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Alacrity Housing

BSE: 523738|ISIN: INE781D01011|SECTOR: Construction & Contracting - Housing
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Alacrity Housing is not traded in the last 30 days
Alacrity Housing is not listed on NSE
Mar 13
Notes to Accounts Year End : Mar '14
1. Contingent liabilities not provided for:
 
 a. Liability that may arise towards interest as claimed by ESIC is to
 the extent of Rs.3.50 lacs for the period April 2001 to Sept. 2005.
 
 b. The Provident Fund Department has issued a Show Cause Notice cum
 Levy Order dated 01.03.2013 to Alacrity Foundations (P) Ltd seeking
 payment of interest relating to the Company of Rs.28,65,390/- u/s. 7Q of
 the Employees'' Provident Funds & Miscellaneous Provisions Act, 1952 for
 delayed remittance of monthly contributions and Rs.32,70,851/- for
 penalty u/s. 14B of the Act for delayed payment of monthly
 contributions.  Rs.28,65,390/- has been provided for in the books of
 accounts. No provision is made for the penalty as the Com- pany, given
 its financial circumstances, has filed an appeal with the Provident
 Fund Appellate Tribunal, New Delhi for a waiver of penalty and damages.
 
 c. The Company had preferred an appeal for income tax demand for the
 assessment year (AY) 1993-94 amounting to Rs. 27.10 Lacs excluding
 interest and penalty thereon with the High Court of Madras. The Hon''ble
 Court allowed the appeal in favour of the Company. The Company is
 awaiting revised orders from the assessing officer deleting the demand
 for tax and interest. As per letter dated 13.10.2006, the Tax
 authorities had further demanded payment of Rs.243.57 lacs including
 interest of Rs.32.47 lacs and penalty of Rs.184 lacs for the above AY
 1993- 94. The Company had received order dated 12.10.2011 from the
 Commissioner of Income-Tax, (A)-lll, Chennai deleting the demand for
 penalty to the extent of Rs.184 lacs.
 
 No provision has also been made for the tax demand of Rs.289.78 lacs
 including interest of Rs. 44.20 lacs for the AY 1994- 95 which arose 
 due to the disallowance of the brought forward loss and unabsorbed 
 depreciation of the AY 1993-94. The Company is awaiting the revised
 assessment orders in its favour in the light of the above High Court 
 order.
 
 No provision has also been made for the tax demands for the AY 1995-96
 of Rs.39.55 lacs (including interest of Rs.6.03 lacs) which is also
 consequent to the disallowance of the brought forward loss for AY
 1993-94 and the Company is awaiting revised assessment orders in its
 favour.
 
 d. Interest claim of about Rs.27.11 lacs made by creditors/customers
 disputed by the Company in courts.
 
 e. Claim against the company of Rs.20 lacs made by a landowner of a
 property, disputed by the company.
 
 2. The balance shown as dues from Debtors represents the money due
 mostly from customers with whom the Company had entered into agreements
 before 2003-04 for many of whom the company would have to execute sale
 deeds after getting various clearances and hence considered recoverable
 and no provision made there against even though due for a long period
 of time.
 
 3. Presently, a total of 37 cases are pending against the company by
 customers, creditors and other parties before various courts including
 the State & District Consumer Forum, Metropolitan Magistrate Court,
 District Munsif Court, Fast Track Court, City Civil Court and High
 Court of Madras for non-fulfillment of certain obligations by the
 company. Suitable provisions to the extent of Rs.500.92 lacs (Rs. 530.32
 lacs) have been made in the accounts wherever judgments have gone
 against the company and remain undisputed. Value of claims against the
 company for which no provision has been made since they are under
 dispute amounted to Rs.91.35 lacs as at 31.03.2014.
 
 4. Unsecured loan includes a loan viz. Chakiat Agencies Pvt Ltd (Rs. 9.56
 lacs) who has approached the courts seeking repayment of loan dues. No
 provision is made towards interest on the unsecured loan from the year
 2003-04.
 
 5. Sundry Creditors include dues to Small Scale Industrial Undertakings
 Rs. 9.24 lacs (Rs. 9.24 lacs). The Small Scale Industrial Undertakings to
 whom the amount outstanding for more than 30 days, such due exceeding Rs.
 1 lac are as follows:
 
                              31.03.2014 (in Lacs) 31.03.2013 (in Lacs)
 
 1 Kailash Hi-Tech Timber 
 India Ltd                            1.53              1.53
 
 2 Prosteel Industries                5.63              5.63
 
 3 The Mayuram Timber & 
 General Trading Co.                  2.08              2.08
 
 6. Note on Secured Loans:
 
 a. ICICI Bank Ltd - Rs. 1359.91 lacs: The loan outstanding as per books
 of account as at 31.03.2014 is Rs. 1359.91 lacs after payments amounting
 to Rs. 531 lacs by Land Marvel Homes (LMH) to whom the Company had
 transferred Project Paramount Gardens'' (Saligramam) development rights
 with related liabilities vide agreement dated 31.03.2005. The bank has
 filed an application before the Debt Recovery Tribunal (DRT). The bank
 had earlier issued notice under the Securitization and Reconstruction
 of Financial Assets & Enforcement of Securities Inter- est Act 2002
 (SARFAESI) dated 10.07.2008 to recover an amount of Rs.4070.12 lacs
 including interest up to 22nd May 2008. The claim of the Bank towards
 interest, penalties and other charges is disputed by the Company and no
 provision made there against. The properties held by ICICI Bank as
 collateral security are i) Property in Perambur ii) 55.52% undivided
 share in the 129 grounds at West Mogappair and 39 flats under
 construction (from which the Bank ceded 11.84% undivided share to State
 Bank of Indore). (Note: The landowners who hold 23.86% ownership of the
 undivided share have not cooperated with the Company for registering
 the sale deeds in favour of 175 flat owners, 18 of whom have filed
 suits in various courts for registration of sale deeds) iii) The bank
 holds a first charge on the property at No 25, Thirumalai Road, Chennai
 - 600 017 belonging to Alacrity Foundations Private Limited''
 
 b. State Bank of Hyderabad - Rs. 118.56 lacs: The Bank has obtained an
 order dated 03.02.2010 from the Debt Recovery Tribunal (DRT) directing
 the Company to pay the Bank Rs. 118.56 lacs including interest @ 15% p.a.
 until 03.02.2010. 7118.56 lacs has been provided for by the Company in
 its books of accounts. No provision has been made in the books for
 interest after 03.02.2010 since the Company is confident of getting
 necessary waiver from the Bank.
 
 c. Union Bank of India - Rs. 1216.70 lacs: The Bank has obtained an order
 from the Debt Recovery Tribunal (DRT) directing the Company to pay the
 Bank Rs. 1216.70 lacs including interest upto 19.12.2008. Rs. 1216.70 lacs
 has been provided for by the Company in its books of accounts. No
 provision has been made in the books for interest after 19.12.2008
 since the Company is confident of getting necessary waiver from the
 Bank.
 
 d. Phoenix ARC Private Limited - the Asset Reconstruction Company had
 been assigned the Company''s debt and accrued interest thereon along
 with underlying security earlier by State Bank of India to the extent
 of 11.84% on the Mogappair (Tarangini project), vide Registrar of
 Companies, Certificate of Registration for Modification of Mortgage,
 u/s 132 read with section 135 of the Companies Act, 1956. State Bank of
 India had earlier obtained an order dated 25.10.2010 from the Debt
 Recovery Tribunal (DRT) directing the Company to pay the Bank Rs. 585.45
 lacs with further interest @ 13.5% p.a from 11.07.2005 until date of
 settlement. Rs. 585.45 lacs has been provided for by the Company in its
 books of accounts. No provision has been made in the books towards
 further interest from 11.07.2005 since the Company is confident of
 getting necessary waiver now from Phoenix.
 
 7. Status on other Bank Loans
 
 a. Citibank N.A.: The principal amount of Rs. 560 lacs of unsecured loan
 facility (employee home loans converted vide agreement dated
 02.08.2006) is remaining outstanding to the Bank. Even though the Bank
 has claimed a total due of Rs. 2653.90 lacs as at 31.03.2014 including
 interest at a compounded rate of 9%, no interest is provided in the
 books of account since the Company is confident of getting necessary
 waiver from the 6ank.
 
 b. State Bank of Indlia: The principal loan amount of Rs.97 lacs (balance
 after repayment by Jam Housing A Constructions Ltd (JHCL) of Rs. 283 lacs
 to the Bank of the employee home loans converted after transferring
 project Prasan''s development rights with related liabilities to JHCL
 vide Agreement dated 06.10.2005) is / remaining outstanding to the
 Bank. No interest is provided in the books of account since the Company
 is confident of getting necessary waiver from the Bank. The Bank has
 obtained an order dated 09.04.2012 from the Debt Recovery Tribunal
 (DRT) claiming a total of Rs. 216 lacs with further interest @> 10.25%
 from 04.03.2011. The Bank holds a second charge on the property at No
 25, Thirumalai Road, Chennai - 600 017 belonging to Alacrity
 Foundations Private Limited, (Company in which two of the Directors of
 the Company are Directors).
 
 8. The Company is engaged in the business of promoting, developing and
 construction of residential flats which is the significant business
 segment. There is no other business segment.
 
 9. Due to financial difficulties, the Company had to stop its business
 of full fledged construction activities during 2003-04. The accounts
 have been prepared now taking the present position into account as a
 going concern since the Board of Directors are confident that the
 Company can be revived in due course of time.
 
 10. The present value of gratuity obligation and superannuation
 benefits payable is not recognized as expense by the Company. The
 Company shall meet its gratuity and other employee retirement benefits
 as and when the concerned employee retires. Accordingly, no provision
 has been made in the accounts of the Company towards employee benefits
 including gratuity. The company has not deposited the provision created
 upto March 2004 for Rs. 28.66 lacs towards superannuation fund.
 
 13. Previous year''s figures have been regrouped and rearranged wherever
 necessary in order to make them
 
 comparable with the current year''s figures. .
 
 14. Balances under sundry debtors, sundry creditors and loans and
 advances remain to be confirmed and in
 
 absence of evidence to the contrary, book balances have been taken as
 correct subject to the notes given above. .
 
 15. Related party disclosures under Accounting Standard 18:
 
 Key managerial persons (KMP), 
 their relatives''                1. Ashok R Karnad    - Managing Director
 names                           
                                 2. Ajit Hattikudur   - Director
 
                                 3. Dilip Dharmasthal - Director
 
                                 Relatives of key managerial person
 
                                 1. Sunil Karnad
 
                                 2. Nita Hattikudur
 
 16. Since the Company is in losses, there is NIL Liability towards
 Deferred Tax. No Deferred Tax Asset has also been created as there is
 no reasonable certainty that the Deferred Tax Asset can be set-off
 against future income.
 
 17. The nature of business carried on by the Company, viz. construction
 activity is such that furnishing quantitative details relating to
 consumption / stock of building materials is not feasible.
 
 18. The Company could not fulfill the requirements of Section 383A of
 the Companies Act, 1956 relating to appointment of Company Secretary
 for the Company due to financial difficulties.
 
 20. Figures in brackets represent previous year''s figures.
Source : Dion Global Solutions Limited
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