Housing Development and Infrastructure

1.  Related party disclosure
 
 A.  List of related parties with whom transactions have taken place
 during the current accounting period and relationship:
 
 Subsidiaries
 
 Privilege Power and Infrastructure Private Limited HDIL Entertainment
 Private Limited Blue Star Realtors Private Limited Ravijyot Finance &
 Leasing Private Limited HDIL Oil & Gas Private Limited Excel Arcade
 Private Limited Mazda Estate Private Limited HDIL Leisure Private
 Limited
 
 Associates
 
 Enterprise significantly infiuenced by key management personnel
 
 Privilege Airways Private Limited
 
 Privilege Industries Limited
 
 Guruashish Construction Private Limited
 
 Joint Venture
 
 D. S. Corporation
 
 Fine Developers
 
 Mahul Construction Corporation
 
 2.  The Company has adopted Accounting Standard 15 (Revised 2005) -
 Employee benefits ( AS-15). Pursuant to adoption, the Company has
 determined the liability for gratuity and leave encashment in
 accordance with revised AS - 15.
 
 A) Gratuity Plan:
 
 I) The AS-15 (Revised 2005) stipulates that the rate used to discount
 post employment benefit obligation (both funded and non-funded) should
 be determined by reference to market yields at the balance sheet date
 on government bonds. The currency and terms of the government bonds
 should be consistent with the currency and estimated terms of the
 post-employment benefit obligation.
 
 II) Estimated future salary increases take account of inflation,
 seniority, promotion and other retirement factors, such as supply and
 demand in the employment market.
 
 The following table set out the status of the gratuity plan as required
 under AS - 15.
 
 B) Leave encashment liability:
 
 I) The AS-15 (Revised 2005) stipulates that the rate used to discount
 post employment benefit obligation (both funded and non-funded) should
 be determined by reference to market yields at the balance sheet date
 on government bonds. The currency and terms of the government bonds
 should be consistent with the currency and estimated terms of the
 post-employment benefit obligation.
 
 II) Estimated future salary increases take account of inflation,
 seniority, promotion and other retirement factors, such as supply and
 demand in the employment market.
 
 a) Reconciliation of opening and closing balance of the present value
 of the defined benefit obligation:
 
 3.  Licensed capacity, installed capacity, etc.
 
 With regard to clause 3(ii) of Part II of Schedule VI to the Companies
 Act, 1956, the Company is of the view that in respect of its real
 estate operations, the Company does not fall under the category of
 clause 3(ii)(a) “Manufacturing Company” or clause 3(ii)(b) “Trading
 Company” or clause 3(ii)(c) “Company rendering or supplying services”,
 but falls under the category of “Other Companies” as given in clause
 3(ii)(e). As such, quantitative data for opening stock, purchases and
 closing stock have not been given.
 
 4.  In the case of acquisition of land for development and
 construction, the rights are acquired from the owners of the land and
 the conveyance and registration thereof will be executed between the
 original owners and the ultimate purchasers as per trade practice.
 
 5.  In the opinion of the management, the current assets and loans and
 advances are not less than as stated, if realized in the ordinary
 course of business.
 
 6.  Loan funds:
 
 A) Secured loans: -
 
 I) Term Loans: -
 
 a) Indian Overseas Bank:
 
 (i) Secured by pari passu charge by mortgage/charge-cum-hypothecation
 of the project assets of the borrower. (Description of the project:
 borrower has development rights to construct (a) a multi-storeyed mall
 on the portion of land admeasuring 28465.78 sq. mtr. in village
 Bhandup, Mumbai) Project assets (I) include the following. (1)
 Borrower’s share of sale area to be constructed together with the
 undivided pro rata right, interest, title of the borrower in the land
 underneath comprising saleable area of 400000 sq. ft. in the mall and
 250000 sq. ft. in the basement parking lot. (2) Construction material
 brought at site for the purpose of construction of the building. (3)
 Receivables, which may be generated from the booking of, free sale area
 from time to time. Rate of Interest is BPLR + 0.50% p.a. or 11.50% p.a.
 whichever is higher (Amount repayable within next twelve months
 exclusive of interest Rs. 1,000.00 lacs)
 
 (ii) Secured by 1st pari passu charge on free sale area constructed /to
 be constructed together with undivided pro rata right, interest of the
 Company in land underneath being the Company’s slum rehabilitation
 scheme at Sambhaji Nagar as well as the right of sale/utilization of
 transferable development rights generated from said scheme,
 hypothecation of movable at the construction site and book debts. Rate
 of Interest is BPLR - 0.25% p.a. or 10.75% p.a. whichever is higher
 (Amount repayable within next twelve months exclusive of interest Rs.
 2,222.16 lacs).
 
 b) Syndicate Bank:
 
 Registered mortgage of non agriculture land admeasuring about 211674
 sq. ft. at CTS No.1A-58, containing plot nos. D/1,D/1-A, D2 and D3 of
 Village Pahadi, Goregaon (West), Mumbai, into shopping complex known as
 “The Harmony” together with all buildings, structures, erections,
 godowns and construction of every description which are standing,
 erected or attached. Rate of Interest is PLR in force. (Amount
 repayable within next twelve months exclusive of interest Rs. 364.44
 lacs).
 
 c) Indian Bank:
 
 First pari passu charge by mortgage/charge-cum-hypothecation of the
 project assets of the borrower.  (Description of the project: borrower
 has development rights to construct a multi-storeyed mall on the
 portion of land admeasuring 28465.78 sq. mtr. in village Bhandup,
 Mumbai). Project assets include the following.  (1) Borrowers share of
 sale area to be constructed together with the undivided pro rata right,
 interest, title of the borrower in the land underneath comprising
 saleable area of 400000 sq. ft. in the mall and 250000 sq. ft. in the
 basement parking lot. (2) Construction material brought at site for the
 purpose of construction of the building.  (3) Receivables which may be
 generated from the booking of free sale area from time to time. Rate of
 Interest BPLR +TP - 0.50% p.a. (Amount repayable within next twelve
 months exclusive of interest Rs. 665.13 lacs).
 
 d) Bank of India:
 
 (i) Secured by registered mortgage of free sale component to be
 generated on the piece and parcel of land bearing survey no. 236A and
 194 (pt) admeasuring about 18199.08 sq. mtr. on the property situated
 at Ghatkopar (East) together with buildings constructed or to be
 constructed thereon. The term loan repayable in 48 equal monthly
 installments of Rs. 208.35 lacs commencing from April 2011. The rate of
 interest is BPLR + 0.75% p.a. (Amount repayable within next twelve
 months exclusive of interest Rs. Nil).
 
 (ii) The other term loan secured by hypothecation of construction
 materials and other movable assets as well as all receivables of
 Airport Slum Rehabilitation Project. Repayable in 4 quarterly
 instalments of Rs. 5,000.00 lacs after moratorium of two years from
 first disbursement. Interest rate is BPLR. (Amount repayable within
 next twelve months exclusive of interest Rs. Nil).
 
 e) Indian Corporate Loan Securitisation Trust - Series LVI:
 
 Working capital term loan secured by pari passu charge on the land
 admeasuring 28465.78 sq. mtrs. and exclusive charge on 2nd & 3rd floor
 of the structure standing thereon of the project Dreams Mall at village
 Bhandup, Mumbai. Rate of interest 13.50% p.a. payable monthly.
 Repayment by two equal installments at the end of the 16th and 18th
 month from the date of disbursement. (Amount repayable within next
 twelve months exclusive of interest Rs. 10,000.00 lacs).
 
 f) Life Insurance Corporation of India:
 
 The term loan is secured by registered mortgage of land admeasuring
 about 2107399 sq. ft. along with structures to be constructed thereon
 situated in Village Chandansar, Virar (East) Dist. Thane and land
 admeasuring about 22.50 acres at Kochi. Rate of interest is 12.75% p.a.
 payable monthly. Repayment by sixteen equal quarterly installments
 beginning from 1st May, 2009. (Amount repayable within next twelve
 months exclusive of interest Rs. 7,500.00 lacs).
 
 g) Union Bank of India:
 
 i) Secured by Mortgage of commercial property situated at 3rd and 4th
 floor admeasuring 15045 sq. ft. & 15155 sq. ft. respectively towards
 south side in Dheeraj Arma, Bandra (E). Rate of interest is BPLR +
 0.50%
 
 p.a. payable monthly. Repayment by 23 equal monthly installments of Rs.
 1000.00 lacs beginning from October, 2009. (Amount repayable within
 next twelve months exclusive of interest Rs. 5,377.00 lacs).
 
 ii) Other term loan is secured by mortgage of property situated at LBS
 marg, Mulund (W), Mumbai (Land bearing plot nos. 6, 16, 17, 19, 20 and
 21, old survey no. 94(pt), 119(pt), 127(127) & Hissa No. 1 (pt)).  Rate
 of interest is 1.50% over BPLR payable monthly and repayment in 15
 equal monthly installments of Rs. 925.00 lacs commencing from March,
 2009 (Amount repayable within next twelve months exclusive of interest
 Rs. 10,140.00 lacs).
 
 Both the above term loans are further secured by 663357.50 sq. mtrs of
 non agriculture land situated at Village Kasrali, Vasai. The land is
 owned by Privilege Power and Infrastructure Private Limited, the wholly
 owned subsidiary of the Company.
 
 h) Central Bank of India:
 
 Secured by registered mortgage of property admeasuring 10 acres at
 Kurla. Rate of interest BPLR payable monthly. Repayment in six monthly
 installments after moratorium period of 18 months from the 1st date of
 disbursement. (Amount repayable within next twelve month exclusive of
 interest Rs. 15,000.00 Lacs)
 
 i) Corporation Bank:
 
 Secured by equitable mortgage of property admeasuring 97320 sq. mtrs.
 of land situated at village Chandansar, Virar (East) which is owned by
 Privilege Power and Infrastructure Private Limited. Rate of interest
 COBAR + 0.75% foating. Repayment in ten quarterly installments of Rs.
 1,000.00 lacs each after moratorium period of 6 months from the 1st
 date of disbursement. (Amount repayable within next twelve month
 exclusive of interest Rs. 4,000.00 lacs)
 
 j) Punjab National Bank:
 
 Secured by equitable mortgage of land admeasuring 2,63,870 sq. mts. at
 village Dongare, Taluka Vasai, District Thane. Rate of interest is
 BPLR+TP+1.50%. Repayment in 12 monthly installments commencing from
 July 2010 (Amount repayable within next twelve month exclusive of
 interest Rs. Nil)
 
 k) Oriental Bank of Commerce:
 
 Secured by mortgage of non agriculture land admeasuring 1) 13,436 sq.
 mtr. at survey no. 207 at Nahur village, 2) 7,509 sq. yards at survey
 no. 36 at Ghodbunder Road at Malad, 3) 1,44,690 sq. mtrs. situated at
 Maljipada,Vasai and 4) 4,940 sq. yards bearing portion of plot nos. 41
 situated at Santacruz town planning scheme no. 2, Juhu Tara Road, Juhu,
 Property owned by Juhu Investment Pvt. Limited. Rate of interest is PLR
 +2.50% payable monthly. The repayment is in 18 equal monthly
 installments of Rs. 972.22 lacs commencing from December 2008 (Amount
 repayable within next twelve month exclusive of interest Rs. 11,666.67
 lacs).
 
 l) Punjab and Sind Bank:
 
 Secured by 1,52,955 sq. meters of non-agricultural plots of land
 situated at Village Chandansar, Virar (E) owned by Privilege Power and
 Infrastructure Private Limited carrying interest at BPLR + 0.25%
 payable monthly and having tenor of twelve months. Repayable by one
 bullet payment. (Amount repayable within next twelve months exclusive
 of interest Rs. 10,000.00 lacs).
 
 m) United Bank of India:
 
 (i) Secured by registered mortgage of land admeasuring 1,07,760 sq.
 mtr. situated at Kopri (Chandansar), Virar East, Dist. Thane which is
 owned by Privilege Power and Infrastructure Private Limited. Rate of
 interest BPLR + 150 basis points payable monthly. Repayable in 10
 quarterly installments of Rs.1,000.00 lacs each after moratorium of 6
 months from the date of first disbursement (Amount repayable within
 next twelve months exclusive of interest Rs.3,000.00 lacs).
 
 (ii) Secured by pledge of original development right certificate issued
 by Municipal Corporation of Greater Mumbai covering TDR for an
 aggregate area of 10,76,400 sq. ft. Rate of interest @ BPLR but not
 below 12.50% p.a. payable monthly. Repayment will be in 8 equal monthly
 installments after moratorium of 4 months from date of frst
 disbursement. The amount of each installment would be 1/8th of balance
 in
 
 account after adjusting the sale proceeds of TDR during the initial 4
 months of moratorium period. (Amount repayable within next 12 months
 exclusive of interest Rs. 7,500.00 lacs).
 
 n) The Jammu and Kashmir Bank:
 
 Secured by registered mortgage of non agricultural property of
 Privilege Power and Infrastructure Pvt. Ltd.  admeasuring 2,31,490 sq.
 mtr. situated at Kopri, Virar (E). Rate of interest PLR payable
 monthly. Repayable in 10 equal quarterly installments of Rs. 2,000.00
 lacs each. The first installment to commence after moratorium of 6
 months from the date of first disbursement. (Amount repayable within
 next 12 months exclusive of interest Rs. 5,983.50 lacs).
 
 o) Vijaya Bank:
 
 Secured by registered mortgage of non agricultural land bearing survey
 no. 196 (348) admeasuring 30,410 sq. mtr. situated at Village
 Sasunavghar, Vasai. The loan carrying interest at BPLR + 2.00 + 0.25%.
 Repayment in 12 monthly installments commencing from January 2009.
 (Amount repayable within next twelve months exclusive of interest Rs.
 1,797.95 lacs).
 
 p) UCO Bank:
 
 Secured by registered mortgage of immovable property (non-agricultural)
 admeasuring 1,29,600 sq. mtrs.  situated at Village Doliv, Taluka
 Vasai, Dist. Thane. Rate of interest BPLR + 0.75% payable monthly.
 Repayable in 10 quarterly installments of Rs.2,000.00 lacs each after
 moratorium of 6 months from the date of first disbursement (Amount
 repayable within next twelve months exclusive of interest Rs.6,000.00
 lacs)
 
 II) Secured Redeemable Non Convertible Debentures (Listed):
 
 i) 2500 (2500) Secured Redeemable Non-Convertible Debentures of Rs.
 10,00,000/- each fully paid carrying interest at the rate of 11.75%
 p.a. payable monthly each year are issued on private placement basis to
 Life Insurance Corporation of India. The debentures are secured by
 2,88,940 sq. mtr. non-agricultural land situated at village Dolive and
 Village Kharadi, Vasai, District Thane. These Secured Non-Convertible
 Debentures are redeemable in eighteen equal monthly installments of Rs.
 13.89 lacs commencing from October 2010.
 
 ii) 3000 (3000) Secured Redeemable Non-Convertible Debentures of Rs.
 10,00,000/- each fully paid carrying interest at the rate of 11.75%
 p.a. payable monthly each year are issued on private placement basis to
 Life Insurance Corporation of India. The debentures are secured by
 2,88,940 sq. mtr. non-agricultural land situated at village Dolive and
 Village Kharadi, Vasai, District Thane. These Secured Non-convertible
 Debentures are redeemable in eighteen equal monthly installments of Rs.
 16.67 lacs commencing from October 2010.
 
 The aforesaid debentures are secured by registered mortgage of Dreams
 mall at Bhandup and 2,39,895 sq. ft.  of build up area in building
 known as Dheeraj Arma, Bandra (East).
 
 The above debentures are further secured by registered mortgage of
 first to nine floors except 3rd, 4th and 6th floors of commercial
 building known as Dheeraj Arma, Bandra (East).
 
 iii) 3250 (3250) Secured Redeemable Non-Convertible Debentures of Rs.
 10,00,000/- each fully paid carrying interest @ 13.25% p.a. payable
 quarterly each year are issued on private placement basis to various
 bankers and financial institutions. The debentures are secured by
 registered mortgage of a) property situated at Mahul Plot No.  2 of
 Survey No. 15 Hissa No. 1 corresponding to CTS No. 611 taluka Kurla
 admeasuring about 7492.90 sq. mtr.
 
 b) property bearing CTS No. 602, 603, 604, 605 and 606 admeasuring
 23,571.80 sq. mtrs. at Mahul and
 
 c) property situated at village Kurla Greater Mumbai and in the
 registration sub dist. of Bandra admeasuring 18,183.57 sq. mtr. These
 Secured Non-Convertible Debentures are redeemable on 19th February,
 2010.
 
 iv) 2500 (Nil) Secured Redeemable Non-Convertible Debentures of Rs.
 10,00,000/- each fully paid carrying interest @ 13.25% p.a. payable
 monthly, are issued on private placement basis to Bank of India. The
 debentures are secured by registered mortgage of a) property situated
 at Mahul Plot No. 2 of Survey No. 15 Hissa No. 1 corresponding to CTS
 No. 611 taluka Kurla admeasuring about 7492.90 sq. mtr. and property
 situated at village Kurla Greater Mumbai and in the registration sub
 dist of Bandra admeasuring 7,983.36 sq. mtr. These Secured
 Non-Convertible Debentures are repayable in thirty six equal monthly
 installments of Rs. 694.00 lacs commencing from April 2010.
 
 III) Secured Redeemable Non-Convertible Debentures (Non listed):
 
 i) 3000 (Nil) Secured Redeemable Non-Convertible Debentures of Rs.
 10,00,000/- each fully paid carrying interest with a floor of 11.95%
 p.a. and upper cap of 12.25% p.a. payable monthly each year are issued
 on private placement basis to Life Insurance Corporation of India.
 Secured by registered mortgage of non agricultural land admeasuring
 3195.82 sq. mtrs. situated at Survey No. 37, mauje Ishwarpura, Taluka
 Radi, Mehsana and 2,88,940 Sq. mtr. non-agricultural land situated at
 village Dolive and Village Kharadi, Vasai, District Thane. These
 Secured Non-Convertible Debentures are redeemable in eighteen equal
 monthly instalments of Rs. 16.67 lacs commencing from October 2010.
 
 The above debentures are further secured by registered mortgage of
 first to nine floors except 3rd, 4th and 6th floors of commercial
 building known as Dheeraj Arma, Bandra (East).
 
 ii) 200 (Nil) Secured Redeemable Non-Convertible Debentures of Rs.
 10,00,000/- each fully paid carrying interest @ 13.25% p.a. payable
 quarterly each year are issued on private placement basis to various
 bankers and financial institutions. The debentures are secured by
 registered mortgage of property situated at a) Mahul Plot No. 2 of
 Survey No. 15 Hissa No. 1 corresponding to CTS No. 611 taluka Kurla
 admeasuring about 7492.90 sq. mtrs. b) Mahul, property bearing CTS No.
 602, 603, 604, 605 and 606 admeasuring 23,571.80 sq. mtrs.  and c)
 Village Kurla Greater Mumbai and in the registration sub dist of Bandra
 admeasuring 18,183.57 sq. mtrs.  These Secured Non-Convertible
 Debentures are redeemable on 19th February, 2010.
 
 iii) 150 (Nil) Secured Redeemable Non-Convertible Debentures of Rs.
 10,00,000/- each fully paid carrying interest @ 13.25% p.a. payable
 quarterly each year are issued on private placement basis to General
 Insurance Corporation. These Secured Non-Convertible Debentures are
 redeemable after 24 months from the date of allotment. Secured by
 registered mortgage of commercial building No. 5 known as Dheeraj Arma,
 Bandra.  These secured redeemable non-convertible debenture are
 redeemable on 22nd June, 2010.
 
 iv) 400 (Nil) Secured Redeemable Non-Convertible Debentures of Rs.
 10,00,000/- each fully paid carrying interest @ 13.25% p.a. payable
 monthly are issued on private placement basis to Punjab National Bank.
 These Secured Non-Convertible Debentures are redeemable after 24 months
 from the date of allotment. Secured by immovable property and the
 security is being created for the same. These secured redeemable
 non-convertible debenture are redeemable on 4th January, 2011.
 
 v) 900 (Nil) Secured Redeemable Non-Convertible Debentures of Rs.
 10,00,000/- each fully paid carrying interest @ 16% p.a. payable
 monthly are issued to UTI Mutual Fund. Theses Secured Non-Convertible
 Debentures are redeemable in 24 months on monthly basis with effect
 from 25th March, 2009 and the security is being created for the same.
 
 B) Unsecured loans:
 
 a) Redeemable non-convertible debentures:
 
 i) 25 (25) Unsecured Redeemable Non-Convertible Debentures of Rs.
 1,00,00,000/- each fully paid carrying interest with a floor of 12%
 p.a. and upper cap of 12.10% p.a. payable quarterly are issued on
 private placement basis to Life Insurance Corporation of India
 (Formerly known as LIC Mutual Fund). These Non-Convertible Debentures
 are redeemable on 17th December, 2009.
 
 ii) 25 (25) Unsecured Redeemable Non-Convertible Debentures of Rs.
 1,00,00,000/- each fully paid carrying interest with a floor of 12.15%
 p.a. and upper cap of 12.20% p.a. payable quarterly are issued on
 private placement basis to Life Insurance Corporation of India
 (Formerly known as LIC Mutual Fund). These Non-Convertible Debentures
 are redeemable on 27th December, 2009.
 
 Notes:
 
 i) All the above loans and debentures have been personally guaranteed
 by Executive Chairman and Managing Director.
 
 ii) IDBI Trustee are trustee to all the Debentures issued.
 
 16.  The income tax assessments have been completed up to the
 assessment year 2006-07. For the Assessment Year 2005-06, the Company
 has preferred an appeal against the assessment order passed by the ITO
 and has deposited entire tax demand.  There is no pending tax demand on
 the Company.
 
 17.  Figures for the previous accounting period have been regrouped,
 rearranged, restated and reclassified wherever necessary.  Accordingly,
 amounts and other disclosure for the previous accounting period are
 included as an integral part of the current accounting period financial
 statement and are to be read in relation to the amounts and other
 disclosures relating to the current accounting period.