colaba land mill co ltd Management discussions

THE COLABA LAND AND MILL COMPANY LIMITED ANNUAL REPORT 2008-2009 MANAGEMENT DISCUSSION AND ANALYSIS 1. OPERATION: Your Directors regret to report that the Company has suffered a loss of Rs. 35,02,443/- after providing depreciation of Rs. 1,56,835/-. 2. COMMENCEMENT OF NEW BUSINESS: The Company is planning to venture into prospective business relating to agriculture, horticulture, cultivation, plantation, development and selling of farmhouse, agro based industries and other farm product which will be beneficial to the Company and all its shareholders. 3. REVALUATION OF LANDED PROPERTIES: The Company has revalued the interest in its landed properties around March 2007 by an Architect, Engineer and Government Approved Valuer. The Valuer has considered the present value of ground rent receivable by the lessor during the unexpired period of lease along with the Present Market Value of land in reversion on expiry of lease. 4. ACQUISITION OF COMPANYS LAND: With regards to the Companys land at Colaba which is under acquisition, bearing C.S.No. 649 of Colaba Division, an award of Rs. 5,35,47,040/- was passed by the Special Land Acquisition Officer, and subsequently the said award amount of Rs. 5,35,47,040/- was deposited in the High Court of Bombay as per the order passed by the Honble Division Bench in June 1999. However, the acquiring body i.e. the B.M.C. after depositing the said award amount of Rs. 5,35,47,040/- filed a petition before the Honble Division Bench wherein they have challenged the said award itself. When the said Petition came up for admission before the Honble Division Bench an interim order was passed, wherein the Company was allowed to withdraw part of the award amount of Rs. 1,57,00,000/- deposited in the Court, subject to the Company filing an undertaking in the Court stating that the Company would bring back the said amount if so directed by the Court at the final hearing of the Petition. The Company has withdrawn the said amount of Rs.1,57,00,000/- in April 2001 after filing the written undertaking as directed by the Honble Division Bench. The said Writ Petition of the BMC challenging the said award was finally heard by the Division Bench and an order was passed in September 2005 wherein whilst disposing of the said petition, the Honble Division Bench has remanded the said matter back to the Special Land Acquisition Officer with directions to ascertain the market value in accordance with the provision of law and also permitting both the parties to lead whatever evidence they want to lead in support of their rival contention. The Honble Division Bench has also stated that with regards to the amount that has been deposited in the Court and invested, the same has to be continued to be invested till disposal of proceedings before the Special Land Acquisition Officer, and the amount which has been collected by the Company, the same too shall be subject to the final decision in the land acquisition proceedings.