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Manjeera Constructions Ltd. - Quarterly/Annual Result Disclosures and Notes dated 31 Dec 2018

Auditor and Management Disclosures and Notes for the quarterly results dated 31 Dec 2018

1. The above unaudited financial results have been reviewed by the Audit Committee and approved by the Board of Directors of the Company in their respective: meetings held on January 28, 2019. The statutory auditor had carried out a limited review of results for the Quarter and Nine months ended December 31,2018.

2. The Company’s business activity falls within a single business segment i.e. ‘Development and sale of residential, retail and commercial space’ in terms of Ind AS 108 on Operating Segments.

3. These unaudited financial results of the Company are prepared in accordance with the recognition and measurement principles laid down in Ind AS Interim Financial Reporting prescribed under Section 133 of the Companies Act, 2013, read with relevant rules issued thereunder.

4. Ind AS 115 Revenue from Contracts with Customers, mandatory for reporting periods beginning on or after April 01, 2018, replaces existing revenue recognition requirements, The application of Ind AS 115 has impacted the Company's accounting for recognition of revenue from real estate projects.

The Company has applied the modified retrospective approach to contracts that were not completed as of 01 April, 2018 and has given impact of Ind AS 115 application by debit to retained earnings as at the said date by Rs. 258.93 Lakhs (net of tax) pertaining to recognition of revenue based on satisfaction of performance obligation at a point of time. Accordingly, the figures for the comparative previous period have not been restated and hence the current period figures are not comparable with the previous period figures. Due to the application of Ind AS 115, revenue from operations is lower by Rs. 1151.96 Lakhs for the quarter ended December 31,2018, Rs.660.14 Lakhs for the quarter ended September 30,2018, Rs. 422.29 Lakhs for the Quarter ended June 30,2018 and Rs. 2234.39 Lakhs for Nine months ended December 31, 2018 and net profit after tax is lower by Rs.179.35 Lakhs for the Quarter ended December 31, 2018, Rs. 98.99 Lakhs for the Quarter ended September 30, 2018 and Rs.67.06 Lakhs for the Quarter ended June 30, 2018 and Rs.345.41 Lakhs for the Nine months ended December 31, 2018, than what it would have been if replaced standards were applicable. Similarly, the basic EPS is lower by Rs.1.43 for the Quarter ended December 31,2018, Rs.0.79 for the Quarter ended September 30,2018, Rs.0.54 for the Quarter ended June 30, 2018 and Rs.2.76 for Nine months ended December 31,2018.

G Yoganand
Chairman & Managing Director