The Members of
MARG Limited
The Directors are pleased to present the Sixteenth Annual Report along
with the audited accounts for the year ended 31st March 2011
1. Financial Results (Rs. in Crores)
Year ended Year ended
31st March, 2011 31st March, 2010
Income from operations 1,085.01 745.39
Non-operating Income 1.37 15.49
Total Income 1,086.38 760.88
Total Expenditure 957.23 626.61
Profit before depreciation, interest
and taxation 129.15 134.27
Depreciation 6.89 5.17
Interest & finance charges 27.61 14.38
Profit before tax 94.65 114.72
Tax expenses 34.78 35.22
Profit after tax 59.87 79.50
Balance in Profit & Loss Account 184.94 120.15
Amount available for appropriation 244.81 199.65
Dividend 7.62 6.59
Dividend tax 1.26 1.12
Amount transferred to general reserve 4.50 7.00
Balance in Profit and Loss account 231.43 184.94
The year in retrospect witnessed a jump in turnover which crossed a
revenue of Rs. 1,000 crores, and has been listed by Dun & Bradstreet
among India''s Top 500 Companies, 2010. During the year, the
company''s income grew by 45.56% and the operational EPBITA was Rs.128
crores as compared to Rs.119 crores in the previous year. The basic
Earning Per Share (EPS) is Rs.18.11 on capital of 3.31 crore weighted
average number of shares and Diluted Earning Per Share is Rs.15.85 on
3.77 crore weighted average number of shares of Rs.10 each for the year
under review.
2. Business Highlights FY 2010-11
A. MARG EPC business revenue stood at Rs.1,004 crores, an increase of
43% YoY.
B. Karaikal Port Pvt Ltd, a subsidiary of your Company handled 4.75
MMT of cargo in FY 2010-11, and the revenue was Rs.170 crores in FY
2010-11.
C. New Chennai Township Pvt. Ltd, a subsidiary of your Company, earned
a revenue at Rs. 198 crores, an increase of 32% YoY.
D. MARG ProperTies Ltd, a subsidiary of your Company has sold 0.89 mn
sq.ft (879 units) for Rs. 228 crores.
E. The construction of MARG Junction comprising Mall, Hotel, Multiplex
and Offices by Riverside Infrastructure (India) Private Ltd, (a
subsidiary of your Company), is on schedule and it has executed deals
for 35% of the leasable space in the Mall area.
F. The company raised Rs. 106.93 crores through QIP (Qualified
Institutional Placement) of Equity Shares at an offer price of Rs.
189.88 per share during the FY 2010-11 to fund its various projects.
Your Company''s projects in different verticals are handled by dedicated
teams. The Business situation of the above projects are discussed in
the Management Discussion and Analysis Report which forms part of this
Report.
3. Awards & Recognitions
The Company has received the following awards and recognitions:
1. Listed by Dun & Bradstreet among India''s Top 500 Companies 2010.
2. Hatrick of Awards at India Leadership Conclave 2011 for ''India''s
Most Admired Infrastructure Company 2011'', ''Excellence in Social
Service'' and for ''Innovative CEO of the year''.
3. Sir Visvesvaraya Industrial Award by All India Manufacturers
Organisation (TNSB) in 2010.
4. The ''Second fastest growing construction Company (medium category)
Award'' at the 8th Construction World Annual Awards 2010.
5. ''India Shining Star Award 2011'' for outstanding work in CSR in the
Infrastructure sector by Wockhardt Foundation.
6. 3rd Construction Industry Development Council, ''Vishwakarma Awards
2011'' for achievements in CSR.
4. Increase In Share Capital
During the year, the Company''s paid up Equity Share Capital of the
Company has increased from 27,208,369 Equity Shares to 38,118,926
Equity Shares of Rs.10 each consequent to allotment of 10,910,557
equity shares through Qualified Institutional Placement (QIP), Warrants
conversion and ESOP.
5. Appropriations
A. Dividend
The Directors recommend a dividend of Rs. 2 on the face value of Rs. 10
per share on 38,118,926 equity shares of the Company, for the year
ended 31st March 2011.
B. Transfer To Reserves
The Company propose to transfer Rs. 4.50 crores (7.5% of the Net Profit
for the year) to the General Reserve. A balance amount of Rs. 46.49
crores is proposed to be retained in the Profit & Loss account.
6. Directors
Mrs. V P Rajini Reddy and Mr. G Raghava Reddy, Directors, retire by
rotation and being eligible offer themselves for re-appointment at the
ensuing Annual General Meeting.
7. Auditors
M/s. K Ramkumar and Co., Chartered Accountants, the Statutory Auditor
of the Company, holds office until the conclusion of the ensuing Annual
General Meeting and are eligible for re- appointment. The Company has
received their consent under Section 224 (1B) of the Companies Act,
1956 to the effect that their re-appointment, if made, would be within
the prescribed limits under Sec.224 (1B) of the Companies Act, 1956.
8. Subsidiary Companies
The Company has 82 subsidiaries as on 31st March 2011.
Pursuant to the Government of India''s General Circular No: 2 /2011 (No:
51/12/2007-CL-III) dated 8th February, 2011 issued by Ministry of
Corporate Affairs, the Company has been exempted 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 stipulated
financial information for each subsidiary. As per the conditions of the
above Circular, the same forms part of the annual accounts of the
Company.
The Consolidated Financial Statements duly audited are presented along
with the Accounts of your Company in this Report. The annual accounts
of subsidiary companies are kept at the Company''s Registered Office and
also at the respective registered offices of the subsidiaries and shall
be made available for inspection to the members/ investors of the
Company/any subsidiary, seeking such information at any point of time.
9. Corporate Governance
A Report on Corporate Governance approved by the Board of Directors of
the Company and a Certificate from the Auditors of the Company is set
out in the Annexure to this Report.
10. Conservation of Energy, Technology Absorption and Foreign Exchange
Earnings
The Company has taken adequate measures to conserve energy and the
Company believes that productivity from all its workforces can be
achieved with interface of latest technology.
The Company is not an industrial undertaking in terms of Section
217(1)(e) of the Companies Act, 1956 read along with Companies
(Disclosure of Particulars in the Report of Board of Directors) Rules,
1988 and hence, particulars regarding conservation of energy,
technology absorption and adaptation are not applicable and hence the
same are not provided.
The information on Foreign Exchange Earnings and Outgo is contained in
the note 16 of schedule 18 Notes on Account, forming part of the
accounts. A separate statement is attached as Annexure I to this
Report.
11. Particulars of Employees U/S 217(2A)
Particulars of the employees of the Company, who were in receipt of
remuneration, which in aggregate exceeds the limit fixed under Section
217(2A) of the Companies Act, 1956 and Companies (Particulars of
Employees) Rules 1975 as amended, forms part of this Directors Report.
However, as per the provisions of Sec. 219 (i)(b)(iv) of the Companies
Act 1956, the Annual Report and accounts excluding the aforesaid
information are being sent to the shareholders of the Company. Any
member interested in obtaining such particulars may write to the
Company Secretary at the Registered Office of the Company for the same.
12. Directors'' Responsibility Statement
Pursuant to the requirement under Section 217(2AA) of the Companies
Act, 1956, the Directors confirm that;
i) In the preparation of the Annual Accounts for the financial year
ended 31st March 2011, the applicable accounting standards had been
followed and there were 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.
13. Fixed Deposits
The Company has not invited or accepted fixed deposits from the public.
14. Employee Stock Option Scheme
During the year 2010-11, the Company allotted 45,610 equity shares of
Rs. 10 each at a premium of Rs. 65 aggregating to Rs. 75 per share on
12th October 2010 and 23,780 equity shares of Rs. 10 each at a premium
of Rs. 90 aggregating to Rs. 100 per share on 13th November 2010 to the
employees of the Company and its subsidiaries.
The Disclosures required to be made under SEBI (Employees Stock Option
Scheme and Employees Stock Purchase Scheme) Guidelines, 1999 is given
as Annexure II to this report including details on the grant, vesting,
exercise, and lapsed under the aforesaid ESOP scheme.
15. Joint Venture
The Company has entered into TWO joint ventures:
(i) Future Parking Private Limited (in which MARG holds 51% of paid-up
share capital), is into joint venture with M/s. Apollo Hospitals
Enterprise Limited for the development of Multi Level Car Parking
(MLCP) at Wallace Garden, Chennai on BOT basis for a period of 20 years
including 2 years of construction period with a provision of right for
development of commercial complex along with the MLCP facility for the
entire BOT period. The Company has received approvals from CMDA,
Corporation of Chennai for the construction of the MLCP and the project
is expected to be commissioned in June 2012.
(ii) Signa Infrastructure India Limited (in which MARG holds 74% of
paid-up share capital), is into a joint venture with Housing and Urban
Development Corporation Limited (HUDCO) for Techno-Financial
collaboration.
16. Corporate Social Responsibility – Approach Towards Society
MARG Parivarthan – (''Chain of Change'') which is MARG''s CSR brand has
executed the following socio-responsibility projects during the year
2010-11.
EDUCATION: Infrastructure support to Govt. Middle School near MARG
Swarnabhoomi and to Tiruvallur Tamil High School – Karaikal, Summer
Coaching Camp – Karaikal, Distribution of school bags to Panchayat
Union Primary School at Kalavakkam and uniforms to Panchayat Union
Middle School at Madayambakkam, etc are some of educational initiatives
which were taken place in 2010-11. Health: 24 hrs First aid centre and
Ambulance Service to the Contract labourers at MARG Swarnabhoomi,
Medical Centre, Village Health Clinics, Eye Camp – Karaikal, General
Medical Camp, Awareness programme on Alcoholism, are some of the health
initiatives which the Company introduced in 2010-11. Basic amenities :
Illuminated three panchayats around MARG Swarnabhoomi with 175 sodium
vapour lamps.
Livelihood: Training on JCB operations & maintenance for youths from
Karaikal, Training for Four-wheeler driving for interested youths from
Kancheepuram & Karaikal, Assistance to women Self Help Groups,
conducting of Tailoring classes, Financial assistance for deserving
women in Lathur Block – Puducherry are some of the livelihood
opportunities assisted to poor by MARG.
Environment : To commemorate the World Environment Day, painting
competition was held on 28th June 2010 for the students of 6th – 8th
std on the theme cool the globe at Panchayat Union Middle school,
Madayambakkam. Children participated with enthusiasm and painted their
ideas on mitigating global warming. Mahayagnam of Tree Sapling
Plantation at MARG Swarnabhoomi, MARG Swarnabhoomi Puduvai Marathon
with around 8500 people going green to save the earth are some of
other CSR initiatives. Other Initiatives:
- MARG Chennai Marathon'' 2010 - The city turned into a runners''
paradise on 29th August 2010 as nearly one lakh participated in the
third edition of the Chennai Marathon.
- MARG Lights out Campaign (10:10:10:10:10) - MARG partnered EXNORA''S
Lights out campaign popularly called ''5 tens Lights Out campaign'' to
motivate people to switch off their lights for 10 minutes on 10.10.10
thereby acknowledging the importance of protecting our planet and our
role in mitigating global warming.
17. Employee Relations
The Directors place on record their deep appreciation of the sincere
and dedicated team work rendered by employees at all levels to meet the
company''s objectives. The employee relations at all projects and other
locations continued to be cordial.
Acknowledgement
The Directors wish to place on record their gratitude to the
shareholders, financial institutions, banks, government authorities,
customers and others connected with the business of the company for
their unstinted co-operation and support.
For and on behalf of the Board of Directors
Place: Chennai G R K Reddy
Date: 29th August, 2011 Chairman & Managing Director
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