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Notes to Accounts of Madhucon Projects Ltd.

Mar 31, 2015

1. The long term unquoted investments in equity shares of subsidiary companies as given hereunder and included in Note No.2.10 are pledged with Banks and Financial Institutions which have extended loan facilitates to the respective investee companies.

2. Segmental Reporting:

The Company's operations predominantly consist of construction/project activities. Hence there are no reportable segments under Accounting Standard–17.

3. Joint Ventures:

The Company has interest in the following Joint Ventures: Madhucon Sino-Hydro JV

4. Micro & Small Enterprises: The Management has taken steps to identify the enterprises which have provided goods & services to the company and which qualify under the definition of Micro and Small Enterprises, as defined under Micro, Small and Medium Enterprises Development Act, 2006. Accordingly, the disclosure in respect of the amounts payable to such enterprises as on 31st March, 2015 has been made in the financial statements based on information received and such amount outstanding as on 31st March, 2015 to Micro and Small Enterprises is NIL, which the auditors have relied upon. Further, in the view of the Management, the impact of interest, if any, that may be payable in accordance with the provisions of the Act is not expected to be material.

5. In accordance with Accounting Standard 11(revised)the net exchange gain/(Loss) Credited to profit & loss account is Rs.361.94 Lakhs (previous year net exchange loss debited Rs.119.78 lakhs) and foreign exchange difference (net) on capital account included in the cost of respective asset is Rs. Nil (previous year: Rs. Nil ).

6. Additional information pursuant to the provisions of Schedule III to the Companies Act, 2013 (wherever applicable).

7. Related Party Transactions:

(I) Following are the list of related parties

A. Subsidiary Company

1. Madhucon Infra Limited

2. Madurai – Tuticorin Expressways Limited

3. Madhucon Energy Limited.

4. Madhucon Mega Mall Private Limited

5. Nama Hotels Private Limited

6. Madhucon Heights Private Limited

7. Agastyamuni Hydro Power Private Limited

8. Rudraprayag Hydro Power Private Limited

9. Tilwara Hydro Power Private Limited

10.PT Madhucon Sriwijaya Power

B. Step down Subsidiaries

11. TN (DK) Expressways Limited

12. Trichy - Thanjavur Expressways Limited

13. Madhucon Agra-Jaipur Expressways Limited

14. Chhapra Hajipur Expressways Limited

15. Barasat-Krishnagar Expressways Limited

16. Ranchi Expressways Limited

17. Simhapuri Energy Limited

18. Madhucon Toll Highways Limited

19. Vijayawada-Machilipatnam Expressways Limited

20. Rajauli Bakthiyarpur Expressways Limited

21. PT Madhucon Indonesia

C. Associates

22. M.B.N. Anchored Earth Limited

23. Madhucon Properties Limited.

24. Ramnagar Power Private Limited

25. Madhucon Sugar & Power Industries Limited

D. Enterprises where Significant Influence Exists

26. Nama Investments Limited

27. Madhucon Info Tech Limited

28. Madhucon Land Developers Limited

29. Madhucon Estates Limited

30. Nama Properties Limited

31. NNR Infra Investments Private Limited

32. Rajanagaram Gas Power Private Limited

33. Madhucon Stone Crushers Private Limited

34. Madhucon Mineral Resources Limited

35. Nama Energy Private Limited

36. Umarwada Gas Power projects Limited

37. Pallakurichi Power Private Limited

38. Vamu Advisors Private Limited

E. Joint Ventures

39. Madhucon Sino-Hydro JV

F. Key Management Personnel:

40. Mr. Nama Seethaiah Managing Director

41. Mr. K. Srinivasa Rao Wholetime Director


Mar 31, 2014

Notes for Long Term Borrowings From Banks and Financial Institutions

1.(i) Term Loan from Bank (ICICI): Secured by the first Pari-passu charge on the current assets and second Pari-passu charge on movable fixed assets of the company with irrevocable & unconditional personal guarantee of Sri. N. Seethaiah, Managing Director of the company. The loan is repayable in 20 equal quarterly instalments, first instalment will fall due after 3 months from first drawdown date and loan is executed on 17.03.2011. The rate of interest is 10.5% plus spread is 3.50% p.a. and interest is payable monthly at the end of each month. The period of maturity w.r.t. to Balance Sheet date is 8 Installments and payable in quarterly Instalments. Installment amount is Rs. 5 Crores.

(ii) External Commercial Borrrowing from Bank (SCB): Secured by the Exclusive charge on machinery procured out of the limits sanctioned by Standard Chartered Bonk and personal gaurantee of Sri Nam a seethiah Garu, Managing Director. The loan repayable in 5 years and rote of Interest is fixed up to 3 years 8.5% from 4 to 5th year 9.50%. The Period of maturity w.r.t. Balance Sheet date is 3 months and installment amount US $ 2,00,000

(iii) Term Loan from Bank (Axis): Secured by Subservient charge on the movable fixed assets and current assets of the company along with personal guarantee of Sri N. Seethaiah, Managing Director. The loan is repayable in (Quarterly Installments) 3 years out of which 15 Months are moratorium period and the rate of Interest is 3.00% above the Bank''s Base Rote payable and Quarterly Installment amount is Rs.7.5 Crores.Period of maturity w.r.t Balance sheet date is 3 Months(i.e..one Installment)

(iv) Vehicle Loan From Bank (Axis): Five loans Secured by the exclusive charge on the vehicles procured out of this funds and repayable in 35 equated monthly installments at the rate of interest 10.39% p.a on monthly reducing basis. Installment amount is Rs.98,288 per Month and period of maturity W.r.t balance sheet date is 8 Months.

2.(i) Term loan from financial institution (SREI) - Nine loans outstanding in the previous year were restructured and converted into three new loans of Rs. 83 Crores secured by Subservient charge on movable fixed assets of the company worth Rs. 108 Crores. The loans are executed on 03-02-2014. Loan is repayable in 44 installments, each installment amounting to Rs. 2,54,55,700 (Out of 48 months total tenure 4 months are Moratorium period) and interest is charged at the rate of 14.78% with monthly rests. In addition to the fixed asstes hypothecation, we have extended a collateral security of 7acres and 79 cents by madhucon projects limited and Sri Nama Seethiah and personal gaurantee of Sri Noma seethiah, Managing Director.

(ii) Term loan from Financial lnstution( Magma Fin Corp): Loan is secured against Plant and Machinery, loan commencement dote is 1.04.2012 and repayable in 35 equated monthly installments amounting to Rs.9,94,153. The rate of Interest is 12.05% to 10.60% p.a. and the last installment due date is 1st Feb 2015 Period of naturity w.r.t Balance sheet date is 11 Months

(iii) Term Loanfrom Financial institution (Bajaj Auto Finance): Secured by the Movable fixed asset of the Company and the loan executed on 31.07.2010. The loan is repayable in 35 Monthly Equated Instalments of each Rs.58.34 Lakhs the Effective Rate of Interest is 9.74% p.o.As on reporting dote no installments are due.

Note:-3.(i) Axis Bank Limited - CCA/c Secured by the Pari-passu charges on the current assets and unencumbered fixed assets of the Company. The loan is repayable on demand with interest at the rate of 13.25% p.a payable at monthly intervals

(ii): Bank of India - CCA/c Secured by pari passu charge on stock & Book Debts of the Company by way of hypothecation and pari-passu second charge on movable assets of the Company and loan was executed on 08.09.2011. The rate of interest is 13.2% p.a with monthly rests and loan is repayable on demand.

(iii) IDBI Bank Limited - CC A/c Secured by first paripassu charge on the entire Current Assets on pari-passu basis with other multiple Banking arrangement and collateral Security and second charge on the movable assets of the Company on pari- passu basis with other multiple Banking arrangement and repayable on demand limit up to Rs.75 Crores.

(iv)State Bank of India - CC A/c The Loan is Secured by ranking pari passu first charge on current assets & pari possu second charge on all movable fixed assets of the Company to the extent of fund based Cash credit limit Rs.50 Crores.The Cash credit is repaybale on demand and renewable every 12 months from the date of sanction. The rate interest is 16.75% p.a (5% above on the base rate of 11.75%).

(v) Oriental Bank of Commerce - CC A/c Secured by the first charge by way of hypothecation of the entire current assets both present and future of the company ranking pari pasu with other participating Banks. Second charge on all the unencumbered movable fixed assets of the company, both present and future,ranking pari passu with other participating Banks along with personal Unconditional and irrevocable guarantee of Sri. N. Seethaiah, Managing Dlrector.The rate of interest is 12.5% payable on monthly rests. Principal amount of each tranche is to be repaid as bullet payment on maturity dote or in installments os agreed upon, but within the validity period.

(vi) ING Vysya Bank Limited - CC A/c - Secured by firs t Pari-passu charge on Current Assets and second Pari-Passu charge on unencumbered Movable Fixed Assets of the Company.The loan is executed on 10.10.2011. The rate of Interest is at present 14.55% p.a. and loan is repayable on demand.

(vii) Yes Bank Limited - CC A/c - Secured by the Exclusive charge on the current and future book debts, receivables of Chopra-Hajipur EPC Contract and personal gaurantee N.N.Rao and Smt. Chinnma. The loan is sanctioned on 09-07-2013 and effective rate of interest is 14% p.a. and with tenor of 15 months (subject to renewal at the end of 12 months).

(viii) ICICI Bank Limited-CC A/cs: Three CC Accounts Secured by pari passu charge on Stock & Book Debts of the Company by way of hypothecation and pari-passu second charge on movable assets of the Company and Secured by unconditional and irrevocable personal gaurantee of Sri N Seethaiah. Loon was executed on 25.06.2013. The rate of interest is 14.75% p.a with monthly rests and is repayable on demand.

(ix) Indusind Bank - Discounting of invoices raised by MPL on its SPV Chhapra Hajipur Expressways Limited (CHEL) for EPC works at on interest rate of 11% P.a for a tenor of 45 days repayable on 12 April, 2014.

(x) IDBI Short Term Loan: Loan token from IDBI bank of an amount of Rs 6.00 crores for the purpose of working capital requirement. The loan commencement date is 180 day from the date of disbursement. The rate of interest is Bose rate plus 4.50% p.a.

4.Contingent Liabilities not provided for: (Rs. Lakhs) S.NO As at As at Particulars 31.03.2014 31.03.2013

1 Bank Guarantees/Letter of Credit issued by the banks on 57,976.33 79,826.76 behalf of the Company.

2 Corporate Guarantees issued by the Company on behalf of its 42,293.00 1,10,177.00 subsidiaries and others

3 Disputed Sales Tax (on appeal) 6,424.63 6,334.07

4 income Tax demand contested in 6,621.52 5601.84 appeal

5. Segmental Reporting:

The Company''s operations predominantly consist of construction/project activities. Hence there are no reportable segments under Accounting Standard 17.

6. Joint Ventures:

The Company has interest in the''foliowing Joint Ventures:

Foreign Joint Ventures:

(i) Madhucon Sino-Hydro JV

7. Micro & Small Enterprises

The Management has taken steps to identify the enterprises which have provided goods & services to the company and which qualify under the definition of Micro and Small Enterprises, as defined under Micro, Small and Medium Enterprises Development Act, 2006. Accordingly, the disclosure in respect of the amounts payable to such enterprises as on 31st March, 2014 has been made in the financial statements based on information received and such amount outstanding as on 31st. March, 2014 to Micro and Small Enterprises is NIL, which the auditors have relied upon. Further, in the view of the Management, the impact of interest, if any, that may be payable in accordance with the provisions of the Act is not expected to be material.

8. In accordance with Accounting Standard 11 (revised)the net exchange gain/{Loss)debited to profit & loss account is Rs. 119.78 Lakhs (previous year net exchange gain credited Rs. 6.19 lakhs) and foreign exchange difference (net) on capital account included in the cost of respective asset is Rs. Nil (previous year: Rs. Nil).

9. Operating Cycle:

The Company''s operating cycle has been assumed as 12 months as there are different types of life spans for different projects as well as activities.

10. Figures of previous year have been regrouped/rearranged/reclassified wherever necessary to conform to the current year presentation.


Mar 31, 2013

1.1 Contingent Liabilities not provided for:

(Rs.Lakhs) S. No As at As at Particulars 31.03.2013 31.03.2012

1 Bank Guarantees/Letter of Credit issued by the banks on behalf of the Company. 79,82676 1,10,198.00

2 Corporate Guarantees issued by the Company on . behalf of its subsidiaries and other 1,10,177.00 1,26,965.00

3 Disputed Sales Tax (on appeal) 6,334.07 974.03

4 Income Tax demand contested in appeal. 875.83 7,244.20

1.2 The long term unquoted investments in equity shares of subsidiary companies as given hereunder and included in Note No.2.11 are pledged with Banks and Financial Institutions which have extended loan facilitates to the respective investee companies.

1.3 The Income Tax assessments of the Company have been completed up to the assessment year 2011-12. The disputed demand outstanding up to the said assessment year is Rs.875.83 lakhs. Based on the decision of the appellate authority and the interpretation of the relevant provisions, the company has legally advised to go on further appeal and thereby the demand is likely to be deleted or substantially reduced and accordingly no provision has been made in the books.

1.4 Turnover [Civil Engineering Projects) includes machinery and equipment supplied to Simhapuri Energy Limited (Subsidiary Company) Rs.294.81 Crores as part of EPC contract.

1.5 Segmental Reporting:

The Company''s operations predominantly consist of constructs on/project activities. Hence there are no reportable segments under Accounting Standard-17.

1.6 Joint Ventures:

The Company has interest in the following Joint Ventures: (i) Madhucon ABCI JV (ii) Madhucon Sree Rama JV (iii) Madhucon Valay JV (iv) Madhucon CGGC JV

Foreign Joint Ventures:

(i) Madhucon Bina Puri JV (ii) Madhucon Sino-Hydro JV

1.7 Micro & Small Enterprises

The Management has taken steps to identify the enterprises which have provided goods & services to the company and which qualify under the definition of Micro and Small Enterprises, as defined under Micro, Small and Medium Enterprises Development Act, 2006. Accordingly, the disclosure in respect of the amounts payable to such enterprises as on 31st March, 2013 has been made in the financial statements based on information received and such amount outstanding as on 31st March, 2013 to Micro and Small Enterprises is NIL, which the auditors have relied upon. Further, in the view of the Management, the impact of interest, if any, that may be payable in accordance with the provisions of the Act is not expected to be material.

1.8 In accordance with Accounting Standard 11 (revised)the net exchange gain/(Loss)credited to profit & loss account is Rs.6.19 Lakhs (previous year net exchange gain credited Rs. 58.36 lakhs) and foreign exchange difference (net) on capital account included in the cost of respective asset is Rs. Nil (previous year: Rs. Nil).

1.9 Related Party Transactions:

(I) Following are the list of related parties

A. Subsidiary Company

1. Madhucon Infra Limited

2. Madurai - Tuticorin Expressways Limited

3. Madhucon Energy Limited.

4. Madhucon Mega Mall Private Limited

5. Nama Hotels Private Limited

6. Madhucon Heights Private Limited

7. Agastyamuni Hydro Power Private Limited

8. Rudraprayag Hydro Power Private Limited

9. Tilwara Hydro Power Private Limited

10. Madhucon Natural Resources Limited, Singapore

B. Step down Subsidiaries

11. TN (DK) Expressways Limited

12. Trichy - Thanjavur Expressways Limited

13. Madhucon Agra-Jaipur Expressways Limited

14. Chhapra Hajipur Expressways Limited

15. Barasat-Krishnagar Expressways Limited

16. Ranchi Expressways Limited

17. Simhapuri Energy Limited

18. PT Madhucon Indonesia

19. PT Madhcon Sriwijaya Power

20. Madhucon Toll Highways Limited

21. Vijayawada-Machilipatnam Expressways Limited

22. Rajauii Bakthiyarpur Expressways Limited

C. Associates

23. M.B.N. Anchored Earth Limited

24. Madhucon Properties Limited.

25. Ramnagar Power Private Limited

26. Madhucon Sugar & Power Industries Limited

D. Enterprises where Significant Influence Exists

27. Nama investments Limited

28. Madhucon Granites Limited

29. Madhucon Info Tech Limited

30. Madhucon Land Developers Limited

31. Madhucon Estates Limited

32. Nama Properties Limited

33. NNR Infra investments Private Limited

34. Rajanagaram Gas Power Private Limited

35. Madhucon Stone Crushers Private Limited

36. Madhucon Mineral Resources Limited

37. Nama Energy Private Limited

38. Umarwada Gas Power projects Limited

39. Paiiakurichi Power Private Limited

40. Vamu Advisors Private Limited

E. Joint Ventures

41. Madhucon Bina Puri JV

42. Madhucon Sino-Hydro JV

43. Madhucon ABCi JV

44. Madhucon Valay JV

45. Madhucon Sree Rama JV

46. Madhucon CGGV JV

F. Key Management Personnel and their relatives:

47. Mr. Nama Seethaiah Managing Director

48. Mr. S. Vaikuntanathan Wholetime Director (Up to 4-03-2013)

49. Mr. K. Srinivasa Rao Wholetime Director (From 15-11-2012)

1.10 Operating Cycle:

The Company''s operating cycle has been assumed as 12 months as there is different types of life spans for different projects as well as activities.

1.11 Figures of previous year have been regrouped/rearranged/reclassified Wherever necessary to conform to the current year presentation.

 
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