The scheme of amalgamation of Balaji Tirupati Buildcon Ltd.
(Amalgamated Company) with MVL Ltd. was approved by the Hon''ble High
Court of Delhi on 8th October 2010. However the effective date of the
said scheme is 12th January 2011. Assets and Liabilities of the
amalgamated company were line-wise merged during the year, as a result
of which: -
a) Authorized capital of the company increased from 70,00,00,000 to
73,00,00,000 equity share of Rs. 1/- each.
b) Issued, subscribed and paid up capital increased from 53,42,43,200
to 60,12,43,200 equity shares of Rs. 1/- each - representing
6,70,00,000 equity shares of Rs. 1 each issued to the existing
shareholders of the amalgamated company.
c) Net debit balance of Rs. 6,03,18,042/- on account of amalgamation
adjustments in respect of reserves and surplus, debit balance of profit
and loss account, goodwill and deferred tax assets taken over was
adjusted out of reserves and surplus of the amalgamated company.
d) Other assets and liabilities of the amalgamated company were merged
with the assets and liabilities of the amalgamating company.
2. Previous year figures have been regrouped and rearranged, wherever
3. Some of the Debit and credit balances of Sundry Debtors,
Creditors, Loans, advances & deposits are subject to confirmation and
consequent adjustment if any arising from reconciliation. The
Management however is of the view that there will be no material
adjustments in this regard.
4. Determination of Revenues under ''Percentage of Completion
Method'' necessarily involves making estimates by management for
percentage of completion, cost to completion, revenues expected from
projects, and foreseeable losses. These estimates being of technical
nature have been relied upon by the auditors as per management
5. In the opinion of Directors, the current assets, loans and
advances have value on realization in the ordinary course of business
at least equal to the value at which they are stated in the forgoing
6. There are no micro and small enterprises, to whom the company owes
sums, which are outstanding for more than 45 days as at 31st December
2011. This information as required to be disclosed under the Micro,
Small and Medium Enterprises Development Act. 2006 has been determined
(to the extent such parties have been identified) on the basis of
information available with the company, further no interest during the
year has been paid or is payable under the terms of the Act.
7. Segment Reporting
Segments are being indentified on the basis of dominant source and
nature of risks and returns. Industry segments of the company w.e.f.
July 2011, are primarily Real Estate & Hospitality Sector.
Operations of Hospitality Sector commenced from July 2011, there is no
revenue for the year. Expenses directly related to the said sector
during the year are capitalized as work in progress. All other income,
direct expenses, fixed and other assets and liabilities in relation
each segment are categorized based on items that are individually
identifiable to that segment. Unallocated item, if any, is grouped as
8. As per the best estimate of the Management, no provision is
required to be made in terms of Accounting Standard (AS)- 29, in
respect of any present obligation as a result of past event that could
lead to a probable outflow of resource which would be required to
settle the obligation.
9. Liability for labour cess payable for projects in the States of
Rajasthan and Haryana could not be ascertained in the absence of
clarification and legal opinion sought in respect of applicable date
and applicability on completed projects. Meanwhile the company has paid
Rs. 32,63,216/- towards labour cess during the year as per its own
estimate of amount due.