th 24 ANNUAL REPORT 2013-2014
Enduring�Quality�and�Trust
Giving Shape to Imagination
SRS REAL INFRASTRUCTURE LTD.SRS REAL INFRASTRUCTURE LTD.SRS REAL INFRASTRUCTURE LTD.
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
CONTENTS
Corporate Information 1
Chairman’s Speech 2
Director’s Report 3
Corporate Governance Report 10
Management’s Discussion & Analysis 25
Independent Auditors’ Report 30
Balance Sheet 34
Statement of Profit & Loss 35
Cash Flow Statement 36
Significant Accounting Policies and Notes to the Financial Statements 37
Financial Statements of SRS Real Estate Ltd. - A Subsidiary 62
Consolidated Financial Statements 94
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
Corporate Information
BOARD OF DIRECTORS
Dr. Anil Jindal - Non-Executive Chairman
Sh. Jitender Kumar Garg - Managing Director
Sh. Rajesh Singla - Whole-Time Director & CFO
Sh. Parveen Tayal - Non-Executive Director
Sh. Kailash Tayal - Independent Director
Sh. Praveen Sharma - Independent Director
Sh. Dilip Singh - Independent Director
Mrs. Kiran Arora - Independent Director
COMPANY SECRETARY
Ms. Shweta Marwah
STATUTORY AUDITORS
M/s. S.S. Kothari Mehta & Co.
M/s. Naresh Jai & Associates
COST AUDITORS
M/s. Ashok Kumar & Associates
INTERNAL AUDITORS
M/s Sachin S.C Singhal & Associates
BANKERS
Union Bank of India
State Bank of Patiala
Central Bank of India
Syndicate Bank
Oriental Bank of Commerce
Indian Overseas Bank
Canara Bank
ICICI
REGISTRAR AND SHARE TRANSFER AGENTBeetal Financial & Computer Services (P) Ltd.
rdBeetal House, 3 Floor, 99, Madangir, Behind Local Shopping Centre,Near Dada Harsukh Dass Mandir, New Delhi – 110062Tel: 011-29961281, Fax: 011-29961284
REGD. OFFICE SRS Tower, 721, 722, 727,
th7 Floor, Near Metro StationMewla Maharajpur, G.T. Road Faridabad, (NCR Delhi)-121003 Tel : 0129-4323100 Fax : 0129-4323195
CIN : L65910HR1990PLC040431
1
Dear Shareowners,
thI warmly welcome you to the Company’s 24 Annual General Meeting and am happy to state that the Company has put up a worthy performance in FY 14. Bravely facing the headwinds swaying the overall industry, it has recorded a performance that can rightfully be called impressive. You will be glad to know that in FY 14, the Company recorded a turnover of Rs.839 crores, with a PAT of Rs.3.9 crores.
Coming up with sterling performance such as this is an achievement when you look at the overall economic and industry scenario. India's economy is passing through a very challenging phase that is seeing high inflation with low growth. GDP growth in fact has halved in just about 3 years – from 9.5% to 4.5% last fiscal. To control high inflation, the RBI was pushed to usher in a high interest rate regime which hurt the overall business scenario as the cost of fund increased, and also consumers' ability to buy real estate on account of higher EMIs. The consumer sentiment was weak on account of lower economic growth, slow job creation, inflationary pressures and hence there was reluctance to go in for high ticket purchases. Small wonder then that the size of the unsold inventory across the industry rose. Developers watched helplessly as lowering prices, in the face of an upto 40% increase in input costs over the last year or two, was just not possible. Lastly, but not the least, political uncertainty and slow decision-making made things only worse.
In the backdrop of this, your Company's performance was like a spark in the middle of dark clouds. We made rapid progress across all our projects: possession was handed over for 12 Towers in SRS Residency, 5 Towers in SRS Royal Hills and 5 Towers in SRS Pearl Floor – all three in the prime Sector 87 & 88 of the new age Greater Faridabad region. Construction began for SRS Royal Hills Phase II with advanced planning and mechanization to build and deliver the best. Our other projects in Palwal and Rewari too witnessed good development. Our flagship SRS Corporate Tower continued to attract companies from a host of industries, who set up office at this landmark location. We also offered possession in Kurukshetra where we completed developmental work and received occupation certificate.
What's more, the company is fortunate to be left with very little inventory, which is a testimony to the tremendous repute and trust it enjoys in the marketplace. This enabled people get good flats and apartments and brought in good cash flows for the Company at good rates.
Going forward, we will continue our strong focus on our customers, and shall continue to delight them with quality constructions backed with speedy and timely deliveries. We truly want SRS to be the gold standard in real estate across all the geographies it operates in, and I have a feeling we are taking small, confident steps in that direction.
I believe that our current progress and future march is the result of many people coming together as one, and I would like to place on record my gratitude to them. First and foremost, to all our customers who chose to believe in us right from the early days, and have held their faith high enough. Deep appreciation to the Board which guided the efforts of the Company in the right direction in a most skillful manner, as well as to the Company's management and staff which made a reality out of dreams. Thanks also to all our vendors who partnered us as one of us, and demonstrated utmost solidarity. My heartfelt appreciation also goes out very especially to all the bankers, regulators, government authorities, auditors and everyone else who worked hard to guide us in the right direction and made achieving this success possible.
Thank you again, and it is my resolve, along with my team, to make this Company as solid as the mighty structures it creates. With your support, I am confident of making this a reality sooner than expected.
Chairman’s Speech
Warm wishes and best regards,
(Dr. Anil Jindal) Chairman
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
2
Directors' Report
To, The Shareowners,
thThe Directors of your Company feel pleasure in presenting the 24 Annual Report of the Company for the financial year 2013-14, along with the audited statement of accounts.
FINANCIAL RESULTS
During the year under review, your Company registered a Net Profit after tax of Rs.399.26 Lac. The Summary of the operating results is as under: -
(Rs. in Lac)Particulars 31.03.2014 31.03.2013 Revenue from Operations 83667.47 84956.47 Other Income 272.94 171.21 Total Income 83940.41 85127.68 Profit/(Loss) before Financial Expenses, Depreciation and Tax
3019.79 2256.27
Interest and Financial Expenses 2265.77 1341.94 Profit before Depreciation & Tax 754.02 914.33 Depreciation 165.58 94.37 Profit/(Loss) before Tax
588.44
819.96
Provision for Tax - Current - Deferred Tax - MAT credit entitlement - Tax on prior period incomes
118.62 146.98 (57.89) - (18.53)
271.94 33.34
0.11
Profit after Tax 399.26 514.57 Balance b/f from previous year 1861.67 1595.14 Appropriations: - Proposed Dividend 0.00 201.02 Dividend Distribution Tax 0.00 34.16 Amount transferred to General Reserves 0.00 12.86 Amount carried to Balance Sheet 2260.94 1861.67 Face Value of Equity Share (Re.) Earnings Per Share Basic & Diluted
1.00
0.20
1.00
0.26
RESULTS OF OPERATIONS
India's economy is passing through a very challenging phase that is seeing high inflation with low growth. Bravely facing the headwinds swaying the overall industry, your Company has recorded a performance that can rightfully be called impressive. You will be glad to know that in FY 14, the Company recorded a turnover of Rs.839.40 crores, with a PAT of Rs.3.99 crores.
DIVIDEND
To consolidate the future position of the Company and support the fund requirement to stimulate growth, your Board of Directors don’t recommend any dividend for the year under review.
stAs on 31 March, 2014, the sums amounting to Rs.1,96,927/- are lying as unclaimed in the various Unpaid Dividend Accounts of the Company.
BOARD OF DIRECTORS
thDr. Anil Jindal was re-designated as Non-Executive Chairman on 19 February, 2014. In terms of the provisions of Section 152 of the Companies Act, 2013, Dr. Anil Jindal is due to retire by rotation at the forthcoming Annual General Meeting of the Company and being eligible offers himself for re-appointment as Director of the Company.
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
3
As per the provisions of Section 203 of the Companies Act, 2013 every listed company shall have CFO, accordingly Sh. Rajesh Singla was appointed as thWhole-Time Director & CFO of the company for a period of 3 (three) years with effect from 19 February, 2014.
thSh. Jitender Kumar Garg was re-appointed as Managing Director of the Company for a period of Three (3) years with effect from 7 March, 2014.
thSh. Parveen Tayal was appointed as an Additional Director on 4 April, 2014. His tenure of office expires at the forthcoming Annual General Meeting and he is eligible for reappointment.
Sh. Bishan Bansal has been appointed as Whole-Time Director & CFO in the Company’s Holding Company M/s BTL Holding Company Ltd. and has thstepped down from the office of Whole-Time Director of the Company on 4 April, 2014. The Board places on record its sincere appreciation to Sh. Bishan
Bansal for taking the Company to such heights and for the services rendered by him during his tenure of his directorship.
nd Due to his other preoccupations, Sh. Nanak Chand Tayal has resigned from the directorship of the Company on 2 June, 2014. The Board places on record its sincere appreciation to Sh. Nanak Chand Tayal for the services rendered by him during his tenure of directorship.
Section 149(10) of the Companies Act, 2013 provides that Independent Directors shall hold office upto a term of five consecutive years on the Board of the Company and shall be eligible for reappointment by passing a special resolution by the shareholders of the Company.
All the Independent Directors of the Company were appointed as Independent Directors, liable to retire by rotation pursuant to erstwhile provisions of the stCompanies Act, 1956. With effect from 1 April, 2014, inter alia, provisions of Section 149 of the Companies Act, 2013 have been brought into force and in
terms of the said Section read with Section 152 (6), the provisions in respect of retirement by rotation are not applicable to Independent Directors. Moreover, qualifications, disqualifications and duties of Directors have been articulated in the Companies Act, 2013. Therefore, it is incumbent upon every Company to reappoint the Independent Directors in compliance with the provisions of the Companies Act, 2013.
Pursuant to the provisions of Section 149, 150, 152 and other applicable provisions of the Companies Act, 2013 and the Rules made thereunder (including any statutory modifications or re-enactments thereof) read with Schedule IV to the Companies Act, 2013, Sh. Kailash Tayal and Sh. Praveen Sharma, are
st stre-appointed as Independent Directors to hold office for five consecutive years from 1 August, 2014 upto 31 July, 2019, not liable to retire by rotation.
Pursuant to the provisions of Section 149, 150, 152 and other applicable provisions of the Companies Act, 2013 read with Rule 3 of the Companies (Appointment & Qualification of Directors) Rules, 2014, Sh. Dilip Singh and Mrs. Kiran Arora have been appointed as an additional (Independent)
th thDirectors of the Company to hold office for five consecutive years w. e. f. 7 July, 2014 upto 6 July, 2019, not liable to retire by rotation.
Notices under Section 160 of the Companies Act, 2013 have been received from members intending to propose the appointment of Directors of the Company at the ensuing Annual General Meeting.
thSh. Shiv Mohan Gupta has resigned from the Directorship of the Company on 7 July, 2014. The Board places on record its sincere appreciation for the services rendered by Sh. Shiv Mohan Gupta during his tenure of directorship.
thSh. Praveen Gupta has resigned from the Directorship of the Company on 7 July, 2014. The Board places on record its sincere appreciation for the services rendered by Sh. Praveen Gupta during his tenure of directorship.
thSh. Mahender Kumar Goyal has resigned from the Directorship of the Company on 7 July, 2014. The Board places on record its sincere appreciation for the services rendered by Sh. Mahender Kumar Goyal during his tenure of directorship.
A brief resume of these Directors, the nature of expertise in specific functional areas and names of Companies in which they hold Directorship and/or thMembership/Chairmanship of Committees of the Board, as stipulated under Clause 49 of the Listing Agreement, is annexed with the Notice calling 24
Annual General Meeting of the Company.
DE-LISTING OF SECURITIES
The Company has been voluntary delisted from Delhi Stock Exchange Ltd. (DSE) under SEBI (Delisting of Equity Shares) Regulations, 2009 w.e.f. 28.04.2014.
SUBSIDIARY COMPANIES
Your Company has the following Companies as its Subsidiaries:-
(I) SRS Real Estate Ltd.(ii) SRS Retreat Services Ltd.(iii) SRS Automotive Components Pvt. Ltd. (Formerly known as SRS I-Tech Pvt. Ltd.)(iv) Auspicious Real Estate Ltd.(from 03.05.2013)(v) Grand Realtech Ltd. (from 18.04.2013)(vi) Nav Nirman Realtech Ltd.(from 27.04.2013)(vii) SRS Natural Resources Ltd. (Formerly known as Arihant Dham Constructions Ltd.) (from 18.04.2013)(viii) Soaring Heights Ltd. (upto 30.03.2014)
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
4
A statement pursuant to the provisions of Section 212(1) (e) is annexed herewith forming part of this Report as “Annexure – I”.
nd The Board of Directors in its meeting held on 2 April, 2014 has given its consent for not annexing the accounts of Subsidiary Companies except for SRS Real Estate Ltd. The annual accounts of SRS Real Estate Ltd. and Consolidated Accounts are attached to the accounts of your Company. The copy of annual reports of Subsidiary Companies will be made available to the Holding and Subsidiary Company's Investors on request and will also be kept for inspection by any Investor at the Registered Office of your Company and that of the Subsidiary Companies.
CONSOLIDATED FINANCIAL STATEMENTS
In compliance with the Accounting Standard – 21 on Consolidated Financial Statements, this Annual Report also includes Consolidated Financial Statements for the financial year 2013-14.
FIXED DEPOSITS
Your Company has accepted deposits from the Public and Rs.4468.49 Lacs was outstanding towards maturity principal and interest on the date of the stBalance Sheet for the year ended 31 March, 2014.
AUDITORS
Statutory AuditorsM/s. S.S. Kothari Mehta & Co., Chartered Accountants, and M/s. Naresh Jai & Associates, Chartered Accountants, Joint Statutory Auditors of the Company, retire at the ensuing Annual General Meeting of the Company and have expressed their willingness for reappointment as joint statutory auditors in accordance with the Companies Act, 2013 and confirmed that their re-appointment, if made, will be within the prescribed limits under Section 141(3) of the Companies Act, 2013 and they are not disqualified for such reappointment within the meaning of Section 141 of the said Act.
Internal AuditorsM/s. Sachin S C Singhal & Associates
Cost Auditors M/s. Ashok Kumar & Associates
AUDITORS' REPORT
Auditors of the Company have not expressed any qualification in their report and notes to accounts where ever given are self-explanatory.
PERSONNEL
There are no employees during the period drawing remuneration specified under Section 217 (2A) of the Companies Act, 1956. As such, no particulars are required to be furnished.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO
Particulars required under Section 217(1)(e) of the Companies Act, 1956 read with Companies (Disclosure of Particulars in the Report of Board of Directors) Rules, 1988 are as follows: -
i) Conservation of energy
The main aim of the policies and technologies being adopted by the Company, in execution of its projects are to keep the embodied energy of the building as low as possible by adopting following techniques:
1. Selecting materials which have low embodied energy and which are more energy efficient. 2. Designing of services which will consume least energy during the operation of the building. 3. Using construction techniques which use less energy during the process of execution.
Besides ensuring low embodied energy through appropriate interventions it is also being ensured that the energy requirements during operation phase are also low. Details of steps being adopted for Conservation of energy are enumerated below:
a) Selection of materials:
Use of following materials is being encouraged on the project
l Poly Propylene Pipes/PVC pipes are being used for water supply and drainage works in place of traditional Galvanized Iron or Sand Cast Iron pipes.
l Unitized Sub-Stations (USS) are proposed to be used in place of conventional transformers and capacitor banks. The USS is, compact, fully safe and requires less space to get accommodated. It has inbuilt capacitor bank to maintain the power factor above 0.9.
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
5
l Using sandwich type rising mains, in place of conventional cable system for power distribution. These rising mains are maintenance free, have very less voltage drop, are easy to install & have more life. They are also very safe as they have no chimney effect; hence provide a better resistance to the spread of fire.
l Using Compact florescent lamp fittings & LED's for the lighting in common/passage areas, offices etc. has helped reduce electricity requirement.
l All elevators have Variable Frequency Drives. These consume about 30% lower energy during operation as compared to single frequency drive machines. The elevators are also designed to act in tandem thus respond faster to the calls.
l Use of dual energy meters log the energy consumption from mains and/or DG sets and also capture data through electronic interface and generate bills automatically. These also send alerts in advance indicating the balance left and requesting for recouping the payments. This reduces man hours spent in collecting this information.
l Rotary Air Cooled Screw Chillers having VFD for Air-conditioning plant have been provided. These chillers adjust the energy requirements when cooling loads vary.
l For all central units which do not have direct access to the outer shell water cooled system of air-conditioning has been provided. This helps in keeping energy requirements to the bare minimum.
l Using broken brick bat coba type water proofing for terrace. This helps in using all broken brick bats and also provides good thermal insulation.
l Using package type of sewage treatment plant. These plants are very easy to install and operate. The waste water generated is odorless and can be recycled for flushing system or Horticulture purposes. The solid waste generated can be used as manure.
l Special high performance glass is being used in the front façade and the windows. This glass has high light transmission but low heat conductivity. This has helped in reducing the overall heat gain of the building thus reducing the requirement of chillers etc.
b) Design elements being adopted or making buildings energy efficient
l The orientation of the building and the glazing is designed to more light penetration and yet prevent ingress of direct heat from sun light.
l Large windows and atrium are provided to allow natural light to penetrate to greater depths in the building thus reducing dependence on artificial lighting.
l Staircases and lifts are so located to allow easy vertical access. Reduction in travel distance and time reduces energy consumption during operational stage of the building.
l Provision for segregated air-conditioning system for common areas and office spaces has been done to reduce energy consumption and also allow targeted cooling of specific areas.
l The entire slab is designed as 'flat slab' to permit easier carrying of services and also permit easy casting and less wastage.
l A terrace garden is proposed to be created to provide for a pleasant view and permit the occupants to enjoy open space without having to leave the building.
ii) Technology absorption
Following modern construction/operation technologies being adopted
l By using ready mixed concrete produced in off site location in the building has helped in reducing noise and dust pollution at site and also reduced wastage of materials. Use of machine made RMC has also permitted use of fly-ash thus saving cement consumption
l The common area lighting is controlled from MCBs to ensure easy control.
l The external lighting system is proposed to be controlled by the timer switches. The time for the ON/OFF of Lights is set to match the setting/rising of Sun.
l Provision for rainwater harvesting is being made to make it a zero discharge building.
l Intelligent building management system is proposed to be installed which will monitor all operative parameters in real time and permit optimization of energy consumption.
l Building is equipped with a state of the art fire detection system which will help pin point the source of fire. It also has a talk back system and a public address system to ensure easy communication in case of any mishap. This system is supplemented with an automatic fire suppression system.
l Fiber optic cable is being used in the building to help carry large volume of data.
l A field laboratory has been set up at RMC plant to ensure that the quality of materials being used is conforming to the mandatory requirements and the concrete produced meets design standards.
iii) Foreign Exchange earning & outgo : Nil
DIRECTORS' RESPONSIBILITY STATEMENT
Pursuant to Section 217 (2AA) of the Companies Act, 1956, the Directors of the Company confirm the following: -
st(a) that in the preparation of the annual accounts for the year ended 31 March 2014, the applicable accounting standards had been followed along with proper explanation relating to material departures;
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
6
(b) that the directors had selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the profit and loss of the Company for that period;
(c) that the directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;
(d) that the directors had prepared the annual accounts on a going concern basis.
CORPORATE GOVERNANCE REPORT
The report on Corporate Governance together with the certificate from Ms. Savita Trehan, Practicing Company Secretary [C.P. No.2569], confirming the compliance of the Corporate Governance is attached to this report for information of the Members.
MANAGEMENT'S DISCUSSION & ANALYSIS
The Management's Discussion and Analysis Report of financial condition and results of operations of the Company is given as a separate statement forming part of this Annual Report.
ACKNOWLEDGEMENT
The Directors express their gratitude to the Government Authorities, Bankers, Stock Exchanges, RBI and other Financial Institutions. The Directors also thank all customers, dealers, suppliers, members and others connected with the business of the Company for their co-operation.
(Jitender Kumar Garg)Managing Director
DIN: 00088125Place: Faridabad
thDate: 7 July, 2014
For and on behalf of the Board
(Dr. Anil Jindal)Chairman
DIN: 00005585
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
7
STA
TE
ME
NT
PU
RS
UA
NT
TO
TH
E S
EC
TIO
N 2
12(3
) OF
TH
E C
OM
PAN
IES
AC
T,19
56, R
EL
AT
ED
TO
SU
BS
IDIA
RY
CO
MPA
NIE
SS
TAT
EM
EN
T P
UR
SU
AN
T T
O T
HE
SE
CT
ION
212
(3) O
F T
HE
CO
MPA
NIE
S A
CT,
1956
, RE
LA
TE
D T
O S
UB
SID
IAR
Y C
OM
PAN
IES
S.
NO
.PA
RT
ICU
LA
RS
SR
S R
ET
RE
AT
SE
RV
ICE
S
LIM
ITE
D
SR
S R
EA
L
ES
TAT
E L
IMIT
ED
SR
S A
UTO
MO
TIV
E
CO
MP
ON
EN
TS
PR
IVA
TE
LIM
ITE
D
AU
SP
ICIO
US
RE
AL
ES
TAT
E
LIM
ITE
D
NA
V N
IRM
AN
RE
ALT
EC
H
LIM
ITE
D
GR
AN
D
RE
ALT
EC
H
LIM
ITE
D
SR
S N
AT
UR
AL
RE
SO
UR
CE
S
LIM
ITE
D
1D
ate
from
whi
ch it
bec
ame
Sub
sidi
ary
28.1
2.20
0721
.01.
2008
04.0
4.20
0803
.05.
2013
27.0
4.20
1318
.04.
2013
18.0
4.20
13
2F
inan
cial
yea
r of
the
subs
idia
ry e
nded
on
31.0
3.20
1431
.03.
2014
31.0
3.20
1431
.03.
2014
31.0
3.20
1431
.03.
2014
31.0
3.20
14
3 H
oldi
ng c
ompa
ny's
inte
rest
in th
e su
bsid
iary
com
pany
at t
he e
nd o
f
finan
cial
yea
r 31
.03.
2014
No.
of s
hare
s
14
,675
,868
16
,763
,312
4,42
2,22
5
50
,000
50
,000
50,0
00
8,71
5,00
0
Pai
d-up
val
ue o
f sha
res
1
46,7
58,6
80
167,
633,
120
44
,222
,250
50
0,00
0
500,
000
50
0,00
0
87
,150
,000
Per
cent
age
of h
oldi
ng c
ompa
ny's
inte
rest
in th
e to
tal s
hare
cap
ital o
f
the
subs
idia
ry
100%
100%
100%
100%
100%
100%
100%
4 N
et a
ggre
gate
am
ount
of p
rofit
/los
ses
of th
e su
bsid
iary
com
pany
for
the
abov
e fin
anci
al y
ear
so fa
r as
they
con
cern
mem
bers
of t
he
com
pany
: st
a
) D
ealt
with
in th
e ac
coun
ts o
f the
com
pany
for
the
year
end
ed 3
1M
arch
,201
4 N
ilN
ilN
ilN
ilN
ilN
ilN
il
b)
Not
dea
lt w
ithin
the
acco
unts
of t
he c
ompa
ny fo
r th
e ye
ar e
nded
st
31 M
arch
,201
4 51
,480
9,
945,
558
62,2
15
1,11
7
1,
879
45
1
(844
,425
)
5 N
et a
ggre
gate
am
ount
of p
rofit
/los
ses
for
prev
ious
fina
ncia
l yea
rs o
f
the
subs
idia
ry s
ince
it b
ecom
e su
bsdi
ary
so fa
r as
they
con
cern
mem
bers
of t
he c
ompa
ny :
st a
) D
ealt
with
in th
e ac
coun
ts o
f the
com
pany
for
the
year
end
ed 3
1
Mar
ch,2
013
Nil
Nil
Nil
Nil
Nil
Nil
Nil
b)
Not
dea
lt w
ithin
the
acco
unts
of t
he c
ompa
ny fo
r th
e ye
ar e
nded
st
31 M
arch
,201
3
246,
688
84,8
09,0
80
(1
1,23
1,88
7)
N
ilN
ilN
ilN
il
AN
NE
XU
RE
- 1
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
8
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
9
DE
TAIL
OF
SU
BS
IDIA
RY
CO
MPA
NIE
S (
2013
-14)
S. N
O.
PA
RT
ICU
LA
RS
SR
S R
ET
RE
AT
SE
RV
ICE
S
LIM
ITE
D
SR
S R
EA
L
ES
TAT
E
LIM
ITE
D
SR
S A
UTO
MO
TIV
E
CO
MP
ON
EN
TS
PR
IVA
TE
LIM
ITE
D
AU
SP
ICIO
US
RE
AL
ES
TAT
E
LIM
ITE
D
NA
V N
IRM
AN
RE
ALT
EC
H
LIM
ITE
D
GR
AN
D
RE
ALT
EC
H
LIM
ITE
D
SR
S
NA
TU
RA
L
RE
SO
UR
CE
S
a)C
apita
l
146
,758
,680
16
7,63
3,12
0
44
,222
,250
50
0,00
0
50
0,00
0
500,
000
87,1
50,0
00
b) R
eser
ves
and
surp
lus
(adj
uste
d fo
r de
bits
bal
ance
in P
rofit
& L
oss
Acc
ount
whe
re a
pplic
able
)
137,
474,
939
981,
578,
518
102,
719,
328
1,11
7
1,87
9
451
(8
44,4
25)
c) T
otal
ass
ets
(Fix
ed a
sset
s+ In
vest
men
ts +
Cur
rent
ass
ets)
321,
156,
829
4,87
9,18
8,85
8
147,
021,
516
513,
698
518,
599
51
2,73
4
90
,706
,599
d) T
otal
liab
ilitie
s
(Loa
ns+C
urre
nt li
abili
ties)
36,9
23,2
10
3,
729,
977,
220
79
,938
12,5
81
16,7
20
12
,283
4,
401,
024
e) D
etai
ls o
f inv
estm
ents
(exc
ept i
n ca
se o
f inv
estm
ent i
n su
bsid
iarie
s)
Nil
1,00
0,00
0
Nil
Nil
Nil
Nil
Nil
f)Tu
rnov
er (
incl
udin
g ot
her
inco
me)
28,5
11,8
75
1,
162,
148,
386
4,
753,
104
44,0
00
45,0
00
45
,000
-
g)P
rofit
(Lo
ss)
befo
re ta
xatio
n17
1,87
6
15
,375
,762
90,7
65
1,
617
2,
719
65
3
(1,2
34,6
56)
h)P
rovi
sion
for
taxa
tion
120,
396
5,43
0,20
4
28,5
50
50
0
84
0
20
2
(390
,231
)
i)P
rofit
(Lo
ss)
afte
r ta
xatio
n51
,480
9,
945,
558
62
,215
1,11
7
1,87
9
451
(8
44,4
25)
j)P
ropo
sed
divi
dend
Nil
Nil
Nil
Nil
Nil
Nil
Nil
As
per t
he S
ectio
n 21
2(8)
of t
heC
ompa
nies
Act
,195
6 ,T
he B
alan
ce S
heet
, Pro
fit &
Los
s A
ccou
nt, D
irect
or's
Rep
ort a
nd A
udito
r's R
epor
t of t
he s
ubsi
diar
ies
and
othe
r doc
umen
t are
not
atta
ched
to th
e co
mpa
ny's
acc
ount
s ex
cept
of S
RS
Rea
l Est
ate
Ltd.
How
ever
, the
ann
ual a
ccou
nts
of th
e su
bsid
iary
com
pani
es a
nd th
e re
late
d de
taile
d in
form
atio
n w
ill b
e m
ade
avai
labl
e to
the
mem
bers
of t
he
hold
ing
and
subs
idia
ry c
ompa
nies
see
king
suc
h in
form
atio
n at
any
poi
nt o
f tim
e. T
he a
nnua
l acc
ount
s of
the
subs
idia
ry c
ompa
nies
will
als
o be
kep
t ope
n fo
r ins
pect
ion
by a
ny in
vest
or in
its
head
offi
ce
and
that
of t
he s
ubsi
diar
y co
mpa
nies
con
cern
ed.
Corporate Governance Report
1. COMPANY'S PHILOSOPHY ON CORPORATE GOVERNANCE Transparency and accountability are the two basic tenets of Corporate Governance. The Company is committed to Good Corporate Governance
practices aimed at increasing value for all stakeholders. The Company's Corporate Governance philosophy is based on SRS values focusing on fairness, transparency, accountability and responsibility, openness and trust.
Responsible corporate conduct is integral to the way we do our business. Our actions are governed by our values and principles, which are reinforced at all levels within the Company. The Company believes that sound Corporate Governance is critical for enhancing and retaining investor trust and your Company always seeks to ensure that is performance goals are met with integrity. Our Code of Business Principles is an extension of our values and reflects our continued commitment to ethical business practices across our operations.
The governance of the Company is to fulfill its legal, financial and ethical behavior. SRS Real Infrastructure values and code of business conduct provide the necessary framework in running our business with the highest standards of Corporate Governance and the Company has the well-informed and Independent Board for ensuring the same.
To succeed, we believe, requires highest standards of corporate behavior towards everyone we work with, the communities we touch and the environment on which we have an impact. This is our road to consistent, competitive, profitable and responsible growth and creating long term value for our shareholders, our people and our business partners. The above principles have been the guiding force for whatever we do and shall continue to be so in the years to come.
2. BOARD OF DIRECTORS
The composition of the Board of Directors of the Company is governed by the provisions of Companies Act, the Articles of Association of the Company and the Listing Agreement with the Stock Exchanges. The Board of the Company is an appropriate mix of Executive, Non-Executive and Independent Directors that bring with them expertise in the field of strategic management, human resource development, legal & finance among others and discharge their fiduciary responsibilities ensuring efficient management adhering to highest standards of transparency, integrity and ethics.
st As on 31 March, 2014, there are Ten (10) Directors on the Board of the Company, Three (3) Executive and Seven (7) Non-Executive Directors (including Five (5) Independent Directors). The composition of the Board is in conformity with Clause 49 of the Listing agreement.
Dr. Anil Jindal, a Non-Executive Director is the Chairman of the Board.
th th During the year under review, the Board of Directors of the Company met Twenty Five (25) times. These meetings were held on 16 April, 2013; 25 th th th th th th th rd thApril, 2013; 6 May, 2013; 14 May, 2013; 10 June, 2013; 24 June, 2013; 10 July, 2013; 15 July, 2013; 13 August, 2013; 23 August, 2013; 6
th rd th th th th thSeptember, 2013; 20 September, 2013; 3 October, 2013; 14 November, 2013; 26 November, 2013; 11 December, 2013; 7 January, 2014; 17 th th th th th th thJanuary, 2014; 4 February, 2014; 8 February, 2014; 14 February, 2014; 19 February, 2014; 7 March, 2014; 12 March, 2014; and 27 March,
2014.
The details regarding their attendance at the Board Meetings during the financial year 2013-14,the last AGM and their other Directorships/ Committee Chairmanships/Memberships in other Companies are as follows: -
Name of Director
Category
No. of Board
Meetings Attended
during the year
Attendance at last AGM held
on 20th September,
2013
No. of Positions held in Other Companies
Board*
Committee membership**
Committee Chairmanship** Public Private
Dr. Anil Jindal Chairman (Non-Executive Director)
25 Yes 5 - 2 1
Sh. Jitender Kumar Garg
Managing Director
25 Yes 2 2 - 1
Sh. Rajesh Singla Whole-Time Director & CFO
25 Yes
1 - -
Sh. Bishan Bansal #
Whole-Time Director
25 Yes
7
7
- - -
Sh. Parveen Tayal$
Non-Executive Director
N.A. N.A. 1 - - -
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
10
Name of Director
Category
No. of Board
Meetings Attended
during the year
Attendance at last AGM held
on 20th September,
2013
No. of Positions held in Other Companies
Board*
Committee membership**
Committee Chairmanship** Public Private
Sh. Nanak Chand Tayal##
Non-Executive Director
24 Yes 4 1 - -
Sh. Praveen Gupta###
Non-Executive & Independent
Director
15 Yes 1 - - -
Sh. Shiv Mohan Gupta###
Non-Executive & Independent
Director
17 Yes 1 1 - 1
Sh. Mahender Kumar Goyal###
Non-Executive & Independent
Director
19 Yes 2 - - -
Sh. Praveen Sharma
Non-Executive &Independent
Director
16 Yes 1 - 1 -
Sh. Kailash Tayal Non-Executive &Independent
Director
16 Yes 1 1 - -
Mrs. Kiran Arora@ Non-Executive & Independent
Director
N.A N.A - - - -
Sh. Dilip Singh@ Non-Executive & Independent
Director
N.A. N.A. 1 - 1 -
th# Resigned on 4 April, 2014.th$ Appointed on 4 April, 2014.
nd## Resigned on 2 June, 2014.th###Resigned on 7 July, 2014.
th@ Appointed on 7 July, 2014.* This includes Directorships held in Public Limited Companies, subsidiaries of Public Limited Companies & Private Limited Companies and
excludes Foreign Companies, Companies incorporated for charitable purposes and Alternate Directorships.** For the purpose of Committees of Board of Directors, Audit Committee and Shareholder's/Investor's Grievance Committee/Stakeholders
Relationship Committee in other Public Limited companies and subsidiaries of Public Limited companies are considered.ü None of the Directors is disqualified u/s 274(1) (g) of the Companies Act, 1956.ü None of the Directors hold the office of Director or Chairman/Member of a Committee in more than the permissible number of Companies
under the Companies Act, 2013.
Board Procedures:
The Board Meetings are governed by structured Agenda. The Agendas along with comprehensive notes, draft resolutions and background material are circulated well in advance before each meeting to all the Directors for facilitating effective discussion and decision making. The Board members may bring up any matter for consideration of the Board, in consultation with the Chairman
The information as specified in annexure IA to Clause 49 of the Listing Agreement is available to the Board. Presentations are made by the CFO and Business Heads on the Company's operations and other matters on a periodic basis. The proceedings of the meetings of the Board and its Committees are recorded in the form of minutes and the draft minutes are circulated to the Board for its perusal. The minutes of the Committee meetings are confirmed by the respective Committees and noted by the Board. The important decisions taken at the Board/Committee meetings are communicated to the concerned departments/ divisions promptly.
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
11
3. COMMITTEES OF THE BOARD The Board currently has 4 Committees: 1) Audit Committee, 2) Nomination and Remuneration Committee, 3) Stakeholders Relation Committee, 4)
Risk Management Committee. The terms of reference of the Board Committees are determined by the Board from time to time. The Board is responsible for constituting, assigning and co-opting the members of the Committees. The meetings of each Board Committee are convened by the respective Committee Chairman. The role and composition of these Committees, including the number of meetings held during the financial year and the related attendance are provided below.
AUDIT COMMITTEE
st As on 31 March, 2014, the Audit Committee comprised of: -
Sh. Praveen Sharma (Chairman) Sh. Shiv Mohan Gupta Sh. Kailash Tayal
th th th th During the year under review, Four (4) Audit Committee Meetings were held on 10 June, 2013; 13 August, 2013; 13 November, 2013 and 13February, 2014
Attendance at the meetings was as follows: -
Name Designation Category of Director No. of meetings
attended Sh. Praveen Sharma Chairman Independent Director 4 Sh. Shiv Mohan Gupta Member Independent Director 4 Sh. Kailash Tayal Member Independent Director 4
In addition to the members of the Audit Committee, Chief Financial Officer, Internal Auditors, Statutory Auditors, heads of accounts & finance etc. are invited for providing inputs to the Committee.
Ms. Shweta Marwah Company Secretary acts as Secretary of the Committee.
With the enactment of the Companies Act, 2013 and due to resignation of Sh. Shiv Mohan Gupta, the Audit Committee has been reconstituted in the thBoard Meeting held on 7 July, 2014 comprising of the following members: -
Ms. Kiran Arora (Chairperson) Sh. Kailash Tayal Sh. Praveen Sharma
The role & powers of the Audit Committee pursuant to the provisions of the Companies Act, 2013 and the amended Clause 49 of the Listing thAgreement, have been redefined on 7 July, 2014 as follows: -
Role of the Audit Committee
1. Oversight of the Company's financial reporting process and the disclosure of its financial information to ensure that the financial statement is correct, sufficient and credible.
2. Recommending the appointment, re-appointment, replacement, removal, remuneration and terms of appointment of statutory auditors, fixation of audit fees and approval of payment to statutory auditors for any other services rendered by them.
3. Review and monitor the auditor's independence & performance, and effectiveness of audit process;
4. Reviewing with the management the annual financial statements and auditor's report thereon before submission to the Board for approval, focusing primarily on the following:
l Matters required to be included in the Director's Responsibility Statement to be included in the Board's report in terms of clause (c) of sub section 3 of section 134 of the Companies Act, 2013.
l Any changes in the accounting policies and practices and reasons for the same l Major accounting entries involving estimates based on the exercise of judgment by the management l Qualifications in the draft audit report l Significant adjustments made in the financial statements arising out of audit findings
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
12
l The going concern assumption l Compliance with accounting standards l Compliance with listing agreement and provisions of all applicable laws relating to financial statements l Adequacy & effectiveness of internal financial control systems l Any related party transactions i.e. transactions of the Company of material nature with promoters/management/KMP or their relatives,
holding/ subsidiaries/associates/Joint Venture Company etc. that may have potential conflict with the interest of the Company at large. 5. Reviewing, with the management, the quarterly financial statements before submission to the board for approval;
6. Approval or any subsequent modification of transactions of the company with related parties;
7. Examination of the periodic financial statements and the auditor's report thereon
8. Scrutiny of inter-corporate loans and investments;
9. Valuation of undertakings or assets of the company, wherever it is necessary;
10. Evaluation of internal financial controls and risk management systems;
11. Monitoring & reviewing, with the management, the statement of uses / application of funds raised through an issue (public issue, rights issue, preferential issue, etc.), the statement of funds utilized for purposes other than those stated in the offer document/prospectus/notice and the report submitted by the monitoring agency monitoring the utilisation of proceeds of a public or rights issue, and making appropriate recommendations to the Board to take up steps in this matter;
12. Reviewing, with the management, performance of statutory and internal auditors, and adequacy of the internal control systems;
13. Reviewing the adequacy of internal audit function, if any, including the structure of the internal audit department, staffing and seniority of the official heading the department, reporting structure coverage and frequency of internal audit;
14. Discussion with internal auditors any significant findings and follow up there on;
15. Reviewing the findings of any internal investigations by the internal auditors into matters where there is suspected fraud or irregularity or a failure of internal control systems of a material nature and reporting the matter to the board.
16. Discussion with statutory auditors before the audit commences, about the nature and scope of audit as well as post-audit discussion to ascertain any area of concern;
17. To look into the reasons for substantial defaults in the payment to the depositors, debenture holders, shareholders (in case of non-payment of declared dividends) and creditors;
18. To review the functioning of the Whistle Blower & Vigil mechanism adopted by the Company;
19. Approval of appointment of CFO (i.e., the whole-time Finance Director or any other person heading the finance function or discharging that function) after assessing the qualifications, experience & background, etc. of the candidate;
20. Reviewing the Company's financial and risk management policies;
Powers of Audit Committee
The audit committee shall have powers, which should include the following:
1. To investigate any activity within its terms of reference; 2. To seek information from any employee; 3. To obtain outside legal or other professional advice; 4. To secure attendance of outsiders with relevant expertise, if it considers necessary;
Review of information by Audit Committee
The Audit Committee shall mandatorily review the following information:
1. Management discussion and analysis of financial condition and results of operations; 2. Statement of significant related party transactions (as defined by the audit committee), submitted by management; 3. Management letters / letters of internal control weaknesses issued by the statutory auditors; 4. Internal audit reports relating to internal control weaknesses; and 5. The appointment, removal and terms of remuneration of Chief Internal Auditor.
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
13
INVESTORS GRIVEANCE AND SHARE TRANSFER COMMITTEE (RENAMED AS STAKEHOLDERS RELATIONSHIP COMMITTEE)
st As on 31 March, 2014, the Investor's Grievance and Share Transfer Committee comprised of: -
Sh. Nanak Chand Tayal (Chairman) Sh. Jitender Kumar Garg Dr. Anil Jindal
thDuring the year under review, the Committee was also reconstituted due to re-designation of Sh. Rajesh Singla as WTD & CFO on 19 February, 2014.
st thDuring the financial year ending on 31 March, 2014, Fourteen (14) Investors' Grievance and Share Transfer Committee meetings were held on 8 April, th st th th th nd rd st nd2013; 30 April, 2013; 1 May, 2013; 14 May, 2013; 19 June, 2013; 8 July, 2013; 22 July, 2013; 23 July, 2013; 21 August, 2013; 2 September, 2013;
th th st th14 September, 2013; 24 December, 2013; 1 February, 2014 and 28 February, 2014
Attendance at the meetings was as follows: -
th# Re-designated on 19 February, 2014.th* Designated as Chairman on 19 February, 2014.
During the financial year 2013-14, the status of shareholders/investors complaints are as follows-
Pursuant to Section 178 of the Companies Act, 2013 it is incumbent upon every Company which consists of more than One Thousand shareholders, debenture holders, deposit holders or any other security holders at any time during the financial year to constitute a Stakeholders Relationship Committee.
Hence, the Investor's Grievance and Share Transfer Committee of the Company has been renamed as 'Stakeholders Relationship Committee' in the thBoard Meeting held on 7 July, 2014. The Committee was also reconstituted in the same meeting in compliance with the provisions of the Act and
amended Clause 49 of the Listing Agreement, comprising of the following Directors: -
Dr. Anil Jindal (Chairman)Sh. Rajesh SinglaSh. Parveen Tayal
Ms. Shweta Marwah, Company Secretary acts as Secretary of the Committee.
The Committee has been formed with a view to undertake the following: -
a. To consider and approve requests for transfers, transmissions, dematerialization/ rematerialisation and issue of fresh share certificates on replacement/sub-division/ consolidation, issue of duplicate share certificates on loss whether by theft, misplacement or otherwise;
b. To review the status of dematerialization of Company's shares and matters incidental thereto;
c. To review and monitor the approval to the transfers and transmission made by any Director under executive authority delegated to him from time to time;
d. To monitor the matters of litigation related to shareholders and take decisions relating thereto;
e. To consider, review and monitor the matters related to the shareholders grievances, and to look into the redressing of shareholder and investor complaints like transfer of shares, non-receipt of balance sheet, non-receipt of declared dividend, etc.;
f. To consider and finalize the report on Corporate Governance to be annexed with the Annual Report of the company;
g. To deal with any other matters related and/or incidental to the shareholders.
Name Designation Category of Director No. of meetings
attended Sh. Rajesh Singla# Chairman Non-Executive Director 13 Sh. Nanak Chand Tayal* Member/Chairman Non-Executive Director 14 Sh. Jitender Kumar Garg Member Joint Managing Director 14 Dr. Anil Jindal Member Non-Executive Director 1
S. No.
Period Opening Received during
quarter Closing
1. 1st April, 2013 to 30th June, 2013 Nil Nil Nil 2. 1st July, 2013 to 30th September, 2013 Nil Nil Nil 3. 1st October, 2013 to 31st December, 2013 Nil Nil Nil 4. 1st January, 2014 to 31st March, 2014 Nil Nil Nil
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
14
REMUNERATION COMMTTEE (RENAMED AS NOMINATION & REMUNERATION COMMITTEE)
stAs on 31 March, 2014, the Remuneration Committee comprised of: -
Sh. Mahender Kumar Goyal (Chairman)
Sh. Praveen Sharma
Sh. Praveen Gupta
th thDuring the financial year, Two (2) Remuneration Committee Meetings were held on 18 February, 2014 and 7 March, 2014 and were attended by all the members.
The Company has changed the name of Remuneration Committee to Nomination & Remuneration Committee and reconstituted its Charter in the Board thMeeting of the Company held on 7 July, 2014 in order to comply with the provisions of Section 178 of the Companies Act, 2013.
The Nomination & Remuneration Committee comprises of following Directors:
Sh. Dilip Singh (Chairman)
Sh. Kailash Tayal
Sh. Praveen Sharma
Ms. Shweta Marwah, Company Secretary acts as Secretary of the Committee.
The role of Nomination and Remuneration Committee is as follows:
1. To formulate the criteria for determining qualifications, positive attributes and independence of a Director and recommend to the Board a policy, relating to the remuneration for the Directors, Key Managerial Personnel and other employees.
2. To formulate the criteria for evaluation of Independent Directors and the Board;
3. Devise a policy of Board diversity;
4. To identify persons who are qualified to become Directors, and who may be appointed in senior management in accordance with the criteria laid down, recommend to the Board their appointment and removal, and carry out evaluation of every Director's performance;
5. To approve in the event of loss or inadequate profits in any year the minimum remuneration payable to the Managing Director/Whole Time Directors within limits and subject to the parameters as prescribed in Schedule V of the Companies Act, 2013.
The Nomination and Remuneration Committee shall, while formulating the policy will ensure that:
1. The level and composition of remuneration is reasonable and sufficient to attract, retain and motivate the Directors of the quality required to run the Company successfully;
2. Relationship of remuneration to performance is clear and meets appropriate performance benchmarks; and
3. Remuneration to Directors, Key Managerial Personnel and Senior Management involves a balance between fixed and incentive pay reflecting short and long term performance objectives appropriate to the working of the company and its goals.
Details of Remuneration
The Company pays remuneration to Executive Directors by way of Salary, Perquisites & Retirement Benefits, based on recommendation of the Committee and requisite approvals, including approvals from the Board, Shareholders and the Central Government, if necessary.
The Company pays Rs.3000/- to Non-Executive and Independent Directors by way of sitting fees for attending each meeting of the Board of Directors of the Company and Rs.1500/- for attending each committee meeting. The said fees is inclusive of all expenses of traveling/conveyance etc. for the meetings held/to be held in NCR Delhi and excluding the Boarding/lodging charges etc. for the meetings held/to be held outside NCR Delhi.
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
15
The details of remuneration paid/payable to Directors for the F.Y. 2013-14 are as follows:
EXECUTIVE DIRECTORS
Details of remuneration paid to Executive Directors is as follows: - (In Rs.)
th* resigned on 4 April, 2014th@ re-designated as WTD & CFO on 19 February, 2014.
NON-EXECUTIVE DIRECTORS Details of remuneration paid to Non-Executive Directors is as follows: - (In Rs.)
th*Re-designated as Non-Executive Director on 19 February, 2014th**Re-designated as WTD & CFO on 19 February, 2014
No compensation/remuneration is payable to the directors on severance of their directorship with the Company.
During the financial year, there was no pecuniary relationship or transaction between the Company and its Non-Executive Directors.
stNumber of Shares held by Non-Executive & Independent Directors as on 31 March, 2014 are as follows: -
th# Re-designated as WTD & CFO on 19 February, 2014.th*Resigned on 7 July, 2014
Name of Director Designation Total Remuneration Sh. Jitender Kumar Garg Managing Director 11, 36,628 Sh. Bishan Bansal* Whole-Time Director 6, 82,416 Sh. Rajesh Singla @ Whole-Time Director & CFO 78, 060
Name of Director Sitting Fees for attending Board
Meetings
Sitting Fees for attending Committee Meetings
Total Sitting Fees
Dr. Anil Jindal* 9,000 1,500 10,500
Sh. Nanak Chand Tayal 72,000 21,000 93,000
Sh. Rajesh Singla** 63,000 19,500 82,500
Sh. Praveen Gupta 45,000 3,000 48,000
Sh. Shiv Mohan Gupta 51,000 6,000 57,000
Sh. Kailash Tayal 48,000 6,000 54,000
Sh. Mahender Kumar Goyal 57,000 3,000 60,000
Sh. Praveen Sharma 48,000 9,000 57,000
Total 3,93,000 69,000 4,62,000
Name No. of Shares % Sh. Rajesh Singla# 8,38,000 0.42 Sh. Nanak Chand Tayal 8,81,000 0.44 Sh. Shiv Mohan Gupta* 20,000 0.0099 Sh. Shiv Mohan Gupta* (As Karta of HUF)
20,000 0.0099
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
16
RISK MANAGEMENT COMMITTEE
thThe Board constituted risk management committee on 7 July, 2014 consisting of the following members:-
Sh. Parveen Tayal (Chairman)Dr. Anil JindalSh. Kailash Tayal
The Committee has been formed with a view to undertake the following:
a) The committee's duties are based on 2 broad categories-risk management and governance.b) Recommend to the Board and then formally announce, implement and maintain a sound system of risk oversight, management and internal control which identifies, assesses, manages and monitors risk. CORPORATE SOCIAL RESPONSIBILITY COMMITTEE
As per Section 135 of the Companies Act, 2013 every company having net worth of rupees five hundred crore or more, or turnover of rupees one thousand crore or more or a net profit of rupees five crore or more during any financial year shall constitute a Corporate Social Responsibility Committee of the Board consisting of three or more directors, out of which at least one director shall be an independent director.
thAccordingly, the Board in its meeting held on 7 July, 2014 constituted Corporate Social Responsibility Committee consisting of the following members: -
Sh. Rajesh Singla (Chairman)
Sh. Parveen Tayal
Ms. Kiran Arora The Committee has been formed with a view to undertake the following:
a) formulate and recommend to the Board, a Corporate Social Responsibility Policy which shall include the activities to be undertaken by the Company as specified in Schedule VII of Companies Act, 2013;
b) recommend the amount of expenditure to be incurred on the activities referred in clause (a); and
c) monitor the Corporate Social Responsibility Policy of the Company from time to time.
4. GENERAL BODY MEETINGS
The last three Annual General Meetings were held as under:-
Year Venue Day/Date Time
2012-13 “SRS Banquet” Friday/20.09.2013 11.00 A.M.
Near SRS Multiplex,
City Centre, Sector – 12,
Faridabad - 121007
2011-12 “SRS Banquet” Saturday/29.09.2012 1.00 P.M.
Near SRS Multiplex,
City Centre, Sector-12,
Faridabad-121007
2010-11 “SRS Banquet” Friday/30.09.2011 1.00 P.M.
Near SRS Multiplex,
City Centre, Sector-12,
Faridabad-121007
All resolutions moved at the Last Annual General Meetings were passed unanimously by show of hands. No special resolution was passed at the Annual General Meetings held in past 3 years.
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
17
No Extra Ordinary General Meeting was held during the last three financial years.
No resolution was passed through Postal Ballot during the financial year 2013-14.
5. DISCLOSURES
a) There have been no materially significant related party transactions, pecuniary transactions or relationship between the Company and its stDirectors or their relatives for the year ended 31 March, 2014 that may have a potential conflict with the interest of the Company at large.
Disclosures to this effect have also been received from the Directors of the Company. The Register of Contracts containing transactions, in which Directors are interested, is placed before the Board regularly.
Related Parties and transactions with them as required under Accounting Standard (AS-18) are furnished in Note No. 39 of the Notes on stAccounts attached with the Financial Statements for the year ended 31 March, 2014.
b) There has been no instance of non-compliance with any legal requirement nor have there been any strictures imposed by any Stock Exchange, SEBI or any Statutory Authority on any matters related to the capital market during the last three years.
c) For the year under review, all Directors & Senior Management Personnel of the Company have confirmed their adherence to the provisions of the Code of Conduct applicable to them.
d) The Company follows the mandatory Accounting Standards prescribed by the Institute of Chartered Accountants of India and, to the best of its knowledge; there are no deviations in the accounting treatments which require specific disclosure.
e) As on date, there is no formal Whistle Blower Policy, however, the same is under consideration and no personnel has been denied access to the Audit Committee or the Board.
f) The Company has complied with all the mandatory requirements of Clause 49 of the Listing Agreement.
g) The Company has so far not implemented other non-mandatory requirements of Clause 49 of the listing agreement.
6. MEANS OF COMMUNICATION
The quarterly/half yearly and annual financial results of the Company are generally published in The Pioneer/Business Standard/Financial Express in English and Hari Bhoomi/Veer Arjun/Jansatta in Hindi for the information of all the Shareholders. In addition, the quarterly/half yearly and annual financial results are posted on the Group's website at www.srsparivar.com.
All material information about the Company is promptly sent to the stock exchanges and regular notices/updates are given/provided to the media
and shareholders about its financial as well as other developments.
Annual Report containing inter-alia Audited Accounts, Directors' Report, Corporate Governance Report, Management Discussion & Analysis Report and all other important information is sent to the shareholders and others entitled thereto.
7. GENERAL SHAREHOLDER INFORMATION
th a) 24 Annual General Meeting Day Thursday
th Date 28 August, 2014 Time 10:30 A.M. Venue “SRS Banquet” Near SRS Multiplex, City Centre, Sector – 12, Faridabad (NCR Delhi) - 121007
b) Financial Year st st 1 April to 31 March
Financial Calendarst th 1 Quarter Results 13 August, 2013nd th 2 Quarter Results 14 November, 2013rd th 3 Quarter Results 14 February, 2014th th 4 Quarter & Annual Results 28 May, 2014
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
18
c) ISIN for NSDL & CDSL
INE953I01023
d) Book Closure nd th 22 August, 2014 to 28 August, 2014 (both days inclusive)
e) Listing on Stock Exchanges
Bombay Stock Exchange Limited (BSE)th 14 Floor, P J Jeejeebhoy Towers,
Dalal Street, Fort, Mumbai – 400 001
st f) Unclaimed Dividend as on 31 March, 2014
Amount unclaimed in Dividend Account (F.Y.2007-08) Rs.27,360/-
Amount unclaimed in Dividend Account (F.Y.2008-09) Rs.26,100/-
Amount unclaimed in Interim Dividend Account (F.Y.2008-09) Rs.5,102/-
Amount unclaimed in Dividend Account (F.Y.2009-10) Rs.10,282/-
Amount unclaimed in Dividend Account (F.Y.2010-11) Rs.89,397/-
Amount unclaimed in Dividend Account (F.Y.2011-12) Rs.19,625/-
Amount unclaimed in Dividend Account (F.Y.2012-13) Rs.19,061/-
g) Listing fees to Stock Exchanges
The Company has paid the Annual Listing Fees to the above Stock Exchange for the Financial Year 2014-15.
h) Scrip Code
BSE - 533305
i) Share Price Data Bombay Stock Exchange Limited (BSE)
Month High (Rs.)
Low (Rs.)
No. of Shares
April, 2013 41.95 40.15 38,72,056 May, 2013 41.45 40.65 51,11,402 June, 2013 41.05 40.70 42,40,399 July, 2013 45.00 40.70 38,74,375 August, 2013 41.00 35.00 31,81,530 September, 2013 38.50 36.45 42,82,151 October, 2013 41.00 37.00 44,47,470 November, 2013 42.25 35.10 30,25,102 December, 2013 37.60 35.70 37,25,305 January, 2014 37.30 36.50 47,96,623 February, 2014 38.10 36.80 46,44,714 March, 2014 38.45 36.80 1,30,66,042
j) Registrar and Transfer Agents Beetal Financial & Computer Services Pvt. Ltd.
rd Beetal House, 3 Floor, 99, Madangir, Behind Local Shopping Centre, New Delhi – 110062 Ph. # 011-29961281-283 Fax # 011-29961284
k) Share Transfer System Investors' Service Committee is constituted to approve all the transfers, transmission, remat of shares etc. and all shares transfer/ transmission/transposition/ dematerialization is handled by our Registrar and Transfer Agent's. All the work of transfer/transmission etc. is done within the minimum stipulated time.
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
19
l) Distribution of shareholding
Shareholding No. of % No. of Amount %
of Nominal Value Shareholders to Total Shares In Rs. to Total
(Rs.)
Up to 5000 762 84.48 1,60,749 1, 60,749 0.0800
5001 to 10000 12 1.33 1,10,651 1, 10,651 0.0550
10001 to 20000 21 2.33 3,86,979 3, 86,979 0.1925
20001 to 30000 5 0.55 1,35,826 1, 35,826 0.0676
30001 to 40000 5 0.55 1,70,950 1, 70,950 0.0850
40001 to 50000 3 0.33 1,42,000 1, 42,000 0.0706
50001 to 100000 13 1.44 9,39,333 9, 39,333 0.4673
100001 and above 81 8.98 19,89,69,512 19, 89, 69,512 98.9819
TOTAL 902 100.00 20,10,16,000 20, 10, 16,000 100.0000
m) Dematerialization of Shares st As on 31 March, 2014 – 20,00,29,849 shares equivalent to 99.51% were held in demat form.
n) There has been no outstanding GDRs/ADRs/warrants or any convertible instruments.
o) Custodial Fees to Depositories
The Company has paid the annual custodial fees for the financial year 2014-15 to Central Depository Services (India) Limited (CDSL) and National Securities Depository Limited (NSDL).
p) Secretarial Audit
As stipulated by SEBI, a Company Secretary in Practice conducts the Secretarial Audit of the Company for the purpose of reconciliation of total admitted capital with the depositories i.e. NSDL and CDSL, and the total issued and listed capital of the Company.
q) Request to Investors
i) Investors holding shares in electronic form are requested to deal only with their respective depository participant for change of address, nomination facility, bank account number etc.
ii) All requests and other communications/correspondence should be sent at the Company's Registered Office at: -
Ms. Shweta Marwah
Company Secretary
SRS Real Infrastructure Ltd.th SRS Tower, 7 Floor,
Near Metro Station Mewla Maharajpur,
G. T. Road, Faridabad (NCR Delhi) – 121003
Ph. # 0129-4323117
Fax # 0129-4323105
Email: [email protected]
8. CODE OF CONDUCTS
a. Code of Conduct for Prevention of Insider Trading & Corporate Disclosure Practice
The Company has implemented Code of Conduct for Prevention of Insider Trading & Corporate Disclosure Practices to prohibit the purchase/sale of shares of the Company by employees in possession of unpublished price sensitive information pertaining to the Company. The Policy and the procedures are periodically communicated to the employees who are considered as insiders. Further, they have been well intimated in advance about the closure of trading window, whenever required.
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
20
b. Code of Business Conduct & Ethics
The Code of Business Conduct & Ethics is applicable to all the Directors and Senior Management Personnel of the Company.
The Company has obtained declarations from all its Directors and Senior Management Personnel affirming their compliance with the a p p l i c a b l e st code of conduct for the financial year ended 31 March, 2014. The declaration to this effect signed by the Chairman (Non-Executive) and Managing
Director of the Company forms part of this report as Annexure - A.
Place: FaridabadthDate: 7 July, 2014
(Jitender Kumar Garg)Managing Director
DIN: 00088125
For and on behalf of the Board
(Dr. Anil Jindal)Chairman
DIN: 00005585
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
21
ANNEXURE - A
Declaration Affirming Compliance of provisions of the Code of Conduct
This is to certify that pursuant to Clause 49(I) (D) of the Listing Agreement, the Board of Directors has adopted a Code of Conduct for its members and stSenior Management personnel and that they have affirmed having complied with the said Code of Conduct for the financial year ended 31 March, 2014.
Place : FaridabadthDate : 7 July, 2014
(Jitender Kumar Garg)Managing Director
(Dr. Anil Jindal)Chairman
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
22
Certificate from Practicing Company Secretary regarding Compliance of Conditions of Corporate Governance
To The Members SRS Real Infrastructure Ltd.
st I have examined the Compliance of conditions of Corporate Governance by 'SRS Real Infrastructure Ltd.” (the Company) for the year ended 31March, 2014 as stipulated in Clause 49 of the Listing Agreement.
The Compliance of conditions of Corporate Governance is the responsibility of the Company's management. My examination has been limited to a review of the procedures and implementation thereof, adopted by the Company for ensuring the compliance of the conditions of Corporate Governance as stipulated in the said clause.
In my opinion and to best of my information and according to the explanations given to me, I certify that the Company has complied with the conditions of Corporate Governance as stipulated in the Clause 49 of the Listing Agreement.
SAVITA TREHANCOMPANY SECRETARY
2378, SECTOR-16,FARIDABADPH. NO. 4015880, 40748809811193880
Place : FaridabadthDate : 7 July, 2014
(Savita Trehan)Company Secretary
C.P. No. 2569
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
23
Certifications by Chairman, MD & CFO of the Company
We, Anil Jindal, Chairman, Jitender Kumar Garg, Managing Director and Rajesh Singla, WTD & CFO, of 'SRS Real Infrastructure Ltd.', to the best of our Knowledge and belief, certify that:
1. We have reviewed the Balance Sheet, Statement of Profit & Loss and Cash Flow Statement along with all the Notes for the year and to the best of the our knowledge and information:
(i) these statements do not contain any materially untrue statement or omit any material fact or contain statements that might be misleading;
(ii) these statements together present a true and fair view of the Company's affairs and are in compliance with existing accounting standards, applicable laws and regulations.
2. To the best of our knowledge and belief, no transactions entered into by the Company during the year are fraudulent, illegal or violative of the Company's code of conduct.
3. We are responsible for establishing and maintaining internal controls for financial reporting and have evaluated the effectiveness of internal control systems of the Company pertaining to financial reporting and have disclosed to the Auditors and Audit Committee, wherever applicable: a) Deficiencies in the design or operation of internal controls, if any, which come to our notice and steps have been taken/proposed to be taken to rectify these deficiencies;
b) Significant changes in internal control over financial reporting during the year;
c) Significant changes in accounting policy during the year and that the same have been disclosed in the notes to the financial statements.
d) Instances of significant fraud of which they have become aware and the involvement therein, if any, of the management or an employee having a significant role in the Company's internal control system over financial reporting.
Place : FaridabadthDate : 28 May, 2014
(Jitender Kumar Garg)Managing Director
(Rajesh Singla)WTD & CFO
(Dr. Anil Jindal)Chairman
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
24
Management's Discussion & Analysis
The Indian Economy
The Indian economy's growth curve over the last few years resembles an inverted bell curve. From a steep 9% plus growth rate and seemingly unstoppable, it quickly changed tracks in the blink of an eye and fell below the 5% mark shocking everyone alike.
This transition from euphoria to a screeching slowdown took place in just a matter of 4 years. Several factors were at play, and it looked as if they joined hands with one another to make their impact rather hard-hitting. From the heady 9% growth rate in 2010, we are now hovering at about 4.8%.
So what led to such a slowdown so quickly? It was a mix of global and domestic factors, and the administrators' lack of ability to either prepare for them or help soften the landing.
At the global level, the growth has been rather tepid, marked by enough nervous signals. While the US economy showed some signs of early stability, it rocked the boat in global markets by tapering the money it was infusing into the American system, which found its way into countries such as India for investment purposes. Many of the European economies too were shaky, and China, the eternal growth engine was rumbling. All this led to poor sentiments and nervous bankers. This was also partly the reason why the capital inflow into India reversed and saw a dollar exodus and plunging stock indices. The Rupee as a currency weakened significantly, throwing the financial system into a mess. Expensive imports, rising fuel bills and attractive exports in the face of subdued demand did little to help.
On the domestic front too, governance was under pressure. Critical projects kept on awaiting clearances and developmental proposals were pushed into deep freeze. The result of this was catastrophic: potential investments did not come into the system, productivity did not rise, few new jobs were created and infrastructural development fell way behind requirements. This landed the entire economy in a marshy spot, marked by stagnation of sorts.
All eyes are now on the new government. To put things back on the track will need sound decisions backed with sound and timely executions. The good part is that thanks to the last 2-3 challenging years, significant corrections took place in the background, which means that the economy can be jumpstarted soon. Equally importantly, we as an economy are far more prepared for the fed tapering, and it will thus have a minimal impact now on our financial systems, capital markets and investments.
It is clear that to regain the growth momentum, strong focus is required on the fundamentals: infrastructural investments and development, education and healthcare. The captains of the country also need to reenergize the core sectors of the economy, especially the mining and manufacturing sectors that are likely to see a contraction of 1.9% and 0.2% respectively in FY 14.
If the new government is able to get on the right course, problems pertaining to political uncertainty and bureaucratic delays will start being addressed. This in turn will also effectively tackle the issues of weak consumer demand and high inflation and also trigger project clearances and subsequent investments that will have a cascading impact on the entire economy.
So while the last few quarters have been challenging on various fronts, there is enough evidence that the coming times will see a phase of high growth, investments, exports and demand generation coupled with greater infra development, lower inflation and currency volatility. It is important to realise that the fundamentals of the Indian economy are still good, and with factors such as low median age, large competent population, rising economic prosperity and migration to urban centres ensure that things from the long-term perspective are rather good.
The Indian Real Estate Industry
The overall tepid economy left no sector untouched, and as a result, the Real Estate Industry too witnessed a subdued FY 14. Factors such as the economic slowdown, rising input costs in construction, poor sentiments, high interest rates etc. exerted a downward pressure on the industry in general. According to a report by Cushman and Wakefield, investments in Indian Real Estate industry dropped by 65% in 2013, with investments in office space declining by 77%. As a result, real estate companies are seeing fewer takers for their projects, fewer new launches, lower investor participation and increasing pressures on revenues and profitability. Inventories in erstwhile brisk markets are building up. As per estimates, Mumbai has a build-up of 40 months of inventory, or about 2.5 lacs homes. Delhi NCR fares better though with about 15-21 months of inventory. Under normal circumstances, a good benchmark is to have about 8-10 months of inventory, and this sets the picture in place.
However, it will be best to view this as a passing phase. In country like India, which is densely populated, is seeing rapid urbanization mode and has strong growth fundamentals, the demand for residential and commercial spaces is bound to make a smart comeback.
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
25
However, the reality of the moment also is that the challenges posed by environmental factors are weighing down the industry. One core issue is the overall economic slowdown and limited increase in disposable incomes because of which people are not confident in going ahead with high-ticket deals such as real estate. Another reason for the weak consumer demand is the high interest rate regime that has made cost of loans expensive beyond the comfort levels for most buyers. Together, these two factors have been the biggest dampeners for the industry. Other factors that have been spoilers include high inflation levels, liquidity crunch and costly debt.
However, if this was not enough, the rising input costs have spoiled the party too. Over the last two years, input costs such as construction, labour and debt have increased by almost 40%, and this is a very tricky situation. Consider this: there is a slowdown of new launches, there is an inventory of unsold units in many pockets and the most logical move would be to reduce prices to spur demand. However, this is not possible because of the huge surge in the input costs over the last 2-3 years – consequently, most developers can't reduce the prices even if they want to.
The result of all this translates into low demand from end users because of high prices, subdued business confidence and significantly lower participation from the investor community. This explains the weak sales, low absorption rates and reduced new launches. While the demand may be subdued, residential real estate prices are certainly still at a high, though a fair amount of correction has been seen in the secondary markets.
This is strange for an industry where the shortage of housing units stands at about 26 million units. However, it is easy to understand why, since most of this is for the super affordable housing segment, which may not be an easy or viable business option for many developers.
How have these affected the real estate players in general? Well, because of all these factors, many players have witnessed falling unit sales, static revenues and EBITA margins. New launches have moderated and the sale of fresh residential units has seen a downward trend in a major portion of 2013-14.
However, the developers are doing their bit to make buying homes a more attractive proposition by introducing schemes such as flexible payment plans. They come in a host of configurations: the 15:75:10 schemes for instance allows people to book an apartment by paying just 15%, with the banks paying the 75% and the buyer eventually paying 10% near possession time. Here, the interest load is borne by the developer until possession and EMIs for the buyers start after possession. Similarly, on offer are Assured Rental schemes and Buyback options. Overall, this has offered the buyers a choice of payment options, and this has certainly helped to trigger additional sales in an otherwise dull market.
However, there are corridors of real estate, which are less leveraged in terms of pricing as on date, such as the Greater Faridabad region. Massive development, affordable residential and commercial prices, superb connectivity with Delhi, Gurgaon and Noida are factors that make it an attractive destination. Similar such corridors are looking promising today and buyers are looking at them with interest. Smart players who have exposure in such areas will surely fare better than the others.
Things are a bit challenging on the commercial property side of things as well. Just as the residential market has become a buyer's market, the commercial segment is an occupiers market. Slow economic growth has meant reduced hiring and slower expansions, leading to muted demand in this sector. The residential sector therefore, fares better than the commercial sector.
However, this is not to say that that there is no positive news in the industry.
In fact, there has been a good demand for properties in a near completion stage or those offered for possession – these were lapped up by buyers as they meant confirmed or immediate deliveries without any construction delays. Another interesting thing was the increasing attractiveness of Tier II and III cities, which offer lower land costs, high absorption rates and high disposable incomes. This will be particularly true for towns that are satellites to larger cities and metros.
Private equity has been looking at the residential property segment with high interest because they know that the long-term fundamentals are spectacular, and because this space allows easy and rewarding exit options. Many top fund houses have a good exposure in mid-segment housing space.
Also of interest is the recent move by SEBI to introduce REITs or Real Estate Investment Trusts, which will help small investors as well to participate in the real estate industry. This move will bring about greater fund flow into the system, benefitting the developers, investors as well as the buyers.
The best news is that the attractive industry fundamentals are intact. A surging urban population with rising incomes, double income households, nuclear families and a keen desire to have one's own housing at a relatively younger age and an economy that is set to touch higher growth rates – all these factors will lead to sustained demand for the housing segment. With greater connectivity, fast infrastructural development and siring prosperity, tier II and III cities will open up big, new markets for the industry. New segments such as theme based housing, service residencies, homes for the affluent senior citizens etc. will also create growth avenues.
Small wonder then that the real estate sector is tipped to post revenue of USD 180 billion by 2020, from the current approx. USD 75 billion. It therefore, is an exciting time to be in this space – especially for players who are diligent, have tightly run projects in the right areas and know what the needs of today's customers are.
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
26
Business Overview
It is a testimony to your Company's management, market understanding and consumer focus that it is fortunate to be reporting good operational progress in the realm of a challenging business environment. Almost all of its projects have progressed very well, recording either fast-paced construction or project completion or offers of possessions to the buyers. Following is a brief overview of the same.
Project No. of Flats Current Status Occupation Certificate
Possession Taken by Owners
Families Shifted
SRS Residency Sector-88, Greater Faridabad
1040 Possession handed over for 12 Towers 1 Tower under construction
Received for 12 Towers (1008 Flats)
835
(91 units retained by the Company)
450
SRS Royal Hills Sec-87, Greater Faridabad
1257 Possession handed over for 5 Towers. 7 Towers under construction
Received for 5 Tower (546 Flats)
211
(9 Units retained by the company)
2
SRS Pearl Floor Sec-87, Greater Faridabad
920 Possession handed over for 5 Towers 3 Towers under construction
Received for P1 to P5 (640 Flats)
483 150
SRS Pearl Floor Sec-88, Greater Faridabad
92 Under Construction
NA NA NA
SRS Pearl Heights Sec-87, Greater Faridabad
192 Under Construction
NA NA NA
SRS Royal Hills PH-2, Sector-87, Greater Faridabad
612 Under Construction
NA NA NA
SRS Pearl Sec-5, Palwal
394 Under Construction
NA NA NA
SRS Royal Hills, Sector-26, Rewari
293 Under Construction
NA NA NA
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
27
Construction is in full swing at all the projects. Work at SRS Nest Hotel & Resort too is coming along nicely. With a view to add significantly to the speed, quality and consistency of construction, special initiatives have been implemented for maximum mechanization. This includes 2 tower cranes, 2 concrete batching plants, 5 mini concrete batching plants and a field laboratory. This quality of planning and on-ground deployment will reflect amply in the way this project takes shape in the coming times.
All other projects are recording good progress too. The residencies in Palwal and Bhiwadi are witnessing active construction activity while Occupation Certificate has been received post part-completion of development work at the Company's plotted colony project at Kurukshetra – this covers 44 acres out of a total of 54 acres. SRS Tower has come up impressively, with many corporates ranging from BPOs to pharma to technology setting up offices in this landmark corporate junction.
All these developments spanning project development and completion, receipt of completion certificate, offers of possession and actual occupation is doing a world of good to brand SRS as well as to its customers. SRS today has built a solid reputation as a Company that is known for meeting commitments and making timely and & quality delivery – hence, it is a brand preferred by end-users and investors alike.
It is perhaps because of this very reason that the Company has a limited inventory across most of its projects, in sharp contrast to many other players in the market. This signifies the great trust it enjoys amongst buyers. It also points to the fact that while the markets may be sluggish, the Company has already captured the benefits of the previous peaks, and has in a great measure, managed to insulate itself against the low overall sentiment seen across the industry today.
Going forward, the Company intends to focus on quality construction, timely delivery and customer orientation to continue building SRS as a gold standard in the geographies it operates in, creating masses of happy customers in the process.
Human Resources
While real estate is all about grand structures and fine apartments, the real movers of the Company are not large cranes or excavators or concrete mixers, instead it is the thinking resource i.e. human capital. This single resource holds the power to multiply the power of every other tangible and intangible resource.
Hence, your Company treats HR with the due importance it deserves. Add to this the complex tasks and roles involved from construction of structures to sourcing of raw material to finalization of fitment supplies to attracting & managing customers to building a strong brand – this makes the recruitment and nurturing of quality talent a key objective for your Company. The fact that the value chain comprises architects and engineers on one extreme, and contractors and labourers on the other, makes your Company's HR functions a large and varied mandate, with huge responsibilities as the principal employer.
The fact that yours is Company of choice amongst job seekers is clear from the fact that during fiscal 2013-14, it received around 793 employment applications. Out of this, approximately 246 were interviewed and 32 job offers were made. Moreover, very large number of contractors has deployed their qualified engineering staff and skilled and unskilled manpower.
The Company's responsible HR professionals understand the challenge of this task very well, and have established strong systems for identification, recruitment and development of talent, and adherence to all rules, regulations and policies pertaining to responsibilities on this front. With this in place, the Company is happy to state that its employees work in an empowering environment, with matters pertaining to their comfort, health and security well taken care of.
Safety of such a precious resource is a must and hence your Company has invested in measures such as Health Insurance and Group Accidental policy to protect them from potential mishaps.39 employees and 58 dependents were covered under the Group Medical Insurance and Group Personal Accidental Insurance Policy, with tie-ups with good hospitals for a hassle free service.
Your Company has also migrated to a set of paperless and efficient HR processes for mobilization of leaves, attendance and performance management system. This was delivered through a comprehensive HR Portal that was introduced in to the system in FY 14.
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
28
Information Technology
Over the years, technology has become an important element and ingredient in the world of business, impacting enormously on business activities in every aspect. Technology is revolutionized the way companies conduct business nowadays. Present Trend of Usage of Internet on mobile devices (Smartphone & Tablets) leverage the potential for a great deal of business opportunities.
We have diversified businesses under the umbrella of SRS Group and seamlessly managed through effective I.T. Infrastructure and Industry Standard Application, We use array of Tailor made Application for varied business needs in diverse segments. It helps not only for business transaction but to manage, control and optimize business needs to optimum level.
Communication and Surveillance Tools contributes towards Security, Controlling and Monitoring of all aspect of Business. VLAN, VoIP and Surveillance Tools makes Virtual presence is reality at any location at any point of Time. Through Secure VPN all sites are interconnected to perform immaculately transaction of trade.
More than 100 Business servers are enforced to facilitate business at 60+ Locations in various field with enlightening speed. To fulfil the requirement of 1000+ Back Office Manpower Strength Data Centre is in place at SRS Tower and connected through 12 Radio Frequency Tower. All Infrastructure and Applications are managed by Agile Team of I.T. along with Technology Associates. Robust Security is the Top most priority in our organization. To achieve the same we use Top of the Lot Firewalls, best of Anti-Virus, redundancy and Authorization Matrix at each Level.
We believe in constant upgrade of Technology and Invest wisely to utilize the true potential of technology to provide stability to business. We use innovative approach to provide edge to business over competitors.
Internal Control Systems and their adequacy
The Company has an effective and reliable internal control system which is complimented by the Code of Business Conduct binding all its employees to achieve high standards in Corporate Governance. The internal control system is designed to ensure quality and reliability of underlying processes in achieving operational efficiency, reliability of financial data and safeguarding of assets.
The internal controls are designed to ensure the governance of the SRS Real Estate standards and processes in key control areas of sales, purchasing, materials management, human resources and authorization management.
The efficacy of internal checks and control systems are verified during internal audits and reviewed by the Audit Committee. The scope of internal audit is oriented towards mitigating or eliminating risks in business processes.
Cautionary Statements
Statements in this Management Discussion and Analysis Report describing Company's objectives, estimates, expectations or predictions may be 'forward looking statements' within the meaning of applicable laws and regulations. Actual Results might differ substantially or materially from those expressed or implied. Important factors that could influence the Company's operations include global and domestic financial conditions, changes in government regulations, tax laws, economic developments within the country and other factors such as litigation and industrial relations.
Place: FaridabadthDate: 7 July, 2014
(Jitender Kumar Garg)Managing Director
DIN: 00088125
For and on behalf of the Board
(Dr. Anil Jindal)Chairman
DIN : 00005585
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
29
Independent Auditor’s Report
To,The Members,SRS Real Infrastructure LimitedFaridabad
Report on the Financial Statements
We have audited the accompanying financial statements of SRS Real Infrastructure Limited (“the company”), which comprise the Balance Sheet as at March 31, 2014, and the Statement of Profit and Loss and the Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the Accounting Standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956
th(“the Act”) read with General Circular 15/2013 dated 13 September, 2013 of the Ministry of Corporate Affairs in respect of section 133 of the Companies Act, 2013. This responsibility includes the design, implementation and maintenance of internal controls relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due 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 Institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of the material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:
a) In the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2014;
b) In the case of the Statement of Profit and Loss, of the profit for the year ended on that date; and
c) In the case of the Cash Flow Statement, of the cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
(1) As required by the Companies (Auditor's Report) Order, 2003 (“the Order”) issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Act, we give in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order.
(2) As required by section 227(3) of the Act, we report that:
a) we have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;
b) in our opinion proper books of account as required by law have been kept by the Company so far as appears from our examination of those books;
c) the Balance Sheet, Statement of Profit and Loss and, Cash Flow Statement dealt with by this Report are in agreement with the books of account;
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
30
d) In our opinion, the Balance Sheet, Statement of Profit and Loss and, Cash Flow Statement comply with the Accounting Standards th referred to in sub-section (3C) of section 211 of the Companies Act, 1956 read with General Circular 15/2013 dated 13 September,
2013 of the Ministry of Corporate Affairs in respect of section 133 of the Companies Act, 2013;
e) on the basis of written representations received from the directors as on March 31,2014, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2014, from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956.
For S S Kothari Mehta & Co. Chartered Accountants Firm Reg. No. 000756N
Yogesh Gupta Partner Membership No.093214 Place : Faridabad Date : May 28, 2014
For Naresh Jai & Associates Chartered Accountants Firm Reg. No. 019082N
Naresh Goyal Partner Membership No.501487
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
31
Annexure To The Auditor's Report
(The Annexure referred to in paragraph (1) in “Report on Other Legal & Regulatory Requirements” of our report to the members of SRS Real stInfrastructure Limited on the accounts for the year ended 31 March 2014)
(i) (a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.
(b) As explained to us, the management has carried out physical verification of its fixed assets during the year. In our opinion the frequency of such verification is reasonable having regard to the size of the company and the nature of its fixed assets. No material discrepancies were noticed on such verification as compared to the books of account.
(c) Fixed assets disposed off during the year were not substantial and therefore, do not affect the going concern assumption.
(ii) (a) As explained to us, the inventory has been physically verified by the management at reasonable intervals. In our opinion, the frequency of verification is reasonable.
(b) The procedures of physical verification of inventory followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business.
(c) In our opinion & on the basis of our examination of the inventory records, the Company is maintaining proper records of inventory and no material discrepancies have been noticed between the physical stock and the book records.
(iii) (a) As per information and explanations given to us, the Company has granted loan to one company covered in the register maintained under section 301 of the Companies Act, 1956. The maximum amount involved during the year was Rs. 96,123,536 and the year-end balance of loan granted to such company was Rs. Nil.
(b) In our Opinion, the rate of interest and other terms and conditions on which such loan was given are not prima facie prejudicial to the interest of the company.
(c) During the year, amount of loan granted was repaid. Hence, the provisions of Clause 4(iii) (c) & (d) of the Order are not applicable to the company.
(d) The Company has taken loans from three Companies covered in the register maintained under section 301 of the Companies Act, 1956. The maximum amount involved during the year was Rs. 273,624,829 and the year-end balance of loan taken from such parties was Rs.150,787,821.
(e) In our Opinion, the rate of interest, and other terms and conditions on which such loan was taken are not prima facie prejudicial to the interest of the company.
(f) In respect of Loan taken, the principal amounts are repayable on demand and since such loans have not been demanded, in our opinion, payment of the principal amount and interest is regular.
(iv) In our opinion and according to the information and explanations given to us, having regard to the explanations that it is not feasible to obtain comparable alternative quotations for purchase of land for sale or development, there is an adequate internal control system commensurate with the size of the company and the nature of its business for the purchase of fixed assets and for the sale of goods and services. However, the internal control system for purchases of inventory needs to be strengthened.
(v) (a) According to the information and explanations given to us, we are of the opinion that the particulars of all contracts or arrangements that need to be entered into the register maintained 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, the transactions made in pursuance of contracts or arrangements entered in the register maintained under section 301 of the Companies Act, 1956 and exceeding the value of rupees five lakhs in respect of any party during the year have been made at prices which are reasonable having regard to prevailing market prices at the relevant time read together with our comments in para (iv) above.
(vi) In our opinion, the Company has complied with the directives issued by the Reserve Bank of India and the provisions of Sections 58A, 58AA and other relevant provisions of the Companies Act, 1956 and the rules framed there under.
(vii) According to the information and explanations given to us, the company has an internal audit system, the scope and coverage of which, in our opinion, requires to be further enhanced to commensurate with the size and nature of its business and activities.
(viii) We have broadly reviewed the books of account maintained by the company pursuant to the rules made by the Central Government for the maintenance of cost records under clause (d) of sub-section (1) of Section 209 of the act in respect of company's products and are of the opinion that, prima facie, the prescribed accounts and records have been made and maintained. However, we have not made detailed review of the cost records with a view to determine whether they are accurate or complete.
(ix) (a) The Company has been generally regular in depositing with appropriate authorities undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees' State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and any other material statutory dues applicable to it except slight delay in few cases.
(b) According to information and explanations given to us, no undisputed amounts payable in respect of Income Tax, Sales Tax, Wealth Tax, st Service Tax, Custom Duty, Excise Duty and Cess were in arrears as at 31 March 2014 for a period of more than six months from the date they
became payable except Advance tax of Rs. 4,166,080.
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
32
(c) According to the information and explanations given to us, there are no dues of Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom duty, Excise duty and Cess, which have not been deposited on account of any dispute except in the following cases:
(x) The company has no accumulated losses at the end of the financial year. Further, the company has not incurred cash losses during the current financial year and the immediately preceding financial year.
(xi) In our opinion and according to the information & explanations given to us, the company has not defaulted in repayment of dues to bankers and financial institutions. The Company did not have any outstanding debentures during the year.
(xii) In our opinion and according to the information & explanations given to us, the company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities.
(xiii) In our opinion the company is not a chit fund or a nidhi / mutual benefit fund / society. Hence, the provisions of Clause 4(xiii) of the Order are not applicable to the company.
(xiv) In our opinion, the company is not dealing in or trading in shares, securities, debentures and other investments. Accordingly, the provisions of clause 4(xiv) of the Order are not applicable to the Company.
(xv) As per information and explanations given to us, the terms and conditions on which the company has given corporate guarantee amounting to Rs. 3,764,900,000 for loans taken by 2 companies from banks or financial institutions are not, prima facie, prejudicial to the interest of the company.
(xvi) On the basis of records made available and according to information and explanations given to us, the company has applied its term loans for the purposes for which the loans were obtained.
(xvii) According to the information and explanations given to us and on an overall examination of the Balance Sheet of the company, we report that no funds raised on short-term basis have been used for long-term investment.
(xviii) According to the information and explanation given to us, company has not made preferential allotment to any party covered in the register maintained under section 301 of the Companies Act, 1956 during the year. Hence, clause 4 (xviii) of the Order is not applicable to the Company.
(xix) According to the information and explanations given to us, the Company has not issued any debenture. Therefore, the provisions of clause 4(xix) of the Order are not applicable to the Company.
(xx) The company has not raised any money by way of public issue. Accordingly, the provisions of clause 4(xx) of the Order are not applicable to the Company.
(xxi) Based upon the audit procedure performed for the purpose of reporting the true and fair view and on the basis of the information and explanations given by the management, we report that no fraud on or by the company has been noticed or reported during the course of our audit.
Name of the Statute
Nature of Dues
Amount (Rs.)
Period for which the amount relates
Forum where dispute is pending
Sales tax Act Sales Tax 714,308,757 2010-11 High Court of Punjab &
Haryana
For Naresh Jai & Associates Chartered Accountants Firm Reg. No.
For S S Kothari Mehta & Co. Chartered Accountants Firm Reg. No. 000756N Yogesh Gupta Partner Membership No.093214 Place : Faridabad Date : May 28, 2014
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
33
Naresh Goyal
Partner
Membership No.501487
EQUITY AND LIABILITIESShareholder's funds
Share capital 3 201,016,000 201,016,000 Reserves and surplus 4 1,998,307,961 1,958,381,140
2,199,323,961 2,159,397,140
Non-current liabilitiesLong-term borrowings 5 585,481,084 570,751,284
Deferred tax liability (net) 6 23,234,838 8,535,853
Other long term liabilities 7 19,597,696 73,160,310
Long-term provisions 8 1,479,482 1,095,186
629,793,100 653,542,633 Current liabilities
Short-term borrowings 9 1,177,360,012 1,077,349,239
Trade payables 10 318,363,537 293,332,446
Other current liabilities 11 984,589,129 1,358,798,146 Short-term provisions 12 9,787,719 50,736,573
2,490,100,397 2,780,216,404
Total 5,319,217,458 5,593,156,177
ASSETS
Non-current assets
Fixed assets
Tangible assets 13.1 437,981,579 374,760,475
Intangible assets 13.313.2
5,767,516 6,417,144
Capital work in progress 269,825,173 223,894,466
713,574,268 605,072,085 Non-current investments 14 1,659,950,890 1,450,951,603
Long-term loans and advances 15 18,534,382 15,564,410
Other non-current assets 16 38,524,924 52,118,976
2,430,584,464 2,123,707,074
Current assets
Inventories 17 1,052,705,636 1,244,777,013
Trade receivables 18 1,346,343,688 1,571,212,229
Cash and bank balances 19 140,683,510 98,147,666
Short-term loans and advances 20 239,906,473 485,908,038
Other current assets 21
2
108,993,687 69,404,157
2,888,632,994 3,469,449,103
Total 5,319,217,458 5,593,156,177
PARTICULARS Note No. As at
March 31,2014As at
March 31,2013
Balance sheet as at March 31, 2014 Amount in `
Significant Accounting Policies
The accompanying notes 1 to 45 form an integral part of the financial statements
As per our report of even date attached
For S S Kothari Mehta & Co.Chartered AccountantsFirm Reg. No. 000756N
(Yogesh Gupta)PartnerM.No. 093214
Place : FaridabadDate : May 28, 2014 (Shweta Marwah)
Company SecretaryM.No. 18730
For Naresh Jai & AssociatesChartered AccountantsFirm Reg. No. 019082N
(Naresh Goyal)PartnerM.No. 501487
For and on behalf of the board of directors
(Jitender Kumar Garg)Managing Director
DIN : 00088125
(Rajesh Singla)WTD & CFO
DIN : 00009745
(Dr. Anil Jindal)Chairman
DIN : 00005585
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
34
2
PARTICULARS Note No. For the year ended
March 31,2014For the year ended
March 31,2013
Statement of profit and loss for the year ended March 31, 2014 Amount in `
Significant Accounting Policies
The accompanying notes 1 to 45 form an integral part of the financial statements
REVENUE
Net revenue from operations
Gross revenue from operations
22 8,366,747,801
8,368,963,852
8,495,647,522
8,498,995,956
Other income
Less: Excise Duty
23 27,294,033
2,216,051
17,120,877
3,348,434
Total Revenue 8,394,041,834 8,512,768,399
EXPENSES
Cost of materials consumed 24 62,738,512 98,150,428
Cost of sale of developed properties 25 560,139,623 1,017,460,609
Purchase of stock-in-trade 26 7,555,370,899 7,129,117,350
Change in inventory 27 (244,416,060) (57,887,683)
Employee benefits expense 28 19,505,941 15,302,398
Financial expenses 29 226,576,978 134,194,391
Depreciation and amortisation expenses 30 16,557,686 9,436,650
Other expenses 31 138,723,346 84,998,085
8,335,196,925
8,430,772,228
Profit before tax 58,844,909
81,996,171
Tax expense :
Current tax 11,862,599
27,194,423
Deferred tax 14,698,984
3,334,118
MAT credit entitlement (5,789,559)
-
Earlier year tax (1,853,936)
11,120
Total tax expense 18,918,088
30,539,661
Profit for the year 39,926,821
51,456,510
Earning per share
Face value per equity share (in Rs.) 1.00
1.00
Basic & diluted (in Rs.) 32 0.20
0.26
As per our report of even date attached
For S S Kothari Mehta & Co.Chartered AccountantsFirm Reg. No. 000756N
(Yogesh Gupta)PartnerM.No. 093214
Place : FaridabadDate : May 28, 2014 (Shweta Marwah)
Company SecretaryM.No. 18730
For Naresh Jai & AssociatesChartered AccountantsFirm Reg. No. 019082N
(Naresh Goyal)PartnerM.No. 501487
For and on behalf of the board of directors
(Jitender Kumar Garg)Managing Director
DIN : 00088125
(Rajesh Singla)WTD & CFO
DIN : 00009745
(Dr. Anil Jindal)Chairman
DIN : 00005585
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
35
PARTICULARSFor the year ended
March 31,2014For the year ended
March 31,2013
Cash Flow Statement for the year ended March 31,2014
Amount in `
A Cash flow from operating activitiesProfit before taxAdjustments for:
Depreciation and amortizationFixed assets written offBad debtsProvision for doubtful debtsLoss in joint ventureLoss / (profit) on sale of fixed assetsInterest expenseInterest income
Operating profit before working capital change
Adjustments for:(Increase)/ decrease in trade receivables(Increase)/ decrease in short-term loans and advances(Increase)/ decrease in long-term loans and advances(Increase)/ decrease in other current assets(Increase)/ decrease in other non-current assets(Increase)/ decrease in inventories(Decrease)/ increase in trade payables(Decrease)/ increase in long term liabilities(Decrease)/ increase in other long term liabilities(Decrease)/ increase in short term liabilities(Decrease)/ increase in other current liabilities
Cash (used in)/from operations
Direct taxes paid
Net cash flow (used in)/from operating activities
B Cash flow from investing activities(Purchase) of fixed assetsProceeds from sale of fixed assets(Purchase) of investment in subsidiary(Purchase) of investment in associateInterest received
Net cash flow from/ (used in) investing activities
C Cash flow from financing activities
Proceeds from long term borrowingsRepayments of long term borrowingsProceed from short term borrowing (net)Dividend and dividend tax paid thereonInterest paid
Net cash flow from/ (used in) financing activities
Net increase/ (decrease) in cash and cash equivalent (A+B+C)
Cash and cash equivalent at the beginning of the yearCash and cash equivalent at the end of the year
Net increase/ (decrease) in cash and cash equivalents
58,844,909
16,762,271 -
296,146 (884,433)
- 1,907,672
328,633,540 (21,811,995)
383,748,110
225,456,831 246,001,565 (2,969,972)
(65,464,361) 13,594,052
270,912,091 25,031,091
384,296 (53,562,614)
5,778,256 (540,052,267)
508,857,078
(27,428,347)
481,428,731
(257,515,220) 51,502,381
(150,626,097) (58,373,190)
15,521,526
(399,490,600)
236,684,805 (50,128,757)
100,010,772
(23,517,867) (334,616,540)
(71,567,587)
10,370,544
63,147,810 73,518,354
10,370,544
81,996,171
9,436,650 1,786,730
249,980 6,000,000 4,334,372
601,888 252,935,302 (15,586,843)
341,754,250
(360,663,281) (194,024,279)
71,700,200 (48,597,411) (25,206,476) 550,303,008 24,687,390
186,351 4,160,310
(17,446,919) (94,498,014)
252,355,129
(39,083,537)
213,271,592
(467,080,409) 1,090,002
(76,500,001) -
21,631,586
(520,858,822)
264,706,187 (29,525,879)
378,292,850
(23,362,582) (247,161,486)
342,949,090
35,361,860
27,785,950 63,147,810
35,361,860
As per our report of even date attached
For S S Kothari Mehta & Co.Chartered AccountantsFirm Reg. No. 000756N
(Yogesh Gupta)PartnerM.No. 093214
Place : FaridabadDate : May 28, 2014 (Shweta Marwah)
Company SecretaryM.No. 18730
For Naresh Jai & AssociatesChartered AccountantsFirm Reg. No. 019082N
(Naresh Goyal)PartnerM.No. 501487
For and on behalf of the board of directors
(Jitender Kumar Garg)Managing Director
DIN : 00088125
(Rajesh Singla)WTD & CFO
DIN : 00009745
(Dr. Anil Jindal)Chairman
DIN : 00005585
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
36
Summary of significant accounting policies and other explanatory notes
1 Overview of the Company
SRS Real Infrastructure Limited (‘SRIL’ or the ‘Company’), was originally incorporated as Private Limited Company in the name & style of “Manu Leasing Private Limited” with the Registrar of Companies, NCT of Delhi & Haryana vide Certificate of Incorporation dated June 26, 1990. Subsequently, the Company was converted into Limited Company vide fresh Certificate of Incorporation dated December 30, 1994. Further the name of the Company was changed to “Manu Finlease Limited” pursuant to a fresh Certificate of Incorporation dated March 9, 1995 and again changed to “Manu Leasing Limited” on November 19, 1997. Subsequently, the name of the Company was changed to “SRS Real Infrastructure Limited” vide fresh Certificate of Incorporation dated March 28, 2007. The Company operates as a real estate developer primarily covering residential and commercial projects. The operations of the Company span all aspects of real estate development, from the identification and acquisition of land, to the planning, execution and marketing of the projects. The Company is also into trading of building material and manufacturing of RMC. The Company’s registered office is situated at SRS Multiplex, Top Floor, City Centre, Sector-12, Faridabad-121007.
2 Significant accounting policies
2.1 Basis of accounting
The financial statements are prepared under historical cost convention, on accrual basis, in accordance with the generally accepted accounting principles in India and to comply with the Accounting Standards prescribed in the Companies (Accounting Standards) Rules, 2006 issued by the Central Government in exercise of the power conferred under sub-section (I) (a) of section 642 of the Companies Act, 1956 (the ‘‘Act’’), the relevant provisions of the Act and other pronouncements of Institute of Chartered Accountants of India (ICAI) to the extent applicable. All assets and liabilities have been classified as current or non-current, as per the operating cycle, wherever applicable, of the Company or other criteria, as per the guidance set out in the Revised Schedule VI to the Companies Act, 1956.
2.2 Use of estimates
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities on the date of the financial statements and the results of operations during the reporting periods. Although these estimates are based upon management’s knowledge of current events and actions, actual results could differ from those estimates and revisions, if any, are recognised in the current and future periods.
2.3 Revenue recognition
a. Revenue from sale of land and plots (held for resale) is recognised in the financial year in which the transfer is made by written agreement to sell/registration of sale deed or otherwise in favour of parties when the significant risk and reward of the ownership are transferred and there is a certainty of realisation of the consideration.
b. Revenue from sale of constructed properties is recognised on the “Percentage of Completion method” of accounting. Sale consideration receivable as per the allotment letters/agreements to sell entered into for constructed properties is recognised as revenue on the basis of percentage of actual project costs incurred thereon to total estimated project cost, subject to such actual cost incurred being 25 per cent or more of the total estimated project cost. Project cost includes cost of land (including development rights), government charges, construction costs and development/ construction materials of such properties, estimated internal development charges, external development cost. The estimates of the saleable area and costs are reviewed periodically by the management and any effect of changes in estimates is recognised in the year such changes are determined. However, when the total project cost is estimated to exceed total revenues from the project, the loss is recognised immediately.
With effect from April 01, 2012 in accordance with the Revised Guidance Note issued by Institute of Chartered Accountants of India (“ICAI”) on “Accounting for Real Estate transactions (Revised 2012)”, the Company revised its accounting policy of revenue recognition for all projects commencing on or after April 01, 2012 or project where the revenue is recognised for the first time on or after the above date. As per this guidance note, the revenue have been recognised on percentage of completion method provided all of the following conditions are met at the reporting date.
i. atleast 25% of estimated construction and development costs (excluding land cost) has been incurred,
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)
iii. atleast 10% of the total revenue as per agreement to sell are realised in respect of these agreements
iv. all critical approvals necessary for commencement of the project have been obtained.
c. Revenue from sale of traded and manufactured goods is recognised upon transfer of significant risks and rewards incident to ownership and when no significant uncertainty exists regarding realisation of the sale consideration. Sales are recorded net of sales returns, rebates, trade discounts and price differences and are inclusive of excise duty.
d. Interest income, other than interest recovered from the customers, is accounted for on time proportion basis taking into consideration the amount outstanding and rate applicable
e. Dividend Income on investment is accounted for when the right to receive the payment is established.
f. Revenue from rental contracts is recognised on pro rata basis over the period of contract as and when services are rendered.
g. Interest on delayed payments by customers against dues is taken into account on acceptance or realisation owing to practical difficulties and uncertainties involved.
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
37
2.4 Unbilled receivables
Unbilled receivables represent revenue recognised based on ‘Percentage of Completion Method’ as per policy 2.3 (b) which are not due from customers as per the payment plan agreed with the customers.
2.5 Fixed assets Tangible assets
Fixed assets are stated at historical cost less accumulated depreciation and impairment losses, if any. Cost comprises the cost of acquisition/purchase price inclusive of duties, taxes, incidental expenses, erection/commissioning expenses, interest etc. upto the date the asset is ready for its intended use. Credit of duty, if availed, is adjusted in the acquisition cost of the respective fixed assets.
Fixed asset under construction is carried at cost, comprising direct cost, related indirect expenses and interest on borrowings to the extent attributed to them.
Intangible assets
Intangible assets are recognised as per the criteria specified in Accounting Standard -26 “Intangible Assets” and are stated at the consideration paid for acquisition.
2.6 Depreciation/ amortisation
Depreciation on fixed assets is applied on straight-line basis as per the rates and manner specified in Schedule XIV to the Companies Act, 1956 on pro-rata basis. Depreciation on fixed assets costing upto Rs.5,000/- is provided @100% over a period of one year.
Intangible assets are amortised over the useful life of the assets or ten years, whichever is earlier.
Depreciation on leasehold improvements is charged over the period of lease or estimated useful life, whichever is lower.
2.7 Borrowing cost
Borrowing costs that are directly attributable to the acquisition or construction of qualifying assets are considered as part of the cost of assets/ projects. Qualifying Asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are treated as period cost and charged to the statement of profit and loss in the year in which incurred.
2.8 Impairment
The Company assesses at each balance sheet date whether there is any indication that an asset may be impaired. If any such indication exists, the Company estimates the recoverable amount of the asset. If such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount and the reduction is treated as an impairment loss and is recognised in the statement of profit and loss. If at the balance sheet date there is an indication that a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount subject to a maximum of depreciated historical cost and is accordingly reversed in the Statement of Profit and Loss.
2.9 Investments
Investments are classified as current or non current, based on management's intention at the time of purchase. Investments that are readily realisable and intended to be held for not more than a year are classified as current investments. All other investments are classified as non current investments.
Trade investments are the investments made for or to enhance the Company's business interests.
Current investments are stated at lower of cost and fair value determined on an individual investment basis. Non Current investments are stated at cost and provision for diminution in their value, other than temporary, is made in the financial statements.
2.10 Inventory
Inventories comprise of projects in progress, developed properties, land held for resale, raw material and finished goods held for resale and are valued as under:
a. Projects in progress are valued at cost/ estimated cost or net realisable value, whichever is lower. Costs include land acquisition cost, estimated internal development costs, government charges towards conversion of land use/ licenses including external development charges, interest on project specific loans in accordance with policy 2.7 on borrowing costs and other related government charges and cost of development/ construction materials.
b. Developed properties includes the cost of land, estimated internal development costs, government charges towards conversion of land use/ licenses including external development charges, other related government charges, construction costs, development/ construction materials, interest on project specific loans in accordance with policy 2.7 on borrowing costs and are valued at cost/estimated cost or net realisable value, whichever is less.
c. Land and plots held for resale is valued at cost or net realisable value, whichever is lower. Cost is determined on the basis of FIFO method. Cost includes purchase cost and other incidental expenses.
d. Raw materials and finished goods held for resale are valued at cost or net realisable value, whichever is lower. Cost is determined on the basis of FIFO method. Cost includes purchase cost and expenses to bring it to current location.
"Net realisable value is the estimated selling price in the ordinary course of business, less estimated cost to affect the sale.
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
38
Provision for obsolescence and slow moving inventory is made based on management's best estimates of net realisable value of such inventories."
2.11 Taxations Current Tax:
Provision for Taxation is ascertained on the basis of assessable profit computed in accordance with the provisions of Income Tax Act, 1961.
Minimum Alternate Tax (MAT) Credit:
Minimum Alternate Tax credit is recognized, as an asset only when and to the extent there is convincing evidence that the Company will pay normal income tax during the specified period. In the year in which the MAT credit becomes eligible to be recognized as an asset in accordance with the recommendations contained in guidance note issued by the Institute of Chartered Accountants of India, the said asset is created by way of a credit to the Profit and Loss Account and shown as MAT Credit Entitlement under Loans & Advances. The Company reviews the same at each balance sheet date and writes down the carrying amount of MAT Credit Entitlement to the extent there is no longer convincing evidence to the effect that Company will pay normal Income Tax during the specified period.
Deferred Tax:
Deferred Tax is recognized, subject to the consideration of prudence, as the tax effect of timing difference between the taxable income & accounting income computed for the current accounting year and reversal of earlier years’ timing difference.
Deferred Tax Assets are recognized and carried forward to the extent that there is a reasonable certainty, except arising from unabsorbed depreciation and carry forward losses, which are recognized to the extent that there is virtual certainty, that sufficient future taxable income will be available against which such deferred tax assets can be realized.
2.12 Employee benefits
Expenses and liabilities in respect of employee benefits are recorded in accordance with Accounting Standard 15 Employee Benefits (Revised 2005).
a) Provident fund
The Company makes contribution to statutory provident fund in accordance with Employees’ Provident Funds and (Miscellaneous Provisions) Act, 1952. The plan is a defined contribution plan and contribution paid or payable is recognised as an expense in the period in which services are rendered by the employee.
b) Gratuity
Gratuity is a post employment benefit and is in the nature of a defined benefit plan. The liability recognised in the balance sheet in respect of gratuity is the present value of the defined benefit obligation as at the balance sheet date, together with adjustments for unrecognised actuarial gains or losses and past service costs. The defined benefit obligation is calculated annually by an independent actuary using the projected unit credit method.
Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to statement of profit and loss in the year to which such gains or losses relate.
c) Compensated absences
Liability in respect of compensated absences becoming due or expected to be availed within one year from the balance sheet date is recognised on the basis of undiscounted value of estimated amount required to be paid or estimated value of benefit expected to be availed by the employees. Liability in respect of compensated absences becoming due or expected to be availed more than one year after the balance sheet date is estimated on the basis of an actuarial valuation performed by an independent actuary using the projected unit credit method.
Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to the statement of profit and loss in the year to which such gains or losses relate.
2.13 Leases
Operating lease
Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased assets, are classified as ‘Operating Leases’. Lease rentals in respect of assets taken under operating leases are charged to the statement of profit and loss on a straight line basis over the term of lease.
2.14 Cash flow statement
Cash flows are reported using the indirect method, whereby a profit before tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, financing and investing activities of the Company are segregated.
2.15 Earning per share
Earning 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.
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
39
For the purpose of calculating diluted earning per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.
2.16 Segement reporting
Identification of segment
The Company’s operating businesses are organized and managed separately according to the nature of products manufactured and services provided, with each segment representing a strategic business unit that offers different products. The analysis of geographical segments is based on the areas in which major operating divisions of the Company operate.
Inter segment transfer
The Company accounts for inter segment sales and transfers as if the sales or transfers were to third parties at current market prices.
Allocation of common costs
Common allocable costs are allocated to each segment on reasonable basis
Unallocated items
Include general corporate income and expense items which are not allocable to any business segment.
Segment policies
The company prepares its segment information in conformity with the accounting policies adopted for preparing and presenting the financial statements of the company as a whole.
2.17 Provisions and contingencies
The Company makes a provision when there is a present obligation as a result of a past event where the outflow of economic resources is probable and a reliable estimate of the amount of the obligation can be made.
A disclosure is made for a contingent liability when there is a :
a. Possible obligation, the existence of which will be confirmed by the occurrence/non-occurrence of one or more uncertain events, not fully with in the control of the Company; or
b. Present obligation, where it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation; or
c. Present obligation, where a reliable estimate cannot be made.
2.18 Accounting for joint ventures
Jointly controlled entities: The Company’s investment in jointly controlled entities is reflected as investment and account for in accordance with the Company’s accounting policy of investments. (See Note No. 2.9 above)
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
40
250,000,000
250,000,000
201,016,000
201,016,000
PARTICULARS
PARTICULARS
Name of Shareholder
As at March 31,2014
March 31, 2014Number Rs.
March 31, 2014Number of Shares Percentage
Holding
As at March 31,2013
March 31, 2013Number Rs.
March 31, 2013Number of Shares Percentage
Holding
3 Share Capital Amount in `
Authorised
25,00,00,000 (previous year 25,00,00,000) equity shares of Re.1 each
Issued, subscribed and paidup
20,10,16,000 (previous year 20,10,16,000) equity shares of Re.1 each, fully paid
Total
250,000,000
250,000,000
201,016,000
201,016,000
3.1 Reconciliation of the equity shares outstanding at the beginning and at the end of the year
Equity shares outstanding at the beginning of the year
Equity shares issued during the year
Equity shares bought back during the year
Equity shares outstanding at the end of the year
201,016,000 201,016,000
- -
- -
201,016,000 201,016,000
201,016,000 201,016,000
- -
- -
201,016,000 201,016,000
3.2 Terms and rights attached to equity shares
The Company has one class of equity shares having par value of Re. 1 each. Each shareholder is eligible for one vote per share held. The Company declares and pays dividend in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of shareholders in the ensuing annual general meeting
During the year ended March 31, 2014, the amount of dividend per share recognised as distribution to equity holders was Rs. NIL (previous year Re. 0.10). The total dividend appropriation for the year ended March 31, 2014 amounts to Rs. NIL (previous year Rs. 20,101,600) excluding dividend distribution tax of Rs. NIL (previous year Rs. 3,416,267)
In the event of liquidation of the Company, the holder of equity shares will be entitled to receive any of the remaining assets of the Company, after distribution of all preferential amounts, if any. The distribution will be in proportion to the number of equity shares held by the shareholders.
3.3 Shareholders holding more than 5% of equity share capital
3.4 The Company has not issued bonus shares, equity shares issued for considerations other than cash and also no shares has been bought back during the period of five years immediately preceding the reporting period.
BTL Holding Company Limited* #(formerly known as BTL Investments & Securities Limited )
Akriti Global Traders Limited (formerly known as Akriti Realtech Ltd.)
SRS Holdings India Limited *(formerly known as BTL Industries Limited)
117,468,062 58.44% 34,790,904 17.31%
19,898,318 9.90% 19,496,092 9.70%
- 0.00% 79,994,158 39.79%
* During the year, SRS Holdings India Limited, promoter company of the company, has been merged with another promoter company namely BTL Holding Company Limited (Formerly known as BTL Investments & Securities Limited) vide Hon'ble High court order dated 18.07.2013. Hence, during the year the company has become subsidiary of BTL Holding Company Limited.
# 1,35,00,000 (6.72%) equity of SRS Holdings India Limited has been transferred to BTL Holding Company Limited on 22.04.2014, as the same were pledged.
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
41
PARTICULARSAs at
March 31,2014As at
March 31,2013
4 Reserves and surplus Amount in `
Amount in `
1,760,000,000
-
1,760,000,000
12,214,240
-
12,214,240
186,166,900
39,926,821
226,093,721
-
-
-
226,093,721
1,998,307,961
1,760,000,000
-
1,760,000,000
10,927,827
1,286,413
12,214,240
159,514,670
51,456,510
210,971,180
20,101,600
3,416,267
1,286,413
186,166,900
1,958,381,140
Securities premium account
Opening balance
Add: Additions/(deletions) during the year
Closing balance
General reserve
Opening balance
Add: Additions during the year
Closing balance
Surplus in the statement of profit and loss
Opening balance
Add:- Transfer from statement of profit and loss
Amount available for appropriation
Appropriations
Proposed dividend
Dividend distribution tax
Tranfer to general reserve
Closing balance
Total
5 Long term borrowings
Secured loan *
Term loans
From banks
From financial institutions
Unsecured loan
Deferred credit payment
Public deposit
Total
* refer note no. 5.1 for other details of borrowings
445,456,234
1,339,260
446,795,494
-
138,685,590
138,685,590
585,481,084
473,372,002
-
473,372,002
3,883,185
93,496,097
97,379,282
570,751,284
PARTICULARSAs at
March 31,2014As at
March 31,2013
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
42
ParticularsAs at
March 31, 2014As at
March 31, 2013Particulars of security / guarantees // default
Term Loan from Bank
Syndicate Bank
Balance Outstanding - 38,996,306
Current Maturity - 38,996,306
Non-Current Maturity - -
CBI - Term Loan
Balance Outstanding 201,385,922 239,035,711
Current Maturity 36,000,000 36,000,000
Non-Current Maturity 165,385,922 203,035,711
IOB- Term Loan
Balance Outstanding 216,153,094 149,100,225
Current Maturity 112,500,000 -
Non-Current Maturity 103,653,094 149,100,225
Canara Bank- Term Loan
Balance Outstanding 277,730,186 113,599,078
Current Maturity Non-Current Maturity
105,000,000172,730,186
- 113,599,078
Terms of Repayment
PRIMARY SECURITY
Secured against land measuring 64.71 Acres in name of thecompany and M/s. Premier Infrabuild Private Limited.Hypothecation of all the existing and proposed fixed andcurrent assets of the project.
Personal guarantee of directors and corporate guarantee ofM/s. Premier Infrabuild Private Limited.
Applicable rate of interest is Base Rate+6% P.A. subject to change from time to time.
2 Equal Half-yearly installments of Rs. 31,200,000 each commencing from June 2013.
PRIMARY SECURITY
PRIMARY SECURITY
PRIMARY SECURITY
1st charge on moveable and immovable assets of company pertaining to IT Park ( Project specific assets ) viz EM of land and building at khasra no:-44//22/2.23.24/1 Village Mewla Maharajpur , 14/5 , Delhi Mathura Road Faridabad standing in the name of M/s SRS Automotive Components Private Limited (Formerly known as SRS I-Tech Private Limited), hypothecation of plant & machineries and other fixed assets of the project .
1st charge on a Trust & Retention account /Escrow account . First charge on all the movable assets (including receivables ) of the project .
1. 2011-12 - quarterly installments of Rs. 3,000,000 each
2. 2012-13 - quarterly installments of Rs. 6,000,000 each
3. 2013-14 - quarterly installments of Rs. 7,500,000 each
4. 2014-15 and 2015-16 - quarterly installments of Rs. 9,000,000 each
5. 2016-17 - quarterly installments of Rs. 12,000,000 each
6. 2017-18 - quarterly installments of Rs. 13,500,000 each
7. 2018-19 - installment of 15,000,000
4 equal quarterly installments of Rs. 112,500,000 commencing from March, 2015.
EM of land and building of IT PARK at khasra no.44//22/2.23,24/1 Village Mewla Maharajpur , 14/5 Delhi Mathura Road , Faridabad standing in the name of M/s SRS Automotive Components Private Limited. Formerly known as SRS I-Tech Private Limited. , hypothecation of plant & machineries and other fixed assets of the project Value :- Rs. 55.63 crore as on 31st March 2011.
Personal guarantee of directors and corporate guarantee of M/s. SRS Finance Limited and SRS Automotive Components Private Limited. (Formerly known as SRS I-Tech Private Limited.)
Applicable rate of interest is Base Rate+4.5% P.A. subject to change from time to time.
COLLATERAL SECURITY
1. Mortgage of project land measuring 6.643 acre situated at revenue estate of Village Padniawas, Rewari Sector 26,Haryana valued at Rs.23.77 crore(FSV) as per valuation report dated 18.01.2012 and proposed construction thereon with estimated cost of Rs. 63.30 crores.
2. Hypothecation of moveable fixed assets and current assets, including receivables of the project, tangible and intangible assets, cash and investment created as part of the project, through an escrow account.
3. A first charge on all monies lying in escrow account into which all the investment in the project and all project revenue and insurance proceeds are to be deposited.
Personal guarantee of directors.
Applicable rate of interest is Base Rate+4% P.A. subject to change from time to time.
EMT of land measuring 44 Kanal and 3 Marla i.e. 5.518 acres situated at Araji Khewat No. 80/86, Khaton No.96, Mustil N0.25,Kila No.3(7-13), 4(8-0), Kita 2,Rakba 15 Kanal 13 Marla, falling in Vaka Mauza Allhapura,Tehsil Palwal, Distt Palwal, Haryana and Araji Khewat No.80/86, Khatono N0.96, Mustil NO. 25,Kila NO.5/1(6-7),Kita 4, Rakba 28 kanal 10 Marla falling in Vaka Mauza Allhapur, Tehsil Palwal, Distt Palwal, Haryana valued Rs. 3092 lacs and construction thereon in the name of M/s SRS Real Infrastructure Limited.
Personal guarantee of directors.
Applicable rate of interest is Base Rate+3.50% P.A. subject to change from time to time.
4 equal quarterly installments of Rs. 100,500,000 commencing from last quarter of financial year 2014-15.
5.1 The requisite particulars in respect of secured borrowings are as under Amount in `
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
43
ParticularsAs at
March 31, 2014As at
March 31, 2014Particulars of security / guarantees // default Terms of Repayment
PARTICULARSAs at
March 31,2014As at
March 31,2013
Amount in `
Deferred tax liability arising on account of:
Depreciation
Total deferred tax liability (A)
Deferred tax asset arising on account of :
Provision for employee benefits
Provision for doubtful debts
Provision for bonus
Total deferred tax asset (B)
Deferred tax liability (Net) (A-B)
25,486,191
25,486,191
500,136
1,704,532
46,685
2,251,353
23,234,838
10,880,308
10,880,308
379,119
1,946,700
18,636
2,344,455
8,535,853
PARTICULARSAs at
March 31,2014As at
March 31,2013
7 Other long term liabilities Amount in `
Security deposit
Total
19,597,696
19,597,696
73,160,310
73,160,310
PARTICULARSAs at
March 31,2014As at
March 31,2013
8 Long-term provisions Amount in `
Provision for employee benefits*
Total
1,479,482
1,479,482
1,095,186
1,095,186
*Refer note no. 36
Amount in `
Summary
Balance Outstanding
Current Maturity
Non-Current Maturity
705,845,078 562,382,212
260,388,844 89,010,212
445,456,234 473,372,002
Secured against hypothecation of specified vehicles of the Company.
Total 1 number of vehicle loan repayable within 36 equal monthly installment.
Vehicle Loan from Others
Balance Outstanding
Current Maturity
Non-Current Maturity
2,306,970
967,711
1,339,259
520,094
520,094
-
Thus the aggregate amount of loan guaranteed by directors is ₹ 695,269,000 (PY ₹ 540,731,000 )
Vehicle Loan from Banks
Balance Outstanding
Current Maturity
Non-Current Maturity
10,575,876
6,888,844
3,687,032
21,650,893
14,013,906
7,636,988
Secured against hypothecation of specified vehicles of the company.
Applicable rate of interest is 10.24% to 12% P.A.
Total 14 number of vehicle loan repayable within 36 equal monthly installment.
6 Deferred tax liabilities (Net)
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
44
PARTICULARSAs at
March 31,2014As at
March 31,2013
10 Trade payables Amount in `
Due to micro and small enterprises *
Due to creditors other than micro and small enterprises #
Total
-
318,363,537
318,363,537
-
293,332,446
293,332,446
* The above information as required to be disclosed under Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the company. Further, no interest has been paid during the year and payable as on 31st March 2014 as well as 31st March 2013 to such parties.
# includes 118,000,000/- (P.Y. 121,779,059) payable to subsidiary companies. Refer note no. 39
11 Other current liabilities
PARTICULARSAs at
March 31,2014As at
March 31,2013
Amount in `
Current maturities of long term borrowings (Refer note no. 5.1)
Advances from customers
Advances from subsidiary companies
Interest accrued but not due on loan
Interest accrued and due on term loans
Book overdraft
Security deposit
Unclaimed dividend
Other payables
-Employee dues payable
-Statutory dues payable
-Others*
Total
261,356,556
499,352,867
150,787,821
3,332,741
-
415,679
5,224,986
196,927
2,166,689
6,997,801
54,757,062
984,589,129
89,530,306
607,742,447
166,136,986
7,308,358
2,007,383
1,127,109
11,127,466
181,101
1,230,000
5,647,884
466,759,106
1,358,798,146
* includes external development charges/ internal development charges and interest payable thereon amounting to Rs. 49,916,208 (P.Y. Rs.458,929,275)
PARTICULARSAs at
March 31,2014As at
March 31,2013
9 Short-term borrowings Amount in `
Secured loansLoan repayable on demand from banks
Cash Credit*
Unsecured loans
Public deposits
Total
845,732,791 850,508,239
331,627,221
1,177,360,012
226,841,000
1,077,349,239
* Cash credit facility from Oriental Bank of Commerce and Bank of India (under consortium arrangement) of Rs. 845,732,791 (previous year Rs. 850,508,239) is secured by first pari-passu charge on the stock in trade, book debts and all other current assets of trading division. This facility is further secured by equitable mortgage of certain immovable properties belonging to the Company and its subsidiary company, personal gaurantees of the directors and corporate guarantee of SRS Real Estate Limited and SRS Retreat Services Limited.
12 Short-term provision
PARTICULARSAs at
March 31,2014As at
March 31,2013
Amount in `
Provision for employee benefits (Refer note no. 36)
Others
Provision for income tax (Net of advance tax & TDS)
Proposed dividend
Provision for dividend distribution tax
Total
62,007
9,725,712
-
-
9,787,719
73,310
27,145,396
20,101,600
3,416,267
50,736,573
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
45
Del
etio
ns/
A
dju
stm
ents
Del
etio
ns/
A
dju
stm
ents
A
s at
A
pri
l 01,
201
3 A
dd
itio
ns
Del
etio
ns/
A
dju
stm
ents
A
s at
M
arch
31,
2014
U
pto
A
pri
l 01,
201
3 F
or
the
Yea
r U
pto
M
arch
31,
201
4 A
s at
M
arch
31,
201
4
Des
crip
tio
n
GR
OS
S B
LO
CK
DE
PR
EC
IAT
ION
NE
T B
LO
CK
As
at
Mar
ch 3
1, 2
013
13.1
Ta
ng
ible
Ass
ets
13
F
ixed
Ass
ets
As
at
Ap
ril 0
1, 2
013
Ad
dit
ion
s D
elet
ion
s/
Ad
just
men
ts
As
at
Mar
ch 3
1,20
14
Up
to
Ap
ril 0
1, 2
013
Fo
r th
e Y
ear
Up
to
Mar
ch 3
1, 2
014
As
at
Mar
ch 3
1, 2
014
Lan
d
26,2
03,6
13
-
14
,461
,304
11
,742
,309
-
-
-
-
11
,742
,309
Bu
ildin
g *
22
0,88
6,76
1
18
1,77
7,61
1
10
5,81
3,65
5
296,
850,
717
2,00
0,86
0
2,90
7,39
0
858,
557
4,04
9,69
3
29
2,80
1,02
4
Pla
nt
& M
ach
iner
y 72
,019
,304
17
,392
,078
10
,038
,073
79
,373
,309
5,
644,
824
5,
117,
405
1,
329,
924
9,43
2,30
5
69
,941
,004
Fu
rnit
ure
& F
ixtu
res
6,68
3,92
5
2,04
5,97
7
-
8,72
9,90
2
977,
377
520,
245
-
1,
497,
622
7,23
2,28
0
Co
mm
erci
al V
ehic
les
34,3
27,7
88
73,0
00
4,94
0,40
0
29
,460
,388
7,
856,
196
3,
574,
450
1,
682,
400
9,74
8,24
6
19,7
12,1
42
Veh
icle
s 35
,185
,804
7,
936,
136
1,
661,
660
41,4
60,2
80
6,52
5,91
3
3,63
3,97
3
799,
586
9,36
0,30
0
32,0
99,9
80
Off
ice
Eq
uip
men
ts
1,89
9,81
5
1,98
2,78
3
-
3,88
2,59
8
144,
012
153,
036
-
29
7,04
8
3,58
5,55
0
Co
mp
ute
r 92
2,01
3
35
4,45
7
8,
200
1,26
8,27
0
219,
366
183,
672
2,05
8
400,
980
86
7,29
0
To
tal
3
98,1
29,0
23
2
11,5
62,0
42
1
36,9
23,2
92
4
72,7
67,7
73
2
3,36
8,54
8
16,0
90,1
71
4,6
72,5
25
34,
786,
194
4
37,9
81,5
79
Pre
vio
us
year
122
,550
,460
280
,916
,293
5,33
7,73
0
398
,129
,023
15,
741,
811
9
,485
,847
1
,859
,110
2
3,36
8,54
8
374
,760
,475
13.
2 C
apit
al w
ork
in p
rog
ress
Cu
rren
t Yea
r *
2
23,8
94,4
66
2
09,8
86,7
64
1
63,9
56,0
57
2
69,8
25,1
73
-
-
-
-
2
69,8
25,1
73
Pre
vio
us
year
846
,453
,277
437
,739
,040
1,06
0,29
7,85
1
223
,894
,466
-
-
-
-
2
23,8
94,4
66
13.3
Inta
ng
ible
Ass
ets
So
ftw
are
6,7
13,2
99
2
2,47
2
-
6,
735,
771
296,
155
672
,100
-
96
8,25
5
5,76
7,51
66,
417,
144
To
tal
6,7
13,2
99
2
2,47
2
-
6,7
35,7
71
29
6,15
5
6
72,1
00
-
9
68,2
55
5,7
67,5
16
6,4
17,1
44
Pre
vio
us
year
-
6
,713
,299
-
6,7
13,2
99
-
2
96,1
55
-
2
96,1
55
6,4
17,1
44
-
* In
clud
es s
truc
ture
s de
velo
ped
unde
r co
llabo
ratio
n ag
reem
ent w
here
land
is h
eld
by th
e su
bsid
iary
com
pani
es.
Des
crip
tio
n
GR
OS
S C
AR
RY
ING
VA
LU
E
DE
PR
EC
IAT
ION
NE
T C
AR
RY
ING
VA
LU
E
* B
orr
ow
ing
co
st a
mo
un
tin
g t
o R
s.14
,875
,210
/- (
P.Y.
NIL
) h
as b
een
cap
ital
ilsed
223,
894,
466 -
As
at
Mar
ch 3
1, 2
013
26,2
03,6
13
218,
885,
901
66
,374
,480
5,
706,
548
26,4
71,5
92
28,6
59,8
91
1,75
5,80
3
70
2,64
7
374
,760
,475
-
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
46
PARTICULARSAs at
March 31,2014As at
March 31,2013
Amount in `
PARTICULARSAs at
March 31,2014As at
March 31,2013
Amount in `
PARTICULARSAs at
March 31,2014As at
March 31,2013
Amount in `
14 Non-current investment (Valued at cost unless stated otherwise)
In equity instruments - unquoted
Trade Investments
In subsidiary companies
SRS Retreat Services Limited
(14,675,868 (previous year 1,900,978) equity shares of Rs.10 each fully paid up)
SRS Automotive Components Private Limited
(4,422,225 (previous year 4,422,225) equity shares of Rs. 10 each fully paid up)
SRS Real Estate Limited
(16,763,312 (previous year 16,763,312) equity shares of Rs.10 each fully paid up)
Auspicious Real Estate Limited
(50,000 (previous year NIL) equity shares of Rs.10 each fully paid up)
Grand Realtech Limited
(50,000 (previous year NIL) equity shares of Rs.10 each fully paid up)
Nav Nirman Realtech Limited
(50,000 (previous year NIL) equity shares of Rs.10 each fully paid up)
SRS Natural Resources Limited
(Formerly known as Arihant Dham Construction Ltd.)
(87,15,000 (previous year NIL) equity shares of Rs.10 each fully paid up)
In joint venture company
SRS Lotus Projects Private Limited
(5,00,000 (previous year 4,99,990) equity shares of Rs.10 each fully paid up)
In joint venture partnership firm
SRS RMC, Gurgaon *
(ceased to be joint venture partnership firm w.e.f. 1st April' 2013)
In associate
Other Investments SRS Hitech Projects Limited
(94,455 (previous year NIL) equity shares of Rs.10 each fully paid up)
Total
* Partnership details
Partners
SRS Real Infrastructure Limited (50%)
Dalbir Singh (50%)
Total
287,851,950
159,928,750
1,060,147,000
500,000
500,000
500,000
87,150,000
5,000,000
-
58,373,190
1,659,950,890
-
-
-
222,451,950
159,928,750
1,060,147,000
-
-
-
-
4,999,900
3,424,003
-
1,450,951,603
3,424,003
3,424,003
6,848,006
(Unsecured, considered good)
Share application money pending allocation
Advance to suppliers/contractors
Security deposit
Total
-
1,416,859
17,117,523
38,524,924
38,524,924
18,534,382
100,000
-
15,464,410
52,118,976
52,118,976
15,564,410
Bank deposits having maturity more than 12 months *
(*Pledged with bank for overdraft / bank guarantee/LC facilities)
Total
15 Long term loans and advances
16 Other non-current assets
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
47
PARTICULARSAs at
March 31,2014As at
March 31,2013
Amount in `17 Inventories
(As taken, valued & certified by the management)
Projects in progress (Refer note no. 25)
Raw material
Goods held for resale
Land for resale
Building material at site
Developed property held for sale
Total
680,259,471
10,452,418
15,350,496
227,249,725
10,856,026
108,537,500
1,052,705,636
1,126,279,052
11,776,300
10,660,474
6,063,003
-
89,998,184
1,244,777,013
PARTICULARSAs at
March 31,2014As at
March 31,2013
Amount in `18 Trade receivables
(Unsecured, considered good unless otherwise stated)
Outstanding for a period exceeding six months from the date they are due for payment
Unsecured, considered good
Unsecured, considered doubtful
Provision for doubtful debts
Other trade receivable
Total *
154,727,692
5,253,605
159,981,297
(5,253,605)
154,727,692
1,191,615,996
1,346,343,688
273,331,654
6,000,000
279,331,654
(6,000,000)
273,331,654
1,297,880,575
1,571,212,229
* includes Rs. 1,240,860 (P.Y. Rs.2,428,894) receivable from subsidiary companies and Rs. 4,339,553 (P.Y. Nil) due from entities where directors have significant interest and Rs. 5,618 (P.Y. Nil) due from associate company (refer note 39)
Cash and cash equivalent
Cash in hand
Balance with scheduled banks
Other bank balances
Upto 12 months maturity from date of acquisition*
Maturity more than 12 months but within one year from the reporting date *
Unpaid dividend account
(*Pledged with bank for overdraft / bank guarantee/LC facilities)
Total
12,419,796
61,098,558
73,518,354
37,262,478
29,705,135
197,543
140,683,510
15,022,633
48,125,177
63,147,810
4,377,924
30,440,250
181,682
98,147,666
Amount in `
Amount in `
19 Cash and bank balances
20 Short term loan and advances
PARTICULARSAs at
March 31,2014As at
March 31,2013
PARTICULARSAs at
March 31,2014As at
March 31,2013
Secured
* includes Rs. 4,024,610 (P.Y. Nil) given to entity where directors have significant interest
Advance to suppliers/contractorsUnsecured, considered good unless otherwise stated
Loans and advances to related parties
Advance to subsidiary companies
Others
Advance to collaborator for projectsCenvat recoverableAdvance to suppliers/contractors
Advance others*
Total
2,300,000
-
80,335,000 10,722,046
135,910,36010,639,067
239,906,473
-
11,340,941
135,806,290 -
329,604,4729,156,335
485,908,038
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
48
PARTICULARSAs at
March 31,2014As at
March 31,2013
Amount in `21 Other current assets
Interest accrued on fixed deposits
Prepaid expenses
Stamp paper in hand
Unbilled receivables
MAT credit entitlement
Total
9,344,341
906,981
150,000
92,802,806
5,789,559
108,993,687
3,053,872
939,798
150,000
65,260,487
-
69,404,157
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
49
PARTICULARSFor the year ended
March 31,2014For the year ended
March 31,2013
22 Revenue from operations
Gross value of sale of goods:
Developed properties
Plots and land
Traded goods
Manufactured goods
Less: Excise Duty
Net Value of sale of goods
Sale of services :
Income from facility management services
Rent
Other operating income
Total
596,753,721 941,429,368
- 83,800,175
7,626,158,280 7,320,617,406
86,224,965 130,511,898
8,309,136,966 8,476,358,847
2,216,051 3,348,434
8,306,920,915 8,473,010,413
20,816,244 1,422,471
2,459,949 5,332,500
36,550,693 15,882,138
8,366,747,801 8,495,647,522
PARTICULARSFor the year ended
March 31,2014For the year ended
March 31,2013
23 Other income
Opening stock
Purchases
Closing stock
Total
21,811,995
884,433
4,597,605
27,294,033
15,586,843
-
1,534,034
17,120,877
PARTICULARSFor the year ended
March 31,2014For the year ended
March 31,2013
24 Cost of material consumed*
Interest income
Reversal of Provision of Bad debts
Miscellaneous income
Total
*also refer note no. 44
11,776,300
61,414,630
(10,452,418)
62,738,512
7,460,452
102,466,276
(11,776,300)
98,150,428
PARTICULARSFor the year ended
March 31,2014For the year ended
March 31,2013
25 Cost of sale of developed properties
Project in progress in the beginning of the year
Add : cost incurred during the year
Cost of developed property
Cost of land
Construction costs
1,126,279,052
80,096,226
4,299,134
154,717,202
936,430,611
802,354,980
5,381,716
229,463,331
Amount in `
Amount in `
Amount in `
Amount in `
Building material consumed
Government charges
Personnel expenses
Finance expenses
Other expenses*
Depreciation on project assets
Project in progress transferred to Subsidiary
Project in progress at the close of the year carried to balance sheet
Cost of project charged to statement of profit & loss account
130,644,277
26,703,598
5,281,870
85,195,175
2,968,433
204,585
1,616,389,552
(375,990,458)
(680,259,471)
560,139,623
69,207,482
2,355,000
3,657,753
82,330,444
12,212,992
345,352
2,143,739,661
-
(1,126,279,052)
1,017,460,609
*includes Rs. NIL (previous year Rs. 3,963,624) related to prior period. Also refer note no 43
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
50
PARTICULARSFor the year ended
March 31,2014For the year ended
March 31,2013
26 Purchase of stock-in-trade
Purchases of land/developed properties
Purchases of goods for resale
Total
221,186,722
7,334,184,177
7,555,370,899
12,406,709
7,116,710,641
7,129,117,350
PARTICULARSFor the year ended
March 31,2014For the year ended
March 31,2013
27 Change in inventory
Opening stock
Goods held for resale- trading division
Land for resale
Developed property held for sale
Closing stock
Goods held for resale- trading division
Land for resale
Developed property held for sale
Decrease/ (Increase) in inventories
10,660,474
6,063,003
89,998,184
15,350,496
227,249,725
108,537,500
(244,416,060)
24,467,966
24,366,012
-
10,660,474
6,063,003
89,998,184
(57,887,683)
PARTICULARSFor the year ended
March 31,2014For the year ended
March 31,2013
28 Employee benefit expense
Salaries, wages, stipend and bonus
Contribution to provident fund and other funds
Provision for employee benefit (refer note no. 36)
Staff welfare expenses
Less: allocated to capital work in progress
Less: allocated to projects in progress
Total
23,046,549
1,122,752
375,997
812,092
25,357,390
569,579
5,281,870
19,505,941
17,135,851
814,241
235,957
774,102
18,960,151
-
3,657,753
15,302,398
PARTICULARSFor the year ended
March 31,2014For the year ended
March 31,2013
29 Finance expenses
Interest on:
Term loans
Cash credit/overdraft
EDC/IDC
others (also refer note no. 43)
Bank and other financial charges
Less: allocated to capital work in progress/ fixed assets
Less: allocated to projects in progress
Total
69,956,782
99,742,757
45,951,146
26,178,568
11,106,049
252,935,302
36,410,467
82,330,444
134,194,391
85,643,516
117,128,355
34,603,188
85,742,626
5,515,855
328,633,540
16,861,387
85,195,175
226,576,978
PARTICULARSFor the year ended
March 31,2014For the year ended
March 31,2013
30 Depreciation and amortisation expense
Depreciation of tangible assets (also refer note no. 13 )
Amortisation of intangible assets (also refer note no.13 )
Less: allocated to projects in progress
Total
16,090,171
672,100
16,762,271
204,585
16,557,686
9,485,847
296,155
9,782,002
345,352
9,436,650
Amount in `
Amount in `
Amount in `
Amount in `
Amount in `
Amount in `
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
51
PARTICULARSFor the year ended
March 31,2014For the year ended
March 31,2013
31 Other expenses
Electricity expenses
Legal and professional
Loss on sale of fixed assets
Assets written off
Printing and stationery
Rates and taxes
Lease rent
Payment to auditors (refer note no. 31.1)
Insurance expenses
Repair and maintenance - plant and machinery
Repair and maintenance - others
Loss from investment in joint venture*
Bad debts
Provision for doubtful debts
Tour, travelling and conveyance
Freight and cartage
Premium on surrender of flats/plots
Power and fuel
Labour charges
CAM charges*
Advertisement
Brokerage and commission
Business promotion
Other expenses
Less: allocated to capital work in progress
Less: allocated to projects in progress
Total
14,106,301
14,100,088
1,907,672
-
1,928,659
1,219,375
11,567,788
2,197,532
1,070,664
1,786,912
6,367,180
-
296,146
-
1,308,918
476,654
8,236,250
14,622,461
2,379,305
14,981,259
17,321,685
20,173,125
2,090,531
6,886,544
145,025,049
3,333,270
2,968,433
138,723,346
454,862
13,179,201
601,888
1,786,730
607,678
304,340
10,786,652
1,883,810
943,290
2,811,702
1,110,437
4,334,372
249,980
6,000,000
893,519
384,647
-
8,052,722
2,772,979
-
6,061,831
26,436,437
1,739,553
7,053,352
98,449,982
1,238,905
12,212,992
84,998,085
*includes Rs. 1,033,840 (previous year Rs.3,998,051) related to prior period. Also refer note no 43
Statutory audit
Tax audit
Reimbursement of expenses
* includes service tax
32 Earning per share
Net profit as per profit and loss account including exceptional items
Face value of share
Weighted average number of equity shares in calculating basic EPS
Weighted average number of equity shares in calculating diluted EPS
Basic earnings per share
Diluted earnings per share
39,926,821
1
201,016,000
201,016,000
0.20
0.20
51,456,510
1
201,016,000
201,016,000
0.26
0.26
31.1 Payment to auditors*
1,573,040
224,720
399,772
2,197,532
1,573,040
224,720
86,050
1,883,810
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
52
Amount in `
33 Contingent liabilities not provided for in respect of:
March 31, 2014 March 31, 2013
3,764,900,000 2,604,900,000
90,842,500 149,360,500
- 439,515
714,308,757 -
Disputed demand in respect of income tax for the AY 09-10 (net of amount deposited)
Particulars
Corporate guarantees given for subsidiary and group Company *
Outstanding bank guarantee
Demand under Haryana Vat Act, 2003 for 2010-11 (Refer note 33.1)
* Excludes corporate guaranteee amounting to Rs. 49,167,714 for which liability has been repaid during the year, but form for satisfaction of charge with ROC not been filed till the Balance Sheet date.
33.1 The company has received notice from Excise & Taxation Commissioner, Haryana seeking to impose tax on the transaction of sale of flats, floors & villas constructed during or before the year 2007-08 to 2010-11 along with the notice of demand for the year 2010-11.
The Company has challenged the view of Excise & Taxation department stating that no method has been prescribed under law for computation of tax and under HVAT Act VAT is not applicable on Developer’s transactions.
However, the company is entitled to recover the same from the customers to whom flats has been sold or with whom agreement for sale has been entered as per the terms of the agreement. As per the management, in case of demand, the company would recover the same from the customers. Hence, no liability would arise in case of demand.
34 In the opinion of the management, the value on realisation of current assets, loans and advances in the ordinary course of business would not be less than the amount at which they are stated in the Balance Sheet and provisions for all known liabilities have been made.
35 Estimated amount of contracts remaining to be executed on capital account and not provided for Rs. 30,220,683 (previous Year Rs. 17,368,700).
36 Employee benefits
The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. Gratuity scheme is unfunded and the Company has provided for leave encashment which is also unfunded.
The following tables summarise the components of net benefit expense recognised in the statement of profit and loss and amounts recognised in the Balance Sheet for the respective plans (as per Actuarial Valuation as on March 31, 2014).
Net employees benefit expense (recognised in the statement of profit and loss for the year ended March 31, 2014):
Net asset/ (liability) recognised in the balance sheet as on March 31, 2014
March 31, 2014 March 31, 2013 March 31, 2014 March 31, 2013
328,608 232,523 115,686 84,936
77,895 51,605 27,270 24,863
- - - -
- - - -
(100,329) (47,965) (73,133) (110,005)
306,174 236,163 69,823 (206)
Gratuity Leave encashment
Net benefit expense
Actuarial (gain) / loss recognised in the year
Particulars
Current service cost
Interest cost
Expected return on plan assets
Past service cost
Fair value of plan assets
Particulars
Present value of defined benefit obligation at the end of the year
Net asset / (liability) recognised in the balance sheet
March 31, 2014 March 31, 2013 March 31, 2014 March 31, 2013
1,171,669 865,495 369,820 303,001
- - - -
(1,171,669) (865,495) (369,820) (303,001)
Leave encashmentGratuity
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
53
Amount in `
Amount in `
Amount in `
Changes in the present value of defined benefit obligation are as follows:
The principal assumptions used in determining gratuity and leave liability for the Company's plans are shown below:
Contribution to defined contribution plans:
March 31, 2014 March 31, 2013
1,122,752 814,241
Particulars
Provident & other funds
37 Segment Reporting
The Company is engaged in the businesses of promotion, construction and development of integrated townships, residential and commercial complexes, manufacturing of RMC and trading in the various parts of the country. Thus, the Company has three reportable business segments. The Company operates in the same geographical segment.
March 31, 2014 March 31, 2013 March 31, 2014 March 31, 2013
865,495 629,332 303,001 303,207
77,895 51,605 27,270 24,863
- - - -
328,608 232,523 115,686 84,936
- - (3,004) -
(100,329) (47,965) (73,133) (110,005)
1,171,669 865,495 369,820 303,001
Benefits paid
Leave encashmentGratuity
Present value of defined benefit obligation at the beginning of the year
Interest cost
Past service cost
Current service cost
Present value of defined benefit obligation at the end of the year.
Actuarial (gain) / loss on obligation
Particulars
March 31, 2014 March 31, 2013 March 31, 2014 March 31, 2013
9.00% 8.20% 9.00% 8.20%
6.50% 5.50% 6.50% 5.50%
0.00% 0.00% 0.00% 0.00%
24.90 22.74 24.90 22.74
Gratuity
Discount rate (based on the market yields available on government
bonds at the accounting date with term that matches that of the liabilities
Salary increase (taking into account inflation, seniority, promotion and
other relevant factor)
ParticularsEarned leave
Average outstanding service of employees upto retirement (years)
Expected rate of return on plan assets
Liability as on balance sheet date
March 31, 2014 March 31, 2013 March 31, 2014 March 31, 2013
30,338 43,658 31,669 29,652
Non-current liability 1,141,331 821,837 338,151 273,349
ParticularsGratuity Earned leave
Current liability
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
54
Amount in `
Amount in `
Amount in `
Amount in `
Segment information as required by Accounting Standard (AS-17) on Segment Reporting is given hereunder:-
Note: Previous year’s figures have been given in the bracket.
Particulars Real Estate Trading Manufacturing Other OperationsInter Segment
EliminationTotal
Revenue
External 627,878,107 7,626,215,612 89,377,889 23,276,193 - 8,366,747,801
(1,028,587,631) (7,318,273,906) (139,687,514) (9,098,471) - (8,495,647,522)
Inter Segment - 6,688,955 6,858,120 - -13,547,075 - - - (5,813,044) - (-5,813,044) -
Total revenue 627,878,107 7,632,904,567 96,236,009 23,276,193 -13,547,075 8,380,294,876
(1,028,587,631) (7,318,273,906) (145,500,558) (9,098,471) (-5,813,044) (8,495,647,522)
Segment results 52,479,223 294,145,384 -1,485,397 -46,763,081 - 298,376,129 (58,860,479) (179,670,203) (18,052,580) (-36,084,472) - (220,498,790)
226,576,978
(134,194,391)
Unallocated corporate expenses 12,954,242
(4,308,228)
Profit before tax 58,844,909
(81,996,171)
Provision for taxation 18,918,088 (30,539,661)
Profit after tax 39,926,821
(51,456,510)
Other information:
2,111,634,709 1,333,094,039 59,169,753 17,600,984 - 3,521,499,485
(2,172,069,639) (1,702,160,706) (93,704,034) (1,568,141) - (3,969,502,520)
Unallocated corporate asset 1,791,928,414
(1,623,653,657)
Total Assets 5,313,427,899
(5,593,156,177)
Segment liabilities 1,611,158,080 970,653,101 9,625,985 478,085,186 - 3,069,522,353 (1,860,118,581) (941,962,130) (21,272,737) (175,817) - (2,823,529,265)
Unallocated corporate liabilities 44,581,584 (610,229,773)
Total Liabilities 3,114,103,936
(3,433,759,038)
Capital expenditure 412,675,514 4,492,648 833,506 - - 418,001,668 (698,468,296) (969,981) (9,912,648) - - (709,350,925)
Unallocated capital expenditure - - - - - 3,469,610 - - - - - (16,017,707)
Total capital expenditure 421,471,278 (725,368,632)
Depreciation and amortisation 5,120,572 394,897 6,160,363 - - 11,675,832
(224,114) (51,501) (5,063,410) - - (5,339,025)
Unallocated depreciation and amortisation 4,881,854
(4,097,625)
Total depreciation and amortisation 16,557,686 (9,436,650)
Financial expenses
Segment assets (including CWIP)
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
55
Amount in `
38 In accordance with Accounting Standard "AS-19 on Leases" the following disclosures in respect of operating leases is made as under:
A. Assets taken on operating lease:
a) The Company has taken an office on non-cancellable operating lease.
b) Lease payments recognised in statement of profit an loss amounting Rs.11,567,788 (previous year Rs.10,786,652)
c) Future commitments in respect of minimum lease payment payable in respect of aforesaid lease entered by the Company are as follows:
B. Assets given on operating lease:
a) Future rental income in respect of minimum lease receivables in respect of aforesaid lease entered by the Company are as follows:
39. As per Accounting Standard-18, the Company’s related parties and transactions are disclosed below:
a) List of related parties and relationships, where control exists:
1) Holding Company
BTL Holding Company Limited (formerly known as BTL Investments & Securities Limited) (SRS Holdings India limited merged with BTL Holding Company Limited w.e.f. 18.07.2013)
2) Subsidiary Companies
i. SRS Real Estate Limited ii. SRS Automotive Components Prrivate Limited ( formerly known as SRS I-Tech Private Limited) iii. SRS Retreat Services Limited iv. Auspicious Real Estate Limited (from 03.05.2013) v. Grand Realtech Limited (from 18.04.2013) vi. Nav Nirman Realtech Limited (from 27.04.2013) vii. SRS Natural Resources Limited (formerly known as Arihant Dham Constructions Ltd.) (from 18.04.2013) viii. Soaring Heights Limited (upto 30.03.2014)
3) Fellow Subsidiary Companies
i. SRS Limited (from 18.07.2013) ii. Soaring Heights Limited (from 31.03.2014)
4) Step Down Fellow Subsidiary Companies i. SRS Cinemas & Entertainment Limited (from 20.05.2013 to 25.01.2014) ii. SRS Modern Retail Limited (from 24.05.2013 to 25.01.2014)
5) Joint Venture i. SRS Lotus Projects Private Limited
6) Associates i. SRS Hitech Projects Limited
b) Related parties and relationships with whom transactions have taken place during the year: 1) Key Management Personnel (KMP)
i. Mr. Anil Jindal Chairman ii. Mr. Jitender Kumar Garg Managing Director iii. Mr. Bishan Bansal Whole-Time Director iv. Mr. Rajesh Singla Whole-Time Director & Chief Financial Officer
March 31, 2014 March 31, 2013
11,012,078 2,068,816.00
48,190,144 8,275,265.00
53,575,832 - c) Later than five years
Particulars
a) Not later than one year
b) Later than one year and not later than five years
March 31, 2014 March 31, 2013
5,619,132 192,000
18,868,256 -
4,195,000 -
Particulars
a) Not later than one year
b) Later than one year and not later than five years
c) Later than five years
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
56
Amount in `
Amount in `
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
57
2) Enterprises owned or significantly influenced by KMP and/or their relatives i. SRS Limited ii. SRS Professional Services Ltd. iii. SRS Global Securities Limited iv. SRS Portfolio Limited v. SRS Finance Limited Transactions with the related parties during the year
Name of the Party Nature of Transaction Nature 2013-14 2012-13
Loan Given Assets - 410,000
Loan & Advance given and received
back
Assets - 10,051,199
Loans and Advance Received Liability 541,743,074 679,855,828
Loans and Advance repaid Liability 567,466,680 529,049,449
Sale of Material & Other Direct Income Income 14,596,031 22,333,224
Transportation Charges Income 2,610,900 -
CAM charges Income 966,112 -
Rent Paid Expense 60,000 60,000
Interest Paid Expense 25,484,834 6,828,025
Reimbursement of expenses Expense 207,711 -
Purchase of investment in shares Assets - 75,000,000
Transfer of Current Assets to
subsidiary company
Assets 375,990,457 -
Transfer of Current Liabilities to
subsidiary company
Liability 375,371,169 -
Corporate Guarantee given 1,260,000,000 -
Corporate Guarantee taken - 724,400,000
Closing Balance:
Sundry Debtors Assets 1,040,860 1,082,883
Loans & Advance received Liability 131,227,995 156,951,601
Investment in shares Assets 1,060,147,000 1,060,147,000
Bank Guarrantee Given 90,842,500 90,842,500
Corporate Guarantee Given 3,264,900,000 2,004,900,000
Corporate Guarantee taken 724,400,000 724,400,000
SRS Real Estate Limited
Land Holding Charges Expense 1,000,000 1,000,000
Reimbursement of Expense Expense - 39,707,003
Loans and Advance received Liability 241,636,278 11,190,000
Loans and Advance given back Liability 251,979,012 -
Loan and advance given and
received back
Assets 39,430,941 -
Interest received Income 11,937,635 -
Interest Paid Expense 1,071,000 -
Purchase of investment in shares Assets 65,400,000 -
Corporate Guarantee taken - 899,400,000
Closing Balance:
Trade Payable Liability - 3,779,059
Investment in Share Assets 287,851,950 222,451,950
Trade Receivables Assets - 1,346,011
Loans and Advance received
(including interest)
Liability 4,626,325 11,190,000
Corporate Guarantee taken 899,400,000 1,249,400,000
SRS Retreat Services
Limited
Amount in `
Loans and Advance received Liability 3,940,000 1,400,000
Purchase of Land Assets - 118,000,000
Interest Paid Expense 2,088,041 -
Reimbursement of Expense Expense - 14,615
Closing Balance:
Loans and Advance received Liability 15,004,622 9,185,385
Trade Payable Liability 118,000,000 118,000,000
Investment in shares Assets 159,928,750 159,928,750
Corporate Guarantee Taken 211,695,716 300,000,000
Reimbursement of expenses Expense 11,386 -
Purchase of investments Assets 500,000 -
Closing Balance:
Investment in shares Assets 500,000 -
Reimbursement of expenses Expense 11,215 -
Purchase of investments Assets 500,000 -
Closing Balance:
Investment in shares Assets 500,000 -
Reimbursement of expenses Expense 15,295 -
Purchase of investments Assets 500,000 -
Closing Balance:
Investment in shares Assets 500,000 -
Purchase of Investment in shares Assets 87,150,000 -
Loan & Advance given and received
back
Assets 23,500,000 -
Reimbursement of expenses Expense 101,109 -
Rent Income Income 487,948 -
Closing Balance:
Investment in shares Assets 87,150,000 -
Trade Receivables Assets 200,000 -
Rent Income Income 67,416 -
Closing Balance:
Investment in shares Assets 58,373,190 -
Trade Receivables Assets 5,618 -
Purchase of Investment in shares Assets 100 -
Reimbursement of expenses Expense 3,000 -
Closing Balance:
Investment in shares Assets 5,000,000 4,999,900
Director’s Remuneration Expense 1,136,628 1,136,628
Closing Balance:
Amount Payable Liability 94,719 94,719
Director’s Remuneration Expense 682,416 682,416
Closing Balance:
Amount Payable Liability 56,868 56,868
Director’s Remuneration Expense 78,060 -
Closing Balance:
Amount Payable Liability 57,518 -
SRS Automotive Components
Private Limited (Formerly
known as SRS I-Tech Pvt.
Ltd.)
Auspicious Real Estate
Limited
Grand Realtech Limited
Nav Nirman Realtech Limited
SRS Natural Resources
Limited
SRS Hitech Projects Limited
SRS Lotus Projects Private
Limited
Mr. Jitender Kumar Garg
Mr. Bishan Bansal
Mr. Rajesh Singla
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
58
CAM Charges Income 399,999 -
Corporate Guarantee given 500,000,000
Closing Balance:
Corporate Guarantee given 500,000,000
Trade Receivables Assets 399,999 -
Loan and advances given Assets 4,024,610 -
Purchase of Investment in shares Assets 58,373,190 -
CAM charges Income 1,044,264 -
Closing Balance:
Loan and advances given Assets 4,024,610 -
Trade receivables Assets 1,044,264 -
SRS Finance Limited
SRS Global Securities Limited
Rent Income Income 668,542 707,868
CAM Charges Income 1,635,782 -
Closing Balance:
Trade Receivables Assets 1,635,782 -
SRS Professional Services
Limited
CAM Charges Income 1,259,508 -
Closing Balance:
Trade receivables Assets 1,259,508 -
Sale of Investment in shares Assets 500,000 -
Reimbursement of expense Expense 162,447 -
CAM Charges Income 402,158
Closing Balance:
Trade receivables Assets 402,158
Reimbursement of expense Expense 14,275 -
Purchase of Investment in shares Assets 500,000 -
SRS Holdings India Limited Loan taken and repaid Liability - 78,800,000
Sale of Fixed Asset Assets 67,488,120 -
CAM Charges Income 7,542,303 -
Expenses Incurred Expense 2,337,395
Sale of Goods Income 6,521
Rent Received(including Service Tax) Income -
-
-
4,382,040
Payment of Advertisement Expenses Expense - 80,700
Reimbursement of Expenses (Net) Expense 784,843 1,289,494
Security received for Lease rent given
back
Liability 69,000,000 -
Sale of Space Income - 139,834,411
Closing Balance:
Security received for Lease rent Liability - 69,000,000
Sundry Creditors Liability - 712,148
Corporate Guarantee given - 600,000,000
SRS Limited
SRS Portfolio Limited
BTL Holding Company
Limited
Soaring Heights Limited
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
59
40. Investment in joint ventures (Disclosure as per Accounting Standard - 27 on Financial Reporting of interest in Joint Ventures)
The Company's share of the assets, liabilities, income and expenditure of it's Joint Venture (under jointly controlled entity) are as follows:
a. Proportionate amount in respect of SRS Lotus Projects Private Limited
Ownership interest
50%
Country of incorporation Principal activities
India Real estate projects
Joint venture
SRS Lotus Projects Private Limited
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
60
March 31, 2014 March 31, 2013Balance sheet
Reserves and surplus 845,487 423,371 Non-current liabilities 2,620,520 1,979,717 Current liabilities 146,390,826 108,737,126 Fixed assets 198,593 304,605 Non-current assets 127,591 134,479 Current assets 154,530,649 115,701,130
Statement of profit and loss
Operating income 67,770,175 111,175,463 Other income 2,906,976 1,470,417
Total revenue 70,677,151 112,645,880 Cost of sale of constructed properties/plots 69,109,984 111,090,727 Employee benefits expense 296,622 153,921 Financial expenses 33,138 4,582 Depreciation 110,676 106,682 Other expenses 497,172 733,270
Total expenditure 70,047,592 112,089,182
Profit before tax 629,559 556,699 Tax expense 207,443 177,745 Net profit after tax and prior period item 422,116 378,954 Proportionate amount in respect of SRS RMC * March 31, 2014 March 31, 2013Balance sheet Reserves and surplus - (336,320)Non-current liabilities - 1,218,483 Current liabilities - 51,752,465 Fixed assets - 18,803,256 Non-current assets - - Current assets - 37,591,694 Statement of profit and loss Operating income - 101,782,427
Total revenue - 101,782,427
Cost of material consumed - 83,732,899 Employee benefits expense - 1,317,237 Financial expenses - 1,463,801 Depreciation - 5,487,223 Other expenses - 10,117,587
Total expenditure - 102,118,747
Loss before tax - 336,320 Tax expense - - Net loss after tax and prior period item - 336,320
st * Ceased to be joint venture partnership firm w.e.f. 1 April 2013 Note: Disclosure of financial data as per Accounting Standard - 27 'Financial Reporting of interest in the joint venture' is made based on the audited financial statements of the above mentioned Joint venture entity
b.
41. On May 09, 2012 the Income Tax Authorities conducted a search and seizure on the Company under section 132 of the Income Tax Act, 1961. Company has not received any further notice/ demand from the Income Tax Authorities in respect of search and seizure conducted and accordingly, no provision in that regard has been made in the financial statements.
42. The Company had started accepting Public Deposits under the Fixed Deposits Scheme w.e.f April 26, 2012 under two different schemes i.e. non-cumulative (A) and cumulative deposits (B) bearing different interest rates based on the period of the deposits. The total deposits accepted by the company during the FY 2013-2014 is:-
The scheme provide the payment of interest on quarterly basis ranging between 11.5% - 12.5% under scheme (A) and compounding of quarterly interest ranging between 12.01% - 14.89% with payment on maturity date under Scheme (B).
43. Prior period expenses
44. Detail of raw material consumed is as follows:
45. Previous year figures have been regrouped/rearranged and reclassified wherever necessary.
March 31, 2014 March 31, 2013
171,206,000 184,529,000
105,579,000 133,295,000
Scheme
Cumulative
Non-Cumulative
March 31, 2014
-
4,309,163
-
1,033,840
5,343,003
Particulars
Cost of developed properties
Interest on income tax
Loss from investment in joint venture
Total
CAM Expenses
March 31, 2013
3,963,624
3,275,910
3,998,051
-
11,237,585
March 31, 2014 March 31, 2013
23,576,508 35,317,178
32,833,015 53,897,955
13,866,353 24,250,855
7,149,210 8,159,656
77,425,085 121,625,644
14,686,573 23,475,216
62,738,512 98,150,428
Total
Less: Interunit transfer
Net consumption
Cement
Sand
Others
Particulars
Stone grit
As per our report of even date attached
For S S Kothari Mehta & Co.Chartered AccountantsFirm Reg. No. 000756N
(Yogesh Gupta)PartnerM.No. 093214
Place : FaridabadDate : May 28, 2014 (Shweta Marwah)
Company SecretaryM.No. 18730
For Naresh Jai & AssociatesChartered AccountantsFirm Reg. No. 019082N
(Naresh Goyal)PartnerM.No. 501487
For and on behalf of the board of directors
(Jitender Kumar Garg)Managing Director
DIN : 00088125
(Rajesh Singla)WTD & CFO
DIN : 00009745
(Dr. Anil Jindal)Chairman
DIN : 00005585
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
61
Amount in `
Amount in `
Amount in `
Financial Statements of SRS Real Estate Ltd. - A Subsidiary
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
62
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
Directors' Report
INTRODUCTION
thYour Directors have pleasure in presenting the 9 Annual Report of your Company along with the Audited Accounts of the Company for the year ended st31 March, 2014.
FINANCIAL RESULTS
During the year under review, your Company registered a Net Profit after Tax of Rs.99.45 Lac. The Summary of the operating results is as under: -
DIVIDEND
Yours Directors have considered it prudent in the interest of the Company to reinvest the profits to build a strong reserve base and expand the projects stof the Company. Therefore, no dividend has been recommended for the year ended 31 March, 2014.
BOARD OF DIRECTORS
In terms of the provisions of Section 152 of the Companies Act, 2013, Sh. Rajesh Singla, Non-Executive Director is due to retire by rotation at the forthcoming Annual General Meeting of the Company and being eligible offers himself for re-appointment as Director of the Company.
thSh. Rajesh Singla has been re-designated from Whole Time Director to a Non- Executive Director of the Company w. e. f. 18 February, 2014, whose period of office shall be liable to retire by rotation.
thSh. Vinod Jindal has been re-designated as Whole Time Director & CFO of the Company on 10 April, 2014.
AUDIT COMMITTEE
th th th rdFour (4) Audit Committee Meetings were held on 25 May 2013; 9 August, 2013; 14 October, 2013 and 3 January, 2014 were attended by all the members and other senior management personnel of accounts and finance department who were considered necessary for providing inputs to the Committee as invitees.
AUDITORS
Statutory Auditors
M/s. S.S. Kothari Mehta & Co., Chartered Accountants, and M/s. Rakesh Raj & Associates, Chartered Accountants, Joint Statutory Auditors of the Company, retire at the ensuing Annual General Meeting of the Company and have expressed their willingness for reappointment as joint statutory auditors in accordance with the Companies Act, 2013 and confirmed that their re-appointment, if made, will be within the prescribed limits under Section 141(3) of the Companies Act, 2013 and they are not disqualified for such reappointment within the meaning of Section 141 of the said Act.
(Amount in Lac)
Particulars Year ended 31. 03. 2014
Year ended 31. 03. 2013
Gross Sales and Other Income 11621.48 18255.37 Profit/(Loss) before Financial Expenses, Depreciation and Tax 588.34 326.32 Interest and Financial Expenses 365.99
222.35 115.64
Profit before Depreciation & Tax 210.68 Depreciation 68.59 69.67 Profit before Tax 153.75 141.01 Provision for Tax - Current - Deferred Tax - Earlier Year
60.87
(4.56) . (2.00)
57.13 (4.78) 0.58
Profit after Tax 99.445 88.08
Earnings Per Share (Face Value of Rs.10/ -) - Basic
- Diluted
0.59
0.59
0.56
0.53
63
Internal Auditors
M/s. Sachin Singhal & Associates
Cost Auditors
M/s. Ashok Kumar & Associates
AUDITORS' REPORT
Auditors of the Company have not expressed any qualification in their report and notes to accounts wherever given are self-explanatory.
FIXED DEPOSITS
Your Company has not accepted any deposits from the Public and as such, no amount of principal or interest was outstanding as on the date of the stBalance Sheet for the year ended 31 March, 2014.
PERSONNEL
There are no employees during the period drawing remuneration specified under Section 217(2) (A) of the Companies Act, 1956. As such, no particulars are required to be furnished.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION & FOREIGN EXCHANGE EARNING AND OUTGO
The Particulars in respect of energy conservation and technology absorption are not applicable to the company.
Foreign Exchange earning and outgo: Nil
DIRECTORS' RESPONSIBILITY STATEMENT
Pursuant to Section 217(2AA), the Directors of the Company confirm the following:
(i) that in the preparation of the Annual Accounts, the applicable Accounting Standards had been followed along with the proper explanation relating to material departures.
(ii) that Directors had selected such Accounting Policies and applied them constantly and made judgments and estimates that are reasonable and prudent so as to give true and fair view.
(iii) that they had taken proper and sufficient care for the maintenance of adequate records in accordance with the provisions of the Companies Act, 1956, for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities.
(iv) that the Directors had prepared the annual accounts on a going concern basis.
ACKNOWLEDGEMENT
The Directors of the Company wish to place on record their sincere appreciation for the efforts and cooperation extended by all those associated with the Company.
Place: FaridabadthDate : 27 May, 2014
On behalf of the BoardFor SRS Real Estate Ltd.
(Vinod Jindal)Whole-Time Director & CFO
DIN No. 00005563
(Nanak Chand Tayal)Whole-Time DirectorDIN No. 00013681
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
64
To,The Members,SRS REAL ESTATE LIMITED,Faridabad
Report on the Financial Statements
We have audited the accompanying financial statements of SRS REAL ESTATE LIMITED (“the company”), which comprise the Balance Sheet as at March 31, 2014, and the Statement of Profit and Loss and the Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principal generally accepted in India, including the Accounting
thStandards referred to in sub-section (3C) of section 211 of the Companies Act, 1956 (“the Act”) read with the general circular 15/2013 dated 13 September, 2013 of the ministry of corporate affairs in respect of section 133 of the Companies Act, 2013. This responsibility includes the design, implementation and maintenance of internal controls relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due 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 Institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of the material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entitity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:
a) In the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2014;
b) In the case of the Statement of Profit and Loss, of the profit for the year ended on that date; and
c) In the case of the Cash Flow Statement, of the cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
(1) As required by the Companies (Auditor's Report) Order, 2003 (“the Order”) [as amended by the companies (Auditor's Report) (amendment) order, 2004] [hereinafter referred to as 'Order') issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Act, we give in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order.
(2) As required by section 227(3) of the Act, we report that:
a) we have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;
b) in our opinion proper books of account as required by law have been kept by the Company so far as appears from our examination of those books;
c) the Balance Sheet, Statement of Profit and Loss and, Cash Flow Statement dealt with by this Report are in agreement with the books of account;
Independent Auditors’ Report
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
65
d) in our opinion, the Balance Sheet, Statement of Profit and Loss and, Cash Flow Statement comply with the Accounting Standards th referred to in sub-section (3C) of section 211 of the Companies Act, 1956 read with the general circular 15/2013 dated 13 September,
2013 of the ministry of corporate affairs in respect of section 133 of the Companies Act, 2013; and
e) on the basis of written representations received from the directors as on March 31, 2014, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2014, from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956;
For S S Kothari Mehta & Co.Chartered AccountantsFirm Regn. No. 000756N
Place: FaridabadthDate : 27 May, 2014
Yogesh K. Gupta(Partner)
M.No. 093214
Ruchi Jain(Partner)
M.No. 099920
For Rakesh Raj & AssociatesChartered AccountantsFirm Regn. No. 005145N
New Delhi« «
I MR EA HH TT A O &K C. OS. .S
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
66
(The Annexure referred in paragraph (1) “Report on other Legal & Regulatory Requirements” of our report to the members of SRS REAL ESTATE stLIMITED on the accounts for the year ended 31 March 2014)
I. (a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.
(b) As explained to us, the Company has a regular program of physical verification of its fixed assets by which fixed assets are verified in a phased manner over a period of three years which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. In accordance with the program, fixed assets were verified during the year and no material discrepancies were noticed on such verification.
(c) Fixed Assets disposed off during the year were not substantial & therefore, do not affect the going concern assumption.
ii. (a) As explained to us, physical verification has been conducted by the management at reasonable intervals in respect of building material, stores & Spares. In our opinion, the frequency of verification is reasonable.
(b) The procedures of physical verification of inventories followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory. As far as we could ascertain and according to the information and explanations given to us, no material discrepancies were noticed between the physical stock and the book records.
iii. (a) The company has granted unsecured loan to 6 companies covered in the register maintained under section 301 of the Companies Act 1956. The maximum amount involved during the year was Rs. 730,941,637 and the year-end balance of loan granted to such parties was Rs. 538,970,063.
(b) In our opinion, the rate of interest wherever stipulated, and other terms and conditions for such loans are not prima facie prejudicial to the interest of the company.
(c) In respect of aforesaid loans, the amount is recoverable on demand, hence provision of this clause is not applicable.
(d) In respect of the loan given by the Company, no amount, principal as well as interest, is overdue, as the loan is repayable on demand; and therefore provisions of clause 4(iii) (d) of the Order is not applicable.
(e) The Company has taken unsecured loan/advances from 2 companies covered in the register maintained under section 301 of the Companies Act, 1956. The maximum amount involved during the year was Rs. 45,085,000 and the year-end balance was Rs. Nil.
(f) In respect of aforesaid loans no repayment schedule is mentioned as the amount is repayable on demand, hence provision of this clause is not applicable.
(g) The amount was paid during the year. Hence the provisions of clause 4 (iii) (g) of the order are not applicable to the company.
iv. In our opinion and according to the information and explanation given to us, there is an adequate internal control system commensurate with the size of the company and the nature of its business for the purchase of fixed assets and for sale of goods and services. However, the internal control system for purchases of inventory needs to be strengthened.
v. (a) According to information and explanations given to us, we are of the opinion that the particulars of all contracts or arrangements that need to be entered into the register maintained 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, the transactions made in pursuance of contracts or arrangements entered in the register maintained under section 301 of the Companies Act, 1956 and exceeding the value of rupees five lakhs in respect of any party during the year have been made at prices which are reasonable having regard to prevailing market prices at the relevant time.
vi. In our opinion and according to the information and explanations given to us, the Company has not accepted any deposits from the public and consequently, the directives issued by the Reserve Bank of India, the provisions of Section 58A, 58AA or any other relevant provisions of the Companies Act, 1956 and the rules framed thereunder are not applicable to the Company.
vii. In our opinion, the Company has an internal audit system however scope of the same need to be further enhanced to commensurate with the size and nature of its business and activities.
viii. We have broadly reviewed the cost records maintained by the company pursuant to the Companies (Cost Accounting Records) Rule 2011 prescribed by the Central Government under Section 209(1)(d) of the Companies Act, 1956 and are of the opinion that prima facie the prescribed cost Records have been maintained. However, we have not carried out a detailed examination of such records with a view to determine whether they are accurate or complete.
Annexure To The Auditors’ Report
ix. (a) The Company has been generally regular in depositing with appropriate authorities undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees' State Insurance, Income Tax, Wealth Tax, Custom Duty, Excise Duty and Cess, though there is slight delay in few cases.
(b) According to the information and explanations given to us, no undisputed amounts payable in respect of Income Tax, Sales Tax, Wealth st Tax, Service Tax, Custom Duty, Excise Duty and Cess which were in arrear as at 31 March 2014 for a period of more than six months from
the date they become payable.
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
67
(c) According to the information and explanations given to us, there are no dues of Sales Tax, Income Tax, Custom Duty, Wealth Tax, Service Tax, Excise Duty and Cess, which have not been deposited on account of any dispute, other than the following:
stx. The Company has no accumulated losses as at 31 March 2014 and has not incurred any cash losses during the financial year covered by our audit and in the immediately preceding financial year.
xi. In our opinion and according to the information & explanations given to us, the company has not defaulted in repayment of dues to bankers and financial institutions. The Company did not have any outstanding debentures during the year.
xii. In our opinion and according to the information & explanation given to us, the Company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities.
xiii. In our opinion, the Company is not a chit fund or a nidhi/ mutual benefit fund/ society. Therefore, the provisions of Clause 4(xiii) of the Order are not applicable to the Company.
xiv. The company has maintained proper records of the transactions in respect of dealing and trading in shares, securities, debentures and other investments and timely entries have been made therein. All shares, securities, debentures and other investments have been held by the company in its own name.
xv. As per the information and explanations given to us, the Company has given corporate guarantees amounting to Rs. 974,400,000 for loans taken by 2 companies from banks, the terms and conditions of the same are not, prima facie, prejudicial to the interest of the company.
xvi. In our opinion and on the basis of information and explanations given to us, the term loans were applied for the purposes for which they were obtained.
xvii. According to the information and explanations given to us and on an overall examination of the Balance Sheet of the Company, we report that the no funds raised on short-term basis have been used for long-term investment.
xviii. According to the information and explanations given to us, the Company has not made any preferential allotment of shares to parties, firms and companies covered in the register maintained under section 301 of the Companies Act, 1956.
xix. According to the information and explanations given to us, the Company has not issued any debentures. Therefore, the provisions of Clause 4(xix) of the Order are not applicable to the Company.
xx. The Company has not raised any money by means of public issue during the year. Accordingly, the provisions of clause 4(xx) of the Order are not applicable to the Company.
xxi. According to the information and explanations given to us, no fraud on or by the Company has been noticed or reported during the course of our audit.
For S S Kothari Mehta & Co.Chartered AccountantsFirm Regn. No. 000756N
Place: FaridabadthDate : 27 May, 2014
Yogesh K. Gupta(Partner)
M.No. 093214
Ruchi Jain(Partner)
M.No. 099920
For Rakesh Raj & AssociatesChartered AccountantsFirm Regn. No. 005145N
New Delhi« «
I MR EA HH TT A O &K C. OS. .S
Name of the Statute
Nature of Dues
Amount (Rs.)*
Period of which the amount relates
Forum where dispute is pending
Income Tax Act, 1961
Income Tax 65,5652 FY 2008-09 ITAT
*Net of Advance Payment
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
68
stBalance Sheet As At 31 March, 2014
PARTICULARS Note As at As at
No. 31-Mar-14 31-Mar-13
EQUITY AND LIABILITIES
Shareholders' FundsShare Capital 3 167,633,120 167,633,120 Reserve and Surplus 4 981,578,518 971,632,960
1,149,211,638 1,139,266,080 Non-Current Liabilities
Long Term Borrowings 5 1,309,276,098 244,496,553
Deferred Tax Liability (Net) 6 1,956,721 2,413,270
Other Long Term Liabilities 7 39,477,804 -
Long Term Provisions 8 2,403,436 1,828,157
1,353,114,059 248,737,980 Current LiabilitiesShort Term Borrowings 9 39,583,349 866,334
Trade Payables 10 70,180,799 103,281,964 Other Current Liabilities 11 2,206,703,904 2,179,297,042
Short Term Provisions 12 60,395,109 124,670,290
2,376,863,161 2,408,115,630
TOTAL 4,879,188,858 3,796,119,690
ASSETS
Non-Current AssetsFixed Asset 13-Tangible Assets 13.1 58,602,650 53,567,805
-Intangible Assets 13.2 - -
58,602,650 53,567,805 Long Term Loans & Advances 14 8,781,570 8,626,750 Other Non-Current Assets 15 8,460,305 42,295,359
75,844,525 104,489,914
Current Assets
Current Investments 16 1,000,000 1,000,000 Inventories 17 2,724,765,011 1,868,978,986 Trade Receivables 18 405,429,473 604,128,578
Cash & Bank Balances 19 147,967,867 125,036,495 Short Term Loans & Advances 20 1,393,324,869 756,748,015 Other Current Assets 21 130,857,113 335,737,702
4,803,344,333 3,691,629,776
TOTAL 4,879,188,858 3,796,119,690
Significant Accounting Policies 2Accompanying Notes from 1 to 41 are integral part of the financial statements
As per our Report of even date attached
Amount in (`)
For S S Kothari Mehta & Co.Chartered AccountantsFirm Regn. No. 000756N
For and on behalf of the Board
(Ruchi Jain)Partner
M.No. 099920
(Vinod Jindal)Whole-Time Director & CFO
DIN No. 00005563
(Nanak Chand Tayal)Whole-Time DirectorDIN No. 00013681
Place: FaridabadthDate : 27 May, 2014
(Rajesh Singla)Director
M.No. 00009745
(Rekha Chauhan)Company Secretary
M.No. 29951
(Yogesh K. Gupta)Partner
M.No. 093214
For Rakesh Raj & AssociatesChartered AccountantsFirm Regn. No. 005145N
New Delhi« «
I MR EA HH TT A O &K C. OS. .S
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
69
stStatement Of Profit & Loss For The Year Ended 31 March. 2014
PARTICULARS As at As atNote
No. 31-Mar-14 31-Mar-13
As per our Report of even date attached
Amount in (`)
22 1,084,041,604 1,803,091,938
23 78,106,782 22,445,718
1,162,148,386 1,825,537,656
24 (28,293,500) (75,682,966)
25 1,018,602,829 1,690,149,792
48,513,104 92,028,320
26 10,707,544 8,419,231
27 36,599,042 11,564,271
28 6,859,925 6,966,923
INCOME
Revenue From Operations
Other Income
Total Revenue
EXPENDITURE
(Increase)/Decrease in Inventories
Cost of Construction/Projects
Purchase of stock for resale
Employee Benefits Expense
Finance Cost
Depreciation & Amortisation
Other Expenses 29 53,783,680 77,990,432
1,146,772,624 1,811,436,003
15,375,762 14,101,653
6,087,727 5,713,278
(456,549) (478,878)
(200,974) 58,529
Profit before Tax
Less: Provision for Taxation
- Current
- Deferred
- Earlier Year
Total Tax Expenses 5,430,204 5,292,929
Profit for the year 9,945,558 8,808,724
Earning per share (Face value-Rs. 10 each) 38
-Basic 0.59 0.56
-Diluted 0.59 0.53
Significant Accounting Policies 2
Accompanying Notes from 1 to 41 are integral part of the financial statements
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
70
For S S Kothari Mehta & Co.Chartered AccountantsFirm Regn. No. 000756N
For and on behalf of the Board
(Ruchi Jain)Partner
M.No. 099920
(Vinod Jindal)Whole-Time Director & CFO
DIN No. 00005563
(Nanak Chand Tayal)Whole-Time DirectorDIN No. 00013681
Place: FaridabadthDate : 27 May, 2014
(Rajesh Singla)Director
M.No. 00009745
(Rekha Chauhan)Company Secretary
M.No. 29951
(Yogesh K. Gupta)Partner
M.No. 093214
For Rakesh Raj & AssociatesChartered AccountantsFirm Regn. No. 005145N
New Delhi« «
I MR EA HH TT A O &K C. OS. .S
Sr. No. PARTICULARSYear ended Year ended31/Mar/14 31/Mar/13
A CASH FLOW FROM OPERATING ACTIVITIES
Net Profit Before Tax (as per Profit & Loss Account) 15,375,762 14,101,653 Adjustment For:
Depreciation & amortisation expenses 7,198,582 7,174,869 Interest & finance expenses 201,672,019 258,957,538 Loss on sale of Fixed Assets (Net) 802,594 92,080 Balances w/off 855,928 1,390 Profit on Sale of Investments - (30,223) Provision for diminution in the value of Investment - (35,000) Interest Received (76,985,541) (18,691,067)
Operating Profit Before Working Capital Change 148,919,344 261,571,240
Adjustment For movement in working capital:
Increase in Long term Provisions 575,279 374,953
Increase/(Decrease) in Trade payables (33,957,093) (84,889,490)
Increase/(Decrease) in Other Current Liabilities 1,13,061,640 636,946,015 Increase/(Decrease) in Short term Provisions (61,812,312) 122,161,847 Increase/(Decrease) in other Long Term Liabilites 39,477,804 18,805,742
(Increase) / Decrease in Trade Receivable 198,699,110 385,510,357 (Increase )/Decrease in Inventories (855,786,025) (80,190,547)
(Increase )/Decrease in Long term Loan & advances (154,823) (8,096,750)
(Increase )/Decrease in non current Assets 33,835,054 (17,647,258)
(Increase )/Decrease in Short term Loan & advances (481,035,554) 1,102,645,326 (Increase )/Decrease in Other Current Assets 207,140,800 337,889,118
Cash Generated From Operations (691,036,766) 2,675,080,553
Direct Taxes Paid (8,349,622) (7,872,875) Net Cash From Operating Activities (A) (699,386,398) 2,667,207,678
B Cash Flow From Investing Activities
Purchases of Fixed Assets (14,371,523) (3,778,839) Proceeds from sale of Fixed Assets 1,335,500 3,013,500
Proceeds from sale of Investments - 1,030,223 Loan Given (Net) (155,541,300) (424,810,467)
Investment in Fixed Deposits (30,938,912) 58,747,559 Interest Received 74,725,330 28,231,862
Net Cash Used In Investing Activities (B) (124,790,905) (337,566,162)
C Cash Flow From Financing Activities
Proceeds From Long Term Borrowings 1,513,249,212 80,886,311
Repayments of Long Term Borrowings (542,836,575) (1,983,440,846)
Proceed From Short Term Borrowings (Net) 38,717,015 (20,327,120)
Interest Paid (192,959,889) (368,728,489) Net Cash Used In Financing Activities ( C) 816,169,763 (2,291,610,144)
Net Increase In Cash And Cash Equivalent (A+B+C) (8,007,540) 38,031,372
Cash & Cash Equivalent at the beginning of the Year 103,232,152 65,200,780 Cash & Cash Equivalent at the end of the Year 95,224,612 103,232,152
Net Increase In Cash And Cash Equivalents (8,007,540) 38,031,372
stCash Flow Statement For The Year Ended 31 March. 2014
As per our Report of even date attached
Amount in (`)
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
71
For S S Kothari Mehta & Co.Chartered AccountantsFirm Regn. No. 000756N
For and on behalf of the Board
(Ruchi Jain)Partner
M.No. 099920
(Vinod Jindal)Whole-Time Director & CFO
DIN No. 00005563
(Nanak Chand Tayal)Whole-Time DirectorDIN No. 00013681
Place: FaridabadthDate : 27 May, 2014
(Rajesh Singla)Director
M.No. 00009745
(Rekha Chauhan)Company Secretary
M.No. 29951
(Yogesh K. Gupta)Partner
M.No. 093214
For Rakesh Raj & AssociatesChartered AccountantsFirm Regn. No. 005145N
New Delhi« «
I MR EA HH TT A O &K C. OS. .S
stSignificant Accounting Policies And Notes To Accounts For The Year Ended 31 March 2014
1. Backgroundth SRS Real Estate Limited (“The Company”) was incorporated on 10 October 2005 under the Companies Act 1956. The Company is wholly
owned subsidiary of SRS Real Infrastructure Ltd. The Company is primarily engaged in the business of promotion, construction and development of both residential as well as commercial complexes.
2. Significant Accounting Policies
2.1 Basis of Accounting
The financial statements are prepared under the historical cost convention, on accrual basis of accounting and in accordance with Generally Accepted Accounting Principles ('GAAP') in India and comply with Accounting Standards prescribed by the Companies (Accounting Standards) Rules, 2006 and in accordance with the provisions of the Companies Act, 1956 and/or notified sections of Companies Act 2013. All assets and liabilities have been classified as current or non-current, wherever applicable as per the operating cycle of the Company as per the guidance as set out in the Revised Schedule VI to the Companies Act, 1956.
2.2 Use of Estimates
The preparation of financial statements is in conformity with generally accepted accounting principles, which requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities and contingent assets on the date of financial statements and the results of operations during the reporting years. Although these estimates are based upon management's best knowledge of current events and actions, actual results could differ from those estimates and revisions, if any, are recognized in the current and future years in which results are known /materialized.
2.3 Revenue Recognition
a. Revenue from sale of land and plots (held for resale) is recognised in the financial year in which the transfer is made by written agreement to sell/registration of sale deed or otherwise in favour of parties when the significant risk and reward of the ownership are transferred and there is a certainty of realisation of the consideration.
b. Revenue from sale of constructed properties is recognised on the “Percentage of Completion method” of accounting. Sale consideration receivable as per the allotment letters/agreements to sell entered into for constructed properties is recognised as revenue on the basis of percentage of actual project costs incurred thereon to total estimated project cost, subject to such actual cost incurred being 25 per cent or more of the total estimated project cost. Project cost includes cost of land (including development rights), government charges, construction costs and development/ construction materials of such properties, estimated internal development charges, external development cost. The estimates of the saleable area and costs are reviewed periodically by the management and any effect of changes in estimates is recognised in the year such changes are determined. However, when the total project cost is estimated to exceed total revenues from the project, the loss is recognised immediately.
As per the Revised Guidance Note issued by Institute of Chartered Accountants of India (“ICAI”) on “Accounting for Real Estate transactions the revenue have been recognised on percentage of completion method provided all of the following conditions are met at the reporting date.
i. atleast 25% of estimated construction and development costs (excluding land cost) has been incurred, 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)
iii. atleast 10% of the total revenue as per agreement to sell are realised in respect of these agreements
iv. all critical approvals necessary for commencement of the project have been obtained.
c. The construction/development cost in respect of sales recognized is proportionately charged to the Profit & Loss A/c in consonance with the matching cost concept.
d. Interest on delayed payments by customers against dues is taken into account on acceptance or realization owing to practical difficulties and uncertainties involved.
e. Interest income, other than interest recovered from the customers, is accounted for on time proportion basis taking into consideration the amount outstanding and rate applicable
f. Revenue from trading activity and 'securities held for trade' is recognized on accrual basis.
g. Dividend Income on investment is accounted for when the right to receive the payment is established.
2.4 Unbilled receivables
Unbilled receivables represent revenue recognised based on 'Percentage of Completion Method' as per policy 2.3(a) & 2.3(b) which are not due from customers as per the payment plan agreed with the customers.
2.5 Fixed Assets, Capital Work in Progress and Intangible Assets
Fixed Assets are stated at cost less accumulated depreciation and impairment losses, if any. Cost comprises the cost of acquisition / purchase price inclusive of duties, taxes, incidental expenses, erection/commissioning expenses, interest etc. up to the date the asset is ready for its intended use. Credit of duty, if availed, is adjusted in the acquisition cost of the respective fixed assets.
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
72
Capital Works-in-Progress, including capital advances, is carried at cost, comprising direct cost, related incidental expenses and interest on borrowings to the extent attributed to them.
Intangible assets are recognized as per the criteria specified in Accounting Standard -26 “Intangible Assets” prescribed by the Companies (Accounting Standards) Rules, 2006 and recorded at the consideration paid for acquisition.
Capital expenditure incurred on rented properties is classified as leasehold improvements under fixed assets.
2.6 Depreciation on Fixed Assets and Amortization
Depreciation on fixed assets is applied on straight-line basis as per the rates and manner specified in the Schedule XIV to the Companies Act, 1956 on pro rata basis.
Depreciation on fixed assets costing upto Rs.5000/- is provided @100% over a period of one year.
Intangible Assets are amortized over the useful life of the assets or ten years, whichever is earlier.
Depreciation on leasehold improvements are charged over the period of lease.
2.7 Borrowing Cost
Borrowing costs that are directly attributable to the acquisition or construction of qualifying assets are considered as part of the cost of Assets/Projects. Qualifying Asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are treated as period cost and charged to the profit and loss account in the year in which incurred.
2.8 Impairment of Assets
The Company assesses at each balance sheet date whether there is any indication that an asset may be impaired. If any such indication exists, the Company estimates the recoverable amount of the asset. If such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount and the reduction is treated as an impairment loss and is recognised in the statement of profit and loss. If at the balance sheet date there is an indication that a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount subject to a maximum of depreciated historical cost and is accordingly reversed in the Statement of Profit and Loss.
2.9 Investments
Investments are classified as current or non current, based on management's intention at the time of purchase. Investments that are readily realisable and intended to be held for not more than a year are classified as current investments. All other investments are classified as non current investments.
Trade investments are the investments made for or to enhance the Company's business interests.
Current investments are stated at lower of cost and fair value determined on an individual investment basis. Non Current investments are stated at cost and provision for diminution in their value, other than temporary, is made in the financial statements.
2.10 Inventories
Inventories are valued as under :
a. Building Materials at lower of cost and net realizable value.b. Projects/Contracts work in progress at lower of actual cost and net realizable value. c. Land, Flats, Shops, Plots, Traded Goods etc. at lower of actual cost and net realizable value.d. Securities held for trade at lower of actual cost and net realizable value
Costs of building materials are determined on First in First out ('FIFO') basis in the ordinary course of business.
Net realizable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale.
2.11 Cost of Revenue
a. Cost of developed plots and land includes land acquisition cost (including development rights), estimated internal development costs, external development charges borrowing cost, overheads, and other related government charges, which is charged to the statement of profit and loss proportionate to plotted area/ land in respect of which revenue is recognized as per accounting policy no. 2.3(b) above, in consonance with the concept of matching cost and revenue. Final adjustment is made on completion of the specific project.
b. Cost of constructed properties includes cost of land (including development rights), estimated internal development costs, external development charges, borrowing cost, overheads, other related government charges, construction costs and development/ construction materials, which is charged to the statement of profit and loss proportionate to the revenue recognized as per accounting policy no. 2.3 (a) above, in consonance with the concept of matching cost and revenue. Final adjustment is made on completion of the specific project
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
73
2.12 Taxation
Income tax expense is accounted for in accordance with AS-22 “Accounting for Taxes on Income” for both Current Tax and Deferred Tax as stated below:
Current Tax:
Provision for Taxation is ascertained on the basis of assessable profit computed in accordance with the provisions of Income Tax Act, 1961.
Deferred Tax:
Deferred Tax is recognized, subject to the consideration of prudence, as the tax effect of timing difference between the taxable income & accounting income computed for the current accounting year and reversal of earlier years' timing difference and are capable of reversal in one or more subsequent years and is calculated in accordance with the Provisions of Income Tax Act, 1961. Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted as at the balance sheet date.
Deferred Tax Assets are recognized and carried forward to the extent that there is a reasonable certainty, except arising from unabsorbed depreciation and carry forward losses, which are recognized to the extent that there is virtual certainty, that sufficient future taxable income will be available against which such deferred tax assets can be realized.
Minimum Alternate Tax ('MAT') paid in accordance with the tax laws, which gives rise to future economic benefits in the form of adjustment of future income tax liability, is considered as an asset if there is convincing evidence that the Company will pay normal tax after the tax holiday period. The Company reviews the same at each balance sheet date and writes down the carrying amount of MAT credit entitlement to the extent there is no longer convincing evidence to the effect that Company will be able to utilise that credit during the specified year
2.13 Employee benefits
Expenses and Liabilities in respect of employee benefits are recorded in accordance with Accounting Standard 15- Employee Benefits (Revised 2005) as notified by The Companies (Accounting Standards) Rules, 2006.
a) Defined Benefit Plan
Gratuity
Gratuity is a post-employment benefit and is the in the nature of a defined benefit plan. The liability recognized in the balance sheet in respect of gratuity is the present value of the defined benefit/ obligation at the balance sheet date less the fair value of plan assets, together with adjustments for unrecognized actuarial gains or losses and past service costs. The defined benefit/obligation is calculated at or near the Balance Sheet Date by an Independent Actuary using the projected unit credit method.
Compensated absences
Liability in respect of compensated absences becoming due or expected to be availed within one year from the balance sheet date is recognized on the basis of undiscounted value of estimated amount required to be paid or estimated value of benefit expected to be availed by the employees. Liability in respect of compensated absences becoming due or expected to be availed more than one year after the balance sheet date is estimated on the basis of an actuarial valuation performed by an independent Actuary using the projected unit credit method.
Actuarial gains and losses arising from past experience and changes in actuarial assumptions are charged or credited to the Profit and loss account in the year to which such gains or losses relate
b) Defined Contribution Plan
The company makes contribution to Employees Provident Fund and Family Pension Fund which are deposited with the Regional Provident Fund Commissioner and contribution paid or payable is charged to Statement of Profit & Loss in the year in which services are rendered by the employee.
c) Other short term benefits
Expense in respect of other short term benefits is recognized on the basis of the amount paid or payable for the year during which services are rendered by the employee.
2.14 Leases
Assets taken on lease under which, all risks and rewards of ownership are effectively retained by the lessor are classified as operating lease. Operating lease payments are recognized as expenses in the profit and loss account on a straight-line basis over the lease term
2.15 Cash Flow Statement
Cash flows are reported using the indirect method, whereby a profit before tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, financing and investing activities of the company are segregated.
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
74
2.16 Earning Per Share (EPS)
Earning 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 number of equity shares outstanding during the year is adjusted for events of bonus issue
For the purpose of calculating diluted earning per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.
2.17 Provisions, Contingent Liabilities and Contingent Assets
Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Liabilities which are material, and whose future outcome cannot be ascertained with reasonable certainty, are treated as contingent, and disclosed by way of notes to the accounts. Contingent Assets are neither recognized nor disclosed in the financial statement.
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
75
stNotes To The Financial Statements as at 31 March 2014
3. Share Capital
*1,67,63,312 (Previous year 1,67,63,312) equity shares are held by the Holding Company, SRS Real Infrastructure Limited and its nominees
Number Amount Number Amount
Authorised
Equity Share of Rs. 10/- each - -
Opening 17,500,000 175,000,000 15,770,000 157,700,000
Additions - - 1,730,000 17,300,000
Deductions - - - -
Closing 17,500,000 175,000,000 17,500,000 175,000,000
Issued, Subscribed & Fully Paid up*
Equity Share of Rs. 10/- each
Opening 16,763,312 167,633,120 15,763,312 157,633,120
Additions - - 1,000,000 10,000,000
Deductions - - - -
Closing 16,763,312 167,633,120 16,763,312 167,633,120
Total 16,763,312 167,633,120 16,763,312 167,633,120
Particulars stAs at 31 March 2014 stAs at 31 March 2013
Amount in (`)
3.1 Detail of Holding Company
Percentage of
holding
No. of Shares Percentage
of holding
SRS Real Infrastructure Limited 100 16,763,312 100
stAs at 31 March 2013
16,763,312
Particulars
stAs at 31 March 2014
No. of Shares
3.2 Detail of shareholders holding more than 5% shares
Percentage of
holding
No. of Shares Percentage
of holding
SRS Real Infrastructure Limited 100 16,763,312 100
Name of Shareholder
16,763,312
stAs at 31 March 2014
No. of Shares
stAs at 31 March 2013
3.3 The rights, preference and restrictions attached to each class of shares including restrictions on the distribution of dividends and the repayment of capital are as under
Equity Shares
The equity shares have a par value of Rs. 10 per share. Each shareholder is entitled to one vote per share.
In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the Company, after distribution of all preferential amounts, if any. The distribution will be in proportion to the number of equity shares held by the shareholders.
3.4 Aggregate number of bonus share issued for consideration other than cash during the period of five years immediately preceding the reporting period
31-Mar-14 31-Mar-13 31-Mar-12
7,881,656 7,881,656 7,881,656 Equity Shares allotted as fully paid up bonus shares by capitalisation of reserves (No. of Shares)*
Particulars As at
*7,881,656 bonus shares issued during financial year 2011-12
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
76
4. Reserve and Surplus
31-Mar-14 31-Mar-13
I. Securities Premium Reserve
Opening Balance 886,823,880 821,823,880
Addition during the year - 65,000,000
Closing Balance 886,823,880 886,823,880
II. Surplus
Opening Balance 84,809,080 76,000,356
Profit for the Year 9,945,558 8,808,724
Closing Balance 94,754,638 84,809,080
Total Carried Forward to Balance Sheet (I+II) 981,578,518 971,632,960
ParticularsAs at
Amount in (`)
31-Mar-14 31-Mar-13
Term Loan
Secured
- From Banks 1,230,830,683 243,405,183
- From Other Parties 78,445,415 -
1,309,276,098 243,405,183
Deferred Credit Payment
Unsecured - 1,091,370
- 1,091,370
Total 1,309,276,098 244,496,553
As atParticulars
5.1 The requisite particulars in respect of secured borrowings are as under :-
ParticularsAs atst31 March 2014
As atst 31 March 2013
Particulars of security/guarantees//
default
Terms ofRepayment
Amount in (`)
Union Bank Of India- Term Loan - 1
Balance Outstanding
Current Maturity
Non-Current Maturity
Punjab National Bank- Term Loan
Balance Outstanding
Current Maturity
Non-Current Maturity
224,231,418
224,231,418
-
25,000,000
-
25,000,000
677,774,873
450,000,000
227,774,873
“Secured against Equitable Mortgage of land measuring 19.018 acres at Sector-87 Faridabad and construction there on.
Personal Guarantee of Directors and Corporate Gurantee of Land owning Companies and SRS Real Infrastructure Ltd. (Holding Company)
Applicable rate of interest is Base Rate + 4.50 % P.A. subject to change from time to time"
“Secured against 1st charge on all fixed assets including land measuring 49Kanal 35 Marle located at village Allahpur, sector-6, palwal and Cap i t a l WIP re la ted t o t he p ro jec t .Personal Guarantee of Directors and Corporate Gurantee of Land owning Companies ( Juhi Infrastructure Private Limited and Singhal Propbuild Private Limited)
Applicable rate of interest is Base Rate + TP0.50 % + 6.00% -2.75%Concession = 14.00% p.a. with monthly rests. subject to change from time to time.”
"8 Quarterly installment commencing from October, 2012 as under: No. Amount (Per Installment) 8 11,25,00,000"
6 Quaterly stepped up installments commencing from oct to dec 2015 quarter. First two installments of Rs. 1.50 cr each and remaining four installments of Rs. 4.25 cr.
Refer Note No. 5.1
5 Long-Term Borrowings
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
77
ParticularsAs atst31 March 2014
As atst31 March 2013
Particulars of security/guarantees//
default
Terms ofRepayment
Amount in (`)
UBI TERM LOAN - Term Loan - 2
Balance Outstanding
Current Maturity
Non-Current Maturity
Oriental Bank Of Commerce- Term Loan
Balance Outstanding
Current Maturity
Non-Current Maturity
CBI Term Loan
Balance Outstanding
Current Maturity
Non-Current Maturity
Canara Bank Term Loan
Balance Outstanding
Current Maturity
Non-Current Maturity
63,649,562
-
63,649,562
281,512,994
-
281,512,994
255,881,537
50,000,000
205,881,537
727,044,653
727,044,653
14,222,208
-
14,222,208
-
-
-
-
-
“Secured against Equitable Mortgage of Project land admeasuring 6.4375 Acres at Sector - 6, Palwal and construction thereon. Escrow account.
Personal Guarantee of Directors and Corporate Gurantee of SRS Retreat Services Ltd. and SRS Real Infrastructure Ltd. (Holding Company)
Applicable rate of interest isBase Rate + 4.25% = 14.75% p.a. " “Secured against Equitable Mortgage of Project land (Including Proposed Building) acquired in collaboration with Sky High Colonizers Pvt. Ltd. (now merged with SRS Retreat Services Ltd) Pari Passu charge on the chargeable Current Assets of the project.
Personal Guarantee of Directors and Corporate Gurantee of Land owning Companies and SRS Real Infrastructure Ltd. (Holding Company)
Applicable rate of interest is Base Rate + 3.25 % P.A. +0.50% T.P. subject to change from time to time "
"Secured against Equitable Mortgage of Project land (Including Proposed Building) acquired in collaboration with Sky High Colonizers Pvt. Ltd. (now merged with SRS Retreat Services Ltd) Pari Passu charge on the chargeable Current Assets of the project.
Personal Guarantee of Directors and Corporate Gurantee of Land owning Companies and SRS Real Infrastructure Ltd. (Holding Company)
Applicable rate of interest is Base Rate + 4 % P.A. subject to change from time to time”
"COLLATERAL SECURITY :1. Khewat no:-128/110 khatoni no:-154 khatoni no:-113 27 kenal 6.5 marla in the name of the company situated at village baselwa Tehsil + distt:-faridabad.2. khewat no:-khatoni no:-202/242 M.N 47 Kila no:-2/3 78 kenal 18 marla in the name of the company.3. khewat no:-173/205 , 312/375 , 326/392 , 202/242 Total area 78 kenal 18 marla in the name of Real Infrastructure ltd . Applicable rate of interest is Base Rate + 3.75 % P.A. subject to change from time to time"
Start from Qtr 1 of F.Y. 2015-16 and the loan will be repaid in 8 equal quarterly installments of Rs. 2.50 cr.
"8 Quarterly installment with a moratorium of 36 months starting from
th25 sep., 2015 from the date of first disbursement. No. Amount (Per Installment) 8 5,00,00,000"
"8 Quarterly installment commencing from March , 2015 as under:No. Amount(Per Installment) 8 5,00,00,000"
"8 Quarterly installment commencing from June , 2015 as under:No. Amount(Per Installment) 8 137500000"
Tata Cap. Housing Finance Ltd
Balance Outstanding
Current Maturity
Non-Current Maturity
78,445,415
78,445,415
-
-
“Equitable Mortage of the following property: Pre-identified 81 unsold flats (alongwith proportionate undivided rights rights in land) forming part of group housing colony named 'SRS Residency' been constructed by borrower on land measuring 15.06 acres at sector 88 , faridabad. Hypothecation of all Receivables of the SRS Residency Project land and constructions thereon. Lien on units in the project.
Personal Guarantee of Director and Corporate Gurantee of SRS Real Infrastructure Ltd. (Holding Company)
Applicable rate of interest is 15.25 % P.A. on monthly reducing & floating rate basis"
Repayable within 15 equal monthly installments.
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
78
Vehicle Loan from Banks
Balance Outstanding
Current Maturity
Non-Current Maturity
Summary
Balance Outstanding
Current Maturity
Non-Current Maturity
10,374,042
4,186,690
6,187,352
1,666,139,621
356,863,523
1,309,276,098
2,638,533
1,230,431
1,408,102
694,635,614
451,230,431
243,405,183
“Secured against hypothecation of specified vehicles of the Company.."
Total 8 number of vehicle loan repayable within 36 equal monthly installment.
ParticularsAs atst31 March 2014
As atst31 March 2013
Particulars of security/guarantees//
default
Terms ofRepayment
Amount in (`)
Thus the aggregate amount of loan guaranteed by Directors is 16557.65 Lacs (PY 6919.97 Lacs)
6 Deferred Tax Liabilities (Net)
31-Mar-14 31-Mar-13
Deferred Tax Liability Fixed Assets 2,842,376 3,133,232
Total Deferred Tax Liability (A) 2,842,376 3,133,232
Deferred Tax Assets
Provision for Bonus 84,796 92,436 Provision for Employees Benefits 800,859 627,526 Total Deferred Tax Assets (B) 885,655 719,962
Deferred Tax Liabilities (Net) (A-B) 1,956,721 2,413,270
As atParticulars
Amount in (`)
7. Other long term liabilitiesAmount in (`)
31-Mar-14 31-Mar-13
Security Deposits Payable 39,477,804 -
Total 39,477,804 -
ParticularsAs at
8. Long-Term Provisions
31-Mar-14 31-Mar-13
Provision for Employee Benefits* 2,403,436 1,828,157
Total 2,403,436 1,828,157
ParticularsAs at
Amount in (`)
*Also refer Note No 34
31-Mar-14 31-Mar-13
Bank Overdraft - Secured* 4,731,892 866,334
Demand loan (Unsecured)
- From Others 34,851,457 -
Total 39,583,349 866,334
ParticularsAs at
Amount in (`)9. Short-Term Borrowings
*Secured against Fixed deposits
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
79
10. Trade Payables
31-Mar-14 31-Mar-13
Dues of MSMEs* - -
Dues of other than MSMEs 70,180,799 103,281,964
Total 70,180,799 103,281,964
ParticularsAs at
Amount in (`)
*Also refer Note No 33
11. Other Current Liabilities
Amount in (`)
31-Mar-14 31-Mar-13
Current Maturities on Long Term Debts 356,863,523 451,230,431
Advance from Customers 1,401,135,346 1,654,685,068
Advance income received 28,000 29,000
Interest Accrued but not due on Term Loans 10,629,397 1,917,267
Security Deposit / Retentions 24,559,753 48,884,053
Book Overdraft 1,839,748 465,298
Other Payables
-Employee 3,342,183 3,500,475
-Auditors 1,023,600 1,011,240
-Statutory Dues 12,636,726 14,979,631
-Other * 394,645,628 2,594,579
Total 2,206,703,904 2,179,297,042
ParticularsAs at
* includes external development charges/ internal development charges and interest payable thereon amounting to Rs. 378,909,892 (P.Y. Rs.865,572)
12. Short-Term Provisions
31-Mar-14 31-Mar-13
Provision for Taxation (Net of advance tax & TDS) - 2,462,869
Provision for Expenses 60,264,522 122,101,456
provision for wealth tax 65,663
Provision for Employee Benefits * 64,924 105,965
Total 60,395,109 124,670,290
ParticularsAs at
-
* Also refer Note No 34
Amount in (`)
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
80
(A
mo
un
t in
`)
Des
crip
tion
Des
crip
tion
As
atA
pril
01, 2
013
As
atA
pril
01, 2
013
Add
ition
s
Add
ition
s
Ded
uctio
ns/
Adj
ustm
ents
Ded
uctio
ns/
Adj
ustm
ents
Lea
seh
old
Imp
rove
men
ts
14,8
87,5
20
-
14,8
87,5
20
5,36
3,54
8 1,
654,
003
7,
017,
552
7,86
9,96
8 9,
523,
972
Fu
rnit
ure
& F
ixtu
re
19,0
45,4
18
260,
652
19
,306
,070
5,
919,
109
1,26
2,05
6
7,18
1,16
5 12
,124
,905
13
,126
,309
Veh
icle
19
,570
,275
12
,772
,846
6,
083,
465
26,2
59,6
56
7,32
8,23
3 2,
160,
864
3,94
5,36
9 5,
543,
728
20,7
15,9
28
12,2
42,0
42
Pla
nt
& M
ach
iner
y 5,
414,
194
63,1
59
5,
477,
353
1,22
0,10
1 27
6,19
3
1,49
6,29
4 3,
981,
059
4,19
4,09
3
Off
ice
Eq
uip
men
t 17
,097
,856
52
6,90
3
17,6
24,7
59
3,85
4,13
5 83
0,71
2
4,68
4,84
7 12
,939
,912
13
,243
,721
Co
mp
ute
r 7,
484,
531
747,
963
8,
232,
494
6,24
6,86
3 1,
014,
754
7,
261,
616
970,
878
1,23
7,66
8
Tota
l 83
,499
,794
14
,371
,523
6,
083,
465
91,7
87,8
52
29,9
31,9
89
7,19
8,58
2 3,
945,
369
33,1
85,2
02
58,6
02,6
50
53,5
67,8
05
Pre
vio
us
Yea
r 86
,026
,674
3,
778,
839
6,30
5,71
9 83
,499
,794
26
,188
,656
6,
943,
473
3,20
0,14
0 29
,931
,989
53
,567
,805
59
,838
,018
As
atM
arch
31,
201
4
As
atM
arch
31,
201
4
Upt
oA
pril
01,2
013
Upt
oA
pril
01,2
013
For t
he y
ear
For t
he y
ear
Del
etio
ns/
Adj
ustm
ents
Del
etio
ns/
Adj
ustm
ents
As
atM
arch
31,
2014
As
atM
arch
31,
2014
Upt
oM
arch
31,
2014
Upt
oM
arch
31,
2014
As
atA
pril
01, 2
013
As
atA
pril
01, 2
013
13
F
ixed
Ass
ets
13.1
T
ang
ible
Ass
ets
So
ftw
are
1,57
7,21
2 -
1,
577,
212
1,57
7,21
2
1,
577,
212
- -
To
tal
1,5
77,2
12
-
-
1,57
7,21
2 1,
577,
212
- -
1,57
7,21
2 -
-
P
revi
ou
s Y
ear
13.2
I
nta
ng
ible
Ass
ets
GR
OSS
BLO
CK
GR
OSS
BLO
CK
DEP
REC
IATI
ON
DEP
REC
IATI
ON
NET
BLO
CK
Net
Blo
ck
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
81
31-Mar-14 31-Mar-13
8,460,305 42,295,359
Total 8,460,305 42,295,359
Other Bank Balances-Restricted Cash
ParticularsAs at
Fixed Deposits kept as margin against bank guarantee
& Bank overdraft (Refer Note 19.1)
Amount in (`)
15. Other Non-Current Assets
31-Mar-14 31-Mar-13
Security Paid 8,781,570 8,626,750
Total 8,781,570 8,626,750
ParticularsAs at
14. Long Term Loans & Advances
Amount in (`)
16. Current Investments (Current, Non-Trade, Quoted, at cost)
Amount in (`)
31-Mar-14 31-Mar-13
50000 (Previous year 50,000) units
UBI KBC Equity Fund Growth of Rs. 10/- each 500,000 500,000
50000 (Previous year 50,000) units
UBI KBC Equity Fund Growth of Rs. 10/- each 500,000 500,000
Total 1,000,000 1,000,000
ParticularsAs at
Note: All the above units are fully paid up.
Aggregate amount of unquoted investments - -
1,000,000 1,000,000
Market Value of quoted investment 1,226,000 1,047,000
Aggregate amount of quoted investments
31-Mar-14 31-Mar-13
(As taken, valued & certified by the Management)
Project-in-Progress (Refer Note No. 25) 2,556,117,400 1,716,856,870
Finished goods of Constructed Properties 163,199,426 134,905,926
Building Material at Site 5,448,185 17,216,190
Total 2,724,765,011 1,868,978,986
ParticularsAs at
17. InventoriesAmount in (`)
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
82
18. Trade ReceivablesAmount in (`)
31-Mar-14 31-Mar-13
(Unsecured, considered good unless otherwise stated)
i. Debts outstanding for a period exceeding six months 150,027,492 80,930,612
ii.Others 255,401,981 523,197,966
Total 405,429,473 604,128,578
ParticularsAs at
19. Cash & Bank BalancesAmount in (`)
31-Mar-14 31-Mar-13
(A) Cash & Cash Equivalents Cash in hand 7,117,718 11,014,287 Balances with Schedule banks -in current accounts 84,629,062 40,365,689 -in deposit accounts (refer note no 19.1) 3,477,832 51,852,176
(B) Other Bank Balances -in deposit accounts (refer note no 19.1) 52,743,255 21,804,343
Total 147,967,867 125,036,495
ParticularsAs at
19.1
Particulars
FDR Balances with Bank Total Kept as margin
Money against
bank guarantees &
Bank Over draft
Free from
any lien
Total Kept as margin
Money against
bank guarantees &
Bank Over draft
Free from
any lien
Deposit Account with Bank
-Upto 3 months maturity from date of
acquisition
3,477,832 3,477,832 - 51,852,176 1,852,176 50,000,000
Shown as Cash Equivalent 3,477,832 3,477,832 - 51,852,176 1,852,176 50,000,000
-Upto 12 months maturity from date of
acquisition
6,826,876 6,826,876 - 9,494,843 9,494,843 -
-Maturity more than 12 months but
within one year from the reporting date
45,916,379 45,916,379 - 12,309,500 12,309,500 -
Shown as Current Assets 52,743,255 52,743,255 - 21,804,343 21,804,343 -
-Maturity more than 12 months but after
one year from the reporting date
8,460,305 8,460,305 - 42,295,359 42,295,359 -
Shown as Non-Current Assets 8,460,305 8,460,305 - 42,295,359 42,295,359 -
Total 64,681,392 64,681,392 - 115,951,878 65,951,878 50,000,000
As at 31- Mar- 2014 As at 31- Mar- 2013
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
83
20. Short-Term Loans & Advances (Unsecured considered good)
31-Mar-14 31-Mar-13
Loans to Related Parties*
- to ultimate holding Company 249,066,126 -
- to holding Company 131,156,874 156,951,601
- to Other related parties 1,920,290 -
Loans to Others 198,513,442 268,163,831
Advance for Future Projects 515,783,515 85,504,580
Advance Recoverable in Cash or in
kind or for Value is to be received 3,682,408 17,737,230
Income Tax Paid under protest 655,660 655,660
Security Paid 360,000 -
Balance with excise and sales tax 28,407,781 -
Advance to Suppliers/Contractors 263,778,773 227,735,113
Total 1,393,324,869 756,748,015
ParticularsAs at
Amount in (`)
*Also refer Note No 36
21. Other Current Assets
Amount in (`)
31-Mar-14 31-Mar-13
Interest Accrued on Fixed Deposits 6,108,517 3,848,306
Unbilled revenue 115,788,774 324,703,661
Prepaid Expenses 2,945,074 2,542,018
Advance Income tax (Net of Income Tax) 937,892 -
Advance Others 5,076,856 4,643,717
Total 130,857,113 335,737,702
ParticularsAs at
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
84
24. (Increase)/Decreease in InventoriesAmount in (`)
31-Mar-14 31-Mar-13
Opening Stock 134,905,926 59,222,960
Closing Stock 163,199,426 134,905,926
Total (28,293,500) (75,682,966)
ParticularsFor the year ended
25. Cost of Sale of Developed PropertiesAmount in (`)
31-Mar-13
1,716,856,870 1,691,559,790
26,234,375 5,855,403 (12,512,013) 400,000 65,564,994 15,098,023
426,247,538 417,546,110 770,640,047 984,366,599
32,388,366 31,600,576 165,072,977 247,393,267
338,657 207,946
7,897,961 12,978,948
3,198,729,772 3,407,006,662
1,018,602,829 1,690,149,792
375,990,457 -
2,556,117,400 1,716,856,870
For the year ended
31-Mar-14
Cost of Construction /ProjectsBalance as per last year Add: incurred during the year
Cost of land Amount paid to collaborators Govt. Charges
Building Material Consumed Construction Cost
Employee Cost Finance Cost Depreciation
Other Expenses
Less: -Cost of Projects charged to Statement of Profit & Loss A/c
-Cost of Projects transferred from Holding Co.
Balance Carried to Balance Sheet
Particulars
23. Other IncomeAmount in (`)
31-Mar-14 31-Mar-13
Interest received 76,985,541 18,691,067 Rent Received 161,200 161,200
Reversal of provisions for diminution in the value of investment - 35,000 Profit on sale of investments - 30,223
Other Non-operating Income 960,041 3,528,228
Total 78,106,782 22,445,718
ParticularsFor the year ended
22. Revenue from Operations
31-Mar-14 31-Mar-13
Sale of Constructed Properties/Plots/Land 1,024,721,926 1,551,640,477 Sale of Securities held for sale - 151,741,280 Other Operating Income 59,319,678 99,710,181
Total 1,084,041,604 1,803,091,938
ParticularsFor the year ended
Amount in (`)
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
85
26. Employee Benefit ExpenseAmount in (`)
31-Mar-14 31-Mar-13
Salaries, Wages, allowances and bonus 38,884,132 35,618,849
Contribution to Provident fund & Other funds 2,421,099 2,392,300
Provision for Employee's benefits (Refer Note No.34) 534,238 435,344
Staff Welfare Expenses 1,256,441 1,573,314
43,095,910 40,019,807
Less: Allocated to Projects 32,388,366 31,600,576
Total 10,707,544 8,419,231
ParticularsFor the year ended
27. Financial ExpensesAmount in (`)
31-Mar-14 31-Mar-13
Interest on:
-Term Loans 158,675,153 143,456,105
-Cash Credit/Overdraft 13,510 12,775,681
-EDC/IDC 18,144,220 81,525,103
-Other 5,512,399 1,656,114
Interest on Income tax 118,487 365,258
Bank and other Financial Charges 19,208,250 19,179,277
201,672,019 258,957,538
Less: Allocated to Projects 165,072,977 247,393,267
Total 36,599,042 11,564,271
ParticularsFor the year ended
28. Depreciation and AmortisationAmount in (`)
31-Mar-14 31-Mar-13
Depreciation 7,198,582 6,943,473
Amortisation - 231,396
7,198,582 7,174,869
Less: Allocated to Projects 338,657 207,946
Total 6,859,925 6,966,923
ParticularsFor the year ended
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
86
29. Other ExpensesAmount in (`)
31-Mar-14 31-Mar-13
Rent 1,809,882 3,210,820
Insurance 791,065 791,096
Repairs and Maintenance - others 1,212,045 1,518,041
Electricity & Water Expenses 2,780,808 4,961,259
Vehicle Running & Maintenance 1,101,120 779,722
Rate & Taxes 65,663 -
Legal & Professional Charges 3,403,407 3,795,415
Payment to Auditors (Refer Note no. 29.1) 1,195,117 1,244,050
Travelling & Conveyance 2,943,472 2,834,184
Printing & Stationery 754,427 1,525,011
Postage, Telegram & Telephone 1,535,353 2,117,470
Security , CAM charges & Housing Keeping 3,420,541 2,542,563
Donation 1,520,100 1,758,751
Loss on Sale of Fixed Assets 802,594 92,080
Prior Period Expenses 331,089 73,306
Other Expenses 5,306,909 2,746,840
Business Promotion 1,976,062 2,308,616
Commission 28,200,206 43,911,461
Advertisement & Publicity 2,531,781 14,758,695
61,681,641 90,969,380
Less: Allocated to Projects 7,897,961 12,978,948
Total 53,783,680 77,990,432
ParticularsFor the year ended
29.1 Payment to AuditorsAmount in (`)
31-Mar-14 31-Mar-13
-As Auditors 898,880 898,880
-For Taxation Matters 224,720 224,720
-For Reimbursement of Expenses 71,517 120,450
Total 1,195,117 1,244,050
ParticularsFor the year ended
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
87
2013-14 2012-13 2013-14 2012-13
9.00% 8.20% 9.00% 8.20%
6.50% 5.50% 6.50% 5.50%
NA NA NA NA
27.13 27.54 27.13 27.54
GratuityParticulars
Salary increase (taking into account inflation, seniority, promotion and other relevant factor)
Expected Rate of Return on Plan Assets
Average Outstanding Service of Employees upto retirement (years)
Earned Leave
Discount Rate (based on the market yields available on Government bonds at the accounting date with term that matches that of the liabilities)
a. Particularsst As at 31
March 2014
stAs at 31
March 2013
Contingent Liabilities
11,540,956 18,227,000 - Outstanding Bank Guarantees 148,328,330 163,851,000
- Corporate Guarantee on behalf of Holding Company 724,400,000 724,400,000
- Corporate Guarantee to Body Corporate 250,000,000 250,000,000
- Taxation Matters 1,311,312 1,311,312
Commitments
- Capital Commitments: Nil Nil Estimated amount of contracts remaining to be executed
on capital account and not provided for
- Contingent Liabilities not provided for in respect of Legal Matters'
30 Contingent Liabilities & Commitments
Amount in (`)
b. The Company has during the year received notice from Excise & Taxation commissioner, Haryana, seeking to impose VAT on the transaction of sale of flats, floors & villas during or before construction for the year 2010-11 to 2012-13. The Company has challenged the view of Excise & Taxation Department and has filed a Civil Writ Petition before the High Court for the States of Punjab and Haryana contemplating that VAT is not applicable on real estate developers under HVAT Act.
However, if any demand is imposed in respect of levy of Sales tax on above transaction, the company is entitled to recover the same from the customers to whom flats have been sold or with whom agreement for sale have been entered into. Hence, VAT if levied, shall not impact the revenue of the Company
31. In the opinion of the management, the value on realization of current assets, loans & advances in the ordinary course of business would not be less than the amount at which they are stated in the Balance Sheet and provisions for all known liabilities have been made.
32. The company has entered into “Collaboration Agreement” with certain land-owners whereas the possession has been delivered to the company for development & construction of said land and marketing thereof. The payments are being made in accordance with respective Collaboration Agreements and the total cost of the same is charged to the respective projects.
33. The information regarding Micro Enterprises and Small Enterprises as required to be disclosed under Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company. Further during the year no interest has been paid or payable under the terms of the said Act.
34. Employee Benefits
a. Defined Benefit Plans :-
The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The scheme is unfunded. The Company has also provided for Leave Encashment which is also unfunded.
The following tables summarize the components of net benefit expense recognized in the Statement of Profit & Loss and amounts recognized in stthe balance sheet for the respective plans (as per Actuarial Valuation as on 31 March 2014).
The principal assumptions used in determining gratuity and leave liability for the Company's plans are shown below:
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
88
Amount in (`)
2013-14 2012-13 2013-14 2012-13
531,355 453,365 1,402,767 1,045,413
- - - -
47,822 37,176 126,249 85,724
- - - -
197,663 178,446 495,531 433,423
- - - -
- - - -
- - - -
(144,700) (137,632) (188,327) (161,793)
632,140 531,355 1,836,220 1,402,767
Gratuity
Current Service Cost
Curtailment Cost/ (credit)
Settlement Cost/ (credit)
Particulars
Present Value of Defined Benefit Obligation at the beginning of the year
Earned Leave
Present Value of Defined Benefit Obligation at the end of the year
Acquisition Adjustment
Interest Cost
Past Service Cost
Benefits Paid
Actuarial (gain) / loss on obligation
stNet Asset / (Liability) recognized in the Balance Sheet as on 31 March 2014:
2013-14 2012-13 2013-14 2012-13
632,140 531,355 1,836,220 1,402,767
- - - -
(632,140) (531,355) (1,836,220) (1,402,767)
- - - -
- - - -
(632,140) (531,355) (1,836,220) (1,402,767)
Gratuity
Present Value of Defined Benefit Obligation at the end of
the year
Fair Value of Plan Assets at the end of the year
Funded Status / Difference
Earned LeaveParticulars
Net Asset / (Liability) recognized in the Balance Sheet
Excess of Actual over estimated
Unrecognised Actuarial (Gains)/ Losses
stNet Employees Benefit Expense (recognized in the Statement of Profit & Loss for the year ended 31 March 2014:
Amount in (`)
2013-14 2012-13 2013-14 2012-13
197,663 178,446 495,531 433,423
- - - -
47,822 37,176 126,249 85,724
- - - -
- - - -
- - - -
(144,700) (137,632) (188,327) (161,793)
100,785 77,990 433,453 357,354
Interest Cost
Gratuity
Curtailment Cost/ (credit)
Settlement Cost/ (credit)
Net actuarial (gain) / loss recognized in the year
Expected return on plan assets
Expenses recognized in the statement of Profit & Loss
Earned LeaveParticulars
Current Service Cost
Past Service Cost
stBifurcation of Obligation at the end 31 March 2014 :
Amount in (`)
2013-14 2012-13 2013-14 2012-13
19,432 32,376 45,492 73,589
612,708 498,979 1,790,728 1,329,178
632,140 531,355 1,836,220 1,402,767
Particulars
Current Liability (Short Term)
Non Current Liability (Long Term)
Total
Earned Leave Gratuity
Amount in (`)
Changes in the present value of Defined Benefit Obligation are as follows:
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
89
b) Contribution to Defined Contribution Plans :
Particulars
2013-14 2012-13
Provident Fund & Other Funds 2,421,099 2,392,300
Amount
35 Segment Reporting
The Company is primarily engaged in the business of promotion, construction, development of integrated townships, and residential and commercial complexes in the various parts of the country, which as per Accounting Standard-17 on “Segment Reporting” is considered to be the only reportable business segment. The Company is operating in the same geographical segment.
36 Related Party Disclosure
As per Accounting Standard (AS)-18 “Related Party Disclosures”, the Company’s related parties and transactions are disclosed below:
a. List of related parties & relationships, where control exists:
Ultimate Holding Company
BTL Holding Company Limited
(formerly known as BTL Investments & Securities Ltd.) (w.e.f. 18.07.2013)
b. Holding Company SRS Real Infrastructure Limited
c. Fellow Subsidiaries
SRS Retreat Services Limited
SRS Automotive Components Pvt. Ltd. (formerly known as SRS I-Tech Private Limited)
Auspicious Real Estate Limited (from 03.05.2013)
Grand Realtech Limited (from 18.04.2013)
Nav Nirman Realtech Limited (from 27.04.2013)
SRS Natural Resources Limited (from 18.04.2013)
d. Subsidiary of Ultimate Holding Company SRS Limited (from 18.7.2013)
e. Associatesth SRS Professional Services Limited (upto 18 October 2012)*
th SRS Hitech Project Limited (Formerly known as SRS Components (India) Limited) (upto 18 October 2012)*
f. Related parties & relationships
i. Key Management Personnel Mr. Vinod Jindal - Whole Time Director Mr. Rajesh Singla - Whole Time Director** Mr. Nanak Chand Tayal - Whole Time Director
ii Enterprises owned or significantly influenced by KMP and/or their Relatives
SRS Finance Limited
SRS Limited (till 17.7.2013)
SRS Global Securities Limitedth * ceased to be associated w.e.f. 18 October 2012, hence transactions for the current year are not required to be disclosed.
** ceased to be whole time director w.e.f 18th Feb., 2014
Amount in (`)
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
90
g) Transactions with related Parties :
Amount in (`)
S. No. Name of the Party Nature 2013-14 2012-13
1 BTL Holding Company Limited 16,390,059 35,487,764 35,338,105
249,066,126 268,163,831
2 SRS Real Infrastructure Ltd. Expense 207,711 - Income 60,000 60,000 Assets 541,743,074 679,855,828 Assets 567,466,680 529,049,449 Liability 10,051,199 Income 25,484,834 6,828,025 Liability 410,000 Expense 1,064,802 Expense 18,299,092 22,333,224
Assets 375,990,457
Liability 375,371,169
Assets 131,227,995 156,951,601 Assets 266,117 Liability 2,105,663 1,349,000
90,842,500 90,842,500
724,400,000 724,400,000 3,264,900,000 2,004,900,000
3 SRS Retreat Services Limited Expense 26,234,375 Income 917,656
Income 34,695
Expense 4,427,240
2,004,900,000 2,004,900,000 Assets 948,881
4 SRS Finance Limited Expense 60,000 60,000 Expense 175,843
250,000,000 250,000,000
5 SRS Limited Assets 122,600 2,128,959 Expense 478,781 Expense 3,219,105 8,948,161 Expense 1,700,000
Liability - 102,360 Liability 489,122
Nature of Transaction
Reimbursement of Expenses
Rent Received
Trade Payables
Advance received
Rent Paid
Reimbursement of expenses
Office Rent (Net of Service tax)
Purchase of Fixed Assets
Closing Balance
Purchase of Land
Off Balance Sheet Items
Corporate Guarantee given
Off Balance Sheet item
Interest Income
Loan & Advance received back
Loan Repaid
Loan & Advance given
Closing Balance
Purchase of Materials
Interest Income
Payment made on our behalf
Loan & Advance given (including interest)
Rent Paid
Reimbursement of Expenses
Trade Payables
Closing Balance:
Corporate Guarantee taken
Loan & Advance given
Loan & Advance given (including interest)
Advance to Supplier
Bank Guarrantee Taken
Corporate Guarantee taken
Transfer of Current Liabilities from Holding Company
Transfer of Current Assets from Holding Company
Loan & Advance givenLoan & Advance received backInterest Income
Closing Balance:
Loan & Advance given (including interest)
Corporate Guarantee given
Loan taken
cam charges
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
91
Amount in (`)
S. No. Name of the Party Nature 2013-14 2012-13Nature of Transaction
6 SRS Global Securities Limited Income 151,741,280
Loan Taken 6,030,000
Loan Repaid 6,030,000 Assets 123,372,500 Assets 122,401,091 Income 1,079,343
971,409 Assets 98,736,280 151,741,280
7 SRS Hitech Projects Limited Assets 32,400,000
30,100,000
Assets 2,300,000
8 Mr. Vinod Jindal Expense 1,435,668 1,494,348
Liability 119,639 114,749
9 Mr. Rajesh Singla Expense 612,157 720,660
Liability 52,221
10 Mr. Nanak Chand Tayal Expense 690,216 720,660
Trade Receivables
Advance given for future projects
Payment received against advance given
Closing Balance
Advance recoverable against future
Director’s Remuneration
Closing Balance
Amount Payable
Director’s Remuneration
Closing Balance
Amount Payable
Director’s Remuneration
Interest Income
Closing Balance
Sale of Securities
Loan & Advance given
Loan & Advance received back
Loan & Advance given (including interest)
Closing Balance
Amount Payable
37. In accordance with Accounting Standard "AS-19 on Leases" the following disclosures in respect of operating leases is made as under:
A. Assets taken on operating lease:
a) The Company has taken an office on non-cancellable operating lease.
b) Sub-lease payments recognised in P&L Account amounting ₹ 18,09,882 (PY ₹ 32,10,820)
c) Future commitments in respect of minimum lease payment payable in respect of aforesaid lease entered by the Company are as follows:
As at 31.03.2014
As at 31.03.2013
871,200 2,803,831
- 4,316,728
- 165,000
Particulars
a) Not later than one year
b) Later than one year and not later than five years
c) Later than five years
Amount in (`)
B. Assets given on operating lease:
a) The Company has not given an property/office on operating lease.
38. “Earning per Share” computed in accordance with Accounting Standard (AS)-20 “Earning Per Share” :
Liability 57,518 52,721
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
92
Amount in (`)
31-Mar-14 31-Mar-13
a) Numerator:Net Profit after taxation as per Statement of Profit & Loss 9,945,558 8,808,724
b) Denominator:
Weighted average no. of equity shares for the year 16,763,312 15,793,449
Weighted average no. of diluted equity shares for the year 16,763,312 16,763,312
c) Face Value per share (in Rs.) 10 10
d) Earning per Share (EPS):
-Basic (in Rs.) 0.59 0.56
-Diluted (in Rs.) 0.59 0.53
Particulars For the year ended
39 Previous period figures have been regrouped / rearranged and reclassified wherever necessary.
40 All amounts in the financial statements are presented in Rupees and rounded off to nearest rupee.st41 Note 1 to 40 are annexed to and form an integral part of Balance Sheet as at 31 March 2014 and Statement of Profit & Loss for
the year ended as on that date.
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
93
For S S Kothari Mehta & Co.Chartered AccountantsFirm Regn. No. 000756N
For and on behalf of the Board
(Ruchi Jain)Partner
M.No. 099920
(Vinod Jindal)Whole-Time Director & CFO
DIN No. 00005563
(Nanak Chand Tayal)Whole-Time DirectorDIN No. 00013681
Place: FaridabadthDate : 27 May, 2014
(Rajesh Singla)Director
M.No. 00009745
(Rekha Chauhan)Company Secretary
M.No. 29951
(Yogesh K. Gupta)Partner
M.No. 093214
For Rakesh Raj & AssociatesChartered AccountantsFirm Regn. No. 005145N
New Delhi« «
I MR EA HH TT A O &K C. OS. .S
Consolidated Balance Sheet
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
94
Independent Auditors' Report
To,The Board of Directors,SRS Real Infrastructure LimitedFaridabad
Report on the Consolidated Financial Statements
We have audited the accompanying consolidated financial statements of SRS Real Infrastructure Limited, (“the Company”) and its subsidiaries, associates and joint ventures (hereinafter collectively referred to as the “Group”), which comprise the consolidated Balance Sheet as at March 31, 2014, and the consolidated Statement of Profit and Loss and consolidated Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.
Management's Responsibility for the Consolidated Financial Statements
Management is responsible for the preparation of these consolidated financial statements that give a true and fair view of the consolidated financial position, consolidated financial performance and consolidated cash flows of the Group in accordance with accounting principles generally accepted in India. This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the consolidated financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditors' Responsibility
Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditors' judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company's preparation and presentation of the consolidated financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the explanations given to us and based on the consideration of the reports of the other auditors on the financial statements of the subsidiaries and joint ventures as noted below, the consolidated financial statements give a true and fair view in conformity with the accounting principles generally accepted in India:
I) in the case of the consolidated Balance Sheet, of the state of affairs of the Group as at March 31, 2014;
ii) in the case of the consolidated Statement of Profit and Loss, of the profit for the year ended on that date; and
iii) in the case of the consolidated Cash Flow Statement, of the cash flows for the year ended on that date.
Other Matter
We did not audit the financial statements of an associate wherein the group's share of profit of Rs. 327,670 included in the consolidated financial statement of the company. These financial statements have been audited by other auditor whose report has been furnished to us and our opinion is based solely on the report of other auditor.
Financial statements of certain subsidiaries and jointly controlled entity which reflect total assets (net) of Rs. 5,316,246,490 as at March 31, 2014, total revenue (net) of Rs. 1,210,311,569 and net cash flows amounting to Rs.11,541,970 for the year then ended, have been audited by one of us or jointly by one of us with other auditor.
Our opinion is not qualified in respect of these matters.
For Naresh Jai & Associates Chartered Accountants Firm Reg. No. 019082N
Naresh Goyal Partner Membership No.501487
For S S Kothari Mehta & Co. Chartered Accountants Firm Reg. No. 000756N Yogesh Gupta Partner Membership No.093214 Place : Faridabad Date : May 28, 2014
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
95
EQUITY AND LIABILITIESShareholder's funds
Share capital 3 201,016,000 201,016,000 Reserves and surplus 4 2,062,678,026 2,012,500,915
2,263,694,026 2,213,516,915
Non-current liabilitiesLong-term borrowings 5 1,895,572,911 816,466,320
Deferred tax liability (net) 6 24,656,650 10,672,055
Other long term liabilities 7 61,673,059 75,124,308
Long-term provisions 8 3,946,219 2,965,511
1,985,848,839 905,228,194 Current liabilities
Short-term borrowings 9 1,216,943,360 1,087,245,572
Trade payables 10 276,168,807 306,394,280
Other current liabilities 11 3,219,135,400 3,527,504,397 Short-term provisions 12 70,460,167 175,586,672
4,782,707,734 5,096,730,921
Total 9,032,250,599 8,215,476,030
ASSETS
Non-current assets
Fixed Assets
Tangible assets 13.1 696,872,773 537,120,963
Intangible assets 13.313.2
5,767,518 6,412,286
Capital work in progress 274,923,036 227,620,318
977,563,327 771,153,567 Non-current investments 14 58,700,860 -
Long-term loans and advances 15 84,540,038 24,824,225
Other non-current assets 16 46,985,229 94,414,335
1,167,789,454 890,392,127
Current assets
InventoriesCurrent investments
1817
3,957,513,1081,000,000
3,274,007,9381,000,000
Trade receivables 19 1,783,160,184 2,225,977,297
Cash and bank balances 20 295,454,873 232,681,230
Short-term loans and advances 21 1,593,496,928 1,190,518,912
Other current assets 22
2
233,836,052 400,898,526
7,864,461,145 7,325,083,903
Total 9,032,250,599 8,215,476,030
PARTICULARS Note No. As at
March 31,2014As at
March 31,2013
Consolidated Balance sheet as at March 31, 2014 Amount in `
Significant Accounting Policies
The accompanying notes 1 to 46 form an integral part of the consolidated financial statements
As per our report of even date attached
For S S Kothari Mehta & Co.Chartered AccountantsFirm Reg. No. 000756N
(Yogesh Gupta)PartnerM.No. 093214
Place : FaridabadDate : May 28, 2014 (Shweta Marwah)
Company SecretaryM.No. 18730
For Naresh Jai & AssociatesChartered AccountantsFirm Reg. No. 019082N
(Naresh Goyal)PartnerM.No. 501487
For and on behalf of the board of directors
(Jitender Kumar Garg)Managing Director
DIN : 00088125
(Rajesh Singla)WTD & CFO
DIN : 00009745
(Dr. Anil Jindal)Chairman
DIN : 00005585
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
96
2
PARTICULARS Note No. For the year ended
March 31,2014For the year ended
March 31,2013
Consolidated Statement of profit and loss for the year ended March 31, 2014 Amount in `
Significant Accounting Policies
The accompanying notes 1 to 46 form an integral part of the consolidated financial statements
REVENUE
Net revenue from operations
Gross revenue from operations
23 9,503,002,365
9,505,218,416
10,484,016,001
10,491,557,013
Other income
Less: Excise Duty
24 70,746,089
2,216,051
35,113,377
7,541,012
Total Revenue 9,573,748,454 10,519,129,378
EXPENSES
Cost of materials consumed 25 62,738,512 179,188,182
Cost of sale of developed properties 26 1,604,128,902 2,796,457,866
Purchase of stock-in-trade 27 7,603,884,003 7,255,903,957
Change in inventory 28 (257,881,867) (168,328,936)
Employee benefits expense 29 31,337,318 25,848,009
Financial expenses 30 234,706,627 139,909,092
Depreciation and amortisation expenses 31 23,681,827 22,130,722
Other expenses 32 196,987,702 170,533,711
9,499,583,024
10,421,642,603
Profit before tax and share of profit/(loss) in associate 74,165,430
97,486,775
Tax expense :
Current tax 18,226,874
33,132,420
Deferred tax 13,984,595
2,948,365
MAT credit entitlement (5,838,148) (48,730)
Earlier year tax (2,057,332)
348,963
Total tax expense 24,315,989
49,849,441
327,670
36,381,018
61,105,757
-
Profit before share of profit/(loss) in associate
Share of profit/(loss) in associate
Net profit for the year 50,177,111 61,105,757
Earning per share
Face value per equity share (in Rs.) 1.00 1.00
Basic & diluted (in Rs.)
33
0.25
0.30
As per our report of even date attached
For S S Kothari Mehta & Co.Chartered AccountantsFirm Reg. No. 000756N
(Yogesh Gupta)PartnerM.No. 093214
Place : FaridabadDate : May 28, 2014 (Shweta Marwah)
Company SecretaryM.No. 18730
For Naresh Jai & AssociatesChartered AccountantsFirm Reg. No. 019082N
(Naresh Goyal)PartnerM.No. 501487
For and on behalf of the board of directors
(Jitender Kumar Garg)Managing Director
DIN : 00088125
(Rajesh Singla)WTD & CFO
DIN : 00009745
(Dr. Anil Jindal)Chairman
DIN : 00005585
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
97
PARTICULARSFor the year ended
March 31,2014For the year ended
March 31,2013
Consolidated Cash Flow Statement for the year ended March 31,2014
Amount in `
A Cash flow from operating activities Profit before tax 74,165,430 97,486,773 Adjustment for: Depreciation and amortisation expenses 24,225,069 22,130,724 Interest expense 501,836,166 139,909,092 Loss / (profit) on sale of fixed assets 2,710,266 663,745 Fixed assets written off - 1,786,730 Bad debts 296,146 249,980 Provision for doubtful debts (884,433) 6,000,000 Balances written off 4,687,719 952,547 Provision for diminution in the value of investment - (35,000) Interest income (64,064,494) (94,941,807)
Operating profit before working capital changes 542,971,869 174,202,784 Adjustment for (increase)/decrease in operating assets : Trade Receivable 407,349,248 44,893,864 Short Term Loan & Advances (405,287,704) 656,252,890 Long Term Loan And Advances (59,715,813) (11,188,218) Other Current Assets 181,239,513 368,448,724 Inventories (604,958,093) 1,189,033,947
(481,372,849) 2,247,441,207 Adjustment for increase/(decrease) in operating liabilities : Trade Payables 2,348,613 (1,351,015,917) Long Term Provisions 980,708 603,471 Other Long-Term Liabilities (13,451,250) 6,124,308 Other Current Liabilities (378,902,838) 321,649,647 Short Term Provisions (61,823,341) 122,211,969
(450,848,108) (900,426,522)
Cash (used in)/from operations (389,249,088) 1,521,217,469
Direct taxes paid (35,954,839) (48,476,232)
Net cash flow (used in)/from operating activities (425,203,927) 1,472,741,237
B Cash flow from investing activities (Purchase) of fixed assets (383,826,944) (1,150,841,257) Proceeds from sale of fixed assets 52,837,881 34,006,571 (Purchase) of investments (58,373,190) - Proceeds from sale of investments - 1,000,000 Investment in Fixed Deposits (15,659,245) (42,853,734) Interest received 55,513,814 110,527,346
Net cash flow from/ (used in) investing activities (349,507,684) (1,048,161,074)
C Cash flow from financing activities Proceeds from long term borrowings 1,751,124,019 264,706,184 Repayments of long term borrowings (592,981,023) (815,184,380) Proceed from short term borrowings (net) 138,727,788 367,570,926 Dividend paid (23,517,867) (23,362,582) Interest paid (498,971,875) (146,299,055)
Net cash flow from/ (used in) financing activities 774,381,042 (352,568,907)
Net increase/ (decrease) in cash and cash equivalent (A+B+C) (330,569) 72,011,256
Cash and cash equivalent at the beginning of the year 175,877,031 103,865,775 Cash and cash equivalent at the end of the year 175,546,462 175,877,031
Net increase/ (decrease) in cash and cash equivalent (330,569) 72,011,256
The accompanying notes 1 to 46 form an integral part of the consolidated financial statements
As per our report of even date attached
For S S Kothari Mehta & Co.Chartered AccountantsFirm Reg. No. 000756N
(Yogesh Gupta)PartnerM.No. 093214
Place : FaridabadDate : May 28, 2014 (Shweta Marwah)
Company SecretaryM.No. 18730
For Naresh Jai & AssociatesChartered AccountantsFirm Reg. No. 019082N
(Naresh Goyal)PartnerM.No. 501487
For and on behalf of the board of directors
(Jitender Kumar Garg)Managing Director
DIN : 00088125
(Rajesh Singla)WTD & CFO
DIN : 00009745
(Dr. Anil Jindal)Chairman
DIN : 00005585
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
98
Summary of significant accounting policies and other explanatory notes
1 Consolidation of Accounts:
1.1 Overview of the Group
SRS Real Infrastructure Limited (‘SRIL’ or the ‘Company’), was originally incorporated as private limited Company in the name and style of “Manu Leasing Private Limited” with the Registrar of Companies, NCT of Delhi and Haryana vide certificate of incorporation dated June 26, 1990. Subsequently, the Company was converted into Limited Company vide fresh certificate of incorporation dated December 30, 1994. Further the name of the Company was changed to “Manu Finlease Limited” pursuant to a fresh certificate of incorporation dated March 9, 1995 and again changed to “Manu Leasing Limited” on November 19, 1997. Subsequently, the name of the company was changed to “SRS Real Infrastructure Limited” vide fresh certificate of incorporation dated March 28, 2007.
The company operates together with its subsidiaries, joint ventures and associates(collectively referred to as the 'Group') as a real estate developer primarily covering residential and commercial projects. The operations of the group span all aspects of real estate development, from the identification and acquisition of land, to the planning, execution and marketing of the projects. The group is also into trading of building material and manufacturing of RMC. The Company’s registered office is situated at SRS Multiplex, Top Floor, City Centre, Sector-12, Faridabad-121007.
1.2 Basis of preperation
Consolidated Financial Statements are prepared to comply in all material respects with all the applicable accounting principles in India, the applicable accounting standards notified under section 211(3C) of the Companies Act, 1956 read with general circular 15/2013 dated 13.09.2013 of the Ministry of Corporate Affairs in respect of section 133 of the Companies Act 2013 and the relevant provisions of the Companies Act, 1956. The accounting policies have been consistently applied by the group and are consistent with those used in the previous year.
1.3 Principles of consolidation
The consolidated financial statements include the financial statements of the parent company, its subsidiaries, joint venture and the associate companies. The consolidated financial statements have been prepared in accordance with Accounting Standard (AS-21) on “Consolidated Financial Statements”, Accounting Standard (AS-27) on “Financial reporting of interest in joint ventures” and Accounting Standard (AS-23) on "Accounting for Investments in Associates in Consolidated Financial Statements"notified pursuant to the Companies (Accounting Standards) Rules, 2006 issued by the Central Government in exercise of the power conferred under sub-section (I) (a) of section 642 of the Companies Act, 1956 (the ‘Act’). The consolidated financial statements are prepared on the following basis:
a) The financial statements of the parent company and its subsidiary companies are combined on a line-to-line basis by adding together the book values of like items of assets, liabilities, income and expenses, after fully eliminating intra-group balances and intra-group transactions and resulting unrealised profit or loss.
The financial statements of the parent company and its subsidiaries have been consolidated using uniform accounting policies for like transactions and other events in similar circumstances, except otherwise stated.
b) The excess of the share of the equity in the respective subsidiary over and above the cost of its investments in each of the subsidiaries to the parent company on the acquisition date is recognised in the financial statements as capital reserve and carried forward in the accounts.
c) The company’s share of assets, liabilities, income and expenses of the joint ventures are consolidated using the proportionate consolidation method. Intra-group balances, intra-group transactions and unrealised profits are eliminated to the extent of company’s proportionate share.
d) Investments in associates are accounted for using the equity method. The excess of cost of investment over the proportionate share in equity of the associate as at the date of acquisition of stake is identified as goodwill and included in the carrying value of the investment in the associate. The carrying amount of the investment is adjusted thereafter for the post acquisition change in the share of net assets of the associate. However, the share of losses is accounted for only to the extent of the cost of investment. Subsequent profits of such associates are not accounted for unless the accumulated losses (not accounted for by the Group) are recouped. Where the associate prepares and presents consolidated financial statements, such consolidated financial statements of the associate are used for the purpose of equity accounting. In other cases, standalone financial statements of associates are used for the purpose of consolidation.
e) Notes to consolidated financial statements, represents notes involving items which are considered material and are accordingly duly disclosed. Materiality for the purpose is assessed in relation to the information contained in the consolidated financial statement. Further, additional statutory information disclosed in separate financial statments of the subsidiary and/ or a parent having no bearing on the true and fair view of the consolidated.
f) The financial statements of the entities used for the purpose of consolidation are drawn up to the same reporting date as that of the company i.e. year ended 31st March, 2014
g) List of subsidiary companies which are included in the consolidation and the parent company's holding therein are as under:
March 31, 2014 March 31, 2013
100% 100% India100% 100% India100% 100% India
100% - IndiaGrand Realtech Limited 100% - India
100% - India100% - India
SRS Retreat Services LimitedSRS Real Estate Limited
Name of the Company
% of shareholding and voting power as on
Place of incorporation
SRS Automotive Components Private Limited (Formerly known as SRS I-Tech Private Limited)
SRS Natural Resources Limited (Formerly known as Arihant Dham Construction Limited)
Nav Nirman Realtech LimitedAuspicious Real Estate Limited
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
99
h) List of jointly controlled entities which are included in the consolidation and the parent company's holding therein are as under:
2 Significant accounting policies
2.1 Basis of accounting
The financial statements are prepared under historical cost convention, on accrual basis, in accordance with the generally accepted accounting principles in India and to comply with the Accounting Standards prescribed in the Companies (Accounting Standards) Rules, 2006 issued by the Central Government in exercise of the power conferred under sub-section (I) (a) of section 642 of the Companies Act, 1956 (the ‘‘Act’’), the relevant provisions of the Act and other pronouncements of Institute of Chartered Accountants of India (ICAI) to the extent applicable. All assets and liabilities have been classified as current or non-current, as per the operating cycle, wherever applicable, of the Group or other criteria, as per the guidance set out in the Revised Schedule VI to the Companies Act, 1956.
2.2 Use of estimates
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities on the date of the financial statements and the results of operations during the reporting periods. Although these estimates are based upon management’s knowledge of current events and actions, actual results could differ from those estimates and revisions, if any, are recognised in the current and future periods.
2.3 Revenue recognition
a) Revenue from sale of land and plots (held for resale) is recognised in the financial year in which the transfer is made by written agreement to sell/registration of sale deed or otherwise in favour of parties when the significant risk and reward of the ownership are transferred and there is a certainty of realisation of the consideration.
b) Revenue from sale of constructed properties is recognised on the “Percentage of Completion method” of accounting. Sale consideration receivable as per the allotment letters/agreements to sell entered into for constructed properties is recognised as revenue on the basis of percentage of actual project costs incurred thereon to total estimated project cost, subject to such actual cost incurred being 25 per cent or more of the total estimated project cost. Project cost includes cost of land (including development rights), government charges, construction costs and development/ construction materials of such properties, estimated internal development charges, external development cost. The estimates of the saleable area and costs are reviewed periodically by the management and any effect of changes in estimates is recognised in the year such changes are determined. However, when the total project cost is estimated to exceed total revenues from the project, the loss is recognised immediately.
With effect from April 01, 2012 in accordance with the Revised Guidance Note issued by Institute of Chartered Accountants of India (“ICAI”) on “Accounting for Real Estate transactions (Revised 2012)”, the Group revised its accounting policy of revenue recognition for all projects commencing on or after April 01, 2012 or project where the revenue is recognised for the first time on or after the above date. As per this guidance note, the revenue have been recognised on percentage of completion method provided all of the following conditions are met at the reporting date.
i. atleast 25% of estimated construction and development costs (excluding land cost) has been incurred,
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)
iii. and atleast 10% of the total revenue as per agreement to sell are realised in respect of these agreements
iv. all critical approvals necessasry for commencement of the project have been obtained
c) Revenue from sale of traded and manufactured goods is recognised upon transfer of significant risks and rewards incident to ownership and when no significant uncertainty exists regarding realisation of the sale consideration. Sales are recorded net of sales returns, rebates, trade discounts and price differences and are inclusive of excise duty.
d) Interest income, other than interest recovered from the customers, is accounted for on time proportion basis taking into consideration the amount outstanding and rate applicable
e) Dividend income on investment is accounted for when the right to receive the payment is established.
f) Revenue from rental contracts is recognised on pro rata basis over the period of contract as and when services are rendered.
g) Interest on delayed payments by customers against dues is taken into account on acceptance or realisation owing to practical difficulties and uncertainties involved.
March 31, 2014 March 31, 2013
50% 50% India
- 50% India
SRS Lotus Projects Pvt. Ltd
SRS RMC Gurgaon (Partnership Firm)
Name of the Company/Entity
% of shareholding and voting power as on
Place of incorporation
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
100
h) Revenue from securities held for trade is recognised on accrual basis.
I) Revenue from facility management services is recognised when services are rendered in accordance with the terms of the contract.
2.4 Unbilled receivables
Unbilled receivables represent revenue recognised based on ‘Percentage of Completion Method’ as per policy 2.3 (b) which are not due from customers as per the payment plan agreed with the customers.
2.5 Fixed assets
Tangible assets
Fixed assets are stated at historical cost less accumulated depreciation and impairment losses, if any. Cost comprises the cost of acquisition/purchase price inclusive of duties, taxes, incidental expenses, erection/commissioning expenses, interest etc. upto the date the asset is ready for its intended use. Credit of duty, if availed, is adjusted in the acquisition cost of the respective fixed assets.
Fixed asset under construction is carried at cost, comprising direct cost, related indirect expenses and interest on borrowings to the extent attributed to them.
Intangible assets
Intangible assets are recognised as per the criteria specified in Accounting Standard -26 “Intangible Assets” issued by the Institute of Chartered Accountants of India and recorded at the consideration paid for acquisition.
2.6 Depreciation/ amortisation
a) In case of Parent Company, its subsidiaries and Jointly Controlled Entities except SRS RMC Gurgaon (A Partnership Firm)
Depreciation on fixed assets is applied on straight-line basis as per the rates and manner specified in Schedule XIV to the Companies Act, 1956 on pro rata basis. Depreciation on fixed assets costing upto Rs.5,000/- is provided @100% over a period of one year.
Intangible Assets are amortised over the useful life of the assets or ten years, whichever is earlier.
Depreciation on leasehold improvements is charged over the period of lease or estimated useful life, whichever is lower.
b) In case of SRS RMC Gurgaon (A Partnership Firm):
Depreciation on fixed assets is applied on the rates and manner specified in section 32 of the Income Tax Act,1961
2.7 Borrowing costs
Borrowing costs that are directly attributable to the acquisition or construction of qualifying assets are considered as part of the cost of assets/projects. Qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are treated as period cost and charged to the statement of profit and loss in the year in which incurred.
2.8 Impairment
The Group assesses at each balance sheet date whether there is any indication that an asset may be impaired. If any such indication exists, the Group estimates the recoverable amount of the asset. If such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount and the reduction is treated as an impairment loss and is recognised in the statement of profit and loss. If at the balance sheet date there is an indication that a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount subject to a maximum of depreciated historical cost and is accordingly reversed in the statement of profit and loss.
2.9 Investments
Investments are classified as current or non current, based on management's intention at the time of purchase. Investments that are readily realisable and intended to be held for not more than a year are classified as current investments. All other investments are classified as non current investments.
Trade investments are the investments made for or to enhance the Group's business interests.
Current investments are stated at lower of cost and fair value determined on an individual investment basis. Non current investments are stated at cost and provision for diminution in their value, other than temporary, is made in the financial statements.
2.10 Inventory
Inventories comprise of projects in progress, developed properties, land held for resale, raw material and finished goods held for resale and are valued as under:
a) Projects in progress are valued at cost/ estimated cost or net realisable value, whichever is lower. Costs include land acquisition cost, estimated internal development costs, government charges towards conversion of land use/ licenses including external development charges, interest on project specific loans in accordance with policy 2.7 on borrowing costs and other related government charges and cost of development/ construction materials
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
101
b) Developed properties includes the cost of land, estimated internal development costs, government charges towards conversion of land use/ licenses including external development charges, other related government charges, construction costs, development/ construction materials, interest on project specific loans in accordance with policy 2.7 on borrowing costs and are valued at cost/estimated cost or net realisable value, whichever is less.
c) Land and plots held for resale is valued at cost or net realisable value, whichever is lower. Cost is determined on the basis of FIFO method. Cost includes purchase cost and other incidental expenses.
d) Raw materials and finished goods held for resale are valued at cost or net realisable value, whichever is lower. Cost is determined on the basis of FIFO method. Cost includes purchase cost and expenses to bring it to current locations.
e) Securities held for trade is valued at lower of cost and net realisable value.
Net realisable value is the estimated selling price in the ordinary course of business, less estimated cost to affect the sale.
Provision for obsolescence and slow moving inventory is made based on management's best estimates of net realisable value of such inventories.
2.11 Taxations
Current Tax:
Provision for Taxation is ascertained on the basis of assessable profit computed in accordance with the provisions of Income Tax Act, 1961.
Minimum Alternate Tax (MAT) Credit:
Minimum Alternate Tax credit is recognized, as an asset only when and to the extent there is convincing evidence that the group will pay normal income tax during the specified period. In the year in which the MAT credit becomes eligible to be recognized as an asset in accordance with the recommendations contained in guidance note issued by the Institute of Chartered Accountants of India, the said asset is created by way of a credit to the Statement of Profit and Loss and shown as MAT Credit Entitlement under Loans & Advances. The group reviews the same at each balance sheet date and writes down the carrying amount of MAT Credit Entitlement to the extent there is no longer convincing evidence to the effect that group will pay normal Income Tax during the specified period.
Deferred Tax:
Deferred Tax is recognized, subject to the consideration of prudence, as the tax effect of timing difference between the taxable income & accounting income computed for the current accounting year and reversal of earlier years’ timing difference.
Deferred Tax Assets are recognized and carried forward to the extent that there is a reasonable certainty, except arising from unabsorbed depreciation and carry forward losses, which are recognized to the extent that there is virtual certainty, that sufficient future taxable income will be available against which such deferred tax assets can be realized.
2.12 Employee benefits
Expenses and liabilities in respect of employee benefits are recorded in accordance with Accounting Standard 15 Employee Benefits (Revised 2005).
a) Provident fund
The Group makes contribution to statutory provident fund in accordance with Employees’ Provident Funds and (Miscellaneous Provisions) Act, 1952. The plan is a defined contribution plan and contribution paid or payable is recognised as an expense in the period in which services are rendered by the employee.
b) Gratuity
Gratuity is a post employment benefit and is in the nature of a defined benefit plan. The liability recognised in the balance sheet in respect of gratuity is the present value of the defined benefit obligation at the balance sheet date, together with adjustments for unrecognised actuarial gains or losses and past service costs. The defined benefit obligation is calculated annually by an independent actuary using the projected unit credit method.
Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to statement of profit and loss in the year to which such gains or losses relate.
c) Compensated absences
Liability in respect of compensated absences becoming due or expected to be availed within one year from the balance sheet date is recognised on the basis of undiscounted value of estimated amount required to be paid or estimated value of benefit expected to be availed by the employees. Liability in respect of compensated absences becoming due or expected to be availed more than one year after the balance sheet date is estimated on the basis of an actuarial valuation performed by an independent actuary using the projected unit credit method.
Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to the statement of profit and loss in the year to which such gains or losses relate.
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
102
2.13 Leases
Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased assets, are classified as ‘Operating Leases’. Lease rentals in respect of assets taken under operating leases are charged to the statement of profit and loss on a straight line basis over the term of lease.
2.14 Cash flow statement
Cash flows are reported using the indirect method, whereby a profit before tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, financing and investing activities of the group are segregated.
2.15 Earning per share
Earning 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.
For the purpose of calculating diluted earning per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of equity shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.
2.16 Segment reporting
Identification of segment
The group’s operating businesses are organized and managed separately according to the nature of products manufactured and services provided, with each segment representing a strategic business unit that offers different products. The analysis of geographical segments is based on the areas in which major operating divisions of the group operate.
Inter segment transfer
The group accounts for intersegment sales and transfers as if the sales or transfers were to third parties at current market prices.
Allocation of common costs
Common allocable costs are allocated to each segment on reasonable basis
Unallocated items
Include general corporate income and expense items which are not allocable to any business segment.
Segment policies
The group prepares its segment information in conformity with the accounting policies adopted for preparing and presenting the financial statements of the group as a whole.
2.17 Provisions and contingencies
The Group makes a provision when there is a present obligation as a result of a past event where the outflow of economic resources is probable and a reliable estimate of the amount of the obligation can be made.
A disclosure is made for a contingent liability when there is :
a) Possible obligation, the existence of which will be confirmed by the occurrence/non-occurrence of one or more uncertain events, not fully with in the control of the Group, or
b) Present obligation, where it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation; or
c) Present obligation, where a reliable estimate cannot be made.
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
103
250,000,000
250,000,000
201,016,000
201,016,000
PARTICULARS
PARTICULARS
Name of Shareholder
As at March 31,2014
March 31, 2014Number Rs.
March 31, 2014Number of Shares Percentage
Holding
As at March 31,2013
March 31, 2013Number Rs.
March 31, 2013Number of Shares Percentage
Holding
3 Share Capital Amount in `
Authorised
250,000,000 (previous year 250,000,000) equity shares of Re.1 each
Issued, subscribed & paid up
201,016,000 (previous year 201,016,000) equity shares of Re.1 each, fully paid
Total
250,000,000
250,000,000
201,016,000
201,016,000
3.1 Reconciliation of equity shares outstanding at the beginning and at the end of the year
Equity shares outstanding at the beginning of the year
Equity shares issued during the year
Equity shares bought back during the year
Equity shares outstanding at the end of the year
201,016,000 201,016,000
- -
- -
201,016,000 201,016,000
201,016,000 201,016,000
- -
- -
201,016,000 201,016,000
3.2 Terms and rights attached to equity shares
The Company has one class of equity shares having par value of Re. 1 each. Each shareholder is eligible for one vote per share held. The Company declares and pays dividend in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of shareholders in the ensuing annual general meeting
During the year ended March 31, 2014, the amount of dividend per share recognised as distribution to equity holders was Rs. NIL (previous year Rs. 0.10). The total dividend appropriation for the year ended March 31, 2014 amounts to Rs. NIL (previous year Rs. 20,101,600) excluding dividend distribution tax of Rs. NIL (P.Y. Rs. 3,416,267)
In the event of liquidation of the Company, the holder of equity shares will be entitled to receive any of the remaining assets of the Company, after distribution of all preferential amounts, if any. The distribution will be in proportion to the number of equity shares held by the shareholders.
3.3 Shareholders holding more than 5% of equity share capital
3.4 The Company has not issued bonus shares, equity shares issued for considerations other than cash and also no shares has been bought back during the period of five years immediately preceding the reporting period.
BTL Holding Company Limited* #(formerly known as BTL Investments & Securities Limited )
Akriti Global Traders Limited (formerly known as Akriti Realtech Ltd.)
SRS Holdings India Limited *(formerly known as BTL Industries Limited)
117,468,062 58.44% 34,790,904 17.31%
19,898,318 9.90% 19,496,092 9.70%
- - 79,994,158 39.79%
* During the year, SRS Holdings India Limited, promoter company of the company, has been merged with another promoter company namely BTL Holding Company Limited (Formerly known as BTL Investments & Securities Limited) vide Hon'ble High court order dated 18.07.2013. Hence, during the year the company has become subsidiary of BTL Holding Company Limited.
# 13,500,000 (6.72%) equity of SRS Holdings India Limited has been transferred to BTL Holding Company Limited on 22.04.2014, as the same were pledged.
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
104
PARTICULARSAs at
March 31,2014As at
March 31,2013
5 Long term borrowings Amount in `
Secured loan *
Term loansFrom banksFrom financial institutions
Unsecured loans
Deferred credit payment
Public deposit
From others
Total
* Refer note no.5.1 for other details of borrowings
1,755,548,061 1,339,260
1,756,887,321
-
138,685,590
-
138,685,590
1,895,572,911
717,995,668 -
717,995,668
3,883,185
93,496,097
1,091,370
98,470,652
816,466,320
PARTICULARSAs at
March 31,2014As at
March 31,2013
4 Reserves and surplus Amount in `
Securities premium account
Opening balance
Add:- Additions/ (deletions) during the year
Closing balance
Capital reserves
Opening balance
Less:- Addition/(deletion) during the year
Closing balance
General reserves
Opening balance
Less:- Addition/(deletion) during the year
Closing balance
Surplus in the statement of profit and loss
Opening balance
Add:- Transfer from statement of profit and loss
Amount available for appropriation
Less :- Appropriations
Proposed dividend
Dividend distribution tax
Transfer to general reserves
Closing balance
Total
1,760,000,000
-
1,760,000,000
9,033,244
-
9,033,244
12,214,240
-
12,214,240
231,253,431
50,177,111
281,430,542
-
-
-
281,430,542
2,062,678,026
1,760,000,000
-
1,760,000,000
9,033,244
-
9,033,244
10,927,827
1,286,413
12,214,240
194,951,956
61,105,755
256,057,711
20,101,600
3,416,267
1,286,413
231,253,431
2,012,500,915
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
105
ParticularsAs at
31st March 2014As at
31st March 2013Particulars of security / guarantees // default
Term Loan from Bank
Syndicate Bank
Balance Outstanding - 38,996,306
Current Maturity - 38,996,306
Non-Current Maturity - -
Central Bank of India- Term Loan
Balance Outstanding 201,385,922 239,035,711
Current Maturity 36,000,000 36,000,000
Non-Current Maturity 165,385,922 203,035,711
Indian Overseas BankTerm Loan
Balance Outstanding 216,153,094 149,100,225
Current Maturity 112,500,000 -
Non-Current Maturity 103,653,094 149,100,225
Canara Bank- Term Loan
Balance Outstanding 277,730,186 113,599,078
Current Maturity Non-Current Maturity
105,000,000172,730,186
- 113,599,078
Terms of Repayment
PRIMARY SECURITY
Secured against land measuring 64.71 Acres in name of thecompany and M/s. Premier Infrabuild Private Limited.Hypothecation of all the existing and proposed fixed andcurrent assets of the project. Personal guarantee of directors and corporate guarantee ofM/s. Premier Infrabuild Private Limited.
Applicable rate of interest is Base Rate+6% P.A. subject to change from time to time.
2 Equal Half-yearly installments of Rs. 31,200,000 each commencing from June 2013.
PRIMARY SECURITY
PRIMARY SECURITY
PRIMARY SECURITY
1st charge on moveable and immovable assets of company pertaining to IT Park ( Project specific assets ) viz EM of land and building at khasra no:-44//22/2.23.24/1 Village Mewla Maharajpur, 14/5 , Delhi Mathura Road Faridabad standing in the name of M/s SRS Automotive Components Pvt. Ltd. (Formerly known as (M/s SRS I-Tech Private Limited), hypothecation of plant & machineries and other fixed assets of the project .
1st charge on a Trust & Retention account /Escrow account . First charge on all the movable assets (including receivables ) of the project .
1. 2011-12 - quarterly installments of Rs. 3,000,000 each
2. 2012-13 - quarterly installments of Rs. 6,000,000 each
3. 2013-14 - quarterly installments of Rs. 7,500,000 each
4. 2014-15 and 2015-16 - quarterly installments of Rs. 9,000,000 each
5. 2016-17 - quarterly installments of Rs. 12,000,000 each
6. 2017-18 - quarterly installments of Rs. 13,500,000 each
7. 2018-19 - installment of 15,000,000
4 equal quarterly installments of Rs. 112,500,000 commencing from March, 2015.
EM of land and building of IT PARK at khasra no.44//22/2.23,24/1 Village Mewla Maharajpur , 14/5 Delhi Mathura Road , Faridabad standing in the name of M/s SRS Automotive Components Private Limited. (Formerly known as SRS I-Tech Private Limited.) hypothecation of plant & machineries and other fixed assets of the project Value :- Rs. 55.63 crore as on 31st March 2011.
Personal guarantee of directors and corporate guarantee of M/s. SRS Finance Limited and SRS Automotive Components Private Limited. (Formerly known as SRS I-Tech Private Limited.)
Applicable rate of interest is Base Rate+4.5% P.A. subject to change from time to time.
COLLATERAL SECURITY
1. Mortgage of project land measuring 6.643 acre situated at revenue estate of Village Padniawas, Rewari Sector 26,Haryana valued at Rs.23.77 crore(FSV) as per valuation report dated 18.01.2012 and proposed construction thereon with estimated cost of Rs. 63.30 crores.
2. Hypothecation of moveable fixed assets and current assets, including receivables of the project, tangible and intangible assets, cash and investment created as part of the project, through an escrow account.
3. A first charge on all monies lying in escrow account into which all the investment in the project and all project revenue and insurance proceeds are to be deposited.
Personal guarantee of directors.
Applicable rate of interest is Base Rate+4% P.A. subject to change from time to time.
EMT of land measuring 44 Kanal and 3 Marla i.e. 5.518 acres situated at Araji Khewat No. 80/86, Khatono No.96, Mustil N0.25,Kila No.3(7-13), 4(8-0), Kita 2,Rakba 15 Kanal 13 Marla, falling in Vaka Mauza Allhapura,Tehsil Palwal, Distt Palwal, Haryana and Araji Khewat No.80/86, Khatono N0.96, Mustil NO. 25,Kila NO.5/1(6-7),Kita 4, Rakba 28 kanal 10 Marla falling in Vaka Mauza Allhapur, Tehsil Palwal, Distt Palwal, Haryana valued Rs. 3092 lacs and construction thereon in the name of M/s SRS Real Infrastructure Limited.
Personal guarantee of directors.
Applicable rate of interest is Base Rate+3.50% P.A. subject to change from time to time.
4 equal quarterly installments of Rs. 100,500,000 commencing from last quarter of financial year 2014-15.
5.1 The requisite particulars in respect of secured borrowings are as under : Amount in `
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
106
ParticularsAs at
31st March 2014As at
31st March 2013Particulars of security / guarantees // default
Terms of Repayment
PRIMARY SECURITY:
Secured against Equitable Mortgage of land measuring 19.018 acres at Sector-87 Faridabad and construction there on.
Personal Guarantee of Directors and Corporate Guarantee of Land owning Companies and SRS Real Infrastructure Ltd.
Applicable rate of interest is Base Rate + 4.50 % P.A. subject to change from time to time
PRIMARY SECURITY:
Secured against 1st charge on all fixed assets including land measuring 49Kanal 35 Marla located at village Allahpur, sector-6, palwal and Capital WIP related to the project. Personal Guarantee of Directors and Corporate Guarantee of Land owning Companies ( Juhi Infrastructure Private Limited and Singhal Propbuild Private Limited)
Applicable rate of interest is Base Rate + TP0.50 % + 6.00% -2.75%Concession = 14.00% p.a. with monthly rests. subject to change from time to time.
PRIMARY SECURITY:
Secured against Equitable Mortgage of Project land admeasuring 6.4375 Acres at Sector - 6, Palwal and construction thereon. Escrow account.
Personal Guarantee of Directors and Corporate Guarantee of SRS Retreat Services Ltd. and SRS Real Infrastructure Ltd.
Applicable rate of interest is Base Rate + 4.25% = 14.75% p.a.
PRIMARY SECURITY:
Secured against Equitable Mortgage of Project land (Including Proposed Building) acquired in collaboration with Sky High Colonizers Pvt. Ltd. (now merged with SRS Retreat Services Ltd) Pari Passu charge on the chargeable Current Assets of the project.
Personal Guarantee of Directors and Corporate Guarantee of Land owning Companies and SRS Real Infrastructure Ltd.
Applicable rate of interest is Base Rate + 3.25 % P.A. +0.50% T.P. subject to change from time to time
PRIMARY SECURITY:
Secured against Equitable Mortgage of Project land (Including Proposed Building) acquired in collaboration with Sky High Colonizers Pvt. Ltd. (now merged with SRS Retreat Services Ltd) Pari Passu charge on the chargeable Current Assets of the project.
Personal Guarantee of Directors and Corporate Guarantee of Land owning Companies and SRS Real Infrastructure Ltd.
Applicable rate of interest is Base Rate + 4 % P.A. subject to change from time to time
8 Quarterly installment commencing from October, 2012 as under:No. Amount(Per Installment)8 11,25,00,000
Amount in `
Union Bank of India-Term Loan-1
Balance Outstanding
Current Maturity
Non-Current Maturity
224,231,418
224,231,418
-
25,000,000
-
25,000,000
63,649,562
-
63,649,562
281,512,994
-
281,512,994
255,881,537
50,000,000
205,881,537
677,774,873
450,000,000
227,774,873
-
-
-
-
-
-
14,222,208
-
14,222,208
-
-
-
Punjab National Bank-
Term Loan
Balance Outstanding
Current Maturity
Non-Current Maturity
Union Bank Of India
Term Loan - 2
Balance Outstanding
Current Maturity
Non-Current Maturity
Oriental Bank Of Commerce-Term Loan
Balance Outstanding
Current Maturity
Non-Current Maturity
Central Bank Of India - Term Loan
Balance Outstanding
Current Maturity
Non-Current Maturity
6 Quarterly stepped up installments commencing from oct to dec 2015 quarter. First two installments of Rs.1.50 cr each and remaining four installments of Rs. 4.25 cr.
Start from Qtr 1 of F.Y. 2015-16 and the loan will be repaid in 8 equal quarterly installments of Rs. 2.50 cr.
8 Quarterly installment with a moratorium of 36 months starting from 25th sep., 2015 from the date of first disbursement .No. Amount(Per Installment) 8 5,00,00,000
8 Quarterly installment commencing from March , 2015 as under:No. Amount (Per Installment) 8 5,00,00,000
Canara Bank-
Term Loan
Balance Outstanding
Current Maturity
Non-Current Maturity
727,044,653
-
727,044,653
-
-
-
PRIMARY SECURITY:
1.Khewat no:-128/110 khatoni no:-154 khatoni no:-113 27 kanal 6.5 marla in the name of the company situated at village baselwa Tehsil + distt:-Faridabad . 2.khewat no:-khatoni no:-202/242 M.N 47 Kila no:-2/3 78 kanal 18 marla in the name of the company. 3.khewat no:-173/205 , 312/375 , 326/392 , 202/242 Total area 78 kanal 18 marla in the name of SRS Real Infrastructure ltd.
Personal guarantee of directors
Applicable rate of interest is Base Rate + 3.75 % P.A. subject to change from time to time
8 Quarterly installment commencing from June , 2015 as under:No. Amount (Per Installment)8 13,75,00,000
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
107
ParticularsAs at
31st March 2014As at
31st March 2013Particulars of security / guarantees // default
Terms of Repayment
PRIMARY SECURITY:
Equitable Mortgage of the following property : Pre-identified 81 unsold flats (along with proportionate undivided rights rights in land ) forming part of group housing colony named 'SRS Residency ' been constructed by borrower on land measuring 15.06 acres at sector 88 , Faridabad.
Hypothecation of all Receivables of the SRS Residency Project land and constructions thereon . Lien on units in the project.
Personal Guarantee of Director and Corporate Guarantee of SRS Real Infrastructure Ltd.
Applicable rate of interest is 15.25 % P.A. on monthly reducing & floating rate basis
Repayable within 15 equal monthly installments.
PARTICULARSAs at
March 31,2014As at
March 31,2013
Deferred tax liability arising on account of:
Depreciation 29,198,180 14,722,491
Total deferred tax liability (A) 29,198,180 14,722,491
Deferred tax assets arising on account of:
Provision for employee benefits 1,313,613 1,006,645
Provision for bonus 131,481 111,072
Provision for doubtful debts 1,704,532 1,946,700
Preliminary expenses 43,268 15,700
Carry forward of business losses 1,348,636 970,319
Total deferred tax asset (B) 4,541,530 4,050,436
Deferred tax liability (Net) (A-B) 24,656,650 10,672,055
Amount in `6 Deferred tax liabilities (Net)
Amount in `
Tata Capital Housing Finance Ltd Balance Outstanding Current Maturity Non-Current Maturity
78,445,415
78,445,415
-
-
-
-
Thus the aggregate amount of loan guaranteed by directors is Rs. 2,3511,034,000 (P.Y. Rs. 1,232,728,400)
Summary
Balance Outstanding
Current Maturity
Non-Current Maturity
2,373,159,010 1,265,381,016
617,610,948 547,385,347
1,755,548,062 717,995,670
Secured against hypothecation of specified vehicles of the Company.
Total 1 number of vehicle loan repayable within 36 equal monthly installment.
Vehicle Loan from Others
Balance Outstanding
Current Maturity
Non-Current Maturity
2,306,970
967,711
1,339,259
520,095
520,095
-
Vehicle Loan from Banks
Balance Outstanding
Current Maturity
Non-Current Maturity
22,124,229
11,434,115
10,690,114
32,652,616
22,389,041
10,263,575
Secured against hypothecation of specified vehicles of the company.
Total 24 number of vehicle loan repayable within 36 equal monthly installment.
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
108
Secured loan
From bank :
Bank overdraft 4,731,891 866,333
Cash credit* 845,732,791 850,508,239
Demand loan 34,851,457 9,030,000
Unsecured loan
Public deposits 331,627,221 226,841,000
1,216,943,360 1,087,245,572
* Cash credit facility from Oriental Bank of Commerce and Bank of India (under consortium arrangement) of Rs. 845,732,791 (previous year Rs. 850,508,239) is secured by first pari-passu charge on the stock in trade, book debts and all other current assets of trading division. This facility is further secured by equitable mortgage of certain immovable properties belonging to the Company and its subsidiary company, personal guarantees of the directors and corporate guarantee of SRS Real Estate Limited and SRS Retreat Services Limited.
PARTICULARSAs at
March 31,2014As at
March 31,2013
Amount in `7 Other long term liabilities
Security deposit 61,673,059 75,124,308
Total 61,673,059 75,124,308
PARTICULARSAs at
March 31,2014As at
March 31,2013
Amount in `8 Long term provisions
Provision for employee benefits (refer note no. 39) 3,946,219 2,965,511
Total 3,946,219 2,965,511
PARTICULARSAs at
March 31,2014As at
March 31,2013
Amount in `9 Short term borrowings
PARTICULARSAs at
March 31,2014As at
March 31,2013
Due to micro and small enterprises* - -
Due to creditors other than micro and small enterprises 276,168,807 306,394,280
Total 276,168,807 306,394,280
*The above information as required to be disclosed under Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the company. Further, no interest has been paid during the year and payable as on 31st March 2014 as well as 31st March 2013 to such parties.
Amount in `10 Trade payables
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
109
PARTICULARSAs at
March 31,2014As at
March 31,2013
Current maturities on long term borrowings (Refer note no. 5.1) 618,578,659 547,905,442
Advances from customers 2,077,534,381 2,402,200,440
Interest accrued but not due 14,097,299 9,225,625
Interest accrued and due on term loans - 2,007,383
Book overdraft 2,255,427 1,592,407
Security deposit 29,784,739 60,011,519
Unclaimed dividend 196,927 181,102
Other payables
-Employee dues payable 5,666,365 5,035,815
-statutory dues payable 24,337,291 30,165,976
-Others * 446,684,312 469,178,688
Total 3,219,135,400 3,527,504,397
* includes external development charges/internal development charges and interest payable thereon amounting to Rs. 49,916,208 (P.Y. Rs.458,929,275)
Amount in `11 Other current liabilities
PARTICULARSAs at
March 31,2014As at
March 31,2013
Provision for employee benefits (Refer note no. 39) 127,721 179,791
Others
Provision for income tax (Net of advance tax & TDS) 10,002,261 29,787,558
Provision for wealth tax 65,663 -
Proposed dividend - 20,101,600
Provision for dividend distribution tax - 3,416,267
Provision for expenses 60,264,522 122,101,456
Total 70,460,167 175,586,672
Amount in `12 Short term provision
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
110
Del
etio
ns/
ad
just
men
ts
Del
etio
ns/
ad
just
men
ts
As
at
Ap
ril 0
1, 2
013
Ad
dit
ion
s D
elet
ion
s/
adju
stm
ents
A
s at
M
arch
31,
2014
U
pto
A
pri
l 01,
201
3 F
or
the
year
U
pto
M
arch
31,
201
4 A
s at
M
arch
31,
201
4
Des
crip
tio
n
GR
OS
S V
AL
UE
A
MO
RT
ISA
TIO
N N
ET
VA
LU
E A
s at
M
arch
31,
201
3
13.1
Ta
ng
ible
ass
ets
13
F
ixed
ass
ets
As
at
Ap
ril 0
1, 2
013
Ad
dit
ion
s D
elet
ion
s/
adju
stm
ents
A
s at
M
arch
31,
2014
U
pto
A
pri
l 01,
201
3 F
or
the
year
U
pto
M
arch
31,
201
4 A
s at
M
arch
31,
201
4
13.
2 C
apit
al w
ork
in p
rog
ress
13.3
Inta
ng
ible
Ass
ets
# In
clud
es s
truc
ture
dev
elop
ed u
nder
col
labo
ratio
n ag
reem
ent w
here
land
is h
eld
by th
e su
bsid
iary
com
pani
es.
Des
crip
tio
n
GR
OS
S V
AL
UE
D
EP
RE
CIA
TIO
N N
ET
VA
LU
E
* B
orro
win
g co
st a
mou
ntin
g to
Rs.
14,8
75,2
10/-
(P.
Y. N
IL)
has
been
cap
italil
sed
As
at
Mar
ch 3
1, 2
013
Fre
ehol
d la
nd
108
,241
,916
1
08,8
96,6
31
14,
461,
304
2
02,6
77,2
43
-
-
-
-
202
,677
,243
1
08,2
41,9
16
Bui
ldin
g #
2
20,7
20,0
53
181
,777
,611
9
9,54
8,81
1
302
,948
,853
3
,040
,120
3
,040
,636
1
,371
,979
4,
708,
777
2
98,2
40,0
76
217
,679
,933
Leas
ehol
d im
prov
emen
ts
14,
887,
520
-
-
1
4,88
7,52
0
5,3
63,5
49
1,6
54,0
03
-
7,01
7,55
2
7,8
69,9
68
9,5
23,9
71
Fur
nitu
re a
nd fi
xtur
es
25,
846,
954
2
,306
,629
6
2,93
9
28,
090,
644
6
,913
,431
1
,785
,762
1
1,70
1 8,
687,
492
1
9,40
3,15
2
18,
933,
523
Veh
icle
1
00,5
43,0
93
22,
433,
078
2
4,12
5,74
4
98,
850,
427
3
2,54
6,45
6
9,3
91,2
90
17,
259,
564
24
,678
,182
7
4,17
2,24
5
67,
996,
637
Offi
ce e
quip
men
ts
25,
392,
954
2
,525
,484
6
,395
,283
2
1,52
3,15
5
5,3
65,4
12
983
,844
1
47,1
64
6,2
02,0
92
15,
321,
063
2
0,02
7,54
2
Pla
nt a
nd m
achi
nery
9
9,61
8,11
8
17,
459,
901
3
2,19
7,90
3
84,
880,
116
7
,952
,089
5
,396
,037
4
,832
,552
8
,515
,574
7
6,36
4,54
2
91,
666,
029
Tem
pora
ry s
truc
ture
2
,377
,771
-
-
2
,377
,771
1
,304
,233
1
00,4
10
-
1
,404
,643
9
73,1
28
1,0
73,5
38
Com
pute
r
8,5
39,9
69
1,1
02,4
20
125
,825
9
,516
,564
6
,562
,095
1
,200
,987
9
7,87
4
7,6
65,2
08
1,8
51,3
56
1,9
77,8
74
TOTA
L
606
,168
,348
33
6,50
1,75
4 17
6,91
7,80
9 76
5,75
2,29
3 69
,047
,385
23
,552
,969
23
,720
,834
68
,879
,520
69
6,87
2,77
3 53
7,12
0,96
3
Pre
vio
us
year
47
1,67
8,64
0 29
3,93
6,81
6 15
9,44
7,10
8 60
6,16
8,34
8 51
,955
,022
22
,151
,611
5,
059,
248
69,0
47,3
85
537,
120,
963
Cu
rren
t ye
ar*
227,
620,
318
211,
258,
775
163,
956,
057
274,
923,
036
- -
- -
274,
923,
036
227,
620,
318
Pre
vio
us
year
86
3,25
3,42
8 44
3,69
2,36
9 1,
079,
325,
479
227,
620,
318
- -
- -
227,
620,
318
Sof
twar
e 8,
290,
511
22,4
72
- 8,
312,
983
1,87
8,22
5 67
2,10
0 4,
860
2,54
5,46
5 5,
767,
518
6,41
2,28
6
TOTA
L
8,29
0,51
1 22
,472
-
8,31
2,98
3 1,
878,
225
672,
100
4,86
0 2,
545,
465
5,76
7,51
8 6,
412,
286
Pre
vio
us
year
1,
577,
212
6,71
3,29
9 -
8,29
0,51
1 1,
345,
814
532,
411
- 1,
878,
225
6,41
2,28
6
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
111
PARTICULARS
PARTICULARS
As at March 31,2014
As at March 31,2014
As at March 31,2013
As at March 31,2013
(Valued at cost unless stated otherwise)
In associate company
SRS Hitech Projects Limited 58,373,190 -
(94,455 (previous year NIL) equity shares of Rs.10 each fully paid up)
(Including Rs. 13,865,993 of goodwill arised on acquisition of investment in associate)
Add:- Income from associates 327,670 -
Total 58,700,860 -
(Unsecured, considered good)
Share application money pending allotment - 568,979
Advance to suppliers/contractors 1,416,859 -
Security deposit 83,123,179 24,255,246
Total 84,540,038 24,824,225
Amount in `
Amount in `
14 Non-current Investment
15 Long term loans and advances
PARTICULARS
PARTICULARS
PARTICULARS
As at March 31,2014
As at March 31,2014
As at March 31,2014
As at March 31,2013
As at March 31,2013
As at March 31,2013
Bank deposits having maturity more than 12 months (refer note no. 20.1) 46,985,229 94,414,335
Total 46,985,229 94,414,335
(Current, non-trade, quoted, at cost)
50000 (previous year 50,000) units UBI KBC equity fund growth of Rs. 10 each 500,000 500,000
50000 (previous year 50,000) units UBI KBC equity fund growth of Rs. 10 each 500,000 500,000
Total 1,000,000 1,000,000
Note: All the above shares/units are fully paid up.
Aggregate amount of quoted investments 1,000,000 1,000,000
Market value of quoted investments 1,226,000 1,047,000
(As taken, valued and certified by the management)
Project in progress (Refer note no. 26) 3,334,855,977 2,906,544,673
Developed property held for sale 271,736,921 224,904,106
Raw material 10,452,418 12,069,938
Goods held for resale 15,350,496 10,660,474
Land for resale 308,813,085 102,612,558
Building material at site 16,304,211 17,216,189
Total 3,957,513,108 3,274,007,938
Amount in `
Amount in `
Amount in `
16 Other non-current assets
17 Current investments
18 Inventories
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
112
PARTICULARS
PARTICULARS
As at March 31,2014
As at March 31,2014
As at March 31,2013
As at March 31,2013
Amount in `20 Cash and bank balances
(Unsecured, considered good unless otherwise stated)
Outstanding for a period exceeding six months from the date they are due for payment
Unsecured, considered good 321,188,112 371,217,106
Unsecured, considered doubtful - 6,000,000
321,188,112 377,217,106
Provision for doubtful debts (5,253,605) (6,000,000)
315,934,507 371,217,106
Other trade receivable 1,467,225,677 1,854,760,191
Total * 1,783,160,184 2,225,977,297
Cash and cash equivalent Cash in hand 20,764,523 28,426,627 Balance with banks -in current accounts 151,304,107 95,598,228 -Deposits within 3 months maturity* 3,477,832 51,852,176 175,546,462 175,877,031
Other bank balances -Upto 12 months maturity from date of acquisition* 90,005,733 13,872,767 -Maturity more than 12 months but within one year from the reporting date* 29,705,135 42,749,750 -Unpaid dividend account 197,543 181,682 *refer note no. 20.1
Total 295,454,873 232,681,230
Amount in `19 Trade receivables
Particulars
FDR balances with bank Total Kept as margin
money against bank
guarantees & bank
over draft
Free from
any lien
Total Kept as margin
money against
bank guarantees
& bank over draft
Free from
any lien
Deposit account with bank
-Upto 3 months maturity from date of acquisition 3,477,832 3,477,832 - 51,852,176 1,852,176 50,000,000
Shown as cash equivalent 3,477,832 3,477,832 - 51,852,176 1,852,176 50,000,000
-Upto 12 months maturity from date of acquisition 90,005,733 90,005,733 - 13,872,767 13,872,767 -
-Maturity more than 12 months but within one year
from the reporting date
29,705,135 29,705,135 - 42,749,750 42,749,750 -
Shown as other bank balances 119,710,868 119,710,868 - 56,622,517 56,622,517 -
-Maturity more than 12 months but after one
year from the reporting date
46,985,229 46,985,229 - 94,414,335 94,414,335 -
Shown as other non-current assets 46,985,229 46,985,229 - 94,414,335 94,414,335 -
Total 170,173,929 170,173,929 - 202,889,028 152,889,028 50,000,000
As at March 31,2014 As at March 31,201320.1
Amount in `
*Includes Rs.5,586.031 (P.Y. Rs.2,428,894) receivable from entities where directors have significant interest (refer note no.41)
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
113
PARTICULARS
PARTICULARS
As at March 31,2014
As at March 31,2014
As at March 31,2013
As at March 31,2013
Secured
Advance to suppliers/contractors 2,300,000 -
Unsecured, considered good unless otherwise stated
Loans and advances to related parties
- For projects - 22,530,941
Loans and advances to bodies corporate 448,550,977 268,163,831
Others
Advance to collaborator for projects 612,169,973 260,250,173
Advance recoverable in cash or in kind or for value is to be received 9,471,856 21,952,392
Advance for investment 31,300,000 -
Advance to suppliers/contractors 413,279,715 580,088,847
Other loans and advances 46,554,740 34,778,090
Security deposit 606,226 246,226
Deposit /balance with tax authorities 29,263,441 2,508,412
Total 1,593,496,928 1,190,518,912
Interest accrued on fixed deposits 15,452,858 6,902,178
Prepaid expenses 3,852,055 3,579,043
Stamp paper in hand 150,000 150,000
Unbilled receivables 208,591,580 390,267,305
MAT credit entitlement 5,789,559 -
Total 233,836,052 400,898,526
Amount in `
Amount in `22 Other current assets
21 Short term loan and advances
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
114
PARTICULARS
PARTICULARS
PARTICULARS
For the year endedMarch 31,2014
For the year endedMarch 31,2014
For the year endedMarch 31,2014
For the year endedMarch 31,2013
For the year endedMarch 31,2013
For the year endedMarch 31,2013
Gross value of sale of goods :
Developed properties 1,689,245,822 2,604,245,308
Plots and land - 83,800,175
Traded goods 7,625,792,047 7,292,816,058
Manufactured good 71,995,167 236,074,851
Securities held for sale - 151,741,280
9,387,033,036 10,368,677,672
Less: Excise duty 2,216,051 7,541,012
Net value of sale of goods 9,384,816,985 10,361,136,660
Sale of services :
Income from facility management services 19,850,132 1,422,471
Rent 2,126,877 5,332,500
Other operating income 96,208,371 116,124,370
Total 9,503,002,365 10,484,016,001
Interest income 64,064,494 29,258,745
Reversal of provisions for diminution in the value of investment - 35,000
Profit on sale of investments - 30,223
Reversal of provision of bad debts 884,433 -
Miscellaneous income 5,797,162 5,789,409
Total 70,746,089 35,113,377
Opening stock 12,069,937 9,171,455
Less: Adjustment on account of cessation of Joint Venture with RMC Gurgaon 293,637 -
11,776,300 9,171,455
Purchases 61,414,630 182,086,664
Less: Closing stock 10,452,418 12,069,937
Total 62,738,512 179,188,182
*also refer note no. 42
Amount in `
Amount in `
Amount in `
23 Revenue from operations
24 Other income
25 Cost of material consumed*
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
115
PARTICULARS
PARTICULARS
PARTICULARS
For the year endedMarch 31,2014
For the year endedMarch 31,2014
For the year endedMarch 31,2014
For the year endedMarch 31,2013
For the year endedMarch 31,2013
For the year endedMarch 31,2013
Project in progress in the beginning of the year 2,906,544,668 2,641,708,165
Add : Cost incurred during the year
Collaborator share 13,903,507 -
Cost of developed property 80,096,225 802,285,795
Cost of land 4,299,134 139,425,409
Construction costs 1,132,429,902 1,314,830,013
Government charges 92,391,867 17,458,023
Building material consumed 409,040,607 395,212,886
Personnel expenses 37,966,858 35,412,250
Financial expenses 250,268,152 329,723,711
Other expenses * 11,500,711 26,392,984
Depreciation on projects assets 543,242 553,298
4,938,984,873 5,703,002,534
Less: Project in progress at the close of the year 3,334,855,971 2,906,544,668
Cost of project charged to statement of profit & loss account 1,604,128,902* 2,796,457,866
Purchases of land/developed properties 269,699,826 47,164,996
Purchases of securities - 92,028,320
Purchases of goods for resale 7,334,184,177 7,116,710,641
Total 7,603,884,003 7,255,903,957
Opening stock
Goods held for resale- trading division 10,660,474 24,467,966
Land for resale 102,612,558 86,157,281
Securities - 59,222,960
Developed property held for sale 224,904,111 -
Less:- Stock converted into fixed assets 158,503 -
Closing stock
Goods held for resale- trading division 15,350,496 10,660,474
Land for resale 308,813,085 102,612,558
Developed property held for sale 271,736,926 224,904,111
Decrease/ (Increase) in inventories (257,881,867) (168,328,936)
Amount in `
Amount in `
Amount in `
26 Cost of sale of developed properties
27 Purchase of stock-in-trade
28 Change in inventory
*Includes Rs. Nil (previous year Rs.3,963,624) related to prior period. Also refer note no. 38.
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
116
PARTICULARS
PARTICULARS
PARTICULARS
For the year endedMarch 31,2014
For the year endedMarch 31,2014
For the year endedMarch 31,2014
For the year endedMarch 31,2013
For the year endedMarch 31,2013
For the year endedMarch 31,2013
Salaries, wages, stipend and bonus 63,279,858 54,765,361
Contribution to provident fund and other funds 3,543,851 3,375,603
Staff welfare expenses 2,118,404 2,405,311
Provision for employee benefits (refer note no. 39) 931,642 713,984
69,873,755 61,260,259
Less: Allocated to capital work in progress 569,579 -
Less: Allocated to project in progress 37,966,858 35,412,250
Total 31,337,318 25,848,009
Interest on:
Term loans 256,301,560 178,430,199
Cash credit/overdraft 117,141,865 112,549,329
Others (refer note no. 38) 50,757,305 21,452,613
EDC/IDC 52,747,408 127,476,249
Bank and other financial charges 24,888,028 29,724,413
501,836,166 469,632,803
Less: Allocated to capital work in progress/ fixed assets 16,861,387 -
Less: Allocated to projects in progress 250,268,152 329,723,711
Total 234,706,627 139,909,092
Depreciation of tangible assets (also refer note no. 13.1) 23,552,969 22,151,611
Amortisation of intangible assets (also refer note no. 13.3) 672,100 532,411
24,225,069 22,684,022
Less: allocated to projects in progress 543,242 553,298
Total 23,681,827 22,130,724
Amount in `
Amount in `
30 Finance expense
31 Depreciation and amortisation expense
Amount in `29 Employee benefit expense
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
117
Repair and maintenance - plant and machinery 1,786,912 3,783,940
Repair and maintenance - others 7,580,705 4,744,738
Bad debts 296,146 249,980
Provision for doubtful debts - 6,000,000
Travelling and conveyance 4,377,895 4,857,492
Freight and cartage 476,654 887,376
Premium on surrender of flats/plots 8,236,250 -
Power and fuel 14,622,461 13,114,950
Security, CAM Charges and house keeping (refer note no. 38) 18,587,995 -
Advertisement 19,936,864 20,859,903
Brokerage and commission 48,844,316 70,908,511
Business promotion 4,077,843 4,065,835
Donation 1,521,650 1,758,751
Balances written off 4,687,719 952,547
Telephone expenses 43,891 2,276,188
Other expenses 32,938,012 20,059,294
211,821,683 196,927,729
Less: Allocated to capital work in progress 3,333,270 1,034
Less: Allocated to projects in progress 11,500,711 26,392,984
Total 196,987,702 170,533,711
PARTICULARSFor the year ended
March 31,2014For the year ended
March 31,2013
Net profit as per profit and loss account including exceptional items 50,177,111 61,105,757
Face value of share 1 1
Weighted average number of equity share in calculating basic EPS 201,016,000 201,016,000
Weighted average number of equity share in calculating diluted EPS 201,016,000 201,016,000
Basic earning per share 0.25 0.30
Diluted earning per share 0.25 0.30
Amount in `33 Earning per share
PARTICULARSFor the year ended
March 31,2014For the year ended
March 31,2013
Amount in `32 Other expenses
Legal and professional 18,266,468 18,350,927
Loss on sale of fixed assets 2,710,266 693,968
Fixed assets written off - 1,786,730
Printing and stationery 2,751,114 2,239,664
Rates and taxes 1,300,388 325,090
Lease rent paid 13,441,958 14,289,872
Payment to auditors 3,474,447 3,196,540
Insurance expenses 1,861,729 1,525,433
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
118
34.1 The company has received notice from Excise & Taxation Commissioner, Haryana seeking to impose tax on the transaction of sale of flats, floors & villas constructed during or before the year 2007-08 to 2010-11 along with the notice of demand for the year 2010-11.
The Company has challenged the view of Excise & Taxation department stating that no method has been prescribed under law for computation of tax and under HVAT Act VAT is not applicable on Developer’s transactions.
However,the company is entitled to recover the same from the customers to whom flats has been sold or with whom agreement for sale has been entered as per the terms of the agreement. As per the management, in case of demand, the company would recover the same from the customers. Hence, no liability would arise in case of demand.
35
36
37
In the opinion of the management, the value on realisation of current assets, loans and advances in the ordinary course of business would not be less than the amount at which they are stated in the balance sheet and provisions for all known liabilities have been made.
Estimated amount of contracts remaining to be executed on capital account and not provided for Rs. 30,220,683 (Previous Year Rs. 1,73,68,700).
Parent company has started accepting public deposits under the fixed deposits scheme w.e.f 26th April 2012 under two different schemes i.e. non- cumulative (A) and cumulative deposits (B) bearing different interest rates based on the period of the deposits. The total deposits accepted by the company during the FY 2013-2014 are:-
Scheme March 31, 2014 March 31, 2013
Cumulative 171,206,000 184,529,000
Non-cumulative 105,579,000 133,295,000
Amount in `
Amount in `
The scheme provide the payment of interest on quarterly basis ranging between 11.5% - 12.5% under scheme (A) and compounding of quarterly interest ranging between 12.01% - 14.89% with payment on maturity date under scheme (B).
38 Prior Period expenses
Following are the details of prior period expenses-
Particulars March 31, 2014 March 31, 2013
Cost of developed properties - 3,963,624
Interest on income tax 4,309,163 3,275,910
Loss from investment in joint venture - 3,998,051
Repair and maintenance - 47,283
Commission paid - 6,023
Rates and taxes - 20,000
CAM charges 1,033,840 -
Total 5,343,003 11,310,891
34 Contingent liabilities not provided for in respect of:
Disputed demand in respect of income tax for the AY 09-10 (net of amount deposited)
Particulars
Corporate guarantees
Outstanding bank guarantee
Pending litigation
Taxation matters
March 31, 2014 March 31, 2013
9,250,000,000 8,197,700,000
239,170,830 313,211,500
- 439,515
11,540,956 18,227,000
739,039,407 23,924,171
Amount in `
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
119
Net Asset/ (Liability) recognised in the balance sheet as on March 31, 2014
Changes in the present value of defined benefit obligation are as follows:
The principal assumptions used in determining gratuity and leave liability for the Group's plans are shown below:
Present value of defined benefit obligation at the end of the year 3,044,967 2,289,732 1,028,973 855,570
Fair value of plan assets - - - -
Net asset / (liability) recognised in the balance sheet (3,044,967) (2,289,732) (1,028,973) (855,570)
Present value of defined benefit obligation at the beginning of the year 2,289,732 1,674,745 855,570 756,572
Interest cost 206,076 137,329 77,001 62,039
Past service cost - - - -
Current service cost 842,030 687,416 326,901 284,596
Benefits paid - - (3,004) -
Actuarial (gain) / loss on obligation (292,871) (209,758) (227,495) (247,637)
Present value of defined benefit obligation at the end of the year. 3,044,967 2,289,732 1,028,973 855,570
Discount rate (based on the market yields available on government bonds at the accounting date with term that matches that of the liabilities) 9.00% 8.20% 9.00% 8.20%
Salary increase (taking into account inflation, seniority, promotion and other relevant factor) 6.50% 5.50% 6.50% 5.50%
Expected rate of return on plan assets 0.00% 0.00% 0.00% 0.00%
Average outstanding service of employees upto retirement (years) 24.90 22.74 24.90 22.74
Gratuity
Gratuity
Gratuity
March 31,2014
March 31,2014
March 31,2014
Particulars
Particulars
Particulars
March 31,2013
March 31,2013
March 31,2013
Leave encashment
Leave encashment
Leave encashment
March 31,2014
March 31,2014
March 31,2014
March 31,2013
March 31,2013
March 31,2013
Amount in `
Amount in `
Amount in `
39 Employee benefits
The group has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. Gratuity scheme is unfunded and the Group has provided for leave encashment which is also unfunded.
The following tables summarise the components of net benefit expense recognised in the statement of profit and loss and amounts recognised in the balance sheet for the respective plans (as per actuarial valuation as on March 31, 2014).
Net employees benefit expense (recognised in the statement of profit and loss for the year ended March 31, 2014)
Current service cost 842,030 687,416 326,901 284,596Interest cost 206,076 137,329 77,001 62,039Expected return on plan assets - - - - Past service cost - - - - Actuarial (gain) / loss recognised in the year (292,871) (209,758) (227,495) (247,637)
Net benefit expense 755,235 614,987 176,407 98,998
GratuityMarch 31,2014
ParticularsMarch 31,2013
Leave encashmentMarch 31,2014 March 31,2013
Amount in `
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
120
Liability as on balance sheet date
Current liability 76,083 117,400 51,638 62,391
Non-current liability 2,968,884 2,172,332 977,335 793,179
GratuityMarch 31,2014
ParticularsMarch 31,2013
Leave encashmentMarch 31,2014 March 31,2013
Amount in `
Contribution to defined contribution plans:
Provident and other funds 3,543,851 3,375,603
ParticularsLeave encashment
March 31,2014 March 31,2013
Amount in `
40 Segment reporting
The group is engaged in three reportable business segment (a) Real estate division which includes promotion, construction and development of integrated townships, residential and commercial complexes (b) Trading division and (c) Manufacturing of RMC. The group operates in the same geographical segment.
Segment information as required by Accounting Standard (AS-17) on segment reporting is given hereunder:-
Revenue External 1,763,971,471 7,626,215,612 89,377,889 23,437,393 - 9,503,002,365 (2,791,233,752) (7,290,472,558) (241,469,941) (160,839,751) - (10,484,016,001)Inter segment - 6,688,955 6,858,120 - -13,547,075 - (6,888,025) (27,801,348) (5,813,044) - (-40,502,417) - Total revenue 1,763,971,471 7,632,904,567 96,236,009 23,437,393 -13,547,075 9,503,002,365 (2,784,345,727) (7,318,273,906) (247,282,985) (160,839,751) (-40,502,417) (10,484,016,001)Segment results 60,185,095 294,145,384 -1,485,397 17,675,478 - 370,520,560 (102,701,853) (151,868,856) (21,378,121) (146,795,006) - (422,743,835)Financial expenses 234,706,626 (139,909,092)Unallocated corporate expenses 61,648,504 (185,347,972)Profit before tax 74,165,430 (97,486,771)Provision for taxation -24,315,989 (-36,381,018)Profit after tax (before share of 49,849,441profit in associate) (61,105,753)Share of profit/(loss) in associate 327,670 -Net Profit for the year 50,177,111 (61,105,755)Other information: Segment assets 6,471,498,878 1,333,094,039 59,169,753 17,601,099 - 7,881,363,759 (including CWIP) (5,898,487,463) (1,697,932,502) (150,000,283) (1,568,141) - (7,747,988,389)Unallocated corporate asset 1,150,886,830 (467,487,641)Total asset 9,032,250,599 (8,215,476,030)Segment liability 5,203,713,464 970,653,101 9,625,985 478,085,184 - 6,662,077,734 (4,539,364,394) (941,962,130) (72,710,582) (175,817) - (5,554,212,923)Unallocated corporate liability 106,478,838 (447,746,192)Total liabilities 6,768,556,572 (6,001,959,115)Total capital expenditure 316,273,065 4,492,648 833,506 16,297,019 - 337,896,238 (716,138,281) (969,981) (10,345,619) (16,888,603) - (744,342,484)Depreciation and amortisation 5,120,571 394,897 6,160,362 - - 11,675,830 (7,430,966) (51,501) (10,550,634) - - (18,033,101)Unallocated depreciation and amortisation 12,005,997 (4,097,625)Total depreciation and amortisation 23,681,827 (22,130,726)
Note: Previous year’s figures have been given in the bracket.
Other
Operations
Inter Segment
EliminationParticulars Real Estate Trading Manufacturing Total
Amount in `
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
121
41 Related party transactions
As per Accounting Standard-18, the Group’s related parties and transactions are disclosed below:
a) Related parties and relationships with whom transactions have taken place during the year:
1) Holding Company
i. BTL Holding Company Limited (formerly known as BTL Investments & Securities Limited)
( SRS Holdings India limited merged with BTL Holding Company Limited w.e.f. 18.07.2013)
2) Key management personnel (KMP)
a) Parent Company:-
I. Mr. Anil Jindal Chairman
ii. Mr. Jitender Kumar Garg Managing Director
iii. Mr. Bishan Bansal Whole-Time Director
iv. Mr. Rajesh Singla Whole-Time Director & Chief Financial Officer
b) Subsidiary Company:- (SRS Real Estate Ltd.)
i. Mr. Vinod Jindal - Whole-Time Director
ii. Mr. Rajesh Singla - Whole-Time Director (ceased to be whole time director w.e.f 18.02.2014)
iii. Mr. Nanak Chand Tayal - Whole-Time Director
c) Subsidiary Company:- (SRS Retreat Services Ltd.)
i. Mr. Bhagwat Dayal - Whole-Time Director
3) Enterprises owned or significantly influenced by KMP and/or their Relatives
i. SRS Limited
ii. SRS Holdings India Ltd. (merged with BTL Holding Company Ltd.)
iii. SRS Professional Services Ltd.
iv. BTL Holding Company Ltd.
v. SRS Global Securities Limited
vi. SRS Portfolio Limited
vii. SRS Finance Limited
viii. SRS Hitech Projects Limited
Name of the Party Nature of Transaction Nature 2013-14 2012-13
Mr. Jitender Kumar Garg Director’s Remuneration Expense 1,136,628 1,136,628
Closing Balance:
Amount Payable Liability 94,719 94,719
Mr. Bishan Bansal Director’s Remuneration Expense 682,416 682,416
Closing Balance:
Amount Payable Liability 56,868 56,868
Mr. Rajesh Singla Director’s Remuneration Expense 690,217 720,660
Closing Balance:
Amount Payable Liability 57,518 52,221
Mr. Vinod Jindal Director’s Remuneration Expense 1,435,668 1,494,348
Closing Balance:
Amount Payable Liability 119,639 114,749
Mr. Nanak Chand Tayal Director’s Remuneration Expense 690,216 720,660
Closing Balance:
Amount Payable Liability 57,518 52,721
(A)
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
122
Name of the Party Nature of Transaction Nature 2013-14 2012-13
Mr. Bhagwat Dayal Director’s Remuneration Expense 600,000 600,000
Closing Balance:
Amount Payable Liability 45,448 45,347
SRS Hitech Projects Limited Rent Income Income 67,416 -
Advance given for future projects - 32,400,000
Advance given for future projects - received back 30,100,000
Closing Balance:
Advance recoverable for
future projects Assets - 2,300,000
Investment in shares Assets 58,373,190 -
Trade Receivables Assets 5,618 -
SRS Professional Services Limited Rent Income Income 668,542 707,868
CAM Charges Income 1,635,782 -
Closing Balance:
Trade Receivables Assets 1,635,782 -
SRS Finance Limited CAM Charges Income 399,999 -
Corporate Guarantee given 500,000,000 -
Rent Paid Expense 60,000 60,000
Reimbursement of Expenses Expense 175,843 -
Closing Balance:
Corporate Guarantee given 750,000,000 250,000,000
Trade Receivables Assets 399,999 -
SRS Global Securities Limited Loan and advances given Assets 127,397,110 -
Loan and advances received back Assets 122,401,091 -
Purchase of Investment in shares Assets 58,373,190 -
Loan taken and repaid Liability 6,030,000 -
Sale of Securities Income - 151,741,280
Interest Income Income 1,079,343 -
CAM charges Expense 1,044,264 -
Closing Balance:
Loan and advances given Assets 4,996,019 -
Trade receivables Assets 99,780,544 151,741,280
SRS Portfolio Limited CAM Charges Income 1,259,508 -
Closing Balance:
Trade receivables Assets 1,259,508 -
BTL Holding Company Limited Sale of Investment in shares Assets 500,000 -
Reimbursement of expense Expense 162,447 -
Loan & Advance given Assets 16,390,059 -
Loan & Advance received back Assets 35,487,764 -
Interest Income Income 35,338,105 -
CAM Charges Income 402,158 -
Closing Balance:
Loan & Advance given
(including interest) Assets 249,066,126 268,163,831
Trade Receivables Assets 402,158 -
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
123
Name of the Party Nature of Transaction Nature 2013-14 2012-13
SRS Holdings India Limited Loan taken and repaid Liability - 78,800,000
SRS Limited Sale of Fixed Asset Assets 67,488,120 -
Purchase of Fixed Asset Assets 122,600 2,128,959
CAM Charges Income 7,542,303 -
Sale of Goods Income - 6,521
Rent Received(including Service Tax) Income - 4,382,040
Rent Paid Expense 478,781 1,700,000
Payment of Advertisement Expenses Expense - 80,700
Reimbursement of Expenses (Net) Expense 4,003,948 12,575,050
Security received for Lease rent given back Liability 69,000,000 -
Sale of Space Income - 139,834,411
Closing Balance:
Security received for Lease rent Liability - 69,000,000
Trade Payable Liability - 814,508
Advance received Liability - 489,122
Corporate Guarantee given - 600,000,000
42 Detail of raw material consumed is as follows:
March 31, 2014 March 31, 2013
23,576,508 59,059,152
32,833,015 82,280,111
13,866,352 40,338,970
7,149,210 20,985,165
77,425,085 202,663,398
14,686,573 23,475,216
62,738,512 179,188,182
Total
Others
Particulars
Stone grit
Sand
Net consumption
Less: Inter unit transfer
Cement
Amount in `
March 31, 2014 March 31, 2013Particulars
43 In accordance with Accounting Standard "AS-19 on Leases" the following disclosures in respect of operating leases is made as under:
a) Assets taken on operating lease:
i) The Group has taken an office on non-cancellable operating lease.
ii) Lease payments recognised in statement of profit and loss amounting Rs.3,441,958 (P.Y. Rs.14,289,872)
iii) Future commitments in respect of minimum lease payment payable in respect of aforesaid lease entered by the Group are as follows:
a) Not later than one year 11,883,278 4,872,647
b) Later than one year and not later than five years 48,190,144 12,591,993
c) Later than five years 53,575,832 165,000
Amount in `
b) Assets given on operating lease: i) Future rental income in respect of minimum lease receivables in respect of aforesaid lease entered by the Group are as follows:
March 31, 2014 March 31, 2013Particulars
a) Not later than one year 5,619,132 192,000
b) Later than one year and not later than five years 18,868,256 -
c) Later than five years 4,195,000 -
Amount in `
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
124
44 On May 09, 2012 the Income Tax Authorities conducted a search and seizure on the Group under section 132 of the Income Tax Act, 1961. Group has not received any further notice/ demand from the Income Tax Authorities in respect of search and seizure conducted and accordingly, no provision in that regard has been made in the financial statements
45 Previous year figures have been regrouped/rearranged and reclassified wherever necessary. 46 Figures relating to subsidiaries and jointly controlled entities have been regrouped/reclassified wherever considered necessary to bring them in line with the Company's financial statements.
As per our report of even date attached
For S S Kothari Mehta & Co.Chartered AccountantsFirm Reg. No. 000756N
(Yogesh Gupta)PartnerM.No. 093214
Place : FaridabadDate : May 28, 2014 (Shweta Marwah)
Company SecretaryM.No. 18730
For Naresh Jai & AssociatesChartered AccountantsFirm Reg. No. 019082N
(Naresh Goyal)PartnerM.No. 501487
For and on behalf of the board of directors
(Jitender Kumar Garg)Managing Director
DIN : 00088125
(Rajesh Singla)WTD & CFO
DIN : 00009745
(Dr. Anil Jindal)Chairman
DIN : 00005585
SRS REAL INFRASTRUCTURE LTD.
th24 Annual Report 2013-14
125
CIN : L65910HR1990PLC040431thCorp. & Regd. Office: SRS Tower, 721, 722, 727, 7 Floor, Near Metro Station Mewla Maharajpur, G. T. Road,
Faridabad (NCR Delhi) – 121003, T 0129-4323100 F 0129-4323195
Admin. Office: SRS Multiplex, Top Floor, City Centre, Sector-12, Faridabad (NCR Delhi) - 121007 T 0129-4282801-08 F 0129-4282809-810
Branch Office: 202, 27 New Delhi House, Barakhamba Road, Connaught Place, New Delhi - 110001 T 011-41571258-60 F 011-41571269
W www.srsparivar.com E [email protected]
SRS REAL INFRASTRUCTURE LTD.If undelivered, please return to Corp. & Regd. Office :