Mar 31, 2018
Dear Member(s),
The Directors have great pleasure in presenting the Thirty Third (33rd) Annual Report on the business and operations of your Company together with Audited financial statement of the Company including consolidated financial statement of the Company for the financial year ended March 31,2018 and the Auditorsâ report thereon.
FINANCIAL SUMMARY AND HIGHLIGHTS
(Amount in lakhs) |
||||
Particulars |
Standalone |
Consolidated |
||
2017 -18 |
2016 -17 |
2017 -18 |
2016 -17 |
|
Total Revenue |
7306.71 |
7963.74 |
7727.76 |
8373.86 |
Expenditure |
4505.81 |
3810.90 |
4850.88 |
4149.35 |
EBITDA |
2800.89 |
4152.83 |
2876.88 |
4224.51 |
Interest |
1969.29 |
2079.56 |
1969.29 |
2079.57 |
Depreciation |
158.46 |
210.34 |
206.01 |
271.85 |
EBT or Profit/(Loss) before Tax |
673.15 |
1862.93 |
701.58 |
1873.09 |
Tax |
||||
Current tax |
147.89 |
369.96 |
154.64 |
378.78 |
Defferred tax |
-62.39 |
-74.66 |
-52.22 |
-78.71 |
EAT or Profit /(Loss) after tax |
587.65 |
1567.63 |
599.17 |
1573.02 |
ADD: Other Comprehensive Income |
4.66 |
-3.35 |
5.63 |
-3.62 |
LESS: Non - Controlling Interest |
0.00 |
0.00 |
0.09 |
0.05 |
Total Comprehensive Income |
592.31 |
1564.28 |
604.71 |
1569.35 |
ADD: Balance Brought from PY |
11473.99 |
10397.16 |
12131.98 |
11050.08 |
Available for appropriation |
12066.30 |
11961.44 |
12736.69 |
12619.43 |
LESS: Dividend |
81.00 |
405.00 |
81.00 |
405.00 |
LESS: Tax on Dividend |
16.49 |
82.45 |
16.49 |
82.45 |
Balance Carried to Balance sheet |
11968.81 |
11473.99 |
12639.20 |
12131.98 |
BUSINESS OUTLOOK FOR LANCOR HOLDINGS LIMITED, ITS SUBSIDIARIES AND ASSOCIATE BUSINESS OVERVIEW
There has been no change in the nature of business of the Company.
Your Company has incorporated a new company on April 12, 2018 in the name and style,â Lancor South Chennai Developments Limitedâ as a wholly owned subsidiary for the development of projects at South Chennai.
MATERIAL CHANGES AND COMMITMENTS, IF ANY, AFFECTING THE FINANCIAL POSITION BETWEEN THE END OF THE FINANCIAL YEAR AND THE DATE OF REPORT:
There has been no material changes and commitment effecting the financial position of the Company between the end of the financial year and the date of the report except newly incorporated company.
FINANCIAL OVERVIEW
STANDALONE
During the financial year 2017-18, the Company has on a standalone basis, registered total revenues of Rs.73,06,70,618/- as compared to Rs. 79,63,73,617/- in the previous year. The EBIT for the previous year was Rs. 18,62,92,861 whereas the current FY EBIT is Rs.6,73,14,514, the last year net profit was Rs. 15,67,63,243/whereas the current year net profit is Rs.5,87,65,102/-
CONSOLIDATED
During the financial year 2017-18, the Company has on a consolidated basis, registered total revenues of Rs. 77,27,75,594/- as compared to Rs. 83,73,86,530/- in the previous year. The total expenditure of Rs. 70,26,16,561/- for the FY 2017 - 18 as against the Previous FY Rs. 65,00,77,153, the last year net profit was Rs. 15,73,02,162/- whereas the current year net profit is Rs. 5,99,17,233.
DIVIDEND:
The Board of Directors at its meeting held on May 14, 2018 recommended a final dividend of 0.20 paise per equity share(i.e.,10% on Equity Paid up capital), which is subject to the approval of the members at the ensuing Annual General Meeting of the Company for the financial year ended March 31, 2018.
The total dividend is estimated for the current year (excluding dividend distribution tax) is Rs.81 lakhs.
CORPORATE SOCIAL RESPONSIBILITY (CSR)
During the year, your Company has transferred Rs.34.89 lakhs to Lancor Foundation towards meeting of its objective.
Your Company through âLancor Foundationâ has started initiative with an objective of not only to impart training to the youth at the rural area and also to make them employable.
Further, Lancor Foundation had identified a land situated at Sriperumbudur and paid an advance amount of Rs. 40 Lakhs towards purchase of land to construct skill training centre to promote education and employment enhancing vocation skills in pursuant to the Schedule VII of the Companies Act 2013.
The Companyâs contribution towards CSR is given in detail as Annexure - C
BOARD OF DIRECTORS AND ITS COMMITTEES
A. Composition of the Board of Directors
The Board of Directors of the Company comprises of Non Executive Chairman who is a promoter of the Company along with him other Five Non-Executive Directors, including three Independent Directors. The Company has one Women Director who is also a Non Executive. The composition of the Board of Directors is in compliance with regulation 17(1)(b) of SEBI (Listing Obligations and Disclosure Obligations) Regulations 2015 and Section 149 of the Companies Act, 2013.
The Company has received necessary declarations from the Independent Directors under Section 149(7) of the Companies Act, 2013 stating that they meet the criteria of independence as specified in Section 149(6) of the Companies Act, 2013 and as per Regulation of the SEBI (Listing Obligations and Disclosures Requirements) Regulations, 2015.
B. Meetings
The Board of Directors duly met seven (07) times during the year, the details of which are given in the Corporate Governance report that forms part of this annual report. In respect of all such meetings proper notices were given and the proceedings were properly recorded and signed in the minutesâ book maintained for the purpose. The intervening gap between any two meetings was within the period prescribed under the Companies Act, 2013.
In accordance with the provisions of the Companies Act, 2013, a separate meeting of the Independent Directors of the Company was held on February 07, 2018.
C. Re-appointment of Director Retiring by Rotation (1/3 as per AOA no.100)
In terms of Section 152 of the Companies Act, 2013, Mr. R.V. Sekhar (DIN-00259129) liable to retire by rotation at the ensuing Annual General Meeting and being eligible, offers himself for re-appointment. The Board of Directors based on the recommendation of Nomination and Remuneration Committee, has recommended the re-appointment of Mr. R.V. Sekhar (DIN-00259129) retiring by rotation.
Brief resume of the Director proposed to be re-appointed have been provided in the note to the Notice convening the Annual General Meeting. Specific information about the nature of his expertise in specific functional areas and the names of the companies in which he hold Directorship and membership / chairmanship of the Board Committees as per regulation 26 (4) of SEBI (Listing Obligations and Disclosure Obligations) Regulations, 2015 have also been included.
D. Committees of the Board
The constitution and terms of reference of Audit Committee, Nomination and Remuneration Committee, Stakeholders Relationship Committee and Risk Management Committee were also aligned with the requirements of regulations 18 to 22 of SEBI (Listing Obligations and Disclosure Obligations) Regulations, 2015 and the Companies Act, 2013. The Company has also constituted Corporate Social Responsibility Committee.
A detailed note on the Committees of the Board of Directors is given in the Corporate Governance Report forming part of the Annual Report.
E. Performance Evaluation
Section 134 of the Companies Act, 2013 states that formal evaluation needs to be made by the Board, of its own performance and that of its committees and the individual Directors. Schedule IV of the Companies Act, 2013 and regulation 17(10) of SEBI (Listing Obligations and Disclosure Obligations) Regulations, 2015 states that the performance evaluation of Independent Directors shall be done by the entire Board of Directors excluding the Directors being evaluated.
Pursuant to the provisions of section 134 (3)(p) of the Companies Act, 2013 and SEBI (LODR) Regulations, 2015, the Board has carried out an evaluation of its own performance, the Directors individually as well as the evaluation of the working of its Committees. The manner in which the evaluation has been carried out has been explained in the Corporate Governance Report. None of the Independent Directors is due for re-appointment.
F. Directors'' Responsibility Statement
In terms of the requirements of Section 134(5) of the Companies Act, 2013, we, on behalf of the Board of Directors, hereby confirm that:
a) in the preparation of the annual accounts, the applicable accounting standards had been followed along with proper explanation relating to material departures;
b) the Directors had 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;
c) the Directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;
d) the Directors had prepared the annual accounts on a going concern basis; and
e) the Directors had laid down internal financial controls to be followed by the Company and such internal financial controls are adequate and were operating effectively.
f) the Directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating.
G. Changes in Directors and Key Managerial Personnel
There are no changes in the directorship as well as in the Key Managerial Personnel during the period of the report.
H. Changes in Subsidiaries, Joint Ventures and Associates
The company has incorporated a new company in the name and style, "Lancor South Chennai Development Limited" on April 12, 2018 with the objective to promote and develop the properties located at South Chennai.
I. Significant or Material Orders Passed by Regulators / Courts
In the matter of the Commercial Property, "Menon Eternity",The arbitrator had issued an award dated March 16, 2016, invalidating the sale deeds registered in favour of the Company. The single bench of the Hon''ble High court of Madras by its judgment delivered on December 23, 2016, has set aside the Award of the Arbitrator, with regard to the invalidation of the Sale deeds and hence confirmed the title in favour of the Company.Subsequently, the land owners have gone on appeal before the division bench in the Hon''ble High Court of Madras which is being contested by the Company.
There were no any other significant or material orders passed by the Regulators or Courts or Tribunals impacting the going concern status and Company''s operations in future.
J. Declaration by Independent Directors
The Company has received necessary declaration from each independent director under Section 149 (7) of the Companies Act 2013, that they meet the criteria of independence laid down in Section 149(6) of the Companies Act 2013 and regulation 25 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015.
K. Details in respect of Frauds
The Company'' auditor report does not have any statement on suspected fraud in the company operations to explain as per Sec. 134(3)(ca) of the Companies Act 2013.
Audit Related Matters
A. Audit Committee
Pursuant to regulation 18 of SEBI (LODR) Regulations 2015 and the provision of Section 177(8) read with Rule 6 of the companies (Meeting of Board and its Powers) Rules 2014 the Company has duly constituted a qualified and independent Audit Committee. The Audit Committee of the Board consisting of three "Non-Executive - Independent Directorsâ as members having adequate financial and accounting knowledge. The composition, procedures, powers and role/functions of the audit committee and its terms of reference are set out in the Corporate Governance Report forming part of the Boards Report.
During the period under review, the suggestions put forth by the Audit Committee were duly considered and accepted by the Board of Directors. There were no instances of non-acceptance of such recommendations.
B. Statutory Auditors
The Company at its 32nd Annual General Meeting held on September 22, 2017 had appointed M/s. Nayan Parikh & Co., (ICAI Firm Registration No.:107023W), Chartered Accountants as the Statutory Auditor for a term of one year.
Pursuant to Section 139 (2)(b) of the Companies Act 2013, a company can appoint an audit firm as auditor not more than two terms of five consecutive years.
Since M/s. Nayan Parikh & Co., (ICAI Firm Registration No.:107023W), Chartered Accountants had already been appointed as Statutory Auditors for a term of one year and subject to the approval of the Members, the Audit Committee and Board of Directors of the Company has recommended to appoint of M/s. Nayan Parikh & Co., (ICAI Firm Registration No.:107023W), Chartered Accountants as the Statutory Auditor of the Company for one more term consists of five consective years.
Accordingly, the Board recommends the resolution in relation to appointment of Statutory Auditor, for the approval by the shareholders of the Company
C. Secretarial Auditors
Pursuant to Section 204 of the Companies Act, 2013 and the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, your Company has appointed M/s. Rabi Narayan and Associates, Company Secretaries-in-Practice to undertake the Secretarial Audit of the Company. The Secretarial Audit report in Form No.MR.3 for Financial year 2017-18 is annexed herewith, as Annexure- A.
There are no qualifications or adverse remarks in the Secretarial Audit Report which require any explanation from the Board of Directors.
D. Cost Auditor
As per Sec. 148 (6) of Companies Act 2013 and rule 6(6) of the Companies (Cost records and audit) Rules, 2014 the applicability of Cost audit is based on overall annual turnover of the company from all its products and services during the immediately preceding financial year of rupees one hundred crore or more and the aggregate turnover of the individual product or products or service or services for which cost records are required to be maintained under rule 3 is Rupees thirty five crore or more.
Since, your company annual turnover does not exceed the threshold limit as mentioned above; hence appointment of cost auditor is not applicable for the FY 2017 -18.
E. Internal Financial Controls
There are adequate internal financial controls in place with reference to the financial statements. During the year under review, these controls were evaluated and no significant weakness was identified either in the design or operation of the controls.
F. Internal Audit
The board at its meeting held on May 14, 2018 appointed M/s. NVSRS & Associates, Chartered Accountants as internal auditor for the Financial Year 2018 - 19 based on the recommendation of Audit Committee.
Policy Matters
A. Nomination and Remuneration Policy
The Company recognizes and embraces the benefits of having a diverse Board of Directors and sees increasing diversity at the Board level as an essential element in maintaining a competitive advantage in the complex business that it operates. It is recognized that a Board comprised of appropriately qualified people with wide range of experience relevant to the business of the Company is important to achieve effective corporate governance and sustained commercial success of the Company. At a minimum, the Board of the Company shall consist of at least one woman Director. All Board appointments are made on merit, in the context of the skills, experience, independence, knowledge and integrity which the Board as a whole requires to be effective.
The Nomination and Remuneration Committee of the Directors has formulated a Nomination and Remuneration Policy containing the criteria for determining qualifications, positive attributes and independence of a Director and policy relating to the remuneration for the Directors, key managerial personnel and senior management personnel of the Company. The Nomination and Remuneration Policy is available on the website of the Company at http://www.lancor.in/investorsrela-tions-download-pol.php and relevant extracts from the Policy are reproduced in Annexure B to this report.
B. Risk Management Framework
Pursuant to section 134 (3)(n) of the Companies Act, 2013 & Regulation 21 of SEBI(Listing Obligations and Disclosures Requirements) Regulations 2015, the Board of Directors of the Company has constituted a Risk Management Committee which is entrusted with the task of monitoring and reviewing the risk management plan and procedures of the Company. The Company has developed and implemented a risk management framework detailing the various risks faced by the Company and methods and procedures for identification, monitoring and mitigation of such risks. The details of the committee and its terms of reference are set out in the Corporate Governance Report forming part of the Boards report. At present the Company has not identified any element of risk which may threaten the existence of the Company.
C. Corporate Social Responsibility Policy
The Corporate Social Responsibility Policy, as formulated by the Corporate Social Responsibility Committee and approved by the Board of Directors is available on the website of the Company at http://www.lancor.in/investors/
As reported in the last Annual Report the Company has created a registered Trust under the name and style of Lancor Foundation, a non- profit Trust to pursue the corporate social responsibility policy. The Foundation works closely with and supports the Board and the committee in identifying and implementing CSR activities. The Foundation also assists the Board and the committee in reporting progress of deployed initiatives and in making appropriate disclosures on a periodic basis.
In terms of Section 134 of the Companies Act, 2013 read with the Companies (Corporate Social Responsibility Policy) Rules, 2014, Rule 9 of the Companies (Accounts) Rules 2014 and Rule 9 of the Companies (Corporate Social Responsibility Policy) Rules, 2014 the annual report on Corporate Social Responsibility activities of the Company is given in Annexure - C to this report.
D. Vigil Mechanism
Pursuant to regulation 22 of SEBI (Listing Obligations and Disclosures Requirements) Regulations, 2015 and the provision of Section 177(9) read with Rule 7 of the companies (Meeting of Board and its Powers) Rules 2014 the Company has duly established a vigil mechanism for stakeholders, Directors and employees to report genuine concerns about unethical behavior, actual or suspected fraud or violation of the Company''s code of conduct or ethics policy. The Audit Committee of the Company oversees the vigil mechanism. The Company affirms that no personnel have been denied direct access to the Chairman of the Audit Committee.
The Policy also provides for adequate protection to the whistle blower against victimization or discriminatory practices. The Policy is available on the website of the Company at http://www.lancor.in/investors/
E. Sexual Harassment Policy
Your Company follows the principle of equal opportunities and is committed to creating a healthy working environment that enables employees to work without fear of prejudice, gender bias and sexual harassment. The Company also believes that all employees of the Company, have the right to be treated with dignity. Sexual harassment at the work place or other than work place if involving employees is a grave offence and is, therefore, punishable.
The Company has in place an Anti Sexual Harassment Policy in line with the requirements of The Sexual Harassment of Women at the Workplace (Prevention, Prohibition & Redressal) Act, 2013. Internal Complaints Committee (ICC) has been set up to redress complaints received regarding sexual harassment.
A Committee has been constituted by the Management to consider and redress complaints of Sexual Harassment.
The Policy is available on the website of the Company at http:// www.lancor.in/investors/
OTHER MATTERS
A. Debentures
During the year under review, the Company has not issued any debentures. As on date, the Company does not have any outstanding debentures.
B. Bonus Shares:
During the year under review, the Company has not issued any bonus shares.
C. Borrowings
The Company has outstanding borrowings of Rs. 160,13,79,481/- during the financial Year ended March 31, 2018.
D. Deposits
The Company has not accepted any deposit in terms of Chapter V of the Companies Act, 2013 read with the Companies (Acceptance of Deposit) Rules, 2014, during the year under review and as such, no amount on account of principal or interest on public deposits was outstanding as of the balance sheet date.
E. Transfer to Investor Education and Protection Fund
As required under the provisions of Sections 124(5) and 125(2)(c) of the Companies Act, 2013, both interim and final dividends pertaining to the financial year 2009-10 which were lying unclaimed with the Company for the past seven years was transferred to the Investor Education and Protection Fund during the Financial Year 2017-18.
The details of unclaimed dividend transferred to the Investor Education and Protection Fund has been detailed in the Corporate Governance Report forming part of the Annual Report, which also available in the companyâs website.
F. Human Resources
Employee relation continues to be cordial and harmonious at all levels and in all divisions of the Company. The Board of Directors would like to express their sincere appreciation to all the employees for their continued hard work and dedication.
As a part of the policy for Prevention of Sexual Harassment in the organization, the Company has in place, an Internal Complaints Committee for prevention and redressal of complaints of sexual harassment of women at work place in accordance with Sexual Harassment of Women at Workplace (Prevention, Prohibition, and Redressal) Act, 2013 and relevant rules thereunder. No complaints were received by the Committee during the period under review.
Number of employees as on March 31, 2018 was 62, which include 10 women employees.
The table containing the names and other particulars of employees in accordance with the provisions of Section 197(12) of the Companies Act, 2013, read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, is appended as Annexure - D to the Board''s Report.
F. Credit Rating:
CRISIL has re-affirmed its rating of âBBB - Stableâ in respect of companyâs long term bank loans.
G. Code of Corporate Governance
In compliance with the requirement of regulations 24 to 27 of SEBI (Listing Obligations and Disclosures Requirements) Regulations, 2015, a detailed report on Corporate Governance is annexed to this report as Annexure â H together a Certificate from Mis. Rabi Narayanan & Associates , Company Secretaries-in-Practice, affirming compliance with the said Code.
H. Code of Conduct
In compliance with requirement of regulations 17 of SEB I (Listing Obligation s and Disclosures Requirements) Regulations , 2015 an d Companies Act , 2013 the Company ha s laid down a Cod e of Conduct (Code) for all the Board Members and Senior Management Personnel of the Company. The Code is also posted on the Website of the Company http://www.lancor.in/investors/. All the Board Members and Senior Management Personnel have affirmed their compliance with the Code for the financial year ended March 31, 2018. A declaration to this effect signed by Mrs.Mallika Ravi, the Chief Executive Officer, of the Company forms part of this report.
I. Management Discussion and Analysis Report
In accordance with the requirement of the Listing regulations, the Management Discussion and Analysis Report titled as Management Report is presented in a separate section of the Annual Report.
J. Extract of Annual Return
In terms of Section 134 (3) of the Companies Act, 2013 the Extract of the Annual Return of the Company for the Financial Year 2017 -18 is available in our company''s website.
Please click the following link to download the same. www.lancor.in
K. Particulars of Loans, Guarantees and Investments
In terms of Section 134 of the Companies Act, 2013, the particulars of loans, guarantees and investments given by the Company under Section 186 of the Companies Act, 2013 is detailed in (Note No.2.13) Notes to Standalone Financial Statements.
L. Related Party Transactions
All related party transactions that were entered into during the financial year were at armâs length basis and were in the ordinary course of business. All related party transactions are placed before the Audit Committee as also the Board for approval on quarterly basis, for the transactions which are of a foreseen and repetitive nature. The Board of Directors of the Company has , with the recommendation of the Audit Committee adopted a policy to regulate the transactions between the Company an d its related parties in compliance with the applicable provisions of the Companies Act, 2013 and rules made there under and the Listing Agreement.
During the year, the Company has not entered into any contract / arrangement / transaction with a related party which can be considered as material in terms of the policy on related party transactions laid down by the Board of Directors. These Policies have been uploaded on the website of the Company at http://www.lancor.in/investors/ the related party transactions undertaken during the Financial Year 2017 - 18 are detailed in Notes (Note No.4.09) to Accounts of the Financial Statements.
Particulars of contracts or arrangements with related parties referred to in section 188(1) of the Companies Act, 2013 in form AOC-2 is appended as Annexure- F to the Board''s Report.
M. Conservation of Energy, Technology Absorption and Foreign Exchange Earnings and Outgo
Lancor Holdings Limited does not carry on any manufacturing activity and accordingly the provision to furnish information as per section 134(3)(m) of the Companies Act, 2013 read with the Rule 8(2) of the Companies (Accounts) Rules, 2014, particulars relating to (A) Conservation of energy and (B) Technology Absorption is not applicable.
Foreign Exchange Earnings and Outgo
Foreign Exchange Earnings : Nil
Foreign Exchange Outgo : Nil
N. Financial Position and Performance of Subsidiaries, Joint Ventures and Associates
As on March 31,2018, the Company has two subsidiaries and one Joint Venture viz., Lancor Egatoor Developments Limited, Lancor Maintenance & Services Limited and a Joint Venture, Central Park West Venture.
There has been no material change in the nature of the businesses of the subsidiaries. The consolidated financial statement has also been prepared in accordance with the relevant accounting standards and a separate statement containing the salient features of the financial statement of its subsidiaries and associate in form AOC - 1 is attached along with the financial statement of the Company as Annexure - F
As per the provisions of Section 136 of the Companies Act, 2013, the Company has placed separate audited accounts of its subsidiaries on its website http://www.lancor.in/investors/ and copy of separate audited financial statements of its subsidiaries will be provided to the shareholders at their request.
O. Green initiatives
Electronic copies of the Annual Report 2017-18 and Notice of the Thirty Third Annual General Meeting are sent to all members whose email addresses are registered with the Company/ Depository Participant(s). For members who have not registered their email addresses, physical copies of the Annual Report 2018 and the Notice of the Thirty Third Annual General Meeting are sent in the permitted mode. Members requiring physical copies can send a request to the Company. Further, the soft copy of the Annual Report (in pdf format) is also available on our website (www.lancor.in)
Pursuant to Section 108 of the Companies Act, 2013, Rule 20 of the Companies (Management and Administration) Rules, 2014, and Listing Regulations, the Company is providing e-voting facility to all members to enable them to cast their votes electronically on all resolutions set forth in the notice. The instructions for e-voting are provided in the notice.
P. Details in respect of frauds reported by auditors under sub section (12) of section 143 other than those which are reportable to the Central Government
There are no such fraud required to be reported under section 143(12) of the companies Act, 2013 Q. Additional Information to Shareholders
All important and pertinent investor information such as financial results, investor presentations, press releases, new launches and project updates are made available on the Companyâs website (www.lancor.in) on a regular basis.
ACKNOWLEDGEMENT
The Directors would like to place on record their sincere appreciation to the Companyâs customers, vendors, and bankers, viz., The Catholic Syrian Bank Limited, The Axis Bank Limited, The City Union Bank Limited, The Axis Finance Limited and The State Bank of India for their continued support to the Company during the year. The Directors also wish to acknowledge the contribution made by employees at all levels for steering the growth of the organization. We thank the Government of India, the state government and other government agencies for their assistance and cooperation and look forward to their continued support in future.
Finally, the Board would like to express its gratitude to the members for their continued trust, cooperation and support.
For and on behalf of the Board of Directors of
LANCOR HOLDINGS LIMITED
Place : Chennai Sd/- Sd/-
Date : 13/08/2018 R V Shekar R SANKARANARAYANAN
Director Director
DN:00259129 DIN:00172202
Mar 31, 2016
Dear Member(s),
The Directors have great pleasure in presenting the 31st Annual Report on the business and operations of your Company together with Audited financial statement of the Company including consolidated financial statement of the Company for the financial year ended 31st March 2016 and the Auditorsâ report thereon.
FINANCIAL SUMMARY AND HIGHLIGHTS
(Amount in Rs. Lakhs)
Particulars |
Standalone |
Consolidated |
||
2015 - 2016 |
2014 - 2015 |
2015 - 2016 |
2014 - 2015 |
|
Total Revenue |
8397.48 |
10,736.23 |
9627.45 |
15126.19 |
Expenditure |
5349.88 |
6,574.22 |
5873.87 |
9741.04 |
FRITDA |
3047.60 |
4,162.01 |
3753.58 |
5385.15 |
Interest |
1616.20 |
2,077.52 |
2125.34 |
2387.21 |
Depreciation |
234.47 |
310.12 |
249.70 |
326.60 |
Profit / (Loss) before extraordinary items & tax |
1196.92 |
2,178.66 |
1378.53 |
2650.55 |
Less: Extraordinary items |
0.00 |
0.00 |
9.67 |
0.00 |
Profit / (Loss) after extraordinary items before tax |
1196.92 |
2,178.66 |
1368.86 |
2650.55 |
Current tax |
339.79 |
713.13 |
433.37 |
958.98 |
Deferred tax |
33.28 |
(13.91) |
24.65 |
(14.97) |
(Excess) / short provision of Tax earlier year |
(191.29) |
3.58 |
(187.42) |
22.36 |
Profit / (Loss) after Tax |
1015.14 |
1,475.86 |
1098.26 |
1684.19 |
Minority Interest |
0.00 |
0.00 |
0.40 |
0.37 |
Add : Balance brought forward from previous year (includes Lancor Projects Ltd) |
7727.08 |
8,671.64 |
8609.93 |
8985.21 |
Less : Prior year adjustments |
0.00 |
20.79 |
0.00 |
20.79 |
Available for appropriation |
8742.22 |
8,374.26 |
9707.79 |
9,267.04 |
Dividend |
405.00 |
405.00 |
405.00 |
405.00 |
Tax on dividend |
82.45 |
94.60 |
82.45 |
94.60 |
Transfer to General Reserve |
101.52 |
147.59 |
101.51 |
147.59 |
Balance Carried to Balance Sheet |
8153.26 |
7,727.08 |
9118.84 |
8609.93 |
BUSINESS OUTLOOK FOR LANCOR HOLDINGS LIMITED, ITS SUBSIDIARIES AND ASSOCIATES BUSINESS OVERVIEW
There has been no material change in the nature of business of the company
The Real Estate sector which has been suffering much pain in the last 3 years is yet to see a recovery. The buyers are still delaying their decisions and the sector awaits the return of customers and investors. The home prices have been under tremendous pressure than before as the customers are still not entering the market. As per data, there was an accumulated stock of 7 lakhs units across India by September 2015. There has been mispricing and mis-design of project in many places. Your Company recognizes this position and has designed its TCP-Lake Front Phase II, OMR project with apartments of average sizes starting from 850 sft with a ticket size of above Rs.53 lakhs. The MSB panel approval for TCP-Lake Front Phase II has been obtained and the project will be launched in the next 2 months. As against 279 apartments that were reported in the last report, there will be 378 apartments as the sizes of the apartments are made more attractive and affordable.
The commercial office space has been the only saving grace where vacancy levels are falling down. The actual trickledown effect of many reforms and policies announced over the last two years by the Central Government is yet to see its effects on ground.
Your company in order to de-leverage your balance sheet obtained the shareholders approval and monetized the land in Potheri and Vallancheri of 6.44 acres for Rs.57.31 Crores and reduced the debt to Rs.160.51 Crores as on 31.07.2016 at the group level.
As on 31.07.2016, the debt equity ratio of your Company at the Group level is 1.14:1.
Your Company has launched an Innovative Scheme titled âGRIHA (Guaranteed Rental Income and Home Appreciation scheme), under which the buyer gets rental guarantee for the apartment purchased at 4.99% yield and is further assured of capital appreciation of 12% at the end of 3 years. The initial response of the scheme has been positive.
The construction of G block in Lumina has been completed and your company is making efforts to sell its inventories in G block under the GRIHA Scheme.
The few units which are left in Townsville, Town & Country at Sriperumbudur, TCP-Lake Front at Sholinganallur are also offered under the GRIHA Scheme.
The countryâs first auto rail hub in Walajabad should give a boost to realty sector in and around Sriperumbudur. Your Companyâs Town & Country and Townsville project in Sriperumbudur will be benefitted by this. The talks are on for revival of Fox Conn factory in Sriperumbudur, which would also provide impetus to Sriperumbudur and to your projects in Sriperumbudur, when it happens.
MATERIAL CHANGES AND COMMITMENTS, IF ANY, AFFECTING THE FINANCIAL POSITION BETWEEN THE END OF THE FINANCIAL YEAR AND THE DATE OF REPORT:
The Board, in its meeting held on 02nd May 2016, considered and recommended approval for (1) Sale / disposal of Immovable Properties of the Company comprising of Vacant land admeasuring aggregating in all 6.44 acres located on GST road in Vallancheri and Potheri Villages, Chengalpet, Kancheepuram District, Tamilnadu and Commercial Properties aggregating to (i) a total extent of 22,127 sqft of super built up area in a building constructed by the Company on Dr.Radhakrishnan Salai, Mylapore, Chennai, 600004, (ii) 4th Floor of a building in Kasturibai Nagar, Adayar, Chennai constructed by the Company admeasuring an extent of 6,122 sq ft of super built up area and (iii) 2nd and 3rd Floors admeasuring a total extent of 6,954 sq ft of super built up area, also constructed by the Company at GST Road, Alandur, Chennai, 600016, Tamilnadu, India which was later approved by the members by way of Postal Ballot, the result of which was declared on 02.05.2016.
Further, the Board, in its meeting held on 28 May 2016 appointed Dr. V. Rajesh as Company Secretary and Compliance Officer due to resignation of existing Company Secretary and Compliance Officer Mr. Pradeep Kumar Nath.
Apart from these, there has been no other material change and commitment effecting the financial position of the Company between the end of the financial year and the date of the report
FINANCIAL OVERVIEW STANDALONE
During the financial year 2015-16, the Company has on a standalone basis, registered total revenues of Rs.83,97,48,604 as compared to Rs.1,07,36,23,210/- in the previous year, a decrease of 21.78 % year on year. The Profit before Tax and Profit after Tax have declined by 45.06%, 31.22% respectively.
CONSOLIDATED
The consolidated revenues of the Company during the financial year 2015-16 was Rs.96,27,45,495 a decline of 36.35% from the previous year. The Profit before Tax was higher/(lower) by (48.36%) and Profit after Tax was higher/ (lower) (after considering minority interest) by (34.80%) as compared to the financial year 2014-15.
DIVIDEND:
The Board of Directors at its meeting held on 28th May 2016 recommended a final dividend of Rs.1 per equity share, subject to the approval of the members at the ensuing Annual General Meeting of the Company for the financial year ended 31st March 2016.
The total dividend appropriation (excluding dividend distribution tax) for the current year is Rs.4.05 crores
TRANSFER TO RESERVE:
Even though it is not mandatory on the part of the Company under section 123 of the Companies Act, 2013 read with the Companies (Declaration and Payment of Dividend) Rules, 2014 to transfer any specific percentage of its profits to the General reserves of the Company before the declaration of any dividend in any financial year, the Company proposes to transfer voluntarily a sum of Rs.1,01,51,479/- to the General Reserve.
CORPORATE SOCIAL RESPONSIBILITY (CSR)
During the year, your Company has spent the balance residual amount of Rs.45,600/- on the construction of toilets for school children in Sree Sayee Vivekananda Vidyalaya in North Chennai. The construction got completed and the school management recorded their acknowledgement on the services rendered by your Company in this regard.
The balance CSR amount of Rs.38,43,095/- (of 2% of the average net profit) has been transferred to Lancor Foundation for the establishment of Skill Development Centre in Sriperumbudur.
Your Company through âLancor Foundationâ has started initiative with an objective of not only to impart training to the youth and also to make them employable.
BOARD OF DIRECTORS AND ITS COMMITTEES
A. Composition of the Board of Directors
The Board of Directors of the Company comprises of Non Executive Chairman who is a promoter Director of the Company with other Five Non-Executive Directors, including Three Independent Directors. The Company also has one Women Director who is also Non Executive. The composition of the Board of Directors is in compliance with regulation 17(1)(b) of SEBI (Listing Obligations and Disclosures Requirements) Regulations 2015 and Section 149 of the Companies Act, 2013.
The Company has received necessary declarations from the Independent Directors under Section 149(7) of the Companies Act, 2013 stating that they meet the criteria of independence as specified in Section 149(6) of the Companies Act, 2013 and as per Regulation of the SEBI (Listing Obligations and Disclosures Requirements) Regulations, 2015.
B. Meetings
The Board of Directors duly met Six (06) times during the year, the details of which are given in the corporate Governance report that forms part of this annual report. In respect of all such meetings proper notices were given and the proceedings were properly recorded and signed in the minutes book maintained for the purpose. The intervening gap between any two meetings was within the period prescribed under the Companies Act,2013.
In accordance with the provisions of the Companies Act, 2013, a separate meeting of the Independent Directors of the Company was held on March 31, 2016.
C. Re-appointment of Director Retiring by Rotation
In terms of Section 152 of the Companies Act, 2013, Mr. S. Sridharan (DIN-01773791) liable to retire by rotation at the ensuing Annual General Meeting and being eligible, offers him selves for re-appointment. The Board of Directors based on the recommendation of Nomination, Remuneration and Governance Committee, has recommended the reappointment of Mr. S. Sridharan (DIN-01773791) retiring by rotation.
Brief resumes of the Directors proposed to be re-appointed have been provided in the note to the Notice convening the Annual General Meeting. Specific information about the nature of their expertise in specific functional areas and the names of the companies in which they hold Directorship and membership / chairmanship of the Board Committees as per regulation 26 (4) of SFBI (Listing Obligations and Disclosures Requirements) Regulations, 2015 have also been included.
D. Committees of the Board
The constitution and terms of reference of Audit Committee, Nomination and Remuneration Committee, Stakeholders Relationship Committee and Risk Management Committee were also aligned with the requirements of regulations 18 to 22 of SFBI (Listing Obligations and Disclosures Requirements) Regulations, 2015 and the Companies Act, 2013. The Company has also constituted Corporate Social Responsibility Committee.
A detailed note on the Committees of the Board of Directors is given in the Corporate Governance Report forming part of the Annual Report.
E. Performance Evaluation
Section 134 of the Companies Act, 2013 states that formal evaluation needs to be made by the Board, of its own performance and that of its committees and the individual Directors. Schedule IV of the Companies Act, 2013 and regulation 17(10) of SFBI (Listing Obligations and Disclosures Requirements) Regulations, 2015 states that the performance evaluation of Independent Directors shall be done by the entire Board of Directors excluding the Directors being evaluated.
Pursuant to the provisions of section 134 (3)(p) of the Companies Act, 2013 and SFBI (Listing Obligations and Disclosures Requirements) Regulations, 2015, the Board has carried out an evaluation of its own performance, the Directors individually as well as the evaluation of the working of its Committees. The manner in which the evaluation has been carried out has been explained in the Corporate Governance Report. None of the Independent Directors is due for re-appointment.
F. Directorsâ Responsibility Statement
In terms of the requirements of Section 134(5) of the Companies Act, 2013, we, on behalf of the Board of Directors, hereby confirm that:
a) in the preparation of the annual accounts, the applicable accounting standards had been followed along with proper explanation relating to material departures;
b) the Directors had 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;
c) the Directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;
d) the Directors had prepared the annual accounts on a going concern basis; and
e) the Directors had laid down internal financial controls to be followed by the Company and such internal financial controls are adequate and were operating effectively.
f) the Directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating.
G. Changes in Directors and Key Managerial Personnel
Mr. Harmohan H Sahni (DIN: 00046068) resigned as the Independent Director of the Company with effect from November 04, 2015. The Board places on record its gratitude for the services rendered by Mr. Harmohan H Sahni during his long association with the Company.
Mr. K.Srinivasan, Chief Financial Officer resigned as key managerial personnel of the Company with effect from June 22, 2016. The Board places on record its gratitude for the services rendered by him during his long association with the Company.
Mr. Pradeep Kumar Nath, was appointed as Compliance Officer and Company Secretary of the Company with effect from June 23, 2015, consequent to the resignation of Mr. P. Mahadevan, with effect from June 06, 2015. Further Dr. V. Rajesh was appointed as Compliance Officer and Company Secretary of the Company with effect from May 28, 2016 consequent to the resignation of Mr. Pradeep Kumar Nath, with effect from May 02, 2016.
H. Changes in Subsidiaries, Joint Ventures and Associates
Further, the Board, in its meeting held on 07th May 2015, subject to the approval of Honâble High Court of the Judicature at Madras, amalgamation of two of its wholly owned subsidiaries, namely Lancor Guduvanchery Developments Limited (Transferor Company-1) and Lancor Sriperumbudur Developments Limited (Transferor Company-2) in order to ensure better management of the both the companies as a single entity. The Company has obtained due approval from the concerned Regulators and the order of the Honâble High Court having Judicature at Madras is awaited.
I. Significant or Material Orders Passed by Regulators / Courts
In the matter of Arbitration between the Menons and the Company, the sole Arbitrator Justice (Retd.) Mr. K.P. Sivasubramaniam had passed the award on 16.03.2016. The Award of the Arbitrator had inter-alia cancelled the Sale Deeds dated 19.12.2008 registered in favour of the Company, in respect of 50% of undivided share of land. Pursuant to the said order, the Company had challenged the Award in the Honâble High Court of Madras, by filing a Section 34 Application under the Arbitration and Conciliation Act 1996. The Company has engaged M/s. Raman and Associates to defend the case. The hearing in this matter is under process
There were no any other significant or material orders passed by the Regulators or Courts or Tribunals impacting the going concern status and Companyâs operations in future.
J. Declaration by Independent Directors
The Company has received necessary declaration from each independent directors under Section 149(7) of the Companies Act, 2013, that they meets the criteria of independence laid down in Section 149(6) of the Companies Act, 2013 and Regulation 25 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Audit Related Matters
A. Audit Committee
Pursuant to clause 49 of the listing agreement / regulation 18 of SEBI (Listing Obligations and Disclosures Requirements) Regulations 2015 and the provision of Section 177(8) read with Rule 6 of the companies (Meeting of Board and its Powers) Rules 2014 the Company has duly constituted a qualified and independent Audit Committee. The Audit Committee of the Board consisting of three âNon-Executive - Independent Directorsâ as members having adequate financial and accounting knowledge. The composition, procedures, powers and role/functions of the audit committee and its terms of reference are set out in the Corporate Governance Report forming part of the Boards Report.
During the period under review, the suggestions put forth by the Audit Committee were duly considered and accepted by the Board of Directors. There were no instances of non-acceptance of such recommendations.
B. Statutory Auditors
At the Annual General Meeting of the Company held on December 26, 2014 M/s.G.M.Kapadia & Co., Chartered Accountants (Firm Registration Number 104767W) were reappointed as the Statutory Auditors of the Company for a period of 3 years, which is subject to annual ratification by the members of the Company. In terms of Section 139 of the Companies Act, 2013 read with the Companies (Audit and Auditors) Rules, 2014. Accordingly, the appointment of M/s.G.M.Kapadia & Co., Chartered Accountants, as the Statutory Auditors of the Company, is placed for ratification by the shareholders. In this regard, the Company has received a Certificate from the Auditors to the effect that if they are reappointed, it would be in accordance with the provisions of Section 141 of the Companies Act, 2013.
The Audit committee and the Board of Directors recommend the ratification of appointment of M/s.G.M.Kapadia & Co., Chartered Accountants as the Statutory Auditors and to fix their remuneration. The members may ratify the appointment of M/s.G.M.Kapadia & Co., Chartered Accountants as the Statutory Auditors of the Company for the financial year 2016-17.
There are no qualifications or adverse remarks in the Statutory Auditorsâ Report which require any explanation from the Board of Directors.
C. Secretarial Auditors
Pursuant to Section 204 of the Companies Act, 2013 and the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, your Company has appointed M/s. V.S. Sowrirajan & Associates, Company Secretar-ies-in-Practice to undertake the Secretarial Audit of the Company. The Secretarial Audit report in Form No.MR.3 for Financial year 2015-16 is annexed herewith, as Annexure- A.
There are no qualifications or adverse remarks in the Secretarial Audit Report which require any explanation from the Board of Directors.
D. Cost Auditors
Pursuant to the provisions of Section 148 of the Companies Act, 2013 read with notifications/ circulars issued by the Ministry of Corporate Affairs from time to time and as per the recommendation of the Audit Committee, the Board of Directors at their meeting dated 01.08.2016, appointed M/s.N.Sivashankaran & Co, Cost Accountants (Firm Regn No.100662), as Cost Auditor of the Company for financial year 2016-2017. In accordance with the provision of Section 148 of the Companies Act, 2013 read with Companies (Audit and Auditors) Rules, 2014, the remuneration payable to the Cost Auditor has to be ratified by the members of the Company and the remuneration proposed to be paid the Cost Auditors is placed for your ratification at the ensuing 31st Annual General Meeting. The Cost Audit Report for the financial year 2015-2016 will be filed within the period stipulated under Companies Act, 2013.
E. Internal Financial Controls
The Company has designed and implemented a process driven framework for Internal Financial Control (âIFCâ) within the meaning of the explanation to Section 134 (5) (e) of the Companies Act 2013.
For the year ended March 31 , 2016, the Board is of the opinion that the Company has sound IFC commensurate with the nature and size of its business operations and operating effectively and no material weakness exits. The Company has a process in place to continuously monitor the same and identify gaps, if any, and implement new and /or improved controls wherever the effect of such gaps would have a material effect on the Companyâs operations.
Policy Matters
A. Nomination and Remuneration Policy
The Company recognizes and embraces the benefits of having a diverse Board of Directors and sees increasing diversity at the Board level as an essential element in maintaining a competitive advantage in the complex business that it operates. It is recognized that a Board comprised of appropriately qualified people with wide range of experience relevant to the business of the Company is important to achieve effective corporate governance and sustained commercial success of the Company. At a minimum, the Board of the Company shall consist of at least one woman Director. All Board appointments are made on merit, in the context of the skills, experience, independence, knowledge and integrity which the Board as a whole requires to be effective.
The Nomination, Remuneration and Governance Committee of the Board of Directors has formulated a Nomination and Remuneration Policy containing the criteria for determining qualifications, positive attributes and independence of a Director and policy relating to the remuneration for the Directors, key managerial personnel and senior management personnel of the Company. The Nomination and Remuneration Policy is available on the website of the Company at http://www.lancor.in/investorsrelations-download-pol.php and relevant extracts from the Policy are reproduced in Annexure B to this report.
B. Risk Management Framework
Pursuant to section 134 (3)(n) of the Companies Act, 2013 & regulation 21 of SFBI(Listing Obligations and Disclosures Requirements) Regulations 2015, the Board of Directors of the Company has constituted a Risk Management Committee which is entrusted with the task of monitoring and reviewing the risk management plan and procedures of the Company. The Company has developed and implemented a risk management framework detailing the various risks faced by the Company and methods and procedures for identification, monitoring and mitigation of such risks. The details of the committee and its terms of reference are set out in the Corporate Governance Report forming part of the Boards report. At present the Company has not identified any element of risk which may threaten the existence of the Company.
C. Corporate Social Responsibility Policy
The Corporate Social Responsibility Policy, as formulated by the Corporate Social Responsibility Committee and approved by the Board of Directors is available on the website of the Company at http://www.lancor.in/ investorsrelations-download-pol.php
As reported in the last Annual Report the Company has created a registered Trust under the name and style of Lancor Foundation, a non- profit Trust to pursue the corporate social responsibility policy. The Foundation works closely with and supports the Board and the committee in identifying and implementing CSR activities. The Foundation also assists the Board and the committee in reporting progress of deployed initiatives and in making appropriate disclosures on a periodic basis.
In terms of Section 134 of the Companies Act, 2013 read with the Companies (Corporate Social Responsibility Policy) Rules, 2014, Rule 9 of the Companies (Accounts) Rules 2014 and Rule 9 of the Companies (Corporate Social Responsibility Policy) Rules, 2014 the annual report on Corporate Social Responsibility activities of the Company is given in Annexure - C to this report.
D. Vigil Mechanism
Pursuant to regulation 22 of SFBI (Listing Obligations and Disclosures Requirements) Regulations, 2015 and the provision of Section 177(9) read with Rule 7 of the companies (Meeting of Board and its Powers) Rules 2014 the Company has duly established a vigil mechanism for stakeholders, Directors and employees to report genuine concerns about unethical behavior, actual or suspected fraud or violation of the Companyâs code of conduct or ethics policy. The Audit Committee of the Company oversees the vigil mechanism. The Company affirms that no personnel have been denied direct access to the Chairman of the Audit Committee.
The Policy also provides for adequate protection to the whistle blower against victimization or discriminatory practices. The Policy is available on the website of the Company at http://www.lancor.in/investorsrelations-download-pol.php
OTHER MATTERS
A. Debentures
During the year under review, the Company has not issued any debentures. As on date, the Company does not have any outstanding debentures.
B. Bonus Shares:
The Company on 26th June 2015 after due approval issued and allotted 2,02,50,000 Bonus shares of Rs.2/- each in the ratio of 1 (one) new equity share for every 1 (one) existing equity share held in the Company. Consequent to the issue of bonus shares, the paid up share capital of the Company increased from Rs.4,05,00,000 to Rs.8,10,00,000 consisting of 4,05,00,000 equity shares of Rs.2/- each.
C. Borrowings
The Company has outstanding borrowings of Rs.170,36,24,560/- during the financial Year ended 31st March, 2016.
D. Deposits
The Company has not accepted any deposit in terms of Chapter V of the Companies Act, 2013 read with the Companies (Acceptance of Deposit) Rules, 2014, during the year under review and as such, no amount on account of principal or interest on public deposits was outstanding as of the balance sheet date.
E. Transfer to Investor Education and Protection Fund
As required under the provisions of Sections 124(5) and 125(2)(c) of the Companies Act, 2013, the dividends pertaining to the financial year 2007-08 which were lying unclaimed with the Company was transferred to the Investor Education and Protection Fund during the financial year 2015 - 16. The details of unclaimed dividend transferred to the Investor Education and Protection Fund has been detailed in the Corporate Governance Report forming part of the Annual Report.
F. Human Resources
Employee relation continues to be cordial and harmonious at all levels and in all divisions of the Company. The Board of Directors would like to express their sincere appreciation to all the employees for their continued hard work and dedication.
As a part of the policy for Prevention of Sexual Harassment in the organization, the Company has in place, an Internal Complaints Committee for prevention and redressal of complaints of sexual harassment of women at work place in accordance with Sexual Harassment of Women at Workplace (Prevention, Prohibition, and Redressal) Act, 2013 and relevant rules there under. No complaints were received by the Committee during the period under review.
Number of employees as on March 31, 2016 was 64, which include 8 women employees.
The table containing the names and other particulars of employees in accordance with the provisions of Section 197(12) of the Companies Act, 2013, read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, is appended as Annexure - D to the Boardâs Report. none of the employee of the Company drawing remuneration in excess of the limit specified under Rule 5(2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014. Including Amended Rules.
F. Credit Rating:
CRISIL has re-affirmed its rating of âBBB â in respect of companyâs long term bank loans.
G. Code of Corporate Governance
In compliance with the requirement of regulations 24 to 27 of SEBI (Listing Obligations and Disclosures Requirements) Regulations, 2015, a detailed report on Corporate Governance is annexed to this report as Annexure - H together a Certificate from M/s. V. S. Sowrirajan & Associates, Company Secretaries-in-Practice, affirming compliance with the said Code.
H. Code of Conduct
In compliance with requirement of SEBI (Listing Obligations and Disclosures Requirements) Regulations, 2015 and Companies Act, 2013 the Company has laid down a Code of Conduct (Code) for all the Board Members and Senior Management Personnel of the Company. The Code is also posted on the Website of the Company http://www.lancor.in/investorsrelations-download-pol.php All the Board Members and Senior Management Personnel have affirmed their compliance with the Code for the financial year ended 31st March, 2016. A declaration to this effect signed by CA Mallika Ravi, the Chief Executive Officer, of the Company forms part of this report.
I. Management Discussion and Analysis Report
In accordance with the requirement of the Listing regulations, the Management Discussion and Analysis Report titled as Management Report is presented in a separate section of the Annual Report.
J. Extract of Annual Return
In terms of Section 134 of the Companies Act, 2013 read with Rules 12(1) of the Companies (Management and Administration) Rules, 2014, the extract of the Annual Return of the Company for the financial year 2015-16 is provided in Annexure - E to this report.
K. Particulars of Loans, Guarantees and Investments
In terms of Section 134 of the Companies Act, 2013, the particulars of loans, guarantees and investments given by the Company under Section 186 of the Companies Act, 2013 is detailed in (Note No.2.13) Notes to Standalone Financial Statements
L. Related Party Transactions
All related party transactions that were entered into during the financial year were at armâs length basis and were in the ordinary course of business. All related party transactions are placed before the Audit Committee as also the Board for approval on quarterly basis, for the transactions which are of a foreseen and repetitive nature. The Board of Directors of the Company has, on recommendation of the Audit Committee adopted a policy to regulate the transactions between the Company and its related parties in compliance with the applicable provisions of the Companies Act, 2013 and rules made there under and the Listing Agreement. During the year, the Company has not entered into any contract / arrangement / transaction with a related party which can be considered as material in terms of the policy on related party transactions laid down by the Board of Directors. These Policies have been uploaded on the website of the Company at http://www.lancor.in/investorsrelations-download-pol.php the related party transactions undertaken during the financial year 2015 - 16 are detailed in Notes (Note No.4.09) to Accounts of the Financial Statements.
Particulars of contracts or arrangements with related parties referred to in section 188(1) of the Companies Act, 2013 in form AOC-2 is appended as Annexure- F to the Boardâs Report.
M. Conservation of Energy, Technology Absorption and Foreign Exchange Earnings and Outgo
Lancor Holdings Limited does not carry on any manufacturing activity and accordingly the provision to furnish information as per section 134(3)(m) of the Companies Act 2013, read with the Rule 8(2) of the Companies (Accounts) Rules, 2014, particulars relating to (A) Conservation of energy and (B) Technology Absorption is not applicable.
Foreign Exchange Earnings and Outgo
Foreign Exchange Earnings : Nil
Foreign Exchange Outgo : Rs.78,898 /-
N. Financial Position and Performance of Subsidiaries, Joint Ventures and Associates
As on 31st March 2016, the Company has four subsidiaries and one Joint Venture viz., Lancor Guduvanchery Developments Limited, Lancor Sriperumbudur Developments Limited, Lancor Egatoor Developments Limited, Lancor Maintenance & Services Limited and a Joint Venture, Central Park West Venture.
Further, the Board, in its meeting held on 07th May 2015, subject to the approval of Honâble High Court of the Judicature at Madras, amalgamation of two of its wholly owned subsidiaries, namely Lancor Guduvanchery Developments Limited (Transferor Company-1) and Lancor Sriperumbudur Developments Limited (Transferor Company-2) in order to ensure better management of the both the companies as a single entity. The Company has obtained due approval from the concerned Regulators and the order of the Honâble High Court having Judicature at Madras is awaited. Apart from the same there has been no material change in the nature of the businesses of the subsidiaries.
The consolidated financial statement has been prepared in accordance with the relevant accounting standards and a separate statement containing the salient features of the financial statement of its subsidiaries and associate in form AOC-1 is attached along with the financial statement of the Company as Annexure-G
As per the provisions of Section 136 of the Companies Act, 2013, the Company has placed separate audited accounts of its subsidiaries on its website www.lancor.in and copy of separate audited financial statements of its subsidiaries will be provided to the shareholders at their request.
O. Green initiatives
Electronic copies of the Annual Report 2015-16 along with Notice of the Thirty First Annual General Meeting are sent to all members whose email addresses are registered with the Company/ Depository Participant(s). For members who have not registered their email addresses, physical copies of the Annual Report 2016 along with the Notice of the Thirty First Annual General Meeting are sent in the permitted mode. Members requiring physical copies can send a request to the Company. Further, the soft copy of the Annual Report (in pdf format) is also available on our website (www.lancor.in)
Pursuant to Section 108 of the Companies Act, 2013, Rule 20 of the Companies (Management and Administration) Rules, 2014, and Listing Regulations, the Company is providing e-voting facility to all members to enable them to cast their votes electronically on all resolutions set forth in the notice. The instructions for e-voting are provided in the notice.
P. Details in respect of frauds reported by auditors under sub section (12) of section 143 other than those which are reportable to the Central Government
There is no such fraud required to be reported under section 143(12) of the companies Act,2013 Q. Additional Information to Shareholders
All important and pertinent investor information such as financial results, investor presentations, press releases, new launches and project updates are made available on the Companyâs website (www.lancor.in) on a regular basis.
ACKNOWLEDGEMENT
The Directors would like to place on record their sincere appreciation to the Companyâs customers, vendors, and bankers, viz., The Catholic Syrian Bank Limited, Axis Bank Limited, City Union Bank Limited, TATA Capital Housing Finance Limited, LIC Housing Finance Limited and HDFC Limited, for their continued support to the Company during the year. The Directors also wish to acknowledge the contribution made by employees at all levels for steering the growth of the organization. We thank the Government of India, the state government(s) and other government agencies for their assistance and cooperation and look forward to their continued support in future.
Finally, the Board would like to express its gratitude to the members for their continued trust, cooperation and support.
For and on behalf of the Board of Directors of
LANCOR HOLDINGS LIMITED
Sd/- Sd/-
Place : Chennai R V Shekar R SANKARANARAYANANAN
Date : August 01, 2016 Director Director
DIN:00259129 DIN:00172202
Mar 31, 2015
Dear Member(s),
The Directors have great pleasure in presenting the Thirtieth Annual
Report on the business and operations of your Company together with
Audited financial statement of the Company including consolidated
financial statement of the Company for the financial year ended 31st
March 2015 and the Auditors' report thereon.
FINANCIAL SUMMARY AND HIGHLIGHTS
(Amount in Rs. Lakhs)
Standalone Consolidated
Particulars
2014- 2015 2013 -2014 2014 - 2015 2013 - 2014
Total Revenue 10,736.23 8,640.80 15126.19 13,654.09
Expenditure 6,574.22 4,102.74 9741.04 8,346.86
EBITDA 4,162.01 4,538.06 5385.15 5,307.23
Interest 2,127.94 1,925.39 2387.21 2,237.59
Depreciation 310.12 256.73 326.60 269.44
Profit / (Loss)
before tax 2,178.66 2,355.94 2650.55 2,800.20
Less :
Provision for
Current tax 713.13 759.49 958.98 1,046.09
Deferred tax (13.91) 0.77 (14.97) 69.87
(Excess) / short
provision of Tax
earlier year 3.58 0.00 22.36 0.00
Profit / (Loss)
after Tax 1,475.86 1,595.68 1684.19 1,684.24
Minority Interest 0.00 0.00 0.37 .72
Add : Balance
brought forward
from 8,671.64 7,709.36 8985.21 7,935.19
previous year
(includes Lancor
Projects Ltd)
Less : Prior
year adjustments 20.79 0.00 20.79 0.00
Available for
appropriation 8,374.26 9,305.03 9,267.04 9,618.70
Dividend 405.00 405.00 405.00 405.00
Tax on dividend 94.60 68.83 94.60 68.83
Transfer to
General Reserve 147.59 159.56 147.59 159.66
Balance Carried
to Balance Sheet 7,727.08 8,671.64 8609.93 8,985.21
BUSINESS OUTLOOK FOR LANCOR HOLDINGS LIMITED, ITS SUBSIDIARIES AND
ASSOCIATE BUSINESS OVERVIEW
There has been no material change in the nature of the business of the
Company. The operations of the Company can be categorized into two main
verticals:
a) Construction and development of residential and commercial projects
b) Contractual projects
Your Company completed 30 years in January 2015, which is a major
milestone. It has been an exciting and glorious journey of 30 years
with many milestones created along the way.
Your Company built the brand "Lancor" in the last 3 decades by
pioneering some of the finest building concepts and has given South
India some of its landmark buildings which include "The Atrium", the
first condominium styled residential project in Chennai, Westminster,
the first all side glass-curtained wall building in India, Menon
Eternity, the first LEED Platinum rated Building in South India, The
Central Park and The Courtyard.
The innovation, timely completion of projects and hand over of
apartments as per the commitments to our customers and customers
responsiveness are the core strengths of your Company, which has made
your Company to remain successful.
The fiscal year 2014-15 continued to be subdued for property
development business as the Indian economy did not progress much. There
were continued challenges and uncertainties in the Real Estate business
with high interest rates and negative customer sentiments. The real
estate market and customer sentiments work in tandem with the growth of
the Indian economy. The GDP of India has been estimated to achieve 7.5%
growth this fiscal, which is more than the previous year. With the
revival of Indian economy, your Company hopes that the real estate
would also start seeing revival but in a very gradual manner.
Though there has been demand for housing, the buyers have been
deferring decision to buy homes as they are uncertain of their future,
income and employment.
Your Company continues to deliver on its promises to the customers even
in a difficult market and has delivered the following projects during
the year, as per the commitments made to the customers;
Kiruba Cirrus, Valasaravakkam, Chennai: The project is 100% complete
and customers have started living in. The marketing activities have
geared up on digital platform to sell the balance number of units and
with the sale of Cirrus apartments, the profitability of your Company
will get boosted up significantly.
Sonnet Square: All the apartments in Sonnet Square got sold out. The
project has been completed in full and customers have occupied the
apartments.
Corner Stone: The completion certificate has been obtained and the
customers have started taking possession of their apartments for
interiors. The revenue of Corner Stone has been recognized to the
extent of 61.49% in 2014-15.
TCP Lake Front (TCPLF) Phase I, Sholinganallur, OMR: The construction
of 136 apartments across 8 blocks of Phase I of TCPLF is in the
finishing stage. Your Company is planning to handover the apartments
for interiors to the customers starting September 2015. As the
construction is nearing completion, the balance 43 apartments should
get sold out in the current financial year.
The following are the proposed projects to be launched in the current
financial year 2015-2016
TCP Lake Front, Sholinganllur (Phase II) OMR
Your Company will be launching Phase II of TCP Lake Front at
Sholinganallur in the current financial year 2015-16 comprising of 279
apartments on 2.95 acres of land. The proposal/drawings have already
been submitted to the authorities for approval.
The development will comprise of 2 BHK of about 989 sq.ft and 3 BHK
with a maximum size of 1,422 sq.ft. This development will generate a
revenue of minimum of Rs.150 Crores.
SUBSIDIARY COMPANIES:
LANCOR GST DEVELOPMENT LIMITED/ LANCOR REALTY LIMITED
The Hon'ble High Court of Judicature at Madras, on 31st March 2015
ordered the merger of Lancor GST Developments Ltd and Lancor Realty
Limited with its holding Company, Lancor Holdings Ltd, with appointed
date as 01.04.2013.
The accounts have been restated accordingly.
Your Company has obtained the no objection certificate for "wet land
conversion" from the Collector for the total extent of 6.27 acres of
land that was purchased from L&T.
The first phase of the residential project in the land acquired from
L&T in GST Road will be launched during the year, which has a revenue
potential of about Rs.85 Crores.
Building plans are drawn for Phase I comprising of 2 towers each having
stilt plus 10 floors with a total of 172 apartments on the land extent
of 1.54 acres. The drawings have been submitted to DTCP for approval.
LANCOR GUDUVANCHERY DEVELOPMENTS LIMITED (LGDL)
The construction of G block in Lumina is underway and in all it will
have 112 apartments and it is expected to be completed by end of this
financial year for handover to customers.
Lumina is a well developed residential community today, which offers
great living style for the owners and tenants. This project is gaining
huge attraction as a good investment opportunity as well.
LANCOR SRIPERUMBUDUR DEVELOPMENTS LIMITED (LSDL)
Townsville: The D block of Townsville will be handed over for interiors
to the customers in the next few months in the current financial year
2015-16.
SERVICE COMPANIES:
LANCOR MAINTENANCE & SERVICES LIMITED (LMSL)
During the year, LMSL has taken over the facility management of Sonnet
Square, Kiruba Cirrus, Town & Country and Lumina, which will add to
their revenue in addition to the other projects of Lancor, which LMSL
has been maintaining. As Corner Stone gets completed, the same will
also be handed over to LMSL for facility management
MATERIAL CHANGES AND COMMITMENTS, IF ANY, AFFECTING THE FINANCIAL
POSITION BETWEEN THE END OF THE FINANCIAL YEAR AND THE DATE OF REPORT:
The Board, in its meeting held on 07th May 2015, considered and
recommended issue of 2,02,50,000 Bonus equity shares of Rs.2/- each in
the ratio of 1 (one) new equity share for every 1(one) existing equity
share held in the Company (with record date 25.06.2015). The issue of
bonus share was approved by the members by way of Postal Ballot, the
result of which was declared on 15.06.2015. Consequent to the issue of
bonus shares, the paid up share capital of the Company increased from
Rs. 4,05,00,000 to Rs. 8,10,00,000 consisting of 4,05,00,000 equity
shares of Rs.2/- each.
Further, the Board, in its meeting held on 07th May 2015, subject to
the approval of members and the Hon'ble High Court of the Judicature at
Madras, considered and recommended the amalgamation of two of its
wholly owned subsidiaries, namely Lancor Guduvanchery Developments
Limited (Transferor Company-1) and Lancor Sriperumbudur Developments
Limited (Transferor Company-2) in order to ensure better management of
the both the companies as a single entity.
Apart from these, there has been no other material change and
commitment effecting the financial position of the Company between the
end of the financial year and the date of the report.
FINANCIAL OVERVIEW
STANDALONE
During the financial year 2014-15, the Company has on a standalone
basis, registered total revenues of Rs.1,07,36,23,210/- as compared to
Rs.86,40,79,750/- in the previous year, an increase of 24.25 % y-o-y.
The Profit before Tax and Profit after Tax have declined by 7.52 %,
7.51 % respectively.
CONSOLIDATED
The consolidated revenues of the Company during the financial year
2014-15 was Rs.1,51,26,18,534/-, a growth of 10.78 % from the previous
year. The Profit before Tax was higher/(lower) by (5.34%) and Profit
after Tax was higher/ (lower) (after considering minority interest) by
.02 % as compared to the financial year 2013-14.
DIVIDEND:
The Board of Directors at its meeting held on 7th May 2015 recommended
a final dividend of Rs.2 per equity share, subject to the approval of
the members at the ensuing Annual General Meeting of the Company
(equivalent to Re.1 per equity share, post issue of 1:1 bonus shares,
which was approved by the members by way of Postal Ballot) for the
financial year ended 31st March 2015.
The total dividend appropriation (excluding dividend distribution tax)
for the current year is Rs. 4.05 crores, as against Rs. 4.05 crores in
the previous year.
TRANSFER TO RESERVE:
Even though it is not mandatory on the part of the Company under
section 123 of the companies Act, 2013 read with the Companies
(Declaration and Payment of Dividend) Rules, 2014 to transfer any
specific percentage of its profits to the General reserves of the
Company before the declaration of any dividend in any financial year,
the Company proposes to transfer voluntarily a sum of Rs.1,47,58,596/-
to the General Reserve, out of amount available for appropriation. An
amount of Rs.8,40,82,515/- is retained in the surplus.
CORPORTE SOCIAL RESPONSIBILITY (CSR);
As a part of CSR initiative, your Company has extended assistance in
building toilets in Sree Sayee Vivekananda Vidhyalaya in North Chennai.
North Chennai generally is in a deprived part of Chennai where Sayee
Vivekanandha Vidhyalaya is running a school to benefit the children
from the families of low income group. Your Company has identified this
school for constructing toilets for the children and during the year we
have spent Rs.11.16 lakhs.
During the year, your Company formed a public charitable Trust under
the name and style of Lancor Foundation, with a major objective to
provide training to enhance the technical skill, knowledge, among the
youth engaged or looking for carrer development in the construction
sector. After completion of training in tile fixing, masonry, painting,
plumbing, electrical, carpentry and other construction related works,
the trainees would be self competent either to pursue the occupation or
to take up employment.
Your Company has started this initiative with an objective of not only
to impart training to the youth and make them employable.
Lancor Foundation has identified a piece of land for constructing a
training centre in Sriperumbudur where the in- house training will be
given free of cost.
Your Company has funded Rs.26.62 lakhs to Lancor Foundation towards
meeting its objectives.
Board of Directors and its Committees
A. Composition of the Board of Directors
The Board of Directors of the Company comprises of Non Executive
Chairman who is a promoter of the Company and Six Non-Executive
Directors, including Four Independent Directors. The Company also has
one Women Director who is Non Executive. The composition of the Board
of Directors is in compliance with Clause 49 of the Listing Agreement
and Section 149 of the Companies Act, 2013.
The Company has received necessary declarations from the Independent
Directors under Section 149(7) of the Companies Act, 2013 stating that
they meet the criteria of independence as specified in Section 149(6)
of the Companies Act, 2013 and Clause 49 of the Listing Agreement.
B. Meetings
The Board of Directors duly met Eight (08) times during the year, the
details of which are given in the corporate Governance report that
forms part of this annual report. In respect of all such meetings
proper notices were given and the proceedings were properly recorded
and signed in the minutes book maintained for the purpose. The
intervening gap between any two meetings was within the period
prescribed under the companies Act,2013.
In accordance with the provisions of the Companies Act, 2013, a
separate meeting of the Independent Directors of the Company was held
on March 31, 2015.
C. Appointment of Director
Sri. S.Sridharan (DIN: 01773791) who was appointed as an Additional
Director in the capacity of a Non  Executive
Director by the Board at their meeting held on 13.11.2014 and his
appointment was regularized at the Annual General meeting held on
December 26, 2014. The Board of Directors, based on the recommendation
of Nomination, Remuneration and Governance Committee, has recommended
the appointment of Sri. S.Sridharan as a Non  Executive Director of
the Company. We thank the shareholders for their support in confirming
Sri. S.Sridharan's (DIN: 01773791) appointment at the Annual General
Meeting held on December 26, 2014.
The Companies Act, 2013, provides for the appointment of Independent
Directors. Sub-section (10) of Section 149 of the Companies Act, 2013
provides that Independent Directors shall hold office for a term of up
to five consecutive years on the Board of a Company; and shall be
eligible for re-appointment on passing a special resolution by the
shareholders of the Company. Accordingly, all the Independent
Directors, ie., Sri.R.Sankaranarayananan (DIN-00172202), Sri.
S.V.Venkatesan (DIN 00004010), Sri.T.P.Raman (DIN-00320782), and
Sri.Harmohan Sahni (DIN-00046068) were appointed by the shareholders at
the last Annual general meeting as required under Section 149(10).
Further, according to Sub-section (11) of Section 149, no Independent
Director shall be eligible for appointment for more than two
consecutive terms of five years. Sub-section (13) states that the
provisions of retirement by rotation as defined in Sub-sections (6) and
(7) of Section 152 of the Act shall not apply to such Independent
Directors. None of the Independent Directors will retire at the ensuing
Annual General Meeting.
D. Re-appointment of Director Retiring by Rotation
In terms of Section 152 of the Companies Act, 2013, Mrs. Sangeetha
Shekar (DIN-03344252) liable to retire by rotation at the ensuing
Annual General Meeting and being eligible, offers herself for
re-appointment. The Board of Directors based on the recommendation of
Nomination, Remuneration and Governance Committee, has recommended the
re-appointment of Mrs. Sangeetha Shekar (DIN-03344252) retiring by
rotation.
Brief resumes of the Directors proposed to be appointed / re-appointed
have been provided in the note to the Notice convening the Annual
General Meeting. Specific information about the nature of their
expertise in specific functional areas and the names of the companies
in which they hold Directorship and membership / chairmanship of the
Board Committees, as stipulated under Clause 49 of the Listing
Agreement, have also been included.
E. Committees of the Board
The constitution and terms of reference of Audit Committee, Nomination
and Remuneration Committee and Stakeholders Relationship Committee were
also aligned with the requirements of Clause 49 of the Listing
Agreement and the Companies Act, 2013. The Company has also constituted
Corporate Social Responsibility Committee, Risk Management Committee.
A detailed note on the Committees of the Board of Directors is given in
the Corporate Governance Report forming part of the Annual Report.
F. Performance Evaluation
Section 134 of the Companies Act, 2013 states that formal evaluation
needs to be made by the Board, of its own performance and that of its
committees and the individual Directors. Schedule IV of the Companies
Act, 2013 states that the performance evaluation of Independent
Directors shall be done by the entire Board of Directors excluding the
Directors being evaluated. Clause 49 of the Listing Agreement mandates
that the Board shall monitor and review the Board's evaluation
framework.
Pursuant to the provisions of section 134 (3) (p) of the Companies Act,
2013 and Clause 49 of the Listing Agreement, the Board has carried out
an evaluation of its own performance, the Directors individually as
well as the evaluation of the working of its Committees. The manner in
which the evaluation has been carried out has been explained in the
Corporate Governance Report. None of the Independent Directors is due
for re-appointment.
G. Directors' Responsibility Statement
In terms of the requirements of Section 134(5) of the Companies Act,
2013, we, on behalf of the Board of Directors, hereby confirm that:
a) in the preparation of the annual accounts, the applicable accounting
standards had been followed along with proper explanation relating to
material departures;
b) the Directors had 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;
c) the Directors had taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of this Act for safeguarding the assets of the Company and
for preventing and detecting fraud and other irregularities;
d) the Directors had prepared the annual accounts on a going concern
basis; and
e) the Directors had laid down internal financial controls to be
followed by the Company and such internal financial controls are
adequate and were operating effectively.
f) the Directors had devised proper systems to ensure compliance with
the provisions of all applicable laws and that such systems were
adequate and operating.
Changes in Directors and Key Managerial Personnel
Mr.R.V.Shekar retired as the Managing Director of the Company on
September 30, 2014, on attaining the age of 65 years and continuing as
the Chairman and Non-.Executive Director of the Company. Mr.R.V.Shekar
is a Promoter of the Company and has played a seminal role in
contributing to the growth of the Company. The Board places on record
its gratitude for the services rendered by Mr.R.V.Shekar during his
long association with the Company.
Pursuant to the provisions of Section 203 of the Act, which came into
effect from April 1, 2014, the appointments of Mrs. Mallika Ravi, Chief
Executive Officer, Mr. K.Srinivasan, Chief Financial Officer as key
managerial personnel of the Company were formalized with effect from
August 08, 2014.
Mr.P.Mahadevan, was appointed as Compliance Officer and Company
Secretary of the Company with effect from July 02, 2014, consequent to
the resignation of Mr. H.Viswanath, with effect from July 01, 2014.
Further Mr.Pradeep Kumar Nath was appointed as Compliance Officer and
Company Secretary of the Company with effect from June 23, 2015,
consequent to the resignation of Mr.P.Mahadevan, with effect from June
06, 2015.
Changes in Subsidiaries, Joint Ventures and Associates
Consequent to the amalgamation of Lancor Realty Limited and Lancor GST
Developments Limited with the Company in accordance with the scheme of
amalgamation as approved by Hon' ble High Court of Judicature at Madras
vide its order dated 31.03.2015, both the Transferor companies ceased
to be subsidiary of the Company.
Significant or Material Orders Passed by Regulators / Courts
During the year under review, there were no significant or material
orders passed by the Regulators or Courts or Tribunals impacting the
going concern status and Company's operations in future.
Audit Related Matters
A. Audit Committee
In terms of clause 49 of the listing agreement and the provision of
Section 177(8) read with Rule 6 of the companies (Meeting of Board and
its Powers) Rules 2014 the Company has duly constituted a qualified and
independent Audit Committee. The Audit Committee of the Board
consisting of three "Non-Executive & Independent Directors" as members
having adequate financial and accounting knowledge. The composition,
procedures, powers and role/functions of the audit committee and its
terms of reference are set out in the Corporate Governance Report
forming part of the Boards Report.
During the period under review, the suggestions put forth by the Audit
Committee were duly considered and accepted by the Board of Directors.
There were no instances of non-acceptance of such recommendations.
B. Statutory Auditors
At the Annual General Meeting of the Company held on December 26, 2014,
M/s.G.M.Kapadia & Co., Chartered Accountants (Firm Registration Number
104767W) were re-appointed as the Statutory Auditors of the Company for
a period of 3 years, which is subject to annual ratification by the
members of the Company in terms of Section 139 of the Companies Act,
2013 read with the Companies (Audit and Auditors) Rules, 2014.
Accordingly, the appointment of M/s.G.M.Kapadia & Co., Chartered
Accountants, as the Statutory Auditors of the Company, is placed for
ratification by the shareholders. In this regard, the Company has
received a Certificate from the Auditors to the effect that if they are
reappointed, it would be in accordance with the provisions of Section
141 of the Companies Act, 2013. The Audit committee and the Board of
Directors recommend the ratification of appointment of M/s.G.M.Kapadia
& Co., Chartered Accountants as the Statutory Auditors and to fix their
remuneration. The members may ratify the appointment of M/
s.G.M.Kapadia & Co., Chartered Accountants as the Statutory Auditors of
the Company for the financial year 2015-16.
There are no qualifications or adverse remarks in the Statutory
Auditors' Report which require any explanation from the Board of
Directors.
C. Secretarial Audit
Pursuant to Section 204 of the Companies Act, 2013 and the Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014,
your Company has appointed M/s.V.S.Sowrirajan & Associates, Company
Secretaries-in- Practice to undertake the Secretarial Audit of the
Company. The Secretarial Audit report in Form No.MR.3 for Financial
year 2014Â15 is annexed herewith, as Annexure- A.
There are no qualifications or adverse remarks in the Secretarial Audit
Report which require any explanation from the Board of Directors.
D. Cost Audit
Based on the overall turnover of the Company from all its products and
services during the immediately preceding financial year i.e 2013-14
which exceeds Rs.35 Crores but less than Rs.100 Crores, the Company is
required to maintain cost records for Construction industry in its
books of account. The Cost Compliance Report in Form B, has been issued
by M/s. N Sivashankaran, Cost Accountants, for the financial year 2013-
14.
The overall turnover of the Company from all its products and services
during the financial year 2014-15 exceeds Rs.100 Crores, therefore in
terms of Rule 4 of the Companies (Cost Records and Audit) Rules, 2014,
the Company is required to maintain cost records and audit the same by
a Cost Accountant for the financial year 2015-16. Accordingly, the
Audit Committee of the Board at their meeting held on 07.05.2015
appointed M/s.N.Sivashankaran & Co, Practicing Cost Accountant, as the
Cost Auditor of the Company for financial year 2015-16. The Audit
Committee and the Board of Directors recommend the ratification of
appointment of M/s.N.Sivashankaran & Co, Practicing Cost Accountant as
the Cost Auditor of the Company and to fix their remuneration.
E. Internal Financial Controls
There are adequate internal financial controls in place with reference
to the financial statements. During the year under review, these
controls were evaluated and no significant weakness was identified
either in the design or operation of the controls.
Policy Matters
A. Nomination and Remuneration Policy
The Company recognizes and embraces the benefits of having a diverse
Board of Directors and sees increasing diversity at the Board level as
an essential element in maintaining a competitive advantage in the
complex business that it operates. It is recognized that a Board
comprised of appropriately qualified people with wide range of
experience relevant to the business of the Company is important to
achieve effective corporate governance and sustained commercial success
of the Company. At a minimum, the Board of the Company shall consist of
at least one woman Director. All Board appointments are made on merit,
in the context of the skills, experience, independence, knowledge and
integrity which the Board as a whole requires to be effective.
The Nomination, Remuneration and Governance Committee of the Board of
Directors has formulated a Nomination and Remuneration Policy
containing the criteria for determining qualifications, positive
attributes and independence of a Director and policy relating to the
remuneration for the Directors, key managerial personnel and senior
management personnel of the Company. The Nomination and Remuneration
Policy is available on the website of the Company at
http://www.lancor.in/newdesign/Investor.aspx#.Vd3Cf7V0Z2g and relevant
extracts from the Policy are reproduced in Annexure B to this report.
B. Risk Management Framework
Pursuant to section 134 (3) (n) of the Companies Act, 2013 & Clause 49
of the listing agreement , the Board of Directors of the Company has
constituted a Risk Management Committee which is entrusted with the
task of monitoring and reviewing the risk management plan and
procedures of the Company. The Company has developed and implemented a
risk management framework detailing the various risks faced by the
Company and methods and procedures for identification, monitoring and
mitigation of such risks. The details of the committee and its terms of
reference are set out in the Corporate Governance Report forming part
of the Boards report. At present the Company has not identified any
element of risk which may threaten the existence of the Company.
C. Corporate Social Responsibility Policy
The Corporate Social Responsibility Policy, as formulated by the
Corporate Social Responsibility Committee and approved by the Board of
Directors is available on the website of the Company at
http://www.lancor.in/newdesign/ Investor.aspx#.Vd3Cf7V0Z2g
As reported in the last Annual Report the Company has created a
registered Trust under the name and style of Lancor Foundation, a non-
profit Trust to pursue the corporate social responsibility policy. The
Foundation works closely with and supports the Board and the committee
in identifying and implementing CSR activities. The Foundation also
assists the Board and the committee in reporting progress of deployed
initiatives and in making appropriate disclosures on a periodic basis.
In terms of Section 134 of the Companies Act, 2013 read with The
Companies (Corporate Social Responsibility Policy) Rules, 2014, Rule 9
of the Companies (Accounts) Rules 2014 and Rule 9 of the Companies
(Corporate Social Responsibility Policy) Rules, 2014 the annual report
on Corporate Social Responsibility activities of the Company is given
in Annexure - C to this report.
D. Vigil Mechanism
In terms of clause 49 of the listing agreement and the provision of
Section 177(9) read with Rule 7 of the companies (Meeting of Board and
its Powers) Rules 2014 the Company has duly established a vigil
mechanism for stakeholders, Directors and employees to report genuine
concerns about unethical behavior, actual or suspected fraud or
violation of the Company's code of conduct or ethics policy. The Audit
Committee of the Company oversee the vigil mechanism. The Company
affirms that no personnel has been denied direct access to the Chairman
of the Audit Committee.
The Policy also provides for adequate protection to the whistle blower
against victimization or discriminatory practices. The Policy is
available on the website of the Company at
http://www.lancor.in/newdesign/Investor.aspx#.Vd3Cf7V0Z2g
Other Matters
A. Debentures
During the year under review, the Company has not issued any
debentures. As on date, the Company does not have any outstanding
debentures.
B. Bonus Shares:
The Company on 26th June 2015 issued 2,02,50,000 Bonus shares of Rs.2/-
each in the ratio of 1 (one) new equity share for every 1 (one)
existing equity share held in the Company. Consequent to the issue of
bonus shares, the paid up share capital of the Company increased from
Rs. 4,05,00,000 to Rs. 8,10,00,000 consisting of 4,05,00,000 equity
shares of Rs.2/- each.
C. Borrowings
The Company has outstanding borrowings of Rs.1,50,92,56,513/- during
the financial Year ended 31st March, 2015.
D. Deposits
The Company has not accepted any deposit in terms of Chapter V of the
Companies Act, 2013 read with the Companies (Acceptance of Deposit)
Rules, 2014, during the year under review and as such, no amount on
account of principal or interest on public deposits was outstanding as
of the balance sheet date.
E. Transfer to Investor Education and Protection Fund
In compliance of Section 205C of the Companies Act, 1956, the dividends
pertaining to the financial year 2006-07 which were lying unclaimed
with the Company was transferred to the Investor Education and
Protection Fund during the financial year 2014- 15. The details of
unclaimed dividend transferred to the Investor Education and Protection
Fund has been detailed in the Corporate Governance Report forming part
of the Annual Report.
F. Human Resources
Employee relation continues to be cordial and harmonious at all levels
and in all divisions of the Company. The Board of Directors would like
to express their sincere appreciation to all the employees for their
continued hard work and dedication.
As a part of the policy for Prevention of Sexual Harassment in the
organization, the Company has in place, an Internal Complaints
Committee for prevention and redressal of complaints of sexual
harassment of women at work place in accordance with Sexual Harassment
of Women at Workplace (Prevention, Prohibition, and Redressal) Act,
2013 and relevant rules thereunder. No complaints were received by the
Committee during the period under review.
Number of employees as on March 31, 2015 was 83, which include 10 women
employees.
The table containing the names and other particulars of employees in
accordance with the provisions of Section 197(12) of the Companies Act,
2013, read with Rule 5(1) of the Companies (Appointment and
Remuneration of Managerial Personnel) Rules, 2014, is appended as
Annexure - D to the Board's Report. No employee of the Company drawing
remuneration in excess of the limit specified under Rule 5(2) of the
Companies (Appointment and Remuneration of Managerial Personnel) Rules,
2014.
F. Credit Rating:
CRISIL has re-affirmed its rating of "BBB " in respect of company's
long term bank loans.
G. Code of Corporate Governance
In compliance with the requirement of Clause 49 of the Listing
Agreement with the Stock Exchange, a detailed report on Corporate
Governance is annexed to this report as Annexure  I together a
Certificate from M/s.V.S.Sowrirajan & Associates, Company
Secretaries-in-Practice, affirming compliance with the said Code.
H. Code of Conduct
In compliance with clause 49 of the listing agreement and companies
Act,2013 the Company has laid down a Code of Conduct (Code) for all the
Board Members and Senior Management Personnel of the Company. The Code
is also posted on the Website of the Company
http://www.lancor.in/newdesign/Investor.aspx#.Vd3Cf7V0Z2g All the Board
Members and Senior Management Personnel have affirmed their compliance
with the Code for the financial year ended 31st March, 2015. A
declaration to this effect signed by CA Mallika Ravi, the Chief
Executive Officer, of the Company forms part of this report.
I. Management Discussion and Analysis Report
In accordance with the requirement of the Listing Agreement, the
Management Discussion and Analysis Report titled as Management Report
is presented in a separate section of the Annual Report.
J. Extract of Annual Return
In terms of Section 134 of the Companies Act, 2013 read with Rules
12(1) of the Companies (Management and Administration) Rules, 2014, the
extract of the Annual Return of the Company for the financial year
2014-15 is provided in Annexure - E to this report.
K. Particulars of Loans, Guarantees and Investments
In terms of Section 134 of the Companies Act, 2013, the particulars of
loans, guarantees and investments given by the Company under Section
186 of the Companies Act, 2013 is detailed in Notes to Standalone
Financial Statements.
L. Related Party Transactions
All related party transactions that were entered into during the
financial year were at arm's length basis and were in the ordinary
course of business. All related party transactions are placed before
the Audit Committee as also the Board for approval on quarterly basis,
for the transactions which are of a foreseen and repetitive nature. The
Board of Directors of the Company has, on recommendation of the Audit
Committee adopted a policy to regulate the transactions between the
Company and its related parties in compliance with the applicable
provisions of the Companies Act, 2013 and rules made there under and
the Listing Agreement. During the year, the Company has not entered
into any contract / arrangement / transaction with a related party
which can be considered as material in terms of the policy on related
party transactions laid down by the Board of Directors. These Policies
have been uploaded on the website of the Company at
http://www.lancor.in/newdesign/Investor.aspx#.Vd3Cf7V0Z2g The related
party transactions undertaken during the financial year 2014 Â 15 are
detailed in Notes to Accounts of the Financial Statements.
Particulars of contracts or arrangements with related parties referred
to in section 188(1) of the Companies Act, 2013 in form AOC-2 is
appended as Annexure- F to the Board's Report.
M. Conservation of Energy, Technology Absorption and Foreign Exchange
Earnings and Outgo
Lancor Holdings Limited does not carry on any manufacturing activity
and accordingly the provision to furnish information as per section
134(3)(m) of the Companies Act 2013, read with the Rule 8(2) of the
Companies (Accounts) Rules, 2014, particulars relating to (A)
Conservation of energy and (B) Technology Absorption is not applicable.
Foreign Exchange Earnings and Outgo
Foreign Exchange Earnings : Nil
Foreign Exchange Outgo : Rs.61,095/-
N. Financial Position and Performance of Subsidiaries, Joint Ventures
and Associates
As on 31st March 2015, the Company has four subsidiaries viz., Lancor
Guduvanchery Developments Limited, Lancor Sriperumbudur Developments
Limited, Lancor Egatoor Developments Limited, Lancor Maintenance &
Services Limited and a Joint Venture, Central Park West Venture. There
has been no material change in the nature of the business of the
subsidiaries. The consolidated financial statement has been prepared in
accordance with the relevant accounting standards and a separate
statement containing the salient features of the financial statement of
its subsidiaries and associate in form AOC- 1 is attached along with
the financial statement of the Company as Annexure -G
As per the provisions of Section 136 of the Companies Act, 2013 the
Company has placed separate audited accounts of its subsidiaries on its
website www.lancor.in and copy of separate audited financial statements
of its subsidiaries will be provided to the shaholders at their
request.
O. Details in respect of frauds reported by auditors under sub section
(12) of section 143 other than those which are reportable to the
Central Government;
There is no such fraud required to be reprted under section 143(12) of
the companies Act,2013.
Q. Green initiatives
Electronic copies of the Annual Report 2014-15 and Notice of the
Thirtieth Annual General Meeting are sent to all members whose email
addresses are registered with the Company / Depository Participant(s).
For members who have not registered their email addresses, physical
copies of the Annual Report 2015 and the Notice of the Thirtieth Annual
General Meeting are sent in the permitted mode. Members requiring
physical copies can send a request to the Company. Copy of the Annual
Report is also available on our website (www.lancor.in)
Pursuant to Section 108 of the Companies Act, 2013, Rule 20 of the
Companies (Management and Administration) Rules, 2014, and Listing
Agreement, the Company is providing e-voting facility to all members to
enable them to cast their votes electronically on all resolutions set
forth in the notice. The instructions for e-voting are provided in the
notice.
P. Additional Information to Shareholders
All important and pertinent investor information such as financial
results, investor presentations, press releases, new launches and
project updates are made available on the Company's website
www.lancor.in) on a regular basis.
ACKNOWLEDGEMENT
The Directors would like to place on record their sincere appreciation
to the Company's customers, vendors, and bankers, viz., The Catholic
Syrian Bank Limited, Axis Bank Limited, City Union Bank Limited, Axis
Finance Limited, LIC Housing Finance Limited and HDFC Limited, for
their continued support to the Company during the year. The Directors
also wish to acknowledge the contribution made by employees at all
levels for steering the growth of the organization. We thank the
Government of India, the state governments and other government
agencies for their assistance and cooperation and look forward to their
continued support in future. Finally, the Board would like to express
its gratitude to the members for their continued trust, cooperation and
support.
For and on behalf of the Board of Directors of
LANCOR HOLDINGS LIMITED
S V VENKATESAN R SANKARANARAYANANAN
Director Director
DIN: 00004010 DIN: 00172202
Place : Chennai
Date : 14th August, 2015
Mar 31, 2014
DEAR MEMBERS
The Directors have great pleasure in presenting the Twenty Nineth
Annual Report on the business and operations of your company together
with Audited Accounts of the Company for the year ended 31st March 2014
and the Auditors'' report thereon.
FINANCIAL RESULTS
(Amount in Rs. Lakhs)
Standalone Consolidated
Particulars 2013 - 2014 2012 - 2013 2013 - 2014 2012 - 2013
Total Revenue 8,640.80 7,696.60 13,654.09 7,930.99
Expenditure 4,102.74 4,644.14 8,346.86 5,075.64
EBITDA 4,538.06 3,052.46 5,307.23 2,855.35
Interest 1,925.39 1,529.32 2,237.59 1,576.44
Depreciation 256.73 224.68 269.44 233.45
Profit / (Loss)
before tax 2,355.94 1,298.44 2,800.20 1,045.44
Less : Provision for
Current tax 759.49 373.87 1,046.09 434.86
Deferred tax 0.77 (13.67) 69.87 (157.15)
(Excess) / short
provision of Tax
earlier year 0.00 (0.35) 0.00 (1.26)
Profit / (Loss)
after Tax 1,595.68 938.57 1,684.24 768.99
Minority Interest 0.00 0.00 0.00 0.92
Add : Balance brought
forward from previous
year
(includes Lancor
Projects Ltd) 7,709.36 7,335.35 7,935.19 7,761.90
Less : Prior year
adjustments 0.0 0.00 0.00 30.23
Available for
appropriation 9,305.03 8,273.92 9,618.70 8,499.75
Dividend 405.00 405.00 405.00 405.00
Tax on dividend 68.83 65.70 68.83 65.70
Transfer to
General Reserve 159.56 93.85 159.66 93.86
Balance Carried
to Balance Sheet 8,671.64 7,709.37 8,985.21 7,935.19
BUSINESS OUTLOOK FOR LANCOR HOLDINGS LIMITED, ITS SUBSIDIARIES AND
ASSOCIATE:
The general economy in Financial Year 2013-14 grew at a slower pace at
4.5%. Rising inflation with high interest rates led to contraction in
demand for the real estate sector and the performance on the whole was
very subdued.
The stable government now at the centre with focus on policy
initiatives have spurred positive sentiments in the country. However it
may take a few quarters before the demand picks up in the industry.
Medium to long term (say between 12 to 36 months) demand for real
estate is certain due to demographic advantages, rising income levels
and rapid urbanization.
During the year your company had launched two projects with a total
saleable area of 245308 sft.
Completed Projects: During the financial year 2013-14, your company has
completed the residential project viz "The Coutryard" and handed over
the apartments to the customers.
Ongoing Projects:
1. The Central Park Lake Front (TCPLF), Sholinganallur: The phase I of
the TCPLF consisting of 136 apartments was launched in April 2014 and
as on date of reporting, 64% has already been sold. The construction
has been progressing well and the apartments are expected to be handed
over for interiors to customers in the third quarter of next year.
The building plans for TCPLF Phase II have been submitted to Chennai
Metropolitan Development Authority (CMDA) for approval, which will be
launched by January 2015.
2. Kiruba Cirrus: The construction of Kiruba Cirrus is 90% complete
with the finishing and final development works are under way. This is
the first time ever that a large residential building using glass has
been constructed in Chennai and the building looks very impressive
catering to exclusive market.
The enquiry level for Kiruba Cirrus has been picking up and is expected
to be sold in full as the market picks up say in the next 12 months.
3. Corner Stone and Sonnet Square: These two projects will be
completed during the FY 2014-15.
SUBSIDIARY COMPANIES:
PROJECT COMPANIES:
LANCOR GUDUVANCHERY DEVELOPMENTS LIMITED:
LUMINA: The construction of E & F blocks was completed and the
customers have started living in "Lumina". G block has been opened up
for sale recently. Guduvanchery as a sub-market is well positioned
being more close to GST Road and connected to OMR as well. When the
market picks up with the all the infrastructure viz internal roads,
power supply, DG supply, Sewerage Treatment Plant(STP), Water Treatment
Plant(WTP), Reverse Osmosis Plant (RO), a modern club house, a bus
etc., that are put in place in Lumina will make Lumina sell well
LANCOR SRIPERUMBUDUR DEVELOPMENTS LIMITED:
TOWNSVILLE: The construction of A, B & C blocks are completed and the
apartments are being handed over to the customers. The construction of
D block is under way. Sriperumbudur as a destination is getting focus
with Japanese investments that are expected on NH-4 for
"Chennai-Bangalore Expressway" connecting Chennai and Bangalore, should
boost the sales of Townsville. Sriperumbudur has also been chosen as a
satellite town under the centrally sponsored scheme of the Urban
Infrastructure Development. In order to cater to the employees working
in and around Sriperumbudur, apartments of sizes ranging from 500 sft
to 750 sft are being designed with a price range starting from Rs.12
lakhs per apartment. These ticket sizes should create good interest
levels amongst the end users in Sriperumbudur
LANCOR GST DEVELOPMENTS LIMITED:
The approval for wet land conversion is awaited. The building designs
for the residential development are being drawn and during the current
financial year the same will be submitted to authorities for approval.
SERVICE COMPANIES:
LANCOR MAINTENANCE & SERVICES LIMITED:
The Company (LHL) has completed the projects "The Courtyard",
Nanganallur and E & F blocks of "Lumina", Guduvanchery, which are
handed over to Lancor Maintenance & Services Ltd (LMSL) for facility
management. A,B & C blocks of "Townsville", Sriperumubudur are also in
the process of handing over to the customers, which will also be taken
up for maintenance by LMSL starting last quarter of Financial Year
2014-15. The above mentioned projects will add to the revenue of LMSL
for the current financial year 2014-15. LMSL provides facility
management services to all the new projects of LHL and the growth of
LHL will organically grow LMSL as well
LANCOR REALTY LIMITED:
The office leasing has been picking up slowly and with IT Companies
hiring employees, there will be enough absorption going forward. When
the economy starts showing signs of recovery, the second hand
residential market should also pick up. LRL hence should benefit from
the sale/leasing of office/residential buildings.
ACCOUNTING POLICIES:
The "Kiruba Cirrus" was launched during the year 2012 Â 2013 and
construction is almost complete, due to the revised guidance note
issued by, "The Institute of Chartered Accountants of India", on
accounting for real estate transactions, the revenues for the same
could not be booked. This resulted in deferment of corresponding profit
as well.
NON RESIDENTIAL SEGMENT:
Your company''s focus will continue to remain in residential segment
only as the commercial market is still stressed for rentals.
CREDIT RATING:
CRISIL has Re-affirmed its rating of "BBB " in respect of the companies
long term bank loans.
DIVIDEND:
Your Directors are pleased to recommend dividend of 100% on the Paid-up
capital of the company for approval of the members of the company, i.e.
Rs.2/- per equity share of Rs.2/- each. The final dividend, if approved
by the members would involve a cash outflow of Rs.4,05,00,000/-
(excluding dividend distribution tax).
TRANSFER TO RESERVE:
Pursuant to the Companies (Transfer of Profits to Reserves) Rules 1975,
the company proposes to transfer Rs.1,59,65,933/- to the General
Reserve, out of amount available for appropriation.
FIXED DEPOSITS:
Your Company has not accepted any public deposit from the public or its
employees during the year under review and as such, no amount on
account of principal or interest on public deposits was outstanding as
on the date of the balance sheet.
AMALGAMATION OF LANCOR GST DEVELOPMENTS LIMITED AND LANCOR REALTY
LIMITED WITH COMPANY:
The Board of Directors in its meeting held on 30th May 2014 approved
the scheme of amalgamation of Lancor GST Developments Limited and
Lancor Realty Limited, wholly owned subsidiaries of the company with
the company in accordance with section 391 and 394 of the Companies Act
1956.
Lancor Realty Limited and Lancor GST Developments Limited, wholly owned
subsidiaries of the company are in business of realty services and
development of lands into shops, malls, hotels, service apartments
respectively will be amalgamated with your company and all assets and
liabilities transferred to and vested in the company with effect from
April 01, 2013, the appointed date.
The company has already filed the petition with Hon''ble High Court of
Madras for amalgamation. On receiving the order from the Hon''ble High
Court of Madras, the accounts of the company for the financial year
2013 Â 2014 will be re-stated accordingly to give effect of the merger
as on appointed date i.e April 01, 2013. The re-stated accounts for the
financial year 2013 Â 2014 will be placed before the shareholders.
SUBSIDIARY COMPANIES / ASSOCIATE AND CONSOLIDATED FINANCIAL STATEMENTS:
The company has six subsidiaries viz., Lancor Guduvanchery Developments
Limited, Lancor Sriperumbudur Developments Limited, Lancor GST
Developments Limited, Lancor Egatoor Developments Limited, Lancor
Maintenance & Services Limited, Lancor Realty Limited. There has been
no material change in the nature of the business of the subsidiaries. A
statement containing brief financial details of the subsidiaries is
included in the Annual report.
As required under the listing agreements entered into with the Bombay
Stock Exchange Limited, consolidated financial statements of its
subsidiaries and associate are attached. The consolidated financial
statements have been prepared in accordance with the relevant
accounting standards as prescribed under section 211(3C) of the
Companies Act 1956. These financial statements disclose the assets,
liabilities, income, expenses and other details of the company, its
subsidiaries and associate.
Pursuant to the provisions of section 212(8) of the companies act 1956,
the ministry of corporate affairs vide its circular dated February 08,
2011 has granted general exemption from attaching the balance sheet,
statement of Profit and Loss and other documents of the subsidiaries
with the Balance sheet of the company. A statement containing brief
financial details of the Company''s subsidiaries for the financial year
ended March 31, 2014 is included in the Annual report. The annual
accounts of these subsidiaries and the related detailed information
will be made available to any members of the company / its subsidiaries
seeking such information at any point of time and are also available
for inspection by any member of the company / its subsidiaries at the
registered office of the company. The annual accounts of the said
subsidiaries will also be available for inspection, as above at the
registered office of the respective subsidiary companies. The Company
shall furnish a copy of the details of annual accounts of subsidiaries
to any member on demand.
As required under Companies Act 1956, the statement pursuant to section
212 containing the details required in respect of our subsidiaries
namely, Lancor Guduvanchery Developments Limited, Lancor Sriperumbudur
Developments Limited, Lancor GST Developments Limited, Lancor Egatoor
Developments Limited, Lancor Maintenance & Services Limited, Lancor
Realty Limited as on 31st March 2014 attached here with.
STATUTORY STATEMENTS:
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNINGS AND OUTGO:
Lancor Holdings Limited does not carry on any manufacturing activity
and accordingly the provision to furnish information as per section
217(1)(e) of the Companies Act 1956, read with the Companies
(Disclosure of Particulars in the report of Board of Directors) Rules
1988, particulars relating to Conservation of energy, Research and
Development and Technology Absorption is not applicable.
Foreign Exchange Earnings : Nil
Foreign Exchange Outgo : Rs.3,34,93,596/-
PARTICULARS OF EMPLOYEES
Industrial relations have remained cordial throughout the year in the
company. During the year under review there were no employees covered
under section 217(2A) of the Companies Act 1956.
DIRECTOR''S RESPONSIBILITY STATEMENT
Pursuant to the requirement u/s 217(2AA) of the Companies Act, 1956
with respect to Directors'' Responsibility Statement your Directors to
the best of their knowledge and belief confirm that:
(i) in the preparation of the annual accounts for the year 2013 - 2014,
the applicable Accounting Standards have been followed and there are no
material departure;
(ii) they have selected such accounting policies and applied them
consistently and made judgments and estimates that are reasonable and
prudent so as to give true and fair view of the state of affairs of the
Company at the end of the financial year and of the profit / loss of
the Company for that period;
(iii) they have taken proper and sufficient care for the maintenance of
adequate accounting records in accordance with the provisions of the
Act so as to safeguard the assets of the Company and to prevent and
detect fraud and other irregularities; and
(iv) they have prepared the annual accounts on a going concern basis.
INTERNAL CONTROLS AND THEIR ADEQUACY:
The internal control systems are commensurate to the size of the
operation of the Company. Whenever it is required, the systems and
procedures are upgraded to suit the changing business needs.
STATEMENT PURSUANT TO LISTING AGREEMENT
The company''s securities are listed with Bombay Stock Exchange Limited,
Mumbai and it has paid the respective annual listing fees up-to-date
and there are no arrears.
CORPORATE GOVERNANCE REPORT AND MANAGEMENT DISCUSSION AND ANALYSIS
A detailed report on Corporate Governance as updated with the
particulars of this Financial year, as per the directions from SEBI is
annexed to this report (Annexure A) together with Report of the
Auditors on the compliance with the said Code and a report of
Management Discussion and Analysis is also annexed separately.
DIRECTORATE
In compliance with the provisions of the Companies Act 2013 read with
applicable rules thereof and in accordance with the Article 86 of the
Company''s Articles of Association, Mr.R.V.Shekar and Mr. T.P. Raman,
Directors retire at this Annual General Meeting and being eligible,
offers themselves for re-appointment.
As per Sections 149 and 152 read with Schedule IV and all other
applicable provisions of the Companies Act, 2013 ("the Act") and the
Companies (Appointment and Qualification of Directors) Rules, 2014
(including any statutory modification(s) or re-enactment thereof for
the time being in force) and pursuant to the provisions of Clause 49 of
the Listing Agreement Mr.S.V.Venkatesan, Mr.T.P.Raman,
Mr.R.Sankaranarayanan, Mr.Harmohan Sahni, Non Executive Directors will
be appointed as Independent Directors of the Company for a term of five
years.
Sri. S.Sridharan, who was appointed as Additional Director of the
Company by the board at its meeting held on 13.11.2014 holds office as
such up to the date of ensuing annual general meeting. In terms of 160
of the companies act 2013 read with rule 13 of the companies
(appointment and Qualification of Directors) Rules 2014, the company
has received notice in writing from member signifying his intention
proposing the candidature of Sri.S.Sridharan for the office of Director
of the company and accordingly the Board of Directors recommend the
same for the approval of members.
Brief resume of the Directors, seeking re-appointment, nature of their
expertise as stipulated under clause 49 of the listing agreement with
the Bombay Stock Exchange Limited, is appended to the notice convening
the Annual General Meeting.
AUDITORS
The retiring auditors, M/s.G.M.Kapadia & Co., Chartered Accountants
have expressed their willingness to continue in office, if appointed.
They have furnished to the Company a certificate of their eligibility
for appointment as auditors, pursuant to Section 139 of the Companies
Act, 2013 read together with the Companies (Audit and Auditors) Rules,
2014 and also confirmed that they satisfy the criteria prescribed in
section 141 of the Act.
The Audit committee and the Board of Directors recommend the
re-appointment of M/s.G.M.Kapadia & Co., Chartered Accountant as
Auditors for a period of three years and to fix their remuneration.
The Auditors Report to the Members does not contain any qualification
or adverse remarks.
COST AUDITORS
As per the Companies (Cost Accounting Records) Rules 2011 cost audit is
not applicable on the companies engaged in the construction and / or
development (real estate) business. Hence, these companies are only
required to maintain cost accounting records and file compliance report
with the Central Government. Pursuant to the provision of the Companies
(Cost Accounting Records) Rules 2011, M/s. Shivashankaran & Co., Cost
Accountants have been appointed as Cost Auditor of the company to do
the necessary work and issue the compliance report.
ACKNOWLEDGEMENT
The Directors take this opportunity to thank our Bankers, The Catholic
Syrian Bank, HDFC Limited, Axis Bank Limited, Axis Finance Limited,
City Union Bank Limited, State Government, other statutory bodies for
their unstinted and consistent support to the company. Your Directors
place on the record their appreciation of the dedicated service of the
employees of the Company at all levels for the growth of the company.
For and on behalf of the Board of Directors of
LANCOR HOLDINGS LIMITED
Sd/- Sd/-
R.V.Shekar R.Sankaranarayanan
Chairman Director
Date : November 13, 2014
Place: Chennai - 600 017
Mar 31, 2013
The Directors have great pleasure in presenting the Twenty Eighth
Annual Report on the business and operations of your company together
with Audited Accounts of the Company for the year ended 31st March 2013
and the Auditors'' report thereon.
FINANCIAL RESULTS
(Amount In Rs. Lacs)
Standalone Consolidated
Particulars 2012-13 2011-12 2012-13 2011-12
Total Revenue 7,696.60 8,572.08 7,930.99 10,802.80
Expenditure 4,644.14 5,565.10 5,075.64 7,081.17
EBITDA 3,052.46 3,006.97 2,855.35 3,721.63
Interest 1,529.32 755.80 1,576.44 784.09
Depreciation 224.68 237.96 233.45 249.27
Profit / (Loss)
before tax 1,298.44 2,013.21 1,045.44 2,688.27
Less: Provision for
Current Tax 373.87 607.54 434.86 636.33
Deferred Tax (13.67) (0.96) (157.15) (7.59)
(Excess) / short
provision of Tax
earlier year (0.35) 165.31 (1.26) 938.57
Profit / (Loss) after Tax 938.57 1,241.31 768.9 1,120.96
Minority Interest 0.92 0.31
Add: balance brought
forward from previous
year (Includes
Lancor Projects Ltd) 7,335.35 6,433.42 7,761.90 7,236.11
Less: prior year
adjustments 30.23
Available for
appropriation 8,273.92 7,674.74 8,499.75 8,356.75
Dividend 405.00 405.00 405.00 405.00
Tax on Dividend 65.70 65.71 65.70 65.71
Transfer to General Reserve 93.85 124.13 93.86 124.13
Balance Carried
to Balance Sheet 7,709.37 7,079.89 7,935.19 7,761.90
BUSINESS OUTLOOK FOR LANCOR HOLDINGS LIMITED, ITS SUBSIDIARIES AND
ASSOCIATE:
PROPERTY DEVELOPMENT BUSINESS:
The real estate industry has been under stress due to sluggish economic
growth, rising inflation and over supply at certain locations. The
sentiments being generally weak has caused uncertainty on job security
coupled with rising prices due to inflation etc., has resulted in
deferment of decision by the customers to close out sales. With the
weakening of rupee and high inflation the construction costs are rising
month on month. The political scene is nebulous and is not expected to
change for the better over the next one year which keeps fresh
investments from being made. The Reserve Bank of India''s inability to
have any room for monetary action has now left no room for reduction in
housing finance interest rates, thereby leaving no relief for home
buyers. Hence the general outlook for the year 2013 is very pessimistic
for the Real Estate industry.
Though the economy and industry have been slowing down, the projects of
your company are ideally located in the growth corridors in Chennai viz
OMR, GST Road and Sriperumbudur.
The company and its subsidiaries have currently 9 ongoing projects
aggregating to 78.76 lakhs sq.ft of developable area, out of which
13.45 lakhs sq.ft have been taken up for development in the current
year.
Your company expects the current challenging times on both economic and
business environment to be continuing over the next few quarters.
Therefore it has decided now to focus its energy to faster execution,
which in a few projects are ahead of schedule in order to instill
confidence in prospective customers to make buying decisions.
The Courtyard: "The Courtyard" is the only multi storied building in
Nanganallur, Chennai, has been sold to the extent of 80% and is
expected to be completed by the end of this year with good amount of
revenue and earnings.
Kiruba Cirrus: "Kiruba Cirrus" is a Marquee Multi Storied High Rise
Project in Valasaravakkam, West Chennai, where the construction has
reached the 5th floor. Two Show Apartments are getting ready for view
before launch of the project in the next 2 months. This project comes
with outstanding features like fully Air-conditioned, vacuumized double
glazing to be provided for heat and noise reduction. The Aluminium
structure, which is proposed to be installed, is white anodized, at the
higher levels of Japan''s standard is being used for the first time in
any residential complex in India. This building is expected to be
completed by the end of the financial year 2013-14.
OTHER CITY PROJECTS:
Your company is also developing two more city projects viz. "Sonnet
Square" and "Corner Stone" in the current financial year for which the
responses have so far been impressive.
TOWN & COUNTRY VILLA PROJECT: Your Company had reported about the villa
project "Town & Country" in Sriperumbudur, last year. We are glad to
inform that all the infrastructure with regard to "Town & Country"
Villa Project (First Phase), viz Roads, Street Lights, Water tank,
Sewer lines, Marketing office etc., have been developed in full. The
electricity supply and generator back up for the villas are already in
place. Fifty villas are under construction, out of which fourteen
villas have been completed and are being handed over to the customers.
The construction is in full swing while the project is gaining
considerable attention even before the formal launch, so much so as on
this date nearly 30 villas have been sold. Sriperumbudur is a fast
developing industrial zone and your company is confident of the success
of this project.
The Central Park Lake Front: As stated in the last report, "The Central
Park Lake Front" will be developed on a total land extent of 5.71 acres
and this will be the 4th development in the Central Park series in
Sholinganallur, OMR. The plans are in the advanced stage of approval
and the project is expected to be commenced in the next couple of
months and the customers interest continues to remain high.
All the above projects are developed in the holding company.
SUBSIDIARY COMPANIES: PROJECT COMPANIES:
LANCOR GUDUVANCHERY DEVELOPMENTS LIMITED:
Lumina: During the year, the DTCP approval for "Lumina" was obtained
and 2 blocks out of 8 blocks were opened up for sale. Out of 196
apartments in 2 blocks, more than 50% of the apartments have already
been sold. The construction is going on at a fast pace across four
blocks and it is hoped that all the four blocks will be ready by the
end of this financial year. Though the sales have been slower than our
projection and expectation, with the construction of Show Apartment
that is planned in the next one month, it is hoped that the sales will
pick up.
LANCOR SRIPERUMBUDUR DEVELOPMENTS LIMITED:
Townsville: As reported last year, your company had launched a
residential project named "Townsville", where out of 144 apartments in
5 blocks, 3 blocks were opened for sale with a total of 96 apartments.
Out of 96 apartments, 70% of the apartments have already been sold. The
construction is progressing at a fast pace. The project was launched at
an affordable price of Rs.2,222/- per sft and now the current price is
Rs.2,555/- per sft.
A few major corporates in Sriperumbudur area are showing keen interest
to take up our apartments and villas for their employees. Townsville,
being an affordable project is witnessing interest not only as a good
investment option but also as housing for the employees working in
Sriperumbudur. The company is now drawing plans to acquire some more
lands adjacent to its buildings so that proper land consolidation takes
place.
LANCOR GST DEVELOPMENTS LTD:
As reported last year, your company acquired a group company of L&T
Ltd, which had 6½ acres of premium land at GST Road. This land has a
development potential of more than one million sq.ft and there is an
existing operating school adjacent to this land parcel. This project
will be taken up for development at the end of this financial year,
once all the plans are sanctioned. A multinational IT company has
bought a huge commercial space which is next to our land parcel and
hence the expectation is that the demand for homes from the employees
of IT Company would be significant.
SERVICE COMPANIES:
LANCOR MAINTENANCE & SERVICES LIMITED (LMSL):
As the projects that are being developed by the parent company, Lancor
Holdings Ltd, get completed, commencing from this year, the same will
be handed over to LMSL for maintenance. In the current year, 2 city
projects viz "The Courtyard" and "Kiruba Cirrus" will be handed over to
LMSL for maintenance apart from the maintenance of "Town & Country" in
its entirety as it becomes occupied. In addition, LMSL is also
exploring new non-Lancor business to add to the earnings of the
company.
LANCOR REALTY LIMITED (LRL):
Though the primary market has been sluggish, the secondary market seems
to be promising as the customers are looking at second hand projects,
which are readily available. With the depreciation of rupee, secondary
markets are viewed favourably by NRI''s in order to complete the deals
immediately, hence LRL is better positioned to increase the revenues in
the current year.
LANCOR PROJECTS LIMITED (LPL):
During the year, Lancor Projects Ltd got merged with Lancor Holdings
Ltd and the employees of LPL were absorbed by LHL and the LPL was
dissolved without winding up.
SENIOR CITIZEN HOMES:
Your company is happy to report that it will be starting a new vertical
under the name "Harmonia" to develop homes for senior citizens.
Initially 3 projects viz "Lumina", "The Central Park Lake Front" and
"Town & Country" have been identified where the senior citizen homes
will also be constructed as part of the overall residential project.
The vision is that in the next three to four years, your company would
have developed more than 1,500 senior citizen homes across Chennai city
and elsewhere and is expected to be an active player in this sector.
ACCOUNTING POLICIES:
Though "Lumina", "Townsville" were launched during the year and good
number of units were sold as reported above, due to the revised
guidance note issued by, "The Institute of Chartered Accountants of
India", on accounting for real estate transactions, the revenues for
the same could not be booked. This resulted in deferment of
corresponding profits as well.
NON RESIDENTIAL SEGMENT: Your Company''s focus will continue to remain
in residential segment only as the commercial market is still stressed
for rentals. During the year, the company has constructed a commercial
building of 11,164 sq.ft as a Management Project in a prime area of the
city,
CREDIT RATING:
CRISIL has Re-affirmed its Rating of "BBB " in respect of the Compamies
long term bank loans.
DIVIDEND:
Your directors are pleased to recommend dividend of 100% on the paid-up
share capital of the Company for approval of the members of the
Company, i.e, Rs.2/- per equity share of Rs.2/- each. The final
dividend, if approved by the members would involve a cash outflow of
Rs.4,05,00,000/- (excluding dividend distribution tax).
TRANSFER TO RESERVE:
Pursuant to The Companies (Transfer of Profits to Reserves) Rules,
1975, the Company proposes to transfer Rs.93,85,737- to the General
Reserve, out of the amount available for appropriation.
FIXED DEPOSITS
Your Company has not accepted any public deposit from the public or its
employees during the year under review and as such, no amount on
account of principal or interest on public deposits was outstanding as
on the date of the balance sheet.
AMALGAMATION OF LANCOR PROJECTS LIMITED WITH COMPANY
Pursuant to the scheme of amalgamation in accordance with section 391
and 394 of the Companies Act,1956 and as approved by the Hon''ble High
Court of Judicature at Madras vide its Order dated 17th May 2013 in
C.A.No.219 of 2013, Lancor Projects Limited a wholly owned subsidiary
of the company in the business of property management has been
amalgamated with your Company and all assets and liabilities are
transferred to and vested in the company with effect from April 1,2012
(The Appointed Date) and the Lancor Projects Limited was dissolved
without being wound up.
SUBSIDIARY COMPANIES /ASSOCIATE AND CONSOLIDATED FINANCIAL STATEMENTS:
The Company has six subsidiaries viz, Lancor Maintenance & Services
Limited, Lancor Realty Limited, Lancor Guduvanchery Developments
Limited, Lancor Sriperumbudur Developments Limited, Lancor Egatoor
Developments Limited and Lancor GST Developments Limited. There has
been no material change in the nature of the business of the
subsidiaries. A Statement containing brief financial details of the
subsidiaries is included in the Annual Report.
As required under the listing agreements entered into with the Bombay
Stock Exchange Limited, Consolidated Financial Statements of its
subsidiaries and associate are attached. The Consolidated Financial
Statements have been prepared in accordance with the relevant
accounting standards as prescribed under Section 211(3C) of the
Companies Act, 1956. These financial statements disclose the assets,
liabilities, income, expenses and other details of the Company, its
subsidiaries and associate.
Pursuant to the provisions of Section 212(8) of the Companies Act,
1956, the Ministry of Corporate Affairs vide its circular dated
February 8, 2011 has granted general exemption from attaching the
balance sheet, statement of profit and loss and other documents of the
subsidiaries with the balance sheet of the Company. A Statement
containing brief financial details of the Company''s subsidiaries for
the financial year ended March 31, 2013 is included in the Annual
Report. The annual accounts of these subsidiaries and the related
detailed information will be made available to any member of the
Company / its subsidiaries seeking such information at any point of
time and are also available for inspection by any member of the Company
/ its subsidiaries at the registered office of the Company. The annual
accounts of the said subsidiaries will also be available for
inspection, as above, at the registered offices of the respective
subsidiary companies. The Company shall furnish a copy of the details
of annual accounts of subsidiaries to any member on demand.
As required under Companies Act, 1956, the statement pursuant to
section 212 containing the details required in respect of our
subsidiaries namely, Lancor Maintenance & Services Limited, Lancor
Realty Limited, Lancor Guduvanchery Developments Limited, Lancor
Sriperumbudur Developments Limited, Lancor Egatoor Developments Limited
and Lancor GST Developments Limited as on 31st March, 2013, attached
herewith.
CORPORATE SOCIAL RESPONSIBILITY (CSR)
As part of the CSR activity, your Company has been helping the cause of
music and arts to be propagated by way of sponsoring the music
festivals during the high December and other seasons in Chennai. The
Company has been the main sponsor for four years in succession right
from 2009-10 for the "BHARAT SANGEET UTSAV" conducted by "CARNATICA",
where artists from across India are invited to perform over ten day
long festival in the month of October.
Your Company has also been the main sponsor of music concerts that are
being held in front of the invitee audience for Marghazi Mahotsavam for
15 days conducted by Jaya TV, which was later on telecast by them every
day over next 15 days.
Apart from the above, last year your Company had sponsored December Art
Festival conducted by "Brahma Gana Sabha", Global Music
Festival-Thiruvanmiyur, conducted by "Carnatica" in Association with
Sri Parthasarathy Swami Sabha and December music festival conducted by
"Nada Sudha", Velachery, an important emerging suburb in Chennai.
STATUTORY STATEMENTS
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNINGS AND OUTGO
Lancor Holdings Limited does not carry on any manufacturing activity
and accordingly the provision to furnish information as per Section 217
(1)(e) of the Companies Act, 1956, read with the Companies (Disclosure
of Particulars in the report of Board of Directors) Rules, 1988,
particulars relating to Conservation of energy, Research and
Development and Technology Absorption is not applicable.
Foreign Exchange Earnings : Nil
Foreign Exchange Outgo Rs.53,56,696/-
PARTICULARS OF EMPLOYEES
Industrial relations have remained cordial throughout the year in the
company. During the year under review there were no employees covered
under section 217(2A) of the Companies Act, 1956.
DIRECTORS'' RESPONSIBILITY STATEMENT
Pursuant to the requirement u/s 217(2AA) of the Companies Act, 1956
with respect to Directors'' Responsibility Statement your Directors to
the best of their knowledge and belief confirm that:
(i) in the preparation of the annual accounts for the year 2012-13, the
applicable Accounting Standards have been followed and there are no
material departure;
(ii) they have selected such accounting policies and applied them
Consistently and made judgments and estimates that are reasonable and
prudent so as to give true and fair view of the state of affairs of the
Company at the end of the financial year and of the profit / loss of
the Company for that period;
(iii) they have taken proper and sufficient care for the maintenance of
adequate accounting records in accordance with the provisions of the
Act so as to safeguard the assets of the Company and to prevent and
detect fraud and other irregularities; and
(iv) they have prepared the annual accounts on a going concern basis.
INTERNAL CONTROLS AND THEIR ADEQUACY:
The internal control systems are commensurate to the size of the
operations of the Company. Whenever it is required, the systems and
procedures are upgraded to suit the changing business needs.
STATEMENT PURSUANT TO LISTING AGREEMENT
The company''s securities are listed with Bombay Stock Exchange Limited,
Mumbai and it has paid the respective annual listing fees up-to-date
and there are no arrears.
CORPORATE GOVERNANCE REPORT AND MANAGEMENT DISCUSSION AND ANALYSIS
A detailed report on Corporate Governance as updated with the
particulars of this Financial year, as per the directions from SEBI is
annexed to this report (Annexure A'') together with Report of the
Auditors on the compliance with the said Code and a Report of
Management Discussion and Analysis is also annexed separately.
DIRECTORATE
In compliance with the provisions of the Companies Act, 1956 in
accordance with the Article 86 of the Company''s Articles of
Association, Mrs.Sangeetha Shekar and Mr.S.V.Venkatesan, retire at this
Annual General Meeting and being eligible, offers themselves for
re-appointment.
Mr. Harmohan Sahni and Mr.T.P.Raman who were appointed as Additional
Directors of the Company by the Board at their meeting held on
09.11.2012 and 09.07.2013 respectively hold office as such up to the
date of ensuing Annual General Meeting. In terms of Section 257 of the
Companies Act, the Company has received notice in writing from members
signifying their intention proposing the candidature of Mr.Harmohan
Sahni and Mr.T.P.Raman for the office of Directors of the Company and
accordingly the Board of Directors recommend the same for the approval
of members. Mr.V.Chander and Mr.Jayesh N Thakkar the Directors of the
company had resigned from the Board with effect from 09.11.2012 and
09.07.2013 respectively. The Board wishes to place on record their
sincere appreciation for the valuable contribution and services
rendered to the company during the tenure of their directorship.
Brief resume of the Directors, seeking re-appointment, nature of their
expertise as stipulated under clause 49 of the listing agreement with
the Bombay Stock Exchange Limited, is appended to the notice convening
the Annual General Meeting.
DISCLOSURES OF PARTICULARS OF CONSTITUTING "GROUP" PURSUANT T O
REGULATION 3(1)(E) OF THE SEBI(SUBSTANTIAL ACQUISITION OF SHARES &
TAKEOVERS) REGULATIONS, 1997.
Pursuant to an information from the promoters, the name of the
promoters and entities comprising group as defined under Monopolies and
Restrictive Trade Practice (MRTP) Act, 1969, are as under for the
purpose of the SEBI (Substantial Acquisition of Shares & Takeovers)
Regulations, 1997.
1) Mr. R.V.Shekar, 2) Mr. Shyamala Shekar, 3) Mrs. Sangeetha Shekar and
4) Shwetha Shekar
AUDITORS
The retiring auditors, M/s.G.M.Kapadia & Co., Chartered Accountants
have expressed their willingness to continue in office, if appointed.
They have furnished to the Company a certificate of their eligibility
for appointment as auditors, pursuant to section 224 (1B) of the
Companies Act, 1956.
The Audit committee and the Board of Directors recommend the
re-appointment of M/s.G.M.Kapadia & Co., Chartered Accountant as
Auditors for a further period of one year and to fix their
remuneration.
The Auditors Report to the Members does not contain any qualification
or adverse remarks.
COST AUDITORS
As per the Companies (Cost Accounting Records) Rules, 2011 cost audit
is not applicable on the companies engaged in the construction and/or
development (real estate) business. Hence, these companies are only
required to maintain cost accounting records and file compliance report
with the Central Government.Pursuant to the provision of The Companies
(Cost Accounting Records) Rules, 2011, M/s.N. Shivashankaran & Co.,
Cost Accountants have been appointed as Cost auditor of the company to
do the necessary work and issue the compliance report.
ACKNOWLEDGEMENT
The Directors take this opportunity to thank our Bankers, The Catholic
Syrian Bank, HDFC Limited, Axis Bank Limited, City Union Bank Limited,
State Government, other statutory bodies for their unstinted and
consistent support to the Company. Your Directors place on the record
their appreciation of the dedicated service of the employees of the
Company at all levels for the growth of the company.
For and on behalf of the Board of
Directors of
LANCOR HOLDINGS LIMITED
Place: Chennai R.SANKARANARAYANAN R.V. SHEKAR
Date : May 30,2013 Director Managing Director
Mar 31, 2012
The Directors have great pleasure in presenting the Twenty Seventh
Annual Report on the business and operations of your company together
with Audited financial statement for the year ended 31st March 2012 and
the Auditors' report thereon.
FINANCIAL RESULTS
(Amount in Rs. Lacs)
Particulars Unconsolidated Consolidated
2011-2012 2010-2011 2011-2012 2010-2011
Total Revenue 8,572.08 12,589.99 10,802.80 19,719.43
Less : Expenditure 5,565.10 7,791.51 7,081.17 13,982.94
EBITPA 3,006.97 4,798.48 3,721.63 5,736.49
Less: Interest 755.80 789.15 784.09 827.46
Depreciation 237.96 249.82 249.27 260.27
Profit/(Loss)
before Tax 2,013.21 3,759.51 2,688.27 4,648.76
Less: Provision
for :
Current Tax 607.54 721.41 636.33 814.31
Deferred Tax (0.96) 3.99 (7.59) 9.50
(Excess) / short
provision of Tax 165.31 - 938.57 599.77
of earlier year
Profit/(Loss) after
Tax 1,241.31 3,034.11 1,120.96 3,225.16
Minority interest - - 0.31 0.56
Add: balance
brought forward 4,174.99 7,236.11 4,787.16
6,433,43
from previous year
Less: Prior year
adjustments - - - -
Available for
appropriation 7,674.74 7,209.10 8,356.75 8,011.78
Dividend 405.00 405.00 405.00 405.00
Tax on dividend 65.71 67.27 65.71 67.27
Transfer to
General Reserve 124.13 303.41 124.13 303.40
Balance carried
to Balance sheet 7,079.90 6,433.42 7,761.90 7,236.11
BUSINESS OUTLOOK FOR LANCOR HOLDINGS LIMITED, ITS SUBSIDIARIES AND
ASSOCIATE:
PROPERTY DEVELOPMENT BUSINESS:
RESIDENTIAL SEGMENT: in the last report we had stated that due to
political instability and economic condition that were prevailing in
the country the property development business has been negatively
impacted, although to a reduced extent in the residential development.
Amongst all cities in this country, Chennai, where our company had been
developing properties had been showing some strength as all the
projects taken up by the company, prior to 2011, have been fully sold
and most of them have been completed and handed over to the customers.
The company and its customers had experienced higher interest rate
regime and most unfortunately the high inflation rate with reference to
the building materials and products. Some of the building materials and
commodities had to be procured at unbelievably high price, sometimes in
multiple times of the contracted rates so as to keep up the delivery
schedule committed to the customers.
The company has most recently launched a residential development
project in Sriperumbudur named as "Town & Country" where it has
acquired about 92 acres of land on ownership and Joint Venture basis.
The highlight of the project is that in the next 5 years the company
will be able to construct nearly about 500 villas and offer high rise
apartment buildings of about 4 million sq ft. The concept is to build a
township with all the amenities like roads, street lights, banks and
essential shopping facilities, sports and recreation centre, schools
while providing bus facilities to the residents to vantage points in
the city. it is expected over the next 10 years that this project will
earn very good returns to the company.
The company has launched another project known as "Lumina" in
Guduvanchery. It is expected to have approximately 800 apartments. The
initial response has been gratifying. it is anticipated that by
September - 0ctober'2012 between 25-35% of the apartments will be
booked and thereafter steady sales will occur at regular intervals.
Barring unforeseen circumstances, this project which is competitively
priced will earn good returns for the company
The company has also launched 2 residential projects in the city with
premium specifications and both of them have been received very well
response.
During last year the company had successfully completed "The Central
Park (South)" culminating 3 phases of Central Park projects, with
supply of 535 apartments. The company has now acquired another parcel
of land opposite to "The Central Park" and it is named as
"Central Park (Lake Front)". Barring unforeseen circumstance the
company will be able to add another 300 apartments to The Central park
(Lake Front) thus becoming a dominant force in this area as a developer
of property with provision for maintenance and a modern club.
The company is actively engaged in negotiating with several land owners
in the city for development of their properties.
The company's major residential development known as "Abode
Valley" have been fully sold and nearly 500 apartments out of 700
apartments had been handed over to the customers. it is expected that
the construction will be complete between September and december this
year.
The company has also taken a position to acquire 6-1/2 acres of premium
land at GST Road in respect of which the due diligence is under way. it
has been decided to use this land partially as commercial and the
remaining as residential.
NON RESIDENTIAL SEGMENT: The company has not focused in this segment
due to oversupply of space. However as conditions improve, with its
increasing absorption, the company will certainly venture in this area
of property development.
RISK MANAGEMENT: The risk management is a corner stone of the
management policy, which is mitigation and hedging measures. Factors
such as high inflation, reducing GDP growth, high interest costs and
reducing opportunities weigh heavily in the minds of the management.
SUBSIDIARY COMPANIES:
LANCOR MAINTENANCE & SERVICES LIMITED: Lancor Maintenance & Services
Ltd is providing maintenance services in the case of all major
residential development completed by its parent company for a period of
3 years. By this process LMSL is providing services for Central Park
projects and the Abode Valley apartments besides a few other previously
developed residential projects as well. All in all currently the
company is maintaining about 1000 apartments spread over various
projects while the opportunities to increase the base both within
Lancor development and non-Lancor developments are increasing.
It is gratifying to report that the outstanding from the customers have
been collected while in few cases where difficulties have been
experienced the company is taking sustained measures for recovery of
the amount.
The company maintains about half a dozen commercial projects and it is
earning hand sum returns. Consequent to the change in the top
management of LMSL active efforts are underway to improve the spread
and reach of the company outside Lancor group for increasing the
earnings for the company.
LANCOR REALTY LIMITED: The company for the current year has forecasted
improved performance with reorganization of the management. Main source
of income for the company is to deal with the parent company's
customers for resale, renting and repurchase. The management team is
also forecasting on third party real estate business in the OMR area
and hope to achieve success going forward.
LANCOR PROJECTS LIMITED: Lancor Projects Ltd has obtained 3 contracts
for managing third party projects during the year while taking on more
projects for the company as well. it is proposed to merge Lancor
Projects Limited (LPL) with the Lancor Holdings Limited, with appointed
date being 1st of April 2012 and in this connection the draft scheme of
amalgamation has been drawn and the process of merger has commenced.
The personnel of LPL will be absorbed suitably within Lancor Holdings
Limited based on their designation and position.
LANCOR GUDUVANCHERY DEVELOPMENTS LIMITED: The Project "Lumina" has
been launched as a residential development and application for the
development has already been filed with the Government and we are
awaiting the approval. Barring unforeseen circumstances the company's
project is expected to do well going forward.
LANCOR SRIPERUMBUDUR DEVELOPMENTS LIMITED: The company during the year
under review had purchased approximately 36 Acres of land at
Sriperumbudur. As on this date, the company has drawn plans for
launching the residential project named "Townsville" to initially
construct and sell 144 apartments comprised of five blocks with all
amenities at a most affordable cost.
CREDIT RATING
The Company has been assigned BBB by CRiSiL Limited for Lease rental
discounting loan, long term loan and overdraft facilities availed.
DIVIDEND:
Your directors are now pleased to recommended 100% dividend on the
paid-up share capital of the Company for approval of members i.e,
Rs.2/- per equity share of Rs.2/- each. The final dividend, if approved
by the members would involve a cash outflow of Rs. 4,05,00,000-
(excluding dividend tax).
TRANSFER TO RESERVE
The Company proposes to transfer Rs.12,413,149/- to the General Reserve
out of the amount available for appropriations and an amount of
Rs.64,647,219/- is proposed to be retained in the statement of profit
and loss.
FIXED DEPOSITS
Your Company has not accepted any public deposits from the public or
its employees during the year under review and as such, no amount on
account of principal or interest on public deposits was outstanding as
on the date of the balance sheet.
SUBSIDIARY COMPANIES / ASSOCIATE AND CONSOLIDATED FINANCIAL STATEMENTS
The Company continue to have subsidiaries viz, Lancor Maintenance &
Services Limited, Lancor Realty Limited, Lancor Projects Limited,
Lancor Guduvanchery developments Limited, Lancor Sriperumbudur
developments Limited and Lancor Egatoor developments Limited. There has
been no material change in the nature of the business of the
subsidiaries. A Statement containing brief financial details of the
subsidiaries is included in the Annual Report.
As required under the listing agreements entered into with the Bombay
Stock Exchange Limited, a Consolidated Financial Statements its
subsidiaries and associate is attached. The Consolidated Financial
Statements have been prepared in accordance with the relevant
accounting standards as prescribed under Section 211(3C) of the
Companies Act, 1956. These financial statements disclose the assets,
liabilities, income, expenses and other details of the Company, its
subsidiaries and associate.
Pursuant to the provisions of Section 212(8) of the Companies Act,
1956, the Ministry of Corporate Affairs vide its circular dated
February 8, 2011 has granted general exemption from attaching the
balance sheet, statement of profit and loss and other documents of the
subsidiaries with the balance sheet of the Company. A Statement
containing brief financial details of the Company's subsidiaries for
the financial year ended March 31, 2012 is included in the Annual
Report. The annual accounts of these subsidiaries and the related
detailed information will be made available to any member of the
Company/ its subsidiaries seeking such information at any point of time
and are also available for inspection by any member of the Company/ its
subsidiaries at the registered office of the Company. The annual
accounts of the said subsidiaries will also be available for
inspection, as above, at the registered offices of the respective
subsidiary companies. The Company shall furnish a copy of the details
of annual accounts of subsidiaries to any member on demand.
As required under Companies Act, 1956, the statement pursuant to
section 212 containing the details required in respect of our
subsidiaries namely, Lancor Maintenance & Services Limited, Lancor
Realty Limited, Lancor Projects Limited, Lancor Guduvanchery
developments Limited, Lancor Sripermbedur developments Limited as on
31st March, 2012 and Lancor Egatoor developments Limited as on 31st
december, 2011, attached herewith.
STATUTORY STATEMENTS
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNINGS AND OUTGO
Lancor Holdings Limited does not carry on any manufacturing activities
and accordingly the provision to furnish information as per Section 217
(1)(e) of the Companies Act, 1956, read with the Companies (disclosure
of Particulars in the report of Board of directors) Rules, 1988,
particulars relating to Conservation of energy, Research and
development and Technology Absorption is not applicable.
Foreign Exchange Earnings: Nil Foreign Exchange Outgo: Rs.42,13,681/-
PARTICULARS OF EMPLOYEES
industrial relations have remained cordial throughout the year in the
company. during the year under review there were no employees covered
under section 217(2A) of the Companies Act, 1956.
DIRECTORS' RESPONSIBILITY STATEMENT
Pursuant to the requirement u/s 217(2AA) of the Companies Act, 1956
with respect to directors' Responsibility Statement your Directors to
the best of their knowledge and belief confirm that:
(i) In the preparation of the annual accounts for the year 2011-2012,
the applicable Accounting Standards have been followed and there are no
material departure;
(ii) They have selected such accounting policies and applied them
consistently and made judgments and estimates that are reasonable and
prudent so as to give true and fair view of the state of affairs of the
Company at the end of the financial year and of the profit / loss of
the Company for that period;
(iii) They have taken proper and sufficient care for the maintenance of
adequate accounting records in accordance with the provisions of the
Act so as to safeguard the assets of the Company and to prevent and
detect fraud and other irregularities; and
(iv) They have prepared the annual accounts on a going concern basis.
INTERNAL CONTROLS AND THEIR ADEQUACY:
The internal control systems commensurate to the size of the operation
of the Company. Whenever it is required, the systems and procedures are
upgraded to suit the changing business needs.
STATEMENT PURSUANT TO LISTING AGREEMENT
The company's securities are listed with Bombay Stock Exchange
Limited, Mumbai and it has paid the respective annual listing fees
up-to-date and there are no arrears.
CORPORATE GOVERNANCE REPORT AND MANAGEMENT DISCUSSION AND ANALYSIS
A detailed report on Corporate Governance as updated with the
particulars of this Financial year, as per the directions from SEBI is
annexed to this report (Annexure A') together with Report of the
Auditors on the compliance with the said Code and a report of
Management discussion and Analysis is also annexed separately.
DIRECTORATE
in compliance with the provisions of the Companies Act, 1956 in
accordance with the Article 86 of the Company's Articles of
Association, Mr.V.Chander and Mr.R.Sankaranarayanan, retire at this
Annual General Meeting and being eligible, offer themselves for
re-appointment.
Brief resume of the directors, seeking re-appointment, nature of their
expertise as stipulated under clause 49 of the listing agreement with
the Bombay Stock Exchange Limited, is appended to the notice convening
the Annual General Meeting.
DISCLOSURES OF PARTICULARS OF CONSTITUTING "GROUP" PURSUANT TO
REGULATION 3(1)(E) OF THE SEBI(SUBSTANTIAL ACQUISITION OF SHARES &
TAKEOVERS) REGULATIONS, 1997.
Pursuant to an information from the promoters, the name of the
promoters and entities comprising group as defined under Monopolies and
Restrictive Trade Practice (MRTP) Act, 1969, are as under for the
purpose of the SEBI(Substantial Acquisition of Shares & Takeovers)
Regulations, 1997.
1) R.V.Shekar, 2) Shyamala Shekar, 3) Shwetha Shekar and 4) Sangeetha
Shekar.
AUDITORS
The retiring auditors, M/s.G.M.Kapadia & Co., Chartered Accountants
have expressed their willingness to continue in office, if appointed.
They have furnished to the Company a certificate of their eligibility
for appointment as auditors, pursuant to section 224 (1B) of the
Companies Act, 1956.
The Audit committee and the Board of directors recommend the
re-appointment of M/s.G.M.Kapadia & Co., Chartered Accountant as
Auditors for a further period of one year and to fix their
remuneration.
The Auditors Report to the Members does not contain any qualification
or adverse remarks.
ACKNOWLEDGEMENT
The directors take this opportunity to thank our Banker The Catholic
Syrian Bank, HDFC Limited, State Government, other statutory bodies for
their unstinted and consistent support to the Company. Your directors
place on the record their appreciation of the dedicated service of the
employees of the Company at all levels for the growth of the company.
For and on behalf of the Board of directors of
LANCOR HOLdINGS LIMITED
R.SANKARANARAYANAN R.V. SHEKAR
Director Managing Director
Chennai, May 30, 2012
Mar 31, 2011
The Directors have great pleasure in presenting the Twenty Sixth
Annual Report on the business and operations of your Company together
with Audited Accounts of the Company for the year ended 31st March 2011
and the Auditors report thereon.
Financial Results
The stand-alone financial results of Lancor Holdings Limited for the
year ended March 31, 2011 are presented below:-
(Amount In Rs. Lacs)
Particulars 2010-2011 2009-2010
Income from Operations 12,589.99 10,281.79
Profit before interest,
depreciation and taxes 4,562.62 3,048.45
Less: Interest 553.29 484.19
Depreciation 249.82 276.93
Profit/(Loss) before Tax 3,759.51 2,287.33
Less: Provision for
Current Tax 721.41 687.38
Deferred Tax 3.99 0.15
Profit/(Loss) after Tax 3,034.11 1,599.80
Add: balance brought forward
from previous year 4,174.99 3,209.06
Less: Prior year adjustments - Ã 0.07
Available for appropriation 7,209.10 4,808.79
Interim Dividend à 202.50
Dividend - Final 405.00 202.50
Tax on Dividend 67.27 68.82
Transfer to General reserve 303.41 159.97
Balance carried to Balance sheet 6,433.42 4,174.99
The consolidated financial results of the Company and its Subsidiaries
for the year ended March 31, 2011 are presented below:- (Amount In Rs.
Lacs)
Particulars 2010-2011 2009-2010
Income from operations 19,719.44 11,840.31
Profit before interest,
depreciation and taxes 5,462.74 3,375.89
Less: Interest 553.71 484.44
Depreciation 260.27 292.32
Profit/(Loss) before Tax 4,648.76 2,599.13
Less: Provision for Current Tax 814.31 784.29
Deferred Tax 9.50 (5.66)
Profit/(Loss) after Tax 3,824.94 1,820.15
Short / Excess Provision of tax
for previous years 599.78 Ã
Add: balance brought forward from
previous year 4,787.16 3,600.81
Available for appropriation 8,011.77 5,420.96
Interim Dividend à 202.50
Dividend - Final 405.00 202.50
Tax on Dividend 67.27 68.83
Transfer to General reserve 303.40 159.97
Balance carried to Balance sheet 7,236.10 4,787.16
BUSINESS OUTLOOK FOR LANCOR HOLDINGS LIMITED, ITS SUBSIDIARIES AND
ASSOCIATE:
Your Directors Have Great pleasure In Presenting The Twenty Sixth
Annual Report On The Business And Operations Of Your Company Together
With Audited Accounts Of The Company For The Year Ended 31st March,
2011 And The Auditors Report There On.
CNBC CRISIL CREDAI REAL ESTATE AWARD 2010:
It is very gratifying to report that the Company received the CNBC
AWAAZ CRISIL CREDAI REAL ESTATE AWARDS 2010, under the category "BEST
CONSUMER PROTECTION" for our project "THE CENTRAL PARK WEST", at a
function held in Singapore in April, 2011.
CAPITAL RAISING EFFORTS - PROGRAMME FOR RAISING ADDITIONAL CAPITAL
The Directors felt on the basis of advice given by Merchant banks that
it would be better to defer the programme for raising additional
capital for the time being and wait for opportune time for the
sentiments to improve concerning property development business.
Accordingly the company has decided to defer the programme and look for
alternative means of financing acquisition of new lands for the
development to improve the volume of business.
PROPERTY DEVELOPMENT BUSINESS:
RESIDENTIAL SEGMENT: Last year the company had outlined a bright future
for Residential property development and the performance had been
gratifying. However the events in the last 6 months namely, the very
disturbed political conditions has reverberated to the property
development business negatively and until we have more stable political
and economic situation, the outlook for the property business is not
going to be rosy as one would have expected.
The considerable inflation seen in the economy has lead to stringent
monetary management by the RBI resulting in steep increase in interest
rates both to the company and to its customers who are mainly housing
loan applicants.
Inflation has also brought negative consequences on construction cost
while local government controls on supply and movement of essential
items namely sand, bricks etc has disturbed the equilibrium resulting
increase in prices.
Your company has acquired more projects for development in the last 5-6
months which gives a very positive business outlook.
Your company has acquired 92 acres of land for development both on
outright and joint venture basis in Sriperumbudur which is thought of
as destination of future. This is quite possible with the new
international Airport to be situated in the vicinity and most of the
manufacturing units namely Automobile companies, Auto Ancillary Units,
Tyre Companies, Electronic & Telecom Industry set up being part of the
Sriperumbudur, Oragadam area. Sriperumbudur is already becoming a
strong case for being developed into a satellite township.
The company has also positioned itself for future development on the
GST Road. The new parcel of land for residential project is within 4 to
5 kms of Abode Valley project and is expected to produce outstanding
results.
The company has 2 projects to its pipeline in the Old Mahabalipuram
Road area and it has successfully completed construction of 550
apartments known as The Central Park in this area.
In terms of development in the suburbs, these various projects would
give a constructable space of nearly 7 million sq.ft.
NON-RESIDENTIAL SEGMENT:
Your Company has opportunity to develop 2 or 3 city non residential
locations and the proposals for development of such plots are under
consideration with the owners. The continued policy of the company in
the matter of development of non residential city projects is not to
dispose of such developed non residential project to book profit but to
retain them for rental income and capital appreciation. As can be seen
from recent commercial developments by the company namely Menon
Eternity and Roma, though such investment strain the companys finance
in the initial stage, the longer term benefits of steady rental income
and capital appreciation need not be overemphasized. It is expected
that in the next 5 years the companys holding of non residential
property would have doubled in stock from 134,000 sq.ft to 250,000
sq.ft.
Although whatever has been stated above gives a healthy outlook for the
future, the immediate future mainly for the year 2011-2012 is not
expected to be bright since the company is experiencing difficulties in
starting of various projects because of delay in obtaining sanction
from various government departments. The main reason for this delay in
action by the Government is due to election held in the State of
Tamilnadu followed by total change of government and also reshuffle of
officials in various departments. Due to the above circumstances the
companys turnover for the current year may just be around Rs.150
Crores instead of Rs.250 crores that is originally thought of as
achievable.
SUBSIDIARY COMPANIES:
LANCOR MAINTENANCE & SERVICES LIMITED (LMSL) :
Over the next few years the number of apartments which LMSL will
maintain is expected to cross 3000 in all which will boost revenues of
the company. Significant contributions are also expected from the
commercial properties that are owned by the company and maintained by
LMSL. As operations increase, but remain within the geographical
territory of Chennai, it is quite likely that services provided by LMSL
will broaden beyond the parent companys projects to projects developed
by others. The breadth of services rendered are also likely to get
expanded. Special emphasis is being made for training of employees and
for this purpose a training centre is proposed in the vicinity of one
of the projects.
LANCOR REALTY LIMITED (LRL) :
The outlook for LRL continues to remain bright in view of developed
property volumes made by the parent company increase from year to year.
Opportunity for third party transactions coupled with increased
commercial property placements, no doubt is a bright spot for the
future. Strengthening of the companys management is being given
serious attention and hopefully more energetic team will be in place
soon.
LANCOR PROJECTS LIMITED (LPL):
Last year has been relatively difficult period for LPL in view of
severe challenges on construction cost management, labour productivity
and major supply chain issues covering supply of very essential items
like sand, bricks etc. The LPL senior management is now seized in
finding solution for these difficulties and challenges while at the
same time improving contracting practices at more acceptable prices.
LANCOR GUDUVANCHERY DEVELOPMENTS LIMITED (LGDL):
The outlook for LGDL is bright, since it proposes to develop, the 8.15
acres of land purchased in the name of the company as a residential
development with very good margin. On the basis of allowable FSI on
this land, LGDL can build approximately 7.25 lakhs sq.ft of super built
up area which would facilitate construction and maintenance of 600
apartments of 1200 sq.ft of average size for which good demand exists
at a reasonable price. LGDL also proposes to purchase another 7 acres
of adjoining land, which would yield further development of another
approximately 550 apartments leading to the companys continued
presence in Guduvanchery for a minimum period of 5 years.
DIVIDEND:
Your Directors are now pleased to recommended 100% Dividend on the
paidup share capital of the Company i.e., Rs.2/- per equity share of
Rs.2/- each.
FIXED DEPOSITS, LOANS & ADVANCES
Your Company has not accepted any deposit from the public or its
employees during the year under review.
CONSOLIDATED FINANCIAL STATEMENTS
In accordance with accounting standard AS-21 on Consolidated Financial
Statements read with Accounting Standard AS-23 on Accounting for
Investment in Associates and AS-27 on Financial Reporting of Interest
in Joint Ventures, the audited Consolidated Financial Statements are
provided in the Annual Report.
SUBSIDIARY COMPANIES AND ASSOCIATE:
Further to strengthen Companys presence in sub-urban areas like
GUDUVANCHERY, EGATOOR AND SRIPERUMBUDUR your Company has incorporated
three subsidiaries viz. LANCOR GUDUVANCHERY DEVELOPMENTS LIMITED,
LANCOR EGATOOR DEVELOPMENTS LIMITED and LANCOR SRIPERUMBUDUR
DEVELOPMENTS LIMITED and obtained Certificate of commencement of
business from Registrar of Companies, Chennai respectively on
02.12.2010, 09.04.2011 and 22.04.2011.
As required under Section 212 of the Companies Act, 1956 the statement
pursuant to section 212 of the Companies Act, 1956 along with the
Audited Balance Sheet and Profit and Loss Account along with the
respective reports of the Board of Directors and the Auditors Reports
thereon of the Subsidiary companies viz, LANCOR MAINTENANCE & SERVICES
LIMITED, LANCOR REALTY LIMITED, LANCOR PROJECTS LIMITED and LANCOR
GUDUVANCHERY DEVELOPMENTS LIMITED for the year ended March 31, 2011 are
attached.
STATUTORY STATEMENTS
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNINGS AND OUTGO
Lancor Holdings Limited does not carry on any manufacturing activities
and accordingly the provision to furnish information as per Section 217
(1)(e) of the Companies Act, 1956, read with the Companies (Disclosure
of Particulars in the report of Board of Directors) Rules, 1988,
particulars relating to Conservation of energy, Research and
Development and Technology Absorption is not applicable.
Foreign Exchange Earnings: Rs. Nil.
Foreign Exchange Outgo: Rs. 1,73,36,709-
PARTICULARS OF EMPLOYEES
Industrial relations have remained cordial throughout the year in the
Company. During the year under review there were no employees covered
under section 217(2A) of the Companies Act, 1956.
DIRECTORS RESPONSIBILITY STATEMENT
Pursuant to the requirement u/s 217(2AA) of the Companies Act, 1956
with respect to Directors Responsibility Statement your Directors to
the best of their knowledge and belief confirm that:
(i) in the preparation of the annual accounts, the applicable
Accounting Standards and given proper explanation relating to material
departure;
(ii) they have selected such accounting policies and applied them
consistently and made judgments and estimates that are reasonable and
prudent so as to give 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;
(iii) they have taken proper and sufficient care for the maintenance of
adequate accounting records in accordance with the provisions of the
Act so as to safeguard the assets of the Company and to prevent and
detect fraud and other irregularities; and
(iv) they have prepared the annual accounts on a going concern basis.
INTERNAL CONTROLS AND THEIR ADEQUACY:
The internal control systems are commensurate to the size of the
operations of the Company. Whenever it is required, the systems and
procedures are upgraded to suit the changing business needs.
STATEMENT PURSUANT TO LISTING AGREEMENT
The Companys securities are listed with Bombay Stock Exchange Limited,
Mumbai and it has paid the annual listing fees up-to-date and there are
no arrears.
CORPORATE GOVERNANCE
A detailed report on Corporate Governance as updated with the
particulars of this financial year, as per the directions from SEBI is
annexed to this report (Annexure A) together with Report of the
Auditors on the compliance with the said Code and a Report of
Management discussion and Analysis is also annexed separately.
DIRECTORATE
In compliance with the provisions of the Companies Act, 1956 in
accordance with the Article 86 of the Companys Articles of
Association, Mr.Jayesh N Thakkar, retires at this Annual General
Meeting and being eligible, offers himself for re-appointment.
The Board of Directors at their meeting held on 02-12-2010 had
appointed Mrs.Sangeetha Shekar as an Additional Director pursuant to
the provisions of section 260 of the Companies Act, 1956, read with
Article No.86 of the Articles of Association of the Company to hold
office as such till the conclusion of the ensuing Annual General
Meeting. In terms of Section 257 of the Companies Act, the Company has
received a notice in writing from a member signifying his intention to
propose the candidature of Mrs.Sangeetha Shekar for the office of
Director of the Company. Your Directors recommend the resolution as set
out in item No.5 of the notice convening annual general meeting for
approval of the shareholders
Brief resume of the Directors, seeking re-appointment, nature of their
expertise as stipulated under clause 49 of the listing agreement with
the Bombay Stock Exchange Limited, is appended to the notice convening
the Annual General Meeting.
DISCLOSURES OF PARTICULARS OF CONSTITUTING "GROUP" PURSUANT TO
REGULATION 3(1)(E) OF THE SEBI(SUBSTANTIAL ACQUISITION OF SHARES &
TAKEOVERS) REGULATIONS, 1997.
Pursuant to an information from the promotes, the name of the promoters
and entities comprising group as defined under Monopolies and
Restrictive Trade Practice (MRTP) Act, 1969, are as under for the
purpose of the SEBI(Substantial Acquisition of Shares & Takeovers)
Regulations, 1997.
1) R.V.Shekar, 2) Shyamala Shekar, 3) Swetha Shekar and 4) Sangeetha
Shekar.
AUDITORS
The retiring auditors, M/s.G.M.Kapadia & Co., Chartered Accountants
have expressed their willingness to continue in office, if appointed.
They have furnished to the Company a Certificate of their eligibility
for appointment as auditors, pursuant to section 224 (1B) of the
Companies Act, 1956.
The Audit committee and the Board of Directors recommend the
re-appointment of M/s.G.M.Kapadia & Co., Chartered Accountant as
Auditors for a further period of one year and to fix their
remuneration.
The Auditors Report to the Members does not contain any qualification
or adverse remarks.
FINANCIAL INFORMATION OF SUBSIDIARY COMPANIES
(Figures in Indian Currency)
Sl. Name of the Subsidiary Reporting Total
No- Company Currency Capital Reserves Assets
1. Lancor Maintenance &
Services Ltd INR 2,517,500 32,526,249 35,043,749
2. Lancor Realty Ltd INR 500,000 19,747,576 20,247,576
3. Lancor Projects Ltd INR 500,000 32,781,622 33,281,622
4. Lancor Guduvanchery
Developments Ltd INR 500,000 Nil 100,784,316
Sl. Total Turnover/ Provision
No. Liabilities Investments Total for after
Income Taxation
1. 35,043,749 29,356,920 69,280,170 3,429,344
2. 20,247,576 13,021,768 18,319,740 2,164,177
3. 33,281,622 10,652,867 29,554,860 4,102,109
4. 100,784,316 Nil Nil 16,365
Sl. Profit Proposed Country
No. after Dividend
Taxation
1. 8,002,179 N.A. INDIA
2. 5,243,672 N.A. INDIA
3. 5,924,022 N.A. INDIA
4. (64,339) N.A. INDIA
ACKNOWLEDGEMENT
The Directors take this opportunity to thank our Banker Catholic Syrian
Bank, HDFC Limited, State Government, other statutory bodies for their
unstinted and consistent support to the Company. Your Directors place
on the record their appreciation of the dedicated service of the
employees of the Company at all levels for the growth of the Company.
For and on behalf of the Board of Directors of
LANCOR HOLDINGS LIMITED
R Sankaranarayanan R.V. Shekar
Director Managing Director
Place : Chennai
Dated : 10th day of June 2011
Mar 31, 2010
The Directors have great pleasure in presenting the Twenty Fifth
Annual Report on the business and operations of your Company together
with Audited Accounts of the Company for the year ended 31st March 2010
and the Auditors report thereon.
Financial Results
The stand-alone financial results of Lancor Holdings Limited for the
year ended March 31, 2010 are presented below:-
(Amount In Rs. Lacs)
Particulars 2009-2010 2008-2009
Income from operations 10,281.79 13,513.82
Profit before interest, depreciation
and taxes 3,048.45 3,841.54
Less: Interest 484.19 255.18
Depreciation 276.93 130.66
Profit/(Loss) before Tax 2,287.33 3,455.70
Less: Provision for
Current Tax 687.38 320.00
Deferred Tax 0.15 (10.76)
Fringe Benefit Tax - 2.31
Profit/(Loss) after Tax 1,599.80 3,144.16
Add: balance brought forward from
previous year 3,209.06 621.11
Less: Prior year adjustments - 0.07 5.42
Adjusted for Transitional Provision under AS-15
Available for appropriation 4,808.79 3,759.85
Interim Dividend 202.50 -
Dividend - Final 202.50 202.50
Tax on Dividend 68.82 34.42
Transfer to General reserve 159.97 313.87
Balance carried to Balance sheet 4,175.00 3,209.06
Business outlook for Lancor Holdings Limited, its subsidiaries and
Associate :
Your Directors have great pleasure in presenting the Twenty Fifth
Annual Report on the business and operations of your Company together
with Audited Accounts of the Company for the year ended 318t March,
2010 and the Auditors Report thereon.
SILVER JUBILEE YEAR :
This year happens to be the 25th year of Incorporation of the Company,
the event was celebrated over,two days in Chennai which was widely
reported in the press. The Company gave away long service awards to its
employees, associates and contractors who had served the Company in the
period.
A high point of the celebration was a stage performance of a gathering
of nearly 1,000 customers with their family members besides business
associates which culminated in a dinner function.
The picture taken on the occasion of Silver Jubilee function held on
December 25, 2009 at Hotel Taj Coromandel, Chennai.
[ Left to Right ] - Mr. Shamsunder Aggarwal-Chairman DBS Group, Mr.
Venkatrama Raja-Vice Chairman, Ramco Group, Mr. N Sankar-Chairman
Sanmar Group, Mr. R V Shekar, Managing Director Lancor Holdings Limited
& CA. Mallika Ravi, Group Chief Executive Officer, Lancor Holdings
Limited.
CNBC CRISIL CREDAI AWARD:
It is very gratifying to report that the Company was adjudged as the
most transparent Company in India in the Real Estate business in an
open competition adjudged by CRISIL. Atrophy was presented to the
Company by the Honourable Union Minister for Housing, Kumari Selja in
Dubai.
The Picture shows our Chief Operating Officer, Mr. V K Ashok receiving
the CNBC CRISIL CREDAI AWARD for HIGHEST TRANSPARENCY from Honble
Union Minister for Housing, Kumari Selja.
CAPITAL RAISING EFFORT:
PROGRAMME FOR RAISING ADDITIONAL CAPITAL:
You are aware that we had sought the shareholders approval at an
Extra-Ordinary General Body Meeting held on 11th December 2009 for
issuance of additional capital with premium subject to a limit of Rs.
75.00 crores to augment the capital base of the Company. Unfortunately,
due to stringent controls imposed by the Reserve Bank of India and the
Government of India, investment of funds in property development
companies by banking and financial institutions is severely controlled
while the risk aversion have been the dominant factors for Mutual and
Private equities funds. This has narrowed down the opportunity for
successfully completing the QIP process which is slated to open for
subscription on 14/06/2010. However, since the funds that has been
raised are to be used for expansion of the business, its non-
availability immediately will not hamper the current operations of the
Company.
The industry in respect of residential developments has been segmented
between city development, near suburban development and distant
suburban development. The Company participates in all the three
segments primarily in South, South Eastern and Central Chennai, apart
from isolated developments in other areas of the city.
The Companys customers fall in all the three categories as above, who
belong to middle and upper middle salaried class, who are educated or
self-employed businessmen.
The completion of "The Central Park" projects involving two phases
viz., "The Central Park" and "The Central Park West" where more than
350 families have now occupied the premises, has given a great boost to
Companys credibility in terms of its performance Versus promises while
the construction of an exclusive State-of-the-art Sports Centre with
gymnasium, swimming pool etc., has positioned the project and the
Company very favourably in the eyes of its customers.
The "Abode Valley"ÃAffordable Homes project and "The Central Park"
premium project have been well received mainly because of good
understanding displayed by the Company in the segmentation of the
market so much so, an apartment from the Company is available to an
intending buyer between Rs. 30.00 lakhs to Rs. 70.00 lakhs with break
point of Rs. 5.00 lakhs price bands. The premium segment city projects
have all been completed and the Company is actively pursuing
acquisition of fresh lands for new projects which should be achieved in
the next few months.
PROPERTY DEVELOPMENT BUSINESS:
RESIDENTIAL SEGMENT:
The outlook for the Company in the year going forward is extremely
bright having regard to good sales achieved in both the large projects
viz., "Abode Valley" and "The Central Park South". Barring unforeseen
circumstances, the Company will achieve its highest turnover for the
year ending March, 2011. The profitability of the operations also will
be the highest ever achieved and this is based on completed sales as on
the date of this report.
"Abode Valley" - Affordable Segment:
The nightmares of cancellations reported last year are over and the
first phase of "Abode Valley" is nearly fully sold while the response
for the second phase which opened in April this year has been good. The
whole of the second phase and part of the third phase would be offered
for sale during the current year. Barring unforeseen circumstances, the
sales of these phases should take place favourably with profitability
being maintained since budgeted realizations are being achieved
PREMIUM SEGMENT:
"THE CENTRAL PARK SOUTH"
The third phase of "The Central Park" project was launched in
November-December, 2009 and as of date, nearly 2/3rd of the project has
been sold with large advances having been collected from the customers.
The balance of about approximately 60 apartments would also be placed
in the market in the next three to four months leading to full sales
being achieved in respect of "The Central Park South". The Company has
achieved an average realization in line with the budget and is likely
to face a minor cost increase and also increased interest cost over
budget in respect of land purchased. However, the bottom line should be
in line with the expectations since the balance apartments to be sold
will certainly achieve better realization, thereby augmenting the
average realization.
LUXURY SEGMENTS:
The Company is implementing one luxury segment project in the city and
is in the process of finalizing another property for development, to be
offered as "Villas" in the near future. However, these are all small
projects and more efforts are being put to identify a number of medium
size lands in city for luxurious development preferably on a joint
venture basis. These efforts will bear fruits soon, since the Company
enjoys great reputation for fair play and style of developments in the
city.
NON-RESIDENTIAL SEGMENT:
The Company completed all the non-residential projects in the previous
year and has now re-organized a separate Division under the leadership
of an experienced General Manager to take on in a focused manner the
development and management of non-residential projects going forward.
All the commercial properties owned by the Company have been leased on
an extremely advantageous terms to select customers.
The Company is actively involved in the development of new commercial
projects having aggregate area of 50,000 Ã 100,000 sq. ft. which it
will own and lease for fixed income purposes.
DIVIDEND:
Your Directors recommended an interim dividend of Re. 1/- per share in
view of the Silver Jubilee Year of the Company which was paid out in
the month of January 2010. Your Directors are now pleased to recommend
a further dividend of Re.1/- per equity share as a final dividend,
taking the total distribution for the entire year at 100% of the paid
up capital of the Company of Rs. 21- per share.
CAPITAL STRUCTURE:
In terms of the Scheme of Amalgamation sanctioned by the Honble High
Court having Judicature at Chennai, the Authorised Capital of Lancor
G:Corp Properties Limited, the Transferor Company stood combined with
that of your Company. Consequently the Authorised Capital of the
Company stands increased from Rs. 5.00 crores to Rs. 15.00 crores. The
issued, subscribed and paid up Share Capital of the Company remained
unchanged
SOCIAL RESPONSIBILITIES OF YOUR COMPANY:
Your Company continues to be involved in constructing class rooms and
other school related infrastructure to the under privileged sections of
the society working along with the "Sarva Shiksha Abhiyan Programme"
and The Round Table India.
During this year, the Company in association with M/s. Ford India
Limited and The Round Table India, is planning to add 1500 sq. ft. an
additional "Accident Relief Treatment Beds" located in the vicinity of
our project "Abode Valley". The facility is known as "SANJEEVINI". The
cost of construction of this facility will be borne by the Company.
Fixed Deposits, Loans & Advances
Your Company has not accepted any deposits from the public or its
employees during the year under review.
Subsidiary Companies and Associate:
As required under Section 212 of the Companies Act, 1956 the statement
pursuant to section 212 of the Companies Act, 1956 along with the
Audited Balance Sheet and Profit and Loss Account along with the
respective reports of the Board of Directors and the Auditors Report
thereon of the Subsidiary Companies viz, LANCOR MAINTENANCE & SERVICES
LIMITED, LANCOR REALTY LIMITED and LANCOR PROJECTS LIMITED for the year
ended March 31, 2010 are attached.
As per the requirement of AS-21/27 issued by the ICAI, your Company is
pleased to present here with the consolidated balance sheet, profit and
loss account and cash flow statement of the Company and its
subsidiaries.
STATUTORY STATEMENTS
Conservation of Energy, Technology Absorption and Foreign Exchange
Earnings and Outgo
Lancor Holdings Limited does not carry on any manufacturing activities
and accordingly the provision to furnish information as per Section 217
(1)(e) of the Companies Act, 1956, read with the Companies (Disclosure
of Particulars in the report of Board of Directors) Rules, 1988,
particulars relating to Conservation of energy, Research and
Development and Technology Absorption is not applicable.
Foreign Exchange Earnings: NIL
Foreign Exchange Outgo Rs. 1,21,14,033-
Particulars of Employees
Industrial relations have remained cordial throughout the year in the
Company.
In terms of the provisions of Section 217(2A) of the Companies Act,
1956 read with the Companies (Particulars ol Employees) Rules, 1975,
the name and other particulars of employee are set out below :-
Name Mr.R.V.Shekar
Designation and Nature of Duties Managing Director
Remuneration (Rs.) 25,69,495-
Qualification
He is a Commerce Graduate and a member of the Institute of Chartered
Accountants of India and also a member of the Institute of Company
Secretaries of India.
Date of Commencement of Employment 1 -1 -1991
Experience (Years) 39 years.
Age (Years) 60 years.
Last Employment held Vice President in Sanmar Properties & Investments
Ltd.
Remarks
Directors Responsibility Statement
Pursuant to the requirement u/s 217(2AA) of the Companies Act, 1956
with respect to Directors Responsibility Statement your Directors to
the best of their knowledge and belief confirm that:
(i) in the preparation of the annual accounts, the applicable
Accounting Standards and given proper explanation relating to material
departure;
(ii) they have selected such accounting policies and applied them
consistently and made judgments and estimates that are reasonable and
prudent so as to give 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;
(iii) they have taken proper and sufficient care for the maintenance of
adequate accounting records in accordance with the provisions of the
Act so as to safeguard the assets of the Company and to prevent and
detect fraud and other irregularities; and
(iv) they have prepared the annual accounts on a going concern basis.
Internal Controls and their Adequacy:
The internal control systems are commensurate to the size of the
operation of the Company. Whenever it is required, the systems and
procedures are upgraded to suit the changing business needs.
Statement Pursuant to Listing Agreement
The Companys securities are listed with Bombay Stock Exchange Limited,
Mumbai and it has paid the respective annual listing fees up-to-date
and there is no arrears.
Code of Corporate Governance
A detailed report on Corporate Governance as updated with the
particulars of this Financial year, as per the directions from SEBI is
annexed to this report (Annexure A) together with Report of the
Auditors on the compliance with the said Code and a report of
Management discussion and Analysis is also annexed separately.
Directorate
In compliance with the provisions of the Companies Act, 1956 in
accordance with the Article 86 of the Companys Articles of
Association, Mr. S.V.Venkatesan, retires at this Annual General Meeting
and being eligible, offers himself for re-appointment.
Brief resume of the Directors, seeking re-appointment including the
re-appointments of Managing Director, nature of their expertise as
stipulated under clause 49 of the listing agreement with the Bombay
Stock Exchange Limited, is appended to the notice convening the Annual
General Meeting.
Disclosures of Particulars of Constituting "Group" pursuant to
Regulation 3(1 )(e) of the SEBI(Substantial Acquisition of Shares &
Takeovers) Regulations, 1997.
Pursuant to an information from the promoters, the name of the
promoters and entities comprising group as defined under Monopolies and
restrictive Trade Practice (MRTP) Act, 1969, are as under for the
purpose of the SEBI(Substantial Acquisition of Shares & Takeovers)
Regulations, 1997.
1) R.V Shekar, 2) Shyamala Shekar, 3) Swetha Shekar and 4) Sangeetha
Shekar. Auditors
The retiring auditors, M/s. G.M.Kapadia & Co., Chartered Accountants
have expressed their willingness to continue in office, if appointed.
They have furnished to the Company, a certificate of their eligibility
for appointment as auditors, pursuant to section 224 (1B) of the
Companies Act, 1956.
The Audit committee and the Board of Directors recommend the
re-appointment of M/s.G.M.Kapadia & Co., Chartered Accountants, as
Auditors for a further period of one year and to fix their
remuneration.
The Auditors Report to the Members does not contain any qualification
or adverse remarks.
Acknowledgement
The Directors take this opportunity to thank our Banker Catholic Syrian
Bank, HDFC Limited, State Government, other statutory bodies for their
unstinted and consistent support to the Company. Your Directors place
on the record their appreciation of the dedicated service of the
employees of the Company at all levels for the growth of the Company.
For and on behalf of the Board of Directors of
Lancor Holdings Limited
R.V. SHEKAR
Managing Director
Place : Chennai
Dated: 14th day of June 2010
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