Stakeholders’ Education | Corporate Governance Research | Corporate Governance Score | Proxy Advisory STAKEHOLDERS EMPOWERMENT SERVICES 1 | P AGE SECTOR: REALTY REPORTING DATE: 14 TH AUGUST, 2017 MVL LTD www.mvl.in MVL Ltd NSE Code - MVL TABLE 1 - MARKET DATA (STANDALONE) (AS ON 6 TH AUGUST, 2017) Sector - Realty NSE Market Price (`) 0.50 NSE Market Cap. (₹ Cr.) 32.46 Face Value (`) 1.00 Equity (` Cr.) 60.12 Business Group – N.A. 52 week High/Low (₹) 0.7/0.25 Net worth (₹ Cr.)* 165.51 Year of Incorporation - 2006 TTM P/E (TTM) N.A. Traded Volume (Shares) 18,513 TTM P/BV 0.20 Traded Volume (lacs) 0.09 Registered Office - Source - Capitaline, TTM - Trailing Twelve Months, N.A. – Not Applicable, * As on 30 th September 2016 1201, B, 12 th Floor, COMPANY BACKGROUND Hemkunt Chamber 89, Nehru place, MVL Limited is engaged in the business of real estate builders and developers. The Company operates in residential, commercial, township and retail sectors. The Company's residential projects include initiative for both middle-income groups and lower-middle-income groups. In addition to its project, MVL Coral in Bhiwadi, the Company has also taken initiative in the field of affordable housing with its budget homes project, MVL IndiHomes. Its other residential complex in Bhiwadi is The Palms, targeting the mobile middle-income group. In the Township segment, the Company is focused on launching its project in Yamunanagar, MVL Rivercity, which intends to offer a mix of plots, villas, independent floors, group housing and a star hotel cum club, a mall, as well as a commercial center. In the commercial segment, the Company offers office spaces in Gurgaon that include information technology (IT) park, MVL iPark, as well as an office project, MVL IBC New Delhi – 110 019 Company Website: www.mvl.in Revenue and Profit Performance The revenue of the Company decreased from ₹ 5.70 crores to ₹ 1.69 crores from quarter ending Sep’15 to quarter ending Sep’16. The Company made a profit of ₹ 1.12 crores in quarter ending Sep’16 vis-a-vis making a profit of ₹ 0.02 crores in quarter ending Sep’15. Source- Money Control Performance vis-à-vis Market TABLE 2- Returns 1-m 3-m 6-m 12-m MVL Ltd -9.09% -20.00% -9.09% 25.00% Nifty 2.46% 6.53% 14.22% 16.37% NIFTY REALTY 2.63% 5.42% 46.88% 37.23% Source- Capitaline/NSE - 0.50 1.00 1.50 2.00 Aug 16 Sep 16 Oct 16 Nov 16 Dec 16 Jan 17 Feb 17 Mar 17 Apr 17 May 17 Jun 17 Jul 17 MVL Ltd NIFTY NIFTY REALTY 1.69 0.20 5.70 1.12 -4.04 0.02 -5 0 5 10 Sep'16 Mar'16 Sep'15 Quarterly revenue and Profit (₹ CRORE) Revenue Profit
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STAKEHOLDERS EMPOWERMENT SERVICES MVL LTD · 2017. 8. 23. · homes project, MVL IndiHomes. Its other residential complex in Bhiwadi is The Palms, targeting the mobile middle-income
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Audit Qualifications in FY 2015-16, FY 2014-15 & FY 2013-14
Basis for Qualified Opinion FY 2015-16:
“A] Note No. 39 in respect of non-provision of interest with retrospective effect from 01.04.2014 (vide Board Resolution dated
17.02.2015) on loans from banks and financial institutions declared as Non-Performing Account (NPA). As a result of non-
provision of said interest of ₹ 40.97 Cr (previous year ₹ 32.39 Cr) payable during the year on the said NPA Accounts: -
• Revenue from operation has been understated by ₹ 18.99 Cr- (previous year ₹ 26.15 Cr) arising out of percentage of completion (POC) method of accounting, due to non-capitalization of interest directly attributable to project work-in-progress.
• Loss from operation has been understated by ₹ 21.98 Cr (previous year ₹ 6.25 Cr)
B] Note No. 40 regarding non-provision of advances to group companies considered doubtful of recovery and the lonee
companies do not have the capacity / net-worth to repay the principal / or the interest charged thereon.”
Management Response for FY 2015-16:
“A] The Board is of the opinion that the loan account with the banks and financial institutions which are NPA, are under advanced
stage of settlement with these lenders. The lending banks and financial institutions are not providing for interest since the date
of NPA on principles of prudence. Following the same principle and the expectations to get interest waivers on settlement, the
Company has also not provided for such interest in books of accounts.
B] The said advances to the group companies were given in lieu of loss suffered by these companies on account of guarantees
provided to the lenders on our behalf. However, these advances are recoverable/ adjustable and that no provision is necessary
at this stage. The Board is of the view that the Company is hopeful for their recovery during the ensuing year, so no provision
has been created.”
Basis for Qualified Opinion FY 2014-15:
“1. Note No. 37 in respect of non-availability of confirmations in respect of some debit and/or credit balances. In the absence of
such confirmations, any provision to be made for the adverse variation in carrying amounts of these balances, are not quantified,
as well as the quantum of adjustment if any, required to be made remain unascertained.
2. Note No. 38 in respect of non-provision of penal interest on loans declared as NPA. Liability for penal interest payable has also
not been quantified on account of uncertainty and discretionary nature of penal interest, if any payable.
www.mvl.in TABLE 4: BOARD PROFILE (AS PER ANNUAL REPORT 2015-16)
Regulatory Norms Company
% of Independent Directors on the Board 50% 50%
% of Promoter Directors on the Board - 16.67%
Number of Women Directors on the Board At least 1 1
Classification of Chairman of the Board - No Chairman*
Is the post of Chairman and MD/CEO held by the same person? - No
Average attendance of Directors in the Board meetings (%) - 65.56%
*The Company has stated in its Annual Report-Corporate Governance Report that “The present strength of the Board of Directors of the Company is six which
including Chairman.” However, the Company not disclosed the name of the said Chairman.
Composition of Board: As per Regulation 17(1)(b) of the Listing Regulations, 2015, the Company should have at least 50%
Independent Directors as the Company has no Chairman of the Board. The Company has 50% of Independent Directors as per
Annual Report 2015-16 and hence, it meets the regulatory requirements.
Board Diversity: The Company has 6 directors out of which 5 are male and 1 is female.
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