Mar 31, 2015
Dear Members,
The Directors are pleased to present the 20th Annual Report and the
Company's audited financial statement for the financial year ended
March 31, 2015.
FINANCIAL PERFORMANCE
The Company's financial performance, for the year ended March 31, 2015
is summarised below:
Year ended Year ended
S.
No Details 31.03.2015 31.03.2014
(Rs.) (Rs.)
1 Contract receipts - -
2 Sales - 162600
3 Other income 13437971 16846068
Total 13437971 17008668
4 Total expenditure 6965721 6970362
5 Interest & finance expenses - -
6 Depreciation 253122 319453
7 Profit before tax 6219128 9718853
8 Provision for tax
- Current year (1092930) (3060626)
- Deferred Tax (Asset) 19924 34551
9 Prior year depreciation adj. - -
10 Profit after tax 5146122 6692778
11 Add: Surplus from previous
year 195554838 188862060
12 Amount available for
appropriations 200700960 195554838
13 Transfer to General
Reserve Nil Nil
14 Proposed Dividend &
Dividend Tax Nil Nil
200700960 195554838
DIVIDEND AND TRANSFER TO RESERVES
The income earned by the Company during the financial year ended 31st
March 2015 comprises of financial income from mutual fund investments
and interest on loans given. The Company has not earned any profit from
operations since the development construction projects are under
implementation. In view of the above and also in order to conserve
resources for use for acquisition of land and for working capital, your
Directors are not recommending any dividend for the year ended 31st
March 2015 (previous year dividend paid is nil).
Your Directors have not transferred any amount to any reserves during
the year.
CREDIT RATING
Your Company has not issued any financial instruments requiring to be
rated by credit rating agencies during the year.
SUBSIDIARIES, JOINT VENTURES AND ASSOCIATE COMPANIES
Your Company does not have any subsidiary, joint venture or associate
companies.
DIRECTORS' RESPONSIBILITY STATEMENT
Your Directors state that:
i. in the preparation of the annual accounts for the year ended March
31, 2015, the applicable accounting standards read with requirements
set out under Schedule III to the Act, have been followed and there are
no material departures from the same;
ii. the Directors have selected such accounting policies and applied
them consistently and made judgments and estimates that are reasonable
and prudent so as to give a true and fair view of the state of affairs
of the Company as at March 31, 2015 and of the profit of the Company
for the year ended on that date;
iii. 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;
iv. the Directors have prepared the annual accounts on a 'going
concern' basis;
v. the Directors have laid down internal financial controls to be
followed by the Company and that such internal financial controls are
adequate and are operating effectively; and
vi. the Directors have devised proper systems to ensure compliance with
the provisions of all applicable laws and that such systems are
adequate and operating effectively.
CORPORATE GOVERNANCE
Your Company has complied all the material requirements of Corporate
Governance prescribed under Clause 49 of the Listing Agreement. A
report on Corporate Governance is annexed and it forms part of this
report.
CONTRACTS AND ARRANGEMENTS WITH RELATED PARTIES
During the year, the Company had not entered into any contract,
arrangement or transaction with related parties which could be
considered material in accordance with the policy of the Company on
materiality of related party transactions.
The Policy on materiality of related party transactions and dealing
with related party transactions as approved by the Board was put up on
the website of the Company at www.narendraproperties.com.
Your Directors draw attention of the members to Note 21 : Significant
Accounting Policies and Explanatory Statement - No. (3) (1) to the
financial statement which sets out related party disclosures.
RISK MANAGEMENT
During the year, your Directors have constituted a Risk Management
Committee which has been entrusted with the responsibility to assist
the Board in framing and overseeing risk management policy and its
periodical review, implementation and taking of pre-emptive corrective
actions as may be deemed necessary. Your Company has adequate risk
management infrastructure in place capable of addressing risks faced by
the company both internal and external.
INTERNAL FINANCIAL CONTROLS
The Company has in place adequate internal financial controls with
reference to financial statements. During the year, no reportable
material weakness has surfaced with regard to those internal controls
in place.
DIRECTORS AND KEY MANAGERIAL PERSONNEL
During the year under review members have approved the appointment of
Mr Chandrakant Udani and Mr Nishank Sakariya as Non-Executive,
Non-Independent Director liable for retirement by rotation. Members
have also approved the appointment of Mr S Ramalingam, Mr John K John,
Mr R Subrahmanian, Mr Babubhai P Patel and Mr K S Subramanian as
Independent Directors not liable for retirement by rotation. Your
Directors have, based on the recommendation made by the Nomination and
Remuneration Committee, appointed Mr Chandrakant Udani as the Wholetime
Director and Chief Financial Officer which was approved by the members
during the year. Your Directors have appointed Mrs Preethi Siddharth
Maher as Additional Director who will be holding office only up to the
ensuing Annual General meeting. The Company has received a special
notice along with requisite deposit, from a member proposing the
appointment of Mrs Preethi Siddharth Maher as a Director on the Board
of the Company liable for retirement by rotation.
Your Directors Mr Mahendra K Maher and Mr Narendra Sakariya retire by
rotation at the ensuing Annual General meeting and being eligible are
offering themselves for re-appointment.
The Company has received declarations from all the Independent
Directors of the Company confirming that they meet the criteria of
independence as prescribed both under the Companies Act, 2013 and
Clause 49 of the Listing Agreement with the Stock Exchange.
The Nomination & Remuneration Committee has submitted its
recommendation as regards the Policy for performance evaluation of
Independent Directors, Board, Committees and other individual Directors
which includes criteria for performance evaluation of the non-executive
directors and executive directors. The Board has accepted the
recommendation and it shall be implemented for performance evaluation
during the current financial year ended 31st March 2016.
A familiarization program was conducted for the Independent Directors
wherein the roles, rights, responsibilities of the Independent
Directors, the business model of the company and the industry related
developments was apprised and presented to them. The details of the
familiarization program conducted for Independent Directors, Policy for
selection of Directors and determining Directors independence,
Remuneration Policy for Directors, Key Managerial Personnel and other
employees are also put up on the website of the Company at
www.narendraproperties.com.
AUDITORS & AUDITORS' REPORT
Statutory Auditor
The report of the Statutory Auditors M/s Sanjay Bhandari & Co.,
Chartered Accountants, Chennai, is annexed to this report. The Auditors
Report does not contain any qualification, reservation or adverse
remarks.
The Statutory Auditors shall be holding office until the conclusion of
the ensuing Annual General Meeting and are eligible for re-appointment.
They have confirmed they are eligible for re-appointment and they are
not disqualified for re-appointment as Statutory Auditors of the
Company.
Secretarial Auditor
The Board has appointed Mr A M Gopikrishnan, Practicing Company
Secretary, to conduct Secretarial Audit for the financial year 2014-15.
The Secretarial Audit Report for the financial year ended March 31,
2015 is annexed to this report.
In response to the remarks made in the Secretarial Audit Report, your
Board wish to inform the members that the Company has initiated the
process to appoint a Company Secretary u/s 203 of the Companies Act,
2013. Even though the Company has been taking continuous efforts to
appoint a Company secretary to discharge its obligation under section
203 of the Act, the Company could not find suitable candidates willing
to join the company considering its nature and extent of operations and
remuneration policy.
Internal Auditor
The Board has appointed Mr R Mugunthan, Chartered Accountant, as
Internal Auditor, as required under section 138 of the Companies Act,
2013. The Board and the Audit Committee are reviewing and taking on
record the Internal Audit Report submitted periodically by the Internal
Auditor. The Internal Auditor has not reported any adverse findings
during the year.
DISCLOSURES
Corporate Social Responsibility
Your Company is not falling within the financial criteria laid down
under section 135(1) of the Companies Act, 2013, and as such is not
under obligation constitute Corporate Social Responsibility committee
and undertake CSR activities.
Audit committee
The Audit Committee comprises of four Independent Directors and one
Non-Independent Director and as such the composition requirements
prescribed under section 177 of the Companies Act, 2013 and the Listing
Agreement is satisfied. All the recommendations made by the Audit
Committee during the year have been accepted by the Board.
Vigil Mechanism
The Company has put in place a vigil mechanism in order to facilitate
Directors and Employees to report on genuine concerns. The Whistle
Blower policy adopted by the Company and the Vigil Mechanism as a part
of the said policy has been put up on the website of the Company at
www.narendraproperties.com.
Meetings of Board
During the year five meetings of the Board of Directors were held. The
dates on which the Board meetings were held and the attendance of the
Directors therein is furnished in the Corporate Governance Report.
Particulars of Loans given, Investments made, Guarantees given and
securities provided.
The particulars of Loans given, investments made and the purpose for
which the loan given is proposed to be utilised by the recipient is
furnished in Note 21 : Significant Accounting Policies and Explanatory
Statement - No. (3) (2) to the financial statements.
The Company has not given any guarantees and has not provided any
security during the year.
Conservation of energy, technology absorption, foreign exchange
earnings and outgo.
As the Company is basically a construction company, the Provisions of
Sec. 134 (3) (m) of the Companies Act, 2013, so far as the information
relating to conservation of energy and technology absorption is not
applicable to the Company. The Company has not earned any revenue in
foreign exchange and it has also not incurred any expenditure in
foreign currency during the year.
Extract of Annual Return
The extract of Annual Return as on 31st March 2015 in the prescribed
Form MGT9 is annexed to this report.
Particulars of Employees and related disclosures
In terms of the requirements of Section 197(12) of the Companies Act,
2013, read with Rules 5(2) and 5(3) of the Companies (Appointment and
Remuneration of Managerial Personnel) Rules, 2014, your Directors wish
to state that none of the employees are drawing remuneration in excess
of the limits set out in the said rules.
Disclosures pertaining to remuneration and other details as required
under Section 197(12) of the Act read with Rule 5(1) of the Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014 are
as follows:
Employees Stock Option Scheme
The Company has not formulated any Employees Stock Option scheme.
Disclosure under the Sexual Harassment of Women at Workplace
(Prevention, Prohibition and Redressal) Act, 2013.
The Company has in place Anti Sexual Harassment Policy in line with the
requirements of the Sexual Harassment of Women at Workplace
(Prevention, Prohibition and Redressal) Act, 2013. All employees
(permanent, contractual, temporary, trainees) are covered under this
policy. The Company has not received any complaints under the said Act
during the year.
General
Your Directors do not have anything to report or disclose on the
following items since there were no transaction relating to them during
the year:
i. No deposits were accepted attracting the provisions of section 73 -
76 of the Companies Act, 2013.
ii. The Company has not issued any equity shares during the year with
differential rights as to dividend, voting or otherwise.
iii. The Company has not issued any shares (including sweat equity
shares) to any of its employees during th year.
iv. The Company does not have any subsidiary, Joint venture or
associate companies and as such the Managing Director / Whole time
Directors receiving any remuneration from such companies does not
arise.
v. No significant or material orders were passed by the Regulators or
Courts or Tribunals which impact the going concern status and Company's
operations in future.
vi. There were no material changes and commitments affecting the
financial position of the company which have occurred between 31st
March 2015 and the date of this report.
vii. The Board has reviewed the system in place to monitor compliance
with all the applicable laws relating to Companies domain of operation
and it has not come across any material non-compliance with such laws
during the year.
ACKNOWLEDGEMENT
Your Directors take this opportunity to thank the various Governmental
authorities, the Company's Bankers Bank of Baroda, HDFC Bank Limited,
Anna Salai Branch, HDFC Bank Limited, Kilpauk Branch, Tamilnad
Mercantile Bank Limited and all the customers, suppliers and
contractors who have supported the efforts of the Company at every
critical stage.
Your Directors also wish to place on record the dedicated services
rendered by the employees of the Company at all levels.
By Order of the Board,
For and on behalf of the Board of Directors
PLACE : CHENNAI S RAMALINGAM
DATED: 10TH AUGUST 2015 CHAIRMAN
Mar 31, 2014
Dear Shareholder,
The Directors have pleasure in submitting the 19 Annual Report of your
Company together with the Audited Accounts for the year ended 31st
March 2014.
FINANCIAL RESULTS
The Audited Results for the year ended 31st March 2014 are given below
:
Year ended Year ended
S.No. Details 31.03.2014 31.03.2013
(Rs.) (Rs.)
1 Contract receipts - -
2 Sales 162600 Nil
3 Other income 16846068 19064360
Total 17008668 19064360
4 Total expenditure 6960577 7916042
5 Interest & finance expenses 9785 1046
6 Depreciation 322632 355420
7 Profit before tax 9715674 10791852
8 Provision for tax
- Current year (3060626) (3177291)
- Deferred Tax (Asset) 34551 17509
9 Prior year depreciation adj. 3179 5886
10 Profit after tax 6692778 7637956
11 Add: Surplus from previous year 188862060 181224104
12 Amount available for appropriations 195554838 188862060
13 Transfer to General Reserve Nil Nil
14 Proposed Dividend & Dividend Tax Nil Nil
195554838 188862060
DIVIDEND
In order to conserve resources for use for acquisition of land and for
working capital, your Directors are not recommending any dividend for
the year ended 31 March 2014 (previous year dividend paid is nil)
MANAGEMENT DISCUSSION AND ANALYSIS
A. Industry Structure and Developments
Your Company is a building construction company. It purchases and
develops large tracts of land into residential houses, complexes and
flats. It also undertakes construction of commercial complexes on a
selective basis. The operations of the Company are presently confined
to localities in and around Chennai and its suburbs.
B. Performance
Your Company reported a total income of Rs 170.09 lakhs during the year
ended 31st March 2014 as against Rs 190.64 lakhs during the previous
year. The profit after tax was Rs 66.93 lakhs for the year ended
31.3.2014 as against Rs 76.38 lakhs achieved during the previous year.
Your Company has not executed any development projects during the year
since approval is awaited for the projects under consideration.
Substantial part of total income has been earned towards interest and
dividend from mutual fund units invested out of the surplus funds
available with the Company pending deployment in its operations. In the
absence of buoyant market condition, your Company is exercising
abundant caution in launching development projects or investing in land
for future launch of development projects.
C. Segmentwise Performance
Your Company undertakes construction projects at Chennai and its
suburb. The activities of your Company falls under single segment
namely Construction of Buildings (Residential & Commercial).
Your Company is in the process of obtaining necessary approvals for
developing and constructing multi- storied residential apartments at
Woods road which is abutting Mount Road and very near to the famous
Express Avenue Mall. Your Company is also developing another property
in the suburb of Chennai for construction of commercial and / or
residential space.
Your Company owns landed properties at Sholinganallur, Chennai and at
Arcot Dist, Tamilnadu, wherein it will be launching large scale
construction projects for building residential or commercial complexes
at an opportune moment.
D. Concerns
The interest rates were at elevated levels throughout the year. This is
severely affecting the purchasing power of the flat buyers in deciding
to firm up their purchase decision. The inflationary tendencies
prevalent in the economy is increasing the cost of the raw materials
including land, steel and cement thereby affecting the profitability
and feasibility of construction projects. The economy was also affected
by the impact of volatility in the currency markets.
E. Outlook
A stable government with a clear majority of its own has been
established at the Centre. This has brought about remarkable changes
and improvement in the business confidence and sentiment. The macro
indicators of the economy are also showing positive improvements. It is
hoped that the GDP growth will pick up momentum in the years to come.
The construction sector and your company will be directly benefitted in
terms of increased buoyancy in demand for residential properties with
the pick up in the economic activity and GDP growth. Your company has
lined up plans for development and construction of residential
buildings and for consequent improvement in turnover for the next
couple of years.
F. Internal Control Systems
Your company has a proper and adequate system of internal controls to
ensure that all assets are safeguarded and protected against loss from
un-authorised use or disposition.
G. Human resources and industrial relations
Your company has well qualified and experienced technical, financial
and administrative staff to cater to its business requirements. The
relations with the employees of the company remained cordial throughout
the year.
None of the employees are in receipt of remuneration in excess of the
limits prescribed under Section 217 (2A) of the Companies Act, 1956.
CORPORATE GOVERNANCE
Your Company has materially complied with the requirements of Corporate
Governance Code as prescribed under the revised Clause 49 of the
Listing Agreement. A report on Corporate Governance is annexed and it
forms part of this report.
DIRECTORS
The Directors Mr Chandrakant Udani and Mr Nishank Sakariya will be
retiring by rotation at the ensuing Annual General Meeting and they
being eligible are offering themselves for reappointment.
In order to comply with the requirements of appointment of Independent
Directors, Mr S Ramalingam, Mr John John and Mr R Subrahmanian have
agreed to retire at the ensuing 19 Annual General Meeting.
The Board of Directors have appointed Mr. Babubhai P Patel and Mr. K.S.
Subramanian as Additional Directors on the Board of the Company in
order to broadbase the Board. As Additional Directors, they shall be
holding office only up to the ensuing Annual General Meeting.
In terms of section 149 and other applicable provisions of the
Companies Act, 2013, and Clause 49 of the Listing Agreement, Mr S
Ramalingam, Mr John K John, Mr R Subrahmanian, Mr Babubhai P Patel and
Mr K.S. Subramanian, being eligible and offering themselves for
appointment is proposed to be appointed as an Independent Director for
five (5) consecutive years for a term up to 31st March 2019. Notices
have been received from members proposing them as Independent
Directors.
In the opinion of the Board Mr S Ramalingam, Mr John K John, Mr R
Subrahmanian, Mr Babubhai P Patel and Mr K.S. Subramanian fulfils the
conditions specified in the Companies Act, 2013 and the rules made
thereunder for their appointments as Independent Directors of the
Company and are independent of the management. The Board considers that
their continued association would be of immense benefit to the Company
and it is desirable to continue to avail their services as Independent
Directors.
The Board of Directors of the Company have, based on the recommendation
made by the Remuneration Committee of Directors and in order to comply
with the requirements of section 203 of the Companies Act, 2013,
appointed the Director Mr Chandrakant Udani as Wholetime Director &
Chief Financial Officer of the Company for a period of five years from
1 September 2014 to 31 August 2019.
AUDITORS
M/s Sanjay Bhandari & Co, Chartered Accountants, Chennai will be
retiring at the ensuing Annual General Meeting and, being eligible, are
offering themselves for reappointment.
CONSERVATION OF ENERGY, ETC
As the Company is basically a construction company, the Provisions of
Sec. 217 (1) (e) of the Companies Act, 1956 so far as the information
relating to conservation of energy and technology absorption is not
applicable to the Company. The Company has not earned any revenue in
foreign exchange and it has also not incurred any expenditure in
foreign currency.
DIRECTORS'' RESPONSIBILITY STATEMENT
Your Directors'' state that :
(i) in the preparation of the annual accounts, the applicable
accounting standards had been followed along with proper explanation
relating to material departures, if any.
(ii) 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 the profit and loss
account of the company for that period.
(iii) the directors had taken proper and sufficient care 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.
(iv) the directors had prepared the annual accounts on a going concern
basis.
ACKNOWLEDGEMENT
Your Directors take this opportunity to thank the various Governmental
authorities, the Company''s Bankers Bank of Baroda, HDFC Bank Limited,
Tamilnad Mercantile Bank Limited and all the customers, suppliers and
contractors who have supported the efforts of the Company at every
critical stage.
Your Directors also wish to place on record the dedicated services
rendered by the employees of the Company at all levels.
By order of the Board
for and on behalf of the Board of Directors
Place: Chennai NARENDRA C MAHER BABUBHAI P PATEL
Dated: 13 August 2014 Managing Director Director
Mar 31, 2013
Dear Shareholder,
The Directors have pleasure in submitting the 18th Annual Report of
your Company together with the Audited Accounts for the year ended 31
st March 2013.
FINANCIAL RESULTS
The Audited Results for the year ended 31 st March 2013 are given
below:
Year ended Year ended
S.
No. Details 31.03.2013 31.03.2012
(Rs.) (Rs.)
1 Contract receipts
2 Sales Nil 41700
3 Other income 19064360 23749373
Total 19064360 23791073
4 Total expenditure 7916042 5946796
5 Interests finance expenses 1046 330
6 Depreciation 355420 330906
7 Profit before tax 10791852 17513042
8 Provision for tax
-Current year (3177291) (4699313)
- Deferred Tax (Asset) 17509 4588
9 Prior year depreciation adj. 5886 3050
10 Profit after tax 7637956 12821367
11 Add: Surplus from previous year 181224104 168402737
12 Amount available
for appropriations 188862060 181224104
13 Transfer to General Reserve Nil Nil
14 Proposed Dividend & Dividend Tax Nil Nil
188862060 181224104
DIVIDEND
In order to conserve resources for use for acquisition of land and for
working capital, your Directors are not recommending any dividend for
the year ended 31 st March 2013 (previous year dividend paid is nil)
None of the employees are in receipt of remuneration in excess of the
limits prescribed under Section 217 (2A) of the Companies Act, 1956.
CORPORATE GOVERNANCE
Your Company has materially complied with the requirements of Corporate
Governance Code as prescribed under the revised Clause 49 of the
Listing Agreement. A report on Corporate Governance is annexed and it
forms part of this report.
DIRECTORS
The Directors Mr S Ramalingam, Mr R Subrahmanian and Mr Narendra
Sakariya will be retiring by rotation at the ensuing Annual General
Meeting and they being eligible are offering themselves for
reappointment.
AUDITORS
M/s Sanjay Bhandari & Co, Chartered Accountants, Chennai will be
retiring at the ensuing Annual General Meeting and, being eligible, are
offering themselves for reappointment.
CONSERVATION OF ENERGY, ETC
As the Company is basically a construction company, the Provisions of
Sec. 217 (1)(e) of the Companies Act, 1956 so far as the information
relating to conservation of energy and technology absorption is not
applicable to the Company. The Company has not earned any revenue in
foreign exchange and it has also not incurred any expenditure in
foreign currency.
DIRECTORS'' RESPONSIBILITY STATEMENT
Your Directors'' state that:
(i) in the preparation of the annual accounts, the applicable
accounting standards had been followed along with proper explanation
relating to material departures, if any.
(ii) 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 attheendofthe financial year and the profit and loss
account of the company for that period.
(iii) the directors had taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the CompaniesAct, 1956, for safeguarding the assets ofthe
company and for preventing and detecting fraud and other
irregularities.
(iv) the directors had prepared the annual accounts on a going concern
basis.
ACKNOWLEDGEMENT
Your Directors take this opportunity to thank the various Governmental
authorities, the Company''s Bankers Bank of Baroda, HDFC Bank Limited,
Tamilnad Mercantile Bank Limited and all the customers, suppliers and
contractors who have supported the efforts ofthe Company at every
critical stage.
Your Directors also wish to place on record the dedicated services
rendered by the employees ofthe Company at all levels.
By order ofthe Board
for and on behalf of the
Board of Directors
Place : Chennai S. RAMALINGAM
Dated : 30th May 2013 Chairman
Mar 31, 2012
The Directors have pleasure in submitting the 17th Annual Report of
your Company together with the Audited Accounts for the year ended 31st
March 2012.
FINANCIAL RESULTS
The Audited Results for the year ended 31st March 2012 are given below:
S.No. DETAILS YEAR ENDED YEAR ENDED
31.03.2012 31.03.2011
(Rs.) (Rs.)
1 Contract receipts - -
2 Sales 41700 103158500
3.1 Income from operations 23720550 7841548
3.2 Other income 28823 64360
Total 23791073 111064408
4 Total expenditure 5946796 83929445
5 Interest & finance expenses 330 15049
6 Depreciation 330906 230997
7 Profit before tax 17513041 26888917
8 Provision for tax
- Current year (4699313) (5345478)
- Deferred Tax (Asset) 4588 26931
- Fringe Benefit Tax - -
9 Taxation adjustments of Previous Year - -
Prior year depreciation adj. 3050 90120
10 Profit after tax 12821366 21660490
11 Add: Surplus from previous year 168402737 146742247
12 Amount available for appropriations 181224103 168402737
13 Transfer to General Reserve Nil Nil
14 Proposed Dividend & Dividend Tax Nil Nil
181224103 168402737
DIVIDEND
In order to conserve resources for use for acquisition of land and for
working capital, your Directors are not recommending any dividend for
the year ended 31st March 2012 (previous year dividend paid is nil)
CORPORATE GOVERNANCE
Your Company is fully compliant with the requirements of Corporate
Governance Code as prescribed under the revised Clause 49 of the
Listing Agreement. A report on Corporate Governance is annexed and it
forms part of this report.
DIRECTORS
The Directors Mr Mahendra K Maher, Mr John K John and Mr Nishank
Sakariya will be retiring by rotation at the ensuing Annual General
Meeting and they being eligible are offering themselves for
reappointment.
AUDITORS
M/s Sanjay Bhandari & Co, Chartered Accountants, Chennai will be
retiring at the ensuing Annual General Meeting and, being eligible, are
offering themselves for reappointment.
CONSERVATION OF ENERGY, ETC
As the Company is basically a construction company, the Provisions of
Sec. 217 (1) (e) of the Companies Act, 1956 so far as the information
relating to conservation of energy and technology absorption is not
applicable to the Company. The Company has not earned any revenue in
foreign exchange and it has also not incurred any expenditure in
foreign currency.
Your Company believes in adopting and implementing best practices
relating to energy conservation at each of the building units which its
constructs. The buildings are designed for ensuring optimum use of
electrical power for cooling, heating and lighting of the interior and
exteriors. Your Company is taking active steps to adopt the energy
conservation measures prescribed under Energy Conservation Building
Code (ECBC) issued by Bureau of Energy Efficiency (BEE).
DIRECTORS' RESPONSIBILITY STATEMENT
Your Directors' state that :
(i) in the preparation of the annual accounts, the applicable
accounting standards had been followed along with proper explanation
relating to material departures, if any.
(ii) 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 the profit and loss
account of the company for that period.
(iii) the directors had taken proper and sufficient care 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.
(iv) the directors had prepared the annual accounts on a going concern
basis.
ACKNOWLEDGEMENT
Your Directors take this opportunity to thank the various Governmental
authorities, the Company's Bankers Bank of Baroda, HDFC Bank Limited,
Tamilnadu Mercantile Bank Limited and all the customers, suppliers and
contractors who have supported the efforts of the Company at every
critical stage.
Your Directors also wish to place on record the dedicated services
rendered by the employees of the Company at all levels.
By order of the Board
for and on behalf of the Board of Directors
S RAMALINGAM
Chairman
Place : Chennai
Dated : 31st May 2012
Mar 31, 2010
The Directors have pleasure in submitting the Fifteenth Annual Report
of your Company together with the Audited Accounts for the year ended
31st March 2010.
FINANCIAL RESULTS
The Audited Results for the year ended 31 st March 2010 are given
below:
Year ended Yearended
S.No. Details 31.03.2010 31.03.2009
(Rs.) (Rs.)
1 Contract receipts à Ã
2 Sales 8,25,27,549 14,43,81,278
3.1 Income from operations 1,65,17,597 7,46,508
3.2 Other income à Ã
Total 9,90,45,146 14,51,27,786
4 Total expenditure 7,62,52,576 13,18,31,754
5 Interests finance expenses 2,23,171 7,96,241
6 Depreciation 2,20,937 2,65,298
7 Profit before tax 2,23,48,462 1,22,34,493
8 Provision for tax
-Current year (37,39,471) (13,89,031)
- Deferred Tax (Asset) 6,657 17,405
-Fringe Benefit Tax - (48,763)
9 Taxation adjustments of
Previous Year (16,456) -
Excess provision
reverted back - -
10 Profitaftertax 1,85,99,192 1,08,14,104
11 Add: Surplus from previous year 12,81,43,055 11,73,28,951
12 Amount available for
appropriations 14,67,42,247 12,81,43,055
13 Transfer to General Reserve Nil Nil
14 Proposed Dividend & Dividend Tax Nil Nil
14,67,42,247 12,81,43,055
DIVIDEND
In order to conserve resources for use for acquisition of land and for
working capital, your Directors are not recommending any dividend for
the year ended 31 st March 2010 (previous year dividend paid is nil)
MANAGEMENT DISCUSSION AND ANAL YSIS
A. Industry Structure and Developments
Your Company is a building construction company. It purchases and
develops large tracts of land into residential houses, complexes and
flats. It also undertakes construction of commercial complexes on a
selective basis. The operations of the Company are presently confined
to localities in and around Chennai and its suburbs.
The building construction industry serves the requirements of
residential houses and apartments by consumers in need of such
apartments. Since it is a significant purchase, the prospect of the
industry is dependent upon the general economic conditions prevalent at
any point of time and availability disposable income of liquidity in
the hands of the buyers.
The economic situation has started stabilizing even during the first
half of the fiscal year 2009-10. The turbulent events affecting
external economy did not have much impact on the domestic economy. The
customers who have been postponing their home buying decisions have
also returned back to the market and were able to take committed
decision to purchase. All these developments had a positive impact on
the business of your company.
B. Performance
Your Company reported a total income of Rs 990.45 lakhs during the year
ended 31st March 2010 as against Rs 1451.28 lakhs during the previous
year. The profit after tax wasRs 185.99 lakhs forthe year ended
31.3.2010 as against Rs 108.14 lakhs achieved during the previous year.
The variation in the total income is due to the reason that the Company
follows the completion method of accounting forthe contracts.
C. Segmenrwise Performance
Your Company undertakes construction projects at Chennai and its
suburb. The activities of your Company falls under single segment
namely Construction of Buildings (Residential & Commercial).
The various projects which the company has executed and which are still
in progress is given herein below:
i. The Residential Project NPL Redmond Square at Sholinganallur have
been completed and sold out during the year except for a few flats
remaining in stock.
ii. The Company is owning lands at Kelambakkam and Sholinganallur for
promoting residential / commercial projects. The Company has already
obtained sanction for its project at Kelambakkam and it will be
launched depending upon the market conditions. The Company has also
obtained sanction for the one of the project at Sholinganallur which
will be launched in due course. These projects are in the vicinity of
the Chennai IT Corridor and they are expected to fetch good response
from the buyers.
D. Concerns
Land availability within the city limits remains a cause for concern.
Your Company has adopted the conscious policy of developing residential
projects at suburbs close to the IT Corridor to the south of Chennai.
Your Company was able to market the flats aided by positive sentiments.
The prices of essential raw materials like cement, steel, blue metal
etc., are still ruling high.
The demand for flats is also dependent to a large extent on the
interest rate applicable on housing loans. The interest rate was stable
throughout the year. However, any volatility in the interest rates will
have a direct impact on the demand forthe flats.
E. Outlook
In view of the large extent of unmet demand for residential units
amongst the large section of working class population, the demand for
residential units is bound to be always there. Your Company is
conscious of this and it has devised plans to capitalize on the
situation by constantly striving to balance its operations and costs so
that it could offer its products at a competitive price affordable to
the buyers.
F. Internal Control Systems
Your company has a proper and adequate system of internal controls to
ensure that all assets are safeguarded and protected against loss from
unauthorised use or disposition.
G. Human resources and industrial relations
Your company has well qualified and experienced technical, financial
and administrative staff to cater to its business requirements. The
relations with the employees of the company remained cordial throughout
the year.
None of the employees are in receipt of remuneration in excess of the
limits prescribed under Section 217 (2A) of the Companies Act, 1956.
CORPORATE GOVERNANCE
Your Company is fully compliant with the requirements of Corporate
Governance Code as prescribed under the revised Clause 49 of the
Listing Agreement. A report on Corporate Governance is annexed and it
forms part of this report.
DIRECTORS
The Director Mr Nishank Sakariya was appointed as a Director on the
Board of the Company u/s 255 of the Companies Act, 1956 liable for
retirement by rotation by the shareholders at the 14th AGM held during
the year in the place of the Director Mrs Meena Sakariya who retired at
the 14th AGM and did not opt for re-election..
The Directors Mr Mahendra K Maher, Mr John K John and Mr R Subrahmanian
will be retiring by rotation at the ensuing Annual General Meeting and
they being eligible are offering themselves for reappointment.
AUDITORS
M/s Sanjay Bhandari & Co, Chartered Accountants, Chennai will be
retiring at the ensuing Annual General Meeting and, being eligible, are
offering themselves for reappointment.
CONSERVATION OF ENERGY, ETC
As the Company is basically a construction company, the Provisions
ofSec. 217(1) (e) of the CompaniesAct, 1956 so far as the information
relating to conservation of energy and technology absorption is not
applicable to the Company. The Company has not earned any revenue in
foreign exchange and it has also not incurred any expenditure in
foreign currency.
Your Company believes in adopting and implementing best practices
relating to energy conservation at each of the building units which its
constructs. The buildings are designed for ensuring optimum use of
electrical power for cooling, heating and lighting of the interior and
exteriors. Your Company is taking active steps to adopt the energy
conservation measures prescribed under Energy Conservation Building
Code (ECBC) issued by Bureau of Energy Efficiency (BEE).
DIRECTORSRESPONSIBILITY STATEMENT
Your Directors state that:
(i) in the preparation of the annual accounts, the applicable
accounting standards had been followed along with proper explanation
relating to material departures, if any.
(ii) 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 the profit and loss
account of the company for that period.
(iii) the directors had taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the CompaniesAct, 1956, for safeguarding the assets of
the company and for preventing and detecting fraud and other
irregularities.
(iv) the directors had prepared the annual accounts on a going concern
basis.
ACKNOWLEDGEMENT
Your Directors take this opportunity to thank the various Governmental
authorities, the Companys Bankers Bank of Baroda, HDFC Bank Limited,
Tamilnadu Mercantile Bank Limited and all the customers, suppliers and
contractors who have supported the efforts of the Company at every
critical stage.
Your Directors also wish to place on record the dedicated services
rendered by the employees of the Company at all levels.
By order of the Board
for and on behalf of the Board of Directors
NARENDRA C. MAHER
Managing Director
Place : Chennai MAHENDRA K. MAHER
Dated : 28.05.2010 Director
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