Election 2014
SENSEX NIFTY
Moneycontrol.com India | Notes to Account > Construction & Contracting - Real Estate > Notes to Account from Godrej Properties - BSE: 533150, NSE: GODREJPROP
YOU ARE HERE > MONEYCONTROL > MARKETS > CONSTRUCTION & CONTRACTING - REAL ESTATE > NOTES TO ACCOUNTS - Godrej Properties
Godrej Properties
BSE: 533150|NSE: GODREJPROP|ISIN: INE484J01027|SECTOR: Construction & Contracting - Real Estate
SET ALERT
|
ADD TO PORTFOLIO
|
WATCHLIST
LIVE
BSE
Apr 17, 17:00
218.90
11.6 (5.6%)
VOLUME 83,775
LIVE
NSE
Apr 17, 12:17
213.10
3.4 (1.62%)
VOLUME 68,843
Mar 12
Notes to Accounts Year End : Mar '13
Note 1
 
 (a) a scheme of amalgamation (the scheme) for the amalgamation of
 Godrej Waterside Properties Private limited (GWPPl or the Transferor
 company) (a wholly owned subsidiary) with Godrej Properties limited
 (GPl or the Transferee company), with effect from april 1, 2012,
 (the appointed date) was sanctioned by the Hon''ble High court of
 Judicature at Bombay (the court), vide its Order dated april 12, 2013
 and certified copies of the Order of the court sanctioning the scheme
 were filed with the Registrar of companies, Maharashtra on april 29,
 2013 (the Effective Date). accordingly the standalone results of the
 company for the year ended March 31, 2013, include the results of the
 erstwhile GWPPl for the financial year ended March 31, 2013.
 
 (b) The amalgamation has been accounted for under the Purchase method
 as prescribed by accounting standard (as-14) on accounting for
 amalgamation notified under the companies (accounting standards)
 Rules, 2006. The company has carried out the accounting treatment
 prescribed in the scheme as sanctioned by the Hon''ble High court of
 Judicature at Bombay. The required disclosures as per paragraph 42 of
 accounting standard 14 (as-14) ''accounting for amalgamations'' as
 prescribed under the companies (accounting standards) Rules, 2006 has
 been provided. accordingly, the scheme has been given effect to in
 these accounts and all the assets and liabilities of GWPPl stands
 transferred to and vested in the Transferee company with effect from
 the appointed Date. in accord- ance with the scheme, the assets and
 liabilities of GWPPl have been taken over and recorded at their fair
 values as determined by the Board of Directors of GPl.
 
 (d) To give effect to the Honorable Bombay High court''s order dated
 april 12, 2013 regarding scheme of amalgamation, the following actions
 have been performed:
 
 (i) The cost and expenses arising out of or incurred in carrying out
 and implementing the scheme amounting Rs. 5,300,000/- have been
 directly adjusted against the opening balance of surplus in statement
 of Profit & loss of the Transferee company.
 
 (ii) The amount of Rs. 1,228,652,637/- arising out of the difference
 between the fair value of the net assets of the Transferor company
 taken over and cancellation of intercompany investments loans and
 advances between the Transferor company and the Transferee company has
 been adjusted from the opening balance of General Reserve and opening
 balance of surplus in the statement of Profit & loss as per the scheme.
 
 (e) The following amounts have been adjusted from the opening balance
 of General Reserve and Opening balance in the statement of Profit &
 loss.
 
 (f) in accordance with the scheme of amalgamation, an amount of Rs.
 1,228,652,637/- on account of Goodwill on merger has been adjusted from
 the opening balance in the General Reserve and Opening balance of
 surplus in the statement of Profit & loss instead of amortising the
 same in the statement of Profit & loss over a period of five years. The
 cost and expenses arising out of or incurred in carrying out and
 implementing the scheme amounting to Rs. 5,300,000/- have been directly
 adjusted from the Opening balance of surplus in the statement of Profit
 & loss of the company. Had the scheme not prescribed the above
 treatment, the profit for the year would have been lower by Rs.
 251,030,527/- , the Goodwill would have been higher by Rs.
 982,922,110/- (net written down value), the General Reserve account
 would have been higher by Rs. 462,000,000/- and the surplus in the
 statement of Profit & loss would have been higher by Rs.  520,922,110/-
 since the entire issued, subscribed and paid-up capital of the
 Transferor company was held by the Transferee company, upon the scheme
 becoming effective, no shares of the Transferee company have been
 allotted in lieu or exchange of its holding in GWPPl and the share
 capital of GWPPl stands cancelled.
 
 (g) since the aforesaid scheme of amalgamation of the above mentioned
 company with the company, which is effective from april 1, 2012, has
 been given effect to in these accounts, the figures for the current
 year to that extent are not comparable with those of the previous year.
 
 Note 2
 
 Dues to Micro and Small Enterprise
 
 Disclosure of trade payables and other liabilities is based on the
 information available with the company regarding the sta- tus of the
 suppliers as defined under the Micro, small & Medium Enterprises
 Development act 2006. There is no amount overdue as on 31st March,
 2013 to Micro & small Enterprises on account of principal amount
 together with interest and also during the previous year.
 
 Note 3
 
 Employee Stock Option Plan:
 
 a) During the financial year ended 31st March, 2008, the company
 instituted an Employee stock Option Plan (GPl EsOP) approved by the
 Board of Directors, shareholders and the Remuneration committee, which
 provided allotment of 442,700 options convertible into 442,700 Equity
 shares of Rs. 10/- each to eligible employees of Godrej Properties
 limited and its subsidiary companies (the Participating companies) with
 effect from 28th December, 2007.
 
 The scheme is administered by an independent EsOP Trust which has
 purchased shares from Godrej industries limited (The Holding company),
 equivalent to the number of options granted to the eligible employees
 of the Participating companies.
 
 all the Options Outstanding as on March 31, 2013 are vested.
 
 The employee share based payment plans have been accounted based on the
 intrinsic value method and no compensation expense has been recognized
 since the price of the underlying equity shares on the grant date is
 same /less than exercise price of the option, the intrinsic value of
 option, therefore being determined as nil.
 
 The company has provided loan of Rs. 443,402,597/- (Previous Year Rs.
 443,911,462/-) to GPl EsOP, which is administered by an independent
 EsOP Trust which has purchased shares of GPl from Godrej industries
 limited equivalent to the number of stock options granted from time to
 time to eligible employees. The Market Value as on March 31, 2013, of
 the shares held by the EsOP trust is lower than the holding cost of
 these shares by Rs.123,999,119/- (net of Provision of Rs.
 58,923,028/-), Previous year Rs. 82,347,882/- (net of Provision Rs.
 58,923,028). The repayment of the loans granted by the company to EsOP
 Trust is dependent on the exercise of the options by the employees and
 the market price of the underlying shares of the unexercised options at
 the end of the exercise period. The fall in value of the underlying
 equity shares is on account of market volatility and the loss, if any,
 can be determined only at the end of the exercise period.
 
 b) The company has provided loan of Rs. 75,320,420/- (Previous Year Rs.
 89,803,589/-) to Godrej industries limited Employee stock Option scheme
 (Gil EsOP), which is administered by an independent EsOP Trust which
 purchases shares of Gil from the market equivalent to the number of
 stock options granted from time to time to eligible employees. The
 repayment of the loans granted by the company to EsOP trust is
 dependent on the exercise of the options by the employees and the
 market price of the underlying shares of the unexercised options at the
 end of the exercise period.
 
 Note 4
 
 Employee Stock Grant Scheme
 
 a) During the period april 1, 2011 to March 31, 2013, the company
 instituted an Employee stock Grant scheme (GPl EsGs) approved by the
 Board of Directors, shareholders and the Remuneration committee, which
 provided allotment of 93,232 options convertible into 93,232 Equity
 shares of Rs. 10/- each to eligible employees of Godrej Properties
 limited, its Holding and its subsidiary companies (the Participating
 companies) 41,203 options with effect from 7th May, 2011, 1,878 options
 w.e.f. 1st October 2011 , 36,208 w.e.f. 1st June 2012 , 11,020 w.e.f.
 1st June 2012, 2,218 w.e.f.  1st august 2012, 345 w.e.f. 1st november
 2012 and 360 w.e.f. 1st February 2013. Out of the total 93,232 stock
 grants
 
 Note 5
 
 The amount of exchange difference included in the statement of Profit
 and loss, is Rs. 60,385/- (net gain) under the head Other income
 (Previous Year Rs. 640,397/-(net loss)).
 
 Note 6
 
 Segment Information:
 
 as the company has only one business segment, disclosure under
 accounting standard 17 on segment Reporting issued by the institute
 of chartered accountants of india is not applicable.
 
 Note 7
 
 Leases
 
 a) The company''s significant leasing arrangements are in respect of
 operating leases for Residential premises. lease income from operating
 leases is recognized on a straight-line basis over the period of lease.
 The particulars of the premises given under operating leases are as
 under:
 
 b) The company''s significant leasing arrangements are in respect of
 operating leases for commercial / Residential prem- ises. lease
 expenditure for operating leases is recognized on a straight-line basis
 over the period of lease. These leasing arrangements are cancellable,
 and are renewable on a periodic basis by mutual consent on mutually
 accepted terms. The particulars of the premises taken on operating
 leases are as under:
 
 Note 8
 
 Previous year figures have been regrouped wherever necessary to confirm
 to current year''s classification.
Source : Dion Global Solutions Limited
Quick Links for godrejproperties
Explore Moneycontrol
Stocks     A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z | Others
Mutual Funds     A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z
Copyright © e-Eighteen.com Ltd. All rights reserved. Reproduction of news articles, photos, videos or any other content in whole or in part in any form or medium without express written permission of moneycontrol.com is prohibited.