1.1 Capital Commitments:
Estimated amount of contracts remaining to the executed on Capital
account (net of advances) Rs. 5,16,81,364/- (Previous year Rs.
1.2 Contingent liability in respect of:
(a) Property Tax - Rs. 78,21,151/- (Previous year Rs. 78,21,151/-)
The total demand raised by MCD was Rs. 83,85,604/-(Previous Year Rs.
83,85,604/-). Against this, the company deposited the admitted
liability of Rs. 5,64,453/-(Previous Year Rs. 5,64,453/-). For the balance
amount of Rs. 78, 21,151/- the company had filed a Writ Petition before
the Hon''ble Delhi High Court. The company had also filed a stay
petition before the Hon''ble High Court praying for stay for the payment
of aforesaid amount of Rs. 78,21,151/-. As per direction of Hon''ble Court
the company paid a sum of Rs. 10,18,477/-against the aforesaid demand and
for the balance amount the company had been granted stay. The Hon''ble
High Court directed MCD to re-compute the tax. In the opinion of
management the demand raised by MCD is not sustainable and no further
liability will arise and therefore the aforesaid amount of Rs.
10,18,477/- paid by the company is being shown as recoverable in the
Balance Sheet under the head Short Term Loans & Advances.
(b) Income tax demand for which rectification/appeal has been filed
with the appropriate authorities- Rs. 5,59,190/-(previous year Rs.
(c) Letter of Credit/Bank guarantee issued by bank Rs. 10,82,69,455/-
(previous year Rs. 10,07,71,455/-).
(d) The company had received a show cause notice dated 17.11.2006 from
Delhi Development Authority (DDA) demanding a sum of Rs. 258.68 Lacs
(Excluding un determined interest) on account of ground rent in respect
of its property at Plot No. A-2, 3 & 4 in District Centre, Wazirpur,
Delhi upto the period 14th July 2006. Aggrieved by show cause notice
issued by DDA, the company filed a writ petition in the Hon''ble High
Court of Delhi Challenging the aforesaid demand. The Hon''ble High
Court, vide its order dated 4th December 2006 set-aside the matter to
DDA for reconsideration. DDA vide Notice dated 12.01.2010 demanded a
sum of Rs. 398.46 lacs (excluding interest) towards ground rent upto the
period 14.07.2010. Aggrieved by the said demand, the company again
filed a writ petition in the Hon''ble High Court of Delhi which vide its
order dated 31.05.2010 stayed the operations of the order of DDA
subject to company depositing a sum of Rs. 100 Lacs. As per the direction
of Hon''ble high court, the company has deposited the said amount of Rs.
100 lacs on 10.06.2010.
The matter is pending for final disposal by the Hon''ble Court. The
liability will be determined only after the disposal of matter by the
Hon''ble High Court of Delhi ; and therefore at this stage, in the
opinion of management any further provision is neither considered
necessary nor ascertainable. The effect of any arrear/excess amount
will be taken after the decision of the Hon''ble Court.
(e) Claim against the company not acknowledged as debt Rs. 2,77,55,293/-
(Previous Year Rs. Nil).
1.3 Related Party Transactions:
Related party disclosures
As per Accounting Standard (AS-18) on Related Party Disclosures, the
disclosure of transactions with the related party as defined in the
Accounting Standard are given below:- 29.4 List of Related parties with
whom transactions have taken place and relationship :
(a) Key Managerial Personnel (i) Mr. Praveen Gupta
(b) Person having significant influence/control/major shareholders (i)
Sh. Lalit Bhasin
(c) Enterprises over which significant influence/control exist of the
relatives of persons mentioned in (b) above
(i) RRB Master Securities Delhi Ltd.
(d) Enterprises under direct or indirect common control/significant
influence (i) HB Stockholdings Ltd.
(ii) HB Portfolio Ltd.
(iii) HB Securities Ltd.(Subsidary of HB Portfolio Ltd.)
(iv) HB Leasing & Finance Co Ltd.
(v) RRB Securities Ltd.
(vi) RRB Masterholdings Ltd.(Subsidary of RRB Securities Ltd.)
(e) Enterprises under Joint ventures/Assocaite Company (i) Parsvnath
(ii) Parsvnath HB Projects Pvt. Ltd.-Associate
1.4(c) Disclosure in respect of outstanding balance of related party
(i) Short Term borrowing includes loan taken from HB Portfolio Ltd. Rs.
9,00,00,000/- (previous year Rs. 9,00,00,000/-); Interest accrued but not
due thereon Rs. 48,46,685/- (previous year Rs. 23,96,712/-). (ii) Security
Deposits received includes Rs. 3,45,00,000/-(previous year Rs.
3,45,00,000/-) from HB Stockholdings Ltd.; Rs. 3,45,00,000/- (previous
year Rs. 3,45,00,000/-) from HB Portfolio Ltd.; Rs. 1,15,00,000/-(previous
year Rs. 1,15,00,000/-) from HB Leasing & Finance Co. Ltd.; Rs.
57,00,000/-(previous year Rs. 57,00,000/-) from RRB Securities Ltd. and Rs.
1,42,485/-(previous year Rs. 1,42,485/-) from RRB Master Securities Delhi
Ltd. (iii) Short term Loan and advances includes Rs. 1,08,94,884/-
(Previous Year Rs. Nil/-) from Parsvnath HB Projects Pvt. Ltd.
1.5 (a) The Company had entered into an agreement with a party namely
M/s Parsvnath Developers Ltd. for undertaking Real Estate development
projects. The agreement had been made by way of Association of Persons
(AOP) under the name and style of Parsvnath Developers (AOP)”. Under
the Agreement, the said AOP had taken up a real estate project at
Mohali.During the year, the entire business of AOP has been transferred
as a going concern to Parsvnath HB Projects Private Limited (hereafter
referred as the ''new company'') and the AOP has been wound up w.e.f.
31st December 2012. The company has acquired 49% equity shares in the
new company and the remaining 51% has been acquired by M/s Parsvnath
Developers Ltd. As on the date of winding up, the investments of
company Rs. 35,32,13,269/- in the AOP was transferred to /taken over as
payable by new company. After 31st December 2012 out of the aforesaid
amount of Rs. 35,32,13,269/- an amount of Rs. 35,00,00,000/- has been
recovered and at the year end only Rs. 1,08,94,884/- (including interest)
b) The company''s share of Loss amounting to Rs. 8,30,466/- for the year
up to the date of winding up (previous year Loss Rs. 1,58,666/-) from the
aforesaid AOP is based on separate financial statements of AOP. The
brief breakup of share of profit/(loss) is as under:
1.6 The Board of directors of the company has approved the
amalgamation of a company Pisces Portfolio Private Limited with the
company w.e.f. the appointed date i.e 1st April 2012. These financial
statements are on standalone basis and do not include the figures of
Pisces Portfolio Private Limited as the scheme of amalgamation is
subject to various statutory approvals.
1.7 Previous year figures have been regrouped/reclassified wherever
necessary to confirm the current year presentaion.