Mar 31, 2018
1 Corporate Information
Manjeera Constructions Limited is a company registered in India under the companies act,1956, having its registered office at 711, Manjeera Trinity Corporate, JNTU and Hitech City Road, KPHB Colony, Hyderabad - 520072 is in the business of property development, civil construction contracts, infrastructure projects development and Windmill Energy Production.
Fair value of the investment property
The fair value of the investment properties as at March 31,2018, March 31,2017 and April 1,2016 have been arrived at on the basis of a valuation carried out as on the respective dates. The fair value was derived using the market comparable approach based on recent market prices without any significant adjustments being made to the market observable data.
2.1. The credit period towards trade receivables generally ranges between 30 to 180 days. Generally, no interest is recovered for payments received beyond due date.
2.2 In determining the allowance for trade receivables the company has used practical expedients based on financial condition of the customer, ageing of the customer receivables and overdues, availability of collaterals and historical experience of collections from customers. The concentration of risk with respect to trade receivables is reasonably low as most of the customers settle within the due dates, though there may be normal delays in collections.
The Company''s past history in dues becoming bad or doubtful was very insignificant
2.3 Rights of the share holders
The Company has only one class of shares- Equity shares having a par value of ''10/-. Each holder of equity shares is entitled to one vote per share. All the equity shares rank pari passu in all respects including bu not limited to entitlement for dividend, bonus issueand rights issue.
The Company declares and pays dividens in a Indian Rupees. The dividend proposed by the Board of Directors, if any, is subject to the approval of the shareholders in the ensuing general meeting.
In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company in proportion of their shareholding.
3.1 Term loan amounting to Rs. 520.11 lakhs (March 31, 2017: Rs. 600 lakhs) is secured by exclusive hypothecation charge on construction materials and work in progress. Equitable mortgage of total land area of Ac. 5.01 Gunts with proposed construction of 23 villas with total build up area of 78335.71 sq. feet belonging to Sri G. Yoganand, Managing Director and Manjeera Estates Private Limited including land measuring 6998.37 sq. yards covering above villas out of total area of Ac. 5.01 Gts besides assignment of development right over the entire project. Present interest at 13.6% on monthly basis. Term loan repayble in eight quarterly equal installments starting from June 30, 2018. The loan is further personally guaranteed by Sri G. Yoganand, Managing Director.
3.2 Security for loan from LIC Housing Limited: Equitable Mortagage on land & Buildings of Total Manjeera Monarch Project and Unit number 304 A in Aditya Trade Centre (F&G Blocks) & Open Exhibition area in ground floor and unit number 4,5,6,7 & 8 belongs to Manjeera Estates Pvt Limited and G Yoganand in aditya Trade Centre(F&G Blocks).
3.3 Vehicles loan amounting to Rs. 20.88 Lakhs (March 31, 2017: Rs. 26.68 Lakhs) is secured by hypothecation of vehicles purchased.
4.1 A. Defined benefit plan
The Company provides for gratuity for employees as per the Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of 5 years are eligible for gratuity at the rate of 15 days basic salary for each year of service until the retirement age. As at March 31, 2018 and March 31, 2017 the plan assets were invested in insurer managed funds.
B. Defined contribution plan
The Company provides benefits in the nature of defined contribution plans viz, employee state insurance scheme, provident fund and superannuation fund for qualifying employees. Under these Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognised Rs. 8.56 Lakhs (March 31, 2017: Rs. 7.26 Lakhs) towards contribution for mentioned funds in the Statement of Profit and Loss. The contributions payable to these plans by the Company are at rates specified in the rules of the Schemes.
C. Sensitivity analysis Description of Risk Exposures
Valuations are performed on certain basic set of pre-determined assumptions which may vary over time. Thus, the Company is exposed to various risks in providing the above benefit which are as follows:
Interest Rate Risk: The plan exposes the Company to the risk of fall in interest rates. A fall in interest rates will result in an increase in the ultimate cost of providing the above benefit and will thus result in an increase in the value of liability (as shown in financial statements).
Liquidity Risk: This is the risk that the Company is not able to meet the short term benefit payouts. This may arise due to non availability of enough cash/cash equivalent to meet the liabilities or holding of illiquid assets not being sold in time.
Salary Escalation Risk: The present value of the above benefit plan is calculated with the assumption of salary increase rate of plan participants in future. Deviation in the rate of increase in salary in future for plan participants from the rate of increase in salary used to determine the present value of obligation will have a bearing on the plan''s liability.
Demographic Risk: The company has used certain mortality and attrition assumptions in valuation of the liability. The Company is exposed to the risk of actual experience turning out to be worse compared to the assumption.
Regulatory Risk: Gratuity benefit is paid in accordance with the requirements of the Payment of Gratuity Act, 1972 (as amended from time to time). There is a risk of change in regulations requiring higher gratuity payouts (for example, increase in the maximum liability on gratuity of '' 10 Lakhs).
Asset Liability Mismatching or Market Risk: The duration of the liability is longer compared to duration of assets exposing the company to market risks for volatilities/fall in interest rate.
Significant actuarial assumptions for the determination of the defined benefit obligation are discount rate, expected salary increase and mortality. The sensitivity analysis below have been determined based on reasonably possible changes of the assumptions occurring at the end of the reporting period, while holding all other assumptions constant.
5.1 Cash Credit is secured by hypothecation of current assets of construction contract business division (excluding assets of real estate division). Margin 25%. Rate of interest - Bench Mark 1 year MCLR of bank plus spread of 2.5% chargeable on monthly test)
5.2 Domestic purchase bill factoring is secured by collateral security with minimum asset cover of 2.5 times of the entire facility of Rs. 750.00 Lakhs by pledge of shares of promoters of Company and partly by equitable mortage of Commercial Property owned by Manjeera Estates Private Limited. Personal Gurantee of G. Yoganand, Managing Director and corporate guaratee of Gajjala Investment and Holding s Private limited and Manjeera Estates Private Limited.
5.3 Unsecured loans taken from related parties carries interest of 18% per annum compounded on quarterly basis and are repayable on demand.
5.4 Unsecured inter-corporate deposit amounting to Rs. 23.66 Lakhs (March 31, 2017: Rs. 9.25 Lakhs) taken from differenet Parties carries an average interest rate of 15% p.a (March 31, 2017: average interest rate of 17%)
6.1 Trade payable other than acceptances do not include any dues to Micro and Small Enterprises, under the Micro, Small and Medium Enterprises Development Act, 2006.
Due to Micro and Small Enterprises have been determined to the extent such parties have been identified on the basis of information collected by the Management. This has been relied upon by the Auditors.
7.1 Defined contribution plans
The Company made Provident Fund contributions to defined contribution plans for qualifying employees. Under the Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognised Rs. 8.56 Lakhs (March 31, 2017: Rs. 7.25 Lakhs) for Provident Fund contributions in the Statement of Profit and Loss. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.
8 Contingent Liabilities and Commitments
(i) Contingent Liability
a. Claims against the Company not acknowledged as debts:
Claims against the Company not acknowledged as debts include demands raised by Income Tax authorities aggregating to Rs. 0.00 (Previous year Rs. 464.30 lakhs).
Other Contingent Liabilities
Guarantees issued by bankers on behalf of the company towards performance obligations '' 158.24 Lakhs (Previous year Rs. 613.93 lakhs).
Corporate Guarantee of Rs. 30,000 lakhs (Previous year Rs. 30,000 lakhs) issued on behalf of subsidiary company Manjeera Retail Holdings Private Limited.
Notes to financial instruments
The management assessed that the fair value of cash and cash equivalents, trade receivables, loans, trade payables and other financial liabilities approximate the carrying amount largely due to short-term maturity of these instruments. The management assessed that the fair value of borrowings approximate the carrying amount largely due to such borrowings carry floating interest rates or rates are negotiable.
The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.
9 Financial risk management
Financial risk factors
The Company''s activities expose it to market risk, liquidity risk and credit risk. The Company''s Board of Directors has overall responsibility for the establishment and oversight of the Company''s risk management framework. This note explains the sources of risk which the entity is exposed to and how the entity manages the risk and the related impact in the financial statements.
a. Credit risk
Credit risk is the risk that a counterparty fails to discharge its obligation to the Company. The Company''s exposure to credit risk is influenced mainly by cash and cash equivalents, trade receivables and financial assets measured at amortized cost. The Company continuously monitors defaults of customers and other counterparties and incorporates this information into its credit risk controls. Credit risk related to cash and cash equivalents and bank deposits is managed by accepting highly rated banks and diversifying bank deposits.
Credit risk management
The finance function of the Company assesses and manages credit risk based on internal credit rating system. Internal credit rating is performed for each class of financial instruments with different characteristics.
Based on business environment in which the Company operates, a default on a financial asset is considered when the counterparty fails to make payments within the agreed time period as per contract. Loss rates reflecting defaults are based on actual credit loss experience and considering differences between current and historical economic conditions.
Assets are written off when there is no reasonable expectation of recovery, such as a debtor declaring bankruptcy or a litigation decided against the Company. The Company continues to engage with parties whose balances are written off and attempts to enforce repayment. Recoveries made are recognized in statement of profit and loss.
Expected credit loss for trade receivables under simplified approach Real estate business
The Company''s trade receivables does not have any expected credit loss as registry of properties sold is generally carried out once the Company receives the entire payment. During the periods presented, the Company made no write-offs of trade receivables and no recoveries from receivables previously written off. But a general provision for Expected credit loss @ 0.4% has been provided
b. Liquidity risk
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due. Due to the nature of the business, the Company maintains flexibility in funding by maintaining availability under committed facilities.
Management monitors rolling forecasts of the Company''s liquidity position and cash and cash equivalents on the basis of expected cash flows. The Company takes into account the liquidity of the market in which the entity operates.
c. Interest rate risk
The Company''s fixed rate borrowings are carried at amortized cost. They are therefore not subject to interest rate risk as defined in Ind AS 107, ''Financial Instruments - Disclosures'', since neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rates.
10 Capital Management
The Company''s objectives when managing capital are to:
Safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders, and maintain an optimal capital structure to reduce the cost of capital.
In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.
The Company monitors its capital using gearing ratio, which is net debt divided by total equity. Net debt includes long term borrowings, short term borrowings, current maturities of long term borrowings less cash and cash equivalents and other bank balances.
11 First time adoption of Ind AS
These are the Company''s first financial statements prepared in accordance with Ind AS.
The accounting policies set out in note 1 have been applied in preparing the financial statements for the year ended 31 March 2018, the comparative information presented in these financial statements for the year ended 31 March 2017 and in the preparation of an opening Ind AS balance sheet at 1 April 2016 (the Company''s date of transition).
An explanation of how the transition from previous GAAP to Ind AS has affected the Company''s financial position, financial performance and cash flows is set out in the following tables and notes.
A Ind AS optional exemptions
Ind-AS 101, ''First-time Adoption of Indian Accounting Standards'', allows first-time adopters certain exemptions from the retrospective application of certain requirements under Ind-AS. The Company has accordingly applied the following exemptions.
1 Deemed cost for Property, Plant and Equipment, Intangible Assets and Investment Property
Ind AS 101 ''First-time Adoption of Indian Accounting Standards'' permits a first-time adopter to elect to measure an item of property plant and equipment at the date of transition to IndAS at it''s fair value or continue with the carrying value for all of its property, plant and equipment as recognized in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition. This exemption can also be used for intangible assets covered by Ind AS 38, ''Intangible Assets'' and for investment property covered by Ind AS 40, ''Investment Properties''. Accordingly, the Company has elected to measure all of its property, plant and equipment, and intangible assets at their previous GAAP carrying value and to measure Investment Property at fair value on the date of transition to IndAS.
B Ind AS mandatory exceptions
1 Estimates
An entity''s estimates in accordance with Ind ASs at the date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error.
2 Classification and measurement of financial assets and liabilities
Classification of financial asset is required to be made on the basis of the facts and circumstances that exist at the date of transition to Ind AS. Further, it is impractible for the Company to apply retrospectively the effective interest method in Ind AS 109, the fair value of the financial asset or the financial liability at the date of transition to Ind AS shall be the new gross carrying amount of that financial asset or the new amortised cost of that financial liability at the date of transition to Ind AS.
3 De-recognition of financial assets and liabilities
Ind AS 101, ''First-time Adoption of Indian Accounting Standards'' requires a first-time adopter to apply the de-recognition provisions of Ind AS 109,''Financial Instruments'' prospectively for transactions occurring on or after the date of transition to Ind AS. However, Ind AS 101, ''First-time Adoption of Indian Accounting Standards'' allows a first-time adopter to apply the derecognition requirements in Ind AS 109,''Financial Instruments'' retrospectively from a date of the entity''s choosing, provided that the information needed to apply Ind AS 109,''Financial Instruments'' to financial assets and financial liabilities derecognized as a result of past transactions was obtained at the time of initially accounting for those transactions. The Company has elected to apply the de-recognition provisions of Ind AS 109,''Financial Instruments'' prospectively from the date of transition to Ind AS.
C Reconciliations between previous GAAP and Ind AS
Ind AS 101, ''First-time Adoption of Indian Accounting Standards'' requires an entity to reconcile equity, total comprehensive income and cash flows for prior years. The following tables represent the reconciliations from previous GAAP to Ind AS.
Notes to first time adoption:
i To comply with the Companies (Accounting Standard) Rules, 2006, certain account balances have been regrouped as per the format prescribed under Division II of Schedule III to the Companies Act, 2013.
ii Financial instruments at amortised cost
(a) Financial liabilities at amortised cost
Under previous GAAP financial liabilities were initially recognized at transaction price. Subsequently, any finance costs was recognized based on contractual terms. Under Ind AS, such financial instruments are initially recognized at fair value and subsequently carried at amortised cost determined using the effective interest rate. Any difference between transaction price and fair value affects profit and loss unless it quantifies for recognition as some other type of liability.
(b) Financial assets at amortised cost
Under previous GAAP financial assets were initially recognized at transaction price. Subsequently, any finance income was recognized based on contractual terms. Under Ind AS, such financial instruments are initially recognized at fair value and subsequently carried at amortised cost determined using the effective interest rate. Any difference between transaction price and fair value affects profit and loss unless it qualifies for recognition as some other type of asset.
iii Defined benefit liabilities:
Both under previous GAAP and Ind AS, the company recognized costs related to its post-employment defined benefit plan on an actuarial basis. Under previous GAAP the entire cost, including actuarial gains and losses, are charged to the statement of profit or loss. Under Ind AS, re-measurements comprising of actuarial gains and losses are recognized immediately in the balance sheet with a corresponding debit or credit to retained earnings through OCI. Thus, the employee benefit cost is reduced by such amount with a corresponding adjustment on defined benefit plans has been recognized in the OCI.
iv Other comprehensive income
Under Ind AS, all items of income and expense recognized in a period should be included in profit or loss for the period, unless a standard requires or permits otherwise. Items of income and expense that are not recognized in profit or loss but are shown in the statement of profit and loss as âother comprehensive income'' includes re-measurements of defined benefit plans, foreign exchange differences arising on translation of foreign operations, effective portion of gains and losses on cash flow hedging instruments and fair value gains or (losses) on FVOCI equity instruments. The concept of other comprehensive income did not exist under previous GAAP There is no impact on the total equity or profit as a result of this adjustment.
v Retained earnings
Retained earnings as at 1 April 2016 and 31 March 2017 has been adjusted consequent to the above Ind AS transition adjustments.
vi Investment property
Under the previous GAAP investment properties were presented as part of property, plant and equipment. Under Ind AS, investment properties are required to be seperately presented on the face of the balance sheet. The fair value as on the date of transition is considered as the deemed cost and the same is effected to retained earnings.
Mar 31, 2016
1. Capital commitment and contingent liabilities
2. Contingent liabilities
3. Claims against the Company not acknowledged as debts include demands raised by Income Tax authorities aggregating to Rs.4,64,30,513 (Previous year Rs.4,53,50,373). No provision has been made in the accounts for these demands as the Company expects a favorable decision in appeal.
4. Bank Guarantees on account of contractors not provided for Rs.30,82,90,454 (previous year Rs.29,09,81,600).
5. Commitments: NIL
6. Micro, Small and Medium enterprises
The identification of Micro, Small and Medium Enterprise suppliers as defined under the provisions of "The Micro, Small and Medium Enterprises Development Act, 2006" is based on Management''s knowledge of their status.
The Company has not received any memorandum (as required to be filed by the suppliers with the notified authority under the Micro, Small and Medium Enterprises Development Act, 2006) claiming their status as Micro, Small or Medium Enterprises. Consequently the amount paid / payable to these parties during the year and previous year is Nil.
7. Employee benefits
Defined Contribution plans
The Company makes Provident Fund and Employee State Insurance scheme contributions to the relevant authorities, which are defined contribution plans for qualifying employees. Under the Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company has recognized Rs.10,28,200 (Previous year Rs.11,23,694 for Provident Fund contributions and Rs.1,20,474 (Previous year Rs.1,74,701) for Employee State Insurance in the Statement of Profit and Loss.
The following table set out the unfunded status of the retirement benefits plans and the amount recognized in the financial statements:
Notes:
8. The discount rate is based on the prevailing market yield of Indian Government Securities as at the balance sheet date for the estimated term of obligations.
9. The estimates of future salary increases considered takes into account the inflation, seniority, promotion and other relevant factors.
10. Segment reporting
The Company''s operations fall within a single business segment "Development and sale of residential" and single geographical segment and therefore segment information as required under AS-17 is not applicable.
11. Related Party Disclosures
As per Accounting Standard 18, the disclosures of transactions with the related parties are:
12. List of related parties and nature of the relationship:
13. Previous year''s figures have been re-grouped/re-classified wherever necessary to correspond with the / disclosure.
Mar 31, 2015
1. Corporate Information:
Manjeera Constructions Limited is mainly engaged in property
development, civil construction contracts and infrastructure projects
development.
2. Additional Notes to the Financial Statements
a. Depreciation:
Depreciation for the year is provided as per Schedule II of the
Companies Act, 2013 (the Act). Accordingly Rs.1,027,115 being the
remaining carrying amount of the assets whose remaining life in NIL are
recognized in the opening balance of retained earnings and Rs.3,694,358
is charged to revenue as depreciation for the year. Hence, depreciation
for the year is not directly comparable with previous year.
b. Capital commitment and contingent liabilities Contingent
liabilities
(i) Claims against the Company not acknowledged as debts include
demands raised by Commercial Taxes Department towards VAT for the years
2008-09, 2009-10 and 2010-11 aggregating to Rs.127,493,962 (Previous
year Rs.127,493,962). No provision has been made in the accounts for
these demands as the Company expects a favorable decision in High
Court.
(ii) Bank Guarantees on account of contractors not provided for
Rs.210,981,600 (previous year Rs.165,795,000).
c. Micro, Small and Medium enterprises
The identification of Micro, Small and Medium Enterprises suppliers as
defined under the provisions of "The Micro, Small and Medium
Enterprises Development Act, 2006" is based on Management's knowledge
of their status.
The Company has not received any memorandum (as required to be filed by
the suppliers with the notified authority under the Micro, Small and
Medium Enterprises Development Act, 2006) claiming their status as
Micro, Small or Medium Enterprises. Consequently the amount paid /
payable to these parties during the year and the previous year is Nil.
D. Employee benefits:
Defined Benefit Plan
The employees' gratuity is a defined benefit plan. The present value of
obligation is determined based on actuarial valuation using the
Projected Unit Credit Method, which recognises each period of service
as giving rise to additional unit of employee benefit entitlement and
measures each unit separately to build up the final obligation. The
obligation for Compensated Absences is recognised in the same manner as
gratuity.
Defined Contribution plan
The Company makes Provident Fund and Employee State Insurance
contributions which are defined contribution plans for qualifying
employees. The Company has recognised Rs.1,123,694 (Previous year
Rs.1,452,692 for Provident Fund contributions and Rs.1 74,701 (Previous
year Rs.214,721) for Employee State Insurance in the Statement of
Profit and Loss.
E. Related party Disclosures
i) Related parties and their relationships
Name of the entity Nature of relationship
1 Manjeera Retail Holdings
Private Limited Subsidiary
2 MTM Estate Properities
Private Limited. Subsidiary
3 GM Infra Ventures Private Limited Associate
4 G.Yoganand - Managing Director Key Management Person
5 K.Krishna Murty - Director Key Management Person
6 DLS Sreshti - Independent Director Key Management Person
7 G.Vivekanand - Director Key Management Person
(upto14.08.2014)
8 G.PADMAJA Key Management Person
(w.e.f 14.08.2014)
9 Manjeera Estates Private Limited Entity under significant
influence of KMP
10 Manjeera Hotels & Resorts Private Entity under significant
influence of KMP
11 Gajjala Investments & Holdings Private Entity under significant
Limited influence of KMP
12 Aashraya Hotels And Estates Private Entity under significant
Limited influence of KMP
13 MTM Estates And Properties Private Entity under significant
Limited influence of KMP
14 Manjeera Projects Entity under significant
influence of KMP
Note: Related parties have been identified by the management of the
Company.
F. Disclosures as per clause 32 of the Listing agreement with stock
exchange
Loans and advances in the nature of loan given Manjeera Retail Holdings
Private Limited - Subsidiary company GM Infra ventures private Limited
- Associate Manjeera Hotels & Resorts Private Limited - Associates
G. Segment reporting
The Company's operations fall within a single business segment
"Production of program and broadcasting satellite television" and
single geographical segment and therefore segment information as
required under AS - 17 is not applicable.
H. Previous year comparatives
Previous year's figures have been re-grouped/re-classified wherever
necessary to correspond with the current year's classification/
disclosure.
Mar 31, 2014
1. Corporate information
Manjeera Constructions Limited is mainly engaged in property
development, civil construction contracts and infrastructure projects
development.
2. Contingent liabilities
(Figures are in Rs. Lac unless
otherwise stated)
As at As at
31-03-2014 31-03-2013
i. Direct and Indirect taxes claims
disputed by the company to issues
of applicability 1274.94 18.05
ii. Bank Guarantees 1657.95 493.82
3. Micro, small and medium enterprises
The identification of Micro, Small and Medium Enterprise suppliers as
defined under the provisions of "The Micro, Small and Medium
Enterprises Development Act, 2006" is based on Management''s knowledge
of their status.
The Company has not received any memorandum (as required to be filed by
the suppliers with the notified authority under the Micro, Small and
Medium Enterprises Development Act, 2006) claiming their status as
Micro, Small or Medium Enterprises. Consequently the amount paid /
payable to these parties during the year and previous year is nil.
4. Employee benefit
a) Defined benefit plan:
Gratuity: Every employee is entitled to a benefit equivalent to 15 days
salary last drawn for each completed year of service in line with
payment of Gratuity Act, 1972. The same is payable at the time of
separation from the Company or retirement, whichever is earlier.
5. Segment reporting
The Company''s operations fall within a single business segment
Construction and related activities and single geographical segment and
therefore segment information as required under AS -17 is not
applicable
6. Related party disclosures
Related parties have been identified by the management i) Related
parties and description of relationship
A. Enterprises where control exists
Subsidiary company: Manjeera Retail Holdings Private Limited and MTM
Estate and Properties Private Limited
B. Other related parties with whom the Company had transactions
Enterprises over which shareholders, key management personnel and their
relatives can exercise control or significant influence
i) Manjeera Estates Private Limited
ii) Manjeera Hotels & Resorts Private limited
iii) Gajjala Investments & Holdings Private Limited
iv) Aashraya Hotels And Estates Private Limited
v) MTM Estates And Properties Private Limited
vi) GM Infra Ventures Private Limited
vii) Manjeera Projects
C. Key Management Personnel(KMP)
i) G. Yoganand - Managing Director
ii) G. Vivekanand - Whole time Director
iii) K. Krishna Murty - Independent Director
iv) DLS Sreshti - Independent Director
7. Disclosure as per Clause 32 of the Listing Agreement with the stock
exchange, Loans and advances in the nature of loan given Manjeera
Retail Holdings Private Limited - Subsidiary company GM Infra ventures
private Limited - Associate Manjeera Hotels & Resorts Private Limited -
Associates
8. Previous Year Comparatives
Previous year''s figures have been regrouped / reclassified wherever
necessary to correspond with the current year''s classification /
disclosure.
Mar 31, 2013
Corporate information
Manjeera Constructions Limited is mainly engaged in property
development, civil construction contracts and infrastructure projects
development.
1. Contingent liabilities
(Figures are in Rs. Lacs unless otherwise stated)
As at As at
31 March 2013 31 March 2012
i. Direct and Indirect taxes claims
disputed by the 18.05 7.71
Company to issues of applicability
ii. Bank Guarantees 493.82 874.33
2. Micro, small and medium enterprises
The identification of Micro, Small and Medium Enterprise suppliers as
defined under the provisions of ''The Micro, Small and Medium
Enterprises Development Act, 2006'' is based on Management''s knowledge
of their status.
The Company has not received any memorandum (as required to be filed by
the suppliers with the notified authority under the Micro, Small and
Medium Enterprises Development Act, 2006) claiming their status as
Micro, Small or Medium Enterprises. Consequently the amount paid /
payable to these parties during the year and previous year is nil.
3. Employee benefit
Every employee of the Company who has completed five years or more of
service is entitled for gratuity benefit on retirement, death or
termination of employment, in accordance with the Payment of Gratuity
Act,1972. The Gratuity Scheme is not funded and appropriate liability
as required under AS 15 (Revised 2005) is provided in the Balance
Sheet.
4. Segment reporting
The Company''s operations fall within a single business segment
Construction and related activities and single geographical segment and
therefore segment information as required under AS Â 17 is not
applicable
5. Related party disclosures
Related parties have been identified by the management i) Related
parties and description of relationship
A. Enterprises where control exists Subsidiary Company. Manjeera
Retail holdings Private Limited
B. Other related parties with whom the Company had transactions
Enterprises over which shareholders, key management personnel and their
relatives can exercise control or significant influence
i) Manjeera Estates Private Limited
ii) Manjeera hotels & Resorts Private limited
iii) Gajjala Investments & holdings Private Limited
iv) Aashraya hotels And Estates Private Limited
v) MTM Estates And Properties Private Limited
vi) GM Infra Ventures Private Limited
vii) Manjeera Projects
C. Key Management Personnel (KMP)
i) G Yoganand  Managing Director ii) G Vivekanand  Whole time
Director iii) K Krishna Murty  Independent Director iv) DLS Sreshti Â
Independent Director
6. Disclosure as per Clause 32 of the Listing Agreement with the stock
exchange
Loans and advances in the nature of loan given Manjeera Retail holdings
Private Limited  Subsidiary Company GM Infra ventures private Limited
 Associate Manjeera hotels & Resorts Private Limited  Associates
7. Previous Year Comparatives
Previous year''s figures have been regrouped / reclassified wherever
necessary to correspond with the current year''s classification /
disclosure.
Mar 31, 2012
A) The rights attached to equity shares and restrictions on the
distribution of dividends :
The Company has only one class of shares referred to as equity shares
having a par value of Rs.10. Each holder of equity shares is entitled
to one vote per share. The dividend proposed by the Board of Directors
is subject to the approval of the shareholders in the Annual General
Meeting
1. Corporate information
Manjeera Constructions Limited along with its subsidiary, Manjeera
Retail Holding Private limited is mainly engaged in property
development, civil construction contracts and infrastructure projects
development.
As at As at
31 March, 2012 31 March, 2011
2.1 Contingent liabilities (to the
extent not provided for)
Claims against the Company not
acknowledged as debt 9.45 9.45
Guarantees 874.33 527.40
883.78 536.85
2.2 As of 31st March, 2012 the Company had no outstanding dues to
Micro, Small and Medium enterprises under the Micro, Small and Medium
Enterprises Development Act, 2006 as per the records available. Further
the Company has not paid any interest to Micro, Small and Medium
Enterprises.
b) Discount rate 08.00 % p.a. is used and chosen by reference to market
yields on government bonds as at the same date.
c) Expected rate of return : Nil as the Company has not created any
such fund.
f) Project Unit Credit (PUC) acturial method used to assess Plan's
liabilities.
In respect of members who have not completed five years of service are
not eligible for gratuity, the liability is assumed to accumulate on
straight line basis over an everage period of three years
2.3 As the Company's operations predominantly consists of single
segment viz., construction and related activities, the disclosure
requirements of Accounting Standard (AS) 17 "Segement Reporting" issued
by the Institute of Charterd Accountants of India is not applicable
2.4 Amounts in the Financial Statements are rounded off to the
nearest Lac Rupees in decimals unless otherwise stated.
2.5 The Revised Schedule VI has become effective from 1st April, 2011
for the preparation of Financial Statements. This has significantly
impacted the disclosure and presentation made in the Financial
Statements. Previous year's figures have been regrouped / reclassified
wherever necessary to correspond with the current year's classification
/ disclosure.
Mar 31, 2011
1. Contingent liabilities not provided for:
a) Guarantees issued by banks Rs 527.40 Lacs (Previous year Rs 527.40
Lacs)
b) APGST payable Rs 9,44,700 for the financial year 2004-05 pending
appeal with Sales Tax Appellate Tribunal.
2. The Company is formed for real estate development and such
operations are not capable of being expressed in any generic unit.
Hence it is not possible to give the quantitative details under
paragraph 3,4C and 4D of Part II of Schedule VI of the Companies Act,
1956.
3. In terms of the disclosures required to be made under the
Accounting Standard (AS) 7 (revised 2002) issued by the Institute of
Chartered Accountants of India for 'Construction Contracts', the
amounts considered in the financial statements up to the balance sheet
date are as follows.
31.03.2011 31.03.2010
(Rs) (Rs)
Contract revenue recognized
during the year 45,59,32,914 31,26,45,848
Contract costs incurred and
recognized profits 36,12,29,185 27,32,73,313
Advances received, net of
recoveries from progressive bills 2,48,28,600 4,00,00,000
Gross amount due from customers
from contract works 5,94,50,583 3,91,03,081
Gross amounts due to customers
for contract work Nil Nil
4. i) Provision for taxation made under the liability method after
availing exemptions and Deductions at the rates applicable under the
Income Tax Act, 1961 includes Rs 4,58,77,670 for the current period.
ii) Income tax Assessments have been completed upto the Assessment year
2008-09.
iii) profit before tax includes Rs 1,52,86,033 deductible under section
80-IB of Income Tax Act,1961 from the Gross total income of the Company
for the year under consideration and relates to Manjeera Heights Phase
II project.
5. As of 31st March, 2011, the Company had no outstanding dues to
Micro and Small enterprises under the Micro Small and Medium
Enterprises Development Act, 2006 as per the records available.
Further the Company has not paid any interest to Micro,Small and Medium
enterprises.
6. Employee benefits
The following set out the status of the Gratuity plan as required under
AS15(revised)
Amount recognized in Balance Sheet
Present value of obligation Rs 13,09,000
Provisions Rs 13,09,000
Expenses recognized in profit and loss account included in salaries Rs
13,09,000
Discount rate 8% p.a
Salary increase 5% p.a
7. Managerial remuneration under section 198 of the Companies Act,
1956: Managing Director - Salary Rs 54,00,000 (previous year Rs
54,00,000) and other directors Rs 7,40,000 (previous year Rs 65,000)
8. Particulars of loans and advances in the nature of loans as
required under clause 32 of the listing agreement. Nil (Previous Year:
Nil)
9. Related party disclosures as required by Accounting Standard 18 of
the Institute of Chartered Accountants of India:
A) Related parties and relationship:
i) Key management personnel G Yoganand, Managing Director G Shiva
Leelanand, Director K Krishna Murthy, Director D L S Sreshti, Director
G Vivekanand, Whole-time Director
ii) Enterprises in which key Management personnel have signifcant
infuence: Manjeera Hotels & Resorts Limited Manjeera Estates Private
Limited Manjeera Projects GM Infra Ventures Private Limited Gajjala
Investments and Holdings Private Limited
iii) Subsidiary Company: Manjeera Retail Holdings Private Limited
iv) Associates:
Ashraya Hotels & Estates Private Limited
v) Joint venture: Bharathi Infraprojects Private Limited
Related parties relationship as stated above are identifed by the
Company as required under Accounting Standard and relied by the
Auditors.
8. As per Accounting Standard 22 on "Accounting for Taxes on income"
issued by the Institute of Chartered Accountants of India, the Company
has accounted Deferred tax liability of Rs 96,91,153 as on 31.03.2011 on
accounting of timing difference of depreciation. For the period under
consideration Rs 14,59,033 has been written back on account of such
depreciation in profit and Loss account.
9. As the Company's operations predominantly consists of single
segment viz., construction and related activities, the disclosure
requirements of Accounting Standard 17 "Segment Reporting" issued by
the Institute of Chartered Accountants of India is not applicable.
10. Figures have been rounded off to the nearest rupee.
11. Figures of the previous year have been regrouped / rearranged
wherever necessary to make them comparable with that of current year
presentation.
12. Schedules one to nineteen form part of accounts.
Notes
1. The cash fows from operating activities has been prepared under
Indirect method as per AS-3 issued by the Institute of Chartered
Accountants of India.
2. Cash and cash equivalents represent cash and bank balances(net).
3. Figures under brackets represent cash outflows.
Additional information pursuant to Part IV of Schedule VI to the
Companies Act, 1956.
I. Registration Details:
Registration No : 72280 F 1986-87
State Code : 01
Balance Sheet Date : 31.03.2011
II. Capital raised during the year: (Amount in Rs Thousands)
Public Issue NIL
Bonus Issue NIL
Right Issue NIL
Private Placement NIL
III. Position of Mobilization and deployment of funds: (Amount in Rs
Thousands)
Total Liabilities
Source of Funds:
1. Paid-up Capital 125084
2. Reserves & Surplus 487384
3. Deferred tax liability 9692
4. Secured Loans 353346
5. Unsecured Loans 47458
TOTAL 1022964
Total Assets
Application of Funds:
1 Net Fixed Assets 61271
2 Investments 523800
3. Net Current Assets 437300
4. Misc. Expenditure 593
TOTAL 1022964
IV Performance of Company (Amount in Rs Thousands)
Turnover 835801
Total Expenditure 674505
profit before tax 142923
profit after Tax 100179
Earnings per share (Rs) 8.01
V. Generic names of the Three Principal products of the Company
(Code: 72200)
1. Sale of Flats / Plots
2. Sale of Space
3. Contract receipts
Mar 31, 2010
1. Contingent liabilities not provided for:
a) Bank Guarantees Rs.527.40 Lac (Previous year Rs.527.40 Lac)
b) APGST payable (I) Rs.3,45,181 for the financial year 2000-01 and
(ii) Rs.22,13,846 for the financial year 2004-05 pending appeal with
Appellate Dy.Commissioner (CT), Hyderabad.
2. Particulars under paragraph 3,4C and 4D of Part II of Schedule VI
of the Companies Act, 1956, to the extent applicable:
3. i) Provision for taxation made under the liability method after
availing exemptions and eductions at the rates applicable under the
Income Tax Act, 1961 includes Rs.2,13,00,000 for the current period.
ii) Income tax Assessments have been completed upto the Assessment year
2007-08.
iii) Profit before tax includes Rs.9,69,95,033 deductible under section
80-IB of Income Tax Act,1961 from the Gross total income of the Company
for the year under consideration relates Manjeera Heights Phase II
project.
4. As of 31st March, 2010, the Company had no outstanding dues to
small and medium Enterprises as per the records available.
5. Managerial remuneration under section 198 of the Companies Act,
1956: Managing Director - Salary Rs.54,00,000 and other directors
Rs.65,000 (previous year Rs.42,45,000)
6. Particulars of loans and advances in the nature of loans as
required under clause 32 of the listing agreement.: Nil (Previous Year:
Nil)
7. Related party disclosures as required by Accounting Standard 18 of
the Institute of Chartered Accountants of India:
A) Related parties and relationship:
I) Key management personnel
G Yoganand, Managing Director
G Shivaleelanand, Director
K Krishna Murthy, Director
D L S Sreshti, Director
ii) Enterprises in which key Management personnel have significant
influence:
Manjeera Hotels & Resorts Limited
Manjeera Estates Private Limited
Manjeera Projects
GM Infra Ventures Private Limited
iii) Subsidiary Company: Manjeera Retail Holdings Private Limited
iv) Associates:
Ashraya Hotels & Estates Private Limited
Ambica Chennakesava Projects Limited
v) Joint venture: Bharathi Infraprojects Private Limited
8. As per Accounting Standard 22 on "Accounting for Taxes on income"
issued by the Institute of Chartered Accountants of India, the Company
has accounted Deferred tax liability of Rs.1,11,50,186 as on 31.03.2010
on accounting of timing difference of depreciation. For the period
under consideration Rs.15,22,044 has been added on account of such
depreciation in Profit and Loss account.
9. As the Companys operations predominantly consists of single
segment viz., construction and related activities, the disclosure
requirements of Accounting Standard 17 "Segment Reporting" issued by
the Institute of Chartered Accountants of India is not applicable.
10. Figures have been rounded off to the nearest rupee.
11 Figures of the previous year have been regrouped / rearranged
wherever necessary to make them comparable with that of current year
presentation.
12 Schedules one to nineteen form part of accounts.