MREPL BS 2012-13 - Mahima Group FORTHEYEAR2012-13 MIS MAHIMA- REALESTATE PRIVATELIMITED AUDITORS...

AUDIT REPORTFOR THE YEAR 2012-13

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MIS MAHIMA REAL ESTATEPRIVATE LIMITED

AUDITORSKALANI & COMPANYChartered AccountantsS-23A, Shankar Ratan Chamber,Mangal Marg, Bapu Nagar,Tonk Road, Jaipur - 302015

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KALANI&CO.CHARTERED ACCOUNT ANTS

INDEPENDENT AUDITOR'S REPORT

To The Members ofMAHIMA REAL ESTATE PRIVATE LIMITED

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Report on the Financial Statements

We have audited the accompanying financial statements of MAHIMA REAL ESTATEPRIVATE LIMITED ("the company"), whicn compris~ the Balance Sheet as at March 31,2013, the Statement of Profit and Loss and Cash Flow Statement for the year then ended, anda summary of significant Accounting Policies and other explanatory information.

Management Responsibility for the/Financial Statements

Management is responsible for the preparation of these financial statements that give a trueand fair view of financial position, financial performance and cash flow of the company inaccordance with the Accounting Standards referred to in. sub-section (3C) of section 211 ofthe Companies Act 1956 ("the Act") The responsibility includes the design, implementationand maintenance of internal control relevant to the preparation and presentation of financialstatements that give a true and fair view and are free from material misstatements, whetherdue to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit.We conducted our audit in accordance with the Standards on Auditing issued by the Instituteof Chartered Accountants of India. Those standards require that we comply with ethicalrequirements and plarLand perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatements.

An audit involves performing. procedure to obtain audit evidence about the amounts anddisclosure in the financial statements. The procedure selected depends upon auditor'sjudgment, including the assessment of the risk of material misstatements of the financialstatements, whether due to fraud or error. In making those risk assessment, the auditorconsiders ,internal control relevant to the Company's preparation and fair presentation of the

N ncial' statements in order to design audit procedure that are appropriate in the",t'- ~ ('

<~ .?'Shankar Ratan Chambers', S-23A, Mangal Marg, Bapu Nagar, Jaipur-302015

~:2709001-2-3, 2701001-2, Q!l:0141-2703507Website: www.kalanico.com; e-mail: [email protected]

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KALANI&CO.CHARTERED ACCOUNT ANTS

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circumstances. An audit also includes evaluating the appropriateness of accounting policiesused and the reasonableness of accounting estimates made by management, as well asevaluatIng the overall presentation of financial st~tements.

We believe that audit evidence we have obtained is sufficient and appropriate to provide abasis for our audit opinion.

Opinion

In our opinion and to the best of our information and according to the explanations given tous, the financial statements give the information required by the Act in the manner sorequired and give a true and fair view in conformity with the accounting principles generallyaccepted in India: '

,(a) in the case of the Balance Sheet, of the state of affairs of the Company as at March

31,2013;

(b) in the case of Statement of Profit and Loss, of the profit for the year ended on thatdate; and

(c) in the case of the Cash Flow Statements, of the cash flows for the year 'ended on thatdate.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order, 2003 ("the order") issued byCentral Government of India in terms of sub-section (4A) of section 227 of the Act,we give in the Annexure, a statements on the matters speCified in paragraphs 4 and 5of the said order.

2. As required by Section 227(3) of the Act, we ~eport that:a. We have obtained all information and explanations which to the best of our

knowledge and belief were necessary for the purpose of our audit;,",

'In our opinion, proper books of account as required by Law have been' kept by theCompany so far as appears from our examinations of those books;

'Shankar Ratan Chambers', S-23A, Mangal Marg, Bapu Nagar, Jaipur-302015~:2709001-2-3, 2701001-2, Q!!l:0141-2703507

Website: www.kalanico.com; e-mail: [email protected]


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KALANI&CO.CHARTERED ACCOUNTANTS

The Balance Sheet, Statement of Profit and Loss and the Cash Flow Statementsdealt with by this report are in agreement with the books of account;

In our opinion, the Balance Sheet, Statement of Profit and Loss and the Cash FlowStatement comply with the Accounting Standards referred to in sub-section (3C)of Section 2110Lthe Act;

e. On the basis of written representations received from the directors as on March31,2013 and taken on record by the Board of Directors , none of the director isdisqualified as on March 31,2013, from being appointed asa director in terms ofclause (g) of sub-section. (1) of section 274 of the Act.. ,

For KALANI & COMPANY,Chartered Accountants,

FRN- 000722C _~

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[K.L. Jhanwar]Partner

M. No. 014080

'Shankar Ratan Chambers', S-23A, Mangal Marg, Bapu Nagar, Jaipur-302015~:2709001-2-3, 2701001-2, ~: 0141-2703507

'Website: www.kalanico.com; e~mail:[email protected]

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KALANI& co.CHARTERED ACCOUNTANTS

-....ANNEXURE TO THE AUDITOR'S REPORT

Statement referred to in paragraph (1) under "Report on other legal and regulatoryrequirements" paragraph of our report of even date on the Accounts of the Company

for the year ended 31~tMarch, 2013

The company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.The fixed assets have been physically verified by the management during the year in aphased periodical manner, which in our opinion is reasonable having regard to the size ofthe Company and the nature of its assets.The company has not disposed off a substantial part of its fixed assets during the yearhence, the Going concern status of the company is not affected.

The inventory has been physically verified by the management during the year.' In ouropinion, the frequency of such verification is reasonable.The procedures of physical verification of inventories followed by the management arereasonable and adequate in relation to the size of the company and the nature of itsbusiness.The Company is maintaining proper records of inventory. As explained to us thediscrepancies noticed on physical verification of inventory as compared to the bookrecords were not material.

(i)a)

b)

c)

(ii) .a)

b)

c)

(iii)a) The company has granted loans to 16 parties listed inthe register maintained under section

301 of the Companies Act, 1956. The maximum amount involved during the year was ~34,89,61,823 and the year end balance was ~ 33,03,74,455.

b) In our opinion, the rate of interest and other terms and conditions on which loans given bythe company to such persons are prima facie not prejudicial to the interest of the. company. ..---

c) The receipt of principal amount and interest by the company were regular whereverstipulated,

d) . There was no overdue amount.e) The company has taken unsecured loan from 6 parties covered in the register maintained,. under section 301 of the Companies Act, 1956.The maximum amount involved during the"'.

year of such loan was ~ 12,11,04,938 and the year end balance was ~ 5,19,74,484.The rate of interest and others terms and conditions of such loan taken by the companyare prima facie not prejudicial to the interest of the company.

S-23A, Shankar Ratan Chambers, Mangal Marg, Bapu Nagar, Jaipur-3020 15. ~:2709001-2-3,270100l-2~: 0141-2703507

~: [email protected], Website: www.kalanico.com

mailto:[email protected],

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"" (iv)

(v)

g) The Company is regular in repaying the principal amounts as stipulated and has beenregular in the payment of amount and interest thereon.

In our opinion and according to the information and explanations given to us, there areadequate internal control procedures commensurate with the size of the company andnature of its business with regard to purchases of inventory, fixed assets and with regardto the sale of goods and services. During the course of our audit, we have not observedany continuing failure to correct major weaknesses in internal controls.

a) According to the information and explanations given to us, we are of the opinion that theparticulars of all contracts or arrangements that need to be entered into the registermaintained under Section 301 of the Companies Act, 1956 have been so entered.

b) In our opinion and according to the information and explanations given to us, thetransactions made in pursuance of contracts or arrangements entered in the registermaintained under section 301 of the Companies Act, 1956 and exceeding the value ofrupees five lakhs in respect of any party during the year have been made at prices whichare reasonable having regard to prevailing market prices at the relevant time.

(vi) According to the information and explanations given to us, the company has not accepteddeposits from the public and therefore, the provisions of Sections 58A and 58AA of theCompanies Act, 1956 and the rules made there under, are not applicable to the Company.

(vii) The company's Internal Audit is carried by its in house team which is found to becommensurate with the size of the company and nature of its business.

(viii) The Central Government has prescribed the maintenance of cost records by the Companyunder clause (d) of sub-section (1) of section 209 of the Companies Act, 1956 and primafacie the prescribed accounts and records have been maintained by the Company.

(ix)

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a) According to the information and explanations given to us and the records of the companyexamined by us, the company is generally regular in depositing with appropriateauthorities all applicable undisputed statutory dues except some minor delays. Accordingto the information and explanations given to us, no undisputed amounts payable in respectqf aforesaid dues were in arrears as at 31st March,2013, for a period of more than sixmonths from the date they became payable. Pending quantification of actual payableliability, company is holding adhoc provision of ~ 141.93 lacs as on 31.03.2013 againstess payable under Building & Other Construction Workers Welfare Cess Act 1996 (Referote No. 2.9 to Financial Statements).

S=23A, Shankar Ratan Chambers, Mangal Marg, Bapu Nagar, Jaipur-302015~:2709001-2-3,2701001-2~: 0141-2703507

~: [email protected],Website: www.kalanico.com

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b) According to the information and explanations given to us and the records of thecompany examined by us, there are no dues payable of Income Tax, Sales tax, Customsduty, Wealth tax, Excise duty, Cess, Service Tax which have not been deposited onaccount of any dispute except as reported below:

(Amount In ~)Nature of Year Amount Amount Forum where dispute pendingDispute Involved Paid

Sales Taxi Vat F.Y. 2007-08 19,50,747 16,01,956 Deputy Commissioner (Appeal)Income Tax A.Y.2008-09 3,89,097 3,89,097 Commissioner of Income Tax (Appeal)

A.Y.2009-1O 47,49,526 47,49,526 Income Tax Appellate TribunalA.Y.201O-11 10,35,220 NIL Commissioner of Income Tax (Appeal)

Service Tax Oct. 2008 to 22,50,923 20,00,000 Central Excise & Service TaxSept. 2009 Appellate TribunalApr 08 to Sept. 38,94,167 38,94,167 Central Excise & Service Tax2010 Appellate Tribunal

(x) The Company has neither accumulated losses as at March 31, 2013 nor has incurred anycash losses during the year.

(xi) In our opinion and according to the information and explanations given to us, thecompany has not defaulted in repayment of dues to financial institutions or banks.

(xii) According to the information and explanations given to us, the company has not grantedany loans and advances on the basis of security by way of pledge of shares, debenturesand other securities.

(xiii) The company is not a chit fund or a nidhi/mutual benefit or a society. Therefore, theprovisions of clause 4 (xiii) (a) to 4(xiii) (d) of the Companies (Auditor's Report) Order,2003 are not applicable to the company.

(xiv) The company is not dealing in or trading in the shares, securities, debentures and otherinvestments. Accordingly, the provisions of clause 4(xiv) of the Companies (Auditor'sReport) Order, 2003 are not applicable to the company.

(xv) According to the information and explanations given to us, there were no outstandingguarantees given by the Company for loans taken by others from banks or financialinstitutions.

I. __

Quring the year, the Company has raised various term loans and the same were utilizedfor the purpose for which the loans were obtained.

S-23A, Shankar Ratan Chambers, Mangal Marg, Bapu Nagar, Jaipur-3020 15.• ~:2709001-2-3,2701001-2 ~: 0141-2703507




(xvii)--"• ol\ (xviii)

(xix)

(xx)

(xxi)

KALANI&. CO.CHARTERED ACCOUNTANTS

According to the records examined by us and information and explanations given to us~and on overall examination of Balance Sheet, we report that no funds raised on short-

- term basis have been used for long-term investments .

~he c0n:tpany has not made any allotment of shares during the current year.

The cO,mpanyhas not issued debentures during the year.

The company has not raised money by way of public issue during the year.

To the best of our knowledge and belief according to the information and explanationsgiven to us, no fraud on or by the company has been noticed or reported during the year.

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For KALANI & COMPANY,Chartered Accountants

FRN-000722Cn

~~~~.

[K. L. Jhanwar]Partner

M .No. 014080

S-23A, Shankar Ratan Chambers, Mangal Marg, Bapu Nagar, Jaipur-3020 15~:2709001-2-3,2701001-2 ~: 0141-2703507




MAHIMA REAL ESTATE PRIVATE LIMITEDJAIPUR

Balance Sheet as on 31st March 2013 (Amount in~

Particulars Note No.Ason As on

31st March 2013 31st March 2012I. EQUITY AND LIABILITIES

(I) Shareholder's funds(a) Share capital 2.1 8,67,52,430 8,67,52,430(b) Reserves and Surplus 2.2 90,03,39,055 72,66,46,760

(2) Non-current liabilities(a) Long-tenn borrowings 2.3 63,28,42,474 24,85,01,229(b) Deferred tax liabilities (net) 2.4 27,27,375 3,37,395(c) Other Long tenn liabilities 2.5 11,15,72,037 8,47,32,123(d) Long-tenn provisions (Gratuity) 36,37,312 -

(3) Current liabilities ,

(a) Short-tenn borrowings 2.6 8,88,03,258 . 4,41,70,060

(b) Trade payables 2.7 12,93,72,196 2, I2,00,886

(c) Other current liabilities 2.8 59,23,64,277 1,14,36,72,161

(d) Short-tenn provisions 2.9 1,4 1,93,000 1,95, I9,362

Total 2,56,26,03,414 2,37,55,32,406

II ASSETS

(I) Non-current assets(a) Fixed assets 2.10

(i) Tangible Assets 10,40,42,303 8,74,6 1,08 I

(ii) Intangible Assets 31,95,460 75,921

(iii) Intangible assets under development - 13,38,750

(b) Non-current investments 2.1 I 58,70;72,257 3 I ,00,93,009

(c) Deferred tax assets (net) 2.4 - -(d) Long-tenn loans and advances 2.12 21,45;04,696 18,72,36,66 I

(e) Other non-current assets - -(2) Current assets

(a) Inventories 2.13 90,75,17,672 1,25,27,75,101. (b) Trade Receivables 2.14 2,33,83,391 8,74,03,524

(c) Cash and Cash Equivalents 2.15 12,93,70,259 8,87,16,264

(d) Short-tenn Loans and Advances 2.16 57,81,01,238 35,15,74,284

(e ) Other Current Assets 2.17 1,54,16,138 88,57,81 I

Total 2,56,26,03,414 2,37,55,32,406

SIGNIFICANT ACCOUNTING POLICIES & NOTES ARE. AN1&2

INTEGRAL PART OF THESE FINANCIAL STATEMENTS

For and on behalf ofMahima eal te Private Limited

h~~m..,f.- I"(Kusum Madan) (S. K. PC'Director~hief Financial Officer

Place: JaipurDate: 19.08.2013

In tenns of our Audit Report of even dateFor Kalani & CompanyChartered Accountants

F~

KL JhanwarPartner

M. No. 14080

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.MAHIMA REAL ESTATE PRIVATE LIMITEDJAIPUR

Statement of Profit and Loss for the vearel1ded 31st March 2013 (Amount in ~

Particulars Note No. For the Year ended For the Year ended31st March 2013 31st March 2012

IncomeI Revenue from operations 2.18 1,26,43,54,746 1,66,78,26,458II Other income 2.19 6,30,46,102 4,26,37,180III Total Revenue (1+11) 1,32,74,00,847 1,71,04,63,638

Expenditurea. Expenditure incurred on Construction! Development 2.20 62,01,98,995 70,85,25,458b. Purchases of stock-in-trade 2.21 - 40,37,100c. Changes in inventories of Land, finished stock andwork in progress 2.22 30,22,78,891. 46,48;96,404d. Employee benefits expense 2:23 3,62,99,260 3,24,65,627e. Finance costs 2.24 4;90,88,540 4,09,47,693f. Depreciation and Amortization expense

- On Fixed Assets 2.10 1,17,74,275 1,02,15,867'. On Investment Properties 2.11 71,28,247 -

g. Other expenses 2.25 9~84,30,064 6,59,25,026h. Prior period adjustments 2.26 67,31,370.' 14,10,831IV Total expenses (a+b+c+d+e+f+g+h) 1,13,19,29,642 1,32,84,24,006V Profit Before tax (III-IV) 19,54,71,206 38,20,39,~32VI Tax Expenses:

(1) Current tax (Net off Mat Credit) 1,90,00,000 2,58,95,503(2) Earlier Year Tax 3,88,931 -(3) Deferred Tax 2.4 23,89,980 (1;47,159)

VII Profitl(Loss) for the year (V-VI) 17,36,92,295 35,62,91,288

VIII Earnings per shareEquity share of par value of~1O each'Basic & Diluted 2.27 20.02 45.53-

SIGNIFICANT ACCOUNTING POLICIES & NOTES ARE AN -1&2 --,INTEGRAL PART OF THESE FINANCIAL STATEMENTS

For and 0 eha ofeal Es ate Private Limited

. ~ ~~~~-\.~(Dhir ra Madan) (Kusum Madan).. (S. K~~Y)Managing Director Director. Chief Financial Officer,,

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Place: JaipurDate: 19.08.2013 '

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Company Secretary

In te~s of our Audit ItJport of even dateFor Kalani & CompanyChartered Accountant

FRN.:O~O~.,~ .'._~~'.'."

K.L. JhanwarPartner

M. No: 14080


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-- ••••••• &~ •••••••••••••••••.• "' •••••••.•.•••••••••.• ""'I' .•.••.0,:" .• .a:...n."",.V".-.", I Amountin~PARTICULARS For the Year ended 31.03.2013 For the Ended 31.03.2012

DETAILS AMOUNT DETAILS AMOUNTA) CASH FLOW FROM OPERATING ACTIVITIESNet Profit hefore tax as Per Profit & Loss Ale 19,54,71,206 38,20,39,632Adjusted for :-

Provision for Gratuity 36,37,312 -Finance Cost 4,90,88,540 4,09,47,693Interest Received -5,08,05,822 -3,84,26,353Labour Cess 54,10,000 66,84,000Depreciation & Amortization Exp. 2,56,33,892 1,02,15,867

Profit on sale ofInvestmentlFixed Assets -9888970 -li65 006Operating Profit hefore Working Capital Changes 21,85,46,158 40,00,95,832Adjusted for:-

Increase! (Decrease) in Non Current/Current Liabilities -44,02,98,357 -83,19,69,065(Increase) I Decrease in Other Current Assets -3,19,38,395 1,99,62,015(Increase) I Decrease in Inventol)' 34,52,57,429 46,48,%,404(Increase) I Decrease in Trade Receivables 64020133 -67649341

Cash Generated From Operations 15,55,86,968 -1,46,64,155Taxes Paid -50245293 -67300577

Net Cash Flow From Operating Activities 10,53,41,675 -8,19,64,732

B) CASH FLOW FROM INVESTING ACTIVITIESPurchase of Fixed Assets -3,01,36,286 -67,23,019Sale of Fixed Assets 1,59,08,819Sale ofInvestments 1,66,31,337 13,65,006Short Terrnl Long Term Loans and Advances -25,37,94,989 -14,17,12,415Interest Received 5,08,05,822 3,84,26,353Purchase of Investments -29,75,81,232 -7,45,55,135Net Cash Flow From Investing Activities -51,40,75,348 -16,72,90,391'

C) CASH FLOW FROM FINANCING ACTIVITIESBorrowing Raised (Long terrnlshort term) , 73,10,86,098 25,99,88,668Borrowing Repaid (Long terrnlshort term) -27,81,09,959 -12,80,72,289Proceeds from Issue of Share Capital

1" ,17,00,00,000

Finance Cost -490 88 540 -409 47 693Net Cash Flow Ftom Financing Activities 40,38,87,600 26,09,68,687

Net Increasel(Decrease) in Cash and Cash Equivalent -48,46,074 1,17,13,564

Opening balance of Cash and Cash Equivalent 2,49,97,440 1,32,83,876

Closin. balance or Cash and Cash Eouivalent 2,01,51,366 I 2,49,97,440

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For and on behalf of

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. . \GU)) "'-M..Y'Y\ ~C\'k.. .V....(DMu.d" "'d •• ) (Ku"m M.d•• ) (S.l<.b!{. h,k>. '<lhnManaging Director Director Chief Financial Officer Company Secretary

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Jaipur9.08.2013

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In terms of our Audit Report of even dateFor Kalani & CompanyChartered Acc;;~;ann

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K. L. .JlutfIwarPilrtner

M. No. 14080


SIGNIFICIANT ACCOUNTING POLICIES & NOTES ON FINANCIAL STATEMENTSFOR THE PERIOD ENDED 31st MARCH, 2013

1. Significant Accounting policies

...-1.1 Basis of Preparation of Financial Statements

The financial statements have been prepared to comply in all material respects with the notifiedaccounting standards by Companies Accounting Standards Rules, 2006 and the relevant provisionsof the Companies Act, 1956 ("the Act"). The financial statements have been prepared under thehistorical cost convention on an accrual basis in accordance with accounting principles generallyaccepted in India. The accounting policies have been consistently applied.

1.2 Use of Estimates ,The preparation of financial statements in conformity with generally accepted accounting principlesrequires management to make estimates and assumptions that affect the reported amounts of assetsand liabilities and disclosure of contingent liabilities at the date of the financial statements and theresult of operations during the reporting period. Although these estimates are based uponmanagement's best knowledge of current events and actions, actual results s:;oulddiffer from theseestimates. Significant estimate used by the management in the preparation of these financialstatements include computation of percentage completion for projects in progress, project cost,revenue and saleable area, estimates of the economic useful lives of fixed assets, provisions for badand doubtful debts. Any revision to accounting estimates is recognized prospectively.

1.3 InventoriesInventories which comprise land, land development cost, construction material and consumables,construction work-in-progress, completed project etc. are valued at lower of cost and net realisablevalue. Cost comprises of costs that are directly related to specific project or costs that can beattributable to the project activity in general. Such costs includes cost of land, cost of constructionmaterial & services, borrowingco-sLand directly attributable overheads including employee costincurred till project completion stage. Howeyer, where total project cost is estimtaed to exceed totalrevenue from the project, such loss is recognised immediately in the statement of profit & lossfollowing the principle of prudence. -

1.4 Fixed Assets & Depreciation(a) Fixed Assets (Gross Block) are stated at cost of acquisition or .construction, less accumulated

depreciation and impairment, if any. Cost comprises the purchase price and any attributable cost(including borrowing cost) of bringing the asset to its working condition for its intended use and isdepreciated at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956on written down value method. These rates in the opinion of the management reflect the economicuseful life of the assets.

;


1.5 Revenue Recognition & Related Cost

(a) Project for which revenue is recognised for the first time on or after April 1,2012With effect from April 1, 2012 in accordance with the Revised Guidance Note issued by theInstitute of Chartered Accountants of India ("ICAl") on "Accounting for Real Estate Transactions(Revised 2012)", the Company revised its Accounting Policy of revenue recognition for all projectscommencing on or after April 1,2012 or project where the revenue is recognized for the first timeon or after the that date. As per the Guidance Note, the revenue have been recognized on percentageof completion method provided all of the following conditions are met at the reporting date:

(i) atieast 25% of estimated construction and development costs (excluding land cost) has beenincurred;(ii) atleast 25% of the saleable project area is secured by the Agreements to sell/ application forms(containing salient terms of the agreement to sell); and(iii) atleast 10% of the total revenue as per agreement to sell are realized in respect of theseagreements.

(b) Project for which revenue recognition had commenced prior to April 1,2012The Company follows Project Completion Method of Accounting. Revenue is accounted for as andwhen the projects get completed or substantially completed. The revenue is recognized to the extentit is probable that economic benefits will flow to the Company and the revenue can be reliablymeasured.

Basis of Quantification of Revenue & Related Cost:(a) Sale consideration receivable/received is recognized as revenue on the basis of percentage of actual

project cost incurred (including land) to the total estimated development and construction cost ofsuch project, Le., cost already incurred and yet to be incurred.

(b) The estimates of the saleable area and cost are reviewed periodically by the management and anyeffect of changes in estimates is recognized in the period where such changes are determined.

(c) Cost of construction/development is charged to the Statement of Profit and Loss proportionate to therevenue recognized as above, in consonance with the concept of matching cost and revenue.

(d) Booking money received in advance is considered as current liability till the recognition of revenue.

(e) Amount payable to development or improvement authorities in respect of development works to becarried by them are recovered from buyers on estimated cost basis. Difference, if any on completionof project would be recognized as an expenses or income in the year of such completion.

(t) Brokerage & Commission is accounted for as an expense in the year of incurrence.

1.6 Foreign Currency Transactions(a) Transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the

date of the transaction or that approximates the actual rate at the date of the transaction.(b) Monetary items denominated in foreign currencies at the year end are restated at year end rates.

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1.7 Investments/ Investment PropertiesInvestments that are intended to be held for more than a year, from the date of acquisition, areclassified as long term investments and are carried at cost. However, provision for diminution invalue of investments is made to recognize a decline, other than temporary, in the value ofinvestments. Investments other than long term investments being current investments are valued atcost or fair value whichever is lower, determined on an individual basis. Investment Properties arevalued at acquisition cost, depreciation is provided on properties held for rentals (excluding value ofland) @ 5% (as per schedule XIV) in accordance with requirement of AS-6 on "DepreciationAccounting" .

1.8 Employees Benefits(a) Short term employee benefits are recognized as an expense at the undiscounted amount in the

statement of profit and loss of the year in which the related service is rendered. Employee benefitssuch as PF, family pension, ESI etc. are treated as defined contribution plan and such contributionsare charged to Statement of Profit & Loss when contributions to the respective funds are due.

(b) Post employment and other long term employee benefits are recognized as an expense in theStatement of Profit & Loss of the year in which the employee has rendered services and treated asdefined benefit plans. The expenses are recognized on the assumption that such benefit are payableat the end of the year to the eligible employees.

1.9 Borrowing CostBorrowing costs that are attributable to the acquisition or construction of qualifying assets arecapitalised as part of the cost of such assets. A qualifying asset is one that necessarily takessubstantial period of time to get ready for its intended use. All other borrowing costs are charged toStatement of Profit and Loss.

1.10 Segment ReportingThe Company's reporting segments are identified based on activities, risk and rewards structure,organisation structure and internal reporting systems. Segment revenue and expense includeamounts which can be directly attributable to the segment and allocable on reasonable basis.Segment assets and liabilities are assets/liabilities which are directly attributable to the segment orcan be allocated on a reasonable basis. Income/Expenses/ Assets/Liabilities relating to the companyas a whole and not allocable on reasonable basis to business segments are reflacted as unallocatedIncome/Expenses/ Assets/Liabilities.

1.11 Lease accountingIn respect of operating lease, lease rentals are accounted on accrual basis in accordance with therespective lease agreements where recovery of certainty exists. Recurring costs are recognized as anexpense in the statement of profit and loss. Initial direct costs such as legal costs, brokerage costs,etc. are recognized in the statement of profit and loss.

1.12 Accounting for Taxes on IncomeCurrent Year's tax is determined as the amount of tax payable in respect of taxable income for thecurrent year in accordance with provisions of Income Tax Act, 1961 net of MAT credit entitlementin view of guidance note issued by ICAI. Deferred tax resulting from "timing difference" betweentaxable and accounting income is accounted for using the tax rates and laws that are enacted orsubstantively enacted as on the balance sheet date. Deferred tax asset is recognised and carriedforward onl to the1extent that there is a virtual certainty that the asset will be realised in future.

",NI ~'!(-'V 00~ .

I.

"~.eo,

•.~

.. 1.13


Impairment of AssetsThe Carrying amounts of assets are reviewed at each Balance Sheet date if there is any indication ofimpairment based on internal/external factors, the same is provided for. An asset is impaired whenthe carrying amount of the asset exceeds the recoverable amount. An impairment loss is charged tothe Statement of Profit and Loss in the year in which an asset is identified as impaired. Animpairment loss recognized. in prior accounting periods is reversed if there has been change in theestimate of the recoverable amount.

.,-;,.

Provisions, Contingent Liabilities and Contingent AssetsProvisions are recognized for liabilities that can be measured only by using a substantial degree ofestimation, if:the Company has a present obligation as a result of a past event.

a probable outflow of resources is expected to settle the obligation and

the amount of the obligation can be reliably estimated.

Reimbursement expected in respect of expenditure required to settle a provision is recognized onlywhen it is virtually certain that the reimbursement will be received.

Contingent Liability is disclosed in the case of:

(a) a present obligation arising from a past event, when it is not probable that an outflow of resourceswill be required to settle the obligation.

(b) a possible obligation, unless the probability of outflow of resources is remote.

Contingent Ass~ts are neither recognized nor disclosed.

\l'-:NI ~v 00.'<~ .

''-t;

1.14

\p

(a)

(b)

(c)

(d)

,"MAHIMA REAL ESTATE PRIVATE LIMITED

JAIPUR

NOTES ON FINANCIAL STATEMENTSFOR THE PERIOD ENDED 31ST MARCH 2013

SHAREHOLDERS FUNDS

'~N t 2 I Sh C 't I

* Figures in bracket are of previos year

o e: are apiaAmount 10

Particulars As on 31st As on 31stMarch 2013 March 2012Authorised Share Capital

94,20,000 (94,20,000) Equity Shares of~ 10- each9,42,00,000 9,42,00,0001,35,000 (1,35,000) Redeemable Preference Shares of~ 100/- each 1,35,00,000 1,35,00,000

10,77,00,000 10,77,00,000

Issued, Subscribed and Paid up Capital86,75,243 (86,75,243) Equity Shares of~ 10/- each fully paid 8,67,52,430 8,67,52,430

Total 8,67,52,430 8,67,52,430

Reconciliation of the number of shares outstanding:

Particulars For the Year Ended For the Year Ended31st March 2013 31st March 2012

Number of shares at the beginning of the year 86,75,243 78,25,243Add :Share issued during the year - 8,50,000Less :Share bought back during the year - 8,50,000Number of shares at the end of the year 86,75,243 86,75,243

(Out of above, 8,85,443 Equity Shares of ~ 10/- each were issued to the shareholders of transferee companies on mergerfor consideration other than cash on 3rd Sep. 2008.

h 5% hD 'I f h h Id hid'etal s 0 s are 0 ers 0 109 more t an oS ares:As on 31st March 2013 As on 3Ist March 2012

Name of shareholder No. of Shares% holding No. of Shares

% holdingheld heldSh. Dhirendra Madan. 36,88,432 42.52% 36,88,432 42.52%Slot. Kusum Madan 5,54,049 6.39% 5,54,049 6.39%Aristro Projects Pvt. Ltd. 23,66,471 27.28% 23,66,471 27.28%Everyday Commercial Pvt. Ltd 5,93,530 6.84% 5,93,530 6.84%Domier Credit Capital Limited. 5,52,942 6.37% 5,52,942 6.37%

Note: 2.2 Reserves & Sur Ius

Particulars

(A) Capital Reserveo enin BalanceClosin Balance(B) Capital Redemption ReserveOpening BalanceAdd: Current year transferLess: Written back in Current earClosin Balance(C) Securities Premium ReserveOpening BalanceAdd: Current year transferLess: Written back in Current earClosin Balance(D) SurplusOpening BalanceAdd: Net Profit after tax transferred from Statement of Profit & LossAmount available for a ro riationsClosin Balance

NI Total A+B+C+D)

(Amount in ~As on 3Ist As on 3Ist

March 2013 March 2012

5,74,04,631 5,74,04,6315,74,04,631 5,74,04,631

1,34,70,000 1,34,70,000

1,34,70,000 1,34,70,000

16,15,00,00016,15,00,000

16,15,00,000 16,15,00,000

49,42,72,129 13,79,80,84117,36,92,295 35,62,91,28866,79,64,424 49,42,72,12966,79,64,424 49,42,72,12990,03,39,055 72,66,46,760


NON-CURRENT LIABILITIES

Note: 2.3 Long-Term Borrowings* (Amount in ~

ParticularsAs on As on

31st March 2013 31st March 2012(A) Secured:Term Loans:(i) From Banks

•. ICICI Bank Ltd. 1 5,972,753 6,109,442

Kotak Mahindra Bank Ltd.- 0026 2 75,579,743 85,062,685




SBBJ, Tilak Marg, Jaipur 6 165,180,830 50,619,858

HDFC Bank Ltd.7 222,462 1,069,255

HDFC Bank Ltd.8 339,432 2,282,906

Axis Bank Ltd.9 5,538,526 -Axis Bank Ltd. 10 938,336 -Kotak Mahindra Bank Ltd. II 42,836,602 9,386,666

Total 313,740,517 224,251,346

Less: Current Maturities (Carried to Note: 2.8) -74,117,985 -74,032,385Total (i) 239,622,532 150,218,961

(ii) From othersSREI Equipment Finance Pvt. Ltd. 12 67,285,596 97,454,042

Kotak Mahindra Prime Ltd. 13 952,473 1,521,758

Kotak Mahindra Prime Ltd. 14 396,031 601,009

PNB Housing Finance Ltd.15 35,231,635 -PNB Housing Finance Ltd. 16 138,393,328 -

PNB Housing Finance Ltd.17 68,374,475 -Total 310,633,538 99,576,809

Less: Current Maturities (Carried to Note: 2.8) -54,980,410 -31,064,313

Total (ii) 255,653,128 68,512,496

Total (A) (i+ii) 495,275,660 218,731,457

(B) Unsecured:From Body Corporate 110,017,672 10,496,706

From Directors 5,675,973 379,533

From Director's Relatives 21,873,169 18,893,533

Total (B) 137,566,814 29,769,772

Total (A+B) 632,842,474 248,501,229

Description Notes:* "Long term borrowings" payable within 12 months from the reporting date, as per offer term, are reduced from long termborrowings & disclosed seperately under other current liabilities. Current maturity of long term borrowing is worked outconsidering the due redemption date as per the original documents/agreements

* Out of the above, L,oans aggregating to ~ 3,360 Lacs (P.Y. ~ 2,148 Lacs), are guarenteed by both the directors.


T fRerms 0 epavment:

S.No. Security and Guarantee details Repayment terms Rate of Interest oson 31-03-2013I Secured against Residential Flat Near South Nirvana Repayable within 188 EMI of ~ 0.74 lacs 13.25%

Country,Gurgaon, Haryana. commencing from June, 2009.2 Loan along with aD facility limit of~ 10 crores is secured against Repayable within 96 EMI of ~ 17.34 lacs 13.50%- Inox theatre and other comercial space of 32898 sqfts. in Crystal commencing from June, 2010.

Palm and 9741 sqfts. in Crystal Court and personal guarantee ofboth the Directors of the company.

-J Secured by way of equitable mortgage on following properties: 3. Repayable within 24 EMI of ~ 38.48 lacs 15.50%4 office no. 304,305,308,309,401,402,403 & 404 located at A-3, commencing from July, 201 I.& Crystal Mall, Bani Park, Jaipur measuring 8836.53sq. ft and 12 4. Repayable within 21 EMI of ~ 6.53 lacs5 flats located at Swej Farm, New Sanganer Road, Jaipur measuring commencing from Nov, 201 I.

35634.4 sq ft., commercial property at plot no. 5 trinity, saje farm 5. Repayable within 22 EMI of ~ 5.01 lacsJaipur and personal guarantee of both the Directors of the commencing from Jan, 2012.company.

6 Secured by way of equitable mortgage of Nirvana project situated Repayable within 20 EMI of ~ 100 lacs 14.25%at Land Khasra number 881, 882, 930, 931, 1886/880, 1888/932, commencing from Apr, 2014.896, 929 &1887/928 measuring 21195.59 sq. mt., VillageMahapura, Ajmer Road, Jaipur and hypothecation of other fixedassets, entire current assets of the company including stock ofbuilding materials book-debts/receivables from buyer etc ..of thisproject and personal guarantee of both the Directors of thecompany.

7 Secured against hypothecation of car (AUDI). Repayable within 36 EMI of ~ 0.75 lacs 8.00%commencing from July, 2010.

8 Secured against hypothecation of car (BMW). Repayable within 36 EMI of ~ 1.71 lacs 7.60%commencing from July, 2010.

9 Secured against hypothecation of car (BMW). Repayable within 36 EMI of ~ 2.08 lacs 9.33%commencing from Oct, 2012.

10 Secured against hypothecation of car (Innova). Repayable within 36 EMI of ~ 0.35 lacs 9.82%commencing from Oct, 2012.

II aD Facility along with term loan of ~ 10 crores is secured against Repayable within 96 months. 13.50%Inox theatre and other comercial space of 32898 sqfts. in CrystalPalm and 9741 sqfts. in Crystal Court and personal guarantee ofboth the Directors of the company.

12 Mortgage of 52 flats in Panorama Project situated near SRN Repayable within 33 monthly installments of ~ 15.53%International School, Jagatpura, Jaipur 38.40 lacs starting from March, 2012.

13 Secured against hypothecation of car (FORTUNER). Repayable within 36 EMI' of ~ 0.60 lacs 10.65%commencing from Sep, 2011.

14 Secured against hypothecation of car (SWIFT-Zl). Repayable within 36 EMI of ~ 0.22 lacs 11.07%commencing from Dec, 201 I.

15 Secured by way of equitable mortgage of city ville project land & Repayable within 24 EMI of ~ 33.33 lacs 14.75%strucuture constructed, to be constructed thereon measuring 17700 commencing after moratorium of 6 month from thesq. mtrs., assignment of Receivables of the Project of Rs. 34.90 date of first disbursement of loan i.e. From JulyCrore apprx. and personal guarantee of both the directors. 2013.

16 Registered mortgage over lower ground floor & ground floor at 16. Repayable within 96 monthly installments of ~ 14.00%& Plot no. 5, swaje farm, New Sanganer Road, Sodala-Jaipur 23.32 lacs starting from Feb-13.17 admeasuring 3922 sq. Mtr., registered mortgage over 40 identified 17. Repayable within 96 monthly installments of ~

unsold flats in one of the project named Panorma located at 12.16 lacs starting from Dec-12.Jagatpura, Jaipur. ,


( Amount in ~)

Note: 2.4 Deferred Tax Assets! (Liability)Disclosure in accordance with AS-22 "Accounting for Taxes on Income"Major Compnonets of Deferred Tax Balance:

Particulars As on 31st March 2013 As on 31st March 2012I) Deferred Tax LiabilityDifference between accounting & tax depreciation (cumulative) 5,802,556 337,395II) Deferred Tax AssetDisallowance under IT Act,1961 3,075,181 -€Iosing Deferred Tax Assets! (Liability) (2,727,375) (337,395)Less: Opening Deferred Tax Assets! (Liability) (337,395) (484,554)Net Difference credited to Statement of Profit and Loss (2,389,980) 147,159

(Amount in ~Note: 2.5 Other Long term liabilities

Particulars As on 31st March 2013 As on 31st March 2012Security Deposits and advances (against rent, maintenance & others) 111,572,037 84,732,123

Total 111,572,037 84,732,123

CURRENT LIABILITIES

B2 SNote: .6 hort Term orrowID2S (Amount in )

Particulars As on 31st March 2013 As on 31st March 2012

SecuredLoans Repayable on DemandFrom Banks-Overdraft from SBBJ (Secured against FDR) 68,803,258 -

UnsecuredLoans Repayable on DemandFrom Banks - -From others (Body Corporates) 20,000,000 44,170,060

Total 88,803,258 44,170,060

( Amount in ~)Note: 2.7 Trdae Payables


(A) For Goods:-Land:(a) Dues of Micro & Small Enterprises* - -(b) Others - 7,480,000

-Construction Material:(a) Dues of Micro & Small Enterprises* - -(b) Others 51,808,032 10,307,397

(B) For Services(a) Dues of Micro & Small Enterprises* - -(b) Dues of Related Parties 19,600,008 32,536

(c) Others 57,964,156 3,380,953

Total 129,372,196 21,200,886

*Company is in the process of collecting information relating to Micro & Small Enterprises to whom the company owes dues onaccount 0 .. i al arrlount together with interest at the Balance sheet date. .

vI'- I~('~"?: ?


Note: 2.8 Other Current Liabilities (Amount in ~

Particulars As on 31st March 2013 As on 31st March 2012Current Maturities of Long Term Borrowings(Carried from Note: 2.3» 129,098,395 105,096,698Advance against booking from customers 407,025,049 828,025,017~nterestaccrued but not due on borrowings 1,754,493 2,530,109Others (See Description Note No. (i)) 54,486,339 208,020,337

Total 592,364,277 1,143,672,161

(Amount in ~(i) List of others:

Particulars As on 31st March 2013 As on 31st March 2012Statutory Liabilities 10,227,950 10,724,570Dues for Expenses 29,175,469 177,566,850Other Liabilities 15,049,072 11,171,720Liabilities against cheques issued but not presented 33,849 8,557,198

Total 54,486,339 208,020,337

Note: 2.9 Short Term Provisions ( Amount in ~)

Particulars As on 31st March 2013 As on 31st March 2012Income Tax 39,120,000 77,466,978Less: Advance Tax and TDS (as per contra) 39,120,000 66,730,616

Total - 10,736,362Labour Cess 14,193,000 8,783,000

Total 14,193,000 19,519,362

1. Pending quantification of actual payable liability, the company holds an adhoc provision of~ 1,41,93,000 as on 31.03.2013 (~87,83,000 as on 31.03.2012) against cess payable under the provisions of Building & Other Construction Workers Welfare CessAct, 1996. The company is in process of quantification of the liability payable in respect of various ongoing projects.

2. Provision for taxation is made considering benefits under section 80-IB(lO) of Income Tax Act, 1961 in respect of certainprojects.

(Amount in ~* Movement of Provisions in Compliance of AS-29Particulars Gratuity* Labour Cess Income Tax

Opening Balance as on 01.04.2012 - 8,783,000 77,466,978Add: Provision made during the year 3,637,312 5,410,000 39,120,000Total 3,637,312 14,193,000 116,586,978Less: Utilised during the year - - 77,466,978Closing Balance as on 31.03.2013 3,637,312 14,193,000 39,120,000

Non Current Assets2.10. FIXED ASSETS:(At cost less depreciation)

MAmMA REAL ESTATE PRIVATE LIMITEDJAIPUR

I) of:ill "; U

v) .) .,:;

I••••••••.•••••••.•••'J

Rate of I Gross Block Depreciation Block 1 Net Block

S.No. Particulars Dep. As on Additions Deductions As on 31.03.2013Upto

For the year On Deductions Upto 31.03.2013As on

(In %) 01.04.2012 31.03.2012As on 31.03.2013

31.03.2012

IfA) TANGIBLE ASSETS1 Building 5.00 82,997,214 . 82,997,214 20,951,099 3,102,306 - 24,053,405 58,943,809 62,046,115

2 Plant & Machinery 13.91 1,444,450 12,694,022 - 14,138,472 1,029,191 636,643 . 1,665,834 12,472,638 415,259

3 Furniture & Fixtures 18.10 6,149,119 233,640 . 6,382,759 3,176,748 702,354 . 3,879,102 2,503,657 2,972,371

4 Vehicles 25.89 27,075,608 9,278,787 - 36,354,395 12,770,426 4,944,649 . 17,715,075 18,639,320 14,305,182

5 Computer & Software 40.00 4,135,912 1,271,886 . 5,407,798 2,854,894 733,458 . 3,588,352 1,819,446 1,281,018

6 Office & Other Equipments 13.91 12,220,865 4,384,143 . 16,605,008 5,779,942 1,161,633 . 6,941,575 9,663,433 6,440,923

7 Books 100.00 13,500 - 13,500 13,287 213 - 13,500 - 213

Total fA) 134,036,668 27,862,478 - 161,899,146 46,575,587 11,281,256 . 57,856,843 104,042,303 87,461,081

B) INTANGIBLE ASSETS1 ISoftware" 1 I 194,974 3,612558 - 1 3,807532 I 119,053 I 493,019 I - 1 612,072 3,195,460 1 75,921

TotallB) T 1 194,974 I 3,612,5581 - I 3,807,532 I 119,0531 493,019 I • 1 612,072 3,195,4601 75,921

Total (A+B) 1 I 134,231,642 1 31,475,036 I • 1 165,706,678 I 46,694,640 I 11,774,275 1 - 1 58,468,915 107,237,763 1 87,537,002

PREVIOUS YEAR T I 146,834,767 I 5,384,2691 17,987,394 I 134,231,642 I 38,557,348 1 10,215,867 I 2,078,5751 46,694,640 87,537,002 1 108,277,419

1,338,7501,338,750

1,338,750 1,338,750

!l

* Hitherto compnay is charging depreciation on Intangible Assets being Software @ 40% on WDV Method. From the current year onwards company has decided to amortize the cost of suchsoftware on strailfht line method over a period of three years. This change has resulted in understatement of depreciation by ~ 79,728 ..~ ..

*:~.''WPURCVJ

....i


Note: 2.11 Non Current Investments (Long term Investments) ( Amount in ~)

, , I,

Extent of HoldingParticulars as on 31st March As on 31st March 2013 As on 31st March 2012

2013(A) Investment Properties:Land 11,27,67,180 11,04,07,620Commercial Space in Malls- Land 6,28,31,595 3,35,43,597- Construction Value 15,50,28,493 13,91,41,592

Total (A) 33,06,27,268 28,30,92,809(B) Investments in Equity Instrument:Unguoted - Trade InvestmentsIn Subsidiary-Hare Krishna Buildhome Developers Pvt. Ltd1,34,480 fully paid equity shares of~ 10/- each 99.99% 20,17,200 -Pinkcity Heritage Resorts Pvt Ltd24,06,660 fully paid equity shares of~ 10/- each(P.Y. 11,00,010 of~ 10 each) 99.99% 4,68,08,600 2,20,00,200

Total (B) 4,88,25,800 2,20,00,200(C) Investment in Partnership firm:** -MM Realty 53.00% 17,85,20,062 50,00,000

Platinum Relators 99.00% 2,90,99,127 -Total (C) 20,76,19,189 50,00,000

Total (A+B+C) 58,70,72,257 31,00,93,009

* Details of Commercial Space in Malls are as follows:

~

Particulars

Value of Land

Opening Value

3,35,43,597

Addition

3,05,93,595

Deletion

13,05,597

Closing value

6,28,31,595

\'


h,"» .f .' ,lJ l'>'

Particulars

Construction ValueNote: Refer Accounting Policy No. 1.7

Opening Value

13,91,41,592

Addition

3,42,60,703

Deletion

45,14,185

Total

16,88,88,110For the Year

71,28,247

DepreciationPrior Period

67,31,370Total1,38,59,617

~•• The particulars of partners with their sharing ratio, total capital and shares of each partner are given below:J.} l"J.1'JJ. 1.''--''11''.

Share of CaDital

Name of PartnersProfit Sharing

Ratio As on 31st March 2013 As on 31st March 2012

Ascent Buildhome Developers Ltd 25% 5,18,47,574 5,50,00,000Mr. Murshid Ahmed 7% (6,596) -Mabima Real Estate Pvt. Ltd. 53% 17,85,20,062 50,00,000Mr. Dhirendra Madan 15% (\4,133) -

Total 100% 23,03,46,907 6,00,00,000

(Amountin~2) Platinum Realtors:#

Profit SharingShare of Capital

Name of Partners Ratio As on 3Ist March 2013 As on 31st March 2012

Mablma Real Estate Pvt. Ltd. 99% 2,90,99,127 -Mr. DeeDshlkharDhingra 1% (6) -

Total 100% 2,90,99,121 -# Firm has been constituted w.e.f. 19.02.2013 and therefore, figures for previous year could not be gIven.

)

. _i

.,

MAIIIMA REAL ESTATE PRIVATE LIMITEDJAIPUR

(Amount' ~Note: 2.12 Long Term Loans and Advances In


(A) Unsecured, considered good(a) Security Deposits:

- Related Parties 5,000,000 5,000,000- Others 14,750,323 12,382,867

Total (a) 19,750,323 17,382,867(b) Other Loans and Advances:

. - Related Parties 194,754,373 169,853,794Total (a) 194,754,373 169,853,794

Total (A-a+b) 214,504,696 187,236,661

(B) Unsecured, considered bad & doubtfulLoans and advances - 2,508,305Less: Bad-Debts - 2,508,305

Total (B) - -Total 214,504,696 187,236,661

..

CURRENT ASSETSNote: 2.13 Inventories (Amount in ~


Finished Stock 464,414,187 1,031,818,463Work In Progress 440,668,116 215,594,992Land 2,435,369 5,361,646

Total 907,517,672 1,252,775,101

(Amount in ~Note: 2.14 Trade Receivables


Unsecured, considered goodOutstanding Exceeding six months from the date due for payment 14,109,075 3,948,041Other Debts 9,274,317 83,455,483

Total 23,383,391 87,403,524

(Amount in ~

* Includes t 3,52,23,052 (Previous year { 1,27,39,504) with maturity over 12 months. Fixed Deposit Receipts oft 15,39,988(Previous Year t 14f2,892) lying as Margin Money against security of Bank Guarrantee and credit card.

vr--N1cf:~ 00~ .

Note: 2.15 Cash & Cash Equivalents


(A) Balances with Scheduled banks:- In Current Accounts 11,817,562 21,061,782

- In Deposit Accounts* 112,258,893 64,538,824

Total (A) 124,076,455 85,600,606

(B) Cash on hand 5,293,805 3,115,658

Total (A+B) 129,370,259 88,716,264

f,..,..- ~--~-~-----------------------------------MAHIMA REAL ESTATE PRIVATE LIMITED

JAIPUR

&AdL216 Sh TNote: ort erm. oans vances ( Amountin~

ParticularsAs at 31st-March 2013 As at 31st March 2012

Unsecured, considered goodA) Loans and advances- Related Parties 140,920,083 95,587,045- Others 161,445,075 103,640,905

-.B) Deposits against development agreements/ Joint Ventures:- Related Parties c 64,864,516 60,000,000- Others 114,821,065 31,725,000.,C) Other AdvancesMAT Credit Entitlement 80,711,891 60,621,334Service Tax Receivable 8,926,316 -

Income Tax 2012-13 2011-12Advance Income Tax 37,500,000 66,730,616Add: Tax Deducted at Source 8,032,292 6,730,616Less: Provision as per Contra (39,120,000) (73,461,232\ 6,412,292 -

Total 578,101,238 351,574,284

Note: 2.17 Other Current Assets Amount in f)

Particulars

Prepaid ExpensesDeposits with government departments under protest! appealAccrued Interest (FOR)Income Tax Refundable ~

.-i,

As at 31st March 20131,921,9527,904,7615,556,86532,560

15,416,138

As at 31st March 2012822,9193,985,2314,049,662

8,857,811

•.MAHIMA REAL ESTATE PRIVATE LIMITED

JAIPUR

oFN t 218 R

Note: In respect of projects where revenue recognition had commenced prior to April 20 I2, company continues tofollow project completion method of accounting for accounting of revenue. However, w.e.f. Ist April, 2012 for allprojects commencing on or after that date or the projects where the revenue is recognised for the first time on orafter that date, the revenue is recognised on percentage of completion method. This change in accounting policy hasresulted in increase of revenue for the year by ~ 44,60,43,260.

o e: . evenue rom JPerahons (Amount inParticulars For the Year ended For the Year ended

31st March 2013 31st March 2012Revenue from Real Estate Projects 1,21,10,36,919 1,61,25,49,934Rental Receipts 5,13,58,827 4,89,87,782Income from Parking 19,59,000 62,88,742

Total 1,26,43,54,746 1,66,78,26,458-0

( Amount in ~)Note: 2.19 Other Income

Particulars For the Year ended For the Year ended3Ist March 2013 31st March 2012

Interest EarnedFrom Banks 83,74,71 I 51,75,111From Others 4,24,31,111 3,32,5 I,242Other Non-Operating IncomeGain on sale of Property (Held as Investment) 98,88,970 -Profit on sale of Fixed Assets - 13,65,006Sundry Balances written back - 1,20,160Miscellaneous Income 23,51,310 27,25,661

Total 6,30,46, I02 4,26,37,180

(A t"~)Note: 2.20 Expenditure incurred on Construction/ Development moun m

For the Year ended For the Year endedParticulars3Ist March 2013 31st March 2012

Purchases of Construction Material 27,50,95,8 I8 39,62,39,666Conversion & other Legal Charges 5,26,04,370 3,05,44,580Building Construction & Development Expenses 22,13,49,667 24, I6, I5,397Rates & Taxes-Labour Cess 54,10,000 66,84,000Borrowing Cost (carried from Note 2.24) 4,49,54,295 1,09,78,55I

Total 59,94,14,150 68,60,62,194Add: Allocation of Directly attributable expenses (carried from

2,07,84,845 2,24,63,264Note No. 2.23 & 2.25)Grand Total 62,01,98,995 70,85,25,458

Note: 2.21 Purchases of Stock-in-Trade (Amount in ~

Particulars

Purchases of stock-in-trade (Residential Flat)Total

For the Year ended31st March 2013


40,37,10040,37,100

...


t' f F' , h d S k WNote' 2 22 Ch. . aD1!:es10 IOven orles 0 lOIS e toc , ork in pro ress & Land (Amount in ~

Particulars For the Year ended For the Year ended31st March 2013 31st March 2012

(A) Change in inventories of finished stockOpening stock 1,03,18,18,463 44,16,75,223Less: Inventory converted into Investment 4,29,78,538 -Less: Closing stock 46,44,14,187 1,03,18,18,463

Total (A) 52,44,25,738 -59,01,43,240(B) Change in inventories of Work- in-progressOpening stock 21,55,94,992 1,27,59,96,282Less: Closing stock 44,06,68,116 21,55,94,992

Total (B) -22,50,73,124 1,06,04,01,290(C) Change in inventories of LandOpening stock 53,61,646 -Less: Closing stock 24,35,369 53,61,646

Total (C) 29,26,277 -53,61,646Total (A+B+C) 30,22,78,891 46,48,96,404

-

B fit EN t 223 Eo e: . mJ:!loyee ene I xpenses (Amount in


(a) Salaries and Incentives:Salaries and allowances 3,32,84,464 3,32,01,444Bonus 14,87,628 -Gratuity* 36,37,312 -Directors Remuneration 84,00,000 84,00,000

(b) Contributuion to Provident Fund 8,18,449 8,47,987(c) Contributuion to ESIC 1,47,935 1,03,030I(d) Staff Welfare Expenses 3,48,444 7,36,504

Total (a+b+c+d) 4,81,24,232 4,32,88,965Less: Expenses allocated to pro.iects (carried to Note No. 2.20) 1,18,24,972 1,08,23,338

Net Total 3,62,99,260 3,24,65,627

1. Accounting Standard 15- "Employee Benefits"(a) Defined Contribution Plan (Amount in ~


Provident Fund 8,18,449 8,47,987Contributuion to ESIC 1,47,935 1,03,030

(b) Defined Benefit Plan

An employee is entitled for gratuity @ 15 days salary for every completed year of service after he has renderedcontinuous service for not less than 5 years. Accordingly Liability is calculated at ~ 36,37,312 (P.Y. ~ Nil).

* Hitherto company was providing liability for Gratuity as and when paid. From the current year the company isaccounting for the gratuity liability on accrual basis in respect of the eligible employees. Due to this change in theaccounting policy, t~e profit for the year is understated by ~ 25,75,593.

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MAHIMA REAL EST ATE PRIVATE LIMITEDJAIPUR

(Amount in ~Note: 2.24 Finance Cost


(A) Interest ExpensesBank on Tenn loans & OD Alcs

6,56,58,455 3,99,03,397Unsecured Loans & Others2,21,02,354 81,16,615l.(B) Other Borrowing Cost62,82,025 39,06,232Total Finance Cost (A+B) 9,40,42,835 5,19,26,244Less: Borrowing cost allocated to projects (carried to Note 2.20) 4,49,54,295 1,09,78,551Net Finance Cost (Transfer to Statement of P&L) 4,90,88,540 4,09,47,693

..

N t 225 Oth Eo e: er xpenses(Amount in


Electricity & Water Charges68,88,813 91,82,757Rent/Lease Rent23,40,925 16,43,494Repairs & Maintenance

Building17,80,604 26,89,153Computer & Software 4,85,063 3,67,432Office4,19,127 8,59,116Vehicles9,58,612 10,39,370Others4,78,553 1,83,468Insurance Charges9,83,997 5,50,971Payment to Auditors

Statutory Audit Fees 3,50,000 3,08,990Other Services65,000 2,06,372

Sales Promotion, Advertisement & Brokerage Expenses* 6,39,05,863 2,41,92,757Bad Debts written off 48,67,747 1,26,32,379Share of Loss In Partnership Finn 50,537 -Other Expenses** 2,38,15,095 2,37,08,694Total 10,73,89,937 7,75,64,952

Less: Expenses allocated to projects (carried to Note No. 2.20) 89,59,873 1,16,39,926Net Total 9,84,30,064 6,59,25,026

* Upto the previous year, the company was accounting brokerage and commission expenditure paid on booking offlats etc. in the year of accounting of sales revenue. However, from the current year the policy has been changed toaccount for such expenditure in the year of its incurrence. The effect of such change is not quantifiable.

** Other Ex enses includes followin : (Amount in ~

Particulars For the Year ended31st March 2013


Travelling & ConveyanceLegal & Professional Service ChargesFunction & Seminar Exp.Security & Facility Management ChargesTelephone & Trunkcalls ExpensesPrinting & StationeryFee & SubscriptionWebsite & Software ChargesCharity & DonationPostage & Courier ChargesMaintenance Charges (Finetech)Miscellaneous Ex enses

Total

48,07,01956,26,76616,08,70114,81,03516,09,24814,73,4463,67,0006,91,74410,33,3001,19,9635,31,16844,65,705

2,38,15,095

36,50,88738,68,00257,30,29124,11,39914,34,4319,03,7752,71,0008,44,5545,38,3002,07,519

38,48,5362,37,08,694

MAHIMA REAL EST ATE PRIVATE LIMITEDJAIPUR

N t 2 26 P' P . d Ad' to e: . nor eno I.lUS mentsParticulars As on 31.03.2013 As on 31.03.2012

Depreciation on Investment Properties (Carried from Note 2.11) 67,31,370 -Office Expense - 32,18l'Mobile Charges - 2,300Advertisement - 7,18,750Urban Development Tax - 2,42,464Repair & Maintenance (Vehicles) - 10,027Wages - 1,25,680Business Promotion - 2,36,185Material Purchases - 43,244

Total 67,31,370 14,10,831

.;

P ShN t 227 Eo e: . arnmg er areParticulars As on 31.03.2013 As on 31.03.2012

Profit attributable to equity share holders 17,36,92,295 35,62,91,288Weighted Average No. of Equity Shares 86,75,243 78,25,243Nominal Value per Share 10 10Basic & Diluted (In ~. Per share) 20.02 45.53

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MAHlMA REAL EST ATE PRIVATE LIMITEDJAIPUR

2.28 Segment ReportingThe Company has identified two reportable segments viz. Real Estate and Lease Rental. Details of primary segment information are as under:

11 ,~'il I"~

~)

(Amount in ~

~~~i\

Particulars2012-13 2011-12

Real Estate Lease Rental Total Real Estate Lease Rental TotalI Segment Revenue 1,211,036,919 53,317,827 1,264,354,746 1,612,549,934 55,276,524 1,667,826,458II Segment Result

Profit before Interest & Tax 205,101,536 39,458,210 244,559,746 367,710,800 55,276,524 422,987,324Less: Interest Expe'nses 49,088,540 40,947,693Profit before Tax 205,101,536 39,458,210 195,471,206 367,710,800 55,276,524 382,039,632Less: Tax Expenses 21,778,911 25,748,344Profit after Tax 205,101,536 39,458,210 173,692,295 367,710,800 55,276,524 356,291,288

Other InformationIII Segment Assets 2,333,396,845 229,206,569 2,562,603,4 I4 2,178,332,976 197,199,430 2,375,532,406IV Segment Liabilities 698,580,518 23,459,909 722,040,427 1,142,126,653 21,901,182 1,164,027,835V Capital Expenditure during the year 30,136,286 - 30,136,286 6,723,019 - 6,723,019VI Depreciation & Amortisation 11,774,275 13,859,617 25,633,892 10,215,867 - 10,215,867VII Non Cash Expenditure other than Depreciation

& Amortisation - - - - - -Business SegmentsThe primary reporting of the company has been prepared on the basis of business segments. Based on the results, company has two business segments namely, Real Estate and Lease Rentals.

Geographical SegmentsThe company's secondary segments are the geographical distribution of activities. The figures appearing in these financial statements relate to the company's single geographical segment, beingopeartions limited,to Rajasthan only .

.,,~~ .'*:~~ .

.~.~


Other Disclosures and Notes

( Amount in f)tL' bTf229 C fon I~en la I lIes

Particulars As-on As on31st March 2013 31st March 2012

a. Claims against the Company not acknowledged as debts 29,14,037 29,14,037Less: Advance received from customer 16,40,000 16,40,000Net Liability 12,74,037 12,74,037

b. Sales Taxi VatFor the Year 2006-07 - 25,62,740For the Year 2007-08 19,50,747 18,55,242Total liability 19,50,747 44,17,982(Amount paid f 3,29,455 (P;Y. f 1,28,455), Input Vat adjustable f 12,72,501(P.Y. f NIL»)

c. Income TaxFor the Assessment Year 2008-09 3,89,097 3,89,097For the Assessment Year 2009-10 \47,49,526 14,97,752For the Assessment Year 2010-11 10,35,220 -Total liability 61,73,843 18,86,849(Amount already paid f 51,38,623 (P.Y. f 18,86,849»)

d. Service TaxFor the Period Oct 2008 to Sep 2009 22,50,923 22,50,923For the Period Apr 2008 to Sep 2010 38,94,167 38,94,167Total liability 61,45,090 61,45,090(Amount already paid f 58,94,167 (P.Y. f 20,00,000»)

e. Stamp Duty 19,66,226 -(Amount already paid f 4,91,556 (P.Y. f NIL)

f. Other CommitmentsProject development & Construction Cost 1,88,78,66,892 2,52,36,49,356

2.30 Related Party Disclosure (AS-18)The disclosures of transactions' with the related parties as defined in the Accounting Standard 18 are given below:

(a) Subsidiary CompaniesPinkcity Heritage Resorts Private LimitedHarekrishna Buildhome Private Limited

(b) Firm in which company is partnerMMRea1tyPlatinum Realtors

(c) Enterprises in which KMP or their relatives are interested & Associates:Green Real Home Developers Private LimitedGlorious Buildhome Private LimitedMahima Landbase Private LimitedHot Nuts Restaurants Private LimitedCrystal Mall Developers & Maintenance Private LimitedPandupole Developers Private LimitedMiiliima Infra projects Private LimitedFintech Facility Management Services Private LimitedGreen Buildestate Private LimitedVastu Consultants & Developers Private LimitedMahima Finlease LimitedNikhil Townships Private LimitedAristro Projects LtdMM Design StudioMahima ~onsortiumMahirn~ 'Foundation

-vp..N I ~ s. DJiirendra Madan (HUF)'4:."(:. . 00


(d) Key Management Personnel:Mr. Dhirendra MadanMrs. Kusum Madan

(e) Relatives of Key Management Personnel:Mr. Nikhil Madan (Son ofMr and Mrs. Dhirendra Madan)Ms. Mahima Madan (Daughter ofMr and Mrs. Dhirendra Madan)

.~(APRTS' filImi Icant ransactlOns with elated arties: mount 10Relationship Nature of Transactions 2012-13 2011-12

Subsidiary Companies Interest Paid 45,28,095 -Interest Received 52,08,155 47,67,609Shares Purchased 2,68,25,600 -

Firm in which company is Interest Received 3,34,726 -Ipartner Share in Loss 50,537 -Enterprises in which KMP Interest Paid 73,24,663 57,19,392or their relatives are Interest Received 82,82,358 68,25,527interested Rent Received 3,00,000 3,00,000

Construction Job/Contract Work 4, I 1,44,071 1,70,23,477Other Charges 12,85,599 11,59,261

Key Management Personnel Interest Received 59,19,498 54,35,055Rent Paid 8,40,000 2,10,000Director's Remuneration 84,00,000 84,00,000

Relatives of Key Salary 18,00,000 11,75,000Management PersonnelTotal Interest Paid 1,18,52,758 57,19,392

Interest Received 1,97,44,737 1,70,28,191Shares Purchased 2,68,25,600 -Share in Loss 50,537 -Rent Received 3,00,000 3,00,000Construction Job/Contract Work 4,11,44,071 1,70,23,477Other Char!!es 12,85,599 11,59,261Rent Paid 8,40,000 2,10,000Director's Remuneration 84,00,000 84,00,000Salary 18,00,000 11,75,000

(f)

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fR I dOSlO2 a ances 0 e ate Parties (Amount in ~Relationshin Nature of Transactions 2012-13 2011-12Subsidiary Companies Loan Given 5,89,36,389 -Loan Taken 45,28,095 -Trade Payables - 5,49,948Advance Given 2,76,000 -Investment in Shares 4,88,25,800 2,20,00,200Firm in which company is Investment in Firm 20,76,19,189 50,00,000Partner

Enterprises in which KMP Loan Given 22,56,04,541 20,85,03,679or their relatives are Loan Taken 4,01,38,698 2,96,42,564interested Creditor for Works Contract or other Expenses 1,98,24,506 1,02,286Trade Receivables 23,60,646 20,58,623Advance against Bookin!! 1,54,14,688 1,54,14,688Security Deoosit Given 2,51,002 2,51,002Investment in Share Application Money 53,00,000 53,00,000Deposits against Development Agreement 6,48,64,516 6,00,00,000Key Management Personnel Loan Given 4,57,73,426 4,60,53,778Loan Taken 56,75,973 3,79,533Security Deposit Given 50,00,000 50,00,000Advance against Salary 2,10,915 -Creditor for Salary or Expense 1,26,000 4,97,187Relatives of Key Loan Given 55,000 55,63,282Management Personnel ,

~

Loan Taken 16,31,718 -Advance against Salary 2,20,968 -~~ <? Creditor for Salary or Expense - 80,144I'~:Ig .~ ;;

••..." ~..~~/'ed ACCo\)

(g) CI' B I

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MAHIMA REAL ESTA TE PRIVATE LIMITEDJAIPUR

2.31 Accounting for Leases (AS-19)

The future Minimum Lease Rentals under non- cancelable operating lease in the aggrerate amount to '{ 5687 Lacs (Previous year'{ 6178 Lacs)

Amount (In ~ Lacs)Particulars 2012-13 2011-12

Less than one vear 534 491Between one to five years 1,770 1,908Greater than five vears 3,383 3,779

Total 5,687 6,178

Generel discription of lease terms:a) Lease rentals are recognized on the basis of agreed terms.b) Assets are given on lease over a period of 5-15 years.

2.32Particulars 2012-13

8,22,594Nil

2.33 The Company's normal operating cycle may vary from project to project' depending upon the size of the project, type ofdevelopment, project complexities and related approvals. Operating cycle for all completed projects is based on 12 monthsperiod. Assets and Liabilities have been classified into current and non-current based on the operating cycle.

2.34 The figures of previous year have been reclassified, regrouped and rearranged. to make them comparable with the current year'sfigures.

For and on behalf of

M(jf)~;:~~:m~.~ ~~(Dh;n"d~ M.d,") (K","m Mod,") (S. K. "d<y) ~Managing Director Director ChiefFinanci I Officer Company Secretary,

..,

Place: JaipurDate: 19.08.2013

1•. -

In terms of our Audit Report of even dateFor Kalani & Company

Chartered Acc7~~~ann

FRN:~OOO~/

~K.L. anwarPartner

M. No. 14080

MREPL BS 2012-13 - Mahima Group FORTHEYEAR2012-13 MIS MAHIMA- REALESTATE PRIVATELIMITED AUDITORS...

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Transcript of MREPL BS 2012-13 - Mahima Group FORTHEYEAR2012-13 MIS MAHIMA- REALESTATE PRIVATELIMITED AUDITORS...