A Corporate profile
Atlanta Limited (referred to as the company) and its subsidiaries are
engaged in the business of Infrastructure development Engineering,
Procurement and Construction (EPC) contracts, Public, Private
Partnership (PPP Model on Build Operate and Transfer (BOT) and Design,
Build, Finance, Operate and Transfer (DBFOT) basis. Infrastructure
Development activities include, inter-alia, Construction of Roads,
Highways, Bridges and Runways on Build Operate and Transfer (BOT) and
Design, Build, Finance, Operate and Transfer (DBFOT) basis. The company
is also involved in Real Estate Development, Tourism, infrastructure
business and Mining of coal, lime stones etc.
1.1 Equity shares
The company has one class of equity share having a face value of Rs. 2/-
each. Each shareholder is eligible for one vote per share held. In the
event of liquidation of the company, the equity shareholders are
eligible to receive the remaining assets of the company after
distribution of all preferential amounts, in proportion to their
1.2 Preference shares
a) 25% Cumulative Redeemable Non-Convertible Preference Shares of face
value of Rs. 10/- each were issued at a premium of Rs. 40/- each as under:-
i) 10,00,000 shares were issued on 28th March, 2005 ii) 15,00,000
shares were issued on 28th November, 2005 Total 25,00,000 shares
b) These shares are redeemable after 15 years or at any time at the
sole discretion of the company at Rs. 50/- per share
c) The said preference shares have a lock-in-period of 15 years
d) Preference Share holders have right to vote if and only if any,
under following situation:-
i) No dividend is paid for two years successively, or
ii) No dividend is paid for a period of three years out of a block of
1.3 The company has not granted any options to its employees under
employees stock options scheme (ESOP) since inception.
1.4 General Reserve has been created in terms of companies (Transfer of
Profits to Reserves) Rules, 1975 and is bound by the Rules in
1.5 In the 29th Annual General Meeting of the Company held on 28th
September, 2012, the Shareholders did not approve the dividend proposed
by Board of Directors for the financial year 2011-12 amounting to Rs.
1,63,00,000/-. Hence, the proposed dividend and tax on dividend thereon
aggregating to Rs. 1,89,44,268/- has been reversed in the accounts for
the financial year ended March 31, 2013.
1.6 Long Term Borrowings Secured by:
Term Loan from Allahabad Bank is secured by exclusive first charge by
way of assignment of all the rights, title, interest and benefits
whatsoever of the company relating to Mumbra By-pass BOT-Project and
securitization of entire toll receivable of Mumbra By-Pass through
Loan from Life Insurance Corporation of India Ltd is secured against
the surrender value of key man insurance policies of the Directors
assigned in favor of company.
Loan against pledge of shares are secured by pledge of
promoter/promoter group''s equity shares of Atlanta Ltd for due payment
of loan together with all interest ,liquidated damages,costs,charges
and other money payable under the loan agreements.
1.7 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 projects at
Nagpur, Ropar and Patna, 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, long term provision includes year end closing provision ofRs.
1,794,992,040/- (previous year Rs. 101,97,06,857/-).
2.1 *Amortization of BOT Rights is provided in accordance with
F.No.17/292/2011 CL -V dated 17th April, 2012 issued by the Ministry of
Corporate Affairs for fixing the amortization rates for noncurrent
assets being BOT Tolling Assets. The company has computed amortization
in accordance with the new Schedule XIV order.
2.2 Expenditure on EPC contracts
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 at
Mohania - Ara (Bihar), Ropar (Punjab) and 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. 77,52,85,182/- (net of previous year''s provision of Rs.
100,16,48,514/-) has been adjusted in the Operating expenses.
2.3 No provision has been made in respect of Leave Encashment, as the
employees of the company are required to utilize their entitlement of
earned leave before the end of the financial year.
(Amount in Rs.)
3 Contingent liabilities and commitments (to the extent not provided
for) March 31, 2014 March 31, 2013
(i) Contingent liabilities
a. Corporate guarantee given to
bank and financial Institution on
behalf of a 2,500,000,000 2,500,000,000
b. Guarantees on behalf of Company
given by Banks to Contracting
Authorities. 520,025,000 898,031,457
c. Disputed Income Tax Liability 406,495,900 121,369,260
a. Estimated amount of contracts remaining to be executed on capital
account and Nil Nil not provided for
b. Uncalled liability on shares and other investments partly paid Nil
c. Other commitments (specify nature) Nil Nil
4 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 are adequate and not
in excess of the amount reasonably necessary.
5 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 Standards
(AS-17) Segment Reporting issued by the Institute of Chartered
Accountants of India are not applicable.
6 Impairment of assets
There was no impairment Loss on fixed assets on the basis of review
carried out by the Management in accordance with the Accounting
Standards (AS-28) Impairment of Assets issued by the Institute of
Chartered Accountants of India.
7 Disclosures of related parties transactions_
As per the Accounting Standards (AS -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 Standards for the period ended 31st March, 2014 is given
A List of related parties i Key Management Personnel and their
Rajhoo Bbarot - Chairman & Managing Director Rikiin R. Bbarot - Joint
Managing Director Bhavana R. Bbarot Pooja R. Bbarot Ridhima M. Doshi
Rajhoo A. Bbarot - HUF Ambalal P. Barot - HUF ii Partnership firms and
joint ventures: ABT Developers Atlanta Thakural Constructions Shreenath
Builders AAP Constructions Atlanta-ARSS Joint Venture ARSS-Atlanta
Atlanta Coalmines Pvt. Ltd. Atlanta Energy Pvt. Ltd. Atlanta Hotels
Pvt. Ltd. Atlanta Recycling Company Pvt. Ltd. Atlanta Tourism
Ventures Ltd. Atlanta Infra Assets Ltd. Atlanta Ropar Tollways Pvt.
Ltd. MORA Tollways Ltd.
iv Associate Companies:
Lucknow Varanasi Tollways Pvt. Ltd. v Enterprises over which Key
Management Personnel is able to exercise significant influence: Atul
Raj Builders Pvt. Ltd. Vaikuntam Realty Pvt. Ltd. Shrikant Studios
(As identified and certified by the Management and relied upon by the
auditors, for details of transactions (excluding reimbursement) entered
into with the related parties refer Annexure - 1)
8 In the opinion of the Board, except otherwise stated all assets
other than fixed assets and non current investments, have a realisable
value in the ordinary course of business which is not different from
the amount at which it is stated. The provision for current liabilities
and other liabilities is adequate and not in excess of amount
9 The company has regrouped/reclassified the previous year figures
whereever necessary to conform the current year presentation.