1. Term Loan from Bank is secured against Hypothecation of Specific
Vehicle purchased.
2. Term Loan from Diwan Housing Finance Corporation Limited is
Mortgage of Land and Building of the Project India Colony admeasuring
about 1890050.76 Sq. ft. At Sruvey No. 206/1, 206/7, 206/9, 207/8,.
2079-10-11-12-13-14, at Village Vevji, Tal. Talsari, Dist. Thane and
Charge of entire receivable of above projects and personal irrevocable
guarantee of Shri B N Padsala and Sandeep B Padsala, Directors of the
Company.
3. Drop Line Overdrafty Working Capital Limit of Rs.35.00 Crores from
State Bank of Indis is secured Hypothecation of Cash Flow of 4 projects
being executed by company is Bhilad, Kathlal, Umargaon-Nisarg Weekend
Home Project and Geratpur, Ahmedabad which is further secured by Charge
over entire Current assets of the Company and personal irrevocable
guarantee of Shri B N Padsala and Sandeep B Padsala, Directors of the
Company. The same is further collateraly secured by Equitable Mortgage
of NA Plot of land admeasuring about 181994 Sq/mtrs.of Plot No. 11-22,
24 to 28, 32,33, 35-50 A1, A2 and D, Survey No. 867 868 to 895 in
Navgujarat Industrial Estate P. Ltd. Opp. Mahemdavad rly. Station,
Moje Mahemdabad, Dist. Kaira.
4. Contingent Liability:
Company has given guarantee to Tata Capital Financial Services Ltd. for
Rs.300.00 lacs and to The Vijay Co.Op. Bank Ltd. for Rs.400.00 lacs for
advances taken by M/s. B Nanji, a partnership firm in which compnay is
partner having 50% share.
5. Company has valued the work-in-progress at Vevji, Umargaon, site at
Direct Cost Plus Borrowing cost, for which no direct nexus for
deployment offund borrwed is established, which is not in conformity
with the requirement of various accounting standards i. e. AS-2, AS-7
AS-16 issued by the Institute of Chartered Accoutnants of India. Had
the company not included the borrowing cost in valuation of stock, the
profit for the year would have been lower by Rs. 42 7.48 lacs.
6. In case of Sales of Flats/Apartments of Akansha Flats, scheme at
Vevji, Umargam, Dist Thane Maharashtra, sales is accounted at the time
of giving possession to the purchasers. However, in view of the
provisions of Maharashtra Ownership of Flats Act, 1963, company has to
form either co. op. Society or a Company and execute sale deed in
favour of society/ company. Company has booked sales in the books of
accounts on giving possession to the buyers of the flats. Company has
not recovered the contribution from the members for the proposed
society as stipulated in the Agreement for Sale.
7. Company has paid an advance payment of Rs. 300.00 lacs against
agreement of Rs.486.00 lacs to Sankira Resorls LLP (Previously known as
Sankira Resorts P. Ltd. ) a firm in which Managing Diretcor and
Executive Directors are partners, on the basis of agreement entered on
13-05-2013 for development of Nisarg - a Weekend Home for which no
prior approval of the members has been taken.
8. Amount received Rs.220.55 lacs in earlier year as Advance for sale of
land against proposed sale of land has been shown as Advance against
Land and the same is not considered as a Deposit within the meaning of
Sec.73 of the Companies Act, 2013 read with Rule 2(12)(d).
9. No Provision for bad boubtful interest free loan of Rs.69.07 lacs
granted to 20 parties given in earlier years has been made in accounts.
10. Company has also granted interest bearing deposit of Rs.45.86 lacs to
2 parties at a normal rate of Interest. Advances for Purchase of Land
in earlier years and amount recoverable in cash or kind or for value to
be received is not considered as loan within the meaning of secton 186
of the Companies Act, 2013.
11. Company is making provision for total liability of gratuity payable
under The Payment of Gratuity Act on th basis of 15 days salary for
completed year of service of eligible employee without considering
directors instead of providing the same on the basis of Acturiral
Valuation which is not in confirmity of the Accounting Standard AS-15
issued by the Institute of Chartered Accountants of India,
12. Expense in respect of other short-term benefits like Leave
Encashment is accounted on Cash Basis which is not in confirmity of
the Accounting Standard AS-15 issued by the Institute of Chartered
Accountants of India,
13. Related Party Disclosure as required by Accounting Standard AS 18
issued the Institute of Chartered Accountants of India is as under:
14. RELATIONSHIP:
Associate Companies/Firms- Enterprises ownwed by /over which Key
Management Personnel are able to exercise significant influences:
B Nanji Construction Pvt. Ltd
International Housing Finance Corporation Ltd
Siddhi Vinayak Buildcon Pvt. Ltd.
B Nanji Finance Ltd Sankira Resorts LLP
Key Management Personnel:
Shri Bhikhubhai Nanjibhai Padsala - Managing Director
Shri Sandip Bhikhubhai Padsala - Executive Director
Shri Siddarth Bhupendrtabhia Vyas - Chief Financial Officer & Whole
Time KMP
Shri Fakhruddin Jadaliwal - Company Secretary
15. Balances of Debtors, Creditors, Members Scheme deposit and advances
are subject to reconciliation/confirmation and consequential
adjustments, if any.
16. Balances of unsecured lenders are subject to
reconciliation/confirmation pending settlement with respective lender.
17. In the opinion of the board, current assets, loans and advances are
approximately of the value stated if realized in the ordinary course of
the business. The provision for all known liabilities is made.
18. The company is operating in single business Real Estate Development
s. Therefore the disclosure requirement as required by accounting
standard (AS) 17 on "Segment Reporting" is not applicable.
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