Mar 31, 2018
The Directors are pleased to submit the 24thAnnual Report of your Company together with the Audited Financial Statements (both Standalone and Consolidated) for the Financial Year (FY) ended 31st March, 2018 and report of the Statutory Auditors thereon. Consolidated performance of the Company and its subsidiaries has been referred to wherever required.
FINANCIAL RESULTS:
Certain key aspects of your Companyâs performance (on Standalone & Consolidated basis) during the financial year ended 31st March, 2018, as compared to the previous financial year are summarized below:
(Amount in Rs. Lakhs except share data)
Particulars |
Year ended 31.03.2018 |
Year ended 31.03.2017 |
||
Standalone |
Consolidated |
Standalone |
Consolidated |
|
Total Income |
4114.44 |
4590.41 |
5674.03 |
7317.98 |
Total Expenditure |
6163.38 |
6676.46 |
7593.81 |
9546.30 |
Interest |
1855.86 |
1861.82 |
1591.7 |
1592.25 |
Depreciation |
490.37 |
507.27 |
557.17 |
574.70 |
Profit/(Loss) before Prior period Items |
(2048.94) |
*(2325.02) |
(1919.78) |
**(2193.30) |
Prior period adjustments/ Exceptional items |
179.90 |
179.90 |
||
Profit before Tax |
(1869.04) |
(2145.12) |
(1919.78) |
(2193.30) |
Current Tax |
- |
0.14 |
- |
0.18 |
Prior period tax |
(93.73) |
(93.73) |
- |
- |
Deferred Tax Change |
172.27 |
169.79 |
208.01 |
203.98 |
Total Tax expenses |
78.54 |
76.20 |
208.01 |
204.16 |
Profit/(Loss) after Tax/Profit for the year |
(1947.58) |
(2,221.32) |
(2,127.79) |
(2,397.46) |
Other Comprehensive Income net of tax |
(0.70) |
(0.70) |
(22.57) |
(22.57) |
Total comprehensive Income |
(1948.28) |
(2222.02) |
(2150.36) |
(2,420.03) |
EPS (Basic and as well as Diluted) |
(2.79) |
(3.18) |
(3.07) |
(3.47) |
*&** Profit before Non-Controlling Interests/Share Profit/(Loss) of associates.
REVIEW OF OPERATIONS:
During the FY 2017-18, your company reported a consolidated turnover of Rs.4121.37 lakhs against Rs.6858.86 lakhs for the previous year and a loss of Rs.2222.02 lakhs as against Rs. 2420.03 lakhs for the previous year.
The standalone turnover of your company for the year 2017-18 stood at Rs.3662.16 lakhs as against Rs.5224.63 lakhs. Total loss for the FY 2017-18 is Rs.1948.28 lakhs as against Rs.2150.36 lakhs during 2016-17.
DIVIDEND:
In view of the loss incurred by the Company for the year under review, your Board of Directors do not recommend any dividend.
SUBSIDIARIES:
The Company has two subsidiaries viz; Prajay Holdings Private Limited (PHPL) and Prajay Retail Properties Private Limited (PRPPL) and one step down subsidiary viz; Prajay Developers Private Limited (PDPL) and two Associates viz: Prajay Properties Private Limited (PPPL) and Genesis Capital Private Limited as on 31st March, 2018. There has been no material change in the nature of the business of the subsidiaries. The consolidated financial statements of the Company and its subsidiaries, prepared in accordance with applicable Indian Accounting Standards (Ind AS), as specified under Section 133 of the Companies Act, 2013 (The Act) read with Rules made thereunder, forms part of this Annual Report.
Pursuant to the provisions of Section 129(3) of the Companies Act, 2013 a statement containing salient features of the financial statements of the Companyâs subsidiaries in Form AOC-1 is attached to the standalone financial statements of the Company.
SHARE CAPITAL:
There is no change in the capital structure of the company during the year under review.
TRANSFER TO GENERAL RESERVES
No amount has been transferred to General Reserves during the year under review.
DIRECTORS & KEY MANAGERIAL PERSONNEL:
During the year under review the following are the changes in office of Directors and Key Managerial Personnel of the company:
a) Mr. Raja Gopal Reddy Mekapati, Non-Executive Director vacated the office w.e.f 14th September, 2017, pursuant to the applicable provisions of the Companies, Act, 2013, However the Board of Directors took note of the same in their meeting held on 20th September, 2017.
b) Mr. Dantapalli Vijaysen Reddy resigned from the office of the Director w.e.f 14th November, 2017.
c) Mr. Raghavender Reddy Marpadaga, was appointed as an Additional Director w.e.f. 14th November, 2017. He was appointed as a Non-Executive Director under Independent Category.
d) Mr. Dantapalli Rohit Reddy was appointed as an Additional Director, w.e.f. 26th October, 2017. He was further appointed as Managing Director and CEO of the Company w.e.f. 15th November, 2017. He was appointed as Chairperson of the Company and also designated as Key Managerial Personnel w.e.f. 14th February, 2018.
Pursuant to the provisions Section 161(1) of the Companies Act, 2013, Mr. Dantapalli Rohit Reddy and Mr. Raghavender Reddy Marpadaga, will hold the office till the date of this AGM. As recommended by the Nomination and Remuneration Committee, the Board proposed and recommend the regularization of Mr. Raghavender Reddy Marpadaga and Mr. Dantapalli Rohit Reddy as Directors. The Board further recommend the appointment of Mr. Dantapalli Rohit Reddy, Managing Director for the approval of members in this AGM.
In accordance with Section 152 of Companies Act, 2013, Mr. Ravi Kumar Kutikalapudi, Director of the Company, retires by rotation in this ensuing AGM to be held on 29th September, 2018, and being eligible offered himself for reappointment. The Board recommends his re-appointment.
Mr. Neelakantam Nagesshwara Rao, Non-Executive Independent Directors resigned from the office of Director w.e.f 6th August, 2018 and Mr. Vijay Kishore Mishra, Non-Executive Independent Director resigned from the office of Director w.e.f. 10th August, 2018. Ms. Deevi Madhavi Latha, Company Secretary and Compliance Officer resigned from the office w.e.f 3rd August, 2018.
Designations of Mr. Sumit Sen and Mr. Ravi Kumar Kutikalapudi were changed from Whole-time Director to Nonexecutive Director w.e.f 29th August, 2018.
DIRECTORS'' RESPONSIBILITY STATEMENT
Pursuant to the requirement under Section 134(5) of the Companies Act, with respect to Directors'' Responsibility Statement, it is hereby confirmed that:
a. In the preparation of the annual accounts, the applicable accounting standards have been followed along with proper explanation relating to material departures;
b. Such accounting policies as mentioned in the notes to the financial statements have been selected and applied consistently and judgments and estimates that are reasonable and prudent made so as to give a true and fair view ofthe state of affairs of the Company at the end of the financial year 2017-18 and of the profit or loss of the Company for that period;
c. Proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;
d. The annual accounts for the year 2017-18 have been prepared on a going concern basis.
e. Those proper internal financial controls were in place and that the financial controls were adequate and were operating effectively.
f. The systems to ensure compliance with the provisions of all applicable laws were in place and were adequate and operating effectively
BOARD EVALUATION:
The Board of Directors has carried out an annual evaluation of its own performance, Board Committees and Individual Directors pursuant to the provisions of the Companies Act, 2013, and the corporate governance requirements as prescribed by Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements), Regulations 2015 (âSEBI Listing Regulationsâ).
The manner in which the evaluation has been carried out has been explained in the Corporate Governance Report.
BOARD DIVERSITY:
The Policy on Board Diversity of the Company devised by the Nomination and Remuneration Committee and approved by the Board is disseminated under the weblink of the Company at www.prajayengineers.com/investors
CODE OF CONDUCT AND DECLARATION ON CODE OF CONDUCT BY MD & CEO:
Your Company has laid down a Code of Conduct for all Board members, Senior Management and Independent Directors of the company in line with the provisions of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 and Companies Act, 2013. The said Code of Conduct has been posted on the website of the Company weblink www.prajayengineers.com/investors. Declaration of Code of Conduct is enclosed to this Board Report as an Annexure to Corporate Governance Report.
AUDIT COMMITTEE
The Composition of the Audit Committee is provided in the Corporate Governance Report forming part of this report. All the recommendations made by the Audit Committee were accepted by the Board.
ESTABLISHMENT OF VIGIL MECHANISM:
The Company has adopted a whistle blower policy establishing a vigil mechanism to provide a formal mechanism to the directors and employees to report concern about unethical behavior, actual or suspected fraud or violation of code of conduct and ethics.
It also provides for adequate safeguards against the victimization of employees who avail of the mechanism and provides direct access to the chairperson of the audit committee in exceptional cases. The whistle blower policy aims for conducting the affairs in a fair and transparent manner by adopting higher standards of professionalism, honesty, integrity and ethical behavior. All permanent employees of the company are covered under the whistle blower policy.
It is affirmed that no personnel of the company has been denied access to the audit committee. The policy of vigil mechanism is available on the company''s weblink www.prajayengineers.com/investors.
NOMINATION & REMUNERATION COMMITTEE:
Yours company has a Nomination and Remuneration Committee and further details as to its composition, meetings and director''s attendance thereat are set out in the corporate governance report forming part of the Directors (Board) Report.
POLICY ON DIRECTORS'' APPOINTMENT AND REMUNERATION AND OTHER DETAILS
The Salient Features of the Company''s policy on directors'' appointment and remuneration and other matters including performance evaluation are provided in the Corporate Governance Report which forms part of this board report. Nomination and Remuneration Policy available under weblink www.prajayengineers.com/investors
MEETINGS OF THE BOARD OF DIRECTORS DURING THE FINANCIAL YEAR
Eight (8) meetings of the board of directors were held during the year. For details of the meetings of the board, please refer to the corporate governance report, which forms part of the Directors (Board) Report.
MEETING OF INDEPENDENT DIRECTORS:
The details of the separate meeting of Independent Directors of the Company held during the year is reported in the Corporate Governance Report.
FAMILIARIZATION PROGRAMME FOR INDEPENDENT DIRECTORS:
All Independent Directors (IDs) inducted into the Board are provided with an orientation on company structure and board constitution and procedures, matters reserved for the Board, and our major risks and risk management strategy. The company has familiarized the independent directors with the company, their roles, rights, responsibilities in the company, nature of the industry in which the company operates, etc., through various Interactions and familiarization programmers. The said familiarization programs are disclosed on the company''s website www.prajayengineers. com/investors.
Details of the familiarization program of the independent directors are available on the website of the Company www.prajayengineers.com/investors.
PERFORMANCE EVALUATION CRITERIA FOR INDEPENDENT DIRECTORS
The performance evaluation criteria for Independent Directors is determined by the Nomination and Remuneration committee. An indicative list of factors that may be evaluated include participation and contribution by a director, commitment, effective deployment of knowledge and expertise, effective management of relationship with stakeholders, integrity and maintenance of confidentiality and independence of behavior and judgments etc.
DECLARATIONS BY INDEPENDENT DIRECTORS:
All Independent Directors have submitted declarations that they meet the criteria of independence as laid down under Section 149(6) of the Act and Securities and Exchange Board of India.
AUDITORS:
Pursuant to the provisions of Section 139(2) of the Companies Act, 2013 and all other applicable provisions and rules made there under, M/s. Karumanchi & Associates, Chartered Accounts, Hyderabad, has been appointed by the Shareholders of the Company in the 23rd Annual General Meeting held on 27thSeptember, 2017, for a period of 4 years i.e. from the conclusion of 23rd AGM to till the conclusion of 27th AGM subject to ratification at every subsequent Annual General Meeting.
Your board recommend for the ratification of Statutory Auditors from the conclusion of ensuing Annual General Meeting till the conclusion of 27th AGM for the approval of shareholders.
REPLIES TO THE AUDITORS REMARKS/COMMENTS
Point No.8 of Annexure A to the Independent Auditor''s Report.
Company is putting serious continuous efforts to re-pay the defaulted amounts to the banks through One Time Settlements.
INTERNAL AUDITOR:
The company has appointed Mr. M. Shanker, B.Com. and MBA-Finance, Employee of the company has been appointed as Internal Auditor of the company.
COST AUDIT:
Maintenance of cost records is not specified by the Central Government under sub-section (1) of section 148 of the Companies Act, 2013, is in respect of the activities carried on by the company.
INTERNAL FINANCIAL CONTROL SYSTEMS AND THEIR ADEQUACY:
The Company has adequate internal control systems and procedures designed to effectively control its operations. The internal control systems are designed to ensure that the financial and other records are reliable for the preparation of financial statements and for maintaining assets. The Company has well designed Standard Operating Procedures considering the essential components of internal control as stated in the Guidance Note on Audit of Internal Controls over Financial Reporting issued by the Institute of Chartered Accountants of India. Internal Auditor conduct audit covering a wide range of operational matters and ensure compliance with specified standards. Planned periodic reviews are carried out by Internal Audit. The findings of Internal Audit are reviewed by the top management and by the Audit Committee of the Board of Directors. Based on the deliberations with Statutory Auditors to ascertain their views on the financial statements including the Financial Reporting System and Compliance to Accounting Policies and Procedures, the Audit Committee was satisfied with the adequacy and effectiveness of the Internal Controls and Systems followed by the company.
SECRETARIAL AUDITOR:
Pursuant to the provisions of Section 204(1) of the Companies Act, 2013 and The Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, your Company has appointed Mr. M. Ramana Reddy, Practicing Company Secretary as Secretarial Auditor, to undertake the Secretarial Audit of the Company for the Financial Year 2017-18. The Secretarial Audit Report for the year ended 31st March, 2018 is annexed herewith to this Report as Annexure-VII.
POLICY ON PREVENTION, PROHIBITION AND REDRESAL OF SEXUAL HARASSMENT AT WORK PLACE
Your Company has in place the Anti-Sexual Harassment Policy in line with the requirements of The Sexual Harassment of Women at the Workplace (Prevention, Prohibition & Redressed) Act, 2013, Internal Complaints Committee (ICC) has been set up to redress complaints received regarding sexual harassment. Your company has been complied with the provisions relating to the constitution of ICC. All employees (permanent, contractual, temporary, trainees) are covered under this policy. During the financial year under review, the Company has not received any compliant on sexual harassment.
POLICY ON MATERIAL SUBSIDIARIES
Policy for determining material subsidiaries of the Company is available on the website of the Company www. prajayengineers.com/investors
MANAGEMNET DISCUSSION & ANALYSIS
The Management Discussion and Analysis Report as required under Regulation 34 & Schedule V of Securities and Exchange board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 and enclosed as Annexure- IV to this Directors (Board) Report.
CORPORATE GOVERNANCE
Report on Corporate Governance enclosed as Annexure-V to this board report. A certificate from the Practicing Company Secretary regarding compliance with the corporate governance norms stipulated also annexed to the corporate governance report.
EXTRACT OF ANNUAL RETURN:
The extract of the Annual Return in Form MGT-9 as provided under Section 92(3) of the Companies Act, 2013 is given as Annexure-VI to this Report and also available at www.prjayengineers.com under weblink www.prajayengineers. com/investors
PUBLIC DEPOSITS:
During the Financial Year 2017-18, your Company has not accepted any deposit that falls within the meaning of Sections 73 and 74 of the Companies Act, 2013 read together with the Companies (Acceptance of Deposits) Rules, 2014. However, an amount of Rs. 1,38,617/- (including interest) remains unclaimed by the previous depositors.
PARTICULARS OF LOANS, GUARANTEES, SECURITIES OR INVESTMENTS UNDER SECTION 186.
The details of loans given, investments made, guarantees given and securities provided during the year under Sec.186 of the Act are available under Note 8&9 of the notes to the standalone financial statements.
PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES:
Information on transactions with related parties pursuant to Section 134(3)(h) of the Act read with rule 8(2)of the Companies (Accounts) Rules, 2014 and Pursuant to SEBI (LODR) 215 are given in Form AOC-2 and forms part of this Directors (Board) Report as Annexure-I and under Note 9&10to financial accounts.
SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS OR TRIBUNALS:
During the latter part of the year under review, in the matter of in a petition filed by a shareholder against the company, the National Company Law Tribunal (NCLT) imposed Status Quo on impugned properties stating that not to alienate the properties. However, the same has been vacated/relaxed subsequently National Company Law Appellate Tribunal (NCLAT). Except as stated above, there are no significant material orders passed by the regulators/courts/tribunals which would impact the going concern status of your Company and its future operations. The company has given necessary disclosures to the stock exchanges in this regard, for the information of the shareholders.
MATERIAL CHANGES AND COMMITMENTS AFFECTING THE FINANCIAL POSITION OF THE COMPANY:
Due to the Status Quo imposed NCLT as stated above, during the latter part of the year your company was not able to sell the properties developed by it, and accordingly, unable to realise the investments made on the same. Except this there are no material changes and commitments in the business operations of the company for the financial year ended 31st March, 2018 and to the date of signing of the Director''s Report.
CHANGE IN THE NATURE OF BUSINESS
There is no change in the nature of business of the Company
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO:
The particulars in respect of conservation of energy, technology absorption and foreign exchange earnings and outgo, as required under Section 134(3)(m) of the Companies Act, 2013 read with the Companies (Accounts) Rules, 2014 is appended as Annexure-II to this Directors (Board) Report.
RISK MANAGEMENT:
The Companyâs principal financial liabilities comprise loans and borrowings, trade and other payables. The main purpose of these financial liabilities is to finance and support Companyâs operations. The Companyâs principal financial assets include inventory, trade and other receivables, cash and cash equivalents and land advances and refundable deposits that derive directly from its operations.
The Company is mainly exposed to market risk, credit risk and liquidity risk. The company has a risk management policy and framework to identify, evaluate business risks and opportunities. This framework seeks to create transparency, minimize adverse impact on the business objectives, and enhance the Company''s competitive advantage. This framework defines the risk management approach across the enterprise at various levels including documentation and reporting.
CORPORATE SOCIAL RESPONSIBILITY:
The company has constituted a Corporate Social Responsibility Committee and details of the Committee have been provided under Corporate Governance Report.
INDUSTRIAL RELATIONS:
Yours directors are happy to report that the industrial relations have been cordial at all levels throughout the year. Your directors record their appreciation for all the efforts, support and co-operation of all employees being extended from time to time.
LISTING AT STOCK EXCHANGES:
The equity shares of your Company are listed on NSE and BSE (the stock exchanges). The listing fee for the year 2017-18 has been paid to both the stock exchanges.
CEO AND CFO CERTIFICATION AS PER REG. 17(8) OF SEBI (LODR) REGULATIONS, 2015:
As required by Reg. 17(8) of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, the CEO and CFO certification on the Financial Statements and the Internal Control Systems for financial reporting has been obtained from Mr. Dantapalli Rohit Reddy - Managing Director and Chief Executive Officer and Mr. Bhaskara Rao Patnana - Chief Financial Officer of the company and the same was reviewed by the Board of Directors and is annexed to the Corporate Governance Report.
HUMAN RESOURCES:
Your Company recognizes that âHuman Resourceâ is its main asset. Your Company HR policy aims at enhancing individual capabilities for future readiness, driving greater employee engagement and strengthening employee relations further.
Considering the present market conditions, your Company has down sized its human resources and retaining only that are directly relevant to its growth at this stage. To attract and retain people, your Company provides a judicious combination of attractive career, personal growth and a lucrative compensation structure. Your Company places great importance on nurturing and retaining the best skills in the industry.
INFORMATION TO BE FURNISHED UNDER COMPANIES (APPOINTMENT AND REMUNERATION OF MANAGERIAL PERSONNEL) RULES, 2014.
Not applicable as no employee of the Company is in receipt of such remunerations specified under above stated rule. However the other information as required to be furnished under Rule 5(1) and 5(2) of above stated rules is provided under Annexure- III
ACKNOWLEDGEMENTS:
Your Directors thank the various Departments of Central/ State Government, SEBI, Stock Exchanges, RBI, MCA and other Regulatory Bodies for the continued help and co-operation extended by them. The Directors also gratefully acknowledge all stakeholders of the Company viz. Shareholders, Customers, Bankers, Suppliers, Joint Venture Partners and other business associates for the excellent support received from them. The Directors place on record their sincere appreciation to all employees of the Company for their unstinted commitment and continued contribution and confidence reposed in the management.
For and on behalf of the board
Prajay Engineers Syndicate Limited
Sd/-
Dantapalli Rohit Reddy
Place: Hyderabad Chairman
Date : 29.08.2018 DIN: 07560450
Mar 31, 2016
DIRECTORSâ REPORT
To the Members,
The Directors submit 22nd Annual Report of Prajay Engineers Syndicate Limited (the âCompanyâ or âPESLâ) along with the audited financial statements for the financial year (FY) ended March 31, 2016. Consolidated performance of the Company and its subsidiaries has been referred to wherever required.
FINANCIAL RESULTS:
Certain key aspects of your Companyâs performance (on standalone & consolidated basis) during the financial year ended March 31, 2016, as compared to the previous financial year are summarized below:
('' in Lakhs)
Particulars |
Year ended 31 |
st March 2016 |
Year ended 31 |
st March 2015 |
Standalone |
Consolidated |
Standalone |
Consolidated |
|
Gross Turnover |
8029.64 |
10022.26 |
5812.10 |
11150.04 |
Profit before interest and Depreciation |
(162.48) |
(617.26) |
(1016.09) |
(1089.05) |
Depreciation |
616.12 |
641.12 |
608.49 |
637.87 |
Profit before Tax |
(2063.79) |
(2554.59) |
(2368.15) |
(2482.67) |
Provision for taxation |
(279.84) |
(275.99) |
7.97 |
15.42 |
Profit / (Loss) after tax |
(2343.63) |
(2769.28) |
(2360.18) |
(2469.62) |
Transfer to General Reserve |
... |
... |
--- |
--- |
Dividend |
... |
... |
--- |
--- |
EPS Basic |
(3.35) |
(3.96) |
(3.37) |
(3.53) |
Diluted |
(3.35) |
(3.96) |
(3.37) |
(3.53) |
Review of Operations:
In FYâ16, your Company reported a consolidated Turnover of 10022.26 Lakhs, which is marginally less than that of previous year Rs, 11150.04 Lakhs and the loss after tax is increased by 12% from Rs, 2469.62 Lakhs during 2014-15 to Rs, 2769.28 Lakhs.
However, the stand alone gross turnover reported an increase of 38% from Rs, 5812 Lakhs in 2014-15 to Rs, 8029 Lakhs. The overall loss is declined marginally from (Rs, 2360 Lakhs) during 2014-15 to (Rs, 2343) Lakhs during 2015-16.
The real estate sector continued to face a challenging environment due to lackluster demand scenario, various policy hurdles, delay in approval cycle, continued high borrowing costs both for the industry and the customer.
Future Outlook:
With the real estate markets and customer sentiments being closely correlated to the overall growth in the Indian economy, the real estate sector is expected to improve with reduction in the cost of borrowing, overall economic growth and lowered inflationary pressures.
Some challenges like excess supply in the market and price correction would remain in the short term. However, the Company is committed to exceed the expectations of all its stakeholders. In order to achieve the same, the Company shall continue to build scale through value accretive new deals and capital efficient business models such as sourcing land under the Joint development models and the development management models.
The Companyâs business development strategy shall be aligned towards less capital intensive Projects, Sharing and Development Management models. Additionally, the Company will focus on sourcing land with large capital requirements in our target geographies under the Residential Co-investment platform with the Company acting as the development manager for these projects and sharing in the equity projects as well. On the operational front, timeliness of launches and execution shall continue to be a strong focus area for the Company. The Company will continue to improve its project execution capabilities through continuously improving internal processes and internal capability building. Optimizing return on capital and developing crisis and risk management capabilities will continue to remain the Companyâs focus area.
Extract of Annual Return:
The extract of the Annual Return in Form MGT-9 as provided under Section 92(3) of the Act is given as Annexure 1 to this Report.
Board Meetings:
During the year 2015-16, 09 (Nine) meetings were held by the Board of Directors including one separate meeting of independent directors which was held on 18.3.2016.
The details of board meetings and the attendance of Directors are provided in the Corporate Governance Report. Directorsâ Responsibility Statement:
Pursuant to section 134(5) of the Companies Act, 2013, the board of directors, to the best of their knowledge and ability, hereby confirm that:
(i) in the preparation of the annual accounts, the applicable accounting standards have been followed and there are no material departures.
(ii) they have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at 31st March, 2016 and the profit and loss of the Company for that period;
(iii) they have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;
(iv) they have prepared the annual accounts on a going concern basis;
(v) they have laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and were operating effectively; and
(vi) they have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.
Declarations by Independent Directors:
All Independent Directors have submitted declarations that they meet the criteria of independence as laid down under Section 149(6) of the Act and Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Nomination & Remuneration Committee:
Yours company has a Nomination and Remuneration Committee and further details are set out in the corporate governance report forming part of the Directorsâ Report.
The Companyâs policy on directorsâ appointment and remuneration and other matters provided in section 178(3) of the Act has been disclosed in the corporate governance report, which forms part of this report.
Auditors:
Mr. S.V. Rangan, Chartered Accountant (M. No. 022037) has resigned to his position w.e.f. 13.5.2016. In order to complete the Audit for 2015-16, as per the provisions of Sec. 139(8) of the Companies Act, 2013, the board has appointed M/s. Meenavalli & Associates, Chartered Accountants (Firm Regn. No. 012208S) as statutory auditors to fill the casual vacancy caused by the resignation of S.V. Rangan.
The appointment of M/s. Meenavalli & Associates as statutory auditors is subject to the approval of the shareholders. Your board seeks approval of the appointment of statutory auditors for the year 2015-16 at the item no. 3 set out in the Notice of Annual General Meeting.
The company also proposes to appoint M/s. Meenavalli & Associates, Chartered Accountants, (Firm Regn. No. 012208S) as statutory auditors of the company from the conclusion of this Annual General Meeting until the conclusion of 26th Annual General Meeting of the Company, subject to ratification by shareholders at every subsequent annual general meeting of the company.
The written consent and a Certificate to the effect that their appointment, if made, would be in accordance with the conditions as prescribed under the Act, has been received by the company.
Your board recommends appointment of statutory auditors for 4 years (from 22nd AGM to 26th AGM ) as set out in item no. 4 in the Notice of Annual General Meeting.
Auditorsâ Report:
i) Emphasis of matter on Note 37(a) of the standalone Financial Statements - Due to economic slowdown and recession in realty sector, the realizations from customers are slow. Due to large volume of customers, the company could obtain confirmations from majority of them and is in the process of obtaining from the remaining customers.
ii) Emphasis of matter on Note 37(b) of the standalone Financial Statements - Long term Loans and advances given to Landlords/ developers towards certain projects and short term loans and advances to suppliers are in the in the ordinary course of business due to long term involvement in such projects. Due to long gestational nature of the projects coupled with recession and low demand in realty sector, the settlements are taking longer period.
iii) Emphasis of matter on Note 24 and 25 of the standalone Financial Statements - the explanation given in the note is self-explanatory.
Particulars of loans, guarantees or securities or investments under sec. 186:
The details of loans given, investments made, guarantees given and securities provided under Section 186 of the Companies Act have been provided in the notes to the standalone financial statements.
Particulars of Contracts or Arrangements with Related Parties:
All contracts or arrangements with related parties, entered into or modified during the financial year, were on armâs length basis and in the ordinary course of business. All such contracts or arrangements have been approved by the Audit Committee.
During the year, the Company had certain material transactions referred to in Section 188 of the Companies Act, 2013 with related parties. Accordingly, the disclosure of Related Party Transactions as required under Section 134(3) of the Companies Act in Form AOC-2 is applicable and given as Annexure 2 to this Report.
Attention of Members is drawn to the disclosure of transactions with related parties set out in Notes to Accounts -Note No. 34B forming part of the Standalone financial statements.
The company has formulated a policy on related party transactions in line with Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The policy intends to ensure that proper reporting; approval and disclosure processes are in place for all transactions between the Company and related parties. Pursuant to Reg. 23 of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, the company is seeking the approval of shareholders of the company for the existing and future related party transactions at this Annual General Meeting by way of a Special Resolution.
Dividend:
Considering the market conditions, companyâs performance during the year under review, reduced liquidity position in the market as a whole and with a view to conserve the resources for the smooth operations of the company in future, your Directors have not recommended any dividend for the year under review.
Material changes and commitments affecting the financial position of the company:
There were no material changes and commitments affecting the financial position of the Company which have occurred between March 31, 2016 and the date of this Report.
Conservation of Energy, Technology absorption and Foreign Exchange Earnings and Outgo:
The particulars in respect of conservation of energy, technology absorption and foreign exchange earnings and outgo, as required under Section 134(3)(m) of the Companies Act, 2013 read with the Companies (Accounts) Rules, 2014 is appended as Annexure 3 to this Report.
Risk management:
The company has a risk management policy and framework to identify, evaluate business risks and opportunities. This framework seeks to create transparency, minimize adverse impact on the business objectives, and enhance the companyâs competitive advantage. This framework defines the risk management approach across the enterprise at various levels including documentation and reporting and further details are set out in the Corporate Governance Report forming part of Directorsâ Report.
Corporate Social Responsibility:
In compliance with section 135 of the Companies Act, 2013 read with the Companies (Corporate Social Responsibility) Rules, 2013 the company has constituted a Corporate Social Responsibility Committee and the details forms part of the Corporate Governance Report.
Board Evaluation:
The board of directors has carried out an annual evaluation of its own performance, board committees and individual directors pursuant to the provisions of the Act and the corporate governance requirements as prescribed by Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements), Regulations 2015 (âSEBI Listing Regulationsâ).
The performance of the board was evaluated by the board after seeking inputs from all the directors on the basis of the criteria such as the board composition and structure, effectiveness of board processes, information and functioning, etc.
The performance of the committees was evaluated by the board after seeking inputs from the committee members on the basis of the criteria such as the composition of committees, effectiveness of committee meetings, etc.
The board and the nomination and remuneration committee reviewed the performance of the individual directors on the basis of the criteria such as the contribution of the individual director to the board and committee meetings like preparedness on the issues to be discussed, meaningful and constructive contribution and inputs in meetings, etc. In addition, the chairman was also evaluated on the key aspects of his role.
Performance Evaluation Criteria for Independent Directors:
The performance evaluation criteria for independent directors are determined by the Nomination and Remuneration committee. An indicative list of factors that may be evaluated include participation and contribution by a director, commitment, effective deployment of knowledge and expertise, effective management of relationship with stakeholders, integrity and maintenance of confidentiality and independence of behavior and judgments.
Fixed Deposits:
The Company has not accepted any deposits from public in terms of Sec.73 of the Companies Act, 2013 and as such, no amount on account of principal or interest on public deposits was outstanding as on the date of the balance sheet. However, an amount of '' 1,79,839/- (including interest) is still unclaimed by the old depositors.
Share Capital:
There is no change in the capital structure of the company during the year under review.
Directors & Key Management Personnel:
Pursuant to the provisions of section 149 of the Act, Mr. Vijay Kishore Mishra, Mr. N. Nageshwara Rao, Mr. S.K. Rudresh were appointed as independent directors at the annual general meeting of the Company held on September
30, 2014. They have submitted a declaration that each of them meets the criteria of independence as provided in section 149(6) of the Act and there has been no change in the circumstances which may affect their status as independent director during the year.
Pursuant to the provisions of Sec. 152 of the Companies Act, 2013 and Article 86 of the Articles of Association of the Company, Mr. D. Vijay Sen Reddy (DIN-00291185) is liable to retire by rotation at the ensuing Annual General Meeting and being eligible offers himself for re-appointment. Your Board of Directors recommend for his re-appointment.
Pursuant to the provisions of Sec. 149, 161 of the Companies Act, 2013, rules made there under and Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 and based on the recommendations of the Nomination and Remuneration Committee, Board has appointed Mrs. K. Padmaja (DIN-07543055) as Additional Director (in the capacity of Independent Director) on 14.06.2016 and Mrs. K. Padmaja will be holding the office of Director till the date of Annual General Meeting of the Company. The Company has received notice under Section 160(1) of the Act from a member proposing her candidature for appointment as Director. Mrs. Padmaja possesses the required skills, more than 25 years of experience and knowledge in the fields of Accounts and Taxation. Your Board of Directors recommend for her appointment.
Pursuant to the provisions of Section 203 of the Act, the key managerial personnel of the Company are: Mr. D. Vijay Sen Reddy, Chief Executive Officer and Managing Director, Mr. P. Bhaskara Rao, Chief Financial Officer and Mrs. D. Madhavi Latha, Company Secretary. There has been no change in the key managerial personnel during the year.
Brief profile of the aforesaid Directors, the nature of their expertise in specific functional areas and the number of Companies in which they hold directorship and membership / chairmanship of committees of the Board, as stipulated under Reg. 26 of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 is attached as Annexure 4 to this Report and also provided at an appropriate place in Report on Corporate Governance.
Changes in the Board of Directors:
There were no changes in the Directors during the year under review. However, Mrs. V. Padma, Independent Woman Director (DIN-07145633) has resigned to her Directorship in the company w.e.f. 1.7.2016 and the company places on record itsâ appreciation for the services rendered by her during her tenure.
Corporate Governance Report:
The Corporate Governance Report, as stipulated under Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 forms part of this Report. The requisite certificate from the Practicing Company Secretary, Mr. P. Konda Reddy confirming compliance with the conditions of corporate governance as stipulated under the aforesaid regulations is attached to the Corporate Governance Report.
Transfer to the Investor Education & Protection Fund (IEPF):
During the year under review, dividend declared for 2007-08 and unclaimed for more than 7 years amounting to 5,28,725/- (Rupees Five Lakhs Twenty Eight thousand Seven Hundred and Twenty Five only) has been transferred to the Investor Education and Protection Fund.
Industrial relations:
Your Directors are happy to report that the industrial relations have been cordial at all levels throughout the year. Your Directors record their appreciation for all the efforts, support and co-operation of all employees extended from time to time.
Policy to prevent Sexual Harassment at the workplace:
The Company is committed to create and maintain an atmosphere in which employees can work together, without fear of sexual harassment, exploitation or intimidation. Every employee is made aware that the company is strongly opposed to sexual harassment and that such behavior is prohibited both by law and by the Company. To redress complaints of sexual harassment, an Internal Complaints Committee (ICC) has been formed under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 and the rules made there under. Ms. D. Nayanika Reddy is the Chairperson of the Internal Complaints Committee.
During the year ended March 31, 2016, the ICC received NIL complaints pertaining to sexual harassment.
Listing at Stock Exchanges:
The equity shares of your Company are listed on NSE and BSE (the stock exchanges). The listing fees for the year 2016-17 have been paid to the stock exchanges.
CEO. CFO certification as per Reg. 17(8) of SEBI (LODR) Regulations, 2015:
As required by Reg. 17(8) of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, the CEO and CFO certification on the Financial Statements and the Internal Control Systems for financial reporting has been obtained from Mr. D. Vijay Sen Reddy - Managing Director & Chief Executive Officer and Mr. P. Bhaskara Rao - Chief Financial Officer and the same was reviewed by the Board of Directors and is annexed to the Corporate Governance Report.
Internal Auditor:
The company has appointed Mr. M. Shanker, B.Com. and MBA-Finance, as Internal Auditor of the company and takes his suggestions and recommendations to improve and strengthen the internal control systems. His scope of work includes review of operational efficiency, effectiveness of systems & processes, compliances and assessing the internal control strengths in all areas.
The Audit Committee reviews adequacy and effectiveness of the Companyâs internal control environment and monitors the implementation of audit recommendations including those relating to strengthening of the Companyâs risk management policies and systems.
Internal financial control systems and their adequacy:
The company has been maintaining all its financial records in TALLY system all these days but in order to facilitate the requirements, increasing needs and compliance requirements, decided to shift to FOCUS platform.
The company has appointed internal auditors to check the internal controls and also check whether the workflow of the organization is in accordance with the approved policies of the company. In every quarter, during approval of financial statements, internal auditors will present to the audit committee, the internal audit report and management comments on the internal audit observations; and
The board of directors have adopted various policies like Related Party Transactions Policy, Whistle Blower Policy, Material Subsidiaries Policy, Corporate Social Responsibility Policy,Risk Management Policy, Dissemination of Material Events Policy, Documents Preservation Policy, Code of Conduct and Ethical policy and such other procedures for ensuring the orderly and efficient conduct of its business for safeguarding of its assets, the accuracy and completeness of the accounting records and the timely preparation of reliable financial information.
Audit Committee:
The Composition of the Audit Committee is provided in the Corporate Governance Report forming part of this report. All the recommendations made by the Audit Committee were accepted by the Board.
Secretarial Auditor:
The Board has appointed Mr. P. Konda Reddy, Practicing Company Secretary, to conduct Secretarial Audit for the FY 2016-17. The Secretarial Audit Report for the financial year ended 31st March, 2016 is an Annexure 5 to this Report.
Management Discussion & Analysis Report:
The Management Discussion and Analysis Report as required under Regulation 34 & Schedule V of Securities and Exchange board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 forms part of this Report.
Subsidiary Companies & Consolidated Financial Statements:
The Company has 3 subsidiaries (1 step down subsidiary) and 2 Associates as on March 31, 2016. There has been no material change in the nature of the business of the subsidiaries. The consolidated financial statements of the Company and its subsidiaries, prepared in accordance with applicable accounting standards, issued by the Institute of Chartered Accountants of India, forms part of this Annual Report.
Pursuant to provisions of section 129(3) of the Act, a statement containing salient features of the financial statements of the Companyâs subsidiaries in Form AOC-1 is attached to the financial statements of the Company.
Further, pursuant to the provisions of section 136 of the Act, the financial statements of the Company, consolidated financial statements along with relevant documents and separate audited accounts in respect of subsidiaries, are available on the website of the Company.
In terms of Section 136 of the Companies Act, 2013 (âthe Actâ), financial statements of the subsidiary companies are not required to be sent to the members of the Company.
The Company shall provide a copy of the annual accounts of its subsidiary companies to the members of the Company on their request. The annual accounts of its subsidiary companies will also be kept open for inspection at the registered office of the Company during business hours.
Significant and material orders passed by the Regulators or Courts or Tribunals:
There were no significant material orders passed by the regulators/courts/tribunals which would impact the going concern status of your Company and its future operations.
Establishment of Vigil Mechanism:
The Company has adopted a whistle blower policy establishing a vigil mechanism to provide a formal mechanism to the directors and employees to report concern about unethical behavior, actual or suspected fraud or violation of code of conduct and ethics.
It also provides for adequate safeguards against the victimization of employees who avail of the mechanism and provides direct access to the chairperson of the audit committee in exceptional cases. It is affirmed that no personnel of the company has been denied access to the audit committee. The policy of vigil mechanism is available on the companyâs website.
The vigil blower policy aims for conducting the affairs in a fair and transparent manner by adopting higher standards of professionalism, honesty, integrity and ethical behavior. All permanent employees of the company are covered under the whistle blower policy.
Particulars of Employees:
The percentage of increase in remuneration of each Director, Chief Financial Officer, and Company Secretary during the financial year 2015-16, ratio of the remuneration of each director to the median remuneration of the employees of the company for the financial year 2015-16 and the comparison of remuneration of each KMP against the performance of the company are as under:
Sl. No. |
Name of the director/KMP and designation |
Remuneration of director/ KMP for financial year 2015.16 |
% increase in remuneration in the financial year 2015.16 |
Ratio of remuneration of each director/ to median remuneration of employees |
Comparison of the remuneration of the KMP against the performance of the company |
1. |
Mr. D. Vijay Sen Reddy -Managing Director |
42,00,000 |
75% |
35.00:1 |
The remuneration of the Directors & KMPs is well within the industry limits and in tandem with the performance of the company |
2. |
Mr. K. Ravi Kumar - Whole Time Director |
18,00,000 |
Nil |
15.00:1 |
|
3. |
Mr. Sumit Sen- Whole Time Director |
14,40,000 |
Nil |
12.00:1 |
|
4. |
Mr. P. Bhaskara Rao -CFO |
11,22,000 |
7.5% |
9.35:1 |
|
5. |
Ms. D. Madhavi Latha -CS |
6,36,000 |
Nil |
5.30:1 |
During the period under review, no employee of the company is employed throughout the year and in receipt of '' 60 Lakhs or more, or employed for part of the year and in receipt of '' 5 laks or more a month, under Rule 5(2) of Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014.
Human Resources:
Your Company recognizes that âHuman Resourceâ is its main asset. Your Company HR policy aims at enhancing individual capabilities for future readiness, driving greater employee engagement and strengthening employee relations further.
Considering the present market conditions, your Company has downsized its human resources and retaining only that are directly relevant to its growth at this stage. To attract and retain people, your Company provides a judicious combination of attractive career, personal growth and a lucrative compensation structure. Your Company places great importance on nurturing and retaining the best skills in the industry.
Code of Conduct and Declaration by MD & CEO:
Your Company has laid down a Code of Conduct for all Board members, Senior Management and Independent Directors of the company in line with the provisions of Securities and Exchange board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 and Schedule V to Companies Act, 2013. The Code of Conduct has been posted on the website of the Company.
Acknowledgements:
Your Directors would like to express their sincere appreciation for the assistance and co-operation received from the vendors and stakeholders including financial institutions, banks, Central and State Government authorities, customers, joint venture partners and other business associates, who have extended their valuable and sustained support and encouragement during the year under review. It will be the Companyâs Endeavour to build and nurture these strong links with its stakeholders.
Your Directors wish to place on record their sincere appreciation to all the employees for their dedication and commitment. The hard work and unstinting efforts of the employees have enabled the Company to sustain and further consolidate its position in the industry.
On behalf of the Board of Directors of
Prajay Engineers Syndicate Limited
Sd/-
Place : Hyderabad D. Vijay Sen Reddy
Date : 14th July, 2016 Chairman & Managing Director
Mar 31, 2015
Dear Members,
The Directors have pleasure in presenting the Twenty First Directors'
Report of your Company along with the Audited Financial Statements for
the financial year ended March 31,2015.
FINANCIAL RESULTS
Certain key aspects of your Company's performance during the financial
year ended March 31, 2015, as compared to the previous financial year
are summarized below:
(Rs. in lacs)
Particulars Year ended 31st
March 2015
Standalone Consolidated
Gross Turnover 5812.10 11150.04
Profit before interest and
Depreciation (1016.09) (1089.05)
Depreciation 608.49 637.87
Profit before Tax (2368.15) (2482.67)
Provision for taxation (7.97) 15.42
Profit / (Loss) after tax (2360.18) (2469.62)
Transfer to General Reserve - -
Dividend - -
EPS
Basic (3.37) (3.53)
Diluted (3.37) (3.53)
Particulars Year ended 31st
March 2014
Standalone Consolidated
Gross Turnover 8747.78 7267.17
Profit before interest and
Depreciation (317.44) (1218.33)
Depreciation 347.07 358.10
Profit before Tax (797.92) (1756.58)
Provision for taxation (595.01) (576.85)
Profit / (Loss) after tax (202.91) (1216.29)
Transfer to General Reserve - -
Dividend - -
EPS
Basic (0.30) (1.74)
Diluted (0.30) (1.74)
Review of Operations:
In FY'15, your Company reported consolidated revenues of 111.50 crore,
an increase of 53% from 72.67 crores in FY'14. However, EBIDTA stood at
Rs. (12.53) crore, a decrease of 1% from Rs. (12.64) crore in the
previous year. Net profit after tax, minority interest and prior period
items was at Rs. (24.70) crores, a decline of 103 % from Rs. (12.16)
crores. The EPS for FY'15 stood at (3.53) as compared to (1.74) for
FY'14.
Due to lackluster demand scenario, continued high borrowing costs and
volatile market conditions, your company could achieve a turnover of
Rs. 58.12 crores only against Rs. 87.47 crores for the previous year
(on standalone basis), a decline of 33.56%. The net loss after tax is
Rs. (23.60) crores against a loss of Rs. (2.02) crores for the previous
year. The increase in net loss is mainly due to increase in finance and
depreciation components.
However, your Company's Balance Sheet as at 31st March, 2015 reflects a
healthy position with a net worth of Rs. 636.39 crores. Net debt was
Rs. 203.45 crores as on 31st March, 2015. The debt to equity ratio was
at 0.32.
Your Company's development business primarily focuses on the
development and sale of residential real estate which include houses,
villas and apartments of varying sizes and integrated townships, with a
focus on the mid income, high end and luxury residential developments.
Future Outlook
Your Company continues to implement its strategy to concentrate on its
core business & geographies and to develop a right product mix well
suited for the market.
Although FY2014-15 was a difficult year for the real estate sector, the
long-term potential for the sector remains intact and it continues to
be an important catalyst to the nation's overall economic growth.
Hyderabad's superior infrastructure, affordability and cosmopolitan
ethos still make Hyderabad the choice of many home buyers. The Govt. of
Telangana is aiming to rebuild brand 'Hyderabad' by concentrating on
the information technology sector. Among the companies geared up for
expanding their operations in and around Hyderabad are tech major such
as Amazon, Google, Facebook, Microsoft, Cognizant and TATA Consultancy
Services (TCS).
Yours company expects demand from the mid income residential segment to
remain strong as we believe there is significant demand in this
category across the country and state as well. Increasing disposable
incomes, rapid urbanization and strong demographics are some of the
trends favoring the mid-income residential market.
Dividend
Considering the market conditions, company's performance during the
year under review, reduced liquidity position in the market as a whole
and with a view to conserve the resources for the smooth operations of
the company in future, your Directors have not recommended any dividend
for the year under review.
Fixed Deposits
The Company has not accepted / renewed any public deposits during the
year under review. The company has repaid all the deposits before
31.3.2015 but however an amount of Rs. 1,79,839/- (including interest)
is still unclaimed by the depositors.
The company, if necessary, will start accepting deposits after
complying with the provisions of Sec. 73 & 74 of Companies Act, 2013
and Companies (Acceptance of Deposits) rules, 2014.
Share Capital
There is no change in the capital structure of the company during the
year under review.
Directors & Key Management Personnel
Board of Directors, in compliance with Sec. 149, 161 of the Companies
Act, 2013 read with Clause 49 of the Listing Agreement and on the
recommendations of the Nomination and Remuneration Committee, appointed
Mrs. V. Padma (DIN-07145633) as Additional Director (in the capacity of
Independent Director) on 31.3.2015.
Mrs. V. Padma will be holding the office of Director till the date of
ensuing Annual General Meeting of the Company. The Company has received
notice under Section 160(1) of the Act from a member proposing her
candidature for appointment as Director. Mrs. V. Padma possess the
required skills, experience and knowledge in the fields of management,
administration, business strategy.
Pursuant to the provisions of Sec. 152 of the Companies Act, 2013 and
Article 86 of the Articles of Association of the Company, Mr. Sumit Sen
(DIN-01028417) is liable to retire by rotation at the ensuing Annual
General Meeting and being eligible offers himself for re-appointment.
Further the term of Mr. Sumit Sen as Whole Time Director expired on
31.1.2015. The Board at its meeting held on 28.1.2015, subject to the
approval of shareholders, re-appointed him as Whole Time Director for a
period of 2 years, effective from 1.2.2015 on the recommendations of
the Nomination and Remuneration Committee. Your Board of Directors
recommend for his re-appointment.
The term of Mr. D. Vijay Sen Reddy, Managing Director, expired on
13.2.2015.The Board of Directors, on the recommendations of the
Nomination and Remuneration Committee, re-appointed Mr. D. Vijay Sen
Reddy (DIN-00291185) as Managing Director of the company at the board
meeting on 28.1.2015, subject to the approval of shareholders, for a
period of 2 years effective from 1.2.2015. Your Board of Directors
recommend for his re-appointment.
Brief profile of the aforesaid Directors, is provided seperately in the
Report on Corporate Governance.
Mr. P. Bhaskara Rao is the Group Chief Financial Officer and Mrs.
Madhavi Latha is the Company Secretary of the Company.
Changes in Directors
Mr. D. Chakradhar Reddy, Independent Director has resigned to his
office during the year under review.
Declarations by Independent Director:
All Independent Directors have submitted declarations that they meet
the criteria of independence as laid down under Section 149(6) of the
Act and Clause 49 of the Listing Agreement.
Board Meetings:
During the year 2014-15, 09 (Nine) meetings were held by the Board of
Directors including the separate meeting of independent directors which
was held on 31.3.2015.
The details of board meetings and the attendance of Directors at such
meetings are provided in the Corporate Governance Report.
Audit Committee
The Composition of the Audit Committee is provided in the Corporate
Governance Report and forms part of this report. All the
recommendations made by the Audit Committee were accepted by the Board.
Corporate Governance Report
The Corporate Governance Report, as stipulated under Clause 49 of the
Listing Agreement forms part of this Report. The requisite certificate
from the Practicing Company Secretary, Mr. P. Konda Reddy confirming
compliance with the conditions of corporate governance as stipulated
under the aforesaid clause is attached to Corporate Governance Report.
Transfer to the Investor Education & Protection Fund (IEPF)
During the year under review, dividend unclaimed for more than 7 years
amounting to 3,94,159/- (Rupees Three Lacs Ninety four thousand One
Hundred and Fifty Nine only) pertaining to the financial year 2006-07,
was transferred to the Investor Education and Protection Fund.
Industrial relations
Yours directors are happy to report that the industrial relations have
been cordial at all levels throughout the year. Your directors record
their appreciation for all the efforts, support and co-operation of all
employees being extended from time to time.
Policy to prevent Sexual Harassment at the work-place
The Company is committed to creating and maintaining an atmosphere in
which employees can work together, without fear of sexual harassment,
exploitation or intimidation. Every employee is made aware that the
company is strongly opposed to sexual harassment and that such behavior
is prohibited both by law and by the Company. To redress complaints of
sexual harassment, an Internal Complaints Committee has been formed
under the Sexual Harassment of Women at Workplace (Prevention,
Prohibition and Redressal) Act, 2013 and the rules made there under.
Ms. D. Nayanika Reddy is the Chairperson of the Internal Complaints
Committee.
During the year ended March 31,2015, the ICC received nil complaints
pertaining to sexual harassment.
Listing at Stock Exchanges
The equity shares of your Company are listed on NSE and BSE (the stock
exchanges). The listing fees for the year 2015-16 have been paid to the
stock exchanges.
CEO & CFO certification as per Cl. 49 of the Listing Agreement
As required by Clause 49 of the Listing Agreement, the CEO and CFO
certification on the Financial Statements and the Internal Control
Systems for financial reporting has been obtained from Mr. D. Vijay Sen
Reddy - Managing Director & Chief Executive Officer and Mr. P. Bhaskara
Rao - Chief Financial Officer and the same was reviewed by the Board of
Directors and is annexed to the Corporate Governance Report.
Internal Audit & Controls
The company has appointed Mr. M. Shanker, B.Com. and MBA-Finance, as
Internal Auditor of the company and takes his suggestions and
recommendations to improve and strengthen the internal control systems.
His scope of work includes review of operational efficiency,
effectiveness of systems & processes, compliances and assessing the
internal control strengths in all areas.
The Audit Committee reviews adequacy and effectiveness of the Company's
internal control environment and monitors the implementation of audit
recommendations including those relating to strengthening of the
Company's risk management policies and systems.
Management Discussion & Analysis Report
The Management Discussion and Analysis Report as required under Clause
49 of the Listing Agreement with the stock exchanges forms part of this
Report.
Subsidiary Companies & Consolidated Financial Statements
As on 31st March, 2015, the Company has 3 subsidiary companies in terms
of the Act. A separate section containing a report on performance and
financial position of each of subsidiaries, associates and joint
ventures in Form AOC-1, is included in the consolidated financial
statements of the Company.
The Company shall provide a copy of the annual accounts of its
subsidiary companies to the members of the Company on their request.
The annual accounts of its subsidiary companies will also be kept open
for inspection at the registered office of the Company during business
hours.
The consolidated financial statements of the Company and its
subsidiaries, prepared in accordance with applicable accounting
standards, issued by the Institute of Chartered Accountants of India
and forms part of this Annual Report. In terms of Section 136 of the
Companies Act, 2013 ('the Act'), financial statements of the subsidiary
companies are not required to be sent to the members of the Company.
Significant and material orders passed by the Regulators or Courts or
Tribunals:
There are no significant material orders passed by the
regulators/courts/tribunals which would impact the going concern status
of your Company and its future operations.
Statutory Auditor & his Report:
Auditor:
Mr. S.V. Rangan, Chartered Accountant (M. No. 022037) was appointed as
the Statutory Auditor of the Company to hold office from the conclusion
of 20th Annual General Meeting till the conclusion of the 23rd Annual
General Meeting to be held in 2017, subject to ratification by the
shareholders at every Annual General Meeting. Accordingly, your Board
recommends for the ratification of appointment of Mr. S.V. Rangan as
the Statutory Auditor of the Company for the financial year 2015-2016.
Certificate from the Auditor has been received to the effect that his
re-appointment, if made, would be within the limits prescribed under
Section 141(3)(g) of the Act and he is not disqualified for
re-appointment.
Auditors' Report
(i) Emphasis of Matter given for Note 37(a) of the Standalone Financial
Statements -is self explanatory and do not call for any further
comments.
(ii) Emphasis of Matter given for Note 37(b) of the Standalone
Financial Statements - is self explanatory and do not call for any
further comments.
(iii) Explanation for point no.(a) of Consolidated Audit Report - in
respect of note 35(c) of CFS.
Secretarial Auditor
The Board has appointed Mr. P. Konda Reddy, Practicing Company
Secretary, to conduct Secretarial Audit for the FY 2014-15. The
Secretarial Audit Report for the financial year ended 31st March, 2015
is an Annexure to this Report. The said report does not contain any
qualification, reservation and adverse remarks.
Establishment of Vigil Mechanism:
The Company has established a vigil mechanism in the form of Whistle
Blower Policy in line with Listing Agreement, to deal with instances of
unethical and / or improper conduct, actual or suspected fraud,
violation of company's code of conduct and suitable steps to
investigate and correct the same. The details of the Whistle Blower
Policy are furnished in the Corporate Governance Report and the same is
posted on the website of the Company.
Extract of Annual Return
The extract of the Annual Return in Form MGT-9 as provided under
Section 92(3) of the Act is given as Annexure to this Report.
Particulars of Loans, Guarantees and Investments:
The details of loans given, investments made, guarantees given and
securities provided under Section 186 of the Companies Act have been
provided in the notes to the standalone financial statements.
Particulars of Contracts or Arrangements with Related Parties
All contracts or arrangements with related parties, entered into or
modified during the financial year, were on arm's length basis and in
the ordinary course of business. All such contracts or arrangements
have been approved by the Audit Committee.
During the year, the Company had certain material transactions referred
to in Section 188 of the Companies Act, 2013 with related parties.
Accordingly, the disclosure of Related Party Transactions as required
under Section 134(3) of the Companies Act in Form AOC-2 is applicable
and given as annexure to this Report. Attention of Members is drawn to
the disclosure of transactions with related parties set out in Notes to
Accounts - Note No. 34B forming part of the Standalone financial
statements.
The company has formulated a policy on related party transactions in
line with Listing Agreement. The policy intends to ensure that proper
reporting; approval and disclosure processes are in place for all
transactions between the Company and related parties.
Material changes and commitments affecting the financial position of
the company:
There are no material changes and commitments affecting the financial
position of the Company which have occurred between March 31,2015 and
the date of this Report.
Risk management:
The company has a risk management policy and framework to identify,
evaluate business risks and opportunities. This framework seeks to
create transparency, minimize adverse impact on the business
objectives, and enhance the company's competitive advantage. This
framework defines the risk management approach across the enterprise at
various levels including documentation and reporting.
Your company has a Risk Management Committee and further details are
set out in the Corporate Governance Report forming part of Directors'
Report.
Conservation of Energy, Technology absorption and Foreign Exchange
Earnings and Outgo:
The particulars in respect of conservation of energy, technology
absorption and foreign exchange earnings and outgo, as required under
Section 134(3)(m) of the Companies Act, 2013 read with the Companies
(Accounts) Rules, 2014 is appended as Annexure to this Report.
Particulars of Employees:
The percentage of increase in remuneration of each director, Chief
Financial Officer, and Company Secretary during the financial year
2014-15, ratio of the remuneration of each director to the median
remuneration of the employees of the company for the financial year
2014-15 and the comparison of remuneration of each KMP against the
performance of the company are as under:
Sl. Name of the director/ Remune- % increase in
No. KMP and designation ration remuneration
of director/ in the financial
KMP for year 2014-15
financial
year
2014-15
1. Mr. D. Vijay Sen Reddy - 24,00,000 Nil
Managing Director
2. Mr. K. Ravi Kumar - 18,00,000 Nil
Whole Time Director
3. Mr. Sumit Sen 14,40,000 Nil
4. Mr. P. Bhaskara Rao - 10,44,000 Nil
CFO
5. Ms. D. Madhavi Latha 6,36,000 Nil
Sl. Name of the director/ Ratio of remune- Comparison of
No. KMP and designation ration of each the remuneration
director/to of the KMP
median remune- against the
ration of performance of
employees the company
1. Mr. D. Vijay Sen Reddy - 22.22 The remuneration
Managing Director of the Directors
& KMPs is well
2. Mr. K. Ravi Kumar - 16.67 within the
Whole Time Director industry limits
and in tandem
with the
3. Mr. Sumit Sen 13.33 performance of
the company
4. Mr. P. Bhaskara Rao - 9.67
CFO
5. Ms. D. Madhavi Latha 5.89
During the period under review, no employee of the company is employed
throughout the year and in receipt of Rs. 60 lacs or more, or employed
for part of the year and in receipt of Rs. 5 laks or more a month,
under Rule 5(2) of Companies (Appointment and Remuneration of
Managerial Personnel) Rules, 2014.
Nomination & Remuneration Committee:
Your company has a Nomination and Remuneration Committee and further
details are set out in the corporate governance report forming part of
the Directors' Report.
The board has, on the recommendation of the Nomination and Remuneration
Committee framed a policy for selection and appointment of Directors,
Key Management Personnel and Senior Management including criteria for
determining qualifications, positive attributes, independence of a
Director and other matters provided under Section 178(3) of the
Companies Act, 2013.
Board Evaluation
Your Company conducted a formal Board Effectiveness Review as part of
its efforts to evaluate, identify improvements and thus enhance the
effectiveness of the Board of Directors (Board), its Committees, and
individual directors. This was in line with the requirements mentioned
in the Companies Act and the Listing Agreement.
The Corporate HR team of the company worked directly with the Chairman
and the Nomination and Remuneration Committee of the Board, to design
and execute this process which was adopted by the Board.
Corporate Social Responsibility:
In compliance with Section 135 of the Companies Act, 2013 read with the
Companies (Corporate Social Responsibility) Rules, 2013 the company has
constituted a Corporate Social Responsibility Committee and the details
forms part of the Corporate Governance Report.
Human Resources:
Your Company recognizes "Human Resource" as its main asset. Your
Company HR policy aims at enhancing individual capabilities for future
readiness, driving greater employee engagement and strengthening
employee relations further.
Considering the present market conditions, your Company has downsized
its human resources and retaining only that are directly relevant to
its growth at this stage. To attract and retain people, your Company
provides a judicious combination of attractive career, personal growth
and a lucrative compensation structure. Your Company places great
importance on nurturing and retaining the best skills in the industry.
Code of Conduct & Declaration by MD & CEO:
Your Company has laid down a Code of Conduct for all Board members,
Senior Management and Independent Directors of the company in line with
the provisions of clause 49 of the Listing Agreement and Schedule V to
Companies Act, 2013. The Code of Conduct has been posted on the website
of the Company.
A declaration by the Managing Director & CEO stating that all the Board
Members and senior management personnel have affirmed their compliance
with the Code of Conduct for the financial year ended March 31, 2015,
is annexed to the Corporate Governance Report.
Directors' Responsibility Statement
In terms of provisions of Section 134(5) of the Act, your Directors
confirm that:
(i) in the preparation of the annual accounts, the applicable
accounting standards had been followed along with proper explanation
relating to material departures;
(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 as at 31st March, 2015 and the profit and loss 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 this Act 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;
(v) the Directors had laid down internal financial controls to be
followed by the Company and that such internal financial controls are
adequate and were operating effectively; and
(vi) the Directors had devised proper systems to ensure compliance with
the provisions of all applicable laws and that such systems were
adequate and operating effectively.
Acknowledgements
Your Directors would like to express their sincere appreciation for the
assistance and co-operation received from the vendors and stakeholders
including financial institutions, banks, Central and State Government
authorities, customers and other business associates, who have extended
their valuable and sustained support and encouragement during the year
under review. It will be the Company's endeavour to build and nurture
these strong links with its stakeholders.
Your Directors wish to place on record their sincere appreciation to
all the employees for their dedication and commitment. The hard work
and unstinting efforts of the employees have enabled the Company to
sustain and further consolidate its position in the industry.
On behalf of the Board
Sd/-
Place : Hyderabad D. Vijay Sen Reddy
Date :14th August, 2015 Chairman & Managing Director
Mar 31, 2014
Dear Members,
The Directors are pleased to present the Twentieth Annual Report, on
the business and operations of Prajay Engineers Syndicate Limited
together with the audited accounts for the financial year ended 31st
March 2014.
FINANCIAL RESULTS
The Company''s revenue, expenditure and results of operations are
presented as below showing both the consolidated and standalone
financial results.
(Rs. in Lacs)
Year ended
Particulars 31st March, 2014
Standalone Consolidated
Gross Turnover 8747.78 7267.17
Profit before interest and Depreciation (317.44) (1218.33)
Depreciation 347.07 358.10
Profit before Tax (797.92) (1756.58)
Provision for taxation (595.01) (576.85)
Profit/(Loss) after tax (202.91) (1216.29)
Transfer to General Reserve - -
Dividend - -
EPS
Basic (0.30) (1.74)
Diluted (0.30) (1.74)
(Rs. in Lacs)
Year ended
Particulars 31st March, 2013
Standalone Consolidated
Gross Turnover 13776.53 9670.07
Profit before interest and Depreciation 1026.59 141.84
Depreciation 323.33 332.54
Profit before Tax 548.83 (350.22)
Provision for taxation 350.21 358.94
Profit/(Loss) after tax 198.61 (1220.94)
Transfer to General Reserve - -
Dividend - -
EPS
Basic 0.29 (1.75)
Diluted 0.29 (1.75)
REVIEW OF OPERATIONS AND OUTLOOK OF THE COMPANY:
During FY2013-14, subdued sales, increased unsold inventory levels and
high leverage undermined the sector''s performance. Political
uncertainty, slow economic growth, sustained weakening of the Indian
Rupee, rising inflation and hardening interest rates continued to be
the key barriers to improving demand.
The divison of state into two, most talked about elections after
bifurcation, the forming of new governments, immensely affected the
sentiments of the home buyers in the State especially in Hyderabad and
surroundings, and made the investors to adopt a wait and watch policy.
Hence the overall performance of the company is affected and the
revenues are reduced by around 40% when compared to last year''s
revenues.
Although financial year 2013-14 was a difficult year for the real
estate sector the long term potential for the sector remains intact and
it continues to be an important catalyst to the nations''s overall
economic growth.
With the real estate markets and customers sentiments closely
correlated to the overall growth in the Indian economy, your company
expects that the real estate industry would continue to remain under
pressure for the next fiscal year. However, your company is committed
to meet and exceed the expectations of all its stakeholders.
DIVIDEND
Considering adverse economic environment during the year 2013-14 and
reduced liquidity position in the market as a whole and with a view to
conserve the resources for the smooth operations of the company, your
Directors have not recommended any dividend for the year under review.
FIXED DEPOSITS:
During the financial year ended 31.3.2014, the company has not accepted
fresh deposits. The company has no overdue deposits except unclaimed
deposits. Interest is served regularly as per the terms of the deposit
scheme.
Broadly Sec. 73 & 74 of Companies Act, 2013 provide that the company
may accept deposits from members and / or public on passing the
resolution in general meeting of the members of the company. The
company, if necessary, will start accepting deposits after complying
with the provisions of sec. 73 & 74 and Companies (Acceptance of
Deposits) rules, 2014.
SHARE CAPITAL
There is no change in the capital structure of the company during the
year under review.
TRANSFER TO THE INVESTOR EDUCATION & PROTECTION FUND (IEPF)
According to Section 205C of the Companies Act, 1956, read with
Investor Education and Protection Fund (Awareness and Protection of
Investors) Rules, 2001 the unclaimed dividend amounting to 5,16,602/-
(Rupees Five Lacs Sixteen Thousand Six Hundred and Two only) for the
financial year 2005-06, was transferred to the Investor Education and
Protection Fund established by the Central Government during the year
under review.
DIRECTORS
The Board of Directors of your Company comprises of 7 (Seven) Directors
as on the date of this report representing the optimum blend of
professionalism, knowledge and having varied experience in different
disciplines of corporate functioning. Of these, 4 (Four) Directors are
Non-Executive Directors.
Mr. Ravinder Reddy, Director of the company resigned to his office
during the year under review w.e.f. 21.9.2013 and Mr. D. Chakradhar
Reddy, Independent Director has resigned to his office w.e.f.
29.4.2014.
Pursuant to the provisions of Sec. 149 of the Companies Act, 2013, Mr.
M. Raja Gopal Reddy ceases to be an Independent Director w.e.f.
1.4.2014 (i.e. the date of commencement of the Companies Act, 2013), by
virtue of his voting rights (together with his relatives) increasing by
more than 2% in the total voting power of the company and is now only a
Non-Executive Director Pursuant to provisions of Section 152 of the
Companies Act, 2013 and Article 86 of the Articles of Association of
the Company, Mr. K. Ravi Kumar is liable to retire by rotation at the
ensuing Annual General Meeting and being eligible offers himself for
re-appointment. Your Board of Directors recommend for his
re-appointment.
Brief profile of Mr. K. Ravi Kumar, the nature of his expertise in
specific functional areas and the number of companies in which he holds
directorships and membership/chairmanships of committees of the Board,
as stipulated under Clause 49 of the listing agreement with the stock
exchanges, are provided at the end of the notice and forms part of the
Report on Corporate Governance section of the Annual Report.
The Companies Act, 2013 provides for appointment of Independent
Directors. Sub-section (10) of Section 149 of the Companies Act, 2013
(effective from 1st April 2014) provides that Independent Director
shall hold office for a term of up to five consecutive years on the
Board of a Company and shall be eligible for re-appointment on passing
a special resolution by the shareholders of the Company.
Further sub-section (11) states that no Independent Director shall be
eligible for more than two consecutive terms of five years. Sub-section
(13) states that the provisions of retirement by rotation as defined in
subsections (6) of Section 152 of the Companies Act 2013 shall not
apply to such Independent Directors. The Securities and Exchange Board
of India (SEBI) vide its circular no. CIR/CFD/POLICY CELL/2/2014 dated
17th April 2014 has amended the Clause 49 of the Listing Agreement and
as per the amended clause, the Director who has already served as an
Independent Director for five years or more in a Company as on 1st
October 2014 shall be eligible for appointment, for one more term of up
to five years only.
In view of the above stipulations, the appointment of the following
Independent Directors for a term of five years is proposed in the
ensuing Annual General Meeting:
1. Mr. Vijay Kishore Mishra
2. Mr. N. Nageshwar Rao
3. Mr. S.K. Rudresh
Brief profile of the aforesaid Directors, the nature of their expertise
in specific functional areas and the number of Companies in which they
hold directorship and membership/chairmanship of committees of the
Board, as stipulated under Clause 49 of the listing agreement with the
stock exchanges, are provided at the end of the notice and forms part
of the Report on Corporate Governance section of the Annual Report.
CORPORATE GOVERNANCE REPORT
Your Company endeavors to maximize the wealth of the shareholders by
managing the affairs of the Company with a pre-eminent level of
accountability, transparency and integrity.
A detailed report on corporate governance practices followed by your
Company, in terms of Clause 49 of the Listing Agreement with stock
exchanges, is provided separately in this annual report. The members
are requested to refer to the same.
CERFICATION AS REQUIRED UNDER CL. 49(V) OF THE LISTING AGREEMENT
The Managing Director and Chief Financial Officer have given a
certificate to the Board with regard to the financial statements for
the year ending 31st March 2014, as contemplated under Clause 49 of the
Listing Agreement and the same is annexed to the Corporate Governance
Report.
INTERNAL AUDIT & CONTROLS
The company has an internal audit system. Its scope of work includes
review of operational efficiency, effectiveness of systems & processes,
compliances and assessing the internal control strengths in all areas.
The Audit Committee reviews adequacy and effectiveness of the Company''s
internal control environment and monitors the implementation of audit
recommendations including those relating to strengthening of the
Company''s risk management policies and systems.
Further, the company proposes to strengthens its internal controls by
taking appropriate measures from time to time as required by the nature
and size of the business of the company or as may be required by the
laws applicable from time to time.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
A Management Discussion and Analysis Report as required under the
Clause 49 of the Listing Agreement is annexed and forms part of the
Director''s Report. The members are requested to refer to the same.
DIRECTORS RESPONSIBILITY STATEMENT
Pursuant to the requirement of Section 217(2AA) of the Companies Act,
1956 and based on the representations received from the operating
management, the Directors hereby confirm that:
i. in the preparation of accounts, the applicable accounting standards
have been followed and that no material departure has been made from
the same;
ii. selected accounting policies were applied consistently. Judgement
and estimates that were reasonable and prudent were made to give a true
and fair view of the Company''s state of affairs as at the end of the
financial year and of the Company''s profits/loss for the year.
iii. proper and sufficient care has been taken to maintain adequate
accounting records in accordance with the provisions of the Companies
Act, 1956, to safeguard the Company''s assets and to prevent and detect
fraud and other irregularities.
iv. the annual accounts were prepared on a going concern basis.
SUBSIDIARY COMPANIES & STATEMENT UNDER SECTION 212 OF THE COMPANIES
ACT, 1956
As on 31.3.2014 your company has 3 subsidiaries viz. Prajay Holdings
Private Limited, Prajay Developers Private Limited (step-down
subsidiary), Prajay Retail Properties Private Limited.
Pursuant to the provision of Section 212(8) of the Companies Act, 1956,
the Ministry of Corporate Affairs vide its circular no. 2/2011 dated
February 8, 2011 has granted general exemption from attaching the
balance sheet, profit & loss account and other documents of the
subsidiary companies with the balance sheet of the Company. The Board
of Directors of your Company has, by a resolution, given consent for
not attaching the balance sheet of the subsidiaries concerned.
Accordingly, the annual accounts and other documents of the
subsidiaries for the year ended 31st March 2014 are not attached to
this Annual Report.
Pursuant to Section 212 of the Companies Act, 1956 a brief statement
related to subsidiary companies has given as annexure to the balance
sheet and the same forms a part of this Annual Report.
The annual accounts of subsidiaries and detailed information will be
made available for inspection by any member of the Company at the
registered office of the Company and also at the registered office of
the concerned subsidiaries. The Company shall furnish a copy of annual
accounts of subsidiaries to the members on demand.
The Audited Consolidated Financial statements in terms of Clause 32 of
the Listing Agreement are prepared in accordance with the Accounting
Standard AS-21 on consolidated financial statements read with
Accounting Standard AS-23 as specified in the Companies (Accounting
Standard) Rules, 2006.
AUDITOR & HIS REPORT
Mr. S.V. Rangan, Chartered Accountant, Statutory Auditor of the Company
holds office till the conclusion of the ensuing Annual General Meeting
and being eligible offered himself for re-appointment. The Company has
received a certificate from the auditors to the effect that his
re-appointment, if made, would be in accordance with the conditions as
specified under Section 141 of the Companies Act, 2013 read with
Companies (Audit and Auditors) Rules, 2014.
The Directors recommend his re-appointment. A resolution proposing
appointment of Mr. S.V. Rangan, Chartered Accountant as the Statutory
Auditor of the Company pursuant to Section 139 of the Companies Act,
2013 forms part of the Notice.
Considering the observation of the statutory Auditor in his report that
the existing internal audit system is not in commensurate with the
nature and size of the business of the company, the company proposes to
appoint an outside agency to strengthen the present team.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNINGS AND OUTGO
The information pertaining to conservation of energy, technology,
absorption, foreign exchange earnings and outgo, as required under
Section 217(1)(e) of the Companies Act, 1956, read with the Companies
(Disclosure of Particulars in the Report of the Board of Directors)
Rules, 1988 is furnished below:
Conservation Of Energy, Technology Absorption:
Even though the company''s nature of business is construction and
property development, which are not power intensive, the company is
putting every effort to conserve and reduce energy consumption,
wherever possible.
HUMAN RESOURCES
Your Company recognizes that "Human Resource" is its main asset. Your
Company HR policy aims at enhancing individual capabilities for future
readiness, driving greater employee engagement and strengthening
employee relations further.
Considering the present market conditions, your Company has downsized
its human resources and retaining only that are directly relevant to
its growth at this stage. To attract and retain people, your Company
provides a judicious combination of attractive career, personal growth
and a lucrative compensation structure. Your Company places great
importance on nurturing and retaining the best skills in the industry.
PARTICULARS OF EMPLOYEES
No employees of the company is in receipt of remuneration in excess of
the limits prescribed under Sec.217(2A) of the Companies Act, 1956,
read with the Companies (particulars of employees) rules, 1975 and as
amended from time to time.
CODE OF CONDUCT
Your Company has laid down a Code of Conduct for all Board members and
Senior Management of the Company. The Code of Conduct has been posted
on the website of the Company.
In pursuance of Clause 49 of the Listing Agreement, the declaration by
the Managing Director of the Company affirming compliance with the Code
of Conduct by the Directors and senior management personnel forms part
of the Corporate Governance Report.
APPRECIATIONS AND ACKNOWLEDGEMENTS
Your Company continues to strive to build shareholder value and your
Directors look at the future with confidence. Your Directors place on
record their appreciation for the co-operation and assistance received
from investors, customers, business associates, bankers,
vendors/suppliers and financial institutions. The Directors also thank
the State Government, other Government Departments and Governmental
Agencies for their cooperation and support.
Your Directors are especially thankful to the employees of the Company,
its subsidiaries and associates at all levels, whose dedication,
co-operation, support has enabled the company to withstand to the
prevailing business conditions. Your Directors seek, and look forward
to the same support during the future years of it''s'' journey.
On behalf of the Board
Sd/- Sd/-
Place : Hyderabad D. Vijay Sen Reddy Sumit Sen
Date :14th August, 2014 Managing Director Whole Time Director
Mar 31, 2013
To The Members,
The Directors have pleasure in presenting 19th Annual Report on the
business and operations of the Company together with audited results
for the financial year ended 31st March, 2013.
FINANCIAL RESULTS:
(Rs.in Lacs)
Year ended 31st
March 2013 Year ended 31st
March 2012
Particulars Standalone Consolidated Standalone Consolidated
Gross Turnover 13776.53 9670.07 7919.08 6920.30
Profit before
interest and 1026.59 141.84 741.90 413.25
Depreciation
Depreciation 323.33 332.54 385.54 391.18
Profit before Tax 548.83 (350.22) 80.60 (254.03)
Provision for taxation 350.21 358.94 658.26 658.28
Profi t / (Loss)
after tax 198.61 (1220.94) (577.66) (911.69)
Transfer to
General Reserve
Dividend
EPS
Basic 0.29 (1.75) (0.83) (1.31)
Diluted 0.29 (1.75) (0.83) (1.31)
The year 2012-13 was muted for the property sector across Residential,
Commercial and Retail Real Estate. An adverse economic environment,
high infl ation and high interest rates continued to affect demand.
Property developers continued to be constrained by reduced liquidity,
rising project costs, approval delays and higher leverage.
Despite the constraints, your company''s gross turnover grew by 74% over
the last year''s and posted a profi t after tax of Rs. 198.61 lacs.
For a detailed analysis on the performance of the company for the year
under review, please refer to Management''s Discussion and Analysis
section of the Annual Report.
DIVIDEND
Considering the adverse economic environment during the year 2012-13
and reduced liquidity position in the market as a whole and with a view
to conserve the resources for the smooth operations of the Company,
your Directors have not recommended any dividend for the year under
review.
DEPOSITS
During the year under review, the company has accepted fresh deposits
to the tune of Rs. 0.50 lacs and repaid matured / premature deposits to
the tune ofRs. 5.41 lacs. The amount outstanding at the end of the year
at 31.3.2012 is Rs. 39.32 lacs (including fresh & renewed deposits).
Interest is served regularly as per the terms of the deposit scheme.
REPORT ON CORPORATE GOVERNANCE
A separate section on corporate governance with a detailed compliance
report thereon is annexed and forms a part of the annual report in
terms of Clause 49 (VI) of the Listing agreement with Stock Exchanges.
The auditors'' certifi cate in respect of compliance with the provisions
concerning corporate governance, as required by Clause 49 of the
Listing Agreement is annexed to this Report.
MANAGEMENT DISCUSSION & ANALYSIS REPORT:
A report on management discussion and analysis is given in a separate
section in this Annual Report forming part of the Directors'' Report.
SUBSIDIARY COMPANIES
As on 31.3.2013 your company has 3 subsidiaries viz. Prajay Holdings
Private Limited, Prajay Developers Private Limited (step-down
subsidiary) and Prajay Retail Properties Private Limited.
Further to the application by one of the company''s subsidiary M/s.
Prajay Realty Private Limited, to the Registrar of Companies under Fast
Track Exist Scheme, the same has been approved and the company is
dissolved.
As per Section 212 of the Companies Act, 1956, the company is required
to attach the Directors'' report, Balance Sheet, and Profi t and Loss
Account of the subsidiaries to it''s Annual Report.
The Ministry of Corporate Affairs, Government of India vide its
circular no.2/2011 dated 8th February, 2011 has granted general
exemption to holding companies from the provisions of Sec. 212 of the
Companies Act, 1956 subject to fulfi llment of certain conditions
mentioned therein. Accordingly the Annual Report for 2012-13 does not
contain the fi nancial statements of the subsidiaries. However, a
statement containing the fi nancial data of the subsidiaries has been
furnished along with the Statement pursuant to Sec. 212(1) (e) of the
Companies Act, 1956 and forms part of the Annual Report.
The Audited Annual Accounts and related information of the subsidiaries
will be made available for inspection by any member of the Company/
it''s subsidiaries at the head offi ce of the company at Hyderabad
during business hours.
The audited consolidated fi nancial statements in terms of Clause 32 of
the Listing Agreement are prepared in accordance with the Accounting
Standard AS-21 on consolidate fi nancial statements read with
Accounting Standard AS-23 as specifi ed in the Companies (Accounting
Standards) Rules, 2006.
DIRECTORS
As per Article 86 of the Articles of Association of the Company, Sri
Vijay Kishore Mishra, Sri N. Nageshwara Rao and Sri M. Raja Gopala
Reddy, Directors retire by rotation at the ensuing Annual General
Meeting and being eligible, offer themselves for reappointment and your
directors recommend their re-appointment at the ensuing Annual General
Meeting.
Brief profi le of the directors proposed to be re-appointed, nature of
their experience in specifi c functional areas is provided in the
Corporate Governance Report.
AUDITORS
The Statutory Auditor Mr. S.V. Rangan, Chartered Accountant holds offi
ce until the conclusion of the ensuing Annual General Meeting and has
confi rmed his eligibility and willingness to accept offi ce of the
Statutory Auditor for F.Y. 2013-14, if reappointed.
The Audit Committee and the Board of Directors recommend the
re-appointment of Mr. S.V. Rangan, Chartered Accountant as Statutory
Auditor of the company for F.Y. 2013-14 for shareholders'' approval.
DIRECTORS'' RESPONSIBILITY STATEMENT
Pursuant to Section 217(2AA) of the Companies Act, 1956, your Directors
hereby confi rm that:
(i) in the preparation of Annual Accounts the applicable accounting
standards have been followed and there has been no material departure;
(ii) 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, 2013 and of the profi t of the Company on
that date;
(iii) proper and suffi cient 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;
(iv) the annual accounts have been prepared on a going concern basis;
CEO''s DECLARATION AS REQUIRED UNDER CLAUSE 49 OF THE LISTING AGREEMENT:
Declaration as required under Clause 49(1) (D) (ii) of the Listing
Agreement with regard to compliance of Code of Conduct of the Company
is annexed to this Report.
PARTICULARS OF EMPLOYEES:
No employee was in receipt of remuneration in excess of the limits
prescribed under Sec. 217(2A) of the Companies Act, 1956 read with the
Companies (Particulars of Employees) Rules, 1975 and hence the
prescribed information is not required to be given.
Clarifi cations to the observations made in Auditor''s Report:
i. Regarding Note 37(a) of the Financial Statements  As a result of
economic slowdown and recession in realty sector the realization from
customers are slow.
ii. Regarding Note 37(b) of the Financial Statements ÂDue to long term
involvement in such projects, no provision has been considered
necessary. Point no. vii of Annexure to Standalone Auditors Report:
The Audit Committee had elaborate discussions on the subject. The
company has an equipped Internal Audit System and the team is headed by
a fi nancial expert. Since it is been observed by the Auditor that the
same is not commensurate with the size and nature of the business of
the company, the company has resolved to initiate steps to strengthen
the team.
Auditors'' Report on Consolidated Balance sheet:
i. Regarding Note 35(a) of the Consolidated Financial Statements  As
a result of economic slowdown and recession in realty sector the
realizations from customers are slow.
ii. Regarding Note 35 (b) of the Consolidated Financial Statements -
Due to long term involvement in such projects, no provision has been
considered necessary
DISCLOSURE OF PARTICULARS:
Information as required under the Companies (Disclosure of Particulars
in the Report of Board of Directors) Rules, 1988, relating to
conservation of energy, technology absorption, foreign exchange
earnings and outgo is furnished below:
Conservation of Energy & Technology Absorption:
Even though the company''s nature of business is construction and
property development, which are not power intensive, the company is
putting every effort to conserve and reduce energy consumption.
Foreign Exchange Earnings and Outgo:
Foreign Exchange Earnings: Rs. Nil
Foreign Exchange Outgo: Rs. 7,41,000/-
ACKNOWLEDGEMENTS
Your directors take this opportunity to thank the Financial
Institutions, Banks, Government and semi-Government agencies, suppliers
and regulatory authorities, stock exchanges and all other stakeholders
for their continued co-operation and support.
Your Directors also wish to place on record their appreciation for the
continued co-operation and support extended by the customers, joint
venture partners and associates.
For and on behalf of the Board
Place : Hyderabad D. Vijay Sen Reddy
Date : 17.09.2013 Chairman
Mar 31, 2012
The Directors have pleasure in presenting their 18th Annual Report on
the business and operations of the Company together with the audited
results for the financial year ended 31st March, 2012.
FINANCIAL RESULTS:
(Rs. in Lacs)
Year ended Year ended
Particulars 31st March,
2012 31st March,
2011
Standalone Consolidated Standalone Consolidated
Gross Turnover 7919.08 6920.30 8830.87 8645.55
Profit before
interest and
Depreciation 741.90 413.25 1707.31 1511.75
Depreciation 385.54 391.18 432.03 437.64
Profit before Tax 80.60 (254.03) 466.06 264.88
Provision for
taxation 658.26 658.28 451.75 451.75
Profit after tax (577.66) (911.69) 14.31 (193.99)
Transfer to General
Reserve -- -- -- --
Dividend -- -- -- --
EPS
Basic (0.83) (1.31) 0.02 (0.28)
Diluted (0.83) (1.31) 0.02 (0.28)
The year was characterized by sustained rise in inflation, as a result
of a sharp increase in the prices of commodities. This was further
exacerbated by the supply side constraints and increased borrowing
costs. Rising interest rates, heavy taxation and soaring costs of raw
materials and production cost has brought the real estate sector under
pressure in the last financial year. Despite of all these odds, your
company could achieve a gross turnover of Rs. 7919.08 lacs as against
Rs. 8830.87 lacs during the previous year.
For a detailed analysis of the performance of the company for the year
under review, please refer to Management's Discussion and Analysis
section of the Annual Report.
DIVIDEND
The Board of Directors has not recommended any dividend for the
financial year ended 31st March, 2012. DEPOSITS
During the year under review, the company has accepted fresh deposits
to the tune of Rs. 6.65 lacs and repaid matured deposits to the tune of
Rs. 19.60 lacs. The amount outstanding at the end of the year at
31.3.2012 is Rs. 43.58 lacs (including fresh & renewed deposits). As on
31st March, 2012 an amount of Rs. 0.50 lacs were matured but not
claimed by the depositors. Interest is served regularly as per the
terms of the deposit scheme.
DIRECTORS
Mr. D.S. Chandra Mohan Reddy, Chairman & Managing Director had expired
on 24.1.2012 and Mr. D. Vijay Sen Reddy is appointed as new Chairman &
Managing Director of the company for 3 years at the board meeting held
on 14.2.2012.
Sri D. Chakradhar Reddy, and Sri Rudresh Veerabhadrappa, Directors
retire by rotation at the ensuing Annual General Meeting and being
eligible, offer themselves for reappointment. Your Directors recommend
their re- appointment at the ensuing Annual General Meeting.
Brief resume of the directors proposed to be appointed and
re-appointed, nature of their experience in specific functional areas
are provided in the Corporate Governance report.
DIRECTORS' RESPONSIBILITY STATEMENT
Pursuant to Section 217(2AA) of the Companies Act, 1956, your Directors
hereby confirm that:
(i) in the preparation of Annual Accounts the applicable accounting
standards have been followed and there has been no material departure;
(ii) 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, 2012 and of the loss of the Company on that
date;
(iii) 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;
(iv) the annual accounts have been prepared on a going concern basis;
PARTICULARS OF SUBSIDIARY COMPANIES - SEC. 212 OF THE COMPANIES ACT,
1956
As on 31.3.2012 your company has 4 subsidiaries viz. Prajay Holdings
Private Limited, Prajay Developers Private Limited (step-down
subsidiary), Prajay Retail Properties Private Limited and Prajay Realty
Private Limited.
Your company has decided to close the non-operative subsidiary company
namely Prajay Realty Private Limited. Accordingly, company has
submitted the necessary application as per Sec. 560 of the Companies
Act, 1956 under Fast Track Exit Mode for striking off the name of the
company from the Register of Companies.
As per Section 212 of the Companies Act, 1956, we are required to
attach the Directors' Report, Balance Sheet, and Profit and Loss
account of our subsidiaries to our annual report. The Ministry of
Corporate Affairs, Government of India vide its circular no.2/2011
dated 8th February, 2011 granted general exemption to holding companies
from the provisions of Sec. 212 of the Companies Act, 1956 subject to
fulfillment of certain conditions mentioned therein. Accordingly the
company has decided not to attach the details of its subsidiaries.
However, a statement containing the financial data of the subsidiaries
has been furnished along with the Statement pursuant to Sec. 212(1)
(e) of the Companies Act, 1956 forming part of Annual Report.
The Annual Accounts of the subsidiaries and related detailed
information will be made available free of cost to any member of the
Company/ its subsidiaries seeking such information at any point of time
and are also available for inspection by any member of the Company/ its
subsidiaries at the registered office of the holding company and of the
subsidiary companies concerned.
CONSOLIDATED FINANCIAL STATEMENTS
The audited consolidated financial statements of the company are
prepared in accordance with the accounting standard AS-21 on
consolidate financial statements read with Accounting Standard AS-23 on
accounting for investments in associates, listing agreement as
prescribed by the Securities and Exchange Board of India.
AUDITORS
The Statutory Auditor Mr. S.V. Rangan, Chartered Accountant holds
office until the conclusion of the ensuing Annual General Meeting and
being eligible, is recommended for re-appointment. A certificate from
the auditor has been obtained to the effect that the re-appointment, if
made, would be within the limits as specified under Sec. 224(1B) of the
Companies Act, 1956.
REPORT ON CORPORATE GOVERNANCE
A separate section on corporate governance with a detailed compliance
report thereon is annexed and forms a part of the annual report in
terms of Clause 49 (VI) of the Listing agreement with Stock Exchange.
The Auditors' Certificate in respect of compliance with the
provisions concerning corporate governance, as required by clause 49 of
the listing agreement is also annexed.
MANAGEMENT DISCUSSION & ANALYSIS REPORT:
A report on management discussion and analysis is given in a separate
section in this Annual Report forming part of the Directors' Report.
CEO's DECLARATION AS REQUIRED UNDER CLAUSE 49 OF THE LISTING
AGREEMENT:
Declaration as required under Clause 49(1) (D) (ii) of the listing
agreement with regard to compliance of code of conduct of the company
is annexed to this Report.
PARTICULARS OF EMPLOYEES:
No employee was in receipt of remuneration in excess of the limits
prescribed under Sec. 217(2A) of the Companies Act, 1956 read with the
Companies (Particulars of Employees) Rules, 1975 and hence the
prescribed information is not required to be given.
EMPLOYEE RELATIONS
Employee relations were cordial during the year and the Board would
like to place on record its appreciation to all the employees of the
Company for their continued support and services.
CLARIFICATIONS TO THE OBSERVATIONS MADE IN AUDITORS' REPORT:
PointNo.4 (a), (b) and (c):
i) Regarding Note 39(a) of the Financial Statements - As a result of
economic slowdown and recession in realty sector the realizations from
customers are slow.
ii) Regarding Note 39(b) of the Financial Statements - The Board has
considered these alterations at the request of the respective customers
and the formal documentation is being completed soon.
iii) Regarding Note 39(c) of the Financial Statements - Due to long
term involvement in such projects, no provision has been considered
necessary.
Point no. vii of Annexure to Auditors Report:
The Audit Committee had elaborate discussions on the said point. The
company has initiated steps to see that the scope and coverage of
internal audit is increased to commensurate with the nature and size of
the business of the company.
Point No. 3(a), 3(b) and 3(c) of Auditors' Report on Consolidated
Balance sheet:
i) Regarding Note 36(a) of the Consolidated Financial Statements - As a
result of economic slowdown and recession in realty sector the
realizations from customers are slow.
ii) Regarding Note 36(b) of the Consolidated Financial Statements - The
Board has considered these alterations at the request of the respective
customers and the formal documentation is being completed soon.
iii) Regarding Note 36(c) of the Consolidated Financial Statements -
Due to long term involvement in such projects, no provision has been
considered necessary.
DISCLOSURE OF PARTICULARS:
Information as required under the Companies (Disclosure of Particulars
in the Report of Board of Directors) Rules, 1988, relating to
conservation of energy, technology absorption, foreign exchange
earnings and outgo is furnished below:
Conservation of Energy & Technology Absorption:
Even though the company's nature of business is construction and
property development, which are not power intensive, the company is
putting every effort to conserve and reduce energy consumption.
Foreign Exchange Earnings and Outgo:
Foreign Exchange Earnings: Rs. Nil
Foreign Exchange Outgo: Rs. 9,34,898/- lacs
ACKNOWLEDGEMENTS
Yours directors take this opportunity to thank the financial
Institutions, Banks, Government and semi-Government agencies, suppliers
and regulatory authorities, stock exchanges and all stakeholders for
their continued co- operation and support to the company.
Your Directors also wish to place on record their appreciation for the
continued co-operation and support extended by the customers, vendors,
joint venture partners / associates.
For and on behalf of the Board
Place : Hyderabad D. Vijay Sen Reddy
Date : 31.08.2012 Chairman
Mar 31, 2011
The Members,
The Directors have pleasure in presenting the 17th Annual Report on
the business and operations of the Company together with the audited
results for the financial year ended 31st March, 2011.
FINANCIAL RESULTS:
(Rs. in Lacs)
Particulars Year ended Year ended
31st March 2011 31st March 2010
Standalone Consolidated Standalone Consolidated
Gross Turnover 8830.87 8645.55 8410.52 7153.09
Profit before interest
and Depreciation 1707.31 1511.75 2019.79 1432.94
Depreciation 432.02 437.04 410.31 454.66
Profit before Tax 466.07 264.88 307.66 (323.55)
Provision for taxation 451.75 451.75 104.44 104.48
Profit after tax 14.31 (193.99) 203.22 (428.03)
Transfer to General
Reserve à à à Ã
Dividend à à à Ã
EPS
Basic 0.02 (0.28) 0.51 (1.07)
Diluted 0.02 (0.28) 0.29 (0.60)
Despite several odds viz. recession, political unrest, tight borrowing
norms and general slowdown in the economy and especially in the real
estate sector, your company could report a gross turnover of Rs.
8830.87 lacs as against Rs. 8410.52 lacs for the previous year.
In the challenging environment, your Company continued its focus on
consolidation, stable growth and risk management. Despite tight
liquidity conditions during the second- half of last fiscal, your
Company met all its stakeholder commitments in time during the year,
including its commitments towards lending institutions.
For a detailed analysis of the performance of the company for the year
under review, please refer Management's Discussion and Analysis section
of the Annual Report.
DIVIDEND
Your company currently has many projects under implementation. In order
to fund these projects in their development, expansion and
implementation stages, conservation of funds is of vital importance.
Therefore, your directors have not recommended any dividend for the
financial year 2010-11.
DEPOSITS
During the year under review, the company has passed a resolution at
the board meeting held on 15.10.2010 and released an advertisement on
20.10.2010 under the provisions of Sec. 58A of the Companies Act, 1956
and as per the Companies (Acceptance of Deposits) Rules, 1975 inviting
deposits from shareholders, employees and general public and collected
about 56.53 lacs till 31st March. As on 31st March, 2011 no amounts
were due for repayment and interest is being served regularly as per
the terms of the deposit scheme.
DIRECTORS
In accordance with the provisions of the Companies Act, 1956 and the
Articles of Association of the Company, Sri K. Ravi Kumar, Sri N.
Ravinder Reddy and Sri Sumit Sen, Directors retire by rotation at the
ensuing Annual General Meeting and being eligible, offer themselves for
reappointment and therefore the board recommends their re-appointment
at the ensuing Annual General Meeting.
Details of directors appointed / re-appointed are furnished in the
Corporate Governance section.
DIRECTORS' RESPONSIBILITY STATEMENT
Pursuant to Section 217(2AA) of the Companies Act, 1956, your Directors
hereby confirm that:
(i) in the preparation of Annual Accounts for the financial year ended
31st March, 2011, the applicable accounting standards have been
followed and there has been no material departure;
(ii) 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 of the Company on that
date;
(iii) 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;
(iv) the annual accounts have been prepared on a going concern basis;
PARTICULARS OF SUBSIDIARY COMPANIES - SEC. 212 OF THE COMPANIES ACT,
1956
Pursuant to the provisions of Sec. 212 of the Companies Act, 1956,
documents in respect of subsidiaries viz. Balance Sheet, Profit and
Loss Account, Directors' Report and Auditors' Report are required to be
attached to the balance Sheet of the holding company.
In the context of globalization of Indian economy and increased number
of subsidiaries and the introduction of accounting standards on
consolidated financial statements, Ministry of Corporate Affairs has
vide its circular no.2/2011 dated 8th February, 2011 granted general
exemption to holding companies from the provisions of Sec. 212 of the
Companies Act, 1956 subject to fulfillment of certain conditions
mentioned therein.
The Annual Accounts of the subsidiaries and related detailed
information will be made available free of cost to any member of the
Company/ its subsidiaries seeking such information at any point of time
and are also available for inspection by any member of the Company/ its
subsidiaries at the head office of the holding company and of the
subsidiary companies concerned.
The financial data of the subsidiaries has been furnished along with
the Statement pursuant to Sec. 212(1)(e) of the Companies Act, 1956
forming part of Annual Report.
CONSOLIDATED FINANCIAL STATEMENTS
In accordance with the Accounting Standard AS-21 on consolidated
financial statements, the audited consolidated financial statements are
attached to this Annual Report.
AUDITORS
The Statutory Auditor Mr. S.V. Rangan, Chartered Accountant holds
office until the conclusion of the ensuing Annual General Meeting and
being eligible, is recommended for re-appointment. A certificate from
the Auditor has been received to the effect that the re-appointment, if
made, would be within the limits as specified under Sec. 224(1B) of the
Companies Act, 1956.
REPORT ON CORPORATE GOVERNANCE
Your company continuously works to improve its governing practices and
processes and always strives to ensure that best practices are
identified, adopted and followed. A detailed report on Corporate
Governance practices followed by your Company, in terms of Clause 49
(VI) of the Listing Agreement with Stock Exchange is separately
provided in this Annual Report. The compliance certificate issued by
Sri P. Konda Reddy, Practicing Company Secretary in line with clause 49
of the Listing Agreement is also provided elsewhere and forms part of
this Report.
MANAGEMENT DISCUSSION & ANALYSIS REPORT:
Pursuant to clause 49 of the Listing Agreement, a report on Management
Discussion and Analysis (MDA) for the year under review is given in a
separate section in this Annual Report.
CEO's DECLARATION AS REQUIRED UNDER CLAUSE 49 OF THE LISTING AGREEMENT:
Declaration as required under Clause 49(1)(D)(ii) of the Listing
Agreement with regard to compliance of Code of Conduct of the company
is annexed to this Report.
PARTICULARS OF EMPLOYEES:
The information required under Section 217(2A) of the Companies Act,
1956, read with the Companies (Particulars of Employees) Rules, 1975 as
amended, are provided in annexure forming pat of this report.
EMPLOYEE RELATIONS
Employee relations were cordial during the year and the Board would
like to place on record its appreciation to all the employees of the
Company for their continued support and services.
CLARIFICATIONS TO THE OBSERVATIONS MADE IN AUDITORS' REPORT:
Point No.4 (a) and (b):
a. As a result of economic slowdown and recession in realty sector the
realizations from customers are slow.
b. Due to long term involvement in such projects, no provision has
been considered necessary.
Point no. vii of Annexure to Auditors Report:
The Audit Committee had elaborate discussions on the said point. The
company will take all steps to see that the scope and coverage of
internal audit is increased to commensurate with the nature and size of
the business of the company.
Point No. 3(c) of Auditors' Report on Consolidated Balance sheet:
Interest on debentures is not provided for the detailed explanation
given for C.15 of Schedule 18 of Consolidated Financial Statement.
DISCLOSURE OF PARTICULARS:
Information as per the Companies (Disclosure of Particulars in the
Report of Board of Directors) Rules,1988, relating to conservation of
energy, technology absorption, foreign exchange earnings and outgo are
furnished below:
Conservation of Energy & Technology Absorption:
Since your company does not own any manufacturing facility, the
requirements pertaining to disclosure of particulars relating to
conservation of energy, research & development and technology
absorption , as prescribed under the Companies (Disclosure of
Particulars in the Report of the Board of Directors) Rules, 1988, are
not applicable. However, adequate measures have been taken to conserve
and reduce energy consumption.
Foreign Exchange Earnings and Outgo:
Foreign Exchange Earnings: Rs. 6.29 lacs
Foreign Exchange Outgo: Rs. 345.96 lacs
ACKNOWLEDGEMENTS
Yours directors take this opportunity to thank the financial
Institutions, Banks, Central and State Governments, regulatory
authorities, stock exchanges and the stakeholders for their continued
co-operation and support to the company.
Your Directors also wish to record their appreciation for the continued
co-operation and support received from the customers, vendors, joint
venture partners / associates.
For and on behalf of the Board
Place : Hyderabad D.S.Chandra Mohan Reddy
Date : 30.08.2011 Chairman & Managing Director
Mar 31, 2010
The Directors have pleasure in presenting the 16th Annual Report
together with the Audited Accounts for the year ended 31 st March 2010
FINANCIAL RESULTS:
Your companys performance during the year as compared with that during
the previous year is summarized below:
Rs in Lacs
Particulars Year ended 31st March
2010 Year ended 31st March
2009
Standalone Consoli
dated Standalone Consoli
dated
Grass Turnover 8410.52 7153.09 8283.60 8285.82
Profit before interest
and pepreciatiqn 2019.79 1432.94 2296.12 2.133.04
Depreciation 410.31 454.66 402.71 408.24
Profit before Tax 307.66 (323.55) 1.43.86 (273.64)
Provision for taxation 104.44 104.48 242.47 245.33
Profit after tax 203.22 (428.03) (98.61) (518.97)
Transfer to General
Reserve - - - -
Dividend - - - -
EPS _ - - -
Basic 0.51 (1.07) (0.25) (1.31)
Diluted 0.29 (0.60) (0.25) (1.31)
The year 2009-10 was a very challenging year for the Company, in view
of the overall economic downturn during the year. However, your
company could report a gross turnover of Rs. 8410.52 lacs as against
Rs. 8283.60 lacs for the previous year. For detailed analysis of the
performance, please refer Managements Discussion and Analysis section
of the Annual Report.
DIVIDEND
Keeping in view the expansion plans & other significant capital
expenditure programmes, your directors have, after due deliberations,
decided to plough back the funds available and hence, do not recommend
any dividend for the financial year 2009-10.
DEPOSITS
During the year under review, the company has not accepted any deposits
as per the provisions of Companies Act, 1956 and Companies (Acceptance
of deposits) Rules, 1975.
DIRECTORS
At the board meeting held on 17th February 2010 Sri M. Raja Gopala
Reddy has been co-opted as an additional directors of the company and
pursuant to Sec. 260 of the Companies Act, 1956 will hold office till
the date of the ensuing Annual General Meeting. Mr. Raja Gopala Reddy
is a graduate of science with more than 30 years of experience in
construction industry. The company has received a notice in writing
from a member under Sec. 257 of the Companies Act, 1956 proposing his
candidature for the office of director of the company.
In accordance with the provisions of the Companies Act, 1956 and the
Articles of Association of the Company, Sri Vijay Kishore Mishra and
Sri N. Nageswara Rao, Directors retire by rotation at the ensuing
Annual General Meeting and being eligible, offer themselves for
reappointment and therefore the board recommends their re-appointment
at the ensuing Annual General Meeting.
The brief resume/details relating to Directors who are to be appointed
re-appointed are furnished in the Corporate Governance section.
DIRECTORS RESPONSIBILITY STATER
In compliance with Section 217(2AA) of the Companies Act, 1956, your
Directors hereby confirm that:
(i) in the preparation of Annual Accounts for the financial year ended
31st March, 2010, the applicable accounting standards had been followed
along with proper explanation relating to material departures;
(ii) the Directors had selected such accounting policies and applied
them consistently and made judgements and estimates that were
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/loss of the Company for that period;
(Mi) 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 going concern
basis.
PARTICULARS OF SUBSIDIARY COMPANIES - SEC. 212 OF THE COMPANIES ACT,
1956
Pursuant to the provisions of Sec. 212 of the Companies Act, 1956,
documents in respect of subsidiaries viz. Balance Sheet, Profit and
Loss Account, Directors Report and Auditors Report are required to be
attached to the balance Sheet of the holding company. An application
was made to the government of India seeking exemption under Sec. 212
(8) of the Companies Act, 1956. The Government of India, Ministry of
Corporate Affairs vide its letter no. 47/633-2010-CL-lll dated
12.08.2010 has granted exemption from the provisions of Sec. 212(1) of
the Companies Act, 1956. Accordingly the said documents are not being
attached with the balance sheet of the company.
The Annual Accounts of the subsidiaries and related detailed
information will be made available free of cost to any member of the
Company/ its subsidiaries seeking such information at any point of time
and are also available for inspection by any member of the Company/ its
subsidiaries at the Registered Office of the Company. The Annual
Accounts of the said Subsidiaries will also be available for
inspection, as above, at the Head Offices of the respective subsidiary
companies.
The financial data of the subsidiaries has been furnished along with
the Statement pursuant to Sec. 212(1)(e) of the Companies Act, 1956
forming part of Annual Report.
CONSOLIDATED FINANCIAL STATEMENTS
In accordance with the Accounting Standard AS-21 on consolidated
financial statements, the audited consolidated financial statements are
attached to this Annual Report.
AUDITORS
Mr. S.V. Rangan, Chartered Accountant has been appointed as Statutory
Auditor of the company at the Extra Ordinary General Meeting held on
15th March 2010 in the casual vacancy arisen by the resignation of then
Auditors M/s. Deloitte Haskins & Sells, Chartered Accountants and holds
office until the conclusion of the ensuing Annual General Meeting and
being eligible, is recommended for re-appointment. A certificate from
the auditor has been received to the effect that the re-appointment, if
made, would be within the limits as specified under Sec. 224(1 B) of
the Companies Act, 1956.
REPORT ON CORPORATE GOVERNANCE
Committed to good corporate governance practices, your company fully
conform to the standards set out by various regulatory authorities and
has implemented and complied with all of its major stipulations.
The Report on Corporate Governance along with the compliance
certificate issued by Sri P. Konda Reddy, Practicing Company Secretary
in line with clause 49 of the Listing Agreement, are attached and forms
part of this Report.
MANAGEMENT DISCUSSIONS ANALYSIS REPORT:
Pursuant to clause 49 of the listing agreement, a report on management
discussion and analysis (MDA) for the year under review is given in a
separate section in this Annual Report.
CEOS DECLARATION AS REQUIRED UNDER CLAUSE 49 OF THE LISTING AGREEMENT:
Declaration as required under Clause 49(1) (D)(ii) of the listing
agreement with regard to compliance of code of conduct of the company
is annexed to this Report.
PARTICULARS OF EMPLOYEES:
In terms of the provisions of Section 217(2A) of the Companies Act,
1956, read with the Companies ( Particulars of Employees) Rules, 1975
as amended, the names and other particulars of the employees are set
out in the Annexure to the Directors Report.
EMPLOYEE RELATIONS
Employee relations were cordial during the year and the Board would
like to place on record its appreciation to all the employees of the
Company for their continued dedicated services and performance.
CLARIFICATIONS TO THE OBSERVATIONS MADE IN AUDITORS REPORT:
PointNo.4(a)and(b):
a. As a result of economic slowdown and recession in realty sector the
realizations from customers are slow.
b. Due to long term involvement in such projects, no provision has
been considered necessary.
Point no. vi of Annexure to Auditors Report:
The Audit Committee had elaborate discussions on the said point. The
company will take all steps to see that the scope and coverage of
internal audit is increased to commensurate with the nature and size of
the business of the company.
Point No. 3(c) of Auditors Report on Consolidated Balance sheet:
Interest on debentures issued by Prajay Holdings Private Limited
(Subsidiary) is not provided for the detailed explanation given
forC.16of Schedule 18of Consolidated Balance Sheet.
CONSERVATION OF ENERGY TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS
AND OUTGO:
Particulars as prescribed under Section 217(1) (e) of the Companies
Act, 1956, read with Companies (Disclosure of Particulars in the Report
of the Board of Directors) Rules, 1988 are as follows:
Conservation of Energy & Technology Absorption:
Since your company does not own any manufacturing facility, the
requirements pertaining to disclosure of particulars relating to
conservation of energy, research & development and technology
absorption , as prescribed under the Companies (Disclosure of
Particulars in the Report of the Board of Directors) Rules, 1988, are
not applicable. However, adequate measures have been taken to conserve
and reduce energy consumption.
Foreign Exchange Earnings and Outgo:
Foreign Exchange Earnings Rs. 31.39 lacs
Foreign Exchange Outgo NIL
ACKNOWLEDGMENTS
Yours directors take this opportunity to thank the financial
Institutions, Banks, regulatory authorities, stock exchanges and the
stakeholders for their continued co-operation and support.
Your Directors also wish to record their appreciation for the continued
co-operation and support received from the customers, vendors,
employees of the company at various levels.
For and on behalf of the Board
Place: Hyderabad D.S.Chandra Mohan Reddy
Date : 14.08.2010 Chairman & Managing Director
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