Notes to Accounts of Manjeera Constructions Ltd.

Mar 31, 2024

4.4. All shares which are held by Company in its wholly owned subsidiary Manjeera Retail Holdings Private Limited are pledge to VISTRA ITCL (INDIA) LIMITED which is a security trustee for the loan availed from Catalyst Trusteeship Limited by the Manjeera Retail Holdings Private Limited.

4.5. 20% of Capital invested by Company in Vasavi Realtors LLP

11.1 The credit period towards trade receivables generally ranges between 30 to 180 days. Generally, no interest is recovered for payments received beyond due date.

11.2 In determining the allowance for trade receivables the company has used practical expedients based on financial condition of the customer, ageing of the customer receivables and overdues, availability of collaterals and historical experience of collections from customers. The concentration of risk with respect to trade receivables is reasonably low as most of the customers settle within the due dates, though there may be normal delays in collections.

The Company''s past history in dues becoming bad or doubtful was very insignificant.

13.1 Unsecured loans extended to related parties have been admitted as claims by the Resolution Professional of MCL after thorough verification of the supporting documents, amounting to ''41,08,79,495/-. The repayment of these loans to the related parties shall be carried out in accordance with the waterfall mechanism outlined in the Resolution Plan as submitted by the Resolution Applicant, subject to its approval by the Hon''ble National Company Law Tribunal (NCLT), Hyderabad.

15.1 Advances to directors or other offices of the Company or any of them either severally or jointly with any other person or amount due by firms or private companies respectively in which any director is a partner or a director or a member.

16.4 Rights of the share Holders

“The Company has only one class of shares. Equity shares having a par value of Rs. 10/-. Each holder of equity shares is entitled to one vote per share. All the equity shares rank pari passu in all respects including but not limited to entitlement for dividend, bonus issue and rights issue.

The Company declares and pays dividends in Indian Rupees. The dividend proposed by the Board of Directors, if any, is subject to the approval of the shareholders in the ensuing general meeting.”

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company in proportion of their shareholding.

18.1 Equitable Mortgage on land & Buildings of Developer share of Manjeera Monarch Project and Unit number 304 A in Aditya Trade Centre (F&G Blocks) & Open Exhibition area in ground floor and unit number 4,5,6,7 & 8 in Mezzanine floor belongs to Manjeera Estates Pvt Limited and G Yoganand in aditya Trade Centre(F&G Blocks). Present interest rate at 16.05% on monthly basis. Term loan is repayable in 30 monthly equal installment starting from January, 2020.

18.2 Term loan taken from other banks includes LICHFL-ECLGS loan amounting to Rs. 955.8 Lakhs which carries interest of 14% per annum and repayable in 48 equated monthly instalments.

18.3 Vehicles loan amounting to Rs. 10.08 Lakhs (March 31, 2023: Rs. 12.41 Lakhs) is secured by hypothecation of vehicles purchased.

18.4 Unsecured loans taken from related parties carries interest of 12% per annum compounded on annual basis and are repayable on demand.

18.5 Inter corporate deposits from others carries average interest of 12% per annum compounded on quarterly basis and are repayable on demand.

18.6 Since the company is undergoing CIRP process, moratorium is in effect due to which no interest has been booked post 18.07.2023. The Parties have filed their claim with the Resolution Professional and the list of creditors have been uploaded on the CD and IBBI website.

19.1 A. Defined benefit plan

The Company has a non fund based defined benefit gratuity plan and provides for gratuity for employees as per the Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of 5 years are eligible for gratuity at the rate of 15 days basic salary for each year of service until the retirement age.

The following tables set out the status of gratuity & Leave Encashment plans and the amount recognized in Company''s financial statements :

B. Defined Contribution Plan

The Company provides benefits in the nature of defined contribution plans viz, employee state insurance scheme and provident fund for qualifying employees. Under these Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognised ''12.73 Lakhs (March 31,2023: '' 12.12 Lakhs) towards contribution for mentioned funds in the Statement of Profit and Loss. The contributions payable to these plans by the Company are at rates specified in the rules of the Schemes.

C. Sensitivity Analysis Description of Risk Exposures

Valuations are performed on certain basic set of pre-determined assumptions which may vary over time. Thus, the Company is exposed to various risks in providing the above benefit which are as follows:

Interest Rate Risk: The plan exposes the Company to the risk of fall in interest rates. A fall in interest rates will result in an increase in the ultimate cost of providing the above benefit and will thus result in an increase in the value of liability (as shown in financial statements).

Liquidity Risk: This is the risk that the Company is not able to meet the short term benefit payouts. This may arise due to non availability of enough cash/cash equivalent to meet the liabilities or holding of illiquid assets not being sold in time.

Salary Escalation Risk: The present value of the above benefit plan is calculated with the assumption of salary increase rate of plan participants in future. Deviation in the rate of increase in salary in future for plan participants from the rate of increase in salary used to determine the present value of obligation will have a bearing on the plan''s liability.

Demographic Risk: The company has used certain mortality and attrition assumptions in valuation of the liability. The Company is exposed to the risk of actual experience turning out to be worse compared to the assumption.

Regulatory Risk: Gratuity benefit is paid in accordance with the requirements of the Payment of Gratuity Act, 1972 (as amended from time to time). There is a risk of change in regulations requiring higher gratuity payouts (for example, increase in the maximum liability on gratuity of '' 10 Lakhs).

Asset Liability Mismatching or Market Risk: The duration of the liability is longer compared to duration of assets exposing the company to market risks for volatilities/fall in interest rate.

Significant actuarial assumptions for the determination of the defined benefit obligation are discount rate, expected salary increase and mortality. The sensitivity analysis below have been determined based on reasonably possible changes of the assumptions occurring at the end of the reporting period, while holding all other assumptions constant.

21.1 Unsecured Inter - Corporate Deposit amounting to Rs. 1340.00 Lakhs ( March 31,2023: '' 1230.00 Lakhs) taken from different parties carries an average interest rate of 12% per annum which is repayable with in one year or demand.(March 31, 2023 : average interest rate of 12%). Since the company is undergoing CIRP process, moratorium is in effect due to which no interest has been booked post 18.07.2023. The Parties have filed their claim with the Resolution Professional and the list of creditors have been uploaded on the CD and IBBI website.

21.2 The Company has been sanctioned working capital limits in excess of 5 crores, in aggregate, at points of time during the year, from banks or financial institutions on the basis of security of current assets. The quarterly returns filed by the Company with such banks or financial institutions are in agreement with the books of account of the Company of the respective quarters.

22.1 Trade payable other than acceptances includes of Rs. 0.41 Lakhs dues to Micro and Small Enterprises, under the Micro, Small and Medium Enterprises Development Act, 2006.

Due to Micro and Small Enterprises have been determined to the extent such parties have been identified on the basis of information collected by the Management. This has been relied upon by the Auditors.

30.1. Defined contribution plans:

The Company provides benefits in the nature of defined contribution plans viz, employee state insurance scheme and provident fund for qualifying employees. Under these Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognised ''12.73 Lakhs (March 31,2023: ''12.12 Lakhs) towards contribution for mentioned funds in the Statement of Profit and Loss. The contributions payable to these plans by the Company are at rates specified in the rules of the Schemes.

35. Contingent Liabilities and Commitments

(i) Contingent Liability

a. Claims against the Company not acknowledged as debts:

Claims against the Company not acknowledged as debts include demands raised by Income Tax TDS authorities aggregating to Rs. 7,30,675/- and GST Department of Rs. 3,55,18,735/-.

b. Other Contingent Liabilities

i. Guarantees issued by bankers on behalf of the company towards performance obligations Rs. 514.15 Lakhs (March 31, 2023: Rs. 514.15 Lakhs).

ii. Corporate Guarantee of Rs. 32,500 Lakhs (March 31, 2023: Rs. 32,500 Lakhs) issued on behalf of wholly owned subsidiary company Manjeera Retail Holdings Private Limited.

37. Segment Reporting

Business Segments:

The Company has disclosed Business segment as the primary segment for reporting as defined in Ind AS 108 - Operating Segments, the Managing Director evaluates the Company''s performance and allocates resources based on an analysis of various performance indicators by business segments. Accordingly, information has been presented along these business segments viz, Real estate and Sub Contracted Contractual business. Details of standalone segment-wise revenue, results, assets and liabilities.

Geographical Segment:

The Company has operations in India only. The conditions prevailing in India being uniform, hence no separate geographical segment disclosure is considered necessary.

Notes to Financial Instruments

The management assessed that the fair value of cash and cash equivalents, trade receivables, loans, trade payables and other financial liabilities approximate the carrying amount largely due to short-term maturity of these instruments. The management assessed that the fair value of borrowings approximate the carrying amount largely due to such borrowings carry floating interest rates or rates are negotiable.

The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

39. Financial Risk Management

Financial Risk Factors

The Company''s activities expose it to market risk, liquidity risk and credit risk. The Company''s Board of Directors has overall responsibility for the establishment and oversight of the Company''s risk management framework. This note explains the sources of risk which the entity is exposed to and how the entity manages the risk and the related impact in the financial statements.

a. Credit Risk

Credit risk is the risk that a counterparty fails to discharge its obligation to the Company. The Company''s exposure to credit risk is influenced mainly by cash and cash equivalents, trade receivables and financial assets measured at amortized cost. The Company continuously monitors defaults of customers and other counterparties and incorporates this information into its credit risk controls. Credit risk related to cash and cash equivalents and bank deposits is managed by accepting highly rated banks and diversifying bank deposits.

Credit Risk Management

The finance function of the Company assesses and manages credit risk based on internal credit rating system. Internal credit rating is performed for each class of financial instruments with different characteristics.

Based on business environment in which the Company operates, a default on a financial asset is considered when the counterparty fails to make payments within the agreed time period as per contract. Loss rates reflecting defaults are based on actual credit loss experience and considering differences between current and historical economic conditions.

Assets are written off when there is no reasonable expectation of recovery, such as a debtor declaring bankruptcy or a litigation decided against the Company. The Company continues to engage with parties whose balances are written off and attempts to enforce repayment. Recoveries made are recognized in statement of profit and loss.

Expected Credit Loss for Trade Receivables under simplified approach

Real Estate Business

The Company''s trade receivables does not have any expected credit loss as registration of properties sold is generally carried out once the Company receives the entire payment. During the periods presented, the Company made no write-offs of trade receivables and no recoveries from receivables previously written off. But a general provision for Expected credit loss @ 0.4% has been provided.

b. Liquidity Risk

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due. Due to the nature of the business, the Company maintains flexibility in funding by maintaining availability under committed facilities.

Management monitors rolling forecasts of the Company''s liquidity position and cash and cash equivalents on the basis of expected cash flows. The Company takes into account the liquidity of the market in which the entity operates.

c. Interest Rate Risk

The Company''s fixed rate borrowings are carried at amortized cost. They are therefore not subject to interest rate risk as defined in Ind AS 107, ‘Financial Instruments - Disclosures'', since neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rates.

The Company''s variable rate borrowing is subject to interest rate. Below is the overall exposure of the borrowing:

Reason For % Change From Previous Year: There has been substantial decrease in the cost of Inventory sold and increase in the average trade payables during the current year compared to previous year resulting in a lower ratio.

(h) Net Capital Turnover Ratio

Net Capital Turnover Ratio - Revenue from Operations divided by Net Working Capital where Net Working Capital = Current Assets -Current Liabilities

41. Capital Management

The Company''s objectives when managing capital are to:

Safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders, and maintain an optimal capital structure to reduce the cost of capital.

In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.

The Company monitors its capital using gearing ratio, which is net debt divided by total equity. Net debt includes long term borrowings, short term borrowings, current maturities of long term borrowings less cash and cash equivalents and other bank balances.

42. Section 186 of the Companies Act 2013 is not applicable to the Company being the Company is in business of providing infrastructural facilities i. e real estate development business covered under point 5(a) of the Schedule VI of the Companies Act, 2013.

43. As per Section 135 of the Companies Act 2013, The provisions of CSR is not applicable to the company since it does not meet the Net worth, Turnover, Net profit criteria during last three years.

44. There are no proceedings initiated or are pending against the Company for holding any benami property under the Prohibition of Benami Property Transactions Act, 1988 and rules made thereunder.

45. The Company does not have any transactions with companies struck off under section 248 of Companies Act 2013 or Section 560 of Companies Act 1956 for the current year and also for the previous year.

46. The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

47. The Company has not been declared willful defaulter by any bank or government or any government authority. The Company is defaulted in repayment of loan to financial institution. The lenders has filed the application in NCLT, Hyderabad and accordingly CIRP as per section 7 of IBC has been initiated vide order dated 18.07.2023.

48. The Company have not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or;

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

49. The Company have not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or;

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries,

50. The Company does not have any transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

51. The Company has the borrowings from banks and financial institutions on the basis of the security of the current assets.

52. The Company has given a Corporate Guarantee to the lenders of a wholly owned Subsidiary Company for the loan of Rs.325 Crore sanctioned (disbursed Rs.274.80 Crore and outstanding as at 31st March 2023 was Rs. 200.15 Crore including interest arrears). As the Subsidiary Company could not meet its obligations with in the time frame for repayment, the lender has approached NCLT under the Insolvency and Bankruptcy provisions and accordingly made an application against the Subsidiary, the Principal Borrower and also against the Company which is the Corporate Guarantor for the loan. The CIRP process is in the final stage as Resolution Plan for the company is already filed by the Resolution Professional with the Hon''ble NCLT and awaiting final approval.

53. Inventory includes land admeasuring 2.92 Acres situated at Khanamet village, purchased from TSIIC through auction conducted in the previous year, which is offered as security against advance received against sale of said land from Manjeera Realty LLP (Formerly SAASA Villa LLP) for an amount of Rs. 17,514.87 Lakhs under registered "Agreement for Sale cum General Power of Attorney (with possession), dated April 27, 2022.

54. Recent accounting pronouncements

Ministry of Corporate Affairs (“MCA”) notifies new standard or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. On March 31, 2023, MCA amended the Companies (Indian Accounting Standards) Rules, 2015 by issuing the Companies (Indian Accounting Standards) Amendment Rules, 2023, applicable from April 1, 2023, as below:

Ind AS 1 - Presentation of Financial Statements

The amendments require companies to disclose their material accounting policies rather than their significant accounting policies. Accounting policy information, together with other information, is material when it can reasonably be expected to influence decisions of primary users of general purpose financial statements. The Company does not expect this amendment to have any significant impact in its financial statements.

Ind AS 12 - Income Taxes

The amendments clarify how companies account for deferred tax on transactions such as leases and decommissioning obligations. The amendments narrowed the scope of the recognition exemption in paragraphs 15 and 24 of Ind AS 12 (recognition exemption) so that it no longer applies to transactions that, on initial recognition, give rise to equal taxable and deductible temporary differences. The Company is evaluating the impact, if any, in its financial statements.

Ind AS 8 - Accounting Policies, Changes in Accounting Estimates and Errors

The amendments will help entities to distinguish between accounting policies and accounting estimates. The definition of a change in accounting estimates has been replaced with a definition of accounting estimates. Under the new definition, accounting estimates are “monetary amounts in financial statements that are subject to measurement uncertainty”. Entities develop accounting estimates if accounting policies require items in financial statements to be measured in a way that involves measurement uncertainty. The Company does not expect this amendment to have any significant impact in its financial statements.

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Mar 31, 2023

2.2.14 Provisions, Contingent Liabilities and Contingent Assets:

The Company recognises provisions when there is present obligation as a result of past event and it is probable that there
will be an outflow of resources and reliable estimate can be made of the amount of the obligation. A disclosure for Contingent
liabilities is made in the notes on accounts when there is a possible obligation or a present obligation that may, but probably
will not, require an outflow of resources. Contingent assets are disclosed in the financial statements when flow of economic
benefit is probable.

2.2.15 Financial Instruments:

Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of
the instrument.

Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the
acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value
through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate,
oninitial 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.

2.2.15. a Financial Assets

Financial asset is

1. Cash / Equity Instrument of another Entity,

2. Contractual right to -

a) receive Cash / another Financial Asset from another Entity, or

b) exchange Financial Assets or Financial Liabilities with another Entity under conditions that are potentially
favorable to the Entity.

Subsequent measurement of the Financial Assets

(i) Financial Assets carried at Amortised Cost

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

(ii) Financial Assets at fair value through Other Comprehensive Income

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

(iii) Financial Assets at Fair Value through Profit or Loss

A financial asset which is not classified in any of the above categories are subsequently fair valued through
profit or loss.

(iv) The Company recognizes loss allowances using the expected credit loss (ECL) 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 the 12-month ECL, unless there has been 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 to be recognised is recognized as an impairment gain or loss in statement of profit or
loss.

2.2.15. b Financial Liabilities

Financial liability is
Contractual Obligation to

a) deliver Cash or another Financial Asset to another Entity, or

b) exchange Financial Assets or Financial Liabilities with another Entity under conditions that are potentially unfavorable

to the Entity.

Subsequent measurement of the Financial Liabilities

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.

Derecognition of Financial Instruments

The Company derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire
or it transfers the financial asset and the transfer qualifies for derecognition under Ind AS 109. A financial liability (or a part
of a financial liability) is derecognized from the Company''s balance sheet when the obligation specified in the contract is
discharged or cancelled or expires.

2.2.16 Cash Flow Statement:

Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for
the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments.
The cash flows from operating, investing and financing activities of the Company are segregated based on the available
information.

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term balances (with an original
maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible into known
amounts of cash and which are subject to insignificant risk of changes in value.

2.2.17 Exceptional Items:

Exceptional Items represents the nature of transactions which are not in recurring nature during the ordinary course of business
but lead to increase / decrease in profit / loss for the year.

16.4 Rights of the share Holders

The Company has only one class of shares. Equity shares having a par value ofRs. 10/-. Each holder of equity shares is entitled to one
vote per share. All the equity shares rank pari passu in all respects including but not limited to entitlement for dividend, bonus issue and
rights issue.

The Company declares and pays dividends inIndian Rupees. The dividend proposed by the Board of Directors, if any, is subject to the
approval of the shareholders in the ensuing general meeting.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company in
proportion of their shareholding.

18.1 Equitable Mortgage on land & Buildings of Developer share of Manjeera Monarch Project and Unit number 304 A in Aditya Trade Centre
(F&G Blocks) & Open Exhibition area in ground floor and unit number 4,5,6,7 & 8 in Mezzanine floor belongs to Manjeera Estates Pvt
Limited and G Yoganand in aditya Trade Centre (F&G Blocks). Present interest rate at 16.05% on monthly basis. Term loan is repayable
in 30 monthly equal installment starting from January, 2020.

18.2 Term loan taken from other banks includes LICHFL-ECLGS loan amounting to Rs. 955.8 Lakhs which carries interest of 14% per annum
and repayable in 48 equated monthly instalments.

18.3 Vehicles loan amounting to Rs. 12.41 Lakhs (March 31, 2022: Rs. 22.20 Lakhs) is secured by hypothecation of vehicles purchased.

18.4 Unsecured loans taken from related parties carries interest of 12% per annum compounded on annual basis and are repayable on
demand.

18.5 Inter corporate deposits from others carries average interest of 12% per annum compounded on quarterly basis and are repayable on
demand.

B. Defined Contribution Plan

The Company provides benefits in the nature of defined contribution plans viz, employee state insurance scheme and provident fund
for qualifying employees. Under these Schemes, the Company is required to contribute a specified percentage of the payroll costs to
fund the benefits. The Company recognised '' 12.12 Lakhs (March 31,2022: '' 10.43 Lakhs) towards contribution for mentioned funds
in the Statement of Profit and Loss. The contributions payable to these plans by the Company are at rates specified in the rules of the
Schemes.

C. Sensitivity Analysis
Description of Risk Exposures

Valuations are performed on certain basic set of pre-determined assumptions which may vary over time. Thus, the Company is
exposed to various risks in providing the above benefit which are as follows:

Interest Rate Risk: The plan exposes the Company to the risk of fall in interest rates. A fall in interest rates will result in an increase

in the ultimate cost of providing the above benefit and will thus result in an increase in the value of liability (as shown in financial
statements).

Liquidity Risk: This is the risk that the Company is not able to meet the short term benefit payouts. This may arise due to non
availability of enough cash/cash equivalent to meet the liabilities or holding of illiquid assets not being sold in time.

Salary Escalation Risk: The present value of the above benefit plan is calculated with the assumption of salary increase rate of plan
participants in future. Deviation in the rate of increase in salary in future for plan participants from the rate of increase in salary used
to determine the present value of obligation will have a bearing on the plan''s liability.

Demographic Risk: The company has used certain mortality and attrition assumptions in valuation of the liability. The Company is
exposed to the risk of actual experience turning out to be worse compared to the assumption.

Regulatory Risk: Gratuity benefit is paid in accordance with the requirements of the Payment of Gratuity Act, 1972 (as amended from
time to time). There is a risk of change in regulations requiring higher gratuity payouts (for example, increase in the maximum liability
on gratuity of '' 10 Lakhs).

Asset Liability Mismatching or Market Risk: The duration of the liability is longer compared to duration of assets exposing the
company to market risks for volatilities/fall in interest rate.

Significant actuarial assumptions for the determination of the defined benefit obligation are discount rate, expected salary increase and
mortality. The sensitivity analysis below have been determined based on reasonably possible changes of the assumptions occurring
at the end of the reporting period, while holding all other assumptions constant.

21.1 Cash Credit is secured by hypothecation of current assets of construction contract business division (excluding assets of real estate
division). Margin 25%. Rate of interest - Bench Mark 1 year MCLR of bank plus spread of 2.5% chargeable on monthly)

21.2 Unsecured Inter - Corporate Deposit amounting to '' 1230.00 Lakhs ( March 31, 2022: '' 180.00 Lakhs) taken from different parties
carries an average interest rate of 12% per annum which is repayable with in one year or demand.(March 31, 2022 : average interest
rate of 12%).

21.3 The Company has been sanctioned working capital limits in excess of 5 crores, in aggregate, at points of time during the year, from
banks or financial institutions on the basis of security of current assets. The quarterly returns filed by the Company with such banks
or financial institutions are in agreement with the books of account of the Company of the respective quarters.

33. contingent Liamnties and commitments

(i) Contingent Liability

a. Claims against the Company not acknowledged as debts:

Claims against the Company not acknowledged as debts include demands raised by Income Tax authorities aggregating to Rs.
Nil(Previous year Rs. Nil).

b. Other Contingent Liabilities

i. Guarantees issued by bankers on behalf of the company towards performance obligations Rs. 514.15 Lakhs (March
31, 2022: Rs. 514.15 Lakhs).

ii. Corporate Guarantee of Rs. 32,500 Lakhs (March 31, 2022: Rs. 32,500 Lakhs) issued on behalf of wholly owned
subsidiary company Manjeera Retail Holdings Private Limited.

Notes to Financial Instruments

The management assessed that the fair value of cash and cash equivalents, trade receivables, loans,trade payables and other financial liabilities
approximate the carrying amount largely due to short-term maturity of these instruments. The management assessed that the fair value of
borrowings approximate the carrying amount largely due to such borrowings carry floating interest rates or rates are negotiable.

The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction
between willing parties, other than in a forced or liquidation sale.

38. Financial Risk Management

Financial Risk Factors

The Company''s activities expose it to market risk, liquidity risk and credit risk. The Company''s Board of Directors has overall responsibility
for the establishment and oversight of the Company''s risk management framework. This note explains the sources of risk which the entity is
exposed to and how the entity manages the risk and the related impact in the financial statements.

a. Credit Risk

Credit risk is the risk that a counterparty fails to discharge its obligation to the Company. The Company''s exposure to credit risk is
influenced mainly by cash and cash equivalents, trade receivables and financial assets measured at amortized cost. The Company
continuously monitors defaults of customers and other counterparties and incorporates this information into its credit risk controls.
Credit risk related to cash and cash equivalents and bank deposits is managed by accepting highly rated banks and diversifying bank
deposits.

Credit Risk Management

The finance function of the Company assesses and manages credit risk based on internal credit rating system. Internal credit rating is
performed for each class of financial instruments with different characteristics.

Based on business environment in which the Company operates, a default on a financial asset is considered when the counterparty
fails to make payments within the agreed time period as per contract. Loss rates reflecting defaults are based on actual credit loss
experience and considering differences between current and historical economic conditions.

Assets are written off when there is no reasonable expectation of recovery, such as a debtor declaring bankruptcy or a litigation
decided against the Company. The Company continues to engage with parties whose balances are written off and attempts to enforce
repayment. Recoveries made are recognized in statement of profit and loss.

Expected Credit Loss for Trade Receivables under simplified approach
Real Estate Business

The Company''s trade receivables does not have any expected credit loss as registration of properties sold is generally carried out once
the Company receives the entire payment. During the periods presented, the Company made no write-offs of trade receivables and no
recoveries from receivables previously written off. But a general provision for Expected credit loss @ 0.4% has been provided.

b. Liquidity Risk

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through
an adequate amount of committed credit facilities to meet obligations when due. Due to the nature of the business, the Company
maintains flexibility in funding by maintaining availability under committed facilities.

Management monitors rolling forecasts of the Company''s liquidity position and cash and cash equivalents on the basis of expected
cash flows. The Company takes into account the liquidity of the market in which the entity operates.

Maturities of Financial Liabilities

The below tables analyze the Company''s financial liabilities into relevant maturity groupings based on their contractual maturities for
all financial liabilities. The amounts disclosed in the table are the contractual undiscounted cash flows.

40. Capital Management

The Company''s objectives when managing capital are to:

Safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other
stakeholders, and maintain an optimal capital structure to reduce the cost of capital.

In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to
shareholders, issue new shares or sell assets to reduce debt.

The Company monitors its capital using gearing ratio, which is net debt divided by total equity. Net debt includes long term borrowings, short
term borrowings, current maturities of long term borrowings less cash and cash equivalents and other bank balances.

41. Section 186 of the Companies Act 2013 is not applicable to the Company being the Company is in business of providing infrastructural
facilities i. e real estate development business covered under point 5(a) of the Schedule VI of the Companies Act, 2013.

42. As per Section 135 of the Companies Act 2013, The provisions of CSR is not applicable to the company since it does not meet the Net
worth, Turnover, Net profit criteria during last three years.

43. There are no proceedings initiated or are pending against the Company for holding any benami property under the Prohibition of
Benami Property Transactions Act, 1988 and rules made thereunder.

44. The Company does not have any transactions with companies struck off under section 248 of Companies Act 2013 or Section 560 of
Companies Act 1956 for the current year and also for the previous year.

45. The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

46. The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.

47. The Company have not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities
(Intermediaries) with the understanding that the Intermediary shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the
company (Ultimate Beneficiaries) or;

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

48. The Company have not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the
understanding (whether recorded in writing or otherwise) that the Company shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the
Funding Party (Ultimate Beneficiaries) or;

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries,

49. The Company does not have any transaction which is not recorded in the books of accounts that has been surrendered or disclosed
as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant
provisions of the Income Tax Act, 1961).

50. The Company has the borrowings from banks and financial institutions on the basis of the security of the current assets.

(a) The quarterly returns or statements of the current assets filed by the company with the banks or financial institution are in
agreement with the books of account.

51. The Company has given a Corporate Guarantee to the lenders of a wholly owned Subsidiary Company for the loan of Rs.325 Crore
sanctioned (disbursed Rs.274.80 Crore and outstanding as at 31st March 2023was Rs. 200.15 Crore including interest arrears). As
the Subsidiary Company could not meet its obligations with in the time frame for repayment, the lender has approached NCLT under
the Insolvency and Bankruptcy provisions and accordingly made an application against the Subsidiary, the Principal Borrower and also
against the Company which is the Corporate Guarantor for the loan. Both the Companies are contesting the case instituted and efforts
are on to arrive at a payment settlement. As at the year end, the petition by lender is pending admission by the NCLT.

52. Inventory includes land admeasuring 2.92 Acres situated at Khanamet village, purchased from TSIIC through auction conducted in
the previous year, which is offered as security against advance received against sale of said land from Manjeera Realty LLP (Formerly
SAASA Villa LLP) for an amount of Rs. 17,514.87 Lakhs under registered “Agreement for Sale cum General Power of Attorney (with
possession), dated April 27, 2022.

53. Recent accounting pronouncements

Ministry of Corporate Affairs (“MCA”) notifies new standard or amendments to the existing standards under Companies (Indian
Accounting Standards) Rules as issued from time to time. On March 31, 2023, MCA amended the Companies (Indian Accounting
Standards) Rules, 2015 by issuing the Companies (Indian Accounting Standards) Amendment Rules, 2023, applicable from April 1,
2023, as below:

Ind AS 1 - Presentation of Financial Statements

The amendments require companies to disclose their material accounting policies rather than their significant accounting policies.
Accounting policy information, together with other information, is material when it can reasonably be expected to influence decisions
of primary users of general purpose financial statements. The Company does not expect this amendment to have any significant impact
in its financial statements.

Ind AS 12 - Income Taxes

The amendments clarify how companies account for deferred tax on transactions such as leases and decommissioning obligations.
The amendments narrowed the scope of the recognition exemption in paragraphs 15 and 24 of Ind AS 12 (recognition exemption) so
that it no longer applies to transactions that, on initial recognition, give rise to equal taxable and deductible temporary differences. The
Company is evaluating the impact, if any, in its financial statements.

Ind AS 8 - Accounting Policies, Changes in Accounting Estimates and Errors

The amendments will help entities to distinguish between accounting policies and accounting estimates. The definition of a change
in accounting estimates has been replaced with a definition of accounting estimates. Under the new definition, accounting estimates
are “monetary amounts in financial statements that are subject to measurement uncertainty”. Entities develop accounting estimates
if accounting policies require items in financial statements to be measured in a way that involves measurement uncertainty. The
Company does not expect this amendment to have any significant impact in its financial statements.

As per our report of even date attached

M. Bhaskar Rao & Co For and on behalf of the Board of Directors of

CHARTERED ACCOUNTANTS MANJEERA CONSTRUCTIONS LIMITED

Firm Registration No : 000459S

P Swathi G Yoganand K Krishna Murthy

Partner Managing Director Director

Membership No. 513946 DIN: 00850735 DIN: 01466390

Sudhir Kilaru Narsimha Anjaiya Mettu

CFO Company Secretary

Hyderabad, May 30, 2023 M. No. ACS 54840

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Mar 31, 2018

1 Corporate Information

Manjeera Constructions Limited is a company registered in India under the companies act,1956, having its registered office at 711, Manjeera Trinity Corporate, JNTU and Hitech City Road, KPHB Colony, Hyderabad - 520072 is in the business of property development, civil construction contracts, infrastructure projects development and Windmill Energy Production.

Fair value of the investment property

The fair value of the investment properties as at March 31,2018, March 31,2017 and April 1,2016 have been arrived at on the basis of a valuation carried out as on the respective dates. The fair value was derived using the market comparable approach based on recent market prices without any significant adjustments being made to the market observable data.

2.1. The credit period towards trade receivables generally ranges between 30 to 180 days. Generally, no interest is recovered for payments received beyond due date.

2.2 In determining the allowance for trade receivables the company has used practical expedients based on financial condition of the customer, ageing of the customer receivables and overdues, availability of collaterals and historical experience of collections from customers. The concentration of risk with respect to trade receivables is reasonably low as most of the customers settle within the due dates, though there may be normal delays in collections.

The Company''s past history in dues becoming bad or doubtful was very insignificant

2.3 Rights of the share holders

The Company has only one class of shares- Equity shares having a par value of ''10/-. Each holder of equity shares is entitled to one vote per share. All the equity shares rank pari passu in all respects including bu not limited to entitlement for dividend, bonus issueand rights issue.

The Company declares and pays dividens in a Indian Rupees. The dividend proposed by the Board of Directors, if any, is subject to the approval of the shareholders in the ensuing general meeting.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company in proportion of their shareholding.

3.1 Term loan amounting to Rs. 520.11 lakhs (March 31, 2017: Rs. 600 lakhs) is secured by exclusive hypothecation charge on construction materials and work in progress. Equitable mortgage of total land area of Ac. 5.01 Gunts with proposed construction of 23 villas with total build up area of 78335.71 sq. feet belonging to Sri G. Yoganand, Managing Director and Manjeera Estates Private Limited including land measuring 6998.37 sq. yards covering above villas out of total area of Ac. 5.01 Gts besides assignment of development right over the entire project. Present interest at 13.6% on monthly basis. Term loan repayble in eight quarterly equal installments starting from June 30, 2018. The loan is further personally guaranteed by Sri G. Yoganand, Managing Director.

3.2 Security for loan from LIC Housing Limited: Equitable Mortagage on land & Buildings of Total Manjeera Monarch Project and Unit number 304 A in Aditya Trade Centre (F&G Blocks) & Open Exhibition area in ground floor and unit number 4,5,6,7 & 8 belongs to Manjeera Estates Pvt Limited and G Yoganand in aditya Trade Centre(F&G Blocks).

3.3 Vehicles loan amounting to Rs. 20.88 Lakhs (March 31, 2017: Rs. 26.68 Lakhs) is secured by hypothecation of vehicles purchased.

4.1 A. Defined benefit plan

The Company provides for gratuity for employees as per the Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of 5 years are eligible for gratuity at the rate of 15 days basic salary for each year of service until the retirement age. As at March 31, 2018 and March 31, 2017 the plan assets were invested in insurer managed funds.

B. Defined contribution plan

The Company provides benefits in the nature of defined contribution plans viz, employee state insurance scheme, provident fund and superannuation fund for qualifying employees. Under these Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognised Rs. 8.56 Lakhs (March 31, 2017: Rs. 7.26 Lakhs) towards contribution for mentioned funds in the Statement of Profit and Loss. The contributions payable to these plans by the Company are at rates specified in the rules of the Schemes.

C. Sensitivity analysis Description of Risk Exposures

Valuations are performed on certain basic set of pre-determined assumptions which may vary over time. Thus, the Company is exposed to various risks in providing the above benefit which are as follows:

Interest Rate Risk: The plan exposes the Company to the risk of fall in interest rates. A fall in interest rates will result in an increase in the ultimate cost of providing the above benefit and will thus result in an increase in the value of liability (as shown in financial statements).

Liquidity Risk: This is the risk that the Company is not able to meet the short term benefit payouts. This may arise due to non availability of enough cash/cash equivalent to meet the liabilities or holding of illiquid assets not being sold in time.

Salary Escalation Risk: The present value of the above benefit plan is calculated with the assumption of salary increase rate of plan participants in future. Deviation in the rate of increase in salary in future for plan participants from the rate of increase in salary used to determine the present value of obligation will have a bearing on the plan''s liability.

Demographic Risk: The company has used certain mortality and attrition assumptions in valuation of the liability. The Company is exposed to the risk of actual experience turning out to be worse compared to the assumption.

Regulatory Risk: Gratuity benefit is paid in accordance with the requirements of the Payment of Gratuity Act, 1972 (as amended from time to time). There is a risk of change in regulations requiring higher gratuity payouts (for example, increase in the maximum liability on gratuity of '' 10 Lakhs).

Asset Liability Mismatching or Market Risk: The duration of the liability is longer compared to duration of assets exposing the company to market risks for volatilities/fall in interest rate.

Significant actuarial assumptions for the determination of the defined benefit obligation are discount rate, expected salary increase and mortality. The sensitivity analysis below have been determined based on reasonably possible changes of the assumptions occurring at the end of the reporting period, while holding all other assumptions constant.

5.1 Cash Credit is secured by hypothecation of current assets of construction contract business division (excluding assets of real estate division). Margin 25%. Rate of interest - Bench Mark 1 year MCLR of bank plus spread of 2.5% chargeable on monthly test)

5.2 Domestic purchase bill factoring is secured by collateral security with minimum asset cover of 2.5 times of the entire facility of Rs. 750.00 Lakhs by pledge of shares of promoters of Company and partly by equitable mortage of Commercial Property owned by Manjeera Estates Private Limited. Personal Gurantee of G. Yoganand, Managing Director and corporate guaratee of Gajjala Investment and Holding s Private limited and Manjeera Estates Private Limited.

5.3 Unsecured loans taken from related parties carries interest of 18% per annum compounded on quarterly basis and are repayable on demand.

5.4 Unsecured inter-corporate deposit amounting to Rs. 23.66 Lakhs (March 31, 2017: Rs. 9.25 Lakhs) taken from differenet Parties carries an average interest rate of 15% p.a (March 31, 2017: average interest rate of 17%)

6.1 Trade payable other than acceptances do not include any dues to Micro and Small Enterprises, under the Micro, Small and Medium Enterprises Development Act, 2006.

Due to Micro and Small Enterprises have been determined to the extent such parties have been identified on the basis of information collected by the Management. This has been relied upon by the Auditors.

7.1 Defined contribution plans

The Company made Provident Fund contributions to defined contribution plans for qualifying employees. Under the Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognised Rs. 8.56 Lakhs (March 31, 2017: Rs. 7.25 Lakhs) for Provident Fund contributions in the Statement of Profit and Loss. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

8 Contingent Liabilities and Commitments

(i) Contingent Liability

a. Claims against the Company not acknowledged as debts:

Claims against the Company not acknowledged as debts include demands raised by Income Tax authorities aggregating to Rs. 0.00 (Previous year Rs. 464.30 lakhs).

Other Contingent Liabilities

Guarantees issued by bankers on behalf of the company towards performance obligations '' 158.24 Lakhs (Previous year Rs. 613.93 lakhs).

Corporate Guarantee of Rs. 30,000 lakhs (Previous year Rs. 30,000 lakhs) issued on behalf of subsidiary company Manjeera Retail Holdings Private Limited.

Notes to financial instruments

The management assessed that the fair value of cash and cash equivalents, trade receivables, loans, trade payables and other financial liabilities approximate the carrying amount largely due to short-term maturity of these instruments. The management assessed that the fair value of borrowings approximate the carrying amount largely due to such borrowings carry floating interest rates or rates are negotiable.

The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

9 Financial risk management

Financial risk factors

The Company''s activities expose it to market risk, liquidity risk and credit risk. The Company''s Board of Directors has overall responsibility for the establishment and oversight of the Company''s risk management framework. This note explains the sources of risk which the entity is exposed to and how the entity manages the risk and the related impact in the financial statements.

a. Credit risk

Credit risk is the risk that a counterparty fails to discharge its obligation to the Company. The Company''s exposure to credit risk is influenced mainly by cash and cash equivalents, trade receivables and financial assets measured at amortized cost. The Company continuously monitors defaults of customers and other counterparties and incorporates this information into its credit risk controls. Credit risk related to cash and cash equivalents and bank deposits is managed by accepting highly rated banks and diversifying bank deposits.

Credit risk management

The finance function of the Company assesses and manages credit risk based on internal credit rating system. Internal credit rating is performed for each class of financial instruments with different characteristics.

Based on business environment in which the Company operates, a default on a financial asset is considered when the counterparty fails to make payments within the agreed time period as per contract. Loss rates reflecting defaults are based on actual credit loss experience and considering differences between current and historical economic conditions.

Assets are written off when there is no reasonable expectation of recovery, such as a debtor declaring bankruptcy or a litigation decided against the Company. The Company continues to engage with parties whose balances are written off and attempts to enforce repayment. Recoveries made are recognized in statement of profit and loss.

Expected credit loss for trade receivables under simplified approach Real estate business

The Company''s trade receivables does not have any expected credit loss as registry of properties sold is generally carried out once the Company receives the entire payment. During the periods presented, the Company made no write-offs of trade receivables and no recoveries from receivables previously written off. But a general provision for Expected credit loss @ 0.4% has been provided

b. Liquidity risk

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due. Due to the nature of the business, the Company maintains flexibility in funding by maintaining availability under committed facilities.

Management monitors rolling forecasts of the Company''s liquidity position and cash and cash equivalents on the basis of expected cash flows. The Company takes into account the liquidity of the market in which the entity operates.

c. Interest rate risk

The Company''s fixed rate borrowings are carried at amortized cost. They are therefore not subject to interest rate risk as defined in Ind AS 107, ''Financial Instruments - Disclosures'', since neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rates.

10 Capital Management

The Company''s objectives when managing capital are to:

Safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders, and maintain an optimal capital structure to reduce the cost of capital.

In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.

The Company monitors its capital using gearing ratio, which is net debt divided by total equity. Net debt includes long term borrowings, short term borrowings, current maturities of long term borrowings less cash and cash equivalents and other bank balances.

11 First time adoption of Ind AS

These are the Company''s first financial statements prepared in accordance with Ind AS.

The accounting policies set out in note 1 have been applied in preparing the financial statements for the year ended 31 March 2018, the comparative information presented in these financial statements for the year ended 31 March 2017 and in the preparation of an opening Ind AS balance sheet at 1 April 2016 (the Company''s date of transition).

An explanation of how the transition from previous GAAP to Ind AS has affected the Company''s financial position, financial performance and cash flows is set out in the following tables and notes.

A Ind AS optional exemptions

Ind-AS 101, ''First-time Adoption of Indian Accounting Standards'', allows first-time adopters certain exemptions from the retrospective application of certain requirements under Ind-AS. The Company has accordingly applied the following exemptions.

1 Deemed cost for Property, Plant and Equipment, Intangible Assets and Investment Property

Ind AS 101 ''First-time Adoption of Indian Accounting Standards'' permits a first-time adopter to elect to measure an item of property plant and equipment at the date of transition to IndAS at it''s fair value or continue with the carrying value for all of its property, plant and equipment as recognized in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition. This exemption can also be used for intangible assets covered by Ind AS 38, ''Intangible Assets'' and for investment property covered by Ind AS 40, ''Investment Properties''. Accordingly, the Company has elected to measure all of its property, plant and equipment, and intangible assets at their previous GAAP carrying value and to measure Investment Property at fair value on the date of transition to IndAS.

B Ind AS mandatory exceptions

1 Estimates

An entity''s estimates in accordance with Ind ASs at the date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error.

2 Classification and measurement of financial assets and liabilities

Classification of financial asset is required to be made on the basis of the facts and circumstances that exist at the date of transition to Ind AS. Further, it is impractible for the Company to apply retrospectively the effective interest method in Ind AS 109, the fair value of the financial asset or the financial liability at the date of transition to Ind AS shall be the new gross carrying amount of that financial asset or the new amortised cost of that financial liability at the date of transition to Ind AS.

3 De-recognition of financial assets and liabilities

Ind AS 101, ''First-time Adoption of Indian Accounting Standards'' requires a first-time adopter to apply the de-recognition provisions of Ind AS 109,''Financial Instruments'' prospectively for transactions occurring on or after the date of transition to Ind AS. However, Ind AS 101, ''First-time Adoption of Indian Accounting Standards'' allows a first-time adopter to apply the derecognition requirements in Ind AS 109,''Financial Instruments'' retrospectively from a date of the entity''s choosing, provided that the information needed to apply Ind AS 109,''Financial Instruments'' to financial assets and financial liabilities derecognized as a result of past transactions was obtained at the time of initially accounting for those transactions. The Company has elected to apply the de-recognition provisions of Ind AS 109,''Financial Instruments'' prospectively from the date of transition to Ind AS.

C Reconciliations between previous GAAP and Ind AS

Ind AS 101, ''First-time Adoption of Indian Accounting Standards'' requires an entity to reconcile equity, total comprehensive income and cash flows for prior years. The following tables represent the reconciliations from previous GAAP to Ind AS.

Notes to first time adoption:

i To comply with the Companies (Accounting Standard) Rules, 2006, certain account balances have been regrouped as per the format prescribed under Division II of Schedule III to the Companies Act, 2013.

ii Financial instruments at amortised cost

(a) Financial liabilities at amortised cost

Under previous GAAP financial liabilities were initially recognized at transaction price. Subsequently, any finance costs was recognized based on contractual terms. Under Ind AS, such financial instruments are initially recognized at fair value and subsequently carried at amortised cost determined using the effective interest rate. Any difference between transaction price and fair value affects profit and loss unless it quantifies for recognition as some other type of liability.

(b) Financial assets at amortised cost

Under previous GAAP financial assets were initially recognized at transaction price. Subsequently, any finance income was recognized based on contractual terms. Under Ind AS, such financial instruments are initially recognized at fair value and subsequently carried at amortised cost determined using the effective interest rate. Any difference between transaction price and fair value affects profit and loss unless it qualifies for recognition as some other type of asset.

iii Defined benefit liabilities:

Both under previous GAAP and Ind AS, the company recognized costs related to its post-employment defined benefit plan on an actuarial basis. Under previous GAAP the entire cost, including actuarial gains and losses, are charged to the statement of profit or loss. Under Ind AS, re-measurements comprising of actuarial gains and losses are recognized immediately in the balance sheet with a corresponding debit or credit to retained earnings through OCI. Thus, the employee benefit cost is reduced by such amount with a corresponding adjustment on defined benefit plans has been recognized in the OCI.

iv Other comprehensive income

Under Ind AS, all items of income and expense recognized in a period should be included in profit or loss for the period, unless a standard requires or permits otherwise. Items of income and expense that are not recognized in profit or loss but are shown in the statement of profit and loss as ‘other comprehensive income'' includes re-measurements of defined benefit plans, foreign exchange differences arising on translation of foreign operations, effective portion of gains and losses on cash flow hedging instruments and fair value gains or (losses) on FVOCI equity instruments. The concept of other comprehensive income did not exist under previous GAAP There is no impact on the total equity or profit as a result of this adjustment.

v Retained earnings

Retained earnings as at 1 April 2016 and 31 March 2017 has been adjusted consequent to the above Ind AS transition adjustments.

vi Investment property

Under the previous GAAP investment properties were presented as part of property, plant and equipment. Under Ind AS, investment properties are required to be seperately presented on the face of the balance sheet. The fair value as on the date of transition is considered as the deemed cost and the same is effected to retained earnings.

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Mar 31, 2016

1. Capital commitment and contingent liabilities

2. Contingent liabilities

3. Claims against the Company not acknowledged as debts include demands raised by Income Tax authorities aggregating to Rs.4,64,30,513 (Previous year Rs.4,53,50,373). No provision has been made in the accounts for these demands as the Company expects a favorable decision in appeal.

4. Bank Guarantees on account of contractors not provided for Rs.30,82,90,454 (previous year Rs.29,09,81,600).

5. Commitments: NIL

6. Micro, Small and Medium enterprises

The identification of Micro, Small and Medium Enterprise suppliers as defined under the provisions of "The Micro, Small and Medium Enterprises Development Act, 2006" is based on Management''s knowledge of their status.

The Company has not received any memorandum (as required to be filed by the suppliers with the notified authority under the Micro, Small and Medium Enterprises Development Act, 2006) claiming their status as Micro, Small or Medium Enterprises. Consequently the amount paid / payable to these parties during the year and previous year is Nil.

7. Employee benefits

Defined Contribution plans

The Company makes Provident Fund and Employee State Insurance scheme contributions to the relevant authorities, which are defined contribution plans for qualifying employees. Under the Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company has recognized Rs.10,28,200 (Previous year Rs.11,23,694 for Provident Fund contributions and Rs.1,20,474 (Previous year Rs.1,74,701) for Employee State Insurance in the Statement of Profit and Loss.

The following table set out the unfunded status of the retirement benefits plans and the amount recognized in the financial statements:

Notes:

8. The discount rate is based on the prevailing market yield of Indian Government Securities as at the balance sheet date for the estimated term of obligations.

9. The estimates of future salary increases considered takes into account the inflation, seniority, promotion and other relevant factors.

10. Segment reporting

The Company''s operations fall within a single business segment "Development and sale of residential" and single geographical segment and therefore segment information as required under AS-17 is not applicable.

11. Related Party Disclosures

As per Accounting Standard 18, the disclosures of transactions with the related parties are:

12. List of related parties and nature of the relationship:

13. Previous year''s figures have been re-grouped/re-classified wherever necessary to correspond with the / disclosure.

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Mar 31, 2015

1. Corporate Information:

Manjeera Constructions Limited is mainly engaged in property development, civil construction contracts and infrastructure projects development.

2. Additional Notes to the Financial Statements

a. Depreciation:

Depreciation for the year is provided as per Schedule II of the Companies Act, 2013 (the Act). Accordingly Rs.1,027,115 being the remaining carrying amount of the assets whose remaining life in NIL are recognized in the opening balance of retained earnings and Rs.3,694,358 is charged to revenue as depreciation for the year. Hence, depreciation for the year is not directly comparable with previous year.

b. Capital commitment and contingent liabilities Contingent liabilities

(i) Claims against the Company not acknowledged as debts include demands raised by Commercial Taxes Department towards VAT for the years 2008-09, 2009-10 and 2010-11 aggregating to Rs.127,493,962 (Previous year Rs.127,493,962). No provision has been made in the accounts for these demands as the Company expects a favorable decision in High Court.

(ii) Bank Guarantees on account of contractors not provided for Rs.210,981,600 (previous year Rs.165,795,000).

c. Micro, Small and Medium enterprises

The identification of Micro, Small and Medium Enterprises suppliers as defined under the provisions of "The Micro, Small and Medium Enterprises Development Act, 2006" is based on Management's knowledge of their status.

The Company has not received any memorandum (as required to be filed by the suppliers with the notified authority under the Micro, Small and Medium Enterprises Development Act, 2006) claiming their status as Micro, Small or Medium Enterprises. Consequently the amount paid / payable to these parties during the year and the previous year is Nil.

D. Employee benefits:

Defined Benefit Plan

The employees' gratuity is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognises each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for Compensated Absences is recognised in the same manner as gratuity.

Defined Contribution plan

The Company makes Provident Fund and Employee State Insurance contributions which are defined contribution plans for qualifying employees. The Company has recognised Rs.1,123,694 (Previous year Rs.1,452,692 for Provident Fund contributions and Rs.1 74,701 (Previous year Rs.214,721) for Employee State Insurance in the Statement of Profit and Loss.

E. Related party Disclosures

i) Related parties and their relationships

Name of the entity Nature of relationship

1 Manjeera Retail Holdings Private Limited Subsidiary

2 MTM Estate Properities Private Limited. Subsidiary

3 GM Infra Ventures Private Limited Associate

4 G.Yoganand - Managing Director Key Management Person

5 K.Krishna Murty - Director Key Management Person

6 DLS Sreshti - Independent Director Key Management Person

7 G.Vivekanand - Director Key Management Person (upto14.08.2014)

8 G.PADMAJA Key Management Person (w.e.f 14.08.2014)

9 Manjeera Estates Private Limited Entity under significant influence of KMP

10 Manjeera Hotels & Resorts Private Entity under significant influence of KMP

11 Gajjala Investments & Holdings Private Entity under significant Limited influence of KMP

12 Aashraya Hotels And Estates Private Entity under significant Limited influence of KMP

13 MTM Estates And Properties Private Entity under significant Limited influence of KMP

14 Manjeera Projects Entity under significant influence of KMP

Note: Related parties have been identified by the management of the Company.

F. Disclosures as per clause 32 of the Listing agreement with stock exchange

Loans and advances in the nature of loan given Manjeera Retail Holdings Private Limited - Subsidiary company GM Infra ventures private Limited - Associate Manjeera Hotels & Resorts Private Limited - Associates

G. Segment reporting

The Company's operations fall within a single business segment "Production of program and broadcasting satellite television" and single geographical segment and therefore segment information as required under AS - 17 is not applicable.

H. Previous year comparatives

Previous year's figures have been re-grouped/re-classified wherever necessary to correspond with the current year's classification/ disclosure.

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Mar 31, 2014

1. Corporate information

Manjeera Constructions Limited is mainly engaged in property development, civil construction contracts and infrastructure projects development.

2. Contingent liabilities (Figures are in Rs. Lac unless otherwise stated)

As at As at 31-03-2014 31-03-2013

i. Direct and Indirect taxes claims disputed by the company to issues of applicability 1274.94 18.05

ii. Bank Guarantees 1657.95 493.82

3. Micro, small and medium enterprises

The identification of Micro, Small and Medium Enterprise suppliers as defined under the provisions of "The Micro, Small and Medium Enterprises Development Act, 2006" is based on Management''s knowledge of their status.

The Company has not received any memorandum (as required to be filed by the suppliers with the notified authority under the Micro, Small and Medium Enterprises Development Act, 2006) claiming their status as Micro, Small or Medium Enterprises. Consequently the amount paid / payable to these parties during the year and previous year is nil.

4. Employee benefit

a) Defined benefit plan:

Gratuity: Every employee is entitled to a benefit equivalent to 15 days salary last drawn for each completed year of service in line with payment of Gratuity Act, 1972. The same is payable at the time of separation from the Company or retirement, whichever is earlier.

5. Segment reporting

The Company''s operations fall within a single business segment Construction and related activities and single geographical segment and therefore segment information as required under AS -17 is not applicable

6. Related party disclosures

Related parties have been identified by the management i) Related parties and description of relationship

A. Enterprises where control exists

Subsidiary company: Manjeera Retail Holdings Private Limited and MTM Estate and Properties Private Limited

B. Other related parties with whom the Company had transactions

Enterprises over which shareholders, key management personnel and their relatives can exercise control or significant influence

i) Manjeera Estates Private Limited

ii) Manjeera Hotels & Resorts Private limited

iii) Gajjala Investments & Holdings Private Limited

iv) Aashraya Hotels And Estates Private Limited

v) MTM Estates And Properties Private Limited

vi) GM Infra Ventures Private Limited

vii) Manjeera Projects

C. Key Management Personnel(KMP)

i) G. Yoganand - Managing Director

ii) G. Vivekanand - Whole time Director

iii) K. Krishna Murty - Independent Director

iv) DLS Sreshti - Independent Director

7. Disclosure as per Clause 32 of the Listing Agreement with the stock exchange, Loans and advances in the nature of loan given Manjeera Retail Holdings Private Limited - Subsidiary company GM Infra ventures private Limited - Associate Manjeera Hotels & Resorts Private Limited - Associates

8. Previous Year Comparatives

Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure.

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Mar 31, 2013

Corporate information

Manjeera Constructions Limited is mainly engaged in property development, civil construction contracts and infrastructure projects development.

1. Contingent liabilities

(Figures are in Rs. Lacs unless otherwise stated)

As at As at 31 March 2013 31 March 2012

i. Direct and Indirect taxes claims disputed by the 18.05 7.71 Company to issues of applicability

ii. Bank Guarantees 493.82 874.33

2. Micro, small and medium enterprises

The identification of Micro, Small and Medium Enterprise suppliers as defined under the provisions of ''The Micro, Small and Medium Enterprises Development Act, 2006'' is based on Management''s knowledge of their status.

The Company has not received any memorandum (as required to be filed by the suppliers with the notified authority under the Micro, Small and Medium Enterprises Development Act, 2006) claiming their status as Micro, Small or Medium Enterprises. Consequently the amount paid / payable to these parties during the year and previous year is nil.

3. Employee benefit

Every employee of the Company who has completed five years or more of service is entitled for gratuity benefit on retirement, death or termination of employment, in accordance with the Payment of Gratuity Act,1972. The Gratuity Scheme is not funded and appropriate liability as required under AS 15 (Revised 2005) is provided in the Balance Sheet.

4. Segment reporting

The Company''s operations fall within a single business segment Construction and related activities and single geographical segment and therefore segment information as required under AS – 17 is not applicable

5. Related party disclosures

Related parties have been identified by the management i) Related parties and description of relationship

A. Enterprises where control exists Subsidiary Company. Manjeera Retail holdings Private Limited

B. Other related parties with whom the Company had transactions Enterprises over which shareholders, key management personnel and their relatives can exercise control or significant influence

i) Manjeera Estates Private Limited

ii) Manjeera hotels & Resorts Private limited

iii) Gajjala Investments & holdings Private Limited

iv) Aashraya hotels And Estates Private Limited

v) MTM Estates And Properties Private Limited

vi) GM Infra Ventures Private Limited

vii) Manjeera Projects

C. Key Management Personnel (KMP)

i) G Yoganand – Managing Director ii) G Vivekanand – Whole time Director iii) K Krishna Murty – Independent Director iv) DLS Sreshti – Independent Director

6. Disclosure as per Clause 32 of the Listing Agreement with the stock exchange

Loans and advances in the nature of loan given Manjeera Retail holdings Private Limited – Subsidiary Company GM Infra ventures private Limited – Associate Manjeera hotels & Resorts Private Limited – Associates

7. Previous Year Comparatives

Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure.

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Mar 31, 2012

A) The rights attached to equity shares and restrictions on the distribution of dividends :

The Company has only one class of shares referred to as equity shares having a par value of Rs.10. Each holder of equity shares is entitled to one vote per share. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the Annual General Meeting

1. Corporate information

Manjeera Constructions Limited along with its subsidiary, Manjeera Retail Holding Private limited is mainly engaged in property development, civil construction contracts and infrastructure projects development.

As at As at 31 March, 2012 31 March, 2011

2.1 Contingent liabilities (to the extent not provided for)

Claims against the Company not acknowledged as debt 9.45 9.45

Guarantees 874.33 527.40

883.78 536.85

2.2 As of 31st March, 2012 the Company had no outstanding dues to Micro, Small and Medium enterprises under the Micro, Small and Medium Enterprises Development Act, 2006 as per the records available. Further the Company has not paid any interest to Micro, Small and Medium Enterprises.

b) Discount rate 08.00 % p.a. is used and chosen by reference to market yields on government bonds as at the same date.

c) Expected rate of return : Nil as the Company has not created any such fund.

f) Project Unit Credit (PUC) acturial method used to assess Plan's liabilities.

In respect of members who have not completed five years of service are not eligible for gratuity, the liability is assumed to accumulate on straight line basis over an everage period of three years

2.3 As the Company's operations predominantly consists of single segment viz., construction and related activities, the disclosure requirements of Accounting Standard (AS) 17 "Segement Reporting" issued by the Institute of Charterd Accountants of India is not applicable

2.4 Amounts in the Financial Statements are rounded off to the nearest Lac Rupees in decimals unless otherwise stated.

2.5 The Revised Schedule VI has become effective from 1st April, 2011 for the preparation of Financial Statements. This has significantly impacted the disclosure and presentation made in the Financial Statements. Previous year's figures have been regrouped / reclassified wherever necessary to correspond with the current year's classification / disclosure.

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Mar 31, 2011

1. Contingent liabilities not provided for:

a) Guarantees issued by banks Rs 527.40 Lacs (Previous year Rs 527.40 Lacs)

b) APGST payable Rs 9,44,700 for the financial year 2004-05 pending appeal with Sales Tax Appellate Tribunal.

2. The Company is formed for real estate development and such operations are not capable of being expressed in any generic unit. Hence it is not possible to give the quantitative details under paragraph 3,4C and 4D of Part II of Schedule VI of the Companies Act, 1956.

3. In terms of the disclosures required to be made under the Accounting Standard (AS) 7 (revised 2002) issued by the Institute of Chartered Accountants of India for 'Construction Contracts', the amounts considered in the financial statements up to the balance sheet date are as follows.

31.03.2011 31.03.2010

(Rs) (Rs)

Contract revenue recognized during the year 45,59,32,914 31,26,45,848

Contract costs incurred and recognized profits 36,12,29,185 27,32,73,313

Advances received, net of recoveries from progressive bills 2,48,28,600 4,00,00,000

Gross amount due from customers from contract works 5,94,50,583 3,91,03,081

Gross amounts due to customers for contract work Nil Nil

4. i) Provision for taxation made under the liability method after availing exemptions and Deductions at the rates applicable under the Income Tax Act, 1961 includes Rs 4,58,77,670 for the current period.

ii) Income tax Assessments have been completed upto the Assessment year 2008-09.

iii) profit before tax includes Rs 1,52,86,033 deductible under section 80-IB of Income Tax Act,1961 from the Gross total income of the Company for the year under consideration and relates to Manjeera Heights Phase II project.

5. As of 31st March, 2011, the Company had no outstanding dues to Micro and Small enterprises under the Micro Small and Medium Enterprises Development Act, 2006 as per the records available. Further the Company has not paid any interest to Micro,Small and Medium enterprises.

6. Employee benefits

The following set out the status of the Gratuity plan as required under AS15(revised)

Amount recognized in Balance Sheet

Present value of obligation Rs 13,09,000

Provisions Rs 13,09,000

Expenses recognized in profit and loss account included in salaries Rs 13,09,000

Discount rate 8% p.a

Salary increase 5% p.a

7. Managerial remuneration under section 198 of the Companies Act, 1956: Managing Director - Salary Rs 54,00,000 (previous year Rs 54,00,000) and other directors Rs 7,40,000 (previous year Rs 65,000)

8. Particulars of loans and advances in the nature of loans as required under clause 32 of the listing agreement. Nil (Previous Year: Nil)

9. Related party disclosures as required by Accounting Standard 18 of the Institute of Chartered Accountants of India:

A) Related parties and relationship:

i) Key management personnel G Yoganand, Managing Director G Shiva Leelanand, Director K Krishna Murthy, Director D L S Sreshti, Director

G Vivekanand, Whole-time Director

ii) Enterprises in which key Management personnel have signifcant infuence: Manjeera Hotels & Resorts Limited Manjeera Estates Private Limited Manjeera Projects GM Infra Ventures Private Limited Gajjala Investments and Holdings Private Limited

iii) Subsidiary Company: Manjeera Retail Holdings Private Limited

iv) Associates:

Ashraya Hotels & Estates Private Limited

v) Joint venture: Bharathi Infraprojects Private Limited

Related parties relationship as stated above are identifed by the Company as required under Accounting Standard and relied by the Auditors.

8. As per Accounting Standard 22 on "Accounting for Taxes on income" issued by the Institute of Chartered Accountants of India, the Company has accounted Deferred tax liability of Rs 96,91,153 as on 31.03.2011 on accounting of timing difference of depreciation. For the period under consideration Rs 14,59,033 has been written back on account of such depreciation in profit and Loss account.

9. As the Company's operations predominantly consists of single segment viz., construction and related activities, the disclosure requirements of Accounting Standard 17 "Segment Reporting" issued by the Institute of Chartered Accountants of India is not applicable.

10. Figures have been rounded off to the nearest rupee.

11. Figures of the previous year have been regrouped / rearranged wherever necessary to make them comparable with that of current year presentation.

12. Schedules one to nineteen form part of accounts.

Notes

1. The cash fows from operating activities has been prepared under Indirect method as per AS-3 issued by the Institute of Chartered Accountants of India.

2. Cash and cash equivalents represent cash and bank balances(net).

3. Figures under brackets represent cash outflows.

Additional information pursuant to Part IV of Schedule VI to the Companies Act, 1956.

I. Registration Details:

Registration No : 72280 F 1986-87

State Code : 01

Balance Sheet Date : 31.03.2011

II. Capital raised during the year: (Amount in Rs Thousands)

Public Issue NIL

Bonus Issue NIL

Right Issue NIL

Private Placement NIL

III. Position of Mobilization and deployment of funds: (Amount in Rs Thousands)

Total Liabilities

Source of Funds:

1. Paid-up Capital 125084

2. Reserves & Surplus 487384

3. Deferred tax liability 9692

4. Secured Loans 353346

5. Unsecured Loans 47458

TOTAL 1022964

Total Assets

Application of Funds:

1 Net Fixed Assets 61271

2 Investments 523800

3. Net Current Assets 437300

4. Misc. Expenditure 593

TOTAL 1022964

IV Performance of Company (Amount in Rs Thousands)

Turnover 835801

Total Expenditure 674505

profit before tax 142923

profit after Tax 100179

Earnings per share (Rs) 8.01

V. Generic names of the Three Principal products of the Company

(Code: 72200)

1. Sale of Flats / Plots

2. Sale of Space

3. Contract receipts

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Mar 31, 2010

1. Contingent liabilities not provided for:

a) Bank Guarantees Rs.527.40 Lac (Previous year Rs.527.40 Lac)

b) APGST payable (I) Rs.3,45,181 for the financial year 2000-01 and (ii) Rs.22,13,846 for the financial year 2004-05 pending appeal with Appellate Dy.Commissioner (CT), Hyderabad.

2. Particulars under paragraph 3,4C and 4D of Part II of Schedule VI of the Companies Act, 1956, to the extent applicable:

3. i) Provision for taxation made under the liability method after availing exemptions and eductions at the rates applicable under the Income Tax Act, 1961 includes Rs.2,13,00,000 for the current period.

ii) Income tax Assessments have been completed upto the Assessment year 2007-08.

iii) Profit before tax includes Rs.9,69,95,033 deductible under section 80-IB of Income Tax Act,1961 from the Gross total income of the Company for the year under consideration relates Manjeera Heights Phase II project.

4. As of 31st March, 2010, the Company had no outstanding dues to small and medium Enterprises as per the records available.

5. Managerial remuneration under section 198 of the Companies Act, 1956: Managing Director - Salary Rs.54,00,000 and other directors Rs.65,000 (previous year Rs.42,45,000)

6. Particulars of loans and advances in the nature of loans as required under clause 32 of the listing agreement.: Nil (Previous Year: Nil)

7. Related party disclosures as required by Accounting Standard 18 of the Institute of Chartered Accountants of India:

A) Related parties and relationship:

I) Key management personnel G Yoganand, Managing Director G Shivaleelanand, Director K Krishna Murthy, Director D L S Sreshti, Director

ii) Enterprises in which key Management personnel have significant influence:

Manjeera Hotels & Resorts Limited Manjeera Estates Private Limited Manjeera Projects GM Infra Ventures Private Limited

iii) Subsidiary Company: Manjeera Retail Holdings Private Limited

iv) Associates:

Ashraya Hotels & Estates Private Limited Ambica Chennakesava Projects Limited

v) Joint venture: Bharathi Infraprojects Private Limited

8. As per Accounting Standard 22 on "Accounting for Taxes on income" issued by the Institute of Chartered Accountants of India, the Company has accounted Deferred tax liability of Rs.1,11,50,186 as on 31.03.2010 on accounting of timing difference of depreciation. For the period under consideration Rs.15,22,044 has been added on account of such depreciation in Profit and Loss account.

9. As the Companys operations predominantly consists of single segment viz., construction and related activities, the disclosure requirements of Accounting Standard 17 "Segment Reporting" issued by the Institute of Chartered Accountants of India is not applicable.

10. Figures have been rounded off to the nearest rupee.

11 Figures of the previous year have been regrouped / rearranged wherever necessary to make them comparable with that of current year presentation.

12 Schedules one to nineteen form part of accounts.