Moneycontrol
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
Oct 19, 19:50
640.10
-9.45 (-1.45%)
VOLUME 7,898
LIVE
NSE
Oct 19, 19:45
642.90
-5.6 (-0.86%)
VOLUME 26,310
Array
Mar 16
Notes to Accounts Year End : Mar '17

i) Exemptions from retrospective application:

- Business combination exemption: The Company has applied the exemption as provided in Ind AS 101 on no application of Ind AS 103, “Business Combinations” to business combinations consummated prior to the date of transition (April 1, 2015). Pursuant to this exemption, goodwill arising from business combination has been stated at the carrying amount under Previous GAAP.

- Share-based payment exemption: The Company has elected to apply the share based payment exemption available under Ind AS 101 on application of Ind AS 102, “Share Based Payment”, to grants which remain unvested on April 1, 2015.

- Property, Plant and Equipment; and intangibles exemption: The Company has elected to apply the exemption available under Ind AS 101 to continue the carrying value for all of its property, plant and equipment and intangibles as recognized in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition (April 1, 2015).

ii) Reconciliations: The following reconciliations provide a quantification of the effect of significant differences arising from the transition from Previous GAAP to Ind AS in accordance with Ind AS 101:

- equity as at April 1, 2015;

- equity as at March 31, 2016; and

- total comprehensive income for the year ended March 31, 2016.

(a) Balances with Banks in current accounts include INR 0.05 Crore (Previous Year 2016: INR 0.05 Crore, Previous Year 2015: INR 0.04 crore) is on account of earmarked balance for unclaimed dividend.

(b) Include

(i) INR 3.15 Crore (Previous Year 2016: INR 3.14 Crore; Previous Year 2015: INR 3.80 Crore) received from flat buyers and held in trust on their behalf in a corpus fund

(ii) Deposits held as Deposit Repayment Reserve amounting to INR 1.15 Crore (Previous Year 2016: INR 31 Crore; Previous Year 2015: INR22 Crore)

(iii) Fixed deposits held as margin money and lien marked for issuing bank guarantee amounting to INR 4.03 Crore (PreviousYear2016: INR0.15Crore; PreviousYear2015: INR0.13Crore)

f) Rights, preferences and restrictions attached to Equity shares

The Company has only one class of equity share having a par value of INR 5/- per share. Each holder of equity shares is entitled to one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the Shareholders in the Annual General Meeting except in case of interim dividend. In the event of liquidation, the shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

(i) Capital Reserve

Capital Reserve is created on Sale of Treasury Shares.

(ii) Capital Reserve on account of Amalgamation Capital Reserve is created on account of Amalgamation.

(iii) Securities Premium

The Securities Premium account has been created mainly on account of premium on issue of Equity shares.

(iv) Employee Stock Grant Scheme Reserve

The Company has employee stock grant scheme under which options to subscribe to the Company''s shares have been granted to certain employees of the Company. The share based payment reserve is used to recognise the value of equity settled share based payments provided to employees, including key management personnel, as part of their remuneration.

(v) Treasury Shares

The reserve for treasury shares of the Company includes the shares held by the ESOP trust considered as a branch of the Company. As at March 31, 2017 the Trust held Nil number of shares of the Company and 987,510 shares as at March 31,2016.

(a) Loans Repayable on Demand on account of Cash Credit availed from Bank and is secured by hypothecation of the Current Assets of the Company, mortgage of Immovable property of the Company at Unit No 5C, on the 5th Floor in Godrej One (along with car parking spaces) at Pirojshanagar, Vikhroli East, Mumbai and hypothecation of Current Assets of Godrej Real Estate Private Limited and Godrej Projects Development Private Limited (both wholly owned subsidiaries) is provided as collateral security. It carries interest at 1 Year Marginal Cost of Fund Based Lending Rate (MCLR) 0.35% p.a. Present effective rate 9.55 % p.a.

(b) Term Loan from Bank includes :

(i) Secured Working Capital Demand Loan of INR 400 Crore availed from Bank secured by hypothecation of Current Assets of the Company, mortgage of Immovable property of the Company at Unit No 5C, on the 5th Floor in Godrej One (along with car parking spaces) at Pirojshanagar, Vikhroli East, Mumbai and hypothecation of Current Assets of Godrej Real Estate Private Limited and Godrej Projects Development Private Limited (both wholly owned subsidiaries) is provided as collateral security and carries interest rate at 8.00% p.a.(Fixed) repayable on April 26, 2017.

(ii) Secured Working Capital Demand Loan of INR 100 Crore availed from Bank secured by Mortgage of Immovable property of the Company at Unit No 5C, on the 5th Floor in Godrej One (along with car parking spaces) at Pirojshanagar, Vikhroli East, Mumbai and hypothecation of Current Assets of Godrej Real Estate Private Limited and Godrej Projects Development Private Limited (both wholly owned subsidiaries) is provided as collateral security and carries interest rate at 8.00% p.a.(Fixed) repayable on April 15, 2017.

(iii) Secured Working Capital Demand Loan of INR 100 Crore availed from Bank secured by Mortgage of Immovable property of the Company at Unit No 5C, on the 5th Floor in Godrej One (along with car parking spaces) at Pirojshanagar, Vikhroli East, Mumbai and hypothecation of Current Assets of Godrej Real Estate Private Limited and Godrej Projects Development Private Limited (both wholly owned subsidiaries) is provided as collateral security and carries interest rate at 8.00% p.a.(Fixed) repayable on April 19, 2017.

(iv) Secured Working Capital Demand Loan of INR 100 Crore availed from Bank secured by Mortgage of Immovable property of the Company at Unit No 5C, on the 5th Floor in Godrej One (along with car parking spaces) at Pirojshanagar, Vikhroli East, Mumbai and hypothecation of Current Assets of Godrej Real Estate Private Limited and Godrej Projects Development Private Limited (both wholly owned subsidiaries) is provided as collateral security and carries interest rate at 8.00% p.a.(Fixed) repayable on April 9, 2017.

(v) Secured Working Capital Demand Loan of INR 100 Crore availed from Bank secured by Mortgage of Immovable property of the Company at Unit No 5C, on the 5th Floor in Godrej One (along with car parking spaces) at Pirojshanagar, Vikhroli East, Mumbai and hypothecation of Current Assets of Godrej Real Estate Private Limited and Godrej Projects Development Private Limited (both wholly owned subsidiaries) is provided as collateral security and carries interest rate at 8.00% p.a.(Fixed) repayable on April 13, 2017.

(c) Loans Repayable on Demand includes:

(i) Over Draft facility amounting to INR 248.12 Crore carries interest at 1 Month MCLR 20 basis point. Present effective rate is 8.10% p.a.

(ii) INR 6.17 Crore of Overdraft carries interest at Base Rate. Present effective rate is 9.50% p.a.

(iii) INR 0.26 Crore of Over Draft facility carries interest at 1 Month MCLR 100 basis point p.a. Present effective rate is 9.15% p.a.

(d) Other Unsecured loans includes:

(i) Short Term Loan amounting to INR 150 Crore carrying interest at 1 Month MCLR 10 basis point p.a. Present effective rate is 8.00% p.a. Out of the above INR 75 crore is repayable on September 20, 2017 and INR75 crore is repayable on September 25, 2017.

(ii) Short Term Loan amounting to INR 100 Crore carrying interest at 3 Month MCLR. Present effective rate is 8.75 % p.a. repayable on January 12, 2018.

(iii) Short Term Loan amounting to INR 250 Crore. Out of above INR 50 Crore carries interest at 6 Month MCLR 02 basis point p.a. Present effective rate is 7.97% p.a and INR 50 Crore, INR 75 Crore & INR 75 Crore carries interest at 3 Month MCLR. Present effective rate is 7.90% p.a., repayable on May 24, 2017, August 09, 2017, August 21, 2017 & August 25, 2017 respectively.

(iv) INR 100 Crore availed from Commercial Papers carries interest at 6.58% p.a., repayable on May 19, 2017.

(v) INR 75 Crore availed from Commercial Papers carries interest at 6.58% p.a., repayable on May 26, 2017.

(vi) INR 80 Crore availed from Commercial Papers carries interest at 6.80% p.a., repayable on June 20, 2017.

(vii) INR 80 Crore availed from Commercial Papers carries interest at 6.80% p.a., repayable on June 23, 2017.

(viii) INR 75 Crore availed from Commercial Papers carries interest at 6.80% p.a., repayable on May 4, 2017.

(ix) INR 75 Crore availed from Commercial Papers carries interest at 6.80% p.a., repayable on May 8, 2017.

(x) INR 40 Crore availed from Commercial Papers carries interest at 6.80% p.a., repayable on May 9, 2017.

(xi) INR 80 Crore availed from Commercial Papers carries interest at 6.50% p.a., repayable on June 29, 2017.

(xii) INR 35 Crore availed from Commercial Papers carries interest at 6.87% p.a., repayable on May 9, 2017.

(xiii) INR 60 Crore availed from Commercial Papers carries interest at 6.87% p.a., repayable on May 12, 2017.

(xiv) INR 70 Crore availed from Commercial Papers carries interest at 6.87.% p.a., repayable on May 15, 2017.

(xv) INR 70 Crore availed from Commercial Papers carries interest at 6.87.% p.a., repayable on May 17, 2017.

(xvi) INR 10 Crore availed from Commercial Papers carries interest at 6.87.% p.a., repayable on May 17, 2017.

(xvii) INR 75 Crore availed from Commercial Papers carries interest at 6.69.% p.a., repayable on May 31, 2017.

(xviii) INR 75 Crore availed from Commercial Papers carries interest at 6.51.% p.a., repayable on June 05, 2017.

(xix) INR 85 Crore availed from Commercial Papers carries interest at 6.51.% p.a., repayable on June 07, 2017.

(xx) INR 70 Crore availed from Commercial Papers carries interest at 6.55.% p.a., repayable on June 14, 2017.

(xxi) INR 70 Crore availed from Commercial Papers carries interest at 6.55.% p.a., repayable on June 16, 2017.

(xxii) INR 25 Crore availed from Commercial Papers carries interest at 6.50.% p.a., repayable on June 28, 2017.

(xxiii) Short Term Loan amounting to INR 125 Crore is availed at rate of Interest 8.30 % p.a.(Fixed) repayable on September 5, 2017.

(xxiv) Short Term Loan amounting to INR 125 Crore is availed at rate of Interest 8.30 % p.a.(Fixed) repayable on August 30, 2017.

b) Denned Benefit Plans:

Contribution to Gratuity Fund

Gratuity is payable to all eligible employees on death or on separation/ termination in terms of the provisions of the Payment of Gratuity Act or as per the Company''s policy whichever is beneficial to the employees.

The estimates of future salary increases, considered in actuarial valuation, takes into account inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

b) Measurement of Fair Value

The Company uses the Discounted Cash Flow valuation technique (in relation to Fair Value of asset measured at amortized cost) which involves determination of present value of expected receipt/ payment discounted using appropriate discounting rates. The fair value so determined are classified as Level 2.

c) Risk Management Framework

The Company''s Board of Directors have overall responsibility for the establishment and oversight of the Company''s risk management framework. The Board of Directors have established the Risk Management Committee, which is responsible for developing and monitoring the Company''s risk management policies. The committee reports regularly to the Board of Directors on its activities.

The Company''s risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company''s activities. The Company, through its training and management standards and procedures, aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations.

The Audit Committee oversees how management monitors compliance with the company''s risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Company. The Audit Committee is assisted in its oversight role by internal audit. Internal audit undertakes both regular and adhoc reviews of risk management controls and procedures, the results of which are reported to the Audit Committee.

d) Financial Risk Management

The Company has exposure to the following risks arising from financial instruments:

(i) Credit Risk

(ii) Liquidity Risk

(iii) Market Risk.

(i) Credit Risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company''s receivables from customers, investments in debt securities, loans given to related parties and project deposits.

The carrying amount of financial assets represents the maximum credit exposure.

Trade Receivables

Customer credit risk is managed by requiring customers to pay advances through progress billings before transfer of ownership, therefore substantially eliminating the Company''s credit risk in this respect.

The Company''s credit risk with regard to trade receivable has a high degree of risk diversification, due to the large number of projects of varying sizes and types with numerous different customer categories in a large number of geographical markets.

Based on prior experience and an assessment of the current economic environment, management believes there is no credit risk provision required. Also the Company does not have any significant concentration of credit risk.

The amounts reflected in the table above are not impaired as on the reporting date.

Investment in Debt Securities, Loans to Related Parties and Project Deposits

The Company has investments in compulsorily convertible debentures / optionally convertible debentures, loans to related parties and project deposits. The settlement of such instruments is linked to the completion of the respective underlying projects. Such Financial Assets are not impaired as on the reporting date.

Cash and Bank balances

Credit risk from Cash and Bank balances is managed by the Company''s treasury department in accordance with the company''s policy.

(ii) Liquidity Risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company''s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company''s reputation.

Management monitors rolling forecasts of the Company''s liquidity position on the basis of expected cash flows. This monitoring includes financial ratios and takes into account the accessibility of cash and cash equivalents.

The company has access to funds from debt markets through bank loan, commercial papers, fixed deposits from public and other debt instruments. The Company invests its surplus funds in bank fixed deposit and debt based mutual funds.

b) Interest Rate Risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The management is responsible for the monitoring of the Company''s interest rate position. Various variables are considered by the management in structuring the Company''s borrowings to achieve a reasonable, competitive, cost of funding.

Fair value sensitivity analysis for fixed rate instruments

The Company does not account for any fixed rate financial assets and liabilities at fair value through profit or loss. Therefore, a change in interest rates at the reporting date would not affect profit or loss.

Cash flow sensitivity analysis for variable rate instruments

A reasonably possible change of 100 basis points in interest rate would have resulted in variation in the interest expense for the Company by the amounts indicated in the table below. Given that the Company capitalizes interest to the cost of inventory to the extent permissible, the amounts indicated below may have an impact on reported profits over the life cycle of projects to which such interest is capitalized. This calculation also assumes that the change occurs at the balance sheet date and has been calculated based on risk exposures outstanding as at that date. The year end balances are not necessarily representative of the average debt outstanding during the period.

The Company does not have any additional impact on equity other than the impact on retained earnings.

Note 38 Capital Management

The Company''s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of the business.

The Board of Directors seeks to maintain a balance between the higher returns that might be possible with higher levels of borrowings and the advantages by a sound capital position.

The Company monitors capital using a ratio of ‘Net Debt'' to ‘Equity’. For this purpose, net debt is defined as total borrowings and put option liability less Cash & Bank Balances and Other Current Investments.

Note 39 Employee Stock Option Plan

During the financial year ended March 31,2008, 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 885,400 options convertible into 885,400 Equity Shares of INR 5/- each to eligible employees of Godrej Properties Limited and its Subsidiary Companies (the Participating Companies) with effect from December 28, 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.

The exercise period of the GPL ESOP has expired on December 27, 2016 and consequently all the unexercised options were rendered lapsed. The GPL ESOP now stands terminated and the shares held by the Trust have been sold during the year.

b) The weighted average exercise price of the options outstanding as at March 31, 2017 is INR 5 (Previous year 2016: INR

5 per share, Previous Year 2015: INR 5 per share) and the weighted average remaining contractual life of the options outstanding as at March 31, 2017 is 0.89 years (Previous year 2016: 0.89 years; Previous Year 2015: 0.85 years).

c) The fair value of the employee share options has been measured using the Black-Scholes Option Pricing Model. The weighted average fair value of the options granted is INR 279.78 (Previous year 2016: INR 234.68). The following table lists the average inputs to the model used for the plan for the year ended March 31, 2017:

d) The expense arising from ESGS scheme during the year is INR 2.49 Crore ( Previous Year 2016: INR 2.98 Crore)

Note 42 Amalgamation

Amalgamation of Happy High-rises Limited (HHL) with Godrej Properties Limited (GPL):

Pursuant to the Scheme of Amalgamation (the Scheme) under Sections 391 to 394 of the Companies Act, 1956 read with section 230 to 240 of the Companies Act, 2013 sanctioned by the National Company Law Tribunal at Mumbai Bench on March 29, 2017 and filed with the Registrar of Companies (RoC) on April 24, 2017, Happy High-rises Limited (HHL), a 100% Subsidiary of Godrej Properties Limited (GPL), is amalgamated with GPL w.e.f. May 1, 2016, the Appointed Date.

As per the said Scheme;

(i) All the assets and liabilities as appearing in the books of HHL as on the Appointed Date have been recorded in the books of GPL at their respective book values and inter-company balances have been cancelled.

(ii) The amount of INR 31.87 crore arising out of the difference between the book value of the net assets of the Transferor Company taken over and cancellation of intercompany investments between the Transferor Company and the Transferee Company has been considered as capital reserve in the Separate financial statements of GPL.

(iii) GPL has incurred additional expenses such as charges, taxes including duties, levies and other expenses of INR 0.35 crore which have been charged to the Statement of Profit & Loss.

II) The Company enters into construction contracts for Civil, Elevator, External Development, MEP work etc. with its vendors. The total amount payable under such contracts will be based on actual measurements and negotiated rates, which are determinable as and when the work under the said contracts are completed.

III) The Company has entered into development agreements with owners of land for development of projects. Under the agreements the Company is required to pay certain payments/ deposits to the owners of the land and share in built up area/ revenue from such developments in exchange of undivided share in land as stipulated under the agreements.

Note 44 Dues to Micro and Small Enterprise

Disclosure of trade payables and other liabilities is based on the information available with the Company regarding the status of the suppliers as defined under the “Micro, Small & Medium Enterprises Development Act, 2006”. There is no amount overdue to Micro & Small Enterprises on account of principal amount together with interest.

The above amounts are net of applicable taxes.

Note 46 Foreign Exchange Difference

The amount of exchange difference included in the Statement of Profit and Loss, is INR 0.01 Crore (Net Loss) (Previous Year 2016: INR 0.01 Crore (Net Gain)).

Note 47 Corporate Social Responsibility

The Company has spent INR 1.29 Crore during the financial year( Previous Year: INR 2.18 Crore) as per the provisions of Section 135 of the Companies Act, 2013 towards Corporate Social Responsibility (CSR) activities grouped under ‘Other Expenses''.

a) Gross amount required to be spent by the company during the year INR 1.29 Crore.

The total amount spent by the amalgamating Company (Happy High-rises Limited) during the year amounted to INR 0.33 Crore (PreviousYear2016: Nil) out of which INR 0.22 Crore (Previous Year 2016: Nil) was yet to be paid in cash.

Note 48 Related Party Disclosures

1. List of Related Parties as required by Ind AS - 24, “Related Party Disclosures”, are given below:

i) Shareholders (Holding Company)

Godrej Industries Limited (GIL) holds 56.70% (Previous Year 2016: 56.73%) shares in the Company.

GIL is the subsidiary of Vora Soaps Limited, the Ultimate Holding Company w.e.f. March 30, 2017.( Godrej & Boyce Manufacturing Company Limited (G&B), was the Ultimate Holding Company up to March 29, 2017)

ii) Subsidiaries Companies:

1 Godrej Real Estate Private Limited (100%)

2 Godrej Build on Private Limited (100%)

3 Godrej Projects Development Private Limited (100%)

4 Godrej Garden City Properties Private Limited (100%)

5 Godrej Green Homes Limited (100%)

6 Godrej Home Developers Private Limited (100%)

7 Godrej Hillside Properties Private Limited (100%)

8 Godrej Investment Advisers Private Limited (100%)

9 Godrej Prakriti Facilities Private Limited (100%)

10 Godrej Highrises Properties Private Limited (100%)

11 Godrej Genesis Facilities Management Private Limited (100%)

12 Prakritiplaza Facilities Management Private Limited (100%)(w.e.f. July 28, 2016)

13 GodrejFundManagementPte. Limited (100%)(Sub Subsidiary)

14 Godrej Vikhroli Properties India Limited (w.e.f January 25, 2017) formerly known as Godrej Vikhroli Properties LLP (upto January 24,2017)

15 Godrej Residency Private Limited (w.e.f March 16, 2017)

16 Wonder Projects Development Private Limited (Upto September 18,2016)

17 Godrej Greenview Housing Private Limited (Upto June 29, 2016)

18 Godrej Skyline Developers Private Limited (100%) (w.e.f November 22, 2016)

19 Godrej Real View Developers Private Limited (20%) (w.e.f September 1, 2016 till March 28, 2017)

20 Pearlite Real Properties Private Limited (49%) (w.e.f September 2, 2016 upto March 29, 2017)

21 Citystar Infraprojects Limited (w.e.f January 12, 2017)

Subsidiaries-Limited Liability Partnerships:

1 Godrej Vikhroli Properties LLP (up to Janurary 24, 2017)

2 Godrej Highrises Realty LLP

3 Godrej Land Developers LLP

4 Godrej Developers & Properties LLP

5 Godrej Project Developers & Properties LLP

6 Godrej Highview LLP (w.e.f. September 29, 2016)

7 Godrej Skyview LLP (100%) (w.e.f October 19, 2016)

8 Godrej Green Properties LLP 100% (w.e.f October 27, 2016)

9 Godrej Projects (Pune) LLP (w.e.f February 5, 2017)

10 Godrej Projects (Soma) LLP(w.e,f March 6, 2017)

11 Godrej Projects (Bluejay) LLP (w.e.f March 2, 2017)

12 Godrej Century LLP( w.e.f March 14,2017)

iii) Associate and Joint Ventures :

1 Godrej Realty Private Limited (51%)

2 Godrej Landmark Redevelopers Private Limited (51%)

3 Godrej Redevelopers(Mumbai) Private Limited. (51%)

4 Mosiac Landmarks LLP (1%)

5 Dream World Landmarks LLP (40%)

6 Oxford Realty LLP (35%)

7 Godrej SSPDL Green Acres LLP (37%)

8 Caroa Properties LLP (35%)

9 MS Ramaiah Ventures LLP (49.5%)

10 Oasis Landmarks LLP (38%)

11 Amitis Developers LLP (46%)

12 Godrej Construction Projects LLP (34%)

13 Godrej Housing Projects LLP (50%)

14 Godrej Greenview Housing Private Limited (20%) (w.e.f June 30, 2016)

15 Wonder Space Properties Private Limited (25.1%)

16 Wonder City Build on Private Limited (25.1%)

17 Godrej Home Construction Private Limited (25.1%)

18 WonderProjectsDevelopmentPrivateLimited(20%) (w.e.f Septemer19,2016)

19 Godrej Property Developers LLP (32%)

20 Godrej One Premises Management Private Limited (30%)

21 Godrej Real View Developers Private Limited (20%) (w.e.f March 29, 2017)

22 Pearlite Real Properties Private Limited (49%) (w.e.f March 30, 2017)

23 Bavdhan Realty @ Pune 21 LLP (45%)(w.e.f October 26, 2016)

24 Prakhhyat Dwellings LLP (42.50%) (w.e.f September 2, 2016)

25 AR Landcraft LLP (40%) (w.e.f June 7, 2016)

iv) Other Related Parties in Group:

1 Godrej Investments Private Limited

2 Annamudi Real Estates LLP

3 Ensemble Holdings & Finance Limited

4 Godrej Agrovet Limited

5 Natures Basket Limited

6 Cream Line Dairy Products Limited

v) Key Management Personnel & Others :

1 Mr. A. B. Godrej

2 Mr. N.B. Godrej

3 Mr. Pirojsha Godrej

4 Mr. Mohit Malhotra

5 Ms. Parmeshwar Adi Godrej (Upto October 10, 2016)

6 Mr. Jamshyd N. Godrej

7 Mr. Amit Choudhury

8 Mr. K. B. Dadiseth

9 Mrs. Lalita Gupte

10 Mr.PranayVakil

11 Dr. Pritam Singh

12 Mr.S.Narayan

13 Mr.AmitavaMukherjee

Note 49 Segment reporting

As per the requirements of Ind AS 108 on “Operating Segments”, segment information has been provided under the Notes to Consolidated Financial Statements.

Note 50 First Time Adoption of Ind AS

These are the Company''s first financial statements prepared in accordance with Ind AS.

The Company''s opening Ind AS balance sheet was prepared as at April 1, 2015, the Company''s date of transition to Ind AS. In preparing the opening balance sheet, the Company has applied the mandatory exceptions and certain optional exemptions from full retrospective application of Ind AS in accordance with the guidance in Ind AS 101 ‘First Time Adoption of Indian Accounting Standards''.

This note explains the principal adjustments made by the Company in restating its Indian GAAP (IGAAP) financial statements to Ind AS, in the opening balance sheet as at April 1, 2015 and in the financial statements as at and for the year ended as at March 31,2016.

Note: (a) Obligation to acquire non controlling interest in a subsidiary (Put Option)

The Company has granted put option to non controlling interests in one of its subsidiary, which gives the investor a right to sell their interests at guaranteed return to the Company on agreed terms. On transition to Ind AS, such put option has been classified as a financial liability payable to the investor and is re-measured at each reporting date and the difference is adjusted in equity.

(b) Inventories

The Company has undertaken a detailed exercise to determine the manner of expense allocation to inventory in context the of the requirements of Ind AS and accordingly have realigned allocation of expenses to project inventory.

(c) Proposed Dividend

Proposed dividend recognized under Indian GAAP has been derecognized under Ind AS. Under Ind AS, dividend on equity shares is recognized on receipt of approval from the relevant authority.

(d) Employee Benefits

Under Ind AS, the ESOP Trust is consolidated in the Company''s Separate Financial Statements as the ESOP Trust was established by the Company for the administration of Employee Stock Option Plan of the Company. The Trust is merely acting as a Branch of the Company.

(e) Financial instruments

Under Indian GAAP, investments in mutual funds were measured at lower of cost or market value while under Ind AS, such investments are required to be measured at fair value with the resultant gain or loss being recognized in profit or loss.

Under Ind AS, investments in debentures instruments are required to be measured at amortised cost with interest income determined with reference to the effective interest rate.

(f) Deferred Taxes

Under Ind AS, deferred tax on account of fair value adjustment in relation to past schemes of amalgamation and on other Ind AS differences has been appropriately recognized.

Source :
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.