| Note 1: CORPORATE INFORMATION
Kaushalya Infrastructure Development Corporation Limited (the company)
is a public limited company domiciled in India and incorporated under
the provisions of the Companies Act, 1956. Its shares are listed on the
Bombay Stock Exchange and National Stock Exchange. The company is
primarily engaged in executing construction contracts relating to
infrastructure and real estate developments. Moreover, it carries on
the business in hotel segment, hotel industry and is also engaged in
acquiring and purchasing of land. The company's services are limited to
domestic markets only.
Note 2 : SHARE CAPITAL
(i) Rights, preferences and restrictions attached to equity shares:
The Company has issued only one class of equity shares having a par
value of Rs. 10/- per share. Each holder of equity shares is entitled
to one vote per share held. The dividend, if any, proposed by the Board
of Directors is subject to approval of the shareholders in the ensuing
Annual General Meeting, except in case of interim dividend. In the
event of liquidation of the Company, the holders of equity shares will
be entitled to receive remaining assets of the Company after
distribution of all preferential amounts. The distribution will be in
proportion to the number of equity shares held by the shareholders.
Note 3 : ADDITIONAL INFORMATION OF THE FINANCIAL STATEMENTS
3.1 : Contingent Liabilities and Commitments to the extent not
provided for
(Amount in Rs.)
Sl. Particulars As on As on
No. 31.03.2015 31.03.2014
1. a. Performance guarantees issued by
the banks to various Government 50,297,983 47,623,983
Authorises, for which the Company
has provided counter guarantee
against which fixed deposit
receipts have been pledged by
the Company.
b. Performance Guarantee issued on
behalf of other company against 8,674,000 8,674,000
which fixed deposit receipts
have been pledged by the Company
`
c. Bank Interest Reversed 4,542,695 Nil
2. Claims not acknowledged as debts
Income Tax Demand Nil 3,771,602
(Assessment Year 2004-05)
Income Tax Demand 90,875 72,381
(Assessment Year 2005-06)
Income Tax Demand Nil 923,573
(Assessment Year 2006-07)
Income Tax Demand 2,846,864 4,098,684
(Assessment Year 2007-08)
Income Tax Demand 3,026,950 Nil
(Assessment Year 2009-10)
Income Tax Demand 3,761,030 3,761,030
(Assessment Year 2010-11)
Income Tax Demand 190,580 4,165,834
(Assessment Year 2011-12)
Income Tax Demand 5,142,880 259,290
(Assessment Year 2012-13)
3.2 : Disclosures required under Section 22 of the Micro, Small and
Medium Enterprises Development Act, 2006 The Company is in the process
of identifying the suppliers, who would be covered under the Micro,
Small and Medium Enterprises Development Act, 2006. As confirmed by the
management, the company has not yet received any information about such
registration from the vendors and such information will be provided as
and when confirmation is received from them. However, as regards the
same, no documentary evidence has been found during the course of
audit.
3.3 : Disclosure as per clause 32 of the listing agreement
(Loans and advances in the nature of loans given to subsidiaries,
associates and others and investment in shares of the Company by such
parties)
The loans and advances in the nature of advances given by the company
to its Subsidiaries and Associates, amounts to Rs. 482,462,888/-, in
aggregate as on 31st March 2015. The details of the same have been
provided below:
3.4 : Earning in foreign exchange (net of TDS): Nil
3.5 : Amount remitted in foreign currency during the year on account
of dividend: Nil
3.6 : Current assets
In the opinion of the Board, the current assets have value on
realization in the ordinary course of business at least equal to the
amount at which they are stated in the Balance Sheet. However, the
following are the areas of concern:
a Outstanding Sundry debtors.
Out of total Sundry Debtors of Rs. 779,639,664/-, an amount of Rs.
737,506,104/- is outstanding since long, and out of which several
debtors are under dispute.
b. Short-term Advances:
The Company had advanced a net amount of Rs. 34,474,964/- to Flare
Realty Engineers Private Limited, for meeting its working capital
requirements. However, the work for execution of part of the work at
Sardasahar, Rajasthan of Nagar Palika project was awarded to the
Company. Thereafter, Flare Realty Engineers Private Limited asked for
security deposit against the said work and requested to transfer the
working capital advance to Security Deposit. The Company has accepted
the condition and agreed to transfer the working capital advance to
Security Deposit.
3.7 : Statutory Compliances
The following areas are of concern :
a. Service Tax Payable: Following information is worth noting in this
regard-
i. The company opted for the VCES, 2013 for the service tax payable
corresponding to the period from April' 2009 to December, 2012. The
total liability of the service tax for the said period stood to Rs.
1,59,43,004/-, payable in two equal installments on or before 31st Dec,
2013 and 30th June, 2014 respectively. The company has paid Rs.
79,72,657/- i.e 50% of declared liability till date. In, the mean time,
the Company has received a show cause cum demand notice from Service
Tax Commissionerate, Kolkata for Rs. 4,21,84,307/- for the said period.
However, the hearing of the matter is still pending.
ii. Apart from the afore-mentioned amount due under VCES, 2013, the
balance amount of Service Tax which is due to be paid is Rs.
1,04,51,981/-
iii. An amount of Rs. 14,01,229/- has been shown as Service Tax accrued
but not due for payment. This amount comprises of the tax accrued on or
before 1st July, 2011, which is to be paid on receipt basis,but not
paid till date as no payment has been recovered from the debtors
against the same since F.Y. 2010-11.
3.8 : Dilution of holding:
A) During the current financial year, the shareholding of the company
has diluted in one of its subsidiary : Kaushalya Township Private
Limited in which shareholding reduced from 73.49% to 48.69%. However,
Kaushalya Township Private Limited continue to be the step-down
subsidiary of the company as the company holds more than 50% of the
shareholding through its other subsidiary.
B) Details of companies which have cease as subsidiary and become
associates during the year under review as under:
a) Orion Abasaan Private Limited by reducing shareholding from 72.50%
to 48.33% on 28th day of March, 2015
b) Kaushalya Nirman Private Limited by reducing shareholding from
68.66% to 46% on 31st ay Day of March, 2015
3.9 : Fixed Deposits:
All the fixed deposits have been made against the Bank Guarantee and
under lien with the corresponding bank.
3.10 : Interest on credit cards:
The company has paid interest to the tune of Rs. 1,67,381/- on delayed
payment of credit cards of the directors.
Note 4 : During the year borrowing cost is not capitalized.
Note 5 : Related Parties*, Related Party Transactions and Balances
receivable/payable as at the end of the year
Related Party Disclosures as required by AS 18 issued by ICAI
I. Parties Where Control Exists Subsidiaries
1 Bengal Kaushalya Nirman Ltd.
2 Bengal KDC Housing Development Ltd.
3 Kaushalya Energy (P) Ltd.
Step Down Subsidiaries
4 Kaushalya Township (P) Ltd.
5 Azur Solar KDC (P) Ltd.
II. Joint Ventures
Jointly Controlled Entities
1 KIDCO - NACC
III. Associates
1 Kaushalya Nirman (P) Limited
2 Orion Abasaan (P) Limited
IV. Key Management Personnel :
1 Mr. Prashant Mehra, Managing Director
2 Mr. Ramesh Kumar Mehra, Chairman
3 Mr. Mahesh Mehra, Whole-time Director
4 Mr. Parag Keshar Bhattacharjee, Independent Director
5 Mr. Rajesh Kumar Agarwal, Independent Director
6 Mrs. Minoti Nath, Women Independent Director
V. Other Related Parties with whom the company had transactions during
the year
Relatives of Key Management Personnel :
1 Mr Kartik Mehra
2 Mr Karan Mehra
3 Mrs. Neeru Mehra
4 Ramesh Kumar Mehra HUF
Note 6: Other information:
a. Projects in hand:
The company is having three major running projects, construction of
integrated school and hostel complex for Westing House Saxby Farmer
Ltd., contract value of Rs. 7.25 Cr., Mega Housing project for EWS, LIG
& MIG through PPP in Sardarsahar, Rajasthan from Rajasthan Avas Vikas &
Infrastructure Ltd. of Rs. 51.66 Cr & Construction of Swarigarh SHP
from Uttarakhand Jal Vidyut Nigam (awarded to KIDCO-NACC Consortium)
contract value Rs. 14.83 Cr. In these projects, revenue to the tune of
Rs. 7.60 Crs. has already been recognized upto the year ending
31.03.2015.
b. Work order received from Power Department, Sikkim of Rs.
4,55,20,000/- in the year 2004-05. The company has completed the work
to the tune of Rs. 2,92,43,450/- but it has not been certified by the
said department and subsequently no payment has been released by them
against the aforesaid work done. The reason for not receiving the funds
as stated by the management is due to non availability of fund under
the APDRP scheme (the scheme of the project) in Sikkim.
c. The Company had filed a claim with their client NPCC Ltd. the
client in turn raised the claim to their principal NTPC and entered
into arbitration via P.M.A. The arbitration has awarded a claim of Rs.
8,55,23,452/- against a demand of Rs. 77,66,336/- and against this
award the principal has appealed before the Secretary of the P.M.A. As
per term the claim received by NPCC shall be passed on to the company
after deduction of their margins as per MOU.
d. It is also observed that the company has few debtors under dispute
and in case where any order is received against the said claims, the
company may prefer further appeal to the higher authority.
e. The bankers of the Company are considering a second restructuring
which is under review by lead banker The State Bank of India. The SBI
has also reversed part of earlier charged interest of Rs. 45.42 lacs in
account. This has also resulted/refiected in lower finance cost in
last quarter 31.03.2015. However, Bank shall have the right to
recompense the reliefs/sacrifices/waivers extended upto this
restructuring package.
Note 7 : Previous Year Figures
Previous year's figures have been regrouped / reclassified wherever
necessary to correspond with the current year's classification /
disclosure.
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