1. CORPORATE INFORMATION
Ajmera Realty & Infra India Limited is a public company domiciled in India and incorporated under the provisions of the Indian Companies Act, 1956. Its shares are listed on two stock exchanges in India. The company is engaged in real estate business.
a. Term/rights attached
The company has only one class of equity shares having a par value of Rs. 10 per share. Each holder of equity share is entitled to one vote per share. The company declares and pays dividends in Indian rupees. The Final dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.
During the year ended 31st March, 2018, the amount of dividend recognised as distributions to equity shareholders was Rs. NIL per share as Interim Dividend (Previous Year Rs. 1.70 per share) and Rs. 3.30 per share (Previous year Rs. 0.80 per share) as Final Dividend.
c. Aggregate numbers of bonus shares issued, share issued for consideration other than cash and shares brought back during the period of five years immediately preceding the reporting date:
For the period of five years starting from preceding date
As per records of the company, including its register of shareholders/members and other declarations received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownerships of shares.
* Term loans from Banks includes borrowings from ICICI Bank Limited having an effective rate of interest of 10.30% repayable in specified monthly installments secured against:
1. Residential cum Commercial project “Treon” having saleable area of approx. 540,004 sqft along with the underlying land measuring admeasuring approximately 4,410 sq.mt situated at sub plot A bearing CTS No. 1A/2 of village Anik at Chembur admeasuring 72,778.9 sq.mt and
2. Residential cum Commercial project “Zeon” having saleable area of approx. 540,004 sqft along with the underlying land measuring admeasuring approximately 4,152 sq.mt situated at sub plot A bearing CTS No. 1A/2 of village Anik at Chembur admeasuring 72,778.9 sq.mt
Also these borrowings have been secured by way of personal guarantees of Mr. Rajnikant Ajmera & Mr. Manoj Ajmera.
** Loans from Financial Institutions includes borrowings from HDFC Limited having an effective rate of interest of 10.35% repayable in specified monthly installments secured against:
1. Mortgage of project “Ajmera Aeon” Bhakti Park, Wadala, Mumbai along with an exclusive charge on the scheduled receivables and
2. Mortgage of all parcel of land admeasuring 72,778.90 sqmt bearing CTS no. 1A/2 of village Anik Taluka Kurla Mumbai along with an exclusive charge on the scheduled receivables and all insurance proceeds
Also these borrowings have been secured by way of personal guarantees of Mr. Rajnikant Ajmera, Mr. Dhaval Ajmera & Mr. Bandish Ajmera.
2 Contingent liabilities not provided for in respect of :
a. I ncome Tax Demand raised by authorities for the period 1988-1989 to 1992 -1993 not accepted by the company amounting to Rs. 2,909 Lakhs. (Previous Year Rs. 2,909 Lakhs) the company has filed petition with the settlement commission under section 245 (C) of the Income Tax Act,1961, Any Adjustment required would be accounted in the year in which final order is received. And one case pertaining to A.Y 2012-2013 is pending with Commissioner of Income Tax (Appeal) for Rs 9.81 Lakhs (Previous Year Rs. 9.81. Lakhs).
b. During the year Ajmera Realty & Infra India Limited has given corporate guarantee Rs. 1500 Lakhs (Previous Year Rs. 1,500 Lakhs) to one of its Associate Ultratech Property Developers Private Limited towards financial facility of Rs. 1,500 Lakhs availed from Kotak Mahindra Bank Limited and also given corporate guarantee to one of Associate V.M. Procon Private Limited towards financial facility of Rs. 3,600 Lakhs (Previous Year Rs. 3,600 Lakhs) availed from Tata Capital financial Services Limited Rs. 1,500 Lakhs and Tata Capital Housing Finance Limited Rs. 2,100 Lakhs.
3 Deferred Taxation:
The Company has net Deferred Tax Assets of Rs. 713.13 Lakhs (Previous year Rs. 2,310.86 Lakhs) as on 31st March 2018 on account of set off after net MAT Credit till 31st March 2018. As a prudence policy the said Deferred Tax Assets has not been recognized which is in accordance with the Ind AS 12
Major components of deferred tax arising on account of timing differences are
4 Employee Benefit
Consequent to Ind AS 19 “Employee Benefits”, the company has reviewed and revised its accounting policy in respect of employee benefits.
The Company primarily deals in the business of Real Estate and hence there is no Primary reportable segment in the context of Ind AS 108.
5 Related Party Disclosures:
A. Name of Related Parties and Related Party Relationship
Key Management Personnel
i] Mr. Manoj I. Ajmera
(Managing Director)
ii] Mr. o. P. Gandhi
(Group Chief Financial Officer)
iii] Ms. Harshini D. Ajmera (Company Secretary)
B. Relatives of Key Management Personnel
- RUPAL M. AJMERA
- TANVI M. AJMERA
- RUSHI M. AJMERA
- ISHWARLAL S. AJMERA HUF
- JAYANT I. AJMERA
- MANOJ I. AJMERA HUF
- RITA MITUL MEHTA
- DILIP C. AJMERA
- JYOTI D. AJMERA
- RIDDHI D. AJMERA
- SUMAN O. GANDHI
- NUPUR O. GANDHI
- GAURAV O. GANDHI
C. Related Parties Where Control exists
Subsidiaries
i. Jolly Brothers Private limited
ii. Ajmera Estate Karnataka Private Limited
iii. Ajmera Mayfair Global W.L.L
iv. Ajmera Clean Green Energy Limited
v. Ajmera Realty Ventures Private Limited
vi. Ajmera Realcon Private Limited
vii. Laudable Infrastructure LLP
viii. Ajmera Corporation UK Ltd
ix. Radha Raman Dev Ventures Private Limited
x. SaNa Buildpro LLP
xi. SaNa Building Products LLP
xii. Ajmera Infra Developers LLP
D. Associates/Joint Ventures
i. Ajmera Housing Corporation Bangalore
ii V.M. Procon Private limited
iii. Sumedha Spacelinks LLP
iv. Ultratech Property Developers Private Limited
E. Other Related Parties
i. Ajmera Cement Private Limited
ii. Shree Precoated Steel Limited
F. Related Party Transactions:
a. Disclosure in respect of material transactions with related parties
6 Disclosure under Micro, Small and Medium Enterprises Development Act, 2006:
a) The principal amount Rs. 0.48 Lakhs (Previous Year Rs. NIL) and the interest due thereon is Rs. NIL (Previous Year Rs. NIL) remaining unpaid to any supplier at the end of each accounting year 2017-18
b) The amount of interest paid by the buyer in terms of section 16 of the Micro, Small and Medium Enterprises Development Act, 2006, along with the amount of the payment made to the supplier beyond the appointed day during each accounting year.
C) The amount of Interest due and payable for the period of delay in making payment but without adding the interest specified under the Micro, Small and Medium Enterprises Development Act, 2006
d) The amount of Interest accrued and remaining unpaid at the end of each accounting year Nil
e) The amount of further interest remaining due and payable even in the succeeding years until such date when the interest dues above are actually paid to the small enterprise, for the purpose of disallowance of a deductible expenditure under section 23 of the Micro, Small and Medium Enterprises Development Act, 2006 is Nil.
The above information and that given in note no.19 & 22 -“Trade Payables” regarding Micro and Small enterprises has been determined to the extent such parties have been identified on the basis of available with the company. This has been relied upon by the auditors
The Company has re - assessed the useful life of assets for the purpose of determination of depreciation in the manner prescribed under the Schedule II of the Companies Act, 2013.
7 Capital Management Policy
- Safeguard our ability to continue as a going concern, and
- Maintain an optimal capital structure to reduce the cost of capital
The Company monitors capital on the basis of the carrying amount of equity less cash and cash equivalents as presented on the face of balance sheet. The Company manages its capital structure and makes adjustments to it in the light of changes in economic conditions and the risk characteristics of the underlying assets. In order to maintain or adjust the capital structure, the Company may, subject to relevant permissions and compliances, adjust the amount of dividends paid to shareholders, return capital to shareholders or issue new shares.
* All the investments in subsidiaries, associates and joint ventures are stated at cost as per Ind AS 27 ‘Separate Financial Statements’.
Types of Risk and its management
The Group’s activities expose it to market risk, liquidity risk and credit risk. Board of Directors has overall responsibility for the establishment and oversight of the Group’s risk management framework. This note explains the sources of risk which the entity is exposed to and how the entity manages the risk and the related impact in the financial statements.
a. Credit Risk
The Company measures the expected credit loss of trade receivables based on historical trend, industry practices and the business environment in which the entity operates. Expected Credit Loss is based on actual credit loss experienced and past trends based on the historical data.
b. Liquidity Risk
Liquidity risk is the risk that the Group will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Group’s approach to managing liquidity is to ensure as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due.
Management monitors rolling forecasts of the Group’s liquidity position and cash and cash equivalents on the basis of expected cash flows. The Group takes into account the liquidity of the market in which the entity operates.
c. Foreign Currency Risk
The Group has international transactions and is exposed to foreign exchange risk arising from foreign currency transactions. Foreign exchange risk arises from recognized assets and liabilities denominated in a currency that is not the Group’s functional currency.
Foreign Exchange gain/loss has not been provided for advances made to foreign subsidiary
8 Capital and other commitments
Capital and other commitments on account of revenue as well as capital nature is Rs. 2,411.03 Lakhs (Previous Year Rs. 930.67 Lakhs)
9 Corporate Social Responsibility
Company has spent total of Rs. 79.05 Lakhs (Previous Year Rs. 58.61 Lakhs) during the financial year 2017-2018 towards Corporate Social Responsibility against the total requirement of Rs. 38.69 Lakhs (Previous Year Rs. 15.24 Lakhs)
The Balance in Debtors, Creditors, few Bank Accounts balances and Advances accounts are subject to confirmation and reconciliation, if any. However as per management opinion no material impact on financial statements out of such reconciliation is anticipated.
10 Subsequent events
There is no subsequent event reported after the date of financial statements.
Previous year financial statements have been audited by a firm other than M/s. Manesh Mehta & Associates
11 Regrouping of Previous Year Figures.
The company has regrouped / rearranged and reclassified previous year figures to conform to current year’s classification.
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