Marg
BSE: 530543 | NSE: MARG | ISIN: INE941E01019 | Construction & Contracting - Housing
- Directors Report
- Chairman's Speech
- Auditors Report
- Notes To Accounts
- Accounting Policy
- Finished Products
- Raw Materials
| Directors Report | Year End : Mar '08 |
The Directors of your Company have great pleasure in presenting the
thirteenth Annual Report, together with the audited accounts for the
financial year ended March 31, 2008. Members would be happy to note
that your Company had a good year of operations, resulting in a total
income of Rs. 2,783.97 million, an increase of 96.71% over the last
year. Operations resulted in after tax profit of Rs. 674.43 million, an
increase of 125.46% over the last year.
Operations
The Companys financial results for the year ended March 31, 2008 is
summarised below:
(Rs in million)
Year ended Year ended
Income from operations 2,427.48 1,242.08
Non-operating Income 356.49 173.20
Total income 2,783.97 1,415.28
Total expenditure 1,865.56 947.95
Profit before depreciation, interest and taxation 918.41 467.33
Interest & finance charges 51.28 62.61
Depreciation 31.77 19.15
Profit before tax 835.37 385.57
Provision for current taxes 144.00 80.00
Provision for deferred taxes 15.36 5.69
Fringe benefit tax 1.58 0.74
Profit after tax 674.43 299.14
Balance in Profit & Loss Account 358.04 112.57
Amount available for appropriation 1,032.47 411.71
Interim Dividend 51.22 20.84
Dividend tax 8.70 2.92
Transfer to general reserve 70.09 29.91
Balance carried to Balance Sheet 902.46 358.04
During the year, the basic earning per share is Rs. 31.88 and diluted
earning per share is Rs. 31.76 for equity share of Rs. 10 each.
The year 2007-08, witnessed excellent results as your Company achieved
an operational income of Rs. 2,427.48 mn for the financial year 2007-08
compared with Rs. 1,242.08 mn in 2006-07. The total turnover also
increased to Rs. 2,783.97 mn for the current year as against Rs.
1,415.28 mn of the previous year. Profit before depreciation, interest
and tax stood at Rs. 918.41 mn compared to last years Rs. 467.33 mn,
registering an increase of 96.52%. Profit before tax stood at Rs 835.37
mn, an increase of 116.66% over the last year.
Name change
The Companys Shareholders at their Annual General Meeting held on
September 25, 2007, approved the change in name of the Company from
MARG Constructions Limited to MARG Limited. The same was approved by
the Registrar of Companies and a fresh certificate of incorporation was
issued on December 17, 2007.
The Company has included one more objective, i.e. setting up of
infrastructural facilities, industrial projects, tourism projects, etc.
while continuing in the business of construction and infrastructure
development.
Projects
Your Company has progressed well in all its current projects in
different verticals, handled by dedicated teams. The average age of the
employees is 34 years. These teams are highly skilled, motivated and
are led by professionals who are experts in their respective fields.
The projects are discussed in detail in the Management Discussion and
Analysis Report which forms part of this report.
Dividend
The Directors recommend a dividend of 20% (Rs. 2 per equity shares of
Rs. 10 each) for the year ended March 31, 2008. The aggregate amount of
dividend on equity shares for the financial year 2007-08 would be Rs.
59.92 mn, including dividend tax and surcharge thereon. The company
proposes to transfer Rs.70.09 million to the General Reserves out of
the amount available for appropriation.
Future prospects
Going forward, we maintain our positive outlook to maintain the growth
momentum for the year 2008-09. Infrastructure and realty sectors
cemented its path and witnessed significant growth.
The envisaged GDP by the Government of India need to be supported by
creating further infrastructural facilities. The avenues are abundant
and the Company is trying to capitalise on the opportunities available
through all the concerns.
Your Company is pursuing growth opportunities, strategic to its intents
and operations. It has all available resources leading to the future,
leveraging on all available infrastructural development opportunities.
Future prospects and projects of the Company are provided in detail in
the Managements Discussion and Analysis Report.
Your company aims at capturing 5% of the market shares in all the
business verticals.
Challenges
Your Company has set a vision to be a trusted market leader in
providing infrastructure solutions and is thus set for an exponential
growth, while gearing up to take challenges.
The Company is facing normal market competition from domestic and
international companies. It has successfully maintained its operating
efficiencies and constantly improved its financial performance.
Joint venture agreement
Signa Infrastructure (India) Limited was incorporated as a subsidiary
of MARG Limited (then MARG Constructions Limited), a joint venture of
the Company.
This company was formed with a view to take up larger projects in
infrastructure development. The joint venture partner, Housing and
Urban Development Corporation Limited (HUDCO), holds 26% of shares and
74% share are held by your Company. This company is executing certain
projects and is also bidding larger projects in infrastructure segment
including Government projects.
Fixed deposits
The Company has not invited or accepted any fixed deposits from the
public.
Directors
In accordance with the provisions of the Companies Act, 1956, and the
Articles of Association of the Company, Mr. Saibaba Vutukuri, was
appointed as the Additional Director on Board on October 24, 2007. The
Company has received a notice under Section 257 of the Companies Act,
relating to his re-appointment at this Annual General Meeting.
Mr. P M Shivaraman and Mrs. V P Rajini Reddy, Directors retire by
rotation and being eligible offer themselves for re- appointment.
Directors responsibility statement
Pursuant to the requirement under Section 217(2AA) of the Companies
Act, 1956, the Directors hereby confirm that:
i) In the preparation of the Annual Accounts for the financial year
ended March 31, 2008 the applicable accounting standards had been
followed and there are no material departures;
ii) They have selected such 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 of affairs of
the Company at the end of the financial year and of the profit and loss
account of the Company for that period;
iii) They have taken proper and sufficient care to the best of their
knowledge and ability for the maintenance of adequate accounting
records in accordance with the provisions of the Act for safeguarding
the assets of the Company and for preventing and detecting fraud and
other irregularities;
iv) They have prepared annual accounts on a going concern basis.
Auditors
M/s K Ramkumar and Co., Chartered Accountants, Auditors of the Company,
holds office upto conclusion of the forthcoming Annual General Meeting
and have given their consent for the reappointment. The company has
received a certificate under Section 224(1B) regarding their
eligibility for re-appointment as the Companys auditors for the year
2008-09.
Corporate social responsibility - approach towards society
At MARG we want progress to be inclusive; we would like our communities
and our people to grow along with us, to have access to equal
opportunity and the power to make their dreams a reality. Your company
has started programmes to usher in a ‘Chain of Change through three
aspects - education, health & nutrition and the environment.
In the field of education and skill development, Your Company proposes
to upgrade school infrastructure, balwadis and aanganwadis, and
providing educational aids like charts, globes and libraries. Your
company will also enable skill development in association with CII and
local NGOs. Your company has established a Grassroots Level Skill
Development Initiative (GLSDI) that offer a 20-day training program to
prepare these youths to the world of work. This initiative shall impart
training at the pre-employment level, covering areas such as workplace
culture, communication skills, hygiene, safety, time management, etc.
and industry- specific training program to equip people with specific
industries like construction, manufacturing units, and so on. Through
this initiative so far 1035 youth have been placed.
Providing communities with access to healthcare allows a community to
grow strong. Towards this end, Your Company plans to upgrade Primary
Health Centres with medical equipment, proper sanitation facilities for
children at schools, setting up a multi speciality hospital at
Koovathur, besides conducting routine medical camps.
A good environment will foster a better quality of life. Your companys
initiative in this direction involves creating ponds, water collection
infrastructure in anticipation of the monsoons, provide for piping of
water, filling of OHT during the summer and to plant trees for a
cleaner and greener city.
Besides the above, your company has undertaken various outreach
programmes like an Ability Fest, conducted in association with Ability
Foundation, for the disabled. Another programme was conducted for 240
under privileged children, studying in a residential school, as an
educational tour.
Industrial relations
Your Company believes in maintaining cordial industrial relations with
workers at all project sites. Your company strives in augmenting and
developing human assets. At present we have around 25 contractors
employing around 1500 contract workmen at various projects.
Employee wellness
Your Company believes in work life balance; we have family interaction
programmes which are combined with national festival holidays. We
celebrate these festivals with great pomp and grandeur.
Leverage human potential
Your Company recognizes the potential in each employee and it
endeavours to capitalize on this potential through innovative reward
and recognition programmes.
Particulars of employees
Particulars of the employees of the Company who were in receipt of
remuneration, which in aggregate exceed the limits fixed under Section
217 (2A) of the Companies Act, 1956, and Companies (Particulars of
Employees) Rules, 1975, is separately provided marked as Annexure I.
Conservation of energy, technology absorption, foreign exchange earning
and outgo As the Company is not an industrial undertaking, accordingly,
particulars with regard to conservation of energy and technology
absorption and adaptation required to be given under these heads in
accordance with the provisions of Section 217(1)(e) of the Companies
Act, 1956, read with the Companies (Disclosure of Particulars in the
Report of Board of Directors) Rules, 1988, are not applicable.
The information on foreign exchanges earnings and outgo is contained in
the note 14 schedule 18 Notes to Account, forming part of the accounts.
A separate list is also attached as Annexure II.
Subsidiaries
The Company has 69 subsidiaries as on March 31, 2008. Brief details of
the subsidiaries are attached as Annexure IV. The Company has been
granted exemption by the Central Government vide their letter bearing
number 47/313/2008- CL-III dated May 23, 2008 as per provisions of
Section 212 (8) of the Companies Act, 1956, from attaching the accounts
and other information of subsidiaries as required under Section 212 (1)
of the Companies Act, 1956. However a statement is attached in
consolidated Balance Sheet providing the following information for each
subsidiary (a) capital, (b) reserves, (c) total assets, (d) total
liabilities, (e) details of investment (except in case of investment in
subsidiaries), (f) turnover, (g) profit (loss) before taxation, (h)
provision for taxation, (i) profit (loss) after taxation and (j)
proposed dividend” as per the exemption of the Central Government. The
same forms part of the annual accounts of the Company.
The consolidated financial statements of the subsidiaries duly audited
are presented along with the accounts of your Company. The annual
accounts of subsidiary company are kept at the Companys registered
office and also at the respective registered office of the subsidiaries
for inspection and shall be made available to the any members/
investors of Company or any subsidiary, seeking such information at any
point of time.
Employee stock option scheme
Your Company had implemented MARG Constructions Limited Employee Stock
Option Scheme 2006 (ESOP 2006) and MARG Constructions Limited Employee
Stock Option Scheme 2007 (ESOP 2007) for the benefit of employees of
the Company and its subsidiaries. The aforesaid Scheme was approved by
the members of the Company at the Annual General Meeting held on
September 30, 2006 and September 25, 2007 respectively and the scheme
is monitored under the guidance of the members of Compensation
Committee of the Board of Directors.
The Disclosures required to be made under SEBI (Employees Stock Option
Scheme and Employees Stock Purchase Scheme) Guidelines, 1999 is given
as Annexure III to this report including details on the grant, vesting,
exercise, and lapsed under the aforesaid scheme ESOP 2006 and ESOP
2007.
Management discussion and analysis report
The Management discussion and analysis report for the year under
review, as stipulated under Clause 49 of the Listing Agreements is
presented in a separate section forming part of the Directors Report.
This segment also contains detailed information of projects executed
under each vertical.
Corporate governance
Your Company is committed to maintain the highest standards of
Corporate Governance. Your Directors adhere to the requirements set out
by the Securities Exchange Board of Indias, Corporate Governance
Practices and have implemented all the stipulations prescribed. Report
on Corporate Governance as stipulated in Clause 49 of the Listing
Agreement is presented in a separate section, forming part of the
Directors Report.
Acknowledgement
Your Directors would like to express their grateful appreciation for
assistance and co-operation received from the financial institutions,
banks, government authorities, customers and members, during the year
under review.
Your Directors also wish to place on record their deep sense of
appreciation for committed and dedicated services of the workers,
staff, and officers of the Company.
For and on behalf of the Board of Directors
Place: Chennai G R K Reddy
Date : June 18, 2008 Chairman & Managing Director
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