Mar 31, 2023
Provisions, contingent liabilities and contingent assets
Provisions: Provisions are recognized in respect of
liabilities, which can be measured only by using a
substantial degree of estimates when:
(i) the Company has a present obligation as a result
of a past event;
(ii) a probable outflow of resources embodying
economic benefits will be required to settle the
obligation; and
(iii) the amount of the obligation can be reliably
estimated.
Reimbursement expected in respect of expenditure
required to settle a provision is recognized only when
it is virtually certain that the reimbursement will be
received.
Contingent Liability: Contingent liability is disclosed in
the case of:
(i) a present obligation arising from a past event,
when it is not probable that an outflow of
resources embodying economic benefits will be
required to settle the obligation; and
(ii) a possible obligation, that arises out of past events
and the existence of which will be confirmed only
by one or more uncertain future events unless the
probability of outflow of resources is remote.
Contingent Assets: Contingent assets are neither
recognized nor disclosed. However, when realization of
income is virtually certain, related asset is recognized.
XVIII. Cash & cash equivalents
Cash and cash equivalents for the purposes of cash
flow statement comprise cash at bank and in hand and
short-term investments with an original maturity of
twelve months or less. Cash flow statement is prepared
using the indirect method.
Basic earnings per share is calculated by dividing the
net profit or loss for the period attributable to equity
shareholders by the weighted average number of equity
shares outstanding during the period. The weighted
average numbers of equity shares outstanding during
the period are adjusted for events of bonus issue, a
share split and share warrants conversion.
Diluted earnings per share is calculated by adjusting
net profit or loss for the period attributable to equity
shareholders and the weighted number of shares
outstanding during the period for the effect of all
dilutive potential equity shares.
Further, where the statement of profit and loss includes
extraordinary items, the Company discloses basic and
diluted earnings per share computed on the basis of
earnings excluding extraordinary items (net of tax
expenses).
The Company is required to measure the financial
instruments at fair value at each Balance Sheet date.
Fair value is the price that would be received to sell
an asset or paid to transfer a liability in an ordinary
transaction between market participants at the
measurement date. The fair value measurement is
based on the presumption that the transaction to sell
the asset or transfer the liability takes place either:
(i) In the principal market for the asset or liability, or
(ii) In the absence of a principal market, in the most
advantageous market for the asset or liability.
A fair value measurement of a non-financial asset
takes into account a market participant''s ability to
generate economic benefits by using the asset in its
highest and best use or by selling it to another market
participant that would use the asset in its highest and
best use. The Company uses valuation techniques that
are appropriate in the circumstances and for which
sufficient data are available to measure fair value,
maximizing the use of relevant observable inputs and
minimizing the use of unobservable inputs. All assets
and liabilities, for which fair value is measured or
disclosed in the financial statements, are categorized
within the fair value hierarchy, described as follows,
based on the lowest level input that is significant to the
fair value measurement as a whole:
Level 1: Quoted (unadjusted) market prices in
active markets for identical assets or liabilities.
Level 2: Valuation techniques for which the
lowest level input that is significant to the fair value
measurement is directly or indirectly observable.
Level 3: Valuation techniques for which the lowest level
input that is significant to the fair value measurement is
unobservable.
For the purpose of fair value disclosures, the Company
has determined classes of assets & liabilities on the
basis of the nature, characteristics and the risks of the
asset or liability and the level of the fair value hierarchy
as explained above.
A financial instrument is any contract that gives rise to
a financial asset of one entity and a financial liability
or equity instrument of another entity. Financial assets
includes trade receivable, loan to body corporate, loan
to employees, security deposits and other eligible
current and non-current assets. Financial liabilities
include Loans, trade payables and eligible current and
non-current liabilities.
(1) Classification
The Company classifies financial assets as
subsequently measured at amortized cost, fair
value through other comprehensive income or fair
value through profit or loss on the basis of both:
(i) the entity''s business model for managing
the financial assets; and
(ii) the contractual cash flow characteristics of
the financial asset.
A financial asset is measured at amortized cost if
both of the following conditions are met:
(i) the financial asset is held within a business
model whose objective is to hold financial
assets in order to collect contractual cash
flows; and
(ii) the contractual terms of the financial asset
give rise on specified dates to cash flows that
are solely payments of principal and interest
on the principal amount outstanding.
A financial asset is measured at fair value through
other comprehensive income if both of the
following conditions are met:
(i) the financial asset is held within a business
model whose objective is achieved by both
collecting contractual cash flows and selling
financial assets; and
(ii) the contractual terms of the financial asset
give rise on specified dates to cash flows that
are solely payments of principal and interest
on the principal amount outstanding.
A financial asset is measured at fair value through
profit or loss unless it is measured at amortized
cost or at fair value through other comprehensive
income.
All financial liabilities are subsequently measured
at amortized cost using the effective interest
method or fair value through profit or loss.
(2) Initial recognition and measurement
The Company recognizes financial assets and
financial liabilities when it becomes a party to
the contractual provisions of the instrument. All
financial assets and liabilities are recognized at
fair value at initial recognition, plus or minus,
any transaction costs that are directly attributable
to the acquisition or issue of financial assets
and financial liabilities that are not at fair value
through profit or loss.
(3) Financial assets subsequent measurement
Financial assets are subsequently measured
at amortized cost, fair value through other
comprehensive income (FVOCI) or fair value
through profit or loss (FVTPL), as the case
may be, except for the investments where no
information is available with the Company. Such
investments are subsequently measured at cost.
Financial liabilities are subsequently measured at
amortized cost or fair value through profit or loss.
(4) Effective interest method
The effective interest method is a method of
calculating the amortized cost of a debt instrument
and allocating interest income over the relevant
period. The effective interest rate is the rate that
exactly discounts estimated future cash receipts
through the expected life of the debt instrument,
or, where appropriate, a shorter period, to the net
carrying amount on initial recognition. Income
is recognized on an effective interest basis for
debt instruments other than those financial
assets classified as at FVTPL. Interest income is
recognized in profit or loss and is included in the
"Other income" line item.
(5) Trade receivables
Trade receivables are the contractual right
to receive cash or other financial assets and
recognized initially at fair value. These are
subsequently measured at amortized cost (Initial
fair value less expected credit loss). Expected
credit loss is the difference between all contractual
cash flows that are due to the Company and all
that the Company expects to receive (i.e. all cash
shortfall), discounted at the effective interest rate.
(6) Equity investments
All equity investments in the scope of IND AS 109
are measured at fair value other than investments
in subsidiary, associate & Joint Venture which are
stated at cost as per IND AS 27 ''separate financial
statement''. For all other equity instruments, the
Company may make an irrevocable election
to present in other comprehensive income
subsequent changes in the fair value. The
Company makes such election on an instrument -
by - instrument basis. For other equity instrument
due to non-availability of sufficient and recent
information, cost is taken as appropriate estimate
of fair value with reference to IND AS 109 ''financial
instrument''.
(7) Cash and cash equivalents
Cash and cash equivalent in the balance sheet
comprise cash at banks and on hand and short¬
term deposits with an original maturity of
twelve months or less, which are subject to an
insignificant risk of changes in value.
(8) Financial liabilities
Financial liabilities are recognized initially at fair
value less any directly attributable transaction
costs. These are subsequently carried at
amortized cost using the effective interest method
or fair value through profit or loss. For trade and
other payables maturing within one year from
the balance sheet date, the carrying amounts
approximate fair value due to the short maturity
of these instruments.
(9) Trade payables
Trade payables represent liabilities for goods
and services provided to the Company prior to
the end of financial year and which are unpaid.
Trade payables are presented as current liabilities
unless payment is not due within 12 months after
the reporting period or not paid/ payable within
operating cycle. They are recognized initially at
their fair value and subsequently measured at
amortized cost using the effective interest method.
(10) Borrowings
Borrowings are initially recognized at fair value,
net of transaction costs incurred. Borrowings
are subsequently measured at amortized cost.
Any difference between the proceeds (net of
transaction costs) and the redemption amount is
recognized in profit or loss over the period of the
borrowings using the effective interest method.
Fees paid on the establishment of loan facilities
are recognized as transaction costs of the loan.
Borrowings are classified as current liabilities
unless the Company has an unconditional right
to defer settlement of the liability for at least 12
months after the reporting period. Where there
is a breach of a material provision of a long-term
loan arrangement on or before the end of the
reporting period with the effect that the liability
becomes payable on demand on the reporting
date, the Company does not classify the liability
as current, if the lender agreed, after the reporting
period and before the approval of the financial
statements for issue, not to demand payment as
a consequence of the breach.
(11) Equity Instruments
An equity instrument is any contract that evidences
a residual interest in the assets of Company after
deducting all of its liabilities. Equity instruments
are recognized at the proceeds received, net of
direct issue costs.
(12) Derecognition of financial instrument
The Company de-recognizes a financial asset
when the contractual rights to the cash flows
from the financial asset expire or it transfers the
financial asset and the transfer qualifies for de¬
recognition under IND AS 109. A financial liability
(or a part of a financial liability) is de-recognized
from the Company''s balance sheet when the
obligation specified in the contract is discharged
or cancelled or expires.
(13) Offsetting of financial instruments
Financial assets and financial liabilities are offset
and the net amount is reported in the balance
sheet if there is a currently enforceable legal right
to offset the recognized amounts and there is an
intention to settle on a net basis, to realize the
assets and settle the liabilities simultaneously.
(14) Financial guarantee
Financial guarantee contracts issued by the
entities are those contracts that require a
payment to be made to reimburse the holder
for a loss it incurs because the specified debtor
fails to make a payment when due in accordance
with the terms of a debt instrument. Financial
guarantee contracts are recognized initially as a
liability at fair value, adjusted for transaction costs
that are directly attributable to the issuance of the
guarantee. Subsequently, the liability is measured
at the higher of the amount of loss allowance
determined as per impairment requirements
of IND AS 109 and the amount recognized less
cumulative amortization.
XXII. Non-current assets held for sale/ distribution to
owners and discontinued operations
The Company classifies non-current assets (or disposal
groups) as held for sale if their carrying amounts will
be recovered principally through a sale rather than
through continuing use. Held for sale is classified only if
the asset (or disposal group) is available for immediate
sale in its present condition subject only to the terms
that are usual and customary for sale for such assets
(or disposal group) and its sale is highly probable i.e.
management is committed to sale, which is expected
to be completed within the period of contract, as
may have been extended by the term of the contract
or otherwise. Sale transactions include exchanges of
non-current assets for other non-current assets when
the exchange has commercial substance. Non-current
assets (or disposal group) that is to be abandoned are
not classified as held for sale. Non-current assets held
for sale and disposal groups are measured at cost as
the fair value is not available with the Company the
lower of their carrying amount and the fair value less
costs to sell. Assets and liabilities classified as held for
sale are presented separately in the balance sheet.
Interest and other expenses attributable to the liabilities
of a disposal group classified as ''held for sale'' will
continue to be recognized.
Non-current asset (or disposal group) is reclassified
from ''held to sale'' if the criteria are no longer met and
measured at lower of:
(i) Its carrying amount before the asset (or Disposal
group) was classified as held for sale, adjusted
for any depreciation, amortization or revaluations
that would have been recognized had the asset
(or disposal group) not been classified as held for
sale; and
(ii) Its recoverable amount at the date of the
subsequent decision not to sell.
Any adjustment to the carrying amount of a non-current
asset that ceases to be classified as held for sale is
charged to profit or loss from continuing operations in
the period in which criteria are no longer met.
A disposal group qualifies as discontinued operation
if it is a component of an entity that either has been
disposed-off, or is classified as held for sale, and:
(i) represents a separate major line of business or
geographical area of operations;
(ii) is part of a single coordinated plan to dispose of
a separate major line of business or geographical
area of operations; or
(iii) is a subsidiary acquired exclusively with a view to
re-sell.
Mar 31, 2017
As explained and represented by management, the Company has earmarked six unencumbered land parcels including those in subsidiary Companies for sale and utilization of sale proceeds thereof for repayment of deposits. Further, as informed, the management is committed to repay all the deposits along with interest thereon and is making all efforts to arrange the necessary resources required for this purpose.
1. First Time Adoption of Ind AS
These financial statements, for the year ended 31 March 2017, are the first, the company has prepared in accordance with Ind AS. For periods up to and including the year ended 31 March 2016, the company prepared its financial statements in accordance with accounting standards notified under section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (Indian GAAP).
Accordingly, the company has prepared financial statements which comply with Ind AS applicable for periods ending on 31 March 2017, together with the comparative period data as at and for the year ended 31 March 2016, as described in the summary of significant accounting policies. In preparing these financial statements, the companyâs opening balance sheet was prepared as at 1 April 2015, the companyâs date of transition to Ind AS. This note explains the principal adjustments made by the company in restating its Indian GAAP financial statements, including the balance sheet as at 1 April 2015 and the financial statements as at and for the year ended 31 March 2016 and 31 March 2017.
Exemptions applied:-
Deemed cost- Fair value of property, plant and equipment
The Company has elected to continue with the carrying value of all of its plant and equipment, and intangible assets recognised as of April 1, 2015 (transition date) measured as per the previous GAAP and use that carrying value as its deemed cost as of the transition date.
Estimates
The estimates at 1 April 2015 and at 31 March 2016 are consistent with those made for the same dates in accordance with Indian GAAP (after adjustments to reflect any differences in accounting policies) apart from the following items where application of Indian GAAP did not require estimation:
Impairment of financial assets based on expected credit loss model
The estimates used by the company to present these amounts in accordance with Ind AS reflect conditions at 1 April 2015, the date of transition to Ind AS, as of 31 March 2016.
Classification and measurement of financial assets
The company has classified the financial assets in accordance with Ind AS 109 on the basis of facts and circumstances that exist at the date of transition to Ind AS.
Impairment of financial assets: (Trade receivables and other financial assets)
At the date of transition to Ind AS, the Company has determined that there significant increase in credit risk since the initial recognition of a financial instrument would require undue cost or effort, the Company has recognised a loss allowance at an amount equal to lifetime expected credit losses at each reporting date until that financial instrument is derecognised (unless that financial instrument is low credit risk at a reporting date).
2 (ii) FINANCIAL RISK MANAGEMENT
The Companyâs principal financial liabilities, other than derivatives, comprise loans and borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the Companyâs operations. The Companyâs principal financial assets include loans, trade and other receivables and cash and cash equivalents that are derived directly from its operations
The Companyâs financial risk management is an integral part of how to plan and execute its business strategies. The Company is exposed to market risk, credit risk and liquidity risk. The companyâs focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its financial performance.
The Companyâs principal financial liabilities comprise borrowings, trade and other payables. The main purpose of these financial liabilities is to manage finances for the Companyâs operations. The Company principal financial asset includes loan , trade and other receivables, and cash and short-term deposits that arise directly from its operations.
The Companyâs activities are exposed to market risk, credit risk and liquidity risk.
I. Market risk
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market prices comprise three types of risk: currency rate risk, interest rate risk and other price risks, such as equity price risk and commodity price risk. Financial instruments affected by market risk include loans and borrowings, deposits, investments, and derivative financial instruments.
The sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective market risks.
(a) 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. In order to optimize the Companyâs position with regard to interest income and interest expenses and to manage the interest rate risk, treasury performs a comprehensive corporate interest rate risk management by balancing the proportion of the fixed rate and floating rate financial instruments in its total portfolio.
(i) The exposure of group borrowings to interest rate changes at the end of reporting period are as follows:__
(ii) As at the end of reporting period, the company had the following variable rate borrowings and interest rate swap contracts outstanding:
(iii) Sensitivity
Profit/loss is sensitive to higher/lower interest expense from borrowings as a result of changes in interest rates._
(b) Foreign currency Risk
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company has no foreign currency loans in current year end and previous year . Therefore no sensitivity is provided.
(c) price Risk
The company exposure to equity securities price risk arises from the investments held by company and classified in the balance sheet at fair value through profit and loss. The company does not have any investments at the current year end and previous year which are held for trading. Therefore no sensitivity is provided.
II. Credit Risk
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. The company has adopted a policy of only dealing with creditworthy counterparties and obtaining sufficient collateral, where appropriate, as a means of mitigating the risk of financial loss from defaults. The companyâs credit risk exposure towards its counterparties are continuously monitored . Credit exposure of any party is controlled , reviewed and approved by the appointed company official in this regard The average credit period is 30 days.
No interest is charged on trade receivables for the first 30 days from the date of the invoice. Thereafter, interest is charged on case to case basis
III. Liquidity Risk
Liquidity risk is defined as the risk that company will not be able to settle or meet its obligation on time or at a reasonable price. The Companyâs objective is to at all times maintain optimum levels of liquidity to meet its cash and collateral requirements. The Companyâs management is responsible for liquidity, funding as well as settlement management. In addition, processes and policies related to such risk are overseen by senior management. Management monitors the companyâs net liquidity position through rolling, forecast on the basis of expected cash flows.
The table below provides details regarding the remaining contractual maturities of financial liabilities at the reporting date based on contractual undiscounted payments:
(iii) (A) Risk Management
The Company manages its capital to ensure that the company will be able to continue as going concerns while maximising the return to stakeholders through the optimization of the debt and equity balance.
The Companyâs risk management committee reviews the capital structure of the Company on a semi-annual basis. As part of this review, the committee considers the cost of capital and the risks associated with each class of capital. The Company monitors capital on the basis of following gearing ratio, which is net debt divided by total capital plus debt
(B) Geraring ratio
The gearing ratio at end of the reporting period was as follows.
3 a) ACCOUNTING OF REAL ESTATE PROJECTS UNDERTAKEN UP TO 31st March, 2004
The actual receipts and installments due of Rs.38,272,964 (previous year Rs.38,640,728) for the year from booking of plots/constructed properties in ongoing real estate projects has been credited to revenue from operations. Against this, after ascertaining profits on estimate basis as per accounting policy no. 1(XII)(A)(a) the balance of eighty percent is adjusted in real estate project expenditure. The final adjustment of profit/loss is being made on completion of respective project(s).
b) CONSTRUCTION CONTRACTS
c) The construction material includes mild steel, cement, sand and other construction material. During the year the company dealt in mild steel only (refer Note No. 30 & 32).
d) Disclosure in respect of projects which is covered under the Revised Guidance Note issued by the Institute of Chartered Accountants of India on âAccounting for Real Estate Transactions (Revised 2012)â and where revenue recognition has been stated as per accounting policy no.1(XII)(A)(b)&(c).
e) Deferred tax assets are recognised for carried forward business loss and unabsorbed depreciation during the year where there are foreseeable profits in future based on the agreement to sell already entered with buyers, which in the opinion of management indicates virtual certainity supported by convincing evidence that sufficient future taxable income will be available as the construction progresses against which such deferred tax assets can be realaised.
f) The Company had earlier sold some of its investments and recognized sale based on the consideration amount received against such sale as well as contractual arrangement thereof. However, during the financial year ending 31st March 2016, the Company reversed this sale transaction in its books due to revised contractual understanding and accordingly, the consideration received from the purchaser had been shown as amount payable by the Company
4. BENEFITS TO EMPLOYEES:
As per Ind AS 19, âEmployee benefitsâ, the disclosures of employee benefits are as given below:
a) Defined contribution plan
Contributions recognized as expense for the year are as under:
b) Defined benefit plan
The cost of providing gratuity and long term leave encashment are determined using the projected unit credit method on the base of actuarial valuation techniques conducted at the end of the financial year.
The following tables summarize the component of net benefit expense in respect of gratuity and leave encashment recognized in the statement of profit and loss and balance sheet as per actuarial valuation as on 31st March 2017.
5. SEGMENT REPORTING
Segment wise revenue, results & other information
The company is primarily in the business of real estate development and related activities including construction, consultancy and rentals etc. Further most of the business conducted is within the geographical boundaries of India.
In view of the above, in the opinion of the management and based on the organizational and internal reporting structure, the companyâs business activities as described above are subject to similar risks and returns. Further, since the business activities undertaken by the company are substantiating within India, in the opinion of the management, the business environment in India is considered to have similar risks and returns. Consequently, the companyâs business activities primarily represent a single business segment and the companyâs operations in India represent a single geographical segment.
6. LEASED ASSETS:
a) Operating lease taken:
Operating lease obligations: The company has taken cars/ office equipments on operating lease basis. The lease rentals are payable by the company on a monthly basis. Future minimum lease rentals payable as at 31 st March, 2017 as per the lease agreements are as under:
b) Operating lease given:
i) Details of assets given on operating lease:
ii) The company has given buildings on operating lease basis. The lease rentals are receivable by the company on a monthly basis. Future minimum lease rentals receivable as at 31st March, 2017 as per the lease agreements are as under:
Lease income recognized in the statement of profit and loss is Rs.142,839,000 (previous year Rs.3,374,000)
c) Finance lease :
The company has acquired plant and machinery and vehicles under finance lease with the respective underlying assets as security. Minimum lease payments (MLP) outstanding in respect of these assets are as follows :
7. Details of Specified Bank Notes (âSBNsâ) held and transacted during the period from 08th November 2016 to 31st December 2016 as defined in MCA notification G.S.R. 308 (E) dated March 31, 2017 provided in the table below:
8. CONTINGENT LIABILITIES AND COMMITMENTS (TO THE EXTENT NOT PROVIDED FOR)
I. Claims against company not acknowledged as debt
Refer Accounting policy No. XII, according to which the contract revenue on account of interest on delayed payment by customers and expenditure on account of compensation/ penalty for project delays are accounted for at the time of acceptance/ settlement with the customers due to uncertainties with regard to determination of amount receivable/ payable. As per Guidance Note on Real Estate Accounting read with paragraph 11(c) of Accounting Standard 7 - Construction Contracts, the amount of contract revenue may decrease as a result of penalties arising from delays caused by the contractor in the completion of the contract. Company is of the firm opinion that no significant liability has devolved upon them on account of such delays/ penalties and even in some cases where such penalties may contractually have arisen, the corresponding interest on delayed payment by customers is sufficient to nullify the impact. Further, in certain cases, penalty towards confirmed delays are adjusted with customer dues receivable, against excess area sold to customers.
c) Income tax matter in dispute (financial year 2004-05) pending in appeal: Rs.7,363,246 (previous year Rs.7,363,246), (financial year 2006-07) pending in appeal: Rs.222,484,964 (previous year Rs.222,484,964) (Amount paid under protest by the company : Rs.169,379,967), (financial year 2009-10) pending in appeal: Rs.3,025,191,760 (previous year Rs.3,025,191,760) (Amount paid under protest by the company : Rs.897,324,472), (financial year 2010-11) pending in appeal: Rs.1,188,242,280 (previous year Rs.1,188,242,280) (Amount paid under protest by the company : Rs.222,575,821), (financial year 2011-12) pending in appeal: Rs.824,043,190 (previous year Rs.824,043,190) (Amount paid under protest by the company : Rs.68,522,620), (financial year 201213) pending in appeal: Rs.1,137,095,370 (previous year Rs.1,137,095,370) Vide notice u/s 281B of the Income tax Act, 1961 dated 06/02/2013, 2,237,030 equity shares of Carnoustie Management Pvt. Ltd. having value of Rs.3,100,545,000 and 1,000,000 equity shares of Shivalik Ventures Pvt. Ltd. having value of Rs.10,000,000,000 held by the company have been attached.
Income Tax (TDS) matter in dispute (financial year 2007-08) pending in appeal: Rs.16,219,162 (previous year Rs.16,219,162), (financial year 2011-12) pending in appeal: Rs.116,196,935 (previous year Rs.116,196,935), (financial year 2012-13) pending in appeal: Rs.168,599,180 (previous year Rs.168,599,180), (financial year 2013-14) pending in appeal: Rs.200,077,281 (previous year Rs. NIL).
d) Sales tax matter in dispute: (financial year 2005-06) pending in appeal : Rs.7,300,428 (previous year Rs.7,300,428) (Amount paid under protest by the company : Rs.7,300,428); (financial year 2011 -12) pending in appeal : Rs.281,988,670 (previous year Rs.281,988,670); (financial year 2012-13) pending in appeal : Rs.163,802,119 (previous year Rs.163,802,119)
e) Service tax matter in dispute: (for the period 01/12/2005-31/07/2007): Rs.7,260,129 (previous year Rs.7,260,129), (financial year 2012-13) pending in appeal: Rs.93,494,668 (previous year Rs.93,494,668)
II. Guarantees
III. Commitments
b) Investment in 1,000,000 equity shares of Rs.10 each at a premium of Rs.9,990 per share aggregating of Rs.10,000,000,000 has been made in joint venture company, Shivalik Ventures Pvt. Ltd. An amount of Rs.4,916,200,000 has been paid against the allotment of fully paid-up shares. The balance securities premium of Rs.5,083,800,000 will be accounted for on payment.
e) The Company had received an Arbitral award dated 6th July 2012 passed by the London Court of International Arbitration (LCIA) wherein the arbitration tribunal had directed the company to invest USD 298,382,949.34 (Previous year USD 298,382,949.34) equivalent to Rs.19,346,732,699 (Previous year Rs.19,792,606,340) in Kerrush Investments Ltd. (Mauritius). The High Court of Justice, Queenâs Bench Division, Commercial Court London had confirmed the said Award.
Though the Company believed, on the basis of legal advice, that the said award is not enforceable in India on various grounds, including, but not limited to lack of jurisdiction by the LCIA appointed Arbitral tribunal to pass the said award, the aggrieved party filed a petition with Honâble High Court of Delhi for enforceability of the said Award. The Honâble High Court of Delhi has passed an order in the case instant.
Based on its own assessment and legal advice received, the Company is sanguine & strongly believes that its stand taken in this matter will be vindicated in the Honâble Supreme Court. The Company is preparing for filing the SLP in the Honâble Supreme Court against the said Order of the Honâble High Court of Delhi.
Moreover, in case the Company is required to make the aforesaid investment into Kerrush Investments Ltd. (Mauritius), its economic interest in the SRA project in Santacruz Mumbai shall stand increased proportionately thereby creating a substantial asset for the Company with an immense development potential.
f) Investment in shares of subsidiaries amounting to Rs.174,146,060 (Previous year Rs.181,696,060) are pledged as securities against loan taken by the company. Investment in shares of joint ventures amounting to Rs.77,675,000 (Previous year Rs.77,500,000) are pledged as securities against loan taken by the company and its joint venture. Investment of subsidiary in the shares of joint ventures of the subsidiary amounting to Rs. NIL (Previous year Rs. NIL) pledged as securities against loan taken by the company. Investment of subsidiaries in the shares of its associates amounting to Rs.245,000 (Previous year Rs.245,000) pledged as securities against loan taken by the company.
9. ACCOUNTING OF PROJECTS WITH CO-DEVELOPER
The company is developing certain projects jointly with Pioneer Urban Infrastructure Limited and its other group companies. All the development expenses and sale proceeds booked during the year are transferred to the co-developer at the year end in proportion to share of actual land pooled by each developer.
10. The company had availed rupee term loan facility from a public financial institution which was inter alia secured by the land allotted to the companyâs subsidiary. Subsequently, as per the terms of allotment, correction in the lease deed was carried out to allot land to a special purpose company, however, no action has been taken for consequent modifications in the mortgage deed. During the financial year 2013-14, the company received a notice under Section 13(4) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) from the financial institution for taking notional possession of the said land provided as security, by alleging default in repayment of the said loan facility. The detail of loans and overdue amount is given in Note 21 to the standalone Ind AS financial statements. The company has been legally advised that this notice is not tenable in terms of the provision of SARFAESI Act and therefore, the Company has challenged the same by filing an application before the Honâable Debt Recovery Tribunal, Lucknow (DRT). Pending the matter before DRT for final decision, the financial institution issued e-auction sale notice dated 05.04.2016 for sale of the aforesaid land, and consequent to this sale notice, concerned authority, which has allotted this land to the companyâs subsidiary, also issued show cause notice dated 11.04.2016 for cancellation of allotment thereof. On the request of the company, DRT has stayed the auction of land and cancellation of allotment thereof, with a direction to all the parties to maintain status quo in respect of said land.
11. The company had issued the secured non-convertible debentures on private placement basis disclosed under note 27 to the financial statement to a lending financial institution and these debentures are inter alia secured by the charge on immovable properties of the company and its subsidiaries. However, as on 31st March 2017, these non-convertible debentures (including interest accrued thereon) was pending for redemption for a period of more than one year from their respective due date. The lending financial institution has initiated action under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) for recovery of amount pending against these debentures. The company has been legally advised and has also obtained an opinion that default in redemption of privately placed debentures subscribed by the financial institutions which are lenders of money or default in payment of interest thereon, will not attract the provisions of Section 164(2)(b) of the Companies Act, 2013 or Section 274(1)(g) of the erstwhile Companies Act, 1956.
12. Pursuant to Section 74(2) of the Companies Act, 2013, the Company had made an application to the Honâble Company Law Board (subsequently replaced by the Honâble National Company Law Tribunal, New Delhi) seeking extension of time for repayment of the outstanding public deposits (including interest thereon) as is considered reasonable. The Company had also identified and earmarked 6 (six) unencumbered land parcels for sale and utilization of the sale proceeds thereof for repayment of the aforesaid outstanding deposits. However, during the financial year under review, the Honâble National Company Law Tribunal, New Delhi (NCLT) vide its order dated 04.07.2016 dismissed the said application. On appeal against the said order, the Honâble National Company Law Appellate Tribunal, New Delhi (NCLT) vide its order dated 03.11.2016 extended the date of repayment of deposits upto 31.12.2016. Subsequently, the said appeal was also disposed off by the Honâble NCLT vide its order dated 31.01.2017 without granting any further extension of time.
As explained and represented by management, the Company is making best possible efforts for sale of the land parcels earmarked for repayment of the deposits but such sale process is taking time due to global economic recession and liquidity crisis, particularly, in the real estate sector of India. However, regardless of these adverse circumstances and difficulties, the management has represented that they are committed to repay all the public deposits along with interest thereon.
Considering that the management has not been able to comply with the directions given by the Honâble CLB, NCLT and NCLT to repay the deposits within prescribed time-period, the Registrar of Companies, New Delhi has filed prosecution against the Company and its executive directors and key managerial personnel before the Ld. Special Court, Dwarka District Court, New Delhi. However, the Honâble High Court of Delhi has stayed the said prosecution. The company is of the firm belief that there shall be no additional penalties in this matter. However the company is unable to evaluate the likelihood of penalties/ strictures or further liabilities, if any on the Company. Accordingly, impact, if any, of the above, on the stand alone financials is currently not ascertainable.
13. a) The Company through its subsidiary, viz. Unitech Vizag Projects Limited (âUVPLâ), successfully submitted bid to Andhra Pradesh Industrial Infrastructure Corporation Limited (âAPIICâ) for development of an Integrated Vizag Knowledge City at Vizag for which Rs.2,750,000,000 including EMD and project development expenses has been paid by the Company on prorata of the acreage measurement basis and a development agreement was also signed with APIIC. The Company vide Letter of Award dated 24th Sept, 2007 was allotted 1750 acres of land in Vizag. Subsequently, UVPL got the letter from APIIC for rescinding the development agreement against which application has been filed under section 9 of the Arbitration and Conciliation Act, 1996 (âthe Actâ) before the ld. court of XI Additional Chief Judge, City Civil Court at Hyderabad to stay the operation of the letter. In riApril 2014, the Company and UVPL have already invoked the arbitration clause and also filed an application under Section 11 of the Act for appointment of arbitrator before the Honâble High Court of Andhra Pradesh at Hyderabad and the same is pending for adjudication. The said application is pending for filing of reply by APIIC. The Company also filed an interlocutory application in continuation to pending Section 9 application before the ld. City Civil Court, Hyderabad to restrain APIIC from creating any third party rights with regard to the aforesaid project. Arguments have been concluded in this matter and order has been reserved by the ld. Court. After considering the circumstances and legal advice obtained by the management, the company is confident that the letter issued by APIIC is not legally tenable and it will not adversely affect the companyâs investment, and accordingly no provision has been made in the books of account. The Company is also taking appropriate action for refund of the amount already paid by the Company to APIIC with interest and damages.
b) The Company, vide Letter of Award dated 28th November 2007, was allotted 350 acres of land in Nadergul Village, Saroornagar Mandal, RR District, Hyderabad (Andhra Pradesh) by Andhra Pradesh Industrial Infrastructure Corporation Limited (âAPIICâ). In terms of the Letter of Award, the entire purchase consideration of Rs.1,600,000,000 including EMD has already been paid to APIIC and a development agreement dated 19th August 2008 has been signed with APIIC to develop the said land through Unitech Hyderabad Township Ltd., a wholly-owned subsidiary of the Company. Recently, the Company came to know that the Honâble Supreme Court vide its order 9th October 2015 has quashed the acquisition of the aforesaid land by the Government of Andhra Pradesh from the landowners and transfer of the same to TSIIC(erstwhile APIIC). The Company is taking appropriate action for refund of the amount already paid by the Company to TSIIC(erstwhile APIIC)with interest and damages as per development agreement terms and conditions.
c) The company was awarded a project for development of amusement cum theme park in Chandigarh by Chandigarh administration. The said development agreement was unilaterally and illegally terminated by the Chandigarh administration. The company filed a writ petition before Honâble High Court of Punjab & Haryana challenging the termination of development agreement. The matter was referred for arbitration and the matter is pending adjudication before the panel of three arbitrators. The company has concluded its evidence. The company has a good case and accordingly no provision has been considered necessary.
14. The company has non-current investments (long term investments) in, and loans and advances given to, some subsidiaries (including advance for purchase of shares for proposed subsidiaries) which have accumulated losses. These subsidiaries have incurred loss during the current and previous year(s) and that current liabilities of these subsidiaries also exceed their current assets as at the respective balance sheet dates. Management has evaluated this matter and is of the firm view that the diminution, if any, even if it exists is only temporary and that sufficient efforts are being undertaken to revive the said subsidiaries in the foreseeable future so as to recover carrying value of the investment. Further, management believes that the loans and advances given to these companies are considered good and recoverable based on the future projects in these subsidiaries and accordingly no provision other than those already accounted for, has been considered necessary.
15. Advances for purchase of land, projects pending commencement and to joint ventures and collaborators amounting to Rs.6,491,240,803 (previous year Rs.6,508,764,168) included under the head âAdvances for purchase of land and project pending commencementâ in Note 18 have been given in the normal course of business to land owning companies, collaborators, projects or for purchase of land. Further Rs.454,023,365 (previous year Rs.476,179,157) has been recovered / adjusted during the current financial year. The management has been putting a constructive and sincere effort to recover / adjust the said advances and has been successful in recovering / adjusting a significant amount out of the total advances, so no provision is necessary to be created for the outstanding advances as at the balance sheet date. Further, the management is confident to recover / adjust the balance outstanding amount in the foreseeable future.
16. The Company was allotted land parcel admeasuring 100 acres, bearing plot no. GH-01 in Sector MU of Greater Noida for construction and development of residential/ group housing project, and a lease deed dated 22.01.2007 was signed in this regard with Greater Noida Industrial Development Authority (âGNIDAâ).
Due to downward trend in the real estate market and liquidity crisis, the Company made several requests to GNIDA for re-schedulement of the dues payable against the aforesaid land. However, GNIDA issued a cancellation letter bearing no. Greno/Builders/2015/1516 dated 18.11.2015 to the Company cancelling allotment of the aforesaid land. The Company submitted a representation letter dated 01.12.2015 to GNIDA against this cancellation letter. Considering the amount already invested and significant efforts already made by the Company for development of this project including amounts paid to GNIDA from time to time and the plots already allotted to the customers in this project resulting in creation of third party interest, the Company has requested GNIDA in its representation letter dated 01.12.2015 to allow the Company to retain 25 acres of land parcel out of total 100 acres and to adjust the amount already paid by the Company against the land price of 25 acres and the remaining surplus amount against other dues payable by the Company to GNIDA. The said request is still under consideration with GNIDA.
Further, the customersâ association in the aforesaid project has filed a complaint before the Honâble National Consumer Dispute Redressal Commission, New Delhi. The Company brought this fact to the notice of GNIDA vide its letter dated 12.05.2016. The customersâ association has also filed a writ before the Honâble High Court at Allahabad wherein GNIDA and the Company have been made parties. Considering the fact that matter pertaining to cancellation of allotment of the aforesaid land is sub-judice, as per the legal advice obtained by the management, the Company believes that cancellation order of the entire land parcel of 100 acres issued by GNIDA will not hold good.
17. The Company, in the year 1979, was granted certain relaxations under the Employeesâ Provident Fund Scheme by the office of Regional Provident Fund Commissioner Nehru Place New Delhi . However, with effect from 31.10.2014, these relaxations have been withdrawn by the Regional Provident Fund Commissioner, Delhi (South) vide an order dated 01.12.2014, with a direction to transfer the entire past accumulated funds with the PF Trust, viz. United Technical Consultants Provident Fund, to the Office of the Employeesâ Provident Fund Organisation (EPFO).
As on 31.10.2014, total dues towards the amount payable to its members by the PF Trust were calculated to Rs.986,117,427 vide order dated 22.04.2016 passed by the Regional Provident Fund Commissioner which were required to be transferred to the office of EPFO. The Company has deposited the said amount .
Further a sum of Rs.225,630,283 pertaining to provident fund and pension scheme is pending for deposit from May 2015 till March 2017. The Company intends to deposit the same in course of time.
18. PREVIOUS YEAR FIGURES
Previous year figures have been regrouped, rearranged and reclassified wherever considered necessary.
Mar 31, 2016
1. a) ACCOUNTING OF REAL ESTATE PROJECTS UNDERTAKEN UP TO 31st March, 2004
The actual receipts and installments due of Rs, 38,640,728 (previous year Rs, 3,253,917) for the year from booking of plots/constructed properties in ongoing real estate projects has been credited to revenue from operations. Against this, after ascertaining profits on estimate basis as per accounting policy no. 1(XII)(A)(a) the balance of eighty percent is adjusted in real estate project expenditure. The final adjustment of profit / loss is being made on completion of respective project(s).
c) The construction material includes mild steel, cement, sand and other construction material. During the year the company dealt in mild steel only (refer Note No. 21 & 25).
d) Disclosure in respect of projects which is covered under the Revised Guidance Note issued by the Institute of Chartered Accountants of India on "Accounting for Real Estate Transactions (Revised 2012)" and where revenue recognition has been stated as per accounting policy no.1(XII) (A)(b)&(c).
e) Deferred tax assets are recognized for carried forward business loss and unabsorbed depreciation during the year where there are foreseeable profits in future based on the agreement to sell already entered with buyers, which in the opinion of management indicates virtual certainty supported by convincing evidence that sufficient future taxable income will be available as the construction progresses against which such deferred tax assets can be realized.
f) The Company was allotted, in 2011, a land parcel by the Noida Authority but due to land acquisition issues, possession thereof was offered in 2014 subject to payment of balance consideration. Considering its liquidity position and to avoid cancellation of land allotment and forfeiture of advance payment made to the Noida Authority, the Company decided to dispose off part of the said land to a third party. In 2015, the Company has signed sub-lease deeds for part of the land in favour of third party and utilized consideration for part payment of outstanding dues of the Noida Authority against this land. Accordingly, during the year under review, land advance has been shown as payment made for land acquisition and this transaction has resulted in profit to the Company.
g) The Company had earlier sold some of its investments and recognized sale based on the consideration amount received against such sale as well as contractual arrangement there. However, during the year under review, the Company reversed this sale transaction in its books due to revised contractual understanding and accordingly, the consideration received from the purchaser has been shown as amount payable by the Company.
b) Defined benefit plan
The cost of providing gratuity and long term leave encashment are determined using the projected unit credit method on the base of actuarial valuation techniques conducted at the end of the financial year.
The following tables summarize the component of net benefit expense in respect of gratuity and leave encashment recognized in the statement of profit and loss and balance sheet as per actuarial valuation as on 31st March'' 2016.
2. SEGMENT REPORTING :
Segment wise revenue, results & other information
The company is primarily in the business of real estate development and related activities including construction, consultancy and rentals etc. Further most of the business conducted is within the geographical boundaries of India.
In view of the above, in the opinion of the management and based on the organizational and internal reporting structure, the company''s business activities as described above are subject to similar risks and returns. Further, since the business activities undertaken by the company are substantiating within India, in the opinion of the management, the business environment in India is considered to have similar risks and returns. Consequently, the company''s business activities primarily represent a single business segment and the company''s operations in India represent a single geographical segment.
3. RELATED PARTY DISCLOSURES
A) Name of related parties and nature of relationship where control exists:
Wholly Owned Subsidiaries:
Abohar Builders Pvt. Ltd.*_
Aditya Properties Pvt. Ltd.*
Agmon Builders Pvt. Ltd.* (up to 14.10.2014) Agmon Projects Pvt. Ltd.*
Akola Properties Ltd.
Algoa Properties Pvt. Ltd.*
Alice Builders Pvt. Ltd.
Alkosi Ltd.
Aller Properties Pvt. Ltd.
Alor Golf Course Pvt. Ltd.*
Alor Maintenance Pvt. Ltd.*
Alor Projects Pvt. Ltd.*
Alor Recreation Pvt. Ltd.*
Amaro Developers Pvt. Ltd.
Amarprem Estates Pvt. Ltd.
Amur Developers Pvt. Ltd.*
Andes Estates Pvt. Ltd.
Angul Properties Pvt. Ltd.
Arahan Properties Pvt. Ltd.
Arcadia Build- Tech Ltd.
Arcadia Projects Pvt. Ltd.*
Ardent Build-Tech Ltd.*
Askot Builders Pvt. Ltd.
Avril Properties Pvt. Ltd. (up to 03.11.2015) Azores Properties Ltd.
Bageris Ltd.
Bengal Unitech Universal Siliguri Projects Ltd.* Bengal Unitech Universal Townscape Ltd.* Bolemat Ltd.
Boracim Ltd.
Broomfield Builders Pvt. Ltd.*
Broomfield Developers Pvt. Ltd.*
Brucosa Ltd.
Burley Holdings Ltd.
Bynar Properties Pvt. Ltd.
Cape Developers Pvt. Ltd.
Cardus Projects Pvt. Ltd.*
Chintpurni Constructions Pvt. Ltd. (from 27.05.2015)
Wholly Owned Subsidiaries:
Clarence Projects Pvt. Ltd.
Clover Projects Pvt. Ltd.
Coleus Developers Pvt.Ltd.
Colossal Infra-Developers Pvt. Ltd.* (up to
14.10.2014)_
Colossal Projects Pvt. Ltd.*
Comegenic Ltd.
Comfrey Developers Pvt. Ltd.
Cordia Projects Pvt. Ltd.
Crimson Developers Pvt. Ltd.
Croton Developers Pvt. Ltd.
Crowbel Ltd.
Dantas Properties Pvt. Ltd.*
Deoria Properties Ltd.*
Deoria Realty Pvt. Ltd.*
Devoke Developers Pvt. Ltd*
Devon Builders Pvt. Ltd.*
Dhaulagiri Builders Pvt. Ltd.
Dhruva Realty Projects Ltd.*
Dibang Properties Pvt. Ltd.*
Drass Projects Pvt. Ltd.*
Elbe Builders Pvt. Ltd.*
Elbrus Builders Pvt. Ltd.
Elbrus Developers Pvt. Ltd.
Elbrus Properties Pvt. Ltd.
Elixir Hospitality Management Ltd. *
Empecom Corporation Erebus Projects Pvt. Ltd.
Erica Projects Pvt. Ltd.
Erode Projects Pvt. Ltd.* (up to 15.03.2015) Falcon Projects Pvt. Ltd. (up to 14.10.2014)
Firisa Holdings Ltd.
Flores Projects Pvt. Ltd.*
Flores Properties Ltd.*
Flores Unitech Wireless Pvt. Ltd.
(up to 14.10.2014)
Girnar Infrastructures Pvt. Ltd.*
Global Perspectives Ltd.*
Glenmore Builders Pvt. Ltd. (from 27.05.2015)
Wholly Owned Subsidiaries:
Gramhuge Holdings Ltd.
Grandeur Real tech Developers Pvt. Ltd.* Greenwood Projects Pvt. Ltd.*
Gretemia Holdings Ltd.*
Halley Developers Pvt. Ltd.
Halley Projects Pvt. Ltd.
Harsil Builders Pvt. Ltd.
Harsil Properties Pvt. Ltd.*_
Hassan Properties Pvt. Ltd.
Hatsar Estates Pvt. Ltd.*
Havelock Estates Pvt. Ltd.*
Havelock Investments Ltd.*
Havelock Realtors Ltd.
Havelock Schools Ltd.* (up to 09.09.15)
High Strength Infra-Developers Pvt. Ltd. (up to
14.10.2014)
High Strength Projects Pvt. Ltd.
High Vision Healthcare Pvt. Ltd. (up to
14.10.2014_)_
ILam Developers Pvt. Ltd.* (up to 14.10.2014) Impactlan Ltd.
Insecond Ltd.
Jalore Properties Pvt Ltd.*
Jorhat Properties Pvt. Ltd.
Kerria Projects Pvt. Ltd.
Khatu Shyamji Infraventures Pvt. Ltd.*
Khatu Shyamji Infratech Pvt. Ltd.* (from
26.06.2014)
Kolkata International Convention Center Ltd. (from 29.09.2015)
Konar Developers Pvt. Ltd.*
Kortel Ltd.
Koshi Builders Pvt. Ltd.
Landscape Builders Ltd.*
Lavender Developers Pvt. Ltd.
Lavender Projects Pvt. Ltd.*
Madison Builders Pvt. Ltd.*
Mahoba Builders Ltd.*
Mahoba Schools Ltd.*
Wholly Owned Subsidiaries:
Manas Realty Projects Pvt. Ltd.*
Mandarin Developers Pvt. Ltd.
Mandarin Projects Pvt. Ltd. (up to 14.10.2014) Mansar Properties Pvt. Ltd.
Marine Builders Pvt. Ltd.
Masla Builders Pvt. Ltd.
Mayurdhwaj Projects Pvt. Ltd.*
Medlar Developers Pvt. Ltd.
Medwyn Builders Pvt. Ltd. *
MHW Hospitality Ltd. (up to 30.03.2015) Moonstone Projects Pvt. Ltd.*
Moore Builders Pvt. Ltd.*
Mount Everest Projects Pvt. Ltd.* (up to 25.10.15)
Munros Projects Pvt. Ltd.
Nectrus Ltd.
New India Construction Co. Ltd.*
Nirvana Real Estate Projects Ltd.
Nuwell Ltd.
Ojos Developers Pvt. Ltd.* (up to 09.03.2015) Onega Properties Pvt. Ltd.
Panchganga Projects Ltd.*
Panicum Projects Pvt. Ltd. (up to 14.10.2014) Pinnacle Holdings Ltd.
Plassey Builders Pvt. Ltd.
Prasunder Estates Pvt. Ltd. (up to 30.03.2015) Primrose Developers Pvt. Ltd.*
Purus Projects Pvt. Ltd.*
Purus Properties Pvt. Ltd.
QnS Facility Management Pvt. Ltd.*
Quadrangle Estates Pvt. Ltd.*
Reglina Holdings Ltd.
Rhine Infrastructures Pvt. Ltd.
Risster Holdings Ltd.
Robinia Developers Pvt. Ltd.*
Ruhi Construction Co. Ltd.*
Sabarmati Projects Pvt. Ltd.
Samay Properties Pvt. Ltd.
Sandwood Builders & Developers Pvt. Ltd. Sangla Properties Pvt. Ltd.*
Sankoo Builders Pvt. Ltd.*
Sankoo Developers Pvt. Ltd.* (up to
14.10.2014)
Sanyog Builders Ltd.*
Sanyog Properties Pvt. Ltd.
Sarnath Realtors Ltd.*
Serveia Holdings Ltd.
Seyram Ltd.
Shri Khatu Shyamji Infra Promoters Pvt. Ltd.*
Shrishti Buildwell Pvt. Ltd.*_
Simpson Estates Pvt. Ltd.
Sirur Developers Pvt. Ltd.* (up to 22.02.2015) Somerville Developers Ltd.*
Spanwave Services Ltd.
Sublime Developers Pvt. Ltd.
Wholly Owned Subsidiaries:
Sublime Properties Pvt. Ltd.*
Supernal Corrugation India Ltd.*
Surfware Consultants Ltd.
Tabas Estates Pvt. Ltd.
Technosolid Ltd.
Transdula Ltd.
Uni Homes Pvt. Ltd.*
Unitech Acorus Projects Pvt. Ltd. (up to
14.10.2014)
Unitech Agra Hi-Tech Township Ltd.*
Unitech Alice Projects Pvt. Ltd.
Unitech Ardent Projects Pvt. Ltd.*
Unitech Builders & Projects Ltd.*
Unitech Builders Ltd.*
Unitech Buildwell Pvt. Ltd.*
Unitech Business Parks Ltd.*
Unitech Capital Pvt. Ltd.*
Unitech Chandra Foundation*
Unitech Colossal Projects Pvt. Ltd.*
Unitech Commercial & Residential Projects
Pvt. Ltd._
Unitech Country Club Ltd.*
Unitech Cynara Projects Pvt. Ltd.
Unitech Developers & Hotels Pvt. Ltd.*
Unitech Global Ltd.
Unitech High Vision Projects Ltd.*
Unitech Hi-Tech Builders Pvt. Ltd.
Unitech Hi-Tech Projects Pvt. Ltd.*(up to
27.01.2015 )_
Unitech Holdings Ltd.*
Unitech Hotel Services Pvt. Ltd.*
Unitech Hotels & Projects Ltd.
Unitech Hotels Ltd.
Unitech Hyderabad Projects Ltd.*
Unitech Hyderabad Township Ltd.*
Unitech Industries & Estates Pvt. Ltd.*
Unitech Industries Ltd.*
Unitech Infra Ltd.*
Unitech Infra-Developers Ltd.
Unitech Infra-Projects Pvt. Ltd. (unto
14.10.2014 )_
Unitech Infra-Properties Ltd.
Unitech International Services JLT (from
17.11.2013 to 30.03.2015)_
Unitech Kochi-SEZ Ltd.*
Unitech Konar Projects Pvt. Ltd.
Unitech Landscape Projects Pvt. Ltd. (up to
15.03.2015 )_
Unitech Malls Ltd.
Unitech Manas Projects Pvt. Ltd.
Unitech Miraj Projects Pvt. Ltd.
Unitech Nelson Projects Pvt. Ltd.
Unitech Overseas Ltd.
Unitech Power Distribution Pvt. Ltd. (up to
14.10.2014)
Wholly Owned Subsidiaries:
Unitech Power Projects Pvt. Ltd.* (up to
14.10.2014 )_
Unitech Power Pvt. Ltd. (up to 14.10.2014) Unitech Power Transmission Ltd.*
Unitech Real Estate Builders Ltd.*
Unitech Real Estate Developers Ltd. (up to
30.03.2015 )_
Unitech Real Estate Management Pvt. Ltd.* Unitech Real-Tech Properties Ltd.
Unitech Realty Builders Pvt. Ltd.*
Unitech Realty Developers Ltd.*
Unitech Realty Estates Pvt. Ltd. (up to
08.03.2015 )_
Unitech Realty Pvt. Ltd.*
Unitech Realty Ventures Ltd Unitech Reliable Projects Pvt. Ltd.*
Unitech Residential Resorts Ltd.*
Unitech Samus Projects Pvt. Ltd.
Unitech Universal Developers Pvt. Ltd. (up to
14.10.2014 )_
Unitech Universal Hotels Pvt. Ltd. (up to
14.10.2014)
Unitech Universal Simpson Hotels Pvt. Ltd.
(up to 14.10.2014)_
Unitech Valdel Hotels Pvt. Ltd.*
Unitech Varanasi Hi-Tech Township Ltd. (up to
14.10.2014 )_
Unitech Vizag Projects Ltd.*
Volga Realtors Pvt Ltd. (up to 14.10.2014) Zanskar Builders Pvt. Ltd.* ~
Zanskar Projects Pvt. Ltd. (up to 14.10.2014) Zanskar Realtors Pvt. Ltd.*
Zanskar Realty Pvt. Ltd.
Zimuret Ltd.
Other Subsidiaries:
Bengal Unitech Hospitality Pvt. Ltd.
Bengal Unitech Universal Infrastructures (P)
Ltd.*_
Bengal Universal Consultants Pvt. Ltd.*
Gurgaon Recreation Park Ltd.*
Havelock Properties Ltd.* (up to 06.05.2015) Ojos Developers Pvt. Ltd.* (from 10.03.2015) Unitech Acacia Projects Pvt. Ltd.*
Unitech Build-Con Pvt. Ltd.*
Unitech Infra-Con Ltd.* (from 07.05.2015) Unitech Hi-Tech Developers Ltd.*
Unitech Hospitality Services Ltd.*
Unitech Hotels Pvt. Ltd.*
Unitech Pioneer Nirvana Recreation Pvt. Ltd.* Unitech - Pioneer Recreation Ltd.*
Vectex Ltd.
Unitech Infopark Ltd.
Unitech Libya for General Contracting and Real Estate Investment
B) Name and relationship of related parties where transaction exists:
i) Subsidiaries : in the table mentioned in (A) above with
ii) Joint ventures :
Arihant Unitech Realty Projects Ltd. Shivalik Ventures Pvt. Ltd.
International Recreation Parks Pvt. Ltd. Uni-Chand Builders Pvt. Ltd. (up to 30.12.2015)
MNT Buildcon Pvt. Ltd. Unitech Amusement Parks Ltd.
North Town Estates Pvt. Ltd. Unitech Sai Pvt. Ltd. (up to 25.08.2015)
Sarvmangalam Builders & Developers Pvt. Ltd. Shivalik Ventures City Developers Pvt. Ltd.
S.B. Developers Ltd. Unitech Valdel Valmark Pvt. Ltd.
Shantiniketan Properties Ltd. (up to 06.05.2015)
iii) Directors, Key Managerial Personnel (KMP) & their relatives:
Name Designation
Mr. Ramesh Chandra__Chairman_
Mr. Sanjay Chandra Managing Director
Mr. Ajay Chandra Managing Director
Mrs. Pushpa Chandra Relative of KMP
Mrs. Preeti Chandra Relative of KMP
Ms. Minoti Bahri Non Executive Director
Mr. Rahul Bahri Relative of Director
Mr. Sunil Keswani Chief Financial Officer
Mr. Deepak Jain Company Secretary
iv) Enterprises owned or significantly influenced by Directors & Key Managerial Personnel:
Bodhisattva Estates Pvt. Ltd. R.V. Techno Investments Pvt. Ltd.
Indrus Countertrade Pvt. Ltd. Unitech Advisors (India) Pvt. Ltd.
Mayfair Capital Pvt. Ltd.
In accordance with the requirement of para 26 of AS(18) ''related party disclosures'', items of similar nature have been disclosed in aggregate the type of related parties described in B above. There are no transactions, which in the opinion of the management warrants a special disclosure which effect the understanding of related party transactions on the financial statement.
5. CONTINGENT LIABILITIES AND COMMITMENTS (TO THE EXTENT NOT PROVIDED FOR)
I. Claims against company not acknowledged as debt
a) Liquidated damages and other claims by clients / customers Rs, 3,153,379,316 (previous year Rs, 1,241,610,299).
b) Compensation for delayed possession to customers: Rs, 3,928,522,000 (previous year Rs, 3,839,000,000)
Refer Accounting policy No. XII, according to which the contract revenue on account of interest on delayed payment by customers and expenditure on account of compensation/ penalty for project delays are accounted for at the time of acceptance/ settlement with the customers due to uncertainties with regard to determination of amount receivable/ payable. As per Guidance Note on Real Estate
Accounting read with paragraph 11(c) of Accounting Standard 7 - Construction Contracts, the amount of contract revenue may decrease as a result of penalties arising from delays caused by the contractor in the completion of the contract. Company is of the firm opinion that no significant liability has devolved upon them on account of such delays/ penalties and even in some cases where such penalties may contractually have arisen, the corresponding interest on delayed payment by customers is sufficient to nullify the impact. Further, in certain cases, penalty towards confirmed delays are adjusted with customer dues receivable, against excess area sold to customers.
c) Income tax matter in dispute (financial year 2004â15) pending in appeal: Rs, 7,363,246 (previous year Rs, 7,363,246), (financial year 2006â37) pending in appeal: Rs, 222,484,964 (previous year Rs, 222,484,964), (financial year 2009-10) pending in appeal: Rs, 3,025,191,760 (previous year Rs, NIL), (financial year 2010-11) pending in appeal: Rs, 1,188,242,280 (previous year Rs, NIL), (financial year 2011-12) pending in appeal: Rs, 824,043,190 (previous year Rs, 824,043,190), (financial year 2012-13) pending in appeal: Rs,1,137,095,370 (previous year Rs, NIL)
Income tax matter in dispute (financial year 2008-09): Rs, 8,729,809,740 (previous year Rs, 8,729,809,740). (Amount paid under protest by the company : Rs, 237,500,000). The Company already received the tribunal order in its favour but the appeal effect is pending. Vide notice u/s 281B of the Income tax Act, 1961 dated 06/02/2013, 2,237,030 equity shares of Carnoustie Management Pvt. Ltd. having value of Rs, 3,100,545,000 and 1,000,000 equity shares of Shivalik Ventures Pvt. Ltd. having value of Rs, 10,000,000,000 held by the company have been attached.
Income Tax (TDS) matter in dispute (financial year 2007â18) pending in appeal: Rs, 16,219,162 (previous year Rs, 16,219,162), (financial year 2011-12) pending in appeal: Rs, 116,196,935 (previous year Rs, 116,196,935), (financial year 2012-13) pending in appeal: Rs, 168,599,180 (previous year Rs, 168,599,180).
d) Sales tax matter in dispute: (financial year 2005-06) pending in appeal : Rs, 7,300,428 (previous year Rs, 7,300,428) (Amount paid under protest by the company : Rs, 7,300,428); (financial year 2011-12) pending in appeal : Rs, 281,988,670 (previous year Rs, NIL); (financial year 2012-13) pending in appeal : Rs, 163,802,119 (previous year Rs, NIL)
e) Service tax matter in dispute: (for the period 01/12/2005-31/07/2007): Rs, 7,260,129 (previous year Rs, 7,260,129), (financial year 2012-13) pending in appeal: Rs, 93,494,668 (previous year Rs, NIL)
II. Guarantees
a) In respect of bank guarantees: Rs, 2,277,603,391 (previous year Rs, 2,396,506,672) - It includes guarantees of Rs, 176,716,364 (previous year Rs, 329,767,346) in respect of subsidiaries & other companies.
b) The company has given corporate guarantees of Rs, 21,292,305,327 (previous year Rs, 36,755,725,099) for raising loans from financial institutions and banks by its subsidiaries and joint ventures.
III. Commitments
a) Capital commitments : Rs, 11,837,636 (previous year Rs, 6,958,783)
b) Investment in 1,000,000 equity shares of Rs, 10 each at a premium of Rs, 9,990 per share aggregating of Rs, 10,000,000,000 has been made in joint venture company, Shivalik Ventures Pvt. Ltd. An amount of Rs, 4,916,200,000 has been paid against the allotment of fully paid-up shares. The balance securities premium of Rs, 5,083,800,000 will be accounted for on payment.
c) The estimated amount of real estate contracts, net of advances remaining to be executed is Rs, 14,853,405,723 (Previous year Rs, 15,938,003,000)
d) Other commitments : Rs, 76,548,167 (previous year Rs, 72,331,335)
e) The company received an arbitral award dated 6th July 2012 passed by the London Court of International Arbitration (LCIA) wherein the arbitration tribunal has directed the company to invest USD 298,382,949.34 (Previous year USD 298,382,949.34) equivalent to Rs, 19,792,606,340 (Previous year Rs, 18,702,285,205) in Kerrush Investments Ltd. (Mauritius). The High Court of Justice, QueenRs,s Bench Division, Commercial Court London has confirmed the said award.
Based on the legal advice received by it, the company believes that the said award is not enforceable in India on various grounds including but not limited to lack of jurisdiction by the LCIA appointed arbitral tribunal to pass the said award. Nevertheless, in case the company is required to make the aforesaid investment into Kerrush Investments Ltd. (Mauritius), its economic interest in the SRA project in Santacruz Mumbai shall stand increased proportionately thereby creating a substantial asset for the company with an immense development potential.
f) Investment in shares of subsidiaries amounting to Rs, 181,696,060 (Previous year Rs, 33,270,600) are pledged as securities against loan taken by the company. Investment in shares of joint ventures amounting to Rs, 77,500,000 (Previous year Rs, 72,800,000) are pledged as securities against loan taken by the company and its joint venture. Investment of subsidiary in the shares of joint ventures of the subsidiary amounting to Rs, NIL (Previous year Rs, 147,925,460) pledged as securities against loan taken by the company. Investment of subsidiaries in the shares of its associates amounting to Rs, 245,000 (Previous year Rs, 245,000) pledged as securities against loan taken by the company.
6. ACCOUNTING OF PROJECTS WITH CO-DEVELOPER
The company is developing certain projects jointly with Pioneer Urban Infrastructure Limited and its other group companies. All the development expenses and sale proceeds booked during the year are transferred to the co-developer at the yearend in proportion to share of actual land pooled by each developer.
(b) Dividend remitted in foreign currency to the shareholders of the company - Rs, NIL (previous year - Rs, NIL).
7. EARNINGS IN FOREIGN CURRENCY
Receipts in respect of overseas projects Rs, NIL (previous year Rs, NIL).
8. The company had availed rupee term loan facility from a public financial institution which was inter alia secured by the land allotted to the company''s subsidiary. Subsequently, as per the terms of allotment, correction in the lease deed was carried out to allot land to a special purpose company, however, no action has been taken for consequent modifications in the mortgage deed. During the financial year 2013-14, the company received a notice under Section 13(4) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) from the financial institution for taking notional possession of the said land provided as security, by alleging default in repayment of the said loan facility. The detail of loans and overdue amount is given in Note 4(iv) to the financial statement. The company has been legally advised that this notice is not tenable in terms of the provision of SARFAESI Act and therefore, the Company has challenged the same by filing an application before the Hon''able Debt Recovery Tribunal, Luck now (DRT). Pending the matter before DRT for final decision, the financial institution issued e-auction sale notice dated 05.04.2016 for sale of the aforesaid land, and consequent to this sale notice, concerned authority, which has allotted this land to the company''s subsidiary, also issued show cause notice dated 11.04.2016 for cancellation of allotment thereof. On the request of the company, DRT has stayed the auction of land and cancellation of allotment thereof, with a direction to all the parties to maintain status quo in respect of said land.
9. The company had issued the secured non-convertible debentures on private placement basis disclosed under note 9 to the financial statement to a lending financial institution and these debentures are inter alia secured by the charge on immovable properties of the company and its subsidiaries. However, as on 31st March 2016, part of these non-convertible debentures (including interest accrued thereon) was pending for redemption for a period of more than one year from their respective due date. The lending financial institution has initiated action under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) for recovery of amount pending against these debentures. The company has been legally advised and has also obtained an opinion that default in redemption of privately placed debentures subscribed by the financial institutions which are lenders of money or default in payment of interest thereon, will not attract the provisions of Section 164(2)(b) of the Companies Act, 2013 or Section 274(1)(g) of the erstwhile Companies Act, 1956.
10. In March 2015, the company filed an application before the Hon''ble Company Law Board (CLB) under Section 74(2) of the Companies Act 2013 seeking extension of time for repayment of the deposits accepted by the company. The said petition is pending before CLB. The company has earmarked 6 (six) unencumbered land parcels which shall be sold and the entire sale proceeds thereof shall be utilized for repayment of the said deposits. The company is fully committed to repay all the deposits along with interest thereon and it is making all efforts to arrange the necessary resources required for this purpose. The outstanding amount pertaining to such deposits is disclosed under note 9 to the financial statement.
11. a) The Company through its subsidiary, viz. Unitech Vizag Projects Limited ("UVPL"), successfully submitted bid to Andhra Pradesh Industrial
Infrastructure Corporation Limited ("APIIC") for development of an Integrated Vizag Knowledge City at Vizag for which money has been advanced by the Company and a development agreement was also signed with APIIC. Subsequently, UVPL got the letter from APIIC for rescinding the development agreement against which application has been filed under section 9 of the Arbitration and Conciliation Act, 1996 ("the Act") before the ld. court of XI Additional Chief Judge, City Civil Court at Hyderabad to stay the operation of the letter. In April 2014, the Company and UVPL have already invoked the arbitration clause and also filed an application under Section 11 of the Act for appointment of Arbitrator before the Hon''ble High Court of Andhra Pradesh at Hyderabad and the same is pending for adjudication. The said application is pending for filing of reply by APIIC. The Company also filed an interlocutory application in continuation to pending Section 9 application before the ld. City Civil Court, Hyderabad to restrain APIIC from creating any third party rights with regard to the aforesaid project. Arguments have been concluded in this matter and order has been reserved by the ld. Court. After considering the circumstances and legal advice obtained by the management, the company is confident that the letter issued by APIIC is not legally tenable and it will not adversely affect the company''s investment, and accordingly no provision has been made in the books of account.
b) The Company, vide Letter of Award dated 28th November 2007, was allotted 350 acres of land in Nadergul Village, Saroornagar Mandal, RR District, Hyderabad (Andhra Pradesh) by Andhra Pradesh Industrial Infrastructure Corporation Limited ("APIIC"). In terms of the Letter of Award, the entire purchase consideration of Rs, 1,400,000,000 has already been paid to APIIC and a development agreement dated 19th August 2008 has been signed with APIIC to develop the said land through Unitech Hyderabad Township Ltd., a wholly-owned subsidiary of the Company. Recently, the Company came to know that the Hon''ble Supreme Court vide its order 9th October 2015 has quashed the acquisition of the aforesaid land by the Government of Andhra Pradesh from the landowners and transfer of the same to APIIC. The Company is taking appropriate action for refund of the amount already paid by the Company to APIIC with interest and damages.
c) The company was awarded a project for development of amusement cum theme park in Chandigarh by Chandigarh administration. The said development agreement was unilaterally and illegally terminated by the Chandigarh administration. The company filed a writ petition before Hon''ble High Court of Punjab & Haryana challenging the termination of development agreement. The matter was referred for arbitration and the matter is pending adjudication before the panel of three arbitrators. The company has concluded its evidence. The matter is next posted for 6th Aug, 2016. The company has a good case and accordingly no provision has been considered necessary.
d) The Company has received a notice under Section 19 of Recovery of Debts Due to Banks and Financial Instructions Act, 1993, filed by Financial Institution against Unitech Limited & Others. The said application has been filed before the Ld. Debts Recovery Tribunal-1, Kolkata and the next date of hearing is 2nd September 2016.
12. The company has non-current investments (long term investments) in, and loans and advances given to, some subsidiaries (including advance for purchase of shares for proposed subsidiaries) which have accumulated losses. These subsidiaries have incurred loss during the current and previous year(s) and that current liabilities of these subsidiaries also exceed their current assets as at the respective balance sheet dates. Management has evaluated this matter and is of the firm view that the diminution, if any, even if it exists is only temporary and that sufficient efforts are being undertaken to revive the said subsidiaries in the foreseeable future so as to recover carrying value of the investment. Further, management believes that the loans and advances given to these companies are considered good and recoverable based on the future projects in these subsidiaries and accordingly no provision other than those already accounted for, has been considered necessary.
13. Advances for purchase of land, projects pending commencement and to joint ventures and collaborators amounting to Rs, 6,945,264,168 (previous year - Rs, 7,242,711,244) included under the head "short term loans and advances" in Note 19 have been given in the normal course of business to land owning companies, collaborators, projects or for purchase of land. Further Rs, 297,447,076 (previous year Rs, 476,179,157) has been recovered / adjusted during the current financial year. The management has been putting a constructive and sincere effort to recover / adjust the said advances and has been successful in recovering / adjusting a significant amount out of the total advances, so no provision is necessary to be created for the outstanding advances as at the balance sheet date. Further, the management is confident to recover / adjust the balance outstanding amount in the foreseeable future.
14. The Company was allotted land parcel admeasuring 100 acres, bearing plot no. GH-01 in Sector MU of Greater Noida for construction and development of residential/ group housing project, and a lease deed dated 22.01.2007 was signed in this regard with Greater Noida Industrial Development Authority ("GNIDA").
Due to downward trend in the real estate market and liquidity crisis, the Company made several requests to GNIDA for re-schedulement of the dues payable against the aforesaid land. However, GNIDA issued a cancellation letter bearing no. Greno/Builders/2015/1516 dated 18.11.2015 to the Company cancelling allotment of the aforesaid land. The Company submitted a representation letter dated 01.12.2015 to GNIDA against this cancellation letter. Considering the amount already invested and significant efforts already made by the Company for development of this project including amounts paid to GNIDA from time to time and the plots already allotted to the customers in this project resulting in creation of third party interest, the Company has requested GNIDA in its representation letter dated 01.12.2015 to allow the Company to retain 25 acres of land parcel out of total 100 acres and to adjust the amount already paid by the Company against the land price of 25 acres and the remaining surplus amount against other dues payable by the Company to GNIDA. The said request is still under consideration with GNIDA.
Further, the customers'' association in the aforesaid project has filed a complaint before the Hon''ble National Consumer Dispute Redressal Commission, New Delhi. The Company brought this fact to the notice of GNIDA vide its letter dated 12.05.2016. The customers'' association has also filed a writ before the Hon''ble High Court at Allahabad wherein GNIDA and the Company have been made parties. Considering the fact that matter pertaining to cancellation of allotment of the aforesaid land is sub-judice, as per the legal advice obtained by the management, the Company believes that cancellation order of the entire land parcel of 100 acres issued by GNIDA will not hold good.
15. The Company, in the year 1979, was granted certain relaxations under the Employees'' Provident Fund Scheme by the office of Regional Provident Fund Commissioner Nehru Place New Delhi . However, with effect from 31.10.2014, these relaxations have been withdrawn by the Regional Provident Fund Commissioner, Delhi (South) vide an order dated 01.12.2014, with a direction to transfer the entire past accumulated funds with the PF Trust, viz. United Technical Consultants Provident Fund, to the Office of the Employees'' Provident Fund Organization (EPFO).
As on 31.10.2014, total dues towards the amount payable to its members by the PF Trust were calculated to '' 986,117,427 vide order dated 22.04.2016 passed by the Regional Provident Fund Commissioner which were required to be transferred to the office of EPFO. The Company has deposited the said amount.
Further, in addition to the aforesaid amount, the Company has deposited provident fund contributions till April 2015 with the office of EPFO and sum of '' 125,392,273 pertaining to provident fund and pension scheme is pending for deposit from May 2015 till March 2016. The Company will deposit the same in due course.
16. PREVIOUS YEAR FIGURES
Previous year figures have been regrouped, rearranged and reclassified wherever considered necessary.
Mar 31, 2015
1. a) ACCOUNTING OF REAL ESTATE PROJECTS UNDERTAKEN UP TO 31st March,
2004
The actual receipts and installments due of Rs. 3,253,917 (previous
year Rs. 65,512,192) for the year from booking of plots/constructed
properties in ongoing real estate projects has been credited to revenue
from operations. Against this, after ascertaining profits on estimate
basis as per accounting policy No. XII (A)(a) the balance of eighty
percent is adjusted in real estate project expenditure. The final
adjustment of profit/loss is being made on completion of respective
project(s).
b) The construction material includes mild steel, cement, sand and
other construction material. During the year the Company dealt in mild
steel only (refer Note No. 21 & 25).
c) Defined benefit plan
The cost of providing gratuity and long term leave encashment are
determined using the projected unit credit method on the base of
actuarial valuation techniques conducted at the end of the financial
year.
The following tables summarize the component of net benefit expense in
respect of gratuity and leave encashment recognized in the statement of
profit and loss and balance sheet as per actuarial valuation as on 31st
March' 2015
2. SEGMENT REPORTING:
Segment wise revenue, results & other information
The Company is primarily in the business of real estate development and
related activities including construction, consultancy and rentals etc.
Further most of the business conducted is within the geographical
boundaries of India.
In view of the above, in the opinion of the management and based on the
organizational and internal reporting structure, the Company's business
activities as described above are subject to similar risks and returns.
Further, since the business activities undertaken by the Company are
substantiating within India, in the opinion of the management, the
business environment in India is considered to have similar risks and
returns. Consequently, the Company's business activities primarily
represent a single business segment and the Company's operations in
India represent a single geographical segment.
3. RELATED pARTY DISCLOSURES
A) Name of related parties and nature of relationship where control
exists:
Wholly owned Subsidiaries:
Abohar Builders Pvt. Ltd.*
Aditya Properties Pvt. Ltd.*
Agmon Builders Pvt. Ltd.* (upto 14.10.2014)
Agmon Projects Pvt. Ltd.*
Akola Properties Ltd.*
Algoa Properties Pvt. Ltd.*
Alice Builders Pvt. Ltd.*
Alkosi Ltd.
Aller Properties Pvt. Ltd.*
Alor Golf Course Pvt. Ltd.*
Alor Maintenance Pvt. Ltd.*
Alor Projects Pvt. Ltd.*
Alor Recreation Pvt. Ltd.*
Amaro Developers Pvt. Ltd. *
Amarprem Estates Pvt. Ltd.*
Amur Developers Pvt. Ltd.*
Andes Estates Pvt. Ltd.*
Angul Properties Pvt. Ltd.*
Arahan Properties Pvt. Ltd.*
Wholly owned Subsidiaries:
Arcadia Build- Tech Ltd.
Arcadia Projects Pvt. Ltd.*
Ardent Build-Tech Ltd.*
Askot Builders Pvt. Ltd.*
Avril Properties Pvt. Ltd.*
Azores Properties Ltd.
Bageris Ltd.
Bengal Unitech Universal Siliguri Projects Ltd.
Bengal Unitech Universal Townscape Ltd.*
Bolemat Ltd.
Boracim Ltd.
Broomfield Builders Pvt. Ltd.*
Broomfield Developers Pvt. Ltd.*
Brucosa Ltd.
Burley Holdings Ltd.
Bynar Properties Pvt. Ltd. *
Cape Developers Pvt. Ltd.*
Cardus Projects Pvt. Ltd.*
Clarence Projects Pvt. Ltd.*
Clover Projects Pvt. Ltd.*
Coleus Developers Pvt.Ltd.
Colossal Infra-Developers Pvt. Ltd.* (upto 14.10.2014)
Wholly owned Subsidiaries:
Colossal Projects Pvt. Ltd.*
Comegenic Ltd.
Comfrey Developers Pvt. Ltd.
Cordia Projects Pvt. Ltd.*
Crimson Developers Pvt. Ltd.*
Croton Developers Pvt. Ltd.*
Crowbel Ltd.
Dantas Properties Pvt. Ltd.*
Deoria Properties Ltd.*
Deoria Realty Pvt. Ltd.*
Devoke Developers Pvt. Ltd*
Devon Builders Pvt. Ltd.*
Dhaulagiri Builders Pvt. Ltd. *
Dhruva Realty Projects Ltd.*
Dibang Properties Pvt. Ltd.*
Drass Projects Pvt. Ltd.*
Elbe Builders Pvt. Ltd.*
Elbrus Builders Pvt. Ltd.
Elbrus Developers Pvt. Ltd.*
Elbrus Properties Pvt. Ltd.*
Elixir Hospitality Management Ltd. (formerly known as Unitech
Hospitality Ltd.)*
Empecom Corporation
Wholly owned Subsidiaries:
Erebus Projects Pvt. Ltd.
Erica Projects Pvt. Ltd.*
Erode Projects Pvt. Ltd.* (upto 15.03.2015)
Falcon Projects Pvt. Ltd. (upto 14.10.2014)
Firisa Holdings Ltd.
Flores Projects Pvt. Ltd.*
Flores Properties Ltd.*
Flores Unitech Wireless Pvt. Ltd. (upto 14.10.2014)
Girnar Infrastructures Pvt. Ltd.*
Global Perspectives Ltd.*
Gramhuge Holdings Ltd.
Grandeur Real tech Developers Pvt. Ltd.* (from 27.03.2014)
Greenwood Projects Pvt. Ltd.*
Gretemia Holdings Ltd.*
Halley Developers Pvt. Ltd.*
Halley Projects Pvt. Ltd.*
Harsil Builders Pvt. Ltd.*
Harsil Properties Pvt. Ltd.*
Hassan Properties Pvt. Ltd.*
Hatsar Estates Pvt. Ltd.*
Havelock Estates Pvt. Ltd.*
Havelock Investments Ltd.*
Havelock Realtors Ltd.*
Havelock Schools Ltd.*
High Strength Infra-Developers Pvt. Ltd. (upto 14.10.2014)
High Strength Projects Pvt. Ltd.*
High Vision Healthcare Pvt. Ltd. (upto 14.10.2014)
ILam Developers Pvt. Ltd. * (upto 14.10.2014)
Impactlan Ltd.
Insecond Ltd.
Jalore Properties Pvt Ltd.*
Jorhat Properties Pvt. Ltd.*
Kerria Projects Pvt. Ltd. *
Khatu Shyamji Infraventures Pvt. Ltd.* (from 31.03.2014)
Khatu Shyamji Infratech Pvt. Ltd.* (from 26.06.2014)
Konar Developers Pvt. Ltd.*
Kortel Ltd.
Koshi Builders Pvt. Ltd.*
Landscape Builders Ltd.*
Lavender Developers Pvt. Ltd.*
Lavender Projects Pvt. Ltd.*
Madison Builders Pvt. Ltd. *
Mahoba Builders Ltd.*
Mahoba Schools Ltd.*
Manas Realty Projects Pvt. Ltd.*
Wholly owned Subsidiaries:
Mandarin Developers Pvt. Ltd.
Mandarin Projects Pvt. Ltd. (upto 14.10.2014)
Mansar Properties Pvt. Ltd.*
Marine Builders Pvt. Ltd.*
Masla Builders Pvt. Ltd.*
Mayurdhwaj Projects Pvt. Ltd.
Medlar Developers Pvt. Ltd.*
Medwyn Builders Pvt. Ltd. *
MHW Hospitality Ltd.* (upto 30.03.2015)
Moonstone Projects Pvt. Ltd.* (from 27.03.2014)
Moore Builders Pvt. Ltd.*
Mount Everest Projects Pvt. Ltd.*
Munros Projects Pvt. Ltd.
Nectrus Ltd.
New India Construction Co. Ltd.*
Nirvana Real Estate Projects Ltd.*
Nuwell Ltd.
Ojos Developers Pvt. Ltd.* (upto 09.03.2015)
Onega Properties Pvt. Ltd.*
Panchganga Projects Ltd.
Panicum Projects Pvt. Ltd. (upto 14.10.2014)
Pinnacle Holdings Ltd.* (from 07.10.2013)
Plassey Builders Pvt. Ltd.*
Prasunder Estates Pvt. Ltd.* (upto 30.03.2015)
Primrose Developers Pvt. Ltd.*
Purus Projects Pvt. Ltd.*
Purus Properties Pvt. Ltd.*
QnS Facility Management Pvt.
Ltd. (Formerly known as Unitech Property Management Pvt. Ltd.)*
Quadrangle Estates Pvt. Ltd.*
Reglina Holdings Ltd.
Rhine Infrastructures Pvt. Ltd.*
Risster Holdings Ltd.
Robinia Developers Pvt. Ltd.*
Ruhi Construction Co. Ltd.*
Sabarmati Projects Pvt. Ltd.*
Samay Properties Pvt. Ltd.*
Sandwood Builders & Developers Pvt. Ltd. *
Sangla Properties Pvt. Ltd.
Sankoo Builders Pvt. Ltd.*
Sankoo Developers Pvt. Ltd.* (upto 14.10.2014)
Sanyog Builders Ltd.*
Sanyog Properties Pvt. Ltd.*
Sarnath Realtors Ltd.*
Wholly owned Subsidiaries:
Serveia Holdings Ltd.
Seyram Ltd.
Shri Khatu Shyamji Infra Promoters Pvt. Ltd.* (from 31.03.2014)
Shrishti Buildwell Pvt. Ltd.*
Simpson Estates Pvt. Ltd.*
Sirur Developers Pvt. Ltd.* (upto 22.02.2015)
Somerville Developers Ltd.* Spanwave Services Ltd.
Sublime Developers Pvt. Ltd.
Sublime Properties Pvt. Ltd.*
Supernal Corrugation India Ltd.*
Surfware Consultants Ltd.
Tabas Estates Pvt. Ltd.*
Technosolid Ltd.
Transdula Ltd.
Uni Homes Pvt. Ltd.*
Unitech Acorus Projects Pvt. Ltd. (upto 14.10.2014)
Unitech Agra Hi-Tech Township Ltd.*
Unitech Alice Projects Pvt. Ltd.*
Unitech Ardent Projects Pvt. Ltd.*
Unitech Builders & Projects Ltd.*
Unitech Builders Ltd.*
Unitech Buildwell Pvt. Ltd*
Unitech Business Parks Ltd.*
Unitech Capital Pvt. Ltd.*
Unitech Chandra Foundation* (from 20.03.2014)
Unitech Colossal Projects Pvt. Ltd.*
Unitech Commercial & Residential
Projects Pvt. Ltd.
Unitech Country Club Ltd.*
Unitech Cynara Projects Pvt. Ltd.*
Unitech Developers & Hotels Pvt. Ltd.*
Unitech Global Ltd.
Unitech High Vision Projects Ltd.*
Unitech Hi-Tech Builders Pvt. Ltd.
Unitech Hi-Tech Projects Pvt. Ltd.* (upto 27.01.2015)
Unitech Holdings Ltd.*
Unitech Hotel Services Pvt. Ltd.
Unitech Hotels & Projects Ltd.
Unitech Hotels Ltd.
Unitech Hyderabad Projects Ltd.* (from 01.07.2013)
Unitech Hyderabad Township Ltd.*
Unitech Industries & Estates Pvt. Ltd.*
Unitech Industries Ltd.*
Unitech Infra Ltd.*
Unitech Infra-Developers Ltd.*
Wholly owned Subsidiaries:
Unitech Infra-Projects Pvt. Ltd. (upto 14.10.2014)
Unitech Infra-Properties Ltd.*
Unitech International Services JLT (from 17.11.2013 to 30.03.2015)
Unitech Kochi-SEZ Ltd.*
Unitech Konar Projects Pvt. Ltd.*
Unitech Landscape Projects Pvt. Ltd. (upto 15.03.2015)
Unitech Malls Ltd.
Unitech Manas Projects Pvt. Ltd.
Unitech Miraj Projects Pvt. Ltd.*
Unitech Nelson Projects Pvt. Ltd.
Unitech Overseas Ltd.
Unitech Power Distribution Pvt. Ltd. (upto 14.10.2014)
Unitech Power Projects Pvt. Ltd.* (upto 14.10.2014)
Unitech Power Pvt. Ltd. (upto 14.10.2014)
Unitech Power Transmission Ltd.*
Unitech Real Estate Builders Ltd.*
Unitech Real Estate Developers Ltd.* (upto 30.03.2015)
Unitech Real Estate Management Pvt. Ltd.*
Unitech Real-Tech Properties Ltd.*
Wholly owned Subsidiaries:
Unitech Realty Builders Pvt. Ltd.*
Unitech Realty Developers Ltd.*
Unitech Realty Estates Pvt. Ltd. (upto 08.03.2015)
Unitech Realty Pvt. Ltd.*
Unitech Realty Ventures Ltd Unitech Reliable Projects Pvt. Ltd.*
Unitech Residential Resorts Ltd.* Unitech Samus Projects Pvt. Ltd.*
Unitech Universal Developers Pvt. Ltd. (upto 14.10.2014)
Unitech Universal Hotels Pvt. Ltd. (upto 14.10.2014)
Unitech Universal Simpson Hotels Pvt. Ltd. (upto 14.10.2014)
Unitech Valdel Hotels Pvt. Ltd.*
Unitech Varanasi Hi-Tech Township Ltd. (upto 14.10.2014)
Unitech Vizag Projects Ltd.* (from 01.07.2013)
Volga Realtors Pvt Ltd.* (upto 14.10.2014)
Zanskar Builders Pvt. Ltd.*
Zanskar Projects Pvt. Ltd. (upto 14.10.2014)
Zanskar Realtors Pvt. Ltd.*
Zanskar Realty Pvt. Ltd.*
Wholly owned Subsidiaries:
Zimuret Ltd.
Other Subsidiaries :
Bengal Unitech Hospitality Pvt. Ltd.
Bengal Unitech Universal Infrastructures Pvt. Ltd.*
Bengal Universal Consultants Pvt. Ltd.*
Gurgaon Recreation Park Ltd.* Havelock Properties Ltd.*
Ojos Developers Pvt. Ltd.* (from 10.03.2015)
Unitech Acacia Projects Pvt. Ltd.*
Unitech Build-Con Pvt. Ltd.
Unitech Hi-Tech Developers Ltd.*
Unitech Hospitality Services Ltd.*
Unitech Hotels Pvt. Ltd.*
Unitech Pioneer Nirvana Recreation Pvt. Ltd.*
Unitech-Pioneer Recreation Ltd.* Vectex Ltd.
Unitech Infopark Ltd.*
Unitech Libya for General Contracting and Real Estate Investment
*Entities with which transactions exist
B) Name and relationship of related parties where transaction exists:
i) Subsidiaries: in the table mentioned in (A) above with *
ii) Joint ventures:
Arihant Unitech Realty Projects S.B. Developers Ltd.
Ltd.
International Recreation Parks Uni-Chand Builders Pvt. Ltd.
Pvt. Ltd.
MNT Buildcon Pvt. Ltd. Unitech Developers and Projects
Ltd. (upto 13.05.2014)
North Town Estates Pvt. Ltd. Unitech Hi-Tech Structures Ltd.
(upto 13.05.2014)
Sarvmangalam Builders & Developers Unitech Realty Projects Ltd.
Pvt. Ltd. (upto 13.05.2014)
Seaview Developers Ltd. (upto Unitech Amusement Parks Ltd.
13.05.2014)
Shantiniketan Properties Ltd. Unitech Sai Pvt. Ltd.
Shivalik Ventures Pvt. Ltd. Shivalik Ventures City Developers
Pvt. Ltd.
SVS Buildcon Pvt. Ltd. Unitech Valdel Valmark Pvt. Ltd.
iii) Key Managerial Personnel (KMP) & their relatives:
Name Designation
Mr. Ramesh Chandra Chairman
Mr. Sanjay Chandra Managing Director
Mr. Ajay Chandra Managing Director
Mrs. Pushpa Chandra Relative of KMP
Mrs. Preeti Chandra Relative of KMP
Mr. Sunil Keswani Chief Financial Officer
Mr. Deepak Jain Company Secretary
iv) Enterprises owned or significantly influenced by Key
Managerial Personnel:
Bodhisattva Estates Pvt. Ltd. Mayfair Investments Pvt. Ltd.
(upto 28.06.2013)
Mayfair Capital Pvt. Ltd. Unitech Advisors (India) Pvt.
Ltd.
In accordance with the requirement of para 26 of AS(18) 'Related Party
Disclosures', items of similar nature have been disclosed in aggregate
the type of related parties described in B above. There are no
transactions, which in the opinion of the management warrants a special
disclosure which effect the understanding of related party transactions
on the financial statement.
4. Consequent to the enactment of the Companies Act 2013 ('the Act')
being effective from April 1 2014, the Company has reviewed and revised
the estimated useful lives of its fixed assets in accordance with the
provisions of the Schedule II of the Act. In respect of the assets
whose useful life is exhausted prior to April 1, 2014, depreciation of
Rs. 18,606,689 (net of deferred tax Rs. 8,936,334) has been adjusted
against the retained earnings as at 1st April, 2014. Had there been no
change in the estimated useful life as described above, depreciation
charged for the year ended March 31, 2015 would have been lower by Rs.
19,320,442 and loss would have been lower by Rs. 19,320,442 for the
year.
5. CONTINGENT LIABILITIES AND COMMITMENTS (TO THE EXTENT NOT PROVIDED
FOR)
I. Claims against Company not acknowledged as debt
a) Liquidated damages and other claims by clients / customers : Rs.
1,241,610,299 (previous year Rs. 275,432,912).
b) Compensation for delayed possession to customers : Rs. 3,839,000,000
(previous year Rs. 2,732,300,000)
c) Income tax matter in dispute (financial year 2004-05) pending in
appeal: Rs. 7,363,246 (previous year Rs. 7,363,246), (financial year
2006-07) pending in appeal: Rs. 222,484,964 (previous year Rs. NIL),
(financial year 2011-12) pending in appeal: Rs. 824,043,190 (previous
year Rs. NIL)
Income tax matter in dispute (financial year 2008-09) pending in
appeal: Rs. 8,729,809,740 (previous year Rs. 8,729,809,740). (Amount
paid under protest by the Company : Rs. 237,500,000). Vide notice u/s
281B of the Income tax Act, 1961 dated 06/02/2013, 2237030 equity
shares of Carnoustie Management Pvt. Ltd. having value of Rs.
3,100,545,000 and 1000000 equity shares of Shivalik Ventures Pvt. Ltd.
having value of Rs. 10,000,000,000 held by the Company have been
attached.
Income Tax (TDS) matter in dispute (financial year 2007-08) pending in
appeal: Rs. 16,219,162 (previous year Rs. 16,219,162), (financial year
2011-12) pending in appeal: Rs. 116,196,935 (previous year Rs.
115,954,908), (financial year 2012-13) pending in appeal: Rs.
168,599,180 (previous year Rs. NIL).
d) Sales tax matter in dispute: (financial year 2005-06) pending in
appeal : Rs. 7,300,428 (previous year Rs. 7,300,428) (Amount paid under
protest by the Company : Rs. 7,300,428); (financial year 2006-07)
pending in appeal : Rs. 7,930,793 (previous year Rs. 7,930,793) (Amount
paid under protest by the Company : Rs. 7,930,793); (financial year
2010-11) pending in appeal : Rs. NIL (previous year Rs. 590,403,812)
e) Service tax matter in dispute: (for the period
01/12/2005-31/07/2007): Rs. 7,260,129 (previous year Rs. 7,260,129)
II. Guarantees
a) In respect of bank guarantees: Rs. 2,151,476,772 (previous year Rs.
2,126,506,466) - It includes guarantees of Rs. 329,767,346 (previous
year Rs. 83,748,572) in respect of subsidiaries & other companies.
b) The Company has given corporate guarantees of Rs. 36,755,725,099
(previous year Rs. 33,662,030,027) for raising loans from financial
institutions and banks by its subsidiaries and joint ventures.
III. Commitments
a) Capital commitments : Rs. 6,958,783 (previous year Rs. 123,968,863)
b) Investment in 1,000,000 equity shares of Rs. 10 each at a premium of
Rs. 9,990 per share aggregating of Rs. 10,000,000,000 has been made in
joint venture Company, Shivalik Ventures Pvt. Ltd. An amount of Rs.
4,916,200,000 has been paid against the allotment of fully paid-up
shares. The balance securities premium of Rs. 5,083,800,000 will be
accounted for on payment.
c) The estimated amount of real estate contracts, net of advances
remaining to be executed is Rs. 15,938,003,000 (Previous year Rs.
13,277,769,000)
d) Other commitments : Rs. 72,331,335 (previous year Rs. 68,960,732)
e) The Company received an arbitral award dated 6th July 2012 passed by
the London Court of International Arbitration (LCIA) wherein the
arbitration tribunal has directed the Company to invest USD
298,382,949.34 (Previous year USD 298,382,949.34) equivalent to Rs.
18,702,285,205 (Previous year Rs. 17,830,768,286) in Kerrush
Investments Ltd. (Mauritius). The High Court of Justice, Queen's Bench
Division, Commercial Court London has confirmed the said award.
Based on the legal advice received by it, the Company believes that the
said award is not enforceable in India on various grounds including but
not limited to lack of jurisdiction by the LCIA appointed arbitral
tribunal to pass the said award. Nevertheless, in case the Company is
required to make the aforesaid investment into Kerrush Investments Ltd.
(Mauritius), its economic interest in the SRA project in Santacruz
Mumbai shall stand increased proportionately thereby creating a
substantial asset for the Company with an immense development
potential.
f) Investment in shares of subsidiaries amounting to Rs. 33,270,600
(Previous year Rs. 33,270,600) are pledged as securities against loan
taken by the company and its subsidiaries. Investment in shares of
joint ventures amounting to Rs. 72,800,000 (Previous year Rs.
72,750,000) are pledged as securities against loan taken by the company
and its joint venture. Investment of subsidiaries in the shares of
joint ventures of the Company and its subsidiaries amounting to Rs.
147,925,460 (Previous year Rs. 780,737,810) pledged as securities
against loan taken by the Company. Investment of subsidiaries in the
shares of its associates amounting to Rs. 245,000 (Previous year Rs.
245,000) pledged as securities against loan taken by the Company.
6. ACCOUNTING OF PROJECTS WITH CO-DEVELOPER
The Company is developing certain projects jointly with Pioneer Urban
Infrastructure Limited and its other group companies. All the
development expenses and sale proceeds booked during the year are
transferred to the co-developer at the year end in proportion to share
of actual land pooled by each developer.
7. EARNINGS IN FOREIGN CURRENCY
Receipts in respect of overseas projects Rs. NIL (previous year Rs.
NIL).
8. The Company had issued the secured non-convertible debentures on
private placement basis disclosed under note 9 to the financial
statement to a lending financial institution and these debentures are
inter alia secured by the charge on immovable properties of the Company
and its subsidiaries. However, as on 31st March 2015, part of these
non-convertible debentures (including interest accrued thereon) was
pending for redemption for a period of more than one year from their
respective due date. The lending financial institution has initiated
action under the Securitization and Reconstruction of Financial Assets
and Enforcement of Security Interest Act, 2002 (SARFAESI Act) for
recovery of amount pending against these debentures. The Company has
been legally advised and has also obtained an opinion that default in
redemption of privately placed debentures subscribed by the financial
institutions which are lenders of money or default in payment of
interest thereon, will not attract the provisions of Section 164(2)(b)
of the Companies Act, 2013 or Section 274(1)(g) of the erstwhile
Companies Act, 1956.
9. The Company had availed rupee term loan facility from a public
financial institution which was inter alia secured by the land allotted
to the Company's subsidiary. However, during the financial year 2013-14,
the Company received a notice under Section 13(4) of the Securitization
and Reconstruction of Financial Assets and Enforcement of Security
Interest Act, 2002 (SARFAESI Act) from the financial institution for
taking notional possession of the said land provided as security, by
alleging default in repayment of the said loan facility. The detail of
loans and overdue amount is given in Note 52 to the financial statement.
Based on the legal advice obtained by the management, the Company
believes that this notice is not legally tenable in terms of the
provision of SARFAESI Act and therefore, challenged the same by filing
an application before the Hon'able Debt Recovery Tribunal, Lucknow
(DRT). The matter is still pending before DRT for final decision.
10. During the year under review, the Company filed an application
before the Hon'ble Company Law Board (CLB) under Section 74(2) of the
Companies Act 2013 seeking extension of time for repayment of the
deposits accepted by the Company. The CLB vide its order pronounced on
14th May 2015 granted 30 days' time period from the date of its order
for repayment of the matured deposits alongwith interest thereon. The
Company is fully committed to repay all the deposits along with
interest thereon, within the permissible time period and it is making
all efforts to arrange the necessary resources required for this
purpose. The outstanding amount pertaining to such deposits is
disclosed under note 9 to the financial statement. However, the
management is evaluating all the recourses available to it to seek
further time for payment of the deposits.
11. The Company, in 1979, was granted certain relaxations under the
Employees' Provident Fund Scheme (PF Scheme). However, these
relaxations have been withdrawn by the Regional Provident Fund
Commissioner, Delhi (South) with effect from 31st October 2014 vide an
order dated 1st December 2014, with a direction to transfer the entire
past accumulation with the PF Trust of the Company, viz. United
Technical Consultants Provident Fund, to the Office of the Employees'
Provident Fund Organisation (EPFO). As on 31st March 2015, an amount of
Rs. 109.78 crores, which represents the assets of the PF Trust on that
date, was required to be transferred to the EPFO Office. The PF Trust
has initiated the process of transferring the said amount (including
investments of past accumulation in the government and other
securities) to the EPFO Office and shortfall, if any, in this regard
shall be met in accordance with the trust deed.
12. (a) Unitech Vizag Projects Limited (UVPL), a subsidiary of Unitech
Limited, is undertaking an Integrated Vizag Knowledge City with APIIC at
Vizag for which money has been advanced by the holding Company i.e.
Unitech Limited. UVPL got the letter from APIIC for rescinding the
development agreement against which application has been filed under
section 9 of The Arbitration and Conciliation Act 1996 in The court of
the Hon'ble XI Additional Chief Judge, City Civil Court at Hyderabad to
stay the operation of the letter. The Company and UVPL have already
invoked the arbitration clause and filed an application u/s 11 of The
Arbitration and Conciliation Act 1996 in April 2014 for appointment of
arbitrator before Hon'ble High Court of Hyderabad and the same is
pending for adjudication. APIIC has yet to file its reply. The Company
also filed an interlocutory application in continuation to pending
Section 9 application before City Civil Court, Hyderabad to restrain the
APIIC from creating any third party rights with regard to project or
project land. After considering the circumstances and legal advice
obtained by the management, the Company is confident that this will not
adversely affect the Company's investment and accordingly no provision
has been considered necessary.
(b) The Company was awarded a project for development of amusement cum
theme park in chandigarh by Chandigarh administration. The said
development agreement was unilaterally and illegally terminated by the
Chandigarh administration. The Company filed a writ petition before
Hon'ble High Court of Punjab & Haryana challenging the termination of
development agreement. The matter was referred for arbitration and the
matter is pending adjudication before the arbitration tribunal. The
Company is confident that it will recover the amount invested in the
project and accordingly no provision has been considered necessary.
13. Advances for purchase of land, projects pending commencement and
to joint ventures and collaborators amounting to Rs. 7,242,711,244
(previous year - Rs. 7,718,890,401) included under the head "short term
loans and advances" in Note 19 have been given in the normal course of
business to land owning companies, collaborators, projects or for
purchase of land. Further Rs. 476,179,157 (previous year Rs.
1,529,898,595) has been recovered / adjusted during the current
financial year. The management has been putting a constructive and
sincere effort to recover / adjust the said advances and has been
successful in recovering / adjusting a significant amount out of the
total advances, so no provision is necessary to be created for the
outstanding advances as at the balance sheet date. Further, the
management is confident to recover / adjust the balance outstanding
amount in the foreseeable future.
14. The Company has non-current investments (long term investments)
in, and loans and advances given to, some subsidiaries which have
accumulated losses. These subsidiaries have incurred loss during the
current and previous year(s) and that current liabilities of these
subsidiaries also exceed their current assets as at the respective
balance sheet dates. Management has evaluated this matter and is of the
firm view that the diminution, if any, even if it exists is only
temporary and that sufficient efforts are being undertaken to revive
the said subsidiaries in the foreseeable future so as to recover
carrying value of the investment. Further, management believes that the
loans and advances given to these companies are considered good and
recoverable based on the future projects in these subsidiaries and
accordingly no provision other than those already accounted for, has
been considered necessary.
15. (a) The Company has certain outstanding delays as at balance sheet
date with respect of long term loans from banks and term loans from
financial institutions which are as follows:
The amount with respect to loan from banks of principal and interest
respectively for the period 1-90 days is Rs. 195,699,439 (previous year
- Rs. 187,500,000) and Rs. 44,863,343 (previous year - Rs. 62,475,098).
Further in respect of term loans from financial institutions with
respect to principal and interest respectively are Rs. 610,378,395
(previous year - Rs. 353,009,814) and Rs. 443,075,909 (previous year -
Rs. 311,307,525) for 1-90 days, Rs. 130,068,520 (previous year - Rs.
231,250,000) and Rs. 127,266,588 (previous year - Rs. 295,633,937) for
91-180 days, Rs. 218,550,158 (previous year - Rs. 146,000,000) and Rs.
180,635,802 (previous year - Rs. 21,086,430) for the period 181-364 days
and for 365 days and above being Rs. 949,000,000 (previous year - Rs.
657,000,000) and Rs. 90,842,840 (previous year - Rs. NIL).
(b) The Company has certain outstanding delays as at balance sheet date
with respect of short term loans from banks & short term loans from
financial institutions which are as follows:
The amount with respect to loan from banks of principal and interest
respectively for the period 1-90 days is Rs. NIL (previous year - Rs.
NIL) and Rs. 101,415,565 (previous year - Rs. 83,055,107). Further in
respect of term loans from financial institutions with respect to
principal and interest respectively are Rs. NIL (previous year - Rs.
NIL) and Rs. 49,817,002 (previous year - Rs. 46,758,083) for 1-90 days,
Rs. NIL (previous year - Rs. NIL) and Rs. 48,284,877 (previous year -
Rs. 46,150,578) for 91-180 days, Rs. NIL (previous year - Rs. NIL) and
Rs. 94,380,288 (previous year - Rs. NIL) for 181-364 days and for 365
days and above being Rs. NIL (previous year - Rs. NIL) and Rs.
47,892,576 (previous year - Rs. NIL).
16. PREVIOUS YEAR FIGURES
Previous year figures have been regrouped, rearranged and reclassified
wherever considered necessary.
Mar 31, 2014
1. a) ACCOUNTING OF REAL ESTATE PROJECTS UNDERTAKEN UP TO 31st march,
2004
The actual receipts and installments due of Rs. 65,512,192 (previous
year Rs. 211,346,698) for the year from booking of plots/constructed
properties in ongoing real estate projects has been credited to revenue
from operations. Against this, after ascertaining profits on estimate
basis as per accounting policy No. XII(A)(a) the balance of eighty
percent is adjusted in real estate project expenditure. The final
adjustment of profit/loss is being made on completion of respective
project(s).
BENEFITS TO THE EMLOYEES
As per Accounting Standard (AS)15 revised, ''employee benefits'', the
disclosures of employee benefits are as given below:
a) Defined contribution plans
b) Defined benefit plan
The cost of providing gratuity and long term leave encashment are
determined using the projected unit credit method on the base of
actuarial valuation techniques conducted at the end of the financial
year.
The following tables summarize the component of net benefit expense in
respect of gratuity and leave encashment recognized in the statement of
profit and loss and balance sheet as per actuarial valuation as on 31st
March'' 2014 The estimates of future salary growth rates have taken into
account the inflation, seniority, promotion and other relevant factors
on long term basis.
Provident fund contributions are made to a trust administered by the
company. Pursuant to the Guidance Note issued by the Institute of
Actuaries of India, estimated obligation at year end based on actuarial
valuation has indicated that there is no deficit in this regard as at
balance sheet date.
3. SEGMENT REPORTING:
Segment wise revenue, results & other information The company is
primarily in the business of real estate development and related
activities including construction, consultancy and rentals etc. Further
most of the business conducted is within the geographical boundaries of
India.
In view of the above, in the opinion of the management and based on the
organizational and internal reporting structure, the company''s business
activities as described above are subject to similar risks and returns.
Further, since the business activities undertaken by the company are
substantiating within India, in the opinion of the management, the
business environment in India is considered to have similar risks and
returns. Consequently, the company''s business activities primarily
represent a single business segment and the company''s operations in
India represent a single geographical segment.
4. RELATED PARTY DISCLOSURES
A) Name of related parties and nature of relationship where control
exists:
B) Name and relationship of related parties where transaction exists:
i) Subsidiaries : As per * in the table mentioned in (A) above
ii) Joint ventures :
iii) Key management personnel (KMP) & their relatives :
iv) Enterprises owned or significantly influenced by Key Management
Personnel:
*Refer explanatory note under Note 2.
In accordance with the requirement of para 26 of AS(18) ''related party
disclosures'', items of similar nature have been disclosed in aggregate
the type of related parties described in B above. There are no
transactions, which in the opinion of the management warrants a special
disclosure which effect the understanding of related party transactions
on the financial statement.
5. Pursuant to clause 32 of the Listing Agreement of the disclosures
of amounts at the year end and the maximum amount of loans/ advances/
investments outstanding during the year are as follows:
6. LEASED ASSETS:
a) Operating lease taken:
Operating lease obligations: The company has taken cars/ office
equipments on operating lease basis. The lease rentals are payable by
the company on a monthly basis. Future minimum lease rentals payable as
at 31st March, 2014 as per the lease agreements are as under:
b) Operating lease given:
c) Finance lease :
The company has acquired plant and machinery and vehicles under finance
lease with the respective underlying assets as security. Minimum lease
payments (MLP) outstanding in respect of these assets are as follows :
7. INTEREST IN JOINT VENTURE
8. CONTINGENT LIABILITIES AND COMMITMENTS (TO THE EXTENT NOT pROVIDED
FOR)
I. Claims against Company not acknowledged as debt:
a) Liquidated damages and other claims by clients / customers : Rs.
275,432,912 (previous year - Rs. 296,224,221).
b) Income tax matter in dispute (financial year 2004-05) pending in
appeal: Rs. 7,363,246 (previous year - Rs. 7,363,246).
Income tax matter in dispute (financial year 2007-08) pending in
appeal: '' NIL (previous year - Rs. 210,069,833) Income tax matter in
dispute (financial year 2008-09) pending in appeal: Rs. 8,729,809,740
(previous year - Rs. 10,305,410,334). (Amount paid under protest by
the company: Rs. 200,000,000). Vide notice u/s 281B of the Income tax
Act, 1961 dated 06/02/2013, 2,237,030 equity shares of Carnoustie
Management Pvt. Ltd. having value of Rs. 3,100,545,000 and 1,000,000
equity shares of Shivalik Ventures Pvt. Ltd. having value of Rs.
10,000,000,000 held by the company have been attached.
Income Tax (TDS) matter in dispute (financial year 2007-08) pending in
appeal: Rs. 16,219,162 (previous year NIL), (financial year 2011-12)
pending in appeal: Rs. 115,954,908 (previous year - '' NIL).
c) Sales tax matter in dispute: (financial year 2005-06) pending in
appeal: Rs. 7,300,428 (previous year - Rs. 7,300,428) (Amount paid
under protest by the company: Rs. 7,300,428); (financial year 2006-07)
pending in appeal : Rs. 7,930,793 (previous year - Rs. 7,930,793)
(Amount paid under protest by the company: Rs. 7,930,793); (financial
year 2010-11) pending in appeal: Rs. 590,403,812 (previous year - ''
NIL)
d) Service tax matter in dispute: (for the period
01/12/2005-31/07/2007): Rs. 8,554,085 (previous year - Rs. 8,554,085)
II. Guarantees
a) In respect of bank guarantees: Rs. 2,126,506,466 (previous year -
Rs. 2,248,402,349) - It includes guarantees of Rs. 83,748,572
(previous year - Rs. 26,157,842) in respect of subsidiary companies.
b) The company has given corporate guarantees of Rs. 33,662,030,027
(previous year - Rs. 29,362,310,649) for raising loans from financial
institutions and banks by its subsidiaries and joint ventures.
III. Commitments
a) Capital commitments : Rs. 123,968,863 (previous year - Rs.
29,547,274)
b) Investment in 1,000,000 equity shares of '' 10 each at a premium of
Rs. 9,990 per share aggregating of Rs. 10,000,000,000 has been made
in joint venture company, Shivalik Ventures Pvt. Ltd. An amount of Rs.
4,916,200,000 has been paid against the allotment of fully paid-up
shares. The balance securities premium of Rs. 5,083,800,000 will be
accounted for on payment.
c) The estimated amount of real estate contracts, net of advances
remaining to be executed is Rs. 13,277,769,000 (Previous year - Rs.
11,773,681,000)
d) Other commitments : Rs. 68,960,732 (previous year - Rs.
62,725,670)
IV. The Company received an arbitral award dated 6th July 2012 passed
by the London Court of International Arbitration (LCIA) wherein the
arbitration tribunal has directed the Company to invest USD
298,382,949.34 (Previous year - USD 298,382,949.34) equivalent to Rs.
17,830,768,286 (Previous year - Rs. 16,218,605,211) in Burley Holdings
Ltd. (Mauritius) so as to enable it to purchase the investments of Cruz
City 1 Mauritius Holdings (Mauritius) in the joint-venture company,
Kerrush Investments Ltd (Mauritius). The High Court of Justice,
Queen''s Bench Division, Commercial Court London has confirmed the said
award.
Based on the legal advice received by it, the Company believes that the
said award is not enforceable in India on various grounds including but
not limited to lack of jurisdiction by the LCIA appointed arbitral
tribunal to pass the said award. Nevertheless, in case the Company is
required to make the aforesaid investment into Burley Holdings Limited,
its economic interest in the SRA project in Santacruz Mumbai shall
stand increased proportionately thereby creating a substantial asset
for the Company with an immense development potential.
V. Investment in shares of subsidiaries amounting to Rs. 33,270,600
(Previous year - Rs. 33,270,600) are pledged as securities against
loan taken by the company and its subsidiary. Investment in shares of
joint ventures amounting to Rs. 72,750,000 (Previous year - Rs.
72,750,000) are pledged as securities against loan taken by the Company
and its joint venture. Investment of subsidiaries in the shares of
joint ventures of the Company and its subsidiary amounting to Rs.
780,737,810 (Previous year - Rs. 780,737,810) pledged as securities
against loan taken by the company. Investment of subsidiaries in the
shares of its associates amounting to Rs. 245,000 (Previous year - Rs.
245,000) pledged as securities against loan taken by the company.
9. ACCOUNTING OF PROJECTS WITH CO-DEVELOPER
The company is developing certain projects jointly with Pioneer Urban
Infrastructure Limited and its other group companies. All the
development expenses and sale proceeds booked during the year are
transferred to the co-developer at the year end in proportion to share
of actual land pooled by each developer.
10. (a) ExpENDITURE IN FOREIGN CURRENCY
12. EARNINGS IN FOREIGN CURRENCY
Receipts in respect of overseas projects Rs. NIL (previous year Rs.
207,338,600).
13. (a) Unitech Vizag Projects Limited (UVPL), a subsidiary of Unitech
Limited, is undertaking an Integrated Vizag Knowledge City with APIIC
at Vizag for which money has been advanced by the holding company i.e.
Unitech Limited. UVPL got the letter from APIIC for rescinding the
development agreement against which petition has been filed under
Section 9 of The Arbitration and Conciliation Act, 1996 in the Court of
the HonÂble XI Additional Chief Judge, City Civil Court at Hyderabad to
stay the operation of the said letter and restraining the APIIC from
creating any third party rights with regard to project or project land.
The Company and UVPL have already invoked the arbitration clause and
appointed an arbitrator by their letters dated 27th May, 2011. APIIC is
yet to nominate its arbitrator. After considering the circumstances and
legal advice obtained by the management, the company is confident that
this will not adversely affect the companyÂs investment and accordingly
no provision has been considered necessary.
(b) The company was awarded a project for development of amusement cum
theme park in chandigarh by Chandigarh administration. The said
development agreement was unilaterally and illegally terminated by the
Chandigarh administration. The company filed a writ petition before
HonÂble High Court of Punjab & Haryana challenging the termination of
development agreement. The matter was referred for arbitration and the
matter is pending adjudication before the arbitration tribunal. The
company is confident that it will recover the amount invested in the
project and accordingly no provision has been considered necessary.
14. Advances for purchase of land, projects pending commencement and to
joint ventures and collaborators amounting to Rs. 7,718,890,401
(previous year - Rs. 9,248,788,996) included under the head ''short term
loans and advances'' in Note 19 have been given in the normal course of
business to land owning companies, collaborators, projects or for
purchase of land. Further Rs. 1,529,898,595 (previous year Rs.
6,825,516,966) has been recovered / adjusted during the current
financial year. The management has been putting a constructive and
sincere efforts to recover / adjust the said advances and has been
successful in recovering / adjusting a significant amount out of the
total advances, so no provision is necessary to be created for the
outstanding advances as at the balance sheet date. Further, the
management is confident to recover / adjust the balance outstanding
amount in the foreseeable future.
15.(a) The company has certain outstanding delays as at balance sheet
date with respect of long term loans from banks and term loans from
financial institutions which are as follows: The amount with respect to
loan from banks of principal and interest respectively for the period
1-90 days is Rs. 187,500,000 (previous year - Rs. 288,587,688) and Rs.
62,475,098 (previous year - Rs. 37,109,131). Further in respect of term
loans from financial institutions with respect to principal and
interest respectively are Rs. 353,009,814 (previous year - Rs.
440,495,819) and Rs. 311,307,525 (previous year - Rs. 330,022,148) for
1-90 days, Rs. 231,250,000 (previous year - Rs. 125,073,170) and Rs.
295,633,937 (previous year - Rs. 45,175,108) for 91-180 days, Rs.
146,000,000 (previous year - Rs. 146,000,000) and Rs. 21,086,430
(previous year - Rs. 95,929,579) for the period 181-364 days and for
365 days and above being Rs. 657,000,000 (previous year - Rs.
365,000,000) and Rs.NIL(previous year - Rs. 122,023,463).
(b) The company has certain outstanding delays as at balance sheet date
with respect of short term loans from banks which are as follows: The
amount with respect to loan from banks of principal and interest
respectively for the period 1-90 days is Rs. NIL (previous year - Rs.
NIL) and Rs. 83,055,107 (previous year - Rs. 21,502,154). Further in
respect of term loans from financial institutions with respect to
principal and interest respectively are Rs. NIL (previous year - Rs.
NIL) and Rs. 46,758,083 (previous year - Rs. NIL) for 1-90 days and Rs.
NIL (previous year - Rs. NIL) and Rs. 46,150,578 (previous year - Rs.
NIL) for 91-180 days.
16. PREVIOUS YEAR FIGURES Prior year figures have been regrouped,
rearranged and reclassified wherever considered necessary.
Mar 31, 2013
1. a) ACCOUNTING OF REAL ESTATE PROJECTS UNDERTAKEN UP TO 31st MARCH,
2004
The actual receipts and installments due of Rs.211,346,698 (previous
year Rs.216,348,823) for the year from booking of plots/constructed
properties in ongoing real estate projects has been credited to revenue
from operations. Against this, after ascertaining profits on estimate
basis as per accounting policy No. XII(A)(a) the balance of eighty
percent is adjusted in real estate project expenditure. The final
adjustment of profit/loss is being made on completion of respective
project(s).
b) CONSTRUCTION CONTRACTS
2. BENEFITS TO EMPLOYEES
As per Accounting Standard (AS)15 revised, ''Employee Benefits'', the
disclosures of employee benefits are as given below:
a) Defined contribution plans
Contributions recognized as expense for the year are as under:
b) Defined benefit plan
The cost of providing gratuity and long term leave encashment are
determined using the projected unit credit method on the base of
actuarial valuation techniques conducted at the end of the financial
year.
The following tables summarize the component of net benefit expense in
respect of gratuity and leave encashment recognized in the Statement of
Profit and Loss and Balance Sheet as per actuarial valuation as on 31st
March, 2013
3. SEGMENT REPORTING
Segment wise revenue, results & other information
The Company is primarily in the business of real estate development and
related activities including construction, consultancy and rentals etc.
Further most of the business conducted is within the geographical
boundaries of India.
In view of the above, in the opinion of the management and based on the
organizational and internal reporting structure, the Company''s
business activities as described above are subject to similar risks and
returns. Further, since the business activities undertaken by the
Company are substantiating within India, in the opinion of the
management, the business environment in India is considered to have
similar risks and returns. Consequently, the Company''s business
activities primarily represent a single business segment and the
Company''s operations in India represent a single geographical
segment.
4. CONTINGENT LIABILITIES AND COMMITMENTS (TO THE EXTENT NOT PROVIDED
FOR)
I. Claims against Company not acknowledged as debt
a) Liquidated damages and other claims by clients / customers : Rs.
296,224,221 (previous year Rs.294,081,303).
b) Following cancellation of 122 UAS licenses granted to the private
companies [including 22 UAS licenses issued to Unitech Wireless
(Tamilnadu) Pvt. Ltd., Unitech Wireless (Mumbai) Pvt. Ltd., Unitech
Wireless (Kolkata) Pvt. Ltd., Unitech Wireless (Delhi) Pvt. Ltd.,
Unitech Wireless (North) Pvt. Ltd., Unitech Wireless (South) Pvt. Ltd.,
Unitech Wireless (East) Pvt. Ltd. and Unitech Wireless (West) Pvt. Ltd.
("Unitech Wireless Companies")] on or after 10th January 2008 by
the Hon''ble Supreme Court of India vide its judgment dated 2nd February
2012, Telenor Asia Pte Ltd and Telenor Mobile Communications AS
(collectively referred as "Telenor") issued a notice of
misrepresentation and fraud by the Company, Cestos Unitech Wireless
Pvt. Ltd., Simpson Unitech Wireless Pvt. Ltd., Acorus Unitech Wireless
Pvt. Ltd. and Unitech Wireless (Tamilnadu) Pvt. Ltd. and sought
indemnification of its equity investment in Unitech Wireless Companies
amounting to Rs.61,356,253,283 (previous year Rs.61,356,253,283) along
with interest of 18% p.a. which is equal to Rs.38,745,814,0 66
(previous year Rs.27,701,688,475) as on 31st March 2013. Telenor has
filed its claim with the Singapore International Arbitration Centre.
The Hon''ble Supreme Court cancelled the UAS licenses issued to all the
companies in 2008 by questioning the government policy and Telenor also
did a detailed due diligence prior to investment in Unitech Wireless
Companies. Based on the legal advice obtained by the management, the
Company is confident that the indemnity claims of Telenor are not
maintainable.
Further post cancellation of telecom licences issued to Unitech
Wireless companies, the Company has executed the settlement and mutual
release agreement with Telenor on 10th October, 2012 which provides for
transfer of entire 32.75% stake in Unitech Wireless Companies to
Telenor nominated entity for a nominal amount and withdrawal of all
disputes between the parties, on fulfillment of certain conditions
which are yet to be fulfilled on the reporting date. Accordingly,
Telenor will withdraw the aforesaid indemnity claim on fulfillment of
these conditions, and in case these conditions are not met, the
settlement and mutual release agreement will get terminated and all
rights & obligations of the parties will be restored to the situation
before the said agreement.
c) Income tax matter in dispute (Financial year 2004-05) pending in
appeal: Rs.7,363,246 (previous year Rs.7,363,246).
Income tax matter in dispute (financial year 2007-08) pending in
appeal: Rs. 210,069,833 (previous year Rs. 210,069,833) (Amount paid
under protest by the Company : Rs. 70,000,000).
Income tax matter in dispute (financial year 2008-09) pending in
appeal: Rs.10,305,410,334 (previous year Rs. NIL). (Amount paid under
protest by the Company : Rs.430,000,000). Vide notice u/s 226(3) of the
Income tax Act, 1961 dated 06/02/2013, 2,237,030 equity shares of
Carnoustie Management Pvt. Ltd. having value of Rs.3,100,545,000 and
1,000,000 equity shares of Shivalik Ventures Pvt. Ltd. having value of
Rs.10,000,000,000 held by the Company are attached.
d) Sales tax matter in dispute: (financial year 2006-07) pending in
appeal : Rs. 7,300,428 (previous year Rs. 7,300,428) (Amount paid under
protest by the Company : Rs.7,300,428); (financial year 2007-08)
pending in appeal : Rs.7,930,793 (previous year Rs.7,930,793) (Amount
paid under protest by the Company : Rs. 7,930,793); (financial year
2009-10): Rs. 2,446,904 (previous year Rs.NIL)
e) Service tax matter in dispute: (for the period
01/12/2005-31/07/2007): Rs. 8,554,085 (previous year Rs. 8,554,085)
II. Guarantees
a) In respect of bank guarantees: Rs. 2,248,402,349 (previous year
Rs.2,249,212,017) - It includes guarantees of Rs.26,157,842 (previous
year Rs.33,122,510) in respect of subsidiary companies.
b) The Company has given corporate guarantees of Rs.29,362,310,649
(previous year Rs.22,178,737,135) for raising loans from financial
institutions and banks by its subsidiaries, joint ventures and
erstwhile subsidiaries.
III. Commitments
a) Capital commitments : Rs.29,547,274 (previous year Rs.27,551,749)
b) Investment in 1,000,000 equity shares of Rs.10 each at a premium of
Rs.9,990 per share aggregating of Rs.10,000,000,000 has been made in
joint venture Company, Shivalik Ventures Pvt. Ltd. An amount of
Rs.4,910,200,000 has been paid against the allotment of fully paid-up
shares. The balance securities premium of Rs. 5,089,800,000 will be
accounted for on payment.
c) The estimated amount of real estate contracts, net of advances
remaining to be executed is Rs.11,773,681,000 (Previous year
Rs.8,443,707,000)
d) The Company received an arbitral award dated 6th July 2012 passed by
the London Court of International Arbitration (LCIA) wherein the
arbitration tribunal has directed the Company to invest USD
298,382,949.34 equivalent to Rs.16,218,605,211 in Burley Holdings Ltd.
(Mauritius) so as to enable it to purchase the investments of Cruz City
1 Mauritius Holdings (Mauritius) in the joint-venture Company, Kerrush
Investments Ltd ("Mauritius"). The High Court of Justice, Queen''s
Bench Division, Commercial Court London has confirmed the said award.
Based on the legal advice received by it, the Company believes that the
said award is not enforceable in India on various grounds including but
not limited to lack of jurisdiction by the LCIA appointed arbitration
tribunal to pass the said award. Nevertheless, in case the Company is
required to make the aforesaid investment into Burley Holdings Limited,
its economic interest in the SRA project in Santacruz Mumbai shall
stand increased proportionately thereby creating a substantial asset
for the Company with an immense development potential.
e) Other commitments : Rs.62,725,670 (previous year Rs. 64,397,700)
5. Investment in shares of subsidiaries amounting to Rs.33,270,600
(Previous year Rs.33,270,600 ) are pledged as securities against loan
taken by the Company and its subsidiary. Investment in shares of joint
ventures amounting to Rs.72,750,000 (Previous year Rs.72,750,000) are
pledged as securities against loan taken by the Company and its joint
venture.
6. ACCOUNTING OF PROJECTS WITH CO-DEVELOPER
The Company is developing certain projects jointly with Pioneer Urban
Infrastructure Limited and its other group companies. All the
development expenses and sale proceeds booked during the year are
transferred to the co-developer at the year end in proportion to share
of actual land pooled by each developer.
7. EARNINGS IN FOREIGN CURRENCY
Receipts in respect of overseas projects Rs.207,338,600 (previous year
Rs.45,981,188).
8. (a) Unitech Vizag Projects Limited (UVPL), a subsidiary of Unitech
Limited, is undertaking an Integrated Vizag Knowledge City with APIIC
at Vizag for
which money has been advanced by the holding Company i.e. Unitech
Limited. UVPL got the letter from APIIC for rescinding the development
agreement against which petition has been filed under section 9 of The
Arbitration and Conciliation Act, 1996 in The Court of the Hon''ble XI
Additional Chief Judge, City Civil Court at Hyderabad to stay the
operation of the said letter and restraining the APIIC from creating
any third party rights with regard to project or project land. The
Company and UVPL have already invoked the arbitration clause and
appointed an arbitrator by their letters dated 27th May''2011. APIIC
is yet to nominate its arbitrator. After considering the circumstances
and legal advice obtained by the management, the Company is confident
that this will not adversely affect the Company''s investment and
accordingly no provision has been considered necessary.
(b) The Company was awarded a project for development of amusement cum
theme park in Chandigarh by Chandigarh administration. The said
development agreement was unilaterally and illegally terminated by the
Chandigarh administration. The Company filed a writ petition before
Hon''ble High Court of Punjab & Haryana challenging the termination of
development agreement. The matter was referred for arbitration and the
matter is pending adjudication before the arbitration tribunal. The
Company is confident that it will recover the amount invested in the
project and accordingly no provision has been considered necessary.
9. Advances for purchase of land, projects pending commencement and
to joint ventures and collaborators amounting to Rs.9,248,788,996
(previous year-Rs. 16,074,30 5,96 2) included under the head "short
term loans and advances" in Note 19 have been given in the normal
course of business to land owning companies, collaborators, projects or
for purchase of land. The management of the Company based on the
internal assessment and evaluations considers that these advances,
which are in the normal course of business recoverable/ adjustable and
that no provision is necessary as at Balance Sheet date. Further
significant portion has been adjusted/ recovered during the current
financial year and the management is confident of recovering/
appropriately adjusting the balance.
10. The Company and its affiliates have invested Rs. 6,382,586,848 for
32.75% equity stake in Unitech Wireless Companies (i.e. direct equity
holding of 6.76% and indirect equity holding through economic interest
of 25.99% financed by way of compulsorily convertible debentures which
entitles right to acquire the equity shares of affiliate companies) by
undertaking the long-term debts/obligations. Further, the Company
(including its subsidiaries/ affiliates/nominees) has a contractual
investment obligation in future of Rs.9,239,467,835 in an affiliate
Company holding stake in Unitech Wireless Companies.
As on the reporting date, Unitech Wireless Companies are not carrying
any telecom operation business pursuant to the cancellation of their
telecom licenses by the Hon''ble Supreme Court of India and
non-participation by these companies in the recent spectrum auctions of
the Department of Telecommunications (DoT). Further, post cancellation
of telecom licences issued to Unitech Wireless companies, the Company
has executed the settlement and mutual release agreement with Telenor
Asia Pte Ltd. on 10th October, 2012 which provides for transfer of
entire 32.75% stake in Unitech Wireless Companies to Telenor nominated
entity for a nominal amount and withdrawal of all disputes between the
parties, on fulfillment of certain conditions which are yet to be
fulfilled on the reporting date. Accordingly, Telenor will withdraw
the aforesaid indemnity claim on fulfillment of these conditions, and
in case these conditions are not met, the settlement and mutual release
agreement will get terminated and all rights & obligations of the
parties will be restored to the situation before the said agreement.
In view of the above fact, the Company has accounted for Rs.345,000,000
with respect to diminution in the value of its investments in Unitech
Wireless Companies and related losses on account of cessation of
telecom operations of Unitech Wireless Companies post-cancellation of
their telecom licenses and non-participation in recent spectrum
auctions of DoT.
The management is not currently in a position to ascertain how and in
which group Company the aforesaid obligation if at all, is likely to
devolve.
11. (a) The Company has certain outstanding delays as at Balance Sheet
date with respect to long term loans from banks and term loans from
financial institutions which are as follows:
The amount with respect to loan from banks of principal and interest
respectively for the period 1-90 days is Rs.288,587,688 (previous year-
Rs. 1,063,721,408) and Rs.37,109,131(previous year-Rs. 218,117,923).
Further in respect of term loans from financial institutions with
respect to principal and interest respectively are Rs.440,495,819
(previous year-Rs. 515,894,201)and Rs.330,022,148 (previous
year-Rs.104,270,982) for 1-90 days, Rs. 125,073,170 (previous
year-Rs.303,000,000)and Rs.45,175,108 (previous year-Rs. 140,028,329)
for 91-180 days, Rs.146,000,000 (previous year-Rs. 146,000,000)and
Rs.95,929,579 (previous year-Rs. 91,003,756) for the period 181-364
days and for 365 to 756 days being Rs.365,000,000 (previous year-Rs.
NIL) and Rs. 122,023,463 (previous year-Rs. NIL).
(b) The Company has certain outstanding delays as at Balance Sheet date
with respect to short term loans from banks which are as follows:
The amount with respect to loan from banks of principal and interest
respectively for the period 1-90 days is Rs. NIL (previous year - Rs.
NIL) and Rs. 21,502,154 (previous year - Rs. NIL).
12. PREVIOUS YEAR FIGURES
Prior year figures have been regrouped, rearranged and reclassified
wherever considered necessary.
Mar 31, 2012
1. a) ACCOUNTING OF REAL ESTATE PROJECTS UNDERTAKEN UP TO 31st MARCH,
2004
The actual receipts and installments due of Rs. 216,348,823 (previous
year Rs. 179,150,564) for the year from booking of plots/constructed
properties in ongoing real estate projects has been credited to revenue
from operations. Against this, after ascertaining profits on estimate
basis as per accounting policy No. XII(A)(a) the balance of eighty
percent is adjusted in real estate project expenditure. The final
adjustment of profit/loss is being made on completion of respective
project(s).
2. BENEFITS TO EMPLOYEES:
As per Accounting Standard (AS)15 revised, 'employee benefits', the
disclosures of employee benefits are as given below:
(b) Defined benefit plan
The Cost of providing gratuity and long term leave encashment are
determined using the projected unit credit method on the base of
actuarial valuation techniques conducted at the end of the financial
year.
The following tables summarize the component of net benefit expense in
respect of gratuity and leave encashment recognized in the profit and
loss account and balance sheet as per actuarial valuation as on 31st
March, 2012.
3. SEGMENT REPORTING:
Segment wise revenue, results & other information
The company is primarily in the business of real estate development and
related activities including construction, consultancy and rentals etc.
Further majority of the business conducted is within the geographical
boundaries of India.
In view of the above, in the opinion of the management and based on the
organizational and internal reporting structure, the company's business
activities as described above are subject to similar risks and returns.
Further, since the business activities undertaken by the company are
within India, in the opinion of the management, the environment in
India is considered to have similar risks and returns. Consequently,
the company's business activities primarily represent a single business
segment. Similarly this company's operations in India represent a
single geographical segment.
4. RELATED PARTY DISCLOSURES
A) Name of related parties and nature of relationship where control
exists:
Wholly owned Subsidiaries:
Abohar Builders Pvt. Ltd. Aditya Properties Pvt. Ltd. Agmon Builders
Pvt. Ltd. Agmon Projects Pvt. Ltd. Akola Properties Ltd. Algoa
Properties Pvt. Ltd. Alice Builders Pvt. Ltd. Alkosi Ltd.
Aller Properties Pvt. Ltd. Alor Golf Course Pvt. Ltd. Alor
Maintenance Pvt. Ltd. Alor Projects Pvt. Ltd. Alor Recreation Pvt.
Ltd. Amaro Developers Pvt. Ltd. (from 16.03.2012) Amarprem Estates
Pvt. Ltd. Amur Developers Pvt. Ltd. Andes Estates Pvt. Ltd. Andros
Properties Pvt. Ltd. Angers Properties Ltd. Angul Properties Pvt.
Ltd. Arahan Properties Pvt. Ltd.
Arcadia Build- Tech Ltd.
Arcadia Projects Pvt. Ltd.
Ardent Build-Tech Ltd.
Askot Builders Pvt. Ltd.
Avens Properties Pvt. Ltd.
(upto 08.08.2011)
Avril Properties Pvt. Ltd.
Azores Properties Ltd.
Bageris Ltd.
Bengal Unitech Universal Siliguri
Projects Ltd.
Bengal Unitech Universal Townscape
Ltd.
Bolemat Ltd.
Boracim Ltd.
Broomf eld Builders Pvt. Ltd.
Broomf eld Developers Pvt. Ltd.
Brucosa Ltd.
Burley Holding Ltd.
Camphor Properties Pvt. Ltd.
(from 27.10.2011)
Cape Developers Pvt. Ltd.
Cardus Projects Pvt. Ltd.
Cardus Properties Pvt. Ltd.
Clarence Projects Pvt. Ltd.
Clover Projects Pvt. Ltd.
Coleus Developers Pvt.Ltd.
Colossal Infra-Developers Pvt. Ltd.
Colossal Projects Pvt. Ltd.
Comegenic Ltd.
Comfrey Developers Pvt. Ltd.
Cordia Projects Pvt. Ltd.
Crimson Developers Pvt. Ltd.
Croton Developers Pvt. ltd.
Crowbel Ltd.
Cynara Airlines Pvt. Ltd.
Dantas Properties Pvt. Ltd.
Deoria Estates Pvt. Ltd.
Deoria Properties Ltd.
Deoria Realty Pvt. Ltd.
Devoke Developers Pvt. Ltd
Devon Builders Pvt. Ltd.
(from 14.03.2012)
Dhauladhar Projects Pvt. Ltd.
Dhauladhar Properties Pvt. Ltd.
Dhaulagiri Builders Pvt. Ltd.
(from 14.03.2012)
Dhruva Realty Projects Ltd.
Dibang Properties Pvt. Ltd.
Drass Projects Pvt. Ltd.
Edward Developers Pvt. Ltd.
(upto 05.03.2012)
Edward Properties Pvt. Ltd.
Elbe Builders Pvt. Ltd.
Elbrus Builders Pvt. Ltd. (from
28.03.2012)
Elbrus Developers Pvt. Ltd.
Elbrus Properties Pvt. Ltd.
Empecom Corporation
Erebus Projects Pvt. Ltd.
Erica Projects Pvt. Ltd.
Erode Projects Pvt. Ltd.
Falcon Projects Pvt. Ltd.
Fastnet Holdings Ltd. (upto
21.09.2011)
Ficus Projects Pvt. Ltd.
Firisa Holdings Ltd.
Flores Projects Pvt. Ltd.
Flores Properties Ltd.
Gibson Developers Pvt. Ltd.
Girnar Infrastructures Pvt. Ltd.
Global Perspectives Ltd.
Gordon Developers Pvt. Ltd.
Gordon Projects Pvt. Ltd.
Gramhuge Holdings Ltd.
Greenwood Projects Pvt. Ltd.
Gretemia Holdings Ltd.
Halley Developers Pvt. Ltd.
Halley Projects Pvt. Ltd.
Hanak Developers Pvt. Ltd. (upto
05.03.2012)
Harsil Builders Pvt. Ltd.
Harsil Properties Pvt. Ltd.
Hassan Properties Pvt. Ltd.
Hatsar Estates Pvt. Ltd.
Havelock Estates Pvt. Ltd.
Havelock Investments Ltd.
Havelock Realtors Ltd.
Havelock Schools Ltd.
Helmand Projects Pvt. Ltd.
(upto 08.08.2011)
High Strength Infra-Developers Pvt.
Ltd.
High Strength Projects Pvt. Ltd.
High Vision Healthcare Pvt. Ltd.
ILam Developers Pvt. Ltd.
(from 26.03.2012)
Impactlan Ltd.
Insecond Ltd.
Jalore Properties Pvt Ltd
Jorhat Properties Pvt. Ltd.
Kerria Projects Pvt. Ltd. (from
16.03.2012)
Kolkata International Convention
Centre Ltd. (upto 05.09.2011)
Konar Developers Pvt. Ltd.
Kortel Ltd.
Koshi Builders Pvt. Ltd.
Landscape Builders Ltd.
Lavender Builders Pvt. Ltd.
Lavender Developers Pvt. Ltd.
Lavender Infra-Developers Pvt. Ltd.
Lavender Projects Pvt. Ltd.
Mahoba Builders Pvt. Ltd.
Mahoba Schools Ltd.
Malva Realtors Pvt. Ltd. (upto
05.03.2012)
Manas Realty Projects Pvt. Ltd.
Mandarin Developers Pvt. Ltd.
Mandarin Projects Pvt. Ltd.
Mangrove Builders Pvt. Ltd. (from
18.10.2011)
Mangrove Projects Pvt. Ltd. (upto
05.03.2012)
Mansar Properties Pvt. Ltd.
Marine Builders Pvt. Ltd.
Masla Builders Pvt. Ltd.
Mayurdhwaj Projects Pvt. Ltd.
Medlar Developers Pvt. Ltd.
Medwyn Builders Pvt. Ltd. (from
16.03.2012)
MHW Hospitality Ltd.
Miraj Builders Pvt. Ltd. (upto
05.03.2012)
Moore Builders Pvt. Ltd.
Moore Developers Pvt. Ltd.
Mount Everest Projects Pvt. Ltd.
Munros Projects Pvt. Ltd.
Nectrus Ltd.
Neil Schools Ltd. (upto 05.03.2012)
Nene Properties Pvt. Ltd.
New India Construction Co. Ltd.
Niger Projects Pvt. Ltd.
(upto 05.03.2012)
Nirvana Real Estate Projects Ltd.
Nuwell Ltd.
Ojos Developers Pvt. Ltd.
Onega Properties Pvt. Ltd.
Panchganga Projects Ltd.
Panicum Projects Pvt. Ltd.
Parsley Developers Pvt. Ltd.
(upto 05.03.2012)
Plassey Builders Pvt. Ltd.
Plassey Developers Pvt. Ltd. (upto
28.04.2011)
Prasunder Estates Pvt. Ltd.
Primrose Developers Pvt. Ltd.
Privet Developers Pvt. Ltd. (upto
05.03.2012)
Puma Developers Pvt. Ltd. (upto
05.03.2012)
Purus Projects Pvt. Ltd.
Purus Properties Pvt. Ltd.
Quadrangle Estates Pvt. Ltd.
Reglina Holdings Ltd.
Rhine Infrastructures Pvt. Ltd.
Richmond Infrastructures Pvt. Ltd.
Risster Holdings Ltd.
Robinia Developers Pvt. Ltd.
Ruhi Construction Co. Ltd.
Sabarmati Projects Pvt. Ltd.
Samay Properties Pvt. Ltd.
Samus Properties Pvt. Ltd.
Sandwood Builders & Developers Pvt.
Ltd. (from 16.03.2012)
Sangla Properties Pvt. Ltd.
Sankoo Builders Pvt. Ltd.
Sankoo Developers Pvt. Ltd.
Sanyog Builders Ltd.
Sanyog Properties Pvt. Ltd.
Sarnath Realtors Ltd.
Serveia Holdings Ltd.
Seyram Ltd.
Shrishti Buildwell Pvt. Ltd.
Sibia Builders Pvt. Ltd.
Simpson Estates Pvt. Ltd.
Sironi Properties Pvt. Ltd.
Sirur Developers Pvt. Ltd.
Somerville Developers Ltd.
Spanwave Services Ltd.
Speciality Builders & Exporters Pvt.
Ltd. (upto 05.03.2012)
Sublime Developers Pvt. Ltd.
Sublime Properties Pvt. Ltd.
Supernal Corrugation India Ltd.
Surfware Consultants Ltd.
Suru Properties Pvt. Ltd.
Tabas Estates Pvt. Ltd.
Technosolid Ltd.
Transdula Ltd.
Uni Homes Pvt. Ltd.
Unitech Acorus Projects Pvt. Ltd.
Unitech Agra Hi-Tech Township Ltd.
Unitech Alice Projects Pvt. Ltd.
Unitech Ardent Projects Pvt. Ltd.
Unitech Broadband Ltd.
(upto 05.03.2012)
Unitech Broadcast Ltd. (upto
05.03.2012)
Unitech Builders & Projects Ltd.
Unitech Builders Ltd.
Unitech Buildwell Pvt. Ltd
Unitech Business Parks Ltd.
Unitech Capital Pvt. Ltd.
Unitech Colossal Projects Pvt. Ltd.
Unitech Commercial & Residential
Developers Pvt. Ltd. (upto 05.03.2012)
Unitech Commercial & Residential
Projects Pvt. Ltd.
Unitech Country Club Ltd.
Unitech Cynara Projects Pvt. Ltd.
Unitech Developers & Hotels Pvt. Ltd.
Unitech Entertainment Pvt. Ltd.
(upto 05.03.2012)
Unitech Global Ltd.
Unitech Haryana SEZ Ltd. (upto
05.03.2012)
Unitech Hi-Tech Builders Pvt. Ltd.
Unitech Hi-Tech Infrastructures Pvt.
Ltd.
Unitech Hi-Tech Projects Pvt. Ltd.
Unitech Hi-Tech Realtors Pvt. Ltd.
Unitech High Vision Projects Ltd.
Unitech Holdings Ltd.
Unitech Hospitality Ltd.
Unitech Hotel Services Pvt. Ltd.
Unitech Hotels & Projects Ltd.
Unitech Hotels Ltd.
Unitech Hotels Pvt. Ltd.
Unitech Hyderabad Projects Ltd.
Unitech Hyderabad Township Ltd.
(from 01.04.2011)
Unitech Industries & Estates Pvt. Ltd.
Unitech Industries Ltd.
Unitech Infopark Ltd.
Unitech Infra Ltd.
Unitech Infra-Developers Ltd.
Unitech Infra-Projects Pvt. Ltd.
Unitech Infra-Properties Ltd.
Unitech Karma Hotels Pvt. Ltd. (upto
05.03.2012)
Unitech Kochi-SEZ Ltd.
Unitech Konar Projects Pvt. Ltd.
Unitech Landmark Builders Pvt. Ltd.
Unitech Landscape Projects Pvt. Ltd.
Unitech Libya for General Contracting
and Real Estate Investment
Unitech Malls Ltd.
Unitech Manas Projects Pvt. Ltd.
Unitech Miraj Projects Pvt. Ltd.
Unitech Nelson Projects Pvt. Ltd.
Unitech Office Fund Trustee Pte. Ltd.
Unitech Overseas Ltd.
Unitech Overseas Projects Ltd.
Unitech Pioneer Nirvana Recreation
Pvt. Ltd.
Unitech Power Distribution Pvt. Ltd.
Unitech Power Projects Pvt. Ltd.
Unitech Power Pvt. Ltd.
Unitech Power Transmission Ltd.
Unitech Property Management Pvt.
Ltd.
Unitech Real Estate Builders Ltd.
Unitech Real Estate Developers Ltd.
Unitech Real Estate Management Pvt.
Ltd.
Unitech Real Tech Developers Pvt. Ltd.
Unitech Real-Tech Properties Ltd.
Unitech Realty Builders Pvt. Ltd.
Unitech Realty Constructions Pvt. Ltd.
(upto 05.03.2012)
Unitech Realty Developers Ltd.
Unitech Realty Estates Pvt. Ltd.
Unitech Realty Pvt. Ltd.
Unitech Realty Solutions Pvt. Ltd.
(upto 05.03.2012)
Unitech Realty Ventures Ltd.
Unitech Reliable Projects Pvt. Ltd
Unitech Residential Resorts Ltd.
Unitech Samus Projects Pvt. Ltd.
Unitech Scotia Realtors Pvt. Ltd.
Unitech Simpson Projects Pvt. Ltd.
Unitech Telecom Holdings Ltd
(upto 05.03.2012)
Unitech Universal Developers Pvt. Ltd.
Unitech Universal Falcon Hotels Pvt.
Ltd. (upto 05.03.2012)
Unitech Universal Hotels Pvt. Ltd.
Unitech Universal Simpson Hotels Pvt.
Ltd.
Unitech Valdel Hotels Pvt. Ltd
Unitech Varanasi Hi-Tech Township
Ltd.
Unitech Wireless Ltd. (upto
05.03.2012)
Unitech-Pioneer Recreation Ltd.
United Techno-Con Pvt. Ltd. (upto
05.03.2012)
Vitex Properties Pvt. Ltd. (upto
05.03.2012)
Volga Realtors Pvt. Ltd.
Vostok Builders Pvt. Ltd.
Zanskar Builders Pvt. Ltd.
Zanskar Estates Pvt. Ltd.
Zanskar Projects Pvt. Ltd.
Zanskar Realtors Pvt. Ltd.
Zanskar Realty Pvt. Ltd.
Zimuret Ltd.
Other Subsidiaries :
Bengal Unitech Hospitality Pvt. Ltd.
Bengal Unitech Universal Infrastructures
Pvt. Ltd.
Bengal Universal Consultants Pvt. Ltd.
Gurgaon Recreation Parks Ltd.
Havelock Properties Ltd.
Unitech Acacia Projects Pvt. Ltd.
Unitech Build-Con Pvt. Ltd. (from
02.01.2012)
Unitech Hi-Tech Developers Ltd.
Unitech Hospitality Services Ltd.
Unitech Vizag Projects Ltd.
Vectex Ltd.
B) Name and relationship of related parties where transaction exists:
i) Subsidiaries : As per table mentioned in (A) above
ii) Joint Ventures :
Arihant Unitech Realty Projects Ltd. Unitech Amusement Parks Ltd.
International Recreation Parks Pvt. Ltd. Uni-Chand Builders Pvt. Ltd.
North Town Estates Pvt. Ltd. Unitech Developers and Projects Ltd.
S. B. Developers Ltd. Unitech Hi-Tech Structures Ltd.
Seaview Developers Ltd. Unitech Infra-Con Ltd.
Shantiniketan Properties Ltd Unitech Realty Projects Ltd.
Shivalik Ventures Pvt. Ltd. Unival Willows Estate Pvt. Ltd.
iii) Associates :
Millennium Plaza Ltd. New Kolkata International Development Pvt. Ltd.
Greenwoods Hospitality Pvt. Ltd. Unitech Shivalik Realty Ltd.
(Formerly known as Rainview Properties Pvt. Ltd.)
Simpson Unitech Wireless Pvt. Ltd. Viviana Infra Developers Pvt. Ltd.
iv) Key Management Personnel & their relatives :
Name Designation
Mr. Ramesh Chandra Chairman
Mr. Sanjay Chandra Managing Director
Mr. Ajay Chandra Managing Director
v) Group of Individuals having control or significant influence over
the Company & relatives of such individual(s) :
Name Designation Relatives Relation
Ms. Minoti Bahri Non Executive Director Mr. Rahul Bahri Brother
vi) Enterprises owned or significantly influenced by Key Management
Personnel or their relatives :
Anshil Estates Pvt. Ltd. Mayfair Investments Pvt. Ltd.
Prakausali Investments (India) Pvt. Ltd. Simpson Unitech Wireless Pvt.
Ltd.
Unitech Advisors (India) Pvt. Ltd. Harsil Projects Pvt. Ltd.
vii) Enterprises owned or significantly influenced by group of
individuals or their relatives who have control or significant inf
-luence over the Company :
R. V. Techno Investments Pvt. Ltd.
In accordance with the requirement of para 26 of AS(18) 'Related Party
Disclosures', items of similar nature have been disclosed in aggregate
the type of related parties described in B above. There are no
transactions, which in the opinion of the management warrants a special
disclosure which effect the understanding of related party transactions
on the financial statement.
5. CONTINGENT LIABILITIES AND COMMITMENTS (TO THE EXTENT NOT PROVIDED
FOR)
I. Claims against company not acknowledged as debt
a) Liquidated damages and other claims by clients / customers : Rs.
294,081,303 (previous year Rs. 507,409,961).
b) Following cancellation of 122 UAS licenses granted to the private
companies [including 22 UAS licenses issued to Unitech Wireless
(Tamilnadu) Pvt. Ltd., Unitech Wireless (Mumbai) Pvt. Ltd., Unitech
Wireless (Kolkata) Pvt. Ltd., Unitech Wireless (Delhi) Pvt. Ltd.,
Unitech Wireless (North) Pvt. Ltd., Unitech Wireless (South) Pvt. Ltd.,
Unitech Wireless (East) Pvt. Ltd. and Unitech Wireless (West) Pvt. Ltd.
(ÃUnitech Wireless CompaniesÃ)] on or after 10th January 2008 by the
Hon'ble Supreme Court of India vide its judgment dated 2nd February,
2012, Telenor Asia Pte Ltd and Telenor Mobile Communications AS
(collectively referred as ÃTelenorÃ) issued a notice of
misrepresentation and fraud by the Company, Cestos Unitech Wireless
Pvt. Ltd., Simpson Unitech Wireless Pvt. Ltd., Acorus Unitech Wireless
Pvt. Ltd. and Unitech Wireless (Tamilnadu) Pvt. Ltd. and sought
indemnif cation of its equity investment in Unitech Wireless Companies
amounting to Rs. 61,356,253,283 (previous year Rs. NIL) along with interest
of 18% p.a. which is equal to Rs. 27,701,688,475 (previous year Rs. NIL) as
on 31st March, 2012. Telenor has filed its claim with the Singapore
International Arbitration Centre. The Hon'ble Supreme Court cancelled
the UAS licenses issued to all the companies in 2008 by questioning the
government policy and Telenor also did a detailed due diligence prior
to investment in Unitech Wireless Companies. Based on the legal advice
obtained by the management, the Company is conf dent that the indemnity
claims of Telenor are not maintainable.
c) Income tax matter in dispute (financial year 2007-08) pending in
appeal: Rs. 210,069,833 (previous year Rs. NIL) (Amount paid under protest
by the company : Rs. 70,000,000)
d) The company subsequent to the balance sheet date, on 01.08.2012, has
received a demand pertaining to financial year 2008-09 from income tax
department amounting to Rs. 10,305,410,334. The last date for depositing
the same as per demand note is 31.08.2012. However, management based on
its evaluation has decided to contest the basis of such demand and
accordingly does not intent to deposit the amount demanded.
II. Guarantees
a) In respect of bank guarantees: Rs. 2,249,212,017 (previous year Rs.
2,164,697,908) - It includes guarantees of Rs. 33,122,510 (previous year
Rs. 15,408,803) in respect of subsidiary companies.
b) The company has given corporate guarantees of Rs. 22,178,737,135
(previous year Rs. 12,812,768,267) for raising loans from financial
institutions and banks by its subsidiaries, joint ventures and
erstwhile subsidiaries.
III. Commitments
a) Capital commitments : Rs. 27,551,749 (previous year Rs. 22,250,663)
b) Investment in 1,000,000 equity shares of Rs. 10 each at a premium of Rs.
9,990 per share aggregating of Rs. 10,000,000,000 has been made in joint
venture company, Shivalik Ventures Pvt. Ltd. An amount of Rs.
4,910,200,000 has been paid against the allotment of fully paid-up
shares. The balance securities premium of Rs. 5,089,800,000 will be
accounted for on payment.
c) The estimated amount of real estate contracts, net of advances
remaining to be executed is Rs. 8,443,707,000 (Previous year Rs.
8,850,491,000)
d) Other commitments : Rs. 64,397,700 (previous year Rs. 78,400,000)
6. Investment in shares of subsidiaries amounting to Rs. 32,520,600
(Previous year Rs. 32,520,600) are pledged as securities against loan
taken by the company. Further investment of subsidiaries in the shares
of their subsidiaries amounting to Rs. 1,000,000 (Previous year Rs.
1,000,000) are pledged as securities against loan taken by the company.
Investment in shares of joint ventures amounting to Rs. 72,500,000
(Previous year Rs. 72,500,000) are pledged as securities against loan
taken by the joint ventures.
7. ACCOUNTING OF PROJECTS WITH CO-DEVELOPER
The company is developing certain projects jointly with Pioneer Urban
Infrastructure Limited and its other group companies. All the
development expenses and sale proceeds booked during the year are
transferred to the co-developer at the year end in proportion to share
of actual land pooled by each developer.
8. EARNINGS IN FOREIGN CURRENCY
Receipts in respect of overseas projects Rs. 45,981,188 (Previous year Rs.
51,570,732).
9. (a) Unitech Vizag Projects Limited, a subsidiary of Unitech
Limited, is undertaking an Integrated Vizag Knowledge City with APIIC
at Vizag for which money has been advanced by the holding company i.e.
Unitech Limited. The company got the letter from APIIC for rescinding
the development agreement against which petition has been filed under
section 9 of The Arbitration and Conciliation Act 1996 in The court of
the Hon'ble II Additional Chief Judge, City Civil Court at Hyderabad to
stay the operation of the said letter and restraining the APIIC from
creating any third party rights with regard to project or project land.
After considering the circumstances and legal advice obtained by the
management, the company is conf dent that this will not adversely af
ect the company's investment and accordingly no provision has been
considered necessary.
(b) The company was awarded a project for development of amusement cum
theme park in Chandigarh by Chandigarh administration. The said
development agreement was unilaterally and illegally terminated by the
Chandigarh administration. The company filed a writ petition before
Hon'ble High Court of Punjab & Haryana challenging the termination of
development agreement. The matter was referred for arbitration and the
hearing is going on. The company is conf dent that it will recover the
amount invested in the project and accordingly no provision has been
considered necessary.
10. Advances for purchase of land and projects pending commencement
amounting to Rs. 16,074,305,962 disclosed under head short term loans
have been given in the normal course of business to land owning
companies/ collaborators/ projects/ purchase of land. Pending details
of land purchased and financial position of the parties, these advances
are given in respect of ongoing business transactions and are regarded
as being in the normal course of business.
11. The Company has direct and indirect investments and investment
obligation aggregating Rs. 9,020,510,728 in telecom business presently
being carried on by Unitech Wireless Companies. The impact, if any, on
the realizable value of these investments / investment obligation, on
account of the license cancellation order passed by the Hon'ble Supreme
Court of India on 2nd February, 2012, is dependent upon the steps to be
taken by DoT in respect of cancelled licenses, forthcoming auction of
2G spectrum and outcome of pending litigations / appeals. Considering
that the UAS licenses of Unitech Wireless Companies are operative till
7th September 2012 and DoT has again applied to the Hon'ble Supreme
Court for extension of time till December 2012 for auction of 2G
spectrum, the investments have been shown at book value in the f
nancial statements for the year ended 31st March, 2012.
12. The Company has received an award dated 6th July, 2012 passed by
the London Court of International Arbitration (LCIA) wherein Tribunal
has directed to invest Rs. 16,399,216,411 (previous year Rs. NIL) in Burley
Holdings Ltd. (Mauritius) so as to enable it to purchase the
investments of Cruz City 1 Mauritius Holdings (Mauritius) in the
joint-venture company, Kerrush Investments Ltd. In case we are required
to make this investment, our economic interest in the project shall
stand increased. Based on the legal advice obtained by the management,
the Company believes that this award is not enforceable and therefore,
an appeal has been filed on 3rd August, 2012 in the Hon'ble High Court
of Justice, Commercial Court, London.
13. PREVIOUS YEAR FIGURES
Prior year figures have been regrouped, rearranged and reclassified
wherever considered necessary.
14. PRIOR YEAR COMPARATIVES
Till the year ended 31st March, 2011, the company was using pre-revised
Schedule VI to the Companies Act 1956, for preparation and presentation
of its financial statements. During the year ended 31st March, 2012 ,
the revised Schedule VI notified under the Companies Act 1956, has
become applicable to the company. The company has reclassified previous
year figures to conform to this year's classification as per revised
schedule VI. The adoption of revised Schedule VI does not impact
recognition and measurement principles followed by the Company for
preparation of financial statements. However, it significantly impacts
presentation and disclosures made in the financial statements.
Consequently prior year figures are not comparable to those as per
pre-revised schedule VI requirements.
Mar 31, 2011
1. CONTINGENT LIABILITIES NOT PROVIDED FOR
1. In respect of Bank Guarantees Rs. 356.78 Crores (Rs. 347.61Crores)
It includes guarantees of Rs. 6.63 Crores (Rs. 11.00 Crores) in respect
of following Subsidiary Companies:
a. Unitech Business Parks Ltd.
b. Unitech Developers & Hotels Pvt. Ltd.
c. Unitech Realty Pvt. Ltd.
d. Unitech Reliable Projects Pvt. Ltd.
e. Unitech Real Estate Builders Ltd.
II. The company has given Corporate Guarantees of Rs. 1,281.36 Crores
(Rs. 1,649.94 Crores) for raising loans from Financial Institutions and
Banks by its subsidiaries, joint ventures and erstwhile subsidiaries.
III. In respect of liquidated damages and other claims by
clients/customers not acknowledged as debts Rs. 50.74 Crores (Rs. 17.28
Crores).
IV. Capital Commitment -
a. Investment in 1,000,000 equity shares of Rs. 10 each at a premium
of Rs. 9,990/- per share aggregating to Rs. 1,000 Crores has been made
in joint venture company, Shivalik Ventures Pvt. Ltd. An Amount of Rs.
483.52 Crores has been paid against the allotment of fully paid-up
shares. The balance securities premium of Rs. 516.48 Crores will be
accounted for on payment.
b. Other Commitments: Rs. 7.84 Crores
2. OVERSEAS OPERATIONS
During the year under review, Company had to abandon its branch
situated in Libya due to civil war and on-going internal conflicts. All
employees of the Company were safely evacuated on or before 28.02.2011
and therefore, the returns remained unaudited as on 31.03.2011. We have
been officially informed by our contractors situated in Europe that
they have activated the due procedure under International Trade Law for
"Force Majeure" and any compensation/ estimation of amounts due by the
Libyan government would materialize in due course of time.
In view therefore, no provision has been considered towards assets
belonging to the Company lying unattended at the branch in Libya. The
Management is of the view that it is premature to ascertain or quantify
loss, if any, at this stage. The Net Investment of Rs. 46.00 Crore at
the branch in Libya is unaudited and unconfirmed.
3. AMALGAMATION AND DEMERGER
(i) A Scheme of arrangement under Section 391-394 of the Companies Act,
1956 for the amalgamation of two wholly owned subsidiaries of the
Company i.e. Aditya Properties Private Limited and Unitech Holdings
Limited with the Company and for the demerger of infrastructure
undertaking (post-merger) of Unitech Limited into its wholly owned
subsidiary viz. Unitech Infra Limited, filed with Hon'ble High Court of
Delhi is pending for its approval. Hence, no effect thereto has been
given in the financial statements.
(ii) Unitech Wireless Companies have entered into a scheme of
amalgamation pursuant to which Unitech Wireless (North) Pvt. Ltd.,
Unitech Wireless (South) Pvt. Ltd., Unitech Wireless (Kolkata) Pvt.
Ltd., Unitech Wireless (Delhi) Pvt. Ltd., Unitech Wireless (East) Pvt.
Ltd., Unitech Wireless (Mumbai) Pvt. Ltd., Unitech Wireless (West) Pvt.
Ltd. and Unitech Long Distance Communication Services Pvt. Ltd. have
merged with Unitech Wireless (Tamilnadu) Pvt. Ltd. The said Scheme of
Amalgamation has been approved by Hon'ble High Court of Delhi vide
order dated 27th September, 2010 and has also been filed with the
Registrar of Companies on 1st October, 2010. Accordingly, there is now
only one entity i.e Unitech Wireless (Tamilnadu) Private Limited.
4. SHARE CAPITAL & SHARE WARRANTS
(i) Out of the total share capital, 1,581,587,500 fully paid Equity
Shares of Rs. 2/- each had been issued as Bonus Shares by
capitalization of securities premium account, general reserve and
Profit & Loss Account.
(ii) During the year, 177,500,000 Warrants were converted into equal
number of equity shares of Rs 2/- each at a premium of Rs. 48.75 per
share in compliance with the SEBI (Issue of Capital and Disclosure)
Regulations, 2009 which resulted in increase in paid up capital of the
Company by Rs. 35.50 Crores. Hence, at the end of the year, the Company
had no warrants outstanding for conversion.
5. SECURED LOANS
Nature of Security I. Debentures
- 250, 11.00% Secured Redeemable Non-convertible Debentures of
Rs.1,000,000/- each are redeemable, at par on 15th December, 2010
(Partly redeemed and balance outstanding is Rs.4.76 Crores)
- 250, 11.00% Secured Redeemable Non-convertible Debentures of
Rs.1,000,000/- each are redeemable, at par on 15th December, 2010.
- 250, 11.00% Secured Redeemable Non-convertible Debentures of
Rs.1,000,000/- each are redeemable, at par on 15th March, 2011.
- 250, 11.00% Secured Redeemable Non-convertible Debentures of
Rs.1,000,000/- each are redeemable, at par on 15th June, 2011.
- 250, 11.00% Secured Redeemable Non-convertible Debentures of
Rs.1,000,000/- each are redeemable, at par on 15th February, 2011.
- 250, 11.00% Secured Redeemable Non-convertible Debentures of
Rs.1,000,000/- each are redeemable, at par on 16th May, 2011.
- 250, 11.00% Secured Redeemable Non-convertible Debentures of
Rs.1,000,000/-each are redeemable, at par on 16th November, 2011.
- 5,000,000, 11.00% Secured Redeemable Non-convertible Debentures of
Rs.100/- each are redeemable, at par on 15th September, 2011.
- 5,000,000, 11.00% Secured Redeemable Non-convertible Debentures of
Rs.100/- each are redeemable, at par on 15th December, 2011.
- 5,000,000, 11.00% Secured Redeemable Non-convertible Debentures of
Rs.100/- each are redeemable, at par on 15th March, 2012.
- 72, 14% Secured Redeemable Non-convertible Debentures of
Rs.1,000,000/- each are redeemable, at par on 4th April, 2011.
- 74, 14% Secured Redeemable Non-convertible Debentures of
Rs.1,000,000/- each are redeemable, at par on or before 30th April,
2011.
The aforesaid Debentures are secured by equitable mortgage on certain
lands of the company, its subsidiaries and promoter group companies and
personal guarantee of Managing Director.
II. Advances against Construction Contracts of Rs. 10,085,343/- (Rs.
10,085,343/-) are secured by Hypothecation/Mortgage of vehicles,
machineries, material at sites and bank guarantees
III. Term Loan of Rs. 2,057,916,665/- (Rs. 2,496,666,666/-) from LIC
Housing Finance Ltd. and Rs. 1,957,014,402/- (Rs. 2,574,369,976/-) from
Housing Development Finance Corporation Ltd. is secured by equitable
mortgage of certain lands of the Company and its subsidiaries & further
secured by pledge of shares of the Company held by promoters.
IV. Term Loan of Rs. 300,000,000/- (Rs. NIL) from PNB Housing Finance
Limited is secured by equitable mortgage of certain lands of the
subsidiaries of the Company.
V. Term Loan of Rs. NIL (Rs. 604,451,033/-) from HDFC Asset Management
Company Ltd. is secured by equitable mortgage of certain lands of the
Company and its subsidiaries.
VI. Term Loan of Rs. 500,000,000/- (Rs. NIL) and other facilities in
the form of Bill Discounting of Rs. 239,687,724/- (Rs. NIL) from SICOM
Limited are secured by equitable mortgage of certain lands of the
Company and its subsidiaries.
VII. Term Loan of Rs. 744,868,000/- (Rs. 1,730,000,000/-) from
Infrastructure Development Finance Company Limited is secured by
equitable mortgage of certain lands of the company and its subsidiaries
and pledge of Shares of the Company held by Prakusali Investment India
Pvt. Ltd, R. V. Techno Investments Pvt Ltd and Indus Counter trade Pvt.
Ltd. (Promoter Companies) and Rs. 1,364,119,878/- (Rs.1,527,000,000/-)
from Life Insurance Corporation of India is secured by equitable
mortgage of certain lands of the Company and its subsidiaries.
VIII. Term Loan of Rs. 953,407,107/- (Rs. 1,000,000,000) from
Industrial Finance Corporation Limited is secured by equitable mortgage
of certain lands of the company.
IX. Term Loan of Rs. 492,896,788/- (Rs. NIL) from Religare Finvest
Limited is secured by first charge on certain lands of the subsidiaries
of the Company.
X. Loans from Banks are secured by hypothecation of all present and
future book debts and equitable mortgage of certain lands of the
company and its subsidiaries.
The aforesaid loans are further secured by personal guarantees of
Executive Chairman and/or the Managing Directors.
XI. Deferred Liability against land of Rs. 1,108.66 Crores (Rs. 903.27
Crores) represents the amount payable against land acquired from
Government Development Authorities on installment basis and is secured
by way of first charge on the related project land.
6. ADVANCES TO SUBSIDIARY COMPANIES FOR PURCHASE OF LAND
In pursuance of real estate activities undertaken, the company has
given advances to its wholly owned subsidiaries for purchase of land.
The said lands are being developed by the company as per Memorandum of
Understanding executed between the parties.
7. ACCOUNTING OF REAL ESTATE PROJECTS UNDERTAKEN UP TO 31st MARCH,
2004
The actual receipts and installments due of Rs. 179,150,564/- (Rs.
231,148,045/-) for the year from booking of plots/constructed
properties in real estate on projects has been credited to revenue as
sales. Against this after ascertaining profits on estimate basis as per
accounting policy No. 10(a)(i) the balance of 80% is adjusted in
revenue accounts. The final adjustment of Profit/ Loss is being made on
completion of respective project(s).
8. ACCOUNTING OF PROJECTS WITH CO-DEVELOPER
The Company is developing certain projects jointly with Pioneer Urban
Infrastructure Limited and its other group companies. All the
development expenses and sale proceeds booked during the year are
transferred to the co-developer at the year end in proportion to share
of actual land pooled by each developer.
9. PAYMENT TO AUDITORS
Statutory audit fee includes payment of Rs. 432,720/- (Rs. 370,920/-)
to Foreign Branch Auditors.
10. INVESTMENTS
a) In line with Accounting Policy No.7, no provision has been made
towards diminution in value of long term investments where the decline
is temporary in nature.
c) Investments in Shares of subsidiary companies amounting to Rs.
4,418,460,051/- (Rs. 5,335,000,000/-) have been pledged as collateral
security for raising loans by the Company, subsidiaries and its joint
ventures.
11. PROJECT IN PROGRESS
Advances against projects pending commencement amounting to Rs. 724.00
Crores (Rs. 494.47 Crores) under the head project in progress includes
advances for land though unsecured are considered good as the advances
have been given based on arrangements/ memorandum of understanding
executed by the Company with the seller or intermediary for obtaining
clear and marketable title.
12. ADVANCES RECOVERABLE
Balances grouped under Advances Recoverable in cash or in kind or value
to be received Rs 1,586.07 Crores (Rs.1,721.95 Crores) are subject to
confirmation from respective parties, though unsecured are considered
good by the management.
13. SUNDRY CREDITORS (DUE TO MICRO, SMALL AND MEDIUM SCALE ENTERPRISES)
As per information available with the company, the sundry creditors do
not include any amount due to Micro, Small and Medium Enterprises
registered under 'The Micro, Small and Medium Enterprises Development
Act' as at 31st March, 2011.
c) In accordance with "Accounting Standard 22", the Company has
recognised in its Profit & Loss Account a sum of Rs. 19,080,238/- as
Deferred Tax Assets (Net) for the Year.
(ii) The Company had entered in earlier years into a Joint Venture with
L. G. Construction Co. Limited for executing the World Bank aided
project in the State of Haryana in terms of a Joint Venture Agreement
of 8th December, 1994 sharing profit/loss in the ratio of 51:49. The
Income & expenditure of 51% of the Joint Venture has been taken in the
accounts of the Company.
14. LEASED ASSETS:
(a) The Company has taken cars/ office equipments on operating lease
basis. The lease rentals are payable by the Company on a monthly basis.
15. BENEFITS TO EMPLOYEES:
As per Accounting Standard 15 "Employee Benefits", the disclosures of
Employee benefits as defined in the Accounting Standard are given
below:
B. Deferred Benefit Plans
The Cost of providing gratuity and long term leave encashment are
determined using the projected unit credit method on the base of
Actuarial valuation techniques.
The following tables summarize the component of net benefit expense in
respect of gratuity recognized in the Profit and Loss Account as per
actuarial valuation as on 31st March, 2011.
16. RELATED PARTY DISCLOSURES
(i) Related parties are classified as:
Wholly owned Subsidiaries:
Abohar Builders Pvt. Ltd.
Aditya Properties Pvt. Ltd.
Agmon Builders Pvt. Ltd.
Agmon Projects Pvt. Ltd.
Akola Properties Ltd.
Algoa Properties Pvt. Ltd.
Alice Builders Pvt. Ltd.
Alkosi Ltd.
Aller Properties Pvt. Ltd.
Alor Golf Course Pvt. Ltd.
Alor Maintenance Pvt. Ltd.
Alor Projects Pvt. Ltd.
Alor Recreation Pvt. Ltd.
Amarprem Estates Pvt. Ltd.
Amur Developers Pvt. Ltd.
Andes Estates Pvt. Ltd.
Andros Properties Pvt. Ltd.
Angers Properties Ltd.
Angul Properties Pvt. Ltd.
Arahan Properties Pvt. Ltd.
Arcadia Build- Tech Limited
Arcadia Projects Pvt. Ltd.
Ardent Build-Tech Limited
Askot Builders Pvt. Ltd.
Avens Properties Pvt. Ltd.
Avril Properties Pvt. Ltd.
Azores Properties Ltd.
Bageris Ltd.
Bengal Unitech Universal Siliguri Projects Ltd.
Bengal Unitech Universal Townscape Ltd.
Bolemat Ltd.
Boracim Limited
Broomfield Builders Pvt. Ltd.
Broomfield Developers Pvt. Ltd.
Brucosa Ltd.
Burley Holding Ltd.
Cape Developers Pvt. Ltd.
Cardus Projects Pvt. Ltd.
Cardus Properties Pvt. Ltd.
Clarence Projects Pvt. Ltd.
Clover Projects Pvt. Ltd.
Coleus Developers Pvt.Ltd.
Colossal Infra-Developers Pvt. Ltd.
Colossal Projects Pvt. Ltd.
Comegenic Ltd.
Comfrey Developers Pvt. Ltd.
Cordia Projects Pvt. Ltd.
Crimson Developers Pvt. Ltd.
Croton Developers Pvt. ltd.
Crowbel Limited
Cynara Airlines Pvt. Ltd.
Dantas Properties Pvt. Ltd.
Deoria Estates Pvt. Ltd.
Deoria Properties Limited
Deoria Realty Pvt. Ltd.
Devoke Developers Pvt. Ltd
Dhauladhar Projects Pvt. Ltd.
Dhauladhar Properties Pvt. Ltd.
Dhruva Realty Projects Ltd.
Dibang Properties Pvt. Ltd.
Drass Projects Pvt. Ltd.
Edward Developers Pvt Ltd.
Edward Properties Pvt. Ltd.
Elbe Builders Pvt. Ltd.
Elbrus Developers Pvt. Ltd.
Elbrus Properties Pvt. Ltd.
Empecom Corporation
Erebus Projects Pvt. Ltd.
Erica Projects Pvt. Ltd.
Erode Projects Pvt. Ltd.
Falcon Projects Pvt. Ltd.
Fastnet Holdings Ltd.
Ficus Projects Pvt. Ltd.
Firisa Holdings Ltd.
Flores Projects Pvt. Ltd.
Flores Properties Ltd.
Gibson Developers Pvt. Ltd.
Girnar Infrastructures Pvt. Ltd.
Global Perspectives Ltd.
Gordon Developers Pvt. Ltd.
Gordon Projects Pvt. Ltd.
Gramhuge Holdings Ltd.
Greenwood Projects Pvt. Ltd.
Gretemia Holdings Ltd.
Halley Developers Pvt. Ltd.
Halley Projects Pvt. Ltd.
Hanak Developers Pvt Ltd
Harsil Builders Pvt. Ltd.
Harsil Properties Pvt. Ltd.
Hassan Properties Pvt. Ltd.
Hatsar Estates Pvt. Ltd.
Havelock Estates Pvt. Ltd.
Havelock Investments Ltd.
Havelock Realtors Ltd.
Havelock Schools Ltd.
Helmand Projects Pvt. Ltd.
High Strength Infra-Developers Pvt. Ltd.
High Strength Projects Pvt. Ltd.
High Vision Healthcare Pvt. Ltd.
Impactlan Ltd.
Insecond Limited
Jalore Properties Pvt Ltd
Jorhat Properties Pvt. Ltd.
Konar Developers Pvt. Ltd.
Kortel Ltd.
Koshi Builders Pvt. Ltd.
Landscape Builders Ltd.
Lavender Builders Pvt. Ltd.
Lavender Developers Pvt. Ltd.
Lavender Infra-Developers Pvt. Ltd.
Lavender Projects Pvt. Ltd.
Mahoba Builders Pvt. Ltd.
Mahoba Schools Ltd.
Malva Realtors Pvt. Ltd.
Manas Realty Projects Pvt. Ltd.
Mandarin Developers Pvt. Ltd.
Mandarin Projects Pvt. Ltd.
Mangrove Projects Private Limited
Mansar Properties Pvt. Ltd.
Marine Builders Pvt. Ltd.
Masla Builders Pvt. Ltd.
Mayurdhwaj Projects Pvt. Ltd.
Medlar Developers Pvt. Ltd.
MHW Hospitality Limited
Miraj Builders Pvt Ltd
Moore Builders Pvt. Ltd.
Moore Developers Pvt. Ltd.
Mount Everest Projects Pvt. Ltd.
Munros Projects Pvt. Ltd.
Nectrus Ltd.
Neil Schools Ltd.
Nene Properties Pvt. Ltd.
New India Construction Co. Ltd.
Niger Projects Pvt. Ltd.
Nirvana Real Estate Projects Ltd.
Nuwell Ltd.
Ojos Developers Pvt. Ltd.
Onega Properties Pvt. Ltd.
Panchganga Projects Ltd.
Panicum Projects Pvt. Ltd.
Parsley Developers Pvt. Ltd.
Plassey Builders Pvt. Ltd.
Plassey Developers Pvt. Ltd.
Prasunder Estates Pvt. Ltd.
Primrose Developers Pvt. Ltd.
Privet Developers Pvt. Ltd.
Puma Developers Pvt. Ltd.
Purus Projects Pvt. Ltd.
Purus Properties Pvt. Ltd.
Quadrangle Estates Pvt. Ltd.
Reglina Holdings Ltd.
Rhine Infrastructures Pvt. Ltd.
Richmond Infrastructures Pvt. Ltd.
Risster Holdings Ltd.
Robinia Developers Pvt. Ltd.
Ruhi Construction Co. Ltd.
Sabarmati Projects Pvt. Ltd.
Samay Properties Pvt. Ltd.
Samus Properties Pvt. Ltd.
Sangla Properties Pvt. Ltd.
Sankoo Builders Pvt. Ltd.
Sankoo Developers Pvt. Ltd.
Sanyog Builders Ltd.
Sanyog Properties Pvt. Ltd.
Sarnath Realtors Ltd.
Serveia Holdings Ltd.
Seyram Ltd.
Shrishti Buildwell Pvt. Ltd.
Sibia Builders Pvt. Ltd.
Simpson Estates Pvt. Ltd.
Sironi Properties Pvt. Ltd.
Sirur Developers Pvt. Ltd.
Somerville Developers Ltd.
Spanwave Services Ltd.
Speciality Builders & Exporters Pvt. Ltd.
Sublime Developers Pvt. Ltd.
Sublime Properties Pvt. Ltd.
Supernal Corrugation (India) Ltd.
Surfware Consultants Ltd.
Suru Properties Pvt. Ltd.
Tabas Estates Pvt. Ltd.
Technosolid Limited
Transdula Limited
Uni Homes Pvt. Ltd.
Unitech Acorus Projects Pvt. Ltd.
Unitech Agra Hi-Tech Township Ltd.
Unitech Alice Projects Pvt. Ltd.
Unitech Ardent Projects Pvt. Ltd.
Unitech Broadband Ltd.
Unitech Broadcast Ltd.
Unitech Build-Con Pvt. Ltd.
Unitech Builders & Projects Limited
Unitech Builders Ltd.
Unitech Buildwell Pvt. Ltd
Unitech Business Parks Ltd.
Unitech Capital Pvt. Ltd.
Unitech Colossal Projects Pvt. Ltd.
Unitech Commercial & Residential
Developers Pvt. Ltd.
Unitech Commercial & Residential
Projects Pvt. Ltd.
Unitech Country Club Ltd.
Unitech Cynara Projects Pvt. Ltd.
Unitech Developers & Hotels Pvt. Ltd.
Unitech Entertainment Pvt. Ltd.
Unitech Global Ltd.
Unitech Haryana SEZ Ltd.
Unitech Hi- Tech Builders Pvt. Ltd.
Unitech Hi-Tech Infrastructures Pvt. Ltd.
Unitech Hi-Tech Projects Pvt. Ltd.
Unitech Hi-Tech Realtors Pvt. Ltd.
Unitech High Vision Projects Ltd.
Unitech Holdings Ltd.
Unitech Hospitality Ltd.
Unitech Hotel Services Pvt. Ltd.
Unitech Hotels & Projects Ltd.
Unitech Hotels Ltd.
Unitech Industries & Estates Pvt. Ltd.
Unitech Industries Ltd.
Unitech Infra Ltd.
Unitech Infra-Developers Ltd.
Unitech Infra-Projects Pvt. Ltd.
Unitech Infra-Properties Ltd.
Unitech Karma Hotels Pvt Ltd
Unitech Kochi SEZ Ltd.
Unitech Konar Projects Pvt. Ltd.
Unitech Landmark Builders Pvt. Ltd.
Unitech Landscape Projects Pvt. Ltd.
Unitech Malls Ltd.
Unitech Manas Projects Pvt. Ltd.
Unitech Miraj Projects Pvt. Ltd.
Unitech Nelson Projects Pvt. Ltd.
Unitech Office Fund Trustee Pte. Ltd.
Unitech Overseas Ltd.
Unitech Overseas Projects Ltd.
Unitech Power Distribution Pvt. Ltd.
Unitech Power Projects Private Limited
Unitech Power Pvt. Ltd.
Unitech Power Transmission Ltd.
Unitech Property Management Pvt. Ltd.
Unitech Real Estate Builders Ltd.
Unitech Real Estate Developers Limited
Unitech Real Estate Management Pvt. Ltd.
Unitech Real Tech Developers Pvt. Ltd.
Unitech Real-Tech Properties Ltd.
Unitech Realty Builders Pvt. Ltd.
Unitech Realty Constructions Pvt. Ltd.
Unitech Realty Developers Ltd.
Unitech Realty Estates Pvt. Ltd.
Unitech Realty Pvt. Ltd.
Unitech Realty Solutions Pvt. Ltd.
Unitech Realty Ventures Ltd
Unitech Reliable Projects Pvt. Ltd
Unitech Residential Resorts Ltd.
Unitech Samus Projects Pvt. Ltd.
Unitech Scotia Realtors Pvt. Ltd.
Unitech Simpson Projects Pvt. Ltd.
Unitech Telecom Holdings Ltd.
Unitech Universal Developers Pvt. Ltd.
Unitech Universal Falcon Hotels Pvt. Ltd.
Unitech Universal Hotels Pvt. Ltd.
Unitech Universal Simpson Hotels Pvt. Ltd.
Unitech Valdel Hotels Pvt. Ltd.
Unitech Varanasi Hi-Tech Township Ltd.
Unitech Wireless Ltd.
United Techno-Con Pvt. Ltd.
Vitex Properties Pvt. Ltd.
Volga Realtors Pvt. Ltd.
Vostok Builders Pvt. Ltd.
Zanskar Builders Pvt. Ltd.
Zanskar Estates Pvt. Ltd.
Zanskar Projects Pvt. Ltd.
Zanskar Realtors Pvt. Ltd.
Zanskar Realty Pvt. Ltd.
Zimuret Ltd.
Other Subsidiaries :
Bengal Unitech Hospitality Pvt. Ltd.
Bengal Unitech Universal Infrastructure Pvt. Ltd.
Bengal Universal Consultants Pvt. Ltd.
Elbrus Builders Pvt. Ltd.
Gurgaon Recreations Park Ltd.
Havelock Properties Ltd.
ILam Developers Pvt. Ltd.
Kolkata International Convention Centre Ltd.
Unitech Acacia Projects Pvt. Ltd.
Unitech Hi-Tech Developers Ltd.
Unitech Hospitality Services Ltd.
Unitech Hotels Pvt. Ltd.
Unitech Hyderabad Projects Ltd.
Unitech Hyderabad Township Ltd.
Unitech Infopark Ltd.
Unitech Libya for General Contracting and Real Estate Investment
Unitech Pioneer Nirvana Recreation Pvt. Ltd.
Unitech Pioneer Recreation Ltd.
Unitech Vizag Projects Ltd.
Vectex Limited
Joint Ventures :
Arihant Unitech Realty Projects Ltd.
Arsanovia Ltd.
Elmvale Holdings Ltd.
International Recreation Parks Pvt. Ltd.
Kerrush Investments Ltd.
MNT Buildcon Private Limited
North Town Estates Pvt. Ltd.
S. B. Developers Ltd.
Sarvmangalam Builders & Developers Pvt. Ltd.
Seaview Developers Ltd.
Shantiniketan Properties Ltd.
Shivalik Ventures Pvt. Ltd.
SVS Buildcon Pvt. Ltd.
Uni-Chand Builders Pvt. Ltd.
Unitech Amusement Parks Ltd.
Unitech Developers and Projects Ltd.
Unitech Hi-Tech Structures Ltd.
Unitech Infra-Con Ltd.
Unitech LG Construction Co. Ltd. (AOP)
Unitech Realty Projects Ltd.
Unitech SAI Private Limited
Unitech Valdel Valmark Pvt. Ltd.
Unival Estates India LLP
Unival Willows Estate Pvt. Ltd.
Associates :
Millennium Plaza Ltd.
New Kolkata International Development Pvt. Ltd.
Rainview Properties Pvt. Ltd.
Simpson Unitech Wireless Pvt. Ltd.
Unitech Shivalik Realty Ltd.
Viviana Infra Developers Pvt. Ltd.
Key Management Personnel & their relatives
Name Designation Relatives Relation
Mr. Ramesh Chandra Chairman Dr. (Mrs.) Pushpa Chandra Wife
Mr. Sanjay Chandra Managing
Director Mrs. Preeti Chandra Wife
Mr. Ajay Chandra Managing
Director Mrs. Upma Chandra Wife
Group of individuals having control or significant influence over the
Company & relatives of such individual(s)
Name Designation Relatives Relation
Mrs. Varsha Bahri Mother
Ms. Minoti Bahri Non-Executive Director
Mr. Rahul Bahri Brother
Enterprises owned or significantly influenced by Key Management
Personnel or their relatives
Acorus Unitech Wireless Pvt. Ltd.
Anshil Estates Pvt. Ltd.
Cestos Unitech Wireless Pvt. Ltd.
Colossal Properties Pvt. Ltd.
Girnar Asthetics Exports Pvt. Ltd.
Harsil Projects Pvt. Ltd.
Mayfair Capital Pvt. Ltd.
Mayfair Investments Pvt. Ltd.
Prakusali Investments (India) Pvt. Ltd.
Simpson Unitech Wireless Pvt. Ltd.
Tulip Investments Ltd.
Unitech Advisors (India) Pvt. Ltd.
Unitech Energy Ventures Pvt. Ltd.
Unitech Power Ventures Private Limited
Enterprises owned or significantly influenced by Group of individuals
or their relatives who have control or significance influence over the
Company
Indrus Countertrade Pvt. Ltd.
R. V. Techno Investments Pvt. Ltd.
a. BUSINESS SEGMENTS : The business operations of the company comprise
of Construction, Development of Real Estate, Consultancy and Management
Fee.
(i) The construction activities include construction of Highways,
Roads, Powerhouses, Transmission Lines, Refineries, Hotels, Hospitals
and various types of other buildings/ structures, in India and abroad.
(ii) Real Estate development includes development of Mini Cities/
Townships, construction of residential and commercial complexes
including shopping malls and various types of dwelling units.
(iii) Consultancy and Management Fee include overseeing of project
execution, marketing of real estate Ventures for Associate and Joint
Ventures.
b. GEOGRAPHICAL SEGMENTS : For the purposes of geographical
segmentation the consolidated sales and other figures are divided into
two segments - India & Overseas (Libya). Since the conditions
prevailing in India are uniform, the Company's business does not fall
under different geographical segments as defined by AS-17 "Segment
Reporting".
17. UNCLAIMED DIVIDEND:
No amount is due and outstanding as unclaimed dividend for more than
seven year to be transferred to Investor Education & Protection Fund.
18. QUANTITATIVE INFORMATION
As per the legal opinion obtained by the management, the provisions of
clause 3(ii) of Schedule VI of Part II of Companies Act, 1956 are not
applicable to the company and as such no quantitative details are
given.
19. EARNINGS IN FOREIGN CURRENCY
Receipts in respect of overseas projects Rs.51,570,732/- (Rs.
253,431,083/-).
Note: The figures in serial no. 28 and 29 do not include the
transactions/ expenses incurred at foreign Sites/Branch.
20. PREVIOUS YEAR FIGURES
Figures in brackets are in respect of the previous year, which have
been regrouped and rearranged wherever considered necessary.
21. SCHEDULES TO ACCOUNTS
Schedules 1 to 16 forms an integral part of the Balance Sheet and
Profit and Loss Account and are duly authenticated.
Mar 31, 2010
1. CONTINGENT LIABILITIES NOT PROVIDED FOR
(I) In respect of Bank Guarantees Rs. 347.61Crores (Rs. 330.18 Crores)
It includes, guarantees of Rs. 11.00 Crores (Rs. 6.72 Crores) in
respect of following Subsidiary Companies:
(a) Quadrangle Estates Pvt. Ltd.
(b) Unitech Business Parks Ltd.
(c) Unitech Developers & Hotels Pvt. Ltd.
(d) Unitech Realty Pvt. Ltd.
(e) Unitech Reliable Projects Pvt. Ltd.
(f) Unitech Real Estate Builders Ltd.
(II) The company has given Corporate Guarantees of Rs. 1649.94 Crores
(Rs. 4227.29 Crores) for raising Loans from Financial Institutions and
Banks by its subsidiaries, joint ventures and erstwhile subsidiaries.
(III) In respect of Liquidated damages and other claims by clients /
customers not acknowledged as debts Rs 17.28 Crores (Rs. 20.60 Crores).
(IV) Capital Commitment
Investment in 10,00,000 equity shares of Rs. 10 each at a premium of
Rs. 9990/-per share aggregating of Rs. 1000 crore has been made in
joint venture company, Shivalik Ventures Pvt. Ltd. An Amount of Rs.
442.77 crore has been paid against the allotment of fully paid-up
shares. The balance securities premium of Rs.557.23 crores will be
accounted for on payment.
2. SHARE CAPITAL & SHARE WARRANTS
(i) Out of the total share capital, 1,581,587,500 fully paid Equity
Shares of Rs. 2/- each have been issued as Bonus Shares by
capitalization of securities premium account, general reserve and
Profit & Loss Account.
(ii) Out of the total share capital, 421,064,935 Equity Shares of Rs.
2/- each have been allotted at a premium of Rs. 36.50 per share on
22.04.2009 and 344,361,112 equity shares of Rs. 2/- each have been
allotted at a premium of Rs. 79/- per share on 03.07.2009 to Qualified
Institutional Buyers (QIBs) pursuant to Chapter XIII-A of erstwhile
Securities and Exchange Board of India (Disclosure & Investor
Protection) Guidelines, 2000.
(iii) 227,500,000 Share Warrants have been allotted on June 29, 2009,
convertible into equal number of Equity Shares of face value of Rs. 2/-
each at a premium of Rs. 48.75 per Equity Share to Harsil Projects
Pvt. Ltd., one of the promoter group company. For these warrants, the
allottee has already paid Rs. 12.69 per warrant aggregating to Rs.
288.64 Crores (25%). Out of the said warrants, 5,00,00,000 Warrants
were converted into equal number of equity Shares of Rs. 2/- each on
March 29, 2010 upon receipt of Rs. 190.31 Crores (75%) against these
warrants and 25% of the issue value has been adjusted in the amount
already received from the allottee. The said issue of shares resulted
into increase in Promoters holding from 43.84% to 45%. Earning per
share has been adjusted on account of increase in Equity Share capital
due to issue of above said shares during the financial year. For the
balance of Warrants, right to exercise conversion option is available
upto 28th December, 2010.
Pursuant to the transactions referred in (ii) & (iii) above, the paid
up share capital of the Company is increased by Rs. 163.08 Crores.
3. SECURED LOANS Nature of Security I. Debentures
250, 11.00% Secured Redeemable Non-convertible Debentures of
Rs.10,00,000/-each are redeemable, at par on 15th June 2010. 250,
11.00% Secured Redeemable Non-convertible Debentures of
Rs.10,00,000/-each are redeemable, at par on 15th September 2010.
250, 11.00% Secured Redeemable Non-convertible Debentures of
Rs.10,00,000/-each are redeemable, at par on 15th December 2010 250,
11.00% Secured Redeemable Non-convertible Debentures of
Rs.10,00,000/-each are redeemable, at par on 15th September 2010.
250, 11.00% Secured Redeemable Non-convertible Debentures of
Rs.10,00,000/-each are redeemable, at par on 15th December 2010. 250,
11.00% Secured Redeemable Non-convertible Debentures of
Rs.10,00,000/-each are redeemable, at par on 15th March 2011. 250,
11.000% Secured Redeemable Non-convertible Debentures of
Rs.10,00,000/-each are redeemable, at par on 15th June 2011. 250,
11.00% Secured Redeemable Non-convertible Debentures of
Rs.10,00,000/-each are redeemable, at par on 15th November 2010. 250,
11.00% Secured Redeemable Non-convertible Debentures of
Rs.10,00,000/-each are redeemable, at par on 15th February 2011. 250,
11.00% Secured Redeemable Non-convertible Debentures of
Rs.10,00,000/-each are redeemable, at par on 16th May 2011. 250,
11.00% Secured Redeemable Non-convertible Debentures of
Rs.10,00,000/-each are redeemable, at par on 16th November 2011.
50,00,000,11.00% Secured Redeemable Non-convertible Debentures of
Rs.100/-each are redeemable, at par on 15th September 2011.
50,00,000,11.00% Secured Redeemable Non-convertible Debentures of
Rs.100/-each are redeemable, at par on 15th December 2011.
50,00,000,11.00% Secured Redeemable Non-convertible Debentures of
Rs.100/-each are redeemable, at par on 15th March 2012. 100, 14%
Secured Redeemable Non-convertible Debentures of Rs.10,00,000/-each are
redeemable, at par on 15th April 2010. 72, 14% Secured Redeemable
Non-convertible Debentures of Rs.10,00,000/-each are redeemable, at par
on 15th May 2010. 72, 14% Secured Redeemable Non-convertible
Debentures of Rs.10,00,000/-each are redeemable, at par on 15th June
2010. 72, 14% Secured Redeemable Non-convertible Debentures of
Rs.10,00,000/-each are redeemable, at par on 15th July 2010. 72, 14%
Secured Redeemable Non-convertible Debentures of Rs.10,00,000/-each are
redeemable, at par on 15th August 2010. 72, 14% Secured Redeemable
Non-convertible Debentures of Rs.10,00,000/-each are redeemable, at par
on 15th September 2010. 72, 14% Secured Redeemable Non-convertible
Debentures of Rs.10,00,000/-each are redeemable, at par on 15th
October 2010. 72, 14% Secured Redeemable Non-convertible Debentures
of Rs.10,00,000/-each are redeemable, at par on 15th November 2010.
72, 14% Secured Redeemable Non-convertible Debentures of
Rs.10,00,000/-each are redeemable, at par on 15th December 2010. 74,
14% Secured Redeemable Non-convertible Debentures of Rs.10,00,000/-each
are redeemable, at par on 15th January 2011. 16456, 14% Secured
Redeemable Non-convertible Debentures of Rs. 67,000/-each are
redeemable, at par on 12th April 2010. 7463, 14% Secured Redeemable
Non-convertible Debentures of Rs. 67,000/-each are redeemable, at par
on 30th June 2010. 7467, 14% Secured Redeemable Non-convertible
Debentures of Rs. 67,000/-each are redeemable, at par on 24th
September 2010. 150, 14.00% Secured Redeemable Non-convertible
Debentures of Rs.5,00,000/-each are redeemable, at par on 21st March
2010. 150, 14.00% Secured Redeemable Non-convertible Debentures of
Rs.5,00,000/-each are redeemable, at par on 21st April 2010. 150,
14.00% Secured Redeemable Non-convertible Debentures of
Rs.5,00,000/-each are redeemable, at par on 21st May 2010. 250,
14.00% Secured Redeemable Non-convertible Debentures of
Rs.5,00,000/-each are redeemable, at par on 21st June 2010. 250,
14.00% Secured Redeemable Non-convertible Debentures of
Rs.5,00,000/-each are redeemable, at par on 21st July 2010. 250,
14.00% Secured Redeemable Non-convertible Debentures of
Rs.5,00,000/-each are redeemable, at par on 21st August 2010. 199,
14.00% Secured Redeemable Non-convertible Debentures of
Rs.5,00,000/-each are redeemable, at par on 21st September 2010. 150,
14.00% Secured Redeemable Non-convertible Debentures of
Rs.5,00,000/-each are redeemable, at par on 25th March 2010. 180,
14.00% Secured Redeemable Non-convertible Debentures of
Rs.5,00,000/-each are redeemable, at par on 26th April 2010. 180,
14.00% Secured Redeemable Non-convertible Debentures of
Rs.5,00,000/-each are redeemable, at par on 25th May 2010. 180,
14.00% Secured Redeemable Non-convertible Debentures of
Rs.5,00,000/-each are redeemable, at par on 25th June 2010. 180,
14.00% Secured Redeemable Non-convertible Debentures of
Rs.5,00,000/-each are redeemable, at par on 26th July 2010. 180,
14.00% Secured Redeemable Non-convertible Debentures of
Rs.5,00,000/-each are redeemable, at par on 25th August 2010. 125,
14.00% Secured Redeemable Non-convertible Debentures of
Rs.5,00,000/-each are redeemable, at par on 27th September 2010. 138,
14.00% Secured Redeemable Non-convertible Debentures of
Rs.5,00,000/-each are redeemable, at par on 25th March 2010.
200, 14.00% Secured Redeemable Non-convertible Debentures of
Rs.5,00,000/-each are redeemable, at par on 26th April 2010. 200,
14.00% Secured Redeemable Non-convertible Debentures of
Rs.5,00,000/-each are redeemable, at par on 25th May 2010. 200,
14.00% Secured Redeemable Non-convertible Debentures of
Rs.5,00,000/-each are redeemable, at par on 25th June 2010. 200,
14.00% Secured Redeemable Non-convertible Debentures of
Rs.5,00,000/-each are redeemable, at par on 26th July 2010. 250,
14.00% Secured Redeemable Non-convertible Debentures of
Rs.5,00,000/-each are redeemable, at par on 25th August 2010. 250,
14.00% Secured Redeemable Non-convertible Debentures of
Rs.5,00,000/-each are redeemable, at par on 27th September 2010.
The aforesaid Debentures are secured by equitable mortgage on certain
lands of the company, its subsidiaries and promoter group companies and
personal guarantee of Executive Chairman and/or Managing Director(s).
II. Advances against Construction Contracts Rs. 10,085,343/- (Rs.
18,972,068/-) are secured by Hypothecation/Mortgage of Vehicles,
machineries, material at sites and bank guarantees
III. Term Loan of Rs. 2,496,666,666/- (Rs. 2,031,000,000/-) from LIC
Housing Finance Ltd. and Rs. 2,574,369,976/- (Rs. 2,534,429,237/-) from
Housing Development Finance Corporation Ltd. and Term Loan from Housing
Development Finance Corporation Ltd is secured by equitable mortgage of
certain lands of the Company and its subsidiaries & further secured by
pledge of shares of the Company held by promoters.
IV. Term Loan of Rs. 604,451,033/- (Rs. 2,234,522,355/-) from HDFC
Asset Management Company Ltd. are secured by equitable mortgage of
certain lands of the Company and its subsidiaries.
V. Term Loan of Rs. NIL (Rs. 557,829,512/-) from KUL Loan Trust, Rs.
NIL (Rs. 297,868,249/-) from KUT Loan Trust and Rs.NIL (Rs.
500,000,000/-) from Receivable Securitisation Trust à Series VIII were
secured by equitable mortgage of certain lands of the company and its
subsidiaries.
VI. Term Loan of Rs.1,730,000,000/- (Rs.1,978,359,695/-) from
Infrastructure Development Finance Company Limited is secured by
equitable mortgage of certain lands of the company and its subsidiaries
and pledge of Shares of the Company held by Prakusali Investment India
Pvt. Ltd, R. V. Techno Investments Pvt Ltd and Indus Counter trade Pvt.
Ltd. (Promoter Companies) and Rs. 1,527,000,000/- ( Rs. 2,000,000,000)
from Life Insurance Corporation of India is secured by equitable
mortgage of certain lands of the Company and its subsidiaries.
VII. Term Loan of Rs.1,000,000,000/- (Rs.NIL) from Industrial Finance
Corporation Limited is secured by equitable mortgage of certain lands
of the company
VIII.Term Loan of Rs. NIL (Rs. 1,019,556,272/-) from Cumulative
Investment & Trading Co. Pvt. Ltd. was secured by pledge of shares of
certain subsidiaries and secured against the Hypothecation of Machinery
and vehicles.
IX. Loans from Banks are secured by hypothecation of all present and
future book debts and equitable mortgage of certain lands of the
company and its subsidiaries.
The aforesaid loans are further secured by personal guarantees of
Executive Chairman and/or the Managing Director(s).
4. ADVANCES TO SUBSIDIARY COMPANIES FOR PURCHASE OF LAND
In pursuance of real estate activities undertaken, the company has
given advances to its wholly Owned subsidiaries for purchase of land.
The said lands are being developed by the company as per Memorandum of
Understanding executed between the parties.
5. ACCOUNTING OF REAL ESTATE PROJECTS UNDERTAKEN UP TO 31st March,
2004
The actual receipts and installments due of Rs. 231,148,045/- (Rs.
457,615,788/-) for the year from booking of plots/constructed
properties in real estate on projects has been credited to revenue as
sales. Against this after ascertaining profits on estimate basis as per
accounting policy No. 10(a)(i) the balance of 80% is adjusted in
revenue accounts. The final adjustment of Profit/Loss is being made on
completion of respective project(s).
6. ACCOUNTING OF PROJECTS WITH CO-DEVELOPER
The Company is developing certain projects jointly with Pioneer Urban
Infrastructure Limited and its other group companies. All the
development expenses and sale proceeds booked during the year are
transferred to the co-developer at the year end in proportion to share
of actual land pooled by each developer.
7. PAYMENT TO AUDITORS
Statutory audit fee includes payment of Rs. 307,920/- (Rs. 370,900/-)
to Foreign Branch Auditors.
8. INVESTMENTS
(a) In line with Accounting Policy No.6, no provision has been made
towards diminution in value of long term investments where the decline
is temporary in nature. However, no provision for diminution in value
of its Investments in Unitech Power Transmission Limited has been made
as the management believes that the losses are not permanent in nature
as its total shareholding has been bought back by the Company and it is
being now continuously supported for its reconstructing process.
9. SUNDRY CREDITORS (DUE TO MICRO, SMALL AND MEDIUM SCALE ENTERPRISES)
As per information available with the company, the sundry creditors do
not include any amount due to Micro, Small and Medium Enterprises
registered under ÃThe Micro, Small and Medium Enterprises Development
Act as at 31st March 2010.
10. LEASED ASSETS:
(a) The Company has taken cars/ office equipment on operating lease
basis. The lease rental are payable by the Company on a monthly basis.
11. BENEFITS TO EMPLOYEES:
As per Accounting Standard 15 ÃEmployee BenefitsÃ, the disclosures of
Employee benefits as defined in the Accounting Standard are given
below:
Deferred Benefit Plan
The Cost of providing gratuity and Long term leave encashment are
determined using the projected unit credit method on the base of
Actuarial valuation techniques.
The following tables summarize the component of net benefit expense in
respect of gratuity recognized in the Profit and Loss Account as per
actuarial valuation as on 31st March 2010
12. RELATED PARTY DISCLOSURES Related parties are classified as:
Wholly owned Subsidiaries:
Abrus Properties Pvt. Ltd.
Abohar Builders Pvt. Ltd.
Acorus Builders Pvt. Ltd.
Acorus Projects Pvt. Ltd.
Acorus Unitech Wireless Pvt. Ltd.
Wholly owned Subsidiaries:
Aditya Properties Pvt. Ltd.
Agmon Builders Pvt. Ltd.
Agmon Projects Pvt. Ltd.
Akola Properties Ltd.
Algoa Properties Pvt. Ltd.
Wholly owned Subsidiaries:
Alice Builders Pvt. Ltd.
Aller Properties Pvt. Ltd.
Allium Developers Pvt. Ltd.
Alor Golf Course Pvt. Ltd.
Alor Maintenance Pvt. Ltd.
Alor Projects Pvt. Ltd.
Alor Recreation Pvt. Ltd.
Anise Projects Pvt. Ltd.
Amarprem Estates Pvt. Ltd.
Amur Developers Pvt. Ltd.
Andes Estates Pvt. Ltd.
Andros Properties Pvt. Ltd.
Angers Properties Ltd.
Angul Properties Pvt. Ltd.
Arahan Properties Pvt. Ltd.
Aral Properties Ltd.
Arcadia Build- Tech Limited
Arcadia Projects Pvt. Ltd.
Askot Builders Pvt. Ltd.
Aster Developers & Estates Pvt. Ltd.
Aswan Properties Pvt. Ltd.
Avena Projects Pvt. Ltd.
Avens Properties Pvt. Ltd.
Avril Properties Pvt. Ltd.
Azores Properties Ltd.
Bengal Unitech Universal Siliguri Projects Ltd.
Bengal Unitech Universal Townscape Ltd.
Broomfield Builders Pvt. Ltd.
Broomfield Developers Pvt. Ltd.
Calamus Developers Pvt. Ltd.
Calamus Projects Private Limited
Cape Developers Pvt. Ltd.
Cardus Projects Pvt. Ltd.
Cardus Properties Pvt. Ltd.
Cestos Projects Private Limited
Cestos Unitech Wireless Pvt. Ltd.
Chintpurni Construction Pvt. Ltd.
Cistus Properties Pvt. Ltd.
Clarence Projects Pvt. Ltd.
Clivia Developers Pvt. Ltd.
Clover Projects Pvt. Ltd.
Coleus Developers Pvt.Ltd.
Colossal Infra-Developers Pvt. Ltd.
Colossal Projects Pvt. Ltd.
Comfrey Developers Pvt. Ltd.
Cordia Projects Pvt. Ltd.
Costus Developers Pvt Ltd
Crimson Developers Pvt. Ltd.
Croton Developers Pvt. ltd.
Cynara Airlines Pvt. Ltd.
Danea Properties Pvt. Ltd.
Dantas Properties Pvt. Ltd.
Dausa Builders Pvt. Ltd.
New India Construction Co. Ltd.
Deoria Estates Pvt. Ltd.
Deoria Properties Limited
Deoria Realty Pvt. Ltd.
Devoke Developers Pvt. Ltd
Dhauladhar Projects Pvt. Ltd.
Dhauladhar Properties Pvt. Ltd.
Dhruva Realty Projects Ltd.
Dibang Properties Pvt. Ltd.
Drass Projects Pvt. Ltd.
Drass Properties Pvt. Ltd.
Edward Developers Pvt Ltd
Edward Properties Pvt. Ltd.
Egmont Properties Pvt. Ltd.
Elbe Builders Pvt. Ltd.
Elbrus Developers Pvt. Ltd.
Elbrus Properties Pvt. Ltd.
Erebus Projects Pvt. Ltd.
Erica Projects Pvt. Ltd.
Erode Projects Pvt. Ltd.
Ficus Builders Pvt. Ltd.
Falcon Projects Pvt. Ltd.
Ficus Projects Pvt. Ltd.
Flores Projects Pvt. Ltd.
Flores Properties Ltd.
Gibson Developers Pvt. Ltd.
Girnar Infrastructures Pvt. Ltd.
Glen Developers & Estates Pvt. Ltd.
Global Perspectives Ltd.
Gordon Developers Pvt. Ltd.
Quadrangle Estates Pvt. Ltd.
Rainview Properties Pvt. Ltd.
Rhine Infrastructures Pvt. Ltd.
Richmond Infrastructures Pvt. Ltd.
Robinia Developers Pvt. Ltd.
Rosemary developers Pvt. Ltd.
Ruhi Construction Co. Ltd.
Sabarmati Projects Pvt. Ltd.
Samay Properties Pvt. Ltd.
Samus Properties Pvt. Ltd.
Sangla Properties Pvt. Ltd.
Sankoo Builders Pvt. Ltd.
Sankoo Developers Pvt. Ltd.
Sanyog Builders Ltd.
Sanyog Properties Pvt. Ltd.
Sarnath Builders Ltd.
Sarnath Realtors Ltd.
Shrishti Buildwell Pvt. Ltd.
Sibia Builders Pvt. Ltd.
Simpson Estates Pvt. Ltd.
Sironi Properties Pvt. Ltd.
Sirur Developers Pvt. Ltd.
Somerville Developers Ltd.
Sublime Developers Pvt. Ltd.
Sublime Properties Pvt. Ltd.
Supernal Corrugation India Ltd.
Suru Properties Pvt. Ltd.
Tabas Estates Pvt. Ltd.
Uni Homes Pvt. Ltd.
Unitech Aster Projects Pvt Ltd
Unitech Agra Hi-Tech Township Ltd.
Unitech Alice Projects Pvt. Ltd.
Unitech Ardent Projects Pvt. Ltd.
Unitech Broadband Ltd.
Unitech Broadcast Ltd.
Unitech Build-Con Pvt. Ltd.
Unitech Builders Ltd.
Unitech Buildwell Pvt. Ltd
Unitech Business Parks Ltd.
Unitech Capital Pvt. Ltd
Unitech Colossal Projects Pvt. Ltd.
Unitech Comm. & Res. Developers Pvt. Ltd.
Unitech Commercial & Residential Projects
Pvt. Ltd.
Unitech Country Club Ltd.
Unitech Cynara Projects Pvt. Ltd.
Unitech Developers & Hotels Pvt. Ltd
Unitech Develop Well Pvt. Ltd.
Unitech Entertainment Pvt. Ltd
Unitech Haryana SEZ Ltd.
Unitech High Vision Projects Ltd.
Unitech Realty Ventures Ltd.
Alkosi Ltd.
Bageris Ltd.
Bolemat Ltd.
Boracim Limited
Brucosa Ltd.
Burley Holding Ltd.
Comegenic Ltd.
Crowbel Limited
Empecom Corporation
Fastnet Holdings Ltd.
Firisa Holdings Ltd.
Gramhuge Holdings Ltd.
Gretemia Holdings Ltd.
Impactlan Ltd.
Insecond Limited
Kortel Ltd.
Gordon Projects Pvt. Ltd.
Greenline Builders Ltd.
Greenwood Projects Pvt. Ltd.
Halley Developers Pvt. Ltd.
Halley Projects Pvt. Ltd.
Hallet Properties Pvt Limited
Hanak Developers Pvt Ltd
Harsil Builders Pvt. Ltd.
Harsil Properties Pvt. Ltd.
Hassan Properties Pvt. Ltd.
Hatsar Estates Pvt. Ltd.
Hatsar Projects Pvt Ltd.
Havelock Estates Pvt. Ltd.
Havelock Infra- Developers Pvt. Ltd.
(Formerly Carex Developers Pvt. Ltd.
Havelock Investments Ltd.
Havelock Realtors Ltd.
Havelock Schools Ltd.
Helmand Projects Pvt. Ltd.
Helmand Properties Pvt. Ltd.
High Strength Infra-Developers Pvt. Ltd.
High Strength Projects Pvt. Ltd.
High Vision Healthcare Pvt. Ltd.
Hosta Properties Pvt. Ltd.
Jalore Properties Pvt Ltd
Jorhat Properties Pvt. Ltd.
Justicia Builders Pvt. Ltd.
Kolar Developers Pvt. Ltd.
Konar Developers Pvt. Ltd.
Konar Estates Pvt. Ltd.
Koshi Builders Pvt. Ltd.
Laksar Projects Pvt. Ltd.
Landscape Builders Ltd.
Lavender Builders Pvt. Ltd.
Lavender Developers Pvt. Ltd.
Lavender Infra-Developers Pvt. Ltd.
Lavender Projects Pvt. Ltd.
Macaw Properties Pvt. Ltd.
Mahoba Builders Pvt. Ltd.
Mahoba Schools Ltd.
Malva Realtors Pvt. Ltd.
Manas Realty Projects Pvt. Ltd.
Mandarin Developers Pvt. Ltd.
Mandarin Projects Pvt. Ltd.
Mangrove Projects Private Limited
Mansar Properties Pvt. Ltd.
Marine Builders Pvt. Ltd.
Marine Developers & Projects Pvt. Ltd.
Masla Builders Pvt. Ltd.
Mayurdhwaj Projects Pvt. Ltd.
Medlar Developers Pvt. Ltd.
MHW Hospitality Limited
Miraj Builders Pvt Ltd
Mirik Realtors Pvt. Ltd.
Moore Builders Pvt. Ltd.
Moore Developers Pvt. Ltd.
Mount Everest Projects Pvt. Ltd.
Munros Projects Pvt. Ltd.
Neil School Limited
Nene Properties Pvt. Ltd.
Niger Projects Pvt ltd
Nirvana Real Estate Projects Ltd.
Ojos Developers Pvt. Ltd.
Onega Properties Pvt. Ltd.
Panchganga Projects Ltd.
Panicum Developers Pvt. Ltd.
Panicum Projects Pvt. Ltd.
Parsley Developers Pvt. Ltd.
Plassey Builders Pvt. Ltd.
Plassey Developers Pvt. Ltd.
Prasunder Estates Pvt. Ltd.
Primrose Developers Pvt. Ltd.
Privet Developers Pvt. Ltd.
Puma Developers Pvt. Ltd.
Purus Projects Pvt. Ltd.
Purus Properties Pvt. Ltd.
Unitech Hi- Tech Builders Pvt. Ltd.
Unitech Hi-Tech Infrastructures Pvt. Ltd.
Unitech Hi-Tech Projects Pvt. Ltd.
Unitech Hi-Tech Realtors Pvt. Ltd.
Unitech Holdings Ltd.
Unitech Hospitality Ltd.
Unitech Hotel Services Pvt Ltd
Unitech Hotels & Projects Ltd.
Unitech Industries & Estates Pvt. Ltd.
Unitech Industries Ltd.
Unitech Infra-Developers Ltd.
Unitech Infra-Projects Pvt. Ltd.
Unitech Infra-Properties Ltd.
Unitech Karma Hotels Pvt Ltd
Unitech Kochi-SEZ Ltd.
Unitech Konar Projects Pvt. Ltd.
Unitech Landmark Builders Pvt. Ltd.
Unitech Landscape Projects Pvt. Ltd.
Unitech Manas Projects Pvt. Ltd.
Unitech Miraj Projects Pvt. Ltd.
Unitech Nelson Projects Pvt. Ltd.
Unitech Pioneer Recreation Ltd.
Unitech Power Distribution Pvt. Ltd.
Unitech Power Pvt. Ltd.
Unitech Power Transmission Ltd.
Unitech Property Management Pvt. Ltd.
(Formerly Unising Projects Pvt. Ltd.)
Unitech Real Estate Builders Ltd.
Unitech Real Estate Developers Limited
Unitech Real Estate Management Pvt. Ltd.
Unitech Real Tech Developers Pvt. Ltd.
Unitech Real-Tech Properties Ltd.
Unitech Realty Builders Pvt. Ltd.
Unitech Realty Conglomerate Ltd.
Unitech Realty Constructions Pvt. Ltd.
Unitech Realty Developers Ltd.
Unitech Realty Estates Pvt. Ltd.
Unitech Realty Pvt. Ltd.
Unitech Realty Solutions Pvt. Ltd.
Unitech Reliable Projects Pvt. Ltd
Unitech Residential Resorts Ltd.
Unitech Samus Projects Pvt. Ltd.
Unitech Scotia Realtors Pvt. Ltd.
Unitech Service Apartments Ltd.
Unitech Simpson Projects Pvt. Ltd.
Unitech Sublime Projects Pvt Ltd
Unitech Telecom Holdings Ltd.
Unitech Universal Agmon Hotels Pvt. Ltd.
Unitech Universal Developers Pvt Ltd
Unitech Universal Falcon Hotels Pvt. Ltd.
Unitech Universal Hospitality Pvt Ltd.
Unitech Universal Hotels Pvt Ltd.
Unitech Universal Scotia Hotels Pvt. Ltd.
Unitech Universal Simpson Hotels Pvt. Ltd.
Unitech Urbane Projects Pvt. Ltd.
Unitech Urbane Realty Pvt. Ltd
Unitech Valdel Hotels Pvt Ltd
Unitech Varanasi Hi-Tech Township Ltd.
Unitech Wireless Ltd.
United Techno-Con Pvt. Ltd.
Urbane Land Renewal Company Pvt Ltd.
Vitex Properties Pvt. Ltd.
Volga Realtors Pvt ltd
Vostok Builders Pvt. Ltd.
Zanskar Builders Pvt. Ltd.
Zanskar Estates Pvt. Ltd.
Zanskar Projects Pt. ltd.
Zanskar Realtors Pvt. Ltd.
Zanskar Realty Pvt. Ltd.
Nectrus Ltd.
Nuwell Ltd.
Risster Holdings Ltd.
Serveia Holdings Ltd.
Seyram Ltd.
Spanwave Services Ltd.
Surfware Consultants Ltd.
Technosolid Limited
Transdula Limited
Unitech Global Ltd.
Unitech Hotels Ltd.
Unitech Malls Ltd.
Unitech Office Fund Trustee Pte. Ltd.
Unitech Overseas Ltd.
Vectex Limited
Zimuret Ltd.
Other Subsidiaries:
Bengal Unitech Universal Infrastructure Pvt. Ltd.
Bengal Universal Consultants Pvt. Ltd.
Elbrus Builders Pvt. Ltd.
Havelock Properties Ltd.
ILam Developers Pvt. Ltd.
Kolkata International Convention Centre Ltd.
Unitech Hotels Pvt. Ltd.
Unitech Infopark Ltd.
Unitech Hi-Tech Developers Ltd.
Unitech Hyderabad Projects Ltd.
Unitech Hyderabad Township Ltd.
Unitech Pioneer Nirvana Recreation Pvt. Ltd. (Formerly Colossal
Developers Pvt. Ltd.)
Unitech Vizag Projects Ltd.
Unitech Hospitality Services Ltd.
Gurgaon Recreations Park Ltd.
Unitech Acacia Projects Pvt. Ltd.
Joint Ventures:
Arihant Unitech Realty Projects Ltd.
Shivalik Ventures Pvt. Ltd.
Seaview Developers Ltd.
International Recreation Parks Pvt. Ltd.
MNT Buildcon Private Limited
SVS Buildcon Private Limited
North Town Estates Pvt. Ltd.
Shantiniketan Properties Ltd
Unitech Ltd.-L.G. Construction Co. Ltd. (Association of Person)
Unitech Amusement Parks Ltd.
Unitech Hi-Tech Structures Ltd.
Unitech Developers and Projects Ltd.
Unitech Realty Projects Ltd.
Unitech Infra-Con Ltd.
Unitech SAI Private Limited
Unitech Valdel Valmark Pvt. Ltd.
Unival Estates India LLP
Associates:
Millennium Plaza Ltd.
S. B. Developers Ltd.
Uni-Chand Builders Pvt. Ltd.
Unitech Wireless (East) Pvt. Ltd.
Unitech Wireless (Mumbai) Pvt. Ltd.
Unitech Wireless (South) Pvt. Ltd.
Unitech Wireless (Tamilnadu) Pvt. Ltd.
Sarvmangalam Builders & Developers Pvt. Ltd.
New Kolkata International Development Pvt ltd
Unitech Wireless (Delhi) Pvt. Ltd
Unitech Wireless (Kolkata) Pvt. Ltd.
Unitech Wireless (North) Pvt. Ltd.
Unitech Wireless (West) Pvt. Ltd.
Key management personnel:
Mr. Ramesh Chandra
Mr. Ajay Chandra
Mr. Sanjay Chandra
Enterprises over which Key management personnel / individual owning
directly or indirectly, an interest in the voting power of the
reporting enterprise that give them control or significant influence
over the enterprise:
Mayfair Investments Pvt. Ltd. Mayfair Capital Pvt. Ltd.
Prakusali Investments (India) Pvt. Ltd. R. V. Techno Investments Pvt.
Ltd.
Tulip Investments Ltd. Indrus Countertrade Pvt. Ltd. Harsil Projects
Pvt. Ltd.
Individuals owning directly or indirectly, an interest in the voting
power of the reporting enterprise and relatives of any such individual:
Mr. Ramesh Chandra Ms. Minoti Bahri
Mr. Ajay Chandra Mrs. Varsha Bahri
Mr. Sanjay Chandra Mr. Rahul Bahri
Enterprises over which Key Managerial personnel / individual exercise
significant influences:
Anshil Estates Pvt. Ltd Unitech Energy Ventures Pvt. Ltd. (formerly
known as CIG Unitech Properties Pvt. Ltd.) Unitech Realty Investor
India Pvt. Ltd. Simpson Unitech Wireless Pvt. Ltd.
13. UNCLAIMED DIVIDEND: No amount is due and outstanding as unclaimed
dividend for more than seven years to be transferred to Investor
Education & Protection Fund.
14. QUANTITATIVE INFORMATION
As per the legal opinion obtained by the management, the provisions of
clause 3(ii) of Schedule VI of Part II of Companies Act, 1956 are not
applicable to the company and as such no quantitative details are
given.
15. EARNINGS IN FOREIGN CURRENCY
Receipts in respect of overseas projects Rs.253,431,083/-
(Rs.16,813,350/-).
Note: The figures in serial 26 and 27 do not include the transactions/
expenses incurred at foreign Sites / branch.
16. LIABILITIES AND ASSETS
Balances grouped under Sundry Debtors, Sundry Creditors, and Advances
from Customers and Advances Recoverable in cash or in kind are subject
to confirmation from respective parties.
17. PREVIOUS YEAR FIGURES
Figures in brackets are in respect of the previous year, which have
been regrouped and rearranged wherever considered necessary.
18. SCHEDULES TO ACCOUNTS
Schedules 1 to 16 forms an integral part of the Balance Sheet and
Profit and Loss Account and are duly authenticated.