rs 8,35,200/-) have been
lodged as security with Municipal Corporation, Mumbai.
(3) In the opinion of the Management, the Current Assets, Loans and
Advances and Current Liabilities are approximately stated if realized
in the ordinary course of business. The balances of Debtors, Creditors
and Loans & Advances are subject to confirmation and reconciliation, if
any. The provisions for all other liabilities is adequate and not in
excess of the amount reasonably necessary.
(4) Amount paid as Compensation for short-term loans availed by the
Company are treated as discounting charges by the Company and has been
merged with interest and financial charges.
(5) The Company, following the principle of prudence, conservatism and
matching principle of cost and revenue in an EPC contract for
Engineering, Designing, Procuring and Construction of road project in
Nagpur provides for expenditure on such contract so that profit from
the contract is accrued proportionately in relation to the physical
progress of the work throughout the contract. In view thereof, in this
account an amount of Rs 1,42,50,842/- (net of last year''s provision of Rs
14,20,66,721/-) has been adjusted in the Operating Expenses.
(6) During the year under consideration the Company has written back an
amount of Rs 8,68,21,329.15 as operating income which represents
unclaimed and excess provision of expenses in respect of completed
(7) The Government of Maharashtra, Public Works Department (PWD) vide
agreement dated 18.10.2000 originally awarded a contract of
construction of Mumbra – Kausha Bypass Project on NH – 4, Mumbai Pune
Road on Built, Operate & Transfer (BOT) basis for a concession period
of 6 years and 9 months (including construction period).
Subsequently, due to change in the scope of work, a supplementary
agreement dated 11.5.2005 was entered which increased the concession
period to 10 years, 4 months and 25 days.
The Government of Maharashtra vide Notification dated 27.12.2007
authorised the Company to collect the toll from the vehicles passing
through the said road effective from 28.12.2007 to 11.9.2010 as per the
However, the Company made a representation before the Contracting
Authority for enhancement of the concession period for various reasons
including change in scope of work. Based on such representations, the
PWD has recommended to the concerned authority for the enhancement of
concession period from 10 years, 4 months and 25 days to 24 years, 1
month and 17 days. The Company referred the matter before the Arbitral
Tribunal to resolve the issue. In the mean time the Government of
Maharashtra issued an Interim Notification extending the concession
period from 11-09-2010 to 21-09-2014. Considering the Interim
Notification and recommendation of the Chief Engineer (PWD), Mumbai
Region and also relying upon the legal opinion of a counsel, the
management is reasonably certain about the enhancement of concession
period as stated above. In view of this, the toll collection rights are
amortized in the manner whereby the total cost of the project i.e. Rs
156.59 crores is written off over the proposed enhanced concession
period of 24 years, 1 month and 17 days. The Company, therefore,
amortized the toll collection rights at Rs 8.64 crores, as against the
amortization of Rs 21.75 crores based on the concession period notified
by the Government of Maharashtra.
(8) In pursuance on announcement dated March 29, 2008 of the Institute
of Chartered Accountants of India on Accounting of Derivatives, Mark to
Market Loss on outstanding derivative instruments as on March 31, 2011
stood at Rs 6,26,05,376/- in respect of Rupee Foreign Currency Swap
Transaction. The Company does not hold or issue derivate financial
instruments for trading or speculative purpose and all the derivates
entered in to by the Company are to mitigate or offset the risk that
arise from their normal business activities only. Pending the
quantification of actual loss or gain on the expiry of derivate
contract with the authorized dealer the Company has not provided for
the Mark to Market Losses in the interim period.
(9) Loans and advances includes:
a. Advance to companies in which Directors are interested as Directors
Rs 42,92,764/- (previous year Nil). Maximum amount outstanding during
the year Rs 10,23,53,404/- (previous year Rs Nil).
b. Advances to subsidiaries:
c. Short-term loan given to subsidiary company namely Atlanta Infra
Assets Ltd. (formerly known as Balaji Toll Ways Ltd.) Rs
5,76,00,379/-(Previous year - Nil). Maximum outstanding Rs 5,76,00,379/-
(Previous year- Nil)
(10) The Company had based on valuation made by approved valuers
revalued some of its fixed assets in the various accounting years. The
resultant appreciation aggregated to Rs 3,99,90,973/- has been added to
the Gross Block of the Fixed Assets and credited to the Revaluation
Reserve as per details.
Consequent to revaluation, the appreciated proportion of Fixed Assets
has been depreciated at the rates applicable to the respective assets
under the straight-line method of depreciation.
(11) Hitherto, the company was not making any provision for leave
encashment. The company has, during the year changed its accounting
policy with regards to recognition of leave encashment liability and
computed liability of leave encashment till date and accordingly made a
provision of Rs 3,29,933/-. Due to this profit for the year under
consideration is lower to that extent.
(12) Deferred Tax
a) In compliance with Accounting Standard – 22 (AS – 22) on Accounting
for Taxes on Income issued by the Institute of Chartered Accountants
of India in respect of the deferred tax liability arising on account of
timing difference for the current financial year, a sum of Rs
31,35,078/- has been accounted as deferred tax asset.
(13) Income-tax assessments have been completed up to assessment year
2008-09 (31st March, 2008).
(14) Disclosure as per Accounting Standard -15 (Revised)
a) Defined Contribution Plan
The Company has recognized, in the Profit and Loss Account for the year
ended 31st March, 2011, contribution to provident fund amounting to Rs
10,60,317/- as expenses under defined contribution plan under the head
Contribution to Provident and Other Funds in schedule - 15 –
Employees Emoluments and Benefits.
v) Valuation Method : Projected Unit Credit Method
Note: The above disclosure is made to the extent of information given
by the actuaries.
(15) Segment Information
The Company is engaged in the business of contracting activities i.e.
construction and development of infrastructure. The entire operations
are governed by the same set of risk and rewards and therefore the same
has been considered as representing single primary business segment.
The Company operates within a single geographical segment i.e. India.
In view of this, the disclosure requirements of Accounting Standard
(AS-17) Segment Reporting issued by the Institute of Chartered
Accountants of India are not applicable.
(16) There was no impairment Loss on Fixed Assets on the basis of
review carried out by the Management in accordance with the Accounting
Standard – 28 Impairment of Assets issued by the Institute of
Chartered Accountants of India.
(17) Since the principle business of the Company is construction
activities, additional information pursuant to the provisions of
paragraphs 3 & 4 of Part II of Schedule IV of the Companies Act, 1956
are given below to the extent applicable.
(18) There are no Micro, Small and Medium Enterprises to whom the
Company owes the dues which are outstanding for more than forty five
days as at the Balance Sheet date. The above information regarding
Micro, Small and Medium Enterprises has been determined to the extent
such parties have been identified on the basis of information available
with the Company.
(19) Consequent to the approval of the members of the Company and upon
requisite regulatory compliance, during the year, one equity share of Rs
10/- each of the Company has been sub- divided in to five equity shares
of Rs 2/- each fully paid up. The Earnings Per Share on Rs. 2/- each has
been restated for the corresponding period in accordance with
Accounting Standard (AS-20) on Earnings Per Share as notified under
The Companies (Accounting Standard) Rules, 2006.
(20) Related Party Disclosures:
As per the Accounting Standard – 18 Related Party Disclosure issued
by the Institute of Chartered Accountants of India, the disclosure of
transactions with related parties as defined in the Accounting Standard
for the period ended 31st March, 2011 is given below:
A) List of Related Parties
Key Management Personnel and Their Relatives
Riddhima M. Doshi
Rajendra Barot HUF
Ambalal P. Barot HUF
Associates and Joint Ventures
Atlanta Thakural Constructions
Atlanta-ARSS Joint Venture
ARSS-Atlanta Joint Venture
Enterprises over which Key Management Personnel is able to exercise
significant influence. Subsidiaries:
Atlanta Coalmines Pvt. Ltd.
Atlanta Energy Pvt. Ltd.
Atlanta Nature Homes Pvt. Ltd.
Atlanta Recycling Company Pvt. Ltd.
Atlanta Tourism Venture Ltd. (formerly known as Atlanta
Urban Infrastructure Projects Pvt. Ltd.)
Atlanta Infra Assets Ltd. (formerly known as Balaji
Toll Ways Ltd.)
Other Associates Companies
MORA Tollways Ltd. (formerly known as Atlanta Infraprojects
Developers Private Ltd.)
Vaikuntam Realty Pvt Ltd.
Atul Raj Builders Pvt. Ltd.
Shrikant Studio Pvt. Ltd.
Ideal Toll Road Investments & Operations Pvt. Ltd.
(As identified and certified by the Management and relied upon by the
auditors. For details of transactions entered into with the related
parties refer Annexure–1)
(21) Previous year''s figures have been regrouped and rearranged