Notes to Accounts of Prime Property Development Corporation Ltd.

Mar 31, 2024

x. Company has given Corporate Guarantee on behalf of its subsidiary - Sea-king Club Pvt. Ltd. to Banking Company of Rs. 26.25 crore

xi. Benami Property Disclosure:

The Company does not hold any Benami property.

xii. Disclosures relating to the material discrepancies in quarterly statements submitted to bank and books of accounts -

During the year company has not availed borrowings from any banks or financial

institutions. Accordingly this disclosure is not applicable.

xiii. Disclosure related to Willful Defaulter declared by the Bank or Financial

Institutions - Not Applicable

xiv. Disclosure related to Transaction with Struck off companies - No Transactions with any struck off companies

xv. Disclosure related to Charges - Not Applicable

xvi. Disclosure regarding compliance with number of layers of companies - Not Applicable

xvii. Disclosure related to the compliance with approved scheme of Amalgamation - Not

Applicable

xviii. Disclosure related to various ratios - Separate Annexure has been attached along with the notes

xix. Disclosure related to Utilisation of Borrowed funds and Share Premiums - Not

Applicable

xx. Disclosure related to Undisclosed Income - Not Applicable

xxi. Disclosure related to Corporate Social Responsibility - Not applicable due to loss for earlier years and inadequate profit for the current year

xxii. Disclosure related to Crypto Currency / Virtual Currency - Not Applicable

xxiv. Deferred Tax Liability / Assets (Net):

In accordance with Ind-AS 12 - Income Taxes, the provision for deferred tax asset and

liability has been shown as an income / expense for the Current year. The component of deferred tax liability and assets is as under:

xxvi. Miscellaneous

The Company has reclassified & regrouped previous year''s figures to conform to this year''s classification.

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Mar 31, 2023

(n) Provisions and 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. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

Note: 3

Other additional disclosures i.Capital Commitments:

The Company does not have any capital commitments as on 31.03.2023 ii.Remuneration to Employee:

The Company has no employee in receipt of remuneration exceeding the limits Prescribed under the Companies Act 2013

iv.Employees Benefit Plans:

During the year company has made provision for the gratuity by adopting actuarial valuation. Company has not made any contribution to any gratuity fund.

The following table sets out the status of gratuity valuation for the year ended 31^st March, 2023.

x. After sincere efforts by the Management of the Company for old recovery dues, The company has manage to recover during the year amount of Rs. 2.50 crores from an old party pertaining to earlier project of the Company, which was then considered as Bad Debts (Project cost) in the Books of Accounts. The Bad Debts recovery is recorded as income in the Financial Statements during the current financial year.

Further, any recovery from any such old parties shall be considered as income in the year of actual receipt by the Company.

xi.During the year, the Company has given Corporate Guarantee on behalf of its subsidiary - Sea-king Club Pvt. Ltd. to Banking Company of Rs. 26.25 crore.

xii. Benami Property Disclosure:

The Company does not hold any Benami property.

siii. Disclosures relating to the material discrepancies in quarterly statements submitted to bank and books of accounts -

During the year company has not availed borrowings from any banks or financial institutions. Accordingly this disclosure is not applicable.

xiv. Disclosure related to Willful Defaulter declared by the Bank or Financial Institutions - Not Applicable

xv. Disclosure related to Transaction with Struck off companies - No Transactions with any struck off companies

xvi. Disclosure related to Charges - Not Applicable svii. Disclosure regarding compliance with number of layers of companies - Not Applicable

viii. Disclosure related to the compliance with approved scheme of Amalgamation - Not Applicable

xix. Disclosure related to various ratios - Separate Annexure has been attached along with the notes

xx. Disclosure related to Utilization of Borrowed funds and Share Premiums - Not Applicable

xxi. Disclosure related to Undisclosed Income - Not Applicable

xxii. Disclosure related to Corporate Social Responsibility - Not applicable due to loss for earlier years and inadequate profit for the current year

xxiii. Disclosure related to Crypto Currency / Virtual Currency - Not Applicable

xxvii.Miscellaneous

The Company has reclassified & regrouped previous year''s figures to conform to this year''s classification.

Signatures to Schedules

As Per our attached report of even date On behalf of the Board of Directors

For VORA & ASSOCIATES

CHARTERED ACCOUNTANTS PADAMSHI L. SONI CHAIRMAN

(ICAI Firm Regn. No. 111612W) (DIN No: 00006463)

SATENDRA BHATNAGAR INDEPENDENT DIRECTOR

(DIN No. 01813940)

MANISH P. SONI WHOLE TIME DIRECTOR

RONAK A. RAMBHIA (DIN No. 00006485)

PARTNER

(Membership No. 140371) VISHAL P. SONI WHOLE TIME DIRECTOR

(DIN No. 00006497)

AMIT BHANSALI CHIEF FINANCIAL OFFICER

KUMAR G. VORA CHIEF EXECUTIVE OFFICER

NIKITA A SHAH COMPANY SECRETARY

Place: Mumbai (Membership No.: A44264)

Date: 20/05/2023

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Mar 31, 2018

1. Corporate Information:

Prime Property Development Corporation Limited (“The Company”) is a public company, incorporated under the provisions of the Companies Act 1956, The Company is registered on the Bombay Stock Exchange in India. The registered office of the company is located at 101, Soni House, Plot No. 34, Gulmohar Road No.1, Juhu Scheme, Vile Parle West, Mumbai - 400049.

The Company is principally engaged in the business of real estate and property development.

Note: 2

Other additional disclosures

i. Capital Commitments:

The Company does not have any capital commitments as on 31.03.2018

ii. Remuneration to Employee:

The Company has no employee in receipt of remuneration exceeding the limits prescribed under the Companies Act 2013,

iii. Foreign Exchange Earnings & Outgo:

The details of Foreign Exchange earnings / outgo are as below:

iv. Employees Benefit Plans:

During the year company has made provision for the gratuity by adopting actuarial valuation. Company has not made any contribution to any gratuity fund, The following table sets out the status of gratuity valuation for the year ended 31st March, 2018.

v. Segment Reporting:

The Company has mainly one reportable business and one geographical segment and hence no further disclosure is required under Ind-AS 10 -Operating Segments.

xi. Miscellaneous

The Company has reclassified & regrouped previous year''s figures to conform to this year''s classification.

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Mar 31, 2016

c ) Terms / Rights attached to the Equity Shares

The Company has only one class of Equity Shares having a par value of '' 5/- per share. Each Share Holder is eligible for one vote per share held. The dividend proposed by the Board of Director is subject to the approval of the Shareholders in the ensuing Annual General Meeting. In the unlikely event of liquidation of the Company, the holders of the Equity Shares will be entitled to receive any of the remaining assets of the Company after distribution of all preferential amounts, in proportion to the number of equity shares held by the equity shareholders.

Note: 1

Other additional disclosures

i. Contingent Liabilities:

The company has self estimated and provided MVAT liability of Rs.5,00,00,000/- during the previous year pertaining to F.Y. 2006 to FY. 2011. The tax assessment is pending by authorities, any shortfall or excess tax liability determined on completion of assessment by the competent authority will be booked in the year of receipt of assessment order.

ii. Capital Commitments:

The Company does not have any capital commitments as on 31.03.2016

iii. Remuneration to Employee:

The Company has no employee in receipt of remuneration exceeding the limits prescribed under the Companies Act 2013.

vi. Segment Reporting:

The Company has mainly one reportable business and geographical segment and hence no further disclosure is required under Accounting Standard (AS) 17 on Segment Reporting issued by the Institute of Chartered Accountants of India (ICAI).

xi. Miscellaneous

The Company has reclassified & regrouped previous year''s figures to conform to this year''s classification.

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Mar 31, 2015

Note: 1

Other additional disclosures

i. Contingent Liabilities:

a) Corporate Guarantees given to the bankers by the Company is NIL. (P.Y. Rs. 44,480/-).

b) The total VAT liability determined on completion of VAT assessment after considering provision made by the Company is considered as contingent liability.

ii. VAT Rs. 6,18,78,303 includes provision made for earlier years of Rs. 5 Crores as per estimated liability for FY. 2006 to 2011, pending VAT assessment by the authorities.

iii. Capital Commitments:

The Company does not have any capital commitments as on 31.03.2015

iv. Remuneration to Employee:

The Company has no employee in receipt of remuneration exceeding the limits prescribed under the Companies Act 2013.

xii. Miscellaneous

a) The Company had a Debt of Rs.17,00,000/- arising from Sale of Property in the year 2007 - 2008. The same was considered as doubtful for recovery in the previous year, is now written off as irrecoverable.

b) The Company has reclassified & regrouped previous year's figures to conform to this year's classification Signatures to Schedules As Per our attached report of even date

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Mar 31, 2014

I. Contingent Liabilities:

a) Corporate Guarantees given to the bankers by the Company on behalf of the Wholly Owned Subsidiary Company Sea-King Club Private Ltd in respect of Credit facilities availed aggregating to Rs. 50 crores (Balance as on 31.03.2014 is Rs. 44,480) (PY Rs. 6.59crores).

b) The Company has filed Writ Petition in Bombay High Court against State of Maharashtra Value Added Tax Act, 2002 for the financial year 2006- 2007 to 2009-2010 in the month of April 2014 challenging the method of Valuation required to calculate taxability under Maharashtra Value Added Tax. The liability of Maharashtra Value Added Tax is not assessed by the department and cannot be properly calculated by company, due to uncertainty. The tax liability thereon, if any, cannot be reliably estimated till the outcome of the petition and has not been provided for.

ii. Capital Commitments:

The Company does not have any capital commitments as on 31.03.2014

iii. Requirements of Section 217 (2A) of the Companies Act, 1956;

The Company has no employee in receipt of remuneration exceeding the limits prescribed under the companies act.

iv. Foreign Exchange Earnings & Outgo:

Additional Information pursuant to provisions of Para 3 and 4 of Schedule VI of the Companies Act, 1956.

v. Fixed Assets:

The Company had purchased property at Vile parle (west) in the financial year 2004-2005 at a cost of Rs. 92,556,871/- which was given on rent and same was treated as fixed asset. Subsequently, the building was demolished and reconstructed. Construction of the building was completed in the current financial year and part of it was sold in the normal course of business. The remaining part will be sold in the normal course of business. Hence, it cannot be treated as Fixed Asset as per the definition of Fixed Asset given in the Accounting Standard 10 issued by Institute of Chartered Ac countants of India. Accordingly, WDV of Fixed assets Rs 78,363,998/- and Cost of Construction Rs.151,636,002/- appearing under capital Working progress is transferred to Inventory.

During the year company has made provision for the gratuity by adopting actuarial valuation. Company has not made any contribution to any gratuity fund. The following table sets out the status of gratuity valuation for the period ended 31st March, 2014 as required under AS 15 (Revised)

vi. Segment Reporting:

The Company has mainly one reportable business and geographical segment and hence no further disclosure is required under Accounting Standard (AS) 17 on Segment Reporting issued by the Institute of Chartered Accountants of India (ICAI).

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Mar 31, 2013

I. Contingent Liabilities :

Corporate Guarantees given to the bankers by the Company on behalf of the Wholly Owned Subsidiary Company Sea-King Club Private Ltd in respect of Credit facilities availed aggregating to Rs. 50 crores (Rs. 6.59 crores withdrawn till 31.03.2013 by Subsidiary Company) (P.Y. Rs. 6.59crores)

The Income Tax Department has appealed against the order of Commissioner of Income Tax (Appeals) for A.Y. 2007-08 to the Income Tax Appellate Tribunal (ITAT). The decision of ITAT is awaited. Therefore, the Liability of Tax and interest thereon if any, is unascertainable

ii. Capital Commitments:

The Company does not have any capital commitments as on 31.03.2013

iii. Requirements of Section 217 (2A) of the Companies Act,1956:

The Company has provided Rs. 105 lacs towards proposed commission to chairman for the year 2013.

iv. Segment Reporting:

The Company has mainly one reportable business and geographical segment and hence no further disclosure is required under Accounting Standard (AS) 17 on Segment Reporting issued by the Institute of Chartered Accountants of India (ICAI).

v) Miscellaneous

a) Company does not have agreement with employee for any retirement benefits. The gratuity liability till date has been estimated by the management as per the Payment of Gratuity Act. However, the Company is still in process of obtaining the actuarial valuation report and makes its investment.

b) The Company has reclassified & regrouped previous year''s figures to conform to this year''s classification.

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Mar 31, 2012

A) Terms / Rights attached to the Equity Shares

The Company has only one class of Equity Shares having a par value of Rs. 5/- per share. Each Share Holder is eligible for one vote per share held. The Dividend proposed by the Board of Directors is subject to the approval of the Shareholders in the ensuing Annual General Meeting. In the unlikely event of liquidation of the Company, the holders of the Equity Shares will be entitled to receive any of the remaining assets of the Company after distribution of all prefrential amounts, in proportion to the number of equity shares held by the equity shareholders.

i) The Company has availed Cash Credit facility amounting to Rs. 35 crores from State Bank of India. The cash credit facility is secured by the equitable mortgage by deposit of title deeds in favor of the Company's bankers & Hypothecation of receivables and stock of work in progress of the Prime Business Park, Vile Parle (W) & Prime Mall, Pune property.

The cash credit facility is also secured by personal guarantees of Shri P. L. Soni, Shri Manish P. Soni and Shri Vishal P. Soni, Promoter Directors of the Company.

The Company has already repaid its cash credit facility amounting to Rs. 25 crores and released the title deeds of Prime Mall, Pune project.

ii) The Company has outstanding loan for its motor car of Rs. 24,50,375/- taken from Kotak Mahindra Prime Limited which is registered in the name of the Director of the Company. Vehicle loan is secured against Motor Car. Balance Repay able in 10 installment of Rs. 2,52,600/- each payable on 10th of every month, maturing in Jan-2013.

Vehicles loan of Rs 24.50 Lacs (Previous Year 27.66 lacs) falls due for repayment within one year.

i. Contingent Liabilities :

Corporate Guarantees given to the bankers by the Company on behalf of the Wholly Owned Subsidiary Company Sea-King Club Private Ltd in respect of Credit facilities availed aggregating to Rs. 50 crores (Rs. 6.59 crores withdrawn till 31.03.2012 by Subsidiary Company) (P.Y. Rs.6.62 crores).

Due to loss of writ against State of Maharashtra, by Maharashtra Chamber of Housing Industry (MCHI) on April 10, 2012 Company may be now liable to pay Maharashtra Value Added Tax (MVAT) from financial year 2006-07. Company may be liable to pay MVAT as soon as same are decided/worked out by the authorities. The tax demand shall be paid and claimed as expenses in the year of actual payment.

However, MCHI has filed a petition with Supreme Court and the judgment is still awaited. Liability for the same cannot be crystallized due to uncertainty of the amount.

ii. Segment Reporting:

The Company has mainly one reportable business and geographical segment and hence no further disclosure is required under Accounting Standard (AS) 17 on Segment Reporting issued by the Institute of Chartered Accountants of India (ICAI).

iii) Miscellaneous

a) Gratuity payment is accounted on actual payment basis as per company policy. However as per the payment of Gratuity Act 1972, the amount accured as on 31/03/2012 should not exceed Rs. 32 Lacs.

b) Foreign Exchange Earnings & Outgo: There is no expenditure / earnings in foreign exchange for the current year (Previous year Rs. NIL)

c) Requirements of Section 217 (2A) of the Companies Act, 1956: The Company has no employee in receipt of remuneration exceeding the limits prescribed u/s 217 (2A) of the Companies Act, 1956.

d) To Comply with Revised Schedule VI, Previous year's figures are regrouped / recast wherever necessary.

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Mar 31, 2011

I. Secured Loans:

a) During the year Company has availed Cash Credit facility amounting to Rs. 35 crores from State Bank of India. The cash credit facility is secured by equitable mortgage in favor of the Company’s bankers & Hypothecation of receivables and stock of the Prime Business Park, Vile Parle (W) & Prime Mall, Pune property. The cash credit facility is also secured by personal guarantees of Shri. P. L. Soni, Shri. Manish P. Soni and Shri. Vishal P. Soni, Promoter Directors of the Company.

b) Vehicles loan of Rs 27.66 Lacs (Previous Year 25.88 lacs) falls due for repayment within one year.

ii. The Company has mainly one reportable business and geographical segment and hence no further disclosure is required under Accounting Standard (AS) 17 on Segment Reporting issued by the Institute of Chartered Accountants of India (ICAI).

iii. Contingent Liabilities: Corporate Guarantees given to the bankers by the Company on behalf of the Subsidiary Company Sea-King Club Private Ltd in respect of Credit facilities availed aggregating to Rs. 50 crores (Rs. 6.59 crores withdrawn during the year by Subsidiary Company)

iv. The Company has purchased a Motor Car for Rs.1,06,09,446/ - and taken a loan thereon from Kotak Mahindra Prime Limited of Rs. 80,47,400/ -which is registered in the name of Director of the Company.

v. During the year Company has given an interest free loan amounting to Rs. 85,63,142/ - to subsidiary company for redevelopment of its hotel building.

vi. Other Liabilities includes Rs. 5,00,00,000/ - for the business expediency and are payable by the Company.

vii. Balances appearing under the head Sundry Creditors are subject to confirmation and reconciliation.

viii. During the year Company has written off Rs.1,25,000/ – as bad debts and written back Rs. 16,67,788/ - in the books which are incidental to the business of the Company.

ix. During the year additional expenses of Rs. 3,01,46,252/-incurred on the property at Vile Parle (W) which is under the Fixed assets block and no depreciation is charged on the property being Capital Work in Progress.

x. During the year no expenses incurred & charged against the income received from Dividend on shares.

xi. Gratuity payment is accounted on cash basis as per policy; hence no provision is made for the same.

xii. Additional Information Pursuant To Section 217(1) To The Companies Act, 1956: The Licensed capacity, installed capacity and actual production, opening and closing stock of finished goods, Sale of finished goods and Raw and Packing Material consumed in quantity and value, Classification of Raw and Packing Materials consumed, are not relevant to the Company since it is engaged in civil construction and real estate development business.

xiii. Micro, Small and Medium Enterprise:

The creditors of micro, small and medium enterprise are timely paid as per terms of contract and there are no over dues to any enterprise, hence,

xv. As no Commission is payable to Chairman, the computation of the net profits in accordance with the section 309 (5) read with section 349 of the Companies Act, 1956 of India has not been given.

xvi. Related Parties Disclosures Under Accounting Standard 18 Of ICAI:

(A) Particulars of Party where control exists / Relative of parties where control exists:

Name of the Related Party Nature of Relationship

(i) M/s. Prime Property Developers Proprietor Firm in which control exists

(ii) M/s Sea-King Club Private Wholly-owned Subsidiary Company Limited

(B) Key Management Personnel:

Shri. Padamshi L. Soni Chairman

Shri. Manish P. Soni Whole Time Director

Shri. Vishal P. Soni Whole Time Director

Shri. Alok A. Chowdhury Whole Time Director & CEO

xvii. Foreign Exchange Earnings & Outgo:

There is no expenditure / earnings in foreign exchange for the current year (Previous year Rs. NIL)

xviii. Requirements of Section 217 (2A) of the Companies Act, 1956

The Company has no employee in receipt of remuneration exceeding the limits prescribed u/s 217 (2A) of the Companies Act, 1956.

xix. Deferred Tax Liability / Assets:

In accordance with Accounting Standard 22, relating to "Accounting on Taxes on Income”, the deferred tax asset of Rs. 1,50,55,531/ - for the current year has been shown as income for the Current year. The component of deferred tax liability and assets is as under:

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Mar 31, 2010

I. Secured Loans:

a) During the year Company has repaid its Outstanding Term Loan of Rs. 698.74 lacs taken from Syndicate Bank.

b) Vehicles loan of Rs 25.88 Lacs (Previous Year 12.45 lacs) falls due for repayment within one year.

ii. The Company has mainly one reportable business and geographical segment and hence no further disclosure is required under Accounting Standard (AS) 17 on Segment Reporting issued by the Institute of Chartered Accountants of India (ICAI).

iii. In the opinion of the Directors there were no contingent liabilities as at the Balance Sheet date.

iv. During the year, Company has acquired business and 100% Equity shares of a Private Limited Company namely, Sea-King Club Private Limited for amounting to Rs. 30.10 crores.

v. During the year Company has written off in the books Rs. 13,24,331/- as bad debts which are incidental to the business of the Company

vi. During the year Vile Parle (W) property under the fixed assests blocks was demolished and additional expenditure of Rs. 1,52,75,867/- incurred for reconstruction of the said fixed assets. No depreciation is charged on the property being Capital work in progress. Estimated contract remaining to be executed on capital Expenditure amounting to Rs.1,300 lakhs for fixed assests are not provided as being work in progress of project.

vii. Other Income includes Rs. 500,000/- realization of amount written back of earlier year.

viii. During the year no expenses incurred & charged against the income received from Dividend on shares.

ix. Gratuity payment is accounted on cash basis as per policy; hence no provision is made for the same.

x. Additional Information Pursuant to Section 217(1) to the Companies Act, 1956:

The Licensed capacity, installed capacity and actual production, opening and closing stock of finished goods, Sale of finished goods and Raw and Packing Material consumed in quantity and value, Classification of Raw and Packing Materials consumed, are not relevant to the Company since it is engaged in civil construction and real estate development business.

xi. Micro, Small and Medium Enterprise:

The creditors of micro, small and medium enterprise are timely paid as per terms of contract and there are no over dues to any enterprise, hence, no provision of any interest is made.

xii. Related Parties Disclosures Under Accounting Standard 18 Of ICAI:

(A) Particulars of Party where control exists / Relative of parties where control exists:

Name of the Related Party Nature of Relationship

(i) M/s. Prime Property Developers Proprietor Firm in which control exists

(ii) M/s Sea-King Club Private Limited Wholly-owned Subsidiary Company

(B) Key Management Personnel:

Nature of Relationship

(i) Mr. Padamshi L. Soni Chairman

(ii) Mr. Manish P. Soni Whole Time Director

(iii) Mr. Vishal P. Soni Whole Time Director

(iv) Mr. Alok A. Chowdhury Whole Time Director & CEO

xiii. Previous years figures are regrouped / recast wherever necessary.