Mar 31, 2023
BOARDâS REPORT
The Directors present herewith their Report and the Audited Financial Statements for the financial year ended 31 March 2023.
Standalone |
Consolidated |
|||
Particulars |
Financial Year ended |
Financial Year ended |
||
31 March 2023 |
31 March 2022 |
31 March 2023 |
31 March 2022 |
|
Revenue from Operations |
467,491.98 |
324,952.73 |
509,091.12 |
380,901.65 |
Profit before Finance costs and Depreciation |
44,583.48 |
30,934.85 |
46,277.94 |
33,790.99 |
Finance costs |
16,042.28 |
13,240.97 |
16,538.61 |
14,159.96 |
Depreciation and amortisation expense |
10,817.66 |
9,490.74 |
11,351.74 |
10,254.86 |
Profit before Tax |
17,723.54 |
8,203.14 |
18,387.59 |
9,376.17 |
Less: Tax Expense |
5,298.92 |
1,321.73 |
5,914.84 |
2,442.07 |
Profit after Tax |
12,424.62 |
6,881.41 |
12,472.75 |
6,934.10 |
Add: Other Comprehensive Income |
(1,018.03) |
(126.56) |
(1,018.03) |
(126.56) |
Total Comprehensive income for the financial year |
11,406.59 |
6,754.85 |
11,454.72 |
6,807.54 |
Standalone performance
Revenue from operations for the financial year ended
31 March 2023 is '' 467,492 Lakhs ('' 324,953 Lakhs in FY 2021 -
22), an increase of about 44% over the previous year.
The Company has made a profit after tax of '' 12,425 Lakhs
for the financial year ended 31 March 2023 ('' 6,881 Lakhs in
FY 2021 -22), an increase of about 81 % over the previous year.
Consolidated performance
Revenue from operations for the financial year ended 31 March
2023 is '' 509,091 Lakhs ('' 380,902 Lakhs in FY 2021-22), an
increase of about 34% over the previous year. The Company
has made a profit after tax of '' 12,473 Lakhs ('' 6,934 Lakhs in
FY 2021 -22), an increase of about 80% over the previous year.
Total value of new contracts secured during the financial year
: ~'' 800,000 Lakhs
Major contracts secured during the FY 2022-23 having a value
of '' 20,000 Lakhs and above were as under:-
⢠Design and Execution of 156 Km of Access-Controlled Six
lane Expressway in Uttar Pradesh for Adani Road Transport
Limited.
⢠Construction of Wharf and Approach Works- Container
Terminal 4, JNPT for BMCT.
⢠Engineering and Construction of Container Terminal
including Marine and Allied Services at West Container
Terminal in the Port of Colombo, Sri Lanka.
⢠Piling & Civil Work for Coke Oven Project, Hazira at Dahej in
Gujarat for ArcelorMittal Nippon Steel India Limited.
⢠Construction of Thal Sena Bhawan at Delhi Cantt on EPC
Mode For Military Engineering Services, Delhi.
During the financial year, a number of contracts were completed
including-
⢠Construction of sewer tunnel and allied works for MCGM,
Mumbai, Maharashtra.
⢠Design Construction, Manufacturing, Supply, Installation,
Testing, Commissioning of Ballastless Trackwork in Main
Line for Line-7 Corridor for MMRDA, Mumbai, Maharashtra.
⢠Piling and Stone Column Works for JSW Steel Limited at
Dolvi, Maharashtra.
⢠Piling and Ground Improvement Works for Technip India
Limited at Paradip, Odisha.
⢠Piling Works for Tecnimont Private Limited at Paradip,
Odisha.
⢠Upgradation of Liquid Jetty for Gujarat Pipavav Port Limited
at Pipavav, Gujarat.
⢠Construction of Elevated Metro, Reach R1B, P1 and P2,
for Bangalore Metro Rail Corporation Limited, Bengaluru,
Karnataka.
In view of the performance of the Company during the
financial year under consideration, the Directors are pleased to
recommend a dividend of '' 0.75 per equity share on 171,787,584
equity shares of '' 1/- each fully paid up. The above dividend
amounting to '' 1,288 Lakhs, if approved at the ensuing Annual
General Meeting (AGM) of the Company, will represent 10.37%
of distributable profits of '' 12,425 Lakhs for the financial year.
Pursuant to the Finance Act, 2020, since dividend income is
taxable in the hands of the shareholders, the Company will
be required to make deduction of tax at source from dividend
payable to the members at prescribed rates under the Income
Tax Act for the financial year.
In terms of the provisions of Regulation 43A of the SEBI (Listing
Obligations and Disclosure Requirements) Regulations,
2015, as amended (âListing Regulationsâ), the Company has
formulated and adopted a Dividend Distribution Policy. It is
available on the Companyâs website and can be accessed
at https://www.itdcem.co.in/wp-content/uploads/2016/06/
Dividend-Distribution Policy.pdf
The Company has not transferred any amount to the reserves
during the financial year.
PERFORMANCE AND FINANCIAL POSITION OF
SUBSIDIARY AND JOINT VENTURES
As required under Regulation 34 of the Listing Regulations and
Section 129 of the Companies Act, 2013 (hereinafter referred
to as âthe Actâ), the Consolidated Financial Statements, which
have been prepared by the Company in accordance with the
applicable provisions of the Act and the applicable Accounting
Standards, form part of this Annual Report.
The performance and financial position of the Companyâs
subsidiary and joint ventures are summarised herein below:
Name |
Total income |
Profit/(Loss) for the |
% share |
Share of |
Subsidiary: |
||||
⢠ITD Cementation Projects India Limited |
0.11 |
(0.17) |
100% |
(0.17) |
Joint Ventures: |
||||
⢠ITD Cemindia JV |
23,257.89 |
(6,509.54) |
80% |
(6,502.83) |
⢠ITD-ITD Cem JV |
13,886.32 |
334.92 |
49% |
164.11 |
⢠ITD- ITD Cem JV (Consortium of ITD - ITD Cementation) |
Nil |
(21.56) |
40% |
(8.62) |
⢠ITD Cem-Maytas Consortium |
23,366.69 |
1,100.36 |
95% |
1,045.34 |
⢠CEC-ITD Cem-TPL JV |
30,515.85 |
5,451.55 |
60% |
3,270.93 |
⢠ITD Cem-BBJ JV |
18,578.25 |
Nil |
51% |
Nil |
Pursuant to the provisions of Section 129(3) of the Act, a
statement containing the salient features of the performance
and financial position of the said Subsidiary and Joint Ventures
as required under Rule 5 of the Companies (Accounts) Rules,
2014, as amended, is provided in Form AOC-1 marked as
Annexure 1 and forms part of the Consolidated Financial
Statements.
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 financial statements in respect of Subsidiary,
are also available on the website of the Company at https://
www.itdcem.co.in/investors/subsidiarv-companv/.
ENERGY CONSERVATION, TECHNOLOGY
ABSORPTION AND FOREIGN EXCHANGE
EARNINGS AND OUTGO
The Company lays significant emphasis on improvements
in methods and processes in its areas of construction and
operations. The primary focus of this effort is to continually
refine the frequently used systems at the Companyâs project
sites to derive optimisation, reduction in the breakdowns,
improve effectiveness and efficiency of use and hence provide
a competitive edge for any project. Information on Energy
Conservation, Technology Absorption, Foreign Exchange
Earnings and Outgo as required under Section 134(3)(m) of the
Act read with Rule 8 of the Companies (Accounts) Rules, 2014,
is attached herewith and marked as Annexure 2 to this Report.
AUDITORS AND AUDITORSâ REPORTS
Statutory Auditors
Pursuant to the provisions of Section 139 of the Act,
M/s. T R Chadha & Co. LLP, Chartered Accountants (ICAI Firm
Registration Number: 006711N/N500028) were appointed
as the Auditors of the Company at the 44th AGM held on
22 September 2022 for a period of five years from the
conclusion of the 44th AGM until the conclusion of the 49th
AGM to be held in the year 2027.
The Statutory Auditorâs report does not contain any
qualifications, reservations, adverse remarks or disclaimers.
Cost Auditors
In terms of Section 148 of the Act read with the Companies
(Cost Records and Audit) Rules, 2014, as amended, the
Company is required to prepare and maintain cost records
and also have the same audited by a Cost Accountant.
The Cost Audit Report and the Compliance Report of the
Company for the year ended 31 March 2022 was filed with
the Ministry of Corporate Affairs by Mr. Suresh D. Shenoy,
Cost Accountant, before the due date as prescribed under
the Companies (Cost Records and Audit) Rules, 2014, as
amended. Further, the cost accounts and records as required
to be maintained under Section 148 of the Act, are duly made
and maintained by the Company.
The Board, based on the recommendation of the Audit
Committee, has re-appointed Mr. Suresh D. Shenoy, Cost
Accountant (Membership No. 8318), as the Cost Auditor of
the Company for conducting cost audit for the year 2023-24.
The Company has received consent from Mr. Shenoy for his
re-appointment. He has also provided confirmation that he is
free from any disqualification specified under Section 141(3)
and proviso to Section 148(3) read with Section 141(4) of the
Act. He has further confirmed his independent status and an
armâs length relationship with the Company.
The consent of the members is being sought at the ensuing
AGM for ratification of the remuneration payable to the Cost
Auditor for the financial year 2023-24.
The Cost Auditorâs report does not contain any qualifications,
reservations, adverse remarks or disclaimers.
Pursuant to the provisions of Section 204 of the Act, read with
the Companies (Appointment and Remuneration of Managerial
Personnel) Rules, 2014, the Board had appointed M/s. Parikh
& Associates, Practicing Company Secretaries, Mumbai, as
the Secretarial Auditor for conducting Secretarial Audit of the
Company for the year 2022-23. The Secretarial Audit Report
issued by M/s. Parikh & Associates for the year 2022-23 is
attached herewith and marked as Annexure 3 to this Report.
The said Secretarial Auditorâs report does not contain any
qualifications, reservations, adverse remarks or disclaimers.
DIRECTORS AND KEY MANAGERIAL
PERSONNEL
a) Key Managerial Personnel (KMP)
I n accordance with the provisions of Section 203 of the
Act, the following persons are the KMPs of the Company
as at 31 March 2023:
Name of the KMP |
Designation |
Mr. Santi Jongkongka |
Executive Vice Chairman |
Mr. Jayanta Basu |
Managing Director |
Mr. Prasad Patwardhan |
Chief Financial Officer |
Mr. Rahul Neogi |
Company Secretary |
Appointment/Re-appointment:
⢠Mr. Santi Jongkongka (DIN: 08441312) was re¬
appointed as Whole-time Director designated as
Executive Vice Chairman of the Company for a
period of three years from 02 May 2022 to 01 May
2025 (both days inclusive), liable to retire by rotation,
duly approved by the Members through Postal Ballot
on 18 July 2022.
⢠Mr. Jayanta Basu (DIN 08291114) was re-appointed
as Managing Director of the Company for a period of
three years from 23 April 2022 to 22 April 2025 (both
days inclusive), not liable to retire by rotation, duly
approved by the Members through Postal Ballot on
18 July 2022.
⢠Ms. Jana Chatra (DIN 07149281) was appointed as an
Additional and Independent Director of the Company
for a term of 5 (five) consecutive years from 09 Novem ber
2022 to 08 November 2027 (both days inclusive),
not liable to retire by rotation. Her appointment as a
Director and an Independent Director for a term of 5
(five) consecutive years from 09 November 2022 to 08
November 2027 (both days inclusive) was approved
by the Members through postal Ballot on 31 January
2023.
⢠Subsequent to the financial year under review,
Mr. Sunil Shah Singh (DIN 00233918) was re-appointed
as an Independent Director of the Company for a
second term of 3 (three) consecutive years from 11
May 2023 to 10 May 2026 (both days inclusive) which
was approved by the Members through Postal Ballot
on 05 May 2023.
⢠Mr. Santi Jongkongka (DIN 08441312), retires by
rotation at the ensuing AGM and, being eligible, offers
himself for re-appointment.
During the financial year under review, Ms. Ramola
Mahajani (DIN 00613428) ceased to be a Director of
the Company with effect from 23 December 2022 upon
completion of her second term as an Independent
Director.
The Board placed on record its deep appreciation of the
valuable services rendered and notable contributions
made by Ms. Ramola Mahajani during her tenure as
Director of the Company.
The disclosures made in this regard are available at
https://www.itdcem.co.in/about-us/board-of-directors-
and-committees-of-directors/
The Company has received the necessary declarations
from each Independent Director of the Company under
Section 149(7) of the Act and Regulation 25 (8) of the
Listing Regulations confirming that he/she meets with the
criteria of independence as laid down in Section 149(6)
of the Act as well as Regulation 16(1) (b) of the Listing
Regulations.
There has been no change in the circumstances affecting
their status as independent directors of the Company.
During the financial year under review, the Non-Executive
Directors of the Company had no pecuniary relationship
or transactions with the Company , other than being in
receipt of sitting fees, commission and reimbursement of
expenses incurred by them for the purpose of attending
meetings of the Board/Committees of Board of the
Company.
Pursuant to the provisions of Section 134 (3)(p), Section
149 (8) and Schedule IV of the Act and applicable Listing
Regulations, annual evaluation of performance of the
Board, the individual Directors as well as Committees
of the Board had been carried out. The performance of
the individual Members of the Board was evaluated by
the Board after seeking inputs from all the Directors on
the basis of criteria such as the Board composition and
structure, effectiveness of Board processes, information
and functioning, etc. The performance of the Committees
was evaluated by the Board, based on the inputs from the
Committee members on the basis of criteria such as the
composition of committees, effectiveness of committee
meetings, etc.
At a separate Meeting of Independent Directors held on
08 February 2023, performance of Non-Independent
Directors, the Board as a whole and the Chairman of the
Company were evaluated, taking into account the views
of Executive Directors and Non-Executive Directors.
The Board and the Nomination and Remuneration
Committee reviewed the performance of individual
Directors based on meaningful contribution made by each
of them while participating in the Board and Committee
meetings, etc.
Based on the meeting of the Independent Directors and
the meeting of Nomination and Remuneration Committee,
the performance of the Board, its Committees and
Individual Directors was also deliberated upon at the
Board Meeting. Performance Evaluation of Independent
Directors was done by the entire Board, excluding the
Independent Director being evaluated.
Six meetings of the Board of Directors were held during
the year under report. For details pertaining to the
composition and number of meetings of the Board, please
refer to the Report on Corporate Governance which forms
part of this Report.
REMUNERATION OF DIRECTORS AND KMPS
Disclosures with respect to the remuneration of Directors,
KMPs and employees as required under Section 197 of the
Act read with Rule 5(1) of the Companies (Appointment and
Remuneration of Managerial Personnel) Rules, 2014 is given
below:
(a) The ratio of the remuneration of each Director to the
median remuneration of the employees of the Company
for the financial year:
1 Ms. Ramola Mahajani ceased to be a Director of the Company
with effect from 23 December 2022 upon completion of her
second term as an Independent Director.
2 Ms. Jana Chatra has been appointed as a Non-Executive
Independent Director of the Company with effect from 09
November 2022.
*Non-Executive Directors were also paid sitting fees as per details
given in the Report on Corporate Governance. Sitting fees do not
constitute an element of remuneration.
(b) The percentage increase in remuneration of each director,
chief executive officer, chief financial officer, company
secretary during the year:
Directors |
Ratio to median remuneration* |
Non-Executive Directors |
|
- Ms. Ramola Mahajani1 |
0.68:1 |
- Mr. Piyachai Karnasuta |
0.68:1 |
- Mr. Sunil Shah Singh |
0.68:1 |
- Mr. Pankaj I. C. Jain |
0.68:1 |
- Ms. Jana Chatra2 |
-- |
Executive Directors |
|
- Mr. Santi Jongkongka |
22.03:1 |
- Mr. Jayanta Basu |
18.94:1 |
Pursuant to Section 134(5) of the Act, the Board of Directors,
to the best of their knowledge and ability, confirm that:
⢠in the preparation of the annual accounts for the year ended
31 March 2023, the applicable accounting standards have
been followed and there have been no material departures;
Directors, Chief Executive Officer, Chief |
|
Ms. Ramola Mahajani1 |
- |
Mr. Piyachai Karnasuta |
- |
Mr. Sunil Shah Singh |
- |
Mr. Pankaj I.C. Jain |
- |
Ms. Jana Chatra2 |
- |
Mr. Santi Jongkongka, |
10% |
Mr. Jayanta Basu, |
10% |
Mr. Prasad Patwardhan, |
8% |
Mr. Rahul Neogi, Company Secretary |
6% |
⢠the Directors have selected such accounting policies and
applied them consistently and made judgements and
estimates that are reasonable and prudent, so as to give a
true and fair view of the state of affairs of the Company at
the end of the financial year and of the profit of the Company
for that year;
⢠the Directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance
with the provisions of the Act for safeguarding the assets of
the Company and for preventing and detecting fraud and
other irregularities;
⢠the Directors have prepared the annual accounts on a going
concern basis;
⢠the Directors have laid down internal financial controls to be
followed by the Company and that such internal financial
controls are adequate and operating effectively; and
⢠the Directors have devised proper systems to ensure
compliance with the provisions of all applicable laws and
that such systems are adequate and operating effectively.
As required under Section 177(8) of the Act, the details
pertaining to the composition, terms of reference and number
of meetings of the Audit Committee are included in the Report
on Corporate Governance, which forms part of this Report.
During the year under review, there was no instance wherein
the Board had not accepted any recommendation of the Audit
Committee.
VIGIL MECHANISM FOR DIRECTORS AND
EMPLOYEES
The Company has formulated and published Whistle¬
Blower Policy. This Policy has adequate safeguards against
victimisation of the Whistle-Blower and ensures protection of
the Whistle-Blowerâs identity. The Audit Committee oversees
the functioning of this Policy. Whistle-Blower is entitled to
direct access to the Chairperson of the Audit Committee
in appropriate or exceptional cases. In case of any Whistle
Blowing Disclosure, the Managing Director shall constitute a
Committee from amongst Senior Management Team members
as stipulated in the said Policy. This Policy is available on the
website of the Company at https://www.itdcem.co.in/wp-
content/uploads/2016/06/FINAL-Whistle Blower Policv.pdf
The Company has an internal control system commensurate
with the size, scale and complexity of its operations. In order
to enhance controls and governance standards, the Company
has adopted policies and procedures, which ensure that
robust internal financial controls exist in relation to operations,
financial reporting and compliance for orderly and efficient
conduct of its business, including adherence to Companyâs
Policies, the safeguarding of its assets, the prevention and
detection of frauds and errors, the accuracy and completeness
of the accounting records and the timely preparation of reliable
financial information. In addition, the Company strives to
remain vigilant on the evolving cyber security threat to the
Companyâs IT Systems. Further, Internal Auditor monitors and
evaluates the efficacy and adequacy of the internal control
system in the Company , its compliance with its operating
systems, accounting procedures and policies at all locations.
Periodical reports on the controls in place and suggested
corrective action, wherever required, are also presented to
the Audit Committee.
During the financial year under report, the internal controls
were tested and found effective, as a part of the Managementâs
control testing initiative. Accordingly, the Board, with the
concurrence of the Audit Committee and the Auditors, is of
the opinion that the Companyâs Internal Financial Controls
were adequate and operating effectively for the financial year
ended 31 March 2023.
PARTICULARS OF LOANS, GUARANTEES AND
INVESTMENTS
Particulars of loans, guarantees and investments as required
under the provisions of Section 186 of the Act have been
disclosed in the Financial Statements.
PARTICULARS OF CONTRACTS OR
ARRANGEMENTS WITH RELATED PARTIES
None of the transactions entered into with related parties
during the financial year 2022-23 fall under the purview of
Section 188(1) of the Act and Rules framed thereunder. All
contracts or arrangements entered into with related parties
during the year, were at armâs length basis and in the ordinary
course of the Companyâs business, and with prior approval of
the Audit Committee/Board, as applicable.
In terms of Section 134(3) and (4) read with Section 188(2) of
the Act, no material contract or arrangement with any related
party was entered into by your Company during the year
under report. Therefore, there is no requirement to report any
transaction in Form No. AOC-2 in terms of Section 134 of the
Act, read with Rule 8 of the Companies (Accounts) Rules, 2014.
The related party disclosures as specified in Para A of Schedule
V read with Regulation 34(3) of the Listing Regulations are
given in the Financial Statements.
A Policy, governing the related party transactions, which
is in line with the requirements of the Act and the Listing
Regulations, and duly approved by the Board of the Company,
has been adopted and the same has been uploaded on the
Companyâs website at https://www.itdcem.co.in/wp-content/
uploads/2016/06/RPT-Policy-15.09.2020.pdf
The Board of Directors of the Company has constituted Risk
Management Committee (RMC) to implement and monitor the
risk management plan for the Company. The details pertaining
to composition, terms of reference and the number of meetings
held for the RMC are included in the Report on Corporate
Governance, which forms part of this Report.
The Company has a well-documented and robust risk
management framework in place. Under this framework, risks
are identified across all business processes of the Company
on a continuous basis. These risks are further broken down into
various sub-categories of risks and monitored by respective
divisional/functional heads.
The Company has adopted a risk management policy and
has in place a mechanism to inform the Audit/Board Members
about risk assessment and minimisation procedures and its
periodical review. The Committee undertakes periodical review
of the said Policy to make it more effective and relevant to
the growing business needs of the Company and also to
ensure that appropriate processes and systems are in place
to evaluate risks associated with the business of the Company.
More details in respect to the risk management are given in
Management Discussion and Analysis (MD&A).
CORPORATE SOCIAL RESPONSIBILITY (CSR)
The Board of Directors has a CSR Committee in place
comprising Mr. Piyachai Karnasuta, Mr. Sunil Shah Singh, Mr.
Santi Jongkongka and Mr. Jayanta Basu as members of the
Committee as at 31 March 2023. Mr. Piyachai Karnasuta is the
Chairman of this Committee.
The Company has framed and adopted the CSR Policy and the
same has been uploaded on the Companyâs website at https://
www.itdcem.co.in/wp-content/uploads/2016/06/CSR Policy
Final.pdf Your Company strives to adopt a balanced approach
to overall community development through CSR activities
that would benefit the marginalised sections of society and
bring about a positive impact in their lives, including those
in and around the areas where it operates touching upon
various aspects of society such as education, health, disaster
management, environment and empowerment of economically
weaker sections of the society.
Based on average net profit earned by the Company in the
three immediately preceding financial years as computed in
accordance with the CSR Rules, the Company has spent an
amount of '' 80.62 Lakhs on CSR activities for the financial year
ended 31 March 2023.
The disclosures required to be given under Section 135 of
the Act read with Rule 9 of the Companies (Corporate Social
Responsibility Policy) Rules, 2014 are provided in Annexure 4
and form part of this Report.
COMPANYâS POLICY ON DIRECTORSâ
APPOINTMENT AND REMUNERATION AND
THEIR ATTRIBUTES
In accordance with the provisions of Section 178(3) of the Act
and Regulation 19 read with Part D of Schedule II of the Listing
Regulations, the Nomination and Remuneration Committee
(NRC) is responsible for determining qualification, positive
attributes and independence of a Director and recommend
to the Board, a Policy relating to the remuneration of the
Directors, Key Managerial Personnel and other employees.
The details pertaining to the composition, terms of reference
and number of the meetings held for the NRC are included
in the Report on Corporate Governance, which forms part of
this Report.
The Company has adopted the Nomination and Remuneration
Policy and the same has been uploaded on the Companyâs
website at https://www.itdcem.co.in/wp-content/
uploads/2016/06/revised-Nomination-Remuneration-Policy-
Final-11022022.pdf and relevant extracts of the said Policy
covering, inter alia, directorsâ appointments are given in
Annexure 5 and form part of this Report.
PARTICULARS OF EMPLOYEES AND RELATED
DISCLOSURES
Particulars of employees as required under Section 197 of the
Act read with Rule 5(2) and 5(3) of the Companies (Appointment
and Remuneration of Managerial Personnel) Rules, 2014 is
annexed to the Boardâs Report and marked as Annexure 6.
In accordance with the provisions of Section 136 of the Act,
the Annual Report and Accounts are being mailed to all the
Members of the Company excluding the aforesaid information
and the said particulars will be made available on request
and also made available for inspection at the Registered
Office of the Company. Any Member interested in obtaining
such particulars may write to the Company Secretary at the
Registered Office of the Company.
ANNUAL RETURN
Pursuant to Section 92(3) of the Act read with Rule 12 of the
Companies (Management and Administration) Rules, 2014,
Annual Return of the Company is uploaded on the website of
the Company and can be accessed at https://www.itdcem.
co.in/investors/financial/annual-returns/
DEPOSITS
The Company has not accepted any deposit from the public
falling under Section 73 of the Act and the Companies
(Acceptance of Deposits) Rules, 2014.
MANAGEMENT DISCUSSION AND ANALYSIS
Pursuant to Listing Regulations, 2015, the Management
Discussion and Analysis is attached hereto and forms part of
this Annual Report and marked as Annexure 7 to this Report.
CORPORATE GOVERNANCE
Pursuant to Listing Regulation, 2015, the Report on Corporate
Governance alongwith a certificate of compliance from the
Auditors is attached hereto and marked as Annexure 8 to this
Report.
BUSINESS RESPONSIBILITY AND
SUSTAINABILITY REPORT
As required under Regulation 34(2)(f) of the Listing
Regulations, the Business Responsibility and Sustainability
Report, describing the initiatives taken by the Company from
an environmental, social and governance perspective in the
specified format, forms part of this Annual Report.
MATERIAL CHANGES AND COMMITMENTS
AFFECTING THE FINANCIAL POSITION OF THE
COMPANY
There are no material changes and commitments affecting
the financial position of the Company , which have occurred
between the end of the financial year under review and the
date of this Report.
SIGNIFICANT AND MATERIAL ORDERS PASSED
BY THE REGULATORS OR COURTS OR
TRIBUNALS
During the financial year under review, there were no significant
and material orders passed by any regulator or court or
tribunal, impacting the going concern status of the Company
and its future operations.
DISCLOSURE UNDER SEXUAL HARRASSMENT
OF WOMEN AT WORKPLACE (PREVENTION,
PROHIBITION AND REDRESSAL) ACT, 2013
During the financial year under review, there were no cases filed
pursuant to the Sexual Harassment of Women at Workplace
(Prevention, Prohibition and Redressal) Act, 2013 and the
Rules framed thereunder.
The Company has complied with the provisions relating to
the constitution of Internal Complaints Committee under the
Sexual Harassment of Women at Workplace (Prevention,
Prohibition and Redressal) Act, 2013.
REPORTING OF FRAUD BY AUDITORS
During the financial year under review, the Statutory Auditors
of the Company have not reported any instances of fraud
committed against the Company under the second proviso
of Section 143(12) of the Act.
SECRETARIAL STANDARDS
During the financial year under review, the Company has
complied with the applicable mandatory Secretarial Standards
issued by the Institute of Company Secretaries of India.
CHANGE IN NATURE OF BUSINESS
There has been no change in the nature of business of the
Company during the financial year under review.
APPLICATION/PROCEEDINGS UNDER
INSOLVENCY AND BANKRUPTCY CODE
There was no application(s) made or any proceedings pending
against the Company under the Insolvency and Bankruptcy
Code, 2016 (31 of 2016) (the Code) during the financial year
under review.
ONE TIME SETTLEMENT WITH BANKS/
FINANCIAL INSTITUTIONS AND VALUATION
THEREOF
None during the year.
ISO 9001:2015, ISO 14001:2015 & ISO 45001:2018
The Company has an established Integrated Management
System comprising Quality Management System (QMS)
conforming to ISO 9001:2015, Environmental Management
System (EMS) conforming to ISO 14001:2015 and Occupational
Health and Safety Management System conforming to ISO
45001:2018 at all offices, project sites and depots. During the
financial year, the Companyâs Management System has been
audited and compliance to the requirements of the International
Standards has been confirmed by TUV-Nord.
The Company is amongst the few construction companies
which have established an Integrated Management System
(IMS). The system is effectively implemented and maintained
to ensure customer satisfaction, continual improvement and
compliance to the applicable legal and other non-regulatory
requirements as per the Standards.
OUTLOOK
ITD Cementation India Limited has seen a remarkable year of
delivering growth with excellence and has reported a strong
financial and operational performance for the fiscal year 2022¬
23. During the year under review, the Company recorded
the highest ever consolidated revenue of '' 5,091 crore,
which is a growth of 34% y-o-y thereby indicating growth
in the Companyâs operations. The Company also reported
record Profit After Tax of '' 125 crore, a growth of 80% y-o-y
showcasing better execution capabilities and improvement
in profitability ratios with higher Net profit margin, improved
Return on Equity and Earning Per share for the shareholders.
Your Companyâs balance sheet reflects a strong financial
position and is conservatively financed with a Net Debt to
Equity Ratio of 0.22x, thereby indicating the Companyâs ability
to meet its financial obligations and invest in the upcoming
opportunities in the sector.
The Company recorded the largest ever order inflow of
approximately '' 8,000 crore with order book of '' 20,044 crore
as on 31 March 2023, which is a testimony of the Companyâs
capabilities, quality and commitment to nation building and
contribution to the economic growth of the country. The
Company is now gearing up for international expansion,
building capabilities while leveraging its Parent Companyâs
expertise to expand its footprint overseas.
The Government enhanced push towards infrastructure
development, as reflected in the Union Budget 2023-24,
will enable the Company to participate in the upcoming
opportunities in the sector. The Company will continue to
focus on efficient capital allocation, quality of order book,
diversified clientele, geographies, investment in talent pool,
advanced technologies and unlock efficiencies to deliver
robust performance and generate long-term business value.
The Companyâs expertise and experience in executing projects
with excellence have helped the Company earn a reputation
as one of the preferred contractors in the infrastructure sector.
PARENT COMPANY
Italian-Thai Development Public Company Limited (ITD),
founded in 1958, is a leading civil engineering & infrastructure
construction and development company in Thailand. With a
well-diversified presence across the construction space that
includes MRT, airports, buildings, hydro-electric dams, power
plants, tunnels, pipelines, jetties, deep-sea ports & marine
works, highways, expressways & bridges, industrial works,
mining and telecommunications, ITD is listed in Nikkei Asia
300; a list of Asiaâs biggest and fastest growing companies
among 11 economies in the continent.
ITD has been a leader in infrastructure construction in Thailand
for more than 63 years and has since then expanded its
operations across several other countries in South and South
East Asia.
ITD won the prestigious International Federation of Asian and
Western Pacific Contractorâs Association (IFAWPCA) Gold
Medal Award for civil engineering in 1982. It was awarded to
ITD for the construction of the largest and most challenging
civil engineering project ever attempted in Thailand - the Khao
Laem Dam.
The Royal Seal of The Garuda was awarded to ITD by His
Majesty the King on 23 December 1985. The Royal Seal of
The Garuda is the highest and most honourable achievement
under the Royal Patronage of the King of Thailand.
One of the landmark projects, which ITD has been proudly
associated with, is the construction of the Suvarnabhumi
International Airport, approximately 25 km east of Bangkok,
which ITD successfully completed in 2006. This was the
eleventh busiest airport in Asia for the year 2018.
ITD has an experienced in-house training division responsible
for maintaining the high level of construction skills and safety
- a prime company objective.
In 2022, ITD posted revenues of around 67 Billion Thai Baht
(about '' 1,660,000 Lakhs).
The shares of the Company are mandatorily traded in electronic
form. The Company has entered into Agreements with both
the depositories i.e. National Securities Depository Limited
(NSDL) and Central Depository Services (India) Limited (CDSL).
The financial year of the Company is 01 April to 31 March.
Relations with staff and labour remained peaceful and cordial
during the year under review.
The Directors thank ITD for the continued support extended
by it and the guidance provided to your Company.
The Directors also thank all the employees of the Company for
their hard work, dedication and valuable contribution and the
shareholders, customers, government, regulatory authorities
and bankers for their continued support which resulted in the
Company achieving consistent growth over the years.
Piyachai Karnasuta
Chairman
Dec 31, 2016
The Directors present herewith their Report and the Audited Financial Statements for the year ended 31st December, 2016.
FINANCIAL RESULTS (Rs. in Lakh)
Total Income |
Year 2016 |
Year 2015 |
289,132.07 |
276,037.00 |
|
Gross Profit / (Loss) before depreciation and provision for doubtful debts |
14,725.26 |
7,374.64 |
Less: Depreciation on fixed assets |
3,230.79 |
2,485.29 |
Profit before provision for doubtful debts |
11,494.47 |
4,889.35 |
Less: Provision for doubtful debts |
2,050.07 |
1,367.65 |
Profit before taxation and exceptional item |
9,444.40 |
3,521.70 |
Add/ (Less): Exceptional item (including share of loss in joint venture H907.09 Lakh) |
- |
(12,397.19) |
Profit/ (Loss) before taxation after exceptional item |
9,444.40 |
(8,875.49) |
Less: Provision for taxation/(deferred tax credit) |
(4,633.45) |
2,944.76 |
Profit/ (Loss) after taxation |
4,810.95 |
(5,930.73) |
Add : Surplus of previous year brought forward |
3,037.31 |
8,997.65 |
Amount available for appropriation |
7,848.26 |
3,066.92 |
Directors'' recommendation for appropriation: |
||
Proposed dividend |
465.47 |
- |
Dividend distribution tax |
94.76 |
- |
Adjustment on account of additional depreciation |
- |
29.61 |
Balance carried to Balance Sheet |
7,288.03 |
3,037.31 |
DIVIDEND
The Directors are pleased to recommend dividend of Re 0.30 per share (2015-Nil) on 155,157,900 equity shares of Re 1/- each fully paid up. The above dividend, together with tax thereon, if approved, will represent 11.64% of distributable profits of Rs.4,810.95 Lakh for the year.
TRANSFER TO RESERVE
The Company has not transferred any amount to the reserves during the current financial year.
REVIEW OF OPERATIONS
Revenue from standalone operations for the year at Rs.292,526.78 Lakh has increased by Rs.18,918.08 Lakh, from Rs.273,608.70 Lakh in the year 2015, an increase of about 6.9% over the previous year. Consolidated revenue from operations for the year at Rs.308,856.02 Lakh has increased only marginally by HI,985.99 Lakh, from Rs.306,870.03 Lakh in the year 2015, an increase of about 0.70% over the previous year.
The Company made a profit before tax of Rs. 9,444.40 Lakh compared to a loss before tax of Rs.8,875.49 Lakh (after exceptional item of Rs.12,397.19 Lakh) for the year 2015.
The Consolidated profit before tax was Rs.7,360.80 Lakh compared to loss before tax of Rs.8,458.58 Lakh (after exceptional item of Rs.12,397.19 Lakh) for the year 2015.
After a review of the position of outstanding debts, your Directors have decided to write off bad debts during the year amounting to Rs.342.89 Lakh (2015- Nil).
Total value of new contracts secured during the year aggregated Rs.422,305 Lakh (2015 â Rs.296,875 Lakh). Major contracts having a value of Rs.7,500 Lakh and above are as under-
-Civil & structural works for a refinery at Paradip, Odisha.
-Architectural finishings and service works for Metro Stations at Kolkata, West Bengal.
-Development of multipurpose terminal by replacement of existing EQ 2 to EQ 5 Berths to cater to 14.00 meter draft vessels in inner harbour at Visakhapatnam Port.
-Civil works for fifth oil berth at Jawahar Dweep in Mumbai harbour.
-Complete civil construction works of railway line and bridges for a power plant at Nashik, Maharashtra.
-Construction of ten elevated metro stations for Nagpur Metro Rail.
-Civil works for construction of LNG Berth at Jaigad Port, Maharashtra.
-Construction of multi modal IWT terminal at Haldia, West Bengal.
-Construction of Container Berth 3 at Hazira, Gujarat.
During the year, your Company''s Joint Venture, ITD-ITD Cem Joint Venture, has received a contract for laying of trunk sewer along James Long Sarani, Kolkata by micro tunneling method for KEIIP (H9,871 Lakh) and the CEC-ITD Cem- Tata Projects Joint Venture has received a contract for design and construction of underground section including 3 underground stations at Siddhi Vinayak, Dadar and Shitaladevi Temple and associated bored tunnel for Mumbai Metro Rail Corporation (H283,010 Lakh).
During the year under report, a number of contracts were completed including-
-Comprehensive development of elevated corridor between Mangolpuri to Madhuban chowk for PWD Delhi.
-Comprehensive development of elevated corridor between Madhuban chowk to Mukarba chowk for PWD, Delhi.
-Design and construction of reclamation and container yard with associated facilities at Jawaharlal Nehru Port, Navi Mumbai.
-Container terminal 4 at Mundra, Gujarat.
-Construction of New Haj Tower Complex at Kolkata for Hooghly River Bridge Commissioners.
-Construction of six lane link road on Delhi Howrah Rail Track for Ghaziabad Development Authority, Uttar Pradesh.
-Various piling and civil works in Maharashtra, Odisha, Sikkim, Tamil Nadu, etc.
PERFORMANCE AND FINANCIAL POSITION OF SUBSIDIARY AND JOINT VENTURES
As required under Regulation 36 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (hereinafter referred to as ''Listing Regulations, 2015'') and Section 129 of the Companies Act, 2013 (hereinafter referred to as the ''Act''), the Consolidated Financial Statements, which have been prepared by the Company in accordance with the applicable provisions of the Act and the applicable Accounting Standards, form part of this Annual Report.
A statement containing the salient features of the performance and financial position of the said Subsidiary and Joint Ventures as required under Rule 5 of the Companies (Accounts) Rules, 2014 is provided in Form AOC-1 - marked as Annexure 1 and forms part of the Consolidated Financial Statements.
The performance and financial position of the Company''s subsidiary and joint ventures are summarized herein below: (Rs. in Lakh)
Name |
Total income |
Profit/ (Loss) for the year |
% share |
Share of Profit/ (Loss) |
Subsidiary: |
||||
ITD Cementation Projects India Limited |
0.30 |
(0.18) |
100% |
(0.18) |
Joint Ventures: |
||||
- ITD Cemindia JV |
1,923.07 |
196.19 |
80% |
156.95 |
- ITD-ITD Cem JV |
29,957.63 |
(11,253.26) |
49% |
(5,514.10) |
- ITD-ITD Cem JV (Consortium of ITD - ITD Cementation) |
25.08 |
(461.72) |
40% |
(184.69) |
- ITD Cem-Maytas Consortium |
176.06 |
(36.14) |
95% |
(34.33) |
- CEC-ITD Cem-TPL JV |
1,708.50 |
NIL |
40% |
NIL |
The annual accounts of the Subsidiary Company will be made available to any Member of the Company seeking such information at any point of time and are also available for inspection by any Member of the Company at the Registered Office of the Company on any working day during business hours up to the date of the Annual General Meeting.
ENERGY CONSERVATION, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO
The Company lays significant emphasis on improvements in methods and processes in its areas of construction and operations. The Company has an in-house Research & Development Division. The primary focus of research is to continually refine the frequently used systems at our project sites to derive optimization, reduction in the breakdowns, improve effectiveness and efficiency of use and hence provide a competitive edge for any project. Energy Conservation, Technology Absorption, Foreign Exchange Earnings and Outgo as required under Section 134(3)(m) of the Act read with Rule 8 of the Companies (Accounts) Rules, 2014 is annexed herewith and marked as Annexure 2.
STATUTORY AUDITORS
The present Statutory Auditors of the Company, Messrs Walker Chandiok & Co LLP, Chartered Accountants, Mumbai, having Firm Registration No. 001076N/N500013 were appointed as the Auditors of the Company at the 34th Annual General Meeting (AGM) held on 4th May, 2012. Pursuant to the provisions of Section 139 of the Act, the Auditors were re-appointed for a period of two years from the conclusion of the 37th AGM held on 13th May, 2015 until the conclusion of the 39th AGM to be held on 11th May, 2017 and this appointment was duly ratified by the shareholders of the Company at the AGM held on 12th May, 2016. Accordingly, their term of five years would be expiring on 11th May, 2017.
As per the provisions of Section 139 of the Act, a company can appoint the same Audit Firm for a second term of 5 years subject to the approval of the shareholders of the company.
Based on the recommendations of the Audit Committee, the Board hereby recommends the appointment of Messrs Walker Chandiok & Co LLP, Chartered Accountants, Mumbai as the Company''s Statutory Auditors for a further period of five years commencing from 11th May, 2017 for the approval of the shareholders.
As required under the provisions of Section 139 (1) of the Act, the Company has received written consent from Messrs Walker Chandiok & Co LLP, Chartered Accountants, Mumbai informing that their appointment, if made, would be in accordance with the provisions of the Act read with Rule 4(1) of the Companies (Audit and Auditors) Rules, 2014 and that they satisfy the criteria provided in Section 141 of the Act. As required under the Listing Regulations, 2015, the Statutory Auditors have also confirmed that they hold a valid certificate issued by the Peer Review Board of the Institute of Chartered Accountants of India.
DIRECTORS AND KEY MANAGERIAL PERSONNEL
a) Key Managerial Personnel (KMP)
In accordance with the provisions of Section 203 of the Act, the following persons have been designated as KMP of the Company as at 31st December, 2016:
Name of the KMP |
Designation |
Mr. Adun Saraban |
Managing Director |
Mr. S. Ramnath |
Chief Financial Officer |
Mr. R.C. Daga |
Company Secretary |
None of the KMP has resigned during the year.
b) Directors
Mr. Premchai Karnasuta will retire by rotation and, being eligible, offers himself for re-appointment.
c) Declarations by Independent Directors
The Company has received necessary declarations from each Independent Director of the Company under Section 149(7) of the Act confirming that they meet with the criteria of independence as laid down in Section 149(6) of the Act.
d) Performance Evaluation
Pursuant to the provisions of Section 134 (3) (p), Section149 (8) and Schedule IV of the Act and Listing Regulations, 2015, Annual Performance Evaluation of the Board, the Directors as well as Committees of the Board has been carried out.
The Performance Evaluation of the Independent Directors was carried out by the entire Board and the Performance Evaluation of the Chairman and Non-Independent Directors was carried out by the Independent Directors.
During the year the Independent Directors of the Company met on 9th November, 2016.
e) Number of Meetings of Board of Directors
7 meetings of Board of Directors were held during the year under report. For details of the Meetings of the Board, please refer to the Report on Corporate Governance, which forms part of this Report.
REMUNERATION OF DIRECTORS AND KMPs
Disclosures with respect to the remuneration of Directors, KMPs and employees as required under Section 197 of the Act read with Rule 5(1) of the Companies (Appointment and Remuneration of
Managerial Personnel) Rules, 2014 are given below:
(a) The ratio of the remuneration of each Director to the median remuneration of the employees of the Company for the financial year:
Directors |
Ratio to median remuneration |
Non - Executive Director |
|
Mr. Premchai Karnasuta |
- |
Mr. Pathai Chakornbundit |
- |
Mr. D.E. Udwadia |
0.68 |
Mr. Per Ebbe Hofvander |
- |
Mr. D.P. Roy |
0.68 |
Mrs. Ramola Mahajani |
0.68 |
Mr. Piyachai Karnasuta |
- |
Executive Director |
|
Mr. Adun Saraban |
18.13 |
Non - Executive Directors were paid sitting fees as given in the Report on Corporate Governance and no other remuneration was paid to them. Sitting fees do not constitute an element of remuneration.
(b) The percentage increase in remuneration of each director, chief executive officer, chief financial officer, company secretary in the financial year:
Directors, Chief Executive Officer, Chief Financial Officer and Company Secretary |
|
Mr. Premchai Karnasuta |
- |
Mr. Pathai Chakornbundit |
- |
Mr. D.E. Udwadia |
- |
Mr. Per Ebbe Hofvander |
- |
Mr. D.P. Roy |
- |
Mrs. Ramola Mahajani |
- |
Mr. Piyachai Karnasuta |
- |
Mr. Adun Saraban, Managing Director |
15% |
Mr. S. Ramnath, Chief Financial Officer |
20% |
Mr. R.C. Daga, Company Secretary |
17% |
(c) The percentage increase in the median remuneration of employees in the financial year: 12.08%
(d) The number of permanent employees on the rolls of the Company: 1882.
(e) Average percentile increase already made in the salaries of employees other than the managerial personnel in the last financial year and its comparison with the percentile increase in the managerial remuneration and justification thereof and point out if there are any exceptional circumstances for increase in the managerial remuneration:
Sr. No. |
Other Employees |
Managerial |
Remarks |
1 |
12.69% |
18.45% |
Nil |
(f) Affirmation that the remuneration is as per the remuneration policy of the Company:
The Company affirms that the remuneration is as per the remuneration policy of the Company.
DIRECTORS'' RESPONSIBILITY STATEMENT
Pursuant to Section 134(5) of the Act, the Board of Directors, to the best of their knowledge and ability, confirms that: in the preparation of the annual accounts for the financial year ended 31st December, 2016, the applicable accounting standards have been followed and there have been no material departures;
they have selected such accounting policies and applied them consistently, and made judgments and estimates that are reasonable and prudent, so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the profit of the Company for that period;
- they have taken proper and sufficient care for the maintenance of adequate accounting records, in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;
- they have prepared the annual accounts on an on- going concern basis; they have laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and operating effectively; and they have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems are adequate and operating effectively.
AUDIT COMMITTEE
The details pertaining to the composition of the Audit Committee are included in the Report on Corporate Governance, which forms part of this Report.
During the year under review, there was no instance wherein the Board had not accepted any recommendation of the Audit Committee.
VIGIL MECHANISM FOR DIRECTORS AND EMPLOYEES
The Company has formulated and published a Whistle Blowing and Prevention of Sexual Harassment Policy and Procedures to deal with instances of harassment or victimization, if any. This Policy has adequate safeguards against victimization of the whistle blower and ensures protection of the whistle blower''s identity. Whistle Blower or Complainant, as the case may be under the said Policy, shall be entitled to direct access to the Chairperson of the Audit Committee in appropriate or exceptional cases. In case of any Whistle Blowing Disclosure, the Managing Director shall constitute a Committee from Senior Management Team members as stipulated in the said Policy. This Policy is available on the website of the Company.
INTERNAL FINANCIAL CONTROLS
The Company has an internal control system commensurate with the size, scale and complexity of its operations. In order to enhance controls and governance standards, the Company has adopted Standard Operating Procedures which ensure that robust internal financial controls exist in relation to operations, financial reporting and compliance. In addition, the Internal Audit function monitors and evaluates the efficacy and adequacy of the internal control system in the Company, its compliance with operating systems, accounting procedures and policies at all locations. Periodical reports on the same are also presented to the Audit Committee.
PARTICULARS OF LOANS, GUARANTEES AND INVESTMENTS
Particulars of loans, guarantees and investments as required under the provisions of Section 186 of the Act have been given in the Financial Statements.
PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES
All contracts or arrangements with related parties, entered during the financial year were at arm''s length basis and in the ordinary course of the Company''s business. All such contracts or arrangements were entered into only with prior approval of the Audit Committee. No material contract or arrangement with related parties was entered into during the year under report. Therefore, there is no requirement to report any transaction in Form No. AOC-2 in terms of Section 134 of the Act read with Rule 8 of the Companies (Accounts) Rules, 2014.
The related party disclosures as specified in Para A of Schedule V read with Regulation 34(3) and 53(f) of the Listing Regulations, 2015 are given in the Financial Statements.
A Policy governing the related party transactions has been adopted and the same has been uploaded on the Company''s website.
RISK MANAGEMENT
The Company has constituted a Risk Management Committee comprising Mr. Per Hofvander, Mr. Adun Saraban and Mr. B. K. Saha, Senior Executive Vice President of the Company. Mr. Per Hofvander is the Chairman of this Committee.
The Company has adopted a risk management policy and has in place a mechanism to inform the Audit / Board Members about risk assessment and minimization procedures and its periodical review.
More details in respect to the risk management are given in Management Discussion and Analysis (MD&A).
CORPORATE SOCIAL RESPONSIBILITY (CSR)
The Board of Directors has constituted a CSR Committee comprising Mr. Per Hofvander, Mr. Pathai Chakornbundit and Mr. Adun Saraban. Mr. Per Hofvander is the Chairman of this Committee.
The Company has adopted the CSR Policy and the same has been uploaded on the Company''s website.
On account of the losses incurred by the Company, there was no average net profit in the three immediately preceding financial years as computed in accordance with the CSR Rules and the Company was therefore not in a position to spend any amount on CSR activities for the year under report.
The disclosures required to be given under Section 135 of the Act read with Rule 9 of the Companies (Corporate Social Responsibility Policy) Rules, 2014 are in Annexure 3 and forms part of this Report.
NOMINATION AND REMUNERATION COMMITTEE (NRC)
The Board of Directors has constituted an NRC comprising Mr. D.E. Udwadia, Mr. Premchai Karnasuta, Mr. Pathai Chakornbundit and Mr. Per Hofvander. Mr. D.E. Udwadia is the Chairman of this Committee.
The details pertaining to the composition of the NRC are included in the Report on Corporate Governance, which form part of this Report.
The Nomination and Remuneration Policy on Directors'' appointment and remuneration is given in Annexure 4 and forms part of this Report.
The Company has adopted the Nomination and Remuneration Policy and the same has been uploaded on the Company''s website.
PARTICULARS OF EMPLOYEES AND RELATED DISCLOSURES
Particulars of employees as required under Section 197 of the Act read with Rule 5(2) and 5(3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 is annexed to the Board''s Report and marked as Annexure 5. In accordance with the provisions of Section 136 of the Act, the Annual Report and Accounts are being sent to all the Members of the Company excluding the aforesaid information and the said particulars will be made available on request and also made available for inspection at the Registered Office of the Company. Any Member interested in obtaining such particulars may write to the Company Secretary at the Registered Office of the Company.
SECRETARIAL AUDIT REPORT
Pursuant to the provisions of Section 204 of the Act, read with the Rules therein, the Secretarial Audit Report issued by M/s Parikh & Associates, Practicing Company Secretaries is attached and marked as Annexure 6 to this Report.
EXTRACT OF THE ANNUAL RETURN
Pursuant to Section 92(3) and Section 134 (3)(a) of the Act read with Rule 12(1) of the Companies (Management and Administration) Rules, 2014, an extract of the Annual Return in Form MGT-9 is attached and marked as Annexure 7 to this Report.
DEPOSITS
The Company has not accepted any deposit from the public falling under Section 73 of the Act and the Companies (Acceptance of Deposits) Rules, 2014.
MANAGEMENT DISCUSSION AND ANALYSIS
Pursuant to Listing Regulations, 2015, the Management Discussion and Analysis is attached hereto and forms part of this Annual Report and marked as Annexure 8 to this Report.
CORPORATE GOVERNANCE
Pursuant to Listing Regulation, 2015, the Report on Corporate Governance along with a certificate of compliance from the Auditors are attached hereto and marked as Annexure 9 to this Report.
BUSINESS RESPONSIBILITY REPORT
As required under Regulation 34 (2) (f) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) (Amendment) Regulations, 2015, the Business Responsibility Report forms part of this Annual Report.
MATERIAL CHANGES AND COMMITMENTS AFFECTING THE FINANCIAL POSITION OF THE COMPANY
There are no material changes and commitments affecting the financial position of the Company, which have occurred between the end of the financial year under review and the date of this Report.
SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS OR TRIBUNALS
During the year under review, there were no significant and material orders passed by any regulator or court or tribunal, impacting the going concern status of the Company and its future operations.
DISCLOSURES UNDER SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION & REDRESSAL) ACT, 2013
During the year under review, there were no cases filed pursuant to the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 and the Rules framed there under.
REPORTING OF FRAUD
The Auditors of the Company have not reported any fraud as specified under the second proviso of Section 143(12) of the Act.
ISO 9001:2008, ISO 14001:2004 & OHSAS 18001:2007
The Company has an established Integrated Management System comprising Quality Management System (QMS) conforming to ISO 9001:2008, Environmental Management System (EMS) conforming to ISO 14001: 2004 and Occupational Health and Safety Management System conforming to OHSAS 18001:2007 at all offices, project sites and depots. During the year, the Company''s Management System has been audited and compliance to the requirements of the International Standards has been confirmed by DNV GL-Business Assurance (DNV GL- BA).
The Company is amongst the few construction companies who have established an Integrated Management System and is adequately maintaining the system to ensure customer satisfaction, compliance to legal and other non-regulatory requirements as per the Standards along with continual improvements to the system.
OUTLOOK
During the last couple of years, India has had the privilege of being among the most favoured investment destinations of the world. Benign crude oil and commodity prices combined with the increase in tax revenues of the government have helped improve public finances and reduce some of its external vulnerabilities. Good monsoon in 2016 and its benevolent effect on food prices ensured that inflation remained in control with WPI and CPI at 3.39 % and 3.41% respectively as of December 2016.
However, the demonetization action by the government is likely to lower GDP growth in 2016-17 to about 6.8%, according to a survey carried out by FICCI in December ''16/ January ''17. This is lower by a percent from the IMF forecast of 7.6% GDP growth for India in 2016-17.
The anticipated revival in private capital investment has not come about and, going forward, the growth prospects for the construction sector in 2017 will largely be led by government expenditure on infrastructure. In the Budget for 2017-18, the government has increased the outlay on infrastructure by about 25% over its previous year and has chosen to adopt an integrated approach to improving the transportation network by combining roads, railways, waterways and civil aviation.
The Economic Survey for 2016-17 estimates the Indian economy to grow between 6.75% and 7.5% in 2017-18. But rising crude and commodity prices in global markets, increased protectionist policies by many governments affecting exports and the weakening of the rupee against the US dollar are factors that are likely to exert pressures on the fiscal front. This could in turn impact the government''s investment expenditure in infrastructure.
The demonetization action led to a spurt in bank deposits and, with low demand for credit, has seen a reduction in lending rates. However, this alone will not be sufficient for improving credit metrics. Any significant improvement in liquidity profile and credit metrics of construction companies will take time and will be contingent on improvement in working capital cycle (by way of faster execution and release of stuck receivables/retention money), improvement in pace of execution and ability to raise long term funds.
The Company has maintained its focus on project selection for bidding after due evaluation of risks, profitability and project cash flow and has been able to build a strong and diverse order book worth H658,346 Lakh as on 31st December, 2016. The Company is also in the L1 status on a significant contract amounting to over H170,000 Lakh, which it is hopeful of converting into an award. The Company is confident of improving its performance in the coming year, although executional challenges will continue to exert pressure on profit margins for the next couple of quarters.
PARENT COMPANY
Italian-Thai Development Public Company Limited (ITD), founded in 1958, is a leading civil engineering & infrastructure construction and development company. With a well-diversified presence across the construction space that includes MRT, airports, buildings, dams & tunnels, highways, expressways & bridges, industrial works, mining and telecommunications, ITD is listed in Nikkei Asia300; a list of Asia''s biggest and fastest growing companies among 11 economies in the continent.
ITD has been a leader in infrastructure construction in Thailand for more than 58 years and has since then expanded its operations across several other countries in south east and south Asia.
ITD is the only Thai construction company to win the prestigious International Federation of Asian and Western Pacific Contractor''s Association (IFAWPCA) Gold Medal Award for civil engineering in 1982. It was awarded to ITD for the construction of the then largest and most challenging civil engineering project ever attempted in Thailand - the Khao Laem Dam.
The Royal Seal of The Garuda was awarded to the company by His Majesty the King on 23rd December, 1985. The Royal Seal of the Garuda is the highest and most honourable achievement under the Royal Patronage of the King of Thailand.
One of the landmark projects which ITD has been proudly associated with is the construction of the Suvarnabhumi International Airport, approximately 25 km east of Bangkok, which ITD successfully completed in 2006. This is the twentieth busiest airport in the world and the ninth busiest airport in Asia for the year 2015.
ITD has an experienced in-house training division responsible for maintaining the high level of construction skills and safety - a prime company objective.
In 2015, ITD posted revenues of over 51 billion Thai Baht (about Rs.9,400 crore) and had 27,317 employees on its rolls. Of its revenues, about 40% are derived from overseas operations.
DEPOSITORY SYSTEM
It is mandatory that the shares of the Company are traded in electronic form. The Company has entered into Agreements with both the depositories i.e. National Securities Depository Limited (NSDL) and Central Depository Services (India) Limited (CDSL).
FINANCIAL YEAR
The Company Law Board, New Delhi has granted permission to the Company to follow the financial year 1st January to 31st December.
INDUSTRIAL RELATIONS
Relations with staff and labour remained peaceful and cordial during the year under review.
ACKNOWLEDGEMENT
The Directors thank ITD for the continued support extended by it and the guidance provided to your Company.
The Directors thank all employees for their contribution and the shareholders, customers and bankers for their continued support.
For and on behalf of the Board
Premchai Karnasuta
21st February, 2017 Chairman
Dec 31, 2014
Dear Members,
The Directors present herewith their Report and Statement of Accounts
for the year ended 31st December 2014.
FINANCIAL RESULTS (Rupees in Lakh)
Year 2014 Year 2013
Total Income 137,671.70 127,893.74
Gross Profit / (Loss) before
depreciation and bad debts (3,141.83) 4,944.33
Less: Depreciation on fixed assets 2,942.69 3,348.91
Profit / (Loss) before provision for
doubtful debts (6,084.52) 1,595.42
Less: Provision for doubtful debts 673.69 660.81
Profit / (Loss) before Taxation and
exceptional item (6,758.21) 934.61
Add: Exceptional Item (Write-back of
depreciation) 9,553.25 Nil
Profit before Taxation after
Exceptional Item 2,795.04 934.61
Less: Provision for Tax 853.66 3.67
Profit after Taxation 1,941.38 930.94
Add : Surplus of previous year brought
forward 7,056.27 6,285.11
Amount available for appropriation 8,997.65 7,216.05
Directors'' recommendation for
appropriation:
Proposed Dividend - 115.16
Dividend Distribution Tax(Incl.
earlier year) - 21.35
Transfer to General Reserve - 23.27
Balance carried to Balance Sheet 8,997.65 7,056.27
8,997.65 7,216.05
DIVIDEND
The Board of Directors do not recommend any dividend for the year 31st
December 2014 in view of the operating losses incurred by the Company
during the year
REVIEW OF OPERATIONS
Revenue for the year at Rs. 135,241 Lakh has increased by Rs. 12,765
Lakh from Rs. 122,476 Lakh in the year 2013, an increase of about 10%
over previous year Consolidated revenue for the year was at Rs. 171,242
Lakh as compared to Rs. 157,837 Lakh for the year 2013, an increase of
about 8% over the previous year.
The Company incurred a loss before tax of Rs. 6,758 Lakh compared to a
profit before tax of Rs. 935 Lakh for the year 2013. However after
Exceptional Item relating to Write-back of depreciation of Rs. 9,553
Lakh, there was a profit before tax of Rs. 2,795 Lakh.
The Consolidated loss before tax was Rs. 6,864 Lakh compared to profit
before tax of Rs. 2,391Lakh for the year 2013. However after
Exceptional Item relating to Write-back of depreciation of Rs. 9,553
Lakh, the profit before tax stood at Rs. 2,689 Lakh. The operating
losses were due to execution challenges on some projects and cost
overruns on certain other projects.
On a review of the position of outstanding debts, there are no write
off of bad debts during the year (2013 - Nil).
Total value of new contracts secured during the year aggregated Rs.
254,06l Lakh (2013 - Rs. 267,620 Lakh). Major contracts include-
* Construction of Container Berths atjaigarh, Maharashtra.
* Construction of Seven Stations of Kolkata Metro Railway Line at
Kolkata.West Bengal.
* Design and Construction of Reclamation and Container Yard at
Jawaharlal Nehru Port Trust at Navi Mumbai, Maharashtra.
* Construction of LNG Storage Tanks at Mundra, Gujarat.
* Construction of ContainerTerminal at Mundra, Gujarat.
* Construction of Super Structure for Bose Institute at Kolkata, West
Bengal.
* Construction of Elevated Road at Noida, Uttar Pradesh.
* Construction of different buildings for IIT Ropar from CPWD, Ropar
Punjab.
* Construction of Balance Tunneling works in the State of Jammu and
Kashmirfor Konkan Railway Corporation Limited.
During the year; your Company''s Joint Venture, has received two
contracts namely:
* Construction of Laying of Water Trunk main from Garden Reach water
works to Taratala Valve Station and Laying of sewerline along Diamond
Harbour Road by Microtunnelling method for an approximate value of Rs.
14,592 Lakh in ITD- ITD Cem Joint Venture.
* Rehabilitation and Refurbishment of Water Works at Palta and Garden
Reach for Rs. 8,057 Lakh in ITD-CEMINDIAJV
During the year under report, a number of contracts were completed
including-
* Construction of Ultra Mega Power Project at Sasan, Madhya Pradesh.
* Design and Construction of Approach Tunnel at Jaipur Metro for Delhi
Metro Rail Corporation Limited, Jaipur Rajasthan.
* Prestreesed Rock Anchors atWadala, Mumbai, Maharashtra
* Soil Consolidation by Drilling and Grouting at LNG Terminal, Dabhol,
Maharashtra.
* Design, procurement, construction and commissioning of Marine Civil
Works at Gangavaram Port, Andhra Pradesh.
* Civil works tor approach trestle and jetty at Kandla, Gujarat.
* Construction of Elevated Road at Jaipur Metro for Delhi Metro Rail
Corporation Limited by Company''sJointVenture - ITD-ITD Cem Joint
Venture.
With regard to paragraph 6 of the Auditors'' Report, your Directors
state that:
Trade receivables and Unbilled Work-in-progress as at December 31,2014
include amounts aggregating Rs. 2,655 Lakh and Rs. 1,584 Lakh
respectively, which have been outstanding for a substantial period of
time. The Company has been actively negotiating for speedy recovery of
the balance receivables. In view thereof, the management is reasonably
confident of their recovery ISO 9001:2008, ISO 14001:2004 & OHSAS
18001:2007
The Company has an established Integrated Management System comprising
of Quality Management System conforming to ISO 9001:2008, Environmental
Management System (EMS) conforming to ISO 14001: 2004 and Occupational
Health and Safety Management System conforming to OHSAS 18001:2007 at
all offices, project sites and depots. During the year the Company''s
accreditation has been audited and compliance to the requirements of
the International Standards has been confirmed by DNV GL-Business
Assurance (DNV GL- BA).
The Company is one of few construction companies who have established
an Integrated Management System and are maintaining the system with
proper customer satisfaction, compliance to legal and non-regulatory
requirements as per the Standards along with continual improvements to
the system.
RAISING OF FUNDS THROUGH QUALIFIED INSTITUTIONS PLACEMENT ("QIP").
The Company has issued of 4,000,000 fully paid-up equity shares of face
value Rs. 10 each at a price of Rs. 360/- (including a Premium of Rs.
350) per equity share, aggregating to Rs. 14,400 Lakh through
Qualified Institutional Placement ("QIP"). The shares were allotted on
4th September; 2014.
CORPORATE SOCIAL RESPONSIBILITY
Your Directors are pleased to inform that your Company has constituted
a Corporate Social Responsibility Committee and formulated a Policy in
this regard. A sum of Rs. 33 Lakh had been allocated for three
projects, where the Company is performing its works, in respect of
Corporate Social Responsibility expenditure for this year and of which
Rs. 12.87 Lakh has already been spent on one of the projects.
OUTLOOK
Bolstered by the recent sharp fall in oil prices, cooling inflation and
the new government''s initiatives to improve the investment climate,
prospects for growth in 2015-16 appear to be good. While the capital
markets have responded positively to the developments through the
infusion of funds into portfolio investments, driving market valuations
of many companies, stressed corporate balance sheets are hindering a
recovery in private capital spending. Rising bad loans are also making
banks wary of lending to companies, especially in the construction and
infrastructure space.
The International Monetary Fund (IMF) last month also predicted India
would overtake China next year as the fastest growing major economy
with 6.5 percent annual growth compared with 6.3 percent tor China.The
Economic Survey had, in July 2014, projected India''s GDP growth for
2014-15 in the range between 5.4% and 5.9%. Recently however due to a
change in methodology of computation of growth and a change in the base
year to 2011-12 from the earlier base year of 2004-05 by the Central
Statistics Office (CSO), the Indian economy is estimated to grow by 7.4
per cent in the current fiscal year as against 6.9 per cent in 2013-14.
Although RBI has signaled a fall in interest rates by announcing
recently a reduction in Statutory Liquidity Ratio by 50 basis points to
21.5%, banks have yet to respond to this measure. The general
expectation is that banks may announce rate cuts in April 2015.
Your Company has, through focused and sustained marketing efforts,
built a strong and diversified order book of Rs.476,298 Lakh, a rise of
nearly 25% over the order book at the beginning of 2014, providing good
revenue visibility for the next few years. In January, 201 5, your
Company has received a contract for Dredging and Reclamation works
atjawaharlal Nehru Port of an approximate value of Rs. 2I6,8II Lakh. In
addition, your company is also hopeful of bagging some very prestigious
and large contracts in the first quarter of 2015. To enable financing
this future growth, your Board also raised fresh equity capital in
September 2014 amounting to Rs. 14,400 Lakh.
Despite these very promising overall developments, challenges on
execution on some contracts and pressures on profitability will remain
a drag on performance for the next couple of quarters.
PARENT COMPANY
Italian-Thai Development Public Company Limited (ITD) is engaged in the
business of civil engineering and infrastructure construction and
development and has been a major builder of Thailand''s infrastructure
for over 50 years. ITD achieved an annual consolidated revenue for the
year 2013 of approximately Baht 44,902 million (about Rs. 8,657crore)
which puts it in the lead position amongst contractors in Thailand. In
2013, ITD had a skilled work force of over 28000 employees, including
around I ,660 qualified engineers. An experienced in-house training
division provides its employees with continuous training in safety and
construction skills. The business operations of ITD are in nine major
categories namely: buildings; industrial plants; pipelines and utility
works; highways, railways, high speed rails, viaducts, trackworks, MRT
systems, bridges and expressways; airports, ports and marine works;
dams, tunnels and power plants; steel structures; telecommunications
and mining.
SUBSIDIARY COMPANY AND CONSOLIDATED FINANCIAL STATEMENTS
A Statement pursuant to Section 2I2 of the Companies Act, I956 ("the
Act") containing the details of Company''s subsidiary is attached.
As required under the Listing Agreements with the Stock Exchanges,
Consolidated Financial Statements of the Company and its subsidiary are
attached. The Consolidated Financial Statements have been prepared
inaccordance with Accounting Standards 2I and 27 issued by The
Institute of Chartered Accountants of India and show the financial
resources, assets, liabilities, income, profits and other details of
the Company its subsidiary and its share in joint ventures.
Pursuant to the provisions of Section 212(8) of the Act, Ministry of
Corporate Affairs vide its General Circular No. 2/201 I dated 8th
February 201I has granted a general exemption, subject to certain
conditions, to Holding Companies from complying with the provisions of
Section 2I2 of the Act which requires attaching of its Balance Sheet,
Profit and Loss Accounts and other documents of its Subsidiary Company
to its Balance Sheet. Accordingly the said documents are not included
in this Annual Report. The main financial summary of the Company''s
Subsidiary for the year ended 31st December 2014 is included in the
Annual Report. The Annual Accounts of the Subsidiary Company will be
made available to any Member of the Company seeking such information at
any point of time and are also available for inspection by any Member
of the Company at the Registered Office of the Company on any working
day during business hours.
RESEARCH AND DEVELOPMENT
The Company lays significant emphasis on improvements in methods and
processes in its areas of construction and operations. The Research &
Development Division of the Company continues to enjoy recognition by
the Department of Scientific and Industrial Research, Ministry of
Science and Technology, Government of India. The primary focus of
research is to continually refine the frequently used systems at our
project sites to derive optimization, reduction in the breakdowns,
improve effectiveness and efficiency of use and hence provide a
competitive edge for any project.
PARTICULARS OF EMPLOYEES AND OTHER ADDITIONAL INFORMATION
Information as per Section 217( 1 )(e) of the Act, read with the
Companies (Disclosure of Particulars in the Report of the Board of
Directors) Rules, 1988 relating to the conversion of energy technology
absorption, foreign exchange earnings and outgoings respectively, is
attached hereto and forms part of this Report.
Particulars of employees pursuant to Section 217 (2A) of the Act, read
with the Companies (Particulars of Employees) Rules, 1975, as amended,
is set out in the annexure and forms part of this Report. However in
pursuance of Section 219 (1) (b) (iv) of the Act, the Report and
Accounts is being sent to all the Members of the Company excluding the
aforesaid information and the said particulars will be made available
on request and also made available for inspection at the Registered
Office of the Company Any Member interested in obtaining such
particulars may write to the Company Secretary at the Registered Office
of the Company
DIRECTORS'' RESPONSIBILITY STATEMENT
The Board of Directors state that in the preparation of the annual
accounts, the applicable accounting standards have been followed and
proper explanations have been provided for material departures,
wherever applicable. The Board also confirms that 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 at the
end of the financial year and of the profit of the Company for the year
under report. The Board has taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding the assets of the Company and
for preventing and detecting fraud and other irregularities. It is
further confirmed that the Directors have prepared the annual accounts
on a going concern basis.
DEPOSITORY SYSTEM
It is mandatory that the shares of the Company are traded in electronic
form. The Company has entered into Agreements with both the
depositories i.e. National Securities Depository Limited (NSDL) and
Central Depository Services (India) Limited (CDSL).
CORPORATE GOVERNANCE
Pursuant to Clause 49 of the Listing Agreement with the Stock
Exchanges, Reports on Management Discussion and Analysis and on
Corporate Governance alongwith a certificate of compliance from the
Auditors are attached hereto and form part of this Report.
DELISTING OF EQUITY SHARES FROM THE CALCUTTA STOCK EXCHANGE LIMITED
The equity shares of the Company has been delisted from The Calcutta
Stock Exchange Limited w.e.f. 28th August, 2014.
DIRECTORS
Mr Premchai Karnasuta will retire by rotation and, being eligible,
offer himself for re-appointment.
At a meeting of the Board of Directors held on 6th November 2014, Mrs.
Ramola Mahajani was appointed as an Additional Director of the Company
with effect from 6th November 2014 and also as an Independent Director
for a consecutive period of five years from 6th November, 2014 to 5th
November 2019.
Mrs. Ramola Mahajani holds office as Director upto the date of this
Annual General Meeting and, being eligible, offers herself for
appointment.
AUDITORS
The retiring Auditors, Walker Chandiok & Co LLP, Chartered Accountants,
Mumbai, offer themselves for re-appointment.
INDUSTRIAL RELATIONS
Relations with staff and labour remained peaceful and cordial during
the year under review.
ACKNOWLEDGEMENT
The Directors thank ITD for the continued support extended by it and
the guidance provided to your Company.
The Directors thank all employees for their contribution and the
shareholders, customers and bankers for their continued support.
For and on behalf of the Board
Premchai Karnasuta
February 24, 2015 Chairman
Dec 31, 2013
The Directors present herewith their Report and Statement of Accounts
for the year ended 31st December, 2013.
FINANCIAL RESULTS (Rs. in Lakh)
Year 2013 Year 2012
Total Income 127,893.74 131,451.45
Gross Profit before depreciation
and bad debts 4,944.33 6,922.49
Less: Depreciation on fixed assets 3,348.91 3,604.91
Profit before provision for
doubtful debts 1,595.42 3,317.58
Less: Provision for doubtful debts 660.81 645.21
Profit before Taxation 934.61 2,672.37
Less: Provision for Taxation/
(deferred Tax Credit) 3.67 474.60
Profit after Taxation 930.94 2,197.77
Add : Surplus of previous year
brought forward 6,285.11 4,519.85
Amount available for
appropriation 7,216.05 6,717.62
Directors'' recommendation
for appropriation:
Proposed Dividend 115.16 230.32
Dividend Distribution Tax
(Incl. earlier year) 21.35 37.36
Transfer to General Reserve 23.27 164.83
Balance carried to Balance Sheet 7,056.27 6,285.11
7,216.05 6,717.62
DIVIDEND
The Directors are pleased to recommend dividend of Rs. 1.00 per share
(2012 Â Rs. 2.00 per share), on 11,515,790 equity shares of Rs. 10 each
fully paid. The above dividend, together with tax thereon, if approved,
will represent 14.5% of distributable profits of Rs. 930.94 Lakh for the
year.
REVIEW OF OPERATIONS
Revenue for the year at Rs. 122,476 Lakh has declined by Rs. 6,317 Lakh
from Rs. 128,793 Lakh in the year 2012, a decline of about 5% over
previous year. Consolidated revenue for the year was also lower at Rs.
157,837 Lakh as compared to Rs. 164,472 Lakh for the year 2012, a decline
of about 4% over the previous year.
The Company''s profit before tax for the year was lower by 65% at Rs. 935
Lakh compared to a profit before tax of Rs. 2,672 Lakh for the year 2012.
The Consolidated profit before tax for the year was lower by 23% at Rs.
2,391 Lakh compared to profit before tax of Rs. 3,107 Lakh for the year
2012.
The profit after tax for the year at Rs. 931 Lakh was lower by Rs. 1,267
Lakh in comparison with 2012 because of lower revenues and reduction in
margins because of change in the composition of revenues from different
types of construction work.
On a review of the position of outstanding debts, there are no write
off of bad debts during the year (2012 - Rs. 450 Lakh).
Total value of new contracts secured during the year aggregated Rs.
267,620 Lakh (2012 - Rs. 143,502 Lakh). Major contracts include-
- Construction of six lane link road including Road over Bridge,
Ghaziabad.
- Comprehensive Development of Corridor between Mangolpuri to Madhuban
Chowk including construction of Elevated Road, Foot over Bridge and
allied works for PWD, Delhi.
- Comprehensive Development of Corridor between Madhuban Chowk to
Mukarba Chowk including construction of Elevated Road, Foot over Bridge
and allied works for PWD, Delhi.
- Construction of New Haj Tower Complex at Rajarhat, West Bengal.
- Development of Marine facilities at Karanja Creek, Uran, Maharashtra.
- Part Design and Construction of Elevated viaduct and 2 elevated
stations, Phase III of Delhi MRTS, Delhi.
- Design and build construction of 330 meter Wharf Structure at Nhava
Sheva, Maharashtra.
- Construction of the Balance Works of the Ramps, Cut and Cover Tunnel
of Chennai Metro Rail Project, Phase I, Chennai.
During the year, your Company''s Joint Venture, ITD- ITD Cem Joint
Venture, has received two contracts namely: Design and Construction of
Tunnels by shield TBM, Palam and I.G.D. Airport Underground Stations by
Cut & Cover Method between Palam (including) & Shankar Vihar
(excluding) on Janakpuri West - Kalindi Kunj Corridor under Delhi MRTS
Project of Phase-III for Delhi Metro Rail Corporation of the value of Rs.
75,200 Lakh and Procurement of Ground Water Treatment Plants, Design,
Construction, Supply, Installation, Commissioning including Mechanical
& Electrical Equipment and Operation for Government of Tripura (SIPMIU)
of the value of Rs. 3,988 Lakh.
- During the year under report, a number of contracts were
completed including-
- Civil works, service and allied works for Modernisation at GRSE -
Main Unit for Garden Reach Shipbuilders and Engineers Limited, Kolkata.
- Bored Cast-in-situ Piling, Diaphragm Wall and Ground Improvement work
at Dahej, Gujarat.
- Piling work for multi-storeyed residential complex at Jaypee Greens,
Noida.
- Construction of Ship Repair facility at Lavgan, Maharashtra.
- Construction of Landside structure for Ship Repair facility at
Jaigad, Maharashtra.
- Construction of Integrated Passenger Terminal Building at NSCBI
Airport, Kolkata.
- Piling work for SEPCO, Cuddalore, Tamil Nadu.
The Directors state that subsequent to the year end, a client of the
Company has, pursuant to its contract with the Company for execution of
work, invoked bank guarantees provided to the client by the Company''s
banks. Banks have made payments to the client aggregating to Rs. 9,200
Lakh. The Company is currently in dialogue with the client to resolve
the matter amicably and the Company has reasons to believe that the
matter will be favorably resolved.
A disclosure in this regard has been made under Notes 29 (g) and 28(h)
under the heading ''Contingent Liabilities'' for the Standalone
Financials and Consolidated Financials respectively.
ISO 9001:2008, ISO 14001:2004 & OHSAS 18001:2007
The Company has an established Integrated Management System comprising
of Quality Management System conforming to ISO 9001:2008, Environmental
Management System (EMS) conforming to ISO 14001:2004 and Occupational
Health and Safety Management System conforming to OHSAS18001:2007 at
all offices, project sites and depots. During the year, the Company''s
accreditation has been audited and compliance to the requirements of
the International Standards has been confirmed by Det Norske VERITAS AS
(DNV).
The Company is amongst a few construction companies who have
established an Integrated Management System and are maintaining the
system with proper customer satisfaction along with continual
improvements to the system.
OUTLOOK
The overall infra growth environment for the construction sector during
the year gone by was very challenging. But your Company, with its
strong execution capabilities and strong balance sheet has sailed
steadily through these difficult times. Government has recently taken
a number of measures to fast track infrastructure growth and a few
encouraging signs are already visible. The inflation though sticky,
with tight liquidity scenario, is expected to cool in the coming
months. This may lead to a fall in interest rate in the system. Your
Company has already built a strong and diversified order book of Rs.
382,118 Lakh for the year, which, gives it good revenue visibility for
more than two years. It is expected that the years ahead would bring
great opportunities in the key business areas that your Company is
focused in.
PARENT COMPANY
Italian-Thai Development Public Company Limited (ITD) is engaged in the
business of civil engineering and infrastructure construction and
development and has been a major builder of Thailand''s infrastructure
for over 50 years. It had an annual consolidated revenue for the year
2012 of approximately Baht 46,970 million (about Rs. 8,330 crore) which
puts it in the lead position amongst contractors in Thailand. In 2012,
ITD had a skilled work force of around 24,278 employees, including
around 1,502 qualified engineers. An experienced in-house training
division provides its employees with continuous training in safety and
construction skills. The business operations of ITD are in nine major
categories namely: buildings; industrial plants; pipelines and utility
works; highways, railways, high speed rails, viaducts, track works, MTR
systems, bridges and expressways; airports, ports and marine works;
dams, tunnels and power plants; steel structures; telecommunications
and mining.
SUBSIDIARY COMPANY AND CONSOLIDATED FINANCIAL STATEMENTS
A Statement pursuant to Section 212 of the Companies Act, 1956 ("the
Act") containing the details of Company''s subsidiary is attached.
As required under the Listing Agreements with the Stock Exchanges,
Consolidated Financial Statements of the Company and its subsidiary are
attached. The Consolidated Financial Statements have been prepared in
accordance with Accounting Standards 21 and 27 issued by The Institute
of Chartered Accountants of India and show the financial resources,
assets, liabilities, income, profits and other details of the Company,
its subsidiary and its share in joint ventures.
Pursuant to the provisions of Section 212(8) of the Act, Ministry of
Corporate Affairs vide its General Circular No. 2/2011 dated 8th
February, 2011 has granted a general exemption, subject to certain
conditions, to Holding Companies from complying with the provisions of
Section 212 of the Act which requires attaching of its Balance Sheet,
Profit and Loss Accounts and other documents of its Subsidiary Company
to its Balance Sheet. Accordingly, the said documents are not included
in this Annual Report. The main financial summary of the Company''s
Subsidiary for the year ended 31st December, 2013 is included in the
Annual Report. The Annual Accounts of the Subsidiary Company will be
made available to any Member of the Company seeking such information at
any point of time and are also available for inspection by any Member
of the Company at the Registered Office of the Company on any working
day during business hours.
RESEARCH AND DEVELOPMENT
The Company lays significant emphasis on improvements in methods and
processes in its areas of construction and operations. The Research &
Development Division of the Company continues to enjoy recognition by
the Department of Scientific and Industrial Research, Ministry of
Science and Technology, Government of India. The primary focus of
research is to continually refine the frequently used systems at our
project sites to derive optimization, reduction in the breakdowns,
improve effectiveness and efficiency of use and hence provide a
competitive edge for any project.
PARTICULARS OF EMPLOYEES AND OTHER ADDITIONAL INFORMATION
Information as per Section 217(1)(e) of the Act, read with the
Companies (Disclosure of Particulars in the Report of the Board of
Directors) Rules, 1988 relating to the conversion of energy, technology
absorption, foreign exchange earnings and outgoings respectively, is
attached hereto and forms part of this Report.
Particulars of employees pursuant to Section 217 (2A) of the Act, read
with the Companies (Particulars of Employees) Rules, 1975, as amended,
is set out in the annexure and forms part of this Report. However, in
pursuance of Section 219 (1) (b) (iv) of the Act, the Report and
Accounts is being sent to all the Members of the Company excluding the
aforesaid information and the said particulars will be made available
on request and also made available for inspection at the Registered
Office of the Company. Any Member interested in obtaining such
particulars may write to the Company Secretary at the Registered Office
of the Company.
DIRECTORS'' RESPONSIBILITY STATEMENT
The Board of Directors state that in the preparation of the annual
accounts, the applicable accounting standards have been followed and
proper explanations have been provided for material departures,
wherever applicable. The Board also confirms that 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 at the
end of the financial year and of the profit of the Company for the year
under report. The Board has taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding the assets of the Company and
for preventing and detecting fraud and other irregularities. It is
further confirmed that the Directors have prepared the annual accounts
on a going concern basis.
DEPOSITORY SYSTEM
It is mandatory that the shares of the Company are traded in electronic
form. The Company has entered into Agreements with both the
depositories i.e. National Securities Depository Limited (NSDL) and
Central Depository Services (India) Limited (CDSL).
CORPORATE GOVERNANCE
Pursuant to Clause 49 of the Listing Agreement with the Stock
Exchanges, Reports on Management Discussion and Analysis and on
Corporate Governance along with a certificate of compliance from the
Auditors are attached hereto and form part of this Report.
DIRECTORS
Mr. Per Hofvander and Mr. Deba Prasad Roy retire by rotation and, being
eligible, offer themselves for re- appointment.
AUDITORS
The retiring Auditors, Walker, Chandiok & Co., Chartered Accountants,
Mumbai, offer themselves for re- appointment.
INDUSTRIAL RELATIONS
Relations with staff and labor remained peaceful and cordial during
the year under review.
ACKNOWLEDGEMENT
The Directors thank ITD for the continued support extended by it and
the guidance provided to your Company.
The Directors thank all employees for their contribution and the
shareholders, customers and bankers for their continued support.
For and on behalf of the Board
Premchai Karnasuta
February 26, 2014 Chairman
Dec 31, 2012
The Directors present herewith their Report and Statement of Accounts
for the year ended 31st December, 2012.
FINANCIAL RESULTS
(Rupees in Lakhs)
Year 2012 Year 2011
Total Income 130,711.49 131,035.22
Gross Profit before depreciation and bad debts 6,922.49 6,631.96
Less: Depreciation on fixed assets 3,604.91 3,422.83
Profit before provision for doubtful debts 3,317.58 3,209.13
Less: Provision for doubtful debts 645.21 1,006.47
Profit before Taxation 2,672.37 2,202.66
Less: Provision for Taxation/(deferred
Tax Credit) 474.60 (54.92)
Profit after Taxation 2,197.77 2,257.58
Add : Surplus of previous year brought forward 4,519.85 2,698.60
Add: Corporate dividend tax written back - 0.67
Amount available for appropriation 6,717.62 4,956.85
Directors'' recommendation for appropriation:
Proposed Dividend 230.32 230.32
Dividend Distribution Tax 37.36 37.36
Transfer to General Reserve 164.83 169.32
Balance carried to Balance Sheet 6,285.11 4,519.85
6,717.62 4,956.85
DIVIDEND
The Directors are pleased to recommend dividend of Rs.2.00 per share
(2011Â Rs.2.00 per share), on 11,515,790 equity shares of Rs.10 each
fully paid. The above dividend, together with tax thereon, if approved,
will represent 12% of distributable prof ts of Rs.2,197.77 Lakh for the
year.
REVIEW OF OPERATIONS
Revenue for the year at Rs.128,053 Lakh has declined by Rs.1,000 Lakh
from Rs.129,053 Lakh in the year 2011. Consolidated revenue for the
year was also lower at Rs.163,380 Lakh as compared to Rs.170,845 Lakh
for the year 2011, a decline of about 4% over the previous year.
The Company''s prof t before tax, however, improved by 21% to Rs.2,672
Lakh compared to a prof t before tax of Rs.2,203 Lakh for the year
2011.
During the last quarter of the year October 2012 to December 2012, we
experienced some delays and slowdown in some projects, which af ected
our performance in the quarter.
The Consolidated prof t before tax for the year was Rs.3,107 Lakh
compared to prof t before tax of Rs.2,817 Lakh for the year 2011, an
increase of about 10%.
The prof t after tax for the year at Rs.2,198 Lakh was slightly lower
by Rs. 60 Lakh in comparison with 2011 because of one time deferred tax
credit that was available in 2011.
After a review of the position of outstanding debts, your Directors
have decided to write-of bad debts amounting to Rs.450.16 Lakh (2011-
Rs.1,235.44 Lakh).
Total value of new contracts secured during the year aggregated
Rs.143,502 Lakh (2011 -Rs.113,206 Lakh). Major contracts include-
- Piling work in Mahanadi River for Water Pipeline at Cuttak City,
Orissa.
- Piling, Civil and Temporary Construction facility works for GIR
Project at Dahej, Gujarat.
- Construction of North Cargo Berth II at VOC Port, Tuticorin, Tamil
Nadu.
- Marine Civil works for development of Gangavaram Port Expansion Phase
II at Visakhapatnam, Andhra Pradesh.
- Construction of Berth No.15 at Kandla Port, Gujarat.
- Construction of Landside structure for Ship Repair facility at
Jaigad, Maharashtra.
- Civil works for Approach and Jetty for the development of Dry Bulk
Terminal at Tuna, Kandla, Gujarat.
During the year, your Company''s Joint Venture, ITD-ITD Cem Joint
Venture, has received a contract from Delhi Metro Rail Corporation for
Part Design and Construction of Elevated viaduct including entry exit
lane, ramp to depot and 8 elevated stations including architectural f
nishing, water supply, sanitatary installation and drainage works of
stations, Delhi - value Rs.54,600 Lakh.
During the year under report a number of contracts were completed
including-
- Design and Construction of Container Terminal at South Port, Mundra,
Gujarat.
- Construction of Integrated Cargo Terminal facility at Jaigad,
Maharashtra.
- Construction of Cargo Berth No.9 for Tuticorin Port , Tamil Nadu.
- Construction of Impounded Wet Basin at Mazagaon Dock, Mumbai,
Maharashtra.
- Construction of Diaphragm Wall and Anchor Slab with special f ll at
Sabarmati, Gujarat.
- Various Piling and Civil works in Gujarat; Chhattisgarh; Orissa;
Sikkim; Uttar Pradesh; Tamil Nadu; Punjab; Haryana and Maharashtra.
ISO 9001:2008, ISO 14001:2004 & OHSAS 18001:2007
The Company has established Integrated Management System comprising of
Quality Management System conforming to ISO 9001:2008, Environmental
Management System (EMS) conforming to ISO 14001: 2004 and Occupational
Health and Safety Management System conforming to OHSAS 18001:2007 at
all of ces, project sites and depots. During the year, the Company''s
accreditation has been audited and compliance to the requirements of
the Standards has been conf rmed by Det Norske Veritas (DNV).
The Company is amongst a few construction companies who have
established an Integrated Management System and maintaining the system
with proper customer satisfactions along with continual improvement of
the system.
OUTLOOK
The outlook for the world economy is not encouraging. Most forecasts
predict the growth for the world economy for 2013 to be at about 3.2%.
As far as India is concerned, the GDP growth in 2012-2013 is likely to
fall below the Reserve Bank''s baseline projection of 5.8%. Advance
estimates of National Income, 2012-2013, estimates the GDP growth for
2012-2013 at 5%.
Your Company continues to pursue opportunities in marine, foundation
and specialist engineering and mass rapid transport system (MRTS)
projects, where it has built strong capability over the years. Your
Company is also looking to enhance its presence in civil works for
industrial projects, where hitherto it was mainly involved in piling
and foundation work. Delays in f nalization of orders on account of
non-receipt of environment clearances and /or f nancial closure on some
major prospects and lack of orders in certain areas are some matters of
concern. This situation is likely to continue for some more time which,
in turn, may impact your Company''s performance in the current year.
Although RBI expects inf ation to moderate below its baseline
projection of 7.5%, suppressed inf ation continues to pose a threat
and, consequently, RBI maintains a cautious approach to interest rate
reduction. But recent actions by RBI to reduce CRR and repo rates have
raised expectations on lower interest rates by the middle of the year.
Despite short term challenges faced by the infrastructure sector as a
whole, your Company is cautiously optimistic about the future prospects
for the sector.
PARENT COMPANY
Italian-Thai Development Public Company Limited (ITD) is engaged in the
business of civil engineering and infrastructure construction and
development and has been a major builder of Thailand''s infrastructure
for over 50 years. It had an annual consolidated revenue for the year
2011 of approximately Baht 44,945 million (about Rs.7,701.10 crore)
which puts it in the lead position amongst contractors in Thailand. In
2011, ITD had a skilled work force of around 22,318 employees,
including around 1,403 qualif ed engineers. An experienced in-house
training division provides its employees with continuous training in
safety and construction skills. The business operations of ITD are in
nine major categories namely: buildings; industrial plants; pipelines
and utility works; highways, railways, bridges and expressways;
airports, ports and marine works; dams, tunnels and power plants;
mining; steel structures and telecommunications.
SUBSIDIARY COMPANY AND CONSOLIDATED FINANCIAL STATEMENTS
A Statement pursuant to Section 212 of the Companies Act, 1956 ("the
Act") containing the details of Company''s subsidiary is attached.
As required under the Listing Agreements with the Stock Exchanges,
Consolidated Financial Statements of the Company and its subsidiary are
attached. The Consolidated Financial Statements have been prepared in
accordance with Accounting Standards 21 and 27 issued by The Institute
of Chartered Accountants of India and show the f nancial resources,
assets, liabilities, income, prof ts and other details of the Company,
its subsidiary and its share in joint ventures.
Pursuant to the provisions of Section 212(8) of the Act, Ministry of
Corporate Af airs vide its General Circular No. 2/2011 dated 8th
February, 2011 has granted a general exemption subject to certain
conditions to Holding Companies from complying with the provisions of
Section 212 of the Act which requires attaching of its Balance Sheet,
Prof t and Loss Accounts and other documents of its Subsidiary Company
to its Balance Sheet. Accordingly, the said documents are not included
in this Annual Report. The main f nancial summary of the Company''s
Subsidiary for the year ended 31st December, 2012 is included in the
Annual Report. The Annual Accounts of the Subsidiary Company will be
made available to any Member of the Company seeking such information at
any point of time and are also available for inspection by any Member
of the Company at the Registered Of ce of the Company on any working
day during business hours.
RESEARCH AND DEVELOPMENT
The Company lays signif cant emphasis on improvements in methods and
processes in its areas of construction and operations. The Research &
Development Division of the Company continues to enjoy recognition by
the Department of Scientif c and Industrial Research, Ministry of
Science and Technology, Government of India. The primary focus of
research is to continually ref ne the frequently used systems at our
project sites to derive optimization, reduction in the breakdowns and
improve ef ectiveness and ef ciency of use, through the introduction of
new and improved techniques.
PARTICULARS OF EMPLOYEES AND OTHER ADDITIONAL INFORMATION
Information as per Section 217(1)(e) of the Act, read with the
Companies (Disclosure of Particulars in the Report of the Board of
Directors) Rules, 1988 relating to the conversion of energy, technology
absorption, foreign exchange earnings and outgoings respectively, is
attached hereto and forms part of this Report.
Particulars of employees pursuant to Section 217 (2A) of the Act, read
with the Companies (Particulars of Employees) Rules, 1975, as amended,
is set out in the annexure and forms part of this Report. However, in
pursuance of Section 219 (1) (b) (iv) of the Act, the Report and
Accounts is being sent to all the Members of the Company excluding the
aforesaid information and the said particulars will be made available
on request and also made available for inspection at the Registered Of
ce of the Company. Any Member interested in obtaining such particulars
may write to the Company Secretary at the Registered Of ce of the
Company.
DIRECTORS'' RESPONSIBILITY STATEMENT
The Board of Directors state that in the preparation of the annual
accounts, the applicable accounting standards have been followed and
proper explanations have been provided for material departures,
wherever applicable. The Board also conf rms that 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 af airs of the Company at the
end of the f nancial year and of the prof t of the Company for the year
under report. It is further stated that the Board has taken proper and
suf cient care for the maintenance of adequate accounting records in
accordance with the provisions of the Act for safeguarding the assets
of the Company and for preventing and detecting fraud and other
irregularities. It is further conf rmed that the Directors have
prepared the annual accounts on a going concern basis.
DEPOSITORY SYSTEM
It is mandatory that the shares of the Company are traded in electronic
form. The Company has entered into Agreements with both the
depositories ie. National Securities Depository Limited (NSDL) and
Central Depository Services (India) Limited (CDSL).
CORPORATE GOVERNANCE
Pursuant to Clause 49 of the Listing Agreement with the Stock
Exchanges, Reports on Management Discussion and Analysis and on
Corporate Governance alongwith a certif cate of compliance from the
Auditors are attached hereto and form part of this Report.
DIRECTORS
Mr. Premchai Karnasuta and Mr. Pathai Chakornbundit retire by rotation
and, being eligible, of er themselves for re- appointment.
AUDITORS
The retiring Auditors, Walker, Chandiok & Co., Chartered Accountants,
Mumbai, of er themselves for re-appointment.
INDUSTRIAL RELATIONS
Relations with staf and labour remained peaceful and cordial during the
year under review.
ACKNOWLEDGEMENT
The Directors thank ITD for the continued support extended by it and
the guidance provided to your Company.
The Directors thank all employees for their contribution and the
shareholders, customers and bankers for their continued support.
For and on behalf of the Board
Premchai Karnasuta
February 28, 2013 Chairman
Dec 31, 2011
The Directors present herewith their Report and Statement of Accounts
for the year ended 31st December, 2011.
FINANCIAL RESULTS
(Rupees in Lakhs)
Year 2011 Year 2010
Total Income 131,035.22 109,573.75
gross Prof t before
depreciation and bad debts 6,631.96 5,795.59
Less: Depreciation on fixed assets 3,422.83 3,075.15
Net Prof t before provision for
doubtful debts 3,209.13 2,720.44
Less: Provision for doubtful debts 1,006.47 1,496.95
Prof t before Taxation 2,202.66 1,223.49
Less: Provision for Taxation/(
deferred Tax Credit) (54.92) 284.98
Prof t after Taxation 2,257.58 938.51
Add : Surplus of previous year
brought forward 2,698.60 2,008.00
Add: Corporate dividend tax
written back 0.66 0.45
Amount available for appropriation 4,956.84 2,946.96
Directors' recommendation for
appropriation:
Proposed Divided 230.32 172.74
Dividend Distribution Tax 37.36 28.69
Transfer to General Reserve 169.32 46.93
Balance carried to Balance Sheet 4,519.84 2,698.60
4,956.84 2,946.96
DIVIDEND
The Directors are pleased to recommend dividend of Rs.2.00 per share
(2010ÃRs.1.50 per share), on 11,515,790 equity shares of Rs.10 each fully
paid. The above dividend, together with tax thereon, if approved, will
represent 11.86 % of distributable profits of Rs.2,257.58 Lakhs for the
year.
REVIEW OF OPERATIONS
Revenue for the year was Rs.129,745 Lakhs compared to Rs.107,193 Lakhs for
the year 2010 an increase of 21% over the previous year. Consolidated
revenue for the year was Rs.171,219 Lakhs as compared to Rs.146,216 Lakhs
for the year 2010, an increase of 17% over the previous year.
For the year 2011, the Company made a profit before tax of Rs.2,203 Lakhs
compared to a profit of Rs.1,223 Lakhs for the year 2010, showing an
increase of 80%.
The increase in profit before tax was primarily due to improved
contribution especially from marine, foundation and specialist
projects.
The Consolidated profit before tax for the year was Rs.2,817 Lakhs
compared to profit before tax of Rs.2,075 Lakhs for the year 2010, an
increase of 36%.
The Directors have reviewed the outstanding debts and have decided to
write-of Rs.1,235.44 Lakhs (2010 -Rs.1,125.28 Lakhs).
Total value of new contracts secured during the year aggregated
Rs.113,206 Lakhs (2010 - Rs.193,139 Lakhs). Major contracts include-
- Construction of Ship Repair facility at Lavgan, Maharashtra.
- Road Project (6 laning of Pune - Satara Road - Phase 1) Maharashtra.
- Construction of Terminal 12 Berth at Mundra, Gujarat.
- Piling work at Cuddalore for 2 x 600 MW Power Project in Tamil Nadu.
- Construction of Diaphragm Wall and Capping Beam for proposed
residential complex at Wadala, Mumbai, Maharashtra.
- Piling work for multi-storied residential complex at Jaypee Greens,
Noida. During the year under report a number of contracts were
completed including-
- Civil works for Iron Ore Port Terminal at Encore Port, Chennai.
- Various Piling and Civil Works in Uttar Pradesh, Orissa, Gujarat, and
Andhra Pradesh.
With regard to paragraphs 5(vi) (a) and 5 (vi) (b) of the Auditors'
Report, your Directors state that:
(a) Sundry Debtors at December 31, 2011 include variation claims of
Rs.3,455 Lakhs, which are disputed by the customer. Out of this, claims
amounting to Rs.2,346 Lakhs are the subject matter of arbitration. The
Company has received arbitration awards in its favor in respect of the
balance amount of Rs.1,109 Lakhs, which have since been challenged by the
customer. Based on the legal advice from Company's counsel in the
matter, the management is reasonably conf dent of recovery of the
amounts.
(b) Sundry Debtors at December 31, 2011 include Rs.3,384 Lakhs
representing interim work bills for work done which have not been
certified by customers beyond normal periods Offi certification. The
management is reasonably conf dent of the certification and recovery of
the same progressively on these contracts based on past experience of
the Company, assessment of work done and the fact that these amounts
are not disputed by the customer.
ISO 9001:2008, ISO 14001 : 2004 AND OHSAS-18001:2007
Your Company has established at all Offi cess project sites and depots
Quality Management System (QMS) conforming to ISO 9001:2008,
Environmental Management System (EMS) conforming to ISO 14001:2004 and
Occupational Health and Safety Management System (OHSMS) conforming to
OHSAS 18001:2007.
During the year the Company's accreditation has been audited and
re-certified by Det Norske Verities (DNV).
Your Company is amongst a few construction companies who have
established an Integrated Management System comprising QMS, EMS and
OHSMS covering all project sites.
OUTLOOK
Y our Company has gained from the successful execution of underground
and elevated sections of metro projects at Delhi, which has helped it
to obtain other similar projects at Jaipur, Kolkata and Bangalore.
Your Company has a significant presence in marine projects, mass rapid
transport system (MRTS), airports, roads and foundation and specialist
engineering. This has resulted in award of prestigious marine contracts
from Lavgan and Mundra and a large road project in Maharashtra.
However, the pressure of high interest rates that prevailed throughout
last year is likely to continue at least in the first half of the
current year. The upward trend in commodity prices is also likely to
continue during the year ahead. For your Company, lack of orders during
the year under report, is also a cause of concern.
Nevertheless, the medium and long term scenario seems to be positive.
Government of India is emphasizing infrastructure projects. Total
planned investment in infrastructure sector during the Twelfth Five
Year Plan is estimated to be twice that in the Eleventh Five Year Plan.
Your Company, therefore, looks forward with cautions optimism to a
period of growth.
PARENT COMPANY
Italian-Thai Development Public Company Limited (ITD) is engaged in the
business of civil and infrastructure construction and development and
has been a major builder of Thailand's infrastructure for over 50
years. It had an annual consolidated revenue for the year 2010 of
approximate Baht 39,143 million (about Rs.6,759.10 Crores) which puts it
in the lead position amongst contractors in Thailand. In 2010, ITD had
a skilled work force of around 21,362 employees, including around 1,338
qualified engineers. An experienced in-house training division provides
its employees with continuous training in safety and construction
skills. The business operations of ITD are in nine major categories
namely: buildings; industrial plants; pipelines and utility works;
highways, railways, bridges and expressways; airports, ports and marine
works; dams, tunnels and power plants; mining; steel structures and
telecommunications.
SUBSIDIARY COMPANY AND CONSOLIDATED FINANCIAL STATEMENTS
A Statement pursuant to Section 212 of the Companies Act, 1956 ("the
Act") containing the details of Company's subsidiary is attached.
As required under the Listing Agreements with the Stock Exchanges,
Consolidated Financial Statements of the Company and its subsidiary are
attached. The Consolidated Financial Statements have been prepared in
accordance with Accounting Standards 21 and 27 issued by The Institute
of Chartered Accountants of India and show the financial resources,
assets, liabilities, income, profits and other details of the Company,
its subsidiary and its share in joint ventures.
Pursuant to the provisions of Section 212(8) of the Act, Ministry of
Corporate Affairs vide its General Circular No. 2/2011 dated 8th
February, 2011 has granted a general exemption subject to certain
conditions to Holding Companies from complying with the provisions of
Section 212 of the Act which requires attaching of its Balance Sheet,
Prof t and Loss Accounts and other documents of its Subsidiary Company
to its Balance Sheet. Accordingly, the said documents are not included
in this Annual Report. The main financial summary of the Company's
Subsidiary for the year ended 31st December, 2011 is included in the
Annual Report. The Annual Accounts of the Subsidiary Company will be
made available to any Member of the Company seeking such information at
any point of time and are also available for inspection by any Member
of the Company at the Registered Office of the Company on any working
day during business hours.
RESEARCH AND DEVELOPMENT
The Company lays significant emphasis on improvements in methods and
processes in its areas of construction and operations. The Research &
Development Division of the Company continues to enjoy recognition by
the Department of Scientific c and Industrial Research, Ministry of
Science and Technology, Government of India. The primary focus of
research is to continually refine the frequently used systems at our
project sites to derive optimization, reduction in the breakdowns and
improve effectiveness and efficiency of use, through the introduction of
new and improved techniques.
PARTICULARS OF EMPLOYEES AND OTHER ADDITIONAL INFORMATION
Information as per Section 217(1)(e) of the Act, read with the
Companies (Disclosure of Particulars in the Report of the Board of
Directors) Rules, 1988 relating to the conversion of energy, technology
absorption, foreign exchange earnings and outgoings respectively, is
attached hereto and forms part of this Report.
Particulars of employees pursuant to Section 217 (2A) of the Act, read
with the Companies (Particulars of Employees) Rules, 1975, as amended,
is set out in the annexure and forms part of this Report. However, in
pursuance of Section 219 (1) (b) (iv) of the Act, the Report and
Accounts is being sent to all the Members of the Company excluding the
aforesaid information and the said particulars will be made available
on request and also made available for inspection at the Registered
Office of the Company. Any Member interested in obtaining such
particulars may write to the Company Secretary at the Registered
Office of the Company.
DIRECTORS' RESPONSIBILITY STATEMENT
The Board of Directors state that in the preparation of the annual
accounts the applicable accounting standards have been followed and
proper explanations have been provided for material departures,
wherever applicable. The Board of Directors also confirm that 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 at the end of the financial year and of the profit of the
Company for the year under report. It is further stated that the Board
of Directors have taken proper and sufficient care for the maintenance
of adequate accounting records in accordance with the provisions of the
Act for safeguarding the assets of the Company and for preventing and
detecting fraud and other irregularities. It is further confirmed that
the Directors have prepared the annual accounts on a going concern
basis.
DEPOSITORY SYSTEM
It is mandatory that the shares of the Company are traded in electronic
form. The Company has entered into Agreements with both the
depositories ie. National Securities Depository Limited (NSDL) and
Central Depository Services (India) Limited (CDSL).
CORPORATE GOVERNANCE
Pursuant to Clause 49 of the Listing Agreement with the Stock
Exchanges, Reports on Management Discussion and Analysis and on
Corporate Governance along with a certificate of compliance from the
Auditors are attached hereto and form part of this Report.
DIRECTORS
Mr. Peshwan Jehangir resigned as Director of the Company with effect
from 28th February, 2012. Directors placed on record their sincere
appreciation of the valuable contribution made by Mr. Jehangir during
his tenure as Director of the Company.
Mr. Per Hofvander and Mr. D.E. Udwadia retire by rotation and, being
eligible, offer themselves for re-appointment.
AUDITORS
Messrs S.R. Batliboi & Associates, the retiring auditors of the
Company, have expressed their inability to seek re- appointment as the
statutory auditors of the Company. In view thereof the Board has
appointed, subject to approval of the shareholders, Messrs Walker,
Chandiok & Co., Chartered Accountants, Mumbai, as the statutory
auditors of the Company to hold office from the conclusion of this
Annual General Meeting up to the conclusion of the next Annual General
Meeting.
The Directors placed on record their appreciation of the valuable
services rendered by Messrs S.R. Batliboi & Associates as Auditors.
INDUSTRIAL RELATIONS
Relations with staff and labour remained peaceful and cordial during the
year under review.
ACKNOWLEDGEMENT
The Directors thank ITD for its continued support extended and the
guidance provided to your Company.
The Directors thank all employees for their contribution and the
shareholders, customers and bankers for their continued support.
For and on behalf of the Board
Premchai Karnasuta
February 29, 2012 Chairman
Dec 31, 2009
The Directors present herewith their Report and Statement of Accounts
for the year ended 31 st December, 2009.
FINANCIAL RESULTS
(In Rupees Lakhs)
Year 2009 Year 2008
Total Income 99,711.25 97,961.41
Gross Profit before depreciation
and bad debts 4,636.57 3,094.53
Less: Depreciation on fixed assets 3,060.01 1,972.53
Net Profit before provision for
doubtful debts 1,576.56 1,122.00
Less: Provision for doubtful debts 810.24 477.99
Profit before Taxation 766.32 644.01
Less: Provision for Taxation 225.79 94.08
Profit after Taxation 540.53 549.93
Add: Surplus of previous year
brought forward 1,615.70 1,214.25
Amount available for appropriation 2,156.23 1,764.18
Directors recommendation for appropriation:
Proposed Dividend 115.16 115.16
Dividend Distribution Tax 19.57 19.57
Transfer to General Reserve 13.51 13.75
Balance carried to Balance Sheet 2,007.99 1,615.70
2,156.23 1,764.18
DIVIDEND
The Directors are pleased to recommend dividend of Re. 1.00 per share
(2008 - Re. 1.00 per share), on 11515790 equity shares of Rs. 10 each
fully paid. The above dividend, together with tax thereon, when
approved, will represent about 25% of distributable profits of Rs.
540.53 Lakhs for the year.
REVIEW OF OPERATIONS
Revenue for the year was Rs. 97,967 Lakhs compared to Rs. 96,560 Lakhs
for the year 2008. As per Consolidated Accounts revenue for the year
was Rs. 147,464 Lakhs, an increase of 10% over the previous years Rs.
1 33,665 Lakhs.
For the year 2009, the Company has made a profit before tax of Rs.
766.32 Lakhs compared to a profit of Rs. 644.01 Lakhs for the year
2008, showing an increase of 19%.
The profit before tax increased primarily due to reduction in input
cost and recovery of service income from joint venture projects.
As per Consolidated Accounts profit before tax for the year was Rs.
1,590.69 Lakhs compared to profit before tax of Rs. 1,463.56 Lakhs for
the year 2008.
During the year the Company has obtained orders in new segments such as
micro-tunneling and track laying for MRTS on the back of technology
support from Parent Company.
As a strategy, the Company will continue to explore all such available
avenues of growth.
The Directors have reviewed the outstanding debts and have decided to
write-off Rs. 134.68 Lakhs (2008 - Rs. 185.96 Lakhs).
Total value of new contracts secured during the year aggregated Rs.
163,689 Lakhs (2008 - Rs. 129,882 Lakhs). Major contracts include-
- Investigation, design and execution of water conveyor system
(Pranahita Chevalla Sujala Sravanthi Package No. 17) for Government of
Andhra Pradesh.
- Civil works, service and allied works for Modernisation at GRSE -
Main Unit at Kolkata for Garden Reach Shipbuilders and Engineers
Limited.
- Bored Cast-in-situ Piling, Diaphragm Wall and Ground Improvement work
for ABG Shipyard at Dahej, Gujarat.
- Piling work for O.P. jindal Super Thermal Power Plant at Tamnar,
Chattisgarh.
- Design and Construction of Offshore civil super structure works for
Coal Conveyor at Tuticorin, Tamil Nadu.
New contracts secured by joint Venture
During the year, your Company in joint venture with Italian-Thai
Development Public Company Limited (ITD) has been awarded two projects
namely Supply, Installation, Testing and Commissioning of Track Work
and Installation of Third Rail System for Bangalore Metro Rail
Corporation Limited valued at Rs. 33,184 Lakhs and Laying of the
Tallah-Palta Dedicated Transmission Line for Kolkata Municipal
Corporation valued at Rs. 18,739 Lakhs.
During the year under report a number of contracts were completed
including-
- Construction of Coal Berth at Chennai.
- Road Projects in the States of Madhya Pradesh, Haryana and Punjab.
- Construction of Civil and allied work for Marine Liquid Jetty at
Ennore Port.
- Various Piling and Civil Works in Andhra Pradesh, Assam, Bihar,
Haryana, Himachal Pradesh, Gujarat, Karnataka, Orissa and West Bengal.
With regard to paragraphs 5 vi(a) to 5 vi(d) of the Auditors report,
your Directors state that:
(a) The Company has recognized variation claims as revenue of Rs. 5,042
Lakhs till December 31, 2009, which are also included in the balance of
sundry debtors at December 31, 2009. These claims are disputed by the
customer. Out of this, claims amounting to Rs. 2,801 Lakhs are a
subject matter of arbitration. In respect of the balance variation
claims of Rs. 2,241 Lakhs the Company has received arbitration awards
in its favour which have been challenged by the customer. Considering
the legal advice from Companys counsel in the matter, the management
is reasonably confident of recovery of the amounts awarded.
(b) Sundry Debtors as at December 31, 2009 include Rs. 3,384 Lakhs
representing interim work bills for work done which have not been
certified by customers beyond normal periods of certification provided
in the respective contracts. The Management is reasonably confident of
the certification and recovery of the same progressively on these
contracts based on past experience of the Company, assessment of work
done and the fact that these are not disputed by the customer.
(c) Sundry Debtors as at December 31, 2009 include an amount of Rs.
1,225 Lakhs, recognized as income in earlier years. Based on the
payment schedule originally agreed with the customer, the above
mentioned claim was expected to be received by the Company over a
period of time commencing from financial year 2008/2009. No amounts
have been received by the Company till date and further rescheduling of
the payment which was is in progress at 31 st December, 2008 has not
yet been finalised. The management is in advanced stage of discussion
with the client and confident of recovering the amount due.
ISO 9001:2008, ISO 14001:2004 AND OHSAS-18001:2007
Your Company has established at all offices, project sites and depots
Quality Management System (QMS) conforming to ISO 9001:2008,
Environmental Management System (EMS) conforming to ISO 14001:2004 and
Occupational Health and Safety Management System (OHSMS) conforming to
OHSAS 18001:2007.
During the year the accreditation has been audited and re-certified by
Det Norske Veritas (DNV).
Your Company is amongst a few construction companies who have
established Integrated Management System comprising QMS, EMS and OHSMS
covering all project sites.
OUTLOOK
Last year your Company consolidated its position in the construction
market with its first order from Airport Authority of India for the
modernization of Kolkata Airport and repeat order from Delhi Metro Rail
Corporation Limited. This year will be remembered for the award of the
first project for micro-tunneling work for Kolkata Municipal
Corporation and track laying work for Bangalore Metro Rail Corporation
Limited, in joint venture with the parent company.
Your Companys presence in other sectors such as irrigation and marine
sectors has been further cemented by the award of prestigious project
of Investigation, design and execution of water conveyor system for
Government of Andhra Pradesh and Construction of Civil works, services
and allied works for Modernisation at Kolkata for Garden Reach
Shipbuilders and Engineers Limited.
Your Directors are pleased to inform that during the first quarter of
2010, your Company, in joint venture with its parent has emerged as the
lowest bidder for a Rs. 90,863 Lakhs project for the Kolkata Metro Rail
Corporation Limited.
In view of positive outlook for the Indian economy, your Company is
reasonably optimistic for the years that lie ahead.
PARENT COMPANY
Italian-Thai Development Public Company Limited (ITD) is engaged in the
business of civil and infrastructure construction and development and
has been a major builder of Thailands infrastructure for over 50
years. It had an annual consolidated revenue for the year 2008 of
approximate Bant 42,855 million (about Rs. 6,043.50 Crores) which puts
it in the lead position amongst contractors in Thailand. In 2008, ITD
had a skilled work force of around 26,877 employees, including around
1,483 qualified engineers. An experienced in-house training division
provides its employees with continuous training in safety and
construction skills. ITDs main activities are buildings, industrial
plants, pipelines and utility works, highways, railways, bridges and
expressways, airports, ports and marine works, dams, tunnels and power
plants, mining, steel fabrication and telecommunications.
SUBSIDIARY COMPANY AND CONSOLIDATED FINANCIAL STATEMENT
A Statement pursuant to Section 212 of the Companies Act, 1956
containing the details of Companys subsidiary is attached.
As required under the Listing Agreements with the Stock Exchanges, a
Consolidated Financial Statements of the Company and its subsidiary are
attached. The Consolidated Financial Statements have been prepared in
accordance with Accounting Standards 21 and 27 issued by The Institute
of Chartered Accountants of India and show the financial resources,
assets, liabilities, income, profits and other details of the Company,
its subsidiary and its share in joint ventures.
The Company has been granted exemption for the year ended 31 st
December, 2009 by the Ministry of Corporate Affairs from attaching to
its Balance Sheet, the individual Annual Report of its Subsidiary
Company. As per the terms of Exemption Letter, a statement containing
brief financial details of the Companys Subsidiary for the year ended
31 st December, 2009 is included in the Annual Report. The Annual
accounts of the Subsidiary Company will be made available to any Member
of the Company seeking such information at any point of time and are
also available for inspection by any Member of the Company at the
Registered Office of the Company on any working day during business
hours.
RESEARCH AND DEVELOPMENT
The Company lays significant emphasis on improvements in methods and
processes in its areas of construction and operations. The Research &
Development Division of the Company continues to enjoy recognition by
the Department of Scientific and Industrial Research, Ministry of
Science and Technology, Government of India. The primary focus of
research is to continually refine the frequently used systems at our
project sites to derive optimization, reduction in the breakdowns and
improve effectiveness and efficiency of use.
PARTICULARS OF EMPLOYEES AND OTHER ADDITIONAL INFORMATION
Information as per Section 21 7(1 )(e) of the Companies Act, 1956, read
with the Companies (Disclosure of Particulars in the Report of the
Board of Directors) Rules, 1988 relating to the conversion of energy,
technology absorption, foreign exchange earnings and outgoings
respectively, is attached hereto and forms part of this Report.
Particulars of employees pursuant to Section 217(2A) of the Companies
Act, 1956, read with the Companies (Particulars of Employees) Rules,
1975, as amended, is set out in the annexure and form part of this
Report. However, in pursuance of Section 219(1 )(b)(iv) of the
Companies Act, 1956, the Report and Accounts is being sent to all the
Members of the Company excluding the aforesaid information and the said
particulars will be made available on request and also made available
for inspection at the Registered Office of the Company. Any Member
interested in obtaining such particulars may write to the Company
Secretary at the Registered Office of the Company.
DIRECTORS RESPONSIBILITY STATEMENT
The Board of Directors state that in the preparation of the annual
accounts the applicable accounting standards have been followed and
proper explanations have been provided for material departures,
wherever applicable. The Board of Directors also confirm that the
Directors have selected such accounting policies and applied them
consistently and made judgements and estimates that are reasonable and
prudent so as to give a true and fair view of the state of affairs of
the Company at the end of the financial year and of the profit of the
Company for the year under report. It is further stated that the Board
of Directors have taken proper and sufficient care for the maintenance
of adequate accounting records in accordance with the provisions of the
Companies Act for safeguarding the assets of the Company and for
preventing and detecting fraud and other irregularities. It is further
confirmed that the Directors have prepared the annual accounts on a
going concern basis.
DEPOSITORY SYSTEM
It is mandatory that the shares of the Company are traded in electronic
form. The Company has entered into Agreements with both the
depositories ie. National Securities Depository Limited (NSDL) and
Central Depository Services (India) Limited (CDSL).
CORPORATE GOVERNANCE
Pursuant to Clause 49 of the Listing Agreement with the Stock
Exchanges, Reports on Management Discussion and Analysis and on
Corporate Governance alongwith a certificate of compliance from the
Auditors are attached hereto and form part of this Report.
DIRECTORS
Mr. S. Mukundan resigned as Director and Deputy Managing Director with
effect from 12th June, 2009. The Directors place on record their
sincere appreciation of the long and meritorious service rendered by
Mr. Mukundan during his tenure as Director of the Company.
Mr. S.S. Singh retired as Managing Director of the Company with effect
from 1st January, 2010. Mr. Singh was the Managing Director for the
past 9 years, an office he held with distinction through a difficult
period. The Directors place on record their sincere appreciation of the
long and meritorious service rendered by Mr. Singh to the Company as
Managing Director.
At a meeting of the Board of Directors held on 29th July, 2009, Mr.
Adun Saraban was appointed as an Additional Director designated as
President and Managing Director (Designate) for the period 12th August,
2009 to 31st December, 2009 and as Managing Director with effect from
1st January, 2010. Mr. Saraban holds office as Director upto the date
of this Annual General Meeting and, being eligible, offers himself for
re-appointment.
Mr. D.E. Udwadia and Mr. Premchai Karnasuta retire by rotation and,
being eligible, offer themselves for re-appointment.
AUDITORS
The retiring Auditors, Messrs S.R. Batliboi & Associates, Chartered
Accountants, Mumbai, offer themselves for re-appointment.
INDUSTRIAL RELATIONS
Relations with staff and labour remained peaceful and cordial during
the year under review.
ACKNOWLEDGEMENT
The Directors thank all employees for their contribution and the
shareholders, customers and bankers for their continued support.
For and on behalf of the Board
Mumbai Premchai Karnasuta
4th March, 2010 Chairman