Mar 31, 2015
Dear Members,
Your Directors have pleasure in presenting their 21st Annual Report on
the business and operations of the Company together with the Audited
Statement of Accounts of Rainbow Foundations Limited ( the Company )
for the year ended March 31,2015.
1. FINANCIAL RESULTS (Rs. in Lakhs)
Standalone
Particulars
31/03/2015 31/03/2014
Total Income 3231.21 1596.89
Profit/(loss) before Interest,
Depreciation & Tax (EBITDA) 558.87 391.85
Finance Charges 458.21 260.29
Depreciation 3.79 6.34
Provision for Income Tax 31.43 41.44
Net Profit/(Loss) After Tax 61.48 83.87
Profit/(Loss) brought forward
from previous year - -
Profit/(Loss) carried to Balance Sheet 61.48 83.87
2. FINANCIAL PERFORMANCE OF THE COMPANY
During the year under review, the Company s Profit before Interest,
Depreciation & Tax increased to Rs. 558.87 Lakhs as compared to Rs.
391.85 Lakhs in the previous year. The Company earned a net profit of
Rs. 61.48 Lakh in the Current Financial Year as against a net profit of
Rs. 83.87 Lakh in the previous year. The increase in net profit is on
account of increased revenue and marginal reduction of project
expenditure. Your directors are expecting to provide a better
performance in the forthcoming years.
3. CHANGE IN NATURE OF BUSINESS, IF ANY
Our Company has not deviated its line of business activity nor has
expanded the area of activities; therefore, there is no change in the
nature of business for the year under review.
4. DIVIDEND
In order to conserve the resources of your Company, the Board of
Directors of do not recommend any dividend for the financial
year 2014-15.
5. TRANSFER TO RESERVES
The Company has not transferred any amount to reserves for the
financial year 2014-15.
6. SHARE CAPITAL
The Board of Directors of the Company has not issued any shares during
the year.
Present Capital structure of the Company is as follows.
As at March 31, 2015 As at March 31, 2015
Particulars
Number Amount Number Amount
Share Capital
Authorised
Capital
Equity shares of
INR 10 each 1,20,00,000 120,000,000 1,20,00,000 120,000,000
Issued, Subscribed
and fully paid up
share capital
Equity snares of
INR 10 each 55,13,100 55,131,000 55,13,100 55,131,000
7. SUBSIDIARIES, ASSOCIATES AND JOINT VENTURES
The Company has no subsidiaries, associate and joint ventures,
therefore, disclosing the names of the respective entities does not
arise.
8. MATERIAL CHANGES & COMMITMENTS AFFECTING FINANCIAL POSITION OF THE
COMPANY, OCCURRING AFTER BALANCE SHEET DATE
There are no material changes or commitments likely to affect the
financial position of the Company which is having an impact on the
functioning and working of the Company. The operations of the Company
have been effectively being managed and the Management shall review the
performance from time to time in order to monitor the business
activities of the Company.
9. PARTICULARS OF LOANS, INVESTMENTS AND GUARANTEES UNDER SECTION 186
OF THE COMPANIES ACT, 2013
There were no loans, guarantees and investments under Section 1 86 of
the Companies Act, 2013 during the year 2014-15.
10. PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES TO
REFERRED TO IN SUB SECTION (1) OF SECTION 188 OF THE COMPANIES ACT,
2013
During the year under review, the Company has not entered into any
contracts or arrangements with its related parties.
11. DEPOSITS
The Company has not accepted any deposits either from the shareholders
or public within the meaning of the Companies (Acceptance of Deposits)
Rules, 2014. No amounts on account of principal or interest on deposits
from public was outstanding as on 31st March, 2015.
12. STATUTORY AUDITORS
The Auditors of your Company, M/s. Jain Bafna & Co., Chartered
Accountants, having Firm Registration Number 010657S, hold office until
the conclusion of the Twenty first Annual General Meeting and, being
eligible, offer themselves for re-appointment as the Auditors of your
Company for the financial year 2015-16. The Company has received the
consent from the Auditors for their appointment for the respective
year.
The Auditor s report on the financial statements for the year 2014-15
does not contain any qualification, reservation or adverse remark.
13. COST AUDITORS.
Cost Audit is not applicable to the Company. The Central government has
not specified maintenance of cost records for the Company under sub Â
section (1) of section 148 of the Companies act 2013. Therefore, there
is no requirement for appointment of Cost Auditors.
14. SECRETARIAL AUDIT REPORT
Pursuant to provisions of Section 204 of the Companies act, 2013 and
the Companies (Appointment and Remuneration of Managerial Personnel)
Rules, 2014, the Company has appointed M/S. JM & Associates, a firm of
Company Secretaries in practice to undertake the Secretarial Audit of
the Company for the financial year 2014" 15.The report of Secretarial
Audit is annexed herewith in Form MR - 3 as annexure.
15. DIRECTORS' RESPONSIBILITY STATEMENT
Pursuant to Section 134(5) of the Companies act, 2013, the Board of
Director s to the best of their knowledge and ability, 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. Had selected such accounting policies and applied them consistently
and made judgments and estimates that are reasonable and prudent so as
to give a true and fair view of the state of affairs of the company at
the end of the financial year and of the profit and loss of the company
for that period,
iii. 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. Had prepared the annual accounts on a going concern basis, and
v. Had laid down internal financial controls to be followed by the
company and that such internal financial controls are adequate and were
operating effectively.
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.
16. COMPOSITION OF BOARD
The Composition of Board is governed by the applicable laws and
regulations and Articles of Association of th e Co m pany.
The Board consists of persons of professional expertise and experience
in technical, financial and operational segments who provide leadership
and guidance to the management. The Present constitution of the Board
of Directors of the Company consists of the following members.
No. of Director No. of
Name of Director Category of -ships in Equity
Director other bodies Shares held
corporate
Mr. Anopchand Jain P/MD 1 1,76,883
Mr. Gajraj Jain P/JMD NIL 2,00,000
Mr. Mukesh Kumar M. Mehta I/NED NIL 631
Mr. PM.Mothiram I/NED NIL NIL
Mr. Sampatraj Singhvi I/NED NIL 27
Ms. Lakshmi Sreedhar I/NED NIL NIL
P Promoter MD Managing Director
ED Executive Director NED Non"Executive Director
I Independent - -
The Directorships held by the Directors as mentioned above do not
include Alternate Directorships and Directorships held in Foreign
Companies, Companies registered under Section 8 of the Companies Act,
2013 and Private Limited Companies.
17. DIRECTORS AND KEY MANAGERIAL PERSONNEL
P ursuant to Section 149(10) of the Companies Act, 2013, read along
with Rules framed thereunder, the Members had at the Annual General
Meeting of the Company held on September 29, 2014, approved the change
in designation of Mr. Mukesh Kumar Manilal Mehta, Mr. PM. Mothiram and
Mr. Sampat Raj Singhvi as Independent Directors for a term of five
years. All the Independent Directors have given declarations that they
meet the criteria of independence as provided in Section 149(6) of the
Companies Act, 2013 and Clause 49 of the Listing Agreement. In the
opinion of the Board, they fulfill the conditions of independence as
specified in the Act and the rules made thereunder and they are
independent of the management.
During the last Annual General Meeting held on September 29, 2014, Mr.
Anopchand Jain was re-appointed as the Managing Director of the Company
for a term of five years commencing from June 7, 2014 upto June 6,
2019.
Also, during the year under review Mr. Gajraj Jain has been
re-appointed as the Joint Managing Director for a period of five years
commencing from January 1, 2015 and is paid remuneration as per the
terms of his employment.
Mr. Anopchand Jain retire by rotation at the forthcoming Annual General
Meeting and being eligible, offers himself for re-election. Brief
particulars and expertise about him has been given in the annexure to
the Notice of the Annual General Meeting in accordance with the
requirements of listing agreement with the Stock Exchange.
In order to comply with Section 149 of the Companies Act, 2013, the
Company had appointed Ms. Lakshmi Sreedhar as the Woman director of the
Company vide Board Meeting dated March 23, 2015.
18. POLICY ON APPOINTMENT OF DIRECTORS AND CRITERIA FOR DETERMINING
QUALIFICATIONS, POSITIVE ATTRIBUTES AND INDEPENDENCE OF A DIRECTOR
The Nomination and Remuneration committee is responsible for developing
competency requirements for the Board and in this regard conducts a gap
analysis to determine the Board composition on a periodic basis
including each time a Director appointment or reappointment is
required. The committee has framed a policy to determine th e
qualifications, po sitive attri bute s and independence of a Director.
The key feature s of th e policy are.
* Qualifications - The Board nomination process encourages diversity of
thought, experience, knowledge, age and gender. It also ensures that
the Board has an appropriate blend of functional and industry
expertise.
* Positive attributes  Apart from the duties of Directors as
prescribed in the Companies act, 2013, the Directors are expected to
demonstrate high standards of ethical behavior, communication skills
and independent judgement.
* Independence  A Director wwill be considered independent if he/she
meet the criteria laid down in
Section 149(6) of the Companies act, 2013 and clause 49 of the listing
agreement.
19. EVALUATION OF THE BOARD'S PERFORMANCE
In accordance with the provisions of the Companies Act, 2013 and
Corporate Governance requirements as prescribed by SEBI under Clause
49of the Equity Listing Agreement, the Board along with the Nomination
& Remuneration Committee have carried out an annual evaluation of its
own performance and that of its committees and individual Directors.
The Independent Directors evaluated the performance of the individual
Directors on the basis of various criteria included attendance &
participation in Board Meeting, engagement with the management in
decision making, understanding about the company s business and its
affecting industries.
The criteria for performance evaluation of Board included the aspects
such as composition of Board and its structure, roles and
responsibilities under various provisions of the Companies Act, 2013
etc. The criteria for performance evaluation of Committees of the Board
included the aspects like composition of Committees, effectiveness of
Committee meetings etc.
20. COMMITTEES OF BOARD
During the financial year 2014 -15, the Board constituted some of its
Committees, in accordance with the Companies Act, 2013. There are
currently three Committees of the Board, as follows:
i. Audit Committee
ii. Nomination and Remuneration Committee
iii. Stakeholders Relationship Committee
Details of all the Committees along with their charters, composition
and meetings held during the year, are provided in the Report on
Corporate Governance .
21. BOARD MEETINGS
The Board of Directors met 8 (Eight) times during the year financial
year 2014-15.
Details of the composition of the Board and its committees and of the
meetings held, attendance of the Directors at such meetings and other
relevant details are provided in the Corporate Governance Report. The
intervening gap between the meetings was within the period prescribed
under the Companies Act, 2013.
During the year under review, the Board has accepted all
recommendations of the Audit Committee.
22. VIGIL MECHANISM
The Company has adopted a Whistle blower policy establishing vigil
mechanism, to provide a formal mechanism to the directors and employees
to report their concerns about unethical behaviour, actual or suspected
fraud or violation of the Company s code of conduct or ethics policy.
The policy provides for adequate safeguards against victimization of
employees who avail of the mechanism and also provide for direct access
to the Chairman of the Audit Committee. It has affirmed that no
personnel of the Company has been denied access to the Audit Committee.
23. EXTRACT OF ANNUAL RETURN
Pursuant to section 92(3) of the Companies Act, 2013 ( the Act ) and
rule 12(1) of the Companies (Management and Administration) Rules,
2014, extract of annual return in Form MGT 9 is enclosed as Annexure.
24. ENERGY, TECHNOLOGY AND FOREIGN EXCHANGE
A) Conservation of energy, technology absorption
The particulars as required under the provisions of Section 134(3) (m)
of the Companies Act, 2013 read with Rule 8 of the Companies (Accounts)
Rules, 2014 in respect of conservation of energy and technology
absorption have not been furnished considering the nature of activities
undertaken by the Company during the year under review
B) F oreign Exchange Earnings and Outgo:
PARTICULARS 2015 (in inr) 2014 (in inr)
Earnings Nil Nil
Outgo Nil Nil
25. REVIEW OF RISK MANAGEMENT POLICY ADOPTED BY THE COMPANY
The Company in order to comply the provisions of the Companies Act,
2013 and provide an effective mechanism for implementing risk
management system had adopted the policy on risk management for
evaluating and monitoring various risks that could threaten the
existence of the Company. The Company had not faced any major risks and
no major deviations from the actuals as attained by the Company. The
Audit committee has to review the policy periodically. The Board takes
overall responsibility for the overall process of risk management in
the organisation.
The Board shall take note of any future threats and shall report to the
Company for formulating an effective mechanism and strategy.
26. MATERIAL ORDERS PASSED BY THE REGULATORS, COURTS, TRIBUNALS
There are no significant material orders passed by the Regulators or
Courts or Tribunals which would have impact on the going concern status
of the Company and its future operation.
27. ADEQUACY OF INTERNAL FINANCIAL CONTROLS WITH REFERENCE TO
FINANCIAL STATEMENTS
The Company has an adequate system of internal controls in place. it
has documented policies and procedures covering all financial and
operating functions. These controls have been designed to provide a
reasonable assurance with regard to maintaining of proper accounting
controls for ensuring reliability of financial reporting, monitoring of
operations, protecting assets from unauthorised use or losses,
compliances with regulations. The Company has continued its efforts to
align all its processes and controls with global best practices.
28. PREVENTION OF SEXUAL HARASSMENT
The Disclosure under the Sexual Harassment of Women at Workplace
(Prevention, Prohibition and Redressal) Act, 2013 is applicable to your
Company.
Your Company has in place an Anti Sexual Harassment Policy in line with
the requirements of the Sexual Harassment of Women at the Workplace
(Prevention, Prohibition & Redressal) Act, 201 3 to prevent sexual
harassment at work place. All employees (perma nent, contractual, te m
porary, trainee s) are covere d under thi s policy.
During the year under review, the Company has not received any
complaints from the employees with regard to Sexual Harassment.
29. REPORT ON CORPORATE GOVERNANCE
A separate section on Corporate Governance forming part of the
Directors Report and the Certificate from the Practicing Company
Secretary confirming compliance of Corporate Governance norms as
stipulated in Clause 49 of the listing agreement with the Bombay Stock
Exchange is included in the Annual Report.
30. MANAGEMENT DISCUSSION AND ANALYSIS REPORT
The management discussion and analysis of the financial conditions
including the result of the operations of the company for the year
under review as required under clause 49 of the Listing Agreement is
given as a separate statement in the Annual Report.
31. REMUNERATION POLICY:
The Nomination and Remuneration Committee (NRC) has formulated a policy
relating to the remuneration of the directors, key managerial personnel
and other employees. The philosophy for remuneration is based on the
commitment of fostering a culture of leadership with trust. The
remuneration policy has been prepared pursuant to the provisions of
Section 178(3) of the Companies act, 2013 and Clause 49 of the listing
agreement. While formulating this policy, the committee has considered
the factors laid down in Section 178(4) of the Companies Act, 2013,
which are us under:
* That the level and composition of remuneration is reasonable and
sufficient to attract, retain and motivate directors of the quality
required to run the Company successfully;
* Relationship of remuneration to performance is clear and meets
appropriate performance benchmarks;
* Remuneration to directors, key managerial personnel and senior
management involves a balance between fixed and incentive pay
reflecting short and long term performance objectives appropriate to
the working of the Company and its goals.
The key principles governing the remuneration policy are as follows:
* Market Competitiveness
* Role played by the individual
* Reflective of size of the company, complexity of the
sector/industry/Company s operations and the Company s capacity to pay
* Consistent with recognised best practices and
* Aligned to any regulatory requirements.
In accordance with the policy, the Managing/Executive/KMPs/ employees
are paid basic/fixed salary.
The non-executive Directors, including Independent directors are paid
sitting fees for attending the meetings of the Board and committees of
the Board.
The NRC is responsible for recommending the remuneration policy to the
Board. The Board is responsible for approving and overseeing
implementation of the remuneration policy.
The information required under Section 197 of the Companies act, 2013
read with rule 5(1) of the Companies (Appointment and remuneration of
Managerial Personnel) Rules, 2014 has been attached as annexure.
32. COMMENTS ON QUALIFICATIONS MADE IN SECRETARIAL AUDIT REPORT
The Following qualifications were made in the secretarial audit report,
1. Non appointment of CFO
2. Non appointment of Internal Auditor
Board s reply,
1. The Co m pany is in process of recruiting right candid ate as CF O
to adhere due co m pliance under the Act.
2. The Company is under process to appoint Internal Auditors to
conduct internal audit of the functions and activities of the Company.
33. DETAILS OF EMPLOYEES DRAWING SALARY ABOVE PRESCRIBED LIMITS
There are no employees who are paid remuneration in excess of the
limits specified under Section 197 of the Companies Act, 2013 read with
Companies (Appointment and Remuneration) Rules, 2014 as amended from
time to time.
34. ACKNOWLEDGEMENTS
Your Director s wish to convey their appreciation to all of the Company
s employees for their enormous personal efforts as well as their
collective contribution to the Company s performance. The Director s
would also like to thank the employees, shareholders, customers,
dealers, suppliers, bankers, Government and all other business
associates for the continuous support given by them to the Company and
their confidence in its management.
FOR AND ON BEHALF OF THE BOARD
Sd/- Sd/-
Managing Director Whole Time Director
Place . Chennai
Date . 14.08.2015
Mar 31, 2014
Dear members,
The Directors are pleased to present their Twentieth
Annual Report on the business and operations of the Company together
with the Audited Financial Statements for the financial year ended on
31st March, 2014
1. FINANCIAL RESULTS
Amount Amount
(Rupees in Lakhs) (Rupees in Lakhs)
PARTICULARS
Year Ended Year Ended
31.03.2014 31.03.2013
Income from operation 1456.59 1401.31
Profit before Interest & 391.84 233.84
Depreciation
Interest 260.29 150.01
Depreciation 6.34 7.93
Profit before tax 125.21 75.89
Provision for Taxation 41.44 26.02
Net Profit (After tax) 83.87 50.21
2. PERFORMANCE REVIEW
The Company''s Profit before Interest & Depreciation increased to Rs.
125.21 Lakhs during the current financial year, as compared to Rs.
75.89 Lakhs in the previous year. The Company earned a net profit of
Rs.83.87 Lakh in the Current Financial Year as against a net profit of
Rs. 50.21 Lakh in the previous year. The increase in net profit is on
account of increased revenue and marginal reduction of project
expenditure. Your directors are expecting to provide a better
performance in the forthcoming years.
3. DIVIDEND
In order to conserve the resources of your Company, the Board of
Directors of your Company do not recommend any dividend for the
financial year 2013-14.
4. DEPOSITS
During the financial year under review your Company has not accepted or
invited any fixed deposit, in terms of section 58A of the Companies
Act, 1956, from the public and is therefore not required to furnish
information in respect of outstanding deposits under the Non-Banking
Financial Companies Acceptance of Public Deposits (Reserve Bank)
Directions, 1998.
5. INSURANCE
All the insurable interests of your Company including inventories,
buildings, plant and machinery are adequately insured.
6. FOREIGN EXCHANGE EARNINGS AND OUTGO
During the year there were no foreign exchange earnings or outgo for
the Company.
7. DIRECTOR
The Company was in receipt of written representations from the
Directors of the Company that they were not disqualified pursuant to
Section 164 of the Companies Act, 2013.
Mr. G.R Jain (holding DIN 01182117), Director retire by rotation and
being eligible, offers himself for reappointment. Mr. P.M. Mothiram
(DIN 00232291) , Mr. Sampatraj Singhvi (holding DIN 01786782) and Mr.
Mukesh Kumar M.Mehta (holding DIN 01165166) shall retire at the
ensuring Annual General meeting and being eligible offer themselves for
re-appointment for a further term of five years in order to comply with
the provisions of sec.149 of the Companies Act 2013. Members are
requested to re-appoint the retiring Directors.
A brief resume, expertise, shareholding in your Company and details of
other directorship of Mr. G.R Jain, Mr. P.M Mothiram, Mr. Sampat Raj
Singhvi and Mr. Mukesh M. Mehta forms part of the Notes to the Notice
of Annual General Meeting.
8. AUDITORS & AUDITOR''S REPORT
M/s. Jain Bafna and Co., Chartered Accountants Chennai, retire at the
ensuing Annual General Meeting and being eligible offer themselves for
re-appointment. The Company has received a certificate from the
Auditors to the effect that their reappointment, if made, would be in
accordance with the limits specified under Section 141(3)(g) of the
Companies Act, 2013. The Audit Committee of the Board recommended their
re-appointment for the year 2014-2015. The necessary resolution is
being placed before the Shareholders for their approval.
The Board has duly examined the Auditors Report and the clarifications,
wherever necessary have been included in the notes to accounts. Further
there are no qualifications as such, reported in the Auditors Report.
The Company has adopted adequate checks and internal controls as a part
of their internal audit system. Each project, its developmental
activities and expenditure are under the direct supervision of Managing
or Joint Managing Director(s) of the Company. The statutory auditors
are in practice to verify all the records and transactions of the
Company.
The Notes to Accounts referred to in the Auditors Report are self-
explanatory and, therefore, do not call for any further explanation.
9. LISTING:
The equity shares of the Company are listed with Bombay Stock Exchange
Limited (BSE), Mumbai and Madras Stock Exchange Limited (MSE), Chennai.
The listing fees payable to both the exchanges for the financial year
have been paid.
10. DIRECTORS'' RESPONSIBILITY STATEMENT
The Director''s Responsibility Statement, setting out compliance with
the accounting and financial reporting requirements specified under
Section 217(2AA) of the Companies Act, 1956, in respect of the
financial statements, is furnished below and on behalf of the Board of
Directors, it is hereby confirmed that:
a. In the preparation of the Annual Accounts, the applicable Accounting
Standards has been followed along with proper explanation relating to
material departures;
b. They have selected such accounting policies in consultation with the
Auditors and have applied them consistently and made judgments,
estimates that are reasonable and prudent so as to give a true and fair
view of the state of affairs of the Company at the end of the financial
year and of the profit of the Company for that period;
c. They have taken proper and sufficient care, to the best of their
knowledge and ability, 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;
d. They have prepared the annual accounts on a going concern basis.
11. MANAGEMENT DISCUSSION AND ANALYSIS:
The management discussion and analysis of financial condition including
the operations of the company for the Financial Year under review as
required under clause 49 of the listing agreement with the stock
exchange, is given as a separate statement in the Annual Report.
12. CORPORATE GOVERNANCE:
Your directors are happy to report that your Company is complying with
the Code of Corporate Governance introduced by SEBI as incorporated in
Clause 49 of the Listing Agreement with the Stock Exchange. A detailed
report on Corporate Governance together with a certificate from the
Statutory Auditors in compliance of Clause 49 of the Listing Agreement
is attached which forms part of the Directors'' Report.
13. CODE OF CONDUCT
Particulars of Employees pursuant to Section 217(2A) of the Companies
Act, 1956 are not applicable since none of the employees of the Company
are in receipt of remuneration in excess of the limits specified
therein during the Current Financial Year under review.
14. PERSONNEL:
Particulars of Employees pursuant to Section 217(2A) of the Companies
Act, 1956 are not applicable since none of the employees of the Company
are in receipt of remuneration in excess of the limits specified
therein during the Current Financial Year under review.
15. INFORMATION AS PER SECTION 217(1) (e) OF THE COMPANIES ACT, 1956:
The Company does not carry on any manufacturing activity and
accordingly the provision to furnish information as per Section 217
(1)(e) of the Companies Act, 1956 relating to Conservation of Energy,
Research and Development and Technology Absorption is not applicable.
16. ACKNOWLEDGEMENTS:
The Directors would like to place on record their sincere appreciation
to the Company''s Shareholders, Customers, Business Partners, Vendors,
Bankers, Financial Institutions and Academic Institutions for their
continued support to the Company during the year. The Directors also
wish to place on record their appreciation for the contribution made by
employees at all levels for sustaining the organizational growth
especially during the challenging times.
We thank the Government of India, state governments and other
government agencies for their assistance and cooperation and look
forward to their continued support in future. Finally, the Board
expresses its gratitude to the members for their continued trust,
cooperation and support.
For and on behalf of the Board of Directors
A.C. JAIN G.R.JAIN
Place: Chennai-17 Managing Director Joint Managing Director
Date: 14th August, 2014 DIN : 02215110 DIN : 01182117
Mar 31, 2013
To the Members,
The Directors are pleased to present their Nineteenth Annual Report on
the business and operations of the Company together with the Audited
Financial Statements for the financial year ended on 31st March, 2013.
1. FINANCIAL RESULTS
Amount Amount
Rupees in Lakhs)
PARTICULARS Year Ended Year Ended
31.03.2013 31.03.2012
Income from operation 1401.31 1319.40
Profit before Interest & Depreciation 233.84 223*0
Interest 150.01 163.16
Depreciation 7.94 1033
Profit before tax 75.89 5032
Provision for Taxation 26.02 17.66
Net Profit (After tax) 50.21 3438
2. PERFORMANCE REVIEW
The Company''s Profit before Interest & Depreciation increased to
Rs.233.84 Lakhs during the current financial year, as compared to
Rs.223.80 Lakhs in the previous year. The Company earned a net profit
of Rs.50.21 Lakh in the Current Financial Year as against a net profit
of Rs.34.68 Lakh in the previous year. The increase in net profit is on
account of increased revenue and marginal reduction of project
expenditure. Your directors are expecting to provide a better
performance in the forthcoming years.
3. DIVIDEND
In order to conserve the resources of your Company, the Board of
Directors of your Company do not recommend any dividend for the
financial year 2012-13.
4. DEPOSITS
During the financial year under review your Company has not accepted or
invited any fixed deposit, in terms of section 58A of the Companies
Act, 1956, from the public and is therefore not required to furnish
information in respect of outstanding deposits under the Non-Banking
Financial Companies Acceptance of Public Deposits (Reserve Bank)
Directions, 1998.
5. INSURANCE
All the insurable interests of your Company including inventories,
buildings, plant and machinery are adequately insured.
6. FOREIGN EXCHANGE EARNINGS AND OUTGO
During the year there were no foreign exchange earnings or outgo for
the Company.
7. DIRECTOR
The Company was in receipt of written representations from the
Directors of the Company that they were not disqualified pursuant to
section 274 (1) (g) of the Companies Act, 1956.
M r. Sampatraj Singhvi, Director retires by rotation and being
eligible, offers himself for reappointment. Members are requested to
re-appoint the retiring Director.
A brief resume, expertise, shareholding in your Company and details of
other directorship of M r. Sampatraj Singhvi is given in the Corporate
Governance report.
8. AUDITORS & AUDITOR''S REPORT
M/s. Jain Bafna and Co., Chartered Accountants Chennai, retire at the
ensuing Annual General Meeting and being eligible offer themselves for
re-appointment. The Company has received a certificate from the
Auditors to the effect that their re-appointment, if made, would be in
accordance with the limits specified under Section 224(1B) of the
Companies Act, 1956. The Audit Committee of the Board recommended their
re-appointment for the year 2013-2014. The necessary resolution is
being placed before the Shareholders for their approval.
The Board has duly examined the Auditors Report and the clarifications,
wherever necessary have been included in the notes to accounts. Further
there are no qualifications as such, reported in the Auditors Report.
The Company has adopted adequate checks and internal controls as a part
of their internal audit system. Each project, its developmental
activities and expenditure are under the direct supervision of Managing
or Joint Managing Director(s) of the Company. The statutory auditors
are in practice to verify all the records and transactions of the
Company.
The Notes to Accounts referred to in the Auditors Report are self-
explanatory and, therefore, do not call for any further explanation.
9. LISTING:
The equity shares of the Company are listed with Bombay Stock Exchange
Limited (BSE), Mumbai and Madras Stock Exchange Limited (MSE), Chennai.
The listing fees payable to both the exchanges for the financial year
have been paid.
10. DIRECTORS'' RESPONSIBILITY STATEMENT
The Director''s Responsibility Statement, setting out compliance with
the accounting and financial reporting requirements specified under
Section 217(2AA) of the Companies Act, 1956, in respect of the
financial statements, is furnished below and on behalf of the Board of
Directors, it is hereby confirmed that:
a. In the preparation of the Annual Accounts, the applicable
Accounting Standards has been followed along with proper explanation
relating to material departures;
b. They have selected such accounting policies in consultation with
the Auditors and have applied them consistently and made judgments,
estimates that are reasonable and prudent so as to give a true and fair
view of the state of affairs of the Company at the end of the financial
year and of the profit of the Company for that period;
c. They have taken proper and sufficient care, to the best of their
knowledge and ability, 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;
d. They have prepared the annual accounts on a going concern basis.
11. MANAGEMENT DISCUSSION AND ANALYSIS:
The management discussion and analysis of financial condition including
the operations of the company for the Financial Year under review as
required under clause 49 of the listing agreement with the stock
exchange, is given as a separate statement in the Annual Report.
12. CORPORATE GOVERNANCE:
Your directors are happy to report that your Company is complying with
the Code of Corporate Governance introduced by SEBI as incorporated in
Clause 49 of the Listing Agreement with the Stock Exchange. A detailed
report on Corporate Governance together with a certificate from the
Statutory Auditors in compliance of Clause 49 of the Listing Agreement
is attached which forms part of the Directors'' Report.
13. CODE OF CONDUCT
Pursuant to Clause 49 of the Listing Agreement, the declaration signed
by the Joint Managing Director affirming compliance of the Code of
Conduct by the Directors and senior management personnel of the Company
for the financial year 2012-13 is annexed and forms part of the
Directors'' and Corporate Governance Report.
14. PERSONNEL:
Particulars of Employees pursuant to Section 217(2A) of the Companies
Act, 1956 are not applicable since none of the employees of the Company
are in receipt of remuneration in excess of the limits specified
therein during the Current Financial Year under review.
15. INFORMATION AS PER SECTION 217(1) (e) OF THE COMPANIES ACT, 1956:
The Company does not carry on any manufacturing activity and
accordingly the provision to furnish information as per Section 217
(1)(e) of the Companies Act, 1956 relating to Conservation of Energy,
Research and Development and Technology Absorption is not applicable.
16. ACKNOWLEDGMENTS:
The Directors would like to place on record their sincere appreciation
to the Company''s Shareholders, Customers, Business Partners, Vendors,
Bankers and Financial Institutions for their continued support to the
Company during the year. The Directors also wish to place on record
their appreciation for the contribution made by employees at all levels
for sustaining the organizational growth especially during the
challenging times.
We thank the Government of India, state governments and other
government agencies for their assistance and cooperation and look
forward to their continued support in future. Finally, the Board
expresses its gratitude to the members for their continued trust,
cooperation and support.
For and on behalf of the Board of Directors
A.C. JAIN G.R.JAIN
Managing Director Joint Managing Director
Place: Chennai-17
Date: 29th August 2013
Mar 31, 2011
To the Members,
The Directors are pleased to present their Seventeenth Annual Report on
the business and operations of the Company and the statements of
account for the year ended 31st March, 2011.
FINANCIAL RESULTS:
The financial results of the Company for the year ended March 31, 2011
are presented below:
(Rupees in Lakhs)
Year Ende Year Ended
31.03.2011 31.03.2011
Net Sales 799.87 860.01
Other Income 1.23 6.86
Gross Profit before Interest 260.30 135.74
& Depreciation
Interest 121.53 64.66
Depreciation 9.91 6.48
Proft before tax 65.52 14.58
Provision for Taxation 24.04 3.85
Net Profit (After tax) 46.44 7.81
DIVIDEND
The real estate business is known to be of highly capital intensive and
long gestation period. We believe that there are tremendous growth
opportunities and your Company would like to capitalize on these by
continuing to invest, which we believe will further enhance the
shareholder's value. Hence your directors regret their inability to
recommend any dividend on Equity shares.
DEPOSITS
Your Company has not accepted or invited any fixed deposits in terms of
section 58A of the Companies Act,1956, from the public and is therefore
not required to furnish information in respect of outstanding deposits
under the Non-Banking Non-Financial Companies (Reserve Bank)
Directions, 1996 and Companies (Acceptance of Deposits) Rules, 1975.
DIRECTORS
The Company was in receipt of written representations from the
Directors of the Company that they were not disqualifed pursuant to
section 274 (1) (g) of the Companies Act 1956.
Mr. G.R. Jain and Mr. P.M. Mothiram, Directors retire by rotation and,
being eligible, offer themselves for reappointment. Members are
requested to re-appoint the retiring Directors.
A brief resume, expertise, shareholding in your Company and details of
other directorships of Mr. G.R. Jain and Mr. P.M. Mothiram are given in
the Corporate Governance report.
SHARE CAPITAL
Your Company has increased its authorised share capital from Rs.
70,000,000/- (Rupees Seven Crore Only) divided into 7,000,000 (Seventy
Lakhs) equity shares of Rs. 10/- (Rupees Ten Only) each to Rs.
120,000,000/- (Rupees Twelve Crore Only) divided into 12,000,000 (One
Crore and Twenty Lakhs) equity shares of Rs 10/- (Rupees Ten only) each
by further creation of 50,00,000 (Fifty Lakhs Only) equity shares of
Rs.10/- (Rupees Ten only) with the consent of the shareholders vide
Extra- Ordinary General Meeting dated 20th of January 2011 and complied
with the provisions thereto.
Further the Company has got the approval from its shareholders, vide
Extra- Ordinary General Meeting dated 20th of January 2011, for further
issue of shares from the unissued part of the increased authorized
capital of the company on right basis for an aggregate amount of Rs.
55,131,000 (Rupees Five Crores Fifty one lakh thirty One thousand only)
and the said Rights Equity Shares rank pari passu in all respects with
the existing Equity Shares issued by the Company.
DIRECTORS' RESPONSIBILITY STATEMENT
The Director's Responsibility Statement, setting out compliance with
the accounting and financial reporting requirements specified under
Section 217(2AA) of the Companies Act, 1956, in respect of the
financial statements, is furnished below and on behalf of the Board of
Directors, 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) they have, in selection of the accounting policies, consulted the
Auditors and have applied them consistently and made judgments and
estimates that are reasonable and prudent so as to give a true and fair
view of the state of affairs of the Company at the end of the financial
year and of the profit of the Company for that period;
c) they have taken proper and suffcient care to the best of their
knowledge and ability 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;
d) they have prepared the annual accounts on a going concern basis.
AUDITORS & AUDITORS' REPORT
M/s. Jain Bafna and Co., Chartered Accountants Chennai, retires and is
eligible for re-appointment. The Company has received a certifcate from
the Auditors to the effect that their re-appointment, if made, would be
in accordance with the limits specified under Section 224(1B) of the
Companies Act, 1956. The Board recommends their re-appointment.
The Board has duly examined the Auditors Report and the clarifcations,
wherever necessary have been included in the notes to accounts. Further
no qualifications are reported in the Auditors Report. The Company has
adopted adequate checks and internal controls as a part of internal
audit system as a part of business. Each project, its developmental
activities and expenditure are under the direct supervision of Managing
or Joint Managing Director(s) of the Company. The statutory auditors
are in practice to verify all the records and transactions of the
Company.
The Notes on Accounts referred to in the Auditors Report are self-
explanatory and, therefore, do not call for any further explanation.
INFORMATION AS PER SECTION 217(1) (e) OF THE COMPANIES ACT, 1956:
The Company does not carry on any manufacturing activity and
accordingly the provision to furnish information as per Section 217
(1)(e) of the Companies Act, 1956 relating to Conservation of Energy,
Research and Development and Technology Absorption is not applicable.
During the year there were no foreign Exchange earnings or outgo for
the Company.
LISTING:
The equity shares of the Company are listed with the Bombay Stock
Exchange Limited (BSE) Mumbai and the Madras Stock Exchange Limited
(MSE) Chennai. The listing fees payable to both the exchanges for the
fnancial year have been paid.
MANAGEMENT DISCUSSION AND ANALYSIS
The management discussion and analysis of financial condition including
the result of the operations of the company for the year under review
as required under Clause 49 of the Listing Agreement with the stock
exchange, is given as a separate statement in the Annual Report.
CORPORATE GOVERNANCE
To comply with the conditions of Corporate Governance, pursuant to
Clause 49 of the Listing Agreements with the Stock Exchanges, a
Management Discussion and Analysis Statement, Report on Corporate
Governance and a Certificate from the Practising Company Secretary are
included in the Annual Report.
CODE OF CONDUCT
Pursuant to Clause 49 of the Listing Agreement, a declaration signed by
the Joint Managing Director affirming compliance of the Code of Conduct
by the Directors and senior management personnel of the Company for the
financial year 2010-11 is annexed and forms part of the Directors' and
Corporate Governance Report.
PERSONNEL
Particulars of Employees pursuant to Section 217(2A) of the Companies
Act, 1956 are not applicable since none of the employees of the Company
is in receipt of remuneration in excess of the limits specified therein
during the year under review.
ACKNOWLEDGEMENTS
The Directors would like to place on record their sincere appreciation
to the Company's Shareholders, Customers, Business Partners, Vendors,
both international and domestic, Bankers, Financial Institutions and
Academic Institutions for their continued support to the Company during
the year. The Directors also wish to place on record their appreciation
for the contribution made by employees at all levels for sustaining the
organizational growth especially during the challenging times.
We thank the Government of India, State Governments and other
Government agencies for their assistance and cooperation and look
forward to their continued support in future. Finally, the Board
expresses its gratitude to the members for their continued trust,
cooperation and support.
For and on behalf of the Board of Directors
Place : Chennai
Date : 5th September 2011
A.C. JAIN G.R.JAIN
anaging Director Joint Managing Director
Mar 31, 2010
The Directors are pleased to present the 16th Annual Report covering
the operating and fnancial performance of your Company for the year
ended 31st March 2010.
FINANCIAL RESULTS:
The fnancial results of the Company for the year ended March 31, 2010
are presented below:
(Rupees in Lakhs)
Year Ended 31.03.2010 Year Ended 31.03.2009
Net Sales 860.01 817.98
Other Income 6.86 20.15
Gross Proft before
Interest &
Depreciation 135.74 189.14
Interest 64.66 76.77
Depreciation 6.48 4.70
Proft before tax 14.58 60.03
Provision for
Taxation 3.85 20.22
Net Proft (After tax) 7.81 39.81
OVERALL REVIEW
After the unprecedented and dramatic changes in the macro economic
environment during the last fnancial year, there has been signifcant
improvement in the economic situation and general outlook especially
during the later part of the fnancial year under review.
We have successfully overcome the challenges of the economic downturn
through a series of measures like further capital infusion,
monetization of land parcels, product innovation, aggressive marketing
strategy and ensuring better control over costs.
We have shown great strength and resilience in the last 2 years of
extremely challenging business environment. On the basis of learning
from the last couple of years and also based on our eagerness to get
equipped for the potential growth phase in future. During the year
2009-10 your company has made a net proft of Rs.14.58 Lakhs.
DIVIDEND
The real estate business is known to be of highly capital intensive and
long gestation period. We believe that there are tremendous growth
opportunities and your Company would like to capitalize on these by
continuing to invest, which we believe will further enhance the
shareholders value. Hence your directors regret their inability to
recommend any dividend on Equity shares.
DIRECTORS
There are fve directors on the Board of directors your company. The
Company was in receipt of written representations from the Directors of
the Company that they were not disqualifed pursuant sec 274 (1) (g) of
the Companies Act 1956.
Mr. G.R. Jain has been re-appointed for a further period of fve years
w.e.f 01st January 2010. Considering his experience in the feld of real
estate and construction, members are requested to re-appoint him for
further period of fve years.
Mr. Sampat Raj Singhvi Director retires by rotation and, being
eligible, offers himself for reappointment.
Members are requested to re-appoint the retiring Director.
A brief resume, expertise, shareholding in your Company and details of
other directorships of Mr. G.R. Jain and Mr. Sampat Raj Singhvi are
given in the Corporate Governance report.
DIRECTORS RESPONSIBILITY STATEMENT
As required under Section 217 (2AA) of the Companies Act, the Directors
to the best of their knowledge and belief confrm that:
a) in the preparation of the annual accounts, the applicable accounting
standards had been followed along with proper explanation relating to
material departures
b) 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 at the end of the fnancial year and of the proft of the
Company for that period
c) they have taken proper and suffcient 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.
d) they have prepared the annual accounts on a going concern basis.
FIXED DEPOSIT
Your Company has not accepted or invited any fxed deposit from the
public and is therefore not required to furnish information in respect
of outstanding deposits under the Non-Banking Non-Financial Companies
(Reserve Bank) Directions, 1996 and Companies (Acceptance of Deposits)
Rules, 1975.
AUDITORS & AUDITORS REPORT
M/s. Jain Bafna and Co., Chartered Accountants Chennai, retire and are
eligible for re-appointment as auditors. The Company has received a
certifcate from the Auditors to the effect that their reappointment, if
made, would be in accordance with the limits specifed under Section
224(1 B) of the Companies Act, 1956. The Board recommends their
re-appointment.
The Board has duly examined the Auditors Report to accounts and the
clarifcations, wherever necessary, have been included in the notes to
accounts. Further no qualifcations reported in the Auditors Report. The
Company has adopted adequate checks and internal controls as a part of
internal audit system as a part of business. Each of the project, its
developmental activities and expenditure are under the direct
supervision of Managing or Joint Managing Director(s) of the Company.
The statutory auditors are in practice to verify all the records and
transactions of the Company.
The Notes to the Accounts referred to in the Auditors Report are self-
explanatory and, therefore, do not call for any further explanation.
INFORMATION AS PER SECTION 217(1)(e) OF THE COMPANIES ACT, 1956:
The Company does not carry on any manufacturing activity and
accordingly the provision to furnish information as per Section 217
(1)(e) of the Companies Act, 1956 relating to Conservation of Energy,
Research and Development and Technology Absorption is not applicable.
During the year there were no foreign Exchange earnings or outgo for
the Company.
LISTING:
The equity shares of the Company listed with the Bombay Stock Exchange
Limited (BSE) Mumbai and the Madras Stock Exchange Ltd, (MSE) Chennai.
The listing fees payable to both the exchanges for the fnancial year
have been paid.
MANAGEMENT DISCUSSION AND ANALYSIS:
The management discussion and analysis of fnancial condition including
the result operations of the company for the year under review as
required under clause 49 of the listing agreement with the stock
exchange, is given as a separate statement in the Annual Report.
CORPORATE GOVERNANCE:
Corporate Governance Report Pursuant to clause 49 of the Listing
Agreements with the Stock Exchanges, a detailed report on Corporate
Governance is included in the Annual Report. A Certifcate from the
Practising Company Secretary regarding compliance of conditions of
Corporate Governance as stipulated under Clause 49 of the Agreement is
also attached to this report.
PERSONNEL:
Particulars of Employees pursuant to Section 217(2A) of the Companies
Act, 1956 are not applicable since none of the employees of the Company
is in receipt of remuneration in excess of the limits specifed therein
during the year under review.
ACKNOWLEDGEMENTS:
Your Directors wish to express their gratitude for the continuous
assistance and support received from the shareholders, investors,
clients, bankers, regulatory and government authorities, during the
year. Your Directors also wish to place on record their appreciation
for the contributions made by employees at various levels, to the
growth and success of the Company.
By order of the Board
Place : Chennai A.C. JAIN G.R.JAIN
Date : 4th September
2010 Managing Director Joint Managing Director
Disclaimer: This is 3rd Party content/feed, viewers are requested to use their discretion and conduct proper diligence before investing, GoodReturns does not take any liability on the genuineness and correctness of the information in this article