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Directors Report of National Buildings Construction Corporation Ltd. Company
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Directors Report of National Buildings Construction Corporation Ltd.

Mar 31, 2015

Dear Members,

The Directors are pleased to present the 55th Annual Report and the Audited Financial Statements for the Financial Year ended March 31,2015.

FINANCIAL HIGHLIGHTS

The financial highlights for the year under review are as follows:

REVENUE 2014-15

Consolidated Standalone

Turnover 4632.88 4621.00

Other Operating Revenue 41.26 41.14

Other Income 147.14 146.58

Total Revenue (1) 4821.28 4808.72

EXPENDITURE

Land Cost & Material consumed 179.65 179.63

Increased/(decrease) in stock 119.16 109.26

Work & Consultancy Expences 3834.81 3834.84

Employees Benefit Expenses 195.25 195.14

Finance cost 40.25 40.25

Depreciation 2.34 2.34

Other Expenses 52.66 51.94

Write offs 4.32 4.32

Prior Period Expenses - -

Total Expenses 4428.44 4417.72

Profit Before Tax (PBT) 392.84 391.00

Tax expense

i) Current Tax 110.73 109.87

ii) Deferred Tax 3.83 3.83

Profit After Tax (PAT) 278.28 277.30

Appropriations:

Transfer to General Reserve 55.46 55.46

Proposed Dividend 66.00 66.00

Dividend Distribution Tax 13.44 13.44

REVENUE (Rs.in Crore)

2013-14

Turnover Consolidated Standalone

Other Operating Revenue 4038.70 4008.77

Other Income 31.40 30.97

Total Revenue (1) 134.27 133.26

EXPENDITURE 4204.37 4173.00

Land Cost & Material consumed

Increased/(decrease) in stock 337.71 337.71

Work & Consultancy Expences 88.05 88.05

Employees Benefit Expenses 3168.89 3153.22

Finance cost 182.10 182.10

Depreciation 22.38 22.38

Other Expenses 1.35 1.35

Write offs 47.19 47.12

Prior Period Expenses 7.51 7.51

Total Expenses 0.04 0.04

Profit Before Tax (PBT) 3855.22 3839.48

Tax expense 349.15 333.52

i) Current Tax

ii) Deferred Tax 105.59 100.27

Profit After Tax (PAT) (13.89) (13.89)

Appropriations: 257.45 247.14

Transfer to General Reserve

Proposed Dividend 49.43 49.43

Dividend Distribution Tax 60.00 60.00

10.55 10.55

New Business secured 7012.96 4932.68

Balance work in hand 18181.18 15427.36

OPERATIONS AND BUSINESS PERFORMANCE

Consolidated

During the year under review Company''s total income from operations increased by 14.84 % i.e. to Rs. 4674.14 cr as compared to Rs 4070.10 cr previous year and Profit after Tax increased by 8.09 % i.e. to Rs. 278.28 cr against previous year pat of Rs 257.45 Cr.

Standalone

During the year under review Company''s total income from operations increased by 15.41% i.e. 4662.14 cr as compared to Rs. 4039.74 cr previous year. Net profit after tax also increased by 12.20% i.e. to Rs. 277.30 cr as compared to Rs. 247.14 cr previous year.

DIVIDEND

Your Directors have recommended equity dividend of Rs. 5.50 per paid-up equity share of face value Rs. 10/- each (i.e. @55%) for the financial year 2014-15, subject to the approval of the Members in the ensuing Annual General Meeting. The total dividend payable works out to Rs. 66 crore (excluding dividend distribution tax of Rs. 13.44 crores).

The dividend payout has been recommended considering the deployment of Company''s internal accruals for growth plans.

MOU PERFORMANCE

NBCC is signing MOU with the Ministry of Urban Development since 1992-93. The performance of NBCC has been rated "EXCELLENT" by the Department of Public Enterprises for all the years except 2012-13, in which we rated "Very Good".

NBCC signed Memorandum of Understanding (MoU) for the FY 2014-15 with MoUD and the following targets had been laid down for the financial year 2014-15.

(Rs. in Crore) 1. TARGET 2014-15 (As per MOU with the Ministry - BT (Basic Target)

(i) Turnover : 3800

(ii) Development of work load / Order Book : 4500

(iii) Profitability

a) Gross Margin : 310.68

b) Net Profit : 201.02

(iv) Revision of target during the financial year, if any, give details : nil

2. ACHIEVEMENT 2014-15

(i) Turnover : 4632.89

(ii) Development of work load / Order Book (as on 31.03.2015) : 7012.96

(iii) Constraints in achieving the targets : -

(iv) % age increased in growth rate over the previous years (turnover) : 14.71%

For the year 2014-15 based on the MoU parameters, NBCC is likely to be slated "Excellent".

ORDER BOOK

At the beginning of the financial year 2014-15 opening work order in hand was Rs.15427.36 crore and New orders of Rs.7012.96 crore were procured and work of Rs. 4259.14 crore was executed, thus balance work order of Rs. 18181.18 crore remained at the close of the financial year 2014-15.

PUBLIC WORK ORGANISATION

Your Company has been notified as a Public Work Organisation (PWO) construction agency covered under revised Rule 126(2) of GFRs by virtue of which government department(s), PSUs and autonomous bodies award works on nomination basis.

Iso certification

Your Company is a certified ISO 9001:2008 in the field of Project Management & Consultancy.

Corporate communication

Corporate Communication (CC) Division accomplished number of activities during the period and major of these included:

Extensive news coverage/interviews in print & electronic media by way of releasing Press Releases

Organizing Interviews, Press Meets; Holding Press/Media Visits to our important projects in Real Estate & Redevelopment and other sectors. The division also organized footage shooting at NBCC''s important project locations by various TV channels which were also aired by respective channels as a news stories/ features etc.

The division brought out Coffee Table Book on Real Estate, Corporate Diary, event based publications, Corporate Brochures, Real Estate Brochures, Annual Report, Hoardings etc. and organized various Corporate Campaigns.

Website contents writing; Service mementos procurement & distribution to employees; Membership with different Professional Bodies/Clubs for NBCC''s business interests; NBCC Foundation Day celebration for employees; Celebration on NBCC''s attaining Navratna Status; Participation at IITF Exhibition-2014 at Pragati Maidan, New Delhi; MoUDs participation at Pravasi Bhartiya Diwas, 2015 and Vibrant Gujarat Summit, 2015 at Gandhi Nagar, Gujarat were other activities also undertaken by the division.

Award and accolades

During Financial Year 2014-15, in recognition of its performance and initiatives, NBCC received various awards, some of which are :

* Dalal Street PSU Award 2015 - "Best Wealth Creator Amongst Listed PSEs Award"

* The Swachh Bharat Ratna Award - 2015

* CIDC Vishwakarma Awards 2015

* The Best Stall Award at UCCI Expo -2015

* India Public Sector Enterprises Award

* Construction World Global Awards 2014

* Real Estate Awards 2014

* SCOPE Felicitation for attaining Navratna Status

* Dun & Bradstreet Infra Awards 2014

* Golden Peacock Award 2014 for Excellence in Corporate Governance

* Golden Global Achievers Award 2014

* NAREDCO National Real Estate Awards 2014

* Arch of Excellence Award 2014

Fixed deposits

During the year under review, your Company has not accepted any deposit and no principal or interest was outstanding as on March 31,2015.

Loan, guarantees and investments

Details of Loans, Guarantees and Investments covered under the provisions of Section 186 of the Companies Act, 2013 are given in the notes to the Financial Statements forming part of this Annual Report.

Subsidiaries, joint ventures and associate companies

During the year under review, the wholly owned subsidiary of NBCC was incorporated namely "NBCC Services Ltd" with an objective to provide post construction maintenance services to clients.

The Company is also in process to form a joint venture company with the Government of Rajasthan.

A report on the performance of the subsidiaries, associates and joint venture companies as per the Companies Act, 2013 is forming part of the consolidated financial statement. Further, a statement containing the salient features of the financial statements of our subsidiaries in the prescribed format AOC-1 is appended to the financial statement.

In accordance to section 136 of the Companies Act, 2013, the audited financial statements, including the consolidated financial statements and related information of the Company and audited accounts of the subsidiary are available on our website www.nbccindia.gov.in. These documents will be available for inspection during business hours at our registered office at Delhi.

The policy for determining material subsidiaries is available on company''s website at the link http://nbccindia.gov.ln/ nbccindia/nroot/njsp/Policies.jsp

Human resource

The company takes pride of its highly motivated and competent human resource which has been instrumental in taking the company to its present heights.

Category wise details of employees in the Corporate as on March 31,2015 is as under:-

Sl. Category of Posts Total Nos. SCs SCs% No. (Group) of Employees

1 Gourp''A'' 738 145 19.65

2 Gourp''B'' 118 21 17.80

3 Gourp''C'' 1155 184 15.93

4 Gourp''D'' 36 7 19.44

Total 2047 357 17.44%

Sl. Category of Posts STs STs% No. (Group)

1 Gourp''A'' 25 3.39

2 Gourp''B'' 7 5.93

3 Gourp''C'' 8 .70

4 Gourp''D'' - 0

Total 40 1.95%

Following appointment have been made on regular basis (including SC/ST) from April 01,2014 to March 31,2015.

Grade General SC %age ST %age Total

A 45 9 15.78% 3 5.26% 57

B 02 - - - - 02

C 13 2 12.50% 1 6.25% 16

D - - - - - -

TOTAL 75 Nos.

Directive issued by the Govt. of India from time to time for filling up of vacancies for SC/ST/OBC/Ex-servicemen have been followed in the Corporation.

Government instructions regarding reservation, relaxations, concessions & benefits as provided under Persons with disabilities (Equal Opportunities, Protection of Rights & full participations) Act. 1995 have been complied with.

No. of regular employees /NMR/PRW/WE Employees at the close of the year.

i) No. of regular employees : 2047

ii) No. of NMR : 1

iii) No. of WE/PRW : 0

Status of Woman Employees in the Company-category wise is as follows:

Sl. Group Total Manpower Manpower Strength of SC/ST/VH/PH No. Strengh of Woman employee SC ST VH PH

1. Group ''A'' 63 12 - - -

2. Group ''B'' 12 2 2 1 -

3. Group ''C'' 38 6 1 - -

4. Group ''D'' - - - - -

Total 113 20 3 1 -

Human resource development

Company adopted ''Fast Track Promotion Policy'' to accelerate the growth of high performers of the Corporation and to sustain the moral of junior & middle level executives. Every year on 1st January, promotion list is issued. Against DPC, every year 1st October, promotion orders are issued.

Employees are motivated to work in remote areas and in difficult conditions by providing additional financial as well as non financial benefits and facilities.

Further Human Resource potential is maximized through training .

Training

To enhance the knowledge of employees in their respective fields to enable them to make better use of their expertise and creative potentiality in an appropriate manner to achieve Organizational goal, HRD Division of the Corporation conducts in-house training program/ lecture etc. depending upon Corporations needs with the help of outside experts and also nominates officials for external training program/ workshop/ lecture etc. conducted by various institutions/ training agencies etc.

Employees trained on various subject during the year 2014-15 is given here under:-

In-House Training:

Training programs/ Workshops/Presentations/ Lectures etc. on the various topics such as Project Management in Construction Industry, Risk Management, High Rise Building Planning, Construction & Maintenance, Arbitration, Sustainable Building & Construction - A GRIHA Approach, M. S. Project, Orienting Personal Goals with Organizational Goals & Series of Residential Orientation Program for engineers from DPM to JE level, Service Tax for Finance Officials and series of workshops / programs on awareness / prevention of sexual harassment to the women at work place, Hindi Karyashala etc. were organized for officials.

893 officials were trained during the In-house Training Program and total training Mandays achieved for Group A & B officials = 2333 Nos.

Training Division had also conducted In-house Multi up-skilling Program for Non-Executive Employees on Pan India basis and achieved 113 mandays.

External Training:

168 Officials were nominated for various external training programs/ courses such as; General Management, Construction Management, Financial Management, Safety Management, Personnel Management, Vigilance Mechanism, Contract Management, HRM etc. organized by various reputed training institutions. 378 ( nos.) training mandays were achieved during FY 2014-15.

INDUSTRIAL RELATIONS

Harmonious industrial relations were maintained during the year resulting in no loss of mandays on account of strike or labour unrest.

policy against sexual and workplace harassment

The Company believes in providing opportunity and key positions to women professionals. It has been the Endeavour of the Group to encourage women professionals by creating proper policies to tackle issues relating to safe and proper working conditions for them and create and maintain a healthy and conducive work environment free of discrimination.

During the year under review there were no case filed pursuant to the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal ) Act, 2013.

official language

The Company has been implementing the provisions of Government''s Official Language Policy. Employees are encouraged to use Hindi in their daily working. During the year 2014-15, quarterly meetings of Official Language Implementation Committee (OLIC) were held regularly to review the progressive use of official language Hindi in the Company and several workshops were organized to promote the official use of Hindi-use of Hindi Unicode,Hindi noting, letter writing etc in which number of participants from Corporate Office, RBG, SBG and Zonal Offices participated.

Hindi Protsahan Mas was observed from 01 September to 30 September, 2014 in which various activities were organised and many employees took active part in it. Hindi Diwas and Hindi Sangoshthi were also organised by the Company. For the year 2014-15, Quarterly Hindi Vyavhar Pratiyogita (Use of Hindi in day to day official work) has been organised in which various participants took part and prizes were given to them. Hindi Inspections were conducted by the Rajbhasha Cell in the various Divisions at Corporate Office and Regional Business Groups (RBG)/Strategic Business Groups (SBG) /Zonal Offices to oversee use of official language Hindi in day to day working.

management discussion and analysis report

Management Discussion and Analysis Report as per section 49 of the Listing Agreement with the Stock Exchanges in India , forms part of this Annual Report as Annexure - I.

DIRECTORS'' RESPONSIBILITY STATEMENT

Your Directors confirm that:

a) in the preparation of annual accounts for the financial year ended March 31,2015 , the applicable Accounting Standards have been followed ;

b) the Directors have selected such accounting policies and applied them consistently and made judgements and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at March 31,2015 and of the profit of the Company for the period ended on that date ;

c) the Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

d) the Directors have prepared the annual accounts on a going concern basis;

e) the Directors have laid down internal financial controls to be followed by the Company and such internal controls are adequate and are operating effectively and;

f) the Directors have devised proper system to ensure compliance with the provisions of all applicable laws and that such systems are adequate and operating effectively.

corporate governance report

The Company is committed to maintain the highest standards in Corporate Governance so as to ensure highest level of transparency to meet the stakeholders ''s expectations.

The Company complies with the revised clause 49 of the listing agreement and guidelines issued by DPE on Corporate Governance.

The Corporate Governance Report for the year ended March 31,2015 forms part of this report as Annexure- II.

contracts and arrangements with related parties

Particulars of contracts/ arrangements/ transactions referred to in section 188(1) of the Companies Act, 2013 in prescribed Form AOC-2 as enclosed to this Report as Annexure -Ill.

During the year under review, the company had not entered into any contract/ arrangement/transaction with related parties which could be considered material in accordance with the policy of the Company on materiality of related party transaction.

The policy on materiality of related party transactions as approved by the Board is available on the Company''s website at the link http://nbccindia.gov.in/nbccindia/nroot/njsp/PoNcies.jsp

CORPORATE SOCIAL RESPONSIBILITY COMMITTEE (CSR) & SUSTAINABILITY DEVELOPMENT

The Company has Corporate Social Responsibility Committee which has formulated and recommended to the Board CSR Policy (CSR Policy) which can be accessed on the Company''s website at the link http://nbccindia.gov.in/nbccindia/ nroot/njsp/Policies.jsp

The Company also have a Sustainability Policy to affirm its commitment in contributing towards a clean and sustainable environment and make it an integral part of the construction as well as business operations of the Company with a view to preserve the mother earth and environment and give our customers, stake holders, society at large and future generations good quality of life and a better place to live.

The committee has also recommended the CSR activities in compliance to Schedule Vll to the Act. The Annual Report on CSR activities forms part to this Annual Report as Annexure-lV.

COMPLIANCE OF DPE GUIDELINES AND POLICIES

The guidelines and policies issued by Department of Public Enterprises from time to time are duly complied with by the Company.

MSME IMPLEMENTATION

In line with the Public Procurement Policy for MSME''s notified by Ministry of Small & Medium Enterprises, Govt. of India, during the current year procured about Rs. 8.90 lakh of goods from micro and small enterprises which is around 33% of total value of direct purchases for office consumption for its own use out of which, a sum of Rs. 3.84 lakhs remain unpaid to the suppliers at the end of the accounting year.

RISK MANAGEMENT

The Company has adopted Risk Management Policy to manage and monitor the principal risks and uncertainties that may affect the functioning of the Company. The Company''s risk management policy is available on the website at the link. http://nbccindia.gov.in/nbccindia/nroot/njsp/Polides.jsp

INTERNAL FINANCIAL CONTROL

The Company has in place adequate internal financial controls for ensuring orderly and efficient conduct of its business, including adherence to the Company''s policies, safeguarding of its assets, prevention of frauds, accuracy of accounting records and timely preparation of reliable financial disclosures.

VIGILANCE ACTIVITIES

The vigilance department is the nodal section for handling all vigilance matters of the NBCC. It believes that with best practices, adequate controls and transparency in place, decisions taken will be professionally, efficiently, effectively and consistently, leading to the corporate excellence. The Vigilance Division of Corporation is under the charge of Chief Vigilance Officer (of the rank of Joint Secretary).

Complaints received from within the Corporation, Members of public, Central Bureau of Investigation, Central Vigilance Commission, Clients and Ministry of Urban Development are investigated in the Vigilance Division. After investigation of complaints, where lapses/ irregularities are established, the disciplinary proceedings are initiated against the delinquent employees. Further, with an ultimate aim of eradicating corruption in the Corporation, a four pronged strategy is followed which has also been appropriately incorporated in the Annual Action Plan relating to anti-corruption measures:

* Preventive Vigilance

* Detective Vigilance and Surveillance

* Punitive Vigilance

* Use of IT innovations to curb malpractices and ensure transparency.

Vigilance Awareness Week was observed in NBCC from 27.10.2014 to 01.11.2014 as per the directives of CVC.

VIGIL MECHANISM

In pursuant to the provisions of Section 177(9) & (10) of the Companies Act, 2013 and clause 49 of the Listing Agreement a vigil mechanism for directors and employees to report genuine concerns about unethical behaviour, actual or suspected fraud or violation to the Companies Code of conduct has been established which includes the duly adopted Whistle Blower Policy uploaded on Company''s website at the link. http://nbccindia.gov.in/nbccindia/nroot/njsp/Policies.jsp

AUDITORS AND AUDITOR''S REPORT

Statutory Auditors

M/s Jagdish Chand & Co., Chartered Accountants, was appointed as Statutory Auditors for the financial year 2014-15 by the Comptroller & Auditor General of India (C&AG). The notes on financial statement referred in the Auditor''s Report are self explanatory and do not call for any further comments. The Auditors''Report is attached and forms part of this Annual Report.

Cost Auditors

M/s Shome & Banerjee, Cost Accountants were appointed as Cost Auditor of the Company for the financial year 2014-15.

Pursuant to the notification issued by the Ministry of Corporate Affairs (MCA) in respect of Cost Accounting Records Rules, 2011 your Company has made statutory compliances in respect of the financial year 2013-14.

Secretarial Auditors

The company has appointed M/s PC Jain & Company, a firm of Company Secretaries in practice to undertake the Secretarial Audit of the Company for the financial year 2014-15. The Secretarial Audit Report is annexed and forms part of this Annual Report in Annexure-V.

COMMENTS OF C&AG

The "NIL" comments of Comptroller & Auditor General of India (C&AG) on the financial statements of the Company for the year 2014-15 are attached and forms part of this report.

AUDIT COMMITTEE

The Company had duly constituted Audit Committee. On the completion of tenure of Independent Directors the Committee was reconstituted with the members viz. Shri Durga Shanker Mishra, Chairman, Smt Jhanja Tripathy and Shri S K Chaudhary as members. The recommendations made by the Audit Committee are accepted by the Board.

NUMBER OF MEETING OF BOARD OF DIRECTORS

Pursuant to Companies Act, 2013 and the Rules framed there under, 11 Board Meetings were held in the financial year 2014-15. The details of the meeting are at Corporate Governance Report forming part of this Annual Report.

BOARD OF DIRECTORS AND KEY MANAGERIAL PERSONNEL

Shri Durga Shanker Mishra, AS (UD), MoUD has been appointed as Nominee Director w.e.f. August 11,2014 in place of Shri D Diptivilasa former AS(UD), MoUD.

The tenure of five Independent Directors viz.: Shri Brijeshwar Singh, Shri K L Mehrotra, Shri S C Saraf, Prof. V K Gupta and Dr KC Iyer came to an end on December 4, 2014 .

The Board places on record its deep appreciation for the valuable contribution made by them during their tenure as Director on the Board of the Company.

Shri Rajendra Chaudhari, appointed as Director (Commercial) by the President of India assumed the charge w.e.f. June 10, 2015.

Shri Durga Shanker Mishra and Shri Rajendra Chaudhari shall hold office till the Annual General Meeting and are eligible for appointment as Nominee Director and Whole-time Director respectively.

The details of Directors seeking re-appointment is provided in the notice forming part of this report.

For the performance evaluation of Board and other Directors separate meeting of the Independent Directors is to be held every year and performance evaluation of Independent Directors is done by the Board as a whole excluding the concerned Director. The criteria of evaluation will be decided in the meeting itself.

Since the Company is Public Sector Undertaking all the appointment of Directors is made by President of India through Administrative Ministry and the appointment of new Independent Directors is awaited. As soon as the independent directors will join the board , the performance evaluation process will be carried out .

The Key Managerial Personnel of the Company for the FY 2014-15 are:

Dr. A K Mittal, Chairman-cum Managing Director

Shri S K Pal, Director (Finance)

Shri S K Chaudhary, Director (Projects)

Smt. Deepti Gambhir, Company Secretary

TRAINING OF DIRECTORS

Company strongly believes In continuous learning. Training and development of Directors on their joining the NBCC Is Imparted to familiarize them with the functioning of the company. The presentation to the inductee directors are given by the senior managerial personnel about the Company''s strategy, operations, organization structure, human resource, technology, risk management etc.

They are updated on the development in Corporate Governance norms from various statutory bodies to understand their duties and responsibilities in a better way which helps in their efficient discharging of the same. Besides as a part of the continuous learning participation in seminars and conferences designed for Board level executives by renowned institutes is permissible.

The company has a policy on Training of Directors available on its website at the link. http://nbccindia.gov.in/nbccindia/ nroot/njsp/Policies.jsp

EXTRACT OF ANNUAL RETURN

Extract of the Annual Return in Form MGT 9 as provided under section 92 of the Companies Act, 2013 is forming part of the Annual Return as Annexure -VI.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNING AND OUTGO

Conservation of Energy

The stress is given to minimize the energy consumption in all new building projects in achieving higher Green Rating for Integrated Habitat Assessment (GRIHA) and green building rating by adopting the best available power saving technologies like Solar Panel based in house roof top power generation, switching over from LCDs to LED lightings in all NBCC offices.

As most of the projects executed by NBCC are in line with the GRIHA norms, various measures taken for energy conservation involves Preservation of Top Soil; plantation of trees; use of fly ash bricks; rain water harvesting; recycled aggregate concrete for structural application; use of solar energy/ solar water heating; recycle, recharge and reuse of water; sewage treatment and reuse; energy management system; building management system; high performance system-wail, roof and glass; insulated green roof to avoid heat ingress; energy efficient lighting system and lux level is maintained as per ECBC norms; glass used for facade is heat reflective with excellent value; interiors are designed to use maximum day light; STP water is utilized for cooling towers and horticulture etc.

Technologies Absorption:

Continuous efforts are made towards new technology absorption which involves using modern methods of construction / steel structures etc. to reduce completion period, dependency on labour and improve quality of construction with faster speed. NBCC has taken up awarding projects on design and build (LSTK) basis, so that projects are completed with improved co-ordination and better quality. Many projects have been executed based on the concept of Pre Engineered Projects. Table Top shuttering has been adopted for reducing slabs cycle and thereby making construction faster. SAP based on-line monitoring systems for monitoring of high value/ critical projects to avoid time and cost over run is under development.

Foreign exchange earnings and out-go

During the period under review there was no foreign exchange earning or out go.

RESEARCH & DEVELOPMENT

Research and Development (R&D) Policy of NBCC provides a framework for the development of a research culture within NBCC, to improve research performance and to achieve high quality technology outputs. It promotes R&D activities as complimentary to construction activities so as to improve the quality of work and sustainability. Further, it contribute towards creation of wealth and well being of the company.

Company''s all new projects are conceived/ conceptualized in line with Bureau of Energy Efficiency (BEE) and GRIHA norms.

NBCC has also set up a C&D waste recycling plant at the East Kidwai Nagar, redevelopment project, for manufacturing of bricks.

Further NBCC has signed Memorandum of Understanding with Indian Institute of Technology Roorkee, for Joint Research & Development Centre at Greater Noida for sustainable Civil Infrastructure wherein mutually agreed research projects will be executed by the faculty of IIT Roorkee, and workshops, conferences and training programmes shall be conducted at the Joint R&D Centre.

RIGHT TO INFORMATION

Company has appropriate mechanism to provide information to citizens under the provisions of Right to Information (RTI) Act, 2005.

SIGNIFICANT AND MATERIAL ORDERS

There are no significant and material order passed by the regulator or court or tribunal impacting the going concern status and operations of the company.

GENERAL:

Directors hereby state that no disclosure or reporting is required in respect of the following items as there were no transactions on these items during the year under review:

1. There was no issue of shares under ESOS to the employees.

2. Neither the Chairman-cum -Managing Director nor the Whole Time Director received any remuneration or commission from the subsidiary company.

3. No material change and commitment affected the financial position of the company occurred after the end of the financial year to which this financial statement relate and upto the date of this report.

4. During the year under consideration no employee was in receipt of remuneration in excess of limits prescribed under the revised provisions of section 197(12) of the Companies Act, 2013 read with Rule 5(2) & 5(3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014.

5. The company is compliant of the Secretarial Standards issued by the ICSI from time to time.

ACKNOWLEDGEMENTS

We thank and sincerely acknowledge the co-operation received from the Government of India, particularly the Ministry of Urban Development, Ministry of Finance, Ministry of Home Affairs, Ministry of Defence, Ministry of Commerce, Ministry of External Affairs and various other government agencies.

We also acknowledge the unstinct faith and confidence reposed by our shareholders, Financial Institutions etc. in the Company.

The Board also appreciates the contribution of contractors, consultants etc in the implementation of various projects of the company.

We place on record the last but not the least the efforts and contribution made by employees at all levels to ensure the continuous growth and excellence of the Company.

Dr. Anoop Kumar Mittal Chairman-cum-Managing Director (DIN : 05177010)


Mar 31, 2014

Dear Members,

The Directors have pleasure in presenting the 54th Annual Report and Audited Financial Statements for the financial year ended March 31, 2014, together with the Auditors'' Report and Comments on the Accounts by the Comptroller & Auditor General(C&AG) of India.

Financial Results

The performance of the Corporation vis-a-vis the previous year is summarized in the table given below:

(Rs. in Crore)

INCOME 2013-14 2012-13

Consolidated* Standalone Standalone

Turnover 4038.70 4008.77 3186.82

Other Operating Revenue 59.57 58.19 45.47

Other Income 106.10 106.04 115.16

Extra Ordinary Items (Insurance claims)

Total Revenue (1) 4204.37 4173.00 3347.45

EXPENDITURE

Prime Cost 3506.60 3490.93 2701.76

Increased/(decrease) in stock 88.05 88.05 118.81

Overheads

i) Employees Benefit Expenses 182.10 182.10 170.76

ii) Other Expenses 47.19 47.12 41.92

iii) Write offs 7.51 7.51 5.02

iv) Prior Period Expenses 0.04 0.04 0.87

Total (2) 3831.49 3815.75 3039.14

Gross Margin (1-2) 372.88 357.25 308.31

Less : Depreciation 1.35 1.35 1.35

Less: Exceptional Item (Interest) 22.38 22.38 5.32

Profit Before Tax (PBT) 349.15 333.52 301.64

Less :

i) Provision for Current Tax 105.59 100.27 94.65

ii) Deferred Tax (Assets) /Liabilities (13.89) (13.89) (1.05)

iii) Prior Period Tax Adjustment - 0.54

Profit After Tax (PAT) 257.45 247.14 207.50

New Business secured 4932.68 7187.66

Balance work in hand 15427.36 12163.16

*This is the first year of preparation of consolidated accounts.

Operations And Business Performance

Consolidated

During the year under review Company''s total income from operations was Rs. 4098.27 cr and net profit after tax was Rs. 257.45 cr.

Standalone

During the year under review Company''s total income from operations increased by 25.82% i.e. 4066.96 cr as compared to Rs. 3232.29 cr previous year. Net profit after tax also increased to Rs. 247.14 cr as compared to Rs. 207.50 cr previous year.

Dividend

Directors of your Company have recommended equity dividend of Rs. 5.00 per share of face value of Rs. 10/- each (i.e. 50% of the paid up equity share capital) for the financial year 2013-14, which is subject to approval of the Members in the ensuing Annual General Meeting. The total dividend payable works out to Rs. 60.00 crore (excluding dividend tax of Rs 10.20 crores)

Navratna Status

Your Company has been bestowed "Navratna" status by Department of Public Enterprises vide letter No. 26(1)/2014- GM dated 23.06.2014.

MOU Performance

NBCC has been signing MOU every year with the Ministry of Urban Development since 1992-93. The performance of NBCC has been rated "EXCELLENT" by the Department of Public Enterprises for the nine years out of ten years since financial year 2003-04 to 2012-13. Accordingly the following targets have been laid down for the financial year 2014-15.

(Rs. in crore) Turnover 3800.00

Order Book : 4500.00

Gross Operating Margin : 310.68

Based on the mou parameters, the Company is slated to achieve "Excellent" rating in the year 2013-14.

Order Book

At the beginning of the financial year 2013-14 opening work order in hand was Rs.14533.38 crore and New orders of Rs.4932.68. crore were procured and work of Rs. 4038.70 crore was executed, thus balance work order of Rs. 15427.36 crore remained at the close of the financial year 2013-14.

Public Work Organisation

Your Company has been notified as a Public Work Organisation (PWO) construction agency covered under revised Rule 126(2) of GFRs by virtue of which government department(s), PSUs and autonomous bodies award works on nomination basis.

ISO Certification

Your Company is a certified ISO 9001:2008 in the field of Project Management & Consultancy.

Recognitions Earned

During the year, the Company earned a number of recognitions. These included:

Golden Peacock Occupational Health & Safety Awards 2013 by Institute of Directors (IOD)

IGBC Award 2013 by Confederation of Indian Industry

Real Estate Awards 2013 by World Wide Achievers

Engineering Excellence Award 2013 by Engineering Watch Magazine

Largest Green Complex awarded IGBC Silver Rating

CIDC Vishwakarma Awards 2014

Corporate Social Responsibility & Sustainability Development

In furtherance of its commitment towards Corporate Social Responsibility and Sustainable Development, the Company undertook following initiative during 2013-14 for the welfare of the community and environmental protection:

- merit-cum-means scholarships schemes conducting skills and entrepreneurship development programme construction, repair of roads, community centres, schools, toilets, drinking water facilities in Sawaimadhopur District of Rajasthan, Tripura & Mizoram, providing ropeways for connecting Seku Village in Uttrakhand construction of community hall at Hatoda, distt. Chhindwara, skill enhancement program at GPRA complex, Moti Bagh, New Delhi, conducting skill & entrepreneurship development program at Distt. Behraich, UP,

The Company has CSR&SD committee entrusted with the responsibility of formulating and recommending to the Board, a CSR Policy indicating the activities to be undertaken by the Company, monitoring the implementation of the framework of the CSR Policy and recommending the amount to be spent on CSR activities.

Corporate Communication

Corporate Communication (CC) Division accomplished a number of activities during the period in order to project and promote the image of the organization. The activities included news coverage in both print & electronic media by way of releasing Press Releases, Organizing Interviews, Press Meets, Holding Press/Media Visits to our important projects in Real Estate and other sectors. The Division, during the year brought out House Journals, Corporate Diary, Calendars. Event based publications, Corporate Brochures, Real Estate Brochures, Performance sheets, Annual Reports, Hoardings etc. and organized various Corporate Campaigns. CC Division also organized NBCC''s participation at IITF Exhibition in Pragati Maidan, New Delhi. Besides other various Corporate events and activities, have been organized/facilitated by the CC Division during the year.

Research & Development

In compliance with the guidelines on Research &

Development (R&D) notified by DPE, the Company formulated R&D Policy & R&D Plan.

R & D activities towards sustainable construction has been taken up by the Company and outcome of the same is being continuously incorporated to achieve faster construction with quality and minimizing the use of natural resources so as to improve quality of work and sustainability. Several initiatives have been undertaken such as waste water recycling, energy saving fitting & fixtures, segregation of waste & waste management, recycling of ''construction & demolition'' waste, solar lighting/heating and natural gas based power back up, green building features etc. as fundamental elements of the project.

Vigilance Activities

The Vigilance Division undertakes inquiry into transaction in which employee is suspected or alleged to have acted for an improper corrupt purpose or cause such an inquiry or investigation to be made into any complaint of corruption, gross negligence, misconduct, recklessness, lack of integrity or other kind of malpractices or misdemeanours on one''s part.

With an ultimate aim of eradicating corruption, a four pronged strategy is followed, which has also been appropriately incorporated in the Annual Action Plan relating to anti-corruption measures viz. (a) Punitive Vigilance (b) Preventive Vigilance, (c) Pro-active Vigilance (d) Detective Vigilance & surveillance, (e) Use of IT innovations to curb malpractices and ensure transparency.

Vigilance Awareness Week was observed in the Company from October 28 to November 2, 2013 as per the directives of CVC. Vigilance Awareness Week was observed at Head Office and various other offices of NBCC with great enthusiasm and positive role by employees for promoting good governance and need being self vigilant in day to day matters. Emphasis is to carry on the work in a manner so as to achieve the goal of zero corruption and no complaints in the organisation.

Safety Management

Management is fully committed to ensure safe working conditions at all work sites. Corporate Safety Management Cell is involved in spreading awareness of "Safety" and coordination of organisational efforts on Safety related statutory compliances. Activities undertaken by the Safety Management Cell includes preparation of NBCC Safety Manual, Celebration of National Safety Day/Week with effect from 04.03.2014 which included activities like administering safety pledge, release of safety posters, display of safety banners at Corporate and field offices etc. Awards were also given to the Units following safe construction practices.

Human Resource

Recruitment of SC/ST/General

Category wise details of SC/ST employees in the Corporation as on 31.03.2014 is as under:-

Grade General SC % ST % Total

A 574 148 19.84% 24 3.22% 746

B 86 20 17.86% 6 5.36% 112

C 1018 200 16.3% 9 0.73% 1227

D 42 9 17.65% - 0% 51

Total 1720 377 17.65% 39 1.82% 2136

Following appointments have been made on regular basis (including SC/ST) from 01.04.2013 to 31.03.2014.

Grade General SC % of SC ST % of ST Total

A 35 2 5.26% 1 2.63% 38

B 10 3 21.43% 1 7.14% 14

C 18 3 13.64% 1 4.55% 22

D - - - - - -

Total 63 8 40.33% 3 14.32% 74

Directives issued by the Govt. of India from time to time for filling up of vacancies for SC/ST/OBC/ Ex-servicemen have been followed in the Corporation.

Government instructions regarding reservation, relaxations, concessions & benefits as provided under Persons with disabilities (Equal Opportunities, Protection of Rights & full participations) Act. 1995 have been complied with.

Details of female employees in the company - category wise, total number Group - wise SC / ST / VH / PH.

Grade General SC ST OBC VH PH Total

A 47 10 - - - - 57

B 5 4 1 2 - - 12

C 28 5 2 3 1 - 39

D - - - - - - -

Total 80 19 3 5 1 - 108

Human Resources Development

The HRD Division of the Company assist employees to upgrade their skills, knowledge and ability to take up higher responsibilities on continuous basis. This activity is undertaken by organizing in-house lectures/training programmes/workshop etc. and also nominating officials for external training programs/seminars/workshops etc. organized by various reputed training Institutions.

During financial year 2013-14, 99 workshops /seminars /lectures /programme were conducted through in-house as well as external agencies on different subjects in which 1046 officials were trained.

We have achieved 3116 training man days through in-house as well as external training programme in respect of group A,B,C & D officials for Excellent rating.

Industrial Relations

During the year, the Corporation continued to maintain harmonious industrial relations, Co-operation between the elected representative bodies of employees and management ensured that no man-days were lost. Personnel policies and welfare schemes were continuously aligned with the Company''s goals and objectives.

Official Language

In compliance with the Government''s Policy on Official language, continuous efforts were made for propagating and progressively increasing the use of Hindi in Official work. Every year Hindi Diwas & Rajbhasa week /fortnight are organized in the Corporate Office as well as in the Branch Offices of the Corporation. During these events employees doing exemplary work in Hindi in day to day official tasks are felicitated

During the year 2013-14, quarterly meetings of Official Language Implementation Committee (OLIC) were held to review the progressive use of official language Hindi in the Company.

During the year, several workshops were held to promote the official use of Hindi. Four Workshops on use of Hindi Unicode were organized by NBCC on June 28th, September 21st, December, 2013 and March, 2014 in which number of participants from Corporate Office, RBG, SBG and Zonal Offices participated.

Hindi Protsahan Mas was observed from September 01, 2013 to September 30, 2013 in which various activities were organized and many employees took active part in it. Hindi

Diwas was also celebrated in this month. For the year 2013- 14, Quarterly Hindi Vyavhar Pratiyogita (Use of Hindi in day to day official work) has been organized in which various participants took part and prizes were given to them. Hindi Inspections were conducted by the Rajbhasha Cell in the various Divisions at Corporate Office and Regional Business Groups (RBG)/Strategic Business Groups (SBG)/ Zonal Offices to oversee use of official language Hindi in day to day working. Further, progress of Official Language Implementation was also reviewed in the quarterly General Manager''s Conference.

Listing Requirement Compliances

Management Discussion and Analysis Report is at Annexure-I and Corporate Governance Report at Annexure- II, which forms integral part of the Directors'' Report as per requirements of the listing agreement.

Supplementary Compliance Certificate to Corporate Governance Report signed by the Chairman-cum- Managing Director affirming receipt of compliance with the code of conduct from all board executives and key personnel for the year 2013-14 is at Annexure-III. Also, Certificate from the Chairman-cum-Managing Director & Chief Financial Officer about due compliance of Clause 49(V) is at Annexure-IV; and Certificate of compliance of Corporate Governance provision signed by the Statutory Auditors as per Clause 49(VII) of the listing agreement is at Annexure-V.

Green Initiative in Corporate Governance

Your Company started a sustainability initiative with the aim of going green and minimising our impact on the environment. We are publishing Annual Report and other statutory disclosures are available on our website,www.nbccindia.gov.in.

Electronic copies of the Annual Report and Notice of the AGM sent to all members whose email addresses are registered with the Company/Depository Participant(s). For members who have not register their email addresses, physical copies of the Annual Report and the Notice of AGM are sent in the permitted mode. Members requiring physical copies can send request to the Company Secretary.

Financial Accounting

The Financial Statements have been prepared in accordance with the generally accepted accounting principles (GAAP) and in compliance with all applicable Accounting Standards issued by The Institute of Chartered Accountants of India (ICAI) and Companies Act.

Consolidated Financial Statement

In accordance with the Accounting Standards (AS)-21 on Consolidated Financial Statements read with AS-23 on Accounting for Investments in Associates and AS-27 on Financial Reporting of Interests in Joint Ventures, the audited consolidated financial statement is provided in the Annual Report.

Statutory Auditors

M/s Sharma & Goel Co., Chartered Accountants, were appointed as Statutory Auditors for the financial year 2013- 14 by the Comptroller & Auditor General of India (C&AG). Their report is attached and forms part of this report.

Comments of C&AG

The comments of C&AG on the accounts of the Company for the year 2013-14 forms part of Annual Report.

Cost Audit & Compliance Report

Pursuant to the notification issued by the Ministry of Corporate Affairs (MCA) in respect of maintenance of Cost Accounting Records by ''construction industry'' vide orders dated 03.06.2011, your Company made statutory compliances in respect of the financial year 2012-13.

Board of Directors

Ms. Jhanja Tripathy, JS & FA, MoUD has been appointed on the Board of Corporation as Government Nominee we.f June 13, 2014 in place of Shri Naresh Salecha former JS & FA, MoUD.

The Board places on record its deep appreciation for the valuable contribution of Shri Naresh Salecha as member of the Board.

Shri S.K.Chaudhary, Director (Projects) has also been appointed on the Board of NBCC we.f. November 13, 2013

Pursuant to the provisions of Section 161 of the Companies Act, 2013 and Articles of Association of the Company Ms Jhanja Tripathy and Shri S.K.Chaudhary shall hold office till the Annual General Meeting and are eligible for appointment as nominee director and whole time director respectively.

Detail of the Directors seeking re-appointment as required under clause 49 of the Listing Agreement is provided in the Notice forming part of this Report.

The Company has received declaration from all the Independent Directors of the Company confirming that they meet the criteria of independence as prescribed under sub section (6) of Section 149 of the Companies Act, 2013 and clause 49 of the Listing Agreement.

Directors'' Responsibility Statement

In accordance with the provisions of Section 217 (2AA) of the Companies (Amendment) Act, 2000, your Directors hereby report as under:- a) that in the preparation of annual accounts, the applicable Accounting Standards have been followed along with proper explanation relating to material departure;

b) that the selected Accounting Policies were applied consistently and the Directors made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at March 31st, 2014 and of the profit and loss accounts for the year ended on that date;

c) that proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 1956 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities; and

d) that the Annual Accounts have been prepared on a going concern basis.

Conservation of Energy, Technology Absorption, etc.

The information required to be disclosed in accordance with the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules,1988 is Nil as the Company is mainly engaged in service sector. However while construction of buildings emphasis is given on use of such technologies which conserve energy by using solar energy construction of energy efficient and environment friendly intelligent and green buildings. Grid interactive SPV plant has been installed on roof of the corporate office building and at employees development centre, Gittorni, New Delhi.

Installation of energy efficient lights and use of natural light to the maximum extent is emphasized.

Particulars Of Employees

Pursuant to the provision of Section 217 (2A) of the Companies Act, 1956, read with the Companies'' (Particulars of Employees) Rules, 1975, as amended from time to time, none of the employees of the Company was in receipt of remuneration of more than Rs.60 Lac per annum or Rs.5,00,000/- per month.

Right to Information

In order to promote transparency and accountability, an appropriate mechanism has been set up in the corporation to provide information to citizens under the provisions of Right to Information (RTI) Act, 2005

Acknowledgements

Your Directors sincerely acknowledge the support and co- operation provided by the Ministry of Urban Development, Ministry of Finance, Ministry of Home Affairs, Ministry of Defence, Ministry of Commerce, Ministry of External Affairs and various other government agencies.

The Directors also acknowledge the constructive suggestions received from the Comptroller & Auditor General of India, Statutory Auditors and Internal Auditors.

Your Directors thank all stakeholders for their faith, trust and confidence reposed in the Company.

Your Directors also place on record its appreciation for the devoted and dedicated services rendered by all the employees in taking the Company forward.

For and on behalf of the Board

Place : New Delhi Sd./-

Date : 23.07.2014 Chairman-cum-Managing Director


Mar 31, 2013

To the members,

The Directors have pleasure in presenting the 53rd Annual Report together with the suited statement of accounts for the financial year ended March 31,2013, Auditors Report and Comments on the Accounts by the comptroller & Auditor General of India.

Financial Results

(Rs,in crore)

INCOME 2012-2013 2011-2012

Cutover 3186.82 3429.32

Other operating Revenue 11.66 18.36

Other Income 148.97 134.62

Extra Ordinary Items (Insurance Claims) - -

Total Revenue (1) 3347.45 3595.82

EXPENDITURE

Prime cost 2701.76 3051.25

Increased/ (decrease) in stock 118.81 47.19

Overheads

i) Employee Benefit Expenses 170.76 157.21

ii) Other Expenses 41.92 41.85

iii) Write offs 5.02 2.88 iv) Prior period Expenses 0.87 (3.13)

Total (2) 3039.14 3297.25

Gross Margin (1-2) 308.31 298.57

Less: Depreciation 1.35 1.35

Less: Exceptional item (Interest) 5.32 7.39

Profit Before Tax (PBT) 301.64 289.83

Lees

i)Provision for Current Tax 94.65 102.85

ii) Deferred Tax (Assets)/ Liability (1.05) (3.19)

iii) Prior period Tax Adjustment 0.54 -

Profit After Tax (PAT) 207.50 190.17

New Business secured 7187.66 3933.72

Balance work in hand 12163.16 8162.21

Despite lower turnover in the financial year 2012-13 your company has earned a net profit before tax of Rs,301.64 crore (Rs,289.83 crore in FY 2011-12) representing an increase of 4.07% after providing depreciation of Rs,1.35 crore (Rs,1.35 crore in to 2011-12) and interest of Rs,5.32 crore (Rs,7.39 crore in FY 2011-12)

Dividend

Director of your company have recommend equity divided of Rs,3.75 per share of face value of Rs,10(-(37.50%) on the paid up equity share capital) for the financial year 2012-13 which is subject to approval of the Members in the ensuing Annual General Meeting. The total dividend payable works out to Rs,52.30 crore (excluded tax of Rs,7.30 crore).

MoU Performance

NBCC has been singing MoU every year with the Ministry of Urban Development since 1992-93 The performance of NBCC has been rated "EXCELLENT" by the Department of Public Enterprises for nine consecutive years i.e. from 2003-04 to 2011-12.The MOU for the year 2013-14 was signed with moUD on 21.03.2013.The following targets have been laid down for the year 2013-14.

(Rs,in crore)

Turover : 3600

Order Book : 4000

Gross Margin : 174

Net Profit : 142

Based on the Mou parameters the company is slated to achieve "Excellent" rating in the year 2012-13.

Order Book

At the beginning of the financial year 2012-13, opening work order in hand was Rs.8162.21 crore and New orders works to Rs.7187.66 crore were procured and work of Rs.3186.71 crore was executed thus balance work order of Rs.12163.16 Crore remained at the close of the financial year 2012-13.

Re-development of Government Colonies

The Ministry of Urban Development has allocated three additional works to your company for Re-development of old and in habitable Government colonies located at Nethaji Nagar, masturbate Nagar & Thyagraj Nagar in New Delhi for General pool Residential Accommodation (GPRA) under different categories in addition id a similar re-development project awarded at kidwai Nagar East, New Delhi in the previous financial year currently under execution at an estimated cost of Rs.4264 crore (approx) for which an MOU was executed with the Ministry of Urban Development and the company on July 16.2013. Further there development work in respect of these three additional projects to be undertaken during the current financial year. The Ministry of Urban Development has identified in all around 30 such similar projects which will completely transform outlook and provide possible solution to overcome the shortage of GPRA in the capital. All these new re-development projects would be development on the kidwal Nagar model and are likely to generate sizeable business to your company in future.

Business Strategies

A sub-committee of directors headed by the independent Directors on Strategic planning & Business Model was constituted by the Board in March, 2013 to map out strategy and business model in potential areas for achieving sustained growth in the long run while consolidation of the position in crore area of your company i.e. project Management and consultancy. Real Estate segment is likely to witness an increased share in the overall turnover in the coming items besides focus share in the overall turnover in the NBCC brand through new areas of operations in specialized area/activity also in entering into tie-ups or associates with other consultants and pioneers in the advanced technologies Further prime focus shall remain on the re-development works of old government colonies and provide impetus to achieve new heights in the next decade.

ISO Certification

Your Company is a certified ISO 9001-2008 in the field of Project Management & consultancy and the certification.

Safety Management

Safety Audit was conducted at field units, sites fire services day/week beginning from April 14,2012 and World Environment Day on June 5,2012 were observed corporate safety Awards scheme has been launched in October 2012 and of the major initiative towards awareness for observing safety parameters at all units project sites. corporate safety policy has been uploaded on the company''s website safety posters and calendars were circulated for display at work sites besides highlighting the importance of safety aspects through articles clipping and screening of film on safety.



Listing Requirement Compliances

Management Discussion and Analysis Report is at Annexure-a and Corporate Governance Report at Annexure-ii which forms integral part of the Directors Report as per requirements of the listing agreement.

Supplementary compliance certificate to corporate government Report singed by the Chairman cum- managing Director affirming receipt of compliance with the code of conduct from all board executives and key personal for the year 2012-13 is at Annexure III. Also certificate from the chairman -cum-Managing Director & chief Financial officer about due complaisance of Clause 49 (V) is at Annexure-IV and certificate of compliance of Corporate Governance provision signed by the statutory Auditors as per clause 49(VII) of the listing agreement is at Annexure-V.

Corporate Social Responsibility & Sustain ability Development

Your company is committed to the values of corporate social Responsibility & Sustainability Development (CSR & SD) and has adopted the guidelines issued by the Department of public Enterprises.CSR & CD has been assigned with the Ministry of Urban Development Government of India in line with the revised guidelines which were effective from April 01,2013, a committee of Director headed by the independent Director for CSR & Sustainability Development was reconstituted by the Board of Directors on February 8,2013. Also a Nodal officer has been nominated to submit report on regular basis on the progress about the implementation of CSR & SD activities to a Board level committee Your Budgetary provision for CSR & SD initiatives in compliance with the DPE GUIDELINCES HAS BEEN DULY APPROVED BY THE board OF directors OF YOUR COMPANY.

The following project based CSR initiatives were taken during the financial year 2012-13.

I. MoU Activities

(a) Merit-cum-Means scholarship scheme for students of class VIII to XII in association with m/s Looms.

(b) Conducting skill & Entrepreneurship Development program through training partners of NSDC in the market driven trades with an adjectives ensuring 75% employability to the students.

(c) Repairs of schools/providing toilets in schools in support of Right to Education and the Total Sanitation campaign of the Govt. of India.

(d) Constructions of Night Shelters in association with Urban shetter improvement Board at four different locations in Delhi.

(e) Construction of bus stands in Mizoram Alwar and J & K as per requirements of the state Agencies in these arises.

(f) Handing over Ambulance/Mobile Medical unites in J&K NER & Haryana to state authorities.

(g) MOU with TISS to carry out proposal evolution base line survey import assessment of CSR activities in compliance with DPE guidelines has been executed.

II. Non-MoU Activities

(a) Movivating young tallents in the field of sports in association with Bengal Tennis Association.

(b) Membership of India Trust for Rural Heritage and Developments (ITRHD) and for sustainable economic growth & for ensuring livelihood to rural residents.

(c) Construction of check Dams in villages at Kusaput, Taluka Bhiwandi.

(d) Providing Morgue Van to the Dy. Commissioner Champlain (Mizoram) the only hospital in the district.

(e) Rehabilitation of Earthquake attested victims for providing low cost houses for rehabilitation of earthquake effected victims in sikkm.

Conservation of Energy

Scope for energy conservation in service sector in which your Company is engaged e meager. Still emphasis on construction of buildings involving use of such techniques resulting in conservation or energy by use of solar energy. construction of energy efficient & environment friendly intelligent and green buildings. Grid interactive SPY power of an I has been installed on roof of the Corporate Office buying and one at Employees Development Central. Ghitomi new Delhi installation of energy efficient lights and use. of natural light to the maximum extent is being emphasized LASB technology s employed in sewage Treatment plant which assist in conservation of electricity.

Human Resource Development & Training

The HRD Division of the company assist employees for up gratin of the skills knowledge and ability to take up higher responsibilities on regular basis. This activity is undertaken by organizing in house lecture salaaming programmes workshop etc and also nominating officials. for external training programs seminars & workshops.

During the calendar year 2012-13 a total no.of 121 workshops seminars programs were conducted through in-house and external agencies on different subjects in which 1451 officials participated.

Training man days achieved were 2441 through these in-house and external training programe for group A&B officials.

Also the Trading Division of the company in Delhi had arranged multi-skill updating programme for Group C&D employees through in-house faculty.

During the calendar year 2012-13 three programme for each training batch companies 25 participants from different disciplines were conducted for C&D employees.

Manpower

Regular employees strength of the Company as on 31.3.2013 was 2212 and the category-wise position is as under:

GROUP-A GROUP-B GROUP-C GROUP-D TOTAL

763 61 1279 89 2212

(56) (8) (42) (5) (111)

(The figure in brackets is in respect of female employees)

Reservation Of Scheduled Castes And Scheduled Tribes/ Other Backward Classes And Physically Challenged Persons

Derives issued by the government of India from time to time for filling up of vacancies for SC/ST/OBC/Ex-serviceman/physically Handicapped have been following in the company during the year we have appointed 02 physically challenged persons in Group A

GOVERNMENT INSTRUCTIONS REGARDING RESERVATION RELAXATIONS CONCESSIONS & BENEFITS AS PROVIDED UNDER PERSONS WITH DISABILITY (EQUAL OPPARTUNITIES PROTECTION OF RIGHTS & full PARTICIPATIONS) ACT,1995 HAVE BEEN COMPLIED WITH.

Grade General SC % ST % TOtal

A 575 162 21.23 26 3.40 763

B 62 17 20.98 02 2.46 81

C 1050 215 16.81 14 1.09 1279

D 75 14 15.73 - - 89

Total 1762 408 18.44 42 1.89 2212



Industrial Relations scenario in the company during the year 2012-13 remainder peaceful and cordial. No man days were lost in strikes and all industrial disputes and differences were resolved amicably across the tables.

Progressive Use of Hindi

The Company has been implementing the provisions of Official Language Policy policies. are encouraged to use Hindi in their daily working Incentive schemes such as Noting Drawing Incentive silences such as nothing Drafting incentive scheme. Hindhi Dictation incentive Allowance to stenographers and Typist for doing official work in Hindi etc. have been implemented in the company in which employees are participating During the year under report efforts continued in the company towards progressive use of Hindhi During the year 2012-13 quarterly meetings of official language implementation committee (OLIC) were held to review the progressive use of official language Hindhi in the company.

a seminar on use of Hindi Unicode was organized on 12th Jury. 2012 in which participants from different Central Public Sector Enterprises had actively participated,

Hindi Protsahan mas was observed from September 1 to September 30,2012 Hindhi Diwas was also celebrated on 14th september,2012 in which under of employees from other CPSEs took part. Several other workshops were held to promote the official use of Hindhi on regular basis throughout the year. inspections were also conducted by the Hindhi celled corporate office and other offices to oversee use of official language implementation was reviewed in quarterly General Managers conference.

Vigilance Activities

The Vigilance Division undertakes inquiry into transaction in which employee is suspected or alleged to have acted for an improper corrupt into any companies of corruption gross negligence misconduct recklessness lack of integrity or other kind of malpractices or misdemeanors on one''s part.

With an ultimate aim of eradicating corruption a four pronged strategy is followed which has also been appropriately incorporated in the Annual Action plan relating to anti corruption measures viz. (a) preventive vigilance (b) Detective vigilance & surveillance (c) punitive vigilances & (d) use of IT innovations to curd malpractices and ensure transparency.

Vigilante Awareness Week versa Observed in the company from October 29 to November 3,2012 vigilances souvenir posters etc, were also brought out on this occasion.

Corporate Communication Corporate communication (cc) Division continued to make efforts forwards image building and establishing NBCC brand through effective visits at real estate and other project sites During the year various publications like real brochures corporate brochures quarterly newsletters even -based invites etc, were brought out. The division besides making corporate film has also undertaken works related to regular release of NITS display advertisements printing of Diaries calendars corporate events and etc, participation in exhibition organizing corporate events and several other inaugural & foundation stone laying functions.

Green Initiative in Corporate Governance

As part of the Green initiative in corporate Governances the Ministry of corporate Affairs (MCA) Government of India through its circular Nos 17/2011 and 18/2011 dated April 21,2011 and April 29,2011respectively has also allowed companies to send official Notices/documents to their shareholders electronically.

As a responsible corporate citizen your company has supported the implementation of Grteen initiative circulars issued by ministry of corporate affairs (MCA) and effected electronic delivery of notices of Annual General Meeting (AGM) and Annual Report for the year ended march 31,2013 to those shareholders whose email addresses were already registers with the respective Depository participations (DPS) and downloaded from the depositories viz NSDL/CDSL.

Directors" Responsibility Statement

In accordance with the provisions of section 217 (2AA)_ of the companies (Amendment)Act,2000 your Director hereby report as under.

b) that the selected Accounting Policies were applied consistently and the Directors made judgments and estimates that are reasonable end prudent be as to give a true and fair view of the state of affairs of the company as at march 31,2013 and of the profit and loss accounts for the year ended on that date.

c) that proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisions of the companies Act,1956 for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities and

d) That the Annual according have been prepared on a going concern basis.

Public Work Organization

Your Company has been notifying as a public work cfganisallorir.FWO) construction agency covered under revised Rule 126 (2) of GFRs by virtue of which government department (s) PSUs and autonomous bodies would be in a position to award works an nomination basis.

Auditors

The statutory Auditors of your company were appointed by the controller & Auditor General of India (C&AG) M/S Sharms & Goel co., Chartered Accountants New Delhi was nap pointed as statutory Auditors of the Company for the year 2012-2013.

Cost Audit & Compliance Report

Pursuant to the notification issued by the Ministry of Corporate Affairs (MCA) in respect of maintenance of cost Accounting Records by construction industry vide orders dated 03.05.2011 your company made statutory compliances in respect of the financial year 2011-12.

Particulars of Employees

Pursuant to the provision of section 217 (2A) of the companies Act, 1956 read with the companies (particulars of Employees) Rules 1975 as amended from time to time name of the employees) Rules company was in receipt of remuneration of more than Rs,60lac perineum or Rs,5,00,000/- per month.

Directors

During the year under report smt sudha krishnan joint secretary & FA shri s.k.MIttal and shri Rakesh misra former Director General of CPWD Ministry of Urban Development were appointed as government nominee director on Board of the company and their tenure concluded before March 31,2013 The Board places on record its deep apperception for the contributions made by them during their tenure.

Acknowledgements

Your Directors sincerely acknowledge the support and co-operation provided by the Ministry of Urban Development Ministry of Finance Ministry of home Affairs Ministry of Defense Ministry of commence Ministry of External Affairs and various other governments

The Directors also wish to hank CAG of India Chairman & Member of Audit Board Statutory Auditors for their co-operation and guidance and company bankers and esteemed clients for their continued support.

Your Director thank all stakeholders for their faith trust and confidence reposed in the company.

Your Directors also sincerely appreciate and thank all the employees for their valuable contribution and support in progress of the company

for and on behalf of the Board

place: New Delhi Chairman-cum-Managing Director

Date : July 24,2013.


Mar 31, 2012

The Directors take pleasure in presenting their 52nd Annual Report together with the audited statement of accounts for the financial year ended March 31, 2012.

FINANCIAL RESULTS

(Rs. in crore)

INCOME 2011-2012 2010-2011

Turnover 3429.32 3126.77

Other Operating Revenue 18.36 19.28

Other Income 134.62 85.41

Extra Ordinary Items (Insurance claims) 13.52 -

Total Revenue (1) 3595.82 3231.46

EXPENDITURE

Prime Cost 3051.24 2840.15

Increased/(decrease) in stock 47.19 -

Overheads

i) Employees Benefit Expenses 157.21 128.97

ii) Other Expenses 41.25 34.21

iii) Write offs 2.88 11.18

iv) Prior Period Expenses (3.13) (0.21)

Total (2) 3296.64 3014.30

Gross Margin (1-2) 299.18 217.16

Less : Depreciation 1.96 3.21

Less: Exceptional Item (Interest) 7.39 4.32

Net Profit Before Tax (PBT) 289.83 209.63

Less :

i) Provision for Current Tax 102.85 69.15

ii) Deferred Tax (Assets)/Liabilities (3.19) 0.14

Net Profit After Tax (PAT)

For the year 190.17 140.34

New Business secured 3933.72 3055.82

Balance work in hand 8162.21 7657.81

Your Company registered a growth of 10% in turnover from Rs. 3126.77 crore in 2010-11 to Rs. 3429.32 crore in 2011-12, Gross margin increased from Rs. 217.16 crore in 2010-11 to Rs.299.18 crore in 2011-12 before interest and depreciation. After deducting interest of Rs. 7.39 crore, providing a sum of Rs. 1.96 crore towards depreciation, income tax provision of Rs. 102.85 crore and Deferred Tax (Assets) of Rs.3.19 crore; the Company operations resulted in a Net Profit of Rs. 190.17 crore in 2011-12 as against Rs. 140.34 crore in 2010-11.

DIVIDEND

Your directors have recommended equity dividend of Rs. 3.50 per share of face value of Rs. 10/- (35% on the paid up equity share capital) for the approval of the members for the financial year 2011-12.

After approval by the members, the dividend will be paid to those equity shareholders whose names appear in the Register of Members at the close of the 52nd Annual General Meeting.

MoU PERFORMANCE

MoU for the year 2012-13 has been executed on 15th March 2012 with the Ministry of Urban Development laying down the following targets:

(Rs. in crore)

Turnover : 3500

Order Book : 3500

Gross Margin : 207

Net Profit : 134

Your Company is expected to get 'excellent' rating during the financial year 2011-12 and continuing to maintain similarly rating since the year 2003-04.

DISINVESTMENT OF GOI SHAREHOLDING

Under the disinvestment programme of Government for profitable companies, your Company's IPO for disinvestment of 10% of equity shareholding of Government of India through book building process amounting to Rs. 12 crore comprising of 1.20 crore equity share of face value of Rs. 10/- each, opened for public on 22.3.2012 and closed on 27.3.2012. Overall the issue was subscribed by 4.93 times. EGoM fixed the price of equity share at Rs. 106/-. Your company's shares were listed on the bourses of BSE and NSE w.e.f. 12.4.2012.

ORDER BOOK

Work order in hand at the close of the previous financial year was Rs. 7657.81 crore and new business of Rs. 3933.72 crore was secured during the financial year 2011-12. The company executed works of Rs. 3429.32 crore during the year under report, thus leaving a balance work load of Rs. 8162.21 crore as at 31.3.2012.

RE-DEVELOPMENT OF GOVERNMENT COLONIES

The Ministry of Urban Development has issued Letter of Intent to your company for Re-development of Kidwai Nagar (East), New Delhi for General Pool Residential Accommodation (GPRA) in various categories. Estimated cost of the project is Rs. 4264 crore (approx.) which includes maintenance of GPRA for a period of 30 years. The work involves construction of about 4747 dwelling units of Type II to Type VII. The project is to be completed in 60 months. Your company will be paid Project Management charges @ 10% of the project cost. Towards initial construction, your company will make investment of Rs. 200 crore which will carry a return of 15%. Cost of the project will be recouped from lease sale of commercial office space (10% of total FAR permissible) and 10% of built up residential area for a period of 30 years to the government departments/ministries and PSUs.

The Ministry of Urban Development has also identified six other old and inhabitable government colonies for re-development on the model of Kidwai Nagar (East), GPRA complex. Out of these, your company has already initiated action for submission of project report, for the present in relation to three GPRA colonies at Netaji Nagar, Kasturba Nagar & Thyagraj Nagar in New Delhi. This re- development of government colonies is likely to generate new business and further improve the order book position of your company.

BUSINESS STRATEGIES

The company's constant endeavor for satisfaction of clients through timely completion, quality assurance and cost reduction during execution helps in providing them value added services in terms of better specifications within the sanctioned cost. Company's initiatives through constant liaison and proactive approach have resulted in repeat orders from clients. Implementation of proper fund management at the corporate level has resulted in effective utilization of financial resources.

ISO CERTIFICATION

Your company has obtained ISO 9001:2008 Certification for its Project Management and Consultancy Divisions. As an ISO9001:2008 accredited organization, making quality an obsession with commitment to continually improve the effectiveness of quality management system is a practiced philosophy. The Consultancy Division is equipped with latest software like STAAD Pro 2005 and AUTOCAD 2009 for drafting and designing.

SAFETY MANAGEMENT

Corporate Safety Policy has been adopted in the Company. During the financial year 2011-12, activities undertaken by the Safety Management Cell includes finalisation of NBCC Policy on Disaster Management, celebration of National Safety Day/week with effect from 4.3.2012, administering safety pledge on 5.3.2012. Other associated activities involved release of safety posters, display of safety banners at Corporate and field offices. Fire Services Day was observed on 14.4.2012 in company's field offices/sites. Besides, several communications highlighting the importance of safe working conditions at project sites were forwarded from time to time throughout the financial year.

LISTING REQUIREMENT COMPLIANCES

Management Discussion and Analysis Report is at Annexure-I and Corporate Governance Report at Annexure-II which forms integral part of the Directors' report as per requirement of the listing agreement.

Supplementary Compliance Certificate to Corporate Governance Report signed by the Chairman-cum-Managing Director affirming receipt of compliance with the code of conduct from all board executives and key personnel for the year 2011-12 is at Annexure-III. Also, Certificate from the Chairman-cum-Managing Director & Chief Financial Officer about due compliance of Clause 49(V) is at Annexure IV; and Certificate of compliance of Corporate Governance provision signed by the Statutory Auditors as per Clause 49(VII) of the listing agreement is at Annexure V.

CORPORATE SOCIAL RESPONSIBILITY

Your Company has adopted a Corporate Social Responsibility Policy to undertake activities in line with the directives issued by the Department of Public Enterprises vide its O.M. No. 15(3)/2007-DPE(GM)-GL-99 dated 27.4.2010 . In accordance with government guidelines, 3% of net profit after tax has been allocated for CSR activities during the year 2011-12. Any unspent amount at the close of the financial year will be carried forward for utilization in the subsequent years. In terms of the Memorandum of Understanding signed between the company and Ministry of Urban Development for the year 2011-12, an amount of Rs. 1.97 crore has been spent on various CSR projects/activities such as: setting up of technical training institute; providing entrepreneurial and skill development courses for educated unemployed youth; drinking water facility in rural school in remote areas; providing toilet blocks in girls school in J&K; distribution of scholarship amongst girls students in the States of Bihar, Mizoram, Uttrakhand and NCT of Delhi; implementation of Rashtriya Swasthya Bima Yojna and financial support to Rajiv Gandhi Foundation for distribution of motorized vehicle to disabled person.

CONSERVATION OF ENERGY

With restricted scope for energy conservation in service sector, your company has laid emphasis on techniques resulting in conservation of energy by making use of solar energy and undertaking construction of Energy Efficient & Environment Friendly Intelligent Buildings. Your company has placed an order for supply & installation of a 16KWp Grid Interactive SPV power plant on roof of Corporate Office building. At work place, installation of energy efficient lights and maximum use of natural light is being encouraged. Sewage Treatment Plants executed using UASB technology without any moving parts helps in conservation of electricity.

HUMAN RESOURCE DEVELOPMENT & TRAINING

Human Resource Development continues to be accorded high priority with emphasis on improving skill, competence and knowledge through regular training and professional development programmes. A total of 962 training man-days were achieved during the year. During the year, 69 workshops/seminars/ lectures and programmes were conducted through in-house and external agencies on different subjects in which 526 officials were trained.

MANPOWER

Regular employees strength of the Company as on 31.3.2012 was 2227 and the category-wise position is as under:

GROUP-A GROUP-B GROUP-C GROUP-D TOTAL

759 66 1281 121 2227

(55) (5) (43) (8) (111)

(The figure in brackets is in respect of female employees).

RESERVATION OF SCHEDULED CASTES AND SCHEDULED TRIBES/ OTHER BACKWARD CLASSES AND PHYSICALLY CHALLANGED PERSONS

Directives issued by the Government of India from time to time for filling up of vacancies for SC/ST/OBC/Ex-servicemen/Physically Handicapped have been followed in the Company.

Government instructions regarding reservation, relaxations, concessions & benefits as provided under Persons with Disabilities (Equal Opportunities, Protection of Rights & Full Participations) Act, 1995 have been complied with.

Statistical information for category wise details of SC/ST employees in the Company is as under:-

Grade General SC %

A 569 165 21.73%

B 53 12 18.18%

C 106 193 15.20%

D 107 13 10.74%

Safai Karamcharis - 12 100%

Total 1790 395 17.73%

Grade ST % Total

A 25 3.29% 759

B 01 1.51% 66

C 15 1.18% 1269

D 01 0.82% 121

Safai Karamcharis - - 12

Total 42 1.88% 2227

PROGRESSIVE USE OF HINDI

The Company has been implementing the provisions of the Official Language Act. Employees are encouraged to use Hindi in their daily working. During the year 2011-2012, Official Language Implementation Committee (OLIC) quarterly meetings were also held to review the progress of official language in the Company. 1st September to 30th September, 2011 was observed as 'Hindi encouragement month' in which various activities and competitions were conducted in which employees took active part. 'Hindi Diwas' was celebrated on 14th September, 2011. During the year, several workshops were organized for promotion of the use of Hindi and to impart computer training to work in Hindi language. Inspections were conducted by the Rajbhasha Cell in RBG/Zones and various divisions at the Corporate Office to oversee the extent of use of official language in day to day working.

VIGILANCE ACTIVITIES

The Vigilance Division undertakes inquiry into transaction in which employee is suspected or alleged to have acted for an improper corrupt purpose or cause such an inquiry or investigation to be made into any complaint of corruption, gross negligence, misconduct, recklessness, lack of integrity or other kind of malpractices or misdemeanors on one's part.

With an ultimate aim of eradicating corruption, a four pronged strategy is followed, which has also been appropriately incorporated in the Annual Action Plan relating to anti-corruption measures viz. (1) Preventive Vigilance, (2) Detective Vigilance & surveillance, (3) Punitive Vigilance & (4) Use of IT innovations to curb malpractices and ensure transparency.

Vigilance Awareness Week was observed in the Company from October 31 to November 5, 2011. Vigilance Souvenir, Posters etc. were also brought out on this occasion.

CORPORATE COMMUNICATION

The company's image building exercise continued to be looked after by the Corporate Communication Division. For wide coverage of various activities and events of the company reliance was placed on appropriate usage of Print & electronic media. In-house journal, brochures, booklets, event specific folders etc. for sharing information about the organization with clients, business associates were brought out during the year.

DIRECTORS' RESPONSIBILITY STATEMENT

In accordance with the provisions of Section 217 (2AA) of the Companies (Amendment) Act, 2000, your Directors hereby report as under:-

a) that in the preparation of annual accounts, the applicable Accounting Standards have been followed along with proper explanation relating to material departure;

b) that the selected Accounting Policies were applied consistently and the Directors made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at 31st March, 2011 and of the profit and loss accounts for the year ended on that date;

c) that proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 1956 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities; and

d) that the Annual Accounts have been prepared on a going concern basis.

AUDITORS

M/s Amit Ray & Co., Chartered Accountants, New Delhi were appointed as Statutory Auditors of the Company for the year 2011 - 2012.

PARTICULARS OF EMPLOYEES

Pursuant to the provision of Section 217 (2A) of the Companies Act, 1956, read with the Companies' (Particulars of Employees) Rules, 1975, as amended from time to time, none of the employees of the Company was in receipt of remuneration of more than Rs.60 lac per annum or Rs.5,00,000/- per month.

ACKNOWLEDGEMENTS

Your Directors sincerely acknowledge the support and co-operation provided by the Ministry of Urban Development, Ministry of Finance, Ministry of Home Affairs, Ministry of Defence, Ministry of Commerce, Ministry of External Affairs and various other Government agencies.

The Directors also wish to thank CAG of India, Chairman & Members of Audit Board, Statutory Auditors for their co-operation and guidance and company's bankers and esteemed clients for their continued support.

Your Directors place on records their sincere appreciation for the valuable contribution and support received from the employees of the company towards growth and progress of the company.

for and on behalf of the Board

Place : New Delhi Vishnu P Das

Dated : July 17, 2012 Chairman-cum-Managing Director


Mar 31, 2008

The Directors have pleasure in presenting the 48th Annual Report on the performance of your Corporation during the financial year ended on March 31, 2008 along with audited Statement of Accounts, Auditors' Report and Review of the Accounts by the Comptroller and Auditor General of India for the reporting period.

During the year 2007-2008, the turnover of your Corporation increased from Rs.1459.93 crores to Rs. 1969.99 crore representing an increase of 35% over the previous year. Gross margin increased by 226% to Rs. 421.54 crore (previous year Rs. 129.42 crore). Net Profit before tax has risen from Rs. 124.35 crore to Rs. 414.89 crore and Net Profit after tax is Rs. 279.83 crore (previous year Rs.80.88 crore).

FINANCIAL RESULTS (Rs. in crore)

INCOME 2006-2007 2007-2008

Turnover

Domestic 1459.93 1969.99

Overseas - -

Other Income 71.03 123.55

Increase/(Decrease) in stock (17.48) (68.57)

Prior Period Income 0.83 (0.08)

Total (1) 1514.31 2024.89

EXPENDITURE

Prime Cost 1246.33 1421.59

Overheads

i) Salary and wages 44.77 76.35

ii) Ex-gratia 1.51 0.80

iii) Write off Sundry Debtors 8.98 44.17

iv) Others 83.30 60.44

Total (2) 1384.89 1603.35

Gross Margin (1-2) 129.42 421.54

Less : Depreciation 2.94 3.09

Less: Interest 2.13 3.56

Net Profit Before Tax (PBT) 124.35 414.89

Less :

i) Income Tax (Overseas) - -

ii) Provision for Current Tax 42.96 132.87

iii) Shortfall in provision for 0.20 - Income Tax in previous year

iv) Provision for Fringe Benefit Tax 0.22 0.34

v) Provision for Deferred Tax 0.09 1.85

_Net Profit After Tax (PAT)

_- For the year 80.88 279.83

New Business secured 2198.35 2772.20

Balance work in hand 3430.13 4233.26

DIVIDEND

Your Corporation declared a maiden dividend on equity shares during the previous year. Your directors have recommended a dividend of Rs. 55.97 crore in the reporting year ( Previous year Rs. 0.90 crore). The dividend will be paid after approval by the shareholders at the Annual General Meeting.

MOU PERFORMANCE

MOU for the year 2008-09 has been signed with the Ministry of Urban Development on 28.3.2008 and following targets have been laid down in the MOU:

Rs. in Crore

Turnover : 1950.00

Order Book : 4660.00

Gross Margin : 150.00

Net Profit : 92.34

During the year 2007-08, your Corporation is likely to achieve 'excellent' rating in keeping with the track record since 2003-04.

ORDER BOOK

Opening balance of workload in hand was Rs. 3430.13 crore. During the year, works of Rs 2772.20 crore were secured and works of Rs. 1969.07 crore were executed. Workload in hand at the close of the financial year ended 31.3.2008 was Rs. 4233.26 crore.

VISION

- Our vision is to be a widely admired and preferred construction services company by setting the highest standards in customer service, reliability, safety and environment stewardship, and cost containment.

MISSION

- To supply customers with practical, secure, innovative and cost- efficient construction products and services that meet their needs as well as providing the necessary supporting infrastructure.

- To act in a socially responsible way to contribute to national wealth, whilst upholding our responsibility for the environment and promoting the well-being of our customers, employees, shareholders and other stakeholders.

- To achieve a premier position by developing and adopting best practices and state-of-the art technology in construction services and related activities for gaining a competitive advantage.

- To deliver value to projects through cost and planning optimization and effective risk management.

- To retain our status as the first ranked company of the Government of India in the filed of Contract and Construction Services.

- To become a Mini Ratna company with international standards of excellence.

- To become a Rs. 4,500 crore company by 2011-12.

BUSINESS STRATEGIES

Timely completion of projects, quality assurance, cost reduction have resulted in achieving greater customer satisfaction and generated business on repeat order basis from the clients. Following business strategies have been adopted by your Corporation :

1. Implementation of the concept of "Cost to Completion" (CTC).

2. Introduction of Computerised Project Management and Web based monitoring system.

3. 'A', 'B', 'C' categorisation of projects and close monitoring of projects depending upon their criticality.

4. Proactive approach and constant liaison with clients.

5. Implementation of Funds Management at the Corporate level for effective utilisation and exercising better control on financial resources.

6. Introduction of 'Labour in Prime Cost' concept, making it obligatory on contractor to engage departmental labour resulting in utilisation of surplus labour and reducing overheads on account of idle wages.

ISO CERTIFICATION

ISO 9001 Certification has been awarded to your Corporation for its Project Management and Consultancy Divisions. The Corporate Mission enshrines building a high degree of customer satisfaction and providing services conforming to ISO 9001: 2000 series. License for quality management system issued by the Bureau of Indian Standards is valid upto 29.3.2011.

CONSULTANCY DIVISION

Consultancy Division at the Corporate Office, a separate profit centre is equipped with latest software for drafting and designing. Recently, the Consultancy Division diversified its activities into Environmental Engineering field, designed water supply scheme for the State of Tripura and infrastructure projects for the State of Jammu & Kashmir and submitted DPR for projects of over Rs.700 crores. Against target of Rs.2 crores, turnover achieved by the Consultancy Division during the reporting period was Rs.2.41 crores.

SAFETY MANAGEMENT

Management is fully committed to ensure safe working conditions at all work sites. A full fledged and dedicated "Safety Management Cell" is operational at the Corporate Office to spread the awareness of "Safety" in all spheres of activity.

The statutory requirement for ensuring safe working conditions at the construction sites, is being propagated to all NBCC Officials. Lectures/Presentations on "Safety" were organized in the "Annual Review Meeting" attended by all Zonal Heads and Heads of Strategic Business Group & Regional Business Group.

CORPORATE GOVERNANCE

Your Corporation is engaged in implementing the best practices on Corporate Governance with philosophy based on transparency, disclosures and reporting which conforms fully with laws, regulations and guidelines. Objective is to create value for the stakeholders while being a responsible corporate citizen. In preparation of Annual Report, the Accounting Standards issued by the Institute of the Chartered Accountants of India have been followed. Project Incharges and other functionaries in the Corporation are required to comply with provisions of the works manual. In view of the organizational changes, Delegation of Powers have been suitably modified from time to time. Guidelines are also being issued by the Vigilance Division for proper execution of works at project sites. On matters of strategic importance involving high stakes, the Sub-committee of Directors with association of experts/consultants have been constituted.

CORPORATE SOCIAL RESPONSIBILITY ACTIVITIES

As a policy, your Corporation is committed to support the principles of Global Compact. Several initiatives in this direction have been taken for execution of works in remote and difficult areas & providing job avenues to the locals; rehabilitation/reconstruction of infrastructure works in areas devastated by natural calamities; border fencing works for national security; and construction of water supply distribution system etc.

TECHNOLOGY UPGRADATION

Your Corporation for successful execution of various construction projects has adopted the following technologies:

- Up flow Anaerobic Sludge Blanket Technology for Sewage Treatment Plant.

- Slip-form & Sliding form technology for high rise structures.

- Incremental launching of girder for bridges and elevated tracks.

- Segmental construction of superstructure in bridges.

- Use of hydraulic rig for piling.

- Use of Tunnel Form Technology for mass housing.

- Horizontal slipping for large dia circular cast-in-situ pipes.

- Adoption of ready mix concrete for major construction projects.

CONSERVATION OF ENERGY

While engaged in service sector, there is limited scope for energy conservation. Emphasis is being laid on employing techniques which result in conservation of energy, such as use of solar energy devices in buildings. At work place, emphasis is more on installation of energy efficient lights and using natural light to a maximum extent. Sewage Treatment Plants executed using UASB technology without any moving parts helps in conservation of electricity.

MANAGEMENT DISCUSSION AND ANALYSIS

Real Estate continues to be a major thrust area for increased volume of turnover and improvement in the profitability. Development of a full fledged ERP system is under implementation covering Corporate and Zonal activities with respect to various functions viz., Finance, HR, Projects, Business Development, Real Estate, Consultancy and Contracts etc. Use of IT systems will enable further transparency, better governance and effective control in the organisation. Five Years Corporate Plan has been drawn for the period 2007-2012.

HUMAN RESOURCE DEVELOPMENT & TRAINING

Human Resource Development continued to be accorded high priority with emphasis on improving skill, competence and knowledge through regular training and professional development programmes. A total of 962 training man-days, covering 577 man-days under in-house training programmes and 385 man-days under external training programmes were achieved during the year. During the year, 71 workshops/seminars/ lectures and programmes were conducted through in-house and external agencies on different subjects in which 719 officials were trained

MANPOWER

Total strength of regular employees of the Corporation as on 31.3.2008 stood at 2388. The category-wise position in respect of regular employees is as under:

GROUP-A GROUP-B GROUP-C GROUP-D TOTAL

660 164 990 574 2388

(36) (13) (27) (27) (103)

(The figure in brackets is in respect of fema e employees).

RESERVATION OF SCHEDULED CASTES AND SCHEDULED TRIBES/ OTHER BACKWARD CLASSES :

Directives issued by the Government of India from time to time for filling up of vacancies for SC/ST/OBC/Ex-servicemen/Physically Handicapped have been followed in the Corporation.

Statistical information in this regarding is given below :-

1. Category wise details of SC/ST employees in the Corporation is as under :-

Group General SC % of SC ST % of Total No. of ST employees

A 523 123 18.63% 14 2.12% 660

B 117 40 24.39% 07 4.26% 164

C 842 140 14.14% 08 0.80% 990

D (Excluding 481 75 13.36% 05 0.89% 561 Sweepers)

D (Sweepers) _ 13 100% - - 13

Total 1963 391 16.37 34 1.42% 2388

PROGRESSIVE USE OF HINDI

During the year 2007-2008, efforts continued in the Corporation towards progressive use of Hindi. OLIC quarterly meetings were also held to review the progress of official language in the Corporation. September,2007 was observed as HINDI encouragement month in which various activities and competition were conducted. Vishwa Hindi Diwas was observed on 10.1.2008. On 18.3.2008, a regional official language workshop was organised at Guwahati. During the year, several workshops to promote the use of Hindi were held and also computer training was imparted for work in hindi language. Inspections were conducted by the Hindi Cell in RBG/Zones and various divisions at the Corporate Office to oversee the extent of use of official language in day to day working.

VIGILANCE ACTIVITIES

The Vigilance Division at Corporate Office is headed by Chief Vigilance Officer, an officer on deputation at the level of Director in the Government of India. Vigilance Division undertakes inquiry into transaction in which employee is suspected or alleged to have acted for an improper corrupt purpose or cause such an inquiry or investigation to be made into any complaint of corruption, gross negligence, misconduct, recklessness, lack of integrity or other kind of malpractices or misdemeanors on one's part.

With an ultimate aim of eradicating corruption, a four pronged strategy is followed, which has also been appropriately incorporated in the Annual Action Plan relating to anti-corruption measures viz. (1) Preventive Vigilance, (2) Detective Vigilance & surveillance, (3) Punitive Vigilance & (4) Use of IT innovations to curb malpractices and ensure transparency.

'Vigilance Awareness Week' was observed in the Corporation from 12.11.2007 to 16.11.2007 and a souvenir containing important circulars of the CVC, was brought out by the Vigilance Division.

PUBLIC RELATIONS

Public Relations Division continued its sustained efforts to project the image of the Corporation through effective use of print and electronic Media. Films on operational activities of the Corporation have been produced. House journals, brochures, booklets, event specific folders, pamphlets are being regularly published. A few corporate campaigns have also been done as a part of image building exercise.

EVENTS AND OTHER ACTIVITIES

During the year, following events and activities have been organised:

- Foundation Stone laying by Shri Anand Sharma, Hon'ble Minister of State for External Affairs for construction of Transit Accommodation for Ministry of External Affairs in June 1, 2007.

- Organising Maiden Dividend paying event on August 22, 2007.

- Organising JNNURM Conference in Delhi on 9.10.2007.

- Foundation Stone laying by Prof. R S Dhankar, Vice Chancellor of MD University for Faculty of Performing & Visual Arts at the University Campus, Rohtak (Haryana) on 20.10.2007.

- Inauguration of a 3-Day Seminar from 15-17th November, 2007 on Solid Waste Management by H.E. Shri Gaj Singh Ji, former Maharaja of Jodhpur at Jodhpur (Rajasthan)

- Inauguration of B.T. Road Flyover at Imphal (Manipur) by Shri S S Sidhu, H.E. Governor of Manipur on 30.11.2007.

- Inauguration of Married Accommodation Project for Defence personnel at Nasik by Major General R K Hooda, GOC, MG & Area on 6.12.2007.

- Foundation Stone laying for construction of CRPF Group Centre at Greater Noida (UP) by Shri S I S Ahmed, IPS, Director General of CRPF on 10.12.2007.

- Regular coverage of business activities, achievements etc. of the Corporation as also interviews of Chief Executive in the print and electronic media have been arranged.

SERVICE MEMENTOS

Service Mementos were presented to employees on completion of their 25 years of service in the Corporation.

BOARD MEETINGS

During the year Shri Ajay K Garg, appointed as Director(Finance) w.e.f. 19.4.2007. Dr. R K Vats, Joint Secretary & Financial Adviser, Ministry of Urban Development appointed as Director on the Board of the Corporation vice Shri Raghubir Singh, Addl. Secretary & Financial Adviser (Health) & Financial Adviser (UD), who ceased to be Director w.e.f. 4.5.2007.

During the year under report, 9 meetings of the Board of Directors were held on 13.4.07, 17.5.07, 6.7.07, 17.8.07, 3.9.07, 5.9.07, 25.9.07, 18.12.07 and 12.2.08.

DIRECTORS' RESPONSIBILITY STATEMENT

In accordance with the provisions of Section 217 (2AA) of the Companies (Amendment) Act, 2000, your Directors hereby report as under :-

a) that in the preparation of annual accounts, the applicable Accounting Standards have been followed alongwith proper explanation relating to material departure;

b) that the selected Accounting Policies were applied consistently and the Directors made judgements and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Corporation as at 31st March, 2008 and of the profit and loss accounts for the year ended on that date;

c) that proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 1956 for safeguarding the assets of the Corporation and for preventing and detecting fraud and other irregularities; and

d) that the Annual Accounts have been prepared on a going concern basis.

AUDITORS

M/s Dinesh Mehta & Co., Chartered Accountants, New Delhi were appointed as Statutory Auditors of the Corporation for the year 2007- 2008.

PARTICULARS OF EMPLOYEES

Pursuant to the provision of Section 217 (2A) of the Companies Act, 1956, read with the Companies' (Particulars of Employees) Rules, 1975, as amended from time to time, none of the employees of the Corporation was in receipt of remuneration of more than Rs.24 lacs per annum or Rs.2,00,000/- per month.

ACKNOWLEDGEMENTS

Your Directors sincerely acknowledge the support and co-operation provided by the Ministry of Urban Development, Ministry of Finance, Ministry of Home Affairs, Ministry of Defence, Ministry of Commerce, Ministry of External Affairs and various other Government agencies.

The Directors also wish to thank CAG of India, Chairman & Members of Audit Board, Statutory Auditors for their co-operation and guidance and Corporation's bankers, RBI, Exim Bank, Embassies, Protector of Emigration, Passport authority for their continued support.

Your Directors also take this opportunity to place on record their sincere appreciation for the hard work and efforts put in by all the members of NBCC family towards the growth and progress of the Corporation.

For & on behalf of the

Board of Directors

Place : New Delhi (Arup Roy Choudhury)

Dated: Chairman-cum-Managing Director


Mar 31, 2006

The Board of Directors take great pleasure in presenting the 46th Annual Report on the performance of your Corporation during the financial year ending 31st March, 2006 alongwith audited Statement of Accounts, Auditors' Report and Review of the Accounts by the Comptroller and Auditor General of India.

YEAR IN RETROSPECT

During the year 2005-2006, your Corporation achieved a tremendous growth in its operations- turnover for the first time surpassed a thousand crore mark with actual turnover of Rs. 123569.92 lakhs representing 58.82% increase over the previous year turnover of Rs.77802.57 lakhs. Net Profit after tax increased by Rs. 1257.62 lakhs from Rs.1545.84 lakhs to Rs. 2803.46 lakhs thus registering increase of 81.35%. Gross margin of Rs.5205.26 lakhs has also shown substantial improvement over the previous year. With these encouraging results, the networth of the Corporation has risen to Rs. 7331.89 lakhs.

During the reporting year, new business of Rs.215929.00 lakhs was secured as under :-

(Rs. in lakhs)

Clients Project description Value

MOUD/MOUE&PAU Infrastructure development projects 55910 in North East and Solid Waste Management Projects etc.

MHA Border fencing works in Assam, 51080 Meghalaya & Tripura

Other Central/State Construction of Institutional and 23073 Govt. Ministries Office Buildings etc.

BHEL Construction of Civil works and Coal 17977 & Ash handling Plant at Chandrapura, TPS,Jharkhand

ONGC PMC work of ONGC energy centre and 9000 corporate office of ONGC Group of Companies and Up-gradation /Modification of Juhu Helibase, Mumbai for ONGC.

Other PSUs Construction of residential, 54550 institutional & factory buildings etc.

Maintenance works 4339

FINANCIAL PERFORMANCE

(Rs. In lakhs)

2005-2006 2004-2005

INCOME

Turnover

- Domestic } 123547.34 77701.60

- Overseas } 22.58 100.97

Other receipts 8463.62 3060.91

Increase/(Decrease) in stock (389.71) (800.35)

Prior Period adjustment (Net) 76.59 95.75

Total (1) 131720.42 80158.88

EXPENDITURE

Prime Cost 110657.27 67671.92

Overheads

i) Salary and wages 4593.98 4321.95

ii) Ex-gratia 120.84 172.19

iii) Write off Sundry Debtors 5275.14 929.72

iv) Others 5867.93 3214.90

Total (2) 126515.16 76310.68

Gross Margin (1-2) 5205.26 3848.20

Less : Depreciation 449.50 316.77

Less : Interest 788.45 1008.57

Net Profit Before Tax (PBT) 3967.31 2522.86

Less :

i) Income Tax (Overseas) 4.33 9.77

ii) Provision for Current Tax 972.33 991.66

iii) Shortfall in provision for Income 60.81 - Tax in previous year

iv) Provision for Fringe Benefit Tax 20.00 -

v) Provision for Deferred Tax 106.38 (24.41)

Net Profit After Tax (PAT)

- For the year 2803.46 1545.84

- Cumulative (-) 4633.32 (-) 7436.78

New Business secured 125011.00 134078.20

Balance work in hand 269170.78 176811.70

Net profit before tax increased by 57.25% to Rs. 3967.31 lakhs (previous year Rs. 2522.86 lakhs) and net profit after tax increased by Rs.1257.62 lakhs representing an increase of 81.35% over the previous year.

DUES OUTSTANDING

The outstanding dues in respect of works executed in Iraq amounting to Rs.5234.41 lakhs and Libya Rs.5888.46 lakhs are not forthcoming due to US Sanctions. Necessary assistance for realization of these dues has been sought at the Government and Diplomat level.

Outstanding dues in respect of domestic/overseas operations carried out in the past continues to be alarmingly high. The amount outstanding is of the order of Rs.37122.25 lakhs (domestic operations Rs.37080.05 lakhs and other overseas operations Rs. 42.20 lakhs ) as against the amount outstanding in previous year of Rs. 23205.95 lakhs (domestic operations Rs.23134.47 lakhs and other overseas operations Rs. 71.48 lakhs), mostly against the Government Departments and other Agencies. Progress of realisation of dues is being monitored regularly in the Corporate Office at the functional director level for appropriate action.

DIVIDEND

As per requirements of Section 205 of the Companies Act, 1956, declaration of dividend out of its profits for the current year cannot be made unless accumulated losses incurred to the extent of unabsorbed depreciation are set off. Therefore, your Directors have not recommended any declaration of dividend for the financial year 2005-2006.

ORDER BOOK

There was an opening balance of Rs.176811.70 lakhs. During the year 2005-06, your Corporation secured new works of Rs 215929.00 lakhs and works amounting to Rs.123569.92 lakhs were executed during the reporting period. Balance workload in hand at the close of the financial year ended 31.3.2006 was Rs.269170.78 lakhs.

MEMORANDUM OF UNDERSTANDING

MOU for the year 2006-07 has been signed on 29.3.2006 with the Ministry of Urban Development . Following targets have been laid down in the MOU:

(Rs. in lakhs)

Turnover 86500

Business Development 210310

Gross Margin 1900

Net Profit 748

During the year 2005-06, the Corporation is likely to achieve 'excellent' rating.

CORPORATE VISION-2010

The Corporate Vision is as under :

To improve the USP of the Corporation which delivers high quality projects in time and within cost.

To improve the customer relationship and strive for customer satisfaction by proactive approach.

To improve the liquidity and bankability of the Corporation by a four pronged approach :

i) Expansion of business in Project Management & Consultancy by capitalizing on ISO-9001 accreditation. Thus, further improving credibility of the Organisation as a techno professional body.

ii) Striving hard for developing Real Estate projects for fruitful commercial exploitation of available land so as to generate handsome profit, off-set overhead cost and accumulated losses.

iii) Selectively taking up works on tendered basis.

iv) Building a highly receptive, informative and professionally charged Organisation by introducing modern project management concepts and exploiting development in information technology sector by introducing Web based monitoring and communication systems, LAN based information sharing systems, SAP based financial and personnel management system.

To improve the rating of the Corporation both in terms of specified and implied needs of the customer by regular modernization, training, interactive session and lateral induction of ideas and thoughts.

To instil a commitment in the Organisation to make it more transparent, dynamic and result-oriented.

MANAGEMENT DISCUSSION AND ANALYSIS

Your Corporation has identified Real Estate and Power Sector as major thrust areas for achieving quantum jump in the turnover and for overall improvement in the bottom line. Government has accorded its approval to NBCC to foray into the Power Projects. On real estate front, foundation stone of the prestigious NBCC VIBGYOR TOWERS being developed on 10 acres of land at Rajarhat, Kolkata was laid down on 21.2.2006. Cabinet has approved the NBCCs proposal for construction of 492 type VI, VII and VIII houses for Ministers & Senior Officers of Central Government on Shanti Path-Vinay Marg, a prime location in Delhi. This is the first of its kind project by the Central Govt. wherein part of the land of the project will be utilized as resource to generate funds for the construction and development of the project. Further, all possibilities are being explored for developing overseas business and for this purpose your Corporation is in the process of setting up an office in Abu Dhabi. A turnover target of Rs. 5000 crores plus has been set up by the end of next five years period.

BUSINESS STRATEGIES

Timely completion of projects, quality assurance, cost reduction have achieved greater customer satisfaction and also helped in repeat orders from your valued clients through the following business strategies:

1. Introduction of the concept of "Cost to Completion" (CTC).

2. Introduction of Computerised Project Management and Web based monitoring system.

3. 'A', 'B', 'C' categorisation of projects and close monitoring of projects depending upon their criticality.

4. Proactive approach and constant liaison with clients.

5. Introduction of Funds Management at the Zonal level (ultimately to be centralized at the Corporate level) for effective utilisation and exercising better control on financial resources.

6. Introduction of 'Labour in Prime Cost' concept, making it obligatory on contractor to engage departmental labour resulting in utilisation of surplus labour and reducing overheads on account of idle wages.

ISO CERTIFICATION

NBCC obtained ISO 9001 Certification for its Project Management and Consultancy Divisions. The Corporate Mission enshrines building a high degree of customer satisfaction and providing services conforming to ISO 9001: 2000 series. Licence for quality management system issued by the Bureau of Indian Standards is valid upto 28th March, 2008.

CORPORATE GOVERNANCE

Towards good governance practices, emphasis is being laid in the Corporation on facets of observing transparency, accountability and proper disclosure. Accordingly, appropriate changes have been brought in various formats devised for Management Information System. The Project Incharges and other functionaries in the Corporation are required to comply with provisions of the works manual. In view of the organizational changes, Delegation of Powers have been suitably modified from time to time. Guidelines are also being issued by the Vigilance Division for proper execution of works at project sites.

CORPORATE SOCIAL RESPONSIBILITY ACTIVITIES

NBCC is committed to support the principles of Global Compact. As per Corporation's policy, NBCC has taken several initiatives in this direction by undertaking execution of works in remote and difficult areas & providing job avenues to the locals; rehabilitation/reconstruction of infrastructure works in areas devastated by natural calamities; border fencing works for national security; and construction of water supply distribution system etc.

During the previous year, some of the activities undertaken in relation to implementation of Global Compact principles are outlined below:

1. As a policy matter, NBCC is operating in remote areas where other construction agencies dare not venture into. In the North East Region of the country, NBCC has helped in upliftment of socio economic status of skilled/unskilled persons engaged locally on Corporation's work site both on-going and completed projects in all the 7 states of North East.

2. In the earthquake ravaged areas of Jammu & Kashmir, NBCC has constructed community shelters with kitchen and toilets blocks at a cost of 678.56 lakhs for providing immediate relief to the affected people on no profit basis. Few of the community centres were erected in remote areas having no motorable roads where the construction material was physically lifted and taken to sites.

3. Being conscious about the need for continuous upgradation of skills and knowledge of employees both in-house and external training programmes were organised/arranged.

4. NBCC has on its rolls number of physically challenged persons in its work force. Besides, the Corporation is laying emphasis on promotion of interest of economically weaker and backward classes of the society through the implementation of its commitment to the 'Reservation Policy'.

5. Construction of schools and dispensaries in earthquake affected area of Gujarat and in cyclone affected areas of Orissa, on no profit basis valuing Rs.1869.83 lakhs were executed.

6. All employees of the company had contributed their one day salary besides Corporation's share of contribution for providing relief to the earthquake ravaged areas of Jammu & Kashmir.

7. NBCC Prize for Excellence carrying cash award of Rs.2000/- and a certificate was given to the best student of M.Tech. Programme run by Deptt. of Civil Engineering, Indian Institute of Technology, Delhi.

TECHNOLOGY UPGRADATION

Your Corporation for successful execution of various construction projects has adopted the following technologies:

- Upflow Anaerobic Sludge Blanket Technology for Sewage Treatment Plant.

- Slip-form & Sliding form technology for high rise structures.

- Incremental launching of girder for birdges and elevated tracks.

- Segmental construction of superstructure in bridges.

- Use of hydraulic rig for piling.

- Use of Tunnel Form Technology for mass housing.

- Horizontal slipping for large dia circular cast-in-situ pipes.

- Adoption of ready mix concrete for major construction projects.

CONSERVATION OF ENERGY

NBCC, engaged in service sector, has limited scope for energy conservation. Emphasis is being laid on employing techniques which result in conservation of energy, such as use of solar energy devices in buildings. At work place, emphasis is more on installation of energy efficient lights and using natural light to a maximum extent. Sewage Treatment Plants executed by NBCC using UASB technology without any moving parts helps in conservation of electricity.

FOREIGN EXCHANGE EARNINGS AND OUTGO

Your Corporation earned Rs. 1206.76 lakhs and incurred an expenditure of Rs. 3980.86 lakhs in foreign exchange as per details furnished in Item No. 26 D&E Notes to the Accounts (Schedule 22 ) forming part of the Accounts.

HUMAN RESOURCE DEVELOPMENT & TRAINING

Human Resource Development continued to be accorded high priority with emphasis on improving skill, competence and knowledge through regular training and in-house/outside faculty professional development programmes. In-house and external training programmes were organised during the year. The employees management relation remained very harmonious. Periodically, discussions were held between the Management and representative of various Trade Unions on issues relating to general welfare of the staff and workers.

Consultative and Participative Management style has been implemented for achieving the Corporate goals. The morale of the employees remained high which contributed positively in the progress of the Corporation.

MANPOWER

Total strength of regular employees of the Corporation as on 31.3.2006 stood at 2527. The category-wise position in respect of regular employees is as under:

GROUP-A GROUP-B GROUP-C GROUP-D TOTAL

634 230 1015 648 2527

(22) (21) (32) (29) (104)

(The figure in brackets is in respect of female employees).

RESERVATION OF SCHEDULED CASTES AND SCHEDULED TRIBES/ OTHER BACKWARD CLASSES :

Directives issued by the Government of India from time to time for filling up of vacancies for SC/ST/OBC/Ex-servicemen/Physically Handicapped have been followed in the Corporation.

Statistical information in this regarding is given below :-

Category of General SC %age of ST %age of Total no. of employees SC ST employees

Group-A 506 113 17.82 15 2.37 634

Group-B 166 57 24.78 07 3.04 230

Group-C 860 142 13.99 13 1.28 1015

Group-D 547 96 14.81 05 0.77 648

Grand Total 2079 408 16.14 40 1.58% 2527

PROGRESSIVE USE OF HINDI

During the year 2005-2006, efforts continued in the Corporation towards progressive use of Hindi. During the year, OLIC quarterly meetings were also held to review the progress of official language in the Corporation. "HINDI DIWAS" was celebrated on 14.9.2005. On this occasion, competition was held to test the knowledge of official language and computer usage for hindi applications.

"Hindi Pakhwara" was organised from 14.9.2005 to 21.9.2005 and competitions were conducted in which employees took active part. Cash prizes were later on awarded to the winners. During the year under report, several inspections were conducted by the Hindi Cell in Zones and various Divisions at the Corporate Office to oversee the extent of use of official language in day to day working.

VIGILANCE ACTIVITIES

The Vigilance Division at Corporate Office is headed by Chief Vigilance Officer, an officer of the level of Joint Secretary in the Government of India, on deputation from the Ministry of Railways. Complaints received from within the Corporation, Members of public, Central Bureau of Investigation, Central Vigilance Commission, Clients and Ministry of Urban Development are probed and investigations are conducted and wherever lapses are noticed, disciplinary proceedings are initiated against the delinquent employees.

With a view to eradicate corruption amongst the employees of the Corporation, a three pronged strategy, as under, is followed :

1. Preventive Vigilance.

2. Detective Vigilance and Surveillance.

3. Punitive Vigilance.

Preventive Vigilance ensuring measures to reduce and eliminate corruption is practised in the Corporation by way of regular and surprise inspection of sensitive and corruption prone areas by the Officers of Vigilance Division apart from the functioning of other teams/agencies.

Through strict surveillance, execution of sub-standard work and unethical practices have been checked to a great extent, thus resulting in substantial savings to the Corporation and steps have also been taken to avoid recurrence of such irregularities.

On the punitive side, on the basis of reports received from the Chief Technical Examiner of Central Vigilance Commission as well as on the basis of our own internal investigations, disciplinary proceedings against the defaulters have been initiated and these are constantly monitored so as to punish the guilty expeditiously.

NBCC observed 'Vigilance Awareness Week' from in its Corporate, RBG & Zonal Offices all over the country from 1.7.2005 to 11.7.2005 . The event, at the Corporate Office started with taking pledge by the employees. Vigilance Awareness posters and a Souvenir were brought out on the occasion. Presentations and interactive session were also arranged. As a part of Vigilance Awareness Week Celebrations, Vigilance Division of the Corporation also brought out a Compendium of Circulars issued by CVC during July, 2004 to September, 2005.

PUBLIC RELATIONS

The Corporate Public Relations Division continued to make sustained efforts to project the image of the Corporation through effective use of print and electronic Media. NBCCs activities, achievements and its new strategies, initiatives etc. were effectively carried out by the media during the year.

PUBLICATIONS

The Public Relations Division publishes an in-house Journal - 'NBCC NEWS'. This regular publication highlighted the operational activities of the Organisation as also reported new initiatives for growth and events taken place within the Organisation during the year. For prompt dissemination of information, the NBCC News is now being brought out 'monthly' instead of 'quarterly'.

EXHIBITION

Your Corporation participated in the North East Trade Expo 2005 held at Pragati Maidan, New Delhi from 7-14 March, 2005, jointly organised by the Ministry of Development of North Eastern Region (DONER) and ITPO. This platform was used by NBCC to display exhibits of various completed and on-going infrastructure development projects in all the North Eastern States including Sikkim. The Corporation also participated in the State Science Fair organised by Tripura State Council for Science & Technology at Agartala from January 5-10, 2006. NBCC participation in the exhibition provided it an opportunity to showcase its huge stake in the development of Tripura as also the whole of North Eastern Region.

EVENTS

- Kumari Selja, Hon'ble Minister of State for Urban Employment & Poverty Alleviation, Govt. of India unveiled the foundation stone for Slum Upgradation Projects at Aizawl (Mizoram).

- Ms Sashi Sarin, Director, EIA unveiled the foundation stone for Office Building of Export Inspection Agency at Chennai.

- Kumari Selja, Hon'ble Minister of State for Urban Employment & Poverty Alleviation, Govt. of India inaugurated the Housing Complex for Urban Poor at Borsojai, Guwahati on April 11,2005.

- Shri Kamal Nath, Hon'ble Union Minister of Commerce & Industry, Govt. of India inaugurated the Intellectual Property Office (IPO) Building at Dwarka, New Delhi on 29.8.2005, Kolkata on 28.10.2005 and Chennai on 21.10.2005.

- Chief Secretary, Govt. of Mizoram inaugurated the All India Services Officers Transit Accommodation at Aizawl( Mizoram).

- Shri Virbhadra Singh, Hon'ble Chief Minister, Himachal Pradesh inaugurated the Sewage Treatment Plant, Simla on 1.10.2005.

- NBCC signed MoU with ONGC on 12.9.2005 for construction of "Green Energy Efficient, Intelligent and Barrier Free Office Buildings in New Delhi and Mumbai". The execution of these social projects would be in line with the "US Green Building Council's (USGBC) Leadership in Energy and Environment Design Programme (LEED) Platinum Rating.

- Shri Virbhadra Singh, Hon'ble Chief Minister, Himachal Pradesh, performed 'Bhoomi Puja' for construction of Distance Education and Open Learning Study Centre, Himachal Pradesh University at NOIDA.

- Shri Jaipal Reddy, Hon'ble Minister for Urban Development, Govt. of India & Shri Buddhadeb Bhattacharjee, Hon'ble Chief Minister of West Bengal, unveiled the Foundation Plaque of NBCC VIBGYOR TOWERS, Rajarhat (Kolkata) on 21.2.2006.

- Lt. Gen. P.R. Gangadharan, AVSM, VSM, General Officer Commanding, 12th Corps, laid the Foundation Stone of the Married Accommodation Project for Defence Personnel at Jodhpur.

- NBCC celebrated its 46th Foundation Day, the 15th November. A function on this occasion was organised at the Corporate Office on 14.11.2005.

VISITS

- Shri Anil Baijal, Secretary, Urban Development visited NBCC's UD Projects in the State of Assam & Meghalaya on 26-27 May, 2005.

- Shri Neiphin Rio, Hon'ble Chief Minister of Nagaland visited Sainik School Project at Punglwa (Nagaland) on 10.2.2006.

AWARDS

- Shri Oscar Fernandes, Hon'ble Minister of State (Independent Charge) for Stastistics & Programme Implementation, Govt. of India, gave away the prestigious Best Chief Executive Gold Award on November 6, 2005. The award has been conferred on Shri Arup Roy Choudhury for his outstanding contribution in turning around NBCC.

- Shri Subodh Kant Sahai, Hon'ble Minister of State for Food Processing Industries, Govt. of India, gave away the prestigious Best Technocrat Award to Shri Arup Roy Choudhury, CMD, NBCC on December 8, 2005. Instituted by the Creative Foundation, New Delhi. The award was presented at a National Seminar held in New Delhi.

SERVICE MEMENTOS

Service Mementos were presented to employees on completion of their 25 years of service in the Corporation as on 31.3.2005.

PERFORMANCE LINKED MEMENTOS

The excellent financial performance by the Corporation during the year brought in pride to the employees who made it happen. In recognition , mementos in the form of a wall-clock with NBCC logo printed on dial, were presented to all employees of the Corporation.

MEDIA CAMPAIGN

- In order to give a wide publicity to the launch of NBCC VIBGYOR TOWERS, KOLKATA - The maiden residential Realty Scheme of the Corporation, a pre- launch massive campaign was organised in October, 2005 in Delhi & Calcutta by way of displaying banners, posters and putting up stalls at various festival spots and exhibitions etc. A planned print media campaign was also organised for the purpose.

- To project NBCC's thumping business success over the past 4-5 years as also its growing contribution in the development of the Nation, specific initiatives by way of organizing CMD's interviews in the leading national dailies & magazines were taken up. News Items were also carried in all frontline newspapers both National & Regional.

- Event specific Foundation Stone Laying & Inauguration were also brought out depicting project details.

BOARD MEETINGS

The Board of Directors place on record the valuable guidance and support given by your Directors. Smt. Neena Garg, Joint Secretary & FA, Ministry of Urban Development was appointed as Director on Board of the Corporation vice Shri Ajeer Vidya, Joint Secretary & FA, Department of Information Technology who ceased to be the Director in NBCC w.e.f. 21.4.2005. Shri S.M. Acharya, Additional Secretary (UD), Ministry of Urban Development was appointed as Director on Board of the Corporation vice Shri P.K. Pradhan, Joint Secretary (D&L) w.e.f. 23.3.2006. Shri S. Shankar, Director(Projects) ceased to be the Director of the Corporation on attaining his superannuation on 31.12.2005.

During the year under report, 9 meetings of the Board of Directors were held on 14.4.2005, 24.6.2005, 20.7.2005, 8.9.2005, 14.12.2005, 20.1.2006, 27.1.2006, 11.3.2006 and 23.3.2006.

DIRECTORS' RESPONSIBILITY STATEMENT

In accordance with the provisions of Section 217 (2AA) of the Companies (Amendment) Act, 2000, your Directors hereby report as under :-

a) that in the preparation of annual accounts, the applicable Accounting Standards have been followed alongwith proper explanation relating to material departure;

b) that the selected Accounting Policies were applied consistently and the Directors made judgements and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Corporation as at 31st March, 2006 and of the profit and loss accounts for the year ended on that date;

c) that proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 1956 for safeguarding the assets of the Corporation and for preventing and detecting fraud and other irregularities; and

d) that the Annual Accounts have been prepared on a going concern basis.

AUDITORS

M/s Dinesh Mehta & Co., Chartered Accountants, New Delhi were appointed as Statutory Auditors of the Corporation for the year 2005-2006.

PARTICULARS OF EMPLOYEES

Pursuant to the provision of Section 217 (2A) of the Companies Act, 1956, read with the Companies' (Particulars of Employees) Rules, 1975, as amended from time to time, none of the employees of the Corporation was in receipt of remuneration of more than Rs.24 lacs per annum or Rs.2,00,000/- per month.

ACKNOWLEDGEMENTS

Your Directors sincerely acknowledge the support and co-operation provided by the Ministry of Urban Development, Ministry of Finance, Ministry of Home Affairs, Ministry of Defence, Ministry of Commerce, Ministry of External Affairs and various other Government agencies.

The Directors also wish to thank CAG of India, Chairman & Members of Audit Board, Statutory Auditors for their co-operation and guidance and Corporation's bankers, RBI, Exim Bank, Embassies, Protector of Emigration, Passport authority for their continued support.

Your Directors also take this opportunity to place on record their sincere appreciation for the hard work and efforts put in by all the members of NBCC family towards the growth and progress of the Corporation.

For & on behalf of the

Board of Directors

(Arup Roy Choudhury)

Chairman-cum-Managing Director

Place : New Delhi

Dated: 11th July, 2006


Mar 31, 2005

The Board of Directors take great pleasure in presenting the 45th Annual Report on the performance of your Corporation during the financial year ending 31st March 2005 along with audited Statement of Accounts, Auditors' Report and Review of the Accounts by the Comptroller and Auditor General of India.

YEAR IN RETROSPECT

During the year 2004-2005, your Corporation registered an impressive performance on all fronts. Turnover increased by 17.77% from Rs.6606.19 million to Rs.7780.2 million. Gross margin increased by 149.92%, net profit before tax increased b 136.46% and net profit after income-tax increased by 3.25% over the previous year. During the reporting year, new business of Rs. 13407.82 million was secure as under:-

(Rs. in million) Clients Project Description Value

Ministry of Home Affairs Construction of Fencing 5749.70 along Indo-Pak & Indo- Bangladesh Border

Ministry of Ruraloads Construction of Roads 3450.00 under Pradhan Mantri Gram Sadak Yojna in Bihar & Tripura.

Ministry of Urban Develop- Infrastructure Development 1821.32 ment works in North East Region BHEL Construction of Civil & 1622.04 Architectural work of Power House Transformer Yard.

NTPC Construction of Chimneys 365.66

APGENCO Construction of Chimney & 292.80 Natural Draught Cooling Tower

MSEB Construction of Chimney 106.30

FINANCIAL PERFORMANCE

(Rs. in million) 2004-2005 2003-2004

INCOME

Turnover

- Domestic 7770.16 6587.63

- Overseas 10.10 18.56

Other receipts 306.09 267.16

Increase/(Decrease) in stock (80.04) (215.33)

Prior Period adjustment (Net) 9.58 12.85

Total (1) 8015.89 6670.87 EXPENDITURE

Prime Cost 6767.19 5679.61 Overheads

i) Salary and wages 432.19 444.88 ii) Ex-gratia 17.22 29.01

iii) Write off Sundry Debtors 92.97 70.88

iv) Others 321.50 292.51

Total (2) 7631.07 6516.89

Gross Margin (1-2) 384.82 153.98

Less : Depreciation 31.68 41.17

Less : Interest 100.85 6.07

Net Profit Before Tax (PBT) 252.29 106.74

Less :

i) Income Tax (Overseas) 0.98 1.04

ii) Provision for Current Tax 99.17 14.36

Add :

iii) Provision for Deferred Tax 2.44 58.38 Net Profit After Tax (PAT)

- For the year 154.58 149.72

- Cumulative (-) 743.68 (-) 898.26

New Business secured 13407.82 6910.00

Balance work in hand 17681.17 12053.61

Net profit before tax increased by 136.46% to Rs. 252.29 million (previous year Rs. 106.74 million) and net profit after tax increased by Rs. 4.86 million representing an increase of 3.25% over the previous year.

In the light of its policy laid down in the National Common Minimum Programme, the Government of India has decided not to pursue the proposed divestment of its 74% equity through strategic sale in your Corporation.

DUES OUTSTANDING

The position in respect of realization of outstanding dues from Iraq amounting to Rs.700.14 million and Libya Rs.814.38 million remain unchanged from the previous year. Necessary, assistance at the Government and Diplomatic level was sought for realization of these dues, but so far positive results have not been achieved.

As against the completed works of Rs.7780.26 million during the year, major portion of dues have been realized and efforts are being made to ensure that least current dues do not run into arrears. However, outstanding dues in respect of domestic/overseas operations carried out in the past continues to be alarmingly high. The amount outstanding is of the order of Rs.2320.60 million (domestic operations Rs. 2313.45 million and other overseas operations Rs. 7.15 million) as against the amount outstanding in previous year of Rs. 2337.05 million (domestic operations Rs.2324.63 million and other overseas operations Rs. 12.42 million), mostly against the Government Departments and other Agencies. Progress of realization of dues is being monitored regularly in the Corporate Office at the Functional Director level for appropriate action.

DIVIDEND

As per requirements of Section 205 of the Companies Act, 1956, declaration of dividend out of its profits for the current year cannot be made unless accumulated losses incurred to the extent of unabsorbed depreciation are set off. Therefore, your Directors have not recommended any declaration of dividend for the financial year 2004-2005.

ORDER BOOK

Orders of Rs. 12053.61 million were available in the beginning of the year. Your Corporation secured new works of Rs 13407.82 million and works amounting to Rs.7780.26 million were executed during the reporting period. Balance work of Rs.17681.17 million was in hand at the close of the financial year ended 31.3.2005.

MEMORANDUM OF UNDERSTANDING

MOU for the year 2005-06 has been signed with the Ministry of Urban Development. Following targets have been laid down in the MOU:

Rs. in million

Turnover 7200.00

Business Development 18000.00

Gross Margin 166.00

Net Profit 46.20

During the year 2004-05, the Corporation is likely to achieve 'excellent' rating. CORPORATE VISION-2010

The Corporate Vision is as under :

To improve the USP of the Corporation which delivers high quality projects in time and within cost.

To improve the customer relationship and strive for customer satisfaction by proactive approach.

To improve the liquidity and bankability of the Corporation by a four pronged approach :

i) Expansion of business in Project Management & Consultancy by capitalizing on IS0-9001 accreditation. Thus, further improving credibility of the Organization as a techno professional body.

ii) Striving hard for developing Real Estate projects for fruitful commercial exploitation of available land so as to generate handsome profit, off-set overhead cost and accumulated losses.

iii) Selectively taking up works on tendered basis.

iv) Building a highly receptive, informative and professionally charged Organization by introducing modern project management concepts and exploiting development in information technology sector by introducing Web based monitoring and communication systems, LAN based information sharing systems, SAP based financial and personnel management system.

To improve the rating of the Corporation both in terms of specified and implied needs of the customer by regular modernization, training, interactive session and lateral induction of ideas and thoughts.

To instil a commitment in the Organization to make it more transparent, dynamic and result-oriented.

DIRECTORS' RESPONSIBILITY STATEMENT

In accordance with the provisions of Section 217 (2AA) of the Companies (Amendment) Act, 2000, your Directors hereby report as under :-

a) that in the preparation of annual accounts, the applicable Accounting Standards have been followed along with proper explanation relating to material departure;

b) that the selected Accounting Policies were applied consistently and the Directors 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 Corporation as at 31st March, 2005 and of the profit and loss accounts for the year ended on that date;

c) that proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 1956 for safeguarding the assets of the Corporation and for preventing and detecting fraud and other irregularities; and

d) that the Annual Accounts have been prepared on a going concern basis.

AUDITORS

M/s Dines' Mehta & Co., Chartered Accountants, New Delhi were appointed as Statutory Auditors of the Corporation for the year 2004-2005.

PARTICULARS OF EMPLOYEES

Pursuant to the provision of Section 217 (2A) of the Companies Act, 1956, read with the Companies' (Particulars of Employees) Rules, 1975, as amended from time to time, none of the employees of the Corporation was in receipt of remuneration of more than Rs.24 lacs per annum or Rs.2,00,000/- per month.

ACKNOWLEDGEMENTS

Your Directors sincerely acknowledge the support and co-operation provided by the Ministry of Urban Development, Ministry of Finance, Ministry of Home Affairs, Ministry of Defence, Ministry of Commerce, Ministry of External Affairs and various other Government agencies.

The Directors also wish to thank CAG of India, Chairman & Members of Audit Board, Statutory Auditors for their co-operation and guidance and Corporation's bankers, RBI, Exam Bank, Embassies, Protector of Emigration, Passport authority for their continued support.

Your Directors also take this opportunity to place on record their sincere appreciation for the hard work and efforts put in by all the members of NBCC family towards the growth and progress of the Corporation.

For & on behalf of the Board of Directors

Chairman-cum- Mart aging Director

Place: New Delhi Dated:


Mar 31, 2004

The Board of Directors take pleasure in presenting the 44th Annual Report and Accounts for the period ending 31st March, 2004.

YEAR IN RETROSPECT

Performance-wise, the year 2003-2004 had been an impressive year for your Corporation. Turnover increased by 33.70% from Rs.4940.95 million to RS.6606.19 million and profit before tax increased by 43.66% from RS.74.30 million to RS.106.74 million in comparison to the performance achieved in the previous year. The positive working results continuously over the previous three years, has given encouragement for fixing higher growth targets in future. Your Directors take pleasure in informing you that your Corporation has a workload in hand of RS.12053.61 million. During the year under report, new business of Rs 6910.00 million was secured and major share of business comprises of (i) works awarded by the Ministry of Urban Development under non-Iapsable fund valued at RS.1766.1 0 million in the North Eastern States, (ii) Indo-Bangladesh Fencing works awarded by the Ministry of Home Affairs worth RS.1250.00 million in Northern Sector from Ranga to Shivbani 84 KM in Tripura, and (iii) Site leveling work package amounting to RS.1180.00 million of Barh Super Thermal Power Project, Bihar from NTPC.

BUSINESS OUTLOOK

In traditional areas, the construction industry has a very low return on investment involving severe competition. On the other hand, high value infrastructure projects with competition from companies of NBCC's size have good potential' for earning higher profit margins. In large value infrastructure projects, entering into tie-up arrangements with established global players is generally a pre-requisite. Considering this fact, your Corporation is continuing to explore all opportunities for new consortiums and business arrangements. NBCC has formed a joint venture 0 with a Malaysian firm viz. IJM for executing work for DMRC. Efforts are 'also continuing to look for overseas business opportunities specially in Asia- Pacific & African Regions as development of physical infrastructure in this part is in its infancy. Discussions are going on to have joint venture with MIs BAGIS Construction Import Export Trade Company for execution of large scale civil construction projects in Turkey.

In the current fiscal, your Corporation bagged the single largest Engineering, Procurement and Construction (EPC) contract from BHEL of RS.1622.00 million of Civil, Structural and Architectural work of Transformer Yard to Chimney for 2x250MW Unit at Korba, Chattishgarh . Moreover, in this case re-inforcement steel and structure steel is being issued free of cost by BH~L. With this, NBCC will become an EPC Contractor for Power Plants and would be in a position to bid for such projects in future on its own. In the financial year 2004-05, additional works of Rs. 5488.11 million have also been secured. Few of the important projects secured are as follows:

Name of the work Value (Rs. in million)

Construction of Rural Roads in West Tripura District under Pradhan Mantri 2250.00

Gram Sadak Yojana (PMGSY)- 757 KMs

Construction of Border Fecing in Western Sector from 1300.00

Kamla Sagar to Nirbhayapur 75.60 Km in Tripura for Ministry of Home Affairs.

Supply of Pre-fabricated Super Structure of CRC and IARH 592.40 at Imphal for Manipur Sericulture Project

Construction of Nagaland University at Nagaland 450.00

Three nos. Chimney and Chimney Elevator Packages for 365.67 Thermal Power Project for NT PC

OPERATIONAL PERFORMANCE

Following projects were successfully completed during the year and handed-over to our esteemed

Clients: Name of the Project Clients Value No (Rs. in Million)

1. Indo Bangladesh Border Fencing Work - Min. of Home Affairs 1330.29 Tripura Western Sector(O) & (A) and Northern Sector(A)

2. Providing of Project Management Service for Construction New Okhla Industrial 1012.68 of flats and Development Works in NOIDA (UP) Development Authority

3. Modernisation of Currency Note Press Nasik Road CNP/Min. of Finance 409.16

4. Construction of Staff Quarters & Hostel LBS CAMSAR Building for LBS - CAMSAR at Sewree, Mumbai (under DG Shipping) 243.00

5. MEPZ SDF III Works, Chennai(83 Modules) MEPZ Chennai- MOC 207.16

6. CAU Works, Imphal Centrai Agriculture 159.76 University

7. NIFT Works, Bangalore NIFT New Delhi 113.02

8. HAL sa Works, Bangalore HAL Bangalore 100.04

9. Talcher Chimney Works HSCL 83.77

10. Construction of (a) Class Rooms, Community Halls, . Parliament Secretariat 75.90 Social Welfare Centre, Dispensaries in Rajkot & Kutch Distt. (b) I.T.I. Bhuj Dist. Kutch

11. Construction of Parking Lot-cum-Shopping Complex at MOUD & PA 75.30 Police Bazar, Shillong

12. Airport Works, Chennai AAI Chennai 75.28

13. Renovation of New P.G. Section at India Security Press ISP/Min. of Finance 56.07 at Nasik Road

14. EPFO sa Works Nizamabad EPFO New Delhi. 52.45'

15. Laying of OFC cable from Baroda to Nasik GAIL 50.00

A tripartite agreement between OIDC, NBCC and RITES, was entered into in December, 2003 for restoration of the collapsed bridge across Daman Ganga River on cost plus percentage basis. N BCC was engaged as an executing agency while RITES was retained to provide consultancy services for the project. After completion of the work, the same was handed over to OIDC and the bridge was opened for traffic in June 2004. But unfortunately, due to unprecedented and unexpected heavy ~ischarge of water on 2nd, 3rd & 5th August, 2004 from Madhuban Dam on Daman Ganga River about 35KM upstream resulted in collapse of the bridge. A Committee was appointed by RITES to make on the spot assessment which gave its findings that bridge had collapsed due to extra-ordinary heavy pressure of water and not because of any technical fault.

FINANCIAL RESULTS

During the period under review, your Corporation achieved a turnover of Rs 6606.19 million as against Rs.4940.95 million in the previous year and earned profit before tax of RS.1 06.74 million as against RS.74.30 million in the previous year.

Comparative financial results during past two consecutive years are given below'

(Rs. in million)

2003-2004 2002-2003

INCOME

Turnover

4907.70

- Domestic 6587.63

33.25 - Overseas 18.56

162.92 Other receipts 269.69

Increase/(Decrease) in stock (215.33) (122.80)

Prior Period adjustment (Net) 12.85 32.09

5013.16 Total (1) 6673.40

EXPENDITURE

Prime Cost 5679.61 3914.25

Over heads 530.04

i) Salary and wages 444.88 25.26

ii) Ex-gratia 29.01 35.27

iii) Write off Sundry Debtors 70.88 257.56

iv) Others 295.04 257.56

Total (2) 6519.42 476.38,

250.78

Gross Margin (1-2) 153.98 57.64

Less: Depreciation 41.17 118.84

Less: Interest 6.07

Net Profit before Tax (PBT) 106.74 74.30

Less: 2.46

i) Income Tax (Overseas) ii) 1.04

Provision for Current Tax 14.36

Add:

iii) Provision for Deferred Tax 58.38

Net Profit After Tax (PAT)

- For the year 149.72 71.84

- Cumulative (-) 898.26 -

New Business secured 6910.00 1047.98

Balance work in hand 12053.61 10153.90

11749.80 DIVIDEND

As per the provision of Section 205 of the Companies Act, 1956, a company can not declare! pay dividend out of its profits for the current year unless the accumulated losses incurred to the extent of unabsorbed depreciation are set off. Thereof, your Directors have not recommended declaration of any dividend for the financial year 2003-2004.

ORDER BOOK

To the opening balance of Rs 11749.80 million in the beginning of the year, new works of RS.691 0.00 million were added and works of Rs. 6606.19 million were executed during the year under report. Thus, leaving a closing balance of Rs.12,053.61 million at the close of the financial year 2003- 2004.

MAJOR WORKS SECURED DURING THE FINANCIAL YEAR 2003-2004 ARE AS UNDER :

s.No. Name of the Project Clients Value (Rs. in millions)

1 Construction of Border Fencing in Northern Sector Ministry of 1250.00 from Ranga to Shivbani 84 KM in Tripura. Home Affairs

2 Site leveling work package for Barh Super NTPC 1180.00 Thermal Power Project, Bihar.

3 Construction of Elevated Viaduct from KM 0.62 to KM 0.80 DMRC 460.00 on Barakhamba Road - Connaught Place - Dwarka Section (Line- 3) (Total project cost RS.1532.87 million, Executed through a joint venture of IJM- VRM & NBCC's share being 30% of the totar Cost).

4. Construction of Patent Office Complex at Delhi, Kolkata, Ministry of 450.00 Chennai & Mumbai. Commerce

5. Construction of Flyover near Maharani Bridge, Imphal. MOUD&PA 249.30

6. Scheme for Storm Water disposal for Noonmati Areas, Guwahati MOUD&PA 246.90

7. HVAC, Electrical, Interior works of ONGC Office Complex ONGC 235.00 at Dharavi, Mumbai.

8. Storm Drainage Development Scheme for Dimapur Town, MOUD&PA 209.40 Phase-II, Nagaland.

9. Construction of Market for Urban Poor Unemployed Youth & MOUD&PA 197.80 Women Vendors at Purana Bazar, Manipur.

10. Construction of Bus Station at Aizawl, Mizoram. MOUD&PA 183.70

11. Construction and maintenance of work Central Kalahari and Govt. of 170.00 KUTSE Game Reserve Facilities at Botswana. Botswana

12. Construction of Market for Urban Poor Unemployed Youth & Women Vendors at New Market Manipur. MOUD&PA 153.20

13. Sports Complex at Kankar Bagh (Bihar). Govt. of Bihar 140.00

14. Construction of City Centre at Aizawl, Mizoram MOUD&PA 123.70

15. Construction of 350 Seater Boys Hostel, Building for PG Courses, National Institute 123.60 Administrative Block, Open Air Theatre, Instructional Building, of Technology, Hostel, Guest House, Teacher Flats, Sports Complex, Residence Deemed and Auditorium Building at National Institute of Technology, University, Kurukshetra. Kurukshetra

16. Construction of Shopping Centre at Champhai, Mizoram MOUD&PA 118.80

17. Construction of 4 nos. 169 Men Barracks at Jamshedpur. Central Reserve 109.50 Police Force

18. Chimney and Chimney Elevator Package for Vindhyachal National Thermal 102.50 Super Thermal Power Project Stage-III (2x500 MW) Power Corpn.

19. Construction of Market for Urban Poor Un-Employed Youth & MOUD&PA 102.20 Women Vendors at Lakshmi Market Manipur.

20. Construction of Sports Authority of India, Sports 100.00 Sub-Centre at Hazaribagh Authority of India

DUES OUTSTANDING

The position in respect of realisation of outstanding dues from Iraq amounting to RS.700.14 million and Libya RS.814.38 million remain unchanged from the previous year. Necessary assistance at the Government and Diplomatic level was sought for realisation of these dues, but so far positive results have not been achieved.

As against the completed works of RS.6606.19 million during the year, major portion of dues have been realised and efforts are being made to ensure that atleast current dues do not run into arrears. However, outstanding dues in respect of domestic operations carried out in the past continues alarmingly high. The amount out~tanding is of the order of RS.2324.63 million (previous year Rs. 2213.07 million), mostly against the Government Departments and other Agencies. At Zonal Offices, for realisation of old outstanding dues, a separate Cell has been constituted. Progress of .realisation in various Zones is being monitored at regular intervals at the Functional Director level in the Corporate Office for appropriate action. Whenever it is considered necessary, assistance from the Government is also obtained.

CORPORATE VISION-2010

The Corporate Vision is as under:

To improve the USP of the Corporation which delivers high quality projects in time and within cost.

To improve the customer relationship and strive for customer satisfaction by proactive approach.

To improve the liquidity and bankability of the

Corporation by a four pronged approach:

i) Expansion of business in Project Management & Consultancy by capitalizing on IS0-9001 accreditation. Thus, further improving credibility of the Organisation as a techno professional body.

ii) Striving hard for developing real estate projects for fruitful commercial exploitation of available land so as to generate handsome profit, off-set overhead cost and accumulated losses.

iii) Selectively take works on tendered basis.

iv) Building a highly receptive. informative and professionally charaed Oraanisation by introducing modern project management concepts and exploiting development in information technology sector by introducing Web based monitorina and communication systems, LAN based information sharing systems, SAP based financial and personnel management

To improve* The rating of the Corporation both in terms of specified and implied needs of the customer by regular modernization, training, interactive session and lateral induction of ideas and thoughts.

To instill a commitment in the Organisation to make it more transparent, dynamic and result-oriented.

CORPORATE GOVERNANCE

Towards good governance practices, emphasis is being laid in the Corporation on facets of observing transparency, accountability and proper disclosure. Accordingly, appropriate changes have been brought in various formats devised for Management Information System. The Project In charges and other functionaries in the Corporation are required to comply with provisions of the works manual. Guidelines are also being issued by the Vigilance

Division for proper execution of works at project sites.

SIGNING OF MOU

A Memorandum of Understanding for the year 2004- 2005 has been executed between your Corporation and the Ministry of Urban Development. The MOU envisages accelerated target growth in gross profit by 11 %. The following targets have been laid down in the MOU:

Rs. in million

Turnover 5500.00

Business Development 14000.00

Gross Margin 280.00

Net Profit 55.00

Your Corporation is likely to achieve 'Excellent' rating for the financial year 2003-2004 based on MOU parameters.

ISO CERTIFICATION

NBCC obtained ISO 9001 Certification for its Project Management and Consultancy Divisions. The Corporate Mission enshrines building a high degree of customer confidence and providing of services conforming to ISO 9001.

TECHNOLOGY ABSORPTION

In the liberalised, globalised and competitive business scenario, there is a continuous need for employing sophisticated techniques and mechanised form of construction for timely, speedier and quality execution of projects. NBCC continues to adopt Trenchless Technology for laying of underground utility services; Slip-form Technology for construction of high rise structures like chimneys and cooling towers; UASB Technology for sewage treatment plants and incremental launching of girders for construction of bridges.

NBCC acquired adequate knowledge about the equipment and technology involved in Construction of Mass Housing Units during its association with an Earthquake Rehabilitation Project in Turkey where 3600 dwelling units were completed in a record time of eight months.

BUSINESS STRATEGIES

Towards customers satisfaction and timely execution of projects, following business strategies have been adopted'

1. Introduction of the concept of 'Cost to Completion' (CTC).

2. Computerised monitoring through LAN and Web based online monitoring system.

3. 'A', 'B') 'C' categorisation of projects and close monitoring of projects. depending upon their criticality.

4. Proactive approach and constant liaison with clients.

5. Funds Management for the present has been introduced at Zonal level and it is ultimately to be centralized at Corporate level for effective utilisation and better control of available financial resources at a given point of time with the Corporation. .

IT PLAN

Your Corporation is fully aware of the fact that authentic access to information has become a necessity in modern times which helps the organisation in taking quick decisions. Today, NBCC is equipped with office automation facilities both at the Corporate Office and Zonal Offices.

It has been decided at the Corporate Management level to adopt web based technology in its functions. Corporation started Project Monitoring functions through web in a few critical projects to begin with and now extended to all PMGSY works. In the second phase, PIMS application will be put on web so that the zonal offices could update personnel information in the centralised database.

ORGANISATIONAL CHANGES

To further ~treamline the functioning of the Corporation, five Regional Business Groups (RBG) have been constituted with emphasis on equitable distribution of workload. All their respective Head~ are headquartered in Delhi with the dual objective viz., (i) effective co-ordination with the Corporate Office and (ii) properly monitoring of progress of works at project sites of the Corporation. Under the re-organised set up, modified sub-delegation of powers have been given to various functionaries for smooth discharge of their functions and duties',

HUMAN RESOURCE DEVELOPEMNT

The H RD Division of the Corporation assist employees to upgrade their skills, knowledge and ability to take up higher responsibilities on continuous basis, This activity is undertaken by organising in-house lectures/training programmes and also nominates officials for external training programmes/workshops etc., organised by various training institutions/Govt. Organisations. The employees management relations continued to remain harmonious during the year under report. The morale of the employees was high and this contributed positively in the progress of the Corporation,

'MDC Journal', an in-house magazine covering articles on management, case studies, legal and allied topics is also being published,

Training Activity No. of man-days

a) In-house Executive training 137

b) External training. 389

c) Employees Technical Training 2880

Total 3406

A Unit Incharge Conclave was organised from 14th to 16th November, 2003 at SCOPE Convention Centre, SCOPE Complex for the first time in the history of the Corporation. All Unit Incharges and past Chief Executives of the Corporation besides other senior officers attended the conclave. Several contractors associated with the Corporation were also invited. This three day event happened to be a great success and it inculcated a spirit of togetherness for achieving the goal of the Corporation through a unified effort.

MANPOWER

At the close of the financial year 2003-2004, the manpower strength of the Corporation stood at 2700 employees (2692 regular and 08 NMR/WE employees). The category-wise position in respect of regular employees is indicated below:

has GROUP-A GROUP-B GROUP-C GROUP-D TOTAL

629 295 735 1041 2700

(18) (24) (21) (43) (106)

(The figure in brackets is in respect of female employees).

FOREIGN EXCHANGE EARNINGS AND OUTGO

Your Corporation earned Rs 27.53 million and incurred an expenditure of Rs. 21.38 million in foreign exchange as per details furnished in Item No. 32 D&E Notes. to the Accounts (Schedule 21 ) forming part of the Accounts.

CONSERVATION OF ENERGY

NBCC, engaged in service sector, has limited scope for energy conservation. Emphasis is being laid on employing techniques which result in conservation of energy, such as the use of solar energy devices in buildings. At work place, emphasis is more on installation of energy efficient lights and using natural light to a maximum extent. Sewage Treatment Plants executed by NBCC using UASB technology without any moving parts helps in conservation of electricity.

PROGRESSIVE USE OF HINDI

During the year 2003-2004, efforts continued in the Corporation towards progressive use of Hindi. The Official Language Implementation Committee(OLIC) quarterly meetings were held to review the progress of official language in Corporation. 'HINDI DIWAS" was celebrated on 15.9.2003 in place of 14.9.2003 (being holiday).

"Hindi Pakhwara" was organised from 6.9.2003 to 20.9.2003 and Hindi competitions were conducted in which employees and their family members took active part. Cash prizes were later on awarded to the winners. In House Journal "Bhawan Lochan" is being published in Hindi language. During the year under report, several inspections were conducted "~ by the Hindi Cell in Zones and various Divisions at the Corporate Office to oversee the extent of use of official language in day to day working.

RESERVATION OF SCHEDULED CASTES AND SCHEDULED TRIBESI OTHER BAKWARD CLASSES'

Directives issued by the Government of India from time to time for filling up of vacancies for SC/ST/ OBC/Ex- servicemen/Physically Handicapped have been followed in the Corporation.

Category-wise details in respect of SC/ST employees is given below :

Category of General SC % age of ST %age of Total no. employees SC ST of employees

Group-A 514 105 16.69% 10 1.6% 629

Group-B 215 69 23.38% 11 3.72% 295

Group-C 634 96 13.06% 5 0.68% 735

Group-D 887 149 14.38% 5 0.49% 1041

Grand Total 2250 419 31 2700

 
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