Mar 31, 2018
1. Company Overview:
Madhucon Projects Limited (MPL) or âthe Companyâ is an integrated construction, Infrastructure development and management Company. The Corporate Office of the Company is located at ''Madhucon House'' Road No.36, Jubilee Hills, Hyderabad, India.
The Company is engaged in the business of development and execution of Engineering, Procurement and Construction (EPC) and Turnkey Projects in multiple sectors such as Transportation, Irrigation, Water Resource Infrastructures, Railways, development of smart cities and properties in India. Completing the projects with high quality workmanship and commitment to excellence made the Company a leader in the industry. The Company is best in innovation, creativity and technological mastery, delivering top-quality work, ahead of schedule, in all sectors. A majority of the development projects of the Company are based on Public-Private Partnerships (PPP) and operated by separate Special Purpose Vehicles (SPV).
(i) The carrying value of investments held includes unsecured loans and advances given by the company to its subsidiaries. Certain subsidiaries have been incurring losses, net worth was fully or substantially eroded. Taking into account the managementâs internal assessment and initiatives implemented to improve the profitability in the medium to long run, the management of the company is of the view that carrying value of the investments and loans and advances are realizable at the value stated in the books.
(ii) Madhucon Mega Mall Private Limited (MMMPL) is a subsidiary of the company incorporated for developing shopping mall cum multiplex on leased land allotted by Andhra Pradesh Housing Board (now known as Telangana Housing Board) (âthe Boardâ) at Kukatpally in Hyderabad. The Board issued letter for revoking the power of attorney and resumption of land. The Company got a status quo order from court and the case is pending in the court. Taking in to account the recent developments on the visit and representation made by cabinet subcommittee of Telangana Government to their higher authorities, management internal assessment and legal opinion obtained, the management of the Company is awaiting the final approval from the Government for going ahead with the said project and financials are prepared on going concern basis.
iii) The long term unquoted investments in equity shares of subsidiary companies as given here under are pledged with Banks and Financial Institutions which have extended loan facilitates to the respective investee companies.
The outstanding loans and advances which were granted to Nama Investments Limited and NNR Infra Investments Private Limited in which the companyâs directors have interest are realizable at the carrying values in the books of accounts though both these companies have been incurring losses and accumulated losses exceeded the net worth of these companies. The closing balance as at March 31, 2018 with respect to Nama Investments Limited and NNR Investments Limited are Rs. 4,189.76 Lakhs and Rs. 511.98 Lakhs respectively.
b) Terms/ Rights attached to Shares:
The Company has only one class of paid-up equity shares having par value of Rs. 1 per share. Each shareholder of equity share is entitled to one vote per share. The Company declares and pays dividend in Indian Rupees only. The Dividend proposed by the Board of Directors is subject to approval of the shareholders in the Annual 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, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.
d) Bonus Shares/ Buy back shares for consideration other than cash issued during the past five years:
(1) Aggregate number and class of shares allotted as fully paid up pursuant to contracts without payment being received in Cash - Nil
(2) Aggregate number and class of shares allotted as fully paid up by way of Bonus shares - Nil
(3) Aggregate number and class of Shares bought back - Nil
Notes for Long Term Borrowings From Banks and Financial Institutions Term Loans from Financial Institutions:
(I) SREI Equipment Finance Limited: Secured by hypothecation of various equipments financed through the loan arrangements.
(ii) Mahindra & Mahindra Financial Services Limited : Secured by hypothecation of various movable assets financed through the loan arrangements.
Cash Credit/Overdraft facilities availed from banks are secured by:
a) First pari-passu hypothecation charge to all working capital banks in Multiple Banking Arrangement on all existing and future current assets
b) Second pari-passu on all the fixed assets of the Company both present and future.
These facilities carry an interest rate of 10% to 14% per annum
c) Outstanding balances as on March 31, 2018
2. Micro & Small Enterprises: The Management has taken steps to identify the enterprises which have provided goods and 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, 2018 has been made in the financial statements based on information received and such amount outstanding as on 31st March, 2018 to Micro and Small Enterprises is NIL. 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.
3. Figures for the previous year have been regrouped/re-classified to conform to the figures of the current year.
Mar 31, 2016
Terms/ Rights attached to Shares:- The Company has only one class of paid-up equity shares having par value of Re.1/-per share. Each shareholder of equity share is entitled to one vote per share. The Company declares and pays Dividend in Indian Rupees only. The Dividend proposed by the Board of Directors is subject to approval of the shareholders in the Annual 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, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by shareholders.
f) Bonus Shares/ Buy back shares for Consideration other than cash being received during the past five Years
(1) Aggregate number and class of shares allotted as fully paid up pursuant to contracts without payment being received in Cash - Nil
(2) Aggregate number and class of shares allotted as fully paid up by way of Bonus shares - Nil
(3) Aggregate number and class of Shares bought back - Nil
Notes for Long Term Borrowings From Banks and Financial Institutions:
Term Loans from Banks:
(i) United Bank Of India: Outstanding amount payable to UBI.
Term Loans from Financial Institutions:
(i) SREI Equipment Finance Limited :
Secured by Subservient charge on movable fixed assets of the company worth Rs. 308 Crores.
(ii) Mahindra & Mahindra Financial Services Limited :
Secured by hypothecation of tippers financed through the loan arrangements.
(iii) Magma Fincorp Limited:Securen by Hypothication of specific assets purchased out of the loan amount.
Note: CC Limits from Axis bank 13.25%, Bank of India 13.20%, IDBI Bank 14.75%, Kotak (ING Vysya) 14.55%, OBC 13.25%,
SBI 14.85%, ICICI Bank 14.75% &12.00%.
The company has availed the Working capital Cash credit facility from various banks under Multiple Banking Arrangement are secured by:
i) Pari-Passu First charge by way of hypothecation of the company''s inventory, work-in-progress and receivables, both present and future (otehr than project specific) with other working capital lenders.
ii) Pari-Passu second charge on all the unencumbered movable fixed assets of the company, both present and future with other working capital lenders.
*Others - Subsidiary Companies Investments in PT Madhucon Sriwijaya Power and Madhucon Energy Ltd has been sold. Investment in Rjauli Bakhtiyapur Expressways Ltd, Agastyamuni Hydro Power Pvt Ltd, Rudrapayag Hydro Power Ltd and Tilwara Hydro Power Pvt Ltd has written off during the financial year 2015-16.
*Others-Associate Companies Investment of Madhucon Sugars & Power Industries Ltd and MBN Anchored Earth Ltd has been sold during the financial year 2035-36. Investment in Ramnagar Power Pvt Ltd has been written off during the financial year 2035-36.
i) *Other Advances given to Rudraprayag Hydro Power Pvt Ltd Rs.328.3 3 lakhs, Ramnagar Power Pvt Ltd Rs.7.47lakhs, African Natural Resources Ltd (Mauritius) Rs.23.67lakhs, Legend Natura Resources Ltd (Mauritius) Rs.20.62lakhs and Madhucon Oil & Gas Ltd Rs.2.73lakhs has been written off since the companies closed during the F.Y. 2035-36.
ii) Vijayawada - Machilipatnam Expressways Limited a step down subsidiary of the Company entered in to concession agreement with National Highways Authority of India (NHAI) for developing a road project in Andhra Pradesh state. NHAI has terminated the Concession Agreement vide letter no : NHAI /BOT-I/3 3039/302/2007/63 dated : 29th October 2033 though NHAI failed to issue ROW and further confirmed it vide its letter no. NHAI/BOT-I/3 3039/302/2007/403 dated 27th August, 2034. Company has preferred a claim on NHAI for an amount of Rs. 3 3859.70lakhs towards expenses incurred and losses suffered on account of obtaining permits, financial costs, agency charges and consultants fee etc. on this project by the Company and the EPC Contractor. The advances given has been written off during the financial year 2035-2036.
iii) The company has got land allotted through auction bidding to the extent of 9.04 acres at Kukatapally in SY.378 & 379 by Andhra Pradesh Housing Board (APHB) under development agreement dated 9.32.2005 and incorporated the three SPVs as Subsidiaries Madhucon Mega Mall Private Limited (Shopping Mall cum Multiplex), Nama Hotels Private Limited (Four Star Hotel) and Madhucon Heights Private Limited (Residential/office).
Due to unavoidable circumstances, the construction of Shopping Mall cum Multiplex project could not be completed within the time by Madhucon Mega Mall Private Limited. Hence the APHB issued letter bearing No.305/Madhucon/AE/PC/2005, dated 36-32-2033 for revoking the Power of Attorney and Resumption of land to the extent of 5.32 Acres, aggrieved by the above said letter the company filed arbitration petition under sec.9 of Arbitration and conciliation Act,3996 before the XIA C J Court, CCC, Hyderabad seeking injunction against the APHB and after elaborate arguments the Hon''ble court was pleased to pass the Status quo order against the APHB and the same is pending.
Further based on the internal assessment and a legal opinion, the management is confident that it will succeed the above case and the loan given to such SPV is fully realizable. The carrying value of the investment is stated as book value. Their is no effect of going concern assumption.
iv) Unsecured Loans and advances include amounts given to Nama Investments Limited and NNR Infra Investments Private Limited. These companies have been incurring losses and the accumulated losses exceeded the net worth of these companies. As the value of investments of these companies are more than the loans and advances due from these companies, management is confident on the realisation carrying value of the assets at the values stated in the books of accounts.
v) Madhucon Infra Limited, Trichy-Thanjavur Expressways Limited, Madhucon Heights Private Limited, Nama Hotels Private Limited, PT Madhucon Indonesia and Madhucon Natural Resources Limited, Subsidiaries of the Company have been incurring losses and except MIL, net worth of these companies are fully/ substantially eroded. The management is taking necessary steps/ initiatives to improve the activities/business in these companies. Upon implementation of these initiatives, the management is confident of improving the profitability in these subsidiaries. Management is also confident that the carrying values of investments in and unsecured interest free loans and advances to these subsidiaries (which included amounts given as a sub-ordinate debt in terms of Common Loan Agreement entered with Bankers as a part of promoter''s contribution from time to time to its road SPVs for their project finances) are realizable at the value stated in the books.
1. 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.
2. Segmental Reporting:
The Company''s operations predominantly consist of construction/project activities. Hence there are no reportable segments under Accounting Standard-17.
3. 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, 2016 has been made in the financial statements based on information received and such amount outstanding as on 31st March, 2016 to Micro and Small Enterprises is NIL. 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.
4. In accordance with Accounting Standard 11(revised)the net exchange gain/(Loss) credited to profit & loss account is Rs.155.06Lakhs (previous year net exchange loss debited Rs.166.03lakhs) and foreign exchange difference (net) on capital account included in the cost of respective asset is Rs. Nil (previous year: Rs. Nil ).
5. Additional information pursuant to the provisions of Schedule III to the Companies Act, 2013 (wherever applicable).
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
StandardÂ17.
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.
Mar 31, 2012
1. Contingent Liabilities not provided for:
As at As at
Particulars 31.03.2012 31.03.2011
Rs. (Lakhs) Rs. (Lakhs)
Bank Guarantees/Letter of
Credit issued by the banks 110198.00 109096.00
on behalf of the Company.
Corporate Guarantees issued
by the Company on behalf 126965.00 110674.61
of its subsidiaries and others
Disputed Sales Tax (on appeal) 974.03 974.03
Income-tax demand contested
in appeal. 7244.20 7189.30
2. 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.
3. The Income Tax assessments of the Company have been completed up to
the assessment year 2008- 09. The disputed demand outstanding up to the
said assessment year is Rs.7244.20 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.
4. Turnover (Civil Engineering Projects) include machinery and
equipment supplied to Simhapuri Energy Private Limited (Subsidiary
Company) Rs.59403.00 Lakhs as part of EPC contract.
5. Segmental Reporting:
The Company's operations predominantly consist of construction /
project activities. Hence there are no reportable segments under
Accounting Standard à 17.
6. Joint Ventures:
The Company has financial 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-BinaPuri JV (ii) 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, 2012 has been made in the financial statements based on
information received and such amount outstanding as on 31st March, 2012
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) credited to profit & loss account is Rs.58.36
Lakhs (previous year net exchange gain credited Rs. 6.10 lakhs) and
foreign exchange difference (net) on capital account included in the
cost of respective asset is Rs. Nil (previous year: Rs.Nil).
9. Related Party Transactions:
Following are the list of related parties and relationships
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 Private Limited
18. PT Madhucon Indonesia
19. Madhucon Toll Highways Limited
20. Vijayawada-Machilipatnam Expressways Limited
C. Associates
21. Madhucon Sugars and Power Industries Limited
22. M.B.N. Anchored Earth Limited
23. Madhucon Properties Limited
24. Ramnagar Power Private Limited
D. Enterprises where Significant Influence Exists
25. Nama Investments Limited
26. Madhucon Granites Limited
27. Madhucon Infotech 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 Project Private Limited
37. Pallakurichi Power Private Limited
38. Tiruchendur Power Private Limited
E. Joint Ventures
39. Madhucon-Bina Puri JV
40. Madhucon-Sino Hydro JV
41. Madhucon-ABCI JV
42. Madhucon-Valay JV
43. Madhucon-Sree Rama JV
44. Madhucon-CGGV JV
F. Key Management Personnel and their relatives:
45. Sri Nama Seethaiah Managing Director
46. Sri S. Vaikuntanathan Whole-time Director
10. Consolidation of Accounts:
In accordance with the Accounting Standards AS-21 and AS-23 on
Consolidated Financial Statements read with Accounting Standard AS-27
on Accounting for Investments in Subsidiaries/Associates/JVs, the
figures of the subsidiaries are consolidated with the parent company.
11. 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.
12. Figures of previous year have been
regrouped/rearranged/reclassified wherever necessary to conform to the
current year presentation.
Mar 31, 2011
1. Contingent Liabilities not provided for:
(Rs. in Lakhs)
Sl.
No. Particulars 2010 - 2011 2009 - 2010
1 Bank Guarantees/Letters of
Credit issued 109096.00 63827.08
by the banks on behalf of the Company.
2 Corporate Guarantees issued by
the Company 107849.00 78691.51
on behalf of its subsidiaries
and others
3 Disputed Sales Tax (on appeal) 974.03 974.03
4 Disputed Entry Tax - 36.16
5 Income-tax demand contested
in appeal. 7189.30 1784.37
2. The long term unquoted investments in equity shares of subsidiary
companies as given hereunder and included in Schedule V are pledged
with Banks and Financial Institutions which have extended loan
facilitates to the respective investee companies.
3. The Income Tax assessments of the Company have been completed up to
the assessment year 2008-09. The disputed demand outstanding up to the
said assessment year is Rs.7189.30 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.
4. Turnover (Civil Engineering Projects) include, machinery and
equipment supplied to Simhapuri Energy Private Limited (Subsidiary
Company) Rs. 632.77 as part of EPC contract.
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 financial 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
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, 2011 has been made in the financial statements based on
information received and such amount outstanding as on 31st March, 2011
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) credited to profit & loss account is Rs. 6.10
Lakhs (previous year net exchange gain credited Rs. 1.48 lakhs) and
foreign exchange difference (net) on capital account included in the
cost of respective asset is Rs. Nil (previous year: Rs.Nil ).
9. Related Party Transactions:
Following are the list of related parties and relationships
A. Subsidiary Companies
1. Madhucon Infra Limited
2. Madurai à 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 Hydri Power Private Limited
10. Madhucon Natural Resources Limited, Singapore
11. Madhucon Oil & Gas Limited, Ghana
B. Step down Subsidiaries
12. TN (DK) Expressways Limited
13. Trichy - Thanjavur Expressways Limited
14. Madhucon Agra-Jaipur Expressways Limited
15. Chapra HajipurExpressways Limited
16. Barasat-Krishnagar Expressways Limited
17. Ranchi Expressways Limited
18. Simhapuri Energy Private Limited
19. PT Madhucon Indonesia
C. Associates
20. M.B.N.Anchored Earth Limited
21. Madhucon Properties Limited.
22. Madhucon Toll Highways Limited
23. Ramnagar Power Private Limited
D. Enterprises where significant influence exists
24. Nama Investments Limited
25. Madhucon Granites Limited
26. Madhucon Info Tech Limited
27. Madhucon Land Developers Limited
28. Madhucon Sugars and Power Industries Limited
29. Madhucon Estates Limited
30. Nama Properties Limited
31. NNR Infra Investments Private Limited
32. Rajanagaram Gas Power Private Limited
E. Joint Ventures
33. Madhucon Bina Puri JV
34. Madhucon Sino-Hydro JV
35. Madhucon ABCI JV
36. Madhucon Valay JV
37. Madhucon Sree Rama JV
38. Madhucon CGGV JV
F. Key Management Personnel and their relatives:
39. Sri Nama Seethaiah Managing Director
40. Sri S. Vaikuntanathan Whole-time Director
10. Consolidation of Accounts :
In accordance with the Accounting Standards AS-21 and AS-23 on
Consolidated Financial Statements read with Accounting Standard AS-27
on Accounting for Investments in Subsidiaries/Associates/JVs, the
figures of the subsidiaries are consolidated with the parent company.
Mar 31, 2010
1. Contingent Liabilities not provided for: (Rs. in Lakhs)
Particulars As at 31.03.2010 As at 31.03.2009
Bank Guarantees/Letters of
Credit issued 63827.08 47844.00
by the banks
on behalf of the Company.
Performance Guarantee
issued by the Company 35427.90 29161.00
to its Subsidiaries and others
Corporate Guarantees issued
by the Company 43263.61 17398.00
on behalf of its subsidiaries
and others
Disputed Sales Tax (on appeal) 974.03 974.03
Disputed Entry Tax 36.16 36.16
Income-tax demand contested
in appeal. 1784.37 3637.42
2. Segmental Reporting:
The Companys operations predominantly consist of construction /
project activities. Hence there are no reportable segments under
Accounting Standard - 17.
3. Joint Ventures:
The Company has financial interest in the following Joint Ventures:
(i) Madhucon ABCI JV
(ii) Madhucon Sree Rama JV
(iii) Madhucon Valay JV
Foreign Joint Ventures:
(i) Madhucon Bina Puri JV (ii) 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, 2010 has been made in the financial statements based on
information received and such amount outstanding as on 31st March, 2010
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 1.48 Lakhs
(previous year net exchange gain credited Rs.244.53 lakhs) and foreign
exchange difference (net) on capital account included in the cost of
respective asset is Rs. Nil (previous year: Rs.Nil ).
6. Related Party Transactions:
Following are the list of related parties and relationships
A. Subsidiary Companies
1. M/s. Madhucon Infra Limited
2. M/s. TN (DK) Expressways Limited
3. M/s. Trichy - Thanjavur Expressways Limited
4. M/s. Madurai à Tuticorin Expressways Limited
5. M/s. Madhucon Energy Limited
6. M/s. Madhucon Mega Mall Private Limited
7. M/s. Nama Hotels Private Limited
8. M/s. Madhucon Heights Private Limited
9. M/s. Madhucon Natural Resources Limited, Singapore
10. M/s. PT Madhucon Indonesia
B. Step down Subsidiaries
11. M/s. Madhucon Agra-Jaipur Expressways Limited
12. M/s. Simhapuri Energy Private Limited
C. Associates
13. M/s. M.B.N.Anchored Earth Limited
14. M/s. Madhucon Properties Limited.
15. M/s. Madhucon Toll Highways Limited
D. Enterprises where significant influence exists
16. M/s. Nama Investments Limited
17. M/s. Madhucon Granites Limited
18. M/s. Madhucon Info Tech Limited
19. M/s. Madhucon Land Developers Limited
20. M/s. Madhucon Sugars and Power Industries Limited
21. M/s. Madhucon Estates Limited
22. M/s. Nama Properties Limited
23. M/s. NNR Infra Investments Private Limited
E. Joint Ventures
24. M/s. Madhucon Bina Puri JV
25. M/s. Madhucon Sino-Hydro JV
26. M/s. Madhucon ABCI JV
27. M/s. Madhucon Valay JV
28. M/s. Madhucon Sree Rama JV
F. Key Management Personnel and their relatives:
29. Sri N. Seethaiah Managing Director
30. Sri S.Vaikuntanathan Whole-time Director
7 Consolidation of Accounts :
In accordance with the Accounting Standards AS-21 and AS-23 on
Consolidated Financial Statements read with Accounting Standard AS-27
on Accounting for Investments in Subsidiaries/Associates/JVs, the
figures of the subsidiaries are consolidated with the parent company.
8. Figures for the previous year have been regrouped recast, wherever
necessary to conform to those of the current year.