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Madhucon Projects Ltd.

BSE: 531497 Sector: Infrastructure
NSE: MADHUCON ISIN Code: INE378D01032
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VOLUME 12241
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OPEN 6.66
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VOLUME 12241
52-Week high 7.82
52-Week low 2.20
P/E
Mkt Cap.(Rs cr) 51
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Madhucon Projects Ltd. (MADHUCON) - Director Report

Company director report

Your Directors have pleasure in presenting the 30th Annual Report of the Companytogether with the Audited Financial Statements for the year ended March 31 2020.

(Rs in Lakhs)

1) FINANCIAL SUMMARY

S. No. Particulars Standalone Year ended Consolidated Year ended
31.03.2020 31.03.2019 31.03.2020 31.03.2019
(Audited) (Audited) ( Audited) (Audited)
1 Income from Operations:
(a) Net Sales/ Income from Operations 54682.00 66944.33 73413.09 94244.01
(b) Other income 787.07 1540.56 4604.02 4074.00
Total Income 55469.07 68484.89 78017.11 98318.01
2 Expenses:
(a) Cost of Materials Consumed 51044.53 58666.41 60650.21 71345.13
(b) Changes in Inventory of Finished goods Work-in-Progress and stock-in-trade - - 1496.42 3489.78
(c) Employee benefits expense 2196.78 3000.88 3530.72 4519.33
(d) Other expenses 2536.45 4395.45 3047.03 9153.31
(e) Financial Costs 1343.22 2252.53 15028.49 27904.87
(f) Depreciation and amortisation expense 836.52 771.31 7157.74 22420.08
Total Expenses 57956.80 69086.58 90910.61 138832.50
3 Profit/(Loss) Before Exceptional Items (1-2) (2487.73) (601.69) (12893.50) (40514.49)
4 Exceptional Items 22727.00 - 97027.06 -
5 Profit/(Loss) Before Tax (3-4) (25214.73) (601.69) (109920.56) (40514.49)
6 Tax Expense
a) Current Tax - - - -
b) Deferred Tax (3656.98) (2462.40) 1583.67 (2462.40)
Total Tax (a+b) (3656.98) (2462.40) 1583.67 (2462.40)
7 Net Profit/(Loss) After Tax (5-6) (21557.75) 1860.71 (111504.23} (38052.09)
Share of Loss transferred to Non Controlling Interest - - (4921.29) (3663.03)
Profit/(Loss) after Tax after Non Controlling Interest (21557.75) 1860.71 (106582.94) (34389.06)
Share of Profit or Loss from Associated Companies - - - -
Profit/(Loss) after Tax after Share of Minority
Interest & Associated Companies (21557.75) 1860.71 (106582.94) (34389.06)
8 Other Comprehensive Income 71.00 34.45 204.36 107.91
Share of Other Comprehensive Income transferred to Non Controlling Interest - - 0.01 13.05
9 Total Comprehensive Income (7+8) (21 486.75) 1895.16 (106378.57) (34.294.21)
10 Paid up equity share capital (Face Value of Rs.1/- each) 737.95 737.95 737.95 737.95
11 Other Equity 52604.48 80722.03 (243839.86) (212984.3)
12 (i) Earning per share of Re.1/- each (not annualised) - -
(a) Basic (29.21) 2.52 (144.43) (46.60)
(b) Diluted (29.21) 2.52 (144.43) (46.60)

2) EXTRACT OF ANNUAL RETURN:

Pursuant to Section 92(3) of the Companies Act 2013 and Rule 12(1) of the Companies(Management and Administration) Rules 2014 an extract of annual return in MGT 9 as apart of this Annual Report is annexed as ANNEXURE I to this report.

3) RESERVES: [Section 134(3)(j)]:

Company has not transferred any amount to reserves due to the loss.

4) DIVIDEND: [Section 134(3)(k)]

No dividend was declared on equity shares for the year ended 31.03.2020 due to Loss.

5) BOARD MEETINGS:

The Board met 4 (Four) times during the financial year 2019-2020. The following are thedates of meeting convened in different Quarters of the financial year.

First Quarter

Second Quarter

Third Quarter

Fourth Quarter

Meeting No. Date Meeting No. Date Meeting No. Date Meeting No. Date
584 25.05.2019 585 13.08.2019 586 14.11.2019 587 11.02.2020

6)DIRECTORS RESPONSIBILITY STATEMENT:

Pursuant to the requirement under section 134(3) (c) of the Companies Act 2013 it ishereby confirmed: i. That in the preparation of annual accounts for the financial yearended 31st March 2020; the applicable Accounting Standards have been followedalong with proper explanation relating to material departures. ii. That the Directors haveselected Accounting Policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state ofaffairs of the Company at the end of the financial year and of the profit or loss of theCompany for that period. iii. That the Directors have taken proper and sufficient care forthe maintenance of adequate accounting records in accordance with the provisions of theCompanies Act 2013 for safeguarding the assets of the Company and for preventing anddetecting frauds and other irregularities. iv. That the Directors have prepared the annualaccounts for the year ended 31st March 2020 on a Going Concern basis. v. Thatthe directors had laid down internal financial controls to be followed by the Company andthat such internal financial controls are adequate and are operating effectively. vi. Thatthe directors had devised proper systems to ensure compliance with the provisions of allapplicable laws and that such systems are adequate and operating effectively.

7) ADEQUACY OF INTERNAL FINANCIAL CONTROL

The Company has structured and implemented framework for Internal Financial Controls (IFC ) in terms of the explana tion to Section 134(5) (e) of the Companies Act 2013. TheBoard of Directors of the Company is of the opinion that the Company has sound IFC for theyear 2019-2020.The Company is continuously monitoring and identified the gaps if any andimplements improved controls wherever the effect of such gaps would have a material effecton the Company s operations.

8) DECLARATION FROM INDEPENDENT DIRECTORS ON ANNUAL BASIS

The Company has received Declarations of independence as stipulated under sec 149(7) ofCompanies act 2013 and regulation 25 of the listing regulations from Independent directorsconfirming that he /she is not disqualified from continuing as independent Director theSame annexed to this report as ANNEXURE-VIII.

9) NOMINATION AND REMUNERATION POLICY

The Board has on the recommendation of the Nomination & Remuneration Committeerevised Nomination and Remuneration policy in its meeting held on 28.05.2019 which laysdown a framework in relation to selection appointment and remuneration to Directors KeyManagerial Personnel and Senior Management and criteria for determining qualificationspositive attributives and independence of a director of the Company. The Nomination andRemuneration Policy is stated in the Corporate Governance Report.

10) PARTICULARS OF LOANS GUARANTEES OR INVESTMENTS U/S 86

Details of Loans Guarantees and Investments covered under the provisions of Section186 of the Companies Act 2013 are given in the notes to the Financial Statements.

11) RELATED PARTY TRANSACTIONS

The transactions entered with the related parties by the Company for the year underreview with respect to rendering of services were on arm s length basis and in theordinary course of business. Hence Section 188(1) is not attracted to the Company. Thusdisclosure in Form AOC-2 is not applicable to the Company. There are no material relatedparty transac tions during the year under review with the promoters Directors or KeyManagerial Personnel.

12) STATE OF THE COMPANY S AFFAIRS

The Company is a well-established Construction Company and a leading Contractor inexecuting projects in various sectors Transportation (National & State HighwaysRoads Railways & Ports Irrigation & Water Resources Buildings

& Property Development Mining (Coal & other Minerals) Energy (GenerationTransmission & Distribution) and other Infrastructure Projects. Further information onthe Company s Business and the developments opportunities and outlook of the Company andthe industry in which it operates are discussed in detail in the Management Discussion& Analysis which is enclosed in ANNEXURE II.

13) MATERIAL CHANGES AND COMMITMENTS AFFECTING THE FINANCIAL POSITION OF THE COMPANY

There are no material changes and commitments affecting the financial position of theCompany occurred between the end of the financial year to which the financial statementsrelate and the date of this report.

14) INFORMATION AS PER SECTION 134(3)(m) OF THE COMPANIES ACT 2013 READ WITH RULE 8 OFTHE COMPANIES ACCOUNTS) RULES 2014

The information as required under Section 134(3) (m) of the Companies Act 2013 readwith Rule 8 of the Companies (Accounts) Rules 2014 relating to conservation of energytechnology absorption and foreign exchange earnings and outgo are set out in the ANNEXUREIII and is attached to this report.

15) RISK MANAGEMENT

Periodic assessments to identify the risk areas are carried out and management isbriefed on the risks in advance to enable the Company to control risk through a properlydefined plan. The risks are taken into account while preparing the annual business planfor the year. The Board is also periodically informed of the business risks and theactions taken to manage them.

16) CORPORATE SOCIAL RESPONSIBILTY (CSR) POLICY

Pursuant to the provisions of Section 135 and Schedule VII of the Companies Act 2013CSR Committee of the Board of Directors was formed to recommend; a) The policy onCorporate Social Responsibility (CSR) and b) Implementation of the CSR Projects orPrograms to be undertaken by the Company as per CSR Policy by the Board of Directors.

Annual Report on CSR in the prescribed format is enclosed in ANNEXURE IV.

17) M/s Simhapuri Energy Limited NCLT Matter:

State Bank of India (SBI) has filed a petition against SEL before National Company LawTribunal (NCLT) Hyderabad Bench Vide No. CP(IB) No. 13/7/HDB/2020 for initiation of CIRP.

18) FORMAL ANNUAL EVALUATION

In compliance with the Companies Act 2013 and Regulation 17(10) of SEBI (ListingObligations and Disclosure Require ments) Regulations 2015 the performance evaluationof the Board was carried out during the year under review.

19) REPORT ON THE PERFORMANCE/FINANCIAL POSITION OF THE SUBSIDIARIES /ASSOCIATES/JOINTVENTURES CO

PANIES

A separate statement containing the salient features of the financial statements of thesubsidiary Companies/Associate Companies/Joint Ventures is prepared in Form AOC-1 as perthe provisions of Section 129 of the Companies Act 2013 read with Companies (Accounts)Rules 2014 as Amended and is attached in ANNEXURE V.

20) CONSOLIDATION OF ACCOUNTS

In compliance with Regulation 33 of the SEBI (LODR) Regulations 2015 and in compliancewith the provisions of the Companies Act 2013 and the Ind AS 28 Investments in Associatesand joint ventures and Ind AS 110 Consolidated Financial Statements Your Directors havepleasure in attaching the consolidated financial statements for the financial year endedMarch 31 2020 duly audited by the Statutory Auditors which forms part of the AnnualReport. The Annual Accounts of the Subsidiary Companies and the related information willbe made available to shareholders who may be interested in obtaining the same at anypoint of time. The Annual Accounts of Subsidiary Companies will also be kept forinspection by any shareholder at the Registered Office of the Company and also at itsSubsidiary Companies.

21) DETAILS OF DIRECTORS AND KEY MANANGERIAL PERSONNEL APPOINTED AND RESIGNED DURINGTHEYEAR. a) Change in Key Managerial Personnel during the year

Sri. Deepakbhai Kumudray Joshi was resigned for the post of Company Secretary of thecompany and was relieved of his services w.e.f. 13/08/2019.

Smt. Rajani Kamatham was appointed as the Company Secretary of the Company w.e.f.13/08/2019.

Sri. Deepakbhai Kumudray Joshi was resigned for the post of Chief Financial Officer ofthe company and was relieved of his services w.e.f. 22/08/2019. b) Change in Directorsduring the year

The tenure of Mr. Seethaiah Nama Managing Director expired on 30-04-2019 and hence theboard in its meeting dated 11th February 2019 re-appointed him as the Wholetime Director of the Company for a further period of 3 (three) years w.e.f. 01/05/2019.The board recommended and ratified his appointment in the previous 29th AnnualGeneral Meeting.

Mr. Srinivasa Rao Kamma Whole time Director of the Company has resigned from thedirectorship due to personal reason w.e.f. 23rd May 2019 and Board acceptedhis resignation in its Meeting held on 28-05-2019.

22) VIGIL MECHANISM

The Company has established Vigil Mechanism for Directors / Employees to report theirgenuine concerns or grievances. The Audit Committee of the Company oversees the vigilMechanism through the Committee. It provides for adequate safeguards against victimizationof directors/ employees who avail of the mechanism. It also provides for direct access tothe Chairman of the Audit Committee. In case of repeated frivolous complaints thesuitable action will be initiated by the Chairman of the Audit Committee.

23) DISCLOSURE UNDER THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTIONPROHIBITION AND REDRESSAL) ACT 2013

The Company has in place an Anti-Sexual Harassment Policy in line with the requirementsof The Sexual Harassment of Women at the Workplace (Prevention Prohibition &Redressal) Act 2013 Internal Complaints Committee (ICC) has been set up to redresscomplaints received regarding sexual harassment. All employees (permanent contractualtemporary trainees) are covered under this policy.

During the financial year 2019-20 the Company received no complaints on sexualharassment.

24) SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS OR TRIBUNALS

There are no significant and material orders passed by the Regulators/ Courts/Tribunalsthat would impact the going concern status of the Company and its future operations.

25) DEPOSITS

The Company had not accepted or invited any Deposits and consequently no deposit hasmatured / become due for re payment as on 31st March 2020.

26) COMPOSITION OF AUDIT COMMITTEE

The Audit Committee comprises of the following members as on 31st March2020:

1. Smt. Ch. Lakshmi Kumari Independent Director as Chairperson

2. Sri Ramadas Kasarneni Independent Director as Member

3. Sri Madhava Rao Potla Independent Director as Member

27) COMPOSITION OF STAKEHOLDERS RELATIONSHIP COMMITTEE

The Stakeholders Relationship Committee comprises of the following members as on 31stMarch 2020:

1. Smt. Ch. Lakshmi Kumari Independent Director as Chairperson

2. Sri P Madhava Rao Independent Director as Member

3. Sri Mohammad Shafi Whole-time Director as Member

28) STATUTORY AUDITORS AND THEIR REPORT

P.Murali & Co. Chartered Accountants (FRN 007257S) were reappointed as StatutoryAuditors of the Company for the Financial Year 2019-20 M/s. P. Murali & Co. CharteredAccountants (FRN 007257S) expressed their willingness to be reappointed for the financialyear 2020-21 and to hold the office upto the conclusion of the next Annual Generalmeeting if they are reappointed at this Annual General Meeting. They have furnished acertificate to the effect that their proposed appointment if made will be in accordancewith the limits specified under 141(1)(g) of the Companies Act 2013.

29) COST AUDITORS

The Board of Directors on recommendation of Audit Committee re-appointed BVR &Associates Cost Accountants (Registration No. 000453) as the Cost Auditors of the Companyto conduct audit of cost records made and maintained by the Company pertaining to WorksContracts Construction of Roads etc. for financial year commencing on 1stApril 2019 and ending on 31st March 2020.

30) SECRETARIAL AUDIT REPORT

Pursuant to the provisions of Section 204 of the Companies Act 2013 and the Companies(Appointment and Remuneration of Managerial Personnel) Rules 2014 Venkata Krishna &Associates Company Secretaries ( ACS 53083 and CP No.19542) has been appointed asSecretarial Auditors of the Company for the financial year 2019-20 to carry out theSecretarial Audit and issue report there on. Secretarial Audit report as issued by VenkataKrishna & Associates Company Secretaries is annexed to this Report as ANNEXURE VI.

31) LISTING WITH STOCK EXCHANGES

The Company s securities have been listed with Bombay Stock Exchange (BSE) NationalStock Exchange (NSE) and Luxembourg Stock Exchange. Listing fee has been paid to BSE andNSE within the prescribed time limit as set in Regulation 14 of Listing Regulations forthe Financial Year 2019-2020.

32) PARTICULARS OF EMPLOYEES

The Company has not employed any individual whose remuneration falls within the purviewof the limits prescribed under the provisions of Section 197 of the Companies Act 2013read with Rule 5(2) of the Companies (Appointment and Remuneration of ManagerialPersonnel) Rules 2014.

The ratio of the remuneration of each Director to the median employee s remunerationand other details in terms of Section 197(12) of the Companies Act 2013 read with Rule5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules 2014are enclosed in ANNEXURE VII and forms part of this Report.

33) CORPORATE GOVERNANCE AND SHAREHOLDERS INFORMATION

Pursuant to the provisions of schedule V of SEBI (Listing Obligations and DisclosuresRequirements) Regulations 2015 a separate section on Corporate Governance has beenincorporated in the Annual Report for the information of the shareholders. Report attachedas Annexure-VIII.

34) APPRECIATIONS

Your Directors wish to place on record their appreciation for the continuous supportreceived from the members customers suppliers bankers various statutory bodies of theGovernment of India and the Company s employees at all levels.

For and on behalf of the Board of Madhucon Projects Limited

Sd/- Sd/-
(N. Seethaiah) (Mohammad Shafi)
Place: Hyderabad Managing Director Whole-time Director
Date: 14-09-2020 DIN: 00784491 DIN: 07178265