Notes to Accounts of Madhucon Projects Ltd.

Mar 31, 2024

1.8 Contingent Liabilities and Contingent assets

A disclosure for Contingent liabilities is made in the notes on accounts when there is a possible obligation or present obligations that way, but probably will not, require an outflow of resources. A contingent liabilities arises where there isa a liability that cannot be reconginsed because it cannot bo measured reliably,

A contingent asset is not recognised unless it becomes virtually certain that an inflow of economic benefits wilt arise. When an inflow of economic benefits is probable, contingent assets are disclosed in the standalone financial statements. Contingent liabilities and contingent assets are reviewed at each balance sheet date.

1.9 Provisions

The Company recognises previsions when there is present obligation as a result of past event and it is probable that [here will be an outflow of resources and reliable estimate can be made of the amount of Ihe obligation.

1.10 Investments In subsidiaries and Joint ventures

The Company accounts for the investments in equity shares of subsidiaries and joint ventures at cost in accordance with Ind AS 27- Separate Financial Statements. Tho Company reviews its carrying value of investments carried at amortised cost annually, or more frequently when there is indication for impairment. If the recoverable amount Is lass than its carrying amount, the impairment loss Is accounted for. On disposal of investment in subsidiaries and joint venture, the difference between net disposal proceeds and the carrying amounts are recognised in the Standalone Statement of Profit and Loss.

1.11 Employee Benefits:

Provident fund is defined Contribution scheme and contributions are charged to profit and loss account of the year when the contributions to the respective funds are due. Other retirement benefits such as Gratuity, leave encashment etc., are recoghized on basis of the independent actuarial valuation.

1.12 Financial Instruments:

Financial easels and financial iiabilities are recognised when the Company becomes a party to tho contractual provisions of the instrument. Financial assets and financial liabilities are initially measured at transaction values and where such values are different from the fair value, at fair value. Transaction costs that are directly attributable tc tine acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities al fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition, Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognised Immediately in profit or loss.

A. Financial Assets

Financial assets are recognised when the Company becomes a party to the contractual provisions of the instruments. Financial assets other than trade receivables are initially recognised at fair value plus transaction costs for all financial assets not carried at fair value through profit or loss. Financial assets carried at fair value through profit or loss is initially recognised al fair value, and transaction costs are expensed in the Statement of Profit and Loss. Subsequent Measurement

For the purpose of subsequent measurement, financial assets are classified in following categories.

(a) Financial Assets at Amortised Cost

A financial assel is subsequently measured al amortised cost if it is held within a business model whose objective is to hold the asset in order to collect contra dual cash flows and the contractual forms of the financial asset give rise on specified dates to cash flows tin at are solely payments of principal and interest on the principal amount outstanding.

(b) Financial Assets Measured at Fair Value

A financial assel is subsequently measured at fair value through other comprehensive income if il Is held within 3 business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and the: contractual terms cf the financial asset give rise on specified dates to cash flows that are solely payments of principal and interesl on the principal amount outstanding. Further, in case where the company has made an irrevocable selection based on Us business model, for its investments which are classified as equity instruments, the subsequent changes in fair value are recognized in other comprehensive income. In any other case, financial asset is fair valued through profit and loss.

(c) Impairment of Financial Assets

The Company recognizes loss allowances using the expected credit loss (EGL) model for the financial assets which are not fair valued through profit or loss. Loss allowance for trade receivables with no significant financing component is measured at an amount equal to lifetime ECL For all other financial assets, expected credit losses are measured at an amount equal to Ihe 12-month ECL, unless there has teen a significant increase in credit risk from initial recognition in which case those are measured at lifetime ECL. The amount of expected credit losses (or reversal) that is required to adjust the loss allowance at the reporting date to the amount that is required lo be recognised is recognised as an impairment gain or loss in stalament of profit or loss.

(ft) De-recognition of Financial Assets

The Company de-recognises a financial asset only when the contractual rights to the cash flows from the asset expire, or it transfers the financial assel and substantially all risks and rewards of ownership of the asset to another entity. If the Company neither transfers nor retains substantially all the risks and rewards of ownership and continues to control the transferred asset, the Company recognizes its retained interest in the assets ar.d an associated liability for amounts it may have to pay.

If the Company retains substantially all the risks and rewards of ownership of a transferred financial asset, the Company continues to recognise the financial asset and also recognises a collateralised borrowing for the proceeds received.

S, Equity Instruments end Financial Liabilities

Financial liabilities and equity instruments issued by line Company are classified according to the substance of Ihe contractual arrangements entered into and the definitions of a financial liability and an equity instrument.

(a) Equity Instruments

An equity instrument is any contract that evidences a residual interest in the assets of the Company after deducting all of its liabilities. Equity Instruments which are Issued for cash are recorded at the proceeds received, net of direct issue costs. Equity instruments which are issued for consideration other than cash are recorded at fair value of the equity instrument.

(b) Financial Liabilities

Financial liabilities are classified, al initial recognition, as financial liabilities at FVPL. loans and borrowings and payables as appropriate. All financial liabilities are recognised initially at -air value and, in the case of loans and borrowings and payables, net of directly attributable tran sac lion costs.

(c) Subsequent Measurement

Financial liabilities are subsequently carried at amortized cost using the effective interest method. For trade and other payables maturing within one year from the balance sheet date, the carrying amounts approximate the fair value due to the short maturity of these instruments.

(d) Da-recOg nit ion of Financial Liabilities

Financial liabilities are de-recognised when the obligation specified in the contract is discharged, cancelled or expired. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are subsl anti ally modified, such an exchange or modification is treated as de-recognition of the original liability and recognition of a new liability. The difference in the respective carrying amounts is recognised in the Statement of Profit and Loss,

C. Offsetting Financial Instruments

Financial assets and financial liabilities are offset and the net amount is reported in the Balance Shagf if there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis to realise the assets and settle the liabilities simultaneously.

1.13 Cash and cash equivalents

Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and demand deposits with an original maturity of three months or less and highly liquid investments that are readily convertible into known amounts of cash and which are subject to an insignificant risk of changes in value net of outstanding bank overdrafts as they are considered an integral part of the company''s cash management.

1.14 Earnings per Share:

Basic earnings per equity share are computed by dividing Ihe net profit or loss for the year attributable to the Equity Shareholders by the weighted average number of equity shares outstanding during the year. Diluted earnings per share is computed by dividing the net profit or loss For the year, adjusted for the effects of dilutive potential equity shares, attributable to the Equity Shareholders by the weighted average number of the equity shares and dilutive potential equity shares outstanding during the year except where the results are anti-dilutive.

1.15 Lease

The Company has no leases cr any contract containing lease and accordingly, no disclosure has been made on the same.

1.16 Impairment of non-financial assets

Non-fingnci.-jl assets other than inventories, deferred tax assets and non-current assets classified as held for sale are reviewed at each Balance Sheet date to determine whether there Is any indication oF Impairment. IT any such indication exists, or when annual Impairment testing

for an asset is required, the Corporation estimates the asset''s recoverable amount. The recoverable amount is the higher of the asset''s or Cash-Generating Unit''s {CGU) fair value less costs of disposal and its value in use. Recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets.

When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount.

1.17 Schedule 111 amendment disclosures;

Ministry of Corporate Affaire ("MCA") issued notification dated March 24, 2021 to amend Schedule 111 of the Companies Act, 2013 to enhance the disclosures required to be made by the Company in its financial statements. These amendments ere applicable tD the Company for the financial year starting April 1, 2021 and applied to the standalone financial statements¹

- Certain additional disclosures in the statement of changes in equity such as changes in equity share capital due to prior period errors and restated balances at the beginning of the ourron! reporting period.

* Additional disclosure for shareholding of promoters.

* Additional disclosure for ageing schedule of trade receivables, trade payables and capital work-in-progress.

* Specific disclosure such as compliance with approved schemes of arrangements compliance with number of layers of companies, title deeds of immovable property not held in name of company, loans and advances to promoters, directors, key managerial personnel (KMP) and related parties etc.

* Additional disclosure for relating to Corporate Social Responsibility fCSR) and undisclosed income.

1,1 B Statement of Cash Flows:

Statement of Cash flows is prepared segregating the cash flows from operating, investing and

financing activities. Cash flow from operating activities is reported using indirect method. Under the indirect method,

the net profil^loss) is adjusted for the effects of;

i. Changes during the year in inventories and operating receivables and payables and transactions of a nun-cash nature;

ii. Non-cash Items such as depreciation, provisions, unrealised foreign currency gains and losses, and undistributed profits of associates; and

iii. All other items for which the cash effects are investing or financing cash flows.

The cash flows from operating, investing and financing activities of the Company is segregated based on the available information. Cash and cash equivalents {including bank balances) are reflected as such in the Cash Fiow Statement.

1,19 Property, Riant and Equipment

Property, Plant and Equipment are stated at cost of acquisition including any directly attributable expenditure on making the asset ready for its intended use, attributable interest and finance costs. It any, till the dale af acquisition/ installation of the assets less accumulaled depreciation and impairment losses, if any. Subsequent expenditure ratal ing to Property, Plant and Equipment is capitalised only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably, An item of ?roperty, plant and equipment Is derecognised upon disposal or when no future economic benefits are expected to arise from the continued use of the asset.

On transition to Ind AS, the Company has opted to continue with the carrying vaiues measured under the previous GAAP as at April 01 _r 2015 of its Property, Plant and Equipment and use the carrying value as deemed cost of the Property, Plant and Equipment on the date of transition i,e April 01, 2015.

1.30 Intangible Assets

Identifiable intangible assets are recognised when the Company controls the asset, it is probable that future economic benefits attributed to the asset will flow to the Company and the cdsI of I ha asset Can be reliably measured. Intangible assets are stated at cost, less accumulated amortisation and accumulated impairment losses, if any. The estimated useful life and amortization method reviewed at the end of each reporting period, with the effect of any changes in estimate being accounted for on a prospective basis.

1.21 Depreciation/ Amortisation

Depreciable amount for assets is the cost of an asset, or other amount substituted for cost less its estimated residual value. Depreciation on Property, Plant and Equipment have been provided on Straight-Line m el hod in accordance with the Schedule II cf the Companies Act, 2013, based on the useful life estimated on the technical assessment as in force and proportionate depreciation are charged for additions/disposals during the year. In respect of additions I disposal to the fixed assets / leasehold improvements, depreciation is charged from the date the asset is ready to use I up to the date of disposal. The asset''s useful lives are reviewed and adjusted, if appropriate, at the end of each reporting period.

1.22 Investment property

Investment properties are properties held to earn rentals and/or for capital appreciation (including property under Construction for such purposes). Investment properties are measured initially at Cost, including transaction casts. Subsequent to initial recognition, investment properties are measured in accordance with the Ind AS16''g requirement for cost model-

An investment property is derecognised upon disposal or when the investment property is permanently withdrawn from use and no further economic benefits expected from disposal.

Any gain or loss arising on de-recognibon of the property is included in profit cr lass in the period in which the property is derecognized.

1.23 Inventories:

Raw Materials:

Raw Materials, construction materials and stores & spares are valued at lower of weighted average cost or not realizable value Cost includes ail charges in bringing the materials to the place of usage, excluding refundable duties and taxes.

Work in Progress:

Work-in-Progress is valued ai the contracted rates less profit margin / estimates.

1.24 Interest in Joint Operations

A joint operation is a joint arrangement whereby the parties that have joint control of the arrangement have rights to tiie assets, and obligations for the liabilities, relating to the arrangement. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require unanimous consent of the parties sharing control.

When a company undertakes its activities under joint operations, the company as a joint operator recognises in relation to its interest in a joint operation:

1 its assets, including its share of any assets held jointly.

2. its liabilities, including its share of any liabilities incurred jointly,

3. its revenue, including its share any revenue arising jointly.

4. its expenses, including its share of any expenses Incurred Jointly.

The Company accounts for the assets, liabilities, revenues, and expenses relating to its intetest in a joint operation in accordance with the Ind AS applicable to the particular assets, liabilities, revenues, and expenses.

1.25 Insurance claims

Insurance claims are accounted tor on the basis of claims admitted f expected to be admitted and to the extent that Ihe amount recoverable can be measured reliably and it is reasonable to expect ultimate collection.

1.26 Claims

Claims against the company not acknowledged as debts are disclosed under contingent liabilities. Claims made by the company are recognised as and when the same is approved by the respective authorilles with whom the claim is lodged.

1.27 Commitments

Commitments are future liabilities for contractual expenditure. Commitments are classified and disclosed as follows:

a} Estimated amounl of contracts remaining to be executed on capital account and not provided for h) Uncalled liability on shares and other investments pertly paid

c) Funding related commitment to subsidiary, associate and jcint venture companies and

d) Other non-can Celia bio commitments, if any, to tho extent they are considered material and relevant in the opinion of management.

e) Other commitments related to sal os,''procurements made in the normal course of business are not disclosed to avoid excessive details.

2.33 Employee benefits

Gratuity: The Company provides for gratuity, a defined benefit retirement plan ("the Gratuity Plan''¹} covering eligible employees of Madhucon. The Gratuity Plan provides a lumpsum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount based on the respective employees salary and the tenure of employment with the Company.

Liabilities with regard to these defined benefit plan are determined by actuarial valuation, performed hy an external actuary, at each Balance Sheet date using the projected unit credit method. These defined benefit plans expose the Company to actuarial risks, such as longevity risk, interest rate risk and market risk.

Provident Fund: Eligible employees receive benefits from a provident fund, which is a defined benefit plan. Both the eligible employee and the Company mgka monthly contributions to ihE provident fund plan equal to a specified percentage of the covered employee''s salary.

2.40 Some of the Dank Accounts at closed projects which are in dormant and have not been reconciled due to nonavailability of statements.

2-41 Some of the entries as per 20 AS not reflected in books of accounts and the same is under reconciliation with books of account.

2.42 Certain accounts are pending from long times which are not necDverabte/payable as per limitation Act, passed necessary entries in books of account.

''iri thft

2.43 A portion of the balance receivable from Madhucon Infra Limited (subsidiary company) has been written off^In nooks of account based Dn the internal assessment.

2.45 Going Concern

In Preparing the financial statements the Board of Directors have considered the operations of the Company ^as S^oin9 concern notwithstanding that the Company incurred a net loss of Rs.979.59 Lakhs (Previous Year a net Profit Rs.4S9.21} Lakhs for the financial year ended 31st march 2024, and as at that dale, the Company is in net current liabilities position of Rs. 92,331.93 Lakhs (Previous year Rs. 1, 29,223.44 Lakhs) as at 31st March 2024, and has defaulted in payments of dues to Banks. However, the management believes the use of going concern assumption on the preparation of the financial statements of the company is still appropriate in view of closing some of the liabilities on OTS basis and implementation of OTS agreements already entered into in case of some banks, and its continuing discussions with its other lenders to obtain approval for and an appropriate debl resolution plan and also, that the company will continue to be in operation in the foreseeable future.

2.46 Additional Regulatory Information

i) Title Deeds of ail immovable properties are held in the name of the company.

ii) The Company is not in possession of any Investment property.

in) The Company has not revalued any of its Property, Plant and Equipment during the year.

iv) No loans and advances were granted to promoters, directors, KMPs

v) There is no capital work-in-progress

vi) There are no proceedings initiated or pending against the company for holding any ben a mi property under the Benami Transactions (Prohibition) Act, 1968 (45 of 1983) and rules made thereunder.

vii) The company has borrowings from banks on the basis of security et current assets but those borrowings have been declared as NPAs by the banks. Borrowings from some of the Banks were settled on OTS,

vlii) The company was not declared as a willful defaulter by any bank or financial institution.

ix) The company did not enter into any transactions with struck off companies.

x} There are no charges or satisfaction yet to be registered with ROC beyond the statutory period

xi)The company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with the Companies (Restriction on number of Layers) Rules, 2017,

xli) There are no Scheme of Arrangements approved by the Competent Authority in terms of sections 230 to £37 of the Companies Act, 2013.

xiii) Utilization of Borrowed funds and share premium:

(A) The company didn’t advance or lend or invest funds (either borrowed funds or share premium or any other sources or kind o^r'' funds) to any other personas) or entity(ies),including foreign entities (Intermediaries) with the understanding (whether recorded in writing or otherwise) that the Intermediary shall

(i) Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf ot the company (Ultimate Beneficiaries) or

(ii) Provide any guarantee, security or the tike to or on behalf of the Ultimate Beneficiaries

(B) The company didn''t receive any fund from any person (s) or entity (ies), Including foreign enlities (Funding Party) with the understanding (whether recorded in writing er otherwise) that the company shall

(i) Directly or indirectly lend or invest in other persons or entilios identified in any manner whatsoever by or on behaJf of the Funding Party (Ultimate Beneficiaries) or

(ii) Provide any guarantee, security or the like on behalf of the Ultimata Beneficiaries

Comments:

Current Ratio:

Current Ratio is improved due to come down of Current Liabilities due to settlemenu payment of some of the liabilities and also slight increase in the Current Assets.

Debt Service Coverage Ratio:

Significant improvement in the ratio due to increase in the revenue from operations and reduction m the liabilities by clearing long pending dues.

Return on Equity Ratio:

Reduction in the Return on Equity Ratio due to net loss incurred by the company during the current financial year. Trade payables turnover ratio:

improvement in the Ratio due to reduction in I he Trade Payables by clearing the Trade creditor''s dues.

Ret capital turnover ratio:

Met Capital Turnover Ratio is improved duo to increase in the Sales turnover and rad action in liabilities by clearing the dues.

inventory turnover ratio:

Inventory Turnover Ratio is increased as result of better utilization of materials and effective management policies.

Net profit ratio:

Net profit Turnover Ratio is negative due to incurring of net loss by the company during the year Undisclosed Income

There were no transactions relating to previously unrecorded income that were surrendered or disclosed as income in the tax assessments under the Income Tax Ad, 1961 (43 of 1961) during the year.

xvi) Corporate Social Responsibility

Since the company Is incurring losses in current year and consecutively for preceding 2 financial years CSR is not applicable

xvii) Details of Crypto Currency or Virtual Currency

The company has neither traded nor Invested in Crypto currency or Virtual Currency during the financial year 2,47 Figures for the previous year have been regrouped/re-ctassified to conform to the figures of the current year

In terms of our report attached

For P.Murali & Co. For and on behalf of the Board

Chartered Accountants FRN: Q07257S

A. Krishna Rao N. Seethaiah Mohammad Shafi J, Samba siva Rao

Partner Managing Director Jt Managing Director Director {F & A)

Membership Number 02Q0S5 DIN-00704491 Dl N-Q 717 0 2 65 DIN: 095 264 7 5

U DIN: 24 020 085BK AU H M 9 560

Place: Hyderabad K, Venkateswgrlu D, Malla Reddy

Date: May 18,20.24 Director cum CFO Company Secretary

'' DIN-097131OS ACS: 9559

---

Mar 31, 2018

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 31^st March, 2018 has been made in the financial statements based on information received and such amount outstanding as on 31^st 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 31^st March, 2016 has been made in the financial statements based on information received and such amount outstanding as on 31^st 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 Standard–17.

3. Joint Ventures:

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

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

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

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

7. Related Party Transactions:

(I) Following are the list of related parties

A. Subsidiary Company

1. Madhucon Infra Limited

2. Madurai – Tuticorin Expressways Limited

3. Madhucon Energy Limited.

4. Madhucon Mega Mall Private Limited

5. Nama Hotels Private Limited

6. Madhucon Heights Private Limited

7. Agastyamuni Hydro Power Private Limited

8. Rudraprayag Hydro Power Private Limited

9. Tilwara Hydro Power Private Limited

10.PT Madhucon Sriwijaya Power

B. Step down Subsidiaries

11. TN (DK) Expressways Limited

12. Trichy - Thanjavur Expressways Limited

13. Madhucon Agra-Jaipur Expressways Limited

14. Chhapra Hajipur Expressways Limited

15. Barasat-Krishnagar Expressways Limited

16. Ranchi Expressways Limited

17. Simhapuri Energy Limited

18. Madhucon Toll Highways Limited

19. Vijayawada-Machilipatnam Expressways Limited

20. Rajauli Bakthiyarpur Expressways Limited

21. PT Madhucon Indonesia

C. Associates

22. M.B.N. Anchored Earth Limited

23. Madhucon Properties Limited.

24. Ramnagar Power Private Limited

25. Madhucon Sugar & Power Industries Limited

D. Enterprises where Significant Influence Exists

26. Nama Investments Limited

27. Madhucon Info Tech Limited

28. Madhucon Land Developers Limited

29. Madhucon Estates Limited

30. Nama Properties Limited

31. NNR Infra Investments Private Limited

32. Rajanagaram Gas Power Private Limited

33. Madhucon Stone Crushers Private Limited

34. Madhucon Mineral Resources Limited

35. Nama Energy Private Limited

36. Umarwada Gas Power projects Limited

37. Pallakurichi Power Private Limited

38. Vamu Advisors Private Limited

E. Joint Ventures

39. Madhucon Sino-Hydro JV

F. Key Management Personnel:

40. Mr. Nama Seethaiah Managing Director

41. Mr. K. Srinivasa Rao Wholetime Director

---

Mar 31, 2014

Notes for Long Term Borrowings From Banks and Financial Institutions

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

4 income Tax demand contested in 6,621.52 5601.84 appeal

5. Segmental Reporting:

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

6. Joint Ventures:

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

Foreign Joint Ventures:

(i) Madhucon Sino-Hydro JV

7. Micro & Small Enterprises

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

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

9. Operating Cycle:

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

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

---

Mar 31, 2013

1.1 Contingent Liabilities not provided for:

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

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

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

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

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

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

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

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

1.5 Segmental Reporting:

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

1.6 Joint Ventures:

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

Foreign Joint Ventures:

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

1.7 Micro & Small Enterprises

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

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

1.9 Related Party Transactions:

(I) Following are the list of related parties

A. Subsidiary Company

1. Madhucon Infra Limited

2. Madurai - Tuticorin Expressways Limited

3. Madhucon Energy Limited.

4. Madhucon Mega Mall Private Limited

5. Nama Hotels Private Limited

6. Madhucon Heights Private Limited

7. Agastyamuni Hydro Power Private Limited

8. Rudraprayag Hydro Power Private Limited

9. Tilwara Hydro Power Private Limited

10. Madhucon Natural Resources Limited, Singapore

B. Step down Subsidiaries

11. TN (DK) Expressways Limited

12. Trichy - Thanjavur Expressways Limited

13. Madhucon Agra-Jaipur Expressways Limited

14. Chhapra Hajipur Expressways Limited

15. Barasat-Krishnagar Expressways Limited

16. Ranchi Expressways Limited

17. Simhapuri Energy Limited

18. PT Madhucon Indonesia

19. PT Madhcon Sriwijaya Power

20. Madhucon Toll Highways Limited

21. Vijayawada-Machilipatnam Expressways Limited

22. Rajauii Bakthiyarpur Expressways Limited

C. Associates

23. M.B.N. Anchored Earth Limited

24. Madhucon Properties Limited.

25. Ramnagar Power Private Limited

26. Madhucon Sugar & Power Industries Limited

D. Enterprises where Significant Influence Exists

27. Nama investments Limited

28. Madhucon Granites Limited

29. Madhucon Info Tech Limited

30. Madhucon Land Developers Limited

31. Madhucon Estates Limited

32. Nama Properties Limited

33. NNR Infra investments Private Limited

34. Rajanagaram Gas Power Private Limited

35. Madhucon Stone Crushers Private Limited

36. Madhucon Mineral Resources Limited

37. Nama Energy Private Limited

38. Umarwada Gas Power projects Limited

39. Paiiakurichi Power Private Limited

40. Vamu Advisors Private Limited

E. Joint Ventures

41. Madhucon Bina Puri JV

42. Madhucon Sino-Hydro JV

43. Madhucon ABCi JV

44. Madhucon Valay JV

45. Madhucon Sree Rama JV

46. Madhucon CGGV JV

F. Key Management Personnel and their relatives:

47. Mr. Nama Seethaiah Managing Director

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

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

1.10 Operating Cycle:

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

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

---

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 – 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 – 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 – 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.