Notes to Accounts of Shelter Infra Projects Ltd.

Mar 31, 2024

2.12. Provisions. Contingent Liability and Contingent Assets

Disputed liabilities and claims against the company including claims raised by
fiscal authorities (eg Vat. Income Tax, Service Tax etc.,) pending in
appeal/court for which no reliable estimate can be made and or involves
uncertainty of the outcome of the amount of the obligation or which are remotely
poised for crystallization are not provided for in accounts but disclosed in notes to

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However, present obligation as a result of past event with possibility of outflow of
resources, when reliable estimation can be made of the amount of obligation, is
recognized in accounts in terms of discounted value, if the time value of money is
material using a current pre-tax rate that reflects the risk specific to the liability.

No contingent asset is recognized but disclosed by way of notes to accounts.

2.13. Operating Segments

The Chief Operational Decision Maker monitors the operating results of its
business segments separately for the purpose of making decisions about
resource allocation and performance assessment. Segment performance is
evaluated based on profit and loss and is measured consistently with profit and
loss in the financial statements.

The Operating segments have been identified on the basis of the nature of
products/services.

a) Segment revenue includes sales and other income directly identifiable with
the segment including inter-segment revenue.

b) Expenses that are directly identifiable with the segments are considered for
determining the segment results. Expenses which relate to the Group as a
whole and not allocable to segments are included under unallocable
expenditure

c) Income which relates to the company as a whole and not allocable to
segments is included in unallocable income.

d) Segment result includes margins on inter-segment and sales which are
reduced in arriving at the profit before tax of the company.

e) Segment assets and liabilities include those directly identifiable with the
respective segments Unallocable assets and liabilities represent the assets
and liabilities that relate to the company as a whole and not allocable to any
segment.

2.14. Earnings per Share

Basic Earnings per share is calculated by dividing the total comprehensive
income for the period attributable to equity shareholders by the number of equity
shares outstanding during the period.

For the purpose of calculating diluted earnings per share, the net profit for the
period attributed to equity shareholders and the number of shares outstanding
during the period is adjusted for the effects of all dilutive potential equity

shares.

2.15. Borrowing Cost

Borrowing cost that are directly attributable to the acquisition, construction, or
production of a qualifying asset are capitalized as a part of the cost of such asset
till such time the asset is ready for its intended use or sale Borrowing cost
consists of interest and other costs that an entity incurs in connection with the
borrowing of funds. Borrowing costs also includes exchange differences to the
extent regarded as an adjustment to the borrowing costs. A qualifying asset is an
asset that necessarily requires a substantial period of time to get ready for its
intended use or sale. All other borrowing cost are recognized as expense in the
period in which they are incurred.

2.16. Cash and Cash Equivalents

For the purpose of presentation in the statement of cash flows, cash and cash
equivalents includes cash on hand, deposits held at call with financial institutions,
other short-term, highly liquid investments with original maturities of three months
or less that are readily convertible to known amounts of cash and which are
subject to an insignificant risk of changes in value.

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Mar 31, 2015

1. Reserves & Surplus

a) Property Revaluation Reserve :

The total adjustments to the Property Revaluation Reserve for the financial year ended 31/03/2015 amounts to Rs.2.17 lacs.

The figure comprises of Rs.0.26 lacs adjusted towards depreciation charged during the financial year ended 31/03/2015 on Revalued Fixed Assets as reflected in Note No. 8 – relating to Fixed Assets, forming part of the Balance Sheet.

The Balance amount of Rs.1.91 lacs relates to those revalued Fixed Assets, having zero useful life as on 1st April'2014, the amounts standing to the credit of revaluation reserve have been transferred to the general reserve.

b) The additions during the financial year ended 31/03/2015 to the General Reserve is Rs.4.72 lacs. The figure comprises of Rs.1.91 lacs, transferred from revaluation reserve, as explained in 2 (b) above. The balance amount of Rs.2.81 lacs relates to the deferred tax liabilities which have been reversed on those assets having zero remaining useful life as on 1st Arpil'2014 and transferred to the General Reserve.

The adjustments towards Fixed Assets having zero remaining useful life as on 1st April'2014, their carrying amounts totaling Rs.9.09 lacs, after retaining their residual value have been transferred to General Reserve. The same has been reflected on Note No. 8 relating to Fixed Assets, forming part of the Balance Sheet.

2. Depreciation

Effective from 1st April, 2014 the Company has charged depreciation on the Straight Line Method based on revised remaining useful life of the Fixed Assets as per the requirement of Schedule – II of the Companies Act, 2013. Whereas the company had charged depreciation based on the Written Down Value Method in the earlier Years. Due to the change in the method of calculation of Depreciation, the depreciation charge for the year ended on 31st March, 2015 is lower by Rs.14.41 Lacs.

3. Disclosure under Section 129 of the Companies Act, 2013

In view of pending one time settlement proposal with the Bank, interest from October, 2012 has not been considered as a stop gap arrangement and not as a deviation of AS1.

4. The company has three cash generating units in respect of income from House Property. These buildings are let out for commercial purposes for which prima-facie assessment of net selling price conducted by management works out to be higher than their carrying cost in the books, thereby ruling out the cause of any impairment loss there for.

5. Pending One time settlement proposal of Term Loan and Cash Credit with State Bank of India, Kolkata, the Company has considered interest on borrowing up to 30th September, 2012 in the books of accounts.. Interest from 1st October, 2012 to 31st March, 2015 as per Management's estimate amounts to Rs.1217.48 Lacs (Previous year Rs.747.45 lacs) which has not been accounted for. However the company is likely to get substantial relief in interest from the one time settlement proposal.

6. The company has made purchases from Micro & Small scale Industries during the year.

The principal amount outstanding as at the end of the year is 4.65 lacs(Previous year Rs.3.22 lacs) and no interest is due or payable on the said amount.

Segment Revenue, Results, Assets and Liabilities include respective amounts identifiable to each of the segments and amounts allocated on a reasonable basis.

7. Earning per share as per Accounting Standard on Earning per Share (AS-20) issued by the Institute of Chartered Accountants of India :-

8. The company was awarded two construction contracts by MES (Military Engineer Services),Kolkata Zone for setting up Infrastructure in Diamond Harbor and Haldia.

MES has during the financial year 2014-15 cancelled both the contracts. The company has initiated appropriate legal proceedings against the said cancellation. Effect of the dispute arising out the above is not ascertainable at this stage.

9. Figures for the previous year have been rearranged / regrouped where found necessary to make them comparable with those of the current year.

10. State Bank of India invoked securitization proceedings action thereof being pending initiation as Company's case is lying with Debt Recovery Tribunal and continuing negotiation of the management with bank for One Time Settlement.

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Mar 31, 2014

1. Contingent Liabilities :

Following are the details of contingent liabilities not provided for in the accounts :—

A) Outstanding Bank Guarantees amounting to Rs. 176.61 Lacs.(Previous Year Rs.244.98 Lacs).

B) Claim by sales Tax Authority disputed by the company Rs. 27.03 Lacs (Previous Year Rs.27.03 Lacs)

C) Claims made by customers by invoking Bank Guarantees but disputed by the company Rs.115.69 Lacs (Previous Year Rs.115.69 Lacs).

2 In terms of Accounting Standards on Related Party Disclosures (AS-18) issued by the Institute of Chartered Accountants of India, the company has identified Related Parties as under in transaction with Company :—

Name of the Related Party Description of relationship

Mr. Pradeep Kanti Lala Key Management personnel, being the Whole- time Director of the Company (from 01.05.2012)

Ramayana Promoters Pvt ltd Company excercising significant influence (Associate concern )

Bengal Shelter Housing Associate concern Development Ltd

Barnaparichay Book Mall Associate concern ( P ) Ltd

Max Cement (P) Ltd. Associate concern

Segment Revenue, Results, Assets and Liabilities include respective amounts identifiable to each of the segments and amounts allocated on a reasonable basis.

3. Earning per share as per Accounting Standard on Earning per Share (AS-20) issued by the Institute of Chartered Accountants of India :—

4 The company has three cash generating units in respect of income from House Property. These buildings are let out for commercial purposes for which prima-facie assessment of net selling price conducted by management works out to be higher than their carrying cost in the books, thereby ruling out the cause of any impairment loss therefor.

5 Remuneration paid to Whole-time Director, Mr. P. K. Lala from 1st May, 2012 to 31st July, 2013 amounting to Rs. 20.70 Lacs is subject to approval by the Central Government as per requirement of Section 198(4) of the Companies Act, 1956.

6 Pending re-structuring of Term Loan and Cash Credit with State Bank of India, Kolkata, the Company has considered interest on borrowing up to 30th September, 2012. Interest from 1st October, 2012 to 31st March, 2014 as per Management estimate amounts to Rs.747.45 (including Rs.600.75 for the year 2013 - 14) which has not been accounted for. However the company is likely to get substantial relief in interest from the ongoing restructuring process.

7 The company has made purchases from Micro & Small scale Industries during the year.

The principal amount outstanding as at the end of the year is Rs. 3.22 lacs and no interest is due or payable on the said amount.

8 Figures for the previous year have been rearranged / regrouped where found necessary to make them comparable with those of the current year.

9 Disclosure pursuant to Accounting Standard 7 - "Construction Contracts"

In terms of the disclosures required to be made under the Accounting Standard 7 for "Construction Contracts", the amounts considered in the financial statements up to the Balance Sheet date are as follows.

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Mar 31, 2013

1. Contingent Liabilities :

Following are the details of contingent liabilities not provided for in the accounts :-

A) Outstanding Bank Guarantees amounting to Rs. 244.98 Lacs. (Previous Year Rs.249.25 Lacs].

B) Claim by sales Tax Authority disputed by the company Rs. 27.03 Lacs [Previous Year Rs.27.03 Lacs]

C) Claims made by customers by invoking Bank Guarantees but disputed by the company Rs.115.69 Lacs (Previous Year Rs.115.69 Lacs].

2. In terms of Accounting Standards on Related Party Disclosures [AS-18] issued by the Institute of Chartered Accountants of India, the company has identified Related Parties as under in transaction with Company :-

3. Earning per share as per Accounting Standard on Earning per Share (AS-20) issued by the Institute of Chartered Accountants of India :-

4. The company has three cash generating units. The first relates to construction activities. The rest two are buildings, let out for commercial purposes for which prima-facie assessment of net selling price conducted by management works out to be higher than their carrying cost in the books, thereby ruling out the cause of any impairment loss therefor.

Regarding construction activities, for want of any indication of impairment within the meaning of clause 5 to 13 of the Accounting Standard AS-28 issued by the Institute of Chartered Accountants of India, no exercise of impairment has been undertaken for the same.

5. Remuneration paid to Whole-time Director, Mr. P. K. Lala from 1st May, 2012 to 31st March, 2013 amounting to Rs. 15.94 Lacs is subject to approval by the Central Government as per requirement of Section 198(4] of the Companies Act, 1956.

6. Pending re-structuring of Term Loan and Cash Credit with State Bank of India, Kolkata, the Company has considered interest on borrowing upto 30th September, 2012. The amount of interest since lif October, 2012 not considered in this account amounts to Rs. 146.70 Lacs as per management estimate.

7. The company did not make any purchase from Micro & Small scale Industries during the year.

8. Figures for the previous year have been rearranged / regrouped where found necessary

Notes 1 to 13 Signed by the Following

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Mar 31, 2012

1. Contingent Liabilities :

Following are the details of contingent liabilities not provided for in the accounts :-

A) Outstanding Bank Guarantees amounting to Rs.249.25Lacs. (Previous Year Rs. 255.15 Lacs).

B) Claim by sales Tax Authority disputed by the company Rs.27.03 Lacs (Previous Year Rs.18.56 Lacs)

C) Claims made by customers by invoking Bank Guarantees but disputed by the company Rs.115.69Lacs (Previous Year Rs.115.69 Lacs).

2. Disclosure under Section 211(3B) of the Companies Act, 1956 :

The Company will be arranging for actuarial valuation of Gratuity Liability as required under AS-15 issued by ICAI from the ensuing Financial Year.

b) The Company contends that its activities relates to services under construction contracts and rental of house property and accordingly details regarding consumption of material, working progress as per Para 5 of Part II to Schedule VI are not applicable to the Company.

3. In terms of Accounting Standards on Accounting for Leases (AS-19) issued by the Institute of Chartered Accountants of India, the company has acquired two nos. of Motor Cars & Machinery for Projects under Lease Finance Scheme and one other motor car purchased during earlier year under the hire purchase scheme. Total amount of Rs.5.77 Lacs has been charged to Profit & Loss Account during the year. (Amount payable during next one year Rs.34.55 Lacs; during next two years Rs.15.45 Lacs).

Segment Revenue, Results, Assets and Liabilities include respective amounts identifiable to each of the segments and amounts allocated on a reasonable basis.

4. The company has three cash generating units. The first relates to construction activities. The rest two are buildings, let out for commercial purposes for which prima-facie assessment of net selling price conducted by management works out to be higher than their carrying cost in the books, thereby ruling out the cause of any impairment loss there fore.

Regarding construction activities, for want of any indication of impairment within the meaning of clause 5 to 13 of the Accounting Standard AS-28 issued by the Institute of Chartered Accountants of India, no exercise of impairment has been undertaken for the same.

5. The company did not make any purchase from Micro & Small scale Industries during the year.

6. Figures for the previous year have been rearranged / regrouped where found necessary

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Mar 31, 2010

1. Contingent Liabilities not provided for:

Outstanding Bank Guarantees (net) amounting to Rs.50,209,524/- (Previous Year Rs. 4,28,65,199/-), which are secured by a charge on certain Fixed Deposits, hypothecation of all Current and Movable Assets, mortgage of Companys Land and Building at Plot No. 163, Block - IB, Sector- III and Plot No. 1, Block - DN, Sector - V, Salt Lake, Kolkata - 700 091, guarantee by Ramayana Promoters Private Limited and Banaphool Infotech Private Limited, and personal guarantee of Mr. Samar Nag, Chairman of this Company.

2. Disclosure under Section 211(3B) of the Companies Act, 1956 :

i) The Company has executed construction contracts during the year on which Accounting Standard (AS-7) "Construction Contracts" (revised 2002) issued by the Institute of Chartered Accountants of India is applicable.

All the construction contracts executed by the Company during the year are Item Rate Contracts where specified rates are mentioned for each item of the Contracts. The Company raises bills on completion of such items, which can not be treated as lump sum progress payment. Revenue is recognized only on completion of any item, which are either certified by the client or awaiting certification at the year end and for which matching expenses are accounted for in the accounting year. The Company has incurred a sum of Rs. 171110594/- towards cost and recognized the profit to the tune of Rs. 35896966/-. Company has received a sum of Rs. 16037994/- towards advances from clients and a sum of Rs. 33007937/- has been deducted from us by clients as retention and security deposit.

There is a change in the accounting practice with reference to revenue recognition from construction work which has been accounted for in strict comformity with AS-7 (Revised) unlike last year. This change in accounting policy has no impact in the profit of the company.

ii) Considering receipt of report from LIC on Gratuity liability in year closing context there is hardly any scope of expense leakage in this regard vis-vis AS-15 (Revised). However details computiation by actuary under unit project cost assumption will be conducted from next fin ancial year so as to technically adhere to disclosure requirement envisaged under AS-15 (Revised).

3. Information required by paragraphs 3 & 4D of Part - II of Schedule - VI :

b) The Company contends that its activities being rendering supplying services covered under Para 3(ii)(c) of Part-ll of Schedule-VI of the Companies Act, 1956, quantitative break-up of materia] consumed, production, turnover, licenses and installed capacities are not required to be given in the accounts.

c) Expenditure in Foreign Currency - Foreign Travel Rs.Nil (Previous Year Rs. NIL)

4. In terms of Accounting Standards on Related Party Disclosures (AS-18) issued by the Institute of Chartered Accountants of India, the company has identified Related Parties as under in transaction with Company :-

Name of the Related Party Description of relationship

Mr. Sisir Kumar Saha Key Management personnel being the Whole-time Director of the Company

Mr. Mahiruha Mukherjee Key Management personnel being the Whole-time Director of the Company

Mr. Chirantan Mukherjee Person exercising significant influence

Banaphool Infotech Company owned by one holding significant influence

(P) Ltd.

New Central Group Engineering Company owned by one holding significant influenc

(P) Ltd.

Ramayana Promoters Company exercising significant influence Private Limited.

5. In terms of Accounting Standards on Accounting for Leases (AS-19) issued by the Institute of Chartered Accountants of India, the company has acquired a motorcar under hire purchase scheme during the year, apart from two other motor cars purchased during earlier year under the hire purchase scheme. Total amount of Rs. 481730/- has been charged to Profit & Loss Account during the year. (Amount payable during next one year Rs. 455136/-, during next two years. Rs. 398513/-).

6. The company has three cash generating units. The first relates to construction activities. The rest two are buildings, let out for commercial purposes for which prima-facie assessment of net selling price conducted by management works out to be higher than their carrying cost in the books, thereby ruling out the cause of any impairment loss therefore.

Regarding construction activities, for want of any indication of impairment within the meaning of clause 5 to 13 of the Accounting Standard AS-28 issued by the Institute of Chartered Accountants of India, no exercise of impairment has been undertaken for the same.

7. Comapany has written to parties of Debtors, Creditors and Advance for confirmation of balances, out of which some are still pending.

8. Figure for the previous year have been rearranged/regrouped where found necessary.