Mar 31, 2018
Dear Members,
The Directors have pleasure in presenting their twelfth Annual Report on the business and operations of the Company together with the Audited Financial Statements for the year ended 31st March, 2018.
FINANCIAL SUMMARY
A summary of Consolidated and Standalone financial results of your Company for the year ended 31st March, 2018 is given below:
(Rs. in Lakhs)
Consolidated Standalone
Particulars |
2017-18 |
2016-17 |
2017-18 |
2016-17 |
Total Income |
3741.57 |
3207.97 |
2357.19 |
1981.73 |
Less: Expenses |
2846.25 |
1820.08 |
2012.86 |
1434.04 |
Profit before interest and depreciation |
895.32 |
1387.89 |
344.33 |
547.69 |
Less: a) Interest |
333.23 |
515.44 |
206.97 |
419.99 |
b) Depreciation & Amortisation |
68.22 |
67.60 |
58.23 |
58.27 |
Profit before taxation |
493.87 |
804.85 |
79.12 |
69.43 |
Less:- Provisions for current tax and deferred tax |
117.33 |
193.13 |
(3.81) |
13.64 |
Profi t After Tax |
376.54 |
611.72 |
82.94 |
55.79 |
Add: Share of Profit/(Loss) in Associates |
0.18 |
21.25 |
â |
â |
Less:- Minority Adjustment |
32.18 |
34.52 |
â |
â |
Profit After Tax after minority adjustments |
344.54 |
598.45 |
82.94 |
55.79 |
Add: Balance brought forward from last year |
5246.67 |
4313.27 |
3036.46 |
2980.67 |
Balance available for appropriations |
5591.21 |
4911.72 |
3119.40 |
3036.46 |
Less: Appropriations a) Provision for proposed dividend on equity shares |
||||
b) Provision for dividend tax |
â |
â |
â |
â |
c) Dividend distribution tax for earlier years |
â |
â |
â |
â |
Balance carried to the Balance Sheet |
5591.21 |
4911.72 |
3119.40 |
3036.46 |
REVIEW OF OPERATION AND STATE OF COMPANY''S AFFAIRS
During the year under review, your Company has executed and handed over possession of Residential/ Commercial projects covering an area of around 55,274.95 square feet. Presently your Company has eleven on-going projects, of which there are six Government Projects, at various stages of planning and development. These include housing projects, integrated townships, shopping malls and commercial complexes.
During the period under review, your Company focused on improving productivity, reducing costs and utilized its cash flows most effectively.
The Company has posted a net profit of Rs 82.94 Lakhs for the year ended 31st March, 2018 against a net profit of Rs. 55.79 Lakhs in the previous year. Total Revenue stands at Rs. 2357.19 Lakhs for the year ended 31st March, 2018 and Rs. 1981.73 Lakhs for the year ended 31st March, 2017.
The consolidated net profit of the Company is Rs. 376.72 Lakhs for the year ended 31st March, 2018 against a net profit of Rs. 633.67 Lakhs in the previous year. Consolidated Revenue stands at Rs. 3741.57 Lakhs for the year ended 31st March, 2018 and Rs. 3207.97 Lakhs for the year ended 31st March, 2017.
DIVIDEND & RESERVES
In order to conserve existing resources and to meet the investment needs of the Company, your Directors do not recommend any dividend for the financial year 2017-18.
The Company does not propose to transfer any amount to its Reserves.
SUBSIDIARIES / JOINT VENTURES / ASSOCIATES
Your Company together with its Subsidiaries and Associate Company are involved in Construction Activities and are also providing rental services. As on March 31, 2018, your Company has ten Subsidiaries and one Associate Company. During the financial year under review none of the Companies have become or ceased to be Subsidiaries or Associate Company. The details of the Subsidiaries and the Associate Company form a part of the extract of Annual Return which is annexed to this report as Annexure- 1.
Pursuant to Regulation 16 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (hereinafter referred to as âthe Listing Regulations â) the Company has formulated a Policy on Material Subsidiary and the same is available on the website of the Company at the link:
http://www.rdbindia.com/pdf/codes%20and%20policies/p olicy on material subsidiary 2015.pdf.
In accordance with Section 129(3) of the Companies Act, 2013 (hereinafter referred to as âthe Actâ), read with the rules framed there under, the Listing Regulations and the Indian Accounting Standards, your Company has prepared Consolidated Financial Statements which includes financial information of all its Subsidiaries and Associate Company.
The statement in Form AOC - 1 containing the salient features of the performance and financial position of each of the Subsidiary & Associate Company is annexed to the financial statements of your Company which forms a part of this Annual Report. Further as per section 136 of the Companies Act, 2013, the audited financial statements, including the consolidated financial statements and related information of the Company and the annual audited accounts of each of the subsidiaries are available at our website at www.rdbindia.com
DIRECTORS'' RESPONSIBILITY STATEMENT
In terms of section 134(3)(c) and section 134(5) of the Act, the Directors to the best of their knowledge hereby state and confirm that:
1. In the preparation of the annual accounts for the year ended 31st March, 2018, the applicable accounting standards have been followed and there are no material departures from the same;
2. The accounting policies have been selected and applied consistently and the judgments and estimates made 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;
3. Proper and sufficient care had been taken 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;
4. The annual accounts have been prepared on a going concern basis;
5. The internal financial controls to be followed by the Company have been laid down and such internal financial controls are adequate and are operating effectively; and
6. Proper systems have been devised to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.
BOARD OF DIRECTORS
The Board comprises of an optimum mix of Executive and Non-Executive Directors including Independent Directors. The Board''s composition and size is in compliance with the provisions of the Act and the Listing Regulations. The details of the Directors of your Company and the remuneration drawn by the Directors are given in the Extract of Annual Return which is annexed to this report as Annexure- 1.
None of the Directors of the Company are disqualified for being appointed as Directors, as specified in section 164(2) of the Companies Act, 2013 and Rule 14(1) of the Companies (Appointment and Qualification of Directors) Rules, 2014.
(a) APPOINTMENT/ RE-APPOINTMENT AND RESIGNATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL
Retirement by Rotation:
In accordance with the Articles of Association of the Company and Section 152 of the Act, Mr. Pradeep Kumar Pugalia (DIN: 00501351) shall retire by rotation at the ensuing Annual General Meeting (âAGMâ) and being eligible offers himself for re-appointment. The Board of Directors recommend his re-appointment. At the ending Annual General Meeting
A brief resume of the Director being reappointed as required under Regulation 36(3) of the Listing Regulations forms a part of the Notice convening the ensuing AGM.
Re-appointment of Independent Directors
Mr. Ravi Prakash Pincha (DIN: 00094695) and Mr. Om Prakash Rathi (DIN: 00278191) were appointed as Independent Directors of the Company for a term of five consecutive years w.e.f. 1st April, 2014 to hold office till 31st March, 2019.
In terms of Section 149(10) and all other applicable provisions of the Act and the Listing Regulations, the Board of Directors of your Company, pursuant to the recommendation of the Nomination and Remuneration Committee and based on the report of performance evaluation, at their meeting held on 27th July, 2018 decided to place the proposal for re-appointment of Independent Directors for a further term of five consecutive years w.e.f. 1st April, 2019 at the ensuing Annual General Meeting, whose period of office shall not be liable to determination by retirement of Directors by rotation.
The Independent Directors have given their consent to be re-appointed and have furnished necessary declarations to the Board of Directors that they meet the criteria of independence as provided under Section 149(6) of the Act and Regulation 16(1)(b) of the Listing Regulations.
Appointment and Resignation
During the year under review, Mr. Mahendra Pratap Singh (DIN: 02028933) has resigned from the post of NonExecutive Independent Director with effect from 13th October, 2017.
Mrs. Madhuri Gulgulia, Company Secretary & Compliance Officer of your Company has tendered her resignation w.e.f. 20th May, 2018. In order to fill up the vacancy created due to her resignation, the Board has appointed Ms. Prachi Todi, an Associate Member of the Institute of Company Secretaries of India, to hold office as the Company Secretary & Compliance Officer of the Company with effect from 6th July, 2018.
(b) STATEMENT ON DECLARATION GIVEN BY INDEPENDENT DIRECTORS UNDER SUB-SECTION (7) OF SECTION 149 OF THE ACT AND REGULATION 16 OF THE LISTING REGULATIONS
The Company has received declarations from all the Independent Directors of the Company confirming that they meet the criteria of independence as laid down in Section 149(6) of the Companies Act, 2013 read with the Rules made there under and Regulation 16 of the Listing Regulations.
(c) FAMILIARIZATION PROGRAMME UNDERTAKEN FOR INDEPENDENT DIRECTORS
The Independent Directors are familiarized with the Company, their roles, rights, responsibilities in the Company, nature of the industry in which the Company operates, business model of the Company, etc in compliance with Regulation 25(7) of the Listing Regulations. The familiarization programs imparted to the Independent Directors during the year with details required as per Regulation 46 of the Listing Regulations is available on the Company''s website at the link:
http://www.rdbindia.com/pdf/codes%20and%20policies/FA MILIARIZATION PROGRAMME.pdf
(d) MEETING OF THE BOARD OF DIRECTORS
The Board met seven times during the year under review on 27th May, 2017; 6th June, 2017; 14th August, 2017; 14th September, 2017; 3rd November, 2017; 14th December, 2017 and 14th February, 2018 in compliance with the Companies Act, 2013 and the Listing Regulations. The intervening gap between the meetings is well within the period prescribed under the Companies Act, 2013. The detailed information of the Meetings of the Board, are given in the Corporate Governance Report, which forms part of this Annual Report.
(e) APPOINTMENT AND REMUNERATION POLICY OF THE COMPANY
The Company''s Policy relating to appointment of Directors, payment of Managerial remuneration, Directors'' qualifications, positive attributes, independence of Directors and other related matters as provided under Section 178(3) of the Companies Act, 2013 is furnished in Annexure - 2 and forms part of this Report. The Nomination and Remuneration Policy of the Company is available on the Company''s website at the link:
http://www.rdbindia.com/pdf/codes%20and%20policies/nomination-remuneration-policy.pdf
(f) FORMAL ANNUAL PERFORMANCE EVALUATION
Pursuant to the provisions of the Act and the Listing Regulations, the Nomination and Remuneration Committee and the Board has carried out the performance evaluation of the Board as a whole, the Directors individually (including Independent Directors) and the working of the Committees of the Board. The evaluation was done on the basis of structured feedback forms which included parameters such as level of engagement and contribution, independence of judgments, maintenance of integrity, confidentiality, etc.
Further, in the separate meeting of Independent Directors held during the year under review, the performance of Non-Independent Directors, performance of the Board as a whole and the performance of the Chairperson was evaluated and the quality, quantity and timeliness of flow of information between the Company''s Management and the Board was assessed.
The Directors expressed their satisfaction with the overall evaluation process.
COMMITTEES
Audit Committee
The composition and terms of reference of the Audit Committee is in accordance with the provisions of the Act and the Listing Regulations and has been furnished in the Corporate Governance Report which forms a part of this Annual Report. There has been no instance where the Board has not accepted the recommendations of the Audit Committee.
Nomination and Remuneration Committee
The composition and terms of reference of the Nomination and Remuneration Committee is in accordance with the provisions of the Act and the Listing Regulations and has been furnished in the Corporate Governance Report which forms a part of this Annual Report.
Stakeholders'' Relationship Committee
The composition and terms of reference of the Share transfer cum Stakeholders Relationship Committee is in accordance with the provisions of the Act and the Listing Regulations and has been furnished in the Corporate Governance Report which forms a part of this Annual Report.
Corporate Social Responsibility Committee
The composition and terms of reference of the Corporate Social Responsibility Committee is in accordance with the provisions of the Act and has been furnished in the Corporate Governance Report which forms a part of this Annual Report.
EXTRACT OF THE ANNUAL RETURN
The extract of the Annual Return in accordance with section 134(3)(a) of the Companies Act, 2013, read with the Rules made there under in Form No. MGT - 9 forms part of the Board''s Report and is annexed herewith as Annexure - 1.
INTERNAL FINANCIAL CONTROL SYSTEMS
The Audit Committee of the Board of Directors actively reviews the adequacy and effectiveness of the internal control system and suggests improvements to strengthen the same. In the opinion of the Board, the existing internal control framework is adequate and commensurate to the size and nature of the business of the Company. During the year, such controls were tested and no reportable material weaknesses in the design or operation were observed.
RISK MANAGEMENT POLICY
The Board of Directors of the Company has formulated a Risk Management Policy which aims at enhancing Shareholders'' value and providing an optimum risk reward tradeoff. The risk management approach is based on a clear understanding of the variety of risks that the organization faces, disciplined risk monitoring and measurement and continuous risk assessment and mitigation measures. The Audit Committee oversees the risk management and mitigation which is reviewed by the Board periodically at its meetings. During the year, no major risks were noticed, which may threaten the existence of the Company.
CORPORATE SOCIAL RESPONSIBILITY
The brief outline of the Corporate Social Responsibility (âCSRâ) Policy of the Company and the initiatives undertaken by the Company on CSR activities during the year are set out in Annexure - 3 of this report in the format prescribed in the Companies (Corporate Social Responsibility Policy) Rules, 2014. The policy is available on the website of the Company at the link: http://www.rdbindia.com/pdf/codes%20and%20policies/p olicy on corporate social responsibility.pdf
POLICY ON PREVENTION OF INSIDER TRADING
Your Company has adopted a âCode of Practice & Procedure for Fair Disclosureâ as envisaged under SEBI (Prohibition of Insider Trading) Regulations, 2015 with a view to Regulate trading in equity shares of the Company by the Directors and Designated Employees of the Company. The said Code is available on the website of the Company at the link:
http://www.rdbindia.com/pdf/codes%20and%20policies/Code%20of%20Practices%20and%20Procedures%20for%20Fair%20Disclosure%20of%20Unpublished%20Price%20Sensitive%20Information.pdf
VIGIL MECHANISM
Pursuant to the provisions of the Companies Act, 2013 and the Listing Regulations your Company has formulated a Vigilance Mechanism/Whistle Blower Policy to provide a mechanism for Directors and Employees of the Company to report genuine concerns. The Whistle Blowers may approach the Vigilance Officer and the Vigilance Officer places the report / status of complaints received and resolved, if any to the members of Audit Committee. Further the aggrieved person can have direct access to the Chairman of Audit Committee. The Whistle Blower Policy also provides for adequate safeguards against victimization of persons who use such mechanism and is also available at the Company''s website at the link: http://www.rdbindia.com/pdf/codes%20and%20policies/vi gilance mechanism or whistle blower policy.pdf
DISCLOSURES UNDER SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION & REDRESSAL) ACT, 2013
The Company has adopted a Policy on prevention, prohibition and redressal of sexual harassment at workplace in line with the provisions of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 and the Rules framed thereunder for prevention and redressal of complaints of sexual harassment at workplace. The Internal Complaints Committee, which has been constituted as per the aforesaid policy, reports to the Audit Committee of the Board of Directors of your Company on the complaints received and action taken by it during the financial year. It may be noted that, during the year, no complaint was lodged with the Internal Complaints Committee.
PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS UNDER SECTION 186 OF THE ACT
During the financial year 2017-18, the loans made, guarantees given or securities provided by your Company, being a company engaged in providing Infrastructural facilities, were exempted from the applicability of Section 186 of the Act. However, the investments / acquisitions made by your Company by way of subscription, purchase or otherwise in the securities of any other body corporate, which falls within the ambit of Section 186 of the Act were applicable to your Company and are detailed in the notes to Financial Statements which forms a part of this Annual Report. Further for future reference, it may be noted that the investments / acquisitions made of the company providing infrastructural facilities has also been exempted from the applicability of Section 186 of the Companies Act, vide MCA notification dated 7th May, 2018.
PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES
All contracts / arrangements / transactions entered by the Company during the financial year with related parties were in the ordinary course of business and on arm''s length basis and in compliance with the applicable provisions of the Act and the Listing Regulations. During the year, the Company had not entered into any contract / arrangement / transaction with related parties which could be considered material in accordance with the policy of the Company on related party transactions, i.e., there were no transactions exceeding ten percent of the annual turnover as per the last audited financial statements, entered into during the year. Accordingly, the disclosure required under section 134(3)(h) of the Act read with Rule 8(2) of the Companies (Accounts) Rules, 2014 in Form AOC-2 is not applicable to your Company.
Further, there are no materially significant related party transactions made by the Company with Promoters, Directors, Key Managerial Personnel or other Designated Persons which may have a potential conflict with the interest of the Company at large.
The details of related party transactions are disclosed and set out in notes to the Standalone Financial Statements forming part of this Annual Report. The Company''s policy on related party transactions as approved by the Board may be accessed on the Company''s website at the link: http://rdbindia.com/pdf/codes%20and%20policies/policy_ on_related_party_transactions.pdf
DETAILS OF SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS OR TRIBUNALS IMPACTING THE GOING CONCERN STATUS AND COMPANY''S OPERATIONS IN FUTURE
There were no significant and material orders passed by the regulators or courts or tribunals impacting the going concern status and Company''s operations in future.
PARTICULARS OF EMPLOYEES AND RELATED DISCLOSURES
Disclosures pertaining to remuneration and other details as required under Section 197(12) of the Act, read with Rules made thereunder, are annexed to this report as Annexure - 4.The Annexure - 4 also includes the statement showing names of top ten employees in terms of remuneration drawn under Rule 5(2) & (3) of Appointment and Remuneration Rules.
None of the employees of the Company is in receipt of remuneration exceeding the limits prescribed under the Act read with the rules framed thereunder and the schedules appended thereto.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNING AND OUTGO
Particulars of conservation of energy, technology absorption and foreign exchange earnings and outgo as required under Section 134 sub-section (3)(m) of the Companies Act, 2013, read with the Companies (Accounts) Rules, 2014 are given in Annexure - 5 and forms part of this Report.
AUDIT AND AUDITORS
Statutory Audit
M/s. S.M. Daga & Co., Chartered Accountants (Firm Registration No. 303119E), the Statutory Auditor of your Company have conducted the Statutory audit of the Company for the financial year 2017-18. The Independent Auditors Report for the financial year ended 31st March, 2018 forms a part of this Annual Report.
The Company is pleased to inform that there is no qualification / reservation / adverse remark made by the Statutory Auditor in their report.
No frauds were reported by auditors under Sub-Section (12) of Section 143 of the Act.
Statutory Auditors
Your Company at its eighth Annual General Meeting held on 5th September, 2014 had appointed M/s. S.M. Daga & Co, Chartered Accountants (Firm Registration No. 303119E), as the Statutory Auditor of your Company to hold office from the conclusion of eighth Annual General Meeting till the conclusion of thirteenth Annual General Meeting of the Company to be held in the year 2019, subject to ratification of the appointment by the Members at every Annual General Meeting. M/s. S.M. Daga & Co, Statutory Auditors vide their letter dated 26th July, 2018 have resigned as the Statutory Auditor of your Company, resulting into a casual vacancy in the office of Statutory Auditor of the Company. The Board of Directors based on the recommendation of the Audit Committee and pursuant to the provisions of Section 139(8) of the Act, have appointed M/s. L B Jha & Co., Chartered Accountants (Firm Registration No. 301088E), w.e.f 27th July, 2018 to fill the casual vacancy who shall hold office as the Statutory Auditor of the Company till the conclusion of Twelfth Annual General Meeting subject to approval by the Members at the ensuing Annual General Meeting.
Further, the Board of Directors based on the recommendation of the Audit Committee and pursuant to Sections 139, 141, 142 and other applicable provisions, if any, of the Act read with the Companies (Audit and Auditors) Rules, 2014, have also recommended the appointment of M/s. L B Jha & Co., Chartered Accountants (Firm Registration No. 301088E), as Statutory Auditor of your Company to hold office for a period of five consecutive years, from the conclusion of the twelfth Annual General Meeting, till the conclusion of the seventeenth Annual General Meeting of the Company to be held in the year 2023 on such remuneration as may be mutually agreed upon between the Board of Directors of the Company and the Auditor, plus taxes, as applicable and reimbursement of out-of-pocket expenses.
It may be noted that your Company has received consent letter and eligibility certificate from M/s. L B Jha & Co. to act as Statutory Auditor of the Company along with a confirmation that, their appointment, if made, would be within the limits prescribed under the Companies Act, 2013.
Secretarial Auditors
Pursuant to Section 204 of the Companies Act, 2013 the Company had appointed M/s. MR & Associates, Company Secretaries, to conduct the secretarial audit of the Company for the financial year 2017-18. The Company had provided all assistance and facilities to the Secretarial Auditor for conducting their audit. The report of the Secretarial Auditor for the financial year 2017-18 is annexed to this report as Annexure - 6.
The Company is pleased to inform that there is no qualification / reservation / adverse remark made by the Secretarial Auditor in their report.
Internal Auditors
Pursuant to Section 138(1) of the Act, M/s Garg Narender & Co., Chartered Accountants has been appointed as the Internal Auditor of your Company for the financial year 2017-18 to conduct the internal audit of your Company. The Internal Auditor reports to the Audit Committee of the Board of your Company and the report of internal audit is also placed at the meetings of the Audit Committee for review.
CORPORATE GOVERNANCE
A detailed report on Corporate Governance together with a certificate of compliance from the Statutory Auditors, as required by Regulations 17(7) of the Listing Regulations, is presented in separate section and is annexed to this report as Annexure - 7.
CEO AND CFO CERTIFICATION The CEO/ CFO
certificate on the financial statements of the Company as required under Regulation 17(8) of the Listing Regulations is annexed to the Corporate Governance Report which is annexed to this Report as Annexure -7.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
The Management Discussion and Analysis Report for the year under review, as stipulated under Regulation 34 of the Listing Regulations, is presented in separate section and is annexed to this report as Annexure - 8.
STATEMENT ON COMPLIANCES OF THE APPLICABLE SECRETARIAL STANDARDS
The Directors of your Company have devised proper systems to ensure compliance with the provisions of all applicable Secretarial Standards and that such systems are adequate and operating effectively.
HUMAN RESOURCES
Your Company believes in adopting the best human resource practices by providing its employees a congenial and harmonious working environment with all the necessary infrastructure and by giving them equal opportunities to rise and grow. Your Company continues to implement the best of human resource policies so as to ensure that talent retention is ensured at all levels. Employee relations continued to be cordial and harmonious at all levels and in all divisions of the Company during the year under review.
HEALTH, SAFETY AND ENVIRONMENTAL PROTECTION
Your Company is committed to protect the health and safety of everyone involved in its operation, and the sustainability of the environment in which it operates. The Company''s policy requires the conduct of operations in such a manner so as to ensure safety of all concerned environmental regulations and prevention of misuse of natural resources. Your Company has been complying with relevant and applicable environmental laws and has been taking all necessary measures to protect the environment and maximize workers'' protection and safety.
OTHER DISCLOSURES
Change in Nature of Business, if any
There has been no change in the nature of business of the Company during the financial year ended 31st March, 2018.
Material Changes and Commitments after the balance Sheet Date between the end of the Financial Year 201718 and the date of this Report
There were no Material changes and commitments affecting the financial position of the Company between the end of the financial year i.e. 31st March, 2018 and date of this Report i.e. 27th July, 2018.
Public Deposits
During the year under review your Company has not accepted Deposits falling within the meaning of section 73 of the Companies Act, 2013 and the Companies (Acceptance of Deposits) Rules, 2014.
Cost Audit
Cost Audit is not applicable to your Company as per the provisions of Section 148 of the Companies Act, 2013
ACKNOWLEDGEMENTS
Your Directors would like to place on record their sincere gratitude to the shareholders, bankers, business associates, retailers, suppliers, customers, government and other regulatory agencies for their continued support and faith in the Company. Your Directors are also happy to place on record their appreciation for the whole-hearted co-operation, commitment and contribution made by all the employees and look forward to their continued support.
For and on behalf of the Board
Place: Kolkata
Date: 27th July , 2018
Sd/-
Sunder Lal Dugar
Chairman & Managing Director
Mar 31, 2016
DIRECTORS'' REPORT
Dear Shareholders,
The Directors have pleasure to present their 10th Annual Report on the business and operations of the Company together with the Audited Accounts for the year ended 31st March, 2016.
FINANCIAL SUMMARY (Rupees in Lacs)
Particulars |
Consolidated 2015-16 2014-15 |
Standalone 2015-16 2014-15 |
||
Total Income |
4,968.45 |
6,483.14 |
3,254.71 |
4,023.80 |
Less: Expenses |
4,510.79 |
5,528.47 |
2,826.48 |
3,646.25 |
Profit before interest and depreciation |
457.66 |
954.67 |
428.23 |
377.55 |
Less: a) Interest |
376.82 |
377.85 |
277.31 |
275.06 |
b) Depreciation & Amortization |
88.14 |
41.25 |
62.66 |
37.51 |
Profit before taxation |
(7.30) |
535.57 |
88.26 |
64.98 |
Less:- Provisions for current tax and deferred tax |
163.32 |
196.73 |
27.47 |
16.21 |
(170.62) |
338.84 |
60.79 |
48.77 |
|
Add: Share of Profit/(Loss) in Associates |
34.68 |
1.72 |
-- |
-- |
Less:- Minority Adjustment |
(197.53) |
(0.46) |
-- |
-- |
Profit After Tax after minority adjustments |
61.59 |
340.10 |
60.79 |
48.77 |
Add: Balance brought forward from last year |
4,235.16 |
4,047.01 |
2,983.89 |
3,147.40 |
Balance available for appropriations |
4,296.75 |
4,387.11 |
3,044.68 |
3,196.17 |
Less: Appropriations a) Provision for proposed dividend on equity shares |
172.83 |
172.83 |
||
b) Provision for dividend tax |
-- |
35.18 |
-- |
35.18 |
c) Dividend distribution tax for earlier years |
-- |
-- |
-- |
-- |
Balance carried to the Balance Sheet |
4,296.75 |
4,179.09 |
3,044.68 |
2,988.16 |
PERFORMANCE REVIEW
During the year under review, your Company has executed and handed over possession of Residential/ Commercial projects covering an area of around 60,385 square feet. Presently your Company has 8 on-going projects at various stages of planning and development. This includes housing projects, integrated townships, shopping malls and commercial complexes
During the period under review, your company focused on improving productivity, reducing costs and utilized its cash flows most effectively The Company has posted a net profit of Rs 60.79 Lakhs for the year ended March 31, 2016 against net profit of Rs. 48.77 Lakhs in the previous year. Total Revenue stands at Rs. 3255 Lakhs for the year ended March 31, 2016 and Rs. 4023.80 Lakhs for the year ended March 31, 2015. The consolidated net profit of the Company is Rs. 61.59 Lakhs for the year ended March 31, 2016 against net profit of Rs. 340.10 Lakhs in the previous year. Total Revenue stands at Rs. 4968.45 Lakhs for the year ended March 31, 2016 and Rs. 6483.14 Lakhs for the year ended March 31, 2015.
CHANGE IN THE NATURE OF BUSINESS, IF ANY
There was no change in the nature of business of the Company during the financial year ended 31st March, 2016 DIVIDEND & RESERVES
In order to conserve existing resources of the Company, your directors do not recommend any dividend for the financial year 2015-16 and the Company has not proposed any transfer to its Reserves
MATERIAL CHANGES AND COMMITMENTS AFTER THE BALANCE SHEET DATE
There were no Material changes and commitments affecting the financial position of the Company between the end of the financial year (March 31, 2016) and date of the Report (May 30, 2016)
SUBSIDIARIES/JOINT VENTURES/ASSOCIATES
We along with our Subsidiaries are involved in Construction Activities and providing rental services. As on March 31, 2016, we have eleven Subsidiaries and one Associate. The Company has framed a Policy on Material Subsidiary and the same is placed on the Company''s website and the web link for the same is
http://www.rdbindia.com/pdf/codes%20and%20policies/policy on material subsidiary 2015.pdf.In accordance with the provisions of Listing Regulation, RDB Mumbai Private Limited (Formerly known as Maple Tieup Private Limited) is our material subsidiary
In accordance with Section 129(3) of the Companies Act, 2013, the Company has prepared a Consolidated Financial Statement of the Company and all its subsidiary and associate companies, which is forming part of the Annual Report.
Annual Accounts of the subsidiary companies and the related detailed information will be made available to the shareholders of the Company upon receipt of written request from them and the Annual Accounts of the subsidiary companies will also be kept open for inspection by any shareholder of the Company at the registered office of the Company and that of the subsidiary companies concerned between 10.30 a.m. and 1.30 p.m. on any working day. Further as per section 136 of the Companies Act, 2013, the audited financial statements, including the consolidated financial statements and related information of the Company and audited accounts of each of the subsidiaries are available at our website at www.rdbindia.com
A report on performance and financial position of each of the subsidiaries & associates companies included in the consolidated financial statement is presented in a separate section in this Annual Report. Please refer (AOC-1) annexed to the financial statements in the Annual Report.
DIRECTORS'' RESPONSIBILITY STATEMENT
The Directors'' Responsibility Statement, setting out compliance with the accounting and financial reporting requirements specified under Section 134(3)(c) of the Companies Act, 2013, in respect of the financial statements, is furnished below and on behalf of the Board of Directors, it is hereby confirmed:-
1. that in the preparation of the annual accounts for the year ended 31st March, 2016, the applicable accounting standards have been followed [along with proper explanation relating to material departures;] and there are no material departures from the same.
2. that the Directors had selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the company at the end of the financial year and of the profit of the Company for that period;
3. that the Directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;
4. that the Directors had prepared the annual accounts on a going concern basis; and
5. that the internal financial controls to be followed by the Company were laid down and such internal financial controls were adequate and were operating effectively;
6. that 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.
DIRECTORS, KEY MANAGERIAL PERSONNEL (a) STATEMENT ON DECLARATION GIVEN BY INDEPENDENT DIRECTORS UNDER SUB- SECTION (7) OF SECTION 149
The Company has received declarations from all the Independent Directors of the Company confirming that they meet the criteria of independence as laid down in Section 149(6) of the Companies Act, 2013 and Regulation 25 of the SEBI (Listing Obligation and Disclosure Requirements) Regulations 2015.
(b) FAMILIARIZATION PROGRAMME UNDERTAKEN FOR INDEPENDENT DIRECTORS
The Independent Directors are familiarized with the Company, their roles, rights, responsibilities in the Company, nature of the industry in which the Company operates, business model of the Company, etc. The familiarization program with details required as per SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015 is available on the Company''s website under the we blink: http://www.rdbindia.com/pdf/codes%20and%20policies/FAMILIARIZATION PROGRAMME.pdf
(c) APPOINTMENT AND REAPPOINTMENTS
In accordance with the Articles of Association of the Company and Section 152 of the Companies Act, 2013, Smt. Kusum Devi Dugar retires at the ensuing Annual General Meeting (AGM) and being eligible offers herself for reappointment. Your Directors recommend her re-appointment. Smt. Kusum Devi Dugar (DIN: 00559322) continues as the Woman Director on the Company''s Board in conformity with the requirements of Section 149(1) of the Companies Act, 2013 and Regulation 17 of the Listing Regulations.
The Board of Directors re-appointed Sri Sunder Lal Dugar as the Managing Director and Sri Pradeep Kumar Pugalia as the whole time Director of the Company for a further period of 3 years from 1st July 2016 to 30th June 2019, subject to the approval of shareholders in the ensuing Annual General Meeting. Brief resumes of the Directors being reappointed forms part of the notice of the ensuing Annual General Meeting.
NUMBER OF MEETINGS OF THE BOARD OF DIRECTORS
The Board met four times during the year on 28th May, 2015; 14th August, 2015; 14th November, 2015 and 12th February, 2016. For details of the meetings of the board, kindly refer to the corporate governance report, which forms part of this report.
AUDIT COMMITTEE
The composition and terms of reference of the Audit Committee has been furnished in the Corporate Governance Report forming a part of this Annual Report. There has been no instance where the Board has not accepted the recommendations of the Audit Committee.
NOMINATION AND REMUNERATION COMMITTEE
The composition and terms of reference of the Nomination and Remuneration Committee has been furnished in the Corporate Governance Report forming a part of this Annual Report.
STAKEHOLDERS'' RELATIONSHIP COMMITTEE
The composition and terms of reference of the Share transfer cum Stakeholders Relationship Committee has been furnished in the Corporate Governance Report forming a part of this Annual Report.
REMUNERATION POLICY OF THE COMPANY
The Company''s Policy relating to appointment of Directors, payment of Managerial remuneration, Directors'' qualifications, positive attributes, independence of Directors and other related matters as provided under Section 178(3) of the Companies Act, 2013 is furnished in ANNEXURE - 1 and forms part of this Report.
FORMAL ANNUAL EVALUATION
One of the vital functions of the Board is monitoring and reviewing the Board Evaluation framework formulated by the Nomination and Remuneration Committee that lay down the evaluation criteria for the performance of all the directors, in accordance with provisions of the Act and SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015.
A separate exercise was carried out to evaluate the performance of individual Directors including the Chairman of the Board, on parameters such as level of engagement and contribution, independence of judgment, safeguarding the interest of the Company and its minority shareholders, etc. The performance of the Non Independent Directors and Board as a whole was also reviewed by the Independent Directors.
The Board of Directors, in its Meeting held on 12th February, 2016 undertook the annual evaluation of its own performance, Board committees and individual directors. The Directors expressed their satisfaction over the evaluation process and results thereof.
EXTRACT OF THE ANNUAL RETURN
The extract of the Annual Return in accordance with section 134(3)(a) of the Companies Act,2013, in Form No. MGT - 9 forms part of the Board''s Report and is annexed herewith as ANNEXURE - 2.
INTERNAL FINANCIAL CONTROL SYSTEMS
The Audit Committee of the Board of directors actively reviews the adequacy and effectiveness of the internal control system and suggests improvements to strengthen the same. In the opinion of the Board, the existing internal control framework is adequate and commensurate to the size and nature of the business of the Company. During the year, such controls were tested and no reportable material weaknesses in the design or operation were observed.
RISK MANAGEMENT POLICY
The Board of Directors of the Company has formulated a Risk Management Policy which aims at enhancing shareholders'' value and providing an optimum risk reward tradeoff. The risk management approach is based on a clear understanding of the variety of risks that the organization faces, disciplined risk monitoring and measurement and continuous risk assessment and mitigation measures. The Audit Committee oversees the risk management and mitigation which is reviewed by the Board periodically at its meetings.
PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS UNDER SECTION 186
Pursuant to Section 186(11) of the Companies Act, 2013 loans made, guarantees given or securities provided by a company engaged in providing infrastructural facilities, specified in Schedule VI of Companies Act 2013, are exempted from disclosure in the Annual Report. Details of investments made under section 186 of the Companies Act 2013 forms part of the Financial Statements.
PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES
All contracts / arrangements / transactions entered by the Company during the financial year with related parties were in the ordinary course of business and on an arm''s length basis. During the year, the Company had not entered into any contract / arrangement / transaction with related parties which could be considered material in accordance with the policy of the Company on materiality of related party transactions. The Policy on materiality of related party transactions as approved by the Board may be accessed on the Company''s website at the link: http://rdbindia.com/pdf/codes%20and%20policies/policy on related party transactions.pdf
DETAILS OF SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS OR TRIBUNALS IMPACTING THE GOING CONCERN STATUS AND COMPANY''S OPERATIONS IN FUTURE
There was no significant and material order passed by the regulators or courts or tribunals impacting the going concern status and Company''s operations in future.
CORPORATE SOCIAL RESPONSIBILITY
The brief outline of the Corporate Social Responsibility (CSR) Policy of the Company and the initiatives undertaken by the Company on CSR activities during the year are set out in ANNEXURE - 3 of this report in the format prescribed in the Companies (Corporate Social Responsibility Policy) Rules, 2014. The policy is available on the website of the Company Weblink:http://rdbindia.com/pdf/codes%20and%20policies/policy on corporate social responsibility.pdf
PARTICULARS OF EMPLOYEES AND RELATED DISCLOSURES
Disclosures pertaining to remuneration and other details as required under Section 197(12) of the Act read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 are annexed as ANNEXURE - 4.
None of the employees of the Company is in receipt of remuneration exceeding the limits prescribed under Rule 5(2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014.
DISCLOSURES UNDERSEXUAL HARASSMENT OF WOMEN ATWORKPLACE (PREVENTION, PROHIBITION & REDRESSAL) ACT2013
The Company has adopted a Policy on prevention, prohibition and redressal of sexual harassment at workplace in line with the provisions of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 and the Rules there under for prevention and redressal of complaints of sexual harassment at workplace The Committee reports to the Audit Committee of the Board of Directors of your Company on the complaints received and action taken by it during the financial year. During the year, no complaint was lodged with the Internal Complaints Committee.
VIGIL MECHANISM
The Company has formulated a Vigilance Mechanism/Whistle Blower Policy as per the provisions of the Companies Act 2013 and Listing Regulation to provide a mechanism for employees of the Company to approach the Vigilance Officer/ Chairman of the Audit Committee of the Company for safeguards against victimization of persons who use such mechanism. The Vigilance Officer places the report/ status of complaints received and resolved, if any to the members of Audit Committee. Further the aggrieved person can have direct access to the Chairman of Audit Committee. The policy is readily available on company''s website.
We blink: http://rdbindia.com/pdf/codes%20and%20policies/vigilance mechanism or whistle blower policy.pdf
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
Management Discussion and Analysis Report for the year under review, as stipulated under Regulation 34 of the Listing Regulation with the Stock Exchange, is presented in separate section and forms part of this report.
CORPORATE GOVERNANCE
Your company has complied with the Corporate Governance Code prescribed by SEBI and a detailed report on Corporate Governance together with a certificate of compliance from the Statutory Auditors, as required by Regulation 34(3) of the Listing Regulation, forms a part of this Annual Report.
CEO and CFO CERTIFICATION
The CEO/ CFO certificate on the financial statements of the Company as required under the Listing Regulation forms part of this Annual Report. HUMAN RESOURCES
Your Company believes in best HR practices by providing its employees a world class working environment, giving them equal opportunities to rise and grow. We continue to implement the best of HR policies so as to ensure that talent retention is ensured at all levels. Employee relations continued to be cordial and harmonious at all levels and in all divisions of the Company during the year.
HEALTH, SAFETY AND ENVIRONMENTAL PROTECTION
Your Company has complied with all the applicable laws. The Company has been complying with relevant laws and has been taking all necessary measures to protect the environment and maximize worker protection and safety.
AUDITORS
At the Annual General Meeting held on 5th September 2014, M/s. S M Daga & Co., Chartered Accountants (Firm Registration No. 303119E) were appointed as the Statutory Auditors of the Company to hold office till the conclusion of the 13th Annual General Meeting, subject to ratification by the members annually. Accordingly, appointment of M/s. S. M. Daga & Co., Chartered Accountant, as Statutory Auditors of the Company is placed for ratification by the shareholders. In this regard, the Company has received a certificate from the auditors to the effect that if they are re-appointed, it would be in accordance with the provisions of Section 141 of the Companies Act, 2013.
AUDITORS'' OBSERVATION
There are no reservations, qualifications or adverse remarks contained in Auditors'' Report attached to the Balance Sheet as at 31st March, 2016.
SECRETARIAL AUDITORS
Pursuant to Section 204 of the Companies Act 2013 the company had appointed M/s. MR & Associates, Company Secretaries, to conduct the secretarial audit of the company for the financial year 2015-16. The company had provided all assistance and facilities to the Secretarial Auditor for conducting their audit. The report of the Secretarial Auditor for the financial year 2015-16 is annexed to this report as ANNEXURE - 5.
The Company is pleased to inform that there was no qualification/reservation/adverse remark made by the Secretarial Auditor in his report.
PUBLIC DEPOSIT
The Company has not accepted Deposits falling within the meaning of section 73 of the Companies Act, 2013 and the Companies (Acceptance of Deposits) Rules, 2014 during the year under review.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNING AND OUTGO
Particulars of conservation of energy, technology absorption and foreign exchange earnings and outgo as required under Section 134 subsection (3)(m) of the Companies Act,2013, read with the Companies (Accounts) Rules, 2014 are given in the ANNEXURE - 6 and forms part of this Report.
ACKNOWLEDGEMENTS
Your Directors would like to place on record their sincere gratitude to the shareholders, bankers, business associates, retailers, suppliers, customers, government and other regulatory agencies for their continued support and faith in the Company. Your Directors are also happy to place on record their appreciation for the whole-hearted co-operation, commitment and contribution made by all the employees and look forward to their continued support.
For and on behalf of the Board
Place: Kolkata
Date: 30th day of May, 2016
Sunder Lal Dugar
Chairman & Managing Director
Mar 31, 2015
Dear Shareholders,
The Directors have pleasure to present their 9th Annual Report on the
business and operations of the Company together with the Audited
Accounts for the year ended 31st March, 2015.
FINANCIAL SUMMARY
A summary of Consolidated and Standalone financial results of the
Company and its subsidiaries for the year ended 31st March 2015 is
given below:
Consolidated Standalone
Particulars 2014-15 2013-14 2014-15 2013-14
Total Income 6,483.14 9,809.58 4,023.80 6,264.29
Less: Expenses 5,528.47 8,674.46 3,646.25 5,782.67
Profit before interest
and depreciation 954.67 1,135.12 377.55 481.62
Less: a) Interest 377.85 455.32 275.06 362.44
b) Depreciation & Amortisation 41.25 97.62 37.51 73.51
Profit before taxation 535.57 582.18 64.98 45.67
Less:- Provisions for
current tax and deferred tax 196.73 207.06 16.21 23.62
Profit After Tax 338.84 375.12 48.77 22.05
Add: Share of Profit/(Loss)
in Associates 1.72 (0.21) -- --
Less:-
Minority Adjustment (0.46) (16.03) -- --
Profit After Tax after
minority adjustments 340.10 358.87 48.77 22.05
Add: Balance brought forward
from last year 4,047.01 3,891.67 3,147.40 3,328.88
Balance available for
appropriations 4,387.11 4,250.55 3,196.17 3,350.93
Less: Appropriations
a) Provision for proposed
dividend on equity shares 172.83 172.83 172.83 172.83
b) Provision for dividend tax 35.18 29.37 35.18 29.37
c) Dividend distribution tax
for earlier years -- 1.33 -- 1.33
Balance carried to the Balance
Sheet 4,179.09 4,047.01 2,988.16 3,147.40
PERFORMANCE REVIEW
During the year under review, your Company has executed and handed over
possession of Residential/ Commercial projects covering an area of
around 75,651 square feet. Presently your Company along-with its
subsidiaries has 9 on-going projects at various stages of planning and
development on the available land bank. This includes housing projects,
integrated townships, shopping malls and commercial complexes.
During the period under review, your company focused on improving
productivity, reducing costs and utilized its cash flows most
effectively.
Your Company has changed the method of calculation of depreciation from
Written Down Value (WDV) to Straight Line Method (SLM) for better
presentation of Financial Statements.
The Company has posted a net profit of Rs. 48.77 Lakhs for the year
ended March 31,2015 against net profit of Rs. 22.05 Lakhs in the
previous year. Total Revenue stands at Rs. 4023.80 for the year ended
March 31, 2015 and Rs. 6264.29 Lakhs for the year ended March 31,2014.
The consolidated net profit of the Company is Rs. 340.10 Lakhs for the
year ended March 31, 2015 against net profit of Rs. 358.88 Lakhs for
the year ended March 31, 2014. Total Revenue stands at Rs. 6483.14
Lakhs for the year ended March 31, 2015 and Rs. 9809.58 Lakhs for the
year ended March 31,2014.
CHANGE IN THE NATURE OF BUSINESS, IF ANY
There was no change in the nature of business of the Company during the
financial year ended 31st March, 2015.
DIVIDEND & RESERVES
The Board in its meeting held on May 28, 2015 keeping in view the
overall performance during the year recommended a dividend of Re. 1/-
per equity share of Rs. 10 each (i.e. 10%) for the financial year ended
31st March, 2015, which if approved at the ensuing Annual
General Meeting, will be paid to those members whose names appear in
the Register of Members as on 28th August, 2015; with respect to the
shares held In demateriallzed form, it would be paid to members whose
names are furnished by the NSDLand CDSLas beneficial owners as on that
date. The total dividend outgo for the current year amounts to Rs.
208.01 Lakhs (inclusive of dividend distribution tax).
During the year under review, no amount was transferred to General
Reserve.
MATERIAL CHANGES AND COMMITMENTS AFTERTHE BALANCE SHEET DATE
There were no Material changes and commitments affecting the financial
position of the Company between the end of the financial year (March
31,2015) and date of the Report.(May 28,2015)
SUBSIDIARIES/JOINTVENTURES/ASSOCIATES
We along with our subsidiaries are involved in construction activities
and providing rental services. As on March 31,2015, we have 11
subsidiaries and one associate. During the year Maple Tiellp Private
Limited became subsidiary of the Company pursuant to acquisition of 70%
of its shares and Company divested its share holding in Rathi Ess En
finance Co. Pvt Ltd which ceased to be the subsidiary thereon.
In accordance with Section 129(3) of the Companies Act, 2013, the
Company has prepared a Consolidated Financial Statement of the Company
and all its subsidiary and associate companies, which is forming part
of the Annual Report.
Annual Accounts of the subsidiary companies and the related detailed
information will be made available to the shareholders of the Company
upon receipt of written request from them and the Annual Accounts of
the subsidiary companies will also be kept open for inspection by any
shareholder of the Company at the registered office of the Company and
that of the subsidiary companies concerned between 10.30 a.m. and 1.30
p.m. on any working day. Further as per section 136 of the Companies
Act, 2013, the audited financial statements, including the consolidated
financial statements and related information of the Company and audited
accounts of each of the subsidiaries are available at our website
atwww.rdbindia.com
A report on performance and financial position of each of the
subsidiaries & associates companies included in the consolidated
financial statement is presented in a separate section in this Annual
Report. Please refer (AOC-1) annexed to the financial statements in the
Annual Report.
DIRECTORS'RESPONSIBILITY STATEMENT
The Directors' Responsibility Statement, setting out compliance with
the accounting and financial reporting requirements specified under
Section 134(3)(c) of the Companies Act, 2013, in respect of the
financial statements, is furnished below and on behalf of the Board of
Directors, it is hereby confirmed:-
1. that in the preparation of the annual accounts, the applicable
accounting standards have been followed along with proper explanation
relating to material departures;
2. that the Directors had selected such accounting policies and applied
them consistently and made judgments and estimates that are reasonable
and prudent so as to give a true and fair view of the state of affairs
of the company at the end of the financial year and of the profit of
the Company forthat period;
3. that the Directors had taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of this Act for safeguarding the assets of the Company and
for preventing and detecting fraud and other irregularities;
4. that the Directors had prepared the annual accounts on a going
concern basis;
5. that the internal financial controls to be followed by the Company
were laid down and such internal financial controls were adequate and
were operating effectively; and
6. that 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.
DIRECTORS KEY MANAGERIAL PERSONNEL
(a) APPOINTMENT OF INDEPENDENT DIRECTORS:
At the Annual General Meeting of the Company held on 5th September,
2014, the Members of the Company appointed Mr. Waseem Javed Khan (DIN:
06368949), Sri Ravi Prakash Pincha (DIN : 00094695) and Sri Mahendra
Pratap Singh (DIN : 01839950) as Independent Directors under the Act
fora term of up to 31st March, 2019. Mr. Waseem Javed Khan had joined
the Board as Additional Director on 1st June, 2014.
(b) CHANGE IN DIRECTORSHIP DURING THE YEAR:
Mr. Surendra Kumar Parakh, Independent Director resigned from the Board
due to some unavoidable circumstances, w.e.f. 1 st June, 2014. The
Board places on record their appreciation for the services and
contribution made by him during his tenure.
(c) STATEMENT ON DECLARATION GIVEN BY INDEPENDENT DIRECTORS UNDER
SUB-SECTION (6) OF SECTION 149
The Company has received declarations from all the Independent
Directors of the Company confirming that they meet the criteria of
independence as laid down in Section 149(6) of the Companies Act, 2013
and Clause 49 of the Listing Agreement.
(d) FAMILIARIZATION PROGRAMME UNDERTAKEN FOR INDEPENDENT DIRECTORS
The Independent Directors are familiarised with the Company, their
roles, rights, responsibilities in the Company, nature of the industry
in which the Company operates, business model of the Company, etc. On
appointment, the Independent Directors are issued Letter of Appointment
setting out in detail, the terms of appointment, duties,
responsibilities and expected time commitments. Each newly appointed
Independent Director is taken through a formal induction program on the
Company's operations, marketing, finance and other important aspects.
The Company Secretary briefs the Director about their legal and
regulatory responsibilities as a Director. The familiarization program
is available on the Company's website under the weblink:
http://rdbindia.com/pdf/codes%20and%20policies/FAMILIARIZATION_PROGRAMME.pdf
(e) APPOINTMENT OF NON- INDEPENDENT DIRECTORS:
As per the provisions of Section 149(1) of the Companies Act, 2013 and
revised Clause 49 of the Listing Agreement, the Company is required to
have atleast one Woman Director on its Board. Keeping in view this
requirement, Smt. Kusum Devi Dugar (DIN: 00559322) was appointed as an
Additional Director w.e.f. 1st June, 2014 on recommendation of the
Nomination and Remuneration Committee, whose appointment was
regularized by the members in the 8th Annual General Meeting held on
5th September, 2014.
(f) RETIREMENT BY ROTATION
In accordance with the Articles of Association of the Company and
Section 152 of the Companies Act, 2013, Mr. Pradeep Kumar Pugalia (DIN
: 00501351) retires at the ensuing Annual General Meeting (AGM) and
being eligible offers himself for re-appointment. Your Directors
recommend his re-appointment.
A brief profile of the above Directors seeking
appointment/re-appointment required under Clause 49 of the Listing
Agreement is given in the Notice of AGM.
(g) KEY MANAGERIAL PERSONNEL
The Board of Directors of the Company in their meeting held on 16th
April, 2014 approved the continuation of office of the existing KMP,
Mr. Anil Kumar Apat as the Chief Financial Officer of the Company and
Mrs. Satabdi Sengupta as Company Secretary cum Compliance Officer of
the Company.
Mrs. Satabdi Sengupta, Company Secretary cum Compliance Officer
resigned from her position w.e.f. 8th October, 2014. The Board places
on record its appreciation for the services rendered by her during her
association with Company. Further, Miss Deepika Sethia was appointed as
Company Secretary cum Compliance Officer w.e.f. 14th November, 2015.
NUMBER OF MEETINGS OF THE BOARD OF DIRECTORS
The Board met Six times during the year. For details of the meetings of
the board, kindly refer to the Corporate Governance Report, which forms
part of this report.
AUDIT COMMITTEE
The composition and terms of reference of the Audit Committee has been
furnished in the Corporate Governance Report forming a part of this
Annual Report. There has been no instance where the Board has not
accepted the recommendations of the Audit Committee.
NOMINATION AND REMUNERATION COMMITTEE
The composition and terms of reference of the Nomination and
Remuneration Committee has been furnished in the Corporate Governance
Report forming a part of this Annual Report.
STAKEHOLDERS' RELATIONSHIP COMMITTEE
The composition and terms of reference of the Share transfer cum
Stakeholders Relationship Committee has been furnished in the Corporate
Governance Report forming a part of this Annual Report.
NOMINATION AND REMUNERATION POLICY OF THE COMPANY
The Company's Policy relating to appointment of Directors, payment of
Managerial remuneration, Directors' qualifications, positive
attributes, independence of Directors and other related matters as
provided under Section 178(3) of the Companies Act, 2013 is furnished
in ANNEXURE - 1 and forms part of this Report.
FORMAL ANNUAL EVALUATION
One of the vital functions of the Board is monitoring and reviewing the
Board Evaluation framework formulated by the Nomination and
Remuneration Committee that lay down the evaluation criteria for the
performance of all the Directors, in accordance with provisions of the
Act and the corporate governance requirements as prescribed by
Securities and Exchange Board of India ("SEBI") under Clause 49 of
the Listing Agreements ("Clause 49").
A separate exercise was carried out to evaluate the performance of
individual Directors including the Chairman of the Board, on parameters
such as level of engagement and contribution, independence of
judgement, safeguarding the interest of the Company and its minority
shareholders, etc. The performance of the Non Independent Directors and
Board as a whole was also reviewed by the
The Board of Directors, in its Meeting held on 11th February, 2015
undertook the annual evaluation of its own performance, Board
committees and individual Directors. The review concluded that the
performance of the Directors, Committees & the Board as a whole, to be
adequate and satisfactory.
EXTRACT OF THE ANNUAL RETURN
The extract of the Annual Return in accordance with section 134(3)(a)
of the Companies Act,2013, in Form No. MGT - 9 forms part of the
Board's Report and is annexed herewith as ANNEXURE - 2.
INTERNAL FINANCIAL CONTROL SYSTEMS
The Audit Committee of the Board of directors actively reviews the
adequacy and effectiveness of the internal control system and suggests
improvements to strengthen the same. In the opinion of the Board, the
existing internal control framework is adequate and commensurate to the
size and nature of the business of the Company. During the year, such
controls were tested and no reportable material weaknesses in the
design or operation were observed.
RISK MANAGEMENT POLICY
The Board of Directors of the Company has formulated a Risk Management
Policy which aims at enhancing shareholders' value and providing an
optimum risk reward tradeoff. The risk management approach is based on
a clear understanding of the variety of risks that the organisation
faces, disciplined risk monitoring and measurement and continuous risk
assessment and mitigation measures.
PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS UNDER SECTION 186
Pursuant to Section 186(11) of the Companies Act, 2013 loans made,
guarantees given or securities provided by a company engaged in
providing infrastructural facilities, specified in Schedule VI of
Companies Act 2013, are exempted from disclosure in the Annual Report.
Details of investments made under section 186 of the Companies Act 2013
are given in the note to the Financial Statements.
PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES
All contracts / arrangements / transactions entered by the Company
during the financial year with related parties were in the ordinary
course of business and on an arm's length basis. During the year, the
Company had not entered into any contract / arrangement / transaction
with related parties which could be considered material in accordance
with the policy of the Company on materiality of related party
transactions.
The Policy on materiality of related party transactions as approved by
the Board may be accessed on the Company's website at the link: it
DETAILS OF SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR
COURTS OR TRIBUNALS IMPACTING THE GOING CONCERN STATUS AND COMPANY'S
OPERATIONS IN FUTURE
There was no significant and material order passed by the regulators or
courts or tribunals impacting the going concern status and Company's
operations in future.
CORPORATE SOCIAL RESPONSIBILITY
The brief outline of the Corporate Social Responsibility (CSR) Policy
of the Company and the initiatives undertaken by the Company on CSR
activities during the year are set out in ANNEXURE - 3 of this report
in the format prescribed in the Companies (Corporate Social
Responsibility Policy) Rules, 2014. The policy is available on the
website of the Company.
Weblink: http://rdbindia.com/pdf/codes%20and%20polices/policy_on_
related_party_transactions.pdf
PARTICULARS OF EMPLOYEES AND RELATED DISCLOSURES
Disclosures pertaining to remuneration and other details as required
under Section 197(12) of the Act read with Rule 5(1) of the Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014 are
annexed as ANNEXURE - 4.
None of the employees of the Company is in receipt of remuneration
exceeding the limits prescribed under Rule 5(2) of the Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014.
DISCLOSURES UNDER SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION,
PROHIBITION &REDRESSAL) ACT 2013
An Internal Complaints Committee has been constituted under the Anti
Sexual Harassment Policy approved by the Board of Directors of the
Company, which provides a forum to all female personnel to lodge
complaints (if any) therewith for redressal. The Committee submits an
annual report to the Audit Committee of the Board of Directors of your
Company on the complaints received and action taken by it during the
financial year. During the year, no complaint was lodged with the
Internal Complaints Committee.
VIGIL MECHANISM
The Company has formulated a Vigilance Mechanism/Whistle Blower Policy
as per the provisions of the Companies Act 2013 and clause 49 of
Listing Agreement to provide a mechanism for employees of the Company
to approach the Vigilance Officer/ Chairman of the Audit Committee of
the Company for safeguards against victimization of persons who use
such mechanism. The Vigilance Officer places the report/ status of
complaints received and resolved, if any to the members ofAudit
Committee. Further the aggrieved person can have direct access to the
Chairman of Audit Committee. The policy is readily available on
company's website:
http://rdbindia.com/pdf/codes%20and%20policies/vigilance_mechanism
_or_whistle_blower_policy.pdf
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
Management Discussion and Analysis Report for the year under review, as
stipulated under Clause 49 of the Listing Agreement with the Stock
Exchange, is presented in separate section and forms part of this
report.
CORPORATE GOVERNANCE
Your company has complied with the Corporate Governance Code prescribed
by SEBI and a detailed report on Corporate Governance together with a
certificate of compliance from the Statutory Auditors, as required by
Clause 49 of the Listing Agreement, forms a part of this Annual Report.
CEO/CFO CERTIFICATION
The CEO/ CFO certificate on the financial statements of the Company as
required under Clause 49 of the Listing Agreement forms part of this
Annual Report.
HUMAN RESOURCES
Your Company believes in best HR practices by providing its employees a
world class working environment, giving them equal opportunities to
rise and grow. We continue to implement the best of HR policies so as
to ensure that talent retention is ensured at all levels. Employee
relations continued to be cordial and harmonious at all levels and in
all divisions of the Company during the year.
HEALTH, SAFETY AND ENVIRONMENTAL PROTECTION
Your Company has complied with all the applicable laws. The Company has
been complying with relevant laws and has been taking all necessary
measures to protect the environment and maximize worker protection and
safety.
AUDITORS
At the Annual General Meeting held on 5th September 2014, M/s. S M Daga
& Co., Chartered Accountants (Firm Registration No. 303119E) were
appointed as the Statutory Auditors of the Company to hold office till
the conclusion of the 13th Annual General Meeting, subject to
ratification by the members annually. Accordingly, appointment of M/s.
S. M. Daga & Co., Chartered Accountant, as Statutory Auditors of the
Company is placed for ratification by the shareholders. In this regard,
the Company has received a certificate from the auditors to the effect
that if they are re-appointed, it would be in accordance with the
provisions of Section 141 of the Companies Act, 2013.
AUDITORS' OBSERVATION
There are no reservations, qualifications or adverse remarks contained
in Auditors' Report attached to the Balance Sheet as at 31st March,
2015.
SECRETARIAL AUDITORS
Pursuant to Section 204 of the Companies Act, 2013 the company had
appointed M/s MR & Associates, Company Secretaries, to conduct the
secretarial audit of the company for the financial year 2014-15. The
company had provided all assistance and facilities to the Secretarial
Auditor for conducting their audit. The report of the Secretarial
Auditor for the financial year 2014-15 is annexed to this report as
ANNEXURE-5.
The Company is pleased to inform that there was no
qualification/reservation/adverse remarks made by the Secretarial
Auditor in his report.
PUBLIC DEPOSIT
The Company has not accepted Deposits falling within the meaning of
section 73 of the Companies Act, 2013 and the Companies (Acceptance of
Deposits) Rules, 2014 during the year under review.
CONSERVATION OF ENERGY. TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNING AND OUTGO
Particulars of conservation of energy, technology absorption and
foreign exchange earning and outgo as required under Section 134 (3)(m)
of the Companies Act,2013, read with the Companies (Accounts) Rules,
2014 are given in the ANNEXURE - 6 and forms part of this Report.
ACKNOWLEDGEMENTS
Your Directors would like to place on record their sincere gratitude to
the shareholders, bankers, business associates, retailers, suppliers,
customers, government and other regulatory agencies for their continued
support and faith in the Company. Your Directors are also happy to
place on record their appreciation for the whole-hearted co-operation,
commitment and contribution made by all the employees and look forward
to their continued support.
For and on behalf of the Board
Place: Kolkata
Date: 28th day of May, 2015 Sd/-
Sunder Lal Dugar
Chairman & Managing Director
Mar 31, 2014
Dear Members,
The Directors have pleasure in presenting the 8th Annual Report on the
business and operations of the Company together with the audited
accounts for the year ended 31st March 2014.
FINANCIAL PERFORMANCE
A summary of consolidated financial results of the company and its
subsidiaries for the year ended 31st March 2014 is given below:
Consolidated Financial Performance
(Rs. in Lakhs)
Particulars Financial Year
2013-14
Total Income 9809.58
Less: Expenses 8674.46
Profit before interest and depreciation 1135.12
Less: a) Interest 455.32
b) Depreciation & Amortisation 97.62
Profit before taxation 582.18
Less: - Provisions for current tax and deferred tax 207.06
Profit After Tax 375.12
Add: Share of Profit/ (Loss) in Associates (0.21)
Less:-Minority Adjustment (16.03)
Profit After Tax after minority adjustments 358.87
Add: Balance brought forward from last year 3891.67
Balance available for appropriations 4250.55
Less: Appropriations
a) Provision for proposed dividend on equity shares 172.83
b) Provision for dividend tax 29.37
c) Dividend distribution tax for earlier years 1.33
Balance carried to the Balance Sheet 4047.01
(Rs. in Lakhs)
Particulars Financial Year
2012-13
Total Income 12190.66
Less: Expenses 10171.70
Profit before interest and depreciation 2018.96
Less: a) Interest 591.15
b) Depreciation & Amortisation 77.58
Profit before taxation 1350.23
Less: - Provisions for current tax and deferred tax 374.12
Profit After Tax 976.11
Add: Share of Profit/ (Loss) in Associates (0.15)
Less:-Minority Adjustment (13.34)
Profit After Tax after minority adjustments 962.62
Add: Balance brought forward from last year 3129.92
Balance available for appropriations 4092.54
Less: Appropriations
a) Provision for proposed dividend on equity shares 172.83
b) Provision for dividend tax 28.04
c) Dividend distribution tax for earlier years Â
Balance carried to the Balance Sheet 3891.67
A summary of standalone financial results for year ended 31st March
2014 is given below:
Stand - alone Financial Performance (Rs. in Lakhs)
Particulars Financial Year
2013 -14
Total Income 6264.29
Less: Expenses 5782.67
Profit before interest and depreciation 481.62
Less: a) Interest 362.44
b) Depreciation 73.51
Profit before Taxation 45.67
Less: - Provisions for current tax and deferred tax 23.62
Profit After Tax 22.05
Add: Balance brought forward from last year 3328.88
Balance available for appropriations 3350.93
Less: Appropriations
a) Provision for proposed dividend on equity shares 172.83
b) Provision for dividend tax 29.37
c) Dividend distribution tax for earlier years 1.33
Balance carried to the Balance Sheet 3147.40
(Rs. in Lakhs)
Particulars Financial Year
2012 - 13
Total Income 10751.60
Less: Expenses 9063.86
Profit before interest and depreciation 1786.74
Less: a) Interest 518.31
b) Depreciation 50.81
Profit before Taxation 1118.62
Less: - Provisions for current tax and deferred tax 295.55
Profit After Tax 823.07
Add: Balance brought forward from last year 2706.68
Balance available for appropriations 3529.75
Less: Appropriations
a) Provision for proposed dividend on equity shares 172.83
b) Provision for dividend tax 28.04
c) Dividend distribution tax for earlier years -
Balance carried to the Balance Sheet 3328.88
REVIEW OF OPERATIONS
During the year under review, your Company has executed and handed over
possession of Residential Projects covering an area of around 1,87,786
square feet. Presently your Company along-with its subsidiaries has 13
on-going projects at various stages of planning and development on the
available land bank. This includes housing projects, integrated
townships, shopping malls and commercial complexes.
During the period under review, your company focused on improving
productivity, reducing costs and utilized its cash flows most
effectively.
Your Company has not brought any changes in its accounting policies
during the year under review.
DIVIDEND
Keeping in view the overall performance during the year, your directors
are pleased to recommend a final dividend of Re. 1/- per equity share
of Rs. 10 each (i.e. 10%) for the financial year ended 31st March,
2014, which if approved will be paid to those members whose names
appear in the Register of Members as on 28th August, 2014; with respect
to the shares held in dematerialized form, it would be paid to members
whose names are furnished by the NSDL and CDSL as beneficial owners as
on that date. The total dividend outgo for the current year amounts to
Rs. 202 Lacs (inclusive of dividend distribution tax).
DIRECTORS
The strength of Board of the company is 8, which includes 4 Independent
Directors, 1 Non-executive Director, 1 Whole-time Director and 1
Chairman & Managing Director.
Mr. Waseem Javed Khan and Smt. Kusum Devi Dugar joined the Board of the
Company with effect from 1st June 2014 as Additional Directors. They
will hold such office only upto the date of the ensuing Annual General
Meeting of the Company. The Company has received requisite notice in
writing from a member proposing appointment of Smt. Kusum Devi Dugar as
Director liable to retire by rotation and for appointment of Mr.
Waseem Javed Khan as Independent Director of the Company for a term
upto 31st March 2019, subject to the approval of the members.
In order to align the term of existing Independent Directors with the
provisions of the Companies Act, 2013, the Board of Directors in their
meeting held on 28th May, 2014 has proposed the appointment of Sri Ravi
Prakash Pincha, Sri Mahendra Pratap Singh and Sri Om Prakash Rathi as
Independent Directors of the Company for a term upto 31st March 2019,
subject to the approval of the members.
The Company has received declarations from all the Independent
Directors of the Company confirming that they meet the criteria of
independence as prescribed both under sub-section (6) of Section 149 of
the Companies Act, 2013 and under Clause 49 of the Listing Agreement
with the Stock Exchanges.
In accordance with the Articles of Association of the Company and the
provisions of the Companies Act, 2013, Sri Sunder Lai Dugar retires at
the ensuing Annual General Meeting (AGM) and being eligible offers
himself for reappointment.
The Board recommends the appointment of above directors with a view to
avail their valuable advices and wise counsel. A brief profile of the
above Directors seeking appointment/re-appointment required under
Clause 49 of the Listing Agreement is given in the Notice of AGM.
Sri Surendra Kumar Parakh, Independent Director resigned from the Board
w.e.f 01st June, 2014. The Board places on record their high sense of
appreciation for their valuable advices and guidance given during his
association with the Company.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
Management Discussion and Analysis Report for the year under review, as
stipulated under Clause 49 of the Listing Agreement with the Stock
Exchange, is presented in separate section and forms part of this
report.
CORPORATE GOVERNANCE
Your company has complied with the Corporate Governance Code prescribed
by SEBI and a detailed report on Corporate Governance together with a
certificate of compliance from the Statutory Auditors, as required by
Clause 49 of the Listing Agreement, forms a part of this Annual Report.
CEO/CFO CERTIFICATION
The CEO/ CFO certificate on the financial statements of the Company as
required under Clause 49 of the Listing Agreement forms part of this
Annual Report.
HUMAN RESOURCES
Your Company believes in best HR practices by providing its employees a
world class working environment, giving them equal opportunities to
rise and grow. We continue to implement the best of HR policies so as
to ensure that talent retention is ensured at all levels. Employee
relations continued to be cordial and harmonious at all levels and in
all divisions of the Company during the year. Presently your Company
does not have any employee falling within the scope of Section 217 (2A)
of the Companies Act, 1956, read with Companies (Particulars of the
Employees) Rules, 1975.
HEALTH, SAFETY AND ENVIRONMENTAL PROTECTION
Your Company has complied with all the applicable laws. The Company has
been complying with relevant laws and has been taking all necessary
measures to protect the environment and maximize worker protection and
safety.
SUBSIDIARY COMPANIES
As on March 31,2014, your Company has the following 11 subsidiaries:
1. Bahubali Tie-Up Private Limited
2. Baron Suppliers Private Limited
3. Bhagwati Builders & Development Private Limited
4. Bhagwati Plastoworks Private Limited
5. Headman Mercantile Private Limited
6. Kasturi Tie-Up Private Limited
7. Raj Construction Projects Private Limited
8. Rathi EssEn Finance Company Private Limited
9. RDB Legend Infrastructure Private Limited
10. RDB Realty Private Limited
11. Triton Commercial Private Limited
Pursuant to Accounting Standard AS-21 issued by the Institute of
Chartered Accountants of India and the Listing Agreement, Consolidated
Financial Statements, which includes the financial information of the
subsidiaries, are enclosed and forms part of this Annual Report.
In compliance with the General Circular No. 2/2011 dated February 8th
2011, issued by Ministry of Corporate Affairs, the Annual Reports of
the subsidiary companies arc not attached with this Report.
Annual Accounts of the subsidiary companies and the related detailed
information will be made available to the shareholders of the Company
upon receipt of written request from them and the Annual Accounts of
the subsidiary companies will also be kept open for inspection by any
shareholder of the Company at the registered office of the Company and
that of the subsidiary companies concerned between 10.30 a.m. and 1.30
p.m. on any working day.
In compliance with the terms of the exemption granted by Ministry of
Corporate Affairs, Government of India, a statement showing relevant
details for the year ended 31st March, 2014 of the subsidiaries have
been included in the Consolidated Financial statements of the Company
which forms part of this Annual Report.
DIRECTORS' RESPONSIBILITY STATEMENT
The Directors' 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:-
1. that in the preparation of the annual accounts, the applicable
accounting standards have been followed;
2. that the Directors have selected such accounting policies and
applied them consistently and made judgments and estimates that are
reasonable and prudent so as to give a true and fair view of the state
of affairs of the Company at the end of the financial year and of the
profit of the Company for that period;
3. that the Directors have 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;
4. that the Directors have prepared the annual accounts on a going
concern basis.
AUDITORS
The Board, on recommendation of the Audit Committee, has proposed that
M/s S M Daga & Co., Chartered Accountants, Statutory Auditors, who
retire at the ensuing Annual General Meeting and being eligible for
re-appointment, have offered themselves for re-appointment be
re-appointed as Statutory Auditors of the Company to hold office till
the conclusion of fifth consecutive Annual General Meeting (AGM),
subject to ratification by members at every AGM held after the ensuing
AGM. M/s S M Daga & Co. have further confirmed that the said
re-appointment will be in conformity with the provisions of Section 141
of the Companies Act, 2013.
AUDITORS' OBSERVATION
There are no reservations, qualifications or adverse remarks contained
in Auditors' Report attached to the Balance Sheet as at 31st March,
2014.
PUBLIC DEPOSIT
During the year under review, the Company has neither accepted nor
renewed any public deposit and has no overdue or unclaimed public
deposit, as defined under Section 58 (A) of the Companies Act, 1956,
read with Companies (Acceptance of Deposit) Rules, 1975.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNING AND OUTGO
Particulars of conservation of energy, technology absorption and
foreign exchange earning 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 Board of Directors) Rules, 1988 are given
in the annexure and forms part of this Report.
ACKNOWLEDGEMENTS
Your Directors would like to place on record their sincere gratitude to
the shareholders, bankers, business associates, retailers, suppliers,
customers, government and other regulatory agencies for their continued
support and faith in the Company. Your Directors are also happy to
place on record their appreciation for the whole-hearted co-operation,
commitment and contribution made by all the employees and look forward
to their continued support.
For and on behalf of the Board
Place. Kolkata Sunder Lai Dugar
Date: 28th day of May, 2014 Chairman & Managing Director
Mar 31, 2013
The Directors have pleasure in presenting the 7th Annual Report on the
business and operations of the Company together with the audited
accounts for the year ended 31st March, 2013.
FINANCIAL PERFORMANCE
A summary of consolidated financial results of the Company and its
subsidiaries for the year ended 31st March, 2013 is given below:
Consolidated Financial Performance
(Rs. in Lacs)
Financial
Year Financial
Year
Particulars 2012-13 2011-12
Total Income 12,190.66 13,899.25
Less : Expenses 10,171.70 11,116.38
Profit before interest and
depreciation 20,18.96 2,782.87
Less : a) Interest 591.15 896.20
b) Depreciation & Amortisation 77.58 63.13
Profit before taxation 1,350.23 1,823.53
Less : Provisions for current
tax and deferred tax 374.12 455.57
Profit after Tax 976.11 1367.96
Add : Share of Profit/(Loss)
in Associates (0.14) 10.60
Less: Minority Adjustment (13.34) (56.43)
Profit after Tax after minority
adjustments 962.63 1,322.13
Add: Balance brought forward
from last year 3,129.92 1,902.69
Balance available for
appropriations 4,092.55 3,224.82
Less: Appropriations
a) Provision for proposed
dividend on equity shares 172.83 108.00
b) Provision for dividend tax 28.04 17.52
Balance carried to the
Balance Sheet 3,891.68 3,099.30
A summary of standalone financial results for year ended 31st March,
2013 is given below :
Stand-alone Financial Performance (Rs. in Lacs)
Financial Year Financial Year
Particulars 2012-13 2011-12
Total Income 10,751.60 8,994.15
Less : Expenses 9,063.86 6,879.52
Profit before interest
and depreciation 1,786.74 2,114.63
Less : a) Interest 518.31 939.99
b) Depreciation & Amortisation 5081 38.08
Profit before Taxation 1,118.62 1,136.56
Less: Provisions for current
tax and deferred tax 295.55 231.02
Profit after Tax 823.07 905.55
Add : Balance brought
forward from last year 2,706.68 1,926.66
Balance available for
appropriations 3,529.75 2,832.21
Less : Appropriations
a) Provision for proposed
dividend on equity shares 172.83 108.00
b) Provision for dividend tax 28.04 17.52
Balance carried to the
Balance Sheet 3,328.88 2,706.69
REVIEW OF OPERATIONS
During the year under review, the Company''s Total Income has increased
by 19.54% to Rs. 10,751.60 Lakhs as compared to Rs. 8,994.15 Lacs during
the preceding year.
During the year under review, your Company has executed and handed over
possession of Residential Projects covering an area of around 1,64,370
square feet and Commercial Projects covering an area of around 1,523
square feet resulting in aggregate completion of around 1,65,893 square
feet.
Presently your Company along-with its subsidiaries has 13 on-going
projects at various stages of planning and development on the available
land bank. This includes housing projects, integrated townships,
shopping malls and commercial complexes. It is the vision of your
Company to achieve best of professionalism and to develop, build and
deliver best of real estate and quality construction.
During the period under review, your Company focused on improving
productivity, reducing costs and utilized its cash flows most
effectively.
Your Company has not brought any changes in its accounting policies
during the year under review.
More details about the business and operations of your Company are
provided in the Management Discussion and Analysis Report, forming part
of this Annual Report.
DIVIDEND
Keeping in view the overall performance during the year, your directors
are pleased to recommend a final dividend of Rs. 1/- per equity share of
Rs. 10 each (i.e. 10%) for the financial year ended 31st March, 2013,
which if approved will be paid to those members whose names appear in
the Register of Members as on 31st July, 2013; with respect to the
shares held in dematerialized form, it would be paid to members whose
names are furnished by the NSDL and CDSL as beneficial owners as on
that date. The total dividend outgo for the current year amounts to Rs.
200.87 Lacs (inclusive of dividend distribution tax).
AMALGAMATION
A Scheme of Amalgamation of M/s. Pincha Home Builders Private Limited
with your Company was sanctioned by the Hon''ble High Court at Calcutta
vide order dated 27th July, 2012. The order of Hon''ble High Court was
filed with the Registrar of Companies, West Bengal on 25th September,
2012. As a result of the said amalgamation, your Company has achieved
synergy in its operations. In terms of scheme of Amalgamation
64,83,400 no. of fully paid up equity shares of the Company has been
alloted to the shareholders of the said Pincha Home Builders Private
Limited.
DIRECTORS
The strength of Board Members of the Company is seven, which includes 5
Independent Director, 1 Whole-Time Director and 1 Chairman & Managing
Director.
The Board of Directors re-appointed Sri Sunder Lai Dugar as the
Managing Director and Sri Pradeep Kumar Pugalia as the Whole- Time
Director of the Company for a further period of 3 years from 1st July,
2013 to 30th June, 2016, subject to the approval of Shareholders in the
ensuing Annual General Meeting.
Sri Surendra Kumar Parakh was appointed by the Board of Directors as an
additional director w.e.f. 8th August, 2012. Sri Parakh holds office up
to the ensuing Annual General Meeting of the Company and being eligible
offers himself for appointment as the Director of the Company. The
Company has received a notice from a member under section 257 of the
Companies Act, 1956 signifying his intention to propose the candidature
of Sri Surendra Kumar Parakh for the office of director of the Company
liable to retire by rotation.
In terms of Section 256 of the Companies Act, 1956 and Article 89 of
Articles of Association of the Company, Sri Om Prakash Rathi,
Independent Director, retires by rotation at the ensuing Annual General
Meeting, and being eligible, offers himself for re-appointment.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
A separate report on Management Discussion and Analysis as per Clause
49 of the Listing Agreement with the stock exchanges is forming part of
this Annual Report.
CORPORATE GOVERNANCE
Your Company has taken adequate steps to ensure that all mandatory
provisions of Corporate Governance, as provided under Clause 49 of the
Listing Agreement with the stock exchanges, as amended from time to
time are complied with.
A separate report on Corporate Governance along with the Auditors''
Certificate for its due compliance is forming part of this Annual
Report.
CEO/CFO CERTIFICATION
The CEO/ CFO certificate on the financial statements of the Company as
required under Clause 49 of the Listing Agreement forms part of this
Annual Report.
HUMAN RESOURCES
Your Company believes in best HR practices by providing its employees a
world class working environment, giving them equal opportunities to
rise and grow. We continue to implement the best of HR policies so as
to ensure that talent retention is ensured at all levels. Employee
relations continued to be cordial and harmonious at all levels and in
all divisions of the Company during the year. Presently your Company
does not have any employee falling within the scope of Section 217 (2A)
of the Companies Act, 1956, read with Companies (Particulars of the
Employees) Rules, 1975.
HEALTH, SAFETY AND ENVIRONMENTAL PROTECTION
Your Company has complied with all the applicable laws. The Company has
been complying with relevant laws and has been taking all necessary
measures to protect the environment and maximize worker protection and
safety.
SUBSIDIARY COMPANIES
As on March 31, 2013, your Company has the following 11 subsidiaries:
1. Bahubali Tie-Up Private Limited
2. Baron Suppliers Private Limited
3. Bhagwati Builders & Development Private Limited
4. Bhagwati Plastoworks Private Limited
5. Headman Mercantile Private Limited
6. Kasturi Tie-Up Private Limited
7. Raj Construction Projects Private Limited
8. Rathi Essen Finance Company Private Limited
9. RDB Legend Infrastructure Private Limited
10. RDB Realty Private Limited
11. Triton Commercial Private Limited
Pursuant to Accounting Standard AS-21 issued by the Institute of
Chartered Accountants of India and the Listing Agreement, Consolidated
Financial Statements, which includes the financial information of the
subsidiaries, are enclosed and forms part of this Annual Report.
In compliance with the General Circular No. 2/2011 dated February 8th
2011, issued by Ministry of Corporate Affairs, the Annual Reports of
the subsidiary companies are not attached with this Report.
Annual Accounts of the subsidiary companies and the related detailed
information will be made available to the shareholders of the Company
upon receipt of written request from them and the Annual Accounts of
the subsidiary companies will also be kept open for inspection by any
shareholder of the Company at the registered office of the Company and
that of the subsidiary companies concerned between 10.30 a.m. and 1.30
p.m. on any working day.
In compliance with the terms of the exemption granted by Ministry of
Corporate Affairs, Government of India, a statement showing relevant
details for the year ended 31st March, 2013 of the subsidiaries have
been included in the Consolidated Financial Statements of the Company
which forms part of this Annual Report.
DIRECTORS'' RESPONSIBILITY STATEMENT
The Directors'' 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:-
1. that in the preparation of the annual accounts, the applicable
accounting standards have been followed;
2. that the Directors have selected such accounting policies and
applied them consistently and made judgments and estimates that are
reasonable and prudent so as to give a true and fair view of the state
of affairs of the Company at the end of the financial year and of the
profit or loss of the Company for that period;
3. that the Directors have 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;
4. that the Directors have prepared the annual accounts on a going
concern basis.
AUDITORS
M/s S. M. Daga & Co., Chartered Accountants, Statutory Auditors retire
at the ensuing Annual General Meeting and being eligible for
re-appointment, have offered themselves for re-appointment and have
further confirmed that the said re-appointment will be in conformity
with the provisions of Section 224 (IB) of the Companies Act, 1956. The
Board of Directors upon the recommendation of the Audit Committee
proposes the re-appointment of M/s S. M. Daga & Co., Chartered
Accountants as the Statutory Auditors of the Company.
PUBLIC DEPOSIT
During the year under review, the Company has neither accepted nor
renewed any public deposit and has no overdue or unclaimed public
deposit, as defined under Section 58 (A) of the Companies Act, 1956,
read with Companies (Acceptance of Deposit) Rules, 1975.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNING AND OUTGO
Particulars of conservation of energy, technology absorption and
foreign exchange earning 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 Board of Directors) Rules, 1988 are given
in the annexure and forms part of this Report.
ACKNOWLEDGEMENTS
Your Directors would like to place on record their sincere gratitude to
the shareholders, bankers, business associates, retailers, suppliers,
customers, government and other regulatory agencies for their continued
support and faith in the Company. Your Directors are also happy to
place on record their appreciation for the whole-hearted co-operation,
commitment and contribution made by all the employees and look forward
to their continued support.
For and on behalf of the Board
Place : Kolkata Sunder Lai Dugar
Date : 27th
day of May, 2013 Chairman & Managing Director
Mar 31, 2012
The Directors have pleasure in presenting the 6th Annual Report on the
business and operations of the Company together with the audited
accounts for the year ended 31st March 2012.
Consolidated Financial Performance
(Rs in Lacs)
Particulars Financial Year Financial Year
2011-2012 2010-2011
Total Income 13,899.25 10,021.68
Less: Expenses 11,116.38 7,967.85
Profit/(Loss) before
interest and depreciation 2,782.87 2,053.84
Less: a) Interest 896.20 338.90
b) Depreciation 63.13 56.90
Profit/(Loss)
before taxation 1,823.53 1,658.04
Add: Prior Period Income - 0.80
Less:- Provisions for
current tax and deferred tax 455.57 412.69
Profit/(Loss) After Tax 1,367.96 1,246.14
Add: Share of
Profit/Loss in Associates 10.60 0.16
Less:- Minority Adjustment 56.43 (11.89)
Profit/(Loss) After Tax
and minority adjustments 1,322.13 1,258.19
Add: Balance brought
forward from last year 1,902.69 858.13
Balance available for
appropriations 3,224.82 2,116.32
Less: Appropriations
a) Provision for proposed
dividend on equity shares 108.00 64.80
b) Provision for dividend tax 17.52 10.51
c) Transfer to general reserves - 100.00
Balance carried to the
Balance Sheet 3,099.30 1,941.01
Stand-Alone Financial Performance
(Rs in Lacs)
Particulars Financial Year Financial Year
2011-2012 2010-2011
Total Income 8,994.15 6,641.59
Less: Expenses 6,879.52 5,435.54
Profit/(Loss) before
interest and depreciation 2,114.63 1,206.86
Less a) Interest 939.99 362.21
b) Depreciation 38.08 36.04
Profit/(Loss)
before taxation 1,136.56 807.80
Add: Prior Period Income - 0.80
Less: Provisions for
current tax and deferred tax 231.02 195.36
Profit/(Loss) After Tax 905.55 613.24
Add: Balance brought
forward from last year 1,926.66 1,488.73
Balance available for
appropriations 2,832.21 2,101.97
Less: Appropriations
a)Provision for proposed
dividend on equity shares 108.00 64.80
b) Provision for dividend tax 17.52 10.51
c) Transfer to general reserves - 100.00
Balance carried to
the Balance Sheet 2,706.69 1,926.66
Review of operations
During the year under review, the Company's total income has increased
by 35.42 % to Rs8,994.15 Lacs as compared to Rs6,641.59 Lacs during the
preceding year.
During the year under review, your Company has executed and handed over
Residential Projects covering an area of around 56,061 square feet and
Commercial Projects covering an area of around 1,05,000 square feet
resulting in aggregate completion of around 1,61,061 square feet.
Presently your Company along-with its subsidiaries has 20 on going
projects at various stages of planning and development on the available
land bank. This includes housing projects, integrated townships,
shopping malls and commercial complexes. It is the vision of your
Company to achieve best of professionalism and to develop, build and
deliver best of Real Estate and quality construction.
During the period under review, your Company focused on improving
productivity, reducing costs and utilised its cash flows most
effectively.
The Company has not brought any changes in its accounting policies
during the year under review.
More details about the business and operations of your Company are
provided in the Management Discussion and Analysis Report, forming part
of this Annual Report.
Dividend
Your directors are pleased to recommend a final dividend of Rs1/- per
equity share of Rs10 each (i.e. 10%) subject to the approval of members
at the ensuing Annual General Meeting, for the financial year ending
31st March 2012.
Business Activity
The main business activity of your Company is development and
construction of residential and commercial projects.
The Company has been awarded 4 (four) new projects by HSCC, namely,
AIIMS Delhi (Hostel Block), AIIMS Bhubaneswar (Hostel Block), RIMS
Imphal (Hostel Block) and RIMS Imphal (OPD Block). There are 5 projects
which are scheduled to be completed in the coming year.
During the year under review, your Company has not changed its existing
line of business.
Directors
The strength of Board Members of the Company is six, which includes 4
Independent Director, 1 Whole-time Director and 1 Chairman & Managing
Director.
In terms of Section 256 of the Companies Act, 1956 and Clause No. 89 of
Articles of Association of the Company, Mr. Mahendra Pratap Singh,
Independent Director, retires by rotation at the ensuing Annual General
Meeting, and being eligible, offers himself for re-appointment.
Brief resume of Mr. Mahendra Pratap Singh, who is proposed to be
reappointed and other details as stipulated under Clause 49 of the
Listing Agreement, is provided in the Notice for convening the Annual
General Meeting.
Your Directors recommend the above appointment/ re-appointment.
None of the Directors of your Company is disqualified as per the
provisions of Section 274(1)(g) of the Companies Act, 1956.
Loan to Directors and Executives
There were no loans to Directors and Executives during the financial
period.
Management Discussion and Analysis Report
A separate report on Management Discussion and Analysis
as per Clause 49 of the Listing Agreement with the stock exchanges is
forming part of this Annual Report.
Corporate Governance
Your Company has taken adequate steps to ensure that all mandatory
provisions of Corporate Governance, as provided under Clause 49 of the
Listing Agreement with the stock exchanges, as amended from time to
time are complied with.
A separate report on Corporate Governance along with the Auditors'
Certificate for its due compliance is forming part of this Annual
Report.
CEO/CFO Certification
The CEO/ CFO certificate on the financial statements of the Company as
required under Clause 49 of the Listing Agreement forms part of this
Annual Report.
Human Resources
Your Company believes in best HR practices by providing its employees a
world class working environment, giving them equal opportunities to
rise and grow. We continue to implement the best of HR policies so as
to ensure that talent retention is ensured at all levels. Employee
relations continued to be cordial and harmonious at all levels and in
all divisions of the Company during the year. Presently your Company
does not have any employee falling within the scope of Section 217 (2A)
of the Companies Act, 1956, read with Companies (Particulars of the
Employees) Rules, 1975.
Secretarial Compliance Certificate
In the absence of the Company Secretary of the Company, the Board had
appointed Ms Minu Tulsian, Company Secretary, for issuance of
Compliance Certificate in terms of the provisions of Section 383A of
the Companies Act, 1956. The compliance certificate received in
accordance with provisions of Sections 383A of the Companies Act, 1956
read with the Companies (Compliance Certificate) Rules, 2001 forms part
of this Annual Report. The said compliance is self-explanatory and
needs no comments.
Health, Safety and Environmental Protection
Your Company has complied with all the applicable laws. The Company
has been complying with relevant laws and has been taking all necessary
measures to protect the environment and maximise worker protection and
safety.
Subsidiary Company
Your Company has 11 subsidiaries as on 31st March 2012. Pursuant to
Accounting Standard AS-21 issued by the Institute of Chartered
Accountants of India and the Listing Agreement, Consolidated Financial
Statements, which includes the financial information of the
subsidiaries, are enclosed and forms part of this Annual Report.
As per General Circular No. 2/2011 dated 8th February 2011, issued by
Ministry of Corporate Affairs, the requirement of Section 212 of the
Companies Act, 1956, (which requires Holding company to attach the
Annual Report(s) of subsidiary companies with its Annual Report) has
been done away provided certain conditions are fulfilled by the
Company. Your Company has complied with all the conditions as per
the said circular and therefore Annual Report of the subsidiary
companies are not attached with this Report.
In compliance with the terms of the exemption granted by Ministry of
Corporate Affairs, Government of India, we have presented summary
financial information for each subsidiary which includes Capital,
Reserves, Total Assets, Total Liabilities, Details of Investment
(except in case of Investment in the Subsidiaries), Turnover, Profit
before taxation, Provision for taxation, Profit after taxation and
Proposed Dividend which forms part of this Annual Report.
Annual Accounts of the subsidiary companies and the related detailed
information will be made available to the investors of holding and
subsidiary companies upon request from the shareholders and the Annual
Accounts of the subsidiary companies will also be kept for inspection
by any investor in its registered office and that of the subsidiary
companies concerned.
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:-
1. that in the preparation of the annual accounts, the applicable
accounting standards have been followed;
2. that the Directors have selected such accounting policies and
applied them consistently and made judgments and estimates that are
reasonable and prudent so as to give a true and fair view of the state
of affairs of the Company at the end of the financial year and of the
profit or loss of the Company for that period;
3. that the Directors have 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;
4. that the Directors have prepared the annual accounts on a going
concern basis;
Auditors
M/s S M Daga & Co., Chartered Accountants, Statutory Auditors retire at
the ensuing Annual General Meeting and being eligible for
re-appointment, have offered themselves for re-appointment and have
further confirmed that the said re-appointment will be in conformity
with the provisions of Section 224 (1B) of the Companies Act, 1956.
The Board of Directors upon the recommendation of the Audit Committee
proposes the re-appointment of M/s S M Daga & Co., Chartered
Accountants as the Statutory Auditors of the Company.
Auditors observation
There are no reservations, qualification or adverse remark contained in
the Auditors Report attached to the Balance Sheet as at 31st March
2012.
Public Deposit
During the year under review, the Company has neither accepted nor
renewed any public deposit and has no overdue or unclaimed public
deposit, as defined under Section 58 (A) of the Companies Act, 1956,
read with Companies (Acceptance of Deposit) Rules, 1975.
Listing at Stock Exchange
The equity shares of the Company are presently listed at BSE Limited,
P.J Towers, Dalal Street, Mumbai and The Calcutta Stock Exchange
Limited, 7 Lyons Range, Kolkata and the Company has paid listing fee
upto 31st March 2013 in respect of above stock exchanges.
Investor Relations
Investor Relations have been cordial during the year. As a part of
compliance, the Company has a Shareholder's/ Investor's Grievance
Committee to redress the issues relating to investors. It consists of
three members namely Mr. Om Prakash Rathi, Independent Director, Mr.
Mahendra Pratap Singh, Independent Director and Mr. Pradeep Kumar
Pugalia, Whole-Time Director of the Company. Mr. Om Prakash Rathi,
Independent Director is the Chairman of the Committee. The details of
this Committee are provided in the Corporate Governance Report forming
part of this Annual Report.
Conservation of energy, technology absorption and foreign exchange
earning and outgo
Particulars of conservation of energy, technology absorption and
foreign exchange earning 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 Board of Directors) Rules, 1988 are given
in the annexure and forms part of this Report.
Acknowledgements
Your Directors would like to place on record their sincere gratitude to
the shareholders, bankers, business associates, retailers, suppliers,
customers, government and other regulatory agencies for their continued
support and faith in the Company. Your Directors are also happy to
place on record their appreciation for the whole-hearted co- operation,
commitment and contribution made by all the employees and look forward
to their continued support.
For and on behalf of the Board
Place: Kolkata S. L. Dugar
Date: 28.05.2012 Chairman & Managing Director
Mar 31, 2010
The Directors have pleasure in presenting the Fourth Annual Report and
audited accounts for the year ended 31st March 2010.
(Rupees in Lacs)
Particulars 2009-10 2008-09
Income from operations 4,571.47 - - -
Other income 162.28 - - -
Profit before interest and depreciation 850.00 (0.09)
Less: a) Interest 173.09 - - -
b) Depreciation 46.54 - - -
Profit before taxation 630.37 (0.09)
Less: Provisions for current tax, deferred
tax and fringe benefit tax 88.39 - - -
Profit (Loss) After Tax 541.98 (0.09)
Add: Balance brought forward from last year (2.05) (1.96)
Add: Balance transferred from RDB Industries
Limited on 948.81 - - -
demerger of Real Estate Undertaking
Balance available for appropriation 1,488.74 (2.05)
Balance carried to the Balance Sheet 1,488.74 (2.05)
Review of operations
Pursuant to the scheme of demerger, the Real Estate Undertaking of RDB
Industries Limited has been demerged to the company and by virtue of
the same the operations and profit after tax of your Company stood at
Rs 4571.47 lacs towards Sales and Rs 541.98 lacs towards Profit after
tax of the company. The same is not comparable with previous year as
there was no such business in the company.
During the year under review, the Company has not brought any changes
in its accounting policies.
Demerger
The Scheme of Arrangement of RDB Realty & Infrastructure Limited (the
Company) with RDB Industries Limited was approved by the Honble High
Court of Calcutta, vide Order dated 12.04.2010. The Certified copy of
the order of the Honble High Court was filed with the Registrar Of
Companies, West Bengal under Section 391(2) & 394 of the Companies Act,
1956 on 24.05.2010. The Share Exchange Ratio being fixed as 1:1.
Dividend
With a view to conserve the resources for long-term growth your
directors do not consider declaration of dividend for the year under
review
Directors
Mr. Abhishek Satyanarayan Rathi and Mr. Mahendra Pratap Singh,
Independent Directors, retire by rotation at the ensuing Annual General
Meeting, and being eligible, offer themselves for re-appointment.
Your Directors recommend the above appointment/re-appointment.
None of the Directors of your Company is disqualified as per the
provisions of Section 274(1)(g) of the Companies Act, 1956.
Particulars of employees
The Company does not have any employee falling within the scope of
Section 217 (2A) of the Companies Act, 1956, read with Companies
(Particulars of the Employees) Rules, 1975.
Directors responsibility statement
As required under section 217(2AA) of the Companies Act, 1956, your
Directors confirm:- 1. that in the preparation of the annual accounts,
the applicable accounting standards have been followed;
2. that the Directors have selected such accounting policies and
applied them consistently and made judgments and estimates that are
reasonable and prudent so as to give a true and fair view of the state
of affairs of the Company at the end of the financial year and of the
profit or loss of the Company for that period;
3. that the Directors have 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;
4. that the Directors have prepared the annual accounts on a going
concern basis;
Auditors
M/s M.K. Surana & Co., Chartered Accountants, the statutory auditors of
the Company who are to retire at the ensuing Annual General Meeting,
being eligible, have offered themselves for re-appointment and have
further confirmed that the said re-appointment will be in conformity
with the provisions of Section 224 (1B) of the Companies Act, 1956.
Auditors observation
Observations of the auditors when read together with relevant notes on
accounts and accounting policies are self- explanatory and do not
require any further comments.
Public deposit
During the year under review, the Company has neither accepted nor
renewed any public deposit and has no overdue or unclaimed public
deposit, as defined under Section 58 (A) of the Companies Act, 1956,
read with Companies (Acceptance of Deposit) Rules, 1975.
Particulars of conservation of energy, technology absorption and
foreign exchange earning and outgo
Particulars of conservation of energy, technology absorption and
foreign exchange earning 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 Board of Directors) Rules, 1988 are given
in the annexure attached hereto and forms a part of this Report.
Subsidiary companies
Pursuant to the scheme of Arrangement of RDB Realty & Infrastructure
Limited (the Company) with RDB Industries Limited, following companies
have now became the subsidiary companies of RDB Realty & Infrastructure
Limited:-
æ Bahubali Tie-Up Pvt. Ltd.
Baron Suppliers Pvt. Ltd.
Bhagwati Builders And Development Pvt. Ltd.
Bhagwati Plasto Works Pvt. Ltd.
Headman Mercantile Pvt. Ltd.
Kasturi Tie-Up Pvt. Ltd.
Raj Construction Projects Pvt. Ltd.
Rathi Essen Finance Company Pvt. Ltd.
Triton Commercial Pvt. Ltd.
Further in conjunction with the consolidated financial statements
enclosed with the accounts, prepared in accordance with the Accounting
Standard 21. Your company have already applied to the Central
Government for exemption from the provisions of Section 212(1) of the
Companies Act, 1956 relating to the attachment of the accounts of its
subsidiaries, and therefore the accounts of the subsidiary companies
would not be attached with accounts of your company, if exemption under
Section 212(8) of the Companies Act, 1956 is granted by the Central
Government and consequently a statement to this effect would be
provided to the members along with the notice convening the forthcoming
Annual General Meeting. Annual accounts of the subsidiary companies and
the related detailed information will be made available to the
shareholders seeking such information at any point of time. The annual
accounts of the subsidiary companies will also be kept for inspection
by any shareholder at your companys registered office and that of the
subsidiary companies concerned.
Acknowledgments
Your Directors would like to place on record their sincere gratitude to
the shareholders, bankers, business associates, retailers, suppliers,
customers, government and other regulatory agencies for their continued
support and faith in the Company. Your Directors are also happy to
place on record their appreciation for the whole-hearted co-operation,
commitment and contribution made by all the employees and look forward
to their continued support.
For and on behalf of the Board
Place: Kolkata S. L. Dugar R. P. Pincha
Date: 29.05.2010 Director Director