manjeera retail holdings pvt ltd Management discussions

MANJEERA RETAIL HOLDINGS PRIVATE LIMITED ANNUAL REPORT 2008-2009 MANAGEMENT DISCUSSION AND ANALYSIS OPERATIONS OF THE COMPANY: Your Company has undertaken the development of 8.295 Acres of APHBs Land at Kukatpally under special purpose vehicle. The total estimated cost of the project as per revised projections is about Rs. 637.8 Crores. The Project deals with construction of about 19.82 Lakhs Sq.ft. of built-up area of office, retail / multiplex / commercial / residential apart from car parking space of about 8.92 Lakh Sq. ft. Your Company has obtained approvals for the land use Conversion, Height Clearances from Airport Authority of India and NOC from DGFS for the properties. US Architects R204 DESIGN, Los Angeles, USA have been appointed for the project designs and they have completed the Concept designs for the Office Complex and the concept designs for the shopping mall is in progress. All the Building approvals for S-2 and S-3 sites are approved by GHMC. In respect of Site S-3, the Company has received the demand for payment of Fee of Rs. 397.53 lacs of which part amount incl. first installment (Rs. 178.80 lacs) is payable immediately and balance in 5 half-yearly installments. We have paid this amount and received the approved plans for entire S-3. In respect of Site S-2 the company has received the demand for payment of fee of Rs. 1339.81 lacs. We have requested GHMC, to consider reduction of the impact fee and payment of fee in 6 half-yearly installments for Multiplex which is under consideration. Environmental Clearances: Documentation is completed and submitted to Andhra Pradesh Pollution Control Board (APPCD). The applications for S-2 and S-3 Sites were examined by State Level Environment Impact Assessment Authority (SEAC) and they recommended for prior EC, subject to submission of approved building plants for the actual number of floors to be constructed and clearance from HMWS & SB. Share Holding: Manjeera Constructions Limited is holding 51% of Equity Capital and the Balance 49% of the Equity Capital is held by Trinity Capital (Six) Limited. In addition to the Equity Capital Trinity Capital (Six) Limited is holding 3,67,647 Cumulative Mandatory Convertible 14% Investor Debentures issued by the Company. The Company had incurred Rs. 20,57,57,209/- as expenditure for the project during the year under review.