Mar 31, 2023
Your Directors have pleasure in presenting the Seventeenth Annual Report together with the audited financial statements of the Company for the financial year ended March 31, 2023.
The highlights/summary of the consolidated financial results of the Company for the financial year ended March 31, 2023, are as under:
Amount (Rs. in Million) |
||
Particulars |
Year Ended March 31, 2023 |
Year Ended March 31, 2022 |
Profit before Depreciation / Amortisation Less: Depreciation / Amortisation Profit before tax & exceptional items Exceptional items Profit before tax Less: Provision for Tax Profit after Tax before Non-controlling interest Non-controlling interest Net Profit for the year |
(5,117.50) 121.30 (5.238.80) 387.90 (5,626.70) 449.20 (6,075.90) 7.90 (6.083.80) |
(148.40) 121.50 (269.90) (269.90) 1,102.90 (1,372.80) (5.60) (1,367.20) |
The highlights/summary of the standalone financial results of the Company for the financial year ended March 31, 2023, are as under: Amount (Rs. in Million) |
||
Particulars |
Year Ended March 31, 2023 |
Year Ended March 31, 2022 |
Profit before Depreciation / Amortisation Less: Depreciation / Amortisation Profit before tax Less: Provision for Tax Profit after Tax |
(3,940.10) 22.20 (3,962.30) 5.10 (3,967.40) |
(533.90) 18.70 (552.60) 11.50 (564.10) |
The Company has not transferred any amount to Reserves during the financial year 2022-23.
Your Company is a prominent real estate developer in the Mumbai Metropolitan Region ("MMR") and the National Capital Region ("NCR") of India. It has a diversified presence in residential real estate developments across the Mid-income, Premium and Luxury price categories. Geographically, the strategic focus is in key markets of MMR and NCR.
As of March 31, 2023, inventory amounts to a total Saleable Area of 12.4 million square feet, out of which 9.1 million square feet is located in the MMR region and 3.3 million square feet was located in the NCR & Other region. Your Company has 11 residential projects and 4 commercial projects in MMR, NCR, Jodhpur, Vadodara, Vizag in various stages of Completion.
Your Company''s core competency lies in managing the real estate value chain as we have in-house capabilities to deliver a project from conceptualization to completion. It believes that a significant competitive differentiator for us has been our track record in delivering strategically-located large scale projects with high quality construction and sustainable practices. The technical and design team aim to ensure efficient and quality developments. It believes in the human capital and technology-enabled systems to successfully manage large construction projects with timely and quality execution and delivery and years of on the ground industry experience. Your Company''s emphasis on safety in all phases of construction. It believes that its understanding of the relevant real estate market, positive perception, innovative design and marketing and branding techniques enable us to attract customers.
Business Achievements & Operational Highlights:
⢠The Company successfully placed QIP of '' 865 Cr. (USD 114mn) @ '' 101.10 per share, trading of the new shares commenced on April 18, 2022.
⢠Consolidated gross debt of the company '' 256 Cr, Cash & cash equivalents at '' 608 Cr; Net cash positive of '' 352 Cr post debt as on March 31, 2023. Rating agency has assigned Long-term rating of "AA-" and Short-term rating of "A1 ".
⢠Total Gross Collections for FY 22-23 is '' 1,746 Cr., with Pre-sales of '' 958 Cr.
⢠Total Net Surplus from completed inventory and projects that are currently ongoing stands at '' 3,284 Cr. as at March 31,
2023.
⢠Total sold receivables and completed/near completed inventory in hand is '' 2,774 Cr. as at March 31, 2023 and changing buyer preference towards completed inventory with OC provides a distinct advantage to the Company.
⢠Company has 1,846 acres of fully paid land bank spread across Mumbai, NCR and Chennai as on March 31, 2023. As
Government, positions India as an attractive manufacturing destination, 1,424 acres of additional Nashik SEZ land can
provide a significant impetus to asset monetization.
⢠Under-construction & Planned projects have an estimated surplus of '' 4,808 Cr., as on March 31, 2023.
MERGER OF EMBASSY GROUP ENTITIES INTO INDIABULLS REAL ESTATE FACES DELAY
Subsequent to the financial year 2022-23, the Hon''ble National Company Law Tribunal ("NCLT"), Chandigarh Bench, vide its order dated May 9, 2023, has withheld the Composite Scheme of Amalgamation of NAM Estates Private Limited ("NAM") and Embassy One Commercial Property Developments Private Limited ("EOCPDPL"), both Embassy Group entities, with the Company, under Section 230-232 of the Companies Act, 2013 read with the rules framed thereunder, as amended, and other applicable regulations and provisions ("Scheme"). The NCLT vide its order dated May 9, 2023, had raised certain concerns based on the objections cited by Income Tax Department to the Scheme.
It is pertinent to note that the said Scheme has already been approved by the shareholders of the Company, at the NCLT convened meeting held on February 12, 2022, with 99.99% favorable votes and has also received approvals from other regulators. Also, Hon''ble NCLT, Bengaluru Bench, who has jurisdiction over NAM and EOCPDPL, vide its order dated April 22, 2022, has already approved and sanctioned the said Scheme.
The Company has filed an appeal before Hon''ble National Company Appellate Law Tribunal ("NCLAT"), New Delhi Bench, for which the next date of hearing is September 8, 2023.
RE-CLASSIFICATION OF PROMOTER AND PROMOTER GROUP
During the financial year 2022-23, the Stock Exchanges vide their letters dated June 2, 2022 approved the application submitted by the Company, on the request of "erstwhile Promoter and Promoter group" of the Company ("Outgoing Promoters"), for their reclassification from ''Promoter and Promoter Group'' category to ''Public'' category in accordance with Regulation 31A of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Consequently, w.e.f. June 2, 2022, the Outgoing Promoters (erstwhile ''Promoter and Promoter group'' of the Company) were reclassified as ''Public'' shareholders.
The Company does not have any identified promoter and the affairs of the Company are being controlled and managed professionally by its Board of Directors and the management team.
QUALIFIED INSTITUTIONS PLACEMENT
During the financial year 2022-23, pursuant to the approval of the Board of Director and shareholders of the Company, at their respective meetings held on December 22, 2021 and February 7, 2022, the Company on April 12, 2023, issued and allotted an aggregate of 8,55,59,435 fully paid equity shares of face value '' 2 each of the Company ("Equity Shares") to QIBs at the issue price of '' 101.10 per Equity Share (including a premium of '' 99.10 per Equity Share), at a discount of '' 5.28 per Equity Share i.e. 4.96% to the floor price of R 106.38 per Equity Share, aggregating to aggregating to '' 8650.06 million. Consequent to the said allotment, the paid-up Equity Share capital stood increased to '' 1,08,33,50,662 consisting of 54,16,75,331 Equity Shares of '' 2 each.
CHANGE IN REGISTERED OFFICE OF THE COMPANY
During the financial year 2022-23, the Registered Office of the Company stood shifted from ''Plot No. 448-451, Udyog Vihar, Phase-V, Gurugram - 122016, Haryana'' to ''Office No 01-1001, WeWork, Blue One Square, Udyog Vihar Phase 4 Rd, Gurugram -122016, Haryana'', with effect from April 22, 2022.
DIVESTMENT OF STAKE IN CERTAIN SUBSIDIARIES OF THE COMPANY
During the financial year 2022-23, the Company has divested its entire stake in its following subsidiaries to independent third-party buyers:
(a) Chloris Real Estate Limited (which owns small land parcel at Sector 99, Gurugram, Haryana), 100% stake of which was held by the Company through another subsidiary i.e. Nilgiri Infrastructure Development Limited; and
(b) Airmid Developers Limited, Mariana Developers Limited, Albina Properties Limited and Flora Land Development Limited, (which collectively own the land parcel at Village Pawala Khusrupur, Sector 106, Tehsil and District Gurugram, Haryana); and
(c) Juventus Estate Limited (alongwith its wholly owned subsidiary Milky Way Buildcon Limited) and Mabon Properties Limited (which collectively own the land parcel admeasuring 35 acres approx. at Sector 104, Dwarka Expressway, Gurugram, Haryana).
The aggregate consideration value received by the Company, through above disinvestments was '' 8368.5 million DIVIDEND / TRANSFER TO IEPF
In view of the business requirements of the Company, the Board of Directors of the Company has not recommended any dividend for financial year 2022-23.
During the financial year 2022-23, the Company was not required to transfer any amount in Investor Education and Protection Fund by the Company.
Further, in compliance with Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (hereinafter referred as "SEBI LODR"), the Dividend Distribution Policy of the Company is available on the website of the Company at web link https://www.indiabullsrealestate.com/policies/.
During the financial year 2022-23, the Company has fully redeemed all its outstanding Non-Convertible Debentures ("NCDs") aggregating to '' 3,750 million, which were listed on Wholesale Debt Market (WDM) segment of BSE Limited. As on March 31, 2023, there were no outstanding NCDs.
DIRECTORS AND KEY MANAGERIAL PERSONNEL
During the financial year 2022-23, upon the recommendation of the Nomination and Remuneration Committee, the Board of the Company was re-constituted with the following appointments:
(a) Ms. Supriya Bhatnagar (DIN: 08731453), as an Independent Director, for a period of 2 years w.e.f. August 12, 2022, not liable to retire by rotation, which was duly approved by the members of the Company at the 16th Annual General Meeting of the Company held on September 30, 2022, by way of Special Resolution.
(b) Mr. Sachin Shah (DIN: 00387166), as an Executive Director (WTD) & Key Managerial Personnel (KMP) w.e.f. February 27, 2023, for a period of 5 years, liable to retire by rotation.
(c) Mr. Javed Tapia (DIN: 00056420), as an Independent Director, for a period of 3 years, w.e.f. February 27, 2023, not liable to retire by rotation, Mr. Shyamm Mariwala (DIN: 00350235) and Ms. Tarana Lalwani (DIN: 01940572), as Independent Directors, for a period of 3 years, w.e.f. March 1, 2023, not liable to retire by rotation.
Subsequent to the financial year 2022-23, the appointments of (a) Mr. Sachin Shah, as an Executive Director (WTD) and KMP of the Company; and (b) Mr. Javed Tapia, Mr. Shyamm Mariwala and Ms. Tarana Lalwani, Independent Directors of the Company, were duly approved by the members of the Company, by way of special resolutions, passed through Postal Ballot on May 18, 2023.
Further, during the financial year 2022-23, (a) Justice Gyan Sudha Misra (Retd.) (DIN: 07577265), Independent director of the Company, resigned from her position, w.e.f. April 26, 2022, due to personal reasons and to focus on her existing commitments. Justice Misra had confirmed in her resignation letter that there are no other reasons for her resignation; (b) Mr. Gurbans Singh (DIN: 06667127), relinquished his position of Jt. Managing Director & Key Managerial Personnel of the Company, w.e.f. August 12, 2022, due to his other preoccupations and commitments and continued as a Non-Executive, Non-Independent Director of the Company till March 4, 2023; (c) Mr. Mehul Johnson (DIN: 00016075), was re-designated as Managing Director from Jt. Managing Director w.e.f. September 6, 2022 and thereafter relinquished his position of Managing Director & Key Managerial Personnel of the Company w.e.f. February 27, 2023, due to his personal reasons & existing commitments and continued as a Non-Executive, Non-Independent Director of the Company till March 31, 2023; and (d) Mr. Gurinder Singh (DIN: 08183046), Independent director of the Company, resigned from his position, w.e.f. March 23, 2023, due to health issues. Mr. Singh had confirmed in his resignation letter that there are no other reasons for his resignation.
Further, during the financial year 2022-23, Mr. Anil Mittal, Chief Financial Officer & KMP, resigned from the office w.e.f. August 12, 2022, and in his place the Board had appointed Mr. Saurabh Garg as Chief Financial Officer & KMP of the Company w.e.f. September 6, 2022.
Further, subsequent to the financial year 2022-23, Ms. Supriya Bhatnagar, Independent director of the Company, resigned from her position w.e.f. May 26, 2023, due to personal reasons and to focus on her other commitments. Ms. Bhatnagar had confirmed in her aforesaid letter that there are no other reasons for her resignation. Also, Mr. Ravi Telkar, Company Secretary and Mr. Saurabh Garg, Chief Financial Officer, both designated as KMPs of the Company, resigned from their respective positions w.e.f. April 30, 2023 and May 16, 2023, respectively and the Board, in their place, has appointed Mr. Chandra Shekher Joshi as Company Secretary and Mr. Manish Kumar Sinha as Chief Financial Officer, both designated as KMPs of the Company w.e.f. May 1, 2023 and May 17, 2023, respectively.
As on date of this report, the Board comprises following Directors:
1. Mr. Kulumani Gopalratnam Krishnamurthy (DIN: 00012579), Independent Director & Chairman of the Company.
2. Mr. Sachin Shah (DIN: 00387166), Executive Director & Key Managerial Personnel designated as Whole-time Director.
3. Mr. Javed Tapia (DIN: 00056420), Independent Director.
4. Mr. Shyamm Mariwala (DIN: 00350235), Independent Director.
5. Ms. Tarana Lalwani (DIN: 01940572), Independent Director.
6. Mr. Praveen Kumar Tripathi (DIN: 02167497), Independent Director.
Further, Mr. Manish Kumar Sinha is the Chief Financial Officer (CFO) and Mr. Chandra Shekher Joshi is the Company Secretary (CS) both designated as Key Managerial Personnel(s) of the Company.
Further, in accordance with the provisions of the Companies Act, 2013, and in terms of the Articles of Association of the Company, Mr. Sachin Shah (DIN: 00387166), an Executive Director designated as Whole-time Director, is liable to retire by rotation at the ensuing 17th Annual General Meeting of the Company, and being eligible has offered himself for reappointment.
The brief resume of the Director proposed to be re-appointed, nature of his expertise in specific functional areas and name of the Companies in which he holds directorships and memberships/chairmanships of Board Committees and other requisite information, are provided in the Notice convening the 17th Annual General Meeting of the Company.
All the present Independent Directors of the Company are persons of integrity and possess requisite knowledge, expertise, experience and skills, for discharging their duties effectively as Independent Directors, and have given confirmation that they meet the criteria of independence laid down under Section 149(6) of the Companies Act, 2013, and under Regulation 16(1)(b) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (SEBI LODR). Their appointment letter(s) shall be open for inspection by the members at the registered office of the Company, in terms of applicable provisions of the Companies Act, 2013.
SHARE CAPITAL / STOCK OPTIONS / SAR
As stated above under the section ''Qualified Institutions Placement'', during the financial year 2022-23, the Company had issued and allotted an aggregate of 8,55,59,435 fully paid equity shares of face value '' 2 each of the Company, to QIBs, as a result the paid-up Equity Share capital stood increased to '' 1,08,33,50,662 consisting of 54,16,75,331 equity shares of '' 2/- each.
Further, pursuant to and in terms of shareholders authorization dated March 17, 2020, the Company in accordance with erstwhile Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014, as amended from time to time (hereinafter referred to as "SBEB Regulations"), had created an employee''s welfare trust titled "Indiabulls Real Estate Limited -Employees Welfare Trust" (the "Trust") to efficiently manage the ''Indiabulls Real Estate Limited - Employee Stock Option Scheme - 2010'' ("Scheme") and to acquire, purchase, hold and deal in fully paid-up equity shares of the Company from the secondary market, for the purpose of administration and implementation of the Scheme, as may be permissible under the SBEB Regulations.
The disclosures required to be made under Securities and Exchange Board of India (Share Based Employee Benefits and Sweat Equity) Regulations, 2021 and the Companies Act, 2013 read with Rule 12 of the Companies (Share Capital and Debentures) Rules, 2014, have been placed on the website of the Company http://www.indiabullsrealestate.com/.
During the financial year 2022-23, the Company has not accepted any deposits from the public, falling within the ambit of Chapter V of the Companies Act, 2013 and the Companies (Acceptance of Deposits) Rules, 2014, therefore the disclosures required in terms of Rule 8 of the Companies (Accounts) Rules, 2014, are not required to be given.
The Equity Shares (ISIN No.: INE069I01010) of the Company, continue to remain listed at BSE Limited and National Stock Exchange of India Limited. The listing fees payable to both the exchanges for the financial year 2023-24 have been paid. The GDRs issued by the Company continue to remain listed on Luxembourg Stock Exchange.
(a) Statutory Auditors
M/s Agarwal Prakash & Co., Chartered Accountants (FRN: 005975N), the Statutory auditors of the Company were appointed by the members at their Fourteenth Annual General Meeting held on September 28, 2020, for a period of five consecutive years i.e. until the conclusion of the Nineteenth AGM of the Company.
The Auditors'' Reports submitted by the Auditors of the Company, on both standalone and consolidated financial statements of the Company for the financial year 2022-23, are self-explanatory and therefore do not call for any further explanation. The Auditors'' Reports does not contain any qualification, reservation, adverse remark or disclaimer. No fraud has been reported by the Auditors of the Company in terms of the provisions of Section 143(12) of the Companies Act, 2013, and Rules framed thereunder.
(b) Secretarial Auditors & Secretarial Audit Report
Pursuant to the provisions of Section 204 of the Companies Act, 2013 read with the rules made thereunder, the Company had appointed M/s S. Khandelwal & Co., a firm of Company Secretaries in practice as its Secretarial Auditors, to conduct the secretarial audit of the Company for the financial year 2022-23. The Company has provided all assistance, facilities, documents, records and clarifications etc. to the Secretarial Auditors for conducting their audit. The Secretarial Audit Report, along with Secretarial Compliance Report, as prescribed by SEBI, for the financial year 2022-23, are annexed as Annexure 1(i) and Annexure 1(ii) respectively, and forms part of this Report. The Comments of the Board on observations of Secretarial Auditors of the Company in their Report for the financial year 2022-23, are indicated below.
(i) In terms of regulation 17(1) of Listing Regulations, it is noted that the Company did not have a Women Independent Director on its Board from April 27, 2022 till August 11, 2022. However, the Company had appointed Ms. Supriya Bhatnagar, as an Independent Women Director (Additional) w.e.f. August 12, 2022 and complied with the requirements of Regulation 17 of the Listing Regulations.
Board''s comment: During the financial year 2022-23, Justice Gyan Sudha Misra (Retd.), Independent director of the Company, resigned from her position, w.e.f. April 26, 2022, due to personal reasons and to focus on her existing commitments. Post her resignation, the Company was in the process of looking for a suitable person who can be appointed as Independent Women Director but could not find one within the timelines prescribed in SEBI (LODR) Regulations, 2015. However, the Board on the recommendations of the Nomination & Remuneration Committee, had on August 12, 2023, appointed Ms. Supriya Bhatnagar, as an Independent Women Director (Additional) and complied with the requirements of Regulation 17 of the Listing Regulations. The Company will avoid such instance in future.
(ii) NSE vide its letter dated November 21, 2022 and BSE vide an e-mail dated November 21, 2022, imposed a penalty of INR 100,300/- (inclusive of GST) each, on the Company, for non-compliance with the requirements pertaining to the composition of the Board including failure to appoint woman Independent Director on the Board of the Company in terms of Regulation 17(1) of Listing Regulations. The Company had paid penalty of INR 100,300/- (inclusive of GST) each for the same.
Board''s comment: The Company has paid penalty of INR 100,300/- (inclusive of GST) each, to NSE and BSE, for noncompliance with the requirements pertaining to the composition of the Board including failure to appoint Independent Women Director on the Board of the Company in terms of Regulation 17(1) of SEBI (LODR) Regulations, 2015. Relevant clarification has been given in the point (i) above.
The Secretarial Audit Reports of M/s Indiabulls Infraestate Limited, M/s Lucina Land Development Limited, M/s Athena Infrastructure Limited and M/s Ceres Estate Limited, Indian Material subsidiary(ies) of the Company, are annexed as Annexure 1(iii), 1(iv), 1(v) and 1(vi).
No fraud has been reported by the Auditors of the Company in terms of the provisions of Section 143(12) of the Companies Act, 2013, and Rules framed thereunder.
The requirement of maintenance of cost records, as specified by the Central Government under sub-section (1) of section 148 of the Companies Act, 2013, read with applicable Rules, is not applicable on the Company, and accordingly, such accounts and records have not been made and maintained by the Company.
CORPORATE SOCIAL RESPONSIBILITY
As part of its initiatives under "Corporate Social Responsibility (CSR)", the Company has been undertaking projects in the areas specified under its CSR Policy (available on your Company''s website at web link https://www.indiabullsrealestate.com/policies/) in accordance with Schedule VII of the Companies Act, 2013, read with the relevant Rules. In terms of the applicable provisions of the Companies Act 2013, read with relevant Rules, since the Company had average net losses during immediately preceding three financial years, the Company was not required to contribute any amount towards CSR activities during the financial year 2022-23. An Annual Report on CSR, containing relevant details, is annexed as Annexure 2, forming part of this Report.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
Pursuant to Regulation 34 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements), Regulations, 2015, as amended ("SEBI LODR Regulations") with the Stock Exchanges, Management''s Discussion and Analysis Report, for the year under review, is presented in a separate section forming part of this Annual Report.
Pursuant to Regulation 34 of the SEBI LODR Regulations with the Stock Exchanges, a separate section on Corporate Governance Practices followed by the Company, together with a certificate from a practicing Company Secretary confirming compliance, is presented in a separate section forming part of this Annual Report.
BUSINESS RESPONSIBILITY AND SUSTAINABILITY REPORT
Pursuant to Regulation 34 of the SEBI (LODR) Regulations, a Business Responsibility and Sustainability Report (BRSR), describing the initiatives taken by the Company from environmental, social and governance perspective is presented in a separate section forming part of this Annual Report.
DIRECTORS'' RESPONSIBILITY STATEMENT
To the best of their knowledge and belief and according to the information and explanations obtained by them, your Directors, in terms of Section 134 of the Companies Act, 2013, hereby states:
a) that in the preparation of the annual financial statements for the year ended March 31, 2023, the applicable accounting standards had been followed along with proper explanation relating to material departures, if any;
b) that such accounting policies as mentioned in the Notes to the Financial Statements have been selected and applied consistently and judgments and estimates have been made that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company, as at March 31, 2023 and the profit and loss of the Company for the year ended on that date;
c) that proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013, for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities;
d) that the annual financial statements have been prepared on a going concern basis;
e) that proper internal financial controls are in place and that such financial controls are adequate and are operating effectively; and
f) that systems to ensure compliance with the provisions of all applicable laws are in place and are adequate and operating effectively.
In terms of Sections 92(3) and 134(3) of the Companies Act, 2013, the Annual Return of the Company as on March 31, 2023, is available on the Company''s website at web link https://www.indiabullsrealestate.com/agm-notice/.
During the financial year 2022-23, 7 (Seven) Board Meetings were convened and held. The details of such meetings are given in Corporate Governance Report forming part of this Annual Report. The intervening gap between these meetings was within the period prescribed under the Companies Act, 2013. The notice and agenda including all material information and minimum information required to be made available to the Board under SEBI LODR Regulations, were circulated to all directors, well within the prescribed time, before the meeting or placed at the meeting with the permission of majority of Directors (including the Independent Directors). During the financial year 2022-23, a separate meeting of the Independent Directors was held on November 11, 2022, without the presence of Non-Independent Directors and the members of the Company Management.
PERFORMANCE EVALUATION OF THE BOARD, ITS COMMITTEES AND DIRECTORS
The Nomination & Remuneration Committee (NRC) of the Board reassessed the framework, methodology and criteria for evaluating the performance of the Board as a whole, including Board committee(s), as well as performance of each director(s) and confirms that the existing evaluation parameters are in compliance with the requirements as per SEBI guidance note dated January 5, 2017 on Board evaluation. The existing parameters includes effectiveness of the Board and its committees, decision making process, Directors/members participation, governance, independence, quality and content of agenda papers, team work, frequency of meetings, discussions at meetings, corporate culture, contribution, role of Chairman and management of conflict of interest. Basis these parameters, the NRC had reviewed at length the performance of each director individually and expressed satisfaction on the process of evaluation and the performance of each Director. The performance evaluation of the Board as a whole and its committees, namely Audit Committee, Nomination & Remuneration Committee and Stakeholders'' Relationship Committee, as well as the performance of each director individually, including the Chairman, was carried out by the entire Board of Directors. The performance evaluation of Non-independent Directors and the Board as a whole was carried out by the Independent Directors at their meeting held on. The Directors expressed their satisfaction with the evaluation process.
Also, the Chairman or Executive Director of the Company, on a periodic basis, has had one-to-one discussion with the directors for their views on the functioning of the Board and the Company, including discussions on level of engagement and contribution, independence of judgment, safeguarding the interest of the Company and its minority shareholders and implementation of the suggestions offered by Directors either individually or collectively during different board/committee meetings.
POLICY ON APPOINTMENT OF DIRECTORS & THEIR REMUNERATION
The Board has framed a policy for selection and appointment of Directors, Senior Management and their remuneration. The Remuneration Policy is stated in the Corporate Governance Report forming part of this Annual Report.
LOANS, GUARANTEES OR INVESTMENTS
During the financial year 2022-23, in terms of the provisions of Section 186 (1) of the Companies Act, 2013, the Company did not make any investments through more than two layers of investment companies. The Company''s investment/loans/guarantees, during the financial year 2022-23, were in compliance with the provisions of section 186 of the Companies Act, 2013, particulars of which are captured in financial statements of the Company, wherever applicable and required, forming part of this Annual Report.
During the financial year 2022-23, no materially significant related party transaction was entered by the Company with its Promoters, Key Managerial Personnel or other designated persons which may have potential conflict with the interest of the Company at large. Details of all related party transactions are disclosed in the financial statement of the Company forming part of this Annual Report.
None of the transactions with related parties is material transaction and/or transaction which is not at Arm''s length, requiring disclosure pursuant to Section 134(3)(h) of the Act read with Rule 8(2) of the Companies (Accounts) Rules, 2014. Therefore, the information required in prescribed form AOC - 2 is not applicable. The Policy on materiality of Related Party Transactions and also on dealing with such transactions is available on the website of the Company https://www.indiabullsrealestate.com/wp-content/ uploads/2022/05/IBREL-Policy-for-Dealing-with-Related-Party-Transactions-23.04.2019.pdf.
INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY
The Company has an elaborate system of internal controls commensurate with its size, scale and operations, which also covers financial controls, financial reporting, fraud control, compliance with applicable laws and regulations etc. Regular internal audits are conducted to check and to ensure that responsibilities are discharged effectively. The Internal Audit Department monitors and evaluates the efficacy and adequacy of internal control systems in the Company, its compliance with regulatory directives, efficacy of its operating systems, adherence to the accounting procedures and policies of the Company and its subsidiaries. Wherever required, the internal audit efforts are supplemented by audits conducted by specialized consultants/audit firms. All financial and audit control systems are also reviewed by the Audit Committee of the Board of Directors of the Company. Based on the report of the internal auditors, process owners undertake corrective actions in their respective areas and thereby strengthen the controls.
MATERIAL CHANGES AND COMMITMENTS
Other than those disclosed in this report, there are no material changes and commitments, affecting the financial position of the Company, which has occurred between the end of the Financial Year of the Company i.e. March 31, 2023 and the date of this Report.
Further, no significant and material orders were passed by the regulators or courts or tribunals, impacting the going concern status and Company''s operations in future.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO
The information on conservation of energy, technology absorption and foreign exchange earnings and outgo, is as under:
A. Conservation of Energy
The Company operations do not account for substantial energy consumption. However, the Company is taking all possible measures to conserve energy. As an ongoing process, the followings are (i) the steps taken or impact on conservation of energy; (ii) the steps taken by the Company for utilising alternate sources of energy; and (iii) the capital investment on energy conservation equipment.
The Company has been able to reduce energy consumption by using star rated appliances where possible and also through the replacement of CFL lights with LED lights. Monitoring resource usage, improved process efficiency, reduced waste generation and disposal costs have also supported the cause. The Company continues to explore collaboration with contractors/partners that ensure conservation of energy and resources. On this front, the Company promotes the use of innovative technologies such as green buildings and other energy efficient measures for construction of their projects. Some of the best practices undertaken for the conservation of energy are:
1) Comprehensive energy-modeling during the design stage to achieve energy conservation while meeting the functional requirements for both residential and commercial projects,
2) Using passive techniques for cooling such as optimum building envelope design, wherever possible,
3) Selecting climate appropriate material for the building,
4) Using energy saving LED light fixtures,
5) Conservation of energy at all of its offices by replacing lighting system with LEDs, installation of star energy conservation air conditioning systems, installation of automatic power controllers to save maximum demand charges and energy, installation of TFT monitors that saves power, and periodic Training sessions for employees on ways to conserve energy in their individual roles.
Solar energy is the alternate source of energy integrated/being integrated into our projects and their operations. As a part of the green building guidelines followed by us, company''s endeavor is to utilize solar energy to meet the energy.
B. Technology Absorption
The Company has implemented best of the class applications to manage and automate its business processes to achieve higher efficiency, data integrity and data security. It has helped it in implementing best business practices and shorter time to market new schemes, products and customer services. The Company''s investment in technology has improved customer services, reduced operational costs and development of new Business opportunities.
I. The efforts made towards technology absorption:
The Company is investing in cutting edge technologies to upgrade its infrastructure set up and innovative technical solutions, thereby increasing customer satisfaction & employee efficiency. The Company''s endeavored is to use upgraded, advance and latest technology machines, equipment etc, which improves customer delight and employee efficiency. Some of the initiatives are: Deployment of machines to substitute manual work partly or fully, the improvement of existing or the development/ deployment of new construction technologies to speed up the process and make construction more efficient, using LED lighting for common areas of our developments and in our office buildings, using timers for external lighting and basement lighting in some of our projects for switching lights on/ off as per peak and non-peak hours. The Company promotes the use of electronic means of communication with its shareholders by sending electronic communication for confirmation of payments and other similar purposes. The Company also encourages the use of electronic mode of communications to and from all its stakeholders. Soft copies of the annual report(s) along with the notice convening the Annual General Meeting(s) were sent to its shareholders so as to minimize the usage of paper.
II. The benefits derived like product improvement, cost reduction, product development or import substitution:
The Company''s approach in adopting technology has improved customer satisfaction, reduced operational cost and created new opportunities for development of businesses. Also, there is cost reduction in the administration and construction, through utilisation of scheduling and planning, efficient practices, prefabricated components, etc. Some of the initiatives are: In-depth planning of construction activities to achieve shorter time-lines and reduced consumption of man and material at site, organising/scheduling/ structuring the work in tandem with job descriptions to ensure efficiency, engaging specialised sub-contractors/ consultants to complete tasks efficiently, introducing rules and regulations based on national and international standards and internal classifications, monitoring performance at projects and administrative offices.
III. Information regarding imported technology (imported during last 3 years) and expenditure incurred on Research & Development:
Not Applicable, since the Company has not imported any technology or incurred expenses of research & Development, during such period.
C. Foreign Exchange Earnings and Outgo
During the financial year 2022-23, there were no foreign exchange earnings (last year Nil). Details of the foreign exchange outgo, are given below:
Amount ('' in million) |
||
Particulars |
FY 2022-23 |
FY 2021-22 |
Subscription Charges |
0.10 |
0.20 |
Technical Support Expenses |
0.40 |
- |
Professional & Consultancy Charges |
18.40 |
7.50 |
Total |
18.90 |
7. 70 |
Pursuant to the applicable provisions of the Companies Act, 2013 and Regulation 21 of SEBI LODR Regulations, the Company has formulated robust Business Risk Management framework to identify and evaluate business risks and opportunities. This framework seeks to create transparency, minimize adverse impact on its business objectives and enhance its competitive advantage. It defines the risk management approach across the Company and its subsidiaries at various levels including the documentation and reporting. At present, the Company has not identified any element of risk which may threaten its existence.
Based on the Market Capitalisation as on March 31, 2023, the Company, continuing to be amongst the Top 1000 listed entities, does have a duly constituted Risk Management Committee, details of which are disclosed in the Corporate Governance Report forming part of this Annual Report.
Pursuant to the applicable provisions of the Companies Act, 2013 read with Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, disclosures on Managerial Remuneration are provided in ''Annexure - 3'' forming part of this Report. In terms of the provisions of Section 136(1) of the Companies Act, 2013 read with the said Rules, the Board''s Report is being sent to all the shareholders of the Company excluding the annexure on the names and other particulars of employees, required in accordance with Rule 5.2 of said rules, which is available for inspection by the members, subject to their specific written request, in advance, to the Company Secretary. The inspection is to be carried out at the Company''s Registered Office at Gurugram, during business hours on working days of the Company up to date of ensuing Annual General Meeting.
FAMILIARISATION PROGRAMME FOR NON-EXECUTIVE DIRECTORS
Non-Executive Directors are familiarised with their roles, rights and responsibilities in the Company as well as with the nature of industry and business model of the Company through presentations about the Company''s strategy, business model, product and service offerings, customers'' & shareholders'' profile, financial details, human resources, technology, facilities, internal controls and risk management, their roles, rights and responsibilities in the Company. The Board is also periodically briefed on the various changes, if any, in the regulations governing the conduct of non-executive directors including independent directors. The details of the familiarization programmes have been hosted on the website of the Company and can be accessed on the link: https://www. indiabullsrealestate.com/investor-relations/.
Pursuant to Section 129 of the Companies Act, 2013, the Company has prepared its Consolidated Financial Statements along with all its subsidiaries, in the same form and manner, as that of the Company, which shall be laid before the ensuing 17th Annual General Meeting along with its Standalone Financial Statements. The Consolidated Financial Statements of the Company along with its subsidiaries, for the year ended March 31, 2023, forms part of the Annual Report.
As on March 31, 2023, the Company had 173 subsidiaries. Indiabulls Infraestate Limited, Lucina Land Development Limited, Athena Infrastructure Limited and Ceres Estate Limited were material subsidiaries of the Company during the financial year 2022-23.
For the names of companies which became or ceased to be subsidiaries or associate companies during the year ended March 31, 2023, for performance and financial position of each of the subsidiaries of the Company, along with other related information required pursuant to Rule 5 of the Companies (Accounts) Rules, 2014, the Members are requested to refer to the Consolidated and Standalone Financial Statements of the Company along with the statement pursuant to section 129(3) of the Companies Act, 2013, in the prescribed Form AOC - 1, forming part of the Annual Report.
Further, pursuant to the provisions of Section 136 of the Act, the financial statements of the Company, consolidated financial statements along with relevant documents and separate audited accounts in respect of subsidiaries, are also available on the website of the Company. Shareholders may write to the Company for the annual financial statements and detailed information on subsidiary companies. Further, the documents shall also be available for inspection by the shareholders at the registered office of the Company.
In compliance with the relevant provisions of applicable laws and statutes, the Company has the following Board constituted committees:
a) Audit Committee
b) Nomination and Remuneration Committee
c) Corporate Social Responsibility Committee
d) Stakeholders Relationship Committee
e) Risk Management Committee
The details with respect to composition, power, role, terms of reference etc. of each of these committees are given in the Corporate Governance Report forming part of this Annual Report.
In addition to the above, the Board has also constituted Compensation Committee for administration of stock options, Restructuring Committee for divestment of non-core and commercial assets, Operations Committee for dealing with various administrative and operational matters, Reorganisation Committee for review, monitoring and implementation of the Scheme of Amalgamation for proposed Amalgamation of Embassy group entities with the Company and Fund Raising Committee for raising of funds through issuance of securities by way of Qualified Institutions Placement.
The Board of Directors state that the Company has complied with the applicable Secretarial Standards (SS-1 and SS-2) respectively relating to Meetings of the Board, its Committees and the General Meetings as issued by the Institute of Company Secretaries of India.
NUMBER OF CASES FILED, IF ANY, AND THEIR DISPOSAL UNDER SECTION 22 OF THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013
The Company has zero tolerance towards sexual harassment at the workplace and has adopted a policy on prevention, prohibition and redressal of sexual harassment at workplace and has constituted an Internal Complaints Committee, in line with the provisions of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 and the Rules thereunder. During the financial year 2022-23, no cases of sexual harassment were reported.
The Company has complied with provisions relating to the constitution of Internal Complaints Committee (ICC) under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013. The Internal Complaints Committee (ICC) has been set up to redress complaints received, if any, regarding sexual harassment.
DETAILS OF PROCEEDINGS UNDER INSOLVENCY AND BANKRUPCY CODE, 2016
During the financial year 2022-23, no applications were made, or case was pending under the Insolvency and Bankruptcy Code, 2016.
DETAILS OF VALUATION DONE WITH RESPECT TO LOANS TAKEN FROM BANKS OR FINANCIAL INSTITUTION
During the financial year 2022-23, there was no one time settlement done in respect of loans taken from Banks or Financial Institutions.
The Company is committed to adhere to the highest standards of ethical, moral and legal conduct of its business operations. To maintain these standards, the Company has implemented the Whistle Blower Policy ("the Policy"), to provide an avenue for employees to report matters without the risk of subsequent victimization, discrimination or disadvantage. The Policy applies to all employees working for the Company and its subsidiaries. Pursuant to the Policy, the whistle blowers can raise concerns relating to matters such as breach of Company''s Code of Conduct, fraud, bribery, corruption, employee misconduct, illegality, misappropriation of Company''s funds/assets etc. A whistle-blowing or reporting mechanism, as set out in the Policy, invites all employees to act responsibly to uphold the reputation of the Company and its subsidiaries. The Policy aims to ensure that serious concerns are properly raised and addressed and are recognized as an enabling factor in administering good governance practices.
The details of the Whistle Blower Policy are available on the website of the Company (http://www.indiabullsrealestate.com).
Pursuant to the applicable provisions of the Companies Act and rules made thereunder and SEBI LODR and the MCA/ SEBI Circulars, the AGM of the Company is being held through Video Conferencing ("VC") / Other Audio Visual Means ("OAVM"), without the physical presence of the Members at a common venue. The proceedings of the AGM shall be deemed to be conducted at the Registered Office of the Company which shall be the deemed venue of the AGM. Electronic copies of the Annual Report for Financial year 2022-23 and Notice of the seventeenth AGM are sent to all the members whose email addresses are registered with the Company / Depository Participant(s). The Members who have not received the said Annual Report and Notice may download the same from the Company''s website at www.indiabullsrealestate.com and on the websites of the Stock Exchanges i.e. BSE Limited and National Stock Exchange of India Limited at www.bseindia.com and www.nseindia.com respectively.
The Company is providing e-voting facility to all members to enable them to cast their votes electronically on all resolutions set forth in the Notice of the 17th AGM. This is pursuant to section 108 of the Companies Act, 2013, read with applicable Rules and in accordance with the SEBI LODR Regulations. The instructions for e-voting are provided in the AGM Notice. Additionally, Insta-poll facility will also be provided to Members at AGM by KFin Technologies Limited, to enable casting of vote by such members who have not utilized e-voting mechanism.
Your Company has been able to operate efficiently because of the culture of professionalism, creativity, integrity and continuous improvement in all functional areas and the efficient utilization of all its resources for sustainable and profitable growth. Your directors wish to place on record their appreciation of the contributions made and committed services rendered by the employees of the Company at various levels. Your directors also wish to express their gratitude for the continuous assistance and support received from the investors, clients, bankers, regulatory and government authorities, during the year.
For and on behalf of the Board
Sd/- Sd/-
Sachin Shah Shyamm Mariwala
Place: Mumbai Whole-time Director Independent Director
Date: August 10, 2023 DIN: 00387166 DIN: 00350235
Mar 31, 2018
DIRECTORS'' REPORT
Dear Members,
The Directors have pleasure in presenting the Twelfth Annual Report together with the audited financial statements of accounts of the Company for the financial year ended March 31, 2018.
Financial Highlights
The highlights of the consolidated financial results of the Company for the financial year ended March 31, 2018, are as under:
Amount (Rs. in Lakhs)
Particulars |
Year ended March 31, 2018 |
Year ended March 31, 2017 |
Profit before Depreciation / Amortisation |
235,083.98 |
60,851.89 |
Less: Depreciation / Amortisation |
9,650.79 |
7,143.09 |
Profit before Tax |
225,433.18 |
53,708.80 |
Less: Provision for Tax |
26,929.19 |
18,261.51 |
Profit after Tax before share of Profit / (Loss) from associates and Non-controlling interest |
198,503.99 |
35,447.29 |
Share of Profit / (Loss) from associates |
(484.30) |
220.07 |
Non-controlling interest |
(3,495.60) |
(4,021.77) |
Net Profit for the year |
201,515.29 |
39,689.13 |
The highlights of the standalone financial results of the Company for the financial year ended March 31, 2018, are as under:
Amount (Rs. in Lakhs)
Particulars |
Year ended March 31, 2018 |
Year ended March 31, 2017 |
Profit before Depreciation / Amortisation |
(1518.65) |
1,825.40 |
Less: Depreciation / Amortisation |
97.56 |
134.45 |
Profit before Tax |
(1616.21) |
1,690.95 |
Less: Provision for Tax |
359.14 |
(44.12) |
Profit after Tax |
(1975.35) |
1,735.07 |
REVIEW OF OPERATIONS & BUSINESS UPDATE:
Key Financial Highlights (consolidated):
- Increase of around 165% in EBITDA -
Total EBITDA in FY ''18 increased to Rs 3,095.07 crores as against the EBITDA of Rs 1,169.3 crores in FY ''17.
- Increase of around 320% in PBT -
Total Profit Before Tax (PBT) in FY ''18 increased to Rs 2,254.3 crores as against the PBT of Rs 537.1 crores in FY ''17.
- Increase of around 408% in PAT after minority interest -
Total Profit After Tax and minority interest (PAT) in FY ''18 increased to Rs 2,015.15 crores as against the PAT of Rs 396.9 crores in FY ''17
- Increase of around 390% in EPS -
Earnings per share (EPS) in FY ''18 increased to Rs 42.46 as against the EPS of Rs 8.66 in FY ''17.
CREDIT RATING:
The Company has maintained its long term credit rating of ''AA-'', amongst the highest rated listed companies in the Indian real estate industry peer group. The Company has also retained ''A1 '' rating for its short-term debt, which is the highest rating that can be assigned for short-term debt. The ratings are the manifestation of the Company''s strong fundamentals, low gearing and execution track record and mirror its long term growth prospects.
BUSINESS OVERVIEW (Consolidated)
India bulls Real Estate is one of the largest real estate companies in India with a well-diversified presence in both commercial and residential real estate development and has projects across the price spectrum, from mid-income, premium to the super luxury space. Geographically, the Company''s strategic focus is in key markets of Mumbai Metropolitan Region (MMR) and National Capital Region (NCR). In addition, all our projects benefit from neighbouring infrastructure developments like the Mumbai Metros, Dwarka Expressway, Trans-harbour sea link, Navi Mumbai International Airport, etc.
Development Portfolio - Gross Development Value of Rs. 30,130 cr
- 14 on-going projects with total saleable area of 28.5 million sqft.
- Project execution to generate a Net Surplus of Rs. 17,191 cr
Project |
Location |
Net Surplus (Rs. in Cr) |
Blu Estate & Club, Worli |
Mumbai |
4,314 |
India bulls Greens, Panvel |
Mumbai |
1,798 |
India bulls Golf City, Savroli |
Mumbai |
1,966 |
Centrum Park, Gurgaon |
NCR |
285 |
Enigma, Gurgaon |
NCR |
237 |
One India bulls, Gurgaon |
NCR |
2,408 |
India bulls City, Sonepat |
NCR |
134 |
One India bulls, Vadodara |
Vadodara |
70 |
India bulls One 09 |
Gurgaon |
534 |
Mega Mall, Jodhpur |
Jodhpur |
234 |
India bulls Seirra, Vizag |
Vizag |
11 |
One India bulls Thane |
Mumbai |
1,093 |
Hanover Bond, Mayfair |
London |
3,806 |
Worli Commercial |
Mumbai |
301 |
Total |
17,191 |
Office Rental Portfolio
- Strong tenant relationships with 200 marquee tenants consisting of top-tier corporates from diverse sectors like financial services, consulting, legal, education, pharma, telecom, media, etc.
- 6 on-going development projects of 3.29 million sqft to substantially grow the Annuity Revenue.
Property |
Leasable Area (Mn. sqft) |
Annualised Annuity Revenue |
in FY 21-22 (Rs. in Cr)** |
||
Sector 18, Udyog Vihar, Gurgaon |
0.25 |
34 |
Phase IV, Udyog Vihar, Gurgaon |
0.25 |
34 |
Sector 18, Udyog Vihar, Gurgaon |
0.50 |
67 |
India bulls Mint, Gurgaon |
0.40 |
42 |
Sector 106, Gurgaon |
1.16 |
123 |
Commercial Development at Blu, Worli, Mumbai |
0.73 |
266 |
One India bulls Park, Chennai1 |
1.90 |
95 |
Total |
5.19 |
661 |
- The Company has divested the non-core asset on 6th July 2018.
** Annualized Annuity Revenue on the basis of 95% occupancy. Our completed properties have 95% occupancy as
on date.
JV Portfolio with Blackstone
- Your Company has entered into Joint Venture with Blackstone Group L.P., globally renowned real estate private equity investor, and divested 50% stake in two marquee commercial assets in Mumbai, namely India bulls Properties Private Limited (One India bulls Centre, ''Sky Forest'' and ''Sky'') and India bulls Real Estate Company Private Limited (India bulls Finance Centre) at an Enterprise Value of Rs 9,500 Cr ($ 1,466 million). The deal, achieved in a record time, was one of the largest Real Estate Private Equity Investments in India.
- One of the largest city-centre commercial portfolio in the financial capital of India aggregating to 4.1 million sqft.
Property |
Leasable Area (Mn. sqft) |
Annualised Annuity Revenue in FY 21-22 (Rs. in Cr)* |
One India bulls Centre, Mumbai |
1.66 |
367 |
India bulls Finance Centre, Mumbai |
1.66 |
351 |
India bulls Finance Centre, New Tower |
0.82 |
172 |
Grand Total |
4.14 |
890 |
Private Limited, at an Enterprise Value of Rs 9,500 Cr ($ 1,466 million). The deal, achieved in a record time, was one of the largest Real Estate Private Equity Investments in India. It also marks the beginning of a Rental platform of the Company with Investor for sale of owned & completed office properties to the Rental platform, and deploy funds to acquire assets at a discount to their replacement costs.
Sale of Commercial Assets in Non-core market
Pursuant to the authorization of the shareholders, the Company has entered into definitive agreement(s), with entities of Blackstone Group L.P., which is a globally renowned real estate private equity investor, for divestment of its 100% stake in the business of commercial assets at Ambattur, Chennai, being non-core real estate business operations for the Company. In terms of the definitive agreement(s), the Company has divested its partial stake and balance is to be divested by September 30, 2019, against which the Company will realise a gross value of approx. Rs 850 Cr, subject to adjustments, if any, basis certain assets and liabilities on closing.
Partnership with Mandarin Oriental Hotel Group (Hanover Bond, London)
The Company has partnered with Mandarin Oriental Hotel Group for integrated development of Hanover Bond, Located at Hanover Square. Hanover Bond will consist of 80 luxury Mandarin Oriental Residences for purchase as well as a fully integrated Mandarin Oriental hotel with 50 guest rooms and suites. This is not only the first Mandarin Oriental hotel and residences in Mayfair, but also the first truly integrated hotel and residences to be delivered in central London. Mandarin Oriental has guaranteed EBITDA, valuing hotel at £155mn @ 4% cap rate.
Acquisition of Commercial land/building at prime location in Gurugram
The Company through its wholly-owned subsidiary, Ashkit Properties Limited, acquired a prime commercial land admeasuring 13,519 sq. mtrs. on National Highway 8 (Plot No 20, situated in Sector 18, Urban Estate, Gurugram), which will be developed as a commercial complex with an expected leasable area of around 5 lacs sft.
Also, the Company, through its wholly-owned subsidiaries, Yashita Buildcon Limited and Manjola Infrastructure Limited, entered into binding and definitive agreements to acquire prime and newly constructed commercial buildings, having leasable area of approx 2.5 lac sqft each, in Gurugram.
Joint Development at Worli, Mumbai
The Company, through its wholly owned subsidiary India bulls Infraestate Ltd ("IIL"), has executed a Term Sheet with Oricon Enterprises Limited (OEL) for joint development of a commercial building on land parcel admeasuring approx. 3,512 sq. mtrs. situated at Dr. E. Moses Road, Worli, Mumbai - 400018, through which IIL will get an exclusive ownership rights of approx. 2.55 lac sq ft. leasable area.
Buy-back Offer of Equity shares of the Company
Pursuant to the authorization of its Board, the Company commenced the Buy-back of up to 2.6 Cr fully paid-up Equity shares of the Company, being approx. 5.45% of the then existing paid-up share capital of the Company, at prevailing market price on Stock Exchanges subject to a price not exceeding Rs. 240 per equity share, aggregating up to an amount not exceeding Rs. 624 Cr, being less than 10% of total paid-up share capital and free reserves of the Company (excluding all "Transaction Costs"), from the open market through the Stock Exchange mechanism, in accordance with SEBI (Buy Back of Securities) Regulations, 1998, as amended. The Company till August 14, 2018, bought back an aggregate 2,50,00,544 Equity shares, from the Exchanges, for an aggregate value of Rs.428.44 Cr (against the maximum buy-back size of Rs 624 Cr) at an average price of approx. Rs.171 per equity share (against the maximum buy-back price of Rs 240 per equity share).
Redemption of Notes by a wholly owned subsidiary of the Company
Century Limited, a wholly owned subsidiary of the Company, redeemed all of the outstanding US$175,000,000 10.25% Senior Notes due 2019, which were issued by Century under an indenture dated November 12, 2014 and guaranteed by the Company along with its certain subsidiaries. These notes upon redemption were cancelled and delisted from the SGX-ST.
DIVIDEND
In view of the business requirements of the Company, the Board of Directors of the Company has not recommended any dividend for financial year 2017-18.
In compliance with requirements stipulated vide SEBI notification no. SEBI/ LAD-NRO/GN/2016-17/008 dated July 8,
2016, the Dividend Distribution Policy of the Company is available on the website of the Company at web link https:// www.India bullsrealestate.com/policies/.
DIRECTORS AND KEY MANAGERIAL PERSONNEL
During the financial year 2017-18, Mr. Aishwarya Katoch (DIN: 00557488), an Independent Director, due to his personal commitments, resigned from the Directorship of the Company w.e.f. September 18, 2017. Also, Mr. Ashok Brijmohan Kacker (DIN: 01647408), a Non-executive Director, who, in view of his other pre-occupations, had opted not to propose his candidature for his re-appointment as Director of the Company at last Annual General Meeting, ceased to be Director of the Company w.e.f. September 29, 2017.
The present term of Justice Mrs. Gyan Sudha Misra (Retd. Justice Supreme Court of India) (DIN: 07577265), an Independent Director of the Company, shall come to an end on September 28, 2018. To ensure continuity of guidance from Justice Misra, the Board has recommended her re-appointment as an Independent Director of the Company for a term of 5 years from September 29, 2018 till September 28, 2023. Keeping in view, the vast experience and knowledge of Justice Misra, the Board is of the view that her appointment as an Independent Director, on the Board, will be in the interest of the Company. Upon getting approval of the shareholders for her appointment as an Independent Director her appointment shall be formalized by issuing a letter of appointment to her, which shall be open for inspection by the members at the Registered office of the Company, in terms of applicable provisions of the Companies Act.
In accordance with the provisions of the Companies Act, 2013, and in terms of the Articles of Association of the Company, Mr. Narendra Gehlaut (DIN: 01246303), an Executive Director designated as Vice Chairman, is liable to retire by rotation at the ensuing Annual General Meeting of the Company, and being eligible has offered himself for reappointment. The matter relating to his re-appointment has been included in the Notice of the 12th Annual General Meeting.
All the Independent Directors of the Company have given confirmation that they meet the criteria of independence laid down under Section 149(6) of the Companies Act, 2013.
Brief resume of the Directors proposed to be appointed/re-appointed, nature of their expertise in specific functional areas and names of companies in which they hold directorships and memberships/chairmanships of Board Committees, and other requisite information, are provided in the Notice convening the 12th Annual General Meeting of the Company.
SHARE CAPITAL / STOCK OPTIONS
The paid-up share capital of the Company as of March 31, 2018, was Rs. 94,93,48,278/- comprising of 47,46,74,139 equity shares of Rs. 2/- each.
During the current FY 2018-19 and till date (i) the Company had allotted an aggregate 20,06,150 Equity shares of face value Rs. 2/- each against exercise of equivalent number of stock options under various ESOP Schemes of the Company, as a result of which the paid up equity share capital of the Company increased to Rs. 95,33,60,578/- divided into 47,66,80,289 equity shares of Rs. 2/- each; (ii) the Company had extinguished its 25,000,544 equity shares bought back under its Buyback Offer, which commenced w.e.f. June 5, 2018, as a result of which the paid up equity share capital of the Company stands reduced to Rs. 90,33,59,490/- divided into 45,16,79,745 Equity Shares of face value Rs. 2/- each. The disclosures required to be made regarding Stock Options in compliance with the SEBI (Share Based Employee Benefits) Regulations, 2014, have been placed on the website of the Company https://www.India bullsrealestate.com/.
PUBLIC DEPOSITS
During the year under review, the Company has not accepted any deposits from the public, falling within the ambit of Chapter V of the Companies Act, 2013 and the Companies (Acceptance of Deposits) Rules, 2014, therefore the disclosures required in terms of Rule 8 of the Companies (Accounts) Rules, 2014, are not given.
LISTING WITH STOCK EXCHANGES
The Equity Shares (ISIN No.: INE 069 I01010) of the Company, continue to remain listed at BSE Limited and National Stock Exchange of India Limited. The listing fees payable to both the exchanges for the financial year 2018-19 have been paid. The GDRs issued by the Company continue to remain listed on Luxembourg Stock Exchange.
AUDITORS (a) Statutory Auditors
M/s Walker Chandiok & Co. LLP (Firm Regn. No. 001076N/N500013), the statutory auditors of the Company were appointed by the members at their Eighth Annual General Meeting, held on September 29, 2014, for a period of five years i.e. until the conclusion of the thirteenth Annual General Meeting of the Company. The Ministry of Corporate Affairs (MCA) vide its notification no. S.O. 1833(E) dated May 7, 2018, has done away with the requirement of getting the appointment of the Statutory Auditors ratified at every Annual General Meeting. Since the appointment of existing Statutory Auditors of the Company was initially approved by the shareholders for a period of five years, which will end at the conclusion of next Annual General Meeting, no resolution has been proposed for ratification of their appointment at the ensuing Annual General Meeting. The Company has received a certificate from the Auditors to the effect that their continuation as such from the conclusion of this Annual General Meeting until the conclusion of thirteenth annual general meeting, is in accordance with the provisions of Section 141(3)(g) of the Companies Act, 2013. M/s Walker Chandiok & Co LLP is a member firm of the global accounting firm Grant Thornton.
The Auditors'' Report is self - explanatory and therefore do not call for any further explanation. No fraud has been reported by the Auditors of the Company in terms of the provisions of Section 143(12) of the Companies Act, 2013, and Rules framed thereunder.
(b) Secretarial Auditors & Secretarial Audit Report
Pursuant to the provisions of Section 204 of the Companies Act, 2013 read with the rules made thereunder, the Company had appointed M/s S. Khandelwal & Co., a firm of Company Secretaries in practice as its Secretarial Auditors, to conduct the secretarial audit of the Company for the Financial Year 2017-18. The Company has provided all assistance, facilities, documents, records and clarifications etc. to the Secretarial Auditors for conducting their audit. The Report of Secretarial Auditors for the Financial Year 2017-18, is annexed as Annexure 1 and forms part of this Report.
The Report is self - explanatory and therefore do not call for any further explanation.
COST RECORDS
The requirement of maintenance of cost records, as specified by the Central Government under sub-section (1) of section 148 of the Companies Act, 2013, read with applicable Rules, is applicable on the Company, and accordingly, such accounts and records have been made and are maintained by the Company.
CORPORATE SOCIAL RESPONSIBILITY
As part of its initiatives under "Corporate Social Responsibility (CSR)", the Company has been undertaking projects in the areas specified under its CSR Policy (available on your Company''s website at web link https://www.India bullsrealestate. com/policies/) in accordance with Schedule VII of the Companies Act, 2013, read with the relevant Rules. In terms of the applicable provisions of the Companies Act 2013, read with relevant Rules, since the Company had average net losses during immediately preceding three financial years, the Company was not required to contribute any amount towards CSR activities during the FY 2017-18. An Annual Report on CSR, containing relevant details, is annexed as Annexure 2, forming part of this Report.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
Pursuant to Regulation 34 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements), Regulations, 2015, as amended ("SEBI LODR Regulations") with the Stock Exchanges, Management''s Discussion and Analysis Report, for the year under review, is presented in a separate section forming part of this Annual Report.
CORPORATE GOVERNANCE REPORT
Pursuant to Regulation 34 of the SEBI LODR Regulations with the Stock Exchanges, a separate section on Corporate Governance Practices followed by the Company, together with a certificate from a practicing Company Secretary confirming compliance, is presented in a separate section forming part of this Annual Report.
BUSINESS RESPONSIBILITY REPORT
Regulation 34 of the SEBI LODR Regulations mandates inclusion of the Business Responsibility Report (BRR) as part of the Annual Report for top 500 listed entities based on market capitalization. In compliance with the regulation, the BRR for the FY 2017-18 is presented in a separate section forming part of this Annual Report.
DIRECTORS'' RESPONSIBILITY STATEMENT
To the best of their knowledge and belief and according to the information and explanations obtained by them, your Directors, in terms of Section 134 of the Companies Act, 2013, hereby states:
a) that in the preparation of the annual financial statements for the year ended March 31, 2018, the applicable accounting standards had been followed along with proper explanation relating to material departures, if any;
b) that such accounting policies as mentioned in the Notes to the Financial Statements have been selected and applied consistently and judgments and estimates have been made that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company, as at March 31, 2018 and the profit and loss of the Company for the year ended on that date;
c) that proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013, for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities;
d) that the annual financial statements have been prepared on a going concern basis;
e) that proper internal financial controls are in place and that such financial controls are adequate and are operating effectively; and
f) that systems to ensure compliance with the provisions of all applicable laws are in place and are adequate and operating effectively.
EXTRACT OF ANNUAL RETURN
The details forming part of extract of Annual Return, as on the financial year ended March 31, 2018, in form MGT-9, are given in ''Annexure 3''. Pursuant to Sections 92(3) and 134(3) of the Companies Act, 2013, the Annual Return shall be placed on the website of the Company at web link https://www.India bullsrealestate.com/corporate-announcement/.
BOARD MEETINGS
During the FY 2017-18, 6 (Six) Board Meetings were convened and held. The details of such meetings are given in Corporate Governance Report forming part of this Annual Report. The intervening gap between these meetings was within the period prescribed under the Companies Act, 2013 and other applicable provisions. The notice and agenda including all material information and minimum information required to be made available to the Board under SEBI LODR Regulations, were circulated to all directors, well within the prescribed time, before the meeting or placed at the meeting with the permission of majority of Directors (including the Independent Directors). During the year, separate meeting of the Independent Directors was held on January 23, 2018, without the presence of Non-Independent Directors and the members of the Company Management.
PERFORMANCE EVALUATION OF THE BOARD, ITS COMMITTEE AND DIRECTORS
The Nomination & Remuneration Committee (NRC) of the Board reassessed the framework, methodology and criteria for evaluating the performance of the Board as a whole, including Board committee(s), as well as performance of each director(s) and confirms that the existing evaluation parameters are in compliance with the requirements as per SEBI guidance note dated January 5, 2017 on Board evaluation. The existing parameters includes effectiveness of the Board and its committees, decision making process, Directors/members participation, governance, independence, quality and content of agenda papers, team work, frequency of meetings, discussions at meetings, corporate culture, contribution and management of conflict of interest. Basis these parameters, the NRC had reviewed at length the performance of each director individually and expressed satisfaction on the process of evaluation and the performance of each Director. The performance evaluation of the Board as a whole and its committees, as well as the performance of each director individually was carried out by the entire Board of Directors. The performance evaluation of Non-independent
Directors and the Board as a whole was carried out by the Independent Directors at their meeting held on January 23, 2018. The Directors expressed their satisfaction with the evaluation process.
Also the Chairman of the Company, on a periodic basis, has had one-to-one discussion with the directors for their views on the functioning of the Board and the Company, including discussions on level of engagement and contribution, independence of judgment, safeguarding the interest of the Company and its minority shareholders and implementation of the suggestions offered by Directors either individually or collectively during different board/committee meetings.
REMUNERATION POLICY
The Board has framed a policy for selection and appointment of Directors, Senior Management and their remuneration. The Remuneration Policy is stated in the Corporate Governance Report forming part of this Annual Report.
LOANS, GUARANTEES OR INVESTMENTS
The Company''s investment/loans/guarantees, during FY 2017-18, were in compliance with the provisions of section 186 of the Companies Act, 2013, particulars of which are captured in financial statements of the Company, forming part of this Annual Report.
RELATED PARTY TRANSACTIONS
During the year, no materially significant related party transaction was entered by the Company with its Promoters, Key Managerial Personnel or other designated persons which may have potential conflict with the interest of the Company at large. Details of all related party transactions are disclosed in the financial statement of the Company forming part of this Annual Report. None of the transactions with related parties is material transaction and/or transaction which is not at Arm''s length, therefore, the information/disclosure required pursuant to Section 134(3)(h) of the Act read with Rule 8(2) of the Companies (Accounts) Rules, 2014 is not required to be given. The Policy on materiality of Related Party Transactions and also on dealing with such transactions is available on the website of the Company (https://www.India bullsrealestate.com/).
TRANSFER TO RESERVES
In compliance with regulations, as applicable to Buyback of Equity shares by the Company during FY 2017-18, the Company has transferred Rs. 115.92 Lakhs to Capital Redemption Reserve.
INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY
The Company has an elaborate system of internal controls commensurate with its size, scale and operations, which also covers financial controls, financial reporting, fraud control, compliance with applicable laws and regulations etc. Regular internal audits are conducted to check and to ensure that responsibilities are discharged effectively. The Internal Audit Department monitors and evaluates the efficacy and adequacy of internal control systems in the Company, its compliance with regulatory directives, efficacy of its operating systems, adherence to the accounting procedures and policies of the Company and its subsidiaries. Wherever required, the internal audit efforts are supplemented by audits conducted by specialized consultants/audit firms. All financial and audit control systems are also reviewed by the Audit Committee of the Board of Directors of the Company.
MATERIAL CHANGES AND COMMITMENTS
Other than those disclosed in this report, there are no material changes and commitments, affecting the financial position of the Company, which has occurred between the end of the Financial Year of the Company i.e. March 31, 2018 and the date of this Report.
Further, no significant and material orders were passed by the regulators or courts or tribunals, impacting the going concern status and Company''s operations in future.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO
The information on conservation of energy, technology absorption and foreign exchange earnings and outgo, is as under:
A. Conservation of Energy
The Company operations do not account for substantial energy consumption. However, the Company is taking all possible measures to conserve energy. As an on-going process, the following measures are undertaken:
a) Replacing all of its lighting system with LEDs, which is expected to slash related electricity consumption by over 50%.
b) Installation of five star energy conservation air conditioning systems.
c) Installation of automatic power controllers to save maximum demand charges and energy.
d) Installation of TFT monitors that saves power.
e) Periodic Training sessions for employees on ways to conserve energy in their individual roles.
B. Technology Absorption
The nature of business being carried out by the Company entails an extensive use of effective information technology so as to ensure that its services reach the end users i.e. its clients without any loss of time. The Company has implemented best of the class applications to manage and automate its business processes to achieve higher efficiency, data integrity and data security. It has helped it in implementing best business practices and shorter time to market new schemes, products and customer services.
The Company''s investment in technology has improved customer services, reduced operational costs and development of new business opportunities.
C. Foreign Exchange Earnings and Outgo
During the year under review, there were no foreign exchange earnings or expenditure.
BUSINESS RISK MANAGEMENT
Pursuant to the applicable provisions of the Companies Act, 2013, the Company has formulated robust Business Risk Management framework to identify and evaluate business risks and opportunities. This framework seeks to create transparency, minimize adverse impact on its business objectives and enhance its competitive advantage. It defines the risk management approach across the Company and its
subsidiaries at various levels including the documentation and reporting. At present, the Company has not identified any element of risk which may threaten its existence. The requirement of constituting Risk Management Committee in terms of SEBI LODR Regulations is not applicable to the Company.
PARTICULARS OF EMPLOYEES
Pursuant to the applicable provisions of the Companies Act, 2013 read with Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, disclosures on Managerial Remuneration are provided in "Annexure 4" forming part of this Report. In terms of the provisions of Section 136(1) of the Companies Act, 2013 read with the said Rules, the Directors'' Report is being sent to all the shareholders of the Company excluding the annexure on the names and other particulars of employees, required in accordance with Rule 5.2 of said rules, which is available for inspection by the members, subject to their specific written request, in advance, to the Company Secretary. The inspection is to be carried out at the Company''s Registered Office or at its Corporate Office, at Gurugram, during business hours on working days of the Company up to date of ensuing Annual General Meeting.
FAMILIARISATION PROGRAMME FOR NON-EXECUTIVE DIRECTORS
Non-Executive Directors are familiarised with their roles, rights and responsibilities in the Company as well as with the nature of industry and business model of the Company through presentations about the Company''s strategy, business model, product and service offerings, customers'' & shareholders'' profile, financial details, human resources, technology, facilities, internal controls and risk management, their roles, rights and responsibilities in the Company. The Board is also periodically briefed on the various changes, if any, in the regulations governing the conduct of non-executive directors including independent directors. The details of the familiarization programmes have been hosted on the website of the company and can be accessed on the link: https://www.India bullsrealestate.com/investor-relations/.
SUBSIDIARY COMPANIES
Pursuant to Section 129 of the Companies Act, 2013, the Company has prepared its Consolidated Financial Statements along with all its subsidiaries, in the same form and manner, as that of the Company, which shall be laid before its ensuing 12th Annual General Meeting along with its Standalone Financial Statements. The Consolidated Financial Statements of the Company along with its subsidiaries, for the year ended March 31, 2018, form part of the Annual Report.
For the performance and financial position of each of the subsidiaries of the Company, along with other related information required pursuant to Rule 8(5)(iv) of the Companies (Accounts) Rules, 2014, the Members are requested to refer to the Consolidated and Standalone Financial Statements of the Company along with the statement pursuant to section 129(3) of the Companies Act, 2013, forming part of the Annual Report.
Further pursuant to the provisions of Section 136 of the Act, the financial statements of the Company, consolidated financial statements along with relevant documents and separate audited accounts in respect of subsidiaries, are also available on the website of the Company. Shareholders may write to the Company for the annual financial statements and detailed information on subsidiary companies. Further, the documents shall also be available for inspection by the shareholders at the registered office of the Company.
COMMITTEES OF THE BOARD
In compliance with the relevant provisions of applicable laws and statutes, the Company has the following Board constituted committees:
a) Audit Committee
b) Nomination and Remuneration Committee
c) Stakeholders Relationship Committee
d) Corporate Social Responsibility Committee
The details with respect to composition, power, role, terms of reference, etc. of each of these committees are given in the Corporate Governance Report forming part of this Annual Report.
In addition, the Board has also constituted Compensation Committee for administration of stock options, Operations Committee and Management Committee, for dealing with various administrative and operational matters.
NUMBER OF CASES FILED, IF ANY, AND THEIR DISPOSAL UNDER SECTION 22 OF THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013
The Company has zero tolerance towards sexual harassment at the workplace and has adopted a policy on prevention, prohibition and redressal of sexual harassment at workplace and has constituted an Internal Complaints Committee, in line with the provisions of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 and the Rules thereunder.
During the financial year 2017-18, no cases of sexual harassment were reported.
VIGIL MECHANISM
The Company is committed to adhere to the highest standards of ethical, moral and legal conduct of its business operations. To maintain these standards, the Company has implemented the Whistle Blower Policy ("the Policy"), to provide an avenue for employees to report matters without the risk of subsequent victimization, discrimination or disadvantage. The Policy applies to all employees working for the Company and its subsidiaries. Pursuant to the Policy, the whistle blowers can raise concerns relating to matters such as breach of Company''s Code of Conduct, fraud, bribery, corruption, employee misconduct, illegality, misappropriation of Company''s funds / assets etc. A whistle-blowing or reporting mechanism, as set out in the Policy, invites all employees to act responsibly to uphold the reputation of the Company and its subsidiaries. The Policy aims to ensure that serious concerns are properly raised and addressed and are recognized as an enabling factor in administering good governance practices. The details of the Whistle Blower Policy are available on the website of the Company (https://www.India bullsrealestate.com).
GREEN INITIATIVES
Electronic copies of the Annual Report 2017-18 and Notice of the 12th AGM are being sent to all the members whose email addresses are registered with the Company / Depository Participant(s). For members who have not registered their email addresses or have submitted requests with the Company, physical copies of the Annual Report 2017-18 and Notice of the 12th AGM are being sent in the permitted mode.
The Company is providing e-voting facility to all members to enable them to cast their votes electronically on all resolutions set forth in the Notice of the 12th AGM. This is pursuant to section 108 of the Companies Act, 2013, read with applicable Rules and in accordance with the SEBI LODR Regulations. The instructions for e-voting are provided in the AGM Notice.
ACKNOWLEDGEMENT
Your Company has been able to operate efficiently because of the culture of professionalism, creativity, integrity and continuous improvement in all functional areas and the efficient utilization of all its resources for sustainable and profitable growth. Your Directors wish to place on record their appreciation of the contributions made and committed services rendered by the employees of the Company at various levels. Your Directors also wish to express their gratitude for the continuous assistance and support received from the investors, clients, bankers, regulatory and government authorities, during the year.
For and on behalf of the Board of Directors
Sd/- Sd/-
Gurbans Singh Vishal Gaurishankar Damani
Joint Managing Director Joint Managing Director
(DIN: 06667127) (DIN: 00358082)
Date: August 14, 2018
Place: Gurugram
Mar 31, 2017
Dear Shareholders,
The Directors have pleasure in presenting the Eleventh Annual Report together with the audited statement of accounts of the Company for the financial year ended March 31, 2017.
Financial Results
The highlights of the standalone financial results of the Company, for the financial year ended March 31, 2017, are as under:
Amount (Rs. in Lakhs)
Particulars |
Year ended March 31, 2017 |
Year ended March 31, 2016 |
Profit before Depreciation / Amortisation |
1,825.40 |
7,522.21 |
Less: Depreciation / Amortisation |
134.45 |
294.35 |
Profit before Tax |
1,690.95 |
7,227.86 |
Less: Provision for Tax |
(44.12) |
672.67 |
Profit after Tax |
1,735.07 |
6,555.19 |
The highlights of the consolidated financial results of the Company, for the financial year ended March 31, 2017, are as under:
Amount (Rs. in Lakhs)
Particulars |
Year ended March 31, 2017 |
Year ended March 31, 2016 |
Profit before Depreciation / Amortisation |
60,851.89 |
53,379.48 |
Less: Depreciation / Amortisation |
7,143.09 |
6.948.08 |
Profit before Tax |
53,708.80 |
46,431.40 |
Less: Provision for Tax |
18,261.51 |
14,184.07 |
Profit after Tax before share of Profit / (Loss) from associates and Non controlling interest |
35,447.29 |
32,247.33 |
Share of Profit / (Loss) from associates |
220.07 |
(114.09) |
Non controlling interest |
(4,021.77) |
2,526.85 |
Net Profit for the year |
39,689.13 |
29,606.39 |
REVIEW OF OPERATIONS & BUSINESS UPDATE:
Key Financial Highlights (consolidated):
- Increase of around 13.0% in EBITDA -
Total EBITDA in FY â17 increased to Rs.1,169.3 crores as against the EBITDA of Rs.1,034.9 crores in FY â16.
- Increase of around 15.7% in PBT -
Total Profit Before Tax (PBT) in FY â17 increased to Rs.537.1 crores as against the PBT of Rs.464.3 crores in FY â16.
- Increase of around 34.1% in PAT after minority interest -
Total Profit After Tax and minority interest (PAT) in FY â17 increased to Rs.396.9 crores as against the PAT of Rs.296.1 crores in FY â16
- Increase of around 19.3% in EPS -
Earnings per share (EPS) in FY â17 increased to Rs.8.66 as against the EPS of Rs.7.26 in FY â16.
CREDIT RATING:
The Company has maintained its long term credit rating of AA-, amongst the highest rated listed companies in the Indian real estate industry peer group. The Company has also retained A1 rating for its short-term debt, which is the highest rating that can be assigned for short-term debt. With this the Company enjoys ease and most favorable terms on the loans/facilities being availed from the Banks/Financial Institutions. The ratings are the manifestation of the Companyâs strong fundamentals, low gearing and execution track record and mirror its long term growth prospects.
BUSINESS OVERVIEW (consolidated)
Indiabulls Real Estate Limited is one of the largest real estate companies in India with Net worth of Rs.5,480 crores, with a well-diversified presence in both commercial and residential real estate development and has projects across the price spectrum, from mid-income, premium to the super luxury space. Geographically, the Companyâs strategic focus is in key markets of Mumbai Metropolitan Region (MMR), National Capital Region (NCR) in India. In addition, all our projects benefit from surrounding infrastructure developments like the Mumbai Metros, Dwarka Expressway, Trans-harbour sea link, Navi Mumbai International Airport, etc.
RENTAL PROPERTY PORTFOLIO HIGHLIGHTS
- One of the largest city-centre commercial portfolio in the financial capital of India aggregating to 4.89 million sq. ft.
- Unique tenant base with 200 marquee tenants generating Rs.692 Cr Annuity revenue.
- Substantial embedded growth through:
- Other 4 office developments currently under progress reaching to Rs.1,357 Cr Annuity revenue.
- Meaningful rent reversions given a sizeable area are currently under-rented.
- Standard contractual escalations.
Property |
Leasable Area (Mn. sq. ft.) |
Projected Annuity Revenue in FY 20-21 (Rs. cr) |
Completed Properties |
||
Indiabulls Finance Centre and One Indiabulls Centre, Mumbai |
3.3 |
690 |
One Indiabulls Park, Chennai |
1.9 |
91 |
Total |
5.2 |
781 |
Properties under construction & in Planning/Approval Process |
||
Indiabulls commercial development at Indiabulls Finance Centre site at Mumbai |
0.79 |
159 |
Indiabulls commercial development at Blu site at Mumbai |
0.80 |
258 |
Indiabulls Mint, Sector 104, Gurugram |
0.40 |
41 |
Indiabulls commercial development at Sector 106, Gurugram |
1.16 |
118 |
Total |
3.15 |
576 |
Grand Total |
8.35 |
1,357 |
Residential Property Portfolio Highlights
- 15 ongoing projects with total Saleable area of 33.91 million sq. ft. with Gross Development Value Rs.32,189 Cr.
- 53.7% of the Inventory aggregating to Rs.15,479 Cr sold.
- Handover started for 4 projects, and additional 5 projects to start within the next 4 to 5 quarters.
Project |
Location |
Area (Mn. sq. ft.) |
Gross Development Value (Rs. Cr) |
Blu Estate & Club, Worli |
Mumbai |
1.37 |
5,866 |
Indiabulls Greens, Panvel |
Mumbai |
8.73 |
4,423 |
Indiabulls Golf City, Savroli |
Mumbai |
5.39 |
3,229 |
Centrum Park, Gurugram |
NCR |
2.16 |
909 |
Enigma, Gurugram |
NCR |
1.76 |
1,116 |
Indiabulls Greens, Chennai |
Chennai |
2.07 |
819 |
Indiabulls City, Sonepat |
NCR |
1.76 |
252 |
One Indiabulls, Gurugram |
NCR |
4.68 |
3,744 |
One Indiabulls, Vadodara |
Vadodara |
0.23 |
83 |
Indiabulls One 09 |
Gurugram |
1.10 |
872 |
Mega Mall, Jodhpur |
Jodhpur |
0.65 |
363 |
Indiabulls Seirra, Vizag |
Vizag |
0.84 |
265 |
One Indiabulls Thane |
Mumbai |
1.40 |
1,616 |
Sky Forest |
Mumbai |
1.63 |
3,827 |
Hanover Bond, Mayfair |
London |
0.14 |
4,805 |
Total |
33.91 |
32,189 |
Impetus to Gurugram Projects - NHAI has recently granted a National Highway Status to the Northern Peripheral Road (Dwarka Expressway). It is a major growth impetus for projects along the arterial road. It will serve as a major alternate route between Delhi and Gurugram.
For almost entire portfolio of under construction projects, key approvals (including municipal and land development) are already in place and all residential projects are RERA registered and compliant.
Land Bank - key to future profitability
The company has fully paid land bank of 1,046 acres in key cities across India, of which more than 95% of the Land Bank is in high value super-metro cities - Mumbai (MMR), National Capital Region (NCR) and Chennai, and which is sufficient for proposed development over the next 5-7 years. In addition to the said land bank of 1,046 acres, the Company also possesses 2,588 acres of SEZ land in Nashik, Maharashtra.
SIGNIFICANT EVENTS DURING FINANCIAL YEAR 2016-17
Acquisition of units of Indiabulls Properties Investment Trust, a SGX-ST listed business trust (âIPITâ)
Companyâs holding (through its subsidiaries) in IPIT has increased from 47.51% to 54.95% pursuant to acquisition of additional units by Grapene Limited, an indirect wholly-owned subsidiary of the Company.
Joint Development Agreement
The Company, through one of its subsidiary, had entered into a Joint Development Agreement with âOricon Properties Pvt. Ltdâ, a subsidiary of Oricon Enterprises Limited, for development of 7,810 sq. mtrs. plot situated at Dr. E. Moses Road, Worli, Mumbai - 400018, adjoining to its marque project âBLUâ.
Buy-back of equity shares of the Company
During the period from December 14, 2016 to April 10, 2017, the Company, pursuant to it Board authorization and applicable SEBI Regulations, had bought back an aggregate 3,40,46,000 equity shares, from the Exchanges, for an aggregate value of Rs.272.05 Cr (against the maximum buy-back size of Rs.540 Cr) at an average price of Rs.79.91 per equity share (against the maximum buy-back price of Rs.90 per equity share).
Receipt of refund from DDA and acquisition of entire stake of JV partner in Indiabulls Infrastructure Limited (IIL)
The Company acquired FIMâs entire stake of approx. 74% in IIL, for Rs.382 crores, making IIL a wholly owned subsidiary of the Company. Kenneth Builders & Developers Pvt Ltd, a wholly owned subsidiary of IIL,was refunded Rs.701 crores, net of TDS, (being the auction price, along with interest, of the land situated at Village Tehkhand, New Delhi, earlier allotted by DDA for development of residential project).
Acquisition of India Land and Properties Limited
Indiabulls Infrastructure Limited, a wholly owned subsidiary of the Company, acquired the entire stake in India Land and Properties Limited (âILPLâ), for an aggregate consideration of Rs.685 crores, making ILPL a wholly owned subsidiary of the Company.
ILPL owns a commercial complex of 3 towers with a total constructed area of 2.67 million Sq. ft. and leasable area of 1.94 million Sq. ft., spread over a total land area of over 8.84 acres situated at No. 14, 3rd Main Road, Ambattur Industrial Estate, Ambattur, Chennai. Some of the lessees of these towers are Royal Bank of Scotland, Yes Bank, Kone, Ajuba, Covenant, MSC service centre, HGS, Access Healthcare and others. The said complex has been designed in compliance to the National Building Codes by the internationally acclaimed Ms. ZAHA HADID, UK, âLaureate Pritzkerâ Prize Winner (2004) and its a GOLD rated GREEN Building.
MATERIAL EVENTS AND CHANGES, SUBSEQUENT TO FINANCIAL YEAR 2016-17
Acquisition of minority stake in Indiabulls Infraestate Limited
The Company acquired the entire minority stake of 10.08% in Indiabulls Infraestate Limited (IIL), a majority owned material subsidiary of the Company, from ILFS Fund entities, namely IIRF India Realty XXI Limited, Little Fairy Limited and Vistra ITCL (India) Limited, its minority investors, at an aggregate cash consideration of Rs.358.44 Cr, including interest of Rs.94.85 Cr., thereby making IIL a wholly owned subsidiary of the Company. IIL is developing a premium integrated marque residential project named âIndiabulls Bluâ in Worli, Mumbai, comprising of 4 residential towers and additionally 2 office towers in the non-residential area.
Sale of treasury shares by IBREL IBL Scheme Trust
The Company had realized Rs.662.83 Cr through sale of its 3.3 Cr equity shares, held by IBREL IBL Scheme Trust, of which the Company is the sole beneficiary. The proceeds are to be utilized for meeting Companyâs funding requirements for its ongoing businesses and general corporate purposes.
DIVIDEND
In view of the requirements of funds for ongoing projects and other corporate business requirements of the Company, the Board of Directors of the Company has not recommended any dividend for financial year 2016-17.
In compliance with requirements stipulated vide SEBI notification no. SEBI/ LAD-NRO/GN/2016-17/008 dated July 8, 2016, the Dividend Distribution Policy of the Company is available on the website of the Company i.e. www.indiabullsrealestate.com.
DIRECTORS AND KEY MANAGERIAL PERSONNEL
In accordance with the provisions of the Companies Act, 2013, and in terms of the Memorandum and Articles of Association of the Company, Mr. Gurbans Singh (DIN: 06667127) and Mr. Vishal Gaurishankar Damani (DIN: 00358082), director(s) designated as Joint Managing Director(s), retire by rotation at the ensuing Annual General Meeting of the Company, and being eligible offer themselves for reappointment. Mr. Ashok Brijmohan Kacker (DIN:01647408), nonexecutive director of the Company, has, in view of his other pre-occupations, opted not to propose his candidature for re-appointment as director on the Board, at ensuing Annual General Meeting of the Company.
During the financial year 2016-17, the two year term of Justice (Retd.) Surinder Singh Nijjar and Mrs. Rama Das, as Independent Directors of the Company, came to an end on September 28, 2016. The Board places on record its appreciation for the contributions made by Justice Nijjar and Mrs. Das, during their tenure as Independent Directors of the Company.
Members of the Company at their 10th Annual General Meeting appointed Justice Mrs. Gyan Sudha Misra (Retd. Justice Supreme Court of India) (DIN: 07577265) as an Independent Director of the Company, for a period of 2 (two) years w.e.f. September 29, 2016.
All the Independent Directors of the Company have given confirmation that they meet the criteria of independence laid down under Section 149(6) of the Companies Act, 2013.
The present composition of the Board, along with the brief resume of the Directors retiring by rotation, nature of their expertise in specific functional areas and names of companies in which they hold directorships and memberships/ chairmanships of Board Committees, are provided in the Report on Corporate Governance forming part of this Annual Report.
SHARE CAPITAL / STOCK OPTIONS
The paid-up share capital of the Company as of March 31, 2017, was Rs.95,68,28,678/- comprising of 47,84,14,339 equity shares of Rs.2/- each.
During the current year, consequent to the extinguishment of 57,96,000 equity shares on 14th April 2017, bought back by the Company under its Buy-back offer, the paid-up equity share capital of the Company, reduced to Rs.94,52,36,678/- divided into 47,26,18,339 equity shares of face value Rs.2/- each.
Subsequently, consequent to the allotment of an aggregate 20,55,800 equity shares of face value Rs.2/- each on May 8, 2017, against exercise of stock options under various ESOP Schemes of the Company, the paid up equity share capital of the Company stands increased to Rs.94,93,48,278/- divided into 47,46,74,139 equity shares of Rs.2/- each. The disclosures required to be made in compliance with the applicable regulations are set out in the Annexure-B to this Report and have been placed on the website of the Company http://www.indiabullsrealestate.com/.
PUBLIC DEPOSITS
During the year under review, the Company has not accepted any deposits from the public, falling within the ambit of Chapter V of the Companies Act, 2013 and the Companies (Acceptance of Deposits) Rules, 2014.
LISTING WITH STOCK EXCHANGES
The Equity Shares (ISIN No.: INE 069 I01010) of the Company, continue to remain listed at BSE Limited and National Stock Exchange of India Limited. The listing fees payable to both the exchanges for the financial year 2017-18 have been paid. The GDRs issued by the Company continue to remain listed on Luxembourg Stock Exchange.
AUDITORS
(a) Statutory Auditors
M/s Walker Chandiok & Co. LLP (Firm Regn. No. 001076N/N500013), a member of Grant Thornton International, the statutory auditors of the Company were appointed by the members in their Eighth Annual General Meeting, held on 29th September 2014, for a period of five years i.e. until the conclusion of the thirteenth Annual General Meeting of the Company. The Company has received a certificate from the Auditors to the effect, that their continuation as such from the conclusion of this Annual General Meeting until the conclusion of twelfth annual general meeting, is in accordance with the provisions of Section 141(3)(g) of the Companies Act, 2013. The Board recommends the ratification of the appointment of M/s Walker Chandiok & Co. LLP, as statutory auditors of the Company till the conclusion of twelfth annual general meeting of the Company.
The Auditorsâ Report is self - explanatory and therefore do not call for any further explanation.
(b) Secretarial Auditors & Secretarial Audit Report
Pursuant to the provisions of Section 204 of the Companies Act, 2013 read with the rules made thereunder, the Company had appointed M/s S. Khandelwal & Co., a firm of Company Secretaries in practice as its Secretarial Auditors, to conduct the secretarial audit of the Company, for the Financial Year 2016-17. The Company has provided all assistance, facilities, documents, records and clarifications etc. to the Secretarial Auditors for conducting their audit. The Report of Secretarial Auditors for the Financial Year 2016-17, is annexed as Annexure 1 and forms part of this Report.
The Report is self - explanatory and therefore do not call for any further explanation.
CORPORATE SOCIAL RESPONSIBILITY
As part of its initiatives under âCorporate Social Responsibility (CSR)â, the Company has undertaken projects in the areas of Sanitation, as per its CSR Policy (available on your Companyâs website http://www.indiabullsrealestate.com) and the details are contained in the Annual Report on CSR Activities given in Annexure 2, forming part of this Report. These projects are in accordance with Schedule VII of the Companies Act, 2013, read with the relevant Rules.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
Pursuant to Regulation 34 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended (âSEBI LODR Regulationsâ) with the Stock Exchanges, Managementâs Discussion and Analysis Report, for the year under review, is presented in a separate section forming part of this Annual Report.
CORPORATE GOVERNANCE REPORT
Pursuant to Regulation 24 of the SEBI LODR Regulations with the Stock Exchanges, a separate section on Corporate Governance Practices followed by the Company, together with a certificate from a practicing Company Secretary confirming compliance, is presented in a separate section forming part of this Annual Report.
BUSINESS RESPONSIBILITY REPORT
Pursuant to Regulation 34 of the SEBI LODR Regulations mandates inclusion of the Business Responsibility Report (BRR) as part of the Annual Report for top 500 listed entities based on market capitalization. In compliance with the regulation, we have provided the BRR as part of this Annual Report.
DIRECTORSâ RESPONSIBILITY STATEMENT
To the best of their knowledge and belief and according to the information and explanations obtained by them, your Directors make the following statement in terms of Section 134 of the Companies Act, 2013:
a) that in the preparation of the annual financial statements for the year ended March 31, 2017, the applicable accounting standards had been followed along with proper explanation relating to material departures, if any;
b) that such accounting policies as mentioned in the Notes to the Financial Statements have been selected and applied consistently and judgments and estimates have been made that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company, as at March 31, 2017 and the profit and loss of the company for the year ended on that date;
c) that proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013, for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities;
d) that the annual financial statements have been prepared on a going concern basis;
e) that proper internal financial controls were in place and that such financial controls were adequate and were operating effectively; and
f) that systems to ensure compliance with the provisions of all applicable laws were in place and were adequate and operating effectively.
INFORMATION PURSUANT TO SECTION 134 AND SECTION 197 OF THE COMPANIES ACT, 2013 READ WITH THE RELEVANT RULES AND SEBI LODR REGULATIONS
The information required to be disclosed pursuant to Section 134 and Section 197 of the Companies Act, 2013, read with the relevant Rules (to the extent applicable) and SEBI LODR Regulations, not elsewhere mentioned in this Report, are given in âAnnexure -Aâ forming part of this Report.
GREEN INITIATIVES
Electronic copies of the Annual Report 2017 and Notice of the 11th AGM are being sent to all the members whose email addresses are registered with the Company / Depository Participant(s). For members who have not registered their email addresses or have submitted requests with the Company, physical copies of the Annual Report 2017 and Notice of the 11th AGM are being sent in the permitted mode.
The Company is providing e-voting facility to all members to enable them to cast their votes electronically on all resolutions set forth in the Notice of the 11th AGM. This is pursuant to section 108 of the Companies Act, 2013,read with applicable Rules and in accordance with the SEBI LODR Regulations. The instructions for e-voting are provided in the AGM Notice.
ACKNOWLEDGEMENT
Your Company has been able to operate efficiently because of the culture of professionalism, creativity, integrity and continuous improvement in all functional areas and the efficient utilization of all its resources for sustainable and profitable growth. Your Directors wish to place on record their appreciation of the contributions made and committed services rendered by the employees of the Company at various levels. Your Directors also wish to express their gratitude for the continuous assistance and support received from the investors, clients, bankers, regulatory and government authorities, during the year.
For and on behalf of the Board of Directors
Gurbans Singh Vishal Gaurishankar Damani
Joint Managing Director Joint Managing Director
(DIN: 06667127) (DIN: 00358082)
Place: Mumbai
Date: July 24, 2017
Mar 31, 2014
Dear Shareholders,
The Directors have pleasure in presenting the Eighth Annual Report
together with the audited accounts of the Company for the financial
year ended March 31, 2014.
FINANCIAL HIGHLIGHTS
The highlights of the financial results of the Company for the
financial year ended March 31, 2014 are as under:
Amount (in Rupees)
Particulars Year ended Year ended
March 31, 2014 March 31, 2013
Profit before Depreciation/Amortisation 1,604,641,783 3,446,559,581
Less: Depreciation/Amortisation 32,135,061 33,330,752
Profit before Tax 1,572,506,722 3,413,228,829
Less: Provision for Tax 126,974,621 727,618,602
Profit after Tax 1,445,532,101 2,685,610,227
Balance of Profit Brought Forward 205,283,979 87,475,910
Profit Available for Appropriation 1,650,816,080 2,773,086,137
Appropriations:
Interim Dividend on Equity shares 1,059,532,217 848,021,478
Corporate Dividend Tax on Interim
Dividend on Equity shares (9,090,500) 16,658,750
Transfer to General Reserves 153,300,802 268,561,022
Transfer to Capital Redemption Reserves - 100,000,000
Transferred to Debenture Redemption Reserve 333,333,334 1,334,560,908
Balance of Profit Carried Forward 113,740,227 205,283,979
REVIEW OF OPERATIONS & BUSINESS UPDATE:
Key Financial Highlights:
* Total Sales in FY ''14 increased to Rs. 3,076 Crores for an area of
3.40 msft as against the sales of Rs. 3,002 Crores for an area of 2.82
msft in FY ''13.
* Total Revenues in FY ''14 increased to Rs. 1800 Crores as against the
revenues of Rs. 1,346 Crores in FY ''13.
* Total Profit after Tax (PAT) in FY ''14 increased to Rs. 230 Crores as
against the PAT of Rs. 175 Crores in FY ''13.
* Earnings per share (EPS) in FY ''14 increased to Rs. 5.28 as against
the EPS of Rs. 3.74 in FY ''13.
Credit Rating:
The Company has retained its A (A Plus) rating for its long term debt
(Term Loans and NCDs) and A1 (A One Plus) rating for its short-term
debt, which is the highest rating that can be assigned for short-term
debt. With this the Company enjoys ease and most favorable terms on the
loans/facilities being availed from the Banks/Financial Institutions.
The ratings are the manifestation of the Company''s strong fundamentals,
low gearing and execution track record and mirror its long term growth
prospects.
Land Bank:
* As on 31st March 2014, total Land Bank is 1,009.74 acres, of which
966.56 acres is for residential development and balance 43.18 acres is
for commercial development.
* More than 95% of the Land Bank is high value super-metro cities -
Mumbai Metro Region, National Capital Region (Delhi) and Chennai
Project development:
In addition to the land bank of 1,009.74 acres and 2,588 acres of SEZ
land in Nashik, the Company''s ongoing projects have 72.86 million
square feet area of development. Each project bears a stamp of
thoughtful solutions and highest quality and an optimum mix of
different categories and therefore the Company has diversified
portfolio of super premium category, premium category & mid income
category.
Ongoing major projects are:
* BLU, Worli, Mumbai
* Sky, Lower Parel, Mumbai
* Sky Forest, Lower Parel, Mumbai
* Sky Suites, Lower Parel, Mumbai
* Indiabulls Golf City, Savroli, MMR
* Indiabulls Greens, Panvel, MMR
* Vatika, Ahmedabad
* Indiabulls Mega Mall, Vadodara
* Indiabulls Greens, Chennai
* Indiabulls Centrum, Madurai
* Centrum Park, Gurgaon
* Enigma, Gurgaon
* Indiabulls City, Sonepat, Haryana
New Launch of projects for FY15
* One Indiabulls - Sec 104, Gurgaon (recently launched): Super premium
residential complex consisting of town houses, low rise apartments and
high rise towers spread over 34 acres
* Indiabulls Mint- Sec 104, Gurgaon: Iconic commercial tower of 2.11
lac sqft
* Indiabulls Imperial - Sec 106, Gurgaon: Integrated township with
high-end residential apartments, villas, luxury retail and commercial
spread over 35.23 acres
* Indiabulls Sierra, Vizag (recently launched): 7.86 lac sqft of
residential development, consisting of 13 residential towers spread
over 4.8 acres
* Indiabulls Kalina, Mumbai: One of the most eagerly awaited projects
in the city, It''s a boutique high end project,
2.12 lac sqft of ultra-premium residential development
* Indiabulls Commercial Centre-Sec 109, Gurgaon: 5.84 lac sqft of
commercial development
SIGNIFICANT DEVELOPMENT DURING THE YEAR
During the year 2013-14, the Company has purchased the entire stake of
FIM Ltd. and its affiliates (managed by Farallon Capital Management LLC
and its affiliates, a leading U.S. private equity fund), in its 7
project subsidiaries. With the purchase of FIM''s entire stake, these
project subsidiaries have become 100% owned by the Company. The details
of these 7 project subsidiaries are as under:
Project Subsidiary Project Area (Acres)
Selene Estate Ltd. Greens, OMR- Chennai 15.90
Indiabulls Estate Ltd. Indiabulls City, Sonera 160.81
Citra Properties Ltd. Sector - 109, Gurgaon 6.19
Airmid Developers Ltd. Sector - 106, Gurgaon 39.06
Selene Constructions Ltd. Centrum Park, Gurgaon 28.03
Juventus Estate Ltd. Sector - 104, Gurgaon 31.17
Athena Infrastructure Ltd. Enigma, Gurgaon 16.60
INTERNATIONAL FORAY
The Company has recently made its first international foray, with the
acquisition of 22 Hanover Square, an iconic landmark in Mayfair, the
heart of central London, which is currently a commercial office
building spread over 87,444 sqft of area. The project envisages
redeveloping it into a luxury residential building. Further, the
Company already has its marketing cum sales offices in London and
Dubai.
PROMOTERS DE-CLASSIFICATION
To impart greater focus and undivided accountability at the leadership
level and to rationalize operations of the diverse businesses of the
Indiabulls group, so as to put the Company firmly on the growth path,
the promoters have mutually decided to reorganize the management
control of different group companies amongst themselves. As part of the
restructuring, Mr Sameer Gehlaut, Chairman of the Company and the
entities promoted by him namely Jyestha Infrastructure Private Limited,
Kritikka Infrastructure Private Limited, Powerscreen Media Private
Limited, Karanbhumi Estates Private Limited, Meru Minerals Private
Limited, Dahlia Infrastructure Private Limited, Galax Minerals Private
Limited alongwith IBREL-IBL Scheme Trust shall continue as Promoters /
Promoter Group / PACs with the promoters of the Company.
Further, with effect from July 18, 2014, Mr. Rajiv Rattan, Yantra
Energetics Private Limited, Spire Constructions Private Limited, Laurel
Energetics Private Limited, Nettle Constructions Private Limited, Mr.
Saurabh Kumar Mittal, Gragerious Projects Private Limited, Punarvasu
Builders and Developers Private Limited, Ceres Trading Services Private
Limited, Daisy Projects Private Limited and Lucerne Trading Services
Private Limited have ceased to be the Promoters / Promoter Group / PACs
with the promoters of the Company.
DIVIDEND
For the financial year 2013-14, the Board of Directors of the Company
had declared three interim dividends aggregating to Rs. 3/- per share
on shares of face value Rs. 2/- each (i.e. Re. 1/- per equity share on
July 24, 2013, Re. 1/- per share on October 22, 2013 and Re. 1/- per
equity share on April 23, 2014). Your Directors recommend that the
payment of the aforesaid interim dividends aggregating to Rs. 3/- per
equity share on shares of face value Rs. 2/- each for the year ended on
March 31, 2014 be confirmed.
DIRECTORS
The Board in recognition of the contributions of Mr. Narendra Gehlaut,
MD of the Company, in taking the Company to remarkable growth and
progress, elevated him to the position of Vice Chairman of the Company.
To achieve the highest standards of Corporate Governance in its
management and to introduce a true sense of professionalism in the
Board of the Company, the Board has proposed the appointments of
Justice Surinder Singh Nijjar (Retd. Justice - Supreme Court of India)
(DIN: 06964806), Justice Bisheshwar Prasad Singh (Retd. Justice Supreme
Court of India) (DIN: 06949954) and Mrs. Rama Das (Ex-Member, CAT)
(DIN: 06954941) as Independent Directors of the Company and the
appointments of Mr. Vinesh Kumar Jairath (Ex-IAS Officer) (DIN:
00391684) and Mr. Gurbans Singh (Ex-IRS Officer) (DIN: 06667127), as
Joint Managing Directors of the Company along with the appointment of
Mr. Ashok Brijmohan Kacker (Ex-IRS Officer) (DIN: 01647408), as a
Non-executive Director of the Company.
Further to ensure continuity of guidance from Brig. Labh Singh Sitara
(Ex-army official and Dhyanchand award winner sportsman) (DIN:
01724648), Mr. Shamsher Singh Ahlawat (DIN: 00017480) and Mr. Aishwarya
Katoch (DIN: 00557488), the existing Independent Directors of the
Company, the Board has recommended their re-appointments as Independent
Directors of the Company.
In accordance with the provisions of Section 152 of the Companies Act,
2013, Mr. Narendra Gehlaut (DIN: 01246303), retire by rotation at the
ensuing Annual General Meeting of the Company and being eligible offer
himself for reappointment. The Board recommends his re-appointment.
Brief resume of the Directors proposed to be appointed/re-appointed,
nature of their expertise and names of companies in which they hold
directorships and memberships/chairmanships of Board Committees, as
stipulated under Clause 49 of Listing Agreement with the Stock
Exchanges in India, are provided in the Report on Corporate Governance
forming part of the Annual Report.
In consonance with the management re-organization, within Indiabulls
group companies, as mutually decided among its promoters, Mr. Rajiv
Rattan (DIN: 00010849) & Mr. Saurabh Kumar Mittal (DIN: 01175382) have
resigned from the Board of Directors of the Company on 9th July 2014.
The Board appreciated the efforts put in by Mr. Rattan & Mr. Mittal
during their association with the Company.
EMPLOYEES STOCK OPTIONS
The disclosures required to be made in the Directors'' Report in respect
of the stock options granted under various employee stock option
schemes in force in the Company, in terms of the format prescribed
under SEBI (Employee Stock Option Scheme and Stock Purchase Scheme)
Guidelines 1999, are set out in the annexures forming a part of this
Report.
CHANGE IN THE CAPITAL OF THE COMPANY
Subsequent to the financial year ended March 31, 2014, the Company had
allotted 8,62,000 equity shares of face value Rs. 2/- each, against
exercise of stock options under Indiabulls Real Estate Limited
Employees Stock Option Scheme 2006, consequent to which, the paid up
equity share capital of the Company increased from Rs. 84,80,21,478/-
comprising of 42,40,10,739 equity shares of Rs. 2/- each, to Mrs.
84,97,45,478/- comprising of 42,48,72,739 equity shares of Rs. 2/-
each.
PUBLIC DEPOSITS
The Company has not accepted any deposits from the public during the
year under review.
SUBSIDIARIES
The statement pursuant to Section 212(1) (e) of the Companies Act, 1956
relating to subsidiary companies forms a part of the financial
statements.
In accordance with the general circular issued by the Ministry of
Corporate Affairs, Government of India, the Balance Sheet, Statement of
Profit and Loss and other documents of subsidiary companies are not
being attached with the Balance Sheet of the Company. However the
financial information of the subsidiary companies is disclosed in the
Annual Report in compliance with the said circular. The Company will
make available the Annual Accounts of the subsidiary companies and the
related detailed information to any member of the Company who may be
interested in obtaining the same. The annual accounts of the subsidiary
companies will also be kept open for inspection at the Registered
Office of the Company and that of the respective subsidiary companies.
The Consolidated Financial Statements presented by the Company include
the financial results of its subsidiary companies.
CORPORATE SOCIAL RESPONSIBILITY
During the year, your directors have constituted the Corporate Social
Responsibility Committee comprising Mr. Karan Singh Khera as the
Chairman and Mr. Narendra Gehlaut and Mr. Saurabh Kumar Mittal as other
members. However, due to resignation of Mr. Saurabh Kumar Mittal from
the Board on July 9, 2014, the Committee was reconstituted, with Mr.
Shamsher Singh Ahlawat replacing Mr. Saurabh Kumar Mittal as a member
of the Committee.
The said Committee has been entrusted with the responsibility of
formulating and recommending to the Board, a Corporate Social
Responsibility Policy (CSR Policy) indicating the activities to be
undertaken by the Company, monitoring the implementation of the
framework of the CSR Policy and recommending the amount to be spent on
CSR activities.
INDIABULLS FOUNDATION
The objective of Indiabulls Foundation is to do meaningful work with
measureable output and maximum impact on the society. One of the first
initiatives of Indiabulls Foundation is to support the development of
rural districts. The Foundation has initiated pilot projects such as
Aatm Shakti and Anganwadi in Rajasthan and Maharashtra with an open and
a collaborative approach, which leverages the efforts of local
stakeholders for a robust and scalable structure.
Other projects initiated by the Foundation are granting of mobile
medical vans, rainwater harvesting, groundwater management, tree
plantation, IT projects for rural development, income generation
support for rural women, skills training for rural youth, conducting
eye camps for rural school children and in trying to be of support to
traditional artisans.
CONSOLIDATED FINANCIAL STATEMENT
In accordance with Accounting Standard (AS) - 21 on consolidated
financial statements read with other related AS, the audited
consolidated financial statement is provided in the Annual Report.
GREEN INITIATIVE
Electronic copies of the annual report 2014 and notice of the 8th AGM
are being sent to all members whose email addresses are registered with
the Company/Depository Participant(s). For members who have not
registered their email addresses, physical copies of Annual Report 2014
and the Notice of the AGM are being sent in the permitted mode. Members
requiring physical copies can send a request to the Company Secretary.
The Company is providing e-voting facility to all members to enable
them to cast their votes electronically on all the resolutions set
forth in the Notice of the AGM. This is pursuant to section 108 of the
Companies Act, 2013 and Rule 20 of the Companies (Management and
Administration) Rules 2014. The instructions for e-voting are provided
in the Notice.
LISTING WITH STOCK EXCHANGES
The equity shares of the Company continue to remain listed with the BSE
Limited (BSE) and the National Stock Exchange of India Limited (NSE).
The listing fees payable to both the exchanges for the financial year
2014-15 has been paid. The Global Depository Receipts issued by the
Company also continue to be listed on the Luxembourg Stock Exchange.
All outstanding Secured Non-Convertible Debentures issued by the
Company so far, continue to remain listed on the Wholesale Debt Market
segment of NSE.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
Management Discussion and Analysis Report, as stipulated under clause
49 of the Listing Agreement with the Stock Exchanges in India, is
presented in a separate section forming part of the Annual Report.
CORPORATE GOVERNANCE REPORT
Pursuant to Clause 49 of the Listing Agreements with the Stock
Exchanges, a detailed report on Corporate Governance is included in the
Annual Report. A Certificate from a Practicing Company Secretary,
certifying Company''s compliance with the requirements of Corporate
Governance, as stipulated under Clause 49 of the Listing Agreement, is
annexed to the Corporate Governance Report.
AUDITORS & AUDITORS'' REPORT
M/s Walker Chandiok & Co LLP, Chartered Accountants (Firm registration
Number: 001076N), an associate of Grant Thornton, are proposed to be
appointed as Statutory Auditors of the Company for a period of 5(five)
years, to hold office as such from the conclusion of this AGM, in place
of retiring auditors M/s Sharma Goel & Co. LLP, Chartered Accountants,
who have completed their five year term. M/s Walker Chandiok & Co LLP
is having good credentials in the real estate sector and is associated
as statutory auditors of leading listed real estate developers of the
Country. The Company has received a special notice from a member
proposing M/s Walker Chandiok & Co LLP, Chartered Accountants, as
statutory auditors of the Company.
M/s Walker Chandiok & Co LLP has submitted their consent for
appointment and also a requisite certificate, pursuant to the
provisions of Section 139 & 141 of the Companies Act, 2013, confirming
eligibility & satisfaction of criteria for their appointment as
statutory auditors of the Company. The Board recommends their
appointment.
The Notes to the Accounts referred to in the Auditors'' Report are
self-explanatory and therefore do not call for any further explanation.
INFORMATION PURSUANT TO SECTION 217 OF THE COMPANIES ACT, 1956
The information required to be disclosed under Section 217 (1)(e) of
the Companies Act, 1956, read with the Companies (Disclosure of
Particulars in the Report of the Board of Directors) Rules, 1988 with
respect to conservation of Energy, Technology Absorption and Foreign
Exchange Earnings and Outgo, is given in the Annexure and forms part of
this Report.
In terms of the provisions of Section 217 (2A) of the Companies Act,
1956 read with the Companies (Particulars of Employees) Rules, 1975 as
amended, the names and other particulars of the employees are required
to be set out in the Annexure to the Directors'' Report. However, having
regard to the provisions of Section 219(1)(b)(iv) of the said Act, the
Annual Report excluding the aforesaid information, is being sent to all
the Members of the Company and others entitled thereto. Any Member who
is interested in obtaining such particulars may write to the Company
Secretary at the Registered Office of the Company.
DIRECTORS'' RESPONSIBILITY STATEMENT
As required under Section 217 (2AA) of the Companies Act, 1956 (to the
extent applicable) and the Companies Act, 2013 (to the extent notified)
your Directors confirm that:
1. in the preparation of the annual accounts, the applicable accounting
standards have been followed and that there are no material departures
from the same;
2. the Directors 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 as at March 31, 2014 and the profit of the Company for
the year ended on that date;
3. the Directors have taken proper and sufficient care for maintaining
of adequate accounting records in accordance with the provisions of the
Companies Act, 1956 for safeguarding the assets of the Company and for
preventing and detecting fraud and other irregularities; and
4. the Directors have prepared the Annual Accounts of the Company on a
''going concern'' basis.
ACKNOWLEDGEMENT
Your Directors wish to express their gratitude for the continuous
assistance and support received from the investors, clients, bankers,
regulatory and government authorities, during the year. Your Directors
also wish to place on record their deep sense of appreciation for the
contributions made and committed services rendered by the employees of
the Company at various levels, to the growth & success of the Company.
For and on behalf of the Board of Directors
Sd/-
Sameer Gehlaut
Chairman
New Delhi,
August 26, 2014
Mar 31, 2013
Dear Shareholders,
The Directors have pleasure in presenting the Seventh Annual Report
together with the audited accounts of the Company for the financial
year ended March 31, 2013.
FINANCIAL HIGHLIGHTS
The highlights of the financial results of the Company for the
financial year ended March 31, 2013 are as under:
Amount (in Rupees)
Particulars Year ended Year ended
March 31, 2013 March 31, 2012
Profit before
Depreciation / Amortisation 3,446,559,581 239,485,236
Less: Depreciation / Amortisation 33,330,752 31,945,110
Profit before Tax 3,413,228,829 207,540,126
Less: Provision for Tax 727,618,602 63,004,898
Profit after Tax 2,685,610,227 144,535,228
Balance of Profit Brought Forward 87,475,910 29,240,647
Profit Available for Appropriation 2,773,086,137 173,775,875
Transfer from Indiabulls Builders
Limited merger, pursuant to
Scheme of Arrangement 58,454,923
Appropriations:
Interim Dividend on Equity shares 84,80,21,478
Dividend for previous year on
Equity shares issued after the
year end, under ESOP Scheme 189,000
Corporate Dividend Tax on Interim
Dividend on Equity shares 16,658,750
Transfer to General Reserves 268,561,022
Transfer to Capital Redemption Reserves 100,000,000
Corporate Dividend Tax for previous
year on Equity shares issued after the
year end, under ESOP Scheme 30,660
Transferred to Debenture
Redemption Reserve 1,334,560,908 144,535,228
Balance of Profit Carried Forward 205,283,979 87,475,910
REVIEW OF OPERATIONS & BUSINESS UPDATE:
Key Financial Highlights:
- Total Sales in FY ''13 increased to Rs. 3002 crores as against the sales
of Rs. 1982 crores in FY ''12.
- Annualized rental income in FY ''13 increased to Rs. 486 crores as
against Rs. 354 crores in FY ''12
- The total income from operations for the year FY ''13 stood at Rs.
1,300.56 crores and the Profit after tax (PAT) stood at Rs. 175.47
crores.
- While most of the other Real Estate companies got downgraded, the
Company has retained its A (A Plus) rating for its long term debt
(Term Loans and NCDs) and A1 (A One Plus) rating for its short-term
debt, which is the highest rating that can be assigned for short-term
debt. With this the Company enjoys ease and most favorable terms on the
loans/facilities being availed from the Banks/Financial Institutions.
The ratings are the manifestation of the Company''s strong fundamentals,
low gearing and execution track record and juxtapose its long term
growth prospects.
Project development:
The Company has 25 ongoing projects totaling 72.86 million square feet,
2588 acres of SEZ development and additional land bank of 1003.54
acres. Each project bears a stamp of thoughtful solutions and highest
quality. Company''s projects has optimum mix of different categories and
therefore the Company has diversified portfolio of super premium
category, premium category & mid income category.
>- The Company has launched following projects in FY ''13:
BLU, Worli, Mumbai - 7-Star luxury residential complex spread over 10
acres in South Mumbai with breathtaking sea views. The project launched
at Rs. 36,000 psft in June 2012 and within a short span of time it has
achieved residential sale rate of Rs. 58,399 psft. Office space of
2,50,000 sq ft at Rs 25,000 psft is already contracted. 45% of the
saleable area of this project is already sold with cash flows (after
all costs) of Rs. 4425 Crores. Revenue recognition in P&L is expected
during the current FY ''14.
IB Golf City, Savroli, MMR - Premium residential township with 18-hole
golf course spread over 350 acres of greens.
Key Operational Highlights
Presently the Company is developing both residential and commercial
projects mainly concentrating in the super metros and the tier I
cities. The projects include from mid-income housing projects to
high-end residential projects. Both the residential and the commercial
projects are located in the areas of high growth with regards to
infrastructure, connectivity and have high future potential. These
projects are located in the Metros i.e. Panvel (Mumbai Metropolitan
Region), Chennai, Gurgaon (NCR), and other prime Tier I cities like
Ahmedabad, Madurai & Indore etc.
- The total Area under Development (AUD) is increased from 71.55 msft
as on March 31, 2012 to 72.86 msft as on March 31, 2013.
- Out of AUD of 72.86 msft, 65.04 msft is under residential scope and
7.82 msft is under commercial scope.
- Around 95% of the AUD is in the Metro cities i.e. major centers of
Greater Mumbai & Mumbai Metropolitan Region (MMR), National Capital
Region (NCR) and Chennai.
- Total Area under construction (AUC) increased from 17.17 msft as on
March 31, 2012 to 19.44 msft (net of handovers).
Land Bank:
Land reserves indicate the future development and expansion potential
of the Company. The Company intends to acquire land in the areas which
are of strategic importance and high demand centers The size and
location of the company''s land reserves allows it to respond quickly
and effectively to the changes in the market conditions, regulatory
environment and the overall demand
- Added approx. 220 acres land (mainly in Mumbai Metropolitan Region
and National Capital Region) in FY ''13.
- Total Land bank as at March 31, 2013 stands at 1003.54 acres,
excluding 2588 acres land of Nashik SEZ, mainly in regions of Mumbai
Metropolitan Region (MMR), National Capital Region (NCR) and Chennai
(nearly 60% is in the NCR region, 22% in the MMR region and 18% in
Chennai region).
SIGNIFICANT DEVELOPMENTS & UPDATES
BUYBACK OF EQUITY SHARES OF THE COMPANY
The Buy-back offer of the Company, which commenced w.e.f. April 30,
2012, closed on December 14, 2012, as scheduled. During Buy-back, the
Company through Stock Exchange mechanism, bought back 5,00,00,000
equity shares, being 83.33% of the total buyback offer quantity of
6,00,00,000 equity shares at an average price of Rs. 54.64 per share.
Funds amounting to Rs. 273.21 Crores appox. were utilized for the
aforesaid purpose. Post Buy-back, the Issued & Paid-up capital of the
Company stood at Rs. 848,021,478/-, comprising 424,010,739 equity shares
of Rs. 2/- each.
RAISING OF FUNDS THROUGH ISSUE OF SECURED NON-CONVERTIBLE DEBENTURES
During the financial year 2012-13, the Company successfully raised
funds aggregating Rs. 300 Crores through issue of Secured Non-Convertible
Debentures to Yes Bank Limited. During Q1 of FY 2013-14, the company
aised funds aggregating Rs. 500 Crores through issue of Secured
Non-Convertible Debentures to Axis Bank Limited. These Debentures
stands listed on the Wholesale Debt Market segment of the National
Stock Exchange of India Limited.
DIVIDEND
For the FY 2012-13, an Interim Dividend was declared by the Board on
April 25, 2013, at the rate of Rs. 2/- per equity share on face value of
Rs. 2/- each. Your Directors recommend that the aforesaid interim
dividend be approved as final dividend for the financial year 2012-13.
EMPLOYEES STOCK OPTIONS
The disclosures required to be made in the Directors'' Report in respect
of the stock options granted under various employee stock option
schemes in force in the Company, in terms of the format prescribed
under SEBI (Employee Stock Option Scheme and Stock Purchase Scheme)
Guidelines 1999, are set out in the annexures forming a part of this
Report.
PUBLIC DEPOSITS
The Company has not accepted any deposits from the public during the
year under review.
SUBSIDIARIES
The statement pursuant to Section 212(1) (e) of the Companies Act, 1956
relating to subsidiary companies forms a part of the financial
statements.
In accordance with the general circular issued by the Ministry of
Corporate Affairs, Government of India, the Balance Sheet, Statement of
Profit and Loss and other documents of subsidiary companies are not
being attached with the Balance Sheet of the Company. However the
financial information of the subsidiary companies is disclosed in the
Annual Report in compliance with the said circular. The Company will
make available the Annual Accounts of the subsidiary companies and the
related detailed information to any member of the Company who may be
interested in obtaining the same. The annual accounts of the subsidiary
companies will also be kept open for inspection at the Registered
Office of the Company and that of the respective subsidiary companies.
The Consolidated Financial Statements presented by the Company include
the financial results of its subsidiary companies.
DIRECTORS
In accordance with the provisions of Section 255 and 256 of the
Companies Act, 1956 and Article 129 of the Articles of Association of
the Company, Mr. Aishwarya Katoch (DIN: 00557488) and Mr. Labh Singh
Sitara (DIN: 01724648), Directors, retire by rotation at the ensuing
Annual General Meeting of the Company and being eligible, have offered
themselves for reappointment.
Brief resumes of the Directors seeking reappointment, nature of their
expertise in specific functional areas, names of companies in which
they hold directorships and memberships/chairmanships of Board
Committees, as stipulated under Clause 49 of Listing Agreement with the
Stock Exchanges in India, are provided in the Report on Corporate
Governance, forming part of the Annual Report.
LISTING WITH STOCK EXCHANGES
The equity shares of the Company continue to remain listed with the BSE
Limited (BSE) and the National Stock Exchange of India Limited (NSE).
The listing fees payable to both the exchanges for the financial year
2013-14 has been paid. The Global Depository Receipts issued by the
Company also continue to be listed on the Luxembourg Stock Exchange.
All outstanding Secured Non-Convertible Debentures issued by the
Company so far, continue to remain listed on the Wholesale Debt Market
segment of NSE.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
Management Discussion and Analysis Report, as stipulated under clause
49 of the Listing Agreement with the Stock Exchanges in India, is
presented in a separate section forming part of the Annual Report.
CORPORATE GOVERNANCE REPORT
Pursuant to Clause 49 of the Listing Agreements with the Stock
Exchanges, a detailed report on Corporate Governance is included in the
Annual Report. A Certificate from a Practicing Company Secretary,
certifying Company''s compliance with the requirements of Corporate
Governance, as stipulated under Clause 49 of the Listing Agreement, is
annexed to the Corporate Governance Report.
AUDITORS & AUDITORS'' REPORT
M/s Sharma Goel & Co., Chartered Accountants (Registration no.:
000643-N), Auditors of the Company will retire at the conclusion of the
ensuing Annual General Meeting and being eligible, offer themselves for
reappointment. The Company has received a certificate from the Auditors
to the effect that their reappointment, if made, would be in accordance
with Section 224(1B) of the Companies Act, 1956. The Board recommends
their re-appointment.
The Notes to the Accounts referred to in the Auditors'' Report are
self-explanatory and therefore do not call for any further explanation.
INFORMATION PURSUANT TO SECTION 217 OF THE COMPANIES ACT, 1956
The information required to be disclosed under Section 217 (1)(e) of
the Companies Act, 1956, read with the Companies (Disclosure of
Particulars in the Report of the Board of Directors) Rules, 1988 with
respect to conservation of Energy, Technology Absorption and Foreign
Exchange Earnings and Outgo, is given in the Annexure and forms part of
this Report.
In terms of the provisions of Section 217 (2A) of the Companies Act,
1956 read with the Companies (Particulars of Employees) Rules, 1975 as
amended, the names and other particulars of the employees are required
to be set out in the Annexure to the Directors'' Report. However, having
regard to the provisions of Section 219(1)(b)(iv) of the said Act, the
Annual Report excluding the aforesaid information, is being sent to all
the Members of the Company and others entitled thereto. Any Member who
is interested in obtaining such particulars may write to the Company
Secretary at the Registered Office of the Company.
DIRECTORS'' RESPONSIBILITY STATEMENT
As required under Section 217 (2AA) of the Companies Act, 1956, your
Directors confirm that:
1. in the preparation of the annual accounts, the applicable
accounting standards have been followed and that there are no material
departures from the same;
2. the Directors 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 as at March 31, 2013 and the profit of the Company for
the year ended on that date;
3. the Directors have taken proper and sufficient care for maintaining
of adequate accounting records in accordance with the provisions of the
Companies Act, 1956 for safeguarding the assets of the Company and for
preventing and detecting fraud and other irregularities; and
4. the Directors have prepared the Annual Accounts of the Company on a
''going concern'' basis.
ACKNOWLEDGEMENT
Your Directors wish to express their gratitude for the continuous
assistance and support received from the investors, clients, bankers,
regulatory and government authorities, during the year. Your Directors
also wish to place on record their deep sense of appreciation for the
contributions made and committed services rendered by the employees of
the Company at various levels, to the growth & success of the Company.
For and on behalf of the Board of Directors
Sd/-
Sameer Gehlaut Chairman
New Delhi,
September 3, 2013
Mar 31, 2012
Dear Shareholders,
The Directors have pleasure in presenting the 6th Annual Report
together with the audited accounts of the Company for the financial
year ended March 31,2012.
FINANCIAL HIGHLIGHTS
The highlights of the financial results of the Company for the
financial year ended March 31,2012 are as under:
(Amount in Rupees)
Particulars For the year ended For the year ended
March 31,2012 March 31,2011
Profit before Depreciation
/ Amortisation 239,485,236 708,916,844
Less: Depreciation/
Amortization 31,945,110 30,341,924
Profit before Tax 207,540,126 678,574,920
Less: Provision for Tax 63,004,898 220,521,056
Profit after Tax 144,535,228 458,053,864
Balance of Profit
Brought Forward 29,240,647 192,405,560
Profit Available for
Appropriation 173,775,875 650,459,424
Transfer from India bulls
Builders Limited merger,
pursuant to Scheme of 58,454 923 -
Arrangement
Appropriations:
Proposed Dividend on
Equity shares - 120,684,222
Dividend for previous year
on Equity shares issued
after the year end, 1,89,000 -
under ESOP Scheme
Corporate Dividend Tax on
Proposed Dividend on
Equity shares - 19,577,998
Transfer to General Reserves - 22,902,693
Corporate Dividend Tax for
previous year on Equity
shares issued after 30,660 -
the year end, under ESOP
Scheme
Transferred to Debenture
Redemption Reserve 144,535,228 458,053,864
Balance of Profit Carried
Forward 87,475,910 29,240,647
REVIEW OF OPERATIONS & BUSINESS
UPDATE*
Key Financial Highlights:
- The total income from operations for the year FY '12stoocl at Rs'
1'391 -60 Crores and tne Profit after tax (PAT) stood at Rs. 168.19
Crores.
The total new leased area in FY '12 stands at 0.60 Total Sales for the
year FY'12 was Rs. 1,982.04 Crores msft With this the total, |eased area
stood at 2.21 for an area of 3.54 msft. msft as on March 31( 2012 and
the marquee clients include big corporate houses like Starbucks, Yes
Bank, Deloitte, GE Shipping, Franklin Templeton etc. among the few.
The Company has maintained its A (Single A Plus) ratings for its long
term debt (Term loans and NCDs) and PR1 (PR One Plus) rating for its
short term facilities for tenure up to one year (This is the highest
rating that can be assigned for short-term debt). The ratings are the
manifestation of the Company's strong fundamentals, low gearing and
execution track record and juxtapose its long term growth prospects.
Key Operational Highlights
Project development:
Presently the Company is developing both residential and commercial
projects mainly concentrating in the metros and the tier I cities. The
projects include from mid-income housing projects to high-end
residential projects. Both the residential and the commercial projects
are located in the areas of high growth with regards to infrastructure,
connectivity and have high future potential. These projects are located
in the Metros i.e. Panvel (Mumbai Metropolitan Region), Chennai,
Gurgaon (NCR), and other prime Tier I cities like Ahmadabad, Madurai &
Indore etc.
The total Area under Development (AUD) increased by 10.63 msft in FY
'12. With this total AUD increased by 17.45% from 60.92 msft as on
March 31, 2011 to 71.55 msft as on March 31, 2012.
Out of AUD of 71.55 msft nearly 62.73 msft is under residential scope
and 8.82 msft is under commercial scope.
More than 90% of the AUD is in the Metro cities i.e. major centers of
Greater Mumbai & Mumbai Metropolitan Region (MMR), National Capital
Region (NCR) and Chennai.
Total AUD has optimum mix of different categories and therefore
India bulls has diversified portfolio with 5.5 msft AUD under super
premium category (for which the expected average sale price is Rs.
25,000 per sft) 38.64 msft AUD is under premium category (for which the
expected average sale price is Rs. 5,000 per sft) and 27.40 msft AUD is
under mid income category (for which the expected average sale price is
Rs. 2,500 per sft).
Total Area under Construction (AUC) increased from 17.04 msft as on
March 31,2011 to 17.17 msft (net of handovers) across 103 towers across
India.
Land Bank:
Land reserves indicate the future development and expansion potential
of the Company. The Company intends to acquire land in the areas which
are of strategic importance and high demand centers. The size and
location of the Company's land reserves allows it to respond quickly
and effectively to the changes in the market conditions, regulatory
environment and the overall demand
Total land acquired in FY '12 is420.47 acres (mainly in Mumbai
Metropolitan Region and National Capital Region).
Total land bank of India bulls stands at 836.03 Acres in regions of
Mumbai Metropolitan Region (MMR), National Capital Region(NCR) and
Chennai.
Out of total land bank of 836.03 acres nearly 46% is in the NCR region,
33% in the MMR region and rest 21% in Chennai region.
Future Development Potential:
With its strong land reserves located in high growth centers, the
Company envisages total developmental potential in excess of 525 msft
and total revenue potential in excess of Rs. 36,000 Crores. Some of the
projects that are planned to be launched in the year FY'13 are:
BLU, World, Mumbai - 7-Star luxury residential complex spread over 10
acres in South Mumbai with breathtaking sea views IB City, Sonepat,
Haryana - 150 Acres of integrated township with plotted development,
commercial and group housing
IB Golf City, Savroli, MMR - Premium residential township with 18-hole
golf course spread over 350 acres of greens
IB Enigma II, Seel 04, Gurgaon - Super premium residential complex with
Villa's and high rise towers spread over 34 acres
IB Imperial, Sec 106, Gurgaon - 54 Acres of Integrated township with
high end residential apartments, villa's, luxury retail and commercial
IB Commercial Centre, Sec 109, Gurgaon - Over 5 acres of commercial
development on the Dwarka Expressway
IB Greens, Chennai - Premium residential township with high rise towers
near the IT corridor spread over 32 acres
IB Mint, Sec 104, Gurgaon - Iconic Commercial tower on the Dwarka
Expressway
IB Greens, Indore -15 Acres of Integrated township with high end
residential apartments, retail and commercial in the heart of the city
IB Mega Mall, Agra & Kanpur - Destination mall/ multiplex in the heart
of the city
SIGNIFICANT DEVELOPMENTS & UPDATES
RESTRUCTURING OF POWER AND INFRASTRUCTURE BUSINESS OF THE COMPANY
During the financial year 2011-12, the Scheme of arrangement under the
provisions of Sections 391-394 of the Companies Act, 1956, among the
Company, India bulls Infrastructure and Power Limited ("IIPL"),
India bulls Builders Limited ("IBL"), India bulls Power Limited.
("IPL"), Poena Power Supply Limited ("PPSL") and their respective
shareholders and creditors ("Scheme") was approved by the Humble High
Court of Delhi, New Delhi, vide its order dated October 17,2011 and
came into effect on November 25,2011, with effect from the 1 st April,
2011 i.e. the Appointed Date.
Post effectiveness of the aforesaid Scheme, equity shares of IIPL got
listed on BSE & NSE w.e.f. July 30,2012. Further, on payment of full
and final call money by holders of partly-paid equity shares, issued by
the Company in term of the Scheme, such partly paid equity shares
became fully paid-up, ranking pari-passu with existing equity shares of
the Company.
MERGER OF A SUBSIDIARY WITH INDIABULLS POWER LIMITED.
In terms of the Court approved Scheme of Arrangement, for merger of
India bulls Infrastructure Development Limited (IIDL), subsidiary of the
Company, with India bulls Power Limited. (IPL), the Company, being a
shareholder of IIDL, was allotted shares in IPL, which as on date is
8.29% of IPL's present paid-up equity capital.
BUYBACK OF EQUITY SHARES OF THE COMPANY
During the financial year 2011-12, the Board of Directors of the
Company approved Buy-back of up to 6 crore equity shares of the Company
from the open market through the Stock Exchange mechanism, at a price
not exceeding Rs. 75/- per share, involving an aggregate amount, not
exceeding Rs. 450 crores i.e. within 10% of the erstwhile paid-up
equity share capital and free reserves of the Company, in accordance
with sections 77A, 77AA and 77B of the Companies Act, 1956. Upon
receipt of approval from Securities and Exchange Board of India (SEBI),
the Company commenced Buy-back of its equity shares w.e.f. April 30,
2012. The Buy-back offer shall remain open up to December 14, 2012.
However, the Board may close the same at an early date, subject to
completion of buy-back of minimum number of equity shares specified in
the Public Announcement i.e. 1.5 Crores.
Uptill August 24, 2012, the Company has bought-back 32,336,206 equity
shares, constituting 53.89% of total shares, which were available for
buy-back under the Buy- back offer. Upon extinguishment of 25,861,404
equity shares, out of aforesaid shares, the Issued and Paid-up capital
of the Company as on August 24, 2012 stood at Rs. 896,298,670/-,
comprising 448,149,335 equity shares of Rs. 21- each.
DIVIDEND
In anticipation of the future fund requirements for various projects,
being undertaken by the Company, its subsidiaries and associates, the
Board of Directors of the Company have not recommended any dividend for
the FY 2011-12.
EMPLOYEES STOCK OPTIONS
The disclosures required to be made in the Directors' Report in respect
of the stock options granted under various employee stock option
schemes in force in the Company, in terms of the format prescribed
under SEBI (Employee Stock Option Scheme and Stock Purchase Scheme)
Guidelines 1999, are set out in the annexure forming a part of this
Report.
The Shareholders of the Company have approved the launch of a new ESOP
Scheme titled as 'India bulls Real Estate Limited Employee Stock Option
Scheme - 2011'. However, no option has yet been granted under this
Scheme.
PUBLIC DEPOSITS
The Company has not accepted any deposits from the public during the
year under review.
SUBSIDIARIES
The statement pursuant to Section 212(1) (e) of the Companies Act, 1956
relating to subsidiary companies forms a part of the financial
statements.
In accordance with the general circular issued by the Ministry of
Corporate Affairs, Government of India, the Balance Sheet, Profit and
Loss Account and other documents of the subsidiary companies are not
being attached with the Balance Sheet of the Company. However the
financial information of the subsidiary companies is disclosed in the
Annual Report in compliance with the said circular. The Company will
make available the Annual Accounts of the subsidiary companies and the
related detailed information to any member of the Company
who may be interested in obtaining the same. The annual accounts of the
subsidiary companies will also be kept open for inspection at the
Registered Office of the Company and that of the respective subsidiary
companies. The Consolidated Financial Statements presented by the
Company include the financial results of its subsidiary companies.
DIRECTORS
Consequent to managerial restructuring within India bulls Group
companies, Mr. Vipul Bansal has relinquished his charge as the Joint
Managing Director of the Company and has resigned from the directorship
of the Company w.e.f. July 25, 2012. Mr. Narendra Gehlaut, the other
Joint Managing Director of the Company, has been re- designated as
"Managing Director" to look after the entire operations of the Company.
In accordance with the provisions of Section 255 and 256 of the
Companies Act, 1956 and Article 129 of the Articles of Association of
the Company, Mr. Narendra Gehlaut (DIN: 01246303) and Mr. Prem Prakash
Mirdha (DIN: 01352748), Directors, retire by rotation at the ensuing
Annual General Meeting of the Company and being eligible, have offered
themselves for reappointment.
Brief resumes of the Directors seeking reappointment, nature of their
expertise in specific functional areas, names of companies in which
they hold directorships and memberships/chairmanships of Board
Committees, as stipulated under Clause 49 of Listing Agreement with the
Stock Exchanges in India, are provided in the Report on Corporate
Governance, forming part of the Annual Report.
LISTING WITH STOCK EXCHANGES
The equity shares of the Company continue to remain listed with the BSE
Limited (BSE) and the National Stock Exchange of India Limited (NSE).
The listing fees payable to both the exchanges for the financial year
2012-2013 have been paid. The Global Depository Receipts issued by the
Company also continue to be listed on the Luxembourg Stock Exchange.
The Secured Non- Convertible Debentures issued by the Company during FY
2010-11, continue to remain listed on the Wholesale Debt Market segment
of NSE.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
Management Discussion and Analysis Report, as stipulated under clause
49 of the Listing Agreement with the Stock Exchanges in India, is
presented in a separate section forming part of the Annual Report.
CORPORATE GOVERNANCE REPORT
Pursuant to Clause 49 of the Listing Agreements with the Stock
Exchanges, a detailed report on Corporate Governance is included in the
Annual Report. A Certificate from a Practicing Company Secretary,
certifying Company's compliance with the requirements of Corporate
Governance, as stipulated under Clause 49 of the Listing Agreement, is
annexed to the Corporate Governance Report.
AUDITORS & AUDITORS' REPORT
M/s Sharma Goel & Co., Chartered Accountants (Registration no.:
000643-N), Auditors of the Company will retire at the conclusion of the
ensuing Annual General Meeting and being eligible, offer themselves for
reappointment. The Company has received a certificate from the Auditors
to the effect that their reappointment, if made, would be in accordance
with Section 224(1 B) of the Companies Act, 1956. The Board recommends
their re-appointment.
The Notes to the Accounts referred to in the Auditors' Report are
self-explanatory and therefore do not call for any further explanation.
INFORMATION PURSUANT TO SECTION 217 OF THE COMPANIES ACT, 1956
The information required to be disclosed under Section 217 (1)(e) of
the Companies Act, 1956, read with the Companies (Disclosure of
Particulars in the Report of the Board of Directors) Rules, 1988 with
respect to conservation of Energy, Technology Absorption and Foreign
Exchange Earnings and Outgo, is given in the Annexure and forms part of
this Report.
In terms of the provisions of Section 217 (2A) of the Companies Act,
1956 read with the Companies (Particulars of Employees) Rules, 1975 as
amended, the names and other particulars of the employees are required
to be set out in the Annexure to the Directors' Report. However, having
regard to the provisions of Section 219(1)(b)(iv) of the said Act, the
Annual Report excluding the aforesaid information, is being sent to all
the Members of the Company and others entitled thereto. Any Member who
is interested in obtaining such particulars may write to the Company
Secretary at the Registered Office of the Company.
DIRECTORS' RESPONSIBILITY STATEMENT
As required under Section 217 (2AA) of the Companies Act, 1956, your
Directors confirm that:
1. in the preparation of the annual accounts, the applicable accounting
standards have been followed and that there are no material departures
from the same;
2. the Directors 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 as at 31st March, 2012 and the profit of the Company
for the year ended on that date;
3. the Directors have taken proper and sufficient care for maintaining
of adequate accounting records in accordance with the provisions of the
Companies Act, 1956 for safeguarding the assets of the Company and for
preventing and detecting fraud and other irregularities; and
4. the Directors have prepared the Annual Accounts of the Company on a
'going concern' basis.
ACKNOWLEDGEMENT
Your Directors wish to express their gratitude for the continuous
assistance and support received from the investors, clients, bankers,
regulatory and government authorities, during the year. Your Directors
also wish to place on record their deep sense of appreciation for the
contributions made and committed services rendered by the employees of
the Company at various levels, to the growth & success of the Company.
For and on behalf of the Board of Directors
Sameer Gehlaut
Chairman
New Delhi
August 30,2012
Mar 31, 2010
Not Available
Mar 31, 2009
The Directors have pleasure in presenting the 3rd Annual Report
together with the audited statement of accounts of the Company
forthefinancialyearended March 31, 2009.
FINANCIAL HIGHLIGHTS
The highlights of the financial resultsofthe Company
forthefinancialyear ended March 31,2009.
Amount (in Rs.)
Year ended Year ended
Particulars March 31,2009 March 31,2008
Profit before Depreciation/
Amortisation 259,653,685 6,053,703,909
Less: Depreciation/Amortisation 25,495,181 20,834,704
Profit before Tax 234,158,504 6,032,869,205
Less: Provision for Tax 68,543,221 1,355,878,449
Profit after Tax 165,615,283 4,676,990,756
Balance of Profit brought
forward 43,496,792 18,079,330
Profit available for
appropriation 209,112,075 4,695,070,086
Appropriations
Dividend paid on Preference
shares 103,626,032 71,400,548
Corporate Dividend Tax on
Preference shares 17,611,245 12,134,523
Proposed Dividend on Preference
shares 33,913,974 28,184,427
Corporate Dividend Tax on
Proposed Dividend on Preference
shares 5,763,680 4,789,943
Proposed Dividend on Equity shares - 3,476,528,721
Corporate Dividend Tax on Proposed
Dividend on Equity shares - 590,836,056
Transfer to General Reserves - 467,699,076
Balance of Profit Carried
Forward 48,197,144 43,496,792
REVIEW OF OPERATIONS
The year 2008-2009 has been a year of financial turmoil with economies
the world over taking a severe beating because of the prevailing
recessionary conditions which have left no business sector untouched.
The times were particularly hard for the realty sector which witnessed
a sharp dwindling of new business opportunities and almost complete
lack of takers for the built up projects. What made the situation worse
was the liquidity crunch coupled with a sharp increase in the costs of
financing, in the market.
These unhealthy developments put the margins under severe pressure, the
result being a plummeting profitability.
Your Company went through a bad phase as well with a drop in operating
income and profitability in the year 2008-2009 as compared to the
financial year 2007-2008. The operating revenues and Profits after tax
were Rs. 4502.81 lacs and Rs. 1656.15 lacs respectively in the
financial year 2008-2009, compared to Rs. 4,777.29 lacs and
Rs.46,769.91 lacs respectively in the financialyear2007-2008.
However the scenario has brightened now with the world economies
showing signs of emerging out of recession and the economic situation
in the country looking upwards.
SIGNIFICANT DEVELOPMENTS
- Acquisition of a foreign Company and Issue of Global Depository
Receipts
During the year under review, the Company has acquired the entire
paid-up capital of Dev Property Development Limited (DPD), a company
incorporated and registered in the Isle of Man, pursuant to a Scheme of
Arrangement, approved by the High Court of Justice, Isle of Man. In
terms of the approved Scheme, the Company had issued 16,685,580 CDRs,
an equivalent number of underlying Equity shares of face value Rs. 2
each, to the shareholders of DPD, in consideration for the acquisition
of DPD shares by the Company.
- Scheme of Amalgamation of Subsidiaries
During the year under review, pursuant to a Court approved Scheme of
Amalgamation Indiabulls Power Services Limited, a wholly owned
subsidiary of the Company, was merged with Sophia Power Company
Limited, a majority owned subsidiary of the Company now known as
Indiabulls Power Limited. (IPL). Consequent to the allotment of
additional Equity shares by IPL to the Company, in terms of the
approved Scheme, the Companys stake was increased to 71.43% in IPL.
- Raising of funds through Qualified Institutional Placement
The Company has successfully raised funds aggregating Rs.
2656,49,99,705/- through QIP placement of 14,35,94,593 Equity shares of
the face value of Rs.2 each at a issue price of Rs.185 per share, with
Qualified Institutional Buyers. This has resulted in increasing the
outstanding Equity Shares of the Company from 25,75,20,646 to
40,11,15,239.
- Filing of Draft Red Herring Prospectus by Indiabulls Power Limited.
Indiabulls Power Limited., a subsidiary of the Company, has filed its
Draft Red Herring Prospectus with the Securities and Exchange Board of
India ("SEBI") on July 15, 2009 in relation to
itslnitialPublicOfferofequity shares.
DIVIDENDS
During the financial year 2008-2009 the Company has paid preference
dividend @10% aggregating Rs.137,540,006/- (excluding Corporate
Dividend Tax thereon) to Oberon Limited, a foreign entity, as per the
agreed terms.
As regards the payment of dividend on Equity shares, your directors, in
anticipation of the future fund requirements for various projects,
being undertaken by the Company through its subsidiaries and
associates, did not recommend any dividend.
WARRANTS/EMPLOYEES STOCK OPTIONS
During the Financial Year, the Employee Stock Option Scheme titled
Indiabulls Real Estate Limited Stock Option Scheme - 2008 (the "ESOS
Scheme 2008"), covering 15,00,000 stock options, was cancelled and
withdrawn.
However, with a view to reward performance and to retain talented
employees of the Company and its subsidiaries, a new scheme titled
Indiabulls Real Estate Limited Employee Stock Option Scheme 2008 II
(the "ESOS Scheme 2008 II") was launched. The Scheme covers 20 lacs
stock options convertible into an equivalent number of Shares of face
value of Rs. 2 each. The Compensation Committee has granted the said 20
lacs options to eligible employees, at an exercise price of Rs. 110.50.
The stock options so granted shall vest in eligible employees within 10
years, with effect fromjanuary 31,2010, the first vestingdate.
Subsequent to year end, upon exercise of stock options vested in terms
of Indiabulls Real Estate Limited - Employees Stock Option Scheme 2006
by certain eligible employees and receipt of full consideration
therefor, the Board at its meeting held on August 11, 2009, has
allotted an aggregate of 2,25,000 Equity shares of face value Rs. 21-
each to such employees. Consequent to this allotment, the paid-up
Equity share capital of the Company stands increased from Rs.
80,22,30,478/- divided into 40,11,15,239 Equity shares of face value
Rs. 21- each to Rs. 80,26,80,478/- divided into 40,13,40,239 Equity
shares of face value Rs. 2/-each.
The disclosures required to be made in the Directors Report in respect
of the stock options granted under various employee stock option
schemes in force in the Company, in terms of the format prescribed
under SEBI (Employee Stock Option Scheme and Stock Purchase Scheme)
Guidelines 1999, are set out in the annexures forming a part of this
report.
The Company had allotted 1,50,00,000 warrants to its Promoters on
August 9, 2007 and 4,30,00,000 warrants to its Promoters and Joint
Managing Directors on November 5, 2007 on a preferential basis,
convertible into equivalent number of its equity shares. The warrant
holders had not exercised their right to convert their warrants into
Equity shares hence, the warrants allotted in their favour were lapsed
and the 10% upfront money paid at the time of allotment of warrants
were forfeited and credited to Capital Reserve.
FIXED DEPOSITS
The Company has not accepted any deposits from the public duringtheyear
under review.
SUBSIDIARIES
The statement pursuant to Section 212(1) (e) of the Companies Act, 1956
relating to subsidiary companies forms a part of the financial
statements.
In terms of approval granted by the Ministry of Corporate Affairs,
Government of India vide letter No. 47/515/2009-CL- III dated
30.07.2009 under Section 212(8) of the Companies Act, 1956, copies of
the Balance Sheet, Profit and Loss Account, Reports of the Board of
Directors and Auditors of the subsidiaries of the Company as of March
31, 2009 have not been attached with the Balance Sheet of the Company.
These documents will be made available upon request by any
Member of the Company interested in obtaining the same. However, as
directed by the Ministry of Corporate Affairs, the financial data of
the subsidiaries have been furnished under Details of Subsidiaries
forming part of the Annual Report. Further, pursuant to Accounting
Standard AS-21 issued by The Institute of Chartered Accountants of
India, Consolidated Financial Statements presented by the Company
includes financial information of its subsidiaries.
DIRECTORS
In accordance with the provisions of Section 255 and 256 of the
Companies Act, 1956 and the Article 129 of the Articles of Association
of the Company Mr. Prem Prakash Mirdha, Mr. Narendra Gehlaut and Mr.
Vipul Bansal retire by rotation at the ensuing Annual General Meeting
of the Company and being eligible offer themselves for reappointment.
Further, the term of office of Mr. Narendra Gehlaut and Mr. Vipul
Bansal, as Joint Managing Directors of the Company, shall come to an
end on the 8th of January 2010. In order to have the continued benefit
of their acumen and experience, the Board has proposed to reappoint
them as Joint Managing Directors, for a further period of five years
subsequent to the expiry of theirinitialterm as aforesaid, i.e.
w.e.f.January 9, 2010.
Brief resume of the Directors seeking reappointment, nature of their
expertise in specific functional areas and names of companies in which
they hold directorships and memberships/ chairmanships of Board
Committees, as stipulated under Clause 49 of Listing Agreement with the
Stock Exchanges in India, are provided in the Report on Corporate
Governance forming part of the Annual Report.
LISTING WITH STOCK EXCHANGES
The equity shares of the Company continue to remain listed with the
Bombay Stock Exchange Limited (BSE) and the National Stock Exchange of
India Limited (NSE). The listing fees payable to both the exchanges for
the financial year 2009-2010 have been paid. The Global Depository
Receipts issued by the Company continue to be listed on the Luxembourg
Stock Exchange.
MANAGEMENT DISCUSSION ANDANALYSIS REPORT
Managements Discussion and Analysis Report for the year under review,
as stipulated under clause 49 of the Listing Agreement with the Stock
Exchanges in India, is presented in a separate section forming part of
the Annual Report.
CORPORATE GOVERNANCE REPORT
Pursuant to clause 49 of the Listing Agreements with the Stock
Exchanges, a detailed report on Corporate Governance is included in the
Annual Report. A Practicing Company Secretarys Certificate certifying
the Companys compliance with the requirements of Corporate Governance
stipulated under clause 49 of the Listing Agreement is attached with
the Corporate Governance Report.
AUDITORS &AUDITORS REPORT
M/s Ajay Sardana Associates, Chartered Accountants, Auditors of the
Company will retire at the conclusion of the ensuing Annual General
Meeting and being eligible offer themselves for reappointment. The
Company has received a certificate from the Auditors to the effect that
their reappointment, if made would be in accordance with Section 224(1
B) of the Companies Act, 1956. The Board recommends their
re-appointment.
The Notes to the Accounts referred to in the Auditors Report are self
- explanatory and therefore do not call for any further explanation.
INFORMATION PURSUANT TO SECTION 217 OF THE COMPANIESACT.1956
The information required to be disclosed under Section 217 (1) (e) of
the Companies Act, 1956, read with the Companies (Disclosure of
Particulars in the Report of the Board of Directors) Rules, 1988 with
respect to conservation of Energy, Technology Absorption and Foreign
Exchange Earnings and Outgo, is given in the Annexure and forms a part
of this Report.
In terms of the provisions of Section 217 (2A) of the Companies Act,
1956 read with the Companies (Particulars of Employees) Rules, 1975 as
amended, the names and other particulars of the employees are required
to be set out in the Annexure to the Directors Report. However, having
regard to the provisions of Section 219(1) (b) (iv) of the said Act,
the Annual Report excluding the aforesaid information is being sent to
all the Members of the Company and others entitled thereto. Any member
who is interested in obtaining such particulars may write to the
Company Secretary at the Registered Office of the Company.
DIRECTORSRESPONSIBILITY STATEMENT
As required under Section 217 (2AA) of the Companies Act, 1956 your
Directors confirm that:
1. in the preparation of the annual accounts, the applicable
accounting standards have been followed and that there are no material
departures from the same;
2. the Directors 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 as at 31st March, 2009 and the profit of the Company for
the year ended on that date;
3. the Directors have taken proper and sufficient care for maintaining
of adequate accounting records in accordance with the provisions of the
Companies Act, 1956 for safeguarding the assets of the Company and for
preventing and detecting fraud and other irregularities; and
4. the Directors have prepared the Annual Accounts of the Company on
agoing concernbasis.
ACKNOWLEDGEMENT
Your Directors wish to express their gratitude for the continuous
assistance and support received from the investors, clients, bankers,
regulatory and government authorities, during the year. Your Directors
also wish to place on record their deep sense of appreciation for the
contributions made and committed services rendered by the employees of
the Company at various levels, to the growth & success of the Company.
For and on behalf of the Board of Directors
Sameer Gehlaut
Chairman
New Delhi
September 2,2009