Mar 31, 2010
We have pleasure in presenting the 18th Annual Report and the Audited Statements of Accounts for the financial year ended March 31, 2010.
FINANCIAL RESULTS: (Rs. In Lakhs)
Particulars 2009-2010 2008-2009
Gross Total Income from Operations 10098.37 4762.47
Profit before Depreciation and Taxes 808.34 384.17
Depreciation 105.96 22.24
Profit Before Tax 702.37 361.93
Provision for Tax 238.67 124.22
Net Profit 463.70 237.71
Proposed Dividend 64.56 32.28
Provision for Dividend Tax 10.97 5.49
Balance Carry forward to Balance Sheet 388.18 199.94
During the year under review, there was a marked improvement in the performance of the Company by achieving a gross income of Rs. 100.98 Crores which represents an increase of 112% over the previous year and a profit after taxes is at 4.64 Crores which represents an increase of 95% over the previous year.
The Board of Directors has recommended a dividend at the rate of 10% (Re.0.20 per share) on the paid up capital of Rs.6,45,59,000/- consisting of 3,22,79,500 equity shares of Rs.2/- each for the financial year ended March 31, 2010, which if approved at the forthcoming Annual General Meeting, will be paid to (i) all those Equity shareholders whose name appear in the register of members of the Company at the close of business hours on September 27, 2010 after considering all physical share certificates lodged for transfer, and (ii) those whose names appear as beneficial owners as per the information furnished by the NSDL and the CDSL as on September 27, 2010.
Mr. S. Subba Rao and Mr. P. Koteswara Rao retire by rotation and are eligible for re- appointment. Further Mr. M. Narasimha Rao was appointed as Executive Director of the Company and Mr. PWRRLN Prasad was re-appointed as Managing Director of the Company with effect from August 14, 2010.
M/s. P S Nagaraju & Co, Chartered Accountants, Statutory Auditors of the Company appointed in the previous Annual General Meeting hold office till the conclusion of the ensuing Annual General Meeting and are eligible for re-appointment. The Company has received from P S Nagaraju & Co. a consent letter to the effect that their appointment, if made, would be within the prescribed limits under Section 224(1 B) of the Companies Act, 1956.
DIRECTORS RESPONSIBILITY STATEMENT:
In pursuance of Section 217(2AA) of the Companies Amendment Act, 2000 your directors confirm
i) That the directors in the preparation of the annual accounts, the applicable accounting standards have been followed along with proper explanations relating to material departures.
ii) That the directors had selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the company at the end of the financial year and of the profit of company for that period.
iii) That the directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safe guarding the assets of the company and for preventing and detecting fraud and other irregularities.
iv) That the directors had prepared the annual accounts on the going concern basis.
PARTICULARS OF EMPLOYEES:
No employee was in receipt of remuneration for the financial year 2009-10 exceeding the limits prescribed under section 217(2A) of the Companies Act, 1956 and the rules framed there under, as amended to date.
Your company has not accepted any deposits falling under Section 58A of the Companies Act, 1956 read with the Companies (Acceptance of Deposits) Rules, 1975 during the year.
Information in accordance with the provisions of Section 217 (1) (e) of the Companies Act, 1956, read with Rule 2 of the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules, 1988, regarding conservation of energy, technology absorption and foreign exchange earnings and outgo:
We firmly believe that technology is the genesis of innovative business practices, which in turn enable the organization to carry out business effectively and efficiently. Even though the real estate development and infrastructure industry is labour intensive, we believe that there is an increasing need to mechanize the processes involved in order to minimize costs and increase efficiency. We intend to make investments in innovative techniques for this regard.
Energy: The Company is in the business of property development and infrastructure sector does not require large quantities of energy. However, wherever possible energy saving efforts are made.
Foreign Exchange Earnings & Outgo:
Foreign Exchange Earnings : Nil
Foreign Exchange Outgo : Nil
A separate section on Corporate Governance and a certificate from the statutory auditors of the Company regarding compliance of the conditions of corporate governance as stipulated in Clause 49 of the Listing Agreement entered into with the Stock Exchanges form a part of this Annual Report.
MANAGEMENT DISCUSSION AND ANALYSIS:
A separate section on Management Discussion and Analysis as stipulated under Clause 49 of the Listing Agreement entered into with the Stock Exchanges forms a part of this Annual Report.
Your Directors express their grateful appreciation for the assistance and co-operation received from the banks, government authorities, customers, vendors and shareholders during the said financial year. Your Directors would also like to once again place on record their appreciation to the employees at all levels, who through their dedication, co-operation, support and smart work have enabled the Company to move towards achieving its Corporate Objectives.
BY ORDER OF THE BOARD
Place : Hyderabad PVVRRLN. PRASAD
Date : 14-08-2010 CHAIRMAN