Gulf Oil Corp. The Company is part of the international Hinduja Group and has diversified business interests. The current business activities of the 50 year young Company are in 1) Lubricants, 2)Industrial Explosives,3) Mining & Infrastructure Services, and 4)Property Development. The Company operates through 4 major divisions with independent management structures.
On 4th Oct 2010 the company has announced that it has demerged its Industrial Explosives Division and the Latest AR talks about the Property Development :
Property Development at Bangalore has now started as the demand for properties has revived. Thedevelopment of 5.05 mn sq.ft. is being taken up and will cover hotel, retail outlets, commercial malls andserviced apartments. The construction work at Bangalore will commence in the current year. Further work onthe Hyderabad property was held up due to the 100 ft. connector road being fi nalised by the GHMC. This issue has recently been resolved and architectural work and development hasÂ commencedEstimated value of land bank is anywhere between 473 Cr. to Rs. 1800 Cr. THIS IS AS PER THE AUDITORS NOTE 27 OF SCHEDULE 18 IN THE LATEST AR 2009-10..REPRODUCED BELOW :
27. Land meant for property development situated at Bengaluru and Hyderabad had been revalued as at 31st March,2008, based on a valuation by an approved valuer. The resultant surplus on such revaluation amounting toRs. 183,896.69 Lakhs( RS. 1838 CRORES VS. MARKET CAP. OF JUST 1000 CRORES FOR ALL THE 4 BUSINESSES)Â had been credited to Revaluation Reserve in the previous years. In view of steep recession inthe realty sector, management has reassessed the valuation of the aforesaid properties as on 31st March, 2009 and based on the guidelines issued by the Registration and Stamps Department of Karnataka & Andhra Pradesh, the value of the subject lands has been reassessed and, the resultant surplus on revaluation amounted to Rs. 43799.82Lakhs.(438CR) The resultant write down aggregating to Rs. 140096.87 Lakhs (1400CR) has, in accordance with the requirement ofAccounting Standard-10 Accounting for Fixed assets been debited to Revaluation Reserve in the previous year.During the year, the Company has entered into Agreement to Sell 4.75 acres of land to IDL Speciality ChemicalsLimited. Since the aforesaid parcel of land is no longer meant for Property development, an amount of Rs. 1950.87Lakhs has been withdrawn from Revaluation Reserve.
Buy is recommended for long term..
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