1. Company Overview:
Madhucon Projects Limited (MPL) or “the Company” 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 management’s 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) (“the Board”) 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 company’s 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.
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